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Hr ppt

  1. 1. Human Resource management
  2. 2. Definition • “Human Resource management is a series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organisations and the employees to achieve their objectives”.
  3. 3. Importance of Human resource management • • • • • • • • • Human resources planning Job analysis design Recruitment and selection Orientation and induction Training and development Performance appraisal Compensation planning and remuneration Motivation, welfare, health and safety Industrial relations
  4. 4. Objectives of Human Resource Management • Resource utilization • Facilitates professional growth • Better relations between union and management • Helps an individual to work in a team/group • Identifies person for the future • Allocating the jobs to the right person • Improves the economy
  5. 5. Qualities of good personal manager • • • • • • • Policy Initiator and Formulator Advisor Problem Solver Mediator Well-wisher Representative Decision-maker Problem Solver
  6. 6. Evaluation of HRM in India
  7. 7. Human Resource Policy • A policy is a statement or general understanding which provides guidelines to members of the organisation for making decision in respect to any course of action. • The organisation is required to formulate policies in different areas which are necessary for achieving organisational goals. • HR policies provide guidelines for a variety of employment relationships and identify the organisation intentions in recruitment, selection, development, promotion, compensation, motivation and integration of human resource.
  8. 8. Needs of HR Policy • A policy provides guidelines to the members of the organisation for deciding a course of action and, thus restricts their freedom to action. • Policy provides and explains what a member should do rather than what he is doing. • A policy limits an area within which a decision is to be made and assures that the decision will consistent with and contributive to objectives. • Policies are generally expressed in qualitative, conditional, or general way.
  9. 9. Objectives of HR Policy • To enable the organisation to have adequate, competent and trained personnel at all level. • To provide such conditions of employment that enables the personnel to develop a sincere sense of unity with the organisation and to carry out their duties in most willing and effective manner; • To provide and create a sense of responsibilities on the part of those who directly deal with human resources to adopt a humanistic approach with a guaranteed protection of the fundamental rights of the employees and their dignity. • To develop conditions for mutual trust and cooperation between those who mange and those who are managed at all level of the organisation.
  10. 10. Scope of HR Polices • Acquisition of Personnel • Training and Development • HR Mobility • Working conditions and work schedules • Industrial Relations
  11. 11. Formulation of HR Policies
  12. 12. Types of HR Policies Overall HR policy • The overall HR policy defines how the organization fulfils its social responsibilities for its employees and sets out its attitudes towards them. It is an expression of its values or beliefs about how people should be treated. Specific HR policies • Specific HR policies cover age and employment, AIDS, bullying, discipline, e-mails and the internet, employee development, employee relations, employee voice, employment, equal opportunity, grievances, health and safety, managing diversity, promotion, redundancy, reward, sexual harassment, substance abuse and work–life balance.
  13. 13. Advantages of written policies • Recruitment and Selection • Training and Professional Development • Handling Employee Concerns • Workplace Safety • Organizational Structure • Employment Rules
  14. 14. Human Resources policies and work Culture • We are an equal opportunity employer. This means that we do not permit direct or indirect discrimination against any employee on the grounds of race, nationality, sex, sexual orientation, disability, religion, marital status or age. • Direct discrimination takes place when a person is treated less favorably than others are, or would be, treated in similar circumstances. • Indirect discrimination takes place when, whether intentionally or not, a condition is applied that adversely affects a considerable proportion of people of one race, nationality, sex, sexual orientation, religion or marital status, those with disabilities, or older employees.
  15. 15. Human Resources policies and work Culture • The firm will ensure that equal opportunity principles are applied in all its HR policies, and in particular to the procedures relating to the recruitment, training, development and promotion of its employees. • Where appropriate and where permissible under the relevant legislation and codes of practice, employees of underrepresented groups will be given positive training and encouragement to achieve equal opportunity.
  16. 16. Human Resource Planning • A process of systematically reviewing human resource needs to ensure that the required number of employees, with the required skills, experience and competencies, is available for the right jobs at the right time at the right cost.
  17. 17. Reasons for engaging in human resource planning • Planning for substantive reasons, that is, to have a practical effect by optimizing the use of resources and/or making them more flexible, acquiring and nurturing skills that take time to develop, identifying potential problems and minimizing the chances of making a bad decision.
  18. 18. Reasons for engaging in human resource planning • Planning because of the process benefits, which involve understanding the present in order to confront the future, challenging assumptions and liberating thinking, making explicit decisions that can later be challenged, standing back and providing an overview and ensuring that long- term thinking is not driven out by short-term focus.
  19. 19. Reasons for engaging in human resource planning • Planning for organizational reasons, which involves communicating plans so as to obtain support/adherence to them, linking HR plans to business plans so as to influence them, (re)gaining corporate control over operating units, and coordinating and integrating organizational decision making and actions.
  20. 20. Long-Term Planning and ShortTerm Planning • Often, however, operating pressures move all of the planning from a longer-term focus to a short-term one. That normally tends to create an environment within which the plan cannot be fully successful. • “Over-reliance on short-term planning can be quite costly. Ample lead time is required to recruit or develop talented personnel, and reaction management that responds to short term events or needs will usually limit the choices of options or endanger longer-range economic plans.
  21. 21. The link between strategic planning and human resource planning
  22. 22. Human resource planning model
  23. 23. Job analysis • Job Analysis is a process to identify and determine in detail the particular job duties and the identification of knowledge, skills and attitude required to perform the job duties in an optimum manner. • The Job; not the person: An important concept of Job Analysis is that the analysis is conducted of the Job, not the person. While Job Analysis data may be collected from incumbents through interviews or questionnaires, the product of the analysis is a description or specifications of the job, not a description of the person.
  24. 24. Job Analysis: A Basic Human Resource Management Tool Tasks Responsibilities Duties Human Resource Planning Recruitment Selection Training and Development Job Descriptions Job Analysis Performance Appraisal Compensation and Benefits Job Specifications Safety and Health Employee and Labor Relations Knowledge Skills Abilities Legal Considerations Job Analysis for Teams 24
  25. 25. Purpose of Job Analysis • The purpose of Job Analysis is to establish and document the 'job relatedness' with other HR processes such as 1. training 2. selection 3. compensation 4. performance appraisal.
  26. 26. Importance of Job Analysis
  27. 27. Job Position / Role • Job position refers to the designation of the job and employee in the organization. Job position forms an important part of the compensation strategy as it determines the level of the job in the organization. For example management level employees receive greater pay scale than non-managerial employees. The non-monetary benefits offered to two different levels in the organization also vary.
  28. 28. Job Description / Job Specifications • Job description refers the requirements an organization looks for a particular job position. It states the key skill requirements, the level of experience needed, level of education required, etc. It also describes the roles and responsibilities attached with the job position. • The roles and responsibilities are key determinant factors in deciding the job specifications i.e. the level of experience, education, skills, etc required for the job.
  29. 29. Job Worth / Evaluations • Job Worth refers to estimating the job worthiness i.e. how much the job contributes to the organization. It is also known as job evaluation. Job description is used to analyze the job worthiness. • It is also known as job evaluation. Roles and responsibilities helps in determining the outcome from the job profile. Once it is determined that how much the job is worth, it becomes easy to define the compensation strategy for the position.
  30. 30. Recruitment • A process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce.
  31. 31. Purpose and Importance of Recruitment 1. Determine the present and future requirements of the organization in conjunction with personnel-planning and job- analysis activities. 2. Increase the pool of job candidates at minimum cost. 3. Help increase the success rate of the selection process by reducing the number of visibly, under qualified or overqualified job applicants. 4. Help reduce the probability that job applicants, once recruited and selected, will leave period of time. the organization only after a short
  32. 32. Purpose and Importance of Recruitment 5. Meet the organizations legal and social obligations regarding the composition of its work-force. 6. Begin identifying and preparing potential job applicants who will be appropriate candidates. 7. Increase organizational and individual effectiveness in the short and long term. 8. Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.
  34. 34. Recruitment process
  35. 35. Recruitment Planning The first stage in the Recruitment Process is planning. Planning involves the translation of likely job vacancies and information about the nature of these jobs into a set of objectives is targets that specify the number and type of applicants to be planned.
  36. 36. Strategy Development i. Make or Buy Employees ii. Technological Sophistication of Recruitment and Selection Devices iii. Geographic distribution of labour markets comprising job seekers iv. Sources Of Recruitment • Internal sources • External sources
  37. 37. Searching i. Source Activation: Source Activation takes place when a job vacancy exists in the organization. If the organization has planned and well and done a good job of developing its source and search methods, activation soon results in a flood of application. ii. Selling: In selling the, both the Message and Media deserve attention in the organization. Message refers to the employment advertisements. Media refers to the source of any recruiting message. For example, Employment Exchanges, Advertises in Business magazines
  38. 38. Screening The purpose of screening is to remove from the recruitment process at an early stage, those applicants who are visibly unqualified for the job. Effective screening can save a great deal of time and money. Care must be exercised to assure that potentially good employees are not lost.
