This document outlines the syllabus for a course on human resource management. It covers 8 modules that will be taught over the semester. Module I provides an introduction to HRM, including its meaning, significance and the historical evolution of the field. It discusses the major functions of HRM and the various career opportunities available. The remaining modules will cover topics such as recruitment and selection, training and development, compensation and benefits, performance management, employee relations, and career and succession planning. Recommended textbooks are also provided.
This document outlines the syllabus for a course on human resource management. It covers 8 modules that will be taught over the semester. Module I provides an introduction to HRM, including its meaning, significance and the historical evolution of the field. It discusses the major functions of HRM and the various career opportunities available. The remaining modules will cover topics such as recruitment and selection, training and development, compensation and benefits, performance management, employee relations, and career and succession planning. Recommended textbooks are also provided.
This document outlines the syllabus for a course on human resource management. It covers 8 modules that will be taught over the semester. Module I provides an introduction to HRM, including its meaning, significance and the historical evolution of the field. It discusses the major functions of HRM and the various career opportunities available. The remaining modules will cover topics such as recruitment and selection, training and development, compensation and benefits, performance management, employee relations, and career and succession planning. Recommended textbooks are also provided.
Module I (6 Hours) Introduction, meaning and significance of HRM. Historical evolution of HRM. Major functions of HRM. Line functions and staff functions. Principles of HRM. HR Competencies. Institutions of repute which impart HRM education in India. Professional Associations in HRM. Career opportunities in HRM.
Module II (6 Hours) Pre-recruitment functions of HRM- Organizational structure, Job analysis, HR Planning and budget approval. Strategic decision to outsource, engage contract workers or to recruit people on company role.
Module III (8 Hours) Recruitment, selection and appointment: Meaning and significance of recruitment, process of recruitment, sources of recruitment, cost-benefit analysis of recruitment. Meaning and significance of selection, process of selection, selection techniques- tests, interviews and salary negotiation. Meaning and significance of appointment, process of appointment, legal aspects of employment contract, joining formalities and induction.
Module IV (8 Hours) Training and development: Meaning and significance of training and development, Process of training development, needs analysis, training design, training implementation and training evaluation. Methods of training on the job methods and off the job methods.
Module V (6 Hours) Compensation and benefits: Meaning and significance of compensation and benefits. Basic salary, allowances, incentives, perks, and benefits. Structured pay scales of the government sector and cost to company approach of the private consultant. Statutory aspects of compensation and benefits.
Module VI (8 Hours) Performance management: Meaning and significance of performance management. Process of performance management. Types of performance appraisal system. Performance goal setting, Performance coaching and monitoring, performance evaluation and performance feedback. Aligning performance outcome to career and succession planning.
Module VII (8 Hours) Employee Relations: Meaning and significance of employee relations. Employee relation in unionized and non-unionized organizations. Handling employee grievances. Employee discipline and domestic enquiry. Legal aspects of employee relations with reference to trade union Act, industrial employment standing orders Act and Industrial Disputes Act. Statutory aspects of health, welfare and safety of employees.
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Module VIII (6 Hours) Career and succession planning: Meaning, significance and process of career planning. Career stages, responsibility for career planning and career anchors. Meaning, significance and process of succession planning. Continuity of leadership and its impact on business.
RECOMMENDED BOOKS: 1. Essentials of Human Resource Management and Industrial Relations P Subba Rao, HPH. 2. Human Resource Management - Seema Sanghi, Macmillan, 2011. 3. Human Resource Management - Cynthia D. Fisher, 1/e, CengageLearning.. 4. Human Resource Management - Biswajeet Pattanayak, 3/e, PHI. 5. Human Resources Management: A South Asian Perspective, Snell,Bohlander, & Vohra, Cengage Learning, 16th Rep., 2012. 6. Human Resource Management - Lawrence S. Kleeman, Biztantra ,2012. 7. A Text Book of Human Resource Management Dwivedi R. S,Vikas Publishing House. 8. Human Resource Management Rao V. S. P, Excel Books, 2010.
REFERENCE BOOKS: 1. Human Resource Management - John M. Ivancevich, 10/e, McGrawHill. 2. Human Resource Management in practice - Srinivas R. Kandula,PHI, 2009 3. Managing Human Resources - Luis R Gomez-Mejia, David B.Balkin, Robert L. Cardy, 6/e,PHI, 2010. 4. Human Resource Management - David A. Decenzo, Stephen P.Robbins, 10/e, Wiley IndiaPvt. Ltd., 2011. 5. Personnel Management Memoria, HPH.
Introduction People with required skills to make an organization to achieve the set goal & targets. HRM is all about how to induce people to make an organization by Getting the people who can make an organization. Enabling those people to acquire required capabilities to make a successful organization. Motivating them to contribute their resources continuously for running the organisation successfully.
Meaning
The field of Management which has to do with planning, organising, directing and controlling the functions of procuring, developing, maintaining and utilizing a labour force, such that the a) Objectives for which the company is established are attained economically and effectively. b) Objectives of all levels of personnel are served to the highest possible degree and c) Objectives of society are considered and served.-Michael J. Juclus
Significance of HRM
People are the most important asset of any organization . HRM is an important strategic tool for an organization. It helps to establish on oraganisations sustainable competitive advantage. Human Resources are critical for effective oraganisational functioning. Poor human resource planning can result in spurts of hiring followed by lay-offs which will result high training expenses, high lay-off costs and low employee morale. Haphazard compensation systems do not attract, keep and motivate good employees. Also it is not enough to acquire good and competent people but also train and develop them, provide them a proper career and provide job satisfaction and adequate compensation to retain them in the organization for a long term. Because of its importance, responsibility for HR activities is shared between HR Department and line managers. For instance, the HR department may recruit and initially screen the job candidates, but the final selection is made by departmental managers under whom the new employees will work. Also HR department may establish performance appraisal policies and procedures, but the actual evaluating and coaching of employees is done by their the managers and immediate supervisors.
Historical evolution of HRM
The history of personnel management begins around the end of the 19th century, when welfare officers (sometimes called welfare secretaries) came into being. They were women and concerned only with the protection of women and girls. Their creation was a reaction to the harshness of industrial conditions, coupled with pressures arising from the extension of the franchise, the influence of trade unions and the labour movement, and the campaigning of enlightened employers, often Quakers, for what was called industrial betterment. As the role HUMAN RESOURCE MANAGEMENT 12MBA26
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grew there was some tension between the aim of moral protection of women and children and the needs for higher output. The First World War accelerated change in the development of personnel management, with women being recruited in large numbers to fill the gaps left by men going to fight, which in turn meant reaching agreement with trade unions (often after bitter disputes) about dilution accepting unskilled women into craftsmens jobs and changing manning levels. During the 1920s, jobs with the titles of labour manager or employment manager came into being in the engineering industry and other industries where there were large factories, to handle absence, recruitment, dismissal and queries over bonuses and so on. Employers federations, particularly in engineering and shipbuilding, negotiated national pay rates with the unions, but there were local and district variations and there was plenty of scope for disputes. During the 1930s, with the economy beginning to pick up, big corporations in these newer sectors saw value in improving employee benefits as a way of recruiting, retaining and motivating employees. But older industries such as textiles, mining and shipbuilding which were hit by the worldwide recession did not adopt new techniques, seeing no need to do so because they had no difficulty in recruiting labour. The Second World War brought about welfare and personnel work on a full-time basis at all establishments producing war materials because an expanded Ministry of Labour and National Service insisted on it, just as the Government had insisted on welfare workers in munitions factories in the previous conflict. The government saw specialist personnel management as part of the drive for greater efficiency and the number of people in the personnel function grew substantially; there were around 5,300 in 1943. By 1945, employment management and welfare work had become integrated under the broad term personnel management. Experience of the war had shown that output and productivity could be influenced by employment policies. The role of the personnel function in wartime had been largely that of implementing the rules demanded by large-scale, state-governed production, and thus the image of an emerging profession was very much a bureaucratic one. Following the development of poor industrial relations during the 1960s a Royal Commission under Lord Donovan was set up. Reporting in 1968 1 , it was critical of both employers and unions; personnel managers were criticised for lacking negotiation skills and failing to plan industrial relations strategies. At least in part, Donovan suggested, these deficiencies were a consequence of managements failure to give personnel management sufficiently high priority. In the 1960s and 70s employment started to develop significantly. At the same time personnel techniques developed using theories from the social sciences about motivation and organisational behaviour; selection testing became more widely used, and management training expanded. During the 1970s, specialisms started to develop, with reward and resourcing, for example, being addressed as separate issues. Around the mid-80s, the term human resource management arrived from the USA. The term human resources is an interesting one: it seemed to suggest that employees were an asset or HUMAN RESOURCE MANAGEMENT 12MBA26
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resource-like machines, but at the same time HR also appeared to emphasise employee commitment and motivation. Todays HR profession encompasses a number of specialist disciplines, including diversity, reward (including compensation, benefits, pensions), resourcing, employee relations, organisation development and design, and learning and development (the history of which is covered in detail in the next section of this factsheet). Most recently, in developing the Profession Map, the CIPD has defined ten professional areas covered by the HR profession. Milestones in the Development of Human Resource Management 1890- 1910 Frederick Taylor develops his ideas on scientific management. Taylor advocates scientific selection of workers based on qualifications and also argues for incentive- based compensation systems to motivate employees.
1910- 1930 Many companies establish departments devoted to maintaining the welfare of workers. The discipline of industrial psychology begins to develop. Industrial psychology, along with the advent of World War I, leads to advancements in employment testing and selection.
1930- 1945 The interpretation of the Hawthorne Studies' begins to have an impact on management thought and practice. Greater emphasis is placed on the social and informal aspects of the workplace affecting worker productivity. Increasing the job satisfaction of workers is cited as a means to increase their productivity.
1945- 1965 In the U.S., a tremendous surge in union membership between 1935 and 1950 leads to a greater emphasis on collective bargaining and labor relations within personnel management. Compensation and benefits administration also increase in importance as unions negotiate paid vacations, paid holidays, and insurance coverage.
1965- 1985 The Civil Rights movement in the U.S. reaches its apex with passage of the Civil Rights Act of 1964. The personnel function is dramatically affected by Title VII of the CRA, which prohibits discrimination on the basis of race, color, sex, religion, and national origin. In the years following the passage of the CRA, equal employment opportunity and affirmative action become key human resource management responsibilities. HUMAN RESOURCE MANAGEMENT 12MBA26
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1985- present Three trends dramatically impact HRM. The first is the increasing diversity of the labor force, in terms of age, gender, race, and ethnicity. HRM concerns evolve from EEO and affirmative action to "managing diversity." A second trend is the globalization of business and the accompanying technological revolution. These factors have led to dramatic changes in transportation, communication, and labor markets. The third trend, which is related to the first two, is the focus on HRM as a "strategic" function. HRM concerns and concepts must be integrated into the overall strategic planning of the firm in order to cope with rapid change, intense competition, and pressure for increased efficiency. Major functions of HRM Line Functions /ma n a g e r i a l f u n c t i o n s o f h r m 1. Planning: Research and plan about wage trends, labour market conditions, union demands and other personnel benefits. Forecasting manpower needs etc. 2. Organizing: Organizing manpower for the achievement of organizational goals and objectives. 3. Staffing: Recruitment & Selection 4. Directing: Issuance of orders and instructions, providing guidance and motivation to managers and employees. 5. Controlling: Regulating personnel activities and policies according to plans. Observations and comparisons of deviations
Staff functions./O P E R A T I O N A L F U N C T I O N S O F H R M 1. Procurement: Planning, Recruitment and Selection, Induction and Placement 2. Development: Training, Development, Career planning and counselling. 3. Compensation: Wage and Salary determination and administration 4. I ntegration: Integration of human resources with organization. 5. Maintenance: Sustaining and improving working conditions, retentions, employee communication 6. Separations: Managing separations caused by resignations, terminations, layoffs, death, medical sickness etc.
Principles of HRM
Principles of Human Resources Management have been well summarized in 10Cs. Comprehensiveness. This involves the proper management of all aspects of the people you are working with bearing in mind that human resources is the most valuable resource your firm has. HUMAN RESOURCE MANAGEMENT 12MBA26
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This means that the financial, health, transportation, tools and anything employees need to work should be well taken care of.
Cost-effectiveness. Companies should ensure that they remunerate their employees accordingly. The employees reward system should be able to sustain the organization.
Control. Firms should be able to take charge of their employees and ensure that productivity and quality is achieved and maintained. Control should be exercised carefully so that it does not seem like tyranny.
Coherence. All the steps taken by a firm in the management of human resources must be in line with the mission and vision of the firm. Human Resources managers should direct their focus on what the company needs and employee abilities.
Communication is very important in every organization. Through communication, firms can ensure there is flow of information that is necessary for efficiency.
Creativity is key if a firm is to be efficient in human resources management. Firms should adopt new ways of human resources management as long as it fits their companies.
Competence. It is an organizations responsibility to ensure that their employees are skilled to do their duties. Because the competence of a firm depends on that of its employees, firms should do everything to increase employee capabilities for example, by training them.
Credibility. Firms must ensure that they remain the best brand to most of their clients by maintaining their credibility. They should put in place strategies that ensure all employees have a clear sense of direction to a common goal.
Change is inevitable for businesses. The fastest business to embrace change in management of their human resources is better placed to produce better results.
Commitment. Every organization has objectives which they intend to meet both for themselves and for their clients. To meet these goals, firms need committed staff therefore it is the firms responsibility to keep their employees motivated so as to ensure they are committed to the organizations course.
HR Competencies
Credible activist HR professionals in high-performing firms function as credible activists. They do what they say thay will do. Such results-based integrity serves as the foundation of personal trust that, in turn, translates into professional credibility. They have effective interpersonal skills. They are flexible in developing positive chemistry with key stakeholders. They translate this positive chemistry into influence that contributes to business results. They take strong positions about business issues that are grounded in sound data and thoughtful opinions. HUMAN RESOURCE MANAGEMENT 12MBA26
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Strategic positioner High-performing HR professionals understand the global business context the social, political, economic, environmental, technological, and demographic trends that bear on their business and translate these trends into business implications. They understand the structure and logic of their own industries and the underlying competitive dynamics of the markets they serve, including customer, competitor, and supplier trends. They then apply this knowledge in developing a personal vision for the future of their own company. They participate in developing customer-focused business strategies and in translating the business strategy into annual business plans and goals. Capability builder At the organisational level, an effective HR professional creates, audits, and orchestrates an effective and strong organisation by helping define and build its organisational capabilities. Capability represents what the organisation is good at and known for. These capabilities outlast the behavior or performance of any individual manager or system. Such capabilities might include innovation, speed, customer focus, efficiency, and the creation of meaning and purpose at work. HR professionals can help line managers create meaning so that the capability of the organisation reflects the deeper values of the employees. Change champion Effective HR professionals develop their organisations capacity for change and then translate that capacity into effective change processes and structures. They ensure a seamless integration of change processes that builds sustainable competitive advantage. They build the case for change based on market and business reality, and they overcome resistance to change by engaging key stakeholders in key decisions and building their commitment to full implementation. They sustain change by ensuring the availability of necessary resources including time, people, capital, and information, and by capturing the lessons of both success and failure. Human resource innovator and integrator At an organisational level, a major competency of effective HR professionals is their ability to innovate and integrate HR practices around a few critical business issues. The challenge is to make the HR whole more effective than the sum of its parts. High-performing HR professionals ensure that desired business results are clearly and precisely prioritised, that the necessary organisation capabilities are powerfully conceptualised and operationalised, and that the appropriate HR practices, processes, structures, and procedures are aligned to create and sustain the identified organisational capabilities. As they do so with discipline and consistency, they help collective HR practices to reach the tipping point of impact on business results. The innovation and integration of HR practices, processes, and structures, directs HR more fully toward impacting business results. Technology proponent For many years, HR professionals have applied technology to basic HR work. HR information systems (HRIS) have been applied to enhance the efficiency of HR processes including benefits, payroll processing, health care funding, record keeping, and other administrative services. In this HRIS round, we see a dramatic change in the implications of technology for HR professionals. At the organisation level, high-performing HR professionals are now involved in two additional HUMAN RESOURCE MANAGEMENT 12MBA26
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categories of technological application. First, HR professionals are applying social networking technology to help people stay connected with each other. They help guide the connectedness of people within the firm and the connectedness between people outside firms (especially customers) with employees inside the firm. Second, in the high-performing firms, HR professionals are increasing their role in the management of information. This includes identifying the information that should receive focus, bundling that information into useable knowledge, leveraging that knowledge into key decisions, and then ensuring that these decision are clearly communicated and acted upon. This updates the operational efficiency competency and will add substantive value to their organizations. Institutions of repute which impart HRM education in India
1. Indian Institute of Management, Ahmedabad (IIM A) 2. Indian Institute of Management, Calcutta (IIM C) 3. Indian Institute of Management, Bangalore (IIM B 4. Indian Institute of Management, Lucknow (IIM L) 5. XLRI - Xavier Labour Research Institute, Jamshedpur 6. ISB - Indian School of Business, Hyderabad 7. FMS - Faculty of Management Studies, University of Delhi 8. Indian Institute of Management, Indore (IIM I) 9. Indian Institute of Management, Calicut (IIM K - Kozhikode) 10. Jamnalal Bajaj Institute of Management Studies, Mumbai (JBIMS) 11. S. P. Jain Institute of Management Studies, Mumbai (SPJIMR) 12. Shailesh J. Mehta School of Management, IIT Mumbai (Bombay) 13. Management Development Institute, Gurgaon (MDI) 14. Narsee Monjee Institute of Management Studies, Mumbai (NMIMS) 15. Xavier Institute of Management, Bhubaneswar (XIM B)
Professional Associations in HRM
Institute of Human Resource Management of Serbia 2013 Serbia Omnibus HR Membership Asociacin Mexicana en Direccin de Recursos Humanos 1947 Mexico Omnibus HR 12,500 American Society for Healthcare Human Resources Administration 1964 United States Healthcare 3,350 American Society for Training & 1945 Training and
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Institute of Human Resource Management of Serbia 2013 Serbia Omnibus HR Membership Development United States development Chartered Institute of Personnel and Development 1913 England Omnibus HR 135,000 College and University Professional Association for Human Resources
United States Colleges and universities 18,000 HR Policy Association
United States Industry leaders 330 Hong Kong Institute of Human Resource Management 1977 Hong Kong Omnibus HR 4,500 Human Resources Professionals Association 1936 Canada Omnibus HR 18,000 Institute of Recruiters 2010 England Recruiting & HR 2,500 International Foundation of Employee Benefit Plans 1954 United States Total Rewards 35,000 International Public Management Association for Human Resources 1906 United States Public sector 10,000 HUMAN RESOURCE MANAGEMENT 12MBA26
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Institute of Human Resource Management of Serbia 2013 Serbia Omnibus HR Membership Labor and Employment Relations Association 1947 United States Omnibus HR 3,000 National Academy of Human Resources 1992 United States Industry leaders 150 National Association of Personnel Services 1961 United States Recruiting 700 National Human Resources Association 1951 United States Omnibus HR 1,500 National Institute of Personnel Management 1980 India Omnibus HR 11,500 Recognition Professionals International 1998 United States Recognition 475 Society for Human Resource Management 1948 United States Omnibus HR 250,000 WorldatWork 1955 United States Total Rewards 30,000
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Career opportunities in HRM
Human resources officer IT trainer Occupational psychologist Recruitment consultant Training and development officer
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MODULE 2(6 Hours) Pre-recruitment functions of HRM Organizational structure
Designing Organisational Structure Organisations are economic and social entities in which a number of persons perform multifarious tasks in order to attain common goals. Organisations are effective instruments in that they help individuals accomplish personal objectives that they (persons) cannot achieve alone. According to Argyris, "organisations are usually formed to satisfy objectives "that can best be met collectively.
Organisation is only a means to an end. It takes certain inputs from the environment and converts them into specified outputs desired by the society. Organisation design deals with structural aspects of organisations: it aims at analysing roles and relationships so that collective effort can be explicitly organised to achieve specific ends.
There is significant development in organisation design. Exhibit 1.2 presents these changes.
Exhibit 1.2 CHANGES IN ORGANISATION DESIGN 1950s 2000s Broad Banding* Multiple layers Flat/Delayered Few Levels Manufacturing/Labour Feed forward and Empowerment/ Intensive very less control Ownership Autocratic Team Focussed Pay the person
Centralised Adaptive/Mobility based on Merit Tightly held ownership Flexible Horizontal Reinforces Individual contributors Decentralised Few Rules Narrow Responsibilities Externally focussed Market Driven
(Adapted: From Saurabh Rastogi, Grades to Bands, Human Capital, October 1998, pp.45- 46.) * Broad banding is a job hierarchy that contains a small number of levels or grades.
Steps in Designing Organisational Structure
The first step in organisation design is analysis of present and future circumstances and environmental factors. The next stage deals with detailed planning and implementation. Organisation analysis is the basis for organisation design and is the process of defining aims, objectives, activities and structure of an enterprise. Organisation analysis includes an analysis of the following aspects: (i) External environment economic, political, legal etc. HUMAN RESOURCE MANAGEMENT 12MBA26
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(ii) Overall aims and purpose of the enterprise - survival, growth, profit maximisation, wealth maximisation etc. (iii) Objectives - specific aims or targets to be achieved. (vi) Activities - assessment of work being done and what needs to be done if the company is to achieve its objectivities. (v) Decisions to be taken across horizontal and vertical dimensions. (vi) Relationships - from the viewpoint of communications. (vii) Organisation structure - includes grouping of activities, span of management, management levels etc. (viii) Job structure - job design, job analysis, job description, job specification etc. (ix) Organisation climate -working atmosphere of the enterprise. It includes teamwork and cooperation, commitment, communications, creativity, conflict resolution, participation, confidence and trust. (x) Management style - includes laissez-faire, democratic, benevolent - autocratic. (xi) Human resources - includes availability of human resources marked by skill, knowledge, commitment, aptitude etc.
Formal relations are divided into line and staff relations and let's look into these relationships in greater detail in the ensuing sections.
(i) Line and Staff Relationships: The relationship with which the managers in an organisation deal with one another are broadly classified into two categories, viz., line and staff. Line and staff are often used in ways that are loose and unclear. Attempts have been made in some organisations to dispense with them. Thus, operating managers/departments are frequently substituted for line and auxiliary and service departments are used for staff. Line and staff are characterised by relationship but not by departments. The important category of relationships is line relationship. (ii) Line Relationship: The relationship existing between two managers due to delegation of authority and responsibility and giving or receiving instructions or orders is called/ine relationship. Thus, line relationship generally exists between a superior and an subordinate. Line refers to those positions of an organisation which have responsibility, authority and are accountable for accomplishment of primary objectives. Managers identified as line are not subject to command by staff position. In case of disagreement between line and staff, the line manager has the right to make final operating decisions.
Line authority represents uninterrupted series of authority and responsibility delegating down the management hierarchy. In other words, the Board of Directors delegates authority to the managing director who in turn delegates a part of his authority to the general manager. The general manager in turn delegates part of his authority to different departmental heads and through them to the supervisors. However, the line managers are completely responsible and accountable for the results achieved by the employees of the respective departments and sections. This does mean that though the authority is delegated, responsibility for action taken by a subordinate still rests with the superior.
The third kind of relationship is staff relationship.
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(iii) Staff Relations: The staff concept is probably as old as organisation itself. It is virtually impossible for busy line managers to perform all their functions and concentrate on all activities including management of the people in their respective departments. This gives rise to securing advice and help from specialists. This creates staff relationships. The relationship between two managers is said to be a staff relation, when it is created due to giving and taking advice, guidance, information, help or assistance, counselling etc., in the process of attaining organisational goals.
Thus, staff managers analyse problems, collect information and develop alternative suggestions and help the line managers to make right decisions quickly. Staff control is monitoring and reporting, which brings the results of information to the attention of the line managers for action by the line. Thus, they reduce the work load of the line managers and allow them to concentrate on their operative issues.
Having discussed two concepts, it would be appropriate to apply the line and staff relationship to the organisation design.
Line and Staff Relationships in an Organisation Organisation can also be structured on the basis of line and staff. As discussed earlier, line and staff are viewed as relationships but not by departments. Some functional managers have line relations with other managers whilst some other managers have staff relations with other managers in the organisation as shown in Figure 1.7. But those functional managers having staff relations may have line LINE AND STAFF RELATIONSHIPS IN AN ORGANISATION
Note denotes line relationship denotes staff relationship
MANAGING DIRECTOR MANAGER MARKETING GENERAL MANAGER MANAGER MARKETING MANAGER PRODUCTION MANAGER RESEARCH & DEVELOPMEN T MANAGER HUMAN RESOURCES DEPUITY MANAGERHUMAN RESOURCES
relations in relation to the subordinates. Thus, organisation structure is designed on the basis of line and staff relationship within the departmental structure. It is often regarded that the personnel manager has staff relation with other managers in an organisation. Now we discuss line and staff relationship and personnel management in an organisation.
Job analysis Definition Job analysis is a process in which jobs are studied to determine what tasks and responsibilities they include, their relationship to other jobs, conditions under which work is performed and the personal characteristics required for satisfactory performance. (DALE YODER)
Job analysis consists of two parts, a statement of work to be performed (the job description) and the skill and knowledge which must be possessed by any one filling the job. (STRAUSS & SAYLES)
JOB EVALUATION: Job evaluation is the process of 1 arranging jobs in an organisation in an hierarchical order of worth and 2 fixing compensation for each job. (JOB PRICING)
JOB EVALUATION is the process of analysis and assessment of jobs to ascertain reliably their relative worth using the assessment as a basis for a balanced wage structure. (BRITISH INSTITUTE OF MANAGEMENT)
JOB EVALUATION is a process determining the relative worth of various jobs within the organisation, so that differential wages may be paid to jobs of different worth. (WADEL FRENCH)
OBJECTIVES OF JOB EVALUATION
PRINCIPLES OF EVALUATION 1 Obtain data & description of each job within the plant 1 Must be an attempt to rate the job not the man 2 Provide a standard procedure for determining relative worth and value of each job 2 Elements of job slected must be common to most jobs, few in no, simple, easy to understand 3 Determine a rate of pay for each job which is fair equitable with relation to other jobs. In the plant/ community /industry. 3 Clear definition and consistency of degree of elements 4 Ensure like wages are paid to all qualified employees on like work 4 Secure co-operation from supervisors for job evaluation 5 Promote fair & accurate consideration for all for an advancement & transfer 5 Secure co-operation & participation from employees HUMAN RESOURCE MANAGEMENT 12MBA26
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6 Provide a factual basis for the consideration of wage rates for similar jobs within the industry. 6 Minimise number of wage rates within each grade
7 Provide information for the work, employees selection, training etc
Methods 1) Analyse prepare job description & procedure 2) Select and prepare a job evaluation plan of 3) Classify jobs job evaluation 4) Install the programme 5) Maintain the programme
PROCESS and BENEFITS
Job can be analysed through a Process Basic 7 steps
1) Strategies : a) Extent of employees involvement in job analysis b) The level of detail of job analysis c) timing and frequency of job analysis d) Past oriented Vs Future Oriented job analysis
2) Collection of background information: Organisation charts, class specification & existing job description
3) Selection of representative position to be analysed: In order to analyse selecting a representative position.
4) Collection a job description: On features of the job, required employee behavour & human requirement
5) Developing a job description: Contents of jobs in term of function & operations as given in job description
6) Developing a job specification: Converting job description into job specification Describes Personal qualities, traits, skills, knowledge & background for getting job done.
7) Developing employee specification: Conversion of job specification into employee specification, which includes, physical qualification, educational qualification, experience.
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JOB ANALYSIS PROCESS: BENEFITS
o Company Strategies
o Collective of information
o Process information
o Drafting job description
o Drafting job specification
Human Resources Planning Team building Recruitment & Selection Training & Development Career Planning & Development Performance analysis & Development Job evaluation Wages & Salary Levels Discipline & grievances Work scheduling Health & Safety
HR Planning and budget approval.
INTRODUCTION: Corporation level strategies include: expansion, diversification, Mergers, acquisitions & joint ventures, implementation of these strategies demand for additional Human Resources Other Strategies Vs Turnaround, retrenchment results in reduction on HRP Thus, strategies planning is the basis for HRp. HRP- Manager of a company has to understand the companies strategies and their demand for HR. Before Planning for HR.
A process by which an organisation should move from its current man power position to its desired man power position. HRP strives to do selecting right number & right kind of people at the right place, at the right time, doing things result in both the organisation and the individual receiving maximum long run benefit. (E.W. VETTER) An integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people performing the duties and task required to meet organizational objectives and satisfy individual need & goal of oragnisation members (LEON. C.MEGGINSON) Objectives of HRP: Important objectives are:
i) To recruit & retain the human resources of required quantity and quality ii) To foresee employees turnover and make arrangements for minimizing turnover and filling up consequent vacancies. iii) To meet the needs of the programme of expansion, diversification etc iv) To foresee the impact of technology on work. Existing employees and future human resources requirements. Job Analysis B E N E F I T S HUMAN RESOURCE MANAGEMENT 12MBA26
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v) To improve standards, knowledge, ability, discipline etc vi) To assess the surplus or shortage of human resources and take measures accordingly vii) To maintain congenial industrial relations by maintaining optimum level and structure of human resources. viii) To minimise imbalances caused due to non-availability of human resources of the right kind, number in right time and right place. ix) To make best use of human resources x) To estimate the cost of human resources.
NEED FOR HRP:
1) Changes of environment: Uncertainty of future. Environment of organisations changes by various reasons. Viz. Technology, competitors, better products in the market, new marketing efforts, etc., HRP to re-train, redeploy, human resources to suit changes in product mix, technology, distribution etc.
2) Changes in organisations: Organstaional changes due to joint ventures, merger, setting up international operations needs HRP to re-train & redeploy human resources.
3) Replacement against deficiencies: Replacement due to death, retirement, resignation, retrenchment, transfer, promotion etc. simple method to meet deficiency is through fresh recruitment. Others: transfer, promotion, labour contract etc.
4) Employment of surplus manpower : Due to products phase out etc., changes in product mix/market condition/order position/technology/ capacity/utilization, corporate policy.
In case re-deployment not possible management will have to retrench & layoff/ leave of absence without pay/reduced work Hrs, early retirement- Golden handshake/non filling of vacancy.
5) Stability of employment: Matching supply & demand gives better motivation and loyalty to workers. Sense of security of individual, need is met. Steps to improve stability of employment are:
Flexible working system meet peak needs by contract labour Innovative marketing strategy like bonus /seasonal cost reduction to by sub contracting work to contractors.
BENEFITS OF HUMAN RESOURCES PLANNING
Human Resources Planning (HRP) anticipates not only the required kind and number of employees but also determines the action plan for all the functions of personnel management. The major benefits of human resources planning are:- It checks the corporate plan of the organisation. It offsets uncertainty and change. But the HRP offsets uncertainties and changes to the maximum extent possible and enables the organisation to have right men at the right time and HUMAN RESOURCE MANAGEMENT 12MBA26
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in the right place. It provides scope for advancement and development of employees through training, development etc. It helps to anticipate the cost of salary enhancement, better benefits etc. It helps to anticipate the cost of salary, benefits and all the cost of human resources, facilitating the formulation of budgets in an organisation. To foresee the need for redundancy and plan to check it or to provide alternative employment in consultation with trade unions, other organisations and the government through remodelling organisational, industrial and economic plans. To foresee the changes in values, aptitude and attitude of human resources and to change the techniques of interpersonal management etc. To plan for physical facilities, working conditions and the volume of fringe benefits like canteen, schools, hospitals, conveyance, child care centres, quarters, company stores etc. It gives an idea of the type of tests to be used and interview techniques in selection based on the level of skills, qualifications, intelligence, values etc. of future human resources. It causes the development of various sources of human resources to meet the organisational needs. It helps to take steps to improve human resources contributions in the form of increased productivity, sales, turnover etc. It facilitates the control of all the functions, operations, contribution and cost of human resources
PROCESS OF HUMAN RESOURCES PLANNING
Process of Human Resources Planning consists of the following steps: Analysing the corporate and unit level strategies. Demand Forecasting: Forecasting the overall human resources requirements in accordance with the organisational plans. Supply Forecasting: Obtaining the data and information about the present inventory of human resources and forecast the future changes in the human resources inventory. Estimating the net human resources requirements. In case of future surplus, plan for redeployment, retrenchment and lay- off. In case of future deficit, forecast the future supply of human resources from all sources with reference to plans of other companies. Plan for recruitment, development and internal mobility if future supply is more than or equal .o net human resources requirements. Plan to modify or adjust the organisational plan if future supply will be inadequate with reference to future net requirements. The eight steps of human resources planning are depicted in Fig. 4.2 in the order mentioned above. But the same order need not be followed in the actual planning process as the steps are interdependent and sometimes, the first step and the last step may be processed simultaneously. Further, the planner sometimes may not explicitly process some steps. However, it is helpful to the planner to plan for human resources effectively without any complications if he/she has an idea about all steps of HRP. These steps are as shown in the line diagram
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Figure 4.2 HRP PROCESS FLOW DIAGRAM
HUMAN RESOURCE PLANNING MODEL (PROCESS)
FACTORS AFFECTING HUMAN RESOURCE PLAN -(PROCESS) External Factors (i) Government Policies: Policies of the government like labour policy, industrial relations policy, policy towards reserving certain jobs for different communities and sons-of the-soil etc. affect HRP (ii) Level of Economic Development: Level of economic development determines the level of HRD in the country and thereby the supply of human resources in the future in the country. (1) Adjust or Modify the Strategies (10)
(2) (3) (4)
Minus
(9)
(5) (7)
Plan for (6) Plan for (8)
Redeployment Retrenchment/ Out-Sourcing Employment Training Development Internal Redundancy Mobility
Reduced Lay off VRS Attrition CRS/Iron Hand Hours Shake
Work Leave of Golden Hand Sharing Absence Shake without pay Analysing Corporate level & Unit Level Strategies Demand Forecast Resource Requirements Skillwise Knowledge etc Forecast the Future Supply Human Resource in all Sources if supply is Inadequate Supply Forecast Present Inventory of Human Resources + Additions - Losses (Skillwise Knowledgewise Etc.)
Net Human Resources Requirements for Future (Skill,knowledge, Values Etc.,) Control & review Mechanics Surplus of Future Available Human Resources within the Organisation Shortage of Future Available Human Resource within the Organisation HUMAN RESOURCE MANAGEMENT 12MBA26
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(iii) Business Environment: External business environmental factors influences the volume and mix of production and thereby the future demand for human resources. (iv) Information Technology: Information technology brought amazing shifts in the way how do businesses operate? These shifts include: business process reengineering, enterprise resources planning and supply chain management. These changes brought unprecedented reductions in traditional human resources and increase in software specialists. However, these changes reduced the demand for even software specialists at a latter stage. Added to this, the computer-aided design (CAD) and computer-aided technology (CAT) also reduced the existing human resources. (v) Level of Technology: Level of technology determines the kind of human resources required. (vi) International Factors: International factors like the, demand for and supply of human resources in various countries.
Internal Factors (i) Company Strategies: Companys policies and strategies relating to expansion, diversification, alliance etc., determine the human resources demand in terms of quality and quality. (ii) Human Resource Policies: Human Resources policies of the company regarding quality of human resources, compensation level, quality of work life etc. influence human resources plan. (i) Job Analysis: Fundamentally, human resources plan is based on job analysis. Job description and job specification. Thus, the job analysis determines the kind employees required. (iv) Time Horizons: Companies with a stable competitive environment can plan for the long run whereas firms with an unstable competitive environment can plan for only short-term range. (v) Type and Quality of information: Any planning process needs qualitative and accurate information. This is more so with human resources plan. (vi) Companys Production/Operation Policy: Companys Policy regarding how much to produce and how much to buy from outside to prepare a final product, influences the number and kind of people required. (vii) Trade Unions: Influence of trade unions regarding the number of working hours per week, recruitment sources etc. affect HRP.
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Factors Affecting Human Resources
Strategic decision to outsource Outsourcing is best adopted after a careful look at business needs and available options. It is essential that the outsourcing relationship provides strategic business benefits in the future. Outsourcing provides a competitive strategy benefit in a number of ways to an organization. It allows ease of management, reduction in cost, lesser manpower, and frees up internal resources, Outsourcing can, and frequently does, provide both long- and short-term benefits to companies that outsource, provided they have a strategic objective for outsourcing. Medium and long-term gains are best realised by selecting a vendor who brings value to your core business, rather than one who can provide with the lowest prices, Strategic outsourcing, on the other hand, is not driven by a problem-solving mentality. Instead, it is structured so that it is aligned with the companys long-term strategies. The changes that organizations expect from strategic outsourcing vary and can include anything from (a) achieving a gain in competitive advantage, (b) spending more time on those activities that are truly central to the success of the organization, (c) repositioning the organization in the marketplace, or Factors Affecting HRP
External Factors Internal Factors
- Government Policies - Strategic of the company - Level of Economic Development - Human resources Policy Including future supply of HRs of the company
- Business Environment - Formal & Informal Groups
- Information technology - Job Analysis
- Level of Technology - Time Horizons - Natural Factors - Type & Quality of Information Informational Factors - Companys Production Operation Policy
Trade Unions
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(d) achieving a dramatic increase in share price
Engage contract workers or to recruit people on company role
Historically, there is a direct employment relationship between the employee and the employer. But the challenges of modern business have shaken this tradition by paving the way for alternative staffing strategies. While some organisations go for outsourcing their work, others look for contract labour as a solution to staffing problems.
Outsourcing and contract labour are not the same. In outsourcing, the work is given to an external organisation and it is for that organisation to organise things to get the work done right from setting up the plant and machinery to managing the human resources.
Whereas in contact labour, the external organisation appoints the people in its role and deploys them to any organisation. These contract workers will work in the premises under supervision.
How it works
The practice of contract labour is governed by Contract Labour (Regulation and Abolition) Act 1970. While this law is applicable only to worker and supervisory cadre, the practice of contract employment has spread even to managerial positions.
According to this Act, the organisation which utilises the manpower is called Principal Employer and the organisation which appoints people in its role and deploys them to the workplace of its clients is called Labour Contractor.
The Act is applicable to an organisation (principal employer) which utilises twenty or more contract labour and to a labour contractor who employs twenty or more contract labour in the preceding twelve months. The principal employer has to obtain the certificate of registration and the contractor has to obtain license from the labour department of the government to engage contract labour.
The principal employer pays to the contractor the total amount of salary, allowances and benefits payable to the contract workers on a monthly basis and the contractor in turn disburses the salary to contract workers. The contractor also gets his service charges from the principal employer which is approximately 10 per cent of the salary bill.
While contract labourers work under the supervision of principal employer in his premises, they do not have employment relation of whatsoever nature with him. Their employer for all purposes is the labour contractor.
The nature of employment is always temporary for not more than one year duration at a time, since the contractor cannot assure regular employment on behalf of principal employer. Even if contract labourers have a grievance or dispute, they have to raise it only with the contractor who happens to be their employer for all practical purposes.
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Why contract labour?
Contract labour today is employed across several sectors and industries right from government departments to software industries. It is no more confined to worker level jobs, rather there are scientists, doctors, business managers and chartered accountants working on the roles of a labour contractor.
In the government departments, the recruitments are mostly frozen for the past twenty years and getting the increased work load completed with regular employees is difficult. Hence, the departments can have contract labourers by showing it as miscellaneous expenses.
While directly hiring temporary employees can create an industrial dispute at a later date for regularisation of services, this problem can be easily avoided by hiring people through labour contractor.
In the profit making multinational manufacturing organisations, the regular workers are highly unionised, their salaries are high, they are difficult to motivate for increased productivity and get easily provoked even for smaller issues. Taking disciplinary action for misconduct or terminating their services to right size the workforce is a lengthy process under the provisions of Industrial Disputes Act 1947. Hence, more than 50 per cent of the worker category employees in these organisations are hired through labour contractor.
In the software development organisations (IT companies), brand image of the employer by ensuring higher salaries and continuous employment is very important to attract and retain talented people. But all the work they do is not necessarily either of high paying or of continuous nature.
Hence, they hire the software engineers through the contractor for shorter periods and at lower salaries, and for all practical purposes they are shown as employees of the contractor. Many of the IT companies have more number of contract employees and less number of regular employees.
In the research and development organisations, the research projects are tenure-based and thereafter, the organisation may not get another project or they may get the project which may require an altogether new skill set. Hence, this sector prefers contract labour.
There is also a universal truth across all sectors that human resource selection techniques are often failing to produce intended results. In other words, all those who are doing well in the aptitude test and interview at the time of selection are not found to be best performers on the job.
Hence, many organisations prefer to engage the services of contract employees, watch them on the job for about six months to one year both for high performance and good behaviour and thereafter, consider employing them on company roles, by paying one month salary as recruitment charges to the contractor. Employers also believe that for certain functions like that of a janitor and security personnel, contract labour is the right solution not only to save on costs but also to improve efficiency. HUMAN RESOURCE MANAGEMENT 12MBA26
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Advantages Contract workers are generally not unionised, hence, industrial disputes are minimal, salary bills can be minimised since they can be hired just by paying minimum wages, if there is indiscipline, they can be sent home immediately by informing the contractor, if there is excess workforce due to economic recession their services can be withdrawn immediately by informing the contractor.
Contract employees respond positively to incentive schemes since their salaries are low. Contract employees cannot compromise on productivity, quality, and good behaviour since continuance of their services depend upon these factors. The historical belief that people are motivated only by fear and greed is fully true in the case of contract employees. From the employees point of view, when he cannot find a regular job of the company, he has the option to either join as a consultant in company roles or become a contract employee.
Disadvantages The cost of employing contract labour is in fact dearer by 10 per cent because of the service charges payable to the labour contractor. Certain industries like Apparel Manufacturing do not encourage contract labour because the industry works on thin profit margins and cannot afford to spend 10 per cent more towards the service charge payable to the labour contractor. Apparel industries are generally non-unionised and free from industrial disputes.
There is zero tolerance for indiscipline and employees not following norms are forced to exit immediately. Same is the case with industries owned by powerful politicians. In every organisation, certain activities are most important which are required to be carried out only by regular employees.
The advantages of contract employment will back fire if such activities are entrusted to be carried out by contract employees.
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Module 3 (8 Hours) Recruitment, selection and appointment Meaning and significance of recruitment Meaning Recruitment is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization. FLIPPO Recruitment is the discovering of potential candidates.
For actual or anticipated organsational vacancies. It is the linking activity bringing together those with the jobs to fill & those seeking jobs DAVID.
Recruitment is the process to discover the sources of manpower to meet the requirements of staffing schedule and to employ effective measures for attracting the manpower YODER.
Significance 1. Attracts people with multidimensional skills and experience that suits the present and future organization strategies. 2. Inducts outsiders with a new perspective to lead the company. 3. Infuses fresh blood at all levels of the organization. 4. develops an organizational culture that attracts competent people to the company 5. Searches or head hunt people whose skills fit the company. 6. Devises methodologies for assessing psychological Traits. 7. Seeks out non conventional development grounds of talent. 8. searches for talent globally & not just within the company 9. Designs entry pay that competes on quality but not on quantum. 10. Anticipates and find people for positions that do not exist yet.
Process of recruitment Step 1: I dentify Vacancy and Evaluate Need Recruitments provide opportunities to departments such as aligning staff skill sets to initiatives and goals and planning for departmental and individual growth. Although there is work involved in the hiring process, proper planning and evaluation of the need will lead to hiring the right person for the role and team. Conduct a Job Analysis if this position will be new to department. This will also help to identify gaps. Replacement When attrition occurs, replacing the role is typically the logical step to take. Before obtaining approval to advertise the position, consider the following: HUMAN RESOURCE MANAGEMENT 12MBA26
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As with a newly created position, it may be helpful to conduct a Job Analysis in order to tailor the position to what is currently required and to ensure proper classification. Your HR Classification Analyst can assist in reviewing and completing. Review the role and decide if there are any changes required as certain tasks and responsibilities performed by the previous person may not or should not be performed by the new person Carefully evaluate any changes needed for the following: Level required performing these tasks; considering the appropriate classification level. Be aware that changes in the classification of positions from represented to non represented will require union notice and agreement Tasks carried out by the previous employee Tasks to be removed or added if any of the work will be transferred within department Supervisory or lead responsibility Budget responsibility (if any) Work hours Step 2: Develop Position Description A position description also referred to as a job description is the core of a successful recruitment process. From the job description, interview questions, interview evaluations and reference checks questions are developed. A well-written job description: Provides a first and sometimes, lasting impression of the campus to the candidate Clearly articulates responsibilities and qualifications to attract the best suited candidates Improves retention as turnover is highest with newly hired employees. Employees tend to be dissatisfied when they are performing duties they were not originally hired to perform. Provides an opportunity to clearly articulate the value proposition for the role and the department and helps attract candidates to apply Optimizes search engine results by ensuring job postings rank highly in candidate search results when searching on-line Serves as documentation to help prevent, or defend against, discrimination complaints by providing written evidence that employment decisions were based on rational business needs HUMAN RESOURCE MANAGEMENT 12MBA26
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Identifies tasks, work flow and accountability, enabling the department to plan how it will operate and grow Assists in establishing performance objectives Is used for career planning and training by providing clear distinctions between levels of responsibilities and competencies required Is used as a benchmark to assist in ensuring internal and external equity Identify Duties and Responsibilities Prior to developing the job description the hiring manager should identify the following: 1. General Information 2. Position Purpose 3. Essential Functions 4. Minimum Requirements 5. Preferred Qualifications 1. General Information Basic position and pay information will need to be determined to assist with the development of the job description and job classification and for entering into the ATS. This information will be different for each position being recruited: Title Code The Title Code determines the Payroll Title, Personnel Program Code and Description, and the Bargaining Unit Code and Description fields in the ATS. Pay Grade/Step Working Title Market titles should be recognizable and common to various industries as most job seekers search for commonly referred to market titles when conducting on- line job searches Department Name Department Head Supervisor Name Title Codes and Full-Time Equivalent numbers of employees supervised Special Requirements and Conditions: HUMAN RESOURCE MANAGEMENT 12MBA26
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o Specific requirements job seekers must possess or complete in order to be hired (e.g. background check, valid drivers license, etc.) o BFOQs which are in compliance with UCRs applicable policies (e.g. physical or mental requirements) o Contact Staff Employment and Development for assistance with special requirements and conditions 2. Position Purpose Describes the departments functions, the units functions, and/or the organizational units functions. The statement should summarize the positions essential functions and its role in relation to supporting, administering, or managing the activities of the department, unit, or organizational unit. Posted Position Purpose -Includes a description of the role and its relation to the department, organization and University Includes the estimated duration for non-Career positions Lists the number of openings when there is more than one position being recruited Is written with a marketing angle to attract a talented diverse pool of applicants Is optimized for search engines Candidates conduct job searches by entering key words or phrases into search engines. Most candidates utilize job aggregators such as Google and Indeed versus searching individual company job posts. To ensure your position reaches the top of candidate search results, include key words such as career, job, skills and title of the position in the beginning of the posted position description (first 150 words). 3. Essential Job Functions Essential job functions describe the duties and responsibilities of a position. A job function is considered essential when the performance of the function is the purpose for the position. Typically, an essential function occupies a significant amount of time of the employees time and requires specialized skills to perform. By accurately describing the essential functions of the job, job seekers will have a clear understanding of the role and your expectations for performing them. When developing essential functions for the position the following should be noted: HUMAN RESOURCE MANAGEMENT 12MBA26
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Functions of the job which are critical for the position are arranged by importance and percentage of time spent Complexity level and authority for the role should be described to help attract the appropriate level of qualified candidates Essential tasks listed should be inter-related to the accomplishment of the essential function.
4. Minimum Requirements The minimum requirements or basic qualifications are those qualifications or criteria which was established in advance and advertised to potential applicants: Must be relevant and relate back to the duties and responsibilities of the job (e.g., should not list driving requirement if not part of responsibilities or duties of the job). Soft skills can be required qualifications (e.g., communication/collaboration) and will: o Vary among applicants o Cannot be ascertained in resume o Able to evaluate in interview Can be position/department specific (e.g. valid drivers license) Can be assessed by reviewing the resume Must be objective, non-comparative and business-related: should support the accomplishment of the essential function. For example, the essential function of event planning could require: o Organizational skills (to ensure all details are cared for) o Communication skills (to interact with vendors and guests) o Prior event planning experience Listing too many skills as requirements significantly limits your applicant pool and selection. A good rule of thumb is no more than 3-5 required skills depending upon the level of the position. HUMAN RESOURCE MANAGEMENT 12MBA26
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5. Preferred Qualifications Preferred qualifications are skills and experience preferred in addition to basic qualifications and can be used to narrow down the pool of applicants. These preferred skills, knowledge, abilities and competencies can describe a more proficient level at which the essential functions can be performed . Applicants who meet some or all preferred qualifications tend to have shorter assimilation time, reach full job competence faster and are able to take on advanced responsibilities sooner.
Step 3: Develop Recruitment Plan Each position requires a documented Recruitment Plan which is approved by the organizational unit. A carefully structured recruitment plan maps out the strategy for attracting and hiring the best qualified candidate and helps to ensure an applicant pool which includes women and underrepresented groups including veterans and individuals with disabilities. In addition to the positions placement goals the plan contains advertising channels to be used to achieve those goals. The recruitment plan is typically developed by the hiring manager in conjunction with the Departmental HR Coordinator. Placement goals identified are entered into the position requisition in the ATS. To ensure the most current placement goals are identified for the department and unit, Recruitment Plan Elements: A. Posting Period B. Placement Goals C. Additional Advertising Resources D. Diversity Agencies E. Resume Banks.
Step 4: Select Search Committee To ensure applicants selected for interview and final consideration are evaluated by more than one individual to minimize the potential for personal bias, a selection committee is formed. The hiring manager will identify members who will have direct and indirect interaction with the applicant in the course of their job. Each hiring manager should make an effort to appoint a search committee that represents a diverse cross section of the staff. A member of the committee will be appointed as the Affirmative Action and Compliance Liaison who will monitor the affirmative action aspects of the search committee. Under-represented groups and women are to have equal opportunity to serve on search committees and special efforts should be made to encourage participation. Departments that lack diversity in their own staff should consider appointing staff outside the department to search committees or develop other alternatives to broaden the perspective of the committee. For positions that are frequently recruited and utilize a search committee, the mix of search committee members should change frequently as well to minimize the risk of group think or collective bias. HUMAN RESOURCE MANAGEMENT 12MBA26
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The Hiring Manager will determine the size (no more than 6) and composition of the committee based on the nature of the position. It is highly recommended the committee members include: o At least one individual who has a strong understanding of the role and its contribution to the department o A job specialist (technical or functional) o Staff representative if position has supervisory responsibilities o An individual who will interact closely with the position and/or serves as a main customer Search committee members must ensure no conflict of interest in relation to the applicants under consideration and must never be individuals who may have interest in the position
Step 5: Post Position and I mplement Recruitment Plan Once the position description has been completed, the position can then be posted to the UCR career site via the ATS. Every effort should be made to ensure the accuracy of the job description and posting text. It is not advisable and in some instances, not possible to change elements of a posted position. The reason for this has to do with the impact a given change may have on the applicant pool. To post the position: The requisition is created by the Service Center Human Resources Coordinator or Departmental Human Resources Coordinator and approved by the Service Center HR Organizational Coordinator or Organizational HR Coordinator Once approved, the Departmental HR Coordinator or Service Center will review the requisition and route online to the HR Classification Analyst who will assign the classification The requisition is then routed to the HR Recruitment Analyst who will post the position Applications can be reviewed once the minimum number of posting days has been reached Internal candidates will apply through the regular application process and will be included in the candidate pool along with external candidates Talent Sourcing and Outreach HUMAN RESOURCE MANAGEMENT 12MBA26
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Step 6: Review Applicants and Develop Short List Once the position has been posted, candidates will apply. Candidates will complete an electronic applicant for each position (resume and cover letter are optional). Candidates will be considered Applicants or Expressions of Interest. All applicants must be reviewed and considered. Applicants are those who apply during the initial application period as described in Step 5. Candidates who apply after the initial application period will be considered expressions of interest and not viewable by the search committee. It is recommended that all search committee members review all Applicants to ensure more than one person assesses their qualifications and that individual opinion or biases are avoided. Each committee member may provide comments to each Applicants qualifications as they relate to the minimum requirements of the position. If the shortlist is not sufficiently diverse in light of the departments placement goals, will contact the Search Committee Chair or Chairs Associate to discuss how the pool might be diversified. One option might be to review the existing applicant pool to evaluate any additional qualified applicants prior to reviewing applicants who are expressions of interest status. If it is determined the expressions of interests are to be reviewed, the Search Committee Chair or Chairs Associate may move those in the expression of interest status to the applicant pool, in one or more batches on certain date(s) and time(s), as needed to achieve a sufficiently diverse and qualified pool. All expressions of interest candidates moved to the applicant pool are to be reviewed by the search committee.
Sources of recruitment,
Recruitment Sources: Broadly Divided into: a. Traditional Sources b. Modern Sources a. Traditional sources are divided in to a. Internal sources b. External Sources.
SOURCES OF RECRUITMENT
TRADITIONAL SOURCES MODERN SOURCES
Internal External Internal External
Present Permanent Campus Recruitment Employees Walk in HUMAN RESOURCE MANAGEMENT 12MBA26
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Employees Referrals Present Temporary / Casual Employees Private Employment Agencies / Consultants Reduces cost And Time Required for Consult in Head Hunting Body Shaping Retrenched/ Retired Employees Public employment exchanges Enhances Effectiveness of recruitment Mergers & Acquisition Dependents of deceased disabled Retired & Present Employees Professional associations Tele Recruitment Data Banks Out sourcing Casual Applicants Hr Supplies on Temporary or ADHOC basis Similar Organization / Competitors
Trade Unions.
. Industrial sources: are sources within organisatinal pursuits . External Sources: Are sources outside organisatinal pursuits.
WHY DO ORGANISATIONS PREFER INERNAL SOURCES EXTERNAL SOURCES Used as a Technique of Motivation Suitable candidates with skill, knowledge and talent etc availability Morale of Employees can be improved Selection without any preconceived notion or reservation Internal candidates suitability can be better judged than external candidates Cost of Employees reduced since they are put in the minimum pay scale Present employees loyalty, commitment, belongingness, security enhances Expertise, Experience & Excellence from other organsiation brought in An opportunity for advancement of present employees - A psychological need Human resources mix balanced with different background, Experience skill Etc Employees economic needs viz. Promotion, Higher income, are Satisfactorily met. Latest innovations, skills, creativeness, skill developed in the relevant field flows into Cost of selection can be minimized Existing will broaden their personality Cost of training, Orientation adaptability to the organization provided By inducting quality human resource, organization stands to get benefited Trade unions get satisfied. Tele / E-Recruitment: Benefits are Low cost per Candidate Reduction in time for recruitment Increase in Selection Ratio is more HUMAN RESOURCE MANAGEMENT 12MBA26
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Candidates per effort HR professionals can concentrate on strategic issues. Increased rate of collaboration among recruiting agencies. Increased Effectiveness and efficiency Of recruitment.
Cost-benefit analysis of recruitment. As seen above internal sources result in economy in the recruitment process. Also Tele/ E recruitment is a low cost approach External source cost effective if selected candidates accept minimum of pay scale.
Meaning and significance of selection,
Selection is the process of choosing among the candidates from within the organization or from the outside, the most suitable person for the current position for the future position Koontz
Objective of selection decision is to choose the individual who can most successfully perform the job from the pool
Significance Selection of personnel to man the organizations is a crucial complex and continuing function. Effective selection programme in an organization will make it to attain its goal effectively & to develop in a dynamic environment. If right personnel are selected, employee contribution and commitment will be at optimum level and employer employee relationship will be congenial. Also Remaining functions of personnel management become easier. Similarly a right person is selected, he will be a valuable asset to the organization & a wrong person will be a liability to the organization.
