Professional Documents
Culture Documents
Introduction
Henry Ford the pioneer in the field of management state, "Take out may
building, take out my machines and all capital but leave my men with me, I
will become Henry Ford again." This statement of Henry Ford highlights that
human resources in an organisation plays a crucial role. In fact, management
of human resource is the most important and central because proper or
improper use of other resources depends upon human factor. In other words,
without the cooperation of human resources it is not possible to achieve the
objectives of an organisation.
The human resources refer to the knowledge, skills, abilities, values,
aptitudes and beliefs possessed by its workforce in the organisation. In fact
competent and skilled workforce determines the efficiency and effectiveness
of the organisation. Other things remaining the same, an organisation with
competent workforce is likely to be more effective in comparison to the
organisation low in this factor. In the words of Alfred P. Solan, "Most business
are alike except as to people." So, achieving human resources excellence
leads to organisation's excellence.tc.).
Origin
The scope of HRM refers to all the activities that come under the banner of HRM.
These activities are as follows
Human resources planning :- Human resource planning or HRP refers to a process by
which the company to identify the number of jobs vacant, whether the company has
excess staff or shortage of staff and to deal with this excess or shortage.
Job analysis design :- Another important area of HRM is job analysis. Job analysis gives
a detailed explanation about each and every job in the company.
Recruitment and selection :- Based on information collected from job analysis the
company prepares advertisements and publishes them in the newspapers. This is
recruitment. A number of applications are received after the advertisement is published,
interviews are conducted and the right employee is selected thus recruitment and
selection are yet another important area of HRM.
Orientation and induction :- Once the employees have been selected an induction or
orientation program is conducted. This is another important area of HRM. The
employees are informed about the background of the company, explain about the
organizational culture and values and work ethics and introduce to the other employees.
Training and development :- Every employee goes under training program which helps
him to put up a better performance on the job. Training program is also conducted for
existing staff that have a lot of experience. This is called refresher training. Training and
development is one area where the company spends a huge amount
Performance appraisal :- Once the employee has put in around 1 year of service,
performance appraisal is conducted that is the HR department checks the performance
of the employee. Based on these appraisal future promotions, incentives, increments in
salary are decided.
Compensation planning and remuneration :- There are various rules regarding
compensation and other benefits. It is the job of the HR department to look into
remuneration and compensation planning.
Motivation, welfare, health and safety :- Motivation becomes important to sustain the
number of employees in the company. It is the job of the HR department to look into the
different methods of motivation. Apart from this certain health and safety regulations
have to be followed for the benefits of the employees. This is also handled by the HR
department.
Industrial relations :- Another important area of HRM is maintaining co-ordinal relations
with the union members. This will help the organization to prevent strikes lockouts and
ensure smooth working in the company
Significance of HRM
Advantages/benefits/Significance/importance/need of HRM
HRM becomes significant for business organization due to the following reasons.
Objective :- HRM helps a company to achieve its objective from time to time by creating
a positive attitude among workers. Reducing wastage and making maximum use of
resources etc.
Facilitates professional growth :- Due to proper HR policies employees are trained well
and this makes them ready for future promotions. Their talent can be utilized not only in
the company in which they are currently working but also in other companies which the
employees may join in the future.
Better relations between union and management :- Healthy HRM practices can help the
organization to maintain co-ordinal relationship with the unions. Union members start
realizing that the company is also interested in the workers and will not go against them
therefore chances of going on strike are greatly reduced.
certain statements have been made, and why records may or may not have
been updated.
Personnel records provide the following:
changes and challenges facing the country in general, and their organisation
in particular. The employees should know about their balance sheet, sales
progress, diversification plans, restructuring plans, sharp price movements,
turnover and all such details. The HR professionals should impart education
to all employees through small booklets, video films, and lectures.
The primary responsibilities of a human resource manager are:
To develop a thorough knowledge of corporate culture, plans and policies.
To act as an internal change agent and consultant.
To initiate change and act as an expert and facilitator.
To actively involve himself in companys strategy formulation.
To keep communication lines open between the HRD function and individuals
and groups both within and outside the organisation.
To identify and evolve HRD strategies in consonance with overall business
strategy.
To facilitate the development of various organisational teams and their
working relationship with other teams and individuals.
To try and relate people and work so that the organisation objectives are
achieved effectively and efficiently.
To diagnose problems and to determine appropriate solution particularly in
the human resources areas.
To provide co-ordination and support services for the delivery of HRD
programmes and services.
To evaluate the impact of an HRD intervention or to conduct research so as
to identify, develop or test how HRD in general has improved individual or
organisational performance.
HRM functions
The HRM model contains all HR activities. When these activities are
discharged effectively, they will result in a competent and willing workforce
who will help realize organizational goals. There is another variable in the
model environment. It may be stated that the HR function does not operate
in vacuum. It is influenced by several internal and external forces like
Robert Owen is regarded as the father of personnel managementPersonnel Management was before concept than HRM. HRM differs in scope
and orientation it views people as an asset and aims at promoting
mutuality mutual goals and respect, gives rewards and responsibility. It
believes its policies will obtain commitment.
PM has limited scope and inverted orientation. Views labour as a tool which
can be manipulated for the benefit of the organization and replaced when its
worn out. The department itself was not treated with respect and was
treated as activity meant to hire new employees and maintain records. It was
never considered a strategic tool.
Definition
Personnel Management - Personnel Management is thus basically an
administrative record-keeping function, at the operational level. Personnel
Management attempts to maintain fair terms and conditions of employment,
S. No.
Dimension
Old concept
New concept
Importance of devising Can-do outlook;
clear rules/mutuality
impatience with rule
Guide to management Procedures
Business need
Action
Behaviour Referent
Norms/custom & practiceValues/Mission
Managerial Task vis-- Monitoring
Nurturing
vis Labour
Nature of Relations
Treated as tools
Treated as assets for
organisation
STRATEGIC ASPECTS
Key Relations
7.
Initiatives
8.
Corporate Plan
9.
Speed of Decision
10.
Labour Management
Piecemeal
Marginal to
Slow
LINE MANAGEMENT
Management Role
11.
Transactional
12.
Key Managers
13.
14.
Communication
Standardisation
15.
Prized management
skills
KEY LEVERS
Selection
16.
Pay
17.
18.
19.
Conditions
Labour Management
20.
Thrust of relations
21.
22.
Customer
Integrated
Central to
Fast
Transformational
leadership
Personnel/IR Specialists General/business/line
managers
Indirect
Direct
High (e.g. parity an
Low (e.g. parity not
issue)
seen as relevant)
Negotiation
Facilitation
Many
Harmonization
Towards individual
contracts
Marginalized (with
exception of some
bargaining for change
models)
Few
Restricted flow
Increased flow
23.
24.
Job Design
Conflict Handling
25.
Training &
Development
Division of Labour
Teamwork
Reach temporary truces Manage climate &
culture
Controlled access to
Learning companies
courses
INTRODUCTION
Development of human resources is essential for any organisation that would
like to be dynamic and growth-oriented. Unlike other resources, human
resources have rather unlimited potential capabilities. The potential can be
used only by creating a climate that can continuously identify, bring to
surface, nurture and use the capabilities of people. Human Resrouce
Development (HRD) system aims at creating such a climate. A number of
HRD techniques have been developed in recent years to perform the above
task based on certain principles. This unit provides an understanding of the
concept of HRD system, related mechanisms and the changing boundaries of
HRD.
HRD concept was first introduced by Leonard Nadler in 1969 in a conference
in US. He defined HRD as those learning experience which are organized, for
a specific time, and designed to bring about the possibility of behavioral
change.
Human Resource Development (HRD) is the framework for helping
employees develop their personal and organizational skills, knowledge, and
abilities. Human Resource Development includes such opportunities as
employee training, employee career development, performance
management and development, coaching, mentoring, succession planning,
key employee identification, tuition assistance, and organization
development.
The focus of all aspects of Human Resource Development is on developing
the most superior workforce so that the organization and individual
employees can accomplish their work goals in service to customers.
Human Resource Development can be formal such as in classroom training, a
college course, or an organizational planned change effort. Or, Human
Resource Development can be informal as in employee coaching by a
in organisations are human beings. They have their own needs, motivation
and expectations, and that their contribution to the organisation is much
more than that of any other resource being used.
The concept of Human Resource System (HRS) assumes that human beings
are a great asset to an organisation. They are not merely necessary evils to
be reckoned with; in fact they can contribute a great deal to the achievement
of organizational goals. This positive view of people working in the
organisations as an asset with unlimited potential is the core of the concept
of the human resource system.
Another underlying concept of the system is that investment in human
beings is necessary. Investment for increasing the resource is important, and
the more an organisation invests in its human resources, the greater the
return from the investment is likely to be. This realisation of the need for
continuous investment, and the possibility of substantial return, is an
important concept of the human resource system. There is also one more
reason why investment in human resource is necessary. It is also being
realised that organisations have an obligation to the society, that they should
also contribute to the development of people, and operate with the new
values of treating people as human beings, as well as contribute to this value
of creating traditions and culture of respecting people as human beings.
Human resource development in the organisation context is a process by
which the employees of an organisation are helped, in a continuous and
planned way to:
Acquire or sharpen capabilities required to perform various functions
associated with their present or expected future roles;
Develop their general capabilities as individuals and discover and exploit
their own inner potentials for their own and/or organisational development
purposes; and
Develop an organisational culture in which supervisor-subordinate
relationships, teamwork and collaboration among sub-units are strong and
contribute to the professional well being, motivation and pride of employees.
This definition of HRD is limited to the organisational context. In the context
of a state or nation it would differ.
HRD is a process, not merely a set of mechanisms and techniques. The
mechanisms and techniques such as performance appraisal, counselling,
training, and organization development interventions are used to initiate,
facilitate, and promote this process in a continuous way. Because the process
has no limit, the mechanisms may need to be examined periodically to see
whether they are promoting or hindering the process. Organisations can
facilitate this process of development by planning for it, by allocating
organisational resources for the purpose, and by exemplifying an HRD
philosophy that values human beings and promotes their development.
Any company that wants to achieve great success needs to pay close
attention to human capital management. The employees of a company are
the biggest asset it has and by keeping that asset strong, the company has
the best chance of success. A company that pays little attention to its
employees will end up with a team of employees who are unmotivated and
unproductive. Human capital management can be the difference between a
company with a winning team of employees all pulling together toward a
shared goal, and a demoralized group who are providing little overall value.
It is important that each and every member of the team is considered as an
individual, each with their own set of strengths and weaknesses. Human
capital management assumes that any lack of knowledge amongst the
employees of a company is purely down to lack of training or teaching,
rather than looking upon it as a fault of an individual or a team.
Human capital management provides a strategic approach to managing staff
at a company. It differs from traditional HR practices as it is concerned less
with administrative tasks and procedures and focuses more on getting the
most out of staff for a happy and productive team. Companies who currently
do not have any type of human capital management program in place should
think carefully about implementing one. The employees benefit greatly from
human capital management which in turn means the company benefits
greatly too.
The approach to managing and organizing employees through a human
capital management program is done in a number of ways. In essence, the
approach should provide a fully inclusive strategy from even before a new
employee is hired right through to their exit. Another important part of
human capital management is succession planning and talent management.
Being able to identify key members of staff as possible future managers can
make the decision making process for current senior management more
straight forward, and allow for greater ease with forward planning.
The HRM argument is that people... are not to be seen as a cost, but as an
asset in which to invest, so adding to their inherent value. (Torrington, 1989,
emphasis in the original)
Of course, all these commentators are writing about HRM as a belief system,
not about how it works in practice. The almost universal replacement of the
term 'personnel management' with HR or HRM does not mean that everyone
with the job title of HR director or manager is basing their approach on the
HRM philosophy. Guest commented in 1991 that HRM was 'all hype and
hope'.
A survey conducted by Caldwell (2004) provided some support to this view
by establishing that the five most important HR policy areas identified by
respondents were also the five in which the least progress had been made.
For example, while 89 per cent of respondents said the most important HR
policy was 'managing people as assets which are fundamental to the
competitive advantage of the organization', only 37 per cent stated that they
had made any progress in implementing it.
However, research conducted by Hoque and Moon (2001) found that there
were significant differences between the activities of those described as HR
specialists and those described as personnel specialists. For example,
workplace-level strategic plans are more likely to emphasize employee
development in workplaces with an HR specialist rather than a personnel
specialist, and HR specialists are more likely to be involved in the
development of strategic plans than are personnel specialists.
Both HRM in its proper sense and HCM as defined above treat people as
assets. Although, as William Scott-Jackson, Director of the Centre for Applied
HR Research at Oxford Brookes University argues (Oracle, 2005), Tou can't
simply treat people as assets, because that depersonalizes them and leads
to the danger that they are viewed in purely financial terms, which does little
for all-important engagement.'
However, there is more to both HRM and HCM than simply treating people as
assets. Each of them also focuses on the importance of adopting an
integrated and strategic approach to managing people, which is the concern
of all the stakeholders in an organization, not just the people management
function. So how does the concept of HCM reinforce or add to the concept of
HRM? The answers to that question are that HCM:
draws attention to the importance of what Kearns (2005b) calls
'management through measurement', the aim being to establish a clear line
of sight between HR interventions and organizational success;
strengthens the HRM belief that people are assets rather than costs;
focuses attention on the need to base HRM strategies and processes on the
requirement to create value through people and thus further the
ABSTRACT
India is being widely recognised as one of the most exciting emerging economics in the
world. Besides becoming a global hub of outsourcing, Indian firms are spreading their
wings globally through mergers and acquisitions. During the first four months of 1997,
Indian companies have bought 34 foreign companies for about U.S. $11 billion dollars.
This impressive development has been due to a growth in inputs (capital and labour) as
well as factor productivity. By the year 2020, India is expected to add about 250 million
to its labour pool at the rate of about 18 million a year, which is more than the entire
labour force of Germany. This so called 'demographic dividend' has drawn a new
interest in the Human Resource concepts and practices in India. This paper traces
notable evidence of economic organisations and managerial ideas from ancient Indian
sources with enduring traditions and considers them in the context of contemporary
challenges.
INTRODUCTION
Over many centuries India has absorbed managerial ideas and practices from around
the world. Early records of trade, from 4500 B.C. to 300 B.C., not only indicate
international economic and political links, but also the ideas of social and public
administration. The world's first management book, titled 'Arlhashastra', written three
millennium before Christ, codified many aspects of human resource practices in Ancient
India. This treatise presented notions of the financial administration of the state, guiding
principles for trade and commerce, as well as the management of people. These ideas
were to be embedded in organisational thinking for centuries (Rangarajan 1992, Sihag
2004). Increasing trade, that included engagement with the Romans, led to widespread
and systematic governance methods by 250 A.D. During the next 300 years, the first
Indian empire, the Gupta Dynasty, encouraged the establishment of rules and
regulations for managerial systems, and later from about 1000 A.D. Islam influenced
many areas of trade and commerce. A further powerful effect on the managerial history
of India was to be provided by the British system of corporate organisation for 200
years. Clearly, the socio cultural roots of Indian heritage are diverse and have been
drawn from multiple sources including ideas brought from other parts of the old world.
Interestingly, these ideas were essentially secular even when they originated from
religious bases.
In the contemporary context, the Indian management mindscape continues to be
influenced by the residual traces of ancient wisdom as it faces the complexities of global
realities. One stream of holistic wisdom, identified as the Vedantic philosophy, pervades
managerial behaviour at all levels of work organisations. This philosophical tradition has
its roots in sacred texts from 2000 B.C. and it holds that human nature has a capacity
for self transformation and attaining spiritual high ground while facing realities of day to
day challenges (Lannoy 1971). Such cultural based tradition and heritage can have a
substantial impact on current managerial mindsets in terms of family bonding and
mutuality of obligations. The caste system, which was recorded in the writings of the
Greek Ambassador Megasthenes in the third century B.C., is another significant feature
of Indian social heritage that for centuries had impacted organisational architecture and
managerial practices, and has now become the focus of critical attention in the social,
political and legal agenda of the nation.
One of the most significant areas of values and cultural practices has been the caste
system. Traditionally, the caste system maintained social or organisational balance.
Brahmins (priests and teachers) were at the apex, Kshatriya (rulers and warriors),
Vaishya (merchants and managers) and Shwdra (artisans and workers) occupied the
lower levels. Those outside the caste hierarchy were called 'untouchables'. Even
decades ago, a typical public enterprise department could be dominated by people
belonging to a particular caste. Feelings associated with caste affairs influenced
managers in areas like recruitment, promotion and work allocation (Venkatranam &
Chandra 1996). Indian institutions codified a list of lower castes and tribal communities
called 'scheduled castes and scheduled tribes'. A strict quota system called,
'reservation' in achieving affirmative equity of castes, has been the eye of political storm
in India in recent years. The central government has decreed 15 per cent of recruitment
is to be reserved for scheduled castes, and a further seven and half per cent for
scheduled tribes. In addition, a further 27 per cent has been decreed for other backward
castes. However, the liberalisation of markets and global linkages have created
transformation of attitudes towards human resource (HR) policies and practices
(Khalilzadeh-Shirazi & Zagha 1994, Gopalan & Rivera 1997). Faced with the challenge
of responding to the rationale of Western ideas of organisation in the changing social
and economic scenario of Indian organisation, practitioners are increasingly taking a
broader and reflective perspective of human resource management (HRM) in India.
This manuscript has three main parts. In the first part is provided an overview of
important historical events and activity that has influenced contemporary managerial
tenets, the second part of the manuscript describes the emerging contemporary Indian
HRM practices and indicates some interesting challenges. Much of the second part is
also summarised on four informative Figures. The concluding section, the third part of
the manuscript, succinctly integrates the two preceding parts.
VALUE OF CONTEXT OF HRM IN INDIA
The managerial ideologies in Indian dates back at least four centuries. Arthashastra
written by the celebrated Indian scholar-practitioner Chanakya had three key areas of
exploration, 1) public policy, 2) administration and utilisation of people, and 3) taxation
and accounting principles (Chatterjee 2006). Parallel to such pragmatic formulations, a
deep rooted value system, drawn from the early Aryan thinking, called vedanta, deeply
influenced the societal and institutional values in India. Overall, Indian collective culture
had an interesting individualistic core while the civilisational values of duty to family,
group and society was always very important while vedantic ideas nurtured an inner
private sphere of individualism.
There has been considerable interest in the notion that managerial values are a function
of the behaviours of managers. England, Dhingra and Agarwal (1974) were early
scholars who contended that managerial values were critical forces that shape
organisational architecture. The relevance of managerial values in shaping modern
organisational life is reflected in scholarly literature linking them to corporate culture
(Deal & Kennedy 1982), organisational commitment and job satisfaction (O'Reilly,
Chatham & Caldwell 1991), as well as institutional governance (Mowday, Porter &
Steers 1982). Thus, understanding the source of these values and in particular societal
work values (which link the macro-micro relationships and in turn organisational
practices) had become a popular line of enquiry, and a great deal of evidence has been
presented to support the importance of national culture in shaping managerial values.
One of the most widely read formulations of this literature is the seminal work of
Hofstede (1980) who popularised the notion of clustering culture in generic dimensions
such as power distribution, structuring, social orientation, and time horizons. In turn,
these dimensions could be employed to explain relevant work attitudes, job incumbent
behaviours and the working arrangements within organisational structures. Two of these
dimensions were individualism and collectivism.
The traditional social ethos from the ancient roots, which was developed over centuries,
underwent profound transformation during the British rule. Consequently, in the
contemporary context multiple layers of values (core traditional values, individual
managerial values, and situational values) have emerged (Chatterjee & Pearson 2000).
Though the societal values largely remain very much anchored in the ancient traditions
they are increasingly reflecting corporate priorities and values of global linkages. But in
the arena of globalisation where priorities of consumerism, technological education,
mass media, foreign investment and trade union culture predominate, newer tensions
are becoming evident. For instance, contemporary Indian multi national companies and
global firms in India have started shifting their emphasis to human resources with their
knowledge and experience as the central area of attention in extending new
performance boundaries (Khandekar & Sharma 2005). Considerable research evidence
attests to this trend with particular relevance to greenfield organisations with little or no
historical baggages in their organisational culture (Settt 2004, Roy 2006).
Within Indian traditions the choice of individualistic or collectivistic behaviour depends
on a number of culturally defined variables. The dynamics of these variables are
underpinned through three key elements guiding Indian managerial mindscapes. These
three constructs are Desh (the location), Kaal (the timing), and Patra (the specific
personalities involved). Sinha and Kunungo (1997) claim that the interaction of these
three variables determines the guidelines for decisional cues. This managing or
nurturing of the outer layer of collectivism in an inner private sphere of individualism is
expressed in Figure 1 which demonstrates the behavioural anchors in Indian
organisational life.
According to Sharma (1996), this culture based framework, which has three types of
gunas (attraction), is being increasingly used in employee assessment and
organisational team building strategies. The contention is that each guna is a separate
contribution to the core of human personalities. The Sattava (or truth orientation) is the
sentiment of exalted values in people, organisations or society. Alternatively, the
Tamasik guna depicts a negative orientation which can be expressed behaviourally as
ignorance, greed or corruption. Those individuals with a Rajasik guna are inherently
driven by a desire to make a worthwhile contribution to their surroundings. Collectively,
these spiritual orientations, which manifest as Sattava, Tamas or Rajas gunas, articulate
as positive or negative HRM functions such as leadership, motivation or other
institutional behavioural activity. The third row of Figure 1 highlights the linking of HRM
trends to socio cultural roots. The culture of Sradha (upward loyalty) and Sneha
(mentoring with affection) outline the behavioural anchors derived from the civilisational
roots. The acceptance of 'Sradha' by youngers and the display of 'Sneha' by the seniors
have been the root of sustainability of all types of Indian oragnisations. This has a
striking similarity to the concepts of 'oyabun' and 'kobun' in the Japanese cultural
context.
CONTEMPORARY INDIA
In a recent survey of Indian CEO's, it was suggested that Indian managerial leaders
were less dependent on their personal charisma, but they emphasised logical and step
by step implementation processes. Indian leaders focused on empowerment and
accountability in cases of critical turnaround challenges, innovative challenges,
innovative technology, product planning and marketing or when other similar challenges
were encountered (Spencer, Rajah, Narayan, Mohan & Latiri 2007). These social
scientists contend.
Leaders in other countries often tell about why they chose a peculiar person for a
certain role per task, detailing the personal characteristics that made that person right
for that situation. They may also consider, in detail, how an assignment would help
someone grow and develop their abilities. In general, Indian leaders simply did not
discuss how they matched particular people to certain roles or tasks, nor did they
usually consider in detail how the personal characteristics of individuals might shape or
inform the best way to influence that person. (Spencer, et al 2007:90).
Indian HRM in Transition
One of the noteworthy features of the Indian workplace is demographic uniqueness. It is
estimated that both China and India will have a population of 1.45 billion people by
2030, however, India will have a larger workforce than China. Indeed, it is likely India
will have 986 million people of working age in 2030, which well probably be about 300
million more than in 2007. And by 2050, it is expected India will have 230 million more
workers than China and about 500 million more than the United States of America
(U.S.). It may be noted that half of India's current population of 1.1 billion people are
under of 25 years of age (Chatterjee 2006). While this fact is a demographic dividend
for the economy, it is also a danger sign for the country's ability to create new jobs at an
unprecedented rate. As has been pointed out by Meredith (2007).
When India's young demographic bubble begins to reach working age, India will need
far more jobs than currently exist to keep living standards from declining. India today
doesn't have enough good jobs for its existing workers, much less for millions of new
ones. If it cannot better educate its children and create jobs for then once they reach
working age, India faces a population time bomb: The nation will grow poorer and not
richer, with hundred of millions of people stuck in poverty. (p.133).
With the retirement age being 55 to 58 years of age in most public sector organisations,
Indian workplaces are dominated by youth. Increasing the retirement age in critical
areas like universities, schools, hospitals, research institutions and public service is a
topic of considerable current debate and agenda of political parties.
The divergent view, that each society has an unique set of national nuances, which
guide particular managerial beliefs and actions, is being challenged in Indian society. An
emerging dominant perspective is the influence of globalisation on technological
advancements, business management, education and communication infrastructures is
leading to a converging effect on managerial mindsets and business behaviours. And
when India embraced liberalisation and economic reform in the early 1990s, dramatic
changes were set in motion in terms of corporate mindsets and HRM practices as a
result of global imperatives and accompanying changes in societal priorities.
Indeed, the onset of a burgeoning competitive service sector compelled a demographic
shift in worker educational status and heightened the demand for job relevant skills as
well as regional diversity. Expectedly, there has been a marked shift towards valuing
human resources (HR) in Indian organisations as they become increasingly strategy
driven as opposed to the culture of the status quo. Accordingly, competitive advantage
in industries like software services, pharmaceuticals, and biotechnology (where India is
seeking to assert global dominance), the significance of HRs is being emphasised.
These relativities were demonstrated in a recent study of three global Indian companies
with (235 managers) when evidence was presented that positively linked the HRM
practices with organisational performance (Khandekar & Sharma 2005). In spite of this
trend of convergence, a deep sense of locality exists creating more robust 'cross
vergence' in the conceptual as well as practical domain.
IR Challenge
The Indian IR system has two main features. First, is the absence of the provision to
recognise a union as a representative or agent for collective bargaining. Second, is the
total dominance of government in regulating the industrial relations (IR) domain. Though
it is relatively easy for members of a work organisation to be registered as a union
under the law, it does not lead to the legal recognition by the employer in dispute
resolution or bargaining process. This contention was made by Kuruvilla (1996) over a
decade ago.
Indian industrial relations have evolved from political roots and labour market demands.
An unique feature of Indian IR has been the dominance of political parties sponsoring
unions. Union membership has been the most popular breeding ground for politicians,
and political leaders have enjoyed the use of union platforms. Such politicisation has
generated conflicts and rivalry creating mayhem and the hurting of labour interest.
to work at IT company Infosys last year, just 2% were qualified indicating a sign of
stress in the university system that graduates 2.5 million a year." (p.33).
One of the most concerning issues for HR managers in India is the high staff turnover.
In industries like call centres, staff attrition is the single biggest issue. The industry has
grown from zero employment to an employer of quarter of a million young English
speaking, well educated and ambitious people. The point is well made by Slater (2007),
who wrote.
The issue of retention is much more critical in the high value adding BPO sector such as
R&D activities. This $40 billion industry has one of the highest attrition rates of around
20 to 25 per cent. The service laden BPO and Hord industry have the highest attrition
rates. Many companies are developing innovative incentive packages in countering this
job hopping phenomenon. Figure 4 illustrates some of these initiative by leading
companies in India.
A dramatic shift in recruitment practices has been taking place as globally pretend
Indian companies as well as global technical services rivals have made India a
battlefield of recruitment for the best workers. For example, IBM's workforce in India has
more than doubled in two years to a cadre of 53,000. This outcome has come with the
elimination of 20,000 jobs in high cost markets like the U.S., Europe and Japan. The
R&D centre of IBM is staffed by 3,000 world class engineers and is being recognised for
its ability to innovate on all areas from simple processes, softwares, semiconductors as
well as supercomputers. It is interesting to note that IBM has dominated the recruitment
market in technical services in India during 2006. This leading company recruited
10,000 employees out of a total of 25,000 people who were recruited to the technical
services industry. The prominence of IBM as an employer of technically qualified
personnel has been acknowledged in the popular press (Business Week 2007).
Changing role of HRM
Human Resources Management seeks to understand and then support how people do their
jobs. Just as important, however, is the understanding of the environment in which that work
is done; and how it contributes to the over all success of the organization - i.e. organizational
effectiveness. The two are certainly inter-related and inter-dependent.
The Four Roles of HR To truly understand the field of Human Resources Management, one
must consider and accept the four basic roles of the HR function, no matter how it's defined.
Some of these are already understood and others less so. These are:
1. Compliance and enforcement
2. Management advocacy
3. Strategic partner
4. Employee advocacy
The first two we've got down pat. We've just begun making inroads on the third and still
can't seem to get a handle on the fourth.
The Enforcer: Most HR practitioners will agree that the role as the employer's compliance
officer is well established. But, it's increasingly difficult to keep track of changes in state,
federal and local laws and regulations. These must then be translated into effective policies
and practices. A greater emphasis is also placed today on taking preventative measures to
forestall, or at least mitigate, the effects of employee complaints of harassment, wrongful
discharge, or discrimination. Though generally perceived of as a reactive function, HR
professionals will have to increasingly rely on proactive solutions.
Management Representative: This is the other traditional HRM role. As part of the
Knowledge Management
within the structure and not let the structure impinge upon the process or
the project. Know the structure intimately, so as to guide others to effectively
work within the given parameters. Do this to expand beyond the boundaries.
3. Intuition Intuition is the capacity of knowing without the use of rational
processes; it's the cornerstone of emotional intelligence. People with keen
insight are often able to sense what others are feeling and thinking;
consequently, they're able to respond perfectly to another through their
*deeper nderstanding. The stronger one's intuition, the stronger manager
one will be.
4. Knowledge A thorough knowledge base is essential. The knowledge base
must be so ingrained and integrated into their being that they become
*transparent, * focusing on the employee and what s/he needs to learn,
versus focusing on the knowledge base. The excellent manager lives from a
knowledge base, without having to draw attention to it.
5. Commitment A manager is committed to the success of the project and of
all team members. S/he holds the vision for the collective team and moves
the team closer to the end result. It's the manager's commitment that pulls
the team forward during trying times.
6. Being Human Employees value leaders who are human and who don't hide
behind their authority. The best leaders are those who aren't afraid to be
themselves. Managers who respect and connect with others on a human
level inspire great loyalty.
7. Versatility Flexibility and versatility are valuable qualities in a manager.
Beneath the flexibility and versatility is an ability to be both non-reactive and
not attached to how things have to be. Versatility implies an openness this
openness allows the leader to quickly *change on a dime* when necessary.
Flexibility and versatility are the pathways to speedy responsiveness.
8. Lightness A stellar manager doesn't just produce outstanding results; s/he
has fun in the process! Lightness doesn't impede results but rather, helps to
move the team forward. Lightness complements the seriousness of the task
at hand as well as the resolve of the team, therefore contributing to strong
team results and retention.
9. Discipline/Focus Discipline is the ability to choose and live from what one
pays attention to. Discipline as self-mastery can be exhilarating! Role model
the ability to live from your intention consistently and you'll role model an
important leadership quality.
ROLE OF HR MANAGERS
ABSTRACT
India is being widely recognised as one of the most exciting emerging economics in the
world. Besides becoming a global hub of outsourcing, Indian firms are spreading their
wings globally through mergers and acquisitions. During the first four months of 1997,
Indian companies have bought 34 foreign companies for about U.S. $11 billion dollars.
This impressive development has been due to a growth in inputs (capital and labour) as
well as factor productivity. By the year 2020, India is expected to add about 250 million
to its labour pool at the rate of about 18 million a year, which is more than the entire
labour force of Germany. This so called 'demographic dividend' has drawn a new
interest in the Human Resource concepts and practices in India. This paper traces
notable evidence of economic organisations and managerial ideas from ancient Indian
sources with enduring traditions and considers them in the context of contemporary
challenges.
INTRODUCTION
Over many centuries India has absorbed managerial ideas and practices from around
the world. Early records of trade, from 4500 B.C. to 300 B.C., not only indicate
international economic and political links, but also the ideas of social and public
administration. The world's first management book, titled 'Arlhashastra', written three
millennium before Christ, codified many aspects of human resource practices in Ancient
India. This treatise presented notions of the financial administration of the state, guiding
principles for trade and commerce, as well as the management of people. These ideas
were to be embedded in organisational thinking for centuries (Rangarajan 1992, Sihag
2004). Increasing trade, that included engagement with the Romans, led to widespread
and systematic governance methods by 250 A.D. During the next 300 years, the first
Indian empire, the Gupta Dynasty, encouraged the establishment of rules and
regulations for managerial systems, and later from about 1000 A.D. Islam influenced
many areas of trade and commerce. A further powerful effect on the managerial history
of India was to be provided by the British system of corporate organisation for 200
years. Clearly, the socio cultural roots of Indian heritage are diverse and have been
drawn from multiple sources including ideas brought from other parts of the old world.
Interestingly, these ideas were essentially secular even when they originated from
religious bases.
In the contemporary context, the Indian management mindscape continues to be
influenced by the residual traces of ancient wisdom as it faces the complexities of global
realities. One stream of holistic wisdom, identified as the Vedantic philosophy, pervades
managerial behaviour at all levels of work organisations. This philosophical tradition has
its roots in sacred texts from 2000 B.C. and it holds that human nature has a capacity
for self transformation and attaining spiritual high ground while facing realities of day to
day challenges (Lannoy 1971). Such cultural based tradition and heritage can have a
substantial impact on current managerial mindsets in terms of family bonding and
mutuality of obligations. The caste system, which was recorded in the writings of the
Greek Ambassador Megasthenes in the third century B.C., is another significant feature
of Indian social heritage that for centuries had impacted organisational architecture and
managerial practices, and has now become the focus of critical attention in the social,
political and legal agenda of the nation.
One of the most significant areas of values and cultural practices has been the caste
system. Traditionally, the caste system maintained social or organisational balance.
Brahmins (priests and teachers) were at the apex, Kshatriya (rulers and warriors),
Vaishya (merchants and managers) and Shwdra (artisans and workers) occupied the
lower levels. Those outside the caste hierarchy were called 'untouchables'. Even
decades ago, a typical public enterprise department could be dominated by people
belonging to a particular caste. Feelings associated with caste affairs influenced
managers in areas like recruitment, promotion and work allocation (Venkatranam &
Chandra 1996). Indian institutions codified a list of lower castes and tribal communities
called 'scheduled castes and scheduled tribes'. A strict quota system called,
'reservation' in achieving affirmative equity of castes, has been the eye of political storm
in India in recent years. The central government has decreed 15 per cent of recruitment
is to be reserved for scheduled castes, and a further seven and half per cent for
scheduled tribes. In addition, a further 27 per cent has been decreed for other backward
castes. However, the liberalisation of markets and global linkages have created
transformation of attitudes towards human resource (HR) policies and practices
(Khalilzadeh-Shirazi & Zagha 1994, Gopalan & Rivera 1997). Faced with the challenge
of responding to the rationale of Western ideas of organisation in the changing social
and economic scenario of Indian organisation, practitioners are increasingly taking a
broader and reflective perspective of human resource management (HRM) in India.
This manuscript has three main parts. In the first part is provided an overview of
important historical events and activity that has influenced contemporary managerial
tenets, the second part of the manuscript describes the emerging contemporary Indian
HRM practices and indicates some interesting challenges. Much of the second part is
also summarised on four informative Figures. The concluding section, the third part of
the manuscript, succinctly integrates the two preceding parts.
under the law, it does not lead to the legal recognition by the employer in dispute
resolution or bargaining process. This contention was made by Kuruvilla (1996) over a
decade ago.
Indian industrial relations have evolved from political roots and labour market demands.
An unique feature of Indian IR has been the dominance of political parties sponsoring
unions. Union membership has been the most popular breeding ground for politicians,
and political leaders have enjoyed the use of union platforms. Such politicisation has
generated conflicts and rivalry creating mayhem and the hurting of labour interest.
Nevertheless, in spite of wage determination by central government boards, and ad hoc
industrial awards, enterprise level bargaining has yielded positive outcomes.
Interestingly, during the 1970s in a period of the highest number of strikes, the
registered number of unions grew fivefold. But a decade later profound economic and
political reform movement saw a new direction in the trade union movement. A section
of scholarly trade union leaders began to incorporate new global thinking in the union
outlook.
Since the 1980s, the Indian industrial relations culture has been considerably impacted
by the intensification of globalised markets. During this time and beyond, there has
been a clear departure from traditional personnel management. The shift has not only
been in the general tone, but in the substantive visions. Adjustment to the global
imperatives of an emerging service sector, sunrise industries, and demographic shifts in
competencies has given rise to new thinking. In spite of most of the Indian labour laws
being entrenched in a world view that is very different to the current realities, and the
obvious urgency for them to be updated to incorporate more flexible, competitive work
systems, the built in rigidities are still proving a formidable obstacle.
The most alarming issue in the HR and IR context is the lack of job opportunities
outside urban areas where more than 70 per cent of the population lives. As has been
pointed out by Meredith (2007).
Technical Services Recruitment and Retention
There has been a dramatic shift in the expectations of employees in the organised and
globally linked sectors of the economy. An unprecedented rise in the disposable income
coupled with a declining dependency ratio, has led to young professionals becoming
extremely mobile. The problem is critically evident in the off shoring industry where the
average retention period of an employee is considered to be around six to eight months.
And the retention of senior level executives is an additional challenge. The attrition rates
are highest in information technology (IT) (30-35%), business process outsourcing
(BPO) (35-40%), insurance (35-40%), retail and fast moving consumer goods (FMCG)
(20-30%), and manufacturing and engineering (10-15%) (Chatterjee 2006).
Over the past decade, there has been a sea change in the area of Indian technical
services and the associated HRM practices of recruitment and retention. While the
higher education system in the country has remained overwhelming poor in
infrastructure and weak in becoming revitalised to grapple with the global imperatives,
there has been a mushrooming of private educational institutions. The recruitment
problem is further deepened by the emergence of a new culture of 'job hopping'
amongst employers who can demonstrate their world class competencies. This
phenomenon of turnover has seen a chain reaction in entry level salaries, and an
increase in graduates has created significant social and economic disruption to the
Indian labour market. A likely scenario from this rampant activity is that the Indian HR
scene will be negatively impacted in the next decade unless the deregulation and
autonomy of the higher education sectors is initiated somewhat immediately. An
example of this widening gap between the university system and market need has
become a serious impediment in several new industries in India. For an example, it has
been reported in the popular press (Time 2007), "... out of 13 million people who applied
to work at IT company Infosys last year, just 2% were qualified indicating a sign of
stress in the university system that graduates 2.5 million a year." (p.33).
One of the most concerning issues for HR managers in India is the high staff turnover.
In industries like call centres, staff attrition is the single biggest issue. The industry has
grown from zero employment to an employer of quarter of a million young English
speaking, well educated and ambitious people. The point is well made by Slater (2007),
who wrote.
The issue of retention is much more critical in the high value adding BPO sector such as
R&D activities. This $40 billion industry has one of the highest attrition rates of around
20 to 25 per cent. The service laden BPO and Hord industry have the highest attrition
rates. Many companies are developing innovative incentive packages in countering this
job hopping phenomenon. Figure 4 illustrates some of these initiative by leading
companies in India.
A dramatic shift in recruitment practices has been taking place as globally pretend
Indian companies as well as global technical services rivals have made India a
battlefield of recruitment for the best workers. For example, IBM's workforce in India has
more than doubled in two years to a cadre of 53,000. This outcome has come with the
elimination of 20,000 jobs in high cost markets like the U.S., Europe and Japan. The
R&D centre of IBM is staffed by 3,000 world class engineers and is being recognised for
its ability to innovate on all areas from simple processes, softwares, semiconductors as
well as supercomputers. It is interesting to note that IBM has dominated the recruitment
market in technical services in India during 2006. This leading company recruited
10,000 employees out of a total of 25,000 people who were recruited to the technical
services industry. The prominence of IBM as an employer of technically qualified
personnel has been acknowledged in the popular press (Business Week 2007).
Changing role of HRM
Human Resources Management seeks to understand and then support how people do their
jobs. Just as important, however, is the understanding of the environment in which that work
is done; and how it contributes to the over all success of the organization - i.e. organizational
effectiveness. The two are certainly inter-related and inter-dependent.
The Four Roles of HR To truly understand the field of Human Resources Management, one
must consider and accept the four basic roles of the HR function, no matter how it's defined.
Some of these are already understood and others less so. These are:
1. Compliance and enforcement
2. Management advocacy
3. Strategic partner
4. Employee advocacy
The first two we've got down pat. We've just begun making inroads on the third and still
can't seem to get a handle on the fourth.
The Enforcer: Most HR practitioners will agree that the role as the employer's compliance
officer is well established. But, it's increasingly difficult to keep track of changes in state,
federal and local laws and regulations. These must then be translated into effective policies
and practices. A greater emphasis is also placed today on taking preventative measures to
forestall, or at least mitigate, the effects of employee complaints of harassment, wrongful
discharge, or discrimination. Though generally perceived of as a reactive function, HR
professionals will have to increasingly rely on proactive solutions.
Management Representative: This is the other traditional HRM role. As part of the
management staff, the HR department is the point of interface between management
policies and its employees. It's charged with communicating and interpreting management
dicta. These responsibilities are also considered an extension of the compliance and
enforcement roles. What is not communicated, can seldom be enforced. The "open-book
management" movement furthers a trend toward greater employee empowerment and is
based on a greater sharing of information; much of which is coordinated through human
resource procedures.
Strategic Partner: HR has begun stepping from its historical reactive function - like the guy
who follows a parade of elephants with a shovel on his shoulder. A complaint is filed, react to
it. Jobs open up, fill 'em. Absenteeism's on the rise, step up the discipline. The movement to
include human resources management in the strategic decision-making process is a
relatively new phenomenon. Only a relatively small number of organizations have yet to
grant this recognition. This new role does bring with it additional burdens and
responsibilities; to be aware of changes in the external environment that will impact the
organization; offer appropriate strategies and procedures to anticipate change; and provide
regular feed back that helps steer strategic planning. A whole new set of skills and
perspectives will be required of HR practitioners.
Employee Advocate: This is not so much a new role as much as it's practically nonexistent.
It's actually frowned upon in many organizations and is the most difficult of the four to
realize. After all, it does seem to be a direct contradiction to serving as an advocate for
management. It's an uncomfortable conflict that many practitioners either choose, or are
encouraged, to avoid. Still, it's a role that must be accepted since it directly impacts the
other three. Employee advocacy fosters trust and credibility in the relationship. If employees
need someone to speak for them, and if it's not Human Resources, then who? You guess!
Like the overlapping of HRM and OD, the four basic roles for Human Resources management
are interrelated and mutually supportive. Success rests in fully accepting all four and striking
the proper balance among them. Most HR functions already have the basics of the first two.
The organization must shift its culture to accept the third. Both management and the HR
professionals must recognize the need for the fourth. But none can be fully actualized
absent the other three.
e-HRM
e-HRM is the use of web-based technologies to provide HRM services within employing
organizations. It embraces e-recruitment and e-learning, the first fields of human
resource management to make extensive use of web-based technology. From this base
e-HRM has expanded to embrace the delivery of virtually all HR policies. Within a
system of e-HRM, it is possible for line managers to use desktop computers to arrange
and conduct appraisals, plan training and development, evaluate labour costs, and
examine indicators for turnover and absenteeism. Employees can also use a system of
e-HRM to plan their personal development, apply for promotion and new jobs, and
access a range of information on HR policy. Systems of e-HRM are increasingly
supported by dedicated software produced by private suppliers.
E-HRM is the (planning, implementation and) application of information technology for
both networking and supporting at least two individual or collective actors in their shared
performing of HR activities.
E-HRM is not the same as HRIS (Human resource information system) which refers to
ICT systems used within HR departments. Nor is it the same as V-HRM or Virtual HRM which is defined by Lepak and Snell as "...a network-based structure built on
partnerships and typically mediated by information technologies to help the organization
acquire, develop, and deploy intellectual capital."
E-HRM is in essence the devolution of HR functions to management and employees.
They access these functions typically via intranet or other web-technology channels.
The empowerment of managers and employees to perform certain chosen HR functions
relieves the HR department of these tasks, allowing HR staff to focus less on the
operational and more on the strategic elements of HR, and allowing organisations to
lower HR department staffing levels as the administrative burden is lightened. It is
anticipated that, as E-HRM develops and becomes more entrenched in business
culture, these changes will become more apparent, but they have yet to be manifested
to a significant degree. A 2007 CIPD survey states that "The initial research indicates
that much-commented-on development such as shared services, outsourcing and e-HR
have had relatively little impact on costs or staff numbers".
Types
There are three tiers of E-HRM. These are described respectively as Operational,
Relational and Transformational. Operational E-HRM is concerned with administrative
functions - payroll and employee personal data for example. Relational E-HRM is
concerned with supporting business processes by means of training, recruitment,
performance management and so forth. Transformational E-HRM is concerned with
strategic HR activities such as knowledge management, strategic re-orientation. An
organisation may choose to puruse E-HRM policies from any number of these tiers to
achieve their HR goals.
Goals
E-HRM is seen as offering the potential to improve services to HR department clients
(both employees and management), improve efficiency and cost effectiveness within the
HR department, and allow HR to become a strategic partner in achieving organisational
goals.
The recruiting aspect there are number of websites for recruiting of employees in
companies some of the popular and important web sites in INDIA are listed below they
are
www.naukri.com
jobsahead.com
monsterindia.com
careerindia.com
placementindia.com
jobsearch.rediff.com
bestjobsindia.in
jobzing.com
cybermediadice.com
SAPWHAT IS IT ANYWAY?
S YSTEMS
A PPLICATIONS
P RODUCTS IN DATA PROCESSING
SAP HR is a global human resource management system solution, covers
HR
PAYROLL
TIME MANAGER
TRANSACTIONS CAPABILITIES
HUMAN RESOURCE INFORMATION SYSTEMS
ETC
The number of companies using SAP R/3's Human Resource (HR) module has
increased dramatically in the last few years, with many clients adding HR to
their live suite of modules, or even choosing HR as an initial or stand alone
implementation.
The SAP HR module enables customers to effectively manage information
about the people in their organization, and to integrate that information with
''other SAP modules'' and external systems. From the Organization
Management perspective, companies can
model a business hierarchy,
the relationships of employees to various business units
the reporting structure among employees.
helps employers to track employee master data,
work schedules,
salary and benefits information.
functionality focuses on employees' skills, qualifications and career plans
process attendance and absences, gross salary and tax calculations, and
payments to employees and third-party vendors.
Consistent with the overall integration of SAP R/3, the HR module shares
information with other modules, such as Financial Accounting (FI), Controlling
(CO), Production Planning and Business Workflow. The Payroll processes use
Accounts Payable functions to print checks, manage payment and bank
information, and process payments to tax authorities and other third-party
vendors. Payroll results are also posted to General Ledger accounts for use in
periodic income and expense reporting. For management accounting,
information regarding employment costs can be transferred to Cost Centers
with in the CO module. Employees can be assigned to Work Centers, which
are used in conjunction with Production Planning. Assigned positions and
reporting relationships from PD are used in Business Workflow to route
purchase requisitions and other documents for approval. HR works with
external systems either through certified interfaces with SAP partner
products, or custom developed interfaces to customer defined systems.
salary adjustments
Data stored in such a way that you can easily access and maintain at any time
Recruitment Module Overview
Functions you need for working through the entire recruitment process
Contains an entire range of powerful, flexible functions that you can use to implement
an effective and largely automated recruitment strategy such as:
Issuance of recruitment requests
Selection process of applicant
Applicant pool administration
Notification to applicants
Benefits Module Overview
Comprehensive method of administering employee benefits such as:
Health (medical and dental)
Insurance (Life)
Savings (Retirement)
Spending Accounts (Medical and Dependent Care)
Encompasses the key concepts and processes you need to manage extensive and
highly individual benefits packages for your employees
Open Enrollment
Employee Life-cycle Events (e.g. Marriage, Child, and Separation)
Compensation Management Module Overview
Toolset for strategic remuneration planning
Empowers managers to offer competitive and motivating remuneration
Fixed pay
Variable pay
Merit increases
Promotion
Includes Personnel Cost Planning
Allows experimenting with future projected costs
Training & Events Management Module Overview
Enables you to plan and manage business events
Training
Conferences
Interfaces with other R/3 components
Basis for extending and updating employees skills and knowledge
Flexible Reporting
Appraisal functions
Provide important decision support feedback to ensure the business events offered are
both high quality and effective
Personnel Development Module Overview
Human Resource Demand Forecasting depends on several factors, some of which are given
below.
a)
Employment trends;
b)
Replacement needs;
c)
Productivity;
d)
Absenteeism; and
e)
Expansion and growth.
PROBLEMS IN HRP PROCESS
The main problems in the process of HRP are as follows:
a) Inaccuracy: HRP is entirely dependent on the HR forecasting and supply, which cannot be a
cent per cent accurate
process.
b) Employee resistance: Employees and their unions feel that by HRP, their workload increases
so they resist the process.
c) Uncertainties: Labour absenteeism, labour turnover, seasonal employment, technological
changes and market fluctuations
are the uncertainties which HRP process might have to
face.
d) Inefficient information system: In Indian industries, HRIS is not much strong. In the absence
of reliable data it is not
possible to develop effective HRP.
e) Time and expense: HRP is time consuming and expensive exercice, so industries avoid.
Objective and Benefits of HRP
Human Resource planning
Human Resource Planning
Objective and Benefits of HRP
Human Resource Planning at Different Levels
HRP Process
HR Demand Forecasting
HR Supply Forecasting
Objectives of Human Resource Planning (HRP)
To recruit and maintain the HR of requisite quantity and quality.
To predict the employee turnover and make the arrangements for minimizing
turnover and filing up of consequent vacancies.
To meet the requirements of the programmes of expansion, diversification etc.
To anticipate the impact of technology on work, existing employees and future
human resource requirements.
To progress the knowledge, skill, standards, ability and discipline etc.
To appraise the surplus or shortage of human resources and take actions
accordingly.
To maintain pleasant industrial relations by maintaining optimum level and
structure of human resource.
To minimize imbalances caused due to non-availability of human resources of right
kind, right number in right time and right place.
To make the best use of its human resources; and
To estimate the cost of human resources.
So, human resource planning is required to achieve the objectives of estimating
potential human resources requirements; to cope with changing requirements of
the organisation taking into consideration the changing technology; to make full
utilization of the existing and potential workforce of the organisation; and career
planning of employees.
Benefits/Importance of Human Resource Planning
Human resource planning or manpower planning is necessary for ail organisations
because of following reasons:
To meet up requirements of the organisation: To do work in the organisation, every
organisation needs personnel of desired skill, knowledge and experience. This
human resources requirement of organisation can be effectively fulfilled through
proper human resource planning. It helps in defining the number of personnel as
well as kind of personnel required to satisfy its needs. It ensures the reservoir of
desired human resources as and when required.
Counterbalance insecurity and change: There must be proper utilisation of human
and non-human resources in the organisation. Sometimes the organisation may
have adequate non-human resources e.g. machines, materials and money but
inadequate human resources as a result, manufacturing process/production cannot
be started. Human resource planning helps to offset uncertainties and changes as
far as possible and enables to ensure availability of human resources of the right
kind, at right time and at right place.
It helps in checking labour imbalance: Human resource planning helps to anticipate
shortages and/or surpluses of manpower in the organisation. The shortage of
manpower as well as surplus of manpower is not good for the organisation. It
proves very expensive for the organisation. In case of shortage of human resources,
physical resources of the organisation cannot be properly utilized. In case of surplus
of human resources, this resource may remain under-utilized It helps in counter
balancing the problem of shortage and surplus employees very comfortably. Human
resource planning helps in correcting this imbalance before it become
unmanageable and expensive.
Right-sizing the human resource requirements of the organisation: In an existing
organisation, there is a constant need for right-sizing the organisation. In the
organisation, some posts may fall vacant as a result of retirement, accidents,
resignations, promotions or death of employees. Consequently, there is constant
need of replacing people. Human resource planning estimates future requirements
of the organisation and helps to ensure that human resources of right kind, right
number, in right time and right place.
To meet expansion and diversification needs of the organisation: It helps to execute
future plans of the organisation regarding expansion, diversification and
modernization. Through human resource planning it is ensured that employees in
right number and of right kind are available when required to meet these needs of
the organisation. It ensures that people of desired skills and knowledge are
available to handle the challenging job requirements.
Training and Development of Employees: There is constant need of training and
development of employees as a result of changing requirements of the
organisation. It provides scope for advancement and development of employees
through training and development etc. Thus, it helps in meeting the future needs of
the organisation of highly skilled employees.
Fulfill Individual Needs of the Employees: It helps to satisfy the individual needs of
the employees for promotions, transfer, salary encashment, better benefits etc.
Helps Formulation of Budgets: It helps in anticipating the cost of human resources
e.g. salary and other benefits etc. It facilitates the formulation of human resource
budget for various departments/divisions of the organisation. So, it may also help
(I) National Level: Generally, central government plans for human resources for the
entire nation. It anticipates the demand for and supply of human requirements at
the national level.
(ii) Sectoral Level: Central and state governments also plan human resource
requirements at sectoral level. It tries to satisfy needs of some particular sectors
like Agriculture Sector, Industrial Sector and Service Sector.
(iii) Industry Level: This level of planning is done to suit manpower needs of a
particular industry such as Engineering, Heavy Industries, Paper Industry,
Consumer Goods Industries. Public Utility Industries, Textile, Cement/Chemical
Industries etc.
(v) Departmental Level: This level of planning is done to suit the manpower needs
of a particular department in a company e.g. Marketing Department, Production
Department. Finance Department, etc.
(vi) Job Level: This level of planning fulfills the human resource needs of a particular
job family within department. For example, the requirement of number of sales
executes in the marketing department.
Need for HRP at Macro Level
Major reasons for the emphasis on HRP at macro level include:
Employment-Unemployment Situation: Though in general the number of educated unemployed
is on the rise, there is acute shortage for a variety of skills. This emphasises the need for more
effective recruitment and retaining people.
Technological Changes: The myriad changes in production technologies, marketing methods
and management techniques have been extensive and rapid. Their effect has been profound
on job contents and job contexts. These changes cause problems relating to redundancies,
retraining and redeployment. All these suggest the need to plan manpower needs intensively
and systematically.
Organizational Changes: In the turbulent environment marked by cyclical fluctuations and
discontinuities, the nature and pace of changes in organizational environment, activities and
structures affect manpower requirements and require strategic considerations.
Demographic Changes: The changing profile of the work force in terms of age, sex, litercy,
technical inputs and social background have implications for HRP.
Skill Shortages: Unemployment does not mean that the labour market is a buyers market.
Organizations have generally become more complex and require a wide range of specialist
skills that are rare and scarce. Problems arise when such employees leave.
Governmental Influences: Government control and changes in legislation with regard to
affirmative action for disadvantaged groups, working conditions and hours of work, restrictions
on women and child employment, casual and contract labout, etc. have stimulated the
organizations to become involved in systematic HRP.
Legislative Controls: The days of executive fiat and hire and fire policies are gone. Now
legislation makes it difficult to reduce the size of an organization quickly and cheaply. It is easy
to increase but difficult to shed the fat in terms of the numbers employed because of recent
changes in labour law relating to lay-offs and closures. Those responsible for managing
manpower must look far ahead and thus attempt to foresee manpower problems.
Impact of Pressure Groups: Pressure groups such as unions, politicians and persons displaced
from land by location of giant enterprises have been raising contradictory pressures on
name, date of birth, address, start date, starting wage, current wage, skills etc.)
Developing job descriptions, performance standards and appraisals.
E.W. Vetter has visualized resources planning as "a process by which an
organisation should move from its current manpower position to its desired
manpower position. Through planning, management strive to have the right
number and right kind of people at the right places, at the right time, doing things
which result in both the organisation and the individuals receiving maximum longrun benefit."
Under this method, estimated total production and activities for a specific future
period are predicted. This information is translated into number of man-hours
required to produce per units taking into consideration the capability of the
workforce. Past-experience of the management can help in translating the workloads into number of man-hours required. Thus, demand of human resources is
forecasted on the basis of estimated total production and contribution of each
employee in producing each unit items. The following example gives clear idea
about this technique.
Let us assume that the estimated production of an organisation is 3.00.000 units.
The standard man-hours required to produce each unit are 2 hours. The past
experiences show that the work ability of each employee in man-hours is 1500
hours per annum. The work-load and demand of human resources can be
calculated as under:
Estimated total annual production = 300000 units
Standard man-hours needed to produce each unit = 2 hrs
Estimated man-hours needed to meet estimated annual production (i x ii) =
600000 hrs
Work ability/contribution per employee in terms of man-hour = 1500 units
Estimated no. of workers needed (iii / iv) = 600000/1500 = 400 units
The above example clearly shows that 400 workers are needed for the year.
Further, absenteeism rate, rate of labour turnover, resignations, deaths, machine
break-down, strikes, power-failure etc. should also be taken into consideration while
estimating future demand of human resources/ manpower.
(c) Ratio-Trend Analysis: Demand for manpower/human resources is also
estimated on the basis of ratio of production level and number of workers available.
This ratio will be used to estimate demand of human resources. The following
example will help in clearly understanding this technique.
Estimated production for next year = 1,40,000 units
Estimated no. of workers needed
(on the basis of ratio-trend of 1: 200) will be = 700
(d) Econometrics Models: These models are based on mathematical and
statistical techniques for estimating future demand. Under these models
relationship is established between the dependent variable to be predicted (e.g.
manpower/human resources) and the independent variables (e.g., sales, total
production, work-load, etc.). Using these models, estimated demand of human
resources can be predicted.
(e) Delphi Technique: Delphi technique is also very important technique used for
estimating demand of human resources. This technique takes into consideration
human resources requirements given by a group of experts i.e. mangers. The
human resource experts collect the manpower needs, summarises the various
responses and prepare a report. This process is continued until all experts agree on
estimated human resources requirement.
(f) Other Techniques: The other techniques of Human Resources demand
forecasting are specified as under:
Estimating HR supply
The above figure illustrates that supply forecasting can be estimated based on the
following:
(a) Present/Existing human resources
(b) Potential Additions of human resources
(c) Potential Losses of human resources
(a) Present/Existing Human Resources
The first step in forecasting supply of human resources is to start with the
present/existing human resources of the organisation. Existing inventory of human
resources refers to the present inventory of human resources department-wise,
age-wise, sex-wise, marital-status wise, skill-wise, experience-wise, qualificationwise, training-wise and potential-wise. Internal mobility of employees as a result of
transfer and promotion etc. should also be evaluated. So, present inventory of
human resources is availability of talent in terms of skills, performance and
potential.
(b) Potential Additions of Human Resources
There may also be potential additions to the force of human resources. These
additions to human resources may be due to fresh recruitment, selections,
transfers and promotions of human resources in the various departments of the
organisation.
The most simple way of forecasting human resources supply is shown by the
following figure:
Job analysis
Define job analysis
Job analysis simply means analyzing of job description and job specification and see that there is right
match between them.
Or
Job Analysis is a process to identify and determine in detail the particular job duties and requirements and
the relative importance of these duties for a given job.
In the words of Dale Yoder. "A Job is a collection of duties, tasks and responsibilities which are assigned
to an individual and which is different from other assignment"
According to Michael J. Jucius, "Job analysis refers to the process of studying the operations, duties and
organisational aspects of jobs in order to derive specification or, as they are called by some job
description"
In the words of Edwin B. Flippo, "Job analysis is the process of studying and collecting information
relating to the operations and responsibilities of a specific job "
According to Blum, "A job analysis is an accurate study of the various components of a job. It is
concerned not only with an analysis of the duties and conditions of work, but also with the individual
qualifications of the worker."
According to John A Shubin "Job analysis is the methodical compilation and study of work data in order
to define and characterise each occupation in such a manner as to distinguish it from all others."
In the words of Scott, Clothier and Spriegel, "Job analysis is the process of critically evaluating the
operations, duties and relationship of the job."
In simple words Job analysis is a formal programme which examines the tasks, duties and responsibilities
contained in an individual unit of work.
Before the recruitment process, job analysis takes place.
Def: - A job is defined as a collection of duties and responsibilities which are given together to an
individual employee. Job analysis is the process of studying and collecting information relating to
operations and responsibilities of a specific job.
There are different methods used by organization to collect information and conduct the job analysis.
These methods are
Personal observation :In this method the observer actually observes the concerned worker. He makes a list of all the duties
performed by the worker and the qualities required to perform those duties based on the information
collected, job analysis is prepared.
Actual performance of the job :In this method the observer who is in charge of preparing the job analysis actually does the work himself.
This gives him an idea of the skill required, the difficulty level of the job, the efforts required etc.
Interview method :In this method an interview of the employee is conducted. A group of experts conduct the interview. They
ask questions about the job, skilled levels, and difficulty levels. They question and cross question and
collect information and based on this information job analysis is prepared.
Critical incident method :In this method the employee is asked to write one or more critical incident that has taken place on the job.
The incident will give an idea about the problem, how it was handled, qualities required and difficulty
levels etc. critical incident method gives an idea about the job and its importance. (a critical means
important and incident means anything which takes place in the job)
Questionnaire method :In this method a questionnaire is provided to the employee and they are asked to answer the questions in
it. The questions may be multiple choice questions or open ended questions. The questions decide how
exactly the job analysis will be done. The method is effective because people would think twice before
putting anything in writing.
Log records :Companies can ask employees to maintain log records and job analysis can be done on the basis of
information collected from the log record. A log record is a book in which employees record /write all the
activities performed by them on the job. The records are extensive as well as exhausted in nature and
provide a fair idea about the duties and responsibilities in any job.
HRD records :Records of every employee are maintained by HR department. The record contain details about
educational qualification, name of the job, number of years of experience, duties handled, any mistakes
committed in the past and actions taken, number of promotions received, area of work, core competency
area, etc. based on these records job analysis can be done.
Job design
Job Design
Job design is next to job analysis. Job design involves systematic attempts to
organize tasks, duties and responsibilities into a unit of work to achieve certain
objectives. Job design integrates the work content and qualifications required for
each job that meets the needs of employee and the organization. Job design makes
the job highly specialized and well designed jobs are important in attracting and
retaining a motivated work force.
According to Michael Armstrong, "Job Design is the process of deciding on the
contents of a job in terms of its duties and responsibilities, on the methods to be
used in carrying out the job, in terms of techniques, systems and procedures, and
on the relationships that should exist between the job holder and his superior
subordinates and colleagues."
Job analysis helps to develop job design and job design matches the requirements
of the job with the human qualities required to do the job.
Behavioral
Factors
Environmental
Factors
Task Characteristics
Feedback
Employee availability
and ability
Ergonomics
Work practices
Variety
1. Organizational factors:Organizational factors to refer to factors inside the organization which affect job
design they are
a) Task characteristics :Task characteristics refer to features of the job that is depending on the type of job
and the duties involved in it the organization will decide, how the job design must
be done. In case the company is not in a position to appoint many people; a single
job may have many duties and vice versa.
b) The process or flow of work in the organization :There is a certain order in which jobs are performed in the company. In case the
company wishes it could combine similar job and give it to one person this can be
done if all the jobs come one after the other in a sequence.
c) Ergonomics:Ergonomics refers to matching the job with physical ability and characteristics of
the individual and in providing an office environment which will help the person to
complete the jobs faster and in a comfortable manner.
d) Work practices :Every organization has different work practices. Although the job may be the same
the method of doing the job differs from company to company. This is called work
practice and it affects job design.
2. Environmental factors:-
Job Enrichment
Job Enlargement
Job Rotation
Job rotation is a management technique that assigns trainees to various jobs and
departments over a period of a few years.
A job design technique in which employees are moved between two or more jobs in
a planned manner. The objective is to expose the employees to different
experiences and wider variety of skills to enhance job satisfaction and to cross-train
them.
-------Business Dictionary.com
Job rotation implies systematic movement of employees from one job to the other.
Job remains unchanged but employees performing them shift from one job to the
other. With job rotation, an employee is given an opportunity to perform different
jobs, which enriches his skills, experience and ability to perform different jobs
Facts of Job Rotation
In some businesses, the object is to educate employees, giving them information
about other operations in the company. Not only does this peak the interest of many
on the payroll, but it can also allow employees to ask questions and suggest
improvements in areas they wouldnt normally see.
At another level of a larger company, managers and supervisors are sometimes
moved, in a series of planned job rotations. Business owners and operating officers
might use a rotation plan so that management personnel are familiar with various
sections of the business. Then, when the time comes to fill a vacant position due to
retirement, for example, there may be more than one candidate familiar with the
duties of that slot.
In certain industries and with work that involves physical labor, job rotation may be
used to avoid over-stressing some workers. The constant, repetitive use of the same
muscles can be one of the hazards of the workplace. Wise use of rotation may help
workers stay healthy, and maintain a good work atmosphere as well. Safety is often
a key consideration in this situation.
Job rotation involves shifting a person from one job to another, so that he is able to
understand and learn what each job involves. The company tracks his performance
on every job and decides whether he can perform the job in an ideal manner. Based
on this he is finally given a particular posting.
Job rotation is done to decide the final posting for the employee e.g. Mr. A is
assigned to the marketing department whole he learns all the jobs to be performed
for marketing at his level in the organization .after this he is shifted to the sales
department and to the finance department and so on. He is finally placed in the
department in which he shows the best performance
Job rotation gives an idea about the jobs to be performed at every level. Once a
person is able to understand this he is in a better understanding of the working of
organization
LG Electronics, IBM, TATA STEEL, McDonald's are a few companies which practice
Job Rotation.
There are few Drawbacks of Job Rotation Rigid employees not ready for it quits.
Adjustment problem in new job scenario with increased challenges and difficulties.
Adjustment problem with the timings if the company works in shifts.
Increased stress and peer pressure.
Advantages of job rotation
Avoids monopoly :- Job rotation helps to avoid monopoly of job and enable the
employee to learn new things and therefore enjoy his job
Provides an opportunity to broaden ones knowledge: - due to job rotation
the person is able to learn different job in the organization this broadens his
knowledge.
Avoiding fraudulent practice: - In an organization like bank jobs rotation is
undertaken to prevent employees from doing any kind of fraud i.e. if a person is
handling a particular job for a very long time he will be able to find loopholes in the
system and use them for his benefit and indulge ( participate ) in fraudulent
practices job rotation avoids this.
Disadvantages of Job Rotation
Frequent interruption :- Job rotation results in frequent interruption of work .A
person who is doing a particular job and get it comfortable suddenly finds himself
shifted to another job or department .this interrupts the work in both the
departments.
Reduces uniformity in quality :- Quality of work done by a trained worker is
different from that of a new worker .when a new worker I shifted or rotated in the
department, he takes time to learn the new job, makes mistakes in the process and
affects the quality of the job.
Misunderstanding with the union member :- Sometimes job rotation may lead
to misunderstanding with members of the union. The union might think that
employees are being harassed and more work is being taken from them. In reality
this is not the case.
Job Rotation
Job design
Job design
Job Rotation
Job Enrichment
Job Enlargement
Job Rotation
Job rotation is a management technique that assigns trainees to various jobs and
departments over a period of a few years.
A job design technique in which employees are moved between two or more jobs in
a planned manner. The objective is to expose the employees to different
experiences and wider variety of skills to enhance job satisfaction and to cross-train
them.
-------Business Dictionary.com
Job rotation implies systematic movement of employees from one job to the other.
Job remains unchanged but employees performing them shift from one job to the
other. With job rotation, an employee is given an opportunity to perform different
jobs, which enriches his skills, experience and ability to perform different jobs
Facts of Job Rotation
In some businesses, the object is to educate employees, giving them information
about other operations in the company. Not only does this peak the interest of many
on the payroll, but it can also allow employees to ask questions and suggest
improvements in areas they wouldnt normally see.
At another level of a larger company, managers and supervisors are sometimes
moved, in a series of planned job rotations. Business owners and operating officers
might use a rotation plan so that management personnel are familiar with various
sections of the business. Then, when the time comes to fill a vacant position due to
retirement, for example, there may be more than one candidate familiar with the
duties of that slot.
In certain industries and with work that involves physical labor, job rotation may be
used to avoid over-stressing some workers. The constant, repetitive use of the same
muscles can be one of the hazards of the workplace. Wise use of rotation may help
workers stay healthy, and maintain a good work atmosphere as well. Safety is often
a key consideration in this situation.
Job rotation involves shifting a person from one job to another, so that he is able to
understand and learn what each job involves. The company tracks his performance
on every job and decides whether he can perform the job in an ideal manner. Based
on this he is finally given a particular posting.
Job rotation is done to decide the final posting for the employee e.g. Mr. A is
assigned to the marketing department whole he learns all the jobs to be performed
for marketing at his level in the organization .after this he is shifted to the sales
department and to the finance department and so on. He is finally placed in the
department in which he shows the best performance
Job rotation gives an idea about the jobs to be performed at every level. Once a
person is able to understand this he is in a better understanding of the working of
organization
LG Electronics, IBM, TATA STEEL, McDonald's are a few companies which practice
Job Rotation.
There are few Drawbacks of Job Rotation Rigid employees not ready for it quits.
Adjustment problem in new job scenario with increased challenges and difficulties.
Adjustment problem with the timings if the company works in shifts.
Increased stress and peer pressure.
One way businesses are focusing on this area is through job rotation, that is, moving
employees from job to job within the company, thereby allowing employees a
variety of tasks in their work and helping prevent boredom. While this process can
be costly to the company because employees must be trained in several different
areas, the cost tends to be balanced by the increase in morale and productivity. Job
rotation also gives each employee the opportunity to see how the different jobs of a
company fit together and gives the company more flexibility in covering tasks when
workers are absent. However, while job rotation is a good way to enrich employees'
jobs, it can also hinder performance: Having to know several different jobs in order
to rotate, can prevent employees from becoming proficient at any of the jobs.
Therefore, the advantages and disadvantages of job rotation as an enrichment
strategy have to be carefully weighed.
