Basics of Industrial Relations and HR Analytics

Module 5

Dr. Ujjal Mukherjee

 Chapter scope
• Module 5 – Basics of Industrial Relations and HR
Analytics [4 hours]
• Basics of Industrial Relations – meaning and
importance, trade unions, workers participation in
management, collective bargaining* HR Analytics –
Introduction, Evolution, Steps in HRA, Applications
of HRA, How analytics helps in negotiation and
bargaining.
 Chapter scope
• Learning Outcomes: Ability to understand the
overview of industrial relations scenario in Indian
context and importance of IR and HR Analytics
components.
 Books for reference
• Sanghi, S(2017). Human Resource Management, Vikas Publishing
• Dessler, G. and Varkhey, B. (2016). Human Resource Management,
India: Pearson India,
 Basics of Industrial
Relations – meaning and
importance,
 Basics of Industrial Relations – meaning
and importance,

Definitions of Industrial Relations:

• “industrial relations” is used to denote the collective relationships
between management and the workers.
• labour-management relations and employer-employee relations are
synonymously used.

Bethel and associates defined “Industrial relations is that part of

management which is concerned with the manpower of the enterprise”.

J. Henry Richardson “industrial relations is an art, the art of living

together for purposes of production”.
 Basics of Industrial Relations – meaning
Partners of andIndustrial
importance, Relations

Government

Employers Trade Unions

 Basics of Industrial Relations – meaning
Three Partners andofimportance,
Industrial Relations

Trade Union:
Trade unions try to protect interest of workers, they insist upon the
development of cultural and educational qualities of there members.

Employers & their organizations:

They try to protect the interest of employers, to create healthy
industrial atmosphere, so that the objectives of the organization may be
achieved. They try to get full co-operation of workers for achieving this
objective.

Government:
The government plays an important role in establishing better
industrial relations. Government passes various laws to protect the
interest of both employers and employees.
 Basics of Industrial
Importance Relations – meaning
of Industrial
and importance,
Relations
Features of Industrial Relations are explained below:
1. The concept of industrial relations is complex and multi-
dimensional. It is also a dynamic and developing concept.
2. In the olden days, industrial relations were cordial and peaceful.
However, at present, they are not so due to increase in the number
of industrial workers, growth of trade unions, growing demands of
workers etc.
3. Industrial relations do not function in a vacuum. The attitude and
approaches of employers, employees and trade unions are directly
related ‘to, industrial relations.
 Basics of Industrial
Importance Relations – meaning
of Industrial
and importance,
Relations
4. Industrial relations lead to “industrial peace” or “industrial unrest”.
Both terms are used in relation to industrial relations. Cordial industrial ,
relations bring industrial peace i.e. a period when industrial disputes,
strikes, lock-outs, etc. are absent and production activity is being
conducted in a regular and continuous manner.

5. Cordial industrial relations are always beneficial to all concerned

parties whereas absences of such relations are harmful to all parties and
even to the national economy.
trade unions
 THE TRADE UNION ACT 1926

DEFINITION:
Section 2 (h) of the Trade Union Act 1926 defines the term „Trade
Union‟ as-
• “ any combination, whether temporary or permanent,
• formed primarily for the purpose of regulating the relation
o between workmen and employers,
o between workmen and workmen, or
o between employers and employers or
• for imposing restrictive conditions on the conduct of
o any trade or business, and
• includes any federation of two or more Trade Unions”.
 FUNCTIONS & ROLE OF
TRADE UNIONS.

• To improve working and living conditions.

• To secure for workers fair wages.
• To enlarge opportunities for promotion and training.  To promote
individual and collective welfare.
• To provide for educational, cultural and recreational facilities.
• To safeguard security of tenure and improve conditions of service.
• To promote identity of interests of the workers with their industry .
 Central Trade Union
Organizations in India
• All India Trade Union Congress (AITUC)
• Centre of Indian Trade Unions (CITU)
• Hind Mazdoor Kisan Panchayat (HMKP)
• Hind Mazdoor Sabha (HMS)
• Indian Federation of Free Trade Unions (IFFTU)
• Indian National Trade Union Congress (INTUC)
• National Front of Indian Trade Unions (NFITU)
• National Labor Organization (NLO)
• Trade Unions Co-ordination Centre (TUCC)
• National Mazdoor Union (NMU)
workers participation in
management
 workers
Worker’s participation inparticipation
management
in management

Worker’s participation is a system where workers and management

share important information with each other and participate in decision
taking.

According to Keith Davis, “Workers’ participation refers to –

• the mental and emotional involve­ment of a person
• in a group situation
• which encourages him to contribute to group goals and share in
responsibility of achieving them”.
 workers participation
Features inofmanagement
WPM

• Participation means mental and emotional involvement rather than

mere physical presence.

• Workers participate in management not as individuals but collectively

as a group through their representatives.

