Compensation

Time Wage System

Eg: Rate is Rs 75 per day fixed Worker A worked for 29 days 29X 75 = 2175 Worker B worked for 25 days 25X 75=1875

Piece Wage System

Output x piece rate Eg 70 pieces x 10 per piece =RS 700

Balance or Debt Method :

Combination of time and Piece (if time wage exceeds piece wage the worker is paid extra or deficit is credited ) Piece wage time cr dr balance 150 X 4=600 500 100 -100 100x4=400 500 -100 nil 125x4=500 500 --- --- nil

Methods of Incentive plan

Halsey Plan
A standard time is fixed for completing a work in advance Time allowed for a task 20 hrs Actual time taken 15 hours Hourly rate of pay rs 1.50

Solution: TxR +(S-T) X R 2 S =STANDARD TIME T =TIME TAKEN R=HOURLY RATE

Rowan plan

A worker is guaranteed minimum wage for time spent on the job . He gets bonus for completing the job in less than the standard time. TxR +(S-T) X T X R 2

EMERSON PLAN
1000 units are standard to get 100% above 1000 units 800 units gets 80% wages 110 units gets standard +10% extra

Taylors differential piece rate system

A standard output of 100 units is fixed in 8 hrs A rate of 0.25 p if output is more than 100 and 20 p if output is less than 100

Group Incentive plan

Priestmans plan
Standard =1,00,000 units a year Actual is 1,20,000 then 20% increase in wages

Scalon plan
1:1 1 % participating bonus for every 1% increase in productivity

Co-Partnership
Shares of company are offered at reduced rates

Profit sharing

PROMOTIONS AND TRANSFERS

According to Pigor and Myres Promotion is the advancement of an employee to a better job better in terms of greater responsibilities , more prestige or status , greater skill and especially , increased reate of pay or salary.

Purpose of promotion Utilizing the skills and knowledge of the employee at a appropriate level 2. To develop competitive spirit and zeal in the employees to acquire skills and knowledge required to take higher level job To develop internal sources of talent To build loyalty among employess and boost their morale

Principles of Promotion:
The promotion policy should be in writing Policy should lay down what percentage of higher positions will be filled up by promotions Job analysis The supervisor or immediate boss should recommend the position A vacancy or would be vacancy should be notified to employees in advance Promotion should not be forced on reluctant employees.

Bases of promotion
Seniority as basis of promotion Merit as basis of promotion Seniority cum merit basis

DEMOTIONS
According to Dale Yoder Demotion is a shift to a position in which responsibilities are decrease . Promotion is , in a sense , an increase in rank and demotion is decrease in rank. Causes of demotion: Inadequecy on the part of employees in terms of job performance , attitude and capabilities. Employee is unable to meet the job standards Demotion may result from organization staff reductions. Demotion may be used as disciplinary tool.

TRANSFER
According to Dale yoder A transfer involves the shifting of an employee from one job to another without special reference to changing responsibilities or compensation . Transfer may involve promotion , demotion or no change in status and responsibilities

Purpose of transfer To meet organizational requirements To meet employees request To ensure better utilization of the employees To provide relief to employee To reduce conflicts and incompabilities To penalize the employees To maintain atenure system T accommodate family related issues.

Types of transfers
On the basis of purpose Production transfer Replacement transfers Remedial transfers Precautionary transfers

On the basis of unit

On the basis of unit Sectional transfers Departmental transfers Inter-plant transfers

Separations
Resignation Dismissal or Discharge Death Suspension Retrenchment Layoff

Working environment and Quality of working Life

Quality of Work Life

A multi-faceted concept It means having a work-environment where an employees activities become more important by implementing procedures or policies that make the work less routine and more rewarding for the employee There exists a relationship between Q.W.L and productivity

Quality of Work Life

The people involved get a sense of satisfaction in their work. Work then becomes not a burden but a means by which the abilities of a person can find expression Mass-production technology has made workers job monotonous and it is of little meaning to him Results of low Q.W.L are absenteeism, low performance, poor morale and occasional sabotage. Ultimately it is the organization that suffers.

Meaning and definition of Q.W.L

Q.W.L is any conscious effort for improving working conditions, work content, and its safety, security, wages and benefits, etc. Q.W.L can be said to be all the original inputs which aim at improving the employees satisfaction and enhancing organizational effectiveness Q.W.L is a concern not only to improve life at work, but also life outside work It is nothing but having a work environment where an employees activities become more important. This means implementing procedures or policies that make the work less routine and more rewarding for the employee. These procedures or policies include autonomy, recognition, belongingness, development and external rewards

Quality of Work Life

Simply speaking, through Q.W.L the people involved get a sense of satisfaction in their work. Work then becomes not a burden but a means by which the abilities of a person can find expression Q.W.L is just humanizing the work Q.W.L = The sum total of physical (working conditions), psychological and economic factors which affect the job.

Objectives of Q.W.L
To improve the standard of living of the employees To increase the productivity To create a positive attitude in the minds of the employees To increase the effectiveness of the organization (Profitability, goal accomplishment etc.)

Factors affecting Quality of Work Life

Some people consider Q.W.L as the existence of a certain set of original conditions and practices. They agree that high Q.W.L exists when Democratic management practices are prevalent in the organization When employees jobs are enriching They are treated with dignity and safe working conditions are present Others equate Q.W.L with the impact of working conditions on the employee's well-being

Companies practicing Quality of Work Life

General Motors Ford Motors with UAW XEROX IBM BHEL, Hardwar TISCO .

Techniques for Improving QWL

Flexible work schedules Job Redesign Opportunity for development Employees participation in management Job security Equitable Justice

Fatigue
Fatigue is defined as a state of being tired . It can be caused by long hours of work , long hours of physical or mental activity, inadequate rest ,excessive stress and combination of these factors.

Symptoms of Fatigue
Chronic tiredness or sleepiness Headache Irritability Slow reflexes and responses Short term memory problem Hallucinations.

Factors to manage fatigue

Roster Design Shift Rotation Breaks

Monotony
Monotony means dislike of work mainly due to repetition of work. Monotony is not an element of job but it is a relationship of job and mind at a particular time . Causes of Monotony Repetition of work Excessive tiredness Absent mindedness and no concentration

Effects of Monotony
Speed and efficiency are adversely affected . Morale is down Inferiority complex Affects the quality and quantity of work Sometimes leads to industrial strike.

Measures to remove Monotony

Change of work Assigned jobs of varied nature. Encourage team spirit of team Shortening of working hours

Difference between Fatigue and monotony

Industrial and Physical Safety

Industrial Accidents
Meaning of Accident : According to factories act 1948 an occurrence in an industrial establishment causing bodily injury to a person which makes him infit to resume his duties in the next 48 hours According to Hennrich Accident is an unplanned and uncontrolled event in which the action of an object , substance , person or radiation results in personal injury or the probability thereof. Causes Of Accidents: Unsafe conditions Defective Equipments Hazardous arrangement or procedures in and around machine or equipments. Insufficient lighting Inhalation of impure air Young and untrained workers Addition to alcholism Stressed employees Causes of accident proneness

Employee Safety
Safety committee Appraisal of employees attitude towards safety programmes Safety engineering Safety education and training

Accident Prevention Programme

Proper safety measures Proper Selection Safety conscious Enforcement of discipline Incentives Proper maintenance of machines and equipment

Employee Morale
According to Flippo, As a mental condition or attitude of individuals and groups which determines their willingness to co-operate. Good morale is evidenced by employee enthusiasm , voluntary confirmation with regulations and orders and a willingness to cooperate with others in the accomplishment of an organisation s objectives. Poor morale is is evidenced by a feeling of discouragement and dislike of the job, company and associates. Morale is a feeling related to espirit de corps , enthusiasm, Zeal

Factors affecting Morale

The Organisation The nature of work The level of satisfaction The level of supervision Workers reward system Employees age The employees education level Off the job activities of the employee

Factors Improving Morale

Two way communication Proper Incentive system Human relation approach Welfare Schemes Participation in Management Improve workers training Job Enrichment

GRIEVANCES
According to Dale s Beach , Grievance is any dissatisfaction or feeling of injustice in connection with ones employment situation that is brought to the attention of management . Causes of Grievances Employment conditions Effect of trade unions Difference of Opinion Social Injustice Adherence to Rules Psychological Reason

Machinery for Redressal of Grievances