DEFINITION

The planning, organizing, directing and controlling of

the procurement, development, compensation,
integration, maintenance and reproduction of human
resources, to the end that the individual,
organizational and societal objectives are established.
SCOPE
HRP
Job analysis and design
Recruitment and selection
Orientation and placement
Training and development
Performance appraisal and job evaluation
Employee and executive remuneration

Motivation
Communication
Human welfare
Health and safety
Industrial Relations

FUNCTIONS OF HRM
1. Managerial functions
2. Operative functions

1. Managerial functions:
a) planning d) co-ordinating
e) Controlling
b) organizing
c) directing


2. Operative Functions
Procurement
Training and development
Compensation (monetary and non-monetary)
Integration
Maintenance
Welfare activities (medical, recreation, cafeteria, rest
room, insurance, counselling etc.)
Personnel records
Promotion, transfer and termination
Negotiation with trade unions
Miscellaneous functions

Role, Power and Responsibilities of
HR Manager
As a specialist
As an information source
Personnel record keeper
As an innovator
As a controller
As a liaison officer (connection link between different
departments)
As a guardian
As a troubleshooter
Power and Responsibilities
Formulation and development of personnel policies.
Employee training and development
Transfer, promotion etc.
Personnel records
Establishment of good relation with employees
Effective communicator
Advisor to line managers
Comply with laws
Welfare activities
Solving the problem of employees

Qualities of HR Manager
Sense of social responsibility
Leadership and Organizational skills
Ability to deal with people
Personnel integrity
Tact and resourcefulness
Inner urge
Free from bias
Sympathy and consideration
Communication skills
Personality traits:
a. Fluency in speech
b. Facial expression
c. Courtesy
d. Personal knowledge
e. Knowledge of labour and other terms
f. Academic qualifications
Human Resource Planning (HRP)
It is the process of analyzing and identifying the need
for and availability of human resource, so that the
organization can meet its objectives (performed by HR
managers, line managers).
Objectives of HRP
To recruit and retain the HR of required quantity and
quality
Minimizing employee turnover and make arrangements to
fill the vacancies
To meet the needs of future expansion programmes
To meet the requirement of technological changes
To improve the standards, skills, knowledge, ability,
discipline etc.
To assess the surplus or shortages of human resources and
take measures accordingly.
To make the best uses of human resources
To estimate the cost of human resources

Phases of HRP
Situational analysis or environmental scanning
Forecasting HR demand (assessing future HR needs-
what will we need?)
HR supply analysis(assessment of current HR)
Action planning or programme of action to fulfill
future HR needs
HR Demand Forecast
Demand forecasting is the process of estimating the
future quantity and quality of people required to meet
future needs of the organization

Factors under DF
External:
1. Competition (foreign and domestic)
2. Economic climate
3. Laws and regulatory bodies
4. Changes in technology
5. Social factors
Internal:
Budget constraints, production level, new Product and
services, organizational structure and employee
separation.

Qualitative Methods

Delphi technique-forecast by assessing a pre-selected
group of individuals.
DF
Qualitative Methods
Quantitative Methods

Quantitative Methods

Trend analysis:
a) Select a business factor that best predicts HR needs.
b) Plot the business factor in relation to the number of
employees to determine the labour productivity ratio
c) Compute the productivity ratio for the past 5 years
d) Calculate HR demand by multiplying the business
factor by the productivity ratio
e) Project HR demand out to the target years
Techniques of DF
Managerial Judgment
Ratio trend analysis
Regression analysis
Work-study technique
Delphi technique
Flow models
Nominal group technique

Managerial Judgment

Decision by managers.
1. Bottom up approach(line managers to top managers)
2. To down approach(top managers to departmental
heads)

Ratio trend analysis

It involves studying past ratios and forecasting future
ratios.
Regression analysis
Draw a diagram showing sales work force relationship
Calculate regression line-a line that cuts rate through
the center of the points on the diagram.
By observing regression line, we can find out the
number of employees required at each volume of sales.

Work-study technique

In this method we calculate the length of operation
and amount of labour required by applying work
measurement.

Delphi technique

Here, the forecast is done by the help of experts,
especially managers, with great experience in the field.
Their opinion is surveyed and feedback is given to
them. Again, continues the process until the expert
opinions begins to agree.

Nominal group technique

It is similar to delphi technique. Here, experts join at a
conference table and independently list their ideas in
writing. Then, they share the ideas within the group.
The ideas are discussed and ranked by member vote.

Mathematical Model
Markov Model: It uses historical information to carry
out forecast. Here, an estimate is made of the
likelihood that persons in a particular job will remain
in the job or to be transferred, promoted, demoted,
terminated or retired using data collected over a
number of years.
Quantitative methods of
forecasting HR demand
Moving average
Exponential smoothing
Trend projections
Regression
Linear programming
Acturial models
Simulation
Probability matrix
First order markov model
Qualitative methods of forecasting
HR demand
Delphi technique
Nominal group technique
Semi-markov model
Action plans-labour supply exceeds
labour demand
Pay cuts
Reduced work hours
Voluntary early retirement
Layoff
Work sharing
Labour demand exceeds labour
supply
Training and retaining
Succession planning
Promotion from within recruitment and selection
within
Sub-contracting
Part timers
Temporary workers
Overtime
Labour demand equals supply
Replacement of quits from inside or outside
Internal transfer and redeployment

Job Analysis
Process of collecting information about the job.

Job Analysis Process
1. Collecting of actual information:
Job information
Quality of personnel
Skills needed to perform the job
Experience
Professional
Personality factors
Muscular energy

2. Preparation of job description
3. Preparation of job specification
4. Report preparation
5. Approval of the report

Methods used in Job Analysis
Questionnaire
Check-list
Interview
Observation
Participation
Technical conference
Diary
Records

Job Description
The first and immediate product of the job analysis is
job description.
Contents of Job Description
Job location
Name of the job
Summary of the job
Duties and responsibilities
Degree of supervision
Details of equipment, material and tools used
Relation with other jobs
A brief description of the overall purpose of the job
Special qualification of the job, mental, physical
experience, physical conditions(heat, light, noise levels)
Job Specification
A job specification is a statement of minimum
acceptable human qualities necessary to perform a job
properly.

Contents of Job Specification
Physical characteristics
Psychological features
Personal characteristics
Responsibility
Qualification and experience

Job Design
The process of designing the job
Method of Job Design
Job Rotation(shifting)
Job Simplification(sharing)
Job Enlargement(overtime)
Job Enrichment(freedom)
Recruitment
It is the process of searching for prospective employees
and stimulating them to apply for job in the
organization.

Factors influencing Recruitment
Internal
External
Internal Factors
Recruitment policy
HRP
Size of the firm
Cost of recruiting
Growth and expansion
External Factors
Supply and demand
Unemployment rate
Labour market
Political, legal factors
Sons of soil
Companys image
Recruitment Process
Recruitment Planning
Developing of strategy
Searching
Screening
Evaluating the effectiveness of recruitment process
Sources of Recruitment
Internal
External
Internal
Transfer
Promotion
Present employees
Demotions

External
Notice at factory gate
Unsolicited applications
Casual callers
Advertisement
Employment exchange
Educational institutions
Labour contractors
Private agencies
Trade unions
Recommendation of existing employees
Leasing
Selection
The process of choosing the most suitable persons
from all the applicants. Selection process starts
immediate after recruitment. Selection is a decision-
making process in which management prepares
certain norms and procedures.
Steps in Selection Procedure
Receipt and Scruting of applications
Preliminary interview
Blank application form(Bio-Data, educational
qualifications, extra-curricular activities, work
experience, expected salary, references)
Tests(intelligence tests: IQ,EQ,SQ),(trade tests,
aptitude tests, personality tests)
Interviews
Checking references
Approval of the supervisor
Medical examination
Final selection
Placement
Induction & Orientation


Interview
Interview is a powerful exchange of ideas, the
answering of questions, and communicating between
two or more persons.

