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Course Code 19MBA502B
Course Title Human Resource Management
Course Leader Mr. Rajeev Prasad P Email
rajeev.ms.mc_at_msruas.ac.in
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Session Objectives

• At the end of this session, students will be
  able to
• Discuss the concept of Industrial Relations

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Industrial Relations

• Industrial relations
• IR - Objectives
• Employee Relations Process and Approaches
• Employee voice and Grievances
• Causes and effects of Grievances
• Grievance handling Procedure
• Employee health and safety
• Factories Act.

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Industrial Relations-Introduction

• IR is concerned with the relationship between
  management and workers and the role of regulatory
  mechanism in resolving any industrial dispute.
• Involves handling the paywork bargain, dealing
  with employment practices, terms and conditions
  of employment, issues arising from employment,
  and communicating with employees
• Employers deal with employees through their trade
  unions or individually

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Industrial Relations-Introduction Contd.

• Industry/Employee relations encompasses
  relationships between managements and trade
  unions involving
• Collective agreements
• Collective bargaining
• Disputes resolution and dealing with issues
  concerning the employment relationship
• The working environment
• Workers participation in management
• Unfair labour practices

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Industrial Relations-Objectives

• To safeguard the interest of labour and
  management by securing the highest level of
  mutual understanding and good-will
• To avoid industrial conflict or strife and
  develop harmonious relations
• To raise productivity to a higher level
• Lessening the tendency to high turnover and
  frequency absenteeism

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Industrial Relations-Objectives

• To improve the economic conditions of workers
• To establish and promote the growth of an
  industrial democracy by sharing profits with
  workers and involving them in managerial
  decisions
• To provide reasonable wages, improved living and
  working conditions, and fringe benefits
• Socialisation of industries

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Scope of Industrial Relations

• In the narrow sense the relationship that
  emerges out of the day to day association of the
  management and the labour
• In its wider sense the relationship between an
  employee and an employer in the course of the
  running of an industry and transgress to the
  areas of quality control, marketing, price
  fixation and disposition of profits
• The scope or industrial relations is quite vast

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Parties to Employee Relations

• Parties to employee relations are
• Employers/ Management representative / employer
  associations
• Employees/ the parties who act on their behalf -
  trade unions
• The third-party role played by the state agencies

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Parties of IR
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Employee Relations Processes

• Consist of the approaches, methods and procedures
  adopted by employers to deal with employees
  either collectively through their trade unions or
  individually
• Dealings between management and trade unions
  involving
• Collective agreements
• Collective bargaining
• Disputes resolution and handling issues
  concerning the employment relationship and the
  working environment

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Approaches to Employee Relations

1. Adversarial the organization decides what it
   wants to do, and employees are expected to fit
   in. Employees only exercise power by refusing to
   cooperate
2. Traditional a good day-to-day working
   relationship, but management proposes and the
   workforce reacts through its elected
   representatives

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Approaches to Employee Relations Contd.

• Partnership the organization involves employees
  in the drawing up and execution of organization
  policies, but retains the right to manage
• Power sharing employees are involved in both
  day-to-day and strategic decision making.

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Employee Voice - Grievances
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Grievance

• Grievance is a sign of an employees discontent
  with job and its value
• Grievance may be any genuine or imaginary feeling
  of dissatisfaction or injustice
• Related to job and its nature, about the
  management policies and procedures
• Grievance are bound to happen in a workplace and
  a proper redressal policy is essential

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Grievance Contd.

• Grievance may arise due to factors such as
• Violation of managements responsibility such as
  poor working conditions
• Violation of companys rules and regulations
• Violation of labour laws
• Violation of natural rules of justice such as
  unfair treatment in promotion and wages

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Grievance Contd.

• Grievance must be expressed by the employee and
  brought to the notice of the management/
  organisation
• If not resolved, grievances take the form of
  collective disputes
• Lower the morale and efficiency of the employees
• Unattended grievances result in frustration,
  dissatisfaction, low productivity, lack of
  interest in work, absenteeism, etc

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Grievance Contd.

• Grievance arises when employees expectations are
  not fulfilled from the organization resulting in
  a feeling of discontentment and dissatisfaction
• This dissatisfaction is due to employment issues
  and not from personal issues

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Grievance Contd.

• A grievance may take any one of the following
  forms
• Factual
• Imaginary
• Disguised

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Grievance Contd.

• Factual
• When legitimate needs of the employees remain
  unfulfilled, e.g. wage hike has been agreed but
  not implemented citing various reasons
• Imaginary
• When an employees dissatisfaction is not because
  of any valid reason but because of a wrong
  perception, wrong attitude or wrong information
  he/ she has gathered

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Grievance Contd.

• Disguised
• An employee may have dissatisfaction for reasons
  that are unknown to himself/herself if he/she is
  under pressure from family, friends, relatives,
  neighbours for which he/she may come to workplace
  with heavy heart

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Causes of Grievance
Economic
Supervision
Work Environment
Causes of Grievance
Miscellaneous
Work group
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Causes of Grievance

• Economic Wage fixation, over time bonus, wage
  revision etc. Employees feel that they are paid
  less compared to others
• Work environment Poor physical conditions of
  workplace, tight production norms, defective
  tools and equipment, poor quality of materials,
  unfair rules, lack of recognitions, etc.
• Supervision Relates to the attitudes of the
  supervisor towards the employee such as perceived
  notion of bias, favoritism, nepotism, caste
  affiliations, regional feelings, etc.

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Causes of Grievance Contd.

• Work group employee is unable to adjust with
  his/her colleagues suffers from feelings of
  neglect, humiliations
• Miscellaneous Issues related to certain
  violations with respect to promotions, safety
  methods, transfer, disciplinary rules, fines,
  granting leave, medical facilities, etc.

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Effects of Grievance

• Loss of interest in work
• Consequent lack of morale and commitment
• Poor quality of production and Low productivity
• Increase in wastage and costs
• Increase in employee turnover
• Increase in absenteeism
• Increase in the incidence of accidents
• Indiscipline
• Unrest

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Discovery of Grievances

• Direct observation
• Grievance Procedure
• Gripe Boxes
• Open Door Policy
• Exit Interview

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Grievance Handling-Guidelines

• Treat each case as important and ensure proper
  documentation
• Talk to employee directly, encourage to speak the
  truth and give a patient hearing
• Discuss in a private place and ensure
  confidentially
• Handle each case within a time-frame

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Grievance Handling-Guidelines Contd.

• Examine company provisions in each case and
  identify violations, if any,
• Do not hold back the remedy if the company is
  wrong. Inform your supervisor about all
  grievances
• Get all relevant facts about the grievance.
  Examine the personal records of the aggrieved
  worker. See whether any witnesses are available

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Grievance Handling-Guidelines Contd.

• Visit the work area The idea is to find where
  things have gone wrong and who is at fault
• Gather information from the union
  representative/s
• Control your emotions, your remarks and behavior

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Essentials of Grievance Procedure

• Legally Sustainable
• Grievance procedure should conform with the
  existing laws
• The procedure cannot violate any of the rights of
  the employees guaranteed by the law
• Mutually acceptable
• Grievance procedure must enjoy the confidence of
  all the relevant parties - Management and the
  unions
• Procedure must ensure equity, justice and openness

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Essentials of Grievance Procedure Contd.

• Easily Understandable
• The grievance procedure must be reasonably
  simple and easily understandable
• Known to all the employee of the organization
• If someone has some grievance, whom to contact
• Highly Flexible
• The grievance procedure should be flexible enough
  to respond to the reported grievance quickly
• The grievance procedure should be simple

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Essentials of Grievance Procedure Contd.

• Sufficiently Knowledgeable
• The Managers, supervisors, union leaders and
  other dealing with employee grievance must be
  well-trained in the grievance handling procedure
  

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Grievance Redressal Model
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Collective Bargaining

• Collective bargaining involves employers and
  unions
• Related to terms and conditions of employment to
  resolve disputes, grievances and disciplinary
  matters
• Result in collective agreements, which are formal
  agreements between management and trade unions

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Collective Bargaining Contd.

• Main features of Collective bargaining
• Parties at least two sides
• An agreed procedure whereby the parties relate to
  each other and the negotiation of framework
  agreements and consultation
• Outcomes a collective agreement
• The existence of sanctions designed to change the
  attitude or position of the other party

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Collective Bargaining Contd.

• Dispute resolution
• The aim is to reach agreement, preferably to the
  satisfaction of both parties
• Grievance or negotiating procedures provide for
  various stages of failure to agree
• The processes of dispute resolution are
  conciliation, arbitration and mediation

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Collective Bargaining Contd.
Dispute resolution- Conciliation

• It is the process of reconciling disagreeing
  parties
• Carried out by a third party, who acts in effect
  as a go-between, attempting to get the employer
  and trade union representatives to agree on terms
• Conciliators can only help the parties to come to
  an agreement and do not make recommendations

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Collective Bargaining Contd.
Dispute resolution- Arbitration

• The process of settling disputes by a third party
• The arbitrator review and discuss the negotiating
  stances of the disagreeing parties and make a
  recommendation
• Arbitration is binding on both parties
• The arbitrator is impartial

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Collective Bargaining Contd.
Dispute resolution- Mediation

• A third party helps by making recommendations
• Not bound to accept
• The employer retains control of the situation by
  being free to reject or accept the
  recommendations
• It is cheap and informal relative to an
  employment tribunal
• Offers a quick resolution to problems with
  confidentiality

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Collective Bargaining Contd.

• Requires negotiating and bargaining skills
• Negotiation takes place when two parties meet to
  reach an agreement-such as pay claim
• Negotiation can be
• Convergent when both parties are equally keen to
  reach a win-win agreement
• Divergent when one or both of the parties aim to
  win as much as they can from the other while
  giving away as little as possible

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Negotiating and Bargaining

• Management represents the employers interests
• Employee representatives represent the employees
  interests
• Both sides are of equal status
• Negotiations take place in an atmosphere of
  uncertainty
• Neither side knows how strong the other sides
  bargaining position is or what it really wants
  and will be prepared to accept

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Negotiating and Bargaining

• Stages of Negotiations
• Initial/ Preparation stage
• Opening of Negotiation stage
• Bargaining stage
• Closing stage

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1. Initial/ Preparation Stage

• Unions define three things
• the target they would like to achieve
• the minimum they will accept
• the opening claim they believe will most likely
  lead to achieving the target
• Employers define three related things
• the target settlement they would like to achieve
• the maximum they would be prepared to concede
• the opening offer that will provide them with
  sufficient room to maneuver

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2. Opening Stage

• Open realistically and move moderately
• Challenge the other sides position as it stands
  do not destroy their ability to move
• Observe behaviour, ask questions and listen
  attentively in order to assess the other sides
  strengths and weaknesses, their tactics and the
  extent to which they may be bluffing
• Make no concessions at this stage

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3. Bargaining Stage

• The gap is narrowed between the initial positions
• There are attempts to persuade each other that
  their case is strong enough to force the other
  side to close at a less advantageous point than
  they had planned

4. Closing Stage

• Employers make a final offer which they can
  fulfill

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Negotiating and Bargaining Skills

• Analytical ability the capacity to assess the
  factors that affect the negotiating stance and
  tactics of both parties
• Empathy the ability to put oneself in the other
  partys shoes
• Interactive skills the ability to relate well
  with other people

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Negotiating and Bargaining Skills

• Communicating skills the ability to convey
  information and arguments clearly, positively and
  logically
• Keeping cards close to the chest not giving
  away what you really want or are prepared to
  concede until you are ready to do

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Employee Voice

• Definition Processes and structures which
  enable/empower employees, directly and
  indirectly, to contribute to decision-making in
  the firm
• Employee voice also seen as the ability of
  employees to influence the actions of the
  employer
• Opportunities for employees to register
  discontent, express complaints or grievances and
  modify the power of management

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Employee Voice - Meaning

• Expression of individual dissatisfaction raised
  with line manager or through grievance procedure
• Expression of collective dissatisfaction raised
  by trade unions through collective bargaining or
  industrial action

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Employee Voice Meaning

• Contribution to management decision making
  through upward problem solving, suggestion
  schemes and attitude surveys
• Demonstration of mutuality through partnership
  agreements, joint consultative committees and
  works councils

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Employee Voice- Forms

• Participation refers to arrangements that give
  workers some influence over organizational and
  workplace decisions
• Involvement management allows employees to
  discuss with them issues that affect them. These
  are management initiatives designed to further
  the flow of communication at work for enhancing
  the organizational commitment of employees

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Employee Voice-Framework
Shared agenda
Employee involvement
Partnership agreements
Direct Involvement
Indirect Involvement
Traditional collective bargaining
Grievance procedures
Contested agenda
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Employee Voice-Levels
Management joins with employees in making
decisions
Management consults with employees before making
final decision
Management communicates decisions to employees
Management decides unilaterally
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Employee Communications

• Vital for any change management programme
• Bad/No communication may lead to resistance to
  change
• Effective communication
• Generates trust
• Results in enhanced commitment of employees if
  employees are aware of achievement of their firms
  and benefits they may get

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Employee Communications Contd.

• Management/ Mangers need to communicate
• Terms and conditions of employment
• What they are expected to do
• Learning and development activities
• Proposed changes to conditions of employment
• Working arrangement and requirements
• HR processes contingent pay, working methods,
  Technologies, products and services or
  organization
• Mergers and acquisitions

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Employee Communications Contd.

• Employees need to communicate their comments and
  reactions to what is proposed will happen or what
  is actually happening in matters that affect them
• Pay and other terms of employment
• Working conditions
• Worklife balance
• Equal opportunity
• Job security
• Health and safety
• Learning and development programmes

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Employee Communications Contd.

• Characteristics of effective communication
• Clear, easily understood and Concise
• Relevant, local and timely information presented
  systematically on a regular basis
• Empathy by management appreciating the concerns
  of employees and what they want and need to hear
• Possible reactions to proposed changes are
  assessed and anticipated in the communication

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Communication Methods

• Individual face-to-face communication
• Team briefing
• Consultative committees
• Notice boards
• Speak-up programmes
• Intranet
• Magazines
• Newsletters and bulletins

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Factories Act 1948
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• Factory is defined in section 2(m) of the Act.
  It means any
• premises including the precincts thereof-
• Whereon 10 or more workers are working, or were
  working on any day of the preceding 12 months,
  and in any part of which a manufacturing process
  is being carried on with the aid of power, or is
  ordinarily so carried on or
• Whereon 20 or more workers are working, or were
  working on any day of the preceding 12 months,
  and in any part of which a manufacturing process
  is being carried on without the aid of power, or
  is ordinarily so carried on

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The main objective of Factories Act, 1948 is to
ensure adequate safety measures and to promote
the health and safety and welfare of the workers
employed in factories. The act also makes
provisions regarding employment of women and
young persons (including children
adolescents), annual leave with wages etc.
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PROVISIONS REGARDING HEALTH

1. Cleanliness
2. Disposal of Wastes Effluents
3. Ventilations Temperature
4. Dust Fumes
5. Artificial Humidification
6. Overcrowding
7. Lighting
8. Drinking Water
9. Latrines Urinals
10. Spittoons

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PROVISIONS REGARDING SAFETY

1. Fencing of Machinery
2. Work on or near Machinery in motion
3. Employment of Young Persons on Dangerous Machines
4. Striking Gear and Devices for cutting off power
5. Self Acting Machines
6. Casing of New Machinery
7. Prohibition of Employment of Women Children
   near Cotton openers
8. Hoists, lifts, Lifting Machines and others
9. Revolving Machinery
10. Pressure Plant

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1. Pits, Sumps, Opening in Floors and others
2. Excessive Weights
3. Protection of Eyes\precautions against Dangerous
   Fumes, Gases others
4. Precautions Regarding use of portable electric
   light
5. Explosive or Inflammable Dust, Gas
6. Precautions in case of fire
7. Specifications of Defective Parts or Tests of
   Stability
8. Safety of Buildings and machines
9. Safety officers

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Summary

• Industrial relations is concerned with managing
  and maintaining the employment relationship
• Its primary objective is to safeguard the
  interest of labor and management by securing the
  highest level of mutual understanding and
  good-will

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Summary Contd.

• Parties to employee relations are
• Employers/ Management representative / employer
  associations
• Employees, the parties who act on their behalf -
  trade unions
• The third-party role played by the state agencies

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Summary Contd.

• The processes of dispute resolution are
  conciliation, arbitration and mediation
• Stages of negotiations are Initial/ Preparation
  stage, Opening of Negotiation stage, Bargaining
  stage, and Closing stage

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Summary Contd.

• Employee voice is the processes and structures
  which enable/empower employees, directly and
  indirectly, to contribute to decision-making in
  the firm
• Employee communication is vital for any change
  management program
• Employees need to communicate their comments and
  reactions to what is proposed will happen or what
  is actually happening in matters that affect them