Management of work force of an organisation ie how to manage the different people working together in a organisation. HRM is a management function that helps managers recruit, train and develop members for an organisation.


HRM is concerned with the people dimension in management. Since every organisation is made up of people, acquiring their services, developing their skills, motivating them to higher level of performance, and ensuring that they continue to maintain their commitment to the organisation are essential to achieving organisational objectives. This is true, regardless of the type of organisation ie government, business, education, health.

Organisational Objective – To recognise the role of HRM in bringing about organisational effectiveness.  .Objectives of HRM  Societal objectives – To be socially responsible to the needs of the society. at least in so far as these goals enhance the individual‘s contribution to the organisation. Personal Objective – To assist employees in achieving their personal goals.   Functional objective – To maintain department‘s contribution at a level appropriate to the organisation‘s needs.

Objective of HRM  HRM Obj. Union Management relations Organisational Objectives 1. Legal compliance 2. Appraisal 6. Placement . Selection 4. Employee relations 3. Societal Objective Supporting function 1. HRP 2. Benefits 3. Training & Development 5.

Objectives of HRM

HRM Obj.
Functional objectives

Supporting function
1. Placement 2. Assessment

Personal Objectives

1.Training & Development 2. Compensation

Competitive challenges and HR

3. 4. 5.

Going global Embracing new technology Managing change and organisation culture Responding to the market Containing costs
  

Downsizing Outsourcing and employee leasing Enhancing productivity

Other challenges faced

Demographic and Employee concerns
    

Demographic changes Diversity of backgrounds Age distributions Gender distribution Rising level of education

Cultural changes

 

Concern for employee rights Changing attitude towards work Balancing work and family

Functions of HR MANAGERIAL FUNCTIONS Planning Organising Directing Controlling OPERATIVE FUNCTIONS Staffing Development Compensation Motivation Maintenance Integration .

360 degree feedback Job design. Induction. Performance & potential management.Operative functions of HR STAFFING Job analysis. Career management. Placement. Recruitment. Selection. Internal Mobility Competency profiling. Work scheduling. Incentives and benefits DEVELOPMENT COMPENSATION & MOTIVATION . Compensation administration. HRP. Training and development. Job evaluation.

Operative functions of HR (contd. Discipline. Welfare INTEGRATION Employment relations. Safety. Participation .) MAINTENANCE Health. Grievance. Trade unions.

Negotiation.  Welfare aspect – Housing. Transfer. Selection.Scope of HRM Labour or Personnel aspect – Recruitment.  . Transport. Health and Safety. Grievance handling etc. Promotion etc. Lunch room.  Industrial relation aspect – Union Management relations. education etc.

External Technology Professionalism Economic HRM Social & cultural Political & legal Union .HRM Environment .

Internal Policies HRM Mission Organisational Conflict .HRM Environment .

(3)Sence of Security (4)Control . Importance -:  (1) Clear Thinking (2)Uniformity & Consistency of Admin.HRM Policies  Policy – is predetermined course of action established to guide the performance of work towards accepted objectives.

Specific Policy – Related to specific issues like Recruitment. Appealed policies – Made on request to handle certain situation. General policies – Do not relate any issue. Promotion etc. may represent the priority of Top Mgmt. Transfer. Imposed policies – Imposed by Govt & Legal authorities.Types of HR Policies      Originated policies – Made by top Management. or if certain aspects are missing in the main policy. (WPM). .

It usually includes the formulation of a goal and set of action plans for accomplishment of that goal.  Strategy has two components -: 1) Planning 2) Action .Strategic Management  Strategy -: is a way of doing something.

implementing and evaluating business strategies to achieve organisational objectives. formulation of strategies.  Analysis of the environment. and evaluation and control are the phases in the strategic management process.  .Strategic Management Strategic management is understood as the process of formulating.

 .Strategic Human Resource Management  The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. Formulating and executing HR systems—HR policies and activities—that produce the employee competencies and behaviors the company needs to achieve its strategic aims.

 Supplying information regarding the company‘s internal human strengths and weaknesses.  .HR‘s Strategy Formulation Role  HR helps top management formulate strategy in a variety of ways by.  Build a case that shows how—in specific and measurable terms—the firm‘s HR activities can contribute to creating value for the company. Supplying competitive intelligence that may be useful in the strategic planning process.

Right person ---At Right place ---At Right time.   .Human Resource Planning  Meaning – Assessment of Human Resource Requirements & also the time & stages of requirement. Definition – HRP is defined as the process by which management determines how an org should move from its current manpower position to its desired manpower position.

 To forecast future requirement for HR.  . (Downsizing).  To asses the surplus and shortage of HR.  To anticipate the impact of technology on jobs and HR.Objectives of HRP To ensure optimum use of existing HR.  To provide control measures to ensure that necessary HR are available as and when required.

To determine the level of Recruitment and Training.  To estimate the cost of HR and Housing needs of employees. (Or HRA).Objectives of HRP – Contd.  To meet the needs of expansion and diversification programmes.  .

Importance of HRP  Future Personnel needs Creating highly talented personnel   International Strategies Foundation of personnel function Resistance to change and move   .

Factors Affecting HRP Organisational growth cycle & planning Outsourcing HRP Environmental Uncertainties Strategy of Organisation .

. growth slows down. Retirements.Factors Affecting HRP  Organisation growth cycle and planning-: HRP is Critical when organisation enters the growth stage. Mature organisations experiences less flexibility and variability. HRP is dominated by Layoffs. Retrenchment.

It can result in Recruitment. Training. Succession Planning. Retrenchment etc. . HR planners deal with uncertainties. Social and other changes affect the organisation.Factors Affecting HRP  Environmental Uncertainties -: When Political.

Factors Affecting HRP  Strategy of Organisation -: Strategic plan of the organisation defines the organisation‘s HR needs. Internal Growth Narrow Informal Reactive Inflexible Growth through Mergers Broad Formal Proactive Flexible .

.Factors Affecting HRP  Outsourcing -: Most organisations have surplus labour and they do not want to worsen the problem by hiring more people. Outsourcing is the option left.

HRP Process Environment Org objectives & policies HR Need Forecast HR Supply Forecast HR Programming HRP Implementation Control & Evaluation Surplus Shortage .

HRP Process (Contd.: Economic factors Technological Changes Demographic changes Political and legislative issues Social concerns 1) 2) 3) 4) 5) .)  Environmental Scanning .

HRP Process (Contd.  . this implies that the objectives of the HR plan must be derived from Org objectives.)  Org objectives and policies-: HR plans need to be based on org objectives.

)  HR Demand forecast-: The process of estimating the future quantity and quality of people required.    . production level) and external (Competition. The basis of forecast will be annual budget and long term corporate plans. employee separations.HRP Process (Contd. change in technology). Demand forecasting must consider several factors like internal (Budget constraints. laws.

)       Demand forecasting techniques are-: Managerial judgment Ratio trend analysis Delphi technique Regression analysis HR Supply forecasting-:  Supply forecasting measures the number of people likely to be available from within and outside an org. .HRP Process (Contd.

the two must be reconciled or balanced in order that vacancies can be filled by the right employee at the right time.)  . Succession plan etc.  HR Plan Implementation-:  Implementation requires converting an HR plans into action. (Recruitment.HRP Process (contd.) HR Programming-:  Once the Org‘s HR Demand and Supply are forecast. Training.

HRP Process (contd.)  Control and Evaluation -: Critical to have proper control and regular checks to know the achievements of HRP. Surplus Shortage R&S Restricted hiring. Lay off .

)  .HRIS  HRIS is a database system that keeps important information about employees in a central and accessible location. The information provided by HRIS can help the organisation to gain competitive advantage. (SWOT of org.

Position related information (codes. Org name.Information categories of HRIS  Basic non confidential information-: Employee name. effective date) . tittles. Work location  General non confidential information -: Social security number.

Amount of last change.)  General information with salary -: Current salary. Educational data  .Info categories of HRIS (contd. Reason for last change. Confidential information with salary -: Information of previous category. Effective date.

Performance evaluation information.Info categories of HRIS (contd. Projected salary increase information. Bonus information.)  Extended information with salary -: Information of previous category. .

Job Analysis  Job analysis is the process of collecting job related information. Such information helps in the preparation of job description and job specification. Job Analysis Job Description Job Specification .

Location. Training. Working condition etc. Usually contains items such as Education. Job summary.Job Analysis (contd. Experience.  . Communication skills etc.) Job description -: A statement containing items such as Job title.  Job specification -: A Statement of human qualifications necessary to do the job.

Purposes of Job Analysis HRP  Recruitment & Selection  Training & Development  Remuneration  Safety & Health  Performance Appraisal  .

Methods of Collecting Job Data Observation  Interviews  Questionnaire  Technical Conference Method  .

direct way to find overlooked information. Information sources    Methods of Collecting Job Analysis Information: The Interview    Interview formats Structured (Checklist) Unstructured Individual employees Groups of employees Supervisors with knowledge of the job Quick. Distorted information  Advantages   Disadvantages  .

  Quick and efficient way to gather information from large numbers of employees Expense and time consumed in preparing and testing the questionnaire  Questionnaire formats   Disadvantages  Structured checklists Opened-ended questions .Methods of Collecting Job Analysis Information: Questionnaires  Information source  Advantages  Have employees fill out questionnaires to describe their jobrelated duties and responsibilities.

 Step 2: Review relevant background information.     . Step 3: Select representative positions. Step 4: Actually analyze the job.Steps in Job Analysis  Step 1: Decide how you‘ll use the information. Step 5: Verify the job analysis information. Step 6: Develop a job description and job specification.

function). knowledge) for each job in a way that meets the need of the employees and the organisation. .Job Design  Job Design is defines as -: It integrates work content (tasks. the rewards & the qualifications required (skills.

3) .Job Design  Job Design involves three steps -: Specification of individual tasks. 1) 2) Specification of the methods of performing each tasks. Combination of tasks into specific jobs to be assigned to individuals.

Methods of Job Design Job Design Methods -: Job Rotation Job Simplification Job Design Job Enlargement Job Enrichment .

 .Job simplification Complete job is broken down into small subparts.  This is done so that the employees can do these jobs without much specialized training.

 Rapid product and technological change  Global competition  Political instability.Dejobbing  Broadening the responsibilities of the company‘s jobs. External factors leading to dejobbing. and encouraging the employees not to limit themselves to what‘s on their job descriptions.  Demographic changes  Rise of a service economy.  .

Job Carving Creating a job that fits the unique abilities of the worker.  .  Matching the worker‘s unique ―contributions‖ and assets with the needs of an employer.

The result is a pool of applicants from which new employees are selected.  Recruitment is a process of inviting applications from prospective employees.  .Recruitment The process of finding and attracting capable applicants for employment.  Recruitment is a positive process. The process begins when new recruits are sought and ends when their applications are submitted.

Meet the organisation‘s legal and social obligations regarding the composition of its workforce. Determine the present and future requirements of the organisation in relation with the HRP and Job Analysis.  . Purpose & Importance of Recruitment  Increase the pool of job candidates at minimum cost.

 . Educational Institutions. Recruitment at factory Gate. Employment Exchange. External Sources-: Press Advertisements . Promotions. Labour Contractors.Sources of Recruitment  Internal Sources -: Transfer . Placement Agencies.

Recruitment Process Recruiting Required Personnel Search for Perspective Employees Internal Sources External Sources Evaluating effectiveness of process .

Contains info like no of person required.Recruitment Process Personnel Requisition -: Requisition for recruitment from other deptt. info about job. duties to be performed.. desired qualification.  Locating and developing sources of required no and type of employees.  Identifying the prospective employees with required characteristics. time of appointment.  .

) Communicating the info about the org.  Evaluating the effectiveness of recruitment process.Process (contd.  . the job and the terms and condition of service.  Encouraging the identified candidates to apply for jobs in the org.

Alternatives to Recruitment  Overtime Employee Leasing   Temporary Employment .

Selection  Selection is the process of picking individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organisation.  . Selection is a negetive process.

Selection Procedure Preliminary Interview  Application blank  Selection Test  Employment Interview  Reference Check and Background Analysis  Medical Examination  Final Approval  Evaluation  .

Test and Interview  Psychological tests -: Aptitude test Informal Interview  Formal Interview  Depth Interview  Stress Interview  .

.  Orientation also called Induction. their co – workers and the organisation.Induction Or Orientation  Planned introduction of employees to their jobs. is designed to provide a new employee with the information he or she needs to function comfortably and effectively in the organisation.

