Professional Documents
Culture Documents
HR Roles & Functions
HR Roles & Functions
Unit - I
1
DEFINITION OF HRD
A set of systematic and planned activities
designed by an organization to provide its
members with the necessary skills to meet current
and future job demands.
2
EMERGENCE OF HRD
Employee needs extend beyond the training
classroom
Includes coaching, group work, and problem
solving
Need for basic employee development
Need for structured career development
3
RELATIONSHIP BETWEEN HRM AND HRD
Human resource management (HRM)
encompasses many functions
Human resource development (HRD) is just one
of the functions within HRM
4
PRIMARY FUNCTIONS OF HRM
Human resource planning
Equal employment opportunity
Staffing (recruitment and selection)
Compensation and benefits
Employee and labor relations
Health, safety, and security
Human resource development
5
SECONDARY HRM FUNCTIONS
Organization and job design
Performance management/ performance appraisal
systems
Research and information systems
6
HRD FUNCTIONS
Training and development (T&D)
Organizational development
Career development
7
ORGANIZATIONAL DEVELOPMENT
The process of improving an organization’s
effectiveness and member’s well-being through
the application of behavioral science concepts
8
CAREER DEVELOPMENT
Ongoing process by which individuals progress
through series of changes until they achieve their
personal level of maximum achievement.
Career planning
Career management
9
LEARNING & PERFORMANCE
10
CRITICAL HRD ISSUES
Strategic management and HRD
The supervisor’s role in HRD
Organizational structure of HRD
11
STRATEGIC MANAGEMENT & HRD
Strategic management aims to ensure
organizational effectiveness for the foreseeable
future – e.g., maximizing profits in the next 3 to 5
years
HRD aims to get managers and workers ready for
new products, procedures, and materials
12
SUPERVISOR’S ROLE IN HRD
Implements HRD programs and procedures
On-the-job training (OJT)
Coaching/mentoring/counseling
Career and employee development
A “front-line participant” in HRD
13
ORGANIZATIONAL STRUCTURE OF HRD DEPARTMENTS
14
SAMPLE HRD JOBS/ROLES
Executive/Manager
HR Strategic Advisor
HR Systems Designer/Developer
Organization Change Agent
Organization Design Consultant
Learning Program Specialist
Instructor/Facilitator
Individual Development and Career Counselor
Performance Consultant (Coach)
Researcher
15
HR’S STRATEGIC ROLE
Employees as organisation’s assets
Driving business strategy
Spanning organizational functions
HRD Deliverables:
Performance
Capacity Building
Problem solving/consulting
Org. change and development
16
STRATEGIC HRD
Integration of HRD with strategy formulation and
implementation
Long-term view of HR policy
Horizontal integration among HR functions
Vertical integration with corporate strategy
SHR as core competitive advantage
17
DEFINITION OF HR ROLES
18
IMPORTANCE OF HUMAN RESOURCES
Human resources are an important part of the
value chain
They can be unique, and thus a source of core
competence in an organization
If a core competence is related to HR, then HR
can contribute to competitive advantage
19
STRATEGIC ANALYSIS OF HR: PURPOSE
People related strategies may be important to new
strategy (for example, a change in the way the
organization does business)
In today’s technologically complex business world,
analysis of existing human resources is important
in order to determine what options are available
The network of people within an organization and
their relationships with people can be an important
part of strategy
20
HR AND SUSTAINABLE COMPETITIVE ADVANTAGE
22
COMPETING IN THE GLOBAL ECONOMY
New technologies
Need for more skilled and educated workers
Cultural sensitivity required
Team involvement
Problem solving
Better communications skills
23
TRAINING & HRD PROCESS MODEL
24
High Performance Organizations
25
Design Traditional
High Performance Organizations
Components Multi-skilled team players
Organizations
People Dispersed
Narrow expertise
Decision Systems
Rugged individuals Open
Human Resources
Structure Centralized Realistic job interviews
Values & Culture Closed Continuous learning
Promote compliance
Routine behaviors
HUMAN RESOURCES MANAGEMENT
26
RECRUITMENT
27
RECRUITMENT
The process by which a job vacancy
is identified and potential employees are notified.
The nature of the recruitment process
is regulated and subject
to employment law.