• Workers’ participation in management may be formal or informal. In

both the cases it is a system of communication and consultation
whereby employees express their opinions and contribute to
managerial decisions.
 Levels of Management
workers participation
Participationinor WPM
management

Information participation:
• ensures that employees are able to receive information and
• express their views pertaining to the matters.

Consultative importance:
• workers are consulted on the matters of employee welfare such as
work, safety and health.
• However, final decision always rests with the top-level management.

Associative participation:
• an extension of consultative participation as management here is
under the moral obligation to accept and implement the unanimous
decisions of the employees.
• managers and workers jointly take decisions.
 Levels of Management
workers participation
Participationinor WPM
management

Administrative participation:
• ensures greater share of workers’ participation in discharge of
managerial functions.
• decisions already taken by the management come to employees,
preferably with alternatives for administration and employees have
to select the best from those for implementation.

Decisive participation:
• Highest level of participation where decisions are jointly taken on the
matters relating to production, welfare etc.
 workers participation
Achieving WPM
in management
 workers participation
in management

FORMS OF WPM
In India workers participation has been introduced in these forms :

1. The Workers Committees

2. Joint Management Councils
3. Shop Councils
4. Joint Councils
 workers participation
in management

Workers Committees
• first labor management association started in 1947
• with the passing Industrial Disputes Act.
• The Act provides that in the case of any industrial establishment in
which
o 100 or more workers are employed on any day in the preceding
twelve months.

• The employees to constitute in the prescribed manner a Works

Committee in the establishment.
• The committee was expected to discuss matters of common interest
and to maintain cordial relations between workers and employees.
• The response to works committees was encouraging in the beginning.
But , in spite of their large number the experience of these committees
was not very fruitful.
 workers participation
in management

Joint Management Councils

• Joint Management council was a voluntary body.

• Its introduction was left solely to the discretion of employers and
employees.
• These councils will consist of equal number of representation of
workers and management will not exceed twelve.
• The councils functions were divided as:-
o Information sharing.
o Consultative.
o Administrative.
• The council has the right to receive information , discuss and give
suggestions on general economic situation, market production,
general running of the unit,etc.
 workers participation
in management

Shop Councils
• A new scheme for workers participation in management was adopted
in October 1975.
• The scheme was voluntary in nature.
• It covered all manufacturing and mining industries employing 500 or
more persons.
• The scheme provided for setting up of shops councils at the plant
level.
Shop Councils
• There will be a shop for each department or one council for more
departments considering the number of workers employed there.
• The representatives of employees will be nominated by the
management and must be from the unit concerned.
• The number of members in the council may be decided by
management in Consultation with recognised unions.
 workers participation
in management

Joint Councils
• The development of skill of workmen and adequate
facilities for training.
• Preparation of schedules of working hours and of holidays.
• Awarding of rewards for valuables and creative suggestions
received from workers.
• Optimum use of raw materials and quality of finished
products.
collective bargaining
 collective bargaining

Meaning of Collective Bargaining

Collective bargaining is that –

• arrangement
• whereby the wages components of remuneration and conditions of
employment of workman are settled
• through a bargain between
o the employer and
o the workman collectively
• whether represented through their union or by some of them on
behalf of all of them.
 Need ofcollective
Collective Bargaining
bargaining

• It helps in solving the industrial disputes.

• Secure a prompt and fair redressal of grievances.
• Establish uniform conditions of employment with a view to avoid
industrial disputes and maintaining stable peace in the industry.
• Helps redress worker grievances promptly and fairly.
• Avoid interruptions in work which follow strikes, go slow tactics and
similar coercive activities.
• Lay down fair rates of wages and norms of working conditions.
• Achieve an efficient operation of the plant and
• Promote the stability and prosperity of the industry.
 collective
Collective bargaining
Bargaining Process

In many companies, agreements have a fixed time scale and a collective

bargaining process will review the procedural agreement when
negotiations take place on pay and conditions of employment.
 collective bargaining
Levels of collective bargaining
HR Analytics – Introduction
 HR Analytics – Introduction

Human Resource analytics (HR Analytics) is defined as-

• the area in the field of analytics that

• deals with people analysis and
• applying analytical process to
• the human capital within the organization
• to improve employee performance and
• improving employee retention.
Evolution of Analytics
 Evolution of Analytics

• The use of Analytics by business can be found as far back as the

19th century, when Frederick Winslow Taylor initiated time
management exercises.
• Another example is when Henry Ford measured the speed of
assembly lines.
• In the late 1960s, Analytics began receiving more attention as
computers became decision-making support systems.
• With the development of Big data, Data Warehouses, the Cloud, and
a variety of software and hardware, Data Analytics has evolved,
significantly.
• Data Analytics involves the research, discovery, and interpretation of
patterns within data.

