Q 1 What are the benefits that an organization enjoys by implementing employee participation

Ans Advantages of Employee Participation

You have now learned what employee participation is. Let us now discuss the advantages of employee participation. Employee Participation implies that management of an organisation advocates employee involvement in execution and improvement of various business processes. It is beneficial for the organisation in several ways. Companies like IBM, General Foods, Texas Instruments, Procter & Gamble, Ford, Motorola, Honeywell, 3M, and Hewlett-Packard have employee participation programmes. Employee participation benefits both the employees and the employers. The advantages of employee participation are as follows: Enhanced Employee Performance and Productivity: Employees clearly understand their tasks as there is no ambiguity in their communications with the managers. This helps employees to perform in a better way. Employees are better informed and are able to identify and overcome the hurdles to productivity. Enhanced Organisational Excellence and Efficiency: Employee participation reduces the number of inconsistencies. Knowledge of the tasks enables employees to make intelligent decisions and this increases the overall efficiency. Enhanced Employee Commitment: Employees become more dedicated and work toward achieving the objectives of the organisation. Reduced Absenteeism and Employee Turnover: When employee suggestions are valued and rewarded, the job satisfaction level increases. This helps in retention of employees and reduces absenteeism. Reduced Labour Conflicts: Employee participation builds trust and mutual support. Employees align their goals with that of the organisation, and conflicts within the organisation reduce. Improved Communication within the Organisation: Effective communication is essential for building employee participation. Managers develop their communication skills in order to inform their subordinates of their intentions and perceptions. Employees too communicate better with their superiors through suggestions and joint-meetings. Reduced Resistance to Changes: Employee participation enables them to quickly adapt to organisational changes as there is a clear understanding of employee expectations. Enhanced Morale: Employees desire to be actively involved in their work and make significant contribution to their organisations. Employee participation satisfies many of the psychological needs of the employee and thus increases their morale. Increased Innovation and Creativity: Employee participation enables employees to suggest and implement novel ideas which help in decision making and problem solving. You now know the advantages of employee participation. Let us next discuss how employee participation is enabled in India.

Q 2 Describe the different systems in an organisation that use Employee Relation Management tools.

Ans 2

Employee Relationship Management Tools

Technology can be used to help manage employee relationships. Automated employee relationship management tools help employees to do their tasks in a better way. The following are the different applications existing in organisations which use tools based on different technologies: HR Systems: Human Resource Information System (HRIS) is used to manage all employee information, all leave details and to administer benefits. HRIS handles payroll and other company financial software and accounting systems. These are used by companies for the following reasons: Employees receive timely and correct wages. Employees apply for leave on their own. Training programs for employees can be automated and streamlined. Performance Management Systems: These help to monitor the performance of employees and link it with their salary increments and bonus payments. Managers keep track of training activities and deadlines. Employee activity logs are used for evaluation and planning. There are many software tools which aid performance appraisals like those from HRdirect, Halogen software, Cornerstone Performance and so on. Work Flow Systems (WFM): These help in scheduling, organising and co-ordinating the work of the employees. Teleopti CCC and SAP HR are WFM software that include tools to manage, involve and improve the workforce. Knowledge Management Systems: These help employees identify, create, and share their knowledge. Search and retrieval tools enable easy access of content. According to their role in the organisation, employees view content that is relevant to their work. A single software solution cannot be used for these systems. Knowledge management systems use document management tools, e-learning software, knowledge repositories (databases), collaborative technologies (groupware) and social software (wikis). Project Management Systems: These help in managing and monitoring project activities and in scheduling resources. Project management systems facilitate creation and approval of project estimates. They define resources and tasks. They also create project milestones and enable easy execution of projects. Project reports are generated easily. Gantt charts help in scheduling projects. Critical path analysis (CPA) and Program Evaluation and Review Technique (PERT) charts help in project planning. Log frames can be used for project monitoring. Software tools like Microsoft Project and SourceForge help in project management. Employee Feedback Systems: Surveys enable employees to voice their opinion about routine tasks, management attitudes, current procedures, and ethics. Many software tools are available to help in employee surveys like those from HR-Survey, and Benchpoint. Employee Self-Service Systems: These systems enable employees to update their personal details. Employees file their expenses, billing and time reports. Employees raise purchase requests and keep track of their project related activities. Employees retrieve human resource related

documents, update their tax related information and view their salary details. They can also update their bank information to enable direct salary deposits and reimbursements. Employees can apply for leave and view leave balances. An open forum is provided for employees to present their views. Employees exchange ideas through e-mails and bulletin boards. Employees create and share calendars for better functioning. Tools are provided to employees to perform routine tasks easily and thus focus on other important tasks. Oracles PeopleSoft Enterprise Employee SelfService is an example of an employee self-service tool. These technologies are beneficial only if they address the needs of the employees. Clear guidelines need to be provided to use these technologies. Now that you know about the various ERM applications, let us see the benefits of implementing these tools. The benefits of ERM tools are as follows: It strengthens corporate culture. It enhances communication through the use of e-mails, blogs, bulletin boards, shared folders, and e-calendars. It educates employees about the products, customers and services of the company through enterprise portals. It facilitates project management. It reduces training costs as employees can be provided on-line and needs-based training. It makes HR management work easier. It facilitates work-flow management and increases productivity. It enhances performance management. It manages resources efficiently. It helps retain and provide career growth to talented employees. It enables easy retrieval of information. It obtains feedback from employees and enables organisations to make appropriate corrections. It assures job satisfaction and helps in retaining employees. It ensures compliance with government requirements. Wipro is one of Indias leading software service companies. It has developed some models to deal with the processes of employee management. Wipro offers flexible Employee Performance Management (EPM) solutions which are delivered either in Business Process Outsourcing (BPO) or Software as Service (SaaS) Model. They make employee assessments easier and more accurate. The EPM model offers the following benefits: Goal management

 Performance appraisals Workflow and succession planning Employee development planning Employee training

Q 4 How are trade unions classified?

Ans Types of Trade Unions

In the previous section, you studied about the two different kinds of union functions based on the nature of their activities. You now know that the vital purpose of a trade union is to represent people at work. Trade unions are differentiated based on the type of people they represent. There are four types of trade union as given below: Craft of Skills Union: These unions represent skilled workers like Musicians Union (MU) Industrial Unions: These unions represent members of one particular industry such as Fire Brigades Union (FBU) General Unions: These unions represent workers from all types of industries and with any level or range of skills. For example, Amicus the Manufacturing Science and Finance Union (MSF) White-Collar Unions: These unions represent office workers, such as National Union of Teachers (NUT) Craft of Skills Union Craft union is an arrangement of labour unions that joins workers within the same part of a craft or a skill. Some examples are typographical unions, unions for carpenters, stoneworkers, iron molders, boilermakers, railway engineers and so on. These craft unions have substantial power in the workplace and generally resist others controlling their work processes and standards of training as their members have essential knowledge and physical and theoretical skills. Industrial Unions Industrial unionism is a labour union organising method through which all workers in the same industry are grouped into the same union, regardless of skill or trade. This gives workers in all industries more leverage in bargaining or when workers go on strikes. Advocates[2] of industrial unionism value its contributions in promoting unity. They describe the solidarity of these unions with slogans like, an injury to one is an injury to all and the longer the picket line, the shorter the strike.

An example for an industrial union is a union for oil workers. Members of such an industrial union would include people who are involved in exploration, extraction, refining, transport and all the other areas associated with the oil and gas industry. General Unions A general union is a type of trade union that represents workers from all industries. Unlike craft unions or industrial unions where just a particular sector forms a union, general union, as its name suggests, is for any worker irrespective of organisation or sector. General unions declare that their broader variety of members allows more opportunities for harmony action and better management in general strikes. Detractors claim that the broader dispatch means they tend to be more technical and respond less effectively to events in a single industry. An example of a general union in Australia is the Australian Workers Union. White-Collar Unions White-collar worker refers to a salaried person, who either works as an educated worker who performs semi-professional office, administrative or sales coordination tasks, or works in any service industry like a teacher, a software engineer or a customer care executive. White-collar workers, as opposed to blue-collar workers, perform no manual labour. White-collar union is a type of union that represents white-collar workers.

Q 5 What are the four strategy levels in an organization?

Ans 5 Business strategy is defined as a general set of directions for the corporate to achieve a desirablestate in the future. It is the driving force of the vision, mission and objectives of the company andsets the future course of the company. An organization can employ different strategies,depending upon its environment. On the basis of the place of deployment, strategy of a businesscan be classified into 1) Corporate strategy2) Business level strategy3) Functional strategies4) Operational strategies5) Global strategy 1. Corporate Strategy Corporate strategy of an organization is defined as the overall direction which is pursued by anorganization, which helps the business to achieve its long-term goals. The various business unitsor departments of the organization have to work together so as to achieve the goals for the entireorganization. The determination of corporate strategy has to be decided by a systematic processwhich helps to achieve the pre-determined goals in the near future. The corporate strategy of anorganization addresses the business in its entirety and it is crucial as it provides the guidance forthe strategic decision making at all levels. The corporate strategy of an organization is oftenfound in its mission statement.The corporate strategy of a company is formulated keeping in mind the following a) Future prospects b) Definition of issue

c) SWOT analysis d) Competition e) Selection of strategies f) Managing business relationships g) Management practices The top level management of the organization has to decide on the questions of what, how,where, when and why for the formulation of the corporate strategy. It is important to analyse theabove parameters in detail, before arriving at the corporate strategy, as this helps in setting thepace for the rest of the organization to follow. All other types of strategic decisions have to toethe line of the corporate strategy. By adopting a successful corporate strategy, a company cancreate value for all its stakeholders, namely the employees, management, shareholders, suppliersand consumers. 2. Business unit level Strategy A strategic business unit of any organization is a division or business unit of the organization, onthe basis of a particular product line or profit centre. The strategy of the business unit can bedesigned at the unit level but it needs to be in line with the overall corporate strategy. Thestrategy at the business unit level concentrates on the product line or the service to be providedfor increasing the profits. There is a lesser chance for co-ordination with other units as this typeof strategy solely relates to a particular business unit.At this level, the strategy of the company needs to mainly concentrate on positioning of theproduct, forecasting the trends in demand and technology so that the strategy can be adapted forthe same and also trying to influence the behaviour of competition. The organizations businesslevel strategies help to address the customers by understanding the demographic andpsychographic choices of the customers with respect to the products and services. This helps increating value in the minds of the customers.

According to Porter, there are five forces which affect the level of competition for any industry.He classified these five forces as rivalry, customers, suppliers, entrants and substitutes. He alsosuggested three strategies which help an organization to gain an edge over its competition. Let usnow look at the three strategies suggested by Porter 1) Cost leadership strategy2) Differentiation strategy3) Focused strategy.Apart from the above strategies, some companies follow an integrated strategy which is acombination of two or more of the above strategies. 3. Functional Strategy The functional level of an organization refers to the level of the departments or operatingsections. The strategies for the functional unit relate to the business processes for that function.Functional level strategies may differ from one function to the other depending upon

whether thefunction relates to marketing, finance, HR or operations. These strategies devise the way forwardfor that function by realigning the business processes of the function and increasing the savingsor profits. The functional units also serve to input the necessary details for the business unit levelor corporate level strategies. Once these strategies are decided by the top brass, the functionalunits prepare action plans to implement these strategies at their level.For functional strategies to be more effective, it is important to ensure that the organization has asound functional structure. A good functional structure is based on the elements of clarity,specialisation, co-ordination, skill development and suitability. If the functional structure iscohesive, it contributes to better implementation of the functional strategy. On the other hand, if the employees are unclear about the functions structure, they are likely to be less productive asthey are unsure about their standing in the organization. An organization can classify itsfunctions on the basis of product departments, geographical departments, strategic business units,

Set 2 Q 1 Every organisation faces disciplinary problems from employees. Explain the major types of disciplinary problems faced in organisations.

Ans Procedure for Disciplinary Action

Though there is no specific procedure to be followed. Different organizations use a variety of formal and informal methods to resolve these matters. The following steps are recommended a) An accurate statement of the disciplinary problem. b) Collection of data or facts supporting the report of the offence. c) Review policy and past similar incidents. d) Identify corrective action to implement; take legal counsel to ensure that the local laws of the land are not in conflict e) Apply the action f) Follow-up on the disciplinary action. a. Accurate Statement of the Problem: The first step is to ascertain the problem by seeking answers to the following questions: 1. Does this case call for a disciplinary action? 2. What, exactly, is the nature of the violation or offence? 3. Under what-conditions did it occur? 4. Which individual or individuals were involved in it? 5. When, or how often, did the violation occur? In other words, an executive must first find out that a violation has occurred and that is entirely the fault, or at least partially the fault, of one or more subordinates. The next step is to determine and state the nature of the alleged violation of a rule, a regulation, a policy; to determine whether a request or order has been ignored or broken, and assess the seriousness of the specific offence which has been committed. It is also necessary to know exactly who and what was involved in the violation-whether a particular individual or group. Finally, it is desirable to know when and/or how often the violation occurred. b. Collection of data or facts support the report of the offence: Before any action is taken in a case, it is essential to gather all the facts about it. A thorough examination of the case should be made within the stipulated time limit. The facts gathered should be such as can be produced before a higher authority, if and when needed.

c. Review policy and past similar incidents: The kind of penalty to be imposed for an offence should be determined beforehand. Should it be simple reprimand, a financial or non-financial penalty? Or should it be demotion, temporary lay-off or outright discharge? d. Identify corrective action to implement; take legal counsel to ensure that the local laws of the land are not in conflict: When a decision has been taken to impose a penalty, the punishment to be awarded should be such as would prevent a recurrence of the offence. If the punishment is lighter than it should be, it may encourage the violation of the same rule or another; if it is greater than it should be, it may lead to a grievance. e. Apply the action: The application of the penalty involves a positive and assured attitude on the part of the management. "If the disciplinary action is a simple reprimand, the executive should calmly and quickly dispose of the matter. But when severe action is called for, a fortnight, serious and determined attitude is highly desirable. f. Follow-up on Disciplinary Action: The ultimate purpose of a disciplinary action is to maintain discipline, to ensure productivity, and avoid a repetition of the offence. A disciplinary action should, therefore, be evaluated in terms of its effectiveness after it has been taken. In other words, there should be a more careful supervision of the persons against whom a disciplinary action has been taken.

Q 2 Explain the challenges that international employees encounter. Ans Q 3 What are the different leadership styles that are adopted by managers as per the Managerial Grid Model?

Ans

Managerial Grid

Robert Blake, an eminent behavioural scientist differentiated the leaders on the basis of their concern to people and concern to task. He along with Jane Mouton conducted study on 5000 managers. He puts it on a grid called Managerial Grid as follows:

Figure 15.3: Managerial Grid: Blake and Mouton Source: Debra L Nelson and James C Quick, Organizational Behaviour Pg 397

The Managerial Grid Model (1964) is a behavioural leadership model developed by Robert Blake and Jane Mouton. This model identifies five different leadership styles based on the concern for people and the concern for production. As shown in the figure, the model is represented as a grid with concern for production as the Xaxis and concern for people as the Y-axis; each axis ranges from 1 (Low) to 9 (High). The five resulting leadership styles are as follows: 1. The impoverished style (1, 1). The indifferent Leader (Evade & Elude) In this style, managers have low concern for both people and production. Managers use this style to avoid getting into trouble. The main concern for the manager is not to be held responsible for any mistakes, which results in less innovative decisions. A leader uses a "delegate and disappear" management style. Since they are not committed to either task accomplishment or maintenance; they essentially allow their team to do whatever they consider important and appropriate and prefer to detach themselves from the team process by allowing the team to suffer from a series of power struggles. Features 1. Does only enough to preserve job and job seniority. 2. Gives little and enjoys little. 3. Protects himself by not being noticed by others. Implications 1. Tries to stay in the same post for a long time. Examples of Leader speak: I distance myself from taking active responsibility for results to avoid getting entangled in problems. If forced, I take a passive or supportive position. 2. The country club style (1, 9). The accommodating Leader (Yield & Comply) This style has a high concern for people and a low concern for production. Managers using this style pay more attention to the security and comfort of the employees, in hopes that this would increase performance. The resulting atmosphere is usually friendly, but not necessarily that productive. This person uses predominantly reward power to maintain discipline and to encourage the team to accomplish its goals. Conversely, they are almost incapable of employing the more punitive coercive and legitimate powers. This inability results from fear that using such powers could jeopardize relationships with the other team members. Examples of Leader speak:

I support results that establish and reinforce harmony. I generate enthusiasm by focusing on positive and pleasing aspects of work. 3. The produce or perish style (9, 1). The Controlling Leader (Direct & Dominate) With a high concern for production, and a low concern for people, managers using this style find employee needs unimportant; they provide their employees with money and expect performance back. Managers using this style also pressure their employees through rules and punishments to achieve the company goals. This dictatorial style is based on Theory X of Douglas McGregor, and is commonly applied by companies on the edge of real or perceived failure. This is used in case of crisis management. People who get this rating are very much task-oriented and are hard on their workers (autocratic). There is little or no allowance for co-operation or collaboration. Heavily task-oriented people display these characteristics: they are very strong on schedules; they expect people to do what they are told without question or debate; when something goes wrong they tend to focus on who is to blame rather than concentrate on exactly what is wrong and how to prevent it; they are intolerant of what they see as dissent (it may just be someones creativity), so it is difficult for their subordinates to contribute or develop. Examples of Leader speak: I expect results and take control by clearly stating a course of action. I enforce rules that sustain high results and do not permit deviation. 4. The middle-of-the-road style (5, 5). The Status Quo Leader. (Balance & Compromise) Managers using this style try to balance between company goals and workers needs. By giving some concern to both people and production, managers who use this style hope to achieve acceptable performance. Examples of Leader speak: I endorse results that are popular but caution against taking unnecessary risk. I test my opinions with others involved to assure ongoing acceptability. 5. The team style (9, 9). The Sound / Team Leader (Contribute & Commit) In this style, high concern is paid both to people and production. As suggested by the propositions of Theory Y, managers choosing to use this style encourage teamwork and commitment among employees. This method relies heavily on making employees feel as a constructive part of the company. This type of person leads by positive example and endeavours to foster a team environment in which all team members can reach their highest potential, both as team members and as people. They encourage the team to reach team goals as effectively as possible, while also working tirelessly to strengthen the bonds among the various members. They normally form and lead some of the most productive teams.

Examples of Leader speak: I initiate team action in a way that invites involvement and commitment. I explore all facts and alternative views to reach a shared understanding of the best solution. Grid Relationship Skills The Grid theory translates into practical use through Grid style relationship skills that people experience day in and day out when they work together. These relationship skills depict the typical and vital behaviours for each style that make relationships effective or ineffective. Some behaviour strengthens and motivates teams while others obstruct progress. Critique Learning from experience by anticipating and examining how behaviour and actions affect results. Initiative Taking action to exercise shared effort, drive, and support for specific activities. Inquiry Questioning, seeking information, and testing for understanding. Advocacy Expressing attitudes, opinions, ideas, and convictions. Decision-making Evaluating resources, criteria, and consequences to reach a decision. Conflict Resolution Confronting and working through disagreements with others toward resolution. Resilience Reacting to problems, setbacks, and failure, and understanding how these factors influence the ability to move forward. Grid theory makes behaviours as tangible and objective as any other corporate commodity. By studying each of the seven Leadership Grid styles and the resulting relationship skill behaviours, teams can examine, in objective terms, how behaviours help or hurt them. They can explore types of critique that work best for them and why. They can openly discuss how to improve decisionmaking and conflict resolution skills. These and other subjects usually considered "off limits" in terms of productivity are the very subjects that usually impede productivity. The Grid approach makes these subjects not only "discussable" but measurable in objective terms that generate empathy, motivation to improve, and creativity. The most desirable place for a leader to be along the two axes at most times would be a 9 on task and a 9 on people the Team Leader. However, do not entirely dismiss the other three. Certain situations might call for one of the other three to be used at times. For example, by playing the Impoverished Leader, you allow your team to gain self-reliance. Be an Authoritarian Leader to instil a sense of discipline in an unmotivated worker. By carefully studying the situation and the forces affecting it, you will know at what points along the axis you need to be in order to achieve the desired result. Activity 2 Leadership Exercise:

How to check what type of leader you are? Do the following exercise? This is a quick self-quiz to give you some feedback on your predominant leadership style. Instructions: Read each item carefully. Rate yourself on how frequently you engage in this behaviour. Scale: 4 = Always 3 = Often 2 = Occasionally 1 = Seldom 0 = Never 1. Finds time to listen to group members. 2. Makes sure group members are working up to their fullest capacity. 43210 3. Directs the activities of group members on particular tasks. 43210 4. Looks out for group members personal welfare. 43210 5. Shows willingness to make changes in leadership approach (es). 43210 6. Emphasizes the meeting of deadlines. 43210 7. Solicits group input in important decisions. 43210 8. Emphasizes the maintenance of definite standards or performance. 43210 9. Supports group members in their actions. 43210 10. Makes personal position clear. 43210 Scoring:

 Add items 1, 4, 5, 7, 9 Total Relationship Score ___________ Add items 2, 3, 6, 8, 10 Total Task Score _____________ Plot the intersection of your total relationship and total task scores on the grid below.

Relationship Dimension is the vertical rating Task Dimension is the horizontal rating

Q 4 What are the components of a Human Resource Information System

Ans Components of Human Resource Information Systems

An HRIS is an integrated approach to acquiring, storing, analysing and controlling the flow of information throughout an organisation.[2] A well-developed HRIS is useful in many HR applications and can enhance the efficiency and time-of-response of many HR activities. Some of the common applications of HRIS are as follows: Planning: The HR activities implemented by this application are personnel and succession planning, labour relation planning, target analysis and organisational charting. Staffing and Employment: This application handles recruitment activities. It ensures compliance with employment equity. Training and Career Development: This application deals with analysing training needs, training administration, and career planning. Performance Management: This application deals with performance appraisals, and monitoring time and attendance of employees. Compensation and Benefits: This application deals with employee compensation and benefits administration. Let us now discuss each of these common applications in details. 5.5.1 Planning Planning is a very important activity of HR management. Planning identifies and implements the activities that ensure that the organisation is moving in the right direction. Planning is concerned with implementing the business strategy of the organisation. The components of planning are as follows: Environmental Scanning: It identifies the business opportunities and threats after reviewing the external factors that affect an organisation. Business Plan Analysis: It reviews the business plans and strategies. Manpower Planning: It reconciles any imbalance between HR supply and demand. Program and Policy Review: It ensures that the HR policies and programmes are aligned with the organisational needs. The components of HRIS which assists in planning are: Work Force Profile Review: It assesses the demand and supply of workforce by analysis of employee data elements like age, wage, performance rating, position and organisational data elements like employee turnover.

 Work Force Dynamic Analysis: It examines the employee movement in the organisation by analysing historical data like service, promotions, performance ratings, and salary. Various reports which provide information on lateral transfers, promotions, new recruits and turnover are generated. Succession Planning: It identifies potential successors for critical positions. Employees are scored and assessed for suitability of pre-defined job profiles. The staff details (job history, competencies, assessments) is analysed to find which position the individual can fit into. Employee databases are searched to retrieve profiles of employees who fit certain criteria. Reports are generated of individual competencies. Figure 5.2 depicts the employee details window of the Succession Wizard of Peoplesoft.[3]

Figure 5.2: Screenshot of PeopleSoft Succession Planning Wizard Strategic HR Planning: It analyses HR data and compares it with performance benchmarks. It is used to evaluate policy compliance and impact of new programmes. 5.5.2 Staffing and Employment Staffing refers to the process of attracting candidates, interviewing them, and negotiating a compensation package with them. The process of staffing is very important as organisations have to recruit the right candidates who will help in realising the organisational goals. The components of HRIS which assists in staffing and employment are: Applicant Tracking: This helps in identifying competent candidates quickly and effectively. It organises information about applicants and their availability and helps in automating the recruitment process. Resumes are imported from job portals. Candidates are short-listed by prescreening their profiles. It helps to match applicant capabilities with job openings. It compares candidates applying for the same job and helps in scheduling and tracking interviews. The tracking component also generates employment letters. For example, Bell Helicopter Company uses its HRIS to recruit technical staff. MCI Telecommunications uses a resume tracking system called SmartSearchTM to spot eligible candidates. Employment Equity Compliance: Employment Equity is a process which helps organisations to identify and eliminate barriers in their employment policies and procedures in order to have representation of women, people with disabilities, and minorities at all levels. Employee personal data (gender, sex, and group) and reports of employees hired and employees promoted are used to make decisions to ensure fair employment practices. 5.5.3 Training and Career Development

Employee training and career development is very essential for motivating employees. HRIS is a very important training and career management tool. Training: Organisations need to measure costs of training and their effectiveness. HRIS helps in scheduling and monitoring training programmes. Employees use the self-service module to apply for training. Employee data like skills, goals and performance rating are used to evaluate training needs of an employee. Based on this analysis, the HR personnel or managers grant training approval. Training budgets are fixed using HRIS tools. Career Development: HRIS can be used to monitor employee career trajectories. Many organisations seek to fill vacancies from within the organisation. HRIS informs employees about the current vacancies and the requirements of those positions. HR personnel are also able to identify employees who fit the requirements for vacant job positions by using employee data. For example, the company 3M has implemented a job information system which lists the jobs available companywide. All employees can view this listing and apply for the desired position. 5.5.4 Performance Management Employee performance management is essential to ensure that employee performance is monitored. This makes the organisations more productive and profitable. Performance Appraisals: Performance appraisal results are used to make administrative decisions like promotions, salary increments and so on. Feedback of performance appraisals improves employee performance. Performance management of HRIS uses data like position, supervisor, date of appraisal, performance rating, appraiser comments, history of performance, and date of next appraisal. Performance appraisals help in identifying the strengths and weaknesses of employees and their training needs. Time and Attendance: Information on attendance and time worked is very important as absenteeism results in considerable loss to the organisation. Time and attendance module analyses information like time spent on a job, start date, end date, total time taken and reason, and leave details. Overtime calculations are also performed. Some HRIS also manage attendance details of multiple shifts. Time sheets are created for different categories of employees. Time sheets can also be configured for each project. Off-time information is also captured. Time sheets can be approved. After approval, time worked and leave details are exported to payroll module. Department-wise reports of absenteeism with reasons are generated. 5.5.5 Compensation and Benefits Attractive compensation packages and good benefits programme help motivate employees and retain skilled employees. The University of Michigan uses HRIS to manage pay, benefits and pensions of its current and retired faculty members. Compensation Management: All organisations have to offer a competitive compensation package, maintain payroll costs and comply with government laws. Employee compensation is determined by examining jobs and determining their relative worth to the organisation. Compensation Management function of HRIS uses data like salary basis (hourly, commission and so on), bonusses, hours worked, types of increment (annual, biannual, promotion) and interfaces with the payroll system. It interfaces with the performance management system to ensure correct pay based on performance ratings.

 Benefits Administration: Employees use the HRIS to enroll in various benefit programmes. For example, the employees of Apple Computers enroll in benefit plans using the HRIS of the company. Employees can also change their enrollment plans. HRIS determines benefits by using employee data like date of enrollment, type of insurance plan opted (Health, Life), memberships availed (health clubs), loans and beneficiary details. HRIS automates the computation of flexible benefits. Employees are also educated about the various benefit plans they are eligible for through HRIS.

Q 5 What are the provisions of the Factories Act 1948 that ensure social security measures of workmen in a factory?

Ans

Factories Act 1948 The Factories Act regulates labour employed in factories. It applies to the whole of India. This act applies to all factories which use power and employ 10 or more workers, and applies to factories not using power and employing 20 or more workers, on any day of the preceding 12 months. According to this act, every factory has to be registered and needs to obtain a licence for working which has to be renewed at periodical intervals. The plans, designs and specifications of any proposed construction or extensions to the factory have to receive the prior approval of the state government. The main provisions of this act are as follows: Facilities: It specifies the minimum requirements regarding health (cleanliness, ventilation and temperature, lighting and control of glare, etc.) safety (protection of eyes, handling of explosive and inflammable materials, etc.), and general welfare of workers (first-aid, canteens, shelter rooms, crches, urinals, drinking water etc.). Safety: Fencing of machinery needs to be done. Adequate fire-fighting facilities must be provided. Hoist and lifts have to be in good working condition. Stairs and passages have to be free from obstruction. Safety appliances to protect the eyes from dangerous dusts, gases, and fumes have to be provided. Pressure plants have to be regularly checked. Working Hours: The working hours cannot be greater than 48 hours in a week. Weekly holiday is mandatory. Compensatory holidays have to be given if the worker works on weekly holidays. A worker cannot be made to work for more than nine hours in a day. Half an hour rest is to be provided after five hours of work. Overlapping of shifts is not allowed. Overtime Wages: A worker has to be paid overtime wages at double the rate of regular wages if the worker works beyond 9 hours a day or 48 hours a week. Leave: A worker is permitted a leave of one day for every 20 days of work performed in the previous calendar year provided that the worker had worked for 240 days or more in the previous calendar year.

 Child Employment: Children below age of 14 cannot be employed. Children between 14 and 15 years of age can be employed only for 4.5 hours per day or during the night. Adolescents cannot work between 7 pm and 6 am. Obligation regarding Hazardous Processes and Substances: Provide Information about hazardous substances and processes and the dangers and health hazards involved. Ensure safety measures and make emergency plans. Appoint safety committees. Now that you know the provisions of the Factory Act, let us next discuss the Employment Exchange Act of1959

Q 6 magine yourself as the HR Manager of a steel company and you find that for members of the production team in your organisation are in conflict and this has affected the productivity of the team. What steps will you take to resolve the conflict and improve the team productivity? Ans

Focussing on Team Performance A team consists of two or more individuals. These individuals have specific role assignments. They must perform specific tasks and must interact or coordinate to achieve a common goal or outcome. In addition, teams make decisions, have specialised knowledge and skills and often work under conditions of high workload. Teams can be distinguished from small works groups on the basis of the fact that teams have unique requirements for coordination and task interdependency. Teamwork normally involves team members adjusting to each other either sequentially or simultaneously in order to achieve team goals. 3.2.1 The need for shift In the past, the focus was on performance management of individuals. But, today, organisations have realised that results are achieved by team efforts although individuals are also important. Individual focused performance systems will only propagate divisiveness and may even hamper teamwork. The changed global scenario has brought in a new era which is called the competence era. This competence era further perpetuates individual performance management rather than team performance management. This is mainly because of the pressure to differentiate. The various sources of pressure are: Differentiated pay packets. Need for competent managers. Willingness of some organisations to pay any amount for competent individuals. Enhanced salary structure forcing every organisation to compute return on investment on each employee or value addition of each employee.

With all these influences, it is understandable that the corporate sector continues to focus on individual performance.The following realities indicate the need for refocusing performance management on group or team performance in addition to individual performance: Strategic thinking, employee motivation, leadership, development and team management competencies are critical at higher organisational levels and make a lot of difference. The performance management indicators are most often team performance based rather than individual performance. The team performance or output is an indicator of the individual leaders competence and there could be several cases where the team performs in spite of the leader and not necessarily due to the leader. In such cases, the team should be given adequate importance and team performance should not be merely attributable to the leader. It becomes very difficult to quantify and measure the performance of individual senior managers. Since performance indicators are qualitative and cannot be reduced to numbers, the measuring instruments fail to measure performance of managers. Managers often blame the team for poor performance. They say that they have done their best as individuals, but the team has not performed at its best. Some of them say that they have done their best but there are many factors beyond their control. Organisations have to develop team chemistry and leadership has to help make it work. Team chemistry could be managed better if team performance is focused. By focusing on team performance, the organisation is creating some enablers for the team leader to be effective. Combined performance and overall outcomes are likely to be better if the focus is on the team, rather than on the individual. Measuring team performance is easier and is more objective than measuring the individual performance at higher levels. Focusing on team performance allows tackling many dimensions simultaneously, as compared to individual performance. Team performance is always closer to the organisational performance rather than individual performance. Top level performance can be measured mainly in terms of team performance. The above considerations make it necessary to recognise the importance of team performance management besides managing individual performance.