Lecture2 2 15586-lecture2_hrm intro

HUMAN RESOURCEHUMAN RESOURCE
MANAGEMENTMANAGEMENT

HRMHRM
 Management of work force of anManagement of work force of an
organisation ie how to manage theorganisation ie how to manage the
different people working together in adifferent people working together in a
organisation.organisation.
 HRM is a management function thatHRM is a management function that
helps managers recruit, train andhelps managers recruit, train and
develop members for an organisation.develop members for an organisation.

HRMHRM
 HRM is concerned with the peopleHRM is concerned with the people
dimension in management. Since everydimension in management. Since every
organisation is made up of people,organisation is made up of people,
acquiring their services, developingacquiring their services, developing
their skills, motivating them to highertheir skills, motivating them to higher
level of performance, and ensuring thatlevel of performance, and ensuring that
they continue to maintain theirthey continue to maintain their
commitment to the organisation arecommitment to the organisation are
essential to achieving organisationalessential to achieving organisational
objectives. This is true, regardless ofobjectives. This is true, regardless of
the type of organisation ie government,the type of organisation ie government,
business, education, health.business, education, health.

Objectives of HRMObjectives of HRM
 Societal objectives – To be socially responsible toSocietal objectives – To be socially responsible to
the needs of the society.the needs of the society.
 Organisational Objective – To recognise the role ofOrganisational Objective – To recognise the role of
HRM in bringing about organisational effectiveness.HRM in bringing about organisational effectiveness.
 Functional objective – To maintain department’sFunctional objective – To maintain department’s
contribution at a level appropriate to thecontribution at a level appropriate to the
organisation’s needs.organisation’s needs.
 Personal Objective – To assist employees in achievingPersonal Objective – To assist employees in achieving
their personal goals, at least in so far as these goalstheir personal goals, at least in so far as these goals
enhance the individual’s contribution to theenhance the individual’s contribution to the

Objective of HRMObjective of HRM
 HRM Obj. Supporting functionHRM Obj. Supporting function
Societal Objective
1. Legal compliance
2. Benefits
3. Union Management relations
Organisational
Objectives
1. HRP
2. Employee relations
3. Selection
4. Training & Development
5. Appraisal
6. Placement

Objectives of HRMObjectives of HRM
 HRM Obj. Supporting functionHRM Obj. Supporting function
Functional objectives
1. Placement
2. Assessment
Personal Objectives
1.Training & Development
2. Compensation

Competitive challenges and HRCompetitive challenges and HR
1.1. Going globalGoing global
2.2. Embracing new technologyEmbracing new technology
3.3. Managing change and organisationManaging change and organisation
cultureculture
4.4. Responding to the marketResponding to the market
5.5. Containing costsContaining costs
 DownsizingDownsizing
 Outsourcing and employee leasingOutsourcing and employee leasing
 Enhancing productivityEnhancing productivity

Other challenges facedOther challenges faced
 Demographic and Employee concernsDemographic and Employee concerns
 Demographic changesDemographic changes
 Diversity of backgroundsDiversity of backgrounds
 Age distributionsAge distributions
 Gender distributionGender distribution
 Rising level of educationRising level of education
 Cultural changesCultural changes
 Concern for employee rightsConcern for employee rights
 Changing attitude towards workChanging attitude towards work
 Balancing work and familyBalancing work and family

Functions of HRFunctions of HR
MANAGERIAL
FUNCTIONS
Planning
Organising
Directing
Controlling
OPERATIVE
FUNCTIONS
Staffing
Development
Compensation
Motivation
Maintenance
Integration

Operative functions of HROperative functions of HR
STAFFING Job analysis, HRP, Recruitment,
Selection, Placement, Induction,
Internal Mobility
DEVELOPMENT
Competency profiling, Training and
development, Performance &
potential management, Career
management, 360 degree feedback
COMPENSATION
& MOTIVATION
Job design, Work scheduling, Job
evaluation, Compensation
administration, Incentives and
benefits

Operative functions of HR (contd.)Operative functions of HR (contd.)
MAINTENANCE
Health, Safety, Welfare
INTEGRATION
Employment relations, Grievance,
Discipline, Trade unions,
Participation

Scope of HRMScope of HRM
 LabourLabour or Personnel aspector Personnel aspect ––
Recruitment, Selection, Transfer,Recruitment, Selection, Transfer,
Promotion etc.Promotion etc.
 Welfare aspectWelfare aspect – Housing, Lunch room,– Housing, Lunch room,
Health and Safety, Transport,Health and Safety, Transport,
education etc.education etc.
 Industrial relation aspectIndustrial relation aspect – Union– Union
Management relations, Negotiation,Management relations, Negotiation,
Grievance handling etc.Grievance handling etc.

HRM Environment - ExternalHRM Environment - External
Professionalism
Social & cultural
Union
Political & legal
Economic
Technology
HRM

HRM Environment - InternalHRM Environment - Internal
Mission
Organisational
Conflict
Policies
HRM

HRM PoliciesHRM Policies
 PolicyPolicy – is predetermined course of action– is predetermined course of action
established to guide the performance of workestablished to guide the performance of work
towards accepted objectives.towards accepted objectives.
 ImportanceImportance -:-:
(1) Clear Thinking(1) Clear Thinking
(2)Uniformity & Consistency of Admin.(2)Uniformity & Consistency of Admin.
(3)Sence of Security(3)Sence of Security
(4)Control(4)Control

Types of HR PoliciesTypes of HR Policies
 Originated policiesOriginated policies – Made by top– Made by top
Management.Management.
 Appealed policiesAppealed policies – Made on request to handle– Made on request to handle
certain situation, or if certain aspects arecertain situation, or if certain aspects are
missing in the main policy.missing in the main policy.
 Imposed policiesImposed policies – Imposed by Govt & Legal– Imposed by Govt & Legal
authorities.authorities.
 General policiesGeneral policies – Do not relate any issue, may– Do not relate any issue, may
represent the priority of Top Mgmt. (WPM).represent the priority of Top Mgmt. (WPM).
 Specific PolicySpecific Policy – Related to specific issues– Related to specific issues
like Recruitment, Transfer, Promotion etc.like Recruitment, Transfer, Promotion etc.

Strategic ManagementStrategic Management
 Strategy -: is a way of doingStrategy -: is a way of doing
something. It usually includes thesomething. It usually includes the
formulation of a goal and set of actionformulation of a goal and set of action
plans for accomplishment of that goal.plans for accomplishment of that goal.
 Strategy has two components -:Strategy has two components -:
1) Planning1) Planning
2) Action2) Action

Strategic ManagementStrategic Management
 Strategic management is understood asStrategic management is understood as
the process of formulating,the process of formulating,
implementing and evaluating businessimplementing and evaluating business
strategies to achieve organisationalstrategies to achieve organisational
objectives.objectives.
 Analysis of the environment,Analysis of the environment,
formulation of strategies, andformulation of strategies, and
evaluation and control are the phases inevaluation and control are the phases in
the strategic management process.the strategic management process.

Human Resource PlanningHuman Resource Planning
 Meaning – Assessment of Human ResourceMeaning – Assessment of Human Resource
Requirements & also the time & stages ofRequirements & also the time & stages of
requirement.requirement.
 Right person ---At Right place ---At RightRight person ---At Right place ---At Right
time.time.
 Definition – HRP is defined as the process byDefinition – HRP is defined as the process by
which management determines how an orgwhich management determines how an org
should move from its current manpowershould move from its current manpower
position to its desired manpower position.position to its desired manpower position.

Objectives of HRPObjectives of HRP
 To ensure optimum use of existing HR.To ensure optimum use of existing HR.
 To forecast future requirement for HR.To forecast future requirement for HR.
 To provide control measures to ensureTo provide control measures to ensure
that necessary HR are available as andthat necessary HR are available as and
when required.when required.
 To asses the surplus and shortage ofTo asses the surplus and shortage of
HR. (Downsizing).HR. (Downsizing).
 To anticipate the impact of technologyTo anticipate the impact of technology
on jobs and HR.on jobs and HR.

