Emerging challenges in Human Resource Management

If we want to understand the emerging challenges in the human resources management, it is perhaps necessary to develop a perspective of the new situation which organizations might have to face in future. Some of these changes are clearly discernible, while others show clear evidence of their probable occurrence.

Approaches to Human Resources Management are not static, in the sense that they are made one time and hold good forever, on the other hand, they are dynamic. They undergo systematic changes to meet the requirements that crop up in the future. The techniques that worked well in the past may not work well in the present and those which are operationally effective currently may need realignment to cope with future needs.

Anticipating possible changes and new requirements of the future and making prior preparations are always better strategy than waiting for the changes to catch us unaware, or remaining in complacency or involving in what is termed as ‘fire fighting’. Thus in the area of human resources management the practitioners should have futuristic-orientation as in the case of other functional areas, such as technology forecast, investment decisions, market analysis etc.

The fact that future may pose totally new problems due to different kind of changes and pressures in the business environment and that the current strategies may prove inadequate, bring us to the awareness of so called ‘Emerging challenges in Human Resource Management’.

Emerging challenges assume the form of the need to deal with emerging problems in the area of Personal Management and Industrial Relations in the coming decade. In order to understand the emerging challenges in the management of Human Resources, it is perhaps necessary to survey, understand and predict changes in the following sub-environments of the total environment within which Business and Industry operate, adopting ‘Systems Approach’

Technological Developments (Technological Revolution)
This includes growth in size and complexities of organizations and automation, including computerization. It is necessary to examine (a) how technological developments affects the design of jobs in terms of changing pattern of educational skill requirements, organizational structure performance control, etc, and the implication of these on techniques like personnel recruitment, selection, job analysis, job evaluation, developing compensation plans, developing appraisal systems and task structuring and (b) the strategies in the introduction and management of technological changes to secure the vital employee acceptance of the programme and productivity of the enterprise.

Changes in the Economic Environment

This includes examination of the impact of a number of factors on production. Some of the key factors are the scarcity of raw materials and other inputs including power and electricity, encouragement of the culture of consumerism, increasing consumer awareness and demand for quality products, continuing upward trend in the inflationary pressures with decrease in the purchasing power of rupee and its spiraling effects in the ever increasing aspirations of workers for higher wages and other material benefits and mounting costs on the employee welfare and other benefits.

In an inflationary economy, the resources tend to become scarce and the costs of machine, materials and labour multiply. These push up the capital and running costs.

The import of foreign technology experiences heavy constrains due to adverse balance of payments and this generates further pressure in developing indigenous technology.

The escalation in the cost of production per unit which is expected to continue at much faster rate in the coming decade than it is today may keep the managers under tremendous pressure to utilize the human resources in judicious combination with other physical resources, particularly when the human factor is singularly potent in making the other inputs work. It is known that at the end of all the technological innovations, the factors that make or mar productivity are the human factors and hence in any productivity programme it assumes greater importance.

Changes in the Legal Environment

It includes Industrial Relations and Employee Welfare Polices of our Government, which are enforced through a plethora of legislative measures.

Changes in the Socio-Cultural expectations of the work force

These include changes in the compositions of work force in terms of their education, social background, roots in urban setting and exposure to larger democratic culture of our country, all of which bring about changes in their expectations, attitudes and value-orientations which have bearing on the approaches to Human Resources Management.

Technological Revolution :

Strong winds of changing technology in several fields are clearly noticeable with the advent of the so called ‘Electronic Revolution’. The electronic wonder-the ‘microchip’ is indeed creating quiet but sweeping changes. Computers have become smaller and smaller. The personnel computers have started invading executive desks Micro Processor-based controls are increasingly being introduced in industry in regulating processes for ensuing quality and productivity.

Numerically controlled precision machine tools are fast replacing the traditional type of human operations and the conventional machine tools. Computers are introduced in offices and industrial organizations for several purposes, like production planning, control, marketing, financial analysis and so on. Robots are entering industry in a big way due to Japanese lead. The use of communication satellites have opened up a new international communication order. One of the latest developments in communication technology which is now available to our executives is ‘Tele Conference’. With the help of this facility executives in different organizations from far away can convene conference and exchange ideas without having to move from their personal executive environs and without wasting time and energy in jet travel. Office systems, like word processors are fast replacing the conventional equipments and styles of work. This view is also, shared by another Management Expert Thomas W.Gill. He says machines will soon take over all the routine clerical work, acting as clerical steam shovels…, keeping records will be done once. Personnel information will be recorded and stored in machines and print-outs from the machines will satisfy all the reporting needs.
What are the impact of these changes on the organization, its structure and jobs and in turn the patern of skill requirements, style of management and new conduct and discipline on the part of employees? Some of tose are;

Upgrading of the Skills at Lower Levels :

The technology brings in its wake the need for correspondingly higher human skills to handle them. For instance, there is need for higher skills and intelligence to operate a numerically controlled machine than is required to man a conventional one.

The need for increasing degree of mental application :

Developing a sense of urgency and sense of reciprocal understanding or roles and the need for increased team spirit and technical-orientation becomes a necessity.

Referring to the consequences of technological changes in the form of computerization ‘Peter Ducker comments, “Old fears that automation would result in large scale unemployment have universally been disproved. Few companies that installed computer to reduce employment of clerks have realized their false expectations. Most computer users have now found that they need more and more expensive clerks, though they call them operator or programmers. All automation might do is to shift employment from fairly low paid manual jobs to much paid or professional work”. With increase in technological complexities due to anticipated technological revolution, the number of specialized jobs or staff positions may increase as opposed to line positions. The traditional pyramidal type of organization design (fraternal or centralized type) may increase as flatten at its base. In cases of R&D organizations, it may even turn into a matrix structure. In the new structure, there will be more positions, at the junior and middle level requiring specialist skills than positions, requiring standardized routine work. Again, more self responsibility, originality, innovativeness, better appreciation of time, more personal dynamism, better imagination, zest for excellence etc., will be on demand. Because of increasing number of the so-called (to use Peter Ducker’s terminology)’ ‘Knowledge workers’ and the need to operate the systems at high speed, accuracy and in unison, coordinative or collaborative efforts could also assume additional importance.

At every level, more time and energy will have to be devoted for communication with people at next lower level, involving them, showing a sense of mutual trust, confidence and respect, providing challenge and partnership and developing perceptions of common goals of organization.

Are the current personnel systems and practices adequate to meet some of the emerging demands in the management of Human Resources, as a result of the technological changes? What are the emerging challenges?

It is possible to conceive some of the new challenges. These are:
1. Identifying more precisely, than is done now, the duties, responsibilities, skills, aptitudes and work ethics that make up new jobs, by applying scientific job analysis techniques.2

Currently, jobs are not analyzed scientifically and job descriptions are not systematically developed. Many management scholars2 who studied Indian organizations have come to this conclusion. Thus, there is lot of ambiguity and conflict which are personally frustrating to employees and also organizationally unhealthy. In the new technological environment, the job incumbents will look for much more job clarity than is made available now.

2. The need to rationalize selection and recruitment procedures and employee training.
The organization will be under greater pressure to locate people with required aptitudes and skills. This is so because in a complex technology, human error is more costly than in the case of traditional technological set up. The axiom of ‘fixing the round peg in the round hole rather than ‘fixing the square peg in the round hole’ should assume added significance. Once the persons are selected carefully they also should be placed properly and should be given continuing training to update their knowledge and skills and to save them from obsolescence. Thus, proper identification of training needs and selection and development of training methodologies assume added importance. Gaps in training will immediately reflect in production, as knowledge and skills are more critical factors underlying performance.

3. The need to establish a more clear-cut link between employee performance and administration of rewards by instituting objective performance appraisal system :
The knowledge workers would expect a clearly perceivable link between their efforts (performance) and administration of rewards (salary and other monetary and non-monetary ones). In other words, they look for recognition of their efforts, in addition to clarity of goals and performance standards and operational freedom. This can be achieved through the use of scientifically developed system of Performance Appraisal. Currently, the Practice of Appraisal used in many Indian organizations require improvement. In many organizations, the discredited system of C.R. (Confidential Records) is still in vogue. As the information from systematic appraisal is not use in salary administration, the salary differentials do not generally reflect differentials in responsibilities, skills etc., with the result that salary administration, which is one of the potent tools in the hands of management for motivating employees, does not serve its motivating function. It will be a new challenge for the personnel people to develop objective criteria of performance, particularly in the case of supervisory and executive jobs and, devise appropriate methodology for assessment, and orient all line Managers to appraise the performance of their subordinates in such a way that they are willing to improve their performance.3

4. Assisting the organization to introduce new technological changes:
To choose a new technology may be much easier than its introduction in an organization, because of possible employee-resistance. We know the cases of many industrial and business organizations in our country which met stiff opposition from the employees, when they tried to introduce computers. The resistance, top management can expect not only from the side of workers and their trade unions, but also from supervisors and executives.

