Human Resource Management (CP-204)

Human Resource Management (CP 204)
STUDY MATERIALS ON
HUMAN RESOURCE MANAGEMENT

(CP 204)
INTERNATIONAL INSTITUTE OF MANAGEMENT SCIENCES CALCUTTA (Department of Distance Education)
CONTENTS
Unit 1 : Introduction Definitions Features Functions Importance Issues relating to importance Role of Human Resource Management Difference between HRM and PM Different functions of HRM Unit 2 : Human Resource Planning Methods & Techniques Unit 3 : Recruitment Definition & Meaning Objectives of Sound Recruitment Policy Unit 4 : Selection Definition Process of Selection Unit 5 : Training Concept, Meaning and Scope Training and Education An approach to learning Need for Training Stake holders in Training and their responsibilities Areas of Training Programme Factors influencing learning process Steps in Training Programme : : : : : : : 41 41 41 42 42 43 43 44 44 44 45 : : 31 31 40 : : 25 29 29 30 : 15 24 : : : : : : : : 45 5 6 6 6 10 11 12 12 13 14
3 : : 45 50 50
Methods of Training Impediments to effective training Unit 6 : The Performance Appraisal Process Methods of approval Methods of performance appraisal Performance appraisal techniques Individual evaluation methods Unit 7 : Employee Welfare, Health and Safety Working Environment Working Conditions Working life and its quality Welfare Measures Accidents Managers Responsibility Causes of Accidents in Industries Measures for Preventing Accidents Occupational Health Unit 8 : Industrial Disputes and Industrial Relations Industrial Disputes Causes, Classification Unit 9 : Industrial Relation Collective Bargaining, Workers Participation and Trade Union Representative Authority Recommendation of National Commission Labour Trade Union Objective of Trade Unions All India Trade Union Congress The Trade Unions Act, 1926 and Legal Framework Registration
: : : :
51 51 52 52 57
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58 58 60 60 60 61 62 62 63 63 64 64 67
68 74
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75 78 78 79 79 80 80 82 82 83
83 90
Unit 1 Introduction
Definitions of HRM According to Ivancevich and Glucck - "Human resource management is the function performed in organisations that facilitates the most effective use of people (employees) to achieve organisational and individual goals". Byars and Rue define HRM as - "Human resource management encompasses those activities designed to provide for and co-ordinate the human resources of an organisation" According to Wendel French- "Human resources management is the systematic planning and control of a network of fundamental organisational processes affecting and involving all organisational members. These processes include human resource planning, job and work design, job analysis, staffing, training and development, performance appraisal and review, compensation and reward, employee protection and representation and organisation improvement". According to Dale Yoder the management of human resources is viewed as a system in which participants seeks to attain both individual and group goals" According to Flippo - Human Resource Management is - "the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organisational and societal objectives are accomplished". Scott, Clothier and Spriegel have defined Human Resource Management as "that branch of management which is responsible on a staff basis for concentrating on those aspects of relationship of management to employees and employees to employees and with the development of the individual and the group. The objective is to attain maximum individual development, desirable working relationship between employers and employees and employees and employees and effective moulding of human resources as contrasted with physical resources". In the words of Michael J Jucious - "Human Resource Management -"may be defined as that field of management which has to do with planning, organising and controlling the functions of procuring, organising and controlling the functions of procuring, developing, maintaining and utilising a labour force, such that the (a) objectives for which the company is established are attained economically and effectively, (b) objectives of all levels of personnel are served to the highest possible degree; objectives of society are duly consider and served". According to National Institute of Person net Management of India - "Personnel management (or Human resource Management) is that part of management concerned with people at work and with their relationships within the organisation. It seeks to bring men and women who make up an enterprise, enabling each to make his own best contribution to its success both as an individual and as a member of a working group". Personnel management as defined by the Institute of Personnel Management in U.K (and subsequently adopted by Indian Institute of Personnel Management) is as follows: "Personnel
management is a responsibility of all those who manage people as well as being a description of the work of those who are employed as specialists. It is that part of management which is concerned with people at work and with their relationships within an enterprise. It applies not only to industry and commerce but to all fields of employment". Features of Human Resource Management On the analyses of defections of Human Resource Management, the following features of HRM can be identified. 1. People Oriented: Human Resource Management is concerned with employees both as individuals and as group in attaining goals. It is also concerned with behaviour, emotional and social aspects of personnel. It is the process of bringing people and organizations together so that the goals of each are met. 2. Comprehensive Function: Human resource Management covers all levels and categories of employees. It applies to workers, supervisors, officers, managers and other types of personnel. It covers both organised and unorganised employees. It applies to the employees in all types of organisations in the world. 3. Individual-oriented: Under human resource management, every employee is considered as an individual so as to provide services and programmes to facilitate employee satisfaction and growth. Other words, it is concerned with the development of human resources i.e., knowledge, capability, skill, potentialities and attaining and achieving employee goals. 4. Continuous Function: Human resource management is a continuous and never ending process. According to George R Terry - "it cannot be turned on and off like water from a faucet; it cannot be practiced only one hour each day or one day each week. Personnel management requires a constant alertness and awareness of human relations and their importance in everyday operations". 5. A Staff Function : Human resource management is a responsibility of all line managers and a function of staff managers in an organisation.. Human resource managers do not manufacture or sell goods but they do contribute to the success and growth of an organisation by advising the operating departments on personnel matters. 6. Pervasive Function: Human resource management is the central sub-function of an organisation and it permeates all type of functional management viz., production management, marketing management and financial management. Each and every manager is involved with human resource function. It is a responsibility of all line managers and a function of staff managers in an organisation. 7 Challenging Function: Managing of human resources is a challenging job due to the dynamic nature of people. Human resource management aims at securing unreserved co-operation from all employees in order to attain predetermined goals. Human resource management aims at assuring unreserved cooperation from all employees in order to attain predetermined goals. 8 Development-oriented: Individual employee-goals consists of job satisfaction, job-security, high salary, attractive fringe benefits, challenging work, pride, status, recognition, opportunity for development etc. Human resource management is concerned with developing potential of employees, so that maximum satisfaction from their work and give their best efforts to the organisation.
Functions of HRM HRM is a process consisting of four functions (i) Acquisition of human resources. (ii) Development of human resources. (iii) Motivation of human resources and (iv) Maintenance of human resources. (i) Acquisition Function: Acquisition process is concerned with securing and employing the people possessing required kind and level of human resources necessary to achieve the organisational objectives. The acquisition function begins with planning. It also covers the functions such as job analysis, human resource planning, recruitment, selection, placement, induction and internal mobility. (ii) Development Function: Development function is the process of improving, moulding and changing the skills, knowledge, creative ability, aptitude and values. The development function can be viewed along three dimensions (a) Employee training - Training is the process of imparting the employees the technical and operating skills and knowledge. It also includes changing of attitudes among workers. (b) Management development: - Management development is primarily concerned with knowledge acquisition and the enhancement of an executive's conceptual abilities. It is the process of designing and conducting suitable executive development programmes so as to develop the managerial and human relations skill of employees. (c) Career Development: - Career development is the continual effort to match long-term individual and organisational needs. When human resources have been developed effectively, one can expect to have competent employees with up-to-date skills and knowledge. (iii) Motivation Function: The motivation function begins with the recognition that individuals are unique and that motivation techniques must reflect the needs of each individual. It is an area of management in integrating people into work situation in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction. (iv) Maintenance Function: The maintenance function is concerned with providing those working conditions that employees believe are necessary in order to maintain their commitment to the organisation. The objective of the maintenance function is to retain people who are performing at high levels. This requires that the organisation provide safe and healthful working conditions and satisfactory labour relations. If these activities are, performed effectively, we can expect to have competent employees who are committed to the organisation and satisfied with their jobs.
Importance of HRM
In recent years there has been relative agreement among HRM specialists as to what constitutes the field of HRM. The model describing importance of HRM was developed by the American Society for Training and Development (ASTD) identifies nine human resource areas:-
1. Training and Development 2. Organisation Development 3. Organisation / Job Design 4. Human Resource Planning 5. Selection and Staffing 6. Personnel Research and Information Systems 7. Compensation / Benefits 8. Employee Assistance 9. Union Labour Relations. Training and Development Organisations and individuals should develop and progress simultaneously for their survival and attainment of mutual goals. Employee training is a specialised function and is one of the fundamental operative functions of human resource management. Training improves, changes, and moulds the employee's knowledge, skill, behaviour, aptitude and attitude towards the requirements of the job and the organisation. Training bridges the difference between job requirements and employee's present specifications. Management development is a systematic process of growth and development by which managers develop their, abilities to manage. It is a planned effort. to improve current or future managerial performance. Organisation Development . Management can effectively meet challenges of change through a systematic and planned change effort. Organisation development is the modem approach to management of change and human resource development. According to Dale S Beach organisation development is - "a complex educational strategy designed to increase organisational effectiveness and wealth through planned intervention by a consultant using theory and techniques of applied behavioural science". Organisation Development (OD) concentrates on people dimensions like norms, values, attitudes, relationships, organisational climate etc. OD efforts broadly aim at improving the organisatiol1al effectiveness and job satisfaction of the employees. These aims can be attained by humanising the organisations and encouraging the personal growth of individual employees. Organisation/Job Design Organisation design deals with structural aspects of organisations: it aims at analysing roles and relationships so that collective effort can be explicitly organised to achieve specific ends. The design process leads to development of an organisation structure consisting of units and positions. There are relationships involving exercise of authority and exchange of information between these units and positions. Michael Armstrong has defined job design -" as the process of deciding on the content of a job in terms of its duties and responsibilities; on the methods to be used in carrying out the job, in terms of techniques, systems and procedures and on the relationships that should exist between the job holder
and his superiors, subordinates and colleagues". Thus, job design is the process of determining the specific tasks and responsibilities to be carried out by each member of the organisation. It has many implications for human resources management. Both the content and one's job and the ability to influence content and level of performance affect a person's motivation and job satisfaction. Human Resource Planning Human resource planning may be defined as the process of assessing the organisation human resource needs in light of organisational goals and making plans to ensure that a competent, stable work force is employed. The efficient utilisation of organisational resources - human, Cc technological - does not just happen without the continual estimator requirements and the development of systematic strategies design goal accomplishment. -Organisational goals have meaning only, when with the appropriate talent, skill and desire is available to execute needed to realise goals. Selection and Staffing After identifying the sources of human resources, searching for p employees and stimulating - them to apply for jobs in an organistion the management has to perform the function of selecting the right employ, right time. The selection process involves judging candidates on dimensions, ranging from the concrete and measurable like years of e to the abstract and personal like leadership potential. To do this, organisation rely on one or more of a number- of selection devices, including c forms, initial interview, reference checks, tests, physical examination interviews. All selection activities, from the initial screening interview physical examination if required, exist for the purpose of making selection decisions. Each activity is a step in the process that forms a exercise - managerial decision makers seeking to predict which job applicant will be successful if hired "successful" in this case, means performing well on the criteria the organisation uses to evaluate personnel. It is important to have a goof organisation structure, but it is even more important to fill the job with the right people. Staffing includes several sub-functions:(i) Recruitment or getting applications for the job as they open up. (ii) Selection of the best qualified from those who seek the jobs. (ii) Transfers and promotions (iv) Training those who need further instruction to perform their work effectively or to qualify for promotions. Importance and need for proper staffing:- There are a number of advantages of proper and efficient staffing. These- are as under: (i) It helps in discovering talented and competent workers and developing them to move TIP the corporate ladder. (ii) It ensures greater production by putting the right man in the right job. (iii) It helps to avoid a sudden disruption of an enterprises' production run by indicating shortages of personnel, if any, in advance. (iv) It helps to prevent under-utilisation of personnel through overrunning and the resultant high labour cost and low profit margins.
(v) It provides information to management for the internal succession of managerial personnel in the event of an unanticipated turnover. Personnel Research and Information System The term research means a systematic and goal oriented investigation of facts that seeks to establish a relationship between two or more" phenomena. Research cans Idea to an increased understanding of and improvement in HRM practices. Managers make decisions and solve problems. To make decisions about personnel and to solve human resource problems,' managers gather data and draw conclusions from these data. Research can lead to an increased understanding of and improvement in HRM practices. In fact, engaging in some type of research into what is happening in the HRM discipline can be viewed as necessary for one's survival as a manager over the long term. Research can additionally help managers answer questions about the successfulness of programs - such as those for training and development - for which they may bear responsibility. Compensation/Benefits Wages and salaries - the payment received for performing work - are a major component of the compensation and reward process which is aimed at reimbursing employees for their work and motivating them to perform to the best of their abilities. In addition to pay, most employees receive benefits such as ESI, leave travel concession, and they receive non-financial rewards such as security, recognition and privileges. Although individual employees vary in the extent to which they value pay in relation to other work rewards, for most people the pay received for work is a necessity. Determining wage and salary payments is one of the most critical aspects of human resource management because - (i) the organizations' reward system has such a profound effect on the recruitment, satisfaction and motivation of employees and (ii) wage and salaries represent a considerable cost to the employer. A careful designed wage and salary program that is administered according to sound policies and consistently applied rule is essential if human resources are to be used effectively to achieve organizational objectives. Employee Assistance Employee assistance focuses on providing personal problem solving, counseling to individual employees Union/Labour Relations Unions frequently develop because 'employees are frustrated in achieving important goals Oil an individual basis and unionising is the only countervailing technique available to achieve these goals. The establishment of good labour relations depends on the constructive attitude on the part of both management and the union. The constructive attitude in its turn depends on all the basic policies and procedures laid down in any organisation for the promotion of healthy industrial relation. Environmental Influences on HRM Personnel manager can't perform his job in a vacuum as a number of environmental factors affect HRM. The environment furnishes the macro context and the organisation is the micro unit. Of primary importance here are the external influences of economic conditions, labour markets, laws and regulations and labour unions. Each of these external factors separately or in combination can influence the HRM function of any organisation. The changes in the external environment of an enterprise have a profound impact on the personnel. These changes include technological obsolescence, cultural and social changes, policies- of the Government etc.,
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Importance of HRM can be best described by the following issues. 1. Technological Changes :- Rapid technological changes and innovations are taking place all over the world. As a result of these technological changes, technical personnel are increasingly required. Hence, procurement of technically skilled employees is necessary to match the changing job requirements. 2. Economic Changes :- Economic conditions influence financial "health" of the organisation. Under favourable economic conditions, expansion of existing programs and creation of new programs are very likely. With less favourable or deteriorating conditions, contraction or cancellation of some programs may be necessary. Thus, a number of economic factors affect human resources management of an organisation by influencing its operations. 3. Employee's Organisations:- Employee's organisations have mustered strength to parallel to growth of industrialism. Labour unions seek to bargain with management over the terms and conditions of employment for their members. As a consequence, most HR activities are subject to joint decision making when employees are represented by a union. 4. Occupational shifts and global competition :- In labour markets, organisations seek employees (demand for labour) and individuals offer their availability to organisations (supply of labour). Labour supply and demand have implications for all activities, but particularly for compensation and external staffing. Moreover, they are generally not subject to organisation control, thereby creating potenti8.1 turbulence and uncertainty for HR management. Organisations also undergo changes and consequently their demands on employees will also change. The technological revolution and neckto-neck marketing competition of most of the organisations demand that the existing employees adopt to the every changing work situations and learn new skills, knowledge etc., to cope up with the new changes. 5. Legal factors :- The important legislation enacted in India affecting HRM are : Factories Act. Trade Unions Act, Workmen's Compensation Act, The Payment of Wages Act, The Minimum Wages Act, Payment of Gratuity Act, The Maternity Benefit Act. Legislation enacted by the government because of the belief that government is the custodian of industrial and economic activities. 6. Human Resource in the Country :- The structure, values and the level of education of human resources in the country influence the HRM function of any organisation. The influence of manpower in the country can be studied through: (a) Change in the structure of employment with the entry of workforce with different backgrounds. (b) The changes that have taken place in the structure of the workforce over the years has led to the emergence of new values in the organisations. (c) Increased level of formal education has led to the changes in attitude of employees. The welleducated employees always challenge and question the management's decisions and want a voice in the company's affairs affecting their interest. Thus, many environmental factors affect the performance of specific tasks of HRM. Changes in the internal and external environmental factors complicate the job both of line and personnel managers 'in overseeing the contributions of human resources. Considering the complexities and the challenges in the HRM now and in near future management has to develop sophisticated techniques and competent people to manage personnel on sound lines.
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Role of Human Resource Management The primary aim of Human Resource Management is the promotion of effectiveness of the people employed with the organisation with performance of their allotted duties by the substitution of cooperation in the common task in place of the suspicions and hostility which have so long been characteristic of relations between employees and employers, According to Indian Institute of Personnel Management -"Personnel management (Human Resource Management) aims to achieve both efficiency and justice, neither of which can be pursued successfully without the other. It seeks to bring together and develop an effective organisation, enabling the men and women who make up an enterprise to make their own best contribution to its success both as an individual and as a member of a working group. It seeks to provide fair terms and conditions of employment and satisfying work for all those employed". The role of HR Manager can be best described as: Role as employee advocate 1. To improve the service rendered by the enterprise to society through building better employee morale, which leads to more efficient individual and group performance. Thus, HRM seeks to manage change to the mutual advantage of individuals, groups, the organisation and the society. 2. To establish in the mind of those associated with the enterprise- employees, shareholders, creditors, customers and the public- at large - the fact that the enterprise is rendering the best service of which it is capable and distributing the benefits derived from their fairly and contributing to the success of the enterprise. 1. To create and utilise an able and motivated workforce, to accomplish the basic organisational goals. Role as company morale officer. 1. To recognise and satisfy individual and group needs by providing adequate and equitable wages, incentives, employee benefits, social security, challenging work, prestige, recognition, security, status etc. Thus an organisation can identify and satisfy individual and group goals by offering appropriate monetary and non-monetary incentives. 2. To employ the skills and knowledge of employees efficiently and effectively i.e., to utilise human resources effectively in the achievement of organisational goals. 3. To strengthen and appreciate the human assets continuously by providing training and developmental programmes. Training and development helps the organisation attain its goals by providing well-trained and well-motivated employees. 4. To maintain high employee morale and sound human relations by sustaining and improving the various conditions-and facilities. 5. To enhance job satisfaction and self-actualisation of employees by encouraging and assisting every employee to realise his full potential. 6. To provide facilities and conditions of work and creation of favourable atmosphere for maintaining stability of employment.
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7. To recognise and satisfy individual needs and group goals by offering appropriate monetary and non-monetary incentives Role as champion for employee issue: 1. To develop and maintain a quality of work life (QWL) which makes employment in organisation a desirable personal and social situation. Maximum individual development, developing desirable working relationship and effective utilisation of human resources are the primary goals of human resource management. Management has to create conductive environment and provide necessary prerequisites for the attainment of the objectives of human resource management. Difference between Human Resource Management and Personnel Management:Personnel Management 1. Management of personnel at work Human Resource Management 1. Management of personnel at work and also while not at work.
2. Among 5ms (5ms are organisational 2. Men is mostly important. resource : a) Money, b) Material, c) Machine d) Method e) Men) Men is least important. 3. Resource Concept is missing 3. HRM thinks man as Human Resource. They can be acquired/procured, developed and utilized. 4. Applications of labour Laws & soft skill Development.
4. Application of Labour Laws only.
5. Specialised personnel required like Labour 5. Any one can do it. Lawers. 6. Only personnel department is responsible to 6. It is applied across all Departments through execute it. out the total organisations. 7. Training is regarded as one of all general 7. Most important part is training and personnel function. development.
Administrative, operational and strategic functions of Human Resource Management:Functions of HRM
13 Wage & Compensation function Maintenance Function
Procurement Function Procurement Function :-
Development Function
1. Man Power Plan:- Net requirement of manpower a b. i) Total man power required Existing Man Power inventory + attrition Absenteeism Rate = Man days lost / (Man days worked + Man days lost) Job Identification Job status, security, extra benefits, superannuation benefits
ii) Job Description Every thing related to job like job code, Hours of work, responsibilities, benefits, etc. iii) Job specification:- Every thing related to employees Age, Sex ,Qualification, experience, knowledge, personnel skill, After that determine - Demand forecasting and Supply forecasting. 2. Recruitment & Selection:- Recruitment is to let the people know about potential vacancies. Steps of Recruitment a) Manpower plan b) Finding Recruitment sources:i) External Campus Interview, AD, Employment exchange, consultancy ii) Internal promotion & transfer, from Amongst, Internal Notification, Employee referral c) Receipt of Application Blanks d) Sorting e) Intimation to sorted candidates about Interview, venue, date and time. Selection:- To choose appropriate candidate from sorted Application process i) Written Test: a) Reasoning b) Aptitude c) Trade oriented Test d) Essay ii) Interview:
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a) Preliminary b) Stress c) Depth d) personal iii) Induction iv) Promotion, Transfer, retrenchment, Lay off, Lock out, Closure, Discharge. Development Function 1. On job Training. 2. Off job Training. Wage & compensation function: i. Wage & Salary Administration Living wage > fair wage > minimum wage Wage Related Acts i. ii. iii.
iv.
Payment of wage Act, 1936 Minimum wages Act, 1948 The employees provident fund & miscellaneous provisions Act, 1952 Payment of Bonus Act, 1965, while total Basic plus DA 2500, Bonus should be payable but for Rs. 2501- 3500 range, bonus is payable but should be calculated on Rs 2500 as deemed Bonus wage. Minimum Bonus = 8.33% on Basic plus DA or Rs 100 which ever is higher. Maximum Bonus = 20% on Basic plus DA subject to the maximum of Rs. 6000.
v. vi.
Maintenance function :- i. Lighting ii) Ventilation. iii) Temperature. iv) Safety. v) Health.
Unit - 2 Human Resource Planning

Methods & Techniques of HRP
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Demand Forecasting 1.It is a process of estimating the future-need of human resource in the context of corporate and functional plans. 2. It is forecast of future activities of any organization. 3. Demand of human resources in any organization is based on actual budgeting of manpower which is translated into activity levels of each function and department. 4. In manufacturing organization, the starting point of demand forecasting of human resource is basically dependant on sales forecast and target market. Based on sales forecast, customer segment manufacturing plans are prepared for which man power planning is done for machines to be operated. 5. MP planning is thereafter segmented further on number of employees required, their skill levels, educational background and preferred age groups. 6. Within the same organization MP requirement depend upon technologies, manufacturing process, product range, extend of automation, etc. 7. MP forecasting is also influenced by factors like manger, acquisition of SSI by giant industrial house. 8. Changing job profile for blue color as well as white color employees also influence demand forecasting. 1. Multi-skilling of jobs also influence Process of Demand Forecasting 1. Review manufacturing plans periodically depending upon market forecasting of the products. 2. Examine extent of investments for automation. 3. Examine potential of existing employees through objectives based performance appraisal system. 5. Take inventories of existing employees with regard to qualifications, technical competencies, managerial competencies, age group analysis, geographic distribution etc. 6. Find Attrition rate. Methods of Demand Forecasting Managerial judgment 1. Experienced senior managers prepare guidelines for junior managers. With regard to manpower requirement based on anticipated activity levels of the organization. 2. Departmental Managers prepare forecast of manpower requirements with the help of HR, O & M department, work study specialists.
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3. HR department reviews organization structure in conjunction with other functional heads and prepare HR forecasting department. 4. These two forecasts are reviewed at apex level by an independent committee consisting of functional heads to arrive at a final forecast. 5. This system is based on individual assessments and not free from personal bias. Mathematical Model 1. Make assumption concerning possible changes in the future. 2. Make succession analysis, probabilistic analysis (Marcov Analysis) of employee flow in and out recruitment, transfer, promotions, retirement, resignations, etc. Marcov Analysis (Probabilistic Model) 1. In succession planning the unit of analysis is the data concerning the individual In probabilistic model the unit of analysis is data concerning groups of employees classified according to job categories, locations, levels, grades, etc. 2. Here the probability of employees moving from one category to another or out of organization is considered. 3. While HR Policies, practices and past trends concerning promotion, transfer, separation, etc. provide useful basic for forecast analysis, the projections are influenced by managers own assumptions. 4. As per Marcov analysis arithmetical calculations are made to indicate possible movement from category A to B to C and so on from one point of time to another. 5. These calculations are repeated for all jobs / categories / levels for successive periods. 6. The sequences of transition depicted in the matrix is called Marcov chains. 7. Considering ever changing business and uncertainties and influence of subjective influence in decision making process, the forecast is only probabilistic. The central equation of this model is N (t +1) = n(t) p + R (t + 1) r + new recruit. Where n (t + 1) = number of employees of the next year. N (t) = number of earlier grade employees. P = % of promotion from earlier grade. R (t +1) = Current employees. R = % remaining at old position.
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R = % of new recruit. Regression Model 1. It is used to measure the relationship between one or more independent variables to one dependent variable. 2. In HRP, regression analysis can be used to correlate personnel requirements with out put, revenue etc. 3. The analysis is based more on historical patterns. 4. It helps in generating alternative of HR needs. 5. This model of analysis can not be presented to management with precise quantitative forecast. Benefits of HR Demand Forecasting 1. It helps management in making pre-determined contingency plan for requirement. 2. It helps in making succession planning and career development for potential employees. 3. It helps in continuity of operations. 4. It helps in estimating costs regarding manpower hiring, development and redeployment. 5. It helps in making training budget for the organization. 6. It helps in making redundancy plan for dead woods. Job Analysis 1.It is a procedure by which pertinent information is obtained about the job. 2. It is detailed and systematic study of information relating to operations and responsibilities of a specific job. 3. It is a process of determining, by observation and study, and reporting pertinent information relating to nature of a particular job. 4. It is determination of tasks, which comprise the job, skill knowledge, abilities and responsibilities required by the worker for successful performance. 5. It helps differentiating one job from the other. Job Description 1. It is a written record of duties, responsibilities and requirements of a particular job. 2. It is a statement describing the job in terms of its title, location, duties, working conditions and hazards.
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3. It tells us what is to be done, how it has to be done, and why it has to be done. Job specification 1. It is a standard and qualities of employee performing the job. 2. It stipulates minimum acceptable human qualities VIZ Educational background, skill requirements, previous experience, physical and mental standards for proper performance of a job. Purpose & uses of job Analysis 1. Organization and HR Planning 2. Recruitment and selection of employees 3. Job re-engineering. 4. Employee training and management development 5. Conducting performance appraisal 6. Health and Safety Steps of Job Analysis 1. Collection of background Information from study of organization structure. 2. Selection of representative jobs i.e. bench marketing. 3. Collection of data regarding tasks to machines equipment. Safety requirements, skill factor needed for job. 4. Developing. 5. Developing Job Specification Job Analysis is done through personal observation, question maintenance of records and conducting interviews. Uses of Job Description 1. 2. 3. 5. 6. Job grading Transfer & Promotion Common understanding of a job between an employee& employer Investigation of accidents. Investigation faulty work
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7. 8. 9. 10.
Time & Motion study Defining limits of authority Facilitating placement Fixing Compensation, etc.
RATIO / TREND ANALYSIS This analysis meets future manpower needs through analysis of existing trend. Here first existing ratio has to be found out between activity levels as total units of production to number of staff. This ratio has to be maintained for future analysis. Futures estimated production / activity level is found out. Then to maintain the existing trend, what should be the levels of manpowers requirement is found out. 1998 99 Production of units : 5000 Number of workers : 100 Ratio 1999 2000 : 5000 : 100 = 50 = 1 Estimated production : 8000 Number of workers Required = 8000 : x = 50 : 1 X = 8000 / 50 = 160. This analysis assumes there will be no improvement in productivity arising out of new technology or better working methods. Work Study: This power uses work measurement techniques. This shows Standard time taken by a group to complete an operation. Then the member of workers required (allowing for normal overtime, absenteeism, rest breaks and idle time) are found out. Planned out put per year = 20000 units. Standard hours per unit of output = 5 hours. Planned hours per year = 20000 x 5 = 1,00,000 hours. (Planned out put x Standard hours Per unit). Productive hours per man year (allowing for normal OT, absenteeism and idle time = 1750). Number of direct workers required = 57 Work study technique can be applied in manufacturing department where production budget shows planned out put for years. It can also be applied to clerical functions. But in technical departments and indirect functions like inspection it is difficult to apply. Some companies have tried to develop national Standards for these activities. But here the best technique is to use ratio trend analysis and
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then relates it to number of direct workers needed in work study method or work measurement Standards. SUPPLY FORECASTING Statistical methods No. Of supervisors vs no. of workmen Human resource recruitment plan can be made more meaningful in case the number of supervisors vs. Number of workmen is predetermined. This is dependent on the nature of operations of the organization. These days most of the organizations are shifting from too many hierarchical steps to too little hierarchical steps. That is to say the span of control is enhanced enabling the decisions to be fast. Therefore the forecasting of manpower requirement is largely dependent on the assessment as to how many workmen can be supervised effectively by a supervisor. Supply forecasting is based on Any organization can make supply forecasting based on the following factors:Organization chart this is the blue print of manpower requirement in every organization based on which demand forecasting is made. Replacement chart this is made based on assumptions regarding natural attrition analysis, turn over of labour expected, obsolescence of employees due to technological changes, retirement chart, etc. Transfer, Promotion of employees A factor which influences manpower forecasting is transfer and promotion of employees in an organization which is dependent on positions available as per organization structure, business plan and to meet employee requirements on humanities grounds. Down sizing & up-sizing of the organization and merger and de-merger of the organization. Based on the decision of the top management the companies either expands in diversified or mother product or they downsize due to financial or other reasons. Further the process of merger and demerger affect the process of demand forecasting of the organization. HR forecasts largely dependent on these critical factors. In case these factors are not taken in to consideration, the forecast is not only incomplete but defective too. Supply of Manpower Once the planning and forecasting of manpower requirement is complete, next step is taken by management in filling up of the positions. Normally vacancies are filled up either though internal or external sources. In case of internal source like transfer or promotion of employees, the management is not required to spend time and money to search for candidates from the open market. Action in this regard is fast compared to the cost and time involved in locating candidates from external market. However, considerable time and money are spent with regard to recruitment of employees. Recruitment Plan This is one of the most crucial functions of HR Manager in the organization. The HR Manager is required to make elaborate plans to decide the number, skill level, education, age, socio-economic background of candidates who will be recruited in the organization.
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He is also required to make an assessment of likely problems like cost, time factor, and pressure from external and internal sources. Based on the assessment, HR Manager makes contingency plans to overcome the problems. Otherwise the process of recruitment gets delayed or the organization faces manpower crisis. There are instances when the organization is compelled to declare lock out when pressure from external sources are not anticipated and major labour problem occurred in the process of recruitment. Therefore, recruitment may cost very problematic to management in case forecasting and planning are not done properly. After recruitment, HR Manager has to plan induction program for the new incumbent. The induction program should not be too short or too long. It should be pertinent to the position as well as meaningful and commensurate to the position for which the candidates are hired. Redeployment Plan In case management decides to re-deploy instead of requirement, sufficient attention should be given in this regard. An assumption that any employee can perform any job as because he has spent some time in the organization, is an incorrect assessment for redeployment. Therefore redeployment plan should take into account following. Identifying surplus work force With the improvement methods of work process improvement, etc. a certain number of workforce becomes jobless. Management should identify redundant work force. Profile of workmen to be re-deployed While developing plan for re-deployment, the age, sex, education level, potential assessment of the incumbent, training needs if any should be assessed so that these workmen are motivated to perform the new jobs productively. Recruitment Sources These may be Internal and external Internal source is generally identifying and re-deploying existing employees Too much of dependence on existing employees will debar the organization from injecting new blood in the organization. External sources are advertisement, institutional visits, friends & relatives, social commitments of the manager, alluring, head hunting, employment exchanges, internet, sons of the soil and various other methods. Care should be taken in selecting the supply source depending upon position, compensation to be offered, cost involved in it and time taken to explore. Training Plan While re-deploying surplus workmen and inducting a new employee, an assessment of training needs should be make for the incumbent. Training program should be tailor made and commensurate to the new position being offered to the employee concerned. While planning the training program, number and type of employee, duration of the training cost of training should be assessed. Also we should ensure that management takes feed back of the training from the employees deputed for training so that cost incurred does not go waste and the employee turns out to be a motivated person in the new job.
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Productivity plan One of the major in manpower utilization is simplification of work through O&M study. This is essential in view of continuous modernization, rationalization and automation in the plan and machinery for survival of the industry. In deployment of manpower meaningfully, it is also essential to set norms of work for every individual and the same should be monitored on day to day basis by the management. Failure to monitor the norms of production will set in lose practices and in-discipline in the organization. Redundancy Plan- Plan for labour turnover. Despite these efforts of deployment as situation may arise when a section of workmen may become surplus for the organization and management may be compelled to separate then In this situation appropriate redundancy plan should be developed through sufficient ground work and appropriate compensation in system of golden handshake as per provision of the Industrial Disputes. The different separation schemes that can be adopted by the management are VRS, retrenchment strategy, layoff, closure. Conclusions HRM requires continuous monitoring of above activities as primary objective of management is to gainfully utilize the workforce on an on going basis. In case demand for manpower is not assessed properly or the right supply source is not tapped, organization will ultimately suffer in terms of productivity, cost, discipline and employee morale. Techniques of Supply forecasting 2. Wastage Analysis wastage is more severe then labor turnover. It includes Voluntary Retirement normal retirement, resignation, death, Retrenchment, dismissals, etc. TAVISTOCK STUDY Represents wastage analysis by factory graph During transition phase marginal employees leave. During differential transit period the number of employees separating are going down as time proceeds, while during settled connection an employee settles down and decides to story land. 3. Labor Turnover Index Labor turnover = (Number of Employees leaving / Average number of completed) x 100 Where. Number of Employees leaving = Number of employees at the starting of the year Number of employees at the end of the years + New recruit.
Average number of Employees employed = (No. of employees at the start + no. of employees at the end) / 2 BALANCING SUPPLY AND DEMAND The future requirement of manpower can be determined by balancing demand and supply forecasts. In long term HR plan, say over two year the HR plans are designed in the form of targets to be achieved.
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The target designed is the equilibrium point where demand and supply of man power requirement is equal. A 12 month target would be established by subtracting HR losses though wastages from existing numbers and then adding the net out put from training scheme to obtain the real forecast number of people who will be available. This figure is then compared with the discovered forecast to show how many extra or fewer people will be required. 1. Current number of skilled fitter
2. 3.
120 - 15 +5 110 130 20
Less wastage over year Plus net out put over year from different training apprentices Scheme
4. Number available in 12 months time 5. Number required in 12 months time 6. Number to be recruited over the year Limitations in HRP : 1.
Labour Turnover HRP is a very risky process. It is not possible to track the current and future trends correctly. Labour turnover is a serious problem and within the year , mass labour turnover creates huge problem in the organization . Market Fluctuation and Change in Technology Technological changes and seasonal trends create huge labour force redundant and excess in the organization . This is a serious problem and this creates huge problem in HRP.
2.
Succession Planning : It is the process of ensuring the suitable supply of successors for current and future senior or key jobs arising from business strategies so that careers of individuals can be planned and managed to optimized the organizations need. Its purpose is to identify and develop people to replace current job holders in key positions. It encourages hiring from within and creates a healthy environment where employees have careers and not merely jobs.A typical succession planning shows details of key executives and brief preferences to their possible successors. Replacement chart and transition matrix. The replacement chart is a visual representation of who will replace whom if there is a job opening. It shows the various jobs in any department and revails the status of likely candidates who could be considered on the basis of performance and opinions by immediate superiors of future job. The transition matrix indicates likely replacement for each job and shows their relative strengths and weaknesses. This can be prepared in a detailed way so as to facilitate the easy selection of a candidate in case of future vacancies.
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UNIT - 3 RECRUITMENT Definition of Recruitment According to Kempner - "Recruitment forms the first stage in the process which continues with selection and ceases with the placement of the candidate". Usually, the selection process starts with the indent for recruitment by the departmental heads. These indents specify the
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reasons why recruitment is to be made. These indents are sent to the personnel department. The personnel department has to check the financial implications of the recruitment to find out whether the additional expenses would be within the budgetary provisions. If everything is as per norms, the recruitment is allowed and the initial pay and other allowances are determined. Recruitment makes it possible to acquire the number and type of people necessary to ensure the continued operation of the organzation According to Flippo - Recruitment "is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization". In the words of Mamoria - "Recruiting is the discovering Of potential applicants for actual or anticipated organizational vacancies". Yoder is of the opinion that - "Recruitment is a process to discover the sources of manpower to meet the recruitments of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force". Thus, recruitment is the generating of applications or applicants for specific positions. It is a linking activity bringing together those with jobs and those seeking jobs. Recruitment is therefore the process of searching prospective workers and stimulating them to apply for jobs in the organization.' Factors influencing Recruitment- external and internal. Basically, the sources of recruitment are of two types: 1. Internal sources : 2. External sources. Internal sources Internal sources include personnel already on the pay roll an organization, Filling a vacancy from internal sources by promoting people has, the advantages of increasing the general level of moral of existing employees and of providing to the company more reliable information about the candidate. Among the internal Sources, the following may be included: (a) Promotions (b) Transfers and (c) Response of employees to notified vacancy. Merits of internal sources of recruitment: 1. Internal sources of recruitment have the advantage of absorbing people already acquainted with the company culture. 2. Our employees are tried and tested people and we can depend on them. 3. It is a useful signal to employees and assures them that their, services is recognized and this helps in maintaining their motivation and morale. 4. It reduces labour turnover as it gives employees a sense, of job security and opportunity for advancement.
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5. Our employees are fully acquainted with the organization hence, job training can be reduced. 6. Internal sources of recruitment are less costly than the other sources of recruitment. Demerits of internal sources of recruitment: Internal sources of recruitment suffers from certain demerits they are : 1. It limits the choice to a few employees only. 1. The likes and dislikes of the superiors play an important role in the selection' of an employee. 2. It creates frustration among those.. employees who are not selected. External Sources of Recruitment: These sources lie outside the organization. They may come through the following sources : (a) Advertisements (b) Employment Exchanges (c) Campus recruitment (d) Unsolicited applicants (e) Labour contractors (f) Employee referrals and (g) Field trips (a) Advertisement: Advertising in newspapers, trade journals and magazines is the most frequently used method. In order to be successful, an advertisement should be carefully written. If it is not properly written, it may not draw the right type of applicants or it may attract too many applicants who are not qualified for' the job. Therefore, a well-thought out and planned advertisement for an' appointment reduces the possibility of unqualified people applying. Organizations often spend large amounts of money and time in advertisement. A well-designed advertising copy should contain the following 4 basic steps :1. Attracting Attention . 1. Developing interest 2. Arousing desire and 4. Generating action. These 4 basic steps is called AIDA formula Appropriate appeals or pulls must be given special attention to maximize the pulling effect of advertising copy. Since potential candidates are first introduces to the company through advertisements, image building can be made effective at this stage.
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There are three different types or methods of advertisement followed by organizations. They are:1. Using post box Numbers:- Some organizations do their own advertising. This advertisement carry only a post box number instead of the Company's name and address. But this method is generally not advisable as good candidates who feel that it is worthwhile to apply for a job without knowing the prospective employer. 2. Engaging Specialized Agencies:- Some organizations do not do their own advertising. They make use to specialized agencies which advertise positions without divulging the name of their client. 3. Direct Advertisement:- Some organizations do their own advertising and give their names and address of the organizations. This direct method is advisable as applicants get a idea about the particular organization they apply to. (b) Employment Exchanges. An employment exchange is an office set up for bringing together as quickly as possible candidates searching for employment and employees IO'1king for prospective employees. The main functions of employment exchange are registration of job seekers and their placement in notified vacancies Employment exchanges have answered a great need in placing workers in suitable vacancies. Employment exchanges register unemployed candidates and maintain the records of their names, qualifications etc. When the employers intimate die the exchange about the vacancies available in their organizations, the exchange selects the suitable candidates among the employment seekers who have registered with them and forwards their names to the employers for consideration. There are 2 types of employment exchanges Government Employment exchanges and private employment agencies. (c) Campus Recruitment:- Sometimes, recruiters are sent to educational institutions where they meet the placement officer or the faculty members who recommend suitable candidates. This system is prevalent in U.S.A. where campus recruitment is a major source. However, today the idea of campus recruitment has slowly caught up the fancy of Indian employers. The advantages of this method are that most of the applicants are present at one place and the recruitment can be arranged at a short notice. The recruiters can meet the faculty members and obtain an idea of the course content. The disadvantage of the campus recruitment is that it is neither feasible nor attractive for felling higher level position. The method can be used only for "entry level position". (d) Unsolicited applicants :- Unsolicited applicants are another source. Some candidates send in their applications without any invitation from the organization. An recruiter can use these unsolicited applications for appointment as and when vacancies arise. However, this source is uncertain. (e) Labour Contractors:- Many organizations employ labour contractors to hire workers. This method is usually resorted to when the work is of a temporary nature. (f) Employee referrals:- Friends and relatives of present employees are also a good source from which employees may be drawn. Some organizations with a record of good personnel relations encourage their employees to bring suitable candidates for various openings in the organization. This method of recruitment has the advantage of the new recruit being familiar with the organization and its culture. The disadvantage of this system is that it encourages nepotism and cliques of relations and friends may be formed in the organization. (g) Field Trips:- An interviewing team makes trips to towns and cities which are known to contain the kinds of employees required. These traveling recruiters are sent to, educational and professional Institutions, employees contracts with public and manual exhibits. In this method of recruitment, carefully prepared brochures describing the organization and the job it otters are distributed to the
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candidates before the interviewer arrives. The arrival dates and the time and venue of interview are given to the candidates in advance. Merits of external sources of Recruitment: 1. Fresh talent and skill comes into the organization. 2. New employees may try to change old habits. 3. New employees may be selected at the terms and conditions of the organization. 4. Highly qualified and experienced employees may help the organization to come up with better performance. 4. Since persons are recruited from a large market, the best selection can be made. IA other words, the recruiter has a wide range of candidates to choose from. 5. External sources provide the requisite type of personnel for an organization, having the required skill and standard, 7. External sources of recruitment are economical because potential employees do not need extra training for their skills. Demerits of external sources of Recruitment: 1. External sources of recruitment reduce the morale of employees because outsiders are preferred to fill up superior vacancies. 2. External sources of recruitment deny carrier advancement for employees. 3. The recruiter may not be in a position to properly evaluate outside candidates because the time available at his disposal is very less. This may result in faulty selection of employees. 4. Outsiders are not fully acquainted with the policies and procedures of the organization. Therefore, they should be given training which is quite expensive. After discussing the different sources of recruitment we can conclude that there is no hard and fast rule whether the recruitment must be internally or externally or exclusive to each other. The best management policy regarding recruitment must be to first look within the organization and if we are not able to locate the suitable talents, external recruitment becomes inevitable. To use the words of Koontz and O'Donnel "the (recruitment) policy should be to 'rise' talent rather than' raid' for it". Objectives of Sound Recruitment Policy A policy is a standing plan policies are directives providing continuous framework for executive actions on recurrent managerial problems. A policy assists decision-making but deviations may be needed, as exceptions and under some extra-ordinary circumstances. Such a policy asserts the objectives of the recruitment and provides a framework of implementation of the recruitment programme in the form of procedures. The essentials of policy formation may be listed as follows:1. A policy should be definite, positive and clear. It should be understood by everyone in the organization.
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2. A policy should be translatable into practice. 3. A policy should be flexible and at the same time have a high degree of permanency. 4. A policy should be formulated to care all reasonable anticipated conditions. 5. A policy should be founded upon facts and sound judgment. 6. A policy should conform to economic principles, statutes and 'regulations. 7. A policy should be a general statement of the established, rule.: Therefore, a well-considered and pre-planned recruitment policy, based on corporate goals and needs may avoid hasty decisions and help the-organization to appoint the right type of personnel. According to Yoder, recruitment "policy may involve a commitment to broad principles such as filling vacancies with the best qualified individuals. It may also involve the organization system to the developed for implementing recruitment programme and procedures to the employed"; Therefore, recruitment policy involves a commitment by the organization to principles such as:(i) To find and employ the best qualified persons for each job. (ii) To retain the best talent by offering life-time carriers and (iii) Facilitating personal growth on the job. Purposes/Objectives of a Sound Recruitment Policy A good recruitment policy must satisfy the following conditions: 1. Organization's Objectives:- A good recruitment policy should' be in conformity with the organizations objectives. It must take into consideration the basic parameter for recruitment decisions. 2. Identification of the recruitment needs:- A Good recruitment policy should be- flexible enough to meet the changing needs of an organization. The recruiters should prepare profiles for each-category of workers and accordingly workout, the employees specification.; 3. Ensure long term, employment opportunities for its employees : A good recruitment policy should be so designed as to, ensure carrier growth for its employees on a long-term basis. It should help in developing the potentialities of employees. 4. Preferred sources of recruitment:- A good recruitment policy should match the qualities of employees with the requirements of the work for which they are employed. The preferred sources of recruitment which would be tapped by the organization for say skilled or semi-skilled workers could be internal sources or employment exchanges whereas for highly specialized managerial personnel, external sources could be preferred.
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Unit - 4 Selection
Selection Selection either internal or external is a deliberate effort of the organization to select a fixed number of personnel from a large number of applicants. The primary aim of employee selection is to choose those persons who are- most likely to perform their jobs with maximum effectiveness and to remain with the company. Thus, in selection, an attempt is made to find a suitable candidate for the job. In doing so naturally many applicants are rejected. This makes selection a negative function. In contract,
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recruitment is a positive function because in it attempt is made to increase the number of applicants applying for the job. Selection involves three distinct but not mutually exclusive stage. They are Recruitment, Selection and Induction Definition of Selection Having identified the potential applicants, the next" steps is to evaluate their experience and qualifications and make a selection According to' Yoder, "the hiring process is of one or many gono-go' gauges candidates are screened by the applicants go on to the next hurdle, while unqualified are eliminated". Great attention has to be paid to selection because it means establishing the "best fit between job requirements on the one hand and the candidates" qualifications on the other. Faulty judgment can have a far-reaching impact on the organizational, functioning. There are several advantages of a proper selection procedure. As the employees are placed in the jobs for which they are best suited. They derive maximum job satisfaction and cheap maximum wages. Labour turnover is reduces and the overall efficiency of the concern is increased. And finally, a good relationship develops between the employer and his workers. Process of Selection: There is no shortcut to an accurate evaluation of a candidate. A variety of methods is used ,to select personnel. The selection pattern; however, is not common for all organizations. It varies from one to another, depending on the situation and needs of the organization. Therefore, there is no standard selection procedure followed by all organizations. However the steps commonly followed are as under: 1. Application bank. 2. Initial interview of the candidate. 3. Employment tests. 4. Interviews. 5. Checking references. 6. Physical or medical examination. 7. Final interview and Induction. 1. Application Blank: In a sense the application blank is a highly structured interview in which the questions are standardized and determined in advance. An application blank, is a traditional, widely accepted devise for getting information from a prospective applicant. The application blank provides
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preliminary information as well as aid in the 'interview by indicating areas of interest and discussion. In an application blank, information is generally called as the following items:(a) Biographic data:- This is concerned with such variables as age, sex, nationality, height, weight, marital status and numbers of dependents. There is very little empirical evidence to suggest that this information can be helpful in predicting on-the-job behaviours. However, this information can be used for future reference in case .of need. (b) Education and past experience :- Educational qualification knowledge gained from technical institutions etc. needed by the employer. Today, employers look at the grade point, percentage of marks as prerequisites for a job. The reason is to eliminate those candidates who do not reach the required grade. However, the magnitude of coefficients between the grade points, acquired and on the job performance is so low that too much confidence cannot be placed in them. Previous experience, the nature of duties and responsibilities is often asked by the employer. Although it is often said that the best predictor of future work is past performance on the job, little has been done to utilize it systematically for the selection process. (c) Personal items:- Extra-curricular activities, sports, hobbies, association members are often required to find out a candidates suitability for a post. (d) References:- References are letters of recommendation written by teachers and/or previous employers. Requesting references is a wide spread practice with substantial doubt as to its validity. Reference checking requires the same use of skills as required by the interviewer. Some organizations have found that by assuring the referee of absolute confidentiality, reliable and valid references have been obtained. Filling of the 'application blank' by the candidate is the first step in the process of selection. In this form, the applicant gives relevant personal data such as his qualification specialization, experience etc. The application blanks are carefully scrutinized by the company with reference to the specifications prescribed for the jobs to decide the applicants who are to be called for interview. The information sought in the application blank should be relevant to the objective of selection. The data submitted in an application form should help predict the candidates chances for making a success of his job. To ensure that the information given by the applicant is true, the application blank usually carries a threat of discharge at any time after employment if the I information furnished in it proves to be false. 2. Initial interview:- Those who are selected for interviews on the basis of particulars furnished in the application bank are called for initial interview by the organization. This is meant to evaluate the appearance of the candidate and to establish a friendly relationship between the candidate and the company and for obtaining additional information on clarification on the information already on the application bank. A interview is a face-to-face, observational and personal appraisal method of evaluating the applicant. Its purpose is not to make a detailed probe of qualifications but to refuse application forms to those who cannot be employed because of such reasons as overage, disqualifying physical handicaps and lack of required experience or training. Preliminary interview becomes a necessity, when a large number of candidates apply for the job. 3. Employment tests :- For further assessment of a candidates nature and abilities, some tests are used in the selection procedure. Psychologists, have developed certain tests by which a candidates ability, intelligence, etc., can be estimated. Testing is an important stage of the selection process. If tests are properly conducted, they can reduce the selection cost by reducing the large number of applicants to manageable levels. Tests are tools in evaluating the capabilities of an applicant to a position. Different tests are administered to determine the suitability of candidates for different. positions which test is to
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be administered depends upon the type of the job, the skills required, the duties attached to the job etc. The different types of tests are:(a) Aptitude test:- Aptitude or potential ability tests are widely used to measure the talent ability of a candidate to learn new job or skill. Aptitude tests measure ability and skills. They enable us to find out whether a candidate, if selected, would be suitable for a job. Specific aptitude tests have been designed for jobs that required clerical, mechanical and manual abilities and skills. Aptitude tests for medicine, law, painting, and other activities are also available. The disadvantage of aptitude test is that they do not measure motivation. On the job motivation is often found to be more important than aptitude for the job. That is why the aptitude test is supplemented by interest test and personality tests. (b) Interest test:- Interest test is used to find out the type of work in which the candidate has an interest. An interest test only indicates the interest of a candidate for a particular job. It does not reveal his ability to do it. These tests aim at finding out the types of work in which a candidate is interested. They are inventories of the likes and dislikes of the people in some occupations. Therefore they are useful in vocational guidance. Interest tests have been designed to discover a person's area of interest and to identify the kind of work that will satisfy him. Examples of Interest tests are "Kuder Preference Record" and "Strong Vocational Interest Blanks." (c) Intelligence test:- This test is used to find out the candidate's intelligence. By using this test, the candidate's mental alertness, reasoning ability, power of understanding etc., are judged. Intelligence tests are generally aptitude tests, although there is some disagreement on this. Mental or intelligence tests measure the overall intellectual activity of a person and enable us to know whether he has the mental capacity to deal with new problems. The scores on intelligence tests are usually expressed as Intelligence Quotient (IQ), which are calculated as follows:IQ = Mental Age over Actual Age x 100. Intelligence tests are useful for selection purposes and determine the futures of an employees word fluency, memory, inductive reasoning and speed of perception. The assumption made in IQ tests is that there are various forms of intelligence tests for various age groups. Ones IQ levels well increase or decrease depending upon which age-level test one can pass. The administration of these IQ tests calls for much preparation on the part of an organization, and they are expensive and cumbersome as well. However, it is conducted on the assumption that intelligence testing can get bright and alert employees who can learn fast, can be trained fast. (d) Performance or achievement test:- This test is used to measure the candidate's level of knowledge and skill in the particular trade or occupation in which he will be appointed in case he is finally selected. Achievement test measure the skill of knowledge which is acquired as a result of previous 'experience or training secured by a candidate. They determine the admission feasibility of a candidate and measure what he is capable of doing. Achievement tests measure a person's potential in a given area one example is 'the trade test which involves the performance of a sample operation requiring specialized skill, and believed to be satisfactorily answered by those who have 'some knowledge of the occupation and trade. For e.g. :- A candidate for a driver's post may be asked to drive the vehicle. Achievement tests are of two kinds:(i) Tests for measuring job knowledge: These tests are administered to :.., determine proficiency. Such tests are useful for stenographers, sales girls etc.
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(ii) Work sample tests: This test is administered on the actual job. A typing test for a typist test the skill and accuracy of the candidates. (c) Personality test Personality test is used to measure those characteristics of a candidate which constitute his personality. Personality tests are very important in the selection process, particularly in the case of appointment to the posts of supervisors and higher executives. Personality tests have a wider use in. industry because they provide a well-rounded picture of an applicants personality and because managers have to realize the importance of emotional characteristics. They assess a candidates motivation interests, his ability to adjust himself to the stresses of every day life and his capacity for inter-personal relations and self-image personality tests are of three types:(i) Objective tests - are tests which measure self-sufficiency and self- confidence. (ii) Personality tests - are tests which assess a candidates interpretation for certain standard stimulus situations. This test a candidates values, motives arid personality. (iii) Situation tests - This test measures a candidates reaction when he is placed in a peculiar situation. In recent years tests have become an integral part of the selection process in different types of organizations in the country. It is more so in a majority of Government undertakings. Testing is an important stage of selection process. If tests are properly conducted, they can reduce the selection cost by reducing the large groups of applicants to manageable levels. 4. Interview:- After putting the candidates to various types of tests, all those passing out of the tests are finally to be called for interview. The interview, is perhaps the most intricate and difficult part of selection procedure. Interviews are conducted to test the capabilities of the candidate to occupy a particular post. It determines his knowledge, experience, skill. intelligence. general perception, mental and psychological reflexes, capacity to perceive things quickly and capabilities to take quick and immediate decisions. Interview is probably the most widely used selection tool. It is a selection technique which enables the employer to view the total individual and directly appraise him and his behaviours. According to Scott - "An interview is a purposeful exchange of ideas, the answering of question and communication between two or more persons." According to Biswanth Ghosh - "The interview is a face-to-face, oral, observational and personal appraisal method of evaluating the applicant. It can also be described as a conversation with a purpose and is used almost universally in the staffing process". The interview consists of interaction between interviewer and applicant. If handled properly, it can be a powerful technique in achieving accurate information and getting access to material otherwise unavailable. If the interview is not handled carefully, it can be a source of bias, restricting or distorting the flow of communication. An interview is thus an attempt to secure maximum amount of information from the candidate concerning his suitability for the- job under consideration. The different types of interviews for selection are given below: (a) Preliminary interview (b) Extensive interview (c) Stress interview
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(d) Discussion interview (e) Structured interview (f) Non structured interview (g) Group interview (h) Final interview (a) Preliminary interview:- These interview are preliminary screening of applicants to decide whether a more detailed interview will be worthwhile. The only argument for this method is that it serves the company's time and money. In point (2) above a detailed explanation is given for preliminary or initial interview. (b) Extensive interview:- Extensive interview or depth interviews cover the" complete life history of the applicant. It is semi-structured in nature and utilizes questions in key areas which have been studied in advance by the interviewer. " The idea of such an interview is to get a true picture of the interview by intensively examining his background and thinking so that a correct evaluation and decision may be made. It is an excellent method for executive selection. It is however, lastly and time consuming. (c) Stress, interview:- Stress interviews are deliberate attempts to create pressure to observe how an applicant performs under stress. The stress" interview may have some value for jobs where emotional balance is a key factor. This procedure was originally developed in the U.S military service for the selection of spies. It involved putting the candidate under severe emotional strain in order to test his response. The stress inducing interview must be done carefully by trained and skilled interviewers. Emotionally disturbed persons, should not be subjected to stress. It should not be done at the beginning of the, interview because this can make it impossible to compare a candidate's, customary behaviour with his behaviour under stress. To induce the stress, the interviewer responds to the applicant's answers with anger, silence, criticism or, a flurry of incisive follow-up questions. Events such as noise, interruptions or change of schedules are introduced. The interviewer can act uncooperative and rouse objections. (d) Discussion Interview:- In this type of interview, the candidates enter, into group discussions, knowing that the interview is a test, but do not know which} qualities are being measured or tested. The assumption underlying this type of interview is that the behaviour displayed in the solution of the problem is related to potential success in the job. A few observers watch the activities of the candidates (interviewees). The emphasis is on the analysis of the interviewer's impressions from discussions. (e) Structural Interview:- Patterned or structural interview is based on the assumption that, to be most effective, every detail should be sought. Questions must be asked in a particular order, with very little deviation. Such interviews are also called as standardized interviews because they are pre-planned to a high degree of accuracy. In this type of interview, a series of questions which can through light on the candidate's background are standardization in advance and validated against the record of employees who have succeeded or failed on the job. In the interview process these standard questions are asked as they are written, the order may be varied but not the phrasing of the questions. The basis for this approach is that a candidate's future behaviour can be judged by his past performance. The structured interview has got nothing to do with job skills. It is designed to apprise only personality motivation, and skills. The structured interview was designed by Mc Murry to measure i the personality traits that are wanted among all employees. Each traits are : (i) Stability, (ii) industry, (iii)
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ability to get along with others, (iv) self-reliance, (v) willingness to accept responsibility, (vi) freedom from emotional immaturity and (vii) motivation. (f) Non-structural Interview:- In the non-structured interview, the applicant is asked some very general questions, and he may reply to these in any way he likes. In this type of interview, the candidate is encouraged to express himself freely. The objective is to find out traits, strengths, weakness etc. The purpose of such interview is to determine what kind of person a candidate really is. The basic procedure followed in this type of interview is the minimum use of direct questions. The interviewer should listen carefully without interrupting and allowing pauses in the conversation. The basic philosophy of such interview is that a candidate is more likely to reveal his actual self then when he answers set questions. (g) Group Interview:- In this type of interview, several job applicants are placed in a leader-less discussion and interviewers set in the background to observe and evaluate the performance of the candidates. A topic for discussion is assigned and at the beginning there is no leader. The interviewer observes how one assumes leadership and how it is accepted by other members of the group. In this interview 5 or 6 candidates are placed together in a situation in which they must interact. The situation may be structured or unstructured. The selector remains silent throughout the discussion and makes notes of the candidate's interaction. The candidate who verbalizes better and who has a better personality is likely to be selected. (h) Final Interview:- After the applicant is selected, it is advisable to sell the job to the applicant. He should be given an idea as to his-future potential within the organization. He is formally appointed by issuing him an appointment better or by concluding with him a service agreement. The appointment letter contains the terms and conditions of employment, pay scale and other benefits associated with the job. Each of the above mentioned type of interviews is conducted with a distinct purpose. All interviews are conducted to measure the capabilities of the candidates to occupy positions of importance. Not all types of interview is to be conducted depends upon the type of the job. The skills required, duties attached, the type of applicants etc. At the end of the interview the interviewer must elicit the necessary information from the candidate if possible through an evaluation form. Quite often, interview rating forms are used which require evaluation of various factors relevant to the job which have been observed during the interview besides getting an overall evaluation. The interview process Since the interview is one of the most commonly used personal contact methods, it has to be conducted with great care. Generally the following steps are followed in an interview process. They are 1. Reviewing background information 2. Preparing a question plan 3. Creating a helpful sitting 4. Conducting the interview 1. Reviewing background information:- Before the actual interview begins, the critical areas in which questions will be asked must be identified for judging ability and skills for the job. Pertinent information about the candidate should be collected and noted before hand. This preparation saves
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time and mental efforts during the interview. If there is more than one interviewer some practice and mock interviews will help. 2. Preparing a question plan:- Every interviewer should have a question plan. "This is formed by scrutinizing the information given in the application form. This procedure will make the candidate more comfortable because the discussion with focus on his experiences. Besides, preparing a question plan is Useful for inexperienced interviewers. It will act as a guide and the interviewer : will know whether he has covered all the areas of the interview. 3. Creating a helpful setting:- The place of interview should be carefully chosen. Prepare arrangements for receptions and seating give an impression to the interviewee that he is an important person to whom the interviewer will devote unlimited attention. Most interviews have overtones of emotional stress for the applicant. Success in interviewing depends on reducing this stress. Properly arranged seating accommodation should be made available. The candidates should be well-received by the receptionist. The sitting room is generally kept apart from the place where the actual interviews are held so that the conversation between the interviewer and the interviewee is not overhead by prospective candidates. In brief, the place of interview should have privacy and comfort, atmosphere of leisure, freedom from interruptions, authentic feeling for and interest in the candidate. 4. Conducting the interview:- Conducting the interview is usually aimed at establishing rapport with the candidate, getting a complete and accurate information from him and recording it properly. It is, therefore, necessary to use a number of different approaches during the course of an interview. (a) Establishing Rapport - The fundamental step is establishing 'rapport', putting the interviewee at case, conveying the impression that the interview is a conversation between two friends and not a confrontation. A job interview can be a trying experience for the applicant. The interviewer should gain the confidence of the candidate at the very beginning by establishing rapport with him. To begin with, the interview should proceed in the form of a conversation so that the two may get to know each other, with the specific underlying purpose of getting information in certain areas. Sufficient time should be allowed to enable the candidate to reveal the facts necessary for a fair assessment of him. (c) Getting Complete and Accurate Information:- Once the interviewee is put at case, the interviewer starts asking questions or seeking information related to the job. Getting complete and accurate information from the applicant is an are which calls for experience, skill and technique on the part of the interviewer. The interviewer should use the language which is clear to the applicant again it is extremely important to lead up to complex questions gradually Asking a difficult and complex question in the beginning can affect subsequent interaction, particularly if the interviewee is not able to answer the question. Thus, it is advisable for the pattern to follow the simple-to-complex sequence. Some general rules to be observed regarding questioning are: 1. The interviewer should be prepared with precise questions and not take too much time in framing them. 2. Leading questions should be avoided because they give the impression that the interviewer is seeking certain kinds of answers. 3. Close ended questions which call for "yes" and "no" should not be asked for they offer little scope to the candidate to expand his answers and give more information. 4. Showing surprise or disapproval of speech, cloths or answers to questions can also inhibit the candidate.
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5. An interviewer should not allow the interview to get out of hand. He should be alert and check the interviewee if he tries to lead the discussion into areas which are not relevant to the interview. 6. The interviewer should have talent, experience, and a sympathetic attitude so that they may draw out the applicant who may have a considerable potential but who may be shy and reserved in the beginning. 7. Highly personal questions should be omitted until one is sure that rapport has been fully established. (c) Recording of Impressions:- In order to make an accurate evaluation of the interview, it is necessary that the interviewers' impressions are briefly written down. This will help the interviewer to arrive at a final judgment. (d) Concluding the interview:- In the final few moments, the interviewer guides the interview to a close. The close of the interview is as important as its beginning. The interview should be closed diplomatically so that the interviewee may feel satisfied that he was given a full hearing. After the candidate leaves, the interviewer looks over his notes, recalls his impressions and makes a provisional appraisal before seeing the next candidate. 5. Checking Reference:- The reference provided by the applicant have to be checked. This is to find out from the past records of the candidate. Reference checking requires the same use of skills as required by the interviewer and diplomacy. The main difficulty is ascertaining the accuracy of information given. Besides inaccurate facts, the referees' inability to assess and describe the applicant and his limited knowledge about the candidate are the difficulties in checking references. In spite of its difficulties, it is necessary to verify the information secured. In many organization, reference checking is taken as a matter of routine and treated casually or omitted entirely. 6. Physical or Medical Examination:- The next step is getting the candidates medically if there is a need. Quite often the candidates are told to get medically examined before reporting for duty. In Government and other quasi government organizations getting medically examined is a must before reporting for duty or at the time of reporting for duty. Medical examination is a part of the selection process for all suitable candidate in many organizations. The objectives of this examination are: (i) to check the physical fitness. (ii) to protect the company against the unwarranted claims for compensation. (iii) to prevent communicable diseases. (iv) to prevent injury or damage to the health of employees by placing them in proper job situation. (v) to discover existing liabilities at the time of hiring so that the company's subsequent liabilities can be assessed in case of workmen's claim for compensation for an injury. (vi) to place persons on jobs which they can handle without damage to their health.
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The main purpose of the medical examination is to see whether the candidate is medically fit to occupy a particular post and has the capabilities to withstand the physical and psychological stresses and strains required of the job when conducted by in service medical personnel they are more valuable to the applicant than when done by a doctor knowing very less or no knowledge of the working condition under which the job is done. For instance in defense service, the medical examination is done by the doctors attached to each defense wing. Such an examination can predict, the possible health problems in future involving serious surgical conditions and prolonged treatment which would involve huge medical expenditure to the organization. Normally candidates are not rejected in medical examination unless they are suffering from contagious or incurable disease or complex emotional problems. Though medical examination is generally conducted, they often fail to detect complicated disease because they are conducted in a cursory way. Further, the validity and reliability of medical examination as a selection tool is minimum because of two reasons. They are 1. With growing automation, less physical strength will be required for the job. 2. A sound physical condition is no guarantee against accidents. To conclude, medical examination reveals whether or not a candidate possesses the required stamina, strength and tolerance of hard working : conditions. Major deficiencies may serve as a basis for rejections, the basic purpose of a physical examination is to place selected candidates on jobs which they can handle without injury to their health. 7. Final Interview and Induction:- After the candidate is finally selected the management will have to sell the job to him. He should be told as to what his duties are, what is required of him and what his future prospects in the organization are. Normally this information is given to the candidate at the time of final selection interview. This is the way how the candidate is inducted into the job. He is formally appointed by issuing him an appointment letter or by concluding with him a service agreement. The 'appointment letter contains the terms and conditions of employment, pay scale and other benefits associated with the job. The interviewer can describe the company and its policies, the duties and responsibilities of the applicant as well as the opportunities available to him for future promotion. The interviewer should, in fact highlight the favorable aspects of the job Types of Induction programme 1. General Induction programme:- Once an offer of employment has been extended and accepted, the final stage in procurement function is concluded. The individual has then to be oriental towards the job and the organization. This is formally done through a process known as induction or orientation. Induction is a welcoming process- The idea is to welcome the candidate, make Him feel at home in the changed surroundings and to introduce him to the practices, policies and purposes of the organization. The necessity of an induction programme is that when a person joins an organization, he is an fitter stranger and is bound to feel shy, insecure and nervous. Induction leads to reduction of such anxieties. 2. Specific orientation programme:- At this stage, induction is conducted by the foreman. Induction is specific and requires skill on the part of the foreman. A new employee must be provided operational knowledge that is specific to the position and location. The immediate loss (foreman) is responsible for training induction. Every new employee should know (i) The people who work with you. (ii) The work you are responsible for.
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(iii) The result you accomplish. (iv) The current status of the work. (v) Your relationships in the, organization. (vi) Reports and records you must understand and maintain.
Unit 5 Training
Concept, Meaning and Scope: With the recognition of training as an important avenue for development, during the last few years, the scope and application of training has been considerably widened. The value of training process is being increasingly acknowledged in engendering behavioral changes and in developing life skills, leading to personal growth. It equips individuals with the competencies that help cope with day to day problems of living and manage interpersonal relations, improving his interpersonal effectiveness. In most cases, training is influenced by a set of ideas and values that represented the broad parameters of national objectives for social and economic development. There are other aspects of this issue as well. The training process itself is based on a set of values. When we emphasize participatory training, dignity of individual, and respect for others point of view in training, we are essentially suggesting some over arching values that should become the basis of training process, guide the trainers in adopting appropriate training styles and stimulate behavioral changes bin the participants consistent with these values.
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Training and Education As approaches to learning Essentially training and education are both growth oriented and directed at the individual. Both aim to develop an individual the ability to face the complexities of life and its challenges. However, there are some dissimilarities between the two approaches of bearing. Education is directed more towards the future of an individual. It prepares her for future challenges of life, shapes her career and grooms her for social responsibilities. On the other hand, training provides a crucial frame of reference towards the past and present of an individual her performance, level and range of her competencies, attitudes and values, the manner in which she has been carrying out her responsibilities, her interaction with others, work related problems, etc. The scope of training is limited, determined by the training objectives. It is specific and highly structured. It has relatively short term perspective of the future of an individual. But education has long term perspective of an individuals life and the scope is wide. Transfer of training can be monitored and assessed. The organization and even the training agency can exercise greater control on the process. But in case of education it is difficult to monitor how the learning acquired is being used by an individual. The educational institution has virtually no control on the situation and circumstances of the individual. Need for training: Pre exercise training for developing new skills. An individual may process skills that are not relevant to the intended job Possesses X,Y,Z skills but of lower level, Needs to use them more effectively Trainer Developing new skills Training helps in acquiring skills relevant to the intended job Higher level X,Y,Z skills. More effective use of existing skills.
In exercise training for improving level of performance Trainer
Assignment of new responsibilities / New role dimensions. Possesses A,B,C skills but requires X,Y,Z skills for new job responsibilities. Trainer Adding X,Y,Z skills appropriate to the new job but also sharpening the use of A,B,C skills.
Stakeholders in training and their responsibilities Participants Participate and contribute to all training activities. Set out personal learning objectives and direct to relieve them Extend support to the training team in achieving the programme objectives. Assist co participants in realizing their learning objectives.
42 Assist the training agency in identifying training needs of their nominees. Select appropriate participants in accordance with the Criteria and requirements set out by the training agency. Communicate expectations from the programme to their Nominees and the training agency. Keep in regular contact with the training agency to secure In formation on the progress and performance of their Nominees especially if it is a long term perspective. Provide appropriate opportunities and support to their Participants to facilitate the transfer of training to the field Situation.
Organization
Training Agency
Provides an environment that is conductive to learning Including physical facilities. Ensure effective coordination between the trainers and the Support staff personnel associated with the delivery of the Programme. Maintain contact with sponsoring agencies, especially in a Long term programme and keeps it informed of the Progress and performance of its nominees. Maintain consistency between what it advocates in the Programme and what it practices in its own functioning. Maintains the training team. Assists in the professional growth and development of the Training staff. Appraises trainee performances on a regular basis.
Trainer
Planner Facilitator of the learning process Subject matter specialist Developer of the individual Enhancing human values Councilor Leader of the group Members of the group
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Areas of training program. (A) Direct inputs by the trainer 1. Lectures or presentation. 2. Interventions during discussions or other group activities to present varied dimensions of the issues under discussions. 3. Opening remarks when introducing a new topic, module or training activities. 4. Debriefing at the end of a training activity or method. 5. Response to questions of the participants, clarifications or elaborations on points raised up by the group. 6. Summary of the comments or concluding remarks. 7. Informal out of session discussions or conversations. 8. Acts as a role model of the participants. B. Learning through sharing within the training group The following factors promote sharing in a training group. 1. Clarify on the objectives and scope of sharing. This enables the participants to be specific and focus only on relevant experiences. 2. Willingness on the part of the participants to share their experiences and views without fear of adverse actions, reactions rejections or repudiations, i.e., the environment is conductive for free and open sharing. 3. Their ability to recall and bring forward experiences that are relevant to a particular topic or activity. 4. The ability of the participants to translate their experiences into concepts, principles and approaches which can be aptly put across to others in the group and understood by them. 5. Communication skills of the participants. 6. Out of session exchanges with participants and trainers
Factors influencing the learning process

a)
Personal Factor
1. Trainers and trainees quality. 2. Desire for personal growth and development. 3. Incentives or benefits of learning for learning
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4. Consistency between personal learning objectives and programme objectives. 5. Self image or level of self esteem. 6. Situation in the organization. 7. Previous training experiences of the participants. 8. Participants learning styles or skills. b) Environmental Factors 1. Trainer / Training team. 2. Training strategies, methods and techniques. 3. Programme contents or topics. 4. General learning environment in the programme. 5. Relationship with other member of the group and the trainers. 6. Composition (Demographic, Psychographic, Hygienist, Religion bonded) of the training group. STEPS IN TRAINING PROGRAMME 1. Identify programme content on the basis of programme objectives. 2. Break programme content into distinguishable subtopics or modules. 3. Organize and sequence programme contents in a way that there is natural and logical forward movement of the programme, participants interest is sustained through out the period of the programme, and a linkage is established between different parts of the programme. Determine learning outcomes for each subtopicor module. 4. Select on appropriate support materials and equipments for training activities and the conduct of the sessions. 5. Determine assignments for training and distribute responsibilities to the support staff. 6. Establish a viable and suitable mechanism for monitoring and evaluation of the programme. The following are important consideration for a trainer to keep in mind while preparing a design. (1) Objectives, functions and work environment of the organization /s that have nominated the participants. (2) Composition and special features and attributes of the training group. (3) Maintaining a momentum and impetus of the programme.
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(4) Promoting the learning process (5) Building flexibility. (6) Effective monitoring. (7) Management and administration of the programme. METHODS OF TRAINING A) ON THE JOB TRAINING : 1) JOB INSTRUCTION TRAINING : It is the process of training through step-by-step learning. Usually steps necessary for the job are identified and an employee is exposed to the different steps of a job by an experienced trainer. Some managers rely considerably on the value of learning through experience on the job. They prefer this method as this gives trainees direct responsibility as compared with other formal methods of training. It must be remembered that while people learn best as actually doing things, the exercise needs should be properly planned and strucrured. 2) VESTIBULE TRAINING : The method duplicates on the job situation away from the actual worksite with machinery and equipment similar to those used in actual production or operation. A special area of operation or room is set aside from the main production area. The trainee is the permitted to learn under stipulated condition, without disrupting ongoing operation. A primary advantage of vestibule training is that it relieves the employee from the pressure of having to produce while learning. The disadvantage of this type of training is that it is difficult to duplicate the pressures and realities of actual decision-making on the job. The duplicate facilities and employing a special trainer is another disadvantage. 3) PROGRAMMED INSTRUCTION : This is a method where training is offered without the intervention of a trainer. Information is provided to the trainee in blocks, either in a book form or through teaching machine. After reading each block of material, the learner must answer a question about it. Thus program introduction involves (1) presenting questions (ii) allowing the person to respond (iii) providing feedback on accuracy of his / her answer (iv) if the answers are correct, the learner proceeds on the new block. 4) INDUCTION: Before a newly hired employee is trained in a company for the specific job, he should be welcomed as a new member of the organization. The first day of employment is long remembered by most of the people. Proper induction is therefore an integral part of the training process. By helping new employees to feel at home more quickly, it enables them to get the full benefit of job training. A good induction program has three parts (I) introductory information given informally or in group session in the H R Department. (ii ) Further information given by the new employees superior in the department about departmental facilities and requirements. (iii) A follow up interview several weeks after the employee has been on the job, given by either the superior or a representative of the personal / H R Department, to answer questions that the new employee may have and to repeat some of the earlier information for emphasis.
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5) APPRENTICE TRAINING: This is desirable in industries such as the metal trades, printing trades, building and construction, which require a constant flow of new employee who expect to become all round craftsmen. Since the training program is long and requires continual supervision, this method of training is expensive. Standard are rigid and are defined in an apprentice agreement that, in unionized firms, involves union acceptance. 6) JOB ROTATION: In this type of training assignments of jobs are rotated among employees generally employed in the same category / hierarchy but in different departments. The employees working in several departments time by time know the details of the various departmental objectives and requirements. The knowledge and productivity of the employee regarding various trades has enriched through this training. B) OFF THE JOB TRAINING 1) SIMULATION: Simulation duplicates the actual condition encountered on a job. It is an attempt to create a realistic decision making environment for a trainee. Simulation present likely problem situations and decision alternatives to the trainee. The important simulation techniques are (a) Case Study (b) Role Playing.
a) CASE STUDY It is a written description of an actual situation in business, which provokes, in the reader, the need to decide what is going on, what the situation really is or what the problems really are and what should we do. Taken from the actual experiences of organizations, these cases represent attempts to describe real problems that managers have faced. Trainees study the cases to determine problems, analyze cases, develop alternative solutions, select the best one and implement it. CASE STUDY AS A METHOD OF TRAINING TRAINING SPECIFICATION
1.
REQUIREMENTS Prepare the case study keeping in view the expected learning outcome, initiatives and guiding discussions. He / she clarify issues and supplies additional information, if and when required. Participants need to be actively involved in analysing the case in accordance with the guidelines suggested by the trainer. Some participants may require the assistant of the trainer to understand some of the situational variables and issues indicated in the case. Case sheets, A room large enough to seat two groups comfortably, black Board, flip charts and markers.
Trainers Role
2.
Participants Role
3.
Facilities, Resources And Equipments :
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b) Role play: It generally focuses on emotional or human relation issues rather than actual ones. The essence of role playing is to create a realistic situation, as in case study, and then have the trainees assume the parts of specific personalities in the situation. For example, a male worker may assume the role of female advisor, and the female supervisor may assume the role of male worker. Then both may be given a typical work situation and asked to respond as they expect others to do. The consequences are better understanding among others. In the role play, the participants should get first hand experience of the situations that they face on the job or real life. It is important that it reflects the true working conditions of the participants work life. Although the roles are defined through scripts, there is scope for the participants to develop their respective roles. The whole group has to be briefed about the role plays, the rules of playing it and the dos and donts of the role players. The role plays are of three types (I ) Simple role play (ii) Multiple role play (iii) Reverse Role play. Planning Role Play Steps i) Identify the problem. ii) Develop structure for the role play. iii) Assigning roles to the participants. iv) Developing materials for the exercise. v) Setting out play scene. vi) Setting out operating rules and norms. vii) Role briefing. 2) Sensitivity training Here organization tries to pick up some people from different departments. Around 15 participants are taken. They are taken away far from residence. Accommodation is provided in separate training centre. Duration of training is around two weeks. All the participants assemble in the training hall. There is no trainer presented here. After grouping participants start interaction. Gradually they are involved in more interaction about the company. There present are facilitator. He/she provokes them to take part in the interaction. It is process of development of individual by perceiving method. Change in attitude takes place when they come back to the original organization environment. Interpersonal relationship improvement is the best objectives of this training. This leads to internal development of the organization and improvement of work culture takes place. Here success depends upon facilitator who likes to coordinate the progress of training by participating as if he is a participator. 3) Management by objectives (MBO) Management by objective or management by result is an important training method was coined by Peter Drucker. It is an important technique of OD intervention. This process tries to improve the effectiveness of the organization and tries to build up team from different departments. In this process superiors seat with subordinates and decide jointly. It is a joint decision making process where the team tries to identify key result areas (KRA). These areas are where each particular department is capable of contributing to the effectiveness to do more or better. This programme has time
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limitation. So it is time bound. Thus, MBO is the process where superiors along with subordinates jointly decide on a quantified measurable time bound programme to be implemented in their respective key result areas. 4) Audio Visuals: Audio visuals include television slides, overheads, video tapes and films. These can be used to provide a wide range of realistic examples of job conditions and situations in the condensed period of time. But it is an one way communication. 5) Group Discussion: It can take the form of the whole group sitting together and discussing a topic. A group discussion aims at a structured but informal exchange of knowledge, ideas and perceptions among the participants on any issue, topic. Contributions are pooled together and examined in terms of their relevance and validity to the discussion objectives. If GD is planned and organized in a structured way and certain essential conditions are met, it can provide a highly enriching and stimulating experience. This can result in changes in behavioural patterns and actions if the participants are willing to learn from the interaction with others. The learning process is also concrete and observable.
6) MANAGEMENT GAMES A management game is a training method that deals with certain specific aspects of business or Administration. It is a simulated exercise representing the constraints and pressures of the day to day work environment of the participants. The participants are presented with information about operations of an organization marketing, finance, HRM, etc. They are grouped in functional teams to consider the sequence of events and problems and manage the operations. The task includes finding solutions to the problems, taking decisions and dealing with the people. Each team takes a decision consideration the data and information available to it, with in the broad parameters and objectives of the games The team analysis the out comes of the decision in the light of their effect on the situation and other events in operation. The consequence of the decisions is fed back to the team by the trainer. The team then proceeds to take further decisions to the new situation, events and circumstances. Thus a business game attempts to bring together various elements of practical decision making . 7) BRAIN STORMING Brainstorming is a process where an actual problem has been set up by the management. The problem is then put forward to the subordinates and they are called for generation of ideas regarding solving of the problem and decision making. All the ideas generated are accepted by the management in first course of time, how much wide it may be. Then management has to sort out the three or four appropriate ideas. Lastly the exact appropriate ideas is taken by management after analyzing its effects on organizational climate. Steps involved in Brainstorming i) Generation of ideas. ii) Amending ideas.
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iii) iv) v)
Posting all ideas on the Flipchart. Analysing ideas and their effects. Choosing of perfect idea and action planning.
8) Lecture as a method of training The lecture is, by designation, words spoken by the trainer. It is thus verbal symbol medium. This is the oldest method of training in which the trainer, by virtue of her knowledge and expertise in a field, presents orally, in a field, presents orally in a direct and unilateral manner the subject matter. It clearly implies one way communication. As a training method, the purpose of the lecture is in fact, specific and limited. In the continuum of information, understanding, knowledge, skills behaviour and attitudes, the lecture method is effective only where it enables to transmit or intellectual understanding as part of the learning process. For passing on knowledge it can be useful, but for developing skills, and for endangering behavioral changes, a lecture is not useful. In the lecture method the trainer becomes the center of orientation and remain in constant focus. It is important where number of participates are large in number. For the method to be successful and effective, the key factor is the trainer. It demands high levels of skills from her. The quicker the trainer is able to established her credibility with the group the better it is for the delivery of the lecture. Good lecturing skills are a perquisite for a good presentation. If the trainer is skilled in interacting with the audience and creating a climate suited to learning, the message will be effectively transmitted. Through introduction of participatory elements the lecture method can be transformed into a process of two way communication. There is no good reason why the participants cannot interrupt the trainer during the lecture and ask for clarification or raise a query. The trainer should not feel hesitated to the visual aids to emphasize highlight a point Handouts can also be provided for better learning. Lecturer as a method of training Training Specification i) Trainers Role Requirements Imitator main speaker in full control of the session has the option of involving the audience through question use of audio visual aids Must inters of the group kept alive. Participants are listeners. Their interest and motivation in the lecture depends on the style of the speaker lecture of contents of the lecture. A room large enough to comfortable accommodate the participants. Black board, chart paper markers Handouts support materials Projects LCD display speaker. Actual time for delivery of the lecture depends on the trainer keeping in view the group and the environment.
2) Participants role
3) Facilities resource and equipment :
4) Time allocation
Impediments to effective training:
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1. Attempt to teach quickly. 2. Trying to teach too much. 3. Viewing all trainees as the same. 4. Not providing time to practice. 5. Reinforcement, encouragement and reward , when missing 6. Not frightening the employees 7. Not updating the subject knowledge. 8. Not preparing the course material as per standard.
Unit 6
THE PERFORMANCE APPRAISAL PROCESS A. Communicate the standards : Performance appraisal involves at least two parties; the appraiser who does the appraisal and the appraise whose performances is being evaluated. Both are expected to do certain things. The appraiser should prepare job descriptions clearly; help appraise set his goals and targets, analyse results objectively, offer coaching and guidance to appraise whenever required and reward good results. The appraise should be very clear about what he is doing and why he is doing. For this purpose, the performance standards must be communicated to appraises and their reactions be noted down initially, if necessary, these standards must be revised or modified. As pointed out by De Cenzo and Robbins, too many jobs have vague performance standards and the problem is compounded when these standards are set in isolation and do not involve the employee. B. Measure actual performance. After the performance standards are set and accepted, the next step is to measure actual performance. This requires the use of dependable performance measures, the ratings used to evaluate performance. Performance measures, to be helpful must be easy to use, be reliable and report on the critical behaviours that determine performance. Four common sources of information which are generally used by managers regarding how to measure actual performance; personal observation, statistical reports, oral reports and written reports. Performance measures may be objective or subjective. Objective performance measures are indications of job performance that can be verified by others and are usually quantities. Objective criteria include quality of production, degree of training needed and accidents in a given period, absenteeism, length of service etc. Subjective performance measures are ratings that are based on the personal standards of opinions of those doing the evaluation and are not verifiable by others. Subjective criteria includes ratings by superiors, knowledge about overall goals, contribution to sociocultural values of the environment. It should be noted here that objective criteria can be laid down while evaluating lower level jobs. Which are specific and defined clearly. This is not the case with middle level positions that are complex and vague.
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C. Compare actual performance with standards and discuss the appraisal : Actual performance may be better than expected and sometimes it may go off the track. Whatsoever be the consequences, there is a way to communicate and discuss the final outcome. The assessment of another persons contribution and ability is not an easy task. It has serious emotional overlones as it affects the self-esteem of the appraise. Any appraisal based on subjective on subjective criteria is likely to be questioned by the appraise and leave him quite dejected and unhappy when the appraisal turns out to be negative. D. Taking corrective action, if necessary : Corrective action is of two types. The one which puts out the fires immediately and other one which strikes at the roof of the problem permanently. Immediately action sets things right and get tings back on track whereas the basic corrective action gets to the source of deviations and seeks to adjust the difference permanently. Basic corrective steps seek to find out how and why performance deviates. Methods of Performance Appraisal The performance appraisal methods may be classified into three categories, as shown in Figure 16.1: Performance Appraisal Techniques Individual evaluation methods 1. Confidential report 2. Essay evaluation 3. Critical incidents 4. Checklists 5. Graphic rating scale 7. Behaviourally anchored rating scales. 8. Forced choice method. 9. MBO Individual Evaluation Methods Under the individual evaluation methods of merit rating, employees are evaluated as single individual at a time without comparing them with other employees in the organisation. a. Confidential report : It it mostly used in governmental organisations. It is a description report prepared, generally at the end of every year, by the employees immediately superior. The report highlights the strengths and weaknesses of the sub ordinate. The report is not databased. The impressions of the superior about the subordinate merely recorded there. It does not offer any feedback to the appraise. The appraise is not very sure about why his ratings have fallen despite his best efforts, why others are rated high when compared to him, how to rectify his mistakes, if any, on what basis he is going to be evaluated next year, etc. since the report is generally not made public and hence no feedback is available, the subjective analysis of the superior is likely to be hotly contested. Multiple - person evaluation methods Ranking Paired comparison Forced distribution Other methods Performance Tests Field technique review
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In recent years, due to pressure from courts and trade unions, the details of a negative confidential report are given to the appraise. b. Essay evaluation : Under this method, the rater is asked to express the strong as well as weak points of the employees behaviour. This technique is normally used with a combination of the graphic rating scale because the rater can elaborately present the scale by substantiating an explanation for his rating. While preparing the essay on the employee, the rater considers the following factors : (i) Job knowledge and potential of the employees (ii) Employees understanding of the companys program, policies, objectives, etc, (iii) The employees relations with co-workers and superiors (iv) The employees general planning, organising and controlling ability, (v) The attitude and perceptions of the employee, in general. Essay evaluation is a non-quantitative technique. Thie method is advantageous in at least one sense, i.e. the essay provides a good deal of information about the employee and also reveals more about the evaluator. The essay evaluation method however, suffers from the following limitations. It is highly subjective, the supervisor may write a biased essay. The employees who are sycophants will be evaluated more favourably then other employees. Some evaluators may be poor in writing essays on employee performance others may be superficial in explanation and use flowery language which may not reflect the actual performance of the employee. It is very difficult to find effective writers nowadays. The appraiser is required to find time to prepare the essay. A busy appraiser may write the essay hurriedly without properly assessing the actual performance of the worker. On the other hand, appraiser takes a long time, this becomes uneconomical from the view point of the firm, because the time of the evaluator (supervisor) is costly. c. Critical incident technique : Under this methods, the manager prepares lists of statements of very effective and ineffective behaviour of an employee. These critical incidents or events represent the outstanding or poor behaviour of employees on the job. The manager maintains logs on each employee, whereby the periodically records critical incidents of the workers behaviour. At the end of the rating period, these recorded, critical incidents are used in the evaluation of the workers performance. d. Checklists and weighted checklists : Another simple type of individual evaluation method is the checklist. A checklist represents, in its simplest form, a set of objectives or descriptive statements about the employee and his behaviour . It the rather believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. A more recent variation of the checklist method is the weighted list. Under this the value of each question may be weighted equally or certain questions may be weighted more heavily than others. The following are some of the sample questions in the checklist. Is the employee really interested in the task assigned? Is he respected by his colleagues (co-workers) Does he give respect to his superiors? Does he follow instructions properly? Does he make mistakes frequently? Yes / No. Yes / No. Yes / No Yes / No. Yes / No.
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A rating score from the checklist helps the manager in evaluation of the performance of the employee. The checklist method has a serious limitation. The rather may be biased in distinguishing the positive and negative questions. He may assign biased weights to the questions. Another limitation could be that this method is expensive and time consuming. Finally, it becomes difficult for the manager to assemble, analyse and weigh a number of statements about the employees characteristics, contributions and behaviours. In spite of these limitations, the checklist method is most frequently used in the employees performance evaluation. e. Graphic rating scale : Perhaps the most commonly used method of performance evaluation is the graphic rating scale. Of course, it is also one of the oldest methods of evaluation in use. Under this method, a printed form, as shown below, is used to evaluate the performance of an employee. A variety of traits may be used in these types of rating devices, the most common being the quantity and quality of work. The rating scales can also be adapted by including traits that the company considers important for effectiveness on the job. A model of a graphic rating scale is given below. Table 16.5 : Typical Graphic Rating Scale
Employees Name .. Department .. Date .. Unsatisfactory Quantity of work volume of work under normal working conditions Quality of work neatness, thoroughness and accuracy of work Knowledge of job A clear understanding of the factors connected with the job. Attitude exhibits enthusiasm and cooperativeness on the job Dependability Conscientious, through, reliable, accurate, with respect to attendance, relief, lunch breaks, etc. Cooperation Willingness and ability to work with others to
Job file . Rate ..
Fair
Satisfactory
Good
Outstanding
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produce desired goals,
From the graphic rating scales, excerpts can be obtained about the performance standards of employees. For instance, if the employee has serious gaps in technical professional knowledge (knows only rudimentary phases of job); lacks the knowledge to bring about an increase in productivity, is reduction to make decisions on his own (on even when the makes decisions they are unreliable and substandard), declines to accept responsibility, fails to plan ahead effectively, wastes and misuses resources; etc, then it can safely inferred that the standards of the performance of the employee are dismal and disappointing. The rating scale is the most common method of evaluation of an employees performance today. One positive point in favour of the rating scale is that it is easy to understand, easy to use and permits a statistical tabulation of scores of employees. When ratings are objective in nature they can be effectively used as evaluators, The graphic rating scale may however suffer from a long standing disadvantage, i.e., it may be arbitrary and the rating may be subjective. Another pitfall is that each characteristic is equally important in evaluation of the employees performance and so on. Behaviourally anchored rating scales: Also known as the behavioural expectations scale, this method represents the latest innovation in performance appraisal. It is a combination of the rating sale and critical incident. Techniques of employee performance evaluation. The critical incidents serve as anchor statements on a scale and the rating form usually contains six top eight specifically defined performance dimensions. The following chart represents an example of a sales trainees competence and a behaviourally anchored rating scale. Table 16.6 An Example of Behaviourally Anchored Rating Scale (BARS) Performance Extremely good 7 Points Behaviour
Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country. Can expect to initiate creative ideas for improved sales. Can expect to keep in touch with the customers throughout the year. Can manage, with difficulty, to deliver the goods in time. Can Expect to unload the trucks when asked by the supervisor. Can expect to inform only a part of the customers Can expect to take extended coffee breaks and room around purposelessly.
Good Above average Average Below Average Poor Extremely poor
6 5 4 3 2 1
How to construct BARS? Developing a BARS follows a general format which combines techniques employed in the critical incident method and weighted checklist ratings scales. Emphasis is pinpointed on pooling the thinking of people who will use the scales as both evaluators and evaluates.
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Step I : Collect critical incidents ; People with knowledge of the job to be probed, such as job holders and supervisors, describe specific examples of effective and ineffective behaviour related to job performance. Step II : Identify performance dimension s. The people assigned the task of developing the instrument cluster the incidents into a small set of key performance dimensions. Generally between an ten dimensions account for most of the performance. Examples of performance dimensions include technical competence, relationships with customers, handling of paper work and meeting day to day deadlines. While developing varying levels of performance for each dimension (anchors), specific examples of behaviour should be used, which could later be scaled in terms of good, average or below average performance. Step III. Releasification of incidents : Another group of participants Step III: Reclassification of incidents : Another group of participants who are knowledgeable about the job is instructed to retranslate or reclassify the critical incidents generated (in Step II) previously. hey are given the definition of job dimension and told to assign each critical incident to the dimension that it best describes. At this stage, incidents for which there is not 75 per cent agreement are discarded as being too subjective. Step IV : Assigning scale values to the incidents: Each incident is then rated on a one to-seven or oneto-nine scale with respect of how well it represents performance on the appropriate dimension. A rating of one represents ineffective performance; the top scale value indicates very effective performance the second group of participants usually assigns the scale values. Means and standard deviations are then calculated for the scale values assigned to each incident typically incidents that have standard deviations of 1.50 less (on a 7-point scale) are retained. Step V : Producing the final instrument: About six or seven incidents for each performance dimension - all having met both the retranslating and standard deviation criteria - will used as behavioural anchors the final BARS instrument consists of a series of vertical scales (one for each dimension) anchored (or measured) by the final incidents. Each incident is positioned on the scale according to its mean value. Because the above process typically requires considerable employee participation, its acceptance by both supervisors and their subordinates may be greater. Proponents of BARS also claim that such a system differentiates among behaviour, performance and result and consequently is able to provide a basis for setting developmental goals for the employee. Because it is job-specific and identifies observable and measurable behaviour, it is a more reliable and valid method for performance appraisal. Decotis concluded that: It may be time to quit hedging about the efficacy of behavioural scaling strategies and conclude that this method has no clear-cut advantages over more traditional and easier methods of performance evaluation. g. Forced choice method: This method was developed to eliminate bias and the preponderance of high ratings that might occur in some organization. The primary purpose of the forced choice method is to correct the tendency of a rater to give consistently high or low ratings to all the employees. This method makes use of several sets of pair phrases, two of which may be positive and two negative and the rater is asked to indicate which of the four phrases is the most and least descriptive of a particular worker. Actually, the statement items are grounded in such a way that the rater cannot easily judge which statements apply to the most effective employee. the following box is a classic illustration of the forced choice items in organizations.
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Table 16.7: Forced Choice items 1. A B C D 2. A B C D Least Does not anticipate difficulties Grasps explanations easily and quickly Does not waste time Very easy to talk to Least Can be a leader Wastes time on unproductive things At all time, cool and calm Smart worker Most A B C D Most A B C D
The favourable qualities earn a plus credit and the unfavourable ones earn the reverse the worker gets over plus when the positive factors override the negative ones or when one of the negative phrases is checked as being insignificantly rated.
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Unit 7
Employee welfare, Health and Safety Working Environment Working life and its quality in the industrial and business organisation is directly and continually affected by the kind of environment prevalent in the organisation. Enviomment include physical, social and mental conditions prevailing at the workplace which directly or indirectly affect the work behaviour and performance of the people at work. Studies have been conducted by experts to know the repercussions of the environment on work and its performance. Physical working environment needs improvement to increase efficiency of workers. Employees and managers both are in favour of improvement in working environment to improve performance and boost up morale of workers. The executive committee of National Labour Organisation has recommended a strict vigilance over the industrial units to follow all relevant provisions contained in the legislations regarding safety and welfare. International Labour Organisation is also of the view that favourable working conditions are necessary to improve performance and see that the workers work better without stress and strain. Working Conditions Productivity goes up if working conditions or environment at the workplace is improved favourably. Favourable working conditions save time, wastage of materials and man hours and improve efficiency. The following are the working conditions that affect the working life and its quality. 1. Clean environment: Keeping the surroundings at the working place is very essential for health. Rooms, staircases, varandahs, shopfloors etc. should be cleaned daily to keep them dirt and dust-free. All the essential and necessary precautions should be taken to prevent unhygienic climate at the workplace. All the insects, rats, pests etc. should be destroyed to keep the environment clean. Unclean and dirty environment is an invitation to diseases. It should be got rid of. Keeping the environment clean is a daily routine.
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2. Lighting : Good lighting is an indication of pleasant atmosphere. It keeps the people cheerful and improves productivity. The Factories Act 1948 has made provisions for good lighting. Section 71 of it reads, "In every part of a factory where workers are working or passing there shall be provided and maintained sufficient, suitable lighting, natural and artificial or both." The workplace should be properly illuminated. The colour of walls should be properly chosen for more reflection of light. Light green, sky blue and grey colour reflect more light as compared to red. According to Factories Act 1948 the glare direct or reflected and shadows causing eye strain or any risk of accident to any worker should be adequately controlled. Proper illumination at the workplace has its benefits, which should be taken care of. The following are some of the broad features of illumination. 1. The entire work area should be uniformly illuminated. Indirect lighting produces uniform illumination. 2. Fluctuations in illumination, heavy shadows should be stopped. They are the immediate causes of eyestrain and fatigue. 3. Polished objects should be removed from the workplace as they reflect glaring light causing eyestrain. 4. At the factory different kinds of tasks are performed. They require light of different intensities. These requirements must be fulfilled as per the recommendations made by Illuminating Engineering Society Committee way back in 1958. Proper lighting improves worker's efficiency and boosts up his morale. He must see the objects clearly. It improves his workmanship. 3. Temperature and ventilation : A comfortable level of temperature should be maintained to increase the efficiency of the worker and quality of work. Arrangement for fresh flow of air should be made and steps should be taken to maintain comfortable level of temperature and humidity. The Factories Act 1948 has also recommended for adequate ventilation for circulation of fresh air and temperature for reasonable, comfort so that injury to health be prevented. Circulation of fresh air removes congestion at the workplace Lack of proper ventilation becomes a cause of physical trouble to the employee. He may develop headache, or feel tired and sleepy. It will also change the composition of air causing employees difficulty in breathing. Ideal level of humidity i.e. between 60% to 70% should be maintained. Air conditioning can be used for circulation of fresh air and maintaining ideal level of humidity. Exhaust fans can be used to drive away hot air, fumes, dust etc. from the shops. When people work in adverse conditions, their productivity substantially goes down resulting into economic losses to the organisation. Organisation must take all possible efforts to remove ill effects of heat and temperature and maintain and provide the comfortable working environment. The legal provisions in this regard must be followed strictly. Employee unions can play a significant role in forcing the management to provide better working environment. 4. Noise : Noise is undesired sound within or outside the workplace. High intensity noise adversely affects the employees physically and psychologically. It disturbs their attention. They commit mistakes in their work. It is, therefore, necessary to reduce the noise at the workplace to increase their efficiency. Mechanisation has increased the noise at the plant. Noise may cause damage to hearing and oral communication. Studies have revealed that reduction in noise can increase the efficiency of worker, reduce errors. Less noise decreases turnover and increases their performance.
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Noise can be external and internal. The external noise comes from outside the plant. It gets in through doors and windows and other outlets. The external noise cannot be stopped. It can be prevented by having double doors, sound proof walls and glass panes. Location of plant should be chosen at such a place where external noise is minimum. Internal noise is created by running of machines, discussions and talks among employees, conversation, movement of employees, visitors, telephone calls, call bells etc. Internal noise is controllable. It can be controlled by use of absorbent material for walls and ceilings. Employees can be requested to talk in low tone or minimum when need arises. Workers working over noise producing machines can be provided with earphones. New technology has brought in remote controls. They can be used for running machines. It is yet to become routine. Whatever devices we use, noise free environment can not be achieved. Noise is a kind of pollution. Sincere efforts should be made to reduce it to improve working life and its quality. Noise cannot be completely eliminated. In general, employees become used to it. Some of the employees cannot tolerate it. Noise, which is a part of work, can be easily tolerated. Continuous noise is more tolerable than that of intermittent one. 5. Working hours : Employees and workers are human beings. They are an asset to the organisation. They should be treated with dignity. Odd hours of working should be avoided. Now in the industries a due care is being taken in this regard. The efforts are underway to improve the quality of worker and working. In western countries six-day working hours is in practice. Forty hours of work per week is being considered ideal in recent times. In our country central government offices are working for five days per week while state governments have declared second and fourth Saturday as holidays in industrial sectors. Working Life and its Quality Working is for six days and in three shifts. In some of the factories a weekly off day is mutually adjusted but production goes without interruption for full seven days. In some of the factories confirmed employees are given Sunday as weekly holiday but the temporary staff have no such holiday. Seven days working has its problems. Machines are continuously an operation so there arises problem of their maintenance frequently. In factories working hours are forty-eight. If an employee is asked beyond this, over time wages as per rules have to be paid to them. The long working hours create many problems. They must be regularised to avoid the following. 1. 2. Long working hours are the immediate cause of fatigue. They may cause accidents and the quality of work will suffer.
3. Long working hours disrupt the family and the social life of the worker. He gets less leisure time and cannot participate in family and social activities. It kills his interest and potential; hence leading to deterioration of working life and its quality. There are factories where continuous work for twenty-four hours goes on in three shifts are rotated among workers. Workers differ in their opinions about the shifts. Some like rotating shifts. Some workers do not like day shifts. They prefer night shifts. Some of the workers prefer permanent day shifts. Choice may be given to the worker in selecting the shifts. 6. Dust : The dust is another element which affects the working life. It is difficult to completely check the entry of dust into the workplace. The proportion of dust is more in atmosphere where jute and textile mills are located. The dust has ill effects on the health of the employees as well as machines both. It reduces the life of machines also. It is, therefore necessary to avoid entry of dust into the
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factory. Efforts must be made to maintain dust-free environment. Machines, tools, and equipments should be regularly cleaned. So also office records, walls and ceilings of the walls should be cleaned and keep them dust-free. Dust pollutes environment and adversely affects the health. Air conditioning to some extent checks the entry of dust into the rooms. Cleanliness should be adopted as a principle for keeping the dust and disease away. In addition to the above, adequate space for keeping tools and equipments and proper seating arrangements must be provided. This will provide uninterrupted and free movement and comfort to the employees. Welfare Measures A number of welfare measures are undertaken by every plant to keep healthy working conditions and accident free environment. Maintaining workers' health must be given priority. There are many legal provisions made in this regard. The Factories Act 1948 has made many provisions in this respect. The Act has made several provisions to maintain healthy working environment. There are elaborations in the Act in respect of how to maintain hygienic conditions at the workplace. Section 11 of the Act speaks about cleanliness, Section 12 about disposal of wastes and effluents, Section 13 regarding temperature and ventilation Section 14 m respect of dust and fumes, Section 15 about artificial humidification Section 16 about overcrowding, Section 17 about lighting, Section 18 in respect of drinking water Section 19 regarding latrines and urinals, Section 20 about spittoons, Section 42 to 48 deal with provisions for washing, storing, and drying facilities, facilities for first aid, sitting canteen, shelters, rest rooms, toilets, sanitation and conservation etc. Even after these legal provisions which are to be followed in the factories and plants where people are working We find horrid conditions prevailing in several factories in our country. Several studies have been made by the scholars in this respect but to their utter disgust they came to know that the people work under subhuman conditions. These facilities must be provided to maintain the dignity of human beings. In many factories there are no separate latrines and urinals for female workers. Workers have to work for more than 12 hours a day. In some of the factories workers have to work in standing position. Management of the organisations must pay immediate attention for providing all welfare facilities to the people at work. This will not only create healthy atmosphere at the workplace but also increase efficiency of workers thereby increasing their productivity. In our country we have excellent legislation but poor facilities. People hesitate to follow the law. Employees unions should take lead in this respect and force the management to make available all the facilities for the employees working in the plants and factories. These facilities are essential to enhance the efficiency and productivity of the workers. Accidents Many employees work in the factories on various machines in varying working conditions. They meet with accidents while working. Management must provide them adequate safety measures to reduce accidents. Work comes to halt when accidents occur. It may injure the employee sometimes seriously. Employee may die even. A slight carelessness on the part of the employee at the place of work may land him in trouble. According to R.P. Blake accidents are, "unplanned or unintended occurrences that interrupt or interfere with work activity." According to Factories Act 1948 industrial accident is, "an occurrence in an industrial establishment causing bodily injury to person which makes him unfit to resume his duties in the next 48 hours." Accidents can occur at any time. An industrial accident is the one that occurs at the place of work and during a course of employment. Self-inflicted injuries cannot be treated as accidents. Several thousand accidents occur every year. Accidents rob an
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organisation from man-hours and production. It suffers a loss. This loss may go to any extent. It is, therefore, necessary for an organisation to take all essential steps to prevent accidents at the plants. There are many reasons for occurrence of accidents. Accidents suddenly occur. Occurrence of accidents varies from individual to individual. Some people meet with accidents frequently and some are not. This tendency is known as accident proneness. T.W. Harell has explained accident proneness as, "the continuing tendency of a person to have accidents as a result of his stable and persisting characteristics." Such employees are known as accident-prone employees or accident repeaters. Frequency of accidents depends upon personal predispositions of the employee. The accident proneness also depends upon health condition of an individual which can make him liable to more accidents, e.g.: a driver driving a car with defects in his eyesight, a machine operator with high blood pressure or keeping in poor health, a person having mental disorder etc.
Manager's Responsibility Manager is the person who is of immense help to the employees to save them from committing accidents. It is easy to achieve a goal of safety. Manager must motivate his people for safety. He must explain them the importance of safety in their life and at the workplace. He should take active interest in guiding and directing people to follow safety rules and attain the goal of accident free shop. He should pursue the top management to hold safety weeks, film shows, meetings, exhibitions, competitions in respect of safety, reward the employees who have not committed accidents etc. Employees should be encouraged to participate in discussion on safety. All these activities manager should plan and coordinate with the help of the people working under him. Causes of Accidents in Industries There are many causes for accidents that can be cited. Anything can cause accident if not properly handled. The following are some of the causes. 1. Some industries have inherent hazards such as mining, construction, transport, etc. These are accident prone industries. Slight mistake on the part of employee can become a cause of accident. 2. Inadequate lighting, haphazard placing of tools and equipments etc. can cause collision resulting into a serious accident. 3. 4. Afternoon and night shifts are more accident prone than day shift. Slippery floors and staircase can cause serious accidents.
5. Excess noise, dirty environment, naked electric wires, fatigue, too low or too high temperature, humid atmosphere, etc. are also the causes of accidents in industries. 6. Unsafe storing of materials, sharp edges, inferior and low quality machines, overloading, inadequate ventilation, non use of safety equipments such as shoes, goggles, gloves, hats, etc. can cause accidents. 7. Pollution of any kind, uncovered, unfenced machines and equipments, excessive heat and dust are also the immediate causes of accidents.
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8. Defective handling of objects, defective use of tools and equipments, defective machines, gas, etc .can cause accidents. 9. Human feelings and emotions or imbalance such as frustration, unstable mind, hostility, anger, depression etc. are also the causes of accidents. 10. Intoxication during work can cause accidents.
11. Lack of knowledge, ignorance, lack of communication, lack of safety, training, defective plant layout etc. are the causes of accidents. 12. The overconfidence of the employee of doing the work without proper safety measures may land him in trouble. Negligence, carelessness at work may also cause accidents. At the workplace human and non-human factors can cause accidents. The need is to take care of oneself, safety provisions and safety education to prevent accidents. This is the responsibility of management and employees both. No one can blame the other. Both should work together to provide adequate safety measures to ensure accident free environment at the plant. Accidents result in stoppage of work and loss of man-hours ultimately resulting in losses. Organisation has to pay compensation to the employees who are directly, or indirectly affected by the accidents. Damage to the machines, cost of training to the new workers again increase the financial burden of the organisation. Employees are affected adversely by the accidents. Their morale goes down. They lose confidence. They are physically and mentally affected. The society is to suffer from this casualty. It is, therefore, necessary to take all essential steps and measures to prevent accidents and safeguard the interests of the organisation, employees and society. Accidents affect working life and its quality. Safety Management and Prevention of Accidents : The government have made several legal provisions to ensure safety of human life in industrial organisations. The industrial establishments are also making all out efforts in this regard but still accidents occur. The causes are pointed above. The management of safety should be effective. The approach of management towards safety at workplace varies from plant to plant and organisation to organisation. Their success in implementing the safety programmes also differs. These variations are because of differences in social, environmental conditions and the work styles. Hundred per cent success in administering safety programme is ruled out. Maximum success can be achieved if safety programmes are effectively implemented. Some of the organisations are managing safety programmes effectively and performing well. All organisations must make all out efforts to-prevent accidents at the workplace and safeguard the lives and health of the employee working there. The following measures can be taken to prevent accidents at the workplace. 1. Strict Implementation of legal security measures : Every plant must follow strictly the security measures as contained in the Factories Act 1948. It has given vivid and detailed description of the measures to be adopted by the industries for prevention of accidents. These provisions are not met in many factories. They knowingly violate them. All the provisions of the factories Act 1948 are binding on each unit and they should strictly adhere to them. 2. Safety education: Safety education is meant for educating employees and executives to create safety conciousness among them. Safety education can be given through formal lectures, film shows, bulletins, posters, slogans, signs,etc. Safety campaigning also helps a lot here. Safety slogan contests can be held. Safety weeks can be celebrated. Some organisations facilitate workers who work safely.
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3. Safety training : Safety training should become a regular and compulsory activity of every organisation big or small. Working life and its quality can be improved through training imparted to managers, supervisors and workers. In some of the organisation training engineering departments are maintained to provide safety training to the workers and supervisors. Newly recruited workers badly need safety training. All managers, supervisors, workers and trade union leaders should be involved and participate actively in training programmes of safety. In training programmes all possible causes of accidents and the methods to avoid them or prevent them and the use of hard hats, safety goggles, shoes, uniforms and other safety measures should be told. They must be taught through training to inculcate the habit of being safe while working and do not take any undue risk. Safety training improve their job skill and knowledge. They should be made aware of safety and health and their importance to themselves and to the organisation and to the quality of working life. Safety training promotes safety and health by telling employees and showing them how to do their jobs in right manner. Such training should become a regular activity of plant life to save the employees from fatal accidents and educating them to use safety equipments. 4. Management's policy : Management of the organisation should be committed to safety and health and must promote safety programmes, education and training and should invite involvement of all in this regard. It should have a clear-cut policy on health and safety of its employees and managers. Its policy should include the strict adherence to legal provisions in respect of safety and health. The managers must be directed to lead their subordinates in providing safety measures and motivate the workers to follow them. There should be written policy statement in regard to safety and health to avoid any confusion or misunderstanding. Chief executives and managing director must take personal interest in the management of safety and health and should discuss the matter with other managers and executives and invite suggestions to make necessary improvements in respect of safety provisions. Inadequacies should be immediately removed. 5. Safety organisations and committees : Safety organisations and committes can be Working Life and its Quality set up at the plant to ensure complete safety and health for all. In many industrial establishments safety organisations consisting of engineering staff and number of officers are set up to look after the safety and health provisions. This organisations has a safety engineering department which is assigned with the responsibility of inspection and control of safety arrangements. It also provides medical care through well-equipped occupational health centre havmg a qualified medical officer as the chief. The safety committee can be set up consisting of the representatives of workers and management for implementing safety programmes in the plant. Worker's union should get involved in safety and health programmes run in the plant. Union's involvement in safety programme is considered essential and is of immense importance in attaining success of running it. It also creates healthy environment of workers participation in health and safety management, which helps in creating better industrial relations at plant level No safety and health programmes can be successful without the help and active interest of the staff, workers and executives of the organisations. Their support plays a key role in promoting safety and health programme and preventing accidents at the workplace. Hence their involvement is very essential. Managerial leadership can do much in this reeard Leaders must motivate their subordinates and workers working under them to actively participate in safety programmes to make them success. Government is also playing active role in safeguarding health and safety of the employees working in industrial establishments, from industrial hazards and accidents National Safety Council was set up in the yearl966. The aim of the council is to promote safety awareness among workers and to prevent accidents. It also arranges lectures conferences and programmes on safety and health. Many corporate bodies, individuals and workers union's are the members of the council. It celebrates National Safety
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Day throughout the country every year. Government has also instituted a National Safety Award in 1965. Occupational Health A healthy person is one who is physically and mentally fit and is socially respected Many employees are working together in the plants and factories. Taking care of their health becomes important for their maximum utilisation. They must therefore be protected from the hazards and diseases related to their occupation. Occupational diseases are work related diseases. To increase the efficiency of the employees at the plant they should be protected from the occupational diseases. Occupational diseases are caused by the conditions of work. The manager's prime responsibility is to protect workers and employees of the plant from occupational or work related diseases. It will increase efficiency and reduce absenteeism. The following are some of the diseases related to work or occupation 1. Skin disorder: It is caused in chemical industries because of chemical reaction. The effect is limited to the skin in most cases but it can take a bad shape in some of the cases 2. Cardio vascular disorder : This is also caused in chemical industries. Some of the chemicals used can cause this disease. 3. Diseases related to respiratory tract: Breathing of contaminated air at the plant may cause these diseases. J 4. Neuromuscular disorder: Some of the chemicals enter the body through breathing affecting central nervous system leading to neuromuscular disorder. 5. 6. 7. Occupational cancer: The chemicals namely carcinogens cause cancer. Pneumoconiosis : This is caused due to breathing of inorganic dust at the plant. Asthma : Caused due to exposure to allergic dust, or fumes or gases at the plant.
8. Pneumonitis : It is caused because of breathing of sulphur dioxide gas and phosgene It affects severely. 9. 10. 11. Musculo skeletal disorders: Lead and fluorides are the main causes of this disorder. Hearing impairment: Excessive and high tone noise is the cause of this disability. Lungs related diseases : Tuberculosis, pneumonia, influenza can be caused in many industries.
Employees at the plant have to work in contact with several chemicals, metals drugs solvents, etc. which adversely affect the health of the employees. The need is to detect and evaluate the disease. If the employee sees, the symptoms of some disorder or disease he must rush to the physician for help then it becomes easy to cure it. At the plant employees must be educated on the occupational or work related diseases and they should be told about the symptoms of various diseases that mostly affect the employees at the plant. On detection of any disease complete care needs to be taken to cure the disease Proper management to prevent occupational diseases should be established. Employees should be medically examined at a regular interval and the record of their health should be maintained First aid is the most important medical requirement. It should be made available forever in every plant. Establishing plant health unit can help a lot in this regard. It is essential to keep the employees in good health because health is wealth. Healthy employees speak for healthy plant. It is not only
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employees suffer from diseases at the plant; executives and managers also fall a prey to the various diseases. Anyone can suffer from any disease It is not that specific category of persons suffer from the diseases. The managers and executives usually suffer from hypertension, depression, coronary heart diseases, diabetes, bronchitis ulcers, etc. These diseases cannot be related to work but the executives are under constant stress at the workplace. They become alcoholic and the diseases they fall victim are listed above. These diseases can be related indirectly to their work. The executives don't take exercise, they don't eat properly, they are under stress and drink excessively at times therefore they are more prone to diseases. The change in their life style also becomes the cause of their poor health and proneness to diseases. They travel excessively with laptop computers. This also becomes a cause for their ailment. The profession of executive itself is a cause for disease. Discharging managerial duties put them under lot of stress resulting into many physiological changes and develop into high blood pressure, heart trouble, diabetes etc They also need to be examined medically at regular intervals to keep the executives of the company in good health to increase their efficiency. The executives must also look after their health and should enjoy family life by spending some time with them and participating m the social function to ease their tension at the workplace. Organisations must also take enough care of their valued human resources by giving them timely medical aid and keeping them healthy. Fatigue : Fatigue is yet another cause of reduced ability of the employees. A feeling of weariness and tiredness are the symptoms of the fatigue. It may cause because of long and continuous work. It reduces the ability to work. Fatigue is defined as "a reduction in ability to work because of previous work". The reduction in ability to work is caused by variety of changes in the body. They are psychological, physiological, and chemical. The person may feel tired and weary leading to decline in quality and quantity of work. Tiredness and weariness are not the only factors responsible for creating a feeling of fatigue. There are many other factors that are responsible for creating a feeling of fatigue. All the factors activate together and create the feeling of fatigue. The problem of fatigue may also be related to the attitude, outlook, physical factors, environment, emotions, mental abilities etc. So to say it involves the whole organism. According to B. Musico, "fatigue is a condition caused by activity in which output produced by that activity tends to be relatively poor and degree of fatigue tends to vary directly with the poorness of the output". The fatigue is an altered psychological and physichological state in relation to the status of recovery or normal capacity. According to D.B. Dill, "fatigue is not an entity but merely a convenient word to describe a variety of phenomena". Fatigue is caused from all kinds of work. Physical fatigue is caused due to sheer physical exertion. An Italian scientist Angels Mosso through his study of ergograph tries to establish this fact. According to him if a fatigued muscle is forced to work, the period of recovery of the muscle is prolonged. Another researcher Vernon has developed a variation of ergograph known as 'hand dynamometer'. His studies show that the introduction of rest pauses increase the capacity to work. Crowden has classified industrial work (1932) into three categories, (1) heavy muscular work, (2) moderately heavy work, (3) light speed work. In one of his studies on energy expenditure on a 45' wheel borrow operation, he estimated that about 8 per cent of worker's energy was spent in raising and lowering the handle, 22 per cent in attaining wheeling speed and 70 per cent in the run itself. He pointed out that tremendous amount of worker's energy could be saved if the running borrow is stopped only once. Effect of fatigue can be visible on productivity. It can be seen through the following diagram: The work curve A B shows that production increases during early hours then remains constant for few hours and starts declining during later hours. The decrease in the production reflects the presence of industrial fatigue.
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Factors that create fatigue : It is believed that any muscular work even that of sitting, results in fatigue if the work of muscles and expenditure of energy are at faster rate than its recovery. Different conditions in different works lead to loss of energy and fatigue. Those factors are briefed below. (1) Long working hours : When the working hours are long the workers get exhausted and production goes down. Production is more during short working hours and less during long working hours. (2) Rest: Fatigue increases if workers have to work continuously without adequate rest. Rest pause reduce fatigue. (3) Temperature : Inadequate room temperature also results in fatigue. Too hot or too cold both lead to fatigue. (4) Illumination : Fatigue increases if the light in the working hours is inadequate.
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Unit 8
Industrial Disputes and Industrial Relations. Human resources are the human beings first and resources later. These resources are governed by human mind. Human mind is a storehouse of thoughts that may be good, or bad or the evil. Industry is a place where lot of human minds is at work. They think in different ways. The clash of interests leads to disputes. These disputes are related with place of work or industries, they are known as industrial disputes. It takes seconds for eruption of dispute but requires months and years to resolve. Industrial peace is imminent for speedy industrial growth. It can be achieved through cordial relations between workers and management. But in practice there is a yawning gap between management and employees and their relations go on souring giving rise to industrial disputes. Industrial dispute can take any form like strikes, demonstration, gheraos, lockouts, picketing etc The Industrial Disputes Act, 1947 defines an industrial dispute as, "any dispute or difference between employers and employers, or between employers and employees, or between employees and employees, which is connected with the employment, or non employment or the terms of employment or with the conditions of work of any person." Industrial dispute can take place at any time. It is the cause of employee dissatisfaction. It is the sign of industrial unrest. When the relations between management and employees are not smooth there is bound to be a confrontation leading to industrial dispute. It may take any form organised or unorganised. Organised from of industrial dispute may lead to strike, gherao' demonstrations, boycott etc. but unorganised form of dispute leads to low productivity, low morale, frustration etc. Any kind of dispute leads to hampering industrial growth. It becomes necessary to resolve industrial disputes as early as possible. Forms of Disputes : Industrial dispute may take any form like strike, lock outs, gherao, bandh etc. It may be violent at times leading to loss of life and property. It disturbs the public life also. There are losses of manhours and production which enterprise has to suffer. The forms of disputes are discussed as below. 1. Strike : Non acceptance of employees' demand lead them to stop the work and proceed on strike. Strike is the last and important weapon with the employee which is used when all hopes of fulfillment of their demand are shattered and there is no way left to them but to resort to strike. Strike is initiated and supported by the employee union. It is stopping of work by the employees or a group of employees undertaken to pressurise the management to accept their demands. It can continue for any number of days. It is a complete cessation of work by the employees. Strikes can be of following types. (a) Economic strike: Economic strike is one which is undertaken by the members of the trade union for fulfillment of their economic demands such as rise in wages, bonus, and other facilities such as health, education, food at confessional rates etc. and other conditions of work.
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(b) General strike : General strike is one which is undertaken by all the employees belonging to all unions and in regions in the entire industry. The employees for fulfillment of common demands resort to general strike. It can be an extension of sympathetic strike. (c) Sympathetic strike : It is the strike undertaken by the members of one union to support the demands of striking employees of the other union. This is undertaken to express sympathy with the striking employees and their demands. If this sympathy strike is extended further it can take the form of general strike. This is also known as token strike. (d) Sit down strike: It is the strike when employees stop working but do not leave the place of work. They sit at the place of work. This form of strike is also known as pen down or tools down strike. They do not interfere in the work but they themselves do not work at all. (e) Go slow strike: The strike where employees do not stop work but do not work with enthusiasm. The speed of their work is very slow which results in low output. They are doing this in an organised way. This puts employers under pressure, which is the object of strike. 2. Gherao: Gherao means to surround. The members of the union surround the Chief executive and do not allow him to leave the place where he is surrounded or gheraoed. Usually this place is his office. They create a human chain around him restricting him to move. Gheraos are very common means of protest. Any group can do this any time if they are dissatisfied. It should take the violent turn. 3. Lock out: Lock out is resorted to by the employers to put pressure on their employees. Lock out is undertaken by the employers to force the employees to resume work on the terms and conditions of employers. Lock out is an extreme step taken by the employers to curb the militant activities of the unions. At times it becomes a trial of strength between the employers and employees. 4. Picketing: Picketing is a method resorted to by the employees to attract attention of common men to the fact that there exists a dispute between the management and employees. Picketing is dissuading the employees from reporting to work by some men at the gate of the place of work. Picketing is legal activity to exhibit protest. It is not violent activity. 5. Boycott: The workers may boycott use of company's product. They may request the general public also to do so. This adversely affects the sale of company's product. To get rid of the ill effects it may think of accepting the demands of the employees. All the forms of disputes strike, bandhs, lock out etc. adversely affect the industrial growth and enterprises have to suffer a lot. Employees and management should settle the disputes amicably without resorting to any of the above forms. As far as possible a care. INDUSTRIAL DISPUTES- CAUSES, CLASSIFICATION According to Industrial Disputes Act, 1947, Section 2(n), Industrial Disputes mean any dispute or difference between employers and employees, or between employers and workman or between workmen and workman, which is connected with the employment or non-employment or terms of employment or with the condition of labour of any person. Some of the principles are laid down by the court to identify one dispute as industrial dispute a) A workman does not draw wages exceeding Rs. 1600 per month.
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b) The dispute must affect a large group of workman who has a community of interest. c) The rights of that workman must be affected as a class. d) The dispute should be invariable taken up by an appreciable number of workman. e) There must be conceited demand by the workers for peerless and the nature of grievance be comes such that individual complaint tern to be a general complaint. f) The parties to the dispute should have direct and substantial interest in the dispute. Causes of Industrial Dispute/conflict A) Industry Related Factors 1) The industry related factors pertaining to employment, wages, house of work, privileges, the rights and obligations of employees and employers, terms and conditions of employment, including matters pertaining to a) Dismissal or non-employment of any person. b) Registered Agreement, settlement or award. 2) High growth of population and types of unemployment after rise to industrial dispute. The types of unemployment include structural, seasonal, frictional and disguised unemployment. 3) High inflation erodes the value of money, continuous inflation decreases the real wages of workers. B) Trade Union related problems -1) The growing inter union rivalry, and multiplicity of Trade Unions have destroyed solidarity of working class. 2) Non-recognition of some trade Unions as bargaining agents of their members creates despair among Trade Union leaders. 3) Continuous increasing compulsory adjudication of disputes has made Trade Unions indifferent to wages and working conditions of industrial employees which is now determine by courts, wage boards and tribunals. C) Management Related Factors 1) Management generally is not willing to talk over any dispute with the employees or their representatives or refer it to arbitration even when Trade Unions want to continue decisions. 2) The managements unwillingness to recognize a Trade Union creates despair. 3) The unfair labour practices by management creates agony. 4) Management shows unwillingness to delegate authority even to officials of recognised Trade Unions.
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5) During negotiations for the settlement of a dispute, the representatives of employers unnecessarily and unjustifiably take the side of the management, tensions are created, which leads to strikes, go slow, etc. D) Government Related Factors 1) Policies of liberalizations and privatizations have causal many strikes due to fear of unemployment. 2) Most of the labour laws have lost their relevance in the context of the changed industrial climate and culture. 3) Governments conciliation machinery many time proves to be irrelevant because a) Both the employees and employers have little faith in it. b) Both has become litigation minded. Classification of Industrial Disputes 1) Interest Disputes - These disputes are also called conflicts of interests or economic disputes or collective labour disputes. In general they relate to the determinations of new terms and conditions of employment for general workers. In most cases, this dispute arises when trade union demands for improvement in wages, fringe benefits, job security or other terms or conditions of employment. 2) Grievance or Rights DisputesThese disputes are also called conflicts of rights or legal disputes or individual disputes. They generally rise from day-to-day working relations and conditions in any undertaking, the grievances arise on such questions as discipline or dismissal, the payment of wages and other fringe benefits, working time, over time, promotion, demotion, job classification, safety and health conditions, the work rule of the collective bargaining. 3) Disputes over unfair labour practices Management practices these unfair labour practices. Examples area) Discrimination against workers on the ground that they are Trade Union member or participate in Trade Union activity or in strikes. b) Interference, restraint or coercion of employees when they exercise their rights to organise, join or assist a Union. c) Establishment and promotion of employer sponsored Unions. d) Refusal to bargain collectively, in good faith with the recognised union. e) Recruiting new employers during a strike which is not an illegal strike. f) Failure to implement an award, settlement or agreement.
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g) Indulging in acts of force or violence. 4) Recognition Disputes This type of dispute arises when the management of an undertaking or employers organigation refuses to recognise registered Trade Union for the purpose of collection bargaining. This is also called Trade Union victimization. Impacts of Industrial Disputes in Organisations 1) Industrial disputes may create several work stoppage while workers engage themselves in strikes, gherao, picketing, go slow. 2) Industrial disputes create huge man-days loss. Loss of man-days means absent from productions in those days. 3) While dispute is created on account of dismissal or discharge of any employee, this may add extra unemployment in the economy. This may increase social cost of retrenchment or separation. 4) If one industrial dispute is created due to inter-Union rivalry, this may destroy solidarity of working class. 5) If one dispute is created, due to unfair labour practices practiced by management, this may erode management ethics and management values. 6) If the nature of one dispute is like that of non-awarding of recognition to any trade union, that union can not take part in collective bargaining. In that case workers cannot represent code of conduct to the management these trade union lose the bargaining power. This is called trade union victimisation. 7) Disputes may be created by the management by offering unnecessary V.R.S. or retrenchment schemes to the redundant workers. This may create misery in the life of workers as they lose their earning capacity. Gradually the standard of living of retrenched workers decline. This is called social cost of reforms. This may arise due to organigatimal restructuring, technology up-gradation and massive separation policies adopted by the management. 2 a) Define Indiscipline / Mis-conduct concept in organigation. What are the causes of misconduct? State different forms of misconduct. What are the remedial measures and procedure of punishment in disciplinary action procedure? Ans:- Discipline is employee self control which prompts him to cooperate willingly with the organizational standards, rules, objectives, etc. Misconduct / Indiscipline is a transgression of some established and definite rules. It is violation of rules. Any breach / violation of these may rules may amount to misconduct. It is an act, which is prejudicial to the interest of the employer or likely to impair the reputation of the employer or create unrest even outside the premises of the establishment and beyond duty hours. Causes of Misconduct 1) Unfair labour practices practiced by employers.
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2) Victimisation on the part of employers, like wage differentials, unreasonable declaration of payment of bonus or non-payment of bonus, wrongful work assignments, defective grievance procedure. 3) Bad working conditions. 4) Poverty, frustration, indebtedness generally overshadow the minds of workers. These create absenteeism, dishonesty, violation of plant rules, gambling, incompetence, willful damage to office property, strikes, go slow, etc, all lead to indiscipline. Forms of MisconductAccording to Bombay High Court (Tiwari vs. Central Railway 1960), the following acts would constituted misconduct1) Theft, Fraud or Dishonesty in connection with employers business. 2) Illegal strikes or inciting others to take part in illegal strikes. 3) Breach of duty, absence without leave. 4) Non-performance of jobs, duties. 5) Breach of discipline. Refusal to accept charge sheet, orders or other communications served in accordance with standing orders. 6) Disrespects to or assaulting superiors, disrupting relations with co-workers, canvassing for union membership of collection of union dues with in the premises of establishment except in accordance with law or with the prior permission of managers. 7) Willful damage to, or loss of, employers goods or property. 8) Taking or giving bribes. 9) Habitual absence without leave for more than ten days. 10) Riotous or violent behaviour during working hours at the establishment. 11) Frequent repetition of any act or omission for which a fine may be imposed to a maximum of 2% wages per month. 12) Habitual negligence. Steps of Disciplinary Action / Steps taken by HR Manager 1) A worker committed misconduct. 2) Preliminary investigation has been held to prove prima facie of the case. 3) Management will issue letter of charge or charge sheet or show-cause letter asking causes why management will not take any disciplinary action against him or her.
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4) If the worker admits the misconduct, management may issue either oral or written warning letter or gives suspension letter. 5) If the worker does not admit the misconduct, management will arrange for one domestic enquiry. Management will appoint one enquiry officer from outside. The enquiry officer must be an independent person who is not a witness or a party to the misconduct. Again the person himself or herself should not have any interest in the outcome of the domestic enquiry. This is called Principle of Natural Justice. 6) At the end of the domestic enquiry the enquiry officer obtains signature of every body present in the enquiry, prepares own report and submits the report to his / her appointing authority. 7) On the basis of that report HR Manager will take the ultimate decision on any of the following disciplinary actions a) Warning Letter b) Letter of suspension c) Letter of discharge / dismissal.
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Unit 9
Industrial Relation Collective Bargaining, Workers Participation and Trade Union. 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. Features Some of the important features of collective bargaining may be listed thus: a. 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. b. Strength: Across the table, both parties bargain from a position of equal. It is industrial democracy at work. c. 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. d. Voluntary: Both workers and management come to the negotiating table voluntary in order to have a meaningful dialogue on various troubling issues. They try to probe each oyhers views thoroughly before arriving at an acceptable solution. The implementation of the agreement reached is also a voluntary process. e. Continuous: Collective bargaining is a continuous process. It does not commence with negotiations and 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. f. 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. g. Power relationship: Workers want to gain the maximum from management, and management wants to extract the maximum from workers by offering as little as possible. To reach a consensus, both have to retreat from such positions and accept less than what is asked for and give more than what is on offer. By doing so management tries to retain its control on workplace matters and unions attempts. To strengthen their hold over workers without any serious dilution of their powers.
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Bargainable Issues Which are the issues that could be bargained across the table ? Practically speaking any issue that has relevance to management and workers becomes the subject matter of bargaining. However, in certain specific cases both management and workers are reluctant to yield ground. Traditionally, management is not willing to negotiate work methods, arguing that it is managements exclusive right to decide how the work is to be done. Likewise unions do not want negotiations on production norms and disciplinary matters, because any agreement in this regard would put limits on their freedom. However over the years, the nature and content of collective bargaining has changed quite dramatically, thanks to the pulls and processors exercised by the bargaining. Traditionally wages and working conditions have been the primary focus areas of collective bargaining. However, in recent times, the process of bargaining has extended. Types Of Bargaining : Four distinct types of bargaining have evolved overtime, namely conjunctive, cooperative, productivity and composite bargaining. These are discussed below. a. Conjunctive/ distributive/bargaining :The parties try to maximise their respective gains. They try to settle economic issue such as wages, benefits, bonus, etc. through a zero sum game (where my gain is your loss and your gain is my loss). Union negotiate for maximum wages. Management wants to yield as little as possible while getting things done through workers. b. Cooperative bargaining : When companies are hit by recession, they cannot offer the kind of wages and benefits demanded by workers. As the same time they cannot survive without the letters support. Both parties realise the importance of surviving in such difficult times and are willing to negotiate the terms of employment in flexible way. c. Productivity bargaining :In this method workers wages and benefits are linked to productivity. A standard productivity index is finalised through negotiations initially. Workers do not have to perform at exceptionally high levels to beat the index. If they are able to exceed the standard productivity norms workers will get substantial benefits. Management gains control over work place relations and is able to tighten the norms still further in future negotiations. d. Composite bargaining: It is alleged by workers that productivity bargaining agreements have increased their workload. Rationailisation, introduction of high technology, tight productivity norms have made the life of a worker somewhat uneasy. All these steps have started hitting the unions and workers below the belt. As an answer to such problems, labor has come in favour of composite bargaining. In this method labor bargains for wages as usual but goes a step further demanding equity in matters relating to work norms, employment levels, manning standards, environmental hazards, sub-contracting clauses, etc. The Process Of Collective Bargaining: The whole process of collective bargaining takes place mainly in two stages: 1. 2. Negotiations and Implementation
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In collective bargaining carrying out negotiation and reaching an agreement constitute only half of the process. The other equally important part is implementation of the contract. However, briefly the following steps are involved in the Collective Bargaining process: a. Identification of the problem: The nature of the problem influences whole process. Whether the problem is very important that is to be discussed immediately or it can be postponed for some other convenient time, whether the problem is a minor one so that it can be solved with the other parties acceptance on its presentation and does not need to involve long process of collective bargaining process, etc. It also influences selection of preventatives, their size, period of negotiations and period of agreement that is reached ultimately. As such it is important for both the parties to be clear about the problem before entering into the negotiations. b. Preparing for negotiations: When it becomes necessary to solve the problem through collective bargaining process, both the parties prepare themselves for negotiations. The preparation starts with selection of representatives. Such representatives should be selected who can carry out negotiation with patience, composure and who can present their views effectively. After selection they should be educated about the complete problem and its pros and cons. Their powers and authority during negotiations also should be clearly spelt out. c. Negotiation of agreement : Usually there will be a chief negotiator who is from the management side. He/she direct and presides the process. The chief negotiator presents the problem, its intensity and nature and the views of both the parties. Then he/ she allows the representatives of both parties to present their views. During negotiations, the representatives should be attentive as to find out what the other party is arguing for. The representatives tend to think about what counter arguments they can present and how to say no effectively, while the other party is presenting its own views. This is a major obstacle in the bargaining process. The representative should be attentive to the other parties problems. d. Implementation of contract : The agreement can be made on a temporary basis. In such cases, before its expiry both parties consult each other and can terminate or renew the agreement depending upon the circumstances. The union may always demand the renewal of such agreements which benefit workers before their expiry. Management on the other hand, may reject this demand taking the financial position of the organization. Into consideration. As a result, this may again lead to negotiations. As such, collective bargaining is not a temporary accommodation, but it is a continuous process. Factors against Successful collective Bargaining Process: Collective bargaining has not made much headway in India when compared to other industrialised nations. The reasons for this sorry state of affairs may be listed thus: a. Employers reluctance: Employers have failed to read the writing on the wall. They do not appreciate the fact that unions have come to stay with almost equal bargaining strength. Such negative attitudes have come in the way of negotiating with unions voluntarily. b. Weak unions: Just about 10 per cent of total workforce in India are unionised, a figure, which is much lower in comparison to, developed countries. The trade union membership rarely includes a majority of workers. c. Inadequate interventions : The regulatory framework covering the industrial relations scene is quite tight, leaving very little room for bargaining to flourish on a voluntary basis. In case there is a war of nerves between management and labor (as is the case with Philips, Bata in West Bengal)
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government steps in to resolve the issue. The legislative means offered through conciliation or adjudication did not help matters either. Conditions Essential For Effective Bargaining: Not all the collective bargaining process are successful and effective. There are certain prerequisite for an effective bargaining process which are as follows: a. Unanimity among workers: Before entering into negotiations, there must be unanimity among workers. At least the representatives of workers should be able to present the opinion or demands of majority of workers or else, the management can take advantage of diverse demands of the workers. b. Strength of both the parties: Both the parties in negotiations should be equal in strength. One party dominating the other is against the whole nature of collective bargaining. It should always be a give and take process and should not be a you give and we take or you bargain and we collect process from either side. Attitudes The attitudes of the parties (involved) should be positive. Both parties should reach the negotiating table with an intention to find better solutions. The parties involved in collective bargaining should be prepared to give away something in order to gain something. As already mentioned both the parties of collective bargaining meet with highly divergent interests. They are at far ends of the rope. As such to reach a middle point, both parties should be prepared to give away something. Both parties to collective bargaining should observe and follow the terms and conditions of previous agreements that are reached. Collective bargaining, being a continuous process, can be effective only with the successful implementation of previous agreements. Any lapse on the part of any party concerned shows its effect on the present process. Representative Authority The representative of both parties should fully understand and be clear about the problems and their implications. They should be given some authority in the process of negotiations like altering minor terms and conditions if necessary. The collective bargaining process cannot be effective if the representatives have to consult back concerned parties often on minor issues. The workers can make effective use of collective bargaining process to achieve participative management and good working conditions. They should not confine collective bargaining to monetary benefits alone. The parties concerned should have mutual trust and confidence and respect for each other and also show willingness to settle matters through negotiations. The process of bargaining should be free from unfair practices and conflict. Each party should respect rights and responsibilities of the other party. Suggestions For Effective Implementation Of Collective Bargaining :
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1.
Unions should be made strong by creating awareness among workers.
2. Interference of political leaders should be avoided. The unions should separate themselves from politics. 3. Government should make efforts for the growth of collective bargaining. Adjudication should be used only as a last resort. Government can make legislation for compulsory collective bargaining before resorting to adjudication. 4. Management should develop a positive attitude towards unions. Much headway has already made in this direction. Presently, managers are mostly aware of the rights of workers. They are also realising how important is cooperation between management and workers for the effective functiting of an organization. As such, they are now encouraging negotiations and amicable solutions. Recommendations Of National Commission On Labour : In 1969, National Commission on Labor made the following recommendations after considering the problem. 1. Government intervention in industrial relations, particularly in the settlement of industrial disputes, should be reduced gradually to the minimum possible extent. Compulsory adjudication of disputes should be used only as a last resort. 2. Trade unions should be strengthened both organizationally and financially by amending the Trade Union Act of 1926 to make registration of unions compulsory, enhance the union membership fee, reduce the presence of outsiders in the union executive and among the office-bearers and increase the minimum number of members in respect of the union applying for registration. 3. Legal provision 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 labor practices. Bargaining in good faith by both employers and unions. Conferring legal validity and legitimacy on collective agreements.
Trade Union Definition of Trade Unions : According to webs, a trade union is a continuous association of wages earners for the purpose of maintaining and improving the conditions of their working lives. 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.
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It is a relatively permanent formation of workers. It is not a temporary or casual combination of workers. It is formed for securing certain economic (like better wages, better working and living conditions), 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. Objectives Of Trade Unions : The failure of an individual workers to seek solutions to problems, while discharging his duties, personal as well as organizational, led them 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 organization. However, the workers interest / welfare is a broad term in which various subjects wages and salaries, working conditions working hours, transfer, promotions, recruitment and classification, training, discipline, leave and holidays, dearness allowance, bonus, incentives, quarters, sanitation, employee relation, facilities to unions, welfare, employee relations and the like are included. Thus a trade union is meant to conduct negotiation on behalf of the individual workers in respect several items. However, trade unions specifically concentrate their attention to achieve the following objectives: a. 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. b. Working conditions :Trade unions with a view to safeguard of workers demands the management to provide all the basic facilities such as, lighting and ventilation sanitation, rest rooms, safety equipments while discharging hazardous duties, drinking, refreshment minimum, working hours, leaves and rest, holidays with pay, job satisfaction, social security benefits and other welfare measures. c. 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 managements unilateral acts and disciplinary policies. This victimisation may take the from of penal transfer, suspension dismissals. etc. In such a situation. The separate worker who is left in a helpless condition may approach the trade union. Ultimately the problem may be brought to the notice of management an individual worker and fight the management for justice, Thus the victimised worker may be protected by the trade union. d. Personnel policies :Trade unions may fight against improper implementation of personnel policies in respect of recruitment, selection, promotion, transfer, training, etc. e. 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 childrens cultural and social problems. f. Employee-employer relation :Harmonious relations between the employee and employer is a sine quo non for industrial peace. A trade union always strives for achieving this objective. However,
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the bureaucratic attitude and unilateral thinking of management may lead to conflicts in the organization 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 promote industrial peace. g. 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 interest of workers through collective bargaining. Thus, the trade union works as the negotiating machinery. h. Safeguarding organizational health and the interest of the industry: Organizational health can be diagnosed by methods evolved for grievance redressal and techniques adopted to reduce the trade of absenteeism and labor 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, labor turnover and developing systematic grievance settlement procedures leading to harmonious industrial relation. Trade unions can thus contribute to the improvements in level of production and productivity, discipline and improve quality of work life. Functions of Trade Unions The functions of trade unions can be divided into the following categories, viz. : a. Militant or protective or intra-mutual functions :These functions include protecting the workers interests i.e., hike in wages, providing more benefits, job security, etc., through collective bargaining and direct action such as strikes, gheraos, etc. b. Fraternal or extra-mural functions :These functions include providing financial and nonfinancial assistance to workers during the periods of strikes and lock outs, extension of medical facilities during slackness and causalities, provision of educational and housing facilities, provision of social and religious benefits, etc. c. Political functions :These functions include affiliating the union a political party, helping the political party in enrolling members, collecting donation, seeking the help of political parties during the periods of strikes and lockouts. d. Social functions :These function include carrying out social service activities, discharging social responsibilities through various sections of the society like educating the customers. Growth of Trade Union Movement and Membership : The unions in India, as in most other countries, have been the natural outcome of the modern factory system. The development of trade unionism in India has a chequered history and a stormy career. Early Period : Efforts towards organising the workers for their welfare were made, during the early period of industrial development by social workers, philanthropists and other religious leaders mostly on humanitarian grounds. The first Factories Act, 1881, was passed on the basis of the recommendations of the Bombay Factory Commission, 1875. Due to the limitations of the Act, the workers in Bombay Textile Industry under the leadership of N M Lokhande demanded reduced of hours of work, weekly rest days, mid-day recess and compensation for injuries. Bombay Mill owners Association conceded
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the demand for weekly holiday. Consequently, Lokhande established the first workers Union in India in 1890 in the name of Bombay Mill hands Association. A labor journal called Dinabandu was also published. Some of the important unions established during the period are : Amalgamated society of Railway servants of India and Burma (1897), the printers Union, Calcutta (1905) and the Bombay Postal Union (1907), the kamgar Hitavardhak Sabha (1910) and the social service League (1910). But these union were treated as ad hoc bodies and could not serve the purpose of trade unions. A Modest Beginning : The beginning of the Labor movement in the modern sense started after the outbreak of world war I in the country. Economic, political and social conditions of the day influenced the growth of trade union movement in India. Establishment of International Labor Organisation in 1919 helped the formation of trade unions in the country. Madras Labor Union was formed on systematic lines in 1919. A number of trade unions were established between 1919 and 1923. Category wise unions like spinners Union came into existence in Ahmedabad under the inspiration of Mahatma Gandhi. These unions were later federated into an industrial union known as Ahmedabad Textile Labor Association. This union has been formed on systematic lines and has been functioning on sound lines based on the Gandhian Philosophy of mutual trust, collaboration and non-violence. All India Trade Union Congress : The most important year in the history of India Trade Union movement is 1920 when the All India Trade Union Congress (AITUC) was formed consequent upon the necessity of electing delegates for the International Labor Organization (ILO). This is the first All India trade union in the country. The first meeting of the AITUC was held in October, 1920 at Bombay (now Mumbai) under the presidenship of Lala Lajpat Rai.The formation of AITUC led to the establishment of All India Railwaymens Federation (AIRF) in 1922. Many company Railway Unions were affiliated to it. Signs of militant tendency and revolutionary ideas were apparent during this period. a. Period of splits and mergers :The splinter group of AITUC formed All India Trade Union Federation (AITUC) in 1929. Another split by the communists in 1931 led to the formation of All India Red Trade Union Congress. Thus, splits were more common during the period. However, efforts were made by the Railway Federation to bring unity with in the AITUC. These efforts did bear fruit and All India Red Trade Union Congress was dissolved. Added to this, All India Trade Union Federation also merged with AITUC. The unified AITUC convention was held in 1940 in Nagpur. But the unity did not last long. The world war II brought splits in the AITUC. There were two groups in the AITUC, one supporting the war while the other opposing it. The supporting group established its own central organisation called the Indian Federation of Labor. A further split took place in 1947, when the top leaders of the Indian National Congress formed another central organization. b. Indian National Trade Union Congress :The efforts of Indian National Congress resulted in the establishment of Indian National Trade Union Congress (INTUC) by bringing the split in the AITUC started gaining membership right from the beginning. c. Other Central Unions :Socialist separated from AITUC had formed Hind Mazdoor Sabha (HMS) in 1948. The Indian Federation of Labor merged with the HMS. Radicals formed another union under the name of United Trade Union Congress in 1949. Thus, the trade union movement in the country was split into four distinct central unions during the short span of 1946 to 1949.
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d. Some other central unions were also formed. They were Bharatiya Mazdoor Sangh (BMS) in 1955, the Hind Mazdoor Panchayat (HMP) in 1965n and centre of India Trade Unions (CITU) in 1970. Thus splinter group of INTUC formed Union Trade Union Congress the split in the Congress Party in 1969 resulted in the split in INTUC and led to the formation of National Labor Organization (NLO). e. Present Position :
There are over 9,000 trade unions in the country, including unregistered unions and more than 70 federation and confederations registered under the Trade Unions Act, 1926. The degree of unionism is fairly high in organised industrial sector. It is negligible in the agriculture and unorganized sector. Though the number of unions has greatly increased in the last four decades, the union membership per union has not kept pace. The National Commission on labor has stated that only 131 unions had a membership of over 5,000. More than 70% of the unions had a membership of below 500. Over the years the average membership figures per union have fallen steadily from about 1387 in 1943 to 632 in 1992-93 (Pocket Book of Labor Statistics 1997). Unions with a membership of over 2000 constitute roughly 4 per cent of the total unions in the country. There is high degree of unionization (Varying from 30% to over 70%) in coal, cotton, textiles, iron and steel, railways, cement, banking, insurance, ports and docks and tobacco sector. White collar unions have also increased significantly covering officers, senior executives, managers, civil servants, self employed professions like doctors, lawyers, traders, etc., for safeguarding their interests. There are as many as 11 central trade union organisation in the country (as against one or two in UK, Japan, USA). The membership figures of each such union, naturally are not very impressive AITUC had 9.24 lakh, INTUC has 27.06 lakh., HMS had 14.77 lakh and UTUC 8.3 lakh (Lenin group), and CITU had 17.98 lakh members in 1995. The membership figures have not changed significantly over the years. Just about 10% of the total workforce in India is unionised. The last membership survey was carried out in 1989, the results came in 1992 suggesting the supremacy of BMS as the union having maximum union members in the country about 31 lakh. A lot of benefits in the form of representation in various government committees, PSU boards, wage negotiation committees would be available to the BMS as a result of this survey. In the 1980 survey INTUC emerged as the topper among the national trade unions in the country. The survey results of 1989 had been leaked to the press in 1992, but not officially endorsed by the government till recently. What about the figures of members claimed by INTUC and others after 1989 survey ? A meeting held on 2.10.1994 did not resolve the conflicting claims of RSS affiliated BMS and Congress supported INTUC and the stalemate continues! The Trade Unions Act, 1926 And Legal Framework Registration : The Trade Unions Act, 1926, legalises the formation of trade unions by allowing employees the right to form and organise unions. It permits any 7 persons to form their union and get it registered under the Act. They must agree to abide by the provisions of the Act relating to registration and submit a copy of the rules of the trade union in their application to the Register of trade Unions. If the union has been in existence for more than one year the application must be accompanied by a statement of assets and liabilities of the union. The application must contain (a) the names, occupation and address of the numbers (b) name of the union, its head office (c) details about office bearers. After verifying the particulars, the Register will issue a certificate of registration in the prescribed form. Status of a Registered Union :
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A trade union enjoys the following advantages after registration : It becomes a body corporate It gets a common seal It can buy and hold movable and immovable property It can enter into contracts with others It can sue and be sued in its name.
Cancellation of Registration : The Registrar of Unions can cancel the registration of a union on the following grounds : On the application by the union When the application was obtained by fraud or mistake Where the union has ceased to exist When it has willfully and after notice from the Registrar contravened any provision of the Act or allowed any rule to continue in force which is inconsistent with any provisions of the Act. Where the union has rescinded any rule providing for any matter, provision for which is required by Section 6 Where the primary objects of the union are no longer in agreement with the statutory objects.
Obligations : Under the act it is obligatory for the union to: Allow anyone above the age of 15 years to be a member of the union, Collect membership fees not less than 25 paise per month and per member. Specify that 50% of office bearers must be from the persons actually employed, Maintain membership register, get the books of account audited and make them available to members. State the procedure for change of its name, its merger with other unions and its dissolution. Spend uniform funds for the purposes specified in the Act.
Rights : Claim immunity from civil and criminal prosecution for bonafide trade union activities.
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Create a political fund. Spend general funds on salaries of staff and meet certain other expenses as stated in the Act. If a union formed by giving wrong information or registration is obtained through fraudulent means, the Registrar of Trade Unions can cancel such registration by giving 2 months notice stating reasons.
Union Recognition : One of the long pending problems of Indian Industrial Relation System is to evolve a satisfactory and acceptable means to settle the problem of recognising a bargaining agent from out of rival unions. Collective bargaining cannot exist and function with out recognising the bargaining agent. Since there is no law for compulsory recognition of trade unions it is left to the choice of the employees. In view of the union rivalry and multiple unions the employer finds it is difficult to recognise a union in the context of political affiliation. The employer may recognise those unions with the highest number of members. But more than one union may claim the highest number of membership in view of dual and multiple membership. Efforts have been made to bring about legislative measure for compulsory recognition of unions immediately after the Independence. In fact some of the State acts provide for the registration of union as representative unions subject to full fill man of certain conditions. These acts includes Bombay Industrial Relation Act,1946 The Madhyapradesh Industrial Relations Act,1946 and The industrial dispute (Rajasthan Amendment) Act, 1958. The Bombay Industrial Relation Act, 1946n classified the registered union as : 1. Representative union having a membership of not less then 25% of the total employees as members in an industry. 2. 3. Qualified union having at least 5% of membership in an industry, and Primary union having a membership of at lest 15% of employees in an undertaking.
The rights of a Representative union under the Act are. a. b. c. d. First preferences to appear or act in any proceedings under the Act as the representative, Right to submit a dispute for arbitration. To make a special application to the Labor Court to hold an inquiry and Office bearers of the union cannot be dismissed or discharged.
The need for suitable provision for recognation was streets by the second Five-year plan. The National Commission on Labor examined all the aspects of trade union recognation : i. It would be desirable to make recognition compulsory under a central law in all undertakings employing 100 or more or where the capital invested is above a stipulated size., ii. A trade union seeking recognition as a bargaining agent from an individual employer should have a membership of at lest 30% of workers in the establishment.
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iii. The minimum membership should be at least 25% if recognition is sought for in an industry in a local area, and. iv. The minority unions should be allowed only the right to represent cases of dismissal and discharge of their members before the Labor Court. Union Problems : Over the years, trade union in India have been taken for a ride by outside, political leaders. In the process, the interests of workers and their aspiration have been totally neglected. The trade Unions Act, 1926, did not clearly specify the procedure for recognising a representative union. As a result multiple unions have cropped up, often with blessing from management. The union financias have not been very sound from the bargaining. The average membership figures for each union remain poor and have not improved. The force of libaralisation unleashed in early 90s has strengthened the hands of employers of closing down unviable units. The new corporate mantras productivity performance efficiency, survival of the fittest have virtually pushed them to the wall-where their very survival looks uncertain. Lets recount the factor responsible for their even-increasing worse and deprecated status thus : a. Trade Union leadership : The nature of leadership significantly influences the union management relation as the leadership is the lynch-pin of the management of trade unions. The leadership of the trade unions in India has been outside leadership mainly drawn from political parties. As the labour movement in India is deeply involved in the politics and politics and politicians, most of the politicians have also come from trade union. For example, Lokmaya Jayaprakash Narain, former President of India V. V. Giri, George Fermandes, all worked as trade union leaders; In fact political parties invented Trade Unions in India. Reasons for emergence of outside leadership: Outside leadership has been playing a pivotal role in India Trade Union Movement due to the inability of insiders to lead their movement. In view of low education standards and poor command over English language which is still the principal language of labour legislation and negotiations, low level of knowledge about labour legislation, unsound financial position, fear of victimisation by the employer and lack of leadership qualities - outside leaders have come to stay. The main reason for this trend is that the Trade Unions Act, 1926, itself provided the scope the scope for outside leadership Section 22 of the Act requires that ordinarily not less than half of the offices of the registered union shall be actively engaged or employed in an industry to which the union relates. Thus, this provision provides the scope for outsiders to the tune of 50% of the office bearers. The Royal Commission on Labour (RCL), 1931, recommended for the reduction of the statutory limit of outsiders from 1/2 to 1/3 but no efforts were taken in this direction. The evil effects of outside leadership: The evil effects of outside leadership analysed by National Commission on Labour are as follows: 1. Outside leadership undermined the purposes of Trade Unions and weakened their authority. Personal benefits and prejudices sometimes weighed more than unions. 2. Outside leadership has been responsible for the slow growth of Trade Unions. 3. Internal leadership has not been developed fully. 4. Most of the leaders cannot understand the workers problems, as they do not live the life of a worker.
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Even though outside leadership is permissible in the initial stages it is undesirable in the long run because of many evils associated with it. Political differences of leaders have been inhibiting the formatting the formation of one union in one industry. Most of the Trade Union leaders fulfill their personal aspirations with their knowledge and experience gained in the Trade Unions. Measures to minimise to minimise the evil effects of outside leadership: In view of the limitations of outside leadership, it is desirable to replace the outside leaders progressively by the internal leaders. The National Commission on Labour, 1969, also stated that outsiders in the Trade Unions should be made redundant by forces from within rather than by legal means. Both the management and trade unions should take steps in this direction. These steps may be: Management should assure that the victimisation will be at zero level, even if the trade unions are led by insiders; Extensive training facilities in the areas of leadership skills, management techniques and programmes should be provided to the workers: Special leave should be sanctioned to the office bearers.
Union rivalry has been the result of the following factors: 1. The desire of political parties to have their basis among the industrial workers; 2. Personal-cum-factional politics of the local union leaders; 3. Domination of unions by outside leaders; 4. Attitude and policies of the management, i.e., divide and rule policy; and 5. The weak legal framework of trade union. Measures to minimise union rivalry: In view of the evil effects of inter-union rivalry and the problem of formation of one union in one industry, it may be necessary to consider the recommendations of Nation Commission on Labour, 1969. The recommendations of NCL to minimise union rivalry are: Elimination of party politics and outsiders though building up of internal leaders Promotion of collective bargaining through recognition of sole bargaining agents Improving the system of union recognition Encouraging union security Empowering labour courts to settle inter-union disputes if they are not settled within the organisation.
b. Multiple unions: Multiple unionism both at the plant and industry levels pose a serious threat to industrial peace and harmony in India. The situation of multiple unions is said to prevail when two or more unions in the same plant or industry try to assert rival claims over each other and function with
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overlapping jurisdiction. The multiple unions exist due to the existence of craft union, formations of two or more unions in the industry. c. Union rivalry: The formal basis for Trade Union Organisation is provided by the Indian Trade Union Act, 1926. The relevant article reads as follows: Any seven or more members of a trade union may be subscribing their names to the roles of the trade union and by otherwise complying with provisions of this act with respect to the registration, apply for registration of the trade union under this Act. This provision has led to the formation of multiple unions and resulted in inter- union rivalry in different industries, but the inter-union rivalry breaks the very purpose of the trade unions by weakening the strength of collective bargaining. On the other hand, the existence of a single, strong union not only protects the employee interests more effectively but also halts the various unproductive activities of the unions and forces the leaders to concentrate on the strategic issues. Further, it helps to bring about congenial industrial relations by bringing about a system of orderliness in dealing with the employees and by facilitating expeditious settlement of disputes. The state of rivalry between two groups of the same union is said to be inter union rivalry. Inter-union rivalries have been a potent cause of industrial disputes in the country. They are responsible for weak bargaining power of trade unions in collective bargaining. These rivalries are responsible for slow growth of trade union movement in the country. d. Finance: Sound financial position is an essential ingredient for the effective functioning of trade unions, because in the process of rendering services or fulfilling their goals, trade unions to perform a variety of functions and organise programmes which require enormous financial commitments. Hence, it is imperative on the part of a trade union to strengthen its financial position. But it is felt that the income and expenditure of trade unions in India over the years is such, with few exceptions, that the financial position of the union is generally weak, affecting their functioning. It is opinioned that the trade unions could be more effective, if they paid more attention to straining their organisations and achieving higher attention of financial solvency. The primary source of income to the unions is membership subscription. The other sources of union finances are donations are donations, sale of periodicals, etc. The items of expenditure include: allowances to office bearers to office staff, annual convention / meeting expenses, rents stationery printing, printing, postage telegrams, etc. Most of the trade unions in India suffer from inadequate funds. This unsound fee, Trade Union Act, 1926, prescribed the membership fee at 25 paise per member per month. But the National Commission on Labour recommended the increase of rate of membership subscription from 25 paise to Re 1 in the year 1990. But the Government did not accept this recommendation. e. Other problems: The other factors responsible for the unsound functioning of trade unions in India are: i) Illiteracy : Workers in India usually fail to understand the implications of modern trade unionism. Their illiteracy coupled with ignorance and indifference account for the predominance of outside leadership. ii) Uneven growth : Trade unionism activities are, more or less confined to major metros in India and traceable only on large scale units (especially cotton textile industry) The degree of unionism also
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varies from industry to industry, varying between to 30-70 per cent in coal cotton textiles iron and steel tobacco railways, cement, banking. Insurance, ports and docks etc. There degree of unnionism is quite negotiable in the agriculture and unorganised sector. iii) Low membership : The average membership figure of each union are quite depressing. In 1992-93 the average membership figure was 632, a steady fall from 3,594 per union form 1927-Because of their size, unions suffer from lack of adequate funds and find in difficult to engage the service of experts to aid and advise members in times of need. They cant bargaining with the employers effectively on their own. iv) Heterogeneous nature of labour : Since workers come to the factory with varying backgrounds it is difficult for them to put a joint front in case of trouble. Employers exploit the situation, under the circumstances, by dividing workers on the basis of race, religion, language, caste, etc. v) Lack of Interest : For a large majority of workers, unionism even today remains a foreign issue. In fact workers avoid union activities out of sheer disinterestedness. Those who become part of the union, do not also participate in the union work enthusithically In such a scenario, it is not surprising to find out side political le4aders exploiting the situation to serve their own personal agenda. Measures to Strengthen Trade Union Movement in India : The trade union movement in India has been facing several problems as discussed earlier. Moreover, the problems of trade unions are like a vicious circle. It is not possible to put an end to all their problems, or mitigate them to a reasonable level. Hence, management trade unions, political parties should take steps to reduce the effects of these problems. The following are some of the measures to minimise trade union problems and to strength and to strength the Trade Union Movement in India. United Labour Front : Unions must put a joint front. Splinter groups, multiple unions dissipate their energies, dilute their power and reduce their effectiveness. Efficient Leadership : Outside political leadership has developed due to the absence internal leadership. Outside leadership is the main cause for the multiple problems of the trade unions. These problems can be eradicated through the development of leadership. Talents from within Management should encourage internal workers to lead their own movement Management and Trade union shall provide educational and training facilities for the development of internal leadership. Membership Fees : The membership fees should be raised as the amount of wages the workers increased significantly compared to the situation in 1926 when Trade Union Act provided for the collection of 25 paise per month per member as subscription fee. Other Measures : Trade unions should extend welfare measures to the members and activity purpose social responsibilities. The Trade Union Act, 1956, should be amended and the number of members required to form a trade union should be increased from 7 to 50% of the employees of an organizatuoin Similar the scope for the outside leadership should be reduced from 50% to about 10% The membership subscription should be enhanced from 25 paise to 1% of the monthly wage of the worker. The Trade Union Act should be amended in order to avoid dual membership. There should be legal provision for the recognition of the representative union.
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Unions should not in day to day matters. They must focus on important issues affecting workers. Trade Union should form a labour party and all the trade unions in the country should be affiliated to it. It gives adequate strength to the trade union both in industry and Parliament.

Human Resource Management (CP-204)

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Human Resource Management (CP 204)