UNIT 3

Renu Jogdand
CAREER AND CAREER DEVELOPMENT
What is career?
Def. (Oxford English Dictionary)
A person’s course or progress through life.
It also pertains to his occupational or profession
that usually involves special training or formal
education and is considered to be a person’s
lifework.
What is career development?
Career development is an ongoing process of
gaining knowledge and improving skills that will
help an individual to establish a career plan.

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 WHY CAREER DEVELOPMENT?
Today’s Generation Students…….
1. Never plan for the future.
2. Follow the crowd
3. Choose by influence of others.
4. Accept the parent’s verdict(decision) by force
5. Get tempted by current trends
6. Jump into any career
7. Lack motivation
8. Fail to ‘’discover their lives’’
9. Live in a fantasy world

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 CURRENT TRENDS
1. Focus is lost.
2. Effort to increase quantity.
3. Survival of the fittest.
4. Less influence by parents, teachers, etc.
5. Increasing Dropouts .
6. Checking quality in products such as food and
clothing but not education.
7. Increasing competition
8. Effort to increase quantity.
9. A-I-M LESS process

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WHO ARE RESPONSIBLE FOR THESE?
Students themselves.
Parents
Teachers
Schools & Colleges – majority of them.
Society
Government.
People who have knowledge.
People who achieved success but forgot others.
People who can influence others for good.

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Then What do we do????????

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So what do you want to do with the rest of
your life ??????

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Why Select a Career?
1. We have been created unique.
2. We are born only once.
3. We spend almost 40 years on our work.
4. A total over 80,000 hours , we work.
5. Now ask yourself how you will spend these
80,000 hours before you die??????

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THE CAREER DECISION-MAKING
PROCESS

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STAGES OF CAREER
DEVELOPMENT

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STAGES OF CAREER
DEVELOPMENT
1. Exploration
2. Establishment
3. Mid career
4. Late career
5. Decline

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1. Exploration period
A career stage that usually ends in the mid-
twenties as one makes transition from formal
education to job

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2. Establishment
Establishment period begins
with the search of work and
includes accepting your first
job, being accepted by your
peers, learning the job and
gaining the first tangible
evidence of success or failure
in the real world.

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 3. MID-CAREER
1. Continuous improvement in the performance
2. Levelling off in the performance
3. Beginning of deterioration process
4. Some employees reach their early goals and go on
to even greater heights.
5. individuals may continue their prior
improvements in performance, level off, or begin
to deteriorate.
6. employees can be highly productive. They are
technically competent—even though some may
not be as ambitious and aggressive as the
climbers.

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4. Late career
1. A career stage in which the individuals are
not learning about their jobs nor expected to
outdo their level of performance from
previous years
2. as a pleasant time with the luxury of relaxing
a bit and enjoy playing the part of the elder
statesperson. They often teach others based
on the knowledge they have gained.
3. Those who have stagnated or deteriorated
during the previous stage, on the other
hand, often realize in the late career that
they will not have an everlasting impact or
change the world as they once thought

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5. Decline
Decline or late stage in one’s career is difficult
for just about everyone, but ironically is
probably hardest on those who have had
continued successes in the earlier stages.

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COMPENSATION MANAGEMENT
COMPENSATION – MEANING & DEFINITION:

Compensation is the remuneration paid by the

management to the employee for his/her
contribution to the organization i.e. work
performed.
Compensation includes Wages/Salary,
incentives, bonus & social security measures or
fringe benefits.
“Compensation is the total amount of the
monetary and non-monetary pay provided to
an employee by an employer in return for work
performed as required.” – Susan M Heathfield

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 Compensation – Meaning & Definition:
Wage & Salary administration: is essentially the
application of systematic approach to the problem of
ensuring that the employees are paid in a logical,
equitable & fair manner.
1. Wage: Indian Labour Organisation defines the term
Wage as the “the remuneration paid by the
employer for the services of hourly, daily, weekly &
fortnightly employees.
2. Salary: The term salary is defined as the
remuneration paid to the clerical & managerial
personnel employed on monthly or annual basis. It is
also known as Basic Pay.
3. Earnings: Earnings are the total amount of
remuneration received by an employee during a
given period. These include salary, dearness
allowance, House rent allowance, city compensatory
allowance, other allowances, over time payments,
etc.

