UNIT-I

INTRODUCTION TO Human Resources Management: Context and Concept of People Management in a Systems
Perspective – Organization and Functions of the HR and Personnel Department – HR Structure and Strategy; Role of
Government and Personnel Environment including that of MNCs.
Introduction

Some of the alleged problems to which the new HRM model is the supposed solution are addressed in this
chapter. It begins by discussing the ‘open system’ model (see figure 4.1.).

The chapter proceeds to discuss the dynamics of the global economy and emphasizes that to understand the
HRM function requires an appreciation of the external contexts. A framework for examining the external context of
HRM is given in figure 4.2.

The economic context

Compared to a decade ago organizations face intense competition and from both domestic and international
competitors. The nature of competition is also said to have changed as mass markets have fragmented into specialized
‘niche’ markets. Globalization has affected all aspects of the model (see figure 4.2). A contested concept,
globalization has been analyzed as an economic, political and social phenomenon.

The technological context

Microprocessor-based technology (MBT) and innovations in communications, such as the Internet have
affected product and labour markets, and organizational design. As this Guide was being prepared Apple launched its
latest communication device, the iPhone. How will this device influence communications within organizations?
Survey data suggests the use of teams is widespread – 72% of all UK workplaces reporting some form of teams. 2004
EEPS found team working to be a central component of high-performance work practices.

The political context

It’s emphasized that the political context is the most complex and most difficult to analyze. To cushion the effects of
economic restructuring there have been growing demands for changing the employment relationship including,
regulating trade union organization and activities, employment standards, and pay equity.

Change and human resource management

Employment relations and HRM is constantly reshaped by new economic, political and social realities. Changes in the
levels of unemployment, structural transformation (e.g. deindustrialization) and social trends (ageing population) shift
the balance of power individual and collective contract negotiations.

Debate on whether globalization will cause work organizations to become ‘disembodied’ from society in which they
operate is examined.

Nature of HRM:

It is a management function that helps manager recruit, select, train and develops members for an organization
obviously; HRM is constituted with the people’s dimension in organizations.

Specifically, the following constitute the core of HRM:

 Organization is not mere bricks, mortar, machineries or inventories. They are people. It is the people who staff
and manage organizations
 HRM involves the application of management functions and principles. The functions and principles are
applied to acquisitioning, developing maintaining and remunerating employees in organizations
 Decisions relating to employees must be integrated. Decision on different aspect of employees must be
consistent with other human resource decisions
 Decision made must influence the effectiveness of an organization. Effectiveness of an organization must
result in betterment of services to customer in the form of high-quality products supplied at reasonable costs.
 HRM functions are not confined to business establishments only. They are applicable in non-business
organization, too such as education, health care recreation, and the like.

1
  Obviously, HRM refer to a set of programmes, functions and activities designed and carried out I order to
maximize both employees as well as organizational effectiveness

Scope of HRM:

Organization and Functions of the HR and Personnel Department:

the functions of the human resource department

HRM is a managerial function that tries to match an organization’s needs to the skills and abilities of its
employees. Human Resource Management is responsible for how people are managed in the organizations. It is
responsible for bringing people in organization helping them perform their work, compensating them for their work
and solving problems that arise. The role of human resource management is to plan, develop, and administer policies
and programmes designed to make expeditious use of an organization’s human resources. It is that part of
management which is concerned with the people at work and with their relationship within an enterprise.

Its objectives are: (1) the effective utilization of human resources; (2) desirable working relationships among all
members of the organization; and (3) maximum individual development. The major functional areas in human
resource management are: (1) planning, (2) staffing, (3) employee development, and (4) employee maintenance.
These four areas and their related functions share the common objective of an adequate number of competent
employees with the skills, abilities, knowledge, and experience needed for further organizational goals. Although each
human resource function can be assigned to one of the four areas of personnel responsibility, some functions serve a
variety of purposes. For example, performance appraisal measures serve to stimulate and guide employee
development as well as salary administration purposes. The compensation function facilitates retention of employees
and also serves to attract potential employees to the organization. A brief description of usual human resource
functions is given below:

2
 Functions of human resource department

Management Operative
functions functions

Planning

Organizing
Procurement Development Compensation Integration Maintenance
Staffing
N

Directin
g

Controlling

MANAGERIAL FUNCTIONS

PLANNING:

This function deals with the determination of the future course of action to achieve desired results. Planning of
personnel today prevents crises tomorrow. The personnel manager is expected to determine the personnel programme
regarding recruitment, selection and training of employees.

ORGANIZING:

This function is primarily concerned with proper grouping of personnel activities, assigning of different
groups of activities to different individuals and delegation of authority. Creation of a proper structural framework is
his primary task. Organizing, in fact, is considered to be the wool of the entire management fabric and hence cannot
afford to be ignored.

DIRECTING:

This involves supervising and guiding the personnel. To execute plans, direction is essential for without direction
there is no destination. Many a time, the success of the organization depends on the direction of things rather than
their design. Direction then consists of motivation and leadership. The personnel manager must be an effective leader
who can create winning teams. While achieving results, the personnel manager must, invariably, take care of the
concerns and expectations of employees at all levels.

CONTROLLING:

Comprehensive plans; solid organization, and outstanding leaders do not guarantee success. The fourth
Functional controlling, monitors progress and implements necessary changes. When managers implement their plans,
they often find that things are not working out as planned. The controlling function makes sure that goals are met.
It asks and answers the question, "Are our actual outcomes consistent with our goals?" It makes adjustments
as needed. Specific controlling activities are to set performance standards that indicate progress toward long-term
goals; to identify performance problems by comparing performance data against standards; and to take actions to
correct problems.
Budgeting, information systems, cost cutting, and disciplinary action are just a few of the tools of control.
Successful organizations, large and small, pay close attention to how well they are doing. They take fast action when
problems arise, and are able to change as needed. The outcome of controlling is an accurate measurement of
performance and regulation of efficiency and effectiveness

3
OPERATIVE FUNCTIONS:

The operative functions of P/HRM are related to specific activities of personnel management, viz., employment,
development, compensation and industrial relations. These functions are to be performed in conjunction with
managerial functions.

1. PROCUREMENT FUNCTION:
The first operative function of personnel management is procurement. It is concerned with procuring
and employing people who possess necessary skill, knowledge and aptitude. Under its purview you have job
analysis, manpower planning, recruitment, selection, placement, induction and internal mobility.

i. Job analysis:
It is the process of collecting information relating to the operations and responsibilities pertaining to
a specific job.
ii. Human resources planning:
It is a process of determining and assuring that the organization will have an adequate number of
qualified persons, available at proper times, performing jobs which would meet their needs and provide
satisfaction for the individuals involved.
iii. Recruitment:
It is the process of searching for prospective employees and stimulating them to apply for jobs in the
organization.
iv. Selection:
It is the process of ascertaining qualifications, experience, skill and knowledge of an applicant with a
view to appraising his/her suitability to the job in question.
v. Placement:
It is the process that ensures a 360º fit, matching the employee’s qualifications, experience, skills and
interest with the job on offer. It is the personnel manager’s responsibility to position the right candidate at the
right level.
vi. Induction and orientation:
Induction and orientation are techniques by which a new employee is rehabilitated in his new
surroundings and introduced to the practices, policies, and people. He must be acquainted with the principles
which define and drive the organization, its mission statement and values which form its backbone.
vii. Internal Mobility:
The movement of employees from one job to another through transfers and promotions is called
internal mobility. Some employees leave an organization due to various reasons leading to resignation,
retirement and even termination. These movements are known as external mobility. In the best interest of an
organization and its employees, such job changes should be guided by well-conceived principles and policies.
2. DEVELOPMENT:

It is the process of improving, molding, changing and developing the skills, knowledge, creative ability, aptitude,
attitude, values and commitment based on present and future requirements both at the individual’s and organization’s
level. This function includes:

I. Training: Training is a continuous process by which employees learn skills, knowledge, abilities and
attitudes to further organizational and personnel goals.

ii. Executive development: It is a systematic process of developing managerial skills and capabilities
through appropriate programmers.

iii. Career planning and development: It is the planning of one’s career and implementation of career
plans by means of education, training, job search and acquisition of work experiences. It includes succession planning
which implies identifying developing and tracking key individuals for executive position

3. MOTIVATION AND COMPENSATION:

It is a process which inspires people to give their best to the organization through the use of intrinsic
(achievement, recognition, responsibility) and extrinsic (job design, work scheduling, appraisal based
incentives) rewards.

4
 I Job design: Organizing tasks and responsibilities towards having a productive unit of work is
called job design. The main purpose of job design is to integrate the needs of employers to suit the
requirements of an organization.

ii. Work scheduling: Organizations must realize the importance of scheduling work to motivate
employees through job enrichment, shorter work week’s flexi-time, work sharing and home work
assignments. Employees need to be challenged at work and the job itself must be one that they value. Work
scheduling is an attempt to structure work, incorporating the physical, physiological and behavioral aspects of
work.

iii. Motivation: Combining forces that allow people to behave in certain ways is an integral
aspect of motivation. People must have both the ability and the motivation if they are to perform at a high
level. Managers generally try to motivate people through properly administered rewards (financial as well
anon-financial).

iv. Job evaluation: Organizations formally determine the value of jobs through the process of
job evaluation. Job evaluation is the systematic process of determining the relative worth of jobs in order to
establish which jobs should be paid more than others within the organization. Job evaluation helps to establish
internal equality between various jobs.

v. Performance appraisal: After an employee has been selected for a job, has been trained to
do it and has worked on it for a period of time, his performance should be evaluated. Performance evaluation
or appraisal is the process of deciding how employees do their jobs. It is a method of evaluating the behavior
of employees at the workplace and normally includes both the quantitative and qualitative aspects of job
performance. It is a systematic and objective way of evaluating work-related behavior and potential of
employees. It is a process that involves determining and communicating to an employee how he or she is
performing and ideally, establishing a plan of improvement. The appraisal process consists of six steps:

a. Establish performance standards with employees;

b. Set measurable goals (manager and employee);
c. Measure actual performance;
d. compare actual performance with standards;
e. Discuss the appraisal with the employees and
f. If necessary initiate corrective action.
vi. Compensation administration: Compensation administration is the process of dividing how
much an employee should be paid. The important goals of compensation administration are to design a
low-cost pay plan that will attract, motivate and retain competent employees-which is also perceived to
be fair by these employees.

vii. Incentives and benefits: In addition to a basic wage structure, most organizations nowadays offer
incentive compensation based on actual performance. Unlike incentives, benefits and services are offered to
all employees as required by law including social security, insurance, workmen's compensation, welfare
amenities etc. Organizations have been offering a plethora of other benefits and services as well as a means of
‘sweetening the pot’. (Employee stock options, birthday gifts, anniversary gifts, paid holidays, club
membership)

4. MAINTENANCE: It aims at protecting and preserving the physical and psychological health of employees
through various welfare measures.

I. Health and safety: Managers at all levels are expected to know and enforce safety and health
standards throughout the organization. They must ensure a work environment that protects employees from physical
hazards, unhealthy conditions and unsafe acts of other personnel. Through proper safety and health programmers, the
physical and psychological well-being of employees must be preserved and even improved.

ii. Employee welfare: Employee welfare includes the services, amenities and
Facilities offered to employees within or outside the establishment for their physical, psychological and social
well being. Housing, transportation, education and recreation facilities are all included in the employee welfare
package.

5
 iii. Social security measures: Managements provide social security to their employees in addition to fringe
benefits. These measures include: (a) Workmen’s compensation to those workers (or their dependents) who are
involved in accidents; (b) Maternity benefits to women employees; (c) Sickness benefits and medical benefits; (d)
Disablement benefits/allowance; (e) Dependent benefits; (f) Retirement benefits like Provident Fund, Pension,
Gratuity, etc.

5. INTEGRATION FUNCTION: This tries to integrate the goals of an organization with employee aspirations
through various employee-oriented programmers, like redressing grievances promptly, instituting proper disciplinary
measures, empowering people to decide things independently, encouraging a participative culture, offering
constructive help to trade unions etc.

I. Grievance redressed: A grievance is any factor involving wages, hours or conditions of employment
that is used as a complaint against the employer. Constructive grievance handling depends first on the
manager’s ability to recognize, diagnose and correct the causes of potential employee dissatisfaction before it
converts into a formal grievance.

ii. Discipline: It is the force that prompts an individual or a group to observe the rules, regulations and
procedures, which are deemed necessary for the attainment of an objective.

iii. Teams and teamwork: Self-managed teams have emerged as the most important formal groups in
today’s organizations. They enhance employee involvement and have the potential to create positive synergy.
By increasing worker interaction, they create camaraderie among team members. They encourage individuals
to sublimate their individual goals for those of the group. Teams have inherent strengths which ultimately lead
to organizational success at various levels.

iv. Collective bargaining: It is the process of agreeing on a satisfactory labor contract between
management and union. The contract contains agreements about conditions of employment such as wages,
hours, promotion, and discipline; lay off, benefits, vacations, rest pauses and the grievance procedure.

The process of bargaining generally takes time, as both parties tend to make proposals and counter-
proposals. The resulting agreement must be ratified by unions, workers and management.

v. Employee participation and empowerment: Participation means sharing the decision-making

power with the lower ranks of an organization in an appropriate manner. When workers participate in
organizational decisions they are able to see the big picture clearly and also how their actions would impact the
overall growth of the company. They can offer feedback immediately based on their experiences and improve
the quality of decisions greatly. Since they are now treated with respect, they begin to view the job and the
organization as their own, and commit themselves to organizational objectives whole-heartedly.

vi. Trade unions and employees association: Trade union is an association either of employees or
employers or independent workers. It is a relatively permanent a body formed by workers with the objective of
countering exploitation and harassment. It strives towards providing economic and social benefits to the labor
community.

Trade unions have always played a powerful role in improving the lot of workers in India, using aggressive
bargaining tactics. However since the 90’s, the situation changed dramatically. Unable to fight the forces of
competition, many employers have been forced to shut down units and scale down operations.

This has made both parties realize the importance of bargaining for their rights in an atmosphere of ‘give and
take’.

vii. Industrial relations: Harmonious industrial relations between labor and management are essential to
achieve industrial growth and higher productivity. When the relationship between the parties is not cordial,
discontentment develops and conflicts erupt abruptly.

It is not always easy to put out the fires with the existing dispute-settlement-machinery, created by the
government. Hence both labor and management must appreciate the importance of openness, trust and
collaboration in their day-to-day dealings.

6
HR Structure and Strategy:

HR Strategy:

It wants its people and leaders to be:

 passionate about achieving the company's goals

 focused on essential areas such as developing new products to deadlines
 developing new skills and expertise to ensure the highest standards are maintained
 recognized and celebrated for their achievements
 creative and innovative in how they work.

HR Structure:

“HRM is a proactive acqucision, rententation & development of human resources in the

organization.”

HR structure is process of structure by which the employees move in the heriracal manner & they have formal
line how to communicate with their seniors employees.

Organization structures:

1. formal structure:
 formal structure is well defined jobs; each consists of definite measure of authority, responsibility&
accountability.

authority

Responsibility

Accountability

A- activities I-interaction S-sentimental

2. Informal structure:

 while a bank office is planning to meet the employees outside for every Saturday for
2hrs.then they are called as informal structure.
 The informal org is spontaneous & formal org is deliberation, authority & responsibility
Status politics

power

A-activities I-interaction S-sentimental

Hence the org structure has 3 major structures they are:

Functional, line and staff, matrix organization.

7
 In the functional org we have hierarch of standard in each level…
 There are no formal standard rules for employees to work under single department...
 The employees can work with every department for limited duration.
 The project will be going on till the project completed the employees will work in single department after it
get over they disassemble and form a new team.
 This function org is mainly based on the formation of team and execution is done with that.
 We have many foremen’s and workforce employees. They lower level and middle level member.
 Most of this type of organization is formed in s/w company & production unit.
 You will also need to negotiate conflicts in the workplace, whether they involve employees or clients. You
may find yourself managing not only your employees, but also handling people management involving
customers or clients depending upon the industry. You need to be kind, confident and comfortable in your
people management role in order to succeed. While you cannot always be friends with your employees, you
can be approachable and work hard to create an environment in which they will enjoy working. While many
managers find that their tasks extend well beyond just employee management, this is the skill that can make
or break a manager's success.
 You may also find that in a small company you lack written policies with regard to a variety of employee
management issues. You may wish to create these, or simply opt to deal with each situation individually.
Both options do have merit. Regardless, it is important to make sure that your small business employees do
understand their job expectations and receive regular feedback. This is a critical part of people management
in any size company at all.
 All the employees are common to all. the other department can command.

LINE & STAFF ORG MD

GM

Manage finance M.production HRM

Manage m/k

Deputy m.m/k Deputy m.fin Deputy m.prp Deputy m.hr

officers officers officers officers

salesman workforce assistants

assistants

It’s widely felt that “HRM is a line manager’s responsibility but a staff function”.

 The responsibility of line managers is to attain effective goals of their respective department by the proper
management of materials, machine, money & men.

 Thus 4m’s are very important in line & stall management.

8
  Personnel department generally acts in an advisory capacity, it provides information, offer suggestions & is
not responsible for the end result.

 The personnel manager must exercise control very tactfully in order to win the confidence & co-operation of
all line managers

 Attaining overall organization goals is the responsibility of the general manager through proper management
of the personnel and with the help of different heads with the department heads concerned

 In turn management of personnel in different departments is the responsibility of heads concerned.

 In the 1st level superiors are also responsible for managing the men their respective section in achieving their
goals.

 Handling Difficult Situations when Managing People If you work in employee management, you may find
that difficult situations arise more often than you would like. These may be major or quite minor, but they
must be handled well in order to keep your workplace functioning smoothly. As someone who works in
people management, your first responsibility is to insure that your workers are physically safe. Safety
equipment should be provided and used, and any machinery should be appropriately maintained. Make certain
that all employees understand emergency procedures. It is also critical that anyone in employee management
maintain an environment that feels safe. Racism, sexual harassment, and overall rudeness should not be
tolerated in the workplace.

 While some issues, like safety, may be clear, others can be more ambiguous. In employee management, you
will often find yourself negotiating conflicts between employees. Good communication skills can help with
this. Know your human resources policies with regard to such issues. In some cases disciplinary action may be
required, or perhaps a lateral move. In others, simply helping the two employees to work out their issues in a
civil war may be adequate to remedy this difficult employee management situation.
 The line relation delegates authority and responsibility of the managing directors and supervisors.
MATRIX ORG:

MD

GM

Manage m/k Manage finance M.production HRM

salesman salesman

salesman salesman

salesman salesman
9
Matrix organization structure employees have two superiors, they are under dual authority.

 One chain of command is function and the other chain of command is project team. hence matrix structure
is referred to as a multi command system ,
 The team of employees of personnel department has two superiors, personal manager and project
manager.
 Both dimension of structure are permanent & balanced with power held equally by both functional and
project manager.
 Te personnel department ha staff relationship with other department managers in the total organization.
 Assessing the skills possessed by people and how well they perform allows the company to plan
individual training, professional development and reward/compensation actions.
 Personnel department generally acts in an advisory capacity; it provides information, offer suggestions &
is not responsible for the end result.
 The personnel manager must exercise control very tactfully in order to win the confidence & co-operation
of all line managers.
 He has to persuade the line managers to work with staff complicate the tasks both of line & personnel
manage in the task of dealing with human resources.