 To develop among the newcomers a sense of belonging and loyalty to the organisation.  .  To develop a close and cordial relationship between newcomers and the old employees and their supervisor.Objectives of Induction To help new comer overcome his natural shyness and nervousness in meeting new people in the environment.

locker room etc. rest period.Objectives (contd.) To ensure that the newcomers do not form negative or false impression and attitude towards the organisation or the job because first impression is the last impression.  .  To give newcomers necessary information such as leave rules.

 .Advantages of Formal Induction Helps in build up a two way channel of communication between management and workers.  Effective induction helps to integrate the new employees into the organisation and to develop the sense of belonging.  Proper induction facilitates informal relations and teamwork among employees.

Types of Induction Programme Formal  Informal  Individual  collective  .

Contents of Induction Programme History and operation of company  Products and services of company  Policies and procedures of company  Grievance procedure  Benefit and services for employees  Opportunities for training and development.  . promotion. transfer etc.

Placement  Placement refers to the allocation of people to jobs. transfer. or demotion of present employees. . It includes initial assignment of new employees and promotion.

Job in this context may be classified into three categories. 3.Placement Problems  Difficulty with the placement is that we tend to look at the individual but not at the job. Independent Sequential Pooled .  1. 2.

Training & Development Training is an attempt to improve current or future employee performance by increasing an employees ability to perform through learning. (Employees)  . usually by changing the employee‘s attitude or increasing his or her skills and knowledge.  Training refers to the process of imparting specific skills.

T&D  Development refers to learning opportunities designed to help employees grow.  . (Executive) Education is theoretical learning in classroom.

T&D  The need for training and development is determined by the employee‘s performance deficiency computed as follows-: Training & Development need = Standard Performance – Actual Performance .

Application base. 2. Narrow Perspective.Job Experience. Classroom learning. 3. 3. Specific Task. 4.  . General Concepts.Theoretical Orientation. 4. 2.  Education -: 1.Difference between T & Edu Training -: 1. Broad Perspective.

Inputs in T & D Skills  Education  Development  Ethics  Attitudinal Changes  Decision making and Problem solving skills  .

T & D as a source of Competitive Advantage

T & D offer competitive advantage to a firm by removing performance deficiencies, making staff stay long, minimising accidents, Scrap & damage and meeting future employees needs.

Training Program
Need Assessment Deriving Instructional Objectives Designing Training & Development Program Implementation of Training Program Evaluation

Training Process

Need Assessment -: Diagnoses the present problems & future challenges to be met through training and development. Need Assessment Methods -: As follows Group Assessment – (intro of new product.) Org goals & objectives. Personnel skill inventories Exit interviews Customers Satisfaction data

1. 2. 3. 4.

Training Process  Needs Assessment & Remedial measures Performance Deficiency Lack of Skill & Knowledge Other Causes Training Non – Training Measures .

Training process  1. 3. 3. Individual Analysis -: Performance Appraisal Interviews Questionnaires Attitude Surveys. Issues in need assessment -: Org Support Org Analysis Task and KSA analysis Person Analysis 2. 2. . 4. 4.  1.

Methods & techniques? 4. Where to conduct the program?  . Level of training? 5. Who are the trainers? 3.  Designing training & development program -: 1. Who are the trainees? 2. Learning principles? 6.Training Process Deriving an instructional objectives -: It help to know the inputs for the training program and as well as for the measures of success that would help assess effectiveness of the training program.

Training process  Implementation of training program Evaluation  .

Apprentice training . On the job -: Orientation Training ie Induction Job instruction – Info about how to conduct the job.Doctors Job rotation . 3.Bank Coaching – Cricket team .Types of training  1. 4.ITI Internship / Assistantship . 5. 6. 2.

Provides awareness about their own behaviour & how other percieve them. . Lecture – Verbal presentation of information. Simulation – technique that duplicates as nearly as possible actual condition encountered on the job.Types of training  1. 5. 3. 2. Off the job -: Vestibule – Utilisation of actual equipments. 4. Laboratory / Sensitivity training – smaller group ie 12 or less. Role playing – is to create realistic situation.

Performance Appraisal  It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development. .

  To asses the training and development needs of employees.Objectives of Performance Appraisal  Promotions based on competence and performance. . To confirm the services of probationary employees upon their completing the probationary period satisfactorily.

 . Finally. performance Appraisal can be used to determine whether HR programmes such as selection.Objective of Performance Appraisal  To decide upon pay rise where regular pay scales have not been fixed. training and transfers have been effective or not.

