Hi Shekhar,
I know where you are coming from... being there a few times myself... therefore
personally, I believe that any human resources issues need to be resolved 
outside of
the TSM technical domain... one day you guys will need the activity report to
troubleshoot or solve a problem and you will not be able to go back and see what
happened.

If you allow me a friendly advice, set your Actlog Retention Period back to 7 
or 32,
and solve the human resources issue outside TSM or any other tool or business
process.

On the technical question, I don't know of any other way to delete the events
immediately, maybe the Tivoli developers can help you on this one.

Cheers.

Othonas