Personnel Today

PersonnelToday

PERSONNEL TODAY JULY - DECEMBER 2019

NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 01

PERSONNEL TODAYA Half-yearly Journal of NIPM

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EditorDr. (Capt.) C.M. Chitale

MembersProf. (Dr.) Aloke Kr. Sen

Mr. Nrusingh Prasad PanigrahyMr. Vishwesh P. KulkarniDr.Pradeep Kumar Sahu

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C O N T E N T SJULY - DECEMBER 2019 l VOL-XXXX l No. 2

02 EditorialDr. (Capt.) C.M. Chitale

03 An empirical study on Succession Planningfor the Junior & Mid-Level Managers inSelect IT Companies in West Bengal (India)Dr. Bobby Basu, Dr. Aloke Kr. Sen & Dr. Pranam Dhar

09 People Analytics - The Signatures and SiloesProf. (Dr.) K. Bhanu Prakash & Prof. Dr. P.R.K. Raju

15 Pension System in Public SectorUndertakings of IndiaDr. Subir Bikas MitraMr. Biswabhushan Behera

22 Effect of Diversity on Job Perspectives inSelected Sectors of Indian EconomyMs. Puvvada Devaki DeviMr. Gudivada Venkat Rao

33 Skilling Millennials to remain Entrepreneurialthrough New Age EducationDr. Purushottam Bung

35 We must not marginalize our trade unions:We must empower themDr. Dipak Kumar Bhattacharyya

40 Book ReviewsProf (Dr) Aloke Kr Sen

41 Legal Notes

PERSONNEL TODAY JULY -DECEMBER 2019


Human Resource is at the core of any organization. Other resources are material resources. "Getting the work Done"is not easy in different work situations.

Can we consider " Human Response Management" instead of "Human Resource Management"? There could bedifferent views on this subject. However I feel that the managers job is to create and design an internal environmentconducive enough,where people can work together to achieve assigned targets to them for contributing to theorganizational goals/targets. One has to achieve positive response from the working teams.

Emerging trends in Technology is going to create more challenges for professionals in HR and other disciplines ofmanagement.A report by Infosys and Garner predicts that automation and Artificial Intelligence might lead toelimination of middle management roles over the next decade or so (TOI : 22/01/2020)."We would need fewer peoplemanagers as many of the management tasks such as collection of data, supervising actions and ensuring compliancewill be completed by algorithm and robotics"- said a thought leadership report by Garner (TOI).

It is expected that from recruiting to performance reviews department of " robot resources will rival human resources"by 2028. Artificial Intelligence itself can replace nearly 400 million workers globally over the next decade(TOI)

This prediction is going to pose challenges for HR professionals as follows :

a) How to motivate middle level manpower to adapt and learn new technology like AI,IOT etc.Challenge isto get a favourable response from such people.

b) The new entrants in HR profession must be equipped with AI,IOT and also ready to learn arrangement intechnology for their future career growth.

NIPM members all over should take this as " Mission" for developing Techno- HR professionals.

Editorial

Dr. (Capt.) C.M. ChitaleEditor



An empirical study on Succession Planning for the Junior &Mid-Level Managers in Select IT Companies in West Bengal (India)

Dr. Bobby Basu, Dr. Aloke Kr. Sen & Dr. Pranam Dhar

Abstract

Most organizations do not have the next generation of leaders ready to fill the vacant roles. Consequently, under-qualified people move into leadership roles as there is no one better to take over. This is a global issue and shouldbe addressed much before the individuals do retire. The only way to reduce the effect of lost leadership is througha strong succession planning (SP) program that identifies and prepares the next generation of leaders throughmentoring, training and stretch assignments to take the helm when the time comes. This helps in a smooth transitionof business from one personnel regime to another. In this article, an attempt has been made to study the perceptionof the employees of select IT companies in West Bengal about the practices of succession planning adopted by thecompanies to address its human capital challenges, especially for the junior or mid-level managers.

Dr. Bobby Basu, Associate Professor, Heritage Business School, e-mail: [email protected]. Aloke Kr. Sen, Former Director, Heritage Business School, e-mail: [email protected] Dhar, Associate Professor, West Bengal State University, e-mail: [email protected]

Introduction

Most of the studies on Succession Planning were doneon CEO successor, to identify the link between attributesof CEO successor and financial organizationalperformance. From non-financial view, many researchersargue that succession planning yields a return in formof internal operational efficiency and better retention ofhigh-performing staff. A number of studies reveal thatthe strongest determinant of succession origin is pastperformance of a firm and firms usually replace anincumbent CEO with an outsider when the firmperformed poorly in the recent past. Succession Planningfor CEO or Senior Executive Level is decided by Boardof Directors and is practically beyond the scope of thestudy. Moreover, there is practically no study onsuccession planning practices for mid-level-executives.The purpose of this paper is to understand the successionplanning practices adopted by the select IT companiesin West Bengal for its mid-level managers.

What is Succession Planning?

Succession Planning is one of the top focus areas forHR as it attempts to pave the way for a smooth transitionof business from one personnel regime to another.

Succession planning is defined as "deliberate andsystematic effort by an organization to ensure leadershipcontinuity in key positions, retain and develop intellectualand knowledge capital for the future and encourageindividual" (Rothwell, 2010). It is a voyage, not an endby itself. Assessment, Identification, and developmentof high potential in the organization is solution tosuccession planning and talent management(Krauss,2007).The entire process of Succession Planning shouldmatch with the strategic vision of the company. Fourstages of an effective succession plan include:Understanding the strategic plan of the business;Developing a clear understanding of the capabilities andcompetencies requirement for the identified role to meetthe strategic plan; Identifying employees who couldpotentially fill and perform highly in such roles; andPreparing suitable employees with the potential, throughmentoring, training and job rotation to be ready foradvancement into each identified role. Successionplanning has traditionally referred to planning forleadership continuity at the CEO level, but todaysuccession planning provides for leadership continuityat all levels(Cooke, 1995). It is rated as one of the topfocus areas for HR as the biggest challenge faced by



today's organization is to get the right person at the rightposition.

Performance versus Potential

Most researchers and practitioners agree on theimportance of employee assessment to successionplanning. For identifying the right candidate forsuccession, both performance appraisals, appraising theperformance of an employee on the current job as wellas potential appraisal, appraising his potentials for thefuture job are important. Two essential objectives of thesuccession planning program are deciding the positionto be covered, and the person to be included. Successionplanning links candidate's potential to positionneeds(Carnazza, 1982). An organizaton's successionplan goes hand in hand with employees' careerdevelopment plan. The very purpose of successionplanning gets lost if it does not take into considerationthe interest of the concerned employee.An organization'ssuccession plan goes hand in hand with employees'career development plan. The very purpose of successionplanning gets lost if it does not take into considerationthe interest of the concerned employee. Pattanaik & Rao(2013) have categorizes the employees into 9 categoriesas per their performance and potential, as shown below:

Components of Succession Planning

Literature reveals that succession planning is measuredin terms of three components, namely Process andChange Management, Selection of Successors andDevelopment of Successors(Mandi, 2008). The firstcomponent of Succession Planning is Process & ChangeManagement and it includes items like managementcommitment, whether the top management is encouragingpromotion from within or whether the identification anddevelopment of the potential employee is based on

strategic vision of the company. The authors have renamedthis component as 'Management Support'. It is very vitalto link succession plan to business strategy to understandthe kind of people that will be needed with the requiredset of skills for the future(Levitz, 2008). Elements of aneffective succession plan are: visible support from theCEO and top management; owned by line management,simple and tailored to unique organizational needs; linkedwith the strategic business plan(Taylor & McGraw,2004).

The second component is selection of candidate basedon their background, job performance, potentials andformation of talent pool. It should be ensured that eachkey position has alternative potential successors andeach talent has multiple potential promotion paths. Thetrend in scope of SP is to cover all the critical positionswhich are essential to achieve the necessary work resultsand not just top managerial positions. Strategic plan canbe a guideline for this aim.

The third component of succession planning is thedevelopment of successor. Identifying development planand follow-up is a mandatory part of this process. Theplan should be tailored to the individual needs andinterests of successor. Best development methods include360-degree feedback, executive coaching, mentoring,networking and challenging work assignments (Groves,2007)

Objectives of the Study

The objective of this study is to understand the existingsuccession planning process for the Junior to Mid-LevelManagers in select IT companies in India

Research Methodology

The companies chosen for the study are the three leadingIT companies in West Bengal. The companies are selectedon the basis that all these three companies have establishedmethod for identifying the potential candidates anddeveloping them, which are the important aspects ofsuccession planning. The study targeted employees fromJunior to Mid -Level management.The data was collectedusing a structured questionnaire. The study combinedboth the qualitative as well as quantitative methods toaddress the research study. A 17-item questionnaire wasdeveloped to measure the construct, with 7 items on

P

o

t

e

n

t

i

a

l

Low Potential -High PerformanceKey Contributor

Medium Potential-High PerformanceHigh Performer

High Potential-High PerformanceConsistent Star

Low Potential-Medium PerformanceCapable Performer

Medium Potential-Medium Performance

Valued Performer

High Potential-Medium Performance

Rising Leader

Low Potential -Low Performance

Under Performance

Medium Potential-Low Performance

On the Learning Curve

High Potential-Low Performance

Role Mismatch Leader

Potential



demographic profile and 10 items on research variables,measured on a five-point Likert Scale, with scaleresponses varying from Strongly Disagree (1), Disagree(2), Neutral (3), Agree (4) and Strongly Agree (5). Thequestionnaire was made in the form of a Google doc aswell in the form of an excel sheet and was sent to 208people in the three select IT companies. Out of 348,only 153 completed survey questionnaire were receivedby the researcher. This represented a response rate of44%.

Analysis

To analyze the quantitative data, the authors haveconducted Factor Analysis, Correlation Analysis andRegression analysis. The quantitative research issupplemented by qualitative research, which involvedface to face interviews with the employees using a semi-structured interview schedule.

Findings from Qualitative Analysis

An in-depth study of the HR practices at the three ITcompanies reveals that the process followed by thesecompanies to identify their potential talents is more orless the same and they have a structured SuccessionPlanning process for junior and mid-level managers.These companies strongly believe that with rapidtransformation of business, new skills emerge and newroles become strategic. At the start of each year,employees in consultation with his Managers set PersonalBusiness Commitments (PBC) that align directly withorganization's overall business goals and values. Theentire framework is designed to reinforce theorganization's high-performance culture and effectivelydifferentiate employees based on their contribution tothe company. This stimulates an environment whereevery employee is stimulated to perform at an exceptionallevel. Managers and employees check in and discussperformance progress throughout the year. At the endof the year, the manager evaluates the contributionsof the employee and gives him a PBC rating reflectinghis performance. The PBC ratings are tied to the growthof the employees in terms of pay increase and careeropportunities. It's the responsibility of the manager tohelp his employees perform at their best and becometop contributors to the company - and appropriatelyreward them for it. It creates a culture so that employeesknowing their expertise and personal aspirations discusstheir career development with their managers.

All the three companies use a rigid bell curve to evaluatethe performance appraisal of its employees. PerformanceEvaluation of each level of the organizational hierarchydivides the employees into five zones: Smart, Mediocre,Average, Retarding and Trailer. However, the maximumnumber of employees that can be accommodated in thesmart zone i.e. Top Performers' category is fixed, andthis number decreases as we move upward in thehierarchy. The rigid distribution of the bell curve helpsthe companies to identify the potential candidates whocan be groomed to take up the higher vacant positions.

The companies follow a robust 'Job Family Framework'that comprises jobs from various business verticals. Anemployee may choose to move vertically to deepen hisknowledge in his field of expertise or he may decide tomake lateral moves to broaden his range of skills.Whichever path he chooses, he creates an IndividualDevelopment Plan each year in consultation with hismanager to help him to continue to grow. It helps identifythe skills he needs to fulfill current and future businesscommitments. The select companies also encourage asystem to produce a list of jobs currently* available inthe Global Opportunity Marketplace based on thegeographic location, band, job role, experience, etc.Once an employee opts in to this service, he receivesweekly notifications to view potential job matches. Ifan employee is interested in applying for one of thepotential job matches, he talks to his manager. Hismanager is his career advocate, understands his goals,and can work with him to determine if the job he isinterested in is a good fit and helps him through theprocess. The employee also talks to his mentor, othersin a similar role and if all seems right, he applies for thejob.

Findings from Quantitative Analysis

The analysis of demographic profile shows that almostequal representation of the respondents from eachorganization is taken under study. Specialized viewswere collected from the respondents as non-IT Executiveswere not included in the study. An analysis of the ageprofile of the respondents shows that IT companies aremainly driven by young and dynamic workforce. Ananalysis of respondents' tenure with the organizationdepicts that almost all the employees are trying to retainthemselves in the same industry, irrespective of the



situational changes.To reduce the numbers of researchvariables to a workable number of factors, the multivariatetechnique of factor analysis was conducted using SPSS20, which reduced the variables into three factors. Thetotal variance explained is 66.235%.

Table 1: Rotated Component Matrix

Study of Factor 1

The first factor extracted after factor analysis comprisesof variables x1 (Identifying critical position for SP) andx3 (Established Performance Appraisal system), x4(Strong assessment policy), x9 (Awareness ofcompetencies to be developed) and x10 (Success inprojects determines promotion) and is named as

Identification of Potential Candidate. The table belowshows the internal relationship/ association among theitems and between the items and the First factor.

Component

1 2 3

Identification ofCritical Position (x1). .719 -.174 .027

Strong commitment fromorganization's senior leadership (x2) .202 .797 .080

Established performance appraisalsystem in place (x3). .799 .022 -.020

Strong assessment policy to identifythe potentials of an individual (x4) .797 .050 .023

Strong leadershipdevelopment programme (x5) -.021 .108 .909

Linkage of skill developmentefforts to the business strategy (x6). .031 .730 .230

Encouraging promotion fromwithin for critical positions (x7). -.022 .891 -.046

Robust Training & Developmentprocess for the potential candidates (x8). .008 .091 .911

Aware of competenciesto be developed (x9) .673 .171 .045

Getting Ahead depends onSuccess in projects/ missions (x10). .678 .305 -.127

Source:Primary Data

Study of Factor 3The third factor comprises of variables x5 (StrongLeadership Development Program in terms of coaching& mentoring) and x8 (Robust Training & DevelopmentProcess for Successor) and is named Development Planfor the successors. The table below 4 shows the internalrelationship/ association among the items and betweenthe items and the second factor. All the correlations ofthe items with the factors are significant at 1% level andinter-correlations within the items also show significantrelationship.

Table 3: Inter-Item Correlations for Factor 2

Mean Std. Factor_SP_ X2 X6Deviation 2

Factor_SP_2

X2 3.97 .716 .797**

X6 3.88 .691 .730** .432**

X7 3.87 .604 .891** .631** .497**

** Correlation is significant at the 0.01 level (1-tailed).

Study of Factor 2The second factor comprises of variables x2 (Highlycommitted Senior Leadership), x6 (Skill developmentefforts linked to business strategy), x7 (Encouragespromotion from within) and is named as ManagementSupport. The table below 3 shows the internalrelationship/ association among the items and betweenthe items and the second factor.


