Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2

Q.1) Explain the approaches for management of overseas branches.Ans:-

This is the matter of the overseas department to manage foreign branches of the company. Today many large companies have overseas branches and subsidiaries across countries which help tackle new markets and find new opportunities for business development. The function of Foreign branches management commits the overseas department to fulfill the following sub-functions:

Controlling subsidiaries' activities Providing assistance and help for their development and expandability Managing finance flows and monitoring subsidiaries revenues, depending on the level of

provided authorities

Software for the overseas department workflow managementVIP Task Manager is a Windows operated task management system that allows to specify and control the tasks, procedural steps, operations and activities of the overseas department.VIP Task Manager provides solutions for creating customized workflow types to meet specific demands of the departmental workflow. Process-oriented and task-oriented approaches realized in VIP Task Manager allow the staff members to be focused on particular jobs, documents and shipment data. In general, the workflow management software brings the following advantages for the overseas department management:

Customizable workflow types to create management solutions and meet business demands Permissions to grant/restrict employee access to the department database Common work environment among the subsidiaries and the department Storing tasks and documents in secured and centralized database file Improved communications between the employees Reports on task statuses and performance analysis

Planning tasks to maintain overseas branches and representative officesOverseas department coordinates and streamlines activities of the foreign branches and representative offices of the company, providing a centralized maintenance and advice. The function of foreign branches management ensures consistency in the company's international activities, management of financial flows and maintenance of overseas corporate policy and its execution. The foreign branches coordinator is responsible for controlling and assessing work of overseas subsidiaries and offices. His main tasks are to conduct the review activities of each foreign branch. An example of these tasks is shown below:

monitor tasks and assess productivity of each employee in the foreign division oversee local projects and check schedules evaluate compliance with corporate policies and procedures review financial statement and assess the adequacy of the financial condition identify opportunities for workflow improvement in the foreign branches

This example of core tasks of the foreign branches coordinator can be effectively planned and performed by using VIP Task Manager. The branches coordinator can use Calendar view to create and schedule to-do lists that help plan activities of the overseas divisions. For example, in the task group 'Overseas projects' he can create the task checklist that allows step by step planning and monitoring of the projects of overseas branches. Task reminder will help keep the task planning on schedule. Calendar view displays the tasks in daily, weekly and monthly modes, making it easier to plan short-term (one week or one month) and long-term (quarter or even year) projects.Tracking foreign projects The head office of the company needs to be sure that overseas subsidiaries do their jobs in compliance with corporate policy and established plans. The first and primary task of the foreign branches coordinator is to monitor and track projects and tasks of the employees in the foreign branches. Task

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2tracking and project monitoring is much easier by using VIP Task Manager. The software allows to track several overseas projects at one time, as it stores all tasks of the foreign divisions in common database file which is accessible by the employees in any subsidiary. The branches coordinator can connect to the overseas branches database through Internet connection and track all ongoing activities in real-time mode. The Filter panel makes task and project tracking easier. For example, to track projects of European division of the company, the branches coordinator can apply the filter by the folder 'European division' in Task Tree view. Then, all European projects will be displayed in Task Tree view. If the foreign branches coordinator needs to see only ongoing tasks in the projects, he can apply the filter by status 'In Progress'. The Filter panel also allows to filter tasks by such parameters as Assignment, Priority, Time Left, Dated Completed, and other. For better usability the branches coordinator can save filter settings to profiles, for example 'All ongoing foreign projects' profile, and raise it any time.Measuring performance and getting reports Performance measurement and task reporting are the ways to determine whether an overseas project has been successfully completed. To measure performance, the foreign branches coordinator can use special indicators (so called KPI - key performance indicators) and then build a summary report that will include the used KPI. In VIP Task Manager such functionality is available. The foreign branches coordinator can use Custom Field feature to build and apply key performance indicators per task and project. The software allows to sum up the indicators and define min/max/average values. For example, to define average costs per task in the project of European division, the foreign branches coordinator can create the custom field 'Costs' in which the division's employees will enter real costs per task as far as the project runs. At the end of the project the foreign branches coordinator can calculate the average project costs. The average value will be displayed on the level of the task group 'European division' (as shown on screen shot). To include this KPI in a short status report, the foreign branches coordinator can use Report Builder in VIP Task Manager. This reporting tool allows to create HTML, text, visual and Excel format reports.

