Compensation

Compensation is the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required. Gary Dessler in his book Human Resource Management defines compensation in these words "Employee compensation refers to all forms of pay going to employees and arising from their employment." The phrase 'all forms of pay' in the definition does not include non-financial benefits, but all the direct and indirect financial compensations.

According to Cascio, "Compensation includes direct cash payments, indirect payments in the form o employee benefits and incentives to motivate employee to strive for higher levels of productivity." According to S.P. Robbins, "The term compensation administration or wage and salary administration denotes the process of managing a company's compensation programme. The goals of compensation administration are to design a cost-effective pay structure that will attract, motivate and retain competent employees."

Nature of Compensation 1) Maintaining equity in the distribution of wages and salaries in the organization; 2) Maintaining competitiveness in the wage market, in comparison to other players in the industry: 3) Matching employee expectations. 4) Reinforcing positive employee behavior and contribution to the organization; 5) Eliminating any discrepancies in wage administration in the organization:

Objectives of Compensation 1) Attracting and Retaining Personnel: From organization's point of view, the compensation management aims at attracting and retaining right personnel in the organization, in the Indian corporate scene, there is no dirth of personnel at operative levels but the problems come at the managerial and technical levels particularly for growing companies. Not only they require persons who are well qualified but they are also retained in the organization. In the present day context, managerial turnover is a big problem particularly in high knowledge-based organizations. 2) Motivating Personnel: Compensation management aims at motivating personnel for higher productivity. Monetary compensation has its own limitations in motivating people for superior performance. Alfie Kohn has gone to the extent of arguing that corporate incentive plans not only fail to work as intended but also undermine the objectives they intend to achieve. He argues that this is due to inadequate psychological assumptions on which reward systems are based His conclusions are as follows: i) Rewards Punish People: Their use confirms that someone else is in control of the employee. ii) Rewards Rupture Relationships: They create competition where teamwork and collaboration are desired. i) Rewards Ignore Reasons: They relievemanagers from the urgent need to explore why an employee is effective or ineffective. iv) Rewards Discourage risk Taking: Employees tend to do exactly what is required to earn the reward, and not any more. 2) Rewards Undermine Interest: They distract both manager and the employee from consideration of intrinsic motivation. Notwithstanding these arguments, compensation management can be designed to motivate people through monetary compensation to some extent. 3) Optimizing Cost of Compensation: Compensation management aims at optimizing cost of compensation by establishing some kind of linkage with performanee and compensation. ' 4) Consistency in Compensation:

Compensation management tries to achieve consistencyboth internal and external in compensating employees. Internal consistency involves payment on the basis of criticality. Jobs and employees' performance on jobs. Thus, higher compensation is attached to higherlevel jobs. Similarly, higher compensation is attached to higher performers in the same job. External consistency involves similar compensation for a job in all organizations. Though there are many factors involved in 604 determination of wage and salary structure for a job in an organization which may result into sonic kind of disparity in the compensation of a particular job as compared to other organizations, compensatiOn management tries to reduce this disparity.
Equity . Meaning of Equity can be defined as an employee reward. It represents ownership in a company. Ownership typically is in the form of stock (also known as shares, securities). Why Equity is used to Reward Employees? Need of Equity Organizations use equity to reward their employees for a number of reasons, including: I) Align Management/Employees with Shareholders: Employee interest in the profitability and success of the company is often limited to the desire for job stability. Equity rewards help to deal an ownership culture in which employees take a greater interest in the factors driving business success. It should be noted that many employees sell their Ownership. Interest-as soon as the rules and regulation's allow them to do so. 2) Build Motivation: Many components of the total rewards package can be used to motivate *employees. Money is one of the most powerful motivators available. Equity rewards programs offer employers effective methods to financially motivate employees. 3) Conserve Resources: In many cases, equity rewards allow companies to provide competitive compensation without depleting other assets, such as cash.

4) Wealth Creation: The actual realized gain can create significant opportunity for employee wealth creation. 5) Tax Advantage: Equity reward programs may offer tax advantages to the employee and/or the employer. In some cases, employers may significantly reduce their tax obligations through the use of various equity reward programs. 6) Attraction and Retention! Creative use of equity rewards, coupled with the right mix of other total rewards components, may provide the competitive edge to attract, motivate, and retain key talent.
Dearness allowance Dearness allowance is a part of the total compensation a person receives for having performed his or her job. For example, workers in India might have a base salary or pension, alongwith an allowance for housing and the dearness allowance. D.A. is a percentage of the original salary. The percentage is reviewed and may be changed on a six-month cycle. Deamess allowance is provided to help against rise in prices for those on pension. This allowance may also be provided to family members receiving benefits from a worker's pension.

Features of Dearness Allowance (DA) It is the second important part of the compensation structure, which compensates the employee fully or partly for the loss of real earning. 2) It takes care of the price inflation that affects the purchasing power of the employees. 3) It is a regular and continuing part of the compensation package that gets changed according to the price increase, i.e., to establish a real wage concept. 4) It is linked with the price index (an approved calculation of the Government formulated from time to time depending upon the changes in the price index). However, the Wage/Salary (W/S) policy defines the system of the DA changes and the management is committed to use this protection device.

EMPLOYEE BENEFITS AND SERVICES Concept of Benefits and Services Management is concerned with attracting and keeping employees, whose performance meets at least minimum levels of acceptability; and at keeping 'absenteeism' and 'turnover' to tolerable levels. The provision of 'benefits' and 'services' can be and are important in maintaining the employees and reducing or keeping turnover and absenteeism low. 'Employee benefits and services' on the other hand, are available to all employees based oil their membership in the organization. The purpose of such benefits and services is to retain people in the organization and not to stimulate them to greater effort and higher performance. They foster loyalty and act as a security base for the worker. Employee benefits and services include any benefits that the empioyee receives in addition to direct remuneration. Benefits and services, however, are indirect compensation because they are usually extended as a condition of employment and are not directly related to performance. Employee benefits and services are alternatively known as fringes, service programmes, employee benefits or hidden payroll. The word fringe neither is nor appreciated by management practitioners on the ground that nowadays benefits and services constitute substantial labor cost for any organization. They are no longer mere fringe costs or fringe items. They are important to managements, employees and unions alike. Similarly, the terms benefits and services are often used interchangeably by some writers: But some maintain distinction between the two. For these people, the term benefits applies to those items for which a direct monetary value to the individual employee can be ascertained, as in the case cf pension, medical insurance, or holiday pay. The word service applies to such items as a company newspaper, company or purchasing service, for which a direct money value for the individual employee cannot be readily established. However, we have used the two terms interchangeably.

Objectives of Benefit and Service Programmes An organization designs and establishes a benefit-and-service programme to achieve the following ends: 1) To keep in line with the prevailing practices of offering benefits and services which are given by similar concerns? 2) To recruit and retain the best personnel; 3) To provide for the needs of employees and protect them against certain hazards of life, particularly those which an individual cannot himself provide for; 4) To increase and improve employee morale and create a helpful and positive attitude on the part of workers towards their employers; 5) To make the organization a dominant influence in the lives of its employees with a view to gaining their loyalty and cooperation, encouraging them to greater productive efforts; 6) To improve and furnish the organizational image in the eyes of the public with a view to improving its market position and bringing about product acceptance by it;

Bonus
Meaning of Bonus One of the most popular trends in compensation is the use of bonuses: one-time lumpsum payments given for meeting a performance goal. The dictionary meaning of the word 'bonus' is 'something to the good', 'especially extra dividend to the shareholders of a company', 'distribution of profit to insurance policyholders, etc.', or 'gratuity to workmen beyond their wages'.

Bonus means a cash payment made to employees in addition to wages. It represents a share of profits made by an industry as a result of the joint contribution of capital and labor. Bonus is no more an ex-gratia payment. It is industrial right of the employees capable of being subject of industrial dispute. Wages rest on the contract of employment and have nothing to do with the profits made by the employer. Bonus comes out of profits and is necessarily dependent on the profits made in a particular year. Bonuses can be based on objective goal attainment or a subjective rating. In some organizations all employees share in the bonus awards if organizational goals are met, whereas in others the size of the bonus is tied to each individual's performance. Advantages of Bonus 1) Bonuses not only help the employer control costs but appear to improve employee satisfaction. 2) Bonuses arrive in one lump sum; they may feel to the employees like more money than a comparable-sized raise, 3) Bonus plans are easy to maintain because they do not require much documentation and are quite flexible. 4) A major advantage of a bonus plan is that it is based partly on organizational performance; in a bad year, when corporate perfoanance is down and resources are strained, bonuses will be much smeller or even nonexistent. On the other hand, when bonuses cannot be paid, it tends to hurt morale.

Wages

1) Payment of Wages Act, 1936 2) Minimum Wages Act, 1948 The payment of Wages Act, 1936 was pissed to regulate the payment of wages certain classe.i of persons employed It is essentially meant for the benefit of industrial employees not getting very high wages to safe guard their interest . It also provides rirregularities in payment of wages and unauthorized deductions therefore by the employers. Further, it ensures payment of wages in a particular form and at regular intervals without unauthorized deductions. Scope of the Act [Section 1(2)1 The Act extends to the whole of India. It was extended to Jammu and Kashmir by the Central Labor Laws (Extension to Jammu and Kashmir) Act, 1970. According to sub-section 4 this act applies in the first instance to the payment of wages to, 1) To persons erataelou, 2) To persons employed (otherwise than in a factory) upon any railway by a railway administration or either directly or through a sub-contractor by a person fulfilling a contract with a railway administration, and 3) To persons employed in an industrial or other establishment specified in subclauses.(a) to (g) of clause (ii) of Section 2.

According to Section 5 the State Government may after giving three months notice of its intention of so doing by notification in the Official Gazette extend the provisions of this Act or any of them to the payment of wages to any class of persons employed in any establishment of class of establishments specified by the Central Government or a State Government under sub-clause (h) of clause (ii) of ,Section 2; provided that in relation to any such establishment owned by the Cential Government no such notification shall be issued except with the concurrence of that government... 'According to Section 6 nothing in this Act shall apply to wages payable in respect of a wage-period which over. . . Such wage-period average one thousand six hundred rupees a month or more. . 2. Minimum Wages Act, 1948 The Minimum Wage Fixing Machinery Convention was held at Geneva during 1928 and the resolution of that was embodied in Articles 223 to 228 of the International Labor Code to represent fixation of minimum wages in the case of trades or parts of trades where such bonds are absent or wages are exceptionally low. The foundational aim of the Minimum Wages Act is to prevent exploitation of labor in industries. The philosophy of the Act and its significance in India has been explained by the Supreme Court in one of the decided cases (Uichoyi versus State of Kerala AIR 1962 SC 12) as follows: "In an undeveloped country that faces the problem of unemployment on a very large scale, it is not unlikely that labor may offer to work even on starvation wages. The policy of :he Act is to prevent the employment of such sweated labcr in the interest of general public and so in prescribing the minimum rates, the capacity of the employer need not be

considered. What is being prescribed is minitnum wages rates which a welfare State assumes every employer must pay before he employs labor". The Minimum Wages Act enables the Central and State Governments to fix minimum rate of wages payable to employees in a selected number of sweated industries. The Act applies to the whole of India. Objectives of Minimum Wages Act the Act provides for fixing minimum rates of wages in certain employments to which provisions of this Act apply. The justification for statutory fixation of minimum wages is obvious. Such provisions which exist in more advanced countries are even more necessary in India where workers' organizations yet poorly developed and the workers' bargaining power is consequently poor. 1 he Act provides for fixation by the state government of minimum wages for employments covered by the schedule to the Act. Use items in the schedule are those where 'sweated labor' is most prevalent or where there is a big chance of exploitation of labor. After a time, when some experience is gained, more categories-of employments can be added and the Act provides for additions to the schedule. A higher period is allowed foi fixation of minimum wages for agricultural labor, as administrative difficulties in this case will be more than in other employments covered by the schedule. The Act also provides for periodical revision of wages fixed. 8.8. LAWS-0 'N SOCIAL SECURITY It includes the following Acts: '1) Employees' State Insurance Act, 1948 2) Employees' Provident Fund (and Miscellaneous Provisions) Act, 1952 3) The Maternity Benefit Act, 1961 Laws on social security Employees' State Insurance Act, 1948 The Employees' State Insurance Act was enacted to provide'certain benefits to employees in the case of sickness, maternity and employment injury and to make provisions for other matters in relation thereto. All employees of factories or establishments to which this Act applies are required to be insured under the Act so that they can get aid and assistance in case of contingencies provided under the Act. The Act shall apply to all factories (including factories belonging to the Government) other than seasonal factories. The Act shall not, however, apply to a factory or establishment belonging to or under the control of the Government whose employees are otherwise in receipt of benefit substantially similar or superior to the benefits provided under the Act. A factory or an establishment to which the Act applies shall continue to be governed by the Act notwithstanding that the number of persons employed therein at any time falls below the limit specified or the manufacturing process therein ceases to be carried on with the aid of power. All the employees of factories or establishments to which the Act applies are required to be insured under the Act so that they can get the aid and assistance. The ESI scheme applies to all employees whether they are directly employed by the principal employer or not. Employee covers also persons, engaged temporarily or casually as employees employed for wages on any work connected with the work of an establishment or factory. The Act excludes specifically the employees whose nionthly wages'.eieluding remuneration fc overtime AA' ork exceed Rs. 6,500 and any member of Indian.Naval, Military or Air Fonse.

Employees' Provident Fund Act, 1952 The Employes' Provident Fund and Miscellaneous Provisions Act, -1952 is one-of the important social security legislations which provides for the institution in. factories and other. Establishments compulsorily provident. funds for the employees.to use the object of the Act is to provide for provider,, '- fund pension and insurance. Section 1 provides that this Act extends to the whole of India except the State of Jammu and Kashmir. The Act was brought into force.fromNovember, 1952. The latest amendments to the Act Were made in 1988 on the basis of a high level committee appointed by the government to review the working of the EmPloye4s'...PrOident Fund organization. Objective of the Act The-objective of this Act is to provide for the institution of provident fund family pension fund and deposit-linked insurance fund for employees in factories and other establishments. Applications of the Act [Section 1(2)); The Act shall apply: i) to every establishment which is a factory engaged in any in.dustry-speeified in Schedule 1 to the Act and, which twenty or more persons are employed; and.

The maternity benefit Act (1961) The Act was passed to regulate the employment of women in certain estabilishment for certain periods before and after child birth and to provide for maternity benefit and certain other benefits.

Object of the Act The object of the Act is to protect the digniiy of motherhood and the dignity of anew person's birth by providing for full and healthy maintenance of the woman and her child at this important time when she is not working. Scope and Coverage of the Act (Section 2) The Act applies, in the first instance, 1) To every establishment being a factory, mine or plantation including any such establishment belonging to Government and to every establishment wherein poisons are employed for the exhibition of equestrian, Acrobatic and other performances; 2) To every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which 10 or more persons are employed or were employed, on any day of the preceding 12 months; provided that the State Government may, with the approval of the Central Government, after giving not less than two months' notice of its intention of so doing, by notification in the Official Gazette, declare that all or any of the provisions of this Act shall apply also to any other

Managerial/Executive Compensation Executive According to Tapornoy Deb, "Executive compensation refers to short-term and long-term financial and non-financial rewards given to the top ranking executives under a contractual, legal and contractual mandate". 8

Difference of Executive Compensation from Other Employees Executive compensation includes base salary, bonus long-term incentives, and perquisites (perks) payable to executive. Executive compensation has become a hot topic in compensation management, both at global level as well as in India. It has become a hot topic globally because. It differs from compensation plan of other employees. The, clifference is in the following ways: . Executives are in a position to fix their own compensation package within the guidelines framed by an organization or guidelines framed by the Government (in India, these guidelines exist). Executive frequently operates under bonus and stock option plans that can dramatically increase their total compensation. Because of this phenomenon, the gap between executive and non-executive remuneration is widening at an alarming rate, from 80 per cent in 1980s to 400 per cent in 1990s. According to a report from Time Magazine, top five executives account for about 75 per cent of stock options while 15 per cent options are accounted by another top five per cent. These figures compel people to wonder whether the CEOs are busy in managing the company or the share prices. . Executives are offered perquisites that are not available to other category of managerial personnel. Such perquisites may include free housing, company's vehicles for personal use, free insurance, liberal expense accounts, post-retirement consulting contracts, and so on. 4) In many cases, executives have the benefit of golden parachute. It is designed by the executives as a means of protecting themselves if a merger or hostile takeover occurs. Such a parachute typically provides either severance compensation to the departing executive or a guaranteed position in the newly created entity.

Factors Affecting Executive Compensation 1) Complexity of the Job: The degree of complexity in an executive's job is much higher as compared to other organizational jobs. Such complexity is directly dependent on size of organization, lines of products/services, and geographical area coverage. Thus, in an organization of large size with multi-lines of products/services and multi-locations, the degree of complexity in the executive's job is much higher. Naturally executives in such organizations need to be paid more. Executives of Fortune 500 companies draw much higher compensation than their counterparts in other companies.

2) Competency Required: Different jobs require different types of competencies. Organizations that operate in a comparatively stable environment adopt mechanisticoriented systems which require comparatively lesser flexibility and variety in executives' competencies. As against this, organizations that operate in a highly dynamic environment (like consultancy, information technology, etc.) adopt organic-oriented systems which lequire high flexibility and variety in executives' competencies. In the latter category organizations, the level of executive compensation tends to be higher than the former. For example, Charles Wang, CEO of Computer Associates International (USA) collected around S650 million as salary, bonus, and stock-based incentives in 1999. 3) Capacity to Pay: Executive compensation depends on the paying capacity of an organization. Paying capacity is directly dependent on the earning capacity of the organization. Thus, growing organizations are in a better position to pay more for its executives than stable or declining organizations; high-profit-margin organizations can pay more than low-profit-margin organization 4) Philosophy: Organizational philosophy regarding attracting and retaining human talents, particularly key executives, affects the 1 level of executive compensation. An organization which believes in getting "the best -class executives" pays much higher than those organizations that do not have such a belief. 5) International Impact: International human resource management practices, including executive compensation practices, have their impact on the executive compensation practices of many countries. India is no exception to this. With economic liberalization, many multinationals have entered India which pays quite high compensation to their executives, _ Further, Indian executives .are placed by these organizations on global assignments with an opportunity for substantial saving. This practice has compelled Indian organizations to make their executive compensation level near par with that of multinationals. 6) Legal Provisions: Legal provisions also affect the level of executive compensation. In India, legal provisions exist under the Companies Act that restricts the managerial compensation.

9 Th module INDUSTRIAL RELATIONS

According to Dale Yoder, "Industrial relati_on is a relationshiptio.ctx; veen management and employees or among employees and their organizationahat characterize and grow out of employment". According to R. A. Lester, Industrial relations involve attempts to have workable solutions between conflict and economic security, between discipline and industrial democracy, between authority and freedom and between bargaining and co-operation". According to Allan Flanders, "The subject of industrial relations deals with certain regulated or institutionalized relationships in industry. Personal or in the language of sociology, 'unstructured' relationships have their importance for management and workers, but they lie outside the scope of a system of industrial relations" Professor Nature of Industrial Relations 1) Part of Management: Industrial Relation is that part of management which is concerned with the - manpower of the enterprise whether machine operator, skilled worker or manager. 2) Outcome of Employment Relationship: Industrial relations are outcome of employment relationship in an industrial enterprise as it is a relation between employer and employees, employees and employees and employees and trade unions. 3) Skill Development: Industrial relations develop the skills and methods of adjusting to and cooperating with each other. 4) Creates Rules and Regulations: Industrial relations system creates complex rules and regulations to maintain harmonious relations. 5) Involvement of Government: The Government involves shaping the Industrial relations through laws, rules, agreements, awards etc. .

Objectives of Industrial Relations 1) Safeguard the Interest of Labor and Management: To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production. 2) Enhance Economic Status of Workers: To improve the economic status of the worker by improving wages, benefits and by helping the worker in evolving sound budget; Strikes and Lockouts: To eliminate, as far as is possible and practicable, strikes, lockouts and Ghcraos by providing reasonable wages, improved living and working conditions, said fringe benefits. .4) Government Control: Control exercised by the state over industrial undeataking with a view to regulating production and promoting harmonious industrial relations. To establish government control. .

, 5) Participation of Workers: To provide an opportunity to the workers to have a say in the management and decision-making. To improve workers' strength, view their problems through mutual condition negotiations and consulting with the management; 6) To encourage and develop trade unions in order to improve the workers ' strength; 7) Avoid Industrial Conflict: To avoid industrial conflict or strife and develop harmonious relations, which are." In the productivity, of workers and the industrial progress of a country. 8) Maintain Industrial Democracy: To establish and nurse the growth of an Industrial Democracy based on labor partnership in the sharing of profits and otinanagerial decisions, so that ban individuals personality may have full stature for the benefit of the industry and of the country. As well. 9) Raise Productivity: Tq increase productivity to a higher level in an era of full employment by reducing the

. Theories of Industrial Relations The major theories of industrial relations are explained below: 1) Convergence Theory: This theory argues that universal tendency of technological and industrial development is to impose common constraints and drive industrial systems (as well as other features of social structure) towards common pattern or convergence. 2) Consensus Theory: This theory regards industrial relations primarily as a process of converting conflict into regulation. The ability of employees to exercise some countervailing power provides a check on unilateral management decision-making over employment relationships. The process of rule-making and 4t1 interpretation is one of administrative procedures and management decision-making process. Industrial relations thus involves all aspects of job regulation, the making and administering of the rules, which regulate employment relationships regardless of whether they are seen as being formal or informal, structured or unstructured. The regulatory output of industrial relations is generally seen to be 'rules', any organized social structure needs to establish formalized 'norms' of behavior amongst its members. This theory focuses on the generation, expression and resolution of conflict but does not provide an '- adequate framevork for understanding either the integrative nature of the parts, which comprise 'industrial relations' or its relationship to the wider contexts within which it operates. 13) Labor Process Theory: The core of the labor process theory rests on the fact that the social relations which employees enter into in order to produce useful things becomes a capitalist labor process when the capacity allow to work is utilized as a means of producing value, and therefore on the unique characteristics of labor as a commodity. Four elements encompassing this theory are:

i) The labor/capital relationship is essentially one of exploitation wherein surplus value from work activities accrues to capital. ii) The logic of accumulation requires capital continually to develop the production process and reduce the costs of production. iii) Continual development of Th eproduction processes required the establishment and maintenace of both general and specific statures of control. Iiii) Laws on Industrial Relations Three important pieces of legislation have played a major role in shaping Indian industrial relations. They are: I) the Trade Unions Act, 1926 2) The Industrial Employment (Standing Orders) Act, 1946 3) The Industrial Disputes Act, 1947 these enactments are significant not merely in themselves, but also in the. Way they have interacted upon each other to produce a distinctly Mdian system. The most striking features of Indian industrial relations law are: absence of provisions on recognition of a trade .inion as a collective bargaining agent and the omnipresent role of the government in regulating the industrial relations. However, there are number of other laws that help in maintaining good industrial relations:

The Industrial Employment (Standing Orders) Act, 1946 The condition of employment of industrial worker is one of the major sources of dispute between the employer and the employees. The terms and conditions of employment were earlier governed by a contract between the employer and the employees. Very often such contracts were not even reduced to writing. The causes of friction were mostly about contracting method, that is, conditions of recruitment, disciplinary actions, fines, discharge, leave, holidays etc. The Industrial Employment (Standing Orders) Act requires the employers to define with sufficient precision the conditions of employment under them and to make the said conditions known to the workmen by them. The Act also serves the purpose of having uniform Standing Orders. Applicability every industrial establishment which employs on any day 100 or more workmen is required to adopt a standing order specifying the conditions of employment of its workers. Industrial establishment means: 1) An industrial establishment as defined in clause (ii) of section 2 of the Payment of Wages Act, 1936 2) A factory as defined in clause (m) of section 2 of the Factories Act, 1948 or 3) A railway as defined in Clause (4) of section 2 of the Indian Railways Act or 4) The establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen.

. The Industrial Disputes Act, 1947 (IDA) Rule 81-A of the Defense of India Rules which empowered the Government to refer disputes was due to lapse on October, 1, 1946 and was kept in operation by the 'Emergency Provisions (Continuance) Ordinance, 1946. Was time experience of the working of the rule, however, had convinced the government that the rule was extremely useful and that its incorporation in the permanent labor law of the country would do much to check The industrial unrest which was gaining momentum owing to the stress of post war industrial readjustments. Pending the enactment of the Industrial Disputes Act, the provisions of the Defense of India Rule 81-A were kept in force for a further period of six months by the Emergency Provisions (Continuance) Ordinance, 1946. The Industrial Disputes Bill was introduced by the Government of India in the Legislative Assembly on th-October, 28, and 1946. After the Select Committee's Report on February, 3, 1947, with some amendments,passed in March 1947 and became the law from April, I., 1947 repealing the Trade Disputes Act 1929.

Extent of the Act the India [Section 1 (2)3. It applies to all industries whether they are carried on by private owners or by the Government. The Act has been amended from time to Lime. The latest amendment to the Act was made in August, 1984. Objectives of the Act The object of all labor legislation is two-fold: 1) To ensure fair terms to the workmen, and 2) To prevent disputes between employers and employees so that production might not to adversely affect' and the larger interests of the public might not suffer. The machinery of the Industrial Disputes Act has been devised with the object of preventing industrial; stri17 maintaining industrial peace and achieving collective amity between labor and capital by means of conciliation, mediation and adjudication.

The Factories Act, 1948 The first Factories Act in India was passed in 1881. It was designed primarily to protect children and to provide for some health and safety measures. It was followed by new factories Act in 1891, 1911, 1922 and 1934. The Act of 1936. Was passed to implement the recommendations of the Royal Commission on Labor in_Inclia.and the Conventions of the International Labor Organization. The expecience of the working of this Act revealed a number of defects weaknesses which hampered effective administration of the Act. Fulther, the provisions of this Act regarding safetT, health and welfare of workers were also found to be inadeqUate and unsatisfactory

Hence, a new Factories Act was passed in 1948 and came into force we.f. 1st April, 1948. The objective of passing the Factories Act, 1948 was to consolidate and amend the law regulating labor factories. It was enacted primarily to protect workers employed in factories against industial and occupational hazards. It tries to secure for the workers employment conditions conducive to their health and safety. The Factories Act, 1948 is a piece of legislation covering all aspects regarding factories namely: approval, licensincing and registration of factories, the inspecting authorities, health, safety, welfare, working hours, employment of workers - adults and young children, annual leave and penalties,

Collective bargaining

Introduction before the Industrial Revolution, the employer, more or less, enjoyed unquestioned powers relating to wages, working conditions and other matters affecting employees. The weak bargaining maw.are -1.8 of employees tempted them, on occasions, to exploit the vulnerable situation to their advantage.as a result became restless and widespread protests followed. Governmental intervention was of littrls help. Workers realised the importance of fighting jointly on all work-related matters. This collectivee fighting spirit is at the back of collective bargaining. Concept Bargaining is the process of cajoling, debating, discussing and even threatening so as to arrive at an amicable agreement for those being represented. Collective bargaining is a procedure by which the terms and conditions of workers are regulated by agreements between their bargaining agents and employers...

The basic objective of collective bargaining is to arrive at an agreement on wages and other conditions of employment. Both the employer and the employees may begin the process with divergent views but ultimately try to reach a compromise, making some sacrifices. As soon as a compromise is reached, the terms of agreement are put into operation. The underlying idea of collective bargaining is that the employer and employee relations should not be decided unilaterally or with the intervention of any third party. Both parties must reconcile their differences voluntarily through negotiations, yielding some concessions and making sacrifices in the process. Both should bargain from a position of strength; there should be no attempt to exploit the weaknesses or vulnerability of one party. With the growth of union movement all over the globe and the emergence of employers' associations, the collective bargaining process has undergone significant changes. Both parties have, more or less, realised the importance of peaceful co-existence for their mutual benefit and continued progress.

Features some of the important features of collective bargaining may be listed thus:

Collective: It is collective in two ways. One is that all the workers collectively bargain for their common interests and benefits. The other is that workers and management jointly arrive at an amicable solution through negotiations. . Strength: Across the table, both parties bargain from a position of equal strength. In collective bargaining, the bargaining strength of both parties is equal. It is industrial democracy at work. Flexible: It is a group action where representatives of workers and management expend energies in order to arrive at a consensus. It has sufficient flexibility, since no party can afford to be inflexible and rigid in such situations. The unique feature of collective bargaining is that usually the parties concerned start negotiations with entirely divergent views but finally reach a middle point acceptable to both. It is therefore not a one-way street but a give and take process. Voluntary: Both workers and management come to the negotiating table voluntarily in order to have a meaningful dialogue on various troubling issues. They try to probe each other's views thoroughly before arriving at an acceptable solution. The implementation of the agreement reached is also a voluntary process. Continuous: Collective bargaining is a continuous process. It does not commence with negotiations and end with an agreement. The agreement is only a beginning of collective bargaining. It is a continuous process which includes implementation of the agreement and also further negotiations. Dynamic: Collective bargaining is a dynamic process because the way agreements are arrived at; the way they are implemented, the mental make-up of parties involved keeps changing. As a result, the concept itself changes, grows and expands over time.

Objectives To settle disputes/conflicts relating to wages and working conditions. To protect the interests of workers through collective action. To resolve the differences between workers and management through voluntary negotiations and arrive at a consensus. d. To avoid third party intervention in matters relating to employment.