Mean Std. Factor_ X1 X3 X4 X9

Deviation SP_1

Factor_SP_1

X1 3.59 .590 .719**

X3 3.54 .538

.799**

.502**

X4 3.59 .612 .797** .417** .624**

X9 3.60 .652 .673** .313** .350** .417**

X10 3.88 .688 .678** .320** .402** .433** .540**

** Correlation is significant at the 0.01 level (1-tailed).




Mean Std. Factor_SP_ X5Deviation

Factor_SP_3

X5 3.92 .644 .909**

X8 3.93 .603 .911** .698**

** Correlation is significant at the 0.01 level (1-tailed).The regression analysis showing the association between the factorscores obtained from the factor analysis as independent variablesand Succession Planning level as the dependent variable is shownin the Table 5.

Table 5 Model Summary

Model R R Square Adjusted R Std. Error ofSquare the Estimate

1 .748a .560 .551 .275

Table 6 Co-efficients

The estimated regression equation as obtained from tableis written asSP = 3.850 + 0.479PC + 0.475MS + 0.324DPP value (0.000) (0.000) (0.000) (0.000)

The regression results indicate that all the three factors,i.e. Identification of potential candidate, Developmentplan for successor and Management Support positivelyinfluence the Succession Planning. This is evident fromthe positive signs of the estimated coefficients of thecorresponding factors. Moreover, all the three factorsare significant in influencing succession planning in anorganization as indicated by their p values.

Discussions

The data as obtained from the administration ofquestionnaire and in-depth interview of the employeesof the select IT companies reveals the 'Identification ofpotential candidate' to be the most important factor inexplaining the Succession Planning. IT industry is aproject-driven, knowledge -based industry, cateringquality conscious customers across the globe. This

industry is highly challenged by fast changing technologyand stiff competition between the competent competitors.Change in technology, business policy, project patternand project-fit skill requirement are the characteristicsof an IT company. Hence it is very important forcompanies having abovesaid characteristics to identifythe right candidate having skill, motivation and leadershipqualities to forecast and meet the future challenges.

However, an in-depth interview with the respondentsreveal that the low factor loading for the variable x9(Awareness of competencies to be developed) can beexplained by the fact that feedback system regarding thepotentials/competencies of the employees in thesuccession planning process is weak. Organizationsshould be more transparent in giving proper feedbackto its employees about their competencies and potentials.Moreover, the low factor loading of the variable x10(Getting ahead depends on success of projects) can beexplained by the fact that In IT industry, promotion andgrowth of an employee are basically based on Project-Fit rather than the individual performance of the employeeon the current project.

The second factor 'Management Support' emerged asthe second most important factor that impacts successionplanning. This is very obvious as Succession planningis a top-down approach and its implementation is justnot possible without management support .In-depth interview reveals that the low factor loading ofvariable x6 (Skill development efforts linked to businessstrategy) is due to the fact that these organizations arefocusing on skill development based on upcomingprojects rather than the long-term strategy of the business.

The least important factor that impacts successionplanning is factor 3, namely Development Plan for thesuccessor, although the factor loadings of the variablesare high. In IT companies, training is imparted on thebasis of technology trend as foreseen by HR departmentin consultation with Top Management. However, manya times, the training process is not found to be effectivebecause of following reasons.

1. Huge time gap between imparting of training andusage of trained skills.

2. Trained skills becoming obsolete by the time it hasto be demonstrated because of fast change intechnology in IT sector.

Model UnstandardizedCoefficients

StandardizedCoefficients

Sig.t

B Std, Error Beta

(Constant) 3.850 0.22 173.405 .000REGR factor score 1

for analysis 1 196 .022 8.741 .000.475REGR factor score 2

for analysis 1 196 .022 8.741 .000.475

.133 .022 5.960 .000.324REGR factor score 3for analysis 1

a. Dependent Variable. Y1



ConclusionGetting the right person for the future is the toughestchallenge faced by today's organizations and it is clearthat organizations of all sizes and industries faceincredible challenges in preparing managerial personnelto assume future leadership positions. Although, theselect IT companies are among the very few companieswhich have taken initiatives to address the human capitalchallenge, the very purpose of succession planning willbe lost if strategic directions of the company are nottaken into consideration. An effective succession planningwill be in place only when the company takes intoaccount the most significant challenges the companyand its industry are likely to face over the next four tosix years. Also the companies should consider the impactof SP practices on the attitude and morale of theemployees.

References:

1. A.M. Levitz (2008), Succession Planning LeadershipDevelopment, doctoral diss., Wilmington University.

2. A.R. Mandi (2008), A Case Study ExploringSuccession Planning, doctoral diss., GeorgeWashington University.

3. Cooke, R (1995), Succession Planning, Credit UnionManagement, 18(10), pp 27-28.

4. J.A. Krauss (2007). Succession Planning andTalent Management Recommendation to ReduceWorkforce Attrition and Preparation for an AgingPopulation, doctoral diss., Wilmington University.

5. J.P. Carnazza. (1982). Succession/replacementplanning programs and practices: A report:Center for Research in Career Development. NewYork : Columbia University Graduate School ofBusiness

6. K. S. Groves (2007), Integrating LeadershipDevelopment & Succession Planning Best Practices,Journal of Management Development, Vol. 26 No.3, pp. 239-260.

7. K.V.S Pattanaik & G. Venkat Rao. (2013). IntegratingCompetency with Talent Management: GMRExperience. Personnel Today, January - March 2013,pp 22 - 28.

8. Rothwell WJ (2010). Effective Succession Planning,Ensuring Leadership Continuity and Building Talentfrom within, 4th edition, American ManagementAssociation, New York.

9. T. Taylor, P. McGraw(2004), Succession managementpractices in Australian organizations, InternationalJournal of Manpower, 25(8), pp 741-758.



People Analytics - The Signatures and SiloesProf. (Dr.) K. Bhanu Prakash & Prof. Dr. P.R.K. Raju

Abstract

People matters, processes powered by algorithms, technology leverages, and scenario personas are making the senseof HR-4.0 in future i.e., My Work is My Life and the Opportunities I have are Priceless. (Deloitte, The Future ofHuman Resources: A Glimpse into the Future, 2019).

The Yellow, Red, Green and Blue Worlds redefined the 'Future of Human Capital Management' in the Gig Economy.The Digitalisation and General Data Protection Regulation (GDPR) refined and reshaped the Science of Workforce.About 69% workers in India are confident about their digital skill sets and most likely to possess STEM skills, followedby China and the US (PwC). 'People Analytics'emerged as a 'Game Changer and Next-Level of Evolution of theSmart Workplace' aimed at providing insights into each process by gathering data and then using it to make relevantdecisions about how to improve the processes.

In the era of Analytics, the insights are used in new ways to reinvent and improve every step of the Human CapitalManagement Process. People Analyticsis a systematic collection, analysis, interpretation and implementation ofworkforce data in the area of human resources and make people-related decision-making objective, transparent,data-driven and, thus, make the function quantitative in nature.People Analytics' synthesizes the qualitative andquantitative data and information to predict insights for decision-making and also supports in the process of'Management of People'.The world's most successful companies Google, Nissan, IBM, and Goldman Sachs areusing People Analytics to improve Recruiting and Retention, Performance Evaluation, Organizational Change,Leadership, Hiring and Promotion, Job Design, Compensation, and Collaboration (Wharton).

People Analytics, a Predictive EBM and Powerful Data Science, in HCM resulting 80 per cent increase in RecruitingEfficiency, 25 per cent rise in Business Productivity, and also 50 per cent decrease in Attrition Rates. (McKinsey &Co., 2019).Keeping in view this, an earnest attempt has been made on the Signatures and Silos of People Analyticscustomised in IBM Kenexa, Zoho People, Tren Data, and Aurion Analytics.

Dr. K. Bhanu Prakash, Professor - Consulting & CFO, GIET (A), Rajamahendravaram, East Godavari District, AndhraPradesh, E-mail: [email protected]. P.R.K. Raju, General Manager (Rtd.,), ONGC &Director GIET (A), Rajamahendravaram, East Godavari District, AndhraPradesh, E-mail: [email protected]

People Analytics - A Premiere

People matters, Purpose driven, and PerformanceOriented (3Ps') culture are making the sense of HR-4.0in the digi-era. The Yellow, Red, Green and Blue Worldsdefine the 'Future of Work and Workforce' in the GigEconomy. The Cognitive Capabilities and Computing(IBM), Entrepreneurial Talent (GTCI, 2019), Robotics

and Autonomous Agents, Advanced Machine Learning

(AML) and Artificial Intelligence (AI), Robust and

Reliable Solutions and Wearable Tech in Workplaces

redefined and reshaped Human Capital Management

(HCM).



'People Analytics', a 'Data Science Management forHuman Resources', applies the data sciencemethodologies and techniques to the field of HumanResources with the aim of getting to know the peoplein our organization better and increasing their level ofsatisfaction and productivity. (Eduardo Valencia, 2018).People Analytics involves collecting, analysing andusing employees' data and business performance toprovide business insights, solve business problems andinform business decisions and strategy (xperthr). Itleverages the power of data to drive better outcomesfor business and employees (Erik van Vulpen, 2016)and offers a unique opportunity for HCMProfessionals to position themselves as Strategic SeniorManagement Partners, using analytically proventechniques to make informed decisions that improveemployee engagement and management in anorganization and also hire and retain employees whodrive higher value.

Exhibit-1: People Analytics - A Kaleidoscopic View

Source : Google Trends - Breakdown By Region(22nd Mar, 2019).

Source: Google Trends By Category(22nd Mar, 2019).

1 Eduardo Valencia (2018)., People Analytics. Dataand Text Analytics for Human Resources, LeanPublishers, Canada, p.iii.

2 www.xperthr.co.uk/good-practice-manual/people-analytics/161599/

3 Erik van Vulpen (2016)., The Basic Principles ofPeople Analytics: Learn How to Use HR Data toDrive Better Outcomes for Your Business andEmployees, Create Space Independent PublishingPlatform, US.

A peep into Exhibit-1 reveals that PeopleAnalytics predominates in both the US and the UK.However, India i s the Power House forHR Analytics and 76 percent implementing the HRAnalytics.

100

75

50

25

Mar 25, 2018 Jul 29, 2018 Dec 2, 2018Average

People Analytics HR Analytics

Workforce Analytics and Talent Analytics Talent Analytics

People Analytics HR Analytics

Workforce Analytics and Talent Analytics Talent Analytics

Exhibit-2: People Analytics vis-à-vis HR, Workforce&Talent Analytics

Source: Deloitte Human Capital Trends Survey, 2018, p. 10.

Table-1: People Data - The Metrics and Analytics(in per cent)

Global

America Europe, Middle East & Africa Asia Pacific

Latin&

South America

NorthAmerica

Africa

Central&

EasternEurope

MiddleEast

NordicCountries

WesternEurope

AsiaAsia Oceania

84.8 88.2 85.0 89.3 81.4 86.4 84.7 77.2 90.1 85.6



Analytics, HCM Analytics, People Analytics - TheEmpirical TonesThe integration of Yellow (Humans Come First), Red(Innovation Rules), Green (Companies Care) and Blue(Corporate is King) Worlds define the 'Future of Workand Workforce'. Keeping in view this, CHROs can adaptlatent and latest skills, experience modern employeeengagement, and cater the expectations and demands ofToday's and Tomorrow's skilled workforce as well asthe clientele' (KPMG, 2019) .Davenport and Harris (2006) defined'Analytics'as theextensive use of qualitative and quint-essential data andanalysis, explanatory and predictive models, and fact-based management to drive decisions and actions.DataAnalytics deal with HCM that are in the form of TalentIntelligence (Snell, 2011) , Talent Analytics (Davenport,Harris and Shapiro, 2010) , HRAnalytics (Mondore,Douthitt and Carson, 2011) or Workforce Analytics(Hoffmann, Lesser and Ringo, 2012b) .HCMAnalyticscan be defined as a predictive and prescriptivepower ranging from HRIS or HR Metrics to the end ofthe spectrum for the benefit of strategic decision makingby organizing, analysing, interpreting and presentingthe data (Bassi, 2011).HCM Analytics supports CHROs' in decision-making,critical and cognitive thinking and the appraisal of allforms of evidence. Evidence Based Management(EBM)intends to contribute organizational andmanagement effectiveness in a context-specific (Baron,4. The Future of HR 2019: In the Know or in the No,

KPMG International, 2019.5. Davenport, T. H., Harris, J. G. (2006). Competing on

Analytics: The New Science of Winning.Accenture.Institute for High performance Business.

6. Snell, A. (2011)., Developing Talent Intelligence ToBoost Business Performance. Strategic HR Review,Vol.10, No.2, p.p.12-17.

7. Davenport,T. H., Harris, J., & Shapiro, J. (2010).,Competing on Talent Analytics, Harvard BusinessReview, Vol.88, No.10, p.p.52-58.

8. Mondore, S., Douthitt, S., Carson, M. (2011).,Maximizing the Impact and Effectiveness of HRAnalytics to Drive Business Outcomes, StrategicManagement Decisions, People and Strategy, Vol.34,No.2, p.p.21-27.

9. Hoffmann, C., Lesser, E., Ringo, T. (2012b).,Calculating Success: How the New WorkplaceAnalytics will revitalize Your Organization, HarvardBusiness School Press.

10.Bassi, L. (2011). Raging Debates in HR Analytics,People and Strategy, Vol.34, No.2, p.1..B 2011),helps to increase efficiency and generate betterbusiness results (Harris et al., 2010).

The 'Data Science Management for Human Resources'is termed as 'People Analytics'and it applies data sciencemethodologies and techniques to the field of HumanResources with the aim of getting to know the peoplein our organization better and increasing their level ofsatisfaction and productivity (Eduardo Valencia, 2018).The analyses of 'Big Data'help in identifying, recruiting,and rewarding the best personnel. The exploration ofexponential data and data-driven techniques for managingpeople, and making strategic, operational and systematicdecisions affect the organisation as a whole (WhartonEducation). People Analytics is one of the best platformsto accelerate the analysis of personnel issues. Meaningfulinsights, better decisions, and immediate action cometogether give a fresh lease of life across people, places,and devices in a real-time enterprise experience(HBR,2017). With access to data from cloud solutions,and other data repositories, the People Analyticsmonitoring, simulating, and driving the change in thedigi and gig economies. People Analytics will be usefulto the organisations with a vision and be helpful whenit is predictive. It provides a lens into the future regardinglikely business outcomes.People Analytics - The Phases of Evolution

Source: www.sap.comThe Data Management Systems (DMS) reduce datasprawl, analyse data in an instant, and providing data-driven insights to boost business impact and consumerexperience. The First Phase in People Analytics alwaysleverages state-of-the-art technology and the toolsrevolutionizing the ways and means of People Data usedby CHROs' and Business Leaders. Online PersonalisedDashboard consisting of HR-KPIs in real-time andprovide the most effective DSS (Decision SupportSystem) anytime and anywhere. Technology furtherfosters the formation of a data-driven culture and puttingdata at the core of the Organisational Decision-Making.11.Baron, A. (2011)., Measuring Human Capital,

Strategic HR Review, Vol.10, No.2, p.p. 30-35.12.Harris, J. G., Craig, E., & Light, D. A. (2010)., The

New Generation of Human Capital Analytics,Accenture Institute for High Performance, ResearchReport, p.p. 2-10.

