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1

DRAFT

HR Value Proposition

by

Dave Ulrich

and

Wayne Brockbank

DRAFT; Please do not copy without permission from authors. Dave Ulrich (dou@umich.edu,

514-342-2243) Wayne Brockbank (wbrock@umich.edu, 734-665-2951)

To be published by Harvard Business School Press, 2005

© Dave Ulrich and Wayne Brockbank

2

Contents

1 The Premise of HR Value

2 External Business Realities

3 External Stakeholders: Investors and Customers

4 Internal Stakeholders: Line Managers and Employees

5 HR Practices That Add Value: Flow of People and Performance

6 HR Practices That Add Value: Flow of Information and Organization

7 Building an HR Strategy

8 HR Organization

9 Roles for HR

10 Competencies That Make a Difference

11 Developing HR Professionals

12 Implications for the Transformation of HR

3

Dave Ulrich

Dave Ulrich is on a three-year sabbatical (until July 2005) from the University of Michigan,

where he is a professor of business, to serve as president of the Canada Montreal Mission for the

Church of Jesus Christ of Latter-day Saints. Professionally, he studies how organizations use

human resources to build capabilities of speed, learning, collaboration, accountability, talent, and

leadership. He has helped generate multiple award-winning databases that assess alignment

between business strategies, HR practices, and HR competencies, and he has consulted and done

research with more than half the Fortune 200.

He has published more than 100 articles and book chapters and 12 books, including Why

the Bottom Line Isn’t: How to Build Value Through People and Organization (with Norm

Smallwood), Results Based Leadership: How Leaders Build the Business and Improve the

Bottom Line (with Norm Smallwood and Jack Zenger), and Human Resource Champions: The

Next Agenda for Adding Value and Delivering Results.

He was editor of Human Resource Management Journal (1990–1999), and has served on

the editorial boards of four other journals. At present, he is on the Herman Miller Board of

Directors and is a Fellow in the National Academy of Human Resources. In 2001, he was ranked

by BusinessWeek as #1 management educator and guru, and in 2000, he was listed in Forbes as

one of the “world’s top five” business coaches.

E-mail:

Wayne Brockbank

Wayne Brockbank is clinical professor of business at the University of Michigan Business

School, as well as faculty director and core instructor of the Strategic Human Resource Planning

Program, the Human Resource Executive Program, and the Advanced Human Resource

Executive Program at the university’s Executive Education Center, programs that have been

consistently rated over the last twelve years as the best HR executive programs in the United

States and Europe by the Wall Street Journal and BusinessWeek.

He is director of the Michigan Human Resource Executive Programs in Hong Kong,

Singapore, and India as well as the Michigan Global Program in Management Development in

India. He is also a distinguished visiting professor of business administration at Instituto De

Altos Estudios Empresariales (Argentina), and teaches at Mt. Eliza University (Australia).

His research focuses on linkages between HR practices and business strategy, high-valueadded

HR strategies, and implementing business strategy through people. He has published on

these topics in the Human Resource Management Journal, Human Resource Planning, and

Personnel Administrator and has contributed numerous book chapters. In 2000 the editorial

board of the Human Resource Management Journal named his article “If HR Were Strategically

Proactive?” the best HR paper of the year. He has consulted with major corporations on every

continent. Among his clients have been General Electric, Motorola, Harley-Davidson, Citicorp,

Cisco, General Motors, Saudi Aramco, Texas Instruments, BP, Goldman Sachs, and Hewlett-

Packard. He completed his Ph.D. at UCLA, where he specialized in organization theory and

business policy and strategy.

E-mail:

4

HR Value Proposition

Preface

We like human resources (HR). We like HR practices that deal with people, performance,

information, and organization because they create an infrastructure that affects employees,

customers, line managers, and investors. When HR practices align with strategies, goals are met

and sustained. We like the HR function because it allows functional experts to help sustain

organization results. When the HR function operates well, it becomes an exemplar of how to

bring specialist expertise to business requirements. We like HR professionals because, for the

most part, they value people and they work to create both competitive and compassionate

organizations. When HR professionals develop competencies and play appropriate roles, they

become partners and players in the business. We like the intellectual challenges of figuring out

how HR practices, functions, and professionals add even greater value.

For the last twenty years of our professional lives, we, along with others, have been committed

observers of and champions for the HR profession. We have turned our commitment into action

through education and practice. We have had the privilege of training thousands of HR

professionals at the University of Michigan and elsewhere. We have worked in hundreds of

companies to assess and improve their HR effectiveness.

In this process, we have learned a great deal about how to position and focus HR. In the 90’s,

the book HR Champions (by Dave Ulrich) discussed the deliverables of HR and identified four

roles that HR professionals play: employee champion, administrative expert, change agent, and

strategic partner. When HR professionals play these roles, HR focuses more on outcomes than

on activities. Employee champions deliver competent and committed employees.

Administrative experts deliver efficient HR practices. Change agents deliver capacity for change

in individual behavior and organization culture. Strategic partners deliver business results.

In the early 2000’s, Dave Ulrich and Norm Smallwood’s Why The Bottom Line Isn’t discussed

intangibles and suggested that HR investments build organization capabilities. These

organization capabilities generate market value through the intangibles they create. Capabilities

that lead to intangible market value include: talent, speed, collaboration, accountability, shared

mindset, learning, and leadership. HR professionals make intangibles tangible by building

organization capabilities. Organization capabilities are the deliverables of HR.

Each of us has previously published on the changing role of the HR profession. Wayne

Brockbank received the paper-of-the-year award from The Human Resource Management

Journal for asking what would happen “If HR Were Strategically Proactive?” His paper

addresses the future of HR and its role in building competitive advantage.

5

For over fifteen years, we have conducted on-going research on HR competencies, most recently

synthesizing that work in Competencies for the New HR (by Wayne Brockbank and Dave

Ulrich) published by Society for Human Resource Management, the University of Michigan, and

Global Consulting Alliance. In this work, we focus on how HR professionals can identify and

master crucial competencies for business success. As a result of fifteen years of research, we

have accumulated the largest data set in the world on HR competencies that differentiate

business performance and define what HR professionals should know and do.

More recently, HR Business Process Outsourcing by Ed Lawler, Dave Ulrich, Jac Fitz-enz, and

James Madden suggests ways to deliver the administrative work of HR through outsourcing. We

argue that the field of HR is being split in half. Much of the traditional, administrative, and

transactional work of HR, e.g., payroll, benefits administration, staffing policies, training

logistics, and so forth must be carried out more efficiently. Most large firms have either built

service centers and invested in HR technology, or outsourced these transactions. What is left

after transactional HR has been automated, centralized, eliminated or outsourced forms the heart

of this book, The HR Value Proposition.

As we have attempted to apply the above ideas, we continue to be confronted by future focused

questions such as:

• Why does HR matter so much more today?

• How do I convince my line manager to pay attention to HR issues?

• What specific things can HR do to connect with customers, investors, employees, and line

managers?

• What are emerging HR practices? While deliverables (outcomes, intangibles, or

capabilities) are important, what are the investments in HR practices that make these

outcomes happen?

• How do we create a powerful line of sight between business strategy and HR?

• How do we organize our HR function? In particular, after we outsource transaction work,

how do we organize to deliver more strategic HR work?

• How does HR help to build, not just measure, intangible value creation?

• What are the evolving and emerging roles for HR professionals?

• What knowledge, skill, and ability should HR professionals demonstrate that impact

business performance?

• How can we develop more capable HR professionals and department to do the above?

These are the questions that remain after re-engineering, automating, or outsourcing HR. These

are the questions we address in this book.

6

We continue to believe that HR professionals should focus more on deliverables than on doables

or activities. We believe that key deliverables are organization capabilities and intangibles that

define the organization’s identity and personality and that deliver high performance to all

stakeholders. We believe that HR leaders can align practices to more effectively execute

business strategy. We believe that HR professionals who demonstrate the right competencies

and play the right roles will be more effective than those who do not. And, we believe that with

creative thought and discipline these beliefs will become actions that deliver value. In sum, we

believe that this a great time to be an HR professional.

In this book, we expand on these beliefs and provide empirical and best-practice evidence that

show how to turn these ideas into action.

In writing this book, we made a strategic choice to offer an integrated blueprint for the future

rather than to deal with one piece of the overall HR puzzle. Our previous works covered subject

such as “HR roles” or “HR deliverables as intangibles” or “HR strategy” or “HR competencies”

or “HR outsourcing.” This book brings all those elements together in an integrated blueprint for

the future of HR. As a result, it could be sub-titled, “HR NOT for Dummies.” This is a complex

book. It offers more content than cheerleading. It offers a range of ideas on an integrated model

of how HR can and should be performed. It is an action book, filled with ideas on how to do HR

rather than merely advocate positions about what HR can and should become.

The essential message of our work is very simple: HR must deliver value. HR practices must

create value in the eyes of investors, customers, line managers, and employees. HR departments

must be organized. They must implement strategies that create value by delivering business

results in efficient and effective ways. HR professionals deliver value when their personal

competencies deliver business results. Value is the foundation and premise of our HR

architecture. The HR Value Proposition offers an integrated approach to what HR professionals

and departments can and should do to create sustained value.

In drafting this book, we chose to present tried and tested work as well as innovative and

leading-edge ideas. Often, the tools and cases reflect what we have learned from both successes

and failures. By extending what is, we hope to be thoughtfully challenging and defining where

the HR profession can and should move.

We believe the 14 criteria for value around which the book is organized apply to large global

multinational firms. We offer examples of how firms headquartered in Europe, Asia, and North

America create value through investments in HR. But the principles also apply to small firms

and public agencies. We share a number of stories of how smaller companies deliver value

through HR. In fact, we believe that the HR challenge is greater in firms with only a few HR

professionals because those HR professionals must be both generalists and specialists. Also, we

believe that as scrutiny of public agencies increases, people will gain an enhanced appreciation

of the centrality of HR in building capabilities.

7

Mostly, we believe the ideas in the book should be actionable. We invariably begin our

engagements with the general goals of: think (outside the box, about how to create value),

behave (turn ideas into action with honest assessments of what is and tools for what can be), and

have fun (harder to do in a book, unless the fun is learning and playing with the proposed ideas).

Because we have a bias towards action and impact, we generally follow a C - I –A teaching

model: Concept (what theory and extensive empirical research tells us can be done), Illustration

(what is being done by leading companies), and Application (what the reader can do though

assessment and investment). As we wrote each chapter, we asked ourselves, “What would an

HR professional charged with this assignment need to know and do?” For example, what would

the leader need to know and do to improve the performance management process? (Chapter 5)

To enhance the flow and utilization of customer information? (Chapter 6) To turn business

strategy to HR strategy? (Chapter 7) Or to develop HR professionals? (Chapter 11) So, we

provide concepts to frame the issue, illustrations of what others have accomplished, and

templates with assessments and tools for action that the reader can adapt and apply.

The target audience for this book is HR professionals everywhere in the world. Any HR

professional who wants to add value by building a knowledge base concerning external business

realities (Chapter 2), specifying the outcomes of HR (Chapters 3 and 4), by investing in

innovative HR practices (Chapters 5 and 6), by upgrading the HR function (Chapters 7 and 8),

and by improving professionalism of HR professionals (Chapters 9, 10, and 11) should find this

book a useful blueprint. But, we also believe that line managers who are increasingly worried

about intangibles, strategy execution, human capital, and other organization and people issues

can use this blueprint to determine what to expect from their HR function. As the HR function

begins to be transformed, other staff functions such as marketing, finance, information

technology, facilities, and research and development may also choose to adapt these ideas to

achieve functional excellence.

We hope the book will generate debate. We know that not all of what we propose will work in

every situation. But, we hope to provoke thoughts and action that will enable HR to create

sustainable value.

While we are responsible for flaws in thinking and writing, we owe a debt of gratitude to many

people for their contributions to this book. Most will go unnamed. In thousands of workshops,

we have spoken with many thoughtful and dedicated HR professionals about these ideas. We

learn from these encounters and are in debt to unnamed professionals who are committed to the

HR field, who are dedicated to learning, and who desire to add greater value to business through

people. But, some colleagues have been particularly instrumental in shaping our thinking and

deserve special attention.

Norm Smallwood, a co-author on other books and partner in RBL, has a knack for turning ideas

into action and for getting quickly to the heart of an issue. He is a great partner, colleague and

friend whose ideas have shaped our thinking. Our faculty colleagues in the HR programs at

8

Michigan and elsewhere have shaped our thinking in ways they probably don’t even realize.

Dick Beatty, Ron Bendersky, John Boyer, Marshall Goldsmith, Lynda Gratton, Gordon Hewitt,

Bill Joyce, Steve Kerr, Dale Lake, CK Prahalad, Caren Siehl, Warren Wilhelm are brilliant

presenters and shapers of the HR profession. Our work builds on the legends in HR whose ideas

we savor and enjoy. John Boudreau, Ram Charan, Jim Collins, Lee Dyer, Bob Eichinger, Fred

Foulkes, Jac Fitz-enz, Jay Galbraith, Gary Hamel, Mark Huselid, Bob Kaplan, Ed Lawler, Mike

Losey, Henry Mintzberg, Mike Losey, Dave Nadler, Jeff Pfeffer, Libby Sartain, and Sue

Meisinger have all influenced the profession of HR by their writing and thinking. We have

learned from them. We also have colleagues with whom we have collaborated on numerous

projects which have shaped how we perceive HR’s place in the business world, including Katy

Barclay (GM), Chris Moorhouse (BP), Tony McCarthy (Royal Mail), Ralph Christensen

(Hallmark), Pedro Granadillo (Eli Lilly), Paul McKinnon (Dell), Tony Rucci (Cardinal Health),

Chuck Nielson and Steve Levin (Texas Instruments), Satish Pradhan (Tata Group), Mike Tucker

(Baxter Healthcare), Denise Peppard (Wyeth), Michael Johnson (Williams), Glenn Gienko

(Motorola), Andre Van Heemstra and Jan Peelen (Unilever), John Hofmeister (Shell), and

Alastair Imrie (BAE Systems).

For this particular work, we owe an unspeakable debt of gratitude to Hilary Powers, a “writeknight”

who turned our elephant in a jaguar. Marnie Leavitt has patiently discovered and edited

numerous writing faux-pas. We also appreciate the support of Harvard Business Press,

particularly Melinda Merino who has expressed enormous confidence in the project and offered

timely suggestions.

We also express our ongoing appreciation to our families: Wendy, Nancy, Carrie, Dave,

McKell, Wes, Leah, Monika, Michael, and Brynna. Without them, much of the purpose and joy

of all that we do would be lost. With them, life is full of meaning and joy. They are in fact our

personal value proposition.

Dave Ulrich

Montreal

Wayne Brockbank

Ann Arbor, Michigan



NO DUE CERTIFICATE

xx.xx.xxxx

This is to certify that there is no due from Mr.X.Xxxxx, xxx(Dept), xxxx (Desig), to our department, further to his submission of resignation letter dated 0X.0X.0X.

1.Accounts :

2.Fabric Stores :

3.Accessories Stores :

4.Technical Library :

5.Machinery Maintenance :

6.Electrical Maintenance :

7.Administration :

8.Production :

With Regards

X.Xxxxxxxxx

HR Manager

xx.xx.xxxx

TO WHOMSOEVER IT MAY CONCERN

SERVICE CERTIFICATE

This is to certify that Mr.x.xxxxxxx, residing at No.x/xxx xxxxxx xxxxxx Po) xxxxxxxx (Via), xxxxxxxxxx as per our records is employed in our organization as Xxxxxxxxx effective from XX.XX.XX. This is issued for the purpose of the renewal of XXXX Xxx (Etc.)

For Xxxxxx Xxxxxxxx Xxx Ltd.

X. Xxxxxxxx

HR Manager



XX.xx.xxxx

TO WHOMSOEVER IT MAY CONCERN

SALARY CERTIFICATE

This is to certify that Ms.X.xxxxxx D/o. Mr.x.xxxxxxx, is employed in our organization as Xxxxxxx (Xxxxx Xxxxxxx) effective from XX.xx.xx. xxx permanent residence address as per our record is x – xx, xxxxxxxxx, xxxxx xxxx (Po), xxxxxxxx - xxxxxx. This is issued for the purpose of obtaining hostel accommodation at xxxxxxxxxx. Hxx salary for the month of XXXxxxxx ’0X is Rs.xxxx/- (Rs. Xxxx xxxxxxx only)

For Xxxxxxxxx Xxxxxx xxx Ltd.

X. Xxxxxxxxx

HR Manager

Strategic human resource management (SHRM)





Introduction

Liberalization and indust6rialisation has paved an increasing pressure on organizations in India to change from indigenous, costly, sub-optimal levels of technology to performance based, competitive and higher technology provisions. The response to liberalization has created opportunities for technology upgrading and sophistication, resource mobilization from new sources, highly competitive input/output market, high growth and buoyant environment and HRM issues associated with strategic initiatives of diversification, mergers and acquisitions, restructuring, joint ventures, strategic alliances and for overall internationalization of the economy (Som, 2002). change from a regulated environment to a free market environment has direct implications for SHRM practices in India (Krishna and Monappa, 1994, Rao, 1999) and HRM specialists and the HRM departments are under severe pressure to bring about large-scale professionalized changes in their organizations in order to cope with the challenges brought about by economic liberalization (Rao et al., 2001; Som, 2002). Strategic Human Resource Management (SHRM) has received a great deal of attention in recent years, most notably in the fields of Human Resource Management (HRM), Organizational Behavior, and Industrial Relations. An area that demands greater understanding is that of Strategic Human Resource Management (SHRM). SHRM is concerned with top managements attention and approach to HRM as a critical strategic dimension affecting firm performance; which is the objective of this article. Strategic human resource management (SHRM) enhances productivity and the effectiveness of organizations. Their implementation in organizations has proven that when organizations employ such personnel practices (mentioned in this paper) they are more able to achieve their goals and objectives. This article first describes what the word Strategy means and shifts its focus on HRM at a strategic level highlighting its importance in the present day organizations. The paper then highlights what best practices (as a result of strategic planning) the organizations can adopt that would ensure them of success.

What are Strategies?

Strategy is a multi-dimensional concept going well beyond traditional competitive strategy concepts. Strategies are broad statements that set a direction. Strategies are a specific, measurable, obtainable set of plans carefully developed with involvement by an institution's stakeholders. These action statements are linked to an individual or individuals who are accountable and empowered to achieve the stated result in a specific desired timeframe. They are patterns of action, decisions, and policies that guide a group toward a vision or goals.

Strategic human resource management (SHRM)

Strategic human resource management is a complex process which is constantly evolving and being studied and discussed by academics and commentators. Strategic Human Resource Management (SHRM) is an area that continues to evoke a lot of debate as to what it actually embraces. Definitions range from 'a human resource system that is tailored to the demands of the business strategy' (Miles and Snow 1984) to 'the pattern of planned human resource activities intended to enable an organization to achieve its goals' (Wright and McMahan 1992).

Strategic human resource management (SHRM) is a concept that integrates traditional human resource management activities within a firm's overall strategic planning and implementation. SHRM integrates human resource considerations with other physical, financial, and technological resources in the setting of goals and solving complex organizational problems (Legnick-Hall & Legnick-Hall, 1988) SHRM also emphasizes the implementation of a set of policies and practices that will build employee pool of skills, knowledge, and abilities (Jackon and Schulerm 1995) that are relevant to organizational goals. Thus a larger variety and more complete set of solutions for solving organizational problems are provided and the likelihood that business goals of the organization will be attained is increased (Mechelin, 1996).

Strategic Human Resource Management (SHRM) is an area that continues to evoke a lot of debate as to what it actually embraces. Definitions range from 'a human resource system that is tailored to the demands of the business strategy' (Miles and Snow 1984) to 'the pattern of planned human resource activities intended to enable an organization to achieve its goals' (Wright and McMahan 1992). Although the difference between these two seems subtle, the implications of the difference are considerable. Where in the first definition human resource management is a 'reactive' management field in which human resource management becomes a tool to implement strategy, in the latter definition it has a proactive function in which human resource activities actually create and shape the business strategy (Sanz-Valle et al. 1999).

Strategic HRM can be regarded as a general approach to the strategic management of human resources in accordance with the intentions of the organisation on the future direction it wants to take. It is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need. It has been defined as:

All those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of business. (SCHULER, R.S., 1992)

The pattern of planned human resource deployments and activities intended to enable the forms to achieve its goals. (WRIGHT, P.M. and MCMAHAN, G.C. (1992)





Approaches of the SHRM,

attempts to link Human Resource activities with competency based performance measures (Havards approach)

attempts to link Human Resource activities with business surpluses or profit(Michigan approach)

These to approaches indicate two factors in an organisational setting. The first one is the human factor, their performance and competency and the later is the business surplus. An approach of people concern is based on the belief that human resources are uniquely important in sustained business success. An organization gains competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives. Integration of the business surplus to the human competency and performance required adequate strategies. Here the role of strategy comes into picture. The way in which people are managed, motivated and deployed, and the availability of skills and knowledge will all shape the business strategy. The strategic orinetation of the business then requires the effective orinetation of human resource to competency and performance excellance.





Benefits of SHRM

1. Identifying and analyzing external opportunities and threats that may be crucial to the company's success.

2. Provides a clear business strategy and vision for the future.

3. To supply competitive intelligence that may be useful in the strategic planning process.

4. To recruit, retain and motivate people.

5. To develop and retain of highly competent people.

6. To ensure that people development issues are addressed systematically.

7. To supply information regarding the company's internal strengths and weaknesses.

8. To meet the expectations of the customers effectively.

9. To ensure high productivity.

10. To ensure business surplus thorough comopetency



Barriers of SHRM

Barriers to successful SHRM implementation are complex. The main reason is a lack of growth strategy or failure to implement one. Other major barriers are summarized as follows:

1. Inducing the vision and mission of the change effort.

2. High resistance due to lack of cooperation from the bottom line.

3. Interdepartmental conflict.

4. The commitment of the entire senior management team.

5. Plans that integrate internal resource with external requirements.

6. Limited time, money and the resources.

7. The statusquo approach of employees.

8. Fear of incomopetency of senior level managers to take up strategic steps.

9. Diverse work-force with competitive skill sets.

10. Fear towards victimisation in the wake of failtures.

11. Improper strategic assignments and leadership conflict over authority.

12. Ramifications for power relations.

13. Vulnerability to legislative changes.

14. Resistance that comes through the legitimate labour institutions.

15. Presence of an active labour union.

16. Rapid structural changes.

17. Economic and market pressures influenced the adoption of strategic HRM.

18. More diverse, outward looking approach.





HR Practitioners Role

The HR managers have keen role in the effective planning and implementation of the policies and decisions that in tune with the business changes. They should act as strategic partners and be proactive in their role than mere reactive, passive spectators. The HT managers should understand how far their decisions contribute to business surplus incorporating human competency and performance to the organisation. Strategic HR managers need a change in their outlook from seeing themselves as relationship managers to strategic resource managers. Kossek (1987, 1989) argues that major HRM innovations occur when senior management takes the lead and adoption of innovative SHRM practices is dependent on the nature of relationship of the HR Department with the CEO and the line managers. Legge (1978) commenting on the actions of the personnel practitioner in the innovation process suggests that adoption of an innovation by an organization depends largely on HR practitioners' credibility with information and resource providers. HR Department and HR managers in these innovative organizations play a strategic role (Ulrich, 1997) linking the HR strategy with the business strategy of the organization. A crucial aspect concerning SHRM is the concepts of fit and flexibility. The degree of fit determines the human resource system's integration with organization strategy. It is the role of HR Managers to ensure this fit in between Human Resource System with the Organization Strategy.

Conclusion

As global business competition shifts from efficiency to innovation and from enlargement of scale to creation of value, management needs to be oriented towards the strategic use of human resources. Strategic human resources management practices enhance employee productivity and the ability of agencies to achieve their mission. Integrating the use of personnel practices into the strategic planning process enables an organization to better achieve its goals and objectives. Combining human resource practices, all with a focus on the achievement of organizational goals and objectives, can have a substantial affect on the ultimate success of the organization. To manage future operations effectively, it is essential that companies produce "business leaders" and "innovators" through SHRM Approach

Courtesy

Megha Maheshwari

No.13015/2/97-Estt(L)

Government of India

Ministry of Personnel, P.G. & Pensions

(Department of Personnel & Training )

…..

New Delhi, Dated the 7th October, 1997

OFFICE MEMORANDUM

SUBJECT :-- Recommendation of Fifth Central Pay Commission relating to grant of COMMUTED LEAVE / LEAVE ON MEDICAL CERTIFICATE to Gazetted and Non-Gazetted Governemnt Servants.



The undersigned is directed to say that under the provisions of Rule 19 of Central Civil Services (Leave) Rules,1972, an application for leave on medical certificate made by-

a Gazetted Govt. servant shall be accompanied by a medical certificate in Form 3 given by an Authorised Medical Attendant;

a Non-Gazetted Government servant shall be accompanied by a medical certificate in Form 4 given by an Authorised Medical Attendant or a Registered Medical Practitioner;

defining as clearly as possible the nature and probable duration of the illness.

The Fifth Central Pay Commission, in para 117.14 of its report, has recommended that medical leave for all the categories of Government employees should be sanctioned only on production of medical/fitness certificate from either a doctor in a CGHS Dispensary or from an Authorised Medical Attendant in places where CGHS Dispensaries are not available. This recommendation is under consideration of the Govt. and pending a final decision thereon, the President is pleased to decide that a non-gazetted Govt. servant applying for leave on medical certificate would be required to produce the requisite Medical/ Fitness certificate from a CGHS doctor in case the employee is a beneficiary of the Central Government Health Scheme (CGHS) and is residing in the area covered by the CGHS at the time of illness.

These orders take effect from 1st November, 1997. Formal amendments to the Central Civil Services (Leave) Rules,1972 are being issued separately.

In so far as persons serving in the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller & Auditor General of India.

Hindi version is enclosed.

(B. GANGAR)

UNDER SECRETARY TO THE GOVT. OF INDIA

To

ALL MINISTRIES/DEPARTMENTS OF THE GOVT. OF INDIA etc.

Endorsements as per Standard List.



















MOST IMMEDIATE

No. 13018/1/97-Estt.(L)

Government of India

Ministry of Personnel, P.G. & Pensions

(Department of Personnel & Training)

……

NEW DELHI, Dated 7th October, 1997.

OFFICE MEMORANDUM

Subject :- Recommendations of the Fifth Central Pay Commission relating to enhancement of quantum of MATERNITY LEAVE and to allow PATERNITY LEAVE in respect of Central Govt. Employees.

The undersigned is directed to say that consequent upon the decisions taken by the Govt. on the recommendations of the Fifth Central Pay Commission relating to Maternity Leave and Paternity Leave, the President is pleased to decide that the existing provisions of the Central Civil Services (Leave) Rules, 1972, may be treated as modified as follows in respect of civilian employees of the Central Govt. :-

The existing ceiling of 90 days maternity leave provided in Rule 43(1) ibid shall be enhanced to 135 days.

A male Govt. servant (including an apprentice) with less than two surviving children may be granted Paternity Leave for a period of 15 days during the confinement of his wife. During the period of such leave, he shall be paid leave salary equal to the pay drawn immediately before proceeding on leave. Paternity Leave shall not be debited against the leave account and may be combined with any other kind of leave (as in the case of Maternity Leave). It may not normally be refused under any circumstances.

2. These orders take effect from the date of issue.

3. In the light of paragraph 2 above, a female Govt. servant in whose case the period of 90 days of Maternity Leave has not expired on the said date shall also be entitled to the Maternity Leave of 135 days. Similarly, Paternity Leave to a male Govt. employee may also be allowed in case his wife had given birth to the child on a date not prior to 135 days from the date of issue of this order.

4. Formal amendments to the Central Civil Services (Leave) Rules, 1972, are being issued separately.

5. In so far as persons serving in the Indian Audit & Accounts Department are concerned, these orders issue in consultation with the Comptroller & Auditor General of India.

Hindi version is enclosed.

( B. GANGAR )

UNDER SECRETARY TO THE GOVT. OF INDIA

To

All Ministries/Departments of the Govt. of India.

Endorsements as per standard list.















MOST IMMEDIATE

No.14028/7/97-Estt.(Leave)

Government of India

Ministry of Personnel, Public Grievances & Pensions

(Department of Personnel & Training))

……..

New Delhi, the 7th October, 1997

OFFICE MEMORANDUM

SUBJECT: Recommendations of the Fifth Central Pay Commission – Decisions relating to Enhancement of the ceiling on accumulation and encashment of Earned Leave in respect of Central Government employees.

The undersigned is directed to say that consequent upon the decisions taken by the Government on the recommendations of the Fifth Central Pay Commission relating to leave, the President is pleased to decide that the existing provisions of the Central Civil Services (Leave) Rules, 1972, may be modified as follows in respect of civilian employees of the Central Government :-

The existing ceiling of 240 days on accumulation of earned leave provided in Rules 26 & 28 ibid shall be enhanced to 300 days;

The existing ceiling of 240 days for availing of the benefit of encashment of unutilised earned leave shall be increased to 300 days in respect of the following categories :-

retirement on attaining the age of superannuation{(Rule 39(2)};

cases where the service of a Government servant has been extended, in the interest of public service, beyond the date of retirement on superannuation {(Rule 39(4)};

voluntary/pre-mature retirement {(Rule 39(5)};

where the services of a Government servant are terminated by notice or by payment of pay & allowances in lieu of notice, or otherwise in accordance with the terms and conditions of his appointment {Rule 39(6)(a)(i)};

in the case of termination of re-employment after retirement {Rule 39(6)(a)(iii)};

in the case of death of a Government servant while in service to the family of the deceased (Rule.39A);

in the case of leave preparatory to retirement (sub –rule (1) of Rule 38);

in the case of transfer of a Government servant to an industrial establishment (Rule6);and

on absorption of a Government servant in the Central Public Sector Undertaking \autonomous body wholly or substantially owned or controlled by the Central \ State Government (Rule 39-D);

( C) A Government servant who resigns or quits service shall be entitled to cash equivalent in respect of earned leave at credit on the date of cessation of service, to the extent of half of such leave at his credit, subject to a maximum of 150 days (Rule 39(6)(a)(ii) ).

The above orders shall take effect from 1st July, 1997.

The Fifth Pay Commission has also recommended that all employees may be permitted to encash 10 days earned leave at the time of availing of Leave Travel Concession, subject to the conditions that.

the total leave so encashed during the entire career does not exceed 60 days in the aggregate.

earned leave of at least an equivalent duration is also availed of simultaneously by the employees

a balance of at least 30 days of earned leave is still available to the credit of the employee after taking into account the period of encashment as well as leave , and

the period of leave encashed shall be deducted from the quantum of leave that can be normally encashed by him at the time of superannuation.

This recommendation has also been accepted by the Government and accordingly encashment of earned leave may be allowed by the Ministries \ Departments subject to the prescribed conditions. The total encashment of Earned Leave allowed to a Government servant along with LTC while in service and as per the provision of the Central Civil Services (Leave) Rules, 1972, should not exceed the maximum limit \ ceiling of 300 days or 150 days as the case may be.

The orders in paragraph 3 above shall take effect from the date of issue.

The orders as per paragraphs 1 to 4 above shall also apply to Government servants serving in Vacation Departments.

Formal amendments to the Central Civil Services ( Leave ) Rules, 1972 are being issued separately.

In so far as persons serving in the Indian Audit and Accounts Department are concerned these orders issue in consultation with the Comptroller & Auditor General of India.

Hindi version is enclosed.



( B. GANGAR )

Under Secretary to the Government of India

To

All Ministries \ Departments of the Government of India, etc.

Endorsement as per Standard List.



















No. 14015\2\97-Estt.(L)

Government of India

Ministry of Personnel ,P.G. Pension

(Department of Personnel & Training)

…….

New Delhi ,the 31st December , 1997.

OFFICE MEMORANDUM

Subject :- Recommendation of the Fifth Central Pay Commission regarding conversion / commutation of one kind of leave into another.

The undersigned is directed to say that under the provisions of Rule 10 of the CCS (Leave)_Rules,1972 the authority which granted leave to a Government servant may commute it retrospectively into leave of a different kind which was due and admissible at the time the leave was granted but the Government servant cannot claim such commutation as a matter of right

The fifth Central Pay Commission vide para 117.10 of its Report has recommended that conversion of leave into a different kind of leave may be permitted only if it is applied for within a period of 30 days from the expiry of the spell of leave actually availed of by an employee and no discretion should be allowed to the leave sanctioning authority in this regard.

The said recommendation of the Fifth Pay Commission has been accepted by the Government and the president is pleased to decide that the application of a Government servant for commutation of one kind of leave into another may be considered as per the provisions of Rule 10 of CCS (Leave) Rules 1972 and any other Rule as applicable only if the same has been received by the leave sanctioning authority, or any other authority designated in this behalf, within a period of 30 days of the concerned government servant j joining his duties on the expiry of the relevant spell of leave availed of by him \her .

These orders take effect from the date of issue.

Formal amendment to Rule 10 of the Central Civil Services (Leave) Rules 1972 is being issued separately.

In so far as persons serving in the Indian Audit and Account Department are concerned these order issue in consultation with the Comptroller & Auditor- General of India.

Hindi version is enclosed .

(B.GANGAR)

Under Secretary to the Govt. of India

To

All Ministries/Department of the Government of India etc. etc.

Hi Hari, If I may rewrite the same questions above in a lighter vein... Questions I HAVE 3 BAGS FULL... could you share answers and debrief us on the same? Have a nice Day! Sujatha
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