Process of selection Selection Procedure is not a single act but is essentially a series o methods or stages by which different types of information can be gathered through various selection techniques. At each step, facts may come to light which are useful for comparison with the job requirement & Employment specifications informations required to be collected are
Steps in scientific selection procedure / process (i) Job Analysis (ii) Recruitment (iii) Application form (iv) Written examination (v) Preliminary Interview (vi) Business Games (vii) Tests (viii) Final interview (ix) Medical Examination (x) Reference (xi) Line managers decision (xii) Job offer (xiii) Employment
(iii) (i) (iv)
(v)
(ii) (vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)
DEVELOPMENT BASES FOR SELECTION APPLICATION /RESUME/C.V/BIIO-DATA WRITTEN EXAMINATION PRELIMINARY INTERVIEW BUSINESS GAMES TESTS FINAL INTERVIEW MEDICIAL EXAMINATION REFERENCE CHEKS LINE MANAGERS DECISION JOB OFFER EMPLOYMENT ASSESS THE FIT BETWEEN THE JOB & THE CANDIDATE
JOB ANALYSIS HUMAN RESOURCE PLAN RECRUITMENT HUMAN RESOURCE MANAGEMENT 12MBA26
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SELECTION PROCEDURE Job Analysis: Is the basis for selecting the Right candidate. Organisations to finalise, job analysis, Job description, job specifications, & Employee specifications before proceeding to the next step of selection Human Resources Plan: Every company plans for the required number & kind of employees for a future date. This is the basis for Recruitment function. Recruitments: Process of searching for prospective employees and stimulating them to apply for jobs in an organisation. It is the basis for the remaining techniques of the selection. Development of Bases for selection: To select appropriate candidates from the Applicants pool, towards this the organisation may borrow / Adopt Techniques/ Bases. Application Form: A traditional method of securing information from the prospective candidates also can be used for screening candidates at Preliminary level. Information to be covered in an Application form is (i) Personal Background information (ii) Educational Attainments. (iii) Work experience (iv) Salary (v) Personal details (vi) References. Written Examination: Conducted for the qualified candidates after they are screened on the basis of application blanks enables to make sure the candidates ability in (i) Aptitude, (ii) Reasoning (iii) Knowledge in various disciplines (iv) General Knowledge, (v) English Knowledge.
Preliminary Interview: - To gather necessary information from the prospective applicants and to assess the applicants suitability to the job. - Information provided by candidates may be related to job or personal specifications regarding Education- Experience salary expected aptitude towards the job- Age Physical Appearance other physical requirements. - A process useful in eliminating undesirable/unsuitable candidates. - If candidate satisfy most of the areas of job requirements, he may be selected for further process. HUMAN RESOURCE MANAGEMENT 12MBA26
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- Also known as stand-up interviews or screening interviews. - Also useful in providing basic information about company to candidates Caution Care to be taken to ensure that desirable ones are not eliminated. BUSINESS GAMES: Are widely used as a selection techniques for selecting management trainees, Managerial personnel at junior, middle & Top positions Help to evaluate applicants in the areas of - Decision making - Identifying the potentialities - Handling the situation - Human relations skills etc Technique Adopted Generally Participants are placed in a hypothetical work situation and are requested to play the role situation in the game. The Hypothesis: The most successful candidates in the game will be the most successful ones on the job in the selection process. BUSINESS GAMES AND THEIR UTILITY (i) Case Study : Analytical job general or decision making skills (ii) Role Play : Human Relations skills (iii) In-Basket Method: Situational judgment, social relations (iv) Sensitivity : Degree of openness, concern to others Tolerance for Individual Differences. (v) Simulations : Encountering, Situation analysis skills. Group Discussion: A method where groups of successful applicants are brought around a conference table and are asked to discuss a case study or a subject matter. A technique used to secure further information regarding the suitability of the candidate for the job. Candidates in the group are required to analyse, discuss and alternative solutions and select a sound solution. A selection panel observes the candidates in the areas of HUMAN RESOURCE MANAGEMENT 12MBA26
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- initiating discussion Explaining the problem, - Soliciting unrevealing information based on given information and using common sense. - Keenness to observe discussion of others. - Clarifying controversial issues Influencing others - Speaking effectively -Cconcealing and mediating arguments among the participants and summarizing or concluding aptly. - Selection panel, based on the observation judges candidates skills and ranks them according t heir merit. - In some cases the selection panel may also ask the candidates to write the summary of the group discussion in order to know the candidates writing ability as well.
Selection techniques- tests, interviews and salary negotiation.
VARIOUS TYPES OF TESTS (APTITUDE, ACHIEVEMENT, SITUATIONAL, INTEREST, PERSONALITY) Psychological tests play a vital role in employee selection. IT is essential an objective and standardized message of sample of behavior from which inferences about future behavior and performance of the candidates can be drawn. Objectivity: Provides equal opportunity to all without any discrimination of sex caste etc. Standardisation: Of tests refer to uniformity of procedure in conducting the tests for all candidates Sample behavior: Refer to the sample of the total behavior of the prospective employee on the job. Psychological tests are classified into: (i) Aptitude Tests (iii) Situational Tests (v) Interest test (ii) Achievement tests (iv) personality tests (vi) Multidimensional Tests. (i) Aptitude Test a) Intelligent test (IQ) b) Emotional Quotient c) Skill tests HUMAN RESOURCE MANAGEMENT 12MBA26
(ii) Achievement Test a) Job Knowledge test b) work sample test
(iii) Situational Test a) group discussion test b) In-basket
(iv) Interest Test (v) Personality Test a) Objective tests b) Projective tests
(vi) Multidimensional testing.
(i) Aptitude Tests: Measures whether an individual has the capacity or latent bility to learn a given job if given adequate training. Aptitude divided into (a) General & mental ability (b) Intelligent & specific aptitude viz mechanical electrical, manipulative capacity etc. (a) Intelligent Tests: (IQ) A general measure of Intelligent quotient of a candidate. These tests measure - capacity of compensation Regarding word fluency also Digit spans, comprehension, vocabulary, picture, arrangement object assembly. Intelligent quotient: (IQ) = Mental Age Actual Age Candidates with High level of IQ can learn complicated issues easily or fast. For new technology Preferred
Emotional Quotient (EQ): Important criteria in the selection process.
EQ = Emotional Age Actual Age
Emotional involvement and commitment of the employees determine their contribution to the company rather than IQ c) Skill Tests: Measure the candidates ability to do a job perfectly and intelligently useful, to prefer artistic jobs, product design, Tool design, machine design etc. Assembly work, testing inspection. X 100 X 100 HUMAN RESOURCE MANAGEMENT 12MBA26
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d) Mechanical Aptitude Tests: Measure spatial visualization perceptual speed & knowledge of mechanical matter useful to select, Apprentices, skilled, mechanical employees. e) Psychomotor Tests: Measure abilities Technicians etc Manual Dexterity, Motor ability, Eye hand co ordination to select semi skilled workers for repetitive operations packing watch assembly etc. f) Clerical Aptitude Tests: Measure specific capacities involved in office work- spelling, computation, comprehension, copying, word measuring etc. ii) Achievement Tests: Measure value of specific achievement when experienced candidates are need by an organisation. a) Job knowledge Test: To test knowledge of a particular job, especially on fundamentals. b) Work sample tests: Absorption of actual work is given to candidate as a test and candidate asked to do it. E.g Lecturer is asked to deliver a lecture on MIS as work sample test. iii) Situational tests: Evaluate a candidate in a similar real life situation. Candidate either to cope with situation or solve critical situations of the job. a) Group discussion: Candidate is observed in the areas of initiating, Leading, proposing valuable Ideas, Communication skills, Coordinating & Concluding skills. b) In basket: Situational Test Administered through in basket, Candidate is provided with actual letters, Telephone, Telegraphic message, Reports & Requirements by various officers of the organization. Candidate is asked to take decision on various items based on the in Basket Information regarding Requirements in the memoranda. iv) Interest Tests: Are inventories of the likes and dislikes of the candidates in relation to job, Occupations, Hobbies, & Recreational activities, To evaluate Candidates in the job under selection & to find out which area of the job range / occupation the candidate is interested. Interest inventories are less faked & may not fluctuate after 30 years of age. v) Personality Tess: These tests prove to discover maturity & characteristics, mood expressed in traits as Self confidence, Tact, Optimism, Patience, Fear, Distrust Emotional Control, Decisiveness, Initiative- Sympathy, Conformity, Objective, Integrity, Judgment Dominance or Submission, Impulsiveness, stability and self confidence. a. Objective tests: Are suitable for group testing and can be scored objectives b. Projective Tests: Candidates are asked to project their own interpretation of certain standard stimulus situations. Basing on Ambiguous pictures, figures etc. Under these tests - Candidates can Fake and give socially acceptable answers. HUMAN RESOURCE MANAGEMENT 12MBA26
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- These test may not successfully predict job success. vi) Multi Dimensional Testing: Consequent to Globalization, competitiveness and customer orientation strategies these tests on multi skills are being given importance by most of the organizations. Organizations have to develop multi dimensional testing in order to find out whether the candidates possess a variety of skills or not. Candidates ability to integrate the multi skills and potentiality to apply the based on situational and functional requirements. E.g. L& G has realized that most of the company operations production, marketing- finance- Human Resources Management can be done by almost all employees. Expert are needed to rare cases In fact services of experts can be out sourced as such, L& G started selecting the candidates with multiskills and who can perform a variety of functions L & G developed Multi Dimensional Testing INTREVIREWS It is a method by which an idea about an applicants personality including his intelligence, breadth of interest and general attitudes towards life can be obtained by face to face contact Straus & Sayles - Interview is a powerful exchange of Ideas, the answering of questions and communications between two or more persons Interview follows testing This is the most essential step in the process of selection. In this step, the interviewer matches the information obtained about the candidates through various means to the job requirements and to the information obtained through its own observation during the interview Types of Employment interview are: (i) Preliminary Interview Informal Interview Unstructured Interview (ii) Core Interview Background information Interview Job and Probing Interview Stress Interview Group Discussion Formal & Structured interview Panel Interview Depth Interview HUMAN RESOURCE MANAGEMENT 12MBA26
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(iii) Decision Making interview (i) Preliminary Interview: a) Informal Interview: Can be conducted at any place by any person to secure the basic and non-job related information. Eg. A prospective candidate meeting the HR Manager to enquire about the vacancies or additional particulars in connection with employee (ADVT) - Advertisement. a) Unstructured Interview: This is unstructured, non planned non formatted. This is a free patterned interview, candidate is encouraged to talk freely on variety of subjects including his view, on his aspiration, values, expectations, and on politics. It helps an individual to open up his mind. A trained mind can depicter from such outbursts and different attributes of his personality. This requires trained and qualified persons to take interviews.
(ii) Core Interview: It is interaction between the candidate and the executive/ experts on various areas of job knowledge, skill, talent, etc Interview takes various forms I. Back Ground Information Interview: To collect additional information not available in application- Education, Domicile, Family, Health, Interest, Hobbies, Likes, Dislikes, Extracurricular Activities. II. Job and probing interview: To test the candidates job knowledge duties, Activities, Methods of doing the job, critical & problematic areas & Method of handling those areas etc. III. Stress Interview: Aim is to test the job behavior and level of withstanding stress, strain. E.g: Interrupt answer from Applicant, Criticize his opinion, questioning in unrelated areas, keeping silent for long time To be handled with skill care, not valid always since it does not reflect true behavior under such situations. IV. Group Discussion Interview: a) Group interview: Candidates brought into one room, Interview room- And are interviewed one by one, saves executive time, and gives a fait amount of the objectivity of the interview to candidates. b) Group Discussion method: One topic is given for discussion to the candidates who assemble in one room and asked to discuss the topic in detail. Interviewer judges on Initiative, dynamism inter personal skills, Presentation, Leading comprehension, collaboration. May not reflect on the candidates Background skills. V) Formal and Structured Interview: A pre planned structured in advance, Experts are allotted different areas & Questions to be asked in a particular sequence. HUMAN RESOURCE MANAGEMENT 12MBA26
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VI) Panel Interview: A panel of experts interview each candidate, judges his performance individually and prepares consolidated judgement. Conducted for Middle/ Senior level managers.
VII) Depth Interview: Examined extensively in core areas of job skills and knowledge in depth. Applicable for specialist jobs. III) Online interview: Global companies do this to be cost effective DECISION MAKNG INTERVIEW: After experts & line mangers interview candidates, the head of the Department /section concerned interview/ examine candidates interest in the job organization, Reaction / Adaptability to the working conditions, career, planning, promotional opportunities, work adjustment allotment etc. Personnel Manager interview to find out Reaction / Acceptance Regarding Salary, Allowances, benefits, promotions & Opportunities etc Both HOD and HR Manager decide jointly & Inform Chairman about candidates performance and their ranks in the interview. Organizations look for positive attitude, pro active qualities, than skills and knowledge. Interview process: Major steps are grouped into four categories as shown below: Steps in interview process
(a) Preparation for Appropriate type of interview the Interview The Areas to be tested
Type & Number of Interviews
Review the information
(b) Conduct the Open the Interview Interview Get Complete & Accurate Information Record observation & Impressions
Guide the Interview
Check the Success of the Interview (c) Close the Interview
(d) Evaluate Interview Results.
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(a) Preparation for the Interview: Advance preparation for Interview is essential as it permits focusing its coverage on the vital aspects and it helps the interviewer to remember and absorb many impressions and facts. Choosing appropriate type of Interview: Based on Job requirements and the nature of interviews. Areas to be used : Knowledge, Skill areas, to be examined through interviews Type and Number of Interviews : Interviewers should be selected based on personal characteristics, Technical, Competence, Initiative, Common sense, General Smartness, Ability, To inspire, Confidence, Capacity, To work in team, Potential for growth required from candidates. Interviews may be drawn from Personnel Specialists, Line managers Concerned, Experts from discipline concerned from Academicians, Practioners, and Psychologists, to include in team. Psychologists may be competent interviewer if he has got knowledge of job requirements & organizational interest. Psychologists may be effective, if they are qualified, experienced and trained Psychologists views may form as additional source of information than a deciding factor
Number of interviews Depend on: Number of areas to be covered by the interviewer. Number of candidates to be interviewed Time available. Review of the Information: Collected Through selection methods to be checked thoroughly regarding Accuracy & Validity Suitability & Review number of positions Length of time held in each of the past jobs Nature of position in the previous employment Growth in the past employment Acquainting & about the appliance Find out discharge etc through breaks
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(b) Conducting the interview The selection of competent interviewers, Training and Developing them is an Essential step. (i) OPEN THE INTERIVIEW: Interviewers to open the interview with a friendly voice & Appearance to Establish a rapport & confidence of the Candidates. (ii) Get Complete and accurate information: - The interviewer to get full information relating to skill, knowledge, attitude, and Trait of candidate the approach suggested are - Use language clear to the Interviewer - Ask straight and direct questions to avoid ambiguity - To make remarks favourable/ Un favouable about the applicants motive to obtain truthful information. - To frame questions in such a way the candidate answer elaborately (iii) Recording of observation and impressions: By the interviewer in course of the interview with a view to manage the information system for evaluating candidates suitability at a later stage.
(iv) Guide the Interview: To get complete & Reliable information - To have sufficient discussion not too much or too less on a specific topic. - To lead the applicant tactfully towards interview goal - To avoid applicant giving known information avoid relevant needed data Major step in interview is to check the success of the interviewer in conducting the Interview. (v) Check success of the interviewer: Through following Making favourable impression on candidate at start of interview Avoid making judgement at the beginning. Putting the candidate at ease. Giving chance for further discussion Asking questions at the right time, clearly at appropriate language Avoiding unwanted interference. Talking minimum need based Guiding interview. Obtaining & Relieving & Adequate information Follow-up leads. Taking notes. Crating good impression throughout Avoiding expression of approval / Disapproval of any attitude Giving opportunity to candidates to ask questions Giving the candidates a feeling of fair conduct of interview HUMAN RESOURCE MANAGEMENT 12MBA26
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Closing interview pleasantly with an indication. (c) Close the interview: is an important as its commencement and it should end pleasantly. At an appropriate time and the interviewer to indicate the sign of closure of Interview.
(d) Evaluate Interview results: Should follow immediately after closure of interview. Proper weightage given to attribute which are pre determined during preparatory phase. Evaluation done by grade & marks. List prepared as per Ranking based on marks / grade as decided by the policy of the company
Salary negotiation
Preparing for a Successful Negotiation Depending on the scale of the disagreement, some preparation may be appropriate for conducting a successful negotiation. For small disagreements, excessive preparation can be counter-productive because it takes time that is better used elsewhere. It can also be seen as manipulative because, just as it strengthens position, it can weaken the other person's. However, if need to resolve a major disagreement, then make sure you prepare thoroughly. Using our free worksheet, think through the following points before starting negotiating: Goals Trades Alternatives Relationships Expected outcomes The consequences Power Possible solutions
Style is Critical For a negotiation to be 'win-win', both parties should feel positive about the negotiation once it's over. This helps people keep good working relationships afterwards. This governs the style of the negotiation histrionics and displays of emotion are clearly inappropriate because they undermine the rational basis of the negotiation and because they bring a manipulative aspect to them. Despite this, emotion can be an important subject of discussion because people's emotional needs must fairly be met. If emotion is not discussed where it needs to be, then the agreement reached can be unsatisfactory and temporary.
Meaning and significance of appointment, Meaning Once the offer of employment is made after the selection process, and such offer has been accepted, the next logical step is to place the individual on the job. HUMAN RESOURCE MANAGEMENT 12MBA26
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Appointment is the determination of the job to which an accepted candidate is to be assigned and it assignment to the job. It is a matching of what the supervisor has reason to think, he can do with the job demands (job requirements), it is a matching of what he imposes (in strain, working conditions) and what he offers in the form of pay roll, companionship with others, Promotional possibilities etc.
Significance Creating interest in his job and the company Providing basic information about working arrangements Indicating standard of performance and behavior expected of him informing of training facilities. Creating feeling of social security
Process of appointment,
Legal aspects of employment contract,
The Terms of Employment (Information) Acts 1994 and 2001 provide that an employer is obliged to provide an employee with a written statement of terms of employment within the first two months of the commencement of employment. However, this requirement does not apply to an employee who has been employed for less than a month. The statement of terms must include the following information: The full name of employer and employee COLLECT DETAILS ABOUT THE EMPLOYEE CONSTRUCT THE EMPLOYEES PROFILE MATCH BETWEEN SYB GROUP PROFILE AND INDIVIDUALS PROFILE COMPARE SUB GROUP PROFILE TO JOB FAMILY PROFILE MATCH BETWEEN JOB FAMILY PROFILES AND SUB GROUP PROFILES ASSIGN THE INDIVIDUALS TO THE JOB FAMILY ASSIGN THE INDIVIDUAL TO SPECFIC JOB AFTER FURTHER COUNSELLING AND ASSIGNMENT
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The address of the employer The place of work The title of job or nature of work The date the employment started If the contract is temporary, the expected duration of the contract If the contract of employment is for a fixed term, the details Details of rest periods and breaks as required by law *The rate of pay or method of calculation of pay The pay reference period for the purposes of the National Minimum Wage Act 2000 *Pay intervals *Hours of work *That the employee has the right to ask the employer for a written statement of his/her average hourly rate of pay as provided for in the National Minimum Wage Act 2000 *Details of paid leave *Sick pay and pension (if any) *Period of notice to be given by employer or employee *Details of any collective agreements that may affect the employees terms of employment * In the case of these items instead of giving each employee the details in writing, the employer may refer an employee to other documents, for example, a pension scheme booklet or a collective agreement, provided that the employee has easy access to such documents. The statement of terms must indicate the reference period being used by the employer for the purposes of the calculation of the employee's entitlements under the National Minimum Wage Act 2000. (Under that Act the employer may calculate the employee's minimum wage entitlement over a reference period that is no less than one week and no greater than one month). Disciplinary and grievance procedures The Labour Relations Commission has published the Code of Practice: Grievance and Disciplinary Procedures (pdf)which states that employers should have written grievance and disciplinary procedures and they should give employees copies of these at the start of their employment. Under the Unfair Dismissals Acts 1977-2007 employers are required to give the employee in written notice of the procedures to be followed before an employee is dismissed. This must be done within 28 days of entering the contract of employment. Specific provisions in contracts of employment In recent times, some employers are adding in specific provisions in contracts of employment that limit the ability of employees to work in a certain sector, with certain suppliers, clients, for a HUMAN RESOURCE MANAGEMENT 12MBA26
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period following termination of employment. (For example, it may specifically state that the employee cannot work in a certain sector, with or for suppliers or clients of the former employer.) There is nothing in employment law that strictly forbids this, but there is no provision in employment law that allows this either. Probationary period The contract can include a probationary period and can allow for this period to be extended. The Unfair Dismissals Acts 1997-2007 will not apply to the dismissal of an employee during a period at the beginning of employment when he/she is on probation or undergoing training provided that: the contract of employment is in writing the duration of probation or training is one year or less and is specified in the contract. The above exclusion from the Acts will not apply if the dismissal results from trade union membership or activity, pregnancy related matters, or entitlements under the maternity protection, parental leave, adoptive leave and carer's leave legislation. Changes to contract of employment Changes to contract of employment can occur due to a change in the law, but otherwise, changes must be agreed between employer and employee. The requirement for both the employer's and the employee's consent to changes in the terms of the contract is part of contract law.
Joining formalities
1) Grade Sheet check: Most basic formality s to check all the documents. This process is carried on in two phases, i.e. pre joining and post joining. In pre joining phase, you are asked to upload the scanned PDF files of detailed mark/grade sheets right from 10 th std. up to the Bachelors or masters degree including semester results. Post joining, all the grade sheets are verified against the originals carry along. Make it sure to carry same documents that are uploaded. 2) PAN Card and Passport: You are advised to get a PAN card and passport legally processed and availed from the governing bodies responsible, as these two plays a vital role in identification and work scalability. 3) National Skills Registry (NSR) Registration: NASSCOM has come up with an initiative to keep a record of the tech work force in the country, which allows to build up a profile based on HUMAN RESOURCE MANAGEMENT 12MBA26
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confirmed qualification, finger prints and reg. No. this long term project gives one a facility to propose her/himself via this profile to IT companies worldwide. 4) Medical Reports: Getting an overall medical checkup certificate is a vital part of joining formalities in companies. The test reports from any registered practitioner have an expiry date. As enter an organization, need to be 100% fit but the major reason behind this are provisions of health insurance, for which health needs to be tested and recorded to device policy and cover by the management. 5) Criminal background confirmation: A few organizations even ask for a no criminal background document from the concerned authorities. 6) Experience Letter(if any) : An experience letter from the previous place of work needs to be authentic up to the duration of work, nature of job, projects undertaken etc. as there is a separate team that checks and confirms information with previous employer. 7) Traveling allowance: If company provides a one time traveling allowance, keep the tickets intact so that can submit them to generate a claim later. 8) Salary Bank Account: Most of the Companies do-not bar to open salary account with bank of choice. If company has no such restriction, could get bank account documents done with desired bank during the joining or initial days post joining. Later when SAP account gets done in the company records, could update account details there.
Induction
Induction is the process of receiving and welcoming an employee when he first joins a company and giving him the basic information. He needs to settle down quickly and happily and start the assigned work Objective of induction: Putting the new employee at ease Creating interest in his job and the company Providing basic information about working arrangements Indicating standard of performance and behavior expected of him informing of training facilities. Creating feeling of social security HUMAN RESOURCE MANAGEMENT 12MBA26
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Minimizing reality shock: i.e the incompatibility caused between the employee expectations, actually what the company provides/offers- regarding pay, Benefits, Status, working & conditions, Responsibility, opportunity for growth, innovations, creative ideas etc. INDUCTION PROCESS: The following steps are suggested as stages of induction process. Reporting for duty at a certain place to the Head of Department concerned The Head of the Department welcomes the New Employee. Organisational / Branch Head introduce to important employees and describes about the organistion. Department head introduces to all employees of department and Goals of the Department etc. Supervisor concerned introduces to co workers. In that section / Unit to the work/Job, Material/Machine. Providing information, Duties, responsibilities, Rights, facilities, Provisions, welfare measures etc. Supervisor clarifies about the doubts of the New Employee about the work. ADVANTAGES OF INDUCTION i) First impression matters: A good deal and results in fewer turnovers. ii) Newcomer adjusts himself to the work quickly, and it saves time of the Supervisor. iii) Reduce employees dissatisfaction and grievances. iv) Develops a sense of belongingness and commitment.
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Module 4 (8 Hours) Training and development
Meaning and significance of training and development . Meaning Training : Training is a learning process which seeks relatively a permanent change in behaviour that occurs as a result of experience. - (S.P.ROBBINS) Training is the art of increasing the knowledge and skills of an employee for doing a particular job - (TRIPATHY) Development: Development is the process of transition of an employee from a lower level of ability, skill & knowledge to that of higher level. This transition is influenced by education, training, work experience and environment.
This will improve value of individual employees in terms of his self development, career growth & contribution to organisation.
Development covers not only those which bring about growth of performance, but also those which bring about growth of personality, help individuals in the progress towards majority & actualization of their potential capacities, so that they become not only good employees but better men women-(MEMORIAL)
Significance
Improves profitability & profit orientation with positive attitude Improves job knowledge & skills at all levels of organisation Improves morale of workforce, helps people identify organisation goal Improves relationship between boss & subordinates AIDS in organizational development, helps to prepare guideline for work AIDS in understanding & carrying out organizational policies MIS at all department for future needs Organisation becomes more effective in decision making & problem solving AIDS in developing, leadership skills, motivation, loyalty, better attitude AIDS in increasing productivity & quality work Help in keeping cost down production, personnel & Administration Develops a sense of responsibility to the organisation Improves labour management relations Reduces outside consulting costs by using internal competency Stimulates preventive management as opposed to putting out fires Creative appropriate climate for growth & communication Helps employee adjust to changes Aids in handling conflicts, thereby helping to prevent stress & tension
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Process of training development, The Training Process The model below traces the steps necessary in the training process: Organizational Objectives Needs Assessment Is There a Gap? Training Objectives Select the Trainees Select the Training Methods and Mode Choose a Means of Evaluating Administer Training Evaluate the Training
Needs analysis, Training needs can be assessed by analyzing three major human resource areas: the organization as a whole, the job characteristics and the needs of the individuals. This analysis will provide answers to the following questions: Where is training needed? What specifically must an employee learn in order to be more productive? Who needs to be trained? Begin by assessing the current status of the company how it does what it does best and the abilities of employees to do these tasks. This analysis will provide some benchmarks against which the effectiveness of a training program can be evaluated. Firm should know where it wants to be in five years from its long-range strategic plan. Second, consider whether the organization is financially committed to supporting the training efforts. If not, any attempt to develop a solid training program will fail. Next, determine exactly where training is needed. It is foolish to implement a company-wide training effort without concentrating resources where they are needed most. An internal audit will help point out areas that may benefit from training. Also, a skills inventory can help determine the skills possessed by the employees in general. This inventory will help the organization determine what skills are available now and what skills are needed for future development. Also, in today's market-driven economy, would be remiss not to ask customers what they like about business and what areas they think should be improved. In summary, the analysis should focus on the total organization and should tell (1) where training is needed and (2) where it will work within the organization. HUMAN RESOURCE MANAGEMENT 12MBA26
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Once have determined where training is needed, concentrate on the content of the program. Analyze the characteristics of the job based on its description, the written narrative of what the employee actually does. Training based on job descriptions should go into detail about how the job is performed on a task-by-task basis. Actually doing the job will enable to get a better feel for what is done. Individual employees can be evaluated by comparing their current skill levels or performance to the organization's performance standards or anticipated needs. Any discrepancies between actual and anticipated skill levels identifies a training needed Training design,
The first step in the design of training involves an assessment of training needs. The assessment comprises - Observing workers performing normal duties Interviewing workers and others Studying routine reports or performance reviews, along with job descriptions Identifying performance problems
The second step involves defining the training programs learning objectives. The learning objectives, which are derived from the needs assessment, specify the observable, measurable actions that each learner will be able to demonstrate as a result of participating in the training activities. The third step is the creation and implementation of a training program to improve performance, taking into account the experience and educational levels of the personnel and the time and resources available for training. Options range from short courses to long-term placements in academic institutions in the country, in the region, or overseas, and nonclassroom-based interventions, such as on-the-job training, coaching, and mentoring. All options must be weighed against the immediate operational needs of the program or institution, because facilities may not have enough personnel to operate when staff members go for training. Training implementation
Implementation
Pilot Test & revision. Most revisions are refinements of execution points and time frames Trainthetrainer & revision. Adjustments made are very minor at this stage, usually limited to delivery execution details or typographical edits. HUMAN RESOURCE MANAGEMENT 12MBA26
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Regional / Divisional / Areabased deployment. For smaller organizations this is a single step, a nd coordination requirements are low.
Training evaluation
The specification of values forms a basis for evaluation. The basis of evaluation and the mode of collection of information necessary for evaluation should be determined at the planning stage. The process of training evaluation has been defined as "any attempt to obtain information on the effects of training performance and to assess the value of training in the light of that information." Evaluation leads to controlling and correcting the training programme. Hamblin suggested live levels at which evaluation of t rai ni ng can take place, viz. reactions, learning, job behaviour, organisation and ultimate value. (See Box 9.11).
Box 9.11 How to Make Training Effective Determine training needs through job description, performance appraisal forms and potential appraisal discussions. Prepare a training calendar in discussion with managers. Training programmes should be well defined specific objectives. Nominate the employees for training based on a need for training. Trainers should be qualified and experienced, and preferably internal.
(i) Reactions: Training programme is evaluated on the basis of the trainee's reactions to the usefulness of coverage of the matter, depth of the course content, method of presentation, teaching methods etc. (ii) Learning: Training programme, trainer's ability and trainee abilit y are evaluated on the basis of quantity of content learned and time in which it is learned and the learner's ability to use or apply the content he learned. (iii) Job Behaviour: This evaluation includes the manner and extent to which the trainee has applied his "naming to his job. (iv) Organisation: This evaluation measures the use of training, learning and change in the job behaviour of the department/organisation in the form of increased productivity, quality, morale, sales turnover and the like. (v) Ultimate Value: It is the measurement of the ultimate result of the contributions of the training programme to the Company goals like survival, growth, profitability etc. and to the individual goals like development of personality and social goals like maximising social benefit.
The various methods of training evaluation are: (i) Immediate assessment of trainees' reaction to the programme. (ii) Trainees' observation during the training programme. (iii) Knowing trainees' expectations before the training programme and collecting their views regarding the attainment of the expectations after training. (iv) Seeking opinion of the trainee's superior regarding his/her job performance and behaviour before and after training. (v) Evaluation of trainee's skill level before and after the training programme (vi) Measurement of improvement in trainees on the job behaviour. HUMAN RESOURCE MANAGEMENT 12MBA26
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(vii) Examination of the testing system before and after sometime of the training programme. (viii) Measurement of trainee's attitudes after the training programme. (ix) Cost-benefit analysis of the training programme. (x) Seeking opinion of trainee's colleagues regarding his/her job performance and behaviour. (xi) Measurement of levels in absenteeism, turnover, wastage/scrap, accidents, breakage of the machinery during pre and post period of the training programme. (xii) Seeking opinions of trainee's subordinates regarding his/her job performance and behaviour.
Methods of training -on the job methods and off the job methods
On-The-Job Training Methods This type of training, also known as job instruction training, is the most commonly used method. Under this method, the individual is placed on a regular job and taught the skills necessary to perform that job. The trainee learns under the supervision and guidance of a qualified worker or instructor. On-the-job training has the advantage of giving firsthand knowledge and experience under the actual working conditions. While the trainee learns how to perform a job, he is also a regular worker rendering the services for which he is paid. The problem of transfer of trainee is also minimised as the person learns on-the-job. The emphasis is placed on rendering services in the most effective manner rather than learning how to perform the job. On-the-job training methods include job rotation, coaching, job instruction or training through step-by-step and committee assignments.
(i) Job Rotation: This type of training involves the movement of the trainee from one job to another. The trainee receives job knowledge and gains experience from his supervisor or trainer in each of the different job assignments. Though this method of training is common in training managers for general management positions,Jrainees can also be rotated from job to job in workshop jobs. This method gives an opportunity to the trainee to understand the problems of employees on other jobs and respect them.
(ii) Coaching: The trainee is placed under a particular supervisor who functions as a coach in training the individual. The supervisor provides feedback to the trainee on his performance and offers him some suggestions for improvement. Often the trainee shares some of the duties and responsibilities of the coach and relieves him of his burden. A limitation of this method of training is that the trainee may not have the freedom or opportunity to express his own ideas.
(i i i ) Job Instruction: This method is also known as training through step by step. Under this method, the trainer explains to the trainee the way of doing the jobs, job knowledge and skills and allows him to do the job. The trainer appraises the performance of the trainee, provides feedback information and corrects the trainee.
(iv) Committee Assignments: Under the committee assignment, a group of trainees are given and asked to solve an actual organisational problem. The trainees solve the problem jointly. It develops team work. (See Box 9.6 for examples on training).
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Off-the-Job Methods
Under this method of training, the trainee is separated from the job situation and his attention is focused upon learning the material related to his future job performance. Since the trainee is not distracted by job requirements, he can place his entire concentration on learning the job rather than spending his time in performing it. There is an opportunity for freedom of expression for the trainees. Companies have started using multimedia technology and information technology in training (See Box 9.7 and Box 9.8) Off-the-job training methods are as follows:
(i) Vestibule Training: In this method, actual work conditions are simulated in a class room. Material, files and equipment which are used in actual job performance are also used in training. This type of training is commonly used for training personnel for clerical and semi-skilled jobs. The duration of this training ranges from days to a few weeks. Theory can be related to practice in this method.
(ii) Role Playing: It is defined as a method of human interaction that involves realistic behaviour in imaginary situations. This method of training involves action, doing and practice. The participants play the role of certain characters such as the production manager, mechanical engineer, superintendents, maintenance engineers, quality control inspectors, foremen, workers and the like. This method is mostly used for developing inter-personal interactions and relations.
(iii) Lecture Method: The lecture is a traditional and direct method of instruction. The instructor organises this material and gives it to a group of trainees in the form of a talk. To be effective, the lecture must motivate and create interest among the trainees. An advantage of the lecture method is that it is direct and can be used for a large group of trainees. Thus, costs and time involved are reduced. The major limitation of the lecture method is that it does not provide for transfer of training effectively. (iv) Conference or Discussion: It is a method in training the clerical, professional and supervisory personnel. This method involves a group of people who pose ideas, examine and share facts, ideas and data, test assumptions and draw conclusions, all of which contribute to the improvement of job performance. Discussion has the distinct advantage over the lecture method, in that the discussion involves two-way communication and hence feedback is provided. The participants feel free to speak in small groups. The success of this method depends on the leadership qualities of the person who leads the group.
(v) Programmed Instruction: In recent years, this method has become popular. The subject- matter to be learned is presented in a series of carefully planned sequential units. These units are arranged from simple to more complex levels of instruction. The trainee goes through these units by answering questions or filling the blanks. This method is expensive and time consuming.
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Module V Compensation and benefits
Meaning and significance of compensation and benefits
Compensation and Benefits in wages and salaries are the most important single element which influence continued retention of employees. This helps to attract, develop, and promote employees to meet individual and organizations objectives. Motivates and boost employee morale. Generally administration need to to be Fair and appear to be fair Wages and salaries administration form part of compensation . Wage survey, Job Evaluation,. wage fixation for individuals. . Wages incentive schemes, Hiring Benefits, compensation package for executives System of payment.
Compensation Benefits Wages, salaries, Bonus, Fringe Benefits, They are the money given to employees towards their services.
Definition: Wages: The Remuneration paid by the employer for the services of Hourly, Daily, Weekly & fortnightly Employees. Also means that Remuneration paid to production, Maintenance or Blue collar employees.
Salary: The Remuneration paid to the Clerical and Managerial personnel employed on Monthly or Annual Basis.
Wages / Salary: The Direct Remuneration paid to an Employee compensating the services to an organization
NEED FOR GOOD SALARY ADMINISRTATION:- (Objectives)
To Retain the Present Employees. To secure Internal / external security. - Similar wages for similar jobs in comparable organization To Maintain labour and administrative codes To ensure desired behavior. To comply with wage Legislation. To exhibit Public as Progressive Employers. To pay in line with the content and Difficulty To Simplify collective bargaining - Procedures and Negotiations. To promote or organization growth prospects / Feasibility.
Basic salary, allowances, incentives, perks, and benefits
Minimum Wage HUMAN RESOURCE MANAGEMENT 12MBA26
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Minimum wage is the one which provides not merely for bare sustenance of life, but also for the preservation of the efficiency of the worker. For this purpose, the minimum wage must also provide for some measure of education, medical requirements and amenities. Minimum wage may be tied by an agreement between the management and the workers, but is usually determined through legislation. This is more so in the unorganised sector where labour is unionised. In the fixation of minimum , wages, besides the needs of workers, other factors like ability of the concern to pay, nature of the jobs, and so on, are also considered.
Fair Wage Fair wage is understood in two ways. In a narrow sense, wage is fair if it is equal to the rate prevailing in the same trade and in the neighborhood for similar work. In a wider sense, it will be fair if it is equal to the predominant rate for similar work throughout the country and for trades in general. Irrespective of the way in which fair age is understood. It can be fixed only by comparison with an accepted standard wage. Such a standard can be determined with reference to those industries where labour is well organised and has been able to bargain well with the employers.
Living Wage
Living wage is a step higher than fair wage. Living wage may be described as one which should enable the wage earner to provide for himself/herself and his/ her family not only the bare essentials of life like food, clothing and shelter, but a measure of frugal comfort including education for children; 'protection against ill health; requirements of essential social needs; and/or measure of insurance against the more important misfortunes including old age. A living wage must be fixed considering the general economic conditions of the country. The concept of living, wage, therefore, varies from country to country. In the more advanced countries, living wage itself forms the basis for the minimum wage.
In India, minimum wage is determined mainly for sweated industries under the provisions of the Minimum Wages Act, 1948. Fair wage is fixed for other industries considering prevailing rates of wages, productivity of labour, capacity of the employer to pay, level of national income and other related factors.
Tribunals, awards and wage boards play major role in fair wage fixation. Many people are of the opinion that living wage is " luxury for a developing country like India and can therefore be deferred
Employee remuneration has different connotations for different people. For an employee, it means status and standard of living for the employer it adds to the cost; and to the HRM administration of remuneration is an important activity.
Remuneration comprises both financial as well as non-financial benefits. Only financial benefits are considered in this chapter.
Concepts of wages: HUMAN RESOURCE MANAGEMENT 12MBA26
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While Evolving, wage policy, three concepts of wages, Namely, (i) Minimum wages, (ii) Fair wages, (iii) Living wages are generally considered. These are broadly based on the needs of the workers, capacity of the employee to pay, General Economic conditions prevailing.
Factors affecting wages/ Salary levels.
(i) Remuneration in comparable industries. (ii) Firms ability to pay (iii) Cost of living (iv) Productivity (v) Union pressure and strategies (vi) Government legalizations - Minimum wages act 1948 provides the following 1. Minimum wages in certain employment 2. Minimum Time rate 3. Minimum price rate 4. Guarantee time rate 5. Overtime rate 6. Basic pay, D.A Act provides for revision of minimum wages at fixed intervals.
Management evaluates the jobs with a view to know the worth of the job and determine the wages or salary.
An attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individuals abilities or performance of workers concerned. -International Labour Organisation
A process of determining the relative worth of the various jobs within the organization, so that differential wages may be paid to jobs of different worth -Wendell . French
The process of analyzing and assenting the contents of the job, in order to place them in an acceptable rank order which can then be used as basis for a remuneration system. Simply a technique designed to assist in the development of new pay structures by defining relatives between jobs on a consistent and systematic basis -British Institute of Management 1970
Structured pay scales of the government sector HUMAN RESOURCE MANAGEMENT 12MBA26
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Wage Salary Survey:
Wage survey forms in important process of wages and salaries administration, the objective is to gather data and analyse them for getting following information which are essential to take policy decisions by the organization for the wages. - Growing wage rates for different jobs - Prevailing practices of wages in various types of industries - Variation of wage rates between geographical areas for similar jobs. - Identification of wage leaders viz companies which pay higher rates than most others.
Steps involved in wage survey while carryout out: Select Industry Select area of geographical locations Identify key jobs which are common in most firms Obtain job Descriptions of the key jobs selected. Prepare schedule of information via. Hourly wage or daily wage. Collect Data based on interviews, questionnaire Techniques etc Compute data on wages and salaries for each job Prepare summary of findings Make recommendations.
SALARY STRUCTURE. WAGES/ SALARY FIXATION FORMS PART OF THE SALARY / WAGE PAYMENT. PROCESS AS SHOWN BELOW ( 1 TO 8 STAGES)
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1 3
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5
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8
WAGES LEGISLATION JOB DESCRIPTION WORK / JOB STANDARD WAGES SURVEY WAGES LEVEL JOB EVALUATION WAGES STRUCTURE WAGE FIXTATION INCENTIVE PAYMENTS WAGE PAYMENTS JOB DESCRIPTION MERIT RATING (EVALUATION) WAGES INCENTIVE PLAN HUMAN RESOURCE MANAGEMENT 12MBA26
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SALARY / WAGE FIXATION
THE MAJOR FACTOR THAT INFLUENCE are:
prevailng wage rates ability to pay producitivity cost of living attraction and retentionof employees
Others Govt. Legislation Labour Market supply / Demand Job Requirement Union Vs Management Management attitude Social / Psychological factor.
Cost to company approach of the private consultant
Cost to company is the return to the employees service in terms of remuneration paid to the white collar employees working in multinational company and private sectors
It refers to all plans that provide extra pay for extra performance in addition to regular wages for job -Hummela Nickerson wage incentives are extra financial motivation. They are designed to stimulate human effort by rewarding the person over and above the time rated remuneration, for the improvements in the present or targeted results. National Commission of Labour. OBJECTIVES: (i) To improve profits of a firm trough a reduction in the unit cost of labour and materials or both.
(ii) To avoid / minimize additional capital investment for the expansion of production capacity.
(iii) To improve /increase a workers earnings without entering into higher wage rate structure.
(iv) To use wage incentive as a useful tool for securing better utilization of manpower, better production scheduling and performance control effective personnel policy.
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Important Wage Incentive Plans:
(i) Halsey Premium Plan: A time saving bonus plan based on daily wage & Piece wage with modification. (ii) Halsey weir premium plan: Similar to (i) above except bonus at 50% of time saved. i.e incentive = x time saved x hourly rate. (iii) Rowan Premium Plan: Incentive = Time saved x time taken x hourly rate Time allowed (iv) The 100% premium Plan: Task standards set by time study E.g For Rs.10/Hr for 10hrs job, cone in 8 hrs, Incentive+earnings=8x10+(10-8)x10=80+20=100 (v) The Bandeaux point plan: Used where more accurate performance standard every job is expressed as BEDEAXminutes & payment in proportion to minutes saved. (vi) Taylors Differential piece rate plan Aim(1): To give sufficient incentive & make them work to capacity Aim (ii): Remove fear of wage cut (Vii) Merrics Multiple Piece rate plan: Based on low piece rate of slow worker & high piece rate for higher production. Divided into 3 slabs i.e (i) Upto 83%, +20% time rate (ii) upto 83 to 100% + 10% time rate (iii) 100% above standard time (% of time taken of standard time) (viii) GNATT Task plan Three stage of payment (i) Below standard performance, Minimum wage is guaranteed. (ii) at standard performance the standard wage +20% incentive (iii) when standard wage is exceeded Higher Piece rate (ix) Emerson efficient plan Standard time for standard job: No incentive upto 2/3 level of efficiency after attaining 2/3% level a nominal incentive, 2/3 to 1 level 20% incentive, at 1.2- 40% incentive (x) Co-partnership system Apart from standard wages Performance + overall operation efficiency based sharing incentive. (xi) Acceleration premium systems For low & average output above standard a small increment in earning substantially a large output will get proportion to the increase
PROFIT SHARING. BONUS CONCEPTS
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Profit Sharing: Is an arrangement by which employees receive a share. Fixed in advance of the profits. Prof. Seager
An arrangement (formal /informal) freely entered into, by which an employee receives a share fixed in advance of the profits. International Cooperative Congress -1889 (Paris) Profit sharing involves determination of an organisations profits at the end of fiscal year and the distribution of a percentage of the profits to workers qualified to share the earnings. Enable worker take more responsibility and improve productivity to results in higher profits.
FEATURES TYPES OF PROFITS SHARING THEIR BASIC TYPES Agreement voluntary between - Employers Vs Employees (a) Current profits: Directly paid on cash /cheque or in the form of op stock Payments made in Cash form (b) Deferred profits: Credited to Employee a/c. & paid at the time of retirement Employees should become eligible (Tenure wise etc) to get the benefit (c) Combination: Partly paid in cash & partly in employees account or trust fund Since mutually accepted agreement employer cannot discriminate Forms of profit sharing (a) Industry basis (b) Locality basis (c)Unit basis (d) Department basis Amount to be distributed as agreed & supplied at all times Amount to be distributed depends on the profits earned at an enterprise (e) Individual Basis Proportion of profits to be distributed determined in advance
Bonus Concept: Extra payment beyond normal wage. Is a deferred payment of wages which aims at bridging the gap between actual wage and the need based wage. It is share of the workers in the prosperity of an organization.
Pay for Performance: One major source for such decisions are Performance appraisal for all employees for workers- their attendance, General behavior, and their continuous incentive earnings will be a source advantages of pay for performance through good incentive schemes/ Profit sharing are
(i) Employees Employer develop better mutual understanding and cooperation. (ii) Industrial Disputes tend to reduce. (iii) Productivity (iv) Scrap and waste tends to reduce (v) Labour turnover reduces (i) Workers efficiency increases HUMAN RESOURCE MANAGEMENT 12MBA26
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(ii) Workers morale and motivation (iii) Develops a sense of participation in the employees (iv) Others: It stimulates interest (Especially profit sharing) of workers who cannot be placed on piecework. (v) Creates a prosperity on the part of workers (ownership) (vi) Make workers behave in a responsible way (vii) Minimise industrial disputes.
Benefits Extra moral: Present day employees expect something more than pay and allowances; Eg. Paid vacation, Sick leave, Insurance Coverage, Pension Cultural Activities opportunities, Housing, Canteen - Benefits Schooling, Hospitals, Banking, Shopping centers - Services These benefits & services (welfare etc) are grouped as 1. Statutory Benefits. 2. Voluntary Benefits 3. Flexible Benefits.
Statutory aspects of compensation and benefits. 1. STATUTORY BEBEFITS:
a. Social Security: 1. Medical Care, 2. Sickness Benefits 3. Unemployed Benefits 4. Old age benefits 5. Injury Benefits (ESI) 6. Family Benefits 7. Maternity Benefit 8. Invalidity Benefit 9. Survivors Benefit b. Compensation against Employment Industry c. Maternity Benefit d. Provident Fund: e. Unemployment Benefits f. State Insurance g. Pension/ Family Pension h. Gratuity i. Medical Cover. j. Group Insurance 2. VOLUNTARY BENEFITS: COVERS THE FOLLOWING:
Rest period or coffee break. HUMAN RESOURCE MANAGEMENT 12MBA26
3. FLEXIBLE BENEFITS: CAFETERIA COMPENSATION :- of flexible approach
SERVICES: (Intramural) 1. Washing Facilities: Factory act 1948; Coal miners Act 1952. Plantation Labour Act 1952. 2. Facilities for storing and drying clothes 3. Sitting facilities: When not working 4. First aid Box > 150 employees compulsory As per acts above 5. Shelters, Rest Rooms & Lunch rooms - As per acts above 6. The canteen. - As per acts above 7. Creches - As per acts above 8. Welfare officers: Royal commission 1931 Recommended following acts provided necessary provision for the Factory Act 1948, Plantation Labours Act 1951, & Coal mines Act 1952
OTHER SERVICES Cooperative Societies Fair Price Shop Bank and Post office Cinema Hall & Theaters Sports club and Recreation Centres Swimming Pool or Health club.
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Module VI Performance management
Meaning and significance of performance management Introduction: HRD helps the employees to acquire/develop technical, managerial, and behavioural knowledge, skills and abilities and modules The values, beliefs and attitude necessary to perform present and future roles.
The process of performance appraisal helps the employee and management to know the level of employees performance compared to the standard pre determined level useful to decide upon employee promotion/ transfer salary etc. Performance appraisal indicates the level of desired performance level, level of actual performance and the Gap between these two. This Gap should be bridged through Human Resource techniques like, Training, executive development etc.
Meaning: Method of evaluating Behaviour of Employees in the work spot including both the quantitative and qualitative aspect of Job performance. Performance is measured in terms of results and not efforts. Important features are. Is the systematic description of an employees job relevant strength and weakness. To find how well the employee is performing the job and establish a plan of improvement. Appraisals are arranged periodically according to a definite plan
Performance evaluations not job Evaluation. It refers to how well someone is doing the assigned job. Job evaluation determines how much a job is worth to the organization and therefore what range of pay should be assigned to the job. Performance appraisal is a continuous process in every large scale organization. Is a way to find out interpersonal relationship Provides job satisfaction of the employees on the job assigned A system by which favoritism and Discrimination by superiors can overcome- a fair judgment.
Performance management need, purpose, objective. need: (i) Provide information about performance and decisions regarding salary fixation, Confirmation, Promotion, Transfer, Demotion are taken based on performance. (INDIAN RAYON) (ii) Provide feedback information about the level of achievement and behavior of the subordinate. This information helps to review the performance, subordinates, and Rectifying performance deficiencies and to set new standards of works if necessary. (Practiced in Raymonds) (iii) Provide information which helps to counsel the subordinates (iv) Provide information to diagnose deficiency in employee regarding skill, knowledge, determine training and developmental needs and to prescribe the means for employee growth and provide information for correcting placement. (v) to prevent grievances and disciplinary activities (Glaxo)
PURPOSE / OBJECTIVES: (i) To create and maintain a satisfactory level of performance HUMAN RESOURCE MANAGEMENT 12MBA26
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(ii) Assist managers to take decision: On promotion, transfer, extension of tenure, Termination etc. In such cases objective assessment of performance is needed.
(iii) Training and development: Needs of employees vary depending on their skill level. Knowledge Level, Experience. Hence as accurate, up to date information in regard to their competence level is needed. Appraisal provide this. (iv) Validation of selection criteria: for certain position or skill. (v) Feedback to employees: Adequate & Relevant on time feedback is made available for corrective action, motivation etc. (vi) Reward Management; Upto date, accurate, objective, performance evaluation is needed for selecting employees to receive such awards. (vii) Manpower planning: for these purposes appraisal is useful - Towards long term successive planning career paths. - Determination of future vacancies & consequent promotional avenues. To sum up performance appraisal primary purpose / objective are Compensation Performance feedback Training Promotion Manpower Planning Plan Lay off, Retrenchment etc
Process of performance management
Performance goal setting/Standard performance
Communicating the standards performance to employees
Measuring the actual performance
Comparing the actual and standard performance
Identifying the gap HUMAN RESOURCE MANAGEMENT 12MBA26
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Framing training and development actions to meet the gap
CONTENTS OF PAS-APPRASIERS & DIFFERENT METHOD OF APPRAISAL Any organization has to decide on the contents of performance appraisal system. Generally the Content is decided on the basis of job analysis. The content to be appraised may vary with the purpose of appraisal & type & level of employees. E.g PAS Performance Appraisal System at ICODE Software. For Managers Building progress towards organizational goals Identifying & reinforcing Behaviors contributing to effective performance. Identifying & Eliminating Behaviors leading to ineffective performance. Identifying developing Behaviors and skills leading to optimal performance.
CONTENTS TO BE APRAISED FOR AN OFFICERS JOB
(i) Regularity of attendance (xii) Area of interest (ii) Self Expression written & oral (xiii) Area of Suitability (iii) Ability to work with others (xiv) Judgement skills (iv) Leadership styles & abilities (xv) Integrity (v) Initiative (xvi) Capability of assuming responsibility (vi) Technical skills (xvii) Level of Acceptance by subordinates (vii) Technical ability / Knowledge (xviii) Honesty and sincerity (viii) Ability to grasp new things (xix) Thoughtfulness in the job and ogranisational knowledge (ix) Ability to Reason (xx) Knowledge of systems and recording (x) Originality & Resource fullness (xi) quality suggestions offered for improvement. (xi) Creative Skills
The Main purpose of performance analysis: is to analyse the present performance of the multiple view points, observe the GAP/Developmental needs and plan for development of the Employee. A technique of HRD Helps Employees to interact closely with his superiors Such interaction helps subordinates to learn from superiors job related and The process becomes a training /development/ educational process.
Appraisers: May be any person: - Who has through knowledge of the job content. - Contents to be appraised standards of content - Who observes the employee while doing the job - Appraiser should be capable of determining what is more - important and what is relatively less important - Should prepare reports and make judgement without Bias.
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TYPICAL APPRAISERS ARE: Supervisors: HOD or Managers, in turn reviewed by Divisional head etc Peers: A person equal in ability, standing, rank, value, contemporary
Subordinates: Followed by developed countries provided a cordial relationship exists.
Employees Themselves : A self appraisal motivates employees. : Thermax, Escorts, Wipro, BEM etc, implement this.
Uses of Service: To judge, speed in doing the job, accuracy, promptness, by users
Consultants. When all above appraisers not working out, consultants DO PA
Types of performance appraisal system
METHODS OF PERFORMANCE APPRAISAL
TRADITIONAL METHOD MODERN METHODS (i) Graphic Rating Scale . Behaviorally anchored rating (ii) Ranking Method scales bars (iii) Paired comparison method . Assessment centre (iv) Forced Distribution method. (v) Checklist Methods . Human Resource Accounting Simple check list Weighted check list Forced choice method . Management by Objective.
(vi) Essay free from appraisal . Psychological Appraisal (Vii) Group appraisal (viii) Confidential Reports.
(i) Graphical Rating Scale: Compares performance to absolute standard. Judgment about performance are required on a scale known as linear rating scale/ simple rating scale. Rating scale given in form 0,1,2,3,4,5. Appraiser assign points to each objective: Analytical ability, creative ability etc points given to each character by the rater are added to find out overall performance and ranking.
(ii) Ranking Method: Rank as best to worst on Some characteristics. Bajaj, Tempo, BASF use this. Rank the best and worst in the first stage and go on the same way with remaining, to complete rating of all employees.
(iii) Paired comparison Method: HUMAN RESOURCE MANAGEMENT 12MBA26
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Followed where number of employee are less. Assign each employee a capital letter A,B,C etc Pair the objectives, put them in a chart & each plotted pair against write in the letter of employee who is found superior and given a positive comparison total and a percentage of total positive evaluation. This positive comparison given in the paired comparison method has an advantage over other comparative methods. (Ranking and forced Distribution)
(iv) Forced Distribution: after assigning marks to the performance of each employee, Distributor in a pattern to confirm to normal frequency Distribution. The limitation is that, in a group if all are outstanding, it is difficult to place people at lower category. Usha, JCT, SPL follow this method.
No Of Employee 40% 20% Average Below 10% 10%20% Average Excel Good On Ent satisfactory Scores
(v) Checklist Method. (i) Simple Checklist (ii) Weighted checklist (iii) Forced choice Method Rater checks on a statement of behavior of an employee as positive / negative. Employee performance is rated on number of positive choice Statement meaning may vary Rater to Rater Performance Ratings on various Behaviour of employee is given a weight age. Weighted performance score is compared with the overall assessment standards to find out the overall performance of an employee. Demerit: The consuming rater may not fully know items contributing to the successful performance. Large number of statements in Groups are prepared. Each group consists of four descriptive statements concerning employee behavior. Two Statements favourable Two Statements, Unvavourable. Appraiser to select one statement that mostly deserves employees behavior. Demerit: Objective evaluation not possible Rater may not fully understand equally desirable/ un desirable HUMAN RESOURCE MANAGEMENT 12MBA26
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(Vi) Critical incident method: A continuous rating method, instead of once in 6 months or 1 year Annual Rating.
Supervisor records employee performance on critical incidents both positive and negative characters on specially designed note book. Rating done based on notebook data. Reduces Bias in evaluation short coming. Critical incidents not defined for comparison All capital (ITC, VOLTAS, VST follow this) incident may not be knowing to supervisor.
(vi) Essay or Free form of appraisal: Manager is required to write a short essay describing each employees performance during the rating period. This format emphasizes Evaluation of overall performance. Based on strength and weakness of employee rather than specific job dimension.
Supervisory BIAS and HOLO effect required by asking supervisor to enumerate specific examples of employee behavior.
To Enumerate Specific examples of employee behavior.
Demerit. - Difficult to take decisions based on essays- No standard - to compare- Evaluators may vary in their skills of essay - Writing & the employee actual performance will depend - On the writing skills of the appraiser. - BPL, BIRLA, 3M, Wheels India & BATA follow this method.
(Vii) Group Appraisal; An employee is appraised by a Group of appraisers. Group consist of Immediate superiors, Managers, HODs of other Department, who have close contacts, Consultants. HOD of the concerned employee will be chairman and immediate supervisor, coordinator for group activities and he explains other members about job character, Demands, standard of performance etc. The Group rating against standard performance discussed with the concerned widely used by Kinetic Honda, Birla, VXL, Bluestar used essentially for promotion, Demotion and Retrenchment.
(Viii) Confidential Reports: A traditional method of Assessment based on observations, Judgments and in turn, superior appraises. Superior does not allow the employee knows the Report and his performance superior rates on his subordinates.
- Strengths - Attitude to work - punctuality - Character - weakness - Sincerity - Attendance - Friendliness - Intelligence - Commitment - Conduct - Cooperation etc Followed by Most of PSU & Organizations, though suffer Limitations.
MODERN METHODS:
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(i) Behaviourly Anchored Rating Scales: BARS Combines Elements of Traditional Rating Scales and Critical Incident Methods Using BARS: Job Behaviour from Critical Incidents Effective Ineffective Behaviours are described more objectively.
Method: Individuals who are familiar with a particular job to identify its major components and then rank and validate specific behavior for each of the components, then they rank and validate specific behaviours for each of the components emphasis on pooling the thought process of people who will use the scales both as Evaluators and Evaluees.
Step: I. Collect Critical Incidents: Supervisors job Holders Describe Effective In effective, Indifference Behaviour Related to Job performance.
Step II. Identify performance Dimension: Convert Critical incidents into Key performance dimension, Generally About 5 to 10 Dim for a job. Step III. Reclassification of Incidents: Another Group to reclassify the Critical Incidents Generated > 75% agreed ones selected. Step IV. Assigning Scale value to the Incidents: 1 to 9 scale 1- Ineffective performance- Higher value- Effective performance. Step V. Producing the Final Instrument; About Six/Seven incidents for each performance dimension. Scale to its mean value.
ASSESSMENT CENTRE: First applied in the German Army in 1930s Technique: It is a system or organization, where assessment of several individuals done by various experts using different techniques some of the method used are : Role Playing, Case Studies, Stimulation Exercise, In Basket, structured insight, Transactional analysis. This is not a technique of performance appraisal by itself.
Human Resource Accounting: Deals with Cost and Contribution of human resources to the organization. Employee contribution can be taken as positive when contribution is more than the cost and cost of employee includes Cost of manpower, planning, recruitment, selection, Induction, Placement, Training, Development, etc. Bank of Baroda, SAIL, ITC Ltd, Made attempts to follow this method.
Management by Objectives: MBO focuses attention on particularly set goals that are tangible, verifiable and measurable.
MBO is done along the following lines
Emphasis is on what must be accomplished rather than how it is to be accomplished.
- Subordinate and Superior jointly Determine Goals to be accomplished dring the Appraisal period and level of performance to meet specific goals. - During the appraisal period the superior and subordinates update and alter the Goals as necessary to suit business environment both superior and subordinate HUMAN RESOURCE MANAGEMENT 12MBA26
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jointly discuss whether the subordinate achieved the Goals. If not identify reasons for deviations viz. Market change, strike / lockout etc.
Performance goal setting, performance coaching and monitoring, performance evaluation and performance feedback
Performance goal setting: To assets the Employees potential. This appraisal results used for
(i) Employee Placement
(ii) Training and development
(iii) Career planning and development
Tests Consists of Evaluation is conducted on the areas of
(i) In depth interviews (i) Employees intellectual abilities (ii) Psychological tests (ii) Emotional stability (iii) Consultation and discussions (iii) Motivational responses (iv) Discussion with superior Subordinates and peers (iv) Reasoning and analytical abilities (v) Reviews of other Evaluations (v) Interpretation and Judgment (vi) Sociability (vii) Ability to foresee the future (viii) Ability to comprehend the shot comings
USES OF PERFORMANCE APPRISAL. LIMITATINS AND PROBLEMS OF P.A
USES OF PA
Performance Improvement: Actions by Managers to Improve based on performance feedback Compensation Adjustments: Helps in deciding pay raises and bonuses based on merit through PA Placement Decisions Promotions, Transfer, Demotion Based on PA Training and Development PA may indicate need for training. Good Needs PA indicates untapped potential Career planning and development To decide on Specific Careers. Staffing process deficiencies Good or Bad performance implies strength and weakness of personnel department Staffing is a procedure. Informational Inaccurate: Poor PA may indicate error in job information leads to unwanted hiring / Training / counseling. HUMAN RESOURCE MANAGEMENT 12MBA26
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Job Design Errors PA indicate ill conceived job designs, PA help in diagnosis of such errors Equal Employment opportunity Accurate PA indicates a good system of placement Internally.
External Challenges HR Department can provide Assistance on outside work environment viz: Family, Finance, Health and others.
Feedback to Human Resources Good/Bad indicates a healthy performance of Human Resources function
LIMITATIONS AND PROBLEMS OF PERFORMANCE APPRAISAL:
(i) RATING BIASES : Since not verifiable by others. Biases are
a) Held effect : Rating tendency to depend excessively on one trait or Behavioural Consideration b) Error or Central Tendency : Rating all at middle point of scale. c) The Leniency and Sickness: Higher rate or lower rates consistently d) Personal Prejudice : Rating at lower end of disliked employees affects career of employees. e) The Recency Effect : Rating on the basis of Recent actions rather on the whole activities- May be favourable/Unfavourable (ii) NOT CONDUCTING PA and Post PA interviews (iii) Most part of PA based on subjectivity (iv) Less Reliability and validity of PA Techniques. (v) Negative Rating affect inter personal industrial relations (vi) Influence of External environment & Uncontrollable internal factors. (vii) Feedback and post PA may have a setback on production (viii) Management to punish rather than development of Employee (ix) Especially potential appraisals are based on Guess work. (x) Relationship of PA Rates & performance after promotion Not Significant (xi) Some superior complete PA in a short time- Few minutes (xii) Reliability of inter rater (xiii) Un-pleasant situations in the feedback interview (xiv) Superior not offering constructive suggestions to subordinates. (xv) Superior sometimes confused over too many objections of PA some of them can be, however overcome by appraising through computers.
HOW TO MINIMISE PROBLEMS OF PERFORMANCE APPRAISAL By convening a open meeting with the appraisers to discuss performance of all Before, during and after PA Allow everyone to comment on others achievement and areas requiring improvement. HUMAN RESOURCE MANAGEMENT 12MBA26
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Appraiser to discuss openly with subordinates. Appraises to be counseled on reasons for their performance and its consequences on periodical basis. Use of Bars instead of trait or personality attributes Combine individual and group Rating. - Classify in various Gardens and indicate employees or corrective actions. Continuous improvement: Apprise continuously on the areas requiring improvements. Multiple Raters: Use of multiple Raters minimize errors. Training Appraisers/ Raters To bring in uniformity in certain and measurement of performance. Peer evaluations: Colleagues allowed to evaluate and allot suitable weightage Rewards to accurate appraisers / Rater: - Improves motivation to become objective in appraisal - Improve value of appraisal Since sometimes they consider PA is routine not for promotions & other career prospects.
(i) Change in Approach to Performance Management: From controlling to development and term as performance analysis and development later as performance management. (ii) Emphasis on Documentation: fixing key performance key result areas and set goals against each for all employees (iii) Computer based performance Management: Use of computer software for implementing Entire Management process (iv) Collaborative Performance Management: Both Manager and subordinate work towards Department / organization Goals with better understanding with common collaborative mind. (v) Customised performance management system: Based on employee skilled , Behaviour and job need. Design separate performance appraisal system for each employee
360 0 APPRAISAL POST APPRAISAL FEEDBACK
360 0 APPRAISAL A MULTTRATER APPRAISAL AND FEEDBACK SYSTEMS
Where an Individual is assessed by 1) Superiors 2) Subordinates 3) Peers 4) Internal Customers 5) External Customers.
Normally carried out once in a year/ half yearly.
Done anonymously by concerned person and the assessment collected by officials of HR Department.
A competency Identification and development tool. If its process and dynamics are maintained with better understanding.
Objectives; HUMAN RESOURCE MANAGEMENT 12MBA26
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(viii) Insights into strong and weak areas of candidates aim Viz: Performance roles, Activities, Styles, Traits, qualities, competency ( Knowledge, Attitude, Skills) and impact on others. (ix) Identification of Developmental needs To plan objectively to suit features roles & performance improvement needed For an individual or group of individuals (x) Data generation. Serve as a objective basis for awards and others (xi) Reinforcement of other change management efforts and organization effectiveness directed to interventions. (xii) Basis for performance linked pay or performance rewards. (xiii) Alignment of Individual / Group goals with organization vision, value and goals
Basis for 360 0 Appraisal 360 0 Feedback Advantages - In addition to traditional methods, the advantages are Culture Building More objective than one person assessment of trat qualities Potential appraisal & development Adds objectivity & supplements traditional PAS Career planning and development Provides more acceptance feedback to employees Succession planning and development In addition to all benefits of traditional PAS satisfactory focus on internal customer is ensured Team Building Points out the supervisory BIAS of Traditional PAS Planning internal customer satisfaction and improvement measures Enhances customer service & Quality of Inputs (from suppliers, consultants) Towards organsiational benefits Role clarity and increased accountability Provides scope for person to get multiple inputs to improve role, personality, styles, ideas and acceptability in a team Participate and enhances quality and approach of HR decisions. Improves individuals attitude, imitative customer related approach
Followed by GE, Hindustan Lever, Grasim, Colgate Palmolive, Hewlett- Packard.
Aligning performance outcome to career and succession planning
Career development is important for companies to create and sustain a continuous learning environment. A study conducted by PWC of companies in finance, online services, hospitality, real estate and high-tech industries suggests that companies that are successful at managing the employee growth that accompanies business expansion and increased demand for their products and services focus on recruitment, career development, culture orientation and communications. These companies emphasize that employees are responsible for career management. HUMAN RESOURCE MANAGEMENT 12MBA26
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Employees, managers, human resource managers, and the company share the responsibility for career planning. Roles in Career Management:
EMPLOYEE MANAGER COMPANY HR MANAGER Self-Assessment Self-Development action plan Create Visibility through Good Relationships Seek Challenge Coaching Counseling Communicating Request information from other company resources Develop systems to support career management Develop culture that supports career management Information and advice Specialized services (testing, counseling or workshops). a) Employees Role: The employees must approach their manager to initiate career-related discussion as part of the personal development planning process. Regardless of how sophisticated the companys career planning system is, employees should engage in career management actions. Take the initiative to ask for feedback from managers and peers regarding their skill strengths and weakness. Identify their stage of career development and development needs. Seek challenges by gaining exposure to a range of learning opportunities (sales assignments, product design assignments, administrative assignments). Interact with employees from different work groups inside and outside the company (professional associations, task forces). Create visibility through good performance. b) Managers Role: Regardless of the type of Career management system in the company, managers should play a key role in career management process. Because managers are the primary source of information about position openings, training courses and other developmental opportunities. To help employees deal with career issues, managers need to be effective in four roles: Coach, appraiser, advisor and referral agent. Coach-Probe problems, interests, values, listen to the needs, define and clarify concerns. Appraiser-Clarify company standards and job responsibilities and company needs and give timely feedback. Advisor-Generate options, experiences and relationships, assist in goal setting and provide recommendations. Referral Agent-Link to career management resources and follow up on career management plan. c) Human Resource Managers Role: HR managers should provide information or advice about training and development opportunities. Also, HR managers should provide specialized services such as testing to determine employees values, interests and skills, prepare employees for job searches and offer counseling and career-related problems. HUMAN RESOURCE MANAGEMENT 12MBA26
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d) Companys Role: Companies are responsible for providing employees with the resources needed to be successful in career planning. These resources include specific programs as well as processes for career management: Career workshops (seminars on how career management system works, self-assessment, goal setting and helping managers understand and perform their roles in career management. Infromation on career and job opportunities Career planning workbooks (printed guides that direct employees through a series of exercises, discussions and guidelines relating to career planning). Career counseling (advice from a professionally trained counselor who specializes in working with employees seeking assistance with career issues). Career paths (planning job sequences and identifying skills needed for advancement within and across job families, such as moving from technical jobs to management jobs). The company also needs to monitor the career planning system to (ensure that managers and employees are using the system as intended and evaluate whether the system is helping the company meet its objectives,
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Module VII Employee Relations
Meaning and significance of employee relations Industrial Relations means the relationship between employees and the Management in the day to day working of the Industry. Whole field of relationship that exists because of the necessary collaborations of men and women in the employment process of an Industry Dale Yoder. Whole field = Set of functions inter dependence involving, historical, economic, social, physical, demographic, Technological, occupational political and Legal Variables) Industrial Relations deal with either the Relationship between the State and the Employers and worker organizations or the relation between occupational organization themselves I.L.O (International labour Organisation)
Factors of Industrial Relations: (i) Worker and their organizations (ii) Employers and their organizations (iii) Government Factors of Industrial relations (1) Institutional Factors. (2) Economic factors (3) Technological factors. (4) Social and cultural factors (5) Political factors (6) Governmental factors.
Employee relation in unionized and non-unionized organizations
(i) To promote and develop Congenial Labour Management Relations. (ii) To enhance economic status of worker by improving wages, benefits, and by helping the worker in Evolving sound budget.
(iii) To regulate production by minimizing industrial conflicts through step control. (iv) To socialize industries by making Government as an employer (v) To provide an opportunity to the workers to have a say in the management and decision making. (vi) To Improve workers strength with a view to solve their problems through mutual negotiations & collaboration with management. (vii) To encourage and develop trade unions in order to improve workers strength. (viii) To avoid industrial conflict and their consequences.
(ix) To extend and maintain Industrial democracy
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Handling employee grievances. Employee discipline and domestic enquiry - Discipline maintenance To regulate behavior or employees in a organization - Rules and regulations are essential to maintain peace, prevent anarchy regulate behavior of people and to hold things together. - Moreover, employees prefer to work under Disciplined environment of fair rules protect, individuals and organization & enable team work. - D. Measure ensure just & equal treatment to all employees, efficient, Two way communication , encourages cooperation & builds team pride. - Discipline Training & that corrects, moulds, strengthens or perfects - (Definitions) Control gained by Enforcing obedience, and - It is punishment or chastisement
INDICATE TWO ASPECTS OF DISCIPLINE
POSITIVE ASPECT self Discipline consecutive Discipline NEGATIVE ASPECT Autocratic corrective or punitive approach Employees believe in and support discipline, adhere to the rules, regulations, & desired standards of Behavior. Discipline takes the form of positive support and reinforcement for approved actions ad its aims to help the individual in molding his behavior and developing him in a corrective & supportive manner Employees some time do not believe in a support discipline. Hence do not adhere to rules, regulations and desired standard of behavior As such disciplinary programme forces & constraints the employees to obey orders & function in accordance with set rules& regulations through warnings Penalties and other forms forms of punishment Such an approach is called negative approach.
OBJECTIVES OF THE DISCLIPLINE ARE To obtain a willing acceptance of the Rules, Regulations and procedures of an organization so that the organizational goals may be obtained. To impart an element of certainty despite several differences in informal behavior of partners & related changes the organization. To develop among the employees a spirit of tolerance and a desire to make adjustments To give and seek direct and responsibility. To create an atmosphere of respect to human relations & personality To Increase the working efficiency and morale of the Employees so that their productivity is stepped up & cost of production controlled.
INDISCLIPLINE: Disorderliness, Insubordination, not following Rules and Regulations of an organization. HUMAN RESOURCE MANAGEMENT 12MBA26
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SYMPTOMS: Change in normal Behaviour Demand for over time lack of performance for performance.
Types of Punishment are: 1. Oral warning 2. Written warning 3. Loss of privileges and fines 4. Punitive Suspension 5. With holding of increment 6. Demotion 7. Termination.
GRIEVENCE HANDLING
Grievance handling is resorted to settle disputes by systematic application of Grievance procedure. A Labour agreement contain some form of Grievance, procedure , and if followed disputes can be easily settled. Grievance is well defined in a collective Bargaining agreement It is usually restricted to violation of terms and conditions of employment.
Others
- Violation of Law: Violation of company Rules - Violation of intent of parties as stipulates during contract negotiations. - A change in working condition & past company practices. - A violation of Health and safety standards.
An employee when he/She beliefs that the Labour Agreement has been violated, files a grievance, which need to be resolved according to a set of procedure. Grievance procedure establishes the following
1. How the Grievance will be initiated. 2. Number of steps in the process 3. who will represent each party 4. The specific number of working days within which the grievance must be taken to the next step in the hearing.
A typical Grievance procedure followed in a public sector ( Bangalore Based)
No
Stage 4 Complaint to Union Grievance Resolved HUMAN RESOURCE MANAGEMENT 12MBA26
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Yes
No
Yes
No Yes
General: (i) Employee if wants to take his care from Stage to another at Stage I & II within 5 days. Stage III within 10 days (Employee on leave period excluded) (ii) IF the Employee has to leave the Department during working hours he should take prior permission. (iii) Officers handling Grievance at State I & II should involve the concerned personnel officer of the Division. At Stage III to involve DGM Personnel in the Discussion and Settlements. (iv) Acknowledgement for receipt of Grievance including complaint should be give to the Employee at early stage. (v) At stage II & III any favourable settlement need to be implemented.
Large organizations do find to have more formal procedures involving a succession steps. General Principle which should guide any procedure are
1. Grievance must be addressed promptly 2. Procedures and forms airing Grievance must be easy to utilize and well understand by employees and their supervisors. 3. Ego clashes should not be allowed to impede the resolution of disputes. 4. Occurrence of such Grievance must be avoided.
WORKERS PARTICIPATION IN MANAGEMENT:
WPM: Is considered as a mechanism where workers have a say in the Decision Making process of an Enterprise formally
Objectives of Workers participation in Management:
Stage 3 Complaint to Divisional Head Grievance Resolved Stage 2 Complaint to Department Head Grievance Resolved Stage 1 Complaint to Section Head HUMAN RESOURCE MANAGEMENT 12MBA26
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(i) To promote increased productivity for the advantage of the organization, workers and society at large. (ii) To provide a better understanding to employees about their role and place in the process of attainment of organizational goals. (iii) To satisfy the workers social and esteem needs. (iv) To strengthen labour management co-operation and thus maintain industrial peace and harmony. (v) To develop social education for effective solidarity among the working community and for tapping latent human resources. (vi) An ideological point of view to develop self management in industry (vii) Enable improving efficiency of the company and establishing harmonious industrial Relations. (viii) To build the most dynamic Human Resource. (ix) To build the nation through entrepreneurship and economic development.
FORMS OF WPM: Vary from Industry to Industry & from country to country. WPM forms are: (i) Works Committee (ii) Joint Management Council (iii) Joint Councils (iv) Shop Councils.
(i) Works committee: The Industrial disputes act 1949 provides setting up of work committees as a scheme for WPM. Aim: to Set up Bodies to promote Measures for Maintaining harmonious relation into the work place and sort out Employer / Employee difference of Opinion. (ii) Joint Management Council: II five year plan recommended such council in 1957 (iii) Joint Councils: For the whole unit members are of that unit meet once in 4 months. Functions of council enlarged in 1976. (iv) Shop Councils: Represents each department or a shop in a unit. The decisions of various shop councils will be referred to joint Council for consideration and approval.
Suggestions for the success of W.P.M 1. Mutual trust & faith among all the parties concerned. 5. All concerned in the WPM should participate at all levels 2. Progressive Management to Recognize Obligations & Responsibilities towards workers and trade union 6. Effective communications between worker: and Management & Consultations. 3. Strong, Democratic, Representative unions to be represent cause of workers. 7. Should develop a favourable attitude the Scheme PM 4. Objectives for participation by trade unions and management formulated closely and mutually 8 Management a Government to provide training to all parties concerned for PM 9. Both the parties should be conscious of Benefit of such schemes.
MAINTAINING GOOD HUMAN & INDUSTRIAL RELATIONS BENEFITS ACCRUED BY THE ORGANISATION DUE TO CONGENIAL ENVIORNMENT HUMAN RESOURCE MANAGEMENT 12MBA26
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Industrial Relations means the relationship between employees and the Management in the day to day working of the Industry. Whole field of relationship that exists because of the necessary collaborations of men and women in the employment process of an Industry Dale Yoder. Whole field = Set of functions inter dependence involving, historical, economic, social, physical, demographic, Technological, occupational political and Legal Variables) Industrial Relations deal with either the Relationship between the State and the Employers and worker organizations or the relation between occupational organization themselves I.L.O (International labour Organisation)
(i) Worker and their organizations (ii) Employers and their organizations (iii) Government Factors of Industrial relations (1) Institutional Factors. (2) Economic factors (3) Technological factors. (4) Social and cultural factors (5) Political factors (6) Governmental factors.
(i) To promote and develop Congenial Labour Management Relations. (ii) To enhance economic status of worker by improving wages, benefits, and by helping the worker in Evolving sound budget.
(iii) To regulate production by minimizing industrial conflicts through step control. (iv) To socialize industries by making Government as an employer (v) To provide an opportunity to the workers to have a say in the management and decision making. (vi) To Improve workers strength with a view to solve their problems through mutual negotiations & collaboration with management. (vii) To encourage and develop trade unions in order to improve workers strength. (viii) To avoid industrial conflict and their consequences.
(ix) To extend and maintain Industrial democracy
FUNCTIONS OF I.R.S
(i) Communication is to be established between workers and the management in order to bridge the Gap. (ii) To establish Rapport between Manager and the Managed (iii) To ensure creative contribution if trade union to avoid industrial conflicts Safeguard interests of workers - Avoid Industrial Conflicts Safeguard interests of workers - Interests of management to avoid and ensure Unhealthy, Unethical atmosphere does not exist / allowed.
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(iv) To Lay down such considerations which may promote understanding creativity and cooperativeness to raise industrial productivity and to ensure better workers participation? Congenial: Pleasant / Suited / Agreeable
MAINTAINING GOOD HUMAN AND INDUSTRIAL RELATIONS: BENEFITS ACCRUED BY THE ORGANISATION DUE TO CONGENIAL ENVIORNMENT.
CODE FOR GOOD HUMAN AND INDUSTRIAL RELATIONS for CONGENIAL ENVIORNMENT. Attitude of management to trade unions and employees should be positive. Attitude of employees toward management should also be positive and also towards trade union. Management to have authority to enforce decisions affecting the interest of the trade unions and employers Management need not consult trade unions and employees on disciplinary cases. Management should not influence employees joining /withdraw from union. Trade unions should not enter into managerial activities not concerned to them. Managers and supervisors to be empowered deal on disciplinary & Grievance cases All collective bargaining agreements to be implemented and issues disposed off Management to have rights to employ candidates to suit organizational strategies All employees to attend training programmes planned All Employees to accept transfer based on the companys transfer policy. Employees and trade unions to participate in various decision making implementations at different levels of company. Employees resort to strike as a last attempt to give at-least 1 week notice to trade unions. Similarly management should use the lockout technique only as a last resort and with a minimum 1 week notice to trade union.
CONDITIONS FOR CONGENIAL INDUSTIRAL RELATIONS
(i) Existence of strong, well organized & Democratic employees union. (ii) Existence of sound and oraganised employers union. (iii) Sprit of collective bargaining and willingness to resort to voluntary arbitration. (iv) Maintenance of Industrial Peace: - Most essential and can be ensured by following these measures - a. Machinery for prevention and settlement of disputes. - Following legislative / conservative measures. - Works committee, standing order, welfare offices, shop council, joint councils and joint management council. - Settlement method: Voluntary arbitration, conciliation, adjudication . HUMAN RESOURCE MANAGEMENT 12MBA26
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- b. Government should be provided with the authority of settling the industrial disputes with settling between two parties voluntary arbitration. - c. Provision for the Bipartite and Tripartite committees in order to evolve personnel policies, code of conduct, code of discipline etc. - d. Provision for the various committees to implement and evaluate The collective bargaining arguments. Court orders and judgments. Awards of voluntary arbitration. Etc.
* Arbitration: Settlement of dispute by an Arbitrator (person authorized) ** Conciliation: Make situation calm, amenable (Responsive, Tractable) easy to Handle *** Adjudication: Decide judicially regarding a Claim/Demand.
Legal aspects of employee relations with reference to trade union Act In this Act "the appropriate government" means, in relation to trade unions whose objects are not confined to one State, the Central Government, and in relation to other trade unions, the State Government, and, unless there is anything repugnant in the subject or context,- (a) "executive" means the body, by whatever name called, to which the management of the affairs of a trade union is entrusted; (b) office-bearer" in the case of a trade union, includes any member of the executive thereof, but does not include an auditor; (c) "prescribed" means prescribed by regulations made under this Act; (d) "registered office" means that office of a trade union which is registered under this Act as the head office thereof; (e) "registered trade union" means a trade union registered under this Act; (f) "Registrar" means- (i) a Registrar of Trade Unions appointed by the appropriate government under section 3, and includes any Additional or Deputy Registrar of Trade Unions, and (ii) in relation to any trade union, the Registrar appointed for the state in which the head or registered office, as the case may be, of the trade union is situated; (g) "trade dispute" means any dispute between employers and workmen, or between workmen and workmen, or between employers and employers which is connected with the employment or non-employment, or the terms of employment or the conditions of labor, of any person, and "workmen" means all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises; and HUMAN RESOURCE MANAGEMENT 12MBA26
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(h) "trade union" means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions: PROVIDED that this Act shall not affect- (i) any agreement between partners as to their own business; (ii) any agreement between an employer and those employed by him as to such employment; or (iii) any agreement in consideration of the sale of the goodwill of a business or of instruction in any profession, trade or handicraft. The appropriate government shall appoint a person to be the Registrar of Trade Unions for each State. (2) The appropriate government may appoint as many Additional and Deputy Registrars of Trade Unions as it thinks fit for the purpose of exercising and discharging, under the superintendence and direction of the Registrar, such powers and functions of the Registrar under this Act as it may, by order, specify and define the local limits within which any such Additional or Deputy Registrar shall exercise and discharge the powers and functions so specified. (3) Subject to the provisions of any order under sub-section (2), where an Additional or Deputy Registrar exercises and discharges the powers and functions of a Registrar in an area within which the registered office of a trade union is situated, the Additional or Deputy Registrar shall be deemed to be the Registrar in relation to the trade union for the purposes of this Act. 4. Mode of registration (1) Any seven or more members of a trade union may, by subscribing their names to the rules of the trade union and by otherwise complying with the provisions of this Act with respect to registration, apply for registration of the trade union under this Act. (2) Where an application has been made under sub-section (1) for the registration of a trade union, such application shall not be deemed to have become invalid merely by reason of the fact that, at any time after the date of the application, but before the registration of the trade union, some of the applicants, but not exceeding half of the total number of persons who made the application, have ceased to be members of the trade union or have given notice in writing to the Registrar dissociating themselves from the application. 5. Application for registration (1) Every application for registration of a trade union shall be made to the Registrar and shall be accompanied by a copy of the rules of the trade union and a statement of the following particulars, namely:- HUMAN RESOURCE MANAGEMENT 12MBA26
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(a) the names, occupations and addresses of the members making application; (b) the name of the trade union and the address of its head office; and (c) the titles, names, ages, addresses and occupations of the office-bearers of the trade union. (2) Where a trade union has been in existence for more than one year before the making of an application for its registration, there shall be delivered to the Registrar, together with the application, a general statement of the assets and liabilities of the trade union prepared in such form and containing such particulars as may be prescribed. 6. Provisions to be contained in the rules of a trade union A trade union shall not be entitled to registration under this Act, unless the executive thereof is constituted in accordance with the provisions of this Act, and the rules thereof provide for the following matters, namely:- (a) the name of trade union; (b) the whole of the objects for which the trade union has been established; (c) the whole of the purposes for which the general funds of the trade union shall be applicable, all of which purposes shall be purposes to which such funds are lawfully applicable under this Act; (d) the maintenance of a list of the members of the trade union and adequate facilities for the inspection thereof by the office-bearers and members of the trade union; (e) the admission of ordinary members who shall be persons actually engaged or employed in an industry with which the trade union is connected, and also the admission of the number of honorary or temporary members as office bearers required under section 22 to form the executive of the trade union; the payment of a subscription by members of the trade union which shall be not less than twenty- five naye paise per month per member; (f) the conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on the members; (g) the manner in which the rules shall be amended, varied or rescinded; (h) the manner in which the members of the executive and the other office-bearers of the trade union shall be appointed and removed; HUMAN RESOURCE MANAGEMENT 12MBA26
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(i) the safe custody of the funds of the trade union, and annual audit, in such manner as may be prescribed, of the accounts thereof, and adequate facilities for the inspection of the account books by the office-bearers and members of the trade union; and (j) the manner in which the trade union may be dissolved. 7. Power to call for further particulars and to require alternations of names (1) The Registrar may call for further information for the purpose of satisfying himself that any application complies with the provisions of section 5, or that the trade union is entitled to registration under section 6, and may refuse to register the trade union until such information is supplied (2) If the name under which a trade union is proposed to be registered is identical with that by which any other existing trade union has been registered or, in the opinion of the Registrar, so nearly resembles such name as to be likely to deceive the public or the members of either trade union, the Registrar shall require the persons applying for registration to alter the name of the trade union stated in the application, and shall refuse to register the union until such alteration has been made. 8. Registration The Registrar, on being satisfied that the trade union has complied with all the requirements of this Act in regard to registration, shall register the trade union by entering in a register, to be maintained in such form as may be prescribed, the particulars relating to the trade union contained in the statement accompanying the application for registration. 9. Certificate of registration The Registrar, on registering a trade union under section 8, shall issue a certificate of registration in the prescribed form which shall be conclusive evidence that the trade union has been duly registered under this Act. 10. Cancellation of registration A certificate of registration of a trade union may be withdrawn or cancelled by the Registrar- (a) on the application of the trade union to be verified in such manner as may be prescribed: (b) if the Registrar is satisfied that the certificate has been obtained by fraud or mistake or that the trade union has ceased to exist or has willfully and after notice from the Registrar contravened by provision of this Act or allowed any rule to continue in force which is inconsistent with any such provision, or has rescinded any rule providing for any matter provision for which is required by section 6: HUMAN RESOURCE MANAGEMENT 12MBA26
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PROVIDED that not less than two months previous notice in writing specifying the ground on which it is proposed to withdraw or cancel the certificate shall be given by the Registrar to the Trade Union before the certificate is withdrawn or cancelled otherwise than on the application of the trade union. 11. Appeal (1) Any person aggrieved by any refusal of the Registrar to register a trade union or by the withdrawal or cancellation of a certificate of registration may, within such period as may be prescribed, appeal- (a) where the head office of the trade union is situated within the limits of a Presidency town to the High Court, or (b) where the head office is situated in any other area, to such Court, not inferior to the court of an additional or assistant Judge of a principal civil court of original jurisdiction, as the 16 [appropriate government] may appoint in this behalf for that area. (2) The appellate court may dismiss the appeal, or pass an order directing the Registrar to register the union and to issue a certificate of registration under the provisions of section 9 or setting aside the order for withdrawal or cancellation of the certificate, as the case may be, and the Registrar shall comply with such order. (3) For the purpose of an appeal under sub-section (1), an appellate court shall, so far as may be, follow the same procedure and have the same powers as it follows and has when trying a suit under the Code of Civil Procedure, 1908, (5 of 1908) and may direct by whom the whole or any part of the costs of the appeal shall be paid, and such costs shall be recovered as if they had been awarded in a suit under the said Code. (4) In the event of the dismissal of an appeal by any court appointed under clause (b) of sub- section (1) the person aggrieved shall have a right of appeal to the High Court, and the High Court shall, for the purpose of such appeal, have all the powers of an appellate court under sub- sections (2) and (3), and the provisions of those sub-sections shall apply accordingly. 12. Registered office All communications and notices to a registered trade union may be addressed to its registered office. Notice of any change in the address of the head office shall be given within fourteen days of such change to the Registrar in writing, and the changed address shall be recorded in the register referred to in section 8. Industrial employment standing orders Act Industrial Employment (Standing Orders) Act, 1946 . Short title, extent and application HUMAN RESOURCE MANAGEMENT 12MBA26
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(1) This Act may be called the Industrial Employment (Standing Orders) Act, 1946. (2) It extends to l [the whole of India.] 2 [(3) It applies to every industrial establishment wherein one hundred or more workmen are employed, or were employed on any day of the preceding twelve months: PROVIDED that the appropriate government may, after giving not less than two months notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any industrial establishment employing such number of persons less than one hundred as may be specified in the notification.]. 3 [(4) Nothing in this Act shall apply to- (i) any industry to which the provisions of Chapter VII of the Bombay Industrial Relations Act, 1946 (11 of 1947) apply; or (ii) any industrial establishment to which the provisions of the Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 (26 of 1961) apply: PROVIDED that notwithstanding anything contained in the Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961 (26 of 1961), the provisions of this Act shall apply to all industrial establishments under the control of the Central Government.] 2. Interpretation In this Act, unless there is anything repugnant in the subject or context- 4 [(a) "appellate authority" means an authority appointed by the appropriate government by notification in the Official Gazette to exercise in such area as may be specified in the notification the functions of an appellate authority under this Act: PROVIDED that in relation to an appeal pending before an Industrial Court or other authority immediately before the commencement of the Industrial Employment (Standing Orders) Amendment Act, 1963 (39 of 1963), that court or authority shall be deemed to be the appellate authority;] (b) "appropriate government" means in respect of industrial establishments under the control of the Central Government or a Railway administration or in a major port, mine, or oil-field, the Central Government, and in all other cases, the State Government: 5 [PROVIDED that where any question arises as to whether any industrial establishment is under the control of the Central Government, that Government may, either on a reference made to it by the employer or the workman or a trade union or other representative body of the workmen, or on its own motion and after giving the parties an opportunity of being heard, decided the question and such decision shall be final and binding on the parties;] HUMAN RESOURCE MANAGEMENT 12MBA26
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2 [(c) "Certifying Officer" means a Labor Commissioner or a Regional Labor Commissioner, and includes any other officer appointed by the appropriate government, by notification in the Official Gazette, to perform all or any of the functions of a Certifying Officer under this Act;] (d) "employer" means the owner of an industrial establishment to which this Act for the time being applies, and includes- (i) in a factory, any person named under 2 [clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948), as manager of the factory; (ii) in any industrial establishment under the control of any department of any Government in India, the authority appointed by such Government in this behalf, or where no authority is so appointed, the head of the department; (iii) in any other industrial establishment, any person responsible to the owner for the supervision and control of the industrial establishment; (e) "industrial establishment" means- (i) an industrial establishment as defined in clause (ii) of section 2 of the Payment of Wages Act, 1936 (4 of 1936); or 2 [(ii) a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948); or] (iii) a railway as defined in clause (4) of section 2 of the Indian Railways Act, 1890 (9 of 1890), or (iv) the establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employees workmen: (f) "prescribed" means prescribed by rules made by the appropriate government under this Act; (g) "standing orders" means rules relating to matters set out in the Schedule; (h) "trade union" means a trade union for the time being registered under the Indian Trade Unions Act, 1926 (16 of 1926); 6 [(i) "wages" and "workman" have the meanings respectively assigned to them in clauses (rr) and (s) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947).] 3. Submission of draft standing orders (1) Within six months from the date on which this Act becomes applicable to an industrial establishment, the employer shall submit to the Certifying Officer five copies of the draft standing orders proposed by him for adoption in his industrial establishment. HUMAN RESOURCE MANAGEMENT 12MBA26
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(2) Provision shall be made in such draft for every matter set out in the Schedule which may be applicable to the industrial establishment, and where model standing orders have been prescribed, shall be, so far as is practicable, in conformity with such model. (3) The draft standing orders submitted under this section shall be accompanied by a statement giving prescribed particulars of the workmen employed in the industrial establishment including the name of the trade union, if any, to which they belong. (4) Subject to such conditions as may be prescribed, a group of employers in similar industrial establishments may submit a joint draft of standing orders under this section. Comment: The Act does not say that on such certification, the Standing Orders acquire statutory effect or become part of the statute. It can certainly not be suggested that by virtue of certification, they get metamorphosed into delegated/subordinate legislation. Though these Standing Orders are undoubtedly binding upon both the employer and the employees and constitute the conditions of service of the employees, it appears difficult to say, on principle, that they have statutory force. The Rajasthan State Road Transport Corporation and another etc. etc., Appellants v. Krishna Kant., AIR 1995 SUPREME COURT 1715 Conditions for certification of standing orders Standing orders shall be certifiable under this Act if- (a) provision is made therein for every matter set out in the Schedule which is applicable to the industrial establishment, and (b) the standing orders are otherwise in conformity with the provisions of this Act, and it 7 [shall be the function] of the Certifying Officer or appellate authority to adjudicate upon the fairness or reasonableness of the provisions of any standing orders. 5. Certification of standing orders (1) On receipt of the draft under section 3, the Certifying Officer shall forward a copy thereof to the trade union, if any, of the workmen, or where there is no such trade union, to the workmen in such manner as may be prescribed, together with a notice in the prescribed form requiring objections, if any, which the workmen may desire to make to the draft standing orders to be submitted to him within fifteen days from the receipt of the notice. (2) After giving the employer and the trade union or such other representative of the workmen as may be prescribed, an opportunity of being heard, the Certifying Officer shall decide whether or no any modification of or addition to the draft submitted by the employer is necessary to render the draft standing orders certifiable under this Act, and shall make an order in writing accordingly. (3) The Certifying Officer shall thereupon certify the draft standing orders, after making any modification therein which his order under sub-section (2) may require, and shall within seven HUMAN RESOURCE MANAGEMENT 12MBA26
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days thereafter send copies of the certified standing order authenticated in the prescribed manner and of his order under sub-section (2) to the employer and to the trade union or other prescribed representatives of the workmen Appeals (1) 6 [Any employer, workmen, trade union or other prescribed representatives of the workmen] aggrieved by the order of the Certifying Officer under sub-section (2) of section 5 may, within 8 [thirty days] from the date on which copies are sent under sub-section (3) of that section, appeal to the appellate authority, and the appellate authority, whose decisions shall be final, shall by order in writing confirm the standing orders either in the form certified by the Certifying Officer or after amending the said standing orders by making such modifications thereof or additions thereto as it thinks necessary to render the standing orders certifiable under this Act. (2) The appellate authority shall, within seven days of its order under sub-section (1), send copies thereof of the Certifying Officer, to the employer and to the trade union or other prescribed representatives of the workmen, accompanied, unless it has confirmed without amendment the standing orders as certified by the Certifying Officer, by copies of the standing orders as certified by it and authenticated in the prescribed manner. 7. Date of operation of standing orders Standing orders shall, unless an appeal is preferred under section 6, come into operation on the expiry of thirty days from the date on which authenticated copies thereof are sent under sub- section (3) of section 5, or where an appeal as aforesaid is preferred, on the expiry of seven days from the date on which copies of the order of the appellate authority are sent under sub-section (2) of section 6. 8. Register of standing orders A copy of all standing orders as finally certified under this Act shall be field by the Certifying Officer in a register in the prescribed form maintained for the purpose, and the Certifying Officer shall furnish a copy thereof to any person applying therefor on payment of the prescribed fee. 9. Posting of standing orders The text of the standing order as finally certified under this Act shall be prominently posted by the employer in English and in the language understood by the majority of his workmen on special boards to be maintained for the purpose at or near the entrance through which the majority of the workmen enter the industrial establishment and in all departments thereof where the workmen are employed. . Duration and modification of standing orders (1) Standing orders finally certified under this Act shall not, except on agreement between the employer and the workmen, 9 [or a trade union or other representative body of the workmen] be HUMAN RESOURCE MANAGEMENT 12MBA26
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liable to be modification until the expiry of six months from the date on which the standing orders or the last modifications thereof came into operation. 10 [(2) Subject to the provisions of sub-section (1), an employer or workman 9 [or a trade union or other representative body of the workmen may apply to the Certifying Officer to have the standing orders modified and such application shall be accompanied by five copies of the modifications proposed to be made, and where such modifications are proposed to be made by agreement between the employer and the workmen 9 [or a trade union or other representative body of the workmen], a certified copy of that agreement shall be filed along with the application.] (3) The foregoing provisions of this Act shall apply in respect of an application under sub- section (2) as they apply to the certification of the first standing orders. 3 [(4)Nothing contained in sub-section (2) shall apply to an industrial establishment in respect of which the appropriate government is the Government of the State of Gujarat or the Government of the State of Maharashtra.] Certifying Officers and appellate authorities to have powers of civil court (1) Every Certifying Officer and appellate authority shall have all the powers of a civil court for the proposes of receiving evidence, administering oaths, enforcing the attendance of witnesses, and compelling the discovery and production of documents, and shall be deemed to be a civil court within the meaning of 6 [sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974).] 11 [(2) Clerical or arithmetical mistakes in any order passed by Certifying Officer or appellate authority, or errors arising therein from any accidental slip or omission may, at any time, be corrected by that officer or authority or the successor in office of such officer or authority, as the case may be.] 12. Oral evidence in contradiction of standing orders not admissible No oral evidence having the effect of adding to or otherwise varying or contradicting standing order as finally certified under this Act shall be admitted in any court. 12A. Temporary application of model standing orders (1) Notwithstanding anything contained in sections 3 to 12, for the period commencing on the date on which this Act becomes applicable to an industrial establishment and ending with the date on which the standing orders as finally certified under this Act come into operation under section 7 in that establishment, the prescribed model standing order shall be deemed to be adopted in that establishment, and the provisions of section 9, sub-section (2) of section 13 and section 13A shall apply to such model standing orders as they apply to the standing orders so certified. HUMAN RESOURCE MANAGEMENT 12MBA26
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(2) Nothing contained in sub-section (1) shall apply to an industrial establishment in respect of which the appropriate government is the Government of the State of Gujarat or the Government of the State of Maharashtra.] SCHEDULE I : Model Standing Orders in Respect of Industrial Establishments not being Industrial Establishments in Coal Mines 1.These orders shall come into force on ________________________ Classification of workmen. 2. (a) Workmen shall be classified as, (1) permanent, (2) probationers, (3) badlis, (4) temporary, (5) casual, (6) apprentices (b) A "permanent" workman is a workman who has been engaged on a permanent basis and includes any person who has satisfactorily completed a probationary period of three months in the same or another occupation in the industrial establishment, including breaks due to sickness, accident, leave, lock-out, strike (not being an illegal strike) or involuntary closure of the establishment. (c) A "probationer" is a workman who is provisionally employed to fill a permanent vacancy in a post and has not completed three months service therein. If a permanent employee is employed as a probationer in a new post he may, at any time during the probationary period of three months, be reverted to his previous permanent post. (d) A "badly" is a workman who is appointed in the post of a permanent workman or probationer who is temporarily absent. (e) A "temporary workman" is a workman who has been engaged for work which is of an essentially temporary nature likely to be finished within a limited period. (f) A "casual" workman is a workman whose employment is of a casual nature. (g) An "apprentice" is a learner who is paid an allowance during the period of his training. HUMAN RESOURCE MANAGEMENT 12MBA26
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3. Tickets (1) Every workman shall be given a permanent ticket unless he is a probationer, badly, temporary worker or apprentice. (2) Every permanent workman shall be provided with a departmental ticket showing his number, and shall on, being required to do so, show it to any person authorized by the manager to inspect it. (3) Every badly shall be provided with the badly card on which shall be entered the days on which he has worked in the establishment, and which shall be surrendered if he obtains permanent employment. (4) Every temporary workman shall be provided with a temporary ticket which he shall surrender on his discharge. (5) Every casual worker shall be provided with a casual card on which shall be entered the days on which he has worked in the establishment. (6) Every apprentice shall be provided with an apprentice card, which shall be surrendered if he obtains permanent employment. 4. Publication of working time The periods and hours of work for all classes of workers in each shift shall be exhibited in English and in the principal languages of workmen employed in the establishment on notice boards maintained at or near the main entrance of the establishment and at time-keepers office, if any. 5. Publication of holidays and pay days Notices specifying (a) the days observed by the establishment as holidays, and (b) pay days shall be posted on the said notice-boards. 6. Publication of wage rates Notices specifying the rates of wages payable to all classes of workmen and for the classes of work shall be displayed on the said notice boards. 7. Shift working More than one shift may be worked in a department or departments or any section of a department of the establishment at the discretion of the employer. If more than one shift is worked, the workmen shall be liable to be transferred from one shift to another. No shift working shall be discontinued without two months notice being given in writing to the workmen prior to such discontinuance, provided that no such notice shall be necessary if the closing of the shift is HUMAN RESOURCE MANAGEMENT 12MBA26
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under an agreement with the workmen affected. If as a result of the discontinuance of the shift working, any workmen are to be retrenched, such retrenchment shall be effected in accordance with the provisions of the Industrial Disputes Act, 1947 (14 of 1947) and the rules made thereunder. If shift working is restarted, the workmen shall be given notice and re-employed in accordance with the provisions of the said Act and the said Rules. 7A. 9 [Notice of changes in shift working Any notice of discontinuance or of restarting of a shift working required by Standing Order 7 shall be in 10 [Form IVA] and shall be served in the following manner, namely:- The notice shall be displayed conspicuously by the employer on a notice board at the main entrance to the establishment 11 [***]: PROVIDED that where any registered trade union of workmen exists, a copy of the notice shall also be served by registered post on the secretary of such union.] 8. Attendance and late coming All workmen shall be at work at the establishment at the time fixed and notified under paragraph 4. Workmen attending late will be liable to the deductions provided for in Payment of Wages Act, 1936. 9. Leave (1) Holidays with pay will be allowed as provided for in 12 [Chapter VIII of the Factories Act, 1948], and other holidays in accordance with law, contract, custom and usage. (2) A workman who desires to obtain leave of absence shall apply to the 13 [employer or any other officer of the industrial establishment specified in this behalf by the employer], who shall issue orders on the application within a week of its submission or two days prior to the commencement of the leave applied for, whichever is earlier, provided that if the leave applied for is to commence on the date of the application or within three days thereof, the order shall be given on the same day. If the leave asked for is granted, a leave pass shall be issued to the worker. If the leave is refused or postponed, the fact of such refusal or postponement and the reasons therefor shall be recorded in writing in a register to be maintained for the purpose, and if the worker so desires, a copy of the entry in the register shall be supplied to him. If the workman after proceeding on leave desires an extension thereof, he shall apply to the 9 [employer or the officer specified in this behalf by the employer] who shall send a written reply either granting or refusing extension of leave to the workman if his address is available and if such reply is likely to reach him before the expiry of the leave originally granted to him (3) If, the workman remains absent beyond the period of leave originally granted or subsequently extended, he shall lose is lien on his appointment unless he (a) returns within 8 days of the expiry of the leave and (b) explains to the satisfaction of the 13 [employer or the officer specified in this HUMAN RESOURCE MANAGEMENT 12MBA26
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behalf by the employer] his inability to return before the expiry of his leave. In case the workman loses his lien on his appointment, he shall be entitled to be kept on the badly list. 10. Casual leave A workman may be granted casual leave of absence with or without pay not exceeding 10 days in the aggregate in a calendar year. Such leave shall not be for more than three days at a time except in case of sickness. Such leave is intended to meet special circumstances which cannot be foreseen. Ordinarily, the previous permission of the head of the department in the establishment shall be obtained before such leave is taken, but when this is not possible the head of the department shall, as soon as may be practicable, be informed in writing of the absence from and of the probable duration of such absence. 11. Payment of wages (1) Any wages, due to the workmen but not paid on the usual pay day on account of their being unclaimed, shall be paid by the employer on an unclaimed wage pay day in each week, which shall be notified on the notice-boards as aforesaid. (2) All workmen will be paid wages on a working day before the expiry of the seventh or the tenth day after the last day of the wage period in respect of which the wages are payable, according as the total number of workmen employed in the establishment does not or does exceed one thousand. 12. Stoppage of work (1) The employer may, at any time, in the event of fire, catastrophe, breakdown of machinery or stoppage of power supply, epidemics, civil commotion or other cause beyond his control, stop any section or sections of the establishment, wholly or partially for any period or periods without notice. (2) In the event of such stoppage during working hours, the workmen affected shall be notified by notices put upon the notice board in the department concerned, 14 [and at the office of the employer and at the time keepers office if any], as soon as practicable, when work will be resumed and whether they are to remain or leave their place of work. The workmen shall not ordinarily be required to remain for more than two hours after the commencement of the stoppage. If the period of detention does not exceed one hour the workmen so detained shall not be paid for the period of detention. If the period of detention exceeds one hour, the workmen so detained shall be entitled to receive wages for the whole of the time during which they are detained as a result of the stoppage. In the case of piece-rate workers, the average daily earning for the previous month shall be taken to be the daily wage. No other compensation will be admissible in case of such stoppage. Whenever practicable reasonable notice shall be given of resumption of normal work. (3) In case where workmen are laid off for short periods on account of failure of plant or a temporary curtailment of production, the period of unemployment shall be treated as compulsory HUMAN RESOURCE MANAGEMENT 12MBA26
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leave either with or without pay, as the case may be. When, however, workmen have to be laid off for an indefinitely long period, their services may be terminated after giving them due notice or pay in lieu thereof. (4) The employer may in the event of a strike affecting either wholly or partially any section or department of the establishment close down either wholly or partially such section or department and any other section or department affected by such closing down. The fact of such closure shall be notified by notices put on the notice board in the section or department concerned and in the time keepers office, if any, as soon as practicable. The workmen concerned shall also be notified by a general notice, prior to resumption of work, as to when work will be resumed. 13. Termination of employment (1) For terminating employment of a permanent workman, notice in writing shall be given either by the employer or the workman-one months notice in the case of monthly rated workmen and two weeks notice in the case of other workmen; one months or two weeks pay, as the case may be, may be paid in lieu of notice. (2) No temporary workman whether monthly-rated, weekly-rated or piece-rated and no probationer or badly shall be entitled to any notice or pay in lieu thereof if his services are terminated, but the services of a temporary workman shall not be terminated as a punishment unless he has been given an opportunity of explaining the charges of misconduct alleged against him in the manner prescribed in Paragraph 14. (3) Where the employment of any workman is terminated, the wages earned by him and other dues, if any, shall be paid before the expiry of the second working day from the day on which his employment is terminated. 14. Disciplinary action for misconduct (1) A workman may be fined up to two per cent of his wages in a month for the following acts and omissions, namely: 1 ______________________ 2_______________________ 3 ______________________ 4 ______________________ (2) A workman may be suspended for a period not exceeding four days at a time, or dismissed without notice or any compensation in lieu of notice, if he is found to be guilty of misconduct. (3) The following acts and omissions shall be treated as misconduct,- HUMAN RESOURCE MANAGEMENT 12MBA26
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(a) willful insubordination or disobedience, whether alone or in combination with others, to any lawful and reasonable order of a superior, (b) theft, fraud or dishonesty in connection with the employers business or property, (c) willful damage to or loss of employers goods or property, (d) taking or giving bribes or any illegal gratification, (e) habitual absence without leave or absence without leave for more than 10 days, (f) habitual late attendance, (g) habitual breach of any law applicable to the establishment, (h) riotous or disorderly behavior during working hours at the establishment or any act subversive of discipline, (i) habitual negligence or neglect of work, (j) frequent repetition of any act or omission for which a fine may be imposed to a maximum of 2 per cent of the wages in a month, (k) striking work or inciting others to strike work in contravention of the provisions of any law, or rule having the force of law. 15 [(4) (a) Where a disciplinary proceeding against a workman is contemplated or is pending or where criminal proceedings against him in respect of any offence are under investigation or trial and the employer is satisfied that it is necessary or desirable to place the workman under suspension, he may, by order in writing suspend him with effect from such date as may be specified in the order. A statement setting out in detail the reasons for such suspension shall be supplied to the workman within a week from a date of suspension. 16 [(b) A workman who is placed under suspension shall be paid subsistence allowance in accordance with the provisions of section 10A of the Act.] 17 [(ba) In the inquiry, the workman shall be entitled to appear in person or to be represented by an office bearer of a trade union of which he is a member. (bb) The proceedings of the inquiry shall be recorded in Hindi or in English or the language of the State where the industrial establishment is located, whichever is preferred by the workman. (bc) The proceedings of the inquiry shall be completed within a period of three months: PROVIDED that the period of three months may, for reasons to be recorded in writing, be extended by such further period as may be deemed necessary by the inquiry officer.] HUMAN RESOURCE MANAGEMENT 12MBA26
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(c) If on the conclusion of the inquiry or, as the case may be, of the criminal proceedings, the workman has been found guilty of the charges framed against him and it is considered, after giving the workman concerned a reasonable opportunity of making representation on the penalty proposed, that an order of dismissal or suspension or fine or stoppage of annual increment or reduction in rank would meet the ends of justice, the employer shall pass an order accordingly: PROVIDED that when an order of dismissal is passed under this clause, the workman shall be deemed to have been absent from duty during the period of suspension and shall not be entitled to any remuneration for such period, and the subsistence allowance already paid to him shall not be recovered: PROVIDED FURTHER that where the period between the date on which the workman was suspended from duty pending the inquiry or investigation or trial and the date on which an order of suspension was passed under this clause exceeds four days, the workman shall be deemed to have been suspended only for four days or for such shorter period as is specified in the said order of suspension and for the remaining period he shall be entitled to the same wages as he would have received if he had not been placed under suspension, after deducting the subsistence allowance paid to him for such period: PROVIDED ALSO that where an order imposing fine or stoppage of annual increment or reduction in rank is passed under this clause, the workman shall be deemed to have been on duty during the period of suspension and shall be entitled to the same wages as he would have received if he had not been placed under suspension, after deducting the subsistence allowance paid to him for such period: PROVIDED ALSO that in the case of a workman to whom the provisions of clause (2) of article 311 of the Constitution apply, the provisions of that article shall be complied with. (d) If on the conclusion of the inquiry, or as the case may be, of the criminal proceedings, the workman has been found to be not guilty of any of the charges framed against him, he shall be deemed to have been on duty during the period of suspension and shall be entitled to the same wages as he would have received if he had not been placed under suspension after deducting the subsistence allowance paid to him for such period. (e) The payment of subsistence allowance under this standing order shall be subject to the workman concerned not taking up any employment during the period of suspension.] 18 [(5)] In awarding punishment under this standing order, the 13 [authority imposing the punishment] shall take into account any gravity of the misconduct, the previous record, if any, of the workman and any other extenuating or aggravating circumstances, that may exist. A copy of the order passed by the 13 [authority imposing the punishment] shall be supplied to the workman concerned. 17 [(6) (a) A workman aggrieved by an order imposing punishment, may within twenty-one days from the date of receipt of the order, appeal to the appellate authority. HUMAN RESOURCE MANAGEMENT 12MBA26
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(b) The employer shall, for the purposes of clause (a), specify the appellate authority. (c) The appellate authority, after giving an opportunity to the workman of being heard, shall pass such order as he thinks proper on the appeal within fifteen days of its receipt and communicate the same to the workman in writing.] 15. Complaints All complaints arising out of employment including those relating to unfair treatment or wrongful exaction on the part of the employer or his agent, shall be submitted to the manager or other person specified in this behalf with the right of appeal to the employer. 16. Certificate on termination of service Every permanent workman shall be entitled to a service certificate at the time of his dismissal, discharge or retirement from service. 17. Liability of 13 [employer] The 13 [employer] of the establishment shall personally be held responsible for the proper and faithful observance of the standing orders. 17A. (1) Any person desiring to prefer an appeal in pursuance of sub-section (1) of section 6 of the Act shall draw up a memorandum of appeal setting out the ground of appeal and forward it in quintuplicate to the appellate authority accompanied by a certified copy of the standing orders, amendments, or modifications, as the case may be. (2) The appellate authority shall after giving the appellant an opportunity of being heard, confirm the standing orders, amendments or modifications as certified by the certifying officer unless it considers that there are reasons for giving the other parties to the proceedings a hearing before a final decision is made in the appeal. (3) Where the appellate authority does not confirm the standing orders, amendments or modifications it shall fix a date for the hearing of the appeal and direct notice thereof to be given- (a) where the appeal is filed by the employer or a workman, to trade unions of the workman of the industrial establishments, and where there are no such trade unions to the representatives of workman elected under clause (b) or rule 6, or as the case may be to the employer; (b) where the appeal is filed by a trade union to the employer and all other trade unions of the workmen of the industrial establishment; (c) where the appeal is filed by the representatives of the workmen, to the employer and any other workman whom the appellate authority joins as a party to the appeal. HUMAN RESOURCE MANAGEMENT 12MBA26
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(4) The appellant shall furnish each of the respondents with a copy of the memorandum of appeal. (5) The appellate authority may at any stage call for any evidence it considers necessary for the disposal of the appeal, (6) On the date fixed under sub-rule (3) for the hearing of the appeal, the appellate authority shall take such evidence as it may have called for or consider to be relevant. 18. Exhibition of standing orders A copy of these orders in English and in Hindi shall be posted at 19 [* * *] on a notice board maintained at or near the main entrance to the establishment and shall be kept in a legible condition.
Industrial Disputes Act Industry means any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft or industrial occupation or avocation of workmen
In Bangalore Water Supply & Sewerage Board v. Rajappa (1972 SCC 213 = 36 FLR 266 = 1978(2) SCR 213 = 1978(1) LLJ 349 = AIR 1978 SC 548 (SC 7 member bench 5 v 2 judgment), a very wide interpretation to the term 'industry' was given. It was held that profit motive or a desire to generate income is not necessary. Any systematic activity organized by cooperation between employer and employees for the production and/or distribution of goods and services calculated to satisfy human wants and wishes is industry. Thus, many hospitals, educational institutions, universities, charitable institutions and welfare organisations have got covered under the Act. Professions, clubs, cooperatives, research institutes etc. are also covered. Industry Dispute and Workman The definition of industrial dispute and workman is as follows -
Industrial Dispute Industrial dispute means any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms and conditions of employment or with the conditions of labour, of any person. [section 2(k)]. - - Section 2A provides that dismissal, discharge, retrenchment of even a single workman will be industrial dispute even if no other workman or any union is a party to the dispute. Workman Workman means any person (including apprentice) employed in any industry to do any manual, clerical or supervisory work for hire or reward. It includes dismissed, discharged or retrenched person also. However, it does not include (i) Armed Forces i.e. those subject to Air Force Act, Army Act or Navy Act (ii) Police or employees of prison (iii) Employed in mainly HUMAN RESOURCE MANAGEMENT 12MBA26
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managerial or administrative capacity or (iv) person in supervisory capacity drawing wages exceeding Rs 1,600 per month or functions are is mainly of managerial nature. [section 2(x)].
Adjudication of disputes The Act provides for Works Committee in factories employing 100 or more workers. [section 3]. The committee will consist of equal number of representatives of employer and employees. Representatives of employees will be selected in consultation with Registered Trade Union. The Works Committee will first try to settle disputes. If dispute is not solved, it will be referred to Conciliation Officer. He is appointed by Government. [section 4]. The matter may also be referred to Board of Conciliation. [section 4]. He will try to arrive at fair and amicable settlement acceptable to both parties. If he is unable to do so, he will send report to appropriate Government. [section 12(4)]. The Government may then refer the industrial dispute to Board of conciliation, Labour Court or Industrial Tribunal. [section 12(5)]. Employer and employees can voluntarily refer the matter to arbitration. [section 10A]. [This provision is very rarely used by employer and workmen. Generally, they prefer the Court route].
If no settlement is arrived at, there is three tier system of adjudication Labour Court, Industrial Tribunal and National Tribunal. The order made by them is award. Award means an interim or final determination of any industrial dispute or of any question relating thereto by any Labour Court, Industrial Tribunal or National Tribunal. It also includes arbitration award. [section 2(b)]. - - The award is required to be published by State/Central Government within 30 days. [section 17]. The award becomes effective 30 days after its publication. [section 17A].
Labour Court Labour Courts are constituted by State Governments u/s 7. It will be presided over by Presiding Officer. The Labour Court has powers in respect of * Interpretation of Standing Orders * Violation of Standing Orders * Discharge or dismissal of a workman * Withdrawal of any customary concession or privilege * Illegality or otherwise of a strike or lock- out * Other matters which are not under Industrial Tribunal. [Second Schedule to the Act]
Industrial tribunal Industrial Tribunal is constituted by State Government u/s 7A. The tribunal will be presided over by Presiding Officer. The Industrial Tribunal has powers in respect of * Wages, including period and mode of payment * Compensatory and other allowances * Hours of work and rest intervals * Leave with wages and holidays * Bonus, profit sharing, provident fund and gratuity * Shift working changes * Classification by grades * Rules of discipline * Ratinlanisation and retrenchment of workmen. [Third Schedule to Act]. National Tribunal National Tribunal is formed by Central Government for adjudication of industrial disputes of national importance or where industrial establishments situated in more than one States are involved. [section 7B].
Reference of dispute Appropriate Government can refer any dispute to Board of Conciliation, Court of Enquiry, Labour Court or Industrial Tribunal. [section 10(1)]. - - Appropriate Government means * Central Government in case of railways, docks, IFCI, ESIC, LIC, ONGC, UTI, Airport Authority, industry carried on by or under authority of Central Government * State Government in case of other industrial disputes [section 2(a)]. Court/Tribunal can reduce punishment and order reinstatement - As per section 11A, the Labour Court and Tribunal have wide powers. They can reappraise evidence. They can also see whether HUMAN RESOURCE MANAGEMENT 12MBA26
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the punishment is disproportionate to the gravity of the misconduct proved. If the Court or Tribunal is of the view that the punishment is disproportionate, it can impose lesser punishment or even set aside the termination and order reinstatement. - - If Court orders reinstatement and employer files appeal in Higher Court, the employer is required to pay full wages to the employee during the period of pendency of proceedings with High Court or Supreme Court. However, if the workman was gainfully employed elsewhere, Court can order that payment of such wages is not to be made. [section 17B]. Settlement - Settlement means a settlement arrived at in the course of conciliation proceedings. It includes a written agreement between employer and workmen arrived at otherwise than in course of conciliation proceedings (i.e. outside the conciliation proceedings). - - The difference is that settlement arrived at in course of conciliation or an arbitration award or award of labour court or Tribunal binds all parties to industrial dispute including present and future workmen and all parties who were summoned to appear in the proceedings. [section 18(3)]. If settlement is arrived at by mutual agreement, it binds only those who were actually party to agreement. [section 18(1)]. - - The settlement is binding during the period it is in force. Even after that period is over, it continues to be binding, unless a 2 month notice of termination is given by one party to another. [section 19(2]. - - If no period has been specified, settlement is valid for 6 months and an award is valid for one year. Jurisdiction of civil court qua industrial dispute Termination of a workman constitutes an Industrial Dispute. Relief sought can be given by forum under Industrial Disputes Act and hence, jurisdiction of civil court is impliedly barred. Chandrakant Tukaram Nikam v. Municipal Corporation 2002 AIR SCW 710 = 2002(2) SCALE 77 = 2002 LLR 498 = 100 FJR 519 (SC 3 member bench).
Lay off, retrenchment and closure Lay off means failure, refusal or inability of employer on account of shortage of coal, power or raw materials or accumulation of stock or break down of machinery or natural calamity; to give employment to a workman on muster roll. - - Lay off means not giving employment within two hours after reporting to work. - - Lay off can be for half day also. In such case, worker can be asked to come in second half of the shift. [section 2(kkk)].
A factory employing 50 or more but less than 100 employees on an average per working day can lay off the workmen, who have completed one year of service, by paying compensation equal to 50% of salary (basic plus DA) (section 25C of IDA). - - Employer can offer him alternate employment, if the alternate employment does not call for any special skill or previous experience, and lay off compensation will not be payable if employee refuses to accept the alternate employment (section 25E).
Above provisions of compensation for lay off do not apply to (a) Industrial establishments employing less than 50 workmen (b) seasonal industry (c) Establishments employing 100 or more workmen, as in their case, prior approval of Appropriate Government is necessary u/s 25M(1).
Retrenchment Retrenchment means termination by the employer of service of a workman for any reason, other than as a punishment inflicted by a disciplinary action. However, HUMAN RESOURCE MANAGEMENT 12MBA26
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retrenchment does not include voluntary retirement or retirement on reaching age of superannuation or termination on account of non-renewal of contract or termination on account of continued ill-health of a workman. [section 2(oo)].
Retrenchment means discharge of surplus labour or staff by employer. It is not by way of punishment. The retrenchment should be on basis of last in first out basis in respect of each category, i.e. junior-most employee in the category (where there is excess) should be retrenched first. [section 25G]. If employer wants to re-employer persons, first preference should be given to retrenched workmen. [section 25H].
A worker who has completed one year of service can be retrenched by giving one month notice (or paying one months salary) plus retrenchment compensation, at the time of retirement, @ 15 days average wages for every completed year of service (section 25F).
In Parrys Employees Union v. Third Industrial Tribunal 2001 LLR 462 (Cal HC), it was held that for purposes of retrenchment compensation under ID Act, the monthly salary should be divided by 30. [Under Gratuity Act, it has to be divided by 26].
If number of workmen are 100 or more, prior permission of Appropriate Government is necessary u/s 25N(1)].
Meaning of continuous service Provisions of compensation for lay off and retrenchment are applicable only to workman who is in continuous service for one year. As per section 25B, continuous service includes service interrupted by sickness, authorised leave, accident or strike which is not illegal, or lock-out or cessation of work which is not due to fault of workman. -- In Workmen v. Management of American Express AIR 1986 SC 548 = 1985(4) SCC 71, it was held that actually worked cannot mean only those days where workman worked with hammer, sickle or pen, but must necessarily comprehend all those days during which he was in the employment of employer and for which has been paid wages either under express of implied contract of service or by compulsion of statute, standing orders etc.
Closure Closure means permanent closing down of a place of employment or part thereof. [section 2(cc)]. - - Thus, closure can be of part of establishment also. - - 60 days notice should be given for closure to Government, if number of persons employed are 50 or more. 60 days notice is not necessary if number of persons employed are less than 50. [section 25FFA]. Compensation has to be given as if the workman is retrenched. [section 25FFF(1)]. - - If number of workmen employed are 100 or more, prior permission of Government is necessary for closure u/s 25-O.
Provisions for large industries for lay off and closure - Large industries employing 100 or more workmen on an average for preceding 12 months cannot lay-off, retrench or close down the undertaking without permission from Government (sections 25M to 25-O of Industrial Disputes Act). Invariably, such permission is almost never given, whatever may be the merits of the case. HUMAN RESOURCE MANAGEMENT 12MBA26
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Provisions of section 25M in respect of prior permission for lay off have been upheld in Papnasan Labour Union v. Madura Coats AIR 1995 SC 2200. Provisions of section 25N were upheld in Workmen v. Meenakshi Mills Ltd. - (1992) 62 Taxman 560 = 1992(1) SCALE 1248 = 1992 AIR SCW 1378 = (1992) 3 SCC 336 = JT 1992(3) SC 446 = 1992 LLR 481 = AIR 1994 SC 2696 (5 member bench). In this case, it was held that powers to give prior permission are quasi-judicial and hence opportunity of hearing must be given and the order giving permission or refusing permission is subject to judicial review. In Bharatia Electric Steel Co. Ltd. v. State of Haryana 1998 LLR 322 (P&H HC DB), it was observed that operation of section 25-O should be limited to cases where employer is acting arbitrarily or unfairly. If the reasons given by employer for closure are genuine and adequate, permission cannot be refused.
In Orissa Textiles v. State of Orissa 2002 AIR SCW 333 = 2002 LLR 225 = 100 FJR 342 (SC 5 member Constitution Bench), it was held that order u/s 35-O should be in writing with reasons. The order can be reviewed after one year, even for the same reasons.
If Banks refuse to give further loans to run the plant, the employer has to either abandon the plant or devise some dubious ways to surmount the difficulties. One of the major reason why foreign investors are reluctant to come to India in a big way is lack of exit policy. Some industrial sickness and closures are inevitable in a market oriented economy. Absence of official exit policy creates problems for honest employers (Dishonest employers devise their own ways).
Notice of change in conditions of service Section 9A provides that an employer cannot effect any change in the conditions of service applicable to any workman without giving 21 days notice. Such notice is not required if there is settlement or award of Labour Court or Tribunal. As per fourth schedule to the Act, such 21 day notice is required if there is going to be change in wages, wage period, PF contribution, allowances, hours of work and rest intervals, shift timings, new rules of discipline, increase or decrease in number of persons employed in any department or shift.
Strike and lock-out Strike means a cessation of work by a body of persons employed in any industry, acting in combination, or a concerted refusal, or a refusal under a common understanding, of any number of persons who are or have been so employed to continue to work or to accept employment. [section 2(q)].
As per section 23, workman should not go on strike in * during pendency of conciliation proceedings and 7 days thereafter * during pendency of proceedings before Labour Court, Industrial Tribunal or National Tribunal * During period of arbitration proceedings * During period when settlement or award is in operation in respect of the matters covered by award or settlement.
Prohibition of strike and lock out in public utility service - .In case of public utility, employees have to give at least 14 days notice for strike. The notice is valid only if strike commences within HUMAN RESOURCE MANAGEMENT 12MBA26
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6 weeks. Otherwise, fresh notice is required. - - Similarly, an employer cannot declare lock out without giving 14 days notice. [section 22]. If such notice is received, Government authority should be informed within five days. - - As per section 2(n), Public Utility Service includes railways, major port and docks, section of industry on the working of which safety of establishment depends, postal/telegraph/ telephone services, industry supplying power/ light/ water; system of public conservancy or sanitation. [section 2(n)]. In addition, Government can declare industry specified in Schedule I as Public Utility Services. Such declaration can be made for 6 months at a time [section 2(n)(vi)]. [Industries in first schedule include banking, transport, cement, coal, defence establishments, security press, hospitals and dispensaries, oil fields, mining of certain specified ores, foodstuff, cotton textiles, iron and steel etc].
Lock-out Lock-out means temporary closing or a place of employment or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him. [section 2(l)]. - - Workers go on strike, while lock-out is to be declared by employer.
Wages during strike period - Wages during strike period are payable only if the strike is both legal and justified - Syndicate Bank v. K Umesh Naik (1994) 5 SCC 572 = 1994 AIR SCW 4496 = 1994 II LLJ 836 = 1994 II LLN 1296 = (1994) 3 SCALE 565 = AIR 1995 SC 319 = 1994 II CLR 753 = 1994 LLR 883 (SC constitution bench) - followed in HMT Ltd. v. HMT Head Office Employees Assn 1997 AIR SCW 153 = AIR 1997 SC 585 = 1997 LLR 758. In HAL Employees Union v. Presiding Officer 1996 LLR 673 (SC), it was held that when lockout by employer is legal and justified, workmen are not entitled to payment of wages for the period during which the lock-out continued.
No work no pay - Principle of No work no pay has been accepted by Supreme Court. - Bank of India v. T S Kelawala 1989 LLR 277 (1990 LLR 313 ?) = 1990(SUP) SCALE 140(2) = (1990) 4 SCC 744 (SC) * Syndicate Bank v. K Umesh Naik (1994) 5 SCC 572 = 1994 AIR SCW 4496 = 1994 II LLJ 836 = 1994 II LLN 1296 = AIR 1995 SC 319 = 1994(3) SCALE 565 = 1994 II CLR 753 = 1994 LLR 883 (SC constitution bench). The principle of no work no pay is also applicable when a man was eligible for promotion but was not promoted and in fact did not work in the higher post. In such case, he is not eligible to get pay for higher scale - Paluru Ramkrishnaiah v. UOI - (1989) 2 SCR 92 - followed in State of Haryana v. OP Gupta - 1996(1) SCALE 602.
Illegal strike or lock-out Strike or lock out in violation of sections 22 or 23 and when it is continuing in violation of order issued by Government u/s 10(3) (when matter is referred to Conciliation Board or Tribunal) is illegal. [section 24]. Fine upto Rs 50 per day to workman and Rs 1,000 to employer can be imposed. In addition, he can be imprisoned upto one month. [section 26].
Restrictions on employer pending proceedings If any conciliation proceedings or proceedings are pending before arbitrator, labour court or Industrial Tribunal, following restrictions are applicable to employer.
No change in conditions of service in matters related to dispute Employer shall not make any HUMAN RESOURCE MANAGEMENT 12MBA26
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change in condition of service connected to dispute without permission of authority before whom proceedings are pending. [section 33(1)(a)]. Change which is not related to dispute can be made in accordance with standing orders without any permission. [section 33(2)(a)]
No removal of workman in matters related to dispute Employer shall not discharge, dismiss or punish any workman in matter for any misconduct concerned to dispute, without permission of authority before whom proceedings are pending. [section 33(1)(b)]. Punishment which is not connected to dispute can be made in accordance with standing orders without any permission. However, dismissal or discharge of workman will require approval of the action. Application for approval should be made after action is taken. [section 33(2)(b)]. Prior permission is not necessary. Application for approval is required to be submitted after action is already taken. - -In Jaipur Zila Sahakari Bhoomi Vikas Bank v. Shri Ram Gopal 2002 AIR SCW 249 = 2002 LLR 237 (SC 5 member constitution bench), it was held that if the approval is not granted u/s 33(2)(b) of Industrial Disputes Act, the order of dismissal becomes ineffective from the date it was passed and employee becomes entitled to wages from date of dismissal to date of disapproval of application.
Protected workman - In every establishment, 1% of total workmen are recognised as Protected workman u/s 33(3) (but minimum 5 and maximum 100). In case of such workmen, order for his dismissal, discharge or punishment cannot be passed without permission of authority before whom proceedings are pending, whether the issue is related to dispute or not. Such permission is required only during the period proceedings are pending and not after main reference is decided.
Unfair Labour Practices Section 25T prohibits unfair labour practices by employer or workman or a trade union. If any person commits unfair labour practice, he is punishable with fine upto Rs 1,000 and imprisonment upto 6 months. [section 25U]. Fifth schedule to Act gives list of what are Unfair Labour Practices. Then major are as follows
In case of employer - * Interfering in Trade Union activities * Threatening workmen to refrain them from trade union activities * Establish employer sponsored Trade Union * Discourage trade union activities by various means * Discharge or dismiss by way of victimization or falsely implicating workman * Abolish work of regular nature and to give that work to contractors * Mala fide transfer of workman under guise of management policy * Employ badli or casuals and continue them for years * Recruitment workmen during strike which is not illegal * Acts of force and violence * Not implementing settlement or agreement or award * Refuse collective bargaining * Continue illegal lock-out
In case of workmen and trade unions - * Support or instigate illegal strike * Coerce workmen to join or not to join a particular trade union * Threatening or intimidating workmen who do not join strike * Refuse collective bargaining in good faith * Coercive actions including go slow, gherao, squatting on work premises after working hours etc. * Wilful damage to employers property * Acts of force or violence or intimidation.
Industrial Employment (Standing Orders) Act
There are service conditions or service rules for various employees like Government HUMAN RESOURCE MANAGEMENT 12MBA26
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employees, bank employees, LIC employees etc. The Industrial Employment (Standing Orders) Act, 1947 is designed to provide service rules to workmen.
The object of the Act is to require employers in industrial establishments to formally define conditions of employment under them.
What are Standing Orders - Standing Orders means rules of conduct for workmen employed in industrial establishments. Standing orders means rules relating to matters set out in the schedule to the Act. [section 2(g)]. The schedule to the Act requires that following should be specified in Standing Orders - (a) classification of workmen i.e. temporary, badli, casual, permanent, skilled etc. (b) manner of intimating to workmen working hours, shift working, transfers etc. (c) Holidays (d) Attendance and late coming rules (e) Leave rules (f) Leave eligibility and leave conditions (g) Closing and reopening of sections of industrial establishment (h) termination of employment, suspension, dismissal etc. for misconduct and acts or omissions which constitute misconduct (i) Retirement age (j) Means of redressal of workmen against unfair treatment or wrongful exactions by employer (k) Any other matter that may be prescribed.
Coverage of Act - The Act is applicable to all industrial establishments employing 100 or more workmen. [section 1(3)].
Industrial establishment means (i) an industrial establishment as defined in section 2(i) of Payment of Wages Act (ii) Factory as defined in section 2(m) of Factories Act (iii) Railway (iv) Establishment of contractor who employs workmen for fulfilling contract with owner of an industrial establishment. [section 2(e)].
The term industrial establishment includes factory, transport service, construction work, mines, plantation, workshop, building activity, transmission of power etc.
Workman - Workman has meaning assigned to it under section 2(s) of Industrial Disputes Act. [section 2(i)]. Thus, workman includes skilled, unskilled, manual or clerical work. However, workman does not include employees engaged in managerial or administrative capacity or supervisory capacity. Workman does not include workers subject to Army Act, Navy Act or Air Force Act or to police or prison services.
Approval of Standing Orders - Every employer covered under the Act has to prepare Standing Orders, covering the matters required in the Standing Orders. Five copies of these should be sent to Certifying Officer for approval. [section 3(1)]. Certifying Officer means Labour Commissioner and any officer appointed by Government to be Certifying Officer. [section 2(c)].
The Certifying Officer will inform the Union and workmen and hear their objections. After that, he will certify the Standing Orders for the industrial establishment. [section 5]. Till standing orders are certified, Model Standing Order prepared by Government will automatically apply. [section12A].
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Standing order should be displayed in English and local language on special notice boards at or near entrance of the establishment. [section 9]. Modifications of Standing Order shall be done by following similar procedure. [section 10].
Once the Standing Orders are certified, they supersede any term and condition of employment, contained in the appointment letter. If there is inconsistency between Standing Order and Appointment Letter, the provisions of Standing Order prevail - Eicher Goodearth Ltd. v. R K Soni - (1993) XXIV LLR 524 = 1993 LLR 524 (Raj HC) * Printers House v. State of Haryana 1982 II LLN 327.
Standing orders are binding on employer and employee. These are statutorily imposed conditions of service. However, they are not statutory provisions themselves (meaning that the Standing Orders even when approved, do not become law in the sense in which Rules and Notifications issued under delegated legislation become after they are published as prescribed.) - Rajasthan SRTC v. Krishna Kant - AIR 1995 SC 1715 = (1995) 5 SCC 75 = 71 FLR 211 = 87 FJR 204 = 1995 AIR SCW 2683 = 1995 LLR 481 (SC).
Model Standing Orders - The Act has prescribed Model Standing Orders. These are automatically applicable till employer prepares his own Standing Orders and these are approved by Certifying Officer. [section 12A].
Disciplinary Action - The most important use of Standing Orders is in case of disciplinary action. A workman can be punished only if the act committed by him is a misconduct as defined under the Standing Orders. The Model Standing Orders contain such acts like insubordination, disobedience, fraud, dishonesty, damage to employers property, taking bribe, habitual absence or habitual late attendance, riotous behaviour, habitual neglect of work, strike in contravention of rules etc. as misconducts. The Certified Standing Orders may cover other acts as misconduct, if approved by Certifying Officer.
Subsistence Allowance Where a workman is suspended by employer pending investigation or enquiry into complaints or charges of misconduct against him, the workman shall be paid subsistence allowance equal to 50% of wages for first 90 days of suspension and 75% of wages for remaining period till completion of disciplinary proceedings. [section 10A(1)]. - - Wages has same meaning as under section 2(rr) of Industrial Disputes Act. [section 2(i)]. Statutory aspects of health, welfare and safety of employees This Act may be called the Factories Act, 1948. 1 [(2) It extends to the whole of India 2 [* * *]. (3) It shall came into force on the lst day of April, 1949. Interpretation HUMAN RESOURCE MANAGEMENT 12MBA26
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In this Act, unless there is anything repugnant in the subject or context,- (a) "adult" means a person who has completed his eighteenth year of age; (b) "adolescent" means a person who has completed his fifteenth year of age but has not completed his eighteenth year; 3 [(bb) "calendar year" means the period of twelve months beginning with the first day of January in any year;] (c) "child" means a person who has not completed his fifteenth year of age; 4 [(ca) "competent person", in relation to any provision of this Act, means a person or an institution recognized as such by the Chief Inspector for the purposes of carrying out tests, examinations and inspections required to be done in a factory under the provisions of this Act having regard to- (i) the qualifications and experience of the person and facilities available at his disposal; or (ii) the qualifications and experience of the persons employed in such institution and facilities available therein, with regard to the conduct of such tests, examinations and inspections, and more than one person or institution can be recognized as a competent person in relation to a factory; (cb) "hazardous process" means any process or activity in relation to an industry specified in the First Schedule where, unless special care is taken, raw materials used therein or the intermediate or finished products, bye-products, wastes, or effluents thereof would- (i) cause material impairment to the health of the persons engaged in or connected therewith, or (ii) result in the pollution of the general environment: PROVIDED that the State Government may, by notification in the Official Gazette, amend the First Schedule by way of addition, omission or variation of any industry, specified in the said Schedule;] (d) "young person" means a person who is either a child or an adolescent; (e) "day" means a period of twenty-four hours beginning at midnight; (f) "week" means a period of seven days beginning at midnight on Saturday night or such other night as may be approved in writing for a particular area by the Chief Inspector of Factories; HUMAN RESOURCE MANAGEMENT 12MBA26
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(g) "power" means electrical energy, or any other form of energy which is mechanically transmitted and is not generated by human or animal agency; (h) "prime mover" means any engine, motor or other appliance which generates or otherwise provides power; (i) "transmission machinery" means any shaft, wheel drum, pulley, system of pulleys, coupling, clutch, driving belt or other appliance or device by which the motion of a prime mover is transmitted to or received by any machinery or appliance; (j) "machinery" includes prime movers, transmission machinery and all other appliances whereby power is generated, transformed, transmitted or applied; (k) "manufacturing process" means any process for- (i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal, or 5 [(ii) pumping oil, water, sewage or any other substance; or] (iii) generating, transforming or transmitting power; or 6 [(iv) composing types for printing, printing by letter press, lithography, photogravure or other similar process or book binding;] 7 [or] (v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; 7 [or] 7 [(vi) preserving or storing any article in cold storage;] (l) "worker" means a person 8 [employed, directly or by or through any agency (including a contractor) with or without the knowledge of the principal employer, whether for remuneration or not], in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any other kind of work incidental to, or connected with, the manufacturing process, or the subject of the manufacturing process 7 [but does not include any member of the armed forces of the Union]; (m) "factory" means any premises including the precincts thereof- (i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or HUMAN RESOURCE MANAGEMENT 12MBA26
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(ii) Whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on,- but does not include a mine subject to the operation of 9 [the Mines Act, 1952 (35 of 1952)] or
10 [a mobile unit belonging to the armed forces of the Union, a railway running shed or a hotel, restaurant or eating place]. 7 [Explanation 11 [I ] :For computing the number of workers for the purposes of this clause all the workers in 12 [different groups and relays] in a day shall be taken into account;] 13 [Explanation I I : For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a Computer Unit is installed in any premises or part thereof, shall not be construed to make it a factory if no manufacturing process is being carried on in such premises or part thereof;] (n) "occupier" of a factory means the person who has ultimate control over the affairs of the factory 14 [***]; 13 [PROVIDED that (i) in the case of a firm or other association of individuals, any one of the individual partners or members thereof shall be deemed to be the occupier; (ii) in the case of a company, any one of the directors shall be deemed to be the occupier; (iii) in the case of a factory owned or controlled by the Central Government or any State Government, or any local authority, the person or persons appointed to manage the affairs of the factory by the Central Government, the State Government or the local authority, as the case may be, shall be deemed to be the occupier:] 7 [ 15 [PROVIDED FURTHER that] in the case of a ship which is being repaired, or on which maintenance work is being carried out, in a dry dock which is available for hire,- (1) the owner of the dock shall be deemed to be the occupier for the purposes of any matter provided for by or under (a) section 6, section 7, 4 [section 7A, section 7B,] section 11 or section 12; (b) section 17, in so far as it relates to the providing and maintenance of sufficient and suitable lighting in or around the dock; (c) section 18, section 19, section 42, section 46, section 47 or section 49, in relation to the workers employed on such repair or maintenance; HUMAN RESOURCE MANAGEMENT 12MBA26
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(2) the owner of the ship or his agent or master or other office-in-charge of the ship or any person who contracts with such owner, agent or master or other officer-in-charge to carry out the repair or maintenance work shall be deemed to be the occupier for the purposes of any matter provided for by or under section 13, section 14, section 16 or section 17 (save as otherwise provided in this proviso) or Chapter IV (except section 27) or section 43, section 44, or section 45, Chapter VI, Chapter VII, Chapter VIII or Chapter IX or section 108, section 109 or section 110, in relation to- (a) the workers employed directly by him, or by or through any agency; and (b) the machinery, plant or premises in use for the purpose of carrying out such repair or maintenance work by such owner, agent, master or other officer-in-charge or person;] 16 [***] (p) "prescribed" means prescribed by rules made by the State Government under this Act; 17 [* * *] (r) where work of the same kind is carried out by two or more sets of workers working during different periods of the day, each of such sets is called a 18 ["group" or "relay"] and each of such periods is called a "shift". Comment: Reading these provisions together, it is quite reasonable and legitimate to hold that a person to be a worker within the meaning of the Factories Act must be a person employed in the premises or the precincts of the factory. As held by this court in the State of Uttar Pradesh v. M. P. Singh (1960) 2 SCR 605: (AIR 1960 SC 569) field workers who are employed in guiding, supervising and controlling the growth and supply of sugar cane to be used in the factory are not employed either in the precincts of the factory or in the premises of the factory. Hence the provisions of the Factories Act do not apply to them. AIR 1978 SUPREME COURT 849, Rohtas Industries Ltd v. Ramlakhan Singh 1. Cleanliness (1) Every factory shall be kept clean and free from effluvia arising from any drain, privy or other nuisance, and in particular- (a) accumulation of dirt and refuse shall be removed daily by sweeping or by any other effective method from the floors and benches of workrooms and from staircases and passages, and disposed of in a suitable manner; (b) the floor of every workroom shall be cleaned at least once in every week by washing, using disinfectant, where necessary, or by some other effective method; HUMAN RESOURCE MANAGEMENT 12MBA26
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(c) Where a floor is liable to become wet in the course of any manufacturing process to such extent as is capable of being drained, effective means of drainage shall be provided and maintained; (d) all inside walls and partitions, all ceilings or tops of rooms and all walls, sides and tops of passages and staircases shall- (i) where they are 30 [painted otherwise than with washable water-paint] or varnished, be repainted or revarnished at least once in every period of five years; 31 [(ia) Where they are painted with washable water-paint, be repainted with at least one coat of such paint at least once in every period of three years and washed at least once in every period of six months;] (ii) where they are painted or varnished or where they have smooth impervious surfaces, be cleaned at least once in every period of fourteen months by such method as may be prescribed; (iii) in any other case, be kept whitewashed or colour washed, and the whitewashing or colour washing shall be carried out at least once in every period of fourteen months; 7 [(dd) all doors and window frames and other wooden or metallic framework and shutters shall be kept painted or varnished and the painting or varnishing shall be carried out at least once in every period of five years;] (e) the dates on which the processes required by clause (d) are carried out shall be entered in the prescribed register. (2) If, in view of the nature of the operations carried on 32 [in a factory or class or description of factories or any part of a factory or class or description of factories], it is not possible for the occupier to comply with all or any of the provisions of sub-section (1), the State Government may by order exempt such factory or class or description of factories 7 [or part] from any of the provisions of that sub-section and specify alternative methods for keeping the factory in a clean state. Disposal of wastes and effluents 33 [(1) Effective arrangements shall be made in every factory for the treatment of wastes and effluents due to the manufacturing process carried on therein, so as to render them innocuous, and for their disposal.] (2) The State Government may make rules prescribing the arrangements to be made under sub- section (1) or requiring that the arrangements made in accordance with sub-section (1) shall be approved by such authority as may be prescribed. HUMAN RESOURCE MANAGEMENT 12MBA26
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. Ventilation and temperature (1) Effective and suitable provision shall be made in every factory for securing and maintaining in every workroom (a) adequate ventilation by the circulation of fresh air, and (b) such a temperature as will secure to workers therein reasonable conditions of comfort and prevent injury to health; and in particular,- (i) walls and roofs shall be of such material and so designed that such temperature shall not be exceeded but kept as low as practicable; (ii) where the nature of the work carried on in the factory involves, or is likely to involve, the production of excessively high temperatures, such adequate measures as are practicable shall be taken to protect the workers there from, by separating the process which produces such temperatures from the workroom, by insulating the hot parts or by other effective means. (2) The State Government may prescribe a standard of adequate ventilation and reasonable temperature for any factory or class or description of factories or parts thereof and direct that 18 [proper measuring instruments, at such places and in such position as may be specified, shall be provided and such records, as may be prescribed, shall be maintained.] 34 [(3) If it appears to the Chief Inspector that excessively high temperatures in any factory can be reduced by the adoption of suitable measures, he may, without prejudice to the rules made under sub-section (2), serve on the occupier, an order in writing specifying the measures which, in his opinion, should be adopted, and requiring them to be carried out before a specified date.] Dust and fume (1) In every factory in which, by reason of the manufacturing process carried on, there is given off any dust or fume or other impurity of such a nature and to such an extent as is likely to be injurious or offensive to the workers employed therein, or any dust in substantial quantities, effective measures shall be taken to prevent its inhalation and accumulation in any workroom, and if any exhaust appliance is necessary for this purpose, it shall be applied as near as possible to the point of origin of the dust, fume or other impurity, and such point shall be enclosed so far as possible. (2) In any factory no stationary internal combustion engine shall be operated unless the exhaust is conducted into the open air, and no other internal combustion engine shall be operated in any room unless effective measures have been taken to prevent such accumulation of fumes there from as are likely to be injurious to workers employed in the room. Artificial humidification HUMAN RESOURCE MANAGEMENT 12MBA26
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(1) In respect of all factories in which the humidity of the air is artificially increased, the State Government may make rules,- (a) prescribing standards of humidification; (b) regulating the methods used for artificially increasing the humidity of the air; (c) directing prescribed tests for determining the humidity of the air to be correctly carried out and recorded; (d) prescribing methods to be adopted for securing adequate ventilation and cooling of the air in the workrooms. (2) In any factory in which the humidity of the air is artificially increased, the water used for the purpose shall be taken from a public supply, or other source of drinking water, or shall be effectively purified before it is so used. (3) If it appears to an Inspector that the water used in a factory for increasing humidity which is required to be effectively purified under sub-section (2) is not effectively purified he may serve on the manager of the factory an order in writing, specifying the measures which in his opinion would be adopted, and requiring them to be carried out before specified date. Overcrowding (1) No room in any factory shall be overcrowded to an extent injurious to the health of the workers employed therein. (2) Without prejudice to the generality of sub-section (1), there shall be in every work room of a factory in existence on the date of the commencement of this Act at least 35 [9.9 cubic meters] and of a factory built after the commencement of this Act at least 36 [4.2 cubic meters] or space for every worker employed therein, and for the purposes of this sub-section no account shall be taken of any space which is more than 37 [4.2metres] above the level of the floor of the room. (3) If the Chief Inspector by order in writing so requires, there shall be posted in each workroom of a factory a notice specifying the maximum number of workers who may, in compliance with the provisions of this section, be employed in the room. (4) The Chief Inspector may, by order in writing exempt subject to such conditions, if any, as he may think fit to impose, any workroom from the provisions of this section, if he is satisfied that compliance therewith in respect of the room is unnecessary in the interest of the health of the workers employed therein. . Lighting (1) In every part of a factory where workers are working or passing there shall be provided and maintained sufficient and suitable lighting, natural or artificial, or both. HUMAN RESOURCE MANAGEMENT 12MBA26
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(2) In every factory all glazed windows and skylights used for the lighting of the workroom shall be kept clean on both the inner and outer surfaces and so far as compliance with the provisions of any rules made under sub-section (3) of section 13 will allow, free from obstruction. (3) In every factory effective provision shall, so far as is practicable, be made for the prevention of- (a) glare, either directly from a source of light or by reflection from a smooth or polished surface; (b) the formation of shadows to such an extent as to cause eye-strain or the risk of accident to any worker. (4) The State Government may prescribe standards of sufficient and suitable lighting for factories or for any class or description of factories or for any manufacturing process. Latrines and urinals (1) In every factory- (a) sufficient latrine and urinal accommodation of prescribed types shall be provided conveniently situated and accessible to workers at all times while they are at the factory; (b) separate enclosed accommodation shall be provided for male and female workers; (c) such accommodation shall be adequately lighted and ventilated, and no latrine or urinal shall, unless specially exempted in writing by the Chief Inspector, communicate with any workroom except through an intervening open space or ventilated passage; (d) all such accommodation shall be maintained in a clean and sanitary condition at all times; (e) sweepers shall be employed whose primary duty it would be to keep clean latrines, urinals and washing places. (2) In every factory wherein more than two hundred and fifty workers are ordinarily employed- (a) all latrine and urinal accommodation shall be of prescribed sanitary types; (b) the floors and internal walls, up to a height of 39 [ninety centimeters], of the latrines and urinals and the sanitary blocks shall be laid in glazed tiles or otherwise finished to provide a smooth polished impervious surface; (c) without prejudice to the provisions of clauses (d) and (e) of sub-section (1), the floors, portions of the walls and blocks so laid or finished and the sanitary pans of latrines and HUMAN RESOURCE MANAGEMENT 12MBA26
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urinals shall be thoroughly washed and cleaned at least once in every seven days with suitable detergents or disinfectants or with both. (3) The State Government may prescribe the number of latrines and urinals to be provided in any factory in proportion to the numbers of male and female workers ordinarily employed therein, and provide for such further matters in respect of sanitation in factories, including the obligation of workers in this regard, as it considers necessary in the interest of the health of the workers employed therein. Spittoons (1) In every factory there shall be provided a sufficient number of spittoons in convenient places and they shall be maintained in a clean and hygienic condition. (2) The State Government may make rules prescribing the type and the number of spittoons to be provided and their location in any factory and provide for such further matters relating to their maintenance in a clean and hygienic condition. (3) No person shall spit within the premises of a factory except in the Spittoons provided for the purpose and a notice containing this provision and the penalty for its violation shall be prominently displayed at suitable places in the premises. (4) Whoever spits in contravention of sub-section (3) shall be punishable with fine not exceeding five rupees. 21 Fencing of machinery 22. Work on or near machinery in motion 23. Employment of young persons on dangerous machines 24. Striking gear and devices for cutting off power
25. Self-acting machines
26. Casing of new machinery 27. Prohibition of employment of women and children near cotton-openers
(1) In every factory the following, namely: (i) every moving part of a prime mover and every flywheel connected to a prime mover, whether the prime mover or flywheel is in the engine house or not; (ii) the headrace and tailrace of every water-wheel and water turbine; HUMAN RESOURCE MANAGEMENT 12MBA26
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(iii) any part of a stock-bar which projects beyond the head stock of a lathe; and (iv) unless they are in such position or of such construction as to be safe to every person employed in the factory as they would be if they were securely fenced, the following, namely,- (a) every part of an electric generator, a motor or rotary convector; (b) every part of transmission machinery; and (c) every dangerous part of any other machinery; shall be securely fenced by safeguards of substantial construction which 40 [shall be constantly maintained and kept in position] while the parts of machinery they are fencing are in motion or in use: 41 [PROVIDED that for the purpose of determining whether any part of machinery is in such position or is of such construction as to be safe as aforesaid, account shall not be taken of any occasion when- (i) it is necessary to make an examination of any part of the machinery aforesaid while it is in motion or, as a result of such examination, to carry out lubrication or other adjusting operation while the machinery is in motion, being an examination or operation which it is necessary to be carried out while that part of the machinery is in motion, or (ii) in the case of any part of a transmission machinery used in such process as may be prescribed (being a process of a continuous nature the carrying on of which shall be, or is likely to be, substantially interfered with by the stoppage of that part of the machinery), it is necessary to make an examination of such part of the machinery while it is in motion or, as a result of such examination, to carry out any mounting or shipping of belts or lubrication or other adjusting operation while the machinery is in motion, and such examination or operation is made or carried out in accordance with the provisions of sub-section (1) of section 22.] (2) The State Government may by rules prescribe such further precautions as it may consider necessary in respect of any particular machinery or part thereof, or exempt, subject to such condition as may be prescribed, for securing the safety of the workers, any particular machinery or part thereof from the provisions of this section. 42. Washing facilities (1) In every factory,- (a) adequate and suitable facilities for washing shall be provided and maintained for the use of the workers therein; HUMAN RESOURCE MANAGEMENT 12MBA26
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(b) separate and adequately screened facilities shall be provided for the use of male and female workers; (c) such facilities shall be conveniently accessible and shall be kept clean. (2) The State Government may, in respect of any factory or class or description of factories or of any manufacturing process, prescribe standards of adequate and suitable facilities for washing. 43. Facilities for storing and drying clothing The State Government may, in respect of any factory or class or description of factories, make rules requiring the provision therein of suitable places for keeping clothing not worn during working hours and for the drying of wet clothing. 45. First-aid appliances (1) There shall in every factory be provided and maintained so as to be readily accessible during all working hours first-aid boxes or cupboards, equipped with the prescribed contents, and the number of such boxes or cupboards to be provided and maintained shall not be less than one for every one hundred and fifty workers ordinarily employed 3 [at any one time] in the factory. 64 [(2) Nothing except the prescribed contents shall be kept in a first-aid box or cupboard. (3) Each first-aid box or cupboard shall be kept in the charge of a separate responsible person 65 [who holds a certificate in first-aid treatment recognized by the State Government] and who shall always be readily available during the working hours of the factory]. 66 [(4)] In every factory wherein more than five hundred workers are 67 [ordinarily employed] there shall be provided and maintained an ambulance room of the prescribed size, containing the prescribed equipment and in the charge of such medical and nursing staff as may be prescribed 68 [and those facilities shall always be made readily available during the working hours of the factory]. Creches (1) In every factory wherein more than 69 [thirty women workers] are ordinarily employed there shall be provided and maintained a suitable room or rooms for the use of children under the age of six years of such women. (2) Such rooms shall provide adequate accommodation, shall be adequately lighted and ventilated, shall be maintained in a clean and sanitary condition and shall be under the charge of women trained in the care of children and infants. (3) The State Government may make rules HUMAN RESOURCE MANAGEMENT 12MBA26
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(a) prescribing the location and the standards in respect of construction, accommodation, furniture and other equipment of rooms to be provided under this section; (b) requiring the provision in factories to which this section applies of additional facilities for the care of children belonging to women workers, including suitable provision of facilities for washing and changing their clothing; (c) requiring the provision in any factory of free milk or refreshment or both for such children; (d) requiring that facilities shall be given in any factory for the mothers of such children to feed them at the necessary intervals. 49. Welfare officers (1) In every factory wherein five hundred or more workers are ordinarily employed, the occupier shall employ in the factory such number of welfare officers as may be prescribed. (2) The State Government may prescribe the duties, qualifications and conditions of service of officers employed under sub-section (1).
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Module VIII
Career and succession planning
Meaning, significance and process of career planning Career development is important for companies to create and sustain a continuous learning environment. A study conducted by PWC of companies in finance, online services, hospitality, real estate and high-tech industries suggests that companies that are successful at managing the employee growth that accompanies business expansion and increased demand for their products and services focus on recruitment, career development, culture orientation and communications. These companies emphasize that employees are responsible for career management.
IMPORTANCE OF CAREER MANAGEMENT It is the process through which employees, Become aware of their own interests, values, strengths and weakness. Obtain information about their own interests, values, strengths and weakness. Obtain information about job opportunities within the company. Identify career goals. Establish action plans to achieve career goals. It is important for both the employees perspective and the companys perspective. From the companys perspective, the failure to motivate employees to plan their careers can result in a shortage of employees to fill open positions, in lower employee commitment, and inappropriate use of monies allocated for training and development programs. From the employees perspective, lack of career management can result in frustration, feelings of not being valued in company, and being unable to find suitable employment or (should a job change) be necessary due to mergers, acquisitions, restructuring or downsizing.
CAREER Careers refers to the individual sequence of attitudes and behavior associated with work-related experiences and activities over the span of the persons life. Career have been described as advancement. Careers are a sequence of promotions or upward moves in a company during the persons work life. Careers are also professions and this occurs only in occupations in which there is a clear pattern of advancement. Careers can also be considered as a lifelong sequence of jobs. Careers are also lifelong sequence of role related experiences.
Career stages HUMAN RESOURCE MANAGEMENT 12MBA26
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Career development is the process by which employees progress through a series of stages, each characterized by a different set of developmental tasks, activities and relationships. The four career stages are: Exploration, Establishment, Maintenance and Disengagement. And each of these stages is characterized by developmental tasks, activities and relationships. Employee retention, motivation and performance are affected by how well the company addresses the development tasks at each career stage. a) Exploration Stage: In this stage employees identify the type of work that interests them. Here they consider their interests, values and work preferences and they seek information about their jobs, careers and occupation from co-workers, friends and family members. Exploration occurs in the midteens to early-to-late 20s. b) Establishment Stage: In this stage, individuals find their place in the company, make an independent contribution, achieve more responsibility and financial success and establish a desirable lifestyle. Employees in this stage liked to be viewed as contributors to the companys success. Employees who have reached this stage are considered to be colleagues. Colleagues are employees who can work independently and produce results. c) Maintenance Stage: In this stage, the individual is concerned with keeping skills up to date and being perceived by others as someone who is still contributing to the company. Employees under this stage have many years of job experience, much job knowledge and an in-depth understanding of how the company expects business to be conducted. They also can be valuable trainers or mentors. d) Disengagement Stage: Refers to older employees electing to retire and concentrate entirely on nonwork activities such as sports, hobbies, travelling or volunteer work. In this stage individuals prepare for a change in the balance between work and non-work activities. Employees take on the role of a sponsor. Sponsor provides direction to other employees, represents the company to customers, initiates actions and make decisions.
Companies career management systems vary in the level of sophistication and the emphasis they place on the different components of the process. Career management system includes Self- assessment, reality check, goal setting and action planning. a) Self-Assessment: Refers to the use of information by employees to determine their career interests, values, aptitudes and behavioral tendencies. It often involves psychological tests such as Strong- Campbell Interest Inventory and Self-Directed Search. The former helps employees identify their occupational and job interest; the latter identifies employees preferences for working in different types of environments. b) Reality Check: HUMAN RESOURCE MANAGEMENT 12MBA26
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Refers to the information employees receive about how the company evaluates their skills and knowledge and where they fit into the companys plans (potential promotional opportunities, lateral moves). This information is provided by the employees managers as part of the performance appraisal process. Ex: In Coca-Cola USAs career planning system, employees and managers have a separate meeting after the annual performance review to discuss the employees career interests, strengths and possible developmental activities. c) Goal Setting: In goal setting employees develop short and long-term career objectives. These goals relate to desired positions (to become sales manager within three years), level of skill application (using budgeting skills to improve the cash flow system in the unit) or skill acquisition (to learn how to use the companys human resource information system). d) Action Planning: Employees determine the ways to achieve their short-term and long-term career goals. It involves enrolling in training courses and seminars, conducting informal interviews or applying for job openings in the company.
Responsibility for career planning and career anchors Employees, managers, human resource managers, and the company share the responsibility for career planning. a) Employees Role: The employees must approach their manager to initiate career-related discussion as part of the personal development planning process. Regardless of how sophisticated the companys career planning system is, employees should engage in career management actions. Take the initiative to ask for feedback from managers and peers regarding their skill strengths and weakness. Identify their stage of career development and development needs. Seek challenges by gaining exposure to a range of learning opportunities (sales assignments, product design assignments, administrative assignments). Interact with employees from different work groups inside and outside the company (professional associations, task forces). Create visibility through good performance. b) Managers Role: Regardless of the type of Career management system in the company, managers should play a key role in career management process. Because managers are the primary source of information about position openings, training courses and other developmental opportunities. To help employees deal with career issues, managers need to be effective in four roles: Coach, appraiser, advisor and referral agent. Coach-Probe problems, interests, values, listen to the needs, define and clarify concerns. Appraiser-Clarify company standards and job responsibilities and company needs and give timely feedback. HUMAN RESOURCE MANAGEMENT 12MBA26
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Advisor-Generate options, experiences and relationships, assist in goal setting and provide recommendations. Referral Agent-Link to career management resources and follow up on career management plan. c) Human Resource Managers Role: HR managers should provide information or advice about training and development opportunities. Also, HR managers should provide specialized services such as testing to determine employees values, interests and skills, prepare employees for job searches and offer counseling and career-related problems. d) Companys Role: Companies are responsible for providing employees with the resources needed to be successful in career planning. These resources include specific programs as well as processes for career management: Career workshops (seminars on how career management system works, self-assessment, goal setting and helping managers understand and perform their roles in career management. Infromation on career and job opportunities Career planning workbooks (printed guides that direct employees through a series of exercises, discussions and guidelines relating to career planning). Career counseling (advice from a professionally trained counselor who specializes in working with employees seeking assistance with career issues). Career paths (planning job sequences and identifying skills needed for advancement within and across job families, such as moving from technical jobs to management jobs). The company also needs to monitor the career planning system to (ensure that managers and employees are using the system as intended and evaluate whether the system is helping the company meet its objectives,
Meaning, significance and process of succession planning
Succession management system needs to be evaluated to ensure that they are meeting the needs of employees and the business. Several types of outcomes can be used to evaluate career management systems. Firstly, the reactions of the customers (employees and managers) who use career management system can be determined through surveys. Ex: Employees who use planning and counseling can be asked to evaluate the informations timelines, helpfulness and quality. Managers provide information regarding how the system affected the time needed to fill open positions in their department as well as the quality of the job candidates and the employees selected for the positions. Second, more objective information related to the results of the career management system can be tracked, such as actual time to fill open positions, employee use of the system (including contact with career counselors, use of libraries or inquiries on job postings), or number of employees identified as ready for management positions. HUMAN RESOURCE MANAGEMENT 12MBA26
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Evaluation of a career management system should be based on its objectives. If improving employee morale is the systems goal, then attitudes should be measured. If the system objectives are more concrete and measurable (as with a system designed to retain employees with high potential for management), then appropriate data (turnover) rates should be collected.
A wide range of companies special challenges in career management, including emphasizing work-life balance, socializing and orienting new employees, developing dual-career paths, avoiding skill obsolescence, helping employees cope with job loss and preparing employees for retirement. These are the issues considered as career challenges because they tend to be challenges that employees and companies face at one point in time in employees careers (retirement), throughout their careers (work-life balance), or at different points in their careers (socialization and orientation to jobs). These challenges affect a companys ability to attract, retain and motivate talented employees.
Continuity of leadership and its impact on business A) Socialization and Orientation Organizational socialization is the process by which new employees are transformed into effective members of the company. The purpose of orientation is to prepare employees to perform their jobs effectively, learn about the organization and establish work relationships. The three phases of socialization process are anticipatory socialization, encounter and settling in. a) Anticipatory Socialization: It occurs before the individual joins the company. Through anticipatory socialization, employees develop expectations about the company, job, working conditions and interpersonal relationships. Through socialization employees learn the history, company goals, language, politics, people and performance proficiency. b) Encounter: This phase occurs when the employee begins a new job. No matter how realistic the information was that they were provided during interviews and site visits, individuals beginning new jobs will experience shock and surprise. Employees need to become familiar with job tasks, receive appropriate training, and understand company practices and procedures. c) Settling In: In this phase, employees begin to feel comfortable with their job demands and social relationships. They start resolving work conflicts and conflicts between work and non-work activities. Also, employees become interested in the companys evaluation of their performance and in learning about potential career opportunities with the company. Employees need to complete all three phases of the socialization process to fully contribute to the company. Socialization and Orientation Programs It plays an important role in socializing employees. While the content of the orientation programs is important, the process of orientation cannot be ignored. Effective orientation HUMAN RESOURCE MANAGEMENT 12MBA26
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programs include active involvement of the new employee. Social networks can be established through the company orientation programs that provide new employees with opportunities to meet other new employees as well as employees in different parts of the company. The content of the orientation programs includes Company-Level Information, Departmental-Level information and Miscellaneous Information. The characteristics of effective orientation programs are: Employees should be allowed to ask questions. Program should include information both on the technical and social aspects as well. It is the responsibility of the new employees manager. Formal informal interactions occur. Employees should be provide with information on the companys products, services and customers. B) Dual-Career Paths A career path is a sequence of job positions involving similar types of work and skills that employees move through in the company. Individual Contributor Career Path: Scientist-Research Scientist-Principal Research Scientist Management Career Path: Assistant manager-Manager-Department Manager-Assistant director- Director. A dual career-path system enable employees to remain in a technical career path or move into a management career path. Characteristics of effective career paths: Salary, status and incentives for technical employees compare favorably with those of managers. They are given opportunities to increase their total compensation through bonuses. The career path is for employees with outstanding technical skills. Individual contributors are given the opportunity to choose their career paths. C) Plateauing It means that the likelihood of the employee receiving future job assignments with increased responsibility is low. Compares to employees in other career stages, midcareer employees are most likely to plateau. Employees can plateau for several reasons, they are: Discrimination based on age, gender, race. Lack of ability Lack of training Low need for achievement Unfair pay decisions or dissatisfaction with pay raises. Confusion about job responsibilities Slow company growth resulting in reduced development opportunities Plateaued employees should be encouraged to become involved in developmental opportunities, including training courses, job exchanges, and short-term assignments in which they can use their expertise outside their departments. Possible remedies for Plateaued employees: HUMAN RESOURCE MANAGEMENT 12MBA26
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Employees should understand the reasons for plateauing Employees should be encouraged to participate in developmental activities Employees should seek career counselling Employee should do a reality check on his or her solutions. D) Skills Obsolescence Obsolescence is a reduction in an employees competence resulting from a lack of knowledge of new work process, techniques and technologies that have developed since the employee completed his or her education. Avoiding obsolescence has been a concern of employees in technical and professional occupations such as engineering and medicine. And importantly it has to be avoided if companies are trying to become learning organizations. If empoyees become obsolete both the employee and company suffer. Obsolescence can be avoided by: Providing employees with the opportunity to exchange information and ideas. Giving employees challenging work assignments in their careers. Providing job assignments that challenge employees and require them to stretch their skills. Providing rewards for updating behaviors (such as taking courses, suggestions and customer service and product innovation). Allowing employees to attend professional conferences, subscribe to professional journals and magazines or enroll in university or community center courses at low or no cost. E) Coping With Career Breaks Both men and women face major problems in trying to return to work after taking several months or years off for family or other reasons. Peers are often asked to take over the work load of the reservists, which can mean longer work hours, a larger work load, and more time at work on weekends and evenings. These disruptions have a greater impact on smaller companies than larger companies. Inorder to cope with these kinds of issues companies are providing small work contracts that can be done at home. These contracts include proposal writing, idea development and client contact. F) Balancing Work And Life Many companies believe that helping employees balance work and life benefits both the business and employees personal lives. Work-life balance from the employees perspectives means trying to manage work obligations as well as family and life responsibilities. From the companys perspective, work-life balance is the challenge of creating supportive company culture where employees can focus on their jobs while at work. A supportive work-life culture is a company culture that acknowledges and respects family and life responsibilities and obligations and encourages managers and employees to work together to meet personal and work needs. Types of Work-Life Conflict: HUMAN RESOURCE MANAGEMENT 12MBA26
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Time-based conflict occurs when the demands of work and non-work interfere with each other. Ex: Jobs that demand late evening office, overtime work, or out-of-town travel conflict with family activities and team-sport schedules. Strain-based conflict results from the stress of work and non-work roles. Ex: A new born child deprives parents of sleep, as a result it is difficult for them to concentrate at work. Behavior-based conflict occurs when employees behavior in work roles is not appropriate for their behavior in non work roles. Ex: Managers work demands that they be logical, impartial and authoritarian. At the same time, these managers are expected to be warm, emotional and friendly in their relationships with their family members or friends. G) Company Policies to Accommodate Work And Non Work Companies have begun to respond to work and non work issues by developing policies designed to reduce the potential of work-life conflict. These policies emphasize the communication of realistic information about the demands of jobs and careers, flexibility in where and when work is performed, job redesign and support services such as child care and elder care programs. H) Coping with Job Loss Coping with job loss is an important career development issue because of the increased use of downsizing to deal with excess staff resulting from corporate restructuring, M&A and takeovers. Job loss is especially traumatic for old workers. From a career and management standpoint, companies and managers have two major responsibilities. First, they are responsible for helping employees who will lose their jobs. Second, steps must be taken to ensure that the survivors of the layoff remain productive and committed to the organization. To prepare employees for layoffs and reduce the potential negative effects, companies need to provide outplacement services. These services include: Advance warning and explanation for layoff Psychological, financial and career counseling Assessment of skills and interests Job campaign services such as resume-writing and interview training Job banks and job leads information to be provided Electronic delivery of job openings. Guidelines for Termination Meetings with Employees Planning (Alert outplacement that termination will occur). Timing (Shouldnt occur on a Friday afternoon, very late on any day, or before a holiday). Place (It should occur in the employees office). Length (Meeting should be short and to the point). Approach (provide straight forward explanation, stating reasons for termination). Benefits (A written statement of salary continuation, benefits continuation, outplacement support (office arrangements, counseling), and other terms and conditions should be provided and discussed with the employee). I) Dealing with Older Workers HUMAN RESOURCE MANAGEMENT 12MBA26
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a) Preretirement Socialization: Is the process of helping employees prepare for exit from work. It encourages employees to learn about retirement life, plan for adequate financial, housing and health care resources and plan accurate expectations about retirement. Employees who attend preretirement socialization programs have fewer financial and psychological problems and experience greater satisfaction with retirement compared to employees who do not attend these programs. b) Retirement: It involves leaving a job and a work role and making a transition out of their current job and company seeking full-or-part time employment elsewhere. c) Early Retirement Programs: Early retirement offers employees financial benefits to leave the company. These programs are part of the companys strategy to reduce labor costs without having to lay off employees. Financial benefits usually include a lump sum of money and a percentage of salary based on years of service. Eligibility for early retirement is based on age and years of service.
The Effects of High Performance Work Systems and Leader-Member Exchange Quality On Employee Engagement: Evidence From A Brazilian Non-Profit Organization