You are on page 1of 30

Employee Relations Management Subject Code MU0012 Assignment Set- 1 Q.

.1 List the core issues of employee relations management? Ans: Core issues of Employee Relations Management (1) Conflict Management Conflict management refers to the manner in which mangers handle grievances and disputes. According to Gennard and Judge, Employee Relations aims to resolve difference between the various interest groups regardless of whether these groups comprise different categories of managers or employees. Workplace conflicts arise due to differences in perceptions, culture, employee biases, gaps in communication, and so on. A win-win approach is used to resolve conflicts. Mediation and counselling are adopted for resolving conflicts rather than using formal discipline measures. Managers are trained both to avoid and to resolve disputes. External mediators can also be called in if necessary. Large organisations like public sector companies prefer to use internal mediators to resolve conflicts. Unresolved work place conflicts can have a negative impact on the organisation. For example, if the production manager and the quality control manager have differences about implementation of quality procedures, then the work of both the divisions is affected.

Figure for Causes of Workplace Conflicts Conflict management skills help employees get along with the other employees, their managers and the customers. These skills help managers identify conflicts,

respond to them, get better co-operation from the employees, and avoid conflicts from spreading to other parts of the organisation. The following skill set help managers deal with conflicts: Conceptual skills: Managers need to first understand the causes of conflicts and the different strategies and tactics they can use to resolve the conflict. Communication skills: Managers require good listening skills and the ability to ask the right questions to ascertain the cause of the conflict. They must avoid harmful statements and remain rational. Negotiation skills: Managers need to know the policy of give and take required to resolve conflicts. Conflicts are resolved by adopting the following strategies: (i) Counselling: Only a few organisations have professional counsellors on their staff. Many organisations train their managers to counsel their subordinates. Often, just by employing nondirective counselling (listening and understanding), managers can help frustrated employees. (ii) Discussions and Debates: Task conflicts are resolved by discussing or debating the options. Consensual decision is made after considering every option. (iii) Compromise: This method tries to resolve conflicts by arriving at a solution which satisfies at least part of the requirement of each party involved. (iv) Using third parties: As serious conflicts have a negative impact on organisations, third parties with specialised skills are used as arbitrators, mediators or ombudsmen to resolve them. (2) Internal Communication Employee engagement can only be obtained if the senior management communicate frequently on a wide range of business and organisational issues. Organisations with good employee relations give a high priority to internal communication. Such organisations ensure that the employees completely understand the communications made to them. For example, The South-West Trains Company has a very good relationship with its unions. But when the management realised that not all employees were being kept informed about the different issues, they decided to use more direct means of communication. At present, ad-hoc forums are held to get feedback from employees. Time with the manager sessions keep the line managers in touch with the operations staff. The intranet and e-mail are used in addition to team briefings to communicate with all the employees.

(3) Employee Engagement Mike Johnson describes employee engagement as a combination of commitment and organisational citizenship. Organisations can be successful only if the employees have a feeling of job security, respect, recognition, and purpose. Organisations that have good employee relations value teamwork and employee feedback. Engaged employees are more committed, helpful, productive and less inclined to take leave. The Figure below depicts the indicators of employee engagement.

Figure for Employee Engagement Indicators People management and development activities like training and job design contribute to employee engagement. A positive psychological contract with the employees enhances performance. HR professionals are employee champions and focus on the needs and aspirations of the employees. Employee involvement can be achieved by the following practices: Having formally designated teams Having regular team briefings Undertaking performance appraisals Using problem-solving groups Involving employees in decision making Dell is a computer manufacturing company and has been ranked among the top ten companies by Fortune magazine. It aspires to be a great company and a great place to work. It focuses on the team and individual contributions to the team. Line managers interact with individual team members. All employees are judged on the basis of how they interact with people and their technical proficiency. Quarterly results meetings are held across the business and senior

managers answer questions posed to them. Managers share results with the team and develop team action plans. Tell Dell surveys are held every six months. These surveys help in finding if the managers give regular feedbacks, manage people properly, set a good example of ethical behaviour and so on. Thus Dell engages its employees by constant employee involvement. (4)Career Management Career development of employees is organisationally supported, manager facilitated, and employee driven. The career management process is based on the establishment of specific goals and objectives. The career management process commences with the formulation of specific goals and objectives. The goals can be of the following kinds: Short-term goals: These are goals to be achieved within the next 1 to 2 years. These are more specific and easy to formulate. Intermediate goals: These are goals to be achieved in the next 3 to 5 years. These are more difficult to formulate as compared to short-term goals. Long-term goals: These are goals to be achieved after 5 years. They are more fluid and very difficult to formulate.