Q.2) what is Employee participation? Give examples. Ans:-Employee participation is the process whereby employees are involved in decision making processes, rather than simply acting on orders. Employee participation is part of a process of empowerment in the workplace.

Empowerment involves decentralising power within the organisation to individual decision makers further down the line. Team working is a key part of the empowerment process. Team members are encouraged to make decisions for themselves in line with guidelines and frameworks established in self managing teams.

Employee participation is in part a response to the quality movement within organisations. Individual employees are encouraged to take responsibility for quality in terms of carrying out activities, which meet the requirements of their customers. The internal customer is someone within the organisation that receives the 'product of service' provided by their 'supplier' within the organisation. External customers are buyers and users outside of the organisation. Employee participation is also part of the move towards human resource development in modern organisations. Employees are trusted to make decisions for themselves and the organisation. This is a key motivational tool.

Employee participation is also referred to as employee involvement (EI)

Examples of employee participation include:

i. Project teams or quality circles in which employees work on projects or tasks with considerable responsibility being delegated to the team.

ii. Suggestion schemes - where employees are given channels whereby they can suggest new ideas to

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2managers within the organisation. Often they will receive rewards for making appropriate suggestions.

iii. Consultation exercises and meetings whereby employees are encouraged to share ideas.

iv. Delegation of responsibility within the organisation. In modern organisations ground level employees have to be given considerable responsibility because they are dealing with customers on a day-to-day basis often in novel situations. Such employees need to be trusted to make decisions for themselves.

v. Multi-channel decision making processes. In such situations decisions are not only made in a downward direction, they also result from communications upwards, sideways, and in many other directions within the organisation.

Q.3 Write note an organizational justiceAns:-

Organizational justiceThe term organizational justice was coined by Greenberg (1987) and is defined as an individual’s perception of and reactions to fairness in an organization. Justice or fairness refers to the idea that an action or decision is morally right, which may be defined according to ethics, religion, fairness, equity, or law. People are naturally attentive to the justice of events and situations in their everyday lives, across a variety of contexts (Tabibnia, Satpute, & Lieberman, 2008). Individuals react to actions and decisions made by organizations every day. An individual’s perceptions of these decisions as fair or unfair can influence the individual’s subsequent attitudes and behaviors. Fairness is often of central interest to organizations because the implications of perceptions of injustice can impact job attitudes and behaviors at work. Justice in organizations can include issues related to perceptions of fair pay, equal opportunities for promotion, and personnel selection procedures.OverviewOrganizational justice is conceptualized as a multidimensional construct. The four proposed components are distributive, procedural, interpersonal, and informational justice. Research also suggests the importance of affect and emotion in the appraisal of the fairness of a situation as well as one’s behavioral and attitudinal reactions to the situation (e.g., Barsky, Kaplan, & Beal, 2011). A myriad of literature in the industrial/organizational psychology field has examined organizational justice as well as the associated outcomes. Perceptions of justice influence many key organizational outcomes such as motivation (Latham & Pinder, 2005) and job satisfaction (Al-Zu’bi, 2010).Corporate Social ResponsibilityA concept related to organizational justice is corporate social responsibility (CSR). Organizational justice generally refers to perceptions of fairness in treatment of individuals internal to that organization while corporate social responsibility focuses on the fairness of treatment of entities external to the organization. Corporate social responsibility refers to a mechanism by which businesses monitor and regulate their performance in line with moral and societal standards such that it has positive influences on all of its stakeholders (Carroll, 1999). Thus, CSR involves organizations going above and beyond what is moral or ethical and behaving in ways that benefit members of society in general. It has been proposed that an employee’s perceptions of their organization’s level of corporate social responsibility can impact that individual’s own attitudes and perceptions of justice even if they are not the victim of unfair acts (Rupp et al., 2006).Roots in Equity TheoryThe idea of organizational justice stems from Equity Theory (Adams, 1963, 1965), which posits that judgments of equity and inequity are derived from comparisons between one’s self and others based on inputs and outcomes. Inputs refer to what a person perceives to contribute (e.g., knowledge and effort) while outcomes are what an individual perceives to get out of an exchange relationship (e.g., pay and recognition). Comparison points against which these inputs and outcomes are judged may be internal (one’s self at an earlier time) or external (other individuals).