Task identity is a matter of realizing a visible outcome from performing a task.
Being able to see the end result of the work they do is an important motivator for
employees. One way to make task identity clearer is through job enlargement,
which means adding more tasks and responsibilities to an existing job. For example,
instead of building just one component part of a humidifier, a team of employees
builds the entire product from start to finish. When using job enlargement as an
enrichment strategy, it is important that enlarging the job gives the employee more
responsibility and more variety, not just more work.
Task significance involves how important the task is to others in the company,
which is important in showing employees how the work they do fits in with that
done in the rest of the organization. If employees can see how their work affects
others, it will be a motivator to do the best job they can.
Many companies take new employees on a tour of the company and provide
training sessions on how each part of the company works together with the other
parts. In order to accept and handle responsibility, it is important that employees
know how the various areas of the company work together; without this knowledge,
it is very difficult for them to handle decision-making responsibilities. Putting
employees from different areas of the company into planning teams can also help
them see the significance of the tasks they perform.
Autonomy involves the degree of freedom, independence, and decision-making
ability the employee has in completing assigned tasks. Most people like to be given
responsibility; it demonstrates trust and helps motivate employees to live up to that
trust. Responsibility can also help speed up work processes by enabling the
employee to make decisions without having to wait for management approval.
Autonomy is a very important part of job enrichment because it gives the employee
power and a feeling of importance.
A type of job enrichment that restructures work to best match the employee to the
job is job redesign. Job redesign can focus on combining existing jobs, forming work
groups, and/or allowing closer contact between employees and individual suppliers
or customers. The idea behind job redesign is to match employees with a job they
like and are best qualified to perform. Self-managed teams are a type of job design
whereby employees are grouped into teams and given certain guidelines to follow
as well as goals to accomplishand then left alone to accomplish those goals. Selfmanaged teams demonstrate the company's faith in the employees and give
employees a feeling of power and pride in the work they accomplish.
Feedback describes how much and what type of information about job
performance is received by the employee. It is one of the most important areas for
motivation. Without feedback, employees have no way of knowing whether they are
doing things correctly or incorrectly. Positive feedback helps to motivate employees
by recognizing the efforts they have put into their work. While monetary rewards for
doing a good job can be a strong incentive, sometimes saying "you did a really good
job on that project" can mean just as much. Corrective feedback is also important
because it lets employees know what areas need improvement.
Job Enrichment Options
The central focus of job enrichment is giving people more control over their work
(lack of control is a key cause of stress, and therefore of unhappiness.) Where
possible, allow them to take on tasks that are typically done by supervisors. This
means that they have more influence over planning, executing, and evaluating the
jobs they do.
In enriched jobs, people complete activities with increased freedom, independence,
and responsibility. They also receive plenty of feedback, so that they can assess and
correct their own performance.
Here are some strategies you can use to enrich jobs in your workplace:
Rotate Jobs Give people the opportunity to use a variety of skills, and perform
different kinds of work. The most common way to do this is through job rotation.
Move your workers through a variety of jobs that allow them to see different parts of
the organization, learn different skills and acquire different experiences. This can be
very motivating, especially for people in jobs that are very repetitive or that focus
on only one or two skills.
Combine Tasks Combine work activities to provide a more challenging and
complex work assignment. This can significantly increase "task identity" because
people see a job through from start to finish. This allows workers to use a wide
variety of skills, which can make the work seem more meaningful and important.
For example, you can convert an assembly line process, in which each person does
one task, into a process in which one person assembles a whole unit. You can apply
this model wherever you have people or groups that typically perform only one part
of an overall process. Consider expanding their roles to give them responsibility for
the entire process, or for a bigger part of that process.
Identify Project-Focused Work Units Break your typical functional lines and form
project-focused units. For example, rather than having all of your marketing people
in one department, with supervisors directing who works on which project, you
could split the department into specialized project units - specific storyboard
creators, copywriters, and designers could all work together for one client or one
campaign. Allowing employees to build client relationships is an excellent way to
increase autonomy, task identity, and feedback.
Create Autonomous Work Teams This is job enrichment at the group level. Set
a goal for a team, and make team members free to determine work assignments,
schedules, rest breaks, evaluation parameters, and the like. You may even give
them influence over choosing their own team members. With this method, you'll
significantly cut back on supervisory positions, and people will gain leadership and
management skills.
Implement Participative Management Allow team members to participate in
decision making and get involved in strategic planning. This is an excellent way to
communicate to members of your team that their input is important. It can work in
any organization - from a very small company, with an owner/boss who's used to
dictating everything, to a large company with a huge hierarchy. When people realize
that what they say is valued and makes a difference, they'll likely be motivated.
Redistribute Power and Authority Redistribute control and grant more
authority to workers for making job-related decisions. As supervisors delegate more
authority and responsibility, team members' autonomy, accountability, and task
identity will increase.
Increase Employee-Directed Feedback Make sure that people know how well,
or poorly, they're performing their jobs. The more control you can give them for
evaluating and monitoring their own performance, the more enriched their jobs will
be. Rather than have your quality control department go around and point out
mistakes, consider giving each team responsibility for their own quality control.
Workers will receive immediate feedback, and they'll learn to solve problems, take
initiative, and make decisions.
Job enrichment provides many opportunities for people's development. You'll give
them lots of opportunity to participate in how their work gets done, and they'll
most-likely enjoy an increased sense of personal responsibility for their tasks.
Implementing a Job Enrichment Program
Step One Find out where people are dissatisfied with their current work
assignments. There's little point to enriching jobs and changing the work
environment if you're enriching the wrong jobs and making the wrong changes. Like
any motivation initiative, determine what your people want before you begin.
Surveys are a good means of doing this. Don't make the mistake of presuming that
you know what people want: Go to the source - and use that information to build
your enrichment options.
Step Two Consider which job enrichment options you can provide. You don't need
to drastically redesign your entire work process. The way that you design the
enriched jobs must strike a balance between operational need and job satisfaction.
If significant changes are needed, consider establishing a "job enrichment task
force" - perhaps use a cross-section of employees, and give them responsibility for
deciding which enrichment options make the most sense.
Step Three Design and communicate your program. If you're making significant
changes, let people know what you're doing and why. Work with your managers to
create an enriching work environment that includes lots of employee participation
and recognition. Remember to monitor your efforts, and regularly evaluate the
effectiveness of what you're providing.
Advantages of job enrichment
Interesting and challenging job :- When a certain amount of power is given to
employees it makes the job more challenging for them, we can say that job
enrichment is a method of employee empowerment.
Job enlargement is another method of job design when any organization wishes to
adopt proper job design it can opt for job enlargement. Job enlargement involves
combining various activities at the same level in the organization and adding them
to the existing job. It increases the scope of the job. It is also called the horizontal
expansion of job activities.
Definition: Job Enlargement is the horizontal expansion of a job. It involves the
addition of tasks at the same level of skill and responsibility. It is done to keep
workers from getting bored. It is different than job enrichment.
Examples: Small companies may not have as many opportunities for promotions, so
they try to motivate employees through job enlargement.
Job enlargement can be explained with the help of the following example - If Mr. A is
working as an executive with a company and is currently performing 3 activities on
his job after job enlargement or through job enlargement we add 4 more activities
to the existing job so now Mr. A performs 7 activities on the job.
It must be noted that the new activities which have been added should belong to
the same hierarchy level in the organization. By job enlargement we provide a
greater variety of activities to the individual so that we are in a position to increase
the interest of the job and make maximum use of employees skill. Job enlargement
is also essential when policies like VRS are implemented in the company.
Job enlargement is doing different tasks and not just the same thing all the time. It
may involve taking on more duties and adds variety to a person's job. Horizontal
loading is often used which is giving people more jobs to do that require the same
level of skill.
Job rotation is the movement between different jobs. One day a person may be
working in one part of the factory and the next day they may work in a different
part. This avoids the employee becoming bored as with job rotation they are doing
different jobs all the time and learning new skills. Multi skilling is when people have
many skills so they are able to carry out many different jobs. Multi skilling benefits
the employer as if they are short of staff in one area, they can move people across.
Advantages of job enlargement
Variety of skills :- Job enlargement helps the organization to improve and increase
the skills of the employee due to organization as well as the individual benefit.
Improves earning capacity :- Due to job enlargement the person learns many
new activities. When such people apply foe jobs to other companies they can
bargain for more salary.
Wide range of activities :- Job enlargement provides wide range of activities for
employees. Since a single employee handles multiple activities the company can try
and reduce the number of employees. This reduces the salary bill for the company.
Disadvantages of job enlargement
Increases work burden :- Job enlargement increases the work of the employee
and not every company provides incentives and extra salary for extra work.
Therefore the efforts of the individual may remain unrecognized.
Job Evaluation
Job evaluation is the process of analyzing and assessing various jobs systematically to
ascertain their relative worth in an organization.
Definitions of Job Evaluation
Below are given some important definitions of job analysis:
Job Evaluation involves determination of relative worth of each job for the purpose of
establishing wage and salary differentials. Relative worth is determined mainly on the basis of
Job Description and Job Specification only. Job Evaluation helps to determine wages and salary
grades for all jobs. Employees need to be compensated depending on the grades of jobs they
perform. Remuneration must be based on the relative worth of each job. Ignoring this basic
principle results in inequitable compensation and attendant ill effects on employees morale. A
perception of inequity is a sure way of de-motivating an employee.
According to Alford and Beatty. "Job evaluation is the application of the job analysis technique to the
qualitative measurement of relative job worth, for the purpose of establishing consistent wage rate
differentials by objective means. It measures the differences between jobs on the job requirements, and
establishes the differential numerically (job rating) so that it can be converted to wage rate after the wage
level is determined."
In the words of Edwin B. Flippo. "Job evaluation is a systematic and orderly process of determining the
worth of a job in relation to other jobs."
According to Kimball and Kimball Jr., "Job evaluation represents an effort to determine the relative
value of every job in a plant and to determine what the fair basic wage for such a job should be."
According to Bethel, Atwater and Smith et at, "Job evaluation as a personal term has both a specific
and genetic meaning specifically, it means job rating or the grading of occupations in terms of duties ;
generally it means the entire field of wages and salary administration along modern lines"
In the words of Maurice B. Cumming, "Job evaluation is a technique of assessing the worth of a job in
comparison with all other throughout an organisation"
According to Scott, Clothier and Spriegel, "Job evaluation or job rating is the operation of evaluating a
particular job in relation to other jobs either within or outside the organisation."
According to International Labour Organisation, "Job evaluation may be defined as an attempt to
determine and compare the demands which the normal performance of particular job makes on normal
workers without taking account of the individual abilities or performance of the workers concerned."
In the words of Dale Yoder, "Job evaluation is a practice which seeks to provide a degree of objectivity in
measuring the comparative value of jobs within an organisation and among similar organisations."
In the words of John A. Shubin, "Job evaluation is a systematic procedure for measuring the relative
value and importance of an occupation on the basis of their common factor (skill, training, efforts) for the
purpose of determining wages and salary differentials."
According to Bureau of Labour Statistics, "Job evaluation is the evaluation or rating of job to determine
their position in job hierarchy. The evaluation may be achievement through asssignment of points or the
use of some other systematic rating method for essential job requirements such as skill, experience and
responsibility."
Jobs are evaluated on the basis of content and placed in order of importance. This
establishes Job Hierarchies, which becomes the basis for satisfactory wage differentials
among various jobs.
Jobs are ranked (not jobholders)
PROCESS OF JOB EVALUATION:
Defining objectives of job evaluation
a)
Identify jobs to be evaluated (Benchmark jobs or all jobs)
b)
Who should evaluate job?
c)
What training do the evaluators need?
d)
How much time involved?
e)
What are the criteria for evaluation?
f)
Methods of evaluation to be used
2. Wage Survey
3. Employee Classification
4. Establishing wage and salary differentials.
Features of Job Evaluation
The primary objective of job evaluation is to find out the value of work, but this is a value
which varies from time to time and from place to place under the influence of certain
economic pressure, not least of which is the worth of money itself. The main features of
job evaluations are:
To supply bases for wage negotiation founded on facts rather than on vague intermediate ideas.
It attempts to assess jobs, not people.
Job evaluation is the output provided by job analysis.
Job evaluation does not design wage structure, it helps in rationalising the system by reducing number of
separate and different rates.
Job evaluation is not made by individuals rather it is done by group of experts.
Job evaluation determines the value of job. Further the value of each of the aspects such as skill and
responsibility levels are also related and studied in connection with the job.
Job evaluation helps the management to maintain high levels of employee productivity and employee
satisfaction.
The advantages flowing from it benefit all the organisation-management, workers, trade
unions and everyone:
Management: has the advantage of greater order in its pay arrangement and more
stable wage structure.
Unions: benefit from a greater sense of fairness and reasons in pay matters. Union can
play a more important role in determining the relation between different levels of pay
and in the joint regulation of work place conditions.
Employees: benefit because job evaluation provides an agreed framework for setting
question affecting jobs and so helps to prevent arbitrary decisions. It also helps to
ensure that differences in skill and responsibility are properly recognised.
Everyone: benefits from a system which enables the pay for new and revised jobs to be
settled in the same way as for existing jobs, because it helps to prevent anomalies.
JOB EVALUATION METHODS
After job analysis preparations of job descriptions comes the essential stage of job
evaluation, namely, the systematic comparison of jobs in order to establish a job
hierarchy. The techniques which have been commonly used tend to fall into one of the
two main categories:
Non-analytical or Non-quantitative or summary methods
Analytical or quantitative methods.
Non-analytical methods are:
1.
Job Ranking
2.
Job Classification or grading
Analytical methods are:
1.
Factor Comparison
2.
Point rating or assessment
These methods are briefly discussed below:
Non-analytical Methods
1.
Job Ranking Method
This is the oldest and simplest method of job evaluation. This is generally used in
smaller units where the job raters know all the jobs quite well. In this method no effort is
made to break a job down into its elements or factors, but the aim is to rather judge the
job as a whole and determine the relative value by ranking one whole job against
another whole job. In this technique ranking is done according to 'whole job' rather than
a number of compensable efforts.
In it a committee constituted of several executives studies job descriptions. Then jobs
are arranged from highest to lowest, in order of their value or merit to the organisation.
Jobs also can be arranged according to the relative difficulty in performing them. So
jobs are ranked in order of importance beginning with the most important to the least
important jobs in the organisation. Job at the top of the list has the highest value and
obviously the job at the bottom of the list will have the lowest value. This procedure is
followed for jobs in each department and an attempt is then made to equate or compare
jobs at various levels among the several departments. When this is completed, grade
levels are defined and salary groups are formed. Jobs are placed into different salary
ranges more or less on a predominated basis in their rank order.
Disadvantages:
1. No scientific approach: As there is no standard for an analysis of the whole job position, different
bases of comparison may occur. Importance of the job may be arbitrarily ranked resulting in differences in
similar jobs and may be resented by the employees.
2. No fair judgement: This method decides the ranks of the jobs on the basis of their importance but
does not tell the reasons. So ranks judgements are subjective and the fairness of the judgement cannot
be advocated.
3. Difficult for large organisation: In a complex industrial organisation, it is not possible to be familiar with
all the jobs and thus general description will not enable correct assessment of the relative importance of
the jobs
2.
Job Classification or Grading method
This method is one step further in the first method. This is similar to ranking method
because in both methods neither points nor money values are assigned to classify the
jobs. No complicated procedures are followed. It was evolved as an improvement over
the ranking method. Job descriptions and job specifications are widely used in it. The
committee of executives goes through each job description and carefully weights it in
the light of certain factors like skill, responsibilities, experience and type of work etc.
In this method a pre-determined number of job groups or job classes are established
and jobs are assigned to these classifications. In other words, classes or grades of jobs
are established first and then various jobs are fitted into these pre-
Disadvantages:
1. This is also a subjective method. Since personal evaluations by executives establish the major
classes and decide into
which grade each job shall be placed.
2. This system is not suitable for a large scale company. The jobs are classified by total contents and by
a factor
that comprise them. Therefore it is difficult to compile any comprehensive class
specification for a large scale organisation
with a number of complex jobs.
3. If in a concern detailed job analysis is not made, the judgement in respect of a total range of jobs may
lead to incorrect
results/classification.
4. The existing wage and salary rates affect the grading of jobs. The raters justify the existing salary
ranges. If the job
description justifies the lowering of the grade of a particular job, it cannot be
done because labour normally does not accept
any adverse condition of service.
5. Writing of a grade description is also a very difficult task. This system becomes more difficult to
operate if the number
of jobs increases in a concern.
Analytical Methods
1.
The Factor Comparison Method
This method is a combination of the ranking and point system. Thomas E. Hitten was
the first to originate factor comparison method of job evaluation. As originally developed
this method involves ranking of jobs in respect of certain factors and usually involves
the assigning of money wages to the job depending upon the ranking. This is more
systematic and scientific method. Under this method, jobs are evaluated by some
standards. In this method, instead of ranking complete jobs, each job is ranked
according to series of factors. All jobs are compared to each other for the purpose of
determining their relative importance by selecting four or five major job elements which
are more common or less common to all jobs. These elements are not pre-determined.
These are chosen on the basis of job analysis. The five factors which are commonly
used are (ij mental requirement (ii) skill (iii) physical requirement (iv) responsibilities and
(v) working conditions. The number of factors may be more than five. Pay will be
assigned in this method by comparing the weights of the factor required for each job,
i.e., the present wages paid for key jobs may be divided among the factors weighted by
importance. So the wages are assigned to the job in comparison to its ranking on each
job factor.
The major steps in this system consist of the following:
Selection of factors: They may be skill, mental and educational requirements, physical requirements
and responsibility, working conditions. The persons writing job specifications are generally provided with a
set of dimensions within which they have to perform this important work.
Selection of key jobs: Key jobs serve as a standard against which all other jobs are compared.
Generally a key job is one whose contents has become stabilized over a period of time and whose wage
rate is considered to satisfactory and acceptable by the management and union. The key jobs should be
a good sample representing the entire range. It is suggested that 15 to 20 jobs should be picked. All of
these should be clearly describable and capable of analysis in terms of factors.
Ranking of Key jobs: Rank the selected jobs under each factor (by each and every member of the job
evaluation committee) independently. Ranking is made individually and then a meeting is held to develop
a consensus.
Assign money value: Money value is assigned to each factor so as to determine the wage rate for each
key job. The basic pay for each 'key' job is allocated to each factor. This should reflect a range from the
lowest to the highest.
Comparing all jobs with key jobs: All other jobs are compared with the list of key jobs. This is done to
know their relative
importance and position in the scale of jobs.
Assembler 4
Janitor
5
4
5
5
1
5
4
2
1
Table: Allocation of Money Value to the different factors and Ranking of Jobs
under the Factor Comparison Method
For example, if tool making is a benchmark job and its wage rate is 20 money units; it
may be decided to assign nine of these to skill, five to mental requirements, two to
physical requirements, three to responsibility and one to working conditions. Similarly, if
the wage rate for another benchmark job. for example that of a machinist, amounts to
18 money units, eight of these may be allotted to skill, three to working conditions and
so on.
Advantages:
1. Factor comparison method permits a more systematic comparison of jobs than the non-analytical
methods. It is a
systematic, quantifiable method for which detailed step by step instructions
are available.
2. The system results in more accurate job evaluation as it is more objective because weights are not
selected arbitrarily.
3. It is flexible as it has no upper limit on rating that a job may receive on a factor.
4. The reliability and validity of the system are greater than the same statistical measures obtained from
group
standardised job analysis plans.
5. The procedure of rating new jobs by comparing with other standards or key job is logical and not too
difficult to
accomplish.
6. It utilizes few factors and thereby reduces the likelihood of overlapping.
7. It is a scheme that in corporate money value, determination of wage rates is automatic.
Disadvantages:
1. This method is comparatively complicated to apply and it is difficult to explain to workers.
2. It is costly to install, and somewhat difficult to operate for anyone who is not acquainted with the
general nature of
job-evaluation techniques.
3. The use of present wages for the key jobs may initially create errors into the plan. The contents and
the value of these
jobs may change over a period of time and they will lead to future errors.
4. It goes against the common belief that the procedure of evaluating jobs and fixing their wages should
be kept separate.
5. The use of five factors is a growth of the technique developed by its organisations. And using the
same five factors for all
organisation and for all jobs in an organisation may not always be appropriate.
6. It is a very expensive method/system of job evaluation because experts have to be appointed
particularly in selecting
weights which are based in actual analysis.
Sexual Harassment
Sexual Harassment
Legal Definitions of Sexual Harassment
Examples of Sexual Harassment
Types of Sexual Harassment
Effects of sexual harassment
Policies to Adopt to Prevent and Address Sexual Harassment
Role of Managers in Harassment Prevention and Investigation
How To Address an Employee Sexual Harassment Complaint
Sexual Harassment, different countries
1. Power-player - Legally termed "quid pro quo" harassment, these harassers
insist on sexual favors in exchange for benefits they can dispense because of their
positions in hierarchies: getting or keeping a job, favorable grades,
recommendations, credentials, projects, promotion, orders, and other types of
opportunities.
2. Mother/Father Figure (a.k.a. The Counselor-Helper) - These harassers will try
to create mentor-like relationships with their targets, all the while masking their
sexual intentions with pretenses towards personal, professional, or academic
attention.
3. One-of-the-Gang - Harassment occurs when groups of men or women
embarrass others with lewd comments, physical evaluations, or other unwanted
sexual attention. Harassers may act individually in order to belong or impress the
others, or groups may gang up on a particular target.
4. Serial Harasser - Harassers of this type carefully build up an image so that
people would find it hard to believe they would do anyone any harm. They plan their
approaches carefully, and strike in private so that it is their word against that of
their victims.
5. Groper - Whenever the opportunity presents itself, these harassers' eyes and
hands begin to wander, engaging in unwanted physical contact that may start
innocuous but lead to worse.
6. Opportunist - Opportunist use physical settings and circumstances, or
infrequently occurring opportunities, to mask premeditated or intentional sexual
behavior towards targets. This will often involve changing the environment in order
to minimize inhibitory effects of the workplace or school or taking advantage of
physical tasks to 'accidentally' grope a target.
7. Bully - In this case, a harasser uses physical threats to frighten and separate two
would be lovers who willfully are engaging with each other. The intent of the
harasser can be due to a range of reasons such as jealousy, racism, or their own
hidden sexual agendas. Normally the harasser attempts to physically separate the
two using their size or threats of physical violence and remains until they are
satisfied by the separation or can pursue their own sexual agenda against one of
the victims.
If you feel that you are the victim of sexual harassment, take action immediately. If
management is made aware of harassing conduct promptly, action can be quickly
taken to prevent a recurrence of such conduct. If an offender is counseled or
disciplined for sexually harassing behavior, the behavior should cease and others
will be discouraged from similar actions.
If you are a supervisor or manager, and an employee informs you of objectionable
behavior in the workplace, you must take immediate action.
You should talk to the individuals and find out all you can about the allegations.
You should immediately take appropriate corrective action, which may include
counseling or disciplinary action.
You cannot ignore the situation or cover-up the allegations. If you do, the agency
may be liable for damages and you may ultimately be subject to disciplinary action.
Contact your EEO or Human Resources Office if you need additional assistance or
guidance in handling a sexual harassment situation.
Policies to Adopt to Prevent and Address Sexual Harassment
Sexual harassment
Sexual Harassment
Legal Definitions of Sexual Harassment
Examples of Sexual Harassment
Types of Sexual Harassment
Effects of sexual harassment
Policies to Adopt to Prevent and Address Sexual Harassment
Role of Managers in Harassment Prevention and Investigation
How To Address an Employee Sexual Harassment Complaint
Sexual Harassment, different countries
Management should ensure that the Department's "zero tolerance" policy has been
distributed and is understood by all employees. Supervisors should also make it
clear that they will not tolerate any sexually harassing behavior among their
employees.
All employees must attend mandatory sexual harassment prevention training. Make
sure you attend a training session and understand the definitions, procedures, and
consequences of sexual harassment.
Employees must make an effort to keep the workplace professional and avoid
situations or topics of discussion of a sexual nature. What you might find humorous
others might, find offensive or disturbing.
You are better off being overly cautious about comments made in the workplace,
rather than taking chances. When in doubt, do not make the comment, joke, etc. It
is up to every employee in the workplace to set boundaries of appropriate and
inappropriate behavior. If you fear that your own behavior has been misunderstood,
Assure that no further incidents occur by following up, and documenting your
follow-up. with the employee who made the original harassment claim. Keep
documentation separate from the personnel file.
Afford the employee, who may have been wrongly accused, the same courtesy of
follow-up and documentation. Adjust working situations fairly where necessary for
the comfort and productivity of all.
United States
The U.S. Equal Employment Opportunity Commission (EEOC) is an
independent federal law enforcement agency that enforces laws against workplace
discrimination. The EEOC investigates discrimination complaints based on an
individual's race, color, national origin, religion, sex, age, perceived intelligence,
disability and retaliation for reporting and/or opposing a discriminatory practice. It is
empowered to file discrimination suits against employers on behalf of alleged
victims and to adjudicate claims of discrimination brought against federal agencies.
How Do I File a Formal Complaint?
The filing of an EEO complaint follows a number of standard procedures:
You must contact an EEO counselor within 45 days of the last harassing incident.
The names and telephone numbers of EEO counselors for your bureau should be
posted in the building where you work.
The EEO counselor will listen to your allegations and talk to the other involved
parties in order to attempt to reach informal resolution of the problem.
The EEO counselor will also offer you the opportunity to raise your allegations to the
bureau head and the Office of the Inspector General.
If the matter is not resolved within 30 days, and the counseling period has not been
voluntarily extended, the counselor will inform you of your right to file a formal
complaint.
The formal complaint must be filed within 15 days of receipt of written notice of
your right to file a formal complaint. Once a formal complaint has been filed, a
trained investigator will conduct an investigation into the complaint.
When you receive the investigative file, you will be given the option of either a
hearing before an Equal Employment Opportunity Commission Administrative Judge
or a final agency decision based on the existing record.
If you elect a hearing, one will be conducted by an EEOC Administrative Judge and a
recommended decision will be issued. The Department may accept, reject, or
modify the findings of the Administrative Judge.
When you receive the Department's final decision, you have the right to appeal to
the EEOC Office of Federal Operations within 30 days or to file suit in Federal court
within 90 days of the decision. Remember, it is illegal for the agency to take any
Israel
The 1998 Israeli Sexual Harassment Law interprets sexual harassment broadly, and
prohibits the behavior as a discriminatory practice, a restriction of liberty, an
offence to human dignity, a violation of every person's right to elementary respect,
and an infringement of the right to privacy. Additionally, the law prohibits
intimidation or retaliation that accommodates sexual harassment. Intimidation or
retaliation thus related to sexual harassment are defined by the law as "prejudicial
treatment". (Kamir, 2005)
Pakistan
Pakistan has adopted a Code of Conduct for Gender Justice in the Workplace that
will deal with cases of sexual harassment. The Alliance Against Sexual Harassment
At workplace (AASHA) announced they would be working with the committee to
establish guidelines for the proceedings. AASHA defines sexual harassment much
the same as it is defined in the U.S. and other cultures.
Philippines
The Anti-Sexual Harassment Act of 1995 was enacted "primarily to protect and
respect the dignity of workers, employees, and applicants for employment as well
as students in educational institutions or training centers. This law, consisting of ten
sections, provides for a clear definition of work, education or training-related sexual
harassment and specifies the acts constituting sexual harassment. It likewise
provides for the duties and liabilities of the employer in cases of sexual harassment,
and sets penalties for violations of its provisions. It is to be noted that a victim of
sexual harassment is not barred from filing a separate and independent action for
damages and other relief aside from filing the charge for sexual harassment."
Poland
There is no special provision in the employment law that provides for moral or
sexual harassment; however it is commonly accepted by the jurisprudence, that
sexual harassment occurs when the employee is subjected to acts of another
person in order to obtain favours of a sexual nature. Moral harassment occurs when
en employee is subjected to acts which may result in a deterioration of his
conditions of employment or undermine his rights and dignity as well as affect his
physical or moral health. These definitions are not legal ones, but definitions
accepted by the jurisprudence.
Russia
In the Criminal Code, Russian Federation, (CC RF), there exists a law which prohibits
utilization of an office position and material dependence for coercion of sexual
interactions (Article 118, current CC RF). However, according to the Moscow Center
for Gender Studies, in practice, the courts do not examine these issues.[33]
The Daily Telegraph quotes a survey in which "100 per cent of female professionals
[in Russia] said they had been subjected to sexual harassment by their bosses, 32
per cent said they had had intercourse with them at least once and another seven
per cent claimed to have been raped."
Switzerland
A ban on discrimination was included in the Federal Constitution (Article 4,
Paragraph 2 of the old Federal Constitution) in 1981 and adopted in Article 8,
paragraph 2 of the revised Constitution. The ban on sexual harassment in the
workplace forms part of the Federal Act on Gender Equality (GEA) of 24 March 1995,
where it is one of several provisions which prohibit discrimination in employment
and which are intended to promote equality. Article 4 of the GEA defines the
circumstances, Article 5 legal rights and Article 10 protection against dismissal
during the complaints procedure. Article 328, paragraph 1 of the Code of
Obligations (OR), Article 198 (2) of the Penal Code (StGB) and Article 6, paragraph 1
of the Employment Act (ArG) contain further statutory provisions on the ban on
sexual harassment. The ban on sexual harassment is intended exclusively for
employers, within the scope of their responsibility for protection of legal personality,
mental and physical well-being and health.
Article 4 of the GEA of 1995 defines sexual harassment in the workplace as follows:
Any behaviour of a sexual nature or other behaviour attributable to gender which
affronts the human dignity of males and females in the workplace. This expressly
includes threats, the promise of advantages, the application of coercion and the
exercise of pressure to achieve an accommodation of a sexual nature.
United Kingdom
The Discrimination Act of 1975, was modified to establish sexual harassment as a
form of discrimination in 1986. It states that harassment occurs where there is
unwanted conduct on the ground of a person's sex or unwanted conduct of a sexual
nature and that conduct has the purpose or effect of violating a person's dignity, or
of creating an intimidating, hostile, degrading, humiliating or offensive environment
for them. If an employer treats someone less favourably because they have
rejected, or submitted to, either form of harassment described above, this is also
harassment.
United States
There are a number of legal options for a complainant in the U.S.: mediation, filing
with the EEOC or filing a claim under a state Fair Employment Practices (FEP)
statute (both are for workplace sexual harassment), filing a common law tort, etc.
Not all sexual harassment will be considered severe enough to form the basis for a
legal claim. However, most often there are several types of harassing behaviors
present, and there is no minimum level for harassing conduct under the law.
(Boland, 2002) Many more experienced sexual harassment than have a solid legal
case against the accused. Because of this, and the common preference for settling,
few cases ever make it to federal court. The section below describes the legal
definitions that have been created for sexual harassment in the workplace. Similar
definitions have been created for academic environments in the U.S. Department of
Education Sexual Harassment Guidance
Sexual Harassment
Sexual Harassment
Sexual Harassment
Legal Definitions of Sexual Harassment
Examples of Sexual Harassment
Types of Sexual Harassment
Effects of sexual harassment
Policies to Adopt to Prevent and Address Sexual Harassment
Role of Managers in Harassment Prevention and Investigation
How To Address an Employee Sexual Harassment Complaint
Sexual Harassment, different countries
Sexual harassment, is intimidation, bullying or coercion of a sexual nature, or the
unwelcome or inappropriate promise of rewards in exchange for sexual favors. In
some contexts or circumstances, sexual harassment is illegal. It includes a range of
behavior from seemingly mild transgressions and annoyances to actual sexual
abuse or sexual assault. Sexual harassment is a form of illegal employment
discrimination in many countries, and is a form of abuse (sexual and psychological)
and bullying. For many businesses, preventing sexual harassment, and defending
employees from sexual harassment charges, have become key goals of legal
decision-making. In contrast, many scholars complain that sexual harassment in
education remains a "forgotten secret," with educators and administrators refusing
to admit the problem exists in their schools, or accept their legal and ethical
responsibilities to deal with it (Dziech, 1990).
Globalization and trade liberalization have resulted in the expansion of industrial
sectors where women constitute the majority of the workforce. This new opportunity
for employment, particularly in non-industrialized countries, has brought many
economic and social gains to women, helping them to overcome society's taboos
and restrictions on women's behavior. However, declining economic and social
conditions worldwide have forced women to work in low-paid jobs with little
security, benefits, or future. This type of industrial setting can often replicate the
patriarchal control that women work to escape from, often being exposed to sexual
harassment, poor conditions, and little health care or education opportunities. In
addition, women are expected to maintain their household and child-rearing duties.
Sexual harassment has developed into one of the most controversial, complex and
perhaps widespread HR problems in the world. One of the first attempts to measure
the extent of sexual harassment internationally was undertaken by
Redbook magazine in the USA. Of the 9000 women workers who responded to the
survey, 80% reported that they had experienced some form of unwanted attention
on the job."
A national study also undertaken in the USA of over 14 000 workers found that 42%
of the women and 14% of the men had experienced some form of sexual harassment in a three-years period. The study also found that only 5% of the men and
women who had experienced harassment chose to report it. The primary reasons
why the other 95% did not report their harassment include the following:
The fear of losing one's job;
The need for a future job reference;
The possibility of being considered a troublemaker;
The assumption that nothing would change if harassment was reported;
Concern about being accused of inviting the harassment;
A reluctance to draw public attention to private lives;
The prospect of emotional stress for filing a lawsuit and undergoing long, costly
legal procedures.
Sexual Harassment
Sexual Harassment
Sexual Harassment
Legal Definitions of Sexual Harassment
Examples of Sexual Harassment
Types of Sexual Harassment
Effects of sexual harassment
Policies to Adopt to Prevent and Address Sexual Harassment
Role of Managers in Harassment Prevention and Investigation
How To Address an Employee Sexual Harassment Complaint
Sexual Harassment, different countries
Sexual harassment, is intimidation, bullying or coercion of a sexual nature, or the
unwelcome or inappropriate promise of rewards in exchange for sexual favors. In
some contexts or circumstances, sexual harassment is illegal. It includes a range of
behavior from seemingly mild transgressions and annoyances to actual sexual
abuse or sexual assault. Sexual harassment is a form of illegal employment
discrimination in many countries, and is a form of abuse (sexual and psychological)
and bullying. For many businesses, preventing sexual harassment, and defending
employees from sexual harassment charges, have become key goals of legal
decision-making. In contrast, many scholars complain that sexual harassment in
education remains a "forgotten secret," with educators and administrators refusing
to admit the problem exists in their schools, or accept their legal and ethical
responsibilities to deal with it (Dziech, 1990).
Globalization and trade liberalization have resulted in the expansion of industrial
sectors where women constitute the majority of the workforce. This new opportunity
for employment, particularly in non-industrialized countries, has brought many
economic and social gains to women, helping them to overcome society's taboos
and restrictions on women's behavior. However, declining economic and social
conditions worldwide have forced women to work in low-paid jobs with little
security, benefits, or future. This type of industrial setting can often replicate the
patriarchal control that women work to escape from, often being exposed to sexual
harassment, poor conditions, and little health care or education opportunities. In
addition, women are expected to maintain their household and child-rearing duties.
Sexual harassment has developed into one of the most controversial, complex and
perhaps widespread HR problems in the world. One of the first attempts to measure
the extent of sexual harassment internationally was undertaken by
Redbook magazine in the USA. Of the 9000 women workers who responded to the
survey, 80% reported that they had experienced some form of unwanted attention
on the job."
A national study also undertaken in the USA of over 14 000 workers found that 42%
of the women and 14% of the men had experienced some form of sexual harassment in a three-years period. The study also found that only 5% of the men and
women who had experienced harassment chose to report it. The primary reasons
why the other 95% did not report their harassment include the following:
The fear of losing one's job;
The need for a future job reference;
The possibility of being considered a troublemaker;
The assumption that nothing would change if harassment was reported;
Concern about being accused of inviting the harassment;
A reluctance to draw public attention to private lives;
The prospect of emotional stress for filing a lawsuit and undergoing long, costly
legal procedures.
Recruitment
It is the process of attracting individuals on a timely basis, in sufficient numbers and with
appropriate qualifications, and encouraging them to apply for jobs with an organization.
Recruitment
Recruiting refers to the process of attracting potential job applicants from the
available labor force. Every organization must be able to attract a sufficient number
of the job candidates who have the abilities and aptitudes needed to help the
organization to achieve its objectives. An effective employee selection procedure is
limited by the effectiveness of recruiting process. Outstanding job candidates cannot
be selected if they are not included in the applicant pool. The recruitment process
also interacts with other personnel functions, especially performance evaluation
compensation training and development and employee relations. Recruiting is
typically a human resource function.
In planning recruiting activities, an organization needs to know how many applicants
must be recruited. Since some applicants may not be satisfactory an others may not
accept the job offers, an organization must recruit more applicants than it expects to
hire. Yield Ratios help organizations decide how many employees to recruit for each
job opening. These ratios express the relationship between the number of people at
one step of the recruitment process relative to the number of people who will move
to the next step. Now we will discuss the different sources of recruitment that are
available to organization:
Source of Recruitment:
Basically organizations are available by the two main sources of recruitment which are:
I. Internal Recruitment.
II. External Recruitment.
Vacancies in upper level management can be filled either by hiring people from outside the
organization or by promoting lower level mangers. Both strategies have advantages and disadvantages.
We will consider both internal and external recruitment sources in detail:
When job vacancies exist, the first place that an organization should look for placement is within itself.
An organizations present employees generally feel that they deserve opportunities to be promoted to
higher-level
positions because of their service and commitment to organization. More over organizations have
opportunities to examine the track records of its present employees and to estimate which of them
would be successful. Also recruiting among present employees is less expensive than recruiting from
outside the organization. The major forms of the internal recruiting include:
Promotion from within.
Job posting.
Contacts and referrals
a. Promotion from within:
Promoting entry level employees to more responsible positions is one of the best ways to fill job
vacancies and important reason why company should have a human resource planning system. An
organization that has human resource planning system uses succession plans and replacement charts to
identify and prepare individuals for upper level positions. Skills inventories are useful in identifying
individuals who have the potential for advancement, and individuals desire to be promoted can be
assessed in the performance appraisal review. A promotion from within policy is intrinsic to career
development and human resource planning. A promotion from within policy can stimulate great
motivation among employee, and this motivation is often accompanied by a general improvement in
the employee morale.
b. Job posting
An organization can also use the policy of job posting as a internal recruitment source. In the job
posting system the organization notifies its present employees about job openings through the use of
bulletin boards, company publications, or personal letters. The purpose of the job posting is to
communicate that the job opening exists. An effective job posting system involves the following
guidelines:
Job posting should be prominent. Clear job specification should be communicated so that applicants
assess themselves either they are eligible to apply or not. Once the decision is made, all applicants
should be informed about the decision. Job posting systems generally work quite well.
c. Contacts and Referrals:
Many firms have found that their employees can assist in the recruitment process. Employees may
actively solicit applications from their friends and associates. Before going outside to recruit
employees, many organizations ask present employees to encourage friends or relatives to apply for
the job openings. Contacts and referrals from the present employees are valuable sources of recruits.
Employee referrals are relatively inexpensive and usually produce quick responses. However some
organizations are concerned about problems that result from hiring friends of employees for example,
the practice of hiring friends and relatives favoritisms, cliques etc.
Advantages of Internal Recruitment:
Provides greater motivation for good performance.
Provides greater opportunities for present employees
Provides better opportunity to assess abilities
Improves morale and organizational loyalty
Enables employees to perform the new job with little lost time
Disadvantages of Internal Recruitment:
Creates a narrowing thinking and stale ideas
Creates pressures to compete
Creates homogeneous workforce
Chances to miss good outside talent Requires strong management development programs
specially to train for technology.
f) Older Individuals
Older workers, including those retired, may also comprise a valuable source of employees.
g) Military Personnel
Using this source may make sense to many employers because these individuals typically have a proven
work history, and are flexible, motivated, and drug free.
h) Self-Employed Workers
These individuals may provide a source of applicants to fill any number of jobs requiring technical,
professional, administrative, or entrepreneurial expertise.
EXTERNAL RECRUITMENT METHODS
Recruitment methods are the specific means through which potential employees are attracted to the
firm. a.
Advertising
A way of communicating the employment needs within the firm to the public through media such as
radio, newspaper, television, industry publications, and the Internet. Sometimes organizations can
perform the recruitment function through blind advertisements in blind advertisements no
identification about the company is provided to applicants. Companies can use blind advertisements
for many reasons e.g.
Company wants to keep the recruitment in low profile so that lesser number of applicants should apply
in order to discourage the irrelevant people. Due to bad reputation or image of the organization
Advertisement is made just for the purpose of test marketing fro example just to have knowledge
about the supply of applicants in labor market etc.
Employment Agencies
An organization that helps firms recruits employees and, at the same time, aids individuals in their
attempt to locate jobs. There are two types of the employment agencies i.e.
Public Employment Agencies.
Private Employment Agencies
Both of these sources provide coordination between the organizations and applicants who are searching
for jobs, for this service they use to charge a fee .Employment agencies are able to tailor their services
to the specific needs of the clients For example some agencies Specialize in a particular employment
areas, such as engineering, human resource or Computer programming, etc.
Recruiters
The most common use of recruiters is with technical and vocational schools, community colleges,
colleges, and universities.
Internships
A special form of recruiting that involves placing a student in a temporary job. There is no obligation
on the part of the company to permanently hire the student and no obligation on the part of the
student to accept a permanent position with the firm. Hiring college students to work as student
interns is typically viewed as training activity rather than as a recruiting activity. However,
organizations that sponsor internship programs have found that such programs represent an excellent
means of recruiting outstanding employees.
Executive Search Firms
Executive search firms sometimes called HEAD HUNTERS are specialized form of private employment
agencies that place top level executives and experienced professionals. These are the organizations
that seek the most-qualified executive available for a specific position and are generally retained by
the company needing a specific type of individual.
Professional Associations
Associations in many business professions such as finance, marketing, information technology, and
human resources provide recruitment and placement services for their members. Professional
associations and trade organizations provide a valuable service in bringing together professional and
professional job openings. Most professional organizations have newsletters, annual meetings and trade
publications that advertise job openings. The annual meetings of these organizations are good occasion
for professionals to learn about available job openings and for employers to interview potential
applicants.
Unsolicited Walk-In Applicants
If an organization has the reputation of being a good place to work, it may be able to attract good
Prospective employees without extensive recruitment efforts.
Virtual Job Fairs
Individuals meet recruiters face-to-face in interviews conducted over special computers that have
lenses that transmit head-and-shoulder images of both parties.
Cyber Recruiting
Organizations can also use web sites and internet sources to recruit people application submission test
and interview and other recruitment and selection activities can be performed online.
an e-mail using the Internet. Alternatively job seekers place their CVs in worldwide web,
which can be drawn by prospective employees depending upon their requirements.
The internet penetration in India is increasing and has tremendous potential. According
to a study by NASSCOM Jobs is among the top reasons why new users will come on
to the internet, besides e-mail. There are more than 18 million resumes floating online
across the world.
The two kinds of e-recruitment that an organisation can use is
Job portals i.e. posting the position with the job description and the job specification
on the job portal and also searching for the suitable resumes posted on the site
corresponding to the opening in the organisation.
Creating a complete online recruitment/application section in the companies own
website. - Companies have added an application system to its website, where the
passive job seekers can submit their resumes into the database of the organisation for
consideration in future, as and when the roles become available.
Resume Scanners: Resume scanner is one major benefit provided by the job portals to
the organisations. It enables the employees to screen and filter the resumes through
pre-defined criterias and requirements (skills, qualifications, experience, payroll etc.) of
the job.
Job sites provide a 24*7 access to the database of the resumes to the employees
facilitating the just-in-time hiring by the organisations. Also, the jobs can be posted on
the site almost immediately and is also cheaper than advertising in the employment
newspapers. Sometimes companies can get valuable references through the passersby applicants. Online recruitment helps the organisations to automate the recruitment
process, save their time and costs on recruitments.
Online recruitment techniques
Giving a detailed job description and job specifications in the job postings to attract
candidates with the right skill sets and qualifications at the first stage.
E-recruitment should be incorporated into the overall recruitment strategy of the
organisation.
A well defined and structured applicant tracking system should be integrated and the
system should have a back-end support.
Along with the back-office support a comprehensive website to receive and process job
applications (through direct or online advertising) should be developed.
Therefore, to conclude, it can be said that e-recruitment is the Evolving face of
recruitment.
Advantages & Disadvantages Of E-Recruitment
There are many benefits both to the employers and the job seekers but the erecruitment is not free from a few shortcomings. Some of the advantages and the
disadvantages of e-recruitment are as follows:
Advantages of E-Recruitment are:
Lower costs to the organisation. Also, posting jobs online is cheaper than advertising in
the newspapers.
No intermediaries.
Reduction in the time for recruitment (over 65 percent of the hiring time).
Facilitates the recruitment of right type of people with the required skills.
Improved efficiency of recruitment process.
Gives a 24*7 access to an online collection of resumes.
Online recruitment helps the organisations to weed out the unqualified candidates in an
automated way.
Recruitment websites also provide valuable data and information regarding the
compensation offered by the competitors etc. which helps the HR managers to take
various HR decisions like promotions, salary trends in industry etc.
Disadvantages of E-Recruitment
Apart from the various benefits, e-recruitment has its own share of shortcomings and
disadvantages. Some of them are:
Screening and checking the skill mapping and authenticity of million of resumes is a
problem and time consuming exercise for organisations.
There is low Internet penetration and no access and lack of awareness of internet in
many locations across India.
Organisations cannot be dependant solely and totally on the online recruitment
methods.
In India, the employers and the employees still prefer a face-to-face interaction rather
than sending e-mails.
The recruiting aspect there are number of websites for recruiting of employees in
companies some of the popular and important web sites in INDIA are listed below they
are
www.naukri.com
jobsahead.com
monsterindia.com
careerindia.com
placementindia.com
jobsearch.rediff.com
bestjobsindia.in
jobzing.com
cybermediadice.com
Employee Selection
Employee Selection
Selection is the process of examining the applicants with regard to their suitability
for the given job or jobs, and choosing the best from the suitable candidates and
rejecting the others. Thus, you will notice that this process is negative in nature in the
sense that rejection of candidates is involved.
Definition:
To select mean to choose. Selection is the process of picking individuals who have relevant
qualifications to fill jobs in an organisation. The basic purpose is to choose the individual who
can most successfully perform the job from the pool of qualified candidates.
Purpose
The purpose of selection is to pick up the most suitable candidate who would meet the
requirements of the job in an organisation best, to find out which job applicant will be successful,
if hired. To meet this goal, the company obtains and assesses information about the applicants in
terms of age, qualifications, skills, experience, etc. the needs of the job are matched with the
profile of candidates. The most suitable person is then picked up after eliminating the unsuitable
applicants through successive stages of selection process. How well an employee is matched to a
job is very important because it is directly affects the amount and quality of employees work.
Any mismatched in this regard can cost an organisation a great deal of money, time and trouble,
especially, in terms of training and operating costs. In course of time, the employee may find the
job distasteful and leave in frustration. He may even circulate hot news and juicy bits of
negative information about the company, causing incalculable harm to the company in the long
run. Effective election, therefore, demands constant monitoring of the fit between people the
job.
Recruitment Vs selection
RECRUITMENT
Recruitment refers to the process of finding possible candidates for a job or function, undertaken by
recruiters. It may be undertaken by an employment agency or a member of staff at the business or
organization looking for recruits. Advertising is commonly part of the recruiting process, and can occur
through several means: through newspapers, using newspaper dedicated to job advertisement, through
professional publication, using advertisements placed in windows, through a job center, through campus
interviews, etc.
Suitability for a job is typically assessed by looking for skills, e.g. communication skills, typing skills,
computer skills. Evidence for skills required for a job may be provided in the form of qualifications
(educational or professional), experience in a job requiring the relevant skills or the testimony of
references. Employment agencies may also give computerized tests to assess an individual's "off-hand"
knowledge of software packages or typing skills. At a more basic level written tests may be given to
assess numeracy and literacy. A candidate may also be assessed on the basis of an interview.
Sometimes
candidates will be requested to provide a rsum (also known as a CV) or to complete an application
form to provide this evidence.
SELECTION
Selection is the process used to identify and hire individuals or groups of individuals to fill vacancies
within an organization. Often based on an initial job analysis, the ultimate goal of personnel selection is to
ensure an adequate return on investment--in other words, to make sure the productivity of the new hire
warrants the costs spent on recruiting and training that hire.
Several screening methods exist that may be used in personnel selection. Examples include the use of
minimum or desired qualifications, resume/application review, oral interviews, work performance
measures (e.g., writing samples), and traditional tests (e.g., of job knowledge).
The field of personnel selection has a long history and is associated with several fields of research and
application, including human resources and industrial psychology.
Types of Tests: The various tests used in selection can be put in to four categories:
a) Achievement or Intelligence Tests,
b) Aptitude or Potential Ability Tests,
c) Personality Tests, and (d) Interest Tests.
These tests and what they measure are described below.
a) Achievement or Intelligence Tests
These are also called proficiency tests. These measure the skill or knowledge which is acquired as a
result of a training programme and on the job experience. These measure what the applicant can do.
These are of two types:
Test for Measuring job Knowledge: These are known as Trade Tests. These are administered to
determine knowledge of typing, shorthand and in operating calculators, adding machines, dictating and
transcribing machines or simple mechanical equipment. These are primarily oral tests consisting of a
series of questions which are believed to be satisfactorily answered only by those who know and
thoroughly understand the trade or occupation. Oral tests may be supplemented by written, picture or
performance types.
Work Sample Tests: These measure the proficiency with which equipment can be handled by the
candidate. This is done by giving him a piece of work to judge how efficiently he does it. For example, a
typing test would provide the material to be typed and note the time taken and mistakes committed.
b) Aptitude or Potential Ability Tests
These tests measure the latent ability of a candidate to learn a new job or skill. Through these tests you
can detect peculiarity or defects in a persons sensory or intellectual capacity. These focus attention on
particular types of talent such as learning, reasoning and mechanical or musical aptitude. Instruments
used are variously described as tests of intelligence, mental ability, mental alertness, or simply as
personnel tests.
These are of three types:
i) Mental Tests: These measure the overall intellectual ability or the intelligence quotient (I.Q.) of a
person and enable us to know whether he has the mental capacity to deal with new problems. These
determine an employees fluency in language, memory, interaction, reasoning, speed of perception, and
spatial visualisation.
ii) Mechanical Aptitude Tests: These measure the capacity of a person to learn a particular type of
mechanical work. These are useful when apprentices, machinists, mechanics, maintenance workers,
and mechanical technicians are to be selected.
iii) Psychomotor or Skill Tests: These measure a persons ability to do a specific job. These are
administered to determine mental dexterity or motor ability and similar attributes involving muscular
movement, control and coordination. These are primarily used in the selection of workers who have to
perform semi-skilled and repetitive jobs, like assembly work, packing, testing, inspection and so on.
c) Personality Tests
These discover clues to an individuals value system, his emotional reactions, maturity and his
characteristic mood. The tests help in assessing a persons motivation, his ability to adjust himself to the
stresses of everyday life and his capacity for interpersonal relations and for projecting an impressive
image of himself. They are expressed in terms of the relative significance of such traits of a person as
self-confidence, ambition, tact, emotional control, optimism, decisiveness, sociability, conformity,
objectivity, patience, fear, distrust, initiative, judgement, dominance, impulsiveness, sympathy, integrity,
and stability. These tests are given to predict potential performance and success for supervisory or
managerial jobs. The personality tests are basically of three types:
i) Objective Tests: These measure neurotic tendencies, self-sufficiency, dominance, submission and
self-confidence.
ii) Projective Tests: In these tests, a candidate is asked to project his own interpretation onto certain
standard stimuli. The way in which he responds to these stimuli depends on his own values, motives and
personality.
iii) Situation Tests: These measure an applicants reaction when he is placed in a peculiar situation, his
ability to undergo stress and his demonstration of ingenuity under pressure. These tests usually relate to
a leaderless group situation, in which some problems are posed to a group and its members are asked to
reach some conclusions without the help of a leader.
d) Interest Tests
These tests are designed to discover a persons areas of interest and to identify the kind of work that will
satisfy him. The interest tests are used for vocational guidance, and are assessed in the form of answers
to a well-prepared questionnaire.
Limitations of Selection Tests: From the basic description of tests described above, one should not
conclude that a hundred per cent prediction of an individuals on-the job success can be made through
these tests. These tests, at best, reveal that candidates who have scored above the predetermined cutoff points are likely to be more successful than those who have scored below the cut-off point.
Tests are useful when the number of applicants is large. Moreover, tests will serve no useful purpose if
they are not properly constructed or selected or administered. Precautions in using Selection Tests: Test
results can help in selecting the best candidates if the following precautions are taken:
Norms should be developed as a source of reference on all tests used in selection and on a
representative sample of people on a given job in the same organization. This is necessary even though
standard tests are available now under each of the above categories. Norms developed where should
not be blindly used because companies differ in their requirements, culture, organization structure and
philosophy.
Some Warm up should be provided to candidates either by giving samples of test, and/or answering
queries before the test begins.
Tests should first be validated for a given organization and then administered for selection of personnel to
the organization.
Each test used should be assigned a weightage in the selection.
Test scoring, administration and interpretation should be done by persons having technical competence
and training in testing.
INTERVIEW [Stage 4]
We shall now discuss the post application form interview and not the preliminary interview. Personal
interview is the most universally used tool in any selection process.
Meaning and Purpose: An interview is a conversation with a purpose between one person on one side
and another person or persons on the other. An employment interview should serve three purposes, viz.,
(i) obtaining information, (ii) giving information, and (iii) motivation. It should provide an appraisal of
personality by obtaining relevant information about the prospective employees background, training work
history, education and interests. The candidate should be given information about the company, the
specific job and the personnel policies. It should also help in establishing a friendly relationship between
the employer and the applicant and motivate the satisfactory applicant to want to work for the company or
organization. In practice, however, it may turn out to be a one-sided affair. It helps only in obtaining
information about the candidate. The other two purposes are generally not served.
Types of Interview
Informal Interview: This is may take place anywhere. The employer or a manager in the personnal
department, may ask a few questions, like name, place of birth, previous experience, etc. It is not planned
and is used widely when the labour market is tight and you need workers very badly. A friend or a relative
of the employer may take a candidate to the house of the employer or manager where this type of
interview may be conducted.
Formal Interview: This held in a more formal atmosphere in the employment office by the employment
officer with the help of well-structured questions. The time and place of the interview are stipulated by the
employment office.
Planned Interview: This is a formal interview carefully planned. The interviewer has a plan of action
worked out in relation to time to be devoted to each candidate, type of information to be sought,
information to be given, the modality of interview and so on. He may use the plan with some amount of
flexibility.
Patterned Interview: This is also a planned interview but planned to a higher degree of accuracy,
precision and exactitude. A list of questions and areas are carefully prepared. The interviewer goes down
the list of questions, asking them one after another.
Non-directive Interview: This is designed to let the interviewee speak his mind freely. The interviewer is
a careful and patient listener, prodding whenever the candidate is silent. The idea is to give the candidate
complete freedom to sell himself without encumbrances of the interviewers questions.
Depth Interview: This is designed to intensively examine the candidates background and thinking and
to go into considerable detail on a particular subject to special interest to the candidate. The theory
behind it is that if the candidate is found good in his area of special interest, the chances are high that if
given a job he would take serious interest in it.
Stress Interview: This is designed to test the candidate and his conduct and behavior by putting him
under conditions of stress and strain. This is very useful to test the behavior of individuals under
disagreeable and trying situations.
Group Interview: This is designed to see how the candidates react to and against each other. All the
candidates may be brought together in the office and they may be interviewed. The candidates may,
alternatively, be given a topic for discussion and be observed as to who will lead the discussion, how they
will participate in the discussion, how each will make his presentation and how they will react to each
others views and presentation.
Panel Interview: This is done by members of the interview board or a selection committee. This is done
usually for supervisory and managerial positions. It pools the collective judgement and wisdom of
members of the panel. The candidate may be asked to meet the panel individually for a fairly lengthy
interview.
Interview Rating: Important aspects of personality can be categorized under the following seven main
headings:
Physical Make-up: Health, physique, age, appearance, bearing, speech.
Attainments: Education, occupational training and experience.
Intelligence: Basic and effective.
Special Aptitudes: Written and oral fluency of expression, numeracy, organizational ability,
administrative skill.
Interests: Intellectual, practical, physically active, social, artistic
Disposition: Self-reliance, nature, motivation, acceptability.
Circumstances: Domestic, social background and experience, future prospects.
This is called The Seven Point Plan. The importance of each of these points will vary from organization
to organization and from job to job. Hence, these should be assigned weightage according to their degree
of importance for the job.
On the basis of information gathered through an interview, each candidate should be rated in respect of
each point given above as: (i) outstanding, (ii) good, (iii) above average, (iv) below average or (v)
unsatisfactory. Marks should be allotted to each of these, and the score for each point is arrived at by
multiplying it by weights and the total of all these will determine the final position of a candidate at the
interview.
Limitations of Interviews: Interviews have their own limitations in matters of selection. Some of these
are mentioned below:
Subjective judgement of the interviewer may be based on his prejudices, likes, dislikes, biases, etc.
One prominent characteristic of a candidate may be allowed to dominate appraisal of the entire
personality.
The interviewers experience may have created a close association between some particular trait and a
distinctive type of personality.
Some managers believe that they are good at character analysis based on some pseudo-scientific
methods and are guided by their own abilities at it.
Qualities of Good interviewers as: A good interviewer should have the following qualities:
Knowledge of the job or other things with which interviews are concerned.
Emotional maturity and a stable personality.
Sensitivity to the interviewees feelings and a sympathetic attitude.
Extrovert behavior and considerable physical and mental stamina.
Guidelines for Improving Interviews: Not all interviews are effective. Their effectiveness can be
improved if the following points are kept in mind by an interviewer:
An interview should have a definite time schedule with ample time for interview. It should not be hurried.
The impersonal approach should be avoided.
Interview should have the necessary element of privacy.
The interviewer should listen carefully to what the applicant says and the information collected should be
carefully recorded either while the interview is going on or immediately thereafter.
Attention should be paid not just to the words spoken, but also to the facial expressions and mannerisms
of the interviewee.
The interview should end when sufficient information has been gathered.
The interviewee should be told where he standswhether he will be contacted
later, whether he is to visit another person, or it appears that the organization will not be able to use his
abilities.
Pseudo-Scientific Methods of Selection: In the past, and to some extent even now, stereotyped
impressions of personality and characteristics were used as a basis of selection. These impressions were
gathered through pseudo-scientific methods, like phrenology, physiognomy and graphology.
We shall briefly describe below these methods for your background knowledge only:
Phrenology: Here it is believed that the strength of each faculty is indicated by prominent bumps on
certain parts of the skull.
Physiognomy: Here it is believed that there is a definite correlation between facial features and
psychological functions and behaviour, for example, thin lips indicate
Determination, broad jaws signify tenacity and so on.
Graphology: Here it is believed that there is a close relationship between handwriting and personality.
PHYSICAL EXAMINATION [Stage 5]
Applicant who get over one or more of the preliminary hurdles are sent for a physical examination either
to the organizations physician or to a medical officer approved for the purpose.
Purposes: A physical examination serves the following purposes:
PHRENOLOGY
Which focuses on personality and character, Phrenology is the study of the structure of
the skull to determine a person's character and mental capacity. In this science in which
the personality traits of a person were determined by "reading" bumps and fissures in
the skull. Developed by German physician Franz Joseph Gall around 1800
.Phrenologists would run their fingertips and palms over the skulls of their patients to
feel for enlargements or indentations. The phrenologist would usually take
measurements of the overall head size using a caliper. With this information, the
phrenologist would assess the character and temperament.
GRAPHOLOGY
The term graphology was first used by the Frenchman Michon in 1875, from the Greek grapho meaning
I write, and logos meaning theory. The study of handwriting and its analysis was first developed by the
Chinese 3,000 years ago. The Romans used graphology is the study and analysis of handwriting
especially in relation to human psychology. It is now an accepted and increasingly used technique for
assessment of people in organizations. Handwriting analysis is an effective and reliable indicator of
personality and behaviour, and so is a useful tool for many organizational processes, for example:
recruitment, interviewing and selection, team-building, counseling, and career-planning. Handwriting must
be studied taking into consideration the size and slant of letters, word spacing, line spacing the way zones
are used, pressure and margins applied.
Example:
Small size hand writing
Such persons are meticulous and observant, reserved and restrained. They are
mentally alert but lack self-confidence.
Large size
Such persons are bold and aggressive. They are ambitious, enthusiastic and extrovert.
Lacks concentration and discipline. Strongly motivated, confident and optimistic.
Moderate size
Such persons are conservative, conventional and traditional, practical and realistic.
They are honest, sincere, adaptable and moderate in attitude.
Variable size
Such persons are moody and quick-tempered. They are indecisive and inconsistent.
They are naive and immature, unpredictable and emotionally off-balance.
Extreme Left Slant
Such persons have a repressed
Child hood and are fearful of the life itself.
They are emotionally withdrawn,
Apprehensive of intimacy and defensive.
Extremely Right Slant
This pattern indicates insecurity and impulsiveness.
Such persons are sensitive, possessive and intense.
At times they are unrestrained and capable of hysteria.
Heavy Pressure
Such persons are aggressive, possessive violent and egoistic. They are creative
enthusiastic, sensuous and enduring. It shows an emotionally strong and deeply
committed person
Light pressure
Such persons are sensitive, tender, tolerant, spiritual, adaptable and forgiving. They are
passively indifferent,weak-willed and lack vitality. It indicates physically weak and fragile
person who prefers pastel colors.
PHYSIOGNOMY
Is the assessment of a person's character or personality from their outer appearance, especially the face.
The term physiognomy can also refer to the general appearance of a person, object or terrain, without
reference to its implied characteristics.
The practice was well-accepted by the ancient Greek philosophers but fell into disrepute in the Middle
Ages when practiced by vagabonds and mountebanks. It was then revived and popularized by Johann
Kaspar Lavater before falling from favour again in the 20th century. It is now being revived again as some
new research indicates that people's faces can indicate such traits as trustworthiness, social
dominance and aggression. The latter trait seems to be determined by the level of the
hormone testosterone during puberty which affects the ratio between the height and width of the face aggressive individuals are found to have wider faces.
Physiognomy of Men
Height:A tall man is usually a symbol of good personality of man. A tall man with wellproportioned body parts is lucky and leads a comfortable life. A short statured man is
sexy in nature; often he is clever and cunning.
Head : If the head is round and big in size, it denotes that such a person will be a good
administrator and will hold a good position in life. When the head is level and full of hair,
it indicates an intelligent, witty nature full of good qualities. If the head is more broad
than long, it means that such a person will be unlucky and devoid of wealth. If the head
is small, the person will be devoid of intelligence and will not be so lucky.
Ears: When the ears of a man are small in size, it indicates his foolish nature. a long
eared person is very often intelligent. If the ears are twisted and hard like stone, the
person will be stout of body and wrestler. If the ear frame is thin, the person will either
be a king or a scholar, but if it is thick, he will be a cheat, unreliable and may commit evil
acts.
Physiognomy of Women
Eyebrows: When the eyebrows are like a bow and the hair is soft, black and neither
scanty nor bushy, that is the sign not only of beauty but also of good luck and strong
character. When the eyebrows are hairless or have scanty hair, it is an omen of bad
luck. When eyebrows join in centre above the nose it is a sign of widowhood. Such a
woman is wicked and a cheat. If the eyebrows are straight, lengthy, thick, ill formed and
reddish, with broken joints, it indicates an unlucky woman. When the eyebrows are
curved and bent over the eyelids, black coloured, soft, of even thickness, it is a sign of a
lucky damsel.
Hair: Long, dark hair is considered as part of beauty. Shoulder length hair (naturally)
indicates a self-praising, envious and jealous woman. If the hair is red in color, the
woman is considered to be harsh tempered, quarrelsome and ill natured. Black and
curly hair indicates that the woman is lucky and wealthy. A woman with thick, coarse,
short and rough hair is considered to have bad luck. When hair is soft, silky, thin, dark,
very long up to knees, it is an indication of beauty and good luck.
Nose: If the nose of a woman is hooked like a parrot, she is good natured, enjoys
fame, is clever and a well-wisher of her family. A straight nose and of normal length
makes a woman beautiful, wise, witty and diligent. A woman with a small nose is
cunning, shrewd, mischievous and lustful. If the nose is depressed in the middle, the
front part very high, crooked or very fat, then such a woman will be devoid of love and
sympathy. she will be wicked, cruel, loose in character and hasty in decision. If the
nostrils are fat and wide, the woman will be lazy, strong headed, proud and fond of a
pleasurable life. If the tip of the nose is small, the woman will pass her life as a slave. If
the tip of the nose is long, she will be of harsh temperament. If the tip is depressed, it is
an omen for longevity of her husband. If there is hair on her nose, she is shrewd and
unlucky.
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PHRENOLOGY
Which focuses on personality and character, Phrenology is the study of the structure of
the skull to determine a person's character and mental capacity. In this science in which
the personality traits of a person were determined by "reading" bumps and fissures in
the skull. Developed by German physician Franz Joseph Gall around 1800
.Phrenologists would run their fingertips and palms over the skulls of their patients to
feel for enlargements or indentations. The phrenologist would usually take
measurements of the overall head size using a caliper. With this information, the
phrenologist would assess the character and temperament.
GRAPHOLOGY
The term graphology was first used by the Frenchman Michon in 1875, from the Greek grapho meaning
I write, and logos meaning theory. The study of handwriting and its analysis was first developed by the
Chinese 3,000 years ago. The Romans used graphology is the study and analysis of handwriting
especially in relation to human psychology. It is now an accepted and increasingly used technique for
assessment of people in organizations. Handwriting analysis is an effective and reliable indicator of
personality and behaviour, and so is a useful tool for many organizational processes, for example:
recruitment, interviewing and selection, team-building, counseling, and career-planning. Handwriting must
be studied taking into consideration the size and slant of letters, word spacing, line spacing the way zones
are used, pressure and margins applied.
Example:
PHYSIOGNOMY
Is the assessment of a person's character or personality from their outer appearance, especially the face.
The term physiognomy can also refer to the general appearance of a person, object or terrain, without
reference to its implied characteristics.
The practice was well-accepted by the ancient Greek philosophers but fell into disrepute in the Middle
Ages when practiced by vagabonds and mountebanks. It was then revived and popularized by Johann
Kaspar Lavater before falling from favour again in the 20th century. It is now being revived again as some
new research indicates that people's faces can indicate such traits as trustworthiness, social
dominance and aggression. The latter trait seems to be determined by the level of the
hormone testosterone during puberty which affects the ratio between the height and width of the face aggressive individuals are found to have wider faces.
Physiognomy of Men
Height:A tall man is usually a symbol of good personality of man. A tall man with wellproportioned body parts is lucky and leads a comfortable life. A short statured man is
sexy in nature; often he is clever and cunning.
Head : If the head is round and big in size, it denotes that such a person will be a good
administrator and will hold a good position in life. When the head is level and full of hair,
it indicates an intelligent, witty nature full of good qualities. If the head is more broad
than long, it means that such a person will be unlucky and devoid of wealth. If the head
is small, the person will be devoid of intelligence and will not be so lucky.
Ears: When the ears of a man are small in size, it indicates his foolish nature. a long
eared person is very often intelligent. If the ears are twisted and hard like stone, the
person will be stout of body and wrestler. If the ear frame is thin, the person will either
be a king or a scholar, but if it is thick, he will be a cheat, unreliable and may commit evil
acts.
Physiognomy of Women
Eyebrows: When the eyebrows are like a bow and the hair is soft, black and neither
scanty nor bushy, that is the sign not only of beauty but also of good luck and strong
character. When the eyebrows are hairless or have scanty hair, it is an omen of bad
luck. When eyebrows join in centre above the nose it is a sign of widowhood. Such a
woman is wicked and a cheat. If the eyebrows are straight, lengthy, thick, ill formed and
reddish, with broken joints, it indicates an unlucky woman. When the eyebrows are
curved and bent over the eyelids, black coloured, soft, of even thickness, it is a sign of a
lucky damsel.
Hair: Long, dark hair is considered as part of beauty. Shoulder length hair (naturally)
indicates a self-praising, envious and jealous woman. If the hair is red in color, the
woman is considered to be harsh tempered, quarrelsome and ill natured. Black and
curly hair indicates that the woman is lucky and wealthy. A woman with thick, coarse,
short and rough hair is considered to have bad luck. When hair is soft, silky, thin, dark,
very long up to knees, it is an indication of beauty and good luck.
Nose: If the nose of a woman is hooked like a parrot, she is good natured, enjoys
fame, is clever and a well-wisher of her family. A straight nose and of normal length
makes a woman beautiful, wise, witty and diligent. A woman with a small nose is
cunning, shrewd, mischievous and lustful. If the nose is depressed in the middle, the
front part very high, crooked or very fat, then such a woman will be devoid of love and
sympathy. she will be wicked, cruel, loose in character and hasty in decision. If the
nostrils are fat and wide, the woman will be lazy, strong headed, proud and fond of a
pleasurable life. If the tip of the nose is small, the woman will pass her life as a slave. If
the tip of the nose is long, she will be of harsh temperament. If the tip is depressed, it is
an omen for longevity of her husband. If there is hair on her nose, she is shrewd and
unlucky.
