Lien

 

     Lien

 

•      Meaning: Right of the employee to hold a permanent post.

 

•      Employee will hold the lien while-

 

1.  Performing the duties of that post,

2.  On leave,

3.  On joining time,

4.  Under suspension and

5.  On deputation to Foreign Service.

 

•      At a time employee can hold the lien on one post only.

 

•      In case of surrender of posts, junior most should be reverted to lower grade because he/she will not have a post to hold lien.

 

•      In case the employee is joins other department by applying through proper channel, lien will be retained in parent department for 2 years.

 

•      Lien in the parent organization stand terminated soon after the employee acquires lien on a post in the new organization.

 

•      Lien in parent organization is terminated on joining new organization on immediate absorption basis.

 

•      Lien of the employee can be transferred from one permanent post to another permanent post.

----end----

Transfers

 

TRANSFERS

 

·        Transfers are three kinds:

 

1.     Own request transfer

2.     Mutual exchange Transfer

3.     Administrative grounds transfer

 

·        Own request transfer is also called one side transfer.

 

·        5 years service is required for own request transfer.

 

·        Seniority is assigned at the bottom of all permanent and temporary employees in the new division/Railway.

 

·        Five years condition is not applicable for:

o   Transfer on Spouse ground,

o   Transfer on account of having disabled child,

o   Transfer of Physically Handicapped employee,

o   Transfer of widow appointed on Compassionate Grounds and

o   Transfer on mutual exchange.

 

·        Priority register should be maintained.

 

·        Request for transfer is considered in recruitment grade only.

 

·        Should fulfill all educational and technical qualification prescribed for direct recruitment to that post.

 

·        Request transfer is not admissible in intermediate grade.

 

·        Mutual Exchange transfer is permitted in the same grade.

 

·        In the new unit senior employee will take the seniority position of junior employee and junior employee will retain his seniority position.

 

·        Mutual exchange in recruitment grade is permissible between SC & SC, ST&ST, UR/OBC & OBC/UR with the same required qualification.

 

·        For mutual transfer in recruitment grade is permissible only between Direct Recruits.

 

·        Administrative ground transfer is ordered in the public interest. Employee will not lose his/her seniority in new unit.

MCQ key points

1.     5 years service - required for Own Transfer.  However certain exemptions are there.

2.     Transfers are 3 Kinds. A. Own request B. Mutual exchange C. Administrative grounds

----end-----

Promotion Policy & Methods

 

 

 

PROMOTION POLICY AND METHODS

 

§  Meaning: Elevation of employee from lower grade to higher grade.

 

§  Shoulders higher responsibilities.

 

§  Subject to availability of clear vacancy and suitability of the employee.

 

§  Suitability is adjudged by conducting departmental test ( Written / oral / Trade Test)

 

§  Generally given as per seniority. But in LDCE and GDCE promotions are given on merit.

 

Differences between
LDCE	GDCE
Stands for Limited Departmental Competitive Examination	Stands for General Departmental Competitive Examination
Vacancies are carved out from either DR Quota or Promotional Quota	Vacancies are carved out DR Quota only
Eligibility: Employees in feeder cadre of concerned Department only	Eligibility: Employees in lower grade of any Department

                                                           

 

 

 

 

 

 

 

 

 

§  For GDCE employee should have same qualification prescribed for DR.

 

Post	Employees from Feeder Cadre Ratio
Selection	1:3
Non Selection	1:1

 

 

 

§   Railway Board is the authority to decide Selection & Non-selection posts.

 

§   Trade Test is conducted for promotion in Technician categories.

 

§   Employees found fit for promotion to the extent of assessed vacancies are:  

 

Posts	Placed on	Currency
Selection posts	Panel	2 Years
Non-selection & Trade Posts	Suitability Test	1 Year

                                         

 

 

 

 

§  For SC / ST candidates:

 

1.     Non Safety Posts  - Relaxation in qualifying Marks 

2.     Safety Posts - No relaxation in qualifying Marks.

Key points for MCQ

 

1.     LDCE stands for Limited Departmental Competitive Examination

2.     GDCE stands for General Departmental Competitive Examination

3.     Feeder cadre Ratio:

·        Selection Posts -  1:3

·        Non Selection Posts  -  1:1

4.     Selection Posts - Panel - Currency is 2 Years

5.     Non Selection Posts - Suitability Test - Currency is 1 Year

 

                                                   ----end---

 

Deputation

 

 

Deputation

·        Meaning: Transfer an employee to other Governments, departments, Corporations etc.

 

·        Either on Own request or on Administrative grounds.

 

·        During deputation employee can draw the pay and allowances of his post or Pay and allowances of deputation post.

 

·        If the employee draws pay and allowances of his own post, he is eligible for Deputation allowance.

 

Station	Deputation Allowance
	% of Basic Pay	Maximum
Same Station	5%	Rs. 4,500
Out of Station	10 %	Rs. 9,000

 

·        Maximum period - 5 Years . Can be extended for 2 Years.

 

·        Cooling period between two deputations: 3 Years

 

MCQ Key points:

 

1.     Deputation maximum period - 5 years (extended for 2 years)

2.     Cooling period between two deputations: 3 Years

3.     Two choices:

A.    Draw the pay and allowances of own post

                              or 

B.     Draw the pay and allowances of Deputation post

                          

4.     If draws the pay & allowances of own post, he is eligible of Deputation Allowance as follows.

A.    Same station: 5 % of Basic Pay (Maximum Rs.4,500)

B.     Outside Station:  10 % of Basic Pay (Maximum Rs.9,000) 

---end--

Fixed Cost and its importance in BEP

Fixed Cost & its importance in BEP

• Meaning of Fixed Cost :  A cost does not change with an increase or decrease in the Goods produced.

• In General, companies can have two types of costs, i.e., Fixed Costs and Variable Costs.

• Also called as Indirect cost or Overhead costs.

• Examples:  Lease Rentals, Salaries, Insurance, Taxes, Interest expense, Depreciation etc. 

• All Sunk costs are Fixed Costs.  But, all fixed costs are not sunk costs. 

• Sunk cost: Money that has already been spent and which cannot be recovered.  Examples are Machinery Cost, Lease expense, etc.

• A fixed cost per unit is always variable; Whereas Variable cost per unit is always fixed.

• Segregation of Total Costs into fixed Costs and Variable costs helps the Management to decide the scale of Production and Breakeven analysis.  

• Example: A company Produces Pens.  Their fixed costs are Rs. 10000 and Variable costs are Rs. 10 per Pen. Selling price per pen is Rs. 120.  Find the Total cost for 100 Pens and 200 Pens and Profit on two options. 

100 Units

Costs	No of Pens	Rate per Unit	Total
Fixed	100	100	10000
Variable Costs	100	10	1000
Total costs	100	110	11000
Selling Price	100	120	12000
Profit	100	10	1000

200 Units:

Costs	No of Pens	Rate per Unit
Fixed	200	50	10000
Variable Costs	200	10	2000
Total	200	60	12000
Selling price	200	120	24000
Profit	200	60	12000

• From the above, the Fixed Cost per Unit is changed from Rs. 100 to Rs.50 when Production was increased from 100 units to 200 Units.  Whereas, Variable cost remained fixed though production was increased from 100 units to 200 units. 

So, when change in the Production:

• Fixed cost per unit is variable  (though Total Fixed cost is fixed)

• Variable cost per unit is fixed. (though Total Variable cost is variable)

• The segregation of Total costs into Fixed Costs and Variable costs helps the firms to analyze the breakeven analysis. (Where there is no profit, no loss) and increase their profit capacity.

BEP –Break Even Point = Fixed Costs / Sales Price per Unit – Variable Cost per unit 

• In the above example 100 units production level, BEP is 10000/120 – 10 = 91 Units.   

• That means at the point of 91 units, there is no profit or no loss.

At 91 units

Costs	No of Pens	Rate per Unit
Fixed	91	109.90	10000
Variable Costs	91	10	910
Total	91	119.90	10911
Selling price	91	120	10920
Profit	91	0.10	9

Profit Rs.9 is almost negligible.  Hence at the production of 91 units, there is no profit, and there is no loss.   So Break Even Point (BEP) is 91 units 

Key Points for MCQ 

1. BEP stands for Break Even Point 

 

2. Fixed cost - other names are Overhead cost or Indirect Cost 

 

3. All Sunk costs are Fixed Costs.  But, all fixed costs are not sunk costs. 

 

4. Sunk cost: Money that has already been spent and which cannot be recovered.  Examples are Machinery Cost, Lease expense, etc.

 

5. A fixed cost per unit is always variable; 

6. Whereas Variable cost per unit is always fixed. 

 

7. BEP formula = Fixed Costs / Sales Price per Unit – Variable Cost per unit

###