The personnel functionary might have to shoulder this new responsibility of assisting the organizations in the introduction of technological changes by helping the organization in instituting a decentralized and participative set up. In such a set up, the employees should be involved in planning and introduction of technological changes, which ensures their commitment. An all India study of Personnel functions by Joseph4 reveals that legal and administrative duties of labour administration constitute larger part of personnel functions in Indian organizations today. Of course, the administrative and legal duties may demand considerable part of the time and efforts of Personnel functionaries. In addition, the future will make demand on them for exercising their professional skills in other areas most relevant from the point of Human Resource utilization. They will have to help different Management levels o shift their value- orientations from “Authoritarianism” and “Bureaucracy”, which are rather deep rooted in our Industrial culture to “Equalitarianism” and train middle and lower level employees to take full advantage of permissiveness with achievement – orientation, efficiency consciousness and accountability. They will have to plan new strategies for keeping employee ‘morale’ and ‘motivation’ relatively high, continuously monitor their levels and do systematic human asset accounting. In future, share holders and even the enlightened general public might expect statements from the Top Managements what they did to appreciate the value of human capital not only in terms of upgrading technical skills but also in terms of fostering supportive and motivational climate, as a part of their Annual Budget Statements.

With the complexities in technology, the human will and potential assume more importance. Realization of this spirit is found in the so called ‘Japanese Style” of Management. Organizations rely heavily on the potentialities of their employees and give them the highest place in production. They do not consider them as just factors in production. They provide them with an environment conducive for production. They provide them with an environment conducive for productivity and enriching quality of work experience. Many of their personnel practices such as ‘Team Approach to work’, ‘Informal Task-related Interaction’, ‘Emphasis on Productivity goals’, ‘organisation’s extended interest in the family of employees’ are and reflections of psychological and sociological principles of effective group functioning .In others words Japanese have developed a social technology matching with scientific technology.

Thus, Personnel functions are going to be all pervasive and touch upon all levels of human interaction such as at the shop floor level, union management level and within and between groups. Wherever people work together for a common goal, the personnel people will have to play a role in cementing human relationships. The personnel people in discharging their functions may have to do a ‘tight rope walking’, because they have to convince their top bosses about the need for changeover of the organizational culture from pyramidal to one of participation. This in the short run appear to erode their privilege to manage, and hence they may not be hostile to the idea. Sometimes, the Personnel Managers may have to incur their wrath unless the situations are handled wisely.

Again, democratizing the work culture is not a ‘panacea’ for all organizational evils. De-centralisation of the internal structure in response to external pressure for democratization may not be economically productive. It can even be counter productive. Thus, along with democratization, there is need to develop a sense of accountability, and productivity and quality consciousness by introducing appropriate practices such as goal setting, work planning, review, etc., These can often pose additional challenges.

Changes in the Economic and Legal Environments:

The cost of production goes up due to increase in the cost of inputs and wage bills, both of which are due to inflationary pressures in the economy. The expenditure on wages and other welfare benefits have been going up over the last several years, due to new concessions granted by the Government to the workmen and also due to increase in the bargaining power of the unions supported by labour-oriented polices of Government.

Jagadeesh, former N.I.P.M. President in his address at Mysore pointed out that “unions are getting more and more benefits like employment security, employment to their family members, wage increases, free lunch, free shoes, free polish, more and more number of holidays etc. with no proportionate return in the form of increased productivity.” He joked “Unions are always worried as to what to ask?” It is true. To check this money culture, the supervisors can perhaps involve the shop floor workers for better understanding and handling of the situations, in the sense that many of the external forces working in the minds of the workers such as shortages, inflation, etc., will have to be emphasized so that the workers start appreciating the realities and make healthy compromise. Again, the employees have absolute security of employment. The Management cannot take the workers into task easily when they neglect their work, Mr. Jagadesh in this address referred to above, quoted the case of an employee in one of the leading South Indian Banks in Calcutta who stood stark naked before his officers when he was interrogated for his misconduct. Assaulting superior officers by their subordinate staff for initiating action against gross indiscipline is not uncommon. Even the disciplinary procedures at the officer’s level are so legally involved that these officers enjoy absolute security of their positions. The senior author knows a situation in which a middle level executive gheraoed his immediate superior. The Managing Director had to intervene as a peacemaker and well wisher of both parties and patch up the differences. It may be true that it is easier for a manager to get rid of ‘his wife’ than to get of ‘his problem employee’.
The above trends may continue in future, perhaps with added momentum. These changes may have the following implications :

The Management cannot easily take punitive disciplinary action against workers for misconduct or to get from them a fair day’s work.

Because of mounting costs of production, the Managers will be under pressure to realize employee productivity.

The Management cannot expect much support from the Government either in conciliation or in arbitration to settle the disputes in their favour, because of its pro-labour oriented polices. These conditions will force the Management to re-orient itself in regard to industrial relations. They may have to avoid confrontational and legalistic approach to Industrial relations, accept and practice an approach characterized by ethics of collaboration, openness and trust between the two parties. Collective bargaining would no longer be looked upon as an arena to test the strength of the parties. Again, Industrial relations and personnel functions should not be narrowed down to the process of distributing monitory concessions across the bargaining table via union leaders. Thus, it will be one of future challenges for the personnel people to enable the organization to take a more comprehensive view (the so called ‘process view’) of Industrial Relations. Industrial Relations setting will have to be considered as opportunity no longer to be looked upon as an arena for testing the bargaining strength of the two parites. It should be viewed as an occasion for resolving conflicts and developing a sense of collaboration, mutual trust and reciprocity between the two parties. The relationships should be developed at every focal point of interaction such as shop floor participation, Participatory Forums like ‘Work Committees’, and J.M.Cs, Grievance Machinery’, collective bargaining, Disciplinary Procedures, etc. When the Management cannot relay on the external agencies for support in conflict resolution, they have to depend upon their own internal resources to resolve the conflicts constructively. The managements will be under greater pressure to run joint councils including collective bargaining effectively and solve the disputes internally without referring to a third party and also to use those forums for developing a sense of employee commitment to organizational goals. If the mechanism of collective bargaining fails, government’s intervention either in the form of conciliation or arbitration will assume greater importance, detrimental to the interests of the Management. Developing new knowledge and skills regarding the group processes necessary to run joint forums and training non-personnel people and line executives in those skills are going to be new challenges in future. There is enough documentary evidence to show that the past history of the functioning of those joint forums has been far from satisfactory.

Changes in Socio-Cultural Environment:

Since independence, there has been gradual but steady changes in the Socio-cultural background of the work force. These changes have affected people both at operative and executive levels. The gap between the Socio-cultural expectations of employees and organizational opportunities for fulfillment has resulted in mounting frustrations among them. A manifestation of this frustration at the junior and middle Management levels, which we find today, is their tendency to organize for collective action. Recent years have been witnessing the growth and proliferation of ‘Unions’ among Managers. Due to certain legal constraints and also for want of legal protection under Industrial Relations legislation, these organizations exist under the cover as Guilds, Associations, Federations etc., otherwise as ‘Karnik’ points out ‘they are new unions’. These Associations have assumed the feature of conventional unions such as their bargaining character, allegiance to other sub-groups than to their total organization, seeking environmental and political support, confronting attitudes towards their top managements, lack of cooperation among organizational members, lack of commitment to work and so on. The contesting behaviour between Top Management and the Managerial Associations have precipitated several problems in many public undertakings in India. In certain undertakings the relationships between Top Management and Associations have assumed the form of open conflict. The Top Managements in public undertakings are now faced with the problem of evolving a policy in dealing with Managerial Associations. Examination of certain current practices reveal that ‘adhocism’ prevails in dealing with Managerial Associations.6

The discontent among the employees is expressed in their work behaviour characterized by apathy, lack of result-orientation, lack of responsibility, sense of alienation, rigidity, excessive rule-orientation, resistance to change and unreasonable demands.

One could expect that the tendency on the part of higher level staff for collective action will gain momentum in times to come. It will be a new challenge on the part of the management to deal with this problem. The personnel functionaries may have to share larger responsibility in the management of managerial unions as also to revitalize the internal organizational environment in such a way that it provides a kind of satisfaction the executives are looking for and are currently lacking.

In conclusions, as one could see from the previous discussions, the new challenges in the area of personnel functions will largely be of two types: (1) Expansion of Role Boundaries of Personnel Functions and (2) Enriched professionalism.

