BBM-Human Resource Management 236

B.B.M.
Second Year Core Paper No.VII
HUMAN RESOURCE MANAGEMENT
BHARATHIAR UNIVERSITY SCHOOL OF DISTANCE EDUCATION COIMBATORE 641 046
B.B.M.-Human Resource Management
CONTENT Page No. UNIT I Lesson-1 Lesson-2 Lesson-3 Lesson-4 Lesson-5 Lesson-6 Lesson-7 Lesson-8 Lesson-9 Lesson-10 Lesson-11 Lesson-12 Lesson-13 Lesson-14 Lesson-15 Lesson-16 Lesson-17 Lesson-18 Lesson-19 Lesson-20 Lesson-21 Lesson-22 Lesson-23 Lesson-24 Lesson-25 Personnel Management Functions of Personnel Department The Role of Personnel Manager Organisation of Personnel Department Personnel Policies, Procedures and Programmes UNIT II Manpower Planning Job Description Job Analysis Recruitment and Selection Training and Development UNIT III Performance Appraisal Job Evaluation and Merit Rating Promotions, Transfers and Demotion Human Relations Punishment UNIT IV Wages and Salary Administration Incentive System Labour Welfare and Social Security Employee Safety Industrial Health and Security UNIT V Industrial Relations Trade Unionism Grievance Handling Collective Bargaining Worker Participation in Management 183 193 203 214 224 131 139 149 162 173 79 87 96 105 117 41 48 53 63 70 7 16 21 26 30
(SYLLABUS)
HUMAN RESOURCE MANAGEMENT
UNIT - I Personnel Management meaning, nature, scope and objective Functions of Personnel Department the Role of Personnel manager Organisation of personnel department Personnel Policies and Procedures. UNIT - II Manpower planning Job description Job analysis Role analysis Job specification Recruitment and Selection Training and Development. UNIT - III Performance appraisal Job evaluation and merit rating Promotion Transfer and demotion Human relations approaches to good human relations Punishment. UNIT - IV Wages and Salary administration Incentive system Labour welfare and Social Security Safety, health and security Retirement benefits to employees. UNIT - V Industrial relations Trade unionism Grievance handling Collective bargaining and Workers participation in management. REFERENCES : 1. Tripathy 2. Bhagoiwal 3. Memoria 4. VSP.Rao - Personnel Management and Industrial Relations - Personnel Management and Industrial Relations - Personnel Management and Industrial Relations - Human Resource Management
UNIT - I
LESSON-1 PERSONNEL MANAGEMENT

Contents 1.0 1.1 1.2 1.3 Aims and Objectives Meaning of Personnel Management Nature of Personnel Management Scope of Personnel Management 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 1.3.7 1.3.8 1.4 Organisational Planning, Development and Task Specialisation Staffing and Employment Training and Development Compensation, Wage and Salary Administration Employee Services and Benefits Employee Records Labour Relations Personnel Research and Personnel Audit
Objectives of Personnel Management
1.0 AIMS AND OBJECTIVES

In this lesson we will be discussing the meaning and the basic concepts of personnel management. Personnel Management has certain characteristics and objectives and that also will be discussed in this section. After going through this lesson, you will be able to: Explain the meaning of personnel management Describe the characteristics of personnel management Describe the scope of personnel management List out the objectives of personnel management
1.1 MEANING OF PERSONNEL MANAGEMENT

Personnel management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished.
Personnel Management is that part of the management function which is primarily concerned with the human relationships within an organisation. Its objective is the maintenance of those relationships on a basis which, by consideration of the well-being of the individual, enables all those engaged in the undertaking to make their maximum personal contribution to the effective working of that undertaking.
1.2 NATURE OF PERSONNEL MANAGEMENT

The basic facts and characteristic of Personnel Management are given below: Personnel Management is concerned with managing people at work. Such people or personnel does not simply refer to rank and file employees or unionized labour but also includes higher personnel and non-unionized labour. In other words, it covers all levels of personnel, including blue-collared employees and white-collared employees. Personnel Management is concerned with employees, both as individuals as well as a group. The aim being-to get better results with their collaboration and active involvement in the organisations activities i.e. it is a function or process or activity aiding and directing workmen and women in maximising their personal contribution. Personnel management is concerned with helping the employees to develop their potentialities and capacities to the maximum possible extent, so that they may derive great satisfaction from their job. This task takes into consideration four basic elements, namely, the capacities, interests, opportunities and personality of the employees. Since recruitment, selection development and utilisation of, and accommodation to people are an integral part of any organised effort, Personnel Management is inherent in all organisations. It is not confined to industry alone: it is equally useful and effective in government departments, military organisations, and non-profit institutions. It is a major part of the general management function and has roots and branches extending throughout and beyond each organisation. Therefore, it is rightly the central pervasive system of all organisations. Personnel management requires a constant alertness and awareness of human relations and their importance in everyday operations. It is of a continuous nature. Personnel management attempts at getting the willing cooperation of the people for the attainment of the desired goals. For work cannot be effectively performed in isolation without the promotion and development of oneness in the group.
Check Your Progress 1. Write the meaning of personnel management.
1.3
SCOPE OF PERSONNEL MANAGEMENT
On the basis of the various functions which the personnel management generally undertakes, the functional areas of personnel management may be set forth as below: Organisational Planning, Development and Task Specialisation Staffing and Employment Training and Development Compensation, Wage and Salary Administration Motivation and Incentives Employee Services and Benefits Employee Records Labour or Industrial Relations Personnel Research and Personnel Audit
1.3.1 Organisational Planning, Development and Task Specialisation Organisational planning is concerned with the division of all the tasks to be performed into manageable and efficient units (departments, divisions or positions) and with providing for their integration. Both differentiation and integration are vital for the achievement of pre-determined goals. Organisational Planning and Development relates to determination of the needs of an organisation in terms of a companys short and long-term objectives, utilization of technology (industrial, engineering, industrial psychology, and mechanical engineering) of production, deciding about the nature of product to be manufactured, keeping in view the external environment and public policy. It involves the planning, development and designing of an organisational structure to achieve organisational goals effectively through the fixing of responsibility and authority of employees. It also involves developing interpersonal relationship through a division of positions, jobs and tasks; the creation of a healthy and fruitful interpersonal relationship; and the formation of a homogeneous, cohesive and effectively interacting in formal group. 1.3.2 Staffing and Employment The staffing process is a flow of events which results in a continuous manning of organisational positions at all levels from the top management to the operative level. This process includes manpower planning, authorization for planning, developing sources of applicants, evaluation of applicants,
employment decisions (selection), offers placement, induction and orientation, transfers, demotions, promotions and separations (retirement, lay-off, discharge, resignation, disability, and death). i) Manpower planning is a process of analysing the present and future vacancies that may occur as a result of retirements. Discharges, transfers, promotions, sick leave, leave of absence, or other reasons and an analysis of present and future expansion or curtailment in the various departments. Plans are then formulated for internal shifts or cut-backs in manpower, for the training and development of present employees, for advertising openings or for recruiting and hiring new personnel with appropriate qualifications. ii) Recruitment is concerned with the process of attracting qualified and competent personnel for different jobs. This includes the identification of existing sources of the labour market, the development of new sources, and the need for attracting a large number of potential applicants so that a good selection may be possible. iii) Selection Process is concerned with the development of selection policies and procedures and the evaluation of potential employees in terms of job specifications. This process includes the development of application blanks, valid and reliable tests, interview techniques, employee referral systems, evaluation and selection of personnel in terms of job specifications, the making up of final recommendations to the line management and the sending of offers and rejection letters. iv) Placement is concerned with the task of placing an employee in a job for which he is best fitted, keeping in view the job requirements, his qualifications and personality needs. v) By Induction and orientation is meant the introduction of an employee to the organisation and the job by giving him all the possible information about the organisations history, objectives, philosophy, policies, future development opportunities, products, goodwill in the market and in the community and by introducing him to other employers with whom and under whom he has to work. vi) Transfer process is concerned with the placement of an employee in a position in which his ability can be best utilised. This is done by developing transfer policies and procedures, counselling employees and line management on transfers and evaluating transfer policies and procedures. vii) Promotion is concerned with rewarding capable employees by putting them in higher positions with more responsibility and higher pay. For this purpose, a fair, just and equitable promotion policy and procedure have to be developed; line managers and employees have to he advised on these policies, which have to be valued to find out whether they have been successful. viii) Separation process is concerned with the severing of relationship with an employee on grounds of resignation, lay-off, death, disability, discharge or retirement. Exit interviews of employees are arranged. Causes of labour turnover are to be analysed and advice is given to the line management on the causes of and reduction in labour turnover.
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A number of devices and sub-systems are used in the systems designs to manage the staffing process. These are: Planning tables and charts, Application blanks, Interviews, Psychological tests, Reference checks, Physical examination, Performance reviews and Exit interviews. 1.3.3 Training and Development It is a complex process and is concerned with increasing the capabilities of individuals and groups so that they may contribute effectively to the attainment of organisational goals. This process includes: i. The determination of training needs of personnel at all levels, skill training, employee counselling and programmes for managerial, professional and employee development Self-initiated developmental activities (formal education), during off-hours (including attendance at school; college/professional institutes): reading and participation in the activities of the community
ii.
Under this area, the training needs of the company are identified, suitable training programmes are developed, operatives and executives are identified for training. Motivation is provided for joining training programmes, the time management is advised in matters of conducing training programmes and the services of specialists are enlisted. The effectiveness of training programmes has to be evaluated by arranging follow-up studies. 1.3.4 Compensation, Wage and Salary Administration It is concerned with the process of compensation directed towards remunerating employees for services rendered and motivating them to attain the desired levels of performance. The components of this process are: i) Job evaluation through which the relative worth of a job is determined. This is done by selecting suitable job evaluation techniques, classifying jobs into various categories, and then determining their relative value in various categories. ii) Wage and salary programme which consists of developing and operating a suitable wage and salary programme taking into consideration certain facts such as the ability of the organisation to pay, the cost of living, the supply and demand conditions in labour market and the wages and salary levels in other firms. For developing a wage and salary programme, wage and salary surveys have to be conducted, wage and salary rates have to be determined and implemented and their effectiveness evaluated. iii) The incentive compensation plan includes nonmonetary incentives which have to be developed, administered and reviewed from time to time with a view to encouraging the efficiency of the employee.
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iv) The performance appraisal is concerned with evaluating employee performance at work in terms of pre-determined norms, standards with a view to developing a sound system of rewards and punishment and identifying employees eligible for promotions. For this purpose, performance appraisal plans, techniques and programmes are chalked out, their implementation evaluated and reports submitted to the concerned authorities. (v) Motivation is concerned with motivating employees by creating conditions in which they may get social and psychological satisfaction. For this purpose, a plan for non-financial incentives (such as recognition. previ1eges, symbols of status) is formulated; a communication system is developed, morale and attitude surveys arc undertaken, the health of human organisation diagnosed and efforts are made to improve human relations in the organisation. The line management has to be advised on the implementation of the plan and on the need, areas and ways and means of improving the morale of employees. 1.3.5 Employee Services and Benefits These are concerned with the process of sustaining and maintaining the work force in an organisation. They include: i) Safety provision inside the workshop. For this purpose, policies, techniques, and procedures for the safety and health of the employees are developed; the line management is advised on the implementation and operation of safety programmes; training has to be given to first line supervisors and workers in safety practices; the causes of accidents have to be investigated and data collected on accidents: and the effectiveness of the safety programmes evaluated periodically. ii) Employee counselling is the process through which employees are given counselling in solving their work problems and their personal problems. The line-management has to be advised on the general nature of the problems which the employees may face from time to time. iii) The medical services include the provision of curative and preventive medical and health improvement facilities for employees. A periodical medical check-up of employees, training in hygienic and preventive measures are undertaken. iv) The recreational and the welfare facilities include entertainment services like film shows, sports and games and housing educational, transport and canteen facilities, free or at subsidised rates. Suitable policies and programmes are framed and efforts are made to administer these services satisfactorily. The effectiveness of such programmes has also to be evaluated.
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v) Fringe benefits and supplementary items are made available to employees in the form of: Old age survivors and disability benefits, unemployment and workmens compensation Pensions, gratuities and such other payments as are agreed upon death benefits, sickness, accident and medical care, insurance, expenses at hospitalization, voluntary retirement benefits Paid rest periods, lunch periods, wash-up time, travel time, get- ready time Payments for the time during which no work is done paid vacation or bonus in lieu of vacation, payment for holidays, paid sick and maternity leave Profit-sharing benefits, contribution to employees provident fund, employees educational expenditure and special wage payments ordered by the courts. These benefits are usually given to employees in order to tempt them to remain in the organization, to provide them social security, and to reduce absenteeism and labour turnover. Policies and programmes for implementing these have to be properly developed.
1.3.6 Employee Records In employee records complete and up-to-date information is maintained about employees, so that these records may be utilized, if need, at the time of making transfers/promotions, giving merit pay or sanctioning leave. Such records include information relating to personal qualifications, special interests, aptitudes, results of tests and interviews, job performance, leave, promotions, rewards and punishments. 1.3.7 Labour Relations By labour relations is meant the maintenance of healthy and peaceful labourmanagement relations so that production work may go on undisturbed. Under this area: i. Grievance handling policy and procedures are developed, after finding out the nature and causes of grievances, and locating the most delicate areas of dissatisfaction. Rules and regulations are framed for the maintenance of discipline in the organisation, and a proper system of reward and punishment is developed. Efforts are made to acquire knowledge of and to observe and comply with, the labour laws of the country and acquaint the line management with the provisions, which are directly concerned with organisation. Collective bargaining has to be developed so that all the disputes may be settled by mutual discussions without recourse to the law court. Such bargaining, negotiating and administering agreements relating to wages, leave, working conditions and employee employer relationship.
ii. iii.
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1.3.8 Personnel Research and Personnel Audit This area is concerned with: i. A systematic inquiry into any aspect of the broad question of how to make more effective an organisations personnel programmes recruitment, selection, development, utilization of and accommodation to human resources ii. Procedures and policies and findings submitted to the top executive iii. Data relating to quality, wages, productivity, grievances, absenteeism, labour turnover, strikes, lock-outs, accidents etc.,- which are collected and supplied to the top management so that it may review, alter or improve existing personnel policies, programmes and procedures iv. Morale and attitude surveys In large organizations some of these functions are performed by persons other than personnel men, but in smaller organisations all these functions are discharged by the personal administrator. Check Your Progress 2. List out the major functional areas of personnel management.
1.4 OBJECTIVES OF PERSONNEL MANAGEMENT

The objectives of personnel administration may be laid down as follows: i. To achieve an effective utilization of human resources in the achievement of organisational goals (which may be the production and distribution of goods and services needed by society). ii. To establish and maintain an adequate organisational structure and a desirable working relationship among all the members of an organisation by dividing of organisation tasks into functions, positions, jobs and by defining clearly the responsibility, accountability, authority for each job and its relation with other jobs/personnel in the organisation. iii. To secure the integration of the individuals and groups with an organisation, by reconciling individual/group with those of an organisation in such a manner that the employees feel a sense of involvement, commitment and loyalty towards it. In the absence of such integration, friction may develop in an organisation which may lead to its
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total failure. Friction produces inefficiency. Friction may result from political aspirations, from difficulties in communication and from faults inherent in a particular organisational structure. The behaviour of individuals and groups in any organisation also involves frictions personal jealousy and rivalries, prejudices and idiosyncrasies, personality conflicts, cliques and factions, favouritism and nepotism. iv. To generate maximum individual/group development within an organisation by offering opportunities for advancement to employees through training and job education, or by effecting transfers or by offering retraining facilities. v. To recognize and satisfy individual needs and group goals by offering an adequate and equitable remuneration, economic and social security in the form of monetary compensation, and protection against such hazards of life as illness, old age, disability, death, unemployment, etc., so that the employees may work willingly and co-operate to achieve an organisations goals. vi. To maintain a high morale and better human relations inside an organisation by sustaining and improving the conditions which have been established so that employees may stick to their jobs for a longer period. Check Your Progress 3. Write any five objectives of Personnel Management.
Let Us Sum Up Personnel Management is that part of the management function which is primarily concerned with the human relationships within organisation.The functions of personnel management pervades in all aspects of organizations. Personnel management has many objectives and primarily they centered on increasing the effectiveness of managing human resources in the organizations. Model Questions 1. 2. Explain the nature of Personnel Management. Describe the scope of Personnel Management.
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LESSON-2 FUNCTIONS OF PERSONNEL DEPARTMENT

Contents 2.0 2.1 Aims and Objectives Classification of Functions 2.1.1 The General and Specific Functions 2.1.2 Personnel Administration and Industrial Relations Functions 2.1.3 Functions Classified on the Basis of Capacities 2.1.4 Functions According to the Degree of Authority 2.2 2.3 Managerial Functions Operative Functions
Personnel management is the management of human resources in an organisation and is concerned with the creation of harmonious working relationships among its participants and bringing about their utmost individual development. Such management is concerned with leadership in both groups and individual relationship and labour relations and personnel management. It effectively describes the process of planning and directing the application, development and utilization of human resource in employment. In fact, personnel management undertakes all those activities which are concerned with human elements or relations as well as with material elements in an organisation.

Functions of the personnel department are very critical to the organization to realize its objectives. To understand better the functions performed by the personnel department, they have been classified into different kinds. In this lesson all kinds of functions performed by the personnel department would be discussed. After learning this lesson you would be able to explain the general, specific, managerial and operative functions of the personnel department.
2.1 CLASSIFICATION OF FUNCTIONS

The classification of functions has been discussed as below:
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(a) The General and Specific Functions Under General type of functions, the personnel management is required: (i) to conduct personnel research, (ii) to assist in the programmes of personnel administration, (iii) to develop appraisal plans, (iv) to launch education and training programmes, (v) to develop a competent work force, and (vi) to establish and administer varied personnel services delegated to personnel department. Under specific functions, the personnel management may involve itself in areas of employment, safety, wage and salary, benefit schemes, community relations and advice and counselling the employees. (b) Personnel Administration and Industrial Relations Functions Personnel administration functions relate to the function of managing people from the lower to the upper level of the organisation and embraces policy determination as well as implementation of policies by the personnel at the lower levels. Accordingly, personnel administration refers to creating, developing and utilising a work group and involves all types of inter-personnel relationships between superiors and sub-ordinates. The Industrial Relations functions, on the other, are not directly related to the function of managing people, but refer to interactions between the management and the representatives of the unions. Such functions involve all activities of employer-employee relationship, such as organisation of the union members, negotiation of contracts, collective bargaining, grievance handling, disciplinary action, arbitration, etc. - the purpose of all these being to prevent conflict between the two participants. (c) Functions Classified on the Basis of Capacities Although personnel managements function is the staff function, the Personnel Manager also performs three roles, viz: i) He performs a line function not only because he directs the work in his own department but also in some service functions such as recruitment, administration of benefits, the plant canteen and allied activities. ii) He functions as a co-ordinator of personnel activities, in so, far as he controls the functions of other departments. This he does through regular reporting on labour turnover, absenteeism, accidents and grievances to different levels of management. He also assists/advises the top management in accomplishing personnel objectives, policies and procedures. iii) He performs a typical staff function in the form of assisting and advising the line personnel to solve their problems. (d) Functions According to the Degree of Authority The personnel mans functions may be classified into three categories based on the degree of authority. They are:
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(a) Area of maximum authority. e.g., direction of payroll calculations, orientation procedure, transfer rules, etc. (b) area of combined use of authority and persuasion, e.g., establishment of disciplinary procedure, inter-departmental data gathering, determining the number of participants in a training programmes, etc. and (c) area of maximum persuasion, e.g., salary changes under the rules of the plant, employment of individuals recommended by the personnel department in other departments, initiating disciplinary action, etc. We now discuss below the functions of personnel management under two broad heads, viz. (I) Managerial functions, and (2) Operative functions.
2.2 MANAGERIAL FUNCTIONS

Personnel Manager must perform the basic functions of management. He exercises authority and leadership over other personnel. His functions involve: (a) Planning is the determination of the plans, strategies, programmes, policies, procedures and standards needs to accomplish the desired organisation objectives. (b) Organising. After a course of action has been determined, an organisation should be established to carry it out. An organisaiton is a structure, a framework and a process by which a cooperative group of human beings allocates its tasks among its members, identifies relationships and integrates its activities towards common objectives. (C) Directing. Directing is involved with getting persons together and asking them (either through command or motivation) to work willingly and effectively for the achievement of designated goals. (d) Co-ordinating. Coordinating refers to balancing timing and integrating activities in an organisation, so that a unity of action in pursuit of a common purpose is achieved. (e) Controlling is the act of checking, regulating and verifying whether everything occurs in conformity with the plan that has been adopted, the instructions issued and the principles established. It is greatly concerned with actions and remedial actions.
2.3 OPERATIVE FUNCTIONS

The operative functions of personnel management are concerned with the activities specifically dealing with procuring, developing, compensating and maintaining an efficient work force. These functions are also known as service functions.
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(a) The procurement function is concerned with the obtaining of a proper kind and number of personnel necessary to accomplish an organisations goals. It deals specifically with subjects such as the determination of manpower requirements, their recruitment, selection and placement (comprising activities to screen and hire personnel, including application forms, psychological tests, interviews, medical check-up, reference calling), induction, follow-up, transfers, lay-offs, discharge and separation, etc. (b) The development function is concerned with the personnel development of employees by increasing their skill through training so that job performance is properly achieved. Drafting and directing training programmes for all levels of employees, arranging for their on-the-job, office and vestibule-training, holding seminars and conferences, providing for educational and vocational counselling and appraising employee potential and performance are undertaken under this function. (C) The compensating function is concerned with securing adequate and equitable remuneration to personnel for their contribution to the attainment of organisational objectives. Functions related to wage surveys, establishment of job classifications, job descriptions and job analyses, merit ratings, the establishment of wage rates and wage structure, wage plans and policies, wage systems, incentives and profit-sharing plans etc. fall under this category. (d) Integration function. After the employee has been procured, his skill and ability developed and monetary compensation determined, the most important yet difficult of the personnel management is to bring about an integration of human resources with organisation and to cope with inevitable conflicts that ensue. Integration is concerned with the attempt to effect a reasonable reconciliation of individual, societal and organisation interests. Managerial activities that bring about a reasonable integration of human resources and the organisation objects are termed as human relations. The goal is to lead to productive and creative collaboration toward mutual objectives. Human relations programme tend to decrease accidents, absenteeism, turnover and operating errors, while simultaneously raising morale, quality and productivity. Such programmes also prevent undesirable behaviour such as sabotage, insubordination, strikes etc. All these problems are handled under grievance procedure, disciplinary action and labour union programmes. (e) The maintenance function deals with sustaining and improving the conditions that have been established. Specific problems of maintaining the physical conditions of employees (health and safety measures) and employee service programmes are the responsibility of the personnel department. Check Your Progress 1. Write the classifications of the functions of Personnel Department. ...... . ........................................................... ..........................................................................................................................
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Let us sum up The general functions of the personnel department deal with the overall activities related to personnel administration in the industry. Industrial relations functions deal with the personnel policies and its implementation. There are also role functions, managerial functions such as planning, organizing, directing, coordinating and controlling and operative functions to maintain the work force.
Model Questions 1. 2. 3. Explain the bases for classification of the functions of personnel department. Describe the managerial functions of the personnel department. What are the operative functions of the personnel department?-Explain.
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LESSON-3 THE ROLE OF PERSONNEL MANAGER

Contents 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 Aims and Objectives Human Resource Planning Formulation of Programmes and Procedure Employee Health and Safety Programmes Training and Development of Personnel Wage and Salary Administration Labour Management Relations Service and Benefits Personnel Research Audit and Review Work

In this lesson an attempt will be made to understand the role specific tasks of the personnel manager in the organization. After learning this lesson you will be able to explain Human Resource Planning in the organization Employee related functions of the personnel manager Personnel research in the organisation
The major responsibility of the personnel specialist or staff is that of helping all levels of management to make the company a good place to work in. This naturally means that the responsibility of this specialist is very wide and that his role in developing and administering a personnel programme is a multiple one. The task of the personnel administrator is to see that sound personnel programmes are installed, not merely conceived. It has been now fully recognised that the basic role of the Personnel Manager is the management of manpower resources. Such management is concerned with leadership both in group and individual relationship and labour-management relations. It effectively describes the process of planning and directing the application, development and utilization of human resources in employment. The responsibility of the personnel specialist lies in the following directions:
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3.1 HUMAN RESOURCE PLANNING

His responsibility is to supply qualified employees to the various departments after making a careful screening, recruitment and selection; and to maintain a continuous source of labour force for the organisation. This pre-supposes that he understands and knows the contents and requirements of the job, for no one would think of building an engine without first finding out what the specifications are. Therefore, the work of designing and installing job analysis and job evaluation plans, maintaining suitable records and undertaking wage and salary surveys in the labour market these too are staff responsibilities. The personnel specialist is also responsible for a co-ordination of merit- ruling schemes and for laying down objective standards for the assessment of performance. However, the decision to improve or change the entire pay schedule or fix the minimum and maximum pay in grades is the responsibility of the top management. For tasks like transfer, promotion or lay-off the personnel staff serves primarily in a co-ordinative capacity. Coaching, performance appraisal and post-appraisal counselling, job rotation, under studies and special broadening assignments are largely executed by operating managers but coordinated by the central personnel staff.
3.2 FORMULATION OF PROGRAMMES AND PROCEDURE

The personnel specialist is also responsible for assisting the top management in the formulation and development of personnel procedures and programmes after taking into consideration the prevailing social, economic, political, local and national policies on the different issues involved. He suggests how these programmes and policies should be implemented and sees to it that they are actually successfully carried out.
3.3 EMPLOYEE HEALTH AND SAFETY PROGRAMMES

Employee safety, education and health programmes (pre employment medical examination, periodic examination of those in service, operation of dispensaries, treatment of first-aid cases and removing health hazards) are a co-operative responsibility of both the staff and line personnel. In fact, the staff acts as a live wire for the promotion of safety consciousness in the plant. A framing and observance of the rules and regulations pertaining to disciplinary matters, together with the range of penalties for different offences is also his responsibility.
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3.4 TRAINING AND DEVELOPMENT OF PERSONNEL

His responsibility is to do the necessary research, plan and organise facilities so that the employee is sufficiently trained to perform his job satisfactorily. Since the training has to do with people, the responsibility for guiding, developing and co-ordinating it as well as developing programmes and keeping these active is that of the personnel staff.
3.5 WAGE AND SALARY ADMINISTRATION

The personnel specialist has to see to it that the companys wage and salary structure is sound and well administered. He should provide counselling and training to the supervisory force in the administration of the companys wage policies. He is, moreover, required to furnish guidance on performance reviews and merit ratings. He should spearhead the appraisal plan, which may be used by the management to provide an inventory of current and potential human resources in the organization.
3.6 LABOUR MANAGEMENT RELATIONS

His responsibility is to see to it that the employee is treated as a human being. He is required to develop a better understanding between the employees and the employers to ensure that a good labour-managemt relationship is established in the organisation. He is also responsible for bargaining on behalf of the management and for proceedings relating to conciliation, arbitration and adjudication of individual and group disputes.
3.7 SERVICE AND BENEFITS

The personnel specialist has the responsibility of administering employee benefit programmes insurance, accident claims, pensions, and provident fund and other fringe benefits. He also operates company medical facilities, fire-fighting and plant protection units, cafeterias, etc. He is responsible for encouraging the formation of clubs, thrift associations and recreational activities and for arranging social functions. The actual decision to establish or expand these services is taken by the top management on the advice of the personnel staff.
3.8 PERSONNEL RESEARCH

It is the responsibility of the personnel staff to conduct personnel research on improvement programmes or worthwhile innovations, recommendations or changes in sources of employee motivation; on effective supervisory styles, differential illness and accident possibilities in the work force and on the relative usefulness of alternative safety devices and clothing. These researches will keep
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the management continually informed so that better decisions and plans can be made. They will also add to the managements knowledge of improved motivation and utilization of the members of the organisation. The Personnel Manager is also responsible for maintenance of accurate and adequate records and statistics of the various personnel problems of the industrial unit. Statistics and data processing equipment are made use of as standard tools in research.
3.9 AUDIT AND REVIEW WORK

The personnel staff is responsible for a continuing audit and reviewing of the line departments in matters of policies, procedures and programmes, particularly those which relate to accidents, grievances, absenteeism, voluntary quits and disciplinary actions. Finally, it is the duty of the personnel staff to aid the management in ensuring effective communication throughout the organisation through proper media. In other words, the specialist should be an active force behind the two-way communication programme. The personnel manager must function as a technical specialist one who is equipped to perform skillfully the duties which the position entails; constantly strives for exact knowledge to enable him to recognise and correct the flaws and weaknesses in the programme as it evolves; and as a leader who has the vision and the personnel integrity to build an enduring organisation around sound principles, honest convictions and wholesome human relationship. He creates the environment in which employees can work effectively to accomplish the goal of the enterprise and, at the same time, obtain a substantial satisfaction of their need. The personnel function is essentially a staff function. The aim of personnel management is to develop conditions in a firm which will facilitate the production of goods and services in a manner that will be of optimum benefit to the organisation. However, the decision-making authority in all matters has to be shared with managers outside the personnel department. This sharing occurs both on a vertical basis, with those at the organisational levels above the top personnel executive, and horizontally, with managers of the departments. The Personnel Manager performs many miscellaneous roles in accordance with the needs of a situation, such as the conscience role is that of a humanitarian who reminds the management of its moral and ethical obligations to its employees.
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The Personnel Manager plays the role of a counsellor to whom the employees frequently go for consultation and with whom they discuss their marital, health, mental, physical and career problems. As a mediator, he plays the role of a peace-maker, offering to settle the disputes that may arise among individuals or groups. He acts as a liaison and communicating link between an individual and a group and between labour and management. The Personnel Manager has always been a frequent spokesman for or representative of the company because he has a better overall picture of his companys operations, since he deals intimately with many key organisational activities and functions. The Personnel Manager also acts as a problem-solver with respect to the issues that involve human resources management and overall long range organisational planning. He works as a change agent within the organisation because he is best suited to introduce and implement major institutional changes. He takes initiative for installing Organisational Development Programmes and convinces the top management of their need. It is he who alerts the top management regarding managerial obsolescence in his organisation. He helps line managers learn to detect and solve its own problem. The Personnel Manager plays many other roles as well. Any matter which needs someones attention and which nobody wants to deal with is often handled by the personnel department. Check Your Progress 1. Briefly explain personnel research.
Let us sum up The personnel manager in the organization involves in human resource planning and employee welfare related activities such as health and safely programmes, training and development, wage and salary administration. He also performs labour and management relations functions. Model Question 1. Discuss the role of personnel manager in the organization.
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LESSON-4 ORGANISATION OF PERSONNEL DEPARTMENT

Contents 4.0 4.1 4.2 4.3 Aims and Objectives Concepts of Organisation Structure Merits of Formal Organisation Structure Organisational Structure of the Personnel Department 4.3.1 Functional Basis 4.3.2 Service Basis 4.3.3 Clientele Basis Organisation is a group of people working together cooperatively under authority toward achieving goals and objectives that mutually benefit the participants and the organisation. People who work together require a defined system or structure through which they relate to each other and through which their efforts can be coordinated. Every organisation has goals or objectives for its existence. In the case of Personnel Management, it is to optimize the effectiveness of human resources. These goals can be achieved more suitably if the behaviour of the workers and the composition of the organisation can be predicted and integrated cooperatively. The formal organisation structure attempts to give order and unity to the actions and efforts of those who work together.

Effective organizational structure is essential to the attainment of objectives set. By establishing the structure in the organization the human resource will be utilized in the most effective way. After learning this lesson you will be able to Understand the merits of the organizational structure The bases for structuring the personnel department.
4.1
CONCEPTS OF ORGANISATION STRUCTURE
Several fundamental concepts describing the essentials of a sound organisation structure have been presented by the traditional school of thought. These deal with the following essentials:
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1.
Task Accomplishment or Personnel Satisfaction. The emphasis is on organisational accomplishment. i.e., the structuring of work relationships should be so planned that both the objectives of the organisation and the individual are realised simultaneously. Delegation of Authority. It is the delivery by one individual to another the right to act, to make decisions, to requisition resources, to direct others to act and to perform other tasks in order to fulfill job responsibilities. Proper span of supervision. Formal organisation structure determines the breadth of supervisors responsibilities by indicating the number of individuals who are directly accountable for that supervisor. The span of supervision is important because it determines the amount of attention each supervisor can give to each subordinate, and it affects ease in communicating, methods of decision-making that can be used and other superior-subordinate relationships. The degree of Specialisation. Under specialization, limited duties are performed regularly and repetitively. From the individuals point of view, specialisation makes the learning of job routines easier and makes the worker an expert in his job. From the organisations point of view, it allows proper utilization of the abilities of the individual workers and makes coordination of activities easier, facilities the development and implementation of essential controls, encourages the efficient productiveness of workers and quickens the training process. Communication Channel should be proper. Communication between the subordinates and their bosses should pass through each rung of the ladder without omission as a message is moved upward or downward. No Manager in the vertical chain should bypass as the communication moves its way. When messages are to be conveyed at the horizontal level, they should move upward vertically from the sender to the point where the sender and the receiver have a common superior, then the message can move downward vertically to the receiver.
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4.2 MERITS OF FORMAL ORGANISATION STRUCTURE

If the organisational process is carried out properly and the organisation structure is carefully designed the following benefits would occur: 1. 2. 3. Available resources will be utilised in the most effective way. Directional and operational goals and procedures will be determined clearly and energies devoted to their achievement. An orderly hierarchy in which people are related in a meaningful sequence will result. Individual responsibilities will be known clearly and the authority to act would be defined.
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4. 5. 6. 7.
Workers will benefit from planned superior-subordinate relationships in which each work receives essential support and direction. The activities of the individuals and the groups will become more rational, stable and predictable. Such an organisation may make the treatment of the individual workers more democratic, because patronage and favouritism are reduced. Individuals will be selected on the basis of ability to perform expected tasks. Simplification and specialisation of job assignment is possible in a more effective way.
4.3 ORGANISATIONAL STRUCTURE OF THE PERSONNEL DEPARTMENT

The internal organisational structure of the personnel department varies widely in different companies, depending upon their size. For example, in small companies, personnel functions are discharged by line executives. But, in a large company, where personnel activities are generally of a complex nature, a separate department is organised for the purpose. This department is variously knows as the Personnel Department or the Industrial Relations Department and is headed by the Personnel Manager or Personnel Director or Vice-President, Personnel or by the Industrial Relations Director or Labour Relations Officer, Labour Superintendent or Employment Officer, depending upon the nature of duties assigned to him and the terminology used. His position is under the President (or the General Manager) of the organisation. He has under him Interviewing Officers, Training Officers, Secretary, Medical Doctor/Welfare Officer, Head of Cleaners, Gatekeepers, etc. These subordinates undertake or are entrusted with the responsibility of recruitment and employment, training, industrial relations, employee services and security work. Personnel manager has under him subordinates who look after the Employees Section, the Training and Development Section, the Wages and Salary Administration Section, the Health, Safety and Benefits Section and the Labour Relations Section. The personnel in charge of these sections are generally known as employment officer. training director, wage and salary administrator, labour welfare officer, security officer, health officer, labour relations officer, etc. Personnel Departments or Units may be organised on three bases: Functional basis Service basis Clientele basis
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Functional Basis According to this basis, Departments are grouped into different functions, such as: Procurement (employment), Development (training) Compensation (Wage and Salary administration), Integration (Labour Relations), Maintenance (safety) and Separation (employee services, retirement). Such a division would be influenced by such variables as size, abilities of personnel and top management philosophy towards the role of the personnel. Service Basis This basis takes into consideration the service rendered or the purpose achieved. It tries to prevent dissatisfaction through hygienic maintenance, and promotion of satisfaction through motivators. This basis owes its evolution to Herzbergs theory. Clientele Basis This basis has been propounded by Soholik whose thesis, is that different requirements of different types of employees need specialization. Check Your Progress 1. What are bases for organizing Personnel Departments? 2. Draw a chart showing the structure of personnel department in an organization.
Let Us Sum Up The structure of the personnel department makes individual responsibilities clear and defines the authority to act. The personnel departments are organized on the functional basis, service basis and cliental basis. Model Questions 1. 2. What is organizational structure? What are its merits? How personnel department is organized? Explain its bases.
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LESSON-5 PERSONNEL POLICIES, PROCEDURES AND PROGRAMMES

Contents 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 Aims and Objectives Aims and Objectives of Personnel Policies Need for Personnel Policy Principles of Personnel Policies Types of Personnel Policies Responsibility for Policy Making Policy Administration Mechanism of Policy Formulation Procedures and Programmes

Every organization has a basic philosophy of human resources and personnel administration. Established policies ensure consistent treatment of all personnel throughout an organization. In this lesson the nature of personnel policies and its administration in the organizations are discussed. Personnel Policies A policy is a man-made rule of pre-determined course of action that is established to guide the performance of work toward the organisation objectives. It is a type of standing plan that serves to guide subordinates in the execution of their tasks. Personnel policies refer to principles and rules of conduct which formulate, redefine, break into details and decide a number of actions that govern the relationship with employees in the attainment of the organisation objectives.
5.1 AIMS AND OBJECTIVES OF PERSONNEL POLICIES

A managements personnel policy should have two types of objectives, general and specific. The statement of general objectives should express the top managements basic philosophy of human resources and reflect its deep underlying convictions as to the importance of people in an organisation and of the management activity which deals with people, i.e., personnel administration.
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The management must formulate and develop a basic creed, which should contain a clear-cut statement of the companys general objectives of the personnel managements major responsibility. The statement of specific objectives should refer to the various activities of personnel administration connected with staffing, training, developing, wage and salary administration, motivation, employee services and benefits, employee records, labour relations and personnel research. The aims of personnel policies are: To enable an organisation to fulfill or carry out the main objectives which have been laid down as the desirable minima of general employment policy To ensure that its employees are informed of these items of policy and to secure their co-operation for their attainment To provide such conditions of employment and procedures that will enable all the employees to develop a sincere sense of unity with the enterprise and to carry out their duties in the most willing and effective manner To provide an adequate, competent and trained personnel for all levels and types of management To protect the common interests of all the parties and recognise the role of trade unions in the organisation To provide for a consultative participation by employees in the management of an organisation and the framing of conditions for this participation which, however, shall not take place in technical, financial or trading policy To provide an efficient consultative service which aims at creating mutual faith among those who work in the enterprise To establish the conditions for mutual confidence and avoid confusion and misunderstanding between the management the workers by developing suggestion plans, joint management councils, work committees etc. and by performance appraisal discussions To provide security of employment to workers so that they may not be distracted by the uncertainties of their future To provide an opportunity for growth within the organisation to persons who are willing to learn and undergo training to improve their future prospects To provide for the payment of fair and adequate wages and salary to workers so that their healthy co-operation may be ensured for an efficient working of the undertaking
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To recognise the work and accomplishments of the employees, by offering non-monetary incentives To create a sense of responsibility, on the part of those in authority, for the claims of employees as human beings, who should be guaranteed protection of their fundamental rights and offered enough scope for developing their potential
Check Your Progress 1. 1 2 3 4 5 Write any five objectives of personnel policies.
5.2 NEED FOR PERSONNEL POLICY

Personnel policies need be specifically created because of the following reasons: The basic need and requirements of both an organisation and its employees require deep thought. The management is required to examine its basic convictions as well as give full consideration to practices in other organisations. Established policies ensure consistent treatment of all personnel throughout an organisation. Favouritism and discrimination are thereby minimised. A certainty of action is assured even though the top management personnel may change. The tenure of the office of any manager is finite and limited; but the organisation continues, and along with it continues the policies; and this continuity of policies promotes stability in an organisation. Because they specify routes towards selected goals, policies serve as standards or measuring yards for evaluating performance. The actual results can be compared with the policies to determine how well the members of an organisation have lived up to their professed intentions. Sound policies help to build employee enthusiasm and loyalty. This is especially true when they reflect established principles of fair play and justice, and when they help people to grow within an organisation.
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They set patterns of behaviour and permit participants of plan with a greater degree of confidence. Policies are control guides for delegated decision making. They seek to ensure consistency and uniformity in decisions on problems that recur frequently and under similar, but not identical, circumstances.
5.3
PRINCIPLES OF PERSONNEL POLICIES
In designing personnel policies, the management must balance the needs, goals, objectives and values of both the employers and the employees. Since these policies are rules of conduct, they are based on the following principles: Put the right man in the right place by a careful selection and placement to make sure that he is physically, mentally and temperamentally fit for the job he is expected to do and that the new employee may be reasonably expected to develop into a desirable employee, so that there will be the minimum number of square pegs in round holes. Train everyone for the job to be done, so that they qualify for better jobs, so that their accomplishments are limited to their ambitions and abilities, so that they do their present work very efficiently. Make the organisation a co-ordinated team through a proper coordinate and administration of different departments and divisions, so that there is a minimum amount of friction and unproductive or unnecessary work. This calls for proper planning and organization, control and direction of the entire organisation without destroying the initiative of the individual employee. Supply the right tools and the right conditions of work, for the better the tools, facilities and working conditions, the larger the output produced with the same human effort at lower costs so that, ultimately, higher wages may be paid and more good jobs provided. Give security with opportunity, incentive and recognition. In order that he may stick to his job, each employee should have sound incentives for work, such as fair compensation, recognition for results achieved, reasonable security and opportunity and hope for advancement in the organisation. Look ahead, plan ahead for more and better things. Superior products should be produced and distributed, and these should be attractive and meet the demands of consumers. This calls for research and a policy of continuing product planning and development.
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5.4 TYPES OF PERSONNEL POLICIES

There are various types of policies. Jucius identifies two types, viz., functional or organisational groupings of policies; and the centralised policies. The functional grouping of policies are those policies which are grouped for different categories of personnel, e.g., for the management dealing with personnel planning, organizing and controlling or for management concerned with functions of procuring, developing and utilising manpower. The centralised policies are framed for companies with several locations. They are formulated at the head office and apply through out the organisation. Policies may also be classified as major and minor. Major policies pertain to the over-all objectives, procedures and control which affect an organisation as a whole. They cover in a general way nearly every phase of an enterprise and its product and methods of financing, its organisational structure, plant location, its marketing and personnel. Such policies are formulated by the Board of Directors, and a framework is established within which major executives fit the remaining policies necessary to carry out the major objectives of an organisation. Minor policies on the other hand, cover relationships in a segment of an organisation, with considerable emphasis on details and procedures. Such policies are the outgrowth of major policies and preserve their unity of purpose. Check Your Progress 2. What are the types of personnel policies? 1 2
5.5 RESPONSIBILITY FOR POLICY MAKING

The actual formulation of personnel policies is the responsibility of the personnel manager: but its ultimate approval, or any change or modification in it, comes from the top executives; and his decision depends upon the financial ability of a company, the obligations imposed upon it by legislation, the agreement between employers and employees the repercussions of such decisions of the various levels of employees as well as on neighbouring industries and on the community. The executive role is one of mediating, reconciling, persuading, convincing, expressing and communicating the policy; developing tools and machinery, guiding, directing and evaluating the effectiveness with which those tools are used in the application of policy. The responsibility for personnel administration rests squarely upon the shoulders of the line management. The Personnel Department assists in communicating policies to those for whom they are meant and exercises control over it in order to ensure fairness and uniformity. If it is not communicated and interpreted correctly, even a sound policy may lose much of its usefulness.
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Therefore, personnel policies should be made known to the employees through supervisors at each level. Superiors may be informed of changed policies and kept informed of the accepted policies by any of the following methods: Written standard practice, procedures issued to cover company policies, with supplements to cover changes Booklets or Bulletins, issued to new employees setting forth rights, privileges, and responsibilities Verbal instructions from immediate superiors Group meetings of new employees convened regularly Union contract Company paper or house organ, giving details about company policies Conference conducted as a part of executive training programme
5.6 POLICY ADMINISTRATION

Essentially, in the administration of a personnel policy a large sum of money is involved. An unsound decision may endanger the companys bargaining power and position. Therefore, a thorough consideration must be given to the following: What purpose and objectives will it serve? What principles, concepts, practices and philosophies of the organisation will it project? How much would its implementation cost? What benefits will it offer and to whom? Is it administratively feasible and fair to the employees? What areas will it cover? What authority will it give to personnel at different levels? Will it be acceptable and consistent?
5.7 MECHANISM OF POLICY FORMULATION

Policy generation is a complex process, calling for the help of experts. Personnel policies are so designed as to reflect the current good practices in society. The first step in the mechanics of formulating a policy is the identification of a problem area or situation in which decisions of a similar and repetitive nature are involved. To some extent, policy-making involves all levels in the working
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organisation. It is the personnel staffs who study the existing documents, survey industry and community practices review the prevailing conditions in the company, interview other executive in the organisation to collect appropriate information, and get their suggestions and co-operation on personnel activities. After the policy draft has been prepared, the second step is to circulate its copies among all those who may be expected to operate under it. Their constructive criticism and suggestions would be very valuable. A second draft is then prepared and finalised, and the policy statements are given shape and promulgated throughout the organisation. Policies are developed after a thorough discussion so that all the managers involved in related areas of responsibility are personally committed to them. The third step is to undertake a periodic review, evaluation and revision of the policies. This is essential if organisational complacency and managerial stagnation are to be avoided. It is a part and parcel of the means of keeping an organisation vibrant and on its toes. If a policy is cancelled or withdrawn, it should be substituted by a new one, failing which mismanagement is likely to result. In brief, the steps necessary in designing a policy are Initiating a policy Uncovering of facts by the personnel department Recommending a policy to the top management and eliciting the views of all concerned Putting down a policy in writing Explaining and discussing the proposed policy with members of the organisation Adopting and launching it Communicating it to employees at all levels Administering it Initiating follow-up action on it Evaluating it Restating or reformulating the policy
5.8 PROCEDURES AND PROGRAMMES

For the accomplishment of the objectives of personnel policies, specific procedures and programmes are needed. While a policy indicates what and why, procedures indicate how a policy is to be carried out. It spells out in detail the methods, processes, movements and specific rules and regulations, and indicates the steps, time, place and personnel responsible for implementing it.
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It tells us where an action is to take place and at what stage. Procedures go further than policies in helping to clarify what is to be done in particular circumstances. They are usually set up high-level managers and observed by first line supervisors. They are less general than policies, and more specific in outlining the course of action and the sequence of activities necessary for the implementation of policies. They enable an organisation to maintain control since they, assign specific obligations to the staff for the performance of the various tasks. They are periodically reviewed and reissued, pointing out the amendments and the areas of slackness. Procedures tell us how the work is to be done, the programme tells what. It consists of the entire broad course of action governing employees at all levels. It can be thought of as a stable plan of action that continues over an extensive period of time. It is the end product of philosophy, values, concepts, principles, policies and procedures. Programme represents simple or complex activities, presumably developed to carry out the policy. They are a step ahead of policy in that they simplify the process of decision-making and reduce it to a routine. Programmes may require appropriate action or practice at all levels throughout an organisation. Check Your Progress 3. Differentiate personnel policies from procedures. .. Let Us Sum Up Personnel policy is a man made rule of predetermined course of action. Personnel policies with a will defined aims and objectives are essential for organizations. The personnel policies vary depend upon its nature. Policy making and administration involves a process and a mechanism. Model Questions 1. 2. Explain the principles and types of personnel policies. Describe personnel policy formulation and its administration.
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UNIT - II
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LESSON-6 MANPOWER PLANNING

Contents 6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 Aims and Objectives Importance of Manpower Manpower Planning Defined Need for Human Resource Planning The Objective of Manpower Planning Process of Human Resource Planning Responsibility for Human Resource Planning Manpower Plan Component 6.7.1 Short Range Analysis 6.7.2 Long Range Analysis

After reading this lesson you will be able to Define and establish the for manpower planning List out the objectives of manpower planning Explain the process of manpower planning
6.1
IMPORTANCE OF MANPOWER
Manpower or Human Resource may be thought of as the total knowledge, skills, creative abilities, talents and aptitudes of an organisations work force, as well as the values, attitudes and benefits of an individual involved. It is the sum total of inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the employed persons.
6.2 MANPOWER PLANNING DEFINED

Manpower Planning and Human Resource planning are synonymous in the past. The phrase manpower planning was widely used; but now the emphasis is on human resource planning which is more broad based Human Resource or Manpower Planning is the process by which a management determines how an organisation should move from its current manpower position to its desired
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manpower position. Through planning, a management strives to have the right number and the right number and the right kinds of people at the right places at the right time to do things which result in both the organisation and the individual receiving the maximum long-range benefit. Manpower planning may be defined 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.
6.3 NEED FOR HUMAN RESOURCE PLANNING

Human resource planning is deemed necessary for all organisations for one or the other of the following reasons: (i) To carry on its work, each organisation needs personnel with the necessary qualifications, skills, knowledge, work experience and aptitude for work. These are provided through effective manpower planning. (ii) Since a large number of persons have to be replaced who have grown old, or who retire, die or become incapacitated because of physical or mental ailments, there is a constant need for replacing such personnel. Otherwise, the work would suffer. (iii) Human resource planning is essential because of frequent labour turnover which is unavoidable and even beneficial because it arises from factors which are socially and economically sound such as voluntary quits, discharges, marriage, promotions; or factors such as seasonal and cyclical fluctuations in business which cause a constant ebb and flow in the work force in many organisations. (iv) In order to meet the needs of expansion programmes (which become necessary because of increase in the demand for goods and services by a growing population, a rising standard of living-which calls for larger quantities of the same goods and services as also for new goods: the competitive position of a firm which brings it more business arising from improvements effected in the slump period; and the rate of growth of the organisation), human resource planning is unavoidable. (v) The nature of the present work force in relation to its changing needs also necessitates the recruitment of new labour. To meet the challenge of a new and changing technology and new techniques of production, existing employees need to be trained or new blood injected in an organisation. (vi) Manpower planning is also needed in order to identify areas of surplus personnel or areas in which there is a shortage of personnel. If there is a surplus, it can be redeployed: and if there is shortage, it may be made good.
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6.4 THE OBJECTIVE OF MANPOWER PLANNING

The objective of human resource planning is to maintain and improve the organisations ability to achieve its goal by developing strategies that will result in optimum contribution of human resources. For this purpose, Stainer recommends the following nine strategies for the manpower planners: (a) they should collect, maintain and interpret relevant information regarding human resources; (b)they should report periodically man-power objectives, requirements and existing employment and allied features of manpower; (c) they should develop procedures and techniques to determine the requirements of different types of manpower over a period of time from the standpoint of organisations goals; (d) they should develop measures of manpower utilisation as component of forecasts of manpower requirements along with independent validation; (e) they should employ suitable techniques leading to effective allocation of work with a view to improving manpower utilisation: (f) they should conduct research to determine factors hampering the contribution of the individuals and groups to the organisation with a view to modifying or removing these handicaps; (g) they should develop and employ methods of economic assessment of human resources reflecting its features as income- generator and cost and accordingly improving the quality of decisions affecting the manpower; (h) they should evaluate the procurement, promotion and retention of the effective human resources: and (i) they should analyze the dynamic process of recruitment, promotion and loss to the organistiton and control these processes with a view to maximising individual and group performance without involving high cost.
6.5 PROCESS OF HUMAN RESOURCE PLANNING

The process of human resource planning is one of the most crucial, complex and continuing managerial functions which embraces organisation development, management developments, career planning and succession planning. The process has gained importance with the increase in the size of business enterprises, complex production technology, and the adoption of professional management techniques. It may be rightly regarded as a multi-step process including various issues, such as: (A) Deciding goals or objectives (B) Estimating future organisational structure and manpower requirements (C) Auditing human resources (D) Planning job requirements and job descriptions (E) Developing a human resource plan
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(A) Objectives of Human Resource Planning Human resource planning fulfils individual, organisational and national goals; but, the ultimate mission or purpose is to relate future human resources to future enterprise needs so as to maximise the future return on investment in human resources. In effect, the main purpose is one of matching or fitting employee abilities to enterprise requirements with an emphasis on future instead of present arrangements. (B) Estimating the Future Organizational Structure of Forecasting the Manpower Requirements The management must estimate the structure of the organisation at a given point in time. For this estimate, the number and type of employees needed have to be determined. Many environmental factors affect this determination. They include business forecasts, expansion and growth, design and structural changes, management philosophy, government policy, product and human skills mix and competition. Forecasting provides the basic premises on which the manpower planning is bulk. (C) Auditing Human Resources Once the future human resource needs are estimated, the next step is to determine the present supply of manpower resources. This is done through what is called Skills Inventory. A skills inventory contains data about each employees skills, abilities, work preferences and other items of information which indicate his overall value to the company. The above facts are usually recorded by an employee in some forms from which the information is fed into computer. Other data pertaining to his performance ratings and his superiors evaluation of his potential for promotion may also be fed into the computer. The result may either be kept in a file (on tape or otherwise stored) containing information as to the number of employees in the organisaiton, and other data about each employee, and an indication of his fitness for promotion. Some organisations do not compile a Skills Inventory but prepare Organisation charts to determine how many people, at what level, in what position and what kind of experience and training would be required to meet the objectives. These charts show a persons age, the number of years he has been in a particular position and his fitness for promotion. These Charts or Skills Inventories help in determining and evaluating the quantity and quality of the present human resources of an organisation. (D) Job Analysis After having decided how many persons would be needed, it is necessary to prepare a job analysis, which records details of training, skills, qualification, abilities, experience and responsibilities, etc., which are needed for a job. Job analysis includes the preparation of job descriptions and job specifications. This has been discussed in the later section of this chapter.
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(E) Developing a Human Resource Plan This step refers to the development and implementation of the human resource plan, which consists in finding out the sources of labour supply with a view to making an effective use of these sources. The first thing, therefore, is to decide on the policy-should the personnel be hired from within through promotional channels or should it be obtained from an outside source. The best policy which is followed by most organisations to fill up higher vacancies by promotion and lower level positions by recruitment from the labour market.
6.6 RESPONSIBILITY FOR HUMAN RESOURCE PLANNING

Human resource planning is the responsibility of the personnel department. In this task, it is aided by the industrial engineering department, the top management and the team of directors of different departments. It is mostly a staffing or personnel function. The over-all responsibility lies with the Board of Directors, because, these members are in a position to direct the future course of business, set appropriate goals for the management concerned in the formulation of personnel policies. The personnel departments responsibility is to recommend relevant personnel policies in respect of manpower planning, devise methods of procedure, and determine the quantitative aspects of manpower planning. The responsibilities of the personnel department in regard to manpower planning have been stated below: (i) (ii) To assist, counsel and pressurise the operating management to plan and establish objectives To collect and summarise data in total organisational terms and to ensure consistency with long-range objectives and other elements of the total business-plan To monitor and measure performance against the plan and keep the top management informed about it To provide the research organisational planning. necessary for effective manpower and
(iii) (iv)
6.7 MANPOWER PLAN COMPONENT

The manpower plan can be broken down into three components: (i) Forecasting - estimating future needs and stock taking of available resources in the organisation; (ii) Recruitment plan, to meet the gap between the internal resource and estimated need by external recruitment; (iii) Training and Development plan to utilise fully the human resources of the organisation and to develop the potential resources.
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In practice it has been found that short-term (under 2 years) and medium-range plans (2 to 5 years) are easier to formulate with greater degree of uncertainty. 6.7.1 Short Range Analysis Short range forecasts usually grow out of normal budgetary processes. 6.7.2 Long Range Analysis Long-range planning is more complex and is dependent upon mathematical and statistical models, as knowledge of demand variables and appropriate measurement techniques. Two general kinds of forecasting techniques are used: indirect and direct methods. Indirect methods involve the forecasting of general rules-production figures, for example- that must be translated into specific requirements or measures. Direct techniques involve the use of methods of estimate (directly) labour hours, number of supervisors or particular occupational needs. Aggregate models are based on several key variables that are known to directly affect the organisations overall human resource needs. Every organization has special characteristics or problems, and a planner can use an aggregate model to get the big picture. These models may apply to a geographic region or to the overall system. Estimates techniques models are used for situations where circumstances make it difficult to use mathematical or statistical approaches. Here expert opinion and experience are used. The volume of future activity of business conditions, including legislation, change, innovation, or competition situations that are almost impossible to qualify-can provide workable answers to problems. In sum, it may be noted that all organisations those that have a high labour turnover - must systematically plan their short-term, medium-term and longterm manpower needs. These requirements need periodical reviews and adjustments to meet changing conditions. Check Your Progress 1. Define manpower planning.
.. 2. Explain the process of manpower planning.
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Let Us Sum Up Manpower planning helps to determine manpower requirements and the means for meeting these requirements in order to carry out the plan of the organization. The need of manpower planning and the objectives are well established. The process of human resource planning involves multi-steps. Largely, human resource planning is a responsibility of the personnel department. Model Questions 1. 2. 3. Why manpower planning is essential?-Explain. List out and explain the objectives of manpower planning. Describe the process of manpower planning.
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LESSON-7 JOB DESCRIPTION

Contents 7.0 7.1 7.2 7.3 7.4 Aims and Objectives Uses of Job Description Components or Contents of Job Description Developing job Descriptions or Guidelines for writing a job Description Limitations of Job Description

After reading this lesson you will be able to understand How job description is used in an organizational setting for various purposes The basic components of job description and their nature Effective guidelines for writing job descriptions The limitations while using job descriptions in the organizational setting.
Job description is an important document which is basically descriptive in nature and contains a statement of job analysis. It provides both organisational information (location in structure, authority, etc) and functional information (What the work is). It defines the scope of job activities, major responsibilities and positioning of the job in the organisation. It provides the worker, analyst and supervisor with a clear idea of what the work must do to meet the demands of the job. Job description is different from performance assessment. The former concerns such functions as planning, coordinating and assigning responsibility; while the latter concerns the quality of performance itself. Though job description is not assessment, it provides an important basis for establishing assessment standards and objectives. Job Description describe jobs, not job holders, The movement of employees due to promotion, quits, etc. would create instability to job descriptions if people rather than jobs are described.
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7.1 USES OF JOB DESCRIPTION

Job description has several uses, such as: (i) (ii) Preliminary drafts can be used as a basis for productive group discussion, particularly if the process starts at the executive level. It aids in the development of job specifications, which are useful in planning recruitment, in training and in hiring people with required skills.
(iii) It can be used to orient new employees toward basic responsibilities and duties. (iv) It is a basic document used in developing performance standards. (v) It can be used for job evaluation, a wage and salary administration technique.
A job description enables the manager to frame suitable questions to be asked during an interview. It is particularly helpful when the application form is used as a tool for eliminating the unfit personnel. A job description helps us in: (i) (ii) (iii) (v) (vi) (vii) (ix) (x) (xi) (xii) (xiii) (xv) Job grading and classification Transfers and promotions Adjustments of grievances Establishing a common understanding of a job between employers and employees Investigating accidents Indicating faulty work procedures or duplication of papers Time and motion studies Defining the limits of authority indicating case of personal merit Facilitating job placement Studies of health and fatigue Determining jobs suitable for occupational therapy
(viii,) Maintaining, operating and adjusting machinery
(xiv) Scientific guidance (xvi) Providing hiring specifications (xvii Providing performance indicators
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Job description helps top executives, especially when they jointly discuss one anothers responsibilities. Overlapping or confusion can then be pointed out; questions can be raised about the major thrust of each position, and problems of structure can be identified. A job description becomes a vehicle for organisational change and improvement. Some companies have more than one job description for each job. A detailed version may be used in training and in evaluating a job, while a shorter version may be used in planning and hiring of management.
7.2 COMPONENTS OR CONTENTS OF JOB DESCRIPTION

A job description contains the following data: (1) Job identification, or Organisational Position which includes the job title, alternative title, department, division, plant and code number of the job. The job title identifies and designates the job properly. The department, division, etc., indicate the name of the department where it is situated-whether it is the maintenance department, mechanical shop, etc. The location gives the name of the place. The portion of job description gives answer to two important questions: to what higher level job is this job accountable; and who is supervised directly? (ii) Job summary serves two important purposes. First it provides a short definition which is useful as additional identification information when a job title is not adequate. Second, it serves as a summary to orient the reader towards an understanding of detailed information which follows. It gives the reader a quick capsule explanation of the content of a job usually in one or two sentences. (iii) Job duties and responsibilities give a comprehensive listing of the duties together with some indication of the frequency of occurrence or percentage of time devoted to each major duty. It is regarded as the heart of a job. It tells us what needs to be done? How it should be done? and why it should be done? It also describes the responsibilities related to the custody of money, the supervision of workers and the training of subordinates. (iv) Relation to other jobs: This helps to locate the job in the organisation by indicating the job immediately below or above it in the job hierarchy. It also gives an idea of the vertical relationships of work flow and procedures. (v) Supervision: Under it is given the number of persons to be supervised along with their job titles, and the extent of supervision involved-general, intermediate or close supervision. (vi) Machine, tools and equipment define each major type or trade name of the machines and tools and the raw materials used.
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(vii) Working conditions usually give us information about the environment in which a job holder must work. These include cold, heat, dust, wetness, moisture, fumes, odour and oily conditions etc. obtaining inside the organisation. (viii) Hazards give us the nature of risks to life and limb, their possibilities of occurrence, etc.
7.3
DEVELOPING JOB DESCRIPTIONS OR GUIDELINES FOR WRITING A JOB DESCRIPTION
Opinions differ on how to write job descriptions. Some experts are of the view that these should be written in detail and in terms of work flow. Others feel that these should be written in terms of goals or results to be achieved, in other words as performance standards (or what is popularly known as management by objectives). The prevalent thinking is that job descriptions should be written in terms of duties and responsibilities, i.e., in terms of functions performed. Job descriptions are written by Personnel Department or its representatives. Although there is no set way of writing a job description, the following pattern is fairly typical, and used by many companies: (i) (ii) (iii) (iv) (v) (vi) (vii) A paragraph is allocated to each major task or responsibility. Paragraphs are numbered and arranged in a logical order, task sequence or importance. Sentences are begun with an active verb. e.g.. types letters, interviews the candidates. Collects, sorts out, routes and distributes mail. Accuracy and simplicity are emphasised rather than an elegant style. Brevity is usually considered to be important but is largely conditioned by the type of job being analysed and the need for accuracy. Examples of work performed are often quoted and are useful in making the job description explicit. Job descriptions, particularly when they are used as bases for training, often incorporate details of the faults which may be encountered in operator tusks and safety check-points. Statements of opinion, such as dangerous situations are encountered, should be avoided. When job descriptions are written for supervisory jobs, the main factors (such as manning, cost control, etc.) are identified and listed. Each factor is then broken down into a series of elements with a note on the supervisors responsibility.
(ix) (x)
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7.4
LIMITATIONS OF JOB DESCRIPTION
In any use of job descriptions, it should be remembered that these descriptions are not perfect reflections of the job. The object of a job description is to differentiate it from other jobs and set its outer limits. Further, executives tend to carry work patterns with them into new jobs, thus modifying the job drastically. To avoid such problems, care must be exercised in writing a job description to make it as accurate as possible, and at the managerial or professional level it should be reviewed and discussed after the job. Jobs tend to be dynamic not static, and a job description can quickly go out of date. Therefore, jobs should be constantly revised and kept up-to-date and the personnel and the other departmental heads should be apprised of changes. Both supervisors and subordinates should understand the uses to which a job description would be put so that appropriate information is recorded by them. The relevant parties should agree that a job description fairly reflects the job; otherwise job evaluation and job performance review would seem to be unfair. Check Your Progress 1. Write any three uses of job description. .. Let Us Sum Up Jon description contains a statement of job analysis. It can be used toward informing basic responsibilities and duties to the employees, developing performance standards, wage and salary administration and employee improvement programmes. Job description, job summary, job duties and responsibilities are some of the essential components of job description. Job description should be written in terms of duties and responsibilities.
Model Question 1. Write an essay on job description.
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LESSON-8 JOB ANALYSIS

Contents 8.0 8.1 8.2 8.3 8.4 8.5 8.6 Aims and Objectives Purpose and Uses of Job Analysis Contents of Job Analysis The Steps in Job Analysis Techniques of Job Analysis Data Role analysis Job Specifications

In analyzing a job an attempt is made to describe the job structure. Job analysis information is basis for many other job related tasks such as job design and job specification. In this lesson the following would be described: The terms related to job analysis Objectives and applications of job analysis The process and techniques of job analysis Role analysis and job specifications
Developing an oranisation structure results in jobs which have to be staffed. Work is an organisations primary function. The basic work activities may relate to three categories-Data, People and Things. Under Data are included synthesizing, co-ordinating, analysing, compiling, computing, copying and comparing activities. People relate to monitoring, negotiating, instructing, supervising, diverting, persuading, speaking, signaling, serving and taking instructions. Things are concerned with setting up, precision working, operating-controlling, driving- operating, manipulating, feeding-off bearing and handling. While manpower inventory is concerned with telling what employees can do, job analysis assesses what employees are doing. From job analysis, specific details of what is being done and the skills utilised in the job, is obtained. Job analysis enables managers to understand jobs and job structures to improve to work flow or develop techniques to improve productivity. It also involves job design or redesign, coordinating demands on available time, individual psychological needs, technical procedures, and desired performances. Before we proceed to discuss job analysis in detail, certain terms relating to job need be understood. These terms are:
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Job: A job may be defined as a collection or aggregation of tasks, duties and responsibilities which as a whole, is regarded as a regular assignment to individual employees, and which is different from other assignments. In other words, when the total work to be done is divided and grouped into packages, we call it a job. Each job has a definite title based upon standardised trade specifications within a job: two or more grades may be identified, where the work assignments may be graded according to skill, the difficulty of doing them, or the quality of workmanship. Further, a job may include many positions, for a position is a job performed by, related to, a particular employee. Thus, it may be noted that a position is a collection of tasks and responsibilities regularly assigned to one person; while a job is a group of positions, which involve essentially the same duties, responsibilities, skill and knowledge. A position consists of a particular set of duties assigned to an individual. There may be, say, five persons, all of whom are classified under the same job; and yet each may perform a slightly different work. Therefore, each person would have a different position-position of a secretary, for example. It may be noted that while a job is impersonal, the position is personal Job Analysis: it is a procedure, by which pertinent information is obtained about a job, i.e., it is a detailed and systematic study of information relating to the operations and responsibilities of a specific job. Job analysis may be defined as the process of determining, by observation and study, and reporting pertinent information relating to the nature of a specific job. It is the determination of the tasks which comprise the job and of the skills, knowledge, abilities and responsibilities required of the worker for a successful performance and which differentiate one job from all others. Job Description: It is a written record of the duties, responsibilities and requirements of a particular job. It is concerned with the job itself and not with the work. It is a statement describing the job in such terms as its title, location, duties, working conditions and hazards. In other words, it tells us what is to be done and how it is to be done and why. It is a standard of function, in that it defines the appropriate and authorised contents of a job. Job Specification: It is a standard of personnel and designates the qualities required for an acceptable performance. It is a written record of the requirements sought in an individual worker for a given job. In other words, it refers to a summary of the personal characteristics required for a job. It is a statement of the minimum acceptable human qualities necessary for the proper performance of a job. Job Design: It is the division of the total task to be performed into the manageable and efficient units, positions, departments and divisions and to provide for their proper integration. The sub-division of work is both on a horizontal scale-with different tasks across the organisation being performed by different people and on the vertical scale, in which higher levels of the organisation are responsible for the supervision of more people, the coordination of sub-groups, more complex planning, etc.
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Job Analysis (JA): After a job has been defined, it is analysed, i.e., each task is described in detail JA is a procedure and a tool for determining the specified tasks, operations and requirements of each job. It is the process of getting information about jobs: specially, what the worker does; how he gets it done; why he does it; skill, education and training required; relationship to other jobs; physical demands; environmental conditions. In other words, it refers to the anatomy of the job. It is a complete study of job, embodying every known and determinable factor, including the duties and responsibilities involved in its performance, the conditions under which the performance is carried on, the nature of the task, the qualities required in the worker, and such conditions of employment as pay, hour, opportunities and privileges. It also emphasises the relation of one job to others in the organisation.
8.1 PURPOSE AND USES OF JOB ANALYSIS

A comprehensive JA programme is an essential ingredient of sound personnel management. It is the major input to forecasting future human resource requirements, job modifications, job evaluation, determination of proper compensation, and the writing of job descriptions. It is of fundamental importance to manpower management programmes because of the wider applicability of its results. The information provided by JA is useful, if not essential, in almost every phase of employee relations. (i) Organisation and Manpower Planning: It is helpful in organisational planning, for it defines labour needs in concrete terms and coordinates the activities of the work force, and clearly divides duties and responsibilities. Recruitment, Selection: By indicating the specific requirements of each job i. e., the skills and knowledge, it provides a realistic basis for the hiring, training, placement, transfer and promotion of personnel. Basically, the goal is to match the job requirements with a workers aptitude, abilities and interests. It also helps in charting the channels of promotion and in showing lateral lines of transfer. Wage and Salary Administration: By indicating the qualifications required for doing a specified job and the risks and hazards involved in its performance, it helps in salary and wage administration. Job analysis is used as a foundation for job evaluation. Job Re-engineering: Job analysis provides information which enables us to change jobs to suit with specific characteristics and qualifications of personnel. This takes two forms: (a) Industrial engineering activity, which is concerned with operational analysis, motion study, work simplification methods and improvements in the place of work and its measurement, and aims at improving efficiency, reducing unit labour costs, and establishing the production standard which the employee is expected to meet; and (b) Human engineering activity, which takes into consideration human capabilities, both physical and psychological, and prepares the ground for complex operations of industrial administration, increased efficiency and better productivity.
(ii)
(iii)
(iv)
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(v)
Employee Training and Management Development: Job analysis provides the necessary information to the management of training and development programmes. It helps it to determine the content and subject matter of intraining courses. It also helps in checking application information, interviewing, weighing test results, and in checking references. Performance Appraisal: It helps in establishing clear-cut standards which may be compared with the actual contribution of each individual. Health and Safety: It provides an opportunity for identifying hazardous conditions and unhealthy environmental factors so that corrective measures may be taken to minimize and avoid the possibility of accidents.
(vi) (vii)
In sum, it may be noted that job analysis is a systematic procedure for securing and reporting the information which defines a specific job. It has many uses in the management of personnel. It determines the qualifications required for a job; provides guidance in recruitment and selection; evaluates current employees for transfer or promotion; and establishes the requirements for training programmes. It is used as a foundation for job evaluation and helps in employee development by means of appraisal and counselling; for establishing improved methods of analysing problems of health, safety and fatigue; it functions as a guide in connection with discipline and grievances and as a basis for transfers, lay-offs and as a basis of comparison of the pay rates obtaining in other organisations; and it establishes workloads and job assignments. It also helps in redesigning the jobs to improve operational performance or to enrich job content and employee improvement. Managers may develop ways of giving their employees an increased sense of personnel accomplishment and control over themselves and their work. JA produces four kinds of documentation and procedures that are crucial to personnel activities: Job descriptions Job specifications Job evaluation Personnel assessment
In turn, the procedures and documentation are basic inputs for diverse personnel functions.
8.2 CONTENTS OF JOB ANALYSIS

A job analysis provides the following information: (i) Job identification: Its title, including its code number
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(ii) (iii)
Significant characteristics of a job: Its location, physical supervision, union jurisdiction, hazards and discomforts
setting,
What the typical worker does: Specific operation and tasks that make up an assignment, their relative timing and importance, their simplicity, routine or complexity, the responsibility or safety of others for property, funds, confidence and trust Which materials and equipment a worker uses: Metals, plastics, grains, yarns, milling machines, punch presses and micrometers How a job is performed: Nature of operation lifting, handling, cleaning, washing, feeding, removing, drilling, driving, setting up and many others Required personnel attributes: Experience, training, apprenticeship, physical strength, co-ordination or dexterity, physical demands, mental capabilities, aptitudes, social skills
(iv) (v) (vi)
(vii) Job relationship: Experience required, opportunities for advancement, patterns of promotions, essential co-operation, direction, or leadership from and for a job It is obvious from the foregoing that a job analysis is usually a clear indication of a job description and job specification.
8.3 THE STEPS IN JOB ANALYSIS

There are five basic steps required for doing a job analysis, viz.. Step 1: Collection of Background Information. The make-up of a job, its relation to other jobs and its requirements for competent performance are essential information needed for a job evaluation. This information can be had by reviewing available background information such as organisation charts (which show how the job in question relates to other jobs and where they fit into the overall organisation); class specifications (which describe the general requirements of the class of job to which the job under analysis belongs); and the existing job descriptions (which provide a starting point from which to build the revised job description). Step 2: Selection of Representative Position to be Analysed: Since the analysis of all jobs would be time-consuming, flow representative positions should be analysed. Step 3: Collection of Job Analysis Data: Job data on features of the job, required employee qualifications and requirements, should be collected either from the employees who actually perform a job; or from other employees (such as foremen or supervisors) who watch the workers doing a job and thereby acquire knowledge about it; or from the outside persons, known as the trade job analysts who are appointed to watch employees performing a job.
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The duties of such a trade job analyst are: (i) to outline the complete scope of a job and to consider all the physical and mental activities involved in determining what the worker does. For this purpose, he studies the physical methods used by a worker to accomplish his task (including the use of machinery, tools and his own movements and necessary mental facilities); (ii) find out why a worker does a job; and for this purpose he studies why each task is essential for the overall result; and (iii) the skill factor which may be needed in the worker to differentiate between jobs and establish the extent of the difficulty of any job. Step 4: Developing Job Description: The information collected is to be developed in the form of a job description. This is a written statement that describes the main features of the job, as well the qualifications/activities which the job incumbents must possess. Step 5: Developing Job Specification: The last step is to convert the Job Description statements into Job Specifications, i.e., to specifically mention what personal qualities, traits, skills and background is necessary for getting the job done.
8.4 TECHNIQUES OF JOB ANALYSIS DATA

The determination of job tasks, the concomitant skills and abilities necessary for successful performance, and the responsibilities inherent in the job can be obtained through such methods or approaches as the following: (i) (ii) (iii) (iv) Personal Observation Sending out Questionnaires Maintenance of Log Records Conducting Personal Interviews.
(1) Personal Observation: The materials and equipment used, the working conditions and probable hazards, and an understanding of what the work involves are the facts which should be known by an analyst. Direct observation is especially useful in jobs that consist primarily of observable physical ability, like the jobs of draftsman, mechanic, spinner or weaver. (ii) Sending Out Questionnaires: This method is usually employed by engineering consultants. Properly drafted questionnaires are sent out to jobholders for completion and are returned to supervisors. However, the information received is often unorganised and incoherent. The idea in issuing questionnaire is to elicit the necessary information from jobholders so that any error may first be discussed with the employee and after due corrections, may be submitted to the job analyst.
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(iii) Maintenance of Log Records: The employee maintains a daily diary record of duties he performs, marking the time at which each task is started and finished. But this system is incomplete, for it does not give us any desirable data on supervisor relationship, the equipment used and working conditions. Moreover, it is time-consuming. (iv) Personal interviews may be held by the analyst with the employees and answers to relevant questions may be recorded. But the method is timeconsuming and costly. However, it may be noted that the personal observation and interview approach are more or less complete and accurate. If a particular job is simple and repetitive, observation may be the only technique required. Otherwise, in most cases, interviews coupled with observation constitute the desirable approach. The following suggestions may make the job analysts task simp1e Introducing oneself so that the worker knows who he is and why he is there Showing a sincere interest in the worker and the job that is analysed Not try to tell the employee how to do his job Trying to talk to the employees and supervisors in their own language Not confusing the work with the workers Doing a complete job study within the objectives of the programmes Verifying the job information obtained
8.5 ROLE ANALYSIS

Dissatisfied with the somewhat simple and sterile nature of existing job descriptions that highlight formal duties, various critics have suggested that job analysis should be extended to include role analysis. The concept of role is broader than that of job. A role would consist of the total pattern of expected behaviour, interactions, and sentiments for an individual holding an assigned job. The job incumbent is exposed to a number of personnel who often expect different attitudes and behavioural patterns, thus establishing the potential for substantial role conflict. For example, the supervisor is expected by assigned subordinates to protect and promote their interests in the organization. Simultaneously, superiors levy expectations of operating the unit at its most productive and efficient level, which often entails actions deemed detrimental by subordinates. The ability to cope with such built-in job conflicts is a definite and important job requirement. Mere listing of official duties will not necessarily reveal the behavioural expectations of multiple and various groups that impinge upon the job incumbent.
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Role analysis of personnel holding boundary-spanning jobs provides a good example of its potential value in the making of personnel decisions. A boundaryspanning job is one whose incumbent is commissioned to deal with some significant element of the outer environment, e.g., credit officer, purchasing agent, finance officer, sales personnel, and personnel manager. The credit officer, for example, is expected by the finance department to minimize losses due to bad debts, thereby lessening organizational dependency upon outside banks. Simultaneously, the sales department views the task as one of facilitating growth of sales and creation of new customers. Thus, the credit officer, finance officer, and sales manager are all boundary-spanners, providing the basis for conflict spillover into the organization itself. The personnel manager is also a spanning agent as new employees are obtained from the outside. When strong labour unions are present in the environment, particularly stressful conflicts are generally encountered. Coping with these inevitable internal and external conflicts is a role requirement. With reference to contacts with significant external personnel, the boundary-spanning agent must deal with persons and organizations over whom absolute control is denied. Thus, flexible personalities and pragmatic personal value systems are often requisites. Such roles often require superior verbal skills, sensitivity to the values of external personnel, and an aptitude for remembering details. Thus, when the personnel manager is required to deal with a powerful labour union, effective role behaviour requires the selective use of words that do not incite emotional resistance, an understanding of union leadership values and motives, and the ability to remember names, dates, places, and events of significance to union negotiators. Organizations, viewed as entities, also establish different climates based on different philosophies, thereby leading to different behavioural expectations. The job descriptions for two supervisors in two different companies may look the same, but the role requirements could be substantially different. If one companys philosophy regarding leadership is basically democratic, role requirements would necessitate behaviour characterized by helping, supporting, persuading, talking freely and cheerfully, and empathic understanding. If the second companys philosophy is more authoritarian, the expected behavioural pattern is likely to include aggressiveness in relation to others, insistence upon adherence to prescribed patterns, impatience with faulty performance, and supportive relationships with superiors rather than with subordinates. Though the importance of the expected behavioral style cannot be denied, it is seldom diagnosed, recorded, and used systematically in the hiring process. For this reason, the face-to-face interview will doubtlessly remain an important part of the hiring process despite its frequently reported low validity as a predictor of job success. The accuracy of the job analysis process would be improved considerably if attention were given to role expectations surrounding each prescribed activity or duty.
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8.6 JOB SPECIFICATIONS

Job specifications translate the job description into terms of the human qualifications which are required for a successful performance of a job. They are intended to serve as a guide in hiring and job evaluation. As a guide in hiring, they deal with such characteristics as are available in an application bank, with testing, interviews, and checking of references. Job specifications are developed with the co-operation of the personnel department and various supervisors in the whole organisation. The personnel department co-ordinates the writing of job descriptions and job specifications and secures agreement on the qualifications required. These specifications relate to: a) Physical characteristics, which include health, strength, endurance, agerange, body size, height, weight, vision, voice, poise, eye, hand and foot coordination, motor co-ordination, and colour discrimination. b) Psychological characteristics or special aptitude which includes such qualities as manual dexterity, mechanical aptitude, ingenuity, judgement, resourcefulness, analytical ability, mental concentration and alertness. c) Personal characteristics or traits of temperament such as personal appearance, good and pleasing manners, emotional stability, aggressiveness or submissiveness, extraversion or introversion, leadership, co-operativeness, initiative and drive, skill in dealing with others, unusual sensory qualities of sight, smell, hearing, adaptability, conversational ability, etc. d) Responsibilities which includes supervision of others, responsibility for production, process and equipment, responsibility for the safety of others: responsibility for generating confidence and trust, responsibility for preventing monetary loss. e) Other features of a demographic nature which are age, sex, education, experience and language ability. The items to be included in job specifications vary according to the nature of an organisation and the uses to which they are put. However, items like age, sex, experience, skill, education, dexterity and personality are invariably included in job specifications. Job specifications are mostly based on the educated guesses of supervisors and personnel managers. They give their opinion as to who do they think should be considered for a job in terms of education, intelligence, training etc.
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Job specifications may also be based on statistical analysis. This is done to determine the relationship between: (1) some predictor or human trait (as height, intelligence finger dexterity, etc) and (2) some indicator or criterion of job effectiveness (such as performance as rated by the supervisor). The statistical analysis comprises five steps: (i) analysing the job and determining criteria of success; (ii) selecting personnel traits which should predict successful performance; (iii) testing candidates for these traits; (iv) measuring these candidates subsequent job performance; and (v) statistically analysing the relationship between the human trait and job performance. Check Your Progress 1. What is role analysis?
.. 2. What is job specification?
.. Let Us Sum Up Job analysis is a careful analysis of various aspects of the job. The job analysis information can be used for various purposes such as wage and salary administration, job reengineering etc. Various techniques are adopted in job analysis each of which having merits and demerits. Analysing the pattern of expected behaviour, interactions and sentiments for an individual holding an assignment is Role Analysis. Job Specifications translate the job description into terms of the human qualifications which are required for a successful performance of a job. Model Questions 1. 2. 3. Evaluate the methods of job analysis. What is role analysis?-Briefly explain. What is job specification?-Describe.
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LESSON-9 RECRUITMENT AND SELECTION

Contents 9.0 9.1 9.2 9.3 9.4 9.5 9.6 Aims and Objectives Recruitment Factors Affecting Recruitment Steps on Recruitment Process Recruitment Policy Prerequisites of a Good Recruitment Policy Sources of Recruitment 9.6.1 Internal Sources 9.6.2 External Sources 9.7 9.8 9.9 9.10 9.11 Methods or Techniques of Recruitment Selection Selection Procedure Selection Policy Steps in Selection Procedure

The proper selection of employees matching the right person with the right job is a complex job. Recruitment and selection are processes that involve many techniques. In this lesson the nature and techniques of recruitment and selection are discussed. After learning this lesson you would be able to explain The meaning, process, sources and methods of recruitment Meaning, steps and techniques of employee selection
9.1 RECRUITMENT
Recruiting is the discovering of potential applicants for actual or anticipated organisational vacancies. In other words, it is a linking activity bringing together those with jobs and those seeking jobs. Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force. Accordingly, the purpose of recruitment is to locate sources of manpower to meet job requirements and job specifications. Recruitment has been regarded as the most important function of personnel administration.
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9.2 FACTORS AFFECTING RECRUITMENT

All organisations whether large or small, do engage in recruiting activity, though not to the same extent. This differs with:(i) the size of the organisation: (ii) the employment conditions in the community where the organisation is located: (iii) the effects of past recruiting efforts which show the organisations ability to locate and keep good performing people: (iv) working conditions and salary and benefit packages offered by the organisation - which may influence turnover and necessitate future recruiting; (vi) the rate of growth of organisation; (vi) the level of seasonality of operations and future expansion and production programmes; and (vii) cultural, economic and legal factors, etc.
9.3 STEPS ON RECRUITMENT PROCESS

Personnel recruitment process involves five elements, viz., a recruitment policy, a recruitment organization, a forecast of manpower, the development of sources of recruitment and different techniques used for utilising these sources and a method of assessing the recruitment programme.
9.4 RECRUITMENT POLICY

Recruitment policy asserts the objectives of the recruitment and provides a framework of implementation of the recruitment programme in the form of procedures. A good recruitment policy must contain (a) Organisations objectives- both in the short-term and long-term must be taken into consideration as a basic parameter for recruitment decisions and needs of the personnel area-wise, job-family-wise. Identification of the recruitment needs to take decisions regarding the balance of the qualitative dimensions of the would be recruits i.e., the recruiters should prepare profiles for each category of workers and accordingly work out the man specifications, decide the sections, departments or branches where they should be placed and identify the particular responsibilities which may be immediately assigned to them. Preferred sources of recruitment, which would be tapped by the organisation e.g., for skilled or semi-skilled manual workers, internal sources and employment exchanges may be preferred: for highly specialised categories and managerial personnel other sources besides the former, may be utilised. Criteria of selection and preferences: These should be based on conscious thought and serious deliberations. In some cases trade unions may be consulted in working out the recruitment policy. In others, management may take the unilateral decision. The cost of recruitment and financial implications of the same.
(b)
(c)
d)
(e)
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9.5 PREREQUISITES OF A GOOD RECRUITMENT POLICY

The recruitment policy of an organisation must satisfy the following conditions: It should be in conformity with its general personnel policies It should be flexible enough to meet the changing needs of an organisation It should be so designed as to ensure employment opportunities for its employees on a long-term basis so that the goals of the organisation should be achievable; and it should develop the potentialities of employees It should match the qualities of employees with the requirements of the work for which they are employed It should highlight the necessity of establishing job analysis
9.6
SOURCES OF RECRUITMENT
Before an organisation actively begins recruiting applicants, it should consider the most likely source of the type of employee it needs. Some companies try to develop new sources, while most only try to tackle the existing sources they have. These sources accordingly may be termed as internal and external. 9.6.1 Internal Sources Internal sources are the most obvious sources. These include personnel already on the pay-roll of an organization. i.e., its present working force. Whenever any vacancy occurs, somebody from within the organisation is upgraded. Transferred, promoted or sometimes demoted. This source also includes personnel who were once on the pay-roll of the company but who plan to return or whom the company would like to rehire, such as those on leave of absence, those who quit voluntarily, or those on production lay-offs. 9.6.2 External Sources These sources lie outside the organisation. They usually include: New entrants to the labour force, i.e., young, mostly inexperienced potential employeesthe college students The unemployedwith a wide range of skills and abilities Retired experienced persons such as mechanics, machinists, welders, accountants Others not in the labour force, such as married women and persons from minority groups
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9.7 METHODS OR TECHNIQUES OF RECRUITMENT

Recruiting methods can be classified into three categories: direct, indirect and third party. Direct Methods: These include sending travelling recruiters to educational and professional institutions, employees contacts with public, and manned exhibits. One of the widely used direct methods is that of sending of recruiters to colleges and technical schools. Most college recruiting is done in co-operation with the placement office of a college. The placement office usually provides help in attracting students, arranging interviews, furnishing space, and providing student resumes. Other direct methods include sending recruiters to conventions and seminars, setting up exhibits at fairs, and using mobile offices to go to the desired centres. Indirect Methods: Indirect methods involve mostly advertising in newspaper, on the radio, in trade and professional journals, technical magazines and brochures. Advertising in newspapers and/or trade journals and magazines is the most frequently used method, when qualified or experienced personnel are not available from other sources. Senior posts are largely filled by such methods when they cannot be filled by promotion from within. Third Party Methods: These include the use of commercial or private employment agencies, state agencies, placement offices of schools, colleges and professional associations, recruiting firms, management consulting firms, indoctrination seminars for college professors, and friends and relatives.
9.8 SELECTION 9.9 SELECTION PROCEDURE

The selection procedure is concerned with securing relevant information about an applicant. This information is secured in a number of steps or stages. The objective of selection process is to determine whether an applicant meets the qualifications for a specific job and to choose the applicant who is most likely to perform well in that job.
9.10
SELECTION POLICY
While formulating a selection policy, due consideration should be given to organizational requirements as well as technical and professional dimensions of selection procedures. Yoder and others have suggested goals, technological issues, cost factors, extent of formality, etc. In other words, an effective policy must assert the why and what aspects of the organisational objectives.
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9.11
STEPS IN SELECTION PROCEDURE
The following is a popular selection procedure though it may be modified to suit individual situation: 1. 2. 3. 4. 5. 6. 7. Reception or preliminary interview or screening Application blank a fact-finder which helps one in learning about an applicants background and life history A well conducted interview to explore the facts and get at the attitudes of the applicant and his family to the job A physical examination health and stamina are vital factors in su Physiological testing to explore candidates suitability for a job A reference check Final selection approval by manager and communication of the decision to the candidate
Reception, Initial or Preliminary Interview or Screening The initial screening is usually conducted by a special interviewer or a high caliber receptionist in the employment office. When a large number of applicants are available, the preliminary interview is desirable both from the companys point of view and that of the applicants seeking employment. This interview is essentially a sorting process in which prospective applicants are given the necessary information about the nature of the jobs in the organisation. If a candidate meets with the requirements of the organization, he may be selected for further action. If he does not fit into the organizational structure, he is eliminated at the preliminary stage. Application Blank The blank provides preliminary information as well as aid in the interview by indicating areas of interest. It is a good means of quickly collecting verifiable and therefore fairly accurate basic historical data from the candidate. Weighted Application Blank Some companies analyse the information on an application blank and determine statistically its relation to latter success in the job. The answers are weighted according to the extent of job success. Such application blanks are known as weighted application blanks. Such forms may speed both recruitment and selection.
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Bio-Data Sometimes, when a management wants to appoint an existing employee to a higher position, it may ask him to submit his necessary bio-data for consideration at the time of selection or interview. In such circumstances, an employee need not fill in an application blank. Such bio-data may also be got from different organisations having good employees for whom chances of advancement in their own organisation are very bleak. Biographical Inventories These inventories are specially constructed for the purpose of predicting success in a given type of work. The items included are those which a person, who conducts an analysis, believes to have some potential as predictors. A typical inventory contains a large number of items, utilizes a multiple-choice formal exclusively, and deals with those matters that are normally not covered in application blank. Such items deal with experiences in early life, hobbies, health, social relations, values and opinions, etc. Physical Examination Certain jobs require unusual stamina, strength or tolerance of hard working conditions. A physical examination reveals whether or not a candidate possesses these qualities. It brings out deficiencies, not as a basis of rejection but as a positive aid to selective placement and as indicating restrictions on his transfer to other positions. Reference Checks The use of references is common in most selection procedures, for it involves only a little time and money, and minimum of effort. The procedure places reliance on the evaluation of former employers, friends and professional personnel. Checks on references are made by mail or by telephone, and occasionally in person, or by using a reference form, such as that given below, which requires specific answers. The opinions of previous employers and others, who have known the applicant, are generally useful in getting a picture of his potential performance in a particular job. When background checks are used, it is important to get more than two viewpoints. It is vitally important that references should indicate how long and in what capacity the referees had the contact with the applicant. However, some employers are of the opinion that references are useless because a referee rarely gives an unfavourable opinion about the application. But other employers consider reference-checking to be an integral part of the total over-all selection and assessment programme.
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Check Your Progress 1. Differentiate recruitment from selection.
Let Us Sum Up Recruitment is a process of seeking potential applicants for organizational vacancies and selection is a process of filling vacancies. Many factors affect the recruitment process and organizations have recruitment policies. The recruitment sources may be internal such as present working force and external such as new entrants. The methods of recruitment may be direct method, indirect method and third party method. Selection techniques are many and they are used according to the nature of the organizational needs of selecting employees. Model Questions 1. 2. Write an essay on recruitment process and techniques. Describe the selection techniques.
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LESSON-10 TRAINING AND DEVELOPMENT

Contents 10.0 10.1 10.2 10.3 Aims and Objectives Principles of Learning Need and Objectives Training Methods
10.0
AIMS AND OBJECTIVES
Training and development take place at all levels of employment from unskilled workers to executives in the organization, from the first day on a job to the final month before retirement. The training results become significant because decisions on placement, promotion, retention and transfer are often based on performance during training. After learning this lesson you will be able to explain The principles of learning that aid organizational training Needs of training and its objectives Various training methods
Employee training is the process whereby people learn the skills, knowledge, attitudes and behaviours needed in order to perform their job effectively. Training is the act of increasing the knowledge and skill of an employee for doing a particular job. It is concerned with imparting specific skills for particular purposes. The term development is a broad one. It includes both training and education. Its aim is to improve the overall personality of an individual. The term is mostly used in the context of executives only.
10.1
PRINCIPLES OF LEARNING
The following principles should be followed if a training programme is to be effective: 1. Knowledge of Results. Every employee in a learning situation wants to know what is expected of him and how well he is doing. He seeks information, appraisal and guidance about his progress, and is made uneasy by the possibility that he may be making home serious error in his behaviour and not knowing that he is doing so.
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2. Motivation. A motivated worker learns better than an unmotivated one. Until the worker has become convinced of the need of training and of the worthwhileness of the returns the level of motivation will be low and learning will be perfunctory and slow. 3. Reinforcement. In order for behaviour to be acquired, modified and sustained, it must be rewarded (reinforced). 4. Supporting Climate and Practice. In order that the trainee may not revert back to the old behaviour it is essential that he practises the new learning daily. The internal environment of many organisations is hostile to this. Too often the trainee is not able to implement in his work place what he has learned during the training session. 5. Part versus Whole Learning. Given a task of relatively high organisation, as task complexity is increased whole task training should become relatively more efficient than the part task methods. Given a task of relatively low organisation, an increase in task complexity should result in part methods becoming relatively superior to the whole task training. 6. Transfer of Learning. Transfer of learning from the training situation to the job would depend upon the extent to which there are identical elements in the two. Thus, if the devices and facilities used in training are similar to the devices and facilities used on the job (a phenomenon called physical fidelity) and if the human elements involved in the training are similar to those on the job (a phenomenon called psychological fidelity) there would be positive transfer of learning. This means that the trained employee by virtue of his training would display superior performance on the job to untrained individual. But if the physical and psychological fidelities are wanting there would be negative transfer of learning. This means that the trained employee would display inferior performance on the job.
10.2
NEED AND OBJECTIVES
The need for training in part depends upon the companys selection and promotion policies. Companies that attempt to employ only people who already have the needed skills, place less emphasis on training. On the other hand, firms that stress promotion from within may have to take special steps to ensure that employees develop the skills which will be needed. Three trends have contributed, in recent years, to more attention to the development of skills. One, fewer and fewer skills are now regarded inborn that cannot be taught. It is hoped that one can learn almost all aspects of a job by reading. That is why we find nowadays almost all technical details of a job written out in the instruction manuals. Two, the accelerated rate of technological change-in the plant, office, and marketplace-is making many skills obsolete.
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Workers have to be retrained to do new tasks. Three, globalisation is making it increasingly essential for workers and executives to be aware of diverse gaffes, life styles and attitudes of people in other countries. They need to learn many things such as how to introduce oneself before a foreign client, converse and negotiate, talk on telephone, use body language and so on. Surveys indicate that nearly all large organisations employ some formalised training. The major objectives of training are as follows: 1. 2. 3. 4. 5. 6. To train the employee in the company culture pattern. To train the employee to increase his quantity and quality of output. This may involve improvement in work methods or skills. To train the employee for promotion to higher jobs. To train the employee to avoid social mistakes. To train the employee toward better job adjustment and high morale. To reduce supervision, wastage and accidents. Development of effective work habits and methods of work should contribute toward a reduction in the accident rate, less supervision and wastage of material.
10.3
TRAINING METHODS
No simple formula defines the type of training to be given to operatives. Their skill needs, the size and traditions of the company, the abilities of trainers, the time and money available for training and the experience of the company about the training activities that have been carried on in the past, all will affect the type of training that will be most successful in a given situation. Nevertheless it will be helpful to indicate briefly the principal alternatives from which the manager may choose. (1) Training-on-the-job The most important type of training is training-on-the-job. The experience of actually doing something makes a lasting impression and has a reality that other types of training cannot provide. The worker in this method learns to master the operations involved on the actual job situation under the supervision of his immediate boss. There are several types of training programmes which make use of on-the-job training concept. Some of them are described below: Job Rotation This method involves the employee being sent through different jobs, thereby providing him a wider exposure.
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Internship Training This refers to a joint programme of training in which schools and business cooperate to enable the students to gain a good balance between theory and practice. Classroom principles are better understood against the practical background in a factory. Apprenticeship This training is used in those trades, crafts and technical fields in which proficiency can be acquired after a relatively long period of time in direct association with the work and under the direct supervision of experts. Vestibule training When the amount of on-the-job training that has to be done exceeds the capacity of the line supervisor, a portion of this training is taken away from the line and assigned to staff through a vestibule school. The responsibility to operate a vestibule school generally rests with the personnel department. This training gets its name from the resemblance of the school to a vestibule through which one passes before entering the main room of a house. 2. Case Study Method A case is a written account seeking to describe an actual situation. A good case is the vehicle by which a chunk of reality is brought into the classroom to be discussed over by the class and the instructor. The case study method aims at compelling the student to think actively, to analyse and sift evidence, to see beyond the confines of his specialty and to communicate coherently. There are 2 types of case study methods: directed and non-directed. In the directed case study students are presented with the case and given a number of questions to answer or decisions to make. In the non-directed case study the student is simply presented with the material and is expected to explore the possible outcomes. 3. Incident Method In the incident method only a brief incident is presented to provoke discussion in the class. The group then puts questions to the instructor to draw out of him the salient facts and additional information needed to arrive at a reasonable solution or resolution of the case. The method draws the participants into discussion with greater emotional involvement.
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4. In-basket Method This device consists of letters, notes, documents, and reports designed to simulate on-the-job reality of the managers in-basket. The trainee deals with the in-basket materials as he would in his job. Usually feedback is provided so that he can appraise his results. The advantages of this method are similar to those of the case method-realism, high involvement and built-in motivation. 5. Management Games In these games, participants are divided into various teams which are placed in competition with each other in resolving some problem information about which is supplied to all teams. The game tests players ability to absorb information quickly and make decisions under fire. Now with the introduction of video and audio, business games are getting more and more into live emulations and away from traditional simulations. 6. Sensitivity Training or Laboratory Training This involves the use of a training- group, in which ten to fifteen persons are put into a face-to-face situation. This group has no agenda, no established roles and no established norms of performance. This creates a tension and anxiety with group members attempt to relieve by withdrawing from active participation or by attempting to provide the missing structural elements, assuming leadership, establishing goals, setting up an agendaattempts which may not meet with unanimous approval, but which do reveal the needs of individuals and some of their habitual reactions to stress. 7. Role Playing In this method the instructor assigns parts taken from case materials to group members. The role players attempt to act their parts as they would behave in a real life situation, working without a script or memorised lines and improvising as they play the parts. 8. Transactional Analysis Transactional Analysis (TA) provides an individual with a practical and useful method for analysis and understanding of human behaviour. In fact, it is a method of analysing a transaction. A transaction is nothing but a social intercourse between two or more people who encounter each other. In every social intercourse there is a stimulus provided by one individual and a response to that stimulus given by another individual. Analysis of any transaction can be done by analysing the personality of an individual.
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9. The Johari Window The Johari Window is a conceptual model for increasing personal effectiveness. It was developed by Joseph Luft and Harry Ingham (the name Johari combines their first names). This model divides an individuals personality into 4 parts. The part which is known both to the individual and others is called Arena. That part which is known to the individual but not to others is called closed. That part which is known to others but not to the individual is called Blind. And that part which is not known both to the individual and to others is called Dark. The implication of this model is that in order to make oneself effective in interpersonal relations one should expand ones arena. Alternatively, one must try to reduce the other three areas. Blind can be reduced by receiving feedback from others. Closed area can be reduced by self-disclosure. Dark area can be reduced by special psycho-analysis techniques. 10. Conferences Mutual problems form the subject of discussion in a conference. Participants pool their ideas and experience in attempting to arrive at improved methods of dealing with these problems. The attitude is one of joint exploration. Members of the group come together to teach each other and to learn together. This method is most appropriate for the purpose of presenting new and sometimes complicated material. 11. Autonomy training One of the latest approaches to management training, called autonomy training, is aimed at developing the individuals ability to manage his own training. It involves leaving the trainee almost entirely on his own. He has first to work out what he would like to learn, and then teach himself. Check Your Progress 1. Name any five training methods.
1 2 3 4 5
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Let Us Sum Up Training helps the selected employees to learn the job skills and update the current knowledge that needed to perform the task. Principles of learning are the bases for organizational training. The first step in establishing a training programme is to specify the training objectives. There are various methods and techniques for training unskilled workers and executives.
Model Questions 1. 2. 3. Describe the principles of learning. Establish the need for training and explain training objectives. Elaborate the training methods.
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UNIT III
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LESSON-11 PERFORMANCE APPRAISAL

Contents 11.0 11.1 11.2 11.3 Aims and Objectives Importance and Purposes The Evaluation Process Methods, Techniques or Tools for Appraising Performance
11.0
AIMS AND OBJECTIVES
Performance appraisal is considered as most important for the organizations. It provides highly useful information about the individual performance on the job. The performance appraisal information is used for making decisions regarding promotion and training and development. In this lesson the essential components of performance appraisal are discussed. After reading this lesson you will be able to understand The objective of performance appraisal The techniques of performance appraisal
A performance appraisal is a process of evaluating an employees performance of a job in terms of its requirements. Heyel observes; it is the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed, for purposes of administration including placement, selection for promotions, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally. Terminology Used The appraisal of individuals in an employment has been labelled and described by experts over the years in different ways. Common descriptions include performance appraisal, merit rating, behavioural assessment, employee evaluation, personnel review, progress report, staff assessment, service rating and fitness report. Some personnel authorities use such concepts interchangeably, while others interpret some of these appraisal phrases differently. However, the term performance appraisal or evaluation is most widely used.
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11.1
IMPORTANCE AND PURPOSES
Performance appraisal has been considered as a most significant and indispensable tool for an organisation, for the information it provides is highly useful in making decisions regarding various personal aspects such as promotions and merit increases. Performance measures also link information gathering and decision-making processes which provide a basis for judging the effectiveness of personnel sub-divisions such as recruiting, selection, training and compensation. Accurate information plays a vital role in the organisation as a whole. They help pinpoint weak areas in the primary systems (e.g., marketing, finance and production). It is easier for managers to see which employees need training or counselling, because jobs are grouped by categories (e.g., production foreman, sales manager, financial analyst). These categories can be broken into smaller and smaller groups, if necessary. If valid performance data are available, timely, accurate, objective, standardised and relevant, management can maintain consistent promotion and compensation policies throughout the total system. On the basis of merit rating or appraisal procedures of various companies, the main objectives of employee performance appraisal are: (i) To enable an organisation to maintain an inventory of the number and quality of all managers and to identify and meet their training needs and aspirations To determine increments and provide a reliable index for promotions and transfers to positions of greater responsibility To maintain individual and group development by informing the employee of his performance standard To suggest ways of improving the employees performance when he is not found to be up to the mark the review period
(ii) (iii) (iv)
It will, thus, be seen that performance appraisal is an important tool of personnel management. It is a judgement of the characteristics, traits and performance of employees and has a wide range of utility.
11.2
THE EVALUATION PROCESS
The process of evaluation begins with the establishment of performance standards. The next step is to communicate these standards to the employees. The third seep is the measurement of performance, to determine what actual performance is, it is necessary to acquire information about it. The fourth step is the comparison of actual performance with standards. The employee is appraised and judged of his potential for growth and advancement. Attempts are made to note deviations between standard performance and actual performance. At the next stage, the results of appraisal are discussed periodically with the employees, where good points, weak points, and difficulties are indicated and discussed so that performance is improved. The final step is the initiation of corrective action when necessary.
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11.3 METHODS, TECHNIQUES OR TOOLS FOR APPRAISING PERFORMANCE

Several methods and techniques of appraisal are available for measuring the performance of an employee. The methods and scales differ for obvious reasons. First, they differ in the sources of traits or qualities to be appraised. The qualities may differ because of differences in job requirements, statistical requirements and the opinions of the management. Second, they differ because of the different kinds of workers who are being rated, viz., factory workers, executives or salesmen. Third, the variations may be caused by the degree of precision attempted in an evaluation. Finally, they may differ because of the methods used to obtain weightings for various traits. There is little agreement on the best method to evaluate managerial, professional or salaried performance. Different authors have suggested different approaches. Traditional Methods Straight Ranking Method: It is the oldest and simplest method of performance appraisal, by which the man and his performance are considered as an entity by the rater. No attempt is made to fractionalize the ratee or his performance; the whole man is compared with the whole man; that is, the ranking of a man in a work group is done against that of another. The relative position of each man is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against that of another member of a competitive group by placing him as number one or two or three in total group; i.e. persons are tested in order of merit and placed in a simple grouping. This is the simplest method of separating the most efficient from the least efficient; and relatively easy to develop and use. Paired Comparison Technique: By this technique, each employee is compared every trait with all the other persons in pairs one at a time. With this technique, judgement is easier and simpler than with the ordinary ranking method. The number of times each individual is compared with another is tallied on a piece of paper. These numbers yield the rank order of the entire group. The number of decisions is determined by the formula N(N-2), where N represents the number of persons to be compared. The results of these comparisons are tabulated and a rank is assigned to each individual. This method is not suitable when a group is large because, in that case, the number of judgements becomes excessively large. Man-to-Man Comparison Method: This technique was used by the USA army during the First World War. By this method, certain factors are selected for the purpose of anlayis (such as leadership, dependability and initiative), and a scale is designed by the rater for each factor. A scale of man is also created for each selected factor. The each man to be rated is compared with the man in the scale, and certain scores for each factor are awarded to him. In other words, instead of comparing a whole man to a whole man, personnel are compared to the key man in respect of one factor at a time. This method is used in job evaluation,and is known as the factor comparison method. In performance appraisal, it is not of much use because the designing of scales is a complicated task.
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Grading Method: Under this system, the rater considers certain features and marks them accordingly to a scale. Certain categories of worth are first established and carefully defined. The selected features may be analytical ability, cooperativeness, dependability, self-expression, job knowledge, judgement, leadership and organising ability, etc. They may be: Aoutstanding; Bvery good; Cgood or average; D fair and E poor. The actual performance of an employee is then compared with these grade definitions, and he is allotted the grade which best describes his performance. Such type of grading is done in semester examinations and also in the selection of candidates by the public service commissions. Graphic or Linear Rating Scale: This is the most commonly used method of performance appraisal. Under it, a printed form, one for each person to be rated. These factors are: employee characteristics and employee contribution. In employee characteristics are included such qualities as initiative, leadership, cooperativeness, dependability, industry, attitude, enthusiasm, loyalty, creative ability, decisiveness, analytical ability, emotional ability, and co-ordination. In the employee contribution are included the quantity and quality of work, the responsibility assumed, specific goals achieved, regularity of attendance, leadership offered, attitude towards superiors and associates, versatility, etc. These traits are then evaluated on a continuous scale, wherein the rater places a mark somewhere along a continuum. The rating-scale method is easy to understand and easy to use, and permits a statistical tabulation of scores. A ready comparison of scores among the employees is possible. These scores indicate the worth of every individual. It is the most common evaluation tool in use today. Besides, when ratings are objectively given, they can provide useful feed back. Forced Choice Description Method: This method was evolved after a great deal of research conducted for the military services during World War II. It attempts to correct a raters tendency to give consistently high or consistently low ratings to all the employees. The use of this method calls for objective reporting and minimum subjective judgement. Under this method, the rating elements are several sets of pair phrases or adjectives (usually sets of four phrases two of which are positive, two negative) relating to job proficiency or personal qualifications. The rater is asked to indicate which of the four phrases is most and least descriptive of the employee. Forced Distribution Method: This method was evolved by Joseph Tiffin after statistical work. This system is used to eliminate or minimise raters bias, so that all personnel may not be placed at the higher end or at the lower end of the scale. It requires the rater to appraise an employee according to a predetermined distribution scale. Under this system, it is assumed that it is possible and desirable to rate only two factors, viz., job performance and promotability. For this purpose, a five-point performance scale is used without any descriptive statement. Employees are placed between the two extremes of good and bad job performances. In addition to job performance, employees are rated for promotability. A three-point scale is often used for this purpose:
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(a) (b) (c)
Very likely promotional material; May or may not be promotional material; and Very unlikely to be promotional material
The good point of this system is that by forcing the distribution in this manner, the problem of different appraisers using different parts of the scale is avoided. Second this method tends to eliminate or reduce bias; but its use in wage administration leads to low morale and low productivity. Third, the method is highly simple to understand and very easy to apply in organisations. Checklist: Under this method, the rater does not evaluate employee performance; he supplies reports about it and the final rating is done by the personnel department. A series of questions are presented concerning an employee to his behaviour. The rater, then, checks to indicate if the answer to a question about an employee is positive or negative. The value of each question may be weighed equally or certain questions may be weighed more heavily than others. An example of a checklist is given below: (1) (2) (3) (4) (5) (6) (7) (8) (9) Is the employee really interested in his job? Is regular on his job? Is he respected by his subordinates? Does he show uniform behaviour to all? Does he keep his temper? Is he always willing to help other employees? Does he follow instructions properly? Does he give recognition and praise to employees for work done well? Is the equipment maintained in order?
(10) Does he ever make mistakes? Free Essay Method: Under this method, the supervisor makes a free form, open-ended appraisal of an employee in his own words and puts down his impressions about the employee. He takes note of these factors: (a) (b) (c) (d) (e) (f) (g) (h) Relations with fellow supervisors and personnel assigned to him General organisation and planning ability Job knowledge and potential Employee characteristics and attitudes Understanding and application of company policies and procedures Production, quality and cost control Physical conditions Development needs for future
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The description is always as factual and concrete as possible. No attempt is made to evaluate an employee in a quantitative manner. There are several advantages of this method. An essay can provide a good deal of information. The explanations will give specific information about the employee, and can reveal even more about the supervisor. Critical Incident Method: The essence of this system is that it attempts to measure workers performance in terms of certain events or episodes that occur in the performance of the ratees job. These events are known as critical incidents. The basis of this method is the principle that there are certain significant acts in each employees behaviour and performance which make all the difference between success and failure on the job. The supervisor keeps a written record of the events (either good or bad) that can easily be recalled and used in the course of a periodical or formal appraisal. Feedback is provided about the incidents during performance review session. Various behaviours are recorded under such categories as the type of job, requirements for employees, judgement, learning ability, productivity, precision in work, responsibility and initiative. The critical incidents are discovered after a thorough study of the personnel working on a job. The collected incidents are than ranked in order of frequency and importance. This method provides an objective basis for conducting a discussion of an individuals performance. Vague impressions and general remarks are avoided, for the supervisor is trained to record accurately the actual incidents from the daily activities of an employee. This approach reduces the recency effect (most recent incidents get too much emphasis) of most performance ratings. Group Appraisal Method: Under this method, employees are rated by an appraisal group, consisting of their supervisor and three or four other supervisors who have some knowledge of their performance. The supervisor explains to the group the nature of his subordinates duties. The group then discusses the standards of performance for that job, the actual performance of the job-holder, and the causes of their particular level of performance, and offers suggestions for future improvement, if any. The advantage of this method is that it is thorough, very simple and is devoid of any bias, for it involves multiple judges. But it is very time-consuming. Field Review Method: Under this method, a trainer employee from the personnel department interviews line supervisors to evaluate their respective subordinates. The appraiser is fully equipped with definite test questions, usually memorised in advance, which he puts to the supervisor. The supervisor is required to give his opinion about the progress of his subordinates, the level of the performance of each subordinate, his weaknesses, good points, outstanding ability, promotability, and the possible plans of action in cases requiring further consideration. The questions are asked and answered verbally. The appraiser takes detailed notes of the answers, which are then approved by the supervisor and placed in the employees personal folder.
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Newer or Modern Methods of Appraisal and Career Development The traditional methods emphasize either on the task or the workers personality, while making an appraisal. In order to bring about a balance between these two, modern methods have been developed. Of such methods, the most important are: 1. 2. 3. 4. Appraisal by Results or Management By Objectives. Assessment Centre Method. Human Asset Accounting Method. Behaviourally Anchored Rating Scales.
Appraisal by Results or Management By Objectives (MBO) This method has been evolved by Peter Drucker. Management by objectives can be described as a process whereby the superior and subordinate managers of an organisation jointly identify its common goals, define each individuals major areas of responsibility in terms of results expected of him and use these measures as guides for operating the unit and assessing the contributions of each of its members. It consists of five basic steps as follows: 1. 2. 3. 4. 5. Set organisation goals Joint goal setting Performance Reviews Set check posts Feedback
Assessment Centre Method Under this method, many evaluators join together to judge employee performance in several situations with the use of a variety of criteria. It is used mostly to help select employees for the First Level (the lowest) supervisory positions. Assessments are made to determine employee potential for purposes of promotion. The assessment is generally done with the help of a couple of employees and involves a paper and pencil test, interviews and situational exercises. Human Asset Accounting Method The human asset accounting method refers to activity devoted to attaching money estimates to the value of a firms internal human organisational and its external customer goodwill. If able, well-trained personnel leave a firm, the human organisation is worthless; if they join it, its human assets are increased. If distrust and conflict prevail, the human enterprise is devalued. If teamwork and high morale prevail, the human organization is a very valuable asset.
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The current value of a firms human organisation can be appraised by developed procedures by undertaking periodic measurements of key causal and intervening enterprise variables. The key causal variables include the structure of an organisations management policies decisions, business leadership, strategies, skills and behaviour. The intervening variables reflect the internal state and health of an organisation. They include loyalties, attitudes, motivations, and collective capacity for effective interaction, communication and decision-making. These two types of variable measurements must be made over several years to provide the needed data for the computation of the human asset accounting. Behaviourally Anchored Rating Scales (BARS) This is a new appraisal technique which has recently been developed. Its supporters claim that it provides better, more equitable appraisals as compared to other techniques. The procedure for BARS is usually five stepped. 1. Generate Critical Incidents. 2. Develop Performance Dimensions. 3. Reallocate Incidents. 4. Scale of Incidents. 5. Develop Final Instruments. Check Your Progress 1. Define performance appraisal. performance appraisal? What are the other terms used to denote
3. What is MBO?
Let Us Sum Up Performance appraisal is otherwise called merit rating. It provides information about the individuals work behaviour. Performance appraisal is considered significant for organizations as various decisions about the employees work behaviour are taken based on the performance appraisal information. There are many traditional methods of performance appraisal as well as modern methods. Model Question 1. List out and explain the various performance appraisal methods.
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LESSON-12 JOB EVALUATION AND MERIT RATING

Contents 12.0 12.1 12.2 12.3 12.4 12.5 12.6 12.7 Aims and Objectives Definition of Job Evaluation Objectives of Job Evaluation Principles of Job Evaluation Programme Basic Procedure of Job Evaluation Advantages of Job Evaluation Limitation of Job Evaluation Basic Job Evaluation Methods/Systems
12.0
AIMS AND OBJECTIVES
Job evaluation is the output provided by job analysis. Job evaluation uses the information of job analysis to evaluate each job-valuing its components and ascertaining relative job worth. It involves a formal and systematic comparison of jobs in order to determine the worth of one job relative to another, so that a wage or salary hierarchy results. After learning this lesson you will be able to understand The meaning and objectives of job evaluation Basic principles of job evaluation on which job evaluation is done The steps in job evaluation The common methods of job evaluation.
12.1
DEFINITION OF JOB EVALUATION
We may define job evaluation as a process of analysing and describing positions, grouping them and determining their relative value by comparing the duties of different positions in terms of their different responsibilities and other requirements.
12.2
OBJECTIVES OF JOB EVALUATION
The important objectives of Job Evaluation are:
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To secure and maintain complete, accurate and impersonal descriptions of each distinct job or occupation in the entire plant To provide a standard procedure for determining the relative worth of each job in a plant To determine the rate of pay for each job which is fair and equitable with relation to other jobs in the plant, community or industry To ensure that like wages are paid to all qualified employees for like work To promote a fair and accurate consideration of all employees for advancement and transfer To provide a factual basis for the consideration of wage rates for similar jobs in a community and in an industry To provide information for work organisation employees selection, placement, training and numerous other similar problems
12.3
PRINCIPLES OF JOB EVALUATION PROGRAMME
There are certain broad principles, which should be kept in mind before putting the job evaluation programme into practice. These principles are: Rate the job and not the man. Each element should be rated on the basis of what the job itself requires The elements selected for rating purposes should be easily explainable in terms and as few in number as will cover the necessary requisites for every job without any overlapping The elements should be clearly defined and properly selected Any job rating plan must be sold to foremen and employees. The success in selling it will depend on a clear-cut explanation and illustration of the plan Foremen should participate in the rating of jobs in their own departments Maximum co-operation can be obtained from employees when they themselves have an opportunity to discuss job ratings In talking to foremen and employees, any discussion of money value should be avoided. Only point values and degrees of each element should be discussed Too many occupational wages should not be established. It would be unwise to adopt an occupational wage for each total of point values
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12.4
BASIC PROCEDURE OF JOB EVALUATION
The following steps should be taken to install a job evaluation programme: Analyse and prepare Job Description: This requires the preparation of a job description and also an analysis of job requirements for successful performance Select and prepare a Job Evaluation Plan: This means that a job must be broken down into its component parts, i.e., it should involve the selection of factors, elements needed for the performance of all jobs for which money is paid, determining their value and preparing written instructions for evaluation Classify Jobs: This requires grouping or arranging jobs in a correct sequence in terms of value to the firm, and relating them to the money terms in order to ascertain their relative value Install the Programme: This involves explaining it to employees and putting it into operation Maintain the Programme: Jobs cannot continue without updating new jobs and job changes in obedience to changing conditions arid situations
12.5
ADVANTAGES OF JOB EVALUATION
Following are the advantages of job evaluation: Job evaluation is a logical and, to some extent, an objective method of ranking jobs relative to one another. It may help in removing inequalities in existing wage structures and in maintaining sound and consistent wage differentials n a plant or industry In the case of new jobs, the method often facilitates fitting them into the existing wage structure The method helps in removing grievances arising out of relative wages; and it improves labour-management relations and workers morale. In providing a yardstick, by which workers complaints or claims can be judged, the method simplifies discussion of wage demands and enables differences in wages to be explained and justified The method replaces the many accidental factors, occurring in less systematic procedures, of wage bargaining by more impersonal and objective standards, thus establishing a clear basis for negotiations The method may lead to greater uniformity in wage rates. Thus simplifying wage administration
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The information collected in the process of job description and analysis may also be used for the improvement of selection, transfer and promotion procedures on the basis of comparative job requirements Such information also reveals that workers are engaged in jobs requiring less skill and other qualities than they possess, thereby pointing to the possibility of a making more efficient use of the plants labour
12.6
LIMITATION OF JOB EVALUATION

Though many ways of applying the job evaluation technique are available, rapid changes in technology and in the supply and demand of particular skills have given rise to problems of adjustment. These need to be probed Substantial differences exist between job factors and the factors emphasised in the market. These differences are wider in cases in which the average pay offered by a company is lower than that prevalent in other companies in the same industry or in the same geographical area A job evaluation frequently favours groups different from those which are favoured by the market Job factors fluctuate because of changes in production technology, information systems, and division of labour and such other factors. Therefore, the evaluation of a job today is made on the basis of job factors, and does not reflect the time job value in future. In other words, continuing attention and frequent evaluation of a job are essential Higher rates of pay for some jobs at the earlier stages than other jobs or the evaluation of a higher job higher in the organisational hierarchy at a lower rate than another job relatively lower in the organisational hierarchy often give rise to human relations problems and lead to grievances among those holding these jobs When job evaluation is applied for the first time in any organisation, it creates doubts and often fears in the minds of those whose jobs are being evaluated. It may also disrupt the existing social and psychological relationships A large number of jobs are called red circle Jobs. Some of these may be getting more and others less than the rate determined by job evaluation Job evaluation takes a long time to install requires specialised technical personnel, and may be costly When-job evaluation results in substantial changes in the existing wage structure, the possibility of implementing these changes in a relatively short period may be restricted by the financial limits within which the firm has to operate
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12.7
BASIC JOB EVALUATION METHODS/SYSTEMS
There are four basic, traditional systems of job evaluation: (1) the ranking system; (2) the grading or job classification system; (3) the point system; and (4) the factor comparison-system. The first two systems are popularly known as the non-analytical or non-quantitative or summary systems, because they utilise nonquantitative methods of listing jobs in order of difficulty and are, therefore, simple. The last two systems are called the analytical or quantitative systems, because they use quantitative techniques in listing the jobs. They are more complex and are time- consuming. 1. The Ranking System Under this system all jobs are arranged or ranked in the order of their importance from the simplest to the hardest, or in the reverse order, each successive job being higher or lower than the previous one in the sequence. It is not necessary to have job descriptions, although they may be useful. Sometimes, a series of grades or zones are established, and all the jobs in the organisation are arranged into these. A more common practice is to arrange all the jobs according to their requirements by rating them and then to establish the group or classification. The usually adopted technique is to rank jobs according to the whole job rather than a number of compensable factors. The following five steps are involved in system: Step 1: Preparation of job description, particularly when the ranking of jobs is done by different individuals and there is a disagreement among them. Step 2: Selection of Raters, jobs may be usually ranked by department or in Clusters (i.e., factory workers, clerical workers, menials, etc). This eliminates need for directly comparing factory jobs and clerical jobs. Step 3: Selection of rates and key jobs. Usually, a series of key jobs or benchmark jobs (10 to 20 jobs, which include all major departments anti functions) are first rated; then the other jobs are roughly compared with these key jobs to establish a rough rating. Step 4: Ranking of all jobs. Each job is then compared in detail with other similar jobs to establish its exact rank in the scale. For this each rater may be given a set of index card, each of which contains a brief description of a job. These jobs are then ranked from lowest to highest or from highest to the lowest are ranked first and then the next highest and next lowest and so forth until all the cards have been ranked. Step 5: Preparation of job classification from the rating: The total ranking is divided into an appropriate number of groups or classifications, usually 8 to 12. All the jobs within a single group or classification receive the same wage or range of rates.
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The ranking system of job evaluation usually measures each job in comparison with other jobs in terms of the relative importance of the following five factors: Supervision and leadership of subordinates Co-operation with associates outside the line of authority Probability and consequences of errors (in terms of waste, damage to equipment, delays, complaints, confusion, spoilage of product. discrepancies etc) Minimum experience requirement Minimum education required
2. Job Classification or Grading Method Under this system, a number of pre-determined grades or classifications are first established by a committee and then the various jobs are assigned within each grade or class. Grade descriptions are the result of the basic job information which is usually derived from a job analysis. After formulating and studying job descriptions and job specifications, jobs are grouped into classes or grades which represent different pay levels ranging from low to high. Common tasks, responsibilities, knowledge and experience can be identified by the process of job analysis. Certain jobs may then be grouped together into a common grade or classification. General grade descriptions are written for each job classification, and finally these are used as a standard for assigning all the other jobs to a particular pay scale. The following five steps are generally involved: The preparation of job descriptions, which gives us basic job information, usually derived from a job analysis. The preparation of grade descriptions, so that different levels or grades of jobs may be identified. Each grade level must be distinct from the grade level adjacent to it; at the same time, it should represent a typical step in a continuous way and not a big jump or gap. After establishing the grade level, each job is assigned to an appropriate grade level on the basis of the complexity of duties, non-supervisory responsibilities, and supervisory responsibilities. Selection of grades and key jobs. About 10 to 20 jobs are selected, which include all the major departments and functions and cover all the grades. Grading the key jobs. Key jobs are assigned to an appropriate grade level and their relationship to each other studied. Classification of all jobs. Jobs are classified by grade definitions. All the jobs in the same grade receive the same wage or range of rates.
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3. The Points System This method is the most widely used type of job evaluation plan. it requires identifying a number of compensable factors i.e., various characteristics of jobs and then determining degree to which each of these factors is present in the job. A different number of points is usually assigned for each degree of each factor. Once the degree to each factor is determined, the corresponding number of points of each factor is added and an overall point value is obtained. The point system is based on the assumption that it is possible to assign points to respective factors which are essential for evaluating an individuals job. The sum of these points gives us an index of the relative significance of the jobs that are rated. This system requires a detailed examination of the jobs. The steps in this method followed are: Step 1: The jobs have to be determined first which are to be evaluated. They are usually clustered. The jobs which require (i) similar activities, (ii) the same worker characteristics or traits (corresponding machines, tools, materials and instruments) and work on the same kind of material (say wood or metal) are placed in the same cluster or family. Step 2 : For the purpose, a pre-determined number of factors are arbitrarily selected by the raters. The number of factors used varies a great deal from company to company, ranging from as few as 3 to as many as 50, although most companies use less than 15. Sometimes, only three factors (job conditions, physical ability and mental requirements) may be used. Another company may use 4 factors (skill, effort, responsibility and job conditions). As far as possible, the factors selected are such as are common to all the jobs. The common factors are: Education and training; experience; physical skills and effort; planning for the supervision of others: external contacts, internal contacts: confidential information and working conditions. Moreover, the factors which overlap in their meaning are avoided and factors which are unique and relative to each other described in terms of varying degrees. They should also be so defined and described that everyone associated with the plan gets the same meaning of the words that are used. Step 3: The next step is to break down each factor into degrees or levels, and to assign a point value to each level or degree. The point to note is that the major factors are assigned total points and then each of these factors is broken up into sub-groups (with written definitions for each), and these sub-groups are assigned points within the total established for the major group. Step 4: Determination of relative values or weights to assign to each factor. For each job or cluster of jobs some factors are more important than others. e.g., for executives, the mental requirements factor would carry more weight than physical requirements. The opposite might be true of factory jobs.
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Step 5: The next step is to assign money values to points. For this purpose, points are added to give the total value of a job; its value is then translated into terms of money with a pre-determined formula. 4. The Factor Comparison Method Under this system, jobs are evaluated by means of standard yardsticks of value. It entails deciding which jobs have more of certain compensable factors than others. The major steps in this system consist of the following: Step 1: Clear-cut job descriptions are written and job specilisations then developed, preferably in terms of compensable factors. Step 2: Selecting of Key-jobs. Such jobs are those jobs which represent the range of jobs under study; and for which pay is determined to be standard or reference points and for which there is no controversy between the management and the employees. Step 3: Ranking of Key jobs. Several different members of the Job Evaluation Committee rank the key jobs on each of the five factors (mental requirements, physical requirements, skill, responsibility and working conditions). Ranking is made individually and then a meeting held to develop a consensus (among raters) on each job. Step 4: Valuing the Factors. The basic pay for each key job is allocated to each factor. Pay for such jobs should range from about the lowest to at or near the highest, and there must be complete agreement on job selected. Usually, 15 to 20 jobs are chosen against which to evaluate all the other jobs. Step 5: Comparing all jobs with key Jobs: All the other jobs are then compared with the key jobs, factor by factor, to determine their relative importance and position in the scale of jobs, to determine also their money value. This identical process is repeated for all the other factors. The pay rate assigned to a job is obtained by adding the determined amounts as indicated by the money values shown in the five scales that individually set a job money value in relative comparison to fixed key jobs. Step 6: Establishing the Monetary Unit Value for all jobs: Monetary values are assigned to each factor of every key job. This should reflect a range from the lowest to the highest.
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Check Your Progress 1. Define Job evaluation.
Let Us Sum Up Job evaluation is the process of determining the relative worth of a job. Job evaluation has certain objectives and specific principles. Job evaluation follows definite steps such as job description, job evaluation plan, classifying jobs, installing programmes and maintaining programmes. Ranking, job grading, points system and factor comparison method are the basic methods of job evaluation. Job evaluation itself and the methods of job evaluation have both advantages and disadvantages. Model Questions 1. 2. 3. 4. What are the objectives of job evaluation? Explain. Describe the basic principles of job evaluation. Examine the steps in job evaluation process. Elaborate the methods of job evaluation.
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LESSON-13 PROMOTIONS, TRANSFERS AND DEMOTION

Contents 13.0 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 Aims and Objectives Meaning of Promotion Types of Promotion Purposes of Promotion Policy of Promotion Transfer Need for Transfers Transfer Policy Types of Transfers Demotion
13.10 Causes of Demotion 13.11 Demotion Policy
13.0
AIMS AND OBJECTIVES
Promotions, transfers and demotions are the employees movement within and between organizations. Recognising the skill and knowledge of the employees promotions, transfers and demotions are exercised in the organization. In this lesson The meaning, types, purpose and policy of promotion Meaning of transfers, need for transfers, transfer policy and types of transfers Meaning and causes of demotion and demotion policy are being discussed.
Introduction Just as human lives swing between two poles, viz., movement and settlement, so do employees also. Employees move within an organisation, laterally or vertically, for a variety of reasons. Following are the main reasons for employees movement within an organisation: To improve the effectiveness of the employees to the organisation To satisfy both employee and organisational needs To provide for career and succession planning
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To effect changes in jobs and organisational structure To ensure discipline and make orgamsational rewards contingent on employee performance
The lateral or vertical movement of employees within the organisation is called internal mobility. It may take place in the form of promotion, demotion and transfer each of which are briefly discussed. Some employees separate themselves from the organisation for reasons like better prospects, retirement, termination, etc. This is called employee separation, which is also discussed separately later.
13.1
MEANING OF PROMOTION
Promotion is vertical movement of an employee within the organisation. In other words, promotion refers to the upward movement of an employee from one job to another higher one, with increase in salary, status and responsibilities. Promotion may be temporary or permanent, depending upon the needs of the organisation. There can be dry promotion also where an employee is assigned to a higher level job without increase in pay. An example of dry promotion is a University Professor made Head of the Department with no increase in salary. Promotion has an in-built motivational value as it elevates the authority, power and status of an employee within an organisation. It is considered good personnel policy to fill vacancies in a higher job through promotions from within because such promotions provide an inducement and motivation to the employees and also remove feelings of stagnation-and frustration.
13.2
TYPES OF PROMOTION
Promotion given to employees in an organisation can be classified into three types: 1. Horizontal Promotion: When an employee is shifted in the same category, it is called horizontal promotion. A junior clerk promoted to senior clerk is such an example. It is important to note that such promotion may take place when an employee shifts within the same department, from one department to other or from one plant to another plant. 2. Vertical Promotion: This is the kind of promotion when an employee is promoted from a lower category to higher category involving increase in salary, status, authority and responsibility. Generally; promotion means vertical promotion.
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3. Dry Promotion: When promotion is made without increase in salary, it is called dry promotion. For example, a lower level manager is promoted to senior level manager without increase in salary or pay. Such promotion is made either there is resource/fund crunch in the organisation or some employees hanker more for status or authority than money.
13.3
PURPOSES OF PROMOTION
The following are the purposes or objectives of promotion: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. To recognize an employees skill and knowledge and utilize it to improve the organisational effectiveness. To reward and motivate employees to higher productivity. To develop competitive spirit and inculcate the zeal in the employees to acquire skill, knowledge etc. To promote employees satisfaction and boost their morale. To build loyalty among the employees toward organisation. To promote good human relations. To increase sense of belongingness. To retain skilled and talented people. To attract trained, competent and hard working people. To impress the other employees that opportunities are available to them too if they also perform well.
It is clear that promotion benefits both employees and the employer. However, it needs to be made with a great caution because wrong promotion may invite implications of one type or other for the organisation. So to say, promotion is a double-edged weapon. Hence, every organisation needs to evolve and implement a suitable promotion policy for its employees.
13.4
POLICY OF PROMOTION
The following characteristics make a promotion policy as sound and good policy: 1. 2. 3. 4. It must provide equal opportunities for promotion across the jobs, departments, and regions. It must be applied uniformly to all employees irrespective of their background. It must be fair and impartial. The basis of promotion must be clearly specified and made known to the employees.
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5.
It must be correlated with career planning. Both quick (bunching) and delayed promotions must be avoided as these ultimately adversely affect the organisational effectiveness. Appropriate authority must be entrusted with the task of making final decision. Promotion must be made on trial basis. The progress of the employee must be monitored. In case, the promoted employee does not make the required progress, provision must be therein the promotion policy to revert him/her to the former post. The policy must be good blending of promotions made from both inside and outside the organisation.
6. 7.
8.
Promotion can be made on various bases. Following are the major ones: Seniority i.e., length of service Merit, i.e., performance Educational and technical qualification Potential for better performance Career and succession plan Vacancies based on organisational chart Motivational strategies like job enlargement Training
As a matter of fact, no single basis of promotion is acceptable and applicable to all organisations. Every basis has its strengths and weaknesses. For example, while promotion on the basis of seniority gives satisfaction to the senior employees, it causes frustration to the talented ones. Similarly, promotion based on merit motivates competent employees to work hard while trade unions oppose it on the justification of its subjectivity. In India, promotion in the government departments is made on the basis of seniority of the employees. In case of private organisations, merit is generally used as a basis for promoting employees. Here, the promotion policy is to promote the best one available
13.5
TRANSFER
A transfer refers to lateral movement of employees within the same grade, from one job to another. According to Flippo, a transfer is a change in the job (accompanied by a change in the place of the job) of an employee without a change in responsibilities or remuneration. Transfer differs from promotion in the sense that the latter involves a change of job involving increase in salary, authority, status and responsibility, while all these remain unchanged/stagnant in the case of former. Also, transfers are frequent and regular whereas promotions are infrequent, if not irregular.
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Transfer may be initiated either by the company or the employee. In practice, the company may transfer the employee to the place where he/she can prove more useful and effective. Similarly, employee may initiate transfer to a location where he/she is likely to enjoy greater satisfaction. Transfer could be permanent, temporary or ad hoc to meet emergencies. Usually, permanent transfers are made due to changes in work load or death, retirement, resignation, etc. of some employee. As regards temporary transfer, it arises mainly due to ill health, absenteeism, etc. of some employee. Transfer decisions may be perceived as negative or positive depending upon an individuals personal preferences, needs and aspirations. For example, an organisation may consider transfer from Guwahati Regional Office to Delhi Head Office as positive and reward because it will enable the employee to broaden his/her knowledge and work experience. On the contrary, the employee may look down upon it as it breaks ties with his people and community in Guwahati. Sometimes, transfers are used as an instrument for victimizing the employees by management. Realizing it, provisions are made by constituting Labour Courts to set aside transfer orders proved as management strategy to victimize employees. In order to make transfers useful for employee and the company, some organisations have clear agreements with trade unions for the transfer of unionized staff especially on promotions. There are some public sector organisations like Minerals and Metals Trading Corporation (MMTC) who have entered into agreements with employees for creating two cadres of officers, namely, Local Officers and All India Officers wherein promotions to and within the former are less accelerated than in the latter, but do not entail transfer.
13.6
NEED FOR TRANSFERS
The need for making transfer is left for various reasons as listed below: 1. To Meet Organisational Needs: Changes in technology, volume of production, production schedule, product line, quality of products, organisational structure, etc. necessitate an organisation to reassign jobs among employees so that right employee is placed on the right job. To Satisfy Employee Needs: Employees may request for transfer in order to satisfy their desire to work in a particular department, place and under some superiors. Personal problems of employee like health, family circumstances and interpersonal conflicts may also necessitate transfer. To Better Utilize Employee: When an employee is not performing satisfactorily on one job and management thinks that his/her capabilities would be utilized better elsewhere, he/she may be transferred to other job. To Make the Employee More Versatile: In some organisations like banks, employees after working on a job for a specified period are transferred to other job with a view to widen their knowledge and skill and also reduce monotony. This is also called job rotation.
2.
3.
4.
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5.
To Adjust the Workforce: Work force can be transferred from the departments/plants where there is less work to the departments/plants where more work is. To Provide Relief: Transfers may be made to give relief to the employees who are overburdened or doing hazardous work for long period. To Punish Employee: Management may use transfer as an instrument to penalize employees who are indulged in undesirable activities. As a disciplinary action, employees are transferred to remote and far-flung areas.
6. 7.
13.7
TRANSFER POLICY
Transfer involves costs as well. Therefore, every organisation should have a just and impartial transfer policy for its employees. Transfers should then be affected according to such policy only. In fact, a good and fair transfer policy serves as a guide-post to the manager in affecting transfers as and when required in the overall interest of the organisation. A good transfer policy should satisfy the following requirements: 1. Specify the circumstances under which transfers will be made. These should be in writing and should be communicated to the employees. For example, defence personnel and government employees are subjected to transfer once in three years. The employees in these organisations know when they are due for a transfer and are prepared for it. Specify the basis for transfer i.e., whether transfer will be made on the basis of seniority or skill and competency or on any other basis. Decide the authority which would handle transfers. Intimate the fact of transfer to the person concerned well in advance. Specify the jobs to which transfers will be made and duties and salary on assumption of new jobs should also be clarified. Clarify whether transfer is permanent or temporary. Indicate whether transfers can be made within a department or between departments or between units. Not to be made frequent and not for the sake of transfer only.
2. 3. 4. 5. 6. 7. 8.
However, one should not expect for a uniform transfer policy in all the organisations. Depending on the type, kind and size of the organisation, transfer policy is subject to vary from organisation to organisation. In any case, a good transfer policy should be consistent with the overall objectives of the organisation.
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13.8
TYPES OF TRANSFERS
Employee transfers may be classified into following types: i. Production Transfer: Such transfers are made when labour requirements in one division or branch is declining. The surplus employees from such division are transferred to those divisions or branches where there is shortage of employees. Such transfers help avoid lay off and stabilize employment. ii. Remedial Transfer: Such transfers are affected to correct the wrong selection and placement of employees. A wrongly placed employee is transferred to more suitable job. Such transfers protect the interest of the employee. iii. Replacement Transfer: Replacement transfers are similar to production transfers in their inherent, i.e., to avoid layoffs. Replacement transfers are affected when labour requirements are declining and are designed to replace a new employee by an employee who has been in the organisation for a sufficiently long time. The purpose of these transfers is to retain long service employees in the organisation and also give them some relief from the heavy pressure of work. iv. Versatility Transfer: These transfers are also known as job rotation. In such transfers, employees are made move from one job to another to gain varied and broader experience of work. It benefits both the employees and organisation. It reduces boredom and monotony and gives job enrichment to the employees. Also, employees versatility can be utilized by the organisation as and when needed. v. Shift Transfers: These transfers are affected in the organisations where work progresses for 24 hours or in shifts. Employees are transferred from one shift to another usually on the basis of mutual understanding and convenience. vi. Penal Transfer: Management may use transfer as an instrument to penalize employees involved in undesirable activities in the organisation. Employee transfer from ones place of convenience to a far-flung and remote area is considered as a penalty to the employee.
13.9
DEMOTION
Demotion is just the opposite of promotion. It is the downward movement of an employee in the organizational hierarchy with lower rank/status and pay. According to D.S. Beach, Demotion is the assignment of an individual to a job of lower rank and pay usually involving lower level of difficulty and responsibility.
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Demotion affects the status, pride, career and income of the employee. Research studies report that an employee who is demoted suffers from more severe jolt than it does when a junior employee supersedes him/her. It is used as a punitive measure in case of serious breaches of duty on the part of an employee. It is often a preliminary to a dismissal. Since demotion causes an insult and emotional jolts, it should be, therefore, used very tactfully and only in case of absolute necessity.
13.10 CAUSES OF DEMOTION

Demotion may be caused by several factors which may be beyond an employees control. Following are the important ones: i. Incompetence: When a promotee is found unable to meet the challenges posed by the new higher job, he may be demoted to jobs suitable to him to correct errors in promotion. It often happens in organisations that employees promoted on the basis of seniority and past experience are unable to adjust and cope with changes in technology, methods and practices. In other words, such promotees cannot meet the raised expectations substantially. ii. Adverse Business Conditions: At times, Circumstances and conditions like recession and other crisis may necessitate a business to combine departments and eliminate jobs. In fact, this feature is very much in sight and is on increasing also. In case of lay-offs and bumping process, junior employees may be retrenched and senior employees may be required to accept lower level jobs, until normalcy is restored. However, such a demotion is not a black mark against an employee. iii. Disciplinary Measures: Demotion is also used as a disciplinary measure against erring employees. It is a penalty imposed on employee for violation of company rules of conduct. Since demotion affects employee job satisfaction and morale, it should be used with a pinch of care and concern and that too when it is absolutely necessary. In order to use demotion properly, there must be an appropriate demotion policy.
13.11 DEMOTION POLICY

Demotion affects employees morale, job satisfaction and relationship with the employer. It may also turn the employee into mental wrecks. While effecting demotion in the organisation, therefore, the management should be extremely careful not to place itself on the wrong side of the fence. A systematic policy on demotion should contain the following five points:
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A clear and reasonable list of rules should be framed, violation of which would subject an employee to demotion This information should be clearly communicated to employees There should be a competent investigation of any alleged violation Once violations are proved, there should be a consistent and equitable application of the penalty, preferably by the immediate supervisor There should be provision for review
Check Your Progress 1. What is promotion?
.. 2. What is transfer? Why transfers are given?
3. What is demotion?
.. Let Us Sum Up Promotion is a vertical movement of an employee within an organization. Promotion may be of three types, viz. horizontal promotion, vertical promotion and dry promotion. A transfer is a lateral movement of employees within the same grade, from one job to another. Every organization has its own policy of transfer and transfer is of different types. The downward movement of an employee in the organizational hierarchy with lower rank/status and pay is demotion. Employee incompetence, adverse business conditions and disciplinary measures are the major causes of demotion. Model Questions 1. 2. 3. Write and essay on promotions in the organizations. Discuss the basic issues in transfers in the organizations. Write short note on demotion.
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LESSON-14 HUMAN RELATIONS

Contents 14.0 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 Aims and Objectives Importance of Human Resources Defining Human Relations Human Relations: An Inter-disciplinary Approach Objectives of Human Relations Brief History of Human Relations Movement Factors Responsible for Growth of Human Relations Scope of Human Relations Basic Themes in Human Relations Fundamental Concepts of Human Relations
14.10 Philosophy of Human Relations 14.11 Human Relations Assumptions 14.12 Improvement in Human Relations
14.0
AIMS AND OBJECTIVES
In the present context, human relations are significant to the organizations to keep the human force satisfied and achieve set objectives. In this lesson the basic aspects of human relations are discussed and after reading this lesson you will be able to explain Meaning and objectives of human relations Historical development of human relations movement Scope of human relations in the organization Basic concepts and assumptions of human relations movement.
14.1
IMPORTANCE OF HUMAN RESOURCES
The handling of physical, material and financial resources is quite different from that of human beings because the latter are not standardised, interchangeable or passive-like the resources of the materials or of inanimate objects. Human beings differ from one another in their basic mental abilities, personality, motor abilities, interests, skills, intelligence, attitudes, aspirations, energy, education,
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qualifications, training, experience, and behaviour. Because of these traits or qualities, human beings are complex in their behaviour and in their psychological make-up; and when they interact with one another in a group or an organisation, this complexity is multiplied. Hence, modern management has been increasingly aware of the tact that human factor is the most important of all factors of production.
14.2
DEFINING HUMAN RELATIONS
Human relations is the art of getting along with people either as individuals or as a group. It is the study of the practical attempts to achieve the two separate goals of: (i) greater productivity at work, and (ii) greater human satisfaction with the organisation. The main characteristics of human relations are: 1. Human relations are an integral process through which an individuals attitude and work are integrated with a view to effecting a willing cooperation on his part in the achievement of the interests of an organisation as a whole. Members of the organisation contribute their mite to get individual and group satisfaction, i.e., the producers must receive satisfaction in the same way as the consumers. The satisfaction desired by an employee may be economic (in the form of monetary benefits), social (in the form of acceptance by, and belongingness to, the group), and psychological (in the form of pride, prestige, status, etc.).
2.
3.
Human relations are very important because of the many problems and conflicts which regularly plague people in an organisation. The purpose of human relations concept is not to enable you to discover clever techniques for winning friends and influencing people through personality development, nor to enable you to manipulate people as though they were puppets, but to assist you in working more effectively with other people in organisations.
14.3
HUMAN RELATIONS: AN INTER-DISCIPLINARY APPROACH
Human relations is an integrated body of knowledge composed of several elements from different disciplines. Human relations is an interdisciplinary field because the study of human behaviour in an industrial or business setting must include the research of several social and physical sciences if it is to be coherent. The inter-disciplinary approach requires an understanding of the separate contributions made by other disciplines and then the integration of that information into a unified whole. Many fields have added separate and useful elements to the knowledge of human relations. Human relations are likewise
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concerned with the why of the people and their groups. Moreover, in the study of human relations, in addition to why, one also learns what can be done to anticipate, prevent or resolve conflict among organisational members.
14.4
OBJECTIVES OF HUMAN RELATIONS
Human relations encompasses two entirely different sets of objectivesthe goals of the organization and the goals of the people who work for the organisation. Organisational goals, such as productivity, growth and profit maximisation are influenced by non-human factors such as the organizations size, structure, complexity and degree of technical sophistication. Human goals, such as job satisfaction, recognition and career advancement are influenced by many different kinds of social and psychological factors, as well as by the organizational condition of work environment. Consequently, because human goals are affected by so many more variables than organisational goals, they are far more complex to deal with and more difficult to satisfy.
14.5
BRIEF HISTORY OF HUMAN RELATIONS MOVEMENT
The human relations movement became popular in the 1940s and early 1950s, when much attention began to be paid to the workers needs and in realising the importance of human beings in total productivity. This approach was a significant departure from the Taylorian Scientific Management approach. By the 1920, the image of the workers had changed considerably, for the new ideal which held that all workers were complex, unique beings whose individual skills and abilities could be measured, tested and trained. Three separate developmentsscientific management techniques, the struggles of trade unionists, and the rapidly changing technology, all led to increased acceptance of the idea of the worker as a person with multiple needs. It was about the 1920s that human relations brought to the attention of management the important role played by individuals in determining the success or failure of an organisation. Human relations theory, that was developed through the researches of the Elton Mayo, Carl Rogers, Kurt Lewin, Daniel Bell and C Wright Mills; and Chester I. Barnard, concentrated on the social environment surrounding the job. The human relations programme began when a group of researchers, from Harvard University, was invited to conduct studies at the Chicago Hawthorne Plant of Western Electric. These researches laid down the foundation of the relationship between productivity and physical working conditions. The Hawthorne studies conclusively showed, by quantitative measurements, that: (i) normal interactions of workers at work always create a social net work called the informal organisation, which exerts tremendous influence over workers behaviour patterns; (ii) the informal organisation frequently countermanded official orders passed down through the formal organization and consequently played a determining role in setting production rates; (iii) the workers, are not to
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be viewed as mere economic tools or as isolated units in the production process; but they had to be seen as complex human beings whose normal human interactions were bound to affect total production output, no matter how sophisticated the technological processes employed were. Elton Mayo stressed importance for an understanding of the needs of both management and workers and of the social aspects of work performances, etc. The message was that interpersonal relationships should be fostered for the fullest realisation of the potential of individuals and groups. He is rightly regarded as the founder of the human relations school.
14.6
FACTORS RESPONSIBLE FOR GROWTH OF HUMAN RELATIONS
The origin and progress of the human relations movement has been due to certain social and cultural forces working there, such: 1. Recognition of the dignity of the individual and his personality. The individual has a lot of freedom of choice and the idea of decision- making by one-self is deep rooted in the national tradition. A child is brought up to value independence and encouraged to think on his own and not to be dependent on parents. Virtual disappearance of owner managers and the growth of professional managers capable of managing according to professional code. Strong organisations of labour, at all levels, calling for higher skills in communication and participative behaviour on the part of the management. Shortage of labour led to skilled labour being treated as nearly irreplaceable. Hence, much greater care in utilising this scarce and valuable resource had to be thought of in the form of Human Relations. Higher standards of living of American labour. Since their physical and security needs were generally satisfied, increased participation alone could satisfy their emerging social and ego needs. The possible weakening of work ethics, requiring managers to develop new attitudes towards labour. The changing work environmentgreater specialisation and a larger scope of operationswhich require a greater degree of managerial effectiveness in working with and through workers. A significant increase in the general educational level of workers who, as a result, demanded more from their employers.
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14.7
SCOPE OF HUMAN RELATIONS
The scope of human relations springs up from the problems which have many different causes and perspectives. 1. Every person brings a unique, set of talents, ambitions and work experience to a job. These personal attributes change over time, often as a result of the degree of success or failure the person experiences in the work world. Matching so many unique sets of personal qualities to a standardised technology can create problems. The organisational aspects of a company, such as its size, geographic location, economic health, and degree of automation, define the scope of work and the activity in each work division. These frequently arbitrary structural definitions often cause difficulties in human relations. Innovations in technology and production methods generally require the restructuring of job roles and responsibilities. Radical changes in basic organisational structure can cause severe strains between workers and management and create intense problems in human relations. Promotion of individuals to positions of greater responsibility and authority generally creates a need for changed behaviour patterns between the new supervisors and their former peers which, in time can create human relations problems. Inexperienced workers may not be able to perform their roles or tasks in work groups in a competent manner. The time they take to adjust can not only create problems with production schedules, but can also create particular kinds of human relations problems between them and their coworkers and supervisors.
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The variety of causes of human relations problems lead to the conclusion that no one programme or single approach can create conditions for good human relations. Therefore, different kinds of programmes would be necessary for dealing with these different sets of problems.
14.8
BASIC THEMES IN HUMAN RELATIONS
The basic themes in human relation are related to communication, motivation, responsibility and empathy. Communication is the way in which information and understanding are transmittedit unifies group behaviour, and it provides the basic for group cooperation. If management cannot communicate effectively with employees, they cannot motivate or lead them. On the other hand, if workers cannot communicate well with the management, they cannot perform their jobs properly, nor can they receive adequate recognition for their work. Lack of effective and good communication in organisation fails to satisfy people at work.
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Motivation implies total response of individuals to various motivating forces. People in organisations relate to each other in the ways they do because they are driven by psychological, social and economic forces that have the power to motivate them to behave in particular ways. It is through proper motivation that productivity can be increased and conflicts avoided. Responsibility presumes that management has the capacity to get work done through combined co-operative efforts of othersthrough communication, planning, coordinating and controlling the organizational affairs. Empathy is the ability to put oneself in some one elses place and to feel empathy for that persons motives and point of view. Lack of empathy is the primary cause of conflict in organisations and a barrier to communication.
14.9
FUNDAMENTAL CONCEPTS OF HUMAN RELATIONS
Human relations deals with a set of fundamental concepts revolving round the nature of people and the nature of organisations. I. The Nature of the People. Regarding people, there are four basic assumptions: individual differences, a whole person, caused behaviour (motivation), and the value of the person (human dignity). i. Individual Differences: Though people have much in common (as they become excited or they are grieved by the loss of a loved one), yet each person is different from the other in behaviour, thinking, attitude, likes and dislikes and other personal trait) Therefore, each individual needs attention or satisfaction of his desires in a particular way. Because of individual differences, organisational behaviour philosophy begins with the individual. Only a person can take responsibility and make decisions. A group is ineffective unless the individuals act therein. ii. A Whole Person: Organisations employ not only skill or brain of an individual but a person as a whole, because neither the skill nor the brain can be separated from him. The main purpose of the management is to develop a better person in terms of growth and fulfilment. Employees belong to many organisations other than their employer, and they play many roles outside the firm. Therefore, if the whole person can be improved, the benefits will accrue beyond the firm into the larger society in which each employee lives. iii. Caused Behaviour: Each individual can and is able to work but he may or may not be willing to work at all for want of fulfilment of some of his needs, or because of a certain work situation or out of mere indolence and lethargy, The management, therefore, should know why an individual is or is not willing to work, That is, he should understand that human behaviour
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has some cause. The cause of human behaviour is the result of an interaction between stimulus and a persons own interpretation of the stimuli. Actions of all people are goal-oriented and they are motivated not by what we think they ought to have but by what they themselves want. Until some type of motivation is there, the organisation cannot be made to run smoothly. iv. The Value of the Person: This concept confirms that people are to be treated differently from other factors of production, because they are of a higher order in the universe. They need to be treated with respect and dignity. Since organisational behaviour always involves people, ethical philosophy is involved in one way or another in each action. 2. The Nature of Organisation: The basic assumption is that the organisations are social systems and that they are formed on the basis of mutual interest. i. Social Systems: Since organisations are social systems, they are governed by social and psychological laws. Social roles and status of the people and their behaviour are influenced by their group as well as individual drives. Within the organisations, both the formal and informal social systems existwhich are interdependent and influenced by the other. The idea of social system makes the complexity of human behaviour in organisational situation. ii. Mutual Interest: This is concerned with the idea that people perceive organisations as a means to help them reach their goals, while at the same time organisations need people to help reach organisational goals. Mutual interest enables people to act co-operatively in meeting the organisational problems.
14.10 PHILOSOPHY OF HUMAN RELATIONS

The philosophy of human relations is expressed in the following ten basic tenets: i. The industry exists for the individual and not the individual for the industry. ii. An individual enterprise, in its operation, must take full account of the social, spiritual, and economic needs of the individual as an employee, as a stockholder, as a consumer, and as a member of society. iii. Sound company personnel policies and practices must be designed to safeguard and promote the rights, interests and welfare of employees as persons.
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iv. The relationship of the individual with the enterprise is a basic oneirrespective of whether there is or is not a trade union in the plant. The policies and activities of government, of labour unions, or of a management in the field of industrial relations must be judged in the light of whether they promote or jeopardise this basic relationship. v. Loyalty is not an either-or proposition. There is no basic inconsistency or incompatibility between an employees interest in his unit and his acceptance of a trade union membership. vi. The co-operation of the individual in the productive process must be won and deserved. It cannot be forced. vii. Employers should, as far as it lies within their control, work for and provide the maximum degree of economic security for their employees. viii. The individual employee, in respect of his status, rights, prospects for advancement, and his economic well-being, is inescapably linked with the success of the enterprise by which he is employed. ix. No policy, whether it he of the management or of labour, which violates or affronts the rights and freedoms of the individual, can long survive in a free society. x. A free society has the obligation to uphold and safeguard the rights and privileges of the individual and to see to it that this principle is effectively expressed in national policy.
14.11 HUMAN RELATIONS ASSUMPTIONS

There are certain fundamental assumptions in the human relations approach. They are: i. Human beings have not only physiological needs but have other needs too, which cannot be satisfied by money alone. For the fulfilment of these needs, an understanding of human behaviour is necessary. ii. People tend to do things that bring them satisfaction. The extent to which a given impulse moves a person to work depends on his or her condition or on how much that person is deprived of a particular need. iii. People differ from each other, both emotionally and otherwise; therefore, their behaviour is modified on the basis of their individual differences. iv. People belong to many organizations other than the organisation of their employer and they play a wide variety of roles outside their place of work. If the whole person can be improved, then advantages of this improvement will extend beyond the firm into the larger society in which each employee lives.
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v. People should be treated differently from the other factors of production because they are of a higher order. They should, therefore, be treated with respect, and nothing should be done to impair their dignity. At the same time, their aspirations should be respected and their abilities recognised. vi. A business organisation is a social system and, therefore, its activities are governed by social as well as psychological laws. The behaviour of the people is influenced by their group as well as their individual drives. Consequently, two types of social systems exist side by side in an organization-the formal and the informal. vii. An organisation needs people, but people also need an organisation, i.e., organisations are formed and maintained on the basis of some mutuality of interest among their members. People perceive an organisation as a means which helps them to attain their goals. At the same time, an organisation needs people to help reach organisational goals. viii. Employees have a variety of expectations to fulfil. For the satisfaction of these expectations, their role as workers and as members of a group should be recognised. ix. People feel satisfaction in work not only by getting money for it, but also prestige, status, independence, security, reward and respect.
14.12 IMPROVEMENT IN HUMAN RELATIONS

The management may adopt the following measures to maintain good relations with employees: 1. Create a congenial work atmosphere and pleasing surroundings, arrange for better job facilities by having better tools and appliances and faultless raw materials. These will improve working capacity; develop enthusiasm and a sense of loyalty towards the organisation. Work satisfaction not only instils a sense of responsibility in an employee but also creates a feeling of belongingness, of being wanted, and gives them psychological satisfaction. Provide abundant opportunities for, and better prospects of, personal advancement through promotion and growth in abilities through training and development programmes, and various other methods of job satisfaction. Recognise the worth of quality control, reduction in cost, full attendance at work, exemplary safety record, maintenance of discipline, and co-operation with the management in difficult times. Praise, appreciation and a word of thanks should be liberal when due.
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Delegate authority commensurate with responsibility and allow complete and active independence to employees. In other words, let them develop the feeling that they have a role to play in the total productive effort; that they have personal responsibility for the accomplishment of certain task; they are personally involved in their work; and that they are an important part of the organisation and not merely cogs in the machine which may be replaced at any time. Give an opportunity to employees to realise their need for status, position, prestige, for directing or ordering others as to what is to be done, for being admitted in the inner group. All these will satisfy their ego needs. Give personal attention to the problems of your subordinate, whether they arise out of his job environment or are of a personal nature, by giving them sympathetic consideration, patient hearing, proper counsel, and suggesting alternative proposals for their solution. Establish, implement and utilise proper machinery for the speedy removal of the grievances, complaints and dissatisfaction of employees. Any neglect of this may lead to a sudden outburst which may seriously impair the value of the relationship between the employer and the employees. The importance of grievance redressal procedure should not be underrated in improving industrial relations. Have a well-planned communication system so that any changes in the organisation may be known to employees and their views and reactions assessed. Keep the satisfaction of the common interests of the employees in mind and frame policies accordingly. This will ensure the smooth running of the organisation and make for the achievement of the desired goals. Eschew favouritism and nepotism, and avoid discrimination on grounds of caste, community, sex and religion, for these lower the employees interest in their work. Foster a democratic and permissive climate, i.e., get the work done by consultation, suggestion and participation rather than by resorting to authoritarianism, dictatorship, autocracy and coercion. Encourage participation in decision-making by giving your employees a say in the affairs of the organisation, so that they may have an opportunity to develop and grow, and thus improve their morale, skills and abilities. This participation, however, should be real and not a sham. A real participation may yield handsome dividends; a phony participation is apt to be more of a liability than an asset. Develop a positive attitude towards life and the organisation. Change the old assumptions, for they might not suit the changing circumstances. Believe that workers can and do accept responsibility provided that a suitable environment is created for the purpose.
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Provide an enlightened leadership and set examples by your own actions, and do not preach. Action is far more significant than words; therefore, when a procedure, policy or practice is laid down, you should faithfully follow it, both in letter and spirit. To influence others and win their confidence, it is essential to cultivate the following qualities: Honesty (freedom from fraud) Integrity (moral soundness, i.e., reasonable harmony and consistency of motives) Truthfulness (render reality accurately without the concealment of any material facts) Loyalty (develop a feeling which rouses and sustains allegiance) Tolerance (the disposition to allow the expression of beliefs, practices or habits differing from ones own) Fairness (freedom from partiality and a sense of fairplay and justice) Firmness (not to be easily shaken or disturbed and having a strong will power) Broadmindedness (devoid of any desire to victimise, intimidate, coerce, terrorise or indulge in character assassination)
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Good employee morale and a fair and reasonable wage and salary are complementary to each other. So develop a sound Wage and Salary Plan, keeping in a view the going rate in the market, the nature of the job, the difficulty or ease in performing it, the capacity to pay and the contribution of the worker. Fair and just compensation will give employees a reasonable standard of living and ensure their loyalty and continued good work.
Check Your Progress 1. Define human relations. .. .. ..
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Let Us Sum Up Human relation is the art of getting along with people either as individuals or as a group. It is an integrated body of knowledge composed of several demands from different disciplines. The objectives of human relations center on the human and organizational goals. Communication, motivation, responsibility and empathy are the basic themes in human relations. Human relations approach assumes the individual differences among people. Model Questions 1. 2. 3. 4. Write the human relations assumptions. Explain the objectives of human relations. Trace the history of human relations movement. Explain the scope of human relations in the organizations.
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LESSON-15 PUNISHMENT
Contents 15.0 15.1 15.2 15.3 15.4 15.5 15.6 Aims and Objectives Offences for Which Employees are Punished Steps in Disciplinary Proceedings Discharge of an Employee Code of Discipline in Indian Industry Disciplinary Actions: Penalties and Punishments Statutory Provisions Concerning Discipline
15.0
AIMS AND OBJECTIVES
As a result of custom and well-established practices, industrial penalties have become fairly standardised. They vary from mild to harsh from oral reprimand, written reprimand, loss of privileges and fines to temporary suspension, demotion or discharge. In this lesson the nature and types of punishments are discussed. After reading this lesson you will be able to describe The need for punishments to employees in the organization The basic steps in disciplinary proceedings Common forms of punishments The statutory provisions for punishments
Ordinarily, there are different penalties for the same offence when it is committed once, or the second time, or the third time. Minor offences generally call for the application of a progressive-penalty system. For an average person, an oral reprimand is enough to prevent repetition of the same offence. A written reprimand is administed when an offence is committed the second time, or when it is of a somewhat serious nature. The penalty of the loss of privilegeswithholding of increment, restriction on free movement in the place of work, withholding of the right to choose a machine or equipment with which, or on which, he would prefer to work, posting on an uncongenial job - may be imposed for such offences as tardiness, disobedience of the orders of the supervisor or of safety rules, or being unnecessarily noisy while at work. For more serious offences- for example, gross negligence of duty, repeated misbehaviour, or infliction of an injury on another employee, or fraud - the penalty may be temporary lay-off from one to seven days without pay.
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Demotion as a penalty is rarely used. But whenever this penalty is imposed, it is usually by top line executives. Discharge is, of course, the severest penalty that can be imposed upon an employee, and is awarded for such serious offences as fraud of a serious nature, sabotage, or working against the interests of the company. Even so, this weapon is used only as a last resort.
15.1
OFFENCES FOR WHICH EMPLOYEES ARE PUNISHED
A disciplinary action thus takes a variety of forms, varying from a simple oral reprimand to discharge. The offences for which an employee may be discharged are listed below; (i) Actions Most Frequently Leading to Discharge after a First Offence Theft Falsifying application for employment Possession of narcotics Willful damage to company property Possession of firearms or other weapons Falsifying records of work Fighting Offthejob criminal activities Failure to report injuries Unauthorised strike Subversive activity Drunk, while at work Punching another employees time card
(ii) Actions Most Frequently Leading to Discharge After a Second Offence Sleeping on the job Use of abusive or threatening language to a supervisor Insubordination Gambling
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(iii) (iv)
Action Most Frequently Leading to Discharge After Third Offence Horseplay Unauthorised soliciting Leaving work without permission Failure to use safety devices Smoking in unauthorised places Slowdown on production Action Most Frequently Leading to Discharge after a Fourth Offence Carelessness Chronic absenteeism Unexcused absence Unexcused or excessive lateness
Some executives have developed other ways of punishing an employee without actually discharging him. (a) The flow of work is so altered as to pass around a particular employee, so that he may have nothing to do; so that he may be bored and get fed up; and so submit his resignation.
(b) The post may be abolished and the duties attached to it may be distributed among other employees. After the concerned person has left the organisation, the duties may be re-assembled and a new employee may be hired to do the job. (c) The resignation of the employee may be secured by bringing some pressure to bear upon him or by threatening him with other and more serious consequences.
(d) The employee may be transferred to some other department. In other words, the hot potato may be pitched to someone else. (e) In higher positions, the undesirable person may be pushed up - that is, he may be promoted out of turn, may be made a consultant who is never consulted.
In this connection, it may be borne in mind that it may be enough for some employees to get a severe chewing out to ensure that they do not become guilty of any other violation in future. For others, even a casual reference to their deficiency may be adequate enough to ensure that they fall in line.
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Due Process One of the main criteria to be borne in mind while administering a disciplinary action is the concept of due process or just cause. In determining whether an employee is being disciplined for a just cause, the management has to consider three main factors. Did the employee, in fact, commit an act of indiscipline? If the management can prove this, the second consideration is: Should the employee be punished? In this connection, it should be noted that an employee should not be punished simply because he has been guilty infringement of a rule or a procedure. It may be that such an infringement has been made possible by custom, tradition or past practice. However, even if it is decided that the employees action, warrants punishment, the third consideration is that the penalty to be imposed should be commensurate with the nature and gravity or otherwise of an offence. In this context, reference may be made to Article 311 of the Indian Constitution, which says that no person shall be dismissed or removed from service until he has been given a reasonable opportunity to show cause why the proposed action should not be taken against him. The Model Standing Orders, too, lay down that, before an employee is dismissed, he should be given an opportunity to explain the circumstances against him.
15.2
STEPS IN DISCIPLINARY PROCEEDINGS
(a) Charge Sheet is Framed and Issued: The first step in the procedure is to frame a written charge sheet which is based upon a written complaint against the employee in question, and which contains details of the offence with which he is charged and the allegations of misconduct made against him, and indicating the time limit within which a reply to the charge sheet should be submitted to the authorities. The employee is called upon to show cause why a disciplinary action should not be taken against him. The contents and implications of the charge sheet may be explained to him in his own language and in the presence of some reputable witness, before a copy of it is handed over to him. If he refuses to accept it, it should be sent to his residential address under registered post with acknowledgement due. If the employee refuses to take delivery of the registered letter, or when it has been returned undelivered, it should be published in a local paper to ensure its wide publicity. (b) Receipt of Explanation: The employee may submit his explanation within the prescribed period of time, or he may ask for an extension of time for its submission. In the later case, the request should be considered in good faith in accordance with the rules of natural justice. (c) Issue of Notice of Enquiry: If the explanation received from the employee is found to be unsatisfactory, a notice of enquiry, mentioning the time, date and place, has to be given to him in which the name of the person or officer who would conduct the enquiry would also be mentioned. The employee is required to be present at the appointed time and place, together with his witnesses, if he has any.
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(d) The Holding of Enquiry: On the appointed day and at the appointed place and time, the enquiry is held by the enquiry officer in the presence of the employee. The contents of the charge sheet and an explanation of the procedure to be followed at the enquiry are communicated to the worker. If he pleads his innocence, the enquiry proceeds; but if he pleads guilty, unconditionally and in writing, the enquiry is dropped. The details of the enquiry are recorded and the report is signed by the enquiry officer and the employee. After all the witnesses have been examined against the employee, the defense witneses, including the employee, are called upon to submit their statements. All the supporting evidence and documents may be called by the enquiry officer and thoroughly examined. (e) The Findings: Once the enquiry is over, the enquiry officer has to give his findings, which should invariably contain the procedure which was followed, the parties statements, the documents produced and examined, the charges made and the explanations given and the evidence produced. The officer should then record his own findings on each of the charges and the grounds on which he has come to a particular conclusion. He should specifically mention which charges have been proved and which have not been proved. He then submits his findings to the authorities empowered to take a disciplinary action against the employee. He, however, is not required to make any recommendations. (f) Decision: On receiving the report, the executive authorised to take a decision thereon passes an order of punishment. (g) Communication of the Order: A copy of the order is then handed over to the employee.
15.3
DISCHARGE OF AN EMPLOYEE
The following conditions must necessarily be satisfied before an employee is discharged from service by way of punishment for misconduct (a) The misconduct of the employee is of such a nature as to indicate that his discharge or dismissal would be an appropriate punishment and that this kind of punishment has been provided in the Standing Orders. An enquiry must be held by the employer into the misconduct with which an employee has been charged. This enquiry should be held only after a charge sheet has been preferred against him, and he has been given due notice of the time, place and date of the enquiry. The enquiry should be held in such a manner as to ensure that it would be fair and proper and in conformity with the principles o natural justice. The worker must be given an adequate opportunity to defend himself and to present witnesses in support of his contention or case.
(b)
(c)
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(d)
The officer holding the enquiry should not be one who may be disqualified on the ground of bias, personal interest, or on the ground of his having been an eye witness to the misconduct with which the employee is charged. At the conclusion of the enquiry, the findings, based on recorded evidence, should be recorded by the enquiry officer. The findings must necessarily be based on recorded evidence and should not be perverse. The order of dismissal or discharge against the employee must be passed in good faith. The order must be duly communicated to the employee against whom it has been passed.
(e) (f) (g) (h)
15.4
CODE OF DISCIPLINE IN INDIAN INDUSTRY
This code was formulated after a great deal of discussion and on the recommendations of the Indian Labour Conference held in New Delhi in July 1957. The Conference discussed the question of discipline in Indian industries, and laid down certain principles governing it. These were There should be no lockout or strike without due notice No unilateral action should be taken in connection with any industrial matter There should be no recourse to goslow tactics No deliberate damage should be caused to plant or property The existing machinery for the settlement of disputes should be utilised Acts of violence, coercion, intimidation or incitement should not be indulged in Awards and agreements should be speedily implemented Any agreement, which is likely to destroy cordial industrial relations, should be avoided
Basic Features of the Code The principles referred to above were ratified in March 1958 and made applicable to industry and labour from 1st June 1958. The basic features of the Code of Discipline are: (a) It is a Stateinduced voluntary agreement between labour Unions and management to abide by certain selfimposed rules of behaviour in order to ensure that disputes do not arise; and that, if they do, to promote an orderly settlement through negotiation, conciliation and voluntary arbitration.
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(b) (c)
The Code enjoins upon the parties to accord due recognition to each others just rights and responsibilities. It enjoins upon the parties to refrain from taking any unilateral action in connection with any industrial matters; to utilise the existing machinery for the settlement of disputes with the utmost expedition: and to abjure strikes and lock outs without notice and without first exploring all possible avenues of a settlement. It discourages litigation and lays emphasis on a mutual settlement of disputes through negotiation, conciliation and voluntary arbitration rather than through adjudication. It enjoins that neither party should resort to demonstration, intimidation, victimisation, violence, coercion, discrimination or interfere in union activities or with the normal work of employees or indulge in insubordination or willful damage to property. The Code requires the employers to recognise the majority union in their establishments or industries, and set up a welldefined and mutually agreed grievance redressal procedure. It requires Workers not to adopt go slow tactics, or indulge in stayin or sit down strikes while they are on duty. It emphasises that awards, decisions, agreements and settlements should be promptly and rapidly implemented: and that an act which disturbs or impairs the cordial relations between employees and management, or which is contrary to the spirit of the code, is meticulously avoided. It directs employees and their trade unions to take appropriate action against their officers and members who indulge in activities which are contrary to the spirit and letter of the Code. It emphasizes the fact that a trade union must be recognised in accordance with the criteria laid down for the purpose.
(d)
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(i)
Objectives of the Code The following objectives of the Code of Discipline have been laid down To promote constructive criticism at all levels of management and employment To avoid a stoppage of work and litigation To secure the settlement of disputes and grievances by a mutually agreed procedure To facilitate a free growth of trade unions To maintain discipline in the industry To bring home to the employees and management the importance of their recognition of one anothers rights and responsibility To eliminate all forms of coercion, intimidation, and violations of rules, regulations and procedures governing industrial relations
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15.5
DISCIPLINARY ACTIONS: PENALTIES AND PUNISHMENTS
Discipline particularly positive discipline follows a typical sequence from mild to harsh: These vary from oral warning, written notice, suspension, demotion, pay cut and dismissal in that order. These six steps are the topics for discussion in this section. Oral Warning The mildest form of discipline is the oral warning. This is usually awarded on minor offences like late coming, absenteeism, etc. which are committed for the first time. A common practice followed in this regard is to make a temporary record of this warning and place the same in the employees file. Once the employee has shown better performance and willingness to adhere to rules and regulations, the record of the oral reprimand is removed from his file. Written Notice The second step in order of severity in progressive discipline is the written notice or warning. This is awarded for repeated minor offences or some major lapses. The procedure involved in writing of the warning is the same as the oral warning. The only difference is that the discussion concludes with the employee being told that a written warning will be issued. Then, the manager writes up the warning. A copy of the warning is sent to the personnel department. Like oral warning, organisations may allow employees to purge their personnel file of these warnings after some period of time, i.e. usually two years of proper work behaviour. Suspension Suspension also called lay off, is the next logical step taken in progressive discipline. Suspension as punishment is awarded for some major/serious offences. Suspension may be for a certain period ranging from one day to several weeks or months. During the suspension period, the employee is paid a reduced pay known as subsistence allowance. Full pay can be given if the suspension is withdrawn. However, suspension can have some implications for both the organisation and the employee. For organisation, suspension means loss of the employee for the lay off period, It is particularly so if the suspended employee is a skilled one. From the employees standpoint, suspension can result in a more negative frame of mind than before the layoff. Nonetheless, one reason why management considers suspending employee is to given an awakening to the problem employee.
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Demotion For the serious offences where suspension has not been effective and management wants to avoid dismissal, demotion is considered as an alternative punishment. It is noteworthy that, in contrast to the previous disciplinary actions, demotion is not temporary, but a constant one. It has serious implications for employee morale and motivation. Pay Cut Another alternative, also rarely applied in practice, is cutting the problem employees pay. This awarded mostly when offence led to damage or loss of property. A part of the loss is recovered from such pay cut of the employee. Dismissal/Discharge Dismissal is the ultimate disciplinary action taken against problem employee. This punishment is awarded only for the most serious offences involving integrity. Both dismissal and discharge lead to employee separation from the organisation. However, the severity of punishment is more in dismissal than discharge. In case of dismissal, the employee is deprived of service benefits such as gratuity, provident fund, pension and other perquisites and even disqualified for securing job in other organisations. As regards discharge, it is termination of employees job with notice and with service benefits earned so far. Both dismissal and discharge involve implications for employee such as emotional trauma, difficulty in securing job elsewhere, etc., This may compel the dismissed employee to take legal action against the decision. Hence, a dismissal or discharge as disciplinary action needs to be given a long and hard consideration. It is against this backdrop, some statutory provisions have been made to handle with discipline. In the next section, we will briefly describe these statutory provisions concerning discipline.
15.6
STATUTORY PROVISIONS CONCERNING DISCIPLINE
Recognizing the implications of disciplinary actions in the form of penalties and punishments, the Indian Law contains certain provisions concerning discipline. These are discussed as follows: Industrial Employment (Standing Orders) Act, 1946 As per the provisions of this Act, it is mandatory for certain industrial undertaking to define precisely the employment conditions including the rules and the regulations of discipline. Also to clearly describe the punishment and penalties awarded to employees creating indiscipline and the same made known to the employees in the organisation. In addition, the standing orders also describe what acts of employees are treated as misconduct and what are the punishments awarded for different misconducts. Following are some examples of employee misconduct:
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Willful insubordination or disobedience Refusal to work on job assigned to him Theft or fraud in connection with the property of the organisation Sabotage of safety devices Any illegal gratification Habitual late coming Absence from work without permission Gross negligence of duty
The Industrial Disputes Act, 1947 Under the provisions of the Act, a Labour Court or Labour Tribunal is to be set up to deal with industrial disputes. In case of protected workmen, prior permission for discharge or dismissal is sought. Besides, the Act also makes it obligatory for an employer employing more than fifty workers during the preceding one year, to set up a Grievance Settlement Authority. The responsibility of this authority is to settle industrial disputes of an individual worker. The Payment of Wages Act, 1936 Section 8 of this Act places restrictions on the imposition of fines on an accused employee. The rules or restrictions concerning to fines are to: Impose fines for approved list of misconducts and commissions Exhibit the list at or near the main entrance of the factory Give employee an opportunity of showing cause before imposing fine Limit the fine three percent of the rupee wages payable to the accused employee during the period Exempt workers below the age of 15 years from fine Record fine realized so in a register
Check Your Progress 1. Write any three disciplinary actions.
1 2 3
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Let Us Sum Up Employees are punished for various offences they commit. The disciplinary proceedings involve definite steps. Oral warning, written notice, suspension, demotion, pay cut and dismissal/discharges are the common forms of punishments to the employees. Recognising the implications for disciplinary actions in the form of penalties and punishments, the Indian Law contain certain provisions concerning disciplines. Model Questions 1. 2. 3. Establish the need for punishments in the organizations. Explain the common penalties and punishments in the organizations. What are the statutory provisions for concerning discipline? Explain.
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UNIT - IV
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LESSON-16 WAGES AND SALARY ADMINISTRATION

Contents 16.0 16.1 16.2 16.3 16.4 16.5 16.6 16.7 Aims and Objectives Nature and Purpose The Wage Determination Process Wage Administration Rules Factors Influencing Wage and Salary Structure and Administration Administration of Wages and Salaries Principles of Wage & Salary Administration Wages
16.0
AIMS AND OBJECTIVES
Wage and Salary Administration refers to the establishment and implementation of sound policies and practices of employee compensation. It includes such areas as surveys of wage and salaries, analysis of relevant organisational problems, development and maintenance of wage structure, establishing rules for administering wages, wage payments, incentives, profit sharing, wage changes and adjustments, supplementary payments, control of compensation costs and other related items. In this we discuss the abovementioned significant issues related to wage and salary administration.
16.1
NATURE AND PURPOSE
The basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary structure. Its secondary objective is the establishment and maintenance of an equitable labourcost structure, i.e., an optimal balancing of conflicting personnel interests so that the satisfaction of employees and employers is maximised and conflicts minimised. A sound wage and salary administration tries to achieve these objectives: (a) For employees 1. Employees are paid according to requirements of their jobs, i.e., highly skilled jobs are paid more compensation than low skilled jobs. This eliminates inequalities.
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2. 3. 4.
The chances of favouritism (which creep in when wage rates are assigned) are greatly minimised. Job sequences and lines of promotion are established wherever they are applicable. Employees morale and motivation are increased because a wage programme can be explained and is based upon facts.
(b) To employers 1. 2. They can systematically plan for and control their labour costs. In dealing with a trade union, they can explain the basis of their wage programme because it is based upon a systematic analysis of job and wage facts. A wage and salary administration reduces the likelihood of friction and grievances over wage inequities. It enhances an employees morale and motivation because adequate and fairly administered wages are basic to his wants and needs. It attracts qualified employees by ensuring an adequate payment for all the jobs. According to Beach, wage and salary programmes have four major purposes: To recruit persons for a firm To control payroll costs To satisfy people, to reduce the incidence of quitting, grievances, and frictions over pay To motivate people to perform better
3. 4. 5.
6. 7. 8. 9.
16.2
THE WAGE DETERMINATION PROCESS
Usually the steps involved in determining wage rates are: performing job analysis, wage surveys, analysis of relevant organisational problems, forming wage structure, framing rules of wage administration, explaining these to employees, assigning grades and price to each job and paying the guaranteed wage. The process of job analysis results in job descriptions which lead to job specifications. A job analysis describes the duties, responsibilities, working conditions and inter-relationships between the job as it is and the other jobs with which it is associated. It attempts to record and analyse details concerning the training, skills, required efforts, qualifications abilities, experience, and responsibilities expected of an employee. After determining the job
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specifications, the actual process of grading, rating or evaluating the job occurs. A job is rated in order to determine its value relative to all the other jobs in the organisation which are subject to evaluation. The next step is that of providing the job with a price. This involves converting the relative job values into specific monetary values or translating the job classes into rate ranges. Wage Surveys: Once the relative worth of jobs has been determined by job evaluation, the actual amounts to be paid must be determined. This is done by making wage or salary surveys in the area concerned. Such surveys seek to answer questions like what are other firms paying? What are they doing by way of social insurance? What is the level of pay offered by other firms for similar occupations? etc., by gathering information about benchmark jobs which are usually known as good indicators. Relevant Organisatlonal Problems: In addition to the results of job analysis and wage surveys, several other variables have to be given due consideration in establishing wage structure. For example, whether there exists well-established and well-accepted relationships among certain Jobs which can upset job evaluation, whether the organisation would recruit new employees after revised wage structure; are the prevailing rates in industry or community inconsistent with the results of job evaluation? What will be the result of paying lower or higher compensation; and what should be the relationship between the wage structure and the fringe benefit structure? Beicher has listed 108 variables which can affect levels of compensation and the wage structure. Preparation of Wage Structure. The next step is to determine the Wage structure. For this, several decisions need be taken, such as: (a)whether the organisation wishes, or is able, to pay amounts above, below, or equal to the averages in the community or industry; (b) whether wage ranges should provide for merit increases or whether there should be single rates; (c) the number and width of the pay grades and the extent of overlap; (d) which jobs are to be placed in each of the pay grades; (e) the actual money value to be as signed to various pay grades; (f) differencials between pay plans: and (g) what to do with salaries that are out of line once these decisions have been made. There are though no hard and fast rules for making such decisions.
16.3
WAGE ADMINISTRATION RULES
The development of rules of wage administration has to be done, after the rate ranges have been determined. Rules have to be developed to determine to what degree advancement will be based on length of service rather than merit; with what frequency pay increases will be awarded; how controls over wage and salary costs can be maintained; what rules will govern promotion from one pay grade to another, etc. At the next stage, the employees are to be informed of the details of Wage and Salary Programme. Although most hourly-paid workers are informed through the wage contract about the details of wage programme, substantially smaller number of salaried employees has such information about
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their jobs. It is considered advisable, in the interest of the concern and the employees that the information about average salaries and ranges in the salaries of group should be made known to the employees concerned: for secrecy in this matter may create dissatisfaction; and it may also vitiate the potential motivating effects of disclosure. Finally, the employee is appraised and the wage fixed for the grade he is found fit.
16.4 FACTORS INFLUENCING WAGE AND SALARY STRUCTURE AND ADMINISTRATION

A sound wage policy is to adopt a job evaluation programme in order to establish fair differentials in wages based upon differences in job contents. Besides the basic factors provided by a job description and job evaluation, those that are usually taken into consideration for wage and salary administration are: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The organisations Ability to Pay Supply and Demand of Labour Prevailing Market Rate The Cost of Living The Living Wage Adequacy Productivity Trade Unions Bargaining Power Job Requirements Managerial Attitudes Psychological and Social Factors
16.5
ADMINISTRATION OF WAGES AND SALARIES
Wage and salary administration should be controlled by some proper agency. This responsibility may be entrusted to the personnel department or the general company organisation, or to some job executive. Since the problem of wages and salary is very delicate and complicated, it is usually entrusted to a Committee composed of high ranking executives representing major line organisations. The major functions of such Committee are: 1. 2. 3. 4. 5. Approval and/or recommendation to management on job evaluation methods and findings Review and recommendation of basic wage and salary structure Help in the formulation of wage policies Co-ordination and review of relative departmental rates to ensure conformity Review of budget estimates for wage and salary adjustments and increases
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This Committee should be supported by the advice of the technical staff. Such staff committees may be for job evaluation, job description, merit rating, wage and salary surveys in an industry, and for a review of present wage rates, procedure and policies. Alternatively, the over-all plan is first prepared by the Personnel Manager in consultation and discussions with senior members of other departments. It is then submitted for final approval of the top executive. Once he has given his approval, for the wage and salary structure and the rules for administration its implementation becomes a joint effort of all heads of the departments. The actual appraisal of the performance of subordinates is carried out by the various managers, who in turn submit their recommendations to higher authority and the latter, in turn, to the personnel department. The personnel department ordinarily reviews recommendations to ensure compliance with established rules of administration. In unusual cases of serious disagreement, the president makes the final decision.
16.6
PRINCIPLES OF WAGE & SALARY ADMINISTRATION
The generally accepted principles governing the fixation of wages and salary are: i. There should be a definite plan to ensure that differences in pay for jobs are based upon variations in job requirements, such as skill, effort, responsibility or job or working conditions, and mental and physical requirements. ii. The general level of wages and salaries should be reasonably in line with that prevailing in the labour market. The labour market criterion is most commonly used. iii. The plan should carefully distinguish between jobs and employees. A job carries a certain wage rate, and a person is assigned to fill it at that rate. Exceptions sometimes occur in very high-level jobs in which the job-holder may make the job large or small, depending upon his ability and contributions. iv. Equal pay for equal work, i.e., if two jobs have equal difficulty requirements, the pay should be the same, regardless of who fills them. v. An equitable practice should be adopted for the recognition of individual differences in ability and contribution. For some units, this may take the form of rate ranges, with in-grade increases; in others, it may be a wage incentive plan; in still others, it may take the form of closely integrated sequences of job promotion. vi. There should be a clearly established procedure for hearing and adjusting wage complaints. This may be integrated with the regular grievance procedure, if it exists.
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vii. The employees and the trade union, if there is one, should be informed about the procedure used to establish wage rates. Every employee should be informed of his own position, and of the wage and salary structure. Secrecy in wage matters should not be used as a cover-up for haphazard and unreasonable wage programme. viii. The wage should be sufficient to ensure for the worker and his family reasonable standard of living. Workers should receive a guaranteed minimum wage to protect them against conditions beyond their control. ix. The wage and salary structure should be flexible so that changing conditions can be easily met. x. Prompt and correct payments of the dues of the employees must be ensured and arrears of payment should not accumulate. xi. For revision of wages, a Wage Committee should always be preferred to the individual judgement, however unbiased, or a manager. xii. The wage and salary payments must fulfill a wide variety of human needs, including the need for self-actualization. It has been recognised that money is the only form of incentive which is wholly negotiable, appealing to the widest possible range of seekers. Monetary payments often act as motivators and satisfiers interdependently of other job factor. Check Your Progress 1. List out the factors that determining wage and salary determination.
16.7
WAGES
Wages in the widest sense mean any economic compensation paid by the employer under some contract to his workers for the services rendered by them. Wages, therefore, include family allowance, relief pay, financial support and other benefits. But, in the narrower sense, wages are the price paid for the services of labour in the process of production and include only the performance wages or wages proper. They are composed of two parts the basic wage and other allowances. The basic wage is the remuneration, by way of basic salary and allowances, which is paid or payable to an employee in terms of his contract of employment for the work done by him. Allowances, on the other hand, are paid in addition to the basic wage to maintain the value of basic wages over a period of time. Such allowances include holiday pay, overtime pay, bonus and social security benefits. These are usually not included in the definition of wages. A wage level is an average of the rates paid for the jobs of an organisation, an establishment, a labour market, an industry, a region or a nation. A wage structure is a hierarchy of jobs to which wage rates have been attached.
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Fair and Living Wage Some new terms have gained currency in India after independence. These are: Statutory Minimum Wage is the wage determined according to the procedure prescribed by the relevant provisions of the Minimum Wages Act, 1948. Once the rates of such wages are fixed, it is the obligation of the employer to pay them, regardless of his ability to pay. Such wages are required to be fixed in certain employments where sweated labour is prevalent, or where there is a great chance of exploitation of labour. Bare or Basic Minimum Wage is the wage which is to be fixed in accordance with the awards and judicial pronouncements of Industrial Tribunals, National Tribunals an Labour Courts. They are obligatory on the employers. Minimum wage, fair wage and living wage are the terms used by The Report of the Committee on Fair Wages, set up by the Government in 1948 to determine the principles on which fair wages should be based and to suggest how these principles should be applied. The minimum wage should represent the lower limit of a fair wage. The next higher level is the fair wage and the highest level of the fair wage is the living wage. Elements or ingredients of a Good Wage Plan The ingredients of a good wage plan are: a) It should be easily understandable i.e., all the employees should easily understand what they are to get for their work. They should be instructed in how the wage plan works. b) It should be capable of easy computation, i.e., it should be sufficiently simple to permit quick calculation. Mathematical tables may be supplied, by reference to which calculations can be quickly made. c) It should be capable of effectively motivating the employees i.e., it should provide an incentive for work. If both the quality and quantity of work are to be stressed at the same time, a plan should be selected that will not unduly influence the worker to work too fast or to become careless of quality. d) It should provide for remuneration to employees as soon as possible after the effort has been made. Daily or weekly payment of wages would be preferable to induce employees to work. e) It should be relatively stable rather than frequently varying so that employees are assured of a stable amount of money.
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Types of Wages Time Wage: Under this system, workers are paid according to the work done during a certain period of time, at the rate of so much per hour, per day, per week, per fortnight or per month or any other fixed period of time. The essential point is that the production of a worker is not taken into consideration in fixing the wages: he is paid at the settled rate as soon as the time contracted for is spent. Piece Wage: Under this system, workers are paid according to the amount of work done or the number of units completed. The rate of each unit being settled in advance, irrespective of the time taken to do the task. Balance or Debt Method: In this method, the worker is guaranteed an hourly or a day-rate with an alternative piece rate. If the earnings of a worker calculated at the piece rate exceed the amount which he would have earned if paid on time basis, he gets credit for the balance, i.e., the excess piece rate earnings over the time rate earnings. If his piece rate earnings are equal to his time rate earnings, the question of excess payment does not arise. Where piece rate earnings are less than time rate earnings, he is paid on the basis of the time rate; but the excess which he is paid is carried forward as a debt against him to be recovered from any future balance of piece work earnings over time work earnings. Check Your Progress 2. What is wage?
3. Explain the types of wages.
Let Us sum Up Establishment and implementation of sound policies and practices of employee compensation is known as wage and salary administration. Wage determination process begins with job analysis and ends with preparation of wage structure. Many factors influence wage and salary administration. Wages in the widest sense mean any economic compensation paid by the employer under some contract to his workers for the services rendered by them. There are many types of wages and each wage plan is based on many ingredients. Model Questions 1. 2. Describe the wage determination process. What are the principles of wage and salary administration? - Discuss.
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LESSON-17 INCENTIVE SYSTEM

Contents 17.0 17.1 17.2 17.3 17.4 17.5 17.6 Aims and Objectives Meaning and Features Determinants of Incentives Classification of Types of Rewards Wage Incentives Types of Wage Incentive Plans Non-Monetary Incentives
17.0
AIMS AND OBJECTIVES
An incentive system is a motivating programme in the organization. In this lesson the nature and issues related to incentive system will be discussed. After reading this lesson you will be able to explain The basic determinants of incentives Different kinds of incentives Various types of wage incentive plans The nature and role of non-monetary incentives
17.1
MEANING AND FEATURES
An incentive or reward can be anything that attracts a workers attention and stimulates him to work. An incentive system is a plan or programmes to motivate individual or group performance. An incentive programme is most frequently built on monetary rewards (incentive pay or a monetary bonus), but may also include a variety of non-monetary rewards or prizes. The use of incentives assumes that peoples actions are related to their skills and ability to achieve important longer-run goals. Even though many organisations, by choice, or tradition or contract, allocate rewards on nonperformance criteria, rewards should be regarded as a pay off for performance.
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An Incentive plan has the following important features: i. An incentive plan may consist of both monetary and non- monetary elements. Mixed elements can provide the diversity needed to match the needs of individual employees. ii. The timing, accuracy and frequency of incentives are the very basis of a successful incentive plans. iii. The plan requires that it should be properly communicated to the employees to encourage individual performance, provide feedback and encourage redirection.
17.2
DETERMINANTS OF INCENTIVES
The effective use of incentives depends on three variables-the individual, work situation, and incentive plan. The Individual and the Incentives: Different people value things differently. Enlightened managers realise that all people do not attach the same value to monetary incentives, bonuses, prizes or trips. Employees view these things differently because of age, marital status, economic need and future objectives. However, even though employee reactions to incentives vary greatly, incentives must have some redeeming merits. For example, there might be a number of monetary and non- monetary incentive programmes to motivate employees. Money, gift certificates, praises, or merit pay are of the continuous parade of promotions. The Work Situation: This is made up of four important elements: (a) Technology, machine or work system, if speed of equipment operation can be varied, it can establish range of the incentive. (b) Satisfying job assignments, a workers job may incorporate a number of activities that he finds satisfying. Incentives may take the form of earned time-off, greater flexibility in hours worked, extended vacation time and other privileges that an individual values. (c) Feed back, a worker needs to be able to see the connection between his work and rewards. These responses provide important reinforcement. (d) Equity, worker considers fairness or reasonableness as part of the exchange for his work. Incentives, in general, are important motivators. Their effectiveness depends upon three factors: drives, preference value, and satisfying value of the goal objects.
17.3
CLASSIFICATION OF TYPES OF REWARDS

be classified into: (i) direct compensation,
Rewards or incentives can and (ii) indirect compensation.
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Direct Compensation includes the basic salary or wage that the individual is entitled to for his job, overtime-work and holiday premium, bonuses based on performance, profit sharing and opportunities to purchase stock options, etc. Indirect compensation includes protection programmes (insurance plans, pensions), pay for time not worked, services and perquisites. But these are maintenance factors rather than reward components. Since they are made available to all employees, irrespective of performance, they will tend to retain people in the organisation but not stimulate them to greater effort and higher performance. Some times, the rewards are also termed as Intrinsic rewards and Extrinsic rewards. The former are those that an individual receives for himself. They are largely a result of the job that the worker does. The techniques of job enrichment, shorter work weeks, flexible work hours, project structures and job rotation can offer intrinsic rewards through providing interesting and challenging jobs and allowing the worker greater freedom. On the other hand, the latter rewards refer indirect compensation, and non-financial rewards. to direct compensation,
17.4
WAGE INCENTIVES
The term wage incentives has been used both in the restricted sense of participation and in the widest sense of financial motivation. We may define a wage incentive as a system of payment under which the amount payable to a person is linked with his output. Such a payment may also be called payment by results. The term incentive has gradually acquired a wide connotation and includes all the possible factors, besides economic gains, which can possibly motivate human beings towards better and greater performance.
17.5
TYPES OF WAGE INCENTIVE PLANS
Wage Incentive plans may be discussed as (i) plans for blue-collar workers; (ii) plans for white-collar workers; and (iii) plans for managerial personnel-because each of these categories of employees have separate and distinct needs and specific plans tailored for each category may prove beneficial. 1. Incentive Plans for Blue Collar Workers: For Individuals: (A) Short-Term Plans Some important wage incentive plans are as follows:
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Halsey Premium Plan: This is a time-saved bonus plan which is ordinarily used when accurate performance standards have not been established. Under this plan, it is optional for a workman to work on the premium plan or not. His days wage is assured to him whether he earns a premium or not, provided that he is not so incompetent as to be useless. A standard output within a standard time is fixed on the basis of previous experience. The bonus is based on the amount of time saved by the worker. He is entitled to a bonus calculated on the basis of 33 per cent of the time saved. He thus gets wages on the time rate basis. If he does not complete the standard output within the stipulated time, he is paid on the basis of a time wage. The plan is a combination of the day wage and the piece wage in a modified form. Halsey-Weir Premium Plan: This plan is similar to the Halsey Premium Plan except that 50 per cent of the time saved is given as premium to worker. Bonus = 1/2 x Time Saved x Hourly Rate Rowan Premium Plan: This plan differs from the Halsey Plan only in regard to the determination of the bonus. In all other respects, the two are the same. In the Rowan Plan, the time saved is expressed as a percentage of the time allowed, and the hourly rate of pay is increased by that percentage so that total earnings of the worker are the total number of hours multiplied by the increased hourly wages. The plan aims at ensuring the permanence of the premium rate, which is often cut by the employer when the workers efficiency increases beyond a certain limit. The premium is calculated on the basis of the proportion which the time saved bears to standard time. The 100 Per Cent Premium Plan: Under this plan, task standards are set by time study or work sampling, and rates are expressed in time rates rather than in money. A definite hourly rate is paid for each task-hour of work performed. The plan is identical with the straight piece-rate plan except for its higher guaranteed hourly rate and the use of task time as a unit of payment instead of a price per piece. The worker is paid the full value of the time saved. The Bedeaux Point Plan: This plan is used when carefully assessed performance standards have been established. It differs from the 100 percent plan in that the basic unit of the time is the minute termed as B. Every job is expressed in terms of Bs(after Bedeaux), which means that a job should be completed in so many minutes. if a particular work is rated at 60 Bs (or one B hour), the worker is allowed one hour for its completion and receives a bonus of 75 per cent for the number of Bs, i.e., time saved. Taylors Differential Piece-Rate Plan: This system was introduced by Taylor with two objects: First, to give sufficient incentive to workmen to induce them to produce up to their full capacity; and second, to remove the fear of wage cut. There is one rate for those who reach the standard; they are given a higher rate to enable them to get the bonus. The other is the lower rate for those who are
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below the standard, so that the hope of receiving a higher rate (that is, a bonus) may serve as an incentive to come up to the standard. Workers are expected to do certain units of work within a certain period of time. This standard is determined on the basis of time and motion studies. Such scientific determination ensures that the standard fixed is not unduly high and is within the easy reach of workers. On a proper determination of the standard depends the success of the scheme. This system is designed to encourage the specially efficient worker with a higher rate of payment and to penalise the inefficient with a lower rate of payment. In practice, this plan is seldom used now. Merrics Multiple Piece Rate System: This system, too, is based on the principle of a low piece rate for a slow worker and a higher piece rate for higher production; but the plan differs from Taylors Plan in that it offers three graded piece rates instead of two. (i) Upto, say 83% of standard output a piece-rate + 10% of time rate as bonus; (ii) Above 83% and upto 100% of standard output same piece rate +20% of time rate; and (iii) Above 100% of standard output same piece rate but no bonus. Such a scheme is usually introduced in an organisation where the performance level is already high and management is aiming at 100% efficiency. Management has some discretion in distributing the 20% of time rate over 17% of production above 83%. The Gnatt Task and Bonus Plan: This plan has been devised by H.L.Gnatt and is the only one that pays a bonus percentage multiplied by the value of standard time. Under this system, fixed time rates are guaranteed. Output standards and time standards are established for the performance of each job. Workers completing the job within the standard time or in less time receive wages for the standard time plus a bonus which ranges from 20 per cent to 50 per cent of the time allowed and not time saved. When a worker fails to turn out the required quantity of a product, he simply gets his time rate without any bonus. Under this plan, there are also three stages of payment: (i) Below the standard performance, only the minimum guaranteed wage is to be paid; (ii) at the standard performance, this wage + 20% of time-rate will be paid as a bonus; and (iii) when the standard is exceeded, a higher piece rate is paid but there is no bonus. Emerson Efficiency Plan: Under this system, a standard time is established for a standard task. The day wage is assured. There is no sudden rise in wages on achieving the standard of performance. The remuneration based on efficiency rises gradually. Efficiency is determined by the ratio between the standard time fixed for a performance and the time actually taken by a worker. Co-Partnership System: This system tries to eliminate friction between capital and labour. Under this system, not only does a worker share in the profits of the undertaking but he also takes part in its control and, therefore, shares responsibilities. There are different degrees of this partnership and control allowed to the operatives in different cases; but in a complete co-partnership system, the following factors are present:
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i. The payment of the existing standard wages of labour ii. The payment of a fixed rate of interest on capital iii. The division of the surplus profit between capital and labour in an agreed proportion iv. The payment for a part of the workers labour by the allotment of a share in the capital v. The sharing in the control of the business by the representatives of labour The system arouses and sustains the interest of the workers in their work. By giving them a voice in the management of the factory it raises their status as well. As they have become partners in the business, they try to make it a very profitable enterprise. Accelerating Premium Systems: These are the systems which provide for a guaranteed minimum wage for output below standard. For low and average increases in output above the standard, small, increment in earnings are allowed. Increasingly large earnings are conceded for above average output, the increment being different for each 1% increase in output. Very significant increases in earnings are given for really high output. In this system, the production is pushed up higher and higher by discouraging low output and rewarding at an increasingly effective rate higher output. Such schemes are generally adopted when much higher outputs than what are currently obtained are to be achieved. (B) Long-Term Wage Incentive Plans Under such plans, each member of the group receives a bonus based on the output of the group as a whole. Group incentive plans are usually applied to small work groups, for example, 5 or 6 people who must assemble a component together. The incentives usually take three forms. 1. A Standard Output: a) b) A standard output i.e., target production, may be laid down for a month or a larger period and bonuses are paid if this is achieved. A standard output per man-hour is laid down for a department or for the plant as a whole, and the bonus is paid in proportion to which the actual output per man-hour exceeds the standard, the other conditions of work remaining the same.
2. The Value added by manufacture at factory cost leading to cost reduction forms the basis for calculating the bonus. If the actual cost of production is lower than the standard cost to the extent the workers are able to influence such reductionby harder working, saving in materials, fuels, lubricants, etc. a bonus whose money value is a percentage to the cost reduction is paid.
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3. Bonus can also be calculated on the increased value of sales where this result is obtained by increased production. The Group Incentive Plans are usually: a) b) The Profit sharing schemes, and The Scanlan Plan.
Profit Sharing Profit sharing usually involves the determination of an organisations profits at the end of the fiscal year and the distribution of a percentage of the profits to workers qualified to share in the earnings. The percentage to be shared by the workers is often predetermined at the beginning of the work period and is communicated to the workers so that they have some knowledge of their potential gains. To enable the workers to participate in profit sharing, they are required to work a certain number of years and develop some seniority. The theory behind profit sharing is, that management feels its workers will fulfill their responsibilities more diligently if they realise that their efforts may result in higher profits, which will be returned to the workers through profit sharing. The Scanlon Plan This plan was developed in 1937 by Joseph Scanlon a Lecturer at the Massachusetts Institute of Technology and a trade union leader in a steel mill. The plan was designed to involve the workers in making suggestions for reducing the cost of operation and improving working methods and sharing in the gains of increased productivity. The plan has two basic features: one, financial incentives aimed at cutting cost and thereby increasing efficiency are installed. Two, a network of departmental and plant screening committees are set up to evaluate employee and management cost-cutting suggestions. The plan is essentially a suggestion system and assumes that efficiency requires company wise/plant- wise co-operation. Usually all employees in the plant participate in the plan. Workers, supervisors, and managers make cost-cutting suggestions that are screened and evaluated by the various screening committees. If a suggestion is implemented and successful, all employees usually share in 75% of the savings, and the rest 25% is set aside for the months in which labour costs exceed the standard. The Scanlon plan has been successful where adopted. It tends to encourage a sense of partnership and sharing among workers, less overtime and employee insistence on efficient management. 2. Incentive Plans for White Collar Workers/Salesmen The salesmen are usually given incentives in the form of sales commissions. One study reported that almost 75% of the organisation surveyed paid salesmen on some type of incentive basis. This is due to three factors: (i) the unsupervised nature of most sales work; (ii) tradition in the market; and (iii) the assumption that incentives are needed to motivate salesmen.
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There are several incentive plans, each appropriate for different markets, products, etc., but all plans are basically variations of three types of plans: straight salary, straight commission, and combination plans. (a) Straight Salary Method is not an incentive plan; the salesman is simply paid on weekly, monthly, or on yearly basis. The advantages of this method are that (i) the salesmen know in advance what their income will be; and (ii) the expenditure on salesmen is known beforehand. The disadvantages are: (i) This method tends to shift salesmans emphasis to just making the sale rather than prospecting and cultivating long-term customers; and (ii) pay is not related to results. This lack of relationship reduces salesmens performance. (b) Straight Commission Basis: Under this method the salesmen are paid on the basis of sales effected, i.e., they are paid for results and only for results. Therefore, high performance salesmen are generally attracted. But the disadvantages are: (i) Salesman focusses on making a sale and on high volume items. Cultivating dedicated customers and working to push hard-to-sell items are often neglected, (ii) Salesmen tend to be less company-oriented and more money-oriented, and the company has less control over them; (iii) Salesmens income generally fluctuates widely. (c) Combination Method of Salary and Commission Basis: Under this, salesman not only get a fixed salary but also a commission in proportion to the sales effected. The advantages of this method are: (i) since salesmen are assured of minimum earnings, they are relieved of financial worries. (ii) The company has more control over its salesmen, as there is sizable salary component in most combination plans. So that it can direct salesmans activities by detailing what services and salary component is being paid for. But the main disadvantage is that salary is not related to performance; only incentive value of money is being traded off for its security value. Such plans also tend to become very complicated, and misunderstanding often results in frustration. In spite of these disadvantages, these plans are widely used with several basic variations, like: Salary Plus Commission; Commission Plus Drawing Account where not only commission is paid but the salesman is also allowed to draw on future earnings to get him through low sales period; commission plus bonus, where salesmen are paid primarily on the basis of commission but they are also given a bonus for activities like slow moving items; and salary plus bonus, wherein salesmen are paid a basic salary; and also given a bonus for carrying out specified activities. 3. Incentives for Management Employees In many organisations, the managers are paid bonus. There are two types of bonus plans: one determined by formula (i.e., some criteria like increased sales) and two, determined by some discretion used in allocation of bonus (i.e., paid on more or less permanent basis). The bonus plans are generally reviewed annually to make them more effective.
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For top level management, bonuses are generally tied to overall corporate results. The size of bonus is much higher for top level executives, and lower for the lower level executives.
17.6
NON-MONETARY INCENTIVES
While monetary incentives often appear as important motivators, many factors unrelated to money can also serve as attention-getters and encouragers of action. The classification of such non-financial incentives tends to a smorgasbord of desirable things that are potentially at the disposal of the organisation. The creation of such rewards are only limited by managers ingenuity and, ability to assess payoffs that individuals within the organisation find desirable and which are within the managers jurisdiction. As the old proverb goes: One mans food is another mans poison certainly applies to rewards. What one employee views as something I have always wanted, another finds superfluous. Therefore, care must be taken in providing the right reward for each person. Following are some examples of non-monetary incentives: The need-motives for affiliation, power and recognition in particular can be appealed to by such incentives. For example: 1. A person with strong need for affiliation may respond readily to job assignments that provide with opportunities to relate to socially attractive and satisfying individuals or groups. The opportunity to communicate with and relate to others is a factor many workers emphasize and seek. Persons who are very status conscious, can be motivated with the availability of a paneled office, a carpeted floor and wall paintings, a large desk and aristocratic furniture or a private bathroom, impressive job title, their own visiting cards, their own secretary and telephone, or a well located parking place with their name clearly painted underneath the Reserved signall of which are status symbols. An employee with high-level desires for power may respond easily to opportunity whereby he can gain leadership and administrative responsibilities. He may be stimulated by participative or free rein leadership in the decision making process. The use of job enlargement provides added incentive to some employees because they feel capable of controlling wider sets of activities than they previously performed. Persons interested in enhancing their reputations and receiving recognition in the eyes of others may respond to verbal praise or to publicized awards.
2. 3.
4.
5.
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6. 7. 8.
Persons proud of their long service may be attracted by awards recognising their seniority. Workers in safety minded organisation are often attracted by competition on awards for best safety performance records. Individuals proud of their past accomplishments may feel recognised and rewarded if their superiors extend opportunities for participation on more complex and more important job assignments.
In short, management may look to many non-monetary incentives for effective motivation of those who are most need-conscious. In many cases, these nonmonetary incentives might stimulate even more attention than the monetary ones. Check Your Progress 1. Define wage incentive plan.
Let Us Sum Up An incentive or reward can be anything that attracts a workers attention and stimulates him to work. Individual values and work situations determine the nature of incentives and the rewards may be of direct and indirect. There are various incentive plans for white collar and blue collar workers. Profit sharing and scanlan plan are the group incentive plans. Model Questions 1. 2. 3. Explain the incentive plans for white collar workers. Describe the incentive plans for blue collar workers. Write a short essay on non-monitory incentives.
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LESSON-18 LABOUR WELFARE AND SOCIAL SECURITY

Contents 18.0 18.1 18.2 18.3 18.4 Aims and Objectives Types of Labour Welfare Services Welfare of Workers Social Security Retirement Benefits to Employees
18.0
AIMS AND OBJECTIVES
It is the responsibility of the organizations to make life of its employees worth living. Similarly organizations have to implement social security schemes. In this lesson The common labour welfare services Accident prevention in the industry Welfare services to the employees such as counseling services and welfare programmes Retirement schemes to the employees are being discussed.
Labour Welfare The Oxford Dictionary defines labour welfare as efforts to make life worth living for workmen. These efforts have their origin either in some statute formed by the State or in some local custom or in a collective agreement or in the employers own initiative.
18.1
TYPES OF LABOUR WELFARE SERVICES
We may classify all labour welfare services under two heads: intramural and extramural. Intramural services are those which are provided within the factory (such as safety, health and counselling services). Extramural services are those which are provided outside the factory (such as education, housing, transport, recreation, etc.). Three important welfare services are described here, viz., safety, health and counselling.
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Safety Service Prevention of accidents is an objective which requires no explanation. This is one area in which there is complete identity of employer employee intereststhe employee does not want to be injured and the employer does not want to incur the cost of injuring him. The costs of accidents are enormous in suffering to the injured, in reduction or loss of earnings, in disabilities and incapacities which afflict those involved and in compensation, insurance and legal costs, in lost time, filling in reports and attending to enquiries, and in spoilage of materials, equipment and tools to management. Components of a Safety Service Among the many components of a safety service the following have proved effective when applied in combination: 1. Appointment of Safety Officer. In big organisations, the appointment of a safety officer to head the safety department is a must. In small organisations, the personnel manager may look after the functions of this department. The head of the safety department, who is usually a staff man, is granted power to inspect the plant for unsafe condition, to promote sound safety practices (through posters and safety campaigns), to make safety rules, and to report violations to the plant manager. His functions also include analysing the causes of accidents, maintaining accident statistics and records, purchasing safety equipment and so on. In some organisations, the relationship between the head of the safety department and the line manager may be functional, that is, the head has the authority to issue and enforce orders in his functional field of safety. Support by Line Management. The head of the safety department, whether enjoying a staff or a functional position, by him, cannot make a plant safe. His appointment lulls line management into assuming that all its safety problems have been solved. This highlights the importance of making safety a line responsibility. It is said that safety is essentially a line problem. Like all other line management problems it also involves questions of motivation, enforcement of standards and working through groups. One sure way to win line peoples support is to encourage them to participate on safety committees, on housekeeping inspections and investigations of accidents.
2.
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3.
Elimination of Hazards. Although complete elimination of all hazards is virtually an impossibility but following steps can be taken to help reduce them: (i) Job Safety Analysis. All job procedures and practices should be analysed by an expert to discover hazards. He should then suggest changes in their motion patterns, sequence and the like. For example, he may discover that a particular reach over a machine could easily result in a loss of balance and injury or he may discover that a corner of a fixture is sharp enough to cut the hands of the worker. On the basis of job safety analysis the expert should also determine any special qualifications needed by an individual to perform the job. These qualifications may be later incorporated in the job specifications. Placement. A poorly placed employee is more apt to incur injury than a properly placed employee. Employees should be placed on jobs only after carefully estimating and considering the job requirements with those which the individual apparently possesses. Personal Protective Equipment. Endless variety of personal safety equipment is available nowadays which can be used to prevent injury. Safeguarding Machinery. Guards must be securely fixed to all power driven machinery. (v) Materials Handling. Though often ignored, the careless handling of heavy and inflammable materials is an important source of several injuries and fire. Hand Tools. Minor injuries often result from improperly using a good tool or using a poorly designed tool. Therefore, close supervision and instruction should be given to the employees on the proper tool to use and the proper use of the tool. (vii) Maintenance. Worn-out machinery, machinery guards and attachments, old and out-of-date fire-fighting equipment also contribute to a serious hazard. They often give employee a false sense of security and protection.
(ii)
(iii)
(iv)
(vi)
(viii) Layout and Design. A good plant layout and design can go a long way in preventing accidents. Construction of fireproof walls, adequate fire escapes, aisles, and storage space, doorways and passageways, location of hazardous items above employee reach, provision for nonskid floors, protection of radiators by grills can do much to reduce accidents.
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(ix)
Housekeeping. Good housekeeping does not include only tidy and clean floors and machines. Other items such as dirty windows, dusty lights and dirty reflectors which reduce the effectiveness of lighting can also result in employee injury. Falls. Another major source of industrial injury is tripping over objects, slipping on floors and falling on to another level. Many dangers lurk in stacking and storing. Piles may not be properly constructed and may subsequently collapse. Periodic inspection can help prevent many accidents stemming directly from these causes.
(x)
4.
Safety Training, Education and Publicity. Safety training is concerned with developing safety skills, whereas safety education is concerned with increasing the employees knowledge about accident prevention. Publicity in the form of contest programmes, safety campaigns, suggestion awards, and various audio-visual aids can be considered as different forms of employee education. Safety training programmes should be derived from an analysis of training needs. This should refer to the hazards generally present in the company as well as the specific hazards associated with individual jobs. Training to deal with the general hazards can be given at the time of induction. Specific hazards can be covered at the time of job training. Safety Inspections. An inspection by a trained individual or a committee to detect evidence of possible safety hazards (such as poor lighting, slippery floors, unguarded machines, faulty electrical installations, poor work methods and disregard of safety rules) is a very effective device to promote safety.
5.
New Techniques in Accident Prevention Three new techniques of accident prevention which have recently been developed in industrially advanced countries of the West are Damage control Human engineering or ergonomics Systems safety
(i) Damage Control. Heinrich in his book, Industrial Accidents Prevention, postulates that before a given set of circumstances can lead to a lost-time accident, there would be 29 accidents involving minor injuries and 300 nearaccidents involving no injury caused by the same set of circumstances. However, this theory does not go so far as to accurately predict when the lost-time injury would occur.
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Lukens Steels of the United States have conducted systematic research to evolve a method that would predict accurately when the lost-time injury would occur. Their study concludes that every accident is preceded by a series of minor injuries and incidents which can be said to occur in the following six steps: 1. At stage one, the situation has an accident potential only. There may be something unsafe in the working environment or wrong attitude to safety in a certain department. Unsafe acts may occur due to inefficient supervision. At stage two, the accident potential is realised and dangerous incidents do in fact occur. But as it is near-miss, there is no injury and no damage to plant or equipment. At stage three, the near-miss becomes a hit and plant and equipment are damaged. But people are not involved. Therefore, no injury is recorded. At stage four, people are involved. The accident causes minor injuries to people as well as possible damage to plant and equipment. At stage five, the injuries caused by an accident are serious enough to keep the worker away for more than three days. At stage six, the injuries received prove fatal.
2.
3. 4. 5. 6.
Lukens Steels experts have, therefore, established that adequate number of signs and indications would be available to those who can keep their eyes open and mind watchful and documentation of these indicators would help exercise a better control. One should note that it is not the same as conventional accident control. It concentrates attention on injury potential at the pre-injury stage. (ii) Human Engineering or Ergonomics. Ergonomics is the science that deals with many-sided problems of how to fit a job to mans anatomical, physiological and psychological characteristics to enhance human efficiency and well-being. Thus ergonomics is the application of knowledge of human capabilities and limitations to the design of plant and equipment. An equipment designed on the principles of human engineering is far less likely to be a source of accident than one designed without such considerations. (iii) Systems Safety. A system is an orderly arrangement of components which are interrelated and which act and interact to perform some task or function in a particular environment. All the components of a system are complementary to each other. Accidents occur when any one part of the system fails or malfunctions. Certainly if the entire industrial system were under complete control, no accident would result. The systems approach gives rise to use of advanced quantitative techniques and computers.
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Health Service The prevention of accidents constitutes only one segment of the function of employee maintenance. Another equally important segment is the employees general health, both physical and mental. The factors which influence the general health of the worker can be divided into two broad groups, namely: (i) those which are associated with his working environment, and (ii) those which he shares with the rest of the community. As regards the second, it seems reasonable to hold that the workers should have the facilities for health protection that the State provides for the general population. But as regards the factors in the working environment which tend to produce ill health, the worker has the right to demand special measures for his protection. There are two aspects of industrial health services: (i) preventive and () curative, The former consists of 1. 2. 3. 4. 5. Pre-ernployment and periodic medical examination Removal or reduction of health hazards to the maximum extent possible Surveillance over certain classes of workers such as women, young persons and persons exposed to special risks Training of first aid personnel and education of workers in health and hygiene Attention to working conditions such as proper lighting, temperature, ventilation, noise, etc.
The curative aspect begins only after a worker has fallen ill or caught any disease. Counselling Service An employee very often comes across problems which have emotional content. For example, he may be nearing retirement and feeling insecure or he may be getting promotion and feeling hesitant to shoulder increased responsibility or he may be worried due to some family problem. In all such cases the employee needs to be counselled by somebody. Counselling may be done by anybody in whom the employee has confidence and trust. It is not limited exclusively to professionally trained individuals. Counselling is a discussion of the problem with the employee to help him cope with it better. Counselling produces the following advantages: Health of Workers The following are the health provisions that have to be adopted in the organizations:
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1.
Cleanliness. Every factory shall be kept clean by daily sweeping or washing the floors and work rooms and by using disinfectant where necessary. Walls, doors and windows shall be repainted or revarnished at least once in every 5 years. Disposal of Wastes and Effluents. Effective arrangements shall be made for the disposal of wastes and for making them innocuous. Ventilation and Temperature. Effective arrangements shall be made for ventilation and temperature so as to provide comfort to the workers and prevent injury to their health. Dust and fume. Effective measures shall be taken to prevent the inhalation and accumulation of dust and fumes or other impurities at the work place. Artificial Humidification. The State Government shall make rules prescribing standards of humidification and methods to be adopted for this purpose. It will be incumbent on the management to use effectively purified water for humidification. Overcrowding. There shall be in every work room of a factory in existence on the date of commencement of this Act at least 9.9 cubic meters and of a factory built after the commencement of this Act at least 4.2 cubic meters of space for every worker. Lighting. The State Government may prescribe standards of sufficient and suitable lighting. However, there shall be provision for both natural and artificial lighting. Glares and shadows which cause eye strain shall be avoided and all artificial lighting arrangements shall be kept clean. Drinking Water. There shall be effective arrangement for wholesome drinking water for workers at convenient points. If their number is more than 250 then the arrangement shall be made for cool drinking water during hot weather. Latrines and Urinals. There shall be sufficient number of latrines and urinals. clean, well-ventilated, conveniently situated and built according to prescribed standards separately for male and female workers. Spittoons. There shall be sufficient number of spittoons placed at convenient places in the factory. Workers will use these spittoons for spitting. Any worker violating this rule shall be punished with fine not exceeding Rs. 5.
2. 3.
4. 5.
6.
7.
8.
9.
10.
18.2
WELFARE OF WORKERS
The following are the welfare measures that are to be adopted by the organizations.
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1. 2. 3. 4.
There shall be separate and adequately screened washing facilities for the use of male and female workers. There shall be suitable places provided for clothing not worn during working hours and for the drying of wet clothing. There shall be suitable arrangement for all workers to sit for taking rest if they are obliged to work in a standing position. There shall be provided the required number of first-aid boxes or cupboards (at the rate of one for every 150 workers) equipped with the prescribed contents readily available during the working hours of the factory. The State Government may make rules requiring that in any specified factory employing more than 250 workers, a canteen shall be provided and maintained by the occupier for the use of the workers. There shall be provided sufficiently lighted and ventilated lunch room if the number of workers ordinarily employed is more than 150. There shall be provided and maintained an adequately lighted and ventilated room (creche facilities) for the use of children under the age of 6 years of women workers if their number exceeds 30.
5.
6. 7.
Welfare Funds In order to provide welfare facilities to the workers employed in Mica, Iron Ore, Manganese Ore and Chrome Ore, Limestone and Dolomite Mines and in the Beedi Industry, the welfare funds have been established to supplement the efforts of the employers and the State Governments under respective enactments. The funds have been created by levy of the cess on production or consumption or export of the minerals and in the case of Beedi, on the manufactured beedis. The welfare measures financed out of the funds relate to development of medical facilities, housing, supply of drinking water, support for education of dependants and recreation, etc. Voluntary Benefits Besides the above statutory benefits, many benefits are also given voluntarily to workers by some progressive employers. These include loans for purchasing houses and for educating children, leave travel concession, fair price shops for essential commodities and loans to buy personal conveyance. Many organisations, both in the private and public sector, are developing townships for their workers. These townships have well laid-out housing colonies, properly maintained roads and other amenities like schools, hospitals, community centres, shopping centres, recreation clubs, cultural centres, parks etc. The entire cost of administration of these townships is borne by the industrial undertakings.
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Check Your Progress 1. What are welfare programmes?
.. 2. Explain the employee welfare services.
18.3
SOCIAL SECURITY
According to the Social Security (Minimum Standards) Convention (No 102) adopted by the ILO in 1952, following are the nine components of social security: a) b) c) d) e) f) g) h) i) Medical care Sickness benefit Unemployment benefit Old-age benefit Employment injury benefit Family benefit Maternity benefit Invalidity benefit Survivors benefit
Social security schemes may be of two types: (a) Social assistance, under which the State finances the entire cost of the facilities and benefits provided. Here benefits are paid after testing the financial position of the beneficiary. (b) Social insurance, under which the State organises the facilities financed by contributions from both the workers and employers, with or without a subsidy from the State. Here, benefits are paid on the basis of the contribution record of the beneficiary without testing his means. Social Security in India At present both types of social security schemes are in vogue in our country. Among the social assistance schemes old-age assistance schemes are the most important. The Government of Uttar Pradesh introduced old-age assistance scheme in 1957. This scheme was designed to pay a monthly benefit to needy
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individuals over the age of 70 years who had no one to support them. Similar schemes were started in Andhra Pradesh in 1961, Tamil Nadu in 1962, Punjab and Haryana in 1963 and subsequently in many other States. However, different States have different eligibility conditions and provide different levels of benefits: Under the Centrally-sponsored National Social Assistance Programme (NSAP) three types of benefits are given to the people who are below the poverty line. These are old age pension, maternity benefit and support on the death of the bread winner. Under the Old Age Pension scheme each persons of the age of 65 or above gets Rs. 75 p.m. Under the Maternity Benefit Scheme a woman gets Rs. 300 per pregnancy up to the first two live births. Under the third scheme a bereaved family is given Rs. 5000 in case of natural death of its bread winner and Rs. 10,000 in case of death by accident. The social insurance method, which has gained much wider acceptance than the social assistance method, consists of the following enactments. 1. 2. 3. 4. 5. 6. The Workmens Compensation Act, 1923 The Employees State Insurance Act, 1948 The Employees Provident Funds and Miscellaneous Provisions Act, 1952 The Maternity Benefit Act, 1961 The Payment of Gratuity Act, 1972 The Industrial Disputes Act, 1947
18.4
RETIREMENT BENEFITS TO EMPLOYEES
The Employees Provident Funds and Miscellaneous Provisions Act, 1952 (a) Coverage. This Act applies to every establishment which the Central Government notifies in the Official Gazette and in which 20 or more persons are employed. The Central Government may by notification in the Official Gazette extend the provisions of the Act to any establishment employing even less than 20 persons. The Act does not apply to co-operative societies employing less than 50 persons and working without the aid of power. It also does not apply to new establishments for 3 years from the date they are set up notwithstanding the number of persons employed by them. The appropriate Government is empowered to grant exemption from the operation of this Act to any class of establishments under certain conditions. (b) Administration. The Employees Provident Funds and Pension Schemes framed under the Act are administered by a tripartite Central Board of Trustees, consisting of representatives of employers and employees and persons nominated by the Central and State Governments.
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(c) Benefits. The Act has made schemes for 3 types of benefits, viz., provident fund, pension and deposit-linked insurance. Under the Provident Fund Scheme an employee can avail himself of non-refundable withdrawals or take advances from his provident fund account for construction of house, sickness, marriage of self /dependants, higher education of his children, financing of the life insurance policy, temporary unemployment and natural calamities. On superannuation he gets the full balance at his credit with interest. The new Employees Pension Scheme (which came into force from 16.11.1995) offers the following benefits to an employee: (i) Superannuation/Retirement/Short Service Pension: An employee is entitled to: a) b) c) Superannuation pension if he has rendered eligible service of 20 years or more and retires on attaining the age of 58 years; Retirement pension if he has rendered eligible service of 20 years or more and retires before attaining the age of 58 years; Short service pension if he has rendered eligible service of 10 years or more but less than 20 years.
(ii) Disablement Pension An employee who is permanently and totally disabled during the employment is also entitled to pension for life time (minimum being Rs. 250 p.m.) notwithstanding that he has not rendered the pensionable service entitling him to pension provided that he has made at least 1 months contribution to the Pension Fund. (iii) Widow Pension In the case of an employees death in service or death after superannuation a reduced amount of monthly pension is payable to his widow. This will be equal to the employees pension in the former case (the minimum being Rs. 450 p.m.) and 50% of the employees pension in the latter case (the minimum being Rs. 250 p.m.). The widow is entitled to receive pension up to the date of her death or remarriage whichever is earlier. If there are 2 or more widows the pension will be paid to the eldest (i.e., the one who has married first) and on her death to the next surviving widow, if any. (iv)Children Pension This is paid in addition to widow pension to each minor child (up to 2) at the rate of 25% of widow pension till the minor child is 25 years of age. In the case of female child it is payable to her till her marriage or attaining the age of 25 years whichever is earlier. Minimum amount of this pension is Rs. 115p.m. per child.
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(v) Orphan Pension This is payable to surviving minor orphan children (up to 2) till they attain the age of 25 years. The amount of this pension is 75% of monthly widow pension to each child with a minimum of Rs. 170 p.m. In the case of a female child the pension is payable till her marriage or attaining the age of 25 years whichever is earlier. Under the deposit-linked insurance scheme, the dependants of the employee on his death receive an additional amount which is equivalent to the average balance lying to the credit of the employee in his provident fund during the preceding one year, subject to a maximum of Rs. 35,000. Sources of Funds The employee is required to contribute to the Provident Fund every month 8.33% of the basic wages, dearness allowance, retaining allowance and cash value of food concessions admissible to him. The employer contributes 1.6%. The Employees Pension Fund is made up of contributions by the employers and the Central Government. The employer is required to contribute to this Fund 8.33% of the above aggregate every month. The Central Government is also required to contribute 1.16% of this aggregate. Where the pay of an employee exceeds Rs. 6,500 per month the contribution payable by the employer and the Central Government is limited to the amount payable on his pay of Rs. 6,500 only. The deposit linked Insurance Fund is also made up of contributions by the employer and the central government. These are 0.5% and 0.25% respectively of the aggregate every month. The Payment of Gratuity Act, 1972 (a) Coverage The Act applies to every factory, mine, oilfield, plantation, port and Railway Company and to every shop or establishment in which 10 or more persons are employed, or were employed, on any day of the preceding 12 months. The Act makes all persons employed in the above establishments eligible for gratuity irrespective of their wages. (b) Administration The Act is administered by a controlling authority appointed by the appropriate Government. (c) Benefits Under the Act gratuity is payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years. The completion of continuous service of five years is, however, not necessary where the termination of the employment is due to death or disablement.
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Gratuity is payable at the rate of 15 days wages based on the rate of wages last drawn by the employee for every completed year of service or part thereof in excess of six months. But the amount of gratuity payable to an employee shall not exceed Rs. 3.5 lakh. (d) Source of Funds Under the Act gratuity is payable entirely by the employer. For this purpose he is required either (i) to obtain insurance with the Life Insurance Corporation, or (ii) to establish a gratuity fund. Thus it is his liability to pay the premium in the first case and to make the contribution in the second case. Check Your Progress 3. What is Gratuity? .. 4. Describe the retirement benefits to the employees.
Let Us Sum Up Labour welfare programmes are of two types, viz. intramural and extramural. In the welfare programme, physical and mental health of the employees are concerned and measures are taken to enhance the same. The social security schemes such as unemployment benefits, retirement benefits, old age benefits and others ensure secure living of the employees and their family members. Model Questions 1. 2. Write an essay on the labour welfare programmes. Describe the social security programmes in India.
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LESSON-19 EMPLOYEE SAFETY

Contents 19.0 19.1 19.2 19.3 19.4 19.5 19.6 19.7 Aims and Objectives Industrial Accident and Industrial Injury Causes of Accidents Accident Proneness Accident Reports and Records Safety Organisation Basis of Safety Programme and Policy Accident Prevention
19.0
AIMS AND OBJECTIVES
Accidents, the unexpected events, cause damage to man and machine in the industry. Therefore, it is very essential to prevent accidents and ensure maximum safety to the employees. In this lesson The nature, causes and prevention of accidents in the industry Accident proneness-the personality characteristic of the employees Safety measures to be taken in the industry
are being discussed. Employee Safety Since the beginning of the present century, employee safety and health problems at work have been engaging attention of the psychologists, sociologists and industrial engineers. Psychologists are concerned with the theoretical considerations of accident causation and the research into accident control, through proper selection, training and education of the employee: and the social and psychological factors that influence the individuals behaviour in general. Engineers and safety officers usually render necessary practical advice on certain aspects of safety in industry. They look upon prevention of accidents basically as an engineering problem to be tackled through proper designing of mechanical safety devices. In fact, accident prevention and safety are inter related and, therefore, require a multi-dimensional approach. Its importance has increased because of large-scale industrialisation in which human beings are subject to mechanical, chemical, electrical and radiation hazards. Besides,
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modern industry is characterised by complicated mechanisms, intricate job requirements, and fast moving production lines. One of the important consequences of all this is increased dangers to human life, through accidents.
19.1
INDUSTRIAL ACCIDENT AND INDUSTRIAL INJURY
The life of industrial workers is full of risks and hazards. Every year lakhs of employees are injured in factories, mines, railways, ports and docks, leading to acute ailments or permanent handicaps. The injuries may be caused as a result of any unsafe activity, or act on their part or chance occurrences (like walking past a plate-glass Window just as someone hits a ball through it) or as a result of some Unsafe work conditions or unsafe acts of employees themselves, or defective plant or shop lay out, inadequate ventilation, unsafe and Insufficient lighting arrangements, or insufficient space for movement inside the plant or shop, etc. An industrial accident may be defined as an occurrence which interrupts or interferes with the orderly progress of work in an industrial establishment. According to the Factories Act of 1948, it is an occurrence in an industrial establishment causing bodily injury to a person which makes him unfit to resume his duties in the next 48 hours. In other words, it is an unexpected event which is neither anticipated nor designed to occur. It is always sudden for a gradual process does not constitute an accident. Moreover, the even or occurrence should be something to which a definite time, data and place can be assigned. It must arise in the course of employment in a factory or an industrial establishment. However, self inflicted injuries or injuries inflicted with the consent of a person cannot be regarded as accidents. An industrial injury has been defined as a personal injury to an employee which has been caused by an accident or an occupational disease, and which arises out of, or in the course of, employment, and which would entitle such employee to compensation under the Workmens Compensation Act, 1923. Nature of Accidents The nature of an accident may vary from industry to industry. An employee may fall from a height while engaged on a particular assignment; or he may be caught in a machine while working on it; or he may fall against a machine; or parts of a machine having a horizontal protruding motion may strike against him; or explosives used carelessly may explode, and injure an employee. Such accidents may result in disablement or death. Disablement whether partial or total - may take the form of a loss of ability to work or to move. Such incapacity may be partial or total. Both types of disablement may be temporary or permanent. A temporary partial disablement reduces the earning capacity of an individual in the employment in which he was engaged when he sustained an injury at the time of the accident; while a permanent partial disablement is that which reduces his ability to earn an
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income from any employment which he was capable of undertaking at the time the accident occurred. He is entitled to compensation only to the extent to which his ability to earn is reduced or impaired. Total disablement, on the other hand, is a disablement, whether temporary or permanent, which incapacitates a workman and makes it impossible for him to engage in any work which he was capable of performing at the time of the accident which resulted in that disablement. In these circumstances, he is entitled to full compensation.
19.2
CAUSES OF ACCIDENTS
Accidents are usually the result of a combination of factors, each one of which may vary from situation to situation. This combination may be of unsafe acts and equipment, of people, factors and conditions. According to safety experts there are three basic causes/factors that contribute to accidents in organisations. Chance occurrences, unsafe conditions and unsafe acts on the part of employees. 1. Unsafe Conditions (work-related causes): These, of one sort or another, are the biggest cause of accidents. Such causes are associated with defective plants, equipment, tool, materials, buildings, etc. These can be termed technical causes. They arise when there are improper or inadequate safety guards on machines; when machines break down; when improper personal protection equipment is installed; when mechanical or construction designs are defective and unsafe; and when control devices, which have been installed to make the operation of machines safe and accident free are lacking or defective; or when there is an absence of proper maintenance and supervision of these devices. Thus, unsafe conditions include Improperly guarded equipment Defective equipment Hazardous arrangement or procedure in, and or around, machines or equipment Unsafe storage; congestion; overloading Inadequate safety devices Wrong and faulty lay out, and bad location Improper illumination glare, insufficient light Improper ventilation insufficient air clarge, impure air source Poor house-keeping
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Safety experts are of the view that while accidents can happen anywhere, there are some high danger zones. For example, about onethird of industrial accidents occur around handlift trucks, wheel-brrows, and other handling and lifting areas. The most serious accidents usually occur near metal and working machines and saws, or around transmission machinery like gears, pulleys, and flywheels on stairs, ladders, waIkways, scaffolds, hand rails. Handtools (like chisels or screw drivers) and electrical equipment (extension cords, electric drop lights, etc.) are other big accident causes. The other work related causes of accidents are (a) The job itself. Some jobs are inherently more dangerous than others, such as the job of crane man in comparison to that of the foreman. Similarly, work in some departments (like personnel) is inherently safer than the work in others (like production department). b) Work schedules. Accidents increase late in the day. They do not usually occur during the early hours of the work day. They are more frequent during the night shift. This is due partly to fatigue and partly to the fact that night is the period when one requires rest. c) Psychological climate of the work place, also affects the accident rate. Psychological, mental and emotional imbalances are at the root of several accidents. Emotionally disturbed and mentally preoccupied persons meet with more accidents than a normal person. The psychological factors associated with accidents are fatigue, anxiety, tiredness, overwork, monotony, boredom, lack of self-confidence, and frustration. Fatigue often has a psychological origin, and may be due to anxiety, to the monotony of the job on which a person is employed; frustration and inadequate incentives; to unfair and incorrect methods of selection and promotion; to the absence of group harmony and social integration; to bad leadership and ineffective organisation; and to low social prestige. The frustrating situations include sudden or arbitrary withdrawal of desirable objects and of certain privileges which were enjoyed by an employee; the creation of distrust in an individual and his ability to work; the creation, too, of distrust on the part of employees of a particular individual in the group: restrictions on opportunities for self-expression; discrepancy between an aspiration and the ability to solve a problem. All these situations affect for the worse the alertness of an employee, distract him, make him lose his concentration on the job in hand, and lead to accidents. 2. Unsafe Acts: These acts may be the result of lack of knowledge or skill on the part of the employee, certain bodily defects and wrong attitudes. These acts include acts like: Operating without authority Failing to secure equipment or warning other employees of possible danger Failing to use safe attire or personal protective equipment Throwing materials on the floor carelessly
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Operating or working at unsafe speeds, either too fast or too low Making safety devices inoperative by removing, adjusting, disconnecting them Using unsafe equipment, or using equipment unsafely Using unsafe procedures in loading, placing, mixing, and combining Taking unsafe positions under suspended loads Lifting improperly Cleaning, adjusting, oiling, repairing, etc. moving dangerous equipment Distracting, horseplay teasing, abusing, startling, quarreling, day-dreaming,
Personal Characteristics also influence accident behaviours of individuals. For example, characteristics like personality, motivation serve as a basis for certain behaviour tendencies such as tendencies to take risks and undesirable attitudes. These behaviour tendencies, in turn, result in unsafe acts such as failure to follow procedures and safety rules, and reluctance to use safety equipments or haste on the part of the employee particularly, when he is on incentive payment schemes. These unsafe acts increase the probability of an individual incurring an accident. 3. Other Causes: These causes arise out of unsafe situational and climate conditions and variations such as bad working conditions, rough and slippery floors, excessive glare, heat, humidity, dust and fume - laden atmosphere; very long hours of work; unsatisfactory behaviour of domineering supervisors; excessive noise and carelessness in the handling of such inflammable materials such as gasoline, solvents, oil and grease, explosives, etc. Certain broad conclusions can be drawn on the basis of experience and studies undertaken by psychologists, such as i. Young, untrained and new workers generally sustain injuries more frequently than older, trained and experienced employees. ii. Those addicted to alcoholism and drugs, and those who suffer from boredom and fatigue or indulge in exhibitionism, generally account for a higher rate of accidents. iii. The way the management motivates employees affects the rate and frequency of accidents. The tensions which aggressive and negative supervisors generate among the employees also tend to increase this rate and frequency. iv. Unmarried employees employees. generally have more accidents than married
v. Accidents are more frequent during the night shift. vi. Women employees have a better safety record than their male counterparts. vii. Workers who work under stress, or who feel their jobs are threatened or insecure, seem to have more accidents than those who do not.
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19.3
ACCIDENT PRONENESS
It is a condition in which a human being is mentally inclined strongly disposed, attitudinally addicted or personally destined to become continually involved in an on-going and neverending series of accidents or injuries. Accordingly some people may be more often involved in accidents than others. In other words, they are accidents prone. They get involved in accidents, however hard they try to avoid them. The causes of accidentproneness are muscular weakness, emotional instability, visual disability, recklessness, hostility and indifference. The concept of accidentproneness, however, is now being replaced by that of accident repeater, that is, an accident repeater generally has more than a normal share of accidents during a particular period of time. Repeated accidents are not due to any mystical mysterious or supernatural cause, but are due to the personality, emotional make-up, family background and physical condition of an individual in the context of specific circumstances. Age, experience and supervision are also sometimes related to the recurring nature of accidents and injuries.
19.4
ACCIDENT REPORTS AND RECORDS
Proper reports and records of accidents have to be maintained by an organisation in the prescribed manner, and complete information about an accident and the circumstances attending the death or disablement of a worker or any other serious injury to him has to be submitted to the government. Accident records should be maintained in detail and should contain the following items: i. The total number of employees in the unit who are exposed to different types of accidents ii. The severity of the accident -whether it resulted in a broken bone, a deep cut-and the time that was lost as a result of it iii. The kind of work or occupation in which the employee was engaged iv. The date, time and day, and the shift during which the accident occurred v. The total number of year during which the employee was engaged on that particular job when the accident occurred vi. Personal data, including the age and health of the injured employee vii. The immediate cause of the accident- whether it was the result of a malfunctioning of a machine, or whether the employee failed to use the safety devices provided for the purpose of preventing accidents, etc.
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19.5
SAFETY ORGANISATION
A safety director and a safety committee be set up by an organization. The following facts should be given due consideration in any safety organization programme: i. Safety programmes must have top management approval, sanction and support. ii. Responsibility for safety must rest with the supervisory personnel. iii. Safety must be given equally important consideration with that of other factors of production. iv. Provision must be made for prompt action in the elimination of mechanical and personal hazards. v. A definite safety programme must be developed to educate all employees in safety and to secure their active cooperation in the effort to eliminate accidents. vi. Safety must be included in all phases of planning, purchasing, supervision and operation. Appraisal of Employee Attitude to Safety Programmes A knowledge of the attitude of the employees to the safety programmes developed for them and the specific measures adopted for that purpose - such as the setting up of bulletin boards, displays of safety measures, pamphlets, booklets, posters, magazines and motion pictures which highlight them would help the safety director in presenting safety information to the employees of an organisation. He and or the safety committee may discuss the problems of safety with the employees, get and act on their suggestions, and undertake attitude surveys. Safety Engineering The adoption of proper engineering procedures to minimise and, if possible, eliminate work hazards is fundamental to any organised safety programme. New products, processes and machines are designed, and full attention is paid to safety engineering in design, layout and installation. The most important function of safety engineering is to eliminate the risks posed by the operation of machines, by the processes of the manufacture of products and by the structure and layout of plants and equipment. Safety equipment is made available to an employee at a subsidised price or free of charge. The machinery which poses danger to the employee working on it is generally covered or fenced carefully when it is in operation. Safety glasses or plastic eyeshields to protect the eyes from the hazards of fire, glare, dust and fumes; hard protective caps to prevent head injuries; gas masks to prevent the inhalation of poisonous fumes; gloves to protect the hands against acids and explosive materials; safety shoes, overalls, skin guards and safety apparel for the protection of the body all these are provided for the use of workers.
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Materials handling is the most prolific source of accidents. Hence, the flow of materials during all the stages of the manufacture of a product should be properly planned to eliminate hazards. The flow of work between machines and departments should be facilitated by the provision of proper equipment, and there should be welldesigned and wellmarked storage spaces, aisles and roadways to ensure risk-free performance of work. In addition, there should be a welldesigned system for the detection, prevention and control of fires. For this purpose, adequate firefighting equipment, including foam, vapour liquid, carbon dioxide, dry chemical fire extinguishers, high pressure water lines, sprinklers, fire pads and sand and axes should be maintained. Inflammable liquids and materials expose workers to a variety of risks during their handling and storage of them. It is necessary, therefore, to exercise the utmost care in the handling and storage of such materials, preferably in underground tanks or in places which are at some distance from the place of work, or in safety containers with automatically closing lids. A programme of fire control should necessariy include periodic inspection of firefighting equipment and of the devices which have been installed to prevent the outbreak of a fire. The science of ergonomics is being increasingly made use of to develop better and safer working conditions for employees. This science deals with the physiological and anatomical aspects of man and his interaction with the environment in which he works. As an aid to safety, colours are used to identify and mark out the dangerous parts of a machine. Yellow or orange colours are used to indicate dangerous materials or parts of equipment; green, white, grey or black for safe materials or part of a machine; blue for protective materials, and red for fire-fighting and fire protection materials and equipment. The British Standards Institute has recommended a three-colour code: Red, to indicate that a person should stop; orange, giving a warning of danger, and green to identify safety equipment, escape routes, and first aid boxes. The Institute has also recommended that red colour should be square chequered with white, except on fire-fighting equipment and stop buttons; and the orange colour should be contrasted with the black colour in alternate diagonal stripes. As an aid to those who are colour blind, the red may be indicated with a circle round it, the orange within an equilateral triangle, and the green within a rectangle. Safety Education and Training Safety education for all levels of management personnel and for employees is vital for any successful safety programme. The goal of safety education is twofold: to develop safety consciousness among employees and build up a favourable attitude on their part towards safety measures and precautions; and, secondly, to ensure safe work performance on the part of each employee by developing his skill in the use and operation of safety equipment. Training is concerned with providing immediate job knowledge, skills and methods of work, besides bringing home to the employee an awareness of the hazards he is likely to encounter in the course of his work in particular department or a particular job, and impressing upon him the need for a prompt report of any personal injury, for an understanding of the causes of accidents and how they may be prevented, the importance of good house-keeping and of handling materials safely.
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He is also taught the principles of first aid, the need for avoiding machine hazards, for taking precautions to prevent the outbreak of a fire, for using hand tools properly and for protecting his eyes. Safety publicity should be undertaken by displaying posters and the screening films, and by arranging safety suggestion schemes. Safety Contests Some companies encourage safety competitions among their departments with a view to bringing about a reduction in the number of accidents. Disciplinary Action To enforce plant rules governing safety, employees are reprimanded, fined, laid off or even discharged if they are found guilty of any violations. While positive motivation to ensure the observance of safety rules is looked upon as the best approach to the problems of safety, a negative motivation, in the form of punishment does have its own proper place in safety programmes. Accident Analysis and Tabulation The Safety Director must investigate and report on every accident. He should, moreover, periodically summarise all the injuries which have been sustained by employees during a particular period of time, and classify them plant-wise, department-wise and shift-wise. He should also classify the causes and kinds of those injuries, and mention whether they were disabling or not. Records are useful because they help one to identify the areas in which further action is called for to achieve improvements in safety programmes and compare the present records with the past ones.
19.6
BASIS OF SAFETY PROGRAMME AND POLICY
Basically, the requirements of our safety programme are: To provide a safe work environment. This includes a safe and a clean plant, safe and wellmaintained equipment, and safe materials. To train employees to do their work in a safe and an efficient manner. Safety training must be an integral part of job training. Employees must be taught a safe way of doing their jobs. Everyone should be taught to assume full responsibility for his own personal safety and wellbeing. It should also be impressed upon an employee that he has a duty to his fellow workers and to the company to do his job in a safe way, so that he may not endanger the lives of others or cause damage to, or bring about a loss in material value of, company property.
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To promote participation in safety efforts. To be successful, a safety programme should have the support of everyone for whom it is designed and developed. Every manager must constantly remind his subordinates of their responsibility for the safety of the employees working under them; and he should set a good example by demonstrating his personal commitment to the observance of safety rules. To comply with all the legal safety codes, rules and regulations. It is our duty as managers of the company to be good community neighbours and law-abiding community citizens. To this end we must always be sure that our operations do not abridge the rights of our neighbours or of our community.
Accidents can be prevented. Every level of management must accept this premise and with it the challenge to reduce the accident rate to the absolute minimum. In this way, we shall actively demonstrate our ability and the quality of our leadership.
19.7
ACCIDENT PREVENTION
There are several ways by which accidents can be prevented. Accident prevention depends on the three Es engineering, education and enforcement: the job should be engineered for safety; employees should be educated in safe procedures; and safety rules should be properly enforced. In actual practice, accident prevention boils down to two basic activities reducing unsafe conditions and reducing unsafe acts. 1. 2. Reducing unsafe conditions is the primary duty of safety engineers, who should remove or reduce physical hazards. Unsafe Acts can be Reduced Through proper selection and placement of employees, safety training to new employees in safe practices and procedures and warning of potential hazards; and persuasion and propaganda.
Check Your Progress 1. What is accident proneness?
2. What are the causes of industrial accidents? List out.
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Let Us Sum Up Any unexpected event that causes damage to man and machine are called accident. The causes of the accidents may be individual and environmental. Accident proneness is the mental disposition to have accidents repeatedly. Safety programmes aims at minimizing and eliminating the work hazards. Accident can be prevented by safety education programmes, safety contests, maintaining and analyzing accident records and disciplinary actions.
Model Questions 1. 2. Write an essay on industrial accidents and its prevention. Critically evaluate the safety measures taken up in the industries.
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LESSON-20 INDUSTRIAL HEALTH AND SECURITY

Contents 20.0 20.1 20.2 20.3 20.4 20.5 20.6 Aims and Objectives Importance of Industrial Health Occupational Hazards and Risks Occupational Diseases Statutory Provisions under the Factories Act Industrial Hygiene Department Industrial Health Programme
20.0
AIMS AND OBJECTIVES
Industrial health is the prevention and maintenance of physical, mental and social wellbeing of workers. The basic objective of industrial health is conservation and prevention of occupational diseases. In this lesson you will learn the following: Normal occupational hazards and risks to the employees Occupational diseases as the results of physical and environmental conditions Statutory provisions to maintain industrial health and safety
The term health is a positive and dynamic concept and implies more than an absence of illness. The W.H.O. has defined health as a State of complete physical, mental and social well being and not merely the absence of disease or infirmity. Industrial health refers to a system of public health and preventive medicine which is applicable to industrial concerns. According to the joint I.L.O-W.H.O. Committee on Organisational Health, industrial health is: (i) the prevention and maintenance of physical, mental and social well being of workers in all occupations; (ii) prevention among workers of ill health caused by the working conditions; (iii) protection of workers in their employment from risks resulting from factors adverse to health; and (iv) placing and maintenance of the worker in an occupational environment adapted to his physical and psychological equipment.
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The basic objective of industrial health is the prevention of disease and injury rather than the cure of disease. It involves a programme of health conservation and prevention of occupational disease. The aim of industrial hygiene is The promotion and maintenance of the highest degree of the physical, mental and social well being of workers; the prevention of factors which make for ill health in their working conditions; their protection in their occupations from risks arising from factors which are adverse to the maintenance of health; the placing and maintenance of the worker in an occupational environment which is adapted to his physiological and psychological equipment; and, to summarise, the adaptation of work to man and each man on his job.
20.1
IMPORTANCE OF INDUSTRIAL HEALTH
Since a large number of workers spend a great deal of their time in an industrial setting, their environment is not usually conducive to a healthy life. Moreover, malnutrition, unsanitary and psychological conditions, and the strains and stresses under which they live impair their health. On the one hand, efficiency in work is possible only when an employee is healthy; on the other, the industry (in which he is employed) exposes him to certain hazards which he would not meet elsewhere, and which may affect his health. It is with the intention of reducing these hazards and improving the workers- health that the discipline of industrial health came into being as a branch of public health in its own right. The symptoms of bad health are a high rate of absenteeism and turnover, industrial discontent and indiscipline, poor performance and low productivity. That is the reason why when industrial health programmes are introduced, both employers and workers benefit. A reduction in the rate of labour turnover, absenteeism, accidents and occupational diseases has been the natural consequence of industrial health programmes. The other benefits, which cannot be easily measured, include reduced spoilage, improved morale, increased productivity per employee and a longer working period of an individual.
20.2
OCCUPATIONAL HAZARDS AND RISKS
Employees in an industrial establishment are often subject to certain health hazards and occupational diseases. According to Roland Blake the normal occupational health hazards may be classified into chemical, biological, environmental, and psychological hazards. Chemical substances, such as carbon monoxide, carbon dioxide nitrogen oxide, sulphur dioxide, hydro--carbons, ozone, acetic acid, fumeric acid and tannic acid, limes and alkalies cause injury when they are absorbed by the skin, or when they are ingested or inhaled. The results are often disastrous. Workers may suffer from respiratory diseases, skin diseases, allergy, heart disease, cancer and neurological disorders, all of which often shorten life expectancy. The disease or sickness may be chronic or acute, and it may appear after a long dormant period, when it may be difficult or impossible to treat it effectively. Often, a disease may be difficult to diagnose because its symptoms are not
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apparent at all. Gases, fumes and dust raised by such processes as grinding and crushing of stones or minerals may be inhaled by workers and cause a serious injury, or even death. Coalminers often suffer from what is known as black lung disease. Employees in manufacturing industries are often exposed to such health hazards as arise from dust and fumes, while those working on lead or zinc smelters often show indications of zinc or lead poisoning. Among the biological hazards are included diseases which are caused by bacteria, fungi, viruses, insects, dietary deficiencies, excessive drinking, imbalances, allergies, brain fever, tetanus, emotional stresses and strains with their psychological concomitants of fear, rage, worry and anxiety. All these affect the health of employees. Among the environmental hazards may be included radiation, noise, vibrations, shocks, and improper atmospheric conditions. The increasing use of X rays or radioactive isotopes exposes the workers, in an industrial setting to the risks of undetected radiation and may cause redness of eyes, and pain, genetic disorders, cancer, sterility or even death. Noise is another serious problem. Many manufacturing processes are accompanied by such noise as is capable of impairing the hearing of a worker, making him irritable and inefficient, and making it difficult if not impossible for him to hear any warning cries of an impending danger. It has been found that a worker may suffer substantial damage if the noise level is above 80 decibels (1,200 cycles per second). There may be temporary or permanent deafness, nervousness, difficulty in communication and loss of efficiency. Vibrations and shocks may cause nerve injury and inflammation of the tissues of the joints of the operators hands. A very low vibration-less than one cycle per second is often encountered in certain vehicles, ships and aeroplanes and this often causes motion sickness. Among atmospheric conditions are included such hazards as arise from inadequate ventilation, improper lighting, or very high or very low temperature in the place of work. Inadequate ventilation and improper lighting impair vision, leading to the inefficiency which results from imperfect visibility, headaches, or glare with fatigue and eye-strain. In hot and moist conditions, heavy physical or mental work exhausts a worker. Fatigue and boredom, the result of long and uninteresting hours of work, create conditions of discomfort and consequent disability which makes it difficult for a worker to be attentive, which slows down his reflexes and which often induces him to ignore certain necessary precautions and all these are capable of causing fatalities. Excessive heat may cause burns, heat strokes, heat cramps and increased accident rates.
20.3
OCCUPATIONAL DISEASES
Occupational diseases are the results of physical conditions and the presence of industrial poisonous and non poisonous dust in the atmosphere. Raw materials, products, by products and waste products may in the process of being extracted or manufactured enter the body in such quantities as to endanger the health of the Workers, For example, workers on lead (as cable makers, lead pipe makers, compositors, painters, plumbers etc.) are subject to Painters colic or wrist drop disease which may result in loss of appetite, nausea, vomiting, stomach
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pains, muscular and joint pains, anemia and intestinal disorders; and it might even cause death. Similarly, the barometer and thermometer makers, laboratory Workers and electric meter repairers, refiners of gold and silver are normally affected by mercury poisoning, through long and continued inhalation of mercury vapour. Manganese miners, Ferromanganese workers and dry cell battery makers are often affected by inhalation and absorption of manganese dust or fumes. Workers in potteries, ceramics, metal grinding, refractory state pencil mines or stone mines, road building, construction work, are affected by respiratory diseases, leading to spitting of blood and a painful death due to silicosis. Persons engaged in handling wool, hoofs, hides, hair bristles, or animal caracasses are affected by anthrax. Telegraphists suffer from telegraphisis cramps because of the degree of accuracy, speed of work and concentration required in the job. In silk and cotton weaving industry, the workers suffer from inhalation of dust which causes, respiratory diseases, neuritis, high blood pressure, asthma, heart disease, diabetes, obesity and industrial dermatitis. There are, moreover, the negative effects arising from irregular employment and from the injury inflicted on the physique and morale of an employee by sandwiching periods of over exertion between intervals of idleness. Occupational diseases usually develop over an extended period of time. They are slow and generally cumulative in their effects, are irreversible and often complicated by nonoccupational factors. They are the result of constant exposure to the influence of toxic substances of micro organisms, of airborne contaminants and stress producing elements. The Schedule attached to sections 89 and 90 of the Factories Act, l948, specially intends the following occupational diseases which have to be notified to the authorities under the Act Lead poisoning, including poisoning resulting from any compound of lead or its sequalae Lead tetra ethyl poisoning Phosphorous poisoning Manganese poisoning or its sequalae Mercury poisoning Arsenic poisoning Poisoning from nitrous fumes Carbon bisuiphide poisoning Benzene poisoning Chrome ulceration Anthrax
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Silicosis Poisoning from halogens or halogen derivatives of the hydro-carbon of the alphabetic series Pathological manifestations due to a) Radium or other radio-active substances and b) X rays Primary cancer of the skin Toxic jaundice due to poisonous substances Dermatitis due to the action of mineral oil Bysionosis Asbestosis Toxic anaemia Occupational or contact dermatitis caused by direct contact with chemicals and paints Loss of hearing induced by noise
In addition to the above, the following diseases have been included under the Workmens Compensation Act Occupational cataract caused by infrared radiation Telegraphists cramp Begassoise
20.4
STATUTORY PROVISIONS UNDER THE FACTORIES ACT
The Factories Act, 1948, insists that the following preventive measures must be adopted in industrial establishments: (i) Cleanliness: Every factory should be kept clean and free from effluvia - from drain and privy refuse, and from dirt. It should be whitewashed at least once in 14 months or painted at least once in five years. Floors should be swept and cleaned, at least once every week, with some disinfecting fluid. (ii) Disposal of Waste and Effluents: Effective arrangements should be made for their disposal and, or treatment. (iii) Ventilation and Temperature: Provision should be made for the circulation of fresh air, and temperature should be maintained by building walls and roofs of such materials as would keep it within reasonable limits. High temperature may be controlled by whitewashing, spraying and insulating the factory premises and by screening outside walls, roofs and windows.
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(iv) Dust and Films: Effective measures should be taken to prevent, or at any rate reduce, the inhalation and accumulation of dust and fumes. Exhaust appliances should be used neat the point of the origin of dust and fumes. (v) Lighting: Sufficient and suitable lighting, natural or artificial or both should be made available in the factory premises. (vi) Overcrowding: No room should be overcrowded. There should be at least 500 cu.ft. of space for every worker. (vii) Drinking Water: A sufficient quantity of cool drinking water should be made available for the employees throughout the year, particularly during the hot summer months. (viii) Privy: Adequate latrines and urinals should be separately provided for men and women employees. (ix) First Aid Appliances: There should be an adequate number of boxes containing first aid materials, qualified personnel to administer first aid, and an ambulance or at least a room where an injured employee may be given first aid.
20.5
INDUSTRIAL HYGIENE DEPARTMENT
In every large industrial unit, there is a separate department of Industrial Hygiene which is generally a part of the medical department. In some, it is attached to the safety department: in others, its personnel is scattered between the medical and safety departments. The officer in charge of the industrial hygiene unit is generally one who has been trained in such areas as physiology, biochemistry, biophysics, environmental engineering, toxicology and psychology. When, however, he does not have the knowledge and skills which are required for the solution of particularly complex environmental health problems, he enlists the cooperation and assistance of consultants.
20.6
INDUSTRIAL HEALTH PROGRAMME
Every industrial unit has a positive policy which aims at maintaining the good health of employees whether they are on the job or off the job. Some units run mental health programmes as well. A comprehensive industrial health programme not only ensures the good health of employees but also leads to a lowering of the rate of absenteeism and of health insurance costs, and results in higher productivity and improved morale. A comprehensive industrial programme should include
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A professional staff of physicians and nurses Adequate facilities for emergency care and injuries sustained in the course of work, and for the conduct of pre-employment and post-employment medical check-ups Proper first aid treatment for occupational injuries and diseases A careful post-employment medical examination of those who are exposed to particular occupational hazards: Reasonable first aid treatment of employees for non-occupational ailmentsfor example, for cold, sore throat, skin disorders, headaches and gastrointestinal upsets Information and educational services which aim at promoting the health of employees The maintenance of adequate and confidential medical records Co-operation of the company medical officer with those who are responsible for accident prevention and control of environment with a view to achieving an integrated employee health programme Co operation with public health authorities in implementing a mass innoculation programme and other measures for the prevention of communicable diseases Advice on, and supervision of, the provision and maintenance of satisfactory sanitary conditions in the factory premises
Satisfactory physical and mental health services have to be provided if the loss of working days in an industrial establishment is to be reduced. For this purpose those who suffer from communicable diseases should be isolated from the others, and an adequate provision should be made for the detection and treatment of remedial diseases. Moreover, all industrial employees must necessarily be innoculated when there is imminent danger of the outbreak of epidemics, such as small pox, cholera and typhoid. Check Your Progress 1. What is industrial health?
..
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Let Us Sum Up Industrial health is the state of complete physical, mental and social well being of the workers and not merely the absence of diseases or infirmity. Since a large number of workers spend a great deal of their time in an industrial setting, their environment must be conducive to healthy life. Occupational diseases are the result of physical conditions and the presence of industrial poisonous and nonpoisonous dust in the atmosphere. It is the responsibility of the industrial health department to ensure a comprehensive industrial health programme. Model Questions 1. 2. 3. What are the occupational hazards?-Describe. List out and explain the common occupational hazards. Write on the statutory provisions for maintaining industrial health.
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UNIT - V
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LESSION-21 INDUSTRIAL RELATIONS

Contents 21.0 21.1 21.2 21.3 21.4 21.5 21.6 Aims and Objectives Definition of Industrial Relations Objectives of Industrial Relations Participants/Variables in Industrial Relations Aspects of Industrial Relations Industrial Relations Programme Functional Requirements of a Successful Industrial Relations Programme
21.0
AIMS AND OBJECTIVES
The aim of industrial relations is to bring about good and healthy relations between employers and employees. The concept industrial relations includes the relationship among employer, employee and society in the course of running of an industry. In this lesson we discuss The significant objectives of industrial relations Basic aspects and variables determining industrial relations The components of industrial relations programmes
Introduction Industrial relations pose one of the most delicate and complex problems to modern industrial society. A progressive, status-dominated, secondary grouporiented, universalistic, aspirant and sophisticated class of workers has come into being, who have their own trade unions, and who have thus gained a bargaining power which enables them to give a tough fight to their employers to establish their rights in the growing industrial society. As a result, the government has stepped in and plays an important role in establishing harmonious industrial relations, partly because it has itself become an employer of millions of industrial workers, but mainly because it has enacted a vast body of legislation to ensure that the rights of industrial workers in private enterprises are suitably safeguarded.
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Besides, rapid changes have taken place in the techniques and methods of production. Long-established jobs have disappeared, and new employment opportunities have been created, which call for different patterns of experience and technical education. Labour employer relationships have, therefore, become more complex than they were in the past, and have been given a sharp edge because of widespread labour unrest. In the circumstances, a clear understanding of the factors which make for this unrest and which are likely to eliminate it would be a rewarding experience for anyone who is interested in industrial harmony.
21.1
DEFINITION OF INDUSTRIAL RELATIONS
Industrial relations are an integral aspect of social relations arising out of employer-employee interaction in modern industries, which are regulated by the State in varying degrees, in conjunction with organised social forces and influenced by the existing institutions. This involves a study of the state, the legal system, workers and employers organisations at the institutional level and of the patterns of industrial organisation (including management), capital structure (including technology), compensation of the labour force, and a study of market forces all at the economic level.
21.2
OBJECTIVES OF INDUSTRIAL RELATIONS
In addition to their primary objective of bringing about good and healthy relations between employers and employees, industrial relations are designed (a) To safeguard the interests of labour and of management by securing the highest level of mutual understanding and goodwill among all those sections in the industry which participate in the process of production; To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country; To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequent absenteeism; To establish and nurse the growth of an Industrial Democracy based on labour partnership in the sharing of profits and of managerial decisions, so that an individuals personality may grow to its full stature for the benefit of the industry and of the country as well, To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, and fringe benefits; To establish government control of such plants and units as are running at a loss or in which production has to be regulated in the public interest.
(b)
(c) (d)
(e)
(f)
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The State endeavours to correct, through good and harmonious industrial relations, an imbalanced, disordered and maladjusted social order with a view to reshaping complex social relationships following technological advances. It also controls and disciplines both employees and employers, and adjusts their conflicting interests; it protects some and restrains others, and tries to evolve a healthy social order. In other words, the objectives of industrial relations are to facilitate production; to safeguard the rights and interests of both labour and management by enlisting the co-operation of both; to achieve a sound, harmonious and mutually beneficial relationship between employers and employees. According to Kirkaldy, industrial relations in a country are intimately connected with the form of its political government; and the objectives of an industrial organisation may change from economic to political ends. He divides the objectives of industrial relations into four categories Improvement in the economic conditions of workers in the existing state of industrial management and political government Control exercised by the state over industrial undertakings with a view to regulating production and promoting harmonious industrial relations Socialisation or rationalisation of industries by making the state itself a major employer Vesting of a proprietary interest of the workers in the industries in which they are employed
If political objectives are likely to contribute to disunity in the trade union movement, it would be necessary to provide better and more effective safeguards and exercise greater restraint in order to avoid such a situation.
21.3
PARTICIPANTS/VARIABLES IN INDUSTRIAL RELATIONS
The industrial relations system is an organisation of recognised major variables which exert a controlling influence on them. There are there major variables (participants) in industrial relations: (i) Workers and their Organisations: Here, the emphasis is on the members of organisations, the personal characteristics of workers, their cultural and educational attainments, qualifications, skills and attitudes to work, etc. (ii) Managers and their Organisations: Here, the emphasis is on work groups, teams, variations in their sizes, composition and the extent of specialisation they impose. Provision is made for internal communication, for the structure of status and authority, and for such ancillary organisations as trade unions and employers associations.
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(iii) Role of the Government: Here, the emphasis is on the role and responsibilities of governmental agencies, the extent of official intervention, assistance and regulation of working conditions and working communities. These three groups workers, employers, and the government interact within the social and economic environment that prevails at a particular time. It is obvious, then, that every industrial relations system creates its own complex of rules and regulations which govern the place of work and the working community. These rules and regulations may take a variety of forms in different systems; there may be laws and awards of courts, committees or tribunals; there may be agreements, written or sanctioned by custom, usage, practice, or tradition, or which may be the result of government policies or intervention. The characteristics of the participants in industrial relations may, therefore, be restated in the following way: (a) The Workers Organisations: These are mainly political in situationsassociations of employees formed and maintained for the specific purpose of wresting concessions from employers. They acquire power, status and authority by reason of the support they enjoy of their members. Their power is used to fetter a managements discretion and pressure it into yielding to their demand for better and higher wages, for improvement, in their working conditions, for better and more amenities and welfare schemes, etc. As a matter of fact, a trade union is often looked upon as a conflict association, which has strong political and emotional overtones. (b) The Employers Organisations: These are voluntary bureaucratic institutions which are hierarchical in nature and which place reliance on specialisation and division of labour for the attainment of their objectives. They coordinate their activities through a system of graded authority, and make use of a direct system of communication for their orders and directives. (c) The Government: This is a very large bureaucratic organisation, though it may often be a democratic one as well. It tries to regulate the relationships of employers and employees, and keeps an eye on both groups to keep each in line. This relationship is enforced and maintained through labour courts, industrial tribunals, wage boards, investigating and enquiry committees, which lay down principles, norms, rules and regulations, and give awards. All these are placed on the statue book and have to be observed by workers and employers as well.
21.4
ASPECTS OF INDUSTRIAL RELATIONS
It should be noted that the concept of industrial relations has a very wide meaning and connotation. In the strictest sense, it refers to employer-employee relationships, that is, the relationship which emerges from the day-to-day association of management and labour. In its wider sense, the concept includes the relationship between employer and employee in the course of the running of an industry, and may project itself into spheres which may cover the areas of quality control, marketing, price fixation and disposition of profits. However, the phrase industrial relations is generally used in the narrower sense.
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An industry is a social world in miniature. As an association of various persons, workers, supervisory staff, management and employers - it creates an industrial relationship. This association often affects and influences, for better or worse, the economic, social and political life of the whole community. In other words, industrial life creates a series of social relationships which have an impact not only on the relations between employers and employees but also on the industry as a whole and on the community at large. Industrial relations are, therefore, an inherent aspect of industrial life, and may be classified under the following categories Labourmanagement relations at plant and industry level Group relations among various groups of workers Community relations between industry and society
Here, we are concerned with the first category the main purposes of industrial relations are Development of healthy labour-management relations Maintenance of industrial peace and avoidance of industrial strife Development and growth of industrial democracy
(i) Development of Healthy Labour-Management Relations The promotion of healthy labour-management relations presupposes (a) The existence of strong, well-organised, democratic and responsible trade unions and associations of employers in an industry. These organisations help bring about a greater sense of job security among the employees, and assist in the workers increased participation in decision-making, particularly in those decisions which affect the terms and conditions of their employment, and ensure that labour has a dignified role to play in society. They also try to create favourable conditions for negotiations, consultations and discussions with employers so that these may pave the way to better labour-management relations. (b) Collective bargaining and a willingness to accept voluntary arbitration. Collective bargaining pre-supposes an equality of status between two contending groups which are in conflict with each other, and prepares the ground for mutual trust and goodwill which will ensure fair discussion, consultation and negotiation on matters of common interest to both industry and labour. Collective bargaining, plant discipline and satisfactory trade union relations, are the three principal items, which determine the quality of industrial relations. (c) The welfare work undertaken by the government, the trade unions and employers creates and maintains good and healthy labour-management relations and paves the way for industrial peace.
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(ii) Maintenance of Industrial Peace Industrial harmony and peace can be established if (a) A machinery for the prevention and settlement of industrial disputes is provided in the form of legislative enactments and administrative action (for example, the Trade Union Act, the Industrial Disputes Act, and Industrial Employment Act); works committees and joint management councils; conciliation officers and conciliation boards; labour courts, industrial tribunals, national tribunals, courts of enquiry; and voluntary arbitration. (b) The government has armed itself with appropriate powers to refer disputes to an adjudicator when the situation gets out of control and the industry is faced with economic collapse because of strikes, or when it is urgent and in the public interest to so refer disputes for adjudication. (c) The government has the power to maintain the status quo, and exercises it when it discovers that, after a dispute has been referred to an adjudicator, a strike or lockout continues, and that strike or lockout is likely to adversely affect the economic life of the community or create chaotic conditions in an industry. (d) There is provision for bipartite and tripartite forms of the settlement of disputes which operate on the basis of the Code of Discipline in Industry, the Code of Conduct, the Code of Efficiency and Welfare, and on the basis of Model Standing Orders, Grievance Redressal Procedure and the grant of voluntary recognition to trade unions by industrial organizations. (e) Implementation and Evaluation Committees are created and maintained for the specific purposes of ensuring the implementation of agreements, settlements and awards, and of looking into any violations of statutory provisions of the various labour laws. (iii) Industrial Democracy An industrial democracy can be established in a country if: (a) There are Joint Management Councils which endeavour to improve the working and living conditions of employees, to step up their productivity, to encourage suggestions from workers, to assist in the administration of labour laws and agreements, to serve as a channel of communication between management and workers, to Create in the latter a sense of participation in the decisionmaking process and a sense of belonging to an organization (b) There is a recognition of human rights in an industry a recognition of the fact that labour is no longer an article or a commodity of commerce which can be bought and disposed of at the whims and caprices of an employer; that workers are human beings who should be treated as human beings, who should be allowed to develop and keep their selfrespect, so that they may understand and appreciate their role in the organisation to which they belong, and their urge for selfexpression, through close association with the management, may be satisfied
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(c) There is increased labour productivity. The factors which contribute to higher productivity are improvement in the efforts and skills of the workers; improvements in the production design and the process of manufacture, in the materials and equipment used, in layout and methods of work; improvements in research and in the techniques of manufacture, including special studies of technological developments in the industry elsewhere; improvement in output following capital intensification within the framework of the same technology; and improvement in management methods and practice (d) There is suitable material and social environment, to which workers may adjust and adapt themselves while they are at work in an organisation, for it is this environment which would stimulate or depress them, which would improve or harm labour-management relations, particularly if we bear in mind the fact that the environmental grievances of workers have a profound influence on industrial relations It is obvious from the foregoing that the function of industrial relations is to bring about solutions of conflicts between labour and management - conflicts between objectives and values, between the profit motive and social gain, between discipline and freedom, between authority and workers, between bargaining and co-operation; and these solutions should be in the interests of the individual, the group and the community. In a dynamic society, industrial relations should be based on an integrated and synthetic approach, and should aim at the development of a common social, cultural and psychological understanding on the one hand and restraining the conflict or struggle complex on the other. The philosophy behind industrial relations in a democratic set-up is to ensure the dignity and welfare of the individual, so that he may develop into a good citizen, so that he may be free from domination, regimentation or arbitrary authority, whether this authority is exercised by a management and trade union officials or government officials.
21.5
INDUSTRIAL RELATIONS PROGRAMME
A successful industrial relations programme reflects the personnel viewpoint, which is influenced by three main considerations: Individualised thinking Policy awareness Expected group reaction
Individualised thinking makes it imperative for the administrator to consider the entire situation in which the affected individual is placed. Policy awareness underscores the idea of the consistency of treatment and the precedent value of any decision which a management takes; while expected group reaction balances what we know of human nature in groups against an individuals situation in the light of the policy that has been formulated and implemented. In all these
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different circumstances, reality demands that all the three aspects of the personnel viewpoint should be considered at once in terms of the past, the present and the future. This viewpoint is held at all the levels of management from the top to the bottom, from the top executives and staff to the line and supervisory personnel. The staff employed in the industrial relations department should know the limitations within which it has to function. The industrial relations director generally has several assistants who help him to perform his functions effectively; and he usually reports directly to the president or chairman of the board of directors of an organization. The functions of the industrial relations staff are: i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii. xiv. xv. xvi. Administration, including overall organisation, supervision and co ordination of industrial relations policies and programmes. Liaison with outside groups and personnel departments as well as with various cadres of the management staff. The drafting of regulations, rules, laws or orders, and their construction and interpretation. Position classification, including overall direction of job analysis, salary and wage administration, wage surveys and pay schedules. Recruitment and employment of workers and other staff. Employment testing, including intelligence tests, mechanical aptitude tests and achievement tests. Placement, including induction and assignment. Training of apprentices, production workers, foremen and executives. Performance reports or merit ratings. Employee counselling on all types of personnel problems educational, vocational, health or behaviour problems. Medical and health services. Safety services, including first aid training. Group activities, including group health insurance, housing, cafeterial programmes and social clubs. Suggestion plans and their uses in labour, management and production committees. Employee relations, especially collective bargaining with representatives, and settling grievances. Public relations.
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xvii. xviii. xix. xx.
Research in occupational trends and employee attitudes, and analyses of labour turnover. Employee records for all purposes. Control of operation surveys, fiscal research and analysis. Benefit, retirement and pension programmes.
21.6 FUNCTIONAL REQUIREMENTS OF A SUCCESSFUL INDUSTRIAL RELATIONS PROGRAMME

The basic requirements on which a successful industrial relations programme is based are: (a) Top Management Support : Since industrial relations is a functional staff service, it must necessarily derive its authority from the line organisation. This is ensured by providing that the industrial relations director should report to a top line authority - to the president, chairman or vice president of an organisation. (b) Sound Personnel Policies: These constitute the business philosophy of an organisation and guide it in arriving at its human relations decisions. The purpose of such policies is to decide, before any emergency arises, what shall be done about the large number of problems which crop up every day during the working of an organisation. Policies can be successful only when they are followed at all the levels of an enterprise, from top to bottom. (c) Implementation of the policies of an organisation: Adequate practices should be developed by professionals in the field to assist in the implementation of the policies of an organisation. A system of procedures is essential if intention is to be properly translated into action. The procedures and practices of an industrial relations department are the tools of management which enable a supervisor to keep ahead of his job that of the timekeeper, rate adjuster, grievance reporter and merit rater. (d) Detailed Supervisory Training : To ensure that organisational policies and practices are properly implemented and carried into effect by the industrial relations staff, job supervisors should be trained thoroughly, so that they may convey to the employees the significance of those policies and practices. They should, moreover, be trained in leadership and in communications. (e) Follow-up of Results: A constant review of an industrial relations programme is essential, so that existing practices may be properly evaluated and a check may be exercised on certain undesirable tendencies, should they manifest themselves. A followup of turnover, absenteeism, departmental morale, employee grievances and suggestions, wage administration, etc., should be supplemented by continuous research to ensure that the policies that have been pursued are best fitted to company needs and employee satisfaction. Hints of problem areas may be found in exit interviews, in trade union demands, and in management meetings, as well as in formal social science research.
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Check your progress 1. 2. Define industrial relations. What is industrial peace?
Let Us Sum Up Advancements in individuals work behaviour make industrial relations as an essential practice in the organizations. The main objective of industrial relations is to maintain good employer-employee relationship. The personal characteristics of the workers and managers and the role and responsibilities of governmental agencies extent influence on industrial relations. Industrial relations may be of labour-management relations, Group-relations among various groups of workers and Community relations between industry and society. Maintaining industrial peace and establishing industrial democracy are essential tasks. Individualised thinking, policy awareness and expected group reactions are the main considerations that influence industrial relations programme. Model Questions 1. 2. 3. 4. What are the objectives of industrial relations programmes? Discuss. Elaborate the major variables that exert influence on industrial relations. How to develop healthy labour-management relations? Discuss. Illustrate an industrial relations programme.
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LESSON-22 TRADE UNIONISM

Contents 22.0 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 Aims and Objectives Definition and Characteristics Principles of Trade Unionism Why Do Workers Join a Trade Union? Objectives and Functions of a Trade Union How Trade Union Objectives are achieved? Growth of Trade Union Movement Factors Affecting Growth of Trade Unions Features and Weakness of Trade Unionism Essentials of a Successful Trade Union
22.0
AIMS AND OBJECTIVES
One aspect of organizational life that helps define companys culture is the presence of absence of labour unions, in which workers act collectively to protect and promote their interests. Membership in a union can contribute to job satisfaction and productivity and have a powerful influence on employees attitudes toward their jobs and their employers. In this lesson we discuss The Basic principles of trade unions on which they operate The reasons for employees joining trade unions The historical development of trade union movement The success and weakness of trade unions
22.1
DEFINITION AND CHARACTERISTICS
A trade union is any combination of persons, whether temporary or permanent, primarily for the purpose of regulating the relations between workers and employers, or between workers and workers, and for imposing restrictive conditions on the conduct of any trade or business, and includes the federation of two or more trade unions.
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It may be observed that the trade union is an association, either of employees or employers or of independent workers. Secondly, it is a relatively permanent combination of workers and is not temporary a casual. Thirdly, it is an association of workers engaged in securing economic benefits for its members. Fourthly, the character of trade union has been constantly changing. Finally, its origin and growth has been influenced by a number of ideologies. On the basis of the above characteristics, we may define a trade union as A continuous and voluntary association of the salary or wage - earners and engaged in whatever industry or trade, formed for safeguarding the interests of its members, maintaining and improving the conditions of their working lives, raising their status and promoting their vocational interests; and securing better relations between them and their employees, through collective bargaining. Thus, a trade union is a device which enables a group, a class in industry or trade to bargain with any other class or group on equal footing. Such a union is: (i) economically oriented; (ii) an instrument of defence against exploitation; (iii) an outcome of industrialization and implies class distinction.
22.2
PRINCIPLES OF TRADE UNIONISM
Trade unions function on the basis of three cardinal principles. If any one of them is threatened or is in jeopardy, they would fight back. These principles are Unity is strength Equal pay for equal work or for the same job Security of service
22.3
WHY DO WORKERS JOIN A TRADE UNION?
Workers join trade unions because they are constrained by circumstances to do so; and because they want i. ii. To get economic security; that is, they want steady employment with an adequate income To restrain the management from taking any action which is irrational, illogical, discriminatory or prejudicial to the interests of labour. Workers desire that the assignment of jobs, transfers promotions, the maintenance of discipline, lay-offs, retirement, rewards and punishment should be on the basis of a pre-determined policy and on the basis of what is fair and just
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iii. To communicate their views, aims, ideas, feelings and frustrations to the management; that is, they want to have an effective voice in discussions which affect their welfare iv. To secure protection from economic hazards beyond their control; for example, illness, accident, death, disability, unemployment and old age v. To get along with their fellow workers in a better way and to gain respect in the eyes of their peers vi. To get a job through the good offices of a trade union
22.4
OBJECTIVES AND FUNCTIONS OF A TRADE UNION
Broadly speaking, the functions of a modern trade union are very comprehensive - much more so than those of their counterparts in the past; it has, moreover, a clearer perception of its ultimate aims and objectives. Its functions are generally classified into those which are militant or protective, and those which are fraternal, ministrant or positive. Under the former group of functions, a trade union is primarily concerned with obtaining better conditions of work and of employment for its members through such militant activities as strikes and boycotts, which are generally resorted to when efforts at collective bargaining fail to bear results. The latter functions relate to the provision of such benefits as sickness and accident payments. A trade union also offers financial support to its members during strikes and lockouts and during periods of temporary unemployment.
22.5
HOW TRADE UNION OBJECTIVES ARE ACHIEVED?
The objectives of a trade union are achieved by a pursuit of traditional methods. These are i. The organisation of a trade union on the basis of the craft or industry in which its members are employed, such as general unions and professional employees organisations ii. Recognition of a trade union as the only bargaining agent; that is, it is only a representative union which is entitled to advocate the interests of its members. This recognition may be voluntarily forthcoming from a management or forced upon it by its employees; or it may be gained by secret ballot, each member voting in favour of the trade union which he wants to be recognised by the management. In these circumstances, the trade union which is favoured by a majority of the workers in an industry is the one which is recognised by the management iii. Collective bargaining, which is the essence of industrial relations, for it is through collective bargaining that the terms and conditions of employment are determined and under which work is performed satisfactorily
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iv. Union security, which is achieved through a closed shop or a union shop or an agency shop arrangement or some such similar arrangement which gives a trade union control of the hiring, the supervision and the discharge of workers v. Grievance processing and handling procedures, under which grievances are redressed or dealt with by a correction of the situation or by a channelling up of these up the line. When a grievance reaches the chief executive officer, it has to be satisfactorily dealt with by him or sent to an outside statutory agency for settlement vi. Negotiated agreements with the management. These negotiations deal with wages, hours of work, other terms and conditions of employment, personal and job security, increased employee benefits, medical assistance, retirement benefits, and so on vii. Arbitration, by which unsettled or unresolved disputes can be settled by an outside agency viii. Political pressure exercised through legislators who are capable of bringing about changes in labour laws ix. Mutual insurance through common contributions to meet the financial needs of workers when there are stoppages of work Most of the trade unions have not effectively participated in achieving these objectives because i. Of lack of awareness on their part of the importance of mutual insurance ii. Till recently, most trade unions have been resistance organisations and have been looked upon by employers with hostility and distrust iii. They suffer from class conflicts, divergent interests, inter-union and intraunion rivalries, multiplicity, financial weakness, outside leadership, and ignorance of the needs of the rank and file of their members iv. Of the lack of education, cultural backwardness, and social and linguistic heterogeneity of their membership
22.6
GROWTH OF TRADE UNION MOVEMENT
The trade union movement in India started rather late, though the industrialisation of the country began about 1850. The first trade union was founded by Mr. N. K. Lokhande in 1890, and was known as the Bombay Mill Hands Association. This was followed by the Amalgamated Society of Railway Servants in India, 1897, the Printers Union of Calcutta, 1905, the Madras and Calcutta Postal Union, 1907, and the Kamgar Hitwardhak Sabha 1910. All these trade unions aimed at promoting welfare activities for workers, spreading literacy among them and redressing their grievances by constitutional methods. They were, however, not trade unions in the true sense of the phrase but rather social unions, and they were completely free from even the most rudimentary
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touch of radicalism. The movement was for the workers rather than by the workers, and was generally confined to the somewhat educated class of workers. As a result, it did not make much head way among those employed in the textile, mining and plantation industries. The leadership in this movement was provided mostly by social reformers, careerists and politicians-cum-nationalists. The movement developed somewhat during the First World War. Spiralling prices, the Swaraj Movement, the Russian Revolution and the setting up of the International Labour Organisation (the ILO)-all these affected the ideas of the workers, and intensified the sense of class consciousness among them. By 1920, there was a fairly large class of industrial employees, many of whom joined the various unions - the Indian Seamens Union, the Madras Textile Labourers Union, the Jamshedpur Labour Association, the G.I.P. Workers Union, and the Colliery Employees Association of Jharia. The Ahmedabad Textile Labour Association came into being following the initiative taken for that purpose by Mahatma Gandhi, which was the forerunner of the Indian National Trade Union Congress set up in 1947. National leaders provided the political climate in which the trade union movement throve. At the same time, the manner in which it was conducted generated a mounting sense of bitterness among the employers, for trade unions were generally somewhat loosely formed organisations which came into being primarily for the purpose of getting higher wages for workers. During the Second World War, there were big strikes, which made it possible for labour to organise a larger number of trade unions. As a result, a qualitative change came about in the trade union movement, which made it possible for labour to participate in negotiations with employers and in tripartite deliberations. At present, there are nine Central Trade Unions and a large number of registered federations of unions in various industries and occupations. Nine Central Unions I.N.T. U.C. (Ruling Congress) N.L.O. (Old Congress) A.I.T.U.C. (C.P.1.) C.J.T.U. (C.P.M.) U.T.U.C (at Lenin Sarini) U.T.U.C. (at Central Avenue Calcutta) (Radical Party) H.M.S. (Praja Socialist) H.M.P. (Samyukta Socialist Party) Bharatiya Mazdoor Sangh (Jan Sangh)
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Federations of Trade Unions All-India Bank Employees Association National Federation of Indian Railwaymen AllIndia Post and Dock Workers Federation National Federation of Post and Telegraph Workers All -India Mine Workers Federation Indian Federation of Working Journalists
The five principal trade unions are The INTUC: This labour organisation has 3,135 affiliated trade unions with a total membership of 30, 70,795 workers. It has strong roots in West Bengal, Assam, Gujarat, Bihar and Maharashtra. The largest number of its members are drawn from the textile industry in Bombay and Ahmedabad, from the hosiery industry, the tea plantations in Assam and West Bengal, the jute industry in West Bengal, and the transport and miningcummetallic industries. The INTUC was the labour wing of the Congress Party. The AITUC was the second largest federation of trade unions, which are 2,879 in number, claiming membership of 26.41,301 workers. It is very strong in West Bengal, Tamil Nadu, Kerala, Andhra Pradesh, Punjab and Delhi. Its members are drawn mostly from the engineering, petroleum and building and construction industries. The AITUC is affiliated to the Communist Party of India. The HMS was the third largest federation with 635 trade unions and a membership of 11,44, 164 workers. Its members are mostly drawn from the railways, cotton textiles, coal mining and engineering industries, and from among those who are employed in the posts and telegraphs department of the government. The HMSs political inspiration is drawn from the Praja Socialist Party. The UTUC claims that 469 trade unions are affiliated with it and that it has membership of 363,287. Its influence is the greatest in West Bengal, Bihar, Kerala and Tamil Nadu. It is powerful in the plantations industry, in agriculture and among textile, port, dock and shipping workers; its political affiliations are with left-wing parties. The Centre of Indian Trade Union (CITU) was formed by CPM workers in 1970, while the National Council of Central Trade Union was established in 1962 with the active co-operation of Christian trade unions and the political support of the then Swatantra Party. The CITU has 2,231 affiliated Unions, with 11, 12,328 members.
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22.7
FACTORS AFFECTING GROWTH OF TRADE UNIONS
The trade Union movement has gathered momentum in the post- independence period. The factors governing its rapid growth are: international influences, the pressure of trade union rivalries which are often the result of political or ideological differences, the governments industrial relations policies which have provided for compulsory adjudication and conferred special privileges on registered trade unions, and the desire of the workers for unity so that their interest may be safeguarded particularly when managements resort to discharges, dismissals retrenchment lockouts, lay-offs, etc. It may be pointed out here that many trade unions have come up because of the stresses and strains of industrial development. They are, therefore, the direct offshoots of the industrial situation in the country. In the early stages of their development trade unions were looked upon as troublemakers and renegades in the context of the prevailing mores and norms of society. Now they are considered to be an essential part of the industrial scene, and are an important Socio-economic institution in the country. To begin with, trade unions were agitational, threatening and unreasonable organisations. They have now developed at least most of them have so developed into persuasive and peaceful organisations.
22.8
FEATURES AND WEAKNESS OF TRADE UNIONISM
A brief survey of the trade union movement in India indicates the following broad features of its growth and the weaknesses from which it has suffered: (i) While the economic hardship of the workers have been the latent motivating force behind the origin and growth of the trade union movement, the impetus for it has been provided by the major political parties in the Country. (ii) Influenced by various historical and institutional factors and by developments in the social, economic and political fields, trade unions have assumed a distinct political character. This fact is evident from their political affiliations, from the exploitation of trade unions by politicians, and from interunion and intra-union rivalries. (iii) The political involvement of trade union leaders and union rivalries has weakened the trade union movement. So have the proliferation of trade unions, the absence of functional unity among them, their irregular and small membership, the many unsuccessful strikes which they have sponsored, and the limited number of welfare programmes which they have sponsored and supported. (iv) The control which political leaders have acquired over trade unions, the backwardness of the workers and their fear of victimisation have discouraged them from actively participating in trade union activities. As a result, trade unions are not as strong as they should be.
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(v) Trade union activity is generally concentrated in metropolitan centres where large-scale industries are located. Here, again, it is the manual workers who are covered by trade union activity. The total membership of trade unions is only a small part of the total number of wage-earners. As a result, the trade union movement has touched only a small number of the working class population. (vi) Many trade unions are small and have a small number of members. They are, therefore, not in a position to engage the services of experts to advise and guide them, and help them to face the challenge of employers. In other words, their financial position is weak; their bargaining position is weak; and they are not able to make their influence felt. (vii) Trade unions, which have grown very slowly, have not developed as effective voluntary organisations because of: The unrealistic labour policies of the government, idealistic and irrelevant notions of morality and the niceties of democratic behaviour which have stood in the way of formulating and implementing realistic policies Moral idealism about goals and optimism about achieving them The governments encouragement of weak and dependent trade unions
(viii) The loose and amorphous nature of trade union organisations, the majority character of labour, casteism, regionalism and linguism which have divided the workers into heterogeneous groups, and the hostile attitude of the employersthese are some of the other weaknesses and problems from which trade unions suffer. Trade unions can become strong and effective organisations if the following suggestions are acted upon: (i) Paid union officials should be employed, so that they may devote their whole time to union work. (ii) Leadership qualities should be developed among the rank and file, it would be desirable to initiate and implement a reorientation policy so that working class leadership may be dissociated from political leadership and may be freed from purely political influences. (iii) It should be the constant endeavour of policy-makers to aim at the unity of trade union organisations, so that they may be brought together on the basis of a common programme of methods, objectives and procedures. In this way, they would become strong bargaining agents of their members. (iv)There should be only one trade union in each industry, so that union rivalry may be avoided. (v) Due recognition should be given to trade unions as the legitimate bargaining agents of workers.
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(vi)The functions of trade unions should be widened and broadened. In addition to safeguarding the economic interests of their members, they should be encouraged to assume social responsibilities. As far as possible, trade unions should be drawn into participation in the development programme of the country.
22.9
ESSENTIALS OF A SUCCESSFUL TRADE UNION
To be successful, a trade union: (i) Should be an enlightened one, so that it may be able to guide and direct the trade union movement properly. This presupposes the existence of a correct leadership which is not prepared to sacrifice the interests of the workers to imported doctrinaire enthusiasm but desires to hack a highway for them to attain their stature as participants in the new order of things. (ii) Should have a solid foundation, so that it may be strong enough to achieve success in the realisation of its objective. (iii) Should have clearly enunciated objectives and a coherent and well-conceived policy; and it should consider itself as a business organisation which requires careful planning and sound organisational methods for its success. (iv) Should be run by the members for the members; that is, its leadership should come from the rank and file of its members, and it should be subject to their support or rejection. (v) Should have honesty and integrity of purpose; that is, it should be honest not only in financial matters; its integrity should be allinclusive, and should extend to its relationship with employers, to the formulation of its policies and the evaluation of its performance, and to what it says to its own members. (vi) Should look beyond its own horizon, and recognise and fulfill its proper role in the life of the nation and of the community in the midst of which it lives and functions. (vii) Should have a sense of responsibility; that is, it is necessary that It should be internally strong so that it may be effective in Protecting the interests of the workers It should use its economic power in a careful and responsible way; that is, it should be aware of the existing realities in terms of the opportunities it has to bring about an improvement in the living conditions of its members It should be democratic so that the workers right of self-government acquires a reality.
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Check Your Progress 1. Explain the reasons for establishing trade unions in organizations. 2. List out the essentials of successful trade union. Let Us Sum Up A trade union is any combination of persons, whether temporary or permanent, primarily for the purpose of regulating the relations between workers and employers, or between workers and workers, and for imposing restrictive conditions on the conduct of any trade or business, and includes the federation of two or more trade unions. The basic principles of trade unions are unity, equal pay for equal work and security of service. Workers join unions for various reasons and the growth of trade unions has a long history. National and international influences, governments industrial relations policy and other similar factors affect the growth of trade unionism. The trade unions have some weaknesses as well as success strategies. Model Questions 1. 2. Explain the principles and objectives of trade unions. How the objectives of trade unions are achieved? Trace the history of trade unions.
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LESSON-23 GRIEVANCE HANDLING

Contents 23.0 23.1 23.2 23.3 23.4 23.5 23.6 Aims and Objectives Meaning of Grievance Causes or Sources of Grievances Need for a Grievance Procedure Grievance Redressal Machinery Grievance Procedure Steps in Unionised Organisations Basic Elements of a Grievance Procedure
23.0
AIMS AND OBJECTIVES
One aspect of union activity that affects employee attitudes and behaviours is the grievance process. Specified in union contracts, the grievance process establishes a formal mechanism for airing and resolving worker complaints. In a broader sense, the grievance process can be useful for both workers and managers. In this lesson we discuss The meaning and sources of grievances in the industry The steps in grievance redressal procedure The basic elements of a grievance procedure
There is hardly a company or an industrial concern which functions absolutely smoothly at all times. In some, the employees have complaints against their employers, while in others it is the employers who have a grievance against their employees. These grievances may be real or imaginary, valid or invalid, genuine or false. Broadly speaking, a complaint affecting one or more workers constitutes a grievance.
23.1
MEANING OF GRIEVANCE
The International Labour Organisation defines a grievance as a complaint of one or more workers in respect of wages, allowances, conditions of work and interpretation of service stipulations, covering such areas as overtime, leave, transfer, promotion, seniority, job assignment and termination of service. On an analysis of various definitions, it may be noted that:
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(i) Grievance is word which covers dissatisfaction and which has one or more of the following characteristics: it may be unvoiced or expressly stated by an employee it may be written or verbal It may be valid and legitimate, untrue or completely false, or ridiculous It may arise out of something connected with the organisation or work
(ii) An employee feels that an injustice has been done to him. In other words, grievances are feelings, sometimes real, sometimes imagined, which an employee may have in regard to his employment situation. Whenever there is any discontent among employees, it is bound to result in a turmoil which may affect the interests of the management very adversely. Grievances generally give rise to unhappiness, frustration, discontent, indifference to work, poor morale: and they ultimately lead to the inefficiency of workers and low productivity. A personnel administrator should, therefore, see to it that grievances are redressed at the earliest possible moment, failing which the whole edifice of the organisation may trumble down. He must know and understand the causes which lie behind grievances, and how these may be set right. He should assist the foreman and supervisor and other members of the line staff to ensure that grievances are properly handled by them. 5.3.2 Causes or Sources of Grievances From a practical point of view, it is probably easier to list those items that dont precipitate grievances than to list the ones that do. Just about any factor involving wages, hours or conditions of employment has and can be used as the basis of grievance. An employee is dissatisfied and harbours a grievance when he feels that there has been an infringement of his rights, that his interests have been jeopardised. This sense of grievance generally arises out of misinterpretation or misapplication of company policies and practices. Bethel and others have given typical examples of workers grievances. These are: Concerning Wages i. Demand for individual adjustment; the worker feels that he is underpaid. ii. Complaints above incentives; piece rates are too low or too complicated. iii. Mistakes in calculating the wages of a worker.
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Concerning Supervision i. Complaints against discipline; the foreman picks on him; inadequate instructions given for job performance. ii. Objection to having a particular foreman; the foreman is playing favourites; the foreman ignores complaints. iii. Objections to the manner in which the general methods of supervision are used: there are too many rules; regulations are not clearly posted; supervisors indulge in a great deal of snooping. Concerning Individual Advancement i. Complaint that the employees record of continuous service has been unfairly broken. ii. Complaint that the claims of senior persons have been ignored; that seriously has been wrongly determined; that young workers have been promoted ahead of older and more experienced employees. iii. Charges are made that disciplinary discharge or lay-off has been unfair; that the penalty is too severe for the offence that is supposed to have been committed, that the company wanted to get rid of the employee; hence the charges against him. General Working Conditions i. Complaints about toilet facilities being inadequate: about inadequate and/or dirty lunch rooms. ii. Complaints about working conditions; dampness, noise, fumes and other unpleasant or unsafe conditions, which can be easily corrected; overtime is unnecessary; an employee loses too much time because materials are not supplied to him in time. Collective Bargaining i. The company is attempting to undermine the trade union and the workers who belong to that union; the contract with labour has been violated; the company does not deal effectively or expeditiously with union grievances. ii. The company does not allow the supervisors to deal with, and settle, the grievances of the employees. iii. The company disregards precedents and agreements already arrived at with the workers and/or their trade union.
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In a study undertaken by S. Chandra, the following causes have been given of employee grievances: (i) Promotions; (ii) amenities; (iii) continuity of service; (iv) Compensation; (vi Disciplinary action; (vi) Fines; (vii) Increments; (ix) Leave; (ix) Medical benefits; (x) Nature of the job; (xi) Payment of wages; (xii) Acting promotion; (xiii) Recovery of dues; (xiii) Safety appliance; (xv) Superannuation; (xvi) Supersession; (xvii) Transfer; (xviii) Victimisation; and (xix) Conditions of work. Two American experts are of the view that there are three main factors which contribute to the grievances of the employeesmanagement policies and practices, trade union practices and personality traits. It should be noted here that there is no single factor which causes a grievance; many factors combine to generate a grievance; and both employer and employees have grievances-the one against the other. To sum up, employee grievances may be due to Demands for individual wage adjustments Complaints about the incentive system Complaints about the job classifications Complaints against a particular foreman Complaints concerning disciplinary measures and procedures Objections to the general methods of supervision Loose calculation and interpretation of seniority rules, and unsatisfactory interpretation of agreements Promotions Disciplinary discharge or lay-off Transfer for another department or another shift Inadequacy of safety and health services/devices Non-availability of materials in time Violation of contracts relating to collective bargaining Improper job assignment Undesirable or unsatisfactory conditions of work
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The management, too, has grievances against its employees. These concerns: Indiscipline Go slow tactics Non-fulfillment of the terms of the contracts signed between the management and the workers of their trade union Failure of the trade union to live up to its promises to the management Questionable methods adopted by trade unions to enlist members Trade union rules which conflict with the terms of contract arrived at between a trade union and the management Irresponsible charges made against the management by trade union leaders in the form of statements to the press, or leaflets, or public speeches
It should be noted that some grievances are more serious than others since they a usually more difficult to settle. Discipline cases and seniority problems (including promotions, transfer, and lay-offs) would top this test. Others would include grievances growing out of job evaluation and work assignments, overtime, vacations, incentive plans and holidays. 5.3.3 Need for a Grievance Procedure Without an analysis of their nature and pattern, the causes of employee dissatisfaction cannot be removed. The personnel administrator of an organisation should go into the details of the grievances and find out the best possible methods of settling them. He should help the top management and line managers, particularly foremen and supervisors, in the formulation and implementation of the policies, programmes and procedures which would best enable them to handle employee grievances. These policies, programmes and procedures are generally known as the grievance redressal procedure. The grievance redressal procedure is a device by which grievances are settled, generally to the satisfaction of the trade union or employees and the management. This procedure is an important part of labour relations. It is essential, whether a plant is an organised one or not. The grievance machinery enables a management to detect any defects or flaws in the working conditions or in labour relations, and undertake suitable corrective measures. If good morale and a code of discipline are to be maintained, it is essential that the grievance procedure is worked honestly and without prejudice, failing which there is likely to be an explosion, and production schedules would be shattered and the morale of the employees would be irretrievably impaired.
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The adoption of the grievance handling procedure is essential for a variety of reasons. For example: i) Most grievances seriously disturb the employees. This may affect their morale, productivity and their willingness to cooperate with the organisation. If an explosive situation develops, this can be promptly attended to if a grievance handling procedure is already in existence. ii) It is not possible that all the complaints of the employees would be settled by first-line supervisors, for these supervisors may not have had a proper training for the purpose, and they may lack authority. Moreover, there may be personality conflicts and other causes as well. iii) It serves as a check on the arbitrary actions of the management because supervisors know that employees are likely to see to it that their protest does reach the higher management. iv) It serves as an outlet for employee gripes, discontent and frustrations. It acts like a pressure valve on a steam boiler. The employees are entitled to legislative, executive and judicial protection and they get this protection from the grievance redressal procedure, which also acts as a means of upward communication. The top management becomes increasingly aware of employee problems, expectations and frustrations. It becomes sensitive to their needs, and cares for their well-being. This is why the management, while formulating plans that might affect the employees-for example, plant expansion or modification, the installation of labour-saving devices, etc.,-should take into consideration the impact that such plans might have on the employees. v) The management has complete authority to operate the business as it sees fitsubject to its legal and moral obligations and the contracts it has entered into with its workers or their representative trade union. But if the trade union or the employees do not like the way the management functions, they can submit their grievance in accordance with the procedure laid down for that purpose. A well-designed and a proper grievance procedure provide: A channel or avenue by which any aggrieved employee may present his grievance A procedure which ensures that there will be a systematic handling of every grievance A method by which an aggrieved employee can relieve his feelings of dissatisfaction with his job, working conditions, or with the management; and a means of ensuring that there is some measure of promptness in the handling of the grievance
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5.3.4 Grievance Redressal Machinery The details of the grievance procedure vary from industry to industry and from trade union to trade union because of the variations in the size of organisations, in trade union strength, in the management philosophy, in the company traditions, in industrial practices and in the cost factor. The procedure may have as few as two steps or as many as ten, depending on the size of an organisation. In some small plants, it may involve no more than three steps. In medium and large organisations there may be five or six steps, with minor variations. Although all the grievances must necessarily be processed step by step, some formal steps may, in special circumstances, be skipped with a view to settling the grievance in an expeditious manner. The handling of special grievances may involve special steps as well as, or in place of, skipping certain steps within normal grievance channels. The grievance procedure may be of an open-door type or of a stepladder type. In an open-door policy the management asserts that no employee is prevented from going to it directly with his grievance, and even meet the head of the firm in an effort to have his grievance properly attended to. This kind of open-door policy may be useful in the case of small units. In a large organisation, however, this would not be possible, for the top man may not have the time to attend to each grievance at a personal level. That is why most companies prefer the step-ladder type of procedure for an expeditious processing of the grievances of their employees. Time Limit: There are always time limits between different steps of the grievance procedure. Additional steps are taken within a grievance system when labour is dissatisfied with the solution put forward by the lower line management. Both employees and management are required to arrive at a decision in regard to a grievance within a specified time limit. 5.3.5 Grievance Procedure Steps in Unionised Organisations In a unionised organisation, the operation of the grievance procedure may contain the following steps: Step 1: The aggrieved employee verbally explains his grievance to his immediate supervisor in a conference or a discussion specifically arranged for the purpose. He may or may not be accompanied by his shop steward. The grievance can be settled if the supervisor has been properly trained for the purpose, and if he adheres strictly to a basic problem-solving method. Step 2: The second step begins when the grievance is not settled by the supervisor. In this case, it is sent to a higher level manager with a note in which are mentioned the time, place and nature of the action to which the employee objects. The higher level manager is generally the chief business manager, a superintendent or an Industrial Relations Officer who goes into the grievance and gives his decision on the matter.
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Step 3: This means that the grievance is to be submitted to the Grievance Committee since the decisions of the supervisor and of the higher level manager have not solved the problem. This committee, which is composed of some fellowemployees, the shop steward or a combination of union and management representatives, considers the record and may suggest a possible solution. It may call upon the griever to accept the employers proposed settlement. It may advise him that the trade union will not press for anything more than has already been suggested. In some cases, it may recommended that the issue be submitted for arbitration. Step 4: If the decision or suggestion of the Grievance Committee is not accepted by the grievant, he may approach the management or the Corporate Executive. This is the fourth step in the grievance handling procedure. Step 5: The final step is taken when the grievance is referred to an arbitrator who is acceptable to the employee as well as the management. They may agree beforehand that the arbitrators award will be final and binding on both the parties. 5.3.6 Basic Elements of a Grievance Procedure The basic elements of a grievance redressal procedure are: (i) The existence of a sound channel through which a grievance may pass for redressal if the previous stage or channel has been found to be inadequate, unsatisfactory or unacceptable. This stage may comprise three, four or five substages. (ii) The procedure should be simple, definite and prompt, for any complexity or vagueness or delay may lead to an aggravation of the dissatisfaction of the aggrieved employee. (iii) The steps in handling a grievance should be clearly defined. These should comprise: Receiving and defining the nature of the grievance Getting at the relevant facts, about the grievance Analysing the facts, after taking into consideration the economic, social, psychological and legal issues involved in them Taking an appropriate decision after a careful consideration of all the facts Communicating the decision to the aggrieved employee
(iv) Whatever the decision, it should be followed up in order that the reaction to the decision may be known and in order to determine whether the issue has been closed or not.
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It is relevant to note here that the management is often guilty of errors in its handling of the grievance redressal procedure. These errors are: Stopping too soon the search for facts Expressing the opinion of the management before all the pertinent facts have been uncovered and evaluated Failing to maintain proper records Resorting to an executive fiat instead of dispassionately discussing the facts of the grievance of the employee Communicating the decision to the grievant in an improper way Taking a wrong or hasty decision, which the facts or circumstances of the case do not justify
These errors can be avoided if the management acts cautiously, fairly, on the basis of all the facts that can be collected, and with a cool mind and in a cooperative and helpful manner. Personnel administrator or an Industrial Relations Officer should bear the following points in mind while evaluating the success or otherwise of the grievance redressal procedure: i. Was the case handled in such a way that the parties involved in it were able to identify, and agree upon, what was at stake? ii. Was the incident closed with a sense of satisfaction on the part of everyone immediately involved in the original complaint? iii. Was the case handled in a way which strengthened the line authority, specially at the level immediately above that at which dissatisfaction was first expressed? iv. Did the solution result in a better understanding and a better adjustment between the supervisor and his subordinate? v. As a result of this case, did this understanding spread among others in the management and in the trade union who were not directly involved in the original complaint? vi. Did the solution, organisation? contribute to the operational efficiency of the
An analysis of successful grievance handling procedures indicates that the following factors are involved in them:
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The helpful attitude and support of the management Belief on the part of all concerned in the utility of the procedure Introduction of the procedure with the concurrence of the employees representatives and their trade unions Simple, fair, easily comprehensible and expeditious grievance handling procedure containing time limit for each step Codification of the companys policies, rules and practices, and the availability of copies at different management levels involved in the handling of grievance redressal procedures Delegation of appropriate authority so that action may be taken at all the levels of the management The functioning of the personnel department in an advisory capacity at all the levels of the management A fact-oriented, instead of an employee-oriented, discussion of grievances Respect for the decision taken at each level of the management Adequate publicity given to the procedure and its achievements in the company A periodic review of the working of the procedure
Check Your Progress 1. Write the meaning of grievance.
.. .. 2. What is collective bargaining?
.. ..
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Let Us Sum UP Grievance is a negative feeling an employee may have in regard to his employment situation. Wage, supervision, working conditions and other similar factors may cause grievances in the industry. The grievance redressal procedure is a device by which grievances are settles. The grievance redressal is a multistep procedure. Sound channel to pass the grievances, simple procedures, clearly defined steps are the essential elements of grievance redressal procedure. Model Questions 1. Describe the steps in grievance redressal procedure. 2. Explain the sources of grievances in the industry. 3. Explain the basic elements of grievance redressal procedure.
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LESSON-24 COLLECTIVE BARGAINING

Contents 24.0 24.1 24.2 24.3 24.4 24.5 24.6 Aims and Objectives Meaning of Collective Bargaining Structure of Collective Bargaining Benefits of Collective Bargaining Conditions Essential for Successful Collective Bargaining How Collective Bargaining Works? Types of Negotiating Procedures
24.0
AIMS AND OBJECTIVES
Collective bargaining is one of the approaches to labour-management negotiations. This procedure is given much attention in the present context and in this lesson the following will be discussed The meaning and nature of collective bargaining Different levels at which collective bargaining works Essential conditions for successful collective bargaining The types of negotiations.
There are three approaches to labour-management negotiations, viz., unilateral; bipartite and tripartite. In the unilateral approach the employer alone decides the terms and conditions of employment for his workers assuming that he knows what is best for them. In the bipartite approach the employer negotiates with his workers. This is also known as collective bargaining. In the tripartite approach, besides the two main parties, a third party (generally the State) also participates in the negotiations. Conciliation, arbitration, adjudication, wage boards, etc., are examples of tripartitism.
24.1
MEANING OF COLLECTIVE BARGAINING
Collective bargaining may be defined as the process in which conditions of employment are determined by agreement between representatives of the union, on the one hand, and those of the employer, on the other. It is called collective because both the employer and the employees act as a group rather than individuals. It is described as bargaining because the method of reaching an agreement involves proposals and counter-proposals, offers and counter-offers.
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The bargaining process has been caricatured in a variety of ways: i. as a poker game combining deception, bluff, luck, and ability ii. as a debating society with long-winded speeches to impress ones colleagues and possibly have some effect on the opposition iii. as power politics or pure brute strength in forcing terms of settlement on the weaker party, and finally iv. as a rational process in which appeal to facts and to logic reconciles conflicting interests in the light of common interests. All of these elements are involved in some degree and combination in the bargaining process. While mature collective bargaining implies enlargement of the rational process, there can be no such thing as complete escape from the other elements. A collective bargaining process generally consists of four types of activities: distributive bargaining, integrative bargaining, attitudinal structuring and intraorganisational bargaining. The first type of activity often involved in a collective bargaining process is distributive bargaining. This is straight-out haggling over how to split up a pie. In this type of activity one partys gain is the other partys loss. When there are economic issues in dispute (e.g., wages), this type of activity predominates in the bargaining process. Second type of activity is integrative bargaining. This is negotiation of an issue on which both parties may gain, or at least neither one loses. A co-operative search for the best job evaluation system or a training programme are examples of integrative bargaining. Third type of activity involved in collective bargaining is attitudinal structuring. The process of collective bargaining helps in shaping such attitudes as trust or distrust, friendliness or hostility between the parties. This simple fact that both parties have to deal with each other almost daily and that they do not have just a sporadic relationship promotes restraint between the negotiators during the bargaining process. But if there is a backlog of bitterness, it can erupt and destroy all negotiations over a new contract. The fourth type of activity that goes on in all collective bargaining is intraorganisational bargaining, i.e., manoeuvring to achieve consensus within the labour and management organisations. There are always groups within a union which believe that their interests are not being given adequate consideration by the organisation. The skilled workers may believe that the union pays too much attention to the unskilled; women members may think that their interests are not fairly considered by the men who run the union and so on. Similarly, on the side of the employer, there may be differences which need to be resolved; for example, the sales manager may urge that a settlement be made with the union and a strike avoided at all costs so that the relationship with important customers can be protected but the finance manager may insist that any wage increase beyond a given amount would be disastrous to the companys finance.
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24.2
STRUCTURE OF COLLECTIVE BARGAINING
The term bargaining structure refers to the level-local, regional, industrial or national-at which bargaining takes place. One important determinant of bargaining structure is the nature of bargaining issues. Some issues, like wages, which have wide implications, are handled within expanded bargaining structures. Other issues, such as pensions and insurance plans, are best treated on a company-wide basis because of the need for uniformity created by actuarial and administrative considerations. Finally, there are questions of work rules, safety, washing facilities, etc., that are essentially local in nature and must be related to the conditions that prevail in a particular plant or department. From the point of view of an individual establishment plant-level bargaining is generally useful in that the settlement is tailored to the conditions of the enterprise, e.g., its capacity to pay, its market conditions and objectives, etc.
24.3
1.
BENEFITS OF COLLECTIVE BARGAINING

It provides a method for the regulation of conditions of employment by those directly concerned. The employers and workers in an industry know more about its conditions and problems than any one else. It often leads to better mutual understanding. The employers gain a greater insight into the problems and aspirations of the workers, while the latter become more aware of the economic and technical factors involved in industrial management. It provides a flexible means of adjusting wages and conditions of employment to economic and technological changes in industry. The parties can meet whenever necessary and can adapt the terms of their agreements to these changes. It creates a sort of industrial jurisprudence. Two kinds of rulesprocedural and substantive are framed. Procedural rules, as the name implies, set out the procedures that govern the behaviour of the two groupsemployer and union, and regulate the manner in which they deal with each other. They lay down, for example, how contracts may be negotiated, modified, renewed, or terminated. Substantive rules, on the other hand, regulate the relations between individuals and not groups. It is possible to distinguish three different kinds of relations between individuals which are regulated by substantive rules. There is first the economic relationship. The rules set down the terms on which existing as well as prospective workers will offer their labour to the employer. They also stipulate manning procedures, recruitment policies and the like. Next comes the political relationship. Here the rules stipulate who may exercise power over whom, and for what purpose. Last comes the social relationship. Rules provide standards of behaviour based on shared interests, sentiments, beliefs and values among various groups of employees.
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It leads to better implementation of decisions because of the direct involvement of both the parties in reaching them. Parties know that the decisions are their own arid are not imposed.
24.4 CONDITIONS BARGAINING
ESSENTIAL
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SUCCESSFUL
COLLECTIVE
For collective bargaining to be fully successful there are certain essential prerequisites. These are described below: 1. A Favourable Political Climate. If collective bargaining is to be fully successful, a favourable political climate must exist; in particular, the government and public opinion must be convinced that collective agreements are the best method of regulating certain conditions of employment. Freedom of Association. Freedom of association is essential for collective bargaining. Where such freedom is denied collective bargaining is impracticable, and where it is restricted, collective bargaining is also restricted. In the early stages of trade union organisation some employers not only refused to employ any worker who was a member but would carry their hostility to the point of violence. They might even require each worker they employed to enter into a contract with them that, as a condition of employment, he would not join a trade union. Stability of Workers Organisation. Workers may have freedom of association but, unless they make use of that right and form and maintain stable unions, collective bargaining will be ineffective. If an organisation is weak, employers can say that it does not represent the workers and will refuse to recognise it or negotiate with it. Before entering into agreements with a trade union, employers will want a reasonable assurance that it will be able to honour its undertakings, and this implies both that the union can exercise authority over its members and that its membership is sufficiently stable. If the latter fluctuates widely, at times covering only a small fraction of the workers, it cannot be considered as a reliable instrument for collective bargaining. Recognition of Trade Unions. Even assuming that freedom of association exists and that the workers have established stable organisations, collective bargaining cannot begin until employers recognise the organisations for that purpose. Employers will give such recognition only if they believe it to be in their interest or if they are legally required to do so. Once a trade union is strong enough, employers may decide that it is in their interest to recognise it and negotiate with it; otherwise, they maybe faced with strikes, and the ensuing financial losses may be far greater than the cost of any concessions on wages and conditions they may have to make in negotiations with the union. The granting of recognition may also have the positive benefit of improving industrial relations, and this may react favourably on production.
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Willingness to Give And Take. The fact of entering into negotiations implies that the differences between two parties can be adjusted by compromise and concession in the expectation that agreement can be reached. Obviously, if one or both sides merely make demands when they meet there can be no negotiation or agreement. Consequently, at the start each side normally puts forward claims which are intended to provide a basis for bargaining, and as the negotiations proceed, one side will agree to reduce its demand on one item in return for some concession by the other side. The art of bargaining is for each side to probe the other to find out its strength and weakness. On some points one side may be unwilling to depart much from its starting position, whereas on others its attitude may be more flexible; the attitude of the other side is probably similar though the points on which it is relatively rigid or flexible maybe different. In these circumstances the two sides have considerable room for manoeuvre and for give and take. Willingness to give and take during negotiations does not necessarily mean that concession made by one side will be matched by equal concessions from the other. One side may make greatly exaggerated demands which it will have to tone down considerably if agreement is to be reached. Also, depending on the relative strength of the two parties, economic conditions at the time and skill in negotiation, one side may win more concessions than the other.
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Avoidance of Unfair Labour Practices. Unfair practices in collective bargaining are sometimes resorted to both by employers and by trade unions. They are liable to hamper the development of collective bargaining and to embitter negotiations so much by the suspicion and distrust they cause as to make agreements difficult to reach. There must be the common objective of maintaining peace and discipline, improving work methods and working conditions, increasing earnings of employees as well as profits of the undertaking. That the management has the right to manage and the union has the right to organise itself and fight for justice must be fully recognised and accepted by both sides. Unless there is this basic unanimity of views collective bargaining is a mere trial of strength.
24.5
HOW COLLECTIVE BARGAINING WORKS?
Wherever collective bargaining is carried on at the level of an undertaking the actual conduct of the collective bargaining process is very simple. Before the bargaining conference begins, each side fixes the composition of its negotiating team, prepares for the negotiation and works out its strategy and tactics.
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Negotiating Team On the company side the negotiating team may consist of the personnel manager, production manager and the company lawyer. The chairman of the company is usually kept out of the negotiating team for two reasons. First, if he is present on the bargaining team, he may be forced to give an instant yes or no on an issue that deserves more careful consideration. Second, selecting someone other than the chairman of the company as spokesman places the bargaining teams on an equal footing. It is not essential for the number of representatives on the employers side and the workers sides to be equal as decisions are not taken by majority vote. On any proposal the whole of the employers side, acting in union, either accepts it or disagrees with it. Similarly, the workers representatives-if they all belong to the same union or if all the unions involved are pursuing a common line of action-act in unison. On the workers side, where there is a single trade union, the negotiating team consists of the office-bearers of that union. However, the matter becomes complicated in organisations in which there are several unions, each claiming the exclusive right to represent all the workers including the non-members. The management then has a problem in deciding whom to accept as the bargaining agent. It may follow any one of the following courses: i. ii. iii. iv. v. Select the representative union by secret ballot Select through verification of membership by some government agency Bargain with a joint committee of all the major unions Bargain with a negotiating committee in which different unions would be represented in proportion of their verified membership Bargain with a negotiating committee which consists of representatives of every department of the organisation elected by secret ballot irrespective of their union allegiance
Qualities and Attributes which Members of Negotiating Teams Must Possess i. ii. iii. iv. v. They must have the Right Attitudes. They Must Possess skill to Analyse Problems. They must have an intimate knowledge of operations, working conditions, production norms and other relevant factors. They must be Skilled In Adopting Tactics. They must Have Credibility.
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Bargaining Power Before the negotiations start, each side in collective bargaining weighs its bargaining power and also determines the maximum concessions which it will give to the other side. This depends mainly on the estimated cost of the work stoppage (strike or lockout) to the party concerned and also on its estimate of the other partys cost arising out of the stoppage. The higher the expected cost of work stoppage to the management, the greater would be the concessions which it would offer to the other party. Some factors which determine the cost of stoppage are as under: Existing State of the Market Availability of Labour Financial Capacity to Pay Technology Implications Reactions of Shareholders and Directors Unions strength Government Laws and Attitude Preparation for Negotiations
A common cause of failure of collective bargaining is not really adverse attitudes nor even the unwillingness to accept each others bonafides, but failure to do sufficient home-work which leads, first, to confused arguments and counterarguments and, second, to prolongation of the whole process. The day to start preparations for negotiations on the next contract is the day present contract goes into effect. Everything that happens under the present contract may become a factor in next negotiations. Any clause that causes confusion, works unfairly, or proves unworkable probably should be revised at the next negotiations. But unless notes are made at the time the trouble occurs, it is to be forgotten by the time the next negotiations roll around. In many companies supervisors are asked to record situations which indicate the need for revision of any contract clause as and when they occur. In fact, no one knows the operating faults in labour contract better than a supervisor who is required to work under it daily. Another continuing process in the preparation for contract negotiations is a study of the grievance records. Grievances repeatedly arising under the same contract clause give a clue to needed revisions. Next comes the study of contracts of all other comparable companies. Each and every clause of these contracts should be well appraised as to its applicability to ones own situation. One can make a list of all such clauses which one would like to use during negotiations to prove that such clauses have been agreed to elsewhere.
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Next comes the study of wage picture of companies in ones own community and industry. The wages prevalent in companies, which are pattern setters should also be studied. Figures should not be obsolete. Then comes information about the union, its leadership, history, finances and demands. The impact of these demands on the companys finances should be well studied. Finally, management should prepare a list of resource people in the company who are most likely to know or be able to ascertain quickly the impact of proposed contract changes on the companys operations and costs.
24.6
TYPES OF NEGOTIATING PROCEDURES
There can be three types of negotiating procedures: Haggling-bargaining, Boulwarism and Continuous bargaining. Haggling bargaining is the orthodox procedure of labour negotiations. This can be of two types: the piecemeal approach and the total approach. In the piecemeal approach issues are settled one by one in some order such as easiest first or from the beginning to the end of the draft demands. Each item arises as a separate issue, is argued out, disposed of and ticked away. Attention then turns to the next. In the total approach the issues are thought to be interrelated and interdependent. Therefore, no issue is settled independently. Each issue is discussed and laid aside as others are brought forward; but every issue remains open until suddenly the whole complex is ready to crystallize into a total agreement. Boulwarism, known after its originator, Lemuel Boulware, formerly a vicepresident of the General Electric Company, differs from haggling- bargaining procedure in two respects. First, in this procedure the company refuses to play the haggling game. Instead of starting low and letting itself be dragged up to the final offer it perhaps had in mind from the starta tactic that makes the union the hero and the company the villain in the eyes of many workersthe company makes its first offer a full and final one. Second, in addition to meeting with union representatives, the company conducts an extensive communication programme in which it tries to sell its offer directly to the employees and urges them to make their views known to their union official. There are several avowed objectives of this policy. By making a good offer from the beginning and explaining it directly to the workers, the company hopes to demonstrate that it does right voluntarily by its employees and not because it is forced to do so by the union. Similarly, by refusing to alter its first and final offer the company wants to prove that it is soundly based on facts from the very beginning and there is no room for any change in the offer unless some new facts are brought to the knowledge of the management. Following is a brief description of this approach as followed by the G.E.C. from 1946 to 1964 when it was given up on being declared as bad faith bargaining by the National Labour Relations Board.
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The company itself seeks through extensive year round research into all pertinent facts to determine what is right for employees. Its research includes not only a study of business conditions, competitive factors, economic trends, and the like but the gathering of its own information as to employee needs and desires through independent employee attitude surveys, comments made by employees at informative meetings, direct discussions by supervisors with employees, and statements in union publications. When bargaining begins the company, as part of its overall research listens to the presentations made by all the unions with which it deals and evaluates the unions demands with the help of the facts it has on hand including those supplied by the unions. G.E. then makes an offer which includes everything it has found to be warranted without anything held back for later trading or compromising. G.E. does not initially present its offer on an avowed take it or leave it basis. It professes a willingness to make prompt adjustments in its offer but only when new information from any source or a significant change in facts indicates that its initial offer falls short of being right.... But otherwise the company so declares that it will not change its offer at any cost and may even take strike to any duration. The third bargaining procedure has been dubbed continuous bargaining to contrast it with conventional dead line bargaining. Instead of postponing meaningful negotiations until the last few weeks or even the last few hours before a strike deadline, this approach calls for the parties to explore particularly difficult bargaining problems in joint meetings over a long period of time, sometimes throughout the life of each contract. This negotiating procedure was first recommended in 1959 by James P. Mitchell, the then Secretary of Labour in the U.S.A. In 1959 the Steel strikes in America continued for 116 days and so he warned against the antiquated practice of negotiating in the last month of an expiring contract with tension, tempers and time tables creating problems. It is nevertheless clear that any union official who participates in continuous bargaining runs the risk of being charged with becoming too friendly with management and may eventually lose his intraorganisational support and his union job. Check Your Progress 1. What is collective bargaining?
2. How collective bargaining works? Describe.
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Let Us Sum Up Collective bargaining is one of the approaches to labour management negotiation in which the conditions of the employment are determined by agreement between the employer and employee. This process can happen at different levels and collective bargaining offers numerous benefits. The favourable conditions make collective bargaining successful. Haggling bargaining, boulwarism and continuous bargaining are the types of negotiations. Model Questions 1. 2. 3. Describe the meaning and structure of collective bargaining. What are the essential conditions for successful collective bargaining? Explain the types of negotiations.
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LESSON-25 WORKER PARTICIPATION IN MANAGEMENT

Contents 25.0 25.1 25.2 25.3 Aims and Objectives Objectives of Worker Participation Factors Influencing Participation Worker Participation in Management in India
25.0
AIMS AND OBJECTIVES
Todays workers want quality management. Their key words are empowerment, involvement and participation. Workers are expected to master not merely the tasks of a single job, but also to assemble a cluster of personal skills that they can transfer from one job to another. They must continually upgrade these skills and learn to participate in decision-making teams to determine how the work is best carried out. As worker participation in management become significant, in this lesson, we discuss The meaning and objectives of worker participation in management The basic factors that influence worker participation The present status of worker participation programmes in India
Meaning It is an essential step involving redistribution of power between the management and workers in the direction of industrial democracy. It should be remembered that the worker participation in management is not the same thing as participative management. While worker participation in management refers to institutional and formal arrangements resulting into the creation of various participative forums to associate workers representatives with management, participative management refers to a managers specific style in which he interacts with his people. It is his leadership pattern. Similarly, worker participation in management is not the same thing as collective bargaining. What distinguishes worker participation from collective bargaining is the element of mutual trust and information-sharing. Collective bargaining is typically based on power dynamics, pressure tactics and to some extent on non-sharing of information whereas worker participation in
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management is based on trust, information-sharing and mutual problemsolving. However, if collective bargaining refers to productivity bargaining and productivity agreements, one may regard it as a form of worker participation in management.
25.1
OBJECTIVES OF WORKER PARTICIPATION
The scheme has economic, psychological, social, ethical and political objectives. Its economic objective is to increase workers productivity. This is possible only through fullest co-operation between labour and management, for poor labourmanagement relations do not encourage the workers to give more than the minimum necessary to retain the job and that, in many cases, is all he gives. The psychological objective of the scheme is to raise workers level of motivation. This is made possible under the scheme through the satisfaction of his noneconomic needs. Participation provides the workers with a sense of importance, pride and accomplishment, freedom and opportunity for expression, a feeling of belonging to the place of work and a sense of workmanship and creativity. Socially, the need for participation arises because modem industry is a social institution with the interests of the capital owner, the employer, the community and the workers equally vested in it. Participation forges ties of understanding between the two principal groups leading to better effort and harmony all round and its absence introduces a sullenness in behaviour which ultimately may flare up into a conflict with consequential suffering and inconvenience to the society in general. The ethical objective of participation is to develop workers free personality and to recognise human dignity. The political objective of participation is to make the workers conscious of their democratic rights on their work place and thus bring about industrial democracy as an adjunct to political democracy.
25.2
FACTORS INFLUENCING PARTICIPATION
Several research studies have shown that the intensity of participation depends on four factors: (a) Subject-matter of Participation. By and large, the workers interest in participation varies with the nature of issues involved in participation. Broadly speaking, there can be two types of issues: work-related and interest-related. Examples of work-related issues are safety, welfare, such as canteen, sports, water-supply, housing, etc. These are the simplest issues. Examples of interestrelated issues are wages and sharing of productivity gains. These are the most difficult issues. Workers show greatest interest in the second type of issues.
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(b) Level of Participation. Level of participation is another factor which determines the interests of workers in participation as such. Participation can take place at 3 levels in an enterprisefloor level, plant level and corporate level. In big enterprises there may be a fourth level also, i.e., the departmental level, in between the shop-floor and the plant. Studies have revealed that most workers desire participation at the shop- floor level and not at higher levels because they feel that with their knowledge of the work place they can contribute best at that level only. (c) Personal Characteristics. Workers interest in participation is also influenced by certain personal or group characteristics. For example, several research studies have shown that both very low and very high levels of task-relevant maturity discourage participation. Participation by extremely immature workers is like the blind leading the blind. It is pooling of ignorance. On the other hand, extremely mature workers rarely participate. They resist group think because they prefer only the expert in an area to make the decisions. Thus, the effectiveness of workers participation in management increases as one moves from low to moderate levels of maturity and then begins to plateau and finally to decline as workers become high in task-relevant maturity. This is illustrated in the following figure. (d) Extent of Participation. There are four degrees of participation. These are as follows: Communication, i.e., sharing of information with the management about all decisions taken by it. Consultation, i.e., exchanging the opinion and the views with the management before the decisions are taken. Co-determination, i.e., taking joint decisions with the management. Self-management, i.e., enjoying complete autonomy right from decisionmaking to execution.
25.3
WORKER PARTICIPATION IN MANAGEMENT IN INDIA
In India, worker participation in management is one of the Directive Principles of State Policy embodied in Article 43-A of our Constitution. This Article which was inserted in the Constitution by the Constitution (42 Amendment) provides: The State shall take steps, by suitable legislation, or in any other way, to secure the participation of workers in the management of undertakings, establishments or other organisations engaged in any industry. Several experiments have been made from time to time to give effect to this constitutional imperative. A brief description of these experiments in their chronological order is given below.
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Works Committee (1947) A works committee consists of representatives of employer and workmen engaged in the establishment. The number of representatives of the workmen on the committee shall not be less than the number of representatives of the employer. The employers representatives should be nominated by the employers and be those who are connected with the undertaking and have day-to-day contact with workmen. The workers representatives ought to be elected in the prescribed manner from among the workmen engaged in that undertaking in consultation with their trade union, if any, registered under the Trade Unions Act, 1926. The main function of the Works Committee is to promote measures for securing and preserving amity and good relations between the employers and workmen and to that end, to comment upon matters of their common interest or concern and endeavour to compose any material difference of opinion in respect of such matters. The works committees are normally concerned with problems of day-to-day working of the undertaking and are not intended to supplant or supersede the union for the purpose of collective bargaining. They are not entitled to consider real or substantial changes in the conditions of service. Their task is only to smooth away friction that might arise between the workmen and management in the day-to-day work. The following is the illustrative list of items which these Works Committees can deal with: i. Conditions of work such as ventilation, lighting, temperature and sanitation including latrines and urinals; ii. Amenities such as drinking water, canteens, dining rooms, medical and health services; iii. Safety and accident prevention, occupational diseases and protective equipment; iv. Adjustment of festival and national holidays; v. Educational and recreational activities; vi. Administration of welfare and fine funds; vii. Promotion of thrift and savings; and viii. Implementation and review of decisions arrived at in the meetings of works committees. The items excluded from the purview of the committees are: wages and allowances, bonus and profit-sharing, rationalisation and work-load, fixation of a standard labour force, programmes of planning and development, retrenchment and lay-off, victimisation for trade union activities, retirement benefits, provident fund and gratuity, quantum of leave and holidays, incentive schemes and housing and transport services.
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The National Commission on Labour suggested the following measures for the successful functioning of the works committees: i. a more responsive attitude on the part of management, ii. adequate support from unions, iii. proper appreciation of the scope and functions of the works committees, iv. whole-hearted implementation of the recommendations of the works committees, and v. proper coordination of the functions of the multiple bipartite institutions at the plant level now in vogue. Joint Management Council (1958) Joint management councils came into existence as a result of our acceptance of the socialistic pattern of society as the goal. It was decided that joint management councils should consist of an equal number of representatives of the management and employees, not exceeding 12. The employees representatives should be nominated by the recognised trade unions. Further, the councils should be setup at the plant level on a voluntary basis in selected industrial units. The criteria laid down for the selection of industrial units were: (i) the undertaking should employ at least 500 workers, (ii) it should have a well-established, strong and representative workers union affiliated to some central organisation, and (iii) the undertaking must be one with a good record of industrial relations. The essential functions of a joint management council are as under: (a) The council is to be consulted by the management on administration of standing orders, introduction of new methods of production and closure, reduction in or cessation of production. (b) The council has the right to receive information, discuss and give suggestions on general economic situation, state of the market, production and sales programmes, organisation and general running of the concern, methods of manufacture and work, annual balance sheet and profit and loss statement and long-term plans for expansion, redeployment, etc. (c) The council is to be entrusted with responsibility in respect of administration of welfare measure, supervision of safety measures, vocational training, apprenticeship schemes, schedules of working hours, breaks and holidays and rewards for suggestions.
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Issues relating to wages, bonus, etc., which are subjects for collective bargaining, are excluded from the scope of the councils. Individual grievances are also excluded from the purview of the discussion. Despite the useful purpose the joint management councils could serve, in many cases they are reported to be ineffective and their functioning unsatisfactory. The scheme is voluntary and has been adopted by only a limited number of undertakings in the public and private sectors. The reasons for their unsatisfactory working are as under: i. Workers representatives on these councils feel dissatisfied with their role as decision-makers in respect of welfare activities only. They want to be given authority to share decisions on more important subjects of collective bargaining like wages and bonus in which they say the workers are most keenly interested. To be asked to invest time and energy in discussing trivial matters, while important issues are forbidden, is infuriating. ii. Trade unions fear that the joint management councils by becoming alternative channels for articulating workers interests would weaken unions hold over the workers. iii. There is also an apprehension that the workers, not having the expertise for management, are likely to be at disadvantage vis-a-vis the management when complex matters are discussed. iv. Management is often not prepared to give as much information to the workers as they need for proper decision-making. v. Middle management and supervisors are generally hostile to workers participation because they resent their actions being questioned on the shop floor. The fact that the management sometimes sides with the workers representatives and reprimands the supervisors weakens their authority. vi. Employers who already have the system of consultation with the workers in the form of works committees and the recognised unions find the joint management councils in their present form quite superfluous. vii. There is inherent contradiction between the role of union leaders at the bargaining table where they can put all kinds of pressure on management and their role as members of a joint council when they must subordinate their sectional interests to those of an undertaking as a whole. viii. The absence of a representative union has made it difficult for the councils to work smoothly.
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Workers Directors (1970) A scheme for the appointment of workers representatives on the board of directors of nationalised banks was launched. The Nationalised Bank (Management and Miscellaneous Provisions) Scheme, 1970 was passed which required each nationalised bank to have one workers director on its Board. He was to be appointed by the Central Government from out of a panel of 3 employees to be furnished by the representative union of that bank. The qualifications laid down for the workers director were that he should have been in continuous service of one or more nationalised banks for a period of five years and should not reach superannuation age during his term of office as director which was to be 3 years. The workers directors like the flea sat atop the management but how real their participation was one could easily guess. In fact, participation between two unequals could not succeed. Management never liked to share its privilege with the workers. It believed that the worker-director on the board meant losing a good worker and getting a bad manager. As a result, the Ministry of Finance, by a notification, removed these directors from the boards of all nationalised banks. Worker Participation Scheme (1975) On October 30, 1975 the Central Government adopted through a resolution a new scheme of worker participation in management. This scheme was voluntary and covered all manufacturing and mining industries (whether in public, private or co-operative sector, including departmentally-run enterprises) employing 500 or more persons. The scheme provided for the setting up of shop councils at the shop and floor level and joint councils at the plant level. Shop Councils The main features of the shop councils were as follows: (a) Whether a joint management council already exists or not there shall be a shop council for each department or shop, or one council for more than one department or shop, considering the number of workmen employed in different departments or shops; (b) (i) Each council shall consist of an equal number of representatives of employers and workers;
(ii) The employers representatives shall be nominated by the management and must consist of persons from the unit concerned; (iii) All the representatives of workmen shall be from among the workers actually engaged in the department or the shop concerned;
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(c) The employer shall decide, in consultation with the recognised union or the various registered trade unions or with workers, as the case maybe, in the manner best suited to local conditions, the number of shop councils and departments to be attached to each council of the undertaking or the establishment; (d) The number of members of each council may be determined by the employer in consultation with the recognised union or registered unions of workers in the manner best suited to local conditions obtaining in the unit; the total number of members may not generally exceed 12; (e) All decisions of a shop council shall be on the basis of consensus and not by a process of voting, provided that either party may refer the unsettled matters to the joint council for consideration; (f) Every decision of a shop council shall be implemented by the parties concerned within a period of one month, unless otherwise stated in the decision itself and compliance report shall be submitted to the council; (g) Such decisions of a shop council which have a bearing on another shop, or the undertaking or establishment as a whole will be referred to the joint council for consideration and decision; (i) A shop council, once formed, shall function for a period of two years. Any member nominated or elected to the council in the mid-term to fill a casual vacancy shall continue to be a member of the council for the unexpired portion of the term of the council; (j) The council shall meet as frequently as is necessary and at least once in a month; (k) The chairman of the shop council shall be a nominee of the management; the worker-members of the council shall elect a vice-chairman from amongst themselves. Functions of the Shop Councils The shop councils were to attend to the following matters: 1. 2. Assistance to management in achieving monthly/yearly production targets; Improvement of production, productivity and efficiency, including elimination of wastage and optimum utilisation of machine capacity and manpower; Identification of areas of low productivity and taking of necessary corrective steps at shop level to eliminate relevant contributing factors;
3.
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4. 5. 6. 7. 8. 9.
Study of absenteeism in the shops/departments and recommending steps to reduce them; Safety measures; Assistance in maintaining general discipline in the shop/department; Physical conditions of working, such as, lighting, ventilation, noise, dust, etc., and reduction of fatigue; Welfare and health measures to be adopted for efficient running of the shop/department; and Ensuring proper flow of adequate two-way communication between the management and the workers, particularly on matters relating to production figures, production schedules and progress in achieving the targets.
Joint Council In every industrial unit employing 500 or more workers, there was to be a joint council for the whole unit. The main features of the scheme of joint council were as follows: 1. 2. 3. Only such persons who are actually engaged in the unit shall be members of the joint council; The council shall function for a period of two years; The chief executive of the unit shall be the chairman of the joint council. There shall be a vice-chairman who will be nominated by worker-members of the council; The joint council shall appoint one of the members of the council as its Secretary. Necessary facilities for the efficient discharge of functions by the Secretary shall be provided within the premises of the undertaking/ establishment; The term of the council, once formed, shall be for a period of two years; if, however, a member is nominated in the mid-term of the council to fill a casual vacancy, the member nominated in such vacancy shall continue in office for the remaining period of the term of the council; The joint council shall meet at least once in a quarter; Every decision of the joint council shall be on the basis of consensus and not by a process of voting and shall be binding on employers and workmen and shall be implemented within one month unless otherwise stated in the decision itself.
4.
5.
6. 7.
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Functions of Joint Council The joint council was to deal with matters relating to: 1. 2. 3. 4. optimum production efficiency and fixation of productivity norms of man and machine for the unit as a whole; functions of a shop council which have a bearing on another shop or the unit as a whole; matters emanating from shop councils which remain unresolved; work planning and achieving production targets, more specifically, tasks assigned to a shop council at the shop/department level but relevant to the unit as a whole; the development of skill of workmen and adequate facilities for training; the preparation of schedules of working hours and of holidays; awarding of rewards for valuable and creative suggestions received from workers; optimum use of raw materials and quality of finished products, and general health, welfare and safety measures for the unit or the plant. The works committees, as prescribed under the Industrial Disputes Act, were to continue to function in addition to this scheme.
5. 6. 7. 8. 9.
New Scheme on Worker Participation (1983) In December 1983 the Government of India introduced a new comprehensive scheme of worker participation in management. The broad features of this scheme are as follows: 1. The operation of this scheme has been restricted to central public sector undertakings only. Departmentally-run undertakings have been excluded from the new scheme. This is because Joint Consultative Machinery is expected to function in their case. The Central Government has, however, addressed various State Governments also to introduce the scheme in their State undertakings and to encourage the private sector to implement it. The scheme is to operate at the shop floor and plant levels. It provides for equal representation to both the parties at both levels. There is provision for Board-level participation also. Different categories of workers such as skilled, unskilled, technical and non-technical, supervisory (foreman, chargeman, etc.) and non-supervisory are to be represented at both shop floor and plant levels. Managerial personnel are to be excluded.
2.
3.
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4.
The exact number of representatives is to depend on the size of the work force and is to be arrived at by the management in consultation with trade union leaders. The mode of representation of workers is to be determined through consensus. Representation is to be given to women workers where they constitute 10% or more of the total work force. The scheme has universal applicability irrespective of the number of workers employed. (Works committees envisaged 100 workers, JMCS 500,1975 scheme 500 and 1977 Scheme 100). The functions of participative forums at various levels have been made more elaborate. The forum at the shop floor level is to look into a wide range of functions such as production facilities, storage facilities, material economy, wastage control, hazard and safety problems, cleanliness, welfare measures and so on. The forum at the plant level is to look into the following functions:
5.
6.
7.
Operational Areas Evolution of productivity schemes taking into account the local conditions; planning, implementation and review of monthly targets and schedules; materials supply and its shortfall; storage and inventories; house keeping; improvements in productivity, encouragement to and consideration of suggestions; quality and technological improvements; machine utilisation and development of new products; matters not resolved at the shop level or concerning more than one shop; review of the working of the shop level bodies. Economic and Financial Areas Profit and Loss statement, balance sheets, review of operating expenses, financial results, plant performance in financial terms etc. Personnel Matters Absenteeism, special problems of women workers, initiation and supervision of workers training programmes, administration of social security schemes, etc. Welfare Areas Implementation of welfare schemes, medical benefits and transport facilities, safety measures, sports and games, housing, township administration, canteen, control of gambling, drinking, indebtedness etc.
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Environmental Areas Extension activities and community development projects and pollution control. Both the shop and the plant level forums will attempt to arrive at a decision by consensus; but where no consensus emerges, they will refer the matter to the next higher forum. At the Board level the workers representatives will participate in all the functions of the Board. One of the special functions assigned to the Board would be to review the work of the shop and plant level forums. Worker-Shareholder One more method of involvement of workers in industries is to make them shareholders in the company. The workers are allowed to pay the purchase money in convenient installments and are even granted loan for this purpose. It is, however, doubtful whether this type of scheme creates in the workers any sense of belonging or co-partnership. Experience of the working of the Payment of Bonus Act has shown that the payment of bonus to the workers has neither reduced industrial unrest nor has it created in the workers any sense of belonging. The trade unions in India do not seem to favour this scheme. Quality Circles A quality circle is a small group of 5 to 10 workers who volunteer to meet regularly to solve problems affecting their work, e.g., how to improve quality, reduce production costs, raise productivity, improve safety, and so on. Typically, the group itself identifies a problem, analyses it, develops solution and presents the same to management. Management has the right to accept or reject the suggestion. The quality circle usually meets during company time once a week. The circle is given recognition for those of its suggestions which have been successfully implemented. Check Your Progress 1. What is workers participation?
2. What is Shop council?
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Let Us Sum Up Worker participation is redistribution of power between the management and workers in the direction of industrial democracy. Worker participation programmes have economic, psychological, social and ethical objectives. The subject matter of participation, level of participation, personal characteristics and the extent of participation are the factors that influence worker participation. Various steps have been taken in India such as works committee, to implement worker participation programme. Model Questions 1. 2. What are the objectives of worker participation? Describe. Worker participation in management is one of the directive principles of state policy in India Discuss.
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B.B.M.

Second Year Core Paper No.VII

HUMAN RESOURCE MANAGEMENT

BHARATHIAR UNIVERSITY SCHOOL OF DISTANCE EDUCATION COIMBATORE 641 046

B.B.M.-Human Resource Management

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LESSON-1 PERSONNEL MANAGEMENT

Objectives of Personnel Management

1.0 AIMS AND OBJECTIVES

1.1 MEANING OF PERSONNEL MANAGEMENT

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1.2 NATURE OF PERSONNEL MANAGEMENT

B.B.M.-Human Resource Management

Check Your Progress 1. Write the meaning of personnel management.

SCOPE OF PERSONNEL MANAGEMENT

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1.4 OBJECTIVES OF PERSONNEL MANAGEMENT

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LESSON-2 FUNCTIONS OF PERSONNEL DEPARTMENT

2.0 AIMS AND OBJECTIVES

2.1 CLASSIFICATION OF FUNCTIONS

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2.2 MANAGERIAL FUNCTIONS

2.3 OPERATIVE FUNCTIONS

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LESSON-3 THE ROLE OF PERSONNEL MANAGER

3.0 AIMS AND OBJECTIVES

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3.1 HUMAN RESOURCE PLANNING

3.2 FORMULATION OF PROGRAMMES AND PROCEDURE

3.3 EMPLOYEE HEALTH AND SAFETY PROGRAMMES

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3.4 TRAINING AND DEVELOPMENT OF PERSONNEL

3.5 WAGE AND SALARY ADMINISTRATION

3.6 LABOUR MANAGEMENT RELATIONS

3.7 SERVICE AND BENEFITS

3.8 PERSONNEL RESEARCH

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3.9 AUDIT AND REVIEW WORK

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LESSON-4 ORGANISATION OF PERSONNEL DEPARTMENT

4.0 AIMS AND OBJECTIVES

CONCEPTS OF ORGANISATION STRUCTURE

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4.2 MERITS OF FORMAL ORGANISATION STRUCTURE

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4.3 ORGANISATIONAL STRUCTURE OF THE PERSONNEL DEPARTMENT

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LESSON-5 PERSONNEL POLICIES, PROCEDURES AND PROGRAMMES

5.0 AIMS AND OBJECTIVES