Swati Robert 3rd Sememster Roll No.

521021718

Master of Business Administration-MBA Semester 3 Subject Code MU0012 Subject Name Employee Relations Management Assignment Set- 1 (60 Marks)
Q.1 List the core issues of employee relations management? Ans: Employee Relations Management (ERM): Employee Relations Management (ERM) is a vital business process that manages employeremployee and employee-employee relations. It goes by the maxim that a satisfied employee is a productive employee. Organisations following good employee relations realise that employees are important stakeholders in the organisation. Employees who are content with their employers contribute more effectively towards the goals of the organisation. ERM is influenced by organisational strategies, culture and other factors like employee commitment and employee engagement. Managing organisational conflicts is also an important part of ERM. ERM is facilitated by tools like Human Resource Information Systems (HRIS). Many laws govern employee relations, and an effective ERM considers the laws of the land. The objectives of Employee Relations Management are as follows: Improve the effectiveness of the workforce. Ensure employee satisfaction. Gain and retain employee commitment. Prevent conflicts amongst employees Promote retention of employees. Improve employee-management and employee-employee communication. Some of the core issues of ERM. Core issues of Employee Relations Management: 1. Conflict Management: Conflict management refers to the manner in which mangers handle grievances and disputes. According to Gennard and Judge, Employee Relations aims to resolve difference between the various interest groups regardless of whether these groups comprise different categories of managers or employees.[1] Workplace conflicts arise due to differences in perceptions, culture, employee biases, gaps in communication, and so on. A win-win approach is used to resolve conflicts. Mediation and counselling are adopted for resolving conflicts rather than using formal discipline measures. Managers are trained both to avoid and to resolve disputes. External mediators can also be called in if necessary. Large organisations like public sector companies prefer to use internal

Swati Robert 3rd Sememster Roll No. 521021718 mediators to resolve conflicts. Unresolved work place conflicts can have a negative impact on the organisation. For example, if the production manager and the quality control manager have differences about implementation of quality procedures, then the work of both the divisions is affected. Figure 1.1 depicts some causes of workplace conflicts.

Figure: Causes of Workplace Conflicts Conflict management skills help employees get along with the other employees, their managers and the customers. These skills help managers identify conflicts, respond to them, get better co-operation from the employees, and avoid conflicts from spreading to other parts of the organisation. The following skill set help managers deal with conflicts: Conceptual skills: Managers need to first understand the causes of conflicts and the different strategies and tactics they can use to resolve the conflict. Communication skills: Managers require good listening skills and the ability to ask the right questions to ascertain the cause of the conflict. They must avoid harmful statements and remain rational. Negotiation skills: Managers need to know the policy of give and take required to resolve conflicts.

Swati Robert 3rd Sememster Roll No. 521021718 Conflicts are resolved by adopting the following strategies: Counselling: Only a few organisations have professional counsellors on their staff. Many organisations train their managers to counsel their subordinates. Often, just by employing nondirective counselling (listening and understanding), managers can help frustrated employees. Discussions and Debates: Task conflicts are resolved by discussing or debating the options. Consensual decision is made after considering every option. Compromise: This method tries to resolve conflicts by arriving at a solution which satisfies at least part of the requirement of each party involved. Using third parties: As serious conflicts have a negative impact on organisations, third parties with specialised skills are used as arbitrators, mediators or ombudsmen to resolve them. 2. Internal Communication: Employee engagement can only be obtained if the senior management communicate frequently on a wide range of business and organisational issues. Organisations with good employee relations give a high priority to internal communication. Such organisations ensure that the employees completely understand the communications made to them. For example, The South-West Trains Company has a very good relationship with its unions. But when the management realised that not all employees were being kept informed about the different issues, they decided to use more direct means of communication. At present, ad-hoc forums are held to get feedback from employees. Time with the manager sessions keep the line managers in touch with the operations staff. The intranet and e-mail are used in addition to team briefings to communicate with all the employees. 3. Employee Engagement: Mike Johnson describes employee engagement as a combination of commitment and organisational citizenship[2]. Organisations can be successful only if the employees have a feeling of job security, respect, recognition, and purpose. Organisations that have good employee relations value teamwork and employee feedback. Engaged employees are more committed, helpful, productive and less inclined to take leave. Figure 1.2 depicts the indicators of employee engagement.

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Figure: Employee Engagement Indicators People management and development activities like training and job design contribute to employee engagement. A positive psychological contract with the employees enhances performance. HR professionals are employee champions and focus on the needs and aspirations of the employees. Employee involvement can be achieved by the following practices: Having formally designated teams Having regular team briefings Undertaking performance appraisals Using problem-solving groups Involving employees in decision making Dell is a computer manufacturing company and has been ranked among the top ten companies by Fortune magazine. It aspires to be a great company and a great place to work. It focuses on the team and individual contributions to the team. Line managers interact with individual team members. All employees are judged on the basis of how they interact with people and their technical proficiency. Quarterly results meetings are held across the business and senior managers answer questions posed to them. Managers share results with the team and develop team action plans. Tell Dell surveys are held every six months. These surveys help in finding if the managers give regular feedbacks, manage people properly, set a good example of ethical behaviour and so on. Thus Dell engages its employees by constant employee involvement. 4. Career Management: Career development of employees is organisationally supported, manager facilitated, and employee driven. The career management process is based on the establishment of specific goals and objectives. The career management process commences with the formulation of specific goals and objectives. The goals can be of the following kinds:

Swati Robert 3rd Sememster Roll No. 521021718 Short-term goals: These are goals to be achieved within the next 1 to 2 years. These are more specific and easy to formulate. Intermediate goals: These are goals to be achieved in the next 3 to 5 years. These are more difficult to formulate as compared to short-term goals. Long-term goals: These are goals to be achieved after 5 years. They are more fluid and very difficult to formulate.