Data

Standardreporting

Advancedreporting

Advancedanalytics Predictive

modeling

Simulations/Optimization

Maturity of Analysis

Bus

ines

s Va

lue

Predict and Act

What happend andwhy did it happen?

When will it happen?What is the best that

could happen?

What mighthappen?

Sense and Respond



13.Eduardo Valencia (2018)., People Analytics. Dataand Text Analytics for Human Resources,Lean Publishers, Canada, p.iii.

14.Wharton Education (2019)., People Analytics: HRT r a n s f o r m a t i o n t h r o u g h D a t a ,DOI:https://executiveeducation.wharton.upenn.edu

The Second Phase deals with the Predictive Analyticsthat will help to make predictions about Employee LifeCycle. The integration of People Analytics with Machine

Learning (ML) or Blockchain boosts business impactand accelerates business processes through advancedautomation. Resume Matching fast-tracks the screeningprocess by selecting the right candidate, at the right placeand at right place with the best talents and education.Artificial Intelligence (AI) also helps to eliminate humanerror,by removing personal bias in the screening process(Dr. Christian Schmeichel, 2018).People Analytics - The Structural Signaturesand Siloes

(1) Signature - Ideation

(2) Signature – Influence

(3) Signature - Efficiency

(4) Signature - Innovation

(5) Signature - Silo

(6) Signature - Vulnerability



Source: Paul Leonardi and Noshir Contractor (2018).,Better People Analytics, Harvard Business Review,Dec, URL:https://hbr.org/2018/11/better-people-analytics

The 6-Structural Signatures viz., Ideation, Influence,Efficiency, Innovation, Silo and Vulnerability form thebedrock of Relational Analytics taking People Analyticsa step forward to improve the performance. The IdeationSignature identifies the individuals with good ideas. The'Purple' shows good ideation and 'Orange' is less likelyto generate ideas, even though the people may be creative.The Influence Signature predicts the behaviour ofemployees who will change the behaviour of others'.The 'Purple' is more influential and prominence than'Orange', better connected, and spread ideas faster. TheEfficiency Signature taps the people who have the bestrelevant skills and focusing on 'Team' that will completeprojects on time. The 'Purple' Team Members showhigher internal density indicates cohesiveness amongthem. The Innovation Signature focuses on the 'Team'that will innovate effectively and efficiently. The 'Purple'Team Members have different perspectives, low densityand not deeply interconnected. The Siloes are naturaland unavoidable and Silo Organisation has multipledepartments with less external range. Each colourrepresents the 'Departments' and are inter-connected.The modularity of the group i.e., the ratio of internal toexternal communication is high. Relational Analyticshelp to identify vulnerabilities in the Structural Signatureof an organization with the help of VulnerabilitySignature. It identifies individuals who act as loneconnections to key external stakeholders with'Information Flow'. Green' is critical external supplierto the Departments viz., 'Blue, Purple, and Orange'.

Big Data Management, Engaging-Rewarding-RetainingTalents, Analytical Acumen, HCM Framework andStandards, Information Flow, Integration of Verticalsand Horizontals, Cultural Assessment, Social NetworkAnalysis and Transforming Strategy into Results byenabling People's Success are a few pivotal Siloes inHCM. People Analytics, a real-time, forward-looking,and integrated analytics distinguished the disruptor fromthe disrupted and move everyone up the 'KnowledgeCurve'.

People Dynamics - The Future of People Analytics

Today's World of Work, Workforce and Workplace aredemanding 'Wellness and Wellbeing'. The World of Workis innovation-based, social media centred and demandingthe Healthiness and Happiness. The Workforce is Social,Mobile, Analytic and Cloud (SMAC) and Workplace isFluid, Casual and Virtual. Leadership and EffectiveCommunication are critical determinants of 'Change'and People Analytics Tool (RWA -Ready, Willing andAble) assesses preparedness for Change. The PeopleAnalytics emerged as the Order of the HR and it focuseson Employee Empathy (EE), Power To People (PTP)and the Wellness and Well-Being of the Workforce(Healthy and Engaged)(PwC, 2018).

People Analytics will take HCM to a different dimensionand it can derive huge insights from big data and predictprobable issues way before they strike an organisation.It also develops strategies, structures, systems andprocesses as well as building capabilities that enable theattraction, development, engagement, retention andmanagement of people.

Moreover, it assists the HCM to focus on people priorities,keeping in view the cost, capability, capacity, connection,and compliance related considerations. Further, itcultivates the fact-based and data-driven culture thatmany organizations and leaders try to pursue.

People Analytics is an epic shift and it's a time to 'Reformand Transform'. The Future of People Analytics wouldinvolve designing specific programs and strategies inrelate to Workforce Optimisation, Developing Talents,Workforce Intelligence, Behavioural ChangeManagement. The presence of 'Human Touch withEmotional Intelligence' is absolutely critical to the successof 'People Analytics'. To sum up, the Future of PeopleAnalytics ensue an engaged workplace, happy employees,reward strategies that 'Mapping Talents' and ensuringthere is 'Diversity and Inclusion' in every sense i.e.,People matters, Purpose driven for PerformanceOrientation.



References:

Books

1. Ben Waber (2013)., People Analytics: How SocialSensing Technology will Transform Business andWhat It Tells Us about the Future of Work, 1st Edition,FT Press Analytics, New Jersey.

2. Erica Volini, Pascal Occean, Michael Stephan, andBrett Walsh (2017)., Digital HR: Platforms, Peopleand Work, Global Human Capital Trends 2017:Rewriting the Rules for the Digital Age, DeloitteUniversity Press, USA.

3. Jean Paul Isson, Jesse S. Harriott, Jac Fitz-enz (2016).,People Analytics in the Era of Big Data: Changingthe Way You Attract, Acquire, Develop, and RetainTalent, Wiley Publications, Canada.

4. Mohd. Sadique Shaikh Anwar, Tanvir Begum NiyazAli (2018)., People Analytics: Approach to ModernHuman Resource Management Concept & Strategy,LAP Lambert Academic Publishing, Germany.

5. The Future of HR 2019: In the Know or in the No,KPMG International, 2019.

Articles

1. Bassi, L. (2011)., Raging Debates in HR Analytics,People and Strategy, Vol.34, No.2, p.1.

2. David Green, (2017).,The Best Practices To Excelat People Analytics, Journal of OrganizationalEffectiveness: People and Performance, Vol. 4 Issue:2, p.p.137-144.

3. Gal, U., Jensen, T. B., & Stein, M. K. (2017)., PeopleAnalytics in the Age of Big Data: An Agenda for ISResearch.http://aisel.aisnet.org/cgi/viewcontent.cgi?article=1000&context=icis2017

4. Henri de Romrée, Bruce Fecheyr-Lippens, and BillSchaninger (2016)., People Analytics Reveals ThreeThings : HR May Be Getting Wrong, McKinsey &Co., Quarterly, July, p.p. 1-4.

5. Hoffmann, C., Lesser, E., Ringo, T. (2012b).,Calculating Success: How the New WorkplaceAnalytics will revitalize Your Organization, HarvardBusiness School Press.

6. KPMG HR Transformation (2013).,People are theReal Numbers : HR Analytics has Come of Age,KPMG - Switzerland.

7. Shweta Shrivastava, Kritika Nagdev, Anupama Rajesh,(2018).,Redefining HR using People Analytics: TheCase of Google, Human Resource ManagementInternational Digest, Vol. 26, Issue: 2, p.p..3-6,https://doi.org/10.1108/HRMID-06-2017-0112

8. Thomas H. Davenport (2006), Competing Analytics,Harvard Business Review, p.p. 1-10.

URL

www.hbr.org www.kpmg.comwww.mckinsey.com www.pwc.com

www.sap.comwww.shrm.org


15NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT

Pension System in Public Sector Undertakings of IndiaDr. Subir Bikas Mitra

Mr. Biswabhushan Behera

Abstract

Pensions are post-retirement income benefits provided to employees, which evolved during the British Raj in India.Various types of Pension Systems are available to employers and employees, along with pension benefit schemesintroduced by the Government.The concept of Pension in Public Sector Undertakings has gained importance due to recent judgments passed byHon'ble Supreme Court of India and Hon'ble High Courts of various states. The Government of India has alsowidened the scope of Pension with amendments in National Pension System and Employee's Pension Scheme - 1995.This study traces the evolution of pension systems in Public Sector Undertakings to recent amendments w.r.t. pensionas introduced by Government of India and the Supreme Court rulings on EPS-95 as well as the proposed Code onSocial Security.

Dr. Subir Bikas Mitra, Executive Director (Law & HR),GAIL (India) Limited, New Delhi, E-mail : [email protected]. Biswabhushan Behera, Chief Manager (HR), GAIL (India) Limited, New Delhi, E-mail : [email protected]

1. Introduction:

Pension, in general sense, is a lifetime post-retirementincome security provided to the retiree for as longas he/she is alive. However, over a period of time,the scope has been widened to include social securityto dependents as well. It is a retirement plan thatprovides periodic income after retirement to thepensioner or after death of pensioner to his /hernominee under predefined legal or contractual terms.It is a fund into which money is added during theemployment of the employee and from which periodicpayment is drawn to support the person/nominee postretirement / death.

There are mainly two forms of financing the pensionbenefits (i) the Pay-as-you-go (PAYG) system, whichis an unfunded scheme in which the current workersmeet the bill of the retiree's payments (ii) a fundedscheme wherein workers save a part of their currentincome to earn their future retirement income.

Pension generally serves two essential purposes (i)pensioner is provided an income in his retirementlife when he/she is no longer working in exchangefor contributions into a pension scheme when he/shewas working (ii)pensioner is provided the benefit of

insurance, especially in respect of longevity risk -the uncertainty attached to an individual's life.

The pension plan requires the employer to makecontribution into a pool of funds which is investedon behalf of the employees and the earnings on suchinvestment generate income to the employees on hisretirement. In addition to the employer's contribution,some pension plans also provides for voluntarycontribution from the employee or allows employeeto contribute part of his current income from wagesinto the investment plan to fund his retirement.

Besides employer, the Government, labour unionsand other organizations may fund pensions. Whenpension contributions from various employers, unionsand other organizations are pooled, run by financialintermediary and managed professionally by fundmanagers it is commonly referred a Pension Fund.Earnings on such investment portfolios are eithertax-deferred or tax-exempt and extend tax benefit toboth employer and employees.

2. Evolution of Pension Systems in India:

Evidence of the old-age support systems for peopleserving the state in India dates back to the 3rd century



BC. According to Sukraniti, a king had to pay halfof the wages for people who had completed 40 yearsof service. The concept of pension was introducedin India by the British after the Indian Struggle forIndependence in 1857 in line with the British PensionScheme. Later this Pension System of 1857 wasreplaced by Pension Act, 1871 which provided forregular increase in Pension to compensate theincreasing prices and the concept of DearnessAllowance was introduced.

In 1881, the Royal Commission on CivilEstablishment was introduced for extending pension/ retirement benefits to Indian members of the civilservice. Civil servants were given a choice by thepassing of the Government of India Act (1919), forpeople employed before 1st January 1920 to retireon a pension proportionate to their service. Based onthe recommendations of the Royal Commission, thepractice of contributions by the beneficiaries wascancelled, and an Indian Civil Services ProvidentFund for non-Europeans was introduced. Later furtherprovisions were introduced through Government ofIndia Acts 1935.

Post-Independence, the Government of India extendedthe retirement pension to all its civil servants /government employees wherein retirement benefitswere provided to the civil servants as a kind ofentitlement for their services rendered during theirtenure as government servants. The pension, as perthe earlier / old pension system, to governmentemployees is also subject to enhancement to matchinflation.

The concept of retirement benefit was consolidatedand expanded to provide retirement benefits to theentire working population of the private and publicsectors. Later, several pension funds were set up toextend coverage to the private sector and PublicSector employees which led to the current majorretirement schemes in India including ProvidentFund, Gratuity and Pension Plans which aremandatory, occupation based, earning related andhave embedded insurance coverage against disabilityand death.

3. Pension for employees of Public SectorsUndertakings:

Since inception of Public Sector Undertakings (PSUs),the social security of employees, like any other

workers of organized sector, was ensured only throughstatutory provisions under Employees' PensionScheme, 1995 of Employees' Provident Funds &Miscellaneous Provisions Act, 1952.

Initially there was no system of any non-statutorypension by employer for the employees of PSUs;subsequently, few PSUs introduced their own PensionSystem to ensure social security as a welfare measure.However, unlike the pension provided to GovernmentEmployees, the Pension System in PSUs werevoluntary and self-contributory SuperannuationBenefit Fund Scheme (SBF) operated throughSuperannuation Benefit Fund Trust formed under theIndian Trust Act, in the form of a Defined BenefitSchemes (DBS).

(i) Superannuation Benefit Fund (SBF) pensionplan:

The SBF pension plan is an arrangement toprovide an income to the employee after theirretirement. It requires both employer andemployee to contribute money to a fund toreceive pension benefits upon retirement. It alsoallows tax-free accumulation for later use asretirement income.

In case of the Defined Benefit Schemes of SBF,the pension benefit upon retirement is guaranteedirrespective of the performance of theinvestment. The final pension benefit in suchcase is determined by a pre-defined formulabased on the earning/ compensation, age andnumber of years of service of the employee. Ifthe assets of the pension plan are not sufficient,the employer is liable for the remainder or theshortfall.

The SBF pension in PSUs was recognized byGovernment of India w.e.f. 01.01.2007,consequent upon the issue of DPE Guidelinesdated 26.11.2008 and 02.04.2009 w.r.t. PayRevision. In line with the said DPE Guidelines,the then existing SBF Scheme in Public SectorCompanies were converted from Defined BenefitSchemes (DBS) to Defined Contribution Scheme(DCS), wherein contribution out of 30 % ofBasic plus Dearness Allowance after adjustingthe contribution made towards PF, Gratuity &PRMS of the employees is deposited in the SBFFund of each employee.


NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT 17NATIONAL INSTITUTE OF PERSONNEL MANAGEMENT

In case of the Defined Contribution Scheme,the employer makes specific plan contributionfor the worker. The final pension benefit in suchcase is determined by the performance of theinvestment. The liability of the employer ceasesafter the employer makes the contribution tothe fund.

Now, it has been mandated by DPE that PSUsmay comply with the statutory provisions laiddown under the Pension Fund RegulatoryDevelopment Authority Act, 2013 for financialsecurity of their employees. Accordingly, PublicSectors are adopting National Pension System(NPS) to extend the benefit of NPS to all theiremployees.