UNIT-II:
HR PLANNING AND SELECTION: Human Resource Information System (HRIS), Manpower Planning –
Selection System including Induction – Performance and Potential Appraisal; Coaching and Mentoring; HRM issues
and practices in the context of Outsourcing as a strategy and MNCs.

HR PLANNING AND SELECTION

Definition - HR PLANNING

According to Terry L. leap and Michael D. Crino, “ HRP includes estimation of how many qualified people
are necessary to carry out the assigned activities, how many people will be available and what, if anything, must be
done to ensure that personnel supply equals personnel demand at the appropriate point in the future.”

Human Resource Planning Process:

How to have the right number of people with right skills at right times? The process of human resource planning helps
in this regard. The human resource planning process consists of actives relating to future demand for and supply of
manpower and matching the two in the context of overall organizational plans and objectives.

Analyzing Organizational Plans and Objectives:

Analyzing Objectives of Human Resource Planning

Forecasting Demand for Human Resource.

Forecasting Supply of Human Resources.

Matching Demand and Supply.

Monitoring and Control.

Analyzing Organizational Plans and Objectives: The process of human planning begins with analyzing the
overall plans and objectives of organization. The reason being human resource plans stem from business plans.
Analysis of business plans into sub-sectional and functional plans such as technology, production, finance,
marketing, expansion and diversification provides for assessing the human resource requirements for each activity in
each section and department.
10
 Analyzing Objectives of Human Resource Planning: The main purpose of human resource planning is matching
employees abilities to enterprise requirements, with an emphasis on future instead of present argument.
According to sikula, “the ultimate mission or purpose of human resource planning is to relate future human
resource to future enterprise need so as to maximize the future return on investment in human resources”.

Forecasting Demand for Human Resource. The demand for human resources in an organization is subject to
vary from time to time, depending upon both external factors. External factors include competition, economic and
political climate, technological changes, government policy, etc.
Among the internal factors include growth and expansion, design and structural changes, management
philosophy, change in leadership style, employees resignation, retirement, termination, death, etc. Therefore, while
forecasting future demand for human resources in the organization, these factors need to be taken into consideration.

Forecasting demand for human resources is good for several reasons because
it can help:
(I) quantify the number of jobs required at a given time for
Producing a given number of goods, or offering a given amount of services.
(ii) ascertain a staff-matrix needed at different points of time in the future, and
iii) Ensure adequate availability of people with varying qualifications and
Skills as and when required in the organization.

Forecasting Supply of Human Resources. Having forecast human demand, the next task involved in human resource
planning is to forecast human resource supply. Forecast of human resource supply gives the quantity and quality of
people available from internal and external sources of manpower supply, after making due allowances for
absenteeism, transfer, promotion, and changes in work hours, and other conditions of works”.
Forecasting of human resources begins with the current human resources inventory, also called
Human resource audit. It reveals what is available in the stock of manpower and what can be expected in
future. Thus it can indicate whether the supply of human resources is less than its demand or more than its
demand.

Matching Demand and Supply. Once demand for and supply of human resources of an organization is forecast, the
two need to be reconciled. Such reconciliation will reveal either shortage or situation, i.e., to strike a balance between
the two. In the case of shortage of human resources, this will be met through recruitment, transfer, promotion, training,
and development, retention, etc.
on the contrary, in case of surplus human resources, it can be made good thorough schemes like
redeployment, retrenchment, voluntary retirement (VRS) scheme though golden handshake, etc. will be
recommended and implemented.

Monitoring and Control. The sixth and final step involved in human resource planning is monitoring and control.
Once the action plans are implemented, these need to be reviewed, regulated and monitored against the set standards.

Monitoring of action plans and programmes help reveal deficiencies, in the case of presence of any.
Corrective measures help remove deficiency and, thus, control the implementation of action plans in the right
direction. In case of changes in business environment, the action plans formulated earlier need to be modified in the
light of changing needs of organization in the changed environment.

HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

The use of Human Resource Information Systems (HRIS) has been advocated as an opportunity for human
resource (HR) professionals to become strategic partners with top management. The idea has been that HRIS would
allow for the HR function to become more efficient and to provide better information for decision-making. The
question remains whether HRIS has fulfilled its promise.

In its most basic form HRIS is a system used to acquire, store, manipulate, analyze, retrieve and distribute
pertinent information about an organization’s human resources. It is often regarded as a service provided to an
organization in the form of information (Tannenbaum, 1990). However, the promise is that, as the use of these
systems becomes more widespread, higher level forms of HRIS will evolve. Lengnick-Hall and Moritz (2003) have
postulated that HRIS will be implemented at three different levels: the publishing of information; the automation of
transactions; and, finally, a change in the way human resource management is conducted in the organization by
11
transforming HR into a strategic partner with the line business. In their view, the evolution of HR as promoted by
HRIS evolves from information to automation and from automation to transformation. They note that while HRIS has
been widely deployed, a transformation of human resource management has occurred in relatively few organizations

Definition

A system which seeks to merge the activities associated with human resource management (HRM) and
information technology (IT) into one common database through the use of enterprise resource planning (ERP)
software. The goal of HRIS is to merge the different parts of human resources, including payroll, labor productivity,
and benefit management into a less capital-intensive system than the mainframes used to manage activities in the past.
Also called Human Resource Management Systems (HRMS)

Skelta HRIS provides a powerful BPM-enabled framework that expedites development and integration of HRIS and
HRMS systems. Skelta HRIS significantly reduces the costs and time for implementing enterprise-wide
HRIS. Further, Skelta HRIS is completely business-user friendly and enables HR professionals and consultants to
play a key role in HR system initiatives.

Skelta HRIS helps automate core HR and payroll processes such as:

 Recruitment
 Induction
 Training
 Performance Management
 Compensation and Benefits
 Payroll
 Leave Management

Skelta HRIS helps you transform your HRIS processes from record maintenance systems into a powerful,
interactive and collaborative platform for employee engagement.

1.DEFINE

HRIS’ web-based process designer enables HR managers and professionals to quickly define workflows, actors and
other components of the HRIS process. It also enables business users to easily define business rules and escalation
paths. Skelta HRIS makes it easy to transform organization policies into automated processes for effective
compliance.
----- Skelta
2.BULID

Skelta’s 100% web-based Forms Designer provides a simplified drag and drop interface to create and manage HRIS
forms. You can design forms, maintain form templates, define a form’s business logic, make changes and preview
forms. Further, Skelta’s superior integration capabilities and native connectors allow you to facilely connect your
HRIS applications to other third-party applications and systems such as payroll processors.

3.DEPLOY

A 100% web-based system, Skelta HRIS is specifically designed for early adoption, a seamless and enterprise-wide
rollout with features such as anytime, anywhere access; localization support; extensive resource management and
comprehensive document management features.

STEPS INVOLVING IN HRIS:

Process Definition

Form Design

Deployment

12
Step 1: Process Definition
In this step, the Performance and Development plan is designed using Skelta’s Process Designer.

Step 2: Form Design

In this step, the input forms required are designed using Skelta’s Forms Designer.

Step 3: Deployment
And in this last and final step, the new Performance and Development process is published to all users.
Employees and managers now have access to and can act on their individual Performance and Development plans
through Skelta’s revolutionary Work item List.

Enterprise Benefits

 Complete visibility over all enterprise processes – manual, undocumented and automated
 Better alignment of enterprise objectives to processes through centralized process management
 Eliminates duplication of process management efforts – provides centralized control over all process
audits and assessments such as ISO, Sarbanes-Oxley, internal audits, SEI-CMM and other administrations
 A one-stop solution for all BPM needs for process analysis, discovery, design, execution and monitoring
 Enhanced control over changes to processes
 Exposes process inter-dependencies to eliminate process-related conflicts
 Workflow execution that is powered by Skelta’s award-winning workflow engine
 Enables integrated process automation by enabling workflow associations with SharePoint, websites,
applications and ERP systems such as SAP
 Centralized administration and configuration of all Skelta workflows
 Advantages of advanced BPM functionality such as Human Workflow Services, multi-channel access,
queue management, load balancing and activity monitoring

System Developer Benefits

 Rapid application development

 Lowers development costs
 Separation of process abstraction layer from core application functions for easy customization
 Greater flexibility for end-user management of business processes
 Provides instant capabilities for anytime, anywhere access to application processes

 Business User Benefits

 Empowered business users
 Stronger processes
 Enhanced productivity
 Lower outlay on IT Resources
 Simplified system administration through application integration
 Zero lead time for effective usage
 Increased ROI on existing IT investments
 Complete visibility over all enterprise processes
 Better alignment of enterprise objectives to processes
 Eliminates duplication of process management efforts
 Anytime, anywhere access with multiple channels for task delivery and response -
Email, Web, Windows forms, IM, SMS and Voice

SETTING UP HIRS

1. Install hardware and software. The features that compel you to select a particular package may require an
equipment upgrade. The pop-up menus and context-sensitive help messages require significant power to operate. The
new software may not run on the personnel assistant's 286.

13
 Check the following on each machine that will be using the system: the version of DOS, the amount of
available (working) RAM, the size of the hard disk and the power of the processor (286, 386, 486 or 586). Use the
vendor's specifications to verify that the equipment will have the power that's needed.

Never underestimate how much available RAM and disk space you will require. If you have made the leap
into scanning, the scanner and optical character reader need to be checked. The rule of thumb is the more pieces of
equipment, the more details to check and "glitches" that will take time to solve.

Installing software for most products is a simple task. The "Install" routine that comes with the system will
walk you through the program, generally requiring only that you provide a little information on your drive and
location for the directory and files.

Several related tasks will take a bit more time such as checking printer drivers, setting up a test database, and
establishing passwords and other privileges. If the system will operate on a network, the administrator should do the
installation.

2. Complete basic training. In order to do Steps 3 and 4 of developing and implementing your system, you will need
some training on the system. Vendor training is often delivered in a one-time dose of two to four days, covering in
rapid succession everything you need to know about the system.

Meanwhile your brain is reeling from the number of screens and the multitude of codes, and you're wondering
if you will ever remember your password, much less how to do open enrollment. If possible, arrange for training to be
delivered in smaller, more manageable chunks of time. Getting an overview of the system--navigation, functions, file
structure and customization features--is important before you d any more of the project.

1. Look at how to improve work flow. Technology provides a wonderful opportunity to examine the work flow
in the HR department, to ask some hard questions about old policies and procedures, and to ask why and how
the department does what it does. Along the way, knowing how technology can support changes in operations
me vital.

You will need to know the capabilities of your system to fully change the work flow. In streamlining
compensation, for example, you may propose that the line manager have direct access to performance
information and merit increases.

Can the system give the manager access to this information while at the same time guarding your data
files? Another example: Since the applicant-tracking program can produce labels, will your printer handle
postcards so that you can eliminate addressing and affixing labels? Not everyone will have the resources or
time to do such a project, but if you do, your organization can take maximum advantage of the new system.

Human Resource Information Systems

The purpose of this paper is to identify other companies who have faced similar human resources issues in
regards to information technology. Through benchmarking different companies we can learn how other companies
have handled certain human resources issues related to information technology, information systems, new technology,
and data security.

An overall analysis has been completed using research on IBM Europe, Ameriprise Financial, Terasen
Pipelines, Shaw’s Supermarkets, CS Stars LLC, IBM, WORKSource Inc., and Toshiba America Medical
Systems, Inc. This paper also includes eight synopses of companies facing similar issue to those in the reading.

New Technology

With the changing world and constant new technology that is available, managers need to be aware of the
technology that will increase effectiveness in their company. Human resource information systems (HRIS) have
increasingly transformed since it was first introduced at General Electric in the 1950s.

14
 HRIS has gone from a basic process to convert manual information keeping systems into computerized
systems, to the HRIS systems that are used today. Human resource professionals began to see the possibility of new
applications for the computer. The idea was to integrate many of the different human resource functions.

The result was the third generation of the computerized HRIS, a feature-rich, broad-based, self-contained
HRIS. The third generation took systems far beyond being mere data repositories and created tools with which human
resource professionals could do much more (Byars, 2004).

Many companies have seen a need to transform the way Human Resource operations are performed in order to keep
up with new technology and increasing numbers of employees. Terasen Pipelines moved its headquarters from
Vancouver to Calgary to be closer to the oil and realized a major growth in employees.

In the past recording keeping was done on paper and with spreadsheets. Mangers at Terasen realized that
there was a need to change to a more computerized system and looked into different HRIS vendors. By making the
move to a HRIS system, Terasen is able to keep more accurate records as well as better prepare for future growth.
Another company that saw the benefits of keeping up with new technology is WORK Source Inc. To meet the
challenge of handling 100 new employees, WORK Source Inc.

Acquired Web-based technology programs from GHG Corp. like electronic pay stub, electronic
timesheet software, time-off system, and human resource information system (“Tips,” 2006). By adapting
these new programs, WORK Source was able to reduce waste and cost.

The Internet is an increasingly popular way to recruit applicants, research technologies and perform other
essential functions in business. Delivering human resource services online (eHR) supports more efficient collection,
storage, distribution, and exchange of data (Friesen, 2003).

An intranet is a type of network used by companies to share information to people within the organization.
An intranet connects people to people and people to information and knowledge within the organization; it serves as
an “information hub” for the entire organization. Most organizations set up intranets primarily for employees, but they
can extend to business partners and even customers with appropriate security clearance (Byars & Rue, 2004).

Applications of HRIS

The efficiency of HRIS, the systems are able to produce more effective and faster outcomes than can be done
on paper. Some of the many applications of HRIS are: Clerical applications, applicant search expenditures, risk
management, training management, training experiences, financial planning, turnover analysis, succession planning,
flexible-benefits administration, compliance with government regulations, attendance reporting and analysis, human
resource planning, accident reporting and prevention and strategic planning. With the many different applications of
HRIS, it is difficult to understand how the programs benefit companies without looking at companies that have
already benefited from such programs.

One such company is IBM. IBM has a paperless online enrollment plan for all of its employees. Not only has the
online enrollment saved the company 1.2 million per year on printing and mailing costs, the employees enjoy working
with the online plan. "Since we began offering online enrollment, we've learned that employees want web access,"
Donnelly [Senior Communications Specialist] says, so they can log on at home rather than through the company
intranet.

So the company has been working to put in place a web-based enrollment system that employees and retirees
can access from anywhere (Huering, 2003). By utilizing the flexible-benefits application HRIS has to offer, IBM was
able to cut costs and give employees the freedom to discover their benefits on their own time and pace.

Another company that has taken advantage of HRIS applications is Shaw’s Supermarkets. In order for Shaw’s
to better manage its workforce, the company decided it was time to centralize the HR operations. After looking at
different options, Shaw’s decided to implement an Employee Self Service (ESS) system.

The use of self-service applications creates a positive situation for HR. ESS gives HR more time to focus on
strategic issues, such as workforce management, succession planning, and compensation management, while at the
15
same time improving service to employees and managers, and ensuring that their data is accurate. With this solution,
employees have online access to forms, training material, benefits information and other payroll related information
(Koven, 2002).

By giving employees access to their personal information and the ability to update or change their information
as needed, HR was given more time to focus on other issues. Understanding the different applications HRIS has to
offer will give companies the chance to increase employee efficiency and reduce costs.

Measuring the Effectiveness of HRIS

The evaluation should determine whether or not the HRIS has performed up to its expectations and if the HRIS is
being used to its full advantage (Byars & Rue, 2004). One of the most significant challenges faced by public personnel
executives today is measuring the performance of their human resources information system (HRIS) In order to justify
the value-added contribution of the HRIS to accomplishing the organization's mission (Hagood & Friedman, 2002).

Implementing an HRIS program may seem a necessary step for a company, but unless it will be an effective
tool for HR operations, it will not help increase efficiency and may hinder it instead.

One company that implemented a HRIS system is Toshiba America Medical Systems, Inc. (TAMS). TAMS put all
employee benefits information online and created an open enrollment option when TAMS changed healthcare
providers.

Almost immediately upon rolling out the UltiPro portal [new HRIS technology] to employees, TAMS began
seeing improvements, with an estimated 70% increase in open enrollment efficiency (Wojcik, 2004). By determining
the efficiency of the new program, TAMS was able to realize the benefits of the new HRIS system.

Security of HRIS

The privacy of employee information has become a major issue in recent years. With identity theft becoming a
common problem, employees are becoming more sensitive about who sees their personal information, and the security
it is kept in. By making sure employee information that is kept in the HRIS is relevant to the company and making
sure there is limited access (password protection) to such information, companies can make its employees more secure
with the safety of their information.

Whether electronic or paper, employee files deserve to be treated with great care. Establishing security and
end-user privileges calls for a balance of incorporating, HR policy, system knowledge and day-to-day operations
(O’Connell, 1994).

One company that faced a major security issue was CS Stars, LLC. CS Stars lost track of one of its computers
that contained personal information that included names, addresses and social security numbers of workers
compensation benefits. The bigger problem was that CS Stars failed to notify the affected consumers and employees
about the missing computer.

Though the computer was retrieved and no information seemed to have been harmed, many employees lost
their sense of security with the company. New York's Information Security Breach and Notification Law, effective in
December 2005, requires businesses that maintain computerized data which includes private information to notify the
owner of the information of any breach of the security of the system immediately following discovery, if the private
information was, or is reasonably believed to have been, acquired by a person without valid authorization (Cadrain,
2007).

Another company that experienced a breach in security is Ameriprise Financial. In late 2005, a computer that
contained personal information on clients and employees was stolen. Because many of the employees at Ameriprise
take their computers between work and home, the company determined there was a need to put more security into
those computers.

Ameriprise made sure all employees had the new security suite installed on their computers. By responding
quickly to the need for more security, Ameriprise made sure all information is being kept secure. Making sure
16
employees information is kept as secure as possible there will be more trust in the company and the HR employees
working with that information.

Conclusion

IBM, Terasen Pipeline, CS Stars LCC, and Toshiba America Medical Systems, Inc. are good examples of companies
facing issues similar to human resources information technology and human resources information systems. All of
these companies know the importance of new technology, human resources information systems, and data security.
The remainder of this paper provides synopses of more companies facing human resources issues, how the company
responded to the issues, and the outcomes of the company’s responses.

Selection System including Induction

Performance and Potential Appraisal

MODERN METHODS OF PEFORMANCE APPRAISL :

ASSESSMENT CENTRES -
An assessment centre typically involves the use of methods like social/informal events, tests and exercises,
assignments being given to a group of employees to assess their competencies to take higher responsibilities in the
future. Generally, employees are given an assignment similar to the job they would be expected to perform if
promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated
on job related characteristics.

The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability,
planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to
determine the training and development needs of the targeted employees.

BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic
rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of
behavioral statements describing important job performance qualities as good or bad (for e.g. the qualities like inter
personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical
incidents.

In this method, an employee’s actual job behavior is judged against the desired behavior by recording and
comparing the behavior with BARS. Developing and practicing BARS requires expert knowledge.

COST ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource accounting method tries to find
the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is
judged in terms of cost and contribution of the employees.
The cost of employees include all the expenses incurred on them like their compensation, recruitment and
selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary
terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the
contribution of the employees should be greater than the cost incurred on them.

360 DEGREE PERFORMANCE APPRAISAL

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the
feedback about the employees’ performance comes from all the sources that come in contact with the employee on his
job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team
members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable
insights and information or feedback regarding the "on-the-job" performance of the employee.

360 degree appraisal has four integral components:

1. Self appraisal
17
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.

Self-appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and
judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree performance appraisal
where the employees’ responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating
abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct
feedback given by peers can help to find employees’ abilities to work in a team, co-operation and sensitivity towards
others.

Self-assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance
appraisal have high employee involvement and also have the strongest impact on behavior and performance. It
provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible
performance appraisal methods.
360 degree performance appraisal is also a powerful developmental tool because when conducted at regular
intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. A 360 degree
appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles.
This technique is being effectively used across the globe for performance appraisals. Some of the organizations
following it are Wipro, Infosys, and Reliance Industries etc.

MANAGEMENT BY OBJECTIVES
The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in 1954. It can be
defined as a process whereby the employees and the superiors come together to identify common goals, the employees
set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and
contribution and deciding the course of action to be followed

The essence of MBO is participative goal setting, choosing course of actions and decision making. An
important part of the MBO is the measurement and the comparison of the employee’s actual performance with the
standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the
course of action to be followed by them, they are more likely to fulfill their responsibilities.

18
TRADITIONAL METHODS OF PERFORMANCE APPRAISAL

ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as "Free Form method" involves a description of the
performance of an employee by his superior. The description is an evaluation of the performance of any individual
based on the facts and often includes examples and evidences to support the information. A major drawback of the
method is the inseparability of the bias of the evaluator.

STRAIGHT RANKING METHOD

This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks
the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a
comparative evaluation.

PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this method compares each employee with
all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees
are given the final rankings.

CRITICAL INCIDENTS METHODS

In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and
how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this
method is that the supervisor has to note down the critical incidents and the employee behavior as and when they
occur.

FIELD REVIEW

In this method, a senior member of the HR department or a training officer discusses and interviews the
supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time
consuming method. But this method helps to reduce the superiors’ personal bias.

CHECKLIST METHOD

The rater is given a checklist of the descriptions of the behavior of the employees on job. The checklist contains a list
of statements on the basis of which the rater describes the on the job performance of the employees.

GRAPHIC RATING SCALE

19
 In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different
degrees of a particular trait. The factors taken into consideration include both the personal characteristics and
characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be
judged on the range of average, above average, outstanding or unsatisfactory.

FORCED DISTRIBUTION

To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in
some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the
categories on his own discretion.

CONFEDENTIAL REPORT
It is mostly used in government organizations. It is a descriptive report prepared, generally at the end of every
year, by the employee’s immediate superior. The report highlights the strengths and weaknesses of the subordinate.
The report is not databased.

The impressions of the superior about the subordinate are merely recorded there. It does not offer any
feedback to the appraise. The appraise is not very sure about why his ratings have fallen despite his best efforts, why
others are rated high when compared to him, how to rectify his mistakes, if any; on what basis he is going to be
evaluated next year, etc.

Since the report is generally not made public and hence no feedback is available, the subjective analysis of the
superior is likely to be hotly contested. In recent years, due to pressure from courts and trade unions, the details of a
negative confidential report are given to the appraisee.

FORCED CHOICE METHOD:

This method was developed to eliminate bias and the preponderance of high ratings that might occur in some
organizations. The primary purpose of the forced choice method is to correct the tendency of a rater to give
consistently high or low ratings to all the employees. This method makes use of several sets of pair phrases, two of
which may be positive and two negative and the rate is asked to indicate which of the four phrases is the most and
least descriptive of a particular worker.

Actually, the statement items are grounded in such a way that the rater cannot easily judge which statements
applies to the most effective employee. The following box is a classic illustration of the forced choice items in
organizations.

Coaching and Mentoring;

EMPLOYEE COACHING
DEFINITIONS:

1.) “ Coaching is a process that enables learning and development to occur and thus performance to improve. To
be a successful a coach requires knowledge and understanding of process as well as the variety of styles, skills
and techniques that are appropriate to the context in which the coaching takes place”.
2.) “Coaching is a directive process conducted by a manager to train and orient an employee to the realities of the
workplace and to help the employee remove barriers to optimum work performance”.

OBJECTIVES OF EMPLOYEE COACHING:

The main objectives of coaching are,

 To provide a culturally sensitive and non-judgmental service in a way, this is responsive to the needs of
employees and recognizes their individuality.
 To assist employees in the development of their skills (creative, personal, social, spiritual), which will enable
them to achieve their full potential.
 To explore variety of methods for supporting employees in relation in effective performance of work.
 To continue monitoring and improving the individual’s effectiveness on the job.

20
  To support and encourage employees to regularly update their knowledge and skills through continuous
professional development , attendance at training events and networking with their counterparts in other
organizations.
 To provide opportunities to employees to explore their situation in life, for example, to explore their attitudes ,
wishes, values, strengths, impediments, culture and social circumstances.

Managers may use a variety of coaching approaches as needed to address the specific nature of each problem in a
professionally and constructive manner. The goal is to identify and resolve problems as early as possible through
timely and effective partnership with employees.

TYPES OF EMPLOYEE COACHING:

Coaching is given to employees for addressing a number of professional developmental issues such as career
development, performance improvement, skill and competencies development, improving personal effectiveness. The
types are,

 PERFORMANCE COACHING:
Many employees will seek coaching for performance enhancement rather than the rectification of a
performance issue. Coaching has been shown as the highly successful intervention in such cases. When an
organization pays premium for development of it human resources, performance is usually the key payback they are
looking for. Even if an executive or manager receives support in balancing work and home life, it will be with the aim
of increasing their effectiveness and productivity at work and not for more altruistic reasons.

Coaching derives its theoretical underpinnings and models from business and general management approaches.

 SKILLS COACHING:
A skill coaching has some commonalities with one-one-training. Skills coaching combine a holistic approach to
personal development with the ability to focus on the core skills and competencies employees needs to perform in
their role. Skills coaching must be provided to highly experienced and competent personnel.

Job roles are changing at an ever-increasing rate. Traditional training programmes are often too inflexible or
generic to deal with these fast moving requirements. In these instances one-to-one skills coaching allows a flexible,
adapting ‘just-in-time” approach to skills and competencies development.

It is also possible to apply skills coaching in “ live” environments rather than taking people away from the job
into a “ classroom” where it is less easy to simulate the job environment.

Skills coaching programmes are tailored specifically to the individual, their knowledge, experience, and
maturity and ambitious and generally focused on achieving a number of objectives for both the individual and
organization.

One –to-one skills training is not the same as the “ on the job training”. What differentiates it is that like any good
personal or professional development intervention is based on an assessment of need in relation to the job-role,
delivered in a structured manner, and generates measurable learning and performance outcomes. This form of skills
training is likely to focus purely on skills required to perform the job function even though it may adopt a facilitative
coaching approach instead of telling or directive style.

 PERSONAL COACHING:
Personal or life coaching is growing significantly in industry today. Personal coaches may work face- to- face but
email and telephone based relationships are also very common. These coaches operate in a highly supportive roles to
those who wish to make some form of significant change happen in their lives.

Coaches offer supportive and motivating environment to explore what the employee’s want in life and how they
might achieve their aspirations and fulfill their needs. By assisting in committing to action and by being a sound
boarding to their experiences, coaching allows the individual the personal space and support they need to grow and
develop. The coach’s key role is often is assisting in maintaining the motivation and commitment needed to achieve
their goals.

21
EMPLOYEE COACHING PROCESS:

The steps of employee coaching process are as follows,

 Preparing the learner

 Demonstrating the operation
 Creating a positive atmosphere
 Inducing learner to perform the operation
 Follow up.

1. PREPARING THE LEARNER:

Barriers to effective coaching include the learner’s fear of change or of appearing incompetent. The
learner might be defensive. The manager can help the learner to relax by empathizing with him. Then he can
find out what the learner knows already. This way, the manager/coach can proceed from the familiar and
unfamiliar.

2. DEMONSTRATING THE OPERATION:

Manager should explain to the learner exactly what is being done during a demonstration, moving from
the simple to complex. He must allow the learner the opportunity to ask questions. Explaining the relationship
between what the learners is doing and the overall operation is vital for the success of the employee coaching.

3. CREATING A POSITIVE ATMOSPHERE:

Manager should be patient with the learner and give positive reinforcement to the learner. This will help
in creating conducive environment for learning.

4. INDUCING THE LEARNER TO PERFORM THE OPERATION:

Manager should encourage and facilitate the active participation of the learner. Active participation is
essential for instilling long- term learning.

5. FOLLOW UP:
Evaluate learning is crucial to the success of the overall coaching. Manager should check upon the
learner’s progress to demonstrate his availability to answer questions and to discover and new problems.

EFFECTIVE COACHING TECHNIQUES:

Effective coaching is key to organizational excellence through developing employee capabilities and potentialities.
Effective coaching techniques involve,
CREATING A COACHING CONTEXT:
The purpose of undertaking coaching must be identified. This will help the coach to define his purpose in the coaching
role. Based on coaching role. Parameters for improvement will be fixed.
ACTIVELY LISTENING TO THE LEARNER:
Coach must limit interruptions from others and from himself to facilitate proper coaching. He must understand issues
and/ or problems and reflect back to the learner/ employee what he has heard.
ASKING QUESTIONS:
Coach must view the goal of the interaction as helping the learner/employee to find the answers that works best for
him. He should not give advice but should ask questions that explore assumptions.
GIVING USEFUL FEEDBACK:
Coach should encourage the employee to identify his difficulties to overcome. Coach can give his input in order to
clarify what needs to be done.
ELEMENTS OF EFFECTIVE COACHING:

The goal of coaching is to work with the employee to solve the performance/ job related problems and improve
the work of the employee, the team, and the department. There are six main steps,

 Showing confidence in the employee’s ability and willingness to solve the problems and helping him to solve
the problem.
 Describing the performance problem. Focus should be on the problem or behavior that needs improvement not
the person. Asking for the employee’s view of the situation helps a lot.

22
 Determining if the issue exists that limit’s the employee’s ability to perform the task or accomplish the
objectives. Four common barriers are time, training, tools and temperament.
 Discussing potential solutions to the problem or improvement actions to take.
 Agreeing on a written action plan that lists what the employee, the manager and possibly the HRD
professional, will do in order to correct the problem or improve the situation.
 Setting a date and time for follow up. If a critical feedback is needed, so the manager knows how the
employee is progressing on the plan.
PRINCIPLES OF EMPLOYEE COACHING:

For effective employee coaching, certain principles are needed and they are,

1. PRINCIPLE OF COMMUNICATION:
 For effective employee coaching, the communication between coach(Manager)
 And learner(employee) should be strengthened. Coaching is an art and science of
 Effective communication.It is the fundamental basis of employee coaching.
 Coaching is meant to help the employee in problem identification and resolution.
 Active listening on the part of the Manager is essential.
2. PRINCIPLES OF SPECIFIC OBJECTIVES:

Coaching is given to employees with certain pre-determined objectives. Therefore, Specific objectives must
be set before embarking on employee coaching. Such Objectives could be to improve performance, develop
skills and competencies and Improve personal effctiveness. Coaching must help the employee(s) to attain the
required objectives.

3. PRINCIPLES OF MOTIVATION

Coaching should motivate employee(s0 to build commitment to action plan to solve His problem/improve
deficiency. Unless an employee is committed to the determined course of action for improvement, coaching will not
be effective. Manager Must use reinforcement techniques to shape appropriate behavior in the

Employee by involving the employee in problem solving process.

4. PRINCIPLE OF SELF-ESTEEM.

Coaching should maintain and increase the employee’s self-esteem in order to Come to the desired level of
expectations. While coaching, Manager should not Hurt the self-worth of the employee and should concentrate on
the problems being faced by the employee with the purpose of solving it. Coach’s focus should be on behavior,
not personality.

5. PRINCIPLE OF SUPPORT.

Coaching is a process of providing support to an employee to face and surmount the challenges posed by certain
problems. Supporting employees to improve performance skills and competencies etc., results in supporting the
organisation’s Mission and objectives in the long term.

Hence employee coaching consists of ongoing, sometimes spontaneous meetings between Managers and their
employees to discuss the employee’s overall career Goal and development.

Mentoring

The word ‘Mentor’ comes from ancient Greek mythology where Odysseus, King of Ithaca, asks Mentor to act as his
son’s guardian while he is away he is away at the battle of Troy. Mentor acted as role model, teacher, adviser,
counselor and guide for the son and prepared him for his leadership roles in the future.

Mentoring is a dynamic and reciprocal relationship in a work environment between an advanced career
incumbent (mentor) and a beginner (mentee) aimed at promoting the career development of both.

Thus, mentor is someone who develop another person through tutoring, coaching, and guidance.

Characteristics of Mentoring:
1. Mentoring requires a high degree of mutual trust between the mentor and mentee.

23
2. Mentor and mentee have confidence and each other and maintain confidentiality in the issues and matters,
which comes to the knowledge of mentee during the course of mentoring.
3. Effective communication is key to success of mentoring programme.
4. Availability of mentor to help mentee is necessary for the success of mentoring.
5. Mentoring should have predictability; otherwise it will become an uncertain event.
6. Mentor and mentee must have high level of mutual respect. Without the elements of respect mentoring is
doomed.
7. Self-esteem an confidence is necessary for effective mentoring.
8. Mentoring is essentially a systematic process of partnership building.

Characteristics of Successful Mentoring:

1. Obtaining commitment based on sound business principles.

2. Clearly identifying the need of the mentoring in general and that of mentee in particular.
3. Mentoring programmes must be based on solid business reasons.
4. Benefits should be highlighted.
5. Get buy-in from senior management is essential to starting, nurturing and sustaining mentoring in an
organization.
6. Obtaining visible support and involvement from top management is a pre-requisite of mentoring.
7. Proper identification of mentors is crucial factor.
8. Determination of who will participate as mentors has significant impact on mentoring progrmme quality and
result.
9. Encouraging management strongly to establish mentoring programme for organizational success is a key
attribute of HRD mangers.
10. Good mentors are commitment to growth, has ability to listen, exhibit trustworthiness and asses objectivity.
11. Advertisement of the opportunity for mentoring helps in getting potential mentors and screening good
mentors.
12. Informing employees of potential benefits of mentoring contributes to its success.

Correct Matching of Mentors and Mentees

Mentoring being a process of relationship management depends primarily on alignment of personal attributes of
mentors and mentees. Therefore, a correct matching of mentors and mentees is of utmost importance and contributes
significantly to the success of any mentoring programme.
Matching of mentors and mentees involves: Personalities of mentors and mentees must be compatible so as to avoid
potential personality clashes.
There should be a high probability that mentors and mentees would work together and that the relationship will be
productive.
Voluntary participation and self-initiated pairing of mentors and mentees must be encouraged.
Them the above discussions, we may conclude the relationship between mentors and mentees as depicted below.
Principles of Mentoring

The Effectiveness of a mentoring relationship is based upon the following principles:

1. Reciprocal Exchange: Each participant is responsible for the success of the relationship. Therefore, it is
highly desirable for both to discuss and clarify their respective roles and their associated responsibilities.
2. Mutual Trust and Respect: Since it is a relationship of assistance and learning, confidentiality is essential
and must be respected; without it, the relationship could be superficial and unsuccessful.
3. Mutually Beneficial: To both mentors and mentees is one of the main motivating factors in a mentoring
relationship. Mentoring allows for personal, professional, and organizational development. However, it should be
noted that involvement in a mentoring relationship does not guarantee, and may not lead to a promotion.
4. Dynamic in Nature: Mentoring describes the relationship. As the organizational needs and saturations
continuously change, so do the mentoring relationships. Mentoring is dynamic and the content of the relationship (i.e.
intensity, subjects for discussion, objectives and so forth) changes. Therefore, relationships are created gradually to
adjust over time.
5. Open and Effective Communication: Open and effective communication is vital. Everyone in the
organization, whether they participate in the mentoring programme or not, needs to know what the mentoring
programme involves, how it works, and why it is being implemented.
24
6. Confidentiality: Mentoring facilitates trust in the partnership. It supports open communication and sharing of
experiences and personal goals.
Dynamics of Mentoring: Mentoring is a key function and provides psychological support to a mentee. It
serves as a career enhancement tool. It places heavy responsibility on mentors as well on mentees. The key dynamics
of mentoring is described below:

Mentor should be:

1. people oriented: A mentor should be genuinely interested in people and must have the desire to help others to
develop and grow. The outcome of the relationship is based upon the goals set by the mentees and their commitment
to their own growth and development.
2. Goal -oriented: In order to have a successful and effective mentoring relationship the mentees must know
what they aim to take away from the mentoring relationship. Whether this is clearly defined at the start to the
relationship or development with the mentor, a clear goal is essential to making the most out of the mentoring
opportunity.
3. Open to new ideas; A mentee is someone who is willing to learn and is open to new ideas and perspectives
form his mentor. A mentee is enthusiastic and motivated to learning new skills.
4. Shares personal goals: Willing to share self-assessment of developmental needs and personal goals through
personal experiences.
5. Receptive to feedback: A mentee must be open and receptive to constructive criticism from the mentor in
order to benefit from their viewpoint and experience.
Qualities of a Good Mentor and Mente/Role and Responsibilities of Mentor and Mentee

A good mentor should be:

1. A good Communicator: An effective communicator is one who is an active and empathetic listener. A
mentor should be able to effectively express how things “really work” in the organization.
2. Open-minded: To encourage free exchange of new ideas and methods - a good mentor is willing to learn
from the mentee too.
3. Shares personal experience and knowledge: The mentor must have a clear understanding of own skills and
wisdom and shortcomings. A willingness to share personal experiences helps the mentor lead by example and
generates a relationship based on trust.
4. Offers feedback and support: A mentor should be able to offer objective feedback and constructive criticism
to support the mentees in solving their own dilemmas.
5. Committed to the development of people and the organization: Anyone who has the experience and desire
to encourage and nurture less-experienced employees is a good candidate as a mentor.
6. Knowledge of the organizational mission and structure: Mentors must be well aware of the mission,
objectives and structure of the organization to provide proper direction and guidance to the mentoring programme.
7. Good listener: A good mentor must be an active listener. Listening is the heart of the interactive
communication between the mentors and mentees.
8. Excellent communication skills: Communication skills of the mentors are crucial for the success of
mentoring. A good mentor must have excellent communication skills in order to explain, understand and guide the
mentees.
9. Builds and maintains professional networks and relationships: Mentors must maintain good relationship
and professional network to provide appropriate resources and information to the mentees.
10. Willingness to share failures and successes: Mentors must have the willingness and courage to accept
accountability for the success as well as failure of mentoring programme.
11. Willingness to spend time mentoring: Mentors must have good time management skills so that they have
appropriate time for the learning, development, monitoring and feedback activities of the mentees.
12. Demonstrates honesty and integrity: A high degree of honesty and integrity is essential for the success of
mentoring relationship.
13. Secure in position: Mentors must have credibility within the organization so that peer/colleagues and all
other in the organization respect. A mentor should appreciate a mentee’s developing strengths and abilities, without
viewing these accomplishments as threat.
14. Good motivator: A mentor needs to be able to motivate mentees through encouraging feedback and
challenging work assignments. He needs to stretch the mentee’s potential, setting new limits for what mentee can do.
15. Achiever: Mentors should be achievers -who sets career goals, continually evaluates goals, and strives to
reach them. A good mentor is usually one who takes on more responsibility than is required, volunteers for more
25
activities, and tends to climb the proverbial career ladder at a quick pace. A mentor attempts to inspire a mentee with
the same drive for achievement.
HR Issues
1. Recruitment is conducted under time pressure and requires high performance.
2. Human capital (Knowing one’s job) and social capital (Knowing each other) become inextricably linked.
3. The formation of some stability in social relationship is not very much required.
4. Work place is variable.
5. Idleness is shown in terms of learning by watching what others do. Master-apprentice relationship and craft-
based learning techniques become important.
6. Job status and project feedback is very short. Hence virtual organization requires a heavy investment to
create systems and staffing structures.
BPO
Business process outstanding has gained momentum starting from IT sector and software. In other businesses
also outsourcing is resorted to, whereby part or major work to be entrusted to different companies, sometimes
even to companies in different countries. Sometimes it is cheaper to hire service work from outside and this leads
to reduction in labour cost. Call centers have developed as a part of outsourcing.
HR aspects in outsourcing
1. Selection of skilled person
2. Sociability
3. Communication skill
4. Adaptability
5. Culture adjustment
6. Motivation

Technology has become the hallmark of the modern organizations. As such modern organizations have
become the technology driven organizations. The explosive growth of information technology linked to the
internet has ushered in many changes throughout the organization. One of the major changes led by IT is that it
has hastened, what experts call “fall of hierarchy.” Managers depend less and less on yesterday’s “stick-to-the-
chain of command approach” to their organizing function. This is so because earlier it used to be, if one wanted
information, one had to go up, over and down through the organization. Now just one tap would do. This is
meant by the breakdown of hierarchy.
MNCS
Globalization has given genesis to the Multinational Corporations (MNCs). The MNCs are characterized by their
cultural diversities, intensified competition, and variations in business practices. The bottom line is that the
growing integration of the world economy into a single, huge market place is increasing the intensity of
competition in a wide range of manufacturing and service industries. Given these conditions, from tapping the
global labour force to formulating selection, training and compensation policies for expatriate employees are
major challenges for HRM in the organizations or international organizations separately.
Organizational restructuring is used to make the organization competitive. From this point of view,
mergers and acquisitions of firms have become common forms of restructuring to ensure organizational
competitiveness. The mega mergers in the banking, telecommunications and petroleum companies have been
visible in our country. Downsizing is yet another form of restructuring. As a part of the organizational changes,
many organizations have “right sized” themselves by various ways like eliminating layers of managers, closing
facilities, merging with other organizations, or out-placing workers. There is also a practice to flatten
organizations by removing several layers of management and to improve productivity, quality and service while
also reducing costs. Whatever is the form of restructuring, jobs are redesigned and people get affected. One of
the challenges that HRM faces with organizational restructuring is dealing with human consequences of change.
HRM activities are widening. Particularly the world scenario of globalization along with modern
technological explosion and fastness of information technology have made lot of change both in selection and
needed skill of personnel.

26
HRM has to give coaching. Coaching need not be construed as training. Coaching is needed to employees to deal
with and to adjust the culture and requirements of people of different countries. Mentoring is standing a model
organization should develop leadership qualities, tolerance and adjustment to cross-country cultures.

UNIT-III:
PERSONNEL DEVELOPMENT AND RETIREMENT: Training and Development – Methods, Design &
Evaluation of T & D Programmes; Career Development – Promotions and Transfers – Personnel Empowerment
including Delegation – Retirement and Other Separation Processes.
Process of training

Training process involves,

i. Planning training.
ii. Designing training.
iii. Evaluating training.

Planning training:

o Planning is the process of establishing the sequence and relationship of a series of operations prior to
commencing work.
o Training is the process of identifying, assuring, and developing, through planned activities, the
knowledge, skills, and abilities that employees need to help them perform their current and future job
responsibilities in organizations to the greatest extent possible.
o Training planning is a strategy for employees to develop workplace expertise both general and
specific.
o Training must be planned so that the priority needs of the business can be met, whilst making the best
possible use of organizational resources.
o Planning of training is essential if both short and long term objectives of the organization are to be
achieved at the right time. Planning training is a critical task, which involves the following steps:

Setting strategic direction:

Setting strategic direction means the assessment of current competency of human resources and comparing
it with the desired competency levels based on the strategic business plan of the organization to identify gaps
in competency.

Training and Development – Methods:

The forms and types of employee training methods are inter-related. It is difficult, if not impossible, to say which of
the methods or combination of methods is more useful than the others. In fact, methods are multifaceted in scope and
dimension, and each is suitable for a particular situation.

Classification of Training Methods:

(a) On the job
(b) Vestibule
(c) Demonstration and Examples
(d) Simulation
(e) Apprenticeship
(f) Classroom Methods
 Lectures
 Conference
 Case Study
 Role-Playing
 Programmed Instruction
(g) Other Training Methods
 Associations
 Audiovisual Aids

27
On-the-job-training (OJT)

Every employee from clerk to company president gets some “on-the-job-training,” when he joins a firm.

According to William Tracly, “the most commaon, the most widely used and accepted, and the most necessary
methods of training employees in the skills essential for acceptable for job performance.”

Under this technique, an employee is placed in a new job and is told how it may be performed.

It is mostly given for unskilled and semi-skilled jobs-clerical and sales jobs.

There are the varieties of OJT methods, such as “coaching” or “understudy”

Merits:

 The trainee learns on the actual equipment in use and in the true environment of his job.
 It is highly economical since no additional personnel or facilities are required for training.
 The trainee learns the rules, regulations procedure by observing their day-to-day applications.
Demerits:

 The inability of the inexperienced employee to impart skills to the trainee

 The breakdown of the job for the purpose of instruction
 The lack of motivation on the part of trainee to receive training

Vestibule Training (Or Training-centre training)

This method attempts to duplicate on-the-job situations in a company. This technique enables the trainee to
concentrate on learning the new skills rather than on performing an actual jobs. In other words, it is geared to job
duties.
Theoretical training is given in the classroom, while the practical work is conducted in the production line
Training is given in the form of lectures, conference, role-playing, case study and discussion.
Merits:

 As training is given in a separate room, distractions are minimized.

 A trained instructor, who knows how to teach, can be effectively utilized.
 Correct method can be taught without interrupting production.
 Permits the trainer to practice without the fear of supervisors’/co-workers’ observation and their possible
ridicule.
Demerits:

 The splitting of responsibilities leads to organizational problems.

 An additional investment in equipment is necessary, though the cost may be reduced by getting some
productive work done by trainees while in the school.
 The training situation is somewhat artificial.
Demonstration and Examples ( or Learning By seeking):

 The trainer describe and display something, as when he teaches an employee how to do something by actually
performing the activity himself and by going through a step-by-step explanation of “why” and “what” he is
doing.
 It is very effective in teaching because it is much easier to show a person how to do a job than to tell him or
ask him to gather instruction from the reading materials.
 Often used in combination with lectures, pictures, text materials, discussions, etc.
 It is particularly effective in the training for the acquisition of skills.
Simulation:

 It is a technique which duplicates, as nearly as possible, the actual conditions encountered on a job.
 Vestibules training method or the business-game method are examples of business simulations.
 It is most widely used in the aeronautical industry.
 Trainee interest and employee motivation are both high in simulation exercise.
28
  It is one of the very expensive techniques.
Apprenticeship:

 For training in crafts , trades and in technical areas, apprenticeship training is the oldest and most commonly
used method.

 The field in which apprenticeship training is offered are numerous and range from the job of a draughtsman, a
machinist, a printer, a tool-maker, a pattern designer, a mechanic, carpenters, weavers, filters, jewelers,
diesinkers, engravers, and electricians.
Merits:

 A skilled workforce is maintained

 Immediate returns can be expected from training
 The workmanship is good
 The hiring cost is lower because of reduced turnover and lower production costs.
 The loyalty for employees is increased and opportunities for growth are frequent.
Classroom or Off-the-job Methods:

“Off-the-job training” simply means that training is not a part of everyday job activity. The actual location
may be in the company classroom or in the places which are owned by the company or in universities or associations
which have no connection with the company.

These methods consist of:

Lectures:
 Also called class room instruction.
 Used for very large group which are to be trained within a short time, thus reducing the cost per trainee.
 It is regarded as one of the most simple ways of imparting knowledge to the trainees, especially when
facts, concepts, or principles, attitudes, theories and problem solving abilities are to teach.
 Conference:
In this method, the participating individuals ‘conference to discuss points of common interest
to each other. It is formal meeting conducted in accordance with an organized plan.

 Group Discussions:
Also called seminar and conducted in many ways:
 It may be based on a paper prepared by one or more trainees
 It may be based on the statement made by the person in charge of the seminar
 The person in charge of the seminar distributes in advance the materials to be analyzed.
 Valuable working materials may be provided to the trainees by actual files.

 Case Studies:
The case study is based upon the belief that managerial competence can best be attained through the
study, contemplation, and discussion of concrete cases.

 Role-Playing:
A method of human interation which involves realistic behavior in the imaginary situations. It primarily
involves employee-employer relationships.

 Programmed Instruction:
Also called teaching by the machine method. It involves a sequence of steps which are often set up
through the central panel of an electronic computer as guides in the performance of a desired operations
or series of operations.

 Laboratory training:
1. Sensitivity Training:
 It is an experimental approach to training.
 It is a group training method that uses incentive participants and give immediate
feedback for self analysis and change.
2. T-group:
29
 It is considered necessary that to change behavior imparting necessary skills is required. A
change in variety of skills and experiences like self awareness, interpersonal relationships, team
work, group, organizational process and intergroup conflict resolution.

JOB EVELUATION

Job evaluation is a systematic way of determining the value of a job in relation to other job in
an organization. It tries to make a systematic comparison between jobs to access their relative worth for the purpose of
establishing a rational pay structure.

FEATURES

The purpose of job evaluation is to produce a defensive ranking of jobs on which a rartinoal and acceptable pay
structure can be built. Its features are:

 It tries to assess jobs, not people

 The standards of job evaluation are relative not absolute.
 The basic information on which job evaluation are made is obtained from job analysis.
 Job evaluation are carried out by groups, not by individual.
 Some degree of subjectivity is always present in job evaluation.
 It does not fix pay scale, but merely provides a basis for evaluation a rational wage structure.
PROCESS

1. Gaining acceptance:
before undertaking job evaluation top management must explain the aim and uses of the programme to the
employees and union.

2. creating job evaluation committee:

it’s not possible for a single person to evaluate all the key jobs in an organization. Usually job evaluation
committee consisting of experienced employees union representation and HR experts in created to set the balls
rolling.

3. finding the job to be evaluated:

every job need not be evaluated. This may be to o taxing and costly. Certain key jobs in each department may
be identified. While picking up jobs, care must be taken to ensure that they represents the type of work performed
in the department.

4. analyzing and preparing job evaluation:

this requires the preparation of a job description and also an analysis of a job need for successful performance.

5. selecting the method of evaluation:

the most important method of evaluating the job must be identified now, keeping the job factors as well as
organizational demands in mind.

6. classifying jobs:
the relative worth of various jobs in an organization may be found out after arranging jobs in order of
imortanceusing criteria such as skill requirements , experience needed under which conditions job is performed,
type of responsibilities should be shouldered, degree of supervision needed, the amount of stress caused by the
job, etc. weights can be assigned to each such factor. When we finally add all the weights , the worth of a job is
determined. The points may be converted into monetary values.

7. installing the programme:

once the evaluation process is over and plan of action is ready, management must explain it to employees and
put it into operations.

8. reviewing periodically:
in the light of changes in environment conditions jobs need to be examined closely. new job description need
to be written and the skills needs of new jobs need to be duly incorporated in the evaluation process. Otherwise ,
employees may feel that all the job relevant factors – based on which their pay has been determined – have not
been evaluated properly.
30
BENEFITS:

1. It tries to link pay with the requirements of the job.

2. It offers a systematic procedure for determining the relative worth of jobs.
3. Jobs are ranked on the basis of rational criteria such as skill, education, experience, responsibilities, hazards,
etc.,
LIMITATIONS:

1. job evaluation is not exactly scientific.

2. the modus operandi of the most of the techniques is difficult to understand, even
for the supervisors.
3. the factors taken by the programme are not exhaustive.

Assignment on human resource management

Design and Evaluation of Training and Development Programs Training Design

The design of training program would have to be based upon the assessment of training needs, the training
calendar, the availability of trainers, various logistic arrangements required for different training programs like
training halls, audiovisual aids, accommodation, travel and hospitality for trainees, the time duration for which
the supervisors agreed to free their nominees for undergoing the training programs and the demographic
characteristics of trainees. The purpose of designing any training is to create within the individual the desire to
learn. Hence the selection of trainers should be based upon their competence in training as well as their
suitability to the target groups.
Even the best of training programs would be useful only if the trainees attend them with willingness and
participate with freedom.
Programs that the trainees are eager to attend, and in which they become enthusiastically involved, are
those in which they are encouraged to present and attempt to solve the problem situations in which they have a
direct interest and in whose solutions they have a personal stake. The pedagogy or method of instruction is to be
decided based on the level of education, maturity, time available and the cost involved. In general, it may be
stated that experiential and participative training would be more effective than merely information-loaded
programs. Rotation of training methods could be carried out in accordance to the span of attention and the stages
in the cycle of learning among the trainees.

When large numbers of people remain to be trained at any given time, then training the trainers would be
of help. They would in turn provide training to an exponentially increasing number of trainees. In order to gain
acceptance from all stakeholders of training, it would be appropriate to begin training at a small level and then
expand its base based on the success demonstrated after each program. Since training is just one component of
Human Resources Development, the organization would have to be urged to make improvements in the other
components like human resource planning, Performance appraisal and aspects of organization like work-flow,
tools and infrastructure, empowerment, reward systems, transparency in communication, career planning and
succession planning, control, confidence, self esteem, team spirit, morale and motivation among employees.

Training Evaluation

Evaluation of training effectiveness is the most critical phase in not only assessing the quality of training
imparted but also to see what future changes in training plan should be made to make it more effective. The
process has both predictive and regulative value. Training evaluation would also provide vital insights into the
existing systems and procedures prevailing in the organization. There is not much of a consensus among
corporate managers on how to determine the value of training. The onus of the training department is to
document its efforts and clearly show that it provides a valuable service to the entire organization.
Training and Development Programs may be evaluated at different levels. Training evaluation
consists of examining various aspects of training immediately after the training is over and judging its
utility to achieve the goals of the organization. While the first may be easy to evaluate, the second poses
complications. Hence it may be advisable to commission comprehensive research studies through which opinions
and judgments on the training processes could be elicited from trainers, supervisors, peer groups, which could
then be cross-tabulated against the responses of trainees. A comprehensive audit of Human Resource
31
Development functions should also include training programs under its purview. Donald Kirkpatrick (1959) has
contributed to the development of a model for training evaluation.
Levels of Evaluation of the Effectiveness of Training
Level 1 - Content Evaluation through Trainees’ Reactions
This is a quick, inexpensive approach to training evaluation. At this level, the trainees are provided with a
feedback form in which questions pertaining to the trainers, relevance of the topics, applicability of the learning
outcomes, usefulness of the study materials, efficacy of the training methods adopted during the program and the
quality of physical environment that prevailed during training are included. The analyses of the responses
indicate how far the trainees are satisfied with the structure, subjects covered and learning processes involved in
the training programs. After each program, the opinions could be fed into a database in order to make
comparisons with the scores of the previous programs.
Level 2 - Learning Evaluation through examination
The pretest-posttest control group design is used as evaluation procedure in this level. This is normally done by
using a test for examining the trainees on their newly acquired knowledge and comparing this score with a pre-
training assessment of trainees on the same topics. The difference between the two scores would be taken as a
measure of the effectiveness of training program. For example, in a training program on awareness on cyber
laws, the post-training assessment should show a certain minimum of increase as compared to the scores
obtained by the same person before attending the training program.
Level 3 - Evaluation of Behavioral outcomes through training
The aim of training is modification of behavior of some kind that might lead to improvement in performance.
Hence any training could be said to be effective if it has resulted in any enduring change in behavior patterns of
the trainees. The behavior assessment would be based on indicators of organizational performance that show the
transfer of learning from training into practical application. Since performance is a function of complex forces
and motives, accurately assessing the effect of training on performance would be difficult.
Level 4 – Attainment of Training and Development Objectives
Training may be assessed based on the extent to which the objectives set before conducting the programs have
been attained after the program. For example, safety training should have resulted in the reduction of number of
accidents and an attitudinal training program focused on attendance should have resulted in reduced absenteeism.
In this regard, the comparison should be made with a corresponding score in the month or year preceding such
training programs. Behavioral outcomes may be evaluated at individual, group or organizational levels.
Level 5 - Evaluation of Return on investments (ROI) on training
This is the ultimate level of assessment of training programs in which the financial gains directly resulted out of a
training program would be validated against the total cost incurred in conducting the program including trainers’
fees, trainees’ paid work time and other related expenditure. Usually the benefits are measured in terms of the
amount saved in the year after the training is completed. However, there are obvious difficulties in calculating
the ROI because it may be difficult to determine how much of the benefits are strictly due to the training
programs.
Methods Used for Evaluation of Training and Development Programs
An organization’s training head may employ several methods of evaluating the existing training programs. Some
of the sources of information that could be obtained before commencing evaluation process are as follows.
Questionnaires and interviews carried out with the trainees after the programs, Tutor’s report on the trainees’
responses to the inputs, Project assignments based on the training inputs and direct observation or reviewing
audiovisual recordings of the proceedings of a training program by the monitoring team, are the most common
methods of evaluating the effectiveness of a training program.
In recent times, benchmarking is also used to evaluate an organization’s training programs by comparing
it with any exemplary training practices achieved by another unit or organization of comparable nature. Several
parameters would have to be kept in mind while analyzing and evaluating the effectiveness of the program. The
extent of support from the top management towards training, the number of trainees covered, the time allotted to
each module, the qualifications of trainers, the extent of participation of the trainees, the budgetary constraints
faced by the organizers of the training program, the opportunity provided by the work atmosphere to implement
the learning that was resulted from the training programs are to be considered while evaluating a training
program.
While systematic and concerted efforts to train employees are vital to an organization’s very existence and
growth, they would not be the sole interventions to assure reliable Personnel Development. Motivation for
participating in training programs and the inter-relationships between different training interventions on a person
32
is determined in part by an employee’s concept of career-life and the organizational initiatives for the Career
Development for each of its employees.

