Human resource management need of the time

1. Summer Project Report
On
Human Resource Management -
Need of the Time
Submitted by: Virang B. Darji
Roll no: 03018
MBA – I
2003-05
Work done at: Punyam management services Pvt. Ltd.
In partial fulfillment of requirement of summer training –
MBA Program.
At
Navanitlal Ranchhodlal Institute of Business Management.
Gujarat University
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2. TABLE OF CONTENT
.......................................................................................................................................1
PREFACE.....................................................................................................................3
EXECUTIVE SUMMARY............................................................................................5
COMPANY PROFILE..................................................................................................6
PUNYAM GROUP ORGANIZATION STRUCTURE................................................8
INTRODUCTION.......................................................................................................14
HUMAN RESOURCE PLANNING..........................................................................19
....................................................................................................................................19
JOB ANALYSIS..........................................................................................................23
.....................................................................................................................................23
RECRUITMENT........................................................................................................26
SELECTION...............................................................................................................30
TRAINING & DEVELOPMENT..............................................................................32
PERFORMANCE APPRAISAL................................................................................38
EMPLOYEE WELFARE...........................................................................................43
MOTIVATION............................................................................................................46
INDUSTRIAL RELATION........................................................................................51
GRIEVANCE PROCEDURE.....................................................................................55
COLLECTIVE BARGAINING..................................................................................58
TRADE UNION..........................................................................................................62
CASE STUDY.............................................................................................................63
CONCLUSION............................................................................................................76
BIBLIOGRAPHY........................................................................................................77
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3. PREFACE
The concept of human resource management is of comparatively
recent origin. This does not mean that over the decade’s people in all
walks of life have not applied the basic philosophy of human resource
management. The fact is, it is only in the recent past that an organized
body of thoughts and principals which holds the developments of human
ability as an investment and not cist, has been formulated and propagated.
Manpower is indisputably the basic resource. It is an indispensable means
of converting other resources for achievement of organizational goals.
Human resource management is an integrated strategy and planned
development process for effective utilization of human resource and
organization. It is rather a total matching process between Hard S’s
(structure, system and strategy) and soft S’s (staff, skill, style and super
ordinate goals).
An increasing number of organizations place heavy emphasis on
manager’s process skills in working closely with people of varied
background, and in motivating employees, maintaining morale, building
trust, gaining commitment, fostering teamwork, leading innovation and
facilitating organizational change. On the other hand managers are
expected to engage in a wide variety of HRM activities include hiring the
right person for the right job, inducting and training new employees,
appraising and managing the performance of super ordinates, controlling
labor cists, managing organizational change and creating a corporate
culture, understanding international dimension of organizational behavior
and developing skills in cross-cultural negotiation.
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4. ACKNOLEDGEMENT
I would like to express my profound gratitude to Mr. Devang
Jhaveri. For giving me the opportunity to do the project and providing the
necessary information.
I would like to thank the employees of Punyam Management
Services Pvt. Ltd. For providing the necessary help in completion of the
project. I would like to thank all those individuals who have helped me
directly or indirectly for the successful completion of the project.
I take this opportunity to acknowledge my gratitude to Ms. Kavita
Kshatriya. Who spared her valuable time and provide the necessary
guidance and information for the successful completion of the project.
Without her support it would have been difficult to complete the project.
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5. EXECUTIVE SUMMARY
Many skills and competencies are necessary for successful
performance in HRM. Specifically, we can say that certified HR
practitioners must have exposure and an understanding in six specific
areas of the field. This includes Management practices, Selection and
Placement, Training and Development Compensation and Benefits,
Employee and Labor Relations, and Health, Safety, and Security.
As a subset of management, HRM practitioners are required to
have a general understanding of the field of management, its history and
theories, and the trends and their implications that exist today. They must
also understand the financial aspects of the business, its technology, and
its capabilities of the organizational members.
HRM practitioners require an understanding of why and how jobs
are filled and the various methods of recruiting candidates. Emphasis in
this area is on making good decisions within the legal parameters about
job candidates that use valid and reliable measures.
For employees to be successful in an organization, they must be trained
and developed in the latest technologies and skills relevant to their
current and future jobs. This means an understanding of adult learning
methodologies, relation training efforts to organizational goals and
evaluating the effort.
Compensation and Benefits are probably most expensive ones with
respect to the employment relationship. As such the HRM practitioners
must understand the intricacies involved in establishing a cost-effective
Compensation and Benefits package.
A basic need of individuals is the safety one must feel at the
workplace. This means freedom from physical and emotional harm.
Mechanisms must be in place to provide a safe work environment for
employees. Programs must permit employees to seek assistance for those
things affecting their work and personal lives.
Working with employees requires an understanding of what makes
employees function. Satisfying monetary needs alone will not have a
lasting impact. Employees need to be kept informed and have an avenue
in which to raise suggestions or complaints. When the case involves
unionized workers, the HRM practitioners must understand the various
laws that affect the labor- management work relationship.
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6. COMPANY PROFILE
Punyam (PMSPL) was born in November'1995 in the field of consultancy
for ISO: 9000, other international standard, and Management areas and is
growing and having total 250 clients for various types of certification and
very rich experience in ISO and management consultancy.
Group of 12 qualified engineers and management graduates (M.B.A)
having experience of different type of industry and done ISO: 9001, 2000
and other international certifications for many clients.
Having more than 225 clients Certified for ISO: 9000 and 1% of Total
Certified Companies in India.
Punyam is having its office in Vapi for clients located near Vapi areas as
well as Mumbai.
At present Punyam is taking 9 new clients per month and completing
their work within 3 months. After every 3 days average 1 client of
Punyam is getting ISO: 9001, ISO: 14001, HACCP, CE Mark or any
other certificate.
All the Punyam clients have got ISO: 9000 series certificate from the
leading certifying body like KPMG, BVQI, SGS, LLOYDS, DNV, TUV,
U.L. LAB. Etc.
Punyam is also working for vendor Developments & Auditing of
companies in India on behalf of leading international customers.
Punyam’s Clients include Capacity-wise No. 1 Companies in Asia as well
Leading group of India like
· Reliance Industries Limited.
· Modern Terry Towels Limited. (Modern Group)
· Gujarat Telephone Cables Limited.(GTCL Group)
· Meghmani Group Of Companies
· Metrochem Industries Limited
· Shri Digvijay Cement Co. Ltd.
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7. · Binani Cements Limited.
· INDEXTb (Industrial Extension Bureau., Govt. of Gujarat
7

8. PUNYAM GROUP ORGANIZATION STRUCTURE
DIRECTOR
DEVANG JHAVERI
OFFICE
ASSISTANT
ACCOUNT
MANAGER
TECHNICAL
MANAGER
MARKETING
MANAGER
COMPUTER
INCHARGE
CALIBRATION
INCHARGE
QUALITY
EXECUTIVES
SALES
REPRESENTATIVE
ENGINEERS
(MECH)
ENGINEERS
(ELECT)
ENGINEERS
(I/C)
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9. ORGANIZATION
Pay back of Punyam’s consultancy is less than 2 months because of
quantification of measurable goals and providing continual improvement
platform.
Punyam is Committed For
Personal Involvement & Commitment from first day.
Optimum Charges.
To Complete Project in Minimum Period (Within three Months).
Professional Approach
To Depute Dedicated Persons To Suit Client Requirements.
Hard Work And Get Work Done From Others
Strengthening clients by system establishment to make their house in
proper manner.
Establishing system in Finance and other departments for Fund flow
Management.
To establish strong internal control with the help of system.
Why many units had taken Punyam’s
Low Cost :
Practical suggestions recommended and having vast experience in the
bigger as well as small companies.
Experience in all kinds of industry like Engineering, Textile, Chemical,
Machine manufacturer, Electronics, Electrical, Pharmaceuticals, etc.
Professional approach and more than 12 highly qualified persons
comprise Engineers / MBA from various disciplines with extensive
experience are involved in Punyam’s team.
Realiable :
Practical suggestions recommended and having vast experience in the
bigger as well as small companies.
Experience in all kinds of industry like Engineering, Textile, Chemical,
Machine manufacturer, Electronics, Electrical, Pharmaceuticals, etc.
9