Figure for Employee Career Development As the nature of the work changes employees may have to modify and update their goals. The above Figure shows the employee career development cycle where managers guide, motivate and provide opportunities to employees in every step towards developing career. Organisations exercising good employee

relations have an environment in which employees take control of their own development and maintain their employability. Such organisations ensure that employees are given fair career advancement opportunities. Discriminations are not made on the basis of race, gender or ethnic group. The framework of such organisations enhances employee potential. (5)Commitment Employee commitment can be defined as the psychological bond of the employee with the organisation and the degree to which the employee identifies with the organisational goals. Employee commitment is an important factor that determines the success of an organisation. Employee commitment is influenced by the following factors: Organisational Values: Organisational values influence employee behaviour. If the organisation values employee participation, the employee feels more committed to contribute to the success of the organisation. Relationship with Supervisor: If the employee has a good relation with the supervisor, it improves commitment. A supervisor has to share information, provide timely feedback and reward good performance. Job Nature: When the job satisfies the employee, commitment increases. Employees given routine or repetitive tasks with no challenges to stimulate them have their levels of commitment decreases. Entrusting employees with responsibility and giving them more autonomy increases commitment. Organisational Justice: When employees work in a fair and just environment, their commitment increases. Promotions and wage increments need to be awarded in a fair and transparent manner. Employee grievances also need to be addressed and conflicts resolved immediately. Increasing commitment is a business necessity. The benefits of gaining employee commitment are as follows: Organisational performance is improved. Employee motivation increases and this increases productivity. Profits increase as sales increases Employee retention is increased. Cost savings is enabled. Training costs of new employees gets reduced. Conflicts in the organisation reduce.

(6)Talent Management and Retention Successful organisations have an effective employee retention strategy in order to maintain their growth and leadership. Organisations which do not give priority to retaining employees lose them to their competition. It is much easier to retain satisfied employees than recruit newcomers. Training newcomers to become productive is very costly and requires more effort and resources. Talent can be retained only by enhancing employee motivation and job satisfaction. Figure 1.4 shows a diagrammatic representation of the factors affecting employee retention.

Figure for Factors Affecting Employee Retention The following are some of the strategies that organisations adopt to retain their employees: (i) Employee Motivation with Learning: Employers encourage learning in the organisation. They sponsor employees when they undertake any enhancement courses after agreeing with the employees that they would continue to work for the organisation for a specific time period. These employees can return to the workforce with better qualifications and hence perform better. (ii) Use Money as a Motivational Tool: Money is a complex factor and its influence on employee retention cannot be defined easily. But it is a fact that money represents purchasing power and employees who earn more are more satisfied than other employees. (iii) Brand Building: This is a long-term approach and aims at attracting the best of talents. It requires consistency in operations and good organisation culture to enhance the image of the organisation.

(7)Training Many organisations have a policy of personal development of employees. Training programs are undertaken by organisations when the results of a performance appraisal indicate that training is essential. Training programs are also undertaken to enable employees to undertake new roles which require more skills. The training programs undertaken by an organisation deal with the following: (i) Communications: People with different languages and customs are employed and they need to be trained in interpersonal communication. (ii) Computer skills: These skills have become very essential even for routine administrative tasks. (iii) Quality initiatives: Implementation of programs like Total Quality Management, Quality circles, benchmarking require training of employees in quality procedures, concepts and standards. (iv) Customer service: Employees need to understand and meet the needs of the customers to stay competitive. (v) Human relations: Employees are trained to avoid misunderstanding and conflicts and build interpersonal relations. (vi) Safety: Employees are trained in safety measures especially if they handle heavy equipment, work in hazardous conditions or deal with hazardous chemicals. (vii) Ethics: Organisations today are more socially responsible. Hence employees are made familiar with the corporate values and morals. (viii) Sexual harassment: Employees are made aware of what constitutes sexual harassment in order to avoid such behaviour. Training and development activities contribute to the personal development of the employee and enhance employee engagement. The benefits of having training programs in an organisation are as follows: They enhance job satisfaction and improve employee morale. They make processes more efficient thus increase productivity and profits. They increase employee motivation. They improve the corporate image of the company.

The organisation becomes more capable of adapting to new ideas and technology. The organisation has more innovative strategies and ideas. They increase employee retention and reduce turnover. Hence having training programs in organizations is very important. Training programs show the employee that the organisation is truly interested in the personal development and skill enhancement of the employee. The employee in turn becomes committed to the organisation and helps the organisation to achieve its goals. (8) Benefits Administration Employees are the most important asset of an organisation. Organisations that practice good employee relations management have many benefits programs in order to attract and retain employees. The problems in implementing an efficient benefits program arise due to the following reasons: The employer is unable to collect key information and verify them. The employee is unable to access information about the different benefits program. This increases job dissatisfaction and turnover. The benefits administration process has to be streamlined and automated. The features of an effective benefits administration process are as follows: It is easier to create and manage multiple benefits programs. It creates employee benefit plan profiles. It creates eligibility criteria. It maintains beneficiaries and dependents information. It facilitates performance reviews, tracks past review details, and schedules future reviews. It interfaces directly with insurance providers and payroll systems. It merges and audits monthly insurance or benefits. It complies with government requirements. There is an annual review of the benefits program.

You now know the advantages of implementing a good benefits program in an organisation. Automated benefit systems help both the employers and the employees. Good benefit programs enhance employee retention. (9) Employee Self-Service Employees feel empowered when organisations have employee self-service modules to manage personal data. The accuracy of employee information is improved with the introduction of such modules. The administrative workload of the HR staff is also significantly reduced. The following list enumerates the features of an employee self-service module: It facilitates creating and updating personal details like name, address, telephone numbers, etc. It maintains passwords for security of information. It maintains information about emergency contacts, beneficiaries, and dependents. It facilitates enrollment in benefits programs. It allows updating of tax related information like exemptions and savings details. It allows viewing of salary details like gross pay, deductions made, and net pay. It maintains bank related information for direct deposits of salary and reimbursements. It allows employees to apply for leave and check for leave balance. Employers can review the leave details of the employees. It allows employees to submit details about expenses. It allows internal and external job applications. It also permits checking of job application status. It facilitates viewing of training program details and enrolment. It maintains health and safety records. The employee self-service module enables employees to manage their personal data. The accuracy of the data improves and the work of the Human Resource staff is also made easier.

Q.2 What is organization culture? What are the elements of organization culture? Ans: Organisational Culture Organisational culture describes the psychology, attitudes, experiences, beliefs and values of an organisation. It is defined as the specific collection of values and norms that are shared by people and groups in an organisation and that control the way they interact with each other and with stakeholders outside the organisation. An organisation is said to have a strong culture if its employees are aligned with the organisational values. Organisations that have a strong culture function efficiently. On the other hand, in organisations that have a weak culture, the employees are not aligned with the organisational values. Control has to be exercised through extensive procedures and rules. In organisations with a strong culture, Groupthink can develop. Groupthink is a state wherein people do not challenge organisational thinking even if they have different ideas. Innovative thinking gets discouraged in such situations. Innovative organisations need people who are willing to change the status quo, and to implement new ideas and procedures. Elements of Organisational Culture Now that we have defined organisational culture, let us look into the elements that define organisational culture. They are as follows: (i) The Paradigm: It defines the mission and values of the organisation. It outlines the functions of the organisation. (ii) Control systems: It defines the processes and the rules which monitor the organisational activities. (iii) Organisational structures: It outlines the reporting lines, hierarchies and the direction of work-flows. (iv) Power structures: It specifies the decision makers and their power reach. (v) Symbols: It includes organisational logos, designs and symbols of power like allocation of parking space. (vi) Rituals and routines: It outlines procedures like meetings and reporting. (vii) Stories and Myths: It conveys the organisational values.

Q.3 Explain the trait theory of leadership. Ans: The Trait Theory: This theory uses traits (characteristics) to distinguish between leaders and non-leaders. The traits that indicate strong leadership are as follows: (1) Intelligence: This refers to the mental ability of a person and is only a moderate predictor of leadership. The Intelligence Quotient (IQ) of a person can be used as a qualifier for high management jobs, but once the high position is attained, an effective leader also displays good levels of Emotional Quotient (EQ). EQ helps a leader to empathise with the motivation and emotions of others. Many people feel that Carly Fiorina, the ousted leader of Hewlett-Packard, had a high IQ but a low empathy for the people around her and ignored the human aspects of her decisions. (2) Extraversion: Extraverts have higher social and interpersonal skills. They are more energetic, assertive and self-confident. As extraverts are more dominant, they emerge as natural leaders. For example, Steve Ballmer, the CEO of Microsoft, is an extraverted leader. Figure depicts traits associated with leadership.

Figure : Traits Associated with Leadership (3) Conscientiousness: Conscientious people are organised, dependable, systematic, punctual, and achievement oriented. They take initiative and are persistent in all they do. (4) Openness: People who are open to new ideas and try new things become effective leaders.

(5) Self-Esteem: People with good self-esteem assess their worth and capabilities in a more positive manner. Leaders with high self-esteem are more supportive to their subordinates. People with higher self-esteem are more selfconfident and have greater charisma. (6) Integrity: Effective leaders display honesty and integrity. Such leaders are more trustworthy. Behavioural Theory: Behavioural theory of leadership does not deal with the traits or capabilities of a leader. They focus more on what the leaders actually do. According to this theory, leadership capabilities are not inherent and can be learned. It correlates the successes of leaders with their actions. Managerial Grid Model: This is a behavioural leadership model proposed by Robert Blake and Jane Mouton. This model identifies the different leadership styles based on the concern for people and the concern for production. Figure 4.2 shows the graphical representation of the managerial grid model.

Figure : Graphical Representation of the Managerial Grid Model[3] In this model, the concern for production is represented on the X-axis and the concern for people on the Y-axis. Each axis is marked from 1 (low) to 9 (high). The different leadership styles that are identified are as follows: (i) The Indifferent or Impoverished Style (1, 1): Managers adopting this style have low concerns for both people and production. Managers are more concerned about preserving their jobs and avoiding getting into trouble. The managers do not want to be held responsible for any mistakes and are therefore, less innovative.

