.

CONTENTS Chairman Message 01

Best Chapter Award 02

National Council Newly

Elected Team

03

Highlights of NATCON-2018 04

Student Business Quiz- 2018 07

Our Activities

Monthly Meetings 08

Monthly Video

Workshop

12

Inauguration of Student

Chapter

14

Members Corner

Members Achievements… 15

Corporate Social

Responsibility

15

Article On

Human Resources 16

Legal 21

NIPM Certification Course 26

Our next issue will focus on

Performance Appraisal

We look forward

your articles

on performance appraisal

for our upcoming issue of Bouquet

Magazine and please send to

nipmcc@yahoo.com

CHAIRMAN MESSAGE

Dear Members,

Greetings and best wishes for the season.

We received good appreciation and encouragement for the last edition

of Bouquet and I wish to thank you for the positive words for our last Bouquet – News Letter.

As you are aware that the last quarter was a very good period for our Chapter, as you have

witnessed the monthly meetings and other activities in a grand manner with prominent

speakers. All the meetings were well attended by our members in large numbers.

The National Biennial Election for 2018-2020 got over at our National Office. Mr. Vishwesh

P Kulkarni from Pune Chapter has been elected and took charge as National President of

NIPM. We take this opportunity to wish him and his team all the very best.

Pune Chapter organized the Natcon‘18 with the gathering of delegates from across the Country

and Asia Pacific. The event was well done with perfect planning, prominent speakers with

relevant topics. We extent our Congratulations to Pune Team.

With great pleasure I like to convey that Our Chapter has been Awarded as the 3rd Best

Chapter for the year 2017-18. On behalf of every member I extend hearty congratulations to

Mr. Rajappan, Chairman, M.H Raja, Hony Secretary Mr. D.L.N. Reddy, Hony Treasurer and all

the EC Members (2017-18) for their efforts in making ours as the 3rd Best Chapter.

We are working with MMA for a joint Certification Course on HR (Talent Management) and IR

(Organizational Discipline) and it‘s likely to be launched during October 2018. This certification

programme will be offered for working professionals (HR / Line Managers). HR professionals

up to 3 years experiences can benefit from this course and for Line managers the is no bar on

experience. The objective of running this certification course is to support working professionals

for their career progression. A nominal fee will be charged to defray the faculty honorarium and

other administration expenses. We are looking forward for your support for the NIPM-MMA

Certification Course by nominating and communicating to your team.

We aspire to make our monthly meeting more enlightening with interested and relevant topics.

You can come forward with interested topics and suitable speakers too for our Monthly

Meeting. As our chapter has lot of eminent and experienced professionals, it is good to share

your thoughts and experiences through our News Letter for the benefit of larger group. Do send

in your contributions.

We have seen that the State of Kerala passed through a difficult time and needs everyone‘s

support. To show our gesture of empathy our Chapter and along with the contribution made by

members, is contributing Rs.50,000/- towards Kerala CM‘s Flood Relief Fund. I wish to thank

those members who have come forward in donating.

We should aspire in making our NIPM Chapter an association for professional sharing, bonding

of great minds and a vibrant thinking. Keeping that in mind we plan to widen our activities in

the near future and make the chapter more relevant to larger HR Professional. Please do extend

you support with ideas, contributions and participation in all activities we do and in creating

momentum.

I once again convey festive greetings to every one of you and your family.

Warm Regards,

M.H. Raja

Chairman, Madras Chapter

EDITORIAL TEAM M.H. Raja

K. Ganesan

M.S. Balajee

K.S. Chandru

NIPM National Headquarter: https://www.nipm.in/ | Madras Chapter: https://www.nipmmadras.com/

CHAIRMAN MESSAGE

BEST CHAPTER AWARD

Our Chapter was awarded the 3rd Best Chapter Award at Natcon'18 Pune.

Thank you all for making this possible and looking forward your support to take our

Chapter to greater heights

Thanks to all support given by all EC, Permanent Invitees, Staff, Manager, Life, Corporate, Associate and Student

Members for the 3rd Best Chapter Award for the year 2017-18 approved by the National Council of NIPM.

Management is doing things right; leadership is doing the right things.

02

NIPM – National Headquaters Newly Elected Team of National Council for the term 2018-2020

President

Vishwesh P Kulkarni

National President

Pune Chapter

Vice President, Secretary & Treasurer

Debasish Ray

National Vice President

Visakha Chapter

Dr. Pradeep Kumar Sahu

Hony. General Secretary

Orissa Chapter

Shridhar Vasant Vyawhare

Hony. Addl. General

Secretary

Nashik Chapter

Anand Suresh Toal

Hony. Treasurer

Nagpur Chapter

Regional Vice Presidents

Radha Shyam

Mahapatro

Regional Vice President,

(ER)

Ranchi Chapter

Anant S Dessai

Regional Vice

President, (WR)

Goa Chapter

U. Chittodu

Regional Vice

President, (CR)

Hyderabad Chapter

Dr. Subir Bikas Mitra

Regional Vice

President, (NR)

Delhi-NCR Chapter

Ashoka T

Regional Vice

President, (SR)

Karnataka Chapter

National Committee Members

Saptarshi Goswami

Member (ER)

Asansol Chapter

Brij Mohan

Prasad

Member (ER)

Ranchi Chapter

Manoj Gupta

Member (WR)

Aurangabad

Chapter

Sitaram Ganpat

Chavan

Member (WR)

Raigad Chapter

Dr. P.R.K Raju

Member (CR)

Godavari Chapter

Ranjeet R Pande

Member (CR)

Nagpur Chapter

Sanjay Kumar

Wadhwani Member

(NR)

Delhi-NCR Chapter

Capt. Naresh K

Kakkar

Member (NR)

Punjab Chapter

Johnson Mathew

Member (SR)

Kerala Chapter

Gopalakrishna

Sastry

Member (SR)

Mysore Chapter

Winners don’t do different things. They do things differently.

03

Highlights on NATCON 2018 – PUNE “MANAGING FUTURE OF WORK & WORKPLACE”

Note prepared by: Dr. S. V. Bhave Director (HR & IR),

Bharat Forge Ltd -2018

The conference started on Friday, 28th

September 2018, with welcome address by Mr.Vishwesh Kulkarni,

Chairman, Managing Committee, NATCON 2018, followed by Conference Theme presentation by Dr.S.V.

Bhave, Convener of NATCON 2018. Dr.Bhave mentioned in his address, that the Conference would focus on

challenges as to how to manage future work and realign work places. He further emphasized that

advancement in technology had started interrupting all sectors and business stakeholders had started

experiencing its impact during last few years. Inspite of these challenges, jobs will not get eroded but jobs

will be available with new vigour requiring new competencies too. HR Professionals are therefore required to

be more pragmatic and are expected to work seriously towards developing culture, mix of skills, focus multi-

disciplinary problem, think of developing internal leadership and collaborating closely with academia.

Dr.Bhave stressed the need of understanding the global pressure – keeping in mind the Indian context too. He

further mentioned that sub-themes of the conference are designed in such a way that expectation of delegates

related to managing present, future work and work place will be met with. He then mentioned that NATCON

committee had invited 32 National and International Speakers, who will deliberate on eight sub-themes during

the Conference. This session was also addressed by Mr.Somesh Dasgupta, National President of NIPM.

The inaugural session was addressed by Dr. Abhay Firodia, Chairman, Force Motors Ltd., Pune. Dr. Firodia

in his keynote address stated that, organization culture is the most important attribute which will help in

strengthening the working systems. In his address he gave various Indian and international examples related

to managing present and future work and workplace. Dr. Firodia also stated that employees, employers,

judiciary, bureaucracy and academia, need to shoulder their responsibility in a holistic manner to support

growth of Indian industries, so that required competencies will be earned to fight global competition.

Considering Indian scenario, he also stressed the importance of “Global to Local and Local to Global”.

Mr. Prakash Javadekar, Hon. Minister of HRD, Government of India, was the Chief Guest, who addressed the

conference through video conference.

Mr. Javadekar emphasized the need for development of Human Mind to nurture them as future industrialists

and also stressed the importance on Entrepreneurship. He also stated that Indians have the capacity and

capability to fight global challenges. However, they need to tune their mind set to change the challenges

thrown by other countries. He also gave examples – stating that in all global corporates Indians are either

CEOs / CFOs / Business Strategists. If Indians can help strategizing European corporates, they can very well

do the same for Indian Corporates too.

Cmde.Rakesh Anand, Hon. Chairman, National Organizing Committee of NATCON 2018 and CMD

Mazgaon Dock Shipbuilders Mumbai, also addressed the audience.

There were four sessions on the first day.

The sub-theme of the first session was “The future of work – Pros and Cons”, which was chaired by

Mr. Shrikant Lonikar and speakers were Mr. Ramesh Shankar and Ms. Akshaya Shekawat.

The speakers stressed on steps to be taken in future for nurturing of talent. Stress was given on failure

analysis with the help of various presentations. Ms. Shekawat gave various examples from IT segment, where

as Mr. Shankar gave examples from manufacturing sector. The session was concluded by Mr. Shrikant

Lonikar stating that future of work in India is very bright, however, if enough care is not taken by younger

generation, probably we may see adverse impact on industrial development.

Success in management requires learning as fast as the world is changing.

04

The title of the second session was “Learning from Future – Can Learning be Preempted? A way

towards developing Performance Culture”. This session was addressed by Mr. Sharad Gangal as a

Chairman of session followed by Prof.Ajantha Dharmasiri and Mr. Stephane Michelin as speakers. This

session emphasized on the need to understand linkage of individual performance and that of business from

various learning modules and also deliberated on how to build organizations with the help of internal and

external learning, keeping future in mind. The speakers also stressed on the importance of performance

sustenance and role of various stakeholders in skills and capability development.

Important takeaway from this session was the need for organizations to leverage the internet penetration and

take learning to the next level anticipating business requirements for next ten years.

The title of the third session was ―Role of Technology in Arriving to Sustainable Business Development &

its impact on Present and Future Employment”. The session was addressed by Mr.Arun Mote as a

Chairman of the session, followed by Mr.Shahvir Irani and Mr.R.Venkatanarayanan as speakers. The session

stressed on the importance of emerging technology and also advised delegates to encash the learning with

connecting with inhouse and market driven business development process. Speakers also stressed that the

technology should be considered as performance culture and also deliberated at length the process

highlighting various examples leading to involvement of various stakeholders in arriving to sustainable

business development. It was also stated in this session that sometimes one can experience the negative

impact to begin with, however in the long run use of technology will be considered as a boon and

developmental catalyst.

The title of the fourth session was “Is Academia Competent enough to support Corporate as enabler to

fight global competition”. This session was addressed by Dr. Ambitabh Deo Kodwani as a Chairman of

session followed by Dr. Anil Sahastrabuddhe, Dr. Raghunath Shevgaonkar and Dr. B.B.Ahuja. The speakers

in this session spoke on the role of academia in building future India and also stressed on short comings in

present teaching methodology. They also stressed on seriousness in approach of collaborating between

Industry and Institutions, with a view to ensure development of learning system for the benefit of industries.

It was also stressed by the speakers to search alternative teaching methods using retired professionals to

ensure application based knowledge in academic institutes. Reference was made of German teaching system

and response of Government in maintaining continuity in re-shaping the education system focusing industries

and business as a focus point.

The day one ended with NIPM‘s Convocation Ceremony with address by Dr.Nitin Karmalkar, Vice

Chancellor, Savitribai Phule Pune University.

DAY TWO

There were four sessions on the second day.

The title of the first session was “Winning ways to Build and Nurture the Future Leaders”. This session

was addressed by Mr.Suhas Baxi as a Chairman of session followed by Ms.Tania Chatterjee, Mr.Mark Sinar,

Mr.Raman Nanda and Mr.Gajendra Chandel. In this session, speakers dealt on different ways of effective

succession planning and its importance for leadership development.

The stress was also given on inculcating leadership as a hunger and further need to fill the gap of performance by

nurturing leadership with inhouse talent instead of hiring talent from outside. Speakers also dwelt on the

requirement of inhouse head hunting of talent and nurturing them to fill the gap for future business needs. In this

session various examples were cited by speakers and the role of HR professional was also discussed as an

important stakeholder in developing business leadership.

The title of the second session was “Role of Judiciary/Government and Unions in Building and Sustaining

Performance Culture and its correlation with Future of Workplaces”. This session was

addressed by Adv. R.Y. Joshias Chairman of session followed by Adv.Jamshed Pesi Cama.

In this most lightening session the various landmark case laws from Supreme Court and High Courts were cited as

examples by both the eminent lawyers. The point was deliberated as to how the role of Government is responsible

for ensuring availability of future jobs vis-a-vis the role of union.

Most of what we call management consists of making it difficult for people to get their work done.

