HUMAN RESOURCE

MANAGEMENT
 HRM
 Management of work force of an
organisation ie how to manage the
different people working together in a
organisation.

 HRM is a management function that

helps managers recruit, train and
develop members for an organisation.
 HRM
 HRM is concerned with the people
dimension in management. Since every
organisation is made up of people,
acquiring their services, developing
their skills, motivating them to higher
level of performance, and ensuring that
they continue to maintain their
commitment to the organisation are
essential to achieving organisational
objectives. This is true, regardless of
the type of organisation ie government,
business, education, health.
 Objectives of HRM
 Societal objectives – To be socially responsible to
the needs of the society.

 Organisational Objective – To recognise the role of

HRM in bringing about organisational effectiveness.

 Functional objective – To maintain department’s

contribution at a level appropriate to the
organisation’s needs.

 Personal Objective – To assist employees in achieving

their personal goals, at least in so far as these goals
enhance the individual’s contribution to the
organisation.
 Objective of HRM
 HRM Obj. Supporting function
1. Legal compliance
Societal Objective 2. Benefits
3. Union Management relations

1. HRP
2. Employee relations
Organisational 3. Selection
Objectives 4. Training & Development
5. Appraisal
6. Placement
 Objectives of HRM
 HRM Obj. Supporting function

1. Placement
Functional objectives
2. Assessment

1.Training & Development

Personal Objectives
2. Compensation
 Competitive challenges and HR

1. Going global
2. Embracing new technology
3. Managing change and organisation
culture
4. Responding to the market
5. Containing costs
 Downsizing
 Outsourcing and employee leasing
 Enhancing productivity
 Other challenges faced
 Demographic and Employee concerns
 Demographic changes
 Diversity of backgrounds
 Age distributions
 Gender distribution
 Rising level of education
 Cultural changes
 Concern for employee rights
 Changing attitude towards work
 Balancing work and family
 Functions of HR

MANAGERIAL OPERATIVE
FUNCTIONS FUNCTIONS
Planning Staffing
Development
Organising
Compensation
Directing
Motivation
Controlling Maintenance
Integration
 Operative functions of HR

STAFFING Job analysis, HRP, Recruitment,

Selection, Placement, Induction,
Internal Mobility

Competency profiling, Training and

DEVELOPMENT development, Performance &
potential management, Career
management, 360 degree feedback

Job design, Work scheduling, Job

COMPENSATION evaluation, Compensation
& MOTIVATION administration, Incentives and
benefits
 Operative functions of HR (contd.)

Health, Safety, Welfare

MAINTENANCE

Employment relations, Grievance,

INTEGRATION Discipline, Trade unions,
Participation
 Scope of HRM
 Labour or Personnel aspect –
Recruitment, Selection, Transfer,
Promotion etc.
 Welfare aspect – Housing, Lunch room,
Health and Safety, Transport,
education etc.
 Industrial relation aspect – Union
Management relations, Negotiation,
Grievance handling etc.
HRM Environment - External

Technology

Professionalism Economic

HRM

Social & cultural Political & legal

Union
HRM Environment - Internal

Policies

HRM

Organisational
Mission
Conflict
 HRM Policies
 Policy – is predetermined course of action
established to guide the performance of work
towards accepted objectives.

 Importance -:

(1) Clear Thinking

(2)Uniformity & Consistency of Admin.
(3)Sence of Security
(4)Control
 Types of HR Policies
 Originated policies – Made by top
Management.
 Appealed policies – Made on request to handle
certain situation, or if certain aspects are
missing in the main policy.
 Imposed policies – Imposed by Govt & Legal
authorities.
 General policies – Do not relate any issue, may
represent the priority of Top Mgmt. (WPM).
 Specific Policy – Related to specific issues
like Recruitment, Transfer, Promotion etc.
 Strategic Management
 Strategy -: is a way of doing
something. It usually includes the
formulation of a goal and set of action
plans for accomplishment of that goal.

 Strategy has two components -:

1) Planning

2) Action
 Strategic Management

 Strategic management is understood as

the process of formulating,
implementing and evaluating business
strategies to achieve organisational
objectives.
 Analysis of the environment,
formulation of strategies, and
evaluation and control are the phases in
the strategic management process.
 Human Resource Planning
 Meaning – Assessment of Human Resource
Requirements & also the time & stages of
requirement.

 Right person ---At Right place ---At Right

time.

