Sikkim Manipal University - MBA - MU0012 – Employee Relations Management

Semester: 3 - Assignment Set: 1

Q.1 List the core issues of employee relations management?

Ans:-

Employee Relations Management (ERM) is a vital business process that manages employer–
employee and employee-employee relations. It goes by the maxim that ‘a satisfied employee is a
productive employee’.

Organisations following good employee relations realise that employees are important stakeholders in
the organisation. Employees who are content with their employers contribute more effectively towards
the goals of the organisation.

This course explains the importance of ERM in organisations and the organisational aspects that govern
employee relations in a organisation. ERM is influenced by organisational strategies, culture and other
factors like employee commitment and employee engagement. Managing organisational conflicts is also
an important part of ERM. This course familiarises you with behavioural aspects like motivation,
leadership, decision making and communication that play an important role in employee relations
management. ERM is facilitated by tools like Human Resource Information Systems (HRIS). Importance
of organisational discipline and grievance handling are also discussed in this course. Further in this
course we will see how trade unions contribute towards maintaining good employee relations in an
organisation. Many laws govern employee relations, and an effective ERM considers the laws of the
land. We will learn how factors like employee participation, empowerment and employee rewards
influence ERM. Further, we will study how to manage employee relations in organisations that have a
global presence. The contemporary issues like managing employees during crises like recession are also
discussed in this course.

In this unit, you will study the concepts of Employee Relations, Employee Relations Management, and
the importance of ERM in an organization. This unit introduces ERM tools and core issues like career
management and employee retention addressed by ERM.

The objectives of Employee Relations Management are as follows:

· Improve the effectiveness of the workforce.

· Ensure employee satisfaction.
· Gain and retain employee commitment.
· Prevent conflicts amongst employees
· Promote retention of employees.
· Improve employee-management and employee-employee communication.
some of the core issues of ERM.

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
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Semester: 3 - Assignment Set: 1

procedures, then the work of both the divisions is affected. Figure 1.1 depicts some causes of
workplace conflicts.

Figure: 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:
• 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.
• Discussions and Debates: Task conflicts are resolved by discussing or debating the options.
Consensual decision is made after considering every option.
• Compromise: This method tries to resolve conflicts by arriving at a solution which satisfies at
least part of the requirement of each party involved.
• 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.

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
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Semester: 3 - Assignment Set: 1

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.

Employee Engagement

Mike Johnson describes employee engagement as a combination of commitment and organisational

citizenship[2]. 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. Figure 1.2 depicts the indicators of employee engagement.

Figure : 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
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Semester: 3 - Assignment Set: 1

people properly, set a good example of ethical behaviour and so on. Thus Dell engages its employees
by constant employee involvement.

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 : Employee Career Development

As the nature of the work changes employees may have to modify and update their goals. Figure 1.3
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.

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
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Semester: 3 - Assignment Set: 1

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.

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

Semester: 3 - Assignment Set: 1

Figure : Factors Affecting Employee Retention

The following are some of the strategies that organisations adopt to retain their employees:

· Employee Motivation with Learning:

· Use Money as a Motivational Tool:
· Brand Building:

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:

• Communications: People with different languages and customs are employed and they need to
be trained in interpersonal communication.
• Computer skills: These skills have become very essential even for routine administrative tasks.
• Quality initiatives: Implementation of programs like Total Quality Management, Quality circles,
benchmarking require training of employees in quality procedures, concepts and standards.
• Customer service: Employees need to understand and meet the needs of the customers to stay
competitive.
• Human relations: Employees are trained to avoid misunderstanding and conflicts and build
interpersonal relations.
• Safety: Employees are trained in safety measures especially if they handle heavy equipment,
work in hazardous conditions or deal with hazardous chemicals.
• Ethics: Organisations today are more socially responsible. Hence employees are made familiar
with the corporate values and morals.
• 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.

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:
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Semester: 3 - Assignment Set: 1

· 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.

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:-

Organizational culture is an idea in the field of organizational studies and management which
describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an
organization. It has been defined as "the specific collection of values and norms that are shared by
people and groups in an organization and that control the way they interact with each other and with
stakeholders outside the organization."[1] Ravasi and Schultz (2006) state that organizational culture is
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Semester: 3 - Assignment Set: 1

a set of shared mental assumptions that guide interpretation and action in organizations by defining
appropriate behavior for various situations. Although it’s difficult to get consensus about the definition
of organizational culture, several constructs are commonly agreed upon – that organizational culture is
holistic, historically determined, related to anthropological concepts, socially constructed, soft, and
difficult to change.

