Sikkim Manipal University - MBA - MU0012 – – Employee Relations

Management

Semester: 3 - Assignment Set: 2

Q.1) Explain the approaches for management of overseas branches.

Ans:-

This is the matter of the overseas department to manage foreign branches of the company. Today
many large companies have overseas branches and subsidiaries across countries which help tackle new
markets and find new opportunities for business development. The function of Foreign branches
management commits the overseas department to fulfill the following sub-functions:

• Controlling subsidiaries' activities

• Providing assistance and help for their development and expandability
• Managing finance flows and monitoring subsidiaries revenues, depending on the level of
provided authorities

Software for the overseas department workflow management

VIP Task Manager is a Windows operated task management system that allows to specify and control
the tasks, procedural steps, operations and activities of the overseas department.VIP Task Manager
provides solutions for creating customized workflow types to meet specific demands of the
departmental workflow. Process-oriented and task-oriented approaches realized in VIP Task Manager
allow the staff members to be focused on particular jobs, documents and shipment data. In general,
the workflow management software brings the following advantages for the overseas department
management:

• Customizable workflow types to create management solutions and meet business demands
• Permissions to grant/restrict employee access to the department database
• Common work environment among the subsidiaries and the department
• Storing tasks and documents in secured and centralized database file
• Improved communications between the employees
• Reports on task statuses and performance analysis

Planning tasks to maintain overseas branches and representative offices

Overseas department coordinates and streamlines activities of the foreign branches and representative
offices of the company, providing a centralized maintenance and advice. The function of foreign
branches management ensures consistency in the company's international activities, management of
financial flows and maintenance of overseas corporate policy and its execution. The foreign branches
coordinator is responsible for controlling and assessing work of overseas subsidiaries and offices. His
main tasks are to conduct the review activities of each foreign branch. An example of these tasks is
shown below:
•
• monitor tasks and assess productivity of each employee in the foreign division
• oversee local projects and check schedules
• evaluate compliance with corporate policies and procedures
• review financial statement and assess the adequacy of the financial condition
• identify opportunities for workflow improvement in the foreign branches
This example of core tasks of the foreign branches coordinator can be effectively planned and
performed by using VIP Task Manager. The branches coordinator can use Calendar view to create
and schedule to-do lists that help plan activities of the overseas divisions. For example, in the task
group 'Overseas projects' he can create the task checklist that allows step by step planning and
monitoring of the projects of overseas branches. Task reminder will help keep the task planning on
schedule. Calendar view displays the tasks in daily, weekly and monthly modes, making it easier to
plan short-term (one week or one month) and long-term (quarter or even year) projects.
Sikkim Manipal University - MBA - MU0012 – – Employee Relations
Management

Semester: 3 - Assignment Set: 2

Tracking foreign projects
The head office of the company needs to be sure that overseas subsidiaries do their jobs in compliance
with corporate policy and established plans. The first and primary task of the foreign branches
coordinator is to monitor and track projects and tasks of the employees in the foreign branches. Task
tracking and project monitoring is much easier by using VIP Task Manager. The software allows to
track several overseas projects at one time, as it stores all tasks of the foreign divisions in common
database file which is accessible by the employees in any subsidiary. The branches coordinator can
connect to the overseas branches database through Internet connection and track all ongoing activities
in real-time mode. The Filter panel makes task and project tracking easier. For example, to track
projects of European division of the company, the branches coordinator can apply the filter by the
folder 'European division' in Task Tree view. Then, all European projects will be displayed in Task Tree
view. If the foreign branches coordinator needs to see only ongoing tasks in the projects, he can apply
the filter by status 'In Progress'. The Filter panel also allows to filter tasks by such parameters as
Assignment, Priority, Time Left, Dated Completed, and other. For better usability the branches
coordinator can save filter settings to profiles, for example 'All ongoing foreign projects' profile, and
raise it any time.
Measuring performance and getting reports
Performance measurement and task reporting are the ways to determine whether an overseas project
has been successfully completed. To measure performance, the foreign branches coordinator can use
special indicators (so called KPI - key performance indicators) and then build a summary report that
will include the used KPI. In VIP Task Manager such functionality is available. The foreign branches
coordinator can use Custom Field feature to build and apply key performance indicators per task and
project. The software allows to sum up the indicators and define min/max/average values.
For example, to define average costs per task in the project of European division, the foreign branches
coordinator can create the custom field 'Costs' in which the division's employees will enter real costs
per task as far as the project runs. At the end of the project the foreign branches coordinator can
calculate the average project costs. The average value will be displayed on the level of the task group
'European division' (as shown on screen shot). To include this KPI in a short status report, the foreign
branches coordinator can use Report Builder in VIP Task Manager. This reporting tool allows to create
HTML, text, visual and Excel format reports.

Q.2) what is Employee participation? Give examples.

Ans:-
Employee participation is the process whereby employees are involved in decision making processes,
rather than simply acting on orders. Employee participation is part of a process of empowerment in the
workplace.

Empowerment involves decentralising power within the organisation to individual decision makers
further down the line. Team working is a key part of the empowerment process. Team members are
encouraged to make decisions for themselves in line with guidelines and frameworks established in self
managing teams.

Employee participation is in part a response to the quality movement within organisations. Individual
employees are encouraged to take responsibility for quality in terms of carrying out activities, which
meet the requirements of their customers. The internal customer is someone within the organisation
that receives the 'product of service' provided by their 'supplier' within the organisation. External
customers are buyers and users outside of the organisation. Employee participation is also part of the
move towards human resource development in modern organisations. Employees are trusted to make
decisions for themselves and the organisation. This is a key motivational tool.

Employee participation is also referred to as employee involvement (EI)

Sikkim Manipal University - MBA - MU0012 – – Employee Relations
Management

Semester: 3 - Assignment Set: 2

Examples of employee participation include:

i. Project teams or quality circles in which employees work on projects or tasks with considerable
responsibility being delegated to the team.

ii. Suggestion schemes - where employees are given channels whereby they can suggest new ideas to
managers within the organisation. Often they will receive rewards for making appropriate suggestions.

iii. Consultation exercises and meetings whereby employees are encouraged to share ideas.

iv. Delegation of responsibility within the organisation. In modern organisations ground level employees
have to be given considerable responsibility because they are dealing with customers on a day-to-day
basis often in novel situations. Such employees need to be trusted to make decisions for themselves.

v. Multi-channel decision making processes. In such situations decisions are not only made in a
downward direction, they also result from communications upwards, sideways, and in many other
directions within the organisation.

Q.3 Write note an organizational justice

Ans:-

Organizational justice
The term organizational justice was coined by Greenberg (1987) and is defined as an individual’s
perception of and reactions to fairness in an organization. Justice or fairness refers to the idea that an
action or decision is morally right, which may be defined according to ethics, religion, fairness, equity,
or law. People are naturally attentive to the justice of events and situations in their everyday lives,
across a variety of contexts (Tabibnia, Satpute, & Lieberman, 2008). Individuals react to actions and
decisions made by organizations every day. An individual’s perceptions of these decisions as fair or
unfair can influence the individual’s subsequent attitudes and behaviors. Fairness is often of central
interest to organizations because the implications of perceptions of injustice can impact job attitudes
and behaviors at work. Justice in organizations can include issues related to perceptions of fair pay,
equal opportunities for promotion, and personnel selection procedures.
Overview
Organizational justice is conceptualized as a multidimensional construct. The four proposed components
are distributive, procedural, interpersonal, and informational justice. Research also suggests the
importance of affect and emotion in the appraisal of the fairness of a situation as well as one’s
behavioral and attitudinal reactions to the situation (e.g., Barsky, Kaplan, & Beal, 2011). A myriad of
literature in the industrial/organizational psychology field has examined organizational justice as well as
the associated outcomes. Perceptions of justice influence many key organizational outcomes such as
motivation (Latham & Pinder, 2005) and job satisfaction (Al-Zu’bi, 2010).
Corporate Social Responsibility
A concept related to organizational justice is corporate social responsibility (CSR). Organizational
justice generally refers to perceptions of fairness in treatment of individuals internal to that
organization while corporate social responsibility focuses on the fairness of treatment of entities
external to the organization. Corporate social responsibility refers to a mechanism by which businesses
monitor and regulate their performance in line with moral and societal standards such that it has
positive influences on all of its stakeholders (Carroll, 1999). Thus, CSR involves organizations going
above and beyond what is moral or ethical and behaving in ways that benefit members of society in
general. It has been proposed that an employee’s perceptions of their organization’s level of corporate
social responsibility can impact that individual’s own attitudes and perceptions of justice even if they
are not the victim of unfair acts (Rupp et al., 2006).
Sikkim Manipal University - MBA - MU0012 – – Employee Relations
Management

Semester: 3 - Assignment Set: 2

Roots in Equity Theory
The idea of organizational justice stems from Equity Theory (Adams, 1963, 1965), which posits that
judgments of equity and inequity are derived from comparisons between one’s self and others based on
inputs and outcomes. Inputs refer to what a person perceives to contribute (e.g., knowledge and effort)
while outcomes are what an individual perceives to get out of an exchange relationship (e.g., pay and
recognition). Comparison points against which these inputs and outcomes are judged may be internal
(one’s self at an earlier time) or external (other individuals).

Types of Organizational Justice

Three main proposed components of organizational justice are distributive, procedural, and
interactional justice (which includes informational and interpersonal justice).

Distributive justice is conceptualized as the fairness associated with decision outcomes and
distribution of resources. The outcomes or resources distributed may be tangible (e.g., pay) or
intangible (e.g., praise). Perceptions of distributive justice can be fostered when outcomes are
perceived to be equally applied (Adams, 1965).

Procedural justice is defined as the fairness of the processes that lead to outcomes. When individuals
feel that they have a voice in the process or that the process involves characteristics such as
consistency, accuracy, ethicality, and lack of bias then procedural justice is enhanced (Leventhal,
1980).

Interactional justice refers to the treatment that an individual receives as decisions are made and
can be promoted by providing explanations for decisions and delivering the news with sensitivity and
respect (Bies & Moag, 1986). A construct validation study by Colquitt (2001) suggests that interactional
justice should be broken into two components: interpersonal and informational justice. Interpersonal
justice refers to perceptions of respect and propriety in one’s treatment while informational justice
related to the adequacy of the explanations given in terms of their timeliness, specificity, and
truthfulness.

Proposed Models of Organizational Justice

Three different models have been proposed to explain the structure of organizational justice
perceptions including a two factor model, a three factor model, and a four factor model. Many
researchers have studied organizational justice in terms of the three factor model (e.g., DeConinck,
2010; Liljegren & Ekberg, 2010) while others have used a two factor model in which interpersonal
justice is subsumed under procedural justice while yet some other studies suggest a four factor model
best fits the data (Colquitt, 2001). Greenberg (1990) proposed a two-factor model and Sweeney and
McFarlin (1993) found support for a two-factor model composed of distributive and procedural justice.
Through the use of structural equation modeling, Sweeney and McFarlin found that distributive justice
was related to outcomes that are person-level (e.g., pay satisfaction) while procedural justice was
related to organization-level outcomes (e.g., organizational commitment).
The accuracy of the two-factor model was challenged by studies that suggested a third factor
(interactional justice) may be involved. Bies and Moag (1986) argue that interactional justice is distinct
from procedural justice because it represents the social exchange component of the interaction and the
quality of treatment whereas procedural justice represents the processes that were used to arrive at
the decision outcomes. Generally researchers are in agreement regarding the distinction between
procedural and distributive justice but there is more controversy over the distinction between
interactional and procedural justice (Cohen-Charash & Spector, 2001). Colquitt (2001) demonstrated
that a four-factor model (including procedural, distributive, interpersonal, and informational justice) fit
the data significantly better than a two or three factor model. Colquitt’s construct validation study also
showed that each of the four components have predictive validity for different key organizational
outcomes (e.g., commitment and rule compliance).
Sikkim Manipal University - MBA - MU0012 – – Employee Relations
Management

Semester: 3 - Assignment Set: 2

The Role of Affect in Organizational Justice Perceptions
One of the key constructs that has been shown to play a role in the formation of organizational justice
perceptions is affect. The precise role of affect in organizational justice perceptions depends on the
form of affectivity being examined (emotions, mood, disposition) as well as the context and type of
justice being measured. Affect may serve as an antecedent, outcome, or even a mediator of
organizational justice perceptions.
A recent article (Barksy, Kaplan, & Beal, 2011) provides a model that explains the role of affect and
emotions at various stages of the appraisal and reaction stages of justice perception formation and
illustrates that injustice is generally an affect laden and subjective experience. Affect and emotions can
be part of the reactions to perceived injustice, as studies have shown that the more injustice that is
perceived, the higher degrees of negative emotions are experienced. In addition, affect can act as a
mediator between justice perceptions and actions taken to redress the perceived injustice. Affect plays
this role in Equity Theory such that negative affective reactions act as a mediator between perceptions
and actions, as emotional reactions to justice motivate individuals to take action to restore equity.
A recent meta-analysis by Barsky and Kaplan (2007) condenses many studies on this topic and
explains that state and trait level affect can influence one’s perceptions of justice. The findings of
Barsky and Kaplan show that both state and trait level negative affect can act as antecedents to justice
perceptions. State and trait level negative affect are negatively associated with interactional,
procedural, and distributive justice perceptions. Conversely, positive state and trait affectivity was
linked to higher ratings of interactional, procedural and distributive justice.
Based on the research regarding the central role of affect in justice perceptions, Lang, Bliese, Lang, and
Adler (2011) extended this research and studied the idea that sustained clinical levels of negative affect
(depression) could be a precursor to perceptions of injustice in organizations. Lang et al. (2011) tested
longitudinal cross-lagged effects between organizational justice perceptions and employee depressive
symptoms and found that depressive symptoms do lead to subsequent organizational justice
perceptions. Thus, affect can serve as an antecedent to justice perceptions in this instance.

Antecedents of Organizational Justice Perceptions

Employee Participation
One antecedent to perceptions of organizational justice is the extent to which employees feel that they
are involved in decision-making or other organizational procedures. Higher levels of justice are
perceived when employees feel that they have input in processes than when employees do not perceive
that they have the opportunity to participate (Greenberg & Folger, 1983; Bies & Shapiro, 1988). The
opportunity or ability to participate in decision making improves an individual’s perceptions of
procedural justice, even when the decision is unfavorable to the individual (Bies & Shapiro, 1988). In
addition, other studies have shown that employee input is related to both procedural and interpersonal
justice perceptions (Kernan & Hanges, 2002).
Communication
A second antecedent to organizational justice perceptions is organizational communication with
employees. Communication has been shown to be related to interpersonal and informational justice
perceptions (Kernan & Hanges, 2002). The quality of communication by an organization or manager
can improve justice perceptions by improving employee perceptions of manager trustworthiness and
also by reducing feelings of uncertainty (Kernan & Hanges, 2002). It is important that the information
provided be accurate, timely, and helpful in order for the impact on justice perceptions to be positive
(Schweiger & DeNisi, 1991).
Justice Climate
Perceptions of organizational justice can be influenced by others, such as co-workers and team
members. Recent research suggests that team level perceptions of justice form what is called a ‘justice
climate’ which can impact individuals’ own views of justice (Li & Cropanzano, 2009). Employees
working within a team may share their perceptions with one another which can lead to a shared
interpretation of the fairness of events (Roberson & Colquitt, 2005). Research findings show that
individuals can “learn” justice evaluations from team members and these can lead to homogeneity of
justice perceptions within teams, creating a strong justice climate (Roberson & Colquitt, 2005). Thus,
Sikkim Manipal University - MBA - MU0012 – – Employee Relations
Management

Semester: 3 - Assignment Set: 2

group-level perceptions of justice can be conceptualized as an antecedent to individuals’ justice
perceptions.
Outcomes of Organizational Justice Perceptions
Employees’ perceptions of injustice within the organization can result in a myriad of outcomes both
positive and negative. Outcomes are affected by perceptions of organizational justice as a whole or by
different factors of organizational justice. Commonly cited outcomes affected by organizational justice
include trust, performance, job satisfaction, organizational commitment, organizational citizenship
behaviors (OCBs), counterproductive work behaviors (CWBs), absenteeism, turnover, and emotional
exhaustion.
Trust
The relationship between trust and organizational justice perceptions is based on reciprocity. Trust in
the organization is built from the employee’s belief that since current organizational decisions are fair,
future organizational decisions will be fair. The continuance of employee trust in the organization and
the organization continuing to meet the employee’s expectations of fairness creates the reciprocal
relationship between trust and organizational justice (DeConick, 2010). Research has found that
procedural justice is the strongest predictor of organizational trust (Hubbell & Chory-Assad, 2005;
Cohen-Charash & Spector, 2001). A positive relationship between an employee and supervisor can lead
to trust in the organization (Karriker & Williams, 2009).
Performance
The impact of organizational justice perceptions on performance is believed to stem from Equity
Theory. This would suggest that when people perceive injustice they seek to restore justice. One way
that employees restore justice is by altering their level of job performance. Procedural justice affects
performance as a result of its impact on employee attitudes. Distributive justice affects performance
when efficiency and productivity are involved (Cohen-Charash & Spector, 2001). Improving justice
perceptions improves productivity and performance (Karriker & Williams, 2009).
Job Satisfaction & Organizational Commitment
Job satisfaction was found to be positively associated with overall perceptions of organizational justice
such that greater perceived injustice results in lower levels of job satisfaction and greater perceptions
of justice result in higher levels of job satisfaction (Al-Zu’bi, 2010). Additionally, organizational
commitment is related to perceptions of procedural justice such that greater perceived injustice results
in diminished commitment while greater perceived justice results in increases commitment to the
organization (DeConick, 2010; Cohen-Charash & Spector, 2001).
Organizational Citizenship Behavior
Organizational citizenship behaviors are actions that employees take to support the organization that
go above and beyond the scope of their job description. OCBs are related to both procedural justice
(DeConick, 2010; Cohen-Charash & Spector, 2001; Karriker & Williams, 2009) and distributive justice
perceptions (Cohen-Charash & Spector, 2001; Karriker & Williams, 2009). As organizational actions and
decisions are perceived as more just, employees are more likely to engage in OCBs. Karriker and
Williams (2009) established that OCBs are directed toward either the supervisor or the organization
depending on whether the perception of just stems from the supervisor or the organization.
Additionally, a relationship was found between interpersonal justice and OCBs; however, this
relationship was not mediated by the source of justice perceptions (Karriker & Williams, 2009).
Counterproductive Work Behaviors
Counterproductive work behaviors are “intentional behaviors on the part of an organizational member
viewed by the organization as contrary to their legitimate interests” (Zohghbi-Manrique de Lara &
Verano-Tacoronte, 2007, p.716). Increased judgments of procedural injustice can lead to employee
unwillingness to comply with an organization’s rules (Zohghbi-Manrique de Lara & Verano-Tacoronte,
2007; Cohen-Charash & Spector, 2001). However, the relationship between perceived procedural
injustice and CWBs is mediated by perceived normative conflict, which is the extent to which employees
perceive conflict between the norms of their workgroup and the rules of the organization. If the
perceptions of procedural injustice result in perceived normative conflict, CWBs will occur (Zohghbi-
Manrique de Lara & Verano-Tacoronte, 2007).
Absenteeism & Withdrawal
Sikkim Manipal University - MBA - MU0012 – – Employee Relations
Management

Semester: 3 - Assignment Set: 2

Absenteeism, or non-attendance, is another outcome of perceived injustice related to Equity Theory
(Johns, 2001). Failure to receive a promotion is an example of a situation in which feelings of injustice
may result in an employee being absent from work without reason. Johns (2001) found that when
people saw both their commitment to the organization and the organization’s commitment to them as
high absenteeism is diminished. Additionally, withdrawal, or leaving the organization, is a more
extreme outcome stemming from the same Equity Theory principles. Distributive justice perceptions
are most strongly related to withdrawal (Cohen-Charash & Spector, 2001).
Emotional Exhaustion
Emotional exhaustion, which related to employee health and burnout, is related to overall
organizational justice perceptions. As perceptions of justice increase employee health increases and
burnout decreases (Liljegren & Ekberg, 2009). Distributive, procedural, and interactional justice
perceptions are able to capture state specific levels of emotional exhaustion which fade over time;
however, overall organizational justice perceptions give the most stable picture of the relationship
between justice perceptions and emotional exhaustion over time (Liljegren & Ekberg, 2009).

Q4) Describe the main actors involved in industrial relations.

Ans:-
INDUSTRIAL RELATIONS

Industrial relations is used to denote the collective relationships between management and the
workers. Traditionally , the term industrial relations is used to cover such aspects of industrial life as
trade unionism, collective bargaining, workers’ participation in management, discipline and grievance
handling, industrial disputes and interpretation of labor laws and rules and code of conduct.

In the words of Lester, "Industrial relations involve attempts at arriving at solutions between the
conflicting objectives and values; between the profit motive and social gain; between discipline and
freedom, between authority and industrial democracy; between bargaining and co-operation; and
between conflicting interests of the individual, the group and the community”.

The National Commission on Labor (NCL) also emphasize on the same concept. According to NCL,
industrial relations affect not merely the interests of the two participants- labor and management, but
also the economic and social goals to which the State addresses itself. To regulate these relations in
socially desirable channels is a function, which the State is in the best position to perform.

In fact, industrial relation encompasses all such factors that influence behavior of people at work. A few
such important factors are below:

Institution: It includes government, employers, trade unions, union federations or associations,

government bodies, labor courts, tribunals and other organizations which have direct or indirect impact
on the industrial relations systems.

Characters: It aims to study the role of workers unions and employers’ federations officials, shop
stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor
court, tribunal etc.

Methods: Methods focus on collective bargaining, workers’ participation in the industrial relations
schemes, discipline procedure, grievance redressal machinery, dispute settlements machinery working
of closed shops, union reorganization, organizations of protests through methods like revisions of
existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc.

Contents: It includes matter pertaining to employment conditions like pay, hours of works, leave with
Sikkim Manipal University - MBA - MU0012 – – Employee Relations
Management

Semester: 3 - Assignment Set: 2

wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc., laws relating to such
activities, regulations governing labor welfare, social security, industrial relations, issues concerning
with workers’ participation in management, collective bargaining, etc.

Definition and Concept of IR

Industrial relations has become one of the most delicate and complex problems of modern industrial
society. Industrial progress is impossible without cooperation of labors and harmonious relationships.
Therefore, it is in the interest of all to create and maintain good relations between employees (labor)
and employers (management).

The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry” refers to
“any productive activity in which an individual (or a group of individuals) is (are) engaged”. By
“relations” we mean “the relationships that exist within the industry between the employer and his
workmen.”

The term industrial relations explain the relationship between employees and management which stem
directly or indirectly from union-employer relationship.

Industrial relations are the relationships between employees and employers within the organizational
settings. The field of industrial relations looks at the relationship between management and workers,
particularly groups of workers represented by a union. Industrial relations are basically the interactions
between employers, employees and the government, and the institutions and associations through
which such interactions are mediated.

The term industrial relations have a broad as well as a narrow outlook. Originally, industrial relations
were broadly defined to include the relationships and interactions between employers and employees.
From this perspective, industrial relations cover all aspects of the employment relationship, including
human resource management, employee relations, and union-management (or labor) relations. Now its
meaning has become more specific and restricted. Accordingly, industrial relations pertains to the study
and practice of collective bargaining, trade unionism, and labor-management relations, while human
resource management is a separate, largely distinct field that deals with nonunion employment
relationships and the personnel practices and policies of employers.

The relationships which arise at and out of the workplace generally include the relationships between
individual workers, the relationships between workers and their employer, the relationships between
employers, the relationships employers and workers have with the organizations formed to promote
their respective interests, and the relations between those organizations, at all levels. Industrial
relations also includes the processes through which these relationships are expressed (such as,
collective bargaining, workers’ participation in decision-making, and grievance and dispute settlement),
and the management of conflict between employers, workers and trade unions, when it arises.

For better understanding of industrial relations, various terms need to be defined here:

Industry:

Industrial Disputes Act 1947 defines an industry as any systematic activity carried on by co-operation
between an employer and his workmen for the production, supply or distribution of goods or services
with a view to satisfy human wants or wishes whether or not any capital has been invested for the
purpose of carrying on such activity; or such activity is carried on with a motive to make any gain or
Sikkim Manipal University - MBA - MU0012 – – Employee Relations
Management

Semester: 3 - Assignment Set: 2

profit. Thus, an industry is a whole gamut of activities that are carried on by an employer with the help
of his employees and labors for production and distribution of goods to earn profits.

Employer:

An employer can be defined from different perspectives as:-

• A person or business that pays a wage or fixed payment to other person(s) in exchange for the
services of such persons.
• A person who directly engages a worker/employee in employment.
• Any person who employs, whether directly or through another person or agency, one or more
employees in any scheduled employment in respect of which minimum rates of wages have
been fixed.
As per Industrial Disputes Act 1947 an employer means:-
• in relation to an industry carried on by or under the authority of any department of [the Central
Government or a State Government], the authority prescribed in this behalf, or where no
authority is prescribed, the head of the department;
• in relation to an industry carried on by or on behalf of a local authority, the chief executive
officer of that authority;

Employee: -
• Employee is a person who is hired by another person or business for a wage or fixed payment in
exchange for personal services and who does not provide the services as part of an independent
business.
• An employee is any individual employed by an employer.
• A person who works for a public or private employer and receives remuneration in wages or
salary by his employer while working on a commission basis, piece-rates or time rate.
• Employee, as per Employee State Insurance Act 1948, is any person employed for wages in or
in connection with work of a factory or establishment to which the act applies.
In order to qualify to be an employee, under ESI Act, a person should belong to any of the categories:
o Those who are directly employed for wages by the principal employer within the premises or
outside in connection with work of the factory or establishment.
o those employed for wages by or through an immediate employer in the premises of the factory
or establishment in connection with the work thereof
o Those employed for wages by or through an immediate employer in connection with the factory
or establishment outside the premises of such factory or establishment under the supervision
and control of the principal employer or his agent.
o Employees whose services are temporarily lent or let on hire to the principal employer by an
immediate employer under a contract of service (employees of security contractors, labor
contractors, house keeping contractors etc. come under this category).

Employment: The state of being employed or having a job.

Labor market: The market in which workers compete for jobs and employers compete for workers. It
acts as the external source from which organizations attract employees. These markets occur because
different conditions characterize different geographical areas, industries, occupations, and professions
at any given time.

Actors in the IR system

Three main parties are directly involved in industrial relations:

Sikkim Manipal University - MBA - MU0012 – – Employee Relations
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Semester: 3 - Assignment Set: 2

Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire
them. Management can also affect workers’ interests by exercising their right to relocate, close or
merge the factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions of their employment. They exchange
views with management and voice their grievances. They also want to share decision making powers of
management. Workers generally unite to form unions against the management and get support from
these unions.

Government: The central and state government influences and regulates industrial relations through
laws, rules, agreements, awards of court ad the like. It also includes third parties and labor and tribunal
courts.

SCOPE

The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it
means that the employer, employee relationship confines itself to the relationship that emerges out of
the day to day association of the management and the labor. In its wider sense, industrial relations
include the relationship between an employee and an employer in the course of the running of an
industry and may project it to spheres, which may transgress to the areas of quality control, marketing,
price fixation and disposition of profits among others.

The scope or industrial relations are quite vast. The main issues involved here include the following:
1. Collective bargaining
2. Machinery for settlement of industrial disputes
3. Standing orders
4. Workers participation in management
5. Unfair labor practices
Importance of Industrial Relations
The healthy industrial relations are key to the progress and success. Their significance may be-
 Uninterrupted production
 Reduction in Industrial Disputes
 High morale
 Mental Revolution
 Reduced Wastage.

Objectives of Industrial Relations

Sikkim Manipal University - MBA - MU0012 – – Employee Relations
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Semester: 3 - Assignment Set: 2

The main objectives of industrial relations system are:-
1. To safeguard the interest of labor and management by securing the highest level of mutual
understanding and good-will among all those sections in the industry which participate in the process of
production.
2. 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.
3. To raise productivity to a higher level in an era of full employment by lessening the tendency to high
turnover and frequency absenteeism.
4. To establish and promote the growth of an industrial democracy based on labor partnership in the
sharing of profits and of managerial decisions, so that ban individuals personality may grow its full
stature for the benefit of the industry and gheraos by providing and of the country as well.

5. To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable
wages, improved living and working conditions, said fringe benefits.
6. To improve the economic conditions of workers in the existing state of industrial managements and
political government.
7. Socialization 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.

Dunlop’s Contribution to IR System

One of the significant theories of industrial labor relations was put forth by John Dunlop in the 1950s.
According to Dunlop industrial relations system consists of three agents – management organizations,
workers and formal/informal ways they are organized and government agencies. These actors and their
organizations are located within an environment – defined in terms of technology, labor and product
markets, and the distribution of power in wider society as it impacts upon individuals and workplace.
Within this environment, actors interact with each other, negotiate and use economic/political power in
process of determining rules that constitute the output of the industrial relations system. He proposed
that three parties—employers, labor unions, and government-- are the key actors in a modern
industrial relations system. He also argued that none of these institutions could act in an autonomous
or independent fashion. Instead they were shaped, at least to some extent, by their market,
technological and political contexts.

Key actors in a modern industrial relations system. He also argued that none of these institutions could
act in an autonomous or independent fashion. Instead they were shaped, at least to some extent, by
their market, technological and political contexts.

Thus it can be said that industrial relations is a social sub system subject to three environmental
constraints- the markets, distribution of power in society and technology.

Dunlop's model identifies three key factors to be considered in conducting an analysis of the
management-labor relationship:
1. Environmental or external economic, technological, political, legal and social forces that impact
employment relationships.
2. Characteristics and interaction of the key actors in the employment relationship: labor,
management, and government.
3. Rules that are derived from these interactions that govern the employment relationship.

Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of industrial
relations may be regarded as a system in the sense that each of them more or less intimately affects
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each of the others so that they constitute a group of arrangements for dealing with certain matters and
are collectively responsible for certain results”.

In effect - Industrial relations is the system which produces the rules of the workplace. Such rules are
the product of interaction between three key “actors” – workers/unions, employers and associated
organizations and government

The Dunlop’s model gives great significance to external or environmental forces. In other words,
management, labor, and the government possess a shared ideology that defines their roles within the
relationship and provides stability to the system.

Approaches to Industrial Relations

The industrial relations scenario and factors affecting it, has been perceived differently by different
practitioner and theorist. Some have viewed it in terns of class conflict; some have viewed it in terms
of mutuality of interest of different groups; some have viewed it as a consequence of interaction of
various factors both within an organization and outside it. Based on these orientations, several
approaches have been developed to explain the dynamics of IR.

• UNITARY APPROACH
• PLURALISTIC APPROACH
• RADICAL APPROACH

This perspective focuses on the fundamental division of interest between capital and labor, and sees
workplace relations against this background. It is concerned with the structure and nature of society
and assumes that the conflict in employment relationship is reflective of the structure of the society.
Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their
exploitation by capital.

Q5) ‘Explain the steps in formal grievance redressal procedure.

Ans:-
Grievance may be defined as ‘a complaint or resentment against any unjust or unfair act’. Grievance is
any issue associated with an organisation or its management like employee discrimination or
harassment by managers. Grievance may also be any alleged violation of employee contracts or
settlements or violation of any laws, or on race, age or sex discrimination.
The International Labour Organisation (ILO[2]) defines a grievance as ‘a complaint of one or more
workers with respect to wages and allowances, conditions of work and interpretation of service,
condition covering such areas as overtime, leave, transfer, promotion, seniority, job assignment and
termination of service’.
Our society has police stations, panchayats and NGO that handle grievances of the public. In the same
way, organisations have grievance redressal committees where aggrieved employees present their
unresolved issues. Organisations generally provide a quality work environment to boost employee
morale and enhance employee performance to help the organisation achieve its goals. Employee
grievances are one of the factors that impede establishing appropriate work environment. To establish
good work atmosphere and to assure employees, grievances handling is important for any organisation.
In this unit we will learn the different techniques of grievances handling. Organisations ought to be
efficient in handling employee grievances and ought to have appropriate dispute resolution and
grievance handling

Steps in Grievance Redressal Procedure

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Organisations (whether unionised or non- unionised) are legally bound to provide in a written
statement of terms and conditions of employment, details of the person to whom any employee who
has a grievance may apply. A grievance procedure sets out how such an application is made and how it
is dealt with. The procedure aims to settle the grievance as quickly, fairly, and as near to the point of
origin as possible. In practice this means that the issue is more often settled by the employee’s
immediate supervisor or line manager. The grievance procedure describes about what happens if the
grievance cannot be resolved at this level. The different types of grievances procedures are discussed
below.

Formal Grievance Redressal

There are three formal stages to redress any grievance. Each stage has a form which is numbered
according to the stage it belongs. First, it has to be noted that the grievances have to fall under one of
the following categories to be considered as one:
· Amenities
· Compensation
· Conditions of work
· Continuity of service
· Disciplinary action
Stage I of Grievance Redressal
An employee who has a grievance meets the shift-in-charge and discusses it. If necessary, the
employee obtains a copy of grievance form 1. It is done within a week of occurrence of the aggrieving
incident or when the employee became aware of the situation. In case of promotion, a time limit of six
weeks from the date of the promotion is permitted.
The employee fills up the particulars and hands it over to the shift-in-charge and obtains an
acknowledgement receipt in return. The shift-in-charge makes the necessary enquiries and returns the
form to the employee with remarks filled in the form within two working days from the date of receipt
of the form. In cases where reference to higher authorities or to another department is necessary,
more time is provided.
Stage II of Grievance Redressal
If the matter is not resolved at Stage 1, the employee obtains grievance form 2 and submits it to the
next senior manager. The senior manager arranges a meeting within three working days. The
department head discusses the issue with the concerned supervisor and the employee and returns the
grievance form to the employee with remarks. A unionised member may assist the employee at this
stage of grievance redressal.
Stage III of Grievance Redressal
If the employee is not satisfied with the reply of the departmental head, the employee appeals to the
Chairman of his Unit Grievance Redress Committee within seven working days of the receipt of reply at
Stage II. The employee obtains a copy of grievance form 3 from the shift-in-charge.
The recommendations of the Unit Grievance Redress Committee are considered unanimous and binding
on the employee, if no objections are raised by either the management or the union. If objections are
raised, the matter is sent for further consideration to the resident director who discusses it over with
the president or the deputy president before arriving at a definite conclusion. Figure 7.2 depicts the
formal flow of grievance procedure.
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Semester: 3 - Assignment Set: 2

Figure: Grievance Handling Procedure within an Organisation

Informal Grievance Redressal

In the informal method, the aggrieved employee directly approaches the shift-in-charge or section head
(in case of a major grievance). They engage in a direct consultation and resolve the grievance amicably
in stage I itself. This way, the employee saves a lot of time and also avoids going through the
psychological tension and pressure that comes with a long and formal procedure.
Most employees agree that the informal method of resolving grievances directly approaching the
supervisor is a much better and less complicated method to redress grievances. Most employees feel
that the formal system was too tiresome and time consuming.
Collective Bargaining
It is important to differentiate individual grievances from group grievances. If the issue involves one or
a few individual employees, it is handled through a grievance procedure. But when the issue involves
policy implications and wider interests, they are resolved by the method known as collective bargaining.
Collective Bargaining is a grievance handling process where a large number of employees are involved
and their issues are handled collectively. Unions typically represent the employees during the process
of collective bargaining. The primary role of trade union is to protect the interests of its members.
Collective bargaining is a negotiation method undertaken by the union with the objective of resolving
labour issues while protecting employee interests.
Grievance procedure can be categorised in another way depending on the policy adopted by an
organisation. The policies are Open Door and Step Ladder Policy. You will learn in detail about the two
policies in the next section.
Types of Grievance Policy
Grievance procedure is a communication between an employee and the management intended to
resolve a grievance. Grievance procedures are different in different organisations. It depends on the
policy adopted in the organisation. In the previous section, you learned the two different policies
followed by organisations:
• · Open Door Policy
In this policy, the distressed employee is free to meet the top executives of the administration and get
his grievances redressed. This policy normally works well only in small firms where the management is
more transparent and approachable to all employees.
In larger organisations, top management executives are usually very busy and have no time to spare
on individual employee grievances. In addition, it is believed that open door policy is suitable for
executives as operation employees may be hesitant to approach the top management.
• · Step Ladder Policy
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Semester: 3 - Assignment Set: 2

In this policy, the distressed employee has to follow a step by step method to get the grievance
redressed. In this process, whenever an employee has a grievance, the problem is presented to the
employee’s immediate supervisor. If the employee is not happy with resolution stated by the superior,
then the grievance is discussed with the departmental head. The crisis is generally discussed with a
joint grievance committee.
If, even the committee is unsuccessful at resolving the grievance, it is then presented to the chief
executive. If the chief executive also fails to find solution, then the grievance is presented to voluntary
arbitration where the decision of authority is binding on both the organisation as well as the aggrieved
employee.
Grievance Policy in Indian Industry
Let us look at the grievance policy as adopted by Indian industry. The Indian Labour Conference has
adopted a Model Grievance Procedure. It is consists of six steps to follow in order to redress a
grievance. First the aggrieved employee approaches the foreman and presents the grievance orally. If
the employee is not satisfied with the redressal, the supervisor is approached. The supervisor provides
an answer in two days. If still the employee is unsatisfied with the redressal, the head of the
department is approached, who gives an answer in three days.
The next level is the Grievance Committee that consists of representatives of the employee and the
employer. The grievance committee gives an answer within a week. The next level for redress
grievance if the employee is still not satisfied is the manager who responds in three days. If no
agreement is reach till this step, the grievance is referred to voluntary arbitration where the decision is
binding to both the employee and the employer.
Even though the legislation spells out the Model Grievance Procedure, organisations do not always
follow the procedure. Sometimes, organisations follow procedures similar to the legislated grievance
procedure.

Q6) What are the different types of disciplinary problems.

Ans:-

Five types of discipline that might be utilized in dealing with employees in the long term care
environment are:

1) verbal reprimand,

2) written reprimand,

3) docking pay,

4) suspension,

5) termination.