(ii) The Accommodating or Country Club Style (1, 9): Managers using this style are more concerned about the people than the production. Managers try to ensure security and comfort of the employees hoping that it will enhance performance. The workplace atmosphere is pleasant but not necessarily productive. (iii) The Dictatorial Style (9, 1): Managers using this style are more concerned about production than the people. Managers do not consider the needs of their subordinates. Managers pressurise their employees to achieve company goals by imposing rules and threatening them with punishment. (iv) The Status-Quo or Middle of the Road Style (5, 5): Managers adopting this style try to balance employee needs and company goals. But in trying to compromise, the managers do not meet the needs of the company or that of the employee. (v) The Sound or Team Style (9, 9): Managers using this style are concerned about the people and the production. Managers encourage teamwork and employee commitment. Managers make employees feel that they are contributing constructively to the company. (vi) The Opportunistic Style: Managers using this style exploit and manipulate their subordinates. This style does not have a fixed location on the grid. Managers adopt the behaviour which offers them the greatest personal benefit. (vii) The Paternalistic Style: Managers using this style praise and support their subordinates but discourage their being innovative. This style alternates between the (1, 9) and (9, 1) locations on the grid. Q.4 Vikram is a trade union leader with fifteen years of experience in a motor parts manufacturing factory. One of the laborers in the factory met with an accident while on duty. What will be the different means by which he will ensure that the laborer is well compensated for the work-related injury? Q5. List the advantages of collective bargaining Ans: Collective Bargaining Advantages Collective bargaining is a process of bargaining in groups as opposed to individual bargaining. The bargaining could relate to many factors such as the payment of the employees, holiday, overtime, bonus, shift arrangements and so on. There are many benefits of collective bargaining. Some of them are the following: It facilitates settlement of any disputes without any conflict It ensures that there is peace between both the parties through dialogues It facilitates participation from both the parties.

It ensures mutual trust and understanding between both the trade union and the management of the organisation. It facilitates stabilised union membership in societies that have multiple unions. It ensures healthy industrial relations. It makes the employees feel more involved and wanted in the organisation It ensures that individual stress and employee insecurities are discussed It establishes the employee and the management rights in the organisation. It develops a sense of responsibility among the employees It ensures that the strength of workforce is increased. It in turn increases the overall bargaining capacity of the workforce It ensures that the morale and productivity of the employees is increased. Effective collective bargaining ensures that the trade unions movement is efficient It facilitates in securing a prompt and fair settlement of grievances. It provides a flexible means for the adjustment of the wages and employment conditions It facilitates the management to resolve issues at the bargaining level rather than taking up complaints of the individual workers. It ensures a sense of job security among the employees It ensures that a channel of communication is open between the workers and the management. This further increases worker participation in decision making. It plays an essential role in settling and preventing industrial disputes It ensures that a harmonious industrial climate is established. This helps the pace of nations efforts towards economic and social development. It encompasses fluidity and ample scope for a compromise, for a mutual giveand-take before the final agreement is arrived at.

Q.6.Write a note on common applications of Human Resource Information System (HRIS) ? Ans: Common Applications of Human Resource Information Systems An HRIS is an integrated approach to acquiring, storing, analysing and controlling the flow of information throughout an organisation. A well-developed HRIS is useful in many HR applications and can enhance the efficiency and timeof-response of many HR activities. Some of the common applications of HRIS are as follows: 1) Planning: The HR activities implemented by this application are personnel and succession planning, labour relation planning, target analysis and organisational charting. 2) Staffing and Employment: This application handles recruitment activities. It ensures compliance with employment equity. 3) Training and Career Development: This application deals with analysing training needs, training administration, and career planning. 4) Performance Management: This application deals with performance appraisals, and monitoring time and attendance of employees. 5) Compensation and Benefits: This application deals with employee compensation and benefits administration. Details of the above applications are as follows: 1) Planning:Planning is a very important activity of HR management. Planning identifies and implements the activities that ensure that the organisation is moving in the right direction. Planning is concerned with implementing the business strategy of the organisation. The components of planning are as follows: Environmental Scanning: It identifies the business opportunities and threats after reviewing the external factors that affect an organisation. Business Plan Analysis: It reviews the business plans and strategies. Manpower Planning: It reconciles any imbalance between HR supply and demand. Program and Policy Review: It ensures that the HR policies and programmes are aligned with the organisational needs.

