functional mgt1(business relationships)

7/30/2019 Functional Mgt1(business relationships)

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Functional

Management-1


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Trade UnionAn organization whose membership consists of workers and

leaders, united to protect and promote their common intere

A trade union is an organization created to improve conditiothe workplace. Whether the issue is wages, sick time, or medbenefits, trade unions negotiate with employers on behalf omembers. When employees and employers are unable to reagreement, trade union leadership works with employers tonegotiate a compromise. Regardless of the outcome, all memof the trade union must follow the agreed upon solution.


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Objectives Of Trade Unions

Wages and salariesWorking conditions

Discipline

Personnel policies

Welfare

Employee-employer relations

Negotiating machinery


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Functions Of Trade Union

Militant or intramutual functionsFraternal or extra-mural functions

Political functions

Social functions


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Militant Or IntraMutual Functions

These functions include protecting the workers:

To achieve higher wages and better working conditions

To raise the status of workers as a part of industryTo protect labors against victimization and injustice

Fraternal Or Extra- Mural Function

These function include providing financial and non- financial :

To take up welfare measures for improving the morale of workeTo generate self confidence among workers

To encourage sincerity and discipline among workers

To provide opportunities for promotion and growth

To protect women workers against discrimination


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Political Functions

These functions include affiliating the union to a political party:

To helping the political party in enrolling members

To collecting donations

To seeking the help of political parties during the periods of striklockouts.

Social Functions

these functions include carrying out social service activities:Educating the customers

scheme, and procedure for redressing their grievances.

Publication of periodicals

Research


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Union Structure

Craft unionsIndustrial union

General union

Federation


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Craft Union

A craft union is one whose members do one type of work

It is horizontal in character as its members belong to a single

group processes.

it has Strong bargaining power

Industrial union

An industrial unions is one that includes many persons workinsame industry or company.

It is vertical in nature as it consist of all types of workers in an

It has strong bargaining power


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General union:

It is consist of workers employed in different industries and cwithin a particular city or region.

All workers are equal and there is no distinction between skiunskilled workers.

There is convenience negotiations as the employer need notwith so many splintered groups.

Federations:

These are national level entitles to which plant level unions ,unions ,industrial unions and general unions are affiliated.


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Collective Bargaining

The process of negotiating the terms of employment betweemployer and a group of workers.

The terms of employment are likely to include items such aconditions of employment, working conditions and other wrules, base pay, overtime pay, work hours, shift length, worksick leave, vacation time, retirement benefits and health carbenefits.


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Features

Collective

Strength

Voluntary

Continuous

Dynamic

Power relationshipRepresentation

Bipartite process

complex


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Objectives Of Collective Bargaini

To maintain cordial relations between the employer and empTo protect the interests of the workers through collective ac

by preventing unilateral actions from being taken by the em

To ensure the participation of trade unions in industry.

To avoid the need for government intervention as collective

bargaining is a voluntary collective process.To promote Industrial democracy.


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Types of Bargaining

Distributive Bargaining:

It involves haggling over the distribution of surplus.

Various activities involved in this activity are wages, salaries, bonus anfinancial issues. In this activity, both the parties face a win/lose situat

Integrative Bargaining:

Also known as Interest-Based Bargaining, issues which are not damagparty are discussed.

It is a negotiation strategy in which both the parties collaborate to finsolution to their problems.

This strategy focuses on developing mutually beneficial agreements binterests of the disputants. Issues brought up may be better job evaluprocedures, better performance appraisal methods or training progra


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Types of Bargaining (cont..)Attitudinal structuring:

Attitudinal structuring refers to efforts by negotiators to shape theiperceptions about the nature of the issues to be negotiated.

This activity involves shaping and reshaping some perceptions like tfriendliness/hostility, co-operative/non-cooperative between the lamanagement.

Intra- Organizational Bargaining:

It is a type of maneuvering to achieve consensus among the workermanagement.

Even within the union there may be differences between different gbe the case with the management.

Intra- organizational consensus is required for the smooth acceptan

outcome of Collective Bargaining.


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Process of Collective Bargaining Preparation for Negotiation Identifying issues for Bargaining

Negotiation

Negotiated Agreement

Ratification of Agreement Implementation of Agreement

Preparation for Negotiation


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Preparation for Negotiation

From the managements point of view, pre-negotiation preparation

Management should decide when and how to open the negotiat

Management must choose the representatives to negotiate at thtable.

Draft for likely decisions should be prepared in advance so that tagreement draft can be prepared as soon as the negotiation proc

From the employees side also, preparation is required for the follo

The union should collect the information related to the financial pcompany and their ability to pay the employees.

The union must also be aware of the various practices followed bcompanies in the same region or industry.

The union must assess the attitudes and expectations of the empconcerned issues so that the outcome of negotiations does not faresistance from them.


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Identifying issues for Bargaining:

Wage-related issues: Include wage or salary revision, allowanc

meeting increased cost of living like Dearness Allowance (D.A)financial perks, incentives etc.

Supplementary economic benefits: These include pension plagratuity plans, accident compensation, health insurance plansholidays etc.

Administrative issues: Include seniority, grievance proceduresemployee health and safety measures, job security and job cha

P f C ll i B i i


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Process of Collective Bargaining

(cont)Negotiation: When the first two steps are completed, both part

in actual negotiation process at a time and place fixed for the pu

There a re two types of negotiations:1. Boulwarism: In this method, the management themselves tak

initiative to find out through comprehensive research and survneeds of the employees. Based on the analysis of the findings,company designs its own package based on the issues to be baThereafter, a change is incorporated only when new facts are p

by the employees or their unions.2. Continuous Bargaining:Involves parties to explore particular b

problems in joint meetings over a long period of time, some ththe life of each agreement. The basic logic behind this methodpersistent issues can be addressed through continuous negotiaa period of time. The success of negotiations depends on the sabilities of the negotiators.


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(cont.)Initial negotiated agreement: When two parties arrive at a mut

agreement either in the initial stage or through overcoming negobreakdown, the agreement is recorded with a provision that thebe formalized after the ratification by the respective organizatio


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(cont.)Ratification of agreement:

Ratification of negotiated agreement is required because therepresentatives of both the parties may not have ultimate autdecide various issues referred to for collective bargaining.

The ratification of agreement may be done by the appropriateauthorized for the purpose in the case of management, or tra

executives in the case of the employees.Ratification is also required by the Industrial Disputes Act.

It is important that the agreement must be clear and precise.

Any ambiguity leads to future complications or other such pro


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(cont.)Implementation of agreement:

Signing the agreement is not the end of collective bargaining,is the beginning of the process when the agreement is finalizebecomes operational from the date indicated in the agreeme

The agreement must be implemented according to the letter

of the provisions made by the agreement agreed to by both pThe HR manager plays a crucial role in the day-to-day adminisimplementation of the agreement.


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Discipline Administration Purpose

To establish policy, define responsibilities, and set forth proceadministering corrective disciplinary action.

Discipline shall mean corrective action taken with respect toemployee/volunteer violations of conduct standards that are

enough to warrant verbal (documented) reprimand, written rrevocation of privileges, disciplinary time-off, demotion or dis


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Positive Approach

This approach builds on the philosophy that violations are actusually can be corrected without penalty .there three steps todiscipline

Counseling

Written warning

Final warningDischarge


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Progressive ApproachIn this approach discipline is imposed in a progressive manner, giviopportunity to the employee to correct his or her misconduct volu

The concept of progressive discipline states that penalties must bethe violation .

1. Oral Reprimands

2. Written Reprimand

3. Suspension4. Dismissal


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Progressive Approach (cont...)The progressive discipline model has two advantages for managers:

It gives the employee additional opportunities to correct his performto discharge.

It stresses the seriousness of repeated violations to employees.

This progressive discipline has the following disadvantages:

1) Progressive discipline may result into bitter relationships betweenand employee.

2) Supervisor may feel obligated to address every performance offenassign an appropriate punishment to it, even though it may not be

3) Management may focus only on the problem employees at the exgood performers, thereby consuming too much of a manager's tim


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Disciplinary Action

Issuing a letter of charge

Consideration of explanation

Show cause notice

Holding of fullfledged enquiry

Making a final order of punishment

Follow up


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Grievance Handling

A grievance is a sign of an employee's discontentment with

his relationship with his colleagues. Grievances generally arthe day-to-day working relations in an organization

you are unhappy with something that you have been asked part of your job.

You may be concerned about an issue that has arisen at wo

example, the terms of your contract of employment have bechanged.

You may wish to make a complaint about a colleague or a mfor example, you feel that you are being bullied by a colleagmanager.


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Causes of grievancesEconomic: wage fixation ,over time,bonus,wage revision,etc.

Ex: employees may feel that they are paid less when compared to

Work environment: poor physical conditions of work place ,tighnorms ,defective tools and equipment , poor quality of materialslock of recognition ,etc.

Supervision: relates the attitude of the supervisor towards the eas perceived notions of bias , favoritism , nepotism , caste affilicafeelings etc.

Work group : employee is unable to adjust with his colleagues s

Miscellaneous: these include issues relating to certain violationpromotion ,safety methods , transfer , disciplinary ,fines ,grantin

medical facilities , etc.


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Advantages Of Having A Grievance Handling P

The management can know the employees feelings and opinions abcompanys policies and practices. It can feel the pulse of the emplo

With the existence of a grievance handling procedure, the employee to ventilate his feelings. He can let off steam through an official chan

problems of workers cannot be solved by first line supervisors, for thsupervisors lack the expertise that the top management has, by virtue

professional knowledge and experience.

It keeps a check on the supervisors attitude andbehavior towards thsubordinates. They are compelled to listen to subordinates patiently asympathetically.

The morale of the employees will be high with the existence of prophandling procedure. Employees can get their grievances redressed in


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Guidelines For Handling GrievancThe following guidelines may help a supervisor while dealing with griev

Treat each case as important and get the grievance in writing.

Talk to the employee directly. Encourage him to speak the truth. Give patient hearing.

Discuss in a private place. Ensure confidentiality, if necessary.

Handle each case within a time frame.

Examine company provisions in each case. Identify violations, if any. hold back the remedy if the company is wrong. Inform your superior agrievances.

Get all relevant facts about the grievance. Examine the personal recordaggrieved worker. See whether any witnesses are available. Visit the wThe idea is to find where things have gone wrong and who is at fault.

G id li F H dli G i


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Guidelines For Handling Grievanc

(cont) Gather information from the union representative, what he has to

wants, etc. Give short replies, uncovering the truth as well as prov

him properly.

Control your emotions, your remarks and behaviour.

Maintain proper records and follow up the action taken in each ca

Be proactive, if possible. Companies like VSP, NALCO actually i

to ventilate their grievances freely, listen to the other side patientlreasons why the problems arose and redress the grievances promp

MANAGING DISMISSALS AND


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MANAGING DISMISSALS ANDSEPARATION

SEPARATION

Employee separations occur when employees cease to be members of an orgaservice agreement between the employee and the employer comes to an end andecides to leave the organisation. Separations can take several forms such as:

Resignation

Retirement:

1.Compulsory reti rement

2.Voluntary retirement

3.Death Lay off

Retrenchment:

1.Outplacement

2.Suspension

Discharge and dismissal


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Resignation An employee may decide to quit an organisation voluntarily

personal or professional grounds such as getting a better jochanging careers, wanting to spend more time with family, oactivities.

The decision could, alternatively, be traced to the employeedispleasure with the current job, pay, working conditions or

colleagues. Sometimes an employee may be forced to quit torganisation compulsorily on grounds of negligence of duty,insubordination, misuse of funds, etc.


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Retirement: a retirement is normally initiated by the employee. Howeve

retirement differs from a quit in a number of ways.

First, a retirement usually occurs at the end of an employeeA quit can happen at any time.

Second, retirements usually result in the retiree's receiving the form of provident fund, pension, gratuity, encashment oleave etc., from the organisation.


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Retirement (cont...)Employees retire from service on account of two reasons:

Compulsory retirement:Government employees retire compulso

attaining age of superannuation (either 58 or 60). In the private seretirement age may well go beyond 60, depending on a person's aperform well in a competitive scenario.

Voluntary retirement:In case of voluntary retirement, the normabenefits are calculated and paid to all such employees who put in

qualifying service.Death: Some employees may die in service. When the death is ca

occupational hazards, the employee gets compensation as per theWorkmens Compensation Act, 1923. On compassionate grounds,organisations offer employment to the spouse/child/dependent o

who dies in harness.


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Lay off

A layoff is a temporary removal of an employee from the payroll

organisation due to reasons beyond the control of an employer. competition, reductions in product demand, changing technologreduce the need for workers, and mergers and acquisitions are tfactors behind most layoffs.

The services of the employees are not utilised during the layoff the layoff is for a temporary period (sometimes it could the indeemployee is likely to be called back to join the ranks once.

The employer-employee relationship, therefore, does not come but is merely suspended during the period of layoff. The purposeis to trim the extra fat and make the organisation lean and comp


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Retrenchment Retrenchment is the permanent termination of an employe

services due to economic reasons (such as surplus staff, poofor products, general economic slow down , etc.)

It should be noted here that termination of services on discgrounds, illness, retirement, winding up of a business does nconstitute retrenchment


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Retrenchment (cont...) Outplacement: Employees who are retrenched/laid off may

difficulty in finding an alternative job if the market conditionadverse. There might be a demand for certain category of epossessing multiple skills, but the retrenched employees mahave those marketable skills. To fill this vacuum, some orgoffer training in such skills and assist the retrenched employfinding a suitable job elsewhere.

Outplacement assistance includes efforts made by employea recently separated worker find a job. Apart from training,multinational firms offer assistance in the form of paid leavecharges for attending interviews, search firm charges, waivirequirements to the retrenched employees.


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Retrenchment (cont...) Suspension: Suspension means prohibiting an employee fro

attending work and performing normal duties assigned to h

It is a sort of punishment for a specified period and is generresorted to only after a proper inquiry has been conducted. suspension, the employee receives a subsistence allowance

If the charges against the suspended employee are serious a

proved, suspension may lead to termination also.


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Discharge and Dismissal Dismissal is the termination of the services of an employee as a puniti

some misconduct.

Discharge also means termination of the services of an employee, butpunishment . A discharge does not arise from a single, irrational act.

There could be many reasons for it such as:

Inebriation and alcoholism

Wilful violation of rules

CarelessnessInsubordination

Physical disability

Dishonesty

Violent and aggressive acts

Inefficiency


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functional mgt1(business relationships)

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