Master of Business Administration- MBA Semester 3 MU0012 Employee Relations Management (Book ID: B1230) Assignment Set- 2

Q1. What are the components of a Human Resource Information System? Answer:
Human Resource Information Systems is a software application that caters to the human resource information needs of the organisation like monitoring employee attendance, payroll and benefits administration, career development, employee information, performance management, and training. HRIS is a collection of components which work together to gather, process and store information that the HR department can use to make decisions, to coordinate and to plan its activities. HRIS facilitates easy access and management of employee related information. For example, Terasen Pipelines, a Canadian company was using a manual system to maintain its records. But when its workforce increased, it began to use an HRIS to maintain accurate employee records. Initially, mainframe computers were used by organisations to manage human resource management functions. A large amount of capital was needed to operate these systems. The advent of client-server architectures and Software as a Service (SaaS) models has lowered the maintenance costs of HRIS. HRIS comprises of the following modules: Payroll: This module of HRIS keeps track of the pay grades and positions of the employees. Pay raise details are also recorded. This module gathers information on employee time and attendance. It calculates the deductions and taxes and generates pay slips and tax reports. Cheques get automatically deposited in the employee bank accounts. Inputs for this module are obtained from HR and time keeping modules. This module integrates with the current financial systems of the organisation. Benefits Administration: This module tracks and administers employee benefits programmes. The benefits programmes include insurance, reimbursements, profit sharing and pension programmes. HR Management: This module covers many HR aspects which range from employee recruitment to retirement. It records employee details like addresses, training programmes undergone, skills, position and so on. The functions addressed by this module are recruitment, placement, evaluation and career development of the employees. Job sites on the Internet are increasingly being used for recruitment. This module tracks job applications. Interviews and selection details are also maintained. Training: This module administers and tracks employee training and development programmes. Records of employee education, qualification, and skills are maintained. It also outlines the training courses and training materials (CDs, books, web based learning programmes) which help employees develop their skills. Courses can be planned and scheduled using the data stored. Managers can approve training and budgets. Performance Appraisal: This module evaluates the job performance of employees in terms of quality, time and cost. This helps in analysis of employee strengths and weaknesses and suitability for promotions. It gives feedback to employees on performances and identifies employee training needs. It also documents criteria which can be used for organisational rewards. Work Time: This module helps to track the work done by the employees. This module merges the functions of work management and time management across a wide range of activities that include project, tasks, requests and deployment. This module maintains attendance and leave details of employees which are exported in various formats for further processing. Employee Self-Service: This module permits employees to update their personal details, query HR databases and perform HR transactions. Employees are allowed to apply for leave, raise purchase requests, file expenses, view their salary details and keep track of their project related activities. Employees use this to update their tax savings details and bank related information.

Q2. How are trade unions classified? Answer:

Trade unions are classified based on the type of people they represent. There are four types of trade union as given below: Craft of Skills Union: These unions represent skilled workers like Musicians Union (MU) Industrial Unions: These unions represent members of one particular industry such as Fire Brigades Union (FBU) General Unions: These unions represent workers from all types of industries and with any level or range of skills. For example, Amicus the Manufacturing Science and Finance Union (MSF) White-Collar Unions: These unions represent office workers, such as National Union of Teachers (NUT)

Craft of Skills Union Craft union is an arrangement of labour unions that joins workers within the same part of a craft or a skill. Some examples are typographical unions, unions for carpenters, stoneworkers, iron moulders, boilermakers, railway engineers and so on. These craft unions have substantial power in the workplace and generally resist others controlling their work processes and standards of training as their members have essential knowledge and physical and theoretical skills. Industrial Unions Industrial unionism is a labour union organising method through which all workers in the same industry are grouped into the same union, regardless of skill or trade. This gives workers in all industries more leverage in bargaining or when workers go on strikes. Advocates2 of industrial unionism value its contributions in promoting unity. They describe the solidarity of these unions with slogans like, an injury to one is an injury to all and the longer the picket line, the shorter the strike. An example for an industrial union is a union for oil workers. Members of such an industrial union would include people who are involved in exploration, extraction, refining, transport and all the other areas associated with the oil and gas industry. General Unions A general union is a type of trade union that represents workers from all industries. Unlike craft unions or industrial unions where just a particular sector forms a union, general union, as its name suggests, is for any worker irrespective of organisation or sector.General unions declare that their broader variety of members allows more opportunities for harmony action and better management in general strikes. Detractors claim that the broader dispatch means they tend to be more technical and respond less effectively to events in a single industry. An example of a general union in Australia is the Australian Workers Union. White-Collar Unions White-collar worker refers to a salaried person, who either works as an educated worker who performs semi-professional office, administrative or sales coordination tasks, or works in any service industry like a teacher, a software engineer or a customer care executive. White-collar workers, as opposed to bluecollar workers, perform no manual labour. White-collar union is a type of union that represents white-collar workers.

Q3. What are the provisions of the Factories Act 1948 that ensure social security measures of workmen in a factory? Answer:
Factories Act 1948 The Factories Act regulates labour employed in factories. It applies to the whole of India. This act applies to all factories which use power and employ 10 or more workers, and applies to factories not using power and employing 20 or more workers, on any day of the preceding 12 months. According to this act, every factory has to be registered and needs to obtain a licence for working which has to be renewed at periodical intervals. The plans, designs and specifications of any proposed construction or extensions to the factory have to receive the prior approval of the state government. The main provisions of this act are as follows: Facilities: It specifies the minimum requirements regarding health (cleanliness, ventilation and temperature, lighting and control of glare, etc.) safety (protection of eyes, handling of explosive and inflammable materials, etc.), and general welfare of workers (first-aid, canteens, shelter rooms, crches, urinals, drinking water etc.). Safety: Fencing of machinery needs to be done. Adequate fire-fighting facilities must be provided. Hoist and lifts have to be in good working condition. Stairs and passages have to be free from obstruction. Safety appliances to protect the eyes from dangerous dusts, gases, and fumes have to be provided. Pressure plants have to be regularly checked. Working Hours: The working hours cannot be greater than 48 hours in a week. Weekly holiday is mandatory. Compensatory holidays have to be given if the worker works on weekly holidays. A worker cannot be made to work for more than nine hours in a day. Half an hour rest is to be provided after five hours of work. Overlapping of shifts is not allowed. Overtime Wages: A worker has to be paid overtime wages at double the rate of regular wages if the worker works beyond 9 hours a day or 48 hours a week. Leave: A worker is permitted a leave of one day for every 20 days of work performed in the previous calendar year provided that the worker had worked for 240 days or more in the previous calendar year. Child Employment: Children below age of 14 cannot be employed. Children between 14 and 15 years of age can be employed only for 4.5 hours per day or during the night. Adolescents cannot work between 7 pm and 6 am. Obligation regarding Hazardous Processes and Substances: Provide Information about hazardous substances and processes and the dangers and health hazards involved. Ensure safety measures and make emergency plans. Appoint safety committees.

Q4 What are the reasons for maintaining good industrial relations in an organization? Answer:
Industrial Relations is the process of managing individual and collective relationship between the workers and the management in organisations so that, the needs of both the parties are met. Healthy Industrial Relations ensure harmony and progress. Good Industrial Relations is important not only for the employers and employees but also for the entire society. Unhealthy Industrial Relations are harmful to the industry and the nation. It results in wastage of resources, reduction of productive working days, and reduction of the national output. The creation and maintenance of Industrial Relations promotes industrial peace. It is important to ensure good Industrial Relations for the following reasons: Uninterrupted Production: Good Industrial Relations ensures continuity of production. Resources are fully utilised and production is maximised. All employees of the organisation are assured continuous work. Uninterrupted production is very important for organisations as some products act as inputs for other organisations; some products are exported, and some products are very essential for consumers. Reduction in Industrial Disputes: Good Industrial Relations help in reduction of industrial disputes. Resolution of disputes promotes harmony and cooperation within the organisation. Enhancement of Morale: Good Industrial Relations improve the morale of the employees. It increases employee involvement and commitment. Workers display more interest in achieving the organisational goals. Transformation of Attitudes: Good Industrial Relations enable employers and employees to view themselves as partners in the industry. Employees and employers recognise the rights and interests of the other. Reduces Wastage: Good Industrial Relations enhances co-operation. Wastages of time, resources, and materials are minimised. This in turn increases production. Increases Profit: Good Industrial Relations maintains competitive labour costs, increases production and thus increases profits. Thus, we see that good Industrial Relations is very important for the success of an organisation.

Q5. What are the four strategy levels in an organization? Answer:

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 corporate level, business-unit level, functional level and people level. Following are the different levels of strategies in an organisation.

Corporate Level Strategy Corporate level strategy is usually devised at the board level. It defines the following for an organisation:

-plan. management of the business portfolio.

ormed.

From the below mentioned figure you can see that the corporate strategy is influenced by the external environment, the people and systems within the organisation, the organisation structure, and resources within the organisation, the current values of the organisation and the expectations and objectives of the organisation.

Factors Influencing Corporate Strategy

Corporate strategy examines internal (within the company) and external factors (competitors, clients, customers), frames a new vision for the organisation and aligns policies, practices and resources to achieve that vision. It provides an overall direction to the organisation. The corporate visions of some organisations are listed below Life.

The corporate vision influences the business mission. A good business mission should be: Clear: It should be stated in a language that is easily understood by most of the employees. Achievable: The employees must feel that the organisation can achieve the specified objectives. Challenging: Each employee should exert as much effort as possible to contribute to the overall success of the mission. According to Johnson and Scholes, corporate strategy can be evaluated by the following criteria: and environment?

For example, Dell Computers is a leading PC supplier. The corporate strategy adopted by it is to deliver innovative and cost-effective solutions which address customer needs. Dell Computers tries to deliver this through its in-house Research and Development division and by forming strategic partnerships with top industry suppliers and original development manufacturers. 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:

.For example, the business strategy of a furniture manufacturer is decided by the following factors:

According to Porter (1985), the three basic factors that influence the decisions making process are: -wide recognition that the different products and services of the company are superior in quality when compared to that of the competitors.

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. According to Johnson and Scholes, functional strategy describes how the component parts of an organisation in terms of resources, processes, people and their skills are pulled together to form a strategic architecture which will effectively define the avenue. 2 Functional units help in framing the business and corporate strategies by providing input on resources and capabilities. Once the higher level strategies are framed, action-plans are framed for each department, in order to accomplish the higher level strategies. For example, when the corporate strategy of a business is being the lead player in a specific market, the functional strategies of each division would be as follows:

keting division: to increase sales by increasing advertising. The different kinds of functional strategies are e (issues like new products for existing markets or products for new markets), the production chain, etc. to be made are regarding budgets, liquidity issues, credits, cash flows, loans, capital investments etc. its work force. ation and development of new products, and the addition of new features in existing products. It is essential that various functional units organise themselves with care in order to achieve their aims and synergise with the rest of the business. 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. Research carried out by the Institute of Work Psychology and the Centre for Economic Performance shows a clear link between the adoption of good human resource business practices and improved performance. The research proves that focussing on key people management issues will improve productivity and profitability. People strategy aims to:

This develops a strong sense of loyalty to the organisation and its customers.

The culture of an organisation is defined by: ols of the organisation.

The five main features of people management are: strategic view of managing employees.

Q6. Imagine yourself as the HR Manager of a steel company and you find that for members of the production team in your organisation are in conflict and this has affected the productivity of the team. What steps will you take to resolve the conflict and improve the team productivity? Answer:
Conflict involves the struggle of a person with another person, or a thing. It is a problem or disagreement, a situation that needs resolution. Every employee faces an issue of conflict at work. Conflicts can be resolved if dealt the right way. Conflict resolution is the process of finding a solution to a conflict. Resolving conflicts effectively helps in increasing understanding of the conflicting people, increased team work as members develop stronger bonds and increased mutual respect, and improved self-knowledge as a testing time like a conflict helps examine oneself. On the other hand, if conflicts are not effectively resolved, it results damaging to the parties involved. If team members have conflicting goals and no solution is attained, it can lead to breaking the team. Employees with conflicting goals ultimately start disliking one another personally. Conflicts within the workplace that are not effectively and timely resolved, affect the organisation in the long run. Methods of Conflict Resolution There are several methods of conflict resolution. Some result is win-lose solutions, while others result in a win-win for the two parties involved in the conflict. The three methods commonly adopted are as follows: 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.

The mediator involves in structuring the meetings between the conflicting parties. A final decision is based on the facts presented through the discussions. Mediation is not a legal process, so if one of the conflicting parties is not satisfied with the process, they can approach a court of justice to further resolve their case. Mediators use appropriate techniques to improve talks between disputants. The aim of the mediator is to help the parties reach an agreement on the disputed matter. The conflicting parties view the mediator as impartial. A Employee third-party representative can mediate between unions and organisations. When workers of a union go on strike, a mediator (in some cases the government) is used to attempt settling the dispute and reaching an agreement between the union and the organisation. 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. The arbitrator reviews the case presented by both sides of the disputing teams. The arbitrator then imposes a decision that is legally binding for both sides. Arbitration offers a faster resolution than through a judicial system. It also avoids the costs of lengthy and costly legal expenses. Thus arbitration is a legal form of conflict resolution outside the courts. Compromise It is a method in which conflicting parties voluntarily engage in basic negotiation. Both parties give up something that they want to attain something they want even more. Compromises usually occur in win-lose situations, that is, in such situations, neither side gets everything they want. They lose something in order to gain something. Each party makes concessions to reach an amicable agreement that is acceptable to both.