 .  Performance Appraisal – Describes the job relevant strengths and weaknesses of each individual.  Performance Standards – Translate job requirements into levels of acceptable or unacceptable performance.Relationship of PA and Job Analysis Job Analysis – Describe work and Personnel requirement of a particular job.

PA and Competitive Advantage  Improving Performance Making Correct decisions   Minimizing job dissatisfaction and turn over Consistency between organizational strategy  .

Performance Appraisal process Objective of Performance Appraisal Establish Job expectations Design an Appraisal Programme Appraise Performance Performance Interview Use Appraisal Data for Appropriate Purposes .

Quantity. What should be rated (Quality. What Methods to be opted. When to Evaluate. Need For Supervision). team. Time.P A Process    Objective – Correct or Improve performance Expectation – In forming what is expected from employee Design Appraisal – Helps in posing question which needs answers like Formal v/s Informal Appraisal. . individual). Who are Raters. Cost effectiveness. whose performance should be rated (group.

 Performance Interview  Use the Appraisal Data – HRP. Remuneration. Quality and time of Output. Promotion. Training and Development etc.  .P A Process Appraise the Performance – Quantity.

 180 Degree – Superior and Peer Group  270 degree – Superior. Subordinates. Clients.Performance Appraisal Methods 90 Degree – Only Supervisor is Evaluator. Clients and Self  720 Degree .Superior. Peer and Subordinates  360 Degree – Superior. Subordinates. Peer.Superior. Clients and Self  540 Degree . Self and Family  . Peer. Peer. Subordinates.

Work hard.: Rating Scales – Excellent-Good-AcceptableFair-Poor (Simplest & most popular) Checklist – Yes / No (Is employee interested in job? Does have adequate qualification?) Forced Choice Method – Two Choices and no other option (The rater is forced to select statements which are readymade) Learns fast ----.Performance Appraisal Methods      Past Oriented Methods . Critical Incident Method – this approach focuses on certain critical behaviours of an employee .

 .Performance Appraisal Methods Behaviourally Anchored Rating Scales – On the basis of the behavioural criteria of the employee rating is being done by the superior. usually from corporate office or HR department.  Field Review Method – Some one outside the assessee‘s own department.

Future Oriented Methods 360 Degree Appraisal  Assessment Centers (Potential Appraisal)  Psychological Counseling  .

Problems in Performance Appraisal Leniency or Severity  Central Tendency  Halo Error  Rater Effect – Rating based on raters attitude towards ratee  Primacy or Recency effects  Perceptual Set – Raters perception  .

Job Evaluation  Job evaluation seeks to determine the relative worth of each job so that salary differentials can be established.  In job evaluation only jobs are rated unlike in performance appraisal where only job holders are rated. .

Job Evaluation Process Objectives of Job Evaluation Job Analysis Job Description Job Specification Job Evaluation Programme Wage Survey Employee Classification .

Methods of Job Evaluation Non Analytical Methods  Analytical Methods  .

 .Non Analytical method  Ranking Method – The evaluation committee assesses the worth of each job on the basis of its title or on its contents. if the later is available. Job Grading Method – There is a yardstick in the form of job classes or grades.

as linking executive pay to company performance is supposed to increase stockholders wealth.Compensation Remuneration is the compensation an employee receives in return for his or her contribution to the organisation. executive pay is of special interest.  Stockholders – To stockholders.  .  Society – Some people see pay as a measure of justice.

it is a major expense. In addition to treating it as an expense. First.Compensation Managers – Compensation influences their success in two ways.  .  Employees – The pay individuals receive in return for the work they perform is usually the major source of their financial security. a manager also uses it to influence employee behaviour and improve organisation performance.

3. Financial – : Hourly and monthly rated wage and salary. Incentives ie individual plans and group plans. furnished house (Offered to retain competent executives) . Medical care. 4. Perquisites are Company car. Fringe benefits ie PF . Group Insurance. Gratuity.Components of Compensation  1. 2.

. Growth Prospects.Components of Compensation  Non Financial -: Recognition.

Going Rate Cost of Living – Escalatory clause Labour Unions Labour Laws – Payment of wages act1936. Payment of Bonus act 1965. 3. Society Factors Influencing Employee Remuneration . 4. Minimum wages act 1948. 5. External -: Labour Market – Demand & Supply. Equal remuneration act 1976. 1. Payment of gratuity act 1972. 2.