 Definition – HRP is defined as the process by

which management determines how an org
should move from its current manpower
position to its desired manpower position.
 Objectives of HRP
 To ensure optimum use of existing HR.
 To forecast future requirement for HR.
 To provide control measures to ensure
that necessary HR are available as and
when required.
 To asses the surplus and shortage of
HR. (Downsizing).
 To anticipate the impact of technology
on jobs and HR.
 Objectives of HRP – Contd.
 To determine the level of Recruitment
and Training.
 To estimate the cost of HR and Housing
needs of employees. (Or HRA).
 To provide the basis of MDP.
 To meet the needs of expansion and
diversification programmes.
 Importance of HRP
 Future Personnel needs

 Creating highly talented personnel

 International Strategies

 Foundation of personnel function

 Resistance to change and move

Factors Affecting HRP
Organisational
growth cycle
& planning

Environmental
Outsourcing HRP
Uncertainties

Strategy of
Organisation
 Factors Affecting HRP
 Organisation growth cycle and planning-:

HRP is Critical when organisation enters

the growth stage.

Mature organisations experiences less

flexibility and variability, growth slows
down. HRP is dominated by Layoffs,
Retrenchment, Retirements.
 Factors Affecting HRP
 Environmental Uncertainties -:

When Political, Social and other changes

affect the organisation, HR planners
deal with uncertainties.

It can result in Recruitment, Training,

Succession Planning, Retrenchment etc.
 Factors Affecting HRP
 Strategy of Organisation -:
Strategic plan of the organisation defines the
organisation’s HR needs.

Internal Growth Growth through Mergers

Narrow Broad

Informal Formal

Reactive Proactive

Inflexible Flexible
 Factors Affecting HRP
 Outsourcing -:

Most organisations have surplus labour

and they do not want to worsen the
problem by hiring more people.

Outsourcing is the option left.

 HRP Process
Environment

Org objectives & policies

HR Need Forecast HR Supply Forecast

HR Programming

HRP Implementation

Control & Evaluation

Surplus Shortage
 HRP Process (Contd.)
 Environmental Scanning - :

1) Economic factors
2) Technological Changes
3) Demographic changes
4) Political and legislative issues
5) Social concerns
 HRP Process (Contd.)
 Org objectives and policies-:

 HR plans need to be based on org

objectives, this implies that the
objectives of the HR plan must be
derived from Org objectives.
 HRP Process (Contd.)
 HR Demand forecast-:

 The process of estimating the future quantity

and quality of people required.
 The basis of forecast will be annual budget
and long term corporate plans.
 Demand forecasting must consider several
factors like internal (Budget constraints,
employee separations, production level) and
external (Competition, laws, change in
technology).
 HRP Process (Contd.)
 Demand forecasting techniques are-:
 Managerial judgment
 Ratio trend analysis
 Delphi technique
 Regression analysis

 HR Supply forecasting-:

 Supply forecasting measures the number of

people likely to be available from within and
outside an org.
 HRP Process (contd.)
 HR Programming-:
 Once the Org’s HR Demand and Supply
are forecast, the two must be
reconciled or balanced in order that
vacancies can be filled by the right
employee at the right time.

 HR Plan Implementation-:
 Implementation requires converting an
HR plans into action. (Recruitment,
Training, Succession plan etc.)
 HRP Process (contd.)
 Control and Evaluation -:
Critical to have proper control and
regular checks to know the
achievements of HRP.

Surplus Shortage

Restricted hiring R&S

VRS, Lay off
 HRIS

 HRIS is a database system that keeps

important information about employees
in a central and accessible location.

 The information provided by HRIS can

help the organisation to gain
competitive advantage. (SWOT of org.)
Information categories of HRIS
 Basic non confidential information-:

Employee name, Org name, Work

location

 General non confidential information -:

Social security number, Position related

information (codes, tittles, effective
date)
Info categories of HRIS (contd.)

 General information with salary -:

Current salary, Effective date, Amount
of last change, Reason for last change.

 Confidential information with salary -:

Information of previous category,

Educational data
Info categories of HRIS (contd.)

 Extended information with salary -:

Information of previous category, Bonus

information, Projected salary increase
information, Performance evaluation
information.
 Job Analysis
 Job analysis is the process of collecting
job related information. Such
information helps in the preparation of
job description and job specification.

