HUMAN RELATIONS

MEANING OF HUMAN
RELATIONS
According to Scott, Human Relations is
a process of an effective motivation of
individuals in a given situation in order
to achieve a balance of objectives which
will yield greater human satisfaction
and help accomplish company goals.
Scope of Human Relations
Every person brings a set of talents,
ambitions and experience, matching
them to a standardised technology is a
challenge.
Organisational aspects such as size,
geographic location and degree of
automation define the scope.
Contd
Innovation in technology requires the
restructuring of job roles and responsibilities.
Promotion of individual to positions of greater
responsibility creates a need for changed
behaviour which in turn creates HR problems.
Inexperienced workers may not be able to
perform their roles or tasks in work groups in
a competent manner. This also creates
disputes between them and their co workers.
HR MOVEMENT
The Human Relations movement
became popular in the year 1940s and
early 1950s when much attention began
to be paid to the workers needs and
realising the importance of human
beings in total productivity. Hawthorne
Studies laid down the foundations of
relationship between productivity and
physical working environment.
EMPLOYEE GRIEVANCE
According to Michael J Jucious,
grievance is any discontent or
dissatisfaction, whether expressed or
not, whether valid or not, arising out of
anything connected with the company
that an employee thinks, believes or
even feels, is unfair, unjust or
inequitable.
Contd
Best approach towards grievance is to
anticipate them and take steps to tackle
them before it takes dangerous form.
An ordinary manager redresses it after
it arose but an excellent manager
anticipates it and prevents the very
occurance.
Contd
It can be known before it occurs through
several means:
Observation
Opinion Survey
Gripe Boxes: Box at prominent positions
should be kept for lodging anonymous
complaints.
Exit Interviews
Open Door Policy
Nature and Causes of
Grievances
P.C.Tripathi has broadly classified the causes
of grievance in categories :
Grievance resulting from working conditions
Grievance resulting from management policy
Grievance resulting from violation of certain
rules or agreements
Grievance resulting from personal
maladjustment.
Essentials of Sound Grievance
Handling
Conformity with prevailing legislation
Acceptability
Clarity
Promptness
Simplicity
Training
Follow up
STEPS IN GRIEVANCE
HANDLING
The Code of Discipline adopted by Indian
Labour Conference, 1957 laid down that the
management and unions should establish,
upon a mutually agreed basis, grievance
procedure which would ensure a speedy and
full investigation leading to a settlement.
The Model Grievance Procedure in India
provides for five successive time bound steps,
each leading to a next case.
Steps
Step 1: The aggrieved employee
verbally explains his grievance to his
immediate supervisor or in a conference
etc. The employee seeks satisfaction
from his supervisor, who should give his
answer within 48 hours of the
presentation of complaint.
Steps
Step 2: If the grievance is not settled
by the supervisor or if the employee is
not satisfied with the response, he can
approach the departmental head. The
head is required to submit his answer
within three days of the presentation of
grievance.
Steps
Step 3: If even now the employee is not
satisfied, may approach the grievance
committee. This committee evaluates
the case and presents its
recommendations within seven days.
Steps
Step 4: If the employee is not satisfied, may
make an appeal to the management for
revision. Management may communicate
within seven days.
Step 5: If the employee is even now
unsatisfied, may refer to grievance to
voluntary arbitration within a week of the
receipt of managements decision. The
parties may agree beforehand that the
decision of the arbitrator will be final and
binding on both the parties.
GRIEVANCE MANAGEMENT IN
INDIAN INDUSTRY
There are three legislations dealing with
grievance handling:
The Industrial Employment Act 1946
The factories Act 1948
Industrial Disputes Act 1947
Contd
The Industrial Employment (Standing
Orders) Act 1946: For establishments
employing 100 or more workers, should
have standing orders and a provision
for grievances of workers against unfair
treatment and wrongful exactions by
the employer or his agents.
Contd
Factories Act 1948: Appointment of
welfare officer in every factory
employing 500 or more workers. They
also look after complaints and
grievances of workers.