Experience. Seniority 1. .Factors Influences Employee Remuneration  Internal -: Business Strategy – Rapid growth = High Pay Job Evaluation and Performance Appraisal Employee – Performance . 2. 3.

Devising a Remuneration Plan Job Description Job Evaluation Job Hierarchy Pay Survey Pricing jobs .

Challenges of Remuneration Salary reviews  Pay secrecy  Skill based pay  Employee Participation  Above Market or Below Market Rates  Monetary V/S Non Monetary Rewards  Comparable Worth  .

Provides for bare essentials plus frugal comforts.Concept of Wages    Minimum Wage – Wage for sustenance of life plus for preservation of the efficiency of worker. . (Determined through Legislation) Fair Wage – Equal to the rate prevailing in the same trade and in the neighborhood or equal to the predominant rate for similar work throughout the country. Living Wage – Higher than fair wage.

The other name for incentives is ―Payments by results‖.Incentives  Incentives are variable rewards granted to employees according to variations in their performance. . But the word ‗Incentives‘ is most appropriate because of its motivational content.

better utilisation of equipments.Importance of Incentives Motivation of worker for higher efficiency and greater output.  Other advantages – Reduced Supervision.  Increased earning helps employee to improve standard of living.  Earning of employees would be enhanced due to incentives. reduced lost time.  . reduced absenteeism and turnover and increased output.

When job is restudied there are chances that it may yield in lower earning in terms of earning incentives as new and high challenging jobs offers more scope for earning as compared to old jobs.Disadvantages of Incentives    Deteriorate the quality of product as employee want to earn more by producing more quantity of products. Increases jealousy among the workers as the person earning less is jealous of the person earning more. .

 .Employee benefits  Employee benefits and services include any benefits that the employee receives in addition to direct remuneration. Employee benefits and services are alternatively known as fringes or hidden payroll.

Types of employee benefits
 1) 2)


For fringe benefits three criteria‘s are needed to be fulfilled. It should be computable in terms of money. The amount of benefit is not generally predetermined. No contract, indicating when the sum is payable, should exists.

Fringe benefits
Legally required payments -: Old age, survivors, disability and health insurance.  Contingent benefits -: pension plans, group life insurance, group health insurance, maternity leave, sick leave, service awards.  Other benefits -: payments for the time not worked like holidays, leaves.

Benefits and services
Treats -: free lunches, festival bashes, dinner for the family.  Awards -: trophies, certificates, letter of appreciation.  Office environment -: flexible hours.  Tokens -: movie tickets, vacation trips.  On the job -: job rotation, representing the company at public meetings.

Administration of fringe benefits Establish benefits objectives Assess environmental factors Access competitiveness Communicate benefit information Control benefit cost and evaluation .

Executive remuneration  1) 2) 3) 4) 5) Components of remuneration -: Salary Bonus Commission Long term incentives Perks .

to protect the interest of the employed and their employers. .Industrial Relations  IR is concerned with the system . and to regulate the ways in which employers treat their employees. rules and procedures used by unions and employers to determine the reward for effort and their conditions of employment.

IR cont‘d  IR is concerned with the relationship between management and workers and the role of regulatory mechanism in resolving any industrial dispute. Machinery for resolution of industrial dispute Individual grievance and disciplinary policy and practice  1) 2) 3) 4) . unions and govt. IR specially covers the following areas-: Collective bargaining Role of management .

(c) Stability in IR is a product of concession and compromises between management and unions. (b) TU are legitimate representatives of employee interest.Approaches to IR Unitary Approach – Direct negotiation with employee and participation of Govt.  Pluralistic Approach – (a) org as coalitions of competing interest. and unions are not sought. Tribunals.  . where the management‘s role is to mediate amongst the different interest group.

Approaches to IR

Marxist Approach – same as Pluralistic but feels conflict arises not because of rift between management and workers, but because of the division in the society between those who own resources and who have only labour to offer.

Parties to IR
Employees  Employee Associations  Government

Employer – Employee – Relations Employers  Employer Associations  Courts and Tribunals

Trade Unions

TU are voluntary organisations of employees or employers formed to promote and protect their interest through collective action. Though the terms employees and employers are used, when we say trade unions they generally refer to employees.

Why do employees join unions?  Dissatisfaction Lack of power Union Instrumentality   .

Union Tactics  Unions employ several tactics to deal with management are-: Strike Invoking political patronage Blackmailing Unionising 1) 2) 3) 4) .

Strategic choices before Management     Mgmt must decide whether the org should remain union free or allow unionisation. Mgmt must also choose the type of tactic to use while negotiating a new wage settlement. managers must decide what type of union mgmt relations they want. . If mgmt decide company should remain union free then they must take steps to keep union away from the org. If unionisation should be allowed.

Strategic choices before Unions  Bread and Butter V/S Political objective Adversarial V/S Co operative role Traditional issues V/S New services   .

Free Effective supervision  Open communication  Effective personnel search  Healthy and Safe working environment  Effective Employer and Employee relations  Effective remmuneration  .Strategies and Tactics for remaining Union .

Some of the major Trade Unions INTUC – Indian National Trade Union Congress  CITU – Centre of Indian Trade Unions  HMS – Hind Mazdoor Sabha  AITUC – All India Trade Union Congress  BMS – Bhartiya Mazdoor Sangh  UTUC – United Trade Union Congress  .

which is connected with the employment or non employment or terms of employment. .Disputes and Their Resolution  Acc to Industrial Dispute Act. workmen and workmen. industrial dispute mean any dispute or difference between employers and employers or between employers and workmen. 1947.

union works on party lines.445 TU – loss 3.Causes of Disputes  Wage Demands Union Rivalry (Singareni Collieries . CITUCommunist love to fight but hate to win so they have not signed any settlement in last 15 years)   .12 million tones) Political Interference (ideology differs.

Multiplicity of Labour Laws .: Management unwillingness to recognise a particular TU and dilatory tactics.Causes of Disputes  a) b)  Unfair Labour Practice . Negotiation of settlement of dispute the representatives of employers take the side of management which results in disputes.

Settlement of Disputes   a) b) c) d) e) f) Collective Bargaining (reps of employees & employers meet to solve the issue) Collective Bargaining Process-: Preparing for negotiation Identifying bargaining issues Negotiations Reaching the agreement Ratifying the agreement Administration of agreement .

Collective Bargaining is the most effective method of resolving industrial disputes.Settlement Cont‘d.  Collective Bargaining takes place when representatives of trade union meet management representatives to determine employee wages and benefits and to solve other issues.  .

Settlement of Disputes Grievance Procedure  Arbitration  Conciliation  Adjudication  Consultative Machinery  .

Settlement Cont‘d.  Grievance Procedure -: Stage One (Sectional Head) 5 days Stage two (Deptt Head) 5 days Stage Three (Divisional Head) 10 days Fourth Stage (Union) .

Sec 4. and make recommendations which are binding on both the parties.Settlement Cont‘d  Arbitrations refers to the procedure in which a neutral third party studies the dispute.  . says that the govt shall appoint conciliation officers and their main duty is to mediate and promote settlement of Industrial Dispute. listen to both the parties and collects the information . Conciliation -: As per the Industrial Dispute act 1947.

Settlement Cont‘d  Adjudication a mandatory settlement of Industrial Dispute by a labour court or Tribunal. Consultative Machinery  .

.Safety and Health There is a saying ― Precaution is always better than cure‖.

there was a gas leak from a Union Carbide plant which led to killing over 20000 thousands of people in Bhopal and become the worst industrial accident in India due to negligence of proper safety features. Survivors still suffer from various diseases and battling for life and waiting for their turn to get compensated. .Safety and Health Bhopal Gas Tragedy 23 years ago.

5) Mumbai ONGC‘s helicopter crash in the offshore Heera Panna oilfield‘s Neelam area in August 2003.Safety and Health Major Accident in last decade (India)-: 1) Bhopal gas leak in December 1984.  . 3) Gwalior blast at a dyeing department of GRASIM in December 1991. 4) Khalgaon boiler explosion in NTPC in October 1992. 2) Delhi gas leak from Sriram foods and fertilizers in December 1985.

Safety and Health  Major International accident-: 1) NASA – Columbia space shuttle broke apart during reentry on Feb 1. . Wing damage sustained during launch by a chunk of fuel tank insulation was cited as the accident cause. 2003.

