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Soofi & soofi Management Consultants
Stereotypical Practices of Personnel Management and Human Resource Management
Approaches of Approaches to
Time ad planning perspective
Short-term Reactive Ad-hoc Managerial Compliance External Controls Pluralist Collective Low trust Bureaucratic Centralized Defined roles Specialist and / or Professional
Human Resource Management
Long-term Proactive Strategic Integrated Commitment Self-Control Unitarist Individual High trust Organic Devolved Flexible roles Largely integrated into line management
Psychological Contract Control Style Employee relations perspective Preferred structures / systems Roles
Maximum utilization human asset accounting
Life – Cycle Stages
Maintain labor peace and employee motivation and moral
Labor Set basic Employee employee Relations relations Philosophy and Organization
Control Maintain labor costs labor and peace maintain labor peace. Improve productivity
Source: Storey Sisson (1993,p.61), adapted from Kochan and Barocci (1985,p.104)
1. Factories Act, 1934 / Payment of Wages Act. 1936 6. Industrial Relations Ordinance, 2002
7. Punjab Fair Price Shop 2. Apprenticeship ordinance, (Factories Ordinance, 1962 1971)
3. Provincial Employees Social Security Ordinance 1965 4. Standing Orders Ordinance, 1968 5. Companies Profits (Workers Participation) Act, 1968
8. Cost Of Living Relief Act 1973. 9. N.I.R.C. 1973.
10. Employees Old Age Benefit Act 1976.
Occupier – Owner – Ultimate Control Factory Manager – Design: 2.10 Days Sick . Notice to inspector: Form-A (Rule-3) Name Of Factory. Over Crowding. One hour (After six hours working) Extra Pay – Overtime: Twice ordinary rate of pay Holiday with Pay: Weekly Rest Annual 14 Consecutive Days (12 Months Continuous Service). 5. reasonable.Factories Act 1.it’s situation-Nature Of Manufacturing.As notified by Govt. Casual . Health and Safety – CleanlinessVentilation and Temperature: Circulation of Fresh Air-Temperature 6. . Light – Drinking Water-250-cooling and Urinal (Separately for Male / Female)-Spittoons-Periodical Medical-Checkup (July-Jan-Hygiene Card) – Compulsory Vaccination – Welfare Officer (Not Less than 500 Workers) – Precaution Against Fire.16 Days / Half Pay Festival .500 cft 7. 3. 4. Working Hours (Weekly) – Max: 48/Week-Daily 9 Hours Max. Interval for Rest: Half an hour (Five hours working.
Probationer _ Provisional. Badli_ Temporary Absent.Standing Orders Ordinance-1968 APPLIES:-20 Or More Wokmen Classification of Workman Permanent _ Nature Of Work Permanent. Temporary _Work Temporary Nature Apprentice_ Ordinance.1962 Group Incentive Scheme Group Insurance Bonus 10 .Permanet Vacancy.C Gratuity Misconduct Dismissal .
all provisions of the ordinance are applicable without any exception. once the number of workmen is at 50 or more in any industrial establishment employed on any day of the preceding twelve moths. S.11 S. Disciplinary Actions (Final / Dismissal) .O15 Compulsory Group Insurance.O 10-B. Payment of Gratuity Punishment – From Misconduct.P.12(6) and (8). Enquiry Procedure.O.O.W.O. Industrial & Commercial Employment (Standing Orders) Ordinance 1968 Applicability Applicable to all industrial and commercial establishment employing 20 or more workmen on any day during the preceding twelve months. However for smaller industries establishments employing between 20 to 49 workman on any day during the preceding twelve months four exemptions form the application of S. Stoppage of Work / Lay off.12(6) & (8) S. 15 have been granted.10-B S.11.
Cont..P. Payment of Bonus:(1) Every employer making profit in any year shall pay 2[for that year within three months of the closing] that year to the workmen who have been in his employment in that year for a continuous period of not less than ninety days a bonus in addition to the wages payable to such workmen. Industrial & Commercial Employment (Standing Orders) Ordinance 1968 [10-C. W. subject to the maximum of thirty percent of such profit. . be not less than the amount of such aggregate. (2) The amount of the bonus payable shall – (a) If the amount of the profit is not less than the aggregate of one month’s wages of the workmen employed.
