HUMAN RESOURCE MANAGEMENT

Transcription

1 HUMAN RESOURCE MANAGEMENT 1. Definition HRM deals with the people dimension in management. According to Byars and Rue, Human Resource Management encompasses those activities designed to provide for and coordinate the human resources of an organization. According to Ivancevinch and Gulick, Personnel / Human resource management is the function performed in organizations that facilitate the most effective use of people (employees) to achieve organizational and individual goals. 2. Scope of HRM The scope of HRM is vast. All major activities in the working life of the employee from the time of his entry into the organization until he leaves, retires come under the purview of HRM. The most important activities undertaken are: Planning, job design, job analysis, procurement, recruitment, selection, induction, placement, training and development Compensation, rewards, benefits, retrial benefits, medical and, healthcare facilities. 3. HRD Process HRD is the process of training and developing employees to improve and update their knowledge and skills, so as to help them perform their jobs better. The process also includes developing the attitudes, beliefs and values of the employees to match the organizational needs. HRD is a continuous process and should take into consideration both present and future needs. HRD includes performance appraisal, training, management development & career planning and development. Role of HR department in an organization as a Specialist Facilitator Change agent Controller 4. Emerging Role of HRM In the changing times, it has become evident that it is the human resources of an organization of a country that can lead it on to the path of success. The human resources of a country play a vital role in determining its progress and prosperity. Even a national with rich in its human resources can develop fast and a developed nation enriches the quality of its human resources. This is cyclic process. 5. Human resources: A competitive advantage Business has become knowledge based, service oriented, competitive and more dynamic in this new age. According to Adi Godrej, chairman and MD, Godrej Consumer Products Ltd. All corporate strengths are dependent on people. Human resources of an organization is an unique asset to the organization and is essential for a business to gain competitive advantage over its competitors. Challenges to HR Professionals: Worker productivity Quality improvement The impact of the government Quality of work Technology and training 6. Human Resource Planning Coleman has defined HRP or manpower planning as the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization. According to Wickstrom, human resource planning consists of a series of activities, viz. forecasting future manpower requirements. Making an inventory of present manpower resources and assessing the extent to which these resources are employed optimally. Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy, both quantitatively and qualitatively. Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 1

2 Planning the necessary programmes of development, selection, training, development, transfer, promotion, motivation, compensation etc. 7. Objectivities of HRP To maintain the required quantity and quality of HR To forecast the turnover / attrition rates To plan to meet organizational HR needs for expansion and diversification To foresee the effects of technological changes on the requirement for HR To develop the existing HR to match the HR requirements of the future To optimize staffing in the organization To make contingent plans to handle sudden requirements and situations of shortfall To utilize HR effectively and efficiently To estimate the value of HR and their contribution to the organization. 8. HRP at Different Planning Levels Corporate level planning Operational Planning Intermediate level planning Planning short term activities 9. Methods of Dealing with surplus Manpower Retrenchment Lay offs Work sharing Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 2

3 Early /voluntary retirement Outplacement Leave of absence without pay Reduced working hours Attrition 10. Job Analysis Job Analysis is the process of determining and recording all the pertinent information about a specific job, including The tasks involved The knowledge and skill set required to perform the job The responsibilities attached to the job and The abilities required to perform the job successfully Process of job analysis Information gathering Job Specific competency determination Job analysis: Area of Application TECHNIQUES OF JOB ANALYSIS DATA Personal observation Sending out questionnaires Maintenance of log records and Conducting personal interviews 11. Job Description The most common and product of a job analysis is a documented job description. It is an important document which is basically descriptive in nature and contains a statement of job analysis. It provides both organizational information and functional information. The job description describes in detail the various the responsibilities of the job. It also describes the setting and work environment of the job. CONTENTS OF JOB DESCRIBITION Job identification, organizational position of the job. Job Summary Job duties and responsibilities Relation to other jobs Supervision Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 3

4 Machine, tools and equipment Working conditions Hazards involved 12. Job Specification The job specification takes the job description and answers the questions. Job specifications translate the job description into terms of the human qualifications which are required for a successful performance of a job. It is a qualifications, knowledge, skills, traits, and physical and mental characteristics that no incumbent must possess to perform the job successfully. Job design determines the responsibility of an employee, the authority he enjoys over his work, the scope of decision making, and eventually, his level of satisfaction and productivity. A personnel manual contains the philosophy of the organization various policies, objectivities, practices and procedures, programmers, the responsibilities of different individuals in the organization, also contain the work flow chart, initiation, implementation and approving authorities. Each and every aspect related to an employee is contained in a personnel manual. 13. Recruitment and Selection Byars and Rue define recruitment as the process of seeking and attracting a pool of people from which qualifies candidate for job vacancies can be chosen. According to Edwin B. Flippo, Requirement is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. In short, selecting right person for a right job. FACTORS AFFECTING RECRUITMENT Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 4