Job Analysis

Job Description Job Specification

 Job Analysis (contd.)
 Job description -: A statement
containing items such as Job title,
Location, Job summary, Working
condition etc.
 Job specification -: A Statement of
human qualifications necessary to do
the job. Usually contains items such as
Education, Experience, Training,
Communication skills etc.
 Purposes of Job Analysis

 HRP
 Recruitment & Selection
 Training & Development
 Remuneration
 Safety & Health
 Performance Appraisal
 Methods of Collecting Job Data

 Observation
 Interviews
 Questionnaire
 Technical Conference Method
Process of Job Analysis
Strategic Choices

Gather Information

Process Information

Job Description

Job Specification
 Process (contd.)
 Strategic Choices –:
1. Employee Involvement
2. Level of Details
3. When and How often
4. Past oriented and Future oriented

 Gather Information –:
1. What type of Data to Collected (machine,
tools & work activities)
2. Data collection methods
3. Who to collect Data (Trained analyst,
Supervisors, Job incumbents)
 Process (contd.)
 Information Processing -:
How collected information will be used
in forming Job Description and Job
Specification.

 Job description –:

 Job Specification -:
 Problems with Job Analysis
 Support from Top management

 Single Means or Source

 No Training or Motivation

 Activities may be Distorted

 Job Design

 Job Design is defines as -: It integrates

work content (tasks, function), the
rewards & the qualifications required
(skills, knowledge) for each job in a way
that meets the need of the employees
and the organisation.
 Job Design
 Job Design involves three steps -:

1) Specification of individual tasks.

2) Specification of the methods of

performing each tasks.

3) Combination of tasks into specific jobs

to be assigned to individuals.
 Methods of Job Design
Job Design Methods -:
Job
Rotation

Job Job Job

Simplification Design Enlargement

Job
Enrichment
 Recruitment
 The process of finding and attracting
capable applicants for employment. The
process begins when new recruits are
sought and ends when their applications
are submitted. The result is a pool of
applicants from which new employees
are selected.
 Recruitment is a process of inviting
applications from prospective
employees.
 Recruitment is a positive process.
 Purpose & Importance of
Recruitment
 Determine the present and future
requirements of the organisation in
relation with the HRP and Job Analysis.

 Increase the pool of job candidates at

minimum cost.

 Meet the organisation’s legal and social

obligations regarding the composition of
its workforce.
 Sources of Recruitment
 Internal Sources -:
Transfer , Promotions.

 External Sources-:
Press Advertisements , Educational
Institutions, Placement Agencies,
Employment Exchange, Labour
Contractors, Recruitment at factory
Gate.
 Recruitment Process
Recruiting Required Personnel

Search for Perspective Employees

Internal Sources

External Sources

Evaluating effectiveness of process

 Recruitment Process
 Personnel Requisition -: Requisition for
recruitment from other deptt., Contains
info like no of person required, duties to
be performed, desired qualification,
time of appointment, info about job.
 Locating and developing sources of
required no and type of employees.
 Identifying the prospective employees
with required characteristics.
 Process (contd.)
 Communicating the info about the org,
the job and the terms and condition of
service.
 Encouraging the identified candidates
to apply for jobs in the org.
 Evaluating the effectiveness of
recruitment process.
 Alternatives to Recruitment
 Overtime

 Employee Leasing

 Temporary Employment
 Selection
 Selection is the process of picking
individuals (out of the pool of job
applicants) with requisite qualifications
and competence to fill jobs in the
organisation.

 Selection is a negetive process.

 Selection Procedure
 Preliminary Interview
 Application blank
 Selection Test
 Employment Interview
 Reference Check and Background
Analysis
 Medical Examination
 Final Approval
 Evaluation
 Test and Interview
 Psychological tests -: Aptitude test

 Informal Interview
 Formal Interview
 Depth Interview
 Stress Interview
 Induction Or Orientation
 Planned introduction of employees to
their jobs, their co – workers and the
organisation.

 Orientation also called Induction, is

designed to provide a new employee with
the information he or she needs to
function comfortably and effectively in
the organisation.
 Objectives of Induction
 To help new comer overcome his natural
shyness and nervousness in meeting new
people in the environment.
 To develop among the newcomers a
sense of belonging and loyalty to the
organisation.
 To develop a close and cordial
relationship between newcomers and the
old employees and their supervisor.
 Objectives (contd.)
 To ensure that the newcomers do not
form negative or false impression and
attitude towards the organisation or
the job because first impression is the
last impression.
 To give newcomers necessary
information such as leave rules, rest
period, locker room etc.
 Advantages of Formal Induction
 Helps in build up a two way channel of
communication between management and
workers.
 Proper induction facilitates informal
relations and teamwork among
employees.
 Effective induction helps to integrate
the new employees into the organisation
and to develop the sense of belonging.
 Types of Induction Programme
 Formal
 Informal
 Individual
 collective
Contents of Induction Programme
 History and operation of company
 Products and services of company
 Policies and procedures of company
 Grievance procedure
 Benefit and services for employees
 Opportunities for training and
development, promotion, transfer etc.
 Placement

 Placement refers to the allocation of

people to jobs. It includes initial
assignment of new employees and
promotion, transfer, or demotion of
present employees.
 Placement Problems
 Difficulty with the placement is that
we tend to look at the individual but
not at the job.