Main forms of recruitment through advertising in
newspapers, magazines, trade papers and internal vacancy
lists.
28
RECRUITMENT
Job description – outline of the role
of the job holder
Person specification – outline
of the skills and qualities required
of the post holder
Applicants may demonstrate their suitability through
application form, letter or curriculum vitae (CV)
29
SELECTION
30
SELECTION
The process of assessing candidates and
appointing a post holder
Applicants short listed –
most suitable candidates selected
Selection process –
varies according to organisation:
31
SELECTION
Interview – most common method
Psychometric testing – assessing the personality of the applicants – will
they fit in?
Aptitude testing – assessing the skills
of applicants
In-tray exercise – activity based around what the applicant will be doing,
e.g. writing a letter to a disgruntled customer
Presentation – looking for different skills
as well as the ideas of the candidate
32
EMPLOYMENT LEGISLATION
33
EMPLOYMENT LEGISLATION
Increasingly important
aspect of the HRM role
Wide range
of areas for attention
Adds to the cost of the
business
34
DISCRIMINATION
Crucial aspects
of employment legislation:
Race
Gender
Disability
35
DISCIPLINE
36
DISCIPLINE
Firms cannot just ‘sack’ workers
Wide range of procedures and steps
in dealing with workplace conflict
Informal meetings
Formal meetings
Verbal warnings
Written warnings
Grievance procedures
Working with external agencies
37
DEVELOPMENT
38
DEVELOPMENT
Developing the employee
can be regarded as investing
in a valuable asset
A source of motivation
A source of helping the employee fulfil potential
39
TRAINING
40
TRAINING
Similar to development:
Provides new skills for the employee
Keeps the employee up to date
with changes in the field
Aims to improve efficiency
Can be external or ‘in-house’
41
***Good Afternoon Budding Managers***
42
ROLE OF HR MANAGER 8/1/13
Conscience Role
Counsellor
Mediator
Spokesman
Problem solver
Change Agent
- As a Specialist
- As a Source of help and also a controller
43
DEPARTMENT OF HUMAN RESOURCES
ORGANIZATIONAL CHART
DISCIPLINARY
COMMITTEE
ADMINISTRATIVE
ASSISTANT
CHANGE
MANAGEMENT
-Staff Recruitment
-Staff Training & -Trade unions
-Staff Loans -Statutory
Development -Team Building
-Retirement Benefits Deductions- This is a new
-Staff Deployment -CSR Activities
-Medical Cover NSSF,NHIF strategy by large
& Transfers -HIV/AIDS
-Sexual Harassment -Overtime Claims Corporate entities
-Staff Performance -Leave Allowances -Tax Returns
-Staff welfare to manage many
Management -Daycare for Staff -Pay slips
-Staff Canteen Staff in many
-Promotions Children production
-Staff Clinic Departments /
-
-Staff Health, Safety Branches
& Security
44
HR ORGANIZATION STRUCTURE
45
TYPES OF ORGANISATIONAL STRUCTURE
46
H R DEPARTMENT IN LINE
ORGANIZATIONAL STRUCTURE
C.E.O.
H R Manager
Employment Officer Training Officer Wage & Salary Officer Welfare Officer
47
H R DEPARTMENT IN FUNCTIONAL
ORGANIZATIONAL STRUCTURE
C.E.O.
H R Manager
Employment Officer Training Officer Wage & Salary Officer Welfare Officer
48
H R DEPARTMENT IN LINE & STAFF
ORGANIZATIONAL STRUCTURE
C.E.O.
H R Manager
Employment Officer Training Officer Wage & Salary Officer Welfare Officer
Line Function
Staff Function
49
H R DEPARTMENT IN DIVISIONALISED
ORGANIZATIONAL STRUCTURE
C.E.O.
H R Manager
Employment Officer Training Officer Wage & Salary Officer Welfare Officer
G.M.
Project A
Project B
Project C
51
Human Resource
Development
52
SIGNIFICANCE OF HRD
53
CHARACTERISTICS OF HR
HR is complete humanbeing, emp enter with their
own values and sentiments.
Competencies are developed through HRD
Programmes.
Background, expectations and values vary from
person to person, hence every one should be
managed differently.
