CS Final :: Human Resource Management and INdustrial Relations : June 2006

Super-Specialty Ltd., New Delhi runs a nation-wide chain of 400 outlets in India. It deals in specialities like gifts, Archie cards, Kampanwalla brand toys, Ruonjhun brand trinkets, apparels, etc. Its largest market is in Western Region with 200 outlets alone in Mumbai, Panjim, Ahmedabad, Bangalore and Jaipur. Each outlet is handled by an Area Manager reporting directly to General Manager (Sales), Aneesh. On 28th March, 2006, Aneesh resigned on personal grounds. In his place, Mukul, an MBA and posted as Area Manager-Goa, was promoted as the General Manager (Sales) and transferred to corporate office at New Delhi. Though, there is adequate staff in the sales division, there are no junior sales officers to assist the General Manager (Sales). Besides, there are no promotion or training policies or rules for the managers. So, the General Manager (Sales) requested the Board of directors to introduce professionalism in management cadre. The Chairman-cum-Managing Director asks for the draft of model scheme including organisational changes, wherever necessary.

As the Company Secretary of Super-Specialty Ltd., you are required to frame model scheme/rules with special emphasis on—
 (i) Career planning; and
(ii) Performance appraisal.

“Induction is an integral part of training”, remarked Sharan, Chairman-cum-Managing Director of ABC Constructions Ltd., Gurgaon (Haryana) during a Board meeting convened to find solution to the problem of fresh employees ‘doing the job their way’. As the Company Secretary of the company, what would you do to pave the way for healthy training practices?

Discuss the distinguishing features of ‘human resources management’ and ‘human resources development’.

Write notes on any three of the following :

(i) (ii) (iii) (iv)

Fringe benefits Employee leasing Vestibule training Research role of a Human Resources Manager.

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Vivek is the CEO of a private sector bank. In order to improve the staff efficiency in the bank, he wants to declare a remuneration package linked to the performance targets. As the Company Secretary of the bank, you are asked to prepare a note covering following aspects :

(i)	Whether in a service industry like bank, is it possible to remunerate the staff based on their individual performances ?
(ii)	Will such performance assessments be objective or subjective ?
(iii)	How to assess the individual contribution in the performance of a team ?

Outline in brief the strategy for managerial communication in the human resource department of an organisation.

Garvi Gujarat Electronics is a 2-year old undertaking manufacturing electronic equipments at Gujarat Industrial Development Corporation Industrial Estate, Vadodara. In this area, heavy continued rains occur every year. The company employs 1,200 workers who work in two shifts of 600 each as follows :

Shift-I — From 7.00 AM to 3.00 PM Shift-II — From 3.00 PM to 11.00 PM. The company does not provide any housing or transport to the employees. In fact, it is yet to submit draft standing orders to the certifying officer under the Industrial Employment (Standing Orders) Act, 1946. On 17th September, 2005, heavy rains with thunder storms lashed the city whole day. The roads were flooded, traffic was paralysed for three days thereafter and city life came to virtual standstill. In the factory, attendance position on an average for three days was as under :

About 90 workmen residing within a radius of 3 kms. of the factory came to work at 7.00 AM on their own cycles, scooters, etc.

About 210 workmen residing within 5 kms. of the factory could report on duty around 9.00/9.30 AM only.

About 100 workmen living in scattered areas of Vadodara waded through flooded roads to reach the factory at about 2.00 PM.

Thus, in Shift-I only 400 workmen worked for different timings. In Shift-II, there were hardly 100 workmen left to work. So the production in Shift-I was about 75% but 10% in Shift-II, resulting into substantial loss of production. To offset such losses, the Company Secretary-cum-Manager (Personnel) decided to––

withhold bonus payable to all the workmen for year 2005-06. The workmen were greatly distressed on this. The company’s two registered trade unions, viz., Karamchari Mandal and Employees Union, agitated. Due to inter-union rivalry and to steal the limelight, each represented to the management that only their members be allowed full wages and admissible bonus since the loss was due to company’s faults and the act of God. They also demanded framing of draft Standing Orders for submission to the certifying officer immediately or else indefinite strike will follow.
You are required to answer —

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As the Company Secretary holding pivotal position in Oil Exploration Corporation Ltd. — a large industrial undertaking with all India level operations employing 25,000 engineers, site supervisors, labour force, etc., — you should be alive to various striking features of industrial conflicts in India, e.g., political strikes in South-West Region vis-a-vis reactive lockouts in Eastern Region.
Identify such factors to advocate practical HRD/OD solutions for good industrial relations and peace in your corporation.

Mention the stages involved in carrying out contract negotiations, e.g., collective bargaining.

Mention the obligations of registered trade unions under the Trade Unions Act, 1926.

“Adjudication is as essential as compulsory education or compulsory taxation.” Comment.

“Mediator is a confidential advisor and an industrial diplomat.” Comment.

Citing decided case law, wherever necessary, state whether the following statements are true or false :

(i)	No notice to enter the premises for arriving at settlement by the conciliation officer is necessary so that expeditious decisions could be taken.
(ii)	The award of the Industrial Tribunal, Delhi as confirmed by the Labour Appellate Tribunal, is not binding on the company’s employees working in Chennai region of the same company.
(iii)	The Director (HR) of Prashant Ltd. cannot be nominated by the Board of directors as ‘occupier’ of the factory under the Factories Act, 1948 as it will give him vast control over the company.
(iv)	An employer can legally employ 30 female fish preservers in Ocean Fisheries Ltd., Mumbai for working from 6.00 PM to 12.00 AM night of the same day to avoid quick rotting of fishes.
(v)	A contract labour, which has worked for a period of 260 days in an establishment, has a legal right to be confirmed by the employer.