UNIT - V

Human Relations
 Human Relations is an area of management
practice which is concerned with the integration
of people into a work situation in a way that
motivates them to work productively,
cooperatively and with economic, psychological
and social environment.
 Importance of Human
Relations

 Higher performance
 Optimum use of resources

 Morale justification

 Understanding of human factors

 Approaches to Human
Relations

 Negative Approach
 Natural approach

 Positive approach
 Components of Human
Relations

Work Environment Leader

Work Work Group

 Techniques of Human
Relations
 Integration

 Employee Participation
 Congenial work Environment

 Open Communication

 Adaptive Leadership

 Resolving Conflicts

 Conditioning Behavior

 Personnel Counseling
Collective Bargaining
 “Collective Bargaining refers to a process
by which Employers on one hand and
representatives of Employees on other,
attempt to arrive at agreements covering the
conditions under which employees will
contribute and be compensated for their
services.”
Types of Collective Bargaining

 Distributive Bargaining
 Integrative Bargaining

 Attitudinal Bargaining

 Intra-organizational bargaining
 Objectives of Collective
Bargaining
 To maintain cordial relations between
Employer and the employee.
 To ensure the participation of trade Unions in
industry.
 To promote Industrial democracy.

 To avoid the need for government

intervention as collective bargaining is a
Voluntary process.
Human Resource Audit
Objectives of Human Resource
Audit
 To review the system of acquiring,
developing, allocating and utilizing human
resources in the organization.
 To evaluate the extent to which line
managers have implemented the policies and
programmes
 To identify the short comings ion the
management of human resources.
 To evaluate the human resource staff.
Process of Human Resource
Audit
Scope
Approaches
Human
Resource
Functions Comparison

Outside Authority
Managerial
Compliance Human Evaluation
Resource Report
Statistical
Research

Employee Compliance
Satisfaction

MBO
Corporate
Strategy
Discipline
 “Discipline may be considered as the
force that prompts individuals or groups to
observe rules, regulations, standards and
procedures deemed necessary for an
organization.”
- Richard D. Calhoon
 Types of Discipline

 PositiveDiscipline
 Negative Discipline
 Causes of Indiscipline
 Ineffective leadership
 Lack of well defined code of conduct
 Faulty supervision
 Divide and rule policy of management
 Lack of promotional policy
 Political and trade union influence
 Low wages and poor working conditions
 Uninteresting work
 Unfair management practices
 FORMS OF DISCIPLINARY ACTION

 Oral warning
 Written warning

 Loss of privileges

 Fines

 Punitive Suspension

 Withholding of Increments

 Demotion

 Termination
 Discharge

 Dismissal
Procedure for taking Disciplinary
Actions
Preliminary Investigation

Issue of a Charge sheet

Suspension Pending Enquiry

Notice of Enquiry

Conduct of Enquiry

Recording the Findings

Awarding Punishment

Communicating Punishment
 Principles of Industrial
Discipline

 Knowledge of Rules
 Prompt Action

 Fair Action

 Well-defined procedure

 Constructive approach

 Review and Revision

 Statutory Provisions Concerning
Discipline

 Industrial Employment ( Standing Orders)

Act,1946
 The Industrial Disputes Act,1947

 The Payment of Wages Act,1936

 RED HOT-STOVE RULE

Dougles McGregor has suggested this rule to

guide managers in enforcing DISCIPLINE.
Important characteristics –
 Immediately

 Warning

 Consistent

 Impersonal

 Commensurate (intensity)
Grievances
 Grievance

“Any real or imagined feeling of personal

injustice which an employee has concerning
his employment relationship is known as the
GRIEVANCE.”
- Keith Davis
 Characteristics of Grievances
 Any form of discontent or dissatisfaction

 Dissatisfaction must be arise due to Employment and due

to personal or family problems

 May be in written or verbal form

 May be valid or invalid, legitimate or irrational, justifiable or

ridiculous

 Basically due to non fulfillment of one’s expectations from

the organization
 Forms of Grievances

 Factual

 Imaginary

 Disguised
 Causes of Grievances
 Grievances arising out of working conditions
 Grievances arising from management policy

 Grievances arising out of personal maladjustment

 Grievances arising from alleged violation of:

- The collective bargaining agreement

- Company’s rules and regulations
- Central or State laws
 Understanding Employee
Grievances

 Exitinterview
 Opinion surveys

 Gripe boxes

 Open door policy

 Observations
 Effects of Grievances

 On the Employees
 On the Managers

 On the Production
 Machinery for redressal of
Grievances
STEP IV Arbitration

STEP III Top Management Top Union Leaders

Middle Level Union

STEP IIMiddle Management Leaders

STEP IFront-line Supervisor Union Representatives

Aggrieved Employee
 Essentials of a Sound Grievance
Procedure

 Conformity with Statutory Provisions

 Acceptability

 Promptness

 Simplicity

 Training

 Follow-up
 Grievance Redressal in Indian
Industry

 The Industrial Employment ( Standing

Orders) Act,1946
 The Factories Act,1948

 The Industrial Dispute Act,1947

Employee Empowerment
 “Empowerment is any process that provides
greater authority through the sharing of relevant
information and the provision of control over
factors affecting job Performance.”
- John Newstrom and Keith Devis
 Elements of Empowerment

 Self-competence

 Meaningfulness

 Impact (Influence)
Approaches to Empowerment

 Helping employees achieve Job Mastery

 Allowing more Control

 Providing successful Role Models

 Giving more support

 Importance of Empowerment

 Knowledge Workers
 Cut throat competition

 Speed and flexibility

 Globalization
 Barriers to Empowerment

 Incongruent organizational culture

 Love for authority

 Fear of retribution by superiors

 Fear of a retribution by subordinates

 Dependency of subordinates
Participative Management
 “Participation refers to the mental and
emotional involvement of a person in a group
situation which encourages him to contribute
to group goals and share in the responsibility
of achieving them.”
- Keith Device
 Degrees of Participation

 Communication

 Consultation

 Code-termination

 Self management
 Objectives of Worker’s
Participation in management

 Economic Objective
 Social Objective

 Psychological objectives
 Importance of Worker’s
Participation in management

 Mutual understanding
 Higher productivity

 Industrial harmony

 Industrial democracy

 Less resistance to change

 Creativity and innovation

 Forms of Worker’s
Participation in management

 Suggestion schemes
 Workers committee

 Joint management council

 Worker directors

 Co-partnership
Business Ethics
Business Ethics

Guide for behavior

CORE VALUES
Transparency
Fairness
Accountability
Responsibility
Four corporate governance ethical
values (“RAFT”)
1. Responsibility
“The board should assume responsibility for the
company’s assets and actions and be willing to take
corrective actions to keep the company on its
strategic path.”
2. Accountability
“The board should be able to justify its decisions and
actions to stakeholders affected by the company and
give account to those stakeholders who require the
board to do so
3. Fairness
“In its decisions and actions, the board should ensure
that it gives fair consideration to the interests of all
stakeholders of the company.”
4. Transparency
“The board should disclose information in a manner
that enables stakeholders to make a meaningful
analysis of the company’s actions.”
“Ethics of governance” — Five ethical
duties of directors are grounded in
the four corporate governance values

1. Conscience
“A director should act with intellectual honesty in
the best interest of the company. Conflicts of interest
should be avoided. Independence of mind should
prevail to ensure the best interest of the company and
its stakeholders are served.”

2. Care
“A director should devote serious attention to the
affairs of the company. All relevant information
required for exercising effective control and providing
innovative direction to the company need to be
acquired.”
3. Competence
“A director should have the knowledge and skills
required for governing a company effectively. This
competence should be developed continuously.
Willingness to be regularly reviewed for competence is
a prerequisite.”
4. Commitment
“A director should be diligent in performing director’s
duties. Sufficient time should be devoted to company
affairs. Effort needs to be put into ensuring company
performance and conformance.”
5. Courage
“A director should have the courage to take the risks
associated with directing a successful sustainable
enterprise, but also the courage to act with integrity
in all board decisions and activities.”
 Case Study- 4
Ramesh, AGM, Materials, is fuming and fretting. He bumped
into Kailash, G.M. Materials, threw the resignation letter on his
table, shouted and walked out of the room swiftly.
Ramesh has reason for his sudden outburst. He has been
driven to the wall. Perhaps, details of the story will tell the
reasons for Ramesh’s is bill and why he put in his papers, barely
four months after he took up his present assignment.
The year was 1995 when Ramesh quite the prestigious
SAIL plant at Vishakhapatnam. As a manager material, Ramesh
engaged powers------- he could even place an order for materials
worth Rs. 25 lakh. He needed nobody’s prior approval.
Ramesh joined a pulp making plant located at Harihar in
Karnataka, as AGM Materials. The plant is a part of the
multiproduct and multi plant conglomerate owned by a
prestigious business house in India. Obviously, perks,
designation and reputation of the conglomerate hired Ramesh
away from the public sector steel monolith.
 When he joined the eucalyptus pulp making company, little
did Ramesh realize that he needed prior approval to place an
order for materials worth Rs.12 lakh. He had presumed that he
had the authority to place an order by himself worth half the
amount of what he used to do at the mega steel maker. He
placed the order; materials arrived, were received, accepted and
used up in the plant.
Trouble started when the bill for Rs. 12 lakh came from the
vendor. The accounts department withheld payment for the
reason that the bill was not endorsed by Kailash. Kailash refused
to sign of the bill as his approval was not taken by Ramesh
before placing the order.
Remesh felt fumigated and cheated. A brief encounter with
Kailash only aggravated the problem. Ramesh was curtly told
that he should have known company rules before venturing.
Remesh decided to quit.
Questions:-

1. Where have the system gone wrong?

2. Was it really Ramesh’s mistake? It so was
there any solution?
3. Does the company have an orientation
programme? If yes, how effective is it?
4. If you were Remesh what would have you
done?