 Job in this context may be classified

into three categories.
1. Independent
2. Sequential
3. Pooled
 Training & Development

 Training is an attempt to improve

current or future employee
performance by increasing an employees
ability to perform through learning,
usually by changing the employee’s
attitude or increasing his or her skills
and knowledge.
 Training refers to the process of
imparting specific skills. (Employees)
 T&D

 Development refers to learning

opportunities designed to help
employees grow. (Executive)

 Education is theoretical learning in

classroom.
 T&D
 The need for training and development
is determined by the employee’s
performance deficiency computed as
follows-:

Training & Development need = Standard

Performance – Actual Performance
 Difference between T & Edu
 Training -:
1. Application base,
2.Job Experience,
3. Specific Task,
4. Narrow Perspective.

 Education -:
1.Theoretical Orientation,
2. Classroom learning,
3. General Concepts,
4. Broad Perspective.
 Inputs in T & D

 Skills
 Education
 Development
 Ethics
 Attitudinal Changes
 Decision making and Problem solving
skills
 T & D as a source of Competitive
Advantage

 T & D offer competitive advantage to a

firm by removing performance
deficiencies, making staff stay long,
minimising accidents, Scrap & damage
and meeting future employees needs.
 Training Program

Need Assessment

Deriving Instructional Objectives

Designing Training & Development Program

Implementation of Training Program

Evaluation
 Training Process
 Need Assessment -: Diagnoses the present
problems & future challenges to be met
through training and development.

 Need Assessment Methods -: As follows

 Group Assessment – (intro of new product.)
1. Org goals & objectives.
2. Personnel skill inventories
3. Exit interviews
4. Customers Satisfaction data
 Training Process
 Needs Assessment & Remedial measures
Performance
Deficiency

Lack of Skill &

Other Causes
Knowledge

Non – Training
Training Measures
 Training process
 Individual Analysis -:
1. Performance Appraisal
2. Interviews
3. Questionnaires
4. Attitude Surveys.

 Issues in need assessment -:

1. Org Support
2. Org Analysis
3. Task and KSA analysis
4. Person Analysis
 Training Process
 Deriving an instructional objectives -:
It help to know the inputs for the training
program and as well as for the measures of
success that would help assess effectiveness
of the training program.
 Designing training & development program -:
1. Who are the trainees?
2. Who are the trainers?
3. Methods & techniques?
4. Level of training?
5. Learning principles?
6. Where to conduct the program?
 Training process
 Implementation of training program

 Evaluation
 Types of training
 On the job -:
1. Orientation Training ie Induction
2. Job instruction – Info about how to
conduct the job.
3. Apprentice training - ITI
4. Internship / Assistantship - Doctors
5. Job rotation - Bank
6. Coaching – Cricket team
 Types of training
 Off the job -:
1. Vestibule – Utilisation of actual equipments.
2. Lecture – Verbal presentation of
information.
3. Role playing – is to create realistic situation.
4. Simulation – technique that duplicates as
nearly as possible actual condition
encountered on the job.
5. Laboratory / Sensitivity training – smaller
group ie 12 or less. Provides awareness
about their own behaviour & how other
percieve them.
 Performance Appraisal

 It is the systematic evaluation of the

individual with respect to his or her
performance on the job and his or her
potential for development.
Objectives of Performance Appraisal
 Promotions based on competence and
performance.

 To confirm the services of probationary

employees upon their completing the
probationary period satisfactorily.

 To asses the training and development

needs of employees.
Objective of Performance Appraisal
 To decide upon pay rise where regular
pay scales have not been fixed.