Contd
The Industrial Disputes Act 1947:
The employer in relation to every industrial establishment in
which 50 or more workmen are employed shall provide for a
grievance settlement authority.
Any member of the organisation, in case of industrial dispute
may refer such dispute to the grievance settlement
authority.
The Grievance Settlement Authority shall follow such
procedure and complete its proceedings within such periods
as may be prescribed.
No reference shall be made to Boards, Courts or Tribunals of
any dispute referred to in this section unless such dispute
has been referred to the Grievance Settlement Authority
concerned and decision of the authority is not acceptable to
any of the parties to the dispute.
DISCIPLINE
According to Richard D Calhoon,
discipline is a force that prompts
individuals or groups to observe the
rules, regulations and procedures which
are deemed to be necessary for the
effective functioning of an
organisation.
ASPECTS OF DISCIPLINE
There are two aspects Positive and
Negative.
Positive Aspect: Inherent desire of the
employee
Negative Aspect: When personnel are
forced to observe rules and regulations
on account of fear of some penalty.
OBJECTIVES OF DISCIPLINE
To gain willingly acceptance of the rules, regulations,
standards and procedures of the organisation from
the employees.
To develop the feeling of cooperation among the
workers.
To maintain good industrial relations in the
organisation.
To increase the working efficiency and morale of the
employee.
To develop a sense of tolerance and respect for
human dignity.
ESSENTIALS OF A GOOD
DISCIPLINARY SYSTEM
Knowledge of rules
Prompt action
Fair action
Well defined procedure
Constructive approach- Preventive
rather than punitive
Review and revision

The Hot Stove Rule
According to Douglas McGregor, hot
stove rule implies that if the rules and
penalties are clear and well understood,
a violation creates some natural
consequences, just as touching the hot
stove has.
Immediate: Disciplinary action should
be taken immediately.
Contd
Warning: He should have a warning which
should clearly communicate that what will
happen if he does not abide by the rules.
Consistent: Everyone who commits similar
mistake will be dealt with in a same manner.
Impersonal: A person should be punished for
any wrong committed, without any bias of
who he is.
Commensurate: A person who repeatedly
touches the hot stove burns his hands as
many times, similar with misconducts.
Code of Discipline
Formulated after a great deal of discussion and
recommendation of the Indian Labour Conference (15
th

session), held in July 1957.
Following are the Principles:
There should be no lockouts or strikes before notice
No unilateral action should be taken in connection with any
industrial matter
No deliberate damage should be done to plant or property
The existing machinery for the settlement of disputes should be
utilised
Acts of violence, coercion, intimidation etc should not be indulged
in
Awards and agreements which may destroy cordial industrial
relations may be avoided.
KINDS OF
PUNISHMENT/PENALTIES
Minor Penalties:
Oral reprimand (warning): Mildest of all
disciplinary actions.
Written reprimand: If the worker continues
with the misconduct, it is done to bring
into record the misconduct.
Loss of Priviledge: Certain priviledges like
good job assignments, freedom of
movement etc are withdrawn.
Contd
Fines
Punitive Suspension
Major Penalties: For major offences.
With holding of increments
Demotion
Discharge
Dismissal
PROCEDURE FOR TAKING
DISCIPLINARY ACTION
Preliminary Investigation: To find out whether a
prima facie case of misconduct exists. Only if it
exists, the management should proceed further.
Issue of Chargesheet: If a prima facie case of
misconduct exists, the management should proceed
to issue a charge sheet to the worker. Following
guidelines may be followed in framing the
chargesheet:
Each charge must be clear and precise.
There should be a separate charge for each allegation.
Charges must not relate to any other matter which has been
decided upon.
Proposed punishment should be avoided in the chargesheet.
Contd
Suspension pending enquiry (if needed): If
the nature of misconduct is grave and if it is
in the interest of discipline and security, the
management may suspend a worker even
before the charge sheet is issued.
His pay will be:
For the first 90 days, half his wages
For the remaining period of suspension, three
fourth of his wages.
Contd
Notice of Enquiry: Following two
situations may arise:
The worker may admit the charge. In such
case the employer may award punishment
without further enquiry.
The worker may deny the charge. The
employer may hold the enquiry.
Contd
Conduct the enquiry: The enquiry officer is a
judge, so it is necessary that he must be
impartial and qualified to act in that capacity.
A fair opportunity should be given to charge
sheeted employee to examine the
management witness.
Recording of findings of Enquiry Officer: At
the conclusion of enquiry proceedings the
Enquiry officer should decide as to whether
the charges made are valid or not along with
reasons for the findings.
Contd
Awarding Punishment: This should be
communicated to the employee quickly.
The letter should contain the following:
Reference to (i) the charge sheet, (ii) the
enquiry, (iii) findings of the enquiry
Decision
Date from which the punishment is to be
effective.
ROLE OF HR MANAGER IN
MAINTAINING DISCIPLINE
Advising and assisting top line management in determining and
developing an appropriate disciplinary procedure.
Assisting in communication of the disciplinary procedure to all
employees of the organisation.
Making sure that the disciplinary procedures confirm to legal
provisions.
Ensuring fairness.
Training the supervisors and executives in dealing with
disciplinary problems and cases.
Involving the trade unions and the employees in determining
and implementing disciplinary procedures.
Developing of self discipline and self control on the part of
employees and winning over the confidence of employees in
disciplinary policies and procedures.
PRINCIPLE OF NATURAL JUSTICE
AND DOMESTIC ENQUIRY
According to it no man should be held guilty
without getting an opportunity to explain his
point of view. It states that the worker should
be given a fair chance:
To present evidence of his own choice
To cross examine the managements evidence
To explain his point of view without pressure or
fear.
PARTICIPATIVE
MANAGEMENT
Refers to the process of involving
employees or employee representatives
at all levels of the decision making
process.
Methods of Participation
Participation :
At board level
Through complete control
Through staff or works councils
Through joint councils and committees
Through collective bargaining
Through job enlargement and job enrichment
Through suggestion schemes etc.
IMPORTANCE OF
PARTICIPATION
The employees identify themselves with
work.
They feel motivated and important as
they are involved in decision making.
It reduces conflict and stress.
It results into better communication.
LIMITATIONS
Sometimes participative situations can be
used to manipulate employees by
management or trade unions.
The presence of feudalistic mindset, leads to
loss of interest on the part of workers.
The unwillingness of the employer to share
his power with the workers representatives.
EMPLOYEE EMPOWERMENT
A technique of involving employees in
their work through the process of
inclusion.
Empowerment encourages employees
to become innovators and managers by
giving them more control and
autonomous decision making
capabilities.
Contd
The characteristics of empowered organisations
are:
An assumption of competence- a belief that
people can be trusted and therefore requires
minimal checks and controls.
Learning from others.
Empowerment requires a situation of high
trust and competence.
Togetherness- regardless of status or
position.
CONDITIONS NECESSARY FOR
SUCCESS OF EMPOWERMENT
Employees must be encouraged to take
control of their work.
The environment must be receptive for
employees with innovative ideas.
Employees must have access to wide range
of information.
Empowered employees must be held
accountable for their decisions.
Culture of organisation should be open and
receptive to change.
STAGES OF EMPOWERING
PROCESS
Stage 1: Get the basics right by fully using
current capability.- Empowerment through
delegation in the current task. Managers
should be enablers.
Stage 2: Stretch people beyond their current
capability to fulfill their full potential.
Stage 3: Strengthen empowerment by
creating commitment.

COLLECTIVE BARGAINING
Term coined by Sydney and Beatric Webb.
Collective Bargaining is a method by which
the trade unions protect and improve the
conditions of their members working lives. A
process in which the representative of the
employer and of the employees meet and
attempt to negotiate a contract governing the
employer-employee union relationship.
Characteristics of Collective
Bargaining
Group Action rather than individual
action.
Flexible and Mobile rather than fixed
and static.
A bipartite process.
Continuous process.
Power relationship.
OBJECTIVES
To maintain cordial relations between
employer and employees by settling disputes
and conflicts.
Protects the interest of workers.
Resolve differences between the employer
and the employee.
Avoid the need of government intervention.
Ensure participation of trade unions.
Promote industrial democracy.
TYPES OF COLLECTIVE
BARGAINING
Conjunctive Bargaining: The employer
and the employees try to maximise
their respective gains. Issues like
wages, bonus etc. are negotiated under
conjunctive bargaining. The principle of
my gain your loss your loss my gain is
followed in it. It is also called
distributive bargaining.
Contd
Co-operative Bargaining: Both parties realise the
importance of surviving in difficult times and are
ready to negotiate the terms of employment in a
flexible way.
Productivity Bargaining: Workers wages and benefits
are linked to productivity. If they exceed the level,
they get benefit. Standard productivity is finalised
through negotiation.
Composite Bargaining: In it, labour bargains for
wages as usual but goes a step further by demanding
equity in matters relating to work norms,
employment levels, etc.
PROCESS OF COLLECTIVE
BARGAINING
The Negotiation Stage: In collective
bargaining carrying out negotiations
and reaching an agreement constitute
only half the process. The negotiation
stage is:
Identification of a problem.
Preparing for negotiations.
Negotiations of agreements.
Contd
The Stage of Contract Administration: Both
the parties should be considerate and
sensitive towards the problems of other
parties. When a solution is reached, it is put
on the paper taking the concerned legislation
into consideration. Both the concerned parties
sign the agreement, which becomes a binding
contract for both the parties. Arbitration is
the last resort.
STEPS IN THE PROCESS
Planning for negotiations
Determining the bargaining issues
Negotiation
Accomplishing the agreement
Passing the agreement
Monitoring the agreement
Contd
Planning for negotiation:
Make a detailed plan for the
modifications in the contract language.
Determine the economic package that
the company offers.
Create a bargaining book for storing all
the information related to issues.
Contd
Identifying Bargaining Issues:
Wage related
Supplementary economic benefits: Issues
such as pension plans, paid vacations etc.
Institutional Issues: Such as rights and duties
of employers, employees, unions, stock
ownership scheme etc.
Administrative issues: Issues such as
seniority, employee discipline etc.
Contd
Conducting Negotiations: Initial
demands of both employer and
employee are determined. The
negotiation process continues until the
final agreement is obtained.
Accomplishing the agreement: The next
step is to implement and achieve that
agreement.
Contd
Passing the agreement: To identify whether
or not both the issues mentioned by each
negotiating party are acceptable. In it the
union-negotiating team examines the
agreement and convert it into legal contract.
Monitoring the agreement: Post
implementation of the agreement it is
monitored that the agreement is implemented
as per the issues mentioned in it.
Recommendations of National Labour
Commission For Successful Functioning of
Collective Bargaining
Government intervention in settlement of disputes
should be reduced to minimum level.
Trade Unions should be strengthened both
organisationally and financially by amending the
Trade Union Act of 1926.
Legal provisions may be made either by a separate
legislation or by amending an existing enactment for
compulsory recognition of Trade Unions and
certification of Unions as bargaining agents,
prohibition and penalisation of unfair labour
practices, conferring legal validity and legitimacy on
collective agreement.
Contd
One union for one plant or one industry
should be popularised.
The government should declare its
policy to allow and encourage the
parties to settle their conflicts and
disputes through bipartite consultation
and negotiation.
BARGAINING ISSUES
Wages and working conditions.
Rules and regulations pertaining to work.
Incentive payments.
Job security.
Changes in technology and its impact on employees.
Transfer and promotions.
Employee benefits.
Recognition of employee unions.
Union activities and responsibilities.
Management rights.
FACTORS INHIBITING COLLECTIVE
BARGAINING IN INDIA
Weak Unions
Problems from government
Legal problems
Attitude of management
Employers uncertainty about who is the
recognised bargaining agent
Statutory fixation of conditions of work
Political interference.