HUMAN RESOURCE MANAGEMENT

Meaning:
Human Resource Management is the process of recruitment and selecting employee, providing orientation
and induction, training and development, assessment of employee (performance of appraisal), providing
compensation and benefits, motivating, maintaining proper relations with employees and with trade unions,
maintaining employee’s safety, welfare and healthy measures in compliance with labour laws of the land.

Definitions:
Many great scholars had defined human resource management in different ways and with different words,
but the core meaning of the human resource management deals with how to manage people or
employees in the organization.

Edwin Flippo defines- HRM as “planning, organizing, directing, controlling of procurement, development,
compensation, integration, maintenance and separation of human resources to the end that individual,
organizational and social objectives are achieved.”

The National Institute of Personal Management (NIPM) of India has defined human resources –
personal management as “that part of management which is concerned with people at work and with their
relationship within an enterprise. Its aim is to bring together and develop into an effective organization of
the men and women who make up enterprise and having regard for the well – being of the individuals and
of working groups, to enable them to make their best contribution to its success”.

Importance of HRM
Human Resource Management becomes significant for business organization due to the following reasons.
 Objective:- Human Resource Management helps a company to achieve its objective from time to
time by creating a positive attitude among workers. Reducing wastage and making maximum use of
resources etc. 
 Facilitates professional growth:- Due to proper Human Resource  policies employees are trained
well and this makes them ready for future promotions. Their talent can be utilized not only in the
company in which they are currently working but also in other companies which the employees
may join in the future.
 Better relations between union and management:- Healthy Human Resource Management
practices can help the organization to maintain co-ordinal relationship with the unions. Union
members start realizing that the company is also interested in the workers and will not go against
them therefore chances of going on strike are greatly reduced.
  Helps an individual to work in a team/group:- Effective Human Resource practices teach
individuals team work and adjustment. The individuals are now very comfortable while working in
team thus team work improves.
 Identifies person for the future:- Since employees are constantly trained, they are ready to meet
the job requirements. The company is also able to identify potential employees who can be
promoted in the future for the top level jobs. Thus one of the advantages of HRM is preparing
people for the future.
 Allocating the jobs to the right person:- If proper recruitment and selection methods are
followed, the company will be able to select the right people for the right job. When this happens
the number of people leaving the job will reduce as the will be satisfied with their job leading to
decrease in labour turnover.

SELECTION: –
MEANING OF SELECTION:
Selection is the process of picking up individuals (out of the pool of job applicants) with requisite
qualifications and competence to fill jobs in the organization. A formal definition of Selection is as under
Definition of Selection:
“Selection is the process of differentiating between applicants in order to identify and hire those with a
greater likelihood of success in a job.”

PROCESS / STEPS IN SELECTION

1. Preliminary Interview: The purpose of preliminary interviews is basically to eliminate unqualified
applications based on information supplied in application forms. The basic objective is to reject misfits. On
the other hands preliminary interviews is often called a courtesy interview and is a good public relations
exercise.
2. Selection Tests: Jobseekers who past the preliminary interviews are called for tests. There are various
types of tests conducted depending upon the jobs and the company. These tests can be Aptitude Tests,
Personality Tests, and Ability Tests and are conducted to judge how well an individual can perform tasks
related to the job. Besides this there are some other tests also like Interest Tests (activity preferences),
Graphology Test (Handwriting), Medical Tests, Psychometric Tests etc.
3. Employment Interview: The next step in selection is employment interview. Here interview is a formal
and in-depth conversation between applicant’s acceptability. It is considered to be an excellent selection
device. Interviews can be One-to-One, Panel Interview, or Sequential Interviews. Besides there can be
Structured and Unstructured interviews, Behavioral Interviews, Stress Interviews.
4. Reference & Background Checks: Reference checks and background checks are conducted to verify
the information provided by the candidates. Reference checks can be through formal letters, telephone
conversations. However it is merely a formality and selections decisions are seldom affected by it.
5. Selection Decision: After obtaining all the information, the most critical step is the selection decision is
to be made. The final decision has to be made out of applicants who have passed preliminary interviews,
tests, final interviews and reference checks. The views of line managers are considered generally because it
is the line manager who is responsible for the performance of the new employee.
6. Physical Examination: After the selection decision is made, the candidate is required to undergo a
physical fitness test. A job offer is often contingent upon the candidate passing the physical examination.
7. Job Offer: The next step in selection process is job offer to those applicants who have crossed all the
previous hurdles. It is made by way of letter of appointment.
8.  Final Selection

RECRUITMENT
Meaning:
Recruitment is a positive process of searching for prospective employees and stimulating them to apply for
the jobs in the organization. When more persons apply for jobs then there will be a scope for recruiting
better persons.

Recruitment is concerned with reaching out, attracting, and ensuring a supply of qualified personnel and
making out selection of requisite manpower both in their quantitative and qualitative aspect. It is the
development and maintenance of adequate man- power resources. This is the first stage of the process of
selection and is completed with placement.

Definition:

According to Edwin B. Flippo, “It is a process of searching for prospective employees and stimulating and
encouraging them to apply for jobs in an organization.” He further elaborates it, terming it both negative
and positive.
In the words of Dale Yoder, Recruitment is the process to “discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting that manpower in
adequate numbers to facilitate effective selection of an efficient working force.”

Process of Recruitment:

Recruitment Process Passes through the Following Stages:

(i) Searching out the sources from where the required persons will be available for recruitment. If young
managers are to be recruited then institutions imparting instructions in business administration will be the
best source.
(ii) Developing the techniques to attract the suitable candidates. The goodwill and reputation of an
organisation in the market may be one method. The publicity about the company being a professional
employer may also assist in stimulating candidates to apply.

(iii) Using of good techniques to attract prospective candidates. There may be offers of attractive salaries,
proper facilities for development, etc.

Factors Influencing Recruitment:

All enterprises, big or small, have to engage themselves in recruitment of persons. A number of factors
influence this process.

1. Size of the Enterprise:

2. Employment Conditions:
3. Salary Structure and Working Conditions:
4. Rate of Growth:

Sources of Recruitment

In planning recruiting activities, an organization needs to know how many applicants must be recruited.
Since some applicants may not be satisfactory an others may not accept the job offers, and organization
must recruit more applicants than it expects to hire. Now we will discuss the different sources of
recruitment that are available to organization:

Recruitment sources
Internal Recruitment
Promotions
Transfers
Employee Referrals
Former Employees
Retrenched Employees
Compassionate appointments
 
 
External Recruitment
College recruitment
Competitors and other firms
Employment agencies
Labour unions
Executive search firms
Professional associations
Internet recruitment
Media sources
Training: Meaning, Definition and Types of Training!
Training constitutes a basic concept in human resource development. It is concerned with developing a
particular skill to a desired standard by instruction and practice. Training is a highly useful tool that
can bring an employee into a position where they can do their job correctly, effectively, and
conscientiously. Training is the act of increasing the knowledge and skill of an employee for doing a
particular job.

Definition of Training:

Dale S. Beach defines training as ‘the organized procedure by which people

learn knowledge and/or skill for a definite purpose’.

Training refers to the teaching and learning activities carried on for the
primary purpose of helping members of an organization acquire and apply the
knowledge, skills, abilities, and attitudes needed by a particular job and
organization.

According to Edwin Flippo, ‘training is the act of increasing the skills of an

employee for doing a particular job’.

Need for Training:

Every organization should provide training to all the employees irrespective of their qualifications and
skills.

Specifically the need for training arises because of following reasons:

1. Environmental changes:
2. Organizational complexity:
3. Human relations:
4. To match employee specifications with the job requirements and
organizational needs:
5. Change in the job assignment:
Importance of Training:

Training of employees and mangers are absolutely essential in this changing environment . It
is an important activity of HRD which helps in improving the competency of employees.
Training gives a lot of benefits to the employees such as improvement in efficiency and
effectiveness, development of self confidence and assists every one in self
management.

The stability and progress of the organization always depends on the training imparted to the
employees. Training becomes mandatory under each and every step of expansion and diversification. Only

training can improve the quality and reduce the wastages to the minimum. Training
and development is also very essential to adapt according to changing environment.

Types of Training:
Various types of training can be given to the employees such as induction training, refresher training, on
the job training, vestibule training, and training for promotions.

Some of the commonly used training programs are listed below:

1. Induction training
2. Job instruction training
3. Vestibule (Entry) training
4. Refresher training
5. Apprenticeship (internship) training
PLACEMENT

Placement is a process of assigning a specific job to each of the selected

candidates. It involves assigning a specific rank and responsibility to an individual. It implies matching
the requirements of a job with the qualifications of the candidate. Placement is understood as assigning
jobs to the selected candidates. Assigning jobs to employees may involve a new job or different job.

Thus, placement may include initial assignment of job to new employee, on transfer, promotion or
demotion of the present employees. Placement involves assigning a specific job to each one of the
selected candidates. However, placement is not so simple as it looks. Instead, it involves striking a fit
between the requirements of a job and the qualifications of a candidate.

Definition of Placement:

“placement” may be defined as “the determination of the job to which an

accepted candidate is to be assigned, and his assignment to that job.

It is a matching of what the supervisor has reason to think he can do with the
job demands (job requirements).

it is a matching of what he imposes (in strain, working conditions),” and what

he offers in the form of pay roll, companionship with others, promotional
possibilities, etc.

A proper placement of a worker reduces employee turnover, absenteeism and accident rates, and improves
morale.

Significance of Placement
 It improves employee morale.
 It helps in reducing employee turnover.
 It helps in reducing absenteeism.
 It helps in reducing accident rates.
  It avoids misfit between the candidate and the job.
 It helps the candidate to work as per the predetermined objectives of the
organization.

DEVELOPMENT
Encouraging employees to acquire new or advanced skills, knowledge, and view points, by providing
learning and training facilities and avenues where such new ideas can be applied.

Employee development is a joint initiative of the employee as well as the employer to upgrade the
existing skills and knowledge of an individual.

It is of utmost importance for employees to keep themselves abreast with the latest developments in the
industry to survive the fierce competition.

Employee development goes a long way in training, sharpening the skills of an employee and upgrading
his/her existing knowledge and abilities. In a layman’s language, employee development helps in
developing and nurturing employees for them to become reliable resources and eventually benefit the
organization. Employees also develop a sense of attachment towards the organization as a result of
employee development activities.