5 INTERNAL FACTORS Recruiting policy of the organization Human resource planning strategy of the company Size of the organization and the number of employees employed Cost involved in recruiting employees and finally Expansion plans of the organization EXTERNAL FACTORS Supply and demand of specific skills in the labor market Political and legal considerations such as reservation of jobs Company s image perception of the job seekers about the company. A good recruitment policy must contain the following elements. Organization s objectivities Identification of recruitment needs to take decisions regarding the balance of qualitative dimensions. Preferred sources of recruitments. Criteria of selection and preferences. The cost of recruitment and financial implications of the same. Source of Recruitment Different sources of recruitment can the employed; depending on various factors like the level of the position, number of people required, time available and the funds allocated for recruitment. Internal sources Within the organization: Transfer, promotion, demotion, extra responsibility offer etc. External Sources Advertisements Employee referrals Employment agencies (public and private) Campus recruitments Interested applicants (unsolicited applications) Voluntary organizations / social organizations Schools, colleges, professional institutions Indoctrination seminars Casual labour Computer data banks BPO (Business Process Out sourcing) 14. Selection The process of choosing the most suitable candidate for a job from among the available applicants is called selection. It is the process of ascertaining the qualifications, experience, skill, knowledge etc. of an applicant with the purpose to determine the suitability for a job. Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 5

6 The selection process The selection process in an organization depends on the organization strategy and objectives, the tasks and responsibilities of the job, the qualifications, experience and characteristics required in an individual to perform those tasks and responsibilities successfully. These elements of selection and their interrelationship are explained in figure. Organization Job design, job description Job Specifications Competency modeling Selection Recruitment policy Organizations Objectivities determine the recruitment policy and the job design. Job description and job specifications are arrived at, based on the job analysis. The next step is Competency modeling, which is a relatively new concept helps in identifying the knowledge, skill and attitude set that enables the individual to deliver the best performance in his job. Steps in Selection Procedure Reception or preliminary interview or screening Application Blank A well conducted interview to explore the facts and the attitudes of the applicant and his family to the job. A physical examination health and stamina are vital factors in success. Physiological testing A reference check. Final selection (Approved by Manager) Selection Test: Different types of test are used as selection methods to evaluate an applicant. Intelligence tests Aptitude tests Achievement tests Situational tests Personality tests Polygraph tests Graphology Interest tests Interview A selection or core interview is normally the interaction between the job applicant and the line manger or experts where the applicant s job knowledge, skills, talent etc. are evaluated and ascertained. Formal and structured interview Unstructured interview Stress interview Panel interview In-depth interview Decision making interview Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 6

7 15. Performance Appraisal The performance appraisal can be defined as the process of evaluation for the purpose of rewarding or developing the employee. According to Michael Armstrong, Performance appraisal is a formal assessment and rating of individuals by their managers at usually an annual review meeting. Performance can be defined as the degree of accomplishment of tasks by an employee in his job. Performance appraisal methods Management by objectives or goal setting Graphic rating scale Work incident method Forced choice rating method Point allocation method Raking methods Checklist Behaviorally Anchored Rating Scales (BARS) 360 performance appraisal Team Appraisal Balanced scorecard method According to Mc Gregor: Formal performance appraisal plains are designed to meet three needs, one of the organization and the other two of the individual, namely: It provides systematic judgments to backup salary increases, transfers, demotions or terminations. It provide feedback to subordinate how he is doing and suggest needed changes in his behavior attitudes, skills, or job knowledge. These plans let him know where he stands with the boss. It is used as a base for coaching and counseling the individual by the superior. Pitfalls in Performance Appraisal Halo effect Leniency effect Stringency effect Recency effect Primary effect Central tendency effect Culture Stereotyping Perceptual set Fundamental attribution error Benefits of Performance Appraisal Apart from evaluating the performance of the employees for rewards / punishments and development, an effective performance appraisal system has many benefits. Training and development needs of the employees can be determined Organizational effectiveness can be improved by improving the individual performance of the employees. The performance appraisal system forms the basis for compensation management in the organization, in addition to other methods like market surveys. The performance appraisal can be used as basis for transfers, promotions and other career planning activities of individual employees. An effective performance appraisal system also helps in succession planning in the organization. Cross functional transfers and job enrichment exercises et., can be taken up, based on inputs from the appraisal system. Human resources of the firm can be evaluated based on the competency and skill set and potential of the workforce. This provides the base for human resource planning. An assessment of the value of the human resource helps in organizational planning. The performance appraisal system also helps in evaluating and auditing the existing plans, processes and systems in the organization. 16. Training and management development Training is a process of learning and a sequence of programmed behaviour. It is application of knowledge. It gives people an awareness of the rules and procedures to guide their behavior. It attempts to improve their performance on the current job or prepare them for an intended job. Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 7