(ii) National Pension System (NPS):

The National Pension System (NPS) is aGovernment of India promoted, voluntaryDefined Contribution Low Cost PensionScheme, Regulated by Pension Fund RegulatoryDevelopment Authority (PFRDA) under thePension Fund Regulatory DevelopmentAuthority Act, 2013 is managed by NPS Boardof Trustees under PFRDA Act, 2013. It startedwith the decision of the Government of Indiato stop the earlier Old Pension Scheme for allits employees who joined after 1 January 2004.Subsequently, the NPS was extended with effectfrom 1st May 2009 and opened to all sectionson a voluntary basis.

Unlike traditional financial products where allthe functions (sales, operations, service, fundmanagement, depository) are done by onecompany, NPS follows an unbundledarchitecture where each step of the value chainhas been made separated from the other. Thisallows the customer to mix and match hisproviders of services like Point of Presence(POP), Central Record Keeping Agency (CRA)and Pension Fund Manager (PFM) etc throughthe value chain, picking the best-suited option.The benefit of such a pension regime is likelyto foster aggregate rate of savings and acceleratecapital market development.

The feature of NPS that makes it lucrative toemployees of PSUs are (i) Portable - Retirementaccount (with unique PRAN) that may be

retained across employers, location etc. (ii)Simple - Standard product designed by PFRDA(iii) Flexible - Choice of fund managers,investment options, annuity plans, annuityservice providers and Point of Presence (POPs)(iv) Economical - Lowest cost investmentproduct currently available in the market (v)Unique tax benefits, (vi) Commutation -subscribers can withdraw upto 60 % of thecorpus in lumpsum and use the remainingcorpus to buy an annuity to secure a regularincome after retirement, (vii) Annuity Options- a bouquet of options for purchase annuity fromavailable approved annuity providers and (v)Deferment Option - flexibility to subscribersfor a delayed decision on purchase of annuityand commutation.

At present, PSUs like GAIL, HPCL, REC andPFC have implemented NPS and other PSUsare in various stages of implementation of NPSfor extending the benefit to their employees.

(i) Pension program through Employees'Provident Fund Organization:

The Employees' Provident Fund introducedunder Employees' Provident Funds &Miscellaneous Provisions Act, 1952 (EPF &MP Act) is administered and managed by theCentral Board of Trustees that consists ofrepresentatives from three parties, namely,Government, employers and employees. TheEmployees' Provident Fund Organization(EPFO) assists this board in its activities. EPFOworks under the direct jurisdiction of thegovernment and is managed through the Ministryof Labour and Employment. The provisions ofEPF & MP Act are governed by three Schemes:

1. Employees' Provident Fund Scheme, 1952

2. Employees' Pension Scheme, 1995 (earlierFamily Pension Scheme, 1971)

3. Employees' Deposit Linked InsuranceScheme, 1976

Pension under the EPF & MP Act was initiallyintroduced as Family Pension Scheme 1971(FPS-71) which has provision for only theWidow Pension. Subsequently, the Governmentof India widened the scope and introduced



Employees' Pension Scheme, 1995 (EPS-95)in replacement of FPS-71. The purpose of theEPS-95 is to provide (i) for the employee /member, the superannuating pension, earlypension and permanent total disablementpension and (ii) for beneficiaries of employees/ member the Widow or widower's pension andchildren pension or orphan pension.

For Funding of the EPS-95, an amount equal to8.33% of PF Wage limit (i.e. Rs.15,000/-currently) is pooled into the EPS from theEmployer's contribution w.e.f. 01.09.2014 till58 years of age and the Central Governmentalso contributes at 1.16 % of the pay of themember.

Minimum 10 years eligible service will entitlefor member pension. The aggregate of actualservice and the 'past service' shall be treated aseligible service.

Issue of EPS-95 controversy, impact of recentSupreme Court Ruling on EPS-95 in PublicSector Undertaking and its status:

Consequent upon introduction of EPS-95 byGovernment of India in 1995, differentstakeholders including the employees of bigestablishments, Public Sector undertakings,various Trade Unions and Political Partiesopposed this Scheme. Many Establishments,Employees Associations and others approachedvarious High Courts against implementation ofthe Employees' Pension Scheme, 1995.

Several rounds of negotiations were initiatedby the Government for acceptance of Employees'Pension Scheme by the opposing parties. Inorder to have wider acceptance by variousshareholders, following provisions were addedin the Employees' Pension Scheme, 1995 videGSR 134 dated 28.02.1996 as majoramendments within three months of introductionof the main scheme:

(i) Option to contribute on higher wagesexceeding the statutory limit (Para - 11)

(ii) Option for Commutation (Para 12 A)

(iii) Option for Return of Capital (Para 13)

After introduction of Employees' Pension

Scheme, 1995 various petitions againstintroduction of Employees' Pension Scheme,1995 were filed in different High Courts andall cases were transferred to Hon'ble SupremeCourt through Transfer Petition. The Hon'bleSupreme Court in the year 2003 decided thepending matters by upholding the validity ofthe Employees' Pension Scheme, 1995.Sincethe matter was pending in Hon'ble SupremeCourt up to 2003 and some interim orders werealso passed during this period, many of theEmployees who had not opted to becomemembers of Pension Scheme were givenopportunity to become members of the PensionScheme and also to contribute on higher wagesas per the provisions of Para 11(3) of EmployeesPension Scheme, 1995. Subsequently,considering the financial viability of theEmployees' Pension Scheme, 1995 based onvarious actuarial reports till then, the opportunityfor giving option to contribute on higher wageson becoming member of the Employees' PensionScheme was stopped in the year 2004.

A clarificatory circular discontinuing acceptanceof contributions on higher wage in Pension Fundwas also issued in November 2006.Thecontroversy began as EPFO started referring tothis circular as guidelines for regulating thecases under the said proviso to para 11(3) ofEmployees' Pension Scheme, 1995 linking theissue to para 26 (6) of the EPF Scheme, 1952which led the field offices to put an embargoon all such cases. Further, the provisions relatingto option for commutation and option for returnof capital were deleted with effect from26.09.2008 by Gazette Notification No. GSR.688(E) dated 26.09.2008. The scheme wasamended in 2014 by omitting the proviso toclause 11 (3) by G.S.R. No.609 (E) dated22.08.2014 (with effect from 01.09.2014). Theamendments w.e.f. 01.09.2014 are -

i) Redrafting of the entire para 11 including deletingthe proviso providing a rider,

ii) Providing for a fresh option within 6 months,to continue EPS contribution on higher salarywho already opted and paying contribution onhigher salary,

iii) Barring new employees to become EPS member



who are drawing salary more than Rs. 15,000p.m.

During the period 2004 to 2014 many caseswere filed in various forums and High Courts,praying for payment of pension on higher wagesby allowing contributing on higher wages underthe pension scheme. On being aggrieved by theorders of the High Courts, EPFO appealed tothe Hon'ble Supreme Court wherein thedepartment filed 8 SLPs in series against theorders of Hon'ble Kerala High Court. The saidSLPs were dismissed by the Hon'ble SupremeCourt vide order dated 31.03.2016 (7 - SLPs)and dated 12.07.2016 (1?SLP) by bunching theSLPs.

After disposal of the SLPs, various Writs werefiled and orders allowing option to contributeon higher wages retrospectively were issued.Two SLPs were filed by employees of M/sHimachal Pradesh Tourism DevelopmentCorporation against the orders of the DivisionBench of Hon'ble High Court of HimachalPradesh disallowing the option for contributingto Pension Fund on higher wage. The Hon'bleSupreme Court disposed off the aforesaid 2SLPs vide order dated 04.10.2016 (R.C. GuptaVs RPFC Shimla) allowing the petitions. In thismatter of R.C. Gupta Vs. RPFC Shimla theHon'ble Supreme Court vide its judgment dated04.10.2016, decided the matter of pensionarybenefit on higher wages with detailed orderexamining the provisions of the EmployeesProvident Fund Scheme, 1952 and Employees'Pension Scheme, 1995 and also citing the orderspassed by the Apex Court for dismissal of SLPsfiled by EPFO with reference to the orderspassed by Hon'ble Kerala High Court.

Officers in-charge of all filed offices weredirected vide EPFO on 23.03.2017 to takenecessary action in accordance with the orderof the Hon'ble Supreme Court in SLPNo.33032?33033 of 2015 as approved by theGovernment and as per the provisions of theEPF & MP Act, 1952 and Schemes framed thereunder. The said circular was issued to "allowmembers of EPS, 1995 the benefit of the actualsalary in the Pension Fund exceeding wageslimit of either Rs. 5000/- or Rs. 6500/- permonth from the effective date respectively as

per Hon'ble Supreme Court's Judgment in SLPNo. 33032-33033/2015". Subsequent to issueof the EPFO circular dated 23.03.2017, querieswere raised by various Regional Office to EPFOHQ.

A clarification was issued by EPFO on31.05.2017 that the provisions mentioned bythe Hon'ble Supreme Court in its order dated04.10.2016 applied only to the employees ofun-exempted establishments (thereby barringall exempted employees from the benefitsavailable after the SC judgment), whose bothProvident Fund and Pension contributions werebeing deposited by the employer in EPFOaccount. EPFO field offices started denying toaccept EPS contribution on a higher salary.

The Hon'ble Supreme Court passed an interimorder dated 15.12.2017 wherein it requested theother High Courts to await for the outcome ofthe order passed by the High Court of Keralain the cases reserved for judgment and onlythereafter to proceed further in the matter andthat too subject to further orders to be passedby the Hon'ble Supreme Court in these matters.

Hon'ble High Court of Kerala, vide its orderdated 12.10.2018 (WP(C). No. 13120 of 2015)allowed the following:

(i) The Employee's Pension (Amendment) Scheme,2014 brought into force by Notification No.GSR. 609(E) dated 22.8.2014 evidenced byExt.P8 in W.P.(C) No. 13120 of 2015 is setaside.

(ii) All consequential orders and proceedings issuedby the Provident Fund authorities/respondentson the basis of the impugned amendments shallalso stand set aside.

(iii) The various proceedings issued by theEmployees Provident Fund Organizationdeclining to grant opportunities to the petitionersto exercise a joint option along with otheremployees to remit contributions to theEmployees' Pension Scheme on the basis of theactual salaries drawn by them are set aside.

(iv) The employees shall be entitled to exercise theoption stipulated by paragraph 26 of the EPFScheme without being restricted in doing so by



the insistence on a date.

In the said order the Hon'ble High Court setaside the 2014 amendment calling it arbitraryand unsustainable, and reinstated the old systemof calculating the pensionable salary as theaverage of the last one year's monthly salary.Further, EPFO was directed to give pension toall retiring employees on the basis of their fullsalary, rather than capping the figure on whichcontribution is calculated at a maximum of Rs15,000 per month.

Hon'ble Supreme Court, vide its order dated01.04.2019 dismissed the SLP filed by EPFOagainst the Hon'ble High Court of Kerala andpaved the higher pension to all members.

Thirty Two writ petitions filed by ex-employeesof various exempted establishments on the sameissue has also been referred to Hon'ble SupremeCourt and are pending for final disposal.

Till the matter is finally decided by Hon'bleSupreme Court, it seems quite logical that EPFOat least revise the EPS-95 pension as per decisionof Hon'ble Kerala High Court and Hon'bleSupreme Court with the original formula ofpensionable service i.e. 12 months average payconsidering PF wage ceiling of Rs. 15,000/-but noting is being done by EPFO in spite ofrequests from various exempted establishments.

4. Code on Social Security, 2019

Recently, the Ministry of Labour and Employment,Government of India has circulated a preliminarydraft of the Code on Social Security, 2019. The DraftCode proposes to simplify, amalgamate, rationalizeand replace (i) The Employees' Compensation Act,1923; (ii) The Employees' State Insurance Act, 1948;(iii) The Employees' Provident Fund andMiscellaneous Provisions Act, 1952; (iv) TheMaternity Benefit Act, 1961; (v) The Payment ofGratuity Act, 1972; (vi) The Cine Workers WelfareFund Act, 1981; (vii) The Building and OtherConstruction Workers Cess Act, 1996; and (viii) TheUnorganized Workers' Social Security Act, 2008.

Under the Code, Employer's Contribution towardsPF is mandated at 12% and it also states that employeemay have option to join NPS while providing foroption to join back schemes framed under this Codesuch as the Provident Fund Scheme, Pension Schemeand Insurance Scheme.

References:

i. Pensioner's Portal of Government of India availableat https://pensionersportal.gov.in/Mscheme.asp

ii. Pension Fund Regulatory and DevelopmentAuthority (PFRDA) website available athttps://www.pfrda.org.in/

iii. National Portal of India available athttps://www.india.gov.in

iv. National Pension System Trust (NPS Trust)w e b s i t e a v a i l a b l e a thttps://enps.nsdl.com/eNPS/NationalPensionSystem.html

v. Employees' Provident Fund Organization(EPFO)website available at https://www.epfindia.gov.in

vi. Department of Public Enterprise (DPE) guidelinesdated 26.11.2008 & 2.4.2009 relating to payrevision of Board level & below Board Executives

vii. Order dated 12.10.2018 of Hon'ble High Court ofKerala on WP(C). No. 13120 of 2015

viii. Order dated 01.04.2019 of Hon'ble Supreme Courton SLP filed by EPFO against the order dated12.10.2018 of Hon'ble High Court of Kerala

ix. Article 'Central civil servant pension payments inIndia: Issues and concerns' dated 12.08. 2009 byKarnam Gayithri published in Pensions: AnInternational Journal

x. Article 'India: Supreme Court's Ruling on PensionScheme' published in http://www.mondaq.com

xi. Article 'Supreme Court ruling on higher pensionbenefit to employees under the Employees' PensionScheme, 1995' dated 25.04.2019 published byKPMG



Effect of Diversity on Job Perspectives inSelected Sectors of Indian Economy

Ms. Puvvada Devaki Devi

Mr. Gudivada Venkat Rao

AbstractDiversity means variations in social, economic, demographic and employment factors. The diversity of workforce,social and demographic wise is an interesting comparison for study on diversity management. The purpose of theresearch work is to estimate the direction and relationship of identified social, demographic and economic diversityfactors on Job Perspectives viz., Firm and Peers, Job and Life and HRM Systems. The conceptual framework is builton diversity factors Age, Gender, Marital Status, Religion, Nativity, Caste and Salary.

The study is conducted on a random sample of 928 employees, spread across five industrial and service sectors inPublic Sector Steel Plant, two Private Sector Steel Plants, BPO, Public Sector IT Firm and Private Sector IT Firm.The sample includes executives and non-executives within the respective industrial employments. The Cronbach'salpha values for all the 176 items of Job Perspective factors are in the range of 0.938 to 0.770.

