15Talent management : Opportunities &challenges for industry 4.0

This diversity loaded with technological innovations hasmade the job of a manager even more herculean. Thisarticle intends to draw the attention of managers towardsthe diverse range of employees available in today's digitaltimes and how they can craft the best talent pool to achieveorganizational objectives. An article by Payal Johari

42Future of workplace - 2025

Most businesses agree that the future ofwork will be rooted in technology, fromcloud-based software to AI. But technologyon its own isn't enough. People, not justtechnology, will define the future of work.An article by Dr. Aparna Sharma

12Salient Features of IndustrialRelations Code -2019

The next one code which has now beenpresented in Lok Sabha on 28.11.2019 subsumesThe Industrial Disputes Act 1947. An article byAnil Kaushik

IN EVERY ISSUE

Response

From the Editor’s Desk

HR News

Guest Column by Dr. Vinayshil Gautam

05

08 HR Movement 0906 07

Coerced leapfrogging andexecution excellence

In This Issue

C O V E R F E A T U R E

www.businessmanager.in 3 BUSINESS MANAGER | JANUARY 2020

Emotional intelligence – the essential skillset for the age of AI : Survey 10-1114 Techno- Human era

of industry 4.0

Now it is time to take "Industry 4.0" 4thGeneration in technology for HR inmanufacturing. An article by Dr. Sandeep Kumar Joshi & Dr. Ashu Sharma

1 8 - 4 1

HRffoorrNon HR

Towards developing effective non

HR universe- BM Editorial Team

Engaging and enlisting non HRmanagers -Dr. Arun Kumar Sinha

The HR and its realm : In the line of fire -Prashant Sharma

The integrated strength of HR and non-HR managers -Amit Das

The world of HR for non HRmanagers -Chandan Chattaraj

HR has to play a stellar role in skilling non-HR -Naveen Kumar

Talents in the making in theworld of HR -Nadeem Kazim

Challenging the fundamentals ofHRM : Are we? -Sai Suryanarayana

(UN) divided by the notion of 'People' -Dr. Prasanth Nair

The non HR bandwagon and the big deal -Dr. Jignesh Shah

Skills and competencies of non-HR managers -Dr. Sanjay Muthal

www.businessmanager.in 4 BUSINESS MANAGER | JANUARY 2020

65&66Supreme Court Labour Judgments

(2014-2018)

Alchemy of Change

Flipside of Management : 7 Funny Tales

59Conducting proceedings undersection 7A of the EPF Act

Provided that no such order shall be setaside merely on the ground that there hasbeen an irregularity in the service of theshow-cause notice. An article by H.L. Kumar

From the

Court Room

52-58

BOOK LEARNING

50Solutions provided here are in context to narrated facts & not in general.

Anil Kaushik Management Expert -HR & IR

The most underratedmanagement tool - FEEDBACK

Contrary to popular belief, feedback is notlimited to criticism or has to be negative all thetime. Negative feedback and criticism are buttypes of feedback and ones that managers andleaders from consciously stay away from. An article by Sanjeev Himachali

44In This Issue

LINE

RECENT IMPORTANT

LABOUR JUDGMENTS

1.

2.3.

66 EVENT REPORT

NNaattiioonnaall rreesseeaarrcchh mmeetthhooddoollooggyy wwoorrkksshhoopphheelldd aatt SSVVVVVV,, IInnddoorree

61CASE STUDY

Why MAIL should not FAIL

-Pawan Kumar Singh

62-64Leader should listen to team also

- Sandiep Grovar

Leadership should have done SWOT analysis- Mihir Gosalia

CASE ANALYSIS

1.

2.