54
FEATURES OF HRD
HRD is a systematic approach
HRD is a continuous Process approach
HRD is multidisciplinary
HRD is embodied with techniques and processes
HRD develops skills at all fn levels
55
SCOPE FOR HRD
Recruiting with possibilities of Dev.
Selecting to meet future demands
Analysing, Appraising & developing
performance of employees
Training to acquire new skills
Planning for succesion
Learning through Group dynamics, Job rotation,
Enlargement & empowerment.
56
NEED FOR HRD
57
HRD OBJECTIVES
To Prepare the employee to meet the present and
changing future job requirements.
To prepare for higher level jobs.
To enhance Orgn. Capabilities.
To ensure smooth and efficient working of the
Orgn.
58
HRD FUNCTIONS
Performance Appraisal
Employee Training
Executive Development
Career Planning & Development
Succession plng
Involvement in Quality Circles
Worker’s Participation in Mgt
59
TECHNIQUES/ METHODS/INSTRUMENTS
Performance App / Potential Appraisal
Career Plng / CareerDevelopment
Employee Training / Executive development
Organizational Change / Orgn Development
WPM / Qly Circles
Employee Councelling / Team work / Role Analysis
Monetary rewards/Employee Benefits/Grievance
Mechanism
60
HR Strategies &
Organizational
Strategies
61
“WHAT IS STRATEGY”?
63
STRATEGY – AN OVERLOOK
SWOT Analysis.
Formulation of Strategies.
Selecting the best Strategy.
Strategy Implementation.
Strategy Evaluation and Control.
64
LEVELS IN STRATEGIES
Corporate Level Strategies.
Stability Strategy.
Growth Strategies.
Concentration Strategies.
Merger and Acquisiton Strategies.
**Horizontal Integration. ( Related Diversification )
**Conglomerate Diversification. ( Diversification into unrelated activity )
**Joint Ventures. ( Two firms carry out a specific project )
Retrenchment Strategies. ( Liquidation & Divestment )
65
International HRM (
Global
Environment )
66
INTERNATIONAL HRM ( GLOBAL ENVIRONMENT)
67
INTERNATIONAL HRM ( GLOBAL ENVIRONMENT)
68
SOURCES OF GLOBAL RECRUITMENT
Parent Company Nationals.
69
GLOBAL SELECTION APPROACH
Ethnocentric Approach
Polycentric Approach
Geocentric Approach
## Concept of Expatriates
70
COMPENSATION IN GLOBAL ENVIRONMENT
Expatriate Pay
Gratuity
Allowances
Taxation
71
UNIT II
73
HUMAN RESOURCE PLANNING
Human Resource Planning (HR Planning) is both a process and a set of plans.
It is how organizations assess the future supply of and demand for human resources.
An effective HR plan also provides mechanisms to eliminate any gaps that may exist
between supply and demand. Thus, HR planning determines the members and types of
employees to be recruited into the organization or phased out of it.
74
HRP PROCESS
Strategic Planning Human Resource Demand Human Resource Supply
Technological
Technologicalforecasts
forecasts Annual
Annualemployment
employment Existing
Existingemployment
employmentinventory
inventory
Economic forecasts
Economic forecasts requirements
requirements After application of expected
After application of expected
Market Compared
Marketforecasts
forecasts Numbers
Numbers loss
lossand
andattrition
attritionrates
rates
Organizational
Organizationalplanning
planning Skills
Skills with
Investment planning
Investment planning Occupational
Occupationalcategories
categories
Annual
Annualoperating
operatingplans
plans
If none
Variances
Variances End
End
IfIfsurplus
surplus IfIfshortage
shortage
Decisions
Decisions Decisions
Decisions
Action
Layoff,
Layoff, Overtime,
Overtime,
Decisions
retirement,
retirement, recruitment,
recruitment,
etc.
etc. etc.
etc.
End
End End
End
75
THE HRP PROCESS
All effective HR planning shares certain features. It is generally agreed that HR
planning involves four distinct phases or stages:
Situation
Situation analysis
analysis or
or environmental
environmental scanning
scanning
Forecasting
Forecasting demand
demand for
for human
human resources
resources
Analysis
Analysis of
of the
the supply
supply of
of human
human resources
resources
Development
Development of
of plans
plans for
for action
action
76
WHAT IS HRP?
