This has been an age old problem in India. There are different dimensions to this issue. As HR professional, we need to look at it in different perspectives as Business Partner and at the same time a socialist as well.
In the first place as a strategic business partner, you need to see what is the nature of industry, whether it is labour intensive, operation in one roof (Factory set-up), how long you stretch if you lay down a stringent criteria to block the entry of unqualified. At the same time, as HR professional, it is also our responsibility to see that cordial atmosphere prevails in the surrounding area which should be conducive for the business even at the cost of some compromises in the overall interest of the business. We should try to deal with the people in a fair manner which would be good for the industry in the long run.
Regards
Sahayaraj

From India, Durgapur
Yes moving out of the company is also good thing, considering UP cops are big big corrupts!
From India, Pune
hi payal,
my suggestion is that your friend leaves the organisation as soon as possible unless he is ready to turn a bind-eye on this.i know it sounds stupid and foolish but i have my reason.
lets have a look,"his managers behaviour went sour and now his job is at stake"....i honestly dont know how he can convince his managers otherwise because these managers are clearly influenced and directed by the political leaders.."Now the situation is that even political leaders are involved actively". i'm sure you very well know the complications and how time involving it is when politicians are in the picture.
hope it help!!

From India, Delhi
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