10. Professional approach and more than 12 highly qualified persons
comprise Engineers / MBA from various disciplines with extensive
experience are involved in Punyam’s team.
The Quantifiable measurable improvement objectives are made based on
Punyam’s rich experience to establish continual improvement.
Faster( 3 to 5 Months):
The painstaking work of documentation is done by us based on detail
study of your system.
Personal involvement and commitment from day one by us.
Punyam’s team of professionals monitor your activity to gear up
certification process.
Punyam is working since 1995.
Team:
At present 12 Engineers are working having qualification of B. E. /
M.B.A
Work Area
1. ISO: 9001 series and international certification consultancy
ISO: 9001
CE MARK
SA 8000
ISO:14001
OHSAS 18001
WHO GMP
HACCP
BS 7799
ISO:17025 (NABL ACCREDITATION)
2. Management consultancy
Strategic Management
HRD
Marketing
Purchase
Production and Quality Control
Finance
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11. 3. Calibration of all type of instruments
Punyam is providing help to the clients in management areas listed below
in 4 main ways.
1. Arranging in-house training programs.
2. Establishing system on project base.
3. Profit sharing based on improvement achieved.
4. Total management activity is done by us.
System Certification
Reliance Industries Limited. ISO : 9001(Quality System)
ISO : 14001 ( Environment)
HACCP ( Food Safety)
CE mark
WHO GMP
OHSAS:18001
BS 7799 ( Information Security Mgt. System)
SA 8000 ( Social Accountability)
NABL Accreditation (ISO/IEC 17025)
Strategic management
Competitive strategy
Organizational leadership for 21st century
Business Process Improvement(BPI)
Six sigma
Marketing
International marketing
Market research
Managing retailing
Institutional marketing
Product policy & new product management
Franchisees management
Customer based business strategies
SWOT analysis and marketing plans
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12. Purchase
Sharpening negotiation skills
Vendor development and evaluation
Supply chain management
System audit for vendors
Production and quality control
Project management
Process refinement
Excellence in manufacturing
Quality assurance establishment
Finance
Creative solutions to finance problems
Advanced data analysis for financial decisions
Strategic finance management
Finance and costing for non financial staff
HRD
Human resource management
Leadership & change management
Key performance appraisal system (KRA
Creative solutions to HR problems
Goal setting & performance management
Bench marking
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13. Devang K. Jhaveri, The Founder & CEO
A Senior Technocrat with Managerial Background.
Management Graduate with Brilliant Academic Career.
Worked in Quality Area at Arvind Mills Ltd.
Worked for ISO : 9000 & in Quality Area at ATIRA for four years and
helped 40 Companies.
Published more than Five Articles for ISO : 9000 & Quality System.
Education
B.E. (Textile Technology) Gold Medallist in Gujarat University (In 1986)
& M.B.A. (Finance).
Specialties
Quality Control, ISO: 9000 Quality Management System, ISO:14000
EMS, HACCP & TQM Techniques, CE MARK, WHO GMP, ,OHSAS:
18001, BS 7799, SA 8000, ISO 17025, Management Areas. Third Party
Audits, Vendor developments.
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14. INTRODUCTION
Meaning
Human resource management is a management function that helps
manager’s recruit, select, train and develops members for an organization.
These includes
· Conducting job analysis
· Planning labor need and recruiting job candidates
· Selecting job candidates
· Training new employees
· Managing wages and salaries
· Providing incentives and benefits
· Appraising performance
· Communicating
· Training and developing managers
· Building employee commitment
Function of HRM
· Planning-: A management function focusing on setting
organizational goal and objectives.
· Organizing -: A management function that deal with what jobs is
to be done, by whom, where decisions are to be made and the
grouping of employees.
· Leading -: A management function concerned with directing the
work of others.
· Controlling-: A management function concerned with monitoring
activities.
Strategic Human resource management
The linking of HRM with strategic goals and objectives in order to
improve business performance and develop organizational cultures.
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15. HRM Model
Nature of HRM
Human Resource planning
Job analysis
Recruitment
Selection
Placement
Training and Development
Remuneration
Motivation
Participative Management
Communication
Safety and Health
Welfare
Promotion, etc.
Industrial Relation
Trade Unionism
Dispute and their Settlement
Future of HRM
Ethical Issues in HRM
International HRM
Envi
r
on
me
nt
Competent
and Willing
Workforce
Organizational
Goals
15

16. Factor affecting Human resource management
TeTchenchonloogloicgailcal
EcEoncoonmoicmic
UnUionniosns
CuCltuurltaulral
HRM
HRM
Professionalis
Organizational
culture and
PoPlitoicliatilc-laelg-leagl al Professionalis
m
m
Organizational
culture and
conflict
conflict
External Forces
External forces include political-legal, economic, technological, and
cultural factors.
Political-Legal:
The political environment covers the impact of political institutions on
the HRM department. In a democratic political setup there are three
institutions which together constitute the total political environment.
They are – 1) the legislature, 2) the executive, and 3) the judiciary.
The legislature, also called Parliament at the central level and Assembly
at the state level, is the lawmaking body. The plethora of labor acts which
are in force are enacted by the legislature. The executive, popularly
known as the government, is the law-implementing body. The legislature
decides and the executive acts. The main function of the judiciary is to
ensure that both the legislature and the executive work within the
confines of the Constitution and in the public interest.
16

17. Economic:
Economic environment refers to all those economic forces which have a
bearing on the HR function. Growth strategy, industrial production,
agriculture, population, national and per capita income, money and
capital markets, supplier, customers, and industrial labor are the
components of the economic is globalization.
Technological:
Technology affects the HR function by the following ways
1. With the advent of technology, jobs tend to become more
intellectual or upgraded.
2. The employees who pick up and acquaint themselves with new
technology, the job will be challenging and rewarding.
3. Technology lays down the requirements for much of the human
interaction in organizations.
4. Job holders will become highly professionalized and
knowledgeable.
Cultural:
Culture creates the type of people who become members of an
organization.
· Culture trains people along particular lines, tending to put a
personality stamp upon them.
· The attitude of workers towards work is the result of their cultural
background.
· Time dimension, which influences HRM, has its roots in culture.
17

18. Internal Forces
Prominent internal forces are unions, organizational culture and conflicts,
and professional bodies.
Unions:
A trade union may be understood as an association of workers or
management formed to protect their own individual interests. The role of
a union is too well-known, not needing and elaboration here. All HR
activities- recruitment, selection, training, compensation, IR and
separation- are carried out in consultation with union leaders. The role of
unions becomes pronounced when a new wage agreement needs to be
signed.
Organizational culture and conflict:
Organizational culture is the product of all the organization’s features-its
people, its successes, and its failures. Organizational culture reflects the
past and shapes the future. It is the job of HR specialists t o adjust
proactively to the culture of the organization. For example, objectives can
be achieved in several acceptable ways. This idea, called equifinality,
means there are usually multiple paths to objectives. The key to success is
picking the path that best fits the organization’s culture.
Professional Bodies:
Professional Bodies arrange periodic training pogrammes, seminars and
conferences for the benefit of HR professional.
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19. HUMAN RESOURCE PLANNING
Human Resource Planning is essentially the process of getting the right
number of qualified people into the right job at the right time. It is a
system of matching the supply of people with openings the organization
expects over a given time frame.
Importance
1. future personnel needs
2. coping with change
3. creating highly talented personnel
4. protection of weaker section
5. international strategies
6. foundations of personal functions
7. increasing investment in human resources
8. resistance to change and move
9. more time is provided to locate talent
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20. HUMAN RESOURCES PLANNING PROCESS
Define Organization
Mission
Establish corporate goals
and objectives
Assess current human
resources
------------------------------
HRMS; job analysis
Compare demand for and
supply of human
resources
Demand
exceeds
supply
Supply
exceeds
demand
Recruitme
nt
Decruitme
nt
Demand
for labor
Supply of
Human
resources
20

21. HUMAN RESOURCES INFORMATION SYSTEM:
A human resources information system is a systematic procedure for
collecting, storing, maintaining, retrieving and validating data needed by
an organization about its human resources. The HRIS is usually a part of
the organization’s MIS.
· HRIS is a database system that keeps important information about
employees in a central and accessible location.
· HRIS provide quick and responsive reports.
· With readily available, organizations are in better position to
quickly move forward in achieving their organizational goals.
Uses of HRIS
· HR Planning and Analysis
 Organization Charts
 Staffing Projections
 Skills Inventories
 Turnover Analysis
 Restructuring Costing
· Equal Employment
 Affirmative Action Plan
 Applicant Tracking
 Availability Analysis
 Workforce Utilization
· Staffing
 Recruiting Sources
 Job Offer Refusal Analysis
· HR Development
 Employee Training Profile
 Training Needs Assessments
 Career Interests and Experience
· Compensation and Benefits
 Pay Structure
 Wage/Salary Costing
 Flexible Benefit Administration
 Vacation Usage
· Health, Security, and safety
 Safety Training
 Accident Records
 Material Data Records
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22. · Employee and Labor Relations
 Union Negotiation Costing
 Auditing Records
 Attitude Survey Results
 Exit Interview Analysis
 Employee Work History
Replacement Charts: HRM organizational charts indicating positions
that may become vacant in the near future and the individuals who
may fill the vacancy.
22