Objectives of HRP – Contd.Objectives of HRP – Contd.
 To determine the level of RecruitmentTo determine the level of Recruitment
and Training.and Training.
 To estimate the cost of HR and HousingTo estimate the cost of HR and Housing
needs of employees. (Or HRA).needs of employees. (Or HRA).
 To provide the basis of MDP.To provide the basis of MDP.
 To meet the needs of expansion andTo meet the needs of expansion and
diversification programmes.diversification programmes.

Importance of HRPImportance of HRP
 Future Personnel needsFuture Personnel needs
 Creating highly talented personnelCreating highly talented personnel
 International StrategiesInternational Strategies
 Foundation of personnel functionFoundation of personnel function
 Resistance to change and moveResistance to change and move

Factors Affecting HRPFactors Affecting HRP
Outsourcing
Strategy of
Organisation
Environmental
Uncertainties
Organisational
growth cycle
& planning
HRP

 Organisation growth cycle and planning-:Organisation growth cycle and planning-:
HRP is Critical when organisation entersHRP is Critical when organisation enters
the growth stage.the growth stage.
Mature organisations experiences lessMature organisations experiences less
flexibility and variability, growth slowsflexibility and variability, growth slows
down. HRP is dominated by Layoffs,down. HRP is dominated by Layoffs,
Retrenchment, Retirements.Retrenchment, Retirements.

 Environmental Uncertainties -:Environmental Uncertainties -:
When Political, Social and other changesWhen Political, Social and other changes
affect the organisation, HR plannersaffect the organisation, HR planners
deal with uncertainties.deal with uncertainties.
It can result in Recruitment, Training,It can result in Recruitment, Training,
Succession Planning, Retrenchment etc.Succession Planning, Retrenchment etc.

 Strategy of Organisation -:Strategy of Organisation -:
Strategic plan of the organisation defines theStrategic plan of the organisation defines the
organisation’s HR needs.organisation’s HR needs.
Internal Growth
Informal
Reactive
Narrow
Inflexible
Growth through Mergers
Broad
Formal
Proactive
Flexible

 Outsourcing -:Outsourcing -:
Most organisations have surplus labourMost organisations have surplus labour
and they do not want to worsen theand they do not want to worsen the
problem by hiring more people.problem by hiring more people.
Outsourcing is the option left.Outsourcing is the option left.

HRP ProcessHRP Process
HR Need Forecast
HR Programming
HRP Implementation
Control & Evaluation
ShortageSurplus
Environment
Org objectives & policies
HR Supply Forecast

HRP Process (Contd.)HRP Process (Contd.)
 Environmental Scanning - :Environmental Scanning - :
1)1) Economic factorsEconomic factors
2)2) Technological ChangesTechnological Changes
3)3) Demographic changesDemographic changes
4)4) Political and legislative issuesPolitical and legislative issues
5)5) Social concernsSocial concerns

 Org objectives and policies-:Org objectives and policies-:
 HR plans need to be based on orgHR plans need to be based on org
objectives, this implies that theobjectives, this implies that the
objectives of the HR plan must beobjectives of the HR plan must be
derived from Org objectives.derived from Org objectives.

 HR Demand forecast-:HR Demand forecast-:
 The process of estimating the future quantityThe process of estimating the future quantity
and quality of people required.and quality of people required.
 The basis of forecast will be annual budgetThe basis of forecast will be annual budget
and long term corporate plans.and long term corporate plans.
 Demand forecasting must consider severalDemand forecasting must consider several
factors like internal (Budget constraints,factors like internal (Budget constraints,
employee separations, production level) andemployee separations, production level) and
external (Competition, laws, change inexternal (Competition, laws, change in
technology).technology).

 Demand forecasting techniques are-:Demand forecasting techniques are-:
 Managerial judgmentManagerial judgment
 Ratio trend analysisRatio trend analysis
 Delphi techniqueDelphi technique
 Regression analysisRegression analysis
 HR Supply forecasting-:HR Supply forecasting-:
 Supply forecasting measures the number ofSupply forecasting measures the number of
people likely to be available from within andpeople likely to be available from within and
outside an org.outside an org.

HRP Process (contd.)HRP Process (contd.)
 HR Programming-:HR Programming-:
 Once the Org’s HR Demand and SupplyOnce the Org’s HR Demand and Supply
are forecast, the two must beare forecast, the two must be
reconciled or balanced in order thatreconciled or balanced in order that
vacancies can be filled by the rightvacancies can be filled by the right
employee at the right time.employee at the right time.
 HR Plan Implementation-:HR Plan Implementation-:
 Implementation requires converting anImplementation requires converting an
HR plans into action. (Recruitment,HR plans into action. (Recruitment,
Training, Succession plan etc.)Training, Succession plan etc.)

HRP Process (contd.)HRP Process (contd.)
 Control and Evaluation -:Control and Evaluation -:
Critical to have proper control andCritical to have proper control and
regular checks to know theregular checks to know the
achievements of HRP.achievements of HRP.
Surplus ShortageSurplus Shortage
Restricted hiring R & SRestricted hiring R & S
VRS, Lay offVRS, Lay off

HRISHRIS
 HRIS is a database system that keepsHRIS is a database system that keeps
important information about employeesimportant information about employees
in a central and accessible location.in a central and accessible location.
 The information provided by HRIS canThe information provided by HRIS can
help the organisation to gainhelp the organisation to gain
competitive advantage. (SWOT ofcompetitive advantage. (SWOT of
org.)org.)

Information categories of HRISInformation categories of HRIS
 Basic non confidential information-:Basic non confidential information-:
Employee name, Org name, WorkEmployee name, Org name, Work
locationlocation
 General non confidential information -:General non confidential information -:
Social security number, Position relatedSocial security number, Position related
information (codes, tittles, effectiveinformation (codes, tittles, effective
date)date)

Info categories of HRIS (contd.)Info categories of HRIS (contd.)
 General information with salary -:General information with salary -:
Current salary, Effective date, AmountCurrent salary, Effective date, Amount
of last change, Reason for last change.of last change, Reason for last change.
 Confidential information with salary -:Confidential information with salary -:
Information of previous category,Information of previous category,
Educational dataEducational data

Info categories of HRIS (contd.)Info categories of HRIS (contd.)
 Extended information with salary -:Extended information with salary -:
Information of previous category, BonusInformation of previous category, Bonus
information, Projected salary increaseinformation, Projected salary increase
information, Performance evaluationinformation, Performance evaluation
information.information.

Job AnalysisJob Analysis
 Job analysis is the process of collectingJob analysis is the process of collecting
job related information. Suchjob related information. Such
information helps in the preparation ofinformation helps in the preparation of
job description and job specification.job description and job specification.
Job Analysis
Job Description Job Specification

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

Purposes of Job AnalysisPurposes of Job Analysis
 HRPHRP
 Recruitment & SelectionRecruitment & Selection
 Training & DevelopmentTraining & Development
 RemunerationRemuneration
 Safety & HealthSafety & Health
 Performance AppraisalPerformance Appraisal

Methods of Collecting Job DataMethods of Collecting Job Data
 ObservationObservation
 InterviewsInterviews
 QuestionnaireQuestionnaire
 Technical Conference MethodTechnical Conference Method

Process of Job AnalysisProcess of Job Analysis
Strategic ChoicesStrategic Choices
Gather InformationGather Information
Process InformationProcess Information
Job DescriptionJob Description
Job SpecificationJob Specification

Process (contd.)Process (contd.)
 Strategic Choices –:Strategic Choices –:
1.1. Employee InvolvementEmployee Involvement
2.2. Level of DetailsLevel of Details
3.3. When and How oftenWhen and How often
4.4. Past oriented and Future orientedPast oriented and Future oriented
 Gather Information –:Gather Information –:
1.1. What type of Data to Collected (machine,What type of Data to Collected (machine,
tools & work activities)tools & work activities)
2.2. Data collection methodsData collection methods
3.3. Who to collect Data (Trained analyst,Who to collect Data (Trained analyst,
Supervisors, Job incumbents)Supervisors, Job incumbents)

 Information Processing -:Information Processing -:
How collected information will be usedHow collected information will be used
in forming Job Description and Jobin forming Job Description and Job
Specification.Specification.
 Job description –:Job description –:
 Job Specification -:Job Specification -:

Problems with Job AnalysisProblems with Job Analysis
 Support from Top managementSupport from Top management
 Single Means or SourceSingle Means or Source
 No Training or MotivationNo Training or Motivation
 Activities may be DistortedActivities may be Distorted

Job DesignJob Design
 Job Design is defines as -: It integratesJob Design is defines as -: It integrates
work content (tasks, function), thework content (tasks, function), the
rewards & the qualifications requiredrewards & the qualifications required
(skills, knowledge) for each job in a way(skills, knowledge) for each job in a way
that meets the need of the employeesthat meets the need of the employees
and the organisation.and the organisation.

