Tuesday, October 23, 2007

Sixth Pay Commission

Sixth Pay Commission

Sixth Pay Commission setup after more than 10 years of Fifth Pay Commission.
Some people are criticising it, and some have counter view.

As we all know from last 10 years indian economy performing well this happens due - open economy, cheap labour cost, increasing IT & ITES services and a huge employment generated in this sector.
Due to all this inflation also rise during last 10 years, you can see cost of daily expenses becomes more than double. Travel expenses 10 years ago is near to half of current expenses. Living cost rising to high.
Property prices increases like sky rocketing.
How it happens, example-
1. Factor 1 -When IT employee sitting in india working for global market (US, UK), and when he gets salary of 50000 Rs monthly ( For examply while in US, UK similar categoty employee charging 4000 $ monthly approx 1.60 lack monthly). This is labour margin. And when such employee spend his money to CAB, Auto Rikshaw, Purchasing property, etc. This is a factor of inflation. While government employee serving nation, say domestic market. And it is not a profit making agency, where he can show his performance.
2. Factor 2 - Finance companies, People of Developed companies understand Indian economy is rising and it has potential due to - Cheap Labour , English Language , IT and Computerisation increasing, Cheap Education,
It generates a large number of skilled labour.
Geographic position of India can be best suited for 24 * 7 operation to countries like US, UK. US understand to speed up there operation and better service they have to rely on country like India.

Due to all this FII ( Foreign Institutional Investor ) invest in India, that's why Indian Share Market is booming.
And due large inflow of dollar and other foreign currencies, inflation also going to high.
For example , FII invest in Indian share market, and share market increases, Now people of india OR company operated in India use this money to other comodity like property etc.
Then due to this factor inflation rises, also Indian economy rises.

To maintain this gap need of sixth pay commission arises, it doesn't mean they give any reward to government employee.
Sixth Central Pay Commission comprising of the following:
1 Chairman Mr. Justice B.N.Srikrishna
2 Member Prof. Ravindra Dholakia
3 Member Mr. J.S.Mathur
4 Member-Secretary Smt. Sushama Nath

Some sources give suggestion how to implement sixth pay commission -
1. Reduce staff in government sectors.
2. Since primary function of government is to give better service to nation. For this government staff shiould be computer savvy ( it can help us for reducing staff), provide online services that's why government bank are now going to IT solutions like - home banking, net banking, ATM machine, smart card solutions etc., and almost all government department going for computerization. Through online service people can save there time, travelling expenses, can get service 24*7, and can keep record easily. Cost of record keeping can be much lower through paper less work, If they use smart card payment then saving of paper currency for the nation.
And goverment can keep track record of all activity easily.
Cyber Security and Cyber Lay is highly needed.
3. Government staff should be competent, and performance system should be there. But problem is who decide performance of its employee, traditional system for promotion ( judging performance) is - CR ( Confidential Report, Direct Interview and no record of this, Seniority etc.
By this competent staff becomes incompetent, they are going to flattery of authority, involve in corruption etc.

Performance system can be -
1.Since senior person not hear any suggestion of there sub ordinates, not maintaining any such record. There should be a provision like - people can submit there suggestion anonymously through electronic media ( and a special number to be generate). After end of the year, if the suggestion are really good this should be taken as performance.
2.There is a provision - Subordinate staff should send his request/problem in working to his senior as well as to his super senior authority and a copy of this to Government's personal department ministry.
3. Training programs, part time educational programs to be run to make a competent staff.
4. Senior authority creates problem and trying to involve employee in corruption.Probationary period is totally bogus, where senior authority torture its employee.
5. For Promotion - After every three year there should be written test(2-3 stages), Interview videography record should be there. Seniority, CR should be given very less weightage.
6. Government runs by old age people, while IT companies are runing by young people. Government should learn a lesson from this and not to be increase retirement age( Problem is government have to think about vote bank, how they give so much money to its employee, if 6th pay commission comes with huge expenditure).
To make its staff competent, max. age limit should not increases. We know creativity of mind reduces after 50 years of age sharply.

1 comment:

Unknown said...

There is a disparity between Govt and Private employees all over the world. Even in the US, private employees earn more than their Govt compatriots. But because of the stronger purchasing power of the dollar, they are able to live a comfortable life. But in India any amount earned is not enough.A salary hike after a pay commission may be sufficient for a few years, but by that time private salaries would have gone up many times contributing to inflation. By the time the next pay commission is constituted and its report is implemented, govt employees would be living like beggars in dilapidated govt quarters.The only option for talented govt employees is to quit their measly jobs and join the private sector and ensure a good life for their children.