Expansion of Role Boundaries

Pre-occupation with the administrative and legalistic duties of Personnel function will progressively give way to more in-depth professional work, intervention and application in such areas as scientific selection, placement, training, job analysis and work design, institutionalization of participatory forums and compensation plans with special reference to linking rewards to productivity. Other productivity oriented techniques in demand would be those like M.B.O., Zero defect, Quality circles, introduction of Scientific Performance Appraisal System, revitalization of internal structure and processes, new strategies of Conflict Resolution and other organizational development efforts.

In other words, Personnel Management will have a role in influencing the total organizational behaviour, taking into consideration the needs of both organization and human system.

Enriched Professionalism:

In order to meet the emerging challenges, the personnel People have to equip themselves better with skills in dealing with the human side of the enterprise. Instead of taking decisions based on manifest issues, they should be able to delve into the process level. Once they are equipped with the above skills and orientation, they will be able to develop a professional identity of their own and they would be able to go in for management applications based on Behavioural Science and Technology, which requires greater professional preparedness and attitudes conducive for continuous acquisition of new knowledge and techniques available in the field.

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References
1. Peter Drucker, Management in Turbulent Times – His New Guide for Managers Today. Pan Business Management Books – 1982.
2. See A.Sreekumar Menon, Job Analysis and its application, Management in Government, Vol IV No.2, July-Sept.1972; Mc Cormick, E.J., Jeanneret, R .P. and Macham, R.C.Position Analysis Questionnaire, Purdue Research Foundation, U.S.A.1969; A. Sreekumar Menon, “Organisational Climate and work Motivation” in Motivation and Organisational Effectiveness, ed.S.K.Roy and A.Sreekumar Menon, New Delhi, Shri Ram Centre for Industrial Relations, 1973, p.173-203.; Kahn, Katz and Rosenthal, Study of Organisational Ambiguity and Conflict.; Mayer, H.H.Making supervision Humane and productive in Meltzer, H.Nord, W.dD.(Eds) Making organizations Humane and productive, John Wiley, 1981,p.121; Roy, S.K., Bhargav.K, Sreekumar Menon A, Communication and Industrial Relations, unpublished consultancy Report, New Delhi, Shri Ram Centre for Industrial Relations: A.Sreekumar Menon. Leadership and Effective Performance. New Delhi, Shri Centre for Industrial Relations, 1975.
3. To get more comprehensive view of how performance appraisal affects human resource utilization, see the article Performance
Appraisal by A.Sree Kumar Menon published in the Souvenir of the Mysore Chapter of N.I.P.M.1982.
4. K.K.Joseph. Personnel Management in Indian-A survey.
5. Karnik, V.B.-Unions of salaried and professional employees”, in “Indian Labour Problems and prospects. New Delhi, March, 1974.
6. For more detailed discussions of ‘Managerial Unions’, see A.Sreekumar Menon Managerial Unions in Indian Business and Industry, and its Management, Lok Udyog, Mar.1975. A.Sreekumar Menon. Managerial Unionism in Indian Industry, A case In Suri G.K. & Bhargav, K. Case problems in Industrial Relations, New Delhi, Shri Ram Centre for Industrial Relations, 1975; Sharu S. Ranganekar, Middle management in search of an identity-paper published in the proceedings of the conference-cum-seminar of Officers Organisation. Bombay, June, 1973. Dayal Ishwar and Sharma, Baldev. Strike of supervisory staff in State Bank of India. Progressive corporation, 1971. Roy, S.K. and Sreekumar Menon, A. (eds) Motivation and Organisational Effectiveness, New Delhi, Shri Ram Centre for Industrial Relations. 1974.
7. For a detailed discussion of O.D. Techniques see: Wendell L.French and Cecil H; Bell J.R. organizational Development – Behavioral science intervensions for organization improvement. Prentice Hall, 1978,; (2) Dayal, Ishwar, Bennis Warren and De, Nitish. Readings in Group Development.
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Research Studies in Information Technology Sector

Developed By Dr.A.Sreekumar Menon

Karnataka, especially Bangalore has become a favourit destination for IT and IT -enabled companies BPOs and Call Centers. The state has attracted FDI investments from all over the world. The current trend in the development of IT and IT-related industries is poised to witness unprecedented growth in the coming years, because of vast pool of trained manpower and people who have good command over English language. In spite of these advantages if the industry were to survive, take roots and grow, it is necessary to acquire data and information pertaining to several expects of IT industry and applying it in managing Human Resources technical processes and environmental relations such as the relation with the Government. IT industry in Karnataka is of very recent origin and hence no attempt has been made to conduct systematic and large scale studies on problems pertaining to this industry. Hence it is perhaps the need of the hour to address the problems, plan scientific studies and generate valid and usable data and information.

In this context, I would like to propos the following studies, all of which fall in field of Applied Behavior Sciences in Human Resources Management, Organizational Studies and Macro Sectoral Studies. Given below are the topics for Research Studies and proposals in summarized version. Those IT Companies interested to sponsor the studies can contact the above author for working out detailed proposal and subsequent arrangements for sponsorship.

1. A study of Diffusion of the so called “Best Practices of M.N.C’s (Foreign Subsidiaries) and Domestic Firms in India – Bangalore Area Study.
2. A Study of Changing Market Scenario in Urban Setting in Bangalore.
3. Study of Job Turnover (job attrition) among IT workers in Bangalore and effective strategies to retain them.
4. Study of Organizatio¬nal climate and Management Practices for creating work environment conducive for creativity, innovativeness, productivity, quality and customer-satisfaction in regard to products and services in software industry in Bangalore.
5. Out-sourcing IT work to India. A study of economic, social and psychological impacts on IT workers and their families- A study of their adjustment problems and formulation of effective solutions.
6. A study of IT industries-its corporate image-An area study in Bangalore.
7. Designing Performance Assessment/Appraisal/Evaluation/Merit Rating/Performance Review system and technique of performance feedback focused on development of competence and work motivation and team spirit for employees in IT Industry in Bangalore.
8. A study of Financial and Non-Financial Incentives provided to IT work force in Bangalore and their effectiveness interms of their satisfaction with their jobs, personal productivity and innovativeness.
9. Case studies of high performing IT companies in Bangalore.
10. An in-depth study of effectiveness of communication skills of IT staff working in Bangalore
11. Study of Customer Preferences for Services offered by Foreign Subsidiaries of Financial Services Firms in Indian - A study in Bangalore.
    
    
    1. A Study of Diffusion of the so called ‘Best Practices – Technological, Production, Marketing, Financial, H.R.M and L.R / I.R of M.N.C’s Foreign Subsidiaries and Domestic Firms in India – Bangalore Area Study.
    
    Particularly after the integration of Indian Economy with Global economy in 1991 by Govt. of India, M.N.C’s interest in India as a preferred location for F.D.I investment has grown unprecedentedly. This increase in F.D.I is poised to grow further in the years ahead. India’s recent emergence as a leader in Soft ware industry has given added boost to this development. In Bangalore itself now around 5000 software companies big and small got established during a short span. Thus Outsourcing and Transnational collaboration are going to dominate the field of industry during 21st century and perhaps beyond.
    
    Debates on the effects of M.N.C’s In India often tends to be highly emotional and far from being considering it as unmixed blessing. On one hand it is claimed that M.N.C’s have contributed to socio-economic development of the country due to infusion of their superior knowledge and so called Best Practices – Technological, Institutional, Organizational (H.R.M and L.R/I.R) across their Subsidiaries and Domestic Firms emulating them. There is equally strong argument to show that M.N.C’s do more harm than good. M.N.C’s are seen as superior employers or as behemoths taking advantage of low wages and cheap labor supply, suppress the work force in Developing countries which allows M.N.C’s to bargain down home country employment standards and drive up their profit rates. A view contrary to this is expressed by some people who support M.N.C’s. They see M.N.C’s as more progressive employers than Domestic firms, who provide quality work floor and physical workplace arrangements, contractual agreements, Training Programmes and more attractive pay packets and liberal employee benefits and welfare programmes. Thus the opinions are equivocal. This main reason for this controversy is the non-availability of authentic information collected systematically through Research studies. There are very limited number of studies on the subject (see Kuruvilla, S; Frenkel, S and Peetz, D. in Cooke,W.N Multinational Companies and Global Human Resources Strategies 2003, p.166-193) What we find is that the views on the role of M.N.C’s are largely opinionated and impressionistic rather than factual. Hence there is need for more studies like this on the subject.
    
    There is also another need for doing this study. M.N.C.’s with their profit –orientation, which is justified, will look for transferring their best practices to their Foreign Subsidiaries. So it is in their interest to find out whether diffusion of their best practices has taken or is taking place. It is also possible to have some best practices which are locally evolved in the Traditional Indian Setting, which work best. , knowledge of which will be added advantage to M.N.C.’s Thus a study of this kind assumes added importance
    
    The Objectives
    
    1. To find out whether Diffusion of Best Practices of M.N.C’s has taken place across their Subsidiaries and also Domestic Firms has taken/is taking place.
    1. If so, what are those practices? (An In depth analysis and descriptive presentation of those Practices)
    2. What are the predominant conditions that have facilitated institutionalization of Best Practices?
    3. What are the conditions which are inhibiting transplantation of Practices and What are the strategies used to overcome resistance?
    5. Are there locally bred Best Practices? If so what are those, and their nature? and what are the conditions that nurture their growth and development?
    