• Modern forms of Data Analytics have expanded to include:

 Evolution of Analytics

Statistics and Computers

• It has been surmised statistics were used as far back as Ancient Egypt
for building pyramids.
• The development of computers and the evolution of computing
technology has dramatically enhanced the process of Data Analytics.
• In 1880, prior to computers, it took over seven years for the U.S.
Census Bureau to process the collected information and complete a
final report.
• In response, inventor Herman Hollerith produced the “tabulating
machine,” which was used in the 1890 census.
• The tabulating machine could systematically process data recorder on
punch cards. With this device, the 1890 census was finished in 18
months.
 Evolution of Analytics

Data Warehouses
• In the late 1980s, the amount of data being collected continued to
grow significantly, in part due to the lower costs of hard disk drives.
• During this time, the architecture of data warehouses was developed
to help in transforming data coming from operational systems into
decision-making support systems.
• Data Warehouses are normally part of the Cloud, or part of an
organization’s mainframe server.
 Evolution of Analytics

Business Intelligence
• The term Business Intelligence (BI) was first used in 1865, and was
later adapted by Howard Dresner at Gartner in 1989, to describe
making better business decisions through searching, gathering, and
analyzing the accumulated data saved by an organization.
• Using the term “Business Intelligence” as a description of decision-
making based on data technologies was both novel and far-sighted.
• Large companies first embraced BI in the form of analyzing customer
data systematically, as a necessary step in making business decisions.
 Evolution of Analytics

Data Mining
• Data Mining began in the 1990s and is the process of discovering
patterns within large data sets.
• The new technologies allow organizations to store more data, while
still analyzing it quickly and efficiently.
• As a result, businesses started predicting the potential needs of
customers, based on an analysis of their historical purchasing
patterns.
 Evolution of Analytics

Big Data
• In 2005, Big Data was given that name by Roger Magoulas.
• describing a large amount of data, which seemed almost impossible
to cope with using the Business Intelligence tools available at the
time.
• same year, Hadoop, which could process Big Data, was developed.
• Hadoop’s foundation was based on another open-source software
framework called Nutch, which was then merged with Google’s
MapReduce.
• Apache Hadoop is an open-source software framework, which can
process both structured and unstructured data, streaming in from
almost all digital sources.
• This flexibility allows Hadoop (and its sibling open-source
frameworks) to process Big Data. During the late 2000s, several open
source projects, such as Apache spark and Apache Cassandra came
 Evolution of Analytics

Analytics in the Cloud

• Programs (or applications) could be accessed or downloaded by any
person with internet access.
• An organization manager could purchase software in a cost-effective,
on-demand method without leaving the office.
• As businesses and organizations gained a better understanding of the
Cloud’s services and usefulness, it gained in popularity.
• The Cloud has evolved significantly since 1999, with customers
“renting the services,” rather than acquiring hardware and software
for the same purpose.
• Vendors are now responsible for all the trouble-shooting, backups,
administration, capacity planning, and maintenance.
• And, for several business projects, the Cloud is simply easier and
more efficient to use. The Cloud now has significantly large amounts
of storage, availability to multiple users simultaneously,
 Evolution of Analytics

Predictive Analytics
• Predictive Analytics is used to make forecasts about trends and
behavior patterns. 
• Predictive Analytics uses several techniques taken from statistics,
Data Modeling, Data Mining, Artificial intelligence, and Machine
Learning to analyze data in making predictions.
• Predictive models can analyze both current and historical data to
understand customers, purchasing patterns, procedural problems,
and in predicting potential dangers and opportunities for an
organization.
Steps in HRA
 Steps in HRA

Step 1: Define Your Questions

In your organizational or business data analysis, you must begin with the
right question(s). Questions should be measurable, clear and concise.
Design your questions to either qualify or disqualify potential solutions
to your specific problem or opportunity.

HR METRICS AND ANALYTICS -

For example, start with a clearly defined problem: A government
contractor is experiencing rising costs and is no longer able to submit
competitive contract proposals. One of many questions to solve this
business problem might include: Can the company reduce its staff
without compromising quality?
 Steps in HRA

Step 2: Set Clear Measurement Priorities

This step breaks down into two sub-steps:
A) Decide what to measure, and
B) Decide how to measure it.
A) Decide what to measure
Using the government contractor example, consider what kind of data
you‘d need to answer your key question. In this case, you‘d need to
know the number and cost of current staff and the percentage of time
they spend on necessary business functions. In answering this question,
you likely need to answer many sub-questions (e.g., are staff currently
under-utilized? If so, what process improvements would help?). Finally,
in your decision on what to measure, be sure to include any reasonable
objections any stakeholders might have (e.g., if staff are reduced, how
would the company respond to surges in demand?).
 Steps in HRA

B) Decide how to measure it

Thinking about how you measure your data is just as important,
especially before the data collection phase, because your measuring
process either backs up or discredits your analysis later on. Key
questions to ask for this step include:
 What is your time frame? (e.g., annual versus quarterly costs)
 What is your unit of measure? (e.g., usd versus euro)
 What factors should be included? (e.g., just annual salary versus
annual salary plus cost of staff benefits)
 Steps in HRA