Job DesignJob Design
 Job Design involves three steps -:Job Design involves three steps -:
1)1) Specification of individual tasks.Specification of individual tasks.
2)2) Specification of the methods ofSpecification of the methods of
performing each tasks.performing each tasks.
3)3) Combination of tasks into specific jobsCombination of tasks into specific jobs
to be assigned to individuals.to be assigned to individuals.

Methods of Job DesignMethods of Job Design
Job Design Methods -:Job Design Methods -:
Job
Design
Job
Simplification
Job
Enlargement
Job
Enrichment
Job
Rotation

RecruitmentRecruitment
 The process of finding and attractingThe process of finding and attracting
capable applicants for employment. Thecapable applicants for employment. The
process begins when new recruits areprocess begins when new recruits are
sought and ends when their applicationssought and ends when their applications
are submitted. The result is a pool ofare submitted. The result is a pool of
applicants from which new employeesapplicants from which new employees
are selected.are selected.
 Recruitment is a process of invitingRecruitment is a process of inviting
applications from prospectiveapplications from prospective
employees.employees.
 Recruitment is a positive process.Recruitment is a positive process.

Purpose & Importance ofPurpose & Importance of
RecruitmentRecruitment
 Determine the present and futureDetermine the present and future
requirements of the organisation inrequirements of the organisation in
relation with the HRP and Job Analysis.relation with the HRP and Job Analysis.
 Increase the pool of job candidates atIncrease the pool of job candidates at
minimum cost.minimum cost.
 Meet the organisation’s legal and socialMeet the organisation’s legal and social
obligations regarding the composition ofobligations regarding the composition of
its workforce.its workforce.

Sources of RecruitmentSources of Recruitment
 Internal Sources -:Internal Sources -:
Transfer , Promotions.Transfer , Promotions.
 External Sources-:External Sources-:
Press Advertisements , EducationalPress Advertisements , Educational
Institutions, Placement Agencies,Institutions, Placement Agencies,
Employment Exchange, LabourEmployment Exchange, Labour
Contractors, Recruitment at factoryContractors, Recruitment at factory
Gate.Gate.

Recruitment ProcessRecruitment Process
Recruiting Required PersonnelRecruiting Required Personnel
Search for Perspective EmployeesSearch for Perspective Employees
Internal SourcesInternal Sources
External SourcesExternal Sources
Evaluating effectiveness of processEvaluating effectiveness of process

Recruitment ProcessRecruitment Process
 Personnel Requisition -: Requisition forPersonnel Requisition -: Requisition for
recruitment from other deptt., Containsrecruitment from other deptt., Contains
info like no of person required, duties toinfo like no of person required, duties to
be performed, desired qualification,be performed, desired qualification,
time of appointment, info about job.time of appointment, info about job.
 Locating and developing sources ofLocating and developing sources of
required no and type of employees.required no and type of employees.
 Identifying the prospective employeesIdentifying the prospective employees
with required characteristics.with required characteristics.

 Communicating the info about the org,Communicating the info about the org,
the job and the terms and condition ofthe job and the terms and condition of
service.service.
 Encouraging the identified candidatesEncouraging the identified candidates
to apply for jobs in the org.to apply for jobs in the org.
 Evaluating the effectiveness ofEvaluating the effectiveness of
recruitment process.recruitment process.

Alternatives to RecruitmentAlternatives to Recruitment
 OvertimeOvertime
 Employee LeasingEmployee Leasing
 Temporary EmploymentTemporary Employment

SelectionSelection
 Selection is the process of pickingSelection is the process of picking
individuals (out of the pool of jobindividuals (out of the pool of job
applicants) with requisite qualificationsapplicants) with requisite qualifications
and competence to fill jobs in theand competence to fill jobs in the
 Selection is a negetive process.Selection is a negetive process.

Selection ProcedureSelection Procedure
 Preliminary InterviewPreliminary Interview
 Application blankApplication blank
 Selection TestSelection Test
 Employment InterviewEmployment Interview
 Reference Check and BackgroundReference Check and Background
AnalysisAnalysis
 Medical ExaminationMedical Examination
 Final ApprovalFinal Approval
 EvaluationEvaluation

Test and InterviewTest and Interview
 Psychological tests -: Aptitude testPsychological tests -: Aptitude test
 Informal InterviewInformal Interview
 Formal InterviewFormal Interview
 Depth InterviewDepth Interview
 Stress InterviewStress Interview

Induction Or OrientationInduction Or Orientation
 Planned introduction of employees toPlanned introduction of employees to
their jobs, their co – workers and thetheir jobs, their co – workers and the
 Orientation also called Induction, isOrientation also called Induction, is
designed to provide a new employee withdesigned to provide a new employee with
the information he or she needs tothe information he or she needs to
function comfortably and effectively infunction comfortably and effectively in
the organisation.the organisation.

Objectives of InductionObjectives of Induction
 To help new comer overcome his naturalTo help new comer overcome his natural
shyness and nervousness in meeting newshyness and nervousness in meeting new
people in the environment.people in the environment.
 To develop among the newcomers aTo develop among the newcomers a
sense of belonging and loyalty to thesense of belonging and loyalty to the
 To develop a close and cordialTo develop a close and cordial
relationship between newcomers and therelationship between newcomers and the
old employees and their supervisor.old employees and their supervisor.

Objectives (contd.)Objectives (contd.)
 To ensure that the newcomers do notTo ensure that the newcomers do not
form negative or false impression andform negative or false impression and
attitude towards the organisation orattitude towards the organisation or
the job because first impression is thethe job because first impression is the
last impression.last impression.
 To give newcomers necessaryTo give newcomers necessary
information such as leave rules, restinformation such as leave rules, rest
period, locker room etc.period, locker room etc.

Advantages of Formal InductionAdvantages of Formal Induction
 Helps in build up a two way channel ofHelps in build up a two way channel of
communication between management andcommunication between management and
workers.workers.
 Proper induction facilitates informalProper induction facilitates informal
relations and teamwork amongrelations and teamwork among
 Effective induction helps to integrateEffective induction helps to integrate
the new employees into the organisationthe new employees into the organisation
and to develop the sense of belonging.and to develop the sense of belonging.

Types of Induction ProgrammeTypes of Induction Programme
 FormalFormal
 InformalInformal
 IndividualIndividual
 collectivecollective

Contents of Induction ProgrammeContents of Induction Programme
 History and operation of companyHistory and operation of company
 Products and services of companyProducts and services of company
 Policies and procedures of companyPolicies and procedures of company
 Grievance procedureGrievance procedure
 Benefit and services for employeesBenefit and services for employees
 Opportunities for training andOpportunities for training and
development, promotion, transfer etc.development, promotion, transfer etc.

PlacementPlacement
 Placement refers to the allocation ofPlacement refers to the allocation of
people to jobs. It includes initialpeople to jobs. It includes initial
assignment of new employees andassignment of new employees and
promotion, transfer, or demotion ofpromotion, transfer, or demotion of
present employees.present employees.

