Technical services: - services rendered to the client/customer, based on available knowledge, expertise, skills, infrastructure and facilities of the lab. It includes:
4)fabrication, production and supply of special products of R&D
5)repair & maintenance
6)providing information
Financial aspects: -
(1) Expenses on the following factors (except for supply of information/ database):
A) Cost of
(a) Deployed CSIR staff mandays as per CSIR prescribes rate and
(b) Temporary staff deployed at actual cost + 40 % OH
B) Cost of consumable raw materials/consumable (chemicals, glassware, stationary, raw materials, component & other store items) with 25% OH (towards expenses for purchase, storage, handling etc.
C) Cost of consumable raw materials/consumable with 25% OH (toward expenses for purchase, storage, handling etc.)
Chennai, Nov 5: Asserting that an employer cannot dictate the type of material to be used for uniform, the Madras High Court today set aside a order by the Chennai Airport directing a woman employee to use only the dress prescribed by the Airports Authority while on duty. Allowing a writ petition by a senior Office Assistant S Kasthuri in 1999, who used khadi/handloom material instead of silk while maintaining the colour prescribed by the airport, Justice K Chandru said the airport had the power to prescribe a uniform and even indicate the colour and shade of material one should wear but it cannot not dictate on the type of linen.
Silk and synthetic material prescribed were neither suited to our country nor did it reflect the ethos of the independence movement, he said.
"Rather than appreciating the principle stand taken by the petitioner, it is unthinkable that the respondent should come up with an unjustified reference to a so-called service regulation," the Judge said, adding that Article 51 A (b) of the Constitution clearly stipulated that a citizen of the Union had a duty to cherish and follow the noble ideals which inspired the freedom struggle.
He directed the Chennai Airport to pay Kasthuri Rs 5,000 as costs.
Kasthuri was appointed as a junior clerk in 1973 in the office of Director General of Civil Aviation. In 1989, she was made an employee of AAI and subsequently redesignated as senior office assistant. Since 1994 the employees were made to wear silk or polyster sarees. The petitioner who used khadi/ handloom cotton dresses and khadi chappals was told in August 1996 to attend office in the prescribed uniform.
Kasthuri, inspired by life and principles of Mahatma Gandhi right from her childhood, contended that she neither collected her uniform sarees nor claimed any allowance in lieu of it. - Agencies
The Supreme Court on Friday said that it is the prerogative of the government to implement revised pay scale for employees. There is no legal right vested in employees to claim implementation of revised pay scale, the apex court said.
“The question as to whether the scale of pay would be revised or not is a matter of policy decision for the state. No legal right exists in a person to get a revised pay scale implemented. It may be recommended by a body but ultimately it has to be accepted by the employer or by the state that bears the financial burden,” a bench comprising Justice S B Sinha and Justice Cyriac Joseph said.
The court dismissed the appeal of an employee who had resigned from the service of a PSU but claimed arrears which accrued due to the retrospective implementation of the revised pay scale by the government. The appellant, Mr A K Chandrashekar, was employed as finance director in an PSU of the Kerala government. He had resigned from service on May 23, 1995.
Subsequently, the Government of India issued an office memorandum (OM), on July 19, 1995, revising scales of pay for `executives holding board level posts’ with effect from January 1, 1992. In January, 1996, the appellant made a representation requesting payment of arrears on the ground that he was in service on January 1, 1992, and was entitled to the benefit of the OM of 1995.
It was, however, rejected by the state government. It had said that the OM of 1995 issued by the secretary to the Government of India directing the revision of scales of pay of scheduled posts effective from Jan 1, 1992, specifically contains a clause that all the administrative ministries/ departments are required to issue presidential directives to the concerned public sector enterprises under its administrative control to give effect to the revision.
The industries department of the BPE of Kerala government has not issued any specific directive to the PSU for making the revision effective. “Hence, we are unable to consider your request,” the government said. Another representation of the appellant drew a similar fate. The appellant then approached the Kerala high court. The HC had dismissed the plea of the appellant.
Ministry of Finance vide OM Dated 24/10/2008 notified interim eligibility criteria (Before recommendation in line of 6th CPC are accepted) for interest bearing Advance as follows
(1) Motor Car (including PC):- Pay in pay band of Rs 19530 or more
(2) Motorcycle Advance :- Pay in pay band of Rs 8650 or more
The quantum of advance would be determined with reference to pay in the pay band and existing ceiling would remain unchanged
Advance for purchase of Cycle & warm clothing are to be treated as Non-interest bearing Advance.
The expression 'unfair trade practice' is one which is elaborately defined in the Consumer Protection Act and the Monopolies and Restrictive Trade Practices Act. However, much of the litigation in both forums centres around it. When the MRTP Commission fades away, this phrase will remain only in the consumer law. The Competition Act, which is yet to be implemented in full, does not deal with UTP directly. Despite the detailed definition, it divided two judges of the Supreme Court in a recent appeal against a judgment on the MRTP commission. In another decision, the commission itself confused UTP with 'deficiency in service.' First, the differences in the Supreme Court over the applicability of the definition. In Philips Medical Systems (Cleveland) Inc vs Indian MRI Diagnostic & Research Ltd, the Indian firm ordered a whole body CT scanner from the manufacturer in the US. The US corporation required licences from the respective governments which did not come in time. Therefore the offer lapsed and the deal fell through. Fresh negotiations began between the firms, but it was apparently for a refurbished machine at a higher price. Following differences, the Indian firm called off the talks and imported a similar scanner from Japan. The Indian firm also moved the commission alleging 'restrictive trade practice' by the US firm pleading losses and seeking compensation. The commission held the US firm guilty of both unfair and restrictive trade practices and awarded compensation. Therefore, the US firm appealed to the Supreme Court where it succeeded in setting aside the commission's order. Though both the judges in the Supreme Court agreed on quashing the commission's order, they could not agree on the interpretation of the UTP. How can there be a UTP when there was no supply of goods at all, one judge asked. The original MRTP Act did not contain the phrase UTP. The law was aimed against restrictive and monopolistic practices only. The assumption was that if the manufacturers, producers or dealers could be prevented from distorting competition, the consumer would automatically get a fair deal. This was not to be. Therefore, the concept of UTP was introduced in 1984 through an amendment. According to this judge, the amendment was meant to protect consumers against false and misleading ads and defective goods, among other things. It was not meant to deal with a situation where goods are not sold at all, as in this case. The definition of UTP was further amended in 1991, but still this sort of situation was not covered by the change. The other judge felt that the phrase should be liberally interpreted. He said: 'There may be situations where a promise to supply a particular good, which the supplier knew that he was in no position to supply, with a motive of promoting of some other model, could occur. In such a case, a customer may be forced to obtain the same material from some other party and suffer losses in the process. Even without actual sale of goods, such an act on the part of the supplier could also amount to UTP.' Normally such differences in the Supreme Court are resolved by referring them to a larger bench, but in this case the disagreement was left as it is, perhaps because the commission itself is on its last legs. However, since the definition of UTP in the Consumer Protection Act is identical to that of the MRTP Act, the problem is bound to be brought back to the Supreme Court soon by consumer activists and lawyers. The Competition Act does not define UTP itself, but only 'trade practice.' Moreover, the proposed Competition Commission is enjoined to carry on with part of the cases pending before the MRTP commission. The commission set up under it also has the duty to 'eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade carried on by other participants.' Therefore, there should be more clarity in the interpretation of UTP. The confusion now prevailing can be gauged from another judgment of the MRTP commission in the judgment, KLM Royal Dutch Airlines vs Director General, delivered last month. Some consignments of badges and crests sent for a tournament in New Orleans, US, did not reach before the event, raising a claim for damages for 'deficiency in service.' Courtesy :- Business Standard
Dopt vide OM No 17011/8/07-Estt.(Allowance)Dated 27/10/2008 modified the rate of Honorarium to be paid to Government servants appointed to act as Arbitrator in disputes between the Government of India and private parties or between private parties as under
"the honorarium may be paid to him at the rate of Rs.500/- per day or Rs.250/- per half-day subject to a maximum of Rs.10,OOO/-per case. For this purpose a day means more than two hours continuous work on any date and half-day means work for two hours or less. He shall record a certificate in writing indicating whether he has done a day's work or a half-day's work on a particular day."
The principles underlying continuing wrongs and recurring/ successive wrongs have been applied to service law disputes. A `continuing wrong' refers to a single wrongful act which causes a continuing injury. `Recurring/successive wrongs' are those which occur periodically, each wrong giving rise to a distinct and separate cause of action. Supreme Court in Balakrishna S.P. Waghmare vs. Shree Dhyaneshwar Maharaj Sansthan -[AIR 1959 SC 798], explained the concept of continuing wrong (in the context of section 23 of Limitation Act, 1908 corresponding to section 22 of Limitation Act, 1963) :
"It is the very essence of a continuing wrong that it is an act which creates a continuing source of injury and renders the doer of the act responsible and liable for the continuance of the said injury. If the wrongful act causes an injury which is complete, there is no continuing wrong even though the damage resulting from the act may continue. If, however, a wrongful act is of such a character that the injury caused by it itself continues, then the act constitutes a continuing wrong. In this connection, it is necessary to draw a distinction between the injury caused by the wrongful act and what may be described as the effect of the said injury."
In M. R. Gupta vs. Union of India [1995 (5) SCC 628], the appellant approached the High Court in 1989 with a grievance in regard to his initial pay fixation with effect from 1.8.1978. The claim was rejected as it was raised after 11 years. This Court applied the principles of continuing wrong and recurring wrongs and reversed the decision. This Court held :
"The appellant's grievance that his pay fixation was not in accordance with the rules, was the assertion of a continuing wrong against him which gave rise to a recurring cause of action each time he was paid a salary which was not computed in accordance with the rules. So long as the appellant is in service, a fresh cause of action arises every month when he is paid his monthly salary on the basis of a wrong computation made contrary to rules. It is no doubt true that if the appellant's claim is found correct on merits, he would be entitled to be paid according to the properly fixed pay scale in the future and the question of limitation would arise for recovery of the arrears for the past period. In other words, the appellant's claim, if any, for recovery of arrears calculated on the basis of difference in the pay which has become time barred would not be recoverable, but he would be entitled to proper fixation of his pay in accordance with rules and to cessation of a continuing wrong if on merits his claim is justified. Similarly, any other consequential relief claimed by him, such as, promotion etc., would also be subject to the defence of laches etc. to disentitle him to those reliefs. The pay fixation can be made only on the basis of the situation existing on 1.8.1978 without taking into account any other consequential relief which may be barred by his laches and the bar of limitation. It is to this limited extent of proper pay fixation, the application cannot be treated as time barred........."
To summarise, normally, a belated service related claim will be rejected on the ground of delay and laches (where remedy is sought by filing a writ petition) or limitation (where remedy is sought by an application to the Administrative Tribunal). One of the exceptions to the said rule is cases relating to a continuing wrong. Where a service related claim is based on a continuing wrong, relief can be granted even if there is a long delay in seeking remedy, with reference to the date on which the continuing wrong commenced, if such continuing wrong creates a continuing source of injury. But there is an exception to the exception. If the grievance is in respect of any order or administrative decision which related to or affected several others also, and if the re-opening of the issue would affect the settled rights of third parties, then the claim will not be entertained. For example, if the issue relates to payment or re-fixation of pay or pension, relief may be granted in spite of delay as it does not affect the rights of third parties. But if the claim involved issues relating to seniority or promotion etc., affecting others, delay would render the claim stale and doctrine of laches/limitation will be applied. In so far as the consequential relief of recovery of arrears for a past period, the principles relating to recurring/successive wrongs will apply. As a consequence, High Courts will restrict the consequential relief relating to arrears normally to a period of three years prior to the date of filing of the writ petition.
Kb: - Includes readily available and commercial knowhow, process and/or process improvements, technology, technique and a new product. May or may not embody IP.
-unencumbered or encumbered
Licensing of Kb: - granting licensee the right to use the Kb for making or selling the resulting product(s) either for commercial/ captive purpose or as otherwise agreed to.
Financial aspects: - varies on case to case basis on the following factors:
(a)Cost of Development:-
(1) Direct input:-
(i)cost of
(a) Deployed CSIR staff mandays as per CSIR prescribes rate and
(b) Temporary staff deployed at actual cost + 40 % OH
(ii)Cost of consumable raw materials/consumable/ physical inputs/services/utilitieswith 25% OH (toward
expenses for purchase, storage, handling etc.
(iii)equipment usage cost/ cost of equipment procured specially for the projects :-
(a) Existing one to be charged on pro-rata based on as annual usage charges upto 20% of cost of equipment and installation. Where cost cannot be ascertained the charges are to be decided by CA.
(b) New equipment is to be charge with an additional procurement and handling charges of 5% of the cost of the equipment.
(iv)Contingencies including external payment for facilities/services
(v)Cost of Securing of IP right for Kb; and
(vi)Cost of publicity
(2) Indirect inputs:-
(a) Notional amortization of investment on the staff, equipment, facilities deployed for the projects; and
(d) Size & number of potential clients: - based on exclusiveness of license and alternative competing sources.
(e) Comparative cost of competing Kb in the market (if applicable)
(f) Potential for unauthorized use of the specific Kb subjected to; (by piracy or otherwise)
(g) Opportunity value: - estimated amount that can be realized by cashing upon the circumstantial/ contingent aspect prompting the utilization of Kb by the licensee. (Expressed in terms of absolute money value or as a % of profits anticipated or of value addition envisaged.)
Differential costing:-
- Cottage/tiny industry
On token lumpsum charges even below the cost incurred on development of Kb (as decided by MC)
No royalty
Non-exclusive license
-SSIon direct cost, when non-exclusive to more then one client the cost could be divided by such no of clients to arrive at the cost/client.
-medium/large industry as per normal cost
Price decided for specific Kb should be reviewed periodically, atleast every three years for revision, if any required.
(a)In- house development. Ownership & licensing vest in CSIR
(b)Through contract R&D and subsequently rendered unencumbered as per agreement. Ownership & licensing as per agreement
(2)Encumbered: - Through contract R&D with total/ partial finance support & with/without technical support from client. Ownership & licensing as per agreement
Licensing of IP : - granting licensee the right to further develop the IP or to utilize the IP to make the resulting product(s) either for commercial/ captive purpose or as otherwise agreed to.
Financial aspects: - varies on case to case basis on the following factors:
(a) Cost of Development:-
(i)cost of
(a) Deployed CSIR staff mandays as per CSIR prescribes rate and
(b) Temporary staff deployed at actual cost + 40 % OH
(ii)Cost of consumable raw materials/consumable/ physical inputs/services/utilitieswith 25% OH (toward
expenses for purchase, storage, handling etc.
(iii)equipment usage cost/ cost of equipment procured specially for the projects :-
(a) Existing one to be charged on pro-rata based on as annual usage charges upto 20% of cost of equipment and installation. Where cost cannot be ascertained the charges are to be decided by CA.
(b) New equipment is to be charge with an additional procurement and handling charges of 5% of the cost of the equipment.
(iv)Contingencies including external payment for facilities/services
(b)Cost of securing the IP: - with minimum floor price of 5 Lakh per IP. Concession in exceptional circumstance with approval of DG
(d)IF: - charges for CSIR investment over a period of time, in building up and sustaining the extent level of expertise, knowledgebase and facilities. Charges should be commensurate with quantum and quality of CSIR’s resource input and also the likely benefits to be derived by the clients on implementation of the project results
Consultancy: - institutional, in area of expertise preferably its trust area. Comprises scientific, technical, engg., or other proff. Advice/ assistance based on the available knowledge base / expertise of the Lab., and envisaging only minimum use of lab. facilities for essential experimentation and computation to meet the objectives of the consultancy assignments. It covers
(1)Scientific, technical, engg. or other proff. Advice.
(2)Literature survey and preparation of feasibility studies, technology forecasting/ evaluation reports etc.
(3)Interpretation of test result and data provided
(4)Risk and hazard/ environmental impact analysis, pollution abatement/ control measures etc.
(5)Assistance in erection, commissioning, operation, troubleshooting, productivity improvements, energy conservation, waste utilization etc.
(6)Customized HRD program
(7)Technical advice (one time) such as troubleshooting, problem resolving, quality control etc.
Financial aspects:-
(1)Direct expenses:-
(i)cost of
(a) Deployed CSIR staff mandays as per CSIR prescribes rate and
(b) Temporary staff deployed at actual cost + 40 % OH
(ii)Cost of consumable raw materials/consumable/ physical inputs/services/utilities with 25% OH (towards expenses for purchase, storage, handling etc.
(iii)equipment usage cost/ cost of equipment procured specially for the projects :-
(a) Existing one to be charged on pro-rata based on as annual usage charges upto 20% of cost of equipment and installation. Where cost cannot be ascertained the charges are to be decided by CA.
(b) New equipment is to be charge with an additional procurement and handling charges of 5% of the cost of the equipment.
(iv)TA/DA:-
(a)at CSIR rates with exception to reimburse total expenditure with prior approval of Director
(b)Air travel to non-entitle G.S on functional basis & if it is expedient to do so in public interest.
(v)Contingencies including external payment for facilities/services
(vi)Others (if any)
(2)Intellectual fees: - charges for CSIR investment over a period of time, in building up and sustaining the extent level of expertise, knowledgebase and facilities. Charges should be commensurate with quantum and quality of CSIR’s resource input and also the likely benefits to be derived by the clients on implementation of the project results. There is no upper ceiling but it should in no case be less than the estimated manpower charges, except in case of consultancy offered against open tender, where the IF could be decide by the CA keeping in view the potential competition. For cottage and small scale units (as per govt. definition) the minimum IF could be 30-50% of manpower charges. Not to be charge in case of sister lab. Project.
(3)service tax on (1) & (2)
Project charge = (1) + (2)
Total project cost = (1) + (2) + (3)
Term of payment: - the laboratory shall obtain an advance of not less than 50% of the project cost on or before signing the agreement and the balance in installments linked to suitable milestones/deliverables as defines in the project/ agreement. However, in case of projects from govt. dept. /agencies, PSE, investigational job by Govt., court, statuary authorities etc. and project secured against open tenders, the term of payment may be as per the mutual agreement.
General condition:-
(1)Contractual obligation shall be that of CSIR.
(2)Staff involvement shall be approved by director/MC
(3)As far as possible ‘the team of consultant’ selected for consultancy work should have confidence of the client.
(4)Fair distribution of consultancy work among eligible staff
(5)Consultancy assignment costing less than 50000.00 should not be encouraged except in deserving case with discretion of director.
(6)The total number of days devoted by staff member to consultancy work should not exceed 50 mandays in a financial year.
Contract R&D:- All R&D activities undertaken and executed under specific contractual arrangements agreed upon for the purpose. The projects should fall within the purview of approved research areas of the laboratory. It includes:-
(1)Sponsored R&D:-
(a) Fully externally funded having specified R&D objective. (Exception to full funding of SSP could be made with the approval of CA for specific nationally relevant projects related to defence, health, social welfare and the like)
(d) Can also include process design and engg. , process modeling & simulation, application of computational methods , developments of software etc.
(e) Can be multi-clients also
(2) Collaborative/ cooperative R&D:-
(a) Partially funded by the client
(b) Supplemented by provision of inputs such as expert manpower, engg. , Production/ fabrication of product in bulk for testing/ trials, creation of infrastructural inputs etc.
(a) Deployed CSIR staff mandays as per CSIR prescribes rate and
(b) Temporary staff deployed at actual cost + 40 % OH
(ii)Cost of consumable raw materials/consumable (chemicals, glasswares, stationary, raw materials, component & other store items) with 25% OH (towards expenses for purchase, storage, handling etc.
(iii)Cost of physical inputs/services/utilities (water, steam, gas, electricity, workshop, drawing office etc.) with 25% OH (towards installation, maintenance etc.)
(iv)equipment usage cost/ cost of equipment procured specially for the projects :-
(a) Existing one to be charged on pro-rata based on as annual usage charges upto 20% of cost of equipment and installation. Where cost cannot be ascertained the charges are to be decided by CA.
(b) New equipment is to be charge with an additional procurement and handling charges of 5% of the cost of the equipment.
(v)TA/DA:-
(a)at CSIR rates with exception to reimburse total expenditure with prior approval of Director
(b)Air travel to non-entitle G.S on functional basis & if it is expedient to do so in public interest.
(vi)Contingencies including external payment for facilities/services
(vii)Others (if any)
(2)Intellectual fees: - charges for CSIR investment over a period of time, in building up and sustaining the extent level of expertise, knowledgebase and facilities. Charges should be commensurate with quantum and quality of CSIR’s resource input and also the likely benefits to be derived by the clients on implementation of the project results. Should in no case be less than 40% of total expenses excluding the cost of equipments and other capital investments at the cost of client. For cottage and small scale units (as per govt. definition) the minimum IF could be waived with the approval of CA. Not to be charge in case of Govt. funded & sister lab. project.
(3)service tax on (1) & (2)
Project charge = (1) + (2)
Total project cost = (1) + (2) + (3) (exception to full funding of SSP could be made with the approval of CA for specific nationally relevant projects related to defence, health, social welfare and the like)
Term of payment: - the laboratory shall obtain an advance of not less than 25% of the project cost on or before signing the agreement and the balance in installments linked to suitable milestones/deliverables as defines in the project/ agreement. However, in case of projects from govt. dept. /agencies, PSE, and project secured against open tenders, the term of payment may be as per the mutual agreement.
1.Live at peace with others The easiest way to avoid problems with politics is to get along with people. I'm not saying you need to hug everyone and sing songs, and I'm not saying you have to be a pushover for everyone. You can be pleasant and professional, while at the same time being assertive when necessary. If you have a concern, focus on the issue, not on the person. If you have to refuse a request, explain why and try to come up with alternative solutions. Living at peace with others also means being careful about choosing sides during office power struggles. Aligning yourself with one faction or the other will prevent you from working effectively with people from the "other" side, thereby hampering your productivity and thus your performance. It's even worse if "your" faction loses out. Instead, try to focus on your tasks, dealing with people in either faction on the basis of the tasks alone, and avoid talk on the political issue that separates the groups.
2.Don't talk out of school Three can keep a secret if two of them are dead. —Benjamin Franklin Does your organization have issues? Have people told you things in confidence? Then keep those matters to yourself. Talking to outsiders about issues within your organization makes all of you look bad to that outsider. Furthermore, your boss or your boss's boss will not appreciate that behavior. People will find out that you spoke about what they told you, and they'll lose confidence in you and respect for you.
3.Be helpful We all have responsibilities and objectives, and those things should receive priority. Nonetheless, if it doesn't take too much time, being helpful to others can reap benefits for you. Does someone need a ride in the direction you live? Did your co-worker leave headlights on in the parking lot? Is someone having trouble building an Excel macro? If you can help that person, especially if you can do so without taking too much of your time, you benefit yourself as well as the other person. By doing these things, you're building political capital and loyalty. In doing so, you reduce the chances that you will be the victim of political intrigue.
4.Stay away from gossip I never repeat gossip, so listen carefully. —Old joke Nothing destroys the dynamics of an office more than gossip. Stay away from it, because nothing good comes from it. Just be sure you avoid the "holier than thou" attitude of lecturing your co-workers on the evils of gossip. You'll make them lose face, and they'll resent you. Instead, try subtly changing the subject. For example, suppose the group is talking about Jane's problems with her child, and of course Jane is absent from the group. Do some free association and try to come up with some topic that's related to Jane or her child, but won't involve gossip. Then, make a comment about that topic. For instance, suppose you know that Jane's child is involved in a sports league. Mention this fact, thereby linking the child and the league. Then, shift the conversation so that you're now talking about the league rather than Jane's child. You could ask when schedules will be published, or if they need parent volunteers. If you do it right, no one will even notice that you've moved them away from the gossip.
5.Stay out of those talk-down-the-boss sessions Suppose your co-workers start complaining about the boss. If you join in, it makes you look disloyal to the boss. If you don't, it looks awkward in the group. What can you do? As with the situation of gossip, try changing the subject by linking the boss to another topic, then talking about that topic instead. Or you could simply respond to your co-workers with a smile and a tongue-in-cheek, "Come on, aren't we exaggerating? [name of boss] really isn't THAT bad." Be careful, though, because it could be taken as an admission by you that the boss is bad.
6.Be a straight arrow The best way to keep out of trouble politically is to be seen as someone who doesn't play office politics -- in other words, a straight arrow. Do what you say you're going to do, alert people to problems, and admit your mistakes. Others will respect you, even if they don't always agree with you. More important, you have a lower chance of being a victim of politics.
7.Address the "politics" issue openly when appropriate Many times, when I do organizational assessments, I sense anxiety on the part of client staff. To address this anxiety, I tell people I interview that I'm not there to get people fired. I'm there to help the organization function better. It might not completely allay their fears and suspicions, but at least I've brought up the issue and addressed it. Think about doing the same thing if you believe politics is an underlying theme at your company. Tell people you're not interested in scoring political points but only in getting the job done. It might not work, but unless you bring the matter up, there's no chance at all that they will believe you. So if a co-worker is unavailable, and you have to act on that person's behalf, consider saying to that person, "I had to act because of your absence. I wasn't trying to go behind your back and I wasn't trying to show you up."
8.Document things Nothing saves a job or career more than having a written record. If you believe a matter will come back to haunt you, make sure you keep a record of the matter, either via e-mail or document. Documentation is also an effective way to highlight of your own accomplishments, which can help you when your performance evaluation is conducted.
9.Set incentives to foster teamwork If you're a manger or senior executive, take a close look at your incentives. Are you unwittingly setting up your staff to work against each other? Do your metrics address only individual departments, or do they also address how departments could benefit the larger organization? For example, suppose the hardware department of Sears reduced all its prices by half. If you measured only profitability of the department, you would conclude that it is performing horribly. However, that measurement would neglect to account for increased volume in all other departments because of the hardware department. If you reward employees in a department based only on how well that department does, you may inadvertently cause destructive competition among departments. Each one will be competing against every other one, and all the departments could end up in a worse position. To minimize this possibility, give employees incentives based not only on department results but on organization results as well. That way, employees from different departments have more motivation to work together and less motivation to engage in destructive politics.
10.Set an example for your staff People in an organization look to leadership to see how to act. Do you want your staff to refrain from negative politics? Do you want to see collaboration and teamwork instead of petty rivalries, jealousy, and back-stabbing? Act the way you want your staff to act, and they will follow you.
Courtesy :- Calvin Sun (TechRepublic)
Calvin Sun works with organizations in the areas of customer service, communications, and leadership. His Web site is http://www.calvinsun.com and his e-mail address is csun@calvinsun.com.
Out of a total procurement budget of Rs.8636.18 crore of Departmentof Space (DOS) during 2001-02 to 2006-07, the unutilised budget increased consistently from Rs.83.28 crore in 2002-03 to Rs.438.28 crore in 2006-07. The extent of savings was as high as 30 to 38 percent in some years in certain Centres, indicating serious deficiencies in procurement planning and management.[Para 2.6.1& 2.6.2]
Procurement planning of DOS was deficient as it placed orders on piecemeal indent basis. Assessment of requirement and cost estimations by indentors were inaccurate, leading to large number of indents not resulting in purchase orders and wide variations between indent value and order value. Non-consolidation of similar purchases also resulted in uneconomical purchases and extra expenditure of Rs.93.95 lakh. [Para 2.7.2.1, 2.7.2.2 & 2.7.2.3]
Competitiveness in the tendering process
Procurement practices adopted by DOS did not ensure adequate transparency and competition as 67 per cent of procurements amounting to Rs.996 crore were made on proprietary/ single tender basis. There were instances of proprietary purchases being made for routine items and also in cases where more than one source of supply was available.[Para 2.7.3.1 ]
Fairness and objectivity in the selection process and award of contract
In violation of codal provisions and CVC guidelines, negotiations were held with other than lowest bidders resulting in placement of irregular purchase orders in eight cases, amounting to Rs.44.58 crore.Non-award of contract to the lowest bidders resulted in extra expenditure of Rs.3.42 crore in two cases.[Para 2.7.4.1]
ISAC awarded contract to a supplier who was not found technically suitable and thus, extended undue favour by awarding contract worth Rs.4.27 crore. In other two procurements, ISAC extended undue favour to the suppliers in award of contract worth Rs.9.99 crore by changing the selection criteria after invitation of bids. Changes in terms of purchase order/contracts in other three cases benefited suppliers to the tune of Rs.1.87 crore. [Para 2.7.4.2, 2.7.4.3 & 2.7.4.4]
Delay and inefficiencies in processing and finalisation of tenders resulted in avoidable additional expenditure of Rs.2.70 crore in two cases due to procurement of stores at higher rates, after expiry of initial validity of offer.[Para 2.7.4.4]
Efficiency in Post Contract Management
There were significant delays in inspection of the stores received.Non-replacement of rejected items at ISAC resulted in unfruitful expenditure of Rs.8.73 crore in five cases. Moreover, non-installation/ delayed installation of equipment in six cases for period ranging from 5 to 60 months at LPSC and ISAC resulted in blocking of funds and idling of equipment worth Rs.12.43 crore.[Para 2.7.5.1 & 2.7.5.2]
Advances in 1177 cases, worth Rs.437.73 crore, paid to foreign and indigenous suppliers were pending for 1 to 15 years and more. No interest was charged on these long pending advances by DOS.[Para 2.7.5.3]
There was lack of monitoring of adjustment of advances and renewal of Bank Guarantees. Non renewal of 147 cases of Bank Guarantees amounting to Rs.83.65 crore may expose the organisation to financial risks in cases where suppliers default in making supplies/executing work orders. [Para 2.7.5.4]
Inventory Control
ISAC did not revise its procurement policy for Bonded Stores since the last decade which resulted in blocking of funds worth Rs.600 crore.[ Para 2.8.1]
There was overstocking in 9055 categories of electronic, electrical, electro-mechanical components (Bonded Stores) worth Rs.75.02 crore, resulting in infructuous expenditure due to obsolescence of items. No physical verification of Bonded Stores was conducted in ISAC after 1995-96.[Para 2.8.2, 2.8.4]
Summary of Recommendations
To reduce delays, DOS should prescribe appropriate time frame for each stage of procurement viz., indenting, sanction, issue of purchase order, and supply. Such a time frame should be prescribed after taking into account the type of material to be procured and the sources of supply.
DOS should streamline the system of assessment of requirement by the indentors by maintaining a centralised database of various items, their specifications, status of technology and availability in market, prevailing costs, sources of supplies etc, to ensure accurate projection of requirements and realistic estimation of cost.
DOS should prepare annual procurement plans by consolidating requirements of all the end users in advance to avoid delays, repetitive procurements, maximise value for money by availing quantity discount and enhancing competition. DOS should strictly follow codal provisions in selection and award of contracts by placing orders on the lowest qualified bidder.
To ensure transparency in the procurement process, DOS may consider going in for limited tendering for generic products where more than one supplier is available in the market.
DOS may build up a database of vendors to bring in more competition in the procurement process and reduce proprietary/single tender procurements.
DOS should ensure compliance to the CVC guidelines during evaluation of tenders.
DOS should strictly follow codal provisions in selection and award of contracts by placing orders on the lowest qualified bidder.
DOS should avoid inordinate delays in processing and finalisation of tenders to ensure timely procurement and avoid extra expenditure due to subsequent escalation in price.
DOS should avoid inordinate delays in the placement of purchase orders and ensure strict compliance to the codal provisions for relaxation of terms and conditions of contracts.
DOS should streamline its system of inspection of materials as delayed/non inspection deprived DOS of the opportunity of preferring damage/warranty claims and seeking replacement of rejected items.
DOS should avoid delays in installation/commissioning of equipment by ensuring timely availability of site, infrastructure, etc.
DOS should ensure that advance payments to suppliers are made only in exceptional circumstances subject to payment of interest at appropriate rates.
DOS should make efforts to recover long outstanding advances from the defaulting suppliers.
DOS should closely monitor adjustment of advances and renewal of Bank Guarantees to minimise its financial risk in cases of default on part of the suppliers in meeting their obligations under the contract.
DOS may consider revision of its purchase procedures so as to make it consistent with the provisions of General Financial Rules, 2005.
DOS may review its policy to stock Bonded Stores items on actual need basis and past consumption pattern. The procurement policy drafted in 1995-96 needs be reviewed in the present scenario.
DOS should ensure that physical verification of all types of stores is conducted periodically to reduce inventory cost and make inventory management more efficient.
The items declared as obsolete/ surplus/ un-serviceable should be immediately disposed off to avoid their intrinsic value from diminishing and thus incurring avoidable carrying costs.
Other comments
Rule 161 of GFR, 2005 emphasises the importance of fixing time frame at different stages of procurement. Such a time frame will also make the concerned purchase officials more alert.
Planning for procurement involves realistic and timely assessment of requirements, making proper cost estimates, conducting market surveys to identify the possible sources of supply, clubbing similar requirements to avoid repetitive tendering and obtain quantity discounts, selecting appropriate mode of procurement and formulating most suitable strategy to ensure timely availability of goods and services, as per the requirements of end users.
As the estimated rate is a vital element in establishing the reasonableness of prices, it is important that the same is worked out in a realistic and objective manner on the basis of prevailing market rates, last purchase prices, economic indices for the raw material/ labour, other input costs etc., wherever applicable and assessment done based on intrinsic value.
Competition is the key element of the procurement policy framework and promotes value for money. Effective competition requires non-discrimination amongst suppliers in procurement and the use of competitive procurement process.
As per Rule 154 GFR “procurement from a single source may be resorted to only in emergency cases and in cases of availability of the sole supplier for the required goods, with the approval of the competent authority”.
Good procurement practices offer all interested suppliers a level playing field to compete and thereby, directly expand the purchaser’s options and opportunities. A good procurement process should not only be fair but should be seen to be fair.
Efficient post contract management includes immediate inspection of stores, their installation and commissioning, taking proactive action for replacement of rejected stores, monitoring of financial transactions to safeguard the interest of the organisation, by ensuring that the securities furnished by the suppliers are kept safely and updated periodically.
The formulation of appropriate policy and procedures relating to inventory control and management assumes greater significance, especially in the context of the organisations where the level of procurement is very high. An efficient inventory management not only facilitates smooth operations of an organisation, but also optimises the level of inventory, thus, impacting expenditure on stores. This also involves physical verification of inventory on regular intervals which facilitates identification of surplus/obsolete/ unserviceable items and thus, efficient disposal.