This definition continues to explain organizational values, described as "beliefs and ideas about what
kinds of goals members of an organization should pursue and ideas about the appropriate kinds or
standards of behavior organizational members should use to achieve these goals. From organizational
values develop organizational norms, guidelines, or expectations that prescribe appropriate kinds of
behavior by employees in particular situations and control the behavior of organizational members
towards one another.

G. Johnson[6] described a cultural web, identifying a number of elements that can be used to describe or
influence Organizational Culture:

• The Paradigm: What the organization is about; what it does; its mission; its values.
• Control Systems: The processes in place to monitor what is going on. Role cultures would have
vast rulebooks. There would be more reliance on individualism in a power culture.
• Organizational Structures: Reporting lines, hierarchies, and the way that work flows through
the business.
• Power Structures: Who makes the decisions, how widely spread is power, and on what is
power based?
• Symbols: These include organizational logos and designs, but also extend to symbols of power
such as parking spaces and executive washrooms.
• Rituals and Routines: Management meetings, board reports and so on may become more
habitual than necessary.
• Stories and Myths: build up about people and events, and convey a message about what is
valued within the organization.

These elements may overlap. Power structures may depend on control systems, which may exploit the
very rituals that generate stories which may not be true.

According to Schein (1992), the two main reasons why cultures develop in organizations is due to
external adaptation and internal integration. External adaptation reflects an evolutionary approach to
organizational culture and suggests that cultures develop and persist because they help an organization
to survive and flourish. If the culture is valuable, then it holds the potential for generating sustained
competitive advantages. Additionally, internal integration is an important function since social
structures are required for organizations to exist. Organizational practices are learned through
socialization at the workplace. Work environments reinforce culture on a daily basis by encouraging
employees to exercise cultural values. Organizational culture is shaped by multiple factors, including
the following:

• External environment
• Industry
• Size and nature of the organization’s workforce
• Technologies the organization uses
• The organization’s history and ownership

Organizational values, role models, symbols and rituals shape organizational culture. Organizations
often outline their values in their mission statements, although this does not guarantee that
organizational culture will reflect them. The individuals that organizations recognize as role models set,
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Semester: 3 - Assignment Set: 1

by example, the behavior valued by the organization. In addition, tangible factors such as work
environment act as symbols, creating a sense of corporate identity.

The founding of an organization is a critical period in the life of the organization and the development of
its culture. An organization’s founder or chief executive has an influential impact on the development of
the organization’s culture since that person is likely to have control in hiring people with the same
values and influence the choice of strategy. By screening candidates for a cultural fit, organizations
select those employees that will be able to uphold the organizational culture. Additionally, leaders
embed culture in organizations by what they pay attention to, measure, and control; how they react to
critical incidents and crises; the behaviors they model for others; and how they allocate rewards and
other scarce resources.

Additionally, the legacy of an organizational founder may be reflected in the culture long after that
person leaves through the processes of cultural transmission (e.g. rites, stories) where the culture
perpetuates itself. The values of founders and key leaders shape organizational cultures, but the way
these cultures affect individuals is through shared practices.

Q.3 Explain the trait theory of leadership.

Ans:-

The trait model of leadership is based on the characteristics of many leaders - both successful and
unsuccessful - and is used to predict leadership effectiveness. The resulting lists of traits are then
compared to those of potential leaders to assess their likelihood of success or failure.

Scholars taking the trait approach attempted to identify physiological (appearance, height, and weight),
demographic (age, education and socioeconomic background), personality, self-confidence, and
aggressiveness), intellective (intelligence, decisiveness, judgment, and knowledge), task-related
(achievement drive, initiative, and persistence), and social characteristics (sociability and
cooperativeness) with leader emergence and leader effectiveness.