Step 3: Collect data

With your question clearly defined and your measurement priorities set,
now it‘s time to collect your data. As you collect and organize your data,
remember to keep these important points in mind:
 Before you collect new data, determine what information could be
collected from existing databases or sources on hand. Collect this data
first.
 Determine a file storing and naming system ahead of time to help all
tasked team members collaborate. This process saves time and prevents
team members from collecting the same information twice.
 If you need to gather data via observation or interviews, then develop
an interview template ahead of time to ensure consistency and save
time. Keep your collected data organized in a log with collection dates
and add any source notes as you go (including any data normalization
performed). This practice validates your conclusions down the road.
 Steps in HRA

Step 4: Analyze data

After you‘ve collected the right data to answer your question from step
1, it‘s time for deeper data analysis. Begin by manipulating your data in
a number of different ways, such as plotting it out and finding
correlations or by creating a pivot table in excel. A pivot table lets you
sort and filter data by different variables and lets you calculate the
mean, maximum, minimum and standard deviation of your data – just
be sure to avoid these five pitfalls of statistical data analysis.
As you manipulate data, you may find you have the exact data you need,
but more likely, you might need to revise your original question or
collect more data. Either way, this initial analysis of trends, correlations,
variations and outliers helps you focus your data analysis on better
answering your question and any objections others might have.
 Steps in HRA

Step 5: Interpret results

After analyzing your data and possibly conducting further research, it‘s
finally time to interpret your results. As you interpret your analysis, keep
in mind that you cannot ever prove a hypothesis true: rather, you can
only fail to reject the hypothesis. Meaning that no matter how much
data you collect, chance could always interfere with your results.
As you interpret the results of your data, ask yourself these key
questions:
 Does the data answer your original question? How?
 Does the data help you defend against any objections? How?
 Are there any limitation on your conclusions, any angles you haven‘t
considered?
 Steps in HRA

If your interpretation of the data holds up under all of these questions

and considerations, then you likely have come to a productive
conclusion. The only remaining step is to use the results of your data
analysis process to decide your best course of action.
By following these five steps in your data analysis process, you make
better decisions for your business or government agency because your
choices are backed by data that has been robustly collected and
analyzed. With practice, your data analysis gets faster and more
accurate – meaning you make better, more informed decisions to run
your organization most effectively.
Applications of HRA
 Applications of HRA

1) Talent Acquisition. ...

2) Training and evaluation. ...
3) Employee performance. ...
4) Financial compensation. ...
5) Retention. ...
6) Marketing. ...
7) Planning. ...
8) Health and injuries
Types of HRA
 Types of HRA

Descriptive analytics is the interpretation of historical data to better

understand changes that have occurred in a business. Descriptive
analytics describes the use of a range of historic data to draw
comparisons.

Diagnostic analytics is a form of advanced analytics that examines data

or content to answer the question, “Why did it happen?” It is
characterized by techniques such as drill-down, data discovery, data
mining and correlations.

Predictive analytics is a category of data analytics aimed at making

predictions about future outcomes based on
historical data and analytics techniques such as statistical modeling and
machine learning. The science of predictive analytics can generate
future insights with a significant degree of precision.
 Types of HRA

Prescriptive Analytics is the area of data analytics that focuses on

finding the best course of action in a scenario given the available data.
It's related to both descriptive analytics and predictive analytics but
emphasizes actionable insights instead of data monitoring.

Cognitive analytics is a field of analytics that tries to mimic the human

brain by draw inferences from existing data and patterns, draws
conclusions based on existing knowledge bases and then inserts this
back into the knowledge base for future inferences - a self learning
feedback loop.
Types of HRA
Notes
 Basics of Industrial
Relations – meaning and
importance,
 Basics of Industrial Relations – meaning
and importance,

Definitions of Industrial Relations:

Broadly, the term “industrial relations” is used to denote the
collective relationships between management and the workers. The two
terms, labour-management relations and employer-employee relations
are synonymously used.

Bethel and associates defined “Industrial relations is that part of

management which is concerned with the manpower of the enterprise”.

J. Henry Richardson “industrial relations is an art, the art of living

together for purposes of production”.
 Basics of Industrial Relations – meaning
Partners of andIndustrial
importance, Relations

Government

Employers Trade Unions

 Basics of Industrial Relations – meaning
Three Partners andofimportance,
Industrial Relations

Trade Union:
Trade unions try to protect interest of workers, they insist upon the
development of cultural and educational qualities of there members.

Employers & their organizations:

They try to protect the interest of employers, to create healthy
industrial atmosphere, so that the objectives of the organization may be
achieved. They try to get full co-operation of workers for achieving this
objective.