IMPORTANCE
 Employee development activities help in the growth and development of employees, who are the
true assets of an organization.
 Employees who give their heart and soul to the organization also expect something in return.
 Employee development is important for employees to enhance their skills and upgrade their
existing knowledge in order to perform better.
 Employee development is important not only for professional but also personal growth of
employees.
 Every employee likes to acquire new skills and learnings while at job.
 Employee development creates a learning culture in the organization where every employee is
motivated to learn new skills and acquire new learnings.
 Employee development helps an employee to do a self analysis of himself/herself.
 Employee development activities and trainings help the employees to overcome the gap between
their current stage and where they would like to see themselves five years down the line.
Performance Appraisal System

The performance appraisal is the process of assessing employee performance by way of comparing
present performance with already established standards which have been already communicated to
employees, subsequently providing feedback to employees about their performance level for the purpose of
improving their performance as needed by the organisation.

Performance appraisal has been defined by different scholars in various ways. Some of the important
definitions are as follows:

Dale S. Beach, "Performance appraisal is systematic evaluation of the individual with respect to his or her
performance on the job and his or her potential for development".

Randall S. Schuler, "Performance appraisal is a formal, structured system of measuring and evaluating an
employees job, related behaviour and outcomes to discover how and why the employee is presently
perfuming on the job and how the employee can perform more effectively in the future so that the
employee, organisation, and society all benefit."

Objectives of Performance Appraisal

The main objective of performance appraisals is to measure and improve the performance of employees
and increase their future potential and value to the company. Other objectives include providing feedback,
improving communication, understanding training needs, clarifying roles and responsibilities and
determining how to allocate rewards.

 Providing Feedback.
 Facilitating Promotion Decisions

Performance Appraisal process

1. Establishing Performance Standards
2. Communicating the standards and expectations
3. Measuring the actual performance
4. Comparing actual performance with standards
5. Discussing results or feedback
6. Decision Making for corrective action

Methods of Performance appraisal

Traditional Methods
1. Rating Scale Method
2. Essay method appraisal
3. Ranking method
4. Paired comparison
5. Critical incident method
6. Confidential report
7. Checklist method
8. Graphic rating scale
9. Forced distribution

Modern Methods
1. Assessment centres
2. Behavioural Anchored rating scale
3. HR accounting
4. Management by objectives
5. Customer feedback method
6. 360 degree appraisal method.

ENTREPRENEURS LEGAL ISSUES

While a lot of entrepreneurs at least have a basic understanding of the law, most of them fail to think about
the legal implications of starting a company. Many startups who are trying to save money on hiring
attorneys are turning to online legal service companies who provide low cost services.

However, there are numerous unforeseen pitfalls with using these types of contracts when it comes to
ensuring that your new company is legally sound. In general, a new company should be legally sound from
the get-go and one of the best ways to ensure that is to consult with an attorney. A good attorney will be
able to properly advise you and tailor their advice to your particular situation.

Here are some common legal issues entrepreneurs will face:

1. Is my business compliant?

Corporate compliance affects companies in all types of industries. It is important to find out what type
of records and other documents should be generated and maintained by your business. The laws,
which apply to your business, will vary depending on a range of different factors, such as what type of
business entity you are and what state you do business in. As a result, it’s usually important to consult
with an attorney to ensure that your company is compliant with any federal and state laws that might apply
to you.

2. What business structure should I use?

There are multiple business structures available and using the best structure can be critical to ensuring that
your company is successful. For instance, are you interested in having your company go public in the
future or do you want to remain a private company? Are you planning on taking on investors or will
you be privately funded? What type of growth do you predict your company will have in the future?

The answers to all of these questions will lead to structuring your company in a variety of ways.

3. How should I avoid legal problems with employees?

Generally, every company should limit their liability as much as possible before taking on any new
employees. Typically, company owners should have an employee handbook in place and ensure that all
new employees sign an acknowledgement form stating that they received the handbook. The handbook
should address everything from the company’s sexual harassment policy to the office dress code.

4. Am I properly protecting my personal assets?

It is always important for a company owner to keep their personal and business assets separate. The
best way to do this is to maintain a separate business bank account and only pay for business-related items
and expenses from your business account. In the event that a creditor sues you, they may be able to seize
your company’s assets if they were purchased using your personal funds.

5. How should I structure a partnership agreement?

Many new companies fail due to the fact that there never was a well-written partnership agreement
in place that spelled out the duties and obligations of each partner and covered all issues that could
have arisen in the future. For instance, will the partners agree all company decisions on unanimously or
by majority rules? How much equity will each partner have in the company? How will company assets be
split up in the event of dissolution? All of these issues and many more must be tackled and addressed in a
comprehensive partnership agreement at the outset of forming the partnership.

6. Am I properly protecting my business name?

A large amount of companies begin using a name only to find out that another company has already
been using that exact same name. A company should usually do a trademark search on the web and with
the USPTO to ensure that a business name is available. An attorney can help you register your name as
well as a logo and assist you with protecting against anyone infringing on your intellectual property.
7. What should I do if I get sued?

In the event that your company is sued, it is ideal to try and settle a lawsuit prior to going to court. An
attorney can use their negotiating skills against an adverse party and work towards settling with them and
saving your company the risk of going to court and potentially losing your case. In the event that a case
cannot be settled, it’s best to consult with an attorney on the best strategy for winning your case in court.

8. Should I use a non-disclosure agreement?

If your company is looking to share propriety information with another company with the intent of
potentially forming a joint venture, then it might be appropriate to have a non-disclosure agreement in
place. It is important to make sure the non-disclosure agreement is very detailed and lays out exactly what
proprietary information will be shared. Otherwise, you might risk losing valuable work to a competitor and
cause major setbacks in making your company a success.

9. Do I need an attorney or can I do it on my own?

Sometimes, you might perceive a legal problem to be small when in fact the problem can potentially
impact your business in ways that only an attorney can foresee. While you can certainly read up on a
particular legal issue if you have the time, it’s best to consult with an attorney who can anticipate various
legal pitfalls your company might encounter.

CONFLICT:
Organizational conflict, or workplace conflict, is a state of discord caused by the actual or perceived
opposition of needs, values and interests between people working together. Conflict takes many forms in
organizations. There is the inevitable clash between formal authority and power and those individuals and
groups affected.

There are disputes over how revenues should be divided, how the work should be done, and how long and
hard people should work. There are jurisdictional disagreements among individuals, departments, and
between unions and management.

There are subtler forms of conflict involving rivalries, jealousies, personality clashes, role definitions, and
struggles for power and favor. There is also conflict within individuals – between competing needs and
demands – to which individuals respond in different ways.[

MECHANISMS FOR RESOLVING CONFLICTS IN ENTERPRICES:

Feelings get hurt and at times relationships destroyed. It is no wonder many of us want to avoid conflict at
all cost. However, the most innovative solutions often arise out of conflict. The workplace is a dynamic
environment always in need of growth, change, solutions, transitions and upgrading. Conflict will be
regular part of our everyday work life. The more we expose ourselves to conflict the better we become
at handling it, and the more successful we become as business people.

1. Opens our eyes to new ideas. 

As thoughts are expressed back and forth we allow someone else to fine-tune the truth we are
communicating, as our perspective becomes further shaped against theirs. Conflict is incredibly useful as a
creative, fine-tuning instrument to our own ideas. In hearing another person’s perception it helps to
mold and clarify our own; either making us more clear and committed to our original position, or the
conflict will open our eyes to new perspectives on our ideas. Conflict is an effective vehicle for the
generation of new solutions, gaining trust and developing deeper agreements; all of which are great for
networking, bonding and the establishing successful connections.

2. Opportunity to verbalize needs.

Most people do not get what they want because they do not say what they want. Conflict provides an
opportunity to verbalize our needs to get them met. Who we are and what we stand for in the workplace
largely determines our levels of success. If the “wake” behind our boat is too big no one else has room to
get by, and if it is too small we get run over. There is a balance we must forge where we can take a
stand on issues without being too aggressive and also without being a complete pushover. Conflict,
confrontation and/or speaking up makes us more resilient and less fearful when asking for what is
needed.

3. Teaches flexibility.

If we are in conflict we are not only going to have others adjusting to us and our perspectives, but we
will also be adjusting to others and their perspectives. Humility and openness are two admirable
qualities to come from conflict. We have to discipline ourselves to not always have to be right. If we need
to be right we make another wrong, and we come to be viewed as disagreeable, controlling, fragile and
egotistical; none of which are qualities of a good leader. The more open and flexible we can be, the better a
reputation we develop for being fair and intelligent.

4. Teaches us to listen.

The key to any successful conflict resolution is the ability to listen. Most are so focused on litigation
they have zero ability to listen; their only desire is to win. Successful relationships and/or negotiations
cannot be forged with defensive, dominating people. Listening takes patience and the discipline to
control our impulses to speak. It takes being able to put ourselves and our thoughts to the side so we can
fully take another perspective in. To truly listen to someone, listening must be active, not passive. When
we listen we thrive amongst the elite in the business world. Listening gives us access to the information we
need to make smart and lucrative decisions.

5. Teaches us patterns of behavior.

As we engage in conflict we learn about how others work, their style of communication, and their
points of view. Knowing patterns helps us to be more effective in our relationships as they provide
some level of predictability. Predictability is effective when strategizing in negotiations. When we listen,
we get to know how people think and we gain insight into how they operate. This knowledge helps us
define and work within their patterns, allowing us to respect limits and to predict where and when we can
push without being offensive and still get the deal done. Knowing patterns makes us more prepared and
confident when dealing with any type of uncertainty or disagreement.

6. Leads to solutions.

When structures or agreements that are in place are no longer working, something new has to come into
play. Change is hard. It creates discomfort and we naturally want to hang on to what once worked even
when it’s clearly outdated and in need of upgrading. To be successful all things need to be in the process
being “in development.” For our businesses to grow the entire foundation of our businesses must be
consistently analyzed, discussed, negotiated and fine-tuned. Conflict is the backdoor to reinvention and
innovation.

7. Practice communication skills.

Communication is a skill that requires self-control, patience and intelligence. It requires that we be real and
authentic. If we back down from conflict we end up being disingenuous. We end up not communicating
our perspective out of some form of fear. Conflict is hard for everyone, yet the more we engage in conflict
the better a communicator we become. This is not to say we should go out and create conflict, but the
intention is not to be afraid to participate in conflict when it arises. Deal with it and be open to the
element of surprise.

8. Helps us to set limits.

People need to know where we start and they stop. Conflict is the perfect place to set limits and make
new agreements which fall in line with the respect and integrity of all involved. Without respect and
mutuality successful connections cannot develop or flourish. As we communicate needs and boundaries we
allow others to learn a great deal about us and how we work. We also learn a lot about ourselves, making
us that much more successful. Conflict teaches us when to back off and when to activate for ourselves
by asking someone else to back off.
9. Practice emotional control.

We do not have to be so emotional all the time. If we want to be taken seriously we must approach conflict
seriously. We must learn to remain calm and to use the least amount of words to get our point across,
all the while remaining firm and flexible when setting our way. Perseverance and self-control are the
keys to successful conflict resolutions. When we are in control of ourselves people can better relate to us,
count on us and trust our intentions.

10. Allows us to differentiate ourselves.

We can learn a great deal about who we are through the differences we have with other people. This is
called differentiation. Differentiation is our capacity to tell our truth and perspective as clearly as we see it,
all the while remaining engaged with those who believe differently from us. Conflict provides us the
opportunity to put a true representation of ourselves out in the world. Speaking the truth about
ourselves in the midst of disagreement is the foundation of emotional health and successful
communication. When we speak the truth about who we are and what we believe, everyone in the
conversation will absorb and respond to our information. This allows others to adjust. These adjustments
are the successes to come from conflict. The ultimate goal of conflict is resolution

INDUSTRIAL LAWS

The Factories Act,1948 (Act No. 63 of 1948), as amended by the Factories (Amendment) Act, 1987 (Act
20 of 1987)), serves to assist in formulating national policies in India with respect to occupational safety
and health in factories and docks in India. It deals with various problems concerning safety, health,
efficiency and well-being of the persons at work places.

The Act is administered by the Ministry of Labour and Employment in India through its Directorate
General Factory Advice Service & Labour Institutes (DGFASLI) and by the State Governments
through their factory inspectorates. DGFASLI advices the Central and State Governments on
administration of the Factories Act and coordinating the factory inspection services in the States.[1]

The Act is applicable to any factory whereon ten or more workers are working, or were working on
any day of the preceding twelve months, and in any part of which a manufacturing process is being
carried on with the aid of power, or is ordinarily so carried on, or whereon twenty or more workers are
working, or were working on any day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on without the aid of power, or is ordinarily so carried on; but this
does not include a mine, or a mobile unit belonging to the armed forces of the union, a railway running
shed or a hotel, restaurant or eating place.

The Workmen's Compensation Act 1897 was an Act of the Parliament of the United Kingdom which
dealt with the right of workers for compensation for personal injury. It replaced the Employers' Liability
Act 1880, which required the injured worker the right to sue the employer and put the burden of proof on
the employee. After 1897, injured employees had only to show that they had been injured on the job. [1]
These are roughly the same rights German workers were awarded in their 1884 law.[2] The Act was
replaced by an expanded scheme under the Workmen's Compensation Act 1906.

The Intellectual Property Act 2014 is an Act of the Parliament of the United Kingdom that received
Royal Assent on 14 May 2014 after being introduced on 9 May 2013. [1][3] The purpose of the legislation
was to update copyright law, in particular design and patent law. [4] The law arose as a result of the
Hargreaves Review of Intellectual Property and Growth.[4]

OVERVIEW OF FACTORIES ACT, 1948

Objective & Applicability

The Factories Act, 1948 has been enacted to consolidate and amend the law regulating the workers
working in the factories. It extends to whole of India and applies to every factory wherein 20 or more
workers are ordinary employed. Since the aim and object of the Act is to safeguard the interest of
workers and protect them from exploitation, the Act prescribes certain standards with regard to
safety, welfare and working hours of workers, apart from other provisions.

Factory

Means any premises including the precincts thereof where ten or more persons are working in any
manufacturing process being carried on with aid of power and where twenty or more workers are working
without the aid of power.

Health

 Every factory should be kept free from effluvia (unpleasant or harmful odour ) arising from any
drain, privy or other nuisance. {Section 11}
 Effective arrangements should be made in every factory for the treatment and effluents due to the
manufacturing process carried on therein, so as to render them innocuous, and for their disposal.
{Section12}
 Effective and suitable provisions should be made in every factory for securing and maintaining in
every workroom; adequate ventilation by the circulation of fresh air; and such as temperatures
will secure to workers therein reasonable conditions of comfort and prevent injury to health.
{Section 13}
 Effective measures should be taken to prevent inhalation of dust and fume that may produce in the
course of manufacturing process. {Section 14}
 In any factory where the humidity of air is artificially increased, the State Government may make
rules prescribing standards of humidification; regulating the methods used for artificially increasing
humidity of the air; and directing prescribed test for determining the humidity of the air to be
correctly carried out and recorded; and prescribing methods to be adopted for securing adequate
ventilation and cooling of the air in the workrooms. {Section 1S}
 No room in any factory should lie overcrowded to an extent injurious to the health of the workers
employed therein. {Section 16}
 In every part of a factory where workers are working or passing, there should be provided and
maintained sufficient and suitable lighting, natural or artificial, or both. {Section 17}
 In every factory effective arrangements should be made to provide and maintain at suitable points
conveniently’ situated for all workers employed therein a sufficient supply of wholesome drinking
water. {Section 18}
  In every factory sufficient wash rooms and accommodation of prescribed types should be provided
conveniently situated and accessible to workers, separately for male and female workers, at all
times while they are at the factory. {Section 19}
 In every factory there should be provided a sufficient number of spittoons in convenient places and
they shall be maintained in a clean and hygienic condition. {Section 20}

Safety
 The machinery in every factory should be properly fenced. {Section 21}
 Only the trained adult male worker, wearing tight fitting clothing which should be supplied by the
Occupier, should be allowed to work near the machinery in motion. {Section 22}
 No young person shall be employed on dangerous machinery, unless he is fully instructed as to the
danger arising in connection with the machine and the precautions to be observed and he has
received sufficient training in work at the machine. {Section 23}
 Suitable arrangements should be made to provide striking gear and devices for cutting off power in
case of emergencies. {Section 24}
 Sufficient precautions should be taken with regard to self-acting machines to avoid accidents.
{Section 25}
 To prevent danger, all machinery driven by power should be encased and effectively guarded.
{Section 26}
 Woman worker and children should not be employed in any part of the factory for pressing cotton
in which a cotton-opener is at work. {Section 27}
 Lifts in a factory should be periodically inspected by the Competent Person. {Section 28}
 Lifting Machines, Chains, Ropes and Lifting Tackles in a factory should be periodically inspected
by the Competent Person. {Section 29}
 Where process of grinding is carried on, a notice indicating the maximum safe working peripheral
speed of every grind-stone or abrasive wheel etc., should be fixed to the revolving machinery.
{Section 30}
 Where any plant or machinery or any part thereof is operated at a pressure above atmospheric
pressure, effective measures should be taken to ensure that the safe working pressure of such plant
of machinery or part is not exceeded.{Section 31}
 Floors, stairs and means of access should be soundly constructed and properly maintained. {Section
32}
 Pits, sumps opening in floor etc., should be either securely covered or fenced. {Section 33}
 No workman shall be employed in any factory to lift, carry or move any load so heavy as to be
likely to cause him injury. {Section 34}
 Necessary protective equipment should be provided to protect the eyes of the workman, where the
working involves risk of injury to the eyes. {Section 35}
 Suitable precautionary arrangements should be taken against dangerous fumes, gases etc. {Section
36}
 Every practicable measures should be taken to prevent any explosion where the manufacturing
process produces dust, gas, fume or vapour etc. {Section 37}
 Every practicable measures should be taken to prevent the outbreak of fire and its spread, both
internally and externally. {Section 38}
 The Inspector of Factories can ask the Occupier or the Manager of the Factory to furnish drawings,
specification etc., of any building, machinery or a plant, in case he feels that condition of such
building, machinery or the plant may likely to cause danger to human life. {Section 39}
 The Inspector of Factories can suggest suitable measures of steps to take by the Occupier or
Manager for implementation, when he feels the condition of any building, machinery or a plant may
likely to cause danger to human life. {Section 40}
 Wherein 1000 or more workmen are employed in a factory, the Occupier should appoint a Safety
Officer to look after the safety aspects of the factory. {Section 40-B}

Welfare

 Adequate and suitable ‘washing facilities’ should be provided in every factory. {Section 42}
  Provision should be made to provide suitable places for keeping clothing not worn during working
hours and for the drying of wet clothing.{Section 43}
 In every factory, suitable arrangements for sitting should be provided and maintained for all
workers obliged to work in a standing position, in order that they may take advantage of any
opportunities for rest which may occur in the course of their work.{Section 44}
 First-Aid Boxes with the prescribed contents should be provided and maintained so as to be readily
accessible during all working hours at the rate of at least one Box for every 150 workmen. {Section
45}
 In every factory wherein more than 500 workers are employed there should be provided and
maintained an Ambulance Room of the prescribed size, containing the prescribed equipment and in
the charge of such medical and nursing staff. {Section 45(4)}
 The Occupier should provide a canteen for the use of workers in every factory, where the number of
workmen employed is more than 250.{Section 46}
 In every factory wherein more than 150 workers are employed adequate and suitable shelters or rest
rooms and a suitable lunch room, with provision for drinking water, where workers can eat meals
brought by them, should be provided and maintained for the use of the workers. {Section 47}
 In every factory wherein more than 30 women workers are ordinarily employed there should be
provided and maintained a suitable room for the use of children under the age of six years of such
women. {Section 48}
 In every factory wherein more than 500 or more workers are employed, the Occupier should
employ in the factory such number of Welfare Officers as may be prescribed. {Section 49}

Working Hours of Adult Workers

 Ordinarily, a worker should not be allowed to work in a factory for more than 48 hours in any
week. {Section 51}
 The workman should have one holiday for a whole day in a week. Where he was asked to work on
his scheduled weekly holiday, he should be given compensatory holiday within three days of his
scheduled weekly holiday. {Section 52}
 After obtaining approval from the Inspector of Factories, the workman shall be allowed to avail the
compensatory holidays unavailed by him, within that month during which the compensatory
holidays are due or within two months immediately following that month. {Section 53}
 Subject to the provisions of Section 51 no worker should be allowed to work more than nine hours
in a day. {Section 54}
 The timings of work should be fixed in such a way that no worker should be required to work
continuously for more than five hours; and he should be allowed to avail an interval for rest of at
least half-an hour during his work in a day. {Section 55}
 The period of work of a workman should be so arranged that inclusive of his interval for rest under
Section 55 should not spread over more than ten and a half hours in any day. {Section 56}.

General Duties of the Occupier

Every Occupier should ensure, so far is reasonably practicable the health, safety and welfare of all workers
while they are at work in the factory.

Without prejudice to the generality of the provisions of sub-section (1), the matters to which such duty
extends, include –

 The provisions and maintenance of plant and systems of work in the factory that are safe and
without risks to health; .
 the arrangements in the factory for ensuring safety and absence of risks to health in connection with
the use, handling, storage and transport of articles and substance;
 the provision of such information, instruction, training and supervision as are necessary to
ensure .the health and safety of all workers at work;
  the maintenance of all places of work in the factory in a condition that is safe and without risks to
health and the provision and maintenance of such means of access to, and egress from, such places
as are safe and without such risks;
 the provision, maintenance or monitoring of such working environment in the factory for the
workers that is safe, without risks to health and adequate s regards facilities and arrangements for
their welfare at work.

c) Except in such cases as may be prescribed, every Occupier should prepare, and, so often as may be
appropriate, revise, a written statement of his general policy with respect to the health and safety of the
workers at work and the organization and arrangements for the time being in force for carrying out that
policy, and to bring the statement and any revision thereof to the notice of all the workers in such manner
as may be prescribed. {Section 7-A}

The Employees’ Compensation Act, 1923 (Old Name The Workmen’s Compensation Act, 1923)

The Employees’ Compensation Act, 1923 is an old but an important enactment, as it introduced a kind of
social security scheme for the employees of this country. It enables an employee, and in case of death of
an employee, his dependents, to get, at the cost of his employer compensation for employment injury.

Much later, in 1948, the Employees’ State Insurance Act, introduced a social insurance scheme for the
employees of his country. Unlike the earlier scheme this scheme rests on joint contribution by Government,
employers and employees. The two enactments together constituted what may be called a Code of social
security benefits for the workers of this country.

Objectives

The Object of the Act is to provide for the payment of compensation by certain employers to their
employees for injury caused to them by accident while in employment. If an employee contracts an
occupational disease while in employment, it is also treated under the Act as injury caused by accident.

Applicability

In case of Maharashtra, The Employees’ Compensation Act is applicable to all shops & Establishments by
virtue of Sec. 38-A of The Bombay Shops & Establishments.

Sec. 16 of the Apprentices Act extends the application of the Employees’ Compensation Act to the
Apprentices appointed under Apprentices Act, 1961 rendering the employers liable to pay compensation
for any personal injury or accident arising out of and in the course of employment caused to the
apprentices.

Every Employer

 Employing persons listed in Schedule II to the Act;

 Carrying on an occupation listed in Schedule III to the Act
 Is liable to pay compensation under the Act.

Eligibility

The following persons are liable to receive compensation under the Act:-

 Certain Railway Servants;

 Persons listed in schedule II to the Act,
 Persons employed in occupations listed in Schedule III to the Act.
 Injuries Compensated under the Act

  Under the Act injuries are broadly classified into four groups as those resulting in:
o Death,
o Permanent Total Disablement,
o Permanent partial disablement &
o Temporary disablement whether total or partial
 Contracted an occupational diseases.
 The Act provides for different scales of compensation for different kinds of injuries.

Conditions for Receiving Compensation

An employee to whom personal injury is caused by accident is entitled to receive compensation under the
Act if the accident arose out of and in the course of his employment. That means the accident must occur
while the employee is in employment and it must also be connected with his employment.

Circumstances in which the employer is not liable to pay compensation for injury to a workman:-

The employer is not liable to pay compensation for injury to an employee on following circumstances:-

 If the injury does not result in total or partial disablement of the employee for a period exceeding
three days;
 If the injury does not result in death of the employee and is caused by an accident which is directly
attributable to:-
 If an employee have been at the time thereof under the influence of drink or drugs
 The wilful removal or disregard by the employee of any safety guard or other device which he
knew to have been provided for the purpose of securing the safety of employee.

Amount of Compensation

When the injury to an employee results in his death, the amount of compensation payable to his dependents
is an amount equal to 50% of the monthly wages of the deceased employee multiplied by a figure ranging
from 228.54 to 99.37 (depending upon the age of the deceased employee) or an amount of` 1,20,000,
whichever is more. However, if the monthly wages of the deceased employee exceed` 8000/-, his monthly
wages for the purpose of calculating the compensation shall be deemed to be ` 8,000/- only (w.e.f. 31st
May 2010)

Note:- By Amendment Act of 2000 the minimum amount of compensation for death is enhanced from `
50,000/- to ` 80,000/- and the deemed maximum monthly wage of the deceased employee is enhanced from
` 2,000/- to` 4,000/-

Amount of Compensation Received in case of permanent total disablement

When the injury of an employee results in his permanent total disablement, the amount of compensation he
is entitled to receive is an amount equal to 60% of the monthly wages of the injured employee multiplied
by a figure ranging from 228.54 to 99.37 (depending upon the age of the injured person) or an amount of `
1,40,000/- whichever is more. However, if the monthly wages of the injured employee exceed ` 8000, his
monthly wages for the purpose of calculating the compensation shall be deemed to be ` 8,000/- only.

When the injury of an employee results in his permanent partial disablement, the amount of compensation
he is entitled to receive is a percentage of the compensation payable in the case of permanent total
disablement. The percentage is determined with reference to the extent of loss of earning capacity caused
by the injury and is a lumpsum payment.

In case of temporary Disablement

When the injury of an employee results in his temporary total disablement or temporary partial disablement
he is entitled to receive compensation in the form of a half-monthly payment. The amount of a half-
monthly payment is determined with reference to the monthly wages the employee was drawing at the time
of the injury and is equal to 25% of the monthly wages of the employee. The maximum period during
which the employee can receive compensation for temporary total disablement or temporary partial
disablement is five years.

In case of Fatal Accidents

Payment of compensation in respect of employee whose injury has resulted in death is not to be made
directly to the dependents of the employee. In such case the employers is required to deposit the amount of
compensation with the Commissioner for Employee’s Compensation. The Commissioner will then
apportion the amount among the dependents of the employee.

Note:- It is held that the payment of compensation directly to a dependent is not legal even if he is the only
One dependent of the deceased employee claiming compensation.

Claims for Compensation

The procedure for claiming compensation payable under the Act may be summarized as follows:-

 An application for claiming compensation payable under the act has to be made to the
Commissioner for Employee’s Compensation in the prescribed form.
 Before filing the application the Employee has to give notice of the accident to the employer
containing the details of the accident.
 Before filing the application the Employee has also to submit himself for medical examination if he
is required to do so by the employer
 The application has to be made within 2 years of the occurrence of the accident or within 2 years
from the date of death.
 If any applicant is poor, the Commissioner may exempt him from paying the application fees.

 The Commissioner can take the assistance of any person possessing special knowledge of any
matter relating to the case for deciding the application.
 The Commissioner can recover the amount payable by any person under the Act as an arrear of land
revenue.

Intellectual Property Rights in India

Intellectual Property Rights are legal rights governing the use of creations of the human mind. The
recognition and protection of these rights is of recent origin. Patents, designs and trademarks are
considered as industrial property. As per International Convention for the protection of industrial (Paris
Convention) the protection of industrial property has its object patents, utility models, industrial
designs, trademarks, service marks, trade names, indications of source or appellations or origin and
the repression of unfair competition when copyrights, Geographical indicators, layout Designs and
confidential information were included to industrial property, they all become intellectual property.

With the trade related Aspects of Intellectual Property Rights (TRIPS) Agreement of World Trade
Organisation (WTO), the intellectual property rights attained the authority to enforce the law
internationally.
According to TRIPS, the intellectual property rights are:

1) Copyright and Related Rights

a) Rights of artists, painters, musicians sculptors, photographers, and authors for copyright
in their works;
b) Rights of computer programmes whether in source or object code for a copyright in their
programmes and compilation data;
c) Rights of performers producers of phonogram’s and broadcasting organizations in respect
of fixation on their programmes for copyright in their work.
2) Right of traders in their trade marks.
3) Right of manufacturers & producers on geographical indication in relation to such products and produce.
4) Right of designers for their distinctive design striking to the eye.
5) Patents:
a) Right of the inventor for patent is his invention.
b) Rights of plant breeders and farmers.
c) Rights of biological diversity.
6) Right of computer technologist for their layout design of integrated circuits.
7) Right of businessmen for protection of their undisclosed information on technology and
management.

Advantages of Intellectual Property Rights

Intellectual property rights are advantageous in the following ways −

 Provides exclusive rights to the creators or inventors.

 Encourages individuals to distribute and share information and data instead of keeping it
confidential.
 Provides legal defense and offers the creators the incentive of their work.
 Helps in social and financial development.

Intellectual Property Rights in India

To protect the intellectual property rights in the Indian territory, India has defined the formation of
constitutional, administrative and jurisdictive outline whether they imply the copyright, patent, trademark,
industrial designs, or any other parts of the intellectual property rights.

Back in the year 1999, the government passed an important legislation based on international practices to
safeguard the intellectual property rights. Let us have a glimpse of the same −

 The Patents (Amendment) Act, 1999, facilitates the establishment of the mail box system for filing
patents. It offers exclusive marketing rights for a time period of five years.
 The Trade Marks Bill, 1999, replaced the Trade and Merchandise Marks Act, 1958
 The Copyright (Amendment) Act, 1999, was signed by the President of India.
 The sui generis legislation was approved and named as the Geographical Indications of Goods
(Registration and Protection) Bill, 1999.
 The Industrial Designs Bill, 1999, replaced the Designs Act, 1911.
 The Patents (Second Amendment) Bill, 1999, for further amending the Patents Act of 1970 in
compliance with the TRIPS.

Intellectual Property in Cyber Space

Every new invention in the field of technology experiences a variety of threats. Internet is one such threat,
which has captured the physical marketplace and have converted it into a virtual marketplace.
To safeguard the business interest, it is vital to create an effective property management and protection
mechanism keeping in mind the considerable amount of business and commerce taking place in the Cyber
Space.