UNIT - IV

Need: - A need is something that is necessary for organisms to live a healthy life. Needs can be

objective & physical such as food or they can be subjective & psychological such as the need for self

esteem.

Definition: -

1. “A motivating force that compels action for its satisfaction” – General.

Need Assessment: - A process by which an organization’s HRD needs are identified & articulated. It

identifies,

1. An organizations goals & its effectiveness in reaching these goals.

2. Gaps b/w current skills & the skills needed to perform the job successfully.

3. The set of conditions under which the HRD activity will occur.

4. The need for employee training in the organisation.

Benefits: - Through needs assessment, we try to answer questions like,

1. Need for the needs assessment.

2. Accomplishment of type of learning.

3. Expected changes in the behaviour & performance.

4. Probability of achieving the results.

5. Cost benefit analysis of HRD solutions.

6. Root causes of performance gaps.

Levels of need assessment: -

I. Organisational analysis: - It looks at the effectiveness of the organisation & determines where training

is needed & under what conditions it will be conducted.

II. Task analysis: - It provides data about a job or a group of jobs & the knowledge, skills, attitudes &

abilities needed to achieve optimum performance.

III. Individual analysis: - It analyses how well the individual employee is doing the job & determines

which employees need training & of what kind.

Four steps to conduct a need assessment: -

1. Perform a GAP analysis.

2. Identify priorities & importance.

3. Identify causes of performance problems.

4. Identifying possible solutions & growth opportunities.

Training: - Training is an act or process of increasing the knowledge & skill of an employee for doing a

particular job. Training is short term educational process & utilising a systematic & organised procedure

by which employees learn technical knowledge & skills for a definite purpose.

Definition: - “Training is a organised procedure by which people learn knowledge & skill for a definite

purpose” – Brech.

Objectives: -

1. To improve basic knowledge.

2. To teach new techniques.

3. To prepare employees to meet changes.

4. To prepare employees for higher level tasks.

Need: -

1. Job requirements.

2. Technological changes.

3. Organisational development.

4. Employee development.

Importance: -

1. Higher productivity.

2. Better quality of work.

3. Less learning period.

4. Cost reduction.

5. Reduced supervision.

6. Lower accident rate.

Methods: -

I. On the job: -

1. Job rotation.

2. Coaching.

3. Job instruction.

4. Committee assignments.

I. Off the job: -

1. Training centers.

2. Role playing.

3. Lecture method.

4. Discussion method.

5. Programmed instruction.

Principles or Guidelines: -

1. Clear objectives.

2. Training policy.

3. Motivation.

4. Organised material.

5. Learning periods.

6. Preparing the instructor.

7. Feedback.

8. Practice.

9. Appropriate techniques.

10. Rewards for efforts.

Process: -

1. Identifying training needs.

2. Setting up of training objectives.

3. Designing the training programme.

4. Implementation of the programme.

5. Evaluation of results.

Problems: -

1. Benefits not clear to top management.

2. Doesn’t spend sufficient money on training.

3. Top management hardly rewards supervisors.

4. Timely information is difficult to obtain.

5. Trade unions busy in other issues.

UNIT - III

Works Committee: - Every industrial undertaking employing 100 or more workers is under an

obligation to set up a works committee considering equal number of representatives of employer &

employees. According to Indian Labour Conference works committees are concerned with,

a. Educational & recreational activities.

b. Safety & accident prevention.

c. Occupational Diseases & protective equipment.

d. Conditions of work such as ventilation, lightening etc.

e. Administration of welfare activities.

f. Amenities such as drinking water, canteen, dining room etc.

Joint Management Councils: - Just to make a start in labour participation in management, the

government suggested in its Industrial Resolution 1956 to set up Joint Management Councils. It

consists of equal number of members from workers & employers (min 6 & max 12). Decisions of the

Joint Management Councils should be unanimous & should be implemented without any delay. Its

objectives are,

a. Satisfy psychological needs of workers.

b. Improve welfare measures.

c. Increase work efficiency.

d. Increase relationship b/w workers & managers.

Workers Participation in Management: - Workers Participation in Management is an essential

ingredient of industrial democracy. The concept of Workers Participation in Management is based on

human relations approach to management which brought about a new set of values to labour &

management. It implies mental & emotional involvement of workers in the management of enterprise. It

is considered as a mechanism where workers have a say in the decision making.