HRP is a sub-system of total organizational planning.
HRP facilitates the realization of the company’s objectives
for the future by providing the right type and number of
personnel
HRP is also called Manpower planning, Personnel planning
or Employment planning
77
BENEFITS OF HRP
Create reservoir of talent
Prepares people for future
Expand or Contract
Cut Costs
Succession Planning
78
FORECASTING TECHNIQUES
Managerial Judgment
Ratio trend analysis
Work Study Techniques
Delphi Technique
Flow Models
Others
79
FACTORS IN DEMAND FORECASTING
80
JOB ANALYSIS
81
JOB ANALYSIS
Skill Range
Does the job cover a reasonable but not too extensive
range of different tasks?
Are there opportunities to use knowledge and skills
associated with effective performance of the job?
Can the individual make full use of their skills and
develop their skill base?
82
JOB ANALYSIS
Job Purpose
Is the purpose of the job clearly and unequivocally
Is its contribution to the organisation’s objectives
evident?
Is its contribution to its dept obvious?
Is the post holder responsible for the successful
completion of the whole job?
Do the internal systems help the post holder do the
job?
83
JOB ANALYSIS
Relationships
Are the formal relationships clearly specified and
related to the achievement of the objectives?
Is there opportunity to develop working relationships
within and across the department’s boundaries?
Are colleagues available with whom the post holder
can discuss professional issues
84
JOB ANALYSIS
Job Outcomes:
Can the post holder see the result of their efforts?
Can the results of the post holders efforts be
recognised?
Does the post holder have the opportunity to influence
Rewards
Are the rewards appropriate and obtainable?
Are the rewards linked directly with the performance
of the post holder?
85
STEPS IN JOB ANALYSIS
87
JOB DESCRIPTION
A job description
Clarifies work functions and reporting relationships,
helping employees understand their jobs.
Aids in maintaining a consistent salary structure.
Aids in Performance evaluations.
Is a set of well written duty statements containing
action words which accurately describe what is being
done.
88
Duty statements
should focus on primary, current, normal, daily duties and
responsibilities of the position (not incidental duties, an employee’s
qualifications or performance, or temporary assignments). Related or
similar duties should be combined and written as one statement.
89
WRITING A JD
90
WRITING A JD
Frequencies should be identified in multiples of 5%.
Duties that take less than 5% of the officer's time should
not be shown as separate but grouped with other duties.
91
WRITING A JD : PRIMARY FUNCTION
93
REASONS FOR CONDUCTING JOB
ANALYSIS
Staffing – would be haphazard if recruiter did not know
qualifications needed for job
Training and Development – if specification lists a
particular knowledge, skill, or ability, and the person
filling the position does not possess all the necessary
qualifications, training and/or development is needed
Compensation and Benefits – value of job must be known
before dollar value can be placed on it
94
REASONS FOR CONDUCTING JOB
ANALYSIS (CONTINUED)
Safety and Health – helps identify safety and health considerations
Employee and Labor Relations – lead to more objective human
resource decisions
Legal Considerations – having done job analysis important for
supporting legality of employment practices
95
CONDUCTING JOB ANALYSIS
96
HR Processes – An Employee Life Cycle
97
ROUTINE HR FUNCTIONS
Manpower planning
Recruitment and Selection
Training & Development
Appraisals – Performance Management
Transfers / Promotions
Compensation and Benefits
98
NON ROUTINE HR FUNCTIONS
Culture Management
Change Management
Cross Cultural Issue Management
HR Audit
HR Accounting
Outsourcing of HR
VRS / Existing Employee Management / Succession
Planning
99
HR PROCESS MAPPING
100
Definitions
101
MANPOWER PLANNING
Business Needs
Financial Feasibility
Future Plans
Brand Name
102
MANPOWER PLANNING
103
RECRUITMENT AND SELECTION PROCESS
Business Plan
Related HR Plan
Competencies
People
Compensation and Benefits
Numbers
Current : Budgeted and Actual
Future : Short Term and Long Term
Three Conditions
Current = Future
Maintenance B = A
Vacancy Filling B > A
Current > Future
Redundancy Planning
Current < Future
Recruitment Plan
104
RECRUITMENT AND SELECTION PROCESS
Recruitment Plan
Position Description/Specifications
Person Specifications
Method of Recruitment
Internal
Reference/Promotions/Transfers
External
Advertisement
Where to advertise
Writing an advertisement
Consultants
Retainer
Multiple
Internet
Receiving Applications and Screening/Filing
105
RECRUITMENT AND SELECTION PROCESS
Screening /Short-listing
Coding
Computer aided screening
Selection Tools
Written Tests
Group Discussions
Interviews
Assessment Centres
Reference Checks
Offer
Joining
106
WHY OBJECTIVE SETTING?
Gives direction to job.
Helps focus on important job areas.
Assists review and change in job emphasis.
Provides a basis for appraisal, counselling and
feedback.
Increases mutual job understanding with superior.
107
HRS ROLE IN PERFORMANCE MANAGEMENT
Delivering time-lines
Ensuring timely adherence
Auditing the objectives jointly with line
managers
Ensuring objectives are in line with
organisational goals
Requesting modification if required
108
TRAINING & DEVELOPMENT AND
PERFORMANCE APPRAISAL
UNIT III
109
INTRODUCTION
Performance appraisal is an evaluation of the
performance of an employee against the job
standards in terms of quantitative, qualitative and
behavioural aspects at the workplace.
A successful PA process involves explaining the
job, communicating expectations, observing and
documenting behaviour and providing frequent
informal feedback.
110
WHY PA ?
111
PERFORMANCE APPRAISAL AND TRAINING NEEDS
112
PERFORMANCE APPRAISAL AND TRAINING NEEDS
113
PERFORMANCE APPRAISAL AND TRAINING NEEDS
114
PERFORMANCE APPRAISAL PROCESS
Done on certain criterions or standards fixed in
advance.
Employee should be aware of those yardsticks.
Steps in PA
Establishing standards
Communicating stds. to employees
Measuring actual performance.
Comparing actual with stds.
Discussing reports with employees
Taking corrective action
115
PERFORMANCE APPRAISAL METHODS
116
PERFORMANCE APPRAISAL METHODS
Group Appraisal
Ranking
Paired comparison
Forced distribution
Performance tests
Field review technique
117
Performance Appraisal Methods
Modern methods
1. Assessment centre
2. Human resource accounting – costs &
contribution
3. Behaviorally anchored rating scale
4. MBO
5. 360º performance apparaisal
119
CRITICAL INCIDENT METHOD
120
CHECKLIST METHOD
Is employee regular
Y/N
Is employee helpful
Y/N
121
WEIGHTED CHECKLIST METHOD
122
FORCED CHOICE METHOD
Criteria Rating
123
GRAPHIC RATING SCALE
• Continuous Rating Scale
• Discontinuous Rating Scale
124
DISCONTINUOUS RATING SCALE
Indifferent
Enthusiastic
Attitude
No Interested Very
Interest enthusiastic
125
BARS( BEHAVIORALLY ANCHORED RATING SCALE)
126
MBO PROCESS
127
PERFORMANCE APPRAISAL METHODS
Group Appraisal
Ranking
Paired comparison
Forced distribution
Performance tests Field review technique
128
RANKING METHOD
Employee Rank
A 2
B 1
C 3
D 5
E 4
129
PAIRED COMPARISON METHOD
A B C D E Final Rank
A - - - + + 3
B + - - + + 2
C + + - + + 1
D - - - - + 4
E - - - - - 5
No of Positive evaluation
Total no. of evaluation * 100 = employee superior evaluation
130
FORCED DISTRIBUTION METHOD
No.
of
employees
Leadership ^ ^
Communication ^ ^
Interpersonal skills ^ ^
Decision making ^ ^ ^
Technical skills ^ ^ ^
Motivation ^ ^ ^
132
PERFORMANCE CRITERIA FOR EXECUTIVES
133
FOR MIDDLE LEVEL MANAGERS
Departmental performance
Coordination among employees
Degree of upward communication from supervisors
Degree of clarity about corporate goals and policies
134
FOR SUPERVISORS
135
COMPENSATION MANAGEMENT
UNIT - IV
136
A DEFINITION . . .
