SUBJECT NAME Employee Relations Management

SUBJECT CODE MGT 645

SUBJECT CREDITS 4

This course helps you to understand the dynamics involved in Employee

Relations which includes Industrial Relations. Managing people in
organizations necessarily involves relations between the two individuals – the
employee and the employer (Manager and/or colleague) or two groups – the
employers and the employees. To the extent the two individuals and two
groups often have different interests, the relations take different forms and
dimensions – sometimes cooperative, sometimes collaborative, and
SUMMARY/ sometimes conflicting. The realization of the organizational vision, mission
OVERVIEW and objectives of the organization requires the continuous presence of
harmonious relations between the two. The management, particularly, the HR
management, strives to develop relations that facilitate the development and
maintenance of cooperative or positive relations between the two sides.

The State plays a key role in managing the relations between employers and
employees by passing appropriate employment laws and ensuring its
compliance from both employers and employees. Therefore, understanding
employee relations is imperative on the part of the students of management.

a. To enable the students to understand the nature of employee relations.

b. To help them to understand the various institutions and procedures in
industrial relations and the dynamics of their functioning.
c. To help them to understand why employees form their organizations and
AIMS how to manage the employee organizations.
d. To help them to understand the legal context of employee relations to
familiarize them with the e m p l o y e e ’ s ( workers’) rights and managerial
obligations

CORE LEARNING OUTCOMES

LEARNING OUTCOMES ASSESSMENT CRITERIA

SL.
On completion of this unit you should be able To achieve the learning outcomes, you
NO
to: must demonstrate the ability to:

Will be familiar with the roles of the stakeholders and Case analysis by students will indicate the
the complexity involved in managing stakeholders’ depth of knowledge about the different roles
1 expectations including the legal requirement in of stakeholders and the complexity involved
Industrial Relations. in Industrial Relations.

1
 Will be able to ensure that principles of natural
2 justice are followed while conducting a departmental Group presentation on various
enquiry for indiscipline actions by employees themes and cases.
(workers).
Students’ analysis of employment law
Will be able to remember the important provisions cases and decisions along with reasons will
3 (and interpretations) of employment laws indicate their knowledge and interpretation
of employment laws in classroom and
examination.
Response to questions /incidents/
4 Will know how to manage Industrial
issues relating to Industrial Relations and
Relations in Unionized organizations.
Labour Laws in Viva-Voce
Will understand that non-handling or mishandling of
employee grievance will lead to the formation of
5 Trade Union in the old economy (manufacturing
sector), whereas in the new economy company (IT
Sector) this will lead to higher employee turnover
rate.

The teaching methods will consist of formal lectures, case study analysis,
role plays. Experts and practitioners will be invited to participate in the
course as guest lecturers.

APPROACH TO Students must go through the basic material i.e. text and reference books
LEARNING before attending the class. This helps the students to participate effectively
in-class discussion and analyze the case effectively.

As is appropriate at Masters’ level, students will also be expected to read

beyond texts assigned, and to identify on their own further sources of
information for complementing their studies.

The case analysis will indicate the context and depth of understanding of
ASSESSMENT the complexity of Industrial Relations. Discussion of labor law
STRATEGY cases/incidents in class will indicate their ability to interpret the law.
Response to questions in Viva-Voce indicates conceptual clarity.

NO ASSESSMENT DESCRIPTION OF WEIGHT DURATION AND MARKS

METHOD ASSESSMENT % OF EXAMINATION)
METHOD

1 DSA Written examination 20 2 hours and 50 Marks

2
 2 AT Class attendance 5 Throughout the course
Case study/ Assignments,
Presentation on various
3 CS / PR / OR / topics, Viva- voce/ Quiz, 25 Throughout the course
CP Participation in class
activities

Semester
4 Written 50 3 hours and 100 marks
End
Examination
Examination

UNIT NO. TOPIC SESSION

Module 1- Introduction: Employee Relations Management 1,2,3,

Introduction, Overview of Employee Relations Management,
Importance of Employee Relations Management, objectives of
Employees Relations Management, Difference between Employee
I Relations and Industrial Relations Management, Characteristics,
aspirations and concerns of employees in the service sector and
workers in the manufacturing sector.
Impact of Liberalization, Privatization and Globalization (LPG)on
Employee Relations Management

Module 2- Core Issues of Employee Relations Management 4,5,

Issues of ERM in the Manufacturing Sector, Transportation Sector, IT
Sector, Hospitality Sector, and Call Center Sector.

II The Concept of working from home - Benefits to employers and

employees, related issues and challenges.
Importance of Psychological Contract-interest and expectations.
The Contract Labor – Controversial Issue

3
 Module 3-Industrial Relations Management 6,7

The concept of industrial relations – meaning, definition, objectives, the

systems framework, Substance of a sound industrial relations system;
theories of Industrial relations: Unitary, Pluralist, Radical and
Trusteeship; Partnership model for sound Industrial Relations.
Globalization and Industrial Relations.
III
Role of different participants – Management, Trade Union, State and
Judiciary, Constitution of India, and Industrial Relations
Managing Good Industrial Relations- Ten golden rules for good
industrial relations. Role of ILO in Industrial Relations.
(Refer chapter 2, 3, 10 & 22 of the prescribed textbook & www.ilo.org).

Module 5 - Industrial Conflict: 8,9,10,11,12

The concept of industrial conflict – meaning, definition,
manifestations, magnitude, causes and consequences of industrial
conflict; management of industrial conflict; Unfair labour practices,
industrial relations procedures and methods for resolving disputes –
conciliation/mediation, adjudication, voluntary arbitration, industrial
relations machinery – labour courts, tribunals and appellate courts.

Industrial Disputes Act, 1947

Definitions, Authorities under the act, Notice of change, Condition of
service to remain unchanged, Strike and lock-out-its prohibition,
Illegal strikes and lock-outs, Lay-off and Retrenchment - Section-
25A,25 B, 25 C, 25 D, 25 E, 25 F, 25 FFA, 25 FFF,25G, Offence &
Punishment U/S- 26 to 31

Industrial Employment (Standing Orders) Act, 1946.

Applicability, Matters to be provided in Standing Order, Conditions
V
for certification of Standing Order, Procedure for certification of
Standing Order, Date of operation of Standing Order, Posting of
Standing Order, Submission of Draft Standing Order, Temporary
application of Model Standing Order, Payment of subsistence
allowance to the suspended workers and penalties.

(Refer chapter 14 from the prescribed Text and Bare Acts on Industrial
Dispute Act, 1947 & Industrial Employment (Standing Orders)
Act,1946)

4
 Module 4 – Trade Unions and Trade Unionism: 13,14,15,16,
Concept of trade unions- meaning, definition, objectives, functions, and
characteristic features; why trade unions?; trade unions as
organizations; the structure of trade unions; the politicization of trade
union movement and trade unions; trade union recognition;
management of trade unions – organization, registration, trade union
leadership, union democracy; managerial unions and unionism; Non-
union firms (Refer chapter 5,6 &7 of the prescribed textbook).

Trade Unions Act, 1926:

IV Objectives, definitions - Trade union, workmen, Trade or Industry
dispute, Triple test, Registration of Trade Union, Cancellation of
registration, Immunity from criminal and civil liability, the general fund
and political fund, Minors and Trade union, Returns to be filed,
Disqualification of office bearers, punishment U/S 31 and 32 (Refer
Bare Act on The Trade Union Act,1926)

Module 6– Collective Bargaining: 17

The concept of collective bargaining – meaning, definition, pre-
requisite of successful collective bargaining; the process of collective
bargaining, issues for bargaining; Collective bargaining in Indian
VI industries – issues and problems (Refer chapter 8 from the prescribed
textbook).

Module 7: Grievances and Discipline Handling 18,19

Introduction, Managing Employee Grievance, nature & causes of
VII Grievance, Grievance procedure and Managing Discipline. (Refer
chapter19 from the prescribed textbook).