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Objectives of Compensation
1. To Establish a Fair and Equitable
Remuneration: compensation differentials
between jobs should be in proportion of
differences in the worth of jobs
2. To Attract Competent Personnel: to attract
best talents by offering better compensation
packages.
3. To Retain the Present Employees : For
example employees attrition ishigh in
knowledge sectors (Ad-agency, KPO, BPO etc.,) 6. To Improve Public Image of the Company
which force the companies to offerbetter pay to 7. To Improve Job Satisfaction
retain their employees.
4. To Improve Productivity
5. To Control Cost: Through sound compensation
management, administration and labour costs can
bekept in line with the ability of the company to pay. If
facilitates administration and control of pay roll. The
companies can systematically plan and control labour
costs.
5. To Improve Union Management Relations
8. To Motivate Employees
9. Peace of Mind
10. Increases Self-Confidence: his/her efforts to get
acknowledgment. Employees gainmore and more
confidence in them and in their abilities
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Principles of Compensation Administration
1. Compensation policy should be developed by 4. To manage compensation related matters
taking into consideration of the views of adequate information/data should be
employers, the employees, the consumers and developed and stored for future planning and
the community. execution.
2. The compensation policy or wage policy 5. The compensation policy and programme
should be clearly defined to ensure uniformed should be reviewed and revised periodically in
consistent application conformity with changing needs.
3. Management should inform the wage/salary
related policies to their employees. Workers
should be associated in formulation and
implementation of wage policy

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Factors Considered in Deciding the
Compensation
EXTERNAL FACTORS INTERNAL FACTORS

1. Demand and Supply of Labour 1. Ability to Pay : financial position and

profitability of the firm
2. Cost of Living
2. Top Management Philosophy
3. Labour Union 3. Productivity of Workers
4. Government : Laws on minimum wages, 4. Job Requirements
hours of work, equal pay for equal work, a) Hardship, b) Difficulty of learning the job c)
payment of dearness and other allowances, Stability of employment d) Responsibility of
payment of bonus, etc. learning the job and f) Change for success or
failure in the work.
5. Principal Wage Rates : wages paid for similar 5. Employees Related Factors : Performance,
occupations in the industry, region and the Seniority, Experience, Potential
economy

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Classification of Compensation

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 Classification of Compensation
DIRECT COMPENSATION:
It refers to monetary benefits offered and provided
to employees in return of the services they provide
to the organization. The monetary benefits include
basic salary, house rent allowance, conveyance,
leave travel allowance, medical reimbursements,
special allowances, bonus, PF/Gratuity, etc. They
are given at a regular interval at a definite time.
BASE PAY / COMPENSATION
It refers to the basic salaries and wages given to employees. It is normally constant at a given
amount irrespective of the work performance.
Factors influencing Base Compensation and Benefits
1. Demand and supply of labor in the market
2. Labor union pressure,as the unions always try their best to fight for their members'
rights.
3. Nature of job as determined by the job description
4. Size of the organization and its ability to pay its employees.
5. Psychological and social factors like employee satisfaction and security.
6. Salaries paid by similar firms are also a factor affecting base compensation.
7. Government policies on wage determination
8. Cost of living of the employees. When the employees' cost of living is very high then they
need a higher compensation benefit.
9. Increase in productivity of labor
10. Firms in general: whether competing firms or not.
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VARIABLE COMPENSATION / MERIT PAY
one gets compensation per the work done. If
one does a remarkable job then he or she
deserves a higher compensation package than
one whose work is of poor quality.
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INDIRECT COMPENSATION (FRINGE BENEFITS)
It refers to non-monetary benefits offered and
provided to employees in lieu of the services
provided by them to the organization. They include
Paid Leave, Car / transportation, Medical Aids and
assistance, Insurance (for self and family), Leave
travel Assistance, Retirement Benefits, Holiday
Homes.
SUPPLEMENTARY COMPENSATION
Supplemental compensation is for temporary work
beyond the faculty member's normal assignments.
The extra assignment should be non-recurring and
clearly limited in time and scope.
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 Components of Compensation
1. Basic Wages/Salaries
2. Dearness Allowance: the price increase or inflation of prices of goods and services consumed by him
3. Incentives: ‘payments by results’. Incentives depend upon productivity, sales, profit, or cost reduction efforts
4. Bonus: fixed percentage on the basic wage paid annually or in proportion to the profitability.
5. Non-Monetary Benefits
1. (a) Recognition of merit through certificate, etc. (b) Offering challenging job responsibilities, (c) Promoting growth
prospects, (d) Comfortable working conditions, (e) Competent supervision, and (f) Job sharing and flexi-time.

6. Piece Rate Wages :manufacturing wages- Quantity produced

7. Fringe Benefits : Next slide
8. Profit Sharing: The percentage to be shared by the workers is often predetermined at the beginning of the
work period and is often communicated to the workers so that they have some knowledge of their potential
gains. To enable the workers to participate in profit sharing, they are required to work for certain number of
years and develop some seniority. The theory behind profit-sharing is that management feels its workers will
fulfill their responsibilities more carefully if they realize that their efforts may result in higher profits, which
will be returned to the workers through profit-sharing

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Fringe Benefits : It is the monetary & non-monetary benefits given to employee during
their employment tenure. Fringe Benefit means any privilege, service, facility or amenity, directly or
indirectly provided to employee by an employer
OBJECTIVES / PURPOSE OF FRINGE BENEFITS
1. To create and improve sound industrial
relations
2. To boost up employee morale
3. To motivate the employees by identifying and
satisfying their unsatisfied needs.
4. To provide qualitative work environment and
work life.
5. To provide security to the employees against
social risks like old age benefits and maternity
benefits.
PAID LEAVE, CAR / TRANSPORTATION, MEDICAL
AIDS AND ASSISTANCE, INSURANCE (FOR SELF
AND FAMILY), LEAVE TRAVEL ASSISTANCE,
RETIREMENT BENEFITS, HOLIDAY HOMES
6. To protect the health of the employees and to
provide safety to the employees against
accidents
7. To promote employees welfare by providing
welfare measures like recreation facilities.
8. To create a sense of belongingness among
employees and to retain them. Hence, fringe
benefits are called golden hand-cuffs.
9. To meet requirements of various legislations
relating to fringe benefits.

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Types of Compensation: Direct
compensation
Direct compensation refers to monetary
benefits offered and provided to employees in
return of the services they provide to the
organization. The monetary benefits include
basic salary, house rent allowance, conveyance,
leave travel allowance, medical
reimbursements, special allowances, bonus,
Pf/Gratuity, etc. They are given at a regular
interval at a definite time.

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Direct /Base Compensation
1. Basic Salary : Salary is the amount received by
the employee in lieu of the work done by
him/her for a certain period say a day, a week, a
month, etc
2. House Rent Allowance : accommodations/
HRA (social security and motivate them to work)
3. Conveyance : cab facilities/ vehicles and
petrol allowances
4. Leave Travel Allowance : allowances to visit
any place they wish with their families. The
allowances are scaled as per the position of
employee in the organization.
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5. Medical Reimbursement : medi-claims for
them and their family members. These medi-
claimsinclude health-insurances and treatment
bills reimbursements.
6. Bonus: paid to the employees during festive
seasons to motivate them and provide them the
social security. The bonus amount usually
amounts to one month’s salary of the employee.
7. 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
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Indirect /Supplementary Compensation
Indirect compensation refers to non-monetary
benefits offered and provided to employees in
lieu of the services provided by them to the
organization. They include Leave Policy,
Overtime Policy, Car policy, Hospitalization,
Insurance, Leave travel Assistance Limits,
Retirement Benefits, Holiday Homes.

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Indirect /Supplementary Compensation
1. Leave Policy : paid leaves such as, casual 6. Retirement Benefits : pension plans
leaves, medical leaves(sick leave), and maternity
leaves, statutory pay, etc. 7. Holiday Homes

2. Overtime Policy: adequate allowances, 8. Flexible Timings

transport facilities, overtime pay
3. Hospitalization : regular check-ups
4. Insurance: accidental insurance and life
insurance
5. Leave Travel: employees are provided with
leaves and travel allowances to go for holiday
withtheir families

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 Understanding Salary Breakup, Salary
Structure, And Salary Components!
1. CTC = Gross Salary + PF + Gratuity
2. Basic salary is the base income of an individual.
It is a fixed part of one's compensation
package.
3. before deduction of taxes and other
deductions. It includes bonuses, over-time pay,
holiday pay, and other differentials.
Gross Salary = Basic Salary + HRA + Other
Allowances
4. Net Salary = Basic Salary + HRA + Allowances -
Income Tax - Employer's Provident Fund -
Professional Tax
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Employer Provident fund/EPF or Provident Fund
Provident fund is an investment both by the
employer and the employee each month, 12% of
the basic salary
Gratuity: least five full years of service with the
current employer
Gratuity = [ (Basic monthly salary + D.A) x 15 days x
No. of years of service ] / 26
HRA
50% of the annual basic salary if staying in a metro
city or 40% of the annual basic salary if staying in a
non-metro city.
Tax:
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Grievance Redressal: Measures for
prevention and settlement of ID

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Dissatisfaction, Complaint & Grievance
Dissatisfaction :Anything that disturbs an
employee, whether or not the unrest is
expressed in words.
Complaint : A spoken or written dissatisfaction
brought to the attention of the supervisor
Grievance : A complaint that has been formally
presented to a Management Representative or
to a Union Official
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Grievance Defined:
A grievance as a complaint of one or more
workers with respect to wages and allowances,
conditions of work and interpretation of service,
condition covering such areas as overtime,
leave, transfer, promotion, seniority, job
assignment and termination of service.
- International Labour Organization(ILO)
36
Definitions & Features
1. A grievance is a formal dispute between an Features of Grievances:
employee & management on the conditions of
employment. 1. Discontent or Dissatisfaction.

2. Grievances are complaints that have been
formally registered in accordance with the
grievance procedure.
3. A grievance is any dissatisfaction or feeling of
injustice in connection with one’s employment
situation that is brought to the attention of the
management.
2. Dissatisfaction must arise out of
employment & not due to personal reasons.
3. The discontentment can arise out of real or
imaginary reasons.
4. The discontent may be voiced or unvoiced
but it must expression in some form.
5. Broadly speaking a grievance is noticeable &
traceable to real or perceived nonfulfillment
of one’s expectations.

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 Reasons : Types:
1. Work Environment : Light , space ,heat. 1. Individual Grievance: complaint that an action
by management has violated the rights of an
2. Use of equipment : Tools / Poor Maintenance. individual as set out in the collective
agreement or law, or by some unfair practice.
3. Supervisory Practices. Examples: discipline, demotion, classification
4. Personality clashes. disputes, denial of benefits, etc.
5. Managers’ Behavior. 2. Group Grievance: complaint by a group of
individuals, for example, a department or a
6. Problems with pay / allowances. shift that has been affected the same way and
at the same time by an action taken by
7. Perceived inequalities in treatment : Pay, management. An example of a group grievance
appeals against performance related awards. would be where the employer refuses to pay a
shift premium to the employees who work on
8. Organizational Change. afternoon shift when the contract entitles
them to it.

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Effects of Grievances:
1. On Production : Low quality of production ,
Low productivity , Increase in wastage ,
Increase in cost of production
2. On Employees : Increased absenteeism ,
Reduction in level of commitment , Increase
in accidents , Reduced level of employee
morale.
3. On Managers : Strained superior –
subordinate relations , Need for increased
supervision/control & follow up Increase in
unrest ,thereby machinery to maintain
industrial peace.

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Benefits & Objectives
BENEFITS OF GRIEVANCE HANDLING
OBJECTIVES OF GRIEVANCE HANDLING
PROCEDURES
1. It encourages employees to raise concerns 1. To enable employee to air his/her grievance.
without fear of reprisal. 2. To clarify the nature of grievance.
2. It provides a fair & speedy means of dealing 3. To investigate the reasons of dissatisfaction.
of grievances.
4. To obtain where possible a speedy resolution
3. It prevents minor disagreements developing to the problem.
into more serious disputes.
5. To take appropriate actions & ensure that
4. It saves employer’s time & money as the promises are kept.
solutions are found for workplace problems. 6. To inform the employee his /her right to
5. It helps build in organisational climate based voice the grievance & take it to next stage of
on openness and trust. the procedure

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Discovery of Grievance
1. Observation.
2. Gripe Boxes.
3. Open Door Policy.
4. Exit Interview.
5. Opinion Survey

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Grievance settlement Procedure

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 1. Conciliation
Through conciliation, a third party provides assistance with a view to help the
parties, employers and employees, to reach an agreement.
The conciliator brings the employer and employees together to discuss with
them their differences and assist them in finding out solution to their
problems. Conciliation may be voluntary or compulsory.
The International Labour Organisation has defined conciliation as: “ The
practice by which the services of a neutral third party are used in a dispute as
a means of helping the disputing parties to reduce the extent of their
differences and to arrive at an amicable settlement or agreed solution. It is a
process of rational and orderly discussion of differences between the parties
to a dispute under the guidance of a conciliator.”
It is voluntary when the employer and employees resolve their difference,
amicably amongst themselves, while it is compulsory when the parties have
to participate irrespective of whether they desire to do so or not.

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 Conciliation is a process by which the representatives of workers and employers are brought together before a third party with a
view to persuading them to arrive at an agreement by mutual discussion between them. The third party may be an individual or
a group of people. The third party may also be called as mediators.
Conciliation is also called as Meditation. It is the oldest and most widely used known techniques for adjustment of labor disputes
and groups.
Appointment of conciliation officer
The appropriate government has been empowered to act to appoint such Number if persons as it thinks fit to be conciliation
officers. While the Commissioner /additional commissioner/deputy commissioner is appointed as conciliation officer for
undertakings employing 20 or more persons, at the State level, officers from central Labour Commission office are appointed as
conciliation officers, in the case of Central government.
Duties of Conciliation officers (section 12)
1. To hold conciliation proceedings
2. To investigate the disputes ( no authority to make final decision)
3. To send a report and memorandum of settlement to appropriate government (expected to give judgment within 14 days of
the commencement of the conciliation proceedings)
4. If no settlement is arrived (repost to government with full facts and circumstances related to the disputes, reasons and his/
her opinion)

Powers of conciliation officers

1. Power to enter the premises
2. Power to call for and inspect documents

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 Conciliation- Process

1. Bring the two parties together 2. Listens to the case of both the parties

3. Proposes a compromise or solution to the problem which may or may not 4. Within 14 days the conciliation officer
be acceptable to the parties RENU JOGDAND has to send a report to the government 45
2. Arbitration:
Arbitration is a process in which the conflicting parties agree to refer their dispute to a neutral third
party known as ‘Arbitrator’. Arbitration differs from conciliation in the sense that in arbitration the
arbitrator gives his judgment on a dispute while in conciliation, the conciliator disputing parties to
reach at a decision.
The arbitrator does not enjoy any judicial powers. The arbitrator listens to the view points of the
conflicting parties and then gives his decision which is binding on all the parties. The judgment on
the dispute is sent to the government. The government publishes the judgment within 30 days of its
submission and the same becomes enforceable after 30 days of its publication. In India, there are
two types of arbitration: Voluntary and Compulsory.
Arbitration is effective means of resolving disputes because it is :
1. Established by the parties themselves and the decision is acceptable to them.
2. Relatively speedy when compared to courts and tribunals.

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3. Adjudication
1. The ultimate legal remedy for the settlement of an unresolved dispute is its reference to
adjudication by the government.
2. The government can refer the dispute to adjudication with or without the consent of the
disputing parties.
3. When the dispute is referred to adjudication with the consent of the disputing parties, it is
called ‘voluntary adjudication.’ When the government herself refers the dispute to adjudication
without consulting the concerned parties, it is known as ‘compulsory adjudication.

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3. Adjudication
The Industrial Disputes Act, 1947 provides three-tier machinery for the adjudication of industrial
disputes:

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 3. Adjudication- Labour Court:
Under Section 7 of the Industrial Disputes Act, 1947, the appropriate Government by notifying in the
official Gazette, may constitute Labour Court for adjudication of the industrial disputes The labour court
consists of one independent person
The labour court deals with the matters specified in the second schedule of the Industrial Disputes Act,
1947.:
◦ Discharge or dismissal of workers including reinstatement or grant of relief to workmen wrongfully dismissed.
◦ Withdrawal of any statutory concession or privilege.
◦ Illegality or otherwise of a strike or lockout.
◦ All matters other than those reserved for industrial tribunals.

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 3. Adjudication- Industrial Tribunal:
Under Section 7A of the Act,
the appropriate Government
may constitute one or more
Industrial tribunals for the
adjudication of industrial
disputes. Compared to labour
court, industrial tribunals
have a wider jurisdiction. An
industrial tribunal is also
constituted for a limited
period for a particular dispute
on an adhoc basis.
The matters that come within the jurisdiction of an
industrial tribunal include the following:
Wages, including the period and mode of payment.
2. Compensatory and other allowances.
3. Hours of work and rest periods.
4. Leave with wages and holidays.
5. Bonus, profit sharing, provident fund, and gratuity.
6. Classification by grades.
7. Rules of discipline.
8. Rationalization
9. Retrenchment of employees and closure of an
establishment or undertaking.
10. Any other matter that can be prescribed.
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3. Adjudication- National Tribunal:
This is the third one man adjudicatory body appointed by the Central Government by notification in
the Official Gazette for the adjudication of industrial disputes of national importance. The central
Government may, if it thinks fit, appoint two persons as assessors to advise the National Tribunal.
When a national tribunal has been referred to, no labour court or industrial tribunal shall have
any jurisdiction to adjudicate upon such matter.

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