All forms of
financial return,
tangible services and
benefits
that employees receive as part of their
employment relationship
137
COMPONENTS OF A TOTAL COMPENSATION
PROGRAM - 1
Financial
Direct
wages, salaries, commissions, bonuses
Indirect
insurance plans
life, health, dental, disability
social assistance benefits
retirement plans, social security, workers’ comp
paid absences
vacations, holidays, sick leave
138
COMPONENTS OF A TOTAL COMPENSATION
PROGRAM - 2
Non-Financial
The Job
interesting, challenging, responsible
opportunity for recognition, advancement
feeling of achievement
Job Environment
policies, supervision, co-workers, status symbols,
working conditions, flextime, compressed work week,
job sharing, telecommuting, flexible benefits programs
139
FACTORS THAT INFLUENCE WAGE
LEVELS
Conditions of
Labor Market Compensation
Policy of
Organization
Area Wage
Rates Worth of
Job
Cost of WAGE
Living
MIX Employee’s
Relative Worth
Collective
Bargaining
Employer’s
Legal Ability to Pay
Requirements
140
STEP 1 - ESTABLISH GENERAL WAGE LEVEL FOR
ORGANIZATION
Factors to consider:
Other firm’s rates
Union demands
Cost-of-living changes
Firm’s ability to pay
141
STEP 2 - ESTABLISH WAGE STRUCTURE
(THE PAY FOR EACH JOB)
Employ a job evaluation system
Ranking
Job Classification
Point System
Factor Comparison
Results:
pay grades
rate ranges
142
STEP 3 - ESTABLISH PAY FOR EACH INDIVIDUAL ON EACH JOB
Inputs:
Performance appraisal information
Seniority system
143
A PAY MODEL -- 3 BASIC COMPONENTS
I. Compensation Objectives
II. Foundation Concepts
III. Techniques for Management
144
A PAY MODEL
I. COMPENSATION OBJECTIVES - 1
Organization Performance
Labor Costs
Attitudes and Behaviors
Laws and Regulations
145
A PAY MODEL
I. COMPENSATION OBJECTIVES - 2
Influence forms & procedures
For example:
if objective is pay for performance, emphasize
incentives, merit pay plans
if objective is stable, experienced workforce,
emphasize seniority-based pay
146
A PAY MODEL
II. FOUNDATION CONCEPTS
Equity
External Equity
Comparison: outside organization
Internal Equity
Comparison: inside organization, among jobs
Employee Equity
Comparison: individuals doing same job for
same organization
147
A PAY MODEL
III. TECHNIQUES FOR MANAGEMENT
A. Pay Level
B. Pay Structure
C. Individual Pay Rates
148
A PAY MODEL
III. TECHNIQUES FOR MANAGEMENT
A. PAY LEVEL
149
MARKET WAGE AND SALARY SURVEYS
Select key jobs.
Determine relevant labor market.
Select organizations.
Decide on information to collect:
wages/benefits/pay policies.
Compile data received.
Determine wages and benefits to pay.
150
MARKET WAGE LEVELS
evel
L
a ge
’s W
n y A
e vel
mpa g eL
a vel
Co t W L e
a rke W a ge
M B’s
n y
m pa
C o
155
JOB CLASSIFICATION SYSTEM
156
POINT SYSTEM
157
FACTOR COMPARISON SYSTEM
158
HAY PROFILE METHOD
159
A PAY MODEL
III. TECHNIQUES FOR MANAGEMENT
C. INDIVIDUAL PAY RATES
160
WAGE CURVE
161
COMPONENTS OF THE WAGE STRUCTURE
162
PAY GRADES
163
ELEMENTS OF THE RATE RANGE
164
COMMON PAY GRADE RANGES
Laborers & Trades, up to 20%
Clerical, Technical, Para-professional, 15-49%
First Level Supervisors, Professionals 30-50%
Middle and Senior Level Management, 40-100%
165
MONITORING COMPENSATION COSTS
Compra-Ratio
Formula:
166
HOW WOULD YOU HANDLE OUTLIERS?