Module 8: Managing Redundancies: 20,21

Rightsizing – Legal framework, Approaches to deal with workforce
VIII
redundancy, proactive initiatives and Reactive Response to
Downsizing, Voluntary Retirement Schemes (VRS) (Refer chapter 20
from the prescribed textbook)
Module 9: Legal Framework of Employee
Relations in India: The Factories Act, 1948
Important definitions, Applicability, Registration, Provisions
regarding Safety, Health, and welfare of workers, working hours,
spread over and overtime for adults, Employment of young person,
IX
Annual leave with wages, Offence and Penalties.

Employees State Insurance Act, 1948

Objectives, Applicability of the act and scheme, Coverage, Rate of
contribution of wages, Benefits to employees, manner and time limit
for making payment of

5
contribution, wages for ESI contribution, contribution period and
22 to 36
penalties

Employees Provident Fund & Miscellaneous Provisions Act 1952

Objectives, Eligibility, Applicability, Rates of contribution, damages
and penal provisions

Maternity Benefit Act 1961

Objectives, coverage, conditions for eligibility of benefits, cash
benefits, non- cash benefits, leave for miscarriage and tubectomy
operations, Prohibition of dismissal during pregnancy, Failure to
display the Extract of the act.

Minimum Wages Act 1945 and Payment of wages Act, 1936

Important provisions of the Act

The Payment of Gratuity Act, 1972

Applicability, Wages for calculation, Employee, qualifying period,
display of notice, nomination, mode of payment, Maximum ceiling,
Recovery of Gratuity, Forfeiture of Gratuity, protection of gratuity
and penalties.

The Karnataka Shops and Commercial Establishment Act, 1961

Important definitions, provisions relating to leave, Holidays, salary,
working hours, spread over of work, Work timings etc.

The payment of Bonus Act, 1965

Applicability, Establishment, computation of available surplus,
components of Bonus, Separate establishment, Eligibility,
Disqualification and deduction of Bonus, payment of minimum
Bonus, Time limit for payment of Bonus, Maintenance of Registers
and Records, penalties.

The Workmen Compensation Act, 1923.

Objectives, Definitions-Employee, Dependent, Applicability,
Disablement-Partial and Total, Employer liability for compensation,
Notional extension to premises, Occupational disease, Accident
Notice, Employer-not liable for compensation.

The Contract Labour (Regulation & Abolition) Act, 1970

Scope, objectives & definitions, Principal Employer, Liability of a
Principal Employer, Responsibility of a Contractor.

Sexual Harassment of Women at Workplace (Prevention,

Prohibition and Redressal) Act, 2013
Important definitions – aggrieved woman, appropriate
government, chairperson, domestic worker, employee,
sexual harassment.
Constitution of internal complaints’ committee, duties of the employer
(Refer the respective Bare Acts and Elements of Mercantile Law by
N.D.Kapoor)
6
Pedagogy:
This course will be based on interactive lectures and class activities.
Students should come to the class after thoroughly reading the
assigned portions from the textbooks. A variety of pedagogical
methods such as class lectures, presentations, and case analysis, role
plays will be used.

7
Recommended Resources
Prescribed Textbook:

Industrial Relations by C.S.V. Ratnam, Oxford University Press, New Delhi, Latest Edition
References:
Elements of Mercantile Law by N.D.Kapoor, Sultan Chand & Sons
Employee Relations ManagementBy P. N. Singh, Pearson Publications
Work organization and employee relations in Indian call industry, 2006 -
library.oapen.org centers by Phillip Taylor and Peter Bain.
Managing employee relations through strategic human resource management: Evidence from two Tata
Companies, Debi S. Sain Indian Journal of Industrial RelationsVol. 42, No. 2 (Oct. 2006),

WWW.ilo.org
BARE ACTS
Trade Union Act,1926, Industrial Disputes Act, 1947, Industrial Employment (Standing Orders) Act,
1946.The Factories Act,1948, The Shops and Establishment Act,1953, Minimum Wages Act 1945, Payment
of wages Act,1936, Employees State Insurance Act,1948, Employees Provident Fund & Miscellaneous
Provisions Act 1952, Maternity Benefit Act 1961, The Payment of Gratuity Act,1972, The payment of Bonus
Act,1965, The workmen compensation Act 1923, The Contract Labour (Regulation & Abolition) Act, 1970,
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,2013.