hrm retention and grievance

8/6/2019 HRM Retention and Grievance

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Retention Management

1Dr. S. David, I.M.S


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Types of Employee Turnover - Voluntary

Employee Initiated

Try to Prevent:High-Value Employees

High performance

Strong KSAOs

Valued intellectualcapital

High promotion

potential High training

investment

High experience

Difficult to find

replacement

Do not Prevent:Low-Value Employees

Low performance

Weak KSAOs

Little intellectualcapital

Low promotion

potential Low training

investment

Low experience

Easy to find

replacement

No attempt to Prevent:Regardless of Value

Retirement

Dual career

New career

Health

Child care or

pregnancy

Elder care

Return to school

Leave country

Take a break

Avoidable(could prevent) Unavoidable(could not prevent)



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Types of Employee Turnover -

Involuntary -- Organization Initiated

Permanent layoff

Temporary layoff

Site or plant closing,relocation

Redundancy due tomerger or acquisition

Downsizing

Discipline

Poor performance

Discharge



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Causes of Voluntary Turnover

Quit

Alternatives

Internal: New job possibilities

External: Job offers+

Desirability of LeavingLow job satisfaction

Shocks to employee

Personal (nonjob) reasons+

Ease of LeavingFavorable labor market conditions

General, transferable KSAOs

Low cost of leaving

+

Intentionto Quit

+



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Guidelines for Increasing Job Satisfaction

and Retention

Extrinsic rewards

Rewards must be

meaningful and unique

Rewards must matchindividual preferences

Link rewards to retention

behaviors

Link rewards to

performance

Intrinsic rewards

Assign employees to jobs

that meet their needs for

work characteristics Provide clear

communication with

employees

Design fair reward

allocation systems

Ensure supervisors

provide a positive

environment



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Ease of Leaving

Twopoints of attack

Provide organization-specific training

Should organization invest in training to provide general

or organization-specific KSAOs? Combine training strategy with a selection strategy

focused on assessing and selecting general KSAOs

Increase cost of leaving by providing

Above-market pay and benefits

Deferred compensation

Retention bonuses

Desirable location of companys facilities



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Alternatives

Approaches to make internal alternatives moredesirable than outside alternatives Internal staffing

Encourage employees to seek internal job opportunities Provide attractive internal options outside of traditional

internal staffing system

Responding to external job offers entails developing

appropriate policies Decide whether to provide counteroffers or not

Determine types of employees to provide counteroffers

Decide who will develop counteroffer and nature ofapproval process



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Retention Initiatives:

Discharge Performance management

Performance Management Process

Manager training and rewards

Progressive discipline

Five requirements of a progressive discipline system

Notice

Consequence

Equal Treatment

Full Investigation

Right of Appeal



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Performance Management Process

Organization Strategy

Work-Unit Plans

(1) Performance Planning

Goals

Competencies

(2) Performance Execution

ResourcesCoachingFeedback

(3) Performance Appraisal

Goal attainmentCompetency ratingsWritten comments

Feedback

(4) Decisions

PayTraining/career plansPerformance problems

Retention



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Employee Benefits viewpoint

Employee Benefits

Insurance Retirement

DefinedContribution

DefinedBenefit

Life Accident Mediclaim LeaveEncashment

Gratuity

Superannuation



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Gratuity Defined Benefit

For whom? Engaged in Factories, Mines, Plantations, Railways, Shops

and establishments notified by Government

In service for 5 successive years

What benefit? 15 days wages for each year of service

Maximum limit Rs 3,50,000/ to 5,00,000/-

7 days wages per season for seasonal occupation

How Funded? Can be funded our unfunded.

Special tax concessions if funded through a trust or insurancecompany



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Superannuation Defined Contribution/

benefit

For whom?

Non-mandatory, defined by company policy

What benefit?

Can be defined benefit(certain formula of last drawn salary)/defined contribution(certain %age of salary every month

contributed to a fund)

Can be different for different grades

How Funded?

Can be funded our unfunded.

Special tax concessions if funded through a trust or

insurance company



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Superannuation Defined Contribution/

benefit

For whom?

Non-mandatory, defined by company policy

What benefit?

Can be defined benefit(certain formula of last drawn salary)/defined contribution(certain %age of salary every month

contributed to a fund)

Can be different for different grades

How Funded?

Can be funded our unfunded.

Special tax concessions if funded through a trust or

insurance company



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Grievance Management

Dr. S. David, I.M.S 16


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GrievanceAccording to Michael Jucius, A grievance can be any discontent or

dissatisfaction, whether expressed or not, whether valid or not, andarising out of anything connected with the company that an employeethinks, believes, or even feels as unfair, unjust, or inequitable.

A grievance means any discontentment or dissatisfaction in an employeearising out of anything related to the enterprise where he is working. It

may not be expressed and even may not be valid.It arises when an employee feels that something has happened or is going to

happen which is unfair, unjust or inequitable. Thus, a grievance representsa situation in which an employee feels that something unfavorable to himhas happened or is going to happen. In an industrial enterprise, an

employee may have grievance because of long hours of work, non-fulfillment of terms of service by the management, unfair treatment inpromotion, poor working facilities, etc.



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Nature of GrievanceGrievances are symptoms of conflicts in the enterprise. Just like smoke

could mean fire, similarly grievances could lead to serious problem ifit is not addressed immediately! So they should be handled verypromptly and efficiently.

While dealing with grievances of subordinates, it is necessary to keep inmind the following points:

A grievance may or may not be real.

Grievance may arise out of not one cause but multifarious causes.

Every individual does not give expression to his grievances.



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Forms of GrievancesA grievance may take any of the following forms:

Factual: When an employee is dissatisfied with his job, for genuine or factual reasons like a

breach of terms of employment or any other reasons that are clearly attributed to themanagement, he is said to have a factual grievance. Thus, factual grievances arise whenthe legitimate needs are unfulfilled. The problem that he has is real and not virtual

Imaginary: When an employees grievance or dissatisfaction is not because of any factualor valid reason but because of wrong perception, wrong attitude or wrong information hehas. Such a grievance is called an imaginary grievance. Though it is not the fault of

management, the responsibility of dealing with it still rests with the management. So theproblem is not real. It is in the mind or just a feeling towards someone or something. So becareful your grievances could be very much imaginary!

Disguised: An employee may have dissatisfaction for reasons that are unknown to himself.This may be because of pressures and frustrations that an employee is feeling from other

sources like his personal life. I am sure you will agree that if you have fought at home andcome to the institute, you cannot concentrate in the class. Similarly if you have had a badday in the institute, that will reflect in the mood at home. We are all humans and aresensitive to the environment that we operate in!



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Identifying Grievances Exit interview: Employees usually quit organizations due to dissatisfaction or better prospects

elsewhere. Exit interviews, if conducted carefully, can provide important information aboutemployees grievances. This can help the management to gather feedback and to genuinely

incorporate feedback. The management should carefully act upon the information drawn fromsuch employees .It should be careful that the discontentment is reduced so that no moreemployees quit the organization because of similar reasons.

Gripe Boxes: These are boxes in which the employees can drop their anonymous complaints.They are different from the suggestion boxes in which employees drop their named suggestionwith an intention to receive rewards It is normally said that if you want to progress in life, youshould be close to critics. These gripe boxes can perform the role of critics for the organisation.

The management should carefully act upon the information thus gathered. Now I dont want tosound repetitive by saying that the internal customers of an organisation should be satisfied ifthe external customers are to be kept happy.

Opinion Survey: The management can be proactive by conducting group meetings, periodicalinterviews with employees, collective bargaining sessions etc. through which one can getinformation about employees dissatisfaction before it turns into a grievance.

Open-door Policy. Some organisation extend a general invitation to their employees to

informally drop in the managers room any time and talk over their grievances. This can be veryeffective because it ca n nip the evil in the bud. That is it can take care of the problem before itgets out of hand. In fact the management should hold formal and informal get together with theemployees. The management should also remember that the employees might just need apatient hearing at times. They need blow off the steam as we hear it more commonly.



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Grievances Classification

(1) Grievances resulting from working conditions Improper matching of the worker with the job. Changes in schedules or procedures. Non-availability of proper tools, machines and equipment for doing the

job. Unreasonably high production standards. Poor working conditions. Bad employer employee relationship, etc.

(2) Grievances resulting from management policy

Wage payment and job rates. Leave. Overtime.

Seniority and Promotional. Transfer. Disciplinary action. Lack of employee development plan. Lack of role clarity.



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Grievances Classification

(3) Grievances resulting from personalmaladjustment

(i) Over ambition.

(ii) Excessive self-esteem or what we better know asego.

(iii) Impractical attitude to life etc.



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Effects of Grievances: Frustration

Alienation

De-motivation

Slackness

Low Productivity

Increase in Wastage & Costs

Absenteeism

In discipline

Labour unrest



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Establishing a Grievance

Procedure

A grievance should be dealt with in the first instance at the lowest level: that is, an employeeshould raise his grievance with his immediate superior. It may be simple to settle it on thespot and that will be the end of it. Even if it cannot be settled at that level, the mans superiorwill know what is happening. This is necessary not only to maintain his authority, but also toprevent him from being aggrieved, as he will certainly be, if he is by-passed and hears of thecomplaint from his own superior.

It must be made clear to the employee what line of appeal is available. If he cannot getsatisfaction from his immediate superior, he should know the next higher authority to whichhe can go.

Since delay causes frustration and tempers may rise and rumors spread around the work, it isessential that grievances should be dealt with speedily. As it is said that a stitch in time savesnine, similarly the problems of the employees should be taken care of by the managementleast it should become a major for the management.

The grievance procedure should be set up with the participation of the employees and it

should be applicable to all in the organisation. The policies and rules regarding grievancesshould be laid down after taking inputs from the employees and it should be uniformlyapplicable to all in the organisation. It should be agreed that there would be no recourse tothe official machinery of conciliation unless the procedure has been carried out and there isstill dissatisfaction, and moreover, there must be no direct action on either side, which mightprejudice the case or raise tempers while the grievance is being investigated.



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Guidelines for Effective

Grievance Handling The complaint should be given a patient hearing by his superior. He should be allowed to

express himself completely. The management should be empathetic.

The superior should try to get at the root of the problem. It should be remembered thatsymptoms are not the problems. It should also be noted that if there are symptoms, there

would be a problem as well.

The management must show it anxiety to remove the grievances of the workers. Theworkers should feel that the management is genuinely interested in solving its problems.

If the grievances are real and their causes located, attempts should be made to remove thecauses.

If the grievances are imaginary or unfounded, attempts should be made to convince theworkers.

Every grievance must be handled within the reasonable time limit. I am sure you will agreewith this. Imagine you have a genuine problem and you share it with the authorities. Youwill also expect immediate action taken to take care of your problem.



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Guidelines for Effective

Grievance Handling All grievances should be put into writing. Some proofs required

as well.

Relevant facts about the grievance must be gathered. Themanagement should not haste!

Decision taken to redress the grievance of the worker must becommunicated to him.

Follow up action should be taken to know the response of theforced employee. This is to make sure that he is happy or not! Atthe end of the day the satisfaction of the aggrieved party isnecessary.



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ESSENTIALS OF A GRIEVANCE PROCEDURE

A grievance procedure should incorporate the following features:

1. Conformity with existing legislation: The procedure should be designedin conformity with the existing statutory provisions. Where practicable, theprocedure can make use of such machinery as the law might have alreadyprovided for.

2. Acceptability: Everybody must accept the grievance procedure. In orderto be generally acceptable, it must ensure the following:

A sense of fair-play and justice to the worker, Reasonable exercise of authority to the manager, and

Adequate participation of the union.

3. Simplicity: The following points should be noted in this regard:

The procedure should be simple enough to be understood. The steps should be as few as possible.

Channels for handling grievances should be carefully developed.

Employees must know the authorities to be contacted at various levels.

Information about the procedure should be thoroughly disseminated among allemployees through pictures, charts, diagrams, etc.



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ESSENTIALS OF A GRIEVANCE PROCEDURE

4. Promptness: Speedy settlement of a grievance is the cornerstone of a soundpersonnel policy. It should be remembered that justice delayed is justice denied. The

procedure should aim at a rapid disposal of the grievance. This can be achieved byincorporating the following feature in the procedure: As far as possible, grievances should be settled at the lowest level No matter should ordinarily be taken up at more than two levels, i.e. normally there should

be only one appeal. Different types of grievances may be referred to appropriate authorities.

Time limit should be placed at each step and it should be rigidly followed at each level. 5. Training: In order to ensure effective working of the grievance procedure, it is

necessary that supervisors and the union representatives should be given training inworking of the grievance procedure. All the policies should be conveyed to theconcerned parties.

6. Follow-up: The personnel department should review the working of the grievanceprocedure periodically and necessary changes should be introduced to make it moreeffective. This is generally ignored by the organizations. A regular follow up of thesystem increase the faith of the people in the system. Therefore it is necessary thatthe grievance procedure should be reviewed whenever it is so required.

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