Hrm intro 2007 ppt


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Hrm intro 2007 ppt

  2. 2. HRM Management of work force of an organisation ie how to manage the different people working together in a organisation. HRM is a management function that helps managers recruit, train and develop members for an organisation.
  3. 3. HRM HRM is concerned with the people dimension in management. Since every organisation is made up of people, acquiring their services, developing their skills, motivating them to higher level of performance, and ensuring that they continue to maintain their commitment to the organisation are essential to achieving organisational objectives. This is true, regardless of the type of organisation ie government, business, education, health.
  4. 4. Objectives of HRM Societal objectives – To be socially responsible to the needs of the society. Organisational Objective – To recognise the role of HRM in bringing about organisational effectiveness. Functional objective – To maintain department’s contribution at a level appropriate to the organisation’s needs. Personal Objective – To assist employees in achieving their personal goals, at least in so far as these goals enhance the individual’s contribution to the organisation.
  5. 5. Objective of HRM HRM Obj. Supporting function 1. Legal compliance Societal Objective 2. Benefits 3. Union Management relations 1. HRP 2. Employee relations Organisational 3. Selection Objectives 4. Training & Development 5. Appraisal 6. Placement
  6. 6. Objectives of HRM HRM Obj. Supporting function 1. Placement Functional objectives 2. Assessment 1.Training & Development Personal Objectives 2. Compensation
  7. 7. Competitive challenges and HR1. Going global2. Embracing new technology3. Managing change and organisation culture4. Responding to the market5. Containing costs  Downsizing  Outsourcing and employee leasing  Enhancing productivity
  8. 8. Other challenges faced Demographic and Employee concerns  Demographic changes  Diversity of backgrounds  Age distributions  Gender distribution  Rising level of education Cultural changes  Concern for employee rights  Changing attitude towards work  Balancing work and family
  9. 9. Functions of HRMANAGERIAL OPERATIVEFUNCTIONS FUNCTIONS Planning Staffing Development Organising Compensation Directing Motivation Controlling Maintenance Integration
  10. 10. Operative functions of HRSTAFFING Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility Competency profiling, Training andDEVELOPMENT development, Performance & potential management, Career management, 360 degree feedback Job design, Work scheduling, JobCOMPENSATION evaluation, Compensation& MOTIVATION administration, Incentives and benefits
  11. 11. Operative functions of HR (contd.) Health, Safety, WelfareMAINTENANCE Employment relations, Grievance,INTEGRATION Discipline, Trade unions, Participation
  12. 12. Scope of HRM Labour or Personnel aspect – Recruitment, Selection, Transfer, Promotion etc. Welfare aspect – Housing, Lunch room, Health and Safety, Transport, education etc. Industrial relation aspect – Union Management relations, Negotiation, Grievance handling etc.
  13. 13. HRM Environment - External Technology Professionalism Economic HRM Social & cultural Political & legal Union
  14. 14. HRM Environment - Internal Policies HRM Organisational Mission Conflict
  15. 15. HRM Policies Policy– is predetermined course of action established to guide the performance of work towards accepted objectives. Importance -:(1) Clear Thinking(2)Uniformity & Consistency of Admin.(3)Sence of Security(4)Control
  16. 16. Types of HR Policies Originated policies – Made by top Management. Appealed policies – Made on request to handle certain situation, or if certain aspects are missing in the main policy. Imposed policies – Imposed by Govt & Legal authorities. General policies – Do not relate any issue, may represent the priority of Top Mgmt. (WPM). Specific Policy – Related to specific issues like Recruitment, Transfer, Promotion etc.
  17. 17. Strategic Management Strategy -: is a way of doing something. It usually includes the formulation of a goal and set of action plans for accomplishment of that goal. Strategy has two components -:1) Planning2) Action
  18. 18. Strategic Management Strategic management is understood as the process of formulating, implementing and evaluating business strategies to achieve organisational objectives. Analysis of the environment, formulation of strategies, and evaluation and control are the phases in the strategic management process.
  19. 19. Human Resource Planning Meaning – Assessment of Human Resource Requirements & also the time & stages of requirement. Right person ---At Right place ---At Right time. Definition – HRP is defined as the process by which management determines how an org should move from its current manpower position to its desired manpower position.
  20. 20. Objectives of HRP To ensure optimum use of existing HR. To forecast future requirement for HR. To provide control measures to ensure that necessary HR are available as and when required. To asses the surplus and shortage of HR. (Downsizing). To anticipate the impact of technology on jobs and HR.
  21. 21. Objectives of HRP – Contd. To determine the level of Recruitment and Training. To estimate the cost of HR and Housing needs of employees. (Or HRA). To provide the basis of MDP. To meet the needs of expansion and diversification programmes.
  22. 22. Importance of HRP Future Personnel needs Creating highly talented personnel International Strategies Foundation of personnel function Resistance to change and move
  23. 23. Factors Affecting HRP Organisational growth cycle & planning Environmental Outsourcing HRP Uncertainties Strategy of Organisation
  24. 24. Factors Affecting HRP Organisation growth cycle and planning-: HRP is Critical when organisation enters the growth stage. Mature organisations experiences less flexibility and variability, growth slows down. HRP is dominated by Layoffs, Retrenchment, Retirements.
  25. 25. Factors Affecting HRP Environmental Uncertainties -: When Political, Social and other changes affect the organisation, HR planners deal with uncertainties. It can result in Recruitment, Training, Succession Planning, Retrenchment etc.
  26. 26. Factors Affecting HRP Strategy of Organisation -: Strategic plan of the organisation defines the organisation’s HR needs. Internal Growth Growth through Mergers Narrow Broad Informal Formal Reactive Proactive Inflexible Flexible
  27. 27. Factors Affecting HRP Outsourcing -: Most organisations have surplus labour and they do not want to worsen the problem by hiring more people. Outsourcing is the option left.
  28. 28. HRP Process Environment Org objectives & policiesHR Need Forecast HR Supply Forecast HR Programming HRP Implementation Control & Evaluation Surplus Shortage
  29. 29. HRP Process (Contd.) Environmental Scanning - :1) Economic factors2) Technological Changes3) Demographic changes4) Political and legislative issues5) Social concerns
  30. 30. HRP Process (Contd.) Org objectives and policies-: HRplans need to be based on org objectives, this implies that the objectives of the HR plan must be derived from Org objectives.
  31. 31. HRP Process (Contd.) HR Demand forecast-: The process of estimating the future quantity and quality of people required. The basis of forecast will be annual budget and long term corporate plans. Demand forecasting must consider several factors like internal (Budget constraints, employee separations, production level) and external (Competition, laws, change in technology).
  32. 32. HRP Process (Contd.) Demand forecasting techniques are-: Managerial judgment Ratio trend analysis Delphi technique Regression analysis HR Supply forecasting-: Supply forecasting measures the number of people likely to be available from within and outside an org.
  33. 33. HRP Process (contd.) HR Programming-: Once the Org’s HR Demand and Supply are forecast, the two must be reconciled or balanced in order that vacancies can be filled by the right employee at the right time. HR Plan Implementation-: Implementation requires converting an HR plans into action. (Recruitment, Training, Succession plan etc.)
  34. 34. HRP Process (contd.) Control and Evaluation -: Critical to have proper control and regular checks to know the achievements of HRP. Surplus Shortage Restricted hiring R&S VRS, Lay off
  35. 35. HRIS HRIS is a database system that keeps important information about employees in a central and accessible location. The information provided by HRIS can help the organisation to gain competitive advantage. (SWOT of org.)
  36. 36. Information categories of HRIS Basic non confidential information-: Employee name, Org name, Work location General non confidential information -: Social security number, Position related information (codes, tittles, effective date)
  37. 37. Info categories of HRIS (contd.) General information with salary -: Current salary, Effective date, Amount of last change, Reason for last change. Confidential information with salary -: Information of previous category, Educational data
  38. 38. Info categories of HRIS (contd.) Extended information with salary -: Information of previous category, Bonus information, Projected salary increase information, Performance evaluation information.
  39. 39. Job Analysis Job analysis is the process of collecting job related information. Such information helps in the preparation of job description and job specification. Job Analysis Job Description Job Specification
  40. 40. Job Analysis (contd.) Job description -: A statement containing items such as Job title, Location, Job summary, Working condition etc. Job specification -: A Statement of human qualifications necessary to do the job. Usually contains items such as Education, Experience, Training, Communication skills etc.
