Master of Business Administration- MBA Semester 3 MU0012 Employee Relations Management - 4 Credits (Book ID: B1230)

Q1.Explain the challenges that international employees encounter.

Recruiting: For job seekers exploring the international job market, finding lucrative, legitimate and interesting jobs can be difficult, despite the availability of Internet resources. Job seekers relying on job postings must filter through pages of brief descriptions and hope that their qualifications are well-received by potential overseas employers. For U.S.-based employers, recruiting job candidates from overseas isn't the most difficult task -- there are thousands of professionals seeking careers with U.S. companies. A bigger challenge for U.S. companies is identifying candidates for international assignments, either from its existing workforce or from the host countries. HR Practices Multinational corporations face the challenge of developing human resources initiatives for countries whose employment laws and social practices differ from U.S. laws and social considerations. For instance, U.S. labour and employment laws pertaining to collective bargaining rights differ from similar regulations in European nations. This means companies operating in international markets require human resource professionals who possess knowledge and expertise in employment practices for a number of overseas locations. This may require recruiting human resources experts from those countries to assist U.S. companies with developing fair employment policies and understanding the cultural norms and social practices of international workers. Expatriation:
Expatriate employees -- referred to as "expats" -- are those who leave

their home country to work abroad. Expatriation is the process of preparing employees for relocating to another country. An expat agreement addresses matters not usually covered by a typical employment contract. For instance, an employer may require that employees model company ethics and philosophy to preserve the employer's global business reputation. In addition, an expatriate agreement sets forth conditions of employment such as term length, compensation, incentive and other international expenses. Logistics:

When U.S. workers accept career opportunities in another country, the human resources department constructs agreements for the safe and efficient relocation and transfer of employees and families.

If foreign language skills are a job requirement, the company may provide the resources for such education. Housing accommodations, spousal employment, dependent education and household goods shipments are some of the challenges of international relocation handled by a human resources staff member. Repatriation: Repatriation begins when an expatriate employee completes her assignment and returns to her home country. Often, employees need help readjusting to life at home. Depending on the length of the assignment, employees may have to be re-integrated to the workplace. If an expat has sold his home and uprooted his family, the employer generally absorbs the expenses of these repatriation steps to enable a smooth transition into the workplace. Repatriation can present a challenge in terms offending the process.

Work Visas: Sponsoring work visas for international workers can be one of the most difficult challenges in the international job market for political and logistical reasons. Work visas can be costly and extremely timeconsuming because of the amount of paperwork necessary, the limited number of visas available and the lottery-type processes for obtaining visas for prospective employees from other countries. Companies also may have to deal with the negative implications of hiring workers from outside the country. Guaranteeing job security based on work visas can be perceived as innovative or unsettling, depending on how effective global corporations are at managing international employment.

Q2.Describe the different systems in an organisation that use Employee Relation Management tools.
Human Resource vendors as well as Customer Relationship Management Vendors are trying to offer solutions for Employee Relationship Management. Employee Relationship Management is a science as old as business itself. One of the first technologies to improve employee relationship was the telephone and later the fax. So what is Employee relationship management all about? Defining employee relationship management is more difficult than defining something like Customer Relationship management. The nature of the relationship between a company and employee is far more complex than the relationship with customers. Customers simply go off to competitors when the relationship is not working while unhappy employees can remain for long periods in the company. Customers only experiences the company at some key points of truth while employees are daily experiencing a relationship with their employer. The employee experience the relationship with the employer from the moment the employee enters into a workspace. Their moments of truth is overshadowed by a total experience over a period of time. The question is however: "Why do we need Employee Relationship Management?". Before answering this question we need to reflect on what constitutes a relationship.

We have a relationship between two parties when; - they feel close to each other, - they have report with each other, - they interact well, - they communicate, - they are sympathetic to each other - they are responsive, - they feel empathy with each other. A good relationship is a relationship where there is a reciprocal exchange of value between two parties. Both parties must want to be part of that relationship and contribute to the relationship to work. We believe that Employee Relationship Management will improve productivity by improving: Employee Employee Employee Employee Employee morale loyalty turnaround communication change readiness

The problem with a relationship is that it is much like an iceberg. The visible part of the relationship is only the tip of the iceberg that is visible above the water level. Most of the factors that determine the quality of a relationship is beneath the water. All these are done with the aim of improving productivity rather than interacting with employees. The question is: Can Technology can help improve employee relationships especially if such a large part of the relationship is based on hidden element? Technology has already contributed to improving employee relationships: - Companies already employ HR systems to ensure that employees get paid out the correct salaries on time - HR system allows employees to manage training as well as their leave. - Advance companies have performance measurement systems that assist with the monitoring and feedback of performance by linking it to bonus schemes. - Work flow systems help to manage and coordinate the flow of work to and from employees. - Organisational structure diagramming helped to make reporting lines and responsibilities clear. - Business information management technologies provide employees with up to date information. - Knowledge management technologies help employees to share knowledge of what is happening in the company. - Email, company portals and electronic calendars are already tools in use in most companies. - Chief Executives have use blogging as a means to directly communicate with employees. - Online self-training courses helps employees to stay up to date with the

latest developments in the industry These technologies improved efficiencies rather than relationships. The question is: "Can these technologies really help to improve employee relationships?" I think they can if these technologies are integrated and shaped around the needs of each employee. A company will benefit only from Employee Relationship Management technologies if there are clear guidelines and rules of how these technologies should be used. A culture that values the employee must pervade the organisation before these technologies can begin to make a positive contribution. Without a clear management adoption of employee centred values these technologies can become a destructive force which spread a negative morale rather than a positive one. Employee relationship management tools breaks down the dependency on hierarchical command and control systems and introduces more and more a self-organizing culture of employees that are networked to colLabourate on points of need. Technology can definitely assist but old style interpersonal skills and conflict resolution techniques are still forming the baseline requirements for effective Employee Relationship Management.

Q3.Every organisation faces disciplinary problems from employees. Explain the major types of disciplinary problems faced in organisations.
The term DISCIPLINE refers to a condition in the organization when employees conduct themselves in accordance with the organization's rules and standards of acceptable behaviour i.e. members of the organization/firm conform with what is considered proper behaviour because they believe it is the right thing to do. Discipline can also be defined as a force that prompts individuals and groups to observe rules, regulations, systems, processes and procedures, which are considered necessary for the effective functioning of an organization. Types of Discipline Problem: We could list several dozens of incidents that might need disciplinary action within an organization. Small or big, product or service industries, we have kinds of disciplinary problems that we usually observe. These include: Absenteeism, Insubordination, Violation of organizational rules, Gambling, Damage/misuse of office equipments and property, Non-performance of duty, Negligence of duty, Punctuality, Loafing/Tardiness, Fighting, Drugs/Drunken-ness, Stealing, fraudulence, sexual abuse etc. However, for the sake of simplicity, we can classify discipline related problems into four broad categories as under: Attendance On-the-job behaviour Dishonesty and Outside activities Attendance: One of the most frequent occurrence and serious problems faced by the organization is attendance of the employee at work. In a study with 200 organizations most of which employed over one thousand employees, found that

absenteeism, tardiness, abuse of sick-leaves and other aspects of attendance were rated as the foremost problems by 80%. Importantly, attendance problems appear to be even more widespread than those related to productivity such as carelessness, negligence at duty or not following working procedures. On-the-Job Behaviour: This kind of indiscipline is basically, infraction of company rules. Here discipline covers on-the-job behaviour that include insubordination, horseplay, fighting, gambling, failure to use safety devices, carelessness, and most importantly, a widespread problem in organizations today abuse of alcohol and drugs.The above actions reflect direct infractions of organization rules. For eg. Disobeying/disregarding Boss's orders, ignoring safety procedures or being intoxicated on the job are all behaviour that is usually expressly forbidden. Arriving at work drunk or consuming alcoholic drinks on the job is an age-old problem. The use of drugs on-the-job is a newer version of problem while more and more employees have experienced with drugs off-theJob. Dishonesty: Dishonesty is traditionally the most severe disciplinary problem found in the corporate world. One study found that 90% of the surveyed organizations would discharge an employee for theft, while, 88% would discharge those employees who were found to have falsified information on their employment application. These findings reflect the strong cultural norms held in North America against dishonestly. Furthermore, it is believed rightly or wrongly, that an employee who lies or steals once cannot be trusted and should be separated from the organization. Outside Activities: This category covers activities that employees engage in outside of their work and somewhat either affects their on-the-job performance or generally reflected negatively on the organization's image. The activities include are unauthorized strike, having one's wages garnisheed, outside criminal activities and working for a competing organization. Also, among managerial personnel, this category includes badmouthing the organization in public. Q4.What are the benefits that an organization enjoys by implementing employee participation? Employee engagement can be critically important to competitiveness in the contemporary business environment. The Gallop Organization, which studied employee engagement in 7,939 business units in 36 companies, found that employee engagement was positively associated with performance in a variety of areas, including increased customer satisfaction, profitability and productivity, and reduced employee turnover. The breadth of employee engagement was substantial. About 2/3 of the business units scoring above the median on employee engagement also scored above the median on performance, while only about 1/3 of companies below the median on employee engagement scored above the median on performance (Harter, Schmidt & Hayes, 2002). Employee engagement has three related components: a cognitive, an emotional, and a behavioural aspect. The cognitive aspect of employee engagement concerns employees beliefs about the organization, its leaders, and working conditions. The emotional aspect concerns how employees feel about each of those three factors and whether they have positive or negative attitudes toward the organization and its leaders. The behavioural aspect of employee engagement is the value-added component for the organization and consists of

the discretionary effort engaged employees bring to their work in the form of extra time, brainpower and energy devoted to the task and the firm. This article focuses on what managers can do to achieve a high level of employee engagement. Recent research suggests that high-involvement work practices can develop the positive beliefs and attitudes associated with employee engagement, and that these practices can generate the kinds of discretionary behaviour that lead to enhanced performance. The section immediately below describes high- involvement work practices and how they are utilized in both manufacturing and service settings. The next section outlines the evidence for the effectiveness of these practices. The final section discusses the implementation process and argues for the importance of embracing a participatory philosophy in order to align the process with the concept of high involvement. Evidence of the effectiveness of high-involvement work practices has been documented in several research studies. The multivariate statistical analyses conducted on the research data introduce statistical controls for a variety of factors extant in the environment in order to rule them out as plausible alternative explanations for the findings. As a result, fairly strong inferences can be drawn regarding the impact of the high-involvement management system. The results of this research are impressive. The early research examined the impact of high- involvement work systems in manufacturing organizations. The development of the Saturn Corporation within General Motors constituted a demonstration project for, a radically new organizational form in which work would be organized into teams, work rules would be drastically simplified, and the union would be a full partner in decision making from the bottom to the top of the organization. The project has been largely considered a success. For instance, the J. D. Power and Associates statistics on customer satisfaction showed that in 1992 and every year since, Saturn has led all U.S. car lines and all brands worldwide except for Lexus and Infiniti (Acura and Mercedes in 1997 only) in ratings of vehicle quality, reliability and satisfaction. Researchers and academics have examined the implementation of the Modern Operating Agreement (MOA) between the Chrysler Corporation and the United Automobile Workers (UAW), which was signed and ratified in six Chrysler plants by 1987. The MOA reduced job classifications, tied pay to skills within those classifications, established joint consultation committees, and reorganized work into shop-floor teams. A survey company contacted 782 unionized production workers at their homes 5-6 years after the signing of the MOA contracts. Sixtyfour per cent of those contacted stated they were satisfied or very satisfied with the MOA, 68% agreed or strongly agreed that they preferred the MOA to the previous system, and 76% agreed or strongly agreed that they preferred the team system to the old system. In another study, Eileen Appelbaum and her colleagues (2000) studied 15 steel mills, 17 apparel manufacturers, and 10 electronic instrument and imaging equipment producers. Their purpose was to compare traditional production systems with flexible high performance production systems involving teams, training, and incentive pay systems. In all three industries, the plants utilizing high involvement practices showed superior performance. In addition, workers in the high-involvement plants showed more positive attitudes, including trust, organizational commitment and intrinsic enjoyment of the work.

Larger studies have confirmed the positive effects of high-involvement work practices in manufacturing. Jeffrey Arthurs 1994 study of 30 steel mini mills in the U.S. in 1988-89 showed that the mills with commitment systems involving more employees training and more employee participation in solving production problems had higher productivity, lower scrap rates, and lower employee turnover. John Paul MacDuffies 1995 study of an international database examining 62 automobile assembly plants in 1989-90 found that flexible production plants with high-involvement practices such as team-based work systems, contingent compensation, and extensive employee training consistently outperformed traditional plants in terms of both productivity (labour hours per vehicle) and quality. In 2005, Deepak Datta and his colleagues analysed survey responses from 132 U.S. manufacturing firms and found that firms utilizing highperformance work systems showed significantly higher labour productivity than their competitors. More recent researchers have asked the question of whether high-involvement work practices can be generalized to the service industry sector. Once again, impressive results have been documented. Two studies of employees in the life insurance industry examined the impact of employee perceptions that they had the power to make decisions, sufficient knowledge and information to do the job effectively, and rewards for high performance. Both studies included large samples of employees (3,570 employees in 49 organizations and 4,828 employees in 92 organizations). In both studies, high-involvement management practices were positively associated with employee morale, employee retention, and firm financial performance. Another recent study has tested high-involvement work practices in a call centre environment. In a field experiment, 149 call centre employees were randomly assigned to either high involvement work practices, autonomous teams, aligned job design (essentially new performance metrics aligned with the business strategy), or the traditional management system. Findings comparing pre- and post-test scores showed substantial improvement in organizational commitment and intrinsic job satisfaction in the high-involvement work practices group compared to no change for the control group or the autonomous work team group, and impact on organizational commitment only for the aligned job design group. The high-involvement work practice group also showed the most improvement in performance on a variety of measures.

Q5.What are the different leadership styles that are adopted by managers as per the Managerial Grid Model?

The indifferent (previously called impoverished) style (1,1): evade and elude. In this style, managers have low concern for both people and production. Managers use this style to preserve job and job seniority, protecting themselves by avoiding getting into trouble. The main concern for the manager is not to be held responsible for any mistakes, which results in less innovative decisions. The accommodating (previously, country club) style (1,9): yield and comply. This style has a high concern for people and a low concern for production. Managers using this style pay much attention to the security and comfort of the employees, in hopes that this will increase performance. The resulting atmosphere is usually friendly, but not necessarily very productive.

The dictatorial (previously, produce or perish) style (9,1): control and dominate. With a high concern for production, and a low concern for people, managers using this style find employee needs unimportant; they provide their employees with money and expect performance in return. Managers using this style also pressure their employees through rules and punishments to achieve the company goals. This dictatorial style is based on Theory X of Douglas McGregor, and is commonly applied by companies on the edge of real or perceived failure. This style is often used in cases of crisis management. The status quo (previously, middle-of-the-road) style (5,5): balance and compromise. Managers using this style try to balance between company goals and workers' needs. By giving some concern to both people and production, managers who use this style hope to achieve suitable performance but doing so gives away a bit of each concern so that neither production nor people needs are met. The sound (previously, team style) (9,9): contribute and commit. In this style, high concern is paid both to people and production. As suggested by the propositions of Theory Y, managers choosing to use this style encourage teamwork and commitment among employees. This method relies heavily on making employees feel they to be constructive parts of the company. The opportunistic style: exploit and manipulate. Individuals using this style, which was added to the grid theory before 1999, do not have a fixed location on the grid. They adopt whichever behaviour offers the greatest personal benefit. The paternalistic style: prescribe and guide. This style was added to the grid theory before 1999. In The Power to Change, it was redefined to alternate between the (1,9) and (9,1) locations on the grid. Managers using this style praise and support, but discourage challenges to their thinking.

Q6.Suppose you are the HR Manager of a software company that is facing severe financial loss due to recession. What action would you take to keep your employees positive and motivated? Answer: As a HR manager I would take the following actions for motivating employees. 1. Recognition of individual differences: Employees are not homogenous. They differ in terms of attitudes, personalities, needs, etc. The management should therefore recognize these differences and motivate workers. 2. Matching the people to jobs: People with high growth needs perform better on challenging jobs. An organization will benefit if the right job is given to the right person. Achievers do their best when the job provides opportunities to participate in setting goals and when there is autonomy and feedback. 3. Goals: Provision of specific goals makes employees know what he is doing and what the management expects from him. Making people understand that they can achieve the goals in a smooth way is very important. If the management expects resistance to goals, they can invite people to participate in the goal setting process.

4. Individualistic rewards: The management must use rewards selectively, keeping in mind the individual needs of employees. What acts as a motivator for one may or may not motivate another employee. Therefore rewards like pay, promotion, autonomy must be used keeping the mental state of employees. 5. Linking rewards to performance: Employees should be rewarded immediately after attaining the goals. Managers should publicize openly the award of performance bonus, lump sum payments to employees for showing excellence and this will go a long way in increasing the awareness of people regarding the reward-performance link. 6. Checking the system for equity: The inputs for each job in the form of experience, abilities, effort, special skills must be weighed carefully before arriving at the compensation package for employees. Employees must see equity between the rewards/recognition obtained from the organization and the efforts put by them. Non-financial incentives: Incentives which cannot be offered in terms of money are known as non-monetary incentives. Very often, money alone is not the motivator. Higher level needs, like, status, recognition, etc of employees are also to be satisfied. People working at a higher level do not always work for money. They expect a challenging job that allows them to use their talents fully. Organizations have developed a variety of incentives to meet higher order needs of people. These can be classified as follows: Individual incentives: Under this we have the following: o o o o o Status: is the ranking of positions, rights and duties in an organization. Middle and higher level employees prefer escalations in status to increment in pay. Promotion: is the vertical movement of a person in an organization. Promotions are accompanies by higher responsibilities, higher prestige and power. Promotions are generally dependent on good performance. Responsibility: People want to handle responsible and challenging jobs. If the job is responsible, it satisfies people in more than one way. Recognition of work: Managers can motivate people by showing appreciation when an individual does an outstanding job. Recognition and appreciation will have a tonic effect on the psychology of employees. Job security: People want secure jobs. They want to be sure about their future income and job continuation.

Group incentives: 1. Social importance of work: People want jobs with high social status. High status jobs enhance the social status of an individual in the society. Some people may even be willing to accept such jobs even if the pay is less. 2. Team spirit: People prefer to work in well-knit groups. Organizations encouraging employees to work in a team attract people automatically. 3. Healthy competition: Promoting healthy competition among employees through carefully chosen reward schemes motivates people to work harder. Organizational incentives:

1. Participation: People prefer organizations that offer good opportunities to participate in decision making process. Participation enables people to offer valuable suggestions and they feel proud when these are actually translated into action. 2. Good human relations: A positive work climate where people are treated with respect is an important reward. It makes people to work with enthusiasm and spirit and contribute their best. 3. Morale: Morale refers to the atmosphere created by the attitudes of the members of the organization. Poor morale is not in the interest of the organization. The warning signals like absenteeism, strikes, high attrition, etc. are to be viewed seriously in the initial stages it by the management. 4. Communication and discipline: Proper communication and good disciplinary procedures enable people to work with confidence and along the prescribed routes. The behaviour of the employees is consistent with goals and the chances of meeting the goals are high. Motivational techniques in practice: Organizations continue to experiment to evolve different kinds of techniques to motivate people at work. The techniques are developed by behavioural scientists giving equal importance to intrinsic and extrinsic factors of job at work. The following are some of the best motivational techniques in force in different organizations: MBO: Management by Objectives encompasses specific goals particularly set for an explicit time period with feedback on goal progress. Employee involvement: A participative process that is designed to encourage increased commitments of the employees. Participative management: A process where subordinates share a s significant degree of decision making power with their immediate supervisors. Board of representatives: Forms of participation in which representatives of employees sit with the companys Boards of Directors and present the employees interests. Quality circle: A work group of employees, who meet regularly to discuss their quality problems, investigate causes, recommend solutions and take corrective actions. Profit sharing plans: Organizations may have programs that distribute compensation based on some established formula designed around the companys profitability. Gain sharing: An incentive plan where improvements in group productivity determine the total amount of money that is allocated. Flexible benefits: Employees tailor their benefit program to meet their personal needs by choosing and picking from a menu of benefit options. Comparable growth: A doctrine which holds that jobs equal in value to an organization should be equally compensated, whether or not the work content of these jobs are similar.

Master of Business Administration- MBA Semester 3

MU0012 Employee Relations Management - 4 Credits (Book ID: B1230)

Q1.What are the components of a Human Resource Information System?
A human resources information system (HRIS) is a software package developed to aid human resources (HR) professionals to manage data. Human resource professionals utilize these systems to facilitate work flow, improve efficiency and store and collect information. Several companies offer HRIS packages to employers. HRIS packages can be customized to the specific needs and requirements of the employer. Database: HRIS core offering includes a database to store employee information. HR professionals can input all personnel data into the system, which can be accessed from anywhere, around the clock. Types of data that HR professionals collect in the database include compensation history, emergency contact information and performance reviews. The core database can also be viewed as an online backup for paper files. Time and Labour Management: Time and Labour management can be time consuming. HRIS packages allow employees to input their own hours worked and allows managers to immediately verify vacation requests, and the data is directly fed to payroll. Time and Labour management also improves the HR department's ability to track attendance and punctuality. Payroll: Another core component of an HRIS is the payroll function. HR can easily download or upload employee hours and issue checks or payroll deposits to employees. Salaried employees can also be paid automatically with significantly reduced risk for error. The HRIS payroll software usually improves tax compliance for locations with multiple tax levels. The HRIS payroll function stores payroll registers and tax filing reports in accordance with legal requirements. Benefits Some HRIS packages allow employers to establish and maintain medical benefits and retirement investments through their software. Such applications allow employers to have a one-stop shopping experience for all of their human resources data management needs. Other HRIS packages facilitate medical benefit and retirement investment deductions for payroll but not the establishment of those benefits.

Employee Interface: Most HRIS packages allow for an employee to have limited user access. Employee users access a part of the database wherein they can update their personal information, review pay stubs, change retirement selections, update direct deposit information or download benefit election documents.

Q2.How are trade unions classified?

Classification of trade unions is based upon ideology, trade and agreement. Classification based on ideology a. Revolutionary Unions: Believe in destruction of existing social/economic order and creation of a new one. They want shift in power and authority and use of force - Left Unions. b. Reformist or Welfare Unions: Work for changes and reforms within existing socio-political framework of society - European Model. c. Uplift Unions: Advocate extensive reforms well beyond the area of working condition i.e., change in taxation system, elimination of poverty etc. Classification based on trade: 1. Many unions have memberships and jurisdictions based on the trades they represent. The most narrow in membership is the craft union, which represents only members certified in a given craft or trade, such as pipe fitting, carpentry, and clerical work. Although very common in the western world, craft unions are not common in countries like India and Sri Lanka. 2. At the other extreme in terms of the range of workers represented in the general union, which has members drawn from all trades. Most unions in India and Sri Lanka are in this category. 3. Another common delineation of unions based on trades or crafts is that between so called blue-collar workers and white-collar workers. Unions representing workers employed on the production floor, or outdoor trades such as in construction work, are called blue-collar unions. In contrast, those employees in shops and offices and who are not in management grades and perform clerical and allied functions are called white-collar workers. 4. In addition, trade unions may be categorised on the basis of the industry in which they are employed. Examples of these are workers engaged in agriculture of forestry: hence agricultural labour unions or forest worker unions. Classification based on agreement: Another basis on which labour agreements are sometimes distinguished is on basis of the type of agreement involved, based on the degree to which membership in the union is a condition of employment. These are: a. Closed Shop: Where management and union agree that the union would have sole responsibility and authority for the recruitment of workers, it is called a Closed Shop agreement. The worker joins the union to become an employee of the shop. The Taft-Hartley Act of 1947 bans closed shop agreements in the USA, although they still exist in the construction and printing trades. Sometimes, the closed shop is also called the 'Hiring Hall.' b. Union Shop: Where there is an agreement that all new recruits must join the union within a fixed period after employment it is called a union shop. In the USA where some states are declared to be 'right-to-work'. c. Preferential Shop: When a Union member is given preference in filling a vacancy, such an agreement is called Preferential Shop.

d. Maintenance Shop: In this type of arrangement no compulsory membership in the union before or after recruitment exists. However, if the employee chooses to become a member after recruitment, his membership remains compulsory right throughout his tenure of employment with that particular employer. This is called maintenance of membership shop or maintenance shop. e. Agency Shop: In terms of the agreement between management and the union a non-union member has to pay the union a sum equivalent to a member's subscription in order to continue employment with the employer. This is called an agency shop. f. Open Shop: Membership in a union is in no way compulsory or obligatory either before or after recruitment. In such organisations, sometimes there is no union at all. This is least desirable form for unions. This is referred to as an open shop.

Q3.What are the provisions of the Factories Act 1948 that ensure social security measures of workmen in a factory?
Objectives and Applicability of Factory Act: The Factories Act regulates the conditions of work (health, safety, etc) in factories. It safeguards the interests of the workers and it is for the welfare of the factory workers. The act received the assent of Governor General of India on September 23, 1948 and came into force on April 1, 1949. This act was further amended many times. The act is applicable to any factory in which ten or more than ten workers are working. The act has a provision in respect of: a) Employee health and safety, b) Hours of work, c) Sanitary conditions and wholesome work environments, d) Employee welfare, e) Leave with wages, etc. Scope of the Factory Act 1948: Regulate working condition in the factories. Basic minimum requirements for ensuring safety, health and welfare of workers Applicable of all workers Applicable to all factories using power and employing 10 or more workers and if not using power, employing 20 or more workers on any day of the preceding 12 months Main provisions of Factory Act 1948: Compulsory approval, licensing and registration of factories Health measures Safety measures Welfare measures Working hours Employment of women and young persons Annual leave provision Accident and occupational diseases Dangerous operations

 Penalties Obligations and rights of employees Safety Provisions of the Act: Fencing of machinery: Each and every dangerous hazardous and moving part of machinery shall be securely fenced by safeguards of substantial Construction, which shall be constantly maintained and kept in position while the parts of machinery they are fencing are in motion or in use. Work on near machinery in motion: There in any factory it becomes necessary to examine any part of machinery, such examination or operation shall be made or carried out only by a specially trained adult male worker wearing tight fitting clothing. Such worker shall not handle a belt at a moving pulley unless the belt is not more than fifteen centimetres in width. No woman or young person shall be allowed to clean, lubricate or adjust any part of a prime mover or of any transmission machinery while the prime mover or transmission machinery is in motion. Employment of young persons on dangerous machines No young person shall be required or allowed to work at any unless he has been fully instructed as to the dangers arising in connection with the machine and the precautions to be observed and has received sufficient training in work at the machine. Striking gear and devices for cutting off power In every factory- (a) suitable striking gear or other efficient mechanical appliance shall be provided and maintained and used to move driving belts to and from fast and loose pulleys which form part of the transmission machinery, such gear or appliances shall be so constructed, placed and maintained as to prevent the belt from creeping back on to the fast pulley. Self-acting machines No traversing part of a self-acting machine in any factory and no material carried thereon shall, if the apace over which it runs it a space over which any person is liable to pass, whether in the course of his employment or otherwise, be allowed to run on its outward or inward traverse within a distance of forty-five centimetres from any fixed structure which is not part of the machine. Casing of new machine In all machinery driven by power and installed in any factory after the commencement of this Act, every set screw, bolt or key on any revolving shaft, spindle, and wheel pinion shall be so sunk, encased or otherwise effectively guarded as to prevent danger. Prohibition of employment of women and children near cotton openers No woman or child shall be employed in any part of a factory for pressing cotton in which a cotton-opener is at work. Hoists and lifts In every factory every hoist and lift shall be (i) of good mechanical construction, sound material and adequate strength; and (ii) properly maintained, and shall be thoroughly examined by a competent person at least once in every period of six mouths. Every hoist-way and lift-way shall be sufficiently protected by an enclosure fitted with gates, and the hoist or lift and every such enclosure shall be so constructed as to prevent any person or thing from being trapped between any

part of the hoist or lift and any fixed structure or moving part. Revolving machinery In every factory in which the process of grinding is carried on there shall be permanently affixed to or placed near each machine in use a notice indicating the maximum safe working peripheral speed of every grindstone or abrasive wheel, the speed or the shaft or spindle upon which the wheel is mounted, and the diameter of the pulley upon such shaft or spindle necessary to secure such safe working peripheral speed. Pressure plant If in any factory, any plant or machinery or any part thereof is operated at a pressure above atmospheric pressure, effective measures shall be taken to ensure that the safe working pressure of such plant or machinery or part is not exceeded. Floors, stairs and means of access All floors, steps, stairs, passages and gangways shall be of sound construction and properly maintained and shall be kept free from obstructions and substances likely to cause persons to slip, and where it is necessary to ensure safety, steps, stairs, passages and gangways shall be provided with substantial handrails. Pits, sumps, openings in floors etc. In every factory fixed vessel, sump, tank, and pit or opening in the ground or in a floor which, by reasons of its depth, situation, construction or contents, is or may be a source of danger, shall be either securely covered or securely fenced. Excessive weights: No person shall be employed in any factory to lift, carry or move any load so heavy as to be likely to cause him injury. Protection of eyes The State Government may by rules require that effective screens or suitable goggles shall be provided for the protection of persons employed on, or in the immediate vicinity of, the process. Precautions against dangerous fumes, gasses etc. No person shall be required or allowed to enter any chamber, tank, pit, pipe or other confined space in any factory in which any gas, fume, vapour or dust is likely to be present to such an extent as to involve risk to persons employed there. Explosive or inflammable dust, gas etc. Where in any factory any manufacturing process produces dust, gas, fume or vapour of such character and to such extent as to be likely to explode to ignition, all practicable measures shall be taken to prevent any such explosion by: Effective enclosure of the plant or machinery used in the process; Removal or prevention of the accumulation of such dust, gas, fume or vapour; Exclusion or effective enclosure of all possible sources of ignition Precautions In case of fire In every factory, all practicable measures shall be taken to prevent outbreak or fire and its spread, both internally and externally, and to provide and maintain safe means of escape for all persons in the event of a fire, and the necessary equipment and facilities for extinguishing fire. Effective measures shall be taken to ensure that in every factory all the workers are familiar with the means of escape in case of fire and have been adequately trained in the routine to be followed in such cases. Safety of building and machinery:

 If it appears to the Inspector that any building or part of a building or any part of the ways, machinery or plant in a factory is in such a condition that it is dangerous to human life or safety, he may serve on the occupier or manager or both of the factory an order in writing specifying the measures which in his opinion should be adopted, and requiring them to be carried out before a specified date. Safety officers In every factory, wherein one thousand or more workers are ordinarily employed, or wherein, in the opinion of the State Government, any manufacturing process or operation is carried on, which process or operation involves any risk of bodily injury, poisoning or disease, or any other hazard to health, to the persons employed in the factory, the occupier shall, if so required by the State Government by notification in the Official Gazette, employ such number of Safety Officers as may be specified in that notification.

Q4.What are the reasons for maintaining good industrial relations in an organization?
Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of Labours and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (Labour) and employers (management). Concept of Industrial Relations: The term Industrial Relations comprises of two terms: Industry and Relations. Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged. By relations we mean the relationships that exist within the industry between the employer and his workmen. The term industrial relations explain the relationship between employees and management which stem directly or indirectly from union-employer relationship. Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated. The term industrial relations have a broad as well as a narrow outlook. Originally, industrial relations were broadly defined to include the relationships and interactions between employers and employees. From this perspective, industrial relations cover all aspects of the employment relationship, including human resource management, employee relations, and union-management (or Labour) relations. Now its meaning has become more specific and restricted. Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and Labour-management relations, while human resource management is a separate, largely distinct field that deals with non-union employment relationships and the personnel practices and policies of employers. The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships

employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. Industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises.

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

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. Let us now examine each level of strategy that exists in an organisation in detail. 1. Corporate Level Strategy Corporate level strategy is usually devised at the board level. It defines the following for an organisation: The overall mission. The game-plan. The management of the business portfolio. The priorities of each business unit regarding resource allocation. The structuring of the business. The methods of financing the business. The alliances to be made. The acquisitions/ mergers to be performed.

Figure : depicts the factors which influence corporate strategy. Figure : Factors Influencing Corporate Strategy From 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. 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 GE (General Electric): We bring good things to Life. Microsoft: To enable people and businesses throughout the world to realise their full potential. 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:

 Suitability: Is the strategy economically viable? Is it suitable to the current corporate capabilities and environment? Feasibility: Are the resources (finance, people, time, knowledge etc.) available to implement the strategy? Acceptability: Will the stakeholders (shareholders, employees, customers) react favourably to the strategy? 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 try to deliver this through its in-house Research and Development division and by forming strategic partnerships with top industry suppliers and original development manufacturers. 2. 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: The methods the organisation uses to compete in particular markets The new opportunities that the organisation identifies or creates The products or services to develop The customers that the organisation targets For example, the business strategy of a furniture manufacturer is decided by the following factors: The type of furniture the furniture manufacturer wants to market (home furniture, office furniture etc.) The competitors who market similar furniture The quality of furniture the furniture manufacturer wants to market (solid wood, plywood) The customers the furniture manufacturer targets (individual customer, corporate, educational institutions) According to Porter (1985), the three basic factors that influence the decisions making process are: Cost leadership: It aims to offer lower costs than the competitors without lowering quality. Product differentiation: It tries to achieve industry-wide recognition that the different products and services of the company are superior in quality when compared to that of the competitors. Specialisation by focus: It tries to establish a niche market. 3. 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.
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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: Manufacturing division: to produce good quality goods. Human resource division: to train staff in order to have a highly skilled workforce.

 Marketing division: to increase sales by increasing advertising. The different kinds of functional strategies are Marketing strategy: It deals with pricing, selling and distributing a product. Production strategy: It deals with what products to produce (issues like new products for existing markets or products for new markets), the production chain, etc. Finance Strategy: It aims to align the financial management of the organisations with its mission and goals. The decisions to be made are regarding budgets, liquidity issues, credits, cash flows, loans, capital investments etc. Human Resource Management (HRM) strategy: It deals with managing an important asset of the organisation its work force. R & D strategy: It deals with issues like innovation 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. Let us now analyse the concepts of people strategy. 4. 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 adoptions 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: Ensure that the employees are satisfied with their jobs, working environment, rewards and career prospects. Develop employee commitment by motivating them to move beyond contractual obligations to emotional commitment. This develops a strong sense of loyalty to the organisation and its customers. Manage organisation culture by concentrating on the important cultural aspects of the organisation. The culture of an organisation is defined by: The artefacts and symbols of the organisation. The stories and myths within the organisation about its various successes or failures. The rites and rituals that define employee behaviour. The rules and procedures that set parameters for employee behaviour and action. The role models within the organisation. The beliefs, values and attitudes reflected in the daily activities. The ethical standards which set the boundaries of acceptable behaviour. The five main features of people management are: Developing a strategic view of managing employees. Involving employees in the business. Investing in communication. Managing employee performance. Viewing employees as individuals. Developing a Strategic View of Managing People: An organisation must ensure that its people are at the centre of any strategic business planning. The key issues that an organisation must address while planning its business strategy are:

 Are the right knowledge, skills and competencies available within the organisation? Should people be recruited from outside? Can the knowledge, skills and competencies of the people be developed to explore new business opportunities? Involving People in the Business: Emphasis on team work will involve employees in the business. Teams need: More autonomy and freedom for self-management. Clear objectives and targets. The freedom to plan and undertake work, acquire resources and improve the processes, products and services. Investing in Communication To be successful, an organisation must invest heavily in communications. Businesses that show a high growth have implemented the following in enhancing communication within the organisation: Communicate their business strategy to all employees Give feedback on performance to all employees regularly Use a wide range of communication methods Managing Employee Performance: Employees perform well if they Know what they have to do Get feedback on their performance Know the areas in which they have to improve Know how they can improve themselves If employee expectations are not well defined, it can lead to low morale, dissatisfaction, absenteeism and high turnover. Viewing Employees as Individuals: High performing organisations view people as individuals and use techniques of involvement which encourage satisfaction and commitment.

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?
I will try to identify the reasons of conflict. What is the reason of conflict among the following reasons? Territorial perceptions: People involved in the conflict may feel that the other party has violated agreed or implied operating territorial boundaries. Personality differences: Rivalries, jealousies, personality clashes, and power struggles can cause conflicts between individuals. We have to keep the following factors in mind while assessing the potential for conflicts in workplaces: Nature of work Structure and division of work

 Personality and objectives of individuals Organisational ethics, beliefs, values and expectations Organisational culture Past attitudes and approaches towards management or staff Present attitudes and approaches to employee relations Future plans for employee relations 2. Identifying the Different Aspects of Organisational Conflict: You now know some of the causes of conflicts in an organisation. Let us look into the different aspects of organisational conflict. There are four aspects of organisational conflict and they are as follows: The parties: The conflict may involve two or more parties. The parties to the conflict and the reasons for the conflict are clearly identified. This becomes a difficult task if there are many sub-groups involved each of which has its own agenda. The issues: The issues of the conflict are any of the following: Disputed topics or subjects Different perceptions of the topics The interests of the parties involved The acceptability of the proposed resolutions The hierarchy and priority of contentious issues The dynamics: The following factors are considered to understand the dynamics of the Conflict: The factors that reveal the conflict The factors that fuel the conflict The changes in the situation of the conflict The length of time of the conflict The attitudes and changes in the attitude of the people involved The position and influence of vested interests The possibility of resolution of the conflicting interests The power and influence of key players The accuracy of the predictability of outcomes and developments The range of outcomes The hurdles which block progress Management of the conflict: Conflicts are dealt with in the following ways: Institutionalise the conflict: Have set rules, precedents, and procedures to resolve conflicts. Contain and control the conflict: Isolate and tackle severe conflicts. Remove the causes of conflict: This can be done by improving channels of communication and using conciliation and arbitration techniques. 3. Early Warnings of Conflict Now that you are familiar with the factors in a conflict, you must know that it is important to identify conflicts in its early stages. Every manager and employee needs to be able to identify the signs of conflicts and respond to them as soon as they occur. All staff members have to raise issues of concern immediately. This contributes to the well-being of the organisation. The early signs of the presence of conflict are as follows: Declining performance: Declining performance trends of a department indicate the presence of conflict. Declining morale: Conflicts lower morale and increase turnover, absence and rate of accidents.

To identify a conflict, you have to know the different types of conflicts that can arise in an organisation. 4. Identifying the types of Organisational Conflict The different forms of conflict in an organisation are as follows: Personal conflict: This conflict arises due to differences in the perceptions and personality of individuals. Professional counsellors may be required to resolve such conflicts but managers try to understand and resolve them. Role conflict: People have formally defined roles in an organisation. Apart from this they have roles outside the organisation as a parent, child, spouse all of which affect their organisational role. Conflicts arise when these different roles interfere with each other. Role conflicts also arise when an individual gets inconsistent demands. For example, an employer demands an employee to produce superior quality work while the team makes demands to increase the production. Such role conflicts sometimes motivate the employee to perform better, and sometimes it causes frustration and reduces efficiency. Inter-Group conflicts: Conflicts arise in groups when there is a scarcity of resources or a struggle for power and status within the group. Inter-group conflicts also arise when rewards and recognitions are not properly awarded. The two kinds of intergroup conflict are the following: Horizontal strain: This occurs when different functions like sales and production compete with each other. Vertical strain: This occurs when there is competition between different hierarchical levels like foremen and shop workers. 5. Conflict resolution: Once you know the aspects and types of conflicts, you have to understand the steps that can be taken to resolve the dispute. Conflicts are resolved by adopting the following methods: Counselling: If the organisations cannot have professional counsellors on their staff, then managers can be trained to counsel employees. Just by employing non-directive counselling (Listening and understanding), managers can help their frustrated subordinates. Avoidance: One strategy that is employed is not paying attention to the parties involved in the conflict. Another strategy used is isolating partially or fully the parties involved in the conflict in order to limit interaction. Smoothing: This technique tries to achieve harmony between the parties involved in the conflict. Dominance or Power Intervention: A higher authority tries to impose a solution to resolve the conflicts of the subordinates. Compromise: Conflicts can be resolved by meeting at least part of the demands of the parties involved in the conflict. Confrontation: The parties involved in the conflict are brought face to face and a solution is arrived by having frank discussions