Saturday, August 25, 2007

Should India Inc Opt For Job Reservations?

Help Them To Equip Themselves With Right Knowledge

I am of the firm opinion that in the knowledge-based economy, people with right kind of skill-set will be able to make through and the need is to give underprivileged people the wings by giving knowledge, adding skills and right aptitude rather than providing them the crutches of reservation. The reservation issue in the private sector can be viewed as another item in “Corporate Social Responsibility” (CSR) agenda of the corporate sector. The issue revives the age-old debate on social responsibility of business.
Management Guru, Peter F Drucker observed that business of the business is to do the business so till date; the reservation in the private sector remains a thorny issue. Moreover, there is resentment on this proposal in those corporate entities where for final selection; a candidate has to undergo long-drawn procedure of group discussion, interviews etc. Reservations will generate acrimony among those also who could not get selected just because of not belonging to a group. A few industries are already short of quality manpower because they do not get the right candidates with right skill-set and that is the case when there is no discrimination on the basis of caste, colour or creed. And a few of them have expressed concern even over the mandatory reservation by a few states for their local residents such as Himachal Pradesh.
Another argument for reservation in the private sector may hold ground that funds from public sector banks and government financial institutions are employed on a large scale, so these entities should work for social cause. So, the private sector could have taken the initiative voluntarily, by setting up schools, colleges and training institutes for underprivileged rather than being called for or compelled to toe the line. In this way, they could have served their fellow citizens by equipping them with knowledge, skills and right aptitude and thereby lowering social unrest besides ensuring economic inclusion of a vast population of the country.

Anil Kumar Angrish
Senior Teacher and Research Associate, NIPER

Not In Interest Of Economy

The industry plays a vital role in employment generation but will strongly object to mandatory reservation of jobs in the private sector for the socially underprivileged. At a time when the government is deliberating on industry- friendly labour policies like ‘hire and fire’, reservation would be hugely detrimental and showcase the image of the policies of the country in a poor light. The government should not enforce such a ridiculous directive, which would adversely impact the growth of the industry growing at a phenomenal rate. But surely the government can work upon a broad policy encouraging industries in remoter areas wherein reservation can be ensured but in such a case such units should be suitably rewarded. The industry unassumingly has been taking positive action in empowerment of the economically backward classes and the role of SME in this pretext is highly commendable. Instead the government should help socially backward classes to join the mainstream and empower them in developing abilities to compete. If reservation is forced upon by bringing in legislation MNCs would turn face towards other economies and if it is only for domestic industries it will be detrimental.

Ashwini Kohli,
Senior Vice-President,
Phagwara Chamber of Small Exporters

Decide On Merit

No, there should not be any reservation in India Inc companies. Everything should be decided on merit basis. In this global economy, as our entrepreneurs are spanning their commerce at every corner of the world and more than 10 domestic companies have become the part of the best 500 companies of the world, we need even better talent and skills to cope with global competition. With reservation, our companies would not be able to raise their best standards and it would also damage their already maintained qualitative measurement. The “Better out of the best” policy should be the mantra of the present day.


Dr Ravinder,
VC,
Baba Farid University of Medical Science

Efficiency Will Be Affected

The demand for implementing caste-based reservations in the private sector is gaining momentum. This needs to be considered seriously despite objections by the Confederation of Indian Industry and other businessmen. In a competitive private sector, merit will triumph and not caste. Some incompetent persons may be tolerable in the short run, but in the long run companies without good staff will go bust. The government should not force job reservation in industrial units. This will have a far-reaching impact on the industry as it may completely destroy meritocracy in the industrial units of private sector and bring inefficiency. What is more worrying is its impact on the efficiency and productivity of a unit in an internationally competitive environment in which the industry is striving to become globally competitive. The industry feels that any action on such a move will be a retrograde step as it may adversely affect the capability of the domestic industrial units.

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