Collective bargaining Definition -is a process of negotiations between employers and a

group of employees aimed at reaching agreements that regulate working conditions. The
interests of the employees are commonly presented by representatives of a trade union to
which the employees belong. The collective agreements reached by these negotiations
usually set out wage scales, working hours, training, health and
safety, overtime, grievance mechanisms, and rights to participate in workplace or company
affairs. The union may negotiate with a single employer or may negotiate with a group of
businesses, depending on the country, to reach an industry wide agreement.
A bargaining unit in labor relations is a group of employees with a clear and identifiable
community of interests who are (under U.S. law) represented by a single labor
union in collective bargaining and other dealings with management. Examples would be
"non-management professors"; "law enforcement professionals"; "blue-collar workers";
"clerical and administrative employees"; etc. Geographic location as well as the number of
facilities included in bargaining units can be at issue during representation cases
1. How collective bargaining is beneficial to employers and employees.
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
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 managements 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 nations efforts towards economic and social
development since the obstacles to such a developme can be reduced
considerably.
3. The discrimination and exploitation of workers is constantly being checked.
4. It provides a method or the regulation of the conditions of employment of those
who are directly concerned about them.
Bargaining Agent the employees in a bargaining unit or group; also
called bargaining representative. In order for a bargaining agent to be certified, it
must receive a majority of the ballots cast in the bargaining unit.
COLLECTIVE BARGAINING ISSUES
Labor unions were formed to help workers achieve common goals in the areas of
wages, hours, working conditions, and job security. These issues still are the focus of
the collective bargaining process, though some new concepts have become the
subjects of negotiations. Table 1 lists the issues most often negotiated in union
contracts

THE SETTLEMENT PROCESS
Union contracts are usually bargained to remain in effect for two to three years but may
cover longer or shorter periods of time. The process of negotiating a union contract,
however, may take an extended period of time. Once the management and union members
of the negotiating team come to agreement on the terms of the contract, the union
members must accept or reject the agreement by a majority vote. If the agreement is
accepted, the contract is ratified and becomes a legally binding agreement remaining in
effect for the specified period of time.
If the union membership rejects the terms of the agreement, the negotiating teams from
labor and management return to the bargaining table and continue to negotiate. This cycle
can be repeated several times. If no agreement can be reached between the two teams,
negotiations are said to have "broken down," and several options become available.
Mediation is usually the first alternative when negotiations are at a stalemate. The
two parties agree voluntarily to have an impartial third party listen to the proposals
of both sides. It is the mediator's job to get the two sides to agree to a settlement.
Once the mediator understands where each side stands, he or she makes

