Managing Contract Labour & Effective Industrial Relations

Everyday I remind myself that my inner and outer life are based on the labour so other men, living and dead, and that I must exert myself in order to give in the same measure as I have received and am still receivingAlbert EinsteinManaging Contract Labour & Effective Industrial Relations

Presentation OutlineIR & Business ScenarioEvolution of CPSEsEvolution of HRs RoleDynamics of IRFeatures of Contemporary IRFactors Impacting IRNew FrameworkContract Labour ManagementRoad Ahead

Evolving Business Eco-system3Economic turbulenceState of art technologyWorld class business products & practicesCost competitivenessCorporate GovernanceInclusive societyDemanding stake-holders, Emergence of new stake-holdersStringent environmental policiesDemographic dividend Generation YKnowledge WorkersWar for Talent resource

Era of Exponential Change

Quality ChallengeQuality & cost consciousnessPeople ChallengeCompetent, innovative, proactive, systems driven and entrepreneurialTechnology ChallengeNew technology, absorbing it, adapting it and continuously improving upon itCultureWell laid out systems and procedures, feedback, commitmentSpeedSpeedier decision making, Execution Excellence

Organisational Challenges

Organisational Challenges LeanCost Competitiveness, Enhanced productivityInvesting on peopleCompetency building Learning OrganizationsR & D focus, Creativity, InnovationFlat & Non hierarchical StructureEmployees goal driven, not procedure drivenSocial responsibilitySense of duty towards the community

Changing Rules of Game6Contemporary Progressive Organisations DeterminantsHigh PerformingHighly CompetitiveVibrant HR Systems and ProcessesContinuously reinventingInnovative and creative cultureLearning organisationSatisfied stakeholders- Employees/Representative bodies - Community- Govt./State - Owners/Financial Institutions

Leveraging HR7Business HR partnershipEvolving HR policy and practices (people centric)Employee Engagement Continuous challenge Capability buildingLearning opportunity and professional growthRobust differentiation systemConducive IRTransparency Mutual Trust & Respect, CamraderieWork life balance

HR Function Evolution INDUSTRIAL RELATIONS COMPLIANCE REGIMEROLE OF TRADE UNIONSCOMPENSATION SYSTEMS PERSONNEL WELFARE STATESOCIAL SECURITYHRM EMPLOYEE ENGAGEMENTTRAINING & DEVELOPMENTRETENTION STRATEGIESSTRATEGIC HR - BUSINESS PARTNER

CPSEs Evolving in Sync with TimesPhase I -Working similar to Govt. Deptt. Budgetary support from Govt.Phase II -Withdrawal of Budgetary Support by Govt.Phase III -Liberalization, Competition due to New PlayersPhase IV -Era of Competitiveness & Efficiencies, New Technology, Modernization/ Expansion, Value added products, Strict regulatory framework (Environment, Corp. Governance, Statutes)CPSEs - Moving to Next Orbit

EMERGING ISSUES & CHALLENGES SHIFTING PARADIGMMIX OF SENIORS WITH GEN-YCHANGING / FLEXIBLE JOB DESCRIPTIONMERIT VS. SENIORITYBENCHMARKING OF PRACTICES/ BENEFITSDIVERSE WORKFORCE

10

EMERGING ISSUES & CHALLENGES CHANGING PATTERN OF WORK:GLOBALIZATION & BUSINESS RESTRUCTURINGEMERGING TECHNOLOGIESCLOSER COLLABORATION BETWEEN INDUSTRY & ACADEMICIA: SKILLS, CAPACITYMECHANIZATION WITH LESSER HUMAN INTERVENTIONMENTORSHIP & REVERSE MENTORSHIP

11

Evolving Dynamics - Industrial relationsChanging demographicsShifting labour marketAge & Skill profileKnowledge WorkersMulti-cultural workforceChanging Socio-cultural MilieuHigher expectations of youthEnhanced awareness among workforceIncreased mobility social, geographicalNew set of values & behaviour Change in nature of engagement/WorkingVirtual system of working loss of connectOutsourcing /ContractingTemporary / Periodical employmentuNORGANISED SECTOR

INSTITUTIONAL MECHANISMSINT. LABOUR ORGN. RATIFICATIONSINTERNATIONAL DIALOGUE & INITIATIVESGOVT (CENTRE & STATE)JUDICIAL PRONOUNCEMENTSTRIPARTITE BODIESINDIAN LABOUR CONFERENCEBipartite bodiesSTATUTORY COMMITTEES