Types of Organizational Justice

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2Three main proposed components of organizational justice are distributive, procedural, and interactional justice (which includes informational and interpersonal justice).

Distributive justice is conceptualized as the fairness associated with decision outcomes and distribution of resources. The outcomes or resources distributed may be tangible (e.g., pay) or intangible (e.g., praise). Perceptions of distributive justice can be fostered when outcomes are perceived to be equally applied (Adams, 1965).

Procedural justice is defined as the fairness of the processes that lead to outcomes. When individuals feel that they have a voice in the process or that the process involves characteristics such as consistency, accuracy, ethicality, and lack of bias then procedural justice is enhanced (Leventhal, 1980).

Interactional justice refers to the treatment that an individual receives as decisions are made and can be promoted by providing explanations for decisions and delivering the news with sensitivity and respect (Bies & Moag, 1986). A construct validation study by Colquitt (2001) suggests that interactional justice should be broken into two components: interpersonal and informational justice. Interpersonal justice refers to perceptions of respect and propriety in one’s treatment while informational justice related to the adequacy of the explanations given in terms of their timeliness, specificity, and truthfulness.

Proposed Models of Organizational JusticeThree different models have been proposed to explain the structure of organizational justice perceptions including a two factor model, a three factor model, and a four factor model. Many researchers have studied organizational justice in terms of the three factor model (e.g., DeConinck, 2010; Liljegren & Ekberg, 2010) while others have used a two factor model in which interpersonal justice is subsumed under procedural justice while yet some other studies suggest a four factor model best fits the data (Colquitt, 2001). Greenberg (1990) proposed a two-factor model and Sweeney and McFarlin (1993) found support for a two-factor model composed of distributive and procedural justice. Through the use of structural equation modeling, Sweeney and McFarlin found that distributive justice was related to outcomes that are person-level (e.g., pay satisfaction) while procedural justice was related to organization-level outcomes (e.g., organizational commitment).The accuracy of the two-factor model was challenged by studies that suggested a third factor (interactional justice) may be involved. Bies and Moag (1986) argue that interactional justice is distinct from procedural justice because it represents the social exchange component of the interaction and the quality of treatment whereas procedural justice represents the processes that were used to arrive at the decision outcomes. Generally researchers are in agreement regarding the distinction between procedural and distributive justice but there is more controversy over the distinction between interactional and procedural justice (Cohen-Charash & Spector, 2001). Colquitt (2001) demonstrated that a four-factor model (including procedural, distributive, interpersonal, and informational justice) fit the data significantly better than a two or three factor model. Colquitt’s construct validation study also showed that each of the four components have predictive validity for different key organizational outcomes (e.g., commitment and rule compliance).

The Role of Affect in Organizational Justice PerceptionsOne of the key constructs that has been shown to play a role in the formation of organizational justice perceptions is affect. The precise role of affect in organizational justice perceptions depends on the form of affectivity being examined (emotions, mood, disposition) as well as the context and type of justice being measured. Affect may serve as an antecedent, outcome, or even a mediator of organizational justice perceptions.A recent article (Barksy, Kaplan, & Beal, 2011) provides a model that explains the role of affect and emotions at various stages of the appraisal and reaction stages of justice perception formation and illustrates that injustice is generally an affect laden and subjective experience. Affect and emotions can be part of the reactions to perceived injustice, as studies have shown that the more injustice that is perceived, the higher degrees of negative emotions are experienced. In addition, affect can act as a mediator between justice perceptions and actions taken to redress the perceived injustice. Affect plays

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2this role in Equity Theory such that negative affective reactions act as a mediator between perceptions and actions, as emotional reactions to justice motivate individuals to take action to restore equity.A recent meta-analysis by Barsky and Kaplan (2007) condenses many studies on this topic and explains that state and trait level affect can influence one’s perceptions of justice. The findings of Barsky and Kaplan show that both state and trait level negative affect can act as antecedents to justice perceptions. State and trait level negative affect are negatively associated with interactional, procedural, and distributive justice perceptions. Conversely, positive state and trait affectivity was linked to higher ratings of interactional, procedural and distributive justice.Based on the research regarding the central role of affect in justice perceptions, Lang, Bliese, Lang, and Adler (2011) extended this research and studied the idea that sustained clinical levels of negative affect (depression) could be a precursor to perceptions of injustice in organizations. Lang et al. (2011) tested longitudinal cross-lagged effects between organizational justice perceptions and employee depressive symptoms and found that depressive symptoms do lead to subsequent organizational justice perceptions. Thus, affect can serve as an antecedent to justice perceptions in this instance.

