PUNJAB TECHNICAL UNIVERSITY

MB 203
HUMAN RESOURCE MANAGEMENT
UNIT-IV
PUNJAB TECHNICAL UNIVERSITY
Human Recourse Management (MB 203)
Max. Marks 100
External Marks: 60
Internal Marks: 40
UNIT- IV
Industrial Relations: Meaning & Concept of Industrial Relations.
Collective Bargaining - Meaning, Scope and Objectives;
Collective Bargaining Issues and Strategies; Negotiations Skills
and Strategies; Participative Management; Employee
Grievances and their Resolution Model for Grievance
Resolution Procedure. Quality Circles: Concept, Structure. Role
of Management, Quality Circle in India, HR Audit, Contemporary
Issues in HRM.

Unit wise chapter details
Chapter Topic
1
Industrial Relations: Meaning & Concept of Industrial
Relations
2
Collective Bargaining - Meaning, Scope and Objectives;
Collective Bargaining Issues and Strategies; Negotiations
Skills and Strategies;
3
Participative Management; Employee Grievances and
their Resolution Model for Grievance Resolution
Procedure.
4
Quality Circles: Concept, Structure. Role of Management,
Quality Circle in India
5
HR Audit, Contemporary Issues in HRM.
Industrial Relations
Concept of Industrial Relations
It refers to the relationships between management and labor
or among employees and their organizations that characterize
or grow out of employment. There are two parties involved
in the employment relationship Labor and management.
It involves an attempts to have workable solutions between
conflicting objectives and values, between incentives and
economic security, between discipline and industrial
democracy, between authority & freedom and between
bargaining and cooperation.
Features of IR
Employee-employer interactions
Web of rules
Multi-dimensions
Dynamic & changing
Spirit of compromise and accommodation
Governments role
Wide coverage
Interactive and consultation
Scope of IR
Industrial
Relation
Employees
Trade
Unions
Employer
Employers
Associatio
n
The objectives of IR
Improvement in economic conditions of workers.
Regulate the production by minimizing industrial conflicts
through sate control
Socialization or rationalization of industries by making state
itself a major employer.
Vesting of proprietary interest of workers in the industry where
they are employed.
To avoid industrial conflicts and their consequences.
To extend and maintain industrial democracy.


Approaches to IR
Psychological approach : The problems of IR are
attributable to the differences in the perception of labor and
management. Both parties tend to look at factor influencing
their relations i.e wages, benefits, working conditions etc.
in different ways. Dissatisfaction with these factors compel
workers to turn aggressive and resort to strikes, gheraos tec.
Employers adopt rigid postures and draw the shutters down
when they found regulatory framework to be restrictive,
workers to be highly demanding and market forces to be
unmanageable.
Approaches to IR
Sociological Approach : Various sociological factors such as
value system, customs, and traditions affect the relation between
labor and management. Cultural pollution sets in rubbing
workers the wrong way. Such sociological changes impact
Industrial life, forcing parties to assess, analyze and find solution
to conflictful situation on a continuous basis.
Human Relation Approach : This factor says human behavior is
influenced by feelings, sentiments and attitudes. Economic and
non economic rewards must be used to meet the physiological
and psychological requirements.
Approaches to IR
Giri Approach : According to V.V.Giri (Former president of
India) collective bargaining and joint negotiations be used
to settle dispute between labor and management. Outside
interference must be avoided at all cost while resolving the
differences. Trade unions should use voluntary arbitration
in place of compulsory adjudication.
Approaches to IR
Gandhian Approach :Gandhi ji accepted the worker's right to
strike but cautioned that this right be exercised in just cause and
in peaceful, non-violent fashion. The trusteeship theory
advocated by him highlights the fact that wealth belongs to
society and not to the owners of an enterprise. Owners are ther
to serve the interest of society. If they fail to pay minimum
wages to workers, workers must appeal to their conscience. If
this does not produce result, they should resort to non-violent
non cooperation (Satyagraha).
Collective bargaining
Collective bargaining
Collective bargaining is a process in which the
representatives of labor organization n the representatives
of business organization meet n attempt to negotiate a
contract or agreement which specifies the nature of the
employee-employer union relationship.
It is a process by which the term and conditions of workers
are regulated by agreement between their bargaining agents
and employers.
Objectives of collective bargaining
To maintain cordial relations between the management and the
workers
To settle the disputes or conflicts
To protect the interests of the workers
To ensure the participation of trade unions in industry
To resolve the differences between workers and management
through voluntary negotiations and arrive at consensus
To avoid the need for government intervention as it is a
voluntary process
Scope
Any issue that could be bargained across the table
Any issue that has relevance to management an workers
Traditionally wages and working conditions have been the
primary focus
In recent times, the process of bargaining has extended to
almost any area that comes under the employer- employee
relations, covering a large territory
Types Of Bargaining
Conjunctive/Distributive Bargaining :- The parties try to maximize their
respective gains. They try to settle economic issues such as wages,
benefits bonus, through- zero-sum game (where my gain is your loss and
your gain is my loss); win lose. Union negotiate for maximum wages.
Co-operative Bargaining :- When companies are hit by recession, they
cannot offer the kind of wages and benefits demanded by workers. At the
same time they cannot survive without latters support. So both parties
realize the importance of surviving in such difficult situation and willing
to negotiate the terms of employment in a flexible way. A more open to
coming down from their high horses; win win.