  39. 39. Evaluation And Control It is necessary as considerable costs are incurred in the recruitment process. Stastical information should be gathered and evaluated to know the suitability of the recruitment process.
  40. 40. SELECTION • Selection has been regarded as the most important function of HR department. • It ensures the organization that; it has right number, right kind of people at the right place and at the right time. Meaning and Definitions: • “It is the process of differentiating between applicants in order to identify (and hire) those with the greater likelihood of success.”
  41. 41. SELECTION PROCESS 1. Preliminary Interview 2. Selection Tests 3. Employment Interview 4. Reference and Background Checks 5. Selection Decision: 6. Physical Examinations 7. Job Offer 8. Contract Of Employment 9. Evaluation of Selection program
  42. 42. 1. Preliminary Interview: The purpose of this interview is to scrutinize the applicants, i.e. elimination of unqualified applications. 2. Selection Tests: Different types of selection tests may be administrated, depending on the job and the company. Generally tests are used to determine the applicant’s ability, aptitude, and personality.
  43. 43. 3. Employment Interview: The next step in the selection process is employment interview, an interview is conducted at the beginning, and at the selection process of the employment interview can be one- to-one interview or panel interview. 4. Reference and Background Checks: Many employers request names, address, telephone numbers or references for the purpose to verify information and gaining additional background information of an applicant.
  44. 44. 5. Selection Decision: Selection decision is the most critical of all steps in selection process. The final decision has to be made from the pool of individuals who pass the tests, interviews and references checks. 6. Physical Examinations: After selection decision and before the job offer is made, the candidate is required to undergo a physical fitness test. A job offer is often; contingent upon the candidate being declared fit after the physical examinations.
  45. 45. 7. Job Offer: The next step in selection process is job offer. Job offer is made through a letter of appointment. Such a letter generally contains a date by which the appointee must report on duty 8. Contract Of Employment: Basic information is written in Contract of employment that varies according to the levels of job. After the offer and acceptance of the job certain document is the attestation form.
  46. 46. 9.Evaluation of Selection program: The broad test of effectiveness of the selection process is a systematic evaluation .a periodic audit is conducted in the HR department that outlines and highlights the areas which need to be evaluated in the selection process
  47. 47. REDUCTION OF RECRUITMENT COSTS • Internal Recruitment • Print Advertising o Magazine o Newspaper • Recruitment agencies • Online recruitment • Managed Online Recruitment
  48. 48. Placement • Placement is the assignment or reassignment of an employee to a new job. Most placement decisions are made by line managers. There are three types of placement decisions: promotions, transfers and demotions. • A promotion occurs when an employee is moved from a job to another position that is higher in pay, responsibility or organizational level. Promotions may be based on merit or based on seniority .
  49. 49. Placement • Transfers and demotions are the other two major placement decisions available to the organization. Transfers occur when the employee is moved from one job to another position that is relatively equal in pay, responsibility, or organizational level. • Demotions occur when an employee is moved from one job to another position that is lower in pay, responsibility or organizational level.
  50. 50. Induction • Orientation or induction is the task of introducing the new employees to the organisation and its policies, procedures and rules. • A typical formal orientation programme may last a day or less in most organisations. During this time, the new employee is provided with information about the company, its history, its current position, the benefits for which he is eligible, leave rules, rest periods, etc. • Also covered are the more routine things a newcomer must learn, such as the location of the rest rooms, break rooms, parking spaces, cafeteria, etc.
  51. 51. Objectives Induction • Removes fears: A newcomer steps into an organisation as a stranger. He is new to the people, workplace and work environment. He is not very sure about what he is supposed to do. Induction helps a new employee overcome such fears and perform better on the job. • Creates a good impression: Another purpose of induction is to make the newcomer feel at home and develop a sense of pride in the organisation. Induction helps him to: • Acts as a valuable source of information: Induction serves as a valuable source of information to new recruits. It classifies many things through employee manuals/ handbook. Informal discussions with colleagues may also clear the fog surrounding certain issues.
  52. 52. INDUCTION PROGRAMME: STEPS • Welcome to the organisation. • Explain about the company. • Show the location/department where the new recruit will work. • Give the company’s manual to the new recruit. • Provide details about various work groups and the extent of unionism within the company.
  53. 53. INDUCTION PROGRAMME: STEPS • Give details about pay, benefits, holidays, leave, etc. Emphasize the importance of attendance or punctuality. • Explain about future training opportunities and career prospects. viii. Clarify doubts, by encouraging the employee to come out with questions. • Take the employee on a guided tour of buildings, facilities, etc. Hand him over to his
  54. 54. Types Formal Informal Individual Collective Serial Disjunctive Investiture Divestiture
  55. 55. Formal orientation programme HR representative Organisational issues and Employee benefits Special Anxiety reduction seminars Supervisor Specific Job location and Duties Placement
  56. 56. Requisites of an effective programme • Prepare for new employees • Determine information new employees want to know • Determine how to present information • Completion of paper work
  57. 57. Problems of orientation 1. Employee is overwhelmed with too much of information. 2. Employee is overwhelmed with too much of information. 3. Employee is given a menial task that discourages him. 4. Employee is forced to fill the gaps 5. Employee is thrown into action too soon 6. Employee’s mistakes can damage the company 7. Employees may develop wrong perception.
  58. 58. TRANSFERS • A transfer is a change in job assignment. It may involve a promotion or demotion or no change at all in status and responsibility. A transfer has to be viewed as a change in assignment in which an employee moves from one job to another in the same level of hierarchy, requiring similar skills, involving approximately same level of responsibility, same status and same level of pay. A transfer does not imply any ascending (promotion) or descending (demotion) change in status or responsibility.
  59. 59. Types of transfer
  60. 60. Benefits of transfer
  61. 61. PROMOTIONS • Promotion refers to upward movement of an employee from current job to another that is higher in pay, responsibility and/or organisational level. Promotion brings enhanced status, better pay, increased responsibilities and better working conditions to the promotee. There can, of course, be ‘dry promotion’ where a person is moved to a higher level job without increase in pay. Promotion is slightly different from upgradation which means elevating the place of the job in the organisational hierarchy or including the job in higher grade.
  62. 62. PROMOTIONS • A transfer implies horizontal movement of an employee to another job at the same level. There is no increase in pay, authority or status. Hence, it cannot act as a motivational tool. Promotion, on the other hand, has in-built motivational value, as it elevates the status and power of an employee within an organisation.
  63. 63. Types of Promotion 1. Merit-based promotions: Merit based promotions occur when an employee is promoted because of superior performance in the current job. Merit here denotes an individual's knowledge, skills, abilities and efficiency as measured from his educational qualifications, experience, and training and past employment record. The advantages of this system are fairly obvious: 2. Seniority-based promotions: Seniority refers to the relative length of service in the same organization. Promoting an employee who has the longest length of service is often widely welcomed by unions because it is fairly objective. It is easy to measure the length of service and judge the seniority. There is no scope for favoritism, discrimination and subjective judgment. Everyone is sure of getting the same, one day.
  64. 64. DISCIPLINE ACTIONS • There are two ways of dealing with employees who do not obey rules, indulge in acts that are not permitted and tend to fly off the hook at the slightest provocation: • i.e., positive progressive discipline discipline approach approach. and The the best discipline is clearly self discipline, when most people understand what is required at work.
  65. 65. Resignation • An employee may decide to quit an organisation voluntarily on personal or professional grounds such as getting a better job, changing careers, wanting to spend more time with family, or leisure activities. The decision could, alternatively, be traced to the employee's displeasure with the current job, pay, working conditions or colleagues. Sometimes an employee may be forced to quit the organisation compulsorily on grounds of negligence of duty, insubordination, misuse of funds, etc. The resignation in this case, unlike voluntary separation, is initiated by the employer. If the employee refuses to quit, he may have to face disciplinary
  66. 66. Dismissal • Dismissal is the termination of the services of an employee as a punitive measure for some misconduct. Discharge also means termination of the services of an employee, but not necessarily as a punishment. • A discharge does not arise from a single, irrational act.
  67. 67. Retrenchment • Retrenchment is the permanent termination of an employee's services due to economic reasons (such as surplus staff, poor demand for products, general economic slowdown, etc.) It should be noted here that termination of services on disciplinary grounds, illness, retirement, and winding up of a business does not constitute retrenchment. In respect of organisations employing 100 or more persons, the Industrial Disputes Act, 1947, makes it obligatory for the employer to give advance notice or pay equivalent wages before the actual lay off date.
  68. 68. Retrenchment • To claim 50 per cent of basic wages plus dearness allowances, the workman (who is not a casual worker, whose name appears on pay roll, who has completed 12 months of continuous service) must present himself on each working day at the appointed time inside the factory/office premises during the lay off period. If necessary, he might be asked to report a second time during the same day. While laying off workman, the employer is expected to follow the first-in-last-out principle. He should give preference to such workmen if he advertises for reemployment against future openings. The employer has to give three months’ notice before retrenching the worker and get prior approval from the government as well.
  69. 69. Voluntary retirement • In case of voluntary retirement, the normal retirement benefits are calculated and paid to all such employees who put in a minimum qualifying service. Sometimes, the employer may encourage the employee to retire voluntarily– with a view to reduce surplus staff and cut down labor costs. Attractive compensation benefits are generally in-built in all such plans (referred to as golden handshake scheme). • To reduce post-retirement anxieties, companies these days organize counseling sessions, and offer investment related services (e.g., Citibank, Bank of America). Some companies extend medical and insurance benefits to the retirees also, e.g., Indian Oil Corporation.
  70. 70. Exit Interview • In human resource terms, an exit interview is a survey that is conducted with an employee when he or she leaves the company. The information from each survey is used to provide feedback on why employees are leaving, what they liked about their employment and what areas of the company need improvement. Exit interviews are most effective when the data is compiled and tracked over time.
  71. 71. In-Person Exit Interviews • With in-person exit interviews an HR representative meets individually with each terminating employee. Pros • Can provide information regarding benefits and retrieve company property during the interview • Gives a personal touch to each employee • Can probe for more information on each question Cons • Employees may be afraid to share sensitive or negative information during an in-person interview • For larger companies, it may be too time consuming to interview every employee • It’s difficult to track information received verbally during an interview
  72. 72. Telephone Exit Interviews • Telephone Exit Interviews are conducted over the telephone by an HR Representative or an outside third party consultant. Pros • Can probe for more information on each question • Can enter data into a tracking system while conducting the interview • Easier to schedule than in-person interviews Cons • Time consuming if done in-house by an HR Representative • Expensive if done with an outside consultant • Employees often reluctant to verbally share sensitive or negative information
  73. 73. Paper and Pencil Exit Interviews • Paper and Pencil Exit Interviews are usually conducted by a form that is given to the employee on their last day or mailed to the employee’s home. Pros • Takes less time to provide a form compared with conducting an in person or phone interview • Employees can share information on paper that they may be reluctant to say in person Cons • Return rates for exit interview forms average just 30-35% • Difficult and time consuming to compile and track the data from paper and pencil forms
  74. 74. Online Exit Interview Management Systems Pros • Employee self-service so easy for HR to administer • Employees comfortable sharing information by computer so more honest responses • Information automatically compiles and tracked • Reports available at a click of a button • Participation rates (for WebExit customers) double that for paper and pencil exit interviews
  75. 75. Prevention of employee turnover • • • • • • • • • • Start With the Basics. Plan Together. Be Flexible. Don't be Greedy. Forget the "Use By" Date. Reassure their Security. Don't Forget the Rewards. Show Interest. Keep an Ear to the Ground. Never Mislead.
  76. 76. Performance appraisal • It is the systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development.” • “A formal, structured system of measuring and evaluating an employee’s job, related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization, and society all benefits.”
  77. 77. Objective of Performance Appraisal • To effect promotions based on competence and performance. • To confirm the services of probationary employees upon their completing the probationary period satisfactorily. • To assess the training and development needs of employees. • To decide upon a pay raise where regular pay scales have not been fixed.
  78. 78. Objective of Performance Appraisal • TO let the employees know where they stand in so far as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. • Finally, performance appraisal can be used to determine whether programmes such as selection, training, and transfers have been effective or not.
  79. 79. Appraisal Process
  80. 80. Ranking methods • For comparative purposes, particularly when it is necessary to compare people who work for different supervisors, individual statement, ratings, or appraisal forms are not particularly useful. Instead, it is necessary to recognize that comparisons involve as overall subjective judgment to which a host of additional facts & impressions must somehow be added. There is no single form or way to do this.
  81. 81. Critical incident appraisal • The critical incident technique looks like a natural to some people for performance review interviews, because it gives a supervisor actual factual incidents to discuss with an employee. Supervisors are asked to keep a record, a “little black book,” on each employee & to record actual incidents of positive or negative behavior.
  82. 82. Rating scale • This technique may not yield the depth of an essay appraisal, but it is more consistent & reliable. Typically, a graphic scale assesses a person on the quality & quantity of his work (is he outstanding, above average, average or unsatisfactory?) & on a variety of other factors that vary with the job but usually include personal traits like reliability & cooperation. It may also include specific performance items like oral & written communication.
  83. 83. Management by Objectives (MBO) • MBO requires the management to set specific, measurable goals with each employee and then periodically discuss the latter's progress towards these goals. This technique emphasizes participative set goals (that are agreed upon by the superior and the employee) that are tangible, verifiable and measurable. MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished.
  84. 84. Steps • Set the organization's goals: Establish an organisation wide plan for next year and set company goals. • Set departmental goals: Departmental heads at this stage take the broader company goals (such as improving profits by 20 per cent, increasing market share by 10 per cent etc.) and, with their superiors, jointly set goals for their departments. • Discuss departmental goals: The departmental goals are now put to discussion in a departmental meeting with subordinates. The departmental heads would require the subordinates to set their own preliminary individual goals, focusing mostly on what they can do to achieve the department's goals.
  85. 85. Steps • Define expected results: In the next step, the departmental heads and their subordinates agree on a set of anticipatorily set short term, and individual performance targets. • Performance reviews: Departmental heads compare each employee's actual and targeted performance, either periodically or annually. While periodic review is intended to identify and solve specific performance problems, the annual review is conducted to assess and reward one’s overall contribution to the organisation. Because employees are evaluated on their performance results, MBO is often called a result-based performance appraisal system.
  86. 86. Steps • Provide feedback: Both parties now discuss and evaluate the actual progress made in achieving goals, where things have gone off the track, how best to rectify the mistakes made in the past, and how the employee could meet the targets next time, focusing attention on his strengths. However, setting clearly measurable goals is not an easy task. MBO demands a great deal of time to set verifiable goals at all levels of an organisation. In the race to define everything rigidly, some of the qualitative aspects might be ignored (such as employee attitudes, job satisfaction etc). Often the superior may set goals at a frustratingly high level, whereas the subordinate may wish to have it at a comfortable level.
  87. 87. JOB EVALUATION • An assessment of the relative worth of various jobs on the basis of a consistent set of job and personal factors, as qualifications and skills required. such
  88. 88. Methods of Job Evaluation • Non-analytical Methods: – Ranking Method – Job-grading Method • Analytical Methods: – Point-Ranking Method – Factor-Comparison Method
  89. 89. Job Evaluation Process
  90. 90. CRITERIA FOR PROMOTIONS • Promotion refers to upward movement of an employee from current job to another that is higher in pay, responsibility and/or organizational level. Promotion brings enhanced status, better pay, increased responsibilities and better working conditions to the promotee. There can, of course, be ‘dry promotion’ where a person is moved to a higher level job without increase in pay. Promotion is slightly different from up gradation which means elevating the place of the job in the organizational hierarchy (a better title is given now) or including the job in higher grade (minor enhancement in pay in tune with the limits imposed within a particular grade). A transfer implies horizontal movement of an employee to another job at the same level. There is no increase in pay, authority or status. Hence, it cannot act as a motivational tool. Promotion, on the other hand, has in-built motivational value, as it elevates the status and power of an employee within an organization.
  91. 91. Purposes and Advantages of Promotion • Promotion, based either on meritorious performance or continuous service, has powerful motivational value. It forces an employee to use his knowledge, skills and abilities fully and become eligible for vertical growth. • It inspires employees to compete and get ahead of others. Those who fall behind in the race are also motivated to acquire the required skills to be in the reckoning.
  92. 92. Purposes and Advantages of Promotion • Promotion thus, paves the way for employee self development. It encourages them to remain royal and committed to their jobs and the organisation. • The organisation would also benefit immensely because people are ready to assume challenging roles by improving their skills constantly. Interest in training and development programmes would improve. The organisation would be able to utilize the skills and abilities of its personnel more effectively.