Motivational Aspects
MOTIVATIONAL ASPECTS
Reward management is about the development, implementation, maintenance, communication
and evaluation of reward processes. A substantial literature does exist that focuses on the
relationship between reward systems and the degree to which participative management is
practiced. If an organisation wishes to operate in a participative manner, it needs to change all its
systems, including its reward system. This line of reasoning goes back to the early writings on
the Scanlon plan and writings of McGregor. They argue rather convincingly that for effective
participative management a different approach to pay for performance is required. They go on to
suggest that the correct approach is to pay bonuses based on group or plant-wide performance.
The argument for this essentially rests on the point that traditional pay plans support individual
excellence at the cost of team performance.
For success of participative management team performance needs to be rewarded. Of late,
reward system practices are changing in consistent with participative management. For example,
gain sharing has become increasingly popular in the last decade, and skill-based pay plans have
replaced job-based plans in many manufacturing locations practicing participative management.
Reward systems influence attraction and retention of employees. Overall, those organisations
that give the most rewards tend to attract and retain the most people (Lawler, 1971). This seems
to occur because high reward levels lead to high satisfaction, which in turn leads to lower
turnover and more job applicants.
The best performers represent a particularly interesting retention problem. To retain them, a
reward system has to work on a par with those received by individuals performing similar jobs at
a similar level in other organisations. The emphasis here is on external comparisons because
turnover means leaving an organisation for a better situation as well. One way to accomplish this
is to reward everyone at a level that is above the reward levels in other organisations.
When certain specifiable conditions exist, reward systems have been demonstrated to motivate
performance. However, performance motivation depends on the situation, how it is perceived,
and the needs of people. The connection between performance and rewards must be visible, and
a climate of trust and credibility must exist in the organisation. The belief that performance will
lead to rewards is essentially a prediction about the future. For individuals to make this kind of
prediction, they have to trust the system that is promising them the rewards. Unfortunately, it is
not always clear how a climate of trust in the reward system can be established.
Just as reward systems motivate performance, they can motivate the learning of skills and the
development of knowledge (Lawler, 1990). Individuals need to see a connection between
learning specific skills and a valued reward. Pay for performance systems may motivate learning
and development because individuals perceive that they must develop their skills in order to
perform effectively. Sometimes pay for performance systems may discourage individuals from
learning new skills or motivate them to learn wrong skills. This can happen when the skills that
should be learned are not directly related to present performance.
The reward systems in hierarchical organisations acts as a strong motivation to learn those skills
that are perceived to lead to promotion. To counter this tendency some organisations are using
skill-based pay when they want individuals to add new skills that do not involve promotions.
Reward systems also contribute to the overall culture and climate of an organisation. Depending
on how reward systems are developed, administered, and managed, they may cause the culture
of an organisation to vary quite widely. For example, they may influence the degree to which it
is seen as a human resources-oriented culture, an entrepreneurial culture, an innovative culture, a
competence-based culture, and aparticipative culture.
Reward systems are often a significant cost factor in organisations. Indeed, the pay system alone
represents about 40 per cent of an organisations operating cost. Pay systems involve direct pay
and benefit costs, as well as the costs associated with managing and operating the system.
Reward Systems
REWARD SYSTEMS
One of the important attributes of work organisation is its ability to give rewards to their members. Pay,
promotions, fringe benefits, and status symbols are perhaps the most important rewards. Because these
rewards are important, the way they are distributed have a profound effect on the quality of work life as
well as on the effectiveness of organisations.
Organizations typically rely on reward systems to do four things:
1)
motivate employees to perform effectively,
2)
motivate employees to join the organisation,
3)
motivate employees to come to work, and
4)
motivate individuals by indicating their position in the organisation structure.
There are several principles for setting up an effective reward system in an organisation:
Give value to the reward system. Employees must have a preference for the types of rewards being offered. Many
employees prefer cash awards and plaques. Some employees like to see their name in the company newsletter.
Others like the public recognition surrounding award ceremonies.
Make the reward system simple to understand. Elaborate procedures for evaluating performance, filling out forms,
and review by several levels of management lead to confusion. The system must be easy to understand if it is to be
used effectively.
Lay down performance standards within the control of the team.
Make the reward system fair and effective.
Ensure participation in the reward system.
Involve people in the reward process and empower them to do the needful.
Most organisations use different types of rewards. Examples of recognition and rewards include money,
plaques, trophies, certificates or citations, public recognition, official perquisites, special assignments,
parties or celebrations or other meaningful considerations. The most common are wages or salary,
incentive systems, benefits and perquisites, and awards. For majority of people, the most important
reward for work is the pay they receive. For one thing, an effectively planned and administered pay
system can improve motivation and performance.
Money may not actually motivate people. Surprisingly, there is no clear evidence that increased earnings
will necessarily lead to higher performance. A great deal of research has been done on what determines
whether an individual will be satisfied with the rewards he or she receives from a situation. The following
five conclusions can be reached about what determines satisfaction with rewards:
1)
Satisfaction with reward is a function of both how much is received and how much the individual
feels should be received. When individuals receive less thanthey feel they should receive, they are
dissatisfied. When they receive more than they feel they should, they tend to feel guilty and
uncomfortable.
2)
Peoples feelings of satisfaction are influenced by comparisons with what happens to others. These
comparisons are made both inside and outside the organisations they work in, and are usually made with
similar people. Individuals tend to rate their inputs higher than others.
3)
In addition to obvious extrinsic rewards individuals receive (e.g., pay, promotion, status symbols),
they also may experience internal feelings that are rewarding to them. These include feelings of
competence, achievement, personal growth, and self-esteem. The overall job satisfaction of most people
is determined both by how they feel about their intrinsic rewards and how they feel about their extrinsic
rewards.
4)
People differ widely in the rewards they desire and how much important the different rewards are to
them. One group feels money is the most important, while another group feels interesting work and job
content is. Both groups, of course, are able to find examples to support their point of view.
5)
Many extrinsic rewards are important and satisfying only because they lead to other rewards, or
because of their symbolic value.
An effective reward system should link reward to performance. Workers who work hard and produce more
or give better quality results should receive greater rewards than poor performers. Also, criteria for
receiving rewards should be clear and employees should know whether they are going to receive rewards
for quality performance, innovation, effort or attendance. Management must ensure that workers perceive
distribution of rewards as equitable. Furthermore, for organisations to attract, motivate and retain qualified
and competent employees, they must offer rewards comparable to their competitors.
Competence-Related Pay
Competence-related pay may be defined as a method of rewarding people wholly or partly by reference to
the level of competence they demonstrate in carrying out their roles. This definition has two important
points: (1) pay is related to competence, and (2) people may be rewarded with reference to their level of
competence.
Competence-related pay is not about the acquisition of competence. It is about the effective use of
competence to generate added value. Competence-related pay works through the processes of
competence analysis of individual competences and levels of competence.
Skill-Based Pay
kill-based pay links pay to the level of skills used in the job and, sometimes, the acquisition and
application of additional skills by the person carrying out the job. The term is sometimes used
interchangeably with competence-related pay. But skill-based pay is usually concerned with the skills
used by manual workers, including fitters, fabricators, and operators. In competence-related pay
schemes, the behaviours and attributes an individual has to use to perform a role effectively are assessed
in addition to pure skills. Skill- based pay may in many ways seem to be a good idea, but its
potential costs as well as its benefits need to be evaluated rigorously before its introduction. Initially they
may provide strong motivation for individuals to increase their skills. But they may outlive their usefulness
and hence need to be revised or even replaced if they are no longer cost effective.
Team-Based Rewards
Team-based rewards are payments or other forms of non-financial rewards provided to members
of a formally established team which are linked
to the performance of that team. Team based rewards are shared amongst the members of teams
in accordance with a scheme or ad hoc basis for exceptional achievements. Rewards for
individuals may also be influenced by assessments of their contribution to team results. To
develop and manage team rewards it is necessary to understand the nature of teams and how they
function. Team-based rewards are not always easy to design or manage.
Profit Sharing
Profit sharing is better known, older and more widely practiced than gain sharing. Profit sharing is
associated with participative management theories. Profit sharing is a group-based organisation plan. The
fundamental objectives of profit sharing are: (a) to encourage employees to identify themselves more
closely with the company by developing a common concern for its progress; (b) to stimulate a greater
interest among employees in the affairs of the company as a whole; and (c) to encourage better
Gain Sharing
Gain sharing is a formula based company or factory-wide bonus plan which provides for employers to
share in the financial gain made as a result of its improved performance. The fundamental aim of gain
sharing is to improve organizational performance by creating a motivated and committed workforce as
part of a successful company. The traditional forms of gain sharing are the Scanlon Plan and Rucker
Plan.
The success of a gain sharing plan depends on creating a feeling of ownership that first applies to the
plan and then extends to the operation. When implementing gain sharing a company must enlist the
involvement of all employees so that it can increase their identity with, and their commitment to, the plan,
and build a large core of enthusiastic supporters. There are three main principles on which gain sharing is
based ownership, involvement, and commitment.
The potential benefits of gain sharing are that if focuses the attention of all employees on the key issues
affecting performance and enlists the support of all employees towards this. It also encourages teamwork
and cooperation at all levels.
Gain sharing differs from profit sharing in at least three ways. First, under gain sharing, rewards are
based on a productivity measure rather than profits. The goal is to link pay to performance outcomes that
employees can control. Second, gain sharing plans usually distribute any bonus payments with greater
frequency (e.g., monthly or quarterly versus annually). Third, gain sharing plans distribute payment during
the current payment rather than deferring them as profit sharing plans often do.
Lawler (1971, 1990) has summarised some of the common results that have been found in research
studies of gain sharing plans:
Coordination, teamwork, and sharing of knowledge are enhanced at lower levels.
Social needs are recognised via participation and reinforcing group behaviour.
Attention is focussed on cost savings, not just quantity of production.
Acceptance of change due to technology, market and new method is greater
because higher efficiency leads to bonuses.
Attitudinal change occurs among workers, and they demand more efficient management, better planning, and good
performance from their co-workers.
Employees try to reduce overtime to work smarter.
Employees produce ideas as well as effort.
When unions are present, more flexible administration of union-management relations occur.
When unions support the plan, they are strengthened because better work situations and higher pay result.
Unorganised locations tend to remain non-union.
There are, however, certain limitations of gain sharing plans. Perhaps the most important is differentially
attracting and retaining the best performers. As gain sharing plans do not pay more for better
performance, they do not necessarily motivate them to stay. Unlike profit sharing it pays bonus even when
the organisation is not earning profits. Moreover, gain sharing plans do not fit in with every situation.
Stock Options
The stock option is the most popular long-term incentive. A stock option is the right to purchase a specific
number of shares of company stock at a specific price during a period of time. The price at which the
employee can buy the stock is equal to the market price at the time the stock option was granted. The
employees gain is equal to the market value of the stock at the time it is exercised, less the grant price.
The assumption is that the price of the stock will go up, rather than go down or stay the same. Several
trends have increased the attractiveness of stock options as a long-term executive incentive and retention
tool.
Stock options are similar in many ways to profit sharing plans. The basis for payouts is organisational
performance in the stock market. Important goals of the plan are:
a.
to motivate employees to act in the best interest of the organisation as a whole;
b.
to enhance employee identification with the organisation; and
c.
to have labour
costs vary with the organisational performance. Stock options have long been a common programme for
executives, but some organizations, like Pepsi-Cola and Hewlett-Packard, grant them to all employees.
There is evidence that this approach is becoming more widespread.
Merit Pay
Merit pay is the most widely used approach for paying performance. Merit pay systems typically give
salary increases to individuals based on their supervisors appraisal of their performance. The purpose of
merit pay is to improve motivation and to retain the best performers by establishing a clear performance
reward relationship. Considerable evidence suggests that most organisations performance appraisal is
not done well and as a result, good measures of individual performance do not exist.
Employee Ownership
A number of plans exist that help get some or all of the ownership of a company into the hands of
employees. These include stock option plans, stock purchase plans, and Employee Stock Ownership
Plans (ESOPs). In small organisations in which participative management is practiced it has a good
chance of increasing organisational performance. In a large organisation with little employee ownership, it
may positively affect the structure by creating integration across the total organization if, of course, all
employees are included in the ownership plan. Ownership can have a more positive impact on attraction
and retention than does profit sharing. The usefulness of employee ownership, however, is likely to be
highly situational. For instance, in the case of small organisations they might make profit sharing and gain
sharing unnecessary, and if combined with an appropriate approach to employee involvement, they can
contribute substantially to employee motivation. In a large organisation they may contribute to the
integration of the organisation and to a positive culture.
Employee Benefits
Employee benefits are elements of remuneration given in addition to the various forms of cash pay.
They provide a quantifiable value for individual employees, which may be deferred or contingent like a
pension scheme, insurance cover or sick pay, or may provide an immediate benefit like a company car. It
also includes elements that are not strictly remuneration, such as annual holidays. Benefits in general do
not exist in isolation. They are a part of comprehensive compensation package offered by the
organisation.
The objectives of employee benefits are: (a) to increase the commitment of employees to the
organisation; (b) to demonstrate that the company cares for the needs of its employees; (c) to meet the
personal security and personal needs of the employees; and (d) to ensure that benefits are cost-effective
in terms of commitment, and improvement in recruitment and retention rates.
Benefits represent a large share of total compensation and, therefore, have a great potential to influence
the employee, unit, and organisational outcome variables. The empirical literature indicates that benefits
do indeed have effects on employee attitudes, retention, and perhaps job choice. Further, it appears that
individual preferences may play a particularly important role in determining employee reactions to
benefits. Consequently, many organisations have implemented benefit plans that permit some degree of
employees choice in the hope that a better match between preferences and benefits will be obtained,
perhaps at a lower total cost to the employer.
Statutory and Voluntary Benefits
Employee benefits may be classified as statutory and voluntary. Statutory benefits are to be given to the
employees by the organisation regardless of whether it wants to or not. For instance, social security
benefits under the Workmens Compensation Act, Employees State Insurance Act, Employees Provident
Fund and Miscellaneous Provisions Act, Maternity Benefit Act, and Payment of Gratuity Act are statutory
benefits. The Industrial Disputes Act, 1947 also provides for compensation in cases of
lay-off, retrenchment and closure of industrial establishments.
The menu of voluntary benefits offered to employees by employers is quite astounding, and carry
significant cost to the employer. The major voluntary benefits are: vacations, holidays, special leave, sick
leave, health insurance, educational assistance, employee discounts, medical benefits, recreational
facilities, subsidized meals in canteens, credit cards, and mobile telephones.
Flexible Benefits
There are significant individual differences in benefit preferences. Such individual differences, of course,
lend greater weight to the need for offering employees a choice in the design of their benefits package.
Flexible benefits plan will help control costs and enhance employee satisfaction.
When an employer considers offering benefits to employees, one of the main considerations is to keep
costs down. Traditionally, employers attempted to do that by providing a slate of benefits to their
employees irrespective of their need or use. Companies learn, in due course, that these benefits offered
did little to motivate their employees, or to provide an incentive to be more productive. Employees viewed
benefits as given. This fact coupled with the rising costs of benefits and a desire to
allow employees to choose what they want led employers to search for flexible benefits.
The term flexible benefits refers to a system whereby employees are presented with a set of benefits and
are asked to select, within monetary limits imposed, the benefits they desire. The aim of flexible benefits
programmes is to confer specific advantages to both the employee and the employer. The employees
have the freedom to choose benefits that are tailored to their specific needs. In some cases, it motivates
employees and leads to increased morale. It helps the employer to decide the nature and quantum of
benefits, and manage the costs more effectively. Also it helps in attracting and retaining quality employees
in an organisation. However, the main disadvantage of flexible benefits is: (a) wrong selection of benefits
in some cases; (b) keeping track with changing benefit needs of employees; and (c) the administrative
complexities involved in actual operation.
Trends in Employee Benefits
Less attention to tax avoidance
Greater simplification of benefit package
More attention to individual needs
Great emphasis on individual choice
A move towards cash rather than benefits in kind
Greater concentration on assessing the cost/effectiveness of total benefit package
More attention to communicating the benefits package
problems in other parts because of the comparisons made between different parts.
Motivational Aspects
MOTIVATIONAL ASPECTS
Reward management is about the development, implementation, maintenance, communication
and evaluation of reward processes. A substantial literature does exist that focuses on the
relationship between reward systems and the degree to which participative management is
practiced. If an organisation wishes to operate in a participative manner, it needs to change all its
systems, including its reward system. This line of reasoning goes back to the early writings on
the Scanlon plan and writings of McGregor. They argue rather convincingly that for effective
participative management a different approach to pay for performance is required. They go on to
suggest that the correct approach is to pay bonuses based on group or plant-wide performance.
The argument for this essentially rests on the point that traditional pay plans support individual
excellence at the cost of team performance.
For success of participative management team performance needs to be rewarded. Of late,
reward system practices are changing in consistent with participative management. For example,
gain sharing has become increasingly popular in the last decade, and skill-based pay plans have
replaced job-based plans in many manufacturing locations practicing participative management.
Reward systems influence attraction and retention of employees. Overall, those organisations
that give the most rewards tend to attract and retain the most people (Lawler, 1971). This seems
to occur because high reward levels lead to high satisfaction, which in turn leads to lower
turnover and more job applicants.
The best performers represent a particularly interesting retention problem. To retain them, a
reward system has to work on a par with those received by individuals performing similar jobs at
a similar level in other organisations. The emphasis here is on external comparisons because
turnover means leaving an organisation for a better situation as well. One way to accomplish this
is to reward everyone at a level that is above the reward levels in other organisations.
When certain specifiable conditions exist, reward systems have been demonstrated to motivate
performance. However, performance motivation depends on the situation, how it is perceived,
and the needs of people. The connection between performance and rewards must be visible, and
a climate of trust and credibility must exist in the organisation. The belief that performance will
lead to rewards is essentially a prediction about the future. For individuals to make this kind of
prediction, they have to trust the system that is promising them the rewards. Unfortunately, it is
not always clear how a climate of trust in the reward system can be established.
Just as reward systems motivate performance, they can motivate the learning of skills and the
development of knowledge (Lawler, 1990). Individuals need to see a connection between
learning specific skills and a valued reward. Pay for performance systems may motivate learning
and development because individuals perceive that they must develop their skills in order to
perform effectively. Sometimes pay for performance systems may discourage individuals from
learning new skills or motivate them to learn wrong skills. This can happen when the skills that
Reward Systems
REWARD SYSTEMS
One of the important attributes of work organisation is its ability to give rewards to their members. Pay,
promotions, fringe benefits, and status symbols are perhaps the most important rewards. Because these
rewards are important, the way they are distributed have a profound effect on the quality of work life as
well as on the effectiveness of organisations.
Organizations typically rely on reward systems to do four things:
1)
motivate employees to perform effectively,
2)
motivate employees to join the organisation,
3)
motivate employees to come to work, and
4)
motivate individuals by indicating their position in the organisation structure.
There are several principles for setting up an effective reward system in an organisation:
Give value to the reward system. Employees must have a preference for the types of rewards being offered. Many
employees prefer cash awards and plaques. Some employees like to see their name in the company newsletter.
Others like the public recognition surrounding award ceremonies.
Make the reward system simple to understand. Elaborate procedures for evaluating performance, filling out forms,
and review by several levels of management lead to confusion. The system must be easy to understand if it is to be
used effectively.
Lay down performance standards within the control of the team.
Make the reward system fair and effective.
Ensure participation in the reward system.
Involve people in the reward process and empower them to do the needful.
Most organisations use different types of rewards. Examples of recognition and rewards include money,
plaques, trophies, certificates or citations, public recognition, official perquisites, special assignments,
parties or celebrations or other meaningful considerations. The most common are wages or salary,
incentive systems, benefits and perquisites, and awards. For majority of people, the most important
reward for work is the pay they receive. For one thing, an effectively planned and administered pay
system can improve motivation and performance.
Money may not actually motivate people. Surprisingly, there is no clear evidence that increased earnings
will necessarily lead to higher performance. A great deal of research has been done on what determines
whether an individual will be satisfied with the rewards he or she receives from a situation. The following
five conclusions can be reached about what determines satisfaction with rewards:
1)
Satisfaction with reward is a function of both how much is received and how much the individual
feels should be received. When individuals receive less thanthey feel they should receive, they are
dissatisfied. When they receive more than they feel they should, they tend to feel guilty and
uncomfortable.
2)
Peoples feelings of satisfaction are influenced by comparisons with what happens to others. These
comparisons are made both inside and outside the organisations they work in, and are usually made with
similar people. Individuals tend to rate their inputs higher than others.
3)
In addition to obvious extrinsic rewards individuals receive (e.g., pay, promotion, status symbols),
they also may experience internal feelings that are rewarding to them. These include feelings of
competence, achievement, personal growth, and self-esteem. The overall job satisfaction of most people
is determined both by how they feel about their intrinsic rewards and how they feel about their extrinsic
rewards.
4)
People differ widely in the rewards they desire and how much important the different rewards are to
them. One group feels money is the most important, while another group feels interesting work and job
content is. Both groups, of course, are able to find examples to support their point of view.
5)
Many extrinsic rewards are important and satisfying only because they lead to other rewards, or
because of their symbolic value.
An effective reward system should link reward to performance. Workers who work hard and produce
more or give better quality results should receive greater rewards than poor performers. Also, criteria for
receiving rewards should be clear and employees should know whether they are going to receive
rewards for quality performance, innovation, effort or attendance. Management must ensure that workers
perceive distribution of rewards as equitable. Furthermore, for organisations to attract, motivate and
retain qualified and competent employees, they must offer rewards comparable to their competitors.
Competence-Related Pay
Competence-related pay may be defined as a method of rewarding people wholly or partly by reference to
the level of competence they demonstrate in carrying out their roles. This definition has two important
points: (1) pay is related to competence, and (2) people may be rewarded with reference to their level of
competence.
Competence-related pay is not about the acquisition of competence. It is about the effective use of
competence to generate added value. Competence-related pay works through the processes of
competence analysis of individual competences and levels of competence.
Skill-Based Pay
kill-based pay links pay to the level of skills used in the job and, sometimes, the acquisition and
application of additional skills by the person carrying out the job. The term is sometimes used
interchangeably with competence-related pay. But skill-based pay is usually concerned with the skills
used by manual workers, including fitters, fabricators, and operators. In competence-related pay
schemes, the behaviours and attributes an individual has to use to perform a role effectively are assessed
in addition to pure skills. Skill- based pay may in many ways seem to be a good idea, but its
potential costs as well as its benefits need to be evaluated rigorously before its introduction. Initially they
may provide strong motivation for individuals to increase their skills. But they may outlive their usefulness
and hence need to be revised or even replaced if they are no longer cost effective.
Team-Based Rewards
Team-based rewards are payments or other forms of non-financial rewards provided to members
of a formally established team which are linked
to the performance of that team. Team based rewards are shared amongst the members of teams
in accordance with a scheme or ad hoc basis for exceptional achievements. Rewards for
Profit Sharing
Profit sharing is better known, older and more widely practiced than gain sharing. Profit sharing is
associated with participative management theories. Profit sharing is a group-based organisation plan. The
fundamental objectives of profit sharing are: (a) to encourage employees to identify themselves more
closely with the company by developing a common concern for its progress; (b) to stimulate a greater
interest among employees in the affairs of the company as a whole; and (c) to encourage better
cooperation between management and employees.
Gain Sharing
Gain sharing is a formula based company or factory-wide bonus plan which provides for employers to
share in the financial gain made as a result of its improved performance. The fundamental aim of gain
sharing is to improve organizational performance by creating a motivated and committed workforce as
part of a successful company. The traditional forms of gain sharing are the Scanlon Plan and Rucker
Plan.
The success of a gain sharing plan depends on creating a feeling of ownership that first applies to the
plan and then extends to the operation. When implementing gain sharing a company must enlist the
involvement of all employees so that it can increase their identity with, and their commitment to, the plan,
and build a large core of enthusiastic supporters. There are three main principles on which gain sharing is
based ownership, involvement, and commitment.
The potential benefits of gain sharing are that if focuses the attention of all employees on the key issues
affecting performance and enlists the support of all employees towards this. It also encourages teamwork
and cooperation at all levels.
Gain sharing differs from profit sharing in at least three ways. First, under gain sharing, rewards are
based on a productivity measure rather than profits. The goal is to link pay to performance outcomes that
employees can control. Second, gain sharing plans usually distribute any bonus payments with greater
frequency (e.g., monthly or quarterly versus annually). Third, gain sharing plans distribute payment during
the current payment rather than deferring them as profit sharing plans often do.
Lawler (1971, 1990) has summarised some of the common results that have been found in research
studies of gain sharing plans:
Coordination, teamwork, and sharing of knowledge are enhanced at lower levels.
Social needs are recognised via participation and reinforcing group behaviour.
Attention is focussed on cost savings, not just quantity of production.
Acceptance of change due to technology, market and new method is greater
because higher efficiency leads to bonuses.
Attitudinal change occurs among workers, and they demand more efficient management, better planning, and good
performance from their co-workers.
Employees try to reduce overtime to work smarter.
Employees produce ideas as well as effort.
When unions are present, more flexible administration of union-management relations occur.
When unions support the plan, they are strengthened because better work situations and higher pay result.
Unorganised locations tend to remain non-union.
There are, however, certain limitations of gain sharing plans. Perhaps the most important is differentially
attracting and retaining the best performers. As gain sharing plans do not pay more for better
performance, they do not necessarily motivate them to stay. Unlike profit sharing it pays bonus even
when the organisation is not earning profits. Moreover, gain sharing plans do not fit in with every
situation.
The logic behind profit sharing seems to be twofold. First, it is seen as a way to encourage employees to
think more like owners or at least be concerned with the success of the organisation as a whole.
Individual oriented plans often place little emphasis on these broader goals. Second, it permits labour
Stock Options
The stock option is the most popular long-term incentive. A stock option is the right to purchase a specific
number of shares of company stock at a specific price during a period of time. The price at which the
employee can buy the stock is equal to the market price at the time the stock option was granted. The
employees gain is equal to the market value of the stock at the time it is exercised, less the grant price.
The assumption is that the price of the stock will go up, rather than go down or stay the same. Several
trends have increased the attractiveness of stock options as a long-term executive incentive and retention
tool.
Stock options are similar in many ways to profit sharing plans. The basis for payouts is organisational
performance in the stock market. Important goals of the plan are:
a.
to motivate employees to act in the best interest of the organisation as a whole;
b.
to enhance employee identification with the organisation; and
c.
to have labour
costs vary with the organisational performance. Stock options have long been a common programme for
executives, but some organizations, like Pepsi-Cola and Hewlett-Packard, grant them to all employees.
There is evidence that this approach is becoming more widespread.
Merit Pay
Merit pay is the most widely used approach for paying performance. Merit pay systems typically give
salary increases to individuals based on their supervisors appraisal of their performance. The purpose of
merit pay is to improve motivation and to retain the best performers by establishing a clear performance
reward relationship. Considerable evidence suggests that most organisations performance appraisal is
not done well and as a result, good measures of individual performance do not exist.
Employee Ownership
A number of plans exist that help get some or all of the ownership of a company into the hands of
employees. These include stock option plans, stock purchase plans, and Employee Stock Ownership
Plans (ESOPs). In small organisations in which participative management is practiced it has a good
chance of increasing organisational performance. In a large organisation with little employee ownership, it
may positively affect the structure by creating integration across the total organization if, of course, all
employees are included in the ownership plan. Ownership can have a more positive impact on attraction
and retention than does profit sharing. The usefulness of employee ownership, however, is likely to be
highly situational. For instance, in the case of small organisations they might make profit sharing and gain
sharing unnecessary, and if combined with an appropriate approach to employee involvement, they can
contribute substantially to employee motivation. In a large organisation they may contribute to the
integration of the organisation and to a positive culture.
Employee Benefits
Employee benefits are elements of remuneration given in addition to the various forms of cash pay.
They provide a quantifiable value for individual employees, which may be deferred or contingent like a
pension scheme, insurance cover or sick pay, or may provide an immediate benefit like a company car. It
also includes elements that are not strictly remuneration, such as annual holidays. Benefits in general do
not exist in isolation. They are a part of comprehensive compensation package offered by the
organisation.
The objectives of employee benefits are: (a) to increase the commitment of employees to the
organisation; (b) to demonstrate that the company cares for the needs of its employees; (c) to meet the
personal security and personal needs of the employees; and (d) to ensure that benefits are cost-effective
in terms of commitment, and improvement in recruitment and retention rates.
Benefits represent a large share of total compensation and, therefore, have a great potential to influence
the employee, unit, and organisational outcome variables. The empirical literature indicates that benefits
do indeed have effects on employee attitudes, retention, and perhaps job choice. Further, it appears that
individual preferences may play a particularly important role in determining employee reactions to
benefits. Consequently, many organisations have implemented benefit plans that permit some degree of
employees choice in the hope that a better match between preferences and benefits will be obtained,
perhaps at a lower total cost to the employer.
Statutory and Voluntary Benefits
Employee benefits may be classified as statutory and voluntary. Statutory benefits are to be given to the
employees by the organisation regardless of whether it wants to or not. For instance, social security
benefits under the Workmens Compensation Act, Employees State Insurance Act, Employees Provident
Fund and Miscellaneous Provisions Act, Maternity Benefit Act, and Payment of Gratuity Act are statutory
benefits. The Industrial Disputes Act, 1947 also provides for compensation in cases of
lay-off, retrenchment and closure of industrial establishments.
The menu of voluntary benefits offered to employees by employers is quite astounding, and carry
significant cost to the employer. The major voluntary benefits are: vacations, holidays, special leave, sick
leave, health insurance, educational assistance, employee discounts, medical benefits, recreational
facilities, subsidized meals in canteens, credit cards, and mobile telephones.
Flexible Benefits
There are significant individual differences in benefit preferences. Such individual differences, of course,
lend greater weight to the need for offering employees a choice in the design of their benefits package.
Flexible benefits plan will help control costs and enhance employee satisfaction.
When an employer considers offering benefits to employees, one of the main considerations is to keep
costs down. Traditionally, employers attempted to do that by providing a slate of benefits to their
employees irrespective of their need or use. Companies learn, in due course, that these benefits offered
did little to motivate their employees, or to provide an incentive to be more productive. Employees viewed
benefits as given. This fact coupled with the rising costs of benefits and a desire to
allow employees to choose what they want led employers to search for flexible benefits.
The term flexible benefits refers to a system whereby employees are presented with a set of benefits and
are asked to select, within monetary limits imposed, the benefits they desire. The aim of flexible benefits
programmes is to confer specific advantages to both the employee and the employer. The employees
have the freedom to choose benefits that are tailored to their specific needs. In some cases, it motivates
employees and leads to increased morale. It helps the employer to decide the nature and quantum of
benefits, and manage the costs more effectively. Also it helps in attracting and retaining quality employees
in an organisation. However, the main disadvantage of flexible benefits is: (a) wrong selection of benefits
in some cases; (b) keeping track with changing benefit needs of employees; and (c) the administrative
complexities involved in actual operation.
Trends in Employee Benefits
Less attention to tax avoidance
Greater simplification of benefit package
More attention to individual needs
Great emphasis on individual choice
A move towards cash rather than benefits in kind
Greater concentration on assessing the cost/effectiveness of total benefit package
More attention to communicating the benefits package
Career anchors denote the basic drives that create the urge to take up a certain
type of a career. These drives are as follows:
Managerial Competence: Person having this drive seek managerial positions that
provide opportunities for higher responsibility, decision making, control and
influence over others.
Technical Competence: People having this anchor seek to make career choices
based on the technical or functional content of the work. It provide continuous
learning and updating one's expertise in a technical or specialised area such as
quality control, engineering, accounting, advertising, public relations etc.
Security: If one's career anchor is security than he is willing to do what is required
to maintain job security (through compliance with organisational prescriptions), a
decent income and a stable future.
Creativity: This drive provides^ entrepreneurial and innovative opportunities to
the people. People are driven by an overwhelming desire to do something new that
is totally of their own making.
Autonomy: These people seek a career that provides freedom of action and
independence.
Career is viewed as a sequence of position occupied by a person during the course
of his lifetime. Career may also be viewed as amalgam of changes in value, attitude
and motivation that occur, as a person grows older. The implicit assumption is that
an invididual can make a different in his destiny over time and can adjust in ways
that would help him to enhance and optimize the potential for his own career
development. Career planning is important because it would help the individual to
explore, choose and strive to derive satisfaction with ones career object.
Nature of Career Planning
The following are the salient features of career planning:
A Process: Career planning is a process of developing human resources rather
than an event.
Upward movement: It involve upward movement in the organisational hierarchy,
or special assignments, project work which require abilities to handle recurring
problems, human relations issued and so on.
Mutuality of Interest: The individual's interest is served as his needs and
aspirations are met to a great extent and the organisation's interest is served as
each of its human resources is provided an opportunity to develop and contribute to
the organisational goals and objectives to the optimum of its ability and confidence.
Dynamic: Career planning is dynamic in nature due to an ever changing
environment.
occupation. One of four types of career paths may be used: traditional, network,
lateral, and dual.
a. Traditional Career PathAn employee progresses vertically upward in the
organization from one specific job to the next.
b. Network Career PathA method of career pathing that contains both a vertical
sequence of jobs and a series of horizontal opportunities.
c. Lateral Skill PathTraditionally, a career path was viewed as moving upward to
higher levels of management in the organization. The availability of the previous
two options has diminished considerably in recent years. But this does not mean
that an individual has to remain in the same job for life. There are often lateral
moves within the firm that can be taken to allow an employee to become revitalized
and find new challenges.
d. Dual-Career Path A career-path method, that recognizes that technical
specialists can and should be allowed to continue to contribute their expertise to a
company without having to become managers.
e. Adding Value To Retain Present JobRegardless of the career path pursued,
todays workers need to develop a plan whereby they are viewed as continually
adding value to the organization. If employees cannot add value, the company does
not need them, and much of the evolving work environments cannot use them
either. Workers must anticipate what tools will be needed for success in the future
and obtain these skills. These workers must look across company lines to other
organizations to determine what skills are transferable, and then go and get them.
Essentially, todays workers must manage their own careers as never before.
f. DemotionDemotions have long been associated with failure, but limited
promotional opportunities in the future and the fast pace of technological change
may make them more legitimate career options.
Career Development
Career Management
Career Management Introduction
Career planning
Career Paths
Career Development
Career Planning and Development Methods
Challenges in Career Development
Meeting the Challenges of Effective Career Development
Career-Impacted Life Stages
A formal approach taken by an organization to help its people acquire the skills and
experiences needed to perform current and future jobs is termed as career
development. Companys policies especially policies regarding promotion,
counseling the employees, opportunities to excel in future help employees to
develop
more about a certain subject or field will propel you faster in your career. Find your
niche!
Growth means, to an employee, one or more of the following:
Climbing up the ladder in the organizational hierarchy.
On-going increase in remuneration.
Acquiring higher level skills & competencies.
Occupying higher level Job positions.
Having an opportunity to avail of some exclusive benefits (perks & privileges).
Career development is not a mere management responsibility. It is a composite
organizational process which involves people, addresses their ambitions, assigns
them roles & responsibilities commensurate with their potential, evaluates their
performance, and creates Job positions to accommodate growth ambitions of
employees. In the career development cycle, a number of actions have to take
place at different levels as outlined below:
Employees
Decide what they want from their careers now and in the future.
Examine individually, or along with their Supervisors, their interests & ambitions.
Create 'Development Plans' by obtaining inputs from the Supervisor, to meet the
requirements of the current Job and to cater for the long term perspectives.
Work with the Supervisor to identify on the job learning and training opportunities
and other avenues for professional development.
Managers/ Supervisors
Identify the job-related knowledge, skills, competencies and experience needed for
an employee to be effective in that position.
Help subordinates to define their short and long term development needs which
support organizational objectives and employee's career goals.
Support Employee Development Plans by indicating specific steps that need to be
initiated to accomplish the learning goals.
Help the employee in understanding the type of Jobs which will be best suited for
his/ her career growth.
Organization/ Management
Provide a job and compensation structure that support the organization's as well as
individual's growth & development perspectives.
Enrich job-positions to create more challenges in the work-environment.
Provide time and funds for employee development activities.
Create processes to utilize the knowledge, skills and abilities of each employee,
aligned fully to the organizational goals.
Undertake pro-active man-power planning to meet future staffing needs.
Evaluate employees & create succession pipe-lines for vital job positions in the
organization.
Identify & nurture talent and reward performance in a transparent manner.
Systems Approach
Career development requires a systems approach.
1. This implies Institutionalization of processes to automatically capture essential
data about each employee at the time
of recruitment or induction.
It also includes maintenance, over the service span history of
employment, of the following details:
a) training details,
b) performance statistics,
c) awards & recognitions,
company. Employees define and match their specific career objectives with the
needs of the company. At other times, workshops are available in the community
that the company may send the worker to or workers may initiate the visit
themselves.
e. Personal Development Plans (PDP)Many employers encourage employees
to write their own personal development plans. This is a summary of a persons
personal development needs and an action plan to achieve them. Workers are
encouraged to analyze their strengths and weaknesses.
f. Software PackagesSome software packages assist employees in navigating
their careers.
g. Career Planning Web SitesThere are numerous Web sites available that
provide career planning and career counseling as well as career testing and
assessment.
Challenges in Career Development
Career Management
Career Management Introduction
Career planning
Career Paths
Career Development
Career Planning and Development Methods
Challenges in Career Development
Meeting the Challenges of Effective Career Development
Career-Impacted Life Stages
While most business people today agree that their organizations should invest in
career development, it is not always clear exactly what form this investment should
take. Before putting a career development program in place, management needs to
consider three major challenges.
a. Who will be Responsible?
Many modern organizations have concluded that employees must take an active
role in planning and implementing their own personal development plans. Situations
have led companies to encourage their employees to take responsibility for their
own development; these may include mergers, acquisitions, downsizing, and
employee empowerment. However, employees need at least general guidance
regarding the steps they can take to develop their careers, both within and outside
the company.
b. How Much Emphasis is Appropriate?
Too much emphasis on career enhancement can harm an organization's
effectiveness. Employees with extreme career orientation can become more
concerned about their image than their performance. Some warning signs a
manager should be on the lookout for include a heavy focus on advancement
opportunities, managing impressions, and socializing versus job performance.
future job opportunities and is meant to foster this growth and self-improvement.
The methods are
1. Mentoring & Coaching : It has become increasingly clear over the years that
employees who aspire to higher management levels in the organization often need
the assistance and advocacy of someone higher up in the organization. When senior
employee takes an active role in guiding another individual, we refer to this activity
as mentoring and coaching. This can occur at any level and can be most effective
when the two individuals do not have any type of reporting relationship.
2. Job Rotation: Involves moving employees from one job to another for the purpose
of providing them with broader experience.
3. Tuition Assistance Programs: To help individuals plan their careers, organizations
try to provide additional information in order to have better choice of the career.
Self-Development When an employer does not routinely offer development
programs, it is essential that employees work out their own development plan.
Planning for your career should include a consideration of how you can
demonstrate that you make a difference to the organization.
Development Suggestions Development suggestions focus on personal growth
and direction. These suggestions include statements such as "Create your own
personal mission statement."
Advancement Suggestion Advancement suggestions focus on the steps that
employees can take to improve their chances of being considered for advancement.
These suggestions include statements such as "Remember that performance in your
function is important, but interpersonal performance is critical."
Career-Impacted Life Stages
Career Management
Career Management Introduction
Career planning
Career Paths
Career Development
Career Planning and Development Methods
Challenges in Career Development
Meeting the Challenges of Effective Career Development
Career-Impacted Life Stages
Each persons career goes through stages that influence an individuals knowledge
of, and preference for, various occupations. People change constantly and, thus,
view their careers differently at various stages of their lives. Some of these changes
result from the aging process and others from opportunities for growth and status.
The main stages of the career cycle include the growth, exploration, establishment,
maintenance, and decline.
a. Growth Stage: The growth stage is roughly from birth to age 14 and is a period
during which an individual develops a self-concept by identifying and interacting
with other people. Basically, during this stage an individual establishes his or her
identity.
b. Exploration Stage: The exploration stage is the period roughly from ages 15 to
24, during which an individual seriously explores various occupational alternatives.
The person attempts to match these occupational alternatives with his or her own
interests and abilities resulting from education, leisure activities, and work.
c. Establishment Stage: The establishment stage is roughly from ages 25 to 44
and is the primary part of most peoples work lives. Hopefully, during this period, a
suitable occupation is found and the person engages in those activities that help
earn a permanent career. During this period, the individual is continually testing
personal capabilities and ambitions against those of the initial occupational choice.
d. Maintenance Stage: Between the ages of 45 to 65, many people move from
the stabilization sub stage into the maintenance stage. During maintenance, the
individual has usually created a place in the work world, and most efforts are
directed at maintaining the career gains earned.
e. Decline Stage: As retirement becomes an inevitable reality, in the decline
stage, there is frequently a period of adjustment, where many begin to accept
reduced levels of power and responsibility.
Career Management Introduction
CAREER MANAGEMENT
Career Management
Career Management Introduction
Career planning
Career Paths
Career Development
Career Planning and Development Methods
Challenges in Career Development
Meeting the Challenges of Effective Career Development
Career-Impacted Life Stages
Career: Career can be defined as a general course of action a person chooses to
pursue throughout his or her working life
We may define career as the "occupational positions a person has had over many
years." Many people look back on their careers, knowing that what they might have
achieved they did achieve, and that their career goals were satisfied. Others are
less fortunate and feel that, at least in their careers, their lives and their potential
went unfulfilled.
Employers have a big effect on employees careers. Some institute formal career
management processes, while others do little. We can define career management
as a process for enabling employees to better understand and develop their career
skills and interests and to use these skills and interests most effectively both within
the company and after they leave the firm. Specific career management activities
might include providing realistic career-oriented appraisals, posting open jobs, and
offering formal career development activities. Career development is the lifelong
series of activities (such as workshops) that contribute to a person's career
exploration, establishment, success, and fulfillment. Career planning is the
deliberate process through which someone becomes aware of his or her personal
skills, interests, knowledge, motivations, and other characteristics; acquires information about opportunities and choices; identifies career-related goals; and
establishes action plans to attain specific goals.
Career Management is the combination of structured planning and the
active management choice of one's own professional career.
planning
Management
Management Introduction
planning
Paths
Career Development
Career Planning and Development Methods
Challenges in Career Development
Meeting the Challenges of Effective Career Development
Career-Impacted Life Stages
Are you not satisfied with the way your career is moving? Don't know in which way you should
direct your career? Long past are the days of lifetime employment and now you need to plan
careers as how to shift from one organization to another for gaining maximum industry
experience. The task of career planning is quite a laborious one and it requires systematic
planning of every step and a calculated execution. Take the onus of planning your own career.
The Concept of Career
The tern 'career denotes all the jobs that are held during one's working life. It is viewed as a
sequence of positions held by an individual during the course of his lifetime. Edwin B. Flippo
defined a career as a sequence of separate but related work activities that provide continuity,
order and meaning in a person's life. This is the objective career. A career may be viewed as
amalgam of the changes in values, attitudes and motivation that occurs as a person grows
older. This is a subjective element in the concept of a career.
Definitions of Career Planning
"Career planning is a process of systematically matching career goals and individual
capabilities with opportunities for their fulfilment."(Schermerhorn: 2002)
"Career Planning is a deliberate process of becoming aware of self, opportunities,
constraints, choices, and consequences; identifying career-related goals; and
"career pathing" or programming work, education, and related developmental
experiences to provide the direction, timing, and sequence of steps to attain a
specific career goal." {McMahon and Merman: 1987)
Career Anchors
Career anchors denote the basic drives that create the urge to take up a certain
type of a career. These drives are as follows:
Managerial Competence: Person having this drive seek managerial positions that
provide opportunities for higher responsibility, decision making, control and
influence over others.
Technical Competence: People having this anchor seek to make career choices
based on the technical or functional content of the work. It provide continuous
learning and updating one's expertise in a technical or specialised area such as
quality control, engineering, accounting, advertising, public relations etc.
Security: If one's career anchor is security than he is willing to do what is required
to maintain job security (through compliance with organisational prescriptions), a
decent income and a stable future.
Creativity: This drive provides^ entrepreneurial and innovative opportunities to
the people. People are driven by an overwhelming desire to do something new that
is totally of their own making.
Autonomy: These people seek a career that provides freedom of action and
independence.
Career is viewed as a sequence of position occupied by a person during the course
of his lifetime. Career may also be viewed as amalgam of changes in value, attitude
and motivation that occur, as a person grows older. The implicit assumption is that
an invididual can make a different in his destiny over time and can adjust in ways
that would help him to enhance and optimize the potential for his own career
development. Career planning is important because it would help the individual to
explore, choose and strive to derive satisfaction with ones career object.
Nature of Career Planning
The following are the salient features of career planning:
A Process: Career planning is a process of developing human resources rather
than an event.
Upward movement: It involve upward movement in the organisational hierarchy,
or special assignments, project work which require abilities to handle recurring
problems, human relations issued and so on.
Mutuality of Interest: The individual's interest is served as his needs and
aspirations are met to a great extent and the organisation's interest is served as
each of its human resources is provided an opportunity to develop and contribute to
the organisational goals and objectives to the optimum of its ability and confidence.
Dynamic: Career planning is dynamic in nature due to an ever changing
environment.
Objectives of Career Planning
Career Planning seeks to meet the following objectives:
To provide and maintain appropriate manpower resources in the organisation by
offering careers, not jobs.
To provide environment for the effectiveness, efficiency and growth of its employees
and motivating them to contribute effectively towards achieving the objectives of
the organisation.
To map out careers of various categories of employees suitable to their ability, and
their willingness to be 'trained and developed for higher positions.
To have a stable workforce by reducing absenteeism and employee turnover.
To cater to the immediate and future human resourcesss need of the organisation
on a timely basis.
To increase the utilisation of managerial reserves within organisation.
Steps in Career Planning Process
Step 1: Self-Assessment The first and foremost step in career planning is to know
and assess yourself. You need to collect information about yourself while deciding
about a particular career option. You must analyse your interests, abilities,
aptitudes, desired lifestyle, and personal traits and then study the relationship
between the career opted for and self.
Step 2: Goal Setting Set your goals according to your academic qualification, work
experience, priorities and expectations in life. Once your goal is identified, then you
determine the feasible ways and objectives how to realize it.
Step 3: Academic/Career Options Narrow your general occupational direction to a
particular one by an informatory decision making process. Analyse the career option
by keeping in mind your present educational qualification and what more academic
degrees you need to acquire for it.
Step 4: Plan of Action Recognize those industries and particular companies where
you want to get into. Make the plan a detailed one so that you can determine for
how many years you are going to work in a company in order to achieve maximum
success, and then switch to another. Decide where you would like to see yourself
after five years and in which position.
Step 5: Catch Hold of Opportunities Opportunity comes but once. So, whenever you
get any opportunity to prove yourself and get into your desired career, try to
convert it in every way for suiting your purpose. Remember, a successful
professional is also quite opportunistic in his moves, examining every opening to
turn to his favour.
Advice on Career Planning
Try not to waste much time and wait too long between career planning sessions.
Don't ever judge and analyse yourself, like your likes and dislikes, abilities, etc. by
listening to what people around you say. Be your best judge.
Be open to constructive criticisms.
Career planning is a very important step that needs to be considered in totality. If
need be, you should not be hesitant to take the help of professional guidance and
find out the best career planning for yourself.
Different phases in the career of an employee:
Most working people go through career stages and it has been found that individuals needs
and expectations change as the individual moves through these stages.
Exploration Stage: This is the stage where an individual builds expectations about his career.
Some of them are realistic and some are not. But the fact is that these could be a result of the
individual's ambitions.
Establishment Stage: This could be at the stage where the individual gets his first job, gets
accepted by his peers, learns in this job, and also gains the first tangible evidence of success or
failure.
Mid-Career Stage: The individual's performance levels either continue to improve, or levels, or
even deteriorates.
Late Career: This is regarded as a pleasant phase, where one is allowed to relax and play the
role of an elderly statesman in the organization.
Decline: The stage, where the individual is heading towards retirement.
Career planning seeks to achieve the following objectives:
It attracts and retains the right persons in the organisation
It maps out careers of employees suitable to their ability, and their willingness to be trained and
developed for higher positions
It ensures better use of human resources through more satisfied and productive employees
It ensures more stable workforce by reducing labour turnover and absenteeism
It utilizes the managerial talent available at all levels within the organisation
It improves employee morale and motivation by matching skills to job requirements and by
providing job opportunities for promotion
It ensures that promising persons get experience that will equip them to reach responsibility for
which they are capable
It provides guidance and encouragement to employees to fulfill their potential
It helps in achieving higher productivity and organizational development
Advantages of career planning:
Helps create and develop an internal pool of promotable employees.
Reduces the turnover because the organizations interest in and concern for employees results
in higher employee loyalty.
Taps employee potential by providing them with specific career goals.
Motivates employees to grow and develop.
Satisfies employees needs for recognition and accomplishment.
Career Paths
Career Management
Career Management Introduction
Career planning
Career Paths
Career Development
Career Planning and Development Methods
Challenges in Career Development
Meeting the Challenges of Effective Career Development
Career-Impacted Life Stages
Career paths have historically focused on upward mobility within a particular
occupation. One of four types of career paths may be used: traditional, network,
lateral, and dual.
a. Traditional Career PathAn employee progresses vertically upward in the
organization from one specific job to the next.
b. Network Career PathA method of career pathing that contains both a vertical
sequence of jobs and a series of horizontal opportunities.
c. Lateral Skill PathTraditionally, a career path was viewed as moving upward to
higher levels of management in the organization. The availability of the previous
two options has diminished considerably in recent years. But this does not mean
that an individual has to remain in the same job for life. There are often lateral
moves within the firm that can be taken to allow an employee to become revitalized
and find new challenges.
d. Dual-Career Path A career-path method, that recognizes that technical
specialists can and should be allowed to continue to contribute their expertise to a
company without having to become managers.
e. Adding Value To Retain Present JobRegardless of the career path pursued,
todays workers need to develop a plan whereby they are viewed as continually
adding value to the organization. If employees cannot add value, the company does
not need them, and much of the evolving work environments cannot use them
either. Workers must anticipate what tools will be needed for success in the future
and obtain these skills. These workers must look across company lines to other
organizations to determine what skills are transferable, and then go and get them.
Essentially, todays workers must manage their own careers as never before.
f. DemotionDemotions have long been associated with failure, but limited
promotional opportunities in the future and the fast pace of technological change
may make them more legitimate career options.
Career Development
Career Management
Career Management Introduction
Career planning
Career Paths
Career Development
Career Planning and Development Methods
Challenges in Career Development
Meeting the Challenges of Effective Career Development
Career-Impacted Life Stages
A formal approach taken by an organization to help its people acquire the skills and
experiences needed to perform current and future jobs is termed as career
development. Companys policies especially policies regarding promotion,
counseling the employees, opportunities to excel in future help employees to
develop
their career. Career development consists of skills, education and experiences as
well as behavioral modification and refinement techniques that allow individuals to
work better and add value.
Career development is an ongoing organized and formalized effort that recognizes
people as a vital organizational resource. It differs from training in that it has a
wider focus, longer time frame, and broader scope. The goal of training is
improvement in performance; the goal of development is enrichment and more
capable workers.
Recently, career development has come to be seen as a means for meeting both
organizational and employee needs, as opposed to solely meeting the needs of the
organization as it had done in the past. Now, organizations see career development
as a way of preventing job burnout, providing career information to employees,
improving the quality of work lives and meeting affirmative action goals. That is,
career development must be seen as a key business strategy if an organization
wants to survive in an increasingly competitive and global business environment.
In simple terms it means 'Providing employees an opportunity to grow', especially to
those employees who deliver performance.
Definitions
Followings are the main definitions of career planning:
1. According to Schuler, "It is an activity to identify the individual needs, abilities
and goals and the organizations job demands and job rewards and then through
Career Paths
Career Development
Career Planning and Development Methods
Challenges in Career Development
Meeting the Challenges of Effective Career Development
Career-Impacted Life Stages
Creative decision making is a must in designing and implementing an effective
development program. The three phases of development often blend together in a
real_life program. These three phases include the assessment phase, the direction
phase, and the development phase.
a. The Assessment Phase
The assessment phase involves activities ranging from self-assessment to
organizationally provided assessment. The goal of both of these types of
assessment is to identify employees' strengths and weaknesses.
b. The Direction Phase
This involves determining the type of career that employees want and the steps
they must take to make their career goals a reality. It involves:
Individual career counselling
Information services
c. The Development Phase
The development phase is taking actions to create and increase skills to prepare for
future job opportunities and is meant to foster this growth and self-improvement.
The methods are
1. Mentoring & Coaching : It has become increasingly clear over the years that
employees who aspire to higher management levels in the organization often need
the assistance and advocacy of someone higher up in the organization. When senior
employee takes an active role in guiding another individual, we refer to this activity
as mentoring and coaching. This can occur at any level and can be most effective
when the two individuals do not have any type of reporting relationship.
2. Job Rotation: Involves moving employees from one job to another for the purpose
of providing them with broader experience.
3. Tuition Assistance Programs: To help individuals plan their careers, organizations
try to provide additional information in order to have better choice of the career.
Self-Development When an employer does not routinely offer development
programs, it is essential that employees work out their own development plan.
Planning for your career should include a consideration of how you can
demonstrate that you make a difference to the organization.
Development Suggestions Development suggestions focus on personal growth
and direction. These suggestions include statements such as "Create your own
personal mission statement."
Advancement Suggestion Advancement suggestions focus on the steps that
employees can take to improve their chances of being considered for advancement.
Induction of Employee
This is the last activity in relation to a newly employed person before he is trained for his job.
Induction Meaning:
First step towards gaining an employees' commitment, it is aimed at introducing the job and organization to the
recruit and him or her to the organization. It involves orientation and training of the employee in the organizational
culture, and showing how he or she is interconnected to (and interdependent on) everyone else in the organization.
See also orientation.------Business Dictionary
The new employees first contact with his or her physical and human working environment is extremely important,
since it will condition his or her relationship with the company. The employee must feel supported and important.
The first person he or she will meet is the immediate supervisor, who should present the corporate profile in addition
to providing information on the organizations background, values, clientele, services offered, staff, and expected
behaviour. The immediate superior will also specify the newcomers role. The points listed below should be covered
during this meeting.
Purpose and Need
An employee has to work with fellow employees and his supervisor. For this he must know them, the way they work
and also the policies and practices of the organization so that he may integrate himself with the enterprise. Any
neglect in the area of induction and orientation may lead to high labour turnover, confusion, wasted time and
expenditure.
Induction Programme
A good induction programme should cover the following:
The company, its history and products, process of production and major operations involved in his job.
The significance of the job with all necessary information about it including job training and job hazards.
Structure of the organization and the functions of various departments.
Employees own department and job, and how he fits into the organization.
Personnel policy and sources of information.
Company policies, practices, objectives and regulations.
Terms and conditions of service, amenities and welfare facilities.
Rules and regulations governing hours of work and over-time, safety and accident prevention, holidays and
vacations, methods of reporting, tardiness and, absenteeism.
Grievances procedure and discipline handling.
Social benefits and recreation services.
Opportunities, promotions, transfer, suggestion schemes and job satisfaction.
An induction programme consists primarily of three steps:
General orientation by the staff: It gives necessary general information about the history and the operations of the
firm. The purpose is to help an employee to build up some pride and interest in the organization.
Specific orientation by the job supervisor: The employee is shown the department and his place of work; the
location of facilities and is told about the organizations specific practices and customs. The purpose is to enable the
employee to adjust with his work and environment.
Follow-up orientation by either the personnel department or the supervisor: This is conducted within one
week to six months of the initial induction and by a foreman or a specialist. The purpose is to find out whether the
employee is reasonably well satisfied with him. Through personal talks, guidance and counselling efforts are made
to remove the difficulties experienced by the newcomer.
Orientation of Employee
Carefully selecting employees doesn't guarantee they'll perform effectively. Potential is one
thing, performance is another. Even high-potential employees can't do their jobs if they don't
know what to do or how to do it. Therefore your next step is to ensure that your employees do
know what to do and how to do it. This is the purpose of orienting and training employees. We
will start with orientation.New employee orientation (also referred to as on-boarding) is the
process you have created to introduce your new employees to your staff and management as well
as the new workplace environment. Your goal is to familiarize your new employee with your
company and create a positive first impression. It is important to understand that employees will
generally leave if they feel unwelcome, not supported or properly informed about their
responsibilities. So your new employee orientation is especially important. Please note that
employee orientation is also designed for employees who are promoted within your company
and need a similar type of program.
employees introduction to his or her new position. During this phase, the employee will acquire
the knowledge, skills, abilities and values necessary to adapt to his or her new environment. The
mentor should accompany the employee during this step. The newcomer should integrate into the
team and learn what is expected of him or her. This process may be enriched by training that
directly relates to the tasks inherent to the job.
Purposes of Orientation Employers have to realize that orientation isn't just a nice gesture put
on by the organization. It serves as an important element of the recruitment and retention
process. Some key purposes are:
To Reduce Startup Costs Proper orientation can help the employee get "up to speed" much more
quickly, thereby reducing the costs associated with learning the job.
To Reduce Anxiety Any employee, when put into a new, strange situation, will experience
anxiety that can impede his or her ability to learn to do the job. Proper orientation helps to reduce
anxiety that results from entering into an unknown situation, and helps provide guidelines for
behavior and conduct, so the employee doesn't have to experience the stress of guessing.
To Reduce Employee Turnover Employee turnover increases as employees feel they are not
valued, or are put in positions where they can't possibly do their jobs. Orientation shows that the
organization values the employee, and helps provide the tools necessary for succeeding in the
job.
To Save Time For Supervisor & Co-Workers Simply put, the better the initial orientation, the less
likely supervisors and co-workers will have to spend time teaching the employee.
To Develop Realistic Job Expectations, Positive Attitudes and Job Satisfaction It is important
that employees learn as soon as possible what is expected of them, and what to expect from
others, in addition to learning about the values and attitudes of the organization. While people
can learn from experience, they will make many mistakes that are unnecessary and potentially
damaging.
Orientation of Employee
Carefully selecting employees doesn't guarantee they'll perform effectively. Potential is one
thing, performance is another. Even high-potential employees can't do their jobs if they don't
know what to do or how to do it. Therefore your next step is to ensure that your employees do
know what to do and how to do it. This is the purpose of orienting and training employees. We
will start with orientation.New employee orientation (also referred to as on-boarding) is the
process you have created to introduce your new employees to your staff and management as well
as the new workplace environment. Your goal is to familiarize your new employee with your
company and create a positive first impression. It is important to understand that employees will
generally leave if they feel unwelcome, not supported or properly informed about their
responsibilities. So your new employee orientation is especially important. Please note that
employee orientation is also designed for employees who are promoted within your company
and need a similar type of program.
employees introduction to his or her new position. During this phase, the employee will acquire
the knowledge, skills, abilities and values necessary to adapt to his or her new environment. The
mentor should accompany the employee during this step. The newcomer should integrate into the
team and learn what is expected of him or her. This process may be enriched by training that
directly relates to the tasks inherent to the job.
Purposes of Orientation Employers have to realize that orientation isn't just a nice gesture put
on by the organization. It serves as an important element of the recruitment and retention
process. Some key purposes are:
To Reduce Startup Costs Proper orientation can help the employee get "up to speed" much more
quickly, thereby reducing the costs associated with learning the job.
To Reduce Anxiety Any employee, when put into a new, strange situation, will experience
anxiety that can impede his or her ability to learn to do the job. Proper orientation helps to reduce
anxiety that results from entering into an unknown situation, and helps provide guidelines for
behavior and conduct, so the employee doesn't have to experience the stress of guessing.
To Reduce Employee Turnover Employee turnover increases as employees feel they are not
valued, or are put in positions where they can't possibly do their jobs. Orientation shows that the
organization values the employee, and helps provide the tools necessary for succeeding in the
job.
To Save Time For Supervisor & Co-Workers Simply put, the better the initial orientation, the less
likely supervisors and co-workers will have to spend time teaching the employee.
To Develop Realistic Job Expectations, Positive Attitudes and Job Satisfaction It is important
that employees learn as soon as possible what is expected of them, and what to expect from
others, in addition to learning about the values and attitudes of the organization. While people
can learn from experience, they will make many mistakes that are unnecessary and potentially
damaging.
In the field of human resource management, training and development is the field concerned with
organizational activity aimed at bettering the performance of individuals and groups in organizational
settings. It has been known by several names, including employee development, human resource
development, and learning and development.
Training and development encompasses three main activities: training, education, and development.
Garavan, Costine, and Heraty, of the Irish Institute of Training and Development, note that these ideas are
often considered to be synonymous. However, to practitioners, they encompass three separate, although
interrelated, activities:
Training
This activity is both focussed upon, and evaluated against, the job that an individual currently holds.
Education
This activity focusses upon the jobs that an individual may potentially hold in the future, and is evaluated
against those jobs.
Development
This activity focusses upon the activities that the organization employing the individual, or that the
individual is part of, may partake in the future, and is almost impossible to evaluate.
The "stakeholders" in training and development are categorized into several classes. The sponsors of
training and development are senior managers. The clients of training and development are business
planners. Line managers are responsible for coaching, resources, and performance. The participants are
those who actually undergo the processes. The facilitators are Human Resource Management staff. And
the providers are specialists in the field. Each of these groups has its own agenda and motivations, which
sometimes conflict with the agendas and motivations of the others.
Sensitivity Training
SENSITIVITY TRAINING involves such groupings as --T groups (T for training),
encounter groups, laboratory training groups, and human awareness groups are all names
usually associated with what is known as sensitivity training.
Sensitivity training is about making people understand about themselves and others
reasonably, which is done by developing in them social sensitivity and behavioral
flexibility.
Social sensitivity in one word is empathy. It is ability of an individual to sense what
others feel and think from their own point of view.
Behavioral flexibility is ability to behave suitably in light of understanding.
Procedure of Sensitivity Training
Sensitivity Training Program requires three steps:
1. Unfreezing the old values -It requires that the trainees become aware of the
inadequacy of the old values. This can be done when the trainee faces dilemma in
which his old values is not able to provide proper guidance. The first step consists of a
small procedure:
An unstructured group of 10-15 people is formed.
Unstructured group without any objective looks to the trainer for its guidance
But the trainer refuses to provide guidance and assume leadership
Soon, the trainees are motivated to resolve the uncertainty
Then, they try to form some hierarchy. Some try assume leadership role which may not
be liked by other trainees
Then, they started realizing that what they desire to do and realize the alternative ways
of dealing with the situation
2. Development of new values - With the trainer's support, trainees begin to examine
their interpersonal behavior and giving each other feedback. The reasoning of the
feedbacks are discussed which motivates trainees to experiment with range of new
behaviors and values. This process constitutes the second step in the change process
of the development of these values.
3. Refreezing the new ones - This step depends upon how much opportunity the
trainees get to practice their new behaviors and values at their work place.
Goals of Sensitivity Training
While the emphases, styles and specific goals of the multitude of sensitivity training programs
vary, there does seem to be some consensus as to general goals. These include:
1. Increased understanding, insight, and self awareness about one's own behavior and its impact
on others, including the ways in which others interpret one's behavior.
2. Increased understanding and sensitivity about the behavior of others, including better
interpretation of both verbal and nonverbal clues, which increases awareness and understanding
of what the other person is thinking and feeling.
3. Better understanding and awareness of group and intergroup processes, both those that
facilitate and those that inhibit group functioning.
4. Increased diagnostic skills in interpersonal and intergroup situations. For the authors, the
accomplishments of the first three objectives provide the basic tools for accomplishing the fourth
objective.
5. Increased ability to transform learning into action, so that real life interventions will be more
successful in increasing member effectiveness, satisfaction, output, or effectiveness.
6. Improvement in individuals' ability to analyze their own interpersonal behavior, as well as to
learn how to help themselves and others with whom they come in contact to achieve more
satisfying, rewarding, and effective interpersonal relationships.
Different sensitivity programs may emphasize one or more of these goals or may neglect some.
However, they are goals that are common to most T groups.
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Outcomes of sensitivity training
The outcomes they depict (self, role, and organization) are only possibilities, and cannot be
guaranteed for everyone attending a sensitivity training program. This is because some
participants do not learn or learn very little from a T group experience, others learn some things,
and others learn a considerable amount and variety of things and because programs vary so much
in terms of their nature and goals. Possible outcomes are as follows:
Self
Increased awareness of own feelings and reactions, and own impact on others.
Increased awareness of feelings and reactions of others, and their impact on self.
Increased awareness of dynamics of group action.
Changed attitudes toward self, others, and groups; i.e., more respect for, tolerance for, and faith
in self, others, and groups.
Increased interpersonal competence; i.e., skill in handling interpersonal and group relationships
toward more productive and satisfying relationships.
Role
Increased awareness of own organizational role, organizational dynamics, dynamics of larger
social systems, and dynamics of the change process in self, small groups, and organizations.
Changed attitudes toward own role, role of others, and organizational relationships, i,e., more
respect for and willingness to deal with others with whom one
is interdependent, greater willingness to achieve collaborative relationships with others based on
mutual trust.
Increased interpersonal competence in handling organizational role relationships with superiors,
peers, and subordinates.
Organization
Increased awareness of, changed attitudes toward, and increased interpersonal competence about
organizational problems of interdependent groups or units.
Organizational improvement through the training of relationships or groups rather than isolated
individuals.
Management Development
Management Development
Management Development
On the Job Methods [MD]
Off the Job Methods [MD]
Earlier training programmes in industrial organisations were mostly concentrated on
improved performance in a particular job. They were intended to emphasise on
learning whatever skill and knowledge necessary for the satisfactory performance of
the job. Training were for the most part job holders in rank and file-positions. With
the passage of time organisations are growing and the complexity in the work is
also increasing. Now. the role of the mangers is not as easy as it was earlier. The
term manager has been used to mean people at different levels of hierarchy. All
those persons who have authority over the others and are responsible for their
activities and for the operation of an enterprise are managers. They have not only
to deal with the staff but also with other outsiders etc.. and have a decided
influence on the organisation. Even the corporate chairman, departmental head,
personnel administrator, planner or coordinator is. in fact a manager, although
many of them do not supervise others but are on the board of management. So the
title of manager cannot be standardized. It is their actions which are significant.
as we cannot expect that alt excellent managers will be effective coaches. Thus, the
effectiveness of this technique relies on the ability of the concerned 'coach'.
According to a survey conducted by International Coach Federation (ICF), more than
4,000 companies are using coach for their executives. These coaches are experts
most of the time outside consultants.
A coach is the best training plan for the CEOs because
It is one-to-one interaction
It can be done at the convenience of CEO
It can be done on phone, meetings, through e-mails, chat
It provides an opportunity to receive feedback from an expert
It helps in identifying weaknesses and focus on the area that needs improvement
This method best suits for the people at the top because if we see on emotional
front, when a person reaches the top, he gets lonely and it becomes difficult to find
someone to talk to. It helps in finding out the executives specific developmental
needs. The needs can be identified through 360 degree performance reviews.
2.
JOB ROTATION
Job-Rotation: It refers to the transfer or movement of executive from one job to
another and from one plan to another on some planned basis for educational
learning purposes. Such rotation may continue for a period ranging from 6 months
to 24 months. Under this method, the trainees are rotated over various routine jobs
in a department, division or unit before they are due for promotion as managers.
The idea behind this is to give them the required diversified skills and a broader
outlook, which are very important at the upper management levels. It also increases
the inter-departmental cooperation and helps in reducing the monotony of the work.
This also helps in turning the specialist into generalists. Under this job rotation can
be either horizontally or vertically. Vertical rotation is nothing more than promoting
a worker into a new position. Horizontal job transfer can be made on a planned
basis or on a situational basis. The main advantage of job rotation is that it permits
a greater understanding of other activities within the company. People are prepared
more rapidly to accept greater responsibility, especially at upper levels. Further
ability and talent of each manager are best tested, so the enterprise can secure his
best utilization in the emergency period. But this is not free of drawbacks. Due to
this developmental costs increase. It upsets the routine system of the concern itself.
An extensive rotation programme can result in having a vast number of employees
shifted in a position where their job knowledge is very limited. And even though
there may be significant long-term benefits from the programme.
Benefits of Job Rotation
Some of the major benefits of job rotation are:
1. It provides the employees with opportunities to broaden the horizon of
knowledge, skills, and abilities by working in different departments, business units,
functions, and countries
2. Identification of Knowledge, skills, and attitudes (KSAs) required
3. It determines the areas where improvement is required
4. Assessment of the employees who have the potential and caliber for filling the
position
3.
MENTORING
Follow-up In this step, the trainer checks the trainees job frequently after the
training program is over to prevent bad work habits from developing.
Off the Job Methods [MD]
Management Development
Management Development
On the Job Methods [MD]
Off the Job Methods [MD]
2.