Cont.00 and the aggregate of one month’s wages of the workmen is also Rs. . the amount of bonus payable shall be not less than the aggregate of one month’s wages. be not less than fifteen percent of such profit.00 Illustration 2. 30.00.20. 30.P. Industrial & Commercial Employment (Standing Orders) Ordinance 1968 3[Illustration 1.. that is to say.000. 9.-. W. 30.00.If the profit is Rs. Rs.-.000.00]. 1. 30.00 and the aggregate of the workmen is Rs.000.000. (b) If the amount of the profit is less than the aggregate of referred to in paragraph (a).000.If the profit is Rs.000. Rs. the amount of bonus payable shall be not less than the thirty percent of the profit that is to say.
Punishment-quantemcommensurate with nature of fence.Misconduct Something done or omitted to be done. Compliance mandatory.C). Jurisdiction of Labour Court-Fair Enquiry. which a man of Ordinary prudence would not have done or would not have omitted to do.Industrial-50 or more.O-15) General terms-20 or more workers commercial-20 or more. Where Law not Applicable-natural Justice not to be condemned unheard whether a legal provision or not (S. Applicable: (S. .
Taking or giving bribes or any illegal gratification.The following Acts and Omission shall be treated as misconduct a) b) c) d) e) Willful insubordination or disobedience. Habitual absence without leave or absence without leave for more than ten day. fraud. or dishonesty in connection with the employer’s business or property. to any lawful and reasonable order of a superior. Willful damage to or loss of employer’s goods or property. . whether alone or in combination with others. Theft.
k) Striking work or inciting others to strike in contravention of the provision of any law. i) Habitual negligence or neglect of work. . h) Riotous or disorderly behavior during working hours at the establishment or any act subversive of discipline.f) Habitual late attendance. J) Frequent repetition of any act of omission. g) Habitual breach of any law applicable to the establishment. l) Go – slow. or rule having the force of law.
The employer shall institute independent inquiry before dealing with charges against a workman. if he so desires for his assistance in the enquiry.Other Provisions 4) No Order of dismissal shall be made unless the workman concerned is informed in writing of the alleged misconduct within one month of the date of such misconduct or of the date on which the alleged misconduct comes to the notice of the employer and is given an opportunity to explain the circumstances alleged against him. nominate any workman employed in that establishment and the employer shall allow the workman so nominated to be present in the enquiry to assist the workman proceeded against and shall not deduct his wages if the enquiry is held during his duty hours. . Provided that the workman proceeded against may.
5) Where. During the period of suspension. he shall be deemed to have been on duty during the period of suspension and shall be entitled to the same wages as he would have received if he had not been suspended. however. that the total period of such suspension shall not exceed four weeks except where the matter is pending before an Arbitrator. the employer considers it necessary. he may suspend the workman concerned for a period not exceeding four days at a time so. a Labor Court. Tribunal or conciliator for the grant of permission Under Section 40 of the Industrial Relations Ordinance 2002. the workman concerned shall be paid by the employer subsistence allowance of not less than fifty percentum of the wages. The order of suspension shall be in writing and may take effect immediately on delivery to the workman. for the purpose of conducting an inquiry into the alleged misconduct of a workman. If the workman is found not guilty. .
date. Refusal to submit explanation-proceed. Notice-name of E. venue. charge sheet reference. . Attendance inability-change date by E.O.Enquiry Explanation considered unsatisfactoryformal enquiry. time. Nominated workman employed-charges fully explained statement recorded/signed.O.
O senior-subordinate to punishing authority. .Produce defence-accusedrequest summon-accede.Assistance of other workmen-can not act legal representative-nor xxxxxx prosecuiton.Enquiry Other Points E. No ground-change of E.O-not necessary to grant.
Evidence Confined to issue-hearsay-best evidencebeginning prosecution statement xxxxx all question-no-relevant only-no xxxxrecord.Defence statement-production of documents-findings-state facts-sum upcorraboration (1971 PLC 148)-reasoning-not justified recommendations-Employer approvalsupply copy of enquiry report(1972 PLC 327) supply prceedings(1972 PLC 392) .