23. JOB ANALYSIS
Job analysis is a systematic exploration of the activities surrounding and
within a job. It defines the job’s duties, responsibilities, and
accountabilities.
Process of Job analysis
Purpose of Job analysis:
Strategic Choices
Gather Information
Process Information
Job Description
Job Specification
Job-related data obtained form a job analysis programmed are useful in
HRP, employee hiring training, job evaluation, compensation,
performance appraisal, computerized personnel information systems , and
safety and health.
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24. Methods of collecting data
1. Observation Method : A job analysis technique in which data are
gathered by watching employees work.
2. Individual Interview Method : Meeting with an employee to
determine what his or her hob entails.
3. Group Interview Method : Meeting with a number of employees
to collectively determine what their jobs entail.
4. Structured Questionnaire Method : A specifically designed
questionnaire on which employee’s rate tasks they perform on their
jobs.
5. Technical Conference Method : A job analysis technique that
involves extensive input forms the employee’s supervisor.
6. Dairy Methods : A job analysis method requiring job incumbents
to record their daily activities.
7. Position Analysis Questionnaire : A job technique that rates
jobs in 194 elements in six activity categories.
Technique of job design
Job Rotation: Job Rotation is a movement of employee from job to job.
In job rotation employee perform different jobs, but, more or less, jobs of
the same nature.
Job Enlargement: The combining of various operations at a similar
level in to one job to provide more variety for workers and thus increase
their motivation and satisfaction represents an increase in job scope
Job Enrichment: The combining of several activities from a vertical
cross section of the organization in to one job to provide the worker with
more autonomy and responsibility; represent an increase in job depth.
Autonomous Teams: A self directed work team is an intact group of
employee who are responsible for a “whole” work process or segment
that delivers a product or service to an internal or external customer.
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25. High
Performanc
e Work
Design
Autonomou
s Teams
Work
Simplificati
on
Job Design
Job
Enrichment
Job
Rotation
Job
Enlargeme
nt
High Performance Work Design: It is a means of improving
performance in an environment where positive and demanding goals are
set. It starts from principles of autonomous group working and develops
an approach which enables groups to work effectively together in
situation where the rate of innovation is high. Operation flexibilities are
important and there is, therefore, the need for employee’s to gain and
apply new skills quickly with minimum supervision.
Work Simplification: “A job is broken down in to small sub parts and
each part, is assigned to one individual” is called work simplification.
25

26. RECRUITMENT
Recruitment is a ‘linking function’-joining together those with jobs to fill
and those seeking jobs. It is a ‘joining process’ in that it tries to bring
together job seekers and employer with a view to encourage the former to
apply for a job with the latter.
Purpose:
1. Determine the present and future requirements of the organization
in conjunction with its personal planning and organization goal.
2. Increase the pool of job candidate at minimum cost.
3. Help increase the success rate of selection process by reducing the
number of visibly under qualified or qualified job applicants.
4. Reduce the probability that job applicant, ones recruited and
selected, will leave the organization only after short period of time.
5. Meet the organizati8ons legal and social responsibilities.
6. Identifying and preparing potential job applicants who will be
appropriate candidates.
7. Increase organizational and individual effectiveness in the short
term and long term.
8. Evaluate effectiveness of various recruiting techniques and sources
for all types of job applicants.
Recruiting Sources:
Recruiting Sources may be broadly divided in to two categories: internal
sources and external sources.
Internal Source:
Internal search:
· Promotions and Transfer
A transfer is a lateral movement within the same grade, form
one job to another. It may lead to changes in duties and
responsibilities, working condition, etc. Promotion on the other
hand, involves movement of employee from a lower level
position to a higher level position accompanied by changes in
duties, responsibilities, status and value.
· Job posting
It is another way of hiring people from within. In which the
organization publicizes job openings on bulletin boards,
electronic media and similar outlets. This method offers a
26

27. chance to highly qualified applicants working within the
company to look for growth opportunities within the company.
· Employee Recommendations :
It is a recommendation from current employee regarding a job
applicant. The logic behind this is that “it takes one to know
one”. Employees working in the organization, in this case, are
encouraged to recommend the names of their friends working in
other organizations for a possible vacancy in the near future.
External Sources:
· Campus recruitment
It is a direct method of recruiting by visiting and participating in
college campuses and their placement centers. Here the
recruiters visit reputed educational institutions, colleges and
universities with a view to pick up job aspirants having requisite
technical professional skills. Advantages of this method are the
placement center helps locate applicants and provides resumes
to organizations; applicants can be prescreened. On the negative
front, campus recruiting means hiring people with little or no
work experience. The organizations will have to offer some
kind of training to the applicants.
· Advertisements
It is an indirect method of recruiting. These include
advertisements in newspapers, trade, professional and technical
journals; radio and television; etc. This method is appropriate
when the organization intends to reach a large target group and
the organization wants a fairly good number of talented people-who
are geographically spread out.
· Employment exchanges
As a statutory requirement, companies are also expected to
notify their vacancies through the respective Employment
exchanges, created all over India for helping unemployed youth,
displaced persons, ex-military personnel, physically
handicapped, etc. As per the Act all employers are supposed to
notify the vacancies arising in their establishments form time to
time.
· Private employment search firms
A search firm is a private employment agency that maintains
computerized lists of qualified applicants and supplies these to
employers willing to hire people form the list for a fee.
27

28. · Executive search
These are the private employment agencies that specializing in
middle and top level placement, as well as hard-to-fill positions
such as actuaries or IT specialists. The potential employer may
be willing to pay a very high fee to locate exactly the right
individual to fill the vacancy.
· Unsolicited applicants
Companies generally receive unsolicited applications for job
seekers at various points of time. The number of such
applications depends on economic conditions, the image of the
company and the job seeker’s perception of the types of jobs
that might be available, etc. Such applications are generally kept
in a data bank and whenever a suitable vacancy arises, the
company would intimate the candidate to apply through a
formal channel.
· Internet recruiting
In this method the recruiting is done by internet here the Web
pages are used as resumes. The organization put their
requirement on their web site. They also put the details of the
work, qualification, etc.
Some aggressive job candidates are also using the internet.
They set up their own web pages to “sell” their job candidacy.
This method provides a low-cost means for most businesses to
gain unprecedented access to potential employees worldwide.
Recruitment Alternatives:
Since recruitment and selection costs are high firms these days are trying
to look at alternatives to recruitment. These are
· Overtime : Short term fluctuations in work volume could best be
solved through overtime. The employer benefits because he
costs of recruitment and training could be avoided.
· Subcontracting : To meet a sudden increase in demand for its
products and services instead of hiring a new staff the firm can
meet increased demand by allowing an outside specialist agency
to undertake part of the work to mutual advantage.
· Temporary employees : These are particularly useful in meeting
short term human resource needs. In this case the firm can avoid
the expenses of recruitment and the painful effects of
absenteeism, labor turnover, etc. It can also avoid fringe
benefits associated with regular employment.
28

29. · Employee leasing : Hiring permanent employees of another
company who possess certain specialized skills on lease bases
to meet short-term requirements is another recruiting practice
followed by firms in developed countries.
Factor affecting recruiting:
· Image of the organization
· Attractiveness of the job
· Internal organization policies
· Government policies
· Recruiting cost
29

30. SELECTION
SELECTION
Process:
External
Environment
Internal
Environment
Preliminary
Interview
Selection Test
Employment
Interview
Reference and
background
analysis
Selection
Decision
Physical
Examination
Job Offer
Employment
Contract
Evaluation
REJECT
EMPLOYEE
30

31. PLACEMENT:
· It is understood as the allocation of people to jobs.
· It is the assignment or re-assignment of an employee to a new or
different job.
· It includes initial assignment of new employees and promotion,
transfer, or demotion of present employees
Assessment-classification model and employee placement
Collect details about the employee
Construct his or her profile
Which subgroup profile does the individual’s profile best fit?
Compare subgroup profile to hob family profiles
Which job family profile does subgroup profile best fit?
Assign the individual to job family
Assign the individual to specific job after further counseling and
assessment
31

32. TRAINING & DEVELOPMENT
Training: A process whereby people acquire capabilities to aid in the
achievement of organizational goals.
Importance:
How Training Benefits the organization
· Leads to improved profitability and / or more positive attitudes
towards profit orientation.
· Improve the job knowledge and skills at all levels of organization.
· Improve the morale of the work force.
· Helps people identify with organizational goals.
· Helps create a better corporate image.
· Foster authenticity openness and trust.
· Improve relationship between boss and subordinate.
· Aids in organizational development.
· Helps prepare guidelines for work.
· Learn from trainee.
· Aids in understanding and carrying out organizational policies.
· Provides information for future needs in all areas of the
organization.
· Organization gets more effective decision-making and problem-solving
skill.
· Aids in development for promotion from within.
· Aids in developing leadership skill, motivation, loyalty, better
attitudes and other aspect that successful workers and manager
usually display.
· Aids in increase in productivities and/or quality of work.
· Helps keeps cost down in many areas, e.g. production, personnel,
administration, etc.
· Developed a sense of responsibilities to the organization for being
competent and knowledgeable.
· Improves labor-management relation.
· Reduce out side consulting cost by utilizing competent internal
consultation.
· Simulate preventive management as oppose to putting out fire.
· Eliminate sub optimal behavior (such as hiding tools).
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33. · Creates and appropriate climate for growth, communication.
· Aids in improving organizational communication.
· Helps employees adjust to change.
· Aids in handling conflict, thereby helping to prevent stress and
tension.
Benefits to the individual
· In making better decision and effective problems solving.
· At in encouraging and achieving and self development and self
confidence.
· Helps a person handle stress, tension, frustration and conflict.
· Increase job satisfaction and recognition.
· Helps a person develop speaking and listening skills.
· Helps eliminate fear in attempting new tasks.
Benefit in personnel and human relation
· Improve communication between groups and individual.
· Provide information in other government laws and administrative
policies.
· Improve interpersonal skills.
· Improve morale.
· Builds cohesiveness in groups.
· Makes the organization a batter to work and live.
33

34. Training Process:
Organizational Objectives and Strategies
Assessment of Training Needs
Establishment of Training Goals
Devising Training Program
Implementation of Training Program
Evaluation of Results
Methods of Training:
On-the-Job Training:
· Places the employees in actual work situation and make them
appear to be immediately productive.
· It is learning by doing.
Types of the On-the-Job Training
 Apprenticeship Programs: put the trainee under the guidance
of a master worker
 Training: A systematic approach to on-the-job training
consisting of four basic steps.
1. prepare the trainee by telling them about the job and
overcoming their uncertainties;
34

35. 2. Presenting the instruction, giving essential information
in a clear manner;
3. Trainee try out the job to demonstrate their
understanding;
4. Placing the workers in the job, on their own;
Stages for On–the-Job Training
Prepare the Learner
Put them at ease
Find out what they know
Get them interested
Do follow – up
Put them on their own
Check frequently
Reduce follow –up as performance
improves
Off-the-Job Training
Present the Information
Tell, show, question
Present one point at a time
Make sure they know
Trainees Practices
Trainees perform tasks
Ask question
Observe and correct
Evaluate mastery
 Classroom lectures: Lecture designed to communicate specific
interpersonal, technical, or problem-solving skills.
 Videos and Films: Using various media productions t
demonstrate specialized skills that are not easily presented by other
training methods.
 Simulation Exercise: Training that occurs by actually
performing the work. This may include case analysis, experiential
exercises, role playing or group decision making.
 Computer-Based Training: Simulating the work environment
by programming a computer to imitate some of the realities of the
job.
35

36.  Vestibule Training: Training on actual equipment used on the
job but conducted away from the actual setting – a simulated work
station.
 Programmed instruction: Condensing training materials into
highly organized, logical sequences may include computer
tutorials, interactive video disks, or virtual reality simulation.
EMPLOYEE DEVELOPMENT
Effort to improve employees’ ability to handle a variety of assignment.
Methods of employee development
· Job Rotation : Job rotation involves moving employees to various
positions in the organization in an effort to expand their skills,
knowledge, and abilities.
· Assistant-To Position : Employees with demonstrated potential are
some times given the opportunity to work under seasoned and
successful manager, often in different areas of the organization.
Here individuals perform many duties under the watchful eye of a
supportive coach.
· Committee Assignment : It provides an opportunity for the
employee to share in decision making, to learn by watching others,
and to investigate specific organizational problems.
· Lecture, coerces and seminar : It provides an opportunity for
individual to acquire knowledge and develop their conceptual and
analytical abilities. For many organizations, they were offered in-house
by the organization itself, through outside vendors, or both.
· Simulation : Any artificial environment that attempts to closely
mirror an actual condition.
· Outdoor Training : The primary focus of such training is to teach
trainees the importance of working together of gelling as a team.
Out door training typically involve some major emotional and
physical challenge. The purpose of such training is to see how
employees react to the difficulties that nature presents to them. Do
they face these dangers alone?
36

37. Management Development:
Management development is a systematic process of growth and
development by which the managers develop their abilities to manage.
It is concerned with improving the performance of the managers by
giving them opportunities for growth and development.
Objectives of Management Development Programmes:
· To overhaul the management machinery.
· To improve the performance of the managers.
· To identifies the persons with the required potential and prepare
them for more senior positions.
· To increase the morale of the members of the management group.
· To increase the versatility of the management group.
· To stimulate creative thinking.
· To improve the thought processes and analytical abilities.
· To understand economic, social, technical and the conceptual
issues.
· To understand the problems of human relation skills.
37

38. PERFORMANCE APPRAISAL
It is method of evaluating the behavior of employees in the work spot,
normally including both the quantitative and qualitative aspects of job
performance. It is a systematic and objective way of evaluating both
work-related behavior and potential of employees. It is a process that
involves determining and communicating to an employee how he or she
is performing the job and ideally, establishing a plan of improvement.
Features:
· The appraisal is a systematic process. It tries to evaluate
performance in the same manner using the same approach. A
number of steps are followed to evaluate and employee’s strength
and weaknesses.
· It provides an objective description of an employee’s job’s relevant
strengths and weaknesses.
· It tries to find out how well the employee is performing the job and
tries to establish a plan for further improvement.
· The appraisal is carried out periodically, according to a definite
plan. It is certainly not a one-shot deal.
OBJECTIVE:
1. To effect promotion based on competence and performance.
2. To confirm the services of probationary employee upon their
completing the probationary period satisfactorily.
3. To assess the training and development needs.
4. To decide upon a pay raise where regular pay scales have not been
fixed.
5. To let the employee know where they stands in their performance.
6. To improve communication between employees and employer.
7. Performance Appraisal can be used to determine whether HR
program such as selection, training and transfer have been effective
or not.
Who will Appraise?
The appraiser may be any person who has thorough knowledge about the
job content, contents to be appraised, standards of contents and who
observes the employee while performing a job. Typical appraisers are:
supervisors, peers, subordinates, employees themselves and users of
services and consultants.
38

39. PROCESS
Establish performance standards
Mutually set measurable goals
Measure actual performance
Compare actual performance with standard
Discuss the appraisal with the employees
If necessary, initiate corrective action
Yearly Performance Review
Name of the employee:
Date:
Use the following scale to rate the employee
(1 poor; 2 below average; 3 average; 4 good; 5 excellent)
a) Absenteeism 1 2 3 4 5
b) Quality of work 1 2 3 4 5
c) Attitude toward the job 1 2 3 4 5
d) Personality-related factors 1 2 3 4 5
e) Interpersonal relations 1 2 3 4 5
Supervisor ________ Employee __________
39

40. APPRAISAL METHODS:
· The Essay Appraisal : A performance appraisal method where
by an appraiser writes a narrative about the employee.
· Critical Incident Appraisal : A performance appraisal method
that focuses on the key behaviors that make the difference between
doing a job effectively and ineffectively.
· Check List Appraisal : A performance appraisal method in
which a rater checks of those attributes of an employee that apply.
· Adjective Rating Scale Appraisal : A performance appraisal
method that lists a number of traits and a range of performance for
each.
· Force Choice Appraisal : A performance appraisal method in
which the rater must choose between two specific statements about
an employee’s work behavior.
· Behaviorally Anchored Rating Scale : A performance
appraisal method that generate critical incidence in develops
behavioral dimension of performance. The evaluator appraises
behaviors rather than their traits.
· 360 Degree Appraisal : A performance appraisal method in
which supervisors, peers, employees, customers and the like
evaluate the individual.
INCENTIVE PAYMENT:
Individual Incentive:
· Merit Pay: An increase in one’s pay usually given on annual basis.
· Piecework Plan: A compensation plan where by employees are
typically paid for the number of units they actually produce.
Group Incentive:
· Plant Wide Incentive: An incentive system that rewards all
members of the plant based on how well the entire group
performed.
· Scanlon Plan: An organization wide incentive program focusing
on co-operation between manager and employee through sharing
problems, goals and ideas.
· Improshare: A special type of incentive plan using a specific
mathematic formula for determining employee bonus.
40

41. Pay for Performance: Rewarding employees based on their performance.
· Competency Based Compensation Program: Organizational pay
system that reward skill, knowledge and behavior.
· Broad Banding: Pay employees at present levels based on level of
competencies they processes.
Team Based Compensation: Compensation based on how well the team
performed.
Fringe Benefit:
The term fringe benefits refer to the extra benefits provided to employees
in addition to the normal compensation paid in the form of wage or
salary.
The main features of fringe benefits, as they stand today, may be stated
thus:
· They are supplementary forms of compensation.
· They are paid to all employees based on their membership in the
organization.
· They are indirect compensation because they are usually extended
as a condition of employment and are not directly related to
performance.
· They help raise the living conditions of employees.
· They may be statutory or voluntary. Provident find is a statutory
benefits where as transport is a voluptuary benefit.
Objectives of Fringe Benefits:
· To create and improve sound industrial relations.
· To motivate the employees by identifying and satisfying their
unsatisfied needs.
· To provide security to the employees against social risks like old
age benefits and maternity benefits.
· To protect the health of the employees and to provide safety to the
employees against accidents.
· To promote employees’ welfare.
· To create a sense of belongingness among employees and to retain
them. Hence fringe benefits are called golden handcuffs.
· To meet the requirement of various legislations relating to fringe
benefits.
41

42. Types of fringe benefits
Payment for time not
worked Employee security Safety and health Welfare recreational
facilities
Hours
of
work
Paid
holidays
Shift
premiu
m
Paid
vacatio
n
Old age and retirement
benefits
Holid
ay
pay
Retrenchment
compensation
Lay off
compensation
Safety measures Workmen’s
compensation Health benefits
Canteens Consumer
societies
Credit
societies Housing Legal
aids
Employee
counselin
g
Welfare
organizati
ons
Holiday’
s homes
Educatio
nal
facilities
Transpor
tation
Parties &
picnic
Miscella
neous
Providen
t fund
Deposit
linked
insurance
42
Gratuity
Pension Medica
l
benefits

43. EMPLOYEE WELFARE
Employee Welfare is a comprehensive term including various
services, benefits and facilities offered to employees by the employers.
The welfare amenities are extended in addition to normal wages and
other economic rewards available to employees as per the legal
provisions. According to Dr Parandikar, “Employee welfare work is
work for improving the health, safety and general well being and the
industrial efficiency of the workers beyond the minimum standard lay
down by labor legislation”.
Importance:
Employee Welfare serves the following purposes:
· Enable workers to have a richer and more satisfactory life
· Raises the standard of living of the workers by indirectly reducing
the burden on their pocket. Welfare measures will improve the
physical and psychological health of employees, which in turn,
will enhance their efficiency and productivity.
· Absorbs the shocks injected by industrialization and urbanization
on workers.
· Promotes a sense of belonging among workers, preventing them
form resorting to unhealthy practices like absenteeism, labor
turnover, strike, etc.
· Prevents social evils like drinking, gambling, prostitution, etc., by
improving the material, social and cultural conditions of work.
Congenial environment as a result of welfare measures will act as
a deterrent against such social evils.
43

44. TYPES:
· Welfare measures inside the workplace.
1. Condition of the work environment.
2. Conveniences
3. Workers’ health services.
4. Women and child welfare.
5. Workers’ recreation.
6. Employment follow-up.
7. Economic services.
8. Labor-management participation.
9. Workers’ education.
· Welfare measures outside the workplace.
1. Housing Facilities.
2. Water, sanitation, waste disposal.
3. Roads, lighting, parks, recreation, playgrounds.
4. Education Facilities.
5. Markets co-operatives, consumer and credit society.
6. Bank.
7. Transport.
8. Communication facilities.
9. Health and medical services.
10.Recreation. Etc.
11.Watch and ward; security.
12.Community leadership development.
44

45. 45

46. MOTIVATION
Motivation is the work a manager performs to inspire and encourage
people to take required action. According to Scott,” motivation is a
process of stimulating people to action to accomplish desired goals”.
IMPORTANCE
1. Motivated employees are always looking for better ways to do a
job.
2. A motivated employee, generally, is more quality oriented.
3. Highly motivated workers are more productive than apathetic
workers.
4. Motivated employees are stable.
DETERMINANTS OF MOTIVATION
Three types of forces generally influence human behavior
1. Force operating within the individual: Each person is different and
a variety of items may prove to be motivating, depending upon the
needs of the individual, the situation the individual is in and what
rewards the individual expects for the work done. It is the duty of
the manager to match individual needs and expectations to the
type of rewards available in the job setting.
2. Force operating within the organization: Climate plays an
important part in determining worker’s motivation. The climate in
an organization is determined by a number of variables such as its
leadership style, autonomy enjoyed by members, growth
prospects, emotional support form members, reward structure, etc.
3. Force operating in the environment: Culture, norms, customs,
images and attributes accorded by society to particular jobs,
professions and occupations and the worker’s home life-all play a
strong motivational role. An individual may prefer to do the job of
an officer rather than serve as a college teacher. In other word
factors such as social status and social acceptance play an
important role in shaping the motivations of people.
46

47. MOTIVATION PROCESS
Unsatisfied need
Drives
Search Behavior
Satisfied needs
Reduction of tension
New unsatisfied needs
MOTIVATION THEORIES:
Tension
1. Early Theories
· Scientific Management
· Human Relation Model
2. Contemporary Theories
· Content Theories
 Maslow’s Need Hierarchy Theory
 Alderfer’s ERG Theory
 McGregor's Theory X and Theory Y
 Herberg's two-factor theory
 McClelland’s Achievement Motivation Theory
47

48. · Process Theories
 Vroom’s Expectancy Model
 Adam’s Equity Theory
 Porter and Lawler’s Performance Satisfaction Theory
Maslow's Need Hierarchy
(1) A hierarchy of five basic needs
· Physiological needs: hunger, thirst, shelter, sex, and other bodily
needs
· Safety needs: security and protection from physical and emotional
harm
· Social needs: affection, belongingness, love, acceptance, and
friendship.
· Esteem needs: internal esteem (self-respect, autonomy,
achievement), and external esteem (status, recognition, attention,
power, and face)
· Needs for self-actualization: the drive to best realize one's
potential, including potential in personal growth, achievements,
and self-fulfillment.
Low-order needs: physiological and safety needs, they are satisfied
externally (payment, unions)
High-order needs: social, esteem, and self-actualization needs, they are
satisfied internally.
(2) Basic assumptions:
· A substantially satisfied need no longer motivates
· It is the lowest level of ungratified need in the hierarchy that
motivates behavior
· As a lower level of need is met, a person moves up to the next level
of needs as a source of motivation
(3) The socio-cultural construction of need hierarchy
Alderfer's ERG theory
(1). Three groups of core needs
48

49. · Existence needs: physiological and safety needs
· Relatedness needs: the desire foe maintaining important
interpersonal relationships: social needs, and the external
components of the esteem needs
· Growth needs: an intrinsic desire for personal development: the
intrinsic component of esteem, and self-actualization
(2). Basic assumptions:
· Satisfied low-order needs lead to the desire to satisfy higher-order
needs.
· Multiple needs can be operating as motivators at the same time.
· Frustration in attempting to satisfy a higher-level need can result in
regression to a lower need.
McGregor's theory X and theory Y
Theory X: the assumption that employees dislike work, are lazy, dislike
responsibility, and much be coerceded to perform.
Theory Y: the assumptions that employees like work, are creative, seek
responsibilities, and can excise self-direction.
· Theory X: assumes that lower-order needs motivate individual
behavior.
· Theory Y: assumes that higher-order needs motivate individual
behavior.
Herberg's two-factor theory
(1). Contrasting views of satisfaction and dissatisfaction
· Traditional view:
Satisfaction   Dissatisfaction
· Herzberg's view:
Satisfaction   No satisfaction
No dissatisfaction   Dissatisfaction
49

50. (2). Two factors
· Motivation factors: the factors that lead to job satisfaction. They
are mostly intrinsic factors such as achievement, recognition, work
itself, responsibility, advancement, and growth
· Hygiene factors: the factors that lead to the prevention of
dissatisfaction. They are mostly extrinsic factors such as compony
policy and administration, supervision, work condition, and salary.
Management implications: job enlargement & enrichment,
empowerment, and participative management
Criticism:
· Job satisfaction does not necessarily lead to high motivation
· Attribute theory as an explanation
McClelland’s Achievement Motivation Theory
· Need for achievement: the drive to excel, to set a higher goal, to
seek higher responsibility, and to strive to succeed.
The characteristics of a higher achiever:
· Seek personal responsibility
· Seek feedback on their performance
· Seek moderate risks and goals
· Need for power: the desire to have impact on, to influence and
control the behavior of others.
 Socialized power: used for social benefits
 Personalized power: used for personal gain
· Need for affiliation: the desire to be liked and accepted by others.
50

51. INDUSTRIAL RELATION
· Industrial Relations are the relations mainly between employees
and employer.
· Industrial Relations are the outcome of the practice of human
resource management and employment.
· These relations emphasis on accommodation other party’s interest,
values and needs. Parties develop skills of adjusting to and
cooperating with each other.
· Industrial Relations are governed by the system o rules and
regulations concerning work, work place and working community.
· The main purpose is to maintain harmonious relations between
employees and employer by solving their problems through
grievance procedure and collective bargaining.
· The government influences and shapes industrial relations through
industrial relations policies, rules, agreements, mediation, awards,
acts etc.
· Trade Unions are another important institution in the Industrial
relations. Trade unions influence and shape the industrial relations
thorough collective bargaining.
OBJECTIVE OF IR
1. To promote and develop congenial labor management relations;
2. To enhance the economic status of the worker by improving
wages, benefits and by helping the worker in evolving sound
budget;
3. To regulate the production by minimizing industrial conflicts
through state control;
4. To socialize industries by making the government as an
employer;
5. To provide an opportunity to the workers to have a say in the
management and decision making;
6. To improve workers’ strength with a view to solve their
problems through mutual negotiation and consultation with the
management;
7. To encourage and develop trade unions in order to improve the
workers’ strength;
8. To avoid industrial conflict and their consequences; and
9. To extend and maintain industrial democracy.
51

52. Functions of Industrial Relation
· Communication is to be established between workers and the
management in order to bridge the traditional gulf between
the two.
· To establish a rapport between managers and the managed.
· To ensure creative contribution of trade unions to avoid
industrial conflicts, to safeguard the interests of workers on
the one hand and the management on the other hand, to
avoid unhealthy, unethical atmosphere in an industry.
· To lay down such Consideration which may promote
understanding, creativity and cooperavt9veness t o raise
industrial productivity, to ensure better workers’
participation.
Characteristics of Industrial Relation
· Industrial relations are outcome of employment relationship in an
industrial enterprise.
· Industrial relations develop the skills and methods of adjusting to
and cooperating with each other.
· Industrial relations system creates complex rules and regulations to
maintain harmonious relations.
· The Government involves shaping the industrial relations through
laws, rules, agreements, awards etc.
· The important factors of industrial relations are; employees and
their organizations, employer and their associations and
Government.
PRINCIPLES OF SOUND IR
1. Recognition of the dignity of the individual and equality of
opportunity.
2. Mutual respect, confidence, understanding, goodwill and
acceptance of responsibility on the part of employer, management
and workers and their representatives in the exercises of the rights
and duties in the operation of the industry.
52

53. 3. Similarity, there has to be an understanding between the various
organizations of employers and employees who represent the
management and workers.
SCOPE OF INDUSTRIAL RELATIONS
a) Relation ship among employees, between employees and their
superiors or managers.
b) Collective relations between trade unions and management. It
is called union management relations.
c) Collective relations among trade unions, employers’
associations and government.
FACTORS OF INDUSTRIAL RELATIONS
1) Institutional Factors: These factors include government policy,
labor legislations, voluntary courts, collective agreement,
employee courts, employers’ federations, social institutions like
community, caste joint family, creed, system of beliefs,
attitudes of works, system of power status etc.
2) Economic Factors: These factors include economic
organization, like capitalists, communist mixed etc., the
structure of labor force demand for and supply of labor force
etc.
3) Technological Factors: These factors include mechanization,
automation, rationalization, computerization etc.
4) Social and Cultural Factors: These factors include population,
religion, customs and traditions of people, race ethnic groups,
cultures of various groups of people etc.
5) Political Factors: These factors include political system in the
country, political parties and their ideologies, their growth,
mode of achievement of their policies, involvement in trade
unions etc.
6) Governmental Factors: These factors include Governmental
policies like industrial policy, economic policy, labor policy,
export policy etc.
53

54. FUNCTIONS OF INDUSTRIAL RELATIONS STAFF
1) Administration, including overall organization and coordination
of industrial relation policies and programs.
2) Liaison between outside groups and personnel offices as well as
with various levels of management.
3) Legal, including drafting regulations, rules, law or orders, and
construction and interpretation.
4) Recruitment and employment of employees.
5) Employment testing, including intelligence tests, mechanical
aptitude tests, achievements tests, etc.
6) Placement, including induction and assignment.
7) Training, including apprentices, production workers, foremen
and executives.
8) Performance report or merit rating.
9) Medical and health services.
10) Safety service, including first aid training.
11) Group activities such as group heath insurance, housing,
cafeteria programs and social clubs.
12) Suggestion plans and their use in labor management production
committees.
13) Public relations.
14) Employee record for all purposes.
15) Benefit, retirement, and pension programs.
54

55. GRIEVANCE PROCEDURE
Grievances is “any discontent or dissatisfaction, whether expressed
or not, whether valid or not, arising out of anything connected with
the company which employee thinks, believes or, even feels to be
unfair, unjust or inequitable.”
Causes:
· Economic: Wage fixation, overtime, bonus, wage revision,
etc. employees may feel that they are paid less when
compared to others.
· Work environment: Poor physical conditions of workplace,
tight production norms, defective tools and equipment, poor
quality of materials, unfair rules, lack of recognition, etc.
· Supervision: Relates to the attitudes of the supervisor
towards the employee such as perceived notions of bias,
favoritism, nepotism, caste affiliations, regional feelings, etc.
· Work group: Employee is unable to adjust with his
colleagues; suffers from feelings of neglect, victimization
and become an object of ridicule and humiliation, etc.
· Miscellaneous: These include issue relation to certain
violations in respect of promotions, safety methods, transfer,
disciplinary rules, fines, granting leave medical facilities,
etc.
EFFECT:
· On production include:
 Low quality of production.
 Low quality of productivity.
 Increase in wastage in material, spoilage.
 Increase in cost of production per unit.
55

56. · On the employees:
 Increase in rate of absenteeism and turnover.
 Reduces the level of commitment, sincerity and
punctuality.
 Increase the incidence of accidents.
 Reduce the level of employee morale.
· On the manager:
 Strains the superior-subordinate relations.
 Increases the degree of supervision, control and
follow up.
 Increases in indiscipline cases.
 Increase in unrest and thereby machinery to
maintain industrial peace.
DISCOVERY OF GRIEVANCES
· Observation
· Grievance procedure
· Gripe boxes
· Open door policy
· Exit interview
· Opinion surveys
56

57. GRIEVANCE PROCESS
Action taken by management
Employee perceives the action to be inconsistent
with the contract
Employee discusses the situation with union
steward
Employee and union steward discuss the
grievance with employee’s supervisor
Grievance resolved
Grievance is taken to the next level of
management
Grievance resolved
Higher management and human resource
department become involved
Grievance resolved
Arbitration
57

58. COLLECTIVE BARGAINING
Process:
Preparation
Negotiations
Compromise
Settlement
Mediation, Arbitration
Preparation: These process can be divided into component like
understanding the strategic thrust of the company, analyzing the strengths
and weakness of both the company and union, analyzing the
environment, analyzing relevant stakeholder, analyzing history of labor-management
relation.
Negotiation and Compromise: The primary objective of the
negotiation process is to reach an agreement both parties can live with. A
written contract, signed by both parties, which will govern the
employment relationship, should be the objective of both sides. It does
not mean that both parties must be willing to compromise on issues until
a reasonable accommodation is reached. The contract negotiations
process is the actual bargaining that goes on between the two parties to
reach agreement on a contract. It is a more specific aspect of the entire
collective bargaining process.
Settlement: In large organizations the final settlement is the result of a
complex procedure over an extended period of time. Settlement in
smaller companies, on the other hand, is frequently straightforward and
the logical end of the process.
58