The components of HRIS which assists in planning are: Work Force Profile Review: It assesses the demand and supply of workforce by analysis of employee data elements like age, wage, performance rating, position and organisational data elements like employee turnover. Work Force Dynamic Analysis: It examines the employee movement in the organisation by analysing historical data like service, promotions, performance ratings, and salary. Various reports which provide information on lateral transfers, promotions, new recruits and turnover are generated. Succession Planning: It identifies potential successors for critical positions. Employees are scored and assessed for suitability of pre-defined job profiles. The staff details (job history, competencies, assessments) is analysed to find which position the individual can fit into. Employee databases are searched to retrieve profiles of employees who fit certain criteria. Reports are generated of individual competencies. Strategic HR Planning: It analyses HR data and compares it with performance benchmarks. It is used to evaluate policy compliance and impact of new programmes. 2) Staffing and Employment Staffing refers to the process of attracting candidates, interviewing them, and negotiating a compensation package with them. The process of staffing is very important as organisations have to recruit the right candidates who will help in realising the organisational goals. The components of HRIS which assists in staffing and employment are: Applicant Tracking: This helps in identifying competent candidates quickly and effectively. It organises information about applicants and their availability and helps in automating the recruitment process. Resumes are imported from job portals. Candidates are short-listed by pre-screening their profiles. It helps to match applicant capabilities with job openings. It compares candidates applying for the same job and helps in scheduling and tracking interviews. The tracking component also generates employment letters. For example, Bell Helicopter Company uses its HRIS to recruit technical staff. MCI Telecommunications uses a resume tracking system called SmartSearchTM to spot eligible candidates. Employment Equity Compliance: Employment Equity is a process which helps organisations to identify and eliminate barriers in their employment policies and procedures in order to have representation of women, people with disabilities, and minorities at all levels. Employee personal data (gender, sex, and group) and reports of employees hired and employees promoted are used to make decisions to ensure fair employment practices.

3) Training and Career Development Employee training and career development is very essential for motivating employees. HRIS is a very important training and career management tool. Training: Organisations need to measure costs of training and their effectiveness. HRIS helps in scheduling and monitoring training programmes. Employees use the self-service module to apply for training. Employee data like skills, goals and performance rating are used to evaluate training needs of an employee. Based on this analysis, the HR personnel or managers grant training approval. Training budgets are fixed using HRIS tools. Career Development: HRIS can be used to monitor employee career trajectories. Many organisations seek to fill vacancies from within the organisation. HRIS informs employees about the current vacancies and the requirements of those positions. HR personnel are also able to identify employees who fit the requirements for vacant job positions by using employee data. For example, the company 3M has implemented a job information system which lists the jobs available companywide. All employees can view this listing and apply for the desired position. 4) Performance Management Employee performance management is essential to ensure that employee performance is monitored. This makes the organisations more productive and profitable. Performance Appraisals: Performance appraisal results are used to make administrative decisions like promotions, salary increments and so on. Feedback of performance appraisals improves employee performance. Performance management of HRIS uses data like position, supervisor, date of appraisal, performance rating, appraiser comments, history of performance, and date of next appraisal. Performance appraisals help in identifying the strengths and weaknesses of employees and their training needs. Time and Attendance: Information on attendance and time worked is very important as absenteeism results in considerable loss to the organisation. Time and attendance module analyses information like time spent on a job, start date, end date, total time taken and reason, and leave details. Overtime calculations are also performed. Some HRIS also manage attendance details of multiple shifts. Time sheets are created for different categories of employees. Time sheets can also be configured for each project. Off-time information is also captured. Time sheets can be approved. After approval, time worked and leave details are exported to payroll module. Department-wise reports of absenteeism with reasons are generated.

5) Compensation and Benefits Attractive compensation packages and good benefits programme help motivate employees and retain skilled employees. The University of Michigan uses HRIS to manage pay, benefits and pensions of its current and retired faculty members. Compensation Management: All organisations have to offer a competitive compensation package, maintain payroll costs and comply with government laws. Employee compensation is determined by examining jobs and determining their relative worth to the organisation. Compensation Management function of HRIS uses data like salary basis (hourly, commission and so on), bonusses, hours worked, types of increment (annual, biannual, promotion) and interfaces with the payroll system. It interfaces with the performance management system to ensure correct pay based on performance ratings. Benefits Administration: Employees use the HRIS to enroll in various benefit programmes. For example, the employees of Apple Computers enroll in benefit plans using the HRIS of the company. Employees can also change their enrollment plans. HRIS determines benefits by using employee data like date of enrollment, type of insurance plan opted (Health, Life), memberships availed (health clubs), loans and beneficiary details. HRIS automates the computation of flexible benefits. Employees are also educated about the various benefit plans they are eligible for through HRIS.

Employee Relations Management Subject Code MU0012 Assignment Set- 2 Q.1) Explain the approaches for management of overseas branches. Ans: Management of Overseas Branches Internationalised companies have a wide range of choices to decide on how an overseas branch can be managed. The deciding factors are the industry in which they function, the structural form, and the stage of development of the company. There are four major approaches to manage overseas branches. They are: Ethnocentric Polycentric Regiocentric Geocentric The details of above approaches are as follows: (1) Ethnocentric: It is often seen that the decisions relating to value, culture and strategies are determined by the parent company. Very little power is vested in the subsidiaries. The subsidiaries of a company are managed by an expatriate or a former staff of the parent company. The locals have very little to do with the way things are carried out in a company. Lines of communication are usually unidirectional as commands are issued by the headquarters. The host-country branch has a diplomatic role to play but is dominated by the customs of the parent company. It is believed that this is during the first stage of development of companies intending to go international and the management at the headquarters takes an alternative step only after a specific period of time (when the company has made progress or established itself internationally). Many American and Japanese companies have been charged of trying to introduce employee relations policies and strategies which are suitable to their home culture but incompatible with the host-country tradition. This strategy is followed in organisations as they believe that their strategies are not only the best but also the only way to proceed. The organisation runs the risk of not taking notice of the tradition and culture of the host-country thereby offending the local employees. The local employees in the subsidiary may not believe in the same values and thoughts and hence do not adapt to the parent company regime. McDonalds follows the ethnocentric approach.