  41. 41. Purposes of Job Analysis HRP Recruitment & Selection Training & Development Remuneration Safety & Health Performance Appraisal
  42. 42. Methods of Collecting Job Data Observation Interviews Questionnaire Technical Conference Method
  43. 43. Process of Job Analysis Strategic Choices Gather Information Process Information Job Description Job Specification
  44. 44. Process (contd.) Strategic Choices –:1. Employee Involvement2. Level of Details3. When and How often4. Past oriented and Future oriented Gather Information –:1. What type of Data to Collected (machine, tools & work activities)2. Data collection methods3. Who to collect Data (Trained analyst, Supervisors, Job incumbents)
  45. 45. Process (contd.) Information Processing -: How collected information will be used in forming Job Description and Job Specification. Job description –: Job Specification -:
  46. 46. Problems with Job Analysis Support from Top management Single Means or Source No Training or Motivation Activities may be Distorted
  47. 47. Job Design Job Design is defines as -: It integrates work content (tasks, function), the rewards & the qualifications required (skills, knowledge) for each job in a way that meets the need of the employees and the organisation.
  48. 48. Job Design Job Design involves three steps -:1) Specification of individual tasks.2) Specification of the methods of performing each tasks.3) Combination of tasks into specific jobs to be assigned to individuals.
  49. 49. Methods of Job DesignJob Design Methods -: Job Rotation Job Job Job Simplification Design Enlargement Job Enrichment
  50. 50. Recruitment The process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. Recruitment is a process of inviting applications from prospective employees. Recruitment is a positive process.
  51. 51. Purpose & Importance of Recruitment Determine the present and future requirements of the organisation in relation with the HRP and Job Analysis. Increase the pool of job candidates at minimum cost. Meet the organisation’s legal and social obligations regarding the composition of its workforce.
  52. 52. Sources of Recruitment Internal Sources -: Transfer , Promotions. External Sources-: Press Advertisements , Educational Institutions, Placement Agencies, Employment Exchange, Labour Contractors, Recruitment at factory Gate.
  53. 53. Recruitment Process Recruiting Required PersonnelSearch for Perspective Employees Internal Sources External SourcesEvaluating effectiveness of process
  54. 54. Recruitment Process Personnel Requisition -: Requisition for recruitment from other deptt., Contains info like no of person required, duties to be performed, desired qualification, time of appointment, info about job. Locating and developing sources of required no and type of employees. Identifying the prospective employees with required characteristics.
  55. 55. Process (contd.) Communicating the info about the org, the job and the terms and condition of service. Encouraging the identified candidates to apply for jobs in the org. Evaluating the effectiveness of recruitment process.
  56. 56. Alternatives to Recruitment Overtime Employee Leasing Temporary Employment
  57. 57. Selection Selection is the process of picking individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organisation. Selection is a negetive process.
  58. 58. Selection Procedure Preliminary Interview Application blank Selection Test Employment Interview Reference Check and Background Analysis Medical Examination Final Approval Evaluation
  59. 59. Test and Interview Psychological tests -: Aptitude test Informal Interview Formal Interview Depth Interview Stress Interview
  60. 60. Induction Or Orientation Plannedintroduction of employees to their jobs, their co – workers and the organisation. Orientationalso called Induction, is designed to provide a new employee with the information he or she needs to function comfortably and effectively in the organisation.
  61. 61. Objectives of Induction To help new comer overcome his natural shyness and nervousness in meeting new people in the environment. To develop among the newcomers a sense of belonging and loyalty to the organisation. To develop a close and cordial relationship between newcomers and the old employees and their supervisor.
  62. 62. Objectives (contd.) To ensure that the newcomers do not form negative or false impression and attitude towards the organisation or the job because first impression is the last impression. To give newcomers necessary information such as leave rules, rest period, locker room etc.
  63. 63. Advantages of Formal Induction Helps in build up a two way channel of communication between management and workers. Proper induction facilitates informal relations and teamwork among employees. Effective induction helps to integrate the new employees into the organisation and to develop the sense of belonging.
  64. 64. Types of Induction Programme Formal Informal Individual collective
  65. 65. Contents of Induction Programme History and operation of company Products and services of company Policies and procedures of company Grievance procedure Benefit and services for employees Opportunities for training and development, promotion, transfer etc.
  66. 66. Placement Placement refers to the allocation of people to jobs. It includes initial assignment of new employees and promotion, transfer, or demotion of present employees.
  67. 67. Placement Problems Difficulty with the placement is that we tend to look at the individual but not at the job. Job in this context may be classified into three categories.1. Independent2. Sequential3. Pooled
  68. 68. Training & Development Training is an attempt to improve current or future employee performance by increasing an employees ability to perform through learning, usually by changing the employee’s attitude or increasing his or her skills and knowledge. Training refers to the process of imparting specific skills. (Employees)
  69. 69. T&D Development refers to learning opportunities designed to help employees grow. (Executive) Education is theoretical learning in classroom.
  70. 70. T&D The need for training and development is determined by the employee’s performance deficiency computed as follows-:Training & Development need = Standard Performance – Actual Performance
  71. 71. Difference between T & Edu Training -:1. Application base,2.Job Experience,3. Specific Task,4. Narrow Perspective. Education -:1.Theoretical Orientation,2. Classroom learning,3. General Concepts,4. Broad Perspective.
  72. 72. Inputs in T & D Skills Education Development Ethics AttitudinalChanges Decision making and Problem solving skills
  73. 73. T & D as a source of Competitive AdvantageT & D offer competitive advantage to a firm by removing performance deficiencies, making staff stay long, minimising accidents, Scrap & damage and meeting future employees needs.
  74. 74. Training Program Need Assessment Deriving Instructional ObjectivesDesigning Training & Development Program Implementation of Training Program Evaluation
  75. 75. Training Process Need Assessment -: Diagnoses the present problems & future challenges to be met through training and development. Need Assessment Methods -: As follows Group Assessment – (intro of new product.)1. Org goals & objectives.2. Personnel skill inventories3. Exit interviews4. Customers Satisfaction data
  76. 76. Training Process Needs Assessment & Remedial measures Performance Deficiency Lack of Skill & Other Causes Knowledge Non – Training Training Measures
  77. 77. Training process Individual Analysis -:1. Performance Appraisal2. Interviews3. Questionnaires4. Attitude Surveys. Issues in need assessment -:1. Org Support2. Org Analysis3. Task and KSA analysis4. Person Analysis
  78. 78. Training Process Deriving an instructional objectives -: It help to know the inputs for the training program and as well as for the measures of success that would help assess effectiveness of the training program. Designing training & development program -:1. Who are the trainees?2. Who are the trainers?3. Methods & techniques?4. Level of training?5. Learning principles?6. Where to conduct the program?
  79. 79. Training process Implementation of training program Evaluation
  80. 80. Types of training On the job -:1. Orientation Training ie Induction2. Job instruction – Info about how to conduct the job.3. Apprentice training - ITI4. Internship / Assistantship - Doctors5. Job rotation - Bank6. Coaching – Cricket team
  81. 81. Types of training Off the job -:1. Vestibule – Utilisation of actual equipments.2. Lecture – Verbal presentation of information.3. Role playing – is to create realistic situation.4. Simulation – technique that duplicates as nearly as possible actual condition encountered on the job.5. Laboratory / Sensitivity training – smaller group ie 12 or less. Provides awareness about their own behaviour & how other percieve them.
  82. 82. Performance Appraisal Itis the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.
  83. 83. Objectives of Performance Appraisal Promotions based on competence and performance. Toconfirm the services of probationary employees upon their completing the probationary period satisfactorily. Toasses the training and development needs of employees.
  84. 84. Objective of Performance Appraisal To decide upon pay rise where regular pay scales have not been fixed. Finally, performance Appraisal can be used to determine whether HR programmes such as selection, training and transfers have been effective or not.
  85. 85. Relationship of PA and Job Analysis Job Analysis – Describe work and Personnel requirement of a particular job. Performance Standards – Translate job requirements into levels of acceptable or unacceptable performance. Performance Appraisal – Describes the job relevant strengths and weaknesses of each individual.