Career Development – Promotions and Transfers

Promotion is the movement of an employee from current job to another that is higher in pay, perquisites,
prestige, privileges, authority and power, wider in jurisdiction and responsibility with a likelihood of increase in
the level a person is occupying presently in the organizational hierarchy. A mere shifting of an employee to a
different job which has better working hours, better office space or more pleasant location would not be called
promotion. A promotion process begins with the screening of a number of possible candidates for promotion and
culminates in the official notification of the elevation of an employee to a higher rank within the establishment.
Promotions could be used as a motivational tool as it brings enhanced working conditions for the promoted
persons. Promotions that merely increase job complexity without any real improvement in jurisdiction could be
called as Pseudo-promotions and are resented by employees. Decisions to promote might be based on 360
Promotion may be based on seniority or merit. Using merit as the sole basis for promotion is subject to criticism
because determining merit criteria often lacks reliability and objectivity. Most organizations try to combine
seniority and merit in a formula called seniority-cum-merit. Under this formula, a certain number of years of
service is taken as the cut-off level initially. Then, if there are more persons than required for promotion in that
level, merit is given consideration. Some organizations are engaged in promotion forecasts that allow them to
identify people with high advancement potential. The high-potential employees are then given special kinds of
developmental experiences.
While filling vacancies in managerial positions, promotion from within an organization is to be preferred
to recruitment from outside because merit-based promotion is generally viewed as a reward for excellent services
rendered by an employee. If seniority were not the sole criterion for promotions, employees at all levels would be
encouraged to show initiative and assume greater responsibility in their work. At the same time, it could be
imprudent to pick up the top performer in any area for a bigger job where the demands are quite different.
Promotions should not be decided upon parameters like college degree, intelligence and popularity of a person.
Not all people would desire to get added burdens and shoulder additional responsibilities. Hence a person’s
willingness is to be considered thoroughly before taking any decisions on promotion.
Performance factors like ability to develop good subordinates, operating with minimum direction and
having a record of accomplishments are found to be extremely helpful characteristics for a person to be eligible
for promotion. Personality characteristics like openness to accept criticism, ability to communicate effectively
and respect for fellow human beings tend to make the person survive after the promotion. However the socio-
environmental factors surrounding employees like their personal life, family unity, superior’s reputation and
promotional prospects and connections with power centres, are also given importance in practice, even though
they are not concerned with the individual’s effort. People desirous of promotion might be adopting many of the
tactics to acquire greater power. Exuding confidence, progressing one step at a time, making one’s activities
central and non-substitutable to the organization, developing expertise, committing the rare and uncommitted
feats, engaging in rational persuasion of others, upward appeals quoting consent of higher ups, pressure tactics
like using demands and threats, image building through attention-seeking activities, regulating information flow
upward and downward, networking with people and other such types of behavior that are political in nature.
If a person is denied promotion or overlooked upon at discussions for promotions, he or she might feel
severely frustrated. The frustration would be particularly high if the candidate has nurtured deep desire for the
promotion and had been sure of reaching it. Frustration would be heightened if the person had taken a lot of
efforts to be eligible for promotion and if the next chance for promotion is remote. Being scheduled for
promotion and getting dropped from the list would lead most people to feel the urge to quit their jobs.
For example, when the Chief Executive Officer (CEO) of a large renowned multinational corporation
reached his retirement stage, the organization had arrived at three names in its shortlist of candidates one of
whom would be chosen to succeed the present CEO. Since the three names were already discussed openly in the
media, they were well known to the public. Before choosing one from the three, the selectors raised the issue of
how they would react if they were not selected as the CEO. All of them replied that it would be a loss of face to
them in that case and hence they would resign and quit the organization. Taking cues from this feedback, the
organization realized that they would have to find three successors to the positions occupied the candidates for
CEO and that an increasing number of successors would have to be found to fit the lower levels.
Awarding promotions are the most significant forms of recognizing superior performance. Therefore, it is
extremely important that promotions be fair and based on merit and untainted by favouritism. Though many
people accept the obligation to avoid racial, sexual, age and religious discrimination in recruitment, very little
33
attention is paid to discrimination against the disadvantaged groups during promotion. Affirmative action is to be
taken to specially train the traditionally marginalized groups to face the challenges of a competitive and
potentially hostile environment. When promotion occurs in the same category like clerical, manual or managerial
groups, within one grade to another, it is called as lateral promotions. When employees are shifted from a lower
category to a higher category, such promotions are called vertical promotion. During times of monetary crisis,
the management can grant promotions without any rise in pay, benefits and allowances. Such promotions are
known as dry promotions and the promoted employees would not be paid the increased wages when they are
promoted.
The merits of promotion are encouragement of efficiency, retention of competent people with an
ambition for vertical growth upwards and increase in productivity. The disadvantages of promotion from internal
sources could be discontentment among other contenders for the same position and scope for lobbying,
bickering, frustration, unhealthy competition and alienation from erstwhile peers and the possibility of
favoritism. Neglect of length of service and loyalty could be the result of promotions not based upon seniority
and they could attract resistance from employee associations and trade unions. Promotion policy should make it
clear whether to promote employees against existing vacancies alone or it is permissible to promote a person
even if there is no real vacancy just for the sake of rewarding a person’s performance.
a. Demotion is the diametric opposite process of promotion. It is a course of action by which an employee is
assigned a downward assignment in the organizational hierarchy to a different job with lesser pay, inferior
designation, lower category, reduced status and responsibility. An organization uses demotion less frequently
than the other aspects of mobility, primarily because of its serious negative implications on the employee’s career
and morale. An employee is likely to accept a demotion rather than lose the job altogether if the employment
opportunities in the job market outside are less.
Every manager is said to rise to his or her level of incompetence. In that case, demotion would be one of
the consequences arising out of an employee’s inability to match the requirements of the present job, or when a
promotion has been made provisionally. Demotion may also occur as a disciplinary measure owing to the acts of
commission of malpractice by the employees. In the context when employee turnover is high and organizational
structures are flattering, demotion could be losing its significance and impact. Demotion would be less frustrating
to an employee if the placement in a particular position had been notified as temporary and revocable.

b. Transfer is reshuffling of human resources from one unit of work place to another. It involves lateral mobility
of employees from one post to another within an organization. Through transfers, people are shifted to a job that
is comparatively equivalent in pay, responsibility and organizational level. Transfers may be voluntarily sought
by employees or may be used as the sole prerogative of the managements. They could be occurring on a mutual
basis between two employees or as a sequence of transfers. Transfers may occur within or outside functions,
departments, units or divisions.

Transfers serve a number of purposes. They may be carried out to enhance efficiency in the utilization of
human resources through the redistribution of work force’s size and strength according to changing needs. A
transfer is said to be a replacement transfer if it is caused due to the displacement of an existing incumbent in a
job. It is called remedial transfer if it is initiated to correct a previous incorrect placement. Transfers might also
be ordered to satisfy the requirements of employee to work under a better superior or to move into a job with
brighter career prospects or be in a more convenient location.
Transfers are also at times used to keep promotion ladders open to keep individuals not having growth
opportunities in their own department, continued to be interested in their work. Some times, transfers are also
effected to stall layoff. Since transfers expose employees to others’ jobs, work can continue even during periods
of emergency such as accidents or strike, when some employees are unavailable to work. An employee may be
transferred because management feels that crucial forms of competence could be put to use in another deserving
place. Thus it becomes an employee assistance measure. Transfer may be a developmental device to provide
more exposure to the employees and make them more versatile. Transfers may at times be necessary to diminish
conflicts between colleagues. Transfers may be used as a disciplinary measure to punish employees indulging in
any acts of misconduct. In this case, they are called penal transfers. Transfers help reducing monotony and
boredom felt by employees and thereby enhance their satisfaction on job and the morale of their groups. They
can also prepare an employee for challenging assignments in the future. The intervening authorities from above
could shift over-dominating employees. Better employer-employee relations and stabilization of changing work
requirements in different departments or locations are the other beneficial outcomes of transfers. On the negative
side, transfers might be viewed as an inconvenience to those who are reluctant to move. Managers might feel that
34
they are unfairly made to move away from their pet projects and supportive superiors. Some employees may feel
it uncomfortable when they have to separate from their affiliates at work and might have to adapt to a more
demanding work schedule. Shifting of experienced hands and minds may affect productivity in the department
from which a person is transferred. Dual career couples might have objections when only one of them is
transferred. Arbitrary and discriminatory transfers can affect the employees’ morale.
In order to make transfers more pleasant and less troublesome, employees must be explained the
circumstances under which the transfer was initiated and the reason for choosing this particular employee for the
transfer. It is also important on the part of the organization to provide appropriate support in the form of facilities
like orientation regarding the new place, days of leave, adequate manpower, allowances and material assistance
to the transferee for packaging luggage, transportation, re-registrations and shifting of families and taking care of
avoiding disruptions in the lives and careers of employees’ spouses. Transfers should be spaced out by years of
gap and should have employee development-orientation.
Transfer opportunities could also be used adeptly to get vital clues into organizational problems. This could be
illustrated with the help of a case described by Akio Morita of Sony Corporation in Japan when he introduced a
scheme by which employees could apply for transfers outside their departments, when there is an internal job
posting. The scheme proved to bring in multiple benefits. People who wanted to move out of Sony could be
retained within the company by this scheme. The scheme had yet another benefit of identifying the departments
from which request for transfer appears in large numbers. Large numbers of these applicants were actually
sending signals of some underlying anomaly like an autocratic or nagging boss. The top management could sense
this problem and sort it out with the heads of these departments and avert large-scale turnover of skilled human
power. The organization also got valuable insights into the needs and aspirations of its employees, and thereafter
began its plan for further human resource planning.
Vacancies arise due to a variety of reasons like growth, diversification, turnover of employees and organizational
restructuring. While training interspersed with transfers and promotions could occur as intermittent or
discontinuous events that serve to provide a plethora of opportunities to experiment, learn and perform in new
ways, they are still not likely to be adequate to maximize employee development. In this regard, there should also
be ongoing efforts from the organizations to enable an employee to become involved actively, contribute his
mettle and help taking the whole firm or even an entire industry to new heights. These continuous efforts may
take forms called as Empowerment and Delegation.
Personnel Empowerment including Delegation

Retirement and Other Separation Processes:

Separation means cessation of service with the organization for one or other reason. the employee may be separated
from the roll of a company as a result of:
1. Resignation
2. Discharge and dismissal
3. Suspension and retrenchment; and
4. Layoff

Resignation

Resignations may be put in voluntarily by the employees on grounds of health physical disability, better opportunities
elsewhere, or maladjustment with company policy and or for reasons of marriage or they may be compulsory when an
employee is asked to put in his resignation if he wants to be avoid termination of his services on the ground of gross
negligence of duty on his part, or some serious charge against him.

Discharge:

A discharge involves permanent separation of an employee from the payroll for violation of company rules or for
inadequate performance.
A discharge becomes necessary:
1. When the volume of business does not justify the continuing employment of the persons involved;
2. When a person fails to work according to the requirement s of the job either because of incapacity or because he
has deliberately showed on work or because there Is no suitable where he can transferred.
3. When an individual forfeits his right to a job because of his violation of a basic policy often involving the safety of
others the morale and discipline of a group.

35
Causes of discharge:
A discharge seldom arises from a single impulsive act. Many causes may account for it. Some of these are:

(A) Frequent causes: inefficiency, dishonesty, drunkenness, carelessness or indifference, violation of rules

(b) Infrequent causes: Accidents insubordination, personal conduct, uncleanliness, infraction of rules, destructive,
negligence, wastefulness and physical unfitness.

(c). other causes: Carelessness, lack of cooperation, laziness, trading in starting work, frequent absences without
leave, dishonesty , lack of specific skill, preventing promotion adverse attitude towards the organization.

Discharge procedure:
To avoid unnecessary grievances arising from discharges, proper rule should be framed to govern them.
To demonstrate that a discharge justified and does not arise out of unfair discrimination or personal of the supervisor,
following evidence needs to be produced:
1. Permanent records of all merit ratings made but he supervisors.
2. Permanent records of ratings of the defendants traits maintained by persons other than the foreman;
3. A memorandum bearing on the efforts made by the foreman or help the defendant to overcome his weakness
4. A copy of the any warning that had been sent him
5. The letter of discharge, especially if the letter states the cause of the discharge.
Discharge is generally made in accordance with the standing orders. The action taken should be bona-fide and is
neither a punitive measure nor a case of victimization.

The following element should be present in a Programme:

1. The reasons for discharge should be clearly stated.

2. The individual concerned should be adequately informed about the reasons of discharge.
3. The supervisor in charge of initiating discharge action should be fully conversed with rules and regulations of the
organization.
4. The facts regarding the violations of the rules and regulations should be carefully analyzed.
5. Line officials should be well-thought cut out procedure for setting the discharge case.
Adequate provision should be exist for review of the discharge employees case
A discharged employee needs a reasonable notice or an equivalent of pay lieu of notice.it carries with it certain
penalties’, such as difficulty of re-employment loss of benefits and in certain cases, the loss of a part of the provident
fund etc.

Dismissal:
A dismissal is the termination of the services of an employee by way of punishment for some misconduct or for the
unauthorized and prolonged absence from duty.
Before his services are terminated, an employee is given an opportunity to explain his conduct and to show the cause
why he should not be dismissed. The general rule is that in his process there should be no violation is not out of all
proportion to the offence.

Suspension:
This is a punishment and is generally awarded only after proper enquiry has been conducted. For reasons of discipline,
a workman may be suspending without prejudice during the course of an enquiry. During suspension the employee
receives a subsistence allowance.

Retrenchment:

It means permanent termination of the services of an employee for economic reasons in concern.

The industrial dispute act 1947, defines retrenchment as the termination by the employer of the services of workmen
for any reason

It must be noted that termination of services as a punishment given by way of disciplinary action or retirement either
or on voluntarily or on reaching the age of superannuation or continued ill health or on the disclosure and winding up
of a business does not constitute retrenchment. The term applied to continuing operations where a part of the
workforce is found to be superfluous.
36
A worker can be retrenched if the following conditions are satisfied:

He has been given 3 months’ notice in writing, indicating the reasons for retrenchment, and the period of notice has
expired or he has been paid wages in lieu of such notice for the period of the notice;

The worker has been paid at the time of retrenchment , compensation which is equivalent to 15 days average pay for
every completed year of continuous service or any part thereof of 6 months

Notice has been served on the appropriate government authority and the permission of such authority has been
obtained if required.

On retrenchment an employee is entitled to give a worker some relief and too often the hardship which inevitably
causes. The principle in the procedure of retrenchment is that the last person employed in each category must be the
first person to be retrenched last come first go, for this purpose the employer prepares a list of all workers in the
category where retrenchment is contemplated arranged according to the seniority of service of the employee in that
category. This list displayed on the notice board at least 7 days before the actual date of retrenchment
When vacancies arise after retrenchment the employer gives an opportunity to the retrenched workers to offer
themselves for re-employment and they are given performance. such vacancies are generally notified at least 10 days
before they filed up.

UNIT-IV:
FINANCIAL COMPENSATION, PRODUCTIVITY AND MORALE: - Principal Compensation Issues &
Management – Job Evaluation – Productivity, Employee Morale and Motivation; Stress Management and Quality of
Work Life.

JOB EVALUATION

Job evaluation is a systematic way of determining the value of a job in relation to other job in
an organization. It tries to make a systematic comparison between jobs to access their relative worth for the purpose of
establishing a rational pay structure.

FEATURES

The purpose of job evaluation is to produce a defensive ranking of jobs on which a rartinoal and acceptable pay
structure can be built. Its features are:

 It tries to assess jobs, not people

 The standards of job evaluation are relative not absolute.
 The basic information on which job evaluation are made is obtained from job analysis.
 Job evaluation are carried out by groups, not by individual.
 Some degree of subjectivity is always present in job evaluation.
 It does not fix pay scale, but merely provides a basis for evaluation a rational wage structure.
PROCESS

1. Gaining acceptance:
Before undertaking job evaluation top management must explain the aim and uses of the programme to the
employees and union.

2. creating job evaluation committee:

It’s not possible for a single person to evaluate all the key jobs in an organization. Usually job evaluation
committee consisting of experienced employees union representation and HR experts in created to set the balls
rolling.

3. finding the job to be evaluated:

37
 Every job need not be evaluated. This may be too taxing and costly. Certain key jobs in each department may be
identified. While picking up jobs, care must be taken to ensure that they represents the type of work performed in
the department.

4. analyzing and preparing job evaluation:

This requires the preparation of a job description and also an analysis of a job need for successful performance.

5. selecting the method of evaluation:

The most important method of evaluating the job must be identified now, keeping the job factors as well as
organizational demands in mind.

6. classifying jobs:
the relative worth of various jobs in an organization may be found out after arranging jobs in order of importance
using criteria such as skill requirements, experience needed under which conditions job is performed, type of
responsibilities should be shouldered, degree of supervision needed, the amount of stress caused by the job, etc.
weights can be assigned to each such factor. When we finally add all the weights, the worth of a job is determined.
The points may be converted into monetary values.

7. installing the Programme:

Once the evaluation process is over and plan of action is ready, management must explain it to employees and put
it into operation.

8. reviewing periodically:
In the light of changes in environment conditions jobs need to be examined closely. New job description need to
be written and the skills needs of new jobs need to be duly incorporated in the evaluation process. Otherwise,
employees may feel that all the job relevant factors – based on which their pay has been determined – have not
been evaluated properly.

BENEFITS:

1. It tries to link pay with the requirements of the job.

2. It offers a systematic procedure for determining the relative worth of jobs.
3. Jobs are ranked on the basis of rational criteria such as skill, education, experience, responsibilities, hazards, etc.,

LIMITATIONS:

1. Job evaluation is not exactly scientific.

2. The modus operandi of the most of the techniques is difficult to understand, even for the supervisors.
3. The factors taken by the Programme are not exhaustive.

UNIT-V:
BUILDING RELATIONSHIPS AND FACILITATING LEGISLATIVE FRAMEWORK: Trade Unions –
Managing Conflicts – Disciplinary Process- Collective Bargaining – Workers and Managerial Decision Making – A
Discussion on Concept, Mechanics and Experience.

BUILDING RELATIONSHIP AND FACILITATIMG LEGISLATIVE FRAMEWORK

TRADE UNION

Trade union movement in India

Trade unionism is a world-wide movement. The evolution and growth of trade unionism has been sine qua
non with growth in industrialization. According, the evolution of trade unionism in India is traced back towards the
latter half of the nineteenth century.

The origin and development of trade union movement in India may well be studied under distinct phases with
their distinguishing features from others. According: a historical account of the various phases of trade movement in
India is presented now:-

A. Pre-1918 Phase

38
 The setting up of textiles and jute mills and lying of the railways since 1850 paved the way for the
emergence of industrial activity and in turn, labor movement in India.
Some researchers have traced the origin of labour movement in India dated back to 1860. However, most
of the writers on the subject trace the history of labour movement in India since 1875. The first labour agitation,
under the guidance and leadership of Mr.S.S.Bengalee, a social reformist and philanthropist, started in Bombay in
1875 to protect against the appalling conditions of workers in factories, especially those of women and children
and appealed to the authorities to introduce legislation for the amelioration of their working conditions.
As a result, the first Factory commission was appointed in Bombay in the year 1875 and the first
Factories act was passed in 1881. Mr. N. M. Lokhande may be said to be the founder of organized labour
movement in India who founded the first trade union in the country, namely, the Bombay Mill Hands Association
(1890). This was followed by a series of association such as the Amalgamated Society of Railway Servants in
India (1897), The printers’ Union of Calcutta (1905), The Madras and Calcutta Postal Union (1907), and the
Kamgar Hitwardhak Sabha(1910). All these unions aimed at promoting welfare facilities for workers and
spreading literacy among them.