The Perception of Peers has inverse impact by age diversity. The age, religion and caste diversity on Job and Lifeis moving in reverse direction. The age and religion diversity presents similar trend on HRM systems. The age,religion and caste diversity are major diverse variables on HRM systems, Job and Life and Perception on Firm andPeers. The diversity factors in the Indian context on HRM factors, Job and Life and Firm and Peers is the reflectionof Age, Religion and Caste.

Ms. Puvvada Devaki Devi, Professor (Rtd), Department of Human Resource Management, Andhra University, VisakhapatnamE-mail : [email protected].

Mr. Gudivada Venkat Rao, Assistant Professor, Department of Human Resource Management, Dr. L.Bullayya P.G.College, VisakhapatnamE-mail : [email protected].

Introduction

Diversity as a concept is the distinguishable variationsor differences based on criteria (Shen et al., 2009) social,economic, demographic and employment. The humanresource management is a focused subject withmultidisciplinary approach based on Behavioral sciencesand Management. The advance technologies in variousforms have brought sea changes in the nature, conceptand scope of Human Resource Management (HRM), akey area of Management. The human resourcemanagement in practice is evolutionary and revolutionarywith the advancement in technology. And it is said, thepace of technology movement is fastest in this decadein comparison with previous decades. The innovationin technology processes has made the role of HRM morecomplex (Venkat, G, 2018) and comprehensive.

The study of Wambui et al. (2013) on diversity in HRMpractices points out that social and demographic factors

evidence increase in competitive strength of anyorganization. It is also true that the demographic andsocial profile of the workforce, in key sectors of theeconomy, is not far stretched to emerging changes in thetechnology. In another study, demographic diversitydivide is found as the advantage for the emerging countrylike India (Meena & Vanka, 2013). The employment ofthe workforce across the sectors is believed to be skewedin favor of emerging technologies. About 45 percent ofthe workforce would be from millennial age group(Mukerjee, 2019). The diversity of workforce, socialand demographic, is an interesting comparison for studyon diversity management. Fang Lee Cooke and DebiSaini (2010) and Subhash C. Kundu et al. (2015)investigate on diversity in HRM practices and revealdifferences in perception of Indian employees on criteriarelated to harassment, flexible hours, merit and disable



employees. The HRM factors are strategic integratorsboth horizontally and vertically (Subhash C. Kundu etal, 2015). Some other investigations find significantrelationship between a firm's HRM system andperformance (Florian Kunze et al,2013) with diversityin age (Emma Parry and Jean McCarthy,2017),professional tenure and expertise (Lu, Chia-Mei & Chenet al, 2015).The social peer pressure influences the social incentivesmore than monetary incentives (Kandel and Lazear,1992) and peer effect is high within the upper level ofthe hierarchy (Lucas, 1988; Marshall, 1890). However,wages, productivity and skill levels show minor positiveeffect by peers (Thomas Cornelissen et al, 2013). Thescattered migrated families have impact on workplacelifestyles and contribute to the social, economic andpolitical environment (Goulbourne, Reynolds, Solomos,& Zontini, 2010). The non-natives' or migratory families'work-life balance is observed as research area for humanresource researchers to understand work-life management(EunaeChoa and Tammy D.Allenb, 2019).

The organizational culture supported by human resourcemanagement practices drive the diversity managementpractices. Subhash C. Kundu et al (2015) to derivepositive relationship between HRM diversity practices(recruitment, selection, training, support groups andaudit), performance and organizational levels (individual,group and organizational). Kerstin A. Aumann, CheriOstroff (2006) explains that the HRM practices acrosscultural contexts depend on life values derived fromsociety and heredity.

Some researchers have observed significant influencein limiting discrimination with HR diversity management(Oualid Abidi et. al, 2017). The caste (Meena K, 2015;Rana Haq, 2012) and the religion (Pramila Rao, 2015)are identified as major diversity factors impactingworkplace in India. While the above studies are only onHRM practices, the present study focuses on componentsof Firm and Peers, Job and Life and also HRM Systems.

The framework of the present study measures the impactof the selected socio-demographic and employmentfactors on the three Job Perspective factors viz. Firmand Peers, Job and Life and HRM Systems. Thepre-determined grouping of the three factors is donewith the following criteria (Table 1).

Methodology

The conceptual framework is built on diversity of socio-demographic and economic issues and Job Perspectives.The hypotheses tested in this work are:

H01: The socio-demographic and economic diversityfactors have no impact on Firm and Peer.

H02 : The socio-demographic and economic diversityfactors have no impact on Job and Life.

H03: The socio-demographic and economic diversityfactors have no impact on HRM Systems.

The study is conducted on a stratified random sampleof 928 employees spread across five industrialemployments in a Public sector steel plant, two Privatesector steel plants, BPO, Public Sector IT Firm andPrivate Sector IT Firm. The sample is 4.3 percent of thetotal population 21,650 of the universe. The sampleincludes executives, non-executives and workers withinthe respective industrial employments.

The socio-demographic and economic issues consideredin the study are Age, Gender, Marital Status, Religion,Nativity, Caste, Education and Salary. The pre-determinedjob perception factors viz Firm and Peers, Job and Lifeand HRM Systems are evaluated to find diversity impact.The questions are framed in first person to estimate theperception of the employees towards the above threefactors viz. Firm and Peers, Job and Life and HRMSystems. The questionnaire is prepared in both hard andsoft formats and administered on the selected sampleduring 2016-2017. The analysis finds the impact of socio-demographic and economic issues on the organizationalfactors in frame of objectives. The data are processedwith SPSS and R to calculate mean, standard deviation,factor analysis for factor loadings and regression statistics.The Cronbach's alpha values (Table 2) for all the 176items of Job Perspective factors are in the range of 0.938to 0.770 except My Time Management. The results arewithin the acceptable limits of reliability (<=0.600).



The factor loadings are calculated to examine the strengthof the factors formulated for the study. Based on results,analysis on My Time Management is discarded. ThePrincipal Component Analysis is applied to extract factor

loadings. The values range from 0.373 to 0.813 (Table3). The KMO and Bartlett's Test of Sphericity (Table 4)is significant and it is found appropriate to apply factoranalysis.



Based on similarity of concepts the factors arepredetermined into three components.

1. Component Y1: Perception towards Firm and Peers:My Company, My Management, My Department,My Supervisor and My Co-workers.

2. Component Y2: Perception towards Job and Life:My Job, My Responsibility, My Performance, MyValues and My Time Management.

3. Component Y3: Perception towards HRM Systems:Recruitment, Working Conditions, Safety,Performance System, Appraisal System,Communication, Training and Advancement.

Results and Discussion

Socio-Demographic and Economic Related Issues

The Mean Age of the respondents is 35.14 years(Table5). The mean ages of the five Organizations presents asharp contrast with highest and lowest being Publicsector steel plant (44.86 yrs) and BPO (26.81yrs). Themean age (29.80 yrs) is surprisingly low in case ofPublic sector IT Firm also.The gender equation is highlyskewed is favor of male with 2.85:1 ratio followed byhighest in public sector steel plant (8.68:1),private sectorsteel plant(6.58:1),public sector IT firm(2:1),privatesector IT firm(1.45:1) and BPO(1.26:1). The maritalstatus comparison between steel manufacturing and ITsector presents more unmarried in IT (60.25 percent)and BPO sector (83.8 percent). The religion Hinduforms the major group in steel, IT and BPO sector. Theinteresting inference is Muslims are low in BPO and IT

sector than in Steel sector. The inference is Christians'find employment in BPO's as they are better in English.

The caste distribution is even in all sectors except inPrivate Sector IT Firm with low ST representation (4.7percent). The other sectors are not showing any unusualcaste distribution.The data on nativity indicatepredominance of urban habitanats (71.9 percent)incomparison to rural. Those who migrated from ruralareas form one-fourth and has presence in public sectorand private sector IT firms. The majority across the fivesectors i.e. public sector steel plant, private sector steelplants,BPO,public sector IT firm and private sector ITfirm have technical qualifications. The mean salary forthe whole sample is Rs. 69717.43, with BPO sectorrecording mean salary level of Rs.31066.60.

The average family size for the reported sample is 2.85per family. The BPO employees are predominantly fromjoint family structure, their average age is low and theyare mostly unmarried, therefore they live with parentsin joint families.

Employment Related Issues

The majority of public sector employees (55.2 percent)and BPO employees (47.7 percent) have own houses.The employees of Public Sector Steel Plant havepermanent employment status (91.7 percent) whereasfor BPO (95.3 percent) and private sector IT firm (80percent) most of them are temporary or off rollemployment. The change in designation is estimated tofind the change in position in the Organisation and itwas highest in Associate (54.4-14.3 =40.1 percent).



Table 5: Socio-Demographic and Economic Factors

The promotions in a career are analyzed and have anaverage of three promotions for majority (38.9 percent)of the employees across the different sectors. The steelplants (33.6 percent) and private sector IT firm (50.4percent) employees have an average of three promotions.The trend is same during his career with the presentemployer. The commutation to work as a criterionpresents majority (61.4 percent) travel less than 10 kms

except in case BPO who travel above 15 kms (49.3present) and public sector steel plants( 37.2 percent)who travel less than 5 kms. The BPO and IT firms arelocated at satellite towns and it requires traveling distance.The public and private steel plants have industrialtownships attached to factory premises minimizing thetravel time.



Table 6: Means of Job Perspectives

Job Perspectives Factors Variations:

The perceptions of the employees on the factors areevaluated with mean scores (Table 6). The mean analysisfor all the companies presents positive perception. Theinter-factor analysis for My Company shows that thevalues range from 78.0 per cent to 58.5 per cent. Thefactor most preferred is that the firm motivates them towork in team. The least preferred is that the supervisors,managers and everyone speak with one voice on firm'spolicies, programmes and the calculated Mean is 25.86and Standard Deviation is 5.79. The inter-factorpercentage for My Management range between 67.1 percent and 57.6 per cent. The most preferred factor isobserved as that management assists them to adapt tochanging situations through innovation and creativityand the factor favored least is that the management raisesfunds to adjust to the new technical issues. The calculatedMean is 18.08 and Standard Deviation is 4.31.

The analysis of data on My Department indicates that22.2 per cent rank their department's role as very highand 48.0 per cent as high. It can be said that most of theemployees (70.2%) consider their department as verycooperative in their performance. Those who have noopinion are 14.7 per cent and rank their department'srole as low form 11.1 per cent and very low form 3.8

per cent. The calculated Mean is 14.95 and StandardDeviation is 3.52. The values for the individual factorsof My Supervisor range between 75.3 per cent and 65.1per cent. These factors are noted as that supervisor isalways positive to take up suggestions and the leastpreferred statement is that company always realizes thatcareer development from within is better. The calculatedMean is 26.45 and Standard Deviation is 6.49.

The inter-factor analysis of My Co-Worker shows thatthe values of the factors range between 78.3 per centand 55.9 per cent. The factors favored most almostequally are a) we work together and relationships aregood (78.3%) and b) we can take help from others if wework in a team (78.2%). The factor least preferred isthat co-workers are willing to work in new location ifneeded. The calculated mean is 38.24 and StandardDeviation is 8.31. The values of the factors of My Jobare higher than the factors of other aspects and in range80.3 percent to 78.2 per cent. The most preferred factoris that the employee assists co-workers when need arisesand the least preferred is that he will step in for co-workers if situation demands. Next favored is that healways tries to learn and improve. The calculated Meanis 15.98 and Standard Deviation is 4.28.



The inter-factor analysis of My Responsibility indicatesthat the values range between 81.7 per cent and 59.0 percent. These factors are that the employee is responsibleto achieve his specific targets and the least favored islow performing employees are held accountable. TheMean is 19.94 and Standard Deviation is 4.60. Thevalues on Recruitment range from 72.4 per cent to 55.7per cent. The most preferred is that the company providesrequired information at the time of joining without anyambiguity and the factor favored by the smallest groupis that the time taken in recruitment cycle is reasonable.The calculated Mean is 18.36 andStandard Deviation is 4.45.

The values of the individual factors of WorkingConditions range from 74.3 per cent to 41.4 per cent.The factor most favored is that the building is rightlyventilated with sufficient height and air circulation. Theleast preferred one is that family meetings and picnicsare common. The calculated Mean is 54.30 and StandardDeviation is 12.27. Inter factor analysis of Safety showsthat the highest per cent of the employees (74.2%) favorsthe statement that the department feels safety as the mostimportant and the least group of 51.4 per cent reportsthat employees are discouraged from taking safety risks.The Calculated Mean is 47.07 and Standard Deviation11.47.

The values of Performance System range between 78.3per cent and 62.9 per cent. The factor most preferredis that employee involves himself with full capacity inhis job. The least favored statement is that teams arerewarded for higher performance. The Calculated Meanis 36.98 and Standard Deviation is 8.57. The values forindividual statements of My Performance vary between80.6 per cent and 55.8 per cent. The statement preferredmost is effectiveness at work and the factor consideredleast is dependence on others. The Calculated Mean is46.58 and Standard Deviation is 4.28.

The statements of My Role were assessed for identifyingthe causes for role conflict. The values range between49.1 per cent and 36.8 per cent. The largest groupconveys that office requires him to be available foremergency work round the clock and the least groupreveals that he has to go out on personal or friends workduring office hours. The Calculated Mean is 17.75 andStandard Deviation is 6.07. The data on My Valuesassessed by the employees indicate these ranges from

77.2 per cent to 48.2 per cent. The value favored by thelargest group is that one should aim to be appreciatedand admired for knowledge and skills. The least groupswhich are almost similar prefer either one should valuemoney more than work (48.2%) or one can entertainfriends and relatives during working hours (48.3%). TheCalculated Mean is 63.00 and Standard Deviation is14.60.

The values of the statements on appraisal system rangefrom 73.4 per cent to 58.1 per cent; the largest groupprefers that to say they know the targets sit forperformance and the least group favors the statementthat the method of appraisal used is fair. The next leastgroup (59.5%) conveys that timing of appraisal systemis accurate. The Calculated Mean 21.90 and StandardDeviation is 5.05. The values range between 68.0 percent and 62.4 per cent. It may be said that all thestatements are favored almost equally. However, thelargest group prefers that the superiors are receptive toall communication about risk including bad news andthe least group conveys that firm is interested to makethe employees realize importance of managing risk. TheCalculated Mean is 25.64 and Standard Deviation is6.03.

The inter-face analysis indicates that values for stressrange from 69.5 per cent to 45.6 per cent. The statementpreferred most is that the employee has relaxed positiveoutlook towards work and life. The factor favored bythe least group is that the wellness programme is effectivein controlling stress at all times and for all cadres. TheCalculated Mean is 42.30 and Standard Deviation is9.01.

