contemporary issues in hrm.final
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CONTEMPORARY ISSUESIN HRM
By
Manish Bhalla
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Grievance Handling
According to Dale S. Beach
• “Grievance is any dissatisfaction or feeling of injustice in connection with
one‟s employment situation that is brought to the notice of management”.
• According to J.M.Jucius “A grievance is any discontent or dissatisfactionwhether expressed or not, whether valid or not, arising out of anythingconnected with the company which an employee thinks, believes or evenfeels to be unfair, unjust or inequitable.
• The Model Grievance Procedure has provided the following definitionof grievance:
“Complaints affecting one or more individual workers in respect of their
wage payments, overtime, leave, transfer, promotions, seniority, workassignment and discharge would constitute grievance. Where the points atdispute are of general applicability or considerable magnitude, they will falloutside the scope of this procedure”.
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Features of Grievance
• Grievance reflects dissatisfaction or discontent experienced by anemployer.
• It is a feeling of injustice to one‟s job by the employer or the management.
• It may be unvoiced/ implied or expressed by an employee.
• It may be written or verbal.
• It may be real or imaginary, valid and legitimated.
• Grievance arises out of something related to employee‟s employment
contract.
• Grievance, if not redressed in time, gives rise to discontent, frustration, poormorale, and ultimately to low productivity.
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Causes or Sources of Grievance
Promotions Nature of job
Amenities Payment
Continuity of service Recovery of dues
Compensation Safety appliances
Disciplinary action Superannuation
Fines Transfer
Increments Victimization
Leave Conditions of work
Medical benefits
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Grievance Handling Procedure
• Timely Action
• Accepting the Grievance
• Identifying the Problem
• Collecting the Facts
• Analysing the cause of the Grievance
• Taking Decisions
• Implementing the Decision
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Model Grievance ProcedureThe National Commission on Labour has suggested a model grievanceprocedure which would ensure the speedy settlement of grievance. Themodel comprises of the five steps a outlined below:
• Convey grievance to the officer designated by management to deal withgrievance.
• If not satisfied or receive no answer within 48 hours then present grievanceto departmental head nominated for the purpose.
• If still not satisfied then can approach the Grievance committee for thesettlement of his or her grievance. The Grievance Committee has to give itsrecommendations in seven days and report the same to the management.The management must communicate the decision to the grievant withinthree days.
• If still not satisfied can make appeal to the management for revision of thedecision taken.
• If not satisfied with management‟s decision, the grievance is referred to avoluntary arbitration within a week after decision taken by the management.
The decision of the arbitrator is final and binding on the parties.
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Industrial Disputes
• In common parlance, dispute means difference or disagreement or strifeover some issues between the parties.
• Since settlement of industrial disputes proceeds as per the legal provisionshence it seems pertinent to study the concept of industrial disputes from alegalistic angle.
• According to Industrial Disputes Act, 1947, the term „industrial dispute‟
means “any dispute or difference between employers and employers orbetween workmen and workmen, which is connected with the employmentor non-employment of the terms of employment and conditions ofemployment of any person.
• In practice, industrial disputes mainly relate to the difference between theworkmen and the employers.
• While discipline and grievance focus on individuals, dispute focus oncollectivity of individuals.
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The following principles judge the nature of an industrial dispute:
1. The dispute must affect a large number of workmen who have a
community of interest and the rights of these workmen must be affected asa class.
2. The dispute must be taken up either by the industry union or by asubstantial number of workmen.
3. The grievance turns from individual complaint into a general complaint.
4. There must be some nexus between the union and the dispute.
5. According to the Industrial Disputes Act, 1947, a workman has a right toraise an industrial dispute with regard to termination, discharge, dismissal,or retrenchment of his or her service, even though no other workman or anytrade union of workman or any trade union of workmen raises it or is a partyto the dispute.
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Forms of Industrial Disputes:
1. Strikes (Suspension or cessation of work by a group of persons
employed in any industry, acting in combination or a concerted refusal.)
2. Lock-outs (The temporary shutting down or closing of a place of businessby the employer.)
3. Gherao (It means to surround. It is a physical blockade of managers byencirclement aimed at preventing the egress and ingress from and to aparticular office or place.)
4. Picketing and Boycott (Picketing is a method to request workers to
withdraw cooperation to the employer. Boycott aims at disrupting the normalfuctioning of the organisation through appeal to co-workers for voluntarywithdrawl of co-operation with the employer.)
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Causes of Industrial Disputes• Economic Causes
– Wages
– Bonus
– Allowances
– Benefits
– Incentives and
– Working Conditions
• Management Practices – Threat of use of coercion
– Unwillingness to recognize a particular trade union
– Unwillingness to talk over the dispute with employees
– Forcing workers to join or refrain from joining trade union
– To discharge or dismiss workers by way of discrimination or victimization
– The benefits offered by management to workers are far from satisfactory
• Trade Union Practices – Multiplicity of unions (Industry wise or area wise)
– Inter-union rivalry
– Non consensus among trade unions on settlements arrived with management
• Legal and Political Factors (Multiple central and state laws & Political
parties divide unions on party lines.)
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Collective Bargaining• It is a process of negotiating between management and workers
represented by their representatives for determining mutually agreed termsand conditions of work which protect the interest of both workers and the
management.
• According to Dale Yoder “Collective bargaining is essentially a process inwhich employees act as a group in seeking to shape conditions andrelationships in their employment.
• Thus collective bargaining can simply be defined as an agreementcollectively arrived at by the representatives of the employees and theemployers.
• Basic objectives of collective bargaining – To foster and maintain cordial and harmonius relations between the employer/management
and the employees.
– To protect the interests of both the employer and the employees.
– To keep the outside, i.e., the government interventions at bay.
– To promote industrial democracy
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Importance of Collective Bargaining
1. It develops better understanding between the employer and theemployees.
2. It promotes industrial democracy.
3. It benefits both-employer and employees.
4. It is adjustable to the changing conditions.
5. It facilitates the speedy implementation of decision arrived at collective
negotiation.
B i i St t i
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Bargaining Strategies• Distributive (It is most common form of bargaining and takes place when labour
and management are in disagreement over the issues in the proposed contract,such as wages, bonus, benefits, work rules, and so on. It involves haggling overthe distribution of surplus. In it, the gains of one party are achieved at the
expense of the other therefore sometimes it is referred to as win-losebargaining.)
• Integrative (The purpose of integrative bargaining is to create a cooperativenegotiating relationship that benefits both parties. In such bargaining, bothlabour and management win or gain or atleast neither party loses. The issues of
bargaining involve job evaluation process, better training programmes, betterworking conditions, etc. This is considered the nest bargaining strategy althoughis not nearly as common.)
• Attitudinal (Such a bargaining involves shaping and reshaping of attitudes topositive and cooperative e.g. hostile to friendly, non-cooperative to cooperative
and untrust to trust. The attitudinal structuring helps achieve „good-faithbargaining.)
• Intraorganisational (In practice, there are different groups in an organisation bydepartment-wise and level-wise. At times different groups may perceive theoutcomes of collective bargaining process differently. Thus, bargaining involvesmanoeuvring to achieve consensus with the workers and management.)
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Talent Management• People are, undoubtedly the best resources of an organization.
• Sourcing the best people from the industry has become the top most priorityof the organizations today.
• In such a competitive scenario, talent management has become the keystrategy to identify and filling the skill gap in a company by recruiting thehigh-worth individuals from the industry.
• It is a never-ending process that starts from targeting people.
• The process regulates the entry and exit of talented people in anorganization.
• To sustain and stay ahead in business, talent management can not beignored.
• In order to understand the concept better, let us discuss the stages included
in talent management process:
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• Understanding the Requirement: It is the preparatory stage and plays acrucial role in success of the whole process. The main objective is todetermine the requirement of talent. The main activities of this stage aredeveloping job description and job specifications.
• Sourcing the Talent: This is the second stage of talent managementprocess that involves targeting the best talent of the industry. Searching forpeople according to the requirement is the main activity.
• Attracting the Talent: it is important to attract the talented people to work
with you as the whole process revolves around this only. After all the mainaim of talent management process is to hire the best people from theindustry.
• Recruiting the Talent: The actual process of hiring starts from here. This is
the stage when people are invited to join the organization.
• Selecting the Talent: This involves meeting with different people havingsame or different qualifications and skill sets as mentioned in jobdescription. Candidates who qualify this round are invited to join theorganization.
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• Training and Development: After recruiting the best people, they aretrained and developed to get the desired output.
• Retention: Certainly, it is the sole purpose of talent management process.Hiring them does not serve the purpose completely. Retention depends onvarious factors such as pay package, job specification, challenges involvedin a job, designation, personal development of an employee, recognition,culture and the fit between job and talent.
• Promotion: No one can work in an organization at the same designationwith same job responsibilities. Job enrichment plays an important role.
• Competency Mapping: Assessing employees‟ skills, development, ability
and competency is the next step. If required, also focus on behaviour,attitude, knowledge and future possibilities of improvement. It gives you abrief idea if the person is fir for promoting further.
• Performance Appraisal: Measuring the actual performance of anemployee is necessary to identify his or her true potential. It is to checkwhether the person can be loaded with extra responsibilities or not.
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• Career Planning: If the individual can handle the work pressure and extraresponsibilities well, the management needs to plan his or her career sothat he or she feels rewarded. It is good to recognize their efforts to retainthem for a longer period of time.
• Succession Planning: Succession planning is all about who will replacewhom in near future. The employee who has given his best to the
organization and has been serving it for a very long time definitely deservesto hold the top position. Management needs to plan about when and howsuccession will take place.
• Exit: The process ends when an individual gets retired or is no more a partof the organization.
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K l d M t
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Knowledge Management• Knowledge Management is about connecting people to people and people to
information to create competitive advantage.
• It is a systematic process of finding, selecting, organizing, distilling, and presentinginformation in a way that improves an employee‟s comprehension in a specific areaof interest.
• It helps an organization to gain insight and understanding from its ownexperiences.
• Knowledge management is first and foremost a management discipline that treatsintellectual capital as a managed asset.
• The primary tools applied in the practice of knowledge management areorganizational dynamics, process engineering, and technology.
• These work together to streamline and enhance the flow of an organization‟s data,information and knowledge and to deliver them to individuals and groups engagedin accomplishing specific tasks.
• The framework of the knowledge management initiative of any organization shouldcater to knowledge needs at all levels--- strategic, technical, and operational.
Kno ledge Management and Approaches
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Knowledge Management and Approaches
Mechanistic Cultural/Behavioural Systematic
Approach It is characterized bythe application of
technology andresources to dobetter.
This approach focuseson innovation and
creativity (the learningorganization) rather thanon leveraging existingexplicit resources.
This approach isrational coupled
with new ways ofthinking.
Assumption Accessibility toinformation is the
key. Reuse ofdocuments, intranetincluding networkingtechnologies,groupware, etc. willmake it work.
Behaviour culture andenvironment need to be
changed and not justtechnology. The role ofprocess is emphasized.
A systematic wayof reviewing the
processes, culturalpatterns, andpractices isneeded.
Assessment Unless „experience‟ is combined in theabove model, itbecomes yet anotherpaper model.
Interplay of culture andorganizational changemay not be measured,cumulative, orreplicable.
It has shownsustained positiveresults.
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Human Resource Information System
• Being key to employee productivity, competitive strength, and corporate
excellence, information is being recognized as fourth organizationalresource.
• In today‟s era of information technology, information is power.
•It is the life-blood of an organisation.
• The effectiveness of human resource management, largely depends uponthe quality of information held by it.
• For this, an information system is required to communicate effectively withthe environment.
• The same gives genesis to the human resource information system (HRIS).
Purpose of HRIS
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Purpose of HRIS
1. To store data and information for each individual employee for readyreference.
2. To provide a basis for decision making in day-to-day personnel issues,(e.g. grant of leave) as also for planning, budgeting, implementing, andmonitoring a host of human resources function.
3. To supply data/returns to government and other public.
Advantages of HRIS
1. Reduction in the cost of stored data in human resource.
2. Higher speed of retrieval and processing of data.
3. Reduction in duplication of efforts leading to reduction in cost.
4. Availability of accurate and timely data about human resources.
5. Better analysis leading to more effective decision making.
6. Improved quality of reports.
7. Better ability to respond to environmental changes.
8. More transparency in the system.
Computerised HRIS
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Computerised HRIS
1. Recruitment Information
2. Personnel Administration Information
3. Manpower Planning Information
4. Training Information
5. Appraisal Information
6. Payroll Information
7. Leave Information
8. Retirals Information9. Tax Information
Limitations of HRIS
1. It can be expensive in terms of money and manpower requirements.2. Its effective application needs large-scale computer literacy among theemployees responsible for maintaining HRIS.
3. Computers cannot replace human being because human interventionswill be always there to improve the existing situation.
4. Absence of continuous up-dating of HRIS makes the information stalewhich is considered as good as no information