Type of Employment Interviews
Formal Interview
Informal Interview
Patternal Interview
Non-directive Interview
Depth Interview
Stress Interview
Group Interview
Board Interview
Walk-in Interview
Campus Interview
Exist Interview
Placement
It means the determination of the job to which an
accepted candidate is to be assigned to that job.
Induction or Orientation
The process through which a new recruit is introduced
to the job and the organization. Induction removes
fears from the mind of a new comer, create a new
impression about the organization and act as a
valuable source of information
Steps in Induction
Welcome to the organization
Explain about the company and show all facilities
Show the location where the new recruit will work
Give the companys manual
Other details about various work groups
Provide details about policies, rules, regulations,
benefits etc.
Explain about opportunities and career prospects
Clarify doubts
Assign the new recruit to the supervisor

Training

It is the act of increasing the knowledge and skill of an
employee for doing a particular job.
Need for Training
Newly appointed persons
Existing experienced employees
Technological changes
Environmental changes
Internal mobility
Problems related with production

Types of Training
Orientation Training
Job Training
Craft Training
Safety Training
Promotional Training
Refresher Training
Remedial Training
Methods of Training
1. On the Job Training
2. Off the job Training
Special courses
Conferences
Case study
Seminars
Role playing
Sensitivity Training
Lectures
Audio-visuals
Simulation
Laboratory Training

3. Apprentice Training
4. Class room Training
5. Learner Training
6. Internship Training
7. Computer Based Training


Training Process
1. Assessment of training needs:
Organizational Analysis
Operational Analysis
Man Analysis
2. Training and Development Objectives
3. Designing Training Policy
4. Designing Training Programme
5. Fixing the responsibility of training
6. Selection of trainees
7. Preparation of training:
Preparation of trainer
Preparation of trainees
Selection of training methods
Designing the training course
8. Rules for conducting training:
Time-table, Personal attention, Work, Timing,
Employment
9. Presentation
10. Examination of the performance
11. Follow-up


HRD
It is a continuous process
It is a planned and systematic approach to the
development of people
It has both micro and macro aspects. At the micro
level, HRD is related with improving the skills,
attitudes and behaviour of employees. At the macro
level, HRD involves improving the quality of people in
country.
New HRD Strategies
Mentoring
Total Quality Management
Employee Stock Option Plan(ESOP)
Kaizen
Emotional Quotient

Mentoring
It is a process whereby a senior manager act as a friend,
philosopher and guide to a new employee.
a) Meeting
b) Progression
c) Assimilation
d) Integration
TQM
It is a continuous process of improvement in all
aspects of an organization.

Features of TQM
Customer Delight
Encourage employees
Continuous process
Management By Fact
Team work
Kaizen(Japanese word)
Means Continuous improvement
Involvement of everybody in the organization so as to
generate value for customers.
Career Planning
Refers to the systematic process by which a person
selects career goals and the path to achieve these goals.
From the organization view point, it means helping
the employees to plan their career in terms of their
capacities within the context of organizational needs.
Objectives of Career Planning
Optimum utilization of human resources by allowing
them to grow to their full potential.
Attract and retain talented employees in the
organization.
To find out careers suitable to persons considering
their knowledge, ability, desire and aspirations.
Providing guidance and encouragement to employees
to choose right careers
Right career planning leads to the placement of right
person in right job.
To place efficient employees in positions and thereby
increasing efficiency and productivity in all operations
of the organization.
To maintain a stable work force by reducing labour
turnover and absenteeism.
To achieve an overall improvement in the morale and
motivation of employees by providing right jobs to
them.
Organizations Career Planning
Process
Assessment of employees
Analyzing career options
Feedback meeting with each employee
Formulating and implementing strategies
Measuring and monitoring progress and success

Advantages of Career Planning
Helps employees to know various career opportunities
available in an organization.
Makes employees confident and responsible.
Provide higher opportunities for the employees.
Decreases labour turnover and absenteeism.
The whole productivity of the organization increases
as assignments are strictly made on the basis of ability
and interest.
More communication between employee and manager.
Helps the organization to attract the best employees.
It helps in organization to build up better reputation
and image in the labour market.
It will be able to place right employee at right place.
Employees may work hard to materialize their dreams
and aspirations and it will benefit the organization.
Career Development
The process where employees strategically explore,
explain, and create their future at work by designing a
personal learning plan to achieve their potential and
fulfill the organizations need for a vital and effective
work force. It involves continuous learning.
Career Development Philosophy
Self Assessment
Career Planning
Job search resources