Figure: Employee Career Development As the nature of the work changes employees may have to modify and update their goals. Figure 1.3 shows the employee career development cycle where managers guide, motivate and provide opportunities to employees in every step towards developing career. Organisations exercising good employee relations have an environment in which employees take control of their own development and maintain their employability. Such organisations ensure that employees are given fair career advancement opportunities. Discriminations are not made on the basis of race, gender or ethnic group. The framework of such organisations enhances employee potential. 5. Commitment: Employee commitment can be defined as the psychological bond of the employee with the organisation and the degree to which the employee identifies with the organisational goals. Employee commitment is an important factor that determines the success of an organisation. Employee commitment is influenced by the following factors: Organisational Values: Organisational values influence employee behaviour. If the organisation values employee participation, the employee feels more committed to contribute to the success of the organisation.

Swati Robert 3rd Sememster Roll No. 521021718 Relationship with Supervisor: If the employee has a good relation with the supervisor, it improves commitment. A supervisor has to share information, provide timely feedback and reward good performance. Job Nature: When the job satisfies the employee, commitment increases. Employees given routine or repetitive tasks with no challenges to stimulate them have their levels of commitment decreases. Entrusting employees with responsibility and giving them more autonomy increases commitment. Organisational Justice: When employees work in a fair and just environment, their commitment increases. Promotions and wage increments need to be awarded in a fair and transparent manner. Employee grievances also need to be addressed and conflicts resolved immediately. Increasing commitment is a business necessity. The benefits of gaining employee commitment are as follows: Organisational performance is improved. Employee motivation increases and this increases productivity. Profits increase as sales increases Employee retention is increased. Cost savings is enabled. Training costs of new employees gets reduced. Conflicts in the organisation reduce. 6. Talent Management and Retention: Successful organisations have an effective employee retention strategy in order to maintain their growth and leadership. Organisations which do not give priority to retaining employees lose them to their competition. It is much easier to retain satisfied employees than recruit newcomers. Training newcomers to become productive is very costly and requires more effort and resources. Talent can be retained only by enhancing employee motivation and job satisfaction. Figure 1.4 shows a diagrammatic representation of the factors affecting employee retention.

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Figure: Factors Affecting Employee Retention The following are some of the strategies that organisations adopt to retain their employees: Employee Motivation with Learning: Employers encourage learning in the organisation. They sponsor employees when they undertake any enhancement courses after agreeing with the employees that they would continue to work for the organisation for a specific time period. These employees can return to the workforce with better qualifications and hence perform better. Use Money as a Motivational Tool: Money is a complex factor and its influence on employee retention cannot be defined easily. But it is a fact that money represents purchasing power and employees who earn more are more satisfied than other employees. Brand Building: This is a long-term approach and aims at attracting the best of talents. It requires consistency in operations and good organisation culture to enhance the image of the organisation. 7. Training: Many organisations have a policy of personal development of employees. Training programs are undertaken by organisations when the results of a performance appraisal indicate that training is essential. Training programs are also undertaken to enable employees to undertake new roles which require more skills. The training programs undertaken by an organisation deal with the following: Communications: People with different languages and customs are employed and they need to be trained in interpersonal communication. Computer skills: These skills have become very essential even for routine administrative tasks.

Swati Robert 3rd Sememster Roll No. 521021718 Quality initiatives: Implementation of programs like Total Quality Management, Quality circles, benchmarking require training of employees in quality procedures, concepts and standards. Customer service: Employees need to understand and meet the needs of the customers to stay competitive. Human relations: Employees are trained to avoid misunderstanding and conflicts and build interpersonal relations. Safety: Employees are trained in safety measures especially if they handle heavy equipment, work in hazardous conditions or deal with hazardous chemicals. Ethics: Organisations today are more socially responsible. Hence employees are made familiar with the corporate values and morals. Sexual harassment: Employees are made aware of what constitutes sexual harassment in order to avoid such behaviour. Training and development activities contribute to the personal development of the employee and enhance employee engagement. The benefits of having training programs in an organisation are as follows: They enhance job satisfaction and improve employee morale. They make processes more efficient thus increase productivity and profits. They increase employee motivation. They improve the corporate image of the company. The organisation becomes more capable of adapting to new ideas and technology. The organisation has more innovative strategies and ideas. They increase employee retention and reduce turnover. You can now understand the importance of having training programs in organisations. Training programs show the employee that the organisation is truly interested in the personal development and skill enhancement of the employee. The employee in turn becomes committed to the organisation and helps the organisation to achieve its goals. 8. Benefits Administration: Employees are the most important asset of an organisation. Organisations that practice good employee relations management have many benefits programs in order to attract and retain employees. The problems in implementing an efficient benefits program arise due to the following reasons: The employer is unable to collect key information and verify them. The employee is unable to access information about the different benefits program. This increases job dissatisfaction and turnover. The benefits administration process has to be streamlined and automated. The features of an effective benefits administration process are as follows: It is easier to create and manage multiple benefits programs. It creates employee benefit plan profiles.

