ASSIGNMENT

EMPLOYEE RELATIONS MANAGEMENT

Q1.

Define Strategy. Describe the different strategy levels in an organization?.

Ans. Johnson and Scholes define strategy as The direction and scope of an
organisation over the long-term; which achieves advantages for the organisation
through its configuration of resources within a changing environment, to meet the needs
of markets and to fulfil stakeholders expectations.1
Different Strategy Levels in an Organisation Organisations have different levels of
strategic decision making. Although these levels are inter-related, each one of them has
its own scope and reach. The different levels of strategy in an organisation are at the
corporate level, business-unit level, functional level and people level.
Corporate level strategy Corporate level strategy is usually devised at the
board level. It defines the following for an organisation:
The overall mission
The game plan
The management of the business portfolio
The priorities of each business unit regarding resource allocation
The structuring of the business
The methods of financing the business
The alliances to be made
The acquisitions/mergers to be performed.

Business-unit level strategy

Business-unit level strategy is mainly
concerned with how the organisation gains advantage over its competitors. It
deals with the following:
The methods the organisation uses to compete in

particular markets

The new opportunities that the organisation identifies or creates

The products or services to develop

The customers that the organisation targets.

Functional level strategy Functional level strategy is concerned with how
different units of the business (marketing, finance, manufacturing, personnel)
transform corporate and business level strategies into operational goals.
According to Johnson and Scholes, functional strategy describes how the
component parts of an organisation in terms of resources, processes, people and
their skills are pulled together to form a strategic architecture, which will
effectively define the avenue. 2
People strategy People strategy aims to match the activities of an organisation
with its human resources. An effective strategy for people management is vital to
the success of an organisation. Research carried out by the Institute of Work
Psychology and the Centre for Economic Performance shows a clear link
between the adoption of good human resource business practices and improved
performance. The research proves that focussing on key people management
issues will improve productivity and profitability.

Q2. Define Organizational Culture. Discuss the dimensions of organizational

culture. Explain Charles Handys classification of organizational culture?.
Ans. Organisational culture describes the psychology, attitude, experiences, beliefs
and values of an organisation. According to Hill and Gareth (2001), organisational
culture is defined as the specific collection of values and norms that are shared by
people and groups in an organisation and that control the way they interact with each
other and with stakeholders outside the organisation.4 An organisation is said to have a
strong culture if its employees are aligned with the organisational values. Organisations
that have a strong culture function efficiently. On the other hand, in organisations that
have a weak culture, the employees are not aligned with the organisational values and
control has to be exercised through extensive procedures and rules.
The different dimensions of organisational culture are as follows:
Power distance: This is the degree to which there are differences in levels of
power. A high degree indicates that some individuals have more power than
others. A low score shows that people have more or less equal rights.
Risk avoidance: It reflects how the much organisation is willing to take risks.
Individualism versus collectivism: Individualism refers to the extent to which
people stand up for themselves. Collectivism refers to the interdependence of
individuals in a group.

Gender differences: It concerns the traditionally accepted male and female

values. For example, male values include competitiveness, assertiveness and
ambition.
Long- versus short-term orientation: Perseverance is emphasised in longterm orientation while immediate profits are emphasised in short-term orientation.
Charles Handys classification:
culture as follows:

Charles Handy (1972) classified organisational

Power culture: Power lies in the hands of a few people. Few rules and a little
bureaucracy are present, but decisions are quickly taken.
Role culture: A highly defined hierarchical structure is present. The position
decides the power wielded.
Task culture: Teams are formed to solve problems. Expertise of a person
decides the power of the individual. Such organisations have a matrix structure.
Person culture: Every individual believes that they are superior to the
organisation. Such organisations cannot succeed.

Q3. Define Disciplinary procedure. Explain the various factors to be considered

while analyzing a disciplinary problem?.
Ans. Disciplinary procedure is a step-by-step process which an organisation follows
while dealing with indiscipline of any kind. It is a good practice for organisations to
establish a proper disciplinary procedure in order to ensure just decisions. A disciplinary
procedure includes a formal system of documented warnings and hearings, with rights
of representation and appeal at each stage. Disciplinary procedures have to be fair and
transparent in order to avoid legal complications. Caution has to be taken as disciplinary
procedures have to be directed against the employees behaviour rather than the
employee themselves.
Factors analyzing a disciplinary problem
(a) Seriousness of the problem: Consider the severity of the problem.
Insubordination is more severe than reporting late to work.
(b) Duration of the problem: Analyse if there have been any past violations and the
period over which it is happening. First-time violations are dealt with in a different
manner compared to violations which have been repeated for the third time.
(c) Frequency of the problem: Examine if the current problem is a part of a pattern
of disciplinary infractions. Continual violations require more severe punishments.

(d) Extenuating circumstances: Examine if there are any external factors which
are leading to the indiscipline. Reporting late to work due to the illness of a family
member has to be dealt with more leniently than reporting late to work because
of oversleeping.
(e) Degree of familiarisation: Find if the employee causing the problem has been
familiarised with the rules and procedures of the organisation. Consider if the
violator knows the organisational standards of acceptable behaviour.
Organisations that have formalised written disciplinary rules are more justified in
enforcing discipline than organisations that only have informal and unwritten
rules.
(f) History of the organisations disciplining practices: Find how similar
misconducts have been dealt with in the past. Find out if the organisation has
consistent disciplining practices. Impartial treatment of violations requires certain
benchmarks.
(g) Management backing: Ensure that the higher authorities back the disciplinary
process. Disciplinary actions are not effective if they are over-ridden by the upper
levels of the management.
Q4. What do you mean by Human Resource Information System (HRIS)?
Describe the various modules of HRIS. Discuss some of the HRIS software.
Ans. Human Resource Information Systems (HRIS) is a software application that
caters to the human resource information needs of an organisation like monitoring
employee attendance, payroll and benefits administration, career development,
employee information, performance management, and training. HRIS is a collection of
components which work together to gather, process and store information that the HR
department can use to make decisions, to coordinate and to plan its activities. HRIS
facilitates easy access and management of employee-related information.
Modules Of HRIS
Payroll: This module of HRIS keeps track of the pay grades and positions of the
employees. Pay raise details are also recorded. This module gathers information on
employee time and attendance. It calculates the deductions and taxes and generates
pay slips and tax reports. Cheques get automatically deposited in the employee bank
accounts. Inputs for this module are obtained from HR and time-keeping modules. This
module integrates with the current financial systems of the organisation.
Benefits administration: This module tracks and administers employee benefit
programmes. The benefit programmes include insurance, reimbursements, profit
sharing and pension programmes.

HR management: This module covers many HR aspects, ranging from employee

recruitment to retirement. It records employee details like addresses, training
programmes undergone, skills, position and so on. The functions addressed by this
module are recruitment, placement, evaluation and career development of the
employees. Job sites on the Internet are increasingly being used for recruitment. This
module tracks job applications. Interviews and selection details are also maintained.
Training: This module administers and tracks employee training and development
programmes. Records of employee education, qualification, and skills are maintained. It
also outlines the training courses and training materials (CDs, books, web-based
learning programmes, etc), which help employees develop their skills. Courses can be
planned and scheduled using the data stored. Managers can approve training and
budgets.
Performance appraisal: This module evaluates the job performance of employees in
terms of quality, time and cost. This helps in analysis of employee strengths and
weaknesses and suitability for promotions. It gives feedback to employees on
performances and identifies employee training needs. It also documents criteria which
can be used for organisational rewards.
EXAMPLES
Sage Abra HRIS: It has modules for benefits enrollment, benefits messenger,
recruitment, employee self-service, payroll, HR features and training features. It
simplifies routine employee management tasks, ensures compliance with government
regulations, keeps track of employee attendance, makes recruitment more effective,
automates employee training and updates employees on benefit programmes.
Oracle HRMS: This has different modules for HR, payroll, training administration and
time management. Oracle HRMS supports application processing, employee profiling,
career development, and management of compensation and benefit plans.
SAP HR: This has modules for personnel administration, recruitment, training, time
management, payroll, compensation management, budget management, travel
management and personnel development.
Q5. As an HR of a Company, you are asked to focus on the causes of
Grievance and the Grievance handling procedure. What according to you are the
reasons of Grievance? Explain the pre-requisites you will consider while
addressing Grievance handling procedure?.
Ans.

Causes of employee grievances.

Economic: Issues related to wages like wage calculation, overtime, and bonus.
Employees often feel that they earn less than what they deserve.
Working environment: Issues related to the employees work environment like poor
working conditions, defective equipment and machinery, tools, materials.
Supervision: Issues like behaviour of the boss towards the employee, perceived ideas
of partiality, discrimination, preferential treatment, prejudice. Work group: Issues with
co-workers like stressed peer relations or inaptness with peers.
Work organisation: Issues related to the organisation like rigid and unfair rules and
lack of recognition.
Essential Pre-requisites of Grievance Redressal Procedure
Conformity with statutory provisions: Due thought must be given to the laws of the
land while formulating the grievance handling procedure.
Clarity: Every aspect of the grievance handling procedure has to be clear and
definite. All employees have to know whom to approach first when they have a
grievance, whether the grievance is to be written or oral, and the maximum time in
which the redressal is guaranteed. The redressing spokesperson also has to know the
limits within which the employee can take the required action.
Simplicity: The grievance handling procedure has to be simple and short. If the
procedure is complex it may discourage employees and they may fail to make use of it
in a proper manner.
Promptness: The grievance of the employee has to be quickly handled and essential
action must be taken at once. This is good for both the employee and the management
because if action is delayed or deferred, it may affect the confidence of other employees
as well.
Training: The manager and the union representatives need appropriate training in all
matters of grievance handling so that no complications arise during the grievance
handling process.
Follow-up: The personnel department needs to keep track of the efficiency and the
performance of the grievance handling process and make necessary changes to
improve it with time.

Q6.

Write a brief note on the following:

(a) Trait theory
(b) ERG theory

Ans. Trait theory The Trait Theory: This theory uses traits (characteristics) to
distinguish between leaders and non-leaders. The traits associated with leadership The
traits that indicate strong leadership are as follows:
Intelligence: This refers to the mental ability of a person and is only a moderate
predictor of leadership. The Intelligence Quotient (IQ) of a person can be used as a
qualifier for high management jobs, but once the high position is attained, an effective
leader also displays good levels of Emotional Intelligence (EI). EI helps a leader to
empathise with the emotions of others. Many people feel that Carly Fiorina, the ousted
leader of Hewlett-Packard, had a high IQ, but a low empathy for the people around her
and ignored the human aspects of her decisions.
Extraversion: Extraverts have higher social and interpersonal skills. They are more
energetic, assertive and self-confident. As extraverts are more dominant, they emerge
as natural leaders. For example, Steve Ballmer, the CEO of Microsoft, is an extraverted
leader.
Conscientiousness: Conscientious people are organised, dependable, systematic,
punctual and achievement oriented. They take initiative and are persistent in all they do.
Openness: People who are open to new ideas and try new things become effective
leaders.
Self-esteem: People with good self-esteem assess their worth and capabilities in a
more positive manner. Leaders with high self-esteem are more supportive to their
subordinates. People with higher self-esteem are more confident and have greater
charisma.
Integrity: Effective leaders display honesty and integrity. Such leaders are more
trustworthy.
ERG Theory.
To bring Maslows need hierarchy theory of motivation in synchronisation with empirical
research, Clayton Alderfer redefined it in his own terms. His theory is called the ERG
theory of motivation. He re-categorised Maslows hierarchy of needs into three simpler
and broader classes of needs:
Existence needs: These include need for basic material necessities. In short, it
includes an individuals physiological and physical safety needs.

Relatedness needs: These include the aspirations individuals have for maintaining
significant interpersonal relationships (be it with family, peers or superiors), getting
public fame and recognition. Maslows social needs and external component of esteem
needs fall under this class of need.
Growth needs: These include need for self-development and personal growth and
advancement. Maslows self-actualisation needs and intrinsic component of esteem
needs fall under this category of need.