8 Development is a related process, it covers not only those activities which improve job performance but also those which bring about growth of the personality; help individuals in the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better men and women. Training a person for a higher job is development. Michael Armstrong, defines training as the the systematic development of the knowledge, skills and attitudes required by an individual to perform adequately given task or job. According to Edwin B Flippo, training is the act of increasing knowledge and skill of an employee for doing a particular job. Objectivities of Training: Improving employee s performance Updating employee s skills Avoiding managerial obsolescence Preparing for promotion and managerial succession Retaining and motivating employees Creating an efficient and effective organization Assessing Training Needs: Before an organization lays out the plan for training, it needs to anlayse. The training needs can be assessed by: Determining the organizational Prioritizing the tasks in meeting these goals Determining the skills required by the employees Identifying deficiencies in the skill and knowledge levels of employees. Employee s Training Methods: A number of factors determine the choice of training methods Organizational culture Learning principles Content of the program Time factor Cost effectiveness Appropriateness of the facilities Employee preferences and capabilities. Trainer preferences and capabilities On the Job Training: Job instruction training Apprentices and coaching Job rotation Committee assignment Off the Job Training: Classroom lectures and conferences (demonstration and examples) Simulation exercises (case exercises, experimental exercises, computer modeling, vestibule training, and role playing) programmed instructions. Classroom Lectures Simulation Exercises Programmed Instructions Case Method Experimental Exercises Computer Modeling Vestibule Training Role Playing Off the Job Training Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 8

9 The factors that can be used to evaluate a training program are: Trainees feedback on the content and process of training. Knowledge or learning acquired by the trainees as a result of the training experience. Changes in job performance of behaviour as a result of training. Measurable improvements or results seen in individuals or the organization like lower turnover, decreased absenteeism or fewer accidents. Setting Evaluation Criteria Assessing the Knowledge prior to training Trained or developed Workers Assessing the Knowledge after training Transfer to the Job Follow-up Steps in the Evaluation of Training Management Development is any attempt to improve managerial performance by imparting knowledge, changing attitudes or increasing skills. The main objectives of management development programs are: Improving the performance of the managers. Enabling the senior managers to have an overall perspective about the organization and also equipping them with the necessary skills to coordinate the various units of the organization. Identifying employees with executive talent and developing them so that they can occupy managerial positions in the future. Motivating the managers to perform more effectively in accordance with the organizational goals. Updating managers from time to time about the latest changes and developments in their respective fields. Improving the analytical and logical skills of employees. Providing insights into conceptual issues relating to economic, technical and social areas. Improving human relations skills and encouraging creative thinking. On-the-job methods Off-the-job methods Simulation Exrcise Transactional Analysis Sensitivity Training Conferences Lectures Coaching Job Rotation Under study assignments Multiple Management The case Incident Role Play In-basket Business method method Exercise games Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 9

10 17. Compensation Management Job Evaluation is a systematic process of analyzing and evaluating jobs to determine the relative worth of each job in an organization. Objectives: To determine the position and place of a job in the organizational hierarchy. To clarify the responsibility and authority associated with each job. To manage internal and external consistency in the compensations. To maintain complete and accurate data relating to job description and job specification of various jobs. Principles Governing Compensation Administration: Maintaining equity in the distribution of wages and salaries in the organization. Maintaining competitiveness in the wage market, in comparison to other players in the industry. Matching employee explanations. Reinforcing positive employee behavior and contribution to the organization. Eliminating any discrepancies in wages administration in the organization. Optimization of management and employee interests. Maintaining good industrial relations and harmony with respect to compensation. Purpose of Wage and Salary Administration: Attracting talented resources Retaining and motivating employees Financial management Legal requirements Concepts of Different Wages: Minimum Wages: It is the amount of remuneration, which is just sufficient to enable an average worker to fulfill all his obligations. It is fixed by the government and enforced by the law with respect to all the scheduled employments, and is revised at least once in five years based on the consumer price index. Fair Wages: Workers performing work of equal skill, difficulty should receive equal or fair wages. Fair wages should also take into consideration the financial capacity of the employer. In India, the Fair Wages Committee has recommended that a fair wage should be less the minimum wage. Living Wages: The first Central Pay Commission introduced the new principle of living wage for Government employees. The Fair Wages Committee observed Living Wages should provide for employee and his family, the bare essentials of food, clothing and shelter, but also a measure of frugal comfort including education for the children, protection against ill-health, requirements of essential social needs and a more important misfortunes including old age. Basic Wage Plans: Time wage plan: Under this plan employees are paid for the period of time for which they have been employed. Piece wage plan: Under this plan employees are paid for the work done. In practice these two methods are used together to gain the maximum benefit. Skill based Pay: Employees are compensated for their job-related skills. This is also called knowledge based pay. Competency based pay: Competency can be defined as the knowledge, skill and behavior of an individual that contribute to a worker s performance. The employee is compensated for these competencies that he/she brings to the job. Broad Banding: It is a base-pay technique, reduces the number of salary levels into broad salary Band. The Bands normally have a fixed minimum and maximum, which overlap with other bands. The major advantage is that it gives managers a free hand to fix the pay of individual workers, but within set limits. Variable compensation: These programs are designed to pay employees in accordance with their performance and not in accordance with their position in the organizational hierarchy. 18. Concept of Rewards: Organizational rewards are those that the employee earns as a result of his employment with the organization. It is linked to employee performance and commitment to the organization. Rewards can be both extrinsic and intrinsic. Extrinsic are tangible in nature and are normally under the canal of the organization. e.g. Promotion, bonus etc. Intrinsic rewards are intangible in nature and are internal to the individual. e.g. Challenging assignment of informal recognition, rewards can also be financial or non-financial. Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 10