The broad features of the labour movement during the pre-1918 phase may be subsumed as:

1. The movement was led mostly by the social reformers and philanthropists and not by the workers.
2. There was, infract, no trade union in existence in the true sense.
3. The labor movement was for the workers rather than by the workers.
4. The movement was confined to the revolt against the conditions of child labour and women workers working
in various industries under appalling conditions.

B. 1918-1924 Phase
The phase 1918-1924 is considered as the era of formation of modern trade unionism in the country.
The trade union movement got momentum just after the close of the World War I. the post-war economic
and political conditions contributed to the new awakening of class consciousness among the workers.
This led to the formation of trade unions in the truly modern sense of the term. AS a result,
Ahnadabad Textile Labour Association (1917), led by Shrimati Ansuyaben Sarabhai; the Madras Labour
Union (1918), led by B. P. Wadia; Indian Seamen’s Union, Calcutta Clerk’s Union; and All India Postal
and RMS Association were formed.
The various factors that influenced the growth of trade union movement in India during this phase
may be briefly catalogued as follows:

1. The wretched conditions of workers on account of spiraling prices of essential commodities during
the post-World –War I led workers to form trade unions to improve their bargaining power and, in
turn, living conditions.
2. The political scenario characterized by the home-rule movement and the martial law in Punjab
made the politicians to recognize the workers movement as an asset to their cause. At the same
time, workers also needed able guidance and leadership from the politicians to settle their
grievances with the employers.
3. The Russian Revolution also swayed the Labour movement in India showing a new social order
to the common man in the country.
4. The setting up of the International Labour Organization (ILO) in 1919 also gave a big fillip to the
labour movement in India. India becoming a founder-member of the ILO required to depute
delegates to the ILO. Mr. N. M. Joshi for the first time was deputed as the representative from
India to International Labour Conferences and Sessions. It ignited workers’ anxiety to organize.
As a result, the All India Trade Union Congress (AITUC) was formed in 1920. By 1924, the trade
union movement in India proliferated to the extent of 167 trade unions with a quarter million
members.
This period in the history of trade union movement has been described as the Early Trade Union.

C. 1925-1934 Phase
With increasing hardships of workers, the signs of militant tendencies and revolutionary
approach in trade unionism got expression into violent strikes since 1924. The communists gained
influence in the trade union movement during this period.
They split the Trade Union Congress twice with their widening difference with the left-wing
unionists. The moderate section under the leadership of Mr. N. M. Joshi and Mr. V. V. Giri seceded

39
 from the Congress and set up a separate organization named the National Trade Unions Federation
(NTUF).
Another split in AITUC took place in 1931 at its Calcutta session when the extreme left wing
under the leadership of Messrs S. V. Deshpande and B. T. Randive broke away and formed a separate
organization, namely, the All India Red Trade Union Congress.
Two Year later, the National Federation of Labour was formed to facilitate unity among all
the left-wing organizations of labour. As a result, the AITUF and NFL merged to form the National
Trade Union Federation (NTUF).

Another important feature of this period was the passing of two Acts, namely, the Trade
Unions Act, 1926 and the Trade Disputes Act, 1929 which also gave a fillip to the growth of trade
unionism in India.
The former Act provided for voluntary registration and conferred certain rights and privileges
upon registered unions in return for obligations. The later Act provided for the settlement of trade
unions. This phase of the Indian Labour movement may be described as The Period of left wing Trade
Unionism.

D. 1935-1938 Phase
The Indian National Congress was in power in seven provinces in 1937. This injected unity in
trade unions. As a result, The All India Red Trade Union Congress merged itself with the AITUC in
1935. After three years in 1938, the National Trade Union Congress (NTUC) also affiliated with the
AITUC.
Other factors that contributed to the revival of trade unions were increasing awakening among
the workers to their rights and change in the managerial attitude towards trade unions. In 1938, one of
the most developments took place was the enactment of the Bombay Industrial Disputes.
Act, 1938. An important provision of the Act, inter alia, to accord compulsory recognition of
unions by the employees gave a big fillip to the growth of trade unionism in India.

E. 1939-1946 Phase
Like World War I, the World War II also brought chaos in industrial front of the country.
Mass retrenchment witnessed during the post-World War II led to the problem of unemployment. This
compelled workers to join unions to secure their jobs. This resulted in big spurt in the membership of
registered trade union from 667 to 1939-40 to 1087 in 1945-46.
Somuchso, the number of women workers in the registered trade unions witnessed a
phenomenal increase from 18,612 to 38,570 during the same period. The AITUC again split in 1941
when Dr. Aftab Ali, President of Seamen’s Association, Calcutta disaffiliated his union from the
Congress and formed a new organization known as the “Indian Federation of Labour”.
The year 1946 was also marked by two important enactments, namely, the Industrial
Employment (Standing Orders) Act, 1946 and the Bombay Industrial Relations Act, 1946. Both the
Acts, through their provisions, contributed to strengthen the trade unionism in the country.
F. 1947 and Since
Proliferation of trade unions in the pattern of proliferation of political parties has been a
distinguishing feature in the trade union history of India during the post-Independence period. In May
1947, the National Trade Union Congress (INTUC) was formed by the nationalists and moderates and
was controlled by the Congress Party. Since by then, the AITUC is controlled by the Communists.
The congress socialists who stayed in AITUC at the time of the formation of INTUC
subsequently formed the Hind Mazdoor Sabha (HMS) in 1948 under the banner of the Praja Socialist
Party. Subsequently, the HMS was split up with a group of socialist and formed a separate
association, namely, “Bhartiya Mazdoor Sabha ” (BMS) which is now an affiliate of the Bhartiya
Janata Party (BJP). Years after, the communist party split into various fractions forming the United
Trade Union itself from the UTUC and formed another UTUC- Lenin Sarani.
Of late, with the emergence of regional parties since 1960, most of the regional parties have
shown its inclination to a trade union wing, thus, adding to the proliferation of trade unions in the
country. Thus, it is clear that the origin and growth of trade union movement in India is riddled with
fragmented politicization.

At present, there are 8 central trade union organizations. Of these, four major federations with their national
network are:

40
 1. All India Trade Union Congress (AITUC)
2. Indian National Trade Union Congress (INTUC)
3. Bhartiya Mazdoor Sangh (BMS)
4. Centre of Indian Trade Unions (CITU)

Recent Trends in Trade Union Movement

Industrial economy of the country has undergone changes after the liberalization process started from 1990.
Concomitantly, the trade unionism in the country has also undergone changes. Some of the important changes taken
place in the trade union movement in India in the recent times are outlined as follows:

1. Attitudinal Change. One perceptible trend witnessed, of late, is the change in the attitude of trade unions towards
management, industry and government. This is evident from the following facts:

i. There is a decreasing trend in the number of trade union members. For example, the
membership of NITUC has come down to 54.05 lakh in 1993 from 54.35 lakh in
1989. So is the case of CITU also. Of course, decreasing membership in trade union
is very much evident elsewhere as well e.g., Australia, France, Japan etc.
ii. Gone are days of cat-call strikes, bandhs, gheraoes and violence. With increasing
education and awareness of workers, trade unions have become more mature, rational
and realistic in their approach and action. As such, trade unions now do not oppose
economic reforms but the adverse effects of reforms.
iii. With such reconciling attitude, they have started accepting the new human resource
practice like voluntary retirement scheme (VR), golden handshake, and a like which
used to be bone of contention till the other day.
2. Depolarization of Unions. Days are also gone when trade union seems relish affiliations and confirming the trite
saying “Nature abhors vacuum.” Having realized the evils of political affiliations of union, they have started to
insulate themselves against the political influence.
Trade unions in leading organizations like Blue Star, Philips, Hindustan lever, Siemens,
Telco, Tomcod, Voltas and the like are not affiliated with any political party. That depolarization
of unions is beneficial for employees is evident from the Kamani Industrial experience where the
internal union is running it successfully through workers’ co-operative.
3. Multiplicity of Unions. Formation of trade unions on fragmented basis has, of late, led to multiplicity of unions.
The multiplicity of unions in some organizations has assumed to mind boggling stage. For example, the number of
unions in Bokaro Steel Plant is 68, in Delhi Transport Corporation 50, in Singareni Colleries 36, in Calcutta
Corporation 100 and in Steel Authority of India Limited (SAIL) 240.
To sum up, the attitude of trade unions is changing, the membership is declining, the political
affiliation is wanning, the number is multiplying and, in turn, the people sympathy is
receding.

COLLECTIVE BARGAINING:

Collective bargaining may be defined as the process in which conditions of employment are determined by
agreement between representatives of the union, on the one land, and those of the employer, on the other. It is called
“collective” because both the employer and the employees act as a group rather than individuals.

The bargaining process has been caricatured in variety of ways.

1. As a power game combining deception, bluff, luck and ability;

2. As a debating society with long-winded speeches to impress one’s colleagues and possibly have some
effect on the opposition;

3. As power politics or pure strength in forcing terms of settlement on the weaker party and finally;

4. As a rational process in which appeal to facts and to logical reconciles conflicting interest in the light
of common interest.

According to Walton Mckersie,” a collective bargaining process generally consists of four types of activities:
distributive bargaining, integrative bargaining, attitudinal structuring and intra-organisational bargaining.”
41
The first type of activity often involved in a collective bargaining process is distributive bargaining. This is straight-
out haggling over how to split up a pie . In this type of activity one pays gain is the other party’s loss. When there are
economic issues in dispute(e.g. wages) this type of activity predominates in the bargaining process.

Second type of activity is integrative bargaining. This is negotiation of an issue on which both parties may
gain, or at least neither one loses. A co-operative search for the best job evaluation system or a training programme are
examples of integrative bargaining. Third type of activity involved in collective bargaining is attitudinal structuring.

The process of collective bargaining helps in shaping such attitudes as trust or distrust, friendliness or hostility
between the parties. This is simple fact that both parties have to deal with each other almost daily and that they do not
have just a sporadic relationship promotes restraint between the negotiators during the bargaining process. But if there
is a backlog of bitterness, it can erupt and destroy all negotiations over a new contract.

The fourth type of activity that goes on in all collective bargaining is intra-organizational bargaining. i.e.,
maneuvering to achieve consensus within the labor and management organizations. There are always groups within a
union which believe that their interests are not being given adequate consideration by the organization. The skilled
workers may believe that the union pays too much attention to the unskilled; women members may think that their
interests are not fairly considered by the men who run the union and so on. Similarly, on the side of the employer there
may be differences which need to be resolve.

Conditions Essential for Successful Collective Bargaining

 A favorable political climate

 Freedom of association
 Stability of workers’ organization
 Recognition of trade unions
 Willingness to “Give And Take”
 Avoidance of unfair labor practices

Benefits of Collective Bargaining

1. It provides a method for the regulation of conditions of employment by those directly concerned. The
employees and workers in an industry know more about its conditions and problems than anyone else.

2. It often leads to better mutual understanding. The employers gain a greater insight into the problems and
aspirations of the workers, while the latter become more aware of the economic and technical factors involved
in industrial management.

3. It provides a flexible means of adjusting wages and conditions of employment to economic and technological
changes in industry. The parties can meet whenever necessary and can adapt the terms of their agreements to
those changes.

4. It creates a sort of ‘industrial jurisprudence’. Two kinds of rules-procedural and substantive are framed.
Procedural rules, as the name implies, set out the procedures that govern the behavior of the two groups –
employer and the union, and regulate the manner in which they deal with each other. They lay down, for
example, how contracts may be negotiated, modified, renewed, or terminated.

Substantive rules, on the other hand, regulate the relations between individuals and not a group. It is
possible to distinguish three different kinds of relations between individuals which are regulated by
substantive rules. There is first the economic relationship. The rules set employer. They also stipulate
manning procedures, recruitment policies and the like. Next comes the political relationship. Here the rules
stipulate who may exercise power over whom, and for what purpose. Last cones the social relationship. Rules
provide standards of behavior based on shared interest, sentiments, beliefs and values among various groups
of employees.

5. It leads to better implementation of describes because of the direct involvement of both the parties in reaching
them. Parties know that the decisions are their own and are not imposed.

42
Structure of Collective bargaining

The term bargaining structure refers to the level local, regional, industrial or national at which bargaining takes
place. One important determinant of bargaining structure is the nature of bargaining issues. Some issues, like wages,
which have wide implications, are handled within expanded bargaining structures. Other issues, such as pensions and
insurance plans, are best treated on a company-wide basis because of the need for uniformity created by actuarial and
administrative considerations. Finally, there are questions of work rules, safety, washing facilities, etc. that are
essentially local in nature and must be related to the conditions that prevail in a particular plant or department. From
the point of view of an individual establishment plant-level bargaining is generally useful in that the settlement is
tailored to the conditions of the enterprise, e.g., its capacity to pay, its market conditions and objectives, etc.

Collective bargaining process

1. Parity of Bargaining on the two sides.

2. Problem-solving Approach.

3. Good Beginning.

4. Continuity of Talks

5. Common Approach Towards Outside Parties.

Suggestions to make collective bargaining more effective in India

1. Compulsory adjudication of disputes should be used only as a last resort.

2. Trade union should be strengthened.

3. Legal provision may be made either by a separate legislation or by amending an existing enactment for

 Compulsory recognition of trade unions and certification of unions as bargaining agents,

 Prohibition and penalization of unfair labour practices,
 Bargaining in good faith by both employers and unions, and
 Conferring legal validity and legitimacy on collective agreements

4. Workers education should be intensified for building up internal union leaderships and making workers more
knowledgeable and conscious about their rights and obligations.

5. The idea of one union for one plant or one industry should be popularized.

6. Adequate statutory provisions should be made to make to make an agreement cover all the workers.

7. On the failure of negotiations both parties should have equal right and freedom to work or to declare a
lockout.

8. In addition to the existing authorities under the Industrial Disputes Act., one more authority should be
constituted to promote collective bargaining.

9. Each party should cultivate the right type of attitude towards the other party.

10. Each party should develop the skill to understand the viewpoint of the other party.

11. A tradition of successful collective bargaining should be built.

12. Collective bargaining should usually be resorted to in settling disputes concerning interests only.

43
 Trade union
According to Webbs “A continuous association of wage earners for the purpose of maintaining
or improving the conditions of their working lives”

Reason for its Existence

1: Job security

2: Wages and benefits

3: Working conditions

4: Fair and just supervision

5: Powerlessness

6: Need to belong

REGISTRATION OF TRADE UNIONS

The application for registration must be sent to the registrar of trade unions in form “A” as
required by the trade union act, 1926 under section 5 .every application must be accompanied
with the following particulars:

1. The names, occupations and addresses of the members making application.

2. The names of the trade union and the address of the head office

3. The titles, names, ages, addresses and occupation of the office bearers of the trade union

4. If the trade union exists more than one year than the prior to the application of its registration,
the financial statement of that union which will show the assets and liabilities must be produced
to the registrar.

5. Besides every application must be accompanied with a copy of rules of trade union complying
wit the items as specified under section 6 of the trade union act 1926.

RULES OF THE TRADE UNION:

1. Name of the trade union

2. The whole of the objects for which the trade union has been established

3. The whole purpose for which the general funds of a trade union shall be applicable

INDUSTRIAL CONFLICTS

CLASSIFICATION

1. Interest Disputes: These are the disputes that arise out of deadlocks in negotiation.

2. Grievance Disputes: these are the disputes that arise from day-to-day grievances.

3. Unfair Labour Practices: These are the disputes that arise from acts of interference with the exercise of right
to organize, acts etc.

4. Recognition Disputes: These are the disputes that arise due to the recognition of trade union as a bargaining
agent.

44
DISPUTES

Definition: According to Industrial Disputes Act, 1947, Section 2(k),”industrial disputes means any dispute or
difference between employers and employers, or between employers and workmen or between workmen and
workmen, which is connected with the employment or non-employment or terms of employment or with the
conditions of labour of any person.”

Features

1. Many of the present-day conflicts are totally devoid of cost benefit consciousness on the part of labour. Many
of them were long-drawn-out. The issue raised by strikes and the quantitative benefits even in the cases of
total success, show a lack of proportion to the disadvantage of labour. It is as though damage and loss to the
employer rather than benefits for labour have been the objectives of struggle.

2. Labour pressure by the management pressure of lockout.

3. Most of the strikes are political strikes; they are not caused by any industrial dispute.(bandh, Gherao, dharna)

4. Lock-outs, account for a sizable man days lost.

a. It may be due to employers’ reaction to a turbulent industrial situation erupting in ‘gheraos,’ violence
characterized by destruction of property.

b. A habitual reaction of the traditional or authoritarian style of management of labour intransigence.

TYPES OF INDUSTRIAL CONFLICTS

1. Strikes
a) Primary
b) Secondary
c) Others
2. Lock-outs

Strike

Definition: According to Peterson, “strike is a temporary cessation of work by a group of employees in order to
express grievances or to enforce a demand concerning changes in work conditions.”

Section 2(q) of the Industrial Disputes Act, 1947 strike is “a cessation of work by a body of persons employed
in any industry, acting in combination or a concerted refusal under a common understanding, of a number of persons
who are or have been so employed to continue to work or to accept employment.”

Different types of strikes

1. Primary Strike
2. Secondary Strikes
3. Others

1. Primary Strikes

 Stay away Strikes: In this strike, workmen stay away the work place. They organize rallies,
demonstrations etc.
 Stay-in Strike or Sit-down strike: In this strike, workmen come to place, they stay at work place but
they don’t work.
 Tools-down, pen-down or Mouth-shut Strike: In this Strike, the strikers lay down their tools in case of
factory workers, lay down their pens in case of office workers and shut their mouth in case of teachers.
 Token or Protest Strike: It is a very short duration and is in the nature of signal for the danger ahead. In
this strike the workers do not work for an hour or a day.
 Lightening or Wildcat strike: In this strike, the strikers strike the work without any prior notice or with a
shortest notice.
 Go Slow: In this strike, the workers intentionally reduce the speed of work.

45
  Work to Rule/Work to Destination: In this strike, the strikers undertake the work according to rules or
job description.
 Picketing: It is an act of posting pickets and implies machinery or patrolling of the workmen in front of
the premises of the employer.
 Boycott: It aims at disrupting the normal functioning of the enterprise.
 Hunger strike: This type of strike is resorted to either by the leader of the union or by some workers all
at a time or in small batches for a limited period or up to the period of settlement of disputes.
 Gherao: It is a physical blockade of target either by encirclement, intended to block the regress and
ingress from and to a particular office, workshop etc.

2. Secondary Strikes

 Sympathetic strikes: Against a third party.

3. Others

 General
 Particular
 Political
 Bandhs

“Strikes” when justified?”

Neither all strikes can be regarded as justified, nor all strikes are unjustified. There are some requirements
which must be fulfilled to make a strike justified:

 It should be launched only for economic demands such as basic pay, dearness allowance, increment, leave and
other fringe benefits which are primary objects of a trade union.

 If a strike is launched for political or other reasons and not for any trade union objects, it would be unjustified.