Successful leaders definitely have interests, abilities, and personality traits that are different from those
of the less effective leaders. Through many researches conducted in the last three decades of the 20th
century, a set of core traits of successful leaders have been identified. These traits are not responsible
solely to identify whether a person will be a successful leader or not, but they are essentially seen as
preconditions that endow people with leadership potential

Among the core traits identified are:

• Achievement drive: High level of effort, high levels of ambition, energy and initiative
• Leadership motivation: an intense desire to lead others to reach shared goals
• Honesty and integrity: trustworthy, reliable, and open
• Self-confidence: Belief in one’s self, ideas, and ability
• Cognitive ability: Capable of exercising good judgment, strong analytical abilities, and
conceptually skilled
• Knowledge of business: Knowledge of industry and other technical matters
• Emotional Maturity: well adjusted, does not suffer from severe psychological disorders.
• Others: charisma, creativity and flexibility

Strengths/Advantages of Trait Theory

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Semester: 3 - Assignment Set: 1

• It is naturally pleasing theory.

• It is valid as lot of research has validated the foundation and basis of the theory.
• It serves as a yardstick against which the leadership traits of an individual can be assessed.
• It gives a detailed knowledge and understanding of the leader element in the leadership
process.

Limitations of The Trait Theory

• There is bound to be some subjective judgment in determining who is regarded as a ‘good’ or

‘successful’ leader
• The list of possible traits tends to be very long. More than 100 different traits of successful
leaders in various leadership positions have been identified. These descriptions are simply
generalities.
• There is also a disagreement over which traits are the most important for an effective leader
• The model attempts to relate physical traits such as, height and weight, to effective leadership.
Most of these factors relate to situational factors. For example, a minimum weight and height
might be necessary to perform the tasks efficiently in a military leadership position. In business
organizations, these are not the requirements to be an effective leader.
• The theory is very complex

Implications of Trait Theory

The trait theory gives constructive information about leadership. It can be applied by people at all
levels in all types of organizations. Managers can utilize the information from the theory to evaluate
their position in the organization and to assess how their position can be made stronger in the
organization. They can get an in-depth understanding of their identity and the way they will affect
others in the organization. This theory makes the manager aware of their strengths and weaknesses
and thus they get an understanding of how they can develop their leadership qualities.

Conclusion

The traits approach gives rise to questions: whether leaders are born or made; and whether leadership
is an art or science. However, these are not mutually exclusive alternatives. Leadership may be
something of an art; it still requires the application of special skills and techniques. Even if there are
certain inborn qualities that make one a good leader, these natural talents need encouragement and
development. A person is not born with self-confidence. Self-confidence is developed, honesty and
integrity are a matter of personal choice, motivation to lead comes from within the individual, and the
knowledge of business can be acquired. While cognitive ability has its origin partly in genes, it still
needs to be developed. None of these ingredients are acquired overnight.

Q.4 Vikram is a trade union leader with fifteen years of experience in a motor parts
manufacturing factory. One of the laborer’s 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?
Ans:

To many people, their job is a key part of the person they think they are. It's not just a means to an
end, it's a crucial part of their identity. That's why injury or illness caused by negligence in the
workplace can have an impact and ramifications far beyond the immediate physical suffering. In the
event of being injured in a work related incident which has been caused by the negligence of others,
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Semester: 3 - Assignment Set: 1

you have every right to feel let down, either by your employer, or your workmates. While compensation
can never fully make up for the distress of a work accident, it can help reimburse you for any wages
lost and provide a sense of justice being done on your behalf.
What You Need To Make A Work Injury Claim
In order to make a claim for an accident at work, you will need evidence which proves that your
injuries have been caused by negligence or working practice in the workplace. This evidence could take
the following forms:
• Witnesses
• Employers logs
• Previous similar work accidents
• Ambulance attendance at the scene
• An accident book
• Doctors notes
There are many others forms the evidence could take, often dependent upon the nature of your
workplace.
It will then be up to yourself and the expert injury solicitor working on your behalf to prove that the
injuries were the result of negligence on the part of your employer. It has to be borne in mind when
making a claim such as this that you will be giving evidence against your employer.
Many people will feel uncomfortable doing this but always remember the following:
-- You are not alone. An expert solicitor will be on hand to guide you every step of the way.
-- Employers are insured against any losses incurred as a result of your claim - you won't be taking any
money direct from your boss.
-- Employers may actually welcome one or two cases which help them to strengthen health and safety
standards, thus avoiding larger lawsuits in the future.
-- Strictly enforced laws mean that employers unwilling to compensate for workplace injuries or to
adapt their practices will face far stiffer penalties.
You may still feel worried about making a claim against your boss, despite the legislation in place to
protect employees who do so, in which case it will be valuable and reassuring to discuss the details of
your case and any possible ramifications with a solicitor before embarking upon any action.

