Aug-14 - galgotiasuniversity.edu.in · By Pravin Durai Plight of an ... development. Every training...

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Creating a Learning Culture

No change would be successfulwithout learning the new ways ofdoing things in a continuallychanging business context.

An article by Dr. Abinash Panda

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The choice is yoursEvery person has free choice. Hischoice determines theconsequences and no one canescape the consequences of thechoices made. It is the individual'sinternal choice, and not the externalcircumstances that ultimatelydetermine how life is experienced.Let's look at few such areasinvolving choices with theoutcomes so as to understand howimportant it is to make the rightchoice. An article by Dr. A. Jagan Mohan Reddy

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GENESIS: The birth of anew employee A well-planned on-boarding iscrucial to make your humanresource feel comfortable, so thatthey can deliver to yourexpectations.This article willenlighten you with somebreakthrough ideas for bringing inmore "personal touch" in the newentrant induction process. Anarticle by Abhishek Gavane

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Contemporaryreportingrelationships

A matrix organizational structurebrings together employees andmanagers from varied departmentsto contribute toward a commongoal. However, it is important tounderstand the benefits andlimitations of the matrix structurebefore implementing it in theirbusinesses.An article by John Ben

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- By Simran Oberoi

Rewards & Recognition

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Coping WithFrustration

Frustration is a result ofmotivation (drive) beingblocked to prevent one fromreaching a desired goal. It is astate of nervous tensioncaused by conflictingsituation. An article by Chinmay Kumar Podder

14 Employee retention:The varying dimensionsHigh employee turnover tends to costorganizations not just in terms ofmoney but heavily on time andproductivity.While providing healthbenefits, flexibility and work-lifebalance are essential to retainemployees, what is vital is to helpemployees find meaning in theirwork and keep them thoroughlymotivated. An article by P.B.S. Kumar

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Rewards structuringand segmentation

INTERVIEW

Skilling inProgress!DILIP CHENOY,CEO & MD ofNSDC in aconversationwith BM, tells uswhere they are inthe journey andhow NSDC plansto achieve thedaunting task.Excerpts from theinterview...

Job creation: A burning issue Quality jobs than just JOBS

- Rituparna Chakraborty

Where are we on skills - BNV Ramana

On-job learning is the key! -Ramesh Rajamani

Higher education shouldconcentrate on entrepreneurshipskills - Dr. B.V. Babu

Skills building : It’s time tointrospect - Dr. Rajeshwari Narendran

Skill gaps vis-à-vis employability - Prof. Bholanath Dutta

Why unemployment & skillshortage co-exist ?

- Sudeepto Mukherjee

R. Chakraborty

BNV Ramana

Ramesh Rajamani Dr. B.V. Babu Dr. R Narendran Prof. B. Dutta Sudeepto Mukherjee

Cover Feature

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Readers are invited to comment on articles published in BM through email at : [email protected]

RefreshingCover story on Change Management Studies is refreshing one. I am full in agreementwith your note that experiential learning through case studies is better to understandthe problems of managing change. Learning points at the end of the each case studyare comprehensive.

-Bhagavat DayalDifficult to achieveArticle on culture of trust is a good read, but in practical when people with diversethinking and interests work together in an organisation, it is very difficult to build aculture of trust, because there are always conflicting interests between organisationand employees.

-Mohan ChavdaMakes sensePooja Bansal’s article on collaboration makes sense. It is sure thatcollaborative approach brings effectiveness at every level and it can be achievedwithout much efforts.

-Depanshu GuptaEPFO: Accursed to messI agree and appreciate Sh. HL Kumar's article "Is EPFO so ignorant?" (BM, July, 2014)

but cannot share the contents led to his conclusion.No doubt, EPFO is lacking in legal expertise relatedto the EPF & MP Act, 1952 and various schemesframed there-under prevailing over decades, that iswhy a ruling or a judgement by the Supreme Court isnot under-stood properly and interpreted in theright way by the department itself and by thelawyers, with great respect to Sh. HL Kumar, asexpressed in the instant article.Now, let us come to the point. The provision obligingthe employer to pay contribution up to the salarystatutorily fixed is found in the Proviso to sub para(2) of Para 29. This is with reference to an enhancedrate of contribution (beyond 10 or 12% , as the casemay be). If an employee chooses to contribute on ahigher rate than the statutory one, the employer will

not be under obligation to contribute matching with that higher rate. Here is noreference of any higher salary that exceeds the statutory limit. There is anindependent provision which allows an employee to contribute on a higher salarywith consent of his employer, who, simultaneously undertakes to pay administrativecharges on that opted higher salary. An employer, there under obligation to paycontribution on an agreed higher salary under para 29 (2) which reads -"Thecontribution payable by the employee under the Scheme shall be equal to thecontribution payable by the employer in respect of such employee", and theemployers contribution is regulated with reference to Para 26(6).As such, the above referred Supreme Court judgement is not applicable uniformly toall such employers whose employees are enjoying contribution by the employer on ahigher salary by virtue of para 26(6) of the Scheme. Misconception about thatjudgement is to be corrected.Finally, the EPFO is also not capable of under-standing the things in time and in a rightway, to all these as an analytical approach and synthesizing the matter with referenceto a judgement and allows the things to mess, as happened unfortunately, in the caseof Education Institutes in the state of Rajasthan. In fact, in both the cases, departmentcould not plead properly. The EPFO HO should be able to be a light house in thematter of Educational Institutes in Rajasthan, so happens in the instant case too.

-Ram Niwas Bairwa, (Former RPFC-II)Covering basicsA nice article by simran , which fundamentally covers the basics of rewardmanagement in Indian organizations in the current context. However, you may like tomake one factual correction in this article. The Fringe Benefit Tax, which wasintroduced in Finance Act, 2005 was subsequently suspended in 2009, so none of thepay components today are governed by FBT, but only Income Tax Act (IT), whichgoverns the taxability of the Indian salary.

-Indranil Gupta



Questions by readers on variety ofproblems they face at work and answeredby Anil Kaushik Chief Editor. Look at it.These may also be of some help to you.46

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Latest from theCourtsLatest verdicts from different High Courts and SupremeCourt effecting employer employee relations.48

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When policiesdo not supportgood decision

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EVENT Report &

Correction : In July issue at page 17 name of thecompany “LAFARGE” was mistyped as Lagarge. Readers

are requested to read it as Lafarge.

Ex-Gratia can’t be claimed as of rightIn context with labour laws,ex-gratia is additionalcompensation given to the employees as declared bythe Management during festivals for instance beforeDiwali. Ex-gratia,as a favour, is the payment notcompelled by any right.An article by Gaurav Kumar

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By Pravin Durai

Plight of an IntelligentManagement Trainee



Latest economic survey of the country indicates that while employment growth hasbeen lower in 2009-2011, unemployment rate in India continued to hover around2%. The new Govt. has the biggest challenge of creating not only jobopportunities but also the numbers of quality jobs along with required skillbuilding. Both issues are to be handled together because only skill developmentis not the end goal.

The question is-from where jobs will come and how skill building is streamlined to meetthe Industry objectives. Creating new jobs is a crucial task and plays an importantrole in economy. The treasure of jobs is in small and medium industries. Informaland unorganized sector is also capable of creating job opportunities. Bigmanufacturing industries have inclination to go for automation rather thanabsorbing manpower. They are substituting capital for labour. In this back droppolicies can’t afford to ignore the small & medium industries.

Coming to skill building and employability,NSSO reports indicate that problem ofunemployment lies with educated youth andnot illiterate ones because this segment isready to opt for low pay jobs. Here, youth needto make informed choices about furthereducation, which could lead them toemployment and meet expectations of labourmarket. The disconnect is growing betweenthe needs of the employers and the skills thatare available in the market.

Industry should not be in wait and watchmode. They have to embark upon the

opportunities and be ready to absorb the vocationally trained workforce ordevelop them as per needs. Skill building has to perceived by the industry as anintegral part of HR initiatives.Setting up of sector skill councils is a right step in thedirection but things should happen fast. Not much contribution has come fromthese SSCs so far. All stakeholders need to seriously think and invest in skillsamongst the youth which means complete overhaul of education system closelyintegrating it with an effective apprenticeship regime because learning –by–doing and learning-while earning are the most powerful vehicles of skilldevelopment.

Every training module and provider needs to be assessed on the results in terms ofemployment being procured by persons trained and salaries they earn.The realitycheck of all efforts on skill building either through NSDC or SSCs will be to see howmany persons are placed in jobs.

We intend to make an effort to understand and comprehend the complexities of jobcreation, skill building and employability through the experts in this cover story.Also to find out the challenges and ways ahead to meet and resolve to convertthe challenge of huge population into growth opportunity.

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

Happy Reading!

Skilling is not enough

Chief Editor ANIL KAUSHIK

Associate Editor Anjana Anil

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

Hon’y Research LeadIndranil [email protected]

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Cover Featrue



Cover FeatureJobs and skill development is among the key driversof socio-economic growth and country has to facethis challenge of creating more and more jobopportunities for the huge workforce and

simultaneously keep building their skills.To understand the real problem and its solution, allactors of the talent supply chain must understand eachothers’ expectations and problems to bridge the gap.Besides, it is required that skill development agenda

should be further penetrated in to rural areas, as mostof the workforce in industry is required at entry leveland mass employment has to happen from smalltowns and rural areas.The cover story unfolds the divergent issues of jobcreation and skill building in next few pages….

Dr. B.V. Babu

Vice Chancellor, Galgotias University, Greater Noida

With the advent of mushrooming ofPrivate Universities in highereducation space in the country, thequality of education did suffer, andwith a result we are producing

professionals who are not equipped with requiredskills and knowledge. This in turn led to jobless

growth. Also, entrepreneurial culture took backseat in the University education system as

the numbers (in terms ofUniversities/Institutions) have

grown phenomenally withoutensuring the establishment ofrequired physical and intellectualcapital infrastructural facilities.

The basic purpose ofeducation is not just impartingknowledge as generallyperceived, but it is much morethan that. It is to make thestudents understandthemselves and to provideenough opportunities tothem for realizing theirpotential and that one thingin life which they love themost and passionate about.Given an unknownsituation, the studentpassing out from a formaleducation system(University/ProfessionalInstitute)should be in a

The author argues thatindustry-academiainteraction to increaseemployability needed tobring on higher andpractical level.



Higher education should concentrate onentrepreneurship skills

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Higher education should concentrate on entrepreneurship skills



position to look at the unknown situation fromdifferent possible perspectives and reach alogical conclusion. This means the focus ofeducation should be on developing innate skillssuch as logical & analytical skills, soft skills,etiquettes, communication skills, aptitudebuilding, etc. so that the students are corporateready after completing their formal education.These very skills should form a part of thecurriculum in a structured way withappropriate credits,delivered by professionaltrainers,to bring in seriousness among thestudents.

Industry-Academia interaction is anotherimportant aspect to bridge the gap betweeneducation and employability. 5-6 months ofInternship in an Industry (in the final year ofstudy) attempting to solve a real world problemthrough a project in the field should bemandatory to give that extra understanding offacing the real world challenges and scale upoperations. The challenges are to attract theIndustry to fund research in the Universities tofind solutions to their problems and work hand-in-hand which leads to a healthy relationshipbetween industry and academia. This in turnhelps the University to get their pre-final andfinal year students placed in Industry in Co-opprograms or summer student internshipprograms and give them an opportunity towork during summer or in the final semesterand the students are paid for their work.Students finish their studies after working inthe industry. It would be a win-win situation forboth the University and Industry, as thestudents get exposure to the industry and alsowill be financially benefited during theirsummer vacation/final semester, while theindustry gets benefitted through the workdelivered by the students.

Attracting quality faculty members is a bigchallenge the Universities across the countryare facing now. To reduce the attrition rate and

to establish a growth path for the facultymembers, the Universities should encouragefaculty members to contribute towardsresearch and consultancy by providing extratime, space and money for pursuing theirresearch interests. Focus on research ensuresthat the faculty broadens their base ofknowledge and enriches the teaching-learningprocesses by bringing value addition in theclass room teaching. It exposes the students tothe most current and pressing issues that aresocially relevant, technologically viable andcommercially feasible. The education impartedat the university is enriched by the directconduct of research by faculty members andstudents and in turn research is invigorated bythe energy and creativity of students byinvolving them in research projects taken up bythe faculty members.The aim is to becomemore holistic, connected and engaged in formand function, in teaching and learning, indiscovery and research, in outreach and inreach, in life and work, in different cultures, inadmissions policies, in governance and inorganizational structure.As the Universitymoves forward in exploring potential alliances,we must remain true to the values, principlesand ideals that distinguish institutions ofhigher education from commercial enterprises.The challenge in this arena is to strike abalance between mutually beneficialpartnerships and maintaining institutionalintegrity.Over the last decade, the pedagogicallanguage in the Academy has shifted inemphasis from a traditional "teaching model"(Teacher-Centric Learning Systems), with thetransmission of knowledge primarilyoccurring through a lecture format to a"learning model" (Student-Centric LearningSystems). The "learning model" encompassesmulti-dimensional, intellectual engagementinvolving interaction between teacher andstudent, student to student and student withinthe larger context of community. The

The Government should put policies in place to encourage the entrepreneurial culture among thestudents of a University system so as to make the students to be job providers rather than simply thejob seekers.

Idea in brief

1. Higher education system issuffering from quality facultycrunch.

2. Students should be providedentrepreneurship skills to turnfrom job seekers to job givers.

3. Skills development programsin higher education are neededat all levels.

Cover Feature

Software companies dramatically improved theirability last year to earn more revenue whileemploying fewer people, reflecting the majortransformation underway in a sector thathas created a new middle class in India.