 Finally, performance Appraisal can be

used to determine whether HR
programmes such as selection, training
and transfers have been effective or
not.
 Relationship of PA and Job Analysis
 Job Analysis – Describe work and
Personnel requirement of a particular
job.
 Performance Standards – Translate job
requirements into levels of acceptable
or unacceptable performance.
 Performance Appraisal – Describes the
job relevant strengths and weaknesses
of each individual.
 PA and Competitive Advantage
 Improving Performance

 Making Correct decisions

 Minimizing job dissatisfaction and turn

over

 Consistency between organizational

strategy
Performance Appraisal process
Objective of Performance Appraisal

Establish Job expectations

Design an Appraisal Programme

Appraise Performance

Performance Interview

Use Appraisal Data for Appropriate Purposes

 P A Process
 Objective – Correct or Improve performance
 Expectation – In forming what is expected
from employee
 Design Appraisal – Helps in posing question
which needs answers like Formal v/s Informal
Appraisal, whose performance should be rated
(group, team, individual), Who are Raters,
What should be rated (Quality, Quantity,
Time, Cost effectiveness, Need For
Supervision), When to Evaluate, What
Methods to be opted.
 P A Process
 Appraise the Performance – Quantity,
Quality and time of Output.
 Performance Interview
 Use the Appraisal Data – HRP,
Promotion, Remuneration, Training and
Development etc.
 Performance Appraisal Methods
 90 Degree – Only Supervisor is
Evaluator.
 180 Degree – Superior and Peer Group
 270 degree – Superior, Peer and
Subordinates
 360 Degree – Superior, Peer,
Subordinates, Clients and Self
 540 Degree - Superior, Peer,
Subordinates, Clients and Self
 720 Degree - Superior, Peer,
Subordinates, Clients, Self and Family
 Performance Appraisal Methods
 Past Oriented Methods - :
 Rating Scales – Excellent-Good-Acceptable-
Fair-Poor (Simplest & most popular)
 Checklist – Yes / No (Is employee interested
in job? Does have adequate qualification?)
 Forced Choice Method – Two Choices and no
other option (The rater is forced to select
statements which are readymade) Learns fast
----- Work hard.
 Critical Incident Method – this approach
focuses on certain critical behaviours of an
employee
 Performance Appraisal Methods
 Behaviourally Anchored Rating Scales –
On the basis of the behavioural criteria
of the employee rating is being done by
the superior.
 Field Review Method – Some one outside
the assessee’s own department, usually
from corporate office or HR
department.
 Future Oriented Methods
 360 Degree Appraisal
 Assessment Centers (Potential
Appraisal)
 Psychological Counseling
 Problems in Performance Appraisal

 Leniency or Severity
 Central Tendency
 Halo Error
 Rater Effect – Rating based on raters
attitude towards ratee
 Primacy or Recency effects
 Perceptual Set – Raters perception
 Job Evaluation
 Job evaluation seeks to determine the
relative worth of each job so that
salary differentials can be established.

 In job evaluation only jobs are rated

unlike in performance appraisal where
only job holders are rated.
 Job Evaluation Process
Objectives of Job Evaluation

Job Analysis

Job Description Job Specification

Job Evaluation Programme

Wage Survey

Employee Classification
 Methods of Job Evaluation

 Non Analytical Methods

 Analytical Methods
 Non Analytical method
 Ranking Method – The evaluation
committee assesses the worth of each
job on the basis of its title or on its
contents, if the later is available.

 Job Grading Method – There is a

yardstick in the form of job classes or
grades.
 Compensation
 Remuneration is the compensation an
employee receives in return for his or
her contribution to the organisation.
 Society – Some people see pay as a
measure of justice.
 Stockholders – To stockholders,
executive pay is of special interest, as
linking executive pay to company
performance is supposed to increase
stockholders wealth.
 Compensation
 Managers – Compensation influences
their success in two ways. First, it is a
major expense. In addition to treating
it as an expense, a manager also uses it
to influence employee behaviour and
improve organisation performance.
 Employees – The pay individuals receive
in return for the work they perform is
usually the major source of their
financial security.
 Components of Compensation
 Financial – :
1. Hourly and monthly rated wage and
salary.
2. Incentives ie individual plans and group
plans.
3. Fringe benefits ie PF , Gratuity,
Medical care, Group Insurance.
4. Perquisites are Company car, furnished
house (Offered to retain competent
executives)
 Components of Compensation
 Non Financial -: Recognition, Growth
Prospects.
 Factors Influencing Employee
Remuneration
 External -:
1. Labour Market – Demand & Supply,
Going Rate
2. Cost of Living – Escalatory clause
3. Labour Unions
4. Labour Laws – Payment of wages
act1936, Minimum wages act 1948,
Payment of Bonus act 1965, Equal
remuneration act 1976, Payment of
gratuity act 1972.
5. Society
 Factors Influences Employee
Remuneration

 Internal -:

1. Business Strategy – Rapid growth =

High Pay
2. Job Evaluation and Performance
Appraisal
3. Employee – Performance , Experience,
Seniority
Devising a Remuneration Plan
Job Description

Job Evaluation

Job Hierarchy

Pay Survey

Pricing jobs
 Challenges of Remuneration
 Salary reviews
 Pay secrecy
 Skill based pay
 Employee Participation
 Above Market or Below Market Rates
 Monetary V/S Non Monetary Rewards
 Comparable Worth
 Concept of Wages
 Minimum Wage – Wage for sustenance of life
plus for preservation of the efficiency of
worker. (Determined through Legislation)
 Fair Wage – Equal to the rate prevailing in the
same trade and in the neighborhood or equal
to the predominant rate for similar work
throughout the country.
 Living Wage – Higher than fair wage. Provides
for bare essentials plus frugal comforts.
 Incentives

 Incentives are variable rewards granted

to employees according to variations in
their performance. The other name for
incentives is “Payments by results”. But
the word ‘Incentives’ is most
appropriate because of its motivational
content.
 Importance of Incentives
 Motivation of worker for higher
efficiency and greater output.
 Earning of employees would be enhanced
due to incentives.
 Increased earning helps employee to
improve standard of living.
 Other advantages – Reduced
Supervision, better utilisation of
equipments, reduced lost time, reduced
absenteeism and turnover and increased
output.
 Disadvantages of Incentives
 Deteriorate the quality of product as
employee want to earn more by producing
more quantity of products.
 When job is restudied there are chances that
it may yield in lower earning in terms of
earning incentives as new and high challenging
jobs offers more scope for earning as
compared to old jobs.
 Increases jealousy among the workers as the
person earning less is jealous of the person
earning more.
 Employee benefits

 Employee benefits and services include

any benefits that the employee receives
in addition to direct remuneration.

 Employee benefits and services are

alternatively known as fringes or hidden
payroll.
 Types of employee benefits

 For fringe benefits three criteria’s

are needed to be fulfilled.
1) It should be computable in terms of
money.
2) The amount of benefit is not generally
predetermined.
3) No contract, indicating when the sum
is payable, should exists.
 Fringe benefits
 Legally required payments -: Old age,
survivors, disability and health
insurance.
 Contingent benefits -: pension plans,
group life insurance, group health
insurance, maternity leave, sick leave,
service awards.
 Other benefits -: payments for the time
not worked like holidays, leaves.
 Benefits and services

 Treats -: free lunches, festival bashes,

dinner for the family.
 Awards -: trophies, certificates, letter
of appreciation.
 Office environment -: flexible hours.
 Tokens -: movie tickets, vacation trips.
 On the job -: job rotation, representing
the company at public meetings.
Administration of fringe benefits
Establish benefits objectives

Assess environmental factors

Access competitiveness

Communicate benefit information

Control benefit cost and evaluation

 Executive remuneration

 Components of remuneration -:
1) Salary
2) Bonus
3) Commission
4) Long term incentives
5) Perks
 Industrial Relations

 IR is concerned with the system , rules

and procedures used by unions and
employers to determine the reward for
effort and their conditions of
employment, to protect the interest of
the employed and their employers, and
to regulate the ways in which employers
treat their employees.
 IR cont’d
 IR is concerned with the relationship
between management and workers and the
role of regulatory mechanism in resolving
any industrial dispute.

 IR specially covers the following areas-:

1) Collective bargaining
2) Role of management , unions and govt.
3) Machinery for resolution of industrial
dispute
4) Individual grievance and disciplinary policy
and practice
 Approaches to IR
 Unitary Approach – Direct negotiation with
employee and participation of Govt. Tribunals,
and unions are not sought.
 Pluralistic Approach – (a) org as coalitions of
competing interest, where the management’s
role is to mediate amongst the different
interest group.
(b) TU are legitimate representatives of
employee interest.
(c) Stability in IR is a product of concession and
compromises between management and unions.
 Approaches to IR

 Marxist Approach – same as Pluralistic

but feels conflict arises not because of
rift between management and workers,
but because of the division in the
society between those who own
resources and who have only labour to
offer.
 Parties to IR
 Employees
 Employee Associations
 Government

Employer – Employee – Relations

 Employers
 Employer Associations
 Courts and Tribunals
 Trade Unions

 TU are voluntary organisations of

employees or employers formed to
promote and protect their interest
through collective action. Though the
terms employees and employers are
used, when we say trade unions they
generally refer to employees.
 Why do employees join unions?