breakdown of Collective Bargaining
Impasse
Collective bargaining situation that occurs when the parties are not able to move further
toward settlement usually because one party is demanding more than the other will offer.
Mediation
Intervention in which a neutral third party tries to assist the principals in reaching
agreement
Fact finder
A neutral party who studies the issues in a dispute and makes a public recommendation for
reasonable settlement
Arbitration
The most definitive type of third party intervention in which the power to determine and
dictate the settlement terms:
In collective bargaining an impasse occurs when the parities are not able to move further
toward settlement. An impasse usually occurs because one party is demanding more than
the other will offer. Sometimes an impasse can be resolved through a third party is a
disinterested person such as a mediator or arbitrator. I impasse is not resolved in this way
the union may call a work stoppage or strike to put pressure in management.
Third party involvement
Negotiators use three types of third party interventions to overcome an impasse mediation
fact finding and arbitration with mediation a neutral third party tries to assist the principals
in reaching agreement. The mediator usually holds meetings with each party to determine
where each stands regarding its position, and then uses this information to find common
ground for further bargaining. The mediator is always a go between and does not have the
authority to dictate terms or make concessions. He or she communicates assessments of
the likelihood of a strike, the possible settlement packages available and the like.
In certain situations as in a national emergency dispute a fact finder may be appointed. A
fact finder is a neutral party who studies the issues in a dispute and makes a public
recommendation for reasonable settlement. Presidential emergency fact finding boards have
successfully resolved impasse in certain critical transportation disputes.
Arbitration is the most definitive type of third party intervention, because the arbitrator
often has the power to determine and dictate the settlement terms. Unlike mediation and
fact finding arbitration can guarantees to an impasse. With binding arbitration both the
parties are committed to accepting the arbitrators award. With nonbinding arbitration they
are not. Arbitration may also be voluntary or compulsory (In other words, imposed by a
government agency) In the United States voluntary binding arbitration is the most
prevalent.
There are two main topics of arbitration. Interest arbitration always centers on working out
a labor agreement; the parties use it when such agreements do not yet exist or when one
or both parties are seeking to change the agreement. Rights arbitration really means
contract interpretation arbitration. It usually involves interpreting existing contract terms for
instance when an employees questions the employers right to have taken some disciplinary
action.
How to Calculate Employee Bonuses
Bonuses are extra pay above and beyond the set pay rate.
Bonuses are extra pay provided to employees above and beyond their regular salary, hourly
wages, or commissions. Used correctly, bonuses can improve employee performance and
loyalty. Set too low, employee bonuses become demoralizing or devalued. Employee
bonuses can be calculated based on an even distribution to all employees, a reward to star
performers, or be given as a percentage of each employee's salary.
1. Calculation
1. Determine how bonuses are to be decided. Bonuses can be based on a percentage of the
employee's salary, sales generated, or as a reward to stellar employees.
2. Create a list of all employees who are eligible for bonuses or are named by management
as deserving of bonuses. If bonuses are to be based on their current salary, include the
salary of each nominated employee.
3. Review the company budget to determine how much money is available for employee
bonuses. Determine the employee bonus budget upon which individual employee
bonuses will be calculated.
4. Divide the budgeted amount for bonuses among the employees. If an equal amount is to
be given to each employee, divide the bonus budget by the number of employees
eligible or nominated. If bonuses are to be based as a percentage of each employee's
salary, first total the salaries of the nominated employees. Then divide the bonus budget
by the salary total. This provides a percentage to apply to each employee's salary to
provide bonuses to each with an equal weight to their individual salaries.
5. List the bonus amount to be given to each employee, whether it is a lump sum equally
divided among employees or set as a percentage of each employee's pay. Provide this
list to the payroll department so that the calculated employee bonuses can be paid to
each eligible individual.


Bonus to be paid under Payment of Bonus Act,1965 is to be calculated as under :

1. It depends upon the percentage on which your company wants to give bonus to its
employees. Minimum bonus is 8.33% of basic salary earned during the accounting year and
Maximum is 20% under the payment of Bonus Act,1965.

2. Eligibility : Bonus under Payment of Bonus Act,1965 is required to be to employees
whose salary ( Basic) is of less than Rs.10000.00 per month during the accounting year for
which bonus is to be paid.

3. Bonus is to be calculated for eligible employees assuming salary ( Basic) as Rs.3500.00
per month or less, if, it is less then Rs.3500.00

4.Multiply the yearly sum of salary thus worked out as per above clause 3 with rate of
bonus. The figure is bonus payable to employee under the act.

5.Payment is to be made on Register prescribed under the act.

6. Return of payment of bonus is to be submitted with ALC or other designated authority
under the act , within 30 days of payment of bonus to employees
Principles of Collective Bargaining
As mentioned before that the collective bargaining has succeeded in introducing industrial
democracy in industrial and labour managements. Industrial democracy implies that the
majority union should have the right to sole representation i.e. the right to speak and act
for all workers and to enter into agreements with the employer. There are certain principles
which have to be followed by both the management and workers for collective bargaining.
These principles are as follows:
1. There should be a realization on the part of both unions and managements that for
taking wiser an more expedient decisions, collective bargaining is a proper method.

2. An opportunity should be provided to trade union leaders for putting their
complaints, demands, needs, etc. before the managements and the management
should explain to them the circumstances and make efforts to redress the
grievances/complaints of the workers.

3. The presence of genuine spirit of mutual trust, goodwill and bargaining should be
there on the part of both the parties;

4. Competence for bargaining with mutual respect and implementation of the
agreement arrive at should be possessed by both the parties.

5. The parties to collective bargaining should be honest and the agreement should be
conducted by these honest, competent and reasonable leaders;

6. Keeping in view the changing circumstances, it is desirable that the management
should change their policies and should keep in view the dignity of the workers.
Appropriate labour policy should be adopted by the management and this policy to
be followed by all employees. Necessary precautions must be taken.

7. If there are more than one union the management should enter into negotiation with
union having majority representation.

8. It is equally desirable on the part of the union to raise reasonable demands. They
should not put up such demands as are beyond the paying capacity of the
establishment or may be against the national policies.

Scope of Collective Bargaining issues like leave with pay, regulation of forced leave,
pension, seniority promotions, sickness and maternity benefits, etc
Industrial relation with non unionized workers.
Clearly, the decline in union coverage and influence has coincided with a commensurate rise
in non-unionism. A non-union workplace is identified by the absence of union membership,
recognition and representation, but such workplaces can fall into a number of distinct
categories. First, union presence can be limited through the use of paternalistic or
sophisticated HRM practices which substitute for the need for trade union protection
(rather than replacing or seeking to replicate the activities of trade unions themselves)
through welfare policies, informal or formal channels of communication and (often) good
terms and conditions of employment. Paternalism is typical of smaller family firms whereas
sophisticated HRM substitutes are more common in larger excellent employers who are
better able to offer superior terms and conditions of employment. In both cases the effect is
that unions are viewed as unnecessary because positive employer practices lessen the
causes of unionism, such as worker dissatisfaction (Fiorito, 2001). However, whilst the
introduction of particular HRM practices can be an attempt to marginalise unions union
substitution is not necessarily always part of a purposefully anti-union strategy.
Non-unionism can also be found in anti-union firms where suppression tends to be the
main mechanism for avoidance This approach tends to be characteristic of firms who
compete on cost, and where poor employee relations are reflected in high staff turnover and
de-skilled or low-skill employment. Dundon and Gollan note, however, that substitution and
suppression are not mutually exclusive approaches and can overlap and co-exist, even
within the same firm. A case study of anti-union activity is provided at the end of this
chapter.As discussed above, non-unionism is more prevalent in some sectors of the
economy than others. Unions continue to be a powerful presence in the public sector and
parts of the manufacturing sector .





























HUMAN RESOURCE PLANNING

Human Resource Planning
Predetermining HR needs in terms of quality & quantity
Estimating the size & composition of future workforce
Due to the dynamic nature of environment technological change, globalization, change in nature of
job, OD, shortage & requirement of critical skills led to importance of HRP
HRP is the process of determining an organizations HR needs - Decenzo &Robbins

Human Resource Information System
HRIS is a device for providing skill inventory information
Computer based data system for systematically track most of the information about employee and
jobs
Collect, analyze, store, retrieve & disseminate information about employees &job
Useful for storing employment, training and compensation information on each employee

Contents of HRIS
a) Personal data- name, address, dob, marital status
b) Skill data- qualification, training, special skills, capabalities, language spoken etc
c) Position data- current position, duties, responsibilities, occupational history, jobs held in other
organizations, work locations etc.
d) Compensation data- current salary, salary history, bonus, overtime payments, deduction from salary,
tax information,award received etc.
e) Performance data- current & past performance appraisal data

Uses of HRIS
Human resource inventory development
Human resource forecast
Human resource development
Job analysis
To make succession and replacement planning
To determine current & probable productivity of employee
Establish link between corporate objectives & strategies, corporate planning & HR planning

Human Resource Inventory
Skill inventory of HR currently employed in the organization
It includes names,education, training, salary level, languages spoken, capabalities & specialized skills
of all employees
From HRP viewpoint,
What skills are currently available in the organization
Can take advantage of opportunities to expand or alter the organizations strategies
Useful in- training need assessment, promotion & transfer
To identify current or future threats to organizations ability to perform
Staff turnover rate, sickness & absenteeism rate,etc.

HRP Process
Assessing current human resources
- Human resource inventory, HRIS, Job analysis
2. Forecasting HR demand- external environmental forces, organizatinal objectives, business plan,
succession plan, workforce factors such as:- work load norms, employee reallocation, seperation,
turnover, contingent workforce
- Management judgement, expert forecasts, statistical analysis may be used to forecast demand
3. Forecasting HR supply
- Internal sources forecasts: potential additions & losses to HR inventory,
- External sources forecast- education & training institute, labour market etc
4. Matching demand and supply forecast- shortage & surplus
5. Preparation of action plan
- Recruitment action plan
- Development action plan
- Retention action plan
- Redeployment action plan
- Redundancy action plan
- Promotion & succession action plan


Data gathering, analysis;-
In this step, the data which is collected is arranged according to some pattern or a particular format and
this analysation of the data is mainly done to provide the data with a meaning.
In the beginning the data is raw in nature but after it is arranged in a certain format or a meaningful order
this raw data takes the form of the information. The most critical and essential supporting pillars of the
research are the analysation and the interpretation of the data.
Both these aspects of the research methodology are very sensitive in nature and hence it is required that
both these concepts are conducted by the researcher himself or under his very careful and planned
supervision. With the help of the interpretation step one is able to achieve a conclusion from the set of the
gathered data.
Analysis of the data can be best explained as computing some of the measures supported by the search for
relationship patterns, existing among the group of the data.
Research depends a great deal on the collected data but it should be seen that this collected data is not just
a collection of the data but should also provide good information to the researcher during the various
research operations. Hence to make data good and meaningful in nature and working, data analysis plays a
very vital and conclusive role. In this step data is made meaningful with the help of certain statistical tools
which ultimately make data self explanatory in nature.
According to Willinson and Bhandarkar, analysis of data involves a large number of operations that are very
closely related to each other and these operations are carried out with the aim of summarizing the data that
has been collected and then organizing this summarized data in a way that helps in getting the answers to
the various questions or may suggest hypothesis.
Purpose of Analysis of data
The purpose of the scientific analysis was first explained by Leon Festinger and Daniel Katz and according to
both of them; the purpose of the analysis of the data can be explained as follows
1. Should be very productive in nature, with high significance for some systematic theory.
2. Should be readily disposed to the quantitative treatment.
Procedure for the Analysis of the data
Data collected can be used in the best possible effective manner by performing the following activities
1. Carefully reviewing all the data collection.
2. Analyzing the data then with the help of certain suitable techniques.
3. Results obtained from the analysation of the data should then be related to the studys hypothesis.
Analysation Steps
The various steps of the analysation of the data were given by Herbert Hyman and can be summarized as
follows
1. Tabulation of the data after conceptualization, relating to every concept of the procedure is done which
ultimately provides an explanation based on the quantitative basis.
2. Tabulation in the same way is carried out for every sub group, which gives quantitative description.
3. To get statistical descriptions consolidating data for different aspects is brought into use.
4. Examination of such data is then done, which helps in improving the evaluation of the findings.
5. Different qualitative and non statistical methods are brought into the use for obtaining quantitative
description but only if it is needed.
Types of Analysis
1. Descriptive Analysis
Also referred to as the One Dimensional Analysis.
Mainly involves the study of the distribution of one variable.
Depicts the benchmark data.
Helps in the measurement of the condition at a particular time.
Acts as the prelude to the bi variate and multivariate analysis.
Such an analysis may be based on the one variable, two variables or more than two variables.
Helps in getting the profiles of the various companies, persons, work groups etc.
2. Casual analysis
Also referred to as the Regression Analysis.
Has their root in the study of how one or more variables affect the changes in the other variable.
Explains the functional relationship between two or more variables.
Helps in experimental research work.
Explains the affect of one variable on the other.
Involve the use of the statistical tools.
3. Co Relative Analysis
Involves two or more variables.
Helps in knowing correlation between these two or more variables.
Offers better control and understanding of the relationships between the variables.
4. Inferential Analysis
Involves tests of significance for the testing of the hypothesis.
Helps in the estimation of the population values.
Helps in the determination of the validity data which can further lead to draw some conclusion.
Takes an active part in the interpretation of the data.