    Research Methodology
    Both Survey Research and Case Study Methodologies are to be employed.
    
    In the first phase, a representative Sample of MNC’s Subsidiaries and Domestic Companies will be drawn and from each, certain number of Respondents from two hierarchical levels-managerial and worker will be selected to elicit response to the Questionnaire. A Licket type of Questionnaire will be prepared, using which data and information on the above parameters will be collected by mailing the Questionnaires. Secondary data in the form of Documents and statistics available in the Companies will be also being collected. The survey data will be analyzed quantitatively by using appropriate Statistical Techniques vis-a-vis computerization. The findings are expected to yield answers to the questions subsumed under objectives.
    
    In the second stage, two Firms one Foreign Subsidiary and the second one Domestic Firm, comparable on relevant parameters like size, product line etc will be identified .Qualitative or descriptive data and information regarding the variables included in the study will be collected by using a Semi-Structured Interview Schedule and conducting personal interviews with selected respondents in the two Firms. The secondary Data available in these Firms which will throw light on the research problems will also be collected. The two Firms will be compared on the study parameters using the qualitative information collected and Case Studies will be prepared.
    
    From the findings of the two phases of the study and analysis, we should be able to understand (1).whether M.N.C’s best practices are in use in their Foreign Subsidiaries, if so (2) what are those, (3) what conditions nurture them, (4) Are there best practices indigenously evolved, if so (5) what are those and (6) what conditions facilitated their functioning. The findings of the first phase of study using Quantitative Survey Research Methodology can be cross checked with those emerged in the second phase of study using Case Study Approach and Reliability and Validity of the findings can be established.
    
    I was associated with a some what similar research project on Institutionalization of Management Education in India (through I.I.M’S) Sponsored and conducted by MIT and Harvard Business School jointly with Shri. Ram Centre For Industrial Relations, New Delhi during 1970’s and I also published a paper identifying organizational conditions which contribute to diffusion of innovations by IIM Graduates in the Journal Indian Journal of Industrial Relations.
    
    2. A study of Changing Market Scenario in Urban setting, in Bangalore
    
    Companies develop products and services by anticipating standardized customer needs by In-house R&D and try to sell the products by creating demands through advertisements and using aggressive sales promotion techniques. The Customers have practically no choice except buying what ever is available. Evidences are there to attest this fact. For instance, once the products are sold, the buyers can not return the product or exchanged in most cases. The relationship between the Manufactures and Traders with the Customers ceases once the sale is affected. The customers hardly get informed about the products and services satisfactorily and the trend is to encourage impulsive purchase with the result, Consumers understanding of the relative standing of the products in terms of quality and features vis-à-vis price is very limited. So they generally do not know which products are better than which products. Though products carry warranty, the warranty classes are so stringent that hardly buyers get any benefit out of it. The availability and quality of After-Sale Service is also much to be desired. What these feature stand for is Firm-centric Approach to production and Distribution rather than Customer-centric Approach. This type of consumer market is also called as “sellers Market” as opposed to Buyers’ Market” in which it is said that ”Customer is the king”. If we consider marketing/selling as a continuum, we can call it as Conservative-Progressive ends of the continuum. What is described above follows conservative end. In a least developed economy, the Marketing and Sales trend might be conservative. With economic development; the market – orientation also undergoes change and modification. For example in a Developing economy, it might move from conservative end to Progressive end. Sensitivity to consumers needs may increase. Indian economy is in that stage for the last 4 decades. Since 1991 with the opening up of the economy to the world market, there was a shift to better customer-orientation, a shift towards the progressive end of the continuum. Market-orientation changes further with further Economic development. For instance in Developed Economies facing global challenges, the Market orientation undergoes substantial changes. It goes much beyond customer-orientation. An Incisive Research study done by Prof C.K.Prahlad and Prof Venkat Ramaswamy (reported in the book “Future of Competition”) have identified this phenomenon which they have called as “Co-creation of Values”, according which Manufacturers, customers, professionals and even the general public who have the necessary knowledge, skills and innovative sprit contribute to value addition. According to their prediction successful Firms will be Customer or Consumer-centric, in the sense that both the producers and the customers, who are the end users will work symbiotically for maximum value-creation and customization and new strategies will be adopted to meet these new challenges of developing unique Co-creation experience. Global participation in Co-creation of unique experiences also leads to unprecedented refinements and perfections that human being would ever try. Their breakthrough discovery and their theory of Co-creation issue a warning against formulation of very rigid Patent Systems. For instance in India, the issue of patenting is currently debated both in the Parliament and in the Mass Media. The ideas such as Patenting should not close doors for continuing improvements in the patented know-how by restricting its access to innovators and that it should cover only key ideas in Basic sciences and that it should not cover standard formulations, are being voiced.
    
    In the context of above discussions on possible changes in the Market-orientation in a globalized economy, it is interesting to find out at what stage is the Urban Market in Bangalore operates? Are consumers more aware of their rights now than before? Are the Indian companies particularly those which are Multinationals are enough consumer-oriented? How do Consumers perceive? In India legislation for protecting consumer interest has been in operation for the last few years. Consumer movements have also caught up momentum in recent years, apart from integration of Indian Economy with the Global economy. since 1991, almost 15 years since the opening up of the economy, this perhaps is sufficient time for the shift of market –orientation. So it is the right time now to launch such a study.
    
    If there is a shift from Firm-centric to Consumer centric, market orientation if not co-creation, we might expect the following changes:
    
    1. The manufacturers try to incorporate customer needs and preferences into the product. They conduct more consumer surveys to gather information and use as feed back more often than they were doing before.
    2. The sale attempts will be more Customer-friendly than before.
    3. Customers are more articulate now than before. We should come across more consumer complaints than seen before.
    4. Attending Customer Complaints regarding defects in the products and deficiency in services, those relating to After Sales Service more promptly and more satisfactorily than before.
    5. There should be less number of Consumer complaints filed against Consumer-centric firms by the Customers in the Consumer Courts compared to less Customer-friendly Companies.
    6. Foreign subsidiaries might adopt more Consumer-centric practices compared to Domestic companies.
    7. These Parameters should be positively correlated at statistically significant levels.
    
    Research Methodology
    
    A consumer survey is to be conducted. A small representative sample of consumers from Bangalore representing different Socio-economic levels is to be selected. The major Household Items which they bought during the last 3 years and the companies which manufactured those items are to be prepared, A Questionnaire to assess their Opinions, Attitudes and Experiences in regard to above parameters and in regard to their purchase of those Household Goods is to prepared. The sample Respondents are to be interviewed using the Questionnaire to collect their responses. Those responses are to be converted into numerical scale and subjected to Statistical Processes.
    
    Two Firms, one Foreign subsidiary and the other one Domestic, matched on a number of parameters like the Capital investment, product lines, Size, location etc are to be selected to compare those two firms to find out whether the Foreign subsidiary of MNC’s adopt more Customer-Centric practices, both technological and HRM/IR compared to Domestic Enterprises. As the two firms are matched on the above variables, the differences if we find in the introduction of Consumer-cetric practices can be attributed to the Management Philosophy of MNC’s.
    
    Results of the Study should help to verify the ercity of the statements/hypotheses mentioned above and should help us to know about the Market-orientaion.
    
    Based on the findings, it should also be possible to recommend best ways to make Sale presentation and to attend to after - sales complaints to the satisfaction of the customers.
    
    It is also possible to verify empirically in the Indian Context. The hypothesis that Customer-centric Firms are high performing ones compared to those who are Firm-centric and also to understand the practices, which we can call as “Next practices” in the Indian Industrial Milieu, which other Firms can adopt profitably.
    
    
    
    
    
    3. Study of Job turnover (Job Attrition) among the IT workers in Bangalore and Effective Strategies for retaining them.
    
    The questions that are asked are :
    
    What are the patters of job changes among knowledge workers? What are the personal, family and social profiles of those who shift jobs and those who stay in the job? How does employee turnover affect the companies? Do IT Companies adopt policies and practices which promote employee commitment? If so, what are those and how effective are they? Are they cost effective and operationally effective? Do companies which have policies for employee retention perform better than others who do not have any policy? What methods can be suggested drawn from the latest knowledge available in the filed of Applied Behavior Science that would fit in with the overall Business Policy of the Firms?
    
