Showing posts with label Management Musings. Show all posts
Showing posts with label Management Musings. Show all posts

Sunday, 15 November 2009

14 Management Principles from Henri Fayol

The 14 Management Principles from Henri Fayol (1841-1925) are:
1. Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive.
2. Authority. The right to issue commands, along with which must go the balanced responsibility for its function.
3. Discipline. Employees must obey, but this is two-sided: employees will only obey orders if management play their part by providing good leadership.
4. Unity of Command. Each worker should have only one boss with no other conflicting lines of command.
5. Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it.
6. Subordination of individual interest (to the general interest). Management must see that the goals of the firms are always paramount.
7. Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system.
8. Centralization (or Decentralization). This is a matter of degree depending on the condition of the business and the quality of its personnel.
9. Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels.
10. Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection.
11. Equity. In running a business a ‘combination of kindliness and justice’ is needed. Treating employees well is important to achieve equity.
12. Stability of Tenure of Personnel. Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely.
13. Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity’ on the part of many managers.
14. Esprit de Corps. Management must foster the morale of its employees. He further suggests that: “real talent is needed to coordinate effort, encourage keenness, use each person’s abilities, and reward each one’s merit without arousing possible jealousies and disturbing harmonious relations.”
What is Management? Five elements


Fayol's definition of management roles and actions distinguishes between Five Elements:
1. Prevoyance. (Forecast & Plan). Examining the future and drawing up a plan of action. The elements of strategy.
2. To organize. Build up the structure, both material and human, of the undertaking.
3. To command. Maintain the activity among the personnel.
4. To coordinate. Binding together, unifying and harmonizing all activity and effort.
5. To control. Seeing that everything occurs in conformity with established rule and expressed command.

Saturday, 14 November 2009

Diversity Management

To some extent demographic changes and globalization are rendering moot the motives that drove equal employment legislation. Employers, in other words, now have little choice but to willingly push for more diversity. White males no longer dominate the labour force, and women and minorities represent the lion’s share of labour force growth over the foreseeable future. Furthermore, globalization increasingly requires employers to hire minority members with the cultural and language skills to deal with customers abroad. (Thus America’s Central Intelligence Agency is aggressively recruiting applicants with Middle Eastern language skills). As the Wall street Journal recently put it: companies do more and more business around the world, diversity isn’t simply a matter of doing what is fair or good public relations. It’s business imperative. So, employers are increasingly striving for racial, ethnic, and sexual workforce balance and harmony as a matter of self interest. In this context, diversity greatly refers to the variety or multiplicity of demographic features that characterize a company’s workforce, particularly in terms of race, sex, culture, national origin, handicap, age, and religion.
However, diversity is potentially a double edged sword. Managing diversity means maximizing diversity’s potential benefits (greater cultural awareness and broader language skills, for distance) while minimizing the potential barriers (such as prejudices and bias) that can undermine the company’s performance.
In practice, diversity management involves both compulsory and voluntary management actions. For example, we’ve just seen that there many legally compulsory actions employers must take minimize employment discrimination. But while such compulsory actions can reduce the more blatant diversity barriers, blending a diverse workforce into a close knit and productive community also requires other steps. Any such diversity management program usually mans starting at the top, as follows:
Provide strong leadership: companies with exemplary reputations in managing diversity typically have CEOs who champion diversity’s benefits. For example, they take strong stands on advocating the need for and advantages of a diverse workforce, and act as role models for exemplifying pro-diversify behaviours, such as by promoting employees even handedly.
Assess the situation: The diversity management program itself typically starts with the company assessing the current state of affairs with respect to diversity. In particular, how diverse are we, and are there any diversity-related issues we need to address? Common tools here include equal employment hiring and retention metrics, employee attitude surveys, management and employee evaluations and focus groups.
Provide diversity training and education: Assuming the assessment reveals issues the firm needs to address to address, some type of change program is in order. This frequently involves some type of employee training and education program, for instance having employee discuss with expert trainers the values of diversity and the types of behaviours and prejudices that may undermine it. Diversity training often aims at sensitizing all employees to the need to value differences and build esteem and at generally creating a more smoothly functioning and hospitable environment for the firm’s diverse workforce.
Change culture and management systems: To reinforce the training, management also needs to reinforce the words of the training with deeds. Ideally, combine the training with other concrete steps aimed at changing the organization’s values, culture, and management systems. Change the bonus plan to incentive plan for managers; to improve their departments’ inter group conflict and employee attitude survey scores.
Evaluate the directly management program: For example, do employee attitude surveys now indicate any improvements in employees’ attitudes towards diversity?
In creating diversity management programs, don’t ignore obvious issues. For example, training immigrants in their native languages can facilitate learning and ensure compliance with matters such as safety rules and harassment policies, and thus ease their entry into your workforce. Supervisor resistance is another issue. One study, in a large British retailer, found that typical diversity prescriptions like “recognize and respond to individual differences” conflicted with the supervisor’s inclinations to treat everyone even handedly.

Social Responsibilty of a Firm

Social responsibility: A firm’s obligation, beyond that required by the law and economics to pursue long term goals that are beneficial to society.
What do we mean when we talk about social, responsibility? It’s a business firm’s obligation, beyond that required by the law and economies, to pursue long term goals that are good for society. Note that this definition assumes that business obeys the law and pursues economic interests. We take as a given that all business firms those that are socially responsible and those that are not will obey all laws that society imposes. Also note that this definition views business as a moral agent. In its effort to do good for society, it must differentiate between right and wrong.
Social obligation: The obligation of a business to meet its economic and legal responsibilities and no more
We can understand social responsibility better if we compare it with two similar concepts: social obligation and social responsiveness. Social obligation is the foundation of a business’ social involvement. A business has fulfilled its social obligation when it meets its economic and legal responsibilities and no more. It does the minimum that the law requires. A firm pursues social goals only to the extent that they contribute to its economic goals. In contrast obligation, both social responsibility and social responsiveness go beyond merely meeting basic economic and legal standards. For example, both might mean respecting the community in which the company operates, treating all employees fairly, respecting the environment supporting career goals and special works needs of women and minorities, or not doing business in countries where human rights violations occur.
Social responsiveness: The ability of a firm to adapt to changing societal conditions.
Social responsibility also adds an ethical imperative to do those things that make society better and not to do those that could make it worse. Social responsiveness refers to the capacity of a firm to adapt to changing societal conditions. Social responsibility requires business to determine what is right or wrong and, thus, seek fundamental ethical truths. Social responsiveness is guided by social norms that can provide managers with a meaningful guide for decision making.
For example, many multinationals and large Indian companies are now making a move towards including differently enabled people on their payrolls. Companies such as HSBC, Sony TV, Essar, Hiranandani Group, Bharti, Prudential and Zenta even attempt to design their infrastructure and facilities to be as user friendly as possible for differently enabled employees, and are making a committed move towards integrating them with the mainstream workforce.
However, as responsible citizens, and future industry leaders, we need to examine whether this is a case of too little, too late. India has an estimated 6 percent of its population as possessing some disability. This figure is a highly conservative estimate, given the narrow definition of “disability” as well as the obvious problems of relying on the census figures in a country like India. Moreover, even going by conservative estimates, this means a population of 6 crores in India finds it a challenge to get through mainstream education, to travel, and to find employment. Corporate India needs to examine whether it is doing enough for this very significant part of our population.
Regardless of one’s own view, whether a manager acts ethically or unethically will depend on several factors. These factors include the individual’s morality, values, personality, and experience; the organization’s culture; and the issue in question. A recent survey, for example, indicated that 82 percent of corporate executives surveyed admitted that they cheat at golf – and 72 percent of them believe that golf and business behaviours are parallel.

Wednesday, 4 November 2009

Experiences and You

If you will call your troubles experiences, and remember that every experience develops some latent force within you, you will grow vigorous and happy, however adverse your circumstances may seem to be.
- James Russell Miller

Leaders in a Crisis

Generally when a crisis looms, a leader needs to quickly understand the situation, risks or problems and reassure key stakeholders that the organizations is taking the right steps to address them. He / she also need to ensure that the organization is prepared for any fallout continues to remain viable and relevant to its key stakeholders and can emerge stronger to take advantage of post crisis opportunities.
In a crisis, many leaders experience fear like everyone else. A focus on short term results is often the way for leaders to ensure their own survival. Such behaviours are also fed and reinforced by the growing demand for quarterly and monthly results and the short three to five year tenures of chief executives. This is where real leaders stand out from the flock who are focused on short term gains and fattening individual payouts.
For a long time; the world has looked to the west for leadership. However, as the US and Europe face a period of economic weakness, the world is looking towards Asia to drive expansion to be sources of consumption, investment, confidence and leadership in the global economy Asia will account for about one third of the world’s trade and money quartered of the world’s gross domestic product by 2020. By 2040, three of the world’s largest countries will be Asia, with the largest being China and India and Japan in the top four.
During a recession, leaders tend to go into protective mode, hunker down and hope over time that the crisis will abate and the situation will go back to normal. Leaders should be prepared to face the crisis and take advantage of uncertainties that are thrown up. Many a times, the best opportunities arise in times of crisis.
Leaders should adapt their strategies to the new reality and not rely solely on what worked in the past. This may mean reinventing themselves and promoting growth and new business in a weak economic climate. This recession is very much a crisis of capitalism and failed leadership especially those of Wall Street leadership seduced by money and recognition. The post-recession business environment needs transformational leaders who can create value over the long term for shareholders, employees and customers.
Organizations have to adapt to the changing business environment in order to excel. Fresh talent hired into the organization is a good source of new ideas and energy. Firms need to have structured ways to imbibe best practices to hone their skills. At the same time, one should not deviate too much from the core policies and practices that are integral to the organization striking a balance is of utmost importance.
In a competitive world, the concept of a futuristic organization cannot be achieved if the foundation itself is built on historic policies and processes that are redundant today. The changing environment and the competitive scenario make it mandatory to continually re-look at policies and processes to achieve desired results from its employees.
Robust policies and practices are recognized as essential components of internal control. It should be made according to the nature or line of business and should be adhered to religiously. Policies and practices are macro terminologies and should be formulated once, for all, but if the dynamics or compositions of businesses keep changing, there is no harm in amending the same to keep pace with the evolving times.
Organizations have to continuously re-look at their processes and policies and bring in innovative policies to retain talent. It becomes all the more important in case of dealing with a generation that wants to grow in their careers at a rapid pace.

Tuesday, 29 September 2009

Ice breakers - Management Games

Ice breakers - Management Games
Alphabetic Introductions

Each participant is asked to choose a letter of the alphabet. Duplicate letters are permitted. They are then given five minutes in which to describe themselves using single words beginning only with that letter. You could award a small prize for the person with the most number of words.

A further optional stage is to ask participants to write down their chosen words on a sheet of paper with their name at the top and display it on the wall for the duration of the event. Others could be asked later on in the event as to whether the words accurately describe the individual.

Anagrams

Make up anagrams of the participants' names and either: display as pairs on a flip chart (for finding pre-allocated partners), or use them on name plates (for pre-arranged seating).

Back-to-Back

Ask participants to find a partner and sit on the floor (or on chairs) back-to-back with that person. Now ask them to take turns telling the other person about an event in their life which is particularly significant for them. The partner may respond non-verbally, but not verbally. Allow at least five minutes for each partner. At the end of the activity ask them to
turn and face each other and discuss the activity for five minutes.

Catch Ball

Instead of going round the class in order when making introductions etc, throw a ball (preferably a soft one) at one of the students who then does the first introduction. This student then throws the ball to someone else. Challenge the class to complete the introductions without throwing the ball to the same person twice. It's probably a good idea to clear the coffee
cups before starting this exercise.

Change

This simple exercise makes people aware of the impact of change and how they feel about it. Ask the participants to fold their arms. Then ask them to fold their arms the other way round. Wait in silence for a few moments before asking them to unfold their arms. Debrief by asking: how difficult it was to fold their arms the other way; what it feels like with their arms folded the other way round; and did they have an urge to unfold or re-fold their arms.

Chinese Whispers

The traditional version of Chinese Whispers is to whisper a sentence to the first person in the class, who whispers it to the next person and so on until the last person repeats the message out loud to the rest of the class.

Typical of the kind of distortion you can get is the classic where: 'Send reinforcements, we're going to advance,' becomes: 'Send three-and-fourpence, we're going to a dance.'

Debrief the exercise by asking:

Where did the message get distorted?

How can we help the communication process? • Big picture • Key points •
Headline • A bit at a time • Look for meaning and connections

Circulate

Have the group form two concentric circles with the same number of participants in each circle - the people in inner circle facing outwards and the people in the outer circle facing inwards. The inner circle remains stationary and the outer circle moves one person anticlockwise every 30 seconds. The aim is for everyone to introduce themselves in the shortest
possible time.

Count the F's

Hand out copies of the following quote:

FEATURE FILMS ARE THE RESULT OF YEARS OF SCIENTIFIC STUDY COMBINED WITHTHE EXPERIENCE OF YEARS.

Ask people to count the number of F's there are in the passage. Very few people will identify all 6 at the first attempt.

Crash Test

The objective of this exercise is to design and construct a device that will protect a raw egg from cracking or breaking when it is dropped from a height of 10m or more. The group is given 30 minutes to plan and 15 minutes to construct the device using only the following materials:

• 12 drinking straws • 2m of masking tape • 1m of string • 1 000 cm2 of tissue paper

Delegation

This is an exercise which demonstrates the difficulty of delegating. Just before lunch or the evening meal, divide the group into pairs and ask that everyone delegate the task of getting or ordering their meal to their partner.

No further communication is allowed between the pair once the task has been set.

Debrief by asking if anyone got a meal that was close to what theywanted. Ask how the situation might have been improved.

This exercise works best with a self-service cafeteria and before the group gets used to the cafeteria's layout and menu. This makes the task more complex and involves the 'delgatee' in showing initiative.

Variations include preventing the use of note taking.

Describe it!

This is an exercise which demonstrates the importance of feedback in communication.

Ask a volunteer to sit with back to class and to describe a drawing that has a number of touching rectangles.

The class attempts to draw the arrangement of rectangles without giving any feedback or asking any questions.

Repeat the exercise with another drawing. This time the class is allowed to ask questions and to give feedback.

Discuss feelings, emotions, results and effects.

DIY Quiz

This is a good exercise for warming up a group when you are part way through a course. It's also great for revising course content. Divide the group into two teams. Give the teams a pile of blank cards and challenge them to write as many questions (and answers) as they can, in 15 minutes which cover the course content to date.

The trainer alternately selects a 'valid' question from one team and directs the question to the other team. The process continues until all 'valid' questions written by both teams have been asked.

The teams score one point for every question they answer correctly and another point for every one of their questions which is selected as 'valid'by the trainer.

Floating Cane

This is an excellent exercise for developing teamwork. First obtain a long bamboo cane or other long, light, small-diameter pole for each group. Line the groups up so that people face each other, then ask one side to take a step sideways to the left so that their eyes are in line with the gap between the shoulders of two opposite participants. Ask them all to put out
their hands palm up and at the same height (about elbow height). When all people have their palms out and lined up, place the cane along their hands.
Let them know that they should keep their hands in contact with the cane, but they shouldn't grasp it. Now ask them to lower the cane down to the ground. The cane always rises. Repeat the exercise until they can achieve the task.


Flying Eggs

Stand the members of the group in a circle, spaced 2m away apart. The objective is for each participant to each throw a raw egg to the next participant until a the egg makes a complete circuit without being dropped.

Once a circuit has been completed successfully, the participants should move three paces away from the center of the circle and try again. The process is repeated until the group runs out of time or they find it impossible to throw the egg around the circle. 20 points are awarded every time the egg is thrown round an enlarged circle.

Get Knotted!

This exercise is best done in a large area - preferably outdoors. Get the group to space themselves along a rope. Say that they should grip the rope tightly and, without removing their hands, tie the rope into a reef knot.
If anyone asks, a reef knot is 'left over right and under; right over left and under'.

Hangman

The children's game of hangman can be used as a diversion during a course and for reinforcing terminology that has just been learnt. At its simplest, the trainer selects a word from a list of words that are related to the subject and, on a overhead transparency, draws a number of dashes equal to the number of letters in the word. The participants guess a letter that
might be part of the word. If the letter is part of the word, it is written above the dash or dashes where it occurs. If the guess is incorrect, an element of the hangman diagram is drawn on the transparency. The exercise continues until either the word is guessed or the hangman diagram is completed.

Magic Carpet

Provide a length of stair carpet for each group and get the group to stand on it. The objective is to turn the carpet over without any group member touching the floor. 50cm per person in the group should be more than long enough, but you can always use shorter lengths to make the exercise more interesting.

Mug Shot

Ask the students to bring either a passport photograph or their identity badges to the course. Display the photographs on the wall along with an identifying letter (the identity badges should have the names taped over). Supply each student with a copy of the course list which has had the names substituted with the identifying letters. The objective of the exercise is
to write the names of the other students against their identifying letters on the course list. This involves matching the people in the room with the photographs on the wall. When approached, people should only give their
name.

They should not say which photograph is theirs. The worse the photographs,the better this exercise works.

Paired Interviews

Some people do not like talking about themselves in front of the class. In this type of introduction the students pair-up with the person they know the least and interview each other. After about 15 minutes each person reports back with a brief biography of their partner.

Saturday, 26 September 2009

Importance of Drafting

In order to reduce the delay in courts and in the process of traditional adjudication mechanism, the Alternative Disposal Mechanism (ADR) was mooted. The dispute resolution through Conciliation, Arbitration and Mediation etc., is regarded as alternative mechanism to resolve the disputes between or among the parties in a defined legal relationship. The dispute resolution through Arbitration has occupied great significance in India in the recent past though it was successfully practiced in the developed nations like United States etc. The Arbitration and Conciliation Act, 1996 replacing the earlier act of 1940, governs the issue of dispute resolution through Arbitration. Any dispute arising out of a defined legal relationship can be resolved through Arbitration. In Arbitration Mechanism, the parties themselves will choose the Arbitrator; agree to the procedure for appointment of Arbitrator, the procedure to be followed by Arbitration, the place of Arbitration proceedings etc. It is all meant to provide the parties to resolve their dispute effectively and speedily without burdening the traditional courts.
Now-a-day, in all transactions and the pursuant documents, the Arbitration clause is incorporated mechanically. Admittedly, the Arbitration mechanism is useful for resolving the disputes and it is costly. In commercial transactions, where there is a genuine dispute and where the stakes are very high, the Arbitration mechanism is useful. But, the common man may not benefit much from the Arbitration mechanism as it is costly.
Section 7 of Arbitration and Conciliation Act, 1996 deal with the “Arbitration Agreement” and the same is extracted below:
“7.Arbitration Agreement. – (1) In this Part, “arbitration agreement” means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not.
(2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.
(3) An Arbitration agreement shall be in writing.
(4) An arbitration agreement is in writing if it is contained in –
(a) a document signed by the parties;
(b) an exchange of letters, telex, telegrams, or other means of telecommunications which provide a record of the agreement; or
(c) an exchange of statements of a claim and defence in which the existence of the agreement is alleged by one party and not denied by the other.
(5) The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the reference is such as to make that arbitration clause part of the contract.”
Whether an Arbitration clause will oust the jurisdiction of Company Law Board/Tribunal and the Company Court?
When there was a dispute between the company and other, between the company and its shareholder and between two companies, then, the issue will be complicated and stakes will be huge very often. The parties in a company dispute may require immediate orders having the binding nature. Generally speaking, there is no bar on referring a company dispute to an Arbitrator, but, the question is as to whether the Arbitration clause will oust the jurisdiction of Company Law Board/National Company Law Tribunal or the Company Court. This issue is to be carefully considered as otherwise, the dispute resolution process may get unnecessarily delayed on the basic question of legal sanctity of an Arbitration Clause in Company documents. This is very very significant issue. Company Law is very very complicated by its very nature and the question as to whether an Arbitration Clause will oust the jurisdiction of Company Law Board or the Company Court, is really interesting to consider.
Normally, unless there is a specific bar on the party concerned in providing an arbitration clause, the parties concerned may have an arbitration clause with regard to the contractual relation between or among them or otherwise. But, the arbitration clause may not come in the way of Company Law Board/Tribunal or Company Court in passing various orders exercising powers under the Companies Act, 1956. Because, the process of winding-up a company cannot be handled by Arbitrator. Again, even by agreement, the procedure prescribed for sanctioning a scheme of amalgamation or compromise can not be ignored and it can only be done by the Company Court as provided under the Act. Thus, the question very often comes is as to whether the Arbitration clause in a document or a company document will oust the jurisdiction of Company Law Board or the Company Court. Referring the issue of providing a arbitration clause between the company and members whatsoever and connecting the same to the right of the member/s to file an application under section 397/398 of the Act, the High Court of Delhi, in In the matter of Surendara Kumar Dhawan and another Vs. R.Vir and others, (1977) 47 Com Cases 277, was pleased to observe that “the shareholders of a company have a right to file a petition under section 397 or section 398 of the Companies Act, 1956, for relief against mismanagement or oppression, if the provisions of section 399 are satisfied. Their right is a statutory right which, by section 9, can not be ousted by a provision in the articles of association of the company. Any article providing that a difference between the company and its directors or between the directors themselves or between any members of the company or between the company and any person shall be referred to arbitration can not debar the jurisdiction of the court in the matter of a petition under section 397 or 398. The court will not stay a petition under section 397 and 398 on an application under section 397 or 398 on an application under section 34 of the Arbitration Act, 1940, based on the arbitration clause”. On the same lines, the High Court of Delhi, inO.P.Gupta Vs. Shiv General Fianance (P.) Ltd. and others, (1977) 47 Com Cases 279, was pleased to observe that“merely because there is an article in the articles of association of the company to the effect that any dispute between the company on the one hand and its members on the other will be referred to arbitration, the court will not stay a petition under section 397 and 398 of the Companies Act, 1956, for relief against mismanagement or oppression in the affairs of a company. Such an article can not be called into play for the purpose of staying proceedings under section 397 or section 398. The provisions of sections 397 and 398 and of section 434 give exclusive jurisdiction to the court and the matters dealt with thereby can not be referred to arbitration. No arbitrator can possibly give relief to the petitioner under sections 397 and 398 or pass any order under section 402 or section 403”. Again, on the same lines, it was reiterated by the Bombay High Court, in Manavendra Ckhitnis and another Vs. Leela Chitnis Studios P.Ltd. and others, (1985) 58 Com Cases 113,wherein the court was pleased to observe that “merely because there is an arbitration clause or an arbitration proceeding, or for that matter an award, the court’s jurisdiction under ss.397 and 398 of the Companies Act, 1956, can not stand fettered. On the other hand, the matter which can form the subject-matter of a petition under ss.397 and 398 cannot be the subject-matter of arbitration, for an arbitrator can have no powers such as are conferred on the court by sections such as s.402.”
The reason assigned by the courts as can perceived for saying that the Arbitration Clause will not oust the jurisdiction of Company Court is the requirement of “expertise”. This is very interesting to dealwith. Even in other matters, where there is a special set-up or law, can that subject matter be referred to Arbitration? For example, the Rent Control Law provides for depositing the rent in court, how can that issue be handled by an Arbitrator if the lease agreement between the landlord and the tenant contains an Arbitration Clause and the dispute is referred to arbitrator. These are all the problems we very often encounter when it comes to invoking the law of Arbitration for resolving the disputes. The issue is to be carefully looked into and we need clarity in this regard.

Arbitration

In order to reduce the delay in courts and in the process of traditional adjudication mechanism, the Alternative Disposal Mechanism (ADR) was mooted. The dispute resolution through Conciliation, Arbitration and Mediation etc., is regarded as alternative mechanism to resolve the disputes between or among the parties in a defined legal relationship. The dispute resolution through Arbitration has occupied great significance in India in the recent past though it was successfully practiced in the developed nations like United States etc. The Arbitration and Conciliation Act, 1996 replacing the earlier act of 1940, governs the issue of dispute resolution through Arbitration. Any dispute arising out of a defined legal relationship can be resolved through Arbitration. In Arbitration Mechanism, the parties themselves will choose the Arbitrator; agree to the procedure for appointment of Arbitrator, the procedure to be followed by Arbitration, the place of Arbitration proceedings etc. It is all meant to provide the parties to resolve their dispute effectively and speedily without burdening the traditional courts.
Now-a-day, in all transactions and the pursuant documents, the Arbitration clause is incorporated mechanically. Admittedly, the Arbitration mechanism is useful for resolving the disputes and it is costly. In commercial transactions, where there is a genuine dispute and where the stakes are very high, the Arbitration mechanism is useful. But, the common man may not benefit much from the Arbitration mechanism as it is costly.
Section 7 of Arbitration and Conciliation Act, 1996 deal with the “Arbitration Agreement” and the same is extracted below:
“7.Arbitration Agreement. – (1) In this Part, “arbitration agreement” means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not.
(2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.
(3) An Arbitration agreement shall be in writing.
(4) An arbitration agreement is in writing if it is contained in –
(a) a document signed by the parties;
(b) an exchange of letters, telex, telegrams, or other means of telecommunications which provide a record of the agreement; or
(c) an exchange of statements of a claim and defence in which the existence of the agreement is alleged by one party and not denied by the other.
(5) The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the reference is such as to make that arbitration clause part of the contract.”
Whether an Arbitration clause will oust the jurisdiction of Company Law Board/Tribunal and the Company Court?
When there was a dispute between the company and other, between the company and its shareholder and between two companies, then, the issue will be complicated and stakes will be huge very often. The parties in a company dispute may require immediate orders having the binding nature. Generally speaking, there is no bar on referring a company dispute to an Arbitrator, but, the question is as to whether the Arbitration clause will oust the jurisdiction of Company Law Board/National Company Law Tribunal or the Company Court. This issue is to be carefully considered as otherwise, the dispute resolution process may get unnecessarily delayed on the basic question of legal sanctity of an Arbitration Clause in Company documents. This is very very significant issue. Company Law is very very complicated by its very nature and the question as to whether an Arbitration Clause will oust the jurisdiction of Company Law Board or the Company Court, is really interesting to consider.
Normally, unless there is a specific bar on the party concerned in providing an arbitration clause, the parties concerned may have an arbitration clause with regard to the contractual relation between or among them or otherwise. But, the arbitration clause may not come in the way of Company Law Board/Tribunal or Company Court in passing various orders exercising powers under the Companies Act, 1956. Because, the process of winding-up a company cannot be handled by Arbitrator. Again, even by agreement, the procedure prescribed for sanctioning a scheme of amalgamation or compromise can not be ignored and it can only be done by the Company Court as provided under the Act. Thus, the question very often comes is as to whether the Arbitration clause in a document or a company document will oust the jurisdiction of Company Law Board or the Company Court. Referring the issue of providing a arbitration clause between the company and members whatsoever and connecting the same to the right of the member/s to file an application under section 397/398 of the Act, the High Court of Delhi, in In the matter of Surendara Kumar Dhawan and another Vs. R.Vir and others, (1977) 47 Com Cases 277, was pleased to observe that “the shareholders of a company have a right to file a petition under section 397 or section 398 of the Companies Act, 1956, for relief against mismanagement or oppression, if the provisions of section 399 are satisfied. Their right is a statutory right which, by section 9, can not be ousted by a provision in the articles of association of the company. Any article providing that a difference between the company and its directors or between the directors themselves or between any members of the company or between the company and any person shall be referred to arbitration can not debar the jurisdiction of the court in the matter of a petition under section 397 or 398. The court will not stay a petition under section 397 and 398 on an application under section 397 or 398 on an application under section 34 of the Arbitration Act, 1940, based on the arbitration clause”. On the same lines, the High Court of Delhi, inO.P.Gupta Vs. Shiv General Fianance (P.) Ltd. and others, (1977) 47 Com Cases 279, was pleased to observe that“merely because there is an article in the articles of association of the company to the effect that any dispute between the company on the one hand and its members on the other will be referred to arbitration, the court will not stay a petition under section 397 and 398 of the Companies Act, 1956, for relief against mismanagement or oppression in the affairs of a company. Such an article can not be called into play for the purpose of staying proceedings under section 397 or section 398. The provisions of sections 397 and 398 and of section 434 give exclusive jurisdiction to the court and the matters dealt with thereby can not be referred to arbitration. No arbitrator can possibly give relief to the petitioner under sections 397 and 398 or pass any order under section 402 or section 403”. Again, on the same lines, it was reiterated by the Bombay High Court, in Manavendra Ckhitnis and another Vs. Leela Chitnis Studios P.Ltd. and others, (1985) 58 Com Cases 113,wherein the court was pleased to observe that “merely because there is an arbitration clause or an arbitration proceeding, or for that matter an award, the court’s jurisdiction under ss.397 and 398 of the Companies Act, 1956, can not stand fettered. On the other hand, the matter which can form the subject-matter of a petition under ss.397 and 398 cannot be the subject-matter of arbitration, for an arbitrator can have no powers such as are conferred on the court by sections such as s.402.”
The reason assigned by the courts as can perceived for saying that the Arbitration Clause will not oust the jurisdiction of Company Court is the requirement of “expertise”. This is very interesting to dealwith. Even in other matters, where there is a special set-up or law, can that subject matter be referred to Arbitration? For example, the Rent Control Law provides for depositing the rent in court, how can that issue be handled by an Arbitrator if the lease agreement between the landlord and the tenant contains an Arbitration Clause and the dispute is referred to arbitrator. These are all the problems we very often encounter when it comes to invoking the law of Arbitration for resolving the disputes. The issue is to be carefully looked into and we need clarity in this regard.

Wednesday, 26 November 2008

HOW GOOD IS YOUR VISITOR ETIQUETTE?

“Your manners are always under examination, and by committees little suspected, awarding or denying you very high prizes when you least think of it."
- Ralph Waldo Emerson

Well, the least suspected committee may well turn out to be your next employer and the prize, your ideal job! You never know. So, if you happen to travel a lot, hobnob with clients and visit other offices as part of your work schedule, ensure that your manners are impeccable and your visiting etiquette, intact.

So, how good is your visitor etiquette? Evaluate yourself by going through these simple but effective rules.

Be punctual and if you’re 5 minutes early, even better. This indicates that you respect other people’s time.

1. Don’t stroll into a place as if it’s your own.
2. Be polite to everyone you meet irrespective of if it’s the receptionist or the CEO.
3. If the office that you are visiting needs you to sign in, and take a visitor card, comply with the protocol. You could supply the receptionist with your visiting card.
4. While waiting, don’t try to chat up the receptionist, in case you’re feeling bored!
5. While waiting in someone’s office, don’t touch anything on his/her desk or around his/her room. Similarly, his/her reading material is his/her own, and is not there for you to kill time with.
6. Carry your own pens and note pads; it looks very unprofessional when you ask to borrow theirs.
7. Get your work done and leave. This is not a social visit so don’t grab every opportunity to chitchat.
8. On your way out, remember to thank the receptionist!

ENFORCING OFFICE EMAIL ETIQUETTEE

What is email etiquette? Well, here is a list of the top email etiquette rules you need to note.

1. Be concise and to the point.
Do not make an e-mail longer than it needs to be. Remember that reading an e-mail is harder than reading printed communications.

2. Answer all questions, and pre-empt further questions.
An email reply must answer all questions, and pre-empt further questions – If you do not answer all the questions in the original email, you will receive further e-mails regarding the unanswered questions, which will not only waste your time and your customer’s time but also cause considerable frustration.

3. Use proper spelling, grammar & punctuation.
This is not only important because improper spelling, grammar and punctuation give a bad impression of your company, it is also important for conveying the message properly. E-mails with no full stops or commas are difficult to read and can sometimes even change the meaning of the text.

4. Answer swiftly.
E-mails are sent as people wish to receive a quick response. Each e-mail should be replied to within at least 24 hours and preferably within the same working day.

5. Do not attach unnecessary files.
By sending large attachments you can annoy others and even bring down their e-mail system. Wherever possible try to compress attachments.

6. Use proper structure & layout.
Since reading from a screen is more difficult than reading from paper, the structure and lay out is very important for e-mail messages. Use short paragraphs and blank lines between each paragraph. When making points, number them or mark each point as separate to keep the overview.

7. Do not overuse the high priority option.
If you overuse the high priority option, it will lose its function when you really need it.

8. Do not write in CAPITALS.
IF YOU WRITE IN CAPITALS IT SEEMS AS IF YOU ARE SHOUTING. This can be highly annoying and might trigger an unwanted response in the form of a flame mail. Therefore, try not to send any email text in capitals.

9. Read the email before you send it.
A lot of people don’t bother to read an email before they send it out, as can be seen from the many spelling and grammar mistakes contained in emails. Apart from this, reading your email through the eyes of the recipient will help you send a more effective message and avoid misunderstandings and inappropriate comments.

10. Do not overuse Reply to All.
Only use Reply to All if you really need your message to be seen by each person who received the original message.

11. Do not use email to discuss confidential information.
Sending an email is like sending a postcard. If you don’t want your email to be displayed on a bulletin board, don’t send it. Moreover, never p make any libelous, sexist or racially discriminating comments in emails, even if they are meant to be a joke.

12. Use cc: field sparingly.
Try not to use the cc: field unless the recipient in the cc: field knows why they are receiving a copy of the message. Using the cc: field can be confusing since the recipients might not know who is supposed to act on the message.

WHEN TAKING UP A NEW JOB...

It could be your first job or your first day in a new environment, how would you behave, how would you like to dress? You got to remember whatever you do, all eyes will be on you.
Well here are few tips you can use to your benefit.

Get to work on time

While this might sound trivial, the fundamentals are that you should be at your desk and ready to work at the time your shift starts. While everyone understands that once in a while you could be caught in a traffic jam, just make sure you turning up late doesn’t turn into a habit.

Never under-dress
Ask around, check out what’s acceptable and not. While some offices demand a formal attire, casuals are acceptable in most offices nowadays. Your colleagues and co-workers shouldn’t feel that you have dressed too casually. Also keep yourself updated with the latest reforms in fashion for parties and weekends.

Try to keep your voice down

Most offices have cubicles as a work space; your sharing is always interesting for the other person, right? Wrong. The occasional laughing or cursing fits you throw can be extremely disruptive to your co-workers. Not only do they get enlightened with things they never wished, but also get disturbed in their normal routine.

Stay away from office gossips

There’s a fine line between polite conversations and downright nosiness. We guess you don’t want to get caught in the firing range of all the back stabbing and never ending office gossips. Staying away from all this will ensure you work with a proper frame of mind.

The office phone’s not a PCO

While most people blatantly use office phones calling everyone and anyone they know, it’s simply not right. Do limit your personal phone calls. There’s a difference in using the office phone in making an important appointment and calling your buddy and chatting for hours.

Leaving on time

It’s perfectly Ok to leave on time, simply don’t shut your computer down and sit by your desk waiting for the hour to strike. People notice these actions and it’s not appreciated. Make a point to leave after your scheduled time.

And if this is not your first ‘real’ job, and you are guilty of breeching any of the above tips, you definitely need a refresher course in office etiquette.

ARE YOU CONTRIBUTING TO OFFICE WOES?

Most people need a constant reminder that the workplace is not their personal apartment. So the next time you feel like making your presence known or felt, just watch the way you do it.

Here are few tips on how you can ensure no one feels you’re a pain at work.

Keep a tab on the volumes

While most workplaces allow their employees to listen to music as they work, make sure you’re humming or singing or choice of music doesn’t irritate the person next to you. A most common nuisance is the jarring volumes on your mobile phones. Set a pleasant ring tone on your mobile and at a level not too loud. Watch your volume even when you are thinking aloud or plainly rapping your fingers on your desk.

Watch those crumbs

After eating make it a point to clean up. Wipe up the crumbs and spills. Laying out paper napkins for your dining space will help in keeping the dining table clean. Don’t forget to put all wrappers and other wastes in the lunchroom garbage after you’ve finished. No one likes to eat in a dirty dining area.

Hygiene habits

make it a point to flush the toilet after use. Your crusade against water conservation should not result in others dying of stench. Simple things such as keeping the toilet floors clean, using the toilet bin go a long way in maintaining a clean and hygienic space.

Respect personal space

Don’t force your partner to draw enemy lines. Respect your colleagues’ space. Do not clutter. Put your personal stuff in drawers or cabinets. Also make it a habit of not peeping into your colleagues’ workspace. What they do is extremely confidential.

Whereabouts

leave a word about your whereabouts by jotting down or pinning a note to your desk. Leave a word where you are with those who need to know. Remember your colleague isn’t your secretary to take your messages.

OF HANDBAGS & BRIEFCASES

Ever been to lunch or a meeting, and wondered where to keep your handbag or briefcase?
Avoid fidgeting. Use these guidelines:

• At a meeting, place on the table only those writing materials, documents or folders that are essential. Samples, etc. can be produced at an appropriate time.

• At a social meal, nothing other than your food, your crockery and cutlery, and table decorations go n the table. If it’s a business meal, you may keep essential papers on the table, but remember this is not your office, and avoid a paper-spill over.

• Handbags and briefcases go on the floor, by the side of your chair. Cell-phones, which should either be shut off, or put in a silent/vibrator mode, should be in your bag or pocket, out of sight.

TIRED OF RUNNING ERRANDS FOR YOUR BOSS?


In an ideal workplace, the boss never asks a subordinate to do any personal work for him. Reality, however, is very different. Here’s how to deal with demanding bosses.

• If you are asked to do your boss’s personal chores and telling him outright that you can’t is beyond the limits of your courage, try putting it off and citing pressing office work as reason. Faced with this tactic a few times, even an insensitive person will take the hint.

• Another method is to tell him, in a casual manner—preferably away from the office environment, that official work doesn’t give you time to do any personal chores. He might not be thrilled about it, but a mixture of diplomacy and firmness should convince him.

• As a senior executive, don’t ask your juniors to run errands for you. You know they have a right to refuse, but you also know chances are they will not. Resentment doesn’t make for the best work environment!

GETTING YOUR FAX RIGHT

Yes, there is faxing etiquette as well, which is a very important aspect of business communication.

• When sending a fax, always include a cover sheet specifying whom the message is meant for.

• Type your message whenever possible. If you have to write it out, use capital letters.

• Corrections made using correction fluid show up as dark blotches, so make a photocopy, and use this to send the message.

• Many people receive their faxes on a computer, so make sure the paper is inserted the right side up. If it isn’t, the message can’t be read unless it’s printed out!

• Remember fax paper is expensive; don’t send out unnecessary or needlessly long messages. Also, call and check if the timing is convenient before sending out very long fax messages.

• Don’t fax personal or confidential messages unless you intend it to be office gossip. If such information has to be sent, do call ahead and inform the recipient so that he can personally retrieve it.

HOW GOOD IS YOUR VISITOR ETIQUETTE?


“Your manners are always under examination, and by committees little suspected, awarding or denying you very high prizes when you least think of it."
- Ralph Waldo Emerson

Well, the least suspected committee may well turn out to be your next employer and the prize, your ideal job! You never know. So, if you happen to travel a lot, hobnob with clients and visit other offices as part of your work schedule, ensure that your manners are impeccable and your visiting etiquette, intact.

So, how good is your visitor etiquette? Evaluate yourself by going through these simple but effective rules.

Be punctual and if you’re 5 minutes early, even better. This indicates that you respect other people’s time.

· Don’t stroll into a place as if it’s your own.

· Be polite to everyone you meet irrespective of if it’s the receptionist or the CEO.

· If the office that you are visiting needs you to sign in, and take a visitor card, comply with the protocol. You could supply the receptionist with your visiting card.

· While waiting, don’t try to chat up the receptionist, in case you’re feeling bored!

· While waiting in someone’s office, don’t touch anything on his/her desk or around his/her room. Similarly, his/her reading material is his/her own, and is not there for you to kill time with.

· Carry your own pens and note pads; it looks very unprofessional when you ask to borrow theirs.

· Get your work done and leave. This is not a social visit so don’t grab every opportunity to chitchat.

· On your way out, remember to thank the receptionist!

ENFORCING OFFICE EMAIL ETIQUETTEE

What is email etiquette? Well, here is a list of the top email etiquette rules you need to note.

1. Be concise and to the point.
Do not make an e-mail longer than it needs to be. Remember that reading an e-mail is harder than reading printed communications.

2. Answer all questions, and pre-empt further questions.
An email reply must answer all questions, and pre-empt further questions – If you do not answer all the questions in the original email, you will receive further e-mails regarding the unanswered questions, which will not only waste your time and your customer’s time but also cause considerable frustration.

3. Use proper spelling, grammar & punctuation.
This is not only important because improper spelling, grammar and punctuation give a bad impression of your company, it is also important for conveying the message properly. E-mails with no full stops or commas are difficult to read and can sometimes even change the meaning of the text.

4. Answer swiftly.
E-mails are sent as people wish to receive a quick response. Each e-mail should be replied to within at least 24 hours and preferably within the same working day.

5. Do not attach unnecessary files.
By sending large attachments you can annoy others and even bring down their e-mail system. Wherever possible try to compress attachments.

6. Use proper structure & layout.
Since reading from a screen is more difficult than reading from paper, the structure and lay out is very important for e-mail messages. Use short paragraphs and blank lines between each paragraph. When making points, number them or mark each point as separate to keep the overview.

7. Do not overuse the high priority option.
If you overuse the high priority option, it will lose its function when you really need it.

8. Do not write in CAPITALS.
IF YOU WRITE IN CAPITALS IT SEEMS AS IF YOU ARE SHOUTING. This can be highly annoying and might trigger an unwanted response in the form of a flame mail. Therefore, try not to send any email text in capitals.

9. Read the email before you send it.
A lot of people don’t bother to read an email before they send it out, as can be seen from the many spelling and grammar mistakes contained in emails. Apart from this, reading your email through the eyes of the recipient will help you send a more effective message and avoid misunderstandings and inappropriate comments.

10. Do not overuse Reply to All.
Only use Reply to All if you really need your message to be seen by each person who received the original message.

11. Do not use email to discuss confidential information.
Sending an email is like sending a postcard. If you don’t want your email to be displayed on a bulletin board, don’t send it. Moreover, never p make any libelous, sexist or racially discriminating comments in emails, even if they are meant to be a joke.

12. Use cc: field sparingly.
Try not to use the cc: field unless the recipient in the cc: field knows why they are receiving a copy of the message. Using the cc: field can be confusing since the recipients might not know who is supposed to act on the message.

WHEN TAKING UP A NEW JOB...

It could be your first job or your first day in a new environment, how would you behave, how would you like to dress? You got to remember whatever you do, all eyes will be on you.
Well here are few tips you can use to your benefit.

Get to work on time

While this might sound trivial, the fundamentals are that you should be at your desk and ready to work at the time your shift starts. While everyone understands that once in a while you could be caught in a traffic jam, just make sure you turning up late doesn’t turn into a habit.

Never under-dress
Ask around, check out what’s acceptable and not. While some offices demand a formal attire, casuals are acceptable in most offices nowadays. Your colleagues and co-workers shouldn’t feel that you have dressed too casually. Also keep yourself updated with the latest reforms in fashion for parties and weekends.

Try to keep your voice down

Most offices have cubicles as a work space; your sharing is always interesting for the other person, right? Wrong. The occasional laughing or cursing fits you throw can be extremely disruptive to your co-workers. Not only do they get enlightened with things they never wished, but also get disturbed in their normal routine.

Stay away from office gossips

There’s a fine line between polite conversations and downright nosiness. We guess you don’t want to get caught in the firing range of all the back stabbing and never ending office gossips. Staying away from all this will ensure you work with a proper frame of mind.

The office phone’s not a PCO

While most people blatantly use office phones calling everyone and anyone they know, it’s simply not right. Do limit your personal phone calls. There’s a difference in using the office phone in making an important appointment and calling your buddy and chatting for hours.

Leaving on time

It’s perfectly Ok to leave on time, simply don’t shut your computer down and sit by your desk waiting for the hour to strike. People notice these actions and it’s not appreciated. Make a point to leave after your scheduled time.

And if this is not your first ‘real’ job, and you are guilty of breeching any of the above tips, you definitely need a refresher course in office etiquette.

ARE YOU CONTRIBUTING TO OFFICE WOES?

Most people need a constant reminder that the workplace is not their personal apartment. So the next time you feel like making your presence known or felt, just watch the way you do it.

Here are few tips on how you can ensure no one feels you’re a pain at work.

Keep a tab on the volumes


While most workplaces allow their employees to listen to music as they work, make sure you’re humming or singing or choice of music doesn’t irritate the person next to you. A most common nuisance is the jarring volumes on your mobile phones. Set a pleasant ring tone on your mobile and at a level not too loud. Watch your volume even when you are thinking aloud or plainly rapping your fingers on your desk.

Watch those crumbs


After eating make it a point to clean up. Wipe up the crumbs and spills. Laying out paper napkins for your dining space will help in keeping the dining table clean. Don’t forget to put all wrappers and other wastes in the lunchroom garbage after you’ve finished. No one likes to eat in a dirty dining area.

Hygiene habits


make it a point to flush the toilet after use. Your crusade against water conservation should not result in others dying of stench. Simple things such as keeping the toilet floors clean, using the toilet bin go a long way in maintaining a clean and hygienic space.

Respect personal space


Don’t force your partner to draw enemy lines. Respect your colleagues’ space. Do not clutter. Put your personal stuff in drawers or cabinets. Also make it a habit of not peeping into your colleagues’ workspace. What they do is extremely confidential.

Whereabouts


leave a word about your whereabouts by jotting down or pinning a note to your desk. Leave a word where you are with those who need to know. Remember your colleague isn’t your secretary to take your messages.

Of Handbags & Briefcases

Ever been to lunch or a meeting, and wondered where to keep your handbag or briefcase?
Avoid fidgeting. Use these guidelines:

• At a meeting, place on the table only those writing materials, documents or folders that are essential. Samples, etc. can be produced at an appropriate time.

• At a social meal, nothing other than your food, your crockery and cutlery, and table decorations go n the table. If it’s a business meal, you may keep essential papers on the table, but remember this is not your office, and avoid a paper-spill over.

• Handbags and briefcases go on the floor, by the side of your chair. Cell-phones, which should either be shut off, or put in a silent/vibrator mode, should be in your bag or pocket, out of sight.

Tired Of Running Errands For Your Boss?


In an ideal workplace, the boss never asks a subordinate to do any personal work for him. Reality, however, is very different. Here’s how to deal with demanding bosses.

• If you are asked to do your boss’s personal chores and telling him outright that you can’t is beyond the limits of your courage, try putting it off and citing pressing office work as reason. Faced with this tactic a few times, even an insensitive person will take the hint.

• Another method is to tell him, in a casual manner—preferably away from the office environment, that official work doesn’t give you time to do any personal chores. He might not be thrilled about it, but a mixture of diplomacy and firmness should convince him.

• As a senior executive, don’t ask your juniors to run errands for you. You know they have a right to refuse, but you also know chances are they will not. Resentment doesn’t make for the best work environment!

Getting Your Fax Right

Yes, there is faxing etiquette as well, which is a very important aspect of business communication.

• When sending a fax, always include a cover sheet specifying whom the message is meant for.

• Type your message whenever possible. If you have to write it out, use capital letters.

• Corrections made using correction fluid show up as dark blotches, so make a photocopy, and use this to send the message.

• Many people receive their faxes on a computer, so make sure the paper is inserted the right side up. If it isn’t, the message can’t be read unless it’s printed out!

• Remember fax paper is expensive; don’t send out unnecessary or needlessly long messages. Also, call and check if the timing is convenient before sending out very long fax messages.

• Don’t fax personal or confidential messages unless you intend it to be office gossip. If such information has to be sent, do call ahead and inform the recipient so that he can personally retrieve it.

Wednesday, 2 July 2008

Time Management for Retirees

With life expectancy continuing to increase, some people are spending a third of their lives or more in retirement. That's too much time to waste. If you leave full-time employment, take your time management skills with you and leave the stress behind. This includes the following five strategies that will keep you mentally young and physically active.

1. Set personal goals, complete with deadlines and schedules. Don't retire from achievements simply because of your chronological age. Make up for the years you may have been procrastinating. Read the books you never got around to reading. See the sights you always wanted to see. Mend broken relationships and make new ones.

2. Continue using a planning calendar and schedule time for activities and people you love. Without the structure of the workplace it's necessary to build your own structure.

3. Schedule self-development activities. You're never too old to learn. The more active you keep your mind, the less chance there will be of memory loss.

4. Spend time with younger people; if you don't, your wisdom will die when you do. And surrounding yourself with younger people makes you feel younger in turn. Don't waste your life sharing complaints, aches and pains with older people.

5. Keep exercise as a priority. Lead an active lifestyle. Exercise affects memory as well as physical condition.

If you are still active in your career, plan now to ensure your retirement years will live up to your expectations. Plan more than simply finances. The important part of retirement is how you will be spending your time. Take inventory of the parts of your current job you like and those that you don't like and plan activities during retirement that incorporate the enjoyable parts. You will still need a sense of achievement, self-fulfillment and personal growth once you are retired. This may involve going back to school, starting your own business or doing volunteer work.