 The demand of the workmen should be reasonable and legitimate so that there is a Prima facie justification for
the demands, i.e., the demand should not be raised frivolously or for ulterior reasons.

 When demands are excessive and unreasonable or when the demands which were settled were tried to be
reagitated, then any strike to enforce the said demand cannot be said to be justified.

 When existing facilities are summarily withdrawn or when the provident fund is closed and ration benefit
withdrawn strike would be justified.

 If there is any unfair labour practice on the part of management, strike is justified.

 When there is no response from the management inspite of referring a demand and issuing reminders, the
strike is justified.

Prevention of strike

According to Laski, “A strike is unjust in that it is an appeal to force in a matter of dispute right; it is inhuman
because of the misery it causes to the workers; it is wasteful of resources of capital and labour; it is wicked, because it
stirs up hate; it is anti-social, in that it denies and disrupts the solidarity of the community.

The following suggestions may prove fruitful to prevent strikes:

 It should adopt a well-defined, precise, clear and progressive personal policies aiming at the maintenance
of good industrial relations in the undertaking

 It should ensure an effective administration and timely implementation of these policies.

 It should adopt fair and reasonable recruitment, promotion and wage policies and ensure their proper
implementation.

46
  It should ensure an effective two-way system of communication. This will help the management to create
a favorable atmosphere of goodwill, and faith in the organization and understand human climate threat;
and enable the workers to appreciate the management policies in their right perspective so that no
misunderstanding is created with the employees at all levels.

 It should provide just and human conditions of work, along with suitable welfare activities for the benefits
of the workers and develop close personal contacts with the employees of all levels.

 It shall evolve and adopt a suitable and speedy Grievance Procedure for redressal of grievance of the
worker.

 It should give recognition to a representative union and should have pragmatic approach towards union
activities.

 It should encourage joint consultation at different levels and encourage collective bargaining fir resolving
the difference between them.

Lock-outs

Ordinarily, “lock-out” means the action of an employer in temporarily closing down or shutting down his
undertaking or refusing to provide his employees with work with the intention of forcing them either to accept
demands made by him or to withdraw demands made by them on him.

But the definition, given by the Industrial Disputes Act, 1947, says:

“Lock-out means the closing of a place of business of employment or the suspension of work, or the refusal
by the employer to continue to employ any number of persons employed by him.”

[Section 2(1)] Thus:

 Lock-out is the closure of industrial undertaking because of the existence of or apprehension of an industrial
dispute, violence and loss to his properties.
 It is suspension of employment relationship, in so for as the employer refuses to give work to the workmen
until they yield to his demand or withdraw his demands made on him; or because of closing of a place of
employment the suspension of the work.
 Lock-out is an antithesis/counterpart of a strike. Just as the employees have the weapon in their hands to put
pressure on the employer by going on strike so also, the employer has a weapon against the employees lock-
out his premises and not to allow the workers to come into work.
 Lock-out is used with some intention, i.e., to coerce or force the workmen to come to terms. Lock-outs, thus,
necessarily involves an overt act on the part of the employer involving an element of motive of ill-will. In the
absence of this overt act, the temporary suspension of work would not amount to a lock-out and the workmen
cannot claim wages for the period of closure.

But the following does not constitute “Lock-out”:

 Prohibiting an individual employee is not lock-out.

 Termination of employment by retrenchment does not amount to lock-out.
 Termination of service of more than one person at the same time would not be lock-out.
 Declaration of lock-out by an employer merely on the ground that the workmen have refrained from attending
to work.

Explain the causes of industrial conflicts.

Industrial conflict:

According to the Industrial Disputes Act, 1947, industrial dispute means any dispute or difference between
employers and employers, or between employers and workman, or between workman and workman, which is
connected with the employment or non employment or terms of employment or with the conditions of labor of any
person.

47
CAUSES OF DISPUTES:

The causes of industrial disputes are many and varied. The major are related to wages, union rivalry, political
interference, unfair labor practices, multiplicity of labor laws, and others.

WAGE DEMANDS:

The most important cause for dispute relate to wages. The demand for wages has never been fully met because
of inflation and high cost of living. High inflation results in increased cost of living resulting in never ending demands
from unions.

Managements and unions will have a wage agreement generally valid for three years. Each new agreement is
preceded by a prolonged battle between the management and unions, often resulting in strikes and lockouts.
Agreement reached in one company will inspire unions in other plants in the locality, and make them pitch tents
demanding similar rise in wages.

Closely related to wages are bonus, incentives, and other allowances. Of all these, wages have been a major
issue of contention that leads to disputes.

UNION RIVALRY:

Most organizations have multiple unions. Multiplicity of unions leads to inter-union rivalries. If one of the
unions agrees to a wage settlement, another union will oppose it. The consequence is never-ending disputes.
Multiplicity of unions poses peculiar problem to managers. One such problem relates to authenticity of memberships.
Unions put up respective members in such a way that when added together the figure exceeds the total number of
workers in the organization. Another problem relates to the selection of a bargaining agent in the process of collective
bargaining. Union rivalry leads to large-scale violence.

POLITICAL INTERFERENCE:

Major trade unions are affiliated to political parties. Political affiliation is not peculiar to our country alone.
Even a cursory assessment of labor movements around the world would show that trade unions are, by their very
nature, political, and that politicization of labor is the rule rather than the exception. What happens when unions get
politicized? First, distant ideological issues divide and fragment unions on party line. When unions multiply, inter
union rivalry erupts and the consequences are too obvious. Second, inspires by their political ideologies, certain
unions refuse to sign an agreement even if its favorable to all the workers and thus perpetual dissenters manage to
keep the issue alive. Third, every political party somehow engineers strikes, gheraos, and bandhs to demonstrate its
political strength. Invariably, the political party which is in power favors a union which is affiliated to it, and the
results in endless disputes.

UNFAIR LABOUR PRACTICES:

Majority of disputes are management inspired. The following points justify the assertion:

1. The management is generally not willing to talk over any disputes with the employees or the representatives,
or refer to ‘arbitration’ even when the trade unions want it so, and this enrages the workers.

2. A management’s willingness to recognize a particular trade union and the dilatory tactics to which it resorts
while verifying the representative character of any trade union have been a source of industrial strife.

3. Even when the representative trade unions have been recognized by the employees, they do not work in a
number of cases, delegate enough authority to their officials to negotiate with their workers, even though the
representatives of labors are willing to commit themselves to a particular settlement.

4. The services and benefits offered by the management to its employees promote harmonious employer worker
relations. But a large number of managements have not taken any steps to provide these benefits and services
for their workers.

The Industrial Disputes Act 1947, is more specific about unfair labor practices. According to the Act, The following
constitute unfair labor practices:

48
1. To interfere with, restrain from or coerce workmen in the exercise of their right to organize, form, join or assist a
trade union or to engage in concerted activities for the purpose of collective bargaining or other mutual aid or
protection.

2. To dominate, interfere with or contribute support, financial or otherwise, to any trade union.

3. To establish employer-sponsored trade unions of workmen.

4. To encourage or discourage membership in any trade union by discriminating against any workmen.

5. To discharge or dismiss workmen.

6. To abolish work of a regular nature being done by workmen, and to give such work to contractors as a measure of
breaking strike.

7. To transfer a workmen mala fide from one place to another, under the guise of following management policy.

8. To insist upon individual workman, who are on a legal strike, to sign a good conduct bond as a precondition to
allowing them to resume work.

9. To show favoritism or partially to one set of workers regardless of merit.

10. To employ workman as ‘badlis’, casuals, or temporaries and to continue them as such for years, with the objective
of depriving them of the status and privileges of permanent workmen.

11. To discharge, or discriminate against any workers for fulfilling charges or testifying against an employer in any
enquiry or proceeding relating to any industrial dispute.

12. To recruit workmen during a strike which is not an illegal strike.

13. Failure to implement award, settlement or agreement.

14. To indulge in acts of force or violence.

15. To refuse to bargain collectively, in good faith with the recognized trade unions.

16. Proposing or continuing a lockout deemed to be illegal under this Act.

MULTIPLICITY OF LABOUR LAWS:

Labor laws in our country, as in several other countries, have been enacted to create conditions for the protection of
labor from unfair employment practices and to provide a legal framework within which IR is to be regulated.

In order to revamp the judiciary, The Government of India set up a Second National Commission on labor on October
15, 1999. The commission was required to look into the following:

 To suggest rationalization of existing laws relating to labor in the organized sector.

 To suggest an umbrella legalization for ensuring a minimum level of protection to the workers in the
unorganized sectors.

 In developing the framework for its recommendations, the Commission was to take into consideration the
minimum level of labor protection and welfare measures, and the basic institutional framework for ensuring
the same.

The commission submitted its report on June 29, 2002. It recommended the following:

 No prior permission necessary for lay-off, retrenchment.

 No need for any wage bond.

 Five holidays and 10 restricted once a year.

 No contract labors for core production services.

49
  A trade union with at least 66 per cent membership to be single negotiating agent.

 Setting up a grievance redressal committee for organizations employing 20 or more persons.

 Creation of high power National Social Security Authority, preferably under the Prime Minister’s
chairmanship.

 Evolving a policy framework and enactment of law for unorganized sector works to ensure generation and
protection of jobs.

OTHERS:

a. Affiliation of trade unions with political party and political leadership of trade union.

b. Political instability, poor centre-state relations etc.

c. Other political reasons like character crisis, values etc.

PREVENTION OF INDUSTRIAL CONFLICTS

Prevention of industrial disputes may have different methods. These methods “cover the entire field of
relations between industry and labour and include enactment and enforcement of progressive legislation, works
committees and councils, wage boards, and trade boards profit sharing and co-partnership, tripartite labour machinery,
education, housing, welfare work, and all such measures which can bridge the gap between the employers and
employed.” The significant of preventive measures may be broadly outlined as below (Fig. 1)

Preventive Measures of Industrial Conflicts

Labour Tripartite Standing Grievance Joint Collective

and Orders Procedure Consultati Bargaining
Welfare Bipartite on
Officer Bodies

Strong Labour Co-partnership Joint

Trade and Profit Sharping Consultations
Unions

Fig 1. Preventive Measures of Industrial Conflicts

Labour Welfare Officer

Section 49(1) and (2) of the Factories Act, 1948 specifies that every factory wherein 500 or more workers are
ordinarily employed, at least one welfare officer must be appointed, where the number of workers are in excess of
50
2,500, the Assistant and/or Additional Welfare Officers are required to be appointed to assist the welfare officer. The
functions of Labour Welfare Officer are shown in (Fig. 2)

Labour Welfare Officer

Labour Welfare Labour Administration Labour Relations

Functions
Functions Functions

Advice & Assistance in These may cover: These may consist of:
implementing legislative and non-
legislative provisions relating to: 1. Organisational discipline 1. Administration of
2. Safety & medical standing orders
1. Health and Safety administration 2. Settlement of
2. Working conditions 3. Wage & Salary Grievances
3. Sanitation and Cleanliness administration 3. Settlement of Disputes
4. Recreation 4. Administration of through statutory
5. Welfare amenities legislation convering procedures
6. Workers’ Education Industrial Relations 4. Trade Unions and
7. Services like cooperatives Union Management
grainshops, housing Relations
cooperatives. 5. Steps to increase
8. Formation of Welfare productive efficiency
Committees
9. Housing
10. Implementation of Welfare
Acts.
Fig. 2 Labour Welfare Officer

Qualification of Labour Welfare Officer

A welfare officer to be appointed should possess: (i) a university degree; (ii) degree or diploma in social
sciences or social welfare from any recognized institution; and (iii) adequate knowledge of the language spoken by the
majority of the workers in the area where the factories, mines and plantations are situated.

The National Commission on Labour has stated that “Laws were made to ensure that the managements
appointed a person exclusively to look after the welfare of their workers and help them in discharging their statutory
obligations in respect of welfare measures. Welfare officers should form part of the administration in order to
discharge their responsibilities effectively. Therefore, the eligibility of a welfare officer should not be called upon to
handle labour disputes on behalf of the management.”

The Committee on Labour Welfare, after going through the views expressed by the State Governments, public
sector undertakings, private employers’ organizations, workers’ organizations and eminent persons in the field or
relations and on the role and status of welfare officer, recommended that.

“The management should designate one of the existing officers of their Personnel Department as Welfare
Officer to fulfil the purpose of the law. The management should ensure that only such officers of the Personnel
Department are designated to look after the welfare activities as are properly qualified to hold these posts and has
aptitude for welfare work.”

51
Functions of Labour Welfare Officer

The Committee on Labour Welfare has laid down the following duties of labour welfare officers, based upon
the Model Rules framed under the Factories Act of 1948:

(a) Supervision of: (i) safety, health and welfare programmes like housing, recreation, sanitation services as provided
under the law or otherwise; (ii) working of Joint Committees’ (iii) grant of leave with wages; and (iv) redress of
worker’s grievances.

(b) Counselling Workers in: (i) personnel and family problems, (ii) helping them to adjust to their work
environment, and (iii) understand their rights and privileges.

(c) Advising Management in Matters of: (i) formulating labour and welfare policies; (ii) apprenticeship training
programmes; (iii) meeting statutory obligations of workers; (iv) developing fringe benefits; and (v) workers’
education and use of communication media.

(d) Establishing liaison with workers so that they may: (i) understand various limitations under which they work; (ii)
appreciate the need of harmonious industrial relations in the plant; (iii) interpret company policies to works; and
(iv) persuade workers to come to a settlement in case of disputes.

(e) Establishing liaison with management so that the latter may: (i) appreciate workers’ viewpoint to various matters
in the plant; (ii) welfare officers should intervene on behalf of workers in matters under consideration of the
management; (iii) help different department heads to meet their obligation under the Act; (iv) maintain
harmonious industrial relations in the plant; and (v) suggest measures for promoting general well-being of
workers.

(f) Working with Management and Workers: (i) to maintain harmonious industrial relations in the plant; (ii) to
arrange for prompt redressal of grievances and speedy settlement of disputes; (iii) to improve productivity and
productive efficiency of the enterprise.

(g) Working with Outside Public: (i) securing proper enforcement of various Acts as applicable to the plant by
establishing contact with factory inspectors medical officers and other inspectors; (ii) other agencies in the
community with a view to helping workers to make use of community servies.

The National Commission on Labour concluded: “The care of workers in all matters affecting their well-being,
both at the place of work and outside, puts a special responsibility on the welfare officer. He should be a
maintenance engineer on human side. In many cases, he also handles grievances and complaints of workers
relating to terms and conditions of service and domestic and other matters which lies in the domain of personnel
management. There is, thus, virtually no demarcation between personnel management functions and welfare
functions.” The Commission recommended that in order to reduce the hierarchical hiatus in the status of there two
officers, there should be an intercharge to encourage professional functional mobility and to eliminate the
functional monopoly as well as the hierarchical status problem.”

Tripatite and Bipartite Bodies

Industrial relations in India have been shaped largely by the policies and practices or tripartite and bipartite
bodies. The purpose of consultative machinery is to bring the partners together for mutual settlement of differences in
spirit of cooperation and goodwill. Whitely Commission in 1931 recommended for the setting up of tripartite
consultation on labour matters on the pattern set by the International Labour Organisation.

The experiences of consultations between labour, management and Government led to the setting up of
preliminary labour conference (later named as Indian Labour Conference) and the Standing Labour Committee) in
1943 with the representation from Government, Labour and Management.

52
WORKERS PARTICIPATION IN MANAGEMENT

Workers participation in management that crystalllilses industrial democracy means management of an

industrial unit by the people for the people. The workers participation in management also called participative
management are the manifestations of industrial democracy.

WPM gives the workers a sense of belongingness to organization and also a sense of commitment to various
decisions taken. These contribute to better results in an organization. The same has become the most desideratum of
the time in industrial organizations.

The results of various experiments initiated by several countries like England, Sweden, Germany, USA,
Yugoslavia, etc., confirm the role of WPM gives the workers a sense of belongingness to the organizational
performance. ENGLAND and Scandinavian nations, where negotiation rather than legislation has been the traditional
method of solving industrial problems, also support the significance of WPM

Definition of WPM:

According to Keith Davis, “Workers' participation refers to the mental and emotional involvement of a
person in a group situation which encourages hem to contribute to group goals and share in responsibility of
achieving them.

In the words if Mehtras, applied to industry, the concept of participation means sharing the decision-making power
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”.

In Yugoslavia, WPM is governed by the law on Workers' Management of State Economic Enterprises and
Higher Economic Association. The Act consists of a three-tier participation structure: collective bargaining, workers'
council, and board of management.

Characteristics:

The following are the main characteristics of WPM;

Participation impliles practices which increase the scope for employees' share of influence in decision-making process
with the assumption of responsibility.

1. Participation presupposes willing acceptance of responsibility by workers.

2. Workers participate in management not as individuals but as a group through their representatives.
3. Worker's participation in management from collective bargaining in the sense the while the former is based on
mutual trust, information sharing and mutual problem solving the latter is essentially based on power play,
pressure tactics, and negotiations.
Objectives:

The objectives of wpm are closely netted to the rationale for WPM. Accordingly, the objectives of WPM is to
co-determine at the various levels of enterprises in Germany, assign the final authority to workers to over all matters
relating to an undertaking in Yugoslavia, promote good communication and understanding between labour and
management on the issues of business administration and production in Japan, and enable work-force to influence the
working of industries in China.

In India, the objective of the government in advocating for workers' participation management, as stated in
industrial policy Resolution 1956, is part of its overall endeavor to create a socialist society where in the sharing of a
part of the managerial powers by workers is considered necessary.

The objective of WPM, as a envisaged in the Second Five Year Plan of India is to ensure;

1. Increase in productivity for the benefit of all concerned to an enterprise, i.e., the employer, the employees and
the community at large.
2. Satisfaction of worker's urge for self-expression in the matters of enterprise management.
3. Making employees better understood of their roles in the organization.
In ultimate sense, the objective of WPM in India is to achieve organizational effectiveness and satisfaction of
the employees. Accordingly, the objectives of WPM in India are to.
53
 4. Promote mutual understanding between management and workers, i.e., industrial harmony.
5. Establishing and encourage good communication system at all levels.
6. Create and promote a sense of belongingness among workers.
7. Help handle resistance to change.
Levels of participation:

Mhetras, has suggested five levels of workers' participation ranging from the minimum to the maximum.
Since these levels of participation influence the process and quality of decision making in an organization. We are
therefore, highlighting here these levels briefly ranking them form the minimum to the maximum level of
participation.

Informative participation:

This refers to management's information sharing with workers on such items those are concerned with
workers. Balance sheet, production, economic conditions of the plants, etc., are the examples of such items. It is
important to note that here workers have no right of close scrutiny of the information provided and management has
its pro-native to make decisions on issues concerned with workers.

Consultative Participation:

In this type of participation workers are consulted in those matters which relate to them. Here the role of workers is
restricted to gives their views only. However, the acceptance and non-acceptance of these views depends on
management. Nonetheless, it provides an opportunity to the workers to express their views on matters involving their
interest.

Associative participation:

The role of workers” council is not just advisory unlike consultative participation. In a way, this is an
advanced and improved form of consultative participation. Now, the management is under a moral obligation to
acknowledge, accept and implement the unanimous decision of council.