    4. Study of Organization Climate and Management Practices for creating work environment conducive for creativity, innovativeness, productivity, Quality and Customer-orientation.
    
    The question asked is what Leadership, Motivational and communication Techniques and other Personnel and Organizational Practices such as Team Building, Management by Committees, Developing a Matrix Structure of Organization Design, Job Enrichment, Employee Development using Performance Appraisal and Training and such other Morale and Motivation Boosters promote creativity? The interest is to find out the next best practices followed by those organizations which show edge over others which can be implanted in those low performing organizations to stay in an environment of turbulent change and fierce competition.
    
    In Bangalore, the boom of IT industry is a recent phenomenon. Hence IT Managements may not be having enough experience in the application of Modern Management techniques particularly in their field of Human Resources Management (H.R.M), the application of which is still to catch up even in other Industrial Sectors in India. So perhaps this is the right time to study the current status of institutionalization of Professional Management and promote its permeation into the system. Again as the IT industrial system is in its infancy, it is perhaps much easier to introduce changes, as the system resistance is expected to be less compared to old organizations, which have established their own value systems.
    
    
    5. Outsourcing IT Work to India – A Study of Economic, Social and Psychological Impacts on IT Workers and their families-A study of their adjustment problems.
    
    Outsourced IT work is a new and challenging experience to Indian employees who are relatively young. Though they possess excellent IT skills, they have to learn other capabilities such as collaborating with people having very different Socio – Cultural background, and speaking in different accents and have to work in the context of different time zones i.e. need to work in night shifts. It is not known whether these demands affects their personality and emotional adjustment, personal adjustment, and social and family adjustment which inurn affect their physical and mental health and in turn their productivity and quality of their life or whether they make satisfactory adjustments to the demands of their work and to demands of their personal, family and societal lives and if so it is interesting to know which can also be useful in helping others, what copping strategies they employ to balance the demands of the work and those of their Personal, Family and Social life. Considering the peculiar nature of their work, currently IT Companies provide them with certain incentives which are not available to other employees. The question is whether those incentives, which are not available to others, are sufficient to offset the ill effects of work and keep them in good emotional and physical health and sufficiently motivated to utilize their top IT skills.
    
    One of the early Research projects out of which a book was prepared by me was “Human Problems of Shift work”. It was an empirical study of the problems faced by people working in Night and Rotating shifts and how they coped up with them. This project was sponsored by Planning Commission, Govt. of Indian which also provided grant for its publication as a book. This book received Delhi Management Association/Escorts Award for being best and original empirical work. There was excellent comment on this book by Prof. Howard Baumgartel of Kansas University, U.S.A. The Research Frame work and Methodology used in that project can be adopted for the above study of IT people.
    
    
    6. A Study of IT Industries-Its Corporate Image
    
    IT Industry is of very recent origin in Bangalore, Hyderabad and Chennai and other parts of India. The pay packet and other perks offered are much higher in IT Industry compared to other sectors. How do employees in other sectors and Social and Political Leaders perceive this? What these socially and politically influential people – Influential General Public expect from IT Industry as its Social Responsibility? Do they expect their participation in the Socio-economic Development of the Local Area and if so what are their expectations? (Recently a strong view as come up that there should be reservation in IT jobs giving preference to local people) What are the considerations which Social and Political elites have concerning the new generation of IT Industry which influence their favorable attitudes and public support for the growth and development of IT industry? Public support is necessary for the long term growth and prosperity of IT Sector. So IT Industries should do all they can to develop and maintain favorable image of the General Public towards it. Currently some of the major IT Companies in Bangalore like Infosys, Wipro and others are participating in some social welfare programs. The question is as yet we don’t have reliable information regarding how the local community perceives, whether they have favorable view, whether they support State expenditure in IT, whether they see the current social and economic contributions made by IT Companies in Bangalore are adequate, in what other ways, would they want IT Sector to contribute to the society and so on without being detrimental to the efficiency of IT operations.
    
    
    7. Designing Performance Assessment/ Appraisal / Evaluation / Merit Rating / Performance Review System and Technique, Performance feedback focused on Development of competence and work Motivation.
    
    A good Appraisal System is necessary for meeting the twin objectives of performance control on the one hand and improving the Competencies and work Commitment of Employees and their Career development on the other. In IT industries which employ the so called knowledge workers, the need for this is all the more stronger. The system should be such that it should encourage the employees to seek continuous feed back from the task as well as from “Superiors, Peers and even from those who they supervise with a zest for perfection. A proper system of “Appraisal and its proper introduction are very potent tools in the hands of Management to get best out of their workforce.
    
    
    8. A study of Financial and Non-financial Incentives provided to IT Workforce in Bangalore and their Effectiveness in terms of their Morale, Motivation, Loyalty to company, Satisfaction with their Jobs, Personal Productivity, and Innovativeness or creative performance.
    
    IT Employers generally feel that retaining their employees is one of the problems they face. Young bright recruits look for change of their jobs no sooner they are adequately trained and the reason quoted is for better pay and other perquisites. So revision of pay from time to time is the easy strategy which Employers adopt, which probably is not the best strategy. It is adopted because, it is more visible and easy strategy and lack of awareness on the part of management of motivating potentials of Non-Financial Incentives, which are not as tangible as monetary incentives. It is known out of Behavioral Science Research that when the Non-financial Incentives are lacking in sufficient quantity, the employees not being aware of their absence, articulate their needs in terms of Financial Incentives, hence ask for more money and other perks. Thus the desire for better salary is a deficiency need and one will ask for more and more, so long as those underlying non-financial needs are not satisfied. Raising salaries and perks are not the real solutions for retaining employees. Monetary or Financial Incentives, on the other hand should have as close link with performance improvement, as one can make it, if those were to have motivational effect, in the sense of maintaining current level and constant improvement of performance. In the light of these facts, it is perhaps necessary to undertake a systematic study of the motivating potentials of various financial and non-financial incentives. The employee benefits offered by the IT companies now could be those not preferred by them. They may be dissatisfied with some or other aspects of their implementation. So for proper selection of appropriate financial and non-financial incentives and the proper implementation, it is necessary to undertake a systematic study using Survey Research Methodology. I used this Methodology in 1970 in one of the studies, I undertook in Perth, Western Australia. The Typology Of Organisations entitled “Organisational Climate and Motivation and Organizational Effectiveness” authored by me and published in a book edited jointly by me can also be used as framework for the study and for bringing about the needed changes in the internal systems and processes of the organizations under study. Prof. Howard Baumgartel of Kanas University had also recommended its use for organizational study and interventions.
    
    
    9. Case studies of High Performing IT Companies in Bangalore.
    
    It involves the study of Organizational Design, Management and Supervisory Styles, compensation plans, Welfare and employee Benefit Schemes, Personal Policies and Practices, Project planning, Implementation and Monitoring and Review Practices, Career planning, Training and Development, Development of Customer –orientation and Result-orientation, Development of partnership skills among Employees for coordinated work accomplishment, Programs for Developing Creative and innovative spirit, Training for adapting to alien cultures and Overcoming Cultural Barriers. Training given to the Employees for working as Members of a well knight Team, Training imparted to the Employees in Professional Ethics Integrity, openness and for contagious desire for continued improvements in what ever one undertakes and the mechanisms of Family and community support extended by the IT companies to facilitate the employee adjustments to the changed rhythms of IT work schedules and the work environment. A representative sample of High Performing IT companies can be compared with those of low performing companies on the above parameters as a controlled experimental study for more reliable findings.
    
    
    10. An In-depth Study of Effectiveness of Communication Skills in IT Staff working in Bangalore IT Firms.
    
    Communication skills, written and Oral, Personal, Interpersonal; and Institutional Mode of Communication such as Presentation Skills, Group Discussions and conference Skills are as vital as knowledge and skills in information Technology for achieving personal and organizational productivity, particularly in IT Industry which employs knowledge workers, to use the term coined by Peter Ducker. Effective communication promotes job clarity, Interdependencies and coordinated work, Team work and creativity, all of which ultimately leads to personal and Organizational Productivity and ability of the Firm to face global completion. Though employees with top IT skills are available in the Indian Labor Market, this by itself is not sufficient for achieving high performance for which above skills are in demand. The IT Workforce consists of relatively young people who are almost fresh from the campus, where there is no training imparted for the development of above skills. Again as IT Industry is in its infancy, it is doubtful whether sufficient training and development opportunities are made available with in the organization for developing and nurturing such skills. In any case, a study this kind is worth undertaking. The study of selected Firms may bring to light certain findings which can be applied to other similar organizations for improving the communication capabilities. Certain the so called best practices in communication already known can also be introduced in the Firms selected for study, if those are found to be lacking. The findings could also be contributions to International literature on the subject.
    