Placement ProblemsPlacement Problems
 Difficulty with the placement is thatDifficulty with the placement is that
we tend to look at the individual butwe tend to look at the individual but
not at the job.not at the job.
 Job in this context may be classifiedJob in this context may be classified
into three categories.into three categories.
1.1. IndependentIndependent
2.2. SequentialSequential
3.3. PooledPooled

Training & DevelopmentTraining & Development
 Training is an attempt to improveTraining is an attempt to improve
current or future employeecurrent or future employee
performance by increasing an employeesperformance by increasing an employees
ability to perform through learning,ability to perform through learning,
usually by changing the employee’susually by changing the employee’s
attitude or increasing his or her skillsattitude or increasing his or her skills
and knowledge.and knowledge.
 Training refers to the process ofTraining refers to the process of
imparting specific skills. (Employees)imparting specific skills. (Employees)

T & DT & D
 Development refers to learningDevelopment refers to learning
opportunities designed to helpopportunities designed to help
employees grow. (Executive)employees grow. (Executive)
 Education is theoretical learning inEducation is theoretical learning in
classroom.classroom.

T & DT & D
 The need for training and developmentThe need for training and development
is determined by the employee’sis determined by the employee’s
performance deficiency computed asperformance deficiency computed as
follows-:follows-:
Training & Development need = StandardTraining & Development need = Standard
Performance – Actual PerformancePerformance – Actual Performance

Difference between T & EduDifference between T & Edu
 Training -:Training -:
1. Application base,1. Application base,
2.Job Experience,2.Job Experience,
3. Specific Task,3. Specific Task,
4. Narrow Perspective.4. Narrow Perspective.
 Education -:Education -:
1.Theoretical Orientation,1.Theoretical Orientation,
2. Classroom learning,2. Classroom learning,
3. General Concepts,3. General Concepts,
4. Broad Perspective.4. Broad Perspective.

Inputs in T & DInputs in T & D
 SkillsSkills
 EducationEducation
 DevelopmentDevelopment
 EthicsEthics
 Attitudinal ChangesAttitudinal Changes
 Decision making and Problem solvingDecision making and Problem solving
skillsskills

T & D as a source of CompetitiveT & D as a source of Competitive
AdvantageAdvantage
 T & D offer competitive advantage to aT & D offer competitive advantage to a
firm by removing performancefirm by removing performance
deficiencies, making staff stay long,deficiencies, making staff stay long,
minimising accidents, Scrap & damageminimising accidents, Scrap & damage
and meeting future employees needs.and meeting future employees needs.

Training ProgramTraining Program
Need AssessmentNeed Assessment
Deriving Instructional ObjectivesDeriving Instructional Objectives
Designing Training & Development ProgramDesigning Training & Development Program
Implementation of Training ProgramImplementation of Training Program
EvaluationEvaluation

Training ProcessTraining Process
 Need Assessment -: Diagnoses the presentNeed Assessment -: Diagnoses the present
problems & future challenges to be metproblems & future challenges to be met
through training and development.through training and development.
 Need Assessment Methods -: As followsNeed Assessment Methods -: As follows
 Group Assessment – (intro of new product.)Group Assessment – (intro of new product.)
1.1. Org goals & objectives.Org goals & objectives.
2.2. Personnel skill inventoriesPersonnel skill inventories
3.3. Exit interviewsExit interviews
4.4. Customers Satisfaction dataCustomers Satisfaction data

 Needs Assessment & Remedial measuresNeeds Assessment & Remedial measures
Lack of Skill &
Knowledge
Training
Non – Training
Measures
Other Causes
Performance
Deficiency

Training processTraining process
 Individual Analysis -:Individual Analysis -:
1.1. Performance AppraisalPerformance Appraisal
2.2. InterviewsInterviews
3.3. QuestionnairesQuestionnaires
4.4. Attitude Surveys.Attitude Surveys.
 Issues in need assessment -:Issues in need assessment -:
1.1. Org SupportOrg Support
2.2. Org AnalysisOrg Analysis
3.3. Task and KSA analysisTask and KSA analysis
4.4. Person AnalysisPerson Analysis

 Deriving an instructional objectives -:Deriving an instructional objectives -:
It help to know the inputs for the trainingIt help to know the inputs for the training
program and as well as for the measures ofprogram and as well as for the measures of
success that would help assess effectivenesssuccess that would help assess effectiveness
of the training program.of the training program.
 Designing training & development program -:Designing training & development program -:
1. Who are the trainees?1. Who are the trainees?
2. Who are the trainers?2. Who are the trainers?
3. Methods & techniques?3. Methods & techniques?
4. Level of training?4. Level of training?
5. Learning principles?5. Learning principles?
6. Where to conduct the program?6. Where to conduct the program?

Training processTraining process
 Implementation of training programImplementation of training program
 EvaluationEvaluation

Types of trainingTypes of training
 On the job -:On the job -:
1.1. Orientation Training ie InductionOrientation Training ie Induction
2.2. Job instruction – Info about how toJob instruction – Info about how to
conduct the job.conduct the job.
3.3. Apprentice training - ITIApprentice training - ITI
4.4. Internship / Assistantship - DoctorsInternship / Assistantship - Doctors
5.5. Job rotation - BankJob rotation - Bank
6.6. Coaching – Cricket teamCoaching – Cricket team

Types of trainingTypes of training
 Off the job -:Off the job -:
1.1. Vestibule – Utilisation of actual equipments.Vestibule – Utilisation of actual equipments.
2.2. Lecture – Verbal presentation ofLecture – Verbal presentation of
information.information.
3.3. Role playing – is to create realistic situation.Role playing – is to create realistic situation.
4.4. Simulation – technique that duplicates asSimulation – technique that duplicates as
nearly as possible actual conditionnearly as possible actual condition
encountered on the job.encountered on the job.
5.5. Laboratory / Sensitivity training – smallerLaboratory / Sensitivity training – smaller
group ie 12 or less. Provides awarenessgroup ie 12 or less. Provides awareness
about their own behaviour & how otherabout their own behaviour & how other
percieve them.percieve them.

Performance AppraisalPerformance Appraisal
 It is the systematic evaluation of theIt is the systematic evaluation of the
individual with respect to his or herindividual with respect to his or her
performance on the job and his or herperformance on the job and his or her
potential for development.potential for development.

Objectives of Performance AppraisalObjectives of Performance Appraisal
 Promotions based on competence andPromotions based on competence and
performance.performance.
 To confirm the services of probationaryTo confirm the services of probationary
employees upon their completing theemployees upon their completing the
probationary period satisfactorily.probationary period satisfactorily.
 To asses the training and developmentTo asses the training and development
needs of employees.needs of employees.

Objective of Performance AppraisalObjective of Performance Appraisal
 To decide upon pay rise where regularTo decide upon pay rise where regular
pay scales have not been fixed.pay scales have not been fixed.
 Finally, performance Appraisal can beFinally, performance Appraisal can be
used to determine whether HRused to determine whether HR
programmes such as selection, trainingprogrammes such as selection, training
and transfers have been effective orand transfers have been effective or
not.not.

Relationship of PA and Job AnalysisRelationship of PA and Job Analysis
 Job Analysis – Describe work andJob Analysis – Describe work and
Personnel requirement of a particularPersonnel requirement of a particular
job.job.
 Performance Standards – Translate jobPerformance Standards – Translate job
requirements into levels of acceptablerequirements into levels of acceptable
or unacceptable performance.or unacceptable performance.
 Performance Appraisal – Describes thePerformance Appraisal – Describes the
job relevant strengths and weaknessesjob relevant strengths and weaknesses
of each individual.of each individual.

PA and Competitive AdvantagePA and Competitive Advantage
 Improving PerformanceImproving Performance
 Making Correct decisionsMaking Correct decisions
 Minimizing job dissatisfaction and turnMinimizing job dissatisfaction and turn
overover
 Consistency between organizationalConsistency between organizational
strategystrategy

Performance Appraisal processPerformance Appraisal process
Objective of Performance AppraisalObjective of Performance Appraisal
Establish Job expectationsEstablish Job expectations
Design an Appraisal ProgrammeDesign an Appraisal Programme
Appraise PerformanceAppraise Performance
Performance InterviewPerformance Interview
Use Appraisal Data for Appropriate PurposesUse Appraisal Data for Appropriate Purposes

P A ProcessP A Process
 Objective – Correct or Improve performanceObjective – Correct or Improve performance
 Expectation – In forming what is expectedExpectation – In forming what is expected
from employeefrom employee
 Design Appraisal – Helps in posing questionDesign Appraisal – Helps in posing question
which needs answers like Formal v/s Informalwhich needs answers like Formal v/s Informal
Appraisal, whose performance should be ratedAppraisal, whose performance should be rated
(group, team, individual), Who are Raters,(group, team, individual), Who are Raters,
What should be rated (Quality, Quantity,What should be rated (Quality, Quantity,
Time, Cost effectiveness, Need ForTime, Cost effectiveness, Need For
Supervision), When to Evaluate, WhatSupervision), When to Evaluate, What
Methods to be opted.Methods to be opted.

P A ProcessP A Process
 Appraise the Performance – Quantity,Appraise the Performance – Quantity,
Quality and time of Output.Quality and time of Output.
 Performance InterviewPerformance Interview
 Use the Appraisal Data – HRP,Use the Appraisal Data – HRP,
Promotion, Remuneration, Training andPromotion, Remuneration, Training and
Development etc.Development etc.

Performance Appraisal MethodsPerformance Appraisal Methods
 90 Degree – Only Supervisor is90 Degree – Only Supervisor is
Evaluator.Evaluator.
 180 Degree – Superior and Peer Group180 Degree – Superior and Peer Group
 270 degree – Superior, Peer and270 degree – Superior, Peer and
SubordinatesSubordinates
 360 Degree – Superior, Peer,360 Degree – Superior, Peer,
Subordinates,Subordinates, ClientsClients and Selfand Self
 720 Degree - Superior, Peer,720 Degree - Superior, Peer,
Subordinates, Clients, Self and FamilySubordinates, Clients, Self and Family

 Past Oriented Methods - :Past Oriented Methods - :
 Rating Scales – Excellent-Good-Acceptable-Rating Scales – Excellent-Good-Acceptable-
Fair-Poor (Simplest & most popular)Fair-Poor (Simplest & most popular)
 Checklist – Yes / No (Is employee interestedChecklist – Yes / No (Is employee interested
in job? Does have adequate qualification?)in job? Does have adequate qualification?)
 Forced Choice Method – Two Choices and noForced Choice Method – Two Choices and no
other option (The rater is forced to selectother option (The rater is forced to select
statements which are readymade) Learns faststatements which are readymade) Learns fast
----- Work hard.----- Work hard.
 Critical Incident Method – this approachCritical Incident Method – this approach
focuses on certain critical behaviours of anfocuses on certain critical behaviours of an
employeeemployee

 Behaviourally Anchored Rating Scales –Behaviourally Anchored Rating Scales –
On the basis of the behavioural criteriaOn the basis of the behavioural criteria
of the employee rating is being done byof the employee rating is being done by
the superior.the superior.
 Field Review Method – Some one outsideField Review Method – Some one outside
the assessee’s own department, usuallythe assessee’s own department, usually
from corporate office or HRfrom corporate office or HR
department.department.

Future Oriented MethodsFuture Oriented Methods
 360 Degree Appraisal360 Degree Appraisal
 Assessment Centers (PotentialAssessment Centers (Potential
Appraisal)Appraisal)
 Psychological CounselingPsychological Counseling

Problems in Performance AppraisalProblems in Performance Appraisal
 Leniency or SeverityLeniency or Severity
 Central TendencyCentral Tendency
 Halo ErrorHalo Error
 Rater Effect – Rating based on ratersRater Effect – Rating based on raters
attitude towards rateeattitude towards ratee
 Primacy or Recency effectsPrimacy or Recency effects
 Perceptual Set – Raters perceptionPerceptual Set – Raters perception

Job EvaluationJob Evaluation
 Job evaluation seeks to determine theJob evaluation seeks to determine the
relative worth of each job so thatrelative worth of each job so that
salary differentials can be established.salary differentials can be established.
 In job evaluation only jobs are ratedIn job evaluation only jobs are rated
unlike in performance appraisal whereunlike in performance appraisal where
only job holders are rated.only job holders are rated.

Job Evaluation ProcessJob Evaluation Process
Objectives of Job EvaluationObjectives of Job Evaluation
Job AnalysisJob Analysis
Job Description Job SpecificationJob Description Job Specification
Job Evaluation ProgrammeJob Evaluation Programme
Wage SurveyWage Survey
Employee ClassificationEmployee Classification

Methods of Job EvaluationMethods of Job Evaluation
 Non Analytical MethodsNon Analytical Methods
 Analytical MethodsAnalytical Methods

Non Analytical methodNon Analytical method
 Ranking Method – The evaluationRanking Method – The evaluation
committee assesses the worth of eachcommittee assesses the worth of each
job on the basis of its title or on itsjob on the basis of its title or on its
contents, if the later is available.contents, if the later is available.
 Job Grading Method – There is aJob Grading Method – There is a
yardstick in the form of job classes oryardstick in the form of job classes or
grades.grades.

CompensationCompensation
 Remuneration is the compensation anRemuneration is the compensation an
employee receives in return for his oremployee receives in return for his or
her contribution to the organisation.her contribution to the organisation.
 Society – Some people see pay as aSociety – Some people see pay as a
measure of justice.measure of justice.
 Stockholders – To stockholders,Stockholders – To stockholders,
executive pay is of special interest, asexecutive pay is of special interest, as
linking executive pay to companylinking executive pay to company
performance is supposed to increaseperformance is supposed to increase
stockholders wealth.stockholders wealth.

CompensationCompensation
 Managers – Compensation influencesManagers – Compensation influences
their success in two ways. First, it is atheir success in two ways. First, it is a
major expense. In addition to treatingmajor expense. In addition to treating
it as an expense, a manager also uses itit as an expense, a manager also uses it
to influence employee behaviour andto influence employee behaviour and
improve organisation performance.improve organisation performance.
 Employees – The pay individuals receiveEmployees – The pay individuals receive
in return for the work they perform isin return for the work they perform is
usually the major source of theirusually the major source of their
financial security.financial security.

Components of CompensationComponents of Compensation
 Financial – :Financial – :
1.1. Hourly and monthly rated wage andHourly and monthly rated wage and
salary.salary.
2.2. Incentives ie individual plans and groupIncentives ie individual plans and group
plans.plans.
3.3. Fringe benefits ie PF , Gratuity,Fringe benefits ie PF , Gratuity,
Medical care, Group Insurance.Medical care, Group Insurance.
4.4. Perquisites are Company car, furnishedPerquisites are Company car, furnished
house (Offered to retain competenthouse (Offered to retain competent
executives)executives)

Components of CompensationComponents of Compensation
 Non Financial -: Recognition, GrowthNon Financial -: Recognition, Growth
Prospects.Prospects.

Factors Influencing EmployeeFactors Influencing Employee
RemunerationRemuneration
 External -:External -:
1.1. Labour Market – Demand & Supply,Labour Market – Demand & Supply,
Going RateGoing Rate
2.2. Cost of Living – Escalatory clauseCost of Living – Escalatory clause
3.3. Labour UnionsLabour Unions
4.4. Labour Laws – Payment of wagesLabour Laws – Payment of wages
act1936, Minimum wages act 1948,act1936, Minimum wages act 1948,
Payment of Bonus act 1965, EqualPayment of Bonus act 1965, Equal
remuneration act 1976, Payment ofremuneration act 1976, Payment of
gratuity act 1972.gratuity act 1972.
5.5. SocietySociety

Factors Influences EmployeeFactors Influences Employee
RemunerationRemuneration
 Internal -:Internal -:
1.1. Business Strategy – Rapid growth =Business Strategy – Rapid growth =
High PayHigh Pay
2.2. Job Evaluation and PerformanceJob Evaluation and Performance
AppraisalAppraisal
3.3. Employee – Performance , Experience,Employee – Performance , Experience,
SenioritySeniority

Devising a Remuneration PlanDevising a Remuneration Plan
Job DescriptionJob Description
Job EvaluationJob Evaluation
Job HierarchyJob Hierarchy
Pay SurveyPay Survey
Pricing jobsPricing jobs

Challenges of RemunerationChallenges of Remuneration
 Salary reviewsSalary reviews
 Pay secrecyPay secrecy
 Skill based paySkill based pay
 Employee ParticipationEmployee Participation
 Above Market or Below Market RatesAbove Market or Below Market Rates
 Monetary V/S Non Monetary RewardsMonetary V/S Non Monetary Rewards
 Comparable WorthComparable Worth

Concept of WagesConcept of Wages
 Minimum Wage – Wage for sustenance of lifeMinimum Wage – Wage for sustenance of life
plus for preservation of the efficiency ofplus for preservation of the efficiency of
worker. (Determined through Legislation)worker. (Determined through Legislation)
 Fair Wage – Equal to the rate prevailing in theFair Wage – Equal to the rate prevailing in the
same trade and in the neighborhood or equalsame trade and in the neighborhood or equal
to the predominant rate for similar workto the predominant rate for similar work
throughout the country.throughout the country.
 Living Wage – Higher than fair wage. ProvidesLiving Wage – Higher than fair wage. Provides
for bare essentials plus frugal comforts.for bare essentials plus frugal comforts.

IncentivesIncentives
 Incentives are variable rewards grantedIncentives are variable rewards granted
to employees according to variations into employees according to variations in
their performance. The other name fortheir performance. The other name for
incentives is “Payments by results”. Butincentives is “Payments by results”. But
the word ‘Incentives’ is mostthe word ‘Incentives’ is most
appropriate because of its motivationalappropriate because of its motivational
content.content.

Importance of IncentivesImportance of Incentives
 Motivation of worker for higherMotivation of worker for higher
efficiency and greater output.efficiency and greater output.
 Earning of employees would be enhancedEarning of employees would be enhanced
due to incentives.due to incentives.
 Increased earning helps employee toIncreased earning helps employee to
improve standard of living.improve standard of living.
 Other advantages – ReducedOther advantages – Reduced
Supervision, better utilisation ofSupervision, better utilisation of
equipments, reduced lost time, reducedequipments, reduced lost time, reduced
absenteeism and turnover and increasedabsenteeism and turnover and increased
output.output.

Disadvantages of IncentivesDisadvantages of Incentives
 Deteriorate the quality of product asDeteriorate the quality of product as
employee want to earn more by producingemployee want to earn more by producing
more quantity of products.more quantity of products.
 When job is restudied there are chances thatWhen job is restudied there are chances that
it may yield in lower earning in terms ofit may yield in lower earning in terms of
earning incentives as new and high challengingearning incentives as new and high challenging
jobs offers more scope for earning asjobs offers more scope for earning as
compared to old jobs.compared to old jobs.
 Increases jealousy among the workers as theIncreases jealousy among the workers as the
person earning less is jealous of the personperson earning less is jealous of the person
earning more.earning more.

Employee benefitsEmployee benefits
 Employee benefits and services includeEmployee benefits and services include
any benefits that the employee receivesany benefits that the employee receives
in addition to direct remuneration.in addition to direct remuneration.
 Employee benefits and services areEmployee benefits and services are
alternatively known as fringes or hiddenalternatively known as fringes or hidden
payroll.payroll.

Types of employee benefitsTypes of employee benefits
 For fringe benefits three criteria’sFor fringe benefits three criteria’s
are needed to be fulfilled.are needed to be fulfilled.
1)1) It should be computable in terms ofIt should be computable in terms of
money.money.
2)2) The amount of benefit is not generallyThe amount of benefit is not generally
predetermined.predetermined.
3)3) No contract, indicating when the sumNo contract, indicating when the sum
is payable, should exists.is payable, should exists.

Fringe benefitsFringe benefits
 Legally required payments -: Old age,Legally required payments -: Old age,
survivors, disability and healthsurvivors, disability and health
insurance.insurance.
 Contingent benefits -: pension plans,Contingent benefits -: pension plans,
group life insurance, group healthgroup life insurance, group health
insurance, maternity leave, sick leave,insurance, maternity leave, sick leave,
service awards.service awards.
 Other benefits -: payments for the timeOther benefits -: payments for the time
not worked like holidays, leaves.not worked like holidays, leaves.

Benefits and servicesBenefits and services
 Treats -: free lunches, festival bashes,Treats -: free lunches, festival bashes,
dinner for the family.dinner for the family.
 Awards -: trophies, certificates, letterAwards -: trophies, certificates, letter
of appreciation.of appreciation.
 Office environment -: flexible hours.Office environment -: flexible hours.
 Tokens -: movie tickets, vacation trips.Tokens -: movie tickets, vacation trips.
 On the job -: job rotation, representingOn the job -: job rotation, representing
the company at public meetings.the company at public meetings.

Administration of fringe benefitsAdministration of fringe benefits
Establish benefits objectivesEstablish benefits objectives
Assess environmental factorsAssess environmental factors
Access competitivenessAccess competitiveness
Communicate benefit informationCommunicate benefit information
Control benefit cost and evaluationControl benefit cost and evaluation

Executive remunerationExecutive remuneration
 Components of remuneration -:Components of remuneration -:
1)1) SalarySalary
2)2) BonusBonus
3)3) CommissionCommission
4)4) Long term incentivesLong term incentives
5)5) PerksPerks

Industrial RelationsIndustrial Relations
 IR is concerned with the system , rulesIR is concerned with the system , rules
and procedures used by unions andand procedures used by unions and
employers to determine the reward foremployers to determine the reward for
effort and their conditions ofeffort and their conditions of
employment, to protect the interest ofemployment, to protect the interest of
the employed and their employers, andthe employed and their employers, and
to regulate the ways in which employersto regulate the ways in which employers
treat their employees.treat their employees.

IR cont’dIR cont’d
 IR is concerned with the relationshipIR is concerned with the relationship
between management and workers and thebetween management and workers and the
role of regulatory mechanism in resolvingrole of regulatory mechanism in resolving
any industrial dispute.any industrial dispute.
 IR specially covers the following areas-:IR specially covers the following areas-:
1)1) Collective bargainingCollective bargaining
2)2) Role of management , unions and govt.Role of management , unions and govt.
3)3) Machinery for resolution of industrialMachinery for resolution of industrial
disputedispute
4)4) Individual grievance and disciplinary policyIndividual grievance and disciplinary policy
and practiceand practice

Approaches to IRApproaches to IR
 Unitary Approach – Direct negotiation withUnitary Approach – Direct negotiation with
employee and participation of Govt. Tribunals,employee and participation of Govt. Tribunals,
and unions are not sought.and unions are not sought.
 Pluralistic Approach – (a) org as coalitions ofPluralistic Approach – (a) org as coalitions of
competing interest, where the management’scompeting interest, where the management’s
role is to mediate amongst the differentrole is to mediate amongst the different
interest group.interest group.
(b) TU are legitimate representatives of(b) TU are legitimate representatives of
employee interest.employee interest.
(c) Stability in IR is a product of concession and(c) Stability in IR is a product of concession and
compromises between management and unions.compromises between management and unions.

Approaches to IRApproaches to IR
 Marxist Approach – same as PluralisticMarxist Approach – same as Pluralistic
but feels conflict arises not because ofbut feels conflict arises not because of
rift between management and workers,rift between management and workers,
but because of the division in thebut because of the division in the
society between those who ownsociety between those who own
resources and who have only labour toresources and who have only labour to
offer.offer.

Parties to IRParties to IR
 EmployeesEmployees
 Employee AssociationsEmployee Associations
 GovernmentGovernment
Employer – Employee – RelationsEmployer – Employee – Relations
 EmployersEmployers
 Employer AssociationsEmployer Associations
 Courts and TribunalsCourts and Tribunals

Trade UnionsTrade Unions
 TU are voluntary organisations ofTU are voluntary organisations of
employees or employers formed toemployees or employers formed to
promote and protect their interestpromote and protect their interest
through collective action. Though thethrough collective action. Though the
terms employees and employers areterms employees and employers are
used, when we say trade unions theyused, when we say trade unions they
generally refer to employees.generally refer to employees.