Managing Employee relation The accelerat&I growth of diversity in the workforce over the past 20 years has spawned new developments in managing employee relations, making it one of the biggest challenges facing managers. To- meet this challenge, managers must improve skills such as active listening, adaptability and decision-making. These core skills can assist supervisors and managers in tackling difficult issues that may arise within their workforce. However, while the skills mentioned above are key, the two most important skills for managing employee relations: I) Interpersonal communications and 2) Conflict management.

. Interpersonal Communications The first skill for managers to understand and practice is interpersonal communications, because it is the foundation for all actions in the workplace and it alloWs the supervisor or manager an opportunity to build relationships with the overall workgroup without alienating anyone in the work environment. Working with diverse groups of people requires a tremendous amount of interaction. If these interactions are positive, they can help create the right workplace climate, attitudes, beliefs and behaviors. In addition, because interactions occur daily, it is important for managers to have the respect of their employees. If this respect is absent, the supervisor or manager will have a difficult time getting things accomplished. Four dimensions to optimize interpersonal communications are: i) Influence: This dimension is for those who thrive on constant interaction with people. The interaction allows individuals the oppoitunity to develop and extend their personal sphere of interpersonai influence. This provides professional satisfaction with the ability to influence, negotiate and leverage valuable information as a method to enhance ideas. Think of these individuals as having highly developed salesmanship skills because they have the ability to constantly keep people highly motivated, no matter what the situation. ii) Interpersonal Facilitation: This dimension describes those who are perceived and known as "people persons". They are very aware of the interpersonal aspects of the work environment and are intuitive, because they are constantly monitoring the situation behind the scenes. Those who focus on this dimension pose critical questions to themselves, such as: What is going to be our strategy to ensure positive employee relations? Moreover, what employee relations issues are going to impact the business and what is the proper way to address them? "People persons" use these questions and subsequent answers to look for ways to improve organizational effectiveness through proactive solutions. iii) Relational Creativity: This dimension focuses on nurturing and developing relationships with diverse groups through visual and verbal imagery. An example of this would be the leader of a marketing team who develops and implements a marketing strategy designated for a particular consumer segment, or the plant manager who prepares a speech that the CEO of the organization will deliver to employees, as a method to excite employees about the organization's new direction.

iv) Team Leadership: This dimension is for those who are committed to maintaining and fostering good employee relations with the wurkforce. They enjoy the day-to-day interaction as a method of feeling good about themselves. Those who embrace this dimension don't care for individual tasks such as writing reports, working on a computer, or any other activity that doesn't allow them to engage others as a means to feel satisfied and fulfilled. With respect to the four relational dimensions, it is important to note that a manager can have a profound interest in one, two, three or all four dimensions. It is also important to understand that managers need to keep these dimensions in mind when engaging, diverse groups, developing people and creating employee relations strategies.

, Conflict Management The second skill for managers to leverage is conflict management. Learning to leverage this skill can help in resolving employee relations issues quickly and effectively, and can create greater satisfaction with the workgroup. There are seven components to effective conflict management: I) speak your Mind and Heart: As a manager, you need to speak up and say what you think. People have a diffiault time articulating their needs, wants and desires. This exacerbates the conflict because the communication gets distorted and people become frustrated. For example, an employee who is very upset with their manager's management style. He goes to the manager to discuss how he reels, but, instead of focusing on the issue, the manager brings up other issues, which distorts the communication and frustrates the employee. Remember, instead of avoiding the problem, address it and speak up. 2) Listen Listening skills are the foundation to managing conflict. The focus should be on what the person says, not your response to what is said. Focus on what is positive in the conversation instead of negative, and inform the other party of what you are doing. 3) Express Strong Feelings Appropriately: Conflict of any type creates a surge in emotions such as happiness, anger, despair and sorrow. The job of a manager is to manage those emotions through respect and careful examination of what the person is experiencing. Never attack the individual talking. Always try to establish a relationship with your workforce. 4) Remain Rational for as Long as you can: This means keeping. You focused on resolving the conflict and remaining connected to the individual throughout the conversation. Then, summarize the situation and ask questions. 5) Review what has been Said: Ensure that all issues regarding the conflict are clarified, and if they are not, ask questions to get answers to the things on don't know . 6) Learn to Give and Take: The conversation must be two-sided, not with you doing all of the talking. This will help provide a short- or long-term solution to the conflict. 7) Avoid all Harmful Statements: When you verbally attack, you create enemies and put individuals on the defensive. This means that you are reducing the chances of quickly resolving any conflict, just remembers the Hippocratic Oath: "Do no harm".

As stated in the seven points above, conflict management requires a great deal of listening, clearly articulating the issues, asking questions and providing solutions. These techniques can help a manager to improve his conflict-management skills enabling him to go a long way in fostering positive employee relations with a workforce.

PRODUCTIVITY BARGAINING.

Meaning of Productivity Bargaining Concept of productivity bargaining was given by Allan Flanders. Productivity bargaining is the use of collective bargaining to revise inefficient working methods, by specifying changes in working practices in a collective agreement, the enforcement of which is seen as the joint responsibility of management and the trade union. Inducement to accept the changes and responsibilities involved is provided by considerable improvement in wage, incentives, bonus, etc., financed by the increase in effectiveness and productivity produced by more efficient working practices. Productivity bargaining has often been described as integrative bargaining because the parties appear to be more concerned with increasing the total sum available for distribution rather than with adjusting their respective shares of a static sum.

Productivity bargaining has been described as "An agreement in which advantages of one kind or another, such as higher wages or increase leisure, are given to workers in return for agreement on their part to accept changes in working practices or in methods or in organization of work which will lead to more efficient working.

Purpose of productivity bargaining is to raise labor productivity and lower unit labor costs. Aims at improving labor productivity, not so much by requiring workers to make greater efforts, but by eliminating the impediments to higher productivity. Moreover, it is an exercise in problem-solving and creating new gains for both, the management and labor.

Features of Productivity Bargaining Productivity bargaining is a complex process. It involves lengthy, detailed negotiations about the implementation or a variety of management techniques such as work-study and job evaluation. The content of negotiation is more or less comprehensive in the sense that it includes not only bargaining over earnings but bargaining over other related matters such as reduction in hours of work, introduction or extension of shift working, manning of machines, and the introduction of new payment systems and re-allocation of job control. Productivity bargaining generally occurs at the level of the enterprise or company and covers almost all employees. These wage increases are often reflected in the form of increased prices and in monopolistic industry, the increased wage cost of the agreement is passed-on to the consumers.

10th module Trade Unions Introduction the boundaries set by collective agreements, unions, past practices and court decisions. Thus, based on personal preferences. He cannot afford to reprimand subordinates openly. He has to act with' changes. The employer can no longer hire and fire employees. He cannot promote/demote someone over the years, the contractual relationship between employer and employee has undergone several inanagerial indiscretions, whimsical actions and one-sided exploitative acts have no place in the industrial relations scene - especially when we look at labour management relations (relations between employer-employee employee-employee, employer-union, etc.) in large undertakings. Today the relationship between employe and employee is contractual and reciprocal. The rights and obligations of employers (frame rules for work, discipline employees who defy commands, etc.) are well documented in various pieces of labour legislation. The same cannot be said of the rights and obligations of employees which are somewhat imprecise. Stern action against problems such as late coming, sleeping, loitering, absenting during working hours, poor workmanship, non-compliance of rules, non-performance of tasks, ignoring superior's instructions would evoke strong protests from employees. Collective strength forces employees to sacrifice overall organisational interest, turn the issue on hand into a tug-of-war, impairing labour nianagement relations. It has become virtually impossible to exercise some of the rights of the employees such as right to strike, freedom to associate, right to appeal against injustice in recent years -thanks to the cost saving efforts of employers fighting unstoppable ongoing battles with competitive forces. Unions have found their base slipping badly on several counts, i.e., disinterestedness of workers in union-related work, depleting ranks, cash crunch owing to insufficient funds, shrinking political support, inability to sustain organised protest for a long time and more dangerously the threat of employers drawing shutters down, when pushed to the wall (like retrenchment, wage cuts, closures)! Lets look into these troubling issues more closely in the ensuing sections.

Definition A trade union is a formal association of workers that promotes and protects the interests of its members through collective action. Under the Trade Union Act of 1926, the term is defined as any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workers and employers, or for imposing restrictive conditions on the conduct of any trade or business and includes any federation of two or more unions. Let us examine the definition in parts: Trade union is an association either of employees or employers or of independent workers. It is a relatively permanent formation of workers. It is not a temporary or casual combination of workers. It is formed on a continuous basis. It is formed for securing certain economic (like better wages, better working and living conditions) 0 and social (such as educational, recreational, medical, respect 'for individual) benefits to members. Collective strength offers a sort of insurance cover to members to fight against irrational, arbitrary and illegal actions of employers. Members can share their feelings, exchange notes and fight the employer quite effectively whenever he goes off the track.2 It includes a federation of trade unions also.

 It emphasises joint, coordinated action and collective bargaining.

Objectives of Trade Unions The failure of an individual worker to seek solutions to problems, while discharging his duties, personal as well as organisational, led workers to form a formal group which is identified at present as trade union. Thus, the main objective of any trade union is to protect the interest of workers/employees in the organisation. However; the workers' interest/welfare is a broad term in which various subjects - wages working conditions, working hours, transfers, promotions, recruitment and classification, training, discipline, leave and holidays, dearness allowance, bonus, incentives, quarters, sanitation, iployee relations, mechanisation, facilities to unions, welfare, employee relations and the like are eluded. Thus, a trade union is meant to conduct negotiations on behalf of the individual workers in respect of several items. However, trade unions specifically Concentrate their attention to achieve the following objectives Wages and salaries: The subject which drew the major attention of the trade unions is wages and salaries. Of course, this item may be related to policy matters. However, differences may arise in the process of their implementation. In the case of unorganised sector the trade union plays a crucial role in bargaining the pay scales. Working conditions: Trade unions with a view to safeguard the health of workers demands the management to provide all the basic facilities such as, lighting and ventilation, sanitation, rest rooms, safety equipment while discharging hazardous duties, drinking water; refreshment, minimum working hours, leave and rest, holidays with pay, job satisfaction, social security benefits and other welfare measures. Discipline: Trade unions not only conduct negotiations in respect of the items with which their working conditions may be improved but also protect the workers from the clutches of management whenever workers become the victims of management's unilateral acts and disciplinary policies. This victimisation may take the form of penal transfers, suspensions, dismissals, etc. In such a situation the separated worker who is left in a helpless condition may approach the trade union. Ultimately the problem may be brought to the notice of management by the trade union and it explains about the injustice meted out to an individual worker and fights the management for justice. Thus, the victimised worker may be protected by the trade union. Personnel policies: Trade unions may fight against improper implementation of personnel policies in respect of recruitment, selection, promotions, transfers, training, etc. Welfare: As stated earlier; trade unions are meant for the welfare of workers. Trade union works as a guide, consulting authority and cooperates in overcoming the personnel problems of workers. It may bring to the notice of management, through collective bargaining meetings, the difficulties of workers in respect of sanitation, hospitals, quarters, schools and colleges for their children's cultural and social problems.

Employee-employer relations: Harmonious relations between the employee and employer are a sine qua non for industrial peace. A trade union always strives for achieving this objective. However, the bureaucratic attitude and unilateral thinking of management may lead to conflicts in the organisation which ultimately disrupt the relations between the workers and management. Trade union, being the representative of all the workers, may carry out continuous negotiations with the management with a view to promoting industrial peace. Negotiating machinery: Negotiations include the proposals made by one party and the counter proposals of the other party. This process continues until the parties reach an agreement. Thus, negotiations are based on 'give and take' principle. Trade union being a party for negotiations protects the interests of workers through collective bargaining. Thus, the trade union works as the negotiating machinery

Safeguarding organisational health and the interest of the industry: Organisational health can be diagnosed by methods evolved for grievance redressal and techniques adopted to reduce the rate of absenteeism and labour turnover and to improve the employee relations. Trade unions by their effective working may achieve employee satisfaction. Thus, trade unions help in reducing the rate of absenteeism, labour turnover and developing systematic grievance settlement procedures leading to harmonious industrial relations. Trade unions can thus contribute to the improvements in level of production and productivity, discipline and improve quality of work life.

Theories of trade union Revolution theory According to Marx trade uninism represents a prime instrument OD class struggle between proletarian workers and captalist businessman According to Marx is the centre that provides locus for collecting the forces of working classes. Referring to the struggle between the class of wage-earners and te class of employees, Marx contended that modern technique of production has concentrated and social means of production under the ownership of the captalist who, thuis became the absolute master, The workers of course remains a free person ti dispose of the labour as he wishes but having lost possession of the means of production which he had as a master workman during the preceding stage ce 4 industry, his freedom is an illusion only and his bargaining power is no greater than if he were a slave". The theory of class war and dialectical materialism enunciated by Marx has created a class of trade unionists who regard labor organization as essential to bring about a revolutionary and fundamental change in the social order in which we are living. For them trade unions aredhe instruments to overthrow capitalism. Marx also believed that capitalism itself, although unintended, renders effective aid to its enemies by developing three tendencies. . : i) The tendency of heavy concentration of wealth and capital in the hands of a few of the largest capitalists reduces the number of the natural supporters of capitalism;

ii) The tendency towards a steady depression of wages and a growing misery of the wage-earning class keeps revolutionary order alive and _ iii) The inevitable and frequent economic crises under capitalism disorganize it and hasten it on towards destruction. - Although Marx later showed some modification in the direction of an evolutionary and peaceful passing of capitalism rather than a revolutionary and violent overthrow of it, his fundamental view of trade union movement as a political agency for affecting the end of capitalism did not change. In his view, it was imperative for the workers of the world to collect in an international trade union movement to accomplish the death of capitalism.

2) Non-Revolution Theory: The Yv'ebbs' theory (a non-revolutionary theory of industrial democracy) considers trade unionism to be the extension of the principle of democracy in the sphere of industry. Trade unions are "institutions for Overcoming managerial dictatorship to strengthen individual workers and to give them some voice in the determination of the conditions under which they have to work-, The webbs also recognized permanency, of class conflict but they thought that a solution could be found out through equality and collectivieagreements. Therefoie, according to Webbs, trade unionism is a vitsl instrument of the evolutkntary process; it is not an instrument for the revolutionary overthrow of the capitalist order but, on the contrary, it is a means of equalizing the bargaining power of labor and capital and thus encouragine the adoption of common eules. Which are practical and human.Trade unions provide s means by which workers can cope with the stronger .political and economic power of employers and can introduce democracy into working relationships? Webbs' theory has achieved wide acceptance today. Sumner H. SlitCher, extending Webbs' viewpoint still further in his analysis of the purposes of unionism and values of union membership states that wageearners could not exercise much control over working conditions through individual bargaining is an unsatisfactory way of controlling work and working conditions because employers, who use methods which improve the labor supply, are not sure of gaining as a result and employers, who use methods which spoil the labor supply, Suffer no direct loss. Consequently, he believed that workers, through their unions, developed a system of work rules and traditions - system of industrial jurisprudence' which served as a means of production to employees in their work.

3) Scarcity-Consciousness Theory of Labor Movement: Selig Perlman (University of Wisconsin, U.S.A.) notes that the character of the labor movement in any country must depend upon the particular combination of three factors: i) The resistance power of capitalism, determined by its own historical development; ii) The 'degree of dominance over the -labor movement by the intellectual's mentality which regularly under-estimates capitalism's resistance power and over-estimates labor's will to radical change; and iii) The degree of maturity of a trade union mentality. Arguing that the workers recognize the scarcity of employment opportunities and the employers possess a high degree of bargaining advantage over them. The contended that the impulse of employees is not "to suppress the employer but to suppress their competitive menaces. To do so they

feel they must organize into a uniortand engage in a.class struggle against the employer. It is the labor's aim to continue increasing its bargaining power and with its-share of industrial control, just as it is the employer's aim to maintain a starys quo or better. Although this presupposes a continuous struggle, it is not a revolutionary but an oppormnist struggle". While Marx conceived technical progress as the cause of class struggle, Perlman saw forces of market as the basis of the conduct of organized labor and industrial struggle. 'Made

4) Soda-Psychological Theories of Unionism: This regard unions as providing opportunities for timbers to satisfy a wide range of basic human wants and 'needs. According to C.H. Parker, "Union membership offers opportunities to satisfy what he regarded as the basic instincts of workers, opportunities denied to them by the conditions of industrial employment". Giving a socio-psychological interpretation to trade unionism. Robert F. Hoxie believed that trade unions have emerged to group psychology - a trade. Union constituting a common interpretation and a set of beliefs concerned ith the problems confronting the-workerS and generalized program of amelioration. He established the idea of functional types of trade unions and found the essence of unionism to be "a social philosophy - ait. Interpretation of the socia: facts and relationship which bear upon the particular group of workers". According to him, "workers similarly situated, economicady and socially. And closely associated w ith similarity, in an outward organization as a, like-minded group". Hoxie further states that "whileunionism in its ultimate effects on industrial organization and conduct of industry is democratic in the sense of its eftbrt to take from the hands of employers autocratic feudalistic control and put a share or the control and conduct into the hands bf workers - tending to democratic industrial revolution - unionism in its own organization and conduct is hardly to be called democratic. It is interesting to see that the Gandhian approach to trade unionism views class collaboration and harmony rather than class struggle leading to the emergence of trade unionism. According to this view, trade onionistn is not a capitalistic.-"The idea is to take front capital labor's due share and no more and this, not by paralyzing capital. But by reform among laborers from within and by their own self-consciousness; not again through the cleverness of non-labor leaders. But by educating labor to evolve its leadership and its own self-reliant. Self-existing organization. Its direct aim not in the last degree political. Its direct aim is internal reform and evolat ion of internal Strength. The indirect result of this evolution. When and if it ever becomes complete, us ill naturally. Be tremendously political". I he Gandhian approaches to trade tmionism s it as essentially a reformist organization and economic institution to promote class collaboration as "capita: and labor should supplement and help eech other. They should ho a great fam4 living in unity and harmony". The observation of H.J. Laski deserves mention that "The union problem is a complex of economic, legal; ethical and social problems which can be understood and net only by knowing the facts and genesis of the vlewpoint of organized labor in all its

diversity. - contradictions and shifting character and by considering this viewpoint relation to developing social conditions and social traditions" .

ii) Revolutionary Unions: These unions aim at replacing the Present system with the new and different institutions based oh she ideals that are.regarded as preferable. These unions aim at dest-Oying the capitalistic system, abolish rivate and installing socialist or communistic systems. These unions are of two types: a) Political Unions: The unions gain power through political action. These unions resort to political action to protect the workers interest the unions prefer minimization of wage differentials. b) Anarchist Unions: The. Unions try to destroy the existing economic system by revolutionary means.

2) Union Classified on the Basis of Membership Structure: The structrire of trade unions in India varies from organization to -drganization. However, the structure can be classified into four types viz.: Craft Elnitiiis: it is tile lntPres c tho trade union. 1 is usually formed of workers belonging to the same craft, occupation or specialization no matter in what industry, or trade they happen to he employed. These unions are called as horizontal unions, the basic logic behind the formation of such unions is that the workers belonging to the same craft eld face similar problems mostly non-managerial personnel form such unions. Examples of craft unions are Drivers Associations, Signaling Staff Union in Indian Railways, etc. Advantages the Craft Unions a) Craft units give most stable relationship. b) They provide needed training through apprenticeship. c) They have strong bargaining power as they comprise of skilled employees. d) They secure high wages and better benefits to their members.

Disadvantages of Craft Unions a) Employer can play one union against another and can also break the unions. b) Craft unions have become irrelevant in the modern days due to increasiug generality at service conditions of al! Classes of employees.

c) These unions keep majority of the worls.ers outside the unionism. ii) General Unions: If the workers of any industry, any region and of any job or occupation form into on union in order to protect the Overall interests of the workers such unions are called general unions. The Jamshedpur Labor Union, whose membership includes workers engaged in different industries and crafts of Jamshedpur, is an example of a general union. iii) Industrial Unions: If the workers of different categories form into a union that union is called Industrial union. These unions are also called "Vertical" unions. The logic behind the formation of these unions is that workers of the same industry have the common bend and they are governed by same lades and regulations and are administered by same management. Moreover, the problems of all the same industry are more or less common. The importance of these unions has been increasing in recent times. The Rashtriya Mill Mazdoor Sangh and Girni Kamgar Union at Bombay belong to this type. Advantages of Industrial Unions According to the National commission en labor, 1969. The advantage of industrial unions ate: a) They provide a joint facility for collective bargaining. b) They introduced the .measure of uniformity in the principle governing all .aspects of service and working conditions. C) They coordinate sectional claims of different levels arid different natures of employees within an industry. One important drawback of this type of union is that the skilled workers in it feel that they are s'wamped by the unskilled workers and that in the negotiations with the employers their specific demands are not adequately taken care of, The msultisthat these dissatisfied Workers soonform their separate union.

The trade unionism The trade unionism In India developed quite slowly as compared to the western nations. 10.3.1. Main Features of Trade Unionism in India . Competitive Unionism s . Quantitative growth of unions, . Proliferation of unions, . Low membership per union, -Dual membership, --_ - Inter and intra-union rivalry. 2) Politicization atrade unions and trade union movement, 3) Outside leadership, 4) .General tendency to be militant, 5) Occupational unions, 6) Unionization of white collar employees. 7) - Unions on caste, community and occupational bases, . Philosophy of Trade Unionism A single worker, in a situation of excess supply of labor, finds himself in a disadvantageous position in dealing with his employer. 2) Trade unions provide a support system to the workers. 3) The unions give workers a chance to take part in the creation and shaping of their working and living standards. _ 4) By creating the unions and pursiting"Collective actions to secure his interest, the Worker. Experiences solidarity and also a feeling of being an important member of the society. 5) Unions create a sense of democracy by involving the -workers in their internal administration as well as participating in collective bargaining as the representatives of workers.

Employee Associations . Meaning of Employee Associations Employee associations are professional organization of employees which are concern with employee voice. An employee association is an organization .whose members belong to a particulai profession. Many people '.vould probably not place professional employee associations in the union category. Some economists argue, however, that employee associations often have the same objectives and implement the same practices to meet those objectives as craft, industrial, and public employee unions; consequently, these associations should be considered unions. These. associations are not labor unions per se, and in the past they were generally reluctant to espouse unionlike aims or to endorse union methods. The largest of these associations is the National Education Association (NEA). Forms of employee association are: 1) Staff association, ) Company union, 3) House union, 4) Professional association.

Activities of Employee Associations In general, the Association's activities in pursuit of its functions include-, 1) Keeping members informed of theoperation of existing laws and practices and legislative proposals which may affect, or tend to affect, the interests of employers. 2) Provide consultancy services, education, training and human resource development; 3) Provide advice to members on management-employee relations; 4) Assisting members in collective agrepment negotiations by providing advice, information on current trends, etc., and/or actually taking part iuthe.negotiations;

Career Management

Meaning It is the process of designing and implementing goals, plans and strategies to enable organization to satisfy employee needs while allowing individuals to achieve their career goals. Meaning and Definition of Career a Career is described as the evolving sequence of persons work experiences overtime. Effective career, benefits organization.individuals and society as a whole. According to Oxford English Dictionary, Career is defined as an individual's "course or progress through life or distinct portion of life". It is usually considered to pertain to remunerative work (and sometimes also formal education). - Greenhaus and Schein described several themes underlying different definitions of the term career, including: I) Property of an Occupation or Organization: When used in this way, career describes the occupation.itself, e.g., sales or accounting or an employee's tenure within an organization, e.g., my college career 2) Advancement: In this sense, career denotes one's progression and increasing success within an occupationA: or organization.

3) Status of a Profession: Some use the term career to separate the "professions-, such as law or engineering, from other occupations, such as plumbing, carpentry, or general office work: In this view, the lawyer is said to have a career, while the carpenter does not. 4) Involvement in One's Work: Sometimes cateer is used in a negative sense to describe being extremely involved in the task or job one is doing, as in "Don't make a career out of it". 5) Stability of a Person's Work Pattern: A sequence of related jobs is said to describe a career, while a sequence of unrelated jobs does not. A career is a sequence of positions held by a person during the course of a lifetime. It comprises of n series of work related activities, that provide cbntinuity, order and meaning to a person's life. This is an objective view of a person's career. There is also a subjective element in the concept of career. A career consists of the changes in values, attitudes and motivations that occur as a person grows oldet

Stages of Career
A career includes many positions, stages and transitions just as a person's life does. Most of us have gone or will go through the under mentioned five stages

: 1) Exploration: This is the career stage that usually ends in one's mid-twenties as one makes the transition from college to work. From an organizational standpoint, this stage has least relevance as it takes place prior to employment. However, the organization can still track the minds of young people by offering internships to them or offering on-the-job training to bright students. For the individual, this is the stage of self exploration seeking answers to various puzzling questions about careers. 2 Establishment: This is the career stage, where one begins the search for work and picks up the first job. It includes the first experiences on the job, peer group evaluations, personal tensions and anxieties that confront a person tying to make his mark. This period is characterized by committing mistakes, learning from those mistakes and assuming increased responsibilities. . 3) Mid-Career: Mid-career is a stage that is typically reached between the age of 35 and 50. At this point, one may continue to show improved performance, level off or begin to decline; one is no longer viewed as a `learner'... Mistakes committed, would be viewed seriously and may invite penalties as well. If one is good enough, one may grow and turn out good results. If one does not have the same fire in the belly when they started their career, the best thing would be to hold on to what one has. Technically speaking, a plateaued career stares. Plateauing is a condition of stagnating in one's current job. Since one is no longer ambitious and are more or less happy with what comes our way, the organization can place us on jobs, which require experience and maturity. , 4) Late Career: This is the stage where one relaxes a bit and plays the part of an elder statesperson. For those, who continue to grow through the mid-career stage, this is the time to command respect from younger employees. One's varied experiences and judgment are greatly valued and our word will carry weight; undoubtedly, one can teach others and share one's experiences with others. For those who have stagnated or deteriorated during the previous stage, the late career brings the reality that they are no longer required to run the race and its better to redirect the energies to family, friends and hobbies. 5) Decline: During this period, a person's attention may turn to retirement. The achievements of a long career and the frustrations and anxieties that go along with that phase are left behind. Regardless of whether one is leaving a glorified career or a dismal job, one has to make adjustments and get along with people and things. =================================================================================

Career Planning

According to. Edwin B. Flippo, "A career as a sequence of separate but related work activities that provide continuity, order and meaning in a person's life". According to Douglas T. Hall, ''An individually perceived sequence of attitudes and behaviors associated with work related experiences and activities over the span of the person's life" . According to Schermerhorn, Hunt and Osborn, "Career planning is a process of systematically matching career goals and individual capabilities with opportunities for their fulfillment". According to Schwind, Das and Wagar, "Career planning is the process of enhancing an employee's future value".

Characteristics of Career Planning

The main chalacteristies of career planning arc: 1) Participative Process: Career planning is a participative process and under it, job assignments are based on merit alone. This helps to improve employee morale and productivity. 2) Involve Survey of Employee's Abilities and Attitudes: Career planning involves a survey of employee's abilities and attitudes. It becomes possible, therefore, to group together people talking on a similar wavelength and place them under supervisors who are responsive to that wavelength. This results in more homogenous or cohesive work teams. The organization can identify the employee who can be promoted from within. 3) Career planning is a process of developing human resources rather than an event. 4) It is not an end in itself but a means of managing people to obtain optimum results . 5) Career planning is a continuous process due to an ever changing environment. . 6) Basically, career planning is an individual's responsibility. But it is the responsibility of an organization to provide guidance and counseling to its employees in planning their careers and in developing and utilizing their knowledge and skills. Goals of employees should be integrated with the organizational goals

.Objectives

of Career Planning

Career planning seeks to achieve the following aims:

1) To Attract and Retain the Right Type of Persons: Career planning helps to retain hares-working and talented emplcyees. Workforce becomes more stable due to low employee turnover. The very fact that the organization provides opportunity for promotion and career progress increases the loyalty of employees. This helps to reduce the cost of hiring new people. Moreover, a unique corporate culture can develop and thrive, when people grow inside the organization. 2) To Develop an Awareness of Each Employee's Uniqueness: Career planning maps out careers of employees suitable to their ability, and their willingness to be trained and developed for higher positions. 3) To Provide Guidance and Encourage Employees: Career planning provides guidance and encourages employees to fulfill their potentials. It also identifies personal interests, abilities. Strengths and weaknesses and how they relate to careers. 4) To anticipate future Vacancies: Career planning anticipates the future vacancies that may arise due to retirement, resignation, death, etc., at managerial level. Therefore, it provides a fairly reliable guide for manpower forecasting. A forward career plan helps to avoid dislocation in managerial positions. 5) To Facilitate Expansion and Growth of Enterprise: Career planning facilitates expansion and growth of the enterprise. The employees, required to fill job vacancies in future, cin be identified. And developed in time. Through systematic career planning, jobs enlargement can be introduced to meet future needs arising from job design and technological changes. It also helps to achieve higher productivity and o.ganizational oevelopment. 6) To Utilize Managerial Talent Available at all Levels within the Organization: Career planning ensures better use of human resources through more satisfied and productive employees. It also ensures that promising persons get experiences that will equip them to reach responsibility for which they are able. 7) To integrate individual and Organizational Needs: The basic aim of career planning is integration of individual and organizational needs. Career Planning identifies positive characteristics about employees, which can harnessed for organizational development, it helps in understanding of the relationship between personality and occupational/professional goals and how they can be aligned to organizational mission and objectives. 8) To Improve Employee Morale and Motivation: Career planning improves employee morale and motivation by matching skills to job requirements and by providing opportunities for promotion.

Need for Career Planning Career Planning is necessary due to the following
reasons: 1) To attract competent persons and to retain them in the organization.

2) To provide suitable promotional opportunities. 3) To enable the employees to develop and take they ready to meet the future challenges, 4) To increase the utilization of managerial reserves within an organization. 5) To correct employee placement. 6) To reduce employee dissatisfaction and turnover. , 7) To improve motivation and morale. , Pre-requisites for the Success of Career Planning I) Strong commitment of the top management in career planning, succession planning and development. 2) Organization should develop, expand and diversify its activities at a phased manner.

Career Planning Process

Career planning process involves the following steps : I) Identificaticm of individual needs and aspirations. 2) Identification of organizational needs and opportunities 3) Assessment of individual strengths and weaknesses. 4) Placement on career path. 5) Review of career plans. Let us see what functions are involved in each of these steps: 1) Identification of Individual Needs and Aspirations: When an individual joins an Organization as an employee, he does it to satisfy his own needs and fulfill his aspirations. From the individual side, generally, personalizing process works with a much greater force. The personalizing process is defined as the process through which an individual actualizes himself by making the organization as its agent. By actualizing. here, means fulfilling the goals of life, that is, fulfilling needs and aspirations which may be expressed in many forms; such as earning more money, achieving status viewed highly by the society, challenging jobs, higher responsibility, career progression, and so on. Career planning meant for an individual should aim at providing such a satisfaction. Therefore, identification of these needs and aspirations may be taken as a starting point from the view of an individual. 2) Identification of Organizational Needs and Opportunities: When individuals emphasize personalizing process, an organization emphasizes socializing process. Socializing process is that by which an organization makes individuals agents for achieving its own objectives. Thus, while going through career. planning process, the organization is concerned with own needs and the opportunities that it can provide to individual employees.- If an organization prepares its long-term human resource plan, it will come to know what kind of opportunities it can provide to employees. Therefore, the organization may

not be in a position to provide career desired and demanded by evety individual in the organization. This phenomenon may be delirious to both the organization and individuals. However, much impact of this phenomenon can be overcome at the stage of employee recruitment and selection where emphasis can be placed on matching between individual needs and aspirations and organizational needs and opportunities. The nature of organizational jobs are changing fast in which people have to match jobs with their multi-skilling rather than matching jobs with individuals. .

3) Assessment of Individual Strengths and Weaknesses: Before finalizing career plan for an individual and placing him on career path, it is necessary to assess his strengths and weaknesses. Every individual has certain strengths and weaknesses. Strength is a feature of an individual that helps him in achieving his life's goals (in the context of work-life, career goals). A weakness is a feature that *produces hindrance in achieving life's goals. A paradox with the most people is that their own aspirations do not *match with their own strengths; often aspirations are over-emphasized in relation to strengths. Therefore, there is a need for objective assessment of individual strengths and weaknesses in the light of organizational needs and opportunities. While assessing strengths, it should be borne in mind that strengths are not fixed features but go on changing over the period of time because of continuous learning. Therefore, strengths should be assessed both in terms of present and potential (it, terms of learaability and motivation to learn).

4) Placement on Career Path: The next step of career planning process is to place an individual on a chosen career path. A career path is the logical possible seqtrence of positions that could be held by an individual based on how he performs in the organization. Career path consists of two elements: line and ladder. Line is the field of specialty in which an individual is placed like production, marketing, finance, human resource, etc. Within each line, there are various positions arranged in hierarchical order. Placing an individual on a career path indicates how the individual will progress to those positions. This placing is essentially determined by the alignment of individual needs, his strengths and weaknesses, and organizational opportunities. Thus, a career plan emerges for each employee of the organization.

5) Review of Career Plans: Career pians, emerging out of career placating exercise, have long-term orientation. A career plan is developed based on assumptions about how the enviconment relevant to human resource management will behave in future. Hbwever, whatever the techniques for forecasting HRM etWirOutocut are used, such a forecast not always match with the actual eneironmental happenings. With the result, the career plans may be disturbed. Therefore, there must be in-built

system of reviewing the career plans periodically in the carter planning it. A periodic review of career plans is necessary to know whether the career plans are contributing to the eactine utilization of human resources by matching' employee needs and job needs. Review wills also ertable the employees to know; in which direction the organization is moving, what changes are likely to take place, and what skills are needed to adapt to the organizational needs. In reviewing the career plans, the following questions may he asked: i) Are the projected human resource needs and availability relevant? ii) Are the job classifications and descriptions valid? iii) Are career development programmes effective in the new situation? iv) Are the career paths set for different categories of employees working effectively? Answers of all these questions will indicate what kind of changes should be made in the existing career plans. Thus, review of the career plans may induce those responsible for career planning to take a fresh and more realistic view of career planning?

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Career Development
According to Pietrofesa and Splete, "Career Development is an on-going process that occurs over the iife span; includes home, school, and community experiences". According to Gysbers and Moore, "Career Development is self-development over the life span through the integration of the roles, settings, and events of a person's life". According to Reardon, Len; Sampson, and Peterson; Seats, "Career Development is total constellation of economic, sociologicai, psychological, educational, physical, and chance factors that combine to shape one's career". Thus. Career Development is an ongoing and formalized effort that focuses on developing enriched and more capable employees.

Career Development
Characteristics of Career Development I) it is an ongoing process. 2) It develops and shares transferability of skills and competencies. 3) It aligns individual goals with Organizational goals for increased satisfaction of employees. 4) It helps individual to develop skills and competencies required to fulfill present and future leadership roles within an organization. 5) It strengthens professionally work culture in the organizations.

Objectives of Career Development

1) Career development creates awareness among individuals regarding career, self development, and career decision making skills.

2) It helps individuals to cope with continued changes in the world of work. 3) It helps individuals to develop a realistic attitude toward the dignity of all work and workers. 4) It helps individuals to understand their unique abilities, interests, and aptitudes. 5) It helps individuals to develop a realistic understanding of themselves in. regard to decision making and - career alternatives. 6) It provides up-to-date occupational information. 7) To provide the opportunity for individuals to become acquainted with a wide range of occupational and educational opportunities. 8) To provide information about the world of work that will assist individuals in making long-range educational and career plans. 9) It facilitates appropriate follow up of information.

Importance of Career Development

I) Helps in Develop.ing Skills and Competencies of Employees: Career development helps in developing skills and competencies of employees for initiating, expanding and managing an organization effectively with focus on real life business situation S and business practices. 2) Develops Entrepreneurship Spirit: Career development helps in developing entrepreneurship spirit and potential amongst the employees in order to make them successful innovators. 3) Facilitates the Acquisition of Requisites for Organizational Excellence: Career development facilitates the acquisition of requisite skills, knowledge and competencies for organizational excellence. 4) Develops and Creates Pool of Talented People: Career development helps to develop and create a pool of talented people to successfully execute the business strategies of the organization. 5) Develops a Talent Management System: Career development helps to devise and implement a talent management system in the organization. 6) Facilitate Succession Planning and Development: Career development facilitates succession planning and development to ensure long-term growth and success of the organization. . Career Development Value for the Organizational and Individual Career development has been receiving increased attention within many oiganizations. Employees have a strong desire to take control over their work lives, and are seeking both guidance and assistance from their employers. This need causes the employers to react to these situations, and the organizations are realizing that they are reliant on their human capital for growth and survival.

Many organizations are adopting career planning and development programs. These programs are designed for those who ultimately desire to improve the performance of their organization members.

Career development involves

Assisting employees to attain their career goals. As a result, organizations must be prepared to adhere to individual concerns, and provide practical solutions to accommodate such needs. Often employees feel discontent with their current position because they feel they are not able to utilize their skills and abilities to the fullest, nor do they feel that their caveers are being cultivated. In order to bridge the communication gap, managers must have an understanding of how employees mature and gain experience in their positions, and how unique concerns and needs change over time. Career development assists individuais to attain their objectives in different stages. It acts as a roadmap and clarifies individual career paths. Furthermore, it also assists in providing performance feedback and effectiveness within an employee's position. Career development also serves other critical purposes for an organization. For example, it helps to reduce employee turnover and increases one's commitment to their role. It can assist employees to achieve their own objectives and integrate them to the overall corporate direction. Thus, career development adds value to both the employee and the organization.

Steps Involved in Career Development System T

Here are four steps in establishing a career development system. They are: 1) Needs: Defining the present system i.e. this step involves in the conducting a needs assessment as in a training programme. 2) Vision: The needs of the career system must be linked with the interventions. An ideal career development system known as the vision links the needs with the interventions. 3) Action Plan: An action plan shoOld be formulated in order to achieve the vision. The support of the top management should be obtained in this process. 4) Results: Career development programme should he integrated with the organization's on-going employee training and management development programmes. The programme should be evaluated from time to time in order to revise the programme.

PROMOTION Meaning and Definition of Promotion When there are vacancies in an organization, they can be filled up by the internal employees or external candidates. Though the organization prefers to fill up the vacancies by the external candidates through the selection procedure, the intemal candidates may- also apply for the post- and may be tested and selected for higher level job in the organizational hierarchy at par with external candidates. Is such upward movement of an employee a promotion? Or is it purely selection? It is purely a selection. If the organization prefers to fill a. vacancy only by the internal candidates, it assigns that higher level job to the selected employee front within through promotional tests. Such upward movement can be said as promotion.

According to Paul Pigore and Charles A. Myers, "Promotion is advancement of an employee to a better job better in ter ms of greater responsibility, more prestige or status, greater skill and especially increased rate of pay or salary."

According to Arun Monappa and Mirza S. Saiyadain, "Promotion is the upward reassignment of an individual in all organization's hierarchy, accompanied by increased responsibilities, enhanced status and usually with increased income though not always so."