Government:
The government plays an important role in establishing better
industrial relations. Government passes various laws to protect the
interest of both employers and employees.
 Basics of Industrial
Importance Relations – meaning
of Industrial
and importance,
Relations
Industrial relations are the relations between two parties connected
with industrial / manufacturing activity, namely employer and
employees. Such relations are the outcome of the employment
relationship in Industry. Features of Industrial Relations are explained
below:
1. The concept of industrial relations is complex and multi-
dimensional. It is also a dynamic and developing concept.
2. In the olden days, industrial relations were cordial and peaceful.
However, at present, they are not so due to increase in the number
of industrial workers, growth of trade unions, growing demands of
workers etc.
3. Industrial relations do not function in a vacuum. The attitude and
approaches of employers, employees and trade unions are directly
related ‘to, industrial relations.
 Basics of Industrial
Importance Relations – meaning
of Industrial
and importance,
Relations
4. Industrial relations lead to “industrial peace” or “industrial unrest”.
Both terms are used in relation to industrial relations. Cordial industrial ,
relations bring industrial peace i.e. a period when industrial disputes,
strikes, lock-outs, etc. are absent and production activity is being
conducted in a regular and continuous manner.

5. Cordial industrial relations are always beneficial to all concerned

parties whereas absences of such relations are harmful to all parties and
even to the national economy.
trade unions
 THE TRADE UNION ACT 1926

Meaning:
The Trade Union Act was passed in 1926 under the title of the Indian Trade
Union Act and was brought into effect from 1 st June 1927 by a notification in
the Official Gazette by the Central Government. The Act was amended in
1947, 1960 and 1962, Subsequently the word „Indian‟ was deleted from the
amended Act of 1964, which came into force from 1 st April 1965. A
comprehensive trade unions (Amendment) Act was passed in 1982.

DEFINITION:
Section 2 (h) of the Trade Union Act 1926 defines the term „Trade Union‟ as “
any combination, whether temporary or permanent, formed primarily for the
purpose of regulating the relation between workmen and employers, between
workmen and workmen, or between employers and employers or for
imposing restrictive conditions on the conduct of any trade or business, and
includes any federation of two or more Trade Unions”.
 FUNCTIONS & ROLE OF
TRADE UNIONS.

• To improve working and living conditions.

• To secure for workers fair wages.
• To enlarge opportunities for promotion and training.  To promote
individual and collective welfare.
• To provide for educational, cultural and recreational facilities.
• To safeguard security of tenure and improve conditions of service.
• To promote identity of interests of the workers with their industry .
 Central Trade Union
Organizations in India
• All India Trade Union Congress (AITUC)
• Centre of Indian Trade Unions (CITU)
• Hind Mazdoor Kisan Panchayat (HMKP)
• Hind Mazdoor Sabha (HMS)
• Indian Federation of Free Trade Unions (IFFTU)
• Indian National Trade Union Congress (INTUC)
• National Front of Indian Trade Unions (NFITU)
• National Labor Organization (NLO)
• Trade Unions Co-ordination Centre (TUCC)
• National Mazdoor Union (NMU)
workers participation in
management
 workers
Worker’s participation inparticipation
management
in management

Worker’s participation is a system where workers and management share

important information with each other and participate in decision taking.

According to Keith Davis, “Workers’ participation refers to the mental and

emotional involve­ment of a person in a group situation which encourages
him to contribute to group goals and share in responsibility of achieving
them”.

In the words of Mehtras “Applied to industry, the concept of participation

means sharing the decision-making power by the rank and file of an
industrial organization through their representa­tives, at all the appropriate
levels of management in the entire range of managerial action”.
 workers participation
Features inofmanagement
WPM

• Participation means mental and emotional involvement rather

than mere physical presence.

• Workers participate in management not as individuals but

collectively as a group through their representatives.

• Workers’ participation in management may be formal or

informal. In both the cases it is a system of communication and
consultation whereby employees express their opinions and
contribute to managerial decisions.
 Levels of Management
workers participation
Participationinor WPM
management

Information participation: It ensures that employees are able to receive information and
express their views pertaining to the matter of general economic importance.

Consultative importance: Here workers are consulted on the matters of employee welfare
such as work, safety and health. However, final decision always rests with the top-level
management, as employees’ views are only advisory in nature.

Associative participation: It is an extension of consultative participation as management

here is under the moral obligation to accept and implement the unanimous decisions of
the employees. Under this method the managers and workers jointly take decisions.

Administrative participation: It ensures greater share of workers’ participation in

discharge of managerial functions. Here, decisions already taken by the management
come to employees, preferably with alternatives for administration and employees have to
select the best from those for implementation.

Decisive participation: Highest level of participation where decisions are jointly taken on
the matters relating to production, welfare etc.
 workers participation
in management

FORMS OF WPM
In India workers participation has been introduced in three forms :

1. The Workers Committees

2. Joint Management Councils
3. Shop Councils
4. Joint Councils
 workers participation
in management

Works Committees
The first labour management association started in 1947 with the passing Industrial
Disputes Act.

The Act provides that in the case of any industrial establishment in which 100 or more
workers are employed on any day in the preceding twelve months, the appropriate
government may be general or social order require
The employees to constitute in the prescribed manner a Works Committee in the
establishment.

The committee was expected to discuss matters of common interest and to maintain
cordial relations between workers and employees.

The response to works committees was encouraging in the beginning.

But , in spite of their large number the experience of these committees was not very
fruitful.
 workers participation
in management

Joint Management Councils

Joint Management council was a voluntary body.
Its introduction was left solely to the discretion of employers
and employees.
These councils will consist of equal number of representation
of workers and management will not exceed twelve.
The councils functions were divided as:-
Information sharing.
Consultative.
Administrative.
The council has the right to receive information , discuss and
give suggestions on general economic situation, market
production, general running of the unit,etc.
 workers participation
in management

Shop Councils
A new scheme for workers participation in management was adopted in
October 1975.
The scheme was voluntary in nature.
It covered all manufacturing and mining industries employing 500 or more
persons.
The scheme provided for setting up of shops councils at the plant level.

Shop Councils
There will be a shop for each department or one council for more departments
considering the number of workers employed there.
The representatives of employees will be nominated by the management and
must be from the unit concerned.
The number of members in the council may be decided by management in
Consultation with recognised unions.
 workers participation
in management

Joint Councils
The development of skill of workmen and adequate
facilities for training.
Preparation of schedules of working hours and of
holidays.
Awarding of rewards for valuables and creative
suggestions received from workers.
Optimum use of raw materials and quality of finished
products.
collective bargaining
 collective bargaining

Meaning of Collective Bargaining

Collective bargaining is that arrangement whereby the wages components of
remuneration and conditions of employment of workman are settled
through a bargain between the employer and the workman collectively
whether represented through their union or by some of them on behalf of all
of them.

Definitions
Collective bargaining is a mode of fixing the terms of employment by means
of bargaining between an organized body of employees and an employer or
an association of employers usually acting through organized agents.
R.F.Hoxie

The resolution of industrial problems between the representatives of

employers and the freely designated representatives of employees acting
collectively with a minimum of government dictation.
Cox
 Need ofcollective
Collective Bargaining
bargaining

• It helps in solving the industrial disputes.

• Secure a prompt and fair redressal of grievances.
• Establish uniform conditions of employment with a view to avoid
industrial disputes and maintaining stable peace in the industry.
• Helps redress worker grievances promptly and fairly.
• Avoid interruptions in work which follow strikes, go slow tactics and
similar coercive activities.
• Lay down fair rates of wages and norms of working conditions.
• Achieve an efficient operation of the plant and
• Promote the stability and prosperity of the industry.
 collective
Collective bargaining
Bargaining Process

In many companies, agreements have a fixed time scale and a collective bargaining
process will review the procedural agreement when negotiations take place on pay
and conditions of employment.
HR Analytics – Introduction
 HR Analytics – Introduction

Human Resource analytics (HR Analytics) is defined as the area in the

field of analytics that deals with people analysis and
applying analytical process to the human capital within the organization
to improve employee performance and improving employee retention.
Evolution of Analytics
 Evolution of Analytics

The use of Analytics by business can be found as far back as the

19th century, when Frederick Winslow Taylor initiated time management
exercises. Another example is when Henry Ford measured the speed of
assembly lines. In the late 1960s, Analytics began receiving more
attention as computers became decision-making support systems. With
the development of Big Data, Data Warehouses, the Cloud, and a variety
of software and hardware, Data Analytics has evolved, significantly. Data
Analytics involves the research, discovery, and interpretation of patterns
within data. Modern forms of Data Analytics have expanded to include:
 Evolution of Analytics

Statistics and Computers

Data Analytics is based on statistics. It has been surmised statistics were
used as far back as Ancient Egypt for building pyramids. Governments
worldwide have used statistics based on censuses, for a variety of
planning activities, including taxation. After the data has been collected,
the goal of discovering useful information and insights begins. For
example, an analysis of population growth by county and city could
determine the location of a new hospital.
The development of computers and the evolution of computing
technology has dramatically enhanced the process of Data Analytics. In
1880, prior to computers, it took over seven years for the U.S. Census
Bureau to process the collected information and complete a final report.
In response, inventor Herman Hollerith produced the “tabulating
machine,” which was used in the 1890 census. The tabulating machine
could systematically process data recorded on punch cards. With this
 Evolution of Analytics