BUSINESS GAMES METHOD
Under this, scheme an atmosphere is created in which the participants play a
dynamic role. Usually management games consist of several teams which represent
competing groups. Each team consists of 2 to 6 persons. Each team has to make
discussion and to arrive at decisions concerning such as production; pricing,
research expenditure. The participants are assigned such roles as Managing
Director, General Manager etc. They make decisions affecting price level, production
volume and inventory levels etc. These business games are intended to teach
trainees how to take management decisions in an integrated manner. The results of
their decisions are then compared by a computer programme. The participants
learn by analyzing problems and by making trial and error method.
3.
EQUIPMENT SIMULATORS
Equipment simulators are the mechanical devices that necessitate trainees to use
some actions, plans, measures, trials, movements, or decision processes they would
use with equipment back on the their respective work place.
This is the technique of working up a real thing, in which a situation is created and
attempt is to made to make it resembled to the actual situation. So a duplicate
atmosphere but like original sense is created. Trainees are assigned different roles
in that situation and they
The literature on socio-technical approaches to organizational development
provides guidelines for the design or redesign of tools. Human Resource
professionals involved in propose of simulators and their pre-testing should engage
those who will be using the equipment and their supervisors. Their input can help in
reducing the potential resistance, errors in the equipment and more importantly, it
also increases the degree of reliability between the simulation and the work setting.
Equipment simulators can be used in giving training to:
1. Air Traffic Controllers
2. Taxi Drivers
3. Telephone Operators
4. Ship Navigators
5. Maintenance Workers
6. Product Development Engineers
7. Airline Pilots
8. Military Officers
4.
IN-BASKET TECHNIQUE
In this method, each team of trainees is given the different files of correspondence
of the business problems. These are also called business papers like memoranda,
reports and telephone messages and other general papers which come across the
table of the manager. The trainees are asked to study them, analyse them and
make their comments on the file.
Procedure of the In-basket Technique
In this technique, trainee is given some information about the role to be played such
as, description, responsibilities, general context about the role.
The trainee is then given the log of materials that make up the in-basket and asked
to respond to materials within a particular time period.
After all the trainees complete in-basket, a discussion with the trainer takes place.
In this discussion the trainee describes the justification for the decisions.
The trainer then provides feedback, reinforcing decisions made suitably or
encouraging the trainee to increase alternatives for those made unsuitably.
This technique focuses on:
a. Building decision making skills
b. Assess and develops Knowledge, Skills and Attitudes (KSAs)
c. Develops of communication and interpersonal skills
d. Develops procedural knowledge
e. Develops strategic knowledge
5.
Sensitivity training is about making people understand about themselves and others
reasonably, which is done by developing in them social sensitivity and behavioral
flexibility.
Social sensitivity in one word is empathy. It is ability of an individual to sense what
others feel and think from their own point of view.
Behavioral flexibility is ability to behave suitably in light of understanding.
Procedure of Sensitivity Training
There are many management development techniques that an employee can take
in off the job. The few popular methods are:
1.
CASE STUDIES
Case Studies try to simulate decision-making situation that trainees may find at
their work place. It reflects the situations and complex problems faced by
managers, staff, HR, CEO, etc. The objective of the case study method is to get
trainees to apply known concepts and ideologies and ascertain new ones. The case
study method emphasize on approach to see a particular problem rather than a
solution. Their solutions are not as important as the understanding of advantages
and disadvantages.
Procedure of the Case Study Method
The trainee is given with some written material, and the some complex situations of
a real or imaginary organization. A case study may range from 50 to 200 pages
depending upon the problem of the organization.
A series of questions usually appears at the end of the case study.
The longer case studies provide enough of the information to be examined while the
shorter ones require the trainee to explore and conduct research to gather
appropriate amount of information.
The trainee then makes certain judgment and opines about the case by identifying
and giving possible solutions to the problem.
In between trainees are given time to digest the information. If there is enough time
left, they are also allowed to collect relevant information that supports their
solution.
Once the individuals reach the solution of a problem, they meet in small groups to
discuss the options, solutions generated.
Then, the trainee meets with the trainer, who further discusses the case.
Case Study method focuses on:
a.
b.
c.
d.
e.
2.
BUSINESS GAMES METHOD
Under this, scheme an atmosphere is created in which the participants play a
dynamic role. Usually management games consist of several teams which represent
competing groups. Each team consists of 2 to 6 persons. Each team has to make
discussion and to arrive at decisions concerning such as production; pricing,
research expenditure. The participants are assigned such roles as Managing
Director, General Manager etc. They make decisions affecting price level, production
volume and inventory levels etc. These business games are intended to teach
trainees how to take management decisions in an integrated manner. The results of
their decisions are then compared by a computer programme. The participants
learn by analyzing problems and by making trial and error method.
3.
EQUIPMENT SIMULATORS
Equipment simulators are the mechanical devices that necessitate trainees to use
some actions, plans, measures, trials, movements, or decision processes they would
use with equipment back on the their respective work place.
This is the technique of working up a real thing, in which a situation is created and
attempt is to made to make it resembled to the actual situation. So a duplicate
atmosphere but like original sense is created. Trainees are assigned different roles
in that situation and they
The literature on socio-technical approaches to organizational development
provides guidelines for the design or redesign of tools. Human Resource
professionals involved in propose of simulators and their pre-testing should engage
those who will be using the equipment and their supervisors. Their input can help in
reducing the potential resistance, errors in the equipment and more importantly, it
also increases the degree of reliability between the simulation and the work setting.
Equipment simulators can be used in giving training to:
1. Air Traffic Controllers
2. Taxi Drivers
3. Telephone Operators
4. Ship Navigators
5. Maintenance Workers
with range of new behaviors and values. This process constitutes the second step in
the change process of the development of these values.
3. Refreezing the new ones This step depends upon how much opportunity the
trainees get to practice their new behaviors and values at their work place.
Executive Development
Executive development is the whole of activities aimed at developing the skills and
competencies of those that (will) have executive positions in organisations. While
"executive" and "manager" and "leader" are often used interchangeably, "executive" is
commonly used to signify the top 5% to 10% of the organization. Similarly,
"development" and "training" and"education" are often used as synonyms, however
"development" is generally seen as the more encompassing of the three in terms of
activities that build skills and competencies.
While it is typical to find organizations that have dedicated corporate training &
development people and processes, it is not always the case that an organization will
have a dedicated executive development set of activities. In some organizations
(typically large multi-nationals), there is a separate executive development team, in
other organizations executive development is handled as one of many activities by the
larger corporate training group, and in yet other scenarios there is no executive
development activity to speak of.
In contrast to other corporate training & development activities, which have as their core
purpose to build tactical skills for employees, executive development plays a different
role for the organization. Indeed some executive development is conducted for the
purpose of building tactical skills (sometimes referred to as "hard skills" such as
business fundamentals- finance, marketing, operations and also "soft skills" such as
communication and team building), yet executive development is also used to evaluate
future potential future executives as well as a mechanism for the CEO and the
executive team to cascade their strategies, goals, and even elements of the culture to
the rest of the management team and ultimately the organization. In the best of cases,
executive development not only helps an organization execute its key strategies, it can
also help provide input to the strategy creation process. In this way, executive
development is much more strategic than typical corporate training & development
which is used for most employees of an organization.
While executive development continues to become enriched by many approaches, one
approach, adult development and its subfield Positive Adult Development is beginning
to create opportunities for what has been essentially reserved for academic research to
become an increasing part of executive practices
Succession Planning
Career Planning
1. Career planning is the process or
activities offered by an organisation
to the individuals or its employees to
identify their strength, weaknesses,
specific goals and the jobs they
would like to occupy. Through
career planning, the employees,
individuals, identify and implement
steps to attain their career goals.
2. In career planning, an
organisation is concerned with
strategic questions of career
development.
3. Career Planning is a must for all
managerial cadres and posts.
Succession Planning
1. Succession planning is the
important process which involves
identification of individuals or
employees as the possible
successors to the key or very senior
positions in an organization which
such position become vacant. Thus,
in short, succession planning
focuses on the identification of
vacancies and locating probable
successor.
2. In succession planning, the focus
of attention is the persons who can
occupy the vacant post.
play.
Promotions of Employee
Merit as a basis: Merit implies the knowledge, skills and performance record of an
employee. The advantages are: motivates competent employees to work hard, helps to
maintain efficiency by recognizing talent and performance. It also suffers from certain
disadvantages like: difficulty in judging merit, merit indicates past achievement, may not
denote future potential and old employees feel insecure.
Seniority-cum-Merit as basis: As both seniority and merit as basis suffer from certain
limitations, therefore, a sound promotion policy should be based on a combination of
both seniority and merit. A proper balance between the two can be maintained by
different ways: minimum length of service may be prescribed, relative weightage may
be assigned to seniority and merit and employees with a minimum performance record
and qualifications are treated eligible for promotion, seniority is used to choose from the
eligible candidates.
DEMOTION
Demotion refers to the lowering down of the status, salary and responsibilites of an
employee. Demotion is used as a disciplinary measure in an organization. The habitual
patterns of behaviour such as violation of the rules and conduct, poor attendance
record, insubordination where the individuals are demoted. Beach (1975) defines
demotion as the assignment of an individual to a job of lower rank and pay usually
involving lower level of difficulty and responsibility.
Causes of Demotion
Demotion may be caused by any of these factors:
a)
Adverse business conditions: Employees may be demoted because of
recession faced by company.
b)
Incompetency of the employee: It happens when an employee finds it difficult to
meet the required standard.
c)
Technological changes: When employee is unable to adjust with any
technological change made by the company.
d)
Disciplinary measure.
Yoder, Heneman, Turnbull and Stone (1958) have suggested a fivefold policy with
regard to demotion practice.
A clear and reasonable list of rules should be framed, violations of which would subject
an employee to demotion;
This information should be clearly communicated to employees;
There should be a competent investigation of any alleged violation;
If violations are discovered, there should be a consistent and equitable application of
the penalty, preferably by the immediate supervisor;
There should be a provision for review. (In a unionised case, this will be automatic via
the grievance procedure; in a non-unionised case, the employer will need to make other
provisions for review).
Employee Transfers
A transfer is a horizontal or lateral movement of an employee from one job, section, department,
shift, plant or position to another at the same or another place where his salary, status and
responsibility are the same. Yoder and others (1958) define transfer as a lateral shift causing
movement of individuals from one position to another usually without involving marked change
in duties, responsibilities, skills needed or compensation. Transfer may be initiated either by the
company or the employee. It also can be temporary or permanent.
Transfers are generally affected to build up a more satisfactory work team and to achieve the
following purposes;
To increase the effectiveness of the organization
To increase versatility and competence of key positions
To deal with fluctuations in work requirements
To correct incompatibilities in employee relations
To correct erroneous placement
To relieve monotony
To adjust workforce
To punish employees
Types of Transfers
Employee transfers may be classified as below.
a) Production transfers: Such transfers are made to meet the company requirements. The
surplus employees in one department/section who are efficient might be absorbed in other place
where there is a requirement. Such transfers help to stabilise employment.
b) Replacement transfers: This takes place to replace a new employee who has been in the
organization for a long time and thereby giving some relief to an old employee from the heavy
pressure of work.
c) Versality transfers: It is also known as rotation. It is made to develop all round employees by
moving them from one job to another. It also helps to reduce boredom and monotony.
d) Personnel or remedial transfers: Such a transfer is made to rectify mistakes in selection and
placement. As a follow up, the wrongly placed employee is transferred to a more suitable job.
e) Shift transfers: This is pretty common where there is more than one shift and when there is
regularised rotation.
Transfer Policy
Every organization should have a fair and impartial transfer policy which should be known to
each employee. The responsibility for effecting transfers is usually entrusted to an executive with
power to prescribe the conditions under which requests for transfers are approved. Care should
be taken to ensure that frequent or large-scale transfers are avoided by laying down adequate
selection and placement procedures for the purpose. A good transfer policy should:
Specifically clarify the types of transfers and the conditions under which these will be made;
Locate the authority in some officer who may initiate and implement transfers;
Indicate whether transfers can be made only within a sub-unit or also between departments,
divisions/plants;
Indicate the basis for transfer, i.e., whether it will be based on seniority or on skill and
competence or any other factor;
Decide the rate of pay to be given to the transferee;
Intimate the fact of transfer to the person concerned well in advance;
Be in writing and duly communicated to all concerned;
Not be made frequently and not for the sake of transfer only.
Wages Definition
sec 2 (vi) "wages" means all remuneration (whether by way of salary allowances or
otherwise) expressed in terms of money or capable of being so expressed which would
if the terms of employment express or implied were fulfilled by payable to a person
employed in respect of his employment or of work done in such employment and
includes The main types of wages are: -------The Payment of Wages Act, 1936
Meaning and Definition of Wage
In the ordinary language the term wages implies 'reward' to the labourers for the
services rendered by them. It may be paid daily, weekly, fortnightly, monthly, per hour or
per unit. Services rendered by the labourer include both physical and mental services.
In the words of Benham. "Wages are a sum of money paid under contract by an
employer to a worker for services rendered."
According to ILO " Wages refer to that payment which is made by the employers to the
labourer for his services hired on the conditions of payment per hour, per day, per week
or per fortnight."
Appropriate Definition: Wages refer to that reward which is received from the employer
for the services rendered by the labourer per week, per month, per fortnight or per unit
It includes allowances also.
1.
Subsistence wage;
2.
Minimum wage;
3.
Fair Wage; and
4.
Living Wage
Subsistence Wage: - The wage that can meet only bare physical needs of a worker
and his family is called subsistence wage.
Minimum Wage: - Minimum wage is the wage that is able to provide not only for bare
physical needs but also for preservation of efficiency of worker plus some measure of
education, health and other things.
Fair Wage: - Fair wages is an adjustable step that moves up according to the capacity
of the industry to pay, and the prevailing rates of wages in the area of industry.
Living Wage:- Living wage is that which workers can maintain the health and decency,
a measure of comfort and some insurance against the more important misfortune of lie.
In any even the minimum wage must be paid irrespective of the extent of profits, the
financial condition of the establishment or the availability of workmen at lower wages.
The wages must be fair, i.e. sufficiently high to provide standard family with ,food,
shelter, clothing, medical care and education of children appropriate to the workmen. A
fair wage lies between the minimum wage and the living wage which is the goal. Wages
must be paid on an industry wise and region basis having due regard to the financial
capacity of the unit.
Annual Bonus
The bonus component of the industrial compensation system, though a quite old one, had assumed a statutory status
only with the enactment of the Payment of Bonus Act, 1965. The Act is applicable to factories and other
establishments employing 20 or more employees. The Act has statutorily imposed an obligation on the employer to
pay bonus to employees at the minimum rate of 8.33 per cent of the salary earned. The maximum is fixed at 20 per
cent. The Act has restricted payment of bonus to employees drawing wages or salaries up to rupees 3,500 per
mensem. In cases of those eligible employees whose salary is more than rupees 3,500 per month, it is computed at
rupees 2,500 per month. The quantum of bonus under the Act is dependent upon available surplus.
Incentive Systems
The term incentive has been used both in the restricted sense of participation and in the widest sense of financial
motivation. It is used to signify inducements offered to employees to put forth their best in order to maximise
production results. Incentives are classified as financial and non-financial. Important financial incentives are
attractive wages, bonus, dearness allowance, traveling allowance, housing allowance, gratuity, pension, and
provident fund contributions. Some of the nonfinancial incentives are designation, nature of the job, working
conditions, status, privileges, job security, opportunity for advancement and participation in decisionmaking.
However, a vast diversity exists in regard to policy and practice of incentive payments. Incentive systems also have
been classified into three groups: individual wage incentive plan, group incentive scheme, and organisation-wide
incentive system.
The individual wage incentive plan is the extra compensation paid to an individual over a
specified amount for his production effort. Individual incentive systems are based upon certain
norms established by work measurement techniques such as past performance, bargaining
between union and the management, time study, standard data, predetermined elemental times
and work sampling. There are four types of individual incentive systems such as measured daywork, piece-work standard, group plans and gains-sharing plans. Under the measured day-work
incentive wage system, an individual receives his regular hourly rate of pay, irrespective of his
performance. Piece-work system form the most simple and frequently used incentive wage. In
this, individuals earnings are direct and proportionate to their output. Group plans embody a
guaranteed base rate to the workers in which the performance over standard is rewarded by a
proportionate premium over base pay. Gains-sharing system involves a disproportionate increase
in monetary rewards for increasing output beyond a predetermined standard. As the gains are
shared with the entrepreneurs, the worker gets less than one per cent increment in wage for every
one percent increase in output.
The group or area incentive scheme provides for the payment of a bonus either equally or
proportionately to individuals within a group or area. The bonus is related to the output achieved
over an agreed standard or to the time saved on the job the difference between allowed time
and actual time. Such schemes may be most appropriate where: (a) people have to work together
and teamwork has to be encouraged; and (b) high levels of production depend a great deal on the
cooperation existing among a team of workers as compared with the individual efforts of team
members.
The organisation-wide incentive system involves cooperation among employees and the
management and purports to accomplish broader organisational objectives such as: (i) to reduce
labour, material and supply costs; (ii) to strengthen loyalty to the company; (iii) to promote
harmonious labour-management relations; and (iv) to decrease turnover and absenteeism.
One of the aspects of organisation-wide incentive system is profit sharing under which an employee receives a share
of the profit fixed in advance under an agreement freely entered into. The major objective of the profit sharing
system is to strengthen the unity of interest and the spirit of cooperation. Some of the advantages of such a scheme
are: (i) it inculcates in employees a sense of economic discipline as regards wage costs and productivity; (ii) it
engenders improved communication and increased sense of participation; (iii) it is relatively simple and its cost of
administration is low; and (iv) it is non-inflationary, if properly devised. One of the essentials of a sound profit
sharing system is that it should not be treated as a substitute for adequate wages but provide something extra to the
participants. Full support and cooperation of the union is to be obtained in implementing such a scheme.
Fringe Benefits
The remuneration that the employees receive for their contribution cannot be measured by the mere estimation of
wages and salaries paid to them. Certain supplementary benefits and services known as fringe benefits are also
available to them. The characteristics of fringe benefits are:
1) These benefits are distinctly additional to the regular wages paid to the workers. As such, they are not provided
as a substitute for wages or salaries of the employees.
2) These benefits are meant primarily to be of advantage to the employees.
3) The advantages accrued to the employees through the provision of fringe benefits are as such they cannot be
secured through their own individual efforts.
4) Only those benefits fall within the purview of fringe benefits which are or can be expressed in cash terms.
5) The scope of fringe benefits is different from that of welfare services. Fringe benefits are provided by the
employers alone whereas welfare services may be provided by other agencies as well. Benefits that have no relation
to employment should not be regarded as fringe benefits.
Fringe benefits have been classified in several ways. In terms of their objectives, Meggison classifies them into two
groups: those providing for employees security and those purporting to increase employees job satisfaction causing
reduction in labour turnover and improvement in productivity. The former group includes retirement programmes,
workmens compensation, unemployment compensation, social insurance, and other provisions. The later group
incorporates vacations, holidays, sick leave, discounts on company goods and services, and allied tangible and
intangible benefits.
Fringe benefits are also categorised as statutory, contractual, and voluntary. Statutory benefits include social security
and medical care, unemployment compensation, workmens compensation, provident fund, and gratuity. The
benefits provided by the employers in pursuance of agreements with workers may include dearness allowance,
house rent allowance, city compensatory allowance, medical allowance, night-shift allowance, heat allowance,
transport, housing and educational allowances. Voluntary fringe benefits which are provided unilaterally by the
company include group insurance, death benevolent fund, washing allowance, leave encashment, leave travel
concession, conveyance allowance, incentive for family planning, service awards, and suggestion awards.
Currently fringe benefits are a significant part of employee compensation system and the
employees tend to take them for granted and do not link these items with wages or income as
they do not have any direct bearing on payments. They are no more on the fringe of
compensation but form an integral component of individuals earnings involving spiraling costs
for the company. However, the fringe benefit system can become effective if attempts are made
to gear them to the needs of human resource in organisational settings.
Statutory Machinery
INTRODUCTION
Traditionally, labour laws had a protective function consisting of established standards both to protect
workers in their workplace and to provide them a basic minimum level of living conditions. Because of
changing industrial and economic scenario, along with statutory machineries, voluntary machineries
come into existence. Hence, regulatory mechanisms for prevention and settlement of industrial disputes
comprises of statutory and voluntary machinery. In this unit, we will be discussing on these machineries
and also concept of lok adalats.
STATUTORY MACHINERY
The Industrial disputes Act, 1947 provides the mechanics of dispute- resolution and set-up the necessary
structure so as to create congenial climate.
What is an Industrial Dispute?
An Industrial dispute means any dispute or difference between employers and employers, or between
employers and workmen, or between workmen and workmen, which is connected with the terms and
conditions of employment of any person.
Who can raise a Dispute?
A dispute is said to have arisen when some demand is made by workmen and it is rejected by the
management or vice versa and the demand is relating to the employment. A workman can raise a
dispute. However, it is pertinent to note that a dispute between an employer and single workman does not
fall within the definition of industrial dispute, but if the workmen as a body or a considerable section of
them make a common cause with the individual workman then such a dispute would be an industrial
dispute.
However, certain individual disputes relating to dismissal, discharge, retrenchment or termination of
services of a workman, are also covered. The Act implies even to industrial establishments employing a
single workman. But dispute in relation to a person who is not a workman within the meaning of the Act
is not an industrial dispute under Section 2(k).
The Industrial Disputes Act, 1947 provide for creation of different authorities to preserve industrial
harmony, prevention and settlement of industrial disputes. These are as follows:
1) Works Committee
In establishments where hundred or more workers are employed:
a) The appropriate government may require the employer to set-up works committee.
b) It is composed of equal number of representatives of workmen and management who are chosen with
consultation of the trade union.
c) Its functions are to preserve amity and establish cordial relations and to resolve differences of opinion
on matters of common interest.
2) Conciliation Officer
a) The conciliation officer may be appointed by the government for specified area or specified industries.
b) Duty of conciliation officer is to mediate in and promote the settlement of industrial disputes. Where
industrial dispute exists or is apprehended and relates to public utility, conciliation officer shall hold
conciliation proceedings and it is mandatory. In such cases conciliation officer will investigate the dispute
and induce the parties to corne to amicable settlement. However, he cannot take the decision, he has to
send report of settlement to his government. If no settlement is reached then also he has to report to the
government giving reasons on account of which settlement could not be reached. Conciliation officer to
normally submit report within 14 days of commencement of conciliation proceedings. Duty of the
conciliation officer is administrative and not judicial in nature.
If an agreement is reached by the parties, it is binding on both the parties.
3) Board of Conciliation
The government may notify constitution of board of conciliation for promoting settlement of an industrial
dispute. Its role is also consultative, like conciliation officer.
4) Court of Enquiry
The government may constitute a court of enquiry to enquire into any matter connected with an industrial
dispute. In the case of board of conciliation the object is to promote settlement of an industrial dispute.
But in the case of a court of enquiry object is to enquire into and reveal the causes of an industrial
dispute.
5) Voluntary Arbitration
It is voluntary method of resolving individual disputes if dispute is not settled by negotiating parties. Here
both parties are willing to go to an arbitrator of their choice and submit to his decision. Arbitrators are
named by the parties in the written agreement.
The number of arbitrators can be one or even more than one. Legal sanctity to this mode of settlement of
industrial disputes was given in1956 when Section lOA was introduced in Industrial Dispute Act.
6) Adjudication
The Industrial Disputes Act provides for three-tier system of adjudication of industrial disputes. The cases
either may be referred by government to court after the receipt of failure report from conciliation officer or
directly by any party. Labour courts and industrial tribunal may be constituted by the state government
while national tribunal is constituted by the central government.
i) Labour Courts: Functions of labour courts are relating to matters as under:
1) Legality of an order passed by an employer under the standing order,
2) Application and interpretation of standing orders,
3) Discharge or dismissal of workman,
4) Withdrawal of any customary concession or privilege,
5) Illegality or otherwise of a strike or lock-out, and
6) All matters (not specified for industrial court).
ii) Industrial Tribunals: The functions of industrial tribunals are as follows:
1) All matters within jurisdiction of labour courts,
2) Wages,
Voluntary Machinery
Voluntary machinery for settlement of industrial disputes is based on Code of Discipline
announced in 1958. The code was approved by all central organisations of workers and employers in
16th Indian Labour Conference at the initiative of the then Labour Minister, Shri G.L. Nanda.
1) Code of Discipline, 1958
The code reflects the policy of the government to build up an industrial democracy on voluntary basis
and is the sheetanchor of Mahatma Gandhis philosophy of industrial relations. It aims at preserving
industrial peace with the help of employers and employees. It represents a voluntary moral commitment
and is not a legal document. The code, which aims at providing an alternative to conflict for the resolution
of disputes, worked very well for some time after its adoption.
The issue of discipline e in industry was discussed in the Indian Labour Conference and the code of
discipline was framed and introduced by that tripartite body in 1958. Discipline in the relationship
between workers and employers can better be enforced if both the parties accept their responsibilites
and show a willingness to discharge them. In the absence of any statutory provision at the all-India level
for the recognition of trade union, the provision in this regard has been incorporated in the Code of
Discipline.
The main elements of the code are:
The two parties agree to utilise the existing machinery for the settlement of industrial disputes.
The parties shall not resort to strikes and lock-outs without first exploring all avenues of settlement
The parties accept that the disputes not settled mutually shall be referred to voluntary arbitration.
The code specifies the criteria for the recognition of trade union and creates an obligation on employers
to recognise the majority union in an establishment or industry.
The two parties shall not resort to the unfair labour practices detailed out in the code.
Managements and trade unions agree to establish grievance procedure on a mutually agreed basis.
Initially by the end of March, 1962, the code was accepted voluntarily by about 900 independent
employers and trade unions. The number increased to around 3000 by the end of 1967. Over the years,
however, the willingness and enthusiasm of the parties to observe the code has declined, and they have
developed an attitude of indifference to the code. It has proved to be difficult for them to abide by selfimposed discipline in terms of obligations backed only by moral sanctions. Industrial Truce Resolution,
1962. With the Chinese attack in October 1962, an emergency was declared in the country, and it was
realised that production should not be jeopardised in any way. Employers and workers representatives,
in a joint meeting of their organisations held on November 3, 1962 at New Delhi, passed a resolution,
saying that the emerging method of dispute resolution which is speedy, less costly and which ends in
win-win situation.
2) Code of Conduct
The other code adopted in May 1958 was the code of conduct. The representatives of the four central
trade union organisations - the INTUC, AITUC, HMS and UTUC agreed to observe certain principles
with a view to maintaining harmonious interunion relations. Inter-union and intra-union rivalries emerge
out of certain weakness of Indian trade unions such as fragmentation and multiplicity. The code was
formulated to curb these evils. But it has remained mainly on paper, for trade unions seem to have
forgotten that it exists.
3) Tripartite Bodies
The other tripartite bodies which came into existence were:
a. Indian Labour Conference,
b. Standing Labour Committee,
c. Industrial Committees, and
d. Tripartite Committee on International Labour Organisation Conventions, 1954.
4) Formation of Joint Consultative Machinery for Central Government Employees (JCM), this is also a
three-tier machinery.
5) Collective Bargaining was encouraged.
6) Workers Participation in Management Scheme was introduced through Formation of Shop
Councils and Plant Council.
MEDIATION AND LITIGATION
Mediation is very much a part of Indian culture. Litigation, on the other hand, was introduced by the
colonial masters as a top down model. It is alien to Indian culture and never got imbibed into the Indian
culture. Respectable and elderly people acting as mediators or functioning as Panchayat members is
integral to Indian culture. In the past it was these respectable and elderly people who used to help in
resolving disputes through mediation or mediation-cum-arbitration in Panchayats. Even now mediation
as a method of dispute resolution is quite common in India. Mediation is an informal process where the
mediator, who is a neutral third party, assists the disputing parties in the pursuit organization finding a
solution to their dispute. What happens in Lok Adalats is only mediation in a formal way. When mediation
is done in a formal way it is called conciliation.
Limitations of Litigation
There are many limitations associated with litigation. Litigation involves lot of delay. It is expensive. In
India, the adversary method of dispute resolution is used in litigation. The adversary method is one which
gives the parties and their lawyers a great deal of control over the way in which the facts are collected
and presented. Each party will present the evidence to the Court in a way most favourable to its own
version of the facts and adverse to that of the other party. The role of the judge is limited to that of an
umpire, ensuring that the evidence is presented in accordance withcertain ground rules. The adversary
method of dispute resolution promotes game theory of dispute resolution. Persons with good resources
are likely to win the game. Winning the game in an adversary system does not necessarily mean justice
is done or there is peaceful solution to the dispute is found. It only means that the dispute is resolved.
This is not a good way of resolving disputes in situations such as family relations or industrial relations
where no effort shall be spared to achieve maximwn production, and management and workers will strive
to collaborate in all possible ways to promote the defence efforts of the country.
As a result of the acceptance of this Resolution, there was a sharp decline in the number of disputes and
in the number of mandays lost. Workers not only worked for extra hours but also contributed to the
National Defence Fund. Emergency Production Committees were set-up, both at the Centre and in the
states to improve production and productivity. But the Resolution lost its importance when prices rose
sharply and disputes erupted once again.
Advantages of Mediation
In view of the limitations of the adversary method of dispute resolution in areas where human emotions
are also involved, the advantages of mediation as a method of dispute resolution have been seriously
considered. Mediation as a method of dispute resolution has many advantages in situations where
human emotions are involved. Unlike a court which gives a judgment with respect to the particular claim
or charge before it, mediators assist the disputants to explore their differences and to develop a mutually
acceptable formula for future co-existence. Moreover mediation is cheap and quick in resolution of
disputes. For mediation has to be successful, the mediator needs to normalise the strained relations
between the disputing parties. In order to achieve this, a mediator must to be a good counselor who can
comprehend the emotional issues associated with the problem. In the process of helping the parties give
vent to their emotions, all the minor differences which culminated in the dispute are also addressed.
Once the emotional and ego-related aspects associated with the dispute are soothed, the disputing
parties are able to negotiate in a reasonable way. Once they are reasonable in negotiating, it becomes
easy to find solution to their problems.
Mediation addresses the interests and not the positions taken by the disputing parties. It is easy to
address the interests and once that is done, it ends up in a win-win situation. There are many ways of
addressing interests. In a mediation there can be one or more mediators. The role of mediator includes
facilitating communication between the parties, assisting in identifying interests and generating options
for settlement.
Performance Management
"An assessment of an employee, process, equipment or other factor to gauge
progress toward predetermined goals. See also organizational development (OD),
performance appraisal, application performance management (APM), business
performance management (BPM), operational performance management (OPM)"
------ businessdictionary.com
Definition:
Performance management is the process of creating a work environment or setting in which people are
enabled to perform to the best of their abilities. Performance management is a whole work system that
begins when a job is defined as needed. It ends when an employee leaves your organization.
Many writers and consultants are using the term performance management as a substitution for the
traditional appraisal system. I encourage you to think of the term in this broader work system context. A
performance management system includes the following actions.
Develop clear job descriptions.
Select appropriate people with an appropriate selection process.
Negotiate requirements and accomplishment-based performance standards, outcomes, and measures.
Provide effective orientation, education, and training.
Provide on-going coaching and feedback.
Conduct quarterly performance development discussions.
Design effective compensation and recognition systems that reward people for their contributions.
We have worked with some of the most advanced organizations in terms of Performance
Management
The field of performance management can comprise two separate types of management. In one aspect
of performance management, an analyst may view the performance of a company as a whole, and also
evaluate the effectiveness of the managers and heads of companies in reaching goals. In another sense,
performance management may be a system of evaluating employees to help them reach reasonable
goals and thus ensure that the company performs better. This discussion will focus on the latter definition.
Performance management of individual employees differs. It generally includes the following: planning
work, setting goals, offering feedback and reviews, offering opportunities to learn more in ones field, and
rewarding employees who perform well.
Employee performance management works best when work is planned and goals are consistent. This
may mean having a clear way to communicate regarding work expected at the moment and upcoming
work. Planning also includes defining expectations of the employee so that he or she is not broadsided by
evaluation criteria not included in planning.
Planning and setting goals in performance management also creates a system of predictable rewards for
good performance, and consequences for poor performance. This way the employee can reasonably
assume the consequences of work performance, whether good or bad.
Performance management also involves giving feedback to employees on a more consistent basis than
the average annual review. Instead, an employees ability to exceed or failure to meet goals may be
monitored on a monthly basis. This provides the employee with either the opportunity to receive
compliments and rewards fairly regularly, or to make behavior changes sooner if performance is not up to
par.
Often employees feel that end of the year reviews contain criticisms of work in the past year that were
never openly discussed with the employee. The employee benefits from a more consistent model of
performance management evaluation, since this gives a person time to address issues and change
problem issues.
In a performance management model, employees must also be given ways to grow and develop in their
field. This means giving opportunities to work on harder projects, pairing less-skilled employees with
expert employees, and offering team models where employees can direct and make decisions. Greater
responsibility and opportunities to advance in ones field are essential to maintaining happy and
productive employees.
Rewards are also a huge part of performance management. The greatest part of this is rewards of
monetary nature, either in bonuses or raises, when employees perform well. As well, employees who
actually are now qualified to work in a high level of their field should be placed in positions of greater
responsibility, and receive a greater share of pay. Performance analysis should focus as much or more on
positive performance than it does on negative performance. Rewards for positive performance must be
real and tangible, or else the company runs the risk of becoming a negative action company only.
Employee performance management may be taught to companies who have difficulty maintaining
performance of employees or who have a long history of unhappy employees and turnaround.
Companies may hire experts in performance management to learn how to model its concepts.
Following is a process diagram that provides a graphical view of the major differences between the two
processes:
We have worked with some of the most advanced organizations in terms of Performance
ManagementDefinition
Performance Management systems typically are:
A definition of what you want an employee to do for the next performance period (normally the next quarter, half
year or full year). The definition includes specific objectives for the period, backed up by a job description which
includes the normal expectations for that position
A review of remuneration/bonuses if these objectives are met
A review of the personal development objectives
Formally Performed quarterly, half yearly or annually but with input all year round
Typically fully automated where the information is accessible to all participants at any time
Content rich if the automated Performance Management system has features such as a Performance
Diary
Following is a process diagram that provides a graphical view of the major differences between the two
processes:
We have worked with some of the most advanced organizations in terms of Performance
ManagementDefinition
Performance Management systems typically are:
A definition of what you want an employee to do for the next performance period (normally the next quarter, half
year or full year). The definition includes specific objectives for the period, backed up by a job description which
includes the normal expectations for that position
A review of remuneration/bonuses if these objectives are met
A review of the personal development objectives
Formally Performed quarterly, half yearly or annually but with input all year round
Typically fully automated where the information is accessible to all participants at any time
Content rich if the automated Performance Management system has features such as a Performance
Diary
processes:
We have worked with some of the most advanced organizations in terms of Performance
ManagementDefinition
Performance Management systems typically are:
A definition of what you want an employee to do for the next performance period (normally the next quarter, half
year or full year). The definition includes specific objectives for the period, backed up by a job description which
includes the normal expectations for that position
A review of remuneration/bonuses if these objectives are met
A review of the personal development objectives
Formally Performed quarterly, half yearly or annually but with input all year round
Typically fully automated where the information is accessible to all participants at any time
Content rich if the automated Performance Management system has features such as a Performance
Diary
Employees that achieve the organisational goals are rewarded with favourable reviews and bonuses in
line with their performance and contribution to the organisation.
Lower Stress
The employee and manager communicate more frequently and agree on changed objectives to suit
continuing changes in conditions and priorities. This is an inclusive and collaborative process, which
ensures that the employee has input and does not feel they have wasted the year. The employee works
to specific objectives that have been thought about and are relevant. If the organisation is using a
Performance Management product that has a Performance Diary, both the manager and employee attend
the review meeting with copies of their Performance Diary. This contains content from the Performance
period about to be reviewed. Given that both have content,
they feel much better prepared and stress is lower than if attending a meeting and waiting for surprises.
Moderate to High Levels of confidence
Where there is a well-structured Performance Management System that is well communicated, both the
employee and manager enter the process with better levels of confidence as there are rules that clearly
spell out what is being assessed and how. Employees are assessed on achievement of objectives that
have been clearly spelled out and agreed to. Managers have a better framework to assess an employees
performance as they know on which criteria to assess the employee. The outcome is that both individuals
have an informed discussion and focus on achievement of both personal and business objectives, not on
issues that are not relevant.
If the organisation has a system with a Performance Diary, then both parties are very well prepared with
relevant content to discuss. They have diary notes that relate to performance during the entire
Performance Period. This raises confidence and reduces stress and both parties know they can have a
content rich and factual discussion about performance.
Focused on performance
Given that these performance reviews happen more frequently, the discussion centers on performance of
objectives rather than being dominated by the employees needs. The employees needs are talked about
more frequently as are the needs of the business to achieve specific performance outcomes. This means
both the employee and manager communicate more effectively and achieve better outcomes. Emotionally
charged discussions tend to be displaced by business focused discussions on achievement of objective
outcomes.
Aligned to the corporate plan
As expectations are modified when a Performance Management system is introduced, most organisations
switch to defined performance periods. This means that strategic and operational objectives are set at the
beginning of the performance period. Formal performance reviews are then conducted quarterly or half
yearly and enable management to direct and fine tune effort in relation to the objectives.
Relevant
By conducting more frequent reviews, objectives can be adjusted and modified to suit changing business
conditions. This dramatically increases the probability that the objectives are relevant and are able to be
acted upon during the performance period.
High Visibility
By performing frequent Performance Reviews, visibility is increased dramatically. Areas of non
performance receive much more focus and attention and problems can be acted upon much quicker.
Most Performance Management systems provide reporting as to who has or has not achieved their
objectives (departments and individuals). Adjustments to objectives or strategy can then be made to
ensure expectations can be met. Alternately, expectations can be modified as appropriate.
Planning
By reviewing more frequently, all managers and staff start to plan and execute to well thought out
objectives. This results in better resource management, less fire fighting and enables managers to work
on the business, not in the business.
Human Capital Development
Given that most Performance Management systems require that managers and employees commit to a
Development Plan, employees experience real personal development and become more engaged with
the organisation. They feel part of the organisation and start to understand that they and the organisation
are interdependent. The organisation is developing the employee and the employee is working towards
developing the organisation by achieving its goals.
Compliance
Most Performance Management systems are able to provide graphical compliance reports. Therefore, the
setting of Objectives and a Development plan for employees can no longer be ignored. Employees see
real planning, are involved in setting meaningful objectives and have input into personal development
plans which benefit both themselves and the organisation as well. In all, this results in a more engaged
workforce who are more committed to achieving real outcomes for the organisation.
Summary
The major differences between appraisal systems and Performance Management are:
Performance Management is tied to achieving increased organisational performance, appraisal systems
are not tied to organisational performance
Performance Management Reviews are conducted more frequently than annual appraisals
Performance Management Objectives are aligned to strategic or operational plans
Performance Management systems typically have better compliance due to reporting (who has set
objectives and development plans, conducted reviews etc)
Performance Management focuses employees on the Performance of objectives, not how well they are
liked by their manager
Performance Management systems are accessible by all parties, all through the year and this means that
both parties attend review meetings better prepared and less stressed
Performance Management increases staff engagement as they are recognized for their efforts and
receive meaningful development
Technology has enabled organisations to move from annual appraisals/reviews to Performance
Management. Annual appraisal systems are currently the norm in most organisations as they have not yet
adopted new technology which enables Performance Management processes.
Statutory Machinery
INTRODUCTION
Traditionally, labour laws had a protective function consisting of established standards both to protect
workers in their workplace and to provide them a basic minimum level of living conditions. Because of
changing industrial and economic scenario, along with statutory machineries, voluntary machineries come
into existence. Hence, regulatory mechanisms for prevention and settlement of industrial disputes
comprises of statutory and voluntary machinery. In this unit, we will be discussing on these machineries
and also concept of lok adalats.
STATUTORY MACHINERY
The Industrial disputes Act, 1947 provides the mechanics of dispute- resolution and set-up the necessary
structure so as to create congenial climate.
What is an Industrial Dispute?
An Industrial dispute means any dispute or difference between employers and employers, or between
employers and workmen, or between workmen and workmen, which is connected with the terms and
conditions of employment of any person.
Who can raise a Dispute?
A dispute is said to have arisen when some demand is made by workmen and it is rejected by the
management or vice versa and the demand is relating to the employment. A workman can raise a dispute.
However, it is pertinent to note that a dispute between an employer and single workman does not fall
within the definition of industrial dispute, but if the workmen as a body or a considerable section of them
make a common cause with the individual workman then such a dispute would be an industrial dispute.
However, certain individual disputes relating to dismissal, discharge, retrenchment or termination of
services of a workman, are also covered. The Act implies even to industrial establishments employing a
single workman. But dispute in relation to a person who is not a workman within the meaning of the Act is
not an industrial dispute under Section 2(k).
The Industrial Disputes Act, 1947 provide for creation of different authorities to preserve industrial
harmony, prevention and settlement of industrial disputes. These are as follows:
1) Works Committee
In establishments where hundred or more workers are employed:
a) The appropriate government may require the employer to set-up works committee.
b) It is composed of equal number of representatives of workmen and management who are chosen with
consultation of the trade union.
c) Its functions are to preserve amity and establish cordial relations and to resolve differences of opinion
on matters of common interest.
2) Conciliation Officer
a) The conciliation officer may be appointed by the government for specified area or specified industries.
b) Duty of conciliation officer is to mediate in and promote the settlement of industrial disputes. Where
industrial dispute exists or is apprehended and relates to public utility, conciliation officer shall hold
conciliation proceedings and it is mandatory. In such cases conciliation officer will investigate the dispute
and induce the parties to corne to amicable settlement. However, he cannot take the decision, he has to
send report of settlement to his government. If no settlement is reached then also he has to report to the
government giving reasons on account of which settlement could not be reached. Conciliation officer to
normally submit report within 14 days of commencement of conciliation proceedings. Duty of the
conciliation officer is administrative and not judicial in nature.
If an agreement is reached by the parties, it is binding on both the parties.
3) Board of Conciliation
The government may notify constitution of board of conciliation for promoting settlement of an industrial
dispute. Its role is also consultative, like conciliation officer.
4) Court of Enquiry
The government may constitute a court of enquiry to enquire into any matter connected with an industrial
dispute. In the case of board of conciliation the object is to promote settlement of an industrial dispute.
But in the case of a court of enquiry object is to enquire into and reveal the causes of an industrial
dispute.
5) Voluntary Arbitration
It is voluntary method of resolving individual disputes if dispute is not settled by negotiating parties. Here
both parties are willing to go to an arbitrator of their choice and submit to his decision. Arbitrators are
named by the parties in the written agreement.
The number of arbitrators can be one or even more than one. Legal sanctity to this mode of settlement of
industrial disputes was given in1956 when Section lOA was introduced in Industrial Dispute Act.
6) Adjudication
The Industrial Disputes Act provides for three-tier system of adjudication of industrial disputes. The cases
either may be referred by government to court after the receipt of failure report from conciliation officer or
directly by any party. Labour courts and industrial tribunal may be constituted by the state government
while national tribunal is constituted by the central government.
i) Labour Courts: Functions of labour courts are relating to matters as under:
1) Legality of an order passed by an employer under the standing order,
2) Application and interpretation of standing orders,
3) Discharge or dismissal of workman,
4) Withdrawal of any customary concession or privilege,
5) Illegality or otherwise of a strike or lock-out, and
6) All matters (not specified for industrial court).
ii) Industrial Tribunals: The functions of industrial tribunals are as follows:
1) All matters within jurisdiction of labour courts,
2) Wages,
3) Compensatory and other allowances,
4) Hours of work and rest intervals,
5) Leave with wages and holidays,
6) Bonus, Provident Fund and Gratuity,
7) Shift Working,
8) Classification of grades,
9) Rules of Disciplines, and
10) Retrenchment and closure of establishment.
iii) National Tribunal: The national tribunal shall be constituted by the Central government (only) when
undertakings in more than one stage is affected by such industrial dispute and is of national importance
and matters relate to functioning of labour and industrial courts.
7) Grievance Settlement Authority
It is to be set-up enterprises where 50 or more workers are employed. This for settling of individual
grievances of employees. Individual disputes are to be referred to the courts when not settled at
grievances authority level.
8) Welfare Officer
Another preventive measure is under the Factories Act, 1948, i.e., the appointment of welfare officer in
the organisation if workers are 500 or more.
9) Standing Orders
Another preventive measure is certification of standing orders by enterprises under the Industrial
Employment Standing Orders Act, 1946. These standing orders require enterprises to lay down uniform
terms and conditions of employment of workers.
10) Central and State Industrial Relations Machinery
Central Industrial Relations Machinery consists of the Chief Labour Commissioner and Regional Labour
Commissioner together with Labour Enforcement Officers. The machinery has regional Offices. Their
main functions are:
i) prevention, investigation and settlement of industrial disputes in industries, or enforcement of labour
laws and awards,
ii) verification of union membership,
iii) fixation of minimum wages, etc., and
iv) central implementation and evaluation machinery ensures implementation of code of discipline, labour
laws, awards and settlements, take preventive action by settling disputes, evaluates major strikes and
lock-outs, evaluates labour laws and policy decision and suggests measures to improve them.
11) Other Preventive Measures
Some other provisions laid down in Industrial disputes Act, 1947 which discourage disputes are as under:
a) According to Sec. 9 A of Industrial Disputes Act, an employer cannot make any change in conditions of
service without giving to the workers a 21-days notice and follow the prescribed procedure for
changing them.
b) Defining of unfair labour practices on part of employees/unions and employers which have deterrent
affect as penalties are
provided under [Section 2(ra)] of lndustrial Disputes Act, 1947.
c) Provisions of laws relating to lay-off, retrenchment and closure and also regarding lock -out and strikes
which imposes
restrictions on the employers and employees.
Voluntary Machinery
Voluntary machinery for settlement of industrial disputes is based on Code of Discipline announced
in 1958. The code was approved by all central organisations of workers and employers in 16th Indian
Labour Conference at the initiative of the then Labour Minister, Shri G.L. Nanda.
1) Code of Discipline, 1958
The code reflects the policy of the government to build up an industrial democracy on voluntary basis and
is the sheetanchor of Mahatma Gandhis philosophy of industrial relations. It aims at preserving industrial
peace with the help of employers and employees. It represents a voluntary moral commitment and is not
a legal document. The code, which aims at providing an alternative to conflict for the resolution of
disputes, worked very well for some time after its adoption.
The issue of discipline e in industry was discussed in the Indian Labour Conference and the code of
discipline was framed and introduced by that tripartite body in 1958. Discipline in the relationship between
workers and employers can better be enforced if both the parties accept their responsibilites and show a
willingness to discharge them. In the absence of any statutory provision at the all-India level for the
recognition of trade union, the provision in this regard has been incorporated in the Code of Discipline.
The main elements of the code are:
The two parties agree to utilise the existing machinery for the settlement of industrial disputes.
The parties shall not resort to strikes and lock-outs without first exploring all avenues of settlement
The parties accept that the disputes not settled mutually shall be referred to voluntary arbitration.
The code specifies the criteria for the recognition of trade union and creates an obligation on employers
to recognise the majority union in an establishment or industry.
The two parties shall not resort to the unfair labour practices detailed out in the code.
Managements and trade unions agree to establish grievance procedure on a mutually agreed basis.
Initially by the end of March, 1962, the code was accepted voluntarily by about 900 independent
employers and trade unions. The number increased to around 3000 by the end of 1967. Over the years,
however, the willingness and enthusiasm of the parties to observe the code has declined, and they have
developed an attitude of indifference to the code. It has proved to be difficult for them to abide by selfimposed discipline in terms of obligations backed only by moral sanctions. Industrial Truce Resolution,
1962. With the Chinese attack in October 1962, an emergency was declared in the country, and it was
realised that production should not be jeopardised in any way. Employers and workers representatives,
in a joint meeting of their organisations held on November 3, 1962 at New Delhi, passed a resolution,
saying that the emerging method of dispute resolution which is speedy, less costly and which ends in winwin situation.
2) Code of Conduct
The other code adopted in May 1958 was the code of conduct. The representatives of the four central
trade union organisations - the INTUC, AITUC, HMS and UTUC agreed to observe certain principles
with a view to maintaining harmonious interunion relations. Inter-union and intra-union rivalries emerge
out of certain weakness of Indian trade unions such as fragmentation and multiplicity. The code was
formulated to curb these evils. But it has remained mainly on paper, for trade unions seem to have
forgotten that it exists.
3) Tripartite Bodies
The other tripartite bodies which came into existence were:
a. Indian Labour Conference,
b. Standing Labour Committee,
c. Industrial Committees, and
d. Tripartite Committee on International Labour Organisation Conventions, 1954.
4) Formation of Joint Consultative Machinery for Central Government Employees (JCM), this is also a
three-tier machinery.
5) Collective Bargaining was encouraged.
6) Workers Participation in Management Scheme was introduced through Formation of Shop Councils
and Plant Council.
MEDIATION AND LITIGATION
Mediation is very much a part of Indian culture. Litigation, on the other hand, was introduced by the
colonial masters as a top down model. It is alien to Indian culture and never got imbibed into the Indian
culture. Respectable and elderly people acting as mediators or functioning as Panchayat members is
integral to Indian culture. In the past it was these respectable and elderly people who used to help in
resolving disputes through mediation or mediation-cum-arbitration in Panchayats. Even now mediation as
a method of dispute resolution is quite common in India. Mediation is an informal process where the
mediator, who is a neutral third party, assists the disputing parties in the pursuit organization finding a
solution to their dispute. What happens in Lok Adalats is only mediation in a formal way. When mediation
is done in a formal way it is called conciliation.
Limitations of Litigation
There are many limitations associated with litigation. Litigation involves lot of delay. It is expensive. In
India, the adversary method of dispute resolution is used in litigation. The adversary method is one which
gives the parties and their lawyers a great deal of control over the way in which the facts are collected
and presented. Each party will present the evidence to the Court in a way most favourable to its own
version of the facts and adverse to that of the other party. The role of the judge is limited to that of an
umpire, ensuring that the evidence is presented in accordance withcertain ground rules. The adversary
method of dispute resolution promotes game theory of dispute resolution. Persons with good resources
are likely to win the game. Winning the game in an adversary system does not necessarily mean justice is
done or there is peaceful solution to the dispute is found. It only means that the dispute is resolved. This
is not a good way of resolving disputes in situations such as family relations or industrial relations where
no effort shall be spared to achieve maximwn production, and management and workers will strive to
collaborate in all possible ways to promote the defence efforts of the country.
As a result of the acceptance of this Resolution, there was a sharp decline in the number of disputes and
in the number of mandays lost. Workers not only worked for extra hours but also contributed to the
National Defence Fund. Emergency Production Committees were set-up, both at the Centre and in the
states to improve production and productivity. But the Resolution lost its importance when prices rose
sharply and disputes erupted once again.
Advantages of Mediation
In view of the limitations of the adversary method of dispute resolution in areas where human emotions
are also involved, the advantages of mediation as a method of dispute resolution have been seriously
considered. Mediation as a method of dispute resolution has many advantages in situations where human
emotions are involved. Unlike a court which gives a judgment with respect to the particular claim or
charge before it, mediators assist the disputants to explore their differences and to develop a mutually
acceptable formula for future co-existence. Moreover mediation is cheap and quick in resolution of
disputes. For mediation has to be successful, the mediator needs to normalise the strained relations
between the disputing parties. In order to achieve this, a mediator must to be a good counselor who can
comprehend the emotional issues associated with the problem. In the process of helping the parties give
vent to their emotions, all the minor differences which culminated in the dispute are also addressed. Once
the emotional and ego-related aspects associated with the dispute are soothed, the disputing parties are
able to negotiate in a reasonable way. Once they are reasonable in negotiating, it becomes easy to find
solution to their problems.
Mediation addresses the interests and not the positions taken by the disputing parties. It is easy to
address the interests and once that is done, it ends up in a win-win situation. There are many ways of
addressing interests. In a mediation there can be one or more mediators. The role of mediator includes
facilitating communication between the parties, assisting in identifying interests and generating options for
settlement.
Wages Definition
sec 2 (vi) "wages" means all remuneration (whether by way of salary allowances or
otherwise) expressed in terms of money or capable of being so expressed which would
if the terms of employment express or implied were fulfilled by payable to a person
employed in respect of his employment or of work done in such employment and
includes The main types of wages are: -------The Payment of Wages Act, 1936
Meaning and Definition of Wage
In the ordinary language the term wages implies 'reward' to the labourers for the
services rendered by them. It may be paid daily, weekly, fortnightly, monthly, per hour or
per unit. Services rendered by the labourer include both physical and mental services.
In the words of Benham. "Wages are a sum of money paid under contract by an
employer to a worker for services rendered."
According to ILO " Wages refer to that payment which is made by the employers to the
labourer for his services hired on the conditions of payment per hour, per day, per week
or per fortnight."
Appropriate Definition: Wages refer to that reward which is received from the employer
for the services rendered by the labourer per week, per month, per fortnight or per unit
It includes allowances also.
1.
Subsistence wage;
2.
Minimum wage;
3.
Fair Wage; and
4.
Living Wage
Subsistence Wage: - The wage that can meet only bare physical needs of a worker
and his family is called subsistence wage.
Minimum Wage: - Minimum wage is the wage that is able to provide not only for bare
physical needs but also for preservation of efficiency of worker plus some measure of
education, health and other things.
Fair Wage: - Fair wages is an adjustable step that moves up according to the capacity
of the industry to pay, and the prevailing rates of wages in the area of industry.
Living Wage:- Living wage is that which workers can maintain the health and decency,
a measure of comfort and some insurance against the more important misfortune of lie.
In any even the minimum wage must be paid irrespective of the extent of profits, the
financial condition of the establishment or the availability of workmen at lower wages.
The wages must be fair, i.e. sufficiently high to provide standard family with ,food,
shelter, clothing, medical care and education of children appropriate to the workmen. A
fair wage lies between the minimum wage and the living wage which is the goal. Wages
must be paid on an industry wise and region basis having due regard to the financial
capacity of the unit.
in any week. The major benefit of overtime working to workers is that it offers an increase in income from work.
Annual Bonus
The bonus component of the industrial compensation system, though a quite old one, had assumed a statutory status
only with the enactment of the Payment of Bonus Act, 1965. The Act is applicable to factories and other
establishments employing 20 or more employees. The Act has statutorily imposed an obligation on the employer to
pay bonus to employees at the minimum rate of 8.33 per cent of the salary earned. The maximum is fixed at 20 per
cent. The Act has restricted payment of bonus to employees drawing wages or salaries up to rupees 3,500 per
mensem. In cases of those eligible employees whose salary is more than rupees 3,500 per month, it is computed at
rupees 2,500 per month. The quantum of bonus under the Act is dependent upon available surplus.
Incentive Systems
The term incentive has been used both in the restricted sense of participation and in the widest sense of financial
motivation. It is used to signify inducements offered to employees to put forth their best in order to maximise
production results. Incentives are classified as financial and non-financial. Important financial incentives are
attractive wages, bonus, dearness allowance, traveling allowance, housing allowance, gratuity, pension, and
provident fund contributions. Some of the nonfinancial incentives are designation, nature of the job, working
conditions, status, privileges, job security, opportunity for advancement and participation in decisionmaking.
However, a vast diversity exists in regard to policy and practice of incentive payments. Incentive systems also have
been classified into three groups: individual wage incentive plan, group incentive scheme, and organisation-wide
incentive system.
The individual wage incentive plan is the extra compensation paid to an individual over a
specified amount for his production effort. Individual incentive systems are based upon certain
norms established by work measurement techniques such as past performance, bargaining
between union and the management, time study, standard data, predetermined elemental times
and work sampling. There are four types of individual incentive systems such as measured daywork, piece-work standard, group plans and gains-sharing plans. Under the measured day-work
incentive wage system, an individual receives his regular hourly rate of pay, irrespective of his
performance. Piece-work system form the most simple and frequently used incentive wage. In
this, individuals earnings are direct and proportionate to their output. Group plans embody a
guaranteed base rate to the workers in which the performance over standard is rewarded by a
proportionate premium over base pay. Gains-sharing system involves a disproportionate increase
in monetary rewards for increasing output beyond a predetermined standard. As the gains are
shared with the entrepreneurs, the worker gets less than one per cent increment in wage for every
one percent increase in output.
The group or area incentive scheme provides for the payment of a bonus either equally or
proportionately to individuals within a group or area. The bonus is related to the output achieved
over an agreed standard or to the time saved on the job the difference between allowed time
and actual time. Such schemes may be most appropriate where: (a) people have to work together
and teamwork has to be encouraged; and (b) high levels of production depend a great deal on the
cooperation existing among a team of workers as compared with the individual efforts of team
members.
The organisation-wide incentive system involves cooperation among employees and the
management and purports to accomplish broader organisational objectives such as: (i) to reduce
labour, material and supply costs; (ii) to strengthen loyalty to the company; (iii) to promote
harmonious labour-management relations; and (iv) to decrease turnover and absenteeism.
One of the aspects of organisation-wide incentive system is profit sharing under which an employee receives a share
of the profit fixed in advance under an agreement freely entered into. The major objective of the profit sharing
system is to strengthen the unity of interest and the spirit of cooperation. Some of the advantages of such a scheme
are: (i) it inculcates in employees a sense of economic discipline as regards wage costs and productivity; (ii) it
engenders improved communication and increased sense of participation; (iii) it is relatively simple and its cost of
administration is low; and (iv) it is non-inflationary, if properly devised. One of the essentials of a sound profit
sharing system is that it should not be treated as a substitute for adequate wages but provide something extra to the
participants. Full support and cooperation of the union is to be obtained in implementing such a scheme.
Fringe Benefits
The remuneration that the employees receive for their contribution cannot be measured by the mere estimation of
wages and salaries paid to them. Certain supplementary benefits and services known as fringe benefits are also
available to them. The characteristics of fringe benefits are:
1) These benefits are distinctly additional to the regular wages paid to the workers. As such, they are not provided
as a substitute for wages or salaries of the employees.
2) These benefits are meant primarily to be of advantage to the employees.
3) The advantages accrued to the employees through the provision of fringe benefits are as such they cannot be
secured through their own individual efforts.
4) Only those benefits fall within the purview of fringe benefits which are or can be expressed in cash terms.
5) The scope of fringe benefits is different from that of welfare services. Fringe benefits are provided by the
employers alone whereas welfare services may be provided by other agencies as well. Benefits that have no relation
to employment should not be regarded as fringe benefits.
Fringe benefits have been classified in several ways. In terms of their objectives, Meggison classifies them into two
groups: those providing for employees security and those purporting to increase employees job satisfaction causing
reduction in labour turnover and improvement in productivity. The former group includes retirement programmes,
workmens compensation, unemployment compensation, social insurance, and other provisions. The later group
incorporates vacations, holidays, sick leave, discounts on company goods and services, and allied tangible and
intangible benefits.
Fringe benefits are also categorised as statutory, contractual, and voluntary. Statutory benefits include social security
and medical care, unemployment compensation, workmens compensation, provident fund, and gratuity. The
benefits provided by the employers in pursuance of agreements with workers may include dearness allowance,
house rent allowance, city compensatory allowance, medical allowance, night-shift allowance, heat allowance,
transport, housing and educational allowances. Voluntary fringe benefits which are provided unilaterally by the
company include group insurance, death benevolent fund, washing allowance, leave encashment, leave travel
concession, conveyance allowance, incentive for family planning, service awards, and suggestion awards.
Currently fringe benefits are a significant part of employee compensation system and the
employees tend to take them for granted and do not link these items with wages or income as
they do not have any direct bearing on payments. They are no more on the fringe of
compensation but form an integral component of individuals earnings involving spiraling costs
for the company. However, the fringe benefit system can become effective if attempts are made
to gear them to the needs of human resource in organisational settings.
Employee Discipline
Discipline is the key to success. Theodore Roosevelt has said With self-discipline almost
everything is possible. Self discipline makes employee realize what is required at work.
Discipline can be positively related to performance. It is the bridge between goals and
accomplishments. Effective discipline should be aimed at the behavior, and not at the employee
personality. This is because the reason for discipline is to improve performance rather than
punishing the employee.
Factors necessary for effective disciplinary system include:
Training of supervisors is necessary: Supervisors and mangers need to be trained on when and
how discipline should be used. It is necessary to provide training on counseling skills as these
skills are used while dealing with problem employees. Moreover, discipline decisions taken by
trained supervisors are considered fair by both employees and managers.
Centralization of discipline: Centralized means that the discipline decisions should be uniform
throughout the organization. The greater the uniformity, higher will be the effectiveness of
discipline procedure.
corrects, moulds, strengthens, or perfects. The second meaning is control gained by enforcing obedience
and the third is punishment. By combining the first and second definitions you can say that discipline
involves the conditioning or moulding of behaviour by applying rewards or you can say that discipline
involves the conditioning or moulding of behaviour by applying rewards or penalties. The third
meaning is narrower in that it pertains only to the act of punishing wrongdoers. Besides these broad
definitions, there are others referring to organisational life in particular, for example:
Discipline is a procedure that corrects or punishes a subordinate because a rule of procedure has been
violated.
Dessler,2001
Discipline should be viewed as a condition within an organisation whereby Employees know what is
expected of them in terms of the organisations rules, Standards and policies and what the consequences
are of infractions. Rue & Byars, 1996
From the above definitions, you can find the following elements:
The objective is orderly behaviour .
Orderly behaviour is a group desire.
Orderly behaviour assists the attainment of organisational goals
When members behave appropriately as per rules, there is no need for disciplinary action. This is self
discipline.
When some members violate the rules and regulations, punitive actions are needed to correct them.
Punishment serves two purposes: first, to directly punish an individual for an offence and secondly, to set
an example for others not to violate the rules and regulations.
Those employees who observe the rules and standards are rewarded by praise, by security and often by
advancement. Those who cannot stay in line or measure up to performance standards are penalised in
such a way that they can clearly learn what acceptable performance and behaviour are. Most employees
recognise this system as a legitimate way to preserve order and safety and to keep everyone working
towards the same organisational goals and standards. For most employees, self discipline is the best
discipline. As often as not, the need to impose penalties is a fault of the management as well as of the
individual worker. For that reason alone, a supervisor should resort to disciplinary action only after all else
fails. Discipline should never be used as a show of authority or power on the supervisors part.
Let us now distinguish the major aspects of discipline.
Negative Discipline: Negative discipline involves force or an outward influence. It is the traditional aspect
of discipline and is identified with ensuring that subordinates adhere strictly to rules, and punishment is
meted out in the event of disobedience or indiscipline. As you can see, in this perspective strict penalties
are levied for the violation of rules. It is, in fact, the fear of punishment that works as a deterrent in the
mind of the subordinate. Approaching discipline from this kind of a perspective has been proving
increasingly ineffective for various reasons.
Positive Discipline: In this type of discipline subordinates comply with the rules not from fear of
punishment, but from the desire to cooperate in achieving the common goal of the organisation. In
positive discipline willingness to comply is most important. The emphasis here is on cooperative efforts to
secure compliance to organisational norms. It promotes emotional satisfaction instead of emotional
conflict, and the increased cooperation and coordination reduces the need for formal authority. This
approach to discipline will help you to achieve both individual needs of the subordinates and
organisational goals for you. It would therefore motivate your subordinates to work with zeal and fulfil their
needs. Positive discipline, in other words, calls for internalisation by your subordinates of the objectives
and expected norms of behaviour in your organisation. The positive concept of discipline assumes a
certain degree of self-discipline.
Discipline as Self-control: Discipline at one level means training that corrects, moulds, strengthens, or
perfects the behaviour. Discipline, in this sense, refers to the development of an individual, i.e., ones
efforts at self-control for the purpose of adjusting oneself to certain needs and demands. This is nothing
but what you would call self-discipline. You will agree with us that it is extremely important to have this
kind of self-discipline both in you and in your subordinates for effectively and efficiently achieving your
organisational objectives. Here again the emphasis is on establishing and ensuring a minimum degree of
orderliness. This orderliness is obtained in the modern work context by increasing the degree and extent
of compliance by subordinates. Let us examine it a little more closely.
Code of Discipline
To maintain harmonious relations and promote industrial peace, a Code of Discipline has been laid down
which applies to both public and private sector enterprises. It specifies various obligations for the
management and the workers with the objective of promoting cooperation between their representatives.
The basic objectives of Code of Discipline are to:
Maintain peace and order in industry.
Promote constructive criticism at all levels of management and employment.
Avoid work stoppage in industry.
Secure the settlement of disputes and grievances by a mutually agreed procedure.
Avoiding litigations.
Facilitate a free growth of trade unions.
Eliminate all forms of coercion, intimidation and violations of rules and regulations governing industrial
relations.
The Code is based on the following principles:
There should be no strike or lockout without prior notice.
No unilateral action should be taken in connection with any industrial matter.
Employees should follow go slow tactics
No deliberate damage should be caused to a plant or property
Acts of violations, intimidation and coercion should not be resorted
The existing machinery for the settlement of disputes should be utilized.
Actions that disturb cordial relationships should be avoided.
To ensure better discipline in industry, management and unions agree on not indulging into various
actions. These actions can b summarized as follows:
Management and Union(s) agree
that no unilateral action should be taken in connection with any industrial matter and that should be
settled at appropriate level
that the existing machinery for settlement of disputes should be utilized with the utmost efficiency
that there should be no strike or lock-out without prior notice
that neither party will have recourse to coercion, intimidation, victimization or go slow tactics
that they will avoid litigation, sit-down and stay-in strikes and lock-outs
that they will promote constructive co-operation between their representatives at all levels and as
between workers themselves
that they will establish upon a mutually agreed grievance procedure which will ensure a speedy and full
investigation leading to settlement;
that they will abide by various stages in the grievance procedure and take no arbitrary action which would
by-pass this procedure; and
Management Agrees
not to increase work-loads unless agreed upon or settled otherwise
not to support or encourage any unfair labor practice such as discrimination and victimization of any
employee
to take prompt action for settlement of grievances and implementation of settlements, awards, decision
and orders
to take appropriate disciplinary action against its officers and members in cases where enquiries reveal
that they were responsible for precipitate action by workers leading to indiscipline
Union agrees
not to engage in any form of physical duress
not to permit demonstrations which are not peaceful
that their members will not engage or cause other employees to engage in any union activity during
working hours
to discourage unfair labor practices such as negligence of duty, damage to property and insubordination
to take prompt action to implement awards, agreements, settlements and decisions .
Indiscipline
Indiscipline refers to the absence of discipline. Indiscipline, therefore, means nonconformity to formal and
informal rules and regulations. We cannot afford indiscipline as it will affect the morale, involvement and
motivation of subordinates in the organisation. Indiscipline often leads to chaos, confusion, and reduces
the efficiency of the organisation. It often leads to strikes, go-slows, absenteeism, resulting in loss of
production, profits and wages.
Factors Leading to Indiscipline
Various socio-economic and cultural factors play a role in creating indiscipline in an organisation. We
wonder if you realise the fact that often indiscipline may arise because of poor management on your part.
Insensitive and thoughtless words and deeds from a manager are potent reasons for subordinates to
resort to acts of indiscipline. Defective communication by the superiors and ineffective leadership
devoid of tactful human relations approach can cause indiscipline among subordinates. Indiscipline by
your subordinate may be an outcome of your nonresponse to his grievance. Your subordinates may
indulge in acts of indiscipline because of unfair practices on your part, like the wage differentials,
unreasonable declaration of payment of bonus or non-payment, wrong work assignments, defective
grievance handling, etc. The payment of low wages is perhaps another reason for indiscipline. When the
worker is paid low wages and in addition you demand more and more work from him, he becomes
dissatisfied, dishonest and insubordinate. Poverty, frustration and indebtedness, generally overshadow
his mind which makes him agitated and indisciplined. His mind and thought are more towards destruction
than constructive discipline.
Low payment of wages also creates lack of motivation in your subordinates. After all, each individual
needs response, security, recognition and new experience. A workman joins your organisation and
agrees to give a certain amount of work and loyalty, while he expects at the same time, in return, an
adequate economic reward, security, fair human treatment and other kinds of support from you. If he
does not get what he expected, he starts getting dissatisfied. He gradually begins to express his
grievance by way of absenting himself, coming late to the office, inefficiency and insubordination.
Defective communication between you and your subordinate also leads to conflict of various kinds. Very
often your subordinates get no opportunity to express their feelings and sentiments. Unless you adopt a
humane and understanding approach there is more likelihood that your subordiate may take recourse to
indiscipline.
