Chapter 6

Employee Relations

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Employee Relations
Employee Relations deals with:

 Strengthening relationships between employees by

managing the informal and formal channels of
communication

 Administering discipline and grievance handling

procedures

 Creating a Team that visibly demonstrates, on and off

the job, the Core Values, Vision and Mission of the
organization

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Employee
Communications
 The Employee Handbook
 Annual Report, CSR Report
 Newsletter, House Magazine
 Bulletin Boards
 Memos
 Intranet, E Mail
 Website
 Teleconferencing, multimedia
 Digital Material e.g. CDs
 Company Events e.g. Annual Conference, Family Day,
Long Service and other Awards Ceremonies

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Formal Communications
Meetings
• Provide opportunities for face-to-face
communication
• Facilitate dialogue and promote better personal
relationships
• Allow managers to coordinate activities with their
subordinates, and across divisions
• Task Force meetings aid in accomplishing a
specific goal
• Poorly managed meetings can be a waste of time
and lower a company’s productivity
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
 Guidelines for Productive
Meetings
 Hold a meeting when absolutely necessary
 Decide participants group size, cross functional
and hierarchical representation according to the
purpose of the meeting
 Distribute a carefully planned agenda with
meeting announcement
 Choose appropriate space and time
 Close meetings with action plans, and follow up
with a memo
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
 Retreats
 A retreat is an extended meeting in which the company takes
employees to a relaxing, off-work location, where employees mix
business with recreational activities

Retreats aid in:

 Determining the Vision, Mission and Mission of the company or for
other activities where a representative company slice is required
 Developing strategies, creative ideas for long-term planning
 Implementing changes in business practices
 Bringing cultural and organizational climate changes
 Developing teamwork and interpersonal skills of employees
 Fostering mutual appreciation among co-workers

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Informal Communications
 Exchange of information amongst employees
without a planned agenda, also called the
grapevine
 Informal communications can be a source of
creative ideas
 Passes along information that is usually not
available through more formal channels

Examples: amount of upcoming increments; who is in

line for promotion; who has received an outside job
offer; who has gotten a low performance evaluation
and is upset about it

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Managing Informal
Communications
 Information may be distorted by rumor,
gossip and misinterpretation, resulting
in poor employee morale and relations
 Informal communications should be
monitored by the HR department, and
when necessary, clarify them through
formal channels
 An effective way to monitor informal
communications is Management By
Walking Around (MBWA)
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
 Employee Feedback
Programs
 Employee Feedback Programs serve as an
upward communication channel between
employees and management

 These programs are designed to improve

management-employee relations by
1. Giving employees a voice in decision making,
strategies and policy formulation
2. Making sure that employees receive due process on
any complaints they lodge against managers,
company’s work conditions, compensation and
benefits.

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Employee Feedback
Programs
The HR department:
 Designs and maintains these programs
and surveys
 Protects employee confidentiality in
dealing with sensitive personal issues
 Ensures that subordinates are not subject
to retaliation from angry managers

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Employee Feedback
Programs
The most common employee feedback
programs are:
1. Employee Attitude Surveys
2. Appeals Procedures
3. Employee Assistance Programs

EAS, and APs resolve work-related

problems EAPS resolve personal
problems interfering with work
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
 Employee Attitude Surveys
 a formal anonymous survey designed to measure
employee likes/dislikes of various aspects of their jobs

Most EAS, ask employees for feedback about:

 The work they do
 Their supervisors
 Their work environment
 Their opportunities for advancement
 The quality of training they received
 The company’s treatment of women and minorities
 The fairness of the company’s compensation, benefits,
pay policy

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Employee Attitude Surveys

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Employee Attitude Surveys
To manage EAS, managers should:
 Tell employees what they plan to do with the
information they collect
 Inform employees about the results of the survey
 Use survey data ethically to monitor the state of
employee relations throughout the company
 Ensure that the data is not used to fire someone
 Protect employee confidentiality
 Maintain the integrity of the data by contracting a
third party consultant firm
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
 Appeals Procedure
 Appeals procedures allow employees to voice
their reaction to management practices and to
challenge management decisions
 Effective appeals procedures give individual
employees some control over the decisions that
affect them and help to identify managers who
are ineffective or unfair.
Organizations without effective appeals procedures:
 Increase their risk of litigation
 Incur costly legal fees
 Back-pay penalties to employees who use courts
to obtain justice
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
 Appeals Procedure
Common management actions subject
to appeals are
 The allocation of overtime work
 Warnings for safety rule violations
 The size of merit pay increase
 The specification of job duties
 The reimbursement for medical expenses filed
by employees or other specific benefits
 Performance Evaluations

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Types of Appeals
Procedures
Open-door Speak-up Grievance Panel Union Grievance
• Informal • Informal • Formal • Formal
• Direct access • Prescribes • Used in non-union • Used by employees
to managers specific steps firms working under a union
• Managers for employees • Composed of contract
conduct fair to take a work complaining • Uses arbitrator, a
investigation, problem to employee’s peers and neutral third party, to
and provide management managers other than lead to a final and
answer within a attention the employee’s direct binding decision
time period manager
• Makes • The panel conducts
employees feel an investigation into
secure and the grievance brought
committed before it
• Makes • Typically the last
managers act step in the appeals
less arbitrarily process
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
General Steps
followed in a
Union Grievance
Procedure

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Employee Assistance
Programs
 Employee Assistance Programs help employees
cope with personal problems that are interfering
with their job performance

 When an employee’s personal problem

interferes with job performance, the individual is
considered a troubled employee

 A work-life balance is essential for a satisfied

employee

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Symptoms of a Troubled
Employee
1. Excessive absenteeism patterns: Mondays, Fridays, days before and after
holidays
2. Unexcused absences
3. Frequent absences
4. Tardiness and early departures
5. Altercations with co-workers
6. Causing injuries to other employees through negligence
7. Poor judgment and bad decisions
8. Unusual on-the-job accidents
9. Increased spoilage and breaking of equipment through negligence
10. Involvements with the law – for example, a DWI (driving while intoxicated)
conviction
11. Deteriorating personal appearance
12. Obsessive behavior such as inappropriate discussion of personal problems
with customers

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Employee Assistance
Programs

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Employee Recognition
Programs
 Employee Recognition Programs reward
employees for their ideas, performance and
contributions
 Such programs are important because
employees are likely to share their ideas for
work improvements when managers give
them credit for their contributions
 ERPs enhance employee relations by
communicating that the organization cares
about its employees’ ideas and is willing to
reward them for their efforts.
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
 Employee Recognition
Programs
Common ERPs are:
1. Suggestion Systems
2. Recognition Awards
3. Performance Awards

ERP’s should be:

• Based on clear, simple, easily understood, pre-
informed criteria
• Transparently implemented
• Publicly announced
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
 Employee Recognition
1. Company paid holidays
2. Company paid learning visits
3. Dinner, picnic or outing
4. Co insignia items: mugs, T shirts, caps, stationary,
key chains, diaries, etc
5. Plaque, Certificate, etc
6. Special Awards: gold medal, watch, pen,
professional tools, household items, etc
7. Children or family support
8. Higher perks
9. Club or professional memberships
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
 Rights of Employers and
Employees
HR Department should
 Comply with all relevant laws - Industrial Relations
Ordinance, Factory Act, Companies Act, WWF, WPPF,
Pension, Gratuity, Provident Fund, EOBI, SESSI, etc.
 Develop and enforce policies that inform
employees of their rights and responsibilities
e.g. Employees Handbook, Manual of Company Policies,
Intranet information system, Employee Assistance Center
 Make managers aware of the relevant laws,
employees’ rights and managers’ obligations
to employees
 Act as an Employee Advocate, especially
when a supervisor disregards or
misunderstands policy and disciplinary rules
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
 Categories of Employee
Rights
Statutory Rights Contractual Rights Other Rights
• Protection from discrimination • Employment contract • Ethical treatment

• Safe working conditions • Union contract • Privacy (limited)

• Right to form unions • Implied contracts/employment • Free speech (limited)

policies

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Disciplinary Actions
 Discipline refers to an action taken against an
employee who has violated an organizational
rule or whose performance has deteriorated
to the point where corrective action is needed
 Generally, disciplinary actions are taken
against employees for two types of conducts:
1. Poor job performance or conduct that negatively
affects an employee’s job performance.
Example: Absenteeism, insubordination, negligence

2. Actions that indicate poor citizenship

Example: fighting on the job, or theft of company property

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Categories of Employee
Misconduct
Minor Violations Serious Violations

• Absenteeism • Drug use at work

• Dress code violation • Theft

• Smoking rule violation • Dishonesty

• Incompetence • Physical assault upon a supervisor

• Safety rule violation • Sabotage of company operations

• Sleeping on the job

• Horseplay

• Tardiness

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Disciplinary Actions

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 The Discipline Process
Step I Step II Step III

Establish Communicate Apply corrective

performance performance actions or
requirements requirements discipline
and work and work when necessary
rules rules

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 4 steps in a Progressive Discipline
Procedure

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Steps for Effective
Disciplinary Sessions
 Determine whether an inquiry or discipline is actually
required – isolated incident or a pattern, consult HR
experts, get feedback from several sources
 Comply fully with Inquiry/Disciplinary process, ensuring the
rights of the employee
 Have clear goals and structure your discussion, developing
concrete steps for employee improvement or disciplinary
recommendations
 Ensure two-way, impartial, honest communication
 Establish a follow up plan for employee
discipline/improvement with a time frame
 For employee improvement, end on a positive note – on
employee’s strengths, convincing him of his ability to
succeed
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
 Statutory Rights and Due
Diligence for Discipline
 Notification – employees have to be forewarned of the
disciplinary consequences of misconduct

 Rule Violation should exist

 Investigation before the Discipline
 Fair Investigation
 Proof of Guilt
 Absence of Discrimination
 Reasonable Penalty
 Right to Appeal
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
 Considerations in Disciplining Employees

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 HUMAN RESOURCE MANAGEMENT
• Employer/Organizational Objectives
• Organizational Structure
• Job Identification, Analysis & Design
• Job Specification (Before Joining) •

• Job Description (After Joining)

• Tasks, Activities, Responsibilities, Accountabilities
• Power (Financial/Administrative) •

• Reporting Structure
• Manpower Planning, Recruitment, Induction
• Training & Development

Employee Objectives JOB Employer Objectives

Work (Scope & Depth) Growth in
Growth in Services
• Goods & Services
• Family & Self
• Customer Satisfaction
• Profession Employee – Employer
EMPLOYEE EMPLOYER • Revenue Generation
• Career Relationship
• Profits
• Security
• Return on Equity (ROE)
• Social Status Performance Compensation &
• Expansion of Business
Management Rewards
• Corporate Reputation

• Performance Evaluation • Salary

• Increments • Benefits
• Bonus • Facilities and Perks
• Incentives • Allowances
• Career Development • Professional, Career, Societal
• Ultimate Potential Recognition
• Internal + External (Mkt) Equity

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Preventing the need for
Discipline with professional
HRM practices
1 Recruitment and selection
 Matching career aspirations and career potential
 Checking references, background info
 Multiple interviews, transparent interviewing and selection process

2 Training and development

 Effective Orientation Program
 Training and retraining programs to reduce skill gaps and enhance
competencies
 Coaching and grooming
 Career Planning

3 Human Resource Planning

 Match job designing with the best talents of each employee
 Job descriptions, work plans and performance standards
developed and communicated effectively to employees
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
 Preventing the need for
Discipline with professional
HRM practices
4 Performance Appraisal
 Reasonable performance appraisal standards and process that are
understood by employees
 Frequent feedback by supervisors to employees
 Employees development is part of the supervisors appraisal
 Transparent, shared and documented appraisal and development
plans

5 Compensation
 Pay policies should be perceived to be fair
 Appeal mechanism that allows employees the right to challenge
pay and benefits through a legitimate channel

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain
 Address to Civil Servants and Professionals
Peshawar 1948

“You should not be influenced by any political pressure, by any political

party or individual politician. If you want to raise the prestige and
greatness of Pakistan you must not fall victim to any pressure, but do
your duty fearlessly and honestly.

Governments are formed, governments are defeated, prime ministers come and go, ministers
come and go. Therefore there is a very great responsibility placed on your shoulders.

You should have no hands in supporting this political party or that political party, this political
leader or that political leader – that is not your business. Whichever government is formed
according to the constitution and whoever happens to be the prime minister coming into power
in the ordinary constitutional course, your duty is not only to serve that government loyally,
faithfully, but at the same time fearlessly, maintaining your high reputation, your prestige, your
honor and your integrity. With the determination you will make a great contribution to the
building of Pakistan of our conception and our dream – a glorious state and one of the greatest
nations
HUMAN in the
RESOURCE world.”
MANAGEMENT
Quaid-e-Azam Muhammad Ali Jinnah
Shah M Saad Husain
 Thank You

HUMAN RESOURCE MANAGEMENT

Shah M Saad Husain