Notes HRM

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 27

CIA-1

Designing a pay Structure

Market Pay Line

20th Dec

CIA-2

Critical Analysis of employee health in the ORG

24th Jan

3rd CIA

Case study on industrial dispute

Detailed case study report 27th

Introduction 2 pages max

Take maximum 6-7 literature

Title

Intro- end of intro to have an extension (rational about the need of the present study)

Objectives of the study

Research question

hypothesis

ROL- 6-7

Method-

Research design

Sample- random, non-probability, exclusion criteria

Procedure –

Ethical aspects/concerns

Data collection procedure

Variable

Measures

Operational definition- presenting in a measurable term

Statistical analysis
Expected results

Possible implications

Timeline

Budget

references
Compensation and benefits
Compensation impacts the attitude and behaviour.
Influences employee branding
Effectiveness
Performance
Motivation
Gupta & Shaw study. Meta-analysis on 40 years. Lack of research in the area and
compensation and benefits
Compensation can be monetary or non-monetary
Pay structure (fixed and variable pay) directly associated with monetary pay

Three factors taken into consideration for setting compensation (Labour market conditions,
legal statutory, company or ORGs capacity0
OBJECTIVES OF DESIGNING COMPENSATION PLAN
business objectives
matching compensation to fair and equitable
attract qualified candidates
retain present employees
comply to legal needs

Minimum wages 1948- blue collar


Payment of wages act 1936- blue collar
Adjudication of wages dispute- flexibility with the blue-collar workers
Payment of bonus act 1965

Designing a compensation plan


Job evaluation directly related to compensation design
Job in relation to other jobs within the ORG and externally
Finding jobs to be evaluated
Analysing and preparing JD for Key jobs
Classifying the job
Reviewing periodically
Systematic
Fair, rational and unbaits

METHODS OF JOB EVALUATION


Ranking – Classification
Classification – Classification
Factor comparison – analytical- comparing one job with the other
Point Method – analytical-
Step 1- identifying compensable factors
step 2- factor degrees are numerically scaled
step 3- factors are numerically scaled based on skill, effort (physical mental), responsibility
and working conditions
step 4- factors degrees are compiled into points
step 5- each weight reflects the relative importance of job
Compensation design
Job analysis
Job eval
Pay policy identification-
May vary across job, family, and levels
Indicators are criteria for pay policy
Leading indicators- compensation is designed based on performance goals
(normally uses the 9box grid)
Lagging indicators- compensation is designed based on competitive market conditions
Market survey analysis-
Done through a tool known as benchmarking
contributes to the PPI
comparison of compensation a specific job across employers and organization
Pay structure design
Pay structure decisions
The tools that you have used to manage employee compensation
Understanding competitive labour and product market

Compensation- fixed and variable


benefits are closely aligned- fringe benefits additional plans that are supplementary to the
salary pay
commonly includes- traditional benefits include PF, medical insurance, travel allowance etc
(not prominent in orgs with less than 10 employees).
Unconventional fringe benefits include-
leased car
BYOD- buy your own device
Health and medical reimbursement
Education options
Day care options
INCENTIVES
Purpose-
Create meritorious performance/bench mark performance
To recognize the time quality and cost incurred through a performance
Increase productivity
Increase morale
Objective-
May vary based on billable and non-billable jobs, certain operational j-jobs are also
incentivising
To reduce labour cost
To create or map efficiencies
To build a productivity formula
Prerequisite-
Incentive design should be aligned with the employee expectation
Incentive scheme should be based out of scientific work
Indirect workers should also be covered
 Incentive framework changed over a general period of 5 years, volatile factors such as
responsibility and change in technology will also effect
Time and cost
Amounts being utilized provision to amount pay
Review your incentives periodically

*Enhances personal accountability


INCENTIVES PLANS
Approaches
Merit pay- once a year part of base salary
Variable pay- cash or year end bonus UN affects base pay
Skill based pay- skill rewarded, job rotation, training
Competency Based- organizational objective
*considers job families, broad banding
Incentive Framework
Purpose and types- how should it support business performance, individual or team
Participation and eligibility-position that impact performance, maintain internal equity by
identifying potential levels/positions, compare with similar type companies to identify
eligibility
Measures and performance target- process for selecting measures, what criteria are chosen
for measuring performance, goal setting process
Funding- budget, self-funded, discretionary, blended
Pay-out mechanism- calculation of awards, frequency of awards, payment made (cash
differed cash stock), cost modelling
Communication- How do employees learn about the programs
Governance and administration- how is it evaluated (manager, HR, Forced), how review and
calibration is done, who monitors, manage day to day aspects, what in the case of termination
Key Inputs to Incentive Design
Sustainable incentive plans = business strategy + employee value exchange + market trends
and best practices
Job level and potential incentive percentage
Limited impact- 25% of base pay
Moderate – 30% of base pay
High impact- 50% of base pay
Performance Measure selections
Nature
Hardiness
Standard
Timing
Level
Nature- what specific results should be measured? aggregation for reward distribution
Organization
Mission strategy and objectives
Division/department
Objective in support of organization
Employees
Articulate what has to be achieved (job responsibilities and objectives)
Articulate how success will be measured
Hardness- qualitative or quantitative basis

Revenue per quarter vs expectation per quarter


lead and lag period identified by understanding the business cycle
incentive may be higher (sales drive companies), lower (operations) or proportional
(Hospitality) to the salary.

Criterion
80% Below expectation
90%
100% Expectations
105%
110% Higher than expected

4 types of incentive scheme


Earnings vary in same proportion as output
Earnings vary less proportionate then output
Earnings vary Proportionately more than output
Equal- Straight piece work method, Standard hours
Low-Halsey plan, Rowan plans, Bark scheme
Higher – high piece rate, high standard hour, tailors differential piece method

Real time performance management


Prioritize engage and grow
Individuals will set performance priorities
Create a dead line
Identify stake holders
Provide feedback
Team sharing
Employee Relations/Industrial Relations- Unit 2
Relationship between organization and employees.
Treats employee as resources
Before 91 highly related to labour laws
Includes-
Collective bargaining
Welfare
Health and safety
More prominent in industries which make the employees prone to hazards and accidents
Deals with grievances
Purpose
To enhance accountability
To boost morale
To build the need of recognition
To address grievances
Other factors Effecting ER
Institutional factors-
HR policies and practices,
Organizational Culture and Climate,
Adaptability to change,
codes of conduct,
union practices
Economic factors-
Nature of ownership (public/private etc)
Nature (mindset, source of labour) and composition of workforce
Labour Market
Level of unemployment
Technological factors-
Rate of change of technical system
Work method depending on technology
Ability of people to cope with change
Psychological factors-
Owners/top management attitude
Perception of workforce
Workers attitude
Motivation, interest, satisfaction
Political and legal factor-
attitude of the govt
labour laws
ruling party
Global factor-
Foreign work force

Approaches for ER (NOTES MISSING)


Psychological app
Sociological app
Human relations app
VV Giri approach and Gandhian Approach
Giri- process and systems,
Mutual negotiation of disputes
Collective bargaining-
bipartite machinery- two groups of people who come when there is conflict
manager from grievance department, HR
one from trade union one from shop floor and one consultant
voluntary arbitration-
inclusion of third-party intervention (usual a legal person)
Gandhian- management should follow the principle of trusteeship (transparency)
Employees don’t have scope and facilities as compared to management. Bring in
people who you actually trust. In organization where, political involvement is low
Maintaining a peaceful environment through regular interactions and addressing their
needs and concerns
Guidelines for Gandhian-
Workers should avoid forming unions in philanthropic organization
Workers should seek redressal for reasonable demands through collective
action
Workers should resort to strike only if all legitimate measures have failed
Strikes should be non-violent
Involve a third party (voluntary arbitration) when conflict resolution process is
static

Types of ER policies
Adversarial- the ORG decides what to do and employers fit in policies and practices
according to the ORG objective, employees can only excessive the power to refuse to
cooperate
Traditional- day to day working relationship, workforce reacts through its
representative member
Partnership- involved in drawing and execute the policy and retains the right to
retain the same
Power Sharing- involves day to day relationship is practice and what strategic
decision you are making.

Scope of Employee Relation Policies


Trade union recognition- how many do I recognize
Collective Bargaining system
Employee Relation Procedure- grievance, decision, code of conduct
Participation and involvement- defining in what all area of decision-making process will the
employees be involved
Partnership- terms and condition of employment
Working arrangement- job based or functional flexibilities

PSE
Dominance of tripartisim
Heavy legalism
Fragmented and politicized trade unions
Labour management cooperation
Industrial relations in public sector undertaking

Grievance Management
Related to emotional valance (added value)
Any type of dissatisfaction or discontentment arising out of factors related to an employee’s
job which he/she thinks are unfair.
May arise in three strong areas
Policies- wage rates, leave policies, work timings, lack of career growth, role
conflicts, incongruence between responsibility and skill
Working conditions- physical environment, unavailability of tools resources or
maintenance, negative approach to disciplinary action
Due to interpersonal factors- poor interpersonal relationship within org, practice of
autocratic style of leadership, constant conflicts with peers.
Acc 15th session of the Indian labour conference in 1957 they established a systematic
grievance procedure in industry and 16th session lead to the development of a model for
grievance following are the 4 steps for the same-
Step 1- to create a body for grievance with departmental representatives and representatives
from management, a response needs to be given with 48 hours
Step2- if the departmental representative fails to provide a solution it has to be taken to the
head of the department and response should be given within 3 days
Step3- if the HOD fails to response the issue is taken up by grievance committee and should
be addressed within 7 days
Step4- Voluntary arbitration
Disciplinary management
To provide a fair clear and useful tool for correcting and improving performance problems
And to assist management in handling unacceptable personal conduct
4 types
Insubordination
Unacceptable personal conduct
Unsatisfactory job performance
Gross inefficiency
Process
Oral counselling
Written letter
Suspension without pay
Demotion
Dismissal
Employee participation/Empowerment
Joint consultation committee- union intensive workforce
Joint decision making-
Establishing a harmonious relationship
to build solidarity among workers
having a creative and participative workforce
motivating employees
creating an ideology and philosophy of management

Quality Circles (seen in Toyota- based on the Japanese principle of Kaizen)


Small group of employees who meet periodically to identify analyse and solve quality related
issues using a system i.e. process that has a voluntary group of members which is manageable
in size and have regular interactions to create own agendas based on the theme of quality
Satisfies psychological needs
creates an expression of complete participation
improves quality of working life
participation
innovation
information
accountability
three step process to solution
identify
analyse
suggest solution
QWL
Compensation
Benefits
Managing time- flexi time
Social integration

Employee Health and Safety


Constitutional framework- law, allotted to the ministry of labour and employment, industrial
safety and health branch of the ministry discharges overall functioning, national policy on
safety, health and environment at workplace
Administrative framework- bodies (research institutions)
Implementation framework- risk assessment organizational
Evaluation framework – regulatory body
Risk assessment, accidents and work stress
HR as profit centre (reducing the cost of accidents)
Risk assessment process
Identify- through existing data
Evaluating the level of risk- through risk matrix (define levels, who gets directly impacted,
level of probability of an instance occurring)
Areas- people, finances, environment, public
Reactive measures-
Chance occurrence
Human error
Unsafe environment
Preventive measures
Job hazard analysis
Operational safety review
Personal protective equipment’s
Establishing safety policy
Behaviour based safety program
Health audits and inspections
Employee participation

Information processing
Cognitive ability

Wellness Programs
Evidence based wellness programs- done on a continues based
Conducting risk assessments and creating reports
Asserting people to use health related websites and apps
Introducing short campaigns
Hiring vendors
5 stage model-
Commitment from company leaders
Work scheduling
Creating health goals
Asking for help
Spreading the word
Measuring outcomes- (value of investment and return on investment)
Level of absenteeism
Employee morale, commitment
Talent retention
Work stress
Behavioural
Emotional- anxiety, depression, musculoskeletal
Social
1998 Substance use is 11.9% and 1.7% (men vs women)
2007 42% rise in women getting into substance abuse
Individual bullying
Vicarious bullying
Serial bullying
Training program
Legal provision awareness
Corporate wellness program
HR audit practices

UNIT 3: Industrial Disputes


Collective bargaining core element of trade unions
Negotiation skills important
DEF- organization made up of members and its membership comprises largely of working
class/workers
OBJETIVE-
To negotiate with employers on pay and working conditions
Discuss any major changes in workplace, M&A,
Discuss members concern with the employers
Provide members with legal and financial advice
Provide educational facility to Intervene in disciplinary and grievance procedures
Protect the right of the labour
Give power to the employees to communicate concerns
Create a participatory environment
Trade union act 1926-
16154 trade unions
9.18 million members
Bhartiya Mazdoor Samaj (BMS) largest trade union
Central trade union organization monitors all the unions
12 highly recognized trade unions
Structure
Functions with 2 primary principles
Bases of purpose- ideologically driven, reformist (business upliftment {collective bargaining,
harmony avoid strikes and lockout} and employee upliftment {welfare, benefit, morality,
intellectual) and revolutionary (anarchist, predatory, political union {redistributing the
wealth] and gorilla {violence, exploitation, non-cooperation}) ideologies

Bases of membership (militant and Fraternal)-


craft union- workers belonging to a particular craft and not the organization
Industrial union- based out of specific industries
Staff union-
General union

Militant- higher wages, better environment, rise in status (make temp into permanent
employment), protect victimization and injustice of labour
Fraternal- improve moral, generate self-confidence, encourage sincerity and discipline,
protect women workers from discrimination, provide opportunities for growth and promotion.
Reasons to join- have a greater bargaining power, instil a sense of security, to reduce
discrimination, platform for self-expression, betterment of interpersonal relationships
Trade union
Textile
Transport
Communication
Commerce
Tea plantation
Responsibilities-
Work closely with law
Listen to members view
To not pressurised non-members to join union
To vote in elections
To report problems to representatives
Constantly training the members on frameworks and policies

Problems
Uneven growth
Limited membership
Multiple unions
Outside leadership
Financial problems
Indifferent attitude of workers

Employee based
Employers Based association
Confederation of Indian industry (CII)- works towards the welfare of employers
Works closely with the trade unions
Bombay industrial relations act 1946- recognition of trade union
Criterion
Representation of union having a membership of not less than 25 percent of the total
employees in an industry
A qualified union should have 5 percent membership in an industry
Org can have a primary union this primary union should have a membership of 15% of
employees in an industry
Right to submit a dispute for arbitration
All India organization of employers
Employers federation of India

Function
Promote and protect interest of employers engaged in labour rich industries
Study analyse and share information related tot labour policy, labour management, collective
bargaining
Provide advisory role for establishing labour policy
To liaison with govt and representative members
Relationship between trade union and employer’s association
Framework for interaction
Trade unions have to abide by the trade union act of 1926
Forms a legalize frame work for the trade unions
Voluntary trade union (recognition irrespective of their legal support) and statutory trade
union (recognized only if they have a legal support)
Code of discipline 1958
Statutory membership that takes place
Verification
Check off- an undertaken given by the employee stating that they have formed a trade union
Secret ballot-
There is low political and public support that is affecting the base of trade unions in orgs
today
Low membership
Judiciary is questioning the right to go on a strike
Trade union is viewed as a militancy

Criterion for recognition


Create a space
Providing a space for right to sole representation
Creating a collective agreement term
Identify the membership of subscription
Holding a discussion with the departmental representatives within the factory or industry
Inspect previous agreements and back ground verification needs to carried out
Nominating representatives, for grievance and bipartite committee
Collective bargaining
Procedure by which the terms and condition of workers are regulated by agreement between
their bargaining agent and the employer
Requires a procedure
Requires an agent or a representation
Compromise
Smoothen out the power distribution
POWER-
settlement of disputes
negotiation
History
Began with the industrialization of India (19th century)
Become prevalent in the indigo plantation
Cotton mill in Bombay
Jute mill in Kolkata
Factories act 1883 led to workers getting importance- led to provision for working class
1890 first labour association- Bombay mill hand association
1905 printer’s union
1907 postal union
IMP.
Tata iron and steel established a procedural system- all India trade union of congress- 1920s
20th century
Character of trade union stated forming
Focused on economic development
Political support was prevalent and gave stability to the trade unions
IMP.
Ahmedabad textile labour association for textile mill and weavers- pioneered in setting up a
systematic collective bargaining system AILA
Brought about negotiation, voluntary arbitration, and mitigation process
Influence of Gandhi an approach was prevalent in this era
Indian labour organization was formed- 1990
Congress supports prevalent
Eventually all this led to registries and officially legalized trade unions
Machineries of settlement was established this included-
Court of enquiry
Board of conciliation
Induction of Labour officer
Features of CB
There exists a power relationship
Voluntary in nature flexible, collective and complementary
Dynamic (what is the issue) and Continues
Bipartite process
Works primarily through representation and may seem complex
Specific objective according to legal framework
To settle disputes or conflicts relating to wages and working conditions
To protect the interest of workers through collective action
To resolve the differences between workers and management through ovulatory negotiation
and amicable consensus
To Avoid third party intervention in matters relating to employment
Considerations
Wages and working conditions
Work norms
Incentive payments
Job security
Changes in tech
Transfers and promotion
Grievances
Disciplinary matters
Health and safety
Insurance and benefits
Steps
Identifying
Collection of data
Selection of negotiators
Climate of negotiation
Bargaining Strategies and Tactics
Enforcing the agreement
Understand the strengths of both the parties
Types of collective bargaining
Conjunctive or Distributive Bargaining- referred to as zero sum game i.e. one wins the other
loses. Union members have one strong area of concern which either becomes their target or
resistance point
Cooperative or integrative bargaining- works towards as the interest of both a Win-Win
situation
Productivity bargaining- usually happens in the manufacturing set ups. Negotiation with
respect the no. of units to be produced
Composite-???
Methods to implement collective bargaining
For the industry- should collaborate with the govt to ensure best practices in collective
bargaining. Create positive attitude among workers (leadership training, culture training)
For the worker- the members should build awareness among the workers the rights of
employee, nature of engagement in the specific industry, economical and financial condition
of the economy. Reduce the influence of the political leaders on the workers.

Employee and HRM services


Personnel Records- soft storage or physical record.
Demographic, tax related, certificates etc goes as physical copies
Appraisals go in as soft copy form.

Records kept for account progress


To Identify fact and figures
To have a comparison between employees to detect errors and frauds
Legal requirement
Policy decision
For settling disputes
And other business aspects
Should be a Cost-conscious mechanism -
Verification that can be carried out using personnel records
Classify the employees within the ORG system
Justification to the role that is being given to the individual-
JDs are an important part of the Documentation-
Attendance record
Payroll
Rating
Training
Health record
Grievances
Disciplinary issues
Interview results
Job applications
AUDIT PROCESSES
Attitudinal surveys- referred to as a dip stick
Indices
Indicators
Statistical ratio
Gross numbers

Creating a time frame


Departmental variations
Trend lines, frequency distribution and correlation
Detail report AKA HR audit Report
Results
Effectiveness ratio=no. of employees-output
Sale per department
Output per hour
Accidents ration- frequency of accidents, loss of time, accident compensation
Types and nature of accidents
Organizational labour relation ratio.
No. of disciplinary action
Awards lost due to gradience or disciplinary issues
Turnover /absenteeism ration.
Employment ratio-
Can be indicated by looking into the age distribution of your employees.
The length of service
No. of employees moving into a managerial role
Maternity leaves

Identifying a challenge within the org- e.g. unplanned leaves


Performance criteria- reduce unplanned leaves, monitor sick leaves, supervisor’s information
on leaves.
Monitoring sick leave practices and
BENCH MARK BEST PRACTICES BY REWARDING THEM DON’T FOCUS ON
PENALIZATION.
Monitoring attendance weekly
Sick leave format
Apply within 2 days
Compulsory medical evidence should be provided
Staff rewards
Creating an internal diagnostic checklist to identify some of the best practices in the
organizations. measuring things such as-
Acceptance testing
Ae employees aware of existing process tools and practices
Use a survey form
Accessibility to the tools the process and practices.
Possibility of employees avoid engaging in them.
Accuracy
Frequency of errors.
Auditable/measurable
Maintainability, sustainability, dependability. Sustainability.

You might also like