According to Yoder, "Promotion provides incentives to initiative, enterprise and ambition; minimizes and unrest; attracts capable individuals; necessitates logical training for advancement and forms an effective reward for loyalty and cooperation, long service etc

Purposes of Promotion Organizations promote the employees with a view to achieve the following purposes: 1) To utilize the employee skill, knowledge at the appropriate level in the organizational hierarchy resulting in organizational effectiveness and employee satisfaction. 2) To develop competitive spirit and inculcate the zeal in the employees to acquire the skill, knowledge etc. required by higher-level jobs. 3) To develop competent internal source 'of employees ready to take up jobs at higher levels in the changing environment.

4) To promote employee self-development and make them await their turn of promotions. It reduces labor turnover. 5) To promote a feeling of conterdwith the existing conditions of the company and a sense of belongingness. 6) To promote interest in training, development programmes and in team development areas. 7) To build loyalty and to boost morale. 8) To reward committed and loyal employees. 9) To get rid of the problems created by the leaders of workers' unions by promoting them to the officers levels where they are less effective in creating problems. Principles of Promotion In every organization there should be a sound base for promotion so that better industrial relations may be promoted; it is the responsibility of the personnel department of the organization to develop a sound promotion policy as a part of the organization personnel policy. It will reduce the personnel problems regarding promotions considerably and ensure the employees .fair chances of advancement. A sound .promotion policy should be based on the following principles. 1) The promotion policy should be in writing and must be understood by all employees. To avoid any suspicion regarding line of promotion in the minds of employee's. 2) The promotion policy should lay down what percentages of vacancies in higher levels of hierarchy arc to be filled up by promotion and it should be followed strictly. It is better to incorporate a statement of management intention that higher paid and better jobs will be filled by promotion from within, if possible, rather than by hiring from outside. If it is necessary to go outside to fill specific skilled or professional jobs, it should be notified in advance. 3) The promotion policy should mention the basis of promotion-seniority or merit. .A sound policy should be based on both the considerations, i.e., seniority and ability. Primarily it would emphasis the merit giving due weightage to seniority. If two persons are equal in merit and seniority, seniority should be the basis of promotion. 4) Job analysis decides the position of the jobs and their relationship to other positions. This should be charted to provide clear recognition of the natural movement from one job to another: Positions may be adjusted and arranged so that one position prepares workers for another and natural course of advancement throughout the organization or within each division or department may be provided. Employees should be fully aware of the plan so that they may prepare themselves for higher position. 5) Promotion programmes should be closely allied to training programme; which enables the employees to improve themselves for promotions.

6) A scientific procedure for evaluating employee performance should be followed. The assessment of employee and confidential reporting should be objective so that every employee has a faith in the promotion policy and is motivated for better performance of work to get promotion. 7) The supervisor or the immediate boss should recommend the promotion which is subject to approval by his immediate superior in the line. Final decision in this respect should be taken by the top executive in line with the advice and assistance of the personnel department in a staff capacity. This serves as a check on the fairness of promotion and ensures that the policy will be consistently administered. 8) The promotion policy should contain a provision for the challenge of a particular promotion by the employee or union within the limits of the promotion policy to ensure fairness in management decision. , 9) A vacancy or would be a vacancy should be notified to employees in advance so that interested employees may apply within a. specified period. If possible, the candidate should be selected before the job actuall becomes vacant. . 10) The promotiou, at first, should be made on probation. If he works satisfactorily during probation period, he should be made permanent. 11) Not all people within an organization want promotion because some feel that they will leave a congenial work group or they will not be able to handle the responsibilities of higher job or they may have certain other reasons. Promotion should not be forced on such employees. . Types of Promotion A promotion involves increase in status and responsibility and pay. Increase in these elements may be in varying proportion in different types of promotion. Let us see what these types are: 1) Horizontal Promotion: This type of promotion involves an increase in responsibility and pay with the change in the designation. However, the job classification remains the same. For example, a lowerdivision clerk is promoted as higher-division clerk. In such a case, the position of the employee concemed has been upgraded with some pay increase but the nature of his job remains the same. This is known as upgradation - of an employee. In universities and other academic institutions, the system of this type of promotion is in the form of lecturer-senior ledturer-selection grade lecturer, etc

. 2) Vertical Promotion: Most of the tifne, when we refer the term promotion, we refer in this context. In vertical promotion; there is a change in the status, responsibilities, job classification, and pay. For example, a production superintendent is promoted as production manager. Sometimes, this type of promotion changes the nature of job completely, for example, a functional head is prcmoted as chief executive of the organization. The jobs involved at these two positions are completely different.

3) Dry Promotion: Dry promotion refers to increase in responsibilities and status without any increase in pay or other financial benefits. For example, a Professor in a university becomes Head of the Department. It is just an elevation of the Professor without any increase in financial benefits. ,

Transfer According to Edwin B. Flippo, "Transfer is change in job where the new job is substantially thecqUal old in terms of pay, status and responsibilities". Reasons of Transfer. Transfers are generally affected to build up"a more satisfactory work team and to achieve the following purposes'. I) To Meet Oeganizatio.nal Requirements: To satisfy such needs of an organization as may arise out of dthe change in the quantity of production, et.o. In the organizational structure; the here production, the dropping of existing product lines, the' reallocation of, or reduction in the workierce due to a shortage or a surplus in same section so that lay-offs may be avoided. filling in off the vacancies which may occur because of separations or because of the need for suitable adjustments in business operations. Such transfers are known as production transfers, flexibility transfers, or organizational transfers. The purpose, of such transfers is to stabilize employment in an organization. They are generally controlled centrally through and by the personnel department. 2) To Meet Employee's Request: To meet an employee's own request, when he feels uncomfortable on the job because of his dislike of his boss, or his fellow workers, or because better opportunities for his future advancement do not exist there, or because of family circumstances which may compel him to change the. Place of his residence. Such transfers generally have their root in faulty selection and erroneous placement, ant: are known as personal transfers. They enable employees feel at home in the work of their choice. 3) To Increase Productivity of Employee's: To utilize properly the services of an employee when he is not performing satisfactorily and adequately and when the management feels that he may be more useful or. Suitable elsewhere, lettere his capacities would be better utilized. Such transfers are called remedial transfers. They act as a follow-up measure of the selection-and-piacement procedure and help employee; to adenst themselves to suitable jobs. 4) To Make Employee's More Versatile: To increase the versatility of the employee, by shifting him from one job to another so that hp. may have ample opportunities for gaining a varied and broader experience of work. Such transfers areitnown as versatility transfers. They make it possible for an employee to enjoy the facility of job enrichment, which in turn gives to the management a more effective and experienced employee for a higher job.

'5) Adjusting the Work Force: To adjust the workforce of one plant with that of another, particularly when e one is closed down for reasons beyond the control of the employer. Such transfers are known as plant transfers and are generally affected on humanitarian grounds to ensure that persons who have been long in service of an organization are not thrown out of employment. 6) To Give Relief to an-Old Employee: To replace a new employee by an employee who has been in the vorganization for a sufficiently long time. Such transfers are known as replacement transfers, the purpose being to give some relief to an old employee from the heavy pressure of work. 7) Adjusting the Employee's Timing: To help employees work according to their convenience as far as timings are concerned; of example. An employee is transferred from night shift to morning shift or from the first to the second shift (as in the case of women workers who may like to look- after their children and do the necessary domestic work in the morning hours). Such transfers are known as shift transfers. 8) Penalizing Employee's: To penalize the employee transfers are also done, under which either a difficult trade union activist or sea lawyer may be transferred to a remote branch or office where he cannot continue his activities. In Government organizations, this practice is widespread, and is also preferred by the employee to the grim alternative of disciplinary action. 9) Maintenance of It Tenure System: Transfer for the maintenance of a tenure system. In senior administrative services of the Government and also in industries, or where there is a system of annual intake of management trainees such transfers are common. Here the employee holds a certain job for a fixed tenure but he is made to. move from job to job with a view to enabling him to acquire a variety of experience and skills and also to ensure that he does not get involved in politicking informal groups... Principles of Transfer In formulating the transfer policy following principles should be followed: I) it should be in writing and be made known to all the employees of the organization. 2) The policy should clearly state the types of transfers and the circumstances under which transfers will be made. 3) The policy should also mention the basis for or grounds of transfers. 4) The policy should indicate the authority its some officer who will be responsible for initiating and implementing transfers. 5) The policy should specify tnc units or areas over which transfer would take place. 6) The policy should also speed: Inc rate of pay to be given to the transferee. 7), the policy should ensure that Met of transfer wtruld be intimated to the person concerned well in advance. 8) It should be mentioned whether an employee will retain the seniority at his credit permanently or for a temporary period or lose it altogether.

9) It should be prescribed in the policy whether the training or retraining is required on the new job. 10) Themolicy should ensure that transfers should not be made frequently and not for the sake of transfer only. As transfers from the factory to the head office and vice versa involve a considerable change in the working conditions as well as costs to the company, they are generally discouraged. They are allowed only where found necessary due to' the exigencies of the work. In case of such a transfer, advance notice is given to the employee. In case of such transfers also, no change is made in the salary. Types of Transfer. .1) On the Basis of Purpose i) Production Transfers: These transfers are made from one department where the labor requirements are generally reduced to departments where labor needs are increasing or vacancies have occurred through separations. Such production transfers are made to prevent lay-offs. It is meaningless to have in the same organization lay-offs on one job and employees being needed in another department for a similar type of work. Thus, production transfers, at about the same occupational level, help to stabilize employment jn an organization and therefore need some form of centralized control, say through the Personnel Dep;rtment. Sometimes, production transfers may involve downgrading, being transferred to less skilled jobs. Although it is called production transfer, similar situations can also exist in non-manufacturing enterprises or divisions where an employee is transferred from one department to another for similar reasons. . ii) Replacement Transfers: From the viewpoint of purpose, replacement transfers are similar to production transfers as they also try to avoid lay-offs. Replacement transfers are used, however, to replace a new employee with an employee who lsas been in the organization for a long time.

iii) Shift Transfers: This is a common type of transfer of an employee from one shift to another on the t, same type of work. Workers generally dislike a second shift assignment as it affects their participation ==================================================================================