Swati Robert 3rd Sememster Roll No. 521021718 It creates eligibility criteria. It maintains beneficiaries and dependents information. It facilitates performance reviews, tracks past review details, and schedules future reviews. It interfaces directly with insurance providers and payroll systems. It merges and audits monthly insurance or benefits. It complies with government requirements. There is an annual review of the benefits program. You now know the advantages of implementing a good benefits program in an organisation. Automated benefit systems help both the employers and the employees. Good benefit programs enhance employee retention. 9. Employee Self-Service: Employees feel empowered when organisations have employee self-service modules to manage personal data. The accuracy of employee information is improved with the introduction of such modules. The administrative workload of the HR staff is also significantly reduced. The following list enumerates the features of an employee selfservice module: It facilitates creating and updating personal details like name, address, telephone numbers, etc. It maintains passwords for security of information. It maintains information about emergency contacts, beneficiaries, and dependents. It facilitates enrollment in benefits programs. It allows updating of tax related information like exemptions and savings details. It allows viewing of salary details like gross pay, deductions made, and net pay. It maintains bank related information for direct deposits of salary and reimbursements. It allows employees to apply for leave and check for leave balance. Employers can review the leave details of the employees. It allows employees to submit details about expenses. It allows internal and external job applications. It also permits checking of job application status. It facilitates viewing of training program details and enrolment. It maintains health and safety records. The employee self-service module enables employees to manage their personal data. The accuracy of the data improves and the work of the Human Resource staff is also made easier. Q.2 What is organisation culture? What are the elements of organisation culture? Ans: Organisation Culture: Organisational culture is an idea in the field of organizational studies and management which describes the psychology, attitudes, experiences, beliefs and values of an

Swati Robert 3rd Sememster Roll No. 521021718 organisation. It is defined as the specific collection of values and norms that are shared by people and groups in an organisation and that control the way they interact with each other and with stakeholders outside the organisation. This definition continues to explain organizational values, described as "beliefs and ideas about what kinds of goals members of an organization should pursue and ideas about the appropriate kinds or standards of behavior organizational members should use to achieve these goals. From organizational values develop organizational norms, guidelines, or expectations that prescribe appropriate kinds of behavior by employees in particular situations and control the behavior of organizational members towards one another. An organisation is said to have a strong culture if its employees are aligned with the organisational values. Organisations that have a strong culture function efficiently. On the other hand, in organisations that have a weak culture, the employees are not aligned with the organisational values. Control has to be exercised through extensive procedures and rules. In organisations with a strong culture, Groupthink can develop. Groupthink is a state wherein people do not challenge organisational thinking even if they have different ideas. Innovative thinking gets discouraged in such situations. Innovative organisations need people who are willing to change the status quo, and to implement new ideas and procedures. Elements of Organisational Culture: Now that we have defined organisational culture, let us look into the elements that define organisational culture. They are as follows: The Paradigm: It defines the mission and values of the organisation. It outlines the functions of the organisation. Control systems: It defines the processes and the rules which monitor the organisational activities. Organisational structures: It outlines the reporting lines, hierarchies and the direction of work-flows. Power structures: It specifies the decision makers and their power reach. Symbols: It includes organisational logos, designs and symbols of power like allocation of parking space. Rituals and routines: It outlines procedures like meetings and reporting. Stories and Myths: It conveys the organisational values.

Swati Robert 3rd Sememster Roll No. 521021718 These elements may overlap. Power structures may depend on control systems, which may exploit the very rituals that generate stories which may not be true. According to Schein (1992), the two main reasons why cultures develop in organizations is due to external adaptation and internal integration. External adaptation reflects an evolutionary approach to organizational culture and suggests that cultures develop and persist because they help an organization to survive and flourish. If the culture is valuable, then it holds the potential for generating sustained competitive advantages. Additionally, internal integration is an important function since social structures are required for organizations to exist. Organizational practices are learned through socialization at the workplace. Work environments reinforce culture on a daily basis by encouraging employees to exercise cultural values. Organizational culture is shaped by multiple factors, including the following: External environment Industry Size and nature of the organizations workforce Technologies the organization uses The organizations history and ownership Organizational values, role models, symbols and rituals shape organizational culture. Organizations often outline their values in their mission statements, although this does not guarantee that organizational culture will reflect them. The individuals that organizations recognize as role models set, by example, the behavior valued by the organization. In addition, tangible factors such as work environment act as symbols, creating a sense of corporate identity. The founding of an organization is a critical period in the life of the organization and the development of its culture. An organizations founder or chief executive has an influential impact on the development of the organizations culture since that person is likely to have control in hiring people with the same values and influence the choice of strategy. By screening candidates for a cultural fit, organizations select those employees that will be able to uphold the organizational culture. Additionally, leaders embed culture in organizations by what they pay attention to, measure, and control; how they react to critical incidents and crises; the behaviors they model for others; and how they allocate rewards and other scarce resources. Additionally, the legacy of an organizational founder may be reflected in the culture long after that person leaves through the processes of cultural transmission (e.g. rites, stories) where the culture perpetuates itself. The values of founders and key leaders shape organizational cultures, but the way these cultures affect individuals is through shared practices. Q.3 Explain the trait theory of leadership.

Swati Robert 3rd Sememster Roll No. 521021718 Ans: Leadership: Leadership is defined as the process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task. Leadership is a very important behavioural aspect that affects organisations and employee relations. The nature and style of leadership plays an important role in employee relations, motivation, conflict resolution, and creation of overall organisational vision and direction. In formal organisations, advancements are based on merit and seniority. The power held by an individual corresponds to the position the individual occupies in the hierarchy. But in informal organisations, leaders emerge from within the organisational structure. The leader is able to attract followers due to a combination of circumstances and the qualities the leader possesses. Leadership Theories: The Trait Theory: This theory uses traits (characteristics) to distinguish between leaders and non-leaders. The traits associated with leadership according to this theory are shown in figure 4.1. The traits that indicate strong leadership are as follows: Intelligence: This refers to the mental ability of a person and is only a moderate predictor of leadership. The Intelligence Quotient (IQ) of a person can be used as a qualifier for high management jobs, but once the high position is attained, an effective leader also displays good levels of Emotional Quotient (EQ). EQ helps a leader to empathise with the motivation and emotions of others. Many people feel that Carly Fiorina, the ousted leader of Hewlett-Packard, had a high IQ but a low empathy for the people around her and ignored the human aspects of her decisions. Extraversion: Extraverts have higher social and interpersonal skills. They are more energetic, assertive and self-confident. As extraverts are more dominant, they emerge as natural leaders. For example, Steve Ballmer, the CEO of Microsoft, is an extraverted leader. Figure depicts traits associated with leadership.

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Conscientiousness: Conscientious people are organised, dependable, systematic, punctual, and achievement oriented. They take initiative and are persistent in all they do. Openness: People who are open to new ideas and try new things become effective leaders. Self-Esteem: People with good self-esteem assess their worth and capabilities in a more positive manner. Leaders with high self-esteem are more supportive to their subordinates. People with higher self-esteem are more self-confident and have greater charisma. Integrity: Effective leaders display honesty and integrity. Such leaders are more trustworthy. Behavioural Theory: Behavioural theory of leadership does not deal with the traits or capabilities of a leader. They focus more on what the leaders actually do. According to this theory, leadership capabilities are not inherent and can be learned. It correlates the successes of leaders with their actions. Managerial Grid Model: This is a behavioural leadership model proposed by Robert Blake and Jane Mouton. This model identifies the different leadership styles based on the concern for people and the concern for production.

Figure shows the graphical representation of the managerial grid model.

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In this model, the concern for production is represented on the X-axis and the concern for people on the Y-axis. Each axis is marked from 1 (low) to 9 (high). The different leadership styles that are identified are as follows: The Indifferent or Impoverished Style (1, 1): Managers adopting this style have low concerns for both people and production. Managers are more concerned about preserving their jobs and avoiding getting into trouble. The managers do not want to be held responsible for any mistakes and are therefore, less innovative. The Accommodating or Country Club Style (1, 9): Managers using this style are more concerned about the people than the production. Managers try to ensure security and comfort of the employees hoping that it will enhance performance. The workplace atmosphere is pleasant but not necessarily productive. The Dictatorial Style (9, 1): Managers using this style are more concerned about production than the people. Managers do not consider the needs of their subordinates. Managers pressurise their employees to achieve company goals by imposing rules and threatening them with punishment. The Status-Quo or Middle of the Road Style (5, 5): Managers adopting this style try to balance employee needs and company goals. But in trying to compromise, the managers do not meet the needs of the company or that of the employee. The Sound or Team Style (9, 9): Managers using this style are concerned about the people and the production. Managers encourage teamwork and employee commitment. Managers make employees feel that they are contributing constructively to the company.

Swati Robert 3rd Sememster Roll No. 521021718 The Opportunistic Style: Managers using this style exploit and manipulate their subordinates. This style does not have a fixed location on the grid. Managers adopt the behaviour which offers them the greatest personal benefit. The Paternalistic Style: Managers using this style praise and support their subordinates but discourage their being innovative. This style alternates between the (1, 9) and (9, 1) locations on the grid. Strengths/Advantages of Trait Theory: It is naturally pleasing theory. It is valid as lot of research has validated the foundation and basis of the theory. It serves as a yardstick against which the leadership traits of an individual can be assessed. It gives a detailed knowledge and understanding of the leader element in the leadership process. Limitations of Trait Theory: There is bound to be some subjective judgment in determining who is regarded as a good or successful leader The list of possible traits tends to be very long. More than 100 different traits of successful leaders in various leadership positions have been identified. These descriptions are simply generalities. There is also a disagreement over which traits are the most important for an effective leader The model attempts to relate physical traits such as, height and weight, to effective leadership. Most of these factors relate to situational factors. For example, a minimum weight and height might be necessary to perform the tasks efficiently in a military leadership position. In business organizations, these are not the requirements to be an effective leader. The theory is very complex Implications of Trait Theory: The trait theory gives constructive information about leadership. It can be applied by people at all levels in all types of organizations. Managers can utilize the information from the theory to evaluate their position in the organization and to assess how their position can be made stronger in the organization. They can get an in-depth understanding of their identity and the way they will affect others in the organization. This theory makes the manager aware of their strengths and weaknesses and thus they get an understanding of how they can develop their leadership qualities. Conclusion: The traits approach gives rise to questions: whether leaders are born or made; and whether leadership is an art or science. However, these are not mutually exclusive alternatives. Leadership may be something of an art; it still requires the application of special skills and techniques. Even if there are certain inborn qualities that make one a

Swati Robert 3rd Sememster Roll No. 521021718 good leader, these natural talents need encouragement and development. A person is not born with self-confidence. Self-confidence is developed, honesty and integrity are a matter of personal choice, motivation to lead comes from within the individual, and the knowledge of business can be acquired. While cognitive ability has its origin partly in genes, it still needs to be developed. None of these ingredients are acquired overnight. Q.4 Vikram is a trade union leader with fifteen years of experience in a motor parts manufacturing factory. One of the laborers in the factory met with an accident while on duty. What will be the different means by which he will ensure that the laborer is well compensated for the work-related injury? Ans: Trade unions represent labourers when they have crises at work. If employees feel they are being unduly treated, they can ask their union representative to help in solving their issues with the manager or employer. Unions also offer their members legal representation. This is normally to help people get monetary reimbursement for workrelated injuries or to assist people who have to take their employer to court. To many people, their job is a key part of the person they think they are. It's not just a means to an end, it's a crucial part of their identity. That's why injury or illness caused by negligence in the workplace can have an impact and ramifications far beyond the immediate physical suffering. In the event of being injured in a work related incident which has been caused by the negligence of others, you have every right to feel let down, either by your employer, or your workmates. While compensation can never fully make up for the distress of a work accident, it can help reimburse you for any wages lost and provide a sense of justice being done on your behalf. What You Need To Make a Work Injury Claim: In order to make a claim for an accident at work, you will need evidence which proves that your injuries have been caused by negligence or working practice in the workplace. This evidence could take the following forms: Witnesses Employers logs Previous similar work accidents Ambulance attendance at the scene An accident book Doctors notes There are many others forms the evidence could take, often dependent upon the nature of your workplace. It will then be up to yourself and the expert injury solicitor working on your behalf to prove that the injuries were the result of negligence on the part of your employer. It has to be borne in mind when making a claim such as this that you will be giving evidence against your employer.

Swati Robert 3rd Sememster Roll No. 521021718 Many people will feel uncomfortable doing this but always remember the following: You are not alone. An expert solicitor will be on hand to guide you every step of the way. Employers are insured against any losses incurred as a result of your claim - you won't be taking any money direct from your boss. Employers may actually welcome one or two cases which help them to strengthen health and safety standards, thus avoiding larger lawsuits in the future. Strictly enforced laws mean that employers unwilling to compensate for workplace injuries or to adapt their practices will face far stiffer penalties. You may still feel worried about making a claim against your boss, despite the legislation in place to protect employees who do so, in which case it will be valuable and reassuring to discuss the details of your case and any possible ramifications with a solicitor before embarking upon any action. There are some injuries which crop up on a regular basis as a result of workplace accidents. These include back injuries, hernias and hand injuries. In the case of common injuries such as these, the claim may be easier to settle as the levels of compensation are already well known. Work injury claims are often complicated by the nature of the workplace itself, and for more detail on the issues involved see our site dedicated to employer liability and work injury claims in detail. It should be borne in mind that the prohibitive cost to employers of workplace injuries means that they often go to great lengths in order to prevent accidents. The Workmans Compensation Act 1923 is one of the earliest pieces of labour legislation. It covers all cases of accident arising out of and in the course of employment and the rate of compensation to be paid in a lump sum, is determined by a schedule proportionate to the extent of injury and the loss of earning capacity. The younger the worker and the higher the wage, the greater is the compensation subject to a limit. The injured person, or in case of death the dependent, can claim the compensation. This law applies to the unorganised sectors and to those in the organised sectors who are not covered by the Employees State Insurance Scheme, which is conceptually considered to be superior to the Workmans Compensation Act. Q5. List the advantages of collective bargaining. Ans: Collective Bargaining: International Labour Organisation (ILO) defines collective bargaining as negotiating regarding various terms and conditions of employment between employer and employees to arrive at an agreement. Collective bargaining serves a dual purpose, that is, it provides an approach of determining the wages and conditions of work for a group of workers covered by the agreement through free and voluntary negotiations between the two independent parties concerned in the organisation. It also facilitates the employers and workers to define by agreement the rules governing their relationship.

Swati Robert 3rd Sememster Roll No. 521021718 According to Boone and Kurtz[1], collective bargaining is a process of negotiation between management and union representatives for the purpose of arriving at mutually acceptable wages and working conditions for employees. Collective bargaining can be beneficial to both the workers and the employers. For workers, collective bargaining ensures that employees are provided with adequate wages and good working conditions. It helps employers stabilise industrial relations by maintaining industrial peace that otherwise may be disrupted by unrest of the labour. Collective bargaining is a discussion process between employers and employees. It is termed collective because both the employer as well as the employees behaves as a group rather than individuals. It is known as bargaining because it involves methods of arriving at an agreement that involves various proposals and offers.

Collective Bargaining Advantages: You now know that collective bargaining is a process of bargaining in groups as opposed to individual bargaining. The bargaining could relate to many factors such as the payment of the employees, holiday, overtime, bonus, shift arrangements and so on. There are many benefits of collective bargaining. Some of them are the following: It facilitates settlement of any disputes without any conflict It ensures that there is peace between both the parties through dialogues It facilitates participation from both the parties. It ensures mutual trust and understanding between both the trade union and the management of the organisation. It facilitates stabilised union membership in societies that have multiple unions. It ensures healthy industrial relations. It makes the employees feel more involved and wanted in the organisation It ensures that individual stress and employee insecurities are discussed It establishes the employee and the management rights in the organisation. It develops a sense of responsibility among the employees It ensures that the strength of workforce is increased. It in turn increases the overall bargaining capacity of the workforce It ensures that the morale and productivity of the employees is increased. Effective collective bargaining ensures that the trade unions movement is efficient It facilitates in securing a prompt and fair settlement of grievances. It provides a flexible means for the adjustment of the wages and employment conditions It facilitates the management to resolve issues at the bargaining level rather than taking up complaints of the individual workers. It ensures a sense of job security among the employees It ensures that a channel of communication is open between the workers and the management. This further increases worker participation in decision making. It plays an essential role in settling and preventing industrial disputes

Swati Robert 3rd Sememster Roll No. 521021718 It ensures that a harmonious industrial climate is established. This helps the pace of nations efforts towards economic and social development. It encompasses fluidity and ample scope for a compromise, for a mutual give-and-take before the final agreement is arrived at. Importance to employers: It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making. Collective bargaining plays a vital role in settling and preventing industrial disputes.

Importance to society: Collective bargaining leads to industrial peace in the country It results in establishment of a harmonious industrial climate which supports which helps the pace of a nations efforts towards economic and social development since the obstacles to such a development can be reduced considerably. The discrimination and exploitation of workers is constantly being checked. It provides a method or the regulation of the conditions of employment of those who are directly concerned about them. Q.6 Write a note on common applications of Human Resource Information System (HRIS)? Ans: Human Resource Information Systems: Human Resource Information Systems (HRIS) is a software application that caters to the human resource information needs of the organisation like monitoring employee attendance, payroll and benefits administration, career development, employee information, performance management, and training. HRIS is a collection of components which work together to gather, process and store information that the HR department can use to make decisions, to coordinate and to plan its activities. HRIS facilitates easy access and management of employee related information. For example, Terasen Pipelines, a Canadian company was using a manual system to maintain its records. But when its workforce increased, it began to use an HRIS to maintain accurate employee records. Initially, mainframe computers were used by organisations to manage human resource management functions. A large amount of capital was needed to operate these systems.

Swati Robert 3rd Sememster Roll No. 521021718 The advent of client-server architectures and Software as a Service (SaaS) models has lowered the maintenance costs of HRIS. Common Applications of Human Resource Information Systems: An HRIS is an integrated approach to acquiring, storing, analysing and controlling the flow of information throughout an organisation. 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. 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.

Swati Robert 3rd Sememster Roll No. 521021718 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: 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.

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 pre-screening 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

Swati Robert 3rd Sememster Roll No. 521021718 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. 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. 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. Compensation and Benefits:

Swati Robert 3rd Sememster Roll No. 521021718 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.

Master of Business Administration-MBA Semester 3 Subject Code MU0012 Subject Name Employee Relations Management Assignment Set- 2 (60 Marks)
Q.1) Explain the approaches for management of overseas branches. [10 Marks] There are four major approaches to manage overseas branches. They are: Ethnocentric

Swati Robert 3rd Sememster Roll No. 521021718 Polycentric Regiocentric Geocentric Ethnocentric: It is often seen that the decisions relating to value, culture and strategies are determined by the parent company. Very little power is vested in the subsidiaries. The subsidiaries of a company are managed by an expatriate or a former staff of the parent company. The locals have very little to do with the way things are carried out in a company. Lines of communication are usually uni-directional as commands are issued by the headquarters. The host-country branch has a diplomatic role to play but is dominated by the customs of the parent company. It is believed that this is during the first stage of development of companies intending to go international and the management at the headquarters takes an alternative step only after a specific period of time (when the company has made progress or established itself internationally). Many American and Japanese companies have been charged of trying to introduce employee relations policies and strategies which are suitable to their home culture but incompatible with the host-country tradition. This strategy is followed in organisations as they believe that their strategies are not only the best but also the only way to proceed. The organisation runs the risk of not taking notice of the tradition and culture of the hostcountry thereby offending the local employees. The local employees in the subsidiary may not believe in the same values and thoughts and hence do not adapt to the parent company regime. McDonalds follows the ethnocentric approach. Polycentric: Here the local conditions, values and system are taken into consideration in a company. The subsidiary is governed by a home-country (the country in which the headquarters is located) staff and considered as a self-governing business unit. Major decisions, strategy planning and financial investments are decided at the headquarters. However, in this approach the manager of the subsidiary is a local staff and manageremployee relationship is better. This approach helps in maintaining the policies in employee relations as it is compatible with the culture and regime of host-country. Companies like Lever Brothers and Unilever follow the polycentric approach. Regiocentric and Geocentric: Here the subsidiaries are not limited to boundaries such as home country or the region where an organisation has presence. It is organised on a regional basis or geographic basis such as worldwide or global. Control of staff and decision making responsibility is based on regional or geographic constraints. In case of regiocentric, the managers are appointed from the host-country and in case of geocentric, the managers are from any part of the world, that is, the most suited person is appointed for the job. Colgate and Palmolive are examples of companies that follow geocentric approach. It is seen that the companies which follow Polycentric, Regiocentric or Geocentric are truly globalised. In such companies we can expect development of a region or worldwide approach to employee relations policies and practices. Q.2) what is Employee participation? Give examples. [10 Marks] Employee participation is the process by which workers take part in the decision making processes, and do not just blindly follow the instructions of their supervisors. Employee participation is essential for empowerment of employees in an organisation.

Swati Robert 3rd Sememster Roll No. 521021718 Empowerment implies decentralising authority in an organisation. Team participation is very essential for empowerment. Team members are motivated to make decisions by themselves according to the guiding principles and structures that are set up for self management. Quality initiatives within an organisation require employee participation. Each and every employee is encouraged to take incorporate quality measures in all activities in order to satisfy the needs of the customers. Employee participation is also essential for the efficient management of human resources in organisations. Employees feel motivated when organisations empower employees to take decisions. Employee participation is also known as Employee Involvement (EI). Examples of schemes which encourage employee participation include the following: Project Management Teams or Quality Teams: Workers perform tasks that assign significant responsibilities to the team. Suggestion Schemes: Workers are provided with channels through which they can convey new ideas to their supervisors. Frequently, deserving suggestions are suitably rewarded. Consultation Exercises and Meetings: Workers share their ideas and experiences which help to achieve the common tasks and goals. Delegation of Responsibilities Within the Organisation: Employees who deal with customers often have to be empowered to make their own decisions and assigned more responsibilities. Multi-Channel Decision Making Techniques: Decisions are not only taken in a descending flow, they also result from communications upwards, sideways, and in various other ways within the organisation. By now you must be familiar with Collective Bargaining. It is also a form of employee participation. Collective bargaining represents a process of negotiation about working conditions and terms of employment whereby two or more parties (employers and employees associations) come together and negotiate with a view of reaching an agreement.3 Thus collective bargaining enables employees to take part in the decision making process through the employee representatives of the trade unions. Adoption of the Employee Stock Ownership Plan (ESOP) makes employees stakeholders in the company and hence increases employee participation and feelings of ownership. For example, United Airlines of the U.S.A. gave 55% of its equity stake to its employees in exchange of pay cuts and was able to secure employee participation. The Occupational Health and Safety Management Systems of U.S.A. also recommends employee participation at all levels in decisions that affect the health and safety of employees. It suggests the use of safety representatives, joint labourmanagement committees, work groups and teams to support employee participation in implementing health and safety schemes. Employees can conduct workplace inspections, analyse safety hazards, develop and revise safety rules, and train new employees. Q.3 Write note on organizational justice. [ 10 marks] Organisational Justice is the main factor of citizenship behaviour and its related outcomes are satisfaction, and commitment towards work. It also focuses on employee's equality in outcomes such as payment and the procedures to determine those outcomes.

Swati Robert 3rd Sememster Roll No. 521021718 Organisational justice builds trust in employee, which in turn gets displayed in citizenship behaviour. The concept of justice differs based on the people's cultural values. The people with collectivistic cultures differ from the people with individualistic cultures, in terms of equity and equality. With good organisational justice, you can have more positive outcomes from an employee in the workplace. If employees are treated with full justice, they follow all the rules and regulations of an organisation. They will be more committed towards work, have more trust in organisation, and feel more satisfied with the justice they receive. Type of Organisational Justice Organisations focus on three specific forms of justice. They are: Procedural Justice Procedural justice is identified by the equality of processes that helps to determine the type of outcomes used, the way they are distributed, and to whom the outcomes are given. Some of the organisational procedural justice includes freedom from bias, accuracy, consistency, and correction of errors. Distributive Justice Distributive Justice is identified by the reasonable employees in an organisation that recognise the actual outcomes they obtain. Issues may arise if the employee experiences something negative in the workplace that cannot be prevented. Issues may also arise if they do not get the same outcome they expected to have or when the outcomes are inadequate. Interactional Justice Interactional justice is identified by the awareness of equality in the procedural treatment of others. Issues may arise if the employees are judged wrongly and denied of respect or privacy. A low level of interactional justice can be related to possibility of sexual harassment. Recent study shown that differences in personality and aggressive behaviour of an individual effect the way they react to the inequality in the organisation. Employees perception of procedural justice is determined by re-organising their performance rating. With this rating system, employees' view of organisational justice increases. Q4) Describe the main actors involved in industrial relations. [10 marks] The following are the main actors, who are directly involved in Industrial Relations: Employers: Are those who engage a worker and pay the worker a fixed salary on return for services rendered. Employers have the right to employ and fire employees. Their decisions like relocation, introduction of new technologies, mergers and acquisitions affects their employees. Employee: Is an individual who is hired by a person or a business and is remunerated for the services rendered. Employees need a good working environment. They have a right to voice their opinions and convey their grievances. Employees generally form a union in order to obtain their rights from the management. Employees expect the union to support them on all issues. Government: They influence employee relations by means of laws, rules, regulations, and policies. The government establishes the legal framework for management-trade union interaction. The government also helps in settlement of industrial disputes. They also regulate incomes and establish minimum wages. For example, in Australia, the Commonwealth has enabled employers under their jurisdiction, to bypass unions and

Swati Robert 3rd Sememster Roll No. 521021718 negotiate directly with individual employees. But the individual states have reaffirmed the collective bargaining process and the role of unions. Trade Unions: They promote and protect employee interests. Trade unions help in making decisions by following the process of collective bargaining and negotiations, with the management. Good trade unions improve communication between the management and the employees. Trade unions also help in settling of industrial disputes. For example, the United States has low levels of unions compared to the European Union. Hence, the companies in the United States hire and fire employees at will, while their European counterparts have to consult the trade unions. Employer Associations: They help in enhancing the performance of enterprises. Employer Associations represent employers in collective bargaining, depose before tribunals and courts, and engage in public and media relations. They also provide a forum for discussions and debates on specialised subjects. Employer Associations advise, educate, and assist members in industrial disputes. They also lobby with the government for industrial reforms. Courts and Tribunals: These help in resolving industrial disputes. Labour courts examine the legality of orders passed by the employers, the discharge of employees, withdrawal of concessions or privileges, matters relating to lock-outs and strikes. Industrial tribunals deal with matters related to wages, compensations and other allowances, bonuses, rules of discipline, retrenchment, and closure of organisations. For example, the Australian Industrial Relations gives great importance to courts. The courts give quick binding decisions thus, minimizes economic losses. The influence of each actor varies in different industrial systems. In some systems, the government dominates the relationships and in some others, it only plays a minor role. Some industrial systems emphasise employee interests while others emphasise employer interests. Employees usually interact with their employers through representative unions. Some countries facilitate these trade unions, whereas some countries discourage them. Hence, the goals and actions of the trade unions vary from country to country. Q5) Explain the steps in formal grievance redressal procedure. [10 Marks] There are three formal stages to redress any grievance. Each stage has a form which is numbered according to the stage it belongs. First, it has to be noted that the grievances have to fall under one of the following categories to be considered as one: Amenities Compensation Conditions of work Continuity of service Disciplinary action Stage I of Grievance Redressal An employee who has a grievance meets the shift-in-charge and discusses it. If necessary, the employee obtains a copy of grievance form 1. It is done within a week of occurrence of the aggrieving incident or when the employee became aware of the situation. In case of promotion, a time limit of six weeks from the date of the promotion is permitted. The employee fills up the particulars and hands it over to the shift-in-charge and obtains an acknowledgement receipt in return. The shift-in-charge makes the necessary enquiries

Swati Robert 3rd Sememster Roll No. 521021718 and returns the form to the employee with remarks filled in the form within two working days from the date of receipt of the form. In cases where reference to higher authorities or to another department is necessary, more time is provided. Stage II of Grievance Redressal If the matter is not resolved at Stage 1, the employee obtains grievance form 2 and submits it to the next senior manager. The senior manager arranges a meeting within three working days. The department head discusses the issue with the concerned supervisor and the employee and returns the grievance form to the employee with remarks. A unionised member may assist the employee at this stage of grievance redressal. Stage III of Grievance Redressal If the employee is not satisfied with the reply of the departmental head, the employee appeals to the Chairman of his Unit Grievance Redress Committee within seven working days of the receipt of reply at Stage II. The employee obtains a copy of grievance form 3 from the shift-in-charge. The recommendations of the Unit Grievance Redress Committee are considered unanimous and binding on the employee, if no objections are raised by either the management or the union. If objections are raised, the matter is sent for further consideration to the resident director who discusses it over with the president or the deputy president before arriving at a definite conclusion. Figure depicts the formal flow of grievance procedure.

Grievance Handling Procedure within an Organisation Q6) What are the different types of disciplinary problems. [10 Marks] The main types of disciplinary problems are explained as follows: Excessive Absenteeism: Absenteeism occurs when an employee does not report to work due to time off, illness or any other reason. Excessive absenteeism results in loss of productivity. Absenteeism is corrected by employing progressive discipline. Employees need to be aware of the absenteeism policy of the company. They also have to be aware of the fact that the company monitors employee absence. Employees need to take responsibility for their absenteeism and substantiate their absenteeism with valid records like medical certificates in case of health related absences. Poor Timekeeping: Reporting late to work, leaving early, indulging in extended tea or lunch breaks, doing personal work during office hours, and other time-wasting practices

Swati Robert 3rd Sememster Roll No. 521021718 reduce the time spent doing productive work. Poor timekeeping disrupts business and creates a bad atmosphere. These habits have to be curbed and employees need to know that it is mandatory for them to spend certain fixed hours at their workstations or premises doing productive tasks. Improper Personal Appearance: Dress codes are enforced in organisations to project a professional appearance or for safety reasons. Employees are to be made aware of the consequences of their inappropriate attire. For example, synthetic clothes can catch fire easily. Company policy also needs to describe situations where the employee has to dress formally. Substance Abuse: Alcohol and drug abuse can lower employee concentration and decrease performance. Substance abuse also results in absenteeism, accidents at workplace and inappropriate behaviour. Organisational policies on substance abuse need to be communicated with the staff. Employees who are addicted to alcohol or drugs have to be counselled or helped in other ways like therapy and detoxification programmes. Defective Performance: Defective performance results when a task is not completed on time, or is of sub-standard quality, or the task is not done according to requirements. An employee may perform poorly either due to lack of interest or due to lack of capability. Managers need to assess poor performances individually, determine the constraints and take corrective actions. Poor Attitudes: Sleeping on the job, being careless while working, fighting with coworkers, gambling in the work place, insulting supervisors, being rude to customers and colleagues, and such practices reflect poor attitudes. These actions can adversely affect other employees. Thus, these attitudes have to be corrected to maintain a good and productive work atmosphere. Violation of Health and Safety Rules: Smoking in unauthorised places, failure to use safety devices, not following safety rules regarding fire safety, dealing with hazardous chemicals, electrical and mechanical equipment and radiation protection are serious violations and have to be dealt with immediately and effectively. Insubordination: Insubordination can take the form of refusing to perform a legitimate task that has been assigned, ignoring the instructions of managers, criticising or challenging the orders of a superior, using abusive language or making disrespectful gestures like rolling the eyes. Insubordination can affect the morale of the entire team. Organisations need to spell out their policies on insubordination. Managers have to be equipped with proper procedures to deal with insubordination. Workplace Violence: Companies need to have training programmes to its security personnel so that they recognise warning signs and know how to deal with violent behaviour of employees. Employee handbooks need to clearly state that violent behaviour will not be tolerated and will result in termination. Harassment: This behaviour causes discomfort to the co-workers and reduces employee morale. Making crude and sexual remarks or forcing another co-worker to do certain non-legitimate tasks constitutes harassment. For example, a manager may repeatedly ask an unwilling subordinate for a date. Companies need to have in place a clear sexual harassment policy and employees have to be trained on what constitutes harassment. Theft and Sabotage: Sometimes employees steal money, equipment, supplies or confidential information belonging to the company. Some aggressive employees may

Swati Robert 3rd Sememster Roll No. 521021718 damage or destroy organisational equipment and facilities. Some employees may falsify records and accept bribes and indulge in actions that are detrimental to the organisation. Organisations have to strictly deal with such problems.