  86. 86. PA and Competitive Advantage Improving Performance Making Correct decisions Minimizing job dissatisfaction and turn over Consistency between organizational strategy
  87. 87. Performance Appraisal process Objective of Performance Appraisal Establish Job expectations Design an Appraisal Programme Appraise Performance Performance InterviewUse Appraisal Data for Appropriate Purposes
  88. 88. P A Process Objective – Correct or Improve performance Expectation – In forming what is expected from employee Design Appraisal – Helps in posing question which needs answers like Formal v/s Informal Appraisal, whose performance should be rated (group, team, individual), Who are Raters, What should be rated (Quality, Quantity, Time, Cost effectiveness, Need For Supervision), When to Evaluate, What Methods to be opted.
  89. 89. P A Process Appraise the Performance – Quantity, Quality and time of Output. Performance Interview Use the Appraisal Data – HRP, Promotion, Remuneration, Training and Development etc.
  90. 90. Performance Appraisal Methods 90 Degree – Only Supervisor is Evaluator. 180 Degree – Superior and Peer Group 270 degree – Superior, Peer and Subordinates 360 Degree – Superior, Peer, Subordinates, Clients and Self 540 Degree - Superior, Peer, Subordinates, Clients and Self 720 Degree - Superior, Peer, Subordinates, Clients, Self and Family
  91. 91. Performance Appraisal Methods Past Oriented Methods - : Rating Scales – Excellent-Good-Acceptable- Fair-Poor (Simplest & most popular) Checklist – Yes / No (Is employee interested in job? Does have adequate qualification?) Forced Choice Method – Two Choices and no other option (The rater is forced to select statements which are readymade) Learns fast ----- Work hard. Critical Incident Method – this approach focuses on certain critical behaviours of an employee
  92. 92. Performance Appraisal Methods Behaviourally Anchored Rating Scales – On the basis of the behavioural criteria of the employee rating is being done by the superior. Field Review Method – Some one outside the assessee’s own department, usually from corporate office or HR department.
  93. 93. Future Oriented Methods 360 Degree Appraisal Assessment Centers (Potential Appraisal) Psychological Counseling
  94. 94. Problems in Performance Appraisal Leniency or Severity Central Tendency Halo Error Rater Effect – Rating based on raters attitude towards ratee Primacy or Recency effects Perceptual Set – Raters perception
  95. 95. Job Evaluation Job evaluation seeks to determine the relative worth of each job so that salary differentials can be established. Injob evaluation only jobs are rated unlike in performance appraisal where only job holders are rated.
  96. 96. Job Evaluation Process Objectives of Job Evaluation Job AnalysisJob Description Job Specification Job Evaluation Programme Wage Survey Employee Classification
  97. 97. Methods of Job Evaluation Non Analytical Methods Analytical Methods
  98. 98. Non Analytical method RankingMethod – The evaluation committee assesses the worth of each job on the basis of its title or on its contents, if the later is available. JobGrading Method – There is a yardstick in the form of job classes or grades.
  99. 99. Compensation Remuneration is the compensation an employee receives in return for his or her contribution to the organisation. Society – Some people see pay as a measure of justice. Stockholders – To stockholders, executive pay is of special interest, as linking executive pay to company performance is supposed to increase stockholders wealth.
  100. 100. Compensation Managers – Compensation influences their success in two ways. First, it is a major expense. In addition to treating it as an expense, a manager also uses it to influence employee behaviour and improve organisation performance. Employees – The pay individuals receive in return for the work they perform is usually the major source of their financial security.
  101. 101. Components of Compensation Financial – :1. Hourly and monthly rated wage and salary.2. Incentives ie individual plans and group plans.3. Fringe benefits ie PF , Gratuity, Medical care, Group Insurance.4. Perquisites are Company car, furnished house (Offered to retain competent executives)
  102. 102. Components of Compensation NonFinancial -: Recognition, Growth Prospects.
  103. 103. Factors Influencing Employee Remuneration External -:1. Labour Market – Demand & Supply, Going Rate2. Cost of Living – Escalatory clause3. Labour Unions4. Labour Laws – Payment of wages act1936, Minimum wages act 1948, Payment of Bonus act 1965, Equal remuneration act 1976, Payment of gratuity act 1972.5. Society
  104. 104. Factors Influences Employee Remuneration Internal -:1. Business Strategy – Rapid growth = High Pay2. Job Evaluation and Performance Appraisal3. Employee – Performance , Experience, Seniority
  105. 105. Devising a Remuneration Plan Job Description Job Evaluation Job Hierarchy Pay Survey Pricing jobs
  106. 106. Challenges of Remuneration Salary reviews Pay secrecy Skill based pay Employee Participation Above Market or Below Market Rates Monetary V/S Non Monetary Rewards Comparable Worth
  107. 107. Concept of Wages Minimum Wage – Wage for sustenance of life plus for preservation of the efficiency of worker. (Determined through Legislation) Fair Wage – Equal to the rate prevailing in the same trade and in the neighborhood or equal to the predominant rate for similar work throughout the country. Living Wage – Higher than fair wage. Provides for bare essentials plus frugal comforts.