Relational Databases and Non-Relational Databases

Relational Databases were invented by Edgar F. Codd in the 1970s and
became quite popular in the 1980s. Relational Databases (RDBMs), in
turn, allowed users to write in Sequel (SQL) and retrieve data from their
database. Relational Databases and SQL provided the advantage of
being able to analyze data on demand, and are still used extensively.
They are easy to work with, and very useful for maintaining accurate
records. On the negative side, RDBMs are generally quite rigid and were
not designed to translate unstructured data.
During the mid-1990s, the internet became extremely popular, but
relational databases could not keep up. The immense flow of
information combined with the variety of data types coming from many
different sources led to non-relational databases, also referred to as
NoSQL. A NoSQL database can translate data using different languages
and formats quickly and avoids SQL’s rigidity by replacing its “organized”
 Evolution of Analytics

Data Warehouses
In the late 1980s, the amount of data being collected continued to grow
significantly, in part due to the lower costs of hard disk drives. During
this time, the architecture of Data Warehouses was developed to help in
transforming data coming from operational systems into decision-
making support systems. Data Warehouses are normally part of the
Cloud, or part of an organization’s mainframe server. Unlike relational
databases, a Data Warehouse is normally optimized for a quick response
time to queries. In a data warehouse, data is often stored using a
timestamp, and operation commands, such as DELETE or UPDATE, are
used less frequently. If all sales transactions were stored using
timestamps, an organization could use a Data Warehouse to compare
the sales trends of each month.
 Evolution of Analytics

Business Intelligence
The term Business Intelligence (BI) was first used in 1865, and was later
adapted by Howard Dresner at Gartner in 1989, to describe making
better business decisions through searching, gathering, and analyzing
the accumulated data saved by an organization. Using the term
“Business Intelligence” as a description of decision-making based on
data technologies was both novel and far-sighted. Large companies first
embraced BI in the form of analyzing customer data systematically, as a
necessary step in making business decisions.
 Evolution of Analytics

Data Mining
Data Mining began in the 1990s and is the process of discovering
patterns within large data sets. Analyzing data in non-traditional ways
provided results that were both surprising and beneficial. The use of
Data Mining came about directly from the evolution of database and
Data Warehouse technologies. The new technologies allow
organizations to store more data, while still analyzing it quickly and
efficiently. As a result, businesses started predicting the potential needs
of customers, based on an analysis of their historical purchasing
patterns.
However, data can be misinterpreted. Someone in the trades, having
purchased two pairs of blue jeans online, probably won’t want to buy
jeans for another two or three years. Targeting this person with blue
jean advertisements is both a waste of time and an irritant to the
potential customer.
 Evolution of Analytics

Big Data
In 2005, Big Data was given that name by Roger Magoulas. He was
describing a large amount of data, which seemed almost impossible to
cope with using the Business Intelligence tools available at the time. In
the same year, Hadoop, which could process Big Data, was developed.
Hadoop’s foundation was based on another open-source software
framework called Nutch, which was then merged with Google’s
MapReduce.
Apache Hadoop is an open-source software framework, which can
process both structured and unstructured data, streaming in from
almost all digital sources. This flexibility allows Hadoop (and its sibling
open-source frameworks) to process Big Data. During the late 2000s,
several open source projects, such as Apache Spark and Apache 
Cassandra came about to deal with this challenge.
 Evolution of Analytics

Analytics in the Cloud

In its early form, the Cloudwas a phrase used to describe the “empty
space” between users and provider. Then, in 1997, Emory University
professor Ramnath Chellappa described Cloud Computing as a new
“computing paradigm where the boundaries of computing will be
determined by economic rationale, rather than technical limits alone.”
In 1999, Salesforce provided a very early example of how to use Cloud
Computing successfully. Though primitive by today’s standards,
Salesforce used the concept to develop the idea of delivering software
programs by way of the internet. Programs (or applications) could be
accessed or downloaded by any person with internet access. An
organization manager could purchase software in a cost-effective, on-
demand method without leaving the office. As businesses and
organizations gained a better understanding of the Cloud’s services and
usefulness, it gained in popularity.
 Evolution of Analytics

Predictive Analytics
Predictive Analytics is used to make forecasts about trends and behavior
patterns. Predictive Analytics uses several techniques taken from
statistics, Data Modeling, Data Mining, Artificial Intelligence, and
Machine Learning to analyze data in making predictions. Predictive
models can analyze both current and historical data to understand
customers, purchasing patterns, procedural problems, and in predicting
potential dangers and opportunities for an organization.
Predictive Analytics first started in the 1940s, as governments began
using the early computers. Though it has existed for decades, 
Predictive Analytics has now developed into a concept whose time has
come. With more and more data available, organizations have begun
using Predictive Analytics to increase profits and improve their
competitive advantage. The continuous growth of stored data,
combined with an increasing interest in using data to gain Business
Steps in HRA
 Steps in HRA

Step 1: Define Your Questions

In your organizational or business data analysis, you must begin with the
right question(s). Questions should be measurable, clear and concise.
Design your questions to either qualify or disqualify potential solutions
to your specific problem or opportunity.
HR METRICS AND ANALYTICS – Dr.Ujjal Mukherjee Page 9
For example, start with a clearly defined problem: A government
contractor is experiencing rising costs and is no longer able to submit
competitive contract proposals. One of many questions to solve this
business problem might include: Can the company reduce its staff
without compromising quality?
 Steps in HRA