  93. 93. Merit-based promotions • Merit based promotions occur when an employee is promoted because of superior performance in the current job. Merit here denotes an individual's knowledge, skills, abilities and efficiency as measured from his educational qualifications, experience, and training and past employment record.
  94. 94. Seniority-based promotions • Seniority refers to the relative length of service in the same organization. Promoting an employee who has the longest length of service is often widely welcomed by unions because it is fairly objective. It is easy to measure the length of service and judge the seniority. There is no scope for favoritism, discrimination and subjective judgment. Everyone is sure of getting the same, one day.
  95. 95. Job enrichment • In contrast, involves a "vertical" loading, giving a worker more responsibility for making decisions related to the present job. A lab technician who is responsible for berry culture might be given the added responsibility of heading a customer education effort on the best stage to buy plant material, or how to care for plants coming out of tissue culture. A cowboy may be given the added charge of selecting his own horses to work with, and a greater hand in animal health-care decisions.
  96. 96. Compensation management • Compensation is what employees receive in exchange for their contribution to the organisation. Total compensation = Direct + Indirect Compensation Base Pay Incentives Benefits
  97. 97. Components of employee remuneration Remuneration Non-financial Financial Basic wages Fringe benefits P.F. Medical care Accident relief Health and Group insurance Incentives, Individual plans Group plans Perquisites Car Club membership Paid holidays Furnished house Stock option scheme Job context Challenging job Responsibilities Growth prospects Supervision Working conditions Job sharing etc
  98. 98. Objectives of compensation planning • • • • • • • • • Internal equity External equity Individual equity Attract talent Retain talent Ensure equity New and desired behavior Control costs Ease of operation
  99. 99. Motivation and performance model Feedback to employees Employees set Goals and expectations Rewards are given Performance Is rewarded Employee considers Equity of Performance rewards Employee sets new goals and Expectations based on prior experiences
  100. 100. Influencing factors of Remuneration Remuneration External Labour Market Cost of Living Labour Unions Govt. Legislations Society Economy Internal Business Strategy Job evaluation & PA The Employee
  101. 101. Devising a remuneration plan Job Description Job Evaluation Job Hierarchy Pay Survey Pricing Jobs
  102. 102. The Development of a wage trend- line New key Job B 10 Key Job A 9 Wages or salaries 8 7 6 5 Wage-trend Line 4 100 200 300 400 500 Point Values 600 700 800 900 1000
  103. 103. Challenges of remuneration Skills-based pay Remuneration Employee participation Comparable worth Salary reviews Pay secrecy
  104. 104. Components of Pay Structure in India 1. Wages • Payment of Wages Act, 1936 Section 2 (vi) – “any reward of settlement and production bonus, if paid, constitutes wages.” • Minimum Wages Act, 1948, “retrenchment compensation, payment in lieu of notice and gratuity payable on discharge constitute wages.” • Wages- The amount paid by the employer for the services of hourly, daily, weekly, fortnightly to employees
  105. 105. WAGES Remuneration of following kind do not constitute wages under any of the acts: (i) Bonus or other payments under a profit-sharing scheme which do not form a part of contract of employment of a workman. (ii) Value of any house accommodation, supply of light, water, medical attendance, travelling allowance, or payment in lieu thereof or any other concession.
  106. 106. WAGES III. Any sum paid to defray special expenses entailed by the nature of the employment of a workman IV. Any contribution to pension, provident fund, or a scheme of social security and social insurance benefits V. Any other amenity or service excluded from the computation of wages by general or special order of an appropriate governmental authority
  107. 107. WAGE AND SALARY ADMINISTRATION • The term ‘compensation administration’ or ‘wage and salary administration’ denotes the process of managing a company’s compensation program. • The goals of compensation administration are to design a cost-effective pay structure that will attract, motivate and retain competent employees.
  108. 108. WAGE AND SALARY ADMINISTRATION Objectives A sound plan of compensation administration seeks to achieve the following objectives: • To establish a fair and equitable remuneration offering similar pay for similar work • To attract qualified and competent personnel
  109. 109. WAGE AND SALARY ADMINISTRATION Objectives • To retain the present employees by keeping wage levels in tune with competing units • To control labour and administrative costs in line with the ability of the organization to pay • To improve motivation and morale of employees and to improve union-management relations • To project a good image of the company and to comply with legal needs relating to wages and salaries
  110. 110. WAGE AND SALARY ADMINISTRATION Principles 1. Should be sufficiently flexible 2. Job evaluation must be done scientifically 3. It must be always consistent with overall organizational plans and programs
  111. 111. WAGE AND SALARY ADMINISTRATION Cont’d Principles 4. It should be in conformity with the social and economic objectives of the country like attainment of equality in income distribution and controlling inflationary trend 5. It should be responsive to the changing local and national conditions 6. These plans should simplify and expedite other administrative process
  112. 112. WAGE AND SALARY ADMINISTRATION Elements Wage and salary systems should have a relationship with the performance, satisfaction and attainment of goals of individual. Wage and salary system has following elements (Henderson): 1. Identifying the available salary opportunities, their costs, estimating the worth of its members, of their opportunities and communicating them to employees. 2. Relating salary to needs and goals 3. Developing quality, quantity and time standards related to work and goals 4. Determining the effort necessary to achieve standards 5. Measuring the actual performance
  113. 113. WAGE AND SALARY ADMINISTRATION Elements: 6. Comparing the performance with the salary received 7. Measuring the job satisfaction of the employees 8. Evaluating the unsatisfied wants and unrealized goals aspirations of the employees 9. Finding out the dissatisfaction arising from unfulfilled needs and unattained goals 10. Adjusting the salary levels to help employees reach unleashed goals and fulfill the unfulfilled needs and aspirations
  114. 114. Purpose of Wage & Salary • Attracting talented resources • Retaining and motivating employees • Financial Management • Legal Requirements
  115. 115. Minimum Wage • Minimum wage is one which provides not merely for bare sustenance of life, but also for the preservation of the efficiency of worker. For this purpose, the minimum wage must also provide for some measure of education, medical requirements & amenities.
  116. 116. Fair Wage • Fair wage is understood in two ways. In a narrow sense, wage is fair if it is equal to the rate prevailing in the same trade & in the neighborhood for similar work. In a wider sense, it will be fair if it is equal to the predominant rate for similar work throughout the country.
  117. 117. Living Wage • Living wage is a step higher than fair wage. Living wage may be described as one which would enable the wage earner to provide for himself/herself & his/her family not only the bare essentials of life like food, clothing, & shelter, but a measure of frugal comfort including education for children; protection against ill health; requirements of essential social needs; &/or measure of insurance against the more important misfortunes including old age.
  118. 118. Methods of Wage Payments • Time Wage System • Piece Wage System 1. Straight Piece Rate 2. Increasing Piece Rate 3. Decreasing Piece Rate • Balance or Debt Method
  119. 119. WAGE DIFFERENTIALS • Differentials in wages are inevitable in any industry. Wage differentials perform important economic functions like labour productivity, attracting the people to different jobs. • Since workers are mobile with a view to maximizing their earnings, wage differentials reflect the variations in productivity, efficiency of management, maximum utilisation of human force
  120. 120. WAGE DIFFERENTIALS Importance: • Attracting efficient workers • Maximization of employee commitment • Development of skills and knowledge • Utilization of human resources • Maximization of productivity through wage differentials by directly allocating manpower among different units, occupations and regions in order to maximize overall production
  121. 121. WAGE DIFFERENTIALS Importance: • Provide an incentive for better allocation of human force – labour mobility among different regions • Plays a pivotal role in a planned economy in the regulation of of wages and development of national wage policy by allocating the skilled human force on priority basis
  122. 122. Reasons for Wage Differentials Wage Differentials Reasons Interpersonal differentials Differentials in sex, skills, age, knowledge, experience Inter occupational differentials Varying requirements of skill, knowledge, demand – supply situation Inter – area differentials Cost of living, ability of employers to pay, demand and supply situation, extent of unionisation Inter – firm differentials Ability of employer to pay, employee’s bargaining power, degree of unionisation, skill needs, etc
  123. 123. Principles Governing Compensation Administration 1. 2. 3. 4. 5. 6. 7. Maintaining Equity Maintaining Competitiveness Matching Employee Expectations Reinforcing positive employee behavior Eliminating any discrepancies Devising a system that is most efficient Optimization of management and interests 8. Maintaining good IR and harmony employee
  124. 124. PERQUISITES • These are allowed to executive and include company car, club membership, paid holidays, furnished house, stock option scheme and the like. Perquisites are competent executives. offered to retain
  125. 125. Fringe benefits • Fringe benefits are compensations made to an employee beyond the regular benefit of being paid for their work. Some fringe benefits are fairly standard, such as offering a few days of sick time or paid vacation time. Others can be significantly greater, and more rare. • Key executives in large companies might also enjoy fringe benefits like use of time-share condominiums, paid continuing education, use of a company jet, use of a company credit card, discounted or free health club memberships, and a significant amount of paid vacation.