    
    11. Study of Customer Preferences for Services offered by Foreign subsidiaries of Financial Services / Firms in Indian – A study in Bangalore.
    
    There is unforeseen and unprecedented growth of Foreign Subsidiaries of Financial Firms like Commercial Banks and Insurance Companies in India in recent years due to deregulation. There is also increasing Private participation allowed by the Govt. in Banking Sector recently. Banking Industry now offers several new products and new service delivery channels much beyond their conventional ones. Govt. of India has recognized the vital role played by F.D.I for Socio-economic development in all Industrial Sectors including Banking Sector, which was most recently opened for F.D.I. Several Foreign owned Banks such as Citi Bank, American Express, and National Grind lays and so on have started their branch offices in India. Customer financial needs, and financial products offered to meet those needs have multiplied and is ever increasing day by day. So also the channels of delivery have been revolutionalised. With the advent of Information technology, new methods of delivery of services such as Automated Telephone Call Centers, and Computerized Trading Service via Internet have come to be introduced. As a result of proliferation of Banks including private sector Banks, Private Domestic Banks has increased beyond description, with the result we find each Bank vying with other to adopt most attractive products and methods of delivery of Services to retain their existing customers and woe the potential customers. Personalized Banking, luxurious furnishing of Branch offices for customer comfort, Quick transactions such as Issue of Drafts within ten minutes, friendly Counter staff. Offering unconventional services such as Payment of taxes, Electricity and Telephone bills, Assets Insurance etc are being offered to promote business.
    
    As the above developments are of very recent origin, they are not conceived based on the knowledge of customer needs and preferences obtained by Systematic Customer Surveys. On the contrary, the Bank Managements have developed those practices and the modes of Delivery of Services based on their intuitive knowledge and gut feelings. Thus it is in the fitness of things to plan and undertake a Customer Survey to understand how the Customers perceive the kind and quality of the services offered, how satisfied they are with those practices, what aspects of Services they are dissatisfied with?, how they do they want the services to be improved? And are there new services, they want to be extended? And if so what are they?
    
    Research Design
    
    Broadly two types of Methodologies are to be employed: Consumer survey and Case Study.
    
    Consumer survey
    
    It is to be conducted in two levels. At the first level, an explorative study will be done to identify the essential attributes of quality of services by interviewing a small sample of Respondents drawn from the customer’s list prepared by the banks. Both Clients who are satisfied and hence continuing patronage and those who have discontinued their transactions for reasons of deficient service are to be included from the intensive interview materials, an inventory of positive and negative factors (Positive factors are those reasons for continuing patronage and Negative Factors are the reasons for closing the accounts) can be drawn.
    
    At the second level, a survey of a fairly large stratified random sample of Respondents / clients are drawn from the Customer list available in as many number of Foreign Banks, as decided to be considered for study. Domestic Banks can also be included to do a comparative study of the Products and Quality of delivery services. A questionnaire with 7 points scale may be developed to elicit the responses to the factors identified from the unstructured interviews. A number of questions / items on each factor to be included, so that a numerical score can be worked out for each factor and an Interval type of Distribution of Data can be obtained. The statistical Techniques which can be applied for analysis of Survey Data are Means, Medians, S.D., Pearson’s Product Moment Correlation, Partial Correlation, Multiple Correlation, Multiple Regression, Multivariate Analysis of Co-Variance, and Factor Analysis.
    
    The data analysis should answer the questions:
    
    1. What are the Product and Service features which the Customers are satisfied with and what are their contributions to satisfaction or what are their relative importances as perceived by the Customers?
    2. What are the reasons for the Consumers to be dissatisfied with the Bank Transactions? And how important each one is compared to other?
    3. Are there differences in satisfaction and dissatisfaction which can be attributed to different segments of the Customers based on their socio-economic back ground (to differentiate the population based on Socio-economic background, Standardized Scale such as Kuppuswamy’s Socio-economic Scale available can be used)
    4. What are the improvements, which the customers look forward to for their hassle free Banking experience?
    5. Are Customer responses regarding the range of Products and their delivery or Total Quality of Services unidimensional or multidimensional? In other words How many Reasons are there and whether they form meaningful clusters which are independent of each other? This can be found out by the application of the Statistical Technique of Factor Analysis (Principle Component Method with Varimax Rotation) of Thurston.
    
    
    Payoff
    
    The results of the study should be helpful to the Managements to make their services most effective for promoting productivity vis-à-vis Customer Satisfaction.
    
    One of the studies which I did in association in two Public Sector Plants in India, titled “Communication and Industrial Relations as a part of Consultancy sponsored by Bureau of Public Sector, Govt. of India can be used as a part of the Model for this proposed Research Study.
    
    
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FLAT OWNERS WELFARE

FLAT OWNER’S WELFARE ASSOCIATION – MEMORANDUM-
A MODEL AGREEMENT

Prepared by Dr. Sreekumar Menon


LIVING IN FLATS -Foreword


Living in Flats has certain advantages compared to living in Independent villas in cities like Bangalore. Life and property are safer in Flats, as 24 hours security staffs are on duty. Residents in Flats can enjoy more facilities and amenities, because of common sharing of costs such as Lifts, backup Generator, cheap water supply etc. at much lesser costs than is possible, if they were to meet expenses individually. So they enjoy more comfort spending less. Another great advantage is scope for social life. As people are living under the common roof, they are able to lead a better social life and that mutual help is made available. In cities, where the next door neighbors are often strangers, Flat life is a boon in this respect. What is said is one part of the story or one side of the coin. There is another part or another side to it.

Along with the above advantages, people have to adjust to each other; for enjoying the kind of freedom, they can enjoy in an independent house. They should refrain from acting in such a way that it is disturbing to others who live in the same flat. Again, Flat Administration should be proper and effective, if the Residents were to derive the benefits of Apartment life or if the Residents were to enjoy the amenities provided and to be really happy with their life in the Apartments.

Framing of proper rules, regulations and guidelines in the Administration of Flats and their implementation in its proper spirit are essential if Residents want to reap the benefits of living in Flats.

With this end in view a highly democratic and development type of committee structure and function called as Flat Owners Welfare Association – Memorandum has been worked out carefully. Apartment Residents should be able to enjoy the full benefits which Apartment living can offer to them, if they adopt this scheme.

FLAT OWNER’S WELFARE ASSOCIATION – MEMORANDUM OF ASSOCIATION

1. Name of the Association.

1. Registered Office.

1. Aims and Objectives


2. To ensure marketable titles of the Building complex by procuring the necessary documents such as the Building Plan approved by BMP, Sanction letter and other legal clearance such as certificates for lift, certification for the Generator from Pollution Control Board etc. That is meeting legal requirements pertaining to Building complex and other facilities.


3. To manage, maintain and regulate the proper use of common shared areas and the facilities / amenities provided such as Housing keeping, that is keeping the common areas neat and tidy, Elevator facilities, Electricity system including lighting in the common areas and the car park and maintenance of water supply and Tube well, Motor and Pumping Mechanism, Generator running and maintenance, Collection of Garbage from individual Apartments and safe disposal.


4. To pay taxes / levies to the Government applicable to whole Building and common areas except individual Apartments and those applicable to other Services like Electricity charges f0r operating lift, Generator, common lightning etc.


5. To provide round the clock security to the Residents and their property by posting security staff.


6. To ensure safety of the Building Complex by insuring the Building Complex against natural and man made hazards such as Insuring the Apartment Complex, installing Fire Extinguishers and by enforcing safety regulations in matters of handling hazardous materials such as L.P.G. Gas, Prohibiting storage of inflammable materials in individual Apartments, checking electrical wiring to prevent short circuiting and consequent fire hazard, training security staff in the use of Fire Extinguishers etc.


7. To provide for regular up keep, maintenance, repair, replacement of parts of equipments, periodical white washing and painting interiors of common areas and exteriors, to maintain the look of the Building; to maintain Garden availing the Services of the Gardener, if budget permits.


8. To plan and implement developmental activities which are in the nature of adding to existing facilities, improving upon the existing facilities, as found appropriate from time to time.


9. To generally look after and be responsible by consulting Residents on matters of interest to them, to protect their rights and ensure their welbeing and enforcing their respective obligations/duties as responsible Residents and towards the welfare committee and towards each other.


10. To liaise with outside Agencies such as BMP, BSSW, BESCOM, Telephone Companies Cable T.V operators and so on matters having bearing on the administrations of the Apartment Complex and individual Apartments.


11. To Frame rules, regulations and bylaws, found necessary for orderly and efficient functioning of the Flat administration.


12. To coordinate with other Apartment complexes and other external Agencies when it is required for the creation of certain facilities.


13. To decide the rate of monthly maintenance charges and for levying for other sources of funds such as Reserve Funds, in consultation with Apartment Owners.


14. To provide and maintain common facilities in most economic way and build up Reserves for Capital Expenditure through extra-collection from members and investing the amount in low risk high growth instruments.


15. To promote facilities for Health, Recreation, social life, literary and cultural pursuits with in the Building Complex and to celebrate social festivals and National Days like  Independence Day and Republic Day and thus giving chance for the Residents to meet each other and develop fellow feelings .

To realize the above objective, a Managing Committee having two tiers have been settled and the activities which it would undertake have also been spelt out.

Two tiers or Types of Committees :

1. Policy Making Committee and implementation Committee.

This Committee is empowered to take all the major decisions concerning Flat Administration such as fixing monthly Maintenance, levying money for annual Repair and Maintenance of the Building, Capital expenditure, Creation of new facilities etc. Here, Managing Committee referred to above is the Policy making Committee and implements those decisions which have long term implications. . Only owner members are eligible to serve in this committee. This Committee will consist of three Owner Members. Serving in this committee is mandatory for all the Owner Members. They serve in turn .The names of persons to serve in this Committee are chosen by lot, if the Members do not volunteer to serve in the committee. Those members will elect among themselves President, Secretary and Treasurer.

1. House Keeping Committee

This Committee discharges the function of Day to Day house keeping functions. This committee consist of President, Secretary and Treasurer and another two members are elected/selected by Residents among themselves. This Committee allows participation of Tenants in the day to day management of House Keeping functions. Tenants get chance to give their views and opinions regarding how satisfactory are maintenance functions and what can be done to make it better from the point of view of satisfaction of Flat users.

Though Tenants can choose their representatives to this Committee they do not have voting rights in selecting Members of the Managing Committee. Both Managing Committee and House Keeping Committee should meet atleast once in a month. General Secretary should prepare Agenda for the meeting, in consultation with the president and circulate it in a notice including the minutes of the previous meeting atleast 4 days prior to holding meeting. All the office bearers are expected to read the Agenda and prepare themselves for meaningful participation in the meeting. The quorum for Managing Committee meeting could be 3 and that for House Keeping Committee, 4.

As far as possible, decisions should be agreed by all. In cases it is not possible, the issue is to decided by simple majority vote.

Powers of Office Bearers

1. President

President will have overall control of Maintenance Administration of the Association. Generally, he should be a person with good knowledge in technical matters related to Building construction, utility services, legal and administrative matters pertaining to ownership of Flats ,  having ability to liaison with Government and other Agencies ,  having Planning and Administrative Skills and should be sociable with people. He should be able to speak fluently in a language such as English, a language which is understood by all the Residents. He should also have interest in social service and should be friendly with people. He should be able to take quick decisions and implement them speedily.

He will have to represent the Association for all legal actions to enter into contracts or pursue legal action to safeguard the interest of the Association. He is authorized to sign all necessary papers and documents. He is indemnified against risks or lose to the Association that might happen, in spite of his best efforts and actions in good faith.

In his absence, President can authorize any other members of the Executive Committee to officiate, in consultation with the members of the Executive Committee.

2. Secretary
He will implement the decisions of the Executive Committee and discharge day to day administrative Activities of the Association, under the guidance and general supervision of President. He appoints Employees such as Security Staff, Housing Keeping Staff, as approved by the Managing Committee and supervise their work to meet the expected standards. He is authorized to incur expenses not exceeding Rs.________ towards house keeping expanses, without prior approval of the Managing Committee. He ensures regular collection of Maintenance and other levies and can impose penalty for delayed payment or non-payment.

Person to be elected to the post of General Secretary should be friendly with people, should have interest in rendering Social Service and should carry out tasks by considering the views and opinions of the Members, who are affected by his actions.

He should not act what he personally thinks right, without consulting people and in such a way that the Members feel that he is not acting in the common interests. He should be soft spoken and approachable. He should be able to speak fluently and clearly. He should possess administrative skill. He should be objective in what ever he is doing.

He can hold a petty cash account not exceeding Rs._________ with him for incidental expanses. However, this cash balance is to be incorporated in the Treasures Account.

1. Treasurer

He is in the custody of all properties of the Association including Funds. He should maintain a Asset Register and enter all the properties of the Association in detail in it. He should keep it up to date. He should keep the Accounts as per the standard Accounting procedure adopted and such that it meets annual auditing requirement. The person who holds Treasurer’s position should have interest in maintaining accounts or should like to work with numbers and should be prompt and systematic in preparing accounts.

He is empowered to operate Bank Accounts of the Association jointly either with President or Secretary, Preparation of statements of Accounts including Annual statement is his responsibility. He may have to present financial picture to Managing committee as and when it is required.

The Representatives of the Tenant Members are also expected to look after some specific Functions such as overseeing functioning of lift and Generator, lighting arrangements and House keeping.

The term ‘Owner’ stand for the person in whose name Sale Deed is registered, and also includes their relatives like spouse, children, parents, in-laws and so on, whom the Owners authorize to represent them.

Any Member of Managing Committee absents himself / herself without the approval of the Committee / sufficient reasons, for more than three meetings automatically ceases to be the officer bearer. Any Member can Vacate his Membership position, when his resignation letter is addressed to President is accepted by the Committee.

Owner Membership
All the Owners of the apartments are to become Members compulsorily. In the case of joint ownership only one person, either the first or second person will be member of the Association. In the absence of the person who owes the Flat, he can nominate one of his close relatives fro Owner Membership.

Tenant Members
In the Flats which have been rented out, the Tenants become Tenant Members, automatically.

General Body
Authority of General Body
The ultimate authority on all matters of Flat Administration rests with General Body.

More specifically,

1. The General body frames subsidiary rules which are called Bylaws and amends existing ones, consistent with the Rules and Regulations of the Association, found necessary from time to time for effective administration of Association Mattes.


2. Examines reviews and passes Annual Accounts.


3. Examines and passes Annual Budget.


4. Conducts elections of Members of the Managing Committee and House Keeping Committee.


5. Rectifies Disciplinary Actions taken against Owner Members, Tenant Members and Office Bearers for violation Bylaws.


6. General Body has power to remove any office bearer from his position if he is found working against the interest and welfare of the Members and Flat Ownership.


7. Approves raising of and expenditure from Reserve Fund.


8. Approves expenditure over Rs.20,000/- under any head in Annual Account.


9. Fixes monthly maintenance charges, Revisions and creation of Reserve fund.

Notice
Notice for General Body / Extra-ordinary General Body Meetings to be served to the member’s minimum of 21 days in advance. For Annual General Body Meeting, audited statement of Accounts should also be made available. Along with the Agenda for the meeting. Notice to the members to be sent in writing in Delivery Book and receipts to be acknowledged. Notice to the Members staying outside and out of Bangalore, is to be mailed by post or the massager to be transmitted via E-mail. Members are to be informed for acknowledging the receipt of notice for General Body Meeting.

All the Members are expected to attend the Meeting and take part in the deliberations and help to conduct the proceedings in an orderly manner. The Members who are unable to attend the meetings are expected to keep the Managing Committee informed.

At least 25 percent of total members should be present to meet the requirement of quorum. If the Members present fall short of that number, the meting is to be adjourned to a later date. If in the second meeting also, if the quorum is not met, the Managing Committee can conduct the meeting and take decisions. The decisions taken will be considered as reflecting the consent of all the members. If the meetings consistently fall short of required number of people, the members are to be reminded of  their responsibility to attend the meetings. If the orderly, peaceful and productive ways of conducting meetings are disturbed by members, they are to be reminded of the need to conduct themselves as responsible members. If they don’t heed, the other members of the General Body is expected to invoke what ever sanctions they think fit, against those erring members.

The President of the Managing committee who presides over the meeting and other members of the Managing Committee who share in organizing General Body Meeting are excepted to give enough opportunity to the Members to express their views, without cutting them short or imposing their views using power of their positions. Similarly, the members should say whatever they want to say without offending others. Enough opportunity should be given by all for the emergence of common views and agreements in the discussions. Members should accept the views and opinions commonly expressed and not try to be argumentative. In other words, the so called “Problem Solving Approach” should be adopted in all meetings.

The following are the sources of Funds for Association Expenses

1. Admission Fee paid by every Member.


2. Monthly Maintenance Fees, as fixed.


3. Interest from Bank Deposits


4. Any additional collection for Developmental Work and Revenue as approved by General Body.

An Admission fee of Rs.500/- Payable by every Owner member at the time of enrolling as the Owner Member. A monthly maintenance charge as determined by General Body from time to time should be paid by Owner Member / Tenant Member regularly every month in advance with in 10th of that running month. It is the final responsibility of the Flat Owner to pay the monthly maintenance charges. However they can arrange with his tenants to pay. If the Tenants default payment, the Owner of those Flats, rented out are to be held responsible. For delayed payment, some interest on the amount as decided by General Body may be charged for various periods. If payment is pending for a long time, General Body can impose other sanctions like cutting water supply. The power to impose such sanctions will vest with the Managing Committee. The Owner Members agree for such actions, as such it will be considered legal and no dispute arising out of that can be brought to court of Law. Out of the funds collected, a part should be kept as a Fixed sum, as decided by General Body as Reserve Fund for meeting Capital Expenses for creating new facilities , long term recurring expenses like Maintenance of the common Areas and Exteriors of the Building Preventive Maintenance of Elevators, Generators etc., payment of annual Taxes to the Government Bodies etc. Rest of the money is to be kept in the General Fund for meeting day to day and monthly recurring expenses such as staff salary, purchase of materials for House Keeping etc.

President will preside at the Managing Committee Meetings, General Body / Extra-ordinary General Body Meeting. In his absence any other Member will be asked by the President in Consultation with Managing Committee Members to preside over and conduct meetings.

The Duties and Responsibilities of Owner / Tenant Members
These have been laid down as By-laws; duly approved by General Body.

1. All members are to pay regularly and promptly the monthly maintenance charges fixed by General Body before 10th of every month. For any payment after that period, an interests of 30% per annum to be charged from the due date till the date of payment.

The fee is fixed currently as 60 paise per Sq.ft of the super built area of the Flat. Subjectto increase or decrease as decided by the General Body.

1. All apartments should be used for Residential purpose only. Car parks should be used only for parking the vehicles. Neither the Flats nor the Car parks should be used or rented out for any commercial purpose.

1. No hazardous and or inflammable materials should be stored in the Flats or in the car parking area.

1. No Flat Owner should alter the basic structure of their Flats, such as changing the positions of entrance door, windows etc which mars the original architecture of the Apartment Building.

1. All the fittings and fixtures that are there in the common areas like Name Boards, Letter Boxes, Grills, Gates etc., and the space in the common area should not be altered in any manner either by the Owners or Tenants.

1. The Managing committee at its discretion can allow to put the Names of Tenants, along with Name of Owners with their respective Flat No. on the Name Board, on the request of Owners/ Tenants.

1. No member should stick bills / notice, display advertisements on the outer walls or any other common areas nor should soil the wall. All should co-operate to keep the place neat and tidy.

1. Furniture, Empty cartons, shoes Racks, Dustbins , Flower Pots or any other objects should not be kept in the common Verandahs, staircase etc., which affect cleanliness and appearance.

1. Common areas should not be used to host private parties, congregations etc without permission from Managing committee and without seeking the consent of the neighboring flats and without undertaking responsibility for not causing disturbance to others and for keeping the place clean, after the get together.

1. Structure alteration with in one’s Apartment that affects the strength and architectural appearance of the whole Building should not be made.

1. The Flat Owners should carry out the internal maintenance work. They will be accountable for damage caused to other Flats / other parts of the building for want of timely maintenance work carried out in their Flats.

1. Owners should meet the costs of major repairs relating to lighting, water supply and sanitation by themselves including costs of materials and labour. However for minor repairs, services of the Technicians are made available free of cost by the Association.

Association will maintain in their pay roll a part time Electrician and Plumber (Sanitary Worker)

1. The car parking area should be used for parking cars or two wheelers only. The vehicles should be parked with in the parking area. The vehicles should not obstruct the free movements in the Run way and or common areas. While starting the vehicles, the engine should not be raised high causing loud sound. If the sound of high intensity is due to defective silencer which needs correction, it should be attended to. Similarly, they should also ensure that too much exhaust smoke due to poor turning of Engine is not released, in the Car Park area. Sound of high intensity is disturbing to those who stay in the Flat. Similarly Exhaust smoke pollutes the environment in the Flat and causes health hazard to the Flat Dwellers. Flat occupants while reversing their vehicles should switch off the Reverse Horn, which causes disturbance and also refrain from honking, to call security staff to open the gates, especially during night.

1. Common areas and facilities should be put to proper use. Common areas include space left on all sides of the Building, common run ways in the car parking areas, Verandahs, Staircase, Lift room etc. These areas should be available for all and no one should do anything that affects the common use. Verandahs serving on passage should be used only for normal transit through them. They should not let their children play or do cycling etc in those areas.

1. Right of Entry

• In the face of the emergency such as short circuiting, breakage of main water-pipes etc originated in an Apartment, which might affect safety of other Apartments or the whole building, if the Owners / Occupants are not available, any member of the Managing Committee can break open the lock and enter the Apartment without prior permission, in order to avert the danger. However, in  such cases, the person who breaks the lock / door open will do it in such a way that only minimum damage is caused to the door and fixtures and that the Managing Committee will get the damaged part repaired / replaced as decided by the committee or will reimburse reasonable charges for repair etc. as decided by it.

• All people other than those who stay in the Flats should enter their Names and Address, in the Visitor’s Book kept at the Security Desk; before entering the Apartment. Security Personnel can also enquire about their where about and satisfy themselves that they are bonafide visitors. If security staff has any doubt, he may allow their entry only after checking with the person/s in the Flat whom they want to meet.

Managing committee can also issue entry pass to the relatives of the families in the Flats, as requested by representative Flat Owners; in such case the responsibility is their s for any undesirable happening on account of admission for their entry in the Building.

• Security Staff should keep a Register recording all the personal details of the people including photographs like Ayahs, who come to the Building daily and passes should be issued to them. Such details should be made available to the nearest police station which comes handy when thefts etc. are to be investigated.

• No outsiders / Strangers such as Sales people, people visiting houses for collecting money for charitable purpose should be given entry into the Apartments.

Technicians who come to attend the repairs in Flats and people like L.P.G Gas delivery boys, or boys delivering provisions etc on order should be permitted entry into Apartments only after checking with the occupants of the concerned Apartment, whom they say they want to meet.

These steps are taken for ensuring safety of life and property of the flat occupants and such restrictions should not be seen as acts of curtailing freedom of the Residents. However the Security Staff is expected to be polite and decent in their dealing with these people. Any complaints regarding the behaviour of the security staff can be brought to the attention of General Secretary.

• Residents are expected to follow safety regulations in handing and use of such equipments like L.P.G Cylinder, in maintaining proper electrical circuits etc. such that no accidents which originate from above causes happen and the safety of the individual Flats and the Building as a whole are ensured.

If any such accidents occur due to negligence of safety practices by the Residents, they have to compensate monetarily for the lose due to accidents.

• During normal times also Members of the Managing Committee, whom they authorize may have to enter flats to attend to repairs of electrical, sanitary and other systems, as a part of their maintenance work pertaining to the whole building. At that time they should be permitted to enter the Flats. At the same time Managing committee should see that the Residents are not unduly disturbed. The Managing Committee Member or any authorized person should oversee the work of the person inside of an Apartment to see that the Residents are not put to unnecessary inconvenience

1. Residents should not throw Garbage through their windows towards outside. Garbage should be collected and kept in a Dustbins and should be given to Ayahs for safe disposal. It is the duty of the Managing Committee for the regular removal of the garbage from the Garbage Bin and keep the place neat and clean. Residents should not wash their sit out with water which splashes out and falls on those down below.

1. Residents should not play Radio / T.V / Audio / Video equipments in such high volume that it disturbs the neighboring Flats. Similarly, while cooking they should ensure that no strong smell of Masalas, non-veg. items etc. emanates, which neighboring  Flat people feel obnoxious or repulsive. In cases of such deep frying, use of kitchen chimneys is recommended.

1. Residents should use all the facilities and resources provided such as Lifts, Water etc. properly. Water for instance is a precious resource. It is not ever lasting. To bring water to house taps also costs. So it should never be wasted. Managing Committee should oversee the use of water. Water should not be used disproportionately.

The fixtures in the common areas such as lifts should be used with care, so that it does not go out of order frequently and these are kept in good shape. If any one uses these roughly and spoils he is to get it repaired or replaced as the Managing Committee decides fit. It is the responsibility of all the Residents to keep everything in the common area in presentable and good condition.

Disciplinary Appeal Committee
The Managing Committee is authorized to enforce discipline in the use of common areas, resources and facility by all Residents and they can impose sanctions. If the persons against whom the actions have taken are aggrieved, they can appeal to Policy making committee for redressal.

The Members can give suggestions for improvement and creation of new facilities to
Managing Committees. Owner members can give suggestion for actions having long term implication  which call for high expenditure to Policy making committee Both Owner members and Tenant Members can offer their suggestions for action for improvement of facilities regarding day to day matters to Maintenance Committee.  The Committee Members are expected to consider their suggestions objectively and seriously and try to implement those which are worthy of implementation. They are also expected to inform to the persons who made suggestions whether those suggestions have been considered favorably and if those are not considered favorably ,the reasons thereof.
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