Productivity bargaining :- In this workers wages and benefits are
linked to productivity. A standard productivity index is finalized
through negotiations initially.
Composite bargaining:- In this method, labour bargains for wages
as usual but goes a step further demanding equity in matter
relating to work norms, employment levels, manning standards,
they ensure the workload of workers does not increase, this help
to maintain the status quo as far as employment level is
concerned.
Types Of Bargaining
Collective Bargaining Process
Identification of the problem
Collection of Data
Selection of Negotiators
Climate of negotiation
Bargaining strategy and tactics
Formalizing the agreement
Employee Participation
Employee Participation
The word participation means sharing the decision-making with the
lower ranks of the organization in an appropriate manner. Participation
has a unique motivational power and a great psychological value.
In the words of Gosep, workers participation may be viewed as:
An instrument for increasing the efficiency of enterprises and establishing
harmonious industrial relations;
a devise for developing social education for promoting solidarity among
workers and for tapping human talent;
a humanitarian act, elevating the status of a worker in the society;
a ideological way of developing self management and promoting
industrial democracy.

Forms of Employee Participation
Informative Participation: This refers to sharing of various
information like position of firms, state of market, work methods,
balance sheet etc.
Consultative Participation: This involves a higher degree of sharing
of views on various issues concerning work, workplace, working
conditions. Here the joint council of workers and management
works as a advisory body only.
Associative Participation: Here the council is not purely advisory.
The management is under a moral obligation to accept and
implement the unanimous decisions of the council.
Administrative Participation: Here there is a greater
degree of sharing authority and responsibility of
managerial work, allowing workers a little more
autonomy in exercising administrative and supervisory
powers in respect of welfare, safety, rewards etc.
Decisive Participation: This is the highest form of
participation where decisions are taken jointly on
matters relating to production, safety, welfare etc.

Forms of Employee Participation
Employee Grievance
Employee Grievance
Any discontent or dissatisfaction, whether
expressed or not, whether valid or not, arising
out of anything connected with company which
an employee thinks, believes or even feels to be
unfair, unjust or inequitable.
Forms of Grievances
1. Factual : it arises when legitimate needs of employees
remain unfulfilled e.g. wage hike has been agreed but not
implemented citing various reasons
2. Imaginary : It arises not because of any valid reason but
because a wrong perception, wrong attitude or wrong
information
3. Disguised : It arises for a reason that are unknown to
himself. If he/she is under pressure from family, friends
relative, peer etc. etc.
Causes of Grievance
Economic : Wage, Overtime, Bonus and related issues
Work Environment : Defectives tool & equipments, poor quality
of material, poor physical conditions, lack of recognition
Supervision : Issues related to supervisors attitude such as
favoritism, regional feelings, notion of bias, nepotism etc.
Work Group : Suffer from feelings of neglect, receive
humiliation & ridicule.
Miscellaneous : issues related to violation in regards to safety,
transfer, disciplinary rules, leaves, medical benefits etc. etc.
Steps in Grievance procedure
Identify
Grievance
Define correctly
Collect Data
Analyze and
solve
Prompt
redressal
Implementation &
follow-up
Model Grievance Procedure Suggested by National
Commission on Labour
Procedure Time Frame


















Worker
Foreman
Supervisor
HOD
Grievance Committee
Manager
Appeal against with in a
week
48 Hrs
3 Days
7 Days
3 Days
Quality Circles
Quality Circles - Concept
Quality Circle is a small group of people who voluntarily
perform quality improvement activities at the work place.
Quality circles comprise the most widely publicized team
approach to problem solving. This technique was started by
Kaoru Ishikawa in Japan in the early 1960s. The American
industry began to implement this concept in the late 1970s
and 1980s.

1.Quality circles consist of small groups of people who
normally work at the same place and are doing similar
work.
2.These groups meet at regular intervals and discuss
problems encountered in quality improvement. Since such
people take up the same type of work so their problems are
similarly known to all of them.