05

The question was raised by speakers if union functionaries are responsible for ensuring sustained organization

culture or they are only interested with the responsibility of putting charter of demand. The advocates stressed

the role of HR in collaborating with Government, union and in ensuring availability of future of work. Both

advocates have opined in the session that judiciary in these days appears to be focusing on balanced

judgement, keeping in mind arrival of technology and the need of protection of industry with a view to protect

the job. Point was also stressed on fresh look at the policies - that were required to be developed for business

sustenance purpose.

The title of the third session was “is approach of other countries difference in building performance”.

This session was addressed by Dr.T.V.Rao as a Chairman of session followed by Mr.Md.Musharrof Hossain,

Prof.Dhamika Fernando, Mr.Somesh Dasgupta, Mr.David Li Chi-Ming, Mr.Aresandiran J. Naidu, Mr.Areff

Salauro and Ms.Rose Mary. This session was specially designed to understand the various methods of

cultural integration followed in other countries and further to understand how those countries are focusing

differently then what we do in India. The speakers for this session were from Australia, New Zealand, Hong

Kong, Malaysia, Thailand, Bangladesh, Sri Lanka and India. The speakers gave various examples from their

countries and steps followed by them in building performance culture. Speakers also mentioned that

performance culture should be in born. There should visible efforts on the part of HR to be build and sustain

the organizational culture. They gave application based examples from respective countries and emphasized

on the impact of global scenario connected with organizational development processes followed in respective

countries. Speakers also gave examples of role of judiciary, government, unions and HR Professionals played

in respective countries in development of performance culture and its impact on talent acquisition.

The title of the fourth session was “CEO as CHRO”. This session was addressed by Mr.Santosh Panickar as

a Chairman of session followed by Dr.Ujjal Bhatacharyaji and Mr.Joseph Thomas. The speakers for this

session had started their career as Human resource professional and eventually reached to the position of

Chief Executive officers of their respective organizations. Therefore, each one of them dealt the session on

the basis of their personal experimentation on managing future of work and workplace. Speakers stressed on

the need to have HR Policies and also raise the question on whether HR Policies are influenced by CEOs of

the organization. Speakers stressed on the development of need of nurturing the art of re-positioning human

resource professionals in VUCA environment. Experts from this session attempted to make their point -

stating that each stakeholder of the organization is an HR Facilitator and to be considered as a Catalyst agent.

Speakers went on stressing on the need to develop seriousness of transforming environment of Unionism into

environment of collaboration. The deliberation was made on a point “PEOPLE FIRST OF BUSINESS

FIRST”.

The valedictory address of the Conference was given by Dr. T.V. Rao, Ex-Professor – IIM Ahmedabad –

Presently Chairman, TVRLS Ahmedabad. Dr. Rao in his valedictory address appreciated the entire

proceeding of NATCON 2018 and considered this conference as a bench mark in respect of quality learning.

He stressed on the need of giving importance to lower most person in the organizational hierarchy and further

stressed that each individual should get importance in the organization, based on delivery of his work related

to quality. Dr. Rao also mentioned that we should not consider technology as a threat but should take it ―with

respect‖ as a tool for making way of easing the industrial life and appealed to the audience to face the change

like a brave soldier and aim for success which will take India to winning path and make a social life more

stronger than what we are experiencing today. Dr.Rao appealed to all HR Professionals to shoulder the

responsibility as a change agent for culture building and its sustenance in their respective organizations. He

further stated that Human Resource is a societical function and therefore HR Professionals need to consider

individual human beings as an important part of the society.

The two days conference was attended by 1163 delegates from India and few Asian countries. The NATCON

2018, the 37th

Annual National Conference held at Pune, Maharashtra India will be considered as a bench

mark for its organization, overall arrangement, quality speakers, and excellent time management with holistic

professional approach.

Management by objective works - if you know the objectives. Ninety percent of the time you don't.

06

As part of our National Conference- NIPM NATCON 2018, conducted Student Business Quiz- 2018 at chapter level

on 27-07-2018 held at Loyola College (Yeddanapalli Hall)

Sterling Road, Nungambakkam.

We have received very good response from all the colleges (i.e) MSSW, WCC, XIME, Loyola, SA Engg. college, DG Vaishnava,

SSN school of management, Easwari Engg college and there are 31 teams (2 students / each team) participated. The result-winners

S. Ravathi & M.Ramya, DG Vaishnava College and 1st runner up Sherin Joseph & R. Akshaya, MSSW.

Unless commitment is made, there are only promises and hopes... but no plans.

07

OUR ACTIVITIES Monthly Members Meeting July 2018

Rebuilding Industrial Relations - PRICOL Transformation Journey on 20-07-2018 by Mr. R. Malar Vannan Fernnado, Chief

People Officer, Pricol Limited, received memento from Mr. Sellamuthu, GM-HR, Ashok Leyland.

The best way to predict the future is to create it.

Had a great time of getting enriched on how all of us to learn in strengthening Industrial Relations to bring

about Industrial Harmony and peace at Pricol Ltd,Coimbatore from no less a person than Mr.Malar

Vannan,Chief People Officer of Pricol Ltd Leading Manufacturer of Automobile Components and Solution.

Kudos Mr.Raja ,President of NIPM ,Chennai chapter for having organized a evening lecture meeting on the

very vital topic for today‘s scenario REBUILDING INDUSTRIAL RELATIONS-PRICOL

TRANSFORMATION JOURNEY.

How Mr.Malar Vannan ,who joined during September 2015 as Pricol Ltd ,Chief People officer, transformed

Pricol Ltd ,Coimbatore by fostering into a harmonious industrial relations Organization from being in a highly

volatile and violent Industrial atmosphere due to a death of Mr.Roy George, VP HR on account of workplace

violence happened during the 2009 at Pricol Ltd,Coimbatore.

Mr.Raja ,President of NIPM ,Chennai chapter thoughtfully invited Mr.Malar Vannan ,Chief People Officer ,of

Pricol Ltd,Coimbatore to share his valuable experiences on how he had transformed Pricol Ltd ,Coimbatore

into a very conducive and harmonious environment from being a highly volatile and violent atmosphere and

gave a excellent presentation on the most important topic of today‘s scenario REBUILDING INDUSTRIAL

RELATIONS –PRICOL TRANSFORMATION JOURNEY.

He informed every one present at the venue of Hotel Savera ,Chennai ,last evening, that before joining Pricol

Ltd, Coimbatore he consulted his wife whether to join a company at Coimbatore which was known for its

rebellious Union and he said that his wife was instrumental along with Mr.Dominic,of Ford who encouraged

him to accept this very challenging assignment of Chief People Officer of Pricol Ltd,Coimbaore.

08

Efficiency is doing things right; effectiveness is doing the right things.

Mr. Malar Vannan went further, that on joining Pricol Ltd ,Coimbatore in September 2015 the situation, felt

that Union members were very cold to him whenever he tried to strengthen cordial relationship with them

and they were not receptive to his initiatives of ushering in peace and to build harmonious relationship in

terms of protecting the welfare of the employees and also to improve and some of the rebellious members of

Union kept following him to where ever he went within the factory premises ,to threaten him to scare him to

quit.

He said that whenever he tried To reach the union office bearers, to strengthen relationship with them, they

closed the doors preventing him to meet them.

He went further to inform us at one stage he was contemplating to quit Pricol Ltd 3 months after joining

since he felt that the industrial atmosphere at Pricol Ltd was still not very conducive for him to make sincere

attempts in convincing the rebellious Union members to give importance to productivity and to protect the

welfare the highly committed employees to enhance and refurbish the Brand image Pricol Ltd,

Coimbatore, after the death of VP HR during the year 2009 enabling Business transactions to commence

again in a smooth manner to its past glory and for customers to interact in a smooth manner again to resume

their business with Pricol Ltd, Coimbatore..

He further said that his earier employer had informed him that if he was not still happy with Pricol Ltd , he is

most welcome to rejoin them again.

But with lot of resilience and with a burning desire and passion in his mental frame he had decided continue

with Pricol Ltd, to take it as a challenge to gain a valuable experience of transforming himself in coming out

with a different strategy to rebuild Industrial relations ,to script a new transformation journey for Pricol Ltd

,Coimbatore in becoming a people friendly company.

He further said that we should be very caring and extend warmth ,empathy while interacting with

Such rebellious union and how by adopting to promote Cordial Employee Relations ,enhance internal

Customer services ,retain key talents, Nurture skill and competency among available talent, Institutionalize

TEI Activities ,Renewal of Spirit across Pricol Ltd.

Then he said on how his strategy on My Performance determines my prosperity. (My Pricol,My Pride, My

Passion and My Performance ) brought about a transformation of making every one at Pricol Ltd,

Coimbatore a highly committed employees .

He concluded saying that In view of this transformation, Pricol Limited, has been honoured with the

‗National Award for Outstanding Industrial Relations‘ for the year 2016 – 2017 by All India Organisation of

Employers (AIOE).The award was handed over by Mr. Santosh Kumar Gangwar, Hon'ble Minister of State

for Labour & Employment (IC), Government of India.

Kudos to Malar Vannan ,Chief People Officer ,Pricol Ltd, Coimbatore for having given , a very insightful

,Scintillating presentation and it was indeed great to hear from him Pricol Ltd had rebuilt their industrial

relations to strengthen it further to usher in Industrial harmony and peace enhancing Thereby the brand

image of PricolLtd, Coimbatore to its past glory. Summing up by Mr. N.C. Balachandran.

09

Monthly Members Meeting August 2018

Chennai chapters of NIPM & ISTD jointly hosted a special meeting on 27-08-2018 to felicitate Dr. R. Karthikeyan for being

elected as National President - ISTD for the Third Consecutive Term and he shared his experience GOOGLE EXPERIENCE &

GLOBAL NETWORKING. Mr K Pandia Rajan Hon'ble Minister of Tamil development, Culture and Archaeology, Govt. of

Tamilnadu, and Dr. R. Karthikeyan honoured by Mr. M.H. Raja, Chairman.

Monthly Members Meeting September 2018

Mr K.Pandiarajan, Minister for Tamil Culture apart from felicitating Dr.Karthikeyan, on becoming a National

President of ISTD again, said that today all HR Professionals must give importance to Learning and

development since the business is becoming very disruptive today . So HR Professionals must gear up

Learning and development activities at a faster rate enabling employees to learn and adapt to Disruptive

Business landscape in absorbing themselves in emerging technologies and work on a collaborative manner to

serve the customer externally in a different manner. He stressed on every HR Professional to move on to gear

up to change management and exhort the teams of Organization to collaborate in adapting themselves to new

disruptive Business landscape. Summing up by Mr. N.C. Balachandran.

10

The art of effective listening is essential to clear communication, and clear communication is necessary

to management success.

Discussion on ―Art of Talent Management‖ on 20-09-2018 by Mr. Bikram Nayak, Head Talent Acquisition,office of CEO

& MD, L&T, Chennai, receiving momento from Mr.K. Victor

Found his presentation very interesting and intellectually stimulating one . I have always been very curious by the

title Head Talent Acquisition and Talent Management and always very passionate in learning about talent

acquisition strategies. All I understood was how we should productively engage our employees (Very interesting

for me, how to transform our work environment interestingly nurturing one to enable the employees that they are

encouraged and motivated to keep leap frogging their learning curves further and further . I feel strongly that

before we start focusing on how we should transform our employees highly talented , we should conceive a very

interesting CULTURE strategy making every employee highly motivated and encouraged by the organisation. In

such an organisation one can see lot of passions in every employees mindset making an organization to enjoy

competitive advantage over other organisations. The atmosphere of work environment to be conducive and

supportive to nurture and harness talents in every employee . Mr Bikram Nayak presentation on the topic the art of

talent management was not only very power packed ,but highly insightful having created a huge impact on those

present at the venue of Madras Management Association, Chennai yesterday . He was delving not only on how to

groom senior manages to move on to DGM, GM, Vice President Construction projects nurturing and harnessing

their talents ,but also on their strategy about Leadership Development. He started his presentation how Cricketer

Sachin Tendulkar became a talented batsman and famous cricketer ably coached by his elder brother ,Ramakant

Archerekar and mentored by Sunil Gavaskar transforming him to be a legend in Cricket. Then he went on to say

that our Indians beat Pakistan in the recently held Asia Cup tournament happening at Dubai and Abu Dhabi. He

said Indians could beat means that they have become highly talented team now after getting groomed and nurtured

by the Coach Ravi Sastri and his team in projecting them to be extraordinary winning team to play high quality

cricket match whenever they play against Pakistan . Then he said on what was L n T Talent Management strategy

in grooming and nurturing middle levels managers to move on to GM and Vice Presidents levels in managing

huge Construction projects . I was very happy to learn from him how an organization resort to Succession

Planning from the middle levels of management to top management. I got stimulated when he delved in detail

their leadership development. Kudos to NIPM for having organized this very interesting lecture on the art of

talent management which is very very essential today in the midst of Disruptive Business Environment across

India . Kudos to Mr Raja, President of NIPM and his team for having organized this presentation from L n T

Construction which was quite intellectually stimulating one . I always used to be in awe of the brand Larsen and

Toubro company during the 1980 and after listening to Mr Bikram Nayak, Head Talent Acquisition of L n T , I

feel all of us should have a brief stint in working with such reputed companies like Larsen and Toubro. Summing

up by Mr. N.C. Balachandran.

11

Leadership is working with goals and vision; management is working with objectives.

Monthly video workshop jointly held with Madras Management Association

July 2018

Discussion on ―The Art of Interviewing‖ on 17-07-2018 by Mr. Krishnan Ravishankar (Harrison Assessments-CP) Architect-

Behaviour & Performance Optimization, Aim & Succeed.

August 2018

Discussion on ―Conflict Resolution A Win-Win Approach‖ on 14-08-2018 by Mr. Ragesh K.C, Principal Consultant-Hale Human

Capital, receiving momento from Mr. A. Aravaamuthan

12

Management's job is to convey leadership's message in a compelling and inspiring way. Not just in

meetings, but also by example.

September 2018

Discussion on ―Managing Human Resource: High Performance‖ on 19-09-2018 by Mrs. Priya Gourishankar Menon,Head-

Learning and Development,Matrimony.com Ltd, receiving momento from Mr. A. Aravaamuthan

Never mind your happiness; do your duty.

13

Inauguration of Student Chapter Inaugurated student chapter at MBA department, Ethiraj College for Women, Chennai on 25

th September 2018.

Welcome address by Dr. N. Gomathi, HOD Management studies. Inaugural address by Mr. M.H. Raja, Chairman, NIPM

Madras Chapter.

On this occation Mr. T.A. Mathew Gunaseelan, Associate Vice President HR, Indo National Limited, spoken about HR and

recruitment trends.

Our special invitee Mr. Rana Roy, Regional Business Head, GainInsights Solutions Pvt Ltd, spoke about Analytics & Metrics.

Rejection is an opportunity for your selection.

14

Members Corner Members Achievements…

Mr. T.A Mathew Gunaselan receiving Most Innovative

HRLeaders from Asia Pacific HRM Congress 2018

Dr. A.V Sivarama Prasad receiving Life time Achievement

Award from Mr. K. Pandia Rajan, Hon‘ble Minister, Govt of

Tamilnadu.

Mr.B.Venkataramana has been confered

―Most Innovative HR Leaders‖ by HRD Congress.

CORPORATE SOCIAL RESPONSIBILITY

As part of our Corporate Social Responsibility, NIPM madras chapter and life members of our association

generously donated Rs. 50,000/- (Including member‘s contribution) towards recent Kerala Flood Relief

Fund.

The Following Members Contributed to the relief fund

M H Raja A S Girish M Rajamani

T V Subba Rao T.A Mathew Gunaseelan R Ramasubramani

M S Balajee Ramesh Srinivasan S. Thangavel

M C Rathnakar S. Nevil Rayan

K.S Chandru P V Vasanthakumar

Once again we are thank our members for generously contributed to the Kerala flood relief fund.

Start with the end in mind.

15

Article | Human Resources HR Challenges and Competencies in the Dynamic Environment A. Aravamudhan Senior Consultant

The Constant Shifts and Changes In the Contemporary Business Environment are having a profound effect on

Organisational I performance and effectiveness. Corporates are facing Challenges to their sustainability and

profitability due to risks emerging from different directions. This calls for Changes In Business Models and

key Business Process. Some of the Contemporary Business thinkers have articulated that It is not uncertainty

alone that Continues to paralyze the Corporates but many Leaders find It difficult to Cope up with the

Changes due to their people not adhering to values, ethos, resistance to align with the Organizational

Objectives and not displaying Passion to achieve excellence. This Demand New Competencies from Leaders

particularly to those who are responsible for People Processes.

Every Organisation Can easily secure Capital, Technology, Machinery, Material, and Market from anywhere

and these Resources at best Can Provide Transitory Advantages but its capable and committed people only

Can give Lasting Advantage. Today, Ability and Agility to Cope with Changes, dealing with Volatility,

Uncertainty, Complexity and Ambiguity (VUCA) have become very relevant.

In this Knowledge and Creative Economy, Since knowledge resides only with People they are the providers of

Competence and they only Can build the required Competitiveness and Organizational

Capability to succeed and survive In the years to come. Hence, Expectations from Leaders responsible for

People Processes have certainly changed today. Leaders today have to connect more with People, take efforts

to build a performing Team and engage the People to the corporate objective.

Organisations now need to achieve Higher Levels of Business excellence because: When an Organization

wants to create a Strategy driven Organization only its People Will Drive the Strategy. When an Organization

creates a system driven Organization, its People Will Operate the system. When an Organization build a Value

driven Organization Only its People are the custodians of Company‘s Values. In a Culture driven Organization

only its. People Develop and Sustain the Culture. In a Crisis ridden Organization only ,People Can Manage the

Crisis When all other resources Can be acquired or copied easily by the Competition, an Effective well

nurtured HR Culture Can make an Organization Unique and Special. This cannot be imitated or copied and act

as the driving force for the Sustained Success.

Hence there is a compelling need for an Effective Strategy to manage the Human Resource. For this a Leader

needs to: To Identify the Present and future Challenges of HR To evolve Policy Guidelines Enforce Coherent

Execution to meet the HR Challenges.

HR - Challenges to be addressed

Building A strong Leadership pipeline Continuous validation of Knowledge and Re skilling Absorbing and

Adapting Technology in the HR- Processes Changed composition / Profile of Employees Managing

Diversity and Millennia‘s Sensitivity to People Egos and Emotions Need to Shift from Conflict of interests to

commonality of interests Erosion of Value systems and Widening Trust Deficit Transforming Entitlement

Culture to Engagement Culture Our HR Strategy Should constantly Address these Challenges and New HR

Competencies to be developed.

Needless to mention that Leaders Can No longer rely on the factors that so far helped them to perform and

Excel In the past. They also need to Identify What the Employees Should be doing differently with higher

degree of Competence and Commitment to meet the Changing requirements of the Business and HR Managers

must facilitate this.

Rank does not confer privilege or give power. It imposes responsibility.

16

Article | Human Resources Communication – Gateway to Managerial Effectiveness N. Muralidharan, HR Consultant / Trainer, Psychologist – Counsellor

Needless to mention that Leaders Can No longer rely on the factors that so far helped them to perform and

Excel In the past. They also need to Identify What the Employees Should be doing differently with higher

degree of Competence and Commitment to meet the Changing requirements of the Business and HR

Managers must facilitate this.

To Sum Up:

Since the Present trend is to outsource most of the HR Processes which are of Transactional nature, HR

Managers Can now Focus more on the Transformational Role to Change the Mind set of People and prepare

them to initiate Changes to face the Emerging Challenges. To achieve this HR Managers must peruse their

efforts to acquire Capabilities of Initiative, Creativity and Passion which are grouped as Higher Order

Capabilities by the renowned Business Thinker GARY HAMEL In his seminal Book FUTURE OF THE

BUSINESS observes:

"If we do not Change Our Traditional thinking and validate Our Knowledge and sharpen Our Skill to keep

pace with the Industry Changes, we are sure to become obsolete and thrown out of the track and get relegated

to the level of Bystanders."

The Present is for those who are Smart and the Future is for those Who are both Smart and different. As HR

Managers let us be proactive and Win the Future.

In one of the organisations I worked, I went to the factory to conduct a training programme for our

executives. I told the security staff at the main gate that I am coming from the Corporate Office. He

responded to me ―This is not Corporate Office, this is factory‖. The irony was that I had gone there, to

conduct a training programme on ―COMMUNICATION SKILLS‘ and I narrated this incident to the

executives who were part of this programme, as an example of what happens when we communicate/listen

and the scope for improvement.

In the success tool-kit for managers the critical role of communication skills need hardly be over-

emphasized. All managerial functions – be it Planning, Organizing, Directing, Control, are impacted by

communication. In the realm of HR processes, sans effective communication, we have only jargons/platitudes

that do not deliver results on the ground.

First things, first. A man walking on the street asked a passer-by ―where does this street lead to‘? The

passerby asked the man ―Where you want to go‖. The man replied ―I don‘t know‖ Then the passerby told

‗Then it doesn‘t matter which road you take‖. In my experience with organisations wherein I have interacted

with employees at different levels, I find the clarity of goals in communication is a formidable challenge and

needs conscious planning and effort for achieving significant levels of improvement. Many a time the goals

are not well defined, does not take into account the needs of stakeholders leading to ever widening gulf in

understanding between Managers and employees.

How do we narrow this gap and build bridges of understanding? For the costs in terms of employee morale,

productivity and trust are too high to gloss over or give a lip service to addressing this issue. A diagnosis of

hotspots in HR/IR would reveal the derailment of communication process over a period of time, and

excellent organisations have established a climate of trust by focussing on employee communication, through

shared values.

No great manager or leader ever fell from heaven, its learned not inherited.

17

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TO OUR NEW LIFE

MEMBERS

Vijay Kaliyur Mannar

A. Anbu

B. Premnath

R. Prem Kumar

How do we narrow this gap and build bridges of understanding? For the costs in terms of employee morale,

productivity and trust are too high to gloss over or give a lip service to addressing this issue. A diagnosis of

hotspots in HR/IR would reveal the derailment of communication process over a period of time, and

excellent organisations have established a climate of trust by focussing on employee communication, through

shared values.

Communication is :

Sharing /Transferring information, thoughts, ideas, values to another person/group.

Bring people on a common page for organisational effectiveness

Process of seeking diversity of views and derive the benefit of creative ideas in decision making.

Building bridges of understanding and trust between management and employees.

Communication is not:

- Exhibition of one‘s knowledge to flatten others‘ ego

- What the communicator thinks he has communicated

- Just effective power point presentation with high sounding jargons

- Just fluency in language and peppered with lot of technological embellishments.

-

What matters is the connect , both at cognitive and emotional level between people, and this is facilitated by

face to face direct communication, and when both communication/listening roles are well understood.

This brings us to stark reality that many a time we don‘t check whether the communication has reached the

target audience, as intended. This calls for an understanding the audience, their knowledge level on the topic

of communication and their needs. They have to receive, accept, understand and act on communication

received. Then only communication cycle gets completed.

The communicator has the onus to plan his communication well by focussing on the end goal, using

appropriate medium and doing a prior research of target audience needs. The dictum “COMMUNICATION

IS NOT WHAT THE COMMUNICATOR HAS COMMUNICATED BUT WHAT THE LISTENER

HAS UNDERSTOOD “gives us deep insight into the process of communication.

Communication is not a monologue and it needs a proper feedback from listeners to sustain and improve its

effectiveness. Active seeking of feedback and encouraging two way communication by Managers is a key

element for building a climate of trust in organisations.

Listening is other side of communication coin, albeit often not well understood. People are asking the question

―What is in it for me?‖ and organisations need to train managers on delivering value through communication.

People see what they want to see and hear what they want to hear. There is perceptual selectivity in

listening. Many a time we evaluate the communicator rather than the communication. Managers need to be

good listeners, and develop empathy, and be open and receptive to ideas.

To sum up, Communication is not just about knowledge/skills but is also a behavioural competency. Managers

have to be trained to be aware of their Behavioural Blind spots in communication which are directly related to

their personality. They should cultivate the practice of being open and honest in communication and be a good

listener. The listening involves focus on the communication in a non-judgemental manner, asking questions to

clarify, do empathetic listening and stop talking.

All organizations are perfectly designed to get the results they are now getting. If we want different results, we

must change the way we do things.

18

Article | Human Resources Demystifying Organizational Culture Ramesh Srinivasan, Consultant, Aim & Succeed

Organizational Culture is the oft deliberated topic in the HR / Management platforms, but less defined and still

less leveraged in the area of Human Resources Management.

Like understanding the culture of a society or a country, understanding the culture of the organization is also

sensitive, subjective and a bit complicated even to the employees (including the top leadership) working in the

organization. Non-understanding or mis-understanding of organizational culture lead to the downfall of many

big names in corporate world. The top leadership team need to necessarily understand the "Grand Narrative" of

their organization for its continued Growth.

The term ―Organizational Culture‖ was first coined by Dr Elliot Jacques in his famous book ―The Changing

Culture of a Factory : A study of authority and participation in an industrial setting‖ in 1951.

Subsequently, may psychoanalysts, psychologists, social scientists and management gurus did research work

on this topic and came out with scientific models to classify and understand the organizational culture of an

organization.

In the year 1980, Dr Edgar Schein, an American Psychologist developed a 3 level model of Organizational

Culture. Those 3 distinct levels are :

Artefacts and Symbols

Espoused Values

Assumptions

This model can be illustrated below :

According to Dr Schein, the artefacts and symbols exhibited by the organization (i.e., dress code, portraits,

etc.). These can be easily recognised even by people who are not part of the organization. Espoused Values

are the stated company policies, vision, mission, etc., which will act as guiding principles for employees of the

organization. Assumptions are the Deeply imbedded behaviours, which are mostly unconscious or sub-

conscious, but will have a lasting impression on the way things get done in an organization and business

results.

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In the midst of many foreign models, the OCTAPACE model developed by our own Dr T.V Rao and

Mr. Udai Pareek stood the test of time and is still an effective tool to study the organizational culture. Dr T.V

Rao and Mr Udai Pareek identified eight crucial basic values or ethos to study the organizational culture. The

acronym OCTAPACE stands for :

O – Openness

C – Confrontation

T – Trust

A – Authenticity

P – Pro-activity

A – Autonomy

C – Collaboration

E – Experimentation

This model is used extensively in manufacturing, IT / ITES and Service industries and proved to be handy to

understand where the organization stand and areas to focus on to build an organization of values and ethos.

As Jack Welch puts it, ―An organization‘s ability to learn and translate that learning into action rapidly is the

ultimate competitive edge‖. In short, if the top leadership of an organization is able to understand its culture

and deploy its resources in compatible to its culture will be a successful one both in the short-term as well as

in the long-term.

Let us see some examples and case studies in the next issue and how organizations get benefitted by making

an objective study of their culture.

…To be continued…

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Article | Legal Labour painsS.RAVINDRAN, Senior Advocate, Madras High Court

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Conducting Domestic Enquiry, Interviews,

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profession of personnel management.

With companies like Ford, Hyundai Motor, BMW, Daimler, Renault-Nissan, Mitsubishi Motors, Yamaha

Motor And Royal Enfield present, the Chengalpattu-Oragadam belt, near Chennai, has come to be known as

the ‗Detroit of Asia‘. In this hub that has the capacity to produce one car every 20 seconds, labour issues

have begun to rear their head. In the last few weeks, workers from two-wheeler firms Yamaha and Royal

Enfield and some from auto component firms have been taking to the streets to voice their concerns

pertaining to issues such as wages and recognition of unions.

The usually vacant highways in the region are flooded with thousands of workers waving placards and flags.

Last week, workers from companies not affected by the protests also came out to show their support.

R. Suresh (name changed), a worker at one of the firms, said that companies were paying no heed to

employees. ―If we voice our issues, they terminate us. This is not the way to treat workers,‖ he said.

His friend, K. Saravanan, who works in another factory nearby, said that wages were also lower in the hub

when compared to other States. ―Every time we have to fight for our rights. And if we don‘t, the companies

just don't bother.They want to take out maximum profits out of their investments here,‖ he said.

S. Kannan, President, CITU, Kancheepuram district, said that the AIADMK government was unable to

handle labour unrest. ―The government has a vested interest to safe guard corporates. It is not at all

interested in upholding the rights of workers,‖ he alleged.

For the State, the labour unrest in the auto hub comes at a time when it is gearing up to host the second

edition of the Global Investors Meet (GIM) in January 2019. While the strike has been called off at the

Royal Enfield plant, the labour problems continue at Yamaha and Myoung Shin Automotive India (MSI),

which is a supplier to Hyundai Motor India.

The crux of the problem at Royal Enfield, Yamaha and MSI is that a section of workers is unhappy with

wages and attempts to form a union were disallowed by the management. In fact, the management

suspended workers who tried to form a union. Now, talks are on before the Labour Commissioner on the

Yamaha and MSI labour issues. This is not the first time that workers in this belt are up in arms. In the past

companies like Hyundai, Ford and Renault-Nissan have also faced labour issues.

Please update your contact details if any changes.

21

Mr. Kannan pointed out that if managements recognised unions, collective bargaining would help workers

get fair wages. ―When the workers are happy, they will give their best and it will give good results in

manufacturing and services sectors,‖ he said.

Works committees Most companies in the Sriperumbudur-Oragadambelt have been comfortable in dealing

with labour issues through what is called a Works Committee and have shied away from recognising unions.

―The very first body constituted for the purpose of negotiation and settlement between the employer and

workmen representatives is the Works Committee. A Works Committee is required to be constituted in those

industrial establishments having at least 100 workmen,‖ Said Preetha S., Senior Member, Employment Laws

Practice, Nishith Desai Associates.

The Works Committee typically consists of representatives of both the employer as well as the workmen

(both unionized and non-unionized). If there is a registered trade union/unions in the establishment, the

representatives of the workmen are chosen based on consultation with the registered trade union(s). The

workmen representatives are chosen on the basis of election.

One of the key issues regarding recognition of unions is that there is no law at the national level for

recognition of trade unions in India, according to legal experts. Ms. Preetha pointed out that registration of a

trade union does not automatically imply that the particular trade union has attained ‗recognition‘ from the

employer, unless the State-specific laws provide for recognition of trade unions or if such recognition has

been granted by the employer by way of an agreement.

―As such, the right to collective bargaining is available only to a ‗recognized‘ trade union. There is no Legal

obligation per se upon an employer to collectively bargain with trade unions other than a recognized trade

union, although there could be practical challenges in dealing with such a situation,‖ she said.

A. Soundararajan of the Centre for Indian Trade Unions (CITU) said that there is an argument that the law is

not clear about recognition of unions. ―However, this should be an automatic process and workers rights can

be ensured only through collective bargaining,‖ he pointed out. CITU has been spearheading the protest in

this industrial hub.

Clash of expectations S. Ravindaran, a senior advocate, said conflict between the expectations of the

industry versus aspirations of the workforce was the reason for industrial unrest in the auto hub.

The industry operates in a very competitive market con-dition where delivery of high quality products to the

consumer at competitive prices is the basic requirement and hence it craves a highly skilled and disciplined

work force to achieve its production targets, he added.

―The cream of the skilled and educated workforce is employed on a permanent basis, operating highly

sophisticated machinery.

The remaining educated workforce is trained to attain the skill needed for the industry. However, there is

high turnover of trainees and, therefore, there is continues engagement of a large number of trainees in the

industry. The unskilled jobs which have no value addition are carried out by a large number of contract

workmen,‖ Mr. Ravindran said.

He pointed out that after a few years, the permanent workforce who are given an-nual increments at the

discretion of the management, crave automatic increases in wages, which will take them to the level of ―fair

wage‖, while on the other hand a large number of trainees and contract workmen, receiving only statutory

―minimum wages‖ after being engaged for long years, expect to be absorbed on the rolls of the management

and given the status of permanent workmen.

We Welcome your suggestions on / reference for the monthly guest lectures.

22

―When the management does not fulfil the aspirations of the permanent workmen in their quest for fair

wages and aspirations of the trainees and contract workmen for being absorbed, they naturally turn to

outside union leadership to redress their grievances,‖ Mr. Ravindran explained.

A report by Nishith Desai Associates India— Trade Unions and Collective Bargaining in 2015 —pointed

out that historically, the function of the trade unions was limited largely to collective bargaining for

economic considerations. ―However, trade unions now play a major role in employee

welfare activities, cultural programmes and banking and medical facilities and by creating awareness

through training and educating the members of the trade unions. On the other hand, the dominant

managerial objectives in collective bargaining in recent years owing to height enedcompetition have been to

reduce labour costs, increase production or productivity, flexibility in work organization (multi-skilling

/multifunctioning, changes in worker grades etc.), increase in worktime, reduction in regular staff strength

via VRS, stress on quality and so on,‖ it said.

Ms. Preetha points out that employers should be open to providing an open and participative work

environment. ―Employees should feel welcomed and be treated with dignity and respect. They should also

be encouraged to use internal grievance redressal mechanisms. In my view, this would be a win-win

situation for both the employer and the employees,‖ she said.

―The management should recognise the aspirations of the workforce by giving them fair wages and

regularise the services of trainees and contract workmen who have worked for long years. The workforce

should realise that earning wages for mere presence in the factory is no longer possible. The workforce

should be highly disciplined and motivated to achieve high levels of productivity. Beyond minimum wages,

the rest of the wages should be linked to productivity,‖ Mr. Ravindaran said.

―The industry and the workforce should appreciate the other‘s need and arriveatan amicable solution, which

alone would provide lasting industrial peace in Chennai‘s industrial belt,‖ he noted.

Impact on investment, the current unrest could have implications for the State‘s industrial climate.

According to data from RBI, Tamil Nadu netted $3.47 billion in foreign direct investment in 2017-18.

However, the inflows declined in the April-June 2018 period, with investment at $718 million, compared to

$996 million in the same period last year.

The State government has repeatedly assured that all is well with the industrial climate. However, recent

happenings like the closure of the Sterlite plant, protests over the Chennai-Salem green corridor project, and

shifting of the Indian Premier League outof Chennai have all raised question marks, especially when

neighbouring states of Andhra Pradesh and Telangana have been aggressive in attracting investments.

―MNCs are not mandated to be bogged down in any way by such issues. If the environment is not conducive

to their business, there are so many choices for them. The loser is certainly the local environment, which has

to be understood by all concerned. With a good part of our society looking up to countries like Singapore,

and also going there for employment, administrators should follow the example of the Singapore Prime

Minister in how he firmly dealt with thestriking Singapore Airlines pilots,‖ Ar Rm Arun, Chairman, FICCI's

Tamil Nadu State Council, said.

He also pointed out such negative events will certainly cause MNCs to rethink their strategy. ―We‘re also

seeing Indian companies from other States reconsidering their expansion plans. Labour reforms are an

extremely crucial part of growth and can‘t be taken for granted. While its good that the next edition of GIM

is being planned, it is extremely important for the administrators to firmly address such issues with priority.

There‘s no point in slowing down the development process to only further vested or short-term agendas,‖

Mr. Arun said.

We welcome any professional achievements or change in role or any matter of public interest that needs to be

notified, please send email to nipmcc@yahoo.com for us to publish in the newsletter.

23

Article | Legal Food Corporation of India Vs Gen.Secy.FCI India Employees Union and Others

S.RAVINDRAN, Senior Advocate, Madras High Court

1. Close on the heels of its judgment in Madras Port Trust Case, the Supreme Court of India has found fault

with the FCI Management in its handling of contract labour. The Supreme Court has ordered regularisation

of contract workmen on the following 4 factual findings

a. The engagement of contract labour continued even after the expiry of agreement between FCI and the

contractor

b. 955 contract workmen were being paid wages directly by FCI

c. The nature of work performed by the contract workmen was of a perennial in nature in the set of the FCI

d. All the contract workmen were performing their duties as that of permanent workers

2. The management of FCI did not come forward to lead evidence to justify its stand and therefore drew

adverse inference by the Courts.

3. The tendency of the managements to engage contract labour and exploit them disregarding the provisions of

the CLRA Act is leading to adverse decision being handed over by the judiciary.

4. Unless the managements engage contract labour for bonafide reasons and comply with the provisions of the

CLRA Act, the demand for regularisation of their services by the contract workmen would find favour with

the judiciary.

5. It is high time that the managements set their house in order.

He also pointed out that all stakeholders should be doing everything possible to project the State in the best

light across all parameters, especially when every Indian State is vying for investments. Mr. Soundararajan

does not believe that strikes impact the investment climate. ―Strikes have been happening across the

manufacturing hub in various States. The workers are not happy with the management. Companies make

investments based on the availability of workforce and they need to meet their aspirations,‖ he said.

―We need investment, for that we can't lose human rights and labour rights,‖ Mr. Kannan added.

Look forward to your active contribution of articles for our upcoming issue of Bouquet Magazine send to

nipmcc@yahoo.com

24

Article | Legal Union Bank of India and Others Vs C.G. Ajay Babu and Another

S.RAVINDRAN, Senior Advocate, Madras High Court

1. The Payment of Gratuity Act is a beneficial enactment providing for lump some payment to employee after

rendering long years of service to the management.

2. However, the Act excludes gratuity payment when an employee is terminated from service for an offence

involving moral turpitude, provided such offence was committed by the employee in the course of his

employment.

3. The legal position all along was that the employee would be forfeited of the gratuity amount if he was

dismissed from service for an act of misconduct involving moral turpitude.

4. However, in the above judgement, the Supreme Court has given a new interpretation to Section 4 (6)(b)(ii)

of the Act. It has held that ―Under sub-section (6)(b)(ii) of the Act, forfeiture of gratuity is permissible only

if the termination of an employee is for any misconduct which constitutes an offence involving moral

turpitude, and convicted accordingly by a court of competent jurisdiction‖

5. The reasoning of Supreme Court is that the term ―offence‖ means ―an act or omission made punishable by

any law for the time being in force‖. The Supreme Court has stated that apart from the disciplinary

proceedings initiated by the management, it should set the criminal law in motion leading to the employee

being convicted by a competent court.

6. Henceforth, unless an employee is found guilty of an offence involving moral turpitude by a competent

Criminal Court , the management cannot forfeit gratuity to the employee, merely because he was dismissed

from service for an act of misconduct involving moral turpitude in

terms of service rules/standing orders.

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organized by NIPM & Madras Management Association. Please send nominations in large number and

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