Diversity Factors Impact on Job Perspectives:

The multi-regression analysis of the socio-demographic,employment factors on first component Firm and Peerswith beta values are positive except age, religion andcaste (Table 7). The equation is fit as the F-value issignificant. The explanation power of the equation isR2 : .03605516 . The equation construct follows

Y1 = 118.344 + (-0.082) Age + (0.040) Gender + (0.174)Marital Status + (0.013) Religion + (0.030) Caste +(0.027) Nativity + (0.006) Education + (0.081) BasicSalary

Table 7: Regression analysis on First Component: Firm and Peers



The second component (Job and Life) as dependent on socio-demographic and employment factors is fit into multipleregression equation (Table 8). The Beta intercept is 204.122. The equation is fit as the F-value is significant withthe explanatory power (R2 ) of 0.0268. The Age, Religion and Caste are impacting in reverse direction. The regressionequation with Y2 as dependent variable follows

Y2 = 204.122 + (-0.029) Age + (0.036) Gender + (0.142 ) Martial Status + (-0.019) Religion + (-0.014)Caste + (0.024) Nativity + (0.010 ) Education + (0.077 ) Basic Salary

Table 8: Regression analysis on Second Component:

** Significant @ 1% Level, * Significant @ 5% Level


Table 9: Regression analysis on Third Component:



The regression equation with third component (HRMSystems) as dependent factor on socio-demographic andemployment factors is constructed (Table 9). The equationis fit as the F-value is significant with the explanatorypower (R2 ) of 0.066. The Age and Religion were moving

in reverse direction and the equation is

Y3 = 237.878 + (-0.005) Age + (0.079) Gender +(0.193)Marital Status + (-0.018) Religion +(0.044) Caste +(0.029) Nativity + (0.024) Education + (0.095) BasicSalary.


The Perception of Peers has inverse impact by agediversity. The age, religion and caste diversity on Joband Life is moving in reverse direction. The age andreligion diversity presents similar trend on HRM systems.The age, religion and caste diversity are major diversevariables on HRM systems, Job and Life and Perceptionon Firm and Peers. The age diversity in the contemporaryperiod has generational gap with more generation (20-30 years) in the IT and ITES sector. The average age is34 years across all the sectors under study, the perceptionstowards the three components have inverse relationshipin comparison with the other diversity factors. The newgeneration workers are different at work with respect tobroad patterns of engagement (Mukherjee, 2019). Theage diversity due to generational difference is likely keyfactor for future HRM practices. In the Indian context,

religion and caste is not positively associated. The workstructure and flexibility attracts diverse workforce (VidhuShekar, 2019), the study upholds in the case of agediversity.

The religion and caste are surprise elements on their rolein impacting the HRM practices in India. Theoversensitive reaction of the macro policy at the nationallevel is the reason for identification with the above twovariables. The other Diversity factors Gender, MaritalStatus, Nativity, Education and Basic Salary are directlyimpacting Firm and Values, Job and Life and HRMsystems. The three hypotheses are not proved in thisresearch and therefore a relationship exists between thesocio-economic and demographic variables with HRMSystems, Job and Life and Firm and Peers.



Conclusion:

The diversity factors in the Indian context effecting onHRM Systems, Job and Life and Firm and Peers arereflected by Age, Religion and Caste. In India thedemographic divide of the contemporary workforce isa factor which impacts HRM factors, Job and Life andFirm and Peers' The HRM strategies are to be focusedon the age diversity. The consciousness towards religionand caste has not been completely wiped out from theworkplace and is a point for attention.

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Skilling Millennials to remain Entrepreneurialthrough New Age Education

Dr. Purushottam Bung

Abstract

The workforce of today, in the age group of 20-35, whom we call Millennials share a unique composition ofcharacteristics VIZ; attitudes, behavior, values, beliefs and way of life. They are different from the characteristicsof earlier generations.

Under this context it is important to understand their (millennials) mindset, needs and expectations so that we canalign and adapt our education policy and practices to meet their requirements (physical, mental, emotional andcultural).

Attempt has been made in this paper to discuss the implications of this paradigm shift on education which has toreorient with a strong emphasis on skilling - reskilling - upskilling with an entrepreneurial mindset than just bombardingthe learners with information, which we call as New Age Education.

Dr. Purushottam Bung, Professor and Director, R.V. Institute of Management, Bangalore, e-mail : [email protected]

Introduction

Millennials have been shaped by the forces ofglobalization, making the society increasingly connectedand interdependent in terms of economic integration,information exchange, cultural diffusions and travel. Asa result, Millennials operate in environments that notonly integrate vertically the multiple generations, butalso integrate horizontally individuals across nationaland cultural boundaries.

Whereas earlier generations of the workforce,characterized by the following, is quite contradictory tothat of Millennials;

1. Conservative in their thoughts and actions

2. Believe in remaining focused on one thing at a time

3. Individualistic as remaining competitive is moreimportant

4. Inclined to work in hierarchical kind of environment

5. Conventional in their approach which is rule based

6. Risk avoiding or risk neutral behavior

7. Little scared of technological advancements

8. Believe that knowledge is supreme, skill is secondary

Under such circumstances, i.e. when there lies a hugegap in how these two generations of the workforce think,believe and act, it becomes important to understand thenewer generation and make required changes in the waywe educate them so that smoother transition can be madeto meet the requirements of newer generation.

Current Scenario

Millennials - the fascinating generation, most educatedone that dominates todays workforce (estimated at 75%of the global workforce by 2025) are characterized bythe following attributes;

1. Fascinated by new technologies (computers andinternet are part of life)

2. Believe that "It's cool to be smart"

3. Are diverse racially and ethnically and henceembrace inclusivity



4. Gravitate towards group activity and collaboration

5. Believe that doing is more important than knowing(Having right set of skills is more important thanknowledge)

6. Believe that multitasking is a way of life

7. Believe that staying connected is essential

8. Zero tolerance for delays and expect instantresponses

9. Favor experiential learning (trial and error with awillingness to accept failures) than rule based andlogical approach to learning

Moreover, the Millennials have been shaped by theforces of globalization, making society increasinglyconnected and interdependent in terms of economicintegration, information exchange, cultural diffusionsand travel. As a result, Millennials operate inenvironments that not only integrate vertically themultiple generations, but also integrate horizontallyindividuals across national and cultural boundaries.

How we can bridge the gap?

Given the paradigm shift in the composition(demographic and psychographic) of the futureworkforce, it is important to align and adapt our educationpolicy and practices with the expectations of theMillennials (physical, mental, emotional and cultural)

Attempt has been made in this paper to discuss theimplications of this paradigm shift on education whichhas to reorient with a strong emphasis on skilling -reskilling - upskilling with an entrepreneurial mindsetthan just bombarding the learners with information.

Implications for educators:

Meeting the expectations of the Millennials throughNew Age Education characterized by the followingattributes;

1. Learning has to be experiential, interactive andauthentic. Extensive usage of activity based learning,project based learning, immersive learning,simulations, games, laboratory experiments, etc. to

make the learning experiential, interactive andauthentic.

2. Creating conducive learning environment which isinnovative, personalized, trans-disciplinary andflexible. This calls for a new thought and ideologywhich revolves around students, their interests andcareers that they want to explore. Offering widerange of program options with a never imaginedbouquet of courses (physical, digital, blended, etc.)

3. Focusing on the futuristic skills demanded by theMillennials and industry alike than the ones that areperceived by the educators like; critical thinking,problem solving, analytics, global orientation,decision making, cognitive flexibility, peoplemanagement, creativity, negotiation, etc.

4. Frequent and continuous updating of curriculumcatering to the needs of Millennials vetted by theexperts and delivered using innovative pedagogicaltools like; case based teaching (text, audio andmultimedia cases), role plays, storytelling,workshops, projects, activities, industrial visits andtours, TED talks, competitions, etc.

5. Making learning more of fun through Setting upthe informal forums/platforms for the learners like;Communication club, Reading club, Movie club,Yoga club, Cultural club, etc., and organizing seriesof activities and competitions to strengthen theirsoft skills (communication skills, presentation skills,interpersonal skills and other soft skills) and alsothe hard skills (domain specific skills)

6. Strengthening the linkage of an educationalinstitution with the industry and building a robustinterface with the industry (local/district level/statelevel/ national level/ international/ global) and shouldresult in win-win kind of situation. Industry shouldget the benefits of training their personnel byproviding them a platform for continual educationoffered by the Institution and seeking consultancyand research services offered by the Institution.Similarly, Institution should get the benefits of betterinternship and placement opportunities for theirstudents offered by the industry and keeping itscurriculum and pedagogy contemporary through

frequent interaction with the industry.



7. Inculcating entrepreneurial attitude amongst learnersat all levels has become the underlying philosophyof the new age education as recruiters are nowfocusing on corporate entrepreneurship, where-inthey have people working as if it were their ownorganization. The emphasis on creativity andinnovation has further emancipated the need forentrepreneurial mindset among the problem solversand decision makers of the organization.Entrepreneurship is now not restricted to thecomprehension of running one's own business butalso extended to running the business for whichhe/she is working - which is popularly known asIntrapreneurship. Entrepreneurial mindset,Entrepreneurial Zeal, and Entrepreneurial Energyare the key competencies that recruiters look for infuture employees along with the other competencies.This signifies the importance of entrepreneurshipeducation.

Conclusion

India being the youngest nation with a huge workforcein the working age group of 20-35, it becomes extremelyimportant to train the Millennials in the futuristic skillsand develop entrepreneurial mindset among them.Otherwise the situation could become disastrous. Thisis possible only through replacing our current educationpolicy with the New Age Education policy and practiceand embracing it to the core.

References:

Travis J Smith & Tommy Nichols. (2015). Understandingthe millennial generation. Journal of Business Diversity,15(1).

Deloitte 2017 millennial survey. (2017). The Millennialmind set: workstyles and aspirations of Millennials.

Bannon, S., Ford, K., & Meltzer, L. (2011). UnderstandingMillennials in the Workplace. CPA Journal, 81(11),61-65.

Deal, J., Altman, D., & Rogelberg, S. (2010). Millennialsat work: what we know and what we need to do(if anything). Journal of Business & Psychology, 25(2),191-199.

Guha, A. (2010). Motivators and hygiene factors ofGeneration X and Generation Y-the test of two-factortheory. Vilakshan: The XIMB Journal of Management,7(2), 121-132.

Kaifi, B. A., Nafei, W. A., Khanfar, N. M., & Kaifi,M. M. (2012). A multi-generational workforce: managingand understanding millennials. International Journal ofBusiness & Management, 7(24), 88-93.



We must not marginalize our trade unions:We must empower them

Dr. Dipak Kumar Bhattacharyya

Abstract

Globally trade unions are losing their positions. Density of trade unions has substantially decreased. In India, theposition is equally bad. Organizations, across the globe are now putting pressures on workers to be out of theirunions for certain extra privileges. Many organizations even unlawfully prevent workers to form unions. Althoughsuch aversive reaction to trade unions has some basis (grounded on past experiences of the organizations), authorsuggests, before we marginalize our trade unions, let us think partnering with them. Organizations must empowerunions with new knowledge and skills, create the level playing field, so that they can emerge as true partners andwork for mutual benefit. Such inclusive approach in the long run even benefits organization in terms of their sourcingof manpower, talent attraction, and even in marketing their products or services.

Dr. Dipak Kumar Bhattacharyya, Professor, Human Resource Management, Xavier Institute of Management, Xavier University,E-mail: [email protected]

Introduction

Since the Bombay Mill Hands' Association formationin 1890, trade unions in India have come through theages. Unlike their European and American counterparts,where occupation specific trade unions exist, in Indiatrade unions characteristically are general unions, withdirect or indirect political affiliation. In its present form,it appears we are marginalizing our trade unions andleaving the onus of protection of labour rights andprivileges, even those guaranteed by law, to the handsof employers. Good employers can do better, but majorityof those, for whom profit is their sole objective, labourexploitation will be more institutionalized. This we haveseen in pandemic situation now.

From the days of new economic policy announcementof the Government of India in 1991, trade unions inIndia are facing challenges. First let us consider whatis critical mass represented by the Indian trade unions? It is only 8.5 percent of people who are employed inthe organized sector! Residual 91.5% remainsunrepresented, even though technically these cross-sections of workers require trade unions' support. Tradeunions now adopt more inclusive approach to presentthe workers of unorganized sector, but it remainsineffective. Reasons are obviously for heartless

representation, as leaders are from the organized sector.Another obvious reason is paucity of data. New leadershipfrom the unorganized sector is missing, or to be morespecific have not been allowed to emerge, typically toguard against political interests.

The biggest challenge for Indian trade unions is tounshackle the control of political parties. They are killingthem, rather than positively patronizing them for settlingtheir issues. This has become possible for obviousfragmentation of trade unions over the years. Today wefind increased number of enterprise-based unions, manyof them are not affiliated to central trade unions. Inaddition, Indian trade unions are largely guided by thepolitical parties. Political parties to compete for the votebank always try to get trade unions' support. Multinationalcompanies and so also economically developed countriesallege in India we have more stringent labour laws toprotect the rights of the workers. Hiring, firing, andregulating working conditions, being highly mandatedby the labour laws, MNCs often find themselves inuncomfortable situations, as their way of doing businessin their free economy give them such flexibility in labourmanagement practices. Otherwise how after marginalizingtrade unionists in Columbia, these multinationals (some


of these companies also operate in India) can continuetheir business. In India with the advent of labour codes(in the form labour reforms), we will gradually head forsimilar situation, unless otherwise our trade unions playtheir responsible role.

Trade unions are now important partners for sustainabledevelopment of organization. The Cancun Agreement(ILO, 2010) resolved on such important roles of tradeunions. `Just transition' approach (denotes considerationof affected people by decision makers) for organizationalsustainability advocates among others, need for humanand labour rights, along with protective social systems.

Historically, trades unions were first started in Europeand North America, and gradually it engulfed the westernworld and subsequently the rest of the world. The tradeunions movements had played a crucial role to fight fordecent wages, workplace health and safety, workinghours, equal rights, safety net, etc. But now trade unionsin many countries are coping with serious problems.Union density is declining, and the unions are havingdifficulties in organizing our workers. Employers inmany countries, including India, are taking theopportunity of slackening growth of trade unions. Insome countries, say Australia, to undermine the spiritof trade unions, enterprise level bargaining, and evenone-on-one, i.e., individual level bargaining contracthave been legalized. This literally trivialized the sanctityof collective bargaining as an institution. Recent exampleof collective bargaining, between IBA (Indian Banks'Association) and Bank Unions, which dragged overseveral years with multiple rounds of inconclusivediscussions, can be a blow to collective bargaining asan institution to settle wage negotiation. Organizationallevel anti-union propagations are evident in the USA,U.K, and even in some Scandinavian countries, wheretrade unions density is quite high.

Scope of the Study

This paper after reviewing the trade unions' position inIndia, in terms of its density, and pacing with the resultswith the global trend; suggests the need for inclusiveapproach of the organizations about the trade unions.In the process trade unions also need to market theirimportance to their stakeholders, more importantly theiremployers. The author has experience in different

organizations, where with management initiatives, tradeunions have been systematically trained on varioustopical issues and with their enlightened knowledge,trade unions became more proactive in partnering withthe organizations for achieving excellence.