Man appreciates and Machinedepreciates

Behaviour of every human being is goaloriented. Every creature work to get some resultbut now and again the situation andcircumstances are developed in which he isunable to get the desired result. An article byAlok Kumar Srivastava

46

Role of Blockchain inRecruitment

An article by Dr. Chandan Medatwal

48

Creating balance between leaves & work

Think, do you really need leaves. If not, then donot take. Avoid taking it, only because it willlapse. Take only when your body or mind needsit. An article by Shraddhanjali Sonune

49

CHIEF EDITOR

ANIL KAUSHIK

ASSOCIATE EDITOR

ANJANA ANIL

EXECUTIVE EDITOR

JAYSHREE DUTT

DESIGN & DIGITAL

SATENDER TEJ ARUN

SUBSCRIPTION

GIREESH KUMAR DIXIT

HON'Y EDITORIAL BOARD

Dr. T.V. Rao

Dr. Vinayshil Gautam

H. L. Kumar

Dr. Rajen Mehrotra

Owned, Published and Printed by Anil Kaushik at Sun Prints, Ganpati Tower, Nangli Circle, Alwar - 301001andPublished From B-138, Ambedkar Nagar, Alwar - 301001 (Raj.) India. Editor : Anil KaushikThe views expressed in the articles published in Business Manager are those of the authors only and not necessarilyof the Publisher/Editor.While every effort is made to have no mistake in the magazine, errors do occur. Publishers do not own anyresponsibility for the losses or damages caused to any one due to such ommissions or errors.

This issue of Business Manager contains 68 pages including cover

JANUARY 2020

Good. Interesting subject.

Sanjeev Sharan

Good to explore experts views.

Gajendra Harishanker

Very detailed info.crisp and clear Salil.

Ajay Mahindrakar

God to read Subir Sinha article...

Dr. Partha Raut

Informative and impactful doc.

Vijay Kamath

Very well articulated views by Sunaina.

Rashmi Sachdeva

Annual Subscription Rs. 1300/- through DD (by ordinary Book-Post) (by Courier/Registry Rs. 1600/-) favouring Business Manager may be sent to: B-138, Ambedkar Nagar, Alwar - 301001 (Raj.) India

Mob.: 09785585134, 07665913854www.businessmanager.in E-mail : subscription@businessmanager.in, bmalwar@gmail.com

Published on 1st of Every Month

DECEMBER 2019 ISSUE

Visit us on:

BUSINESS MANAGER

VALUES YOUR FEEDBACK. WRITE

TO US WITH YOUR SUGGESTIONS

AND IDEAS ATinfo@businessmanager.in

https://www.facebook.com/businessmanagerhrmagazine

Be ready!Very well picked up the cover story and theauthor’s have very deeply comprehended thetrends of 2019 that captured the HR world. Eachone in some way has highlighted the impact oftechnological changes that will going totransform the HR function. The shift is clear. Oldskills are not going to be relevant. Automation inpeople processes will dominate, be it talentmanagement or performance management. Thebig question is are we HR people ready to takeon? Monika Sharma

RESPONSE

www.businessmanager.in 5 BUSINESS MANAGER | JANUARY 2020

India s Best HR Magazine

Making HR People Complete

PracticalGreat Sir... The analysis of the case done by RakeshSrivastav is really based on practical aspects...

Ravi Kumar

ValuableCoaching well defined by Sandeep. Article carryacadmic value.

Ravindra Pareek

RefreshingA lot has been written on the recruitmentprocess but what Subir Sinha has put in hisarticle is quit refreshing and relevant. Thewriter very rightly cautions about the pit fallsin selection process.

Govind R.

Best oneCase study section of the magazine is best onefor me. It helps developing analytical skills andi have experienced it. Archan Mehta

It matters!Pramod Singh’s article on Power of Perception isuniqe and is an interesting read. Much of theconflicts can be resolved if every one checks hisperception frequently and make corrective actionsby understanding others thoughts with neutralperspective.

Lokesh Varma

InformativeArticle about performance review discussionsby Yashwant Bhaid is very informative,practical and provide good learning. Theessence of performance management is theeffectiveness of mutual discussion withtransparency and trust.

Rajiv Khatri

InsightfulGreat insights again on a very relevant topic.much interesting collection of intellectualminds. Kudos to team.

LS Murthy

QualitativeAnother great issue of BM in the pipeline.Compliments for your perseverance, qualityfocus and intellectual richness.

Viren P Singh

When we enter into 2020 of fast changing business environment with newhopes, where managerial and leadership skills are also under transformation,certain things are still left behind and not much attention has been paid to fillthe gap and complete the loop. One of the harsh realities is that still in most ofthe industries non HR managers have not been skilled enough to take on thepeople management issues. There is still is a wide gap in perception that HRfunction is not for technical managers. This divide in technical and HR functionhas always made people issues more complex when it comes to their resolution.It has taken decades to make non HR managers understand that people functionis not confined to only HR professionals.

What required is to orient non HR managers and align the perception with HRmanagers so that both think and act in the same wave length. Though HR isspecialised in their function but non HR managers cannot afford to be away frompeople management skills like counselling, feedback, communicating withsubordinates, peers and seniors, keeping their people in a team bonding and soon. Non HR managers have to sharpen these skills day by day while dealing withtheir people. They are the real HR managers because the workplace conflict isinevitable being employees representing different work styles and personalitiesand it is for them to build a positive workplace relationship and understand thenuances of interpersonal skills to resolve conflicts.

The problem is that neither technical managers have expressed interest towardsthese skills nor HR professionals or top management paid much attention tobuild HR competencies in non HR managers. They are kept restricted to meetingproduction targets and other operational activities. The foundation of theapproach that we don't do HR is wrong. People are not retained by HR managerin organisation. It is their immediate manager who retains them and nurtures. Hehas to be a coach and mentor too in respect of his subordinates. Most of theissues erupt between employees and their managers when managers are notable to develop trust. They make unaccessable to them thus lose the respect.Employees don't look up at HR manager for all their issues. They look up at theirmanagers.

HR Professionals in their organisation also need to play an important role inpreparing non HR managers to deal with people issues effectively. They shouldbe made fully aware of different employment laws, organisation rules, policiesand empower technical managers to handle people issues independently atfloor level. HR should play role of a facilitator only and non HR managers shouldbe made accountable for managing their people issues.

This edition cover story depicts HR’s importance for non HR and how byadopting a collaborative approach, HR function should be practiced at all levelsto build an institution where human capital makes the difference. Industryexperts and top HR professionals draw a road map by underlining its relevance.

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

Happy Reading and wishing you a progressive 2020!

Building HR competencies

January 2020Vol. 22, No. 7

@ tdanilanilkaushik

anilkaushik

FROM THE EDITOR’S DESK

Anil Kaushik

www.businessmanager.in 6 BUSINESS MANAGER | JANUARY 2020

(This case study has been written in thebackdrop of china Olympics andSubprime effect witnessed in 2008)

MAIL (Metal and Alloy IndiaLimited) is a flagship steelcompany with its corporate

office in Mumbai. It has four integratedsteel plant in its fold. All the four steelplants are headed by CEOs who report toChairman and Managing Director incorporate office.

CMD (Chairman & Managing Director)Sri Anirudh Suryavanshi invited all theCEOs and directors to chalk out futurestrategies and also to celebrate thecompany's spectacular performance as ithad earned profit of 5000 cr straight inthree consecutive years.

"What a marvellous performance saidthe CMD, we have outshined all ourcompetitors. In this financial year (2001-02) we have produced 15 million tonnes ofsteel which is 2 million tonnes more thanour target. It is indeed a milestone for us.For three consecutive years we havemaintained our performance and profit."

"Friends as we know that steel industryis cyclic withits own ups and downs. Nowthe dull phase is over. There is greatdemand of steel across the globe. Thereis huge demand of steel for theconstruction of stadiums, sports villageand other infrastructures for upcomingOlympics (2008) in China. Real Estateand infrastructure projects are boomingall over the world particularly in MiddleEast. Housing, infrastructure andmodernisation of railways in India arein full swing. All these development haveopened up new vistas of opportunitiesfor us and we need to cash in on thissurge in the demand of steel. With ourexisting set up we would not be able meetthe bombing demand of steel. We need toexpand the capacity of our existingplants through modernization. Butmodernization of our existing plantalone is not going to serve the purpose.We need to acquire a steel plant with 2.5million tonnes crude steel production.Director Project Sri Adirath Abhimanyu

has been entrusted to scout for the steelplant to be acquired. Mr. Adirath, kindlythrow some light on the extent of theaccomplishment of the given task, saidthe CMD."

Director Projects- Sir, after duediligence finally my team has zeroed inon an integrated steel plant namedKISCO (Kaveri Iron and SteelCompany).It has its own iron and coalmines which can make us self-sufficientfor the next 50 years. It is well connectedthrough rail and roads. It is located onthe bank of a river and has hugepile/cache of land. But it has followingdemerits

1) Militant Trade Union

2) Poor work culture

3)Very old plant and obsolete Technology

4) Huge liability.

CMD- I don't see any problem as we canmanage IR issues. As far as ageing plantand obsolete technology is concerned, wecan go for green field modernisation(green fieldproject - the project whichstarts from scratch) rather than brownfield expansion (brown field project-modernizing/ expanding the existingproject). Let's have the view of ourDirector Finance.

Director Finance- Sir, Expansion of allour existing units, acquisition of KISCOand its subsequent green field expansionwill put the organisation at risk as itwould need Rs 70000 Cr which is 60 %more than the net worth of the company.Recently we have come out of the grip ofpatchy phase and on the top of that wehave a debt of Rs 20000Cr. Cost of rawmaterial has increased astronomically aswe do not have any control over importedcoals used in steel making .Wagerevision of our employees will we due innext two years. Moreover, completion ofexpansion and green field modernizationon time will be a herculean task. As perthe data available, not a single green filedsteel project has been completed on timeresulting in cost escalation nearly by twofold. Ours is cyclic industry and the

current boom may not continue for long.

CMD- Be optimistic, do not see thethings from myopic vision. Steelindustry is booming and this upwardtrend will continue for a long period.This is time when we can fill up ourcoffer. Let's cash on this goldenopportunity.

Finally following decisions were taken toexploit the surge in the global steeldemand

1) Brown field expansion in the fourexisting integrated steel plant.

2) Acquisition of KISCO.

3) Green filed modernisation of KISCO.

In the next three month, blue print forthe next course of action was prepared.After another six months, expansion ofexisting four units kick started alongwith the acquisition of KISCO. MAILroped in NIXON Steel as consultant forthe green field modernisation of newlyacquired KISCO. Modernization ofKISCO was expected to complete in 2005,threeyear before China Olympics.

NIXON steel is the subsidiary ofconstruction and mining giant JupiterGlobal Limited (JGL). JGL specialises inexecuting turnkey projects pertaining toinfrastructures (Road, bridges, Damsand rail), Petrochemicals, power plantsand high rise buildings. Recently itsconstruction division forayed intoexecuting EPC/turnkey projects for steelindustry through its subsidiary NIXONsteel. A part from construction, JGLenjoys monopoly in mining as the majorchunk of coal and iron ores of thecountry is owned by the group. JGL isthe biggest consumer of steel producedby MAIL. Similarly MAIL is also the