Step 2: Set Clear Measurement Priorities

This step breaks down into two sub-steps:
A) Decide what to measure, and
B) Decide how to measure it.
A) Decide what to measure
Using the government contractor example, consider what kind of data
you‘d need to answer your key question. In this case, you‘d need to
know the number and cost of current staff and the percentage of time
they spend on necessary business functions. In answering this question,
you likely need to answer many sub-questions (e.g., are staff currently
under-utilized? If so, what process improvements would help?). Finally,
in your decision on what to measure, be sure to include any reasonable
objections any stakeholders might have (e.g., if staff are reduced, how
would the company respond to surges in demand?).
 Steps in HRA

B) Decide how to measure it

Thinking about how you measure your data is just as important,
especially before the data collection phase, because your measuring
process either backs up or discredits your analysis later on. Key
questions to ask for this step include:
 What is your time frame? (e.g., annual versus quarterly costs)
 What is your unit of measure? (e.g., usd versus euro)
 What factors should be included? (e.g., just annual salary versus
annual salary plus cost of staff benefits)
 Steps in HRA

Step 3: Collect data

With your question clearly defined and your measurement priorities set,
now it‘s time to collect your data. As you collect and organize your data,
remember to keep these important points in mind:
 Before you collect new data, determine what information could be
collected from existing databases or sources on hand. Collect this data
first.
 Determine a file storing and naming system ahead of time to help all
tasked team members collaborate. This process saves time and prevents
team members from collecting the same information twice.
 If you need to gather data via observation or interviews, then develop
an interview template ahead of time to ensure consistency and save
time. Keep your collected data organized in a log with collection dates
and add any source notes as you go (including any data normalization
performed). This practice validates your conclusions down the road.
 Steps in HRA

Step 4: Analyze data

After you‘ve collected the right data to answer your question from step
1, it‘s time for deeper data analysis. Begin by manipulating your data in
a number of different ways, such as plotting it out and finding
correlations or by creating a pivot table in excel. A pivot table lets you
sort and filter data by different variables and lets you calculate the
mean, maximum, minimum and standard deviation of your data – just
be sure to avoid these five pitfalls of statistical data analysis.
As you manipulate data, you may find you have the exact data you need,
but more likely, you might need to revise your original question or
collect more data. Either way, this initial analysis of trends, correlations,
variations and outliers helps you focus your data analysis on better
answering your question and any objections others might have.
 Steps in HRA

Step 5: Interpret results

After analyzing your data and possibly conducting further research, it‘s
finally time to interpret your results. As you interpret your analysis, keep
in mind that you cannot ever prove a hypothesis true: rather, you can
only fail to reject the hypothesis. Meaning that no matter how much
data you collect, chance could always interfere with your results.
As you interpret the results of your data, ask yourself these key
questions:
 Does the data answer your original question? How?
 Does the data help you defend against any objections? How?
 Are there any limitation on your conclusions, any angles you haven‘t
considered?
 Steps in HRA

If your interpretation of the data holds up under all of these questions

and considerations, then you likely have come to a productive
conclusion. The only remaining step is to use the results of your data
analysis process to decide your best course of action.
By following these five steps in your data analysis process, you make
better decisions for your business or government agency because your
choices are backed by data that has been robustly collected and
analyzed. With practice, your data analysis gets faster and more
accurate – meaning you make better, more informed decisions to run
your organization most effectively.
Applications of HRA
 Applications of HRA

1) Talent Acquisition. ...

2) Training and evaluation. ...
3) Employee performance. ...
4) Financial compensation. ...
5) Retention. ...
6) Marketing. ...
7) Planning. ...
8) Health and injuries
Types of HRA
 Types of HRA

Descriptive analytics is the interpretation of historical data to better

understand changes that have occurred in a business. Descriptive
analytics describes the use of a range of historic data to draw
comparisons.

Diagnostic analytics is a form of advanced analytics that examines data

or content to answer the question, “Why did it happen?” It is
characterized by techniques such as drill-down, data discovery, data
mining and correlations.

Predictive analytics is a category of data analytics aimed at making

predictions about future outcomes based on
historical data and analytics techniques such as statistical modeling and
machine learning. The science of predictive analytics can generate
future insights with a significant degree of precision.
 Types of HRA

Prescriptive Analytics is the area of data analytics that focuses on

finding the best course of action in a scenario given the available data.
It's related to both descriptive analytics and predictive analytics but
emphasizes actionable insights instead of data monitoring.

Cognitive analytics is a field of analytics that tries to mimic the human

brain by draw inferences from existing data and patterns, draws
conclusions based on existing knowledge bases and then inserts this
back into the knowledge base for future inferences - a self learning
feedback loop.
Types of HRA