Performance Management
Key Components of Performance
Management
Goal setting
Coaching and informal feedback
Performance evaluation
Performance based rewards
Appeal mechanism

Performance Management
Process through which manager seek to achieve
maximum employee performance that is consistent
with the organizations goals.

Performance Appraisal
Process through which an organization gets
information about how well an employee is doing his
or her jobs; also called performance evaluation.
Describe the job relevant strength and weakness of
each individual.
Performance Feedback
Process of providing employees information about
how well they are doing their job.
Performance Standard
Translate job requirement into levels of acceptable or
unacceptable performance.
Objective of Performance
Appraisal
To effect promotions based on competence and
performance.
To confirm the service of probationary employees
upon their completing the probationary period
satisfactorily.
To assess the training and development needs of
employees.
To decide upon a pay raise where regular pay scales
have not been fixed.
To let the employees know about their correct position
and to assist them with constructive criticism and
guidance for the purpose of their development.
To improve communication.
Broadly performance appraisal serves 4 objectives:
1. Development uses
2. Administrative uses or decision
3. Organizational maintenance or objectives and
4. Documentation purposes
Performance Appraisal Methods
Past oriented Methods
Future oriented Methods
Past oriented Methods
Rating scale
Check-list
Forced choice method
Forced distribution method
Critical incident method
Behaviorally anchored scale
Field review method
Performance test and observations
Annual confidential reports
Essay methods
Cost accounting approach
Comparative evaluation approach
Future Oriented Tests
Management By Objectives(MBO)
360-degree appraisal
Psychological appraisal
Assessment centres






360-degree appraisal

It involves the appraisee from people whose reviews
are considered helpful and relevant. This feedback is
typically provided on a form showing job skills or
abilities or attitudinal or behavioral criteria and some
sort of scoring or value judgement system. The
appraisee should also assess himself or herself using
the same feedback, information or form. 360-degree
response can be the appraisees peers, up line
managers or executives, subordinate staff, team
member, other staff, customer, supplier, anyone who
comes into contact with the appraisee and has
opinions or views or reactions or and to the appraisee.
HRA
It is the process of identifying and measuring data
about human resources and communicating this
information to interested parties. HRA, thus, not only
involves measurement of all the costs or investment
associated with the recruitment, placement, training
and development of employees, but also the
quantification of the economic value of the people in
an organization.
HR Audit
It is a systematic, formal process, which is designed to
examine the strategies, policies , procedures,
documentation, structure, systems and practices with
respect to the organizations human resource
management. It systematically and scientifically
assess the strengths, limitations and developmental
needs of the existing human resources from the larger
point of view of enhancing organizational
performance.
Human Resource Information
Systems(HRIS)
An information system especially developed for HRM
is referred to as HRIS. HRIS is a key management tool
which collects, maintains, analyzes and reports
information on people and jobs.
Compensation
It is a comprehensive term which includes salary,
wages, all other allowances and benefits. Employee
compensation refers to wide range of monetary and
non-monetary rewards to employees for their services
rendered to the organization.
We can classify employees compensation into 2
categories:
Base or primary compensation
Supplementary compensation
Nature of Compensation
Intrinsic (intangible, psychological and social effect of
compensation)
Extrinsic (tangible, monetary and non-monetary
effects of compensation)
Direct/Indirect Compensation
Direct Compensation:
Basic Pay (wages, salaries), Variable pay (bonuses,
incentives, stock options)
Indirect Compensation:
Benefits (Medical or life insurance, Paid time off,
retirement pensions, workers compensation, etc.)
Components of Compensation
Package
Fringe Benefits
Incentives
Retirement Plans
Salary & Wage Administration
Wages or salary administration refers to the administration
of employee compensation or simply compensation
management. It consists of formulation and
implementation of policies and programmes related to
wages, salaries and other forms of employees
compensation. It includes the following:
a) Job Evaluation
b) Wages/salaries survey
c) Development and maintenance of wage structure, rules
for administration of wages, profit sharing and other
incentives.
d) Control of payroll costs.
Objectives Of Wage and Salary
Administration
To establish just and equitable remuneration
To attract competent employees
To retain the services of the desirable employees
To improve productivity
Help to control costs
To maintain good relationships
Creation of public image
Lower cost of production
To guarantee minimum wages
Essential Features of a Good Wage
and Salary structure
Internal Equity
External Equity
Maintain real wages
Flexibility
Link with productivity
Motivation
Stability
Result-oriented
Simplicity

Factors influencing wage rates
Ability to pay
Demand and supply
Cost of living
Wage paid by other firm
Labour productivity
Bargaining power
Govt. policy
Job requirements

Process of Wage Determination
Job Analysis
Job Design
Wage Survey
Pricing Job Structure
Developing wage structure
a) Wage related legislation
b) Existing wage rates
c) Trade union demands
d) Labour supply and demand condition
e) Ability to pay
f) Productivity
g) Cost of living
h) Labour cost
Method of wage payment
Wage administration rule
Evaluation of wage and salary administration
Components of Pay Structure in
India
Basic wage/salary
D.A.
Annual statutory bonus
Incentive bonus
Fringe benefits/perquisites


Basic Wages
Basic wage is the price paid to employees for the
service rendered by them.
a) Minimum wage (it is the minimum payment to a
worker, which is just sufficient to cover the basic
needs or basic necessities of a worker and his family
and to maintain his working power.
b) Fair wages (these wages are above minimum wages
but below living wages)
c) Living wages (living wage is the highest among the 3
wages. Living wage is a wage sufficient to ensure the
workmen food, shelter, clothing, frugal comfort etc.
Dearness Allowance (D.A.)
This allowance is given to protect the real wage of
workers during inflation. It is paid mainly to offset the
rise in prices.

Pre-requisites of Sound Incentive
Plan or Scheme
Proper Climate
Co-operation of workers
Workers participation
Scientific standards
Simplicity
Equitable
Flexible
Less costly
Wide coverage
Careful Planning
Guarantee minimum wages
Sufficient amount of incentives
Ceiling on earnings
Grievance settlement
Timely payment
Review rates
Follow-up
Types of Incentive Schemes
Individual Incentive Schemes
Group Incentive Schemes


Individual Incentive Schemes

Time based(Halsey plan, Rowan plan, Emerson plan,
Bedeoux plan)
Production based ( Taylors, Gnatts task system,
Merrick system)
Group Incentive System
Priestman Plan
Sealon Plan
Co-partnership
Profit Sharing
Fringe Benefit
Wages are often augmented by special cash benefits,
by the provision of medical and other services or by
payments in kind that form part of the wages for
expenditure on the goods and services. In addition,
workers commonly receive such benefits as holidays
with pay, low cost meals, low rent housing etc. Such
additions to the wage is referred to as fringe benefits.
Benefits that have no relation to employment or wages
should not be regarded as fringe benefits even though
they may constitute a significant part of the workers
total income.
Objectives Of Fringe Benefits
To retain and recruit good and efficient employees
To give protection to employees against certain hazards like
death, old age etc.
To satisfy the demand of the trade unions
To improve motivation
To attain good industrial relations
To create a good work environment
To ensure good standard of living
To meet satisfactory requirements
To inculcate a sense of belonging to employees
To create a better image about the company among public
Types of Fringe Benefits
Retirement Benefits such as pension, gratuity etc.
Quarters, subsidized lunch, transport etc.
Health and safety benefits
Payment for sick leave, maternity leave, vacation pay
etc.
Educational and recreation facilities
Interest free loans

Steps involved in Career
Development System
Needs (defining the present system)
Vision (determining new directions and possibilities)
Action plans (deciding on practical first step)
Result (maintaining the change)
Succession Planning
Succession may be from internal employees, external
people. Succession from internal employees is
advantageous to the organization as well as to the
internal employees. Organization can buy the
employees loyalty and commitment, belongingness,
shared feelings or development among with the
organization by promoting the internal employees.
Industrial Relations
Relationship that emerges out of day-to-day working
and association of labour management. It includes the
relationship between an employee and an employer in
the course of running of an industry.
It is a set of functional independence involving
economic, social, psychological, demographic,
technological, occupational, political and legal
variables.
Characteristics of IR
It is the outcome of the employment relationship in the
industry
It includes individual relations and collective relations
Individual relations arise in between employer and
employees
Collective relation implies the relation between employers
association and trade unions
The main objective of IR is to maintain harmonious
relation between management and labour.
There are a number of parties related with IR such as
employees, employees union, employers, employers
associations and the government.
Objectives of IR
To develop and maintain a harmonious relation
between employers and employees of the organization
To avoid all types of industrial disputes so as to ensure
industrial peace
To safeguard the interests of the employees of the
organization
To establish and maintain industrial democracy
To enhance productivity of the organization
To ensure a healthy and balanced social order through
recognition of human rights in industry
To help in the economic progress of the nation
To encourage collective bargaining as a means of self-
regulation.
To boost the discipline and morale or workers.
Importance of IR
Efficiency in Production
High productivity
Development of change oriented culture
Competition
Benefit sharing
Settlement of disputes
Social justice
Industrial peace
Industrial democracy
Improved productivity
Benefit to workers
Reasons for Poor IR
Economic Reason
Organizational Reason
Social Reason
Political Reason
Psychological Reason

Suggestions to Create Good IR
Support to top management
Clear-cut policies and procedures
Constructive attitudes
Training in IR
Participative Management
Good and prompt communication system
Welfare of the employees
Grievance procedure
Follow-up
IR :Major Influences

Industrial Relations
Employer
Employees(
Employers
Associations(CII,
NASSCOM, FICCI,
ASSOCHAM,FASSI)
Trade Unions
(Bargaining advantage,
Improved Terms And conditions ,
Marxism degree of security, Improved
status, decision making increase by
Power sharing
national corporate and plant level)
Government Rules,
Awards, Policies
Usages, Customes ,
traditions within
a country
Factors Influencing IR
Institutional Factors: These factors include Government
policy ,labour legislation ,voluntary courts , collective
agreements ,employee and employer organizations ,social
institution like community ,caste , joint family ,creed
,systems of beliefs ,attitude of workers , system power,
rationalization .
Economic Factors: These factors include economic
organizations ,the structure of the labour force ,demand
and supply of the labour force.
Technological Factors: Automation ,computerisation.
Approaches to IR
Unitary Approach
Pluralistic approach
Marxist Approach

Unitary Approach

IR is grounded in mutual co-opration, individual
treatment, and shared goals.
Problems are occurred because of mismanagement or
poor management.
Strikes and Lockouts are not only unnecessary but
they are destructive
Every one will be benefited from common interest and
promotion of harmony
Direct negotiations with employees- govt tribunals
and unions are avoided.
Pluralistic approach

Started in mid 60s and 70s
Organization is coalition of competing interest
Trade unions are representatives of employees interest
Stability In IR is a product of concessions and
compromise bw mgt and unions.
Conflict are inevitable.
It is essential for innovation and growth
Strong union is not only desirable bt necessary.
This approach is an social mechanism of collective
bargaining conciliation, and arbitration
Marxist Approach
Marxist see conflict as a product of capitalist society.
It arises not jest because of competing interest even
because of division with in society b/w those who own
or manage the means of production and those who
have only their labor to offer.
Trade unions can make revolutionary social changes.
TU focus on improving the position of workers with in
the capital system.
They include politics in every strikes.
The support the intervention by rhe tribunals and
legislation.
Significance of IR
Industrial peace

Industrial democracy

Improved productivity

Benefits to workers
Why employees join unions
Dissatisfaction (wage, security, long working hors, working condition, type of work)
Lack of power
Union instrumentality

(read trade union movement in india)
Industrial Conflicts-
Industrial Disputes Act,1947.
Any dispute or difference between employees and
employees ,or between employees and employers ,or
between employers and employers which is connected
with the employment ,or non employment , or terms
of employment or with the conditions of work of any
person.
Forms of Industrial Disputes
Strike sympathetic ,General , Unofficial, Sectoral,
Bumper, Sit down ,Slow-down , Lightning ,Hunger .
Lock outs

Gherao
Picketting and Boycott
Machinery for prevention and settlement of
Industrial Dispute

Voluntary Methods


Collective Bargaining
Trade Unions
Joint Consultations
Grievance Procedure
Code Of Discipline
Government
Machinery



Labour
Administration
Machinery
Statutory Measures

Works committee
Conciliation
Arbitration
Adjudication-
Labour Courts
Industrial Tribunals
National Tribunals
Collective Bargaining
A procedure by which the terms and conditions of
workers are regulated by the agreements between their
bargaining agent and employer.

The basic objective of collective bargaining is to arrive
at a agreement on wages and other conditions of
employment.
Objectives of
Collective Bargaining
To settle dispute or conflicts relating to wages and
working conditions.
To protect the interest of workers through collective
action.
To resolve the differences between workers and
management through voluntary negotiations and
arrive at a consensus.
To avoid third party intervention in matters relating to
employment.
Types of Bargaining
Conjunctive/Distributive Bargaining
Co-operative Bargaining
Productivity Bargaining
Composite Bargaining

Conjunctive/Distributive Bargaining
The parties try to maximize their respective gains.
They try to settle economic issues such as wages,
benefits, bonus etc. through a zero sum game.
Co-operative Bargaining
Both parties realize the importance of surviving in
such difficult times and are willing to negotiate the
terms of employment in a flexible way.
Productivity Bargaining
In this method, workers wages and benefits are linked
to productivity. A standard productivity index is
finalized through agreements.
Composite Bargaining

In this method, labour bargains for wages as usual but
goes a step further demanding equity in matters
relating to work norms, employment levels, manning
standards, environmental hazards, sub contracting
causes etc.
Collective Bargaining Structure
Plant Level
Industry Level
National Level

Collective Bargaining processes
Preparing for negotiations
Identifying the bargaining issues
Wage-Related
Supplementary Economic Benefits
Institutional issues
Administrative issues.
Negotiating
Reaching the agreement
Ratifying the agreement
Administration of the agreement
Pre-requisites for Collective
Bargaining
Selection of negotiation team
Rec0gnition of union representatives
Homework
Grievance, safety and hygiene problems on a routine
basis
Trade unions should encourage internal union
democracy
Should be concerned with quantity of work and
quality of work
Strike and lock out as last resort
Discipline
Three concepts.
Negative Discipline

Positive Discipline

Self Discipline and control
Differences between Positive and
Negative Discipline
Point
Negative Discipline Positive Discipline
Concept It is adherence to
established norms and
regulations ,out of fear of
punishment.
It is the creation of a
conductive climate in an
organization so that
employees willingly
conform to the
established rules .

Conflict
Employees do not
perceive the corporate
goals as their own.
There is no conflict
between individual and
organizational goals.


Supervision
Requires intense
supervisory control to
prevent employees from
going off the track.
Employees exercise self
control to meet
organizational objectives.
Red Hot Stove Rule- McGregor
According to the Red Hot Stove Rule ,disciplinary action should have the following
consequences:

Burns immediately ; If a disciplinary action is to be taken ,it must occur immediately so
the individual will understand the reason for it . With the passage of time , people have
the tendency to convince themselves that they are not at fault.

Provides warning ; It is important to provide advance warning that punishment will
follow unacceptable behaviour . As you move closer to a hot stove ,you are warned by
heat that you will be burned if you touch it.
Gives consistent punishment ; Disciplinary action should also be consistent in that every
one who performs the same act will be punished accordingly. As with a hot stove , each
person who touches it is burned the same.

Burns impersonally ; Disciplinary action should be impersonal .There are no favorites
when this approach is followed.
Judicial Approach to Discipline in
India
The Industrial Employment (standing orders)Act 1946 - Act requires
all establishment to define service rules and regulations which govern
the conditions of employment of workers. Violation or infringement of
these terms and conditions may lead to misconduct or indiscipline.

The industrial Disputes Act 1947 (amended in 1982) prescribes an
elaborate procedure for discharging a delinquent employee even on
grounds of serious misconduct.

Payment of wages Act places restrictions on the imposition of fines
on an accused employee.
Domestic Enquiry- up holding

Principles of Natural Justice
The principle of Natural Justice states that no man
should be held guilty without getting an opportunity
to explain his point of view . It states that the worker
be given a fair chance ;
- to present evidence of their own choice.
- to cross examine the managements evidence
- to explain his point of view without any pressure or fear.
Punishments
Dismissal
Discharge
Discharge simpliciter
Suspension
Demotion to a lower grade
With-holding of increments
Fine
Warning/censure
Suspension
Prohibiting an employee from attending work , preventing him from
discharging the duties assigned to him .
Procedural suspension suspension effected while
enquiry is ordered to find out whether he is guilty or not.
Served with or without charge sheet
- A subsistence allowance ( of Basic + DA and
compensatory allowances) for a period of 90 days and if the
enquiry goes beyond 90 days - almost of the regular
salary.
Dismissal and Discharge
In both cases the employees services stand terminated .
Dismissal Industrial Disputes Act 1947 (1982)
punishment against alleged misconduct and has a negative
connotation. difficult to find alternative employment. Services
are terminated immediately. Employer is expected to conduct
domestic enquiry. Employer can with hold payment of the dues
payable to the employee.
Discharge not always punishment ,may not carry a
negative connotation .Employer will be served a
reasonable notice .All dues payable will be settled
immediately.
Empowerment
OB The Traditional (Theory X) Role of Management
Command & control
Motivating lazy employees with rewards
and punishment
Structuring work to standardize it and make it simple
and predictable
Making all of the important decisions
Supervising behaviour to ensure performance and
quality
Telling workers what to do and how to do it!
Empowerment: Flattening the
Power Structure
Idea of empowerment is to give as much responsibility
and authority to employees as is reasonable given the
context.
Unfortunately, empowerment is a poorly understood
concept that is often confused by managers, who lump
it together with such things as TQM and reengineering
True empowerment means letting employees make
decisions about their work: tasks, behaviours, goal
setting and setting work priorities (i.e. job context &
job content)

Benefits of Empowerment
All employees view themselves as owners of the
business.
Improved productivity
Creativity and innovation
Customer-focus
Faster decision making
Organizational learning
Making full use of human resources engaging the
mind of every
Degrees of Empowerment
Total management control no employee discretion
Participatory management management generally
controls the work and the context, but allows
employees to make some decisions (typically minor
ones)
Self-management employees make most decisions
pertaining to their work and work setting
Empowered People
Gretchen Spreitzer found that employees who feel
empowered share the following 4 beliefs:
Meaning belief that ones work is aligned with
his/her values
Competence belief that he/she has the ability to
effectively complete his/her work role
Self-determination belief that he or she has the
freedom and right to decide how to approach his/her
work, without being micromanaged
Impact Belief that he/she can influence org.
outcomes
Basically, empowered people are self motivated to
perform their work to the best of their abilities and to
go above and beyond the call of duty at work.
This suggests:
Conscientiousness
Internal locus of control
High self-esteem
Self-motivation (an element of Emotional
Intelligence)
Theory Y is an appropriate perspective
Issues with Empowerment
Managers misunderstand it
Managers only pay it lip service
Organizations are not prepared in terms of structure,
culture and rewards
Managers are displeased when empowered workers
make decisions that differ from their expectations
Managers expect to see results without having to make
a strong commitment or take risks
Employees need the skills and training to manage risks
and decision making
Many employees do not want the added responsibility
and accountable and are uncomfortable putting their
necks on the line
Not all people are conscientious enough to be
empowered.