11 Incentives are the rewards to an employee, over and above his base wage or salary in recognition of his performance and contribution. They can be termed as performance based rewards. e.g. annual performance incentives monetary), and ESOP (Employee Stock Option Plans). An employee receives for his employment and position in the organization. Scholarships for employee s children, reimbursement of medical expenses, paid vacation etc. the base salary, the incentives and the benefits puts together constitute the total compensation of an employee. Incentive wage plans: Monetary and non-monetary. Monetary Incentive Plan: Short terms plans: Halsey plan, Rowan plan, Barth system of wages, Task bonus system, point rating system, progressive bonus. Long term plans: Annual bonus, Profit sharing (Distribution plan, deferred plan, combination plan), Gain sharing, Employee stocks plans. Recognition of employee contribution a challenging assignment, giving additional responsibility, rewarding an employee for his performance through gifts or free vacations, awards in the form of incentive, for exceptional performance. In Profit sharing incentive method, employees earn a share of the company s profit, which is normally calculated as a percentage of the total profit. Walt Disney was the first company to employ this method. 19. Discipline: According to Nirmal Singh, Discipline is employees self-control which prompts him to willingly co-operate with the organizational standards, rules, objectives, etc. Employees should adhere to the rules and regulations laid out by the organization to ensure order and discipline. An employee is subject to disciplinary action when he fails to meet some obligations towards his job or the organization. Misconduct or an act of undiscipline impairs the organization, tarnishes its reputation and leads to employee unrest. It leads to disciplinary problems like: Minor infractions are acts of misconduct that cause very little harm but if neglected, can accumulate and result in serious problems for the organization. e.g. Coming late to work, negligence etc. Major infractions interfere with the orderly operation of the organization and affect the morale of the employees, e.g. Cheating, stealing, violating safety regulations etc. Intolerable offences are those that can cause serious harm and damage to the organization, e.g. use of drugs/alcohol while at work, smoking, creating conflicting situation etc. Disciplinary Action and Grievance Handling are the basic acts of misconduct or indiscipline in an organization can be categorized as follows: Attendance On-the-Job Behavior Dishonesty Activities that are harmful or the organization. Causes of Indiscipline and Misconduct: Indiscipline relates to disorderliness at work and non-conformity to the prescribed rules and regulations of the management. Some of the causes of indiscipline are When an employee has to perform a job that does not suit his qualifications, experience or aptitude it can lead to frustration and delimitation or irregular attendance, tardiness at work etc. Strained relationship with the supervisor or with colleagues can force an employee to indulge in acts of discipline. Improper or biased evaluation of individuals and their performance can result in demotivated employees, who might resort to misconduct to express their dissatisfaction and distress. An inefficient, ineffective and closed-door grievance redressal procedure in an organization can result in indiscipline of employees who are dejected and frustrated. Loss of trust or confidence in each other, or in the management, can make employees behave in an undisciplined manner. Lack of proper education and upbringing of the workers can also lead to discipline at work. Improper or inconvenient working conditions can lead to acts of indiscipline by workers. Ambiguous working responsibilities, organizational policies and procedures also lead to frustration among employees and result in misconduct. Social and economic pressures or compulsions outside the purview of the organization may also lead to indiscipline and misconduct of employees. Stages in Disciplinary Procedure: Forming and issuing a charge sheet Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 11

12 Considering the explanation Issuing the notice of enquiry Holding a fully fledged enquiry Final order of action Follow up Types of Disciplinary Action: Verbal warning Written warning Suspension Demotion Pay cut Dismissal Grievance Handling A grievance is a sign of an employee s discontent, either with job or the organization. The gap between employees expectation and organization rewards normally leads to grievance. Dale S. Beach defined grievance as dissatisfaction or feeling of injustice in connection with one s employment situation that is brought to the notice of the management. Causes of Grievances: The different factors that can result in employees grievances are: Dissatisfaction of the employee with his compensation or different components of compensation like incentives or benefits Employees disappointment resulting from denial of a promotion or a transfer Unpleasant relationship with supervisor/s and other colleagues Unhealthy or harmful working conditions Job assignments that do not match employees aptitude or skill Lack of adequate resources to achieve objectives of the job Denial of leave, overtime or other benefits Need for a Grievance Redressal Procedure: If an employee has no means f expressing his dissatisfaction, he will get frustrated and this would affect his performance. If he chooses to share his grievances with his colleagues, it could lead to unpleasantness and an unhealthy work environment. It may even lead to industrial unrest. If the settlement of the grievance at the first (Supervisor) level does not satisfy the employee, he can approach the next level. The employee is given more than one opportunity in an effective redressal procedure. Grievance procedures help in upward communication. Employees are free to express their discontentment, problems or frustrations to the top management. By this, the top management becomes increasingly aware of the problems of the employees. A good grievance redressal system helps to maintain harmonious industrial conflicts and it helps the management to win the trust and confidence of the employees. Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 12

13 Voluntary Arbitration VI stage Settlement within 7 days N.S. N.S. N.S. Committee of Union and Management Representatives Manager Grievance Committee V stage management s decision on revision within 7 days IV stage Decision within 7 days III stage Decision within 7 days N.S. Departmental Representatives Departmental Representatives II stage Decision within 3 days I stage Response within 48 hours N.S. N.S. Head of the Department Supervisor Foreman Grievant Employee Conveys Verbally Conflict Resolution Grievances result in conflicts if there is incompatibility in the goals and expectation of the management, with employees and the union. For an organization, to work smoothly and effectively, there is a need for goal congruence and expectation match with the organization and employers. When this spirit is absent, a grievance arises. If it is not resolved immediately, can hamper the work process in the organization, by leading to conflict. Although conflict is dealt with in different ways, there are seven primary ways to respond to it. There are Avoidance: People who hate confrontations that might lead to anger, scrcasm, rejection, and unpleasantness adopt this strategy. They try to withdraw from the situation rather than to face it. Accommodating: These peoples suppress their own needs, opinions, and feelings, sacrificing their own interests, in order to resolve the conflict in an amicable manner. Win/Lose: At the other end of the spectrum are those who see conflict as a competition in which there has to be a winner and a loser. They force their interests and ideas onto others, often using force or compulsion, bribery or punishment. Arbitration: An outside party is involved to resolve the conflict in an unbiased and objective manner. In the absence of an arbitrator, both the parties might try for a settlement that suits their interests better. In the case of arbitration, the decision of the arbitrator is final. Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 13

14 Mediation: An outside party mediates and helps the two parties reach conciliation. The mediation party steers the two disputing parties towards a mutually acceptable settlement and does not pass judgment. Compromising: Both the parties meet halfway in order to reach an agreement. That is, each party makes a few compromises to reach a commonly acceptable settlement. In some cases however, this might lead to problems in the future as each party might lead to problems in the future as each party might feel that it has compromised more than the other. 22. Trade Unions Trade unions play an important role in industrial relations. They are groups of worker representatives who fight for the betterment of the workers. The trade union movement in India started from According t Date Yoder a trade union is a continuing 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. The Indian Trade Unions Act of 1926 (section 2 (B)) defines a trade union as any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen or between employers and employers or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions Workers join trade union for various reasons Formation of trade unions is largely a result of worker s desire to protect their economic interests in an organization. Trade unions negotiate with the management and improve the working conditions of the workers at the organizational level or industry level. 23. Industrial Relations The international Labour Organization (ILO) stated that Industrial relations deal with either the relationship between the state and employers and workers organization or the relations between the occupational organizations themselves. Industrial relations is an outcome of employer- employee relationship in an organization by setting a framework for the management and the employees. Industrial relations is based on mutual compromise and adjustment for the benefit of both the parties involved. The state and the legal system also have a role to play in the maintenance of a conflict free industrial environment. Objectives of industrial Relations: To safeguard the interests of the labour and the management by preventing one of the players from getting a strong hold over the other. To develop and secure mutual understanding and god relationships among all the players in the industrial set up. TO maintain industrial peace and harmony by preventing industrial conflicts. To improve the standard of living of the average worker by providing basic and standard amenities. To increase productivity by minimizing industrial conflicts and maintaining harmonious industrial relations. To ensure discipline in the organization and in the industry. To provide a basic framework for the management and the employees to resolve their differences. To improve the bargaining capacity of the workers through trade unions. Industrial Disputes Prevention Machinery : Means of preventing industrial disputes are : Worker participation Employees grievances redressal machinery Voluntary arbitration Conciliation Court of Enquiry Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 14

15 Tripartite bodies Adjudication 24. Collective Bargaining According to j. h.richardson, Collective bargaining takes place when a number of people enter into a negotiation as a bargaining unit with an employer or group of employees with the object of reaching an agreement on the conditions of the employment of the working people. Effectively collective bargaining is a managerial tool that facilitates an amicable and mutually acceptable agreement between the management and the employees to solve all employment related problems. Objectives of collective Bargaining To provide an opportunity to the workers to voice their problems on issues related to employment To facilitate reaching a solution that is acceptable to all the parties involved To resolve all conflicts and disputes in a mutually agreeable manner. To prevent any conflicts/disputes in the future through mutually signed contracts To develop a conducive atmosphere for fostering a good industrial relations. To resolve issue through third party (government) involvement in case of conflicting interests of the parties involved To provide stable and peaceful industrial relations in the organization To enhance the productivity of the organization by preventing strikes, lockouts etc. Process: Preparation for negotiation Negotiation Contract administration Levels of workers participations : Informative participation Consultative participation Associative participation Administrative participation Decisive participation APPENDIX 1. The Trade Union Act, 1926 The Trade Union Act, passed in 1926, was brought into operation from June 1, It was amended in 1947, 1960, 1962 and The act was mainly enacted to provide for the registration of the trade unions and verification of their membership so as to help them acquire a legal and corporate status. To summarize, the main provisions of the Act are: Registration of the trade unions Cancellation of the registration of the trade unions and appeals Re-registration of the trade unions Duties and liabilities of a registered trade union Rights and privileges of a registered trade union Amalgamation and dissolution of a trade union Submissions of returns Power to make regulations Penalties and procedures 2. The Industrial Disputes Act, 1947 The Industrial Disputes act, 1947 came into effect from April 1, It provides the basic rules and procedures for resolving industrial disputes in the country even today, after subsequent relevant amendments. The main objectives of the Act are: To promote measures for securing and preserving amity and good relations between the management and the workers. To provide a suitable machinery for investigation and settlement of industrial disputes between employers and employees, between employers and workmen, or between workmen and workmen. Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 15

16 To provide the workers with a right of representation by a registered trade union or by an association of employees To give workmen, the right of collective bargaining. To promote conciliation of disputes To get the dispute settled through adjudicatory authorities, if the two parties fail to resolve their dispute To prevent illegal strikes and lockouts To provide relief to workmen in matters of lay-offs, retrenchment, dismissals and victimization. 3. The Factories Act, 1948 The Factories Act, 1948 came into force on April 1, The act provides for the regulation of the employment of labour in factories. The objective of the Act is to secure, health, safety, welfare, proper working hours, leave and other benefits for workers employed in factories. The main provisions of the Act are: Regulate the working conditions of labour in factories Ensure basic minimum requirements for the safety, health and welfare of workers Enforce compulsory approval, licensing and registration of factories to regulate the establishment growth of factories Provide guidelines on the health measures, safety measures and welfare measure to be taken by the management Regulate the working hours of employers to provide for adequate rest Regulate the employment of women and young persons Provide guidelines to the management for employee benefits like annual leave provision Provide guidelines to prevent and deal with accidents or occupational diseases and also for handling dangerous operations 4. The Employee State Insurance Act The Employees Sate Insurance Act, provides for certain benefits to employees in case of sickness, maternity or any injury. It is the responsibility of the employer to ensure that both the employer and the employee contribute to E.S.I. (Employee State Insurance) Account at the end of each wage period. As per the Act, the employer has certain obligations towards the employees and also towards the Employee State Insurance Corporation. The Act provides the following benefits to the insured employs: Sickness benefit Cash benefit is paid to employee if he falls sick during the benefit period Maternity benefit A periodical cash benefit is payable to an insures woman employee, in case of confinement, miscarriage, medical termination of pregnancy, premature birth of a child, or sickness arising from pregnancy, miscarriage, etc., occurring or expected to occur in a benefit period Disablement Benefit Disablement benefit is payable in the form of cash installments, to an employee who is injured in the course of his employment and is, permanently or temporarily, disabled or contacts and occupational disease. 5. The Workmen s Compensation Act, 1923 The Workmen s Compensation Act, 1923 aims to provide workmen and/or their pendants some relief in case of accents arising out of and in the course of employment and causing either death or disablement of workman. It provides for payment by certain class of employers to their workmen, as compensation for injury caused by the accident. The main provisions of the Act are: Ensure the payment of compensations to an employee injured during the course of employment Provide guidelines to the management and the employees regarding industrial safety Determine the liability of the employer Define and specify the duties of the employer and the employee in case of an accident Provide guidelines in determining and establishing the cause of an accident and responsibility for the same Maintain better safety standards in organizations Employees Entitled to Compensation: Every employee (including those employed through a contractor but excluding casual employees), who is engaged for the purposes of employer s business and who suffers an injury in any accident arising out of an in the course of his employment, shall be entitled for compensation under the Act. Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 16

17 The employer of any establishment covered under this Act, is required to compensate an employee who has suffered an accident arising out of and in the course of his employment, resulting in (i) Death (ii) Permanent total disablement (iii) Permanent partial disablement, or (iv) Temporary disablement whether total or partial, or who has countered an occupational disease. 6. The payment of Bonus Act, 1965 The payment of Bonus Act is the outcome of the recommendations made by the tripartite commission which was set by the GOI way back in The Act was promulgated on May 26, Subsequently it was accepted by the Parliament and accordingly in the year 1965, the payment of the Bonus Act was enacted. The Act was amended in 1968, 1969, 1975, 1976, 1977, 1978, 1980, 1985 and The main objectives of the Act are To impose statutory obligations on the employer of every establishment defined in the Act To pay bonus to all eligible employees working in the establishment To outline the principles of payment of bonus according to the prescribed formula To provide for the payment of minimum and maximum bonus and linking the payment of bonus with the scheme of set-off and seton To provide necessary machinery, to enforce the payment of bonus The payment of bonus, Act, 1965 aims at providing for bonus (linked with profit & productivity) to employees of every establishment wherein 20 or more workmen are employed on any during an accounting year. Every employee receiving salary or wages up to Rs p.m. and engaged in any kind of work, whether skilled, unskilled managerial, supervisory or manual is entitled to bonus for every accounting year if he has worked for at least 30 working days in that year. The minimum bonus, which an employees is required to pay, even if he suffers losses during the accounting year is 8.33% of salary or wages during the accounting year. If an employee has not worked for all the working days in an accounting year, the minimum bonus payable to him for that year shall be proportionally reduced. Bonus should not exceed 20% of the salary or wages of the employees. 7. The Payment of Wages Act, 1936 The payment of wages Act passed in year 1936 was enforced in March, 1937 on the recommendations of the Royal Commission of Labour in India. The objective of the Act was to ensure regular and prompt payment of wages to the workers and to prevent the exploitation of a wage earner by prohibiting arbitrary fines and deductions from his wages. The Act Defines the Term Wage as Any remuneration payable under an award or settlement Any remuneration payable for overtime work, holidays or leave periods And any other remuneration payable under the terms of employment whether it is called a bonus or any other name The main provisions of the Act are: Responsibility of the employer for payment of wages Fixing the wage period Procures for wage payment Payment of wages to discharged workers Permissible deductions from wages Nominations to be made by employees Penalties for contravention of the Act Equal remuneration for men and women Obligations and rights of employers 8. The Minimum wages act, 1948 The Minimum Wages act, 1948 was intended as a measure to prevent exploitation of labour by payment of unduly low wages. It also regulates the working hours and specifies that no employee can be asked to work for more than 9 hours a day without being paid additional wages. The main provisions of the Act are as follow: Fixing wages in certain sectors where there is prevalent labour employment and exploitation Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 17

18 Fixing a minimum time and piece rate according to the occupations and different classes of workers. The minimum wage that is fixed will include a basic rate or wage and special allowance. The act requires the appropriate government to review the minimum wage rates so fixed at an interval of not more than five years. The Governments are empowered to appoint Committees to hold enquiries and advise in fixing the rates of minimum wages. 9. The Payment of Gratuity act, 1972 The Payment of gratuity Act, 1972 was enacted to introduce a scheme for payment of gratuity for certain industrial and commercial establishments. The act came into force from 16 th September As per the Act, Gratuity will be payable to any salary of employee, on the termination of his employment after he has rendered continuous service for not less than five years on his superannuation, or on his retirement or resignation or death or disablement due to death or disease. In case of death, gratuity is payable, even if the employee has not completed five years of service. It is the responsibility of the employer to pay gratuity to the employee, failing which he would be penalized accordingly. HRM OBJECTIVE QUESTIONS 1. Which of the following, the employees of an organization are helped in a continuous, planned way to acquire sharpen capabilities required to perform various functions associated with their present or expected future roles? (a) Human Resource Management (b) Human Resource Development (c) Performance Appraisal (d) None of the above 2. Gnutt Task & Bonus plan are examples of (a) Negative incentive (b) Incentive plan of compensation (c) Part payment (d) All of the above 3. Negative Incentive includes (a) Threat (b) Punitive action (c) Penalty (d) All of the above 4... is the method of industrial regeneration under which an employed undertakes to pay his employees a share in the net profit in addition to their regular wages. (a) Penalty (b) Training (c) Incentive plan (d) Profit sharing 5.. Is a stimulus or a reason for producing action. (a) Salary (b) Wages (c) Incentive (d) Bonus 6. The scope of personnel administration includes (a) HR planning & recruitment (b) Compensation & maintenance (c) Development & training (d) All of the above 7. is/are various non-wage compensation provided to employees in addition to their normal wages or salaries. (a) Bonus (b) Compensation (c) Fringe benefits (d) None of the above 8. Which of the following is not an example of fringe benefit? (a) Housing (b) Payments for time not worked (c) Health (d) Bonus 9. Social needs include (a) Self assertion (b) Social approval (c) Self esteem (d) All of the above 10. Motivation refers to. (a) Initiation & direction (b) Intensity & Persistence of human behavior (c) Both (a) and (b) (d) None of the above 11. Motivation by participation is a/an.. (a) Incentive (b) Type of bonus scheme (c) Technique of motivation (d) None of the above 12. Clearly defined objective is a prerequisite for. (a) Motivation (b) Manpower planning (c) Selection (d) Recruitment 13. The process of systematically analyzing the activities pertaining to each job is (a) Job content (b) Job rotation (c) Job enlargement (d) Job analysis 14. Employee motivation Employee Rewards Employee performance Organizational Performance The diagram denotes Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 18

19 (a) Functions of HRM (b) Scope of HRD (c) OB (d) None of the above 15. Match the column (A) Job Analysis (1) Forecasting HR requirements (B) HRP (2) Attracting prospective candidates (C) Recruitment (3) Analysis of specific Job (D) Selection (4) Choose the right candidate (a) A-3, B-1, C-2, D-4 (b) A-4, B-1, C-2, D-3 (c) A-3, B-2, C-1, D-4 (d) A-4, B-2, C-1, D Introducing a new employee to the organizational, culture, values & beliefs is known as (a) Recruitment (b) Induction (c) Section (d) Training 17. The process of training & developing employees to improve & update their knowledge & skills and to help them to perform their jobs better is called (a) Selection (b) Job specification (c) Human Resource Development (d) Motivation 18. Staffing includes (a) Obtaining & maintaining capable & competent personnel (b) Selecting right personnel (c) Training & Development (d) All of the above 19. HRD includes (a) Performance appraisal (b) Training & development (c) Career planning & Development (d) All of the above refers to identifying one s career goals & formulating plans of reaching them through various means like education, work experience etc. (a) Performance appraisal (b) Career planning & Development (c) Job description (d) Job analysis 21. The principle/s of compensation policy/management is/are (a) Adequate (b) Equitable (c) Fair (d) All of the above 22. What is the job evaluation? (a) Organisation & manpower planning (b) Classifying the job based on its importance (c) Job-re-engineering (d) Review of progress 23. The process of formulating & operating a suitable wage/s salary program is (a) Fringe benefits (b) Promotion policy (c) Compensation (d) Wage & salary administration 24. is the process of evaluating the employee performance of the job in terms of the requirements of the job. (a) Merit Rating (b) Performance Rating (c) Benchmarking (d) Transactional analysis 25. Bonus is primarily a share in the surplus & is directly related to.. (a) Individual s performance (b) Organization s performance (c) Competitors policy (d) None of the above 26. Bonus calculation is governed by (a) The payment of Bonus Act 1965 (b) The Indian Factories Act 1948 (c) Worker s Compensation Act, 1984 (d) Worker s Pension Scheme, deal with the employees in the organizational context as a social group that contributes to the organization. (a) Social relations (b) Employee-employer relations (c) Employee relations (d) All of the above 28. Personnel policy includes (a) Joint consultation (b) Rules & regulations (c) Working conditions (d) Training (e) All of the above 29. Objectives of Human Resource Planning is/are (a) To forecast the turnover / attrition rates(b) To maintain required quantity & quality of HR (c) To develop the existing HR for future need (d) All of the above 30. Corporate level planning includes (a) Formulating strategic plans (b) Training & developing plans (c) Promotion planning (d) All of the above 31.. is the expression to describe the termination of an employee due to his /her job becoming redundant (a) Promotion (b) Resignation (c) Retrenchment (d) Outplacement 32. is the separation of employees from an organisation, due to resignation, retirement etc. (a) Retrenchment (b) Attrition (c) Outplacement (d) None of these 33. Job analysis includes. (a) Collecting information about a specific job (b) Abilities required to perform the job (c) Responsibilities attached to the job (d) All of the above Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 19

20 34. Job specification can be defined as (a) Physical specifications of the job (b) Mental specifications (c) Behavioural specifications (d) All of the above 35. Job analysis helps in.. (a) Employment (b) Training & Development (c) Performance appraisal (d) Promotion & transfer (e) All of the above 36. Match the column (A) Job Enrichment (1) Engineering approach (B) Job Design (2) Flexi time (C) Job Analysis (3) Preventing dissatisfaction (D) Recruitment (4) Employment agencies (a) A-1, B-2, C-3, D-4 (b) A-2, B-1, C-3, D-4 (c) A-1, B-2, C-4, D-3 (d) A-2, B-1, C-4, D Which of the following is/are the method/s of recruitment? (a) Employee referrals (b) Campus recruitment (c) Private Agencies (d) All of the above 38. Staff explosion refers to explosion of people manning the function. This is also known as (a) The Creep effect (b) The Riggrian law (c) The Parkinson law (d) The Graicunas law 39. Which of the following is not a type of selection test? (a) Aptitude test (b) Situational test (c) Personality test (d) Ignorance test 40. help in assessing the candidate and validating the information provided in the application. (a) Training (b) Selection (c) Interviews (d) Meeting 41. The full form of CITU is (a) Centre of Indian Traffic Unit (b) Centre of Indian Trade Union (c) Consideration of Indian Tourist Union (d) None of the above 42. CITU consists of the following union (a) Hind Mazdoor Sabha (HMS) (b) Bharatiya Mazdoor Sangh (c) National Labour Organization (NLO) (d) All of the above (e) None of the above 43. The study of Industrial Psychology is helpful in. (a) Job analysis & enrichment (b) Motivation (c) Job performance (d) All of the above (e) None of the above 44.. is a type of conflict. (a) Community conflict (b) Productivity conflict (c) Distress conflict (d) Job conflict 45. Which of the following is/are key characteristic/s of successful quality improvement programs? (a) Education & Training (b) Employee involvement (c) Establishment of customer driven standards (d) All of the above 46. Choose the correct order of the process of HRP (A) Developing a human resource plan (B) Auditing human resource plan (C) Planning job requirement & job descriptions (D) Deciding goals or objectives (E) Estimating future organisational structure & man power requirements (a) D E B C A (b) A E B C D (c) D C A B E (d) A C B D E 47. Match the column (A) Job Analysis (1) End product of job analysis (B) Job Description (2) Information gathering (C) Job rotation (3) Qualification required (D) Job specification (4) Alternative jobs (a) A-2, B-1, C-4, D-3 (b) A-1, B-2, C-4, D-3 (c) A-2, B-1, C-3, D-4 (d) A-1, B-2, C-3, D is a written statement of the minimum acceptable qualifications to perform the job successfully. (a) Job Analysis (b) Job specification (c) Job enlargement (d) Job rotation 49. and.. together constitute employment. (a) Promotion & transfer (b) Recruitment & selection (c) Selection & training (d) None of the above 50. helps in identifying the knowledge, skill & attitude set that enables the individual to deliver the best performance in his job. (a) Competency modeling (b) Competency mapping (c) Talent Hunt (d) Brain storming 51.. Interview is to test the applicants abilities to perform & deliver under stress. (a) Eustress (b) Stress (c) Clinical (d) Situational Exclusive for IACE Students iacehyd.blogspot.in Ph: /422 Page 20