ASSIGNMENT

EMPLOYEE RELATIONS MANAGEMENT

Q1. Define Strategy. Describe the different strategy levels in an organization?.

Ans. Johnson and Scholes define strategy as “The direction and scope of an

organisation over the long-term; which achieves advantages for the organisation

through its configuration of resources within a changing environment, to meet the needs

of markets and to fulfil stakeholders’ expectations.1”

Different Strategy Levels in an Organisation Organisations have different levels of

strategic decision making. Although these levels are inter-related, each one of them has

its own scope and reach. The different levels of strategy in an organisation are at the

corporate level, business-unit level, functional level and people level.

Corporate level strategy Corporate level strategy is usually devised at the

board level. It defines the following for an organisation:

The overall mission

The game plan

The management of the business portfolio

The priorities of each business unit regarding resource allocation

The structuring of the business

The methods of financing the business

The alliances to be made

The acquisitions/mergers to be performed.

Business-unit level strategy Business-unit level strategy is mainly

concerned with how the organisation gains advantage over its competitors. It

deals with the following:

The methods the organisation uses to compete in particular markets

The new opportunities that the organisation identifies or creates

The products or services to develop

The customers that the organisation targets.

Functional level strategy Functional level strategy is concerned with how

different units of the business (marketing, finance, manufacturing, personnel)

transform corporate and business level strategies into operational goals.

According to Johnson and Scholes, functional strategy describes “how the

component parts of an organisation in terms of resources, processes, people and

their skills are pulled together to form a strategic architecture, which will

effectively define the avenue”. 2

People strategy People strategy aims to match the activities of an organisation

with its human resources. An effective strategy for people management is vital to

the success of an organisation. Research carried out by the Institute of Work

Psychology and the Centre for Economic Performance shows a clear link

between the adoption of good human resource business practices and improved

performance. The research proves that focussing on key people management

issues will improve productivity and profitability.

Q2. Define Organizational Culture. Discuss the dimensions of organizational

culture. Explain Charles Handy’s classification of organizational culture?.

Ans. Organisational culture describes the psychology, attitude, experiences, beliefs

and values of an organisation. According to Hill and Gareth (2001), organisational

culture is defined as ‘the specific collection of values and norms that are shared by

people and groups in an organisation and that control the way they interact with each

other and with stakeholders outside the organisation’.4 An organisation is said to have a

strong culture if its employees are aligned with the organisational values. Organisations

that have a strong culture function efficiently. On the other hand, in organisations that

have a weak culture, the employees are not aligned with the organisational values and

control has to be exercised through extensive procedures and rules.

The different dimensions of organisational culture are as follows:

Power distance: This is the degree to which there are differences in levels of

power. A high degree indicates that some individuals have more power than

others. A low score shows that people have more or less equal rights.

Risk avoidance: It reflects how the much organisation is willing to take risks.

Individualism versus collectivism: Individualism refers to the extent to which

people stand up for themselves. Collectivism refers to the interdependence of

individuals in a group.

Gender differences: It concerns the traditionally accepted male and female

values. For example, male values include competitiveness, assertiveness and

ambition.

Long- versus short-term orientation: Perseverance is emphasised in long-

term orientation while immediate profits are emphasised in short-term orientation.

Charles Handy’s classification: Charles Handy (1972) classified organisational

culture as follows:

Power culture: Power lies in the hands of a few people. Few rules and a little

bureaucracy are present, but decisions are quickly taken.

Role culture: A highly defined hierarchical structure is present. The position

decides the power wielded.

Task culture: Teams are formed to solve problems. Expertise of a person

decides the power of the individual. Such organisations have a matrix structure.

Person culture: Every individual believes that they are superior to the

organisation. Such organisations cannot succeed.

Q3. Define Disciplinary procedure. Explain the various factors to be considered

while analyzing a disciplinary problem?.

Ans. Disciplinary procedure is a step-by-step process which an organisation follows

while dealing with indiscipline of any kind. It is a good practice for organisations to

establish a proper disciplinary procedure in order to ensure just decisions. A disciplinary

procedure includes a formal system of documented warnings and hearings, with rights

of representation and appeal at each stage. Disciplinary procedures have to be fair and

transparent in order to avoid legal complications. Caution has to be taken as disciplinary

procedures have to be directed against the employee’s behaviour rather than the

employee themselves.

Factors analyzing a disciplinary problem

(a) Seriousness of the problem: Consider the severity of the problem.

Insubordination is more severe than reporting late to work.

(b) Duration of the problem: Analyse if there have been any past violations and the

period over which it is happening. First-time violations are dealt with in a different

manner compared to violations which have been repeated for the third time.

(c) Frequency of the problem: Examine if the current problem is a part of a pattern

of disciplinary infractions. Continual violations require more severe punishments.

(d) Extenuating circumstances: Examine if there are any external factors which

are leading to the indiscipline. Reporting late to work due to the illness of a family

member has to be dealt with more leniently than reporting late to work because

of oversleeping.

(e) Degree of familiarisation: Find if the employee causing the problem has been

familiarised with the rules and procedures of the organisation. Consider if the

violator knows the organisational standards of acceptable behaviour.

Organisations that have formalised written disciplinary rules are more justified in

enforcing discipline than organisations that only have informal and unwritten

rules.

(f) History of the organisation’s disciplining practices: Find how similar

misconducts have been dealt with in the past. Find out if the organisation has

consistent disciplining practices. Impartial treatment of violations requires certain

benchmarks.

(g) Management backing: Ensure that the higher authorities back the disciplinary

process. Disciplinary actions are not effective if they are over-ridden by the upper

levels of the management.

Q4. What do you mean by Human Resource Information System (HRIS)?

Describe the various modules of HRIS. Discuss some of the HRIS software.

Ans. Human Resource Information Systems (HRIS) is a software application that

caters to the human resource information needs of an organisation like monitoring

employee attendance, payroll and benefits administration, career development,

employee information, performance management, and training. HRIS is a collection of

components which work together to gather, process and store information that the HR

department can use to make decisions, to coordinate and to plan its activities. HRIS

facilitates easy access and management of employee-related information.

Modules Of HRIS

Payroll: This module of HRIS keeps track of the pay grades and positions of the

employees. Pay raise details are also recorded. This module gathers information on

employee time and attendance. It calculates the deductions and taxes and generates

pay slips and tax reports. Cheques get automatically deposited in the employee bank

accounts. Inputs for this module are obtained from HR and time-keeping modules. This

module integrates with the current financial systems of the organisation.

Benefits administration: This module tracks and administers employee benefit

programmes. The benefit programmes include insurance, reimbursements, profit

sharing and pension programmes.

HR management: This module covers many HR aspects, ranging from employee

recruitment to retirement. It records employee details like addresses, training

programmes undergone, skills, position and so on. The functions addressed by this

module are recruitment, placement, evaluation and career development of the

employees. Job sites on the Internet are increasingly being used for recruitment. This

module tracks job applications. Interviews and selection details are also maintained.

Training: This module administers and tracks employee training and development

programmes. Records of employee education, qualification, and skills are maintained. It

also outlines the training courses and training materials (CDs, books, web-based

learning programmes, etc), which help employees develop their skills. Courses can be

planned and scheduled using the data stored. Managers can approve training and

budgets.

Performance appraisal: This module evaluates the job performance of employees in

terms of quality, time and cost. This helps in analysis of employee strengths and

weaknesses and suitability for promotions. It gives feedback to employees on

performances and identifies employee training needs. It also documents criteria which

can be used for organisational rewards.

EXAMPLES

Sage Abra HRIS: It has modules for benefits enrollment, benefits messenger,

recruitment, employee self-service, payroll, HR features and training features. It

simplifies routine employee management tasks, ensures compliance with government

regulations, keeps track of employee attendance, makes recruitment more effective,

automates employee training and updates employees on benefit programmes.

Oracle HRMS: This has different modules for HR, payroll, training administration and

time management. Oracle HRMS supports application processing, employee profiling,

career development, and management of compensation and benefit plans.

SAP HR: This has modules for personnel administration, recruitment, training, time

management, payroll, compensation management, budget management, travel

management and personnel development.

Q5. As an HR of a Company, you are asked to focus on the causes of

Grievance and the Grievance handling procedure. What according to you are the

reasons of Grievance? Explain the pre-requisites you will consider while

addressing Grievance handling procedure?.

Ans.

Causes of employee grievances.

Economic: Issues related to wages like wage calculation, overtime, and bonus.

Employees often feel that they earn less than what they deserve.

Working environment: Issues related to the employee’s work environment like poor

working conditions, defective equipment and machinery, tools, materials.

Supervision: Issues like behaviour of the boss towards the employee, perceived ideas

of partiality, discrimination, preferential treatment, prejudice. Work group: Issues with

co-workers like stressed peer relations or inaptness with peers.

Work organisation: Issues related to the organisation like rigid and unfair rules and

lack of recognition.

Essential Pre-requisites of Grievance Redressal Procedure

Conformity with statutory provisions: Due thought must be given to the laws of the

land while formulating the grievance handling procedure.

Clarity: Every aspect of the grievance handling procedure has to be clear and

definite. All employees have to know whom to approach first when they have a

grievance, whether the grievance is to be written or oral, and the maximum time in

which the redressal is guaranteed. The redressing spokesperson also has to know the

limits within which the employee can take the required action.

Simplicity: The grievance handling procedure has to be simple and short. If the

procedure is complex it may discourage employees and they may fail to make use of it

in a proper manner.

Promptness: The grievance of the employee has to be quickly handled and essential

action must be taken at once. This is good for both the employee and the management

because if action is delayed or deferred, it may affect the confidence of other employees

as well.

Training: The manager and the union representatives need appropriate training in all

matters of grievance handling so that no complications arise during the grievance

handling process.

Follow-up: The personnel department needs to keep track of the efficiency and the

performance of the grievance handling process and make necessary changes to

improve it with time.

Q6. Write a brief note on the following:

(a) Trait theory

(b) ERG theory

Ans. Trait theory The Trait Theory: This theory uses traits (characteristics) to

distinguish between leaders and non-leaders. The traits associated with leadership The

traits that indicate strong leadership are as follows:

Intelligence: This refers to the mental ability of a person and is only a moderate

predictor of leadership. The Intelligence Quotient (IQ) of a person can be used as a

qualifier for high management jobs, but once the high position is attained, an effective

leader also displays good levels of Emotional Intelligence (EI). EI helps a leader to

empathise with the emotions of others. Many people feel that Carly Fiorina, the ousted

leader of Hewlett-Packard, had a high IQ, but a low empathy for the people around her

and ignored the human aspects of her decisions.

Extraversion: Extraverts have higher social and interpersonal skills. They are more

energetic, assertive and self-confident. As extraverts are more dominant, they emerge

as natural leaders. For example, Steve Ballmer, the CEO of Microsoft, is an extraverted

leader.

Conscientiousness: Conscientious people are organised, dependable, systematic,

punctual and achievement oriented. They take initiative and are persistent in all they do.

Openness: People who are open to new ideas and try new things become effective

leaders.

Self-esteem: People with good self-esteem assess their worth and capabilities in a

more positive manner. Leaders with high self-esteem are more supportive to their

subordinates. People with higher self-esteem are more confident and have greater

charisma.

Integrity: Effective leaders display honesty and integrity. Such leaders are more

trustworthy.

ERG Theory.

To bring Maslow’s need hierarchy theory of motivation in synchronisation with empirical

research, Clayton Alderfer redefined it in his own terms. His theory is called the ERG

theory of motivation. He re-categorised Maslow’s hierarchy of needs into three simpler

and broader classes of needs:

Existence needs: These include need for basic material necessities. In short, it

includes an individual’s physiological and physical safety needs.

Relatedness needs: These include the aspirations individuals have for maintaining

significant interpersonal relationships (be it with family, peers or superiors), getting

public fame and recognition. Maslow’s social needs and external component of esteem

needs fall under this class of need.

Growth needs: These include need for self-development and personal growth and

advancement. Maslow’s self-actualisation needs and intrinsic component of esteem

needs fall under this category of need.