While the development is good news forinformation technology companies, it isalso a warning sign for employees in thesoftware industry and for students looking tomake a career in an industry that used to hiretens of thousands of employees every year.Between April 2013 and March 2014, the ITindustry added only 13,000 employees for everybillion dollar of revenue, according to data fromsoftware industry grouping Nasscom. During theyear to March 2013, it needed 26,500 employees."We are moving up the value chain, getting moredollars for every hour of work. And moreautomation of existing work means we are hiringless and less to achieve the same growth," saidAchyuta Ghosh, head of research at Nasscom.From about 4 lakh employees in 2000, the IndianIT industry has grown to some 3 millionprofessionals and become the career of choice forgraduates in search of lucrative salaries and overseas posting.

While revenue has increased from $8 billion at the turn of thecentury to of $118 billion (Rs. 7 lakh crore) now, the pace of change intechnology and processes has accelerated in the recent past. Infosysand US-headquartered Cognizant have partnered with automationspecialists such as IPSoft while Tata Consultancy Services and HCLTechnologies have built automation tools in house. Business processoutsourcing firms are also increasingly moving to automate theirback-end processes. These companies are also focusing on higher-

value projects that call for specialised skills, wherenot only do engineers need to understand

their technology domain, but also thefunctional domain they are working in.

This focus on a highly skilled workforceclearly means fewer opportunities forthe over 1 million graduating engineers

every year "This has to happen becauseone way to mitigate the impact of a rise in

manpower costs is to try and decrease thenumber of person hours used," said GaneshNatarajan, CEO of Zensar Technologies, whichemploys 6,800 professionals.Among the top ITservices providers, HCL Technologies is so farproving to be the most efficient when it comesto revenue productivity. In 2012-13, itemployed 18,270 staff or every billion dollar inrevenue. Infosys required 21,202 employees,Wipro 23,480 and TCS 23,810 for every $1billion in the top line. Since the end of 2007,India's largest standalone BPO, Genpact, hasreduced the number of employees needed toearn $1 billion in revenue by over 10,000 to29,577. Vineet Nayar, a former CEO of HCL

Technologies, observed that while the improvement in revenueproductivity is not necessarily a good harbinger for the future,investments in incubating products and developing a pool of highlyskilled workers will be critical for success. "Indian IT is at a crossroadand has to rethink its core strategy to stay at the top of the value curveand not just the volume curve." For employees, the shift does notcome without its costs. Engineering graduates are facing stagnatingwages and fewer jobs as supply far out-strips demand as IT firms pickquality over quantity.

-(source: Economic Times)

While the improvement inrevenue productivity is not

necessarily a good harbingerfor the future, investments in

incubating products anddeveloping a pool of highly

skilled workers will be criticalfor success.



"learning-centered" approach to educationrequires an institution to create an environmentthat graduates students with well-developedintellectual skills in their field, a foundation ofbroad knowledge, effective written and oralcommunication skills, a strong ethical base, asense of civic responsibility, proficiency in the useof technology, a global perspective and a desire topursue life-long learning.

The Government should put policies in place toencourage the entrepreneurial culture among thestudents of a University system so as to make thestudents to be job providers rather than simply thejob seekers. Establishment of Centres forEnterpreneural Leadership, Incubation Cells,Technology Parks, etc. are pointers in thisdirection which require significant capitalinvestment by the University. Government shouldcome forward in sponsoring these centres byfinancing partially. The University shouldencourage the students and faculty members toorganize and participate in National levelEntrepreneurship Workshops & Conferences.

The emerging trends in higher education to facethe challenges, to provide entrepreneurial cultureamong the students for job creation andemployability, and to make the students corporateready by bridging the gap between the academiaand industry are: 1.Upgradation of education

system to international standards; 2.Broad basedholistic approach with several flexibilities tostudents; 3.Bringing in more courses onhumanities into curriculum; 4.More of Projectbased courses; 5.Case study based learningprocesses; 6.Continuous evaluation; 7.Researchand Independent study as a part of curriculum;8.Interdisciplinary approach & Systems approachin education system; 9.Soft skills & AptitudeBuilding as a part of curriculum; 10.Courses onEnvironment & Energy as Compulsory corecourses; 11.Bringing awareness and understandingon Professional Ethics & Social Responsibility;12.Emphasis on curiosity, engagement and passion;13.Evaluation of the mission of higher education;14.Increased competition for students; 15.Emphasison student competencies; 16.Increased awarenessof competing education systems; 17.Student trendsconcerning minority access, student debt, foreignstudents, and part-time students; 18. Managementtrends concerning planning, financing, marketing,student retention, and institutional leadership;19.Teacher and curriculum trends concern:minority and women employment, collectivebargaining, tenure and the graying professoriate,migrant faculty, faculty workload, occupationalversus liberal arts/general education, educationaldelivery systems, high technology, and response tocorporate training/degree programs.

The focus ofeducationshould bedevelopinginnate skills tomake youth jobready. This hasto start fromlowest level.

ITFunda:

Squeeze Jobs,Increase revenue

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