15(4)… Charge sheet.DISMISSAL PROCEDURE For misconduct by an employee the following four steps procedure for dismissal from service S. An opportunity is to be given to the workman to explain or respond to charges against him. independent inquiry.O. II. . and award of punishment… is compulsory:I. explanation of the workman. Written notice of alleged misconduct (charge-sheet) is given to a workman within one month.
If the workman is found guilty of misconduct in an inquiry report the employer can award punishment ranging from fine to dismissal. Where this four-steps procedure is not adopted it will amount to contravention of the provisions of the Ordinance IV. he may suspend the workman and shall institute independent inquiry by appointing an Inquiry Officer to objectively determine whether the workman is guilty or not. Employer includes the manager as per section 2(c). . If employer is not satisfied with the explanation.III. Approval of the employer is take in every case of dismissal.
R.R.other than this ordinance or any award or settlement for the time being inforce: Lock Out:-means closing of a place of employment. Industrial Dispute:-Means any dispute or difference between employers and workmen or between workmen and workmen which is concerned with the employment or Non-employment or the terms of employment or the conditions of work.O Provisions. Illegal Lock Out:-Otherwise than in accordance with I. . Settlement:-Arrived at as a result of conceliation proceedings.and is not in respect of the enforcement of any right gauranted or accrued to workers by or under any law. Illegal Strike:-Otherwise than in accordance with I.O Provisions. Conciliation:-Proceedings before conciliator. partly or wholly.Industrial Relations Ordinance-2002 Collective Bargaining Agent:-Trade Union-u/s 20.
Addresses and Occupation office bearers. Application for Registration:-President and General Secretary may apply duly signed.of Union (b) formation date (c) Titles. Names. (d) Total Membership (e) Name Of Establishment (f) Other Trade Union Registered in the establishment. Ages.S. to apply. Requirement (a) Name – Address. (g) Three copies Union constitution with resolution authorizing P/G. .Trade Unions Trade Unions and Freedom of Association-Art:17 of the constitution of the Islamic Republic Of Pakistan.
1 . discharge transfer etc). Job Contract and Manpower Supply Contract 7. 9. Disqualification – Theft. 8.C (10 Members) 40%-60% 9.2 . Tenure of CBA – Three Years 10. Affiliation of CBA with Federation – Registered with NIRC 3. . Definition of workman – Supervisors not exempted – New Job Description 2. Murder 6.Safety & Health 5.W. Physical Assault. Establishment – One Unit 4.4 .Productivity 9. Registered – Cancellation of Inactive Union Reinstatement – Compensation – High Court Stay J. (dismiss. The commission (NIRC) shall not grant interim relief against any action mentioned in Section 63(d) of this Ordinance.Min: Facilities – Contractor Labor 9.3 .Bilateral Negotiation 9.Change – Industrial Relations Ordinance 1969 Vs 2002 1.
or b) Who.Industrial Relations Ordinance 1969 Worker and Workman “Worker” and “workman” means any person not (including employment [as a supervisor or] as an apprentice) in an establishment or industry for hire or reward either directly or through a contractor whether the terms of employment b express or implied. discharged. retrenchment. being employed in a supervisory capacity draws wages exceeding rupees eight hundred per mensem or performs. functions mainly of managerial nature] . and for the purpose of any proceeding under this Ordinance in relation to an industrial dispute includes a person who has been dismissed. either because of the nature of duties attached to the office or by reason of the powers vested in him. or removal has led to that dispute [but does not include any person – a) Who is employed mainly in a managerial or administrative capacity. laid-off or otherwise removed from employment in connection with or as a consequence of that dispute or whose dismissal. retrenched. lay-off. discharge.
discharge. retrenched. . laid-off or otherwise removed from employment in connection with or as a consequence of that dispute or whose dismissal. discharged. and for the purpose of any proceeding under this Ordinance in relation to an industrial dispute includes a person who has been dismissed. Industrial Relations Ordinance 2002 Worker and Workman Worker and workman means any person not falling within the definition of employer who is employed in an establishment or industry for remuneration or reward either directly or through a contractor. retrenchment.Cont. whether the terms of employment be express or implied. lay-off or removal has led to that dispute but does not include any person who is employed mainly in a managerial or administrative capacity..
organize. . in recognition of the responsibility of mangers and administrators to plan. direct and control the activities of those who make up the work team. the term management and administration are interchangeable.Management / Administration In practice.
stationery Management of services Maintenance of building & equipment Receipt & dispatch of mail Managing budget for the above.g. supply & distribution of materials e.Administrative Functions Transport Canteen Horticulture Janitorial services Procurement. .