There are some injuries which crop up on a regular basis as a result of workplace accidents. These
include back injuries, hernias and hand injuries. In the case of common injuries such as these, the
claim may be easier to settle as the levels of compensation are already well known. Work injury claims
are often complicated by the nature of the workplace itself, and for more detail on the issues involved
see our site dedicated to employer liability and work injury claims in detail. It should be borne in mind
that the prohibitive cost to employers of workplace injuries means that they often go to great lengths in
order to prevent accidents.

Q5. List the advantages of collective bargaining.

Ans:-

Collective bargaining is specifically an industrial relations mechanism or tool, and is an aspect of

negotiation, applicapble to the employment relationship. As a process, the two are in essence the
same, and the principles applicable to negotiations are relevant to collective bargaining as well.
However, some differences need to be noted.
In collective bargaining the union always has a collective interest since the negotiations are for the
benefit of several employees. Where collective bargaining is not for one employer but for several,
collective interests become a feature for both parties to the bargaining process. In negotiations in non-
employment situations, collective interests are less, or non-existent, except when states negotiate with
each other. Further, in labour relations, negotiations involve the public interest such as where where
negotiations are on wages which can impact on prices. This is implicitly recognized when a party or the
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parties seek the support of the public, especially where negotiations have failed and work disruptions
follow. Governments intervene when necessary in collective bargaining because the negotiations are of
interest to those beyond the parties themselves.
In collective bargaining certain essential conditions need to be satisfied, such as the existence of the
freedom of association and a labour law system. Further, since the beneficiaries of collective bargaining
are in daily contact with each other, negotiations take place in the background of a continuing
relationship which ultimately motivates the parties to resolve the specific issues. The nature of the
relationship between the parties in collective bargaining distinguishes the negotiations from normal
commercial negotiations in which the buyer may be in a stronger position as he could take his business
elsewhere. In the employment relationship the employer.

Advantages of Collective Bargaining

First, collective bargaining has the advantage of settlement through dialogue and consensus rather
than through conflict and confrontation. It differs from arbitration where the solution is based on a
decision of a third party, while arrangements resulting from collective bargaining usually represent the
choice or compromise of the parties themselves. Arbitration may displease one party because it usually
involves a win/lose situation, and sometimes it may even displease both parties.

Second, collective bargaining agreements often institutionalize settlement through dialogue.

For instance, a collective agreement may provide for methods by which disputes between the parties
will be settled. In that event the parties know beforehand that if they are in disagreement there is an
agreed method by which such disagreement may be resolved.

Third, collective bargaining is a form of participation. Both parties participate in deciding what
proportion of the 'cake' is to be shared by the parties entitled to a share. It is a form of participation
also because it involves a sharing of rule-making power between employers and unions in areas which
in earlier times were regarded as management prerogatives, e.g. transfer, promotion, redundancy,
discipline, modernisation, production norms. However, in some countries such as Singapore and
Malaysia, transfers, promotions, retrenchments, lay-offs and work assignments are excluded by law
from the scope of collective bargaining.

Fourth, collective bargaining agreements sometimes renounce or limit the settlement of disputes
through trade union action. Such agreements have the effect of guaranteeing industrial peace for the
duration of the agreements, either generally or more usually on matters covered by the agreement.
Fifth, collective bargaining is an essential feature in the concept of social partnership towards which
labour relations should strive. Social partnership in this context may be described as a partnership
between organised employer institutions and organised labour institutions designed to maintain non-
confrontational processes in the settlement of disputes which may arise between employers and
employees.

Sixth, collective bargaining has valuable by-products relevant to the relationship between the two
parties. For instance, a long course of successful and bona fide dealings leads to the generation of
trust. It contributes towards mutual understanding by establishing a continuing relationship. The
process, once the relationship of trust and understanding has been established, creates an attitude of
attacking problems together rather than each other.

Seventh, in societies where there is a multiplicity of unions and shifting union loyalties, collective
bargaining and consequent agreements tend to stabilise union membership. For instance, where there
is a collective agreement employees are less likely to change union affiliations frequently. This is of
value also to employers who are faced with constant changes in union membership and consequent
inter-union rivalries resulting in more disputes in the workplace than otherwise.
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Eighth - perhaps most important of all - collective bargaining usually has the effect of improving
industrial relations. This improvement can be at different levels. The continuing dialogue tends to
improve relations at the workplace level between workers and the union on the one hand and the
employer on the other. It also establishes a productive relationship between the union and the
employers' organization where the latter is involved in the negotiation process.

