MBA606_Human Resource Management(Draft 3)-converted-converted

a. to create an ethical workplace b. to evaluate the ethical components of the proposed actions of the employees c. to improve the public image of the company d. to enhance the profits of the business continuously 4. Which of the following is not a core principle of the Society for Human Resource Management’s Code of Ethics? a. professional responsibility b. fairness and justice c. professional development d. None of the above 5. Which of the following factors shapes the ethical behaviour of the members of an organization? a. The supervisor’s behaviour b. organizational culture c. code of ethics d. All of the above Answers: 1-a, 2-a, 3-d, 4-d, 5-d REFERENCES • Duari, Pravin. (2010). Human Resource Management. New York: Pearson Education. • Dessler, G. (2013). Human Resource Management. Delhi: Prentice-Hall. • Flippo, Edwin B. (1966). Personnel/Human Resource Management. New Delhi: Tata McGraw Hills. • Haldar, U.K. And Sarkar. (2012). Human Resource Management. New Delhi: Oxford & IBH. • https://shodhganga.inflibnet.ac.in/bitstream/10603/75693/13/13_chapter%205.pdf • https://www.yourarticlelibrary.com • https://www.managementstudyguide.com 147 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT –10 INDUSTRIAL DISPUTES Structure Learning Objectives Introduction Causes Types Outcomes of Industrial Disputes Trade Unions: Objectives & Functions. Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to: • Discuss the causes of industrial disputes • Outline types of disputes • State outcomes of industrial disputes • Explain the objectives & functions of trade union INTRODUCTION In common parlance, dispute means difference or disagreement of strife over some issues be-tween the parties. As regards industrial dispute, since its settlement proceeds as per the legal provi-sions contained in the ‘Industrial Disputes’ Act, 1947, hence it seems pertinent to study the concept of industrial disputes from a legalistic angle. According to Section 2 (k) of the Industrial Disputes Act, 1947, the term ‘industrial dispute’ means “any dispute or difference between employers and employers or between employers and workmen, or between workmen and workmen, which is connected with the employment or non- employment or the terms of employment and conditions of employment of any person”. The above definition is too broad and includes differences even between groups of workmen and employers engaged in an industry. However, in practice, industrial disputes mainly relate to the difference between the workmen and the employers. Dispute differs from discipline and grievance. While discipline and grievance focus on individuals, dispute focuses on collectively of individuals. In other words, the test of industrial dispute is that the interest of all or majority of workmen is involved in it. 148 CU IDOL SELF LEARNING MATERIAL (SLM)

Meaning of Industrial Disputes: An Industrial Dispute means any dispute or difference between employers and employers or employers and workmen or between workmen and workmen which is connected with employ-ment or non-employment or terms of employment or conditions of labour, of any person. Every human being (say a worker) has certain needs, e.g., economic needs, social needs and needs for security. When these needs do not get satisfied, there arises a conflict between labour andcapital. A conflict means a struggle or clash between the interests of the employer and the workers. For example, in order to compete in the market, the employer would like to reduce the price of his product and for doing so he will tend to reduce the wages of the workers; the workers would not agree to it and the result will be an industrial conflict between the employer and the workers. When an industrial conflict (which otherwise is general in nature) acquires a concrete and specific display or revelation, it becomes an Industrial Dispute. A conflict takes the shape of Industrial Dispute as soon as the issues of controversy are submitted to the employer for negotiations. An industrial dispute may be looked upon as a controversy or disagreement between employer (or management) and the workmen on issues such as: i. Wages and other benefits, ii. Work hours and working conditions, etc. Industrial disputes cause losses to, workers, management and nation as a whole. (i) Workers lose their wages. (ii) Management loses its profit, (iii) Public suffers due to shortage of goods in the market. (iv) Nation suffers due to loss of production. CAUSES OF INDUSTRIAL DISPUTES Even the smallest of the reasons can contribute to the raising of conflicts in an organizational setup if it impacts the respondent to a great extent. Let us have an in-depth analysis of each of these causes by reaching out to the roots of industrial disputes: (i) Psychological Causes: • Difficulty in adjusting with each other (i.e., employer and worker). • Clash of personalities. • Authoritarian Leadership (administration). • Demand for self-respect and recognition by workers. 149 CU IDOL SELF LEARNING MATERIAL (SLM)

• Strict discipline. (ii) Institutional Causes: • Non recognition of the labour union by the management. • Matters of collective bargaining. • Unfair conditions and practices. • Pressing workers, not to become members of union, etc. (iii) Economic Causes: (a) Terms and Conditions of Employment: • More hours of work. • Working in night shifts. • Promotion, lay off, retrenchment, dismissal, etc. (b) Working Conditions: • Environmental conditions such as too hot, too cold, noisy, dirty, messy, etc. • Improper plant and workstation layout. • Old and trouble giving machines. • Frequent changes in products, etc. (c) Wages and Other Benefits: • Inadequate wages. • Undesired deductions from wages. • Poor fringe benefits. • No bonus or other incentives, etc. (iv) Denial of Legal and Other Rights of Workers: • Not proceeding as per labour laws and regulations, standing orders etc. • Violation of already made mutual agreements (i.e., between employer and workers). TYPES OF DISPUTES Industrial disputes are a part of organizational life and arise out of various economic or non- economic causes. The economic causes relate to compensation such as wages, bonus, allowances, conditions of work, working hours, leave, holidays without pay, unjust layoffs, and retrenchments. The non-economic factors include victimization of workers, ill-treatment by staff members, sympathetic strikes, political factors, indiscipline, etc. 150 CU IDOL SELF LEARNING MATERIAL (SLM)

Trade unions and other forums generally bargain for higher wages and allow-ances to meet the rising cost of living and to increase their standards of living. Differences of opinion in these issues lead to disputes. Retrenchment and layoffs also continue to be important factors that give rise to industrial disputes. Indiscipline, unruliness, disorderliness, disruptive behaviour, aggres-sion, hostility, violence, etc., jeopardize the normal working in any type of organization. Industrial disputes also revolve around the number of leaves and working hours though they have not been so important causes. Industrial disputes can be broadly categorized in the following ways: Type 1. Strikes: A strike is a very powerful weapon used by trade unions and other labour associations to get their demands accepted. It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted. When workers collectively cease to work in a particular industry, they are said to be on strike. According to Industrial Disputes Act 1947, a strike is “a cessation of work by a body of persons employed in an industry acting in combination; or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment; or a refusal under a common understanding of any number of such persons to continue to work or to accept employment”. This definition throws light on a few aspects of a strike. Firstly, a strike is a referred to as stoppage of work by a group of workers employed in a particular industry. Secondly, it also includes the refusal of a number of employees to continue work under their employer. In a strike, a group of workers agree to stop working to protest against something they think is unfair where they work. Labours withhold their services in order to pressurize their employment or government to meet their demands. Demands made by strikers can range from asking for higher wages or better benefits to seeking changes in the workplace environment. Strikes sometimes occur so that employers listen more carefully to the workers and address their problems. Causes of Strikes: 151 Strikes can occur because of the following reasons: 1. Dissatisfaction with company policy 2. Salary and incentive problems 3. Increment not up to the mark 4. Wrongful discharge or dismissal of workmen 5. Withdrawal of any concession or privilege 6. Hours of work and rest intervals 7. Leaves with wages and holidays CU IDOL SELF LEARNING MATERIAL (SLM)

8. Bonus, profit sharing, provident fund and gratuity 9. Retrenchment of workmen and closure of establishment 10. Dispute connected with minimum wages Types of Strikes: i. Economic Strike: Under this type of strike, labours stop their work to enforce their economic demands such as wages and bonus. In these kinds of strikes, workers ask for increase in wages, allowances like traveling allowance, house rent allowance, dearness allowance, bonus and other facilities such as increase in privilege leave and casual leave. ii. Sympathetic Strike: When workers of one unit or industry go on strike in sympathy with workers of another unit or industry who are already on strike, it is called a sympathetic strike. The members of other unions involve themselves in a strike to support or express their sympathy with the members of unions who are on strike in other undertakings. The workers of sugar industry may go on strike in sympathy with their fellow workers of the textile industry who may already be on strike. iii. General Strike: It means a strike by members of all or most of the unions in a region or an industry. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers. These strikes are usually intended to create political pressure on the ruling government, rather than on any one employer. It may also be an extension of the sympathetic strike to express generalized protest by the workers. iv. Sit Down Strike: In this case, workers do not absent themselves from their place of work when they are on strike. They keep control over production facilities. But do not work. Such a strike is also known as ‘pen down’ or ‘tool down’ strike. Workers show up to their place of employment, but they refuse to work. They also refuse to leave, which makes it very difficult for employer to defy the union and take the workers’ places. In June 1998, all the Municipal Corporation employees in Punjab observed a pen down strike to protest against the non-acceptance of their demands by the state government. v. Slow Down Strike: Employees remain on their jobs under this type of strike. They do not stop work, but restrict the rate of output in an organized manner. They adopt go-slow tactics to put pressure on the employers. vi. Sick-Out (Or Sick-In): 152 CU IDOL SELF LEARNING MATERIAL (SLM)

In this strike, all or a significant number of union members call in sick on the same day. They don’t break any rules, because they just use their sick leave that was allotted to them on the same day. However, the sudden loss of so many employees all on one day can show the employer just what it would be like if they really went on strike. vii. Wild Cat Strikes: These strikes are conducted by workers or employees without the authority and consent of unions. In 2004, a significant number of advocated went on wild cat strike at the City Civil Court premises in Bangalore. They were protesting against some remarks allegedly made against them by an Assistant Commissioner. Type 2. Lockouts: A lockout is a work stoppage in which an employer prevents employees from working. It is declared by employers to put pressure on their workers. This is different from a strike, in which employees refuse to work. Thus, a lockout is employers’ weapon while a strike is raised on part of employees. According to Industrial Disputes Act 1947, lockout means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him. A lockout may happen for several reasons. When only part of a trade union votes to strike, the purpose of a lockout is to put pressure on a union by reducing the number of members who are able to work. For example, if a group of the workers strike so that the work of the rest of the workers becomes impossible or less productive, the employer may declare a lockout until the workers end the strike. Another case in which an employer may impose a lockout is to avoid slowdowns or intermittent work-stoppages. Occupation of factories has been the traditional method of response to lockouts by the workers’ movement. Type 3. Picketing: When workers are dissuaded from work by stationing certain men at the factory gates, such a step is known as picketing. If picketing does not involve any violence, it is perfectly legal. Pickets are workers who are on strike that stand at the entrance to their workplace. It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. The purpose of picketing is: 153 • To stop or persuade workers not to go to work CU IDOL SELF LEARNING MATERIAL (SLM)

• To tell the public about the strike • To persuade workers to take their union’s side Type 4. Gherao: Gherao in Hindi means to surround. It denotes a collective action initiated by a group of workers under which members of the management are prohibited from leaving the industrial establishment premises by workers who block the exit gates by forming human barricades. The workers may gherao the members of the management by blocking their exits and forcing them to stay inside their cabins. The main object of gherao is to inflict physical and mental torture to the person being gheraoed and hence this weapon disturbs the industrial peace to a great extent. Prohibition of Strikes and Lockouts: Employees are prohibited from striking according to the section 22 of Industrial Disputes Act, 1947. Employees, who are working in a public utility service, cannot go on a strike without giving a notice of strike within the six weeks before striking. They cannot go on strike either within fourteen days of providing the strike notice or before the expiry of the date of strike specified in any such notice. The same rule applies to the employers. Employers who are carrying on a public utility service cannot lockout any of their employees without giving them a prior notice within six weeks before the lockout or within the fourteen days of giving such a notice. Moreover, the notice of strike or lockout is to be given in a prescribed manner showing the number of persons involved in the strike/lockout. A notice should be issued on the day on which the lockout is declared just to intimate the appropriate authorities about the lockout. The employer is supposed to report the number of notices of strikes received by him to the appropriate government or the authority prescribed by the government within the five days of receiving such notices. Illegal Strikes and Lockouts: A strike or a lockout is illegal if it is declared in noncompliance with the section 22 of Industrial Disputes Act 1947, that is, if the notice period is not served or if the strike is held within the fourteen days of issuing the notice of strike. If a strike or lockout has already taken place and is being referred to a Board, the continuance of such a strike or lockout is not illegal provided it is in compliance with the provisions of Act. Moreover, a lockout declared in consequence of an illegal strike or a strike declared in consequence of an illegal lockout shall not be deemed to be illegal. Penalty for Illegal Strikes and Lockouts: A workman who is involved in an illegal strike can be penalized with imprisonment for a term extendable to a month or with a fine or fifty rupees or both. In similar way, an employer who initiates and continues a lockout is punishable with imprisonment extendable to a month or with a fine of one thousand rupees or both. 154 CU IDOL SELF LEARNING MATERIAL (SLM)

According to Section 25 of Industrial Disputes Act 1947, no person should provide any sort of financial aid to any illegal strike or lockout. Any person who knowingly provides such a help in support of any illegal strike or lockout is punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both. OUTCOMES OF INDUSTRIAL DISPUTES The consequences of an industrial dispute are hazardous to the employer, employees, organization, society and the economy. However, it is taken as a useful tool by the workers, to raise their voice and put up their demands in front of the management or employers. It empowers the labours and protects their rights of speech in the organization. Following are some of the essential ways in which the industrial disputes takes shape in the organization and are carried out by the employees as well as the employer sometimes: Fig.10.1Consequences of Industrial Disputes Strikes It is a way through which a group of workmen exercise pressure on the management by stopping the work and protesting against the employers to get their demands fulfilled. Following are the different types of strikes: Primary Strikes: The strikes which are directly projected against the employers are called as Mona primary strikes. Some of the most common primary strikes are as follows: Table is in color but printing will be in 155 blacknwhite.Please remove the colors so that it does not form shadows around the words when printed CU IDOL SELF LEARNING MATERIAL (SLM)

Gherao: Gherao refers to physically encircling the managers by the workmen to create a restricted area where no one can move in or out. The targeted managers are humiliated through; abuses also they are restricted move in or out. Picketing: Picketing is the process of putting up signboards, play cards and banners by the workmen to display their protest or dispute in front of the public. To involve maximum workers in the strike, some union members are made to stand at the factory gate to influence others too. Boycott: As the name suggests, boycott refers to interrupting business operations. It requests the other labourers to temporarily pull back their co-operation with the management and contribute to the strike. Stay Away Strike: In a stay-away strike, the workmen organize a protest in the form of demonstrations, marches, rallies, apart from the workplace. Pen Down Strike: It is also known as the sit-down strike or tools down strike. Though the workmen come to the workplace daily and also avails the work facilities, they sit idle and stop working. Token Strike: A token strike is a short form of protest where the workmen stop their work for a definite period. It is usually for as short as 24 hours, to hamper a day’s production or so and get their demands fulfilled by the management. Lightning Strike: The lightning strike is that form of strikes where the workmen call off the work immediately without giving any prior information or warning to the management. It is also termed as a catcall strike. Go Slow Strike: This is another harmful way of protesting against the management where the workmen secretly plan to decrease their work speed so that the production is hampered. However, in front of the management, they pretend to be highly committed towards their job. Work to Rule: In this type of strike, the employees strictly follow their job rules or contract and stops performing any additional task, other than what all is mentioned in their agreement. Hunger Strike: One of the most common forms of a strike is the hunger strike. The workmen go on fasting for an indefinite period and sit nearby the workplace or the employer’s house to project their demands. Secondary Strikes: The other name for the secondary strike is the sympathy strike. In this, the force is applied against the third person having sound trade relations with the organization to indirectly 156 CU IDOL SELF LEARNING MATERIAL (SLM)

incur a loss to the employer and the business. The third person does not have any other role to play in such a strike. Other Strikes: There are undoubtedly other forms of strike too, which takes place on a vast level involving and affecting a large number of people. These are as follows: General Strike: The strikes which are conducted on a mass level, i.e., in the whole country or state or city instead of just a single organization for fulfilment of a demand unanimously like job permanency or an increase in pay, etc. Political Strike: Any law or act proposed by the government for making changes to the working terms or conditions when unaccepted by the workers is protested through political strike on a massive level. Particular Strike: The protest against a specific issue or person within a city, state or country and take up a colossal form is termed as a particular strike. Bandhs: Bandh is adopted in countries like Nepal and India where a specific community or a political party calls for a general strike across the city or state or country. It is a form of civil disobedience and sometimes become violent, even involving stone attacks or arson attacks at times. Lockouts This form of an industrial dispute is raised by the employers to impose specific terms and conditions on the workers. It is very different from layoff, retrenchment, termination or prohibition of employees. In lockouts, the employer temporarily closes down the workplace or stops the work or takes action like suspending the workers to force them to follow the new terms and conditions. TRADE UNIONS: OBJECTIVES & FUNCTIONS. A trade union is an association of workers formed with the object of improving the conditions of workers. It is formed for protecting the interests of workers. Workers have little bargaining capacity when they are unorganized. In fact, trade union movement began against the exploitation of workers by certain managements under the capitalist system. As per Sec. 2 (6) Trade Unions Act, 1926: A trade union is a combination of persons. Whether temporary or permanent, primarily for the purpose of regulating the relations between workers and employers or between workers for imposing restrictive conditions on the conduct of any trade or business and includes the federations of two or more trade unions. 157 CU IDOL SELF LEARNING MATERIAL (SLM)

Objectives of Trade Union: The following are the objectives of trade union: • To improve the economic lot of workers by securing them better wages. • To secure for workers better working conditions. • To secure bonus for the workers from the profits of the enterprise/organization. • To ensure stable employment for workers and resist the schemes of management which reduce employment opportunities. • To provide legal assistance to workers in connection with disputes regarding work and payment of wages. • To protect the jobs of labour against retrenchment and layoff etc. • To ensure that workers get as per rules provident fund, pension and other benefits. • To secure for the workers better safety and health welfare schemes. • To secure workers participation in management. • To inculcate discipline, self-respect and dignity among workers. • To ensure opportunities for promotion and training. • To secure organizational efficiency and high productivity. • To generate a committed industrial work force for improving productivity of the system. Functions of Trade Unions: • Collective bargaining with the management for securing better work environment for the workers/ employees. • Providing security to the workers and keeping check over the hiring and firing of workers. • Helping the management in redressal of grievances of workers at appropriate level. • If any dispute/matter remains unsettled referring the matter for arbitration. • To negotiate with management certain matters like hours of work, fringe benefits, wages and medical facilities and other welfare schemes. • To develop cooperation with employers. • To arouse public opinion in favour of labour/workers. SUMMARY • Industrial disputes are conflicts, disorder or unrest arising between workers and employers on any ground. Such disputes finally result in strikes, lockouts and mass refusal of employees to work in the organization until the dispute is resolved. So, it can be concluded that Industrial Disputes harm both parties’ employees and employers and are always against the interest of both employees and the employers. • Industrial disputes arise due to several causes relating to recognition, retrenchment, employment conditions, indiscipline, wages and allowances, bonus, ill-treatment, etc 158 CU IDOL SELF LEARNING MATERIAL (SLM)

• The common consequences of industrial disputes are loss of production, income, and employ- ment and increase in inflation and cost of living. Alternatively speaking, industrial disputes injure economic welfare of the nation broadly in two ways. • Firstly, work-stoppages impoverish the workers actually involved in the disputes and, thus, lessens, their demand for the goods manufactured by other industries. • Secondly, if the industry under work-stoppage manufactures items that are used in the conduct of other industries, it lessens the supply of raw materials for their production. • A Trade Union is an organisation of workers, acting collectively, who seek to protect and promote their mutual interests through collective bargaining. • A trade union is a formal association of workers, acting collectively, who seek to protect and promote their mutual interests through collective action. The main objective of any trade union is to protect and promote the interests of its members. Unions perform certain social, political and fraternal functions as well. Industrial conflicts constitute militant and organised protests against existing terms and conditions of employment. They occur in several forms such as strikes, lock-outs, gheraos, picketing, boycott, etc. KEY WORDS/ABBREVIATIONS • Complaint: A spoken or written dissatisfaction brought to the attention of the supervisor or the shop steward • Dissatisfaction: Anything disturbs an employee, whether or not the unrest is expressed in words. • Grievance: A formal complaint or allegation by an employee or group of employees made to unfair treatment or violation of a union contract. • Grievance procedure: The process and guidelines to be followed by employees, management or the union when resolving differences or conflicts. • International Labor Organization (ILO): A specialized agency of the United Nations that deals with labor issues. • International representative: An officer of an international union who has been appointed by the union’s executive board to serve as a liaison between the national or international level of the union and locals. • Industrial Conflict: Organized protest against prevailing industrial conditions raised by a group or a class of workers. • Industrial Dispute: Any dispute or difference between employers and employers, or between employers and workmen or between workmen and workmen which is connected with the employment or non-employment or the terms of employment or with the conditions of labour of any person. 159 CU IDOL SELF LEARNING MATERIAL (SLM)

• Industrial Relations: It generally refers to the collective relations between employers and employees as a group. • Lock-out: Closing down of an undertaking or the suspension of work or the refusal of an employer to continue to employ any number of persons employed by him. • Negotiation: An interpersonal process used by two or more parties whereby both or all modify their demands to reach an agreement. • Strike: A collective stoppage of work by a group of workers. • Trade Union: \"A voluntary organization of workers formed to promote and protect their interests by collective action\" (V.V. Giri). LEARNING ACTIVITY 1. Is union influence on the decline? If yes, illustrate your arguments with examples from the corporate world. ………………………………………………………………………………………………………. ………………………………………………………………………………………………………. 2. Do you think the right of the workers to strike is a fundamental right - as guaranteed in the Constitution of India? Why? ………………………………………………………………………………………………………… ……………………………………………………………………………………………………........ UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 1. What are industrial disputes? 2. Describe causes of disputes with relevant examples. 3. Identify & discuss consequences of industrial disputes with examples. 4. List down the objectives and functions of Trade unions? 5. List down different types of strikes with relevant examples. 6. Examine the current state of labour-management relations in India. Whatmeasures would you suggest to make these more cooperative? 7. Do you think that trade unions in India have served the objectives for which theywere formed? Justify your answer. B. Multiple Choice Questions 1 Who are the actors of Industrial Relations? a. Workers and their organisations b. Employers and their organisations c. Government and the role of the State 160 CU IDOL SELF LEARNING MATERIAL (SLM)

d. all of the above 2 Which is the machinery for settlement of Industrial Disputes? a. Industrial Tribunal b. National Tribunal c. Labour court d. all of the above 3 First National Commission on Labour (NCL) submitted its report in the year: a. 1969 b. 1958 c. 1999 d. 1947 4 Second National Commission on Labour (NCL) submitted its report in which year andunder whose chairmanship? a. 1999, Ravindra Varma b. 2000, Ravindra Varma c. 1998, B.P. Wadia d. None of the above Answers: 1-d, 2-d, 3-a, 4-a REFERENCES • Duari, Pravin. (2010). Human Resource Management. New York: Pearson Education. • Dessler, G. (2013). Human Resource Management. Delhi: Prentice-Hall. • Flippo, Edwin B. (1966). Personnel/Human Resource Management. New Delhi: Tata McGraw Hills. • Haldar, U.K. And Sarkar. (2012). Human Resource Management. New Delhi: Oxford & IBH. • Aswathapa, K. (2008) 5th ed. Human Resource Management, Tata McGraw Hill. • Dipak Kumar Bhattacharyya, Human Resource Management, Excel Books. • Ivancevich, JM (2008), Human Resource Management, Tata McGraw Hill. • Madhurima Lall and Sakina Qasim Zaidi, Human Resource Management, Excel Books. • PL Rao, Comprehensive HRM, Excel Books. • www.nirb.gov/index.html • www.fmcs.gov 161 CU IDOL SELF LEARNING MATERIAL (SLM)

• www.adr.org • http://www.igc.org/igc/labornet 162 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT –11 MANAGING EMPLOYEE GRIEVANCES Structure Learning Objectives Introduction Characteristics Sources Techniques of Grievance Identification Grievance Procedure. Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to: • Identify the characteristics and sources of grievance • Explain techniques of grievance identification • Describe grievance procedure INTRODUCTION Despite the best of management practices in acting and communicating, conflicts between employees and the organisation will occur. Conflict per se is neither bad nor contrary to good organisation. Disagreements and dissatisfactions can be helpful in re-examining the basic assumptions and practices to the end that adjustments can be made to improve overall organizational effectiveness. The first step in the resolution of conflict is the discovery of the conflict and its exposure. Employers can devise and put in place a variety of upward channels of communication, and a properly constituted grievance procedure is one such valuable channel through which employees can bring their dissatisfaction to the notice of management. It is desirable that organisations should be proactive in designing and putting in place a formal grievance procedure, which allows employees to ventilate and seek redressal of work-related dissatisfaction. There is hardly any organisation where the employees do riot have grievances of one kind or another. The grievances may be real or imaginary, valid or invalid, genuine or false; yet in all cases, grievances produce unhappiness, discontent, indifference, low morale and frustration, which may adversely affect the employees' commitment, concentration, efficiency and Grievance Handling effectiveness. A large number of work stoppages, shop floor incidents, strikes, violent and Discipline and disorderly behaviour 163 CU IDOL SELF LEARNING MATERIAL (SLM)

patterns can be attributed to the faulty handling of grievances by managers or, in certain situations, to their refusal to recognize the very existence of grievances. The costs of unattended or faultily handled grievances can be very high in terms of time lost, poor performance, damage to the plant and machinery arising out of neglect or sabotage, employee resentment, poor customer service, resistance to change, union-management conflict and so on. A well-defined, time-bound, in-house, grievance redressal machinery would go a long way in maintaining industrial peace and harmony apart from heightening employee commitment and morale. Effective grievance administration helps management to shift from purely preventive and maintenance needs to the growth and developmental needs of employees such as improving communication, job redesign, integration with corporate goals, fostering democratic and participative culture. CHARACTERISTICS A grievance may have the following characteristics: i. Factual: The employer-employee relationship depends upon the job contract in any organization. This contract indicates the norms defining the limits within which the employee expects the organization to fulfill his aspirations, needs or expectations. When these legitimate needs of expectations or aspirations are not fulfilled, the employee will be dissatisfied with the job. Such dissatisfaction is called factual grievance. For instance, when an employee is not given promotion which is due to him or when work conditions are unsafe, grievances of employee relating to these issues are based on facts. In other words, these grievances reflect the drawbacks in the implementation of the organizational policies. ii. Imaginary: When the job contract is not clear-cut and does not indicate the norms defining the limits within which the employee expects the organization fulfill his needs or aspirations, the employee develops such needs which the organization is not obliged to meet. Here, grievances are not based on facts. Even then the employee feels aggrieved. Normally, the organization does not feel any kind of responsibility for such grievances and their redressal, because they are based not only on wrong perceptions of the employee but also on wrong information. However, such grievances can have far-reaching consequences on the organization because the employees are likely to develop an altogether negative attitude towards the organization which decreases their effectiveness and involvement in work. iii. Disguised: In general organizations consider the basic requirements of their employees. Psychological needs of the employees such as need for recognition, affection, power, achievement etc., are normally unattended and ignored. 164 CU IDOL SELF LEARNING MATERIAL (SLM)

For instance, an employee complaining very strongly about the working conditions in the office may in turn be seeking some recognition and appreciation from his or her colleagues. Hence, disguised grievances should also be considered since they do have far-reaching consequences in case, they are unattended and ignored. iv. Discontent The discontent should have been caused by something connected with the organization concerned. The discontent may be valid or invalid, genuine or ingenuine, real or imaginary, true or untrue, rational or ridiculous, in writing or not. The discontent may be expressed or implied. SOURCES Various sources of grievance may be categorized under three heads: (i) Management policies, (ii) Working conditions and (iii) Personal factors 1. Grievance resulting from management policies include: • Wage rates • Leave policy • Overtime • Lack of career planning • Role conflicts • Lack of regard for collective agreement • Disparity between skill of worker and job responsibility 2. Grievance resulting from working conditions include: • Poor safety and bad physical conditions • Unavailability of tools and proper machinery • Negative approach to discipline • Unrealistic targets 3. Grievance resulting from interpersonal factors include: • Poor relationships with team members • Autocratic leadership style of superiors • Poor relations with seniors • Conflicts with peers and colleagues 165 CU IDOL SELF LEARNING MATERIAL (SLM)

It is necessary to distinguish a complaint from grievance. A complaint is an indication of employee dissatisfaction that has not been submitted in written. On the other hand, a grievance is a complaint that has been put in writing and made formal. Grievances are symptoms of conflicts in industry. Therefore, management should be concerned with both complaints and grievances, because both may be important indicators of potential problems within the workforce. Without a grievance procedure, management may be unable to respond to employee concerns since managers are unaware of them. Therefore, a formal grievance procedure is a valuable communication tool for the organization. TECHNIQUES OF GRIEVANCE IDENTIFICATION Grievance should be redressed by adopting proactive approach rather than reactive approach. The proactive approach addresses the factors responsible for emergence of grievance. In other words, management does not allow grievance causing situation to emerge. But in reactive approach, a particular grievance gets redressed but the underlying cause continues to exist. Unless it is rooted out lock, stock and barrel, there cannot be any permanent solution. The following are the proactive methods of addressing grievances: 1. Exit Interview Information collected from the exiting employee on various aspects of working conditions forcing him to quit is supposed to be more credible than those expressed by the existing workers. 2. Gripe Box System: Employees may be encouraged to drop anonymous complaints as they may fear that their identity may invite victimization especially when they complain against the management. This method is more appropriate when there is lack of trust and understanding between employees and their supervisors. 3. Opinion Survey: Various surveys line morale survey, attitude survey, job satisfaction survey, grievance survey or comprehensive survey comprising all the above aspects, reveal vital inputs about the negative aspects of functioning of the organization. Since the survey is conducted by persons other than the supervisor and the respondents identify is not insisted upon, information collected is likely to be reliable. 4. Meetings: Group meeting, periodical interviews, collective bargaining sessions, informal get-togethers may be used to collect information about grievances. 166 CU IDOL SELF LEARNING MATERIAL (SLM)

5. Open-Door Policy: Under this policy any employee can lodge complaint or file his grievance with the manager designated for this purpose. The very objective of this policy is to encourage upward communication. GRIEVANCE PROCEDURE As already discussed, there are valid reasons to have the grievances processed through a machinery or a procedure. Objectives of a Grievance Handling Procedure Jackson (2000) lays down the objectives of a grievance handling procedure as follows: • To enable the employee to air his/her grievance. • To clarify the nature of the grievance. • To investigate the reasons for dissatisfaction. • To obtain, where possible, a speedy resolution to the problem. • To take appropriate actions and ensure that promises are kept. • To inform the employee of his or her right to take the grievance to the next stage of the procedure, in the event of an unsuccessful resolution. The Benefits of a Grievance Handling Procedure According to Jackson (2000), further benefits that will accrue to both the employer and employees are as follows: • It encourages employees to raise concerns without fear of reprisal. • It provides a fair and speedy means of dealing with complaints. • It prevents minor disagreements developing into more serious disputes. • It saves employers time and money as solutions are found for workplace problems. It helpsto build an organizational climate based on openness and trust. Processing of Grievance The details of a grievance procedure/machinery may vary from organization to organization. Here, a four-phase model (Figure 1) is suggested. The first and the last stages have universal relevance, irrespective of the differences in the procedures at the intermediate stages. The four stages of the machinery are briefly discussed here: The level at which grievance occurs: The best opportunity to redress a grievance is to resolve it at the level at which it occurs. A worker’s grievance should be resolved by his immediate boss, the first line supervisor. The higher the document rises through the hierarchy, the more difficult it is to resolve. Bypassing the supervisor would erode his authority. When the process moves to a higher stage, the aggrieved employee and the supervisor concerned may shift their focus to save face by 167 CU IDOL SELF LEARNING MATERIAL (SLM)

proving the other wrong The substantive aspect of any of the grievances may thus be relegated and dysfunctional aspects come to the fore thus making it more difficult to settle the issue. In a unionized concern, the first stage of the procedure usually involves three people: the aggrieved employee, his immediate boss and the union representative in the shop/ department. It is possible to involve the union in laying down the framework of the grievance procedure and thereafter restrain union involvement in the actual process, at least in the first two stages. The choice depends on the top management attitude and orientation towards the dynamics of union-management relations. Supervisory role needs to be strengthened, with appropriate training in problem- solving skills, grievance handling and counselling so that he can do much in reducing the number of grievances that get passed to higher stages in the machinery. Stages Participants 4 Conciliation/arbitrati on/adjudication Top Union president/ 3 Management General Secretary 2 Middle Union Office- Management bearers Supervisor Union Shop department 1 representative Aggrieved Employee Fig 11.1 Grievance Procedure (Adapted from: C. Pettifer, Effective Grievance Administration, California Management Review, 12(i), Winter 1970, p.18) 168 CU IDOL SELF LEARNING MATERIAL (SLM)

Unrealistic policies and expectations and lack of commitment for equity and fair play can cause problems in handling grievances at the lower level. Inadequate delegation of authority may also inhabit a supervisor’s effectiveness in handling grievances at this level. Intermediate Stage: If the dispute is not redressed at the supervisor’s level, it will usually be referred to the head of the concerned department. It is important that line management assume prime responsibility for the settlement of a grievance. Any direct involvement by personnel department may upset balance in line-staff relations. At the intermediate level, grievance can be settled with or without union involvement. Excessive reliance on supervisor at this stage can jeopardize the interests of the employee and affect the credibility of the procedure. Organization Level: If a grievance is not settled at the intermediate level also, it will be referred to the top management. Usually, a person of a level not less than General Manager designated for the purpose will directly handle the issue. By now, the grievance may acquire some political importance and the top leadership of the union may also step in formally, if the procedure provides for it and informally, if the procedure prohibits it. At this level it is very difficult to reconcile the divergent interests. Third Party Mediation: If the grievance has not been settled bi-laterally within the organization, it goes to a third party for mediation. It could be conciliation, arbitration or adjudication or the matter may even be referred to a labor court. At this stage, the parties concerned lose control over the way the grievance is settled. In case of mediation (conciliation or arbitration) the mediator has no authority to decide, but in case of labor court or an adjudicator, the decision will be binding on the parties, subject to statutory provisions for appeal to higher courts. Steps in Grievance Handling Procedure At any stage of the grievance machinery, the dispute must be handled by some members of the management. In grievance redressal, responsibility lies largely with the management. And, as already discussed, grievances should be settled promptly at the first stage itself. The following steps will provide a measure of guidance to the manager dealing with grievances. Acknowledge Dissatisfaction: Managerial/supervisory attitude to grievances is important. They should focus attention on grievances, not turn away from them. Ignorance is not bliss; it is the bane of industrial conflict. Condescending attitude on the part of supervisors and managers would aggravate the problem. Define the Problem: Instead of trying to deal with a vague feeling of discontent, the problem should be defined properly. Sometime the wrong complaint is given. By effective listening, one can make sure that a true complaint is voiced. Get the Facts: Facts should be separated from fiction. Though grievances result in hurt feelings, the effort should be to get the facts behind the feelings. There is need for a proper record of each grievance. 169 CU IDOL SELF LEARNING MATERIAL (SLM)

Analyze and Decide: Decisions on each of the grievances will have a precedent effect. While no time should be lost in dealing with them, it is no excuse to be slip-shod about it. Grievance settlements provide opportunities for managements to correct themselves, and thereby come closer to the employees. Horse-trading in grievance redressal due to union pressures may temporarily bring union leadership closer to the management, but it will surely alienate the workforce away from the management. Follow up: Decisions taken must be followed up earnestly. They should be promptly communicated to the employee concerned. If a decision is favorable to the employee, his immediate boss should have the privilege of communicating the same. Some of the common pitfalls that managements commit in grievance handling relate to (a) stopping the search for facts too soon; (b) expressing a management opinion before gathering full facts; (c) failing to maintain proper records; (d) arbitrary exercise of executive discretion; and (e) settling wrong grievances. Key Features of a Good Grievance Handling Procedure Torrington & Hall refer to four key features of a grievance handling procedure, which are discussed below. a) Fairness: Fairness is needed not only to be just but also to keep the procedure viable, if employees develop the belief that the procedure is only a sham, then its value will be lost, and other means sought to deal with the grievances. This also involves following the principles of natural justice, as in the case of a disciplinary procedure. b) Facilities for representation: Representation, e.g., by a shop steward, can be of help to the individual employee who lacks the confidence or experience to take on the management single- handedly. However, there is also the risk that the presence of the representative produces a defensive management attitude, affected by a number of other issues on which the manager and shop steward may be at loggerheads. c) Procedural steps: Steps should be limited to three. There is no value in having more just because there are more levels in the management hierarchy. This will only lengthen the time taken to deal with matter and will soon bring the procedure into disrepute. d) Promptness: Promptness is needed to avoid the bitterness and frustration that can come from delay. When an employee ‘goes into procedure,’ it is like pulling the communication cord in the train. The action is not taken lightly and it is in anticipation of a swift resolution. Furthermore, the manager whose decision is being questioned will have a difficult time until the matter is settled. Essential pre-requisites of a Grievance Handling Procedure Every organization should have a systematic grievance procedure in order to redress the grievances effectively. As explained above, unattended grievances may culminate in the form of violent conflicts later on. The grievance procedure, to be sound and effective should possess certain pre- requisites: 170 CU IDOL SELF LEARNING MATERIAL (SLM)

a) Conformity with statutory provisions: Due consideration must be given to the prevailing legislation while designing the grievance handling procedure. b) Unambiguity: Every aspect of the grievance handling procedure should be clear and unambiguous. All employees should know whom to approach first when they have a grievance, whether the complaint should be written or oral, the maximum time in which the redressal is assured, etc. The redressing official should also know the limits within which he can take the required action. c) Simplicity: The grievance handling procedure should be simple and short. If the procedure is complicated it may discourage employees and they may fail to make use of it in a proper manner. d) Promptness: The grievance of the employee should be promptly handled and necessary action must be taken immediately. This is good for both the employee and management, because if the wrong doer is punished late, it may affect the morale of other employees as well. e) Training: The supervisors and the union representatives should be properly trained in all aspects of grievance handling beforehand or else it will complicate the problem. f) Follow up: The Personnel Department should keep track of the effectiveness and the functioning of grievance handling procedure and make necessary changes to improve it from time to time. SUMMARY • A grievance refers to any form of discontent of dissatisfaction, arising out of employment, regarding certain organisational issues. • A grievance many be factual, imaginary or disguised. • If grievances are not identified and redressed properly, they may adversely affect the workers, managers and the organisation. • Grievances may be uncovered through observation, gripe boxes, an open-door policy, exit interviews and opinion surveys. • A grievance is a form of discontent or dissatisfaction. There are several reasons for this and grievance has several adverse effects on production, employer and individual employee. • There are several channels for discovering grievances. Machinery for grievance handling procedure has been described and a model grievance handling procedure has been provided at the end of the unit. KEY WORDS/ABBREVIATIONS • Dissatisfaction: Anything disturbs an employee, whether or not the unrest is expressed in words. 171 CU IDOL SELF LEARNING MATERIAL (SLM)

• Complaint: A spoken or written dissatisfaction brought to the attention of the supervisor or the shop steward • Grievance: A formal complaint or allegation by an employee or group of employees made to unfair treatment or violation of a union contract. • Grievance arbitration: Also referred to as grievance mediation, it is a proactive, voluntary process, which utilizes an arbitrator to assist and issue a binding resolution of grievances over the application or interpretation of a collective bargaining agreement. • Grievance procedure: The process and guidelines to be followed by employees, management or the union when resolving differences or conflicts. • International Labor Organization (ILO): A specialized agency of the United Nations that deals with labor issues. • International representative: An officer of an international union who has been appointed by the union’s executive board to serve as a liaison between the national or international level of the union and locals. • Standing Orders: Service rules and other agreed terms of employment certified by an authority as per the provisions of the Industrial Employment (Standing orders) Act, 1946. • Suspension or Layoff: A situation in which the employees are temporarily taken off work, being told there is no work for them but that management intends to recall them when work is available. (Applicable only to lay-off; in suspension, the employee is not allowed to work until departmental enquiry leads to further course of action, spanning a range of possibilities from reinstatement to dismissal.) • Termination Interview: The interview in which an employee is informed of the fact that he or she has been dismissed. LEARNING ACTIVITY 1. What are the major determinants of grievances? ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… 2. How can you manage grievances in organisational settings? ……………………………………………………………………………………………........……… ……………………………………………………………………………………………................ UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 1. What is a grievance? Outline its causes and symptoms? 2. Describe grievance handling procedure being followed in your organization? 172 CU IDOL SELF LEARNING MATERIAL (SLM)

3. State and explain essentials of good grievance procedure? 4. Why should organizations have a formal grievance procedure? Explain with examples. 5. Discuss the model grievance procedure that is applicable in India. What are the essential pre- requisites of a grievance procedure? 6. How would you try to uncover grievances? Justify C. Multiple Choice Questions 1. Most formal grievances raised in the workplace are related to – a. Low pay b. Harassment and bullying by managers c. Dislike of individual managers d. Employees attempting to resist being managed 2. Advantages of grievances handling procedure – a. Management can know employees’ feelings b. Employee gets grievances ventilated c. Keeps a check on supervisor’s attitude d. All of these 3 How to handle grievances? a. Grievance in writing / taking to employee directly for speaking truth / ensure confidentiality and handle the case within tie frame b. Treat each case as important, and obtain grievances in writing / examine company’s position / identify violations / do not hold back the remedy, if the company’s wrong + (a) above c. Get all the facts (relevant) about the grievance / examine the personnel record of the aggrieved worker / gather information from the union representative properly + (b)above d. Identify grievance / previous record of the worker / companies’ rules and prompt redressal of grievances, if genuine. 4. How the conflicts within employers and employees can be settled or prevented? a. Voluntary method b. Government Machinery c. Statutory Measures d. All of these 5. Why grievances should be redressed? 173 a. Affects the individual CU IDOL SELF LEARNING MATERIAL (SLM)

b. Affects the management c. Collective disputes conversion d. All of these Answers: 1-b, 2-d, 3-c, 4-d, 5-d. REFERENCES • Duari, Pravin. (2010). Human Resource Management. New York: Pearson Education. • Dessler, G. (2013). Human Resource Management. Delhi: Prentice-Hall. • Flippo, Edwin B. (1966). Personnel/Human Resource Management. New Delhi: Tata McGraw Hills. • Haldar, U.K. And Sarkar. (2012). Human Resource Management. New Delhi: Oxford & IBH. • H.J. Bernardin, Human Resource Management, Tata McGraw Hill, New Delhi, 2004. • Ivancevich, JM (2008), Human Resource Management, Tata McGraw Hill. • Rao P.S. (2008), Essentials of Human Resource Management and Industrial Relations, Text Cases and Games, Himalaya Publication. • https://shodhganga.inflibnet.ac.in/ • https://www.yourarticlelibrary.com • www.businessdictionary.com/definition/grievance.html • http://www.answers.com/topic/grievance • http://www.legal-explanations.com/definitions/grievance.htm 174 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT –12 CONTEMPORARY ISSUES IN HRM Structure Learning Objectives Introduction Green HR e-HR Employee Empowerment and Engagement Golden Handshake Glass Ceiling IHRM Talent Management International HR practices. Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to: • Study Green HR and e-HRM • Explain employee empowerment and engagement • Discuss Golden handshake and Glass ceiling • Describe IHRM and Talent Management concepts • Analyse International HR practices INTRODUCTION By transformation of economic environment, the information explosion, advances in technology and the intensely competitive global and domestic markets have created enormous pressure on organisation to change or perish. Against this challenging scenario, by choice or default a new era of human resource management practices and philosophy is emerging and assuming significance in modern organisations. This unit aims at discussing the contemporary issues of human resource management in detail and also, the International HRM Practices in India. 175 CU IDOL SELF LEARNING MATERIAL (SLM)

GREEN HR GHRM is a new concept and is becoming popular all over the world. It has got different meanings to different people. There is no comprehensive definition of GHRM. It refers to making efforts to improve energy efficiency or reduce the pollution produced by our home, business, and general living habits. The main purpose of going green is to reduce the potential negative impact that energy consumption and pollution can have on the environment. What is Green HRM? Ramachandran defines Green HRM as the integration of environmental management into human resources management. The term green HRM is mostly used to refer to the contribution of HRM policies and practices towards the broader corporate environmental agenda. It refers to using every employee to support sustainable practices and increase employee awareness and commitments on the issue of sustainability. Anjana Nath defines Green HR as environment- friendly HR initiatives leading to better efficiencies, less cost, and heightened employee engagement levels. Typical green activities are performed to travel requirements through video recruiting or the use of online and video interviews. It involves undertaking environment-friendly HR initiatives resulting in greater efficiencies, lower costs and better employee engagement and retention, which in turn, help organizations to reduce employee carbon footprints by the likes of electronic filing, car-sharing, job-sharing, teleconferencing, and virtual interviews, recycling, telecommuting, online training, energy-efficient office spaces, etc. Green HR initiatives help companies find alternative ways to cut costs without losing their top talent. Focus on Green HRM as a strategic initiative promotes sustainable business practices. Therefore, developing a new organizational culture through GHRM practices becomes a manager’s concern. Developing a green culture can affect employee behaviour and introduce certain values that build an internal culture. Green behaviour is assumed to be instrumental in the implementation of the green HRM culture and adopting formal environmental strategies. According to Mandip, the practice of green HR should be translated into the HR processes, such as recruitment, training, compensation, etc. From the definitions stated above, it can be concluded that Green HRM needs the participation of all the organization’s members to create and keep the organization green. Benefits of Green HRM Green HRM involves undertaking environment-friendly HR initiatives resulting in greater efficiency, lower costs and better employee engagement and retention, which in turn, help organizations to 176 CU IDOL SELF LEARNING MATERIAL (SLM)

reduce employee carbon footprints by electronic filing, car sharing, job sharing, teleconferencing, and virtual interviews, recycling, telecommuting, online recruitment and training, energy-efficient office spaces, etc. The Green Human Resource Management plays an important role in the industry to promote the environment-related issues. Organizations must formulate HR policies and practices, train people to increase awareness about the environment, and implement laws related to environmental protection. The Green HRM may also help the employers, manufacturers in building brand image and reputation. Organizations need to conduct an environmental audit, thus changing the organizational culture, thinking about waste management, pollution, and helping the society and its people, those are getting affected by pollution. It will also make employees and society members aware of the utilization of natural resources more economically and encourage eco-friendly products. Experts have identified the benefits of GHRM, which are mentioned below: • Helping companies to bring down costs without losing their talent. • Organizations have huge growth opportunities by being green and creating a new friendly environment, which helps in enormous operational savings by reducing their carbon footprint. • It helps in achieving higher employee job satisfaction and commitment, which leads to higher productivity and sustainability. • Create a culture of having concern for the wellbeing and health of fellow workers. • Improvement in the retention rate of the employee. • Improved public image. Any time a firm adds a green initiative to its workplace, it can use the event to generate positive public relations. Organizations can promote environmental contributions to the media through press releases to earn the attention of potential customers and possible new sales. • Promote employee morale. • Improvement in attracting better employees. Dolan’s (1997) study of USA MBA students found that most of the graduates would take a lower salary to work for environmentally responsible organizations. • Reduction in the environmental impact of the company. • Improved competitiveness and increased overall performance. • Reduction of utility costs significantly. Even small businesses can significantly reduce their utility costs by using technologies that are energy-efficient and less wasteful. • Rebates and Tax Benefits. Going green is easier with the assistance of governments, local municipalities, Water supply authority, and electric companies that offer tax incentives and rebates. • Increased business opportunities. Some government agencies, commercial businesses, and non-profit institutions mandate that only businesses that meet specific green standards can 177 CU IDOL SELF LEARNING MATERIAL (SLM)

bid on their contracts. Some also mandate that their purchasing departments only buy green products or use products and services sold by companies that meet certain green standards. • Reduction of environmental damage. Encouraging employees, through training and compensation, to find ways to reduce the use of environmentally damaging materials. Today, most educated and affluent consumers look for companies that adopt environmental standards. Organizations pursuing environment-friendly human resource policies are also immensely benefitted. This may help in arriving at greener products and green savings from waste elimination. The promotion of such values may also indirectly improve consumer satisfaction. Disadvantages of GHRM While environmentally friendly living is a positive ideal, there are several possible disadvantages of going green. Gregory Hamel has made a review of the disadvantages if an organization is going green. The major disadvantages are listed below; • Initial costs. • Inadequate savings. • Increased capital outlays. • Uneven competition. • Marginal impact. • Employee apathy and reluctance. Initial costs Perhaps the greatest disadvantage of going green is that it often requires a high initial cost. For example, installing a new roof or new insulation to keep heat from escaping our home would be considered a green home improvement, but it would cost a large sum of money to get the work done. Inadequate savings The aim of going green in many cases, such as building an energy-efficient home or purchasing a hybrid vehicle is to reduce environmental impact while saving money in the long term. Green buildings and vehicles tend to use less energy, so initial costs can often be recouped over time through energy savings. The problem is that the savings generated by going green are often less than expected; they do not make up for the initial cost quickly enough to make them economically viable. Increased capital outlays Some green conversions require an initial cash outlay that decreases the firm’s bottom-line performance while the investment is paying for itself. This can decrease the earnings or annual profits of a firm. Uneven competition 178 CU IDOL SELF LEARNING MATERIAL (SLM)

In the business world, going green can be an attractive goal to gain goodwill and consumer support, but unless green improvements are economically viable, it can put a business at a competitive disadvantage. For instance, if one company decides to adhere to strict, self-imposed pollution standards which require the installation of new technology and workers, while another sets loose standards, the second company will be at an advantage since they will have lower production costs. Marginal impact While going green is focused on reducing harm to the environment, the impact that any specific individual can have on the environment by going green is often negligible. The theory is that if everyone were to go green, it would have a significant and noticeable impact, but not everyone can be convinced to go green, and many believe that doing so has no real impact outside of the economics. This makes going green a personal choice for many. Employee apathy and reluctance Many employees feel that it is not their responsibility to protect the environment while they are at work. But the newly educated workforce is emphasizing on environmental management consciousness when they choose their employers, Green HRM Practices Researchers (Cohen and Taylor, 2010; Ehner, 2009; Behrend, 2009; Philips, 2007) suggest a few Green HRM practices, which are mentioned below: • Encouraging employees, through training and compensation, is to find ways to reduce the use of environmentally damaging chemicals in their products. • Assisting employees in identifying ways to recycle products that can be used for playgrounds for children who don’t have access to healthy places to play. • Designing a company’s HRM system is to reflect equity, development, and well-being, thus contributing to the long-term health and sustainability of both internal (employees) and external communities. • Emphasizing long-term employment security is to avoid disruption for employees, their families, and their communities. • Use of job portals of companies for recruitment and custom of telephone, internet, and video interviews, which can lessen the travel requirements of the candidate and affecting the reduction in paperwork. • Green rewards to employees can be provided by companies in the arrangement of the nature-friendly workplace and lifestyle benefits through providing carbon credit equalizers, free bicycles, and pollution-free vehicles for transportation to the workplace to engage employees in green agenda. 179 CU IDOL SELF LEARNING MATERIAL (SLM)

• Talented, skilled, and experienced employees are environmentally conscious now, and they always look for self-actualization to be committed to their work. Green HR can create this commitment by following green values and practices. • Green actions can occur with minimum use of paper and printed materials in recruitment, training and development, and performance appraisal. • A company can create a green business environment by reducing the use of printed materials, increased ‘recycling, using eco-friendly grocery and lunch bags, and prohibiting the use of bottled water, plastic in the workplace. • Luminous light bulbs and other energy-saving green devices can be used in the workplace. • Companies can inspire their employees to change their travel and transportation ways through reducing official car trips, using public transport for business travel, carpooling, providing interest-free loans to purchase hybrid cars, and cycling or walking to work. • Conduct business meetings and conferences through the internet, telephone, and video conferencing wherever possible to reduce business travel. • Provide flexible work opportunities to employees in telework or work from home by using emails and company portals through intranet and internet. • Wellness programs for employees, their family members, and general people can be arranged to focus on physical fitness, proper nutrition, and a healthy lifestyle. As an important green objective, environmental management can be included in the mission statement of the company as a part of their social responsibility. Organizations can arrange cleanliness and waste management initiative in the workplaces and surrounding society to cause awareness about green issues. • Encourage the employee to turn off lights, computers, and printers after work hours and on weekends for further energy reductions. • Inspire employees to place computers and printers in energy-saving settings when they will be away for a while. • Turn off office lights while attending meetings and at night and over the weekend. Turn lights off in restrooms, conference rooms, libraries, and so forth when the room is not in use. • Work with IT to switch to laptops over desktop computers because Laptops consume up to 90% less power. • Arrange an air conditioning system with discretion. • Purchase large or refillable containers of creamer, sugar, salt, pepper, and butter instead of individual containers. • Arrange green-themed games to promote environmentally friendly behaviour and staff togetherness. • Provide green promotion, which includes loan discounts on fuel-efficient cars and energy- saving home improvements, discounts at local green merchants. 180 CU IDOL SELF LEARNING MATERIAL (SLM)

E-HRM E-HRM has been defined as “a way of implementing HR strategies, policies and practices in organizations through a conscious and directed support of and/or with the full use of web- technology-based channels” or more recently, and more broadly, as “the planning, implementation, and application of information systems for both networking and supporting actors in their shared performing of HR activities”. e-HRM can also be defined as the planning, implementation and application of information technology for both networking and supporting the HR activities e-HRM is in essence the devolution of HR operations to management and employees. They access these operations typically through intranet or other web-technology channels. From this ground, e-HRM has expanded to embrace the delivery of virtually all HR policies. Within the system of e-HRM, it is possible for margin managers to use desktop computers to organize and conduct appraisals, plan training and development, evaluate labour costs, and examine indicators for turnover and absenteeism. Employees can also use a system of e-HRM to plan their personal improvement, apply for promotion and new jobs, and access a range of information on HR policy. Systems of e-HRM are increasingly encouraged by dedicated software produced by private suppliers. Types & Goals On the basis of functionalities, we can divide e-HRM into three different levels or tiers. In this section, we will be having a brief idea about these three tiers. Operational e-HRM − It is about administrative functions like payroll and employee personal data. All the employee details are stored in the database and regularly updated. Relational e-HRM − It is about supporting business processes. This is done by means of selection, training, recruitment, performance management, career development of the employees and so forth. Transformational e-HRM − It is about strategic HR exercises such as knowledge management and strategic re-orientation. An organization may decide to pursue E-HRM policies from any number of these tiers to meet their HR goals. e-HRM is seen as the potential to develop services to HR department clients (both employees and management), develop efficiency and cost effectiveness within the HR department, and permit HR to become a strategic partner in achieving organizational goals. 181 CU IDOL SELF LEARNING MATERIAL (SLM)

In recruiting aspect, we have a number of websites for recruiting of employees in industries. Some of the popular and important web sites in India are listed below. • naukri.com • indeedjobalert.com • jobsahead.com • monsterindia.com • careerindia.com • placementindia.com • jobsearch.rediff.com • bestjobsindia.in • jobzing.com • cybermediadice.com • Careerjet.co.in We have mentioned a few of the examples showing e-HRM, but there are lot more we can use. Our ATM transactions, automatic updating system, e-library, e-governance, all come under e-HRM. These are some of the examples showing e-HRM in India. It is a huge branch of study; in this section, we have just introduced the concept of e-HRM. EMPLOYEE EMPOWERMENT ENGAGEMENT Employee empowerment is a term used to express the ways in which staff can make their own decisions without consulting superiors. These decisions may vary in effect depending on the level of empowerment your organization wishes its employees to have. Employee empowerment usually begins with training, which can transition an entire company toward an empowerment model where employees are trusted to make responsible decisions that benefit the company as a whole. Or, it could merely mean giving employees the ability to make some decisions on their own, but still putting parameters in place to govern those decisions. With greater responsibility, employees feel appreciated and will work for the greater good of your organization. By offering employees choice and participation on a level that actually affects daily production, your employees are more a part of the company, and view themselves as ambassadors and will work to justify your trust with enhanced performance. Employee engagement Employee engagement is the concept that when employees have choices, they will act in a way that benefits their company's interests. An engaged employee is a person who is fully involved in, and enthusiastic about, his or her work. Less than 30 percent of all employees actually feel engaged in their jobs, according to a 2008 Employee Engagement Report. Highly engaged employees believe 182 CU IDOL SELF LEARNING MATERIAL (SLM)

they can positively affect the quality of their organization's products or services. Those engaged employees work with passion and feel a strong connection to their company. Employee Engagement Types Employee Engagement refers to the emotional attachment an employee has with the organization. An employee is said to be highly engaged, if he is fully absorbed or encouraged to perform his task beyond what typically is expected in his job role. An organization is a collection of individuals who come together and work towards the realization of a common objective. Larger the number of people working together, larger is the size of the organization and vice-versa. However, for an organization to flourish, it is important for the employees to operate at their full potential, which unfortunately is not the case in most of the organizations. Employee engagement is not an exact science. At the core of employee engagement are some values. These values determine the why, how and what of that company. Not all employees in an organization utilize their full potential. There may be many reasons responsible for the same. They may not associate with the goal of the company, they may have problem with their team, the boss or the subordinate or it may be a general problem of attitude. An organization is a collection of a large number of individuals striving towards the accomplishment of a common objective. Ideally, every employee must work to their full potential to further the organization’s reputation and interests, but however this is not the case in most of the companies. Based on the level of commitment, the employees can be classified into the following three categories Fig 12.1 Employee Engagement Types Actively Disengaged Employees: This is the first category of employees, who are unhappy and resentful and spreads unhappiness in the organization. Such employees are bad for the organization since they are always provoking and convincing the other employees to leave their jobs and move out of the organization. However, these employees last longer in the firm and remove the prospective employees whom they perceive will 183 CU IDOL SELF LEARNING MATERIAL (SLM)

attain higher position or move to the next job level in the near future. They do so, to get ahead in their jobs by removing the potential candidates. Engaged Employees: The engaged employees are those who work with full passion and are emotionally attached to the organization. They are innovative and provide new ideas to move the organization forward. Such employees are optimistic and spread positivity among the co-workers. They personalize the goals and objectives and always work for the betterment of the organization. Not Engaged Employees: This is the category in which majority of the employees in the organization fall. These are the ones who seek directions from their superior and do only that work which has been asked for. Such employees do put in their time, but not passion and energy into their work. They like to receive only one instruction at a time and lacks innovativeness. These employees can hold either a negative or positive attitude towards the organization. Thus, an employee can fall into either of these categories depending on his emotional attachment to the firm. The emotional attachment refers to the strong emotional bond employee shares with the organization Employee Engagement Process We can segregate the entire process of Employee Engagement into the following five categories Fig 12.2 Employee Engagement Process Prepare and Design The first step in the process is about discovering the specific requirements of your organization and deciding the priorities. After that, a customized design of carrying the whole process can be designed. It is recommended to seek advice of an expert management consultant to increase the chances of getting it done right at the first attempt. Employee Engagement Survey 184 CU IDOL SELF LEARNING MATERIAL (SLM)

Design the questions of the employee engagement survey and deploy it with the help of an appropriate media. It can be either in printed form or set online depending on the comfort level of the employees and your questionnaire evaluation process. Result Analysis It is the most important step in the entire process. It is the time when reports are to be analysed to find out what exactly motivates employees to perform their best and what disengages and compels them to leave the organization. The results and information can then be delivered through presentations. Action Planning ‘How to turn the results of the survey into an action’ is a challenging question that organizations need to deal with utmost care. Coaching of line managers as well as HR professionals is very important to tell them how to take appropriate actions to engage employees. They should also be told about the do’s and don’ts, so that they can successfully implement the changes. Action Follow-up Action follow up is necessary in order to find out if the action has been taken in the right direction or not and if it is producing the desired results. Communication and project management processes are the backbone of the entire Employee Engagement Process. Communication involves plan follow-up, providing timely information and involvement of each level of organizational hierarchy. Phases of an Employee Engagement Cycle Fig 12.3 Phases of an Employee Engagement Cycle The Attract Phase The first phase of the employee engagement cycle is attracting the best talent from the industry. This phase involves creating a positive impression about the work culture and employee career as a potential employer. The Acquire Phase 185 CU IDOL SELF LEARNING MATERIAL (SLM)

The acquire phase involves more than one aspect. It includes − • The way these potential candidates are interacted while advertising a position. • Keeping the promises that were made while hiring them. • Providing the new joiners, a right kind of work culture. The Advance Phase Continuous moving of the talent is the last but an unending phase. It not only involves promoting the employees to a higher designation along with salary increments, but also growing them in other tangible and intangible ways. As mentioned earlier, employee engagement is not only about attracting, acquiring, and retaining the best talent but also advancing their experience and personality. Installing Engagement and Empower There are several steps that will help to empower and engage your employees. The top five are Covered here. 1. Perception of job importance - If your employees feel that their jobs are important, they will feel valued, and you will have employee loyalty. 2. Clear expectations - Clear expectations, basic materials, and equipment must be provided or negative emotions such as boredom may result. Employees will become more focused on getting through the day than about how to help the organization succeed. 3.Regular feedback from superiors - Feedback is the key to giving employees a sense of where they're going. Many companies are lacking in this department. This feedback has to be positive as well as constructively critical. 4. Use a suggestion box - Allowing your employees a say in what is being done in the work place will strengthen their pride in their job and let them feel as if they have an effect on the company's operations. 5. Effective communications - Employees want to know what is happening in the workplace. Accepting that employees wish to feel involved in what they are doing is the first step in creating a more productive work environment. Employee engagement and empowerment represent powerful ways to enhance productivity and profitability. Valued employees are happy employees; and happy employees are what drive business success GOLDEN HANDSHAKE A golden handshake is a clause in an executive employment contract that provides the executive with a significant severance package in the case that the executive loses their job through firing, restructuring, or even scheduled retirement. This can be in the form of cash, equity, and other benefits, and is often accompanied by an accelerated vesting of stock options. According to Investopedia, a golden handshake is similar to, but more generous than a golden parachute because it 186 CU IDOL SELF LEARNING MATERIAL (SLM)

not only provides monetary compensation and/or stock options at the termination of employment, but also includes the same severance packages executives would get at retirement. The term originated in Britain in the mid-1960s. It was coined by the city editor of the Daily Express, Frederick Ellis. It later gained currency in New Zealand in the late 1990s over the controversial departures of various state sector executives. A golden handshake can also be referred to as a golden parachute. Typically, \"golden handshakes\" are offered only to high-ranking executives by major corporations and may entail a value measured in millions of dollars. Golden handshakes are given to offset the risk inherent in taking the new job, since high-ranking executives have a high likelihood of being fired and since a company requiring an outsider to come in at such a high level may be in a precarious financial position. Their use has caused some investors concern since they do not specify that the executive has to perform well. In some high-profile instances, executives cashed in their stock options, while under their stewardship their companies lost millions of dollars and thousands of workers were laid off. Special Considerations Occasionally non-executives receive a golden handshake as a bonus. It is usually drastically different than the compensation that CEOs and top executives get, so one might call it a \"silver handshake.\" Nevertheless, it is better than leaving with nothing. An example of this is automotive companies that buy out union workers' contracts. This can then free up that capital to hire new workers at a more advantageous labour cost. Another example is people who are forced into early retirement. Often times companies want to bring in new talent so these people are paid severance packages. Criticism of Golden Handshakes Golden handshakes can be very controversial. They can damage a company's public image because large executive payoffs are viewed as a reward for failure. For example, in 2010 British the oil company BP had an oil spill that occurred in the Gulf of Mexico as a result of the explosion of the Deepwater Horizon oil rig. The rig was leased to BP for exploration of the Macondo Prospect, an oil field off the coast of Louisiana. After the accident, which resulted in costs to the company of more than $60 billion, BP's CEO Tony Hayward was pushed out. However, he received a golden handshake pay-out of a year's salary, worth $1.61 million, in addition to keeping his approximately $17 million pension fund. 187 CU IDOL SELF LEARNING MATERIAL (SLM)

Other famous golden handshake controversies occurred during the 2008 financial crisis. After many of these banks got into financial trouble, top executives were forced to depart but left with large pay packages intact. Some big banks allowed top-level staff to cash out of incentive programs by accelerating the vesting of their stock awards. For example, Antonio Weiss, a former Lazard banker, acknowledged that he received up to $21 million in unvested income and deferred compensation following his departure. Bank shareholders who were left with worthless stock and bond investments were upset by these agreements. Since then, some companies have given investors a say on executive pay packages at shareholder meetings. These shareholder votes are usually non-binding, but do provide a strong signal to management about investors' attitude toward excessive executive pay-outs. GLASS CEILING The glass ceiling is a metaphor referring to an artificial barrier that prevents women and minorities from being promoted to managerial- and executive-level positions within an organization. The phrase “glass ceiling” is used to describe the difficulties faced by women when trying to move to higher roles in a male-dominated hierarchy. The barriers are most often unwritten, meaning that women are more likely to be restricted from advancing through accepted norms and implicit biases rather than defined corporate policies. The term “glass ceiling” was popularized in a 1986 Wall Street Journal article about the corporate hierarchy. The glass ceiling is a metaphor for an artificial barrier preventing women from being promoted to top jobs in management. In recent years the term has been broadened to include discrimination against minorities as well. Understanding the Glass Ceiling The glass ceiling concept was first popularized in a 1986 Wall Street Journal article discussing the corporate hierarchy and how invisible barriers seemed to be preventing women from advancing in their careers past a certain level. (In 2015, the Wall Street Journal itself reported that the concept goes back to the 1970s, quoting Gay Bryant, former editor of Working Woman magazine, and the concept may have originated with two women at Hewlett-Packard.) In more recent years the analysis of the glass ceiling has expanded to include issues preventing not only women from moving up but also minorities. Research shows that diverse groups make better decisions than homogenous ones, making shattering the glass ceiling good for a company’s bottom line. Companies have responded to the equality gap by focusing on measures to increase diversity. This has included hiring personnel specifically tasked with ensuring that women and minorities see improved representation in management-level positions. By focusing on policies that reduce or eliminate the glass ceiling, companies can ensure that the most qualified candidates hold decision- 188 CU IDOL SELF LEARNING MATERIAL (SLM)

making positions. Additionally, research has shown that diverse groups are more successful in making decisions than homogeneous ones, which has the effect of signalling to companies that eliminating the glass ceiling can positively affect their bottom lines. History of the Glass Ceiling The equality gap varies from country to country, and in some cases, it is driven by cultural stances against women participating in the workforce. In 2005 women accounted for nearly half of the workforce, but less than 10% of managers in the United States. While the percentage of upper-level positions held by women was somewhat higher in Fortune 500 companies, women who held CEO positions still earned less than men. In 2019 there were 33 female chief executive officers (CEOs) leading Fortune 500 companies—the highest number ever—but still only 6.6% of the total list. In response to the growing concern over barriers preventing women and minorities from advancing, the U.S. Department of Labour launched the Glass Ceiling Commission in 1991. It was charged with identifying the types of barriers that exist and policies that companies had undertaken or could undertake to increase diversity in managerial and executive levels. The commission found that qualified women and minorities were being denied the opportunity to compete for or win decision- making positions. It also found that the perceptions of both employees and employers often included stereotypes that held women and minorities in a negative light. When Hillary Clinton ran for president in 2008 and 2016, she repeatedly spoke of her goal of shattering the “highest, hardest glass ceiling” by becoming America’s first female president. Had Mrs. Clinton won in 2008, at the height of the Great Recession, she might have been seen as the victim of a related term, the “glass cliff.” Coined by professors Michelle K. Ryan and Alexander Haslam ofthe University of Exeter, United Kingdom, in 2004, it refers to the practice, which they documented in a study of Great Britain’s FTSE 100 companies, of promoting women to positions of power in times of crisis, when failure is a greater possibility. IHRM International Human Resource Management (IHRM) can be defined as a set of activities targeting human resource management at the international level. It strives to meet organizational objectives and achieve competitive advantage over competitors at national and international level. IHRM comprises of typical HRM functions such as recruitment, selection, training and development, performance appraisal and dismissal done at the international level and additional exercises such as global skills management, expatriate management and so on. In short, IHRM is concerned with handling the human resources at Multinational Companies (MNCs) and it includes managing three types of employees − 189 CU IDOL SELF LEARNING MATERIAL (SLM)

Home country employees − Employees residing in the home country of the company where the corporate head quarter is situated, for example, an Indian working in India for some company whose headquarters are in India itself. Host country employees − Employees residing in the nation in which the subsidiary is located, for example, an Indian working as an NRI in some foreign country. Third country employees − These are the employees who are not from home country or host country but are employed at the additional or corporate headquarters. For example, an Indian MNC, which has its corporate office in America, may employ a French person as the CEO to the subsidiary. The Frenchman employed is a third country employee. IHRM vs. HRM There are many similarities between HRM at the national as well as international level. However, let us have a look at the differences between them with the help of points given below − • Domestic HRM takes place at the national level, that is, within a country and IHRM takes place at the international level, that is, in between two or more than two countries. • Domestic HRM is bothered about managing employees belonging to one nation and IHRM is bothered about managing employees belonging the home country and host country as well as third country employees. • Domestic HRM is concerned with managing limited number of HRM activities at the national level and IHRM is concerned with managing additional activities such as expatriate management. • Domestic HRM is less complicated due to less imprint from the external environment. IHRM is comparatively more complicated, as it is deeply affected by the external factors such as cultural distance and institutional factors. We can conclude that both IHRM and HRM share some grounds of similarities as well as dissimilarities, but both have their own importance. Further, they contribute to the development of a country in a combined manner. TALENT MANAGEMENT Talent management indicates the skills of attracting highly skilled workers, integrating new workers, and improving and retaining current workers to meet the current and future business objectives. Mona Please remove the color bubbles as 190 thewordsare in’white’ color. If this is printed, the words will not be clear.Pls keep this black and white only CU IDOL SELF LEARNING MATERIAL (SLM)

Fig 12.4 TALENT MANAGEMENT Companies involved in a talent management strategy shift the duties of employees from the human resources department to all managers throughout the company. It is also called Human Capital Management (HCM). Talent management is basically concerned with coordinating, collaborating and managing the different talents people have to offer within a company. This is done by studying and examining each individual on the basis of their skills, talent, personality and character in relation to filling a particular vacancy within the company. Every individual has different skills to offer and the difficult part for a company is choosing those individuals who fit in with the existing company culture. Effective HR procedures will be able to identify these individuals and appoint them appropriately. Functions of Talent Management After gathering all the skilled people required for the job, we need to handle them. This is not possible without specifying the operations that need to be undertaken in talent management. Various functions that organizations should perform with the help of HRM and other departments are given below − • Talent requirement analysis • Allocating the talent resources or sources • Influencing talents towards the organization Mona • Recruiting or nominating the in house or outsourced talents -----------------------•-----M---a--n--a-g--i-n--g---combat ive salaries or professional fees Please rienm’wohvitee’thc•eolocroT.lroIfaritbhnuiisnbigbsleapsnridnatsepdro, gress the wordsare of talent pool the words will not be clear.Pls keep 191 this black and white only CU IDOL SELF LEARNING MATERIAL (SLM)

• Performance examination of talent • Career and prosperity planning • Withholding management We can conclude that talent management or human capital management is a set of business practices that manages the planning, acquisition, development, retention and growth of talent in order to achieve business goals with optimized performance. Advantages of Effective Talent Management If talent management is done properly, it would lead the organization prosper wonderfully, as all the employees in the firm would be masters in their own department and will give their best to achieve the goals and objectives of the company. That way, the competency gap between necessary competencies by the industry and available competencies minimizes significantly. The main advantages of effective talent management are − • Continuously grooms the organization's effectiveness and efficiency. • Helps in achieving the targeted business goals with superior performance. • Improves organization's overall culture and work climate. • Provides people with high level of satisfaction with their jobs. • Improves withholding of talent and reduces people turnover. • Manages better overall growth of people associated with the organization. It is essential that the right candidates having the required skillset are recruited in order to make use of their skills and utilize them for the development of both the individual as well as the company. This is possible only with the help of talent management. INTERNATIONAL HR PRACTICES Some of the major dimensions involved in practices in international HRM are as follows: A researcher Dowling having reviewed the literature available on international HRM concluded that it included more “functions and activities, broader perspectives, more involvement in employee’s personal life, changes in emphasis as the work force mix Parent Company Nationals (PCNs) varies. Host Country National (HCNs) varies, risk exposure, more external influences. Depending on the distinct international context, there cannot be a single approach as perfect and fool proof for managing human resources at international level. However, the various dimensions involved in the context have to be considered before implementing a particular approach or mix of approaches for managing HR at the local level or corporate headquarters. With this in view, we now discuss the major considerations or dimensions involved in formulating HR practices in an international context. 192 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Planning: There are usually three approaches to HR planning in multination. These are: ethnocentric, polycentric, and geocentric. In ethnocentric policy, all key management positions are filled by parent company nationals and foreign subsidiaries are being locally staffed or what is termed as HCNs (Home Country Nationals). The reasons given for following ethnocentric planning policy include lack of managerial talent in the host country, desire to maintain a unified corporate culture and tighter control and desire to disseminate the parent firm’s core competencies across foreign subsidiaries. This policy is usually followed at an early stage of “internationalisation”. Researchers” have, however, identified some major problems with this approach. They feel it limits promotional opportunities of HCNs which may lead to reduced productivity. PCNs unfamiliarity with local conditions, on the other hand, could be the negative factor. In polycentric approach, the foreign subsidiaries are managed by host country nationals and home- office headquarters by parent-country nationals. This approach may reduce the local cultural misunderstandings that expatriate managers may exhibit. The advantage of this approach is that adjustment and language learning problems are eliminated. American Express and Nestle follow this approach for staffing their foreign subsidiaries. In contrast to the former approaches, the geocentric approach has accent on ability rather than on nationality. This approach seeks the best people for key jobs throughout the organization regardless of nationality. This approach seems to identify with the spirit of the times and enable a firm to develop an international executive cadre and reduce the tendency of national identification of managers with units. The drawbacks of this approach, if any, are it faces conflict with polices of local governments who desire foreign subsidiaries to employ their citizens, cumbersome paper work, and increased relocation and training costs. Morgan” has presented these three planning policies as shown in Figure 1. 193 CU IDOL SELF LEARNING MATERIAL (SLM)

Fig 12.5 Human Resource Planning Processes 2. Recruitment and Selection: Recruitment and selection functions of HRM are performed to ensure right man on right job at right time and right place. However, this is not so easy, more especially in case of MNCs. According to Solomon, 20% to 25% of all overseas assignments fail mainly due to recruitment reason. Hence, recruitment and selection matter in human resource management. Selectors usually play safe by placing a heavy emphasis on technical qualifications and little on the individual ability to adapt to a foreign environment that is, drastically and culturally different, Foreign placements make demand on expatriate employee that are different from what the employee would face if posted in his or her home country. For example, the expatriate employee will have to cope with new work force, with colleagues with drastically different cultural inclinations, coupled with, if the spouse and children also accompany, the problems of adjustments with new place and people, making new friends, shopping in strange surroundings, learning language, and attending new schools. The research has shown beyond doubt that though technical competence is important for success, relational abilities increase the probability of successful performance. In his study, Tung” found that lack or relational skills was a principal cause for failure of individuals to cope in a multinational environment. He reported that when a US food manufacturer sent its marketing manager to Japan for 18 months, the process of his adjustment lost the company 98% of its market share to a major European competitor. Thus, selecting employees for foreign assignments means screening them for those traits that predict success in adapting to what may be dramatically new environments. A recent research study has identified five factors perceived by international employees to contribute to success in a foreign assignment. 194 CU IDOL SELF LEARNING MATERIAL (SLM)

They were: job knowledge and motivation, relational skills, flexibility/ adaptability, extra cultural openness, and family situation. Monappa views that in a multicultural work force, human resource practices have to be reactive rather than proactive. 3. Training: Training is essentially imparted to improve job skills of the employees. It should also coincide with staffing needs. Accordingly, employees in an MNC need induction, orientation and training to be imparted in the social, cultural, business and technical aspects to make them, fit for business requirements of today and tomorrow. An expert suggests that overseas employees need four-level training to be imparted. These are: Level I. training focuses on the impact of cultural differences, and on raising trainees’ awareness of such differences and their impact on business outcomes. Level II. Focuses on attitudes and aims at getting participants to understand how attitudes (both positive and negative) are formed and how they influence behaviour. Level III. Training provides factual knowledge about the target country. Finally, Level IV provides skill building in areas like language, adjustment and adaptation skills. Beyond these special training practices, the need for traditional training is also felt for development of overseas employees. As in IBM, such training is imparted by rotating employees’ assignments. This helps employees grow professionally. Besides, IBM and other major MNC firms have established their Management Development Centres (MDCs) around the world where executives can come to hone their skills. The success of the Japanese MNCs is attributed, to a large extent, to their strong training practices. Japanese companies impart different kinds of training to their employees. Some send them for graduate programmes, some send them abroad to train in business law and engineering and familiarize themselves with foreign principles of management. There is also the Institute of International Studies and Training in Japan, established as a joint venture among business, government and academic circles, to promote training activity in the country. 4. Compensation: The issue of compensation/remuneration in case of international employees is a tricky one for two reasons. First, paying all the employees of one rank the same compensation satisfies the norm of equitable remuneration. However, it raises more problems than it solves. The fact remains that as a second reason, the cost of living can be significantly varying among the countries. 195 CU IDOL SELF LEARNING MATERIAL (SLM)

For example, it can be enormously more expensive to live in America than in India. It these cost-or- living differences are not duly considered while determining compensation for overseas employees, it may be almost impossible to get employees to take these high-cost assignments. Therefore, paying compensation that not just satisfies employees but also seems fair and equitable is no simple matter The most common approach for formulating multinational employees’ compensation is to equalize purchasing power across countries, a technique known as the Balance Sheet Approach”. The basic idea behind this approach is that each foreign employee should enjoy the same standard of living he/she would have enjoyed at home. For this, multinational pay equal base pay to employees plus some allowances in the form of mobility allowance, housing allowance, children’s education allowance, etc., to regain lost purchasing power due to relocation. In India with the process of liberalization and globalization, the government has allowed companies to pay their managers salary packages which are more in keeping with those of their counterparts abroad. Unless salary and benefits are more or less equitably distributed through the different units of a multinational, it can cause problems of demotivation and lacklustre performance. This would cause more damage to the bottom line than the increase in benefits paid to individual employees. 5. Performance Appraisal: Like compensation, several things complicate the task of appraising a foreign employee’s performance. Two are the most crucial ones. One, who will appraise? Two, what will be the criterion of appraising? Local managers having some inputs can appraise the expatriate employee. But such appraisal is likely to be distorted by cultural differences. For example a US expatriate employee in India may be appraised somewhat negatively by his host- country bosses who find his use of participative decision making inappropriate in their culture If the expatriate is appraised by objective criteria such as profits and market share, it may also not be quite appropriate because local events such as political instability, for example, will have their bearing on the expatriate performance. In order to resolve the above appraisal issues, experts have suggested a five-point procedure for improving the expatriate employee’s appraisal. They are: • Stipulate the difficulty involved in assignments at the work place of expatriate. For example, working as expatriate in China is generally considered more difficult than working in India. • Give more weight in evaluation towards the on-site manager’s appraisal than towards the home- site manager’s appraisal which will be mainly based on distant perceptions of the employees’ performance. 196 CU IDOL SELF LEARNING MATERIAL (SLM)