Trade Unions position - India and global

Throughout the world, trade unions have been acceptedas an institution for establishing workers' rights. Mediatingthe industrial relations between the employers and theemployees; trade unions play their important role. Withresponsible trade unions' activities, harmonic industrialrelations, matching with various stakeholders'expectations is possible. Responsible trade unionactivities, alongwith the responsible managerial practices,can never deter the industrial growth. In India, we havesuccess stories of Murugappa Group, Tata Group, Dabur,etc.

In India, we do not have any elaborate research studieson trade unions' density at the macro level. Venkatratnam(1997) and Kuruvilla (1996) could estimate trade uniondensity as low as two percent of total labour force. ILO(1997) studies however put this percentage to around5.4 percent of total wage earners, and below 10 percentof economically active population. Another study byDas (2008) negates such estimates, attributing this toinaccurate data published by Indian Labour Yearbook.This study shows that union density is above 30% of thewage-employed workers. Membership claim of centraltrade unions when studied over three decades indicateincrease in their membership by more than 100% from1980s figure. But again, such verification when we doin terms of paid subscription by members to theirrespective unions, the percentage is substantially low,and even in some cases, it is negative. Recent ILO'sestimate on density of trade unions in India shows thepercentage figure as 13.4%.

Trade unions density is the most important indicator oftrade unions strength. Density of trade unions is anindicator of possible influence of unions on the workforce.High density indicates high penetration, and hence thehigh degree of influence. In the 1990-2003 periods inthe USA, trade union density declined from 15.5% to12.4%, and in the countries under the European Union,it declined from 33.1% to 26.3%. Trade unions density



in OECD countries decreased from 20.8% in 1999 to17.3% in 2011.

A decadal trend in trade unions' density for some selectcountries (including India) is presented in table-1 below:

Table-1: Trade Unions Density for select countries

Country 1990 2000 2010

USA 16.1 13.5 11.9

Japan 24.4 21.3 18.3

Australia 40.5 24.7 18.1

India* 27.8 30.4 15.8

United Kingdom 42.6 29.8 26.3

Source: Industrial Relations Indicators, Trade UnionMembership Statistics, ILO, Geneva, 2014. Website:www.ilo.org/ifodial/information-resources/dialogue-data/lang--en/index.htm

* Data on India computed from various reports ofMinistry of Labour & Employment, Government ofIndia.

Declining trend of trade unions' density in India, likeother countries of the world, are primarily attributableto the changing skill level of new generation of workers.Post 1981 onward, India is experiencing structural changein the economy, shifting sectoral importance to primaryand secondary to tertiary. Workers with new skill setsare more educated, enlightened, and sensitive to theirindividual needs. They are capable to negotiate theirterms directly with the management, which managementin principle also agree as acceptable norms, asmanagement can vary terms on merit count. Such declinein trade unions' density, in addition to India, is a globalphenomenon now. Like their predecessors, trade unionsin UK, USA, Germany, France, and Italy can no longerinfluence the economic decisions of the country; theynow play their limited role to negotiate with theiremployers. But at least in their case, collectivebargaining as an institution still exists. Reviewing thetrend in India, we find, however, literal collapse ofcollective bargaining trend, which again signals decliningtrend of trade unions activities in India.

Responsible trade union leaders with a long-term visioncan adapt their policies to suit the new realities.

Management also can realize the dignity of workersmore than their previous generation and therefore areless prone to ill-treat with them. The important point isthat unionized labour accounts for only a small portionof the total workforce. It should not stand in the way ofpolicies that generate employment for the larger groupoutside trade unions' control.

To rationalize the activities of trade unions in India,Government of India also has come out with the TradeUnions (Amendment) Act of 2001, and subsequentlyseries of Bills, including the recent Trade Unions(Amendment) 2019. But these also cannot make ourtrade unions effective bargaining agent to secure therights of the workmen, primarily for low density of tradeunions, which obviously is for multiplicity of unions atorganization level. The importance of trade unionsformation was highlighted by researchers like; Vickery(1999) and Kaufman and Taras (1999) for the interestof the workers. However, we also have researcher likeColvin (2003), who could find even in non-unionizedworkplaces, workers are not always in difficult situation.

Why do we require trade unions in India?

National level data analysis reveals that even on dateonly 45.8% of the total workers in India (other thanthose engaged in agriculture) are covered under somesocial security schemes, which are statutory in nature.What is more surprising, even in government sector; allworkers are not fully covered under social securityschemes. In fact, the trend is so alarming in governmentsector that, over the years, concerns for social securityfor workers has declined from previous 87.23 percentto 86.03 percent (during the year 2009-2010). Similardeclining concern for social security measures are alsoevident in public sector companies, where the declineis from previous 61.22 percent to 58.05 percent in 2009-2010. Although this phenomenon is attributable to largescale casualisation of the workforce, but the scenarioillustrates our lackadaisical national level concern forlabour welfare (Bhattacharyya, 2014). With renewedfocus on unorganized workers, present government didtake number of initiatives to bring more and more workersunder some state sponsored social security schemes.But organization level voluntariness in improving thesocial security for workers are still far from cry.


Evidently many Indian organizations are resorting todiscriminatory labour management practices. This ismore evident when we see the way Indian organizationsdesign their compensation and benefits plan. Genderpay gap, pay differences across education groups,differences in Industry-wise compensation and benefits,occupation-wise differences, and so also high pay inequitybetween executives and non-executives, etc. are someof the examples of discriminatory labour managementpractices in India. This is primarily attributable toweakening bargaining power of our trade unions.

Reasons for reduced density of trade unions in India

Gradual decline of trade unions' density particularly inEurope and America, so also in Australia and Japan, nodoubt indicates globally trade unions are shaken. Indianfigure is also not encouraging, rather depressing. Mostunfortunate part of Indian data is its reliability. We donot have any concern for labour data. These signalsindicate trade unions are gradually being discarded bythe workers. Obviously, employers are now able tosettle their scores in direct negotiation with the workers. The composition of present generation of workers isdifferent than their predecessors. Generation Y are moreenlightened than baby boomers and generation X.

Second reason obviously is expectation of better payand working conditions. Generation Y, with the increasedknowledge (acquired through training), desperately tryfor achieving a level playing field in organizations withbetter pay and working conditions. They understandnothing comes free, and hence even individually cannegotiate better pay and working conditions for increasedperformance and productivity.

The other possible reasons can be their struggle forexistence. Changing technology and business processtoday make jobs more fragmented and definable. Withminimum number of core people in the payroll,companies can manage their operations with flexibleworkforce, like; temporary, sub-contracted and part time.Even though casualisation of employment throughoutsourcing and sub-contracting is restricted in India by



laws, companies, including public sector companies, areincreasingly making use of contract labours. Withamended labour codes, such trends will continue toincrease.

Conclusion

Trade unions can legitimize their positions inorganizations, playing the pro-active role. Todayorganizations require good governance practices, attracttalent, engage and retain employees, institutionalizeteamwork, value diversity, better market spread forreaching their products and services to wide cross-sections of people and society, etc. In all these areas,through trade unions' involvement, organizations canbenefit immensely.

For example, as part of good governance practices, oneimportant requirements of organization are to focus oncorporate social responsibility (CSR). Organizations canmeaningfully involve trade unions in CSR activities.With their involvement, trade unions can get the senseof inclusiveness, and gradually align with the organizationfor mutual benefit. Talent attraction, particularly throughreferrals, can also be facilitated by the trade unions. Asambassadors to organizations, trade unions can be aneffective link between the organizations and the society.Similarly, in employee engagement and retentionprogrammes also trade unions can be effective. Theauthor has also seen the enthusiastic unions' participationin several company sponsored programmes. Ininstitutionalizing teamwork, and diversity neutralworkplace practices, trade unions inclusiveness alsohelps. Trade unions as possible marketing support couldbe another area, which can be explored.

Whatever may be reasons for changed directions for thetrade unions today, it is the joint responsibility of theorganization, and so also the trade union leaders to thinkfor mutual inclusiveness, rather than distancing fromone another.

Hence rather than marginalizing our trade unions, it isbetter to empower trade unions in India, both for harmonicindustrial relations and mutual progress, which togethercan ensure our sustainable future.



References :

Bhattacharyya, D.K. (2012), Human ResourceManagement, 3rd edition, Excel Books, New Delhi.

Bhattacharyya, D.K. (2014), Compensation Management,2nd edition, Oxford University Press, New Delhi.

Colvin, A. (2003), Institutional Pressures, human resourcestrategies and the rise of non-union dispute resolution,Industrial and Labour Relations Review, Vol. 56, 375-392.

Costine, P. and Garavan, T.N. (1995), Trade unionattitudes to training and development: the road to a morepositive and proactive approach? Journal of EuropeanIndustrial Training, Vol. 19 No. 10, 1995, pp. 38-44.

Das, S.K. (2008), Trade Unions in India: UnionMembership and Union Density, The Indian Journal ofLabour Economics, Vol. 431, No. 4, pp. 969-982.

International Labour Organization (ILO, 1997), WorldLabour Report, 1997-1998, Industrial Relations,Democracy, and Social Stability, ILO, Geneva.

International Labour Organization (ILO, 2010), CancunAgreement: ILO highlights call for a "Just Transition"with given jobs and decent work. Available from:h t t p : / / w w w . i l o . o r g / g l o b a l / a b o u t - t h e -ilo/newsroom/news/wcms_149987/lang-en/index.htm.

Kaufman, B., and Taras, D. (1999), Non-union employeerepresentation: Introduction, Journal of Labour Research,Vol. 20 No. 1, pp. 1-8.

Koolsterboer, Dirk (2007), Innovative Trade Union:Strategies, Zuidam Uithof, Utrecht: Stichting FNV Press.

Kuruvilla, S. (1996), Industrialization Strategies andNational Industrial Relations Policy in Southeast Asia: Singapore, Malaysia, Philippines and India, Industrialand Labour Relations Review, Vol. 49, No. 4, pp. 635-657.

Veenkataratnam, C.S. (1997), Industrial Relations inIndian States, Industrial Relations Research Associationand Global Business Press, New Delhi.

Vickery, J. (1992), Unemployment and skills in Australia,Reserve Bank of Australia Research Discussion PaperNo. 1999-12.

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Book Review

Book Reviewed by:

Prof (Dr) Aloke Kr SenFormer Professor & Director SOMS- IIEST Shibpur &Ex- Director & Professor Heritage Business School, Kolkatae-mail: [email protected]


Compassionate appointment -

Constitution of India, 1950 - Arts.226 and 14 - WhetherRegulation 4(3) of the Rajasthan State Transport CorporationCompassionate Appointments Regulations, 2010, (for shortRegulations) is violative of Article 14 of the Constitutionof India, 1950? On consideration of rival arguments andposition of legal pronouncements their Lordships of ApexCourt disagreed with the view taken by their Lordshipsof Rajasthan High Court and answered this question in thenegative with these conclusions:

(i) The intention with which Regulation 4(3) is made isto obviate the liability of the Corporation in paymentof compensation under the Act and to providecompassionate appointment to the same person.

(ii) Regulation 4(3) cannot be said to the discriminatory.Their Lordships (of Apex court) are not in agreementwith the Judgement passed by the High Court thatRegulation 4(3) in violative of Article 14 of theConstitution of India.

(iii) As the respondent has received the compensationunder the Act, he is not entitled for compassionateappointment under the Regulations. Judgement ofHigh Court is set aside and appeal is allowed.

(iv) As the respondent in C.A. No. 7803 of 2019, had filed claimed petition under the Act, which was allowed by the High Court, as being covered by a judgement in Civil Writ Petition No. 13862 of 2014. The Appeal No. 7803 of 2019 filed by the Corporation is allowedin terms of the Judgement in Civil Appeal No. 7802 [email protected].(C)No.4772 of 2017.

(S.C.)…1032

Constitution of India, 1950 -

Art.226 - Misconduct, Disciplinary Inquiry, Punishment,set aside - A challenge is from the Municipal Corporation tothe Orders passed by learned single Judge, setting aside thepunishment awarded to respondent - employee for serioustype of misconduct he had committed, which was duly provedin the disciplinary inquiry, held by the Corporation. Onconsidering rival arguments, their Lordships of the DivisionBench of the High Court concluded that (i) the entire disputecentres on the similarity/dissimilarity of the charges made inthe criminal case and in disciplinary proceedings, and thequestion for consideration is, whether the departmental

proceedings should continue, after accused person has beenexonerated in the criminal charges by the competent Court?(ii) On consideration of law settled by the Apex Court, on theissue which is raised herein any charge framed against therespondent in the disciplinary inquiry which was distinct fromor in condition to the charges framed in the FIR and in saidcriminal case, decided in favour of respondent - workman.(iii) There is no infirmity in order of the learned First Courtin concluding that the Disciplinary Authority and AppellateAuthority had completely misdirected themselves, in imposingthe punishment on the respondent, two years after the orderof acquittal of respondent in the said Criminal Case. (iv) Thereasons given by both the Disciplinary Authority as well asthe Appellate Authority betray their determination to proceedagainst delinquent (respondent) despite the settled propositionin law, being to the contrary. (v) The impugned judgementdated 31st March 2016 is committed.

(H.C.Cal.)…951

Contract Labour (Regulation and Abolition) Act, 1970 -

S.10 - Abolition of contract labour system - A challenge isby the petitioner - appellant Union to the Judgement of learnedsingle Judge, rejecting his prayer to direct respondent No. 1- State of Gujrat, to issue necessary Notification, abolishingcontract labour system in all the 38 activities carried on byrespondent No.3 ( listed in Annexure - A to the petition). Onconsideration of rival arguments in view of all the case lawavailable on this crucial issue, their Lordships concluded that(i) as held by the various judicial pronouncements that theaction u/s. 10 of the Act is quasi - legislative action, there isno need of observing principles of natural justice. (ii) Theaforesaid discussion and narration of the proceedings wouldclearly indicate that the principle of natural justice cannot besaid to have been violated, so as to vitiate the proceedingsbefore the Authority. (iii) On perusal of impugned judgementof learned single Judge of this Court it clearly transpires thatthe learned single Judge has taken into consideration all theaspects of the case and has rightly dismissed the writ petition.(iv)The grievance raised by the appellant cannot be redressedin a petition filed under Article 226 of the Constitution ofIndia.

(H.C.Guj.)…851

Employees' Provident Funds and Miscellaneous ProvisionsAct, 1952 -

S.s.7-A- Coverage of pigmy agents/collection agents ofsmall deposit amounts - Questions for consideration - (i)

Legal Notes



Whether pigmy agents/collection agents appointed by theBanks for collection of small deposit amounts, could becovered (as employees) under the provisions of the Employees'Provident Funds Act & Miscellaneous Provisions Act 1952.(ii)Whether the Provident Fund Commissioner could enquireinto the applicability of the Act of 1952 on such Banks andif so the liability of the Banks under the provisions of the Actof 1952? On exhaustive consideration of case law availableon the issues involved herein, his Lordship answered thequestions partly in affirmative and disposed of the petitionswith a detailed guiding lines enumerated in para 28 sub paras(1) to (17).