Objectives: -

1. To establish industrial democracy.

2. To build most dynamic human resources.

3. To satisfy workers social & esteem needs.

4. To maintain industrial peace.

5. To secure full recognition of workers.

Importance: -

1. Unique motivational power.

2. Peace & harmony b/w workers & management.

3. Help for growth of the organization.

4. Participation makes them more responsible.

5. They become more willing to take initiative & come out with cost – saving suggestions & growth

oriented ideas.

Forms: -

1. Suggestion Schemes – Workers are invited & encouraged to offer suggestions for improving the

working conditions of the enterprise.

2. Works Committee – Under the ID Act of 1947, every establishment employing 100 or more workers

is required to constitute a works committee. It consists of equal number of representatives from the

employer side & the employee’s side.

3. Board of Directors – Two members from workers side will be made as board of directors & they will

take care of every issue.

4. Share Holders – In this the workers will purchase the shares of the company & becomes the

owners. By being a part of organization workers wil try to take care of each & every issue.

5. Partnership – In this the workers will be treated as partners by the organization & they both mingle

together to take a decision.

6. Collective Bargaining – In this the workers will try to bargain the management in a collective

manner & by that an agreement will be made which will make them to work together.

7. Job Enlargement – In this the job of a worker will be enlarged by giving or allotting him more

responsibilities & finally it will give him a chance to say.

8. Empowering Teams – In this a particular team or teams will be given the chance to take part in

decision making & to implement the idea.

9. Job Enrichment – In this adding motivators will be there to the job to make it more rewarding, by

this the worker will try to work hard to achieve the goals or objectives.

10. Complete Control – In this workers acquire complete control of the management. But it is not

treated fully as participation in management because it won’t give the perfect result.

Evaluation of Workers Participation in Management: -

1. Whether industrial peace is there or not.

2. Whether proper industrial relations are there or not.

3. Whether industrial democracy is there or not.

4. Whether human resources properly utilized or not.

5. Whether workers got full recognition or not.

Conditions for success of Workers Participation in Management: -

1. Participation should create conditions of work & also create legal relations.

2. There should be strong trade union to take part in collective bargaining & participation actively.

3. There must be effective system of communication.

4. There must be sufficient time to participate.

5. Workers should have proper intelligence & knowledge.

Grievance: - Grievance means any type of dissatisfaction arising out of factors related to an

employee’s job which he thinks unfair. It arises when an employee feels that something has happened

or is happening to him which he thinks is unfair, unjust or inequitable. In an organisation a grievance

may arise due to several factors such as,

a. Poor working conditions.

b. Violation of company rules & regulations.

c. Unfair treatment in promotion etc.

Causes: -

I. Resulting from Management: -

1. Wage rates.

2. Leave policy.

3. Overtime.

4. Collective agreement.

5. Disparity b/w skill of worker & job responsibility.

II. Resulting from Working Conditions: -

1. Poor safety & bad physical conditions.

2. Unavailability of tools.

3. Unavailability of proper machinery.

4. Negative approach to discipline.

5. Unrealistic targets.

III. Resulting from Inter – Personal Factors: -

1. Poor relationships with team members.

2. Autocratic leadership style of superiors.

3. Poor relations with seniors.

4. Conflicts with subordinates & colleagues.

Grievance Procedure: -

1. Step One – At this step a discussion is held b/w the two persons. A resolution will be done b/w them.

(3 days)

2. Step Two – If the member is not satisfied with the resolution the union may advise the supervisor

that the employee intends to proceed with the grievance. (7 days)

3. Step Three – If there is no satisfactory resolution at step two, the grievance may be referred to

standing committee by advising the standing committee to proceed with the grievance. (10 days)

4. Step Four – If there is no satisfactory resolution at third step then the issue will be referred to the

outside person in order to get one proper solution.

5. Step Five – If the problem is not settled, then in this step all will come together in order to take the

final decision.

Machinery available for redressal of grievances: -

1. Conformity with statutory provisions – Considerations must be given while designing grievance

procedure.

2. Un – ambiguity – Every aspect of grievance procedure should be clear. Everyone should know

whom to contact.

3. Simplicity – Should be simple & short.

4. Promptness – Should be promptly handled & necessary action should be taken immediately.

5. Training – Supervisor & Union representatives should be properly trained in all aspects of grievance

handling, so that they solve it when it is a nominal complaint only.

6. Follow – Up – Should keep track of effectiveness functioning of grievance handling procedure &

make necessary changes to improve it from time to time.

Discipline: - Discipline is derived from the Latin word “disciplina” which means teaching, learning &

growing. In its original sense, discipline is systematic instruction given to disciplines to train them in all

aspects. It is a regulation & modulation of human activities to produce a controlled performance.