  108. 108. Incentives Incentives are variable rewards granted to employees according to variations in their performance. The other name for incentives is “Payments by results”. But the word ‘Incentives’ is most appropriate because of its motivational content.
  109. 109. Importance of Incentives Motivation of worker for higher efficiency and greater output. Earning of employees would be enhanced due to incentives. Increased earning helps employee to improve standard of living. Other advantages – Reduced Supervision, better utilisation of equipments, reduced lost time, reduced absenteeism and turnover and increased output.
  110. 110. Disadvantages of Incentives Deteriorate the quality of product as employee want to earn more by producing more quantity of products. When job is restudied there are chances that it may yield in lower earning in terms of earning incentives as new and high challenging jobs offers more scope for earning as compared to old jobs. Increases jealousy among the workers as the person earning less is jealous of the person earning more.
  111. 111. Employee benefits Employee benefits and services include any benefits that the employee receives in addition to direct remuneration. Employee benefits and services are alternatively known as fringes or hidden payroll.
  112. 112. Types of employee benefits For fringe benefits three criteria’s are needed to be fulfilled.1) It should be computable in terms of money.2) The amount of benefit is not generally predetermined.3) No contract, indicating when the sum is payable, should exists.
  113. 113. Fringe benefits Legally required payments -: Old age, survivors, disability and health insurance. Contingent benefits -: pension plans, group life insurance, group health insurance, maternity leave, sick leave, service awards. Other benefits -: payments for the time not worked like holidays, leaves.
  114. 114. Benefits and services Treats -: free lunches, festival bashes, dinner for the family. Awards -: trophies, certificates, letter of appreciation. Office environment -: flexible hours. Tokens -: movie tickets, vacation trips. On the job -: job rotation, representing the company at public meetings.
  115. 115. Administration of fringe benefits Establish benefits objectives Assess environmental factors Access competitiveness Communicate benefit information Control benefit cost and evaluation
  116. 116. Executive remuneration Components of remuneration -:1) Salary2) Bonus3) Commission4) Long term incentives5) Perks
  117. 117. Industrial Relations IRis concerned with the system , rules and procedures used by unions and employers to determine the reward for effort and their conditions of employment, to protect the interest of the employed and their employers, and to regulate the ways in which employers treat their employees.
  118. 118. IR cont’d IR is concerned with the relationship between management and workers and the role of regulatory mechanism in resolving any industrial dispute. IR specially covers the following areas-:1) Collective bargaining2) Role of management , unions and govt.3) Machinery for resolution of industrial dispute4) Individual grievance and disciplinary policy and practice
  119. 119. Approaches to IR Unitary Approach – Direct negotiation with employee and participation of Govt. Tribunals, and unions are not sought. Pluralistic Approach – (a) org as coalitions of competing interest, where the management’s role is to mediate amongst the different interest group.(b) TU are legitimate representatives of employee interest.(c) Stability in IR is a product of concession and compromises between management and unions.
  120. 120. Approaches to IR Marxist Approach – same as Pluralistic but feels conflict arises not because of rift between management and workers, but because of the division in the society between those who own resources and who have only labour to offer.
  121. 121. Parties to IR Employees EmployeeAssociations Government Employer – Employee – Relations Employers Employer Associations Courts and Tribunals
  122. 122. Trade Unions TUare voluntary organisations of employees or employers formed to promote and protect their interest through collective action. Though the terms employees and employers are used, when we say trade unions they generally refer to employees.