CHARACTERSTICS OF QC
3.The quality circles identify the problems first and try to
find out the solutions themselves. The solutions are tried
and rectifications are made again, if necessary.
4.The efforts of quality circles are ultimately directed
towards quality improvement on a regular basis. This
exercise also helps in improving the performance of
participating persons.
5. Quality circles are voluntary associations of persons
having a common cause.
CHARACTERSTICS OF QC
Organization of QC
Quality circles meet on a regular basis to identify work
centre problems and develop solutions to these problems.
The idea here is that the quality circle should meet in a free
period. They normally meet at the lunch hour or after the
factory hours. The meetings aim to solve the problems
faced by the circles.

Structure of Quality Circle
Top
Management
Steering
Committee
Coordinator
Facilitator
Leader
Member
MEMBERS
Members are the basic element of the structure of Quality Circles.
To become members of QC :-
Employees of the same work area Voluntarily join or those
engaged in similar type of work .
Employees Contribute towards building of a cohesive group
culture through which they try to achieve the highest standards
of performance.

LEADERS
Leader is chosen by the members from amongst them .
He may be foreman / supervisor/ charge man or any other
member.
Leader is responsible for the effective performance of his
circle . He must be prepared to face challenge to his ideas.

FACILITATOR (Role of Management)
Facilitator is usually a manager of the shop/ department/
section .
He is responsible for guiding and directing the activities of
the quality circle in his area .
He publishes the concepts, enlist volunteer members,
providing training for members.
Acts as a catalyst, innovator, promoter and teacher and is
nominated by the management
Steering Committee (Role of Management)
It is the Apex body at the highest level of the unit / division which
oversees the functioning of quality circle in the unit/ division and
serves as an advisory body for quality circle
PURPOSE OF STEERING COMMITTEE :-
1. Identify overall quality circle objectives .
2.Encouraging quality circle activity by providing plan resources
to make circle activity possible.
3.Authorizing circle actions as well as establish policies and
guidelines .
4.Suggest areas for suitable quality circle attention.
Top Management
(Role of Management)
The success of the quality circles depends solely on the
attitude of the Top management and plays an important role
to ensure the success of implementation of quality circles in
the organization.

EXAMPLE :-
1. XEROX one of the most well known
firms in the world has benefitted from it.
Xerox reduced waste production by
65000 tonnes annually-with the help of
Quality Circles.
2.Hero Honda motors Sunrise Quality
Circle and Lucas TVS, Chennai Honey
bee Quality Circle saved Rs.4000 crore
p.a. With the help of quality circle.
Originated in Japan and later on move to many other
countries of the world including India. QC movement has
found in companies like BHEL. TELCO, Bajaj Autos, SBI,
HMT.

QCs in India
1. Quality circles do not restrict themselves to solving
problems and quality only, it also solve issues affecting
productivity, cost reduction, safety, etc.
2. These are not forums for grievance settlement or raising
other demands.
3. These are not the means for management to unload all
their problems.
4. Quality circles are not replacement for task force, product
committee, suggestion schemes, etc.
5. Quality circles are not panacea for all ills in the
organizations.

MISCONCEPTIONS ABOUT QCs
HR Audit
HR Audit
It is a systematic survey and analysis of all operative
functions of the HR Department with a summarized
statement of findings and recommendations for correction
of deficiencies
It refers to an examination and evaluation of policies,
procedures and practices to determine the effectiveness of
HR mgt.
Objectives
1. Quality circles do not restrict themselves to solving
problems and quality only, it also solve issues affecting
productivity, cost reduction, safety, etc.
2. These are not forums for grievance settlement or raising
other demands.
3. These are not the means for management to unload all their
problems.
4.Quality circles are not replacement for task force, product
committee, suggestion schemes, etc.
5. Quality circles are not panacea for all ills in the
organisations.

Essential Steps in HR auditing process:
1. Orientation : The key staff member of the organization are to
be made aware of the plans and programmes of audit and its
requirement.
2. Scanning : All the information available like personnel
records, manuals, appraisal forms etc. needs to be scrutinized
thoroughly.
3. Survey : It involves collection of information to pinpoint
issues, strengths, weakness, managerial philosophies and
needs of the organization.
4. Interviews: What question to be asked is to be
decided. This is based on the issues and information
collected from surveys. The audit efforts will be
fruitful if clarity is obtained as to key factors selected
for audit. Clarity can be obtained only if the accurate
information is collected. The questions can be
developed in the following areas : Information,
forecasting, Training and development, Performance
appraisal etc.
5. Synthesis: The information gathered from the above
steps is synthesized to find out the present situation,
priorities, and issues relevant.

Essential Steps in HR auditing process: