Management Case Study

Module-06

Employee Relations

Prepared By

W A H C Leelarathne

PQHRM 50/31

Course: Professional Qualification in Human Resource Management

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Contents

1. Acknowledgement

2. Introduction

3. ABC Perera Company PVT Ltd.

a) Evaluate the policy of grievance handling being applied by the company.

Suggest an appropriate policy and procedure of grievance handling for the
company.

b) Assume that the tread union enters a collective agreement with the management
which provide for 20% wages increase and the management decided to grant
these benefits only to 107 workers who are members of the union. Do you agree
with the decision or not? Why?

c) To reduce the above worker entrusts as a HR and Admin manager what type of
action plan that you going to implement?

Acknowledgement
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The authors would like to acknowledge the generous support and cooperation to complete
this assignment.

Authors also take this opportunity to appreciate their case study lecturer Mr. Asoka
Weerakoon for the guidance and support to complete the report.

Authors would like to thank their institute IPM, by providing enough library facilities in
order to refer books to successfully carry out this assignment.

2) Introduction
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When we think about it, the success of many facets of your business can often be traced
back to motivated employees. From productivity and profitability to recruiting and
retention, hardworking and happy employees lead to growth and success.

Unfortunately, motivating people is far from an exact science. There's no secret formula,
no set strategy, no check list to fill out. In fact, motivation can be as individual as the
personalities of the employees who work for you. One employee may be motivated only
by money. Another may appreciate a simple “thank you” for a job well done. Still others
may work harder if they have equity in the business.

We can boil down employee motivation improvement to two basic actions -- finding out
what your employees want and finding a way to give it to them or enable them to earn it.
The following includes more insight and some interesting and helpful motivational
techniques used by successful CEOs.

One-on-one Approach-As CEO’s, business owners and managers we often make

decisions based on what we think (our experience) or feel (our mood). When we do this
with decisions about employees and motivating them, we will most likely be more wrong
than right. Therefore we need to adopt a one-on-one approach to our employee
motivation planning and actions. Picking one plan of attack or approach for all
employees simply won’t bring results.

What is Employee Relations?

Employee Relations involves the body of work concerned with maintaining employer-
employee relationships that contribute to satisfactory productivity, motivation, and
morale. Essentially, Employee Relations is concerned with preventing and resolving
problems involving individuals who arise out of or affect work situations.

Advice is provided to supervisors on how to correct poor performance and employee

misconduct. In such instances, progressive discipline and regulatory and other

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requirements must be considered in effecting disciplinary actions and in resolving
employee grievances and appeals. Information is provided to employees to promote a
better understanding of management's goals and policies. Information is also provided to
employees to assist them in correcting poor performance, on or off duty misconduct,
and/or to address personal issues that affect them in the workplace. Employees are
advised about applicable regulations, legislation, and bargaining agreements. Employees
are also advised about their grievance and appeal rights and discrimination and
whistleblower protections.

How to motivate employees

Motivating people is a very important. People cannot be motivated by others. They are
motivated from within. Leaders can however, set up an environment in which people are
able to motivate themselves.

To set up an environment that enables employees to be motivated, leaders need to

understand what the motivational needs of individuals and groups are. Determining the
“what's in it for me” for individual employees and workgroups that is consistent with
goals and strategies of the organization is the key to improving motivation for individuals
and groups of employees.

A base for understanding what motivates human beings is found in the theories by
Maslow and Herzberg.

Maslow's theory is that people are motivated by a hierarchy of needs: that hierarchy being
physiological needs, safety needs, belonging needs, esteem needs and self actualization
needs.

Physiological needs are the very basic needs such as air, water, food, sleep, shelter, etc.
Safety needs have to do with personal safety and security including job security.
Belongingness is the desire to belong to groups: clubs, work groups, religious groups,

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family, gangs, etc. There are two types of esteem needs. First is self-esteem which results
from competence or mastery of a task. Second, there's the attention and recognition that
comes from others. The need for self-actualization is "the desire to become everything
that one is capable of becoming."

Maslow's theory postulates that humans are motivated by the needs above the minimum
set of needs which are fulfilled. People who have fulfilled a particular set of needs are not
likely to be motivated by an environment which fulfils needs at lower levels. Conversely,
people are also unlikely to be motivated by an environment which fulfils needs at a much
higher level when their lower level needs have not been fulfilled.

For example, people who are struggling to cope with the basic physiological needs of
sufficient water, food and shelter are unlikely to be motivated by self actualization,
characterized by seeking knowledge and “inner peace”. Similarly, people who have a safe
home, a secure family and a healthy ego fuelled by the accumulation of material goods
are not going to be motivated by the provision of financial rewards.

Herzberg's theory is about the hygiene factors needed to stop employees from being
demotivated and the factors which, if the hygiene factors are taken care of, will provide
an environment to motivate people.

The hygiene factors included in the job environment encompass the company, its policies
and its administration, the kind of supervision which people receive while on the job,
working conditions interpersonal relations, salary, status and security. These factors do
not lead to higher levels of motivation but without them there is dissatisfaction.

Herzberg's motivation theory involves what people actually do on the job. The motivators
are achievement, recognition, growth or advancement and interest in the job.

When applying these theories, leaders must understand some of the personal
circumstances of the individuals and groups to develop the environment that allows

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individuals and groups to motivate themselves and provide an overall approach that
reinforces the desired motivation.

Understanding what employees consider to be the basic physiological needs is a starting

point. Do employees consider the basic needs to be a roof over their head and food for
their family or a house they own and a car? Is it different from one workgroup to
another? Be careful, the definition of these needs will change over time for individuals
and groups and they will not necessarily match your own definition.

In my own experience, the removal of a bonus for not hitting targets de-motivated staff
well beyond that which might be expected. In 20:20 hindsight the bonus had, over the
years, become a means by which the employees provided their basic needs of a home. It
had become part of their mortgage payments.

For employees whose basic needs are fulfilled, it may be necessary to understand whether
delegation of responsibility and authority will cater to their self esteem needs. For
example, giving them projects for which they are accountable and have the resources and
competence to complete.

Care has to be taken with processes and policies. Processes and policies which are in
contradiction of people's motivators will depress motivation. A study of Herzberg dis-
satisfiers reveals that administration and policy has the highest impact on motivation
being a dis-satisfier on 36% of occasions. However, processes and policies which
motivate individuals may not be aligned to an organization’s strategy and objectives.

Further, a robust performance management system that recognizes and rewards people in
a way that fits their motivators is necessary for developing an environment that allows
individuals and groups to motivate themselves

3) ABC Perera company PVT Ltd

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Question One
a) i) Evaluate the policy of grievance handling being applied by the company.

Mr Bimal Perera thought all the employees like him. He not has much experience. He
thought pay properly, give bonuses employee satisfied. After meantime actually Mr
Bimal perera has really effort give material resources and financial resources, not Human
resources. They not handle grievance handling procedure properly. If have proper
grievances handling procedure employees can learn more things through this.

People suffering from mental problems, but Mr Bimal only think technical problems. He
not discusses other things; only discuss how to improve production. Mr Bimal could not
discuss other things, he only discuss how to improve production. Mr Bimal not joins the
union too much. He is not a bad person. He only concentrates only operation.

He was not listening to any body. He think he always know every think. Anyone can’t
think every think with us.

When the employees working at the work place, there are occasions, where they could
become disappointed or aggrieved about managerial decisions, practices, policies, service
conditions, etc. Grievance is a wrong or hardship suffered which becomes the ground for
complaint. Grievances could be affected by the following variables such as the

 level of education

 size of enterprises and the workforce

 type of management

 culture, etc.

When an organization does not pay attention to a grievance, employees will arise against
management and demand for a solution. This can in turn, lead to a dispute. It is prudent
for an organization to set up a grievance handling procedure as its objectives are to settle
disputes, at the earliest possible stage.
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 ABC Perera and company is the Tea factory in the srilanka was founded and
developed in 1980 by the Mr.perera. Mr.Bimal Perera is the CEO of this company. He is
well qualified person and his lessons, theory what he is learned things early, he has been
used for upgrading his career life. While he studying for his diploma he worked on the
factory floor and he came across the method which could improve efficiency or
productivity. Mr.Bimal studied science subject for his higher education. When following
his diploma, Bimal had worked on almost all the machines in the factory and was
thoroughly familiar with all of the technical process of the organization.

Consider this case; Mr.Bimal tries to continue a good grievance handling procedure
for employees according to his knowledge. This company followed and open door policy
for grievance handling. But he is failed to do it successfully sometimes. Why there are
many reasons have been affected to this case. Although this organization has an open
door policy, employees don't feel it. Or else employees are not being like that. As the
Bimal thought, he believed that the employees come to his office with problems for
solving. It is wrong and hardship task. Employees are never done it so. Because it has
been a huge gap among this both parties. Otherwise there are lot of essential problems
must solve in the person of the CEO for organization survival. Therefore Mr.Bimal
shouldn't do it so but he can appoint the immediate supervisor for solving employees
matter. Furthermore Mr.Bimal do it as own his image is tarnished. Then decrease the
employee confidence about Mr.Bimal.

Mr. Bimal always gives full of priority for money and machines. Not listen about
employees burning problems. He is thinking that when machines are in good quality in an
organization improves the productivity and efficiency of employees.Mr.Bimal trained the
new employees for it and solved the technical difficulties. But sometime employees are
faced to the lot of problems. Although the top manager is better but line managers are not
supported to the employees properly. Then employees are going against their line
managers. Because machines, equipments are not only thing they are expected there are
lot of thing expect from managers as employees.

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 When the organization faced the problem, because of the employee behavior Mr.
Bimal always calling to the company accountant and marketing manager. And he asks the
reason and solution for current situation by them. They can't give the proper solution for
employees because they are not human resource managers. They are working in financial
side. They haven't sound knowledge to solve the employee matters. As they involve
solving employee matters the financial managers are unable to do their task better.

This organization has a poor middle management. They act as lethargic type in
solving employee matters. They haven't been done their task properly. Because of the
middle management don't support to the employees. If they have done their task properly
this organization may not be face the employee problems likewise. Employees are always
feeling being unfairly treated. The middle management doesn't pay attention to a
grievance, employees who working at this organization will arise against the management
and demand for the solution of their grievances. Therefore middle management should
understand these problems of employees. or else employee grievances are gone up to
industrial dispute.

Considering this all elements this organization hasn't a proper grievance

handling procedure. There are lots of mistakes their current procedure. Therefore they
should review their current process and establish the new process considering the present
situation.

a) II) Suggest an appropriate policy and procedure of grievance handling for the
company.

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 This organization has a poor grievance handling procedure. Mr.Bimal tries to
establish good open door policy in an organization but he is failed to do it because of the
lack of knowledge of employee relation and lack of qualifications for handle the
organization. This is his first appointment. So He has to do lot of thing for solving
employee burning matters and survival of organization.

First of all we should identify the need of grievance handling procedure. In that way
we should get a clearly understand about present situation of the organization. This
organization has lot of employee problems. They are always behaving boisterously till
win their demands. But employers of this organization don't know about this employee
matters. Considering this bad situation we can establish the proper grievance handling
policies to the organization. Then we can engage it to solve the employee problems.

 Open Door Policy

An open door policy means, literally, that every manager's door is open to every
employee. The purpose of an open door policy is to encourage open communication,
feedback, and discussion about any matter of importance to an employee. When a
company has an open door policy, employees are free to talk with any manager at any
time.
Following this case, as thoughts of Mr.Bimal this organization is following the good
open door policy. Although Mr.Bimal thinking likes that this organization is not act as his
wish. According to his perception, employees may inform their problem to Mr.Bimal.He
thought that this is the open door policy. But it is wrong. Hence there are lot of problems
occurred into the organization because of this reason. Because of this case Mr.Bimal
should appoint the immediate supervisor for listening employee matters. So this
supervisor should be trained for that. Through engaging this person Mr.Bimal can easily
understand about these employee problems.

 Establish the Proper Human Resource Unit and Ladder System

When the organization faces the problems, Mr.Bimal always get assistance from
Accountant and Marketing manager. These problems are occurred due to poor employee
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relations so how financial managers are getting the best alternative solution for this case.
Both these section are variety. Considering this case, this organization hasn't a proper
Human resource unit for solving employee matters. So Mr.Bimal has to establish the
Human Resource unit for it. Human Resource managers are usually help to the
employees; listen to the employees and so on. After established the Human resource unit

Mr.Bimal can Use the ladder system to solve the grievance problems of employees.
When an employee has a grievance, it may refer to the immediate supervisor. If the
dissatisfaction is with the immediate supervisor, it may refer to the Line manager he may
be human resource manager. Failing which it could be referred to the Human resource
manager and may be referred to head of human resource manager, if not yet resolved, to
refer to the Top management. Using this method Mr.Bimal can easily solve these
employee problems.

 Worker Representation Meetings

If this organization adopts the worker representation meetings it helps
to find the employee problems. Because of this method number of workers represents the
all over employees and their problems in an organization. Then senior management can
identify the employee grievances and in order to resolve their problems in a speedy
manner.

 Client surveys and Grievances or Suggestion boxes

Mr.Bimal can also use the client surveys and grievance and suggestion
boxes. In the client survey the management can distributes questionnaires to the workers
to bring up their grievances where they will communicate freely as they do not have to
write their names. This is a very successful method of administering grievances in
organizations. When using this client and suggestion boxes in work place will help the
employees to bring up their grievance then and there without delay, So that the
management will handle them in a timely manner.

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Question Two
b) Assume that the tread union enters a collective agreement with the
management which provide for 20% wages increase and the management decided to
grant these benefits only to 107 workers who are members of the union. Do you
agree with the decision or not? Why?

No, if you do that they will demand more than that. The employees always try to win and
do things through union. Union is needed thing. But it is not the reason for all the
problems, every employee who are working in the company needed same benefits. If it is
not it is not a good company and the employees who working at the company always de
motivated.

We can’t pay only 107 workers. If do that things balance minded persons also try to join
the union. Then union crowd is improving. Then company can’t manage the profit to pay
all the employees.

Mr Bimal not think employees basic needs. Employees are human beings and need to
satisfy their lives giving their wanted things. Always need to treat to employees same as
possible.

Motivation is very important thing. Mr Bimal needs knowledge about human recourses
management and he need training about HUMAN RESOURSES MANAGEMENT.
Motivation is very important part of the human recourses management. The first step on
the path to growing employee motivation is finding out what each employee wants or
needs and then move on to figuring out how you can get it to them. Some of the
considerations are:

 Find out what motivates each employee

 Find out by asking each employee

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  Find out by asking employee peers what motivates the employee

 Offer what fits each employee’s wants – the menu approach

 Give employees the opportunity to earn what they want

 Be consistent in the value of what is given to each employee

 Don’t turn what employees earn into entitlements

As we saw above, each employee has different needs and wants. Here are some
examples of what we have seen.

• Provide what the employee considers interesting work

• Allow employees independence

• Assign employees to work they are best able to perform

• Set achievable goals

• Be visible to the employees so they feel they can talk to you

• Allow the employee to test-drive a new role

All of employees and every one want to do things their way. We sometimes make
unreasonable requests. We often choose to ignore the rules. Some of us even blame
other people for our mistakes. Many of us expect company entitlements without having
to earn them. The interesting thing is that these attitudes permeate the business
environment. And, when they are allowed to go unchallenged they are attitudes that in
fact cause other employee dissatisfaction and demonization.

These attitudes cause employee dissatisfaction because they are not consistently
accepted or refuted by management. So, we contend that the biggest negative impact on
employee motivation and morale is a lack of management consistency,
inspection/observation, control, and employee accountability.

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Maslow's theory postulates that humans are motivated by the needs above the minimum
set of needs which are fulfilled. People who have fulfilled a particular set of needs are not
likely to be motivated by an environment which fulfils needs at lower levels. Conversely,
people are also unlikely to be motivated by an environment which fulfils needs at a much
higher level when their lower level needs have not been fulfilled.

For example, people who are struggling to cope with the basic physiological needs of
sufficient water, food and shelter are unlikely to be motivated by self actualization,
characterized by seeking knowledge and “inner peace”. Similarly, people who have a safe
home, a secure family and a healthy ego fuelled by the accumulation of material goods
are not going to be motivated by the provision of financial rewards.

Herzberg's theory is about the hygiene factors needed to stop employees from being
demotivated and the factors which, if the hygiene factors are taken care of, will provide
an environment to motivate people.

The hygiene factors included in the job environment encompass the company, its policies
and its administration, the kind of supervision which people receive while on the job,
working conditions interpersonal relations, salary, status and security. These factors do
not lead to higher levels of motivation but without them there is dissatisfaction.

Herzberg's motivation theory involves what people actually do on the job. The motivators
are achievement, recognition, growth or advancement and interest in the job.

Mr Bimal can improve these attitudes and thereby motivate their employees by:

• Documenting clear performance expectations

• Documenting and stating clear objectives

• Providing training resources and opportunities

• Publicly recognizing good performance

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 • Being visible and accessible to employees – manage by walking around

• Showing employees they are valued

• Managing company policy consistently

• Compensating employees for exceptional performance – bonus, night-on-the-

town, weekend trip, etc.

• Disciplining or removing earned items or situations as a consequence to

employees who don’t meet company and job requirements.

To set up an environment that enables employees to be motivated, leaders need to

understand what the motivational needs of individuals and groups are.

Determining the “what's in it for me” for individual employees and workgroups that is
consistent with goals and strategies of the organization is the key to improving
motivation for individuals and groups of employees.

Question three
C) To reduce the above worker entrusts as a HR and Admin manager what type of
action plan that you going to implement?

Recruitment and selection procedures need to conduct to select good employees. Mr

Bimal always thinks he is right and his concept right, so he tries to blame union people.

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Management is the process of getting activities completed efficiently and effectively with
and through other people.Difference between personnel management and human
resources, the difference can be described as philosophical. Personnel management is
more administrative in nature, dealing with payroll, complying with employment law,
and handling related tasks.

Human resources, on the other hand, are responsible for managing a workforce as one of
the primary resources that contributes to the success of an organization. So need do
involve and understand these tasks very much.

Mr Bimal always thinks only administrative side. Human resources management is very
important and the knowledge of these sides is very important.

Human Resource Manager has the key responsibility in his contribution towards the
management of IR at National level as well as organizational level. Human Resource
manager should emphasize the need to formulate a national policy based on national
economic priorities.

Within organizations, HR managers should provide the leadership in effective

management of IR function thus facilitating achievement of corporate objectives. In the
performance of this task, HR practitioner cannot and should not deal with industrial
Relations in isolation. It has to be dealt along with other functions of Human Resource
Management, Which is "an integrated approach to managing Industrial Relations in
organizations", and HR practitioner should:

• Formula, implement and monitor HRM Systems/Strategies in regard to the

management of employees effectively in order to achieve corporate objectives.
o Define expectations during recruitment interviews, presenting the
unfavorable as well as the favorable aspects of a job in a' realistic job
preview'.

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 o Communicate in induction programmes for new starters the
organization's core values and HR procedures, indicating the standards
expected of employees in such areas as quality and customer service.
o Issue and keep up-to date employee handbooks that confirm and
reinforce the information and messages delivered in induction
programmes.
o Manage expectations by ensuring that performance management
processes are in place, which provide for the communication and
agreement of expectations as part of a continuing dialogue.
o Adopt a policy of transparency on company policies and procedures.
o Give employees a voice on matters that concern them about the
employment relationship.
o Persuade management to treat people as stakeholders, relying on
consensus and co-operation rather than control and coercion.
o Develop a climate of employee relationships which generate mutual
trust.
o Ensure that the reward system is developed and managed to achieve
fairness, equity and consistency in all aspects of pay and benefits
o Ensure through manager and team leader training that they understand
what is expected of them in maintaining a positive employment
relationship with their staff.
Assist the line management and collaborate with them in the management of their
employee effectively through a process of providing quality HR services.
Review and improve the Human Resource Management systems/strategies in order to
meet the emerging demands of a changing business environment also the valuable points.

As well as Hr manager admin manager also has more responsibilities. Both managers
combination can solve problems easily. Some of admin mangers duties are

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• arranging travel;
• organising meetings and appointments;
• delegating work and workload planning;
• ordering stationery;
• dealing with post and emails;
• writing reports;
• supervising the work of clerical and secretarial staff, monitoring the workload and
work rate;
• liaising with members of the senior management team;
• keeping personnel records;
• organising the recruitment of new staff;
• chairing meetings;
• controlling the office budget;
• dealing with complex queries and complaints on the telephone, by email and in
person;
• conducting appraisals and maintaining appraisal records;
• administering payroll systems;
• discussing problems with staff;
• dealing with a wide range of human resource issues;
• meeting with senior managers to review office performance;
• devising and conducting induction programmes;
• ordering office furniture;
• organizing office maintenance and repair work;
• supervising the implementation of new office systems;
• arranging for health and safety equipment to be tested on a regular basis;
• reviewing and updating health and safety policies.

To accomplish these tasks successfully, the HR practitioner should possess a high

degree of professionalism, determination and commitment in the discharging of his
responsibilities and do admin manager’s duties very successfully is very important.
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This is the best way to reduce the company employee’s problems as Human recourses
and admin managers.

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