Stated differently. Research says ― Every twenty seconds of working minute of every hour throughout the World. safety refers to the protection of workers from the danger of accidents.  . someone dies as a result of an industrial accident‖.Safety and Health  Safety -: refers to the absence of accidents.

Safety and Health  Types of accidents -: Accidents Internal Major External Minor Fatal Disability .

Safety and Health Disability Temporary Partial Total Permanent Partial Total .

Safety and Health Internal – If a bone is fracture which cant be seen and judged from open eyes.  Temporary – If a person recovers disability from which he can recover fully after certain period.  .  Major – Accidents results in death or results in prolonged injury.  Minor – A scratch or injury does not seriously disable.  External – wounds which are seen through our open eyes.

.Safety and Health  Permanent – Any injury which permanently disabled the person.

wastage of time. damages of equipment. .Safety and Health  1) 2) Need for safety -: Cost saving – Direct cost ie compensation and Indirect cost ie loss of production. employees feel safe and produce good quality and quantity. Increased productivity – Safety promotes productivity.

Safety and Health 3) Moral – Providing safety to the employee has moral dimension. in addition to being a legal requirement. Can monetary compensation be a substitute for person? . An employer has no right to cause accident to an employee which might kill the person. Monetary compensation does not bring the person back as a healthy individual.

Safety and Health 4) Legal – Supreme court says ― An enterprise which is engaged in a hazardous dangerously industry which poses a potential threat to the health and safety of the persons working in the factory or industry must ensure that neither the workers nor the society suffers any kind of damages‖ . . All safety related requirements to be fulfilled by the industry as legal requirement before start of work.

inadequate supervision.  . Five principles that govern the safety program of an organisation are -: 1) Industrial accidents are a the result of multiple factors.Safety and Health Safety Program -: Safety program deals with the prevention of accidents and with minimising the resulting loss and damage to person and property. no attention to design safety system. So these factors have to be traced to their root causes. which are usually falls in the management system arising from poor leadership from top.

Safety and Health 2) The most important function of safety programmes is to identify potential hazards. provide effective remedial actions. inspections. . c) Systematic procedures for carrying out safety checks. This is possible only if there are -: a) Effective system for reporting all accidents causing damage or injury. b) Adequate accidents records. d) Methods of ensuring that safety equipment is maintained.

4) The management and supervision must be made fully accountable for safety performance in the working areas they control. .Safety and Health 3) Safety policy of the organisation should be determined by the top management and it must continuously involved in monitoring safety performance. 5) All employees should be given thorough training in safe methods of work and they should get regular guidance on eleminating safety hazards.

Safety and Health  Safety Process -: Strategic choices development of safety policy Organisation for safety Analysis of causes of accidents Implementation of program Evaluation of effectiveness .

Safety and Health  1) 2) Strategic choices – Management must make decision regarding safety of their workers. Formal have written regulation & carefully monitored. Must decide whether a safety program will be formal or informal. Informal are enforced because of pressure and include good training. . Some strategic choices are-: Must determine the level of protection. Some co because of financial constraints prefer low level.

Safety and Health 3) Management can be proactive or reactive. 4) Management can use safety of workers as a marketing tool of the organisation. .

Safety and Health   1) 2) 3) 4) 5) Health . Health in Industry can be discussed through following angles-: Physical health Mental health Noise control Stress management Violence at work place .: The well being of the employees in an industrial establishment is affected by accidents and by ill health – physical as well as mental.

Office equip. smokes Leukemia Radiation Reproductive problems Radiation Vision Chemical fumes. Hearing High noise level .Safety and Health  Health hazards -: Health hazards Causes Lung cancer oven emissions.

Safety and Health  Mental health -: Specially at executive cadre. Three reasons for this development are mental breakdowns because of pressure & tensions. Mental illness alcoholism & poor human relations. Mental disturbances because of reduced productivity & lower profits. .

Safety and Health  Noise Control -: Noise can only be minimised but can not be totally eliminated. . Constant exposure to noise not only effects hearing ability but also effect the general health of the employees.

but it has positive dimension also. Stress is mostly understood to be negative. it is called eustress. When stress brings out something better from an individual.  Violence at work place -:  .Safety and Health Work stress -: refers to an individuals response to a disturbing factor in the environment .