(H.C.Bom.)…863

Ss. 7-A, 7-1, 7-Q- Determination of amount due fromemployer - Appeals - Deposit of amount on filing appeal- Complete waiver of - Whether sustainable - A Challengeis from Petitioner to the order of EPF Appellate Tribunalgranting complete waiver of pre-deposit on filing appeal -The Court held that : (i) Important factor weighed with Tribunalwas respondent's plea that M/s. Shramika Kutir Udyog werenot exclusively carrying out work for respondent could neitherbe held its principal employer nor could be saddled withliability of paying provident funds dues of employees ofShramika Kutir Udyog. (ii) There is no merit in petitioner'splea that Tribunal did not record any reason for grantingwaiver. (iii) Once proviso to Section 7(O) specificallyempowers Tribunal with discretion to grant complete or partialwaiver after recording reasons for such grant, it could not beurged that it should not exercise such discretion . (iv) Thereis no merit in contention of petitioner that merely becauserespondent had not disputed the calculations made by petitionerat the time of passing order, it implies that respondent hadadmitted its liability. (v) Petitioner chose to assail ordergranting waiver from pre-deposit after inordinate delay ofthree and half years. On this ground also no interference iswarranted with impugned order at this belated stage. (vi) Writpetition being meritless is dismissed with pending applications.(vii) Tribunal directed to decide the matter expeditiously. 8.The Court has not expressed any opinion on merits of casewhich should be decided in accordance with Law.

(H.C.Del.)…1071

S.7-A, 7-Q - Determination of money due from employer- Liability to pay interest - Attachment - Arrest Warrant- A challenge is from petitioner to attachment order dated23.10.2013 and show cause notice dated 18.11.2013whereunder petitioner has been asked to show cause as towhy arrest warrants should not be issued against him. Thepetitioner has also prayed for permission to file statutoryappeal before the Tribunal. After considering the rival

contentions, the court held that (i) It would be in the interestof justice to permit petitioner to prefer statutory appeal so thatquantum of dues can be appropriately examined by the Tribunal.(ii) There is merit in contention of petitioner that due to deathof his father, no appeal could be filed before the Tribunalwithin prescribed time. (iii) Keeping in view that interimprotection had been granted in favour of petitioner and alsothe petitioner is asking only opportunity to assail assessmentorder by way of statutory appeal, petitioner granted four weekstime to prefer appeal assailing order dated 5.11.2012 inaccordance with law. (iv) Balance amount lying with respondentno.1 be retained by him till final adjudication of appeal andwill be treated as due compliance with condition of pre-deposit,as required under Section 7-Q of the Act. (v) The order passedwill not be treated as a precedent.

(H.C.Del.)…1059

S.7- A(4), 7-1 - Challenge to Order of Coverage ofestablishment - A challenge is from the petitioner- Factoryto the ex parte Order passed under S.7-A of the Act of 1952,for coverage of the factory. On consideration of rival arguments,his Lordship concluded that (i) The Order impugned waspassed by respondent-Authority on 25.9.2014, after issue ofsummons to the petitioner on 2.11.2010 i.e., after almost threeyears, during which sufficient opportunity was given topetitioner to put its case. (ii) It is to be noted that Applicationfiled u/s.7-A(4) of the Act, was dismissed on the ground thatthe Order dated 25.9.2014 was not an ex parte Order. ThatOrder dated 18.11.2014 after which present petition has beenfiled on 16.3.2016. (iii) Rule 21 of the E.P.F. Appellate Tribunal(Procedure) Rules 1997, would not include the power tocondone delay beyond the further period of 60 days, aspermitted by Rule 7(2) of the said Rules. (iv) The statutoryremedy to challenge an Order passed U/s.7-A of the Act, after120 days, is lost by the aggrieved party. (v) On the principalgrievance of absence of identification of beneficiaries', despiteall chances which petitioner had during the said three years,no attempt was made by the petitioner. (vi) It is found thatthere is no exceptional case made out by the petitioner, toenable the Court to entertain the challenge as raised herein.The statutory remedy as provided has not been availed withinthe prescribed period. This Court is not inclined to entertainthe writ petition.

(H.C.Bom.)…919

S.7-1 - Constitution of India, 1950 - Art.227 - Jurisdiction- Whether the writ petition filed by the appellants assailingthe Order dt. 20.10.2005 passed by the E.P.F. AppellateTribunal, would be maintainable before the Calcutta HighCourt, can exercise territorial jurisdiction. Thus the CalcuttaHigh Court was not justified in its decision to decline to



entertain the writ petition. The Order dt. 19.8.2008 is set asideand appeal is allowed. The C.O. No.208 of 2006 is restoredto the file of the High Court of Calcutta. The contentionsraised on merits are kept open to be considered by the HighCourt in accordance with law.

(S.C.)…1047

Ss. 14-B, 7-1 - Interest and damages - A challenge is by thepetitioner, Management to the Order dated 21.12.2010,confirming the Order passed by E.P.F. Commissioner No.II,Madurai, imposing the penalty u/s. 14-B of the EPF & MPAct 1952. Considering the fact that pending the Writ Petition,the petitioner has remitted the arrears of contributions andtaking note of the fact that the respondent levied penalty, ona wrong premises that the financial difficulties or such reasonshave no role in mitigating the liability for payment of penaltyu/s. 14-B of the Act as concluded by the Authority concerned,his Lordship concluded that (i) the question of levy of damagesu/s. 14-B of the Act arises only when the employer fails topay contributions intentionally or without sufficient cause.(ii) Unless there is mens rea or actus reus on the part of theemployer, damages cannot be levied u/s. 14-B of the Act. (iii)In view of pronouncement of Honourable Supreme Court,this Court is not inclined to accept the view of other HighCourts. (iv) Impugned Order dated 21-12-2010 passed by therespondent No.1 Tribunal confirming the Order of the 2ndrespondent is set aside. (v) The second respondent is directedto refund the deposited amount of Rs. 30,00,000/- to thepetitioner within a period of six weeks from the date of receipta copy of this Order to the petitioner.

(H.C.Mad.)…1011

Ss. 14-B, 7-Q, 7-1 - Power to recover damages - Liabilityto pay interest - Element of means rea-Appeal - A Challengeis from Petitioner-Company to the order dated 22.7.2019passed by EPF Tribunal rejecting Petitioner's challengeto assessment order passed by respondent - After consideringthe rival contentions of the parties, the Court held that (i)Very fact that petitioner had made deductions from incentivespaid to employees in itself shows that petitioner was wellaware that provident fund was payable , yet wilfully failed todeposit it within prescribed time. (ii) Mens rea on part ofpetitioner is writ large and respondent was fully justified inclaiming damages and interest from petitioner. (iii) Relianceplaced by petitioner on the case of National Co-operativeSugar Mills Ltd v. P.O., EPF Appellate Tribunal Delhi andothers is wholly misplaced where the facts were entirelydifferent. (iv) There is no merit in the contention of petitionerthat respondent should have sent monthly reminders in casethere was any delay in depositing provident fund dues. (v)Once an establishment is allotted Code Number under the

Act, it is expected to ensure strict adherence to the provisionsthereof and is under statutory duty to make timely deposits ofthe provident fund dues in accordance with the timelinesprescribedunder the Act.

(H.C.Del.)…1073

S.16(1)(d) - Exemption under E.P.F. & M.P. Act, 1952 -These three appellants - Limited Companies take exceptionto orders passed by respondent No.1 Authority, rejecting theirprayer for grant of exemption from the provisions of this 1952Act, which orders were upheld by the single Judge and DivisionBench of the High Court of Rajasthan. On consideration ofrival arguments , in the background of the law settled by theCourts, their Lordships concluded that (i) Each one of thefacts by itself in each of these three units, taken as a whole,there can be no other conclusion than the one arrived at bythe R.P.F. Commissioner, despite sum jumbling which hasarisen in the Order of the R.P.F. Commissioner which hasbeen affirmed. (ii) There is little doubt that BCCL Jaipur isa unit of BCCL, Mumbai and the other two units have linkagesand are controlled by BCCL Jaipur in a manner which wouldsatisfy the functional integrality and the general unity ofpurpose test, and the same are met in the facts of this case.(iv) With this prolonged litigation the appellants are gettingaway lightly on the issue of such liability, the exact amountof which , is to be determined. The liability of each of theestablishments would be co-extensive with BCCL, Mumbai.(v) In this background this Court is inclined to impose specialcosts on all three appellants (as detailed in para 44 of thisJudgement).

(S.C.)…1022

Employees' State Insurance Act, 1948 -

Ss.75, 2(9), 2(12), 2(13), 2(17), 2(22) - Demand Notice,asking respondent - Company to pay contributions - Achallenge by the E.S.I Corporation is to the Judgement andOrder passed by ESI Court, Ahmedabad, concluding that ESIcorporation had no case to issue demand Notices, forcontributions, in view of the nature of work executed byrespondent-Company and payments made by it to thecontractors were not ''wages'' and they were not the employeesof respondent-Company. His Lordship concluded that (i) Inthe background of law settled by the Apex Court in HyderabadAsbestos Cement Productions Ltd. V. The E.S.I Corporationreported in 1978 (1) SCC 194, the term 'employee' wouldinclude not only include persons employed in factory, but alsopersons connected with the work of the factory, though theymay be working within the factory or outside the factory, ormay be employed for the work of factory in any manner or



such employees are included within the definition of''employee''. (ii) Keeping in mind definition of ''employee''u/s. 2(9) of the Act, read with S.2(12) of the Act, and of theword ''factory'' u/s. 2(13) of the Act, the word ''immediateemployer'' under S.2(13) and of ''immediate employer'', S.2(17)of the Act of the word ''principal employer'' and the word''wages'' defined in S.2(22) of the Act was interpreted by theApex Court. (iii) The ESI Court committed an error by grantingpermanent injunction of recovery of contribution towardsESI. (iv) Therefore impugned judgement dated 27.10.1989 isquashed and set aside.

(H.C.Guj.)…843

Payment of Gratuity Act, 1972 -

Ss. 4(6)(i)(a), 4(6)(i)(b) - Central Bank of India EmployeesGratuity Fund Rules, 1975 - Rule 12 - Misconduct -Termination - Forfeiture of gratuity - Grounds for - Achallenge is from petitioner employee to the order ofrespondents forfeiting his gratuity on termination of his service.After examining rival contentions, the court held that : (i) Aperusal of the previous show that gratuity of employee isliable to be forfeited on account of loss or damage caused toemployer. In instant case neither any damage has beenquantified nor it has been quantified in inquiry report. (ii)Argument of counsel for petitioner to grant opportunity andremand of matter is not acceptable in view of judgement inthe case of Mohinder Singh Gill and another v. Chief ElectionCommissioner, AIR 1978 SC 851. (iii) In such circumstancesdifference as such between the punishments is also apparentand the words used are 'termination of service' which is alsothe language of section 4 of 1972 Act. In such circumstances,jurisdiction of respondent bank also to forfeit gratuity on bothcounts is lacking. (iv) In the case of Union Bank of India v.C.G. Ajay Babu and Anr. 2018 II CLR 325 (S.C.) : (2018)9 SCC 529, it was held by Apex Court that gratuity could beforfeited only on account of financial loss caused to bank.Further no criminal proceedings were filed against theemployee as such there was no jurisdiction for forfeiture ofgratuity as the misconduct of acts which involved moralturpitude had to be duly established in court of law. (v)Impugned order not sustainable and is quashed. Bank directedto pay gratuity within two months with interest @ 8% p.a.(vi) Respondent Bank also directed to pay interest on amountof leave encashment from date of dismissal to appeal withintwo months failing which interest shall be payable @ 10%.

(H.C.P. & H.)…1079

Sexual Harassment of Women at Workplace (Prevention,Prohibition and Redressal) Act, 2013 -

Section 4 - Internal Complaints Committee (ICC) - Whethervalidly constituted - A Challenge is from Petitioner - Complaintto the PU Senate proceedings dated 21.1.2017 and 29.1.2017,Syndicate proceedings dated 10.1.2018 and 17.2.2018 andletters dated 20.3.2018 and 19.7.2018. Petitioner has soughtdirections by issuance or writ of mandamus or otherwisedirecting respondent no.1 to constitute a Committee to inquireinto complaint of petitioner as per provisions of the Act. Afterhearing parties, the court held that (i) Court is unable topersuade itself that ICC has not been constituted byrespondent/employer. (ii) Respondent, after due applicationof mind, sought recommendation of Syndicate/ Senate andafter considering same, constituted/approved members ofcommittee with liberty to petitioner to raise all grievancesthere. (iii) There is no infirmity in impugned orders/lettersand same are legally tenable and are in consonance withapplicable law. (iv) Contention of petitioner that ICC constitutedwithout jurisdiction is rejected. (v) There is no material recordto support contention of petitioner that respondent no.1 hasnot been apprised of complete proceedings and was givenonly some part of Senate's Proceedings withholding vitalinformation about dissent recorded by other members ofcommittee. (vi) Even assuming otherwise, once resolution ispassed by majority of Senate, any dissent did not affect itslegality and validity and non-submission of notes of dissentof no consequence and is insignificant . (vii) Constitution ofcommittee is as per mandate and in consonance of the Actand contrary contention cannot be accepted. (viii) Reconstitutionof Committee or grant of stay on proceedings would provideunfair handle to and place complainant in a commandingposition to act on her whim and fancy to dictate her own termsuntil constitution of committee of her own members. Thatwould erode statutory authority of employer to constitute thecommittee. (ix) No valid grounds of bias or malice have beenmade out by petitioner against constitution of committee. (x)While upholding constitution of ICC, petition disposed ofwith liberty to petitioner to raise her contentions and objectionsfor mitigation of her grievances before ICC which shall lookinginto the same before submitting its final report. (xi) Contentionsraised by petitioner have been dealt with only in passing hereinand any observation shall not be construed as opinion onmerits.

(H.C.P & H.)…977



1. Place of Publication Kolkata

2. Periodicity of its Publication Half yearly

3. Printer's Name Mr. Sandip Samaddar

(Whether Citizen of India?) Yes

(If foreigner,State the country of origin) x

Address Southend Conclave, Tower Block

(3rd Floor),1582,Rajdanga Main Road,

Kolkata-700 107.

4. Publishers Name Mr. Sandip Samaddar

(Wheather Citizen of India?) Yes

(If foreigner, State the country of origin) x

Address Southend Conclave, Tower Block

(3rd Floor), 1582, Rajdanga Main Road,

Kolkata-700 107.

5. Editor's Name Dr. (Capt.) C. M. Chitale

(Wheather Citizen of India?) Yes

(If foreigner, State the country of origin) x

Address Southend Conclave,Tower Block

(3rd Floor), 1582,Rajdanga Main Road,

Kolkata-700 107.

6. Name and Address of Individuals who

own the Newspaper and Partners or

Shareholders holding more than one Not Applicable

percent of the total capital

I Mr. Sandip Samaddar hereby declare that the Particulars given above are true to the

best of my knowledge and belief.

Mr. Sandip Samaddar

Date: 30.12.2019

Not to be returned to the Press Register: Signature of Publisher

FORM IV(see Rule 8)


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