Friday, July 20, 2012

The Menace of Sexual Harassment will be a Tough Challenge

With The Government having failed to check cases of Sexual Harassment in Public Offices, ensuring The Impact of a new law Addressing The Menace of Sexual Harassment will be a Tough Challenge.

While the government often tends to largely attribute the rise in cases of harassment of women at workplaces to the private sector, a closer look unveils a number of similar cases in ministries, departments and public sector undertakings. What is worrisome is that cases involve officials at the absolute helm of affairs which is often seen as the true portrayal of the misuse and abuse of power within the ambit of maximum government control.

Recent studies reveal that sexual harassment is still prevalent, hidden or disguised, and exists in all kinds of offices, – be it the government sector or private. A look at some of the major cases within the Government’s spectrum where the existing guidelines have been found to have been flouted with utter disregard reveals the government’s failure in controlling the menace. Rupen Deol Bajaj, a senior IAS official, was slapped on her posterior by K. P. S.Gill, former Chief of Police, Punjab, at a dinner party in July, 1988. Bajaj filed a suit against him, despite the public opinion that she was blowing it out of proportion, along with the attempts by all the senior officials of the state to suppress the matter. Almost 10 years later, her efforts were rewarded when the Supreme Court fined Gill Rs.250,000 in lieu of three months of rigorous imprisonment handed to him under Sections 294 and 509 of the Indian Penal Code (IPC). The most notable feature of the subsequent trial was the complete unwillingness of witnesses on either side to provide reliable or accurate testimony. Most of the guests at the party were senior bureaucrats and officials.

In 2004, in a first ever incident of its kind, the Government found C. Venkataramana, Chairman and Managing Director of the state-run National Aluminium Company Ltd. (NALCO), guilty of sexual harassment and terminated his services. The case had hit headlines in February 2003, when a senior NALCO executive complained that Venkataramana had tried to sexually harass her. The incident took place in Mumbai when the woman met Venkataramana for her promotion, which had been pending for several years. The CMD is said to have invited the woman to a hotel, where he offered her drinks and later tried to molest her. The woman, however, somehow managed to escape. Following the furore over the incident, NALCO hurriedly conducted an internal probe – and predictably gave a clean chit to Venkataramana. However, the government took serious note of the development and constituted a committee, as prescribed by the Supreme Court in cases of sexual harassment, and the culprit was brought to book.

Another case is that of N Radhabai vs. D. Ramchandran. When Radhabai, Secretary to former minister D. Ramchandran, protested against the minister’s abuse of girls in welfare institutions, Ramachandran allegedly attempted to molest her and later dismissed her from service. Radhabai approached the SC, which in 1995, passed the judgment in her favour, and also ordered the department to pay her salary arrears and perks from the date of dismissal.

In August 2008, a RAW official tried to kill herself outside the Prime Minister’s Office after complaining of unnecessary delays in case of sexual harassment she had filed against her seniors. Nisha Priya Bhatia had accused her seniors of molesting her while she was on duty. The case is still pending. After having diligently served for 15 years as an official in the personnel department of a rural bank in Madhya Pradesh, Seema Sharma suddenly found herself flooded with memos and subsequent transfer orders after she resisted sexual advances from her new boss.

While incidents involving the high-ups in power does highlight the fact that it is prevalent but rarely out in the open, not much has changed for women at the workplace, says Delhi-based advocate Dheeraj Malhotra. “Women are forced to approach social organisations and courts as they fail to get justice in their own offices. This, despite the fact that the Apex court has underlined that sexual harassment at the workplace is not only personal injury to the victim, but also a violation of fundamental rights,” he adds.

It is true that the silence of the victims gives strength to the greatest human rights violators in India, and reporting such incidents are important to bring about the change required. But then, it is also pertinent to note that many cases go unreported as they also threaten to ruin the womens’ dignity. “The society itself would ensure that she cannot live a peaceful and dignified life. Here the fear of the society plays the greatest player who rips off the victim’s right,” says Pune-based human rights activist Alka Joshi, calling for drastic changes in societal beliefs. “When one such victim in Maharashtra decided to pursue her complaint, many of her senior colleagues told her that her experience was nothing extraordinary, and that pushing it would not harm the men but only give her a bad name. Unfortunately, even senior women officers advised her to give up, and she eventually did,” she observes, adding, “Even when complaints do come up, the attitude of authorities have been found to be crude, dismissive and insensitive in many cases”.

The most recent example is the case of Komal Singh, an air-hostess with Air India, who suffered a major setback in a sexual molestation case after the National Commission for Women chose to tread a safe path by coming out with a report that confirmed “assault”, but did not take a stand on whether the employee had been sexually molested by the pilots in the cockpit of a Sharjah-Lucknow-Delhi flight on October 3, 2009 or not. In an affidavit filed later by Komal, she went on to state that she was being pressurised by certain members of the NCW to withdraw her complaint, and that even her version of events was being ‘doctored’. The NCW finally stated that the air hostess had not been molested, but only pushed during a mid-air scuffle.

Sexual harassment has for long been recognised as the most intimidating form of violence in many developed countries where they have not only taken note of how degrading the experiences of sexual harassment can be for women as well as employers, they have also adapted legislative measures to combat sexual harassment. The point is that combating the issue of sexual harassment involves developing an understanding and requires a change of attitude in all employees, colleagues, friends, administrators, employers and the law makers. Even if it was recognised late in India, it cannot be an excuse to allow it to flourish to an extent that it becomes unnoticeable. As the world celebrates the liberalisation of women, in India, the real challenge for the Act will be to effectively address deeper issues which generally never come to fore. 


Thursday, July 19, 2012

Cellular Phones will necessarily Cause Cancer! How Pathetic that no Government has The Guts to call a Spade a Spade and Take Action

Now, which part of all this is not understandable? To the World Health Organization, perhaps all. The WHO, which has ambivalently maintained that there is no proven connection between cancer and mobile phone usage, commented again in the Children‘s Environmental Health International Initiatives December 2010 newsletter, “We need to get to the bottom of what mobile phones do to our health. The scientific jury is still out on whether those powerful micro-waves may be causing long-term damage. Thousands of studies have already been published on the subject, especially into the links between brain cancer and radiation. Yet, the vast majority have proved inconclusive. The effects are as unclear as a decade ago. But one fact is indisputable. Brain cancer is on the rise among 20- to 29-year-olds.” That is in all probability the most shameful of statements that a global health organization, whose reports are followed by various countries, could give.

It’s sad that not many countries, if any, are following the Austrian mobile phone warning system (where the advice is that “mobiles should only be used briefly during urgent need, and by children, only in extreme emergencies.”). It’s worse that companies like MSNBC are proudly promoting mobile phones for children (‘Best cell phones for children’; featuring Disney Mobile, Verizon Migo, Tictalk and more) on their website.

By the time governments realise the gravity of the situation, it may well be too late. This is the time that governments across the world should come out and firstly – akin to tobacco products – ban the usage of cellular phones by children, and secondly force the cellular phone companies to print statutory health warnings on cellular phone handsets. That is the most logical step forward in today’s times of instant connectivity.



Wednesday, July 18, 2012

Big Metal reaches Turning Point

Over the last two years, India has become a net Importer of Steel. As steel makers respond with Brownfield and Greenfield capacity addition Plans and a Slew of asset Acquisition Strategies, B&E analyses what These Players are Exactly up Against!

“Today, the Indian steel sector is at a critical point of its journey. During the current financial year, steel demand has increased by 8%, whereas production has only increased by 3%. This is widening the demand-supply gap, making this country more dependent on exports.”

The above words by our Honourable Steel Minister, Virbhadra Singh (at the 3rd Summit for Mining to Steelmaking) who also spoke exclusively to Business & Economy, underlines the sense of alarm that is building up in the Indian steel industry as well as within our policy makers over the last couple of years. After all, steel is one of the last additions India would expect or welcome in its ballooning import basket. But if the demand-supply gap continues growing as it is doing currently, and if greenfield capacities continue being hit by various issues, one wonders whether this will turn out to be an eventuality or something we could hope to avoid.

From 2008, India has turned a net importer of steel, as per figures released by the Steel Scenario Year Book 2009; and the import bill continues to grow, with imports expected to touch around 6 million tonnes in FY 2010. As a nation, India continues to have a very low per capita consumption of steel (45 kg), but the scenario is changing very fast. Kameshwara Rao, Executive Director – Energy, Utilities, and Mining, PricewaterhouseCoopers, tells B&E, “A strong demand driver is urbanisation, where India is presently a low 28% but this is expected to rise to 41% by 2030. Thus, even with the brown-field and greenfield capacity addition of 35 and 25 million tonnes respectively; we may fall short of the domestic demand.”

Indeed, the scenario does ignite a sense of concern, but it has to be viewed in the right perspective. First things first, we have a short term correction in place to the gap. A. S. Firoz, Chief Economist, Joint Planning Committee, Ministry of Steel, assures B&E that it is not a huge short term scenario, “By 2016-17, India will run into a shortage phase, especially if greenfield capacity developments don’t take place, depending on what kind of growth we experience.”

But in the interim, the major players are going for massive brownfield capacity expansion led by SAIL, which plans to expand its crude steel capacity from 13.4 million tonnes (MT) currently to 24.6 MT (21.4 MT by 2012) and its saleable steel capacity from 12.5 MT currently to 23.1 MT (20.2 MT by 2012) with investments of $8 billion. In all, these expansions are expected to create additional capacity of 33 MT, which would actually give us a surplus situation in 2012-13. This would again put downward pressure on price; and could potentially make India a net exporter once again, according to the latest Fitch Ratings report.

The worry, as Ministry of Steel’s A. S. Firoz points out, comes later in the next decade, when the demand again grows fast enough to outstrip supply. It is here that we talk about the problems we are facing regarding implementation of greenfield projects like Posco and Arcelor Mittal; where issues of environment and rehabilitation have cropped up recently. Vikram Amin, Executive Director, Essar Steel, points out to B&E, “There should be a clear policy on land acquisition to ensure this does not become a hindrance in project implementation.”

Every delay is increasing the cost of the projects and also deterring potential investors from participating in the India growth story. This is true generally for India’s infrastructure scenario. McKinsey estimates that the shortfall in achieving infrastructure development targets (of which steel projects form a significant part) in the 11th and 12th five year plan periods could cost India Inc. a whopping $200 billion by 2017, which at $500 billion is nearly 10% of GDP and a huge 40% of the 11th year plan expenditure.

The other – more critical – perspective in this regard is with respect to raw material, particularly iron ore availability. The Steel Minister has called for “proactive action by all Indian steel companies to have a secure raw material base.” In fact, most steel players lament the anomaly that India is importing steel on one hand and exporting iron ore on the other; whereas the onus should be on value addition in exports. India exports over 100 million tonnes of iron ore and imports over 6 million tonnes of steel.

Yet, one could argue that the two businesses have grown separately. When SAIL and Tata Steel came in, they had captive mines. And when Ispat entered the market, they worked on a contract with NMDC. As more Indian companies embarked on building steel capacities, scant focus was given to having captive mines or acquiring iron ore assets. That is why, the iron ore business started primarily as an export business.

But now, as access to iron ore has increasingly begun to define competitiveness and iron ore (being benchmarked on global spot prices) and coking coal price fluctuations are hitting bottomlines, players are increasingly considering it a key issue, with all players looking overseas for assets. Global giants BHP Billiton and Rio Tinto are currently pushing steel makers to accept a 100% hike in iron ore prices, or face the spot market, as demand from China grows faster than expected. Forward iron ore swaps are trading at around $117 a tonne for 2010 on CIF basis (China), versus last year’s $60 FOB. Even by a conservative estimate, prices are expected to rise by at least 40%. Fitch expects that even coking coal prices will be at least 30-50% higher yoy.


3G in India is clearly too expensive on a rational and logical basis

The impact of the prices paid in India will result in an increase of capital employed for Idea, Bharti and Reliance of roughly 3.0%, 3.4% and 10.4% compared to the 255% increase for Vodafone. The immediate impact on the ROCE is to reduce the returns in the range of 0.2% to 0.9% which is relatively benign compared to the damage inflicted in the UK. Furthermore, unlike the UK, the Indian operators will be able to deploy their networks more cheaply and achieve greater performance by jumping to 3.5G in the form of HSPA. The spectrum will be used immediately to relieve congestion on the 2G voice networks and India will quickly emerge as the centre of innovation for low cost smart phones, applications and new mobile business models. The auction winners will not have to wait 10 years before they can start earning a return. Indian 3G prices for Mumbai, Delhli and Kolkata were certainly high and above expectations but they were not anywhere near as exuberant as those of the UK or Germany.

As regards the business case for the 3G spectrum, the 3G spectrum in India is both about voice and mobile broadband. Accessing the Internet from handsets i.e. the small screen will be a much bigger phenomena in emerging markets compared to developed countries. This is already apparent in some markets such as Egypt, Morocco and the Philippines. What matters now in India is not how much was paid for 3G spectrum, and as a classic “sunk cost” it should have little bearing on future decision making, but how quickly can a more rational market structure be established. Greater certainty over the future regulatory environment, including 2G spectrum pricing, along with consolidation and an end to the brutal price war will have a far more pervasive impact on future returns than the prices paid for 3G spectrum.


Tuesday, February 28, 2012

Still taking India home

In 1983, its competitors were the outdated Ambassadors and Padminis. Now it competes with the likes of EON, U-VA, Figo and Micra. Tomorrow, it may well compete with the Mercs and the Beamers (who knows?). 4Ps B&M documents the brand journey of Maruti Suzuki in India

Since 1991, India has moved on from being a market that most MNCs considered untouchable to one that has become inevitable for most of them. Although a number of the first movers have felt the heat, a precious few have also been amply rewarded.

Maruti Suzuki is one instance you just can’t miss, and as predicted, it is also the #1 MNC in India in revenues, boasting annual sales of around Rs.362.99 billion with profits of over Rs.46.84 billion (FY2010-11). While names like Nokia and Vodafone are relatively close followers with annual sales of Rs.230 billion and Rs.220 billion respectively, the fact of the matter is that Maruti has been able to dominate the hearts and minds of Indian consumers over the past 28 years despite the competition growing by leaps and bounds. However, the journey has not been easy by any means. 4Ps B&M brings to you how the brand has evolved in the country and what makes Maruti Suzuki big enough to be an unbeatable force in the Indian market.

Small is beautiful
Soon after the Maruti 800 paved its way onto the Indian turf, the price-conscious Indian consumer was instantly enamoured by its value proposition. When pitched against the bulky Ambassadors and the Padminis, it was light in weight. As compared to its gas-guzzling counterparts, it was fuel-efficient. In the era of obsolete technology, it was a performance-driven marvel. And for Indians deprived of excitement and innovation, it was a dream come true from the technology leaders, i.e. the Japanese themselves.

Little wonder then that it turned out to be an outstanding start for this Sanjay Gandhi brainchild, but there was much more to come. Just a few years after Harpal Singh, an ex-Air India employee got the keys of the first Maruti 800 from the-then Prime Minister Indira Gandhi in 1983, Maruti Suzuki realised how marketing could be a critical driver of its success in the automobile industry. “The pre-Maruti era definitely belonged to Ambassadors and Padminis but the technology & price point of Maruti 800 revolutionised the way the business of automotives was done in India,” admits a former employee of Hindustan Motors.

The first campaign from its stable was done by Hindustan Thompson (now JWT) in 1989 for the Omni, which aimed at positioning the car as a passenger vehicle. The company found that the looks and size of the product were giving it a rather commercial appeal. While the campaign, which was shot in the factory premises in Gurgaon, featuring the renowned model Malvika Tiwari, it focused only on the print media. Even then, many in the industry opposed the idea of a marketing campaign; citing it as an unnecessary effort, since there was no practical competitor for the company in the industry. However, Maruti was fully convinced about the potential of the product and didn’t want to take any chance with the same. “It did help in changing the positioning (though partially). Our research shows that 44% of Omni users still use the product for dual purposes (both commercial and personal) while the rest of them are using it for personal purpose,” comments Shashank Srivastava, Chief General Manager – Marketing, Maruti Suzuki India.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2011.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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