Management Functions Planning Organizing Directing (Leading) Staffing Controlling Manager: The one who undertakes the task and functions of managing at any level in any kind of enterprise. .
subordinate. Recommending leave.Functions Held of Supervisory Nature 1. punishment 6. issue charge sheet and recommend cases (1984 PLC 465-Tribunal) 2. Recommending leave. Supervising the process to ensure and other actions for and against that the same is done technically workers (1971 PLC 196-Labor correct (1990 PLC 423 – Tribunal) Court) 3. Appraising performance of 5. to recommend increment and to make a report (1990 PLC 693Tribunal) 8. Application of mind and supervision of work done by other (1992 PLC 154-Tribunal) 4. Guiding subordinates (PLJ 1981 Tr.C) Sanction leave. C274-Tribunal) . granting leave and recommending increments (1979 PLC 279-H. issuing or charge sheet and transfer of workers (1981 PLC 625 – Tribunal) 7. To sanction or recommend leave.
society. and medical care. service. calling. emergency relief except in section 54. undertaking. Establishment means any office. INDUSTY – SECTION 2 (XVI) Industry means any business. constituted under that section in any establishment. firm. ESTABLISHMENT 2.Industrial Relations Ordinance 2002 1. occupation or company shop or enterprise employment engaged in any which employs workmen directly organized economic activity of or through a contractor for the producing goods or services for purpose of carrying on any sale. operating through whether situated in the same public or private donations place or in different places where charitable purpose having a common balance sheet includes provision of education. if any. trade manufacture. indigent. excluding those setup business or industry and includes exclusively for charitable all its departments and branches. purposes. and profit and loss account. includes a and other needs of the poor and collective bargaining unit. .
R. or from being a member or office bearer of a trade union.O.I. murder. attempt to murder etc shall be disqualified from being elected as. a person who has been convicted or any offence under Section 70 (for embezzlement or misappropriation of trade union funds) or of a criminal offence of heinous nature within the meaning of Pakistan Penal Code such as theft. . 2002 Disqualification for being an officer of a trade union Notwithstanding anything contained in the constitution or rules of a trade union. physical assault.
other then this ordinance. . and workmen or between workmen and workmen which is concerned with the employment or non-employment or the terms of employment or the conditions of work. or any award or settlement for the time being in force.Industrial Dispute Means any dispute or difference between employers. and is not in respect of the enforcement of any right guaranteed or accrued to workers by or under any law.
L. Conventions • • INTERNAL • • • • • Climate Mutual Trust and Confidence MAJOR INFLUENCE Labor Laws Legislation by Government I.O.O.Influence on Labor Management Relations • EXTERNAL • • • Market Trend (National – International) Competitiveness Legislation on Labor Laws Govt. Conventions .L. Policies I.
• Key factors which have played a dominate role in the evolution of industrial relations practices. polices and systems in various types of industrial enterprises within the country: • • • • • • Labor Laws Case Law Government Labor Policy Managerial Styles Work Attitudes and Role Played by Unions Type of Industry .
. Resultantly. will adversely affect the industrial relations.LABOR LAWS Since early seventees. which is unfair to employers or creates further complications for them. they have been hardly of any use to the employers. Apart from causing difficulties. have been due to political expediency. CASE LAWS The decisions given by courts are equally important in influencing the industrial relations policies and environment of undertakings. most of the amendments carried in labor laws and enactments introduced. A ruling. total compliance with these laws is neither practical nor possible. At times these have the potential of making or breaking an industry.
managements are subdued and unions are supreme. a multinational company and a state enterprise. They tend to believe that such laws will continue to pile up and while implementing they will have to mould them to suit their own convenience.GOVERNMENT LABOR POLICIES The reluctance on the part of government to effect realistic changes in the labor laws send negative signals to the employers. management will strictly abide by their laid down principles but remain within the framework provided by laws of the land. Even in a family enterprise it may vary from a paternalistic approach to a strict disciplinarian style. In most of the state enterprises. In a multinational company. They get equal share in running the affairs of a factory and become instrumental in its doom . MANAGERIAL STYLES They vary in a family enterprises.
They will respect their superiors and will feel pride in obeying their instructions. This attitude of workers and ultimately their unions will be reversed in an organization run by managers lacking in competence and integrity. may be reduced by improving their working conditions. Nevertheless. In a professionally managed organization. the aggression in behavior of workers in difficult and strenuous work processes. The attitude of workforce towards and role played by their unions’ flows from the managerial style. the output of workers will be high. . TYPE OF INDUSTRY It is unfair to believe that the behavior of employees in a high tech chemical plant and a textile or re-rolling mills will be similar. The workers will believe that management will never give in on principle.WORK ATTITUDE AND ROLE PLAYED BY UNIIONS There is in fact an element of reciprocity between these and the managerial styles.
CONCLUSIONS • • • • • Legal Framework Communication Problem Solving Welfare Mutual Trust / Confidence .
police. Death grant: Rs. Maternity : Twelve weeks. not more than six weeks shall precede the expected date of confinement. Injury benefit: Daily rate of wages for a max 180 days. A. . 1500 / for funeral. excluded) Benefits : Sickness: A condition requires / necessitates medical treatment and absenteeism from work. Forces . local bodies .Provincial Employees Social Security Applies: Notified ( Service of state .
Injury benefit: Daily rate of wages for a max 180 days. 1500 / for funeral. local bodies . excluded) Benefits : Sickness: A condition requires / necessitates medical treatment and absenteeism from work. Death grant: Rs. Maternity : Twelve weeks. not more than six weeks shall precede the expected date of confinement. A. police.Provincial Employees Social Security Applies: Notified ( Service of state . Forces . .
payable to dependents. Disablement gratuity: Minor disablement rates notified. .Provincial Employees Social Security Disablement pension: On expiration of injury benefit as per rates notified. Survivors Pension: Death as result of employment injury.
proviso] (7% of max. 230 .Contribution Max. 5000 wages) Self-Assessment (Optional) [section 20A (1)] (fixed rate irrespective of employee’s wages) Rs. Rs. Employer’s Contribution pm Rs. 350 Normal of Regular Scheme [section 20 (1). Worker’s Contribution pm --N/A-- Total Contribution pm Rs. 20 [section 20A(3)] Rs. 350 Type of Scheme Max. 210 Rs.
APPLIES: Industry / establishment employing ten or more persons. .I.B. Invalidity pension: Not less than 5 years contribution paid.O. 36 months insurable employment. Contribution paid for not less than fifteen years. Contribution less than 15 but more than 2 years.E. Old age pension: Male over sixty years / female over fifty five years. Survivor pension: Death . Old age grant: Not entitled for pension .
40 Total contribution pm Rs. 9) pm (sec. 240 Rs. 240 Rs.000/. Worker’s contribution contribution pm (sec. 280 (optional scheme. 9-B) Rs.CONTRIBUTION Type of Scheme Max. 280 Normal Scheme (6% of max. 4. 40 Rs.wages) Self-Assessment Scheme Rs. Rs. Employer’s Max. no inspection for two years) . flat rate irrespective of employee’s wages.
Workmen’s Compensation Act 1923 Applies: Workman employed on monthly wages not exceeding six thousand rupees. Partial disablement: Temporary reducing earning capacity. Total or partial disablement. Compensation: Personal injury by accident in the course of employment. Total disablement: Incapacitates wholly capable of doing at the time of accident. .
Workmen’s Compensation Act 1923 Exceptions: Rate of compensation: Drunk / Drugs influence. Violation of rule securing safety Willful removal of safety guard / device. Compensation not to be assigned by operation of law.000(Death and permanent total disablement) Payment – deposit with the commission. 200. Notice and claim (S/10) Report of fatal accident (S/10-B) Penalties ( S/18 – A) . Rs.
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