Collective bargaining includes not only negotiations between the employers and unions but also
includes the process of resolving labor-management conflicts. Thus, collective bargaining is, essentially,
a recognized way of creating a system of industrial jurisprudence. It acts as a method of introducing
civil rights in the industry, that is, the management should be conducted by rules rather than arbitrary
decision making. It establishes rules which define and restrict the traditional authority exercised by the
management.

Importance to employees
• Collective bargaining develops a sense of self respect and responsibility among the employees.

• It increases the strength of the workforce, thereby, increasing their bargaining capacity as a
group.
• Collective bargaining increases the morale and productivity of employees.

• It restricts management’s freedom for arbitrary action against the employees. Moreover,
unilateral actions by the employer are also discouraged.

• Effective collective bargaining machinery strengthens the trade unions movement.

• The workers feel motivated as they can approach the management on various matters and
bargain for higher benefits.

• It helps in securing a prompt and fair settlement of grievances. It provides a flexible means for
the adjustment of wages and employment conditions to economic and technological changes in
the industry, as a result of which the chances for conflicts are reduced.
Importance to employers
1. It becomes easier for the management to resolve issues at the bargaining level rather than
taking up complaints of individual workers.

2. Collective bargaining tends to promote a sense of job security among employees and thereby
tends to reduce the cost of labor turnover to management.

3. Collective bargaining opens up the channel of communication between the workers and the
management and increases worker participation in decision making.

4. Collective bargaining plays a vital role in settling and preventing industrial disputes.
Importance to society
1. Collective bargaining leads to industrial peace in the country

2. It results in establishment of a harmonious industrial climate which supports which helps the
pace of a nation’s efforts towards economic and social development since the obstacles to such
a development can be reduced considerably.

3. The discrimination and exploitation of workers is constantly being checked.

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Semester: 3 - Assignment Set: 1

4. It provides a method or the regulation of the conditions of employment of those who are directly
concerned about them.

Q.6.Write a note on common applications of Human Resource Information System (HRIS) ?

Ans:-

Human Resource Information Systems is a software application that caters to the human resource
information needs of the organisation like monitoring employee attendance, payroll and benefits
administration, career development, employee information, performance management, and training.
HRIS is a collection of components which work together to gather, process and store information that
the HR department can use to make decisions, to coordinate and to plan its activities. HRIS facilitates
easy access and management of employee related information.

For example, Terasen Pipelines, a Canadian company was using a manual system to maintain its
records. But when its workforce increased, it began to use an HRIS to maintain accurate employee
records.

Initially, mainframe computers were used by organisations to manage human resource management
functions. A large amount of capital was needed to operate these systems. The advent of client-server
architectures and Software as a Service (SaaS) models has lowered the maintenance costs of HRIS.

HRIS comprises of the following modules:

Payroll: This module of HRIS keeps track of the pay grades and positions of the employees. Pay raise
details are also recorded. This module gathers information on employee time and attendance. It
calculates the deductions and taxes and generates pay slips and tax reports. Cheques get automatically
deposited in the employee bank accounts. Inputs for this module are obtained from HR and time
keeping modules. This module integrates with the current financial systems of the organisation.

Benefits Administration: This module tracks and administers employee benefits programmes. The
benefits programmes include insurance, reimbursements, profit sharing and pension programmes.

HR Management: This module covers many HR aspects which range from employee recruitment to
retirement. It records employee details like addresses, training programmes undergone, skills, position
and so on. The functions addressed by this module are recruitment, placement, evaluation and career
development of the employees. Job sites on the Internet are increasingly being used for recruitment.
This module tracks job applications. Interviews and selection details are also maintained.

Training: This module administers and tracks employee training and development programmes.
Records of employee education, qualification, and skills are maintained. It also outlines the training
courses and training materials (CDs, books, web based learning programmes) which help employees
develop their skills. Courses can be planned and scheduled using the data stored. Managers can
approve training and budgets.

Performance Appraisal: This module evaluates the job performance of employees in terms of quality,
time and cost. This helps in analysis of employee strengths and weaknesses and suitability for
promotions. It gives feedback to employees on performances and identifies employee training needs. It
also documents criteria which can be used for organisational rewards.
Sikkim Manipal University - MBA - MU0012 – Employee Relations Management

Semester: 3 - Assignment Set: 1

Work Time: This module helps to track the work done by the employees. This module merges the
functions of work management and time management across a wide range of activities that include
project, tasks, requests and deployment. This module maintains attendance and leave details of
employees which are exported in various formats for further processing.

Employee Self-Service: This module permits employees to update their personal details, query HR
databases and perform HR transactions. Employees are allowed to apply for leave, raise purchase
requests, file expenses, view their salary details and keep track of their project related activities.
Employees use this to update their tax savings details and bank related information. Table 5.1 outlines
some of the applications that are used in HRIS.

Table : HRIS Applications

In table 5.1 we have outlined some of the applications that are used in HRIS. Now let us examine the
guidelines which help in the selection of an HRIS.

Examples of Human Resource Information Systems

There are many HRIS software available in the market today. Some of them are listed below:

• · Sage Abra HRIS:

• · Oracle HRMS:
• · SAP HR:
• · Peoplesoft:
• · iVantage HRIS:
• · Kronos:

Importance of Human Resource Information Systems

Figure is a diagrammatic representation of the activities and data of a HRIS.

Sikkim Manipal University - MBA - MU0012 – Employee Relations Management

Semester: 3 - Assignment Set: 1

Figure : HRIS

You know that human resources play a very important role in all organisations. The Human Resource
department is involved in formulating the company policies and streamlining the business processes.
Efficient and new applications like HRIS make the human resource department more effective. HRIS
assists the human resource department in decision making, employee recruitment, benefits
administration, payroll, and employee training and performance analysis. HRIS simplifies the HR
processes. It organises company and employee data in a better way. By using HRIS, confidential
information can be protected. HRIS integrates the financial and the human resource aspects of a
business.

The four main functions of a HR department are payroll, time and labour management, employee
benefits and HR management. The advantages of implementing HRIS in these functions are as follows:

• Payroll: HRIS automates the entire payroll process by collecting and maintaining payroll data. It
collects information such as employee attendance, computes the deductions and taxes and
generates pay-cheques automatically and periodically.
• Time and Labour Management: HR personnel can collect and assess employee time and work
information. HRIS helps in analyses of employee performance. It helps employees to perform better
through efficient career planning.
• Employee Benefits: Employee benefits are very important because they help in motivating
employees. Employees log in to the system and find the benefits they can avail. Organisations use
HRIS to keep track of the benefits employees avail and inform employees of the advantages of
various benefit programs. The HR personnel use relevant data and statistics to compute benefits
and compensations of the employees or their dependants. Employee performances are tracked and
incentives are computed. Employees can view the details of the incentives. It helps in planning and
monitoring employee training. Costs of training are computed. For example, IBM uses a web-based
employee benefits enrolment system which enables employees to access the system and view their
benefits at any time and any place.
• HR Management: HRIS reduces the manual and paper work of the HR personnel in performing
their routine tasks. The HR personnel can thus focus on more important duties. HRIS provides data
support to HR decisions. HRIS helps in succession planning. It helps to integrate employee
performance, development and payroll modules and thus retain key employees who can ensure
organisational success. HRIS helps in career management and talent management by identifying
the skills of the employees. It helps in monitoring the productivity of employees. HRIS helps in
assessing why employees leave organisations.
Sikkim Manipal University - MBA - MU0012 – Employee Relations Management

Semester: 3 - Assignment Set: 1

Features of Human Resource Information Systems

You have seen that HRIS helps an organisation to keep track of employee related information. Let us
now examine the features of a good HRIS. The important features of an HRIS are as follows:

• Job and Pay History

• Ability to Import and Export Data
• Ad-Hoc Report Writing
• Automated Reminders and Alerts
• User-Defined Fields:.
• Attendance and Leave Tracking
• Employee Self-Service
• Benefits Administration:
• Performance Management
• Payroll
• Security:
• Document Library

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.[2] A well-developed HRIS is useful in many HR applications and
can enhance the efficiency and time-of-response of many HR activities. Some of the common
applications of HRIS are as follows:

• Planning: The HR activities implemented by this application are personnel and succession
planning, labour relation planning, target analysis and organisational charting.
• Staffing and Employment: This application handles recruitment activities. It ensures
compliance with employment equity.
• Training and Career Development: This application deals with analysing training needs,
training administration, and career planning.
• Performance Management: This application deals with performance appraisals, and
monitoring time and attendance of employees.
• Compensation and Benefits: This application deals with employee compensation and benefits
administration.