 Dissatisfaction

 Lack of power

 Union Instrumentality
 Union Tactics
 Unions employ several tactics to deal
with management are-:

1) Strike
2) Invoking political patronage
3) Blackmailing
4) Unionising
 Strategic choices before
Management

 Mgmt must decide whether the org should

remain union free or allow unionisation.
 If mgmt decide company should remain union
free then they must take steps to keep union
away from the org.
 If unionisation should be allowed, managers
must decide what type of union mgmt
relations they want.
 Mgmt must also choose the type of tactic to
use while negotiating a new wage settlement.
Strategic choices before Unions

 Bread and Butter V/S Political objective

 Adversarial V/S Co operative role

 Traditional issues V/S New services

Strategies and Tactics for remaining
Union - Free

 Effective supervision
 Open communication
 Effective personnel search
 Healthy and Safe working environment
 Effective Employer and Employee
relations
 Effective remmuneration
Some of the major Trade Unions

 INTUC – Indian National Trade Union

Congress
 CITU – Centre of Indian Trade Unions
 HMS – Hind Mazdoor Sabha
 AITUC – All India Trade Union Congress
 BMS – Bhartiya Mazdoor Sangh
 UTUC – United Trade Union Congress
 Disputes and Their Resolution

 Acc to Industrial Dispute Act, 1947,

industrial dispute mean any dispute or
difference between employers and
employers or between employers and
workmen, workmen and workmen, which
is connected with the employment or
non employment or terms of
employment.
 Causes of Disputes
 Wage Demands

 Union Rivalry (Singareni Collieries - 445

TU – loss 3.12 million tones)

 Political Interference (ideology differs,

union works on party lines, CITU-
Communist love to fight but hate to win
so they have not signed any settlement
in last 15 years)
 Causes of Disputes
 Unfair Labour Practice - :
a) Management unwillingness to recognise
a particular TU and dilatory tactics.
b) Negotiation of settlement of dispute
the representatives of employers take
the side of management which results
in disputes.
 Multiplicity of Labour Laws
 Settlement of Disputes

 Collective Bargaining (reps of employees &

employers meet to solve the issue)
 Collective Bargaining Process-:
a) Preparing for negotiation
b) Identifying bargaining issues
c) Negotiations
d) Reaching the agreement
e) Ratifying the agreement
f) Administration of agreement
 Settlement Cont’d.
 Collective Bargaining takes place when
representatives of trade union meet
management representatives to
determine employee wages and benefits
and to solve other issues.

 Collective Bargaining is the most

effective method of resolving industrial
disputes.
 Settlement of Disputes
 Grievance Procedure
 Arbitration
 Conciliation
 Adjudication
 Consultative Machinery
 Settlement Cont’d.
 Grievance Procedure -:

Stage One (Sectional Head) 5 days

Stage two (Deptt Head) 5 days

Stage Three (Divisional Head) 10 days

Fourth Stage (Union)

 Settlement Cont’d
 Arbitrations refers to the procedure in which
a neutral third party studies the dispute,
listen to both the parties and collects the
information , and make recommendations
which are binding on both the parties.

 Conciliation -: As per the Industrial Dispute

act 1947, Sec 4, says that the govt shall
appoint conciliation officers and their main
duty is to mediate and promote settlement of
Industrial Dispute.
 Settlement Cont’d

 Adjudication a mandatory settlement of

Industrial Dispute by a labour court or
Tribunal.

 Consultative Machinery
 Safety and Health
There is a saying

“ Precaution is always better than cure”.

 Safety and Health
Bhopal Gas Tragedy
23 years ago, there was a gas leak from
a Union Carbide plant which led to killing
over 20000 thousands of people in
Bhopal and become the worst industrial
accident in India due to negligence of
proper safety features. Survivors still
suffer from various diseases and
battling for life and waiting for their
turn to get compensated.
 Safety and Health
 Major Accident in last decade (India)-:
1) Bhopal gas leak in December 1984.
2) Delhi gas leak from Sriram foods and
fertilizers in December 1985.
3) Gwalior blast at a dyeing department of
GRASIM in December 1991.
4) Khalgaon boiler explosion in NTPC in
October 1992.
5) Mumbai ONGC’s helicopter crash in the
offshore Heera Panna oilfield’s Neelam
area in August 2003.
 Safety and Health
 Major International accident-:

1) NASA – Columbia space shuttle broke

apart during reentry on Feb 1, 2003.
Wing damage sustained during launch by
a chunk of fuel tank insulation was cited
as the accident cause.
 Safety and Health
 Safety -: refers to the absence of
accidents. Stated differently, safety
refers to the protection of workers
from the danger of accidents.

 Research says “ Every twenty seconds

of working minute of every hour
throughout the World, someone dies as
a result of an industrial accident”.
 Safety and Health
 Types of accidents -:
Accidents

Internal External

Major Minor

Fatal Disability
 Safety and Health

Disability

Temporary Permanent

Partial Total Partial Total

 Safety and Health
 Internal – If a bone is fracture which
cant be seen and judged from open eyes.
 External – wounds which are seen
through our open eyes.
 Major – Accidents results in death or
results in prolonged injury.
 Minor – A scratch or injury does not
seriously disable.
 Temporary – If a person recovers
disability from which he can recover
fully after certain period.
 Safety and Health
 Permanent – Any injury which
permanently disabled the person.
 Safety and Health
 Need for safety -:
1) Cost saving – Direct cost ie
compensation and Indirect cost ie loss
of production, damages of equipment,
wastage of time.
2) Increased productivity – Safety
promotes productivity, employees feel
safe and produce good quality and
quantity.
 Safety and Health
3) Moral – Providing safety to the
employee has moral dimension, in
addition to being a legal requirement. An
employer has no right to cause accident
to an employee which might kill the
person. Monetary compensation does not
bring the person back as a healthy
individual.

Can monetary compensation be a

substitute for person?
 Safety and Health
4) Legal – Supreme court says “ An
enterprise which is engaged in a
hazardous dangerously industry which
poses a potential threat to the health
and safety of the persons working in
the factory or industry must ensure
that neither the workers nor the
society suffers any kind of damages” .
All safety related requirements to be
fulfilled by the industry as legal
requirement before start of work.
 Safety and Health
 Safety Program -:
Safety program deals with the prevention of
accidents and with minimising the resulting
loss and damage to person and property.
Five principles that govern the safety
program of an organisation are -:
1) Industrial accidents are a the result of
multiple factors. So these factors have to be
traced to their root causes, which are usually
falls in the management system arising from
poor leadership from top, inadequate
supervision, no attention to design safety
system.
 Safety and Health
2) The most important function of safety
programmes is to identify potential hazards,
provide effective remedial actions.
This is possible only if there are -:
a) Effective system for reporting all accidents
causing damage or injury.
b) Adequate accidents records.
c) Systematic procedures for carrying out
safety checks, inspections.
d) Methods of ensuring that safety equipment
is maintained.
 Safety and Health
3) Safety policy of the organisation should be
determined by the top management and it
must continuously involved in monitoring
safety performance.
4) The management and supervision must be
made fully accountable for safety
performance in the working areas they
control.
5) All employees should be given thorough
training in safe methods of work and they
should get regular guidance on eleminating
safety hazards.
 Safety and Health
 Safety Process -:
Strategic choices

development of safety policy

Organisation for safety

Analysis of causes of accidents

Implementation of program

Evaluation of effectiveness
 Safety and Health
 Strategic choices – Management must make
decision regarding safety of their workers.
Some strategic choices are-:
1) Must determine the level of protection.
Some co because of financial constraints
prefer low level.
2) Must decide whether a safety program will
be formal or informal. Formal have written
regulation & carefully monitored. Informal
are enforced because of pressure and
include good training.
 Safety and Health
3) Management can be proactive or
reactive.
4) Management can use safety of workers
as a marketing tool of the organisation.
 Safety and Health
 Health - : The well being of the employees in
an industrial establishment is affected by
accidents and by ill health – physical as well
as mental.
 Health in Industry can be discussed through
following angles-:
1) Physical health
2) Mental health
3) Noise control
4) Stress management
5) Violence at work place
 Safety and Health
 Health hazards -:
Health hazards Causes

Lung cancer oven emissions, smokes

Leukemia Radiation
Reproductive problems Radiation
Vision Chemical fumes, Office equip.
Hearing High noise level
 Safety and Health
 Mental health -: Specially at executive
cadre. Three reasons for this
development are mental breakdowns
because of pressure & tensions. Mental
disturbances because of reduced
productivity & lower profits. Mental
illness alcoholism & poor human
relations.
 Safety and Health
 Noise Control -: Noise can only be
minimised but can not be totally
eliminated. Constant exposure to noise
not only effects hearing ability but also
effect the general health of the
employees.
 Safety and Health
 Work stress -: refers to an individuals
response to a disturbing factor in the
environment . Stress is mostly
understood to be negative, but it has
positive dimension also. When stress
brings out something better from an
individual, it is called eustress.
 Violence at work place -: