MBA SEMESTER 3 MU 00 12 Employee Relations Management Assignment Set 1

Q1. Explain the meaning and importance of employee relations management. Ans. Employee Relations Management (ERM) is a vital business process that manages employer-employee and employee-employee relations. It goes by the maxim that a satisfied employee is a productive employee. Organisations following good employee relations realise that employees are important stakeholders in the organisation. Employees who are content with their employers contribute more effectively towards the goals of the organisation. Importance of Employee Relations Management : (1)It improves overall productivity by improving employee morale, productivity, adaptability and communication. (2) It improves job satisfaction and helps in retaining employees. Retaining existing employees is an easier and more cost-effective task when compared to recruiting new employees and training them. (3) It improves the communication system within the organisation. (4) It enhances employee involvement and commitment, which are very important to the success of an organisation. Team working and change management can maintain motivation and commitment. (5) It assures customer satisfaction.

(6) It increases the synergy between the culture of the organisation and the expectations of the employees. (7) It positions the company as an employer of choice and thus attracts new employees. (8) It increases employee loyalty. Confidential information can be kept secure.

Q2. Describe the different levels of strategy in an organization. Ans. Different Strategy Levels in an Organisation Organisations have different levels of strategic decision making. Although these levels are inter-related, each one of them has its own scope and reach. The different levels of strategy in an organisation are at the corporate level, business-unit level, functional level and people level. Let us now examine each level of strategy that exists in an organisation in detail. (A) Corporate level strategy

Corporate level strategy is usually devised at the board level. It defines the following for an organisation: (1) The overall mission (2) The game plan (3) The management of the business portfolio (4) The priorities of each business unit regarding resource allocation (5) The structuring of the business (6) The methods of financing the business (7) The alliances to be made (8) The acquisitions/mergers to be performed.

(B) Business-unit level strategy Business-unit level strategy is mainly concerned with how the organisation gains advantage over its competitors. It deals with the following: (1) The methods the organisation uses to compete in particular markets (2) The new opportunities that the organisation identifies or creates (3) The products or services to develop (4) The customers that the organisation targets.

(C) Functional level strategy Functional level strategy is concerned with how different units of the business (marketing, finance, manufacturing, personnel) transform corporate and business level strategies into operational goals.

(D) People strategy People strategy aims to match the activities of an organisation with its human resources. An effective strategy for people management is vital to the success of an organisation.

Q3. (a) What are the types of conflicts? (b) What methods are used to resolve conflicts in organizations? Ans.(3.a) (A) Man against man "Man against man" conflict involves stories where characters are against each other. This is an external conflict. The conflict may be direct opposition, as in a gunfight or a robbery, or it may be a more subtle conflict between the desires of two or more characters, as in a romance or a family epic. This type of conflict is very common in traditional literature, fairy tales and myths. (B) Man against society

Where man stands against a man-made institution (such as slavery or bullying), "man against man" conflict may shade into "man against society". In such stories,

characters are forced to make moral choices or frustrated by social rules in meeting their own goals (C) Man against nature

"Man against nature" conflict is an external struggle positioning the hero against an animal or a force of nature, such as a storm. The "man against nature" conflict is central to Ernest Hemingway's The Old Man and the Sea, where the protagonist contends against a marlin. (D) Man against self

With "man against self" conflict, the struggle is internal. A character must overcome his own nature or make a choice between two or more paths - good and evil; logic and emotion.

Ans.(3.b) Methods of conflict resolution : There are several methods of conflict resolution. Some result in win-lose solutions, while others result in a win-win for the two parties involved. The three methods commonly adopted are discussed in the next section. (A) Mediation In this method, a mediator, who is a third party, facilitates the resolution process. The mediator may suggest a resolution, typically called the mediators proposal. The mediator cannot impose a resolution on the conflicting parties. (B) Arbitration In this method, a third party called the arbitrator is involved and is typically a private judge. The conflicting parties agree in advance the choice of arbitrator and certify that they will abide by the arbitrator's decision. (C) Compromise It is a method in which conflicting parties voluntarily engage in basic

negotiation. Both parties give up something that they want in order to resolve the conflict. Compromises usually occur in win-lose situations, that is, in such situations, neither side gets everything they want.

Q4. Explain the importance of Human Resource Information Systems. Ans. Importance of Human Resource Information Systems : (A) Payroll : HRIS automates the entire payroll process by collecting and maintaining payroll data. It collects information such as employee attendance, computes the deductions and taxes and generates paycheques automatically and periodically. (B) Time and labour management : HR personnel can collect and assess employee time and work information. HRIS helps in analyses of employee performance. It helps employees to perform better through efficient career planning. (C) Employee benefits : Employee benefits are very important because they help in motivating employees. Employees log in to the system and find the benefits they can avail. Organisations use HRIS to keep track of the benefits employees avail and inform employees of the advantages of various benefit programmes. The HR personnel use relevant data and statistics to compute benefits and compensations of the employees or their dependants. (D) HR management : HRIS reduces the manual and paper work of the HR personnel in performing their routine tasks. The HR personnel can thus focus on more important duties. HRIS provides data support to HR decisions. HRIS helps in succession planning. It helps to integrate employee performance, development and payroll modules and thus retain key employees who can ensure organisational success. HRIS

helps in career management and talent management by identifying the skills of the employees.

Q5. (a) What is meant by grievance? (b) Explain the steps in grievance redressal system. Ans.(5.a) Grievance may be defined as a complaint or resentment against any unjust or unfair act. Grievance is any issue associated with an organisation or its management such as employee discrimination or harassment by managers. It may also be any alleged violation of employee contracts or settlements or violation of any laws, or discrimination on the basis of race, age or sex. The International Labour Organisation (ILO)2 defines a grievance as a complaint of one or more workers with respect to wages and allowances, conditions of work and interpretation of service, condition covering such areas as overtime, leave, transfer, promotion, seniority, job assignment and termination of service. Our society has police stations, panchayats and NGOs that handle grievances of the public. In the same way, organisations have grievance redressal committees where aggrieved employees present their unresolved issues.

Ans. (5.b) Steps in Grievance Redressal Procedure : (A) Formal Grievance Redressal There are three formal stages to redress any grievance. Each stage has a form which is numbered according to the stage it belongs. First, it has to be noted that the grievances have to fall under one of the following categories to be considered as one : (1) Amenities

(2) Compensation (3) Conditions of work (4) Continuity of service (5) Disciplinary action (B) Informal Grievance Redressal In the informal method, the aggrieved employee directly approaches the shift-in-charge or section head (in case of a major grievance). They engage in a direct consultation and resolve the grievance amicably in stage I itself. (C) Collective bargaining It is important to differentiate individual grievances from group grievances. If the issue involves one or a few individual employees, it is handled through a grievance procedure. (D) Types of grievance policy Grievance procedure is a communication between an employee and the management intended to resolve a grievance. Grievance procedures are different in different organisations. (E) Grievance redressal policy in Indian industry Let us look at the grievance policy as adopted by Indian industry. The Indian Labour Conference has adopted a model grievance redressal procedure.

Q6. Explain the meaning and objectives of trade union. Ans. Trade Unions A trade union or labour union is an administration of workforce grouped together to attain common goals such as enhanced operational circumstances. The Trade Union Act of India 1926 defines a trade union as an organisation, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and

workmen, or between employers and employers, or for imposing restrictive condition on the conduct of any trade or business, and includes any federation of two or more trade unions..

Objectives of Trade Unions : The primary objective of any trade union is to protect and promote the interest of its members. Trade unions are permanent workforce bodies within an organisation so that workers have constant access to their representative. Unions achieve their objectives through collective action and group effort. The objectives of trade unions are the following: (a) To improve the economic conditions of employees by securing better wages for them. (b) To provide better working environment for the employees. (c) To secure employee bonuses from the profit of the organisation. (d) To resist schemes of the management which reduce employment, such as rationalisation and automation. (e) To secure social welfare of employees through group schemes which benefit every employee. (f) To protect the interests of employees by actively participating in the organisational management. (g) To provide organisational stability, growth, and leadership.