  126. 126. Compensation Packages • Base pay (Basic): • The direct financial compensation an individual receives based on the time Worked. • Two bases of calculation • Hourly/wage: payment for the number of hours worked. • Salaried: receive consistent payments at the end of specific period regardless of number of hours worked Nature.
  127. 127. • Variable pay consists of the following components• House rent allowance, you can claim HRA if you fulfil these three conditions: – You have an HRA allowance as part of your salary package – You are staying in a rented accommodation and paying rent for it. – The rent exceeds 10% of your salary.
  128. 128. Cost-of-Living Index • A cost-of-living price index measures the changing cost of a constant standard of living. The index is a scalar measure for each time period. Usually it is a positive number which rises over time to indicate that there was inflation. Two incomes can be compared across time by seeing whether the incomes changed as much as the index did.
  129. 129. Dearness Allowance (DA) Allowances paid to employees in order to enable them to face the increasing dearness of essential commodities. • Serves as cushion, a sort of insurance against increase in price levels of commodities • In India DA is linked to three factors: (i) All India consumer price index (AICPI) (ii) Time factor (iii) Point factor
  130. 130. How to calculate Dearness Allowance
  131. 131. INCENTIVES • An incentive scheme is a plan or program to motivate individuals for good performance. An incentive is most frequently built on monetary re-wards (incentive pay or a monetary bonus), but also may include a variety of non- monetary rewards or prizes.
  132. 132. Features of incentives 1. Incentives are based on a standard of performance for the job. 2. Incentives are measurable in monetary terms. 3. Incentives are meant to motivate workers for better and more performance. 4. Incentives have direct linking to performance. 5. Incentives vary from person to person and from time to time for the same person.
  133. 133. • • • • • • • • • Objectives Profitable for both workers and management Help to increase the production Reduce cost High up morale by rewarding workers in proportion to their output Recognize the worker for his good performance Improve utilization of equipment, materials and service Should furnish a basis for cost control and labour control. Reduce labour turnover and absenteeism Aim at improve relations between workers and management.
  134. 134. Limitations • There is a possibility of reducing the quality of products since incentives are usually based on output. • workers paid by results disregard security regulation in order to active output. It will increase the danger of accidents • some workers may work day and night, it would affect their health. • jealousy and conflict may arise among employees, because some employees will earn more . • workers may oppose introduction of new machines, methods as they fear that new methods or machines will decrease their earnings. • when production is disrupted due to management fault, the workers will insist to get compensation.
  135. 135. Classification of Incentives Financial incentives • Financial incentives include Salary, premium, reward, dividend, bonus, income from investment. Financial incentives play a very important role in improving the performance of the employees. Cash plays a very important role in fulfilling the needs of the individuals especially of labor class.
  136. 136. Non financial incentives • As the employees have other needs like respect and self centered needs , they can be motivated with the help of following non-financial incentives. • Job satisfaction • Job security • Respect and recognition • Training and other employee improvement programs • Housing/medical/educational facilities • Opportunities for growth. • Suggestion scheme, praise, employee-superiors relationship etc
  137. 137. Individual incentives • Individual incentive is the extra compensation paid to an individual for all production over a specified quantity. Group Incentives • Group incentives system involve co-operation among employees , management and the union for reduction in labor, material and supply costs, strengthening of employee loyalty to the company.
  138. 138. Requirement of good incentive • proper climate: this means that the relation between management and employees should be good and free from suspicion • co-operation of workers • Worker’s participation: wage incentive scheme should be implemented with the consultation of workers and union. • Scientific standard: the scheme must be based on scientific management. • Simplicity: the incentive scheme should be simple and everybody must understand it.
  139. 139. Requirement of good incentive • Equitable: this means the scheme should give equal opportunity to all. • flexible: changes may be required due to technological changes, market demand etc • Less costly and wide coverage. • guarantee minimum wages: it will ensure a security to all • Ceiling on earning: the maximum amount of earnings must be fixed. It will help to maintain quality • grievance settlement on time • timely payment of incentive • Follow up: required to rectify the mistakes in incentive scheme.’
  140. 140. Productivity Linked Bonus • To improve business performance (e.g. productivity, sales or profits) • To focus employees’ efforts on key objectives such as customer service, quality and on-time delivery • To increase employee motivation by establishing a clear link between pay and performance (at an individual or team level). • To support stakeholder ideals by allowing employees to share in the success of the business • To encourage change within the organization. • To create the desired workplace culture by, e.g. rewarding teamwork and good attendance.
  141. 141. BONUS SCHEME OPTIONS • Feature 1 Operating level • A bonus scheme or employee rewards strategy can operate at any one or any combination of the following levels: • Individual Bonus Scheme • Team Bonus Scheme • Site Bonus Scheme • Corporate Bonus Scheme • In theory a company could operate a scheme at any one or more of these levels. The constraining factor however, in any bonus scheme, is cost.
  142. 142. Feature 2 Factors • Bonus schemes can be based on a single factor or a range of factors. Single factor schemes allow special focus to be put on a key target or business objective. • This may be of ongoing importance, such as profits or productivity, or a matter that needs particular shortterm attention. • Multi-factor bonus schemes take in a wide range of factors and may include targets at a corporate level in conjunction with targets aimed at particular departments or teams. • A similar outcome may be achieved by using a number of single-factor or single-level schemes.
  143. 143. Productivity and Output Bonus Schemes • Productivity bonus schemes and output bonus schemes are mainly used in manufacturing, e.g. piecework, but is being used increasingly in other sectors e.g. the AA’s patrols are measured on the time taken from receiving details of a job to completing it and the proportion of vehicles fixed at the roadside. In this type of circumstance of course, good productivity also equates with good customer service.
  144. 144. Quality Bonus Scheme • Again quality bonus schemes are relatively predominant in the manufacturing sector; it’s easy to measure quality as the number of defects found per day, week or month. However, the Service sector also uses quality as a factor e.g. Companies House has a target for the level of data capture accuracy each month, and the critical success factors set by United Utilities Service Delivery include meeting the water quality index and electricity standards.
  145. 145. Safety Bonus Scheme • Health and safety is most likely to feature as a factor in bonus schemes in manufacturing or other contexts where the perceived risks are highest. Safety is taken into account in the bonus schemes at BP Grange mouth and Kimberley-Clark’s Barrow Mill.
  146. 146. Compensation criteria 1. Financial Performance/Profits 2. Sales 3. Customer Service /Satisfaction 4. Attendance 5. HR-related Measures 6. Project Work Targets 7. Team Working Bonus Schemes 8. Individual Performance 9. Bonus Payments
  147. 147. Feature 3 Distribution of the Bonus Pool • Bonuses may be paid as an equal flat rate or as a percentage of salary across a department, site or company. Payments may be further differentiated in the following ways: • Vary by grade or role • Reflect individual performance • Be based on team performance
  148. 148. Feature 4 Frequencies of Payments • The frequency of payments varies from weekly to annually and is linked to the objectives and types of bonus scheme operated. Most companies make payments on an annual basis because they have linked their bonuses to annual profit targets.
  149. 149. Feature 5 Hurdles • Most companies only make payments from their bonus schemes if certain hurdles are overcome: 1. Minimum targets for all factors 2. Threshold profit level 3. Absence triggers 4. Management Discretion
  150. 150. DEFINITION OF OCCUPATIONAL HEALTH AND SAFETY • Occupational health and safety (OHS) refers to “the physical, physiological and psychosocial conditions of an organization’s workforce, related to aspects of work and the work context” .
  151. 151. Responsibilities of Employer • Provide and maintain workplace, equipment and tools that are safe and without risk to health of employees. • Provide information, instruction, training and supervision necessary to ensure the health and safety at work of employees. • Conducting risk assessment to remove or control risks to workers at the workplace. • Developing and implementing procedures for dealing with emergencies that may arise while those persons are at work. • Provide suitable personal protective equipment and clothing where necessary. • Provide adequate first aid facilities and treatment.