An individual whose current pay is beyond
the maximum of the pay grade for his/her
job
167
FEDERAL WAGE LAWS
Davis-Beacon Act of
1931
Walsh-Healy Act of
1936
Fair Labor
Standards Act of
1938
168
NONEXEMPT EMPLOYEES
169
EXEMPT EMPLOYEES
170
COMPARABLE WORTH
171
WAGE-RATE COMPRESSION
172
INDUSTRIAL RELATIONS
Unit V
173
MEANING
Simply the relationship between employer and employee is called
Industrial Relation.
But it also covers the relation between employer vs. employer and
employees vs. employees.
To safeguard the interests of the all the parties, harmonious
relationship is necessary for both employers and employees of the
production.
In order to maintain good relationship with the employees, the main
functions of every organization should be to avoid any dispute with
them or settle it as early as possible, so as to ensure industrial peace
and harmony with higher productivity. The Industrial Relation
relations is also called as labor - management, employee-employers
relations.
174
174
175
175
DEFINITIONS
Industrial Relation deals with the manpower of the
enterprise and the management which is concerned with
– whether machine operator, skilled worker or manager.
Industrial Relation is a relation between employer and
employees, employees and employees and employees
and trade unions. and the “process by which people and
their organizations interact at the place of work to
establish the terms and conditions of employment.” -
Industrial dispute Act 1947
176
176
IMPORTANCE OF INDUSTRIAL RELATIONS
The healthy industrial relations are key to the progress and
success. Their significance may be discussed as under-
177
177
2. Reduction in Industrial Disputes – Good industrial
relation reduce the industrial disputes. Disputes are
reflections of the failure of basic human urges or
motivations to secure adequate satisfaction or expression
which are fully cured by good industrial relations. Strikes,
lockouts, go-slow tactics, gherao and grievances are some of
the reflections of industrial unrest which do not spring up in
an atmosphere of industrial peace. It helps promoting co-
operation and increasing production.
178
178
3. High morale – Good industrial relations improve the
morale of the employees. Employees work with great zeal
with the feeling in mind that the interest of employer and
employees is one and the same, i.e. to increase production.
Every worker feels that he is a co-owner of the gains of
industry. The employer in his turn must realize that the gains
of industry are not for him along but they should be shared
equally and generously with his workers. In other words,
complete unity of thought and action is the main
achievement of industrial peace. It increases the place of
workers in the society and their ego is satisfied. It naturally
affects production because mighty co-operative efforts alone
can produce great results.
179
179
4. Mental Revolution – The main object of industrial
relation is a complete mental revolution of workers and
employees. The industrial peace lies ultimately in a
transformed outlook on the part of both. It is the business
of leadership in the ranks of workers, employees and
Government to work out a new relationship in consonance
with a spirit of true democracy. Both should think
themselves as partners of the industry and the role of
workers in such a partnership should be recognized. On
the other hand, workers must recognize employer’s
authority. It will naturally have impact on production
because they recognize the interest of each other.
180
180
5. New Programmes – New programmes for workers
development are introduced in an atmosphere of peace
such as training facilities, labor welfare facilities etc. It
increases the efficiency of workers resulting in higher and
better production at lower costs.
181
181
Thus, from the above discussion, it is evident that good
industrial relation is the basis of higher production with
minimum cost and higher profits. It also results in increased
efficiency of workers. New and new projects may be
introduced for the welfare of the workers and to promote the
morale of the people at work.
An economy organized for planned production and
distribution, aiming at the realization of social justice and
welfare of the massage can function effectively only in an
atmosphere of industrial peace. If the twin objectives of rapid
national development and increased social justice are to be
achieved, there must be harmonious relationship between
management and labor.
182
182
TRADE UNIONS
"Trade Union" means any combination, whether temporary
or permanent, formed primarily for the purpose of regulating
the relations between workmen and employers or between
workmen and workmen, or between employers and
employers, or for imposing restrictive conditions on the
conduct of any trade or business
Trade unions are formed to protect and promote the interests
of their members. Their primary function is to protect the
interests of workers against discrimination and unfair labor
practices.