Bipartite Forums - SAIL

Features of Contemporary IRReforms in Labour Legislation not keeping pace with business realitiesProactive initiatives by Management Dilution of bargaining processUnions marginalised at the workplace fading of ideologyRise in individualism/individual negotiationGreater concern for individual rights equal opportunitiesBlurring of boundaries of work locationEmphasis on human resource managementPersisting issues of trust and fairness

Factors Impacting IRWorkplaces getting smallerFlexibility and fragmentation of the workforcePervasiveness and urgency of changeChanging composition of workforce - diversityIssues of work-life balanceInfluence of new age culture/individualism at workErosion of ethics and values

New Conceptual FrameworkTraditional collective model is less relevant in many workplacesNeed to accommodate rise in individualism and flexibilityNeed a model that can address core issues in the employment relationship of trust, exchange and controlPsychological contract can meet these requirements

The Model FrameworkThe Good Employer

The High Quality WorkplaceTheDealSatisfiedAnd ProductiveWorkers

The DealEmployer Delivers onPromisesEmployeesDeliver on PromisesFairnessTrustCommitmentWell-BeingPerformance

The Good EmployerEmployee PartnershipFlexibleEmploymentPracticesClimate of Positive Organisational SupportProgressive Human Resource PracticesThe Good EmployerHigh Quality Workplace

High Quality WorkplaceReasonable demands/manageable workloadSome personal control over workSupport from supervisors and colleaguesPositive relationships at workRole clarityInvolvement in changes

ROAD AHEADREINFORCING COMMUNICATIONCONVEY TASKS & TARGETS IN CLEAR TERMSENCOURAGE TWO WAY COMMUNICATIONENSURE COMMUNICATION CHANNELS AT EACH LEVELGO FOR BIPARTITE SOLUTIONS MAINTAIN ROBUST GRIEVANCE HANDLING SYSTEMCOMMUNICATE PERIODICALLY WITH FAMILIES

ROAD AHEADHUMAN RESOURCE DEVELOPMENTEACH EMPLOYEE POSITION CRITICALCOMPETENCY MAPPINGFREEZING SKILL REQUIREMENTSFOCUSED TECHNICAL TRAININGCULTIVATING SELF ESTEEM OF EMPLOYEES

ROAD AHEADSTRENGTHENING INFORMATION TECHNOLOGYINCREASING CONNECTEDNESS ENABLING QUICK RESPONSE PROMOTE TRANSPARENCY, EQUITY & FAIR PLAYENHANCE SELF ESTEEM OF EMPLOYEES

ROAD AHEADREINFORCING ROLE OF TRADE UNIONS CONTINUOUS TWO WAY DIALOGUEINCREASING ENGAGEMENT IN ORGANISATIONAL PRIORITIESSTRENGTHEN COLLECTIVE BARGAINING

ROAD AHEAD IMPROVING WORK PLACEENHANCING AMENITIES/FACILITIESREORGANISING WORK FLOW / PROCESSESENRICHMENT OF JOBSMOTIVATIONAL MEASURES

ROAD AHEADWORK LIFE BALANCEPROMOTING SOCIAL EVENTS / INITIATIVES FOCUS ON FAMILYRECREATIONAL INITIATIVES

ROAD AHEADMANAGING CONTRACT WORKERS IMPROVE COMPLIANCES ENSURE SOCIAL SECURITY PROVIDE SKILL DEVELOPMENT PLATFORM- INCREASE EMPLOYABILITY BUILD IN FAIR COMPENSATION PACKAGES-ALSO AGENTS OF GROWTH

Journey towards Effective IR continues.Trust as mutual confidence or loyalty or ethical behavior, or whether you deal with its fruits of empowerment and teamwork and synergy, trust is the ultimate root and source of our influence

Evolution of HR rolesEarly -1990sPost - 2000Evolution of thinkingEmployee championEmployee Advocate (EA)

Human capital (HC) developerEmployees are increasingly critical to the success of organizations. EA focuses on todays employee;

HC developer focuses on how employees prepare for the future.Administrative expertFunctional expertHR practices are central to HR value. Some HR practices are delivered through administrative efficiency (such as technology), and others through policies, menus, and interventions, expending the Functional expert role.Change agentStrategic partnerBeing a strategic partner has multiple dimensions: business expert, change agent, knowledge manager, and consultant. Being a change agent represents only part of the strategic partner role.Strategic partnerStrategic partner

LeaderAs above

Sum of the first four roles equals leadership, but being an HR leader also has implications for leading the HR function, collaborating with other functions, ensuring corporate governance and monitoring.

Source: Dave Ulrich, Human Resource Champions (Boston:Harvard Business School Press)