  152. 152. Responsibilities of Employees • Follow all safety procedures and principles introduced at the workplace, particularly when using or operating any equipment and in other potentially dangerous situations. • Report any workplace hazards and dangerous events to their supervisor immediately. • Cooperating with the employer on safety and health matters. • Report any job-related injury or illness to the employer, and seek treatment promptly. • Use and wear prescribed personal protective equipment while working. • Refraining from the operation of any equipment without proper instructions and authorization.
  153. 153. Responsibilities of Everyone in the Workplace • Cooperate with his employer and any other person to such extend as will enable his employer to comply with the provision of the OHS Act. • Not intentionally or recklessly interfere with or misuse anything provided in the interest of own health, safety and welfare. • Not behave in a way that results risk to the safety and health of others.
  154. 154. TYPES OF HAZARDS • Workplace Hazards in Hotel and Their Risks • Chemical Hazards • Hot Working Environment • Burns and Scalds • Strips, Trips and Falls • Electricity • Fire Hazards
  155. 155. Preventive Measures • The employer shall, in order to address identified and assessed hazards, including ergonomics-related hazards, take preventive measures to address the assessed hazard in the following order of priority. • As part of the preventive measures, the employer shall develop and implement a preventive maintenance program in order to avoid failures that could result in a hazard to employees.
  156. 156. Preventive Measures • The employer shall ensure that any preventive measure shall not in itself create a hazard and shall take into account the effects on the work place. • The preventive measures shall include steps to address: a newly identified hazard in an expeditious manner; • The employer shall ensure that any person assigned to implement ergonomics-related prevention measures has the necessary instruction and training.
  157. 157. Preventive Measures • • • • • • • First, try to eliminate the hazard If not, reduce it If this is not possible, protect yourself Other administrative measures Preventive maintenance Hazard-free preventive measure Record preventive measures
  158. 158. Employee Education • The employer shall provide health and safety education, including education relating to ergonomics. • The employer shall provide education to an employee: • The employer shall review the employee education program, and, if necessary, revise it: • Each time education is provided to an employee, the employee shall acknowledge in writing that they received it, and the employer shall acknowledge in writing that they provided it. • The employer shall keep, in paper or computerized form, records of the education provided to each employee, which shall be kept for a period of two years after the employee ceases to be exposed to a hazard.
  159. 159. Safety audits • A safety audit will examine the whole organization in order to test whether it is meeting its safety aims and objectives. It will examine hierarchies, safety planning processes, decision making, delegation, policy making and implementation as well as all areas of safety programme planning.
  160. 160. Who carries out a health and safety audit • Safety audits can be conducted by safety advisers and/or HR specialists, but the more managers, employees and trade union representatives are involved the better. Audits are often carried out under the auspices of a health and safety committee with its members taking an active part in conducting them. • Managers can also be held responsible for conducting audits within their departments and, even better, individual members of these departments can be trained to carry out audits in particular areas. The conduct of an audit will be facilitated if checklists are prepared and a simple form used to record results. • Some organizations also use outside agencies such as the British Safety Institute to conduct independent audits.
  161. 161. What is covered by a health and safety audit 1. Policies 2. Procedures 3. Safety practices • The audit should cover the questions above but its purpose is to generate action. Those conducting the audit will have to assess priorities and costs and draw up action programmes for approval by the board.
  162. 162. Safety training • Health and safety training is a key part of the preventative programme. It should start as part of the induction course. It should also take place following a transfer to a new job or a change in working methods. Safety training spells out the rules and provides information on potential hazards and how to avoid them. Further refresher training should be provided and special courses laid on to deal with new aspects of health and safety or areas in which safety problems have emerged.
  163. 163. Organizing health and safety • Management develops and implements health and safety policies and ensures that procedures for carrying out risk assessments, safety audits and inspections are implemented. Importantly, management has the duty of monitoring and evaluating health and safety performance and taking corrective action as necessary. • Managers can exert the greater influence on health and safety. They are in immediate control and it is up to them to keep a constant watch for unsafe conditions or practices and to take immediate action. They are also directly responsible for ensuring that employees are conscious of health and safety hazards and do not take risks.
  164. 164. Organizing health and safety • Employees should be aware of what constitutes safe working practices as they affect them and their fellow workers. While management and managers have the duty to communicate and train, individuals also have the duty to take account of what they have heard and learnt in the ways they carry out their work. • Health and safety advisers advise on policies and procedures and on healthy and safe methods of working. They conduct risk assessments and safety audits and investigations into accidents in conjunction with managers and health and safety representatives, maintain statistics and report on trends and necessary actions.
  165. 165. Organizing health and safety • Health and safety representatives deal with health and safety issues in their areas and are members of health and safety committees. • Medical advisers have two functions: preventive and clinical. The preventive function is most important, especially on occupational health matters. The clinical function is to deal with industrial accidents and diseases and to advice on the steps necessary to recover from injury or illness arising from work. They do not usurp the role of the family doctor in non-work-related illnesses. • Safety committees consisting of health and safety representatives advise on health and safety policies and procedures, help in conducting risk assessments and safety audits, and make suggestions on improving health and safety performance.
  166. 166. Work stress • Over the last decade, organizations have become increasingly aware of the need to manage stress. There have been two drivers for this. The first is the need for a motivated and productive workforce, where the negative effects of stress on attendance, performance, job satisfaction and commitment are minimized. The second is an organization’s legal responsibilities for the care of their employees. The current health and safety legislation means that employers are legally bound to make sure that their employees aren’t made ill by their work, and this includes ill- health due to stress
  167. 167. The nature of work-related stress • The experience of stress occurs when the demands and pressures which an individual encounters are not matched by that individual’s ability to cope with those demands and pressures. It is also more likely to arise when an individual has insufficient control over events and inadequate support in coping with them. • So stress cannot simply be equated with high demands and pressure, although it is often used in this way in everyday language. A certain amount of demand and pressure can be good for performance and may be necessary to keep employees active and motivated. However, when these demands and pressures are inadequately managed and become excessive they can then lead to the experience of stress, which is not beneficial.
  168. 168. Causes of Stress in the Workplace • Work overload – Quantitative: too much to do in too short a time – Qualitative: work that is too difficult – Quantitative has increased in recent years due to downsizing • Work underload – work that is too simple or insufficient to fill one’s time • Both of these impact stress and health, appears that a moderate amount of stress is optimal
  169. 169. Causes of Stress - Continued • Organizational Change – if not hardy, change causes stress in individuals. Can be reduced by including employees in planning • Role Ambiguity – unstructured or poorly defined job responsibilities (expected standards, methods, schedules) • Role Conflict – conflict between job demands and employee’s personal standards
  170. 170. Procrastination • Delay action for no “good” reason • Suggestions for controlling: – Calculate the cost of procrastination: e.g., reduce chance of promotion – Worst in, first out principle: tackle worst task first – Break task into manageable chunks – Make a commitment to other people: “I’ll give it to you on Friday/by lunch – Remove mind clutter: eliminate trivial items from to do list – Fill your schedule – provides stimulation you had been receiving by working up to deadlines
  171. 171. Effects of Stress in the Workplace • Mass psychogenic illness – also known as assembly line hysteria. Isolation and suggestibility • Burn out – results from overwork. Includes, – Emotional Exhaustion – Depersonalization – Reduced sense of personal accomplishment – Quantity of work may stay the same, but the quality declines, depression, apathy, irritability, and boredom may occur
  172. 172. Workaholism • “Addiction” to work because of anxiety and insecurity or because of a genuine liking for the job • Healthy, work enthusiasts – usually have jobs with autonomy and variety, appropriate skills for job, and supportive families • Unhealthy, workaholics – Compulsive, driven to perform job tasks. Often negatively impact co-workers
  173. 173. Treating Stress in the Workplace • Organizational Techniques – Provide sufficient support for change – Provide sense of control through participation – Clearly define employee roles – Eliminate work over and under load – EAPs for stress reduction (teach coping strategies) – Provide opportunity for social support (formal or informal)
  174. 174. Individual Techniques for Stress Reduction • • • • Exercise Relaxation Training Biofeedback Behavior Modification
  175. 175. FACTORS INFLUENCING WORK STRESS • • • • • The drive for success Changing work patterns Working conditions Overwork Under-work • • • • • Uncertainty Conflict Responsibility Relationships at work Change at work
  176. 176. WORKING CONDITIONS • Physical and mental health is adversely affected by unpleasant working conditions, such as high noise levels, lighting, temperature and unsocial or excessive hours. OVERWORK • Stress may occur through an inability to cope with the technical or intellectual demands of a particular task. • Circumstances such as long hours, unrealistic deadlines and frequent interruptions will compound this.
  177. 177. UNDERWORK • This may arise from boredom because there is not enough to do, or because a job is dull and repetitive. UNCERTAINTY • About the individuals work role - objectives, responsibilities, and expectations, and a lack of communication and feedback can result in confusion, helplessness, and stress. CHANGES AT WORK • Changes that alter psychological, physiological and behavioural routines such as promotion, retirement and redundancy are particularly stressful.
  178. 178. CONFLICT • Stress can arise from work the individual does not want to do or that conflicts with their personal, social and family values. RESPONSIBILITY • The greater the level of responsibility the greater the potential level of stress. RELATIONSHIPS AT WORK • Good relationships with colleagues are crucial. Open discussion is essential to encourage positive relationships.
  179. 179. Stress Management Techniques • Change your thinking – Re-framing – Positive thinking • Change your behaviour – – – – – Be assertive Get organised Ventilation Humour Diversion and distraction • Change your lifestyle – – – – – – Diet Smoking & Alcohol Exercise Sleep Leisure Relaxation
  180. 180. MANAGEMENT OF GRIEVANCES DISSATISFACTION , COMPLAINT & GRIEVANCES Dissatisfaction :Anything that disturbs an employee , whether or not the unrest is expressed in words. Complaint : A spoken or written dissatisfaction brought to the attention of the supervisor or the Shop Steward ( In – Charge ). Grievance : A complaint that has been formally presented to a Management Representitive or to a Union Official
  181. 181. Some Definitions of Grievances • 1. A grievance is a formal dispute between an employee & management on the conditions of employment. • 2.Grievances are complaints that have been formally registered in accordance with the grievance procedure. • 3. A grievance is any dissatisfaction or feeling of injustice in connection with one’s employment situation that is brought to the attention of the management.
  182. 182. Features of Grievances • 1.Discontent or Dissatisfaction. • 2. Dissatisfaction must arise out of employment & not due to personal reasons. • 3. The discontentment can arise out of real or imaginary reasons. • 4. The discontent may be voiced or unvoiced but it must expression in some form. • 5. Broadly speaking a grievance is noticeable & traceable to real or perceived non-fulfillment of one’s expectations.
  185. 185. • • • • • • • • HUMAN ASPECTS 1. Work Environment : Light , space ,heat. 2. Use of equipment : Tools / Poor Maint. 3. Supervisory Practices. 4. Personality clashes. 5. Managers’ Behavior. 6. Refused requests. Problems wits pay / allowances. 7. Perceived inequalities in treatment : Pay ,appeals against performance related awards. • 8. Organizational Change.
  186. 186. EFFECT OF GRIEVANCES • 1. On Production : Low quality of production , Low productivity , Increase in wastage , Increase in cost of production • 2. On Employees : Increased absenteeism , Reduction in level of commitment , Increase in accidents , Reduced level of employee morale. • 3. On Managers : Strained superior – subordinate relations , Need for increased supervision/control & follow up Increase in unrest ,thereby machinery to maintain industrial peace.
  187. 187. BENEFITS OF GRIEVANCE HANDLING PROCEDURES • 1. It encourages employees to raise concerns without fear of reprisal. • 2. It provides a fair & speedy means of dealing of grievances. • 3. It prevents minor disagreements developing into more serious disputes. • 4. It saves employer’s time & money as solutions are found for workplace problems. • 5. It helps build in organisational climate based on openness and trust.
  188. 188. OBJECTIVES OF GRIEVANCE HANDLING PROCEDURES • • • • 1. To enable employee to air his/her grievance. 2. To clarify the nature of grievance. 3. To investigate the reasons of dissatisfaction. 4. To obtain where possible a speedy resolution to the porblem. • 5. To take appropriate actions & ensure that the promises are kept. • 6. To inform the employee his /her right to voice the grievance & take it to next stage of the procedure.
  190. 190. • • • • • • DISCOVERY OF GRIEVANCES a) Observation. b) Grievance procedure. c) Gripe Boxes. d) Open Door Policy. e) Exit Interview. f) Opinion Survey.
  191. 191. ESSENTIAL PREREQUISITES OF A GRIEVANCE REDRESSAL PROCEDURE • • • • • • 1. Conformity withstatutory provisions. 2. Unambiguous. 3. Simplicity. 4. Promptness. 5. Training. 6. Follow up.
  192. 192. STEPS IN GRIEVANCE REDRESSAL PROCEDURE • • • • • 1. Identify grievance at the earliest. 2. Define the grievance correctly. 3. Collect data. 4. Prompt Redressal. 5. Implement and follow up.
  193. 193. Grievance Defined • A grievance as a complaint of one or more workers with respect to wages and allowances, conditions of work and interpretation of service, condition covering such areas as overtime, leave, transfer, promotion, seniority, job assignment and termination of service. » International Labour Organization(ILO)
  194. 194. Definitions of Grievances 1. A grievance is a formal dispute between an employee & management on the conditions of employment. 2. Grievances are complaints that have been formally registered in accordance with the grievance procedure. 3. A grievance is any dissatisfaction or feeling of injustice in connection with one’s employment situation that is brought to the attention of the management.
  195. 195. Features of Grievances • Discontent or Dissatisfaction. • Dissatisfaction must arise out of employment & not due to personal reasons. • The discontentment can arise out of real or imaginary reasons. • The discontent may be voiced or unvoiced but it must expression in some form. • Broadly speaking a grievance is noticeable & traceable to real or perceived non-fulfillment of one’s expectations.
  196. 196. Forms of Grievances a) FACTUAL. b) IMAGINARY. c) DISGUISED.
  197. 197. Reasons of Grievances • • • • • 1. ECONOMIC. 2. WORK ENVIRONMENT. 3. SUPERVISION. 4. WORK GROUP. 5. MISCELLANEOUS.
  198. 198. Human Aspects 1. Work Environment : Light , space ,heat. 2. Use of equipment : Tools / Poor Maintenance. 3. Supervisory Practices. 4. Personality clashes. 5. Managers’ Behavior. 6. Problems with pay / allowances. 7. Perceived inequalities in treatment : Pay, appeals against performance related awards. 8. Organizational Change.
  199. 199. Types of Grievances • Individual Grievance: complaint that an action by management has violated the rights of an individual as set out in the collective agreement or law, or by some unfair practice. • Examples: discipline, demotion, classification disputes, denial of benefits, etc.
  200. 200. Types of Grievance • Group Grievance: complaint by a group of individuals, for example, a department or a shift that has been affected the same way and at the same time by an action taken by management. • An example of a group grievance would be where the employer refuses to pay a shift premium to the employees who work on afternoon shift when the contract entitles them to it.
  201. 201. Types of Grievance • Policy Grievance: complaint by the union that an action of management (or its failure or refusal to act) is a violation of the agreement that could affect all who are covered by the agreement. • Group grievances are often treated as policy grievances. • For example, management assigns a steady dayshift employee to work on an off shift without regard to seniority.
  202. 202. EFFECT OF GRIEVANCES 1. On Production : Low quality of production , Low productivity , Increase in wastage , Increase in cost of production 2. On Employees : Increased absenteeism , Reduction in level of commitment , Increase in accidents , Reduced level of employee morale. 3. On Managers : Strained superior – subordinate relations , Need for increased supervision/control & follow up Increase in unrest ,thereby machinery to maintain industrial peace.
  203. 203. BENEFITS OF GRIEVANCE HANDLING PROCEDURES • 1. It encourages employees to raise concerns without fear of reprisal. • 2. It provides a fair & speedy means of dealing of grievances. • 3. It prevents minor disagreements developing into more serious disputes. • 4. It saves employer’s time & money as solutions are found for workplace problems. • 5. It helps build in organisational climate based on openness and trust.
  204. 204. Objectives of Grievance Handling 1. To enable employee to air his/her grievance. 2. To clarify the nature of grievance. 3. To investigate the reasons of dissatisfaction. 4. To obtain where possible a speedy resolution to the problem. 5. To take appropriate actions & ensure that the promises are kept. 6. To inform the employee his /her right to voice the grievance & take it to next stage of the procedure.
  205. 205. Key Features of Grievance Redressal Procedure 1. FAIRNESS. 2. FACILITIES FOR REPRESENTATION. 3. PROCEDURAL STEPS. 4. PROMPTNESS.
  206. 206. Discovery of Grievance a) Observation. b) Grievance procedure. c) Gripe Boxes. d) Open Door Policy. e) Exit Interview. f) Opinion Survey.
  207. 207. Value Addition - HR Glossary • Joint/labor management committee • Key result areas • A panel comprised of management and union representatives whose purpose is to address problems, resolve conflicts and build on relationships. • The parts of an organization’s intangible assets that relate specifically to knowledge, expertise, information, ideas, best practices, intellectual property and other capabilities.
  208. 208. Value Addition - HR Terminology • Knowledge- based pay • A salary differentiation system that bases compensation on an individual’s education, experience, knowledge, skills or specialized training. Also referred to as skill based pay. • Knowledge management • The process of creating, acquiring, sharing and managing knowledge to expand individual and organizational performance.
  209. 209. Handling Grievance • • • • • • • • Amenities Compensation Conditions of work Continuity of service Disciplinary action Fines Leave Medical benefits • • • • • • • • Nature of job Payments Promotions Safety environment Super Annuation Supersession Transfers Victimisation
  210. 210. Individual or Collective (Group) Grievances • It is important to make a distinction between individual grievances and group grievances. • If the issue involved relate to one or a few individual employees, it needs to be handled through a grievance procedure, but when general issues with policy implications and wider interest are involved they become the subject matter for collective bargaining.
  211. 211. Reasons for Grievances • Economic – Wage fixation, wage computation, overtime, bonus – Employees feel they are getting less than what they ought to get • Working Environment – Poor working conditions, defective equipment and machinery, tools, materials. • Supervision – Disposition of the boss towards the employee perceived notions of favoritism, nepotism, bias etc.
  212. 212. Reasons for Grievances • Work Group – Strained relations or incompatibility with peers. Feeling of neglect, obstruction and victimisation. • Work Organisation – Rigid and unfair rules, too much less work responsibility, lack of recognition.
  213. 213. Effects of Grievance a. Loss of interest in work and consequent lack of moral and commitment b. Poor quality of production c. Low productivity d. Increase in wastage and costs e. Increase in employee turnover f. Increase in the incidence of accidents g. Indiscipline h. Unrest, etc.
  214. 214. Value Addition - HR Terminology • Ability test • Ability • Absenteeism • An assessment instrument used to measure an individual’s abilities, mental or physical skills level (i.e. problem solving, manual dexterity, etc.) • Aptitude or competence, the skill or proficiency needed to perform certain tasks. • Referred to as the habitual failure of employees to report for work when they are scheduled to work.
  215. 215. Grievance Procedure
  216. 216. Dispute settlement machinery • Different methods for settlement of industrial disputes provided in the Industrial Dispute Act 1947. • Conciliation • Arbitration • Adjudication
  217. 217. Conciliation • The Government (Central or the State) appoints conciliation officers who are usually officials of the State Labour Department or the officials of the Ministry of Labour Government of India. • Appointed for a particular geographical area, usually a revenue district. • In certain cases the conciliation officer is appointed for a particular industry in a particular area. • If any industrial dispute arises between an employer and his workmen the either can approach the Conciliation Officer for the area in which the industry is situated and request him to hold conciliation talks in the dispute and settle the issue.
  218. 218. • The talks initiated by the conciliation officer are called conciliation talks. • The conciliation talks may end in the settlement of the disputes in which case a settlement is drafted and signed by the employer, the workmen(trade union) and the conciliation officer. • There may be cases when the conciliation officer may not be able to settle the dispute for several reasons. • In such circumstances, the conciliation officer sends a report to the Government. • This report is called the conciliation failure report. • The Government may refers the issue in dispute to the Labour Court/Industrial Tribunal.
  219. 219. Adjudication • The Labour Court/Industrial Tribunal gets the jurisdiction to decide an industrial only if the Government makes a reference of that dispute to it. • The proceedings before the Labour Court/Industrial Tribunal are called adjudication proceedings. • The Labour Court/Industrial Tribunal after following the procedure prescribed under law finally gives its decision. • This decision is sent to the Government and becomes operational thirty days after the date of its publication by the Government. • However, any one of the can challenge the decision by means of a writ petition before the High Court.
  220. 220. Arbitration • The parties agree that the issue in dispute between them should be settled by referring the issues for arbitration. • The parties to the dispute can select the person who should arbitrate the issue i.e., the arbitrator.
  221. 221. Grievance Redressal Procedure • Grievance Redressal Procedure has been divided into three stages: – Stage I – Stage II – Stage III
  222. 222. Grievance Procedure
  223. 223. Stage - I of Grievance Redressal
  224. 224. Stage-II of Grievance Redressal
  225. 225. Stage-III of Grievance Redressal Procedure
  226. 226. The Unit Grievance Redressal Committee/Work Committee • Comes into picture in stage III. • Matter to be dealt with committee include the following: – Settlement of grievances relating to the terms and conditions of employment of employees in the day today working – Questions as to whether or not the Company’s rules have been followed in any particular case, e.g. violation of acting rules – Matters relating to discipline and conduct as between the management and the employees – Matters relating to severity of punishment given as a disciplinary measure. – Complaints regarding withholding of increments. – Questions relating to the abuse of privileges of provision of amenities
  227. 227. Limitations of committee • The committee is not concerned with the problems of planning and development in their wide sense. • The committee also does not discuss matters which are trade questions such as wages, allowance, hours of work, leave, old age benefits and the like, which are covered by agreement with the trade unions or by reports of Conciliation boards or awards of Industrial tribunal. • Any decision of the committee must be superseded by an agreement between the management and the union.
  228. 228. Members of Committee • The committee consists of ten members of whom five represent the management and five represent the employees (Joint Management Committee) • Management Representatives : The representatives of the Management on the committee are nominated by the management • Employees Representatives : The representatives of employees on the committee are nominated by the union, which is registered under the Trade Union Act, is representative of the employees and is recognized by the management for this purpose.
  229. 229. Officers of the committee • The Committee has a Chairman, a Vice-Chairman and a member Secretary • The Chairman is nominated by the management from amongst its representatives on the committees • The Vice-Chairman is nominated by the union from amongst it’s employees’ representatives on the committee. • The Secretary is nominated by the management from amongst its representatives on the committee
  230. 230. Tenure of Officers • Term of office of the employee’s representative on the committee other than members nominated to fill casual vacancies, is 36 months from the date of formation of the Committee. • A member nominated to fill a casual vacancy holds office for the unexpired term of his predecessor.
  231. 231. • Quorum of meeting • Meetings • At least one-third of the number of members from each side can form the quorum for a meeting of the committee. No quorum is necessary for an adjourned meeting. • The committee can meet as often as necessary but not less than once a month. • • Payment to employeeThe employee’s representatives, if they attend meetings while on duty, are paid by the Corporation their full wages representatives of the time they spend in the committees as if they are on their usual duty. • Decision of committee recommendations of the Unit Grievance Redressal • The Committee are not unanimous, the Chairman puts up the case to the Central Grievance Redressal Committee for consideration.
  232. 232. • Date and Time of Meeting • Notice of meeting • Decided by chairman • The notice of meeting with it’s agenda is ordinarily sent by the secretary to each member of the committee three days before the date of the meeting.
  233. 233. The Central Grievance Redressal Committee • If the matter involves large number of employees. • The Central Grievance Redressal Committee has the power to deal with :– Cases which have been referred by the Unit Grievance Redressal Committees and the non-factory employees works committee. – Cases in which the unanimous decisions of any of the Unit Grievance Redressal Committees and the non-factory employee’s works committee have been objected to by management or union. – Individual grievances or complaints of employees, which the union wishes to discuss – Issues of policy and their interpretation in regard to labour matters which the union wishes to discuss.
  234. 234. Limitations of committee • The committee is not concerned with the problems of planning, works development and management of the plant in the wider sense. • Any decision of the committee can be superseded by an agreement between the management and the union
  235. 235. • Membership • Term of officers • Officers of committee • Quorum of meeting • Eight members of whom four represent the management and four represent the employees. • 36 months • Chairman, Vice-Chairman and Secretary • Atleast half of the number of members representing management and the employees constitute the quorum for a meeting of the committee. No quorum for an adjourned meeting.
  236. 236. • Notice of meeting • Acting on committees decision • The notice of the meeting, together with the agenda, is ordinarily sent one day before the date of the meeting. • The unanimous decision of the committee is binding on the Management, the employees, and the union where the decision relates to a matter of policy or general principle, the approval or order of the managing agents is necessary. In all such cases, decision of the committee is forwarded by the Chairman to the appropriate authority for necessary action.
  237. 237. Informal Grievance Redressal Procedure • More than half of the employees interviewed said that the informal method of resolving grievances by way of oral consultants with their superiors is a much better and less complicated method to undertake. • The aggrieved employee can directly approach his shift incharge or the section head (in case of a major grievance) engage into a direct consultation and have his grievance resolved amicably in stage I itself.