183
OBJECTIVES
Representation
Negotiation
Voice in decisions affecting workers
Member services
(a) Education and training
(b) Legal assistance
(c) Financial discounts
(d) Welfare benefits
184
FUNCTIONS OF TRADE UNIONS
(i) Militant functions
(a) To achieve higher wages and better working
conditions
(b) To raise the status of workers as a part of
industry
(c) To protect labors against victimization and
injustice
185
(II) FRATERNAL FUNCTIONS
To take up welfare measures for improving the morale of
workers
To generate self confidence among workers
To encourage sincerity and discipline among workers
To provide opportunities for promotion and growth
To protect women workers against discrimination
186
IMPORTANCE OF TRADE UNIONS
Trade unions help in accelerated pace of economic development in many
ways as follows:
by helping in the recruitment and selection of workers.
by inculcating discipline among the workforce
by enabling settlement of industrial disputes in a rational manner
by helping social adjustments. Workers have to adjust themselves to the
new working conditions, the new rules and policies. Workers coming from
different backgrounds may become disorganized, unsatisfied and frustrated.
Unions help them in such adjustment.
187
TRADE UNIONISM IN INDIA
188
TRADE UNIONS IN INDIA
189
STRIKES
190
According to Industrial Disputes Act 1947, a
strike is “a cessation of work by a body of
persons employed in an industry acting in
combination; or a concerted refusal of any
number of persons who are or have been so
employed to continue to work or to accept
employment; or a refusal under a common
understanding of any number of such persons
to continue to work or to accept employment”.
191
CAUSES OF STRIKES
Strikes can occur because of the following reasons:
Dissatisfaction with company policy
Salary and incentive problems
Increment not up to the mark
Wrongful discharge or dismissal of workmen
Withdrawal of any concession or privilege
Hours of work and rest intervals
Leaves with wages and holidays
Bonus, profit sharing, Provident fund and gratuity
Retrenchment of workmen and closure of establishment
Dispute connected with minimum wages
192
TYPES OF STRIKE
Economic Strike
Sympathetic Strike
General Strike
Sit down Strike
Slow Down Strike
Sick-out (or sick-in )
Wild cat strikes
193
LOCKOUTS
194
LABOR LAW AND
COLLECTIVE BARGAINING
195
OBJECTIVES
Define
Collective bargaining
Bargaining in good faith
Past practice
Strike
Union shop
Closed shop
196
OBJECTIVES
Define
Open shop
Dues check-off
Agency shop
Fair-share agreement
Maintenance of membership
Right-to-work
197
OBJECTIVES
198
OBJECTIVES
199
COLLECTIVE BARGAINING
Process
Employer and duly appointed representatives of
the employees negotiate an agreement
Pertaining to wages, hours, and other terms and
conditions of employment
200
GOOD-FAITH BARGAINING
201
UNFAIR LABOR PRACTICE
202
IMPASSE DISPUTES
Representation
Interest
Grievance
203
SCOPE OF COLLECTIVE BARGAINING
204
COLLECTIVE BARGAINING
Impact bargaining
Unilateral changes to workplace
Past practices
205
WORKERS’ PARTICIPATION IN MANAGEMENT
206
OBJECTIVES OF WPM
Pie enlarging NOT Pie splitting
Gain sharing – improving profitability
Future sharing – improving competitiveness
Power sharing – Placing Stockholders and
Stakeholders on a even keel
Self actualisation – availing opportunity to
contribute meaningfully
207
DEFINING WPM
208
HOW WPM WORKS?
KF Walker Model
Employee Area Union
Planning Directors of
H
Managerial I
Organizing Works Colle- E
R
Motivating Council ctive A
Hierarchy R
Controlling Suggestion Barga- C
Schemes ining H
Y
Participative Supervision
and Job enlargement
Doing Workers
209
FORMS OF PARTICIPATION
Informative
Information Sharing
Involving
Consultative
Idea generating
Democratic functioning
Co deterministic
Joint decision making
Partnering
210
SOME KEY DIMENSIONS IN WPM
(DAVID GUEST,1995)
211
THE COMMITMENT MATRIX & BEHAVIOUR
PATTERNS
Commitment to ORGANISATION
t
High / High
o Common / integrated High / Low
U Goals & Values
N Business Partnership Habitual Resistance
I
O
Low / High Low / Low
N Co-operation Indifference
212
THE MISSING FOCUS
213