(2) Polycentric: Here the local conditions, values and system are taken into consideration in a company. The subsidiary is governed by a home-country (the country in which the headquarters is located) staff and considered as a selfgoverning business unit. Major decisions, strategy planning and financial investments are decided at the headquarters. However, in this approach the manager of the subsidiary is a local staff and manager-employee relationship is better. This approach helps in maintaining the policies in employee relations as it is compatible with the culture and regime of host-country. Companies like Lever Brothers and Unilever follow the polycentric approach. (3) Regiocentric and Geocentric: Here the subsidiaries are not limited to boundaries such as home country or the region where an organisation has presence. It is organised on a regional basis or geographic basis such as worldwide or global. Control of staff and decision making responsibility is based on regional or geographic constraints. In case of regiocentric, the managers are appointed from the host-country and in case of geocentric, the managers are from any part of the world, that is, the most suited person is appointed for the job. Colgate and Palmolive are examples of companies that follow geocentric approach. It is seen that the companies which follow Polycentric, Regiocentric or Geocentric are truly globalised. In such companies we can expect development of a region or worldwide approach to employee relations policies and practices Q.2) What is Employee participation? Give examples. Ans: Employee Participation Employee participation is the process by which workers take part in the decision making processes, and do not just blindly follow the instructions of their supervisors. Employee participation is essential for empowerment of employees in an organisation. Empowerment implies decentralising authority in an organisation. Team participation is very essential for empowerment. Team members are motivated to make decisions by themselves according to the guiding principles and structures that are set up for self management. Quality initiatives within an organisation require employee participation. Each and every employee is encouraged to take incorporate quality measures in all activities in order to satisfy the needs of the customers. Employee participation is also essential for the efficient management of human resources in organisations. Employees feel motivated when organisations empower employees to take decisions. Employee participation is also known as Employee Involvement (EI)

Examples of schemes which encourage employee participation include the following: Project Management Teams or Quality Teams: Workers perform tasks that assign significant responsibilities to the team. Suggestion Schemes: Workers are provided with channels through which they can convey new ideas to their supervisors. Frequently, deserving suggestions are suitably rewarded. Consultation Exercises and Meetings: Workers share their ideas and experiences which help to achieve the common tasks and goals. Delegation of Responsibilities Within the Organisation: Employees who deal with customers often have to be empowered to make their own decisions and assigned more responsibilities. Multi-Channel Decision Making Techniques: Decisions are not only taken in a descending flow, they also result from communications upwards, sideways, and in various other ways within the organisation. Collective Bargaining is also a form of employee participation. Collective bargaining represents a process of negotiation about working conditions and terms of employment whereby two or more parties (employers and employees associations) come together and negotiate with a view of reaching an agreement. Thus collective bargaining enables employees to take part in the decision making process through the employee representatives of the trade unions. Adoption of the Employee Stock Ownership Plan (ESOP) makes employees stakeholders in the company and hence increases employee participation and feelings of ownership. For example, United Airlines of the U.S.A. gave 55% of its equity stake to its employees in exchange of pay cuts and was able to secure employee participation. The Occupational Health and Safety Management Systems of U.S.A. also recommends employee participation at all levels in decisions that affect the health and safety of employees. It suggests the use of safety representatives, joint labour-management committees, work groups and teams to support employee participation in implementing health and safety schemes. Employees can conduct workplace inspections, analyse safety hazards, develop and revise safety rules, and train new employees. Q.3 Write note on organizational justice. Ans: Organisational Justice Organisational Justice is the main factor of citizenship behaviour and its related outcomes are satisfaction, and commitment towards work. It also focuses on

employees equality in outcomes such as payment and the procedures to determine those outcomes. Organisational justice builds trust in employee, which in turn gets displayed in citizenship behaviour. The concept of justice differs based on the peoples cultural values. The people with collectivistic cultures differ from the people with individualistic cultures, in terms of equity and equality. With good organisational justice, you can have more positive outcomes from an employee in the workplace. If employees are treated with full justice, they follow all the rules and regulations of an organisation. They will be more committed towards work, have more trust in organisation, and feel more satisfied with the justice they receive. Type of Organisational Justice Organisations focus on three specific forms of justice. They are: Procedural Justice Procedural justice is identified by the equality of processes that helps to determine the type of outcomes used, the way they are distributed, and to whom the outcomes are given. Some of the organisational procedural justice includes freedom from bias, accuracy, consistency, and correction of errors. Distributive Justice Distributive Justice is identified by the reasonable employees in an organisation that recognise the actual outcomes they obtain. Issues may arise if the employee experiences something negative in the workplace that cannot be prevented. Issues may also arise if they do not get the same outcome they expected to have or when the outcomes are inadequate. Interactional Justice Interactional justice is identified by the awareness of equality in the procedural treatment of others. Issues may arise if the employees are judged wrongly and denied of respect or privacy.A low level of interactional justice can be related to possibility of sexual harassment. Recent study shown that differences in personality and aggressive behaviour of an individual effect the way they react to the inequality in the organisation. Employees perception of procedural justice is determined by re-organising their performance rating. With this rating system, employees view of organisational justice increases.

Organisational Misconduct Organisational misconduct has now been recognised as the matter of serious social and economic concern. It has also been estimated that the annual cost of corporate crime, is much greater than ordinary crime. Organisational misconduct are typically hidden, hence their scope and nature are not very clear. Thus, investigations remains limited to self-report surveys. Basic Organisational Liability Standards There are three basic organisational liability standards to deal with agent misconduct. These liabilities are called duty-based liability regimes that identify the presence of internal work structure, to determine if the organisation has met its duty of care or not. The three basic Organisational liability standards are: Strict vicarious liability Negligence Composite Regimes Compliance (1)Strict vicarious liability This liability is imposed when organisational staff conducts some punishable crime, despite many warnings given to them by the organisation, to stop the harm. The basic idea behind strict vicarious liability is to incorporate all of the costs, associated with their activities. This leads to appropriately priced organisations products and delivery of the finest amount of services. Strict vicarious liability systems compel the organisations to implement the most favourable level of internal organisational enforcement and prevention technique. When the organisation starts to cover up all the costs of any damage it causes, this technique helps to reduce the frequency of the harm. The rate of the harm is reduced up to the point such that, reduction equals the benefits. (2)Negligence This liability is imposed when organisational staff conducts some punishable crime and the organisation fails to provide standard of care. This clearly states that organisation was not able to avoid the harm. This in turn implies that, they failed to observe industry standards with regards to various operating methods. Negligence-based Organisational Liability Systems do not compel organisations to implement level of organisational enforcement and production. As this liability fails to cover up all the cost of their harmful conduct, it is considered as inferior to strict liability regimes.

(3)Composite Regimes Compliance This liability regime is imposed by combining liabilities of both strict vicarious liability and negligence. Composite Liability Regimes assign liability, based on strict liability standard, however approves this allocation of liability based on a negligence standard.. Q4) Describe the main actors involved in industrial relations. Ans: The Actors in the Relationship The following are the main actors, who are directly involved in Industrial Relations: Employers: Are those who engage a worker and pay the worker a fixed salary on return for services rendered. Employers have the right to employ and fire employees. Their decisions like relocation, introduction of new technologies, mergers and acquisitions affects their employees. Employee: Is an individual who is hired by a person or a business and is remunerated for the services rendered. Employees need a good working environment. They have a right to voice their opinions and convey their grievances. Employees generally form a union in order to obtain their rights from the management. Employees expect the union to support them on all issues. Government: They influence employee relations by means of laws, rules, regulations, and policies. The government establishes the legal framework for management-trade union interaction. The government also helps in settlement of industrial disputes. They also regulate incomes and establish minimum wages. For example, in Australia, the Commonwealth has enabled employers under their jurisdiction, to bypass unions and negotiate directly with individual employees. But the individual states have reaffirmed the collective bargaining process and the role of unions. Trade Unions: They promote and protect employee interests. Trade unions help in making decisions by following the process of collective bargaining and negotiations, with the management. Good trade unions improve communication between the management and the employees. Trade unions also help in settling of industrial disputes. For example, the United States has low levels of unions compared to the European Union. Hence, the companies in the United States hire and fire employees at will, while their European counterparts have to consult the trade unions. Employer Associations: They help in enhancing the performance of enterprises. Employer Associations represent employers in collective bargaining, depose before tribunals and courts, and engage in public and media relations. They also provide a forum for discussions and debates on specialised subjects.

Employer Associations advise, educate, and assist members in industrial disputes. They also lobby with the government for industrial reforms. Courts and Tribunals: These help in resolving industrial disputes. Labour courts examine the legality of orders passed by the employers, the discharge of employees, withdrawal of concessions or privileges, matters relating to lock-outs and strikes. Industrial tribunals deal with matters related to wages, compensations and other allowances, bonuses, rules of discipline, retrenchment, and closure of organisations. For example, the Australian Industrial Relations gives great importance to courts. The courts give quick binding decisions thus, minimises economic losses. Figure below represents all the above actors who form a major component of Industrial Relations.

Figure : Actors Involved in an Industrial Relations System The influence of each actor varies in different industrial systems. In some systems, the government dominates the relationships and in some others, it only plays a minor role. Some industrial systems emphasise employee interests while others emphasise employer interests. Employees usually interact with their employers through representative unions. Some countries facilitate these trade unions, whereas some countries discourage them. Hence, the goals and actions of the trade unions vary from country to country.

Q5) Explain the steps in formal grievance redressal procedure. Ans: Steps in Grievance Redressal Procedure 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 employees 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.

Figure : Grievance Handling Procedure within an Organisation Informal Grievance Redressal In the informal method, the aggrieved employee directly approaches the shift-incharge 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. Q6) What are the different types of disciplinary problems. Ans: Types of Disciplinary Problems Discipline is essential for organisations to regulate employee behaviour and to channel employee efforts in realising organisational goals. Management deals with all acts of indiscipline or misconduct according to the organisational rules and policies and the nature of the indiscipline. Indiscipline can be classified as minor or major on the basis of the impact they have on the functioning of the organisation. Minor acts of indiscipline include absenteeism, late coming, negligence at work, failure to be present when required, inefficiency and acts of omission. Management correct minor indiscipline with written or oral warnings. Major acts of indiscipline have to be dealt seriously and they include theft, fraud, breach of contract, accepting or giving bribes or gifts, drunkenness, violent or disorderly behaviour, insubordination, sleeping while on duty, disclosing confidential information, sabotage or misuse of company equipment, inciting other employees to act against the interests of the company, absence without leave for a period of more than a month, and committing any offence punishable by the law of the land

The main types of disciplinary problems are as follows: Excessive Absenteeism: Absenteeism occurs when an employee does not report to work due to time off, illness or any other reason. Excessive absenteeism results in loss of productivity. Absenteeism is corrected by employing progressive discipline. Employees need to be aware of the absenteeism policy of the company. They also have to be aware of the fact that the company monitors employee absence. Employees need to take responsibility for their absenteeism and substantiate their absenteeism with valid records like medical certificates in case of health related absences. Poor Timekeeping: Reporting late to work, leaving early, indulging in extended tea or lunch breaks, doing personal work during office hours, and other timewasting practices reduce the time spent doing productive work. Poor timekeeping disrupts business and creates a bad atmosphere. These habits have to be curbed and employees need to know that it is mandatory for them to spend certain fixed hours at their workstations or premises doing productive tasks. Improper Personal Appearance: Dress codes are enforced in organisations to project a professional appearance or for safety reasons. Employees are to be made aware of the consequences of their inappropriate attire. For example, synthetic clothes can catch fire easily. Company policy also needs to describe situations where the employee has to dress formally. Substance Abuse: Alcohol and drug abuse can lower employee concentration and decrease performance. Substance abuse also results in absenteeism, accidents at workplace and inappropriate behaviour. Organisational policies on substance abuse need to be communicated with the staff. Employees who are addicted to alcohol or drugs have to be counselled or helped in other ways like therapy and detoxification programmes. Defective Performance: Defective performance results when a task is not completed on time, or is of sub-standard quality, or the task is not done according to requirements. An employee may perform poorly either due to lack of interest or due to lack of capability. Managers need to assess poor performances individually, determine the constraints and take corrective actions. Poor Attitudes: Sleeping on the job, being careless while working, fighting with co-workers, gambling in the work place, insulting supervisors, being rude to customers and colleagues, and such practices reflect poor attitudes. These actions can adversely affect other employees. Thus, these attitudes have to be corrected to maintain a good and productive work atmosphere. Violation of Health and Safety Rules: Smoking in unauthorised places, failure to use safety devices, not following safety rules regarding fire safety, dealing with hazardous chemicals, electrical and mechanical equipment and radiation protection are serious violations and have to be dealt with immediately and effectively.

Insubordination: Insubordination can take the form of refusing to perform a legitimate task that has been assigned, ignoring the instructions of managers, criticising or challenging the orders of a superior, using abusive language or making disrespectful gestures like rolling the eyes. Insubordination can affect the morale of the entire team. Organisations need to spell out their policies on insubordination. Managers have to be equipped with proper procedures to deal with insubordination. Workplace Violence: Companies need to have training programmes to its security personnel so that they recognise warning signs and know how to deal with violent behaviour of employees. Employee handbooks need to clearly state that violent behaviour will not be tolerated and will result in termination. Harassment: This behaviour causes discomfort to the co-workers and reduces employee morale. Making crude and sexual remarks or forcing another coworker to do certain non-legitimate tasks constitutes harassment. For example, a manager may repeatedly ask an unwilling subordinate for a date. Companies need to have in place a clear sexual harassment policy and employees have to be trained on what constitutes harassment. Theft and Sabotage: Sometimes employees steal money, equipment, supplies or confidential information belonging to the company. Some aggressive employees may damage or destroy organisational equipment and facilities. Some employees may falsify records and accept bribes and indulge in actions that are detrimental to the organisation. Organisations have to strictly deal with such problems.

________________________________________________________________

You might also like