Employee Relations Management_completeMU0003

8/9/2019 Employee Relations Management_completeMU0003

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Spring 2010(Jan-June)

Master of Business Administration-MBA Semester 3

MU0003 Employee Relations Management - 2 Credits

(Book ID: B0775)

Assignment Set- 1 (30 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Elaborate on the framework of Employee Relations [10]

Answer:

The Framework of Employee Relations

Any organization, in order to attain its goals successfully, must always endeavour to develop and

maintain healthy employee relations. The framework for such relations must be based on the

following:

a) Integration:

The needs of individuals, groups and the organization must be seamlessly integrated. Such

cross-matching of interests will invariably result in a healthy organizational climate and

promote creativity and productivity. It is a management responsibility to initiate measures to

create an atmosphere of mutual trust and understanding so that the employees appreciate

both organizational and environmental constraints and support the company at all times.

b) Employee Participation:

Supportive climate and mutual trust and confidence can be created by involving workers and

their groups in the decision-making process. Management should be open to ideas and

accept or reject an idea or suggestion based on its merits and not on the source of the idea

or suggestion. The management must appreciate the problem of the employees and strive to

resolve these at the earliest. Communication channels must be kept open and the employee

must be given an opportunity to be heard. Such involvement not only improves the quality of

decisions but also leads to the satisfaction of ego needs of employees. They feel recognized

and their attitude is always positive. Joint management councils or committees consisting of

equal representative of workers and management may be constituted. Frank and fair

discussions/meetings help to secure and preserve unity among workers and managers.

Effective use of group dynamics is a must.


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c) Congenial Work Environment:

Management must create a work environment wherein workers can perform their jobs with a

sense of security and camaraderie. They must value the task they are performing.

Simultaneously, the management must ensure job security, a meaningful and challenging

job, scope for opportunity and advancement and satisfying interpersonal relationships for the

employees.

d) Communication:

Most of the employee relations problems arise due to lack of communication or inadequate

or a distorted communication. The desire to have knowledge about the current situation,

future prospects, company policies and contemplated changes is one of the basic needs of

an employee. Lack of communication leads to fear, misunderstanding and distrust.

Therefore, management should maintain open channels of communication, particularly

upward communication. Employee handbooks, grievance procedures, suggestion schemes,etc. enable management to understand the feelings, fears and aspirations of employees.

Informal communication or grapevine is generally used to supplement and support the formal

channels of communications. However, strict vigil on rumours must be kept with all efforts to

arrest them at the earliest.

e) Adaptive Leadership:

Leadership style must be determined by the situation and must be flexible. An effective

leader is one who fully understands his employees and adapts his approach to the

requirements of the situation. In order to develop healthy relations, managers should listen

carefully, talk less and give decision in the opportune time. Decision delayed is harmful to the

organization as it leads to mistrust. Managers must uphold the dignity of the individual

employees and must have a positive attitude. Orders must be clear and unambiguous.

f) Resolving Conflicts:

Continuous efforts must be made to reduce and minimize inter-personal and inter-group

conflicts. The genesis of the conflict must be identified and the solution must be such that it

satisfies the interest of both parties albeit not fully. Healthy employee relations can be

developed through an integrative and problem-solving approach in which both the parties

gain satisfaction of their needs in a co-operative manner and not at the expense of one

another. Such a situation requires impartial, continuous and positive communication with the

parties concerned.

g) Conditioning Behaviour:

Conditioning the behaviour of people is one of the effective ways of building healthy

employee relations at work. This involves the use of positive and negative reinforcements.

Rewards must be used to reinforce desirable behaviour while punishment must be used to


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discourage undesirable behaviour. The most important aspect being that the managers must

themselves have exemplary conduct.

h) Personnel Counseling:

An ideal manager must have big ears to listen to all the problems, a pair of big eyes to

observe things, a big head to analyze and arrive at an effective solution, a big tummy to keep

things confidential and a small mouth to speak less. Thus a manager must listen patiently and

help expeditiously resolve the problems faced by workers both inside and outside the

organization. Counseling reduces the build up of tension and improves their self-confidence.