Forms of Indiscipline
Absenteeism, insubordination, violation of plant rules, gambling, incompetence, damage to machine and
property, strikes, dishonesty and other forms of disloyalty lead to industrial indiscipline. These are all
forms of misconduct against the management. If an act of an employee is prejudicial or likely to be
prejudicial to the interests of the employer or to his reputation, it is a misconduct. The act of an employee
can become a misconduct in the following cases:
a. where the act of a workman is inconsistent with the peaceful discharge of his duty towards his
employer;
b. where the act of the employee makes it unsafe for the employer to retain him in service;
c. where the act of the employee is so grossly immoral that all reasonable men would not trust that
employee;
d. where the conduct of the employee is such as to open before him ways for not discharging his duties
properly;
e. where the conduct of the employee is such that the employer cannot rely on his faithfulness;
f. where the conduct of the employee is insulting and insubordinate to such a degree as to be
uncomfortable with the continuance of a superior-subordinate
g. relationship;
h. where the workman is abusive or he disturbs the peace at the place of his employment; and
i. where the employee is habitually negligent in respect of the duties for which he is engaged.
It is very difficult to lay down exhaustively as to what would constitute misconduct and indiscipline. It
would depend upon the examination of facts. Some of the acts of misconduct are mentioned in the Model
Standing Orders as a part of the rules made under the Industrial Employment (Standing Orders) Act of
1946. Non-performance of duty is a serious misconduct, because it is basically inconsistent with the
obligations of employment. Under the act of negligence, an employee fails to give full care and attention
on account of which the work becomes defective, and production suffers both in quantity and quality. It is
a misconduct to cause disorder on the premises, intimidate, threaten or assault other employees and use
abusive language. Preventing the entry and exist of willing employees and movement of goods to and
from the factory, obstructing the work being carried on, damaging the property of the employer, indulging
in mischief or other objectionable activities, occupying the employers premises or property, go-slow, etc.
are forms of misconduct.
Insubordination, assault or threat to superior officers, defamation, making false complaint, are all acts of
indiscipline. Non-performance of work during working office hours, tampering with official records,
misappropriation of accounts are acts of indiscipline which are considered to be of serious gravity.
i)
admitting the charges and requesting for mercy, or
ii)
denying the charges and requesting for an enquiry, or
iii)
not submitting any explanation at all, or
iv)
requesting for more time to submit explanation.
In a case where the workman admits the charge which is of a minor nature and begs for mercy, no
enquiry is held and decision is taken accordingly on the charge-sheet. If, however the misconduct is
serious enough to warrant discharge or dismissal, the management should still arrange to hold a proper
enquiry, the admission of the charges notwithstanding.
In a case where the workman submits an explanation mentioning that the charges levelled against him
are false, baseless, motivated, concocted, etc. A proper enquiry as per procedure should be held before
awarding any punishment.
When the workman fails to submit any explanation within the specified time limit, the management should
take steps to hold a proper enquiry.
When the workman concerned makes a bonafide request on reasonable grounds for extension of time to
submit explanation, the same should be granted.
4) Notice for Holding the Enquiry
After consideration of the explanation of the charge-sheeted workman or when no reply is received within
the specified time limit, the disciplinary authority should issue an order appointing an enquiry officer or an
enquiry committee to hold the enquiry of the charge-sheet. The enquiry officer can be an official of the
company, or even an outsider, but care should be taken to appoint only such a person as enquiry officer
who is neither a witness nor is personally interested in any way in the matter for which
the charge-sheet has been issued. It should also contain the name of the management representative.
Thereafter, the enquiry officer should issue a notice of enquiry. This notice of enquiry should clearly
mention the date, time and place of enquiry. It should ask the workman to present himself with his
witnesses/documentary evidence, if any, for the enquiry. It should also be mentioned in the notice of
enquiry that if the workman fails to attend the enquiry on the appointed date and time, the same will he
held ex-parte. A reasonable period of time should be given to the workman for preparing his defence
before the enquiry is held.
5) Holding of the Enquiry
The object of holding an enquiry is to find out whether the workman is guilty of the charges levelled
against him in the charge-sheet, or not. In doing so, the enquiry officer gives the workman a reasonable
opportunity to defend himself by cross-examining the witnesses/documentary evidence/exhibits produced
against him and by examining the witnesses/documentary evidence in his defence. The workman
concerned can also make statement in his defence apart from what is stated in reply to the charge-sheet.
It should be clearly understood that it is for the managements representative, i.e., evidence officer to
prove the charges against a workman by adducing evidence during the enquiry and it is not the workman
who has to prove his innocence. Unless management side has been able to prove the case against the
workman, he should not be considered guilty.
6) The Enquiry
On the appointed date and time, fixed for the enquiry, the following persons should be present apart from
the enquiry officer.
a. Presenting Officer: He is the person who will lead the case from the managements side by
producing witnesses and relevant documentary evidence in support of the charge. He may himself be a
witness, in which case he is the first person to be examined. The presenting officer has a right to crossexamine a charge-sheeted workman as well as the witness/documentary evidence produced by him.
b. Delinquent Employee: No enquiry can be said to have been held as per procedure in the absence of
the charge-sheeted employee. However if he refuses to take part in the enquiry after presenting himself,
or when he does not report for the enquiry despite receiving the notice to him, the enquiry may proceed
exparte, provided in the notice of the enquiry a specific mention to that effect had been made. Also, if
during the enquiry, the delinquent employee withdraws himself, the same me be held ex-parte. In such a
case, it is not advisable to postpone the enquiry and give another opportunity to the delinquent employee
rather than holding ex-parte enquiry. In a case, where the delinquent employee turns up for the enquiry
after some witnesses have been examined, it would be proper for the enquiry officer to allow him to
participate in the enquiry after recording this fact in the proceedings. The enquiry officer should recall the
witnesses who have already been examined in the absence of the delinquent employee so that he get an
opportunity to cross-examine such witnesses.
c. Representative of the Delinquent Employee: If the delinquent employee writes to the charge-sheet
or makes a subsequent request that he should be allowed to take a knowledgeable co-worker of his
choice to assist him in the enquiry, the same should normally be allowed. In some companies, union
committee member of the recognised trade union is allowed to attend an enquiry on the specific request
of the workman, to either assist him or play the role of an observer as per procedure.
d. The Procedure of Enquiry: At the commencement of the enquiry, if the delinquent employee is
present, the enquiry officer should record the date, time and place of enquiry, names of the persons
present and obtain their signatures on the order-sheet. Thereafter, he should proceed as follows:
i. Read out and explain the charges and the reply of the charge-sheet to the delinquent employee
and get his confirmation to that effect. In case the delinquent employee has not accepted the charge in
reply to the charge-sheet, he should be asked if he pleads guilty of the charges. If the charges are
admitted, that should be recorded and signatures of all concerned, with date, should be taken. A fullfledged enquiry need not be held if the misconduct is of a minor nature. In case the charge, if proved, is
serious enough to warrant discharge or dismissal, the proper course is to hold the enquiry.
ii. Explain to the delinquent employee concerned the procedure to be followed in the enquiry, viz.,
that the presenting officer
will produce witnesses/documentary evidence/exhibits in support of the
charge and the delinquent employee will have opportunity to cross examine. Thereafter the delinquent
employee should be given opportunity to produce his witnesses/ and the management representative will
have a right to cross-examine them.
iii. The delinquent employee will have further opportunity to make statement, if any, in his defence. At
any stage of the enquiry, the enquiry officer can seek clarification from any witness or the delinquent
employee by puffing questions to him. Neither the presenting officer nor the delinquent employee can put
leading questions to their respective witnesses.
iv. Witnesses in support of the charge are to be examined one by one in the presence of the
delinquent employee.
v. The charge-sheeted workman is to be given an opportunity to cross-examine managements
witnesses. In case he declines to cross-examine any witness, an endorsement to that effect should be
recorded by the enquiry officer.
vi. The delinquent employee should be asked to produce his own witnesses one by one and the
presenting officer will be allowed to cross-examine them. The delinquent employee should be asked to
give his statement after his witnesses are examined and cross-examined. He may also produce
documentary evidence, if any. In case the delinquent employee declines to produce any
witness/documentary evidence or declines to give any statement, the enquiry officer should make a
record to that effect in the order-sheet and obtain signatures of all concerned. If the enquiry remains
incomplete in the first sitting and some more witnesses are required to be examined, it may be
continued or any other day mutually agreed by both sides. In such a case, the enquiry officer should
make a suitable endorsement in the order-sheet and obtain signatures of all concerned.
vii. On each. page of the enquiry proceedings, the signature with date of the charge-sheeted
workman, his representative, if any, the concerned witness and the management representative should
be taken. The concerned witness should sign on each page of his statement only. The enquiry officer will
sign on each page of the proceedings after endorsing that the statement has been recorded by him and
explained to the parties in their language before they were asked to sign. If the delinquent employee
refuses to put his signature even after he had been asked to do so, the enquiry officer should make an
endorsement to that effect and get it attested by others present.
e) Ex-parte Enquiry: If, on the day fixed for the enquiry, the delinquent employee does not turn up, an
ex-parte enquiry may be held by following the usual procedure. In such an enquiry, the presenting officer
has to lead the evidence against the charge-sheeted workman. The enquiry officer, by putting questions
to the witnesses, get facers to come to reasonable conclusion about the validity or otherwise of the
charges. As stated earlier, it is advisable to fix another date of enquiry, instead of holding an ex-parte
enquiry on the first sitting itself.
The Enquiry Report: After the enquiry is over the enquiry officer makes an appreciation of the evidence
on record and comes to his conclusion. If there is no corrobortive evidence on a particular point, the
enquiry officer has to give his own reasons for accepting or rejecting the evidence of such a witness. The
enquiry report is a document which should clearly indicate whether the charges levelled against the
delinquent employee are proved or not. The conclusion of the enquiry officer should be logical and based
only on evidence brought out during the enquiry. The enquiry officer may record clearly and precisely his
conclusions with reasons for the same. There is no place for any conjecture or surmises in the enquiry
report. It should be such that as per the evidence on record, any impartial man, not connected with the
case, should be able to come to the same conclusion as that of the enquiry officer.
7) Final Decision of the Disciplinary Authority
The enquiry report is submitted to the Disciplinary Authority. Before he takes a decision on the findings of
the enquiry officer, he is required to furnish a copy of the enquiry officers report to the concerned
employee. If he agrees with the findings of the enquiry officer, after considering the gravity of the
misconduct and the past record of the delinquent employee equitable treatment with precedents of action
taken, etc., he may pass an order on the quantum of punishment after recording his reasons for the same
in writing. An order in writing is passed to that effect and is communicated to the delinquent employee.
In case the disciplinary authority decides to punish the employee for his misconduct, the following are the
punishments, which he can impose, depending upon the severecy of the misconduct. There are two
kinds of punishment:
i) Minor Punishments
a. Warning or Sensor;
b. Fine (keeping the provisions of Section 8 of Payment of Wages Act in view); and
c. Withholding of increment (either with cumulative effect or non-cumulative effect).
ii) Major Punishments
a) Demotion;
b) Discharge; and
c) Dismissal
A letter communicating the order of discharge/dismissal should set out clearly the charge(s) proved
against the delinquent employee and the date from which the order is to become effective. Normally, the
order of discharge/dismissal should be effective from the date of the order, unless there is an express
provision in the standing orders to the contrary .
8) Appeal
An employee can appeal against an order imposing upon him any of the penalties. The appellate
authority may confirm, enhance, reduce or set-aside the penalty.
9) Conclude
It is the employers right to direct its internal administration and maintain discipline. However, before
passing an order of discharge or dismissal, the employer has to arrange for a fair and proper enquiry in
consonance with the principles of natural justice. The reason is that its decision may not be reversed by
the adjudicator at a later date, if the workman raises an industrial dispute challenging the order. A
domestic enquiry need not be conducted in accordance with the technical requirements of a criminal trial
but they must fairly conducted and in holding them, consideration of fair play and natural justice must
govern the conduct of the enquiry officer. A domestic enquiry must be conducted with an open mind,
honestly and bonafide, with a view to determine whether the charge framed against the
delinquent employee is proved or not. In todays context, no employer can discharge or dismiss a
delinquent workman even for a serious misconduct without following an elaborate procedure for taking
disciplinary action. An employer can be guilty and penalised, if the adjudicator finds that there was want
of good faith; or there was victimisation or unfair labour practices; or the management was guilty of a
basic error or violation of a principle of natural justice; or on the grounds that the finding was completely
baseless or perverse.
Mentoring
Mentoring
Mentoring
Personal and Professional Qualities of a Mentor
The meetings are not as structured and regular than in coaching. Executive mentoring is
generally done by someone inside the company. The executive can learn a lot from mentoring.
By dealing with diverse mentees, the executive is given the chance to grow professionally by
developing management skills and learning how to work with people with diverse background,
culture, and language and personality types.
Executives also have mentors. In cases where the executive is new to the organization, a senior
executive could be assigned as a mentor to assist the new executive settled into his role.
Mentoring is one of the important methods for preparing them to be future executives. This
method allows the mentor to determine what is required to improve mentees performance.
Once the mentor identifies the problem, weakness, and the area that needs to be worked upon,
the mentor can advise relevant training. The mentor can also provide opportunities to work on
special processes and projects that require use of proficiency.
Some key points on Mentoring
Mentoring focus on attitude development
Conducted for management-level employees
Mentoring is done by someone inside the company
It is one-to-one interaction
It helps in identifying weaknesses and focus on the area that needs improvement
The Advantages of Mentoring
For the mentee, mentoring provides:
a point of personal contact other than faculty advisors/course instructors
a source of support and guidance
a critical friend with whom weaknesses can be explored and addressed and
achievements shared and built upon
regular meetings in which specific issues and ideas can be discussed and developed
a chance to explore teaching and learning in a non-assessed and non-threatening environment
a smoother transition into the workplace
For the mentor, mentoring provides:
a catalyst to reflect upon ones own practice
a way of developing personal and professional skills further
opportunities to network with other professionals
job satisfaction and increased self-esteem
new opportunities for career and professional development.
What does a mentor actually do?
A mentor helps to induct, orientate and develop the teaching and learning skills of the mentee
by:
Attending regular meetings with the mentee
Being well-prepared for meetings with the mentee
Helping the mentee to set the agenda for discussions
Making oneself available on an ad hoc basis to freely provide appropriate support and guidance
Developing, monitoring and reviewing an Individual Learning Plan with the mentee
Initiating reflective dialogue with the mentee, particularly about teaching and learning
Sharing, exploring and reflecting on teaching and learning pedagogies
Listening, clarifying, reflecting back and discussing
Acting as a sounding board
Conducting developmental non-graded observation(s) of the mentee
Being observed by the mentee
Facilitating the mentee to observe others
Providing constructive feedback after observation
Informing and supporting the mentee to adopt the policies, practices and documentation relating
to both internal systems and accrediting bodies
Conducting oneself within professional boundaries, adhering to the providers own policies and
practices
Observing the confidential nature of the relationship and the dialogue arising within it
Attending group meetings with other mentors
Attending relevant training to improve ones own performance and skills
Sharing information to the mentee about continuing professional development and opportunities
Having a duty of care towards the mentee and helping them to deal with any emotional
responses triggered by the training process
Guarding against the exploitation of the mentee by other parties
Personal and Professional Qualities of a Mentor
Mentoring
Mentoring
Personal and Professional Qualities of a Mentor
Detailed Activities of a Mentor
Benefits of Mentorship
Mentee's Responsibilities
Counseling
The Qualities of a Mentor
It is worth thinking about the personal qualities and professional skills which make
effective mentors:
Personal qualities
good interpersonal and communication skills
approachable
empathy
good listening skills
a genuine desire to help others
an open mind and flexible attitude
is supportive without being controlling
can give guidance to a mentee without making their decisions
will always give honest answers
doesnt apportion blame but looks to find solutions
actively questions the mentee
ability to probe and challenge
willingness to debate and discuss
has realistic expectations of themselves and others
good organizational skills.
Professional skills
excellent teacher practitioner
knowledge and experience of the mentees new area of work
knows organisational routines, procedures and policies
enthusiastic about teaching
can offer a range of perspectives and teaching and learning techniques
can make suggestions informed by their own expertise and experience
can empower the mentee with the knowledge gained from their experience
can help the mentee to identify practice which meets professional requirements.
Detailed Activities of a Mentor
Mentoring
Mentoring
Personal and Professional Qualities of a Mentor
Detailed Activities of a Mentor
Benefits of Mentorship
Mentee's Responsibilities
Counseling
Detailed Activities of a Mentor
Attend regular meetings with the mentee, preferably in an informal environment
Prepare for meetings
Set the agenda for discussions in collaboration with the mentee
Allow out of turn meeting with the mentee if the mentee needs one
Work out plan of action for the mentee in consultation with him
Maintain dialogue and discussions
Act as a sounding board
Observe the mentee and train mentee to observe others
Provide feedback to mentee
Acclimatize the mentee with the values, culture, policies and systems of the
organization
Maintain confidentiality befitting mentor-mentee relationship
Take relevant training to become a better mentor
Share information with the mentee about continuing professional development and
opportunities
Provide emotional support as needed
Guard against the exploitation of the mentee by other parties
Benefits of Mentorship
Mentoring
Mentoring
Personal and Professional Qualities of a Mentor
Detailed Activities of a Mentor
Benefits of Mentorship
Mentee's Responsibilities
Counseling
To the Mentee
Makes him feel at home in the organization in a short period of time
Smoother transition into the work place
Feeling of having a buddy or friend in the organization in addition to have formal
bosses and colleagues
Availability of support and guidance
Having a confidant with whom discussions on some specific sensitive issues can be
held
Developmental opportunity
Having some one who can back you up and sponsor in the organization
To the Mentor
Opportunity to develop new skill and career of mentorship
System to reflect on one's strengths and weaknesses
Channel to develop personal and professional skills further
Opportunity to network with other professionals
Job satisfaction and
Improvement in self esteem
Mentee's Responsibilities
Mentoring
Mentoring
Personal and Professional Qualities of a Mentor
Detailed Activities of a Mentor
Benefits of Mentorship
Mentee's Responsibilities
Counseling
Mentee's Responsibilities
Allow the mentor to take the lead initially
Act with courtesy with your mentor
Be an active listener and take notes when necessary
Enquire with purpose
Take the initiative for feedback and take it with open mind
Be considerate towards mentors time.
Return phone calls promptly and be on time with commitments and meetings.
Demonstrate that you have followed advice or commitments.
Express appreciation and thank the mentor
Do not talk loose about the mentor to others
Maintain confidentiality of relationship as needed
Prepare yourself to move beyond the mentoring connection once it has served its
purpose
Keep the door open to return to the mentor for assistance or advice at a future time.
Follow up with the mentor after termination to keep in touch, to share progress and
to continue to express gratitude.
Counseling
Mentoring
Mentoring
Personal and Professional Qualities of a Mentor
Detailed Activities of a Mentor
Benefits of Mentorship
Mentee's Responsibilities
Counseling
Counseling is interviewing the person being counselled and helping to solve his
problems through human approach of sharing and guidance.
Counseling is sitting down in private setting for an open discussion with an
employee. Sometimes it is to pay a sincere compliment, sometimes it is to solve a
problem that is hurting productivity/effectiveness, sometimes it is because an
employee violated your discipline line and you need to talk about improvement in
his behavior.
It is communicating one to one, in private. It is interviewing- it's a two way dialogue
and not one way sermonizing or advising.
It is encouraging the other person to to talk about himself so that the problem and
it's reasons emerge clearly and solutions can be worked out.
One of the most important counseling skills is being a good listener.
In an organization, counseling can be done by the team leader, supervisor or
manager or one can seek the expertise and assistance of an in-house or external
professional counselor.
Situations that Call for Counseling in an Organization
Given below is a partial indicative list of situations that call for counseling from a
superior to his subordinate:
When an employee violates your standards.
When an employee is consistently late or absent.
When an employees productivity is down.
When one employee behaves in such a way that productivity of others is negatively
affected.
When two employees have a conflict that is becoming public and it is affecting the
work.
When you want to compliment an individual.
When you want to delegate a new task.
Given below is a partial indicative list of situations which do not call for counseling:
When you disagree with an employees life style
matters concerning members, such as births, deaths, marriages, promotion and achievements.
5) Research: Of late, this is gaining importance and is intended mainly to provide updated information to
union negotiators at the bargaining table. Such research is to be more practical than academic,
concerning problems relating to day-today affairs of the union and its activities and union and
management relations. Some of the research activities are : (i) collection and analysis of wage data
including fringe benefits, and other benefits and services through surveys of comparative practices, data
on working conditions and welfare activities; (ii) preparation of background notes for court cases and also
position papers for union officials; (iii) collection and analysis of macro data relating to the economy,
industry sectors etc. All the above mentioned activities and services are considered normal activities of
unions in the Trade Unions Act which stipulates the objectives on which general funds of the union can be
spent.
4. Political functions: These functions include affiliating the union with a political party, helping the
political party in enrolling members, collecting donations, seeking the help of political parties during the
periods of strikes and lockouts.
industrial relations. Trade unions can thus contribute to the improvements in level of production and
productivity, discipline and improve quality of work life.
to become an employee of the shop. The Taft-Hartley Act of 1947 bans closed shop agreements in the
USA, although they still exist in the construction and printing trades. Sometimes, the closed shop is also
called the Hiring Hall.
b. Union Shop: Where there is an agreement that all new recruits must join the union within a fixed
period after employment it is called a union shop. In the USA where some states are declared to be rightto-work.
c. Preferential Shop: When a Union member is given preference in filling a vacancy, such an
agreement is called Preferential Shop.
d. Maintenance Shop: In this type of arrangement no compulsory membership in the union before or
after recruitment exists. However, if the employee chooses to become a member after recruitment, his
membership remains compulsory right throughout his tenure of employment with that particular employer.
This is called a maintenance of membership shop or maintenance shop.
e. Agency Shop: In terms of the agreement between management and the union a non union member
has to pay the union a sum equivalent to a members subscription in order to continue employment with
the employer. This is called an agency shop.
f. Open Shop: Membership in a union is in no way compulsory or obligatory either before or after
recruitment. In such organisations, sometimes there is no union at all. This is least desirable form for
unions. This is referred to as an open shop.
The above classifications are more usual in the west than on the Indian sub-continent.
is essentially pragmatic, struggles constantly not only against the employers for an enlarged opportunity
measure in income, security and liberty in the shop and industry, but struggles also, whether consciously
or unconsciously, actively or passively, against the intellectual who would frame its programmes and
shape its policies.
But Perlman also felt that a theory of the labour movement should include a theory of the psychology of
the labouring man. For instance, there was a historical continuity between the guilds and trade unions,
through their common fundamental psychology; the psychology of seeking a livelihood in the face of
limited economic opportunity. It was when manual workers became aware of a scarcity of opportunity,
that they banded together into unions for the purpose of protecting their jobs and distributing employment
opportunities among themselves equitably, and to subordinate the interests of the individual to the whole
labour organism. Unionism was ruled thus by this fundamental scarcity consciousness (Perlman, 1970).
h. Hoxies Functional Classification of Unionism: He classified Unionism on the basis of their
functions. His classification were Business Unionism for protecting the interest of various craftmen, Uplift
unionism for the purpose of contributing better life such as association of sales engineers etc.
Revolutionary Unionism which is eager to replace existing social order, Predatory Unionism which
rests on these support of others.
i. Tannenbaums Theory of Man Vs. Machine: According to him Union is formed in reaction to
alienation and loss of community in an individualistic and unfeeling society. In his words, the union
returns to the workers his society, which he left behind him when he migrated from a rural background to
the anonymity of an urban industrial location. The union gives the worker a fellowship and a value system
that he shares with others like him. Institutionally, the trade union movement is an unconscious effort to
harness the drift of our time and reorganise it around the cohesive identity that men working together
always achieve.
as accident, injury, illness, unemployment, etc. The trade union secure retirement
benefits of the workers and compel the management to invest in welfare services for the
benefit of the workers.
4. Sense of Participation
The employees can participate in management of matters affecting their interests only if
they join trade unions. They can influence the decisions that are taken as a result of
collective bargaining between the union and the management.
5. Sense of Belongingness
Many employees joins a union because their co-workers are the members of the union.
At times, an employee joins a union under group pressure; if he does not, he often has
a very difficult time at work. On the other hand, those who are members of a union feel
that they gain respect in the eyes of their fellow workers. They can also discuss their
problem with the trade union leaders.
6. Platform for self-expression
The desire for self-expression is a fundamental human drive for most people. All of us
wish to share our feelings, ideas and opinions with others. Similarly the workers also
want the management to listen to them. A trade union provides such a forum where the
feelings, ideas and opinions of the workers could be discussed. It can also transmit the
feelings, ideas, opinions and complaints of the workers to the management. The
collective voice of the workers is heard by the management and give due consideration
while taking policy decisions by the management.
7. Betterment of relationships
Another reason for employees joining unions is that employees feel that unions can
fulfill the important need for adequate machinery for proper maintenance of employeremployee relations. Unions help in betterment of industrial relations among
management and workers by solving the problems peacefully.
the country. Economic, political and social conditions of the day influenced the growth of trade union
movement in India. Establishment of International Labour Organisation in 1919 helped the formation of
trade unions in the country. Madras Labour Union was formed on systematic lines in 1919. A number of
trade unions were established between 1919 and 1923. Category wise unions, like Spinners Union and
Weavers Union, came into existence in Ahmedabad under the inspiration of Mahatma Gandhi. These
unions were later federated into an industrial union known as Ahmedabad Textile Labour Association. This
union has been formed on systematic lines and has been functioning on sound lines based on the
Gandhian Philosophy of mutual trust, collaboration and non-violence.
All India Trade Union Congress
The most important year in the history of Indian Trade Union movement is 1920 when the All India Trade
Union Congress (AITUC) was formed consequent upon the necessity of electing delegates for the
International Labour Organisation (ILO). This is the first all India trade union in the country. The first
meeting of the AlTUC was held in October, 1920 at Bombay (now Mumbai) under the presidentship of
Lala Lajpat Rai. The formation of AlTUC led to the establishment of All India Railwaymens Federation
(AIRF) IN 1922. Many Company Railway Unions were affiliated to it. Signs of militant tendency and
revolutionary ideas were apparent during this period.
a) Period of splits and mergers: The splinter group of AITUC formed All India Trade Union Federation
(AlTUF) in 1929. Another split by the communists in 1931 led to the formation of All India Red Trade
Union Congress. Thus, splits were more common during the period. However, efforts were made by the
Railway Federation to bring unity within the AITUC unity. These efforts did bear fruit and All India Red
Trade Union Congress was dissolved. Added to this, All India Trade Union Federation also merged with
AITUC. The unified AITUCs convention was held in 1940 in Nagpur. But the unity did not last long.
The World Was II brought splits in the AITUC. There were two groups in the AITUC, one supporting the
war while the other opposing it. the supporting group established its own central organisation called the
Indian Federation of Labour. A further split took place in 1947, when the top leaders of the Indian National
Congress formed another central organisation.
b) Indian National Trade Union Congress: The efforts of Indian National Congress resulted in the
establishment of Indian National Trade Union Congress (INTUC) by bringing the split in the AITUC,
INTUC started gaining membership right from the beginning.
c) Other Central Unions: Socialists separated from AITUC had formed Hind Mazdoor Sabha (HMS) in
1948. The Indian Federation of Labour merged with the HMS, Radicals formed another union under the
name of United Trade Union Congress in 1949. Thus, the trade union movement in the country was split
into four distinct central unions during the short span of 1946 to 1949. Some other central unions were
also formed. They were Bharatiya Mazdoor Sangh (BMS) in 1955, the Hind Mazdoor Panchayat (HMP) in
1965 and the Centre of Indian Trade Unions (CITU) in 1970. Thus, splinter group of INTUC formed Union
Trade Union Congress, the split in the Congress Party in 1969 resulted in the split in INTUC and let to the
formation of National Labour Organisation (NLO).
Present Position
There are over 9,000 trade unions in the country, including unregistered unions and more than 70
federations and confederations registered under the Trade Unions Act, 1926. The degree of unionism is
fairly high in organised industrial sector. It is negligible in the agricultural and unorganised sectors.
Though the number of unions has greatly increased in the last four decades, the union membership per
union has not kept pace. The National commission on labour has stated that only 131 unions had a
membership of over 5,000. More than 70% of the unions had a membership of below 500. Over the years
the average membershipf igures per union have faIlen steadily from about 1387 in 1943 to 632 in 1992-93
(Pocket Book of Labour Statistics, 1997). Unions with a membership of over 2000 constitute roughly 4 per
cent of the total unions in the country.
There is a high degree of unionisation (varying from 30% to over 70%) in coal, cotton, textiles, iron and
steel, railways, cement, banking, insurance, ports and docks and tobacco sector. White-collar unions
have also increased significantly covering officers, senior executives, managers, civil servants, self
employed professions like doctors, lawyers, traders, etc. for safeguarding their interest.
There are as many as 10 central trade union organisations in the country (as against one or two in UK,
Japan, USA). The criteria for recognition as Central Trade Union has been that the combined strength
should be 5 lacs numbers with a spread over to at least 4 states and 4 industries as on 31.12.89. Ten
such Trade Unions are; (1) BMS (2) INTUC (3) HMS, (4) U.T.U.C - LS (5) AITUC (6) CITUC (7) NLO (8)
UTUC
(9) TUCC (10) NFITU. As per one survey (Economic Times, 24.9.97) the five leading Trade Unions
strength are as follows:
Trade Union Strength
BMS - 331 Lakhs
INTUC - 271 Lakhs
AITUC - 18 Lakhs
HMS - 15 Lakhs
CITU - 3.4 Lakhs
Servants of India and Burma (1897), Management the Printers Union, Calcutta (1905) and the Bombay
Postal Union (1907), the Kamgar Hitavardhak Sabha (1910) and the Social Service League (1910). But
these unions were treated as ad hoc bodies and could not serve the purpose of trade unions.
Modest Beginning
The beginning of the Labour movement in the modest sense started after the outbreak of World War I in
the country. Economic, political and social conditions of the day influenced the growth of trade union
movement in India. Establishment of International Labour Organisation in 1919 helped the formation of
trade unions in the country. Madras Labour Union was formed on systematic lines in 1919. A number of
trade unions were established between 1919 and 1923. Category wise unions, like Spinners Union and
Weavers Union, came into existence in Ahmedabad under the inspiration of Mahatma Gandhi. These
unions were later federated into an industrial union known as Ahmedabad Textile Labour Association. This
union has been formed on systematic lines and has been functioning on sound lines based on the
Gandhian Philosophy of mutual trust, collaboration and non-violence.
All India Trade Union Congress
The most important year in the history of Indian Trade Union movement is 1920 when the All India Trade
Union Congress (AITUC) was formed consequent upon the necessity of electing delegates for the
International Labour Organisation (ILO). This is the first all India trade union in the country. The first
meeting of the AlTUC was held in October, 1920 at Bombay (now Mumbai) under the presidentship of
Lala Lajpat Rai. The formation of AlTUC led to the establishment of All India Railwaymens Federation
(AIRF) IN 1922. Many Company Railway Unions were affiliated to it. Signs of militant tendency and
revolutionary ideas were apparent during this period.
a) Period of splits and mergers: The splinter group of AITUC formed All India Trade Union Federation
(AlTUF) in 1929. Another split by the communists in 1931 led to the formation of All India Red Trade
Union Congress. Thus, splits were more common during the period. However, efforts were made by the
Railway Federation to bring unity within the AITUC unity. These efforts did bear fruit and All India Red
Trade Union Congress was dissolved. Added to this, All India Trade Union Federation also merged with
AITUC. The unified AITUCs convention was held in 1940 in Nagpur. But the unity did not last long.
The World Was II brought splits in the AITUC. There were two groups in the AITUC, one supporting the
war while the other opposing it. the supporting group established its own central organisation called the
Indian Federation of Labour. A further split took place in 1947, when the top leaders of the Indian National
Congress formed another central organisation.
b) Indian National Trade Union Congress: The efforts of Indian National Congress resulted in the
establishment of Indian National Trade Union Congress (INTUC) by bringing the split in the AITUC,
INTUC started gaining membership right from the beginning.
c) Other Central Unions: Socialists separated from AITUC had formed Hind Mazdoor Sabha (HMS) in
1948. The Indian Federation of Labour merged with the HMS, Radicals formed another union under the
name of United Trade Union Congress in 1949. Thus, the trade union movement in the country was split
into four distinct central unions during the short span of 1946 to 1949. Some other central unions were
also formed. They were Bharatiya Mazdoor Sangh (BMS) in 1955, the Hind Mazdoor Panchayat (HMP) in
1965 and the Centre of Indian Trade Unions (CITU) in 1970. Thus, splinter group of INTUC formed Union
Trade Union Congress, the split in the Congress Party in 1969 resulted in the split in INTUC and let to the
formation of National Labour Organisation (NLO).
Present Position
There are over 9,000 trade unions in the country, including unregistered unions and more than 70
federations and confederations registered under the Trade Unions Act, 1926. The degree of unionism is
fairly high in organised industrial sector. It is negligible in the agricultural and unorganised sectors.
Though the number of unions has greatly increased in the last four decades, the union membership per
union has not kept pace. The National commission on labour has stated that only 131 unions had a
membership of over 5,000. More than 70% of the unions had a membership of below 500. Over the years
the average membershipf igures per union have faIlen steadily from about 1387 in 1943 to 632 in 1992-93
(Pocket Book of Labour Statistics, 1997). Unions with a membership of over 2000 constitute roughly 4 per
cent of the total unions in the country.
There is a high degree of unionisation (varying from 30% to over 70%) in coal, cotton, textiles, iron and
steel, railways, cement, banking, insurance, ports and docks and tobacco sector. White-collar unions
have also increased significantly covering officers, senior executives, managers, civil servants, self
employed professions like doctors, lawyers, traders, etc. for safeguarding their interest.
There are as many as 10 central trade union organisations in the country (as against one or two in UK,
Japan, USA). The criteria for recognition as Central Trade Union has been that the combined strength
should be 5 lacs numbers with a spread over to at least 4 states and 4 industries as on 31.12.89. Ten
such Trade Unions are; (1) BMS (2) INTUC (3) HMS, (4) U.T.U.C - LS (5) AITUC (6) CITUC (7) NLO (8)
UTUC
(9) TUCC (10) NFITU. As per one survey (Economic Times, 24.9.97) the five leading Trade Unions
strength are as follows:
Trade Union Strength
BMS - 331 Lakhs
INTUC - 271 Lakhs
AITUC - 18 Lakhs
HMS - 15 Lakhs
CITU - 3.4 Lakhs
Unfair Labour Practices Act 1971, Madhya Pradesh Industrial Relations Act, 1960 and other states like
Gujarat, Andhra Pradesh and Orrisa etc. which have gone for such legislations, of late.
The usual methods used to determine union strength, which is the basis of the recognitions are following:
1. Election by Secret Ballot: Under which system, all eligible workers of an establishment may vote for
their chosen union, elections to be conducted by a neutral agent, generally the Registrar of Unions, in a
manner very similar to the conduct of general elections. Once held, the results of the elections would
remain valid for a minimum period, usually two years.
2. Check-Off method: Under which each individual worker authorises management in writing to deduct
union fees from his wages and credit it to the chosen union. This gives management concrete evidene
about the respective strengths of the unions. But the system is also prone to manipulation, particularly
collision between management and a favoured union. Sometimes, genuine mistakes may occur,
particularly when the number of employees is large. It also depends on all unions accepting the method
and cooperating in its implementation.
3. Verifiction of union membership method by the labour directorate as adopted as a resolution in the
same session of the ILC and used widely in many establishments. This process is carried out by the
labour directorate, which on the invitation of unions and management of an organisation or industry,
collects particulars of all unions in a plant, with regard to their registration and membership. The claim
lists of the unions, their fees books, membership records and account books are scrutinised for duplicate
membership. Under a later amendment, unions also with lists of members in order to avoid dual
membership. After cross checking of records, physical sampling of workers, particularly in cases of doubt
or duplication, a final verified list is prepared for employers, unions and the government.
4. Rule of Thumb or intelligent guessing by management or general observation to assess union
strength, either by the response at gate meetings, strikes or discussions with employees. This is not a
reliable method, particularly in large estalishments and can also be subject to change at short intervals.
Of the above methods the first one is universally accepted method used all over the world but there has
been no consensus amount among the trade unions on that in India.
The Second National Commission of Labour (2003) considered the issues seriously and made the
following recommendations:
1. We recommend that the negotiating agent should be selected for recognition on the basis of the
check off system. A union with 66% membership be entitled to be accepted as the single negotiating
agent, and if no union has 66% support, then unions that have the support of more than 25% should be
given proportionate representation on the negotiating college.
2. Secret ballot is logically and financially a difficult process in certain industries. Check-off system has
the advantage of ascertaining the relative strength of trade unions. Check-off system should be made
compulsory for all establishments employing 300 or more workers. For establishments employing less
than 300 workers also the check-off system would be the preferred mode. Recognition once granted,
should be valid for a period of four years, to be coterminous with the period of settlement.
opportunity for understanding and mutual appreciation and thus, provides opportunity for a matured
employer union relationship.
Measures to minimise union rivalry: In view of the evil effects of inter-union rivalry and the problem of
formation of one union in one industry, it may be necessary to consider the recommendations of National
Commission on Labour, 1969. The recommendations of NCL to minimise union rivalry are:
1.
Elimination of party politics and outsiders through building up of internal leaders;
2.
Promotion of collective bargaining through recognition of sole bargaining agents;
3.
Improving the system of union recognition;
4.
Encouraging union security; and
5.
Empowering labour courts to settle inter-union disputes if they are not settled within the
organisation.
b. Multiple unions: Multiple unionism both at the plant and industry levels pose a serious threat to
industrial peace and harmony in India. The situation of multiple unions is said to prevail when two or more
unions in the same plant or industry try to assert rival claims over each other and function with
overlapping jurisdiction. The multiple unions exist due to the existence of craft unions, formations of two
or more unions in the industry. Multiple unionism is not a phenomenon unique to India. It exists even in
advance countries like UK and USA. Multiple unionism affects the industrial relations system both
positively and negatively. It is sometimes desirable for the healthy and democratic health of labour
movement. It encourages a healthy competition and acts as a check to the adoption of undemocratic
practice, authoritative structure and autocratic leadership. However, the negative impacts of multiple
unions dominate the positive impacts. The nature of competition tends to convert itself into a sense of
unfair competition resulting in inter-union rivalry. The rivalry destroys the feeling of mutual trust and
cooperation among leadership. It is a major cause for weakening the Trade Union Movement in India.
Multiple unionism also results in small size of the unions, poor finances, etc.
c. Union Rivalry: The formal basis for Trade Union Organisation is provided by the Indian Trade Union
Act, 1926. The relevant article reads as follows: Any seven or more members of a trade union may be
subscribing their name to the roles of the trade union and by otherwise complying with the provisions of
this act with respect to the registration, apply for registration of the trade union under this Act.
This provision has led to the formation of multiple unions and resulted in interunion rivalry in different
industries. But the inter-union rivalry breaks the very purpose of the trade unions by weakening the
strength of collective bargaining. On the other hand, the existence of a single, strong union not only
protects the employee interests more effectively but also halts the various unproductive activities of the
unions and forces the leaders to concentrate on the strategic issues. Further, it helps to bring about
congenial industrial relations by bringing about a system of orderliness in dealing with the employees and
by facilitating expeditious settlement of disputes.
The state of rivalry between two groups of the same union is said to be inter union rivalry. Inter and intraunion rivalries have been a potent cause of industrial disputes in the country. They are responsible for
weal bargaining power of trade unions in collective bargaining. These rivalries are responsible for slow
growth of trade union movement in the country.
d.
Finance: Sound financial position is an essential ingredient for the effective functioning of trade
unions, because in the process of rendering services or fulfilling their goals, trade unions have to perform
a variety of functions and organise programmes which require enormous financial commitments. Hence, it
is imperative on the part of a trade union to strengthen its financial position.
But it is felt that the income and expenditure of trade unions in India over the years is such, with few
exceptions, that the financial position of the union is generally weak, affecting their functioning. It is
opined that, trade unions could be more effective, if they paid more attention to strengthening their
organisations and achieving higher attention of financial solvency.
The primary source of income to the unions is membership subscription. Their other sources of union
finances are donations, sale of periodicals, etc. The items of expenditure include: allowances to office
bearers, salaries to office, annual convention/meeting expenses, rents, stationery, printing, postage,
telegrams, etc.
Most of the trade unions in India suffer from inadequate funds. This unsound financial position is mostly
due to low membership and low rate of membership fee. Trade Union Act, 1926, prescribed the
membership fee at 25 paise per member per month. But the National Commission on Labour
recommended the increase of rate of membership subscription from 25 paise to Re. 1 in the year 1990.
But the Government did not accept this recommendation.
As the National Commission on Labour observes, an important factor limiting the effective functioning of
unions in our country has been their financial weakness.. In most unions, poor finances are the result of
inadequate membership strength. This in turn, can be traced to the small size of units. In a majority of
unions, the rate of contributions required of members is also small. With a relatively low rte of
unionisation, total funds collected are small. The general picture of finances of unions is disappointing.
e.
Low membership: The average membership figures of each union are quite depressing. In 199293 the average membership figure was 632, a steady fall from 3,594 per union from 1927-28. Because of
their small size, unions suffer from lack of adequate funds and find it difficult to engage the services of
experts to aid and advise members in times of need. They cant bargain with the employer effectively on
their own.
f.
Heterogeneous nature of labour: Since workers come to the factory with varying backgrounds, it
is difficult for them to put a joint front in case of trouble. Employers exploit the situation, under the
circumstances, by dividing workers on the basis of race, religion, language, caste, etc.
g.
Lack of Interest: For a large majority of workers, unionism even today remains a foreign issue. In
fact, workers avoid union activities out of sheer disinterestedness. Those who become part of the union,
do not also participate in the union work enthusiastically. In such a scenario, it is not surprising to find
outside political leaders exploiting the situation serve their own personal agenda.
h.
Absence of paid office bearers: Weak finances do not permit unions to engage the services of full
time, paid office bearers. Union activists, who work on a part time basis, neither have the time nor the
energy to take up union activities sincerely and diligently.
i.
Other problems: The other factors responsible for the unsound functioning of trade unions in
India are:
1. Illiteracy:Workers in India fail to understand the implications of modern trade unionism. Their illiteracy
coupled with ignorance and indifference account for the predominance of outside leadership.
2. Uneven growth: Trade unionism activities are, more or less, confined to major metros in India and
traceable only in large scale units (especially cotton textile. The membership fees should be raised as the
amount of wages of the workers increased significantly, compared to the situation in 1926 when Trade
Union Act provided for the collection of 25 paise per month per member as subscription fee. Even
amended Rs.l/- is not sufficient. Some other source of finance may also explored to make trade union
financially healthy.
Other Measures
Trade unions should extend welfare measures to the members and actively pursue social responsibilities. Social
responsibility of Trade Unions should go beyond their limited constituency within members only.
The Trade Union Act, 1926 should be amended and the number of members required to form a trade union should be
increased from 7 to 50% of the employees of an organisation. Similarly, the scope for the outside leadership should
be reduced from 50% to about 10%. The membership subscription should be enhanced from 25 paise to 1 % of the
monthly wage of the worker.
Trade Unions should make efforts to raise their declining membership which is world over phenomenon.
Declining Membership
Country Membership % Decline membership
and year and year
Japan 50% in 1950 25% in 1991
U.S.A 30% in 1959 16% in 1989
Trade Union must broaden their base membership in unorganised sectors, which constitute about 92% of workforce
and IT sectors/BPO/Call Centres where mostof the employment is coming attracting and retaining new bread of
workers by monitoring them.
Trade Unions should be smart, IT savvy on-line working to have connectivity to employees abroad
as also International Trade Unions and other Trade bodies.
Trade Unions have to adapt to new realities in new business environment. The simple notion of
solidarity is now outdated, a narrow concept to encompass the mutual support of those whose positions
and interests are different. (Zoll - 1996). Solidarity concept is getting diluted because of diversities in
work force and increasing individualization industry). The degree of unionism also varies from industry to
industry, varying between to 30-70 per cent in coal, cotton textiles, iron and steel, tobacco, railways,
cement, banking, insurance, ports and docks, etc. The degree of unionism is quite negligible in the
agricultural and unorganised sector.
Measures to strengthen Trade Union Movement in India
The following are some of the measures to minimise trade union problems and to strengthen the Trade
Union Movement of India.
a)
United Labour Front
Unions must put a joint front. Splinter groups multiple unions dissipate their energies, dilute their power
and reduce their effectiveness. Trade unions should form a sort of labour party and all the trade unions in
the country should be affiliated to it. It givesadequate strength to the trade unions both industry and
Parliament.
b)
Efficient Leadership
Outside political leadership has developed due to the absence of internal leadership. Outside leadership
is the main cause for the multiple problems of the trade unions.These problems can be eradicated
through the development of leadership talents from within. Management should encourage internal
workers to lead their own movement. Management and trade unions should provide educational and
training facilities for the development of internal leadership.
c)
c) Membership Fees
In order to make members updated Trade unions must organise continuous training and developmental
programmes. Future needs smart and responsive TradeUnions, if they have to survive and thrive.
d)
The Trade Union Act should be amended in order to avoid dual membership.
e)
There should be legal provision for the recognition of the representative union.
f)
Unions should not intervene in day-to-day matters. They must focus on important issues affecting
workers.
There was a time when unions and strikes were known only to Blue-collar workers in factories, mines,
railways docks, etc. White-collar employees and professional people like doctors, engineers, lawyers,
professors and senior executives and managerial staff thought it below their dignity to band themselves in
unions, march the high streets, and yell slogans. Today it is different. Trade unions exist among most
professionals, whitecollar employees, officers, senior executives, and managers, and so do strikes and
gheraos. Highly paid employees in banks, in the Life Insurance Corporation and in many other
establishments are organised, and so the Central Government and semi-government employees. They
take recourse to strikes, mass casual leaves, work to rule, dharnas, and gheraos for securing their
demand and thus creating some embarrassing problems for their employers/managements requiring
serious consideration.
Both blue and white-collar workers are employees, but are of different status, and holding different
positions at different levels. The differences between these two categories of unions are as summarised
in the Table below.
s.
No.
1
Blue-Collar Worker
They are manual workers with lower literacyThey are non-manual workers forming a distinct
and education, and have their own social social ground characterised by divergent socioand economic background.
economic backgrounds, level of education, manner
of speech, social custom and ideology. They are
better educated and have jobs requiring mental
capabilities to a greater extent.
All shop-floor workers (Pari of production All clerical or office staff who do not work on the
system who operate machines and related shop floor, are termed as white-collar workers as
systems) are termed as blue-collar workers, their work and working places are clean. They are
as their work is not generally clean.
generally involved in a desk job or providing service
over the counter.
Employees Association and National Union of Bank Employees, they do not sacrifice the interests of their
members for some political gains.
8. Lastly, some of the white-collar employees may be outside the purview of the Industrial Disputes Act,
1947, and so may have the problem of job security which their unions may have to look after. This may
not be the problem with Blue-collar Unions as their members are almost covered by the I.D. Act, 1947.
9. Inconsistent and discriminatory promotion and salary policies which have been causing so many
conflicts and disputes.
10. Gradual narrowing of wages and salaries differentials of blue and white-collar workers due to fast
improvement in the wages and fringe benefits of the former organization account of their union activities,
and so causing feeling of deprivation among white-collar workers.
11. Inflation and soaring prices resulting in erosion of pay and standard living of whitecollar workers, and
thus leading to demand for higher pay, dearness allowance and annual bonus and other fringe benefits. It
is because of unions of the Government employees and public sectors undertakings who had been
excluded from the purview of the Payment of Bonus Act, 1965, enabled them to receive now annual
bonus worked out on the basis provided under this Act.
Distinguishing Features of White-Collar Unions
There are some noteworthy features of unions of white-collar workers which distinguish them from that of
the blue-collar unions as stated briefly below:
a) Managerial Association
Managerial trade unionism is no longer a fiction, but is an established fact. Though this phenomenon is
more than forty years old, it is yet to be considered as worthwhile to be concerned with either by the
Government, or by the central bodies of trade unions, or by academicians. The Government could not
enact a legislation concerning this aspect of trade unionism, or could not introduce some procedure for
redressal of grievances of the managerial staff. The Central orgnisations of trade unions could have
provided leadership or guidance for proper organisation of such unions. The academicians, if they had
wished, could have attempted an in-depth study of managerial unionism and workshops. It is only the
corporate managements who could not ignore this happening. In fact they are finding it difficult to develop
working relations with their managers and other officers in the absence of any corporate or national policy
on this subject.
b) Nature of Managerial Association
Hardly any organisation of managerial employees is a union. They are known as Officers associations
registered either under the Societies Registration Act, 1860, or under the Trade Unions Act, 1926. The
officers do not like their association to be equated with a trade union, though many of their organisations
are registered under the Trade Unions Act, 1927. Some cases are also reported to be pending in the
Courts, wherein the officers of certain oranisations are claiming that they are not managers but workmen,
and they should be given protection under the provisions of the Industrial Disputes Act, 1947. The
purpose of managerial unions is not very much different from that of other trade unions for employees at
different but lower levels in the hierarchy. The means and strategies may differ in the sense that the
managerial unions are relatively soft in their wheelings and dealings than most of the blue-collar unions.
Employer-Employee The officers eligible for membership of such associations are below the level of
Relations
Director. They may be from the rank of trainees and upward up to the rank of Deputy General Manager,
and in some cases even the General Manager. It is the junior and middle level managers who provide
leadership of these associations. These officers rise from the ranks, and as members of the nonexecutive cadre they may have had prolonged experience as members of trade unions, if not, as officebearers.
In India, Managerial unionism is more in public sector than in private sector. Its lesser development in
private sector may be due to the fact that most of the organisations in this sector are usually small, and,
therefore, they are free from the cold and impersonal atmosphere usually found in large bureaucratic
organisations. In small organisations the problems and difficulties of the officers do not remain
unattended. Such individualised attention is supposed to be missing in big public sector establishments.
The other possible reason for slower growth of managerial trade unions in private sector may be that
there employers are not willing to permit their officers to combine and form unions of their own.
The emergence of Officers Associations in the public sector is relatively a new happening, whereas these
associations have existed in the banking industry and insurance companies for a fairly long time. In
Western Europe officers are organised in almost all countries, and there also it predominates in the public
sector. There the formation of such unions have been facilitated by the fact that demarcation between a
workman and non-workman is not so rigid as in India, and there trade unions are also not so apathetic
towards officers association as they are here in India. In fact there the unions want to bring officers unions
under the banner of the existing trade unions.
Why Managerial Association
i) Feeling of relative deprivation has been an important reasons for the officers/ managers to organise
themselves and form their associations for obtaining fair deal from their managements. There has been a
feeling that as compared to unionised cadre of workmen and lower staff they have been getting a raw
deal. They complain about narrowing wage differentials generally. It is after the management had
negotiated a settlement with the unionised staff and a settlement is arrived at, the ad hoc increase in
emoluments is given to them unilaterally, which is usually less than the increase given emoluments of the
junior officers and the wages of the senior workmen.
ii) Feeling of insecurity is another reason for the growth of officers unions. They do not have that
enormous protection under the Industrial Disputes Act, 1947, which is enjoyed by the employees covered
by this Act. They are left high and dry to fend for themselves. This has made them to realise the message
of unit and organise to protect the interest of their membership through collective bargaining, a strategy
of which efficacy has been demonstrated amply by the workmen and staff unions.
iii) Growing harassment of managerial staff by their subordinates: The authority of the managers has
been grossly eroded by the unionised workmen and staff. They are making it difficult for the managers to
take work from them by being emboldened by the support from their union and protection they enjoy from
labour legislation. Under pressure of the unionised staff top management often fails to provide the
required support to junior and middle level managers. Even whenever they are assaulted by the
workmen, the matters are hushed up for maintaining industrial peace. Managerial unions have been
formed to pressurise top management to provide necessary protection against such harassment.
iv) To be a Third Force between the Working Class and the Management: Being denied the protection
of labour laws, and as well as of the privilege of a real manager, the junior and middle level managers
have gone for the only option left to them, that
is, the formation of the Officers Association. They would not like to be considered as part and parcel of
either of the working class or the management, but as a third force between these two groups.
Employers Association
Employers Organisations (EOs) are formal groups of employers set up to defend, represent or advise
affiliated employers and to strengthen their position in society at large with respect to labour matters as
distinct from economic matters. They may conclude collective agreements but this is not a formal rule and
cannot be an element of their definition. Unlike trade unions, which are composed of individual persons,
employers organisations are composed of enterprises. Most legal definitions of a trade union apply to
them. (Oechslin, 1990). The Trade Unions Act, 1926 includes in its purview, both associations of workers
as well as employers.
EOs are mainly concerned with matters relating to a wide range of employment issues including industrial
relations. Chambers of Commerce are usually set up to defend the economic interests of employers.
However, in some countries such as the U.K., Norway and Jordan, for instance, the same organisation
deals with both. In India, as we shall discuss latter, the former are set up by the latter. Also, sectoral
associations such as Confederation of Indian Industry (till 1991 it was a sectoral association mainly
confined to engineering industry) and United Planters Association of south Indian perform a combined
role defending the interest of employers in both economic and labour matters.
Employers Associations came into existence as a result of the formation of ILO and the growing presence
of Trade Unions, especially after the First World War. The Royal Commission on Labour, 1929,
recommended that the Indian employers need and some other factors which influenced the formation of
unions of managers, senior executives and other officers, are nationalisation and rationalisation of pay
and perquisites, and anomalies in pay arising from the recommendations of Pay Commissions and Wage
Boards and their implementation.
Objectives of EOs
The main objectives of EOs are similar though they may vary to an extent in matter of detail.
For organisations to deal with labour problems from the employers point of view. As rightly pointed out
by Mr. Naval Tata, employers organisations are required to:
l Develop healthy and stable industrial relations; l Promote collective bargaining at different levels; l Bring
a unified employers viewpoint on the issues of industrial relations to the
government in a concerted manner; and l Represent in the meetings of ILC and SLC boards in conformity
with tripartite approach to labour matter. Employers Associations are formed to promote and protect
interests of employers in Trade and industry. They are: formal groups of employers set up to defend,
represent or advise affiliated employers. They perform several important functions:
Primary Objectives
a. Promote and protect the interest of employers engaged in industry, trade and commerce in India.
b. Study, analyse and disseminate information relating to labour policy, labour management relations,
collective bargaining, etc.
c. Offer advice concerning various aspects of labour policy.
d. Liaise with Union Government and initiate steps that are representative and legislative in nature.
Secondary Objectives
a. Train and develop staff and members.
b. Obtain data on wages and conditions of work in industries attached to them. Come out with surveys,
research-based reports on issues of importance to both labour and management.
c. Take up projects for social and family welfare.
d. Deal with safety and health at work place and working environment.
e. Initiate steps to improve public image and improve public relations.
f. Educate the public regarding the character, scope, importance and needs of trade, industry and
commerce represented by members.
Structure of EOs
At present EOs are organised at three levels:
a) Local Organisations: They serve the interests of local businessmen. The Bombay Mill Owners
Association, for example, has been formed to protect the local interests of manufacturing units operating
within the city. Such bodies operate through the local chambers of commerce.
b) Regional Organisations: The regional outfits such as Employers Federation to South India,
EmployersAssociation, Calcutta are affiliated to central employers organisation. They offer consultancy
service; take care of training, safety and welfare measures on behalf of their members. They even have
special committees for specific region or industry related problems.
c) Central Organisations: AIDE, EFI, AlMO operated as apex bodies governing the affairs of several
regional, local associations. To have better coordination a super structure called the Council of Indian
Employers was formed in 1956, bringing AIDE and EFI under one umbrella.
Different EOs in India
AlOE: The All India Organisation of Employers is a unitary type of organisation, setup in 1953; members
hail from manufacturing, banking, insurance, commercial establishments; and has no sub-organisation on
an industrial or geographical basis. The President is elected every year.
EFI: The Employers Federation of India has a federal structure formed in 1933, it has governing body
executive committee and the secretariat. The governing body formulates policies, the executive
committee implements policies and the secretariat with its own permanent staff is responsible for carrying
out the decisions of the governing body. It had only four presidents in over 50 years. EFI was registered
as a trade union in 1963 under the Indian Trade Unions Act of 1926.
IOE: International Organisation of Employers, represents the interests of employers in all social and
labour matters at the international level. Founded in 1920 with headquarters in Geneva, it has a
membership of Employers Associations from over 100 countries. The Central Council of Indian
Employers is a matter of IDE.
SCOPE: The objectives of the Standing Conference of Public Enterprises cover a wider ambit. SCOPE
looks upon its tasks as both internal and external to the public sector. Internally, it would endeavour to
assist the public sector in such ways as would help improve its total performance. Externally, it would help
improve its total boundary role in conveying such information and assist the public sector in such ways as
would help improve its total performance and advice to the community and the Government as would
unions, permit the registration of unions and associations formed by any seven workers/persons. The
registered trade unions are protected, civil and criminal proceedings for bona fide trade union activities,
including peaceful strike and picketing. The Trade Unions Act only provide for the right to organise, but
not the right to bargain collectively, as there is no provision in the Act for the recognition of unions by the
employers. Only Bombay Industrial Relations Act, 1946 which has been adopted in Rajasthan and
Madhya Pradesh and is application in Maharasthra, provides for compulsory recognition of unions as
bargaining agent. This is a serious lacuna in our industrial relations system, which must be removed at
the earliest, if union and management relations are to be improved.
Apart from the limited protection afforded by the two enactments as mentioned above, managerial and
administrative employees and other officers have no other statutory protection or benefit except what is
provided by the Civil and Common Law. They have neither the job security nor the arrangement for quick
recovery of their dues, which the workmen or the blue-collar workers have as provided by the Industrial
Disputes Act, 1947 and the Payment of Wages Act, 1936. Most of the Indian organisations have some
sort of grievance handling procedure to take care of the grievances of the workmen, but no such
procedure exists for the executives or officers. Such a discriminatory treatment and the fact that revision
of salaries of managerial staff has always to wait till the wages of workers are revised by collective
bargaining, has compelled the former to form their own unions and agitate for improvement and security
of their jobs and emoluments.
It is not that the Government has never thought about the situation of the Managerial employees. On
August 30, 1978 the Janata Government introduced in the Lok Sabha Bill (No.143 of 1978), called the
Employment Security and Miscellaneous Provisions (Managerial Employees) Bill, to provide the security
of employment to persons not covered by the Industrial Disputes Act, 1947. If this Bill had been enacted,
it would have enabled a managerial employee to approach, Employment Security Tribunal for:
a) setting aside termination of his employment or a notice of such termination issued by his employer,
b) reliefs if the employer affected reduction in rank, salary or allowances, and
c) recovery of amounts due to him from the employer.
On behalf of the three organisations, the CIE also submits representations to the Government of India on
matters involving important issues of labour policy on which a common approach is desired.
Under the Constitution of the ILO, its member countries (India is a member of the ILO since its inception
in 1919) should accord recognition to the most representative organisations of unions an employers. CIE
is the organisation which represents the Indian employers.
Organisation and Management of EOs in India Membership: As in most countries in India too
membership in EOs is voluntary. AlOE has two categories of members: individual (enterprise) and
association (group of enterprises). EFI additionally has provision for honorary membership whereby
individuals with special skill or experience, such as legal luminaries or professionals are coopted to serve
on various committees of the federation. While the predominantly private sector EOs do not bar public
sector enterprises becoming members and rather welcome their entry and indeed have a few, the SCOPE
remains an EO exclusively for the public sector that too mainly the public sector enterprises in the central
sphere.
648 EOs were registered in 1986 under the Trade Unions Act. Of these, however, only 98 submitted
returns. Several more were registered under the Companies Act and the Societies Act whose number is
not known. The definition of an EO under these three legal forms is much wider than the meaning
assigned to EO in the ILO parlance and inclue industry associations, chambers of commerce, etc., at
various levels including national, regional, state, local, etc.
In 1986, the AlOE and the EFI had 59 and 31 association members respectively; even the strength of
individual members (enterprises) was low at 130 and 247 respectively. Some members in both the
categories are common for the AlOE and the EFI. The representative character of the AlOE and the EFI.
Even with regard to the large industry, is thus rather limited. The SCOPE, on the other hand, is the most
representative organisation for the public enterprises in Central sphere (i.e., those established by the
Union Government) with over 95 per cent of them being members of the SCOPE.
Organisation Structure: The AlOE has a unitary type of organisation. It has no suborganisation on an
industrial or geographical basis. Even though there are important clusters of members in Calcutta and
Bombay, there has been no attempt to create local committees or offices. The EFI, however, has federal
type of organisation structure with its activities distributed over a central body and the regional
committees. Both the AlOE and the EFI have a governing body, executive committee and the secretariat.
The governing body is the supreme policy-making body, the executive committee is responsible for
implementing the policies and objectives of the organisation and the secretariat with a permanent staff, is
responsible for carrying out the decisions of the bargaining. In India this role is voluntary and at the
initiative and request of the members; training and development of staff and members; safety and health
at workplace and working environment; and public image and public relations.
The above list is indicative and not exhaustive. A survey of members of EOs in India (Venkata Ratnam,
1989, pp. 112-113) noted that over 70 per cent of the respondent members of EOs believe that EOs: (a)
are active in disseminating information to members and making representations whenever an issue or
problem arises; henceforth need to be proactive; (b) are not going as well as they should be doing in their
advisory role and in providing a guidance on issues relating to collective bargaining,
etc.; (c) should pay more attention to: (i) studying problems of concern to employers; (ii) improving their
interaction with members, unions and government; (iii) concentrating on training workers and members;
(iv) strengthening advisory services;
(v) taking up projects for social and family welfare; and (d) need not participate; as before, directly in
enterprise level negotiations or settlement of industrial disputes at firm level.
Relations: In the course of exercise of their functions, EOs interact with the three principal actors; i.e.,
employers (who are their members), Government and unions. Traditionally employers are individualistic in
nature and competitive consideration affect their ability to confederate as a cohesive entity. Employers
want individual discretion than take a collective, unified stand for a good policy. This attitude influenced
their orientation towards relations with governments. Individual office bearers would like to cultivate
personalised relations with government functionaries than institutionalise the interactions. The relations
with unions are typically adversarial and occasional interactions but not usually founded on the realisation
of the importance of a continuous dialogue and discussion to develop rapport, mutuality, trust and
confidence in each other.
EOs also interact with political parties, professional organisations and the community. Relations with
political parties assume significance even if EOs choose to remain avowedly a political. The presence of
professional organisations make it imperative to see whether these organisations of managers are similar
or dissimilar to those of employers. In todays context of large, modem corporations, the employers
dependence on professional manager had increased. Likewise the professionals and professional bodies
do draw their sustenance, to an extent, from employers. The EOs also need to maintain relations with the
community.
Future Challenges of EOs
Employers are not only individualistic, but also not a homogeneous class. The conflict of Swadeshi vs.
Videshi in pre-independent era, the public-private debate in post-independence era, the rivalry between
ASSOCHAM and FICCI, AIMOs dislike towards the big brother attitude of major chambers of commerce,
the conflict among handloom, powerloom and mill sector in textile industry, the formal-informal sector
divide and the like exemplify that employers are not necessarily a homogeneous class. EOs need to
governing body. There is greater continuity in the leadership of the EFI than the AlOE.
The EFI had only four presidents in over 50 years. The AlOE which used to elect a new president every
two years is now electing a new president every year. The EFI constitution provides for setting special
technical committees if need arises to provide special attention on any subject.
The SCOPE has two administrative organs, the Governing Council and the Executive Board besides the
Secretariat with permanent staff. The Governing council lays down policy and elects office-bearers, the
Executive Board oversees implementing of policies. The chief Executive of a member
enterprise/organisation shall automatically be a member of the Governing Council. Additionally it has
three government representatives nominated by the Director-General, Department of Public Enterprises,
as ex-officio members of the Governing Council with full voting rights.
Finances: EOs are referred to as rich mens poor clubs. The EFIs balance sheet for 1985-86 shoes an
income of Rs.20 lakhs and that of AlOE Rs.5 lakhs approximately. Nearly half of the income of the EFI
and one-fourth of the income of the AlOE are from membership subscriptions. Other incomes include
interest on corpus/deposits, conferences, publications, etc. Excessive dependence on income from
subscription make EOs financially vulnerable. The surest way for them to raise funds is to upgrade
the quality, relevance and usefulness of services to their members and other constituents, including the
community.
Representation: EOs in India play two types of roles in representing the interests of their members: One,
they are called to nominate representatives of employers in voluntary or statutory bodies set up not only
to determine wages and conditions of employment of workers in a particular industry/sector, but also for
consultation and cooperation on social and labour matters in national and global context. Secondly, they
seek to redress the grievances arising from legislative or other measures by making submissions to
concerned authorities. It is difficult to recapitulate and synthesise the role played by EOs in representing
the interests of employers in the ILO, various committees/institutions, bipartite and tripartite for at the
national level and on various issues such as legislation, voluntary codes, social security, bonus, etc. (For
an indicative analysis, see Venkata Ratnam, 1989).
Services: The real worth of an EO and the best justification for its support is the range of services that it
provides to its members. Within the overall framework of the need to develop enlightened human
resource management practices, the kind and range of services that an EO could provide should rest
mainly on the needs of the members and their priorities as also the resources and competence within the
leadership and secretariat of the EO. Some of the basic services very EO may be expected to provide the
following: study and analysis of problems and dissemination of information advice, advocacy and dispute
settlement; guidance or conduct of collective reconcile the concept of a federation with the spirit of
competition among their members. EOs work may concentrate on areas where members interest
converge. They need to overcome the crisis of being the rich mens poor clubs by upgrading the quality,
relevance, usefulness and cost-effectiveness of their services. They should learn to be proactive than
reactive. The distinction between the reactive and proactive approaches may be described as the
difference between settling disputes and taking preventive care, between raising demands and removing
grievances, seeking amendments to the law and influencing the law in advance, controlling wages and
providing incentive, enforcing discipline and promoting good relations.
EOs should also reflect on the emerging challenges and redefine their role in a rapidly changing scenario.
For instance the spread of democracy and the transition to free market economy in most countries the
world over rendered old notions of ideological class conflict less relevant today. The gradual shift towards
information technology society requires reorientation in the basic philosophy of human resource
management policies, technological, structural, economic and other changes which require adaption and
adjustment with a human face. These, then, are some of the new opportunities and challenges for EOs.
Evaluation of EOs
EOs have remained disparate groups, passing resolutions, airing grievances from various platforms. EOs
relations with Government have remined individualistic in nature. They were keen to have personalised
relations with Government functionaries instead of presenting unified stand for the common benefit of all
constituent groups. The relations with unions were also far from satisfactory. The focus was not on having
an open dialogue on issues affecting the lives of both the employer and employee. Naturally, the
occasional interactions between the two groups remained adversarial.
Employers were never a homogeneous class. The reasons for this conclusion are fairly obvious: the
conflict between Swadeshi and Videshi in pre-independence era; the public and private ownership debate
in post-liberalisation era, the on-going rivalry and battles between ASSOCHAM, ElMO and FICCI - all
these prove the point clearly.
Unless they present a unified front, maintain cordial relations among all constituent groups and learn to
address the conflicting issues head-on, it will not be possible to achieve the ends that EOs have adopted
over the years. They have many dilemmas and challenges. The technological, structural, economic and
social changes have altogether transformed the lives of corporation in a dramatic way, especially after the
90s. The constituent parts of EOs (their members, unions, government, public at large) must realise the
futility of carrying the age-old clash-conflict ideology into the 21st century. The free market forces have
hanged the rules of the game completely. Unless the EOs understand and adjust to such challenges and
dilemmas (such as technological, structural, economic, social, etc.) in a smooth way, they would be falling
behind.
They should learn to be proactive than reactive. The distinction between the reactive and proactive
approaches may be described as the difference between settling disputes and preventive care, between
raising demands and removing grievances, seeking amendments to the law and influencing the law in
advance, controlling wages and providing incentives, enforcing discipline and promoting good relations.
Performance appraisal
a) What is Performance?
What does the term performance actually mean? Employees are performing well when they are
productive. Productivity implies both concern for effectiveness and efficiency, effectiveness refers to goal
accomplishment. However it does not speak of the costs incurred in reaching the goal. That is where
efficiency comes in. Efficiency evaluates the ratio of inputs consumed to outputs achieved. The greater
the output for a given input, the greater the efficiency. It is not desirable to have objective measures of
productivity such as hard data on effectiveness, number of units produced, or percent of crimes solved
etc and hard data on efficiency (average cost per unit or ratio of sales volume to number of calls made
etc.).
In addition to productivity as measured in terms of effectiveness and efficiency, performance also includes
personnel data such as measures of accidents, turnover, absences, and tardiness. That is a good
employee is one who not only performs well in terms of productivity but also minimizes problems for the
organisation by being to work on time, by not missing days, and by minimizing the number of work-related
accidents.
b) What is Appraisal?
Appraisals are judgments of the characteristics, traits and performance of others. On the basis of these
judgments we assess the worth or value of others and identify what is good or bad. In industry
performance appraisal is a systematic evaluation of employees by supervisors. Employees also wish to
know their position in the organization. Appraisals are essential for making many administrative decisions:
selection, training, promotion, transfer, wage and salary administration etc. Besides they aid in personnel
research.
Performance Appraisal thus is a systematic and objective way of judging the relative worth of ability of an
employee in performing his task. Performance appraisal helps to identify those who are performing their
assigned tasks well and those who are not and the reasons for such performance.
