MBA606_Human Resource Management(Draft 3) (1)

c. tomotivatetherightkindofpersonnel;and d. togetthebestoutoftherightkind ofpersonnelin thefaceofcompetition. The absence of internal equity leads to dissatisfaction among executives. In organizations, there aredisparities between compensation patterns. For whatever reasons, compensation practices are kept asguarded secrets by organisations. Surveys of compensation practices tells us among other things, thatexecutivecompensationpracticesarebasedonfactorsliketraditions,technology,managementbeliefs and executive acceptance. To be effective, executive compensation has to be seen as a whole,evolved for a situation and administered in letter and spirit. Essentially, an executive compensationsystem or scheme for an organisation has to be tailor-made. Also, it has to be reviewed and revisedfrom time to time. Top management should develop an approach to compensation that accounts forinternalaswellasexternalequity.The executivecompensationwillsucceedwhenthe totalpackage: i) establishessufficientlevelsofpay; ii) provides internalandexternalcompetitiveness; iii) suppliesopportunity,securityandstatus; iv) maximisesaftertaxearnings; v) calls forthmaximumeffort; and vi) makestheexecutiveamuchbetterperformerbothasan individualandasateammemberboth fortodayandfortomorrow. RETENTIONSTRATEGIES When one of the best employees resigns from a job, then it tends to become a nightmare for themanager. Immediately, there should be a plan to balance the number of challenges to tackle. As themarket demands skilled and talented professionals, it is very difficult to find replacement for atalentedresourceandfurtherbalancetheteam. The resignation of a talented employee will alsohave an impact on the other team members whostart tofollowhis footsteps and walk out of the organization. Hence, amanager’s mostimportantjobis tocreateaneffectiveemployeeretentionstrategy. KeyEmployeeRetentionStrategies A good retention policy starts from the time when the employees are hired till the time, they leavethe organization. Following are some of the employment practices which will help create an impactonemployeeretention−  Recruitment and Hiring − Right and correct resource should be hired in the first place. Itcalls for quite a lot of time and effort. When the bond between the employees and theorganizationiscordial andthemixbetweentherequiredskillsetforaparticularjobrequirementisalsoright,retentionislessli kelytobe anissue.  Orientation and Onboarding − Treating employees the right way in the early stages 143 CUIDOLSELFLEARNINGMATERIAL(SLM)

ofemploymentis vitalandenhancesretention. 144 CUIDOLSELFLEARNINGMATERIAL(SLM)

 Training and Development− Training and developmentare the key factors in helpingemployeesgrow withyourcompanyandstaymarketableintheirfield.  Performance Evaluation − When employees are aware of what they are doing and the areastheyneedtoimproveon,itisbeneficialboth fortheorganizationand theemployee.  PayandBenefits−Whiletodaymanyemployeestendtoratefactorssuchascareerdevelopment higher than pay, good pay and benefits still count to be the deciding factors foremployee retention.  Internal Communication − Effective communication will help reduce the communicationgapinanorganizationandcurbemployeeattrition.Employeesneedtoknowandbere mindedonaregularbasishowtheorganization isdoingand whattheycando tohelp.  Termination and Outplacement − Employees who leave on good terms are much morelikely to recommend your company, and in doing so, help you attract and retain futureemployees. BasicPracticesforEmployeeRetention  Createanenvironmentwheretheemployeeswanttoworkandhavefun.  Givingtheemployeesresponsibilitywithpowerandauthority.  Havetrustandfaithintheemployeeandgiverespecttothem.  Keepprovidingthemfeedbackontheirperformance.  Providetheminformationandknowledge.  Makeemployeesrealizethattheyarethemostvaluableassetoftheorganization.  Recognizeandappreciatetheirachievements.  Keeptheirmoralehigh. Thesepracticesarecategorizedintothreelevels–Low,MediumandHigh. 145 CUIDOLSELFLEARNINGMATERIAL(SLM)

EmployeeRetentionPolicies The followingadditionalpoliciesneedtobeconsideredforemployeeretention−  Theresponsibilitiesmustbedelegatedaccordingtothe individual’sspecializationandinterests.  Constantdisputesamongemployeesencouragethemtogofor achange.  Thehumanresourcesdepartmentmustensurethattherightcandidatesarehired.  Employeerecognitionisoneofthemostimportantfactorswhichgoalongwayinretainingemploye es.  Performanceappraisalsarealsoimportantforanemployeetostaymotivatedandavoidlookin gforachange.  Thesalaryoftheemployeesmustbediscussedat thetimeoftheinterview.  Thecompany’srulesandregulationsshouldbe madetobenefittheemployees. SUMMARY  The goals of compensation administration are to design the lowest cost-pay structure that willattract,motivate,andretaincompetentemployees.Itconsistsoforganisation’spolicies,procedur es,andrules determiningthecompensationsystem. 146 CUIDOLSELFLEARNINGMATERIAL(SLM)

 Compensation is usually composed of the basic wage or salary, allowances,incentive orbonuses,andbenefits.  Compensation administration intends to develop the lowest-cost pay structure that will notonly attract, inspire and motivate capable employees but also be perceived as fair by theseemployees. Establishing strategic pay plans involved four main decisions: pay level decision,paystructure decision,differentialpaydecisionandadministration decision.  Job evaluation serves as the foundation of most wage and salary systems. The question of fairpay involves both internal and external equity. The fact that how employees are paid hasimportant consequences for individual, group and organisational performance. Top executives,particularly receive special attention in the compensation literature because of their potentialinfluence onorganisationalsuccess.  Knowledge-basedorganizationsthesedaysfollowaperformance-basedpaymentplanoffering awards to employees for cost saving suggestions, bonuses for perfect attendance ormeritpay based on supervisory appraisals.Thebenefits and services offeredby variousorganizations in India may be broadly put into five compartments. Payment for time notworked,employeesecurity,safetyandhealth,welfareandrecreationfacilitiesandoldageand retirement benefits. Organisations face many challenges while deciding on remunerationofanemployee.Thesemaybe seenasdifferentoptionspresentbefore them  RetentionStrategies- Mostbusinessownersandmanagersthinkretentionisbasedoncompensationissues- wageandsalarylevels,incentives,andgoldenhandcuffs--wheninreality the drivers gomuch deeper into the human psyche to the actions and attitudes thatmakeemployeesfeelsuccessful,secureandappreciated.Asaresult,asoundretentionstrategysho uldfocusonandtacticallyaddressfourkeyelements- performance,communication,loyaltyandcompetitiveadvantage. KEYWORDS/ABBREVIATIONS  Achievement award – Provides an incentive, in the form of a onetime payment, to eligibleemployees for attaining measurable goals above and beyond normal duties that support theuniversity’smissionandobjectives.  Adjustment- Salarychangesoutsideofthenormalsalaryprograms(promotions,reclassification's,merits,etc.)tore medy salaryissuessuch asexternal pressureinhighdemand areas,internalsalary compression,and/orretention considerations.  Base Pay – fixed compensation paid to an individual;' it is typically expressed as an hourlyrateoranannualamount.Thecalculationofbasepayis:(hourlyrate*2080).  Benefit:Anindirectrewardgiventoanemployeeorgroup of employeesasapartoforganizationalmembership.  Compensation: It refers to the financial and non-financial rewards to the employees for 147 CUIDOLSELFLEARNINGMATERIAL(SLM)

theirservicesrenderedtothecompany. 148 CUIDOLSELFLEARNINGMATERIAL(SLM)

 Earnings:Totalamount ofremunerationreceived byanemployeeduring agivenperiod.  InternalEquity-criterionusedtodeterminefairnessinpayamongemployeesofanorganization.  Skill – Based Pay - an alternative compensation system in which pay is based, not upon thespecific job the employee performs, but upon the number of skills or tasks the employee iscapable of per- forming. Such pay systems are linked to flexible work as- segments or both,rotatingjobs,typicalofself-managedworkteams.  Salary (Salary Rate) - for workers hired on a weekly, monthly, or annual basis (e.g., clerical,technical, managerial employees), the rate of pay normally expressed in terms of Rupees perweek,month,oryear,asopposedtopaymentforanhourofwork.  Salary Structure-structure of job grades and pay ranges established within an organization.Thesalarystructuremaybeexpressedintermsofjobgrades,jobevaluationpoints,orpoli cy LEARNINGACTIVITY 1. Isthere anysystemofproductionbonusand/oranyotherkind ofincentivepaymentinyourorganization?Ifso,givedetails ……………………………………………………………………………………………………….… ……………………………………………………………………………………………..................... 2. Ifyouwereestablishingyourownbusiness, whichbenefitswouldyoubestatutorilyrequiredtopayandwhichyouwouldoffervoluntarily? ……………………………………………………………………………………………………….… ……………………………………………………………………………………………..................... UNITENDQUESTIONS(MCQANDDESCRIPTIVE) A. DescriptiveTypesQuestion 1. Listdownthebasicprinciplesofcompensationadministration? 2. Identifyanddiscussthecharacteristicfeaturesofexecutive compensation? 3. Whattypeofcompensationsystemnormallymotivatethe executives? 4. Analysethefuturetrend ofemployeecompensationinIndia. 5. Compareandcontrastindividual,group,andorganisation- wideperformancebonussystems.Howaretheyalike?and/orDifferent? 6. Ifwepaypredominantlyforjobsratherthanpeople,how canwerewardthetrulyexceptionalperformingemployee? 7. Howcanemployers makeemployeesrealisethatbenefitsandservices mustbeearned? 8. Whichretentionstrategieswillyouimplyinyour organizationasHRManager? 149 CUIDOLSELFLEARNINGMATERIAL(SLM)

B. MultipleChoiceQuestions 1. Paymentofcashrewardsfortheworkextracted fromtheemployeeisnormallycalled a. direct compensation b. indirect compensation c. non-monetarycompensation d. None oftheabove 2. Whichofthefollowingisthefixedcomponentincompensationpackages? a. Profit-sharing b. Basesalary c. Gain-sharing d. Equitystockoptions 3. Insuranceschemes, retirementbenefitsandleavetravelconcessionareexamplesof a. indirectmonetarycompensation b. directmonetarycompensation c. non-monetarycompensation d. None oftheabove 4. Ensuringafairbalancebetweenanemployee’scontributionstothejobandtherewardsreceivedinreturnfro mthatjobis theessenceof a. equitytheory b. expectancytheory c. agencytheory d. contingencytheory 5. Whichofthefollowingisnotanobjectiveofexecutivecompensationplans? a. Separatingownershipinterestandcontrollinginterest b. Enhancingemployeemotivation, involvementandcommitment c. Promoting managerialefficiency d. Attractingandretainingthebestexecutives Answers: 1-a,2-b,3-a,4-a,5-a REFERENCES  Duari,Pravin.(2010). HumanResourceManagement. NewYork:PearsonEducation. 150 CUIDOLSELFLEARNINGMATERIAL(SLM)

 Dessler,G.(2013).HumanResourceManagement.Delhi:Prentice-Hall.  Flippo,EdwinB.(1966).Personnel/HumanResourceManagement.NewDelhi:TataMcG raw Hills.  Haldar, U.K. AndSarkar.(2012).HumanResourceManagement. NewDelhi:Oxford&IBH.  Saiyadain,M.S.HumanResourceManagement.NewDelhi:TataMcGrawHill.  Sanghi, S. (2004).The HandbookofCompetencyMapping. NewDelhi:SagePublications  www.benefitslink.com  www.ssa.gov/ssa  www.compensationlink.com  http://www.workfamily.com  https://www.yourarticlelibrary.com 151 CUIDOLSELFLEARNINGMATERIAL(SLM)

UNIT-9MANAGINGETHICALISSUESINHRM Structure Learning ObjectivesIntroducti on Types Approaches FactorsAffectingEthicalBehaviouratWork RoleofHRMintheDevelopment ofEthicalBehaviourSummary KeyWords/Abbreviations LearningActivity Unit EndQuestions(MCQandDescriptive)Re ferences LEARNINGOBJECTIVES Afterstudyingthisunit,youwillbeableto:  Explainthe typesandapproachesofethicalissuesofHRM  Outlinethefactorsaffectingethicalbehaviouratwork  DiscussroleofHRMindevelopmentofethicalbehaviour INTRODUCTION Human resource management deals with manpower planning and development related activities in anorganization. Arguably it is that branch of management where ethics really matter, since it concernshuman issuesspecially those of compensation,development,industrial relations andhealth andsafetyissues.Thereishoweversufficientdisagreementfromvariousquarters. There are differentschools of thought that differ in theirviewpoint on role of ethics or ethicsinhuman resource development. One group of thought leaders believes that since in business, marketsgovern the organizational interests and these interests are met through people, the latter are thereforeat the highest risk. They believe that markets claim profits in the name of stakeholders and unless wehave protocols, standards and procedures the same will develop into a demon monopolizing marketsandcrushinghumancapital;HR ethicsarebecomemandatory. There is another group of ethicists inspired by neo-liberalism who believe that there are no businessethics apart from realization of higher profits through utilization of human resources. They argue thatbyutilizinghumanresourcesoptimally,there ismorevaluecreationforthe shareholders, 152 CUIDOLSELFLEARNINGMATERIAL(SLM)

organization and the society and since employees are part of the society or organization, they areindirectly benefited. Nevertheless, ethics in human resource management has become a perennialdebateoflate! Discussions in ethics in HRM stem from employee relationships and whether or not there can be astandard for the same. Employee rights and duties and freedom and discrimination at the workplaceareissuesdiscussedandcoveredbymosttextsonthetopic.Somearguethattherearecertainthingsin employment relationship that are constant others disagree with the same. For example, right toprivacy, right to be paid in accordance with the work (fair compensation) and right to privacy aresome areas thatcannotbecompromisedupon. TYPES Of all the organisational issues or problems, ethical issues are the mostdifficultones tohandle ordeal with. Issues arise in employment, remuneration and benefits, industrial relations and health andsafety. Fig 9.1Types Diagrammatic representation of HR Ethical IssuesCashandCompensationPlans There are ethical issues pertaining to the salaries, executive perquisites and the annual incentive plansetc. The HR manager is often under pressure to raise the band of base salaries. There is increasedpressure upon the HR function to pay out more incentives to the top management and the justificationfor the same is put as the need to retain the latter. Further ethical issues crop in HR when long termcompensationandincentive plansare designedin consultationwiththe CEOoranexternal 153 CUIDOLSELFLEARNINGMATERIAL(SLM)

consultant. While deciding upon the pay-out there is pressure on favouring the interests of the topmanagementincomparisontothatofotheremployeesandstakeholders. Race,Genderand Disability Inmany organisations till recently theemployees weredifferentiated on thebasis of theirrace,gender, origin and their disability. Not anymore ever since the evolution of laws and a regulatoryframework that has standardised employee behaviours towards each other. In good organisations theonly differentiating factor is performance! In addition, the power of filing litigation has made putorganisationsonthebackfoot.Managersaretrainedforaligningbehaviourandavoidingdiscriminatorypr actices. EmploymentIssues Human resource practitioners face bigger dilemmas in employee hiring. One dilemma stem from thepressure of hiring someone who has been recommended by a friend, someone from your family or atopexecutive. Yet another dilemma arises when you have already hired someone and he/she is later found to havepresented fake documents. Two cases may arise and both are critical. In the first case the person hasbeen trained and the position is critical. In the second case the person has been highly appreciated forhis work during his short stint or he/she has a unique blend of skills with the right kind of attitude.Boththesituationsaresufficientlydilemmatictoleaveevenaseasoned HRcampaignerinafix. PrivacyIssues Any person working with any organisation is an individual and has a personal side to his existencewhich he demands should be respected and not intruded. The employee wants the organisation toprotect his/her personal life. This personal life may encompass things like his religious, political andsocial beliefs etc. However certain situations may arise that mandate snooping behaviours on the partof the employer. For example, mail scanning is one of the activities used to track the activities of anemployeewhoisbelievedtobeengagedin activitiesthatare notin thelargerbenefitof theorganisation. Similarly, there are ethical issues in HR thatpertain tohealth and safety, restructuring and layoffsand employee responsibilities. There is still a debate going on whether such activities are ethicallypermitted or not. Layoffs,for example, are nomore considered as unethical as they were thought ofinthepast. 154 CUIDOLSELFLEARNINGMATERIAL(SLM)

APPROACHES In a business setting manger are put to test when they face the challenge of resolving an ethicaldilemma. Often certain situations donotfall in the ambitof procedures or the official code ofconductandthisis whenthemanagersfeeltheheat. The problem with ethical decision-makingis thata decision in itself cannotbe taken in avacuum;one single decision affects lots of other decisions and the key is to strike a balance to ensure a win- winsituationis arrivedupon. Though there are nogolden rules to resolve ethical issues butmanagers can take a number ofinitiativestoresolve ethicalissues.Abriefdescriptionisgivenbelow. KnowthePrinciples In ethical decision making there are three basic principles that can be used for resolution of problem.Thesethree principlesarethatofintuitionism,moralidealismandutilitarianism. The principle of intuition works on the assumption that the HR person or the manager is competentenough to understand the seriousness of the situation and act accordingly, such that the final decisiondoesnotbringanyharmtoanypersoninvolveddirectlyorindirectly. The principle of moral idealism on the other hand states that there is a clear distinction between goodand bad, between what is acceptable and what is not and that the same is true for all situations. Ittherefore askstoabidebythe ruleoflawwithoutanyexception. Utilitarianism concernsitselfwiththeresultsortheimplications.Thereisnocleardistinctionbetween what is good and what is bad; the focus is on the situation and the outcome. What may beacceptable in a certain situation can be unacceptable at some other place. It underlines that if the netresultofthedecisionisanincreaseinthehappinessoftheorganization,thedecisionistherightone. DebateMoralChoices Beforetakingadecision,moraldecisionsneedtobethoughtuponandnotjustacceptedblindly.Itisagoodideat omakehypotheticalsituations,developcasestudiesandthenengageothersinbrainstorming upon the same. This throws some light into the unknown aspects and widens thehorizonofunderstandingandrationaldecisionmaking. BalanceSheetApproach In balance sheet approach, the manager writes down the pros and cons of the decision. This helpsarrive ataclearpictureofthingsandbyorganizingthingsinabetterway. 155 CUIDOLSELFLEARNINGMATERIAL(SLM)

EngagePeopleUpandDowntheHierarchy One good practice is toannounce ones stand on various ethical issues loudly such thata clearmessagetoeverymemberoftheorganizationandtothosewhoareatthegreaterriskoffallingpreyto unethicalpractices.Thiswillpreventtheemployeesfromresortingtounethicalmeans. IntegratingEthicalDecision Making intoStrategicManagement Morality and ethical make up for a perennial debate and ethical perfection is almost impossible. Abetter way to deal with this is to integrate ethical decision making into strategic management of theorganization. The way the HR manager gains an alternate perspective rather than the traditionalemployee orientedorstakeholder-orientedview. All these steps can bring better clarity into resolving ethical dilemmas. The choice lies with themanagerandhisownandthe organizationvalueclarity. FACTORSAFFECTINGETHICALBEHAVIOURATWORK There are several internal as well as external factors affecting employee behaviour. Let us go throughthemindetail: Leadership Managers and leaders play an important role in influencing the behaviour of individuals at workplace.It is the responsibility of leaders to set a direction for team members. In majority of the cases, it hasbeenobservedthatemployeesdonotfeellikegoingtoworkwhentheyhavestrictbosses.Youneedto stand by your team always. Guide them and help them in their day to day operations and help themacquire new skills and upgrade their knowledge. Make them feel important. As a leader,you need tobe astrong source of inspiration foryour subordinates. If you donotreach office on time, how canyouexpectyourteammemberstoadhere tothe rulesandregulationsoforganization? WorkCulture Employees need to feel comfortable at workplace for them to stay positive and happy. Rules andregulationsshouldbesameforeveryone.Employeesoughttobeencouragedtorespecttheirreportingboss esandfollowthecodeofethics.Donothavecomplicatedreportingsystems.Transparency at all levels is essential. You must know what your team member is up to and vice-a-versa. Job security is one of the most crucial factors affecting employee behaviour. Stand by yourteam at the times of crisis. Do not throw them out during bad times. Believe me, they will never leaveyou. JobResponsibilities Employeesshouldbe askedtodowhatbestthey can perform.Donotoverburden 156 employees.Encouragethemtoupgradetheirskillsfromtimetotime. CUIDOLSELFLEARNINGMATERIAL(SLM)

EffectiveCommunication Managers need to communicate effectively with team members. The moment, employees feel left out,they loseinterestin work.They need tohavea say in organization’smajor decisions.Let themexpresstheirviewsandcomeoutwiththeirproblems.Grievancesneedtobeaddressedimmediately. FamilyandPersonalLife Trust me, if you fight with your family members or relatives in the morning, you feel restless thewhole day.It has been observed that individualswith a troubledbackground or problematicfamilylife tend to behave irrationally at workplace. Employees who have strained relationships with familymembers like to sit till late at work and spoil the entire work culture. Individuals from very poorfamilies also have a habit of stealing office stationery and taking things to home. Conflicts inpersonal life lead to stress and irrational behaviour. Also, individuals should try not to bring theirpersonalproblemstowork.Trytokeepyourpersonalandprofessionallife separate. RelationshipatWork It is necessary to have friends at the workplace. You need people around to talk to, discuss and shareexperiences. It is really not possible to work in isolation. Not allowing employees to interact withfellowworkersleadsto frustrationand stressatworkplace.Avoid arguing withteammembers. ROLEOFHRMINTHEDEVELOPMENTOFETHICALBEHAVIOUR Management plays an essential role in inculcating workplace ethics in employees. Bosses need to setan example for their subordinates. You need to come on time if you expect your team members toreachofficeontime. Management needs to act as a source of inspiration for the employees. It is generally observed thatteam managers, leaders influence their team members to a large extent. Superiors strictly need toadhere to the rules and regulations of the organization for their employees tofollow the same.Remember, you have norights to scoldyour subordinates if youyourself are at fault. Moreover noone would bother to listen to you as well. Don’t expect your team members to sit till late if youyourselfleaveearly. It is the role of the management to motivate the employees and guide them as to what is right andwrong. Remember a boss is like the captain of the ship. It is your responsibility to take your teammembersalongandprovideconstantmentoring.Rebukingisnottheonlysolution.Ifyouknowoneofyour teammembersismeetinghisgirlfriendduringofficehours,doyoufeelinsultingorcriticizing in front of others would help? NO. Call him to your cabin or speak to him in private andmake him realize that it is not morally correct to bunk office. You need to counsel him and make himunderstand his mistakepolitely.Trustme,beingrudewouldmakethesituationworse.Donotdiscuss 157 CUIDOLSELFLEARNINGMATERIAL(SLM)

the matter in front of others. The other person might not like it. Your job is to make the other personfeel guilty and realize that indeed he has done something wrong. Believe me; he would never repeathismistake. Constantcommunicationbetweenthemanagementandemployeesisofutmostimportanceininculcating workplace ethics. Management ought to be transparent with its employees. Let them havea say in company’s decisions. Let them decide what is right and what is wrong for them. Sit withthem, discuss, brainstorm ideas and listen to what they have to say. Never ignore their opinions. Letthemcomeoutwiththeirgrievances. Lend a sympathetic ear to their problems as well. Try to provide them a solution. If you feel most ofyour employees have a problem coming to officeearly as they in any case have tostay back till latein the evening as per the client’s availability, please adjust the office timings accordingly. How canyou expect your employees to reach office sharp at 8 AM when they are leaving for the day at 10 PM.Remember, rules and regulations should not act as a hindrance in their performance? Be realistic andlogical. If the problem is genuine and faced by a major chunk of employees, there is no harm inchangingthepolicies.Thinkfromtheemployee’sperspectiveaswell.Policiesshouldnotbetoorigid. Don’t be too strict with the employees. If someone is not present in the office, please do not call hisfamily members to enquire about him. No one would like it. We all are mature professionals tounderstand that if there is work, we need to finish it first rather than waste our time in gossiping andsurfing social networking sites.Managementcan’tforce employees to respect the organization.Respect must be commanded and not demanded. Respect your employees if you expect the same inreturn. Some organizations do not easily release their employees. Remember, you cannot stop an individualfrom changing his job if he/she has already decided to move on. Try to convince him once and ifhe/sheis stillnotwilling to continue,lethimgo.Employees depend on fake relievingletters,experiencecertificateswhentheydonotgetitfromtheirpreviousorganizationontime. SUMMARY  Companies and staff today are experiencing anarrayofpressuresthat create conditionsfor potential ethical dilemmas and conflicts. some of the reasons that have been identifiedfor why ethical conflicts occurring apply tobusinessingeneral,suchasinequalitiesbetweenexchangepartners,attemptstoreducecompetition andconflictingpressuresresultingfromattemptingtosatisfyavarietyofstakeholderinterestsandperf ormancedemands.Hence the conditions are ripeforethical problems arisinginbusinessmorewidely. 158 CUIDOLSELFLEARNINGMATERIAL(SLM)

 HRmanagers’roleinthe ethicalconductwithinanorganisationcanfeedinatvariouspoints: o inthenurturingofanethicalorganisationalculture; o in the recruitment of staff who will set the ethical tone oftheorganisationandupholdits values andethicalclimate; o intheresolutionofethicalconflictwhenitoccurs;and o indealingwiththe aftermathofanethicalconflict.  Thefirst twoof these can helpto minimise the likelihoodof ethicalproblems occurringinthefirstplace.  Ethical conflict, onceithas arisen,presents anumberof challenges;itcan giverisetodistortionof thefactstoprotectvestedinterestsby thepartiesconcerned,avoidanceofinvolvement by witnesses for fearofreprisalsorjeopardising their own relationshipswithoneormorepartiesandabuseofpowerintheoutcomesoftheconflict.  HR managers can help to ensure that organisations operate with due concern for fairness,integrity and justice both to reduce the likelihoodofethicalconflictsarising and indealingwiththemintheeventthattheydo.  Ethically unhealthy organisations will likely lose good staff and encourage a detrimental zero- summentalityratherthanawin-winone.  In handling ethical problems HRmanagers need to appreciate the complexities involved,avoid escalation of the issue andprotectagainstthe emotionalandreputationalimpactthatcanresultfromthem.  It is also increasingly important for HR managers to developa global perspective onethicalissues. KEYWORDS/ABBREVIATIONS  Code of ethics: guidelines written for a professional body to follow. These guidelines arealways developedby the professional body,monitored by thatbody, and enforced by thatbody  Ethics:Thetheoretical study of morality.Ethicsisalsothestandardof morality thataprofessionshouldfollow.  Virtue:The quality of livingby one's stated moral values.A person has virtue if theyarefair,honest,responsible,andbeneficent.  Value: Individual relative worth placed onsome intrinsicorextrinsicobject,experience,orpersons. 159 CUIDOLSELFLEARNINGMATERIAL(SLM)

LEARNINGACTIVITY 1. You are a recruiter for your company. The company has a very attractive training program for newfinancial analysts. You will get 250-300 applicants for 15-25 slots. Your boss has asked you tointerview the daughter of a major client. The investments manager has asked you give the daughter averypositive (hire)recommendation.Howshouldyourespondtotherequests? ………………………………………………………………………………………………………… …………………………………………………………........................................................................ 2. The temporary staffing agency you use is in financial trouble as a result of losing some clients.You wonderifthisasanopportunitytoget abetterrate bythreatening tochangeagencies.Whatarethe ethicalissuesinthiscase? ………………………………………………………………………………………….……………… …………………………………………………………………………………………………………. UNITENDQUESTIONS(MCQANDDESCRIPTIVE) A. DescriptiveTypesQuestions 1. StatevarioustypesofethicalissuesinHRM. 2. Listdownthefactorsaffectingbehaviouratworkplace. 3. IdentifyanddiscussroleofHRmanagerindevelopmentofEthicalvaluesatwork? 4. Howcanyouresolveethicalissuesarisingatworkplace? 5. WriteshortnoteonManaging ethicalissuesinHR. B. MultipleChoiceQuestions 1. Awrittenstatementofpoliciesandprinciplesthat guidesthebehaviourofallemployeesiscalled a. codeofethics b. wordofethics c. ethicaldilemma d. None oftheabove 2. TheHRpolicywhichisbased onthephilosophyoftheutmostgoodforthegreatest numberofpeopleis coveredunderthe a. Utilitarianapproach b. approachbasedonrights c. approachbasedonjustice d. None oftheabove 3.Whichofthefollowingisnotusuallytheobjective ofacodeofethics? 160 CUIDOLSELFLEARNINGMATERIAL(SLM)

a. to create anethicalworkplace b. to evaluatethe ethicalcomponentsoftheproposed actionsoftheemployees c. toimprovethepublicimageofthecompany d. toenhancetheprofitsofthebusinesscontinuously 4. WhichofthefollowingisnotacoreprincipleoftheSocietyforHumanResourceManagement’sCodeofE thics? a. professionalresponsibility b. fairnessandjustice c. professionaldevelopment d. None oftheabove 5. Whichofthefollowingfactorsshapestheethicalbehaviourofthemembersofanorganization? a. Thesupervisor’sbehaviour b. organizationalculture c. codeofethics d. Allofthe above Answers: 1-a,2-a,3-d,4-d,5-d REFERENCES  Duari,Pravin.(2010). HumanResourceManagement. NewYork:PearsonEducation.  Dessler,G.(2013).HumanResourceManagement.Delhi:Prentice-Hall.  Flippo, Edwin B. (1966). Personnel/Human Resource Management. New Delhi: TataMcGraw Hills.  Haldar, U.K. AndSarkar.(2012).HumanResourceManagement. NewDelhi:Oxford&IBH.  https://shodhganga.inflibnet.ac.in/bitstream/10603/75693/13/13_chapter%205.pdf  https://www.yourarticlelibrary.com  https://www.managementstudyguide.com 161 CUIDOLSELFLEARNINGMATERIAL(SLM)

UNIT–10INDUSTRIALDISPUTES Structure Learning ObjectivesIntroducti on Causes Types OutcomesofIndustrialDisputes TradeUnions:Objectives&Functions.S ummary KeyWords/Abbreviations LearningActivity Unit EndQuestions(MCQand Descriptive)References LEARNINGOBJECTIVES Afterstudyingthisunit,youwillbeableto:  Discussthe causesofindustrialdisputes  Outline typesofdisputes  Stateoutcomesof industrialdisputes  Explaintheobjectives&functionsoftrade union INTRODUCTION In common parlance, dispute means difference or disagreement of strife over some issues be- tweenthe parties. As regards industrial dispute, since its settlement proceeds as per the legal provi- sionscontained in the ‘Industrial Disputes’ Act, 1947, hence it seems pertinent to study the concept ofindustrialdisputes fromalegalisticangle. 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, orbetween workmen and workmen, which is connected with the employmentor non- employmentortheterms ofemploymentandconditionsofemploymentofanyperson”. The above definition is too broad and includes differences even between groups of workmen andemployers engaged in an industry. However, in practice, industrial disputes mainly relate to thedifference betweentheworkmenandtheemployers. 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 theinterestofallormajorityofworkmenisinvolvedinit. 162 CUIDOLSELFLEARNINGMATERIAL(SLM)

MeaningofIndustrialDisputes: AnIndustrialDisputemeansanydisputeordifferencebetweenemployersandemployersoremployers and workmen or between workmen and workmen which isconnected with employ-mentornon- employmentorterms ofemploymentorconditions oflabour,ofanyperson. Everyhumanbeing(sayaworker)hascertainneeds,e.g.,economicneeds,socialneedsandneedsforsecurity. Whentheseneedsdonotgetsatisfied,therearisesaconflictbetweenlabourandcapital. A conflict means a struggle or clash between the interests of the employer and the workers. Forexample, in order to compete in the market, the employer wouldlike to reduce the price of hisproduct and for doing sohe will tend to reduce the wages of the workers; the workers would notagreeto itand theresultwillbean industrialconflictbetweentheemployerand theworkers. When an industrial conflict (which otherwise is general in nature) acquires a concrete and specificdisplay or revelation,itbecomes an Industrial Dispute.A conflicttakes the shape of IndustrialDisputeassoonastheissuesofcontroversyaresubmittedtothe employerfornegotiations. Anindustrialdisputemaybelookeduponasacontroversyordisagreementbetweenemployer (ormanagement)andtheworkmenonissues suchas: i. Wagesandotherbenefits, ii. Workhoursandworkingconditions,etc. Industrialdisputescauselossesto,workers, managementandnationasawhole. (i) Workerslosetheirwages. (ii) Managementlosesitsprofit, (iii) Publicsuffersduetoshortageofgoodsinthemarket. (iv) Nationsuffersdueto lossofproduction. CAUSESOFINDUSTRIALDISPUTES Eventhesmallest ofthereasonscancontributetotheraising ofconflictsinanorganizationalsetup ifitimpacts the respondenttoa greatextent. Let us have an in-depth analysis of each of these causes by reaching out to the roots of industrialdisputes: (i) PsychologicalCauses:  Difficultyinadjustingwitheachother(i.e., employerandworker).  Clashofpersonalities.  AuthoritarianLeadership(administration).  Demand forself-respectandrecognitionbyworkers. 163 CUIDOLSELFLEARNINGMATERIAL(SLM)

 Strictdiscipline. (ii) InstitutionalCauses:  Nonrecognitionofthelabourunionbythemanagement.  Mattersofcollectivebargaining.  Unfairconditionsandpractices.  Pressingworkers, nottobecomemembersofunion,etc. (iii) EconomicCauses: (a) TermsandConditionsofEmployment:  Morehoursofwork.  Workinginnightshifts.  Promotion,layoff,retrenchment,dismissal,etc. (b) WorkingConditions:  Environmentalconditionssuchastoohot,toocold, noisy,dirty,messy,etc.  Improperplant andworkstationlayout.  Oldandtroublegiving machines.  Frequentchangesinproducts, etc. (c) Wagesand OtherBenefits:  Inadequatewages.  Undesireddeductions fromwages.  Poorfringebenefits.  Nobonusorotherincentives,etc. (iv) DenialofLegalandOtherRightsofWorkers:  Notproceedingasperlabourlawsandregulations, standingordersetc.  Violationofalreadymademutualagreements(i.e.,betweenemployerandworkers). TYPESOFDISPUTES Industrial disputesareapartof organizationallifeandariseoutof variouseconomicornon-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.Thenon- economicfactorsincludevictimizationofworkers,ill-treatmentbystaffmembers,sympathetic strikes,politicalfactors,indiscipline,etc. 164 CUIDOLSELFLEARNINGMATERIAL(SLM)

Trade unions and other forums generally bargain for higher wages and allow-ances to meet the risingcost of living and to increase their standards of living. Differences of opinion in these issues lead todisputes. Retrenchment and layoffs also continue to be important factors that give rise to industrialdisputes. Indiscipline, unruliness, disorderliness, disruptive behaviour, aggres-sion, hostility, violence,etc., jeopardize the normal workingin any type of organization. Industrial disputes alsorevolvearoundthenumberofleavesand working hoursthoughtheyhavenot beensoimportantcauses. Industrialdisputescanbebroadlycategorizedinthefollowing ways: Type1.Strikes: A strike is a very powerful weapon used by trade unions and other labour associations to get theirdemands accepted. It generally involves quitting of work by a group of workers for the purpose ofbringingthepressureontheiremployersothattheirdemandsgetaccepted.Whenworkerscollectivelycease toworkina particularindustry,theyare saidtobeonstrike. According to Industrial Disputes Act 1947, a strike is “a cessation of work by a body of personsemployed in an industry acting in combination; or a concerted refusal of any number of persons whoare or have been so employed to continue to work or to accept employment; or a refusal under acommonunderstanding ofanynumberofsuchpersonstocontinuetoworkortoacceptemployment”. This definition throws light on a few aspects of a strike. Firstly, a strike is a referred to as stoppage ofworkbyagroupofworkersemployedinaparticularindustry.Secondly,italsoincludestherefusalofanumbe rofemployeestocontinueworkundertheiremployer. In a strike, a group of workers agree to stop working to protest against something they think is unfairwheretheywork.Labourswithholdtheirservicesinordertopressurizetheiremploymentorgovernmen t to meet their demands. Demands made by strikers can range from asking for higherwages or better benefits to seeking changesin theworkplace environment.Strikes sometimes occurso thatemployerslisten more carefullytotheworkersandaddresstheirproblems. CausesofStrikes: 165 Strikescanoccur becauseofthefollowingreasons: 1. Dissatisfactionwithcompanypolicy 2. Salaryandincentiveproblems 3. Incrementnotuptothemark 4. Wrongfuldischarge ordismissalofworkmen 5. Withdrawalofanyconcessionorprivilege 6. Hoursofworkand restintervals 7. Leaveswithwagesandholidays CUIDOLSELFLEARNINGMATERIAL(SLM)

8. Bonus,profitsharing,providentfundandgratuity 9. Retrenchmentofworkmenandclosureofestablishment 10. Disputeconnectedwithminimumwages TypesofStrikes: i. EconomicStrike: Under this type of strike, labours stop their work to enforce their economic demands such as wagesand bonus. In these kinds of strikes, workers ask for increase in wages, allowances like travelingallowance, house rent allowance, dearness allowance, bonus and other facilities such as increase inprivilegeleaveandcasualleave. ii. SympatheticStrike: When workers of one unit or industry go on strike in sympathy with workers of another unit orindustry who are already on strike, it is called a sympathetic strike. The members of other unionsinvolve themselves in a strike to support or express their sympathy with the members of unions whoare on strike in other undertakings. The workers of sugar industry may go on strike in sympathy withtheirfellow workersofthetextileindustrywhomayalreadybe onstrike. iii. GeneralStrike: It means a strike by members of all or most of the unions in a region or an industry. It may be a strikeof all the workers in a particular region of industry to force demands common to all the workers.These strikes are usuallyintendedtocreate political pressure on the rulinggovernment, rather thanon any one employer. It may also be an extension of the sympathetic strike to express generalizedprotestbytheworkers. iv. SitDownStrike: In this case, workers do not absent themselves from their place of work when they are on strike. Theykeep control over production facilities.But do not work. Such a strikeis alsoknown as ‘pen down’or‘tooldown’strike.Workersshow uptotheirplace ofemployment,buttheyrefuse towork. They also refuse to leave, which makes it very difficult for employer to defy the union and take theworkers’ places. In June 1998, all the Municipal Corporation employees in Punjab observed a pendownstriketoprotestagainstthe non-acceptance oftheirdemandsbythe state government. v. SlowDownStrike: Employeesremainontheirjobsunder thistypeofstrike. Theydonotstopwork,butrestricttherateofoutputinanorganizedmanner.Theyadoptgo-slow tacticstoput pressure onthe employers. vi. Sick-Out(OrSick-In): 166 CUIDOLSELFLEARNINGMATERIAL(SLM)

In this strike, all or a significant number of union members call in sick on the same day. They don’tbreak 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 itwouldbelikeiftheyreallywentonstrike. vii. WildCatStrikes: These strikes are conducted by workers or employees without the authority and consent of unions. In2004, a significant number of advocated went on wild cat strike at the City Civil Court premises inBangalore. They were protesting against some remarks allegedly made against them by an AssistantCommissioner. Type2.Lockouts: A lockout is a work stoppage in which an employer prevents employees from working. It is declaredby employers to put pressure on their workers. This is different from a strike, in which employeesrefusetowork.Thus,alockoutisemployers’weaponwhileastrikeisraisedonpartofemployees. AccordingtoIndustrial Disputes Act1947, lockoutmeans the temporary closingof a place ofemployment or the suspension of work or the refusal by an employer to continue to employ anynumberofpersons employedbyhim. A lockout may happen for several reasons. When only part of a trade union votes to strike, thepurposeofalockoutistoputpressureonaunionbyreducingthenumberofmemberswhoareabletowork. For example, if a group of the workers strike so that the work of the rest of the workers becomesimpossible 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 intermittentwork-stoppages. Occupation of factories has been the traditional method of response to lockouts bythe workers’movement. Type3.Picketing: When workers are dissuaded from work by stationing certain men at the factory gates, such a step isknown as picketing. If picketing does not involve any violence, it is perfectly legal. Pickets areworkers who are on strike that stand at the entrance to their workplace. It is basically a method ofdrawingpublicattentiontowards thefactthatthereisadisputebetweenthemanagementandemployees. Thepurposeofpicketingis:  To stoporpersuadeworkersnotto go towork 167 CUIDOLSELFLEARNINGMATERIAL(SLM)

 Totellthe publicaboutthestrike  To persuadeworkerstotaketheirunion’sside Type4.Gherao: Gherao in Hindi means to surround. It denotes a collective action initiated by a group of workersunder which members of the management are prohibited from leaving the industrial establishmentpremises by workers whoblock the exitgates by forming human barricades. The workers maygherao the members of the management by blocking their exits and forcing them to stay inside theircabins. Themain object of gheraois toinflictphysical andmental torture to the person beinggheraoedandhencethisweapondisturbs theindustrialpeace toagreatextent. ProhibitionofStrikesandLockouts: 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 noticeof strike within the six weeks before striking. They cannot go on strike either within fourteen days ofproviding the strike noticeorbeforethe expiryofthe dateofstrikespecifiedinanysuchnotice. The same rule applies to the employers.Employers whoare carrying on a public utility servicecannot lockout any of their employees without giving them a prior notice within six weeks before thelockoutorwithinthefourteendaysofgivingsuchanotice.Moreover,thenoticeofstrikeorlockoutistobegiv eninaprescribedmanner showingthenumber ofpersonsinvolvedinthestrike/lockout. A notice should be issued on the day on which the lockout is declared just to intimate the appropriateauthorities about the lockout. The employer is supposed to report the number of notices of strikesreceived by him to the appropriate government or the authority prescribed by the government withinthe fivedays ofreceivingsuchnotices. IllegalStrikesandLockouts: A strike or a lockout is illegal if it is declared in noncompliance with the section 22 of IndustrialDisputes Act 1947, that is, if the notice period is not served or if the strike is held within the fourteendays of issuing the notice of strike. If a strike or lockout has already taken place and is being referredto a Board, the continuance of such a strike or lockout is not illegal provided it is in compliance withthe provisions of Act. Moreover, a lockout declared in consequence of an illegal strike or a strikedeclaredinconsequence ofanillegallockoutshallnotbe deemedtobeillegal. PenaltyforIllegalStrikesandLockouts: A workman who is involved in an illegal strike can be penalized with imprisonment for a termextendable to a month or with a fine or fifty rupees or both. In similar way, an employer who initiatesand continues a lockout is punishable with imprisonment extendable to a month or with a fine of onethousandrupees orboth. 154 CUIDOLSELFLEARNINGMATERIAL(SLM)

According to Section 25 of Industrial Disputes Act 1947, no person should provide any sort offinancial aid to any illegal strike or lockout. Any person who knowingly provides such a help insupport of any illegal strike or lockout is punishable with imprisonment for a term which may extendtosixmonths,orwithfine whichmayextendtoone thousandrupees,orwithboth. OUTCOMESOFINDUSTRIALDISPUTES The consequences of an industrial dispute are hazardous to the employer, employees, organization,societyandtheeconomy. However, it is taken as a useful tool by the workers, to raise their voice and put up their demands infront of the management or employers. It empowers the labours and protects their rights of speech inthe organization. Followingaresomeoftheessentialwaysin whichtheindustrialdisputestakesshapeintheorganizationand arecarried out bytheemployeesaswellastheemployersometimes: Fig.10.1ConsequencesofIndustrialDisputesS trikes It isa waythroughwhichagroupofworkmenexercise pressure onthemanagementbystoppingtheworkandprotestingagainstthe employerstogettheirdemandsfulfilled. Followingarethedifferenttypesofstrikes: PrimaryStrikes:Thestrikeswhicharedirectlyprojectedagainsttheemployersarecalledasprimarystrikes. Mona Some ofthemostcommonprimarystrikesare asfollows: Table is in color but printing will be aroun inblacknwhite.Pleaseremovethecolorssot dthew hat it does not form shadows ordsw CUIDOLSELFLEARNINGMATERIAL(SLM)

hen printed 155 CUIDOLSELFLEARNINGMATERIAL(SLM)

Gherao: Gherao refers to physically encircling the managers by the workmen to create a restrictedarea where no one can movein or out. The targeted managers are humiliated through; abuses alsotheyarerestrictedmoveinorout. Picketing: Picketing is the process of putting up signboards, play cards and banners by the workmento display their protest or dispute in front of the public. To involve maximum workers in the strike,some unionmembersaremade tostandatthefactorygatetoinfluenceotherstoo. Boycott:As thename suggests, boycott refers tointerruptingbusiness operations. Itrequests theother labourers to temporarily pull back their co-operation with the management and contribute to thestrike. StayAwayStrike:Inastay- awaystrike,theworkmenorganizeaprotestintheformofdemonstrations,marches,rallies,apartfromthework place. Pen Down Strike: It is also known as the sit-down strike or tools down strike. Though the workmencometotheworkplacedailyand alsoavailsthework facilities,theysitidleand stop working. Token Strike: A token strike is a short form of protest where the workmen stop their work for adefinite period. It is usually for as short as 24 hours, to hamper a day’s production or so and get theirdemandsfulfilledbythemanagement. Lightning Strike: The lightning strike is that form of strikes where the workmen call off the workimmediatelywithoutgivinganypriorinformationorwarningtothemanagement.Itisalsotermedasa catcallstrike. Go Slow Strike: This is another harmful way of protesting againstthe managementwhere theworkmen secretly plan to decrease their work speed so that the production is hampered. However, infrontofthe management,theypretendtobehighlycommittedtowardstheirjob. Work to Rule: In this type of strike, the employees strictly follow theirjob rules or contractandstopsperforminganyadditionaltask,otherthanwhatallismentionedintheiragreement. Hunger Strike: One of the most common forms of a strike is the hunger strike. The workmen go onfasting for an indefinite period and sit nearby the workplace or the employer’s house to project theirdemands. Secondary Strikes: The other name for the secondary strike is the sympathy strike. In this, the forceisapplied against thethird personhaving sound traderelationswiththeorganizationto indirectly 156 CUIDOLSELFLEARNINGMATERIAL(SLM)

incur a loss to the employer and the business. The third person does not have any other role to play insuchastrike. Other Strikes: There are undoubtedly other forms of strike too, which takes place on a vast levelinvolvingandaffectingalarge numberofpeople.These are asfollows: General Strike: The strikes which are conducted on a mass level,i.e., in the whole country or stateorcityinsteadofjustasingleorganizationforfulfilmentofademandunanimouslylikejobpermanencyora nincreaseinpay,etc. Political Strike: Any law or act proposed by the government for making changes to the workingterms or conditions when unaccepted by the workers is protested through political strike on a massivelevel. Particular Strike: The protest against a specific issue or person within a city, state or country andtake upacolossalformis termedas aparticularstrike. Bandhs: Bandh is adopted in countrieslike Nepal and India where a specific community or apolitical party calls for a general strike across the city or state or country. It is a form of civildisobedience andsometimes become violent,eveninvolvingstone attacksorarsonattacksattimes. Lockouts This form of an industrial dispute is raised by the employers to impose specific terms and conditionsontheworkers.Itisverydifferentfromlayoff,retrenchment,terminationorprohibitionofemploye es. In lockouts, the employer temporarily closes down the workplace or stops the work or takes actionlike suspendingthe workerstoforcethemtofollowthenew termsandconditions. TRADEUNIONS:OBJECTIVES&FUNCTIONS. A trade union is an association of workers formed with the object of improving the conditions ofworkers. It is formed for protecting the interests of workers. Workers have little bargaining capacitywhen they are unorganized. In fact, trade union movement began against the exploitation of workersbycertainmanagementsunderthe capitalistsystem. Asper Sec.2(6)TradeUnionsAct,1926: A trade union is a combination of persons.Whether temporary or permanent, primarily for thepurpose of regulating the relations between workers and employers or between workers for imposingrestrictive conditions on the conduct of any trade or business and includes the federations of two ormore tradeunions. 157 CUIDOLSELFLEARNINGMATERIAL(SLM)

ObjectivesofTrade Union: Thefollowing aretheobjectivesoftradeunion:  To improvethe economiclot ofworkersbysecuringthembetterwages.  Tosecureforworkersbetterworkingconditions.  Tosecurebonusfortheworkersfromtheprofitsoftheenterprise/organization.  Toensurestableemploymentforworkersandresisttheschemesofmanagementwhichreduce employmentopportunities.  To provide legal assistance to workers in connection with disputes regarding work andpaymentofwages.  Toprotectthejobsoflabouragainstretrenchmentandlayoffetc.  Toensurethatworkersgetasperrulesprovidentfund,pensionandotherbenefits.  Tosecurefortheworkersbettersafetyandhealthwelfareschemes.  Tosecureworkersparticipationinmanagement.  Toinculcatediscipline, self-respectanddignityamongworkers.  Toensureopportunitiesforpromotionandtraining.  Tosecureorganizationalefficiencyandhighproductivity.  Togenerateacommittedindustrialworkforceforimprovingproductivityofthesystem. FunctionsofTradeUnions:  Collectivebargainingwiththe managementforsecuringbetterworkenvironment fortheworkers/employees.  Providingsecurityto theworkersand keepingcheckoverthehiring andfiringofworkers.  Helpingthemanagementinredressalofgrievancesofworkersatappropriatelevel.  Ifanydispute/matter remainsunsettledreferringthematterforarbitration.  Tonegotiatewithmanagementcertainmatterslike hoursofwork, fringebenefits, wagesandmedicalfacilities andotherwelfareschemes.  Todevelopcooperationwithemployers.  Toarousepublicopinioninfavouroflabour/workers. SUMMARY  Industrial disputes are conflicts, disorder or unrest arising between workers and employers onany ground. Such disputes finally result in strikes, lockouts and mass refusal of employees towork in the organization until the dispute is resolved. So, it can be concluded that IndustrialDisputes harm both parties’ employees and employers and are always against the interest ofbothemployees andthe employers.  Industrialdisputesariseduetoseveralcausesrelatingtorecognition,retrenchment,employmentcond itions,indiscipline,wagesandallowances,bonus,ill-treatment,etc 158 CUIDOLSELFLEARNINGMATERIAL(SLM)

 The common consequences of industrial disputes are loss of production, income, and employ- ment and increase in inflationandcostofliving.Alternativelyspeaking,industrialdisputesinjureeconomicwelfareofthen ationbroadlyintwoways.  Firstly, work-stoppages impoverish the workers actuallyinvolvedinthe disputes and,thus,lessens,theirdemandforthegoodsmanufacturedbyotherindustries.  Secondly,iftheindustryunderwork- stoppagemanufacturesitemsthatareusedintheconductofotherindustries,itlessensthesupplyofraw materialsfortheirproduction.  A Trade Union is an organisation of workers, acting collectively, who seek to protect andpromotetheirmutualintereststhroughcollectivebargaining.  A trade union is a formal association of workers, acting collectively, who seekto protectand promote their mutual interests through collective action. Themain objective of anytrade union is to protect and promote the interests of its members. Unions perform certainsocial, political and fraternal functions as well. Industrial conflicts constitute militant andorganisedprotests againstexistingterms andconditions ofemployment.They occurinseveralformssuchasstrikes,lock-outs,gheraos,picketing,boycott,etc. KEY WORDS/ABBREVIATIONS  Complaint:Aspokenorwrittendissatisfactionbroughttotheattentionofthe supervisororthe shopsteward  Dissatisfaction:Anythingdisturbsanemployee,whetherornottheunrestisexpressedinwords.  Grievance:Aformalcomplaintorallegationbyanemployeeorgroupofemployeesmadetounfairtre atmentorviolationofaunioncontract.  Grievanceprocedure:Theprocessandguidelinestobefollowedbyemployees,managementortheu nionwhenresolvingdifferencesorconflicts.  International Labor Organization (ILO): A specialized agency of the United Nations thatdealswithlaborissues.  International representative:An officer of an international union whohas been appointedby the union’s executive board to serve as a liaison between the national or international leveloftheunionandlocals.  Industrial Conflict: Organized protest against prevailing industrial conditions raised by agrouporaclass ofworkers.  Industrial Dispute: Any dispute or difference between employers and employers, or betweenemployers and workmen or between workmen and workmen which is connected with theemployment or non-employment or the terms of employment or with the conditions of labourofanyperson. 159 CUIDOLSELFLEARNINGMATERIAL(SLM)

 IndustrialRelations:Itgenerallyreferstothecollectiverelationsbetweenemployersandemplo yeesas agroup.  Lock-out: Closing down of an undertaking or the suspension of work or the refusal of anemployertocontinuetoemployany numberofpersonsemployedbyhim.  Negotiation:An interpersonalprocessusedbytwoormore partieswherebybothorallmodifytheirdemands toreachanagreement.  Strike:Acollectivestoppageofworkbyagroupof workers.  TradeUnion:\"Avoluntaryorganizationofworkersformedtopromoteandprotecttheirinterest sbycollectiveaction\"(V.V.Giri). LEARNINGACTIVITY 1. Isunion influenceonthedecline?Ifyes,illustrateyour argumentswithexamplesfromthecorporateworld. ………………………………………………………………………………………………………. ………………………………………………………………………………………………………. 2. Doyouthinktherightoftheworkerstostrikeisafundamentalright- asguaranteedintheConstitutionofIndia? Why? ………………………………………………………………………………………………………… ……………………………………………………………………………………………………........ UNITENDQUESTIONS(MCQANDDESCRIPTIVE) A. DescriptiveTypesQuestions 1. Whatareindustrialdisputes? 2. Describecausesofdisputeswithrelevantexamples. 3. Identify&discussconsequencesofindustrialdisputeswithexamples. 4. ListdowntheobjectivesandfunctionsofTradeunions? 5. Listdowndifferenttypesofstrikeswithrelevantexamples. 6. Examinethecurrentstateoflabour- managementrelationsinIndia.Whatmeasureswouldyousuggesttomake thesemorecooperative? 7. DoyouthinkthattradeunionsinIndiahaveservedtheobjectivesforwhichtheywereformed? Justifyyouranswer. B. MultipleChoiceQuestions 160 1 Whoarethe actorsofIndustrial Relations? a. Workersandtheirorganisations b. Employersandtheirorganisations c. Governmentand theroleoftheState CUIDOLSELFLEARNINGMATERIAL(SLM)

d. alloftheabove 2 WhichisthemachineryforsettlementofIndustrialDisputes? a. IndustrialTribunal b. NationalTribunal c. Labourcourt d. alloftheabove 3 FirstNationalCommissiononLabour(NCL)submitteditsreportintheyear:a.1969 b.1958 c.1999 d.1947 4 SecondNationalCommissiononLabour(NCL)submitteditsreportinwhichyearandunderwhosec hairmanship? a. 1999,RavindraVarma b. 2000,RavindraVarma c. 1998, B.P.Wadia d. None oftheabove Answers: 1-d,2-d,3-a,4-a REFERENCES  Duari,Pravin.(2010). HumanResourceManagement. NewYork:PearsonEducation.  Dessler,G.(2013).HumanResourceManagement.Delhi:Prentice-Hall.  Flippo,EdwinB.(1966).Personnel/HumanResourceManagement.NewDelhi:TataMcG raw Hills.  Haldar, U.K. AndSarkar.(2012).HumanResourceManagement. NewDelhi:Oxford&IBH.  Aswathapa, K. (2008)5thed. HumanResourceManagement,TataMcGrawHill.  DipakKumarBhattacharyya,HumanResourceManagement, ExcelBooks.  Ivancevich,JM(2008), HumanResourceManagement,TataMcGrawHill.  MadhurimaLallandSakinaQasimZaidi,HumanResourceManagement,ExcelBooks.  PLRao,ComprehensiveHRM,ExcelBooks.  www.nirb.gov/index.html  www.fmcs.gov 161 CUIDOLSELFLEARNINGMATERIAL(SLM)

 www.adr.org  http://www.igc.org/igc/labornet 162 CUIDOLSELFLEARNINGMATERIAL(SLM)

UNIT–11MANAGINGEMPLOYEEGRIEVANCES Structure Learning ObjectivesIntroducti onCharacteristicsSo urces Techniques of Grievance IdentificationGrievanceProcedure. Summary KeyWords/Abbreviations LearningActivity Unit EndQuestions(MCQandDescriptive)R eferences LEARNINGOBJECTIVES Afterstudyingthisunit,youwillbeableto:  Identifythecharacteristicsand sourcesofgrievance  Explaintechniquesofgrievanceidentification  Describegrievance procedure INTRODUCTION Despite the best of management practices in acting and communicating, conflicts between employeesand the organisation will occur. Conflict per se is neither bad nor contrary to good organisation.Disagreementsanddissatisfactionscanbehelpfulinre- examiningthebasicassumptionsandpractices to the end that adjustments can bemade toimprove overall organizational effectiveness.The first step in the resolution of conflict is the discovery of the conflict and its exposure. Employerscandeviseandputinplaceavarietyofupwardchannelsofcommunication,andaproperlyconstitut edgrievanceprocedure isonesuch valuablechannel through which employeescan bringtheirdissatisfactiontothenoticeofmanagement.Itisdesirablethatorganisationsshouldbeproactive in designing and putting in place a formal grievance procedure, which allows employees toventilateandseekredressalofwork-relateddissatisfaction.Thereishardlyanyorganisationwherethe employees doriothave grievances of onekindoranother. The grievancesmaybe real orimaginary,valid orinvalid,genuine orfalse;yetin all cases,grievances produce unhappiness,discontent, indifference,lowmorale andfrustration,which may adversely affect the employees'commitment, concentration, efficiency and Grievance Handling effectiveness. A large number 163 CUIDOLSELFLEARNINGMATERIAL(SLM)

ofworkstoppages,shopfloorincidents,strikes,violentandDisciplineanddisorderlybehaviour 164 CUIDOLSELFLEARNINGMATERIAL(SLM)

patterns can be attributed to the faulty handling of grievances by managers or, in certain situations, totheir refusal to recognize the very existence of grievances. The costs of unattended or faultily handledgrievances canbevery highinterms of timelost,poorperformance,damage tothe plantandmachinery arising out of neglect or sabotage, employee resentment, poor customer service, resistanceto change, union-management conflict and so on. A well-defined, time-bound, in-house, grievanceredressal machinery would go a long way in maintaining industrial peace and harmony apart fromheighteningemployeecommitmentandmorale.Effectivegrievanceadministrationhelpsmanagement to shift from purely preventive and maintenance needs to the growth and developmentalneeds of employees such as improving communication, job redesign, integration with corporate goals,fosteringdemocraticandparticipativeculture. CHARACTERISTICS Agrievancemayhavethefollowingcharacteristics: i. Factual: Theemployer-employeerelationshipdependsuponthejobcontractinanyorganization.Thiscontract indicates the norms definingthelimits within which the employee expects the organizationto fulfill his aspirations,needs orexpectations.When theselegitimate needs of expectations oraspirationsare notfulfilled,the employeewillbe dissatisfiedwiththejob. Suchdissatisfactioniscalledfactualgrievance.Forinstance,whenanemployeeisnotgivenpromotion which is due to him or when work conditions are unsafe, grievances of employee relatingto these issues are based on facts. In other words, these grievances reflect the drawbacks in theimplementationoftheorganizationalpolicies. ii. Imaginary: When thejob contract is not clear-cut and does not indicate the norms defining thelimits withinwhich the employee expects the organization fulfill his needs or aspirations, the employee developssuch needs which the organization is not obliged to meet. Here, grievances are not based on facts.Eventhentheemployeefeelsaggrieved. Normally, the organization does not feel any kind of responsibility for such grievances and theirredressal, because they are based not only on wrong perceptions of the employee but also on wronginformation.However,such grievances canhavefar-reachingconsequences on theorganizationbecause the employees are likely to develop an altogether negative attitude towards the organizationwhichdecreases theireffectiveness andinvolvementinwork. iii. Disguised: In general organizations consider the basic requirements of their employees. Psychological needs oftheemployeessuchasneedforrecognition,affection,power,achievementetc.,arenormallyunattendedand ignored. 165 CUIDOLSELFLEARNINGMATERIAL(SLM)

For instance, an employee complaining very strongly about the working conditions in the office mayin turn be seeking some recognition and appreciation from his or her colleagues. Hence, disguisedgrievances should also be considered since they do have far-reaching consequences in case, they areunattendedandignored. 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,rationalorridiculous,inwritingornot.Thediscontentmaybe expressed orimplied. SOURCES Varioussourcesofgrievancemaybecategorizedunderthreeheads: (i) Managementpolicies, (ii) Workingconditionsand (iii) Personalfactors 1. Grievanceresultingfrommanagementpoliciesinclude:  Wagerates  Leavepolicy  Overtime  Lackofcareerplanning  Roleconflicts  Lackofregardfor collectiveagreement  Disparitybetweenskillofworkerandjobresponsibility 2. Grievanceresultingfromworkingconditionsinclude:  Poor safetyand bad physicalconditions  Unavailabilityoftoolsandpropermachinery  Negativeapproachtodiscipline  Unrealistictargets 3. Grievanceresultingfrominterpersonalfactorsinclude:  Poorrelationshipswithteammembers  Autocraticleadershipstyleofsuperiors  Poorrelationswithseniors  Conflictswithpeersand colleagues 166 CUIDOLSELFLEARNINGMATERIAL(SLM)

It is necessary to distinguish a complaint from grievance. A complaint is an indication of employeedissatisfaction that has not been submitted in written. On the other hand, a grievance is a complaintthathasbeenputinwritingandmadeformal. Grievances are symptoms of conflicts in industry. Therefore, management should be concerned withboth complaints and grievances, because both may be important indicators of potential problemswithin the workforce. Without a grievance procedure, managementmay be unable to respond toemployeeconcernssincemanagersareunawareofthem.Therefore,aformalgrievanceprocedureisa valuablecommunicationtoolfortheorganization. TECHNIQUESOFGRIEVANCEIDENTIFICATION Grievance should be redressed by adopting proactive approach rather than reactive approach. Theproactive approach addresses the factors responsible for emergence of grievance. In other words,managementdoesnotallowgrievancecausingsituationtoemerge. But in reactive approach, a particular grievance gets redressed but the underlying cause continues toexist.Unlessitisrootedoutlock,stock and barrel,therecannotbeanypermanentsolution. Thefollowingaretheproactivemethodsofaddressinggrievances: 1. ExitInterview Information collected from the exiting employee on various aspects of working conditions forcinghimtoquitissupposedtobe more crediblethanthose expressedbythe existingworkers. 2. GripeBoxSystem: Employees may be encouraged to drop anonymous complaints as they may fear that theiridentitymay invitevictimization especially when they complain against the management. Thismethod ismoreappropriatewhenthereislackoftrustandunderstandingbetweenemployeesandtheirsupervisors. 3. OpinionSurvey: Various surveys line morale survey, attitude survey, job satisfaction survey, grievance survey orcomprehensive survey comprising all the above aspects, reveal vital inputs about the negative aspectsof functioning of the organization. Since the survey is conducted by persons other than the supervisorandtherespondentsidentifyisnotinsisted upon,informationcollected islikelyto bereliable. 4. Meetings: Group meeting, periodical interviews, collective bargaining sessions, informal get-togethers may beusedtocollectinformationaboutgrievances. 167 CUIDOLSELFLEARNINGMATERIAL(SLM)

5. Open-DoorPolicy: Under this policy any employee can lodge complaint or file his grievance with the managerdesignatedforthispurpose.Theveryobjectiveofthispolicyistoencourageupwardcommunication. GRIEVANCEPROCEDURE Asalreadydiscussed, therearevalidreasonstohavethegrievancesprocessedthroughamachineryoraprocedure. ObjectivesofaGrievanceHandlingProcedure Jackson(2000)laysdowntheobjectivesofa grievancehandling procedureasfollows:  Toenabletheemployeetoairhis/hergrievance.  Toclarifythenatureofthegrievance.  Toinvestigatethereasonsfordissatisfaction.  Toobtain,wherepossible,aspeedyresolutiontotheproblem.  Totakeappropriateactionsandensurethatpromisesarekept.  Toinformtheemployeeofhisorherright to takethegrievanceto thenextstageoftheprocedure,intheeventofanunsuccessfulresolution. TheBenefitsofaGrievanceHandlingProcedure AccordingtoJackson(2000),furtherbenefitsthatwillaccruetoboththeemployerandemployeesare as follows:  Itencouragesemployeestoraiseconcernswithoutfearofreprisal.  Itprovidesafairandspeedymeansofdealingwithcomplaints.  Itpreventsminordisagreementsdevelopingintomoreseriousdisputes.  Itsavesemployerstimeandmoneyassolutionsarefoundforworkplaceproblems. Ithelpstobuildanorganizationalclimate basedonopennessandtrust. ProcessingofGrievance The details of a grievance procedure/machinery may vary from organization to organization. Here, afour-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 themachineryarebrieflydiscussedhere: The level at which grievance occurs: The best opportunity to redress a grievance is to resolve it atthe level at which it occurs. A worker’s grievance should be resolved by his immediate boss, the firstline supervisor. The higher the document rises through the hierarchy, the more difficultit is toresolve. Bypassing the supervisor would erode his authority. When the process moves to a higherstage,theaggrievedemployeeandthesupervisorconcernedmayshifttheirfocustosavefaceby 168 CUIDOLSELFLEARNINGMATERIAL(SLM)

provingtheotherwrong Thesubstantiveaspectofanyofthe grievancesmaythusbe relegatedanddysfunctionalaspectsco me tothe fore thusmakingitmore difficulttosettle theissue. In a unionized concern, the first stage of the procedure usually involves three people: the aggrievedemployee, his immediate boss and the union representative in the shop/ department. It is possible toinvolve the union in laying down the framework of the grievance procedure and thereafter restrainunion involvement in the actual process, at least in the first two stages. The choice depends on the topmanagementattitude and orientationtowardsthe dynamicsofunion-managementrelations. Supervisory roleneeds tobe strengthened,with appropriate trainingin problem- solvingskills,grievancehandlingandcounsellingsothathe candomuchinreducing thenumberofgrievancesthatgetpassedtohigherstages inthemachinery. Stages Participants 4 Conciliation/arbitrati on/adjudication Top Unionpresident/ 3 Management GeneralSecretary 2 Middle UnionOffice- Management bearers Supervisor UnionShopdepartment 1 representative AggrievedEmployee Fig11.1GrievanceProcedure (Adapted from: C. Pettifer, Effective Grievance Administration, California Management Review,12(i),Winter1970,p.18) 169 CUIDOLSELFLEARNINGMATERIAL(SLM)

Unrealistic policies and expectations and lack of commitment for equity and fair play can causeproblems in handling grievances at the lower level. Inadequate delegation of authority may alsoinhabita supervisor’seffectivenessinhandlinggrievancesatthislevel. Intermediate Stage: If the dispute is notredressed atthe supervisor’s level,itwill usually bereferred to the head of the concerned department. It is important that line management assume primeresponsibility for the settlement of a grievance. Any direct involvement by personnel department mayupsetbalanceinline-staffrelations. At the intermediate level, grievance can be settled with or without union involvement. Excessivereliance on supervisorat this stage canjeopardize theinterests of the employee andaffectthecredibilityoftheprocedure. Organization Level: If a grievance is not settled at the intermediate level also, it will be referred tothe top management. Usually, a person of a level not less than General Manager designated for thepurpose will directly handle the issue. By now, the grievance may acquire some political importanceand the top leadership of the union may also step in formally, if the procedure provides for it andinformally, if the procedure prohibits it. At this level it is very difficult to reconcile the divergentinterests. Third Party Mediation: If the grievance has not been settled bi-laterally within the organization, itgoes to a third party for mediation. It could be conciliation, arbitration or adjudication or the mattermay even be referredtoa labor court. At this stage, the parties concernedlose control over the waythegrievanceissettled.Incaseofmediation(conciliationorarbitration)themediatorhasnoauthority to decide, but in case of labor court or an adjudicator, the decision will be binding on theparties,subjecttostatutoryprovisionsforappealtohighercourts. StepsinGrievanceHandlingProcedure At any stage of the grievance machinery, the dispute must be handled by some members of themanagement. In grievance redressal, responsibility lies largely with the management. And, as alreadydiscussed, grievances should be settled promptly at the first stage itself. The following steps willprovide ameasure ofguidance tothemanagerdealingwithgrievances. AcknowledgeDissatisfaction:Managerial/supervisory attitudetogrievancesisimportant.Theyshouldfocus attention on grievances,not turn away from them. Ignorance is notbliss; itis the baneofindustrialconflict.Condescendingattitudeonthepartofsupervisorsandmanagerswouldaggravate theproblem. Define the Problem: Instead of trying to deal with a vague feeling of discontent, the problem shouldbe defined properly. Sometime the wrong complaint is given. By effective listening, one can makesure thatatrue complaintis voiced. Get the Facts: Facts should be separated from fiction. Though grievances result in hurt feelings, theeffort should be to get the facts behind the feelings. There is need for a proper record of eachgrievance. 170 CUIDOLSELFLEARNINGMATERIAL(SLM)

Analyze and Decide: Decisions on each of the grievances will have a precedenteffect. While notimeshouldbelostin dealingwith them,itisnoexcusetobeslip-shodaboutit.Grievancesettlements provide opportunities for managements to correct themselves, and thereby come closer tothe employees. Horse-trading in grievance redressal due to union pressures may temporarily bringunion leadership closer to the management, but it will surely alienate the workforce away from themanagement. Follow up: Decisions taken must be followed up earnestly. They should be promptly communicatedto the employee concerned.If a decision isfavorable to the employee,hisimmediate boss shouldhave theprivilegeofcommunicatingthesame. Someofthecommonpitfallsthatmanagementscommitingrievancehandlingrelateto (a) stopping the search for facts too soon; (b) expressing a management opinion before gathering fullfacts; (c) failing to maintain proper records; (d) arbitrary exercise of executive discretion; and (e)settlingwronggrievances. KeyFeaturesofaGood GrievanceHandlingProcedure Torrington & Hall refer to four key features of a grievance handling procedure, which are discussedbelow. a) Fairness: Fairness is needed not only to be just but also to keep the procedure viable, ifemployees develop the belief that the procedure is only a sham, then its value will be lost, and othermeans sought to deal with the grievances. This also involves following the principles of naturaljustice,asinthecaseofadisciplinaryprocedure. b) Facilities for representation: Representation, e.g., by a shop steward, can be of help to theindividual employee who lacks the confidence or experience to take on the management single- handedly.However,thereisalsotheriskthatthepresenceoftherepresentativeproducesadefensivemanage mentattitude, affected by a number of other issues on which the manager andshopstewardmaybe atloggerheads. c) Procedural steps: Steps should be limited to three. There is no value in having more justbecause there are more levels in the managementhierarchy. This will only lengthen the time takentodealwithmatterandwillsoonbringthe procedureintodisrepute. d) Promptness:Promptnessis neededtoavoidthebitternessand frustrationthatcancomefromdelay. When an employee ‘goes into procedure,’ it is like pulling the communication cord inthetrain. The action is not taken lightly and it is in anticipation of a swift resolution. Furthermore, themanager whose decision is being questioned will have a difficult time until the matter is settled.Essentialpre- requisites ofaGrievance Handling Procedure Every organization should have a systematic grievance procedure in order to redress the grievanceseffectively.Asexplainedabove,unattendedgrievancesmayculminateintheformofviolentconfli cts later on. The grievance procedure, to be sound and effective should possess certain pre-requisites: 171 CUIDOLSELFLEARNINGMATERIAL(SLM)

a) Conformity with statutory provisions: Due consideration must be given to the prevailinglegislationwhiledesigningthe grievancehandlingprocedure. b) Unambiguity:Everyaspectofthegrievancehandlingprocedureshouldbeclearandunambiguous. 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 isassured, etc. The redressing official should also know the limits within which he can take therequiredaction. c) Simplicity: The grievance handling procedure should be simple and short. If the procedure iscomplicated it may discourage employees and they may fail to make use of it in a propermanner. d) Promptness: The grievance of the employee should be promptly handled and necessary actionmust be taken immediately. This is good for both the employee and management, because if thewrong doerispunishedlate,itmayaffectthemorale ofotheremployeesaswell. e) Training: The supervisors and the union representatives should be properly trainedin allaspectsofgrievancehandling beforehandorelseitwillcomplicatetheproblem. f) Followup:ThePersonnelDepartmentshouldkeeptrackoftheeffectivenessandthefunctioning of grievance handling procedure and make necessary changes to improve it fromtime totime. SUMMARY  A grievance refers to any form of discontent of dissatisfaction, arising out of employment,regardingcertainorganisationalissues.  Agrievancemanybefactual,imaginaryordisguised.  If grievances are not identified and redressed properly, they may adversely affect the workers,managersandtheorganisation.  Grievances may be uncovered through observation, gripe boxes, an open-door policy, exitinterviewsandopinion surveys.  A grievance is a form of discontent or dissatisfaction. There are several reasons for this andgrievancehasseveraladverseeffectsonproduction,employerandindividualemployee.  There are several channels for discovering grievances. Machinery for grievance handlingprocedure has been described and a model grievance handling procedure has been provided atthe endoftheunit. KEYWORDS/ABBREVIATIONS  Dissatisfaction:Anythingdisturbsanemployee,whetherornottheunrestisexpressedinwords. 172 CUIDOLSELFLEARNINGMATERIAL(SLM)

 Complaint: A spoken or written dissatisfaction brought to the attention of the supervisor orthe shopsteward  Grievance: A formal complaint or allegation by an employee or group of employees made tounfairtreatmentorviolationofaunioncontract.  Grievance arbitration: Also referred to as grievance mediation, it is a proactive, voluntaryprocess, which utilizes an arbitrator to assist and issue a binding resolution of grievances overthe applicationorinterpretationofa collectivebargainingagreement.  Grievanceprocedure:Theprocessandguidelinestobefollowedbyemployees,managementortheu nionwhenresolvingdifferences orconflicts.  International Labor Organization (ILO): A specialized agency of the United Nations thatdealswithlaborissues.  International representative:An officer of an international union whohas been appointedby the union’s executive board to serve as a liaison between the national or international leveloftheunionandlocals.  StandingOrders:Servicerulesandotheragreedtermsof employmentcertifiedbyanauthorityasperthe provisionsoftheIndustrialEmployment(Standingorders)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 isavailable. (Applicable only tolay-off; in suspension, the employee is not allowed to workuntil departmental enquiry leads to further course of action, spanning a range of possibilitiesfromreinstatementtodismissal.)  Termination Interview: The interview in which an employee is informed of the fact that heorshehas beendismissed. LEARNINGACTIVITY 1. Whatarethemajor determinantsofgrievances? ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… 2. Howcanyoumanagegrievances inorganisationalsettings? ……………………………………………………………………………………………........……… ……………………………………………………………………………………………................ UNITENDQUESTIONS(MCQANDDESCRIPTIVE) A. DescriptiveTypesQuestions 173 1. Whatisagrievance?Outlineitscausesandsymptoms? 2. Describegrievance handlingprocedurebeing followedinyourorganization? CUIDOLSELFLEARNINGMATERIAL(SLM)

3. Stateand explain essentialsofgoodgrievance procedure? 4. Whyshouldorganizationshaveaformalgrievanceprocedure?Explainwithexamples. 5. Discuss the model grievance procedure that is applicable in India. What are the essential pre- requisitesofagrievanceprocedure? 6. Howwouldyoutrytouncover grievances?Justify C.MultipleChoiceQuestions 1. Most formalgrievancesraisedintheworkplacearerelatedto– a. Low pay b. Harassmentandbullyingby managers c. Dislikeofindividualmanagers d. Employeesattemptingtoresist beingmanaged 2. Advantagesofgrievanceshandling procedure– a. Managementcanknowemployees’feelings b. Employeegetsgrievancesventilated c. Keepsacheckonsupervisor’sattitude d. Allofthese 3Howtohandlegrievances? a. Grievanceinwriting/takingtoemployeedirectlyforspeakingtruth/ensureconfid entialityandhandlethe case withintieframe b. Treat each case as important, and obtain grievances in writing / examine company’sposition/identifyviolations/donotholdbacktheremedy,ifthecompany’s wrong+(a)above c. Get all the facts (relevant) about the grievance / examine the personnel record of theaggrievedworker /gather information fromtheunionrepresentativeproperly+(b)above d. Identifygrievance/ previousrecordofthe worker/ companies’rulesand promptredressalofgrievances,ifgenuine. 4. Howtheconflictswithinemployersandemployeescanbesettled orprevented? a. Voluntarymethod b. GovernmentMachinery c. StatutoryMeasures d. Allofthese 5. Whygrievancesshouldberedressed? 174 a. Affectstheindividual CUIDOLSELFLEARNINGMATERIAL(SLM)

b. Affectsthemanagement c. Collectivedisputesconversion d. Allofthese Answers: 1-b,2-d,3-c,4-d,5-d. REFERENCES  Duari,Pravin.(2010). HumanResourceManagement. NewYork:PearsonEducation.  Dessler,G.(2013).HumanResourceManagement.Delhi:Prentice-Hall.  Flippo, Edwin B. (1966). Personnel/Human Resource Management. New Delhi: TataMcGraw Hills.  Haldar, U.K. AndSarkar.(2012).HumanResourceManagement. NewDelhi:Oxford&IBH.  H.J.Bernardin,HumanResourceManagement,TataMcGrawHill,NewDelhi, 2004.  Ivancevich,JM(2008), HumanResourceManagement,TataMcGrawHill.  RaoP.S.(2008),EssentialsofHumanResourceManagementandIndustrialRelations,Text CasesandGames,HimalayaPublication.  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 175 CUIDOLSELFLEARNINGMATERIAL(SLM)

UNIT –12CONTEMPORARYISSUESINHRM Structure Learning ObjectivesIntroducti on GreenHR e-HR EmployeeEmpowermentandEngagementG oldenHandshake Glass CeilingIHRM TalentManagementInternationa l HR practices.Summary KeyWords/Abbreviations LearningActivity Unit EndQuestions(MCQandDescriptive)Refere nces LEARNINGOBJECTIVES Afterstudyingthisunit,youwillbeableto:  StudyGreenHRande-HRM  Explainemployeeempowerment and engagement  DiscussGolden handshakeandGlassceiling  DescribeIHRMandTalentManagementconcepts  AnalyseInternationalHRpractices INTRODUCTION By transformation of economic environment, the information explosion, advances in technology andtheintenselycompetitiveglobalanddomesticmarketshavecreatedenormouspressureonorganisation to change or perish. Against this challenging scenario, by choice or default a new era ofhuman resource management practices and philosophy is emerging and assuming significance inmodern organisations.Thisunitaimsatdiscussingthecontemporary issuesof human resourcemanagementindetailandalso,the InternationalHRMPracticesinIndia. 176 CUIDOLSELFLEARNINGMATERIAL(SLM)

GREENHR GHRM is a new concept and is becoming popular all over the world. It has got different meanings todifferent people. There is no comprehensive definition of GHRM. It refers to making efforts toimprove energy efficiency or reduce the pollution produced byour home,business, and generallivinghabits. The main purpose of going green is to reduce the potential negative impact that energy consumptionandpollutioncanhaveonthe environment. WhatisGreenHRM? Ramachandran defines Green HRM as the integration of environmental management into humanresources management. The term green HRM is mostly used to refer to the contribution of HRMpoliciesandpracticestowardsthe broadercorporate environmentalagenda. It refers to using every employee to support sustainable practices and increase employee awarenessand 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 engagementlevels. Typical green activities are performed to travel requirements through video recruiting or theuse ofonlineandvideointerviews. It involves undertaking environment-friendly HR initiatives resulting in greater efficiencies, lowercosts and better employee engagement and retention, which in turn, help organizations to reduceemployeecarbonfootprintsbythelikesofelectronicfiling,car-sharing,job- sharing,teleconferencing, and virtual interviews, recycling, telecommuting, online training, energy- efficientoffice 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 aninternal culture. Green behaviour is assumed to be instrumental in the implementation of the greenHRMcultureandadoptingformalenvironmentalstrategies. According to Mandip, the practice of green HR should be translated into the HR processes, such asrecruitment, training, compensation, etc. From the definitions stated above, it can be concluded thatGreenHRMneedstheparticipationofalltheorganization’smemberstocreateandkeeptheorganizationgr een. BenefitsofGreen HRM Green HRM involves undertaking environment-friendly HR initiatives resulting in greater efficiency,lowercostsand better employeeengagementand retention,whichinturn,help organizationsto 177 CUIDOLSELFLEARNINGMATERIAL(SLM)