Why MAIL shouldnot FAIL

CA

SE

ST

UD

Y

1. Discuss about the leadershipquality and business acumen ofCMD.

2. How MAIL should come out ofthis difficult situation?

Pawan Kumar SinghManager (Personnel), SAIL-ISP

www.businessmanager.in 61 BUSINESS MANAGER | JANUARY 2020

www.businessmanager.in 62 BUSINESS MANAGER | JANUARY 2020

biggest consumer of coal and iron oresmined by JGL. Since both the companiesare each other's biggest customer, theyhad signed an agreement to prefer oneanother in buying their products andservices. By the virtue of the saidagreement, NIXON Steel was appointedas a consultant with an estimatedexpenditure of 3000 crores for the greenfield modernization of newly acquiredplant KISCO. The green fieldmodernization of KISCO was expected tocomplete in 2005, three years before thechina Olympics (2008).To make thetrained manpower available for the newunits to be commissioned throughmodernization and expansion, MAILrecruited 3000 employees. As mentionedearlier, NIXON steel was newly createdsubsidiary of JBL. It was a five year oldcompany with expertise in brown fieldconstruction projects for steel industries.NIXON steel had never executed any

green field project in the past. In fact itdid not have any expertise to executegreen field projects of worth 3000 crore.With very little expertise and recourses,NIXON went ahead with themodernization of KISCO as the latterwas cash cow for the former. It floatedglobal tender and engaged 143 nationaland international contractors and sub-contractors for the execution of theproject. With limited expertise andresources, NIXON failed to keep tab onthe contractors and sub-contractors andso was the MAIL. As a result, the projectwas marred with delays. The project costescalated from 3000 crores to 9000 crores.By the time the Greenfieldmodernization of KISCO and Brownfield expansion of other four units ofMAIL got completed in 2010, ChinaOlympic was over and the globaleconomy was hit by subprime effect.MAIL failed to cash on the booming steel

demand resulted from the surge ininfrastructural projects across the globeand especially in china due to theupcoming Olympics games. With theonset of subprime effect, the globaldemand of steel came crashing down.The story did not end here. To add toMAIL's woes, the cost of imported coalsky rocketed due the flooding of mines inAustralia and United States.

(Sixty percent of the coal used in IndianSteel industries is imported fromAustralia and United States. Importedcoals are expensive and one of the mostimportant raw materials used in steelmaking). WorkersUnions starteddemand for wage revision as it was duesince 2008. With burgeoning debt, poordemand of steel, additional 3000employees on the rolls, increasing cost ofraw materials and demand for wagerevision, MAIL was sitting on a tickingtime bomb.

Leadership Quality of the CMD

"In reality, there are very few villainswho view themselves as villains. Theyjust have a certain agenda at a certaintime." -Michael Jai White

When the leader is hell benton pushing his (hidden)agenda, irrespective of

divergent views from the core team,then those team members are virtuallynot with the leader. These memberswould start to question the motives,words and actions. Soon the leaderloses the trust and without trust, theleader loses his ability to influence others.

Some data provided in the currentcase: The CMD, Mr. AnirudhSuryavanshi, is upbeat about MAIL's

performance in a year - the companyover-achieved its performance by 13%(that too for a year). Mind you, MAILhas a debt of 20000 Cr and the cost ofthis adventure was over 70000 crores,that were 60% more than the net worthof the company, as pointed out byDirector Finance. Besides, the DirectorFinance also takes the help of data topoint out that not even a single greenfield steel project has been completedon time.

But all this fails to cut any ice andCMD successfully pushes his agenda.As per the limited data given in thecase, where CMD's conduct and leadership style is largely implied andnot explicitly depicted in the case, theleadership style of CMD appears to bean Autocratic Leadership.

The CMD made a very risky deci-sion without discussing or debatingabout the data presented by none otherthan his Director Finance. Let's imag-ine the stature of Director Finance. Hemust be a qualified professional withat least 20 - 25 years of post-qualifica-tion experience with proven perform-ance to have reached this level. Havinggathered authentic data on the compa-ny's financial performance and fate ofother such green field projects over thepast couple of years, the DirectorFinance deserved a much betterchance to explain his stance and pres-ent a "Best Case" and a "Worst Case"scenario, to enable the CMD to take aninformed decision. If this was done, Iam sure, the CMD would have been bet-ter prepared and either not taken this

CA

SE

AN

ALY

SIS

Leader should listento team alsoSandiep Grovar

Senior HR Consultant, Mumbai

I

BM

WHY MAIL SHOULD NOT FAIL

LEADER SHOULD LISTEN TO TEAM ALSO

www.businessmanager.in 63 BUSINESS MANAGER | JANUARY 2020

misadventure ahead or would be mind-ful of the facts and made enoughchecks and balances to ensure timelyimplementation of the projects,instead of a unpardonable delay of 5years- that led to MAIL's current situa-tion having missed the bus for 2008Olympics miserably.

As against that, he is told curtly "Beoptimistic, do not see things from amyopic vision". Whereas the DirectorFinance had not shared any of his personal views - he had only presentedhard data!!!

Under such circumstances, leaveaside, this astute professional, anyone

can end up feeling that they have eitherno say or do not have any valuableinput. People feel happier and performbetter when they feel that they aremaking contributions to the future ofthe group. Since he was almostsnubbed in front of many others, heand quiet probably many others whowere passively watching him wouldalso be feeling the same way.

Researchers have also found thatautocratic leadership often results in alack of creative solutions to problems, which can ultimately hurtthe group from performing. Come tothink of it, if I know that my (valuable)contributions are going to be snubbedupon, next time I will be looking theother way as ultimately only the ideasgenerated brilliantly by the CMD aregoing to be 'most practical','strategically right' and eventually

implemented, irrespective of the consequences - like in the currentcase.

Having said that, let's examine ifautocratic leadership is always ineffective?

If the situation is of any emergency or where it's a small grouphaving no leadership or in situations that are particularly stressful, such as during military conflicts - group members may preferan autocratic style. This helps the members to focus on performing theirspecific tasks without worrying aboutmaking complex decisions.

However, in the given case, this wasnot at all the desired style ofleadership.

Business Acumen of CMD

The CMD, from the data provided inthe case, appears to be having an average business acumen.

Business acumen demands intensemental activity. When the DirectorFinance presented the harsh facts tohim, he should have done his calcula-tion and understood if the companyshould be taking such an aggressiverisk or no. A debt of 20000 Cr and anadditional requirement of 70000 Cr is aherculean order by any standards.Business requirements warranted thatthis investment, even if someonemakes it, taking huge risks - needed togenerate revenues at the earliest. Adelay of 5 long years that resulted in

project cost rising three times was suicidal by most moderate terms.

Another crucial decision seems tobe selecting NIXON steel as the serviceprovider, which did not have any experience to handle such mega projects. Their selection appears to bea wrong decision, since there is no dataprovided on the selection process ofthis key service provider - we can onlyconcur that the CMD should haveensured that the selection process isimpartial.

Given that MAIL performed verywell during the preceding three years,the top management lead by CMD

should have done adetailed analysis tounderstand, if the company did somethingbrilliant to earn 5000crores or were the market conditions primarily responsiblefor such stupendous performance - given thecyclic nature of theindustry. After doingthis basic analysis, ajoint decision eitherways could have been alife saver for MAIL.

Ways to come out ofsituation

MAIL is in a precarious situation.They are in a financialmess, to say the least.Based on the data available in the case - thecompany has limited choices:

1) To reduce debts, itshould look for suchassets that can be

encashed. May be there is some extraland that can be sold or redundantP&M (KISCO may have certain P&Mthat has been replaced by the greenfield expansion)

2) Another option could be to sell offthe acquired KISCO - given that thecurrent market conditions are not veryconducive, MAIL cannot expect a greatdeal but there may be buyers in themarket, who may be scouting for a dealduring the slump market conditions.

3) The IR scenario is again on theverge of a breakdown as the union haswaited for 2 years for a wage revision.So the union needs to be formallyinformed about the financial conditionof the company. They should be madean offer to help the managementreduce the additional employees byway of a VRS and then be eligible for adiscussion on wage increase.BM