Antecedents of Organizational Justice PerceptionsEmployee ParticipationOne antecedent to perceptions of organizational justice is the extent to which employees feel that they are involved in decision-making or other organizational procedures. Higher levels of justice are perceived when employees feel that they have input in processes than when employees do not perceive that they have the opportunity to participate (Greenberg & Folger, 1983; Bies & Shapiro, 1988). The opportunity or ability to participate in decision making improves an individual’s perceptions of procedural justice, even when the decision is unfavorable to the individual (Bies & Shapiro, 1988). In addition, other studies have shown that employee input is related to both procedural and interpersonal justice perceptions (Kernan & Hanges, 2002).CommunicationA second antecedent to organizational justice perceptions is organizational communication with employees. Communication has been shown to be related to interpersonal and informational justice perceptions (Kernan & Hanges, 2002). The quality of communication by an organization or manager can improve justice perceptions by improving employee perceptions of manager trustworthiness and also by reducing feelings of uncertainty (Kernan & Hanges, 2002). It is important that the information provided be accurate, timely, and helpful in order for the impact on justice perceptions to be positive (Schweiger & DeNisi, 1991).Justice ClimatePerceptions of organizational justice can be influenced by others, such as co-workers and team members. Recent research suggests that team level perceptions of justice form what is called a ‘justice climate’ which can impact individuals’ own views of justice (Li & Cropanzano, 2009). Employees working within a team may share their perceptions with one another which can lead to a shared interpretation of the fairness of events (Roberson & Colquitt, 2005). Research findings show that individuals can “learn” justice evaluations from team members and these can lead to homogeneity of justice perceptions within teams, creating a strong justice climate (Roberson & Colquitt, 2005). Thus, group-level perceptions of justice can be conceptualized as an antecedent to individuals’ justice perceptions.Outcomes of Organizational Justice PerceptionsEmployees’ perceptions of injustice within the organization can result in a myriad of outcomes both positive and negative. Outcomes are affected by perceptions of organizational justice as a whole or by different factors of organizational justice. Commonly cited outcomes affected by organizational justice include trust, performance, job satisfaction, organizational commitment, organizational citizenship behaviors (OCBs), counterproductive work behaviors (CWBs), absenteeism, turnover, and emotional exhaustion.TrustThe relationship between trust and organizational justice perceptions is based on reciprocity. Trust in the organization is built from the employee’s belief that since current organizational decisions are fair, future organizational decisions will be fair. The continuance of employee trust in the organization and the organization continuing to meet the employee’s expectations of fairness creates the reciprocal relationship between trust and organizational justice (DeConick, 2010). Research has found that procedural justice is the strongest predictor of organizational trust (Hubbell & Chory-Assad, 2005;

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2Cohen-Charash & Spector, 2001). A positive relationship between an employee and supervisor can lead to trust in the organization (Karriker & Williams, 2009).PerformanceThe impact of organizational justice perceptions on performance is believed to stem from Equity Theory. This would suggest that when people perceive injustice they seek to restore justice. One way that employees restore justice is by altering their level of job performance. Procedural justice affects performance as a result of its impact on employee attitudes. Distributive justice affects performance when efficiency and productivity are involved (Cohen-Charash & Spector, 2001). Improving justice perceptions improves productivity and performance (Karriker & Williams, 2009).Job Satisfaction & Organizational CommitmentJob satisfaction was found to be positively associated with overall perceptions of organizational justice such that greater perceived injustice results in lower levels of job satisfaction and greater perceptions of justice result in higher levels of job satisfaction (Al-Zu’bi, 2010). Additionally, organizational commitment is related to perceptions of procedural justice such that greater perceived injustice results in diminished commitment while greater perceived justice results in increases commitment to the organization (DeConick, 2010; Cohen-Charash & Spector, 2001).Organizational Citizenship BehaviorOrganizational citizenship behaviors are actions that employees take to support the organization that go above and beyond the scope of their job description. OCBs are related to both procedural justice (DeConick, 2010; Cohen-Charash & Spector, 2001; Karriker & Williams, 2009) and distributive justice perceptions (Cohen-Charash & Spector, 2001; Karriker & Williams, 2009). As organizational actions and decisions are perceived as more just, employees are more likely to engage in OCBs. Karriker and Williams (2009) established that OCBs are directed toward either the supervisor or the organization depending on whether the perception of just stems from the supervisor or the organization. Additionally, a relationship was found between interpersonal justice and OCBs; however, this relationship was not mediated by the source of justice perceptions (Karriker & Williams, 2009).Counterproductive Work BehaviorsCounterproductive work behaviors are “intentional behaviors on the part of an organizational member viewed by the organization as contrary to their legitimate interests” (Zohghbi-Manrique de Lara & Verano-Tacoronte, 2007, p.716). Increased judgments of procedural injustice can lead to employee unwillingness to comply with an organization’s rules (Zohghbi-Manrique de Lara & Verano-Tacoronte, 2007; Cohen-Charash & Spector, 2001). However, the relationship between perceived procedural injustice and CWBs is mediated by perceived normative conflict, which is the extent to which employees perceive conflict between the norms of their workgroup and the rules of the organization. If the perceptions of procedural injustice result in perceived normative conflict, CWBs will occur (Zohghbi-Manrique de Lara & Verano-Tacoronte, 2007).Absenteeism & WithdrawalAbsenteeism, or non-attendance, is another outcome of perceived injustice related to Equity Theory (Johns, 2001). Failure to receive a promotion is an example of a situation in which feelings of injustice may result in an employee being absent from work without reason. Johns (2001) found that when people saw both their commitment to the organization and the organization’s commitment to them as high absenteeism is diminished. Additionally, withdrawal, or leaving the organization, is a more extreme outcome stemming from the same Equity Theory principles. Distributive justice perceptions are most strongly related to withdrawal (Cohen-Charash & Spector, 2001).Emotional ExhaustionEmotional exhaustion, which related to employee health and burnout, is related to overall organizational justice perceptions. As perceptions of justice increase employee health increases and burnout decreases (Liljegren & Ekberg, 2009). Distributive, procedural, and interactional justice perceptions are able to capture state specific levels of emotional exhaustion which fade over time; however, overall organizational justice perceptions give the most stable picture of the relationship between justice perceptions and emotional exhaustion over time (Liljegren & Ekberg, 2009).

Q4) Describe the main actors involved in industrial relations.

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2Ans:-INDUSTRIAL RELATIONS

Industrial relations is used to denote the collective relationships between management and the workers. Traditionally , the term industrial relations is used to cover such aspects of industrial life as trade unionism, collective bargaining, workers’ participation in management, discipline and grievance handling, industrial disputes and interpretation of labor laws and rules and code of conduct.

In the words of Lester, "Industrial relations involve attempts at arriving at solutions between the conflicting objectives and values; between the profit motive and social gain; between discipline and freedom, between authority and industrial democracy; between bargaining and co-operation; and between conflicting interests of the individual, the group and the community”.

The National Commission on Labor (NCL) also emphasize on the same concept. According to NCL, industrial relations affect not merely the interests of the two participants- labor and management, but also the economic and social goals to which the State addresses itself. To regulate these relations in socially desirable channels is a function, which the State is in the best position to perform.

In fact, industrial relation encompasses all such factors that influence behavior of people at work. A few such important factors are below:

Institution: It includes government, employers, trade unions, union federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems.

Characters: It aims to study the role of workers unions and employers’ federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor court, tribunal etc.

Methods: Methods focus on collective bargaining, workers’ participation in the industrial relations schemes, discipline procedure, grievance redressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protests through methods like revisions of existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc.

Contents: It includes matter pertaining to employment conditions like pay, hours of works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc., laws relating to such activities, regulations governing labor welfare, social security, industrial relations, issues concerning with workers’ participation in management, collective bargaining, etc.

Definition and Concept of IR

Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management).

The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”. By “relations” we mean “the relationships that exist within the industry between the employer and his workmen.”

The term industrial relations explain the relationship between employees and management which stem directly or indirectly from union-employer relationship.

Industrial relations are the relationships between employees and employers within the organizational

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated.

The term industrial relations have a broad as well as a narrow outlook. Originally, industrial relations were broadly defined to include the relationships and interactions between employers and employees. From this perspective, industrial relations cover all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labor) relations. Now its meaning has become more specific and restricted. Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers.

The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. Industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers’ participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises.

For better understanding of industrial relations, various terms need to be defined here:

Industry:

Industrial Disputes Act 1947 defines an industry as any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes whether or not any capital has been invested for the purpose of carrying on such activity; or such activity is carried on with a motive to make any gain or profit. Thus, an industry is a whole gamut of activities that are carried on by an employer with the help of his employees and labors for production and distribution of goods to earn profits.

Employer:

An employer can be defined from different perspectives as:- A person or business that pays a wage or fixed payment to other person(s) in exchange for the

services of such persons. A person who directly engages a worker/employee in employment. Any person who employs, whether directly or through another person or agency, one or more

employees in any scheduled employment in respect of which minimum rates of wages have been fixed.As per Industrial Disputes Act 1947 an employer means:-

in relation to an industry carried on by or under the authority of any department of [the Central Government or a State Government], the authority prescribed in this behalf, or where no authority is prescribed, the head of the department;

in relation to an industry carried on by or on behalf of a local authority, the chief executive officer of that authority;

Employee: - Employee is a person who is hired by another person or business for a wage or fixed payment in

exchange for personal services and who does not provide the services as part of an independent business.

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2 An employee is any individual employed by an employer. A person who works for a public or private employer and receives remuneration in wages or

salary by his employer while working on a commission basis, piece-rates or time rate. Employee, as per Employee State Insurance Act 1948, is any person employed for wages in or in

connection with work of a factory or establishment to which the act applies. In order to qualify to be an employee, under ESI Act, a person should belong to any of the categories:

o Those who are directly employed for wages by the principal employer within the premises or outside in connection with work of the factory or establishment.

o those employed for wages by or through an immediate employer in the premises of the factory or establishment in connection with the work thereof

o Those employed for wages by or through an immediate employer in connection with the factory or establishment outside the premises of such factory or establishment under the supervision and control of the principal employer or his agent.

o Employees whose services are temporarily lent or let on hire to the principal employer by an immediate employer under a contract of service (employees of security contractors, labor contractors, house keeping contractors etc. come under this category).

Employment: The state of being employed or having a job.

Labor market: The market in which workers compete for jobs and employers compete for workers. It acts as the external source from which organizations attract employees. These markets occur because different conditions characterize different geographical areas, industries, occupations, and professions at any given time.

Actors in the IR system

Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions.

Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court ad the like. It also includes third parties and labor and tribunal courts.

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2

SCOPE

The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others.

The scope or industrial relations are quite vast. The main issues involved here include the following:1. Collective bargaining2. Machinery for settlement of industrial disputes3. Standing orders4. Workers participation in management5. Unfair labor practices

Importance of Industrial RelationsThe healthy industrial relations are key to the progress and success. Their significance may be- Uninterrupted production Reduction in Industrial Disputes High morale Mental Revolution Reduced Wastage.

Objectives of Industrial RelationsThe main objectives of industrial relations system are:-1. To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production. 2. To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country. 3. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism.4. To establish and promote the growth of an industrial democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and gheraos by providing and of the country as well.

5. To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits.

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 26. To improve the economic conditions of workers in the existing state of industrial managements and political government. 7. Socialization of industries by making the state itself a major employer vesting of a proprietary interest of the workers in the industries in which they are employed.

Dunlop’s Contribution to IR System

One of the significant theories of industrial labor relations was put forth by John Dunlop in the 1950s. According to Dunlop industrial relations system consists of three agents – management organizations, workers and formal/informal ways they are organized and government agencies. These actors and their organizations are located within an environment – defined in terms of technology, labor and product markets, and the distribution of power in wider society as it impacts upon individuals and workplace. Within this environment, actors interact with each other, negotiate and use economic/political power in process of determining rules that constitute the output of the industrial relations system. He proposed that three parties—employers, labor unions, and government-- are the key actors in a modern industrial relations system. He also argued that none of these institutions could act in an autonomous or independent fashion. Instead they were shaped, at least to some extent, by their market, technological and political contexts.

Key actors in a modern industrial relations system. He also argued that none of these institutions could act in an autonomous or independent fashion. Instead they were shaped, at least to some extent, by their market, technological and political contexts.

Thus it can be said that industrial relations is a social sub system subject to three environmental constraints- the markets, distribution of power in society and technology.

Dunlop's model identifies three key factors to be considered in conducting an analysis of the management-labor relationship:

1. Environmental or external economic, technological, political, legal and social forces that impact employment relationships.

2. Characteristics and interaction of the key actors in the employment relationship: labor, management, and government.

3. Rules that are derived from these interactions that govern the employment relationship.

Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of industrial relations may be regarded as a system in the sense that each of them more or less intimately affects each of the others so that they constitute a group of arrangements for dealing with certain matters and are collectively responsible for certain results”.

In effect - Industrial relations is the system which produces the rules of the workplace. Such rules are the product of interaction between three key “actors” – workers/unions, employers and associated organizations and government

The Dunlop’s model gives great significance to external or environmental forces. In other words, management, labor, and the government possess a shared ideology that defines their roles within the relationship and provides stability to the system.

Approaches to Industrial Relations

The industrial relations scenario and factors affecting it, has been perceived differently by different practitioner and theorist. Some have viewed it in terns of class conflict; some have viewed it in terms of mutuality of interest of different groups; some have viewed it as a consequence of interaction of various

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2factors both within an organization and outside it. Based on these orientations, several approaches have been developed to explain the dynamics of IR.

UNITARY APPROACH PLURALISTIC APPROACH RADICAL APPROACH

This perspective focuses on the fundamental division of interest between capital and labor, and sees workplace relations against this background. It is concerned with the structure and nature of society and assumes that the conflict in employment relationship is reflective of the structure of the society. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital.

Q5) ‘Explain the steps in formal grievance redressal procedure. Ans:-Grievance may be defined as ‘a complaint or resentment against any unjust or unfair act’. Grievance is any issue associated with an organisation or its management like employee discrimination or harassment by managers. Grievance may also be any alleged violation of employee contracts or settlements or violation of any laws, or on race, age or sex discrimination. The International Labour Organisation (ILO[2]) defines a grievance as ‘a complaint of one or more workers with respect to wages and allowances, conditions of work and interpretation of service, condition covering such areas as overtime, leave, transfer, promotion, seniority, job assignment and termination of service’.Our society has police stations, panchayats and NGO that handle grievances of the public. In the same way, organisations have grievance redressal committees where aggrieved employees present their unresolved issues. Organisations generally provide a quality work environment to boost employee morale and enhance employee performance to help the organisation achieve its goals. Employee grievances are one of the factors that impede establishing appropriate work environment. To establish good work atmosphere and to assure employees, grievances handling is important for any organisation. In this unit we will learn the different techniques of grievances handling. Organisations ought to be efficient in handling employee grievances and ought to have appropriate dispute resolution and grievance handling

Steps in Grievance Redressal ProcedureOrganisations (whether unionised or non- unionised) are legally bound to provide in a written statement of terms and conditions of employment, details of the person to whom any employee who has a grievance may apply. A grievance procedure sets out how such an application is made and how it is dealt with. The procedure aims to settle the grievance as quickly, fairly, and as near to the point of origin as possible. In practice this means that the issue is more often settled by the employee’s immediate supervisor or line manager. The grievance procedure describes about what happens if the grievance cannot be resolved at this level. The different types of grievances procedures are discussed below.

Formal Grievance RedressalThere are three formal stages to redress any grievance. Each stage has a form which is numbered according to the stage it belongs. First, it has to be noted that the grievances have to fall under one of the following categories to be considered as one:· Amenities· Compensation· Conditions of work· Continuity of service· Disciplinary actionStage I of Grievance Redressal

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2An employee who has a grievance meets the shift-in-charge and discusses it. If necessary, the employee obtains a copy of grievance form 1. It is done within a week of occurrence of the aggrieving incident or when the employee became aware of the situation. In case of promotion, a time limit of six weeks from the date of the promotion is permitted.The employee fills up the particulars and hands it over to the shift-in-charge and obtains an acknowledgement receipt in return. The shift-in-charge makes the necessary enquiries and returns the form to the employee with remarks filled in the form within two working days from the date of receipt of the form. In cases where reference to higher authorities or to another department is necessary, more time is provided.Stage II of Grievance RedressalIf the matter is not resolved at Stage 1, the employee obtains grievance form 2 and submits it to the next senior manager. The senior manager arranges a meeting within three working days. The department head discusses the issue with the concerned supervisor and the employee and returns the grievance form to the employee with remarks. A unionised member may assist the employee at this stage of grievance redressal.Stage III of Grievance Redressal If the employee is not satisfied with the reply of the departmental head, the employee appeals to the Chairman of his Unit Grievance Redress Committee within seven working days of the receipt of reply at Stage II. The employee obtains a copy of grievance form 3 from the shift-in-charge. The recommendations of the Unit Grievance Redress Committee are considered unanimous and binding on the employee, if no objections are raised by either the management or the union. If objections are raised, the matter is sent for further consideration to the resident director who discusses it over with the president or the deputy president before arriving at a definite conclusion. Figure 7.2 depicts the formal flow of grievance procedure.

Figure: Grievance Handling Procedure within an Organisation

Informal Grievance RedressalIn the informal method, the aggrieved employee directly approaches the shift-in-charge or section head (in case of a major grievance). They engage in a direct consultation and resolve the grievance amicably in stage I itself. This way, the employee saves a lot of time and also avoids going through the psychological tension and pressure that comes with a long and formal procedure. Most employees agree that the informal method of resolving grievances directly approaching the supervisor is a much better and less complicated method to redress grievances. Most employees feel that the formal system was too tiresome and time consuming.

Collective Bargaining

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2It is important to differentiate individual grievances from group grievances. If the issue involves one or a few individual employees, it is handled through a grievance procedure. But when the issue involves policy implications and wider interests, they are resolved by the method known as collective bargaining.Collective Bargaining is a grievance handling process where a large number of employees are involved and their issues are handled collectively. Unions typically represent the employees during the process of collective bargaining. The primary role of trade union is to protect the interests of its members. Collective bargaining is a negotiation method undertaken by the union with the objective of resolving labour issues while protecting employee interests.Grievance procedure can be categorised in another way depending on the policy adopted by an organisation. The policies are Open Door and Step Ladder Policy. You will learn in detail about the two policies in the next section.

Types of Grievance PolicyGrievance procedure is a communication between an employee and the management intended to resolve a grievance. Grievance procedures are different in different organisations. It depends on the policy adopted in the organisation. In the previous section, you learned the two different policies followed by organisations:

· Open Door PolicyIn this policy, the distressed employee is free to meet the top executives of the administration and get his grievances redressed. This policy normally works well only in small firms where the management is more transparent and approachable to all employees.In larger organisations, top management executives are usually very busy and have no time to spare on individual employee grievances. In addition, it is believed that open door policy is suitable for executives as operation employees may be hesitant to approach the top management.

· Step Ladder PolicyIn this policy, the distressed employee has to follow a step by step method to get the grievance redressed. In this process, whenever an employee has a grievance, the problem is presented to the employee’s immediate supervisor. If the employee is not happy with resolution stated by the superior, then the grievance is discussed with the departmental head. The crisis is generally discussed with a joint grievance committee. If, even the committee is unsuccessful at resolving the grievance, it is then presented to the chief executive. If the chief executive also fails to find solution, then the grievance is presented to voluntary arbitration where the decision of authority is binding on both the organisation as well as the aggrieved employee.

Grievance Policy in Indian IndustryLet us look at the grievance policy as adopted by Indian industry. The Indian Labour Conference has adopted a Model Grievance Procedure. It is consists of six steps to follow in order to redress a grievance. First the aggrieved employee approaches the foreman and presents the grievance orally. If the employee is not satisfied with the redressal, the supervisor is approached. The supervisor provides an answer in two days. If still the employee is unsatisfied with the redressal, the head of the department is approached, who gives an answer in three days. The next level is the Grievance Committee that consists of representatives of the employee and the employer. The grievance committee gives an answer within a week. The next level for redress grievance if the employee is still not satisfied is the manager who responds in three days. If no agreement is reach till this step, the grievance is referred to voluntary arbitration where the decision is binding to both the employee and the employer.Even though the legislation spells out the Model Grievance Procedure, organisations do not always follow the procedure. Sometimes, organisations follow procedures similar to the legislated grievance procedure.

Q6) What are the different types of disciplinary problems.Ans:-

Sikkim Manipal University - MBA - MU0012 – – Employee Relations Management

Semester: 3 - Assignment Set: 2 Five types of discipline that might be utilized in dealing with employees in the long term care environment are:

1) verbal reprimand,

2) written reprimand,

3) docking pay,

4) suspension,

5) termination.