Forms of Discipline: -

1. To enforce rules & regulations.

2. To punish the offender.

3. To strictly follow rules.

4. To ensure smooth running of the organization.

5. To increase working efficiency.

6. To maintain industrial peace.

7. To improve industrial relations.

8. To develop a working culture which improves performance.

Indiscipline: - Indiscipline in any organisation means that the employee or worker is not following the

rules & regulations of the organization perfectly. It will try to happen because of lot of problems or may

be because of lot of causes.

Causes: -

1. Lack of effective leadership.

2. Varying disciplinary measures.

3. Defective supervision.

4. Lack of well – defined code of conduct.

5. Divide & rule policy.

Types of Punishments: -

1. Oral Warning – When an offence is not that serious or when an offender is a 1st offender, he can be

given oral warning. The human resources person invites him, talks to him, cautions him & warns him to

give up from such actions in the future.

2. Written Warning – When the offence committed by the employee is not an offense that you can just

warn him verbally & let him go, he is issued a query. He replies the query & explains reasons for his

action. After considering his response, a written warning also is issued to him & a copy of the warning

letter also documented in the staff file.

3. Loss of Entitlement – In some cases, the offender may not be paid any allowance or bonus due to

him to punish him for an offence committed.

4. Suspension – If an offence is strong, the employee may be suspended without pay. Depending

upon the level of offence the suspension may take up to two months or more without pay.

5. Demotion – A staff can be demoted from his position because of indiscipline. If a manager for

instance keeps on coming to work late, how will he lead & control subordinates? So the best way is to

demote him.

6. Termination of Appointment – When an employee commits an offence that the company cannot

forgive, his appointment may be terminated.

7. Dismissal – This is the strongest action that can be carried out on an offender. When an employee

gets involved in fraud, stealing, illegal businesses etc the firm may have no other option left than to

dismiss him out rightly.

Measures for dealing with Indiscipline: -

1. Reasonable & clear rules & regulations.

2. Workers should be involved in framing rules & regulations so that they willingly accept the rules.

3. Prior notice of the consequences of breaking rules.

4. Consistency & uniformity of punishment.

5. Respect for the human personality.

6. Management personnel should set high standards.

Domestic Enquiry Procedure: -

1. Issuing charge sheet.

2. Calling for explanation.

3. Considering explanation.

4. Giving notice of an enquiry in case of unsatisfactory explanation.

5. Enquiry in to charge.

6. Recording of findings by an enquiring officer.

7. Punishment decision.

8. Communication of punishment.

UNIT - IV

Dispute: - Dispute in general manner means an argument or disagreement about something important.

It will happen when ideas & thinking nature of two people will be different.

Industrial Disputes: - Industrial Disputes are organized protests against existing terms of employment

or conditions of work. According to Industrial Disputes Act, 1947 an industrial dispute means “any

dispute or indifference b/w employer & employer or b/w employer & workmen or b/w workmen &

workmen, which is connected with the employment or non – employment or terms of employment or

with the conditions of labour of any person”. In practice Industrial dispute mainly refers to the conflict

b/w employers & their employees. An industrial dispute is not a personal dispute of any person. It

generally affects a large number of workers community having common interests. If once dispute is

occurred it will try to take a lot of time to the organization to solve it, until the problem is solved the

organizational work will be completely disturbed.

Causes of Industrial Disputes: -

1. Low income.

2. Prices rising constantly.

3. Unsafe working conditions.

4. D.A. has no correspondence increase.

5. Employees find it extremely difficult to get leave with pay.

6. Employees giving more value to self respect.

7. Bonus not paid or not paid on time.

8. Unfair relieving of employees from jobs.

9. Trade Unions not recognised by industries.

10. Replacement of workers by machinery.

11. Political party’s involvement in trade unions causes divisions & unnecessary tensions.

12. Dishonest mid – level management.

Consequences of Industrial Disputes: -

1. Unrest & unnecessary tensions engulf the hearts & minds of people involved – labourers &

management.

2. Economic loss due to conflicts because it may result in strikes & lock – outs. This causes low or no

production resulting in industrial loss.

3. Industrial losses may cause economic depression because many industries are interlinked. A

problem in one industry may drastically affect another industry.

4. The lives of low – level labourers become worse when they are out of work. They may be the only

working member of the family & their joblessness may lead everyone in the family to poverty.

5. When industrial conflicts get out of hand, they become a threat to peace & security.

Trends: -

1. Strike – Strike is a very powerful weapon used by trade unions and other labor associations to get

their demands accepted. It generally involves quitting of work by a group of workers for the purpose of

bringing the pressure on their employer so that their demands get accepted.

2. Lockout – Lockout means temporary shutdown of the factory by the employer, but not winding up

(permanent) of the factory. Lockout of the factory maybe happened due to the failure in the

management affected by internal disturbances or maybe by external disturbances.

3. Gherao – Gherao is a form of industrial action in India In which workers imprison their employees on

the premises until their demands are met.

4. Lay off – Suspension or termination of employment (with or without notice) by the employer or

management. Layoffs are not caused by any fault of the employees but by reasons such as lack of

work, cash, or material.

5. Retrenchment – Retrenchment means a permanent termination of the services of an employee for

economic reasons in a going concern. An employee to be retrenched is required to be given three

months notice before his retrenchment or in lieu of the notice he must be paid his remuneration for the

period of the notice. The retrenched employee is entitled to get gratuity payment from his employer.

6. Closure – Closure’ Means Permanent Closing Down Of A Place Of Employment Or Part Thereof.

[Section 2(Cc)]. - - Thus, Closure Can Be Of Part Of Establishment Also. - - 60 Days Notice Should Be

Given For Closure To Government, If Number Of Persons Employed Are 50 Or More. 60 Days Notice

Is Not Necessary If Number Of Persons Employed Are Less Than 50. [Section 25FFA]. Compensation

Has To Be Given As If The Workman Is Retrenched. [Section 25FFF(1)]. - - If Number Of Workmen

Employed Are 100 Or More, Prior Permission Of Government Is Necessary For Closure U/S 25-O. 

7. Unfair Labor Practice.

Prevention of Industrial Disputes in India: -

1. Model Standing Orders: - Standing orders define & regulate terms & conditions of employment &

bring about uniformity in them. They also specify the duties & responsibilities of both employees &

employers there by regulating standards of their behaviour. Under Industrial Disputes Act, 1947 every

factory employing 100 workers or more is required to frame standing orders in consultation with the

workers.

2. Code of Industrial Disputes: - It defines duties & responsibilities of employers & workers. The

objectives of code are,

a. To settle disputes by negotiation.

b. To eliminate violence.

c. To maintain discipline in industry.

d. To avoid work stoppage.

e. To promote co – operation b/w parties concerned at all levels.

3. Works Committee: - Every industrial undertaking employing 100 or more workers is under an

obligation to set up a works committee considering equal number of representatives of employer &

employees. According to Indian Labour Conference works committees are concerned with,

a. Educational & recreational activities.

b. Safety & accident prevention.

c. Occupational Diseases & protective equipment.

d. Conditions of work such as ventilation, lightening etc.

e. Administration of welfare activities.

f. Amenities such as drinking water, canteen, dining room etc.

4. Joint Management Councils: - Just to make a start in labour participation in management, the

government suggested in its Industrial Resolution 1956 to set up Joint Management Councils. It

consists of equal number of members from workers & employers (min 6 & max 12). Decisions of the

Joint Management Councils should be unanimous & should be implemented without any delay. Its

objectives are,

a. Satisfy psychological needs of workers.

b. Improve welfare measures.

c. Increase work efficiency.

d. Increase relationship b/w workers & managers.

5. Suggestion Schemes: - In this type workers are invited & encouraged to offer suggestions for

improving the working conditions of the organization.

6. Joint Councils: - Joint Councils are set up for the whole unit & deals with matters relating to

optimum production & efficiency & the fixation of productivity norms for man & machine as a whole. In

every industrial unit employing 500 & more workers there should be a Joint Council to look,

a. Optimum use of raw materials & quality of finished products.

b. Optimum production, efficiency & function of productivity norms of man & machine.

c. Preparation of schedules of working hours & of holidays.

d. Adequate facilities for training.

e. Rewards for valuable & creative suggestions received from workers.

7. Collective Bargaining: - It is a process in which the representatives of employer & employees meet

& attempt to negotiate a contract governing the employer – employee – union relationships. It involves

discussion & negotiation b/w two groups as to the terms & conditions of employment.

8. Labour Welfare Officer: - The Factories Act, 1948 provides for the appointment of a labour welfare

officer in every factory employing 500 or more workers. He looks after all facilities in the factory

provided for the health, safety & welfare of workers. He serves as a communication link b/w employer &

workers & contributes towards healthy industrial relations.

9. Tripartite Bodies: - Several tripartite bodies have been constituted at central, national & state levels.

The Indian Labour Conference, Standing Labour Committees, Wage Boards operate at central level.

State Labour Advisory Boards are operating at state level.