59. Mediation and Arbitration: Mediation involves a neutral third party
who tries to break a bargaining impasse. Mediators may be called
upon to get the parties to start negotiating again, clarify points that
have been misunderstood, suggest alternative compromises that
have not occurred to the bargaining parties, and improve trust and
communication. While mediators have no power to enforce a
settlement, they may bring a fresh viewpoint into the process that
can get things moving again.
Arbitration, on the other hand, involves a neutral third party listening to
both sides, evaluating the evidence, and making a binding
recommendation. Arbitration is of two basis types: contract rights
arbitration. Contract rights arbitration consists of settling impasses
in the actual administration of the contract and is usually the
outcome of a grievance procedure that cannot be settled by the
arties. Interest arbitration involves the terms of the contract itself.
While interest arbitration is used in the public sector where strikes
are illegal, it is rarely used in the private sector.
Seven Tips for Successful Collective Bargaining
1. Use the preliminary meetings to set the ground rules for
future sessions. For example, the negotiators might agree up
front that negotiations will take place during normal business
hours and not in all-night marathon sessions.
2. Document carefully all meetings. Include who was there,
what was said, what the intent as behind contract language,
and what proposal and counter proposals were made. At the
end of each day’s session the mote taker can dictate the
outlines of the sessions and have typewritten documents
prepared for review. Missing information or disagreement
can be filled in. this documentation will not only help in the
negotiation process, but it can also help in interpreting the
contract once it is signed.
3. If the company CEO is well regarded by the employees,
consider using him or her in certain negotiating sessions,
particularly the early ones. This helps the CEO understand
the position of the union.
4. Within the bounds of what is legal, establish a
comprehensive file on the in-plant union negotiating
committee. This can be a basis for better participation and
drawing out the union members who are perhaps the most
qualified to speak on a given issue. For instance, if a worker
has been with the company 20 years and a management
59

60. representative believes that the current proposal might not
benefit him, the representative might post a question like.”
Ken, are you aware that the current proposal will give
workers with 20 years seniority only about half the benefits
as those who have been with the company form 5 to 10
years?”
5. Never underestimate the union negotiators abilities. Accept
them as equal peers. A condescending attitude can hurt the
process and may result in management winning an ego battle
and losing the contract war. Many of the union people are
street smart and savvy when it comes to negotiations.
6. Sustain strong communication links with managers and first-line
supervisors after the contract is settled. They are the
ones who actually administer the contract on a day-to-day
basis.
7. If an impasse is reached consider federal mediation. This
demonstrates good faith and a commitment to avoid a bitter
labor dispute.
60

61. PARTICIPATIVE MANAGEMENT
Approaches:
· Power-centered: Worker become involves in decision making at
more than one level of the managerial hierarchy and play an
important role in setting the goals of the enterprises.
· Task-centered: It involves decision relation to the immediate task
or environment of the workers concerned
FORMS OF PARTICIPATION
1. Joint Consultation: Management takes decisions but the
workers’ representatives are allowed to be heard.
2. Joint Decision Making: The representatives of workers
and management are jointly represented in decision making
body.
3. Workers Control : final authority rests with the elected
representatives of workers who formulate policy and employ
managers to carry it out.
OBJECTIVE:
· Promoting the satisfaction and personal development of
an individual worker.
· Improving industrial relations.
· Increasing efficiency.
· Workers participation in decision making.
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62. TRADE UNION
Meaning:
· An association of workers in one or more professions for the
purpose of protecting and advancing the members’ economic
interests in connection with their daily work.
· A continuous long term association of employees formed and
maintained for the specific purpose of advancing and protecting the
interest of the members in their working relationship.
· A union is a continuous association of persons in industry formed
primarily for the purpose of the pursuit of the interests of its
members of the trade they represent.
Why do Workers Join Trade Unions?
· To attain economic security.
· To improve their bargaining power and balance it with that of
management.
· To ventilate the workers’ grievances to the management.
· To inform workers’ views, aims, ideas and dissatisfaction to the
management.
· To secure protection from unexpected economic needs kike illness,
accidents, injury etc.
· To satisfied their social, psychological needs.
· To secure power.
Function:
· Achieving higher wages and better working and living conditions
for the members;
· Acquiring the control of industry by workers;
· Minimizing the helplessness of the individual workers by making
them stand collectively and increasing their resistance power.
· Providing a worker self-confidence and a feeling that he is not
simply a cog in the machine;
· Taking up welfare measures for improving the morale of the
workers;
· To enlarge opportunities for promotion and training;
· To improve working and living condition;
62

63. CASE STUDY
Study the Human Resource Policy of the ONGC
63

64. VISION AND MISSION
To be a world-class Oil and Gas company integrated in energy
business with dominant Indian leadership and global presence.
WORLD CLASS
· Dedicated to excellence by levering competitive advantages in R&D
and technology with involved people.
· Imbibe high standards of business ethics and organizational values.
· Abiding commitment to safety, health and environment to enrich
quality of community life.
· Foster a culture of trust, openers and mutual concern to make working
a stimulating and challenging experience for our people.
· Strive for customer delight through quality products and services.
INTEGARTED IN ENERGY BUSINESS
· Focus on domestic and international oil and gas exploration and
production business opportunities.
· Provide value linkages in other sectors of energy business.
· Create growth opportunities in other sectors of energy business.
DOMINANT INDIAN LEADERSHIP
· Retain dominant position in Indian petroleum sector and enhance
India’s energy availability.
64

65. BOARD OF DIRECTORS
1) Mr. Subir Raha, Chairman & Managing Director
2) Mr. V K Sharma, (Onshore)
3) Mr. Y B Sinha, Director (Exploration), Director (Onshore) –
Add. Charge
4) Mr. R S Sharma, Director (Finance)
5) Mr. Nathu Lal, Director (Tech & Field Services)
6) Dr. A K Balyan, Director (HR)
ORGANIZATION CHART
65

66. PEOPLE AT ONGC
“Not only has India… set up her own machinery for oil exploration
and exploitation... an efficient oil commission has been built where a
large number of bright young men and women had been trained and
they were doing good work.”
- Pandit Jawahar Lal Nehru, India’s first Prime Minister to Lord
Mountbatten, on ONGC (1959).
This is what Pandit Nehru said about ONGC’s strength of managing their
people. Today, ONGC is the flagship company of India; and making this
possible is a dedicated team of nearly 40,000 professional who toil round
the clock. It is this toil which amply reflects in the performance figures
and aspirations of ONGC. The company has adapted progressive policies
in scientific planning, acquisition, utilization, training and motivation of
the team. At ONGC everybody matters, every soul counts.
ONGC has a unique distinction of being a company with in-house service
capabilities in machine all the activity areas of exploration and production
of oil & gas and related oil field services.
Needless to emphasize, this was made possible by the men & women
behind the machine Over 18,000 experienced and technically executives
mostly scientist and engineers from distinguished
Universities/Institutions of India and abroad from the core of our
manpower. They include geologists, geophysicists, geochemist, drilling
engineers, reservoir engineers, petroleum engineers, production
engineers, engineering & technical service providers, financial and
human resource experts, IT professional and so on.
66

67. HR VISION, MISSION & OBJECTIVES
HR VISION
“To attain organizational excellence by developing and inspiring the true
potential of company’s human capital and providing opportunities for
growth, well being and enrichment.”
HR MISSION
“To create a value and knowledge based organization by inculcating a
culture of learning, innovation & team working and aligning business
priorities with aspiration of employees leading to development of an
empowered, responsive and competent human capital.”
HR OBJECTIVES
 To develop and sustain core values
 To develop business leaders for tomorrow
 To provide job contentment through empowerment, accountability and
responsibility
 To built and upgrade competencies through virtual learning,
opportunities for growth and providing challenges in the job
 To foster c climate of creativity, innovation and enthusiasm
 To enhance the quality of life of employees and their family
 To inculcate high understanding of ‘Service’ to a greater cause
HR STRATAGY
 To meet challenging demands of the business environment, focus of
the HR strategy is on change of the employee’s ‘mindset’
 Building quality culture and resources
 Re-engineering and redeployment for maximizing utilization of HR
potential
67

68.  To Build and upgrade competencies through virtual learning,
opportunities for growth and providing challenges in the job
 Re-strengthening mutual faith, trust and respect
 Inculcating a spirit of learning & enjoying challenges
 Developing Human Resource through virtual learning, providing
opportunities for growth, inculcating involvement and exposure to
benchmarking in performance
ROLE OF HR
 Alignment of HR vision corporate vision
 Shift from support group to strategic partner in business operations
 HR as a change agent
 Enhance productivity and performance by developing employee
competency and potential
 Developing professional attitude and approach
 Developing ‘Global Managers’ for tomorrow to ensure the role of
global players
68

69. CAREER
Career Opportunities Oil and Natural Gas Corporation Limited (ONGC)
is a company with a global vision and noble mission. Having a strong
force of over 41,000 dedicated to the common cause of technological
innovation and process of reinventing themselves, it can boast of having
experts in all aspects relevant to the entire of E&P business and even
those within its pale.
Apart from an excellent atmosphere for growth, the company offers a
package of remuneration that compares with the best in the Indian
industry. It includes basic pay and dearness allowance, contributory
provident fund, conveyance maintenance reimbursement, leave fare
assistance/encashment, holiday home facility, medical facilities for self
and dependent, gratuity, self contributory post-retirement scheme,
composite social security scheme and soft loans, etc.
So if you are searching for a company…
 With a noble mission
 Where technology counts
 Where people matter & each individual makes a difference in the
working environment
 Where the company reciprocates
… then ONGC is the place to be at. Expertise Domains ONGC has
various employment opportunities at lower, middle and senior executive
levels in a large number of disciplines for which candidates from the
following streams can apply:
ENGINEERING
 Drilling
 Electrical
 Electronics & Telecommunications
 Instrumentation
 Mechanical
 Production
69

70.  Auto
 Chemical
 Petroleum
 Computer Engineering and Programming
 Civil
 Constructions & Maintenance
GEOSCIENCES
 Chemistry
 Geology
 Geophysics
 Mathematics
 Paleontology
 Reservoir
 Physics
 Physics with Electronics
SUPPORT & ADMINISTRATION
 Finance & Accounts
 Economics & Statistics
 Hindi
 Industrial Engineering
 Industrial Relations
 Legal
 Marketing
 Medical & Paramedical
 Public Relations/Corporate Communications
 Security & Vigilance
 Fire Services
70

71. RECRUITMENT
Specified application form is provided along with each vacancy
notification. Only those applications which are as per the prescribed form
and fulfill eligibility criteria of age, qualification, application fee and are
accompanied with copies and testimonials are accepted. Detailed
instructions for filling up application forms are given in the vacancy
notification.
Materials Management Method Of Recruitment ONGC advertises the
vacancies in the newspapers and displays the same online. Only the
applications specific to the advertisements are entertained which are
received during the time limit stipulated in the vacancy
notification/advertisement. Individual’s applications which are without
reverence to specific vacancy notification are neither entertained nor
replied to.
Terms and Conditions
Broad terms and conditions and general instructions which are
specific to the advertised posts are incorporated in the
advertisements/vacancy notification. Vacancies are notified or advertised
as and when there is manpower requirement for any discipline. The
executives in ONGC are transferable to any of its Projects, Regions,
Institutions and Work centers in India or abroad. Introduction Levels for
Executives.
EXECUTIVE LEVEL PRESENT PAY
SCALE
ANNUAL
EMOLUMENTS
(APPROXIMATE)
LEVEL – ONE
(e.g. Assistant Executive
Engg./P&A officer etc.)
Rs. 12,000 – 17,500/- Rs. 2,50,000
LEVEL – FOUR
(e.g. Superintending Engg./
Manager etc.)
Rs. 17,500 – 22,300/- Rs. 3,75,000
LEVEL – SEVEN
(e.g. General manager)
Rs. 20,500 – 26,500/- Rs. 4,50,000
Career growth the existing promotion scheme for executives in ONGC is
follows, however the outstanding candidates may get merit promotions a
year in advance depending upon merit and availability of vacancies.
71

72. LEVEL EXPERIENCE
REQUIRED
FOR NEXT
PROMOTION
EXISTING PAY SCALE
(PREREVISED)
E1 TO E2 4 years E2 Rs. 13,750 – 18,700
E2 TO E3 5 years E3 Rs. 16,000 – 20,800
E3 TO E4 4 years E4 Rs. 19,500 – 22,300
E4 TO E5 &
3 years E5 Rs. 18,500 – 23,900
SUCCESSIVELY
E6 Rs. 19,500 – 25,600
HIGHER LEVELS
E7 Rs. 20,500 – 26,500
(SELECTION ON
E8 Rs. 20,500 – 26,500
MERIT) Subject to the
E9 Rs. 23,750 – 28,550
number of available
vacancies.
OIL & GAS NATURAL GAS CIPRORATION LTD.
R&P DIVISION, TEL BHAVAN, DEHRADUN
72

73. TRAINING AND DEVELOPMENT
An integral part of ONGC’s employee-centered policies is its thrust on
their knowledge up gradation and development. The Institute of
Management Development, which has an ISO 9001 certification, along
with 7 other training institutes, play a key role in keeping their workforce
at pace with global standards
The Institute of Management Development is the premier nodal agency
responsible for developing the human resource of ONGC. It also focuses
on marketing its HRD expertise in the field of Exploration & Production
of Hydrocarbons. ONGC’s Sports Promotion Board, the Apex body, has
a Comprehensive Sports Policy through which top honors in sports at
national and international levels have been achieved.
ONGC Academy
ONGC Academy is located in the lush green environment of the
Himalayas at Dehra Dun. Known previously as Institute of Management
Development (IMD), it was formally re-christened as ONGC Academy
on November 2, 2003 by C&MD Mr. Subir Raha. It is ONGC's premier
nodal agency for training and developing human resources. The Institute
emerged out of SWOT analysis carried out by the organization in 1982.
Designing parameters for measuring performance of human resources,
succession planning, mapping of individual relations scenario, work
climate and work culture analysis and managing change are some of the
areas of research related to management development. To serve this
purpose, the Academy is committed to excellence in the cause of HRD
and of the availability of appropriate systems and procedures with a view
to ensure managerial effectiveness, quality and productivity in E&P
Sector. ONGC Academy is also responsible for coordinating
training/seminars for ONGC executives abroad.
The academy has acquired ISO-9001 certificate through implementation
of quality assurance system.
73

74. FACULTY
ONGC Academy has an experienced core and visiting external faculty
from in-house, industry and top national institutions who possess
specialization, experience, institutional affiliation and temperament.
PEDAGOGY
The Pedagogy is interactive and participative and the methods include
lectures, cases, seminars, group discussions, business games, role plays,
simulation exercises, structured and unstructured group work and field
visits. Functional areas are discussed in the context of opportunities for
internationalizing business and enhancing the organizations
responsiveness to the rapidly changing technology and market forces in
the emerging global scenario. Eminent academicians, policy makers and
senior executives deliver extensive lectures to the faculty and the
participants.
CURRICULUM
Training Programmes are as per the specific requirements catering to the
fresh graduate trainees, middle and senior level corporate executives.
Refresher, awareness and exposure courses in the field of geo-science,
production, and reservoir engineering, emerging technologies and
managerial aspects for the national international oil companies are
conducted regularly. Program on joint ventures, negotiations, price-risk
analysis, cost reduction, advanced petroleum management etc. are added
features of the training curriculum.
INFRASTRUCTURE
· Well equipped air-conditioned auditorium, with a capacity of 220
for seminars and conferences
· Lecture halls with audiovisual systems
74

75. · Air-conditioned hall for conducting video sessions on wide
screen video displays
· Library with a vast collection of books related to the oil industry
and latest managerial subjects
· A fully equipped computer centre with a host of PCs connected
through LAN
· Excellent cut models of diesel engine, motor and simulators as
training aids
· Physical training and yoga, squash, badminton, tennis, billiards and
table tennis
· Medical facilities
· Furnished hostel accommodation for 160 participants and a VIP
Guest house
ALLIANCES
· Formal alliances with reputed organizations and Institutions like
ASCI, Hyderabad, MDI (Management Development Institute),
Gurgaon, IMI, New Delhi, ICWAI, New Delhi, Andhra University,
Roorkee University, and the Indian School of Mines, Dhanbad
have helped the Institute to provide quality dissemination of
knowledge. The R&D wing of ONGC Academy is continuously
engaged in updating strategic HRD plans to improve productivity,
efficiency and effectiveness of ONGC executives.
THRUST AREAS
Development of core faculty in new areas
· Marketing HRD expertise to E&P industry Trainings oriented
to :
 Organizational restructuring and transformation
 Information technology
 Business process re-engineering
 Hi-tech exploration techniques
 Enhanced oil recovery
 Cost estimation and cost control
 Diversification and marketing of training services
 Training of trainers
 Generation of ONGC related case studies
75

76. CONCLUSION
ONGC has undertaken an organization transformation exercise in which
HR has taken a lead role as a change agent by evolving a communication
strategy to ensure involvement and participation among employees in
various work centers. Exclusive workshops and
interactions/brainstorming sessions are organized to facilitate
involvement of employees in the project.
Policies and policy makers at ONGC have always had the interests of
large and multi-disciplined workforce at heart and have been aware
of the nuances and significance of cordial Industrial relations. By
enabling workers to participate in management, they are provided
with an informative, consultative, associate and administrative forum
for interactive participation and for fostering innovative culture.
In fact, ONGC has been one of the very few organizations where this
method has been implemented. It has had a positive impact on the overall
operations since it has led to enhanced efficiency and productivity and
reduced wastages and costs.
76

77. BIBLIOGRAPHY
· Handbook for writers and editors - S. Rao
· Human Resource and Personnel Management – K. Aswathappa
· Managing People - V.S.P. Rao
· Human Resource Management - Decenzo
· Human Resource Management – Dessler
· Essentials of Human Resource Management & Industrial relation –
P Subba Rao
· Human Resource Management – Robbert L. Mathis
John H. Jackson
· www.punyam.com
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