Sunday, March 15, 2015

Appraisal System:21st Centuries Exploitation System!!!

In post 1991 period of the technology revolution and the raise of new liberal policies gave way to many new business management concepts. Jack Welch,a former anti employee CEO of GE was the one formalized the most exploitative concept of 21th century in appraisal system. In 1980's Welch introduced a concept to exploit employees in new way know as 'Stack Ranking' or 'Forced Ranking' or 'rank or yank' or 'Forced distribution' or 'Bell Curve' or 'Vitality Curve' etc. It's new concept that introduced to increase competitive environment, Increase production, divide workers unity, In equal distribution of wages, enable firing with poor performer, reduced overall wage rates, Changed work culture and wipe social security.
  The system is implemented by all major corporate across the globe. In India, all new age corporate follow this appraisal concept. During 20th century, across globe there is a problem for corporate with continues raise in fixed hike for all employees and process of unionization. So some mechanism required to minimize this effect of workers unity. The system also creates a isolated work culture and way of life. Appraisal system is not only depends on performance of individual but various others hidden baseless parameters were consider by the managers in appraisal process. Core understanding of this system can be simple stated as "Survival Of the Fittest".

The problem in this system as three perspective as technical flaws,cultural flaws and Indian flaws. This practice based on 80-20 rule and pareto distribution curve.Where some people granted high rating in appraisal process under a category high performance on other hand equal number of people given low rating. The distribution between the two extreme may not be equal like a exact bell curve but something like a power law curve. In between this both extreme variance lies a bulk number of average performers. The distribution of compensation is widely varied across the curve. One more outcome of the process is the sudden promotion's for high performers and pushing out low performers of the company. It's one way were this corporate companies drive out high salaried low perform aged employees and  pull in low salaried young employees. This gives corporate additional chances of pumping in fresh blood of employees into high work time exploitative environment to increase productivity. This complete appraisal process hangs in the decision of the manager. so this process can never be a standard to judge a employees performance since finally its going to be each employees manger going to give force rate. A team of high performance employees can never rate all its employee as high so the manager need to be distribute the rating. This system allows a employee of 10 years experience to be compared with fresher for appraisal process, In noway this way of comparison can give justified rating for employees. It naturally tempt employee with feeling of unworthy decision taken on them will quiet the company, most the companies want this to happen so they can keep getting fresh hands in productivity and destroys the concept of permanent jobs. They tempt for more casual and contract employees.  

   Among employees this system creates negative thought process on fellow employees. The system makes team work a act of dynamics but individuality makes heavy production. The competitive environment developed by this system make every employee too fight individual proving them for salary hike rather than collective bargaining of union for common hike in 20th century. So employees started to involve in isolated act of production This process created culture started to reflect in social life of the employees. They started to think about there social problem in isolated environment and solve it individual  rather than united approach of solving a social problem. It creates a attitude of superior for people with high performance and a stressful depression state for people in low performance cadre. This system also stagnant employees mind from developing them self rather then allow to experience new ideas.

  In one way technically the system is wrong and other way system in cultural flaw. In India the system is further biased by some geographical identities. As I wrote previously the complete system hangs in the hands of employees manager decision, mangers are like slave lords in India. Indian Managers are mostly biased in decision making during appraisal process. The parameter is not alone performance based in India it dependent on Manager's tit for tat , Manager's favoritism, caste, region, language, religion ,gender etc. Indian managers are mostly upper caste Hindu male dominated people seated to rate a diverse spectrum of employees. Most of the people getting this good rating/promotion are from upper caste is that mean other caste people not talented. It's biased nature to pull up people of there orgin strongly exists in work culture. Managers use it as assault weapon to employees in wrong terms with him/her to rate low. Women's have additional problem from there male bosses as in the form harassment. They were not aware its a harassment but they need to keep quite. Women employee were saturated after certain level of hierarchy. Is it happen naturally? No, our common Indian male attitude about women saturating them from progress.  A women's are not qualified to do more than this work is deep imprinted in most of the male managers. This system completely wiped the rebel sprite of employees to question the managers of wrong doings.

  Jack welch introduced this system into GE corporation the productivity increased to pinnacle. During his tenure of CEO, company value rose by 4000% but other side employees were regularly thrown out with poor performer brand. One sample of GE is enough to show case how much this appraisal system driven company value. Actually this growth not reflected in big deal in employee salary and job security of the employees. The system can make employee to feel good but overall this appraisal system is a new way of exploitation of employees labor. It's the reason every time a employees union formed in a corporate office first demand would be wipe out appraisal system. So the solution for it may be common fixed hike for all employees based on there seniority. Open promotion policy based on seniority and single window system. To achieve this Employee union is must for our collective bargaining.  Let keep marching towards a society without exploitation by keep uprooting system like this on the path. 

Sunday, December 14, 2014

IT Employees:Basic Understanding Of Labour Law!

   IT Sector around 8-9% contribution to Indian GDP and holding around 2 million young minds,a stabilizing industry. In Stabilizing phase,Corporate always take decision to lay off employees and implement anti-labour policy for profit maximization. During 2008 recession, more than thousand technocrats committed suicide according to national crime record. 1 in every 20 IT professionals contemplates suicide. Over 30% of IT Professions addicted to Narcotic drugs. Too avoid such situation in lay off phase, Employee should know basic knowledge in protective labour laws.It's always better to fight back for your right's  rather than losing life.

Is Service Bond Valid?

   According to Indian Law, Service Bond is illegal. Bonded labour not only illegal but punishable by Indian law. Indian court even ruled out orders that service bond illegal and against fundamental rights. No Company can threaten a employee with service bond for ransom or work. A service bond  can hold legal only under the condition if employer trainees a employee in grooving and enhancement. Grooving in the sense not training a employee in java,c,c++,testing etc.Even under such condition contract becomes invalid if contract is one sided. The basic law hold against service bond or bonded labour:

Article 23-Indian Constitution-Fundamental Rights-Right against exploitation-Which prohibits all form of forced labour,human traffic and child labour.
Section 27,Indian Contract Act,1872-Agreement in restraint of trade void. - Every agreement
by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.
Section 383-389 of Indian Penal Code-(Deal with Extortion)-  if any person or institute holds back any document or any use any legal document or threatens any legal suits or actions and thus forces a person to perform any act against his wishes or which is illegal or wrong as per the statute of Law of the land.The minimum punishment under this act is 2 two years.

Is Trade Union Illegal?

   According to Indian Law,Trade Union activity legal. All Corporate company established in India under Indian Companies Act,2013(Previously Indian Company Act,1956). Corporate were never exempted from any labour law of the land. Except in SEZ, all other locations employee of organization can organize as a union. No HR or Project head can stop a employee from organizing as a union. Company can't act against trade union formation its criminal procedure for fundamental right's violation.The basic law for trade union formation,regulation and monitoring is:

The Trade Union Act,1926-It enables registration of a trade union of a organization with government. The Registered trade union with more than 30% of employee support act as a recognized official trade union of the organization. Trade Union is a collective force of employee to voice for salary bargaining, lay off, Working hours,employee concern etc.Registered trade union can call for employees strike.
Article 19(1)(C)-Indian Constitution- Fundamental Right to form association or union.

Is Sexual Harassment Legal in Corporate Culture?

  The most cornered section in IT sector would be lady associates working among majority male associates. Sexual Harassment may look like culture in corporate but criminal offence on Indian law. The problem in Sexual Harassment cases many female associates never know they were harassed. The law protect women at workplace is:

Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013-It provides protection for the women employees at work place. A un-welcome physical conduct,demand sexual favor,showing pornography, sexual verbal or non verbal behavior & sexually colored remarks would be considered as sexual harassment. A employer with more than 10 women employee should have a internal compliant committee. Members of the committee should be a senior women employee in same organization(Presiding officer), two women right's employee in organization,one ngo/association for women's right.Half the committee should be filled with women.
Sexual Harassment cases should be addressed by this committee not by HR's. The Internal Compliant committee maintain secrecy of compliant details and order for IPC case against the harasser. The Employer violating the law and no internal compliant committee would be fined.

Note:-Every female associate have right to know your internal compliant committee in your organization.

Is Lay Off(Hire-Fire Concept) Legal in India?

  Indian corporate companies comes under Indian companies act,2013. So layoff process can't take place without government approval. There is a loop hole in layoff process which most of corporate use to skip government monitoring or approval. Most companies under layoff process ask employee to resign rather termination from organization. Only if company terminates a huge employee bunch would be considered as a layoff process by law. The law protects employee from corporate lay off process is:

Industrial Disputes Act, 1947- A company with more than 300 employees need to get prior approval from government for layoff process or retrenchment.50% of the basic and dearness allowance should be paid for period of layoff. A registered trade union can act on the part of employee negotiation with employer.

Note:-Never resign your job forced by a employer,ask them to terminate you. It gives chance for legal proceeding.

Day To Day Legal Law: 

  The various act governs your day to day activity in organization based on Indian labour laws. The labour laws are:

The Factories Act,1948/Shops And Establishment Act,1953- Its act for safety,health and welfare of the workers.

Working Hour- Employee cant work more than 9 hours a day or 48 hours a week. 30 minutes interval after 5 hours of work. Inclusive of interval/breaks work time can't go excess of 10.5 hours(Including overtime).
Overtime Wages-Employee works more than 9 hours/day or 48 hours/week then double wages need to be paid.
Leave- Every 20 calender days a day leave must be granted.

Maternity Benefit Act,1961- It enable payed leave for women during pregnancy,delivery and post-child birth.

Other Acts:

The Minimum Wages Act, 1948,The Payment of Gratuity Act, 1972 ,The Payment of Wages Act, 1936  

Process to Fight Back:

        The violation of any labour right's employee have all right's to move out of companies administrative/management for external labour organization. The various forum to complaint about any labour law violations are:

  • Labour Commissioner
  • Labour Court
  • Labour Tribunal

   Reading this article is not matter but voice out against labour violation.HR are not your ultimate boss and your company policy not law of land. All Court will dismiss your company policy placed in court.

Source: Labour Ministry, ILO,National Crime Record,Nasscom,Indian Constitution, Indian Penal Code. 
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