The employee feels at home in the four walls of the factory or office.

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Q.2 Discuss any five important elements of good organizational culture. [10]

Answer:Essential Elements of a Good Organizational Culture

a) Vision, Mission and Values

The vision, mission and core values of the organization must not only be clearly written down,

displayed prominently but also be integrated as key statements of purpose and philosophy into

the recruitment and orientation programs, internal company communications, training and

development schemes, methods of appraisal, recognition and reward. It must be ensured that

each and every employee of the organization is aware of the vision, mission and values of the

organization and is able to relate to it from his own sphere of activities.

b) New Staff Recruitment

All new recruitments must be done keeping the organizations values and mission central.

Aspiring employees must be given adequate time to get to know these aspects before they come

and join as members of the team. All prospective employees must be screened with tools like

profiling available in the market today.

c) New Staff Orientation

The new employees joining the organization must be actively helped in settling down and given

confidence of a long and productive career. Studies show that employees who get thorough and

thoughtful orientations will stay longer and contribute more throughout their careers.

d) Training & Development Programs

Investing in training and staff development programs is good. But many companies engage a

wide assortment of trainers and programs, making little effort to ensure a smooth and beneficial

integration. It must be ensured that all the trainers, be it outside or in-house, are clearly aware of

the organizations vision, mission and values. They must be able to describe the issues and major

challenges facing their company today.


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e) Annual Appraisals

Annual appraisals must be a stamp of quality. If talent has to be retained, then the assessment

must be on the range, depth and volume of the employees ideas. If the organization encourages

open culture, the appraisals must also be on an open format. If, however, a cross-functional and

non-hierarchical communication is desired, a 360-degree appraisal process must be employed.

No amount of broadcasting company values will matter if people are measured by other

standards.

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Q.3 Mr.Kapoor is the CEO of Dream Dcor Furnitures Company. He has to diversify his business.

He wants to assess the leadership style of some of his senior managers.

Manager 1- (Has a high consideration for people and low for structure)

Manager 2 (Has a high consideration for people and also high for structure)

Manager 3 (Has a low consideration for people and high for structure)Manager 4 (Has a low consideration for people and low for structure)

Refer to the Grid approach and help Mr Kapoor to clearly understand the leadership styles for all

the managers. Which style is best, according to you? Explain. [10]

Answer:

Grid Approach of Leadership (Blake Mouton)

The grid approach to leadership has been developed by R.R. Blake and J.S. Mouton. It was

primarily developed for assessing the personality of a leader in terms of his concern for task and

concern for people, and later, attempting behavioural modification in him through Managerial Grid

training program. Since each axis of the grid has 9 steps, a leaders performance can be plotted

anywhere on 81 small boxes of grid by obtaining his score with the help of a questionnaire.

However, for the purposes of studying the styles of leadership the grid can be divided into five

main areas. These are shown in Figure Below:


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Figure: Grid Approach of Leadership

i) Location 9, 1 Style (Task)

This style represents the task or mission oriented leader. He cares little about the feelings of his

group members. He believes in close supervision and proves impatient about the slackness,

delay or failure on the part of group members. This type of behaviour of leader is suited for

handling certain types of emergency conditions.

ii) Location 9, 9 Style (Team)

This type of leader tries to integrate both mission accomplishment and welfare of men. He helps

the development of those members of his group who are committed to the achievement of

organizational goals. Such members, with their stake in the organizations purpose, co-operate

with each other and work in an interdependent manner. They trust and respect each other and

that helps them in creating a congenial work environment. This makes the task of the leader easy.

He works with conviction that people support what they help to create.

iii) Location 1, 9 Style (Country Club)


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The leader belonging to this quadrant of the grid is also called the club manager. The welfare of

people is his sole aim. He is likely to fail in achieving organizations time bound objectives. Since

his heart is full of compassion and he cannot see people suffering. He lives with the idea that a

happy team produces the best results.

iv) Location 1, 1 Style (Impoverished)

This is the non-involved type of leