Wednesday, March 11, 2015

[aaykarbhavan] source Business Line



 

Toilet training

RAGHUNATH RAVI

The writer is a Chennai-based company secretary

A company MD takes his job seriously

The Madras High Court's recent direction to an employer in Chennai to remove the CCTV cameras installed in the restrooms in his factory raises many issues. The legal implication of such gross violation of the applicable laws apart, there are questions raised by the employer's explanation to the complaint by the employees' union.

At the core lies the role and responsibility of the chief executive.

Keen supervision

Media reports quoted the company as stating: "CCTV cameras were installed in restrooms because they were a part of the factory premises. It would in no way affect the personal rights or fundamental rights of employees" and "cameras helped monitor and supervise the factory premises while owners and managers are away. Sometimes the managing director of the company is out of the country or out of station. In such circumstances, he could monitor his factory premises. Employees' benefits are not affected".

Another report says: "Company counsel submitted that the cameras had been fixed all over the factory for the convenience of the Managing Director to monitor the same even when he was out of station."

Well, as admitted in the reply, the managing director of the unlisted public company in existence for over 80 years, with four factories in four different States and 24 branches across the country with a turnover of several hundred crores, personally monitors the factory premises, including the workers' restrooms!

It is surprising that the MD takes upon himself this responsibility to ensure the workmen are not idling there and productivity is not affected. Perhaps he is under obligation to report to the board periodically on the effectiveness of this task!

Onerous responsibilities

How many companies task their chief executives with such responsibilities? It would be interesting to ascertain these details. The general impression is that the MD of a company, under the control and supervision of the board, is vested with the substantial powers to run a company.

To this end, he delegates powers to those relevant executives who are given the responsibility to perform various tasks and report to him.

His primary responsibility would be to lead a team of executives and direct them towards achieving the goals of the entity determined by the Board.

Does this statement of the employer mean that the company does not have any line managers under its fold? It is common in small businesses, where the ownership and management remain with one person, for that person to monitor the various sections in their place of operation, but in a large, multi-location company?

Perhaps we could understand if it was claimed that CCTV was required for monitoring by the supervisor of the workers in the restroom, in order to avoid the workmen idling there.

To say that the managing director needs to engage in such monitoring while he is away from the country (and not just outside the factory premises) does not augur well for an organisation of this stature.

 (This article was published on March 10, 2015)

 


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A.Rengarajan
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Chennai


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