Why do employees join unions?Why do employees join unions?
 DissatisfactionDissatisfaction
 Lack of powerLack of power
 Union InstrumentalityUnion Instrumentality

Union TacticsUnion Tactics
 Unions employ several tactics to dealUnions employ several tactics to deal
with management are-:with management are-:
1)1) StrikeStrike
2)2) Invoking political patronageInvoking political patronage
3)3) BlackmailingBlackmailing
4)4) UnionisingUnionising

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

Strategic choices before UnionsStrategic choices before Unions
 Bread and Butter V/S Political objectiveBread and Butter V/S Political objective
 Adversarial V/S Co operative roleAdversarial V/S Co operative role
 Traditional issues V/S New servicesTraditional issues V/S New services

Strategies and Tactics for remainingStrategies and Tactics for remaining
Union - FreeUnion - Free
 Effective supervisionEffective supervision
 Open communicationOpen communication
 Effective personnel searchEffective personnel search
 Healthy and Safe working environmentHealthy and Safe working environment
 Effective Employer and EmployeeEffective Employer and Employee
relationsrelations
 Effective remmunerationEffective remmuneration

Some of the major Trade UnionsSome of the major Trade Unions
 INTUC – Indian National Trade UnionINTUC – Indian National Trade Union
CongressCongress
 CITU – Centre of Indian Trade UnionsCITU – Centre of Indian Trade Unions
 HMS – Hind Mazdoor SabhaHMS – Hind Mazdoor Sabha
 AITUC – All India Trade Union CongressAITUC – All India Trade Union Congress
 BMS – Bhartiya Mazdoor SanghBMS – Bhartiya Mazdoor Sangh
 UTUC – United Trade Union CongressUTUC – United Trade Union Congress

Disputes and Their ResolutionDisputes and Their Resolution
 Acc to Industrial Dispute Act, 1947,Acc to Industrial Dispute Act, 1947,
industrial dispute mean any dispute orindustrial dispute mean any dispute or
difference between employers anddifference between employers and
employers or between employers andemployers or between employers and
workmen, workmen and workmen, whichworkmen, workmen and workmen, which
is connected with the employment oris connected with the employment or
non employment or terms ofnon employment or terms of
employment.employment.

Causes of DisputesCauses of Disputes
 Wage DemandsWage Demands
 Union Rivalry (Singareni Collieries - 445Union Rivalry (Singareni Collieries - 445
TU – loss 3.12 million tones)TU – loss 3.12 million tones)
 Political Interference (ideology differs,Political Interference (ideology differs,
union works on party lines, CITU-union works on party lines, CITU-
Communist love to fight but hate to winCommunist love to fight but hate to win
so they have not signed any settlementso they have not signed any settlement
in last 15 years)in last 15 years)

Causes of DisputesCauses of Disputes
 Unfair Labour Practice - :Unfair Labour Practice - :
a)a) Management unwillingness to recogniseManagement unwillingness to recognise
a particular TU and dilatory tactics.a particular TU and dilatory tactics.
b)b) Negotiation of settlement of disputeNegotiation of settlement of dispute
the representatives of employers takethe representatives of employers take
the side of management which resultsthe side of management which results
in disputes.in disputes.
 Multiplicity of Labour LawsMultiplicity of Labour Laws

Settlement of DisputesSettlement of Disputes
 Collective Bargaining (reps of employees &Collective Bargaining (reps of employees &
employers meet to solve the issue)employers meet to solve the issue)
 Collective Bargaining Process-:Collective Bargaining Process-:
a)a) Preparing for negotiationPreparing for negotiation
b)b) Identifying bargaining issuesIdentifying bargaining issues
c)c) NegotiationsNegotiations
d)d) Reaching the agreementReaching the agreement
e)e) Ratifying the agreementRatifying the agreement
f)f) Administration of agreementAdministration of agreement

Settlement Cont’d.Settlement Cont’d.
 Collective Bargaining takes place whenCollective Bargaining takes place when
representatives of trade union meetrepresentatives of trade union meet
management representatives tomanagement representatives to
determine employee wages and benefitsdetermine employee wages and benefits
and to solve other issues.and to solve other issues.
 Collective Bargaining is the mostCollective Bargaining is the most
effective method of resolving industrialeffective method of resolving industrial
disputes.disputes.

Settlement of DisputesSettlement of Disputes
 Grievance ProcedureGrievance Procedure
 ArbitrationArbitration
 ConciliationConciliation
 AdjudicationAdjudication
 Consultative MachineryConsultative Machinery

Settlement Cont’d.Settlement Cont’d.
 Grievance Procedure -:Grievance Procedure -:
Stage One (Sectional Head) 5 daysStage One (Sectional Head) 5 days
Stage two (Deptt Head) 5 daysStage two (Deptt Head) 5 days
Stage Three (Divisional Head) 10 daysStage Three (Divisional Head) 10 days
Fourth Stage (Union)Fourth Stage (Union)

Settlement Cont’dSettlement Cont’d
 Arbitrations refers to the procedure in whichArbitrations refers to the procedure in which
a neutral third party studies the dispute,a neutral third party studies the dispute,
listen to both the parties and collects thelisten to both the parties and collects the
information , and make recommendationsinformation , and make recommendations
which are binding on both the parties.which are binding on both the parties.
 Conciliation -: As per the Industrial DisputeConciliation -: As per the Industrial Dispute
act 1947, Sec 4, says that the govt shallact 1947, Sec 4, says that the govt shall
appoint conciliation officers and their mainappoint conciliation officers and their main
duty is to mediate and promote settlement ofduty is to mediate and promote settlement of
Industrial Dispute.Industrial Dispute.

Settlement Cont’dSettlement Cont’d
 Adjudication a mandatory settlement ofAdjudication a mandatory settlement of
Industrial Dispute by a labour court orIndustrial Dispute by a labour court or
Tribunal.Tribunal.
 Consultative MachineryConsultative Machinery

Safety and HealthSafety and Health
There is a sayingThere is a saying
““ Precaution is always better than cure”.Precaution is always better than cure”.

Bhopal Gas TragedyBhopal Gas Tragedy
23 years ago, there was a gas leak from23 years ago, there was a gas leak from
a Union Carbide plant which led to killinga Union Carbide plant which led to killing
over 20000 thousands of people inover 20000 thousands of people in
Bhopal and become the worst industrialBhopal and become the worst industrial
accident in India due to negligence ofaccident in India due to negligence of
proper safety features. Survivors stillproper safety features. Survivors still
suffer from various diseases andsuffer from various diseases and
battling for life and waiting for theirbattling for life and waiting for their
turn to get compensated.turn to get compensated.

 Major Accident in last decade (India)-:Major Accident in last decade (India)-:
1) Bhopal gas leak in December 1984.1) Bhopal gas leak in December 1984.
2) Delhi gas leak from Sriram foods and2) Delhi gas leak from Sriram foods and
fertilizers in December 1985.fertilizers in December 1985.
3) Gwalior blast at a dyeing department3) Gwalior blast at a dyeing department
of GRASIM in December 1991.of GRASIM in December 1991.
4) Khalgaon boiler explosion in NTPC in4) Khalgaon boiler explosion in NTPC in
October 1992.October 1992.
5) Mumbai ONGC’s helicopter crash in the5) Mumbai ONGC’s helicopter crash in the
offshore Heera Panna oilfield’s Neelamoffshore Heera Panna oilfield’s Neelam
area in August 2003.area in August 2003.

 Major International accident-:Major International accident-:
1) NASA – Columbia space shuttle broke1) NASA – Columbia space shuttle broke
apart during reentry on Feb 1, 2003.apart during reentry on Feb 1, 2003.
Wing damage sustained during launch byWing damage sustained during launch by
a chunk of fuel tank insulation was citeda chunk of fuel tank insulation was cited
as the accident cause.as the accident cause.

 Safety -: refers to the absence ofSafety -: refers to the absence of
accidents. Stated differently, safetyaccidents. Stated differently, safety
refers to the protection of workersrefers to the protection of workers
from the danger of accidents.from the danger of accidents.
 Research says “ Every twenty secondsResearch says “ Every twenty seconds
of working minute of every hourof working minute of every hour
throughout the World, someone dies asthroughout the World, someone dies as
a result of an industrial accident”.a result of an industrial accident”.

 Types of accidents -:Types of accidents -:
AccidentsAccidents
Internal ExternalInternal External
Major MinorMajor Minor
Fatal DisabilityFatal Disability

DisabilityDisability
Temporary PermanentTemporary Permanent
Partial Total Partial TotalPartial Total Partial Total

 Internal – If a bone is fracture whichInternal – If a bone is fracture which
cant be seen and judged from opencant be seen and judged from open
eyes.eyes.
 External – wounds which are seenExternal – wounds which are seen
through our open eyes.through our open eyes.
 Major – Accidents results in death orMajor – Accidents results in death or
results in prolonged injury.results in prolonged injury.
 Minor – A scratch or injury does notMinor – A scratch or injury does not
seriously disable.seriously disable.
 Temporary – If a person recoversTemporary – If a person recovers
disability from which he can recoverdisability from which he can recover
fully after certain period.

 Permanent – Any injury whichPermanent – Any injury which
permanently disabled the person.permanently disabled the person.

 Need for safety -:Need for safety -:
1)1) Cost saving – Direct cost ieCost saving – Direct cost ie
compensation and Indirect cost ie losscompensation and Indirect cost ie loss
of production, damages of equipment,of production, damages of equipment,
wastage of time.wastage of time.
2)2) Increased productivity – SafetyIncreased productivity – Safety
promotes productivity, employees feelpromotes productivity, employees feel
safe and produce good quality andsafe and produce good quality and
quantity.quantity.

3) Moral – Providing safety to the3) Moral – Providing safety to the
employee has moral dimension, inemployee has moral dimension, in
addition to being a legal requirement. Anaddition to being a legal requirement. An
employer has no right to cause accidentemployer has no right to cause accident
to an employee which might kill theto an employee which might kill the
person. Monetary compensation does notperson. Monetary compensation does not
bring the person back as a healthybring the person back as a healthy
individual.individual.
Can monetary compensation be aCan monetary compensation be a
substitute for person?substitute for person?

4) Legal – Supreme court says “ An4) Legal – Supreme court says “ An
enterprise which is engaged in aenterprise which is engaged in a
hazardous dangerously industry whichhazardous dangerously industry which
poses a potential threat to the healthposes a potential threat to the health
and safety of the persons working inand safety of the persons working in
the factory or industry must ensurethe factory or industry must ensure
that neither the workers nor thethat neither the workers nor the
society suffers any kind of damages” .society suffers any kind of damages” .
All safety related requirements to beAll safety related requirements to be
fulfilled by the industry as legalfulfilled by the industry as legal
requirement before start of work.requirement before start of work.

 Safety Program -:Safety Program -:
Safety program deals with the prevention ofSafety program deals with the prevention of
accidents and with minimising the resultingaccidents and with minimising the resulting
loss and damage to person and property.loss and damage to person and property.
Five principles that govern the safetyFive principles that govern the safety
program of an organisation are -:program of an organisation are -:
1) Industrial accidents are a the result of1) Industrial accidents are a the result of
multiple factors. So these factors have to bemultiple factors. So these factors have to be
traced to their root causes, which are usuallytraced to their root causes, which are usually
falls in the management system arising fromfalls in the management system arising from
poor leadership from top, inadequatepoor leadership from top, inadequate
supervision, no attention to design safetysupervision, no attention to design safety
system.system.

2) The most important function of safety2) The most important function of safety
programmes is to identify potential hazards,programmes is to identify potential hazards,
provide effective remedial actions.provide effective remedial actions.
This is possible only if there are -:This is possible only if there are -:
a)a) Effective system for reporting all accidentsEffective system for reporting all accidents
causing damage or injury.causing damage or injury.
b)b) Adequate accidents records.Adequate accidents records.
c)c) Systematic procedures for carrying outSystematic procedures for carrying out
safety checks, inspections.safety checks, inspections.
d)d) Methods of ensuring that safety equipmentMethods of ensuring that safety equipment
is maintained.is maintained.

3) Safety policy of the organisation should be3) Safety policy of the organisation should be
determined by the top management and itdetermined by the top management and it
must continuously involved in monitoringmust continuously involved in monitoring
safety performance.safety performance.
4) The management and supervision must be4) The management and supervision must be
made fully accountable for safetymade fully accountable for safety
performance in the working areas theyperformance in the working areas they
control.control.
5) All employees should be given thorough5) All employees should be given thorough
training in safe methods of work and theytraining in safe methods of work and they
should get regular guidance on eleminatingshould get regular guidance on eleminating
safety hazards.safety hazards.

 Safety Process -:Safety Process -:
Strategic choicesStrategic choices
development of safety policydevelopment of safety policy
Organisation for safetyOrganisation for safety
Analysis of causes of accidentsAnalysis of causes of accidents
Implementation of programImplementation of program
Evaluation of effectivenessEvaluation of effectiveness

 Strategic choices – Management must makeStrategic choices – Management must make
decision regarding safety of their workers.decision regarding safety of their workers.
Some strategic choices are-:Some strategic choices are-:
1)1) Must determine the level of protection.Must determine the level of protection.
Some co because of financial constraintsSome co because of financial constraints
prefer low level.prefer low level.
2)2) Must decide whether a safety program willMust decide whether a safety program will
be formal or informal. Formal have writtenbe formal or informal. Formal have written
regulation & carefully monitored. Informalregulation & carefully monitored. Informal
are enforced because of pressure andare enforced because of pressure and
include good training.include good training.

3) Management can be proactive or3) Management can be proactive or
reactive.reactive.
4) Management can use safety of workers4) Management can use safety of workers
as a marketing tool of the organisation.as a marketing tool of the organisation.

 Health - : The well being of the employees inHealth - : The well being of the employees in
an industrial establishment is affected byan industrial establishment is affected by
accidents and by ill health – physical as wellaccidents and by ill health – physical as well
as mental.as mental.
 Health in Industry can be discussed throughHealth in Industry can be discussed through
following angles-:following angles-:
1)1) Physical healthPhysical health
2)2) Mental healthMental health
3)3) Noise controlNoise control
4)4) Stress managementStress management
5)5) Violence at work placeViolence at work place

 Health hazards -:Health hazards -:
Health hazards CausesHealth hazards Causes
Lung cancer oven emissions, smokesLung cancer oven emissions, smokes
Leukemia RadiationLeukemia Radiation
Reproductive problems RadiationReproductive problems Radiation
Vision Chemical fumes, Office equip.Vision Chemical fumes, Office equip.
Hearing High noise levelHearing High noise level

 Mental health -: Specially at executiveMental health -: Specially at executive
cadre. Three reasons for thiscadre. Three reasons for this
development are mental breakdownsdevelopment are mental breakdowns
because of pressure & tensions. Mentalbecause of pressure & tensions. Mental
disturbances because of reduceddisturbances because of reduced
productivity & lower profits. Mentalproductivity & lower profits. Mental
illness alcoholism & poor humanillness alcoholism & poor human
relations.relations.

 Noise Control -: Noise can only beNoise Control -: Noise can only be
minimised but can not be totallyminimised but can not be totally
eliminated. Constant exposure to noiseeliminated. Constant exposure to noise
not only effects hearing ability but alsonot only effects hearing ability but also
effect the general health of theeffect the general health of the

 Work stress -: refers to an individualsWork stress -: refers to an individuals
response to a disturbing factor in theresponse to a disturbing factor in the
environment . Stress is mostlyenvironment . Stress is mostly
understood to be negative, but it hasunderstood to be negative, but it has
positive dimension also. When stresspositive dimension also. When stress
brings out something better from anbrings out something better from an
individual, it is called eustress.individual, it is called eustress.
 Violence at work place -:Violence at work place -:

Lecture2 2 15586-lecture2_hrm intro

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Lecture2 2 15586-lecture2_hrm intro

Similar to Lecture2 2 15586-lecture2_hrm intro (20)

Recently uploaded

Recently uploaded (20)

Lecture2 2 15586-lecture2_hrm intro