Performance appraisal
"Process by which a manager or consultant (1) examines and evaluates an employee's work behavior by
comparing it with preset standards, (2) documents the results of the comparison, and (3) uses the results
to provide feedback to the employee to show where improvements are needed and why. Performance
appraisals are employed to determine who needs what training, and who will be promoted, demoted,
retained, or fired."-------- businessdictionary.com
Definitions:
Performance appraisal has been defined by different scholars in various ways. Some of the important
definitions are as follows:
1. Dale S. Beach, "Performance appraisal is systematic evaluation of the individual with respect to his
or her performance on the job and his or her potential for development".
2. Randall S. Schuler, "Performance appraisal is a formal, structured system of measuring and
evaluating an employees job, related behaviour and outcomes to discover how and why the employee is
presently perfuming on the job and how the employee can perform more effectively in the future so that
the employee, organisation, and society all benefit."
3. Heyel, "It is the process of evaluating the performance and qualifications of the employees in terms
of the requirements of the job for which he is employed, for purposes of administration including
placement, selection for promotions, providing financial rewards and other actions which require
differential treatment among the members of a group as distinguished from actions affecting all members
equally."
4. Dale Yoder, ''Performance appraisal includes all formal procedures used to evaluated personalities
and contributions and potentials of group members in a working organisation. It is a continuous process
to secure information necessary for making correct and objective decisions on employees."
checklist of Dos and Donts. Performance evaluation should serve as a vital component, one that is of
interest to both the organization and the employee. From the organizational perspective, sound
performance appraisals can ensure that correct work is being done, work that assists in meeting
department goals simply put. Each employees work should support the activities needed to action his or
her supervisors performance objectives. This should ultimately continue up the hierarchy, with all efforts
supporting corporate strategic goals. From the employee perspective, properly operating performance
appraisal systems provide a clear communication of work expectations. Knowing what is expected is a
first step in helping one to cope better with the stress usually associated with a lack of clear direction.
Secondly, properly
designed performance appraisals should also serve as a means of assisting an employees personal
development. To make effective performance appraisals a reality, four criteria need to be present.
These are:
Employees should be actively involved in the evaluation and development process.
Supervisors need to enter performance appraisals with a constructive and helpful attitude.
Realistic goals must be mutually set.
Supervisors must be aware, and have knowledge of the employees job and performance.
The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards set.
The result can show the actual performance being more than the desired performance or,
the actual performance being less than the desired performance depicting a negative
deviation in the organizational performance. It includes recalling, evaluating and analysis of
data related to the employees performance.
DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on one-toone basis. The focus of this discussion is on communication and listening. The results, the
problems and the possible solutions are discussed with the aim of problem solving and
reaching consensus. The feedback should be given with a positive attitude as this can have
an effect on the employees future performance. The purpose of the meeting should be to
solve the problems faced and motivate the employees to perform better.
DECISION MAKING
The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR
decisions like rewards, promotions, demotions, transfers etc.
objectives. The standards set should be clear, easily understandable and in measurable
terms. In case the performance of the employee cannot be measured, great care should be
taken to describe the standards.
COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to communicate the standards to all the
employees of the organization.
The employees should be informed and the standards should be clearly explained to the.
This will help them to understand their roles and to know what exactly is expected from
them. The standards should also be communicated to the appraisers or the evaluators and if
required, the standards can also be modified at this stage itself according to the relevant
feedback from the employees or the evaluators.
MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the specified
period of time. It is a continuous process which involves monitoring the performance
throughout the year. This stage requires the careful selection of the appropriate techniques
of measurement, taking care that personal bias does not affect the outcome of the process
and providing assistance rather than interfering in an employees work.
COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE
The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards set.
The result can show the actual performance being more than the desired performance or,
the actual performance being less than the desired performance depicting a negative
deviation in the organizational performance. It includes recalling, evaluating and analysis of
data related to the employees performance.
DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on one-toone basis. The focus of this discussion is on communication and listening. The results, the
problems and the possible solutions are discussed with the aim of problem solving and
reaching consensus. The feedback should be given with a positive attitude as this can have
an effect on the employees future performance. The purpose of the meeting should be to
solve the problems faced and motivate the employees to perform better.
DECISION MAKING
The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR
decisions like rewards, promotions, demotions, transfers etc.
explanation for his rating. While preparing the essay on the employee, the rater considers
the following factors: (i) Job knowledge and potential of the employee; (ii) Employees
understanding of the companys programmes, policies, objectives, etc.; (iii) The employees
relations with co-workers and superiors; (iv) The employees general planning, organizing
and controlling ability; (v) The attitudes and perceptions of the employee, in general.
Essay evaluation is a non-quantitative technique. This method is advantageous in at least
one sense, i.e., the essay provides a good deal of information about the employee and also
reveals more about the evaluator. The essay evaluation method however, suffers from the
following limitations:
It is highly subjective; the supervisor may write a biased essay. The employees who are
sycophants will be evaluated more favorably then other employees.
Some evaluators may be poor in writing essays on employee performance. Others may be
superficial in explanation and use flowery language which may not reflect the actual
performance of the employee. It is very difficult to find effective writers nowadays.
The appraiser is required to find time to prepare the essay. A busy appraiser may write the
essay hurriedly without properly assessing the actual performance of the worker. On the
other hand, appraiser takes a long time, this becomes uneconomical from the view point of
the firm, because the time of the evaluator (supervisor) is costly.
2. STRAIGHT RANKING METHOD
This is one of the oldest and simplest techniques of performance appraisal. In this method,
the appraiser ranks the employees from the best to the poorest on the basis of their overall
performance. It is quite useful for a comparative evaluation.
3. PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this method compares
each employee with all others in the group, one at a time. After all the comparisons on the
basis of the overall comparisons, the employees are given the final rankings.
4. CRITICAL INCIDENTS METHODS
I Under this method, the manager prepares lists of statements of very effective and
ineffective behavior of an employee. These critical incidents or events represent the
outstanding or poor behavior of employees on the job. The manager maintains logs on
each employee, whereby he periodically records critical incidents of the workers behavior.
At the end of the rating period, these recorded critical incidents are used in the evaluation
of the workers performance. An example of a good critical incident of a sales assistant is
the following:
July 20 The sales clerk patiently attended to the customers complaint. He is polite,
prompt, enthusiastic in solving the customers problem.
On the other hand the bad critical incident may appear as under:
July 20 The sales assistant stayed 45 minutes over on his break during the busiest part
of the day. He failed to answer the store managers call thrice. He is lazy, negligent,
stubborn and uninterested in work.
This method provides an objective basis for conducting a thorough discussion of an
employees performance. This method avoids recency bias (most recent incidents get too
much emphasis). This method suffers however from the following limitations:
Negative incidents may be more noticeable than positive incidents.
The supervisors have a tendency to unload a series of complaints about incidents during an
annual performance review session.
It results in very close supervision which may not be liked by the employee.
The recording of incidents may be a chore for the manager concerned, who may be too
busy or forget to do it.
5. FIELD REVIEW
In this method, a senior member of the HR department or a training officer discusses and
interviews the supervisors to evaluate and rate their respective subordinates. A major
drawback of this method is that it is a very time consuming method. But this method helps
to reduce the superiors personal bias.
6. CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behaviour of the employees on job.
The checklist contains a list of statements on the basis of which the rater describes the on
the job performance of the employees.
Another simple type of individual evaluation method is the checklist. A checklist
represents, in its simplest form, a set of objectives or descriptive statements about the
employee and his behavior. If the rater believes strongly that the employee possesses a
particular listed trait, he checks the item; otherwise, he leaves the item blank. A more
recent variation of the checklist method is the weighted list. Under this, the value of each
question may be weighted equally or certain questions may be weighted more heavily than
others. The following are some of the sample questions in the checklist.
Is the employee really interested in the task assigned? Yes/No
Is he respected by his colleagues (co-workers)
Yes/No
Does he give respect to his superiors?
Yes/No
Does he follow instructions properly?
Yes/No
Does he make mistakes frequently?
Yes/No
7. GRAPHIC RATING SCALE
In this method, an employees quality and quantity of work is assessed in a graphic scale
indicating different degrees of a particular trait. The factors taken into consideration include
both the personal characteristics and characteristics related to the on-the-job performance
of the employees. For example a trait like Job Knowledge may be judged on the range of
average, above average, outstanding or unsatisfactory.
8. FORCED DISTRIBUTION
To eliminate the element of bias from the raters ratings, the evaluator is asked to distribute
the employees in some fixed categories of ratings like on a normal distribution curve. The
rater chooses the appropriate fit for the categories on his own discretion.
MANAGEMENT BY OBJECTIVES
The concept of Management by Objectives (MBO) was first given by Peter Drucker in 1954.
It can be defined as a process whereby the employees and the superiors come together to
identify common goals, the employees set their goals to be achieved, the standards to be
taken as the criteria for measurement of their performance and contribution and deciding
the course of action to be followed.
The essence of MBO is participative goal setting, choosing course of actions and decision
making. An important part of the MBO is the measurement and the comparison of the
employees actual performance with the standards set. Ideally, when employees
themselves have been involved with the goal setting and the choosing the course of action
to be followed by them, they are more likely to fulfill their responsibilities.
360 degree respondents for an employee can be his/her peers, managers (i.e.
superior), subordinates, team members, customers, suppliers/ vendors - anyone
who comes into contact with the employee and can provide valuable insights and
information or feedback regarding the on-the-job performance of the
employee.360 degree appraisal has four integral components:
1.
2.
3.
4.
Self appraisal
Superiors appraisal
Subordinates appraisal
Peer appraisal.
Self appraisal gives a chance to the employee to look at his/her strengths and
weaknesses, his achievements, and judge his own performance. Superiors
appraisal forms the traditional part of the 360 degree appraisal where the
employees responsibilities and actual performance is rated by the superior.
Subordinates appraisal gives a chance to judge the employee on the parameters
like communication and motivating abilities, superiors ability to delegate the work,
leadership qualities etc. Also known as internal customers, the correct feedback
given by peers can help to find employees abilities to work in a team, co-operation
and sensitivity towards others.
Self assessment is an indispensable part of 360 degree appraisals and therefore
360 degree Performance appraisal have high employee involvement and also have
the strongest impact on behavior and performance. It provides a "360-degree
review" of the employees performance and is considered to be one of the most
credible performance appraisal methods.
360 degree appraisal is also a powerful developmental tool because when
conducted at regular intervals (say yearly) it helps to keep a track of the changes
others perceptions about the employees. A 360 degree appraisal is generally found
more suitable for the managers as it helps to assess their leadership and managing
styles. This technique is being effectively used across the globe for performance
appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance
Industries etc.
360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal
where the feedback about the employees performance comes from all the sources that come in
contact with the employee on his job. this method is being used in the (MARUTHI SUZUKI and
HCL)
360 degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact
with the employee and can provide valuable insights and information or feedback regarding the
on-the-job performance of the employee.360 degree appraisal has four integral
components:
Self appraisal
Superiors appraisal
Subordinates appraisal
Peer appraisal.
Self-appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his
achievements, and judge his own performance. Superiors appraisal forms the traditional part of
the 360 degree appraisal where the employees responsibilities and actual performance is rated
by the superior.
Subordinates appraisal gives a chance to judge the employee on the parameters like
communication and motivating abilities, superiors ability to delegate the work, leadership
qualities etc. Also known as internal customers, the correct feedback given by peers can help to
find employees abilities to work in a team, co-operation and sensitivity towards others.
Self-assessment is an indispensable part of 360 degree appraisals and therefore 360 degree
Performance appraisal have high employee involvement and also have the strongest impact on
behavior and performance. It provides a "360-degree review" of the employees performance and
is considered to be one of the most credible performance appraisal methods.
360 degree appraisal is also a powerful developmental tool because when conducted at regular
intervals (say yearly) it helps to keep a track of the changes others perceptions about the
employees. A 360 degree appraisal is generally found more suitable for the managers as it helps
to assess their leadership and managing styles. This technique is being effectively used across
the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys,
and Reliance Industries etc.
Advantages of 360 degree appraisal
Offer a more comprehensive view towards the performance of employees.
Improve credibility of performance appraisal.
Such colleagues feedback will help strengthen self-development.
Increases responsibilities of employees to their customers.
The mix of ideas can give a more accurate assessment.
Opinions gathered from lots of staff are sure to be more persuasive.
Not only manager should make assessments on its staff performance but other colleagues should
do, too.
People who undervalue themselves are often motivated by feedback from others.
If more staff takes part in the process of performance appraisal, the organizational culture of the
company will become more honest.
Disadvantages of 360 degree appraisal
Taking a lot of time, and being complex in administration
Extension of exchange feedback can cause troubles and tensions to several staff.
There is requirement for training and important effort in order to achieve efficient working.
It will be very hard to figure out the results.
Feedback can be useless if it is not carefully and smoothly dealt.
Can impose an environment of suspicion if the information is not openly and honestly managed.
Who should conduct 360 degree performance appraisal?
Subordinates.
Peers.
Managers (i.e. superior).
Team members.
Customers.
Suppliers/ vendors.
Anyone who comes into contact with the employee and can provide valuable insights and
information.
Potential Appraisal
The potential appraisal refers to the appraisal i.e. identification of the hidden talents and skills of a
person. The person might or might not be aware of them. Potential appraisal is a future oriented
appraisal whose main objective is to identify and evaluate the potential of the employees to assume
higher positions and responsibilities in the organizational hierarchy. Many organisations consider and use
potential appraisal as a part of the performance appraisal processes.
Potential appraisal can serve the following purposes:
1.
To advise employees about their overall career development and future prospects
2.
Help the organisation to chalk out succession plans
3.
Motivate the employees to further develop their skills and competencies.
4.
To identify the training needs.
Techniques of potential appraisal:
Self appraisals
Peer appraisals
Superior appraisals
MBO
On-the-job Methods
Off-the-job Methods
Training is required at every stage of work and for every person at work. To keep oneself updated with
the fast changing technologies, concepts, values and environment, training plays a vital role. Training
programmes are also necessary in any organisation for improving the quality of work of the employees at
all levels. It is also required when a person is moved from one assignment to another of a different
nature. Taking into account this context, this unit aims at providing insight into the concept, need and
methods of training, also areas of evaluation of training, retraining and dimensions of organisational
learning.
Training is a process of learning a sequence of programmed behavior. It is the application of knowledge
& gives people an awareness of rules & procedures to guide their behavior. It helps in bringing about
positive change in the knowledge, skills & attitudes of employees.
Thus, training is a process that tries to improve skills or add to the existing level of knowledge so that the
employee is better equipped to do his present job or to mould him to be fit for a higher job involving
higher responsibilities. It bridges the gap between what the employee has & what the job demands.
Since training involves time, effort & money by an organization, so an organization should to be very
careful while designing a training program. The objectives & need for training should be clearly identified
& the method or type of training should be chosen according to the needs & objectives established. Once
this is done accurately, an organization should take a feedback on the training program from the trainees
in the form of a structured questionnaire so as to know whether the amount & time invested on training
has turned into an investment or it was a total expenditure for an organization.
TRAINING DEFINED
Training is that process by which the efficiency of the employees increases and develops. Training is a
specialised knowledge which is required to perform a specific job.
Training has been defined by different scholars of management. Some important definitions of training
are as under:
1. In the words of Dale S. Beach, "Training is the organised procedure by which people learn
knowledge and I or skill for a definite purpose."
2. In the words of Michael J. Jucius, "Training is a process by which the aptitudes, skills and abilities
of employees to perform specific jobs are increased."
3. According to Edwin B. Flippo, "Training is the act of increasing the knowledge and skill of an
employee for doing a particular job."
4. In the words of Dale Yoder, "Training is the process by which manpower is filled for the particular job
it has to perform."
In simple words, to provide ability to the employee to perform a specific job is called training. Thus, the
art. Knowledge and skill to accomplish a specific job in a specific way is called training.
At all levels of organisation training and development programmes are needed in order to make
qualitative improvement in the work of the employees.
Importance of Training
Training Employee
Introduction & Definitions
Importance of Training
Need and benefit of Training
Advantages Of Training Programme
Training Process
On-the-job Methods
Off-the-job Methods
1.
Optimum Utilization of Human Resources Training and Development helps in optimizing the
utilization of human resource that further helps the employee to achieve the organizational goals as well
as their individual goals.
2. Development of Human Resources Training and Development helps to provide an opportunity
and broad structure for the development of human resources technical and behavioral skills in an
organization. It also helps the employees in attaining personal growth.
3. Development of skills of employees Training and Development helps in increasing the job
knowledge and skills of employees at each level. It helps to expand the horizons of human intellect and
an overall personality of the employees.
4. Productivity Training and Development helps in increasing the productivity of the employees that
helps the organization further to achieve its long-term goal.
5. Team spirit Training and Development helps in inculcating the sense of team work, team spirit,
and inter-team collaborations. It helps in inculcating the zeal to learn within the employees.
6. Organization Culture Training and Development helps to develop and improve the organizational
health culture and effectiveness. It helps in creating the learning culture within the organization.
7. Organization Climate Training and Development helps building the positive perception and feeling
about the organization. The employees get these feelings from leaders, subordinates, and peers.
8. Quality Training and Development helps in improving upon the quality of work and work-life.
9. Healthy work environment Training and Development helps in creating the healthy working
environment. It helps to build good employee, relationship so that individual goals aligns with
organizational goal.
10. Health and Safety Training and Development helps in improving the health and safety of the
organization thus preventing obsolescence.
11. Morale Training and Development helps in improving the morale of the work force.
12. Image Training and Development helps in creating a better corporate image.
13. Profitability Training and Development leads to improved profitability and more positive attitudes
towards profit orientation.
14. Training and Development aids in organizational development i.e. Organization gets more effective
decision making and problem solving. It helps in understanding and carrying out organisational policies.
15. Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes,
and other aspects that successful workers and managers usually display.
2. People have not to work, but work effectively with the minimum of supervision,
minimum of cost, waste and spoilage, and to produce quality goods and services.
3. Increasing use of fast changing techniques in production and other operations
requires training into newer methods for the operatives.
4. Old employees need refresher training to enable them to keep abreast of
changing techniques and the use of sophisticated tools and equipment.
5. Training is necessary when a person has to move from one job to another
because of transfer, promotion or demotion.
Such development, however, should be monitored so as to be purposeful. Without
proper monitoring, development is likely to increase the frustration of employees if
when, once their skills are developed, and expectations raised, they are not given
opportunities for the application of such skills. A good training sub-system would
help greatly in monitoring the directions in which employees should develop in the
best interest of the organisation. A good training system also ensures that
employees develop in directions congruent with their career plans.
Hence, a well-planned and w-ell-executed training programme should result in:
1. reduction in waste and spoilage;
2. improvement in methods of work;
3. reduction in learning time;
4. reduction in supervisory burden;
5. reduction in machine breakage and maintenance cost;
6. reduction in accident rate;
7. improvement in quality of products;
8. improvement in production rate;
9. improvement of morale and reduction in grievances;
10. improvement of efficiency and productivity;
11. reduction in manpower obsolescence;
12. enabling the organisation to provide increased financial incentives, opportunity
13. for internal promotion and raising of pay rates;
employees. An effective training program allows employees to participate in the training process and to
practice their skills and/or knowledge. Employees should be encouraged to become involved in the
training process by participating in discussions, asking questions, contributing their knowledge and
expertise, learning through handson experiences, and even through roleplaying exercises.
Step 5: Evaluation One way to make sure that the training program is accomplishing its goals is by using
an evaluation of the training by both the students and the instructors Training should have, as one of its
critical components, a method of measuring the effectiveness of the training. Evaluations will help
employers or supervisors determine the amount of learning achieved and whether or not an employee's
performance has improved on the job as a result.
On-the-job Methods
Training Employee
Introduction & Definitions
Importance of Training
Need and benefit of Training
Advantages Of Training Programme
Training Process
On-the-job Methods
Off-the-job Methods
areas, especially when proficiency in a job is the result of a relatively long training or apprenticeship
period, e.g., job of a craftsman, a machinist, a printer, a tool maker, a pattern designer, a mechanic, etc.
Internship
Internship is one of the on-the-job training methods. Individuals entering industry in skilled trades like
machinist, electrician and laboratory technician are provided with thorough instruction though theoretical
and practical aspects. For example, TISCO, TELCO and BHEL select the candidates from polytechnics,
engineering colleges and management institutions and provide apprenticeship training. Apprenticeship
training programmes are jointly sponsored by colleges, universities and industrial organisations to provide
the opportunity to the students to gain real-life experience as well as employment. Exhibit presents the
benefits of apprenticeship training.
Most of the Universities and Colleges encourage students for internship as part of the curriculum as it is
beneficial to all concerned.
Advantages of On-the-Job Training:
1. It is directly in the context of job
2. It is often informal
3. It is most effective because it is learning by experience
4. It is least expensive
5. Trainees are highly motivated
6. It is free from artificial classroom situations
Disadvantages of On-the-Job Training:
1. Trainer may not be experienced enough to train or he may not be so inclined.
2. It is not systematically organized
3. Poorly conducted programs may create safety hazards.
Off-the-job Methods
Training Employee
Introduction & Definitions
Importance of Training
Need and benefit of Training
Advantages Of Training Programme
Training Process
On-the-job Methods
Off-the-job Methods
This occurs when workers are taken away from their place of work to be trained. This may take place
at training agency or Local College, although many larger firms also have their own training centers.
Training can take the form of lectures or self-study and can be used to develop more general skills and
knowledge that can be used in a variety of situations, e.g. management skills programme.
Trainings conducted in simulated environments, classrooms, seminars, etc. are called Off the Job
Training.
Off the Job Training Methods
1. Classroom Lectures: Advantage It can be used for large groups. Cost per trainee is low.
Disadvantages Low interest of employees. It is not learning by practice. It is One-way communication.
No authentic feedback mechanism. Likely to lead to boredom for employees.
2. Audio-Visual: It can be done using Films, Televisions, Video, and Presentations etc. Advantages
Wide range of realistic examples, quality control possible. Disadvantages One-way communication, No
feedback mechanism. No flexibility for different audience.
3. Simulation: Creating a real life situation for decision-making and understanding the actual job
conditions give it. Ensures active participation of all trainees. Can be very effective but needs good
conductors.
4. Vestibule Training: - Employees learn their jobs on the equipment they will be using, but the training
is conducted away from the actual work floor. While expensive, Vestibule training allows employees to get
a full feel for doing task without real world pressures. Additionally, it minimizes the problem of transferring
learning to the job.
5. Case Studies: It is a written description of an actual situation in the past in same organisation or
somewhere else and trainees are supposed to analyze and give their conclusions in writing. This is
another excellent method to ensure full and whole hearted participation of employees and generates good
interest among them. Case is later discussed by instructor with all the pros and cons of each option. It is
an ideal method to promote decision-making abilities within the constraints of limited data.
6. Role Playing: During a role play, the trainees assume roles and act out situations connected to the
learning concepts. It is good for customer service and training. This method is also called role-reversal,
socio-drama or psycho-drama. Here trainees act out a given role as they would in a stage play. Two or
more trainees are assigned roles in a given situation, which is explained to the group. There are no
written lines to be said and, naturally, no rehearsals. The role players have to quickly respond to the
situation that is ever changing and to react to it as they would in the real one. It is a method of human
interaction which involves realistic behaviour in an imaginary or hypothetical situation. Role playing
primarily involves employee-employer relationships, hiring, firing, discussing a grievance problem,
conducting a post appraisal interview, disciplining a subordinate, or a salesman making presentation to a
customer.
7. Programmed Instructions: This involves two essential elements: (a) a step-by-step series of bits
of knowledge, each building upon what has gone before, and (b) a mechanism for presenting the series
and checking on the trainees knowledge. Questions are asked in proper sequence and indication given
promptly whether the answers are correct.
This programme may be carried out with a book, a manual or a teaching machine. It is primarily used for
teaching factual knowledge such as Mathematics, Physics, etc.
8. Computer Aided Instructions: It is extension of PI method, by using computers. Advantages
Provides accountabilities, modifiable to technological innovations, flexible to time. Disadvantages High
cost.
Advantages of Off-the-Job Training
Trainers are usually experienced enough to train
It is systematically organized
Efficiently created programs may add lot of value
Disadvantages of Off-the-Job Training:
It is not directly in the context of job
It is often formal
It may not be based on experience.
It is expensive.
Trainees may not be much motivated
It is artificial in nature.
employers do not have to pay compensation to workers who are injured for three
days or less.
Statutory compensation in Australia
As Australia experienced a relatively influential labour movement in the late 19th
and early 20th century, statutory compensation was implemented very early in
Australia.
South Australia
In South Australia legislation was enacted in 1986 called the Workers Rehabilitation
and Compensation Act. The WorkCover Corporation of South Australia WorkCoverSA
has the responsibility for administering the Act.
New South Wales
In NSW, workers compensation is governed by the Worker's Compensation Act 1987.
WorkCover NSW is a statutory authority within the portfolio of the Minister for
Finance. Its primary objective is to work in partnership with the NSW community to
achieve safe workplaces, effective return to work and security for injured workers.
Queensland [QLD]
In QLD, workers compensation is governed by the Worker's Compensation and
Rehabilitation Act 2003. WorkCover Queensland is the main provider of workers
compensation insurance to Queensland employers since its formation in 1997.
WorkCover Queensland Laws
Victoria
Workers Compensation is managed in Victoria by WorkSafe Victoria" which has the
role of managing Victoria's workplace safety system. The responsibilities broadly are
help employees avoid workplace injuries occurring, enforcement of Victoria's
occupational health and safety laws, provision of reasonably priced workplace injury
insurance for employers, assisting injured workers back into the workforce and
managing the workers' compensation scheme by ensuring the prompt delivery of
appropriate services and adopting prudent financial practices.
Australian Capital Territory
In ACT, workers compensation is governed by the Workers Compensation Regulation
2002 made under the Workers Compensation Act 1951. WorkSafe ACT was created
on 3 May 2010 to replace ACT Workcover. WorkSafe ACTs enforces ACT's health and
safety and workers compensation laws. ACT's Workers Compensation Regulation
Western Australia
In WA, workers compensation is governed by the Workers' Compensation and Injury
Management Act 1981. WorkCover WA is the government agency responsible for
overseeing the workers' compensation and injury management system in Western
Australia. Workers' Compensation Laws in Western Australia
Northern Territory
In NT, workers compensation is governed by the Workplace Health and Safety Act
2011. Worksafe is the administrative and regulatory arm of Northern Territorys
Work Health Authority. Northern Territory Worksafe - Workplace Health and Safety
Act
Tasmania
Tasmania's Workers Compensation system is managed by WorkCover Tasmania
which takes its role seriously in Workers Compensation. It monitors and ensures
safety and prevention including producing publications, education seminars, assists
businesses with an advisory service, oversees the accreditation of medical
practitioners, ensures that employees are insured and licensed and also promotes
special events.
Workers' compensation in Brazil
Welfare (called Instituto Nacional do Seguro Social - INSS) is the social insurance for
those who contribute. It is a public institution that aims to recognize and grant
rights to its policyholders. The amount transferred by Welfare is used to replace the
income of the worker taxpayer, when he loses the ability to work, by sickness,
disability, age, death, involuntary unemployment, or even maternity and
imprisonment. During the first 15 days workers salary is paid by his employers and
after that by Welfare, while inability to work lasts. It is up to 75% of the workers
wages.
The Brazilian Welfare went through several conceptual and structural changes,
involving the degree of coverage, the list of benefits and how the system is
financed. If one cannot work, his employer pays for the first 15 days and the Welfare
pays from the 16th day on, while he is unable to work. On the other hand, if workers
intend to receive compensation from their former employer, there is a time limit for
filling a claim (2 years), which must be legally supported. Workers compensation
laws are the same in the whole country and tend to be protective.
Statutory workers' compensation in Canada
Workers' compensation was Canada's first social program to be introduced as it was
favoured by both workers' groups and employers hoping to avoid lawsuits. The
system arose after an inquiry by Ontario Chief Justice William Meredith who outlined
a system that workers should be compensated for workplace injuries, but that they
must give up their right to sue their employers. It was introduced in the various
provinces at different dates. Ontario was first in 1915, Manitoba in 1916, British
Columbia in 1917. It remains a provincial responsibility and thus the exact rules
vary from province to province. In some provinces, such as Ontario's Workplace
Safety and Insurance Board, the programme also had a preventative role ensuring
workplace safety. In British Columbia, the occupational health and safety mandate
(including the powers to make regulation, inspect and assess administrative
penalties)is legislatively assigned to the Workers' Compensation Board of British
Columbia WorkSafeBC. In most provinces the workers' compensation board or
commission remains solely concerned with insurance. The workers' compensation
insurance system in every province is funded by employers based on their payroll,
industry sector and history of injuries (or lack thereof) in their workplace (usually
referred to as "experience rating").
Worker's compensation in Germany
Main article: Worker's compensation Germany
The German worker's compensation law of 6 July 1884 initiated by Prince Otto
von Bismarck, passed only after three attempts was the first of its kind in the
world. Similar laws passed in Austria in 1887, Norway in 1894, and Finland in 1895.
The Sickness Insurance law paid indemnity to all private wage earners and
apprentices, including those who work in the agricultural and horticultural sectors
and marine industries, family helpers and students with work-related injuries, for up
to 13 weeks. Workers who are totally disabled get continued benefits at 67% after
this 13-week period - paid by the accident funds, financed entirely by employers.
The German compensation system has been taken as a model for many nations.
Workers' compensation in the United Kingdom
There is no comparable workers compensation scheme in the UK. An employee can
pay for permanent health insurance or private medical plans but the UK
government does not recognise the need for a rigid insurance scheme of the sort
prevalent across the USA and a number of other countries. Work related safety
issues in the UK are controlled by the Health & Safety Executive (HSE) who provide
the framework by which employers and employees are able to comply with
statutory rules and regulations.
With the exception of the following all employers are obliged to purchase
compulsory Employers Liability Insurance in accordance with the Employers Liability
(Compulsory Insurance) Act of 1969. The current minimum Limit of Indemnity
required is 5,000,000 per occurrence. Market practice is to usually provide a
minimum 10,000,000 with inner limits to 5,000,000 for certain risks e.g. workers
on oil rigs and acts of terrorism.
Employers who do not require Employers Liability Compulsory Insurance are:
local authorities (other than Parish Councils)
joint boards or committees whose members include members of local authorities
police authorities
nationalised industries or their subsidiaries
certain bodies which are financed out of public funds
employers of crews on offshore installations, ships or hovercraft, if they are covered
instead with a mutual insurance association of ship owners or ship owners and
others
a health service body or NHS Trust
"Employees" are defined as anyone who has entered into or works under a contract
of service or apprenticeship with an employer. The contract may be for manual
labour, clerical work or otherwise, it may be written or verbal and it may be for full
time or part time work.
Persons who are not classed as employees and, therefore, are exempt are:persons who are not employees (for example independent contractors who are not
the employees of the person engaging them)
people employed in any activity which is not a business (e.g. domestic servants)
people who are related to the employer - husband, wife, father, mother,
grandfather, grandmother, stepfather, stepmother, son, daughter, grandson,
granddaughter, stepson, stepdaughter, brother sister, half-brother or half-sister
people who are not normally resident in the United Kingdom and who are working
here for fewer than 14 consecutive days.
Employees need to establish that their employer has a legal liability to pay
compensation. This will principally be a breach of a statutory duty or under the tort
of negligence. In the event that the employer is insolvent or no longer in existence
Compensation can be sought directly from the insurer under the terms of the Third
Party Rights Against Insurers Act of 1930.
Voluntary or Discretionary Benefits
Employee Benefits
Employee Benefits Introduction
Mandatory or Compulsory Benefits
Voluntary or Discretionary Benefits
Adobe Benefits & Compensation
McDonald's benefits for Staff
Organizations voluntarily provide numerous benefits. These benefits may be
classified as (1) payment for time not worked, (2) health and security benefits, (3)
employee services, and (4) premium pay. Generally speaking, such benefits are not
legally required.
a) Payment For Time Not WorkedIn providing payment for time not worked,
employers recognize that employees need time away from the job for many
purposes, such as paid vacations, payment for holidays not worked, paid sick leave,
jury duty, national guard or other military reserve duty, voting time, and
bereavement time. Some payments are provided for time off taken during work
hours, such as rest periods, coffee breaks, lunch periods, cleanup time, and travel
time.
Paid Vacations: Payment for time not worked serves important compensation
goals. Paid vacations provide workers with an opportunity to rest, become
rejuvenated, and hopefully, become more productive.
Sick Leave: Each year many firms allocate, to each employee, a certain number of
days of sick leave, which they can use when ill.
b) Health BenefitsHealth benefits are often included as part of an employees
indirect financial compensation. Specific areas include health, dental, and vision
care.
Health care: Benefits for health care represent the most expensive and fastestgrowing cost in the area of indirect financial compensation. Many factors have
combined to create this situation: an aging population, a growing demand for
medical care, increasingly expensive medical technology, a lack of price controls,
and inefficient administrative processes. In addition to self-insurance and traditional
commercial insurers, employers may utilize one of several options. Health
maintenance organizations (HMOs) are one option in which all services are covered
for a fixed fee; however, employers control which doctors and health facilities may
be used. Point-of-service (POS) permits a member to select a provider within the
network, or, for a lower level of benefits, go outside the network. Preferred provider
organizations (PPOs) are a more flexible managed care system. Although incentives
are provided to members to use services within such a system, out-of-network
providers may be utilized at greater cost. Exclusive provider organizations (EPO)
offer a smaller PPO provider network and usually provide little, if any, benefits when
an out-of-network provider is used.
Capitation: Typically, the reimbursement method used by primary care physicians
is an approach to health care where providers negotiate a rate for health care for a
covered life over a period of time. It presumes that doctors have an incentive to
keep patients healthy and to avoid costly procedures when they are paid per patient
rather than per service.
Defined-Contribution health care system: Companies give each employee a set
amount of money annually with which to purchase health care coverage.
Utilization Review: A process that scrutinizes medical diagnoses, hospitalization,
surgery, and other medical treatment and care prescribed by doctors.
Dental and Vision Care: Relative newcomers to the list of potential health
benefits. Both types of plans are typically paid for entirely by the employers.
c) Security BenefitsSecurity benefits include retirement plans, disability
insurance, life insurance,and supplemental unemployment benefits.
Retirement Plans: Private retirement plans provide income for employees who
retire after reaching a certain age or having served the firm for a specific period of
time. In a defined benefit plan,the employer agrees to provide a specific level of
retirement income that is either a fixed dollar amount or a percentage of earnings.
A defined contribution plan is a retirement plan that requires specific contributions
by an employer to a retirement or savings fund established for the employee.A
401(k) plan is a defined contribution plan in which employees may defer income up
to a maximum amount allowed. An employee stock ownership plan (ESOP) is a
defined contribution plan in which a firm makes a tax-deductible contribution of
stock shares or cash to a trust.
Disability Protection: Workers compensation protects employees from jobrelated accidents and illnesses. Some firms, however, provide additional protection
that is more comprehensive.
Supplemental Unemployment Benefits (SUB): Supplemental unemployment
benefits are designed to provide additional income for employees receiving
unemployment benefits.
Life Insurance: Group life insurance is a benefit commonly provided to protect the
employees family in the event of his or her death. Although the cost of group life
insurance is relatively low, some plans call for the employee to pay part of the
premium.
d) Employee ServicesOrganizations offer a variety of benefits that can be
termed employee services. These benefits encompass a number of areas including
relocation benefits, child care, educational assistance, food services/ subsidized
cafeterias, and financial services.
Relocation Benefits: Include shipment of household goods and temporary living
expenses, covering all or a portion of the real estate costs associated with buying a
new home and selling the previously occupied home.
Child Care: Another benefit offered by some firms is subsidized child care. Here,
the firm may provide an on-site child care center, support an off-site center, or
subsidize the costs of child care.
Educational Assistance: According to a recent benefits survey, 81 percent have
educational benefits that reimburse employees for college tuition and books.
Food Services/ Subsidized Cafeterias: Most firms that offer free or subsidized
lunches feel that they get a high payback in terms of employee relations.
Financial Services: One financial benefit that is growing in popularity permits
employees to purchase different types of insurance policies through payroll
deduction.
Unique Benefits: A tight labor market gives birth to creativity in providing
benefits.
e) Premium PayCompensation paid to employees for working long periods of
time or working under dangerous or undesirable conditions.
Hazard pay: Additional pay provided to employees who work under extremely
dangerous conditions.
Shift differentials: Paid to employees for the inconvenience of working
undesirable hours.
f) Benefits for Part-Time EmployeesRecent studies indicate that employers are
offering this group more benefits than ever. Growth in the number of part-timers is
due to the aging of the workforce and also to an increased desire by more
employees to balance their lives between work and home.
Adobe Benefits & Compensation
Employee Benefits
Employee Benefits Introduction
Mandatory or Compulsory Benefits
Voluntary or Discretionary Benefits
Adobe Benefits & Compensation
McDonald's benefits for Staff
Adobe believes in creating a vibrant and dynamic workplace recognized for
attracting and developing exceptional employees who are rewarded for their
contributions to our business.
Our Total Rewards consists of Fixed Compensation, Variable Compensation, a huge
array of Benefits and the experience that Adobe offers to all its employees.
Rewards Philosophy
We want to ensure that we can attract and retain talented and motivated
employees throughout the world partnering in our success.
Compensation
Adobe offers cash compensation which forms the fixed component of salary
positioned ahead of the market.
Variable compensation plans include both cash and equity based programs which
are benchmarked with the best practices in the market.
Cash based plans include:
Myriad of programs like profit sharing, incentive plans, product ship bonuses etc.
Equity based plans include:
Employee Restricted Stock Unit Plan
Employee Stock Option Plan
Employee Stock Purchase Plan
Benefits
Adobe is committed to providing comprehensive and competitive benefits package
to all its employees.
Our benefits include:Health Benefits: All employees are covered under the Group Tem Medical
insurance which includes their spouse, children and Parents.
Risk Benefits: Adobe provides Group Term Life Insurance, Group Term
Personal Accident Insurance and Business Travel Accident Insurance which
covers all its employees.
Retiral Benefits: This includes the Provident Fund Scheme which is managed by
India Provident Fund Trust and Gratuity Scheme which is as per the Payment of
Gratuity Act.
Other Benefits:
Public Holidays
Leaves which consist of:
Personal Time Off (PTO)
Paternity Leave
Maternity Leave
Miscarriage Leave
Leave of illness (arising out of pregnancy)
Bereavement Leave
Sabbatical Leave
Educational Assistance to Employees
Employee Assistance program which provides free counseling assistance
Concierge Services*
Free Cafeteria Services
Company Vehicle schemes
Medical Room Facility
McDonald's benefits for Staff
Employee Benefits
Employee Benefits
Employee Benefits Introduction
Mandatory or Compulsory Benefits
Voluntary or Discretionary Benefits
Adobe Benefits & Compensation
McDonald's benefits for Staff
The following information highlights McDonald's benefits for Staff (e.g., home office,
division or region office) employees located in the United
States. Highlights of McDonald's Corporation benefits for U.S. Restaurant
Management and Crew employees can be found on the USA Careers site.
McDonald's benefits program is designed to attract, retain and engage talented
people who will deliver strong performance and help McDonald's achieve our
business goals and objectives.
For McDonald's Corporation U.S. employees at corporate, division and
region offices, our many benefits are organized into four categories:
Taking care of your current and future financial needs can be challenging. That's
why we offer the following savings and money management programs:
Profit Sharing and Savings Plan
Our Profit Sharing and Savings Plan lets employees save from 1% to 50% of their
pay on a tax-deferred basis in the 401(k) feature of the plan. McDonald's matches
eligible employees' contributions with $3 for each $1 of the first 1% of pay they
contribute, and $1 for each $1 on the next 4% they contribute. Eligible employees
may also receive a discretionary profit sharing match of 0% to 4% based on the first
1% of pay they contribute. Employees are always 100% vested in their contributions
and the company matches.
Mc$ave
Mc$ave is a special money market fund for McDonald's employees. Money put into
Mc$ave is invested in the Prime Reserve Fund managed by T. Rowe Price.
MCDirect Shares
MCDirect Shares is a direct stock purchase plan that lets employees further build
ownership and reinvest dividends in the company.
Credit Union
All McDonald's employees can take advantage of a full range of services available
through the Corporate America Family Credit Union.
Financial Planning Services
This program gives employees access to professional financial planning services
through Ameriprise Financial or Merrill Lynch.
Educational Assistance
Our educational assistance program helps support eligible employees in their efforts
to further their education. Employees can get reimbursed for 90% of eligible
expenses, up to a maximum of $5,250 a year ($2,000 a year for part-time
employees), for grades "C" and above.
Matching Gift Program
Our matching gifts program is designed to encourage employee support of not-forprofit organizations. With this program, McDonald's matches employee gifts to
qualified educational, civic, cultural, health and youth organizations with one dollar
for every dollar the employee contributes, up to $5,000 a year.
Employee Resource Connection
This program gives eligible employees access to a broad array of services that help
them manage many facets of their life outside the office, including: Concierge
services, for help in finding resources for almost anything employees may be
interested in; financial services, for help with subjects such as setting a budget,
getting out of debt, and any other financial information; legal services, for legal
information and, if necessary, referrals to qualified attorneys; and counseling
services for professional, confidential assistance for managing problems and
personal concerns.
International Fitness Club Network
Employees can receive discounts on new membership or other rewards for existing
membership at participating clubs nationwide, plus discounts on home fitness
equipment, and online health and fitness information.
Auto and Home Insurance Program
McDonald's employees can purchase auto and home insurance through the MetLife
Auto and Home Insurance Program. The MetLife Auto and Home Insurance Program
offers a McDonald's group rate plus other advantages.
BeyondWork
BeyondWork is a free Internet discount program for recreational products and
services. McDonald's employees in the U.S. can go online 24 hours a day, seven
days a week to BeyondWork's site and find valuable resources and savings on
popular products and services.
All in all, our benefits programs provide our McDonald's Corporation employees with
a valuable and compelling package. We believe you'll find there's a lot to gain from
being part of the McDonald's team.
The information contained on this site is highlights of McDonald's Corporation
benefits and policies for U.S. staff employees only. The official Plan documents
govern in case of any discrepancy between the Plan and the descriptions on this
site.
Industrial Relations
Industrial relations has become one of the most delicate and complex problems of
modern industrial society. Industrial progress is impossible without cooperation of labors
and harmonious relationships. Therefore, it is in the interest of all to create and maintain
good relations between employees (labor) and employers (management).
Concept of Industrial Relations:
The term Industrial Relations comprises of two terms: Industry and Relations.
mutual understanding and good-will among all those sections in the industry which
participate in the process of production.
b. To avoid industrial conflict or strife and develop harmonious relations, which are an
essential factor in the productivity of workers and the industrial progress of a country.
c. To raise productivity to a higher level in an era of full employment by lessening the
tendency to high turnover and frequency absenteeism.
d. To establish and promote the growth of an industrial democracy based on labor
partnership in the sharing of profits and of managerial decisions, so that ban individuals
personality may grow its full stature for the benefit of the industry and of the country as
well.
e. To eliminate or minimize the number of strikes, lockouts and gheraos by providing
reasonable wages, improved living and working conditions, said fringe benefits.
f. To improve the economic conditions of workers in the existing state of industrial
managements and political government.
g. Socialization of industries by making the state itself a major employer
h. Vesting of a proprietary interest of the workers in the industries in which they are
employed.
Staff-management conflicts - from the perspective of the unitary framework - are seen as
arising from lack of information, inadequate presentation of management's policies.
The personal objectives of every individual employed in the business should be discussed with
them and integrated with the organizations needs.
Pluralistic-Perspective
In pluralism the organization is perceived as being made up of powerful and divergent subgroups - management and trade unions. This approach sees conflicts of interest and
disagreements between managers and workers over the distribution of profits as normal and
inescapable. Consequently, the role of management would lean less towards enforcing and
controlling and more toward persuasion and co-ordination. Trade unions are deemed as
legitimate representatives of employees. Conflict is dealt by collective bargaining and is viewed
not necessarily as a bad thing and if managed could in fact be channeled towards evolution and
positive change.Realistic managers should accept conflict to occur. There is a greater propensity
for conflict rather than harmony.
They should anticipate and resolve this by securing agreed procedures for settling disputes.
The implications of this approach include:
The firm should have industrial relations and personnel specialists who advise managers and
provide specialist services in respect of staffing and matters relating to union consultation and
negotiation.
Independent external arbitrators should be used to assist in the resolution of disputes.
Union recognition should be encouraged and union representatives given scope to carry out
their representative duties
Comprehensive collective agreements should be negotiated with unions
Marxist Perspective
This view of industrial relations is a by product of a theory of capitalist society and social
change. Marx argued that:
Weakness and contradiction inherent in the capitalist system would result in revolution and the
ascendancy of socialism over capitalism.
Capitalism would foster monopolies.
Wages (costs to the capitalist) would be minimized to a subsistence level.
Capitalists and workers would compete/be in contention to win ground and establish their
constant win-lose struggles would be evident.
This perspective focuses on the fundamental division of interest between capital and labor, and
sees workplace relations against this background. It is concerned with the structure and nature of
society and assumes that the conflict in employment relationship is reflective of the structure of
the society. Conflict is therefore seen as inevitable and trade unions are a natural response of
workers to their exploitation by capital.
Collective bargaining
A collective bargaining process generally consists of four types of activities- distributive
bargaining, integrative bargaining, attitudinal restructuring and intra-organizational
bargaining. Distributive bargaining: It involves haggling over the distribution of surplus.
Under it, the economic issues like wages, salaries and bonus are discussed. In
distributive bargaining, one partys gain is another partys loss. This is most commonly
explained in terms of a pie. Disputants can work together to make the pie bigger, so there
is enough for both of them to have as much as they want, or they can focus on cutting the
pie up, trying to get as much as they can for themselves. In general, distributive
bargaining tends to be more competitive. This type of bargaining is also known as
conjunctive bargaining.
Integrative bargaining:
This involves negotiation of an issue on which both the parties may gain, or at least
neither party loses. For example, representatives of employer and employee sides may
bargain over the better training programme or a better job evaluation method. Here, both
the parties are trying to make more of something. In general, it tends to be more
cooperative than distributive bargaining. This type of bargaining is also known as
cooperative bargaining.
Attitudinal restructuring:
This involves shaping and reshaping some attitudes like trust or distrust, friendliness or
hostility between labor and management. When there is a backlog of bitterness between
both the parties, attitudinal restructuring is required to maintain smooth and harmonious
industrial relations. It develops a bargaining environment and creates trust and
cooperation among the parties.
Intra-organizational bargaining:
It generally aims at resolving internal conflicts. This is a type of maneuvering to achieve
consensus with the workers and management. Even within the union, there may be
differences between groups. For example, skilled workers may feel that they are
neglected or women workers may feel that their interests are not looked after properly.
Within the management also, there may be differences. Trade unions maneuver to
achieve consensus among the conflicting groups.
Characteristics Of Collective Bargaining
It is a group process, wherein one group, representing the employers, and the other,
representing the employees, sit together to negotiate terms of employment.
Negotiations form an important aspect of the process of collective bargaining i.e., there is
considerable scope for discussion, compromise or mutual give and take in collective
bargaining.
Collective bargaining is a formalized process by which employers and independent trade
unions negotiate terms and conditions of employment and the ways in which certain
employment-related issues are to be regulated at national, organizational and workplace
levels.
Employee welfare
Welfare includes anything that is done for the comfort and improvement of employees
and is provided over and above the wages. Welfare helps in keeping the morale and
motivation of the employees high so as to retain the employees for longer duration. The
welfare measures need not be in monetary terms only but in any kind/forms. Employee
welfare includes monitoring of working conditions, creation of industrial harmony through
infrastructure for health, industrial relations and insurance against disease, accident and
unemployment for the workers and their families.
Labor welfare entails all those activities of employer which are directed towards providing
the employees with certain facilities and services in addition to wages or salaries.
Labor welfare has the following objectives:
To provide better life and health to the workers
To make the workers happy and satisfied
To relieve workers from industrial fatigue and to improve intellectual, cultural and material
conditions of living of the workers.
The basic features of labor welfare measures are as follows:
Labor welfare includes various facilities, services and amenities provided to workers for
Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the
office and factory premises and are also to be maintained in a neat and clean condition.
Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to
provide hygienic and nutritious food to the employees.
Spittoons: In every work place, such as ware houses, store places, in the dock area and
office premises spittoons are to be provided in convenient places and same are to be
maintained in a hygienic condition.
Lighting: Proper and sufficient lights are to be provided for employees so that they can
work safely during the night shifts.
Washing places: Adequate washing places such as bathrooms, wash basins with tap
and tap on the stand pipe are provided in the port area in the vicinity of the work places.
Changing rooms: Adequate changing rooms are to be provided for workers to change
their cloth in the factory area and office premises. Adequate lockers are also provided to
the workers to keep their clothes and belongings.
Rest rooms: Adequate numbers of restrooms are provided to the workers with
provisions of water supply, wash basins, toilets, bathrooms, etc.
NON STATUTORY SCHEMES
Many non-statutory welfare schemes may include the following schemes:
Personal Health Care (Regular medical check-ups): Some of the companies provide
the facility for extensive health check-up
Flexi-time: The main objective of the flextime policy is to provide opportunity to
employees to work with flexible working schedules. Flexible work schedules are initiated
by employees and approved by management to meet business commitments while
supporting employee personal life needs
Employee Assistance Programs: Various assistant programs are arranged like external
counseling service so that employees or members of their immediate family can get
counseling on various matters.
Harassment Policy: To protect an employee from harassments of any kind, guidelines
are provided for proper action and also for protecting the aggrieved employee.
Maternity & Adoption Leave Employees can avail maternity or adoption leaves.
Paternity leave policies have also been introduced by various companies.
Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance
coverage of employees for expenses related to hospitalization due to illness, disease or
injury or pregnancy.
Employee Referral Scheme: In several companies employee referral scheme is
implemented to encourage employees to refer friends and relatives for employment in the
organization.
Healthy & Safety
A.
Safety programs may be designed to accomplish their purposes in two primary ways.
The first approach is to create a psychological environment and attitudes that promote
safety. A strong company policy emphasizing safety and health is crucial. The second
approach to safety program design is to develop and maintain a safe physical working
environment.
Chance occurrences
Unsafe conditions
Physical conditions
Defective Equipment
Inadequate Machine Guards
c)
Evaluation of Safety Programsperhaps the best indicator that a safety program
is succeeding is a reduction in the frequency and severity of injuries and illnesses.
d)
Rationale for Safety and Health TrendsFirms are spending an increasing
amount of money on safety. Reasons include; (1) profitabilityemployees can produce
only while they are on the job, (2) employee relationsfirms with good safety records
can attract and retain good employees, (3) reduced liabilityan effective safety program
can reduce corporate and executive liability, (4) marketinga good safety record may
well provide companies with a competitive edge, and productivity(5) an effective safety
program may boost morale and productivity while simultaneously reducing rising costs.
II.
Ways to manage Safe and Healthy environment in organization
To cope with physical hazards and other hazards such as stress, unsafe behavior, and
poor health habits,
employers often design comprehensive safety and health programs. Among these are
safety programs,
employee assistance programs, and wellness programs.
a.
Safety Programs
A safe working environment does not just happen; it has to be created. The organizations
with the best
reputations for safety have developed well-planned and thorough safety programs.
b. Employee Assistance Programs (EAPs)
EAPs are programs designed to help employees whose job performance is suffering
because of physical,
mental, or emotional problems.
c.
Wellness Programs
As health care costs have skyrocketed over the last two decades, organizations have
become more interested in preventative programs. A complete wellness program has
three components:
It helps employees identify potential health risks through screening and testing.
It educates employees about health risks such as high blood pressure, smoking,
poor diet, and stress.
employees health, but also is detrimental to the firms financial health. Increased costs of
insurance premiums, higher absenteeism, and lost productivity cost huge amount a year.
These factors, along with rising opposition from nonsmokers and widespread local and
state laws, have spurred many firms into action, and the trend continues.
The rewards of good health habits
Effective safety programs share the following features:
They include the formation of safety committee and participation by all departments
within the company. Employees participate in safety decision and management carefully
considers employee suggestions for improving safety.
They communicate safety with a multimedia approach that includes safety lectures,
films, poster, pamphlets, and computer presentations.
They use safety directors and/or the safety committee to engage in regular selfinspection and accident research to identify potentially dangerous situations, and to
understand why accidents occur and how to correct them.
III.
Policies to prevent workplace violence
Every organization should have a two-pronged policy in place to (a) prevent workplace
violence and (b) to deal with violent incidents when they occur. An HR manager's major
responsibility is to be certain that selection policies include careful screening and
reference checking. Furthermore, the HR manager should take the lead to enforce
policies pertaining to the fair treatment of employees. This may require training
managers to recognize performance problems, refer troubled employees for counseling,
and apply disciplinary procedures consistently.
IV.
Cumulative Trauma Disorders
CTDs are also called repetitive stress (or motion or strain) injuries (or illnesses or
syndromes). CTDs do not refer to only one disorder but to a wide array of maladies
ranging from carpal tunnel syndrome to tennis elbow. The number of workers with CTDs
has risen dramatically in recent years.
V.
Benefits of a Safe and Healthy Workforce
More productivity
Increased efficiency and quality
Reduced medical and insurance costs
Lower workers compensation rates and payments
Greater workforce flexibility
VI.
The HRM Department and Employee Safety and Health
HRM department can help organizations and employers by performing tasks like:
Employee Safety
INDUSTRIAL ACCIDENTS
Psychologists are concerned with the theoretical considerations of accident causation and the research
into accident control, through proper selection, training and education of the employee; and the social and
psychological factors that influence the individual's behaviour in general. Engineers and safety officers
usually render necessary practical advice on certain aspects of safety in the industry. They look upon
prevention of accidents basically as an engineering problem to be tackled through proper designing of
mechanical safety devices. In fact, accident prevention and safety are inter-related and, therefore, require
a multi-dimensional approach. Its importance has increased because of large-scale industrialisation in
which human beings are subject to mechanical, chemical, electrical and radiation hazards.
Industrial Accident and Industrial Injury
An industrial accident may be defined as "an occurrence which interrupts or interferes with the orderly
progress of work in an industrial establishment." According to the Factories Act of 1 948, it is "an
occurrence in an industrial establishment causing bodily injury to a person which makes him unfit to
resume his duties in the next 48 hours." In other words, it is an unexpected event which is neitheranticipated nor designed to occur. It is always sudden for a gradual process does not constitute or
accident.
An industrial injury has been defined as "a personal injury to an employee which has bee-caused by an
accident or an occupational disease, and which arises out of, or in the course of, employment, and which
would entitle such an employee to compensation under the Workmen's Compensation Act, 1923."
Causes of Accidents
According to safety experts, there are three basic causes/factors that contribute to accidents in
organisations. Chance occurrences, unsafe conditions and unsafe acts on the part of employees.
1.
Unsafe Conditions (work-related causes): These, of one sort or another, are the biggest cause of
accidents. Such causes are associated with defective plants, equipment, tools materials, buildings etc.
These can be termed 'technical causes.' They arise when there are improper or inadequate safety guards
on machines; when machines break down; when improper personal: protection equipment is installed;
when mechanical or construction designs are defective and unsafe and when control devices, which have
been installed to make the operation of machines safe a n d accident free are lacking or defective; or
when there is an absence of proper maintenance and supervision of these devices.
Thus, unsafe conditions include:
1.
Improperly guarded equipment.
2.
Defective equipment.
3.
Hazardous arrangement or procedure in and or around, machines or equipment.
4.
Unsafe storage; congestion, overloading.
5.
Inadequate safety devices.
6.
Wrong and faulty lay-out, and bad location.
7.
Improper illumination glare, insufficient light.
8.
Improper ventilation insufficient air charge, impure air source.
9.
Poor house-keeping.
The other work related causes of accidents are:
a) The job itself: Some jobs are inherently more dangerous than others, such as the job of craneman in
comparison to that of the foreman. Similarly, work in some departments (like personnel) is inherently safer
than the work in others (like production department).
b) Work schedules, accidents increase late in the day. They do not usually occur during the early hours of
the work day. They are more frequent during the night shift. This is due partly to fatigue and partly to the
5.
To administer safety suggestion schemes.
6.
To organise safety education, training, publicity at various levels of companys operations.
7.
To investigate the causes of industrial injuries and the circumstances leading to accidents.
8.
To prepare and circulate accident stabilities.
9.
To act in close liaison with governmental and non-governmental agencies.
10. To co-ordinate the safety effort of the company in every possible way.
11. To assess critically the safety performance of the organisation and if necessary, conduct safety
training programmes and feedback sessions on an ongoing basis.
12. To perform the job of a salesman of safety to the top executives, and as a technician, planner,
organiser and stimulator of safety.
INDUSTRIAL HEALTH
Importance of Industrial Health
Since a large number of workers spend a great deal of their time in an industrial setting, their environment
is not usually conducive to a healthy life. Moreover, malnutrition, insanitary and psychological conditions,
and the strains and stresses under which they live impair their health. "On the one hand, efficiency in work
is possible only when an employee is healthy; on the other, the industry (in which he is employed) exposes
him to certain hazards which he would not meet elsewhere and which may affect his health. It is with the
intention of reducing these hazards and improving the worker's health that the discipline of industrial health
came into being as a branch of public health in its own right." The symptoms of bad health area high' rate
of absenteeism and turnover, industrial discontent and indiscipline, poor performance and low productivity.
That is the reason why, when industrial health programmes are introduced, both employers and workers
benefit. A reduction in the rate of labour turnover, absenteeism, accidents and occupational diseases have
been the natural consequence of industrial health programmes. The other benefits, which cannot be easily
measured, include reduced spoilage, improved morale, increased productivity per employee and a longer
working period of an individual.
Occupational Hazards and Risks
Employees in an industrial establishment are often subject to certain health hazards and occupational
diseases.
According to Roland Blake, the normal occupational health hazards may be classified into chemical,
biological, environmental, and psychological hazards. 5
Chemical substances, such as carbon monoxide, carbon dioxide, nitrogen oxide, sulphur dioxide, hydrocarbons, ozone, sulfuric acid, acetic acid, fumeric acid and tannic acid, limes and alkalies cause injury
when they are absorbed by the skin, or when they are ingested or inhaled. The results are often
disastrous. Workers may suffer from respiratory diseases, skin diseases, allergy, heart disease, cancer
and neurological disorders, all of which often shorten life expectancy. The disease or sickness may be
chronic or acute, and it may appear after a long dormant period, when it may be difficult or impossible to
treat it effectively. Often, a disease may be difficult to diagnose because its symptoms are not apparent at
all.
Gases, fumes and dust raised by such processes as grinding and crushing of stones or minerals may be
inhaled by workers and cause a serious injury, or even death. Coalminers often suffer from what is known
as "black lung" disease. Employees in manufacturing industries are often exposed to such health hazards
as arise from dust and fumes, while those working on lead or zinc smelters often show indications of zinc
or lead poisoning.
Among the biological hazards are included diseases which are caused by bacteria, fungi, viruses, insects,
dietary deficiencies, excessive drinking, imbalances, allergies, brain fever, tetanus, emotional stresses and
strains with their psychological concomitants of fear, rage, worry and anxiety. All these affect the health of
employees.
Among the environmental hazards may be included radiation, noise, vibrations, shocks, and improper
atmospheric conditions.
The increasing use of X-rays or radioactive isotopes exposes the workers, in an industrial setting, to the
risks of undetected radiation, and may cause redness of eyes, and pain, genetic disorders, cancer, sterility
or even death.
Noise is another serious problem. Many manufacturing processes are accompanied by such noise as is
capable of impairing the hearing of a worker, making him irritable and inefficient,'and making it difficult if
not impossible for him to hear any warning cries of an impending danger.6 It has been found that a worker
may suffer substantial damage if the noise level is above 80 decibels (1,200 cycles per second). There
may be temporary or permanent deafness, nervousness, difficulty in communication and loss of efficiency.
Occupational Diseases
Occupational diseases are the results of physical conditions and the presence of industrial poisonous and
non-poisonous dust in the atmosphere. Raw materials, products, by-products and waste products may, in
the process of being extracted or manufactured enter the body in such quantities as to endanger the
health of the workers. For example, workers on lead (as cable makers, lead pipe makers, compositors,
painters, plumbers, etc.) are subject to "painter's colic" or "wrist drop" disease which may result in loss of
appetite, nausea, vomiting, stomach pains, muscular and joint pains, anaemia and intestinal disorders;
and it might even cause death.
The Schedule attached to Sections 89 and 90 of the Factories Act, 1948, specially mentions the following
occupational diseases which have to be notified to the authorities under the Act:
a)
Lead poisoning, including poisoning resulting from any compound at lead or its sequel,
b)
Lead tetra-ethyl poisoning.
c)
Phosophorous poisioning
d)
Manganese poisioning or its sequel
e)
Mercury poisoning.
f)
Arsenic poisoning.
g)
Poisoning from nitrous fumes.
h)
Carbon bisulphide poisoning.
i)
Benzene poisoning.
j)
Chrome ulceration.
k)
Anthrax.
l)
Silicosis.
m) Poisoning from halogens or halogen derivatives of the hydro-carbon of the alphabet : series.
n)
Pathological manifestations due to
(i)
Radium or other radio-active substances; and
(ii)
X-rays.
o)
Primary cancer of the skin.
p)
Toxic jaundice due to poisonous substances.
q)
Dermatitis due to the action of mineral oil.
r)
Bysionosis.
s)
Asbestosis.
t)
Toxic anaemia.
u)
Occupational or contract dermatitis caused by direct contact with chemicals and paints.
v)
Loss of hearing induced by noise.
In addition to the above, the following diseases have been included under the Workmen's Compensation
Act, 1923:
a)
Occupational contract caused by infra-red radiation;
b)
Telegraphist's cramp; and
c)
Begassoise.
Protection against Health Hazards
An industrial establishment should protect its employees against health hazards:
By substituting a less toxic substance for the hazardous chemical, by isolating the process, or
by providing protective clothing, handling and warning devices, and by providing safety
education;
By ensuring that firms using radiation in their manufacturing process insist that their
employees
wear badges which indicate the amount of radiation they have been exposed to;
By controlling noise in factories, by segregating noisy equipment, by dampening vibration, or
by redesigning noisy equipment or by the use of vibration-absorbing material at certain
points. The employee may be asked to wear ear-coverings or ear-plugs;
By devoting adequate attention to lighting, temperature, and atmospheric conditions, by
controlling dust, fumes and gases, and by providing protective devices, clothing, goggles and
shields.
Employee Welfare
Welfare includes anything that is done for the comfort and improvement of employees and is provided over
and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to
retain the employees for longer duration. The welfare measures need not be in monetary terms only but in
any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial
harmony through infrastructure for health, industrial relations and insurance against disease, accident and
unemployment for the workers and their families.
Labor welfare entails all those activities of employer which are directed towards providing the employees
with certain facilities and services in addition to wages or salaries.
Labor welfare has the following objectives:
To provide better life and health to the workers
To make the workers happy and satisfied
To relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of
living of the workers.
The basic features of labor welfare measures are as follows:
Labor welfare includes various facilities, services and amenities provided to workers for improving their
health, efficiency, economic betterment and social status.
Welfare measures are in addition to regular wages and other economic benefits available to workers due
to legal provisions and collective bargaining
Labor welfare schemes are flexible and ever-changing. New welfare measures are added to the existing
ones from time to time.
Welfare measures may be introduced by the employers, government, employees or by any social or
charitable agency.
The purpose of labor welfare is to bring about the development of the whole personality of the workers to
make a better workforce.
Employee Welfare Schemes
Organizations provide welfare facilities to their employees to keep their motivation levels high. The
employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare
schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as
compliance to the laws governing employee health and safety. These include provisions provided in
industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act
1962. The non-statutory schemes differ from organization to organization and from industry to industry.
STATUTORY WELFARE SCHEMES
The statutory welfare schemes include the following provisions:
Drinking Water: At all the working places safe hygienic drinking water should be provided.
Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be
provided.
First aid appliances: First aid appliances are to be provided and should be readily assessable so that in
case of any minor accident initial medication can be provided to the needed employee.
Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and
factory premises and are also to be maintained in a neat and clean condition.
Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic
and nutritious food to the employees.
Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises
spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition.
Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during
the night shifts.
Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the
stand pipe are provided in the port area in the vicinity of the work places.
Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the
factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes
and belongings.
Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply,
wash basins, toilets, bathrooms, etc.
NON STATUTORY SCHEMES
Many non-statutory welfare schemes may include the following schemes:
Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for
extensive health check-up
Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with
flexible working schedules. Flexible work schedules are initiated by employees and approved by
management to meet business commitments while supporting employee personal life needs
Employee Assistance Programs: Various assistant programs are arranged like external counseling
service so that employees or members of their immediate family can get counseling on various matters.
Harassment Policy: To protect an employee from harassment of any kind, guidelines are provided for
proper action and also for protecting the aggrieved employee.
Maternity & Adoption Leave Employees can avail maternity or adoption leaves. Paternity leave policies
have also been introduced by various companies.
Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of
employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.
Employee Referral Scheme: In several companies employee referral scheme is implemented to
encourage employees to refer friends and relatives for employment in the organization.
APPROACHES TO LABOUR WELFARE
Approaches to employee welfare refer to the beliefs and attitudes held by agencies which provide welfare
facilities. Some agencies provide welfare facilities inspired by religious faith, others as a philanthropic duty
and the like.
The various approaches to labour welfare reflect the attitudes and beliefs of the agencies which are
engaged in welfare activities. Welfare facilities may be provided on religious, philanthropic or some other
grounds. Moreover, the different approaches to labour welfare reflect the evolution of the concept of
welfare. In bygone days, the government of the land had to compel the owner of an industrial
establishment to provide such basic amenities as canteens, rest rooms, drinking water, good working
conditions, and so forth, for their employees. Such compulsion was necessary because the employer
believed in exploiting labour and treating it in an unfair manner. But times have changed, and the concept
of welfare, too, has undergone changes. Many progressive managements today provide welfare facilities,
voluntarily and with enlightened willingness and enthusiasm. In fact, welfare facilities are not restricted to
the workers alone. They have now been extended to the society in general. In other words, labour welfare
has been extended to include social welfare. Tata Steel Works at Jamshedpur, for example, spends Rs 10
crore each year on social welfare. Brooke Bond have set up a free animal welfare clinic at Gevrai,
Aurangabad, under the direct charge of a qualified veterinary doctor. Jindal Aluminium, Bangalore,
maintains the famous Naturopathy and Yogic Sciences Centre and a public school for the benefit of the
public. The Jindal Scholarship Trust has been set up, under which deserving students are given
scholarships. The Hindustan Machine Tools has a big playground and a community hall, which are let out
for competitions and functions.
A study of the approaches to labour welfare is desirable for the management, the workers and the general
reader. For the general reader, a study of approaches is essential because his/her knowledge of the
subject is incomplete without a knowledge of these approaches, and a knowledge of approaches enables
the manager and the worker to have a better perspective on welfare work.
The approaches and their brief descriptions are (see Fig. 19.1):
1. The policing theory of labour welfare.
2. The religion theory of labour welfare.
3. The philanthropic theory of labour welfare.
4. The paternalistic theory of labour welfare.
5. The placating theory of labour welfare.
treated kindly, and if the conditions of their work are congenial, they will work efficiently. Welfare work is a
means of securing, preserving and increasing the efficiency of labour.10
Social Theory
The social obligation of an industrial establishment has been assuming great significance these days. The
social theory implies that a factory is morally bound to improve the conditions of the society in addition to
mproving the condition of its employees. Labour welfare, as mentioned earlier, is gradually becoming
social welfare.
Industrial Disputes
The causes of industrial disputes can be broadly classified into two categories:
economic and non-economic causes. The economic causes will include issues relating
to compensation like wages, bonus, allowances, and conditions for work, working
hours, leave and holidays without pay, unjust layoffs and retrenchments. The non
economic factors will include victimization of workers, ill treatment by staff members,
sympathetic strikes, political factors, indiscipline etc.
Wages and allowances: Since the cost of living index is increasing, workers
generally bargain for higher wages to meet the rising cost of living index and to
increase their standards of living. In 2002, 21.4% of disputes were caused by
demandof higher wages and allowances. This percentage was 20.4% during 2003 and
during 2004 increased up to 26.2%. In 2005, wages and allowances accounted for
21.8% of disputes.
Personnel and retrenchment: The personnel and retrenchment have also been an
important factor which accounted for disputes. During the year 2002, disputes caused
by personnel were 14.1% while those caused by retrenchment and layoffs were 2.2%
and 0.4% respectively. In 2003, a similar trend could be seen, wherein 11.2% of the
disputes were caused by personnel, while 2.4% and 0.6% of disputes were caused by
retrenchment and layoffs. In year 2005, only 9.6% of the disputes were caused by
personnel, and only 0.4% were caused by retrenchment.
Indiscipline and violence: From the given table, it is evident that the number of
disputes caused by indiscipline has shown an increasing trend. In 2002, 29.9% of
disputes were caused because of indiscipline, which rose up to 36.9% in 2003.
Similarly in 2004 and 2005, 40.4% and 41.6% of disputes were caused due to
indiscipline respectively. During the year 2003, indiscipline accounted for the highest
percentage (36.9%) of the total time-loss of all disputes, followed by cause-groups
wage and allowance and personnel with 20.4% and11.2% respectively. A similar trend
was observed in 2004 where indiscipline accounted for 40.4% of disputes.
Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of
the disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6%
in 2004 and 2005 respectively.
Leave and working hours: Leaves and working hours have not been so important
causes of industrial disputes. During 2002, 0.5% of the disputes were because of leave
and hours of work while this percentage increased to 1% in 2003. During 2004, only
Lockouts
Employee Discipline
Discipline is the key to success. Theodore Roosevelt has said With self-discipline almost
everything is possible. Self discipline makes employee realize what is required at work.
Discipline can be positively related to performance. It is the bridge between goals and
accomplishments. Effective discipline should be aimed at the behavior, and not at the employee
personality. This is because the reason for discipline is to improve performance rather than
punishing the employee.
Factors necessary for effective disciplinary system include:
Training of supervisors is necessary: Supervisors and mangers need to be trained on when and
how discipline should be used. It is necessary to provide training on counseling skills as these
skills are used while dealing with problem employees. Moreover, discipline decisions taken by
trained supervisors are considered fair by both employees and managers.
Centralization of discipline: Centralized means that the discipline decisions should be uniform
throughout the organization. The greater the uniformity, higher will be the effectiveness of
discipline procedure.
Impersonal discipline: Discipline should be handled impersonally. Managers should try to
minimize the ill feelings arising out of the decisions by judging the offensive behavior and not
by judging the person. Managers should limit their emotional involvement in the disciplinary
sessions.
Review discipline decisions: The disciplinary decisions must be reviewed before being
implemented. This will ensure uniformity and fairness of the system and will minimize the
arbitrariness of the disciplinary system.
Notification of conduct that may result in discipline: Actions that lead to misconduct can be
listed and documented so the employees are aware of such actions. This will unable them to
claim that they have not been notified, in advance, regarding the same.
Information regarding penalties: The employer should define the penalties and other actions like
warnings, reprimands, discharge and dismissal well in advance. All these action plans must be
communicated to the employees.
Discipline shall be progressive: Discipline system should be progressive in nature. In a
progressive discipline approach the severity of actions to modify behavior increases with every
step as the employee continues to show improper behavior. The advantage of this approach is
that employees cant take it for granted.
Documentation: Effective discipline requires accurate, written record keeping and written
notification to the employees. Thus less chance will be left for the employee to say the he did
not know about the policy.
Discipline should be fair: The disciplinary decision should be fair enough for the employee. Both
over-penalization and under-penalization are considered to be unfair for the problem employee.
Moreover, an internal fairness is to be maintained, that is, two employees who have committed
the same offense should be equally punished.
Discipline shall be flexible and consistent: The manager administering discipline must consider
the effect of actions taken by other managers and of other actions taken in the past. Consistent
discipline helps to set limits and informs people about what they can and cannot do. Inconsistent
discipline leads to confusion and uncertainty.
Disciplinary action should be prompt: The effective discipline should be immediate. The longer
time lag between the misconduct offense and the disciplinary action will result in ineffectiveness
of the discipline.
Grievance In Industry
Grievance in Industry
Grievance means any type of dissatisfaction or discontentments arising out of factors related to
an employees job which he thinks are unfair. A grievance arises when an employee feels that
something has happened or is happening to him which he thinks is unfair, unjust or inequitable.
In an organization, a grievance may arise due to several factors such as:
1. Violation of managements responsibility such as poor working conditions
2. Violation of companys rules and regulations
3. Violation of labor laws
4. Violation of natural rules of justice such as unfair treatment in promotion, etc.
Various sources of grievance may be categorized under three heads: (i) management policies, (ii)
working conditions, and (iii) personal factors
1. Grievance resulting from management policies include:
Wage rates
Leave policy
Overtime
Lack of career planning
Role conflicts
Lack of regard for collective agreement
Disparity between skill of worker and job responsibility
2.
Grievance Procedure
Grievance procedure is a formal communication between an employee and the management
designed for the settlement of a grievance. The grievance procedures differ from organization to
organization.
1.
Open door policy
2.
Step-ladder policy
Open door policy: Under this policy, the aggrieved employee is free to meet the top executives
of the organization and get his grievances redressed. Such a policy works well only in small
organizations. However, in bigger organizations, top management executives are usually busy
with other concerned matters of the company. Moreover, it is believed that open door policy is
suitable for executives; operational employees may feel shy to go to top management.
Step ladder policy: Under this policy, the aggrieved employee has to follow a step by step
procedure for getting his grievance redressed. In this procedure, whenever an employee is
confronted with a grievance, he presents his problem to his immediate supervisor. If the
employee is not satisfied with superiors decision, then he discusses his grievance with the
departmental head. The departmental head discusses the problem with joint grievance
committees to find a solution. However, if the committee also fails to redress the grievance, then
it may be referred to chief executive. If the chief executive also fails to redress the grievance,
then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding
on both the parties.
GRIEVANCE PROCEDURE IN INDIAN INDUSTRY
The 15th session of Indian Labor Conference held in 1957 emphasized the need of an
established grievance procedure for the country which would be acceptable to unions as well as
to management. In the 16th session of Indian Labor Conference, a model for grievance
procedure was drawn up. This model helps in creation of grievance machinery. According to it,
workers representatives are to be elected for a department or their union is to nominate them.
Management has to specify the persons in each department who are to be approached first and
the departmental heads who are supposed to be approached in the second step. The Model
Grievance Procedure specifies the details of all the steps that are to be followed while redressing
grievances. These steps are:
STEP 1: In the first step the grievance is to be submitted to departmental representative, who is
a representative of management. He has to give his answer within 48 hours.
STEP 2: If the departmental representative fails to provide a solution, the aggrieved employee
can take his grievance to head of the department, who has to give his decision within 3 days.
STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head, he
can take the grievance to Grievance Committee. The Grievance Committee makes its
recommendations to the manager within 7 days in the form of a report. The final decision of the
management on the report of Grievance Committee must be communicated to the aggrieved
employee within three days of the receipt of report. An appeal for revision of final decision can
be made by the worker if he is not satisfied with it. The management must communicate its
decision to the worker within 7 days.
STEP 4: If the grievance still remains unsettled, the case may be referred to voluntary
arbitration.
Conciliation / Mediation involve the appointment of a third party to assist the disputing parties
to reach a settlement of their difference. It is a process in which a neutral third person, the
mediator, encourages and facilitates the resolution of a dispute between two or more parties. It is
an informal and non-adversarial process, which has the objective of helping the disputing parties
reach a mutually acceptable and voluntary agreement.
The use of binding and non-binding mediation has increased greatly in both the private and
public sectors, particularly for legal and business disputes. Many companies have chosen to
insert mediation clauses into standard contracts as a preliminary dispute resolution step before
arbitration or litigation. Mediation has proven an outstandingly successful management tool for
resolving difficult disputes and should always be considered when negotiations fail before
proceeding to arbitration or litigation. It is a means by which the parties can re-learn the basis of
communication with which they can then resolve future disputes.
and sign a written settlement agreement. If requested by the parties, the mediator and the
Institution may draw up, or assist the parties in drawing up, the settlement agreement. When the
parties sign the settlement agreement, it shall be final and binding on the parties and persons
claiming under them respectively and it shall have the same status of a decree of a court of law.
The use of binding and non-binding mediation has increased greatly in both the private and
public sectors, particularly for legal and business disputes. Many companies have chosen to
insert mediation clauses into standard contracts as a preliminary dispute resolution step before
arbitration or litigation.
Mediation can also be made of present or future disputes where the parties seek amicable
settlement of such disputes by an agreement to mediate.
To provide finality to a dispute resolution clause, many parties include an arbitration provision,
in the event their dispute is not settled during mediation. Essentially, an arbitration clause
follows the mediation clause, and requires the parties to submit all disputes not settled in
mediation to a final and binding arbitration. The mediator should never serve as an arbitrator in
a subsequent arbitration, since he or she will have been exposed to confidential communications
during the mediation process.
Mediation proceedings are settlement negotiations, and all offers, promises, conduct and
statements, whether written or oral, made in the course of the proceedings, are inadmissible in
any litigation or arbitration of their dispute. However, evidence that is otherwise admissible shall
not be rendered inadmissible as a result of its use in the mediation session. Any information
disclosed to the mediator in a private meeting shall remain confidential unless the party agrees
that it may be disclosed.
Arbitration
Arbitration is a legal process, which takes place outside the courts, but still results in a final and
legally binding decision similar to a court judgment. Parties involved in arbitration are
effectively opting out of the court system and submitting their case for resolution by a neutral,
third party arbitrator. Arbitration is generally faster, less expensive and more informal than going
to court. It also has the advantage of being private and confidential.
Arbitration is a legal process, which results in an award being issued by the arbitrator or
arbitrators. Arbitration awards are final and binding on the parties and can only be challenged in
very exceptional circumstances. An award has a status very much like a court judgment and is
enforceable in a very similar manner
Arbitration is a legal process, which takes place outside the courts, but still results in a final and
legally binding decision similar to a court judgment. Arbitration is a flexible method of dispute
resolution, which can give a quick, inexpensive, confidential, fair and final solution to a dispute.
It involves the determination of the dispute by one or more independent third parties rather than
by a court. The third parties, called arbitrators, are appointed by or on behalf of the parties in
dispute. The arbitration is conducted in accordance with the terms of the parties' arbitration
agreement, which is usually found in the provisions of a commercial contract between the
parties.
For an arbitration to take place, the disputing parties must agree to take their dispute to
arbitration. In practice, this agreement is often made before the dispute arises and is included as
a clause in their commercial contract. In signing a contract with an arbitration clause, the parties
are agreeing that their dispute will not be heard by a court but by a private individual or a panel
of several private individuals. If parties have agreed to arbitration, they will generally have to go
to arbitration rather than court as the courts will normally refuse to hear their case by staying it
to force the reluctant party to honour their agreement to arbitrate.
Advantages
Among the available dispute resolution alternatives to the courts, arbitration is by far the most
commonly used internationally. The reasons for this are clear:
Final, binding decisions
While several mechanisms can help parties reach an amicable settlement - for example through
mediation or conciliation - all of them depend, ultimately, on the goodwill and cooperation of
the parties. A final and enforceable decision can generally be obtained only by recourse to the
courts or by arbitration. Because arbitral awards are not subject to appeal, they are much more
likely to be final than the judgments of courts of first instance. Although arbitral awards may be
subject to being challenged, the grounds of challenge available against arbitral awards are
limited. The award given by the arbitrator is equivalent to a decree of a court of law and the
same can be executed directly, without making it a decree of the court.
International recognition of arbitral awards
Arbitral awards enjoy much greater international recognition than judgments of national courts.
About 120 countries have signed the 1958 United Nations Convention on the Recognition and
Enforcement of Foreign Arbitral Awards, known as the "New York Convention". The
Convention facilitates enforcement of awards in all contracting states. There are several other
multilateral and bilateral arbitration conventions that may also help enforcement.
Neutrality
In arbitral proceedings, parties can place themselves on an equal footing in five key respects:
Place of arbitration
Language used
Procedures or rules of law applied
Nationality
Legal representation
Arbitration may take place in any country, in any language and with arbitrators of any
nationality. With this flexibility, it is generally possible to structure a neutral procedure offering
Employee Retention
Employee retention is a process in which the employees are encouraged to remain with
the organization for the maximum period of time or until the completion of the project.
Employee retention is beneficial for the organization as well as the employee.
Employees today are different. They are not the ones who dont have good
opportunities in hand. As soon as they feel dissatisfied with the current employer or the
job, they switch over to the next job. It is the responsibility of the employer to retain their
best employees. If they dont, they would be left with no good employees. A good
employer should know how to attract and retain its employees. Retention involves five
major things:
Employee retention would require a lot of efforts, energy, and resources but the results
are worth it.
COMPENSATION
Compensation constitutes the largest part of the employee retention process. The
employees always have high expectations regarding their compensation packages.
Compensation packages vary from industry to industry. So an attractive compensation
package plays a critical role in retaining the employees.
Compensation includes salary and wages, bonuses, benefits, prerequisites, stock
options, bonuses, vacations, etc. While setting up the packages, the following
components should be kept in mind:
Salary and monthly wage: It is the biggest component of the compensation package.
It is also the most common factor of comparison among employees. It includes
Basic wage
House rent allowance
Dearness allowance
City compensatory allowance
Salary and wages represent the level of skill and experience an individual has. Time to
time increase in the salaries and wages of employees should be done. And this
increase should be based on the employees performance and his contribution to the
organization.
Bonus: Bonuses are usually given to the employees at the end of the year or on a
festival.
Economic benefits: It includes paid holidays, leave travel concession, etc.
Long-term incentives: Long term incentives include stock options or stock grants.
These incentives help retain employees in the organization's startup stage.
Health insurance: Health insurance is a great benefit to the employees. It saves
employees money as well as gives them a peace of mind that they have somebody to
take care of them in bad times. It also shows the employee that the organization cares
about the employee and its family.
After retirement: It includes payments that an Employee gets after he retires like EPF
(Employee Provident Fund) etc.
Miscellaneous compensation: It may include employee assistance programs (like
psychological counseling, legal assistance etc), discounts on company products, use of a
company cars, etc.
ORGANIZATION ENVIRONMENT
It is not about managing retention. It is about managing people. If an organization
manages people well, employee retention will take care of itself. Organizations should
focus on managing the work environment to make better use of the available human
assets.
People want to work for an organization which provides
Communications skills
Technical skills
In-house processes and procedures improvement related skills
C or customer satisfaction related skills
Special project related skills
Need for such trainings can be recognized from individual performance reviews,
individual meetings, employee satisfaction surveys and by being in constant touch with
the employees.
SUPPORT
Lack of support from management can sometimes serve as a reason for employee
retention. Supervisor should support his subordinates in a way so that each one of
them is a success. Management should try to focus on its employees and support them
not only in their difficult times at work but also through the times of personal crisis.
Management can support employees by providing them recognition and appreciation.
Employers can also provide valuable feedback to employees and make them feel
valued to the organization
The feedback from supervisor helps the employee to feel more responsible, confident
and empowered. Top management can also support its employees in their personal
crisis by providing personal loans during emergencies, childcare services, employee
assistance programs, counseling services, et al.
Employers can also support their employees by creating an environment of trust and
inculcating the organizational values into employees. Thus employers can support their
employees in a number of ways as follows:
By providing feedback
By counseling them
(sometimes to competitors). Often much time and money has been spent on the
employee in expectation of a future return. When the employee leaves, the investment
is not realized.
Interruption of Customer Service: Customers and clients do business with a
company in part because of the people. Relationships are developed that encourage
continued sponsorship of the business. When an employee leaves, the relationships
that employee built for the company are severed, which could lead to potential
customer loss.
Turnover leads to more turnovers: When an employee terminates, the effect is felt
throughout the organization. Co-workers are often required to pick up the slack. The
unspoken negativity often intensifies for the remaining staff.
Goodwill of the company: The goodwill of a company is maintained when the attrition
rates are low. Higher retention rates motivate potential employees to join the
organization.
Regaining efficiency: If an employee resigns, then good amount of time is lost in
hiring a new employee and then training him/her and this goes to the loss of the
company directly which many a times goes unnoticed. And even after this you cannot
assure us of the same efficiency from the new employee
8)
Providing perks: It includes coupons, discounts, rebates, etc.
Discounts in cinema halls, museums, restaurants, etc.
Retail store discounts
Computer peripherals purchase discounts
9)
Providing workplace conveniences
On-site ATM
On-site facilities for which cost is paid by employees
10) laundry facility for bachelors
11) Shipping services
Assistance with tax calculations and submission of forms
Financial planning assistance
Casual dress policies
Facilities for expectant mothers
12) Parking
13) Parenting guide
14) Lactation rooms
15) Flexi timings
16) Fun at work
Celebrate birthdays, anniversaries, retirements, promotions, etc
Holiday parties and holiday gift certificates
Occasional parties like diwali, holi, dushera, etc
Organize get together for watching football, hockey, cricket matches
Organize picnics and trips for movies etc
Sports outings like cricket match etc
Indoor games
17) Occasional stress relievers
Casual dress day
Green is the color day
Handwriting analysis
Tatoo, mehandi, hair braiding stalls on weekends
Mini cricket in office
Ice cream Fridays
Holi-Day breakfast
18) Employee support in tough time or personal crisis
Personal loans for emergencies
Childcare and eldercare services
Employee Assistance Programs ( Counseling sessions etc)
Emergency childcare services
Medium Level Strategies for Employee Retention
1)
Appreciating and recognizing a well done job
2)
Special bonus for successfully completing firm-sponsored certifications
3)
Benefit programs for family support Child adoption benefits
4)
Flexible benefits
5)
Dependents care assistance
6)
Medical care reimbursement
7)
Providing conveniences at workplace
8)
Gymnasiums
9)
Athletic membership program
10) Providing training and development and personal growth opportunities
Sabbatical programs
Professional skills development
Individualized career guidance
High Level Strategies
1)
Promoting Work/Life Effectiveness
2)
Develop flexible schedules
3)
Part-time schedules
4)
Extended leaves of absence
5)
Develop Support Services
6)
On-site day care facility etc.
7)
Understand employee needs: This can be done through proper management style
and culture
8)
Listen to the employee and show interest in ideas Appreciate new ideas and
reward risk-taking
9)
Show support for individual initiative
10) Encourage creativity
11) Encouraging professional training and development and/or personal growth
opportunities: It can be done through:
Mentoring programs
Performance feedback programs
Provide necessary tools to the employees to achieve their professional and personal
goals
Getting the most out of employee interests and talents
Higher study opportunities for employees
Vocational counseling
Offer personalized career guidance to employees
12) Provide an environment of trust: Communication is the most important and
effective way to develop trust.
13) Suggestion committees can be created
14) Open door communication policy can be followed
15) Regular feedbacks on organizations goals and activities should be taken from the
employees by:
Management communications
Intranet and internet can be used as they provide 24X7 access to the information
organization.An employee can leave the organization for any reason which he
deems fit for seeking separation. However, separation is classified basically into two
types. These are: voluntary separation and involuntary separation. Voluntary
separation refers to the separation of employees on their own request, while
involuntary separation means the separation of employees for organizational
reasons which are beyond the control of the employees. We shall now discuss the
causes of these separations in detail.
Voluntary Separation Voluntary separation, which normally begins after a request is
placed in this regard by the employee, can happen due to two reasons: professional
reason and personal reason. We shall now discuss these reasons in detail.
Professional reasons Employees may seek separation when they decide to seek
better positions, responsibilities and status outside the present organization.
Efficient employees would seek to expand their realm of knowledge and skills
continuously by working in different capacities/positions in various organizations. In
their quest for greater responsibility, power and status, they may seek separation
from the organization.
Personal reasons The important personal reasons for voluntary separation are
relocation for family reasons like marriage of the employees and health crisis of
family members, maternity and child-rearing. For instance, when working women
get married, they often prefer to settle in the partners place of occupation.
Similarly, an employee may seek voluntary separation to look after the child or
parent.
Involuntary Separation As mentioned earlier, an involuntary separation is caused
by the factors which remain beyond the purview of the employees. However, these
factors may be classified broadly into health problems, behavioural problems and
organizational problems. We shall now discuss these factors in detail
Health problems Major health problems crippling the employees may make them
invalid or unfit to continue in the profession. For instance, accidents causing
permanent disabilities and illness of the employees like brain stroke and other
terminal illnesses can lead to their involuntary separation. Death of employees is
another factor which results in their involuntary separation.
Behavioural problems An employee's objectionable and unruly behaviour within
the organization may also lead to his involuntary separation from the organization.
When the employees behaviour is unethical or violates the code of conduct in force,
the organization may initiate disciplinary actions, which may eventually result in his
termination. This may constitute an act of involuntary separation. Consistent failure
to reach performance goals by an employee can also result in his involuntary
separation.
Organizational problems Organizational problems are another important factor
that contributes to the involuntary separation of employees. The poor financial
performance of an organization may cause it to terminate the services of some of
its employees as part of cost control measure. Such terminations are also classified
as involuntary separation. Similarly, automation, organizational restructuring and
rationalization can also result in employee termination, discharge or layoff, broadly
called involuntary separation.
Types of Employee Separations
Employee Separations
Employee separations
Types of Employee Separations
Voluntary Separations
Involuntary Separations
NOKIA Employees Transfer and Layoff
Voluntary Separations
Employee Separations
Employee separations
Types of Employee Separations
Voluntary Separations
Involuntary Separations
NOKIA Employees Transfer and Layoff
An Employee Leaves an Organization of His or Her Own
Voluntary separations of this type can be minimized through equitable
compensation, benefits programs, and the creation of strong links between the
employee and the organization. While some quits can be avoided, the
circumstances surrounding many employee quits are completely beyond the control
of the organization (e.g., the relocation of a spouse or a change in family dynamics
or size).
1.Retirements
Retirements occur when employees reach the end of their careers. The age for an
employee's superannuation differs. In some States it is 58 years and in Central
Government it is 60. There is a thinking to raise the limit to 60 and 62 respectively
as there is shortage of skilled people to fill up the vacant jobs.
Retirement differs from quits. When the employee superannuates and leaves the
organization, he or she carries several benefits with himself or herself. Such a
privilege is denied to the employee who quits. Second, retirement occurs at the end
of an employee's career but the quit can take place at any time. Third,
superannuation shall not leave any soured relationship behind the retiree but a quit
is likely to result in hurt feelings with the employer.
Retirement is the point where a person stops employment completely.A person may also semiretire by reducing work hours.
Many people choose to retire when they are eligible for private or public pension benefits,
although some are forced to retire when physical conditions don't allow the person to work any
more (by illness or accident) or as a result of legislation concerning their position. In most
countries, the idea of retirement is of recent origin, being introduced during the 19th and 20th
centuries. Previously, low life expectancyand the absence of pension arrangements meant that
most workers continued to work until death. Germany was the first country to introduce
retirement in the 1880s.
Nowadays most developed countries have systems to provide pensions on retirement in old
age, which may be sponsored by employers and/or the state. In many poorer countries, support
for the old is still mainly provided through the family. Today, retirement with a pension is
considered a right of the worker in many societies, and hard ideological, social, cultural and
political battles have been fought over whether this is a right. In many western countries this
right is mentioned in national constitutions.
Normal
retirement
age
65 (60)
65
65
65*
67
65
65 (60)
65
67
65**
65
65 (64)
7%
12%
35%
12%
23%
31%
12%
22%
?
22%
58%
46%
1%
1%
9%
1%
3%
8%
1%
3%
?
0%
5%
7%
0%
0%
1%
0%
0%
1%
0%
0%
?
0%
1%
2%
65
69%
40%
10%
2%
67
66%
43%
20%
5%
2.Quits
QuitsAn employee decides to quit when his or her level of dissatisfaction with the
present job is high or a more attractive alternative job is awaiting the individual.
The reasons for dissatisfaction may be because, of the job itself or because of job
extrinsic factors such as supervision, company policy, compensation advancement
Involuntary Separations
Employee Separations
Employee separations
Types of Employee Separations
Voluntary Separations
Involuntary Separations
NOKIA Employees Transfer and Layoff
Discharge
A separation in which the employee is removed from the payroll for violation of
employee standards of conduct or safety regulations, unsatisfactory job
performance, or any other reason deemed by the organization to warrant
separation.
Layoff
This is the separation of an employee initiated by the employer due to business
reverses, the introduction of labor-saving devices, or the reduction in the demand
for particular skills. Management, as temporary measures during periods of
business recession, industrial depression, or seasonal fluctuation, resorts to layoff or
downsizing. Most managers say that downsizing is their toughest decision. To help
employees who have lost their jobs, employees can provide services such as
outplacement or helping employees find a new job, relocation assistance, and
family counseling.
Companies can justify layoff decisions by such evidence as lagging sales, growing
inventory, or a depressed economy. Employers should also provide evidence that
they considered all other options, such as transferring employees into vacant
positions, placing them in newly created part-time positions, or allowing them to
work a shorter workweek.
The recent trend toward downsizing leading to massive layoffs has been triggered
by three factors:
Decline or crisis in the firm - There is a decrease in the demand for the firms'
products or services due to a recession in business climate and increased
international competition.
Technological advances enabling many companies to produce more with fewer
people
Organizational restructuring - modification of the firm's structure to become less
hierarchical by cutting out the layer of middle management.
The following are some of the alternatives to layoffs:
Freeze hiring
Restrict overtime
Re-train/Re-deploy
Switch to job sharing
Use unpaid vacations
Use a shorter workweek
Use pay reductions
Use sabbaticals
Implement early retirement programs
Retrenchment
Retrenchment, like lay-off, also results in separation of the employee from the
organisation. Retrenchment means a permanent termination of the services of an
employee for economic reasons in a going concern. An employee to be retrenched
is required to be given three months notice before his retrenchment or in lieu of the
notice he must be paid his remuneration for the period of the notice. The retrenched
employee is entitled to get gratuity payment from his employer. For retrenchment of
the employee, notice is required to be given to the appropriate government
authority and permission for retrenchment must be obtained from the authority. The
principle of 'last come, first go* is followed for deciding which employee should be
retrenched.
Voluntary retirement
When a company realizes that it needs to downsize its scale of operations, its first
task is to examine alternatives to layoffs. One of the most popular of these methods
is early or Voluntary retirement.
In case of voluntary retirement the normal retirement benefits are calculated and
paid to all such employees who put in a minimum qualifying service Sometimes the
employer may encourage the employees to retire voluntarily with a view to reduce
surplus staff and cut down labor costs. Attractive compensation benefits are
generally in built in all such plans (referred to as golden handshake scheme). To
reduce post retirement anxieties companies these days organize counseling
sessions, and offer investment related services (e.g. Citibank , Bank of America)
Some companies extend medical and insurance benefits to the retirees also e.g.
Indian Oil corporation.
Downsizings
Downsizings such as these are also commonly called reorganizing, reengineering,
restructuring, or rightsizing. Regardless of the label applied, however, downsizing
essentially refers to layoffs that may or may not be accompanied by systematic
restructuring programs, such as staff reductions, departmental consolidations, plant
or office closings, or other forms of reducing payroll expenses. Corporate downsizing
results from both poor economic conditions and company decisions to eliminate
jobs in order to cut costs and maintain or achieve specific levels of profitability.
Companies may lay off a percentage of their employees in response to these
changes:
a slowed economy,
merging with or acquiring other companies,
the cutting of product or service lines,
competitors grabbing a higher proportion of market share,
distributors forcing price concessions from suppliers, or
a multitude of other events that have a negative impact on specific organizations or
entire industries.
In addition, downsizing may stem from restructuring efforts to maximize efficiency,
to cut corporate bureaucracy and hierarchy and thereby reduce costs, to focus on
core business functions and outsource non-core functions, and to use part-time and
temporary workers to complete tasks previously performed by full-time workers in
order to trim payroll costs.
NOKIA Employee Transfer and Layoff
Employee separation
Employee separations
Types of Employee Separations
Voluntary Separations
Involuntary Separations
NOKIA Employees Transfer and Layoff
security guard cannot afford to be careless in his job as it involves loss of money, property and wealth; a
politician or a public figure cannot afford to be careless, for his reputation and goodwill is at stake. Some
jobs need soft skills, leadership qualities, intelligence, decision making abilities, abilities to tram and
extract work from others; other jobs need forethought, vision and yet other jobs need motor skills,
perfection and extreme carefulness.
People: Almost everyone has to deal with three set of people in the work place. Those are namely boss,
co-workers in the same level and subordinates. Apart from this, some professions need interaction with
people like patients, media persons, public, customers, thieves, robbers, physically disabled people,
mentally challenged, children, foreign delegates, gangsters, politicians, public figures and celebrities.
These situations demand high level of prudence, cool temper, tactfulness, humor, kindness, diplomacy
and sensitiveness.
Stress Level: All these above mentioned factors are inter-related and inter-dependant. Stress level need
not be directly proportional to the compensation. Stress is of different types - mental stress/physical stress
and psychological or emotional stress. A Managing Director of a company will have mental stress, a
laborer will have physical stress, a psychiatrist will have emotional stress. Mental stress and Emotional
stress cause more damage than physical stress.
Career Prospects: Every job should offer career development. That is an important factor which decides
the quality of work life. Status improvement, more recognition from the Management, appreciations are
the motivating factors for anyone to take keen interest in his job. The work atmosphere should be
conducive to achieve organizational goal as well as individual development. It is a win-win situation for
both the parties; an employee should be rewarded appropriately for his good work, extra efforts, sincerity
and at the same time a lethargic and careless employee should be penalized suitably; this will motivate
the former to work with more zeal and deter the latter from being so, and strive for better performance.
Challenges: The job should offer some challenges at least to make it interesting; That enables an
employee to upgrade his knowledge and skill and capabilities; whereas the monotony of the job makes a
person dull, non-enthusiastic, dissatisfied, frustrating, complacent, initiative - less and uninteresting.
Challenge is the fire that keeps the innovation and thrill alive. A well-accomplished challenging job yields
greater satisfaction than a monetary perk; it boosts the self-confidence also.
Growth and Development: If an organization does not give chance for growth and personal
development it is very difficult to retain the talented personnel and also to find new talent with experience
and skill.
Risk Involved and Reward: Generally reward or compensation is directly proportional to the quantum of
work, man-hours, nature and extent of responsibility, accountability, delegated powers, authority of
position in the organizational chart, risk involved, level of expected commitment, deadlines and targets,
industry, country, demand and supply of skilled manpower and even political stability and economic
policies of a nation. Although risk is involved in every job its nature and degree varies in them; All said and
done, reward is a key criteria to lure a prospective worker to accept the offer.
Conclusion: A happy and healthy employee will give better turnover, make good decisions and positively
contribute to the organizational goal. An assured good quality of work life will not only attract young and
new talent but also retain the existing experienced talent.
Quality Circles
Let us look at the organization of Quality Circle technique. Basically it consists of a group organization of
eight to ten employees who meet each other during a meeting which is held one in a week, fortnight or
month depending upon the problems and their frequency of generation. These members discuss various
problems related to quality. They recommend alternative solutions to solve the problems by investigating
the causes. Depending upon the recommendations, corrections are made. Corrections are
checked and then accepted as a norm if the solution works. They generally hold their meeting in the
organisation premises. They are generally given a room where they can meet and think and come out
with solution to problems. These employees basically have a shared area of responsibilities. This leads to
a good participative environment and greater acceptability of decisions. Since the employees are not very
good at analysing and decision making, the part of quality making, the part of quality circle includes
teaching employees group communication skills, quality strategies and measurement and problem
analysis techniques.
BENEFITS OF QUALITY CIRCLES
There are no monetary rewards in the QCs. However, there are many other gains, which largely benefit
the individual and consecutively, benefit the business. These are:
Self-development: QCs assist self-development of members by improving self-confidence, attitudinal
change, and a sense of accomplishment.
Social development: QC is a consultative and participative programme where every member cooperates
with others. This interaction assists in developing harmony.
Opportunity to attain knowledge:QC members have a chance for attaining new knowledge by sharing
opinions, thoughts, and experience.
Potential Leader: Every member gets a chance to build up his leadership potential, in view of the fact
that any member can become a leader.
Enhanced communication skills:The mutual problem solving and presentation before the management
assists the members to develop their communication skills.
Job-satisfaction: QCs promote creativity by tapping the undeveloped intellectual skills of the individual.
Individuals in addition execute activities diverse from regular work, which enhances their self-confidence
and gives them huge job satisfaction.
Healthy work environment: QCs creates a tension-free atmosphere, which each individual likes,
understands, and co-operates with others.
Organizational benefits: The individual benefits create a synergistic effect, leading to cost effectiveness,
reduction in waste, better quality, and higher productivity.
All these benefits are lasting in nature, which bring about progress over a period of time.
We can now consider the question of which activities change when HRM goes international. on
the development of international HRM is helpful in considering this question. He presents a
model of international HRM (shown in Figure 1) that consists of three dimensions:
The three broad human resource activities of procurement, allocation, and utilisation. (These
three broad activities can be easily expanded into the six HR activities listed above).
The three national or country categories involved in international HRM activities:
1.
2.
3.
culture of two countries is not alike. Cultural diversity exists on following dimensions:
2. Workforce Diversity
Workforce is the building block of any organization but there is Workforce diversity in global
companies. Based on their place of origin, employees of a typical global company can be
divided into the following groups:
a. Parent-country national permanent resident of the country where the company is
headquartered.
b. Host-country national-permanent resident of the country where the operations of the
company are located.
c. Third-country national - permanent resident of a country other than the parent country and
the host country.
Further, workforce diversity can be seen in the context of employee mobility from one country
to another country for performing jobs. On this basis, an employee can be put in one of the
following categories:
a. Expatriate-a parent country national sent on a long-term assignment to the host-country
operations.
b. Inpatriate-a host-country national or third-country national assigned to the home country of
the company where it is headquartered.
c. Repatriate-an expatriate coming back to the home country at the end of a foreign assignment.
Workforce diversity implies that various categories of employees not only bring their-skills and
expertise but also their attitudes, motivation to work or not to work, feelings, and other personal
characteristics. Managing such employees with pre-determined HRM practices may not be
effective but contingency approach has to be adopted so that HRM practices become tailor-made
(specially made for a particular purpose).
3. Language Diversity
Language is a medium of expression but employees coming from different countries have
different languages. Though English is a very common language, it does not serve the purpose
adequately as it does not cover the entire world. While employees coming from different
countries may be encouraged to learn the language of the host country for better dissemination
of the information, it does not become feasible in many cases. An alternative to this is to send
multilingual communications. It implies that anything transmitted to employees should appear in
more than one language to help the message get through. While there are no hard-and-fast rules
in sending such messages, it appears safe to say that such a message should be transmitted in the
languages the employees understand to ensure adequate coverage.
4. Economic Diversity
Economic diversity is expressed in terms of per capita income of different countries where a
global company operates. Economic diversity is directly related to compensation management,
that is, paying wages / salaries and other financial compensation to employees located in
different countries. One of the basic principles of paying to employees is that "there should be
equity in paying to employees." However, putting this principle in practice is difficult for a
global company because its operations are located in different countries having different
economic status. In such a situation, some kind of parity should be established based on the cost
of living of host countries.
international managers and rotate them across foreign locations to facilitate transfer of best
HRM practices and mentoring of future global managers. Emphasis should be placed on making
managers sensitive to cultural differences and adept at managing them.
Compensation Management
There are two commonly used approaches in international compensation systems going-rate
approach in which compensation is tied to host-country norms and the balance-sheet approach in
which compensation is tied to home country norms. In both approaches, additional expenses in
the form of housing and additional taxes are reimbursed. Both the approaches have their own
merits and limitations.
Industrial Relations
Industrial relations depend on the history, legal framework, power, relations, and ideologies of
management and trade unions in each country. Therefore, MNCs have to adopt specific
industrial relations strategies to suit local conditions. However, MNCs face pressure for
standardisation in terms of productivity at least within a region if not internationally. Therefore,
they have to strike a balance between industrial relations strategies to suit local conditions and
standardization. Some MNCs lobby with local governments to have better industrial relations.
3.
4.
5.
6.
Performance management
Training and development
Compensation and Benefits
Labor relations
We can now consider the question of which activities change when HRM goes international. on
the development of international HRM is helpful in considering this question. He presents a
model of international HRM (shown in Figure 1) that consists of three dimensions:
The three broad human resource activities of procurement, allocation, and utilisation. (These
three broad activities can be easily expanded into the six HR activities listed above).
The three national or country categories involved in international HRM activities:
1.
2.
3.
result is the emergence of international HRM (IHRM) which deals with how a global company
can manage its human resources spread throughout the world.
Understanding of international perspective of HRM is required because of cultural diversity,
workforce diversity, language diversity, and economic diversity.
1. Cultural Diversity
Culture is one of the most important factors affecting HRM practices. However, when we
consider international perspective of HRM, we find cultural diversity across the globe, that is,
culture of two countries is not alike. Cultural diversity exists on following dimensions:
2. Workforce Diversity
Workforce is the building block of any organization but there is Workforce diversity in global
companies. Based on their place of origin, employees of a typical global company can be
divided into the following groups:
a. Parent-country national permanent resident of the country where the company is
headquartered.
b. Host-country national-permanent resident of the country where the operations of the
company are located.
c. Third-country national - permanent resident of a country other than the parent country and
the host country.
Further, workforce diversity can be seen in the context of employee mobility from one country
to another country for performing jobs. On this basis, an employee can be put in one of the
following categories:
a. Expatriate-a parent country national sent on a long-term assignment to the host-country
operations.
b. Inpatriate-a host-country national or third-country national assigned to the home country of
the company where it is headquartered.
c. Repatriate-an expatriate coming back to the home country at the end of a foreign assignment.
Workforce diversity implies that various categories of employees not only bring their-skills and
expertise but also their attitudes, motivation to work or not to work, feelings, and other personal
characteristics. Managing such employees with pre-determined HRM practices may not be
effective but contingency approach has to be adopted so that HRM practices become tailor-made
(specially made for a particular purpose).
3. Language Diversity
Language is a medium of expression but employees coming from different countries have
different languages. Though English is a very common language, it does not serve the purpose
adequately as it does not cover the entire world. While employees coming from different
countries may be encouraged to learn the language of the host country for better dissemination
of the information, it does not become feasible in many cases. An alternative to this is to send
multilingual communications. It implies that anything transmitted to employees should appear in
more than one language to help the message get through. While there are no hard-and-fast rules
in sending such messages, it appears safe to say that such a message should be transmitted in the
languages the employees understand to ensure adequate coverage.
4. Economic Diversity
Economic diversity is expressed in terms of per capita income of different countries where a
global company operates. Economic diversity is directly related to compensation management,
that is, paying wages / salaries and other financial compensation to employees located in
different countries. One of the basic principles of paying to employees is that "there should be
equity in paying to employees." However, putting this principle in practice is difficult for a
global company because its operations are located in different countries having different
economic status. In such a situation, some kind of parity should be established based on the cost
of living of host countries.
IMPLICATIONS FOR HRM PRACTICES
Diversity of various types in a global company suggests that HRM practices have to be tailormade to suit the local conditions. Such practices can be seen in the context of different HRM
functions.
Recruitment and Selection
A global company has the following alternative approaches to recruitment and selection of
employees:
a. Ethnocentric-all key positions, in headquarters as well as subsidiaries, are staffed by parentcountry nationals.
b. Polycentric-key positions in subsidiaries staffed by host-country nationals and those in
headquarters staffed by parent-country nationals.
c. Regiocentric-key positions staffed by host-country nationals within particular geographical
regions (such as continent-wise).
d. Geocentric-key positions in headquarters as well as subsidiaries staffed by people based on
merit, irrespective of their nationality.
Different MNCs adopt different approaches for recruitment. For example, a survey of
recruitment practices adopted by MNCs reveals that 50 per cent MNCs believe in geocentric
approach while 35 per cent MNCs believe in ethnocentric approach and key functionaries from
parent country national are put on foreign assignments for two-three years.
While selecting personnel, MNCs generally place emphasis on technical skills. Not much
emphasis is placed on skills for cultural adaptability. With the result, expatriate failure rate is
high. In order to overcome this problem, many MNCs have adopted the practice of recruiting
fresh graduates from host countries and providing training in parent country.
Performance Management
Performance management, that is, assessment of employee performance, discussing its results
with employees, and suggesting and working out way for improvement in performance, is based
on the practices adopted by MNCs in this respect for parent-country nationals. However, this has
posed a serious limitation in the American MNCs which adopt, generally, management by
objectives (MBO). MBO works in an environment which is open and provides platform for
discussion between superior and subordinate on equal footing. In countries where people are
highly oriented towards authority, any open discussion with superior by subordinate is treated as
insubordination, and MBO system does not work. Therefore, the alternatives suggested are
recognising and formally incorporating the difficulty level of operating in different countries,
relying the foreign on-site manager to consult the home-site manager before finalising
assessment, and involving the expatriate in deciding on performance criteria and making them
more appropriate to the expatriate's position and circumstances.
Companies who work hard to meet the needs of their employees can cultivate a work
atmosphere conducive to productivity. Human resource management is the best way to achieve
this. Being able to plan for the needs of employees by thinking ahead can help to improve the
rate of skilled employees who chose to remain working for a company. Improving the employee
retention rate can reduce the money companies spend on finding and training new employees.
When creating a human resources plan, it is important to consider employees may want or need
and what the company can reasonably supply. A larger company can usually afford training and
benefit programs that smaller companies cannot afford to offer. This does not mean that a
smaller company should not engage in strategic human resource management. Providing
specialized on-site training, even if provided by senior members of the company, and offering
one-on-one assessment and coaching sessions, can help employees reach peak performance
rates.
An important aspect of strategic human resource management is employee development. This
process begins when a company is recruiting and interviewing prospective employees. Improved
interviewing techniques can help to weed out applicants that may not be a good match for the
company.
After being hired on, a strong training and mentoring program can help a new member of the
staff get up to speed on company policies and any current or ongoing projects they will be
working on. To help employees perform at their best, a company can follow up with continual
training programs, coaching, and regular assessment. Investing in the development of its
employees can allow a company to turn out more consistent products.
Strategic human resource management is essential in both large and small companies. In small
companies, this may be as simple as the owner or manager taking a little time every day to
observe, assist, and assess employees, and provide regular reviews. Larger companies may have
a whole department in charge of human resources and development. By meeting the needs of the
employees in a way that also benefits the company, it is possible to improve the quality of staff
members. Taking the effort to provide employees with the tools they need to thrive is worth the
investment.
Approaches of the SHRM,
Industrial Relations
Industrial relations has become one of the most delicate and complex problems of
modern industrial society. Industrial progress is impossible without cooperation of
labors and harmonious relationships. Therefore, it is in the interest of all to create and
maintain good relations between employees (labor) and employers (management).
Concept of Industrial Relations:
The term Industrial Relations comprises of two terms: Industry and Relations.
mutual understanding and good-will among all those sections in the industry which
participate in the process of production.
b. To avoid industrial conflict or strife and develop harmonious relations, which are an
essential factor in the productivity of workers and the industrial progress of a country.
c. To raise productivity to a higher level in an era of full employment by lessening the
tendency to high turnover and frequency absenteeism.
d. To establish and promote the growth of an industrial democracy based on labor
partnership in the sharing of profits and of managerial decisions, so that ban individuals
personality may grow its full stature for the benefit of the industry and of the country as
well.
e. To eliminate or minimize the number of strikes, lockouts and gheraos by providing
reasonable wages, improved living and working conditions, said fringe benefits.
f. To improve the economic conditions of workers in the existing state of industrial
managements and political government.
g. Socialization of industries by making the state itself a major employer
h. Vesting of a proprietary interest of the workers in the industries in which they are
employed.
Staff-management conflicts - from the perspective of the unitary framework - are seen as
arising from lack of information, inadequate presentation of management's policies.
The personal objectives of every individual employed in the business should be discussed
with them and integrated with the organizations needs.
Pluralistic-Perspective
In pluralism the organization is perceived as being made up of powerful and divergent subgroups - management and trade unions. This approach sees conflicts of interest and
disagreements between managers and workers over the distribution of profits as normal and
inescapable. Consequently, the role of management would lean less towards enforcing and
controlling and more toward persuasion and co-ordination. Trade unions are deemed as
legitimate representatives of employees. Conflict is dealt by collective bargaining and is viewed
not necessarily as a bad thing and if managed could in fact be channeled towards evolution and
positive change.Realistic managers should accept conflict to occur. There is a greater propensity
for conflict rather than harmony.
They should anticipate and resolve this by securing agreed procedures for settling disputes.
The implications of this approach include:
The firm should have industrial relations and personnel specialists who advise managers and
provide specialist services in respect of staffing and matters relating to union consultation and
negotiation.
Independent external arbitrators should be used to assist in the resolution of disputes.
Union recognition should be encouraged and union representatives given scope to carry out
their representative duties
Comprehensive collective agreements should be negotiated with unions
Marxist Perspective
This view of industrial relations is a by product of a theory of capitalist society and social
change. Marx argued that:
Weakness and contradiction inherent in the capitalist system would result in revolution and the
ascendancy of socialism over capitalism.
Capitalism would foster monopolies.
Wages (costs to the capitalist) would be minimized to a subsistence level.
Capitalists and workers would compete/be in contention to win ground and establish their
constant win-lose struggles would be evident.
This perspective focuses on the fundamental division of interest between capital and labor, and
sees workplace relations against this background. It is concerned with the structure and nature of
society and assumes that the conflict in employment relationship is reflective of the structure of
the society. Conflict is therefore seen as inevitable and trade unions are a natural response of
workers to their exploitation by capital.
Collective bargaining
A collective bargaining process generally consists of four types of activities- distributive
bargaining, integrative bargaining, attitudinal restructuring and intra-organizational
bargaining. Distributive bargaining: It involves haggling over the distribution of surplus.
Under it, the economic issues like wages, salaries and bonus are discussed. In
distributive bargaining, one partys gain is another partys loss. This is most commonly
explained in terms of a pie. Disputants can work together to make the pie bigger, so
there is enough for both of them to have as much as they want, or they can focus on
cutting the pie up, trying to get as much as they can for themselves. In general,
distributive bargaining tends to be more competitive. This type of bargaining is also
known as conjunctive bargaining.
Integrative bargaining:
This involves negotiation of an issue on which both the parties may gain, or at least
neither party loses. For example, representatives of employer and employee sides may
bargain over the better training programme or a better job evaluation method. Here,
both the parties are trying to make more of something. In general, it tends to be more
cooperative than distributive bargaining. This type of bargaining is also known as
cooperative bargaining.
Attitudinal restructuring:
This involves shaping and reshaping some attitudes like trust or distrust, friendliness or
hostility between labor and management. When there is a backlog of bitterness
between both the parties, attitudinal restructuring is required to maintain smooth and
harmonious industrial relations. It develops a bargaining environment and creates trust
and cooperation among the parties.
Intra-organizational bargaining:
It generally aims at resolving internal conflicts. This is a type of maneuvering to achieve
consensus with the workers and management. Even within the union, there may be
differences between groups. For example, skilled workers may feel that they are
neglected or women workers may feel that their interests are not looked after properly.
Within the management also, there may be differences. Trade unions maneuver to
achieve consensus among the conflicting groups.
Characteristics Of Collective Bargaining
It is a group process, wherein one group, representing the employers, and the other,
representing the employees, sit together to negotiate terms of employment.
Negotiations form an important aspect of the process of collective bargaining i.e., there
is considerable scope for discussion, compromise or mutual give and take in collective
bargaining.
Collective bargaining is a formalized process by which employers and independent
trade unions negotiate terms and conditions of employment and the ways in which
certain employment-related issues are to be regulated at national, organizational and
workplace levels.
and intimate knowledge of operations, working conditions, production norms and other
relevant conditions is required.
2. Discuss: Here, the parties decide the ground rules that will guide the negotiations.
A process well begun is half done and this is no less true in case of collective
bargaining. An environment of mutual trust and understanding is also created so that
the collective bargaining agreement would be reached.
3. Propose: This phase involves the initial opening statements and the possible
options that exist to resolve them. In a word, this phase could be described as
brainstorming. The exchange of messages takes place and opinion of both the parties
is sought.
4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage
comprises the time when what ifs and supposals are set forth and the drafting of
agreements take place.
Settlement: Once the parties are through with the bargaining process, a consensual
agreement is reached upon wherein both the parties agree to a common decision
regarding the problem or the issue. This stage is described as consisting of effective
joint implementation of the agreement through shared visions, strategic planning and
negotiated change.
Importance Of Collective Bargaining
Collective bargaining includes not only negotiations between the employers and unions
but also includes the process of resolving labor-management conflicts. Thus, collective
bargaining is, essentially, a recognized way of creating a system of industrial
jurisprudence. It acts as a method of introducing civil rights in the industry, that is, the
management should be conducted by rules rather than arbitrary decision making. It
establishes rules which define and restrict the traditional authority exercised by the
management.
Importance to employees
Collective bargaining develops a sense of self-respect and responsibility among the
employees.
It increases the strength of the workforce, thereby, increasing their bargaining capacity
as a group.
Collective bargaining increases the morale and productivity of employees.
It restricts managements freedom for arbitrary action against the employees. Moreover,
unilateral actions by the employer are also discouraged.
Effective collective bargaining machinery strengthens the trade unions movement.
The workers feel motivated as they can approach the management on various matters
and bargain for higher benefits.
It helps in securing a prompt and fair settlement of grievances. It provides a flexible
means for the adjustment of wages and employment conditions to economic and
technological changes in the industry, as a result of which the chances for conflicts are
reduced.
Importance to employers
It becomes easier for the management to resolve issues at the bargaining level rather
than taking up complaints of individual workers.
Collective bargaining tends to promote a sense of job security among employees and
thereby tends to reduce the cost of labor turnover to management.
Collective bargaining opens up the channel of communication between the workers and
the management and increases worker participation in decision making.
Collective bargaining plays a vital role in settling and preventing industrial disputes.
Importance to society
Collective bargaining leads to industrial peace in the country
It results in establishment of a harmonious industrial climate which supports which
helps the pace of a nations efforts towards economic and social development since the
obstacles to such a development can be reduced considerably.
The discrimination and exploitation of workers is constantly being checked.
It provides a method or the regulation of the conditions of employment of those who are
directly concerned about them.
Workers participation in Management
times, this may result in tension and friction inside the board room. The effectiveness of
workers representative at the board depend upon his ability to participate in decision-making,
his knowledge of the company affairs, his educational background, his level of understanding
and also on the number of worker representatives in the Board.
Workers Ownership of Enterprise: Social self-management in Yugoslavia is an example of
complete control of management by workers through an elected board and workers council.
Even in such a system, there exist two distinct managerial and operative functions with
different sets of persons to perform them. Though workers have the option to influence all the
decisions taken at the top level, in actual practice, the board and the top management team
assume a fairly independent role in taking major policy decisions for the enterprises, especially
in economic matters.
Pre-requisites for Effetive Participation
The pre-requisites for the success of any scheme of participative management are the following:
Firstly, there should be a strong, democratic and representative unionism for the success of
participative management.
Secondly, there should be mutually-agreed and clearly-formulated objectives for participation
to succeed.
Thirdly, there should be a feeling of participation at all levels.
Fourthly, there should be effective consultation of the workers by the management.
Fifthly, both the management and the workers must have full faith in the soundness of the
philosophy underlying the concept of labour participation.
Sixthly, till the participative structure is fully accepted by the parties, legislative support is
necessary to ensure that rights of each other are recognised and protected.
Seventhly, education and training make a significant contribution to the purposeful working of
participative management.
Lastly, forums of participation, areas of participation and guidelines for implementation of
decisions should be specific and there should be prompt follow-up action and feedback.
Employee welfare
Welfare includes anything that is done for the comfort and improvement of employees
and is provided over and above the wages. Welfare helps in keeping the morale and
motivation of the employees high so as to retain the employees for longer duration. The
welfare measures need not be in monetary terms only but in any kind/forms. Employee
welfare includes monitoring of working conditions, creation of industrial harmony
through infrastructure for health, industrial relations and insurance against disease,
accident and unemployment for the workers and their families.
Labor welfare entails all those activities of employer which are directed towards
providing the employees with certain facilities and services in addition to wages or
salaries.
Labor welfare has the following objectives:
To provide better life and health to the workers
To make the workers happy and satisfied
To relieve workers from industrial fatigue and to improve intellectual, cultural and
engineer and the line manager jointly investigate accidentswhy, how, and where they
occur and who is involved. Main causes that can create accidents at workplace are:
Chance occurrences
Unsafe conditions
Physical conditions
Defective Equipment
Inadequate Machine Guards
Lack of Protective Equipment
Environmental conditions
Noise
Dust, Fumes
Stress
Unsafe behaviors
c)
Evaluation of Safety Programsperhaps the best indicator that a safety
program is succeeding is a reduction in the frequency and severity of injuries and
illnesses.
d)
Rationale for Safety and Health TrendsFirms are spending an increasing
amount of money on safety. Reasons include; (1) profitabilityemployees can produce
only while they are on the job, (2) employee relationsfirms with good safety records
can attract and retain good employees, (3) reduced liabilityan effective safety
program can reduce corporate and executive liability, (4) marketinga good safety
record may well provide companies with a competitive edge, and productivity(5) an
effective safety program may boost morale and productivity while simultaneously
reducing rising costs.
II.
Ways to manage Safe and Healthy environment in organization
To cope with physical hazards and other hazards such as stress, unsafe behavior, and
poor health habits,
employers often design comprehensive safety and health programs. Among these are
safety programs,
employee assistance programs, and wellness programs.
a.
Safety Programs
A safe working environment does not just happen; it has to be created. The
organizations with the best
reputations for safety have developed well-planned and thorough safety programs.
b. Employee Assistance Programs (EAPs)
EAPs are programs designed to help employees whose job performance is suffering
because of physical,
mental, or emotional problems.
c.
Wellness Programs
As health care costs have skyrocketed over the last two decades, organizations have
become more interested in preventative programs. A complete wellness program has
three components:
It helps employees identify potential health risks through screening and testing.
It educates employees about health risks such as high blood pressure, smoking,
poor diet, and stress.
They use safety directors and/or the safety committee to engage in regular selfinspection and accident research to identify potentially dangerous situations, and to
understand why accidents occur and how to correct them.
III.
Policies to prevent workplace violence
Every organization should have a two-pronged policy in place to (a) prevent workplace
violence and (b) to deal with violent incidents when they occur. An HR manager's major
responsibility is to be certain that selection policies include careful screening and
reference checking. Furthermore, the HR manager should take the lead to enforce
policies pertaining to the fair treatment of employees. This may require training
managers to recognize performance problems, refer troubled employees for
counseling, and apply disciplinary procedures consistently.
IV.
Cumulative Trauma Disorders
CTDs are also called repetitive stress (or motion or strain) injuries (or illnesses or
syndromes). CTDs do not refer to only one disorder but to a wide array of maladies
ranging from carpal tunnel syndrome to tennis elbow. The number of workers with
CTDs has risen dramatically in recent years.
V.
Benefits of a Safe and Healthy Workforce
More productivity
Increased efficiency and quality
Reduced medical and insurance costs
Lower workers compensation rates and payments
Greater workforce flexibility
VI.
The HRM Department and Employee Safety and Health
HRM department can help organizations and employers by performing tasks like:
Employee Safety
INDUSTRIAL ACCIDENTS
Psychologists are concerned with the theoretical considerations of accident causation and the research
into accident control, through proper selection, training and education of the employee; and the social
and psychological factors that influence the individual's behaviour in general. Engineers and safety
officers usually render necessary practical advice on certain aspects of safety in the industry. They look
upon prevention of accidents basically as an engineering problem to be tackled through proper
designing of mechanical safety devices. In fact, accident prevention and safety are inter-related and,
therefore, require a multi-dimensional approach. Its importance has increased because of large-scale
industrialisation in which human beings are subject to mechanical, chemical, electrical and radiation
hazards.
Industrial Accident and Industrial Injury
An industrial accident may be defined as "an occurrence which interrupts or interferes with the orderly
progress of work in an industrial establishment." According to the Factories Act of 1 948, it is "an
occurrence in an industrial establishment causing bodily injury to a person which makes him unfit to
resume his duties in the next 48 hours." In other words, it is an unexpected event which is neitheranticipated nor designed to occur. It is always sudden for a gradual process does not constitute or
accident.
An industrial injury has been defined as "a personal injury to an employee which has bee-caused by an
accident or an occupational disease, and which arises out of, or in the course of, employment, and
which would entitle such an employee to compensation under the Workmen's Compensation Act, 1923."
Causes of Accidents
According to safety experts, there are three basic causes/factors that contribute to accidents in
organisations. Chance occurrences, unsafe conditions and unsafe acts on the part of employees.
1.
Unsafe Conditions (work-related causes): These, of one sort or another, are the biggest cause
of accidents. Such causes are associated with defective plants, equipment, tools materials, buildings
etc. These can be termed 'technical causes.' They arise when there are improper or inadequate safety
guards on machines; when machines break down; when improper personal: protection equipment is
installed; when mechanical or construction designs are defective and unsafe and when control devices,
which have been installed to make the operation of machines safe a n d accident free are lacking or
defective; or when there is an absence of proper maintenance and supervision of these devices.
Thus, unsafe conditions include:
1.
2.
3.
4.
5.
6.
7.
8.
9.
6.
Overcrowding: No room should be overcrowded. There should be at least 500 cu. ft. of
space for every worker.
7.
Drinking Water: A sufficient quantity of cool drinking water should be made available
for the employees throughout the year, particularly during the hot summer months.
8.
Latrines and Urinals: Adequate latrines and urinals should be separately provided for men and
women employees.
9.
First Aid Appliances: There should be an adequate number of boxes containing first aid
materials, qualified personnel to administer first aid, and an ambulance or at least a room where an
injured employee may be given first aid.
Safety Officer: where 500 or more workers employeed in factory, there should be safety officer
The role of a safety officer in an organization should be:
1.
To formulate safety procedure, safety policy, safety requirements and standard of the company.
2.
To promote schemes to guarantee observance of legal requirements.
3.
To act as chairman or secretary or, in any other capacity on the works safety committees.
4.
To promote formation of such committees, where they do not exist.
5.
To administer safety suggestion schemes.
6.
To organise safety education, training, publicity at various levels of companys operations.
7.
To investigate the causes of industrial injuries and the circumstances leading to accidents.
8.
To prepare and circulate accident stabilities.
9.
To act in close liaison with governmental and non-governmental agencies.
10. To co-ordinate the safety effort of the company in every possible way.
11. To assess critically the safety performance of the organisation and if necessary, conduct safety
training programmes and feedback sessions on an ongoing basis.
12. To perform the job of a salesman of safety to the top executives, and as a technician, planner,
organiser and stimulator of safety.
INDUSTRIAL HEALTH
Importance of Industrial Health
Since a large number of workers spend a great deal of their time in an industrial setting, their
environment is not usually conducive to a healthy life. Moreover, malnutrition, insanitary and
psychological conditions, and the strains and stresses under which they live impair their health. "On the
one hand, efficiency in work is possible only when an employee is healthy; on the other, the industry (in
which he is employed) exposes him to certain hazards which he would not meet elsewhere and which
may affect his health. It is with the intention of reducing these hazards and improving the worker's health
that the discipline of industrial health came into being as a branch of public health in its own right." The
symptoms of bad health area high' rate of absenteeism and turnover, industrial discontent and
indiscipline, poor performance and low productivity. That is the reason why, when industrial health
programmes are introduced, both employers and workers benefit. A reduction in the rate of labour
turnover, absenteeism, accidents and occupational diseases have been the natural consequence of
industrial health programmes. The other benefits, which cannot be easily measured, include reduced
spoilage, improved morale, increased productivity per employee and a longer working period of an
individual.
Occupational Hazards and Risks
Employees in an industrial establishment are often subject to certain health hazards and occupational
diseases.
According to Roland Blake, the normal occupational health hazards may be classified into chemical,
biological, environmental, and psychological hazards. 5
Chemical substances, such as carbon monoxide, carbon dioxide, nitrogen oxide, sulphur dioxide, hydrocarbons, ozone, sulfuric acid, acetic acid, fumeric acid and tannic acid, limes and alkalies cause injury
when they are absorbed by the skin, or when they are ingested or inhaled. The results are often
disastrous. Workers may suffer from respiratory diseases, skin diseases, allergy, heart disease, cancer
and neurological disorders, all of which often shorten life expectancy. The disease or sickness may be
chronic or acute, and it may appear after a long dormant period, when it may be difficult or impossible to
treat it effectively. Often, a disease may be difficult to diagnose because its symptoms are not apparent
at all.
Gases, fumes and dust raised by such processes as grinding and crushing of stones or minerals may be
inhaled by workers and cause a serious injury, or even death. Coalminers often suffer from what is
known as "black lung" disease. Employees in manufacturing industries are often exposed to such health
hazards as arise from dust and fumes, while those working on lead or zinc smelters often show
indications of zinc or lead poisoning.
Among the biological hazards are included diseases which are caused by bacteria, fungi, viruses,
insects, dietary deficiencies, excessive drinking, imbalances, allergies, brain fever, tetanus, emotional
stresses and strains with their psychological concomitants of fear, rage, worry and anxiety. All these
affect the health of employees.
Among the environmental hazards may be included radiation, noise, vibrations, shocks, and improper
atmospheric conditions.
The increasing use of X-rays or radioactive isotopes exposes the workers, in an industrial setting, to the
risks of undetected radiation, and may cause redness of eyes, and pain, genetic disorders, cancer,
sterility or even death.
Noise is another serious problem. Many manufacturing processes are accompanied by such noise as is
capable of impairing the hearing of a worker, making him irritable and inefficient,'and making it difficult if
not impossible for him to hear any warning cries of an impending danger.6 It has been found that a
worker may suffer substantial damage if the noise level is above 80 decibels (1,200 cycles per second).
There may be temporary or permanent deafness, nervousness, difficulty in communication and loss of
efficiency.
Occupational Diseases
Occupational diseases are the results of physical conditions and the presence of industrial poisonous
and non-poisonous dust in the atmosphere. Raw materials, products, by-products and waste products
may, in the process of being extracted or manufactured enter the body in such quantities as to endanger
the health of the workers. For example, workers on lead (as cable makers, lead pipe makers,
compositors, painters, plumbers, etc.) are subject to "painter's colic" or "wrist drop" disease which may
result in loss of appetite, nausea, vomiting, stomach pains, muscular and joint pains, anaemia and
intestinal disorders; and it might even cause death.
The Schedule attached to Sections 89 and 90 of the Factories Act, 1948, specially mentions the
following occupational diseases which have to be notified to the authorities under the Act:
a)
Lead poisoning, including poisoning resulting from any compound at lead or its sequel,
b)
Lead tetra-ethyl poisoning.
c)
Phosophorous poisioning
d)
Manganese poisioning or its sequel
e)
Mercury poisoning.
f)
Arsenic poisoning.
g)
Poisoning from nitrous fumes.
h)
Carbon bisulphide poisoning.
i)
Benzene poisoning.
j)
Chrome ulceration.
k)
Anthrax.
l)
Silicosis.
m) Poisoning from halogens or halogen derivatives of the hydro-carbon of the alphabet : series.
n)
Pathological manifestations due to
(i)
Radium or other radio-active substances; and
(ii)
X-rays.
o)
Primary cancer of the skin.
p)
Toxic jaundice due to poisonous substances.
q)
Dermatitis due to the action of mineral oil.
r)
Bysionosis.
s)
Asbestosis.
t)
Toxic anaemia.
u)
Occupational or contract dermatitis caused by direct contact with chemicals and paints.
v)
Loss of hearing induced by noise.
In addition to the above, the following diseases have been included under the Workmen's Compensation
Act, 1923:
a)
Occupational contract caused by infra-red radiation;
b)
Telegraphist's cramp; and
c)
Begassoise.
Protection against Health Hazards
An industrial establishment should protect its employees against health hazards:
By substituting a less toxic substance for the hazardous chemical, by isolating the process,
or
by providing protective clothing, handling and warning devices, and by providing safety
education;
By ensuring that firms using radiation in their manufacturing process insist that their
employees
wear badges which indicate the amount of radiation they have been exposed to;
By controlling noise in factories, by segregating noisy equipment, by dampening vibration,
or by redesigning noisy equipment or by the use of vibration-absorbing material at certain
points. The employee may be asked to wear ear-coverings or ear-plugs;
By devoting adequate attention to lighting, temperature, and atmospheric conditions, by
controlling dust, fumes and gases, and by providing protective devices, clothing, goggles
and shields.
Employee Welfare
Welfare includes anything that is done for the comfort and improvement of employees and is provided
over and above the wages. Welfare helps in keeping the morale and motivation of the employees high
so as to retain the employees for longer duration. The welfare measures need not be in monetary terms
only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of
industrial harmony through infrastructure for health, industrial relations and insurance against disease,
accident and unemployment for the workers and their families.
Labor welfare entails all those activities of employer which are directed towards providing the employees
with certain facilities and services in addition to wages or salaries.
Labor welfare has the following objectives:
To provide better life and health to the workers
To make the workers happy and satisfied
To relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of
living of the workers.
The basic features of labor welfare measures are as follows:
Labor welfare includes various facilities, services and amenities provided to workers for improving their
health, efficiency, economic betterment and social status.
Welfare measures are in addition to regular wages and other economic benefits available to workers
due to legal provisions and collective bargaining
Labor welfare schemes are flexible and ever-changing. New welfare measures are added to the existing
ones from time to time.
Welfare measures may be introduced by the employers, government, employees or by any social or
charitable agency.
The purpose of labor welfare is to bring about the development of the whole personality of the workers
to make a better workforce.
Employee Welfare Schemes
Organizations provide welfare facilities to their employees to keep their motivation levels high. The
employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare
schemes. The statutory schemes are those schemes that are compulsory to provide by an organization
as compliance to the laws governing employee health and safety. These include provisions provided in
industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act
1962. The non-statutory schemes differ from organization to organization and from industry to industry.
STATUTORY WELFARE SCHEMES
The statutory welfare schemes include the following provisions:
Drinking Water: At all the working places safe hygienic drinking water should be provided.
Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to
be provided.
First aid appliances: First aid appliances are to be provided and should be readily assessable so that
in case of any minor accident initial medication can be provided to the needed employee.
Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and
factory premises and are also to be maintained in a neat and clean condition.
Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic
and nutritious food to the employees.
Spittoons: In every work place, such as ware houses, store places, in the dock area and office
premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic
condition.
Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely
during the night shifts.
Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the
stand pipe are provided in the port area in the vicinity of the work places.
Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the
factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes
and belongings.
Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water
supply, wash basins, toilets, bathrooms, etc.
NON STATUTORY SCHEMES
Many non-statutory welfare schemes may include the following schemes:
Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for
extensive health check-up
Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with
flexible working schedules. Flexible work schedules are initiated by employees and approved by
management to meet business commitments while supporting employee personal life needs
Employee Assistance Programs: Various assistant programs are arranged like external counseling
service so that employees or members of their immediate family can get counseling on various matters.
Harassment Policy: To protect an employee from harassment of any kind, guidelines are provided for
proper action and also for protecting the aggrieved employee.
Maternity & Adoption Leave Employees can avail maternity or adoption leaves. Paternity leave
policies have also been introduced by various companies.
Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of
employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.
Employee Referral Scheme: In several companies employee referral scheme is implemented to
encourage employees to refer friends and relatives for employment in the organization.
APPROACHES TO LABOUR WELFARE
Approaches to employee welfare refer to the beliefs and attitudes held by agencies which provide
welfare facilities. Some agencies provide welfare facilities inspired by religious faith, others as a
philanthropic duty and the like.
The various approaches to labour welfare reflect the attitudes and beliefs of the agencies which are
engaged in welfare activities. Welfare facilities may be provided on religious, philanthropic or some other
grounds. Moreover, the different approaches to labour welfare reflect the evolution of the concept of
welfare. In bygone days, the government of the land had to compel the owner of an industrial
establishment to provide such basic amenities as canteens, rest rooms, drinking water, good working
conditions, and so forth, for their employees. Such compulsion was necessary because the employer
believed in exploiting labour and treating it in an unfair manner. But times have changed, and the
concept of welfare, too, has undergone changes. Many progressive managements today provide
welfare facilities, voluntarily and with enlightened willingness and enthusiasm. In fact, welfare facilities
are not restricted to the workers alone. They have now been extended to the society in general. In other
words, labour welfare has been extended to include social welfare. Tata Steel Works at Jamshedpur, for
example, spends Rs 10 crore each year on social welfare. Brooke Bond have set up a free animal
welfare clinic at Gevrai, Aurangabad, under the direct charge of a qualified veterinary doctor. Jindal
Aluminium, Bangalore, maintains the famous Naturopathy and Yogic Sciences Centre and a public
school for the benefit of the public. The Jindal Scholarship Trust has been set up, under which deserving
students are given scholarships. The Hindustan Machine Tools has a big playground and a community
hall, which are let out for competitions and functions.
A study of the approaches to labour welfare is desirable for the management, the workers and the
general reader. For the general reader, a study of approaches is essential because his/her knowledge of
the subject is incomplete without a knowledge of these approaches, and a knowledge of approaches
enables the manager and the worker to have a better perspective on welfare work.
The approaches and their brief descriptions are (see Fig. 19.1):
1. The policing theory of labour welfare.
2. The religion theory of labour welfare.
3. The philanthropic theory of labour welfare.
4. The paternalistic theory of labour welfare.
5. The placating theory of labour welfare.
1. The public relations theory of labour welfare.
2. The functional theory of labour welfare.
3. The social theory of labour welfare.
Policing Theory
According to this view, the factory and other industrial workplaces provide ample opportunities for
owners and managers of capital to exploit workers in an unfair manner. This could be done by making
the labour work for long hours, by paying workers low wages, by keeping the workplaces in an
unhygienic condition, by neglecting safety and health provisions, and by ignoring the provision of
elementary human amenities, such as drinking water, latrines, rest rooms and canteens. Clearly, a
welfare state cannot remain a passive spectator of this limitless exploitation. It enacts legislation under
which managements are compelled to provide basic amenities to the workers. In short, the state
assumes the role of a policeman, and compels the managers of industrial establishments to provide
welfare facilities, and punishes the non-complier. This is the policing theory of labour welfare. 8
Religion Theory
The religion theory has two connotations, namely, the investment and atonement aspects. The
investment aspect of the religion theory implies that the fruits of today's deeds will be reaped tomorrow.
Any action, good or bad. is therefore treated as an investment. Inspired by this belief, some employers
plan and organise canteens and creches. The atonement aspect of the religion theory implies that the
present disabilities of a person are the result of the sins committed by him/her previously. He/she should
undertake to do good deeds now to atone or compensate for his/her sins. There is the story of a big Jain
employer who firmly held the belief that the provision of welfare facilities for workers was outside the
duties of the management. Whatever he did provide was under government compulsion and
supervision. It so happened, however, that the children born to him died as soon as they were born.
Later, his own health suffered. He felt that, as a compensation, or expiration or even as an investment in
a good deed (punyam), he should liberally contribute to the creche in the factory (as well as to other
child-welfare institutions), and also to medical services for his workers. Consequently, in this particular
factory, there came to exist an excellent creche and a well-organised dispensary.9
Philanthropic Theory
Philanthropy means affection for mankind. The philanthropic theory of labour welfare refers to the provision of good working conditions, creches and canteens out of pity on the part of the employers who want
to remove the disabilities of the workers. Robert Owen of England was a philanthropic employer, who
worked for the welfare of his workers. The philanthropic theory is more common in social welfare.
Student hostels, drinking water facilities, the rehabilitation of crippled persons, donations to religious and
educational institutions, and so forth are examples of philanthropic deeds.
Paternalistic Theory
According to the paternalistic theory, also called the trusteeship theory, of labour welfare, the industrialist
or the employer holds the total industrial estate, properties and the profits accruing from them, in trust.
The property which he/she can use or abuse as he/she likes is not entirely his/her own. He/she holds it
for his/her use, no doubt, but also for the benefit of his/her workers, if not for the whole society. For
several reasons, such as low wages, lack of education, and so forth the workers are at present unable to
take care of themselves. They are, therefore, like minors, and the employers should provide for their
well-being out of funds in their control. The trusteeship is not actual and legal, but it is moral and,
therefore, not less real.
Placating Theory
This theory is based on the assumption that appeasement pays when the workers are organised and
are militant. Peace can be bought by welfare measures. Workers are like children who are intelligent,
but not fully so. As crying children are pacified by sweets, workers should be pleased by welfare works.
Public Relations Theory
According to this theory, welfare activities are provided to create a good impression on the minds of the
workers and the public, particularly the latter. Clean and safe working conditions, a good canteen,
creche and other amenities, make a good impression on the workers, visitors and the public. Some
employers proudly take their visitors round the plant to show how well they have organised their welfare
activities.
Functional Theory
Also known as the efficiency theory of labour welfare, the functional theory implies that welfare facilities
are provided to make the workers more efficient. If workers are fed properly, clothed adequately and
treated kindly, and if the conditions of their work are congenial, they will work efficiently. Welfare work is
a means of securing, preserving and increasing the efficiency of labour.10
Social Theory
The social obligation of an industrial establishment has been assuming great significance these days.
The social theory implies that a factory is morally bound to improve the conditions of the society in
addition to mproving the condition of its employees. Labour welfare, as mentioned earlier, is gradually
becoming social welfare.
Industrial Disputes
The causes of industrial disputes can be broadly classified into two categories:
economic and non-economic causes. The economic causes will include issues
relating to compensation like wages, bonus, allowances, and conditions for work,
working hours, leave and holidays without pay, unjust layoffs and retrenchments.
The non economic factors will include victimization of workers, ill treatment by
staff members, sympathetic strikes, political factors, indiscipline etc.
Wages and allowances: Since the cost of living index is increasing, workers
generally bargain for higher wages to meet the rising cost of living index and to
increase their standards of living. In 2002, 21.4% of disputes were caused by
demandof higher wages and allowances. This percentage was 20.4% during 2003
and during 2004 increased up to 26.2%. In 2005, wages and allowances accounted
for 21.8% of disputes.
Personnel and retrenchment: The personnel and retrenchment have also been
an important factor which accounted for disputes. During the year 2002, disputes
caused by personnel were 14.1% while those caused by retrenchment and layoffs
were 2.2% and 0.4% respectively. In 2003, a similar trend could be seen, wherein
11.2% of the disputes were caused by personnel, while 2.4% and 0.6% of disputes
were caused by retrenchment and layoffs. In year 2005, only 9.6% of the disputes
were caused by personnel, and only 0.4% were caused by retrenchment.
Indiscipline and violence: From the given table, it is evident that the number of
disputes caused by indiscipline has shown an increasing trend. In 2002, 29.9% of
disputes were caused because of indiscipline, which rose up to 36.9% in 2003.
Similarly in 2004 and 2005, 40.4% and 41.6% of disputes were caused due to
indiscipline respectively. During the year 2003, indiscipline accounted for the
highest percentage (36.9%) of the total time-loss of all disputes, followed by causegroups wage and allowance and personnel with 20.4% and11.2% respectively. A
similar trend was observed in 2004 where indiscipline accounted for 40.4% of
disputes.
Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of
the disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6%
in 2004 and 2005 respectively.
Leave and working hours: Leaves and working hours have not been so
important causes of industrial disputes. During 2002, 0.5% of the disputes were
because of leave and hours of work while this percentage increased to 1% in 2003.
During 2004, only 0.4% of the disputes were because of leaves and working hours.
Miscellaneous: The miscellaneous factors include
- Inter/Intra Union Rivalry
- Charter of Demands
- Work Load
- Standing orders/rules/service conditions/safety measures
- Non-implementation of agreements and awards etc.
Strikes
A strike is a very powerful weapon used by trade unions and other labor associations
to get their demands accepted. It generally involves quitting of work by a group of
workers for the purpose of bringing the pressure on their employer so that their
demands get accepted. When workers collectively cease to work in a particular
industry, they are said to be on strike.
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. This definition throws light
on a few aspects of a strike. Firstly, a strike is a referred to as stoppage of work by a
group of workers employed in a particular industry. Secondly, it also includes the
refusal of a number of employees to continue work under their employer.
In a strike, a group of workers agree to stop working to protest against something they
think is unfair where they work. Labors withhold their services in order to pressurize
their employment or government to meet their demands. Demands made by strikers
can range from asking for higher wages or better benefits to seeking changes in the
workplace environment. Strikes sometimes occur so that employers listen more
carefully to the workers and address their problems.
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
TYPES OF STRIKE
1)
Economic Strike: Under this type of strike, labors stop their work to enforce
their economic demands such as wages and bonus. In these kinds of strikes, workers
ask for increase in wages, allowances like traveling allowance, house rent allowance,
dearness allowance, bonus and other facilities such as increase in privilege leave and
casual leave.
2)
Sympathetic Strike: When workers of one unit or industry go on strike in
sympathy with workers of another unit or industry who are already on strike, it is called
a sympathetic strike. The members of other unions involve themselves in a strike to
support or express their sympathy with the members of unions who are on strike in
other undertakings. The workers of sugar industry may go on strike in sympathy with
their fellow workers of the textile industry who may already be on strike.
3)
General Strike: It means a strike by members of all or most of the unions in a
region or an industry. It may be a strike of all the workers in a particular region of
industry to force demands common to all the workers. These strikes are usually
intended to create political pressure on the ruling government, rather than on any one
employer. It may also be an extension of the sympathetic strike to express generalized
protest by the workers.
4)
Sit down Strike: In this case, workers do not absent themselves from their place
of work when they are on strike. They keep control over production facilities. But do
not work. Such a strike is also known as 'pen down' or 'tool down' strike. Workers
show up to their place of employment, but they refuse to work. They also refuse to
leave, which makes it very difficult for employer to defy the union and take the workers'
places. In June 1998, all the Municipal Corporation employees in Punjab observed a
pen down strike to protest against the non-acceptance of their demands by the state
government.
5)
Slow Down Strike: Employees remain on their jobs under this type of strike.
They do not stop work, but restrict the rate of output in an organized manner. They
adopt go-slow tactics to put pressure on the employers.
6)
Sick-out (or sick-in): In this strike, all or a significant number of union members
call in sick on the same day. They dont break any rules, because they just use their
sick leave that was allotted to them on the same day. However, the sudden loss of so
many employees all on one day can show the employer just what it would be like if
they really went on strike.
7)
Wild cat strikes: These strikes are conducted by workers or employees without
the authority and consent of unions. In 2004, a significant number of advocated went
on wildcat strike at the City Civil Court premises in Bangalore. They were protesting
against some remarks allegedly made against them by an Assistant Commissioner
Lockouts
A lockout is a work stoppage in which an employer prevents employees from working.
It is declared by employers to put pressure on their workers. This is different from a
strike, in which employees refuse to work. Thus, a lockout is employers weapon while
a strike is raised on part of employees. Acc to Industrial Disputes Act 1947, lock-out
means the temporary closing of a place of employment or the suspension of work or
the refusal by an employer to continue to employ any number of persons employed by
him.
A lockout may happen for several reasons. When only part of a trade union votes to
strike, the purpose of a lockout is to put pressure on a union by reducing the number
of members who are able to work.For example, if a group of the workers strike so that
the work of the rest of the workers becomes impossible or less productive, the
employer may declare a lockout until the workers end the strike. Another case in which
an employer may impose a lockout is to avoid slowdowns or intermittent workstoppages. Occupation of factories has been the traditional method of response to
lock-outs by the workers' movement.
PICKETING
When workers are dissuaded from work by stationing certain men at the factory gates,
such a step is known as picketing. If picketing does not involve any violence, it is
perfectly legal. Pickets are workers who are on strike that stand at the entrance to their
workplace. It is basically a method of drawing public attention towards the fact that
there is a dispute between the management and employees.
Employee Discipline
Discipline is the key to success. Theodore Roosevelt has said With self-discipline almost
everything is possible. Self discipline makes employee realize what is required at work.
Discipline can be positively related to performance. It is the bridge between goals and
accomplishments. Effective discipline should be aimed at the behavior, and not at the
employee personality. This is because the reason for discipline is to improve performance
rather than punishing the employee.
Factors necessary for effective disciplinary system include:
Training of supervisors is necessary: Supervisors and mangers need to be trained on when and
how discipline should be used. It is necessary to provide training on counseling skills as these
skills are used while dealing with problem employees. Moreover, discipline decisions taken by
trained supervisors are considered fair by both employees and managers.
Centralization of discipline: Centralized means that the discipline decisions should be uniform
throughout the organization. The greater the uniformity, higher will be the effectiveness of
discipline procedure.
Impersonal discipline: Discipline should be handled impersonally. Managers should try to
minimize the ill feelings arising out of the decisions by judging the offensive behavior and not
by judging the person. Managers should limit their emotional involvement in the disciplinary
sessions.
Review discipline decisions: The disciplinary decisions must be reviewed before being
implemented. This will ensure uniformity and fairness of the system and will minimize the
arbitrariness of the disciplinary system.
Notification of conduct that may result in discipline: Actions that lead to misconduct can be
listed and documented so the employees are aware of such actions. This will unable them to
claim that they have not been notified, in advance, regarding the same.
Information regarding penalties: The employer should define the penalties and other actions
like warnings, reprimands, discharge and dismissal well in advance. All these action plans must
be communicated to the employees.
Grievance In Industry
Grievance in Industry
Grievance means any type of dissatisfaction or discontentments arising out of factors related to
an employees job which he thinks are unfair. A grievance arises when an employee feels that
something has happened or is happening to him which he thinks is unfair, unjust or inequitable.
In an organization, a grievance may arise due to several factors such as:
1. Violation of managements responsibility such as poor working conditions
2. Violation of companys rules and regulations
3. Violation of labor laws
4. Violation of natural rules of justice such as unfair treatment in promotion, etc.
Various sources of grievance may be categorized under three heads: (i) management policies, (ii)
working conditions, and (iii) personal factors
1. Grievance resulting from management policies include:
Wage rates
Leave policy
Overtime
Lack of career planning
Role conflicts
Lack of regard for collective agreement
2.
Grievance Procedure
Grievance procedure is a formal communication between an employee and the management
designed for the settlement of a grievance. The grievance procedures differ from organization to
organization.
1.
Open door policy
2.
Step-ladder policy
Open door policy: Under this policy, the aggrieved employee is free to meet the top executives
of the organization and get his grievances redressed. Such a policy works well only in small
organizations. However, in bigger organizations, top management executives are usually busy
with other concerned matters of the company. Moreover, it is believed that open door policy is
suitable for executives; operational employees may feel shy to go to top management.
Step ladder policy: Under this policy, the aggrieved employee has to follow a step by step
procedure for getting his grievance redressed. In this procedure, whenever an employee is
confronted with a grievance, he presents his problem to his immediate supervisor. If the
employee is not satisfied with superiors decision, then he discusses his grievance with the
departmental head. The departmental head discusses the problem with joint grievance
committees to find a solution. However, if the committee also fails to redress the grievance, then
it may be referred to chief executive. If the chief executive also fails to redress the grievance,
then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding
on both the parties.
GRIEVANCE PROCEDURE IN INDIAN INDUSTRY
The 15th session of Indian Labor Conference held in 1957 emphasized the need of an established
grievance procedure for the country which would be acceptable to unions as well as to
management. In the 16th session of Indian Labor Conference, a model for grievance procedure
was drawn up. This model helps in creation of grievance machinery. According to it, workers
representatives are to be elected for a department or their union is to nominate them.
Management has to specify the persons in each department who are to be approached first and
the departmental heads who are supposed to be approached in the second step. The Model
Grievance Procedure specifies the details of all the steps that are to be followed while redressing
grievances. These steps are:
STEP 1: In the first step the grievance is to be submitted to departmental representative, who is a
representative of management. He has to give his answer within 48 hours.
STEP 2: If the departmental representative fails to provide a solution, the aggrieved employee
can take his grievance to head of the department, who has to give his decision within 3 days.
STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head, he
can take the grievance to Grievance Committee. The Grievance Committee makes its
recommendations to the manager within 7 days in the form of a report. The final decision of the
management on the report of Grievance Committee must be communicated to the aggrieved
employee within three days of the receipt of report. An appeal for revision of final decision can
be made by the worker if he is not satisfied with it. The management must communicate its
decision to the worker within 7 days.
STEP 4: If the grievance still remains unsettled, the case may be referred to voluntary
arbitration.
The use of binding and non-binding mediation has increased greatly in both the private and
public sectors, particularly for legal and business disputes. Many companies have chosen to
insert mediation clauses into standard contracts as a preliminary dispute resolution step before
arbitration or litigation.
Mediation can also be made of present or future disputes where the parties seek amicable
settlement of such disputes by an agreement to mediate.
To provide finality to a dispute resolution clause, many parties include an arbitration provision,
in the event their dispute is not settled during mediation. Essentially, an arbitration clause follows
the mediation clause, and requires the parties to submit all disputes not settled in mediation to a
final and binding arbitration. The mediator should never serve as an arbitrator in a subsequent
arbitration, since he or she will have been exposed to confidential communications during the
mediation process.
Mediation proceedings are settlement negotiations, and all offers, promises, conduct and
statements, whether written or oral, made in the course of the proceedings, are inadmissible in
any litigation or arbitration of their dispute. However, evidence that is otherwise admissible shall
not be rendered inadmissible as a result of its use in the mediation session. Any information
disclosed to the mediator in a private meeting shall remain confidential unless the party agrees
that it may be disclosed.
Arbitration
Arbitration is a legal process, which takes place outside the courts, but still results in a final and
legally binding decision similar to a court judgment. Parties involved in arbitration are
effectively opting out of the court system and submitting their case for resolution by a neutral,
third party arbitrator. Arbitration is generally faster, less expensive and more informal than going
to court. It also has the advantage of being private and confidential.
Arbitration is a legal process, which results in an award being issued by the arbitrator or
arbitrators. Arbitration awards are final and binding on the parties and can only be challenged in
very exceptional circumstances. An award has a status very much like a court judgment and is
enforceable in a very similar manner
by a court. The third parties, called arbitrators, are appointed by or on behalf of the parties in
dispute. The arbitration is conducted in accordance with the terms of the parties' arbitration
agreement, which is usually found in the provisions of a commercial contract between the
parties.
For an arbitration to take place, the disputing parties must agree to take their dispute to
arbitration. In practice, this agreement is often made before the dispute arises and is included as a
clause in their commercial contract. In signing a contract with an arbitration clause, the parties
are agreeing that their dispute will not be heard by a court but by a private individual or a panel
of several private individuals. If parties have agreed to arbitration, they will generally have to go
to arbitration rather than court as the courts will normally refuse to hear their case by staying it to
force the reluctant party to honour their agreement to arbitrate.
Advantages
Among the available dispute resolution alternatives to the courts, arbitration is by far the most
commonly used internationally. The reasons for this are clear:
Final, binding decisions
While several mechanisms can help parties reach an amicable settlement - for example through
mediation or conciliation - all of them depend, ultimately, on the goodwill and cooperation of the
parties. A final and enforceable decision can generally be obtained only by recourse to the courts
or by arbitration. Because arbitral awards are not subject to appeal, they are much more likely to
be final than the judgments of courts of first instance. Although arbitral awards may be subject to
being challenged, the grounds of challenge available against arbitral awards are limited. The
award given by the arbitrator is equivalent to a decree of a court of law and the same can be
executed directly, without making it a decree of the court.
International recognition of arbitral awards
Arbitral awards enjoy much greater international recognition than judgments of national courts.
About 120 countries have signed the 1958 United Nations Convention on the Recognition and
Enforcement of Foreign Arbitral Awards, known as the "New York Convention". The Convention
facilitates enforcement of awards in all contracting states. There are several other multilateral
and bilateral arbitration conventions that may also help enforcement.
Neutrality
In arbitral proceedings, parties can place themselves on an equal footing in five key respects:
Place of arbitration
Language used
Procedures or rules of law applied
Nationality
Legal representation
Arbitration may take place in any country, in any language and with arbitrators of any
nationality. With this flexibility, it is generally possible to structure a neutral procedure offering
no undue advantage to any party.
Specialized competence of arbitrators
Judicial systems do not allow the parties to a dispute to choose their own judges. In contrast,
arbitration offers the parties the unique opportunity to designate persons of their choice as
arbitrators, provided they are independent. This enables the parties to have their disputes
resolved by people who have specialized competence in the relevant field.
Speed and economy
Arbitration is faster and less expensive than litigation in the courts. Although a complex
international dispute may sometimes take a great deal of time and money to resolve, even by
arbitration, the limited scope for challenge against arbitral awards, as compared with court
judgments, offers a clear advantage. Above all, it helps to ensure that the parties will not
subsequently be entangled in a prolonged and costly series of appeals. Furthermore, arbitration
offers the parties the flexibility to set up proceedings that can be conducted as quickly and
economically as the circumstances allow.
Confidentiality
Arbitration hearings are not public, and only the parties themselves receive copies of the awards.
Employee Retention
Employee retention is a process in which the employees are encouraged to remain with
the organization for the maximum period of time or until the completion of the project.
Employee retention is beneficial for the organization as well as the employee.
Employees today are different. They are not the ones who dont have good
opportunities in hand. As soon as they feel dissatisfied with the current employer or the
job, they switch over to the next job. It is the responsibility of the employer to retain their
best employees. If they dont, they would be left with no good employees. A good
employer should know how to attract and retain its employees. Retention involves five
major things:
Employee retention would require a lot of efforts, energy, and resources but the results
are worth it.
COMPENSATION
Compensation constitutes the largest part of the employee retention process. The
employees always have high expectations regarding their compensation packages.
Compensation packages vary from industry to industry. So an attractive compensation
package plays a critical role in retaining the employees.
Compensation includes salary and wages, bonuses, benefits, prerequisites, stock
options, bonuses, vacations, etc. While setting up the packages, the following
components should be kept in mind:
Salary and monthly wage: It is the biggest component of the compensation package.
It is also the most common factor of comparison among employees. It includes
Basic wage
House rent allowance
Dearness allowance
City compensatory allowance
Salary and wages represent the level of skill and experience an individual has. Time to
time increase in the salaries and wages of employees should be done. And this
increase should be based on the employees performance and his contribution to the
organization.
Bonus: Bonuses are usually given to the employees at the end of the year or on a
festival.
Economic benefits: It includes paid holidays, leave travel concession, etc.
Long-term incentives: Long term incentives include stock options or stock grants.
These incentives help retain employees in the organization's startup stage.
Health insurance: Health insurance is a great benefit to the employees. It saves
employees money as well as gives them a peace of mind that they have somebody to
take care of them in bad times. It also shows the employee that the organization cares
about the employee and its family.
After retirement: It includes payments that an Employee gets after he retires like EPF
(Employee Provident Fund) etc.
Miscellaneous compensation: It may include employee assistance programs (like psychological
counseling, legal assistance etc), discounts on company products, use of a company cars, etc.
ORGANIZATION ENVIRONMENT
It is not about managing retention. It is about managing people. If an organization
manages people well, employee retention will take care of itself. Organizations should
focus on managing the work environment to make better use of the available human
assets.
People want to work for an organization which provides
Leading technologies
Trust
Types of environment the employee needs in an organization
Learning environment: It includes continuous learning and improvement of the
individual, certifications and provision for higher studies, etc.
Support environment: Organization can provide support in the form of work-life
balance. Work life balance includes:
Flexible hours
Telecommuting
Dependent care
Alternate work schedules
Vacations
Wellness
Work environment: It includes efficient managers, supportive co-workers, challenging
work, involvement in decision-making, clarity of work and responsibilities, and
recognition.
Lack or absence of such environment pushes employees to look for new opportunities.
The environment should be such that the employee feels connected to the organization
in every respect.
GROWTH AND CAREER
Growth and development are the integral part of every individuals career. If an
employee can not foresee his path of career development in his current organization,
there are chances that hell leave the organization as soon as he gets an opportunity.
The important factors in employee growth that an employee looks for himself are:
Work profile: The work profile on which the employee is working should be in sync with
his capabilities. The profile should not be too low or too high.
Personal growth and dreams: Employees responsibilities in the organization should
help him achieve his personal goals also. Organizations cannot keep aside the
individual goals of employees and foster organizations goals. Employees priority is to
work for themselves and later on comes the organization. If hes not satisfied with his
growth, hell not be able to contribute in organization growth.
Training and development: Employees should be trained and given chance to improve
and enhance their skills. Many employers fear that if the employees are well rained,
theyll leave the organization for better jobs. Organization should not limit the resources
on which organizations success depends. These trainings can be given to improve
many skills like:
Communications skills
Technical skills
In-house processes and procedures improvement related skills
C or customer satisfaction related skills
Special project related skills
Need for such trainings can be recognized from individual performance reviews,
individual meetings, employee satisfaction surveys and by being in constant touch with
the employees.
SUPPORT
Lack of support from management can sometimes serve as a reason for employee
retention. Supervisor should support his subordinates in a way so that each one of them
is a success. Management should try to focus on its employees and support them not
only in their difficult times at work but also through the times of personal crisis.
Management can support employees by providing them recognition and appreciation.
Employers can also provide valuable feedback to employees and make them feel
valued to the organization
The feedback from supervisor helps the employee to feel more responsible, confident
and empowered. Top management can also support its employees in their personal
crisis by providing personal loans during emergencies, childcare services, employee
assistance programs, counseling services, et al.
Employers can also support their employees by creating an environment of trust and
inculcating the organizational values into employees. Thus employers can support their
employees in a number of ways as follows:
By providing feedback
By counseling them
Turnover leads to more turnovers: When an employee terminates, the effect is felt
throughout the organization. Co-workers are often required to pick up the slack. The
unspoken negativity often intensifies for the remaining staff.
Goodwill of the company: The goodwill of a company is maintained when the attrition
rates are low. Higher retention rates motivate potential employees to join the
organization.
Regaining efficiency: If an employee resigns, then good amount of time is lost in hiring
a new employee and then training him/her and this goes to the loss of the company
directly which many a times goes unnoticed. And even after this you cannot assure us
of the same efficiency from the new employee
These practices can be categorized in 3 levels: Low, medium and high level.
5)
Dependents care assistance
6)
Medical care reimbursement
7)
Providing conveniences at workplace
8)
Gymnasiums
9)
Athletic membership program
10) Providing training and development and personal growth opportunities
Sabbatical programs
Professional skills development
Individualized career guidance
High Level Strategies
1)
Promoting Work/Life Effectiveness
2)
Develop flexible schedules
3)
Part-time schedules
4)
Extended leaves of absence
5)
Develop Support Services
6)
On-site day care facility etc.
7)
Understand employee needs: This can be done through proper management style
and culture
8)
Listen to the employee and show interest in ideas Appreciate new ideas and
reward risk-taking
9)
Show support for individual initiative
10) Encourage creativity
11) Encouraging professional training and development and/or personal growth
opportunities: It can be done through:
Mentoring programs
Performance feedback programs
Provide necessary tools to the employees to achieve their professional and personal
goals
Getting the most out of employee interests and talents
Higher study opportunities for employees
Vocational counseling
Offer personalized career guidance to employees
12) Provide an environment of trust: Communication is the most important and
effective way to develop trust.
13) Suggestion committees can be created
14) Open door communication policy can be followed
15) Regular feedbacks on organizations goals and activities should be taken from the
employees by:
Management communications
Intranet and internet can be used as they provide 24X7 access to the information
Newsletters, notice boards, etc.
16) Hire the right people from the beginning: employee retention is not a process that
begins at the end. The process of retention begins right from the start of the recruitment
process.
17) The new joinees should fit with the organizations culture. The personality,
leadership characteristics of the candidate should be in sync with the culture of the
hiring organization.
18) Referral bonus should be given to the employees for successful hires. They are
the best source of networking.
19) Proper training should be given to the managers on interview and management
techniques.
20) An internship program can be followed to recruit the fresh graduates.
Compensation Management
Employees, in exchange of their work, generally expect some appreciation. Money is considered
the most important motivation for employees, though non-financial incentives work efficiently.
The goals of compensation management are to design the lowest-cost pay structure that will
attract, motivate and retain competent employees.
Compensation is what employees receive in exchange for their contribution to the organization.
Compensation management helps the organization obtain, maintain and retain a productive
workforce.
The increasing competitiveness of the labour market and turnover of employees had resulted in
nightmare in compensation planning. Apart from this, the growing demands of the employees
and competitive salaries offered by multinational companies had almost resulted in a
compensation war in certain industries.
Therefore, the human resources managers and tax experts have to evolve proper compensation
planning for High end and qualified employees. The components of compensation have to be
devised in such a way that, it focuses on the growing demands of employees while retaining the
competitiveness and profitability of the company.
Objective of Compensation
The objective of the compensation function is to create a system of rewards that is equitable to
the employer and employee alike. The desired outcome is an employee who is attracted to the
work and motivated to do a good job for the employer. Patton suggests that in compensation
policy there are seven criteria for effectiveness. Compensation should be:
Adequate Minimal governmental, union, and managerial levels should be met.
Equitable Each person should be paid fairly, in line with his or her effort, abilities, and training.
Balanced Pay, benefits, and other rewards should provide a reasonable total reward package.
Cost-effective Pay should not be excessive, considering what the organization can afford to pay.
Secure Pay should be enough to help an employee feel secure and aid him or her in satisfying
basic needs.
Incentive-providing Pay should motivate effective and productive work.
Acceptable to the employee The employee should understand the pay system and feel it is a
reasonable system for the enterprise and himself or herself.
A majority of human resources professionals appear to believe that employees are likely to
overreport the importance of pay in employee surveys. However, research suggests the opposite
is actually true. We review evidence showing the discrepancies between what people say and do
with respect to pay. We then discuss why pay is likely to be such an important general motivator,
as well as a variety of reasons why managers might underestimate its importance. We note that
pay is not equally important in all situations or to all individuals, and identify circumstances
under which pay is likely to be more (or less) important to employees.
Some employees are motivated by money. In fact, most are motivated by money; at least for their
basic needs. Employee motivation through compensation can come in the form of raises,
performance bonuses, commissions, profit sharing, or any number of "extra benefits" like,
automobiles, vacations, or other tangible items purchased and used as rewards.
I noticed an interesting program in a hotel where I recently stayed. They have a sophisticated
system for rewarding employees based on customer feedback. Throughout the hotel, they have
placed customer feedback forms and boxes for depositing the forms. When customers comment
on the performance of a hotel employee, the employee accumulates points that can be used to
purchase rewards like trips, gifts, and other incentives.
What the Research Shows
Behavioral scientists, employee and management surveys, and my client experiences show
compensation can be a strong driver of employee behavior under the right circumstances when
properly designed.
In a survey of over 1500 compensation and productivity professionals by the American
Compensation Association and the American Productivity Center various types of
compensation or rewards systems that they utilized were rated as having a "Positive" or
"Very Positive" impact on performance in 66% to 89% of the companies where the
companies used specific techniques such as gain sharing, small group incentives, profit sharing,
individual incentives, and lump sum bonuses (source: "People, Performance, and Pay").
In a national survey of 1200 randomly selected U.S. employees across many different types and
sizes of companies 54% of employees rated direct financial compensation as "very
important" or "extremely important" to motivation. When stratified by age group there was
statistically insignificant difference by age group. Gen X and Gen Y were no different than Baby
Boomers in this respect (source: "The Rewards of Work - What Employees Value")
In a national survey of 2500 employees, 84% of those who understood their organization's
reward/performance link believe they can help make a difference. If they also believe that the
company will share its success when the strategy is achieved, 91% say they are motivated to
help the company succeed (source: Workplace Index)
In a study of 663 companies with performance reward compensation plans covering 1.3 million
employees and a broad section of the workforce of each company (not just managers and
salespeople) by the American Compensation Association, they found that at the median,
organizations earned $2.34 for every dollar they spent on payouts; thus a close
approximation of the net return on plan investment is 134% (source: "Organizational
Performance and Rewards").
HRA
HRA stands for House Rent Allowance, it is an allowance that almost every salaried employee
receives as part of there salary package from there employer to meet the cost of rent that they pay
for their home. In other words, HRA is a compulsory part of salary of an individual which every
salaried person receives irrespective of the type of property he resides in. Which means, if your
employer chooses to offer HRA then you will get this as part of your salary whether you stay in a
rented house or reside in your own house. As being a taxable part of salary, HRA gets special
treatment in income tax law and is exempt from income tax to a certain extent.
Conveyance
Organizations provide for cab facilities to their employees. Few organizations also provide
vehicles and petrol allowances to their employees to motivate them.
Holidays and Leave
Payment for holidays and leave is also included in direct compensation. Leave includes sick
time, funeral leave, maternity leave, military duty or other paid time away from work.
Bonuses
All forms of bonuses are included in direct compensation. Bonuses are compensation for
employees for work performed; they are paid in addition to salary or wages. Bonuses are
considered compensation if (per the IRS) they "arise out of an employment relationship or are
associated with the performance of services." Bonuses are considered taxable to employees, but
are considered an expense of doing business and are, in most cases, a tax benefit to the employer.
Other Allowances
Other paid or reimbursed allowances are included in direct compensation, including ravel
(including meals) and some medical care when it is paid by the employee and reimbursed.
Special Allowance
Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses,
reduced interest loans; insurance, club memberships, etc are provided to employees to provide
them social security and motivate them which improve the organizational productivity.
Over-reliance on salary as the only significant method of financial rewards
Overtime Policy
Employees should be provided with the adequate allowances and facilities during their overtime,
if they happened to do so, such as transport facilities, overtime pay, etc.
Hospitalization
The employees should be provided allowances to get their regular check-ups, say at an interval
of one year. Even their dependents should be eligible for the medi-claims that provide them
emotional and social security.
Insurance
Organizations also provide for accidental insurance and life insurance for employees. This gives
them the emotional security and they feel themselves valued in the organization.
Leave Travel
The employees are provided with leaves and travel allowances to go for holiday with their
families. Some organizations arrange for a tour for the employees of the organization. This is
usually done to make the employees stress free.
Retirement Benefits
Organizations provide for pension plans and other benefits for their employees which benefits
them after they retire from the organization at the prescribed age.
Holiday Homes
Organizations provide for holiday homes and guest house for their employees at different
locations. These holiday homes are usually located in hill station and other most wanted holiday
spots. The organizations make sure that the employees do not face any kind of difficulties during
their stay in the guest house.
Flexible Timings
Organizations provide for flexible timings to the employees who cannot come to work during
normal shifts due to their personal problems and valid reasons.
Numerous employees related factors also influence his or her compensation. These include rhe
following:
PerformanceIt is always rewarded wirh pay increase and as a result it motivates the workers
to do better in future.
ExperienceThis makes a person perfect by providing valuable insights and thus rewarded
also.
SeniorityTrade unions always prefer this objective criterion for pay rises.
PotentialFirms also pay their employees, especially young ones on the basis of their potential.
Job requirements
Wages arc also influenced by the requirements of a job such as physical and mental requirement.
Jobs, which demand more skill, responsibility, efforts and are of hazardous in nature, will carry
high wage tag with them.
Job evaluation
Job evaluation establishes a consistent and systematic relationship among base compensation
rates for all jobs. In other words, it establishes the satisfactory wage differentials.
Organisation's strategy
The organisation's strategy regarding wages also influences employee compensation. For
example, an organisation, which wants rapid growth, will set higher wages than competitors. On
the other hand, organisations that want smooth going and just maintain the current earning will
pay average or below average.
External Factors
These factors include the following:
Laws and Regulations
Laws and regulations impact the remuneration of employees in many areas, such as:
Work hours and compulsory time-off (paid and unpaid)
Minimum wage
Overtime
Compulsory bonuses
Employment at will
Labor market
Official laws on wage and salary, labor contract, payment time, wage payment delay, working
insurance, and so on.
Peoples standard of living in the areas where the offices of the company are.
Peoples living and consuming customary.
The average wage rate in the labor market of similar work.
Economy
The state of economy also influences the wage and salary-fixation. Wage rates will he different
in a stable economy than in a depressed economy. In case of depressed economy there may be
increase in supply of labour and this results in the fixarion of lower wage rates.
Technological changes
Technological changes also influence the fixation of wage levels. Due to the advancements in the
technology there may be shortage of skilled manpower in that area. So, the organisation will
provide high wages for skilled personnel. For example, information technology (IT) industry in
India and abroad is suffering from the shortage of IT experts.
knowing that up front will help you in setting your commission, incentive, bonus and raise
strategies up front.
Compensating employees is a delicate balance between meeting the employees' expectations and
the company's financial goals. Assessing these five areas when putting together or evaluating
your compensation program will help you ensure you're proactively moving your company in the
right direction. Our employees are our most valuable assets and we should make sure we're
treating them that way.
strategic HRM
Management Process The five basic functions of management are: planning, organizing,
staffing, leading, and controlling.
Human Resource The staffing functions of the management process. Or, the policies
Management and practices needed to carry out the "people" or human resource
aspects of a management position, including recruiting, screening, training, rewarding, and
appraising.
Authority The right to make decisions, to direct the work of others, and to give orders.
Line Manager Authorized to direct the work of subordinates-they're always someone's
boss. In addition, line managers are in charge of accomplishing the organization's basic
goals.
Staff Manager Assist and advise line managers in accomplishing the basic goals. HR
managers are generally staff managers.
Line Authority The authority to direct the activities of the people in his or her own
department.
Implied Authority The authority exerted by virtue of others' knowledge that he or she has
access to top management.
Functional Control The authority exerted by a personnel manager as a coordinator of
personnel activities.
Employee Advocacy HR must take responsibility for clearly defining how management
should be treating employees, make sure employees have the mechanisms required to
contest unfair practices, and represent the interests of employees within the framework of
its primary obligation to
senior management.
Globalization The tendency of firms to extend their sales or manufacturing to new markets
abroad.
Competitive Advantage Factors that allow an organization to differentiate its product or
service from competitors to increase market share.
Cost Leadership The enterprise aims to become the low-cost leader in an industry.
Differentiation A firm seeks to be unique in its industry along dimensions that are widely
valued by buyers.
Charts
Position Replacement A card prepared for each position in a company to show possible replacement
candidates and their qualifications.
Cards
Job Posting Posting notices of job openings on company bulletin boards is an effective recruiting
method.
Occupational Market The Bureau of Labor Statistics of the U.S. Department of Labor publishes
projections of labor supply and demand for various occupations, as do other agencies.
Conditions
Application Form The form that provides information on education, prior work record, and skills.
Interviewing candidates
Non-directive Interview An unstructured conversational-style interview. The interviewer pursues points
of interest as they come up in response to questions.
Directive Interview An interview following a set sequence of questions.
Stress Interview An interview in which the applicant is made uncomfortable by a series of often rude
questions. This technique helps identify hypersensitive applicants and those with low or high stress
tolerance.
Appraisal Interview A discussion following a performance appraisal in which supervisor and employee
discuss the employee's rating and possible remedial actions.
Situational Interview A series of job-related questions which focuses on how the candidate would
behave in a given situation.
Job Related Interview A series of job-related questions which focuses on relevant past job-related
behaviors.
Structured Sequential An interview in which the applicant is interviewed sequentially by
Interview several supervisors and each rates the applicant on a standard form.
Panel Interview An interview in which a group of interviewers questions the applicant. Candidate-Order
Error An error of judgment on the part of the interviewer due to interviewing one or more
Appraising performance
Graphic Rating Scale A scale that lists a number of traits and a range of performance for each. The
employee is then rated by identifying the score that best describes his or her performance for each trait.
Alternation Ranking Method Ranking employees from best to worst on a particular trait.
Paired Comparison Ranking employees by making a chart of all possible pairs of the employees for
each trait and indicating which is the better Employee of the pair.
Forced Distribution Method Similar to grading on a curve; predetermined percentages of ratees are
placed in various categories.
Critical Incident Method Keeping a record of uncommonly good or undesirable examples of an
employee's work-related behavior and reviewing it with the employee at predetermined times.
Behaviorally Anchored An appraisal method that aims at combining the benefits of
Rating Scale (BARS) narrative and quantified ratings by anchoring a quantified scale with specific
narrative examples of good and poor performance.
Management By Involves setting specific measurable goals with each employee
Objectives (MBO) and then periodically reviewing the progress made.
Unclear Performance An appraisal scale that is too open to interpretation; instead,
Standards include descriptive phrases that define each trait and what is meant by standards like "good"
or "unsatisfactory."
Halo Effect In performance appraisal, the problem that occurs when a supervisor's rating of a
subordinate on one trait biases the rating of that person on other traits.
Central Tendency A tendency to rate all employees the same way, avoiding the high and the low ratings.
Strictness / Leniency Bias The problem that occurs when a supervisor has a tendency to rate all
subordinates either high or low.
Bias The tendency to allow individual differences such as age, race,
and sex to affect the appraisal rates these employees receive.
Appraisal Interviews An interview in which the supervisor and subordinate review the appraisal and
make plans to remedy deficiencies and reinforce strengths.
Layoff A situation in which there is a temporary shortage of work and employees are told there is no work
for them but that management intends to recall them when work is again available.
Bumping/Layoff Detailed procedures that determine who will be laid off if no work is available; generally
allows employees to use their seniority to remain on the job.
Voluntary Reduction in An alternative to layoffs in which all employees agree to
Pay Plan reductions in pay to keep everyone working.
Voluntary Time Off An alternative to layoffs in which some employees agree to take
time off to reduce the employer's payroll and avoid the need for a layoff.
Rings Of Defense An alternative layoff plan in which temporary supplemental employees are hired with
the understanding that they may be laid off at any time.
Downsizing Refers to the process of reducing, usually dramatically, the number of people mployed by
the firm.
Retirement The point at which a person gives up one's work, usually between the ages of 60 to 65, but
increasingly earlier today due to firms' early retirement incentive plans.
Preretirement Counseling Counseling provided to employees who are about to retire, which covers
matters such as benefits advice, second careers, and so on.
Benefits Indirect financial payments given to employees. They may include health and life insurance,
vacation, pension, education plans, and discounts on company products, for instance.
Supplemental Pay Benefits Benefits for time not worked such as unemployment insurance, vacation
and holiday pay and sick pay.
Unemployment Insurance Provides weekly benefits if a person is unable to work through some fault
other than his or her own.
Sick Leave Provides pay to an employee when he or she is out of work because of illness.
Severance Pay A one-time payment some employers provide when terminating an employee.
Supplemental Unemployment Benefits
Provide for a guaranteed annual income in certain industries where employers must shut down to change
machinery or due to reduced work. These benefits are paid by the company and supplement
unemployment benefits.
Worker's Compensation Provides income and medical benefits to work-related accident victims or their
dependents regardless of fault.
Group Life Insurance Provides lower rates for the employer or employee and includes all employees,
including new employees, regardless of health or physical condition.
Health Maintenance Organization (HMO)
A prepaid health care system that generally provides routine round-the-clock medical services as well as
preventative medicine in a clinic-type arrangement for employees, who pay a nominal fee in addition to
the fixed annual fee the employer pays.
Preferred Provider Organization (PPO)
Groups of health care providers that contract with employers insurance companies, or third-party payers
to provide medical care services at a reduced fee.
Social Security Provides three types of benefits: retirement income at age 62 and thereafter; survivor's
or death benefits payable to the employee's dependents regardless of age at time of death; and disability
benefits payable to disabled employees and their dependents. These benefits are payable only if the
employee is insured under the Social Security Act.
Pension Plans Plans that provide a fixed sum when employees reach a predetermined retirement age or
when they can no longer work due to disability.
Defined Benefit Pension Plan A plan that contains a formula for determining retirement benefits.
Defined Contribution Plan A plan in which the employer's contribution to employee's
retirement or savings funds is specified.
Deferred Profit-Sharing Plan A plan in which a certain amount of profits is credited to each employee's
account, payable at retirement, termination, or death.
Vesting Provision that money placed in a pension fund cannot be forfeited for any reason.
Employee Retirement Income Security Act (ERISA)
Signed into law by President Ford in 1974 to require that pension rights be vested, and protected by a
government agency.
Pension Benefits Guarantee Corporation (PBGC)
Established under ERISA to ensure that pensions meet vesting obligations; also insures pensions should
a plan terminate without sufficient funds to meet its vested obligations.
Golden Offerings Offers to current employees aimed at encouraging them to retire early, perhaps even
with the same pensions they would expect if they retired at, say, age 65.
Early Retirement Window A type of golden offering by which employees are encouraged to retire early,
the incentive being liberal pension benefits plus perhaps a cash payment.
Employee Assistance Program (EAP)
A formal employer program for providing employees with counseling and/or treatment programs for
problems such as alcoholism, gambling, or stress. (page 495)
Flexible Benefits Program Individualized plans allowed by employers to accommodate employee
preferences for benefits.
Authorization Cards In order to petition for a union election, the union must show that at least 30% of
employees may be interested in being unionized. Employees indicate this interest by signing authorization
cards.
Bargaining Unit The group of employees the union will be authorized to represent.
Collective Bargaining The process through which representatives of management and the union meet to
negotiate a labor agreement.
Good Faith Bargaining A term that means both parties are communicating and negotiating and those
proposals are being matched with counterproposals with both parties making every reasonable effort to
arrive at agreements. It does not mean that either party is compelled to agree to a proposal.
Voluntary Bargaining Items Items in collective bargaining over which bargaining is neither illegal nor
mandatory--neither party can be compelled against its wishes to negotiate over those items.
Illegal Bargaining Items Items in collective bargaining that are forbidden by law; for example, the clause
agreeing to hire "union members exclusively" would be illegal in a right-to-work state.
Mandatory Bargaining Items in collective bargaining that a party must bargain over if they are
introduced by the other party--for example, pay.
Mediation Intervention in which a neutral third party tries to assist the principals in reaching agreement.
Arbitration The most definitive type of third-party intervention, in which the arbitrator usually has the
power to determine and dictate the settlement terms.
Economic Strike A strike that results from a failure to agree on the terms of a contract that involve
wages, benefits, and other conditions of employment.
Unfair Labor Practice Strike A strike aimed at protesting illegal conduct by the employer.
Wildcat Strike An unauthorized strike occurring during the term of a contract.
Sympathy Strike A strike that takes place when one union strikes in support of another.
Corporate Campaign An organized effort by the union that exerts pressure on the corporation by
pressuring the companys other unions, shareholders, directors, customers, creditors, and government
agencies, often directly.
Boycott the combined refusal by employees and other interested parties to buy or use the employer's
products.
Lockout A refusal by the employer to provide opportunities to work.
Grievance Any factor involving wages, hours, or conditions of employment that is used as a complaint
against the employer.
Motivation of Employees
Employee Motivation Introduction
Motivation Process
Core Phases of the Motivational Process
Theories of Motivation
Expectancy Theory
Reinforcement Theory
Motivation Defined
Many contemporary authors have also defined the concept of motivation. Motivation has been
defined as:
the psychological process that gives behavior purpose and direction (Kreitner, 1995);
a predisposition to behave in a purposive manner to achieve specific, unmet needs (Buford,
Bedeian, & Lindner, 1995);
an internal drive to satisfy an unsatisfied need (Higgins, 1994); and the will to achieve (Bedeian,
1993). For this paper, motivation is operationally defined as the inner force that drives
individuals to accomplish personal and organizational goals.
Motivation Process
Motivation of Employee
Employee Motivation Introduction
Motivation Process
Core Phases of the Motivational Process
Theories of Motivation
Expectancy Theory
Reinforcement Theory
Motivation of Employees
Employee Motivation Introduction
Motivation Process
Core Phases of the Motivational Process
Theories of Motivation
Expectancy Theory
Reinforcement Theory
chosen course of action results in the anticipated out come and reward, that person
is likely to be motivated by the prospect of a similar reward to act the same way in
the future. However, if the employees action does not result in the expected
reward, he or she is unlikely to repeat the behavior
6) Reassessment of Need deficiencies: Once felt need is satisfied through
certain rewards in response to performance than employee reassesses any
deficiencies and entire process is repeated again.
Theories of Motivation
Motivation of Employees
Employee Motivation Introduction
Motivation Process
Core Phases of the Motivational Process
Theories of Motivation
Expectancy Theory
Reinforcement Theory
Expectancy Theory
Reinforcement Theory
Abraham Maslow organized five major types of human needs into a hierarchy, as
shown in Figure. The need hierarchy illustrates Maslows conception of people
satisfying their needs in a specified order, from bottom to top. The needs, in
ascending order, are:
1. Physiological needs
2. Safety needs
3. Love belonging
4. Self-Esteem
5. Self-actualization
Physiological needs
For the most part, physiological needs are obvious they are the literal requirements for human
survival. If these requirements are not met, the human body simply cannot continue to function.
Air, water, and food are metabolic requirements for survival in all animals, including humans.
Clothing and shelter provide necessary protection from the elements. The intensity of the human
sexual instinct is shaped more by sexual competition than maintaining a birth rate adequate to
survival of the species.
Safety needs
With their physical needs relatively satisfied, the individual's safety needs take precedence and
dominate behavior. In the absence of physical safety -- due to terrorist attack, war, natural
disaster, or, in cases of family violence, childhood abuse, etc -- people (re-)experience posttraumatic stress disorder and trans-generational trauma transfer. In the absence of economic
safety -- due to economic crisis and lack of work opportunities - these safety needs manifest
themselves in such things as a preference for job security, grievance procedures for protecting
the individual from unilateral authority, savings accounts, insurance policies, reasonable
disability accommodations, and the like.
Safety and Security needs include:
Personal security
Financial security
Friendship
Intimacy
Family
Humans need to feel a sense of belonging and acceptance, whether it comes from a large social
group, such as clubs, office culture, religious groups, professional organizations, sports teams,
gangs, or small social connections (family members, intimate partners, mentors, close
colleagues, confidants). They need to love and be loved (sexually and non-sexually) by others. In
the absence of these elements, many people become susceptible to loneliness, social anxiety, and
clinical depression. This need for belonging can often overcome the physiological and security
needs, depending on the strength of the peer pressure; an anorexic, for example, may ignore the
need to eat and the security of health for a feeling of control and belonging.[citation needed]
Esteem
All humans have a need to be respected and to have self-esteem and self-respect. Esteem
presents the normal human desire to be accepted and valued by others. People need to engage
themselves to gain recognition and have an activity or activities that give the person a sense of
contribution, to feel self-valued, be it in a profession or hobby. Imbalances at this level can result
in low self-esteem or an inferiority complex. People with low self-esteem need respect from
others. They may seek fame or glory, which again depends on others. Note, however, that many
people with low self-esteem will not be able to improve their view of themselves simply by
receiving fame, respect, and glory externally, but must first accept themselves internally.
Psychological imbalances such as depression can also prevent one from obtaining self-esteem on
both levels.
Most people have a need for a stable self-respect and self-esteem. Maslow noted two versions of
esteem needs, a lower one and a higher one. The lower one is the need for the respect of others,
the need for status, recognition, fame, prestige, and attention. The higher one is the need for selfrespect, the need for strength, competence, mastery, self-confidence, independence and freedom.
The latter one ranks higher because it rests more on inner competence won through experience.
Deprivation of these needs can lead to an inferiority complex, weakness and helplessness.
Maslow also states that even though these are examples of how the quest for knowledge is
separate from basic needs he warns that these two hierarchies are interrelated rather than
sharply separated (Maslow 97). This means that this level of need, as well as the next and
highest level, are not strict, separate levels but closely related to others, and this is possibly the
reason that these two levels of need are left out of most textbooks.
Self-actualization
Main article: Self-actualization
What a man can be, he must be. This forms the basis of the perceived need for selfactualization. This level of need pertains to what a person's full potential is and realizing that
potential. Maslow describes this desire as the desire to become more and more what one is, to
become everything that one is capable of becoming. This is a broad definition of the need for
self-actualization, but when applied to individuals the need is specific. For example one
individual may have the strong desire to become an ideal parent, in another it may be expressed
athletically, and in another it may be expressed in painting, pictures, or inventions. As mentioned
before, in order to reach a clear understanding of this level of need one must first not only
achieve the previous needs, physiological, safety, love, and esteem, but master these needs.
According to Maslow, people are motivated to satisfy the lower needs before they
try to satisfy the higher need. Also, once a need is satisfied it is no longer a powerful
Expectancy Theory
Reinforcement Theory
Clayton P. Alderfer
Existence Needs: physiological and safety needs (such as hunger, thirst and
sex). The first two levels ofMaslow.
Relatedness Needs: social and external esteem (involvement with family,
friends, co-workers and employers). The third and fourth levels of Maslow.
Growth Needs: internal esteem and self actualization (the desire to be
creative, productive and to complete meaningful tasks). Maslow's fourth and
fifth levels.
Motivation Process
Core Phases of the Motivational Process
Theories of Motivation
Expectancy Theory
Reinforcement Theory
(19061964)
This question of motivation has been studied by management theorists and social
psychologists for decades, in attempts to identify successful approaches to
management.
Social psychologist McGregors Theory-X and Theory-Yof MIT expounded two
contrasting theories on human motivation and management in the 1960s: The X
Theory and the Y Theory. McGregor promoted Theory Y as the basis of good
management practice, pioneering the argument that workers are not merely cogs in
Theory X
Theory X assumes that employees are naturally unmotivated and dislike working,
and this encourages an authoritarian style of management. According to this view,
management must actively intervene to get things done. This style of management
assumes that workers:
Dislike working.
Avoid responsibility and need to be directed.
X-Type organizations tend to be top heavy, with managers and supervisors required
at every step to control workers. There is little delegation of authority and control
remains firmly centralized.
McGregor recognized that X-Type workers are in fact usually the minority, and yet in
mass organizations, such as large scale production environment, X Theory
management may be required and can be unavoidable.
Theory Y
Theory Y expounds a participative style of management that is de-centralized. It
assumes that employees are happy to work, are self-motivated and creative, and
enjoy working with greater responsibility. It assumes that workers:
Take responsibility and are motivated to fulfill the goals they are given.
Seek and accept responsibility and do not need much direction.
Consider work as a natural part of life and solve work problems imaginatively
This more participative management style tends to be more widely applicable. In YType organizations, people at lower levels of the organization are involved in
decision making and have more responsibility.
Comparing Theory X and Theory Y
Motivation
Theory X assumes that people dislike work; they want to avoid it and do not want to
take responsibility. Theory Y assumes that people are self-motivated, and thrive on
responsibility.
Management Style and Control
In a Theory X organization, management is authoritarian, and centralized control is
retained, whilst in Theory Y, the management style is participative: Management
involves employees in decision making, but retains power to implement decisions.
Work Organization
Theory X employees tend to have specialized and often repetitive work. In Theory Y,
the work tends to be organized around wider areas of skill or knowledge; Employees
are also encouraged to develop expertise and make suggestions and improvements.
Expectancy Theory
Motivation of Employees
Employee Motivation Introduction
Motivation Process
Core Phases of the Motivational Process
Theories of Motivation
Expectancy Theory
Reinforcement Theory
Victor Vroom
he desire to satisfy the need is strong enough to make the effort worthwhile.
Vroom's Expectancy Theory is based upon the following three beliefs.
This formula can be used to indicate and predict things as: job satisfaction,
occupational choice, the likelihood of staying in a job, and the effort that one might
expend at work.
Reinforcement Theory
Motivation of Employees
Employee Motivation Introduction
Motivation Process
Core Phases of the Motivational Process
Theories of Motivation
Expectancy Theory
Reinforcement Theory
to say thanks for a favor, or setting impossible performance goals so that the
person never experiences success. The first two consequences, positive and
negative reinforcement, are positive for the person receiving them: The person
either gains something or avoids something negative. Therefore, the person who
experiences these consequences will be motivated to behave in the ways that led to
the reinforcement. The last two consequences, punishment and extinction, are
negative outcomes for the person receiving them: Motivation to repeat the behavior
that led to the undesirable results will be reduced.
Thus, effective managers give positive reinforcement to their high-performing
people and negative reinforcement to low performance. They also punish or
extinguish poor performance and other unwanted behavior.
Expectancy Theory
Reinforcement Theory
Hygiene factors
Hygiene factors are those job factors which are essential for existence of motivation
at workplace. These do not lead to positive satisfaction for long-term. But if these
factors are absent / if these factors are non-existant at workplace, then they lead to
dissatisfaction. In other words, hygiene factors are those factors which when
adequate / reasonable in a job, pacify the employees and do not make them
dissatisfied. These factors are extrinsic to work. Hygiene factors are also called as
dissatisfiers or maintenance factors as they are required to avoid dissatisfaction.
These factors describe the job environment / scenario. The hygiene factors
symbolized the physiological needs which the individuals wanted and expected to
be fulfilled. Hygiene factors include:
Pay- The pay or salary structure should be appropriate and reasonable. It must be equal and
competitive to those in the same industry in the same domain.
Company Policies and administrative policies- The company policies should not be too rigid.
They should be fair and clear. It should include flexible working hours, dress code, breaks,
vacation, etc.
Fringe benefits- The employees should be offered health care plans (mediclaim), benefits for
the family members, employee help programmes, etc.
Physical Working conditions- The working conditions should be safe, clean and hygienic. The
work equipments should be updated and well-maintained.
Status- The employees status within the organization should be familiar and retained.
Interpersonal relations-The relationship of the employees with his peers, superiors and
subordinates should be appropriate and acceptable. There should be no conflict or humiliation
element present.
Job Security- The organization must provide job security to the employees.
Motivational factors
According to Herzberg, the hygiene factors cannot be regarded as motivators. The motivational factors
yield positive satisfaction. These factors are inherent to work. These factors motivate the employees
for a superior performance. These factors are called satisfiers. These are factors involved in performing
the job. Employees find these factors intrinsically rewarding. The motivators symbolized the
psychological needs that were perceived as an additional benefit. Motivational factors include:
Recognition- The employees should be praised and recognized for their accomplishments by
the managers.
Sense of achievement- The employees must have a sense of achievement. This depends on the
job. There must be a fruit of some sort in the job.
Growth and promotional opportunities- There must be growth and advancement opportunities
in an organization to motivate the employees to perform well.
Responsibility- The employees must hold themselves responsible for the work. The managers
should give them ownership of the work. They should minimize control but retain
accountability.
Meaningfulness of the work- The work itself should be meaningful, interesting and challenging
for the employee to perform and to get motivated.
Low productivity
Poor production or service quality
According to Herzberg, management should focus on rearranging work so that motivator factors
can take effect. He suggested three ways in which this could be done:
Maslows and Herzbergs Ideas Compared
Expectancy Theory
Reinforcement Theory
McClelland (1961)
Need for affiliation is a need for open and sociable interpersonal relationships. In
other words, it is a desire for relationship based on co-operation and mutual
understanding.
The individuals with high achievement needs are highly motivated by competing
and challenging work. They look for promotional opportunities in job. They have a
strong urge for feedback on their achievement. Such individuals try to get
satisfaction in performing things better. High achievement is directly related to high
performance. Individuals who are better and above average performers are highly
motivated. They assume responsibility for solving the problems at work. McClelland
called such individuals as gamblers as they set challenging targets for themselves
and they take deliberate risk to achieve those set targets. Such individuals look for
innovative ways of performing job. They perceive achievement of goals as a reward,
and value it more than a financial reward.
The individuals who are motivated by power have a strong urge to be influential
and controlling. They want that their views and ideas should dominate and thus,
they want to lead. Such individuals are motivated by the need for reputation and
self-esteem. Individuals with greater power and authority will perform better than
those possessing less power. Generally, managers with high need for power turn out
to be more efficient and successful managers. They are more determined and loyal
to the organization they work for. Need for power should not always be taken
negatively. It can be viewed as the need to have a positive effect on the
organization and to support the organization in achieving its goals.
The individuals who are motivated by affiliation have an urge for a friendly and
supportive environment. Such individuals are effective performers in a team. These
people want to be liked by others. The managers ability to make decisions is
hampered if they have a high affiliation need as they prefer to be accepted and
liked by others, and this weakens their objectivity. Individuals having high affiliation
needs prefer working in an environment providing greater personal interaction.
Such people have a need to be on the good books of all. They generally cannot be
good leaders.
Expectancy Theory
Reinforcement Theory
Definition of equity
An individual will consider that he is treated fairly if he perceives the ratio of his
inputs to his outcomes to be equivalent to those around him. Thus, all else being
equal, it would be acceptable for a more senior colleague to receive higher
compensation, since the value of his experience (and input) is higher. The way
people base their experience with satisfaction for their job is to make comparisons
with themselves to people they work with. If an employee notices that another
person is getting more recognition and rewards for their contributions, even when
both have done the same amount and quality of work, it would persuade the
employee to be dissatisfied. This dissatisfaction would result in the employee
feeling underappreciated and perhaps worthless. This is in direct contrast with the
idea of equity theory, the idea is to have the rewards (outcomes) be directly related
with the quality and quantity of the employees contributions (inputs). If both
employees were perhaps rewarded the same, it would help the workforce realize
that the organization is fair, observant, and appreciative.
This can be illustrated by the following equation:
An employees loyalty
The support that the employee has provided to the organisation, colleagues
and line managers
Output Examples
Salary
Bonus
Prizes
Work promotions
Pension
Employer flexibility
Annual leave
Adams stated that if an employee believes that their work outputs are not equal or
greater than their inputs then the employee will become de-motivated. Adams
theory includes the assertion that when an employee is assessing whether the
outputs they receive are fair the employee will often compare their colleagues work
inputs and outputs with their own. The comparison will often be made with an
employee at a similar level in the organisation to the employee.
Propositions
Equity theory consists of four propositions:
1. Individuals seek to maximize their outcomes (where outcomes are defined as
rewards minus costs).
2. Groups can maximize collective rewards by developing accepted systems for
equitably apportioning rewards and costs among members. Systems of equity
will evolve within groups, and members will attempt to induce other
members to accept and adhere to these systems. The only way groups can
induce members to equitably behave is by making it more profitable to
behave equitably than inequitably. Thus, groups will generally reward
members who treat others equitably and generally punish (increase the cost
for) members who treat others inequitably.
3. When individuals find themselves participating in inequitable relationships,
they become distressed. The more inequitable the relationship, the more
distress individuals feel. According to equity theory, both the person who gets
too much and the person who gets too little feel distressed. The person
who gets too much may feel guilt or shame. The person who gets too little
may feel angry or humiliated.
4. Individuals who perceive that they are in an inequitable relationship attempt
to eliminate their distress by restoring equity. The greater the inequity, the
more distress people feel and the more they try to restore equity. (Walster,
Traupmann and Walster, 1978)
Expectancy Theory
Reinforcement Theory
design has been implemented in several ways. Job enlargement assigns workers to
additional same-level tasks to increase the number of tasks they have to perform.
Job rotation systematically moves workers from job to job. Job enrichment means
building motivators like opportunities for achievement into the job by making it
more interesting and challenging. Forming natural work groups, combining tasks,
establishing client relationships, vertically loading the job, and having open
feedback channels may implement Job enrichment.
c. Using Merit Pay:
A merit raise is a salary increase, usually permanent, that is based on the
employees individual performance. It is a continuing increment rather than a single
payment like a bonus. Relying heavily on merit rewards can be a problem because
the reinforcement benefits of merit pay is usually only determined once per year.
d. Using Spot Awards:
A spot award is one given to an employee as soon as the laudable performance is
observed. These awards are consistent with principles of motivation because they
are contingent on good performance and are awarded immediately.
e. Using Skill-Based Pay:
With skill-based pay, employees are paid for the range, depth, and types of skills
and knowledge they are capable of using rather than for the job they currently hold.
Skill based pay is consistent with motivation theory because people have a selfconcept in which they seek to fulfill their potential. The system also appeals to the
employees sense of self-efficacy because the reward is a formal and concrete
recognition that the person can do the more challenging job well.
f. Using Recognition:
Some employees highly value day-to-day recognition from their supervisors, peers
and team members because it is important for their work to be appreciated by
others. Recognition helps satisfy the need people have to achieve and be
recognized for their achievement.
g. Using Job Redesign:
Job design refers to the number and nature of activities in a job. The key issue is
whether jobs should be more specialized or more enriched and no routine. Job
design has been implemented in several ways. Job enlargement assigns workers to
additional same-level tasks to increase the number of tasks they have to perform.
Job rotation systematically moves workers from job to job. Job enrichment means
building motivators like opportunities for achievement into the job by making it
more interesting and challenging. Job enrichment may be implemented by forming
natural work groups, combining tasks, establishing client relationships, vertically
Expectancy Theory
Reinforcement Theory
challenges, they must understate the forces that derive employees' actions, how
employees channel their actions towards goals, and how high
Motivation of Employees
Employee Motivation Introduction
Motivation Process
Theories of Motivation
o
Expectancy Theory
Reinforcement Theory
It is a costly mistake to get lost in the false theory that more money equals happy
employees.
Believing this is costing you valuable time, revenue, employees...and even
threatening your own job. Cash will always be a major factor in motivating people
and a solid compensation plan is critical to attracting and keeping key personnel.
But the key is that additional cash is not always the only answer and in many cases
not even the best answer.
Too many bonus or commission checks get cashed, spent and forgotten just that
quickly. Grocery stores and gasoline stations are among the necessary stops that
seem to get in the way of using your extra cash on something special for you.
One alternative to giving commissions or bonus dollars is to give gifts through a
catalog point system.
The company you choose will provide you with catalogs, price sheets and point
checks at no charge. The structure for your bonus plan can remain the same but
instead of awarding cash to your employees you award equivalent points. Those
points may then be used to purchase an enormous variety of gifts or travel plans
from the catalog.
The stimulation involved is long-lasting. It begins with the employee being able to
browse the catalog choosing what they will strive to earn. The catalog acts as a
tangible reminder of their goal. The gift itself will last as evidence of their
achievements.
Whenever I have implemented this program, the employees are overwhelmingly in
favor of the point system as opposed to cash. This type of program is very popular
with employees because they purchase things they would never normally have the
"money" to afford.
With solid compensation in place, let's look at non-monetary motivation...20 steps
to success.
1. Recognition/Attention. When your employees accomplish something they
have achieved something. Your recognition is appreciation for that achievement. I
believe that most managers don't give enough recognition because they don't get
enough. Therefore, it doesn't come natural to do it. If this applies to you, you need
to drop this excuse like a bad habit! Become a giver! Look at the price. Recognition
is free!
2. Applause. A form of recognition yes, but a very specific form. Physically applaud
your people by giving them a round of applause for specific achievements. Where?
When? The answer is wherever and whenever. At meetings or company-sponsored
social gatherings, a luncheon, or in the office. At the end of a shift, before a shift,
and whenever possible in the middle of a shift.
Using plaques or trophies is another effective way of applauding your people.
Although "wooden applause" is often successfully used in the form of Employee of
the Month plaques, more creative ideas are sorely underutilized. Take the time to be
creative, matching special accomplishments with unique awards.
3. One-on-One Coaching. Coaching is employee development. Your only cost is
time. Time means you care. And remember your people don't care how much you
that are team driven. People driving to reach goals together definitely enhance
team spirit solely because they must lean upon others and be prepared to be leaned
on.
One very effective idea for me has been building a collage of creative ideas with the
"Team" theme. All employees are responsible for submitting a phrase referring to
TEAM on a weekly rotation. Each of these ideas (such as TEAM: Total Enthusiasm of
All Members or There is no I in Team) is placed on a wall, creating a collage of Teamoriented phrases. Don't have one person responsible for this...do it as a team.
11. Executive Recognition. This is the secret weapon. And like any secret
weapon, timing is most critical. If this is used too often the value is diminished. And
if it is used only for special occasions and rare achievements the value is escalated.
We talked earlier about general recognition and the positive impact that has on your
people. That will go up a few notches when it comes from an executive. Some of the
same vehicles can be used here such as memos and voice mail. To add yet another
level of stimulation, have an executive either personally call to congratulate
someone (or a group) or even show up in person to shake hands and express his or
her appreciation.
12. Social Gatherings. Scheduled offsite events enhance bonding which in turn
helps team spirit, which ultimately impacts your positive work environment.
Halloween costume parties, picnics on July 4th, Memorial Day or Labor Day, and
Christmas parties are only some of the ideas that successfully bring people together
for an enjoyable time. Some others that I've used with equal success are softball
games (against other companies or among employees, depending on staff size),
groups going putt-putt golfing or movie madness.
13. Casual Dress Day. This will apply more to the Business-to-Business world
based on the difference in normal dress codes from the Business-to-Consumer
arena. For those required to "dress business" every day a casual day becomes a
popular desire. Use holidays to create theme color casual days such as red and
green before Christmas or red, white and blue before July 4th, or black and orange
prior to Halloween. This will add to the impact you're trying to have by calling a
casual day in the first place. Establish pre-vacation casual days for each individual
employee to enjoy on the day before his or her vacation.
Major sports events are a perfect opportunity for casual days to support your local
or favorite team with appropriate colors, buttons, and logo wear. Spontaneous
casual days produce a lot or stimulation based on the element of surprise.
Announce a casual dress day for the following work day "just because." Use
individual or team casual dress days as contest prizes or awards for specific
accomplishment.
14. Time Off. Implement contests that earn time off. People will compete for 15
minutes or 1/2 hour off just as hard as they will for a cash award. And in many
cases, I have had people pick time off over cash when given the choice. Put goals in
place (padded of course) and when these goals are reached by individuals, teams or
the entire staff, reward them with time off. Allow early dismissals, late arrivals, and
extended lunch periods or additional breaks.
15. Outside Seminars. Outside seminars are a stimulating break. Because outside
seminars are not always cost efficient for most people, consider on-site seminars or
workshops for your staff. Use outside seminars as a contest prize for one or two
people. Then set up a structured plan for those seminar attendees to briefly
recreate the seminar to the rest of your people when they return. Now everyone
gets educated for the price of one.
16. Additional Responsibility. There are definitely employees in your
organization who are begging for and can handle additional responsibility. Our job as
managers is to identify who they are and if possible match responsibilities to their
strengths and desires.
17. Theme Contests. Over the years my contests have produced up to 170%
increase in performance. But equally as important, they've helped maintain positive
environments that have reduced employee turnover by 400%.
Overall the most successful contests seem to be those affiliated with different
themes. Holidays, anniversaries, sports and culture are examples of ideas to base
contests on. Sports, without a doubt, provide the largest opportunity for a wide
variety of contests. Even Culture can be used to create theme contest. My favorite
is using the '50s and '60s as a theme for a contest that I run at least once a year.
18. Stress Management. There are many articles and books available on the
subject. Make this reference material available to your people. Make sure they know
it is available and encourage them to use it.
If possible, have an in-house seminar on stress management techniques. So that
production time is not lost, you might consider having a brown bag luncheon with a
guest speaker on this subject. Because stress is an ongoing concern, anytime is a
good time for a seminar like this to take place.
Be as flexible as you can with breaks during the course of the day.
19. Pizza/Popcorn/Cookie Days. Every now and then pizza, popcorn, or cookie
days will help break up that everyday routine and help people stay motivated.
Because it is a natural tendency for people to get excited in anticipation of
something, structure some of these days in advance. Then buy some pizzas or
California raisins for those with the highest percentage of "raisin" their
productivity.
Special parking space for the person who drives the hardest.
Special Mountain Dew can for that person who exemplifies the "can do"
attitude.
The Eveready Bunny for those that keep going, and going, and going.