Administrative participation: in the administrative participation, decisions already taken are implemented by with
workers. Compared to the former three levels of participation, the degree of sharing authority and responsibility by
the workers is definitely more in the participation.

Decisive participation:

Here, the decisions are taken jointly by the management and the workers of an organization.
In fact, this is the ultimate level of workers' participation in management.

Forms of WPM

The form of WPM depends to a great extent, on the levels of participation; the reason being the forms of
participation attempt to achieve the objectives of WPM set by an organization. Hence it deserves mention. Now we
therefore consider the well-known forms of WPM adopted in organization.

Suggestion scheme:

Under this scheme a suggestion committee is constituted consisting of equal number of members from
management and workers. A suggestion box is installed at an appropriate place in the organization into the suggestion
box. The suggestion committee periodically scrutinizes the suggestions given by the workers. Good suggestions are
accepted and implemented and also rewarded. This encourages workers to make more and better suggestions.

Works committee:

Under section 3 Industrial Disputes Act, 1947, the appropriate Government may require an enterprise
employing 100 or more workers, to constitute a works committee with equal number of representatives from the
employees and the management.

54
 Joint Management Councils (JMCs): JMCs were introduced first in 1958. These councils area formed at plant
level with equal number of representatives from employers and employees. These are mainly consultative and
advisory ones.

Board Representation:

Under this scheme, one or two representatives of workers are nominated or elected on the Board of Directors.
The basic idea behind incorporating workers' representation of the Board of Directors is to safeguard the workers'
interest, usher industrial harmony and good relations between the workers and management. This is the highest form
of workers, participation in management.

Co-partnership:

Co-partnership means employees participation in the share capital of their company. Under this scheme,
workers are induced to buy equity shares of the company. Workers may be allowed the make payments in
installments, advanced loans or even give financial assistance to enable workers to buy equity shares. Workers hold
sixty-one per cent of the shares of Otto India, Calcutta and forty-one per cent of the shares of Sehgal Sanitarily
Fittings, Jallandhar,

For example as shareholders, workers take part in the management by way of electing their representatives the Board
of Directors. However, the workers' participation under this method is limited; trade unions in India do not favor this
scheme.

Workers “complete ownership under this scheme workers acquire complete control of management of their
enterprise through an elected board or and workers' council. This system on participation is also called “self-
management. “This prevails in Yugoslavia. In this system two different set of persons perform two distinct types of
functions, namely, managerial and operative.

Participation through collective Bargaining:

The principles of collective bargaining confers on the management and workers the right, through collective
agreements, to lay down certain rules for the formulation and termination of the contract of employment as well as if
service in an establishment. Collective bargaining a can really work well if the bargaining in the right spirit and for a
positive purpose. It is contrary is based on the crude concept of power and its exercise for sectional bargaining which
may end up in mistrust, withholding of information and use of pressure tactics.

Job enlargement and job enrichment:

The purpose of job enlargement and job enrichment is to relieve the boredom of the worker which flows for
excessive specialization in mass-production industries so that the job itself may be a source of self-satisfaction. It’s do
provide for workers' participation because they offer and scope to them to use their judgment.

LIMITATIONS OF PARTICIPATION

1. Technology and organizations today are so complex that specialized to work-roles are required, making it
difficult for people to participate successfully if they go very far beyond their particular environment.
2. Another issue is an employee's right—not to participate. There is no evidence that participation is good for
everybody. Many people do not want to be both with participation.
3. Another problem is that participative situations a can be used covertly to manipulate an employees. This is
manipulation is not necessarily done by the management. It may be by the union or the undercover cliques
led by members skilled in group dynamics.
4. The feudalistic concept of the master and the servant is still prevalent among industrial workers, especially in
India. Workers have a feeling that they are born to serve and not to rule participative management, naturally,
is of little interest to such workers.
5. The role of trade unions in promoting participative management is far from satisfactory. Most of the unions
indulge in politicking and have little time to think and participation. The attitude of individual members, too,
is not conductive to the promotion of participative management.

55
EMPLOYEE DISCIPLINE

MEANING AND DEFINITION:

In simple words, the word discipline connotes orderly behavior by the members/employees. In other words,
discipline implies behaving in a desired manner. By that we mean the employees confirm to the rules and regulations
framed by the organization for an acceptable behavior. Following definitions of discipline will make its meaning
more clear.

According to Richard D. Calhoon, “Discipline may be considered as a force that prompts individuals of groups to
observe the rules, regulations and procedures which are deemed to be necessary for the effective functioning of an
organization”.

William R. Spreigel and Edward Schultz define discipline as “the force that prompts an individual or a group to
observe the rules, regulations and procedures which are deemed to be necessary to the attainment of an objective, it
is force or fear of force which restrains an individual or a group from doing things which are deemed to be
destructive of group objectives. It is also the exercise of restraint or the enforcement of penalties for the violation
of group regulations”.

Thus, discipline can now be defined as a condition in the organization when employees conduct themselves in
accordance with the organization’s rules and standards of acceptable harmonious in forwarding the end which the
group has in view”.

OBJECTIVES OF DISCIPLINE:

The objectives of discipline are to:

1. Motivate an employee to comply with the company’s performance standards: An employee receive
discipline after failing to meet some obligation of job. The failure could be either directly related to the tasks
performed by the employee or ignoring rules and regulations that define proper conduct at work.
2. Maintain respect and trust between the supervisor and employee: Discipline if not properly administered
can create problems like low morale, resentment, and ill will between the supervisor and employee. In such
case, improvement in employee’s behavior, if any, will be relatively short – lived and the supervisor will need
to discipline will not only improve employee behavior but will also minimize future disciplinary problems
through good relationship between the supervisor and the employee.
3. Improve the performance of the employee: Discipline for poor task performance should not be applied
while employees are on training or learning the job. Nor should employees be disciplined for problems
beyond their control, for example, failure to meet output standards due to the lack of raw materials. Yes,
discipline should be exercised when employees are found responsible for unsatisfactory performance.
4. Increase the morale and working efficiency of the employees.
5. Foster industrial peace which is the very foundation of industrial democracy.

CODE OF DISCIPLINE:

The Indian Labour Conference at its 15th session held at New Delhi in July 1957, after a long and hard discussion
(formulated) a ‘Code of Discipline’ for the purpose of maintaining discipline in the India industries – both private and
public sector industries. The principles laid down for governing discipline in the industries are classified into the three
broad categories. These are:

1. Mutual Agreement between Management and Union:

 There should be no strike or lock – out without due notice.
 There should not be unilateral action on either side.
 There should be no recourse to go slowdown.
 Industrial disputes, if any, should be settled utilizing existing machinery.
 Neither party should be indulged in the acts of violence, coercion or intimidation.
 Both parties would agree to set up a grievance procedure and should also abide by it.
 Both managers and employees should be properly educated about their duties, responsibilities and
obligations to the organizations.

56
 2. Agreement on the part of Management:
 Not to increase workload unless agreed upon or settled otherwise.
 Not to encourage unfair labour practices such as discrimination, coercion, victimization, etc.
 Take prompt actions to implement awards and agreements.
 Take immediate and appropriate disciplinary action against officers found guilty of precipitating
indiscipline among workers in the organizations.
 Recognize trade union in accordance with the criteria evolved at the 16th session of the Indian
Labour Conference held in May 1958

3. Agreement on the part of Trade Unions:

 Not to encourage or support any form of physical duress.
 Not to permit violent demonstrations and rowdy-ism.
 Not to encourage unfair labour practices such as negligence of duty, insubordination, go slow,
carelessness, etc.
 Take immediate action to implement awards, agreements, settlements, and decisions.
 Display at a prominent place the ‘Code of Discipline’ in the local language for the knowledge of
workers.
DISCIPINARY ACTIONS: PENALITIES AND PUNISHMENTS:

Discipline particularly positive discipline follows a typical sequence from mild to harsh: These vary from oral
warning, written notice, suspension, demotion, pay cut, and dismissal in that order. These six steps are the topics for
discussion in the session.

Oral Warning:

The mildest form of discipline is the oral warning. This is usually awarded on minor offences like late
coming, absenteeism, etc. which are committed for the first time. A common practice followed in this regard is to
make a temporary record of this warning and place the same in the employee’s file. Once the employee has shown
better performance and willingness to adhere to rules and regulations, the record of the oral reprimand is removed
from his file.

Written Notice:

The second step in order of severity in progressive discipline is the written notice or warning. This is
awarded for repeated minor offences or some major lapses. The procedure involved in written of the warning is the
same as the oral warning. The only difference is that the discussion concludes with the employee being told that a
written warning will be issued. Then, the manager writes up the warning. A copy of the warning is sent to the
personnel department. Like oral warning, organizations may allow employees to purge their personal file of these
warnings after some period of time, i.e. usually two years of proper work behavior.

Suspension:

Suspension, also called lay off, is the next logical step taken in progressive discipline. Suspension as
punishment is awarded for some major/serious offences. Suspension may be for a certain period ranging from one day
to several weeks or months. During the suspension period, the employee is paid a reduced pay known as ‘subsistence
allowance’. Full pay can be given if the suspensions are withdrawn.

However, suspension can have some implications for both the organization and the employee. For organization,
suspension means loss of the lay off period. It is particularly so if the suspended employee is a skilled one.
Nonetheless, one reason why management considers suspending employee is to give an awakening to the problem
employee.

Demotion:

For the serious offences where suspension has not been effective and management wants to avoid dismissal,
demotion is considered as an alternative punishment. It is noteworthy that, in contrast to the previous disciplinary
actions, demotion is not temporary, but a constant one. It has serious implications for employee morale and
motivation.

57
Pay Cut:

Another alternative, also rarely applied in practice, is cutting the problem employee’s pay. This is awarded mostly
when offence led to damage or loss of property. A part of the loss is recovered from such pay cut of the employee.

Dismissal / Discharge:

Dismissal is the ultimate disciplinary action taken against problem employee. This punishment is awarded only for
the most serious offences involving integrity. Both dismissal and discharge lead to employee separation from the
organization. However, the severity of punishment is more in dismissal and discharge. In case of dismissal, the
employee is deprived of service benefits such as gratuity, provident fund, pension, and other perquisites and even
disqualified for securing job in other organizations. As regards discharge, it is termination of employee’s job with
notice and with service benefits earned so far.

Both dismissal and discharge involve implications for employee such as emotional trauma, difficulty in securing
job elsewhere, etc... This may compel the dismissal employee to take legal action against the decision. Hence, a
dismissal as disciplinary action needs to be given a long and hard consideration. It is against this backdrop, some
statutory provisions have been made to handle with discipline.

 Delineate the procedure involved in a discipline action?

Meaning and definition to discipline:

In simple words, the word discipline connotes orderly behavior by the member/employees. In the words,
discipline implies behaving in a desired manner. By that we mean that employees confirm to the rules regulation
framed by the organization for an acceptable behavior. Following definitions of discipline will make its meaning more
clear.

According to Richard D. Calhoon, “discipline may be considered as a force that prompts individuals or
group to observe the rules, regulation and procedures which are deemed to be necessary for the effective
functioning of an organization”.

In the opinion of Ordway Tead,”Discipline is the order, member of an organization who adheres to its necessary
regulation because they desire to cooperate harmoniously in forwarding the end which the group has in view”.

FACTORS OF INDICIPLINE IN INDUSTRIES

DICIPLINE:

What is indiscipline? In simple words what is not discipline is ‘indiscipline’. indiscipline is also regulations
which is prejudicial to the interest of the employer or which is likely to impair the reputation of the employer, or
create un rest among other employees indiscipline can be created by the employees while on the job, off the job inside
organization or outside organization .it is therefore necessary for that manager to determine what constitute
indiscipline or misconduct

Based on indiscipline or misconduct divided in to three categories;

1. Minor infractions

2. Major infractions

3. Intolerable offences

MINOR INFRACTIONS:

These refer to actions which do either no harm or very little harm. Carelessness wage garnishment and
negligence are some are some of the examples of minor infractions yes accumulation of these may become serious in
due course of time

MAJOR INFRACTIONS:

The acts which damage morale such as cheating, lying, stealing refusal to carry out orders, etc. fall under the
major category infractions.
58
INTOLERABLE OFFENCES:

These refers to acts or drastic and illegal nature. examples of these offences acts are threat to use weapons use
of hard drugs on the job fighting smoking at the place where inflammables are kept.

Considering all activities of employees omissions and commissions which constitute indiscipline or
misconduct one can with little difficulty list a difficult of causes indiscipline .for simplicities make we have classified
the major ones into four brand categories

1. Attendence

2. On the job behaviour

3. Dishonesty and

4. Outside activities.

ATTENDENCE:

1. The attendance problem is much more serious and widespread than other problems such as carelessness
negligence violation of established rules and procedure.
2. Failure in aligning workers’ goals with of the organizations. Change in most of the employees’ attitude to
their employment considering the job work involving no more central life interest.
3. Change in the backgrounds of new entrance like rapid movement of minorities and women into the job
market. Employees preference to consumed earned leave, regardless of whether they really need or not.
4. Difficulty involved in firing employees because of union protection to them.

ON THE JOB BEHAVIOUR

1. These refer to employee’s behaviour evinced while on the job. This blanket level may include the actions of
the employees such as carelessness fighting gambling failure to use safety devices. In subordination, refusal to
obey orders, horseplay, etc.
2. In contrast to ambiguous infractions such as necessary leaves most of above actions of employees reflect
direct infractions and violations of the organizational rules and established rules and procedures.
3. Two of the most widely discussed disciplinary problems in organizations today are abuse of alcohol and
drugs.
4. Arriving at work drunk or consuming alcoholic drinks on the job is problem most of the organizations have
been experiencing for long time .of course many organizations now consider alcoholism a curable disease and
therefore have started programs to treat alcoholic employees .
5. That the use of drugs among the employees is on increase. With more and more employees experimenting and
drugs off the job the carryover of drug abuse onto the job expectedly on increase.

DISHONESTY:

1. It will not be less than correct to state that if honesty is the best policy, dishonesty of employees has
traditionally been one of the more widespread severe disciplinary actions found in organizations.
2. Stealing theft information falsification, etc. have been the common examples of employee dishonesty. An
employee who tells a lie or steals something even once is no more trusted.
3. Such instances often happen in our day today life also for examples evidence of such practice appears in the
media on an almost regular basis.
4. According to one study as many of 90% is surveyed organizations discharged an employee for the theft. Even
it was only a first offence. Similarly, 88%discharged those employees who were found to have a falsified
information of their employment application.
5. Azim premji suspended one of his executive for submitting the falls at bill.

OUTSIDE ACTIVITIES:

There are some activities of management also as considered by the employees. That create indiscipline in an
organizations. Included in these are:

59
 1. Weak flexible incompetent and distrustful leadership. Henry Fayol opines, “discipline is what the leaders
make it “.
2. Defective supervision due to absence of good and knowledgeable supervisors.
3. The “divide and rule” policy practiced by the management destroying team sprit among the employees.
4. Bad and unhealthy working conditions.
5. Discrimination based on caste, color, creed, sex, language, place etc. in matters like selection promotion,
penalty. Etc.
6. Improper coordination, delegation of authority, fixing of responsibility, etc.
7. Defective communication system.
8. Lack of timely redressed of employee grievances.
9. It seems pertinent to quote here the apt observation in the context of discipline made by the American
management association.

PROCEDURE OF DISCIPLINARY ACTION

Positive discipline is not just a simple act of supervisor discussing performance problems with an employee.
Rather, it is a procedure comprising a number of steps. Important steps in the procedure are:

1. Location of Responsibility
2. Define Performance Expectations
3. Communication of Policy, Procedures and Rules
4. Collection of Performance Data
5. Framing Charges and Intimation
6. Consideration of Explanation
7. Awarding Punishment
8. Follow up
These are briefly discussed in seriatim.

Location of responsibility:

The question: who should administer discipline is a subject to some debate. In one view, the responsibility for
administering discipline should fall on the shoulders of immediate supervisor of the employee. The reason being the
immediate supervisor is responsible for employee’s output. He/she also knows better about employee’s performance
problems.

The contrary opinion expressed in the regard is that discipline should be administered on an equitable and
uniform basis by the H R department. However, this approach has its drawbacks: first, the H R department must
spend inordinate amounts of the on disciplinary matters: second, the supervisor will lose some control over
subordinates.

In order to overcome the problem of where to place the responsibility for discipline, the supervisor oral
warning or a written notice. For serious situation involving discharge or suspending, the supervisor should consult
with H R representatives in order to administer such disciplines.

Define performance expectation:

A core ingredient in every disciplinary procedure is clearly defining the standard of behavior that management
expects from its employees. Employee standards of performance or behavior must be in conformity with the
organizational objectives. Obviously these standards need to be revised along with change in organizational goals and
objectives. Many organizational provide their employees with written principles of behavior in the form of ‘Employee
Manuals.’

Communication of policy, procedures and rules:

In order to maintain satisfactory levels of employee performances, the disciplinary policy, procedures and
rules formulated by organization need to be clearly communicated to the employees. Employee about their expected
behavior should be communicated through handbooks/manuals, orientation programmers, rules and regulation
distributed in writing to the employees or posted on bulletin boards.

Collection of performance data:

60
 Before an employee is discipline, it is of the utmost importance to prove that some rules, regulation or
standard is violated and, thus, unsatisfactory performance has taken place. Here, one problem is while collection of
performance data us easy, others are difficult. For example, an employee absence routinely recorded is rarely subject
to misinterpretation. However, there are some measure of performance such as ‘horseplay’, ‘insubordination’, and
abusive language to supervisor’, which are what subjective and difficult to record

Knowledge about concrete records of unsatisfactory performance of employee is considered important for
three reasons. First, the burden of proof lies with the manager or employer. This is based on the common law that a
person is innocent until proven guilty. Second, an employee if convinced with proof about his unsatisfactory
performance is more likely to improve his/her and the grievance reaches arbitration, the arbitrator may ask the
employer to supply the proof of employee misconduct or undesirable behavior.

Framing changes and intimation:

Once the prima fascia case of employee’s misconduct is established, the employer then issues a notice to
employee stating chares lebelled against him. Such a notice is generally known as a ‘show case notice, each charge
needs to be clearly specified. Also, the accused employee should be given an opportunity to explain his/her position.

Consideration of explanation:

On receipt of explanation from the accused employee, the management may consider any one of three type of
option available to it.

1. If the accused employee confesses the charge lebelled against him/her, the management can dispense any
further enquiry and award punishment to the accused employee.
2. In case management is satisfied with the explanation given by accused, the charged against him/her can be
cancelled and quashed.
3. If the management is not satisfied with the explanation give by the accused, the management can proceed to
further probing of the matter so that fact is established and appropriate action can be taken.

Awarding punishment:

Once the unsatisfactory performance of the accused is well established, the management then awards
punishment to the accused employee. As already mentioned, while awarding punishment, the management should
follow a procedure of ‘progressive discipline’.

Follow up:

The last step in the procedure of positive discipline is follow up. It means, once the punishment is awarded, it
is necessary to keep vigil whether the punishment has any salutary effect on the behavior and performance of the
accused employee or not. If not the corrective measures like corrective counseling should be introduced to improve
the accuser’s behavior.

61