  123. 123. Why do employees join unions? Dissatisfaction Lack of power Union Instrumentality
  124. 124. Union Tactics Unions employ several tactics to deal with management are-:1) Strike2) Invoking political patronage3) Blackmailing4) Unionising
  125. 125. Strategic choices before Management Mgmt must decide whether the org should remain union free or allow unionisation. If mgmt decide company should remain union free then they must take steps to keep union away from the org. If unionisation should be allowed, managers must decide what type of union mgmt relations they want. Mgmt must also choose the type of tactic to use while negotiating a new wage settlement.
  126. 126. Strategic choices before Unions Bread and Butter V/S Political objective Adversarial V/S Co operative role Traditional issues V/S New services
  127. 127. Strategies and Tactics for remaining Union - Free Effective supervision Open communication Effective personnel search Healthy and Safe working environment Effective Employer and Employee relations Effective remmuneration
  128. 128. Some of the major Trade Unions INTUC – Indian National Trade Union Congress CITU – Centre of Indian Trade Unions HMS – Hind Mazdoor Sabha AITUC – All India Trade Union Congress BMS – Bhartiya Mazdoor Sangh UTUC – United Trade Union Congress
  129. 129. Disputes and Their Resolution Acc to Industrial Dispute Act, 1947, industrial dispute mean any dispute or difference between employers and employers or between employers and workmen, workmen and workmen, which is connected with the employment or non employment or terms of employment.
  130. 130. Causes of Disputes Wage Demands Union Rivalry (Singareni Collieries - 445 TU – loss 3.12 million tones) Political Interference (ideology differs, union works on party lines, CITU- Communist love to fight but hate to win so they have not signed any settlement in last 15 years)
  131. 131. Causes of Disputes Unfair Labour Practice - :a) Management unwillingness to recognise a particular TU and dilatory tactics.b) Negotiation of settlement of dispute the representatives of employers take the side of management which results in disputes. Multiplicity of Labour Laws
  132. 132. Settlement of Disputes Collective Bargaining (reps of employees & employers meet to solve the issue) Collective Bargaining Process-:a) Preparing for negotiationb) Identifying bargaining issuesc) Negotiationsd) Reaching the agreemente) Ratifying the agreementf) Administration of agreement
  133. 133. Settlement Cont’d. CollectiveBargaining takes place when representatives of trade union meet management representatives to determine employee wages and benefits and to solve other issues. Collective Bargaining is the most effective method of resolving industrial disputes.
  134. 134. Settlement of Disputes Grievance Procedure Arbitration Conciliation Adjudication Consultative Machinery
  135. 135. Settlement Cont’d. Grievance Procedure -: Stage One (Sectional Head) 5 days Stage two (Deptt Head) 5 days Stage Three (Divisional Head) 10 days Fourth Stage (Union)
  136. 136. Settlement Cont’d Arbitrations refers to the procedure in which a neutral third party studies the dispute, listen to both the parties and collects the information , and make recommendations which are binding on both the parties. Conciliation-: As per the Industrial Dispute act 1947, Sec 4, says that the govt shall appoint conciliation officers and their main duty is to mediate and promote settlement of Industrial Dispute.
  137. 137. Settlement Cont’d Adjudication a mandatory settlement of Industrial Dispute by a labour court or Tribunal. Consultative Machinery
  138. 138. Safety and Health There is a saying“ Precaution is always better than cure”.
  139. 139. Safety and Health Bhopal Gas Tragedy23 years ago, there was a gas leak froma Union Carbide plant which led to killingover 20000 thousands of people inBhopal and become the worst industrialaccident in India due to negligence ofproper safety features. Survivors stillsuffer from various diseases andbattling for life and waiting for theirturn to get compensated.
  140. 140. Safety and Health Major Accident in last decade (India)-:1) Bhopal gas leak in December 1984.2) Delhi gas leak from Sriram foods and fertilizers in December 1985.3) Gwalior blast at a dyeing department of GRASIM in December 1991.4) Khalgaon boiler explosion in NTPC in October 1992.5) Mumbai ONGC’s helicopter crash in the offshore Heera Panna oilfield’s Neelam area in August 2003.
  141. 141. Safety and Health Major International accident-:1) NASA – Columbia space shuttle broke apart during reentry on Feb 1, 2003. Wing damage sustained during launch by a chunk of fuel tank insulation was cited as the accident cause.
  142. 142. Safety and Health Safety-: refers to the absence of accidents. Stated differently, safety refers to the protection of workers from the danger of accidents. Research says “ Every twenty seconds of working minute of every hour throughout the World, someone dies as a result of an industrial accident”.
  143. 143. Safety and Health Types of accidents -: Accidents Internal External Major Minor Fatal Disability
  144. 144. Safety and Health DisabilityTemporary PermanentPartial Total Partial Total
  145. 145. Safety and Health Internal – If a bone is fracture which cant be seen and judged from open eyes. External – wounds which are seen through our open eyes. Major – Accidents results in death or results in prolonged injury. Minor – A scratch or injury does not seriously disable. Temporary – If a person recovers disability from which he can recover fully after certain period.
  146. 146. Safety and Health Permanent– Any injury which permanently disabled the person.
  147. 147. Safety and Health Need for safety -:1) Cost saving – Direct cost ie compensation and Indirect cost ie loss of production, damages of equipment, wastage of time.2) Increased productivity – Safety promotes productivity, employees feel safe and produce good quality and quantity.
  148. 148. Safety and Health3) Moral – Providing safety to the employee has moral dimension, in addition to being a legal requirement. An employer has no right to cause accident to an employee which might kill the person. Monetary compensation does not bring the person back as a healthy individual. Can monetary compensation be a substitute for person?
  149. 149. Safety and Health4) Legal – Supreme court says “ An enterprise which is engaged in a hazardous dangerously industry which poses a potential threat to the health and safety of the persons working in the factory or industry must ensure that neither the workers nor the society suffers any kind of damages” . All safety related requirements to be fulfilled by the industry as legal requirement before start of work.
  150. 150. Safety and Health Safety Program -: Safety program deals with the prevention of accidents and with minimising the resulting loss and damage to person and property. Five principles that govern the safety program of an organisation are -:1) Industrial accidents are a the result of multiple factors. So these factors have to be traced to their root causes, which are usually falls in the management system arising from poor leadership from top, inadequate supervision, no attention to design safety system.
  151. 151. Safety and Health2) The most important function of safety programmes is to identify potential hazards, provide effective remedial actions. This is possible only if there are -:a) Effective system for reporting all accidents causing damage or injury.b) Adequate accidents records.c) Systematic procedures for carrying out safety checks, inspections.d) Methods of ensuring that safety equipment is maintained.
  152. 152. Safety and Health3) Safety policy of the organisation should be determined by the top management and it must continuously involved in monitoring safety performance.4) The management and supervision must be made fully accountable for safety performance in the working areas they control.5) All employees should be given thorough training in safe methods of work and they should get regular guidance on eleminating safety hazards.
  153. 153. Safety and Health Safety Process -: Strategic choices development of safety policy Organisation for safety Analysis of causes of accidents Implementation of program Evaluation of effectiveness
  154. 154. Safety and Health Strategic choices – Management must make decision regarding safety of their workers. Some strategic choices are-:1) Must determine the level of protection. Some co because of financial constraints prefer low level.2) Must decide whether a safety program will be formal or informal. Formal have written regulation & carefully monitored. Informal are enforced because of pressure and include good training.
  155. 155. Safety and Health3) Management can be proactive or reactive.4) Management can use safety of workers as a marketing tool of the organisation.
  156. 156. Safety and Health Health - : The well being of the employees in an industrial establishment is affected by accidents and by ill health – physical as well as mental. Health in Industry can be discussed through following angles-:1) Physical health2) Mental health3) Noise control4) Stress management5) Violence at work place
  157. 157. Safety and Health Healthhazards -: Health hazards Causes Lung cancer oven emissions, smokes Leukemia Radiation Reproductive problems Radiation Vision Chemical fumes, Office equip. Hearing High noise level
  158. 158. Safety and Health Mental health -: Specially at executive cadre. Three reasons for this development are mental breakdowns because of pressure & tensions. Mental disturbances because of reduced productivity & lower profits. Mental illness alcoholism & poor human relations.
  159. 159. Safety and Health NoiseControl -: Noise can only be minimised but can not be totally eliminated. Constant exposure to noise not only effects hearing ability but also effect the general health of the employees.
  160. 160. Safety and Health Work stress -: refers to an individuals response to a disturbing factor in the environment . Stress is mostly understood to be negative, but it has positive dimension also. When stress brings out something better from an individual, it is called eustress. Violence at work place -: