Futuristic HR Out Look E Zine Sept2013 Issue

7/27/2019 Futuristic HR Out Look E Zine Sept2013 Issue

1/6

From the past 65 years in India HR profession hastransformed from welfare concept with statutory force totodays Human Resource Development and Management. Ithas emerged from various disciplines like, social sciences,psychology, commerce, business management, economics

and legal congregating to address people management anddevelopment in industry.

Organizations now are looking ahead with futuristic view ofHR to become a business partner and not confined to routineadministration function of people management and

compliances. However, it is HR Professional who has tointerpret employment laws in day to day work to protect theinterest of employers while ensuring employees a fairprocess.

It is very aptly said that every line manager is a HR

Manager. Line Mangers are the ones who directly interactwith employees daily and have to play a pivotal role inemployee development. But in practice, it seldom happens.

Keeping in view the responsibilities and need for theenhancement of capabilities of People Development and

Management cast on HR Professionals and Line Managers,this e-zine has come into being to contribute on its part, a

small portion of the whole gamut of requirement.

EDITOR

EDITORIAL

Communicate changes in priorities.

Form cross functional teams to simplifyprocesses and reduce cost.

Revise goals according to market focus.Modify individual goals to align with the

revised goals of the organization.Track employee performance.

Give feedback to employees continuously.

Assign multi tasking for high performers

Train good performers

SURVIVAL DURING DOWNTURNA

HR PERSPECTIVE

L ooking forward..

FOR PRIVATE CIRCULATION FREE OF CHARGE

IN THIS ISSUE

Vol.1 Issue 1 September 2013

Role of Line Mangers in HR P.2 Self Assessment Tool Find out Fundamental

Leadership Skills in You P 3

What components constitute Basic Wage for PFContribution? P5

Legal Interpretation P6

Tips on Listening P6

D o you know

To enforce 8 days deduction of wages for absence inconcert by 10 or more employed persons under

Payment of Wages Act, 1936, there must be a

provision in the Certified Standing Orders.

Knowledge is gained by learning,

skill by practice - Thomas S. Szasz

QUOTE OF THE MONTH


2/6

2

FUTURISTIC HR OUTLOOK - SEPTEMBER 20132

In any organizationfrontline managers have a

crucial role to play to getbusiness results and there is

no second thought about it.

These line managers usually

perceive their line

responsibilities and

accountability as the only

aspect of their job even

though they have to lead ateam of employees with

them through whom they

have to get results.

In practice, these managersinteract with employees in

day-to-day operations by

communicating and

supervising their

performance. In fact theyare the leaders for them by

allocating work and

directing.

In todays, economic

downturn, industries arefacing problems of not only

marketing their products

effectively but also

importing material and

technology at very high

prices. In these

circumstances, it is butnatural for organizations to

think to downsize thestrength. In this process a

good talent will be lost andcannot get back immediately

when markets improve. The

best way of looking at this

crisis is to improve the

capabilities and

competencies of employeesat all levels so that their

services can be better

utilized in increasingproductivity which is

essential.

Though conventionally, it is

the primary role of HR inany organization to initiate

learning and developmentinitiatives, one should not

forget the role expected of

line managers for a

successful implementationof such initiatives. They can

be successful only with the

strong front line managers

and need of the our for Hr is

to support the line managers

since they are needed to

communicate effectively

with employees the

changing scenario of

markets and use their

influence to make themperform. Line managers

have to be developed in a

leadership role rather than

confining them only to their

managerial role of

conventional controlling.

Traditionally, the need of

the line managers is

recognized only duringlabour unrests. But, these

vital links with enormous

influence over employees

can play a major role in

developing attitudinal

changes among them to get

desired results. Any number

of good training programs

with outside trainers will

have only a minimal

outcome at the most. If linemanagers take active role in

employee development theresults will be identified by

the behavioural aspects of

employees with outcomes in

increase of productivity.Employees believe their

immediate managers more

than the outside trainershowever effective they may

be. If trained, they can

demonstrate as levers for

driving performance

through employee engage-ment.

The following are the areas

where they need to be

strengthened:

Exhibit Commitment

Honest and Integrity

Adaptability to Change

Communicate companygoals with clarity

Allocate right people tothe right tasks

Coach employees

Inspire employees with

passion

Communicate

performance

expectations

Now, the onus lies with HR

to develop one of the mostvaluable assets called the

front line managers to

ensure a performing culture

with effective employee

engagement and to supportthese line managers.

Tail Piece:

In a Front-Line Manager

Communication Study. It wasfound that Frontline Leaders

are the most sought out, yetuninformed, ill-equipped, and

under-utilized communicationvehicle of an organization.

(reference:http://www.crainc.com/archives/front-line-manager-communication-study/ )

Role of

L ine M anagers

in

H R


3/6

3

Crucial crisis

How did you become more results centred?

How did you become more internally directed?

How did you become more focussed on others?

How did you become more externally open?

3FUTURISTIC HR OUTLOOK - SEPTEMBER 2013

S elf

A ssessment

One has to develop leadership skills to be successful in every phase of life. Hereis a tool to make self analysis of how you have surmounted the challenges faced

by you at some point or the other in your life, both personal and professional.When we face a crisis we enter into the fundamental state of leadership andimmediately have new thoughts and engage in new behaviours.

This tool will help you understand how you have transcended your greatest lifechallenges by entering the fundamental state of leadership. This self assessment

tool was used in a leadership workshop at the University of Michigans RossSchool of Business.

Take a print out of this tool and recollect the most significant challenge youfaced.

After writing the crisis you faced in the space provided, please write details in the

first column under each query and then in the opposite column of each row writedown in simple terms like intention, integrity, trust, inter personal relations,motivation, collaboration, communication, adaptability etc.

Inspired by the article Entering the Fundamental State of Leadership by Robert E. Quinn

originally published in July 2005 issue of Harvard Business Review. This is not meant forcommercial use.

In the October 2013 issue :HR Competencies

Tool for Assessing Employee Development


4/6

4

Call Us: +918050103450

In Company Programs For Line Managers

Internationally Certified Behavioural Analyst and

Certified Management Trainer Mr. Surendranath.A,

will design and deliver the programs customized

to the needs of the or anization.

To know more about us, please visit

www.nulinehr.weebly.com

4FUTURISTIC HR OUTLOOK - SEPTEMBER 2013

Advt.

Change Management

People Skills For New

Supervisors/Managers

Influencing Employees

Leadership SkillsCoaching Skills

Giving Feedback

Skills for Presenting Officer

Role of Line Managers in

Discipline & Industrial

Relations

HR Skills for Line Managers


5/6

5

5

from the definition of term

basic wages. 1962-II-LLJ-

490 (SC)(FB).

But in some instances thePF Inspectors remarked in

the inspection books that

special allowance paid to

employees are to be covered

under basic wage attracting

contribution to be paid.

Usually, this type of special

allowance or any similarname is provided in pay

structure to adjust theamount which is not fitting

into the salary structure and

it will be a regular payment

constituting payment in

terms of contract of

employment. In case of

unionized employees such

components will arise inwage settlements which are

also constitute payment in

terms of contract ofemployment. Therefore,

such special allowances

paid are covered under the

definition of basic wage and

contributions have to be

paid on such allowances.

But in practice PFcontributions are not paid on

special allowancesgenerally due to

misinterpretation to avoidemployers liability to

lessen the cost. However,

any special allowance which

is not paid under any

contract of employment,

settlement or award purelyout of employers own will

and pleasure will not formpart of wage as held by

Madras High Court in the

case of R. Ramanathan

Chettiar Jewellers, Madurai

v. Regional Commissioner,

Employees Provident Fund,

Madurai, 1988-II-LLJ-945.

While overtime allowance is

exempted, any allowance

received for extra work doneon time it is not considered

as overtime vide AmalKumar Ghatak v. Regional

Provident Fund

Commissioner and Others,

1980-II-LLJ-308 (Cal).

Good work allowance or

reward done during extra

hours is also not considered

as overtime since it has notbeen consider in the nature

of overtime vide D.C.M.Limited v. Regional

Provident Fund

Commissioner, 198 I- LLJ-

979 (Raj).

Since the word bonus is

used without any

qualification, it covers everykind of bonus paid to

employees which is

excluded from basic wage.Any incentive paid under an

incentive scheme in

pursuance of the settlement

reached is an incentive

bonus or production bonus

in the nature of reward for

labour not arising out ofcontract of employment but

depending upon the excessproduction over and above

the norms specified. As suchincentive bonus and

production bonus are

excluded form basic wage

under Section 2(b) vide

Greysham &Co. v The

Regional Provident FundCommissioner, New Delhi,

1978-II-LLJ-95 (Del).

A full bench of Supreme

Court in the case of Bridge

and Roof Company (India)

Limited v. Union of India

and Others held that bonus

of all kinds are excluded

Basic Wage is defined under

Section 2 (b ) of the

Employees Provident Fund& Miscellaneous Provisions

Act, 1952 as allemoluments which are

earned by an employee

while on duty or on leave or

on holidays with wages in

accordance with the terms

of the contract of

employment which are paid

or payable in cash but doesnot include the cash value of

any food concession, anydearness allowance ( that is

to say all cash payments by

whatever name called paid

to an employee on account

of cost of living), house rent

allowance, overtime

allowance, bonus, any

commission or similarallowance payable to an

employee in respect of his

employment or of workdone in such employment

and any presents made by

the employer.

However, the exception

given to dearness allowance

is corrected by including itin Section 6 for the purpose

of contribution. Similarly,explanation 1 under Section

6 says dearness allowanceshall be deemed to include

also the cash value of any

food concession allowed to

employee by which

exemption given under

Section 2(b) is correctedunder Section 6.

As such any subsidy given

on food provided in canteen

or lunch coupons in lieu of

canteen food or food

allowance will also attract

PF contribution. In practice,

it may not be happening.


Contd. on Page 6


6/6

6

6

According to news releasedby Indo-Asian news service

on 15th May 2013, a reply to

a Right to Informationapplication has revealed that

Rs. 1.44 crore fees have

been paid as in the last six

months for a Senior Lawyer

from Delhi, hired by the

Hayana Government to fight

the case against 167 workers

prosecuted by Police forviolence at Marutis

Manesar unit last yearwhich claimed life of a

senior company official

while around hundred others

were left injured.

Again, Madras High Courtshas delivered judgment that

conveyance, educational

allowance, foodconcessions, medical,

special holidays, night shift

incentives and city

compensatory allowances

attract PF contributions as

they fall under the definition

of basic wages under

Section 2(b). Similarly,Madhya Pradesh High court

in the case of Surya RoshiniMills held that conveyance

allowance and special

allowance to be included in

basic wages quoting

Supreme Court judgment in

the case of Manipal

Academy of Higher

Education v. Provident FundCommissioner (2008) 5

SCC 428

Currently, the case of Surya

Roshini Mills is before

Supreme Court for judgment

We have to wait and see the

outcome.

Originally written for the

blog onwww.nulinehr.weebly.com

What components

constitute Basic Wage

for PF Contribution?

Contd. FromPage 4

Rs 1.44 crores

Legal E xpenses

Edited and published bySurendranath. A onbehalf of Nuline HRConsulting and circulated

electronically.

Nuline HR Consulting#5, Anjanadri PlazaGirinagar Circle

Bangalore-560085

Listening means hearing, interpreting,

evaluating and

responding.

Be poised and

emotionally controlledNever lose temper

Listen coolly Let off

the steam


Principal Employer Not

Liable To Pay Bonus To

Contract Labourers under

Payment of Bonus Act,

1965

In the case of M/S Hindustanlever Ltd., Mangalore, Factory

Manager and Unit HR Headwere prosecuted by theOfficials of Labour

Department Government ofKarnataka in a criminal casefor the alleged violation ofSection 11 of the Payment of

Bonus Act, 1965 for anoffence p/u/s 28 of the said Act

before JMFC (II Court),Mangalore. which is

punishable under Section 28 ofthe said Act. The allegation

was that contract labourerswere not paid bonus on parwith regular employees. A writpetition was filed by bothFactory Manger and Unit Head

of HR in the Karnataka HighCourt which found .the claim

of the Labour Department thatthe contract labourer are alsoentitled for payment of bonus

on par with the regularemployees, as contended in thecomplaint has no legal basis

and it does not amount toviolation of Section 11 of the

Act attracting punishmentunder Section 28 of the said

Act. The prosecution launchedbefore J.M.F.C. (Court-II),Mangalore was quashed byKarnataka High Court.

Mr Shachindra Kumar vsState Of Karnataka on 22

February, 2013

Legal

Interpretation

T ips O n

Listening

Futuristic HR Out Look E Zine Sept2013 Issue

Documents

Transcript of Futuristic HR Out Look E Zine Sept2013 Issue