law of contracts at airtel

7/23/2019 Law of Contracts at AIRTEL

http://slidepdf.com/reader/full/law-of-contracts-at-airtel 1/47

Table of Content

Chapter 1:- Introduction

Chapter 2:- Research Methodology

• Objective of Study

• Scope and Rationale of Study

• Methodology

• i!itation of Study

Chapter ":- #heoretical $ac%ground

Chapter &:- Case Study '

Introduction of Co!pany profile and (roduct

)bout the *or% in co!pany done by students

Chapter +:- ,ata )nalysis

Chapter :- .indings

$ibliography

)nne/ure

1



CHAPTER - 1

2



Chapter 1:- Introduction

#he la* relating to contracts in India is contained in INDIAN CONTRACT ACT, 1!"0 #he

)ct *as passed by $ritish India and is based on the principles of nglish Co!!on a*0 It is

applicable to all the states of India e/cept the state of a!!u and 3ash!ir 0 It deter!ines the

circu!stances in *hich pro!ises !ade by the parties to a contract shall be legally binding on

the!0 )ll of us enter into a nu!ber of contracts everyday %no*ingly or un%no*ingly0 ach

contract creates so!e rights and duties on the contracting parties0 4ence this legislation5

Indian Contract )ct of 16725 being of s%eletal nature5 deals *ith the enforce!ent of these

rights and duties on the parties in India0

Indian Contract Act, 1!"

Indian Contract Act, 1!"

Indian Contract )ct 1672 is the !ain source of la*

regulating contracts in India0

Citation )ct 8o0 9 of 1672

Enacted b# I!perial egislative Council

Date enacted 2+ )pril 1672

Date co$$enced 1 Septe!ber 1672

De%elop$ent

#he )ct as enacted originally had 2 Sections5 it had *ide scope and included0

• eneral (rinciples of a* of Contract- Sections ;1 to 7+

• Contract relating to Sale of oods- Sections 7 to 12"

• Special Contracts- Inde!nity5 uarantee5 $ail!ent < (ledge- Sections 12& to 2"6

• Contracts relating to (artnership- Sections 2"9 to 2

Indian Contract )ct e!bodied the si!ple and ele!entary rules relating to Sale of goods and

(artnership0 #he develop!ents of !odern business *orld found the provisions contained in

3

https://en.wikipedia.org/wiki/British_India

https://en.wikipedia.org/wiki/English_Common_Law

https://en.wikipedia.org/wiki/Jammu_and_Kashmir

http://www.vakilno1.com/bareacts/indiancontractact/s1.html

https://en.wikipedia.org/wiki/Imperial_Legislative_Council_(India)

https://en.wikipedia.org/wiki/British_India

https://en.wikipedia.org/wiki/English_Common_Law

https://en.wikipedia.org/wiki/Jammu_and_Kashmir

http://www.vakilno1.com/bareacts/indiancontractact/s1.html

https://en.wikipedia.org/wiki/Imperial_Legislative_Council_(India)



the Indian Contract )ct inade=uate to deal *ith the ne* regulations or give effect to the ne*

principles0 Subse=uently the provisions relating to the Sale of oods and (artnership

contained in the Indian Contract )ct *ere repealed respectively in the year 19"; and 19"2

and ne* enact!ents na!ely Sale of oods and Movables )ct 19"; and Indian (artnership

act 19"2 *ere re-enacted0

)t present the Indian Contract )ct !ay be divided into t*o parts

• (art 1:deals *ith the eneral (rinciples of a* of Contract Sections 1 to 7+

• (art 2:deals *ith Special %inds of Contracts such as

>1?Contract of Inde!nity and uarantee

>2?Contract of $ail!ent and (ledge

>"?Contract of )gency

"& Acceptance "'b?:- @hen the person to *ho! the proposal is !ade5 signifies his assent

there to5 the proposal is said to be accepted0

(& Pro$i)e "'b? :- ) (roposal *hen accepted beco!es a pro!ise0 In si!ple *ords5 *hen an

offer is accepted it beco!es pro!ise0

*& Pro$i)or and pro$i)ee "'c+ :- @hen the proposal is accepted5 the person !a%ing the

proposal is called as pro!isor and the person accepting the proposal is called as pro!isee0

& Con)ideration "'d+:- @hen at the desire of the pro!isor5 the pro!isee or any other person

has done or abstained fro! doing so!ething or does or abstains fro! doing so!ething 5 such

act or abstinence or pro!ise is called a consideration for the pro!ise0 (rice paid by one party

for the pro!ise of the other #echnical *ord !eaning ABI,-(RO-ABO i0e0 so!ething in

return0

& A.ree$ent 2>e? :- E%er# pro$i)e and )et of pro$i)e) for$in. the con)ideration for

each other& In )hort,

!& Contract "'h+ :- )n agree!ent enforceable by a* is a contract0

4

http://www.vakilno1.com/bareacts/saleofgoods/s1.htm

http://www.vakilno1.com/bareacts/partnershipact/partnershipact.htm


http://www.vakilno1.com/bareacts/saleofgoods/s1.htm





#herefore5 there !ust be an agree!ent and it should be enforceable by la*0

& /oid a.ree$ent "'.+:- )n agree!ent not enforceable by la* is void0

0& /oidable contract "'i+:- )n agree!ent is a voidable contract if it is enforceable by a* at

the option of one or !ore of the parties there to >i0e0 the aggrieved party?5 and it is not

enforceable by a* at the option of the other or others0

1& /oid contract "'2+ :- ) contract *hich ceases to be enforceable by a* beco!es void

*hen it ceases to be enforceable0

Definition

) contract is a legally enforceable agree!ent bet*een t*o or !ore parties *ith !utual

obligations0 #he Indian contract )ct 16725 Section 2>h? defines the ter! contract as an

agree!ent legally enforceable by la*5 for the for!ation of a contract there !ust be an

agree!ent5 the agree!ent should be enforceable by la*0

1& #here !ust be a la*ful offer and a la*ful acceptance of the offer5 thus resulting in an

agree!ent0

"& Acceptance "'b?:- @hen the person to *ho! the proposal is !ade5 signifies his assent

there to5 the proposal is said to be accepted0

(& Pro$i)e "'b? :- ) (roposal *hen accepted beco!es a pro!ise0 In si!ple *ords5 *hen an

offer is accepted it beco!es pro!ise0

*& Pro$i)or and pro$i)ee "'c+ :- @hen the proposal is accepted5 the person !a%ing the

proposal is called as pro!isor and the person accepting the proposal is called as pro!isee0

& Con)ideration "'d+:- @hen at the desire of the pro!isor5 the pro!isee or any other person

has done or abstained fro! doing so!ething or does or abstains fro! doing so!ething 5 such

5



act or abstinence or pro!ise is called a consideration for the pro!ise0 (rice paid by one party

for the pro!ise of the other #echnical *ord !eaning ABI,-(RO-ABO i0e0 so!ething in

return0

& A.ree$ent 2>e? :- E%er# pro$i)e and )et of pro$i)e) for$in. the con)ideration for

each other& In )hort,

!& Contract "'h+ :- )n agree!ent enforceable by a* is a contract0

#herefore5 there !ust be an agree!ent and it should be enforceable by la*0

& /oid a.ree$ent "'.+:- )n agree!ent not enforceable by la* is void0

0& /oidable contract "'i+:- )n agree!ent is a voidable contract if it is enforceable by a* at

the option of one or !ore of the parties there to >i0e0 the aggrieved party?5 and it is not

enforceable by a* at the option of the other or others0

1& /oid contract "'2+ :- ) contract *hich ceases to be enforceable by a* beco!es void

*hen it ceases to be enforceable0

Acceptance

)ccording to Section 2>b?5 @hen the person to *ho! the proposal is !ade signifies his

assent there to5 the proposal is said to be accepted0

Rules:

10 )cceptance !ust be absolute and un=ualified0 If the parties are not in ad ide! on all

!atters concerning the offer and acceptance5 there is no valid contract0 .or e/a!ple ) says

to $ I offer to sell !y car for Rs0+;5;;;D-0 $ replies I *ill purchase it for Rs0&+5;;;D-0

#his is not acceptance and hence it a!ounts to a counter offer0

6



20 It should be Co!!unicated to the offeror0 #o conclude a contract bet*een parties5 the

acceptance !ust be co!!unicated in so!e prescribed for!0 ) !ere !ental deter!ination on

the part of offeree to accept an offer does not a!ount to valid acceptance0

"0 )cceptance !ust be in the !ode prescribed0 If the acceptance is not according to the !ode

prescribed or so!e usual and reasonable !ode>*here no !ode is prescribed? the offeror !ay

inti!ate to the offeree *ithin a reasonable ti!e that acceptance is not according to the !ode

prescribed and !ay insist that the offer be accepted in the prescribed !ode only0 If he does

not infor! the offeree5 he is dee!ed to have accepted the offer0 .or e/a!ple ) !a%es an

offer to $ says to $ that if you accept the offer5 reply by voice0 $ sends reply by post0

It *ill be a valid acceptance5 unless ) infor!s $ that the acceptance is not according to

the prescribed !ode0

&0 )cceptance !ust be given *ithin a reasonable ti!e before the offer lapses0 If any ti!e

li!it is specified5 the acceptance !ust be given *ithin the ti!e5 if no ti!e li!it is specified it

!ust be given *ithin a reasonable ti!e0

+0 It cannot precede an offer0 If the acceptance precedes an offer it is not a valid acceptance

and does not result in contract0 .or e/a!ple in a co!pany shares *ere allotted to a person

*ho had not applied for the!0 Subse=uently *hen he applied for shares5 he *as un a*are of

the previous allot!ent 0 #he allot!ent of share previous to the application is not valid0

0 )cceptance by the *ay of conduct0

70 Mere silence is no acceptance0 3ilence doe) not per-)e a$ount) to co$$unication-

4an5 of India 6td& /)& Ru)to$ Co7a)2ee- AIR 10 4o$& *10 at P& *(8 ! 4o$& 6&R&

- Mere silence cannot a!ount to any assent0 It does not even a!ount to any representation

on *hich any plea of estoppel !ay be found5 unless there is a duty to !a%e so!e state!ent or

to do so!e act free and offer er !ust be consent

60)cceptance !ust be una!biguous and definite0

6a7ful con)ideration

)ccording to Section 2>d?5 Consideration is defined as: @hen at the desire of the pro!isor5the pro!isee has done or abstained fro! doing5 or does or abstains fro! doing5 or pro!ises

7



to do or abstain so!ething5 such an act or abstinence or pro!ise is called consideration for

the pro!ise0 Consideration !eans to do so!ething in return0

In short5 Consideration !eans quid pro quo i0e0 so!ething in return0

)n agree!ent !ust be supported by a la*ful consideration on both sides0 ssentials of valid

considerations are

• It !ust !ove at the desire of the pro!isor0 )n act constituting consideration !ust have been

done at the desire or re=uest of the pro!iser0 If it is done at the instance of a third party or

*ithout the desire of the pro!isor5 it *ill not be good consideration0 .or e/a!ple ) saves

$Es goods fro! fire *ithout being as% hi! to do so0 ) cannot de!and pay!ent for his

service0

• Consideration !ay !ove fro! the pro!isee or any other person0 Bnder Indian la*5

consideration !ay be fro! the pro!isee of any other person i0e05 even a stranger0 #his !eans

that as long as there is consideration for the pro!isee5 it is i!!aterial5 *ho has furnished it0

• Consideration !ust be an act5 abstinence or forebearance or a returned pro!ise0

• Consideration !ay be past5 present or future0 (ast consideration is not consideration

according to nglish la*0 4o*ever it consideration as per Indian la*0 /a!ple of past

consideration is5 ) renders so!e service to $ at latterEs desire0 )fter a !onth $

pro!ises to co!pensate ) for service rendered to hi! earlier0 @hen consideration is given

si!ultaneously *ith pro!ise5 it is said to be present consideration 00 .or e/a!ple ) receives

Rs0+;D- in return for *hich he pro!ises to deliver certain goods to $0 #he !oney )

receives is the present consideration0 @hen consideration to one party to other is to pass

subse=uently to the !a%er of the contract5 is said to be future consideration0 .or e/a!ple0 )

pro!ises to deliver certain goods to $ after a *ee%0 $ pro!ises to pay the price after a

fortnight5 such consideration is future0

• Consideration !ust be real0 Consideration !ust be real5 co!petent and having so!e value in

the eyes of la*0 .or e/a!ple ) pro!ises to put life to $Es dead *ife5 if $ pay hi!

Rs01;;;D-0 )Es pro!ise is physically i!possible of perfor!ance hence there is no real

consideration0

• Consideration !ust be so!ething *hich the pro!iser is not already bound to do0 ) pro!ise to

do so!ething *hat one is already bound to do5 either by la*5 is not a good consideration05

since it adds nothing to the previous e/isting legal consideration0

8



• Consideration need not be ade=uate0 Consideration need not be necessarily be e=ual to value

to so!ething given0 So long as consideration e/ists5 the courts are not concerned as to

ade=uacy5 provided it is for so!e value0

#he consideration or object of an agree!ent is la*ful5 unless and until it is:

10 forbidden by la*: If the object or the consideration of an agree!ent is for doing an act

forbidden by la*5 such agree!ent are void0 for e/a!ple5) pro!ises $ to obtain an

e!ploy!ent in public service and $ pro!ises to pay Rs one la%h to )0 #he agree!ent is

void as the procuring govern!ent job through unla*ful !eans is prohibited0

20 If it involves injury to a person or property of another: .or e/a!ple5 ) borro*ed rs01;;D-

fro!$ and e/ecuted a bond to *or% for $ *ithout pay for a period of 2 years0 In case of

default5 ) o*es to pay the principal su! at once and huge a!ount of interest0 #his contract

*as held void as it involved injury to the person0

"0 If courts regards it as i!!oral:)n agree!ent in *hich consideration ir object of *hich is

i!!oral is void0 .or e/a!ple5 )n agree!ent bet*een husband and *ife for future separation

is void0

&0 Is of such nature that5 if per!itted5 it *ould defeat the provisions of any la*:

+0 is fraudulent5 or involves or i!plies injury to the person or property of another5 or

0 Is opposed to public policy0 )n agree!ent *hich tends to be injurious to the public or against

the public good is void0 .or e/a!ple5 agree!ents of trading *ith foreign ene!y5 agree!ent to

co!!it cri!e5 agree!ents *hich interfere *ith the ad!inistration of justice5 agree!ents

*hich interfere *ith the course of justice5 stifling prosecution5 !aintenance and cha!perty0

70 )gree!ents in restrained of legal proceedings: #his deals *ith t*o category0 One is5

agree!ents restraining enforce!ent of rights and the other deals *ith agree!ents curtailing

period of li!itation0

60 traffic%ing in public offices and titles:agree!ents for sale or transfer of public offices and title

or for procure!ent of a public recognition li%e pad!a vibhushanor pad!a sree etc0 for

!onetary consideration is unla*ful5 being opposed to public policy0

90 )gree!ents restricting personal liberty: agree!ents *hich unduly restricts the personal

liberty of parties to it are void as being opposed by public policy0

1;0 Marriage bro%erage contact:)gree!ents to procure !arriages for re*ards are void under theground that !arriage ought to proceed *ith free and voluntary decisions of parties0

9



110 )gree!ents interfering !arital duties: )ny agree!ent *hich interfere *ith perfor!ance of

!arital duty is void being opposed to public policy0 )n agree!ent bet*een husband and *ife

that the *ife *ill never leave her parental house0

120 consideration !ay ta%e in any for!-!oney5goods5 services5 a pro!ise to !arry5 a pro!ise toforbear etc0

Contract Opposed to Public Policy can be Repudiated by the Court of law even if that

contract is beneficial for all of the parties to the contract- What considerations and objects

are lawful and what not-Newar Marble Industries Pvt !td "s Rajasthan #tate $lectricity

%oard& 'aipur& ())* Cr !' (()( at (()+& ((), Raj.- )gree!ent of *hich object or

consideration *as opposed to public policy5 unla*ful and void- ' @hat better and *hat !ore

can be an ad!ission of the fact that the consideration or object of the co!pounding

agree!ent *as abstention by the board fro! cri!inally prosecuting the petitioner-co!pany

fro! offense under Section "9 of the act and that the $oard has converted the cri!e into a

source of profit or benefit to itself0 #his consideration or object is clearly opposed to public

policy and hence the co!pounding agree!ent is unla*ful and void under Section 2" of the

)ct0 It is unenforceable as against the (etitioner-Co!pany0

Co$petent to contract

Section 11 of #he Indian Contract )ct specifies that every person is co!petent to contract pro

10 4e should not be a !inor i0e0 an individual *ho has not attained the age of !ajority i0e0 16

years in nor!al case and 21 years if guardian is appointed by the Court0

20 4e should be of sound !ind *hile !a%ing a contract0 ) person *ho is usually of unsound

!ind5 but occasionally of sound !ind5 can !a%e a contract *hen he is of sound !ind0

Si!ilarly if a person is usually of sound !ind5 but occasionally of unsound !ind5 !ay not

!a%e a valid contract *hen he is of unsound !ind0

"0 4e is not dis=ualified fro! contracting by any other la* to *hich he is subject

#here are other la*s of the land that dis=ualify certain persons fro! contracting0#hey are:-

-)lien ene!y

-.oreign sovereigns5 diplo!atic staff etc0 -)rtificial persons i0e0 corporation5 co!panies etc0

10



-Insolvents

-Convicts

-(ardanashin @o!en

9ree Con)ent

)ccording to Section 1"5 t*o or !ore persons are said to be consented *hen they agree

upon the sa!e thing in the sa!e sense >Consensus-ad-ide/?0 )ccording to Section 1&5

Consent is said to be free *hen it is not caused by coercion or undue influence or fraud or !isrepresentation or

!ista%e0

Ele$ent) /itiatin. free Con)ent

10 Coercion >Section 1+?: Coercion is the co!!itting5 or threatening to co!!it5 any act

forbidden by the Indian (enal Code under>&+516;?5 or the unla*ful detaining5 or threatening

to detain5 any property5 to the prejudice of any person *hatever5 *ith the intention of causing

any person to enter into an agree!ent0 .or e/a!ple5 ) threatens to shoot $if he doesnEt

release hi! fro! a debt *hich he o*es to $0 $ releases ) under threat0 Since the

release has been brought about by coercion5 such release is not valid0

20 Bndue influence >Section 1?: @here a person *ho is in a position to do!inate the *ill of

another enters into a contract *ith hi! and the transaction appears on the face of it5 or on the

evidence5 to be unconscionable5 the burden of proving that such contract *as not induced by

undue influence shall lie upon the person in the position to do!inate the *ill of the other0

>Section 1>2?? States that ) person is dee!ed to be in a position to do!inate the *ill of

anotherF

• @here he holds a real or apparent authority over the other0 .or e/a!ple5 an e!ployer

!ay be dee!ed to be having authority over his e!ployee0 an inco!e ta/ authority

over to the asessee0

• @here he stands in a fiduciary relationship to other5 .or e/a!ple5 the relationship of

Solicitor *ith his client5 spiritual advisor and devotee0

• @here he !a%es a contract *ith a person *hose !ental capacity is te!porarily or

per!anently affected by the reason of age5 illness or !ental or bodily distress

11



"0 .raud >Section 17?: .raud !eans and includes any act or conceal!ent of !aterial fact or

!isrepresentation !ade %no*ingly by a party to a contract5 or *ith his connivance5 or by his

agent5 *ith intent to deceive another party thereto of his agent5 or to induce hi! to enter into

the contract0 Mere silence is not fraud0 a contracting party is not obliged to disclose each and

everything to the other party0 #here are t*o e/ceptions *here even !ere silence !ay be

fraud5 one is *here there is a duty to spea%5 then %eeping silence is fraud0 or *hen silence is

in itself e=uivalent to speech5 such silence is fraud0

&0 Misrepresentation >Section 16?: causing5 ho*ever innocently5 a party to an agree!ent to

!a%e a !ista%e as to the substance of the thing *hich is the subject of the agree!ent0

+0 Mista%e of fact >Section 2;?: @here both the parties to an agree!ent are under a !ista%eas to a !atter of fact essential to the agree!ent5 the agree!ent is void0 ) party cannot be

allo*ed to get any relief on the ground that he had done so!e particular act in ignorance of

la*0Mista%e !ay be bilateral !ista%e *here both parties to an agree!ent are under !ista%e

as to the !atter of fact0#he !ista%e !ust relate to a !atter of fact essential to the agree!ent0

A.enc#

In la*5 the relationship that e/ists *hen one person or party >the principal? engages another

>the agent? to act for hi!5 e0g0 to do his *or%5 to sell his goods5 to !anage his business0 #he

la* of agency thus governs the legal relationship in *hich the agent deals *ith a third party

on behalf of the principal0 #he co!petent agent is legally capable of acting for this principal

vis-G-vis the third party0 4ence5 the process of concluding a contract through an agent

involves a t*ofold relationship0 On the one hand5 the la* of agency is concerned *ith the

e/ternal business relations of an econo!ic unit and *ith the po*ers of the various

representatives to affect the legal position of the principal0 On the other hand5 it rules the

internal relationship bet*een principal and agent as *ell5 thereby i!posing certain duties on

the representative >diligence5 accounting5 good faith5 etc0?0

Bnder section 2;1 to 21; an agency !ay co!e to an end in a variety of *ays:

>i? $y the principal revo%ing the agency ' 4o*ever5 principal cannot revo%e an agency

coupled *ith interest to the prejudice of such interest0 Such )gency is coupled *ith interest0

)n agency is coupled *ith interest *hen the agent hi!self has an interest in the subject-

12



!atter of the agency5 e0g05 *here the goods are consigned by an upcountry constituent to a

co!!ission agent for sale5 *ith poor to recoup hi!self fro! the sale proceeds5 the advances

!ade by hi! to the principal against the security of the goodsF in such a case5 the principal

cannot revo%e the agentHs authority till the goods are actually sold5 nor is the agency

ter!inated by death or insanity0 >Illustrations to section 2;1?

>ii? $y the agent renouncing the business of agencyF

>iii? $y the business of agency being co!pletedF

>iv? $y the principal being adjudicated insolvent >Section 2;1 of #he Indian Contract )ct0

1672?

#he principal also cannot revo%e the agentHs authority after it has been partly e/ercised5 so asto bind the principal >Section 2;&?5 though he can al*ays do so5 before such authority has

been so e/ercised >Sec 2;"?0

.urther5 as per section 2;+5 if the agency is for a fi/ed period5 the principal cannot ter!inate

the agency before the ti!e e/pired5 e/cept for sufficient cause0 If he does5 he is liable to

co!pensate the agent for the loss caused to hi! thereby0 #he sa!e rules apply *here the

agent5 renounces an agency for a fi/ed period0 8otice in this connection that *ant of s%ill

continuous disobedience of la*ful orders5 and rude or insulting behavior has been held to be

sufficient cause for dis!issal of an agent0 .urther5 reasonable notice has to be given by one

party to the otherF other*ise5 da!age resulting fro! *ant of such notice5 *ill have to be paid

>Section 2;?0 )s per section 2;75 the revocation or renunciation of an agency !ay be !ade

e/pressly or i!pliedly by conduct0 #he ter!ination does not ta%e effect as regards the agent5

till it beco!es %no*n to hi! and as regards third party5 till the ter!ination is %no*n to the!

>Section 2;6?0

@hen an agentHs authority is ter!inated5 it operates as a ter!ination of subagent also0

>Section 21;?01J

13

https://en.wikipedia.org/wiki/Indian_Contract_Act,_1872#cite_note-1

https://en.wikipedia.org/wiki/Indian_Contract_Act,_1872#cite_note-1



CHAPTER - "

14



Chapter ":- Re)earch ethodolo.#

• Ob2ecti%e of 3tud#

Pri$ar# ob2ecti%e:

• #o conduct a study of a* of contracts at )irtel0

3econdar# Ob2ecti%e):

• #o find out various attributes that influence a* of contracts at )irtel00

• #o !easure the effectiveness of a* of contracts at )irtel0

15



• ethodolo.#

Research !ethodology is a *ay to syste!atically solve the research proble!s0 a

careful investigation or in=uiry specially through search for ne* facts in any branch of

%no*ledge0 #he study that has been used is conclusive and descriptive in nature0 ,escriptive

research include survey and fact-finding en=uiries of different %inds to test that *eather staff

are satisfied or not0 #he descriptive study have been coupled *ith the conclusive study to

!a%e it !ore !ethodical organiKed and through giving it approach0 Collecting the pri!ary

data through survey and =uestionnaire !ethod does this0

S)M( ,SI8 )8, SIL

• +; !ployee out of several depart!ents of the )IR# td0

S)M(I8 M#4O,

• Rando! Sa!pling Method *ill be used0

TOO63 ;3ED

#here are !any tools that can be used for the project *or%0 So!e tools are as follo*s:

Ob)er%ation ethod: - observation !ethod is one of the tools used to collect the

pri!ary data to get past and current infor!ation0

Throu.h <ue)tionnaire: - =uestionnaire can be varying effective tool for the

data collection it contains list of =uestions sent to the respondent0

Throu.h 3chedule): - by this schedule tool *e can categories the people in a

different group to %no* the opinion about their *or% environ!ent or about theco!pany0

Inter%ie7 ethod: - in the intervie* tool the =uestionnaire are pre-designed for

*hich the ans*ers are to be obtained0

#he t*o !ajor tools have been used for the research *or%0

1? Auestionnaire Method0

2? Intervie* Method0

TOO63 O9 ANA6=3I3

16



#o %no* the response5 I have used the =uestionnaire !ethod in sa!ple survey0 If one

*ish to find *hat people thin%s or %no*s5 the logical procedure is to as% the!0 #his had led

hu!an resource researchers to use the =uestionnaire techni=ue for collecting data !ore than

any other !ethod0

In this !ethod =uestionnaire *ere distributed to the respondent and they *ere as%ed

to ans*er =uestions in the =uestionnaire0 #he =uestionnaires *ere structured non-disguised

because the =uestions5 *hich the =uestionnaire contained5 *ere arranged in a specific order

besides every =uestion as%ed *as logical for the studyF no =uestion can be ter!ed as

irrelevant0

DATA CO66ECTION

#he tas%s of data collection begins after a research proble! has been defined and

research design D plan chal%ed out0 @hile deciding about the !ethod of data collection to be

used for the study0 #he researcher should %eep in !ind t*o types of data pri!ary and

Secondary0

PRIAR= DATA 3O;RCE3:

• #hrough interaction *ith e!ployees0

• #hrough =uestionnaires filled fro! the consu!er0

#he data5 *hich has been collected in this project *or%5 *as through close-ended

=uestionnaire and personnel intervie*0

1+ <;E3TIONNAIRE ETHOD: - #his !ethod of data collection is =uite popular5

particularly in case of big en=uiries0 #he !ajor part of !y data collection *as through

=uestionnaires5 *hich *ere analyKed5 and various conclusions *ere dra*n0 #he infor!ation5*hich has been collected fro! the )IR# #,5 is also a close-ended =uestionnaire0 )s a

source of pri!ary data =uestionnaire has been used *hich consist of 1" =uestions0 #he

=uestion has been designed by deter!ining all level of e!ployee of the )IR# #,0

"+ INTER/IE> ETHOD: - #he intervie* !ethod has also helped in collecting the

infor!ation and helped to %no* about the opinion of the e!ployee0 @ith the help of

personnel intervie*5 lot of infor!ation has been collected *hich *ere not possible by

17



=uestionnaire !ethod0 @ith the help of personnel intervie* it *as easy to %no* the

satisfaction and dissatisfaction level of the e!ployee and their opinion0

3ECONDAR= DATA 3O;RCE3:

• #hrough Internet5 various official sites of the co!pany0

• #hrough pa!phlets and brochures of the co!pany

• ournals < MagaKine

AREA O9 3T;D=: AIRTE6

3COPE O9 THE 3T;D=

#his research gives a chance for applications and testing of the theoretical study on

the real *or% situation0 #he student got the lesson of e/perience by !eeting various sections

of people conducting on intervie* %no*ing opinion of e!ployee tabulating interpreting and

analyKing the data collected and this *ill help the researcher in future for career building0

#his project *or% also helps the student to get practical %no*ledge5 *hich is perfor!ed by

the e!ployee of the co!pany0 It helps the student to %no* the ho* 4R people *or% in

reality5 ho* they conduct the training progra!s5 ho* they %no* that *here is the need of the

training for the e!ployee0

• 6i$itation of 3tud#

• Certain li!itations that *ere encountered during the survey *ere:

• 1?0 6i$itation of ti$e: #i!e *as not enough considering the a!ount of *or% to

be done0 #hus li!itation of ti!e *as one of the !ajor dra*bac%s of the study0

• 2?0 3a$ple )i?e: Since it *as a sa!ple survey and not a census survey5 the

nu!ber of respondent *as too s!all to dra* any conclusion fro! the research and

hence the out co!e of analysis cannot be considered as absolutely correct0

• "?0 Non co-operation of e$plo#ee): Reluctance on part of certain e!ployees to

sho* their interest on the survey and give their true opinion regarding different

para!eters0

18



• &?0 6ac5 of practical trainin.: ,ue to lac% of training5 it *as very difficult to

develop the research design and analysis the collected data0

• +?0 4ia)ed infor$ation: #he study is based on the infor!ation gathered fro! the

e!ployee0 #herefore in such case it is possible that the infor!ation supplied !ight be

biased because the e!ployee !ight have sho*n partiality to*ards their co!pany and

superiors0

• ?0 6i$itation of 6an.ua.e: #he =uestions *ere as%ed to the e!ployee that *as

easy to understand but !ost of the e!ployees *ere not able to understand because of

the language proble! < illiteracy0

19



CHAPTER - (

20



Chapter (:- Theoretical 4ac5.round

4u!an resource is the very i!portant aspect of any organiKation0 4R policies are !ade to

run organiKation in a planned !anner and to !a%e e!ployees feel li%e they are part of

organiKation only0

@or%ing under 4R and being a part of policy i!ple!entation *as a great e/perience starting

fro! recruit!ent to separation0 Recruit!ent in Corporate Office is very different fro! local

and state offices and there are separate policies for editorial e!ployees of )irtel0 #here *ere

!any proble! areas sho*n *hile *or%ing and i!ple!enting policies but they !ust have to

overco!e by *hole tea! support0

ach co!pany has a different set of circu!stances5 and so develops an individual set of hu!an

resource policies and these policies are very i!portant part of any organiKation0 4R policies can

also be very effective at supporting and building the desired organiKational culture0 #he role of

4u!an Resources is changing as fast as technology and the global !ar%etplace0 4istorically5 the

4R ,epart!ent *as vie*ed as ad!inistration5 %ept personal files and other records5 !anaged

the hiring process5 and provided other ad!inistrative support to the business0 #hose ti!es have

changed and no* 4R depart!ent has evolved fro! just a supportive function of the co!pany to

!ain strea! depart!ent of the organiKation04R policies allo* an organiKation to be clear *ith e!ployees on:

• #he nature of the organiKation

• @hat they should e/pect fro! the organiKation

• @hat the organiKation e/pects of the!

• 4o* policies and procedures *or%

• @hat is acceptable and unacceptable behavior

•

#he conse=uences of unacceptable behavior

#he objective of this project is to understand the *or%ing of 4u!an Resource in )irtel0 #hey

as%ed !e to do this project so that I can understand the hu!an resource policies in practical and

give !y feedbac%s to the 4R and to help the! in i!ple!enting ne* policies in the corporate

office0 #his study has sho*n !e ho* policies are !ade and !odified and *hy it is i!portant to

have a policy in every organiKation0 ) policy is a predeter!ined course of action established as a

guide to*ard accepted objectives and strategies of the organiKation0

21



#he policies *ere !ade starting fro! recruit!ent of any e!ployees to the separation of )irtelite

fro! the organiKation0 #hese policies *ere designed for the e!ployees and I *or%ed in this for

*hole three !onths of !y internship0

#he coverage of this project *as ,$ Corporate $hopal *hich is the oldest and the biggest

corporate office of )irtel0 #hree !onths *as a short span of ti!e to be a part of every policy but

due to less !anpo*er in 4R depart!ent I had an advantage to be a part of !any policies5 but in

!any confidential !atters only !anagers *ere allo*ed to be a part of so!e special policies li%e

gratuity5 business travel policy5 se/ual harass!ent policy etc0

#his project helps !e to give !y unbiased feedbac% to 4R about the so!e policies and the *ay

they are i!ple!ented so that *hen the policy !anual *ill get revised ne/t year changes can be

!ade0

)irtel is open for changes and !odificationsF they slo*ly started to understand the *orth of

hu!an resource depart!ent and the policies *hich *ere the path*ay for the! to achieve their

vision and !ission0 )irtel policies *ere !odified after a long ti!e in )pril 2;12 *ith all the

!ajor changes in recruit!ent5 co!pliances5 co!pensation and benefits etc0

#he )IR# has constant focus on hu!an resources as the !ost i!portant part of

organisation0 Respect for the individual e!ployee5 his or her opportunities to develop *ithin

the )IR# and a good *or%ing cli!ate are our !ain priorities0

#hrough our focus on a *ell functioning !anage!ent philosophy *e ai! to have the !ost

=ualified hu!an resources *hich *ould help us achieve our goals and re!ain a leading

co!pany *ithin our business areas0

)s a conse=uence5 *e prioritise develop!ent plans for our e!ployees as *ell as internal and

e/ternal education progra!!es0 #he goal is that these initiatives *ill develop and strengthen

our co!petencies accordingly0

$eing e!ployed5 the develop!ent of co!petencies *ithin oneHs field of *or% as *ell as on

the personal level *ill be supported0 It *ould happen through job e/perience5 as *ell as

trying different jobs and function areas5 supported by internal and e/ternal education0

#o support the 4R policy5 every single e!ployee has a job description and *e focus on the

annual perfor!ance revie* bet*een the !anager and the e!ployee0 #he perfor!ance revie*

also involves !a%ing a develop!ent plan for the e!ployee0

22



@e !a%e a cli!ate analysis every year in order to focus on continued develop!ent our

*or%ing cli!ate0

HR PO6ICIE3

4u!an resource policies are syste!s of codified decisions5 established by an organiKation5 to

support ad!inistrative personnel functions5 perfor!ance !anage!ent5 e!ployee relations and

resource planning0

ach co!pany has a different set of circu!stances5 and so develops an individual set of hu!an

resource policies0

#he establish!ent of policies can help an organiKation de!onstrate5 both internally and

e/ternally5 that it !eets re=uire!ents for diversity5 ethics and training as *ell as its co!!it!ents

in relation to regulation and corporate governance0

.or e/a!ple5 in order to dis!iss an e!ployee in accordance *ith e!ploy!ent la* re=uire!ents5

a!ongst other considerations5 it *ill nor!ally be necessary to !eet provisions *ithin

e!ploy!ent contracts and collective bargaining agree!ents0

#he establish!ent of an 4R (olicy *hich sets out obligations5 standards of behavior and

docu!ent displinary procedures5 is no* the standard approach to !eeting these obligations0

(olicy or practice areas those are crucial to effective people !anage!ent and develop!ent:

• Recruit!ent and selection

• #raining and learningDdevelop!ent

• Career opportunities

• Co!!unication

• !ployee involve!ent

• #ea! *or%ing

• (erfor!ance appraisal

• (ay satisfaction

• ob security

• job challengeDjob autono!y

• @or%-life balance0

8ot all policies and procedures *ill be relevant to all organiKations5 and so!e policies are

re=uired by la* *hile others are to pro!ote good practice0

23

http://en.wikipedia.org/wiki/Human_resources

http://en.wikipedia.org/wiki/Resource_(economics)





#he follo*ing paragraphs indicate the range of possible policies *hich apply during the

e!ploy!ent life cycle - !ore detailed infor!ation and the legal re=uire!ents on each of these

areas is included0

Recruit$ent and )election

Successful recruit!ent depends on finding people *ith the necessary s%ills5 e/pertise and

=ualifications to deliver organiKational objectives and *ho have the ability to !a%e a positive

contribution to the values and ai!s of the organiKation0 ) diverse *or%force that reflects

custo!er groups in the local co!!unity should be encouraged0

le!ents to consider *hen for!ing a recruit!ent policy:

• ob profileDperson specification

• ,ealing *ith job applications - *hether to use hard copy andDor online for!sF

confidentiality

• Recruit!ent advertising - discri!ination pitfalls

• Selection techni=ues - training and validation

• Intervie*s

• References

• Medical e/a!inations

• )sylu! and i!!igration

• ,ocu!entation

• ob analysis

• =ual opportunities !onitoring

• Return on invest!ent >ROI?Dcost0

#hereEs !ore infor!ation on the *ebsite via our Recruit!ent and talent !anage!ent subject

pages0

Induction

,esigning an appropriate and cost-effective induction progra! is a co!ple/ tas%0 #he progra!

has to find a balance bet*een providing all the infor!ation ne* e!ployees need *ithout

over*hel!ing or diverting the! fro! integrating into the tea!0

#he length and nature of the induction process *ill depend on the co!ple/ity of the job and the

bac%ground of the ne* e!ployee0

le!ents of an induction policy:

24



• OrganiKation infor!ation - bac%ground and structureF depart!entsF products and

servicesF physical layout

• #er!s and conditions - hours of *or%F holidays5 travel policy

•

.inancial - payF bonusesF overti!eF pensions• Culture and values - co!!unication

• Rules and procedures - data protectionF e!ail and internet usageF e=ual opportunitiesF use

of !obile phones

• 4ealth and safety - first aidF s!o%ingF environ!ental aspects

• #raining

• #rade unions

• @elfare5 benefits andfranchising syste!- alcohol and drugsF e!ployee assistance

progra!s0

OrganiKations !ay find it useful to have chec%lists that cover the pre-e!ploy!ent period5 the

first day5 the first *ee%5 the first !onth and the end of the probationary period >if applicable? to

!a%e sure everything has been e/plained0

Durin. e$plo#$ent

!ployee relations loo% at the partnership bet*een e!ployee and e!ployer5 covering areas such

as co!!unication5 grievances and discipline0 It is e=ually i!portant in both union and non-union

situations0 @hile e!ploy!ent la* is closely lin%ed *ith !anaging e!ployee relations5 a

successful organiKation *onEt just base its actions on co!pliance *ith the la* - e/ploring the

concept of the psychological contract5 based on trust bet*een e!ployee and e!ployer5 !ay also

be useful0

(olicies and procedures that organiKations !ay introduce include:

• 4ealth and safety

• disciplinary and grievance

• !aternity and paternity leave and pay

• redundancy

• absence

• *histle blo*ing

• perfor!ance !anage!ent

• recognition agree!ents >union and other?

25



• ti!e off and leave for trade union activities5 holidays5 second!ent5 volunteering5

eldercare5 childcare5 bereave!ent

• co!!unication and involve!ent5 including e!ployee voice

•

4arass!ent and bullying0#hereEs !ore infor!ation on !any of these issues on the *ebsite via our 4R practice5 4ealth5

safety and *ellbeing and !ploy!ent la* subject pages0

ana.in. di%er)it#

,iversity runs through all aspects of an organiKationHs policies0 Managing and valuing

diversity is central to good people !anage!ent and !a%es good business sense5 so it also

!a%es sense for diversity to be integral *ithin all policies0 ) diversity policy sets out the

organiKationHs vision and values in relation to diversity0 It *ill often include the re!it of

polices5 the processes for ta%ing action5 *ho is responsible and the training available0

#he basic pre!ise is that people should be valued as individuals and for reasons related to

business interests5 as *ell as for !oral and social reasons0 ) !ore diverse *or%force is li%ely

to offer a *ider range of s%ills and e/periences and greater fle/ibility to !eet business

challenges0

le!ents of a diversity policy:

• enderDse/ e=uality

• Race e=uality

• Se/ual orientation

• Religion

• )ge

•

)ppearanceDaccent• .or!ats and accessibility of policies and procedures0

6earnin., trainin. and de%elop$ent

Roles and responsibilities are constantly changing5 so e!ployees *ill need to continually rene*

and refresh their s%ills and co!petences through training0 #his can happen in the course of

nor!al *or%ing >on-the-job training? or a*ay fro! the *or%place >off-the-job training?0

26



So!e training is !andatory to co!ply *ith legal re=uire!ents5 such as health and safety or

finance0

le!ents of a learning and develop!ent policy:

• #he organiKationHs vision for learning and develop!ent

• Opportunities available5 including second!ent5 career brea%s5 courses5 coaching5

!entoring

• @ho to as% to get authoriKation for training

• Support given for learning opportunities

• ,evelop!ent revie*s and personal develop!ent plans

• (ay!ent of professional fees

• #raining available for EperipheralE *or%ers ie contractors5 te!porary staff

• Record-%eeping and ad!inistration

• Continuing professional develop!ent and personal develop!ent allo*ances >if these are

not part of the e!ployee benefits state!ent?

• .ollo*-up actions and transfer of learning to *or%0

Re7ard

ffective re*ard practices and procedures can underpin activities in recruit!ent5 retention5

turnover and engage!ent0 ffective i!ple!entation and co!!unication are essential for

initiatives to succeed0

Re*ard policies should be clear and si!ple so that e!ployees %no* *hatEs e/pected of the! and

*hat they can e/pect to receive in return0

le!ents of a re*ard policy:

• #he organiKationHs vision for re*ard5 including !ar%et rates5 e/tra responsibility

allo*ances

• 4o* jobs are graded or evaluated

• (ensionsDadditional voluntary contributions

• (er!anent health insuranceDcritical illness cover

• $onuses and incentive pay

• $enefits and non-cash recognition

• Co!pany cars

• Sic% pay

• (ay revie*s

27



• =ual pay0

Co$ple$entar# policie)

Other policies that organiKations !ay *ant to consider in relation to e!ploy!ent include:• ) !ission or values state!ent

• (arental leave

• @or%-life balanceDfa!ily-friendly *or% practices

• ,isability

• @ell-being and E*ellnessE

• reenDsustainable develop!ent

•

#he e!ploy!ent of relativesDfriends• Conflict of interest5 including personal relationships

• Second jobs

• Confidentiality

• $ad *eatherDcli!ate conditions

• Relocation

• Suggestion sche!es0

Endin. e$plo#$ent

#here are !any reasons *hy e!ploy!ent ceases5 fro! voluntary resignation to dis!issal or

redundancy0

)reas to consider for ending e!ploy!ent include:

• ,is!issal

• Redundancy

• oluntary resignation

• Retire!ent - retire!ent ageF pre-retire!ent coursesF phased retire!ent options

• nd of a short-ter! contract

• nd of a probationary period

• ,eath in service0

/it surveys can record infor!ation about *hy e!ployees say they are leaving0 $ut the data

is not al*ays reliable0 )nother *ay to discover the reasons *hy is through opinion surveys

during e!ploy!ent0

28



9or$attin. a polic#

(olicies should be *ritten in plain nglish5 so that they are user-friendly and easily

understood by all e!ployees0

#he culture of the organiKation and the co!ple/ity of the policies *ill dictate the for!at0Options include:

• Separate !anager and e!ployee !anuals

• )ll policies available on an intranet

• 3ey policies on notice boards0

(olicies should also indicate *ho to go to *ith =ueries about the content and *ho is

responsible for updating and revie*ing the!0

29



Hu$an re)ource policie) are syste!s of codified decisions5 established by an organiKation5

to support ad!inistrative personnel functions5 perfor!ance !anage!ent5 e!ployee relations

and resource planning0

ach co!pany has a different set of circu!stances5 and so develops an individual set of

hu!an resource policies0

Purpo)e)

4R policies allo* an organisation to be clear *ith e!ployees on:

• #he nature of the organisation

• @hat they should e/pect fro! the co!pany

• @hat the co!pany e/pects of the!

• 4o* policies and procedures *or% at your co!pany

• @hat is acceptable and unacceptable behaviour

• #he conse=uences of unacceptable behaviour

#he establish!ent of policies can help an organiKation de!onstrate5 both internally and

e/ternally5 that it !eets re=uire!ents for diversity5 ethics and training as *ell as its

co!!it!ents in relation to regulation and corporate governance0 .or e/a!ple5 in order to

dis!iss an e!ployee in accordance *ith e!ploy!ent la* re=uire!ents5 a!ongst other

considerations5 it *ill nor!ally be necessary to !eet provisions *ithin e!ploy!ent contracts

and collective bargaining agree!ents0 #he establish!ent of an 4R (olicy *hich sets out

obligations5 standards of behaviour and docu!ent displinary procedures5 is no* the standard

approach to !eeting these obligations0

De%elopin. the HR Policie)

4R policies provide an organisation *ith a !echanis! to !anage ris% by staying up to date

*ith current trends in e!ploy!ent standards and legislation

30



http://en.wikipedia.org/wiki/Risk



http://en.wikipedia.org/wiki/Risk



#he long-ter! success of the Co!pany depends on its capacity to attract5 retain and develop

e!ployees able to ensure its gro*th on a continuing basis0 #his is a pri!ary responsibility for

all !anagers0

#he co!pany policy is to hire staff *ith personal attitudes and professional s%ills enabling

the! to develop a long-ter! relationship *ith the Co!pany0

#herefore the potential for professional develop!ent is an essential standard for recruit!ent0

ach ne* !e!ber joining co!pany is to beco!e a participant in developing a sustainable

=uality culture *hich i!plies a co!!it!ent to the organisation and a sense for continuous

i!prove!ent leaving no roo! for co!placency0

H;AN RE3O;RCE3

Hu$an re)ource) is an increasingly broadening ter! *ith *hich an organiKation5 or other

hu!an syste! describes the co!bination of traditionally ad!inistrative personnel functions

*ith ac=uisition and application of s%ills5 %no*ledge and e/perience5 !ployee Relations

and resource planning at various levels0 #he field dra*s upon concepts developed in

IndustrialDOrganiKational (sychology and Syste! #heory0 4u!an resources has at least t*o

related interpretations depending on conte/t0 #he original usage derives fro! political

econo!y and econo!ics5 *here it *as traditionally called labor 5 one of four factors of

production although this perspective is changing as a function of ne* and ongoing research

into !ore strategic approaches at national levels01J #his first usage is used !ore in ter!s of

Ehu!an resources develop!entE5 and can go beyond just organiKations to the level of nations

2J0 #he !ore traditional usage *ithin corporations and businesses refers to the individuals

*ithin a fir! or agency5 and to the portion of the organiKation that deals *ith hiring5 firing5

training5 and other personnel issues5 typically referred to as Nhu!an resources !anage!entE0

#his article addresses both definitions0

De%elop$ent

#he objective of hu!an resourceNsE develop!ent >the NsE is i!portant in hu!an resourceNsE in

that it underscores individualityDvariability? is to foster hu!an resourcefulness through

enlightened and cohesive policies in education5 training5 health and e!ploy!ent at all levels5

fro! corporate to national >a*rence"J 2;;;? &J

31


http://en.wikipedia.org/wiki/System_Theory



http://en.wikipedia.org/wiki/Political_economy


http://en.wikipedia.org/wiki/Economics

http://en.wikipedia.org/wiki/Labour_economics

http://en.wikipedia.org/wiki/Factors_of_production


http://en.wikipedia.org/wiki/HR#cite_note-0








http://en.wikipedia.org/wiki/Economics

http://en.wikipedia.org/wiki/Labour_economics









ana.e$ent

4u!an resource !anage!entEs objective5 on the other hand5 is to !a/i!iKe the return on

invest!ent fro! the organiKationEs hu!an capital and !ini!iKe financial ris%0 It is the

responsibility of hu!an resource !anagers in a corporate conte/t to conduct these activities

in an effective5 legal5 fair5 and consistent !anner0

@e# function)

4u!an resource !anage!ent serves these %ey functions:

10 Recruit!ent < Selection

20 #raining and ,evelop!ent >(eople or OrganiKation?

"0 (erfor!ance valuation and Manage!ent

&0 (ro!otions

+0 Redundancy

0 Industrial and !ployee Relations

70 Record %eeping of all personal data0

60 Co!pensation5 pensions5 bonuses etc in liaison *ith (ayroll

90 Confidential advice to internal Ecusto!ersE in relation to proble!s at *or%

1;0 Career develop!ent

6O4A6 HR PO6IC=

odern anal#)i)

Modern analysis e!phasiKes that hu!an beings are not co!!odities or resources5 but are

creative and social beings in a productive enterprise0 #he 2;;; revision of ISO 9;;1 in

contrast re=uires to identify the processes5 their se=uence and interaction5 and to define and

co!!unicate responsibilities and authorities0 In general5 heavily unioniKed nations such as

.rance and er!any have adopted and encouraged such job descriptions especially *ithin

trade unions0 #he International abour OrganiKation also in 2;;1 decided to revisit5 and

32

http://en.wikipedia.org/wiki/Human_resource_management


http://en.wikipedia.org/wiki/Good_(economics_and_accounting)

http://en.wikipedia.org/wiki/ISO_9001

http://en.wikipedia.org/wiki/France

http://en.wikipedia.org/wiki/Germany


http://en.wikipedia.org/wiki/Good_(economics_and_accounting)

http://en.wikipedia.org/wiki/ISO_9001

http://en.wikipedia.org/wiki/France

http://en.wikipedia.org/wiki/Germany



revise its 197+ Reco!!endation 1+; on 4u!an Resources ,evelop!ent +J0 One vie* of

these trends is that a strong social consensus on political econo!y and a good social *elfare

syste! facilitates labor !obility and tends to !a%e the entire econo!y !ore productive5 as

labor can develop s%ills and e/perience in various *ays5 and !ove fro! one enterprise to

another *ith little controversy or difficulty in adapting0 )nother vie* is that govern!ents

should beco!e !ore a*are of their national role in facilitating hu!an resources develop!ent

across all sectors0

Contro%er)#

6abour $obilit#

)n i!portant controversy regarding labor !obility illustrates the broader philosophical issue

*ith usage of the phrase hu!an resources: govern!ents of developing nations often regard

developed nations that encourage i!!igration or guest *or%ers as appropriating hu!an

capital that is rightfully part of the developing nation and re=uired to further its gro*th as a

civiliKation0 #hey argue that this appropriation is si!ilar to colonial co!!odity fiat *herein a

coloniKing uropean po*er *ould define an arbitrary price for natural resources5 e/tracting

*hich di!inished national natural capital0

#he debate regarding hu!an resources versus hu!an capital thus in !any *ays echoes the

debate regarding natural resources versus natural capital0 Over ti!e the Bnited 8ations have

co!e to !ore generally support the developing nationsE point of vie*5 and have re=uested

significant offsetting foreign aid contributions so that a developing nation losing hu!an

capital does not lose the capacity to continue to train ne* people in trades5 professions5 and

the arts0

)n e/tre!e version of this vie* is that historical ine=uities such as )frican slavery !ust be

co!pensated by current developed nations5 *hich benefited fro! stolen hu!an resources

as they *ere developing0 #his is an e/tre!ely controversial vie*5 but it echoes the general

the!e of converting hu!an capital to hu!an resources and thus greatly di!inishing its

value to the host society5 i0e0 )frica5 as it is put to narro* i!itative use as labor in the

using society0

33



http://en.wikipedia.org/wiki/Social_welfare_system


http://en.wikipedia.org/wiki/Labor_mobility

http://en.wikipedia.org/wiki/Civilization

http://en.wikipedia.org/wiki/Colonial_commodity_fiat


http://en.wikipedia.org/wiki/Natural_resources


http://en.wikipedia.org/wiki/Natural_capital

http://en.wikipedia.org/wiki/United_Nations

http://en.wikipedia.org/wiki/African_slavery




http://en.wikipedia.org/wiki/Labor_mobility

http://en.wikipedia.org/wiki/Civilization



http://en.wikipedia.org/wiki/Natural_capital

http://en.wikipedia.org/wiki/United_Nations

http://en.wikipedia.org/wiki/African_slavery



In a series of reports of the B8 Secretary-eneral to the eneral )sse!bly e0g0 )D+D12

>2;;1?J5 a broad inter-sectoral approach to developing hu!an resourcefulness see Bnited

8ations /pert Meeting on 4u!an Resources ,evelop!ent0 NChanging (erspectives on

4u!an Resources ,evelop!ent0 S#D#C,DSR0D2+0 une 199&J J has been outlined as a

priority for socio-econo!ic develop!ent and particularly anti-poverty strategies0 #his calls

for strategic and integrated public policies5 for e/a!ple in education5 health5 and e!ploy!ent

sectors that pro!ote occupational s%ills5 %no*ledge and perfor!ance enhance!ent

>a*rence5 00S0? 7J0

Perception)

#er!s li%e hu!an resources and hu!an capital !ay be perceived as insulting to people0#hey create the i!pression that people are !erely co!!odities5 li%e office !achines or

vehicles5 despite assurances to the contrary0

Corporate $ana.e$ent

In the very narro* conte/t of corporate hu!an resources !anage!ent5 there is a

contrasting pull to reflect and re=uire *or%place diversity that echoes the diversity of a global

custo!er base0 .oreign language and culture s%ills5 ingenuity5 hu!or5 and careful listening5

are e/a!ples of traits that such progra!s typically re=uire0 It *ould appear that these

evidence a general shift through the hu!an capital point of vie* to an ac%no*ledg!ent that

hu!an beings do contribute !uch !ore to a productive enterprise than *or%: they bring

their character5 their ethics5 their creativity5 their social connections5 and in so!e cases even

their pets and children5 and alter the character of a *or%place0 #he ter! corporate culture is

used to characteriKe such processes at the organiKational level0

#he traditional but e/tre!ely narro* conte/t of hiring5 firing5 and job description is

considered a 2;th century anachronis!0 Most corporate organiKations that co!pete in the

!odern global econo!y have adopted a vie* of hu!an capital that !irrors the !odern

consensus as above0 So!e of these5 in turn5 deprecate the ter! hu!an resources as useless0

et the ter! survives5 and if related to NresourcefulnessE5 has continued and e!erging

relevance to public policy0

34



http://en.wikipedia.org/wiki/J.E.S.Lawrence


http://en.wikipedia.org/wiki/Workplace_diversity

http://en.wikipedia.org/wiki/Corporate_culture


http://en.wikipedia.org/wiki/J.E.S.Lawrence



http://en.wikipedia.org/wiki/Corporate_culture



In general the abstractions of !acro-econo!ics treat it this *ay - as it characteriKes no

!echanis!s to represent choice or ingenuity0 So one interpretation is that fir!-specific

hu!an capital as defined in !acro-econo!ics is the !odern and correct definition of

hu!an resources - and that this is inade=uate to represent the contributions of hu!an

resources in any !odern theory of political econo!y0

Hu$an re)ource) de%elop$ent

In organiKations5 in ter!s of selection it is i!portant to consider carrying out a thorough job

analysis to deter!ine the level of s%illsDtechnical abilities5 co!petencies5 fle/ibility of the

e!ployee re=uired etc0 )t this point it is i!portant to consider both the internal and e/ternal

factors that can have an effect on the recruit!ent of e!ployees0 #he e/ternal factors are thoseout-*ith the po*ers of the organiKation and include issues such as current and future trends

of the labor !ar%et e0g0 s%ills5 education level5 govern!ent invest!ent into industries etc0 On

the other hand internal influences are easier to control5 predict and !onitor5 for e/a!ple

!anage!ent styles or even the organiKational culture0

a2or trend)

In order to %no* the business environ!ent in *hich any organiKation operates5 three !ajor

trends should be considered:

• ,e!ographics ' the characteristics of a populationD*or%force5 for e/a!ple5 age5

gender or social class0 #his type of trend !ay have an effect in relation to pension

offerings5 insurance pac%ages etc0

• ,iversity ' the variation *ithin the populationD*or%place0 Changes in society no*

!ean that a larger proportion of organiKations are !ade up of baby-boo!ers or

older e!ployees in co!parison to thirty years ago0 #raditional advocates of

*or%place diversity si!ply advocate an e!ployee base that is a !irror reflection of

the !a%e-up of society insofar as race5 gender5 se/ual orientation5 etc0

• S%ills and =ualifications ' as industries !ove fro! !anual to a !ore !anagerial

professions so does the need for !ore highly s%illed graduates0 If the !ar%et is tight

>i0e0 not enough staff for the jobs?5 e!ployers *ill have to co!pete for e!ployees by

offering financial re*ards5 co!!unity invest!ent5 etc0

35


http://en.wikipedia.org/wiki/Job_analysis


http://en.wikipedia.org/wiki/Styles

http://en.wikipedia.org/wiki/Organizational_culture

http://en.wikipedia.org/wiki/Demographics


http://en.wikipedia.org/wiki/Baby-boomers




http://en.wikipedia.org/wiki/Styles

http://en.wikipedia.org/wiki/Organizational_culture

http://en.wikipedia.org/wiki/Demographics


http://en.wikipedia.org/wiki/Baby-boomers



Indi%idual re)pon)e)

In regard to ho* individuals respond to the changes in a labour !ar%et the follo*ing should

be understood:

• eographical spread ' ho* far is the job fro! the individualP #he distance to travel to

*or% should be in line *ith the pay offered by the organiKation and the *ireless

internet5 broadband5 fi/ed line5 and infrastructure of the area *ill also be an

influencing factor in deciding *ho *ill apply for a post0

• Occupational structure ' the nor!s and values of the different careers *ithin an

organiKation0 Mahoney 1969 developed " different types of occupational structure

na!ely craft >loyalty to the profession?5 organiKation career >pro!otion through thefir!? and unstructured >lo*erDuns%illed *or%ers *ho *or% *hen needed?0

• enerational difference 'different age categories of e!ployees have certain

characteristics5 for e/a!ple their behavior and their e/pectations of the organiKation0

Recruit$ent $ethod)

@hile recruit!ent !ethods are *ide and varied5 it is i!portant that the job is described

correctly and that any personal specifications are stated0 ob recruit!ent !ethods can be

through job centres5 e!ploy!ent agenciesDconsultants5 headhunting5 and localDnational

ne*spapers0 It is i!portant that the correct !edia is chosen to ensure an appropriate response

to the advertised post0

@here organisations donEt have the internal resource to be able to conduct an effective

recruit!ent e/ercise this is *here they !ay outsource this to a third party5 typically a

recruit!ent or hr consultancy that specialiKes in the area that the organisation re=uires0

9ra$e7or5

4u!an Resources ,evelop!ent is a fra!e*or% for the e/pansion of hu!an capital *ithin an

organiKation or >in ne* approaches? a !unicipality5 region5 or nation0 4u!an Resources

,evelop!ent is a co!bination of training and education5 in a broad conte/t of ade=uate

health and e!ploy!ent policies5 that ensures the continual i!prove!ent and gro*th of both

the individual5 the organisation5 and the national hu!an resourcefulnes0 )da! S!ith states5

36



Q#he capacities of individuals depended on their access to education0 6J 4u!an Resources

,evelop!ent is the !ediu! that drives the process bet*een training and learning in a

broadly fostering environ!ent0 4u!an Resources ,evelop!ent is not a defined object5 but a

series of organised processes5 Q*ith a specific learning objective >8adler5196&?9J @ithin a

national conte/t5 it beco!s a strategic approach to intersectoral lin%ages bet*een health5

education and e!ploy!ent01;J

3tructure

4u!an Resources ,evelop!ent is the structure that allo*s for individual develop!ent5

potentially satisfying the organiKationHs5 or the nationEs goals0 #he develop!ent of the

individual *ill benefit both the individual5 the organiKation5 or the nation and its citiKens0 Inthe corporate vision5 the 4u!an Resources ,evelop!ent fra!e*or% vie*s e!ployees5 as an

asset to the enterprise *hose value *ill be enhanced by develop!ent5 QIts pri!ary focus is on

gro*th and e!ployee develop!entit e!phasises developing individual potential and

s%ills >l*ood5 olton and #rott 199?11J 4u!an Resources ,evelop!ent in this treat!ent

can be in-roo! group training5 tertiary or vocational courses or !entoring and coaching by

senior e!ployees *ith the ai! for a desired outco!e that *ill develop the individualHs

perfor!ance0 )t the level of a national strategy5 it can be a broad intersectoral approach to

fostering creative contributions to national productivity 12J

Trainin.

)t the organiKational level5 a successful 4u!an Resources ,evelop!ent progra! *ill

prepare the individual to underta%e a higher level of *or%5 QorganiKed learning over a given

period of ti!e5 to provide the possibility of perfor!ance change >8adler 196&?0 In these

settings5 4u!an Resources ,evelop!ent is the fra!e*or% that focuses on the organiKationsco!petencies at the first stage5 training5 and then developing the e!ployee5 through

education5 to satisfy the organiKations long-ter! needs and the individualsH career goals and

e!ployee value to their present and future e!ployers0 4u!an Resources ,evelop!ent can be

defined si!ply as developing the !ost i!portant section of any business its hu!an resource

by5 Qattaining or upgrading the s%ills and attitudes of e!ployees at all levels in order to

!a/i!ise the effectiveness of the enterprise >3elly 2;;1?1"J0 #he people *ithin an

organiKation are its hu!an resource0 4u!an Resources ,evelop!ent fro! a business

perspective is not entirely focused on the individualHs gro*th and develop!ent5

37

















Qdevelop!ent occurs to enhance the organiKationEs value5 not solely for individual

i!prove!ent0 Individual education and develop!ent is a tool and a !eans to an end5 not the

end goal itself0 >l*ood .0 4olton II5 a!es @0 #rott r?1&J0 #he broader concept of national

and !ore strategic attention to the develop!ent of hu!an resources is beginning to e!erge as

ne*ly independent countries face strong co!petition for their s%illed professionals and the

acco!panying brain-drain they e/perience0

odern concept of hu$an re)ource)

#hough hu!an resources have been part of business and organiKations since the first days of

agriculture5 the !odern concept of hu!an resources began in reaction to the efficiency focus

of #ayloris! in the early 19;;s0 $y 192;5 psychologists and e!ploy!ent e/perts in theBnited States started the hu!an relations !ove!ent5 *hich vie*ed *or%ers in ter!s of their

psychology and fit *ith co!panies5 rather than as interchangeable parts0 #his !ove!ent

gre* throughout the !iddle of the 2;th century5 placing e!phasis on ho* leadership5

cohesion5 and loyalty played i!portant roles in organiKational success0 )lthough this vie*

*as increasingly challenged by !ore =uantitatively rigorous and less soft !anage!ent

techni=ues in the 19;s and beyond5 hu!an resources develop!ent had gained a per!anent

role *ithin organiKations5 agencies and nations5 increasingly as not only an acade!ic

discipline5 but as a central the!e in develop!ent policy0

38


http://en.wikipedia.org/wiki/Taylorism


http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Human_relations


http://en.wikipedia.org/wiki/Psychology

http://en.wikipedia.org/wiki/Leadership




http://en.wikipedia.org/wiki/United_States


http://en.wikipedia.org/wiki/Psychology




#he teleco! industry is one of the fastest gro*ing industries in India0 India has nearly 2;;

!illion telephone lines !a%ing it the third largest net*or% in the *orld after China and BS)0

@ith a gro*th rate of &+T5 Indian teleco! industry has the highest gro*th rate in the *orld0

4istory of Indian #eleco!!unications started in 16+1 *hen the first operational land lines

*ere laid by the govern!ent near Calcutta >seat of $ritish po*er?0 #elephone services *ere

introduced in India in 16610 In 166" telephone services *ere !erged *ith the postal syste!0

Indian Radio #elegraph Co!pany >IR#? *as for!ed in 192"0 )fter independence in 19&75 all

the foreign teleco!!unication co!panies *ere nationaliKed to for! the (osts5 #elephone and

#elegraph >(##?5 a !onopoly run by the govern!entEs Ministry of Co!!unications0 #eleco!

sector *as considered as a strategic service and the govern!ent considered it best to bring

under stateEs control0

#he first *ind of refor!s in teleco!!unications sector began to flo* in 196;s *hen the

private sector *as allo*ed in teleco!!unications e=uip!ent !anufacturing0 In 196+5

,epart!ent of #eleco!!unications >,O#? *as established0 It *as an e/clusive provider of

do!estic and long-distance service that *ould be its o*n regulator >separate fro! the postal

syste!?0 In 1965 t*o *holly govern!ent-o*ned co!panies *ere created: the idesh

Sanchar 8iga! i!ited >S8? for international teleco!!unications and Mahanagar

#elephone 8iga! i!ited >M#8? for service in !etropolitan areas0 In 199;s5

teleco!!unications sector benefited fro! the general opening up of the econo!y0 )lso5

e/a!ples of teleco! revolution in !any other countries5 *hich resulted in better =uality of

service and lo*er tariffs5 led Indian policy !a%ers to initiate a change process finally

resulting in opening up of teleco! services sector for the private sector0 8ational #eleco!

(olicy >8#(? 199& *as the first atte!pt to give a co!prehensive road!ap for the Indian

teleco!!unications sector0 In 19975 #eleco! Regulatory )uthority of India >#R)I? *as

created0 #R)I *as for!ed to act as a regulator to facilitate the gro*th of the teleco! sector0

8e* 8ational #eleco! (olicy *as adopted in 1999 and cellular services *ere also launched

in the sa!e year0

#eleco!!unication sector in India can be divided into t*o seg!ents: .i/ed Service (rovider

>.S(s?5 and Cellular Services0 .i/ed line services consist of basic services5 national or

do!estic long distance and international long distance services0 #he state operators >$S8

and M#8?5 account for al!ost 9; per cent of revenues fro! basic services0 (rivate sector

services are presently available in selective urban areas5 and collectively account for less than

39



+ per cent of subscriptions0 4o*ever5 private services focus on the businessDcorporate sector5

and offer reliable5 high- end services5 such as leased lines5 IS,85 closed user group and

videoconferencing0

Cellular services can be further divided into t*o categories: lobal Syste! for Mobile

Co!!unications >SM? and Code ,ivision Multiple )ccess >C,M)?0 #he SM sector is

do!inated by )irtel5 odafone-4utch5 and Idea Cellular5 *hile the C,M) sector is

do!inated by Reliance and #ata Indico!0 Opening up of international and do!estic long

distance telephony services are the !ajor gro*th drivers for cellular industry0 Cellular

operators get substantial revenue fro! these services5 and co!pensate the! for reduction in

tariffs on airti!e5 *hich along *ith rental *as the !ain source of revenue0 #he reduction in

tariffs for airti!e5 national long distance5 international long distance5 and handset prices has

driven de!and0

9iBed4a)ic Net7or5 3er%ice)

)lthough nearly a decade has elapsed since India laid out a regulatory fra!e*or% for the

liberaliKation of basic teleco! services5 co!petition in fi/ed local loop telephone services5 so

far5 e/tends to only a fraction of the total population0 Co!petitive entry has focused

principally on services for urban custo!ers in relatively affluent areas0 ven the pattern of

s*itching capacity >*hich indicates the capacity in a circle? indicates that around +7T of the

s*itching capacity of the private operators at end-Septe!ber 2;;" *as in !etros and

Category ) circles0 .urther5 an esti!ated 6T of the fi/ed net*or% telephone connections of

private operators at end-March 2;;& *ere in !etros and Category circles0

In ter!s of subscriber connections5 private operators had a !ar%et share of around +0+T at

end-.2;;&5 as co!pared *ith 20"T at end-.2;;"5 and 10+T at end- .2;;20 @hile

private operators accounted for 2+T of subscriptions in urban areas at end-March 2;;& >17T

at end-Septe!ber 2;;"?5 their !ar%et share in rural areas *as negligible at ;02T >;02T at

end-Septe!ber 2;;"?0 $ecause subscriber density and inco!e >and ability to pay? are lo*5

providing access in rural areas is unprofitable because of the higher costs and lo*er revenues0

#he cost of providing telephone service in rural areas is !uch higher than in urban or

suburban areas0 #he de!and for profitable long distance services and value -added fa/ and

Internet services is insignificant in rural areas0 )bove -cost long distance services are often

bundled *ith cheaper local services in urban areas0

40



Cellular 3er%ice)

.or cellular SM and C,M) services5 there presently e/ists significant e/tent of

co!petition in nearly all service areas0 In SM services5 during anuary 2;;+5 of the 2"

service areas >reduced fro! 2& after the !erger of )<8 Islands into the @$ circle?5 fourteen

service areas had & operators5 seven service areas had " operators5 and t*o service areas had

2 operators5 and one had only one licensed operator0 4o*ever5 the intensity of co!petition is

higher in Metros and Category ) circles5 *hich have higher potential and penetration0 .or

e/a!ple5 all the four !etros and five Category ) service areas had four licensed operators0

$y co!parison5 si/ out of 6 Category $ circles5 and none of Category C circles had four

operators0

Increasingly SM service providers are facing co!petition digital C,M) based *ireless

services0

Bnli%e SM5 *hich offers sea!less national and international roa!ing5 @-M services

did not offer roa!ing0 4o*ever5 C,M) !obile services are5 currently5 co!petitive on

product offerings and prices as co!pared *ith cellular SM services0 )t end-2;;&5 there

*ere an esti!ated 110;6 !illion C,M) !obile connections5 as co!pared *ith "70"6 !illion

cellular subscriptions0 #hus5 C,M) subscriptions accounted for 2209T of the total *ireless

!obile connections in India at end-,ece!ber 2;;&0

National 6on. Di)tance

#he Indian 8, !ar%et *as esti!ated at around Rs0 +; billion during .2;;&0 $ecause of

the significant decline in prices of 8, services caused by regulatory interventions and

!ar%et co!petition5 the 8, !ar%et has declined fro! around Rs0 +9 billion during .2;;"0

#hough the nu!ber of !inutes of 8, traffic has increased5 the !ar%et has shrun% because

of intense co!petition bet*een the various operatorsU$S85 $I5 RI5 and S80

Co!petition is steadily leading to a decline in 8, prices as they !ore accurately reflect

true costs0 4o*ever5 long-distance service hinges on access to local net*or%s5 *hich for no*

is controlled by $S85 M#85 and private operators such as $#5 and Reliance0

ong-distance service hinges on access to local net*or%s0 #hus5 ne* entrants *ithout a

significant fi/edDcellular local access custo!er base *ill have to use the custo!er access

41



net*or%s of the e/isting local access net*or% operators >fi/ed and cellular? to originate and

ter!inate their traffic0

International 6on. Di)tance

#he Indian I, !ar%et *as esti!ated at around Rs0 &" billion during .2;;&0 $ecause of

the significant decline in prices of I, services caused by regulatory interventions and

!ar%et co!petition5 the I, !ar%et has declined fro! around Rs0 +; billion during .2;;"0

#hough the nu!ber of !inutes of I, traffic has increased fro! "07 billion during .2;;"

to +02 billion during .2;;&5 the !ar%et has declined in value ter!s because of intense

co!petition bet*een the various operatorsUS85 ,)I5 $I5 and RI

• In the pre-refor! period5 gro*th *as pri!arily driven by public sector !onopoly

sho*ing very !arginal gro*th0

• Refor! process *as started *ith ne* teleco! policy 199&0

• @hen teleco! refor!s *ere initiated in 199&5 there *ere three incu!bents in the fi/ed

service sector5 na!ely ,o# >,epart!ent of #eleco!?5 M#8 and S80

• Of these5 ,o# operated in all parts of the country e/cept ,elhi and Mu!bai0 M#8

operated in ,elhi and Mu!bai and S8 provided international telephony0

Ne7 Teleco$ Polic# 0*

• In 199&5 the overn!ent announced the 8ational #eleco! (olicy *hich defined certain

i!portant objectives5 including availability of telephone on de!and5 provision of *orld

class services at reasonable prices5 ensuring IndiaHs e!ergence as !ajor !anufacturing D

e/port base of teleco! e=uip!ent and universal availability of basic teleco! services to

all villages0

• 8#( 199& also recogniKed that the re=uired resources for achieving these targets *ould

not be available only out of overn!ent sources and concluded that private invest!ent

and involve!ent of the private sector *as re=uired to bridge the resource gap0 #he

overn!ent invited private sector participation in a phased !anner fro! the early

nineties5 initially for value added services such as (aging Services and Cellular Mobile

42



#elephone Services >CM#S? and thereafter for .i/ed #elephone Services >.#S?0 )fter a

co!petitive bidding process5 licenses *ere a*arded to 6 CM#S operators in the four

!etros5 1& CM#S operators in 16 state circles5 $#S operators in state circles and to

paging operators in 27 cities and 16 state circles0 S)# services *ere liberalised for

providing data services to closed user groups0 icences *ere issued to 1& operators in the

private sector out of *hich only nine licensees are operational0

Ne7 Teleco$ Polic# 00

• )ccess to teleco!!unications is of ut!ost i!portance for achieve!ent of the countryEs

social and econo!ic goals0 )vailability of affordable and effective co!!unications for

the citiKens is at the core of the vision and goal of the teleco! policy0

• Strive to provide a balance bet*een the provision of universal service to all uncovered

areas5 including the rural areas5 and the provision of high-level services capable of

!eeting the needs of the countryEs econo!yF

• ncourage develop!ent of teleco!!unicationfranchising syste!in re!ote5 hilly and

tribal areas of the countryF

• Create a !odern and efficient teleco!!unications infrastructure ta%ing into account the

convergence of I#5 !edia5 teleco! and consu!er electronics and thereby propel India

into beco!ing an I# superpo*erF 0

• #ransfor! in a ti!e bound !anner5 the teleco!!unications sector to a greater

co!petitive environ!ent in both urban and rural areas providing e=ual opportunities and

level playing field for all playersF

• Strengthen research and develop!ent efforts in the country and provide an i!petus to

build *orld-class !anufacturing capabilities0

• nable Indian #eleco! Co!panies to beco!e truly global players0

In line *ith the above objectives5 the specific targets that the 8#( 1999 tried to achieve

*ere:

43



• #o encourage develop!ent of teleco! in rural areas !a%ing it !ore affordable by suitable

tariff structure and !a%ing rural co!!unication !andatory for all fi/ed service

providers0

• #o increase rural teledensity fro! the current level of ;0& to & by the year 2;1; and

provide reliable trans!ission !edia in all rural areas0

• )chieve teleco! coverage of all villages in the country and provide reliable !edia to all

e/changes by the year 2;;20

44



•

9i.1: Tele-Den)it# ro7th Po)t-Refor$

.ro! the above graph *e see that:

• ro*th started in phase I of the refor! 1996-2;;"0

• ro*th during phase I *as not e/ponential due to the apprehensions private players

had for the govern!ent policies0

• (hase II gro*th *as !obile driven and *as conse=uent to certain decisions ta%en by

the govt0

#R)I facilitated huge reduction in forborne tariffs in 2;;"-;+0

)llo*ed handsets sales in instal!ents0

• #he gro*th in tele-density each year in 2;;"-;& >2T? and 2;;&-;+ >2T? has been

greater than the gro*th in the last +; years 19&6-960

• In phase III each year the gro*th has been greater than &0+T

ichael Porter) 9i%e force) $odelF describes the threats to a co!panyHs co!petitive

advantage in an industry0 4ere is a brea%do*n of the five forces !odel:

1& ,egree of ri%alr# of e/isting industry co!petitors0

45



"& ,egree of barrier) to entr# by ne* co!petitors in the industry0

(& #hreat of )ub)titute productsDservices0

*& $argaining po*er of bu#er)&

& $argaining po*er of )upplier)&

$elo* are five areas that e/e!plify the concepts of the Qfive forces and sho* ho*

trends can really be pressures on an organiKationHs co!petitive nature:

• Indu)tr# Con)olidation: )s in the *ireless D cellular service provider !ar%et5 this

can !ean threats fro! e/isting co!panies *ho consolidate their position and ac=uire

additional !ar%et share by purchasing their co!petition >Rivalry?0

• >irele)) 6ocal-Area Net7or5): #he Internet and broadband-based oI( !ar%et

could soon face co!petitors fro! the *ireless D cellular service providers

>Substitutes? via *ireless local area net*or%s5 @)8s0

• 3ecurit#9raud: @hen *e thin% about using a free oI( service5 li%e S%ype5 *e do

not necessarily thin% about fraud0 4o*ever5 *hen you start loo%ing at the pay oI(

services5 fraud beco!es a !uch larger issue >$arriers to ntry?0

• Pricin.: @ireless D cellular and traditional phone service providers have seen

de!ands fro! consu!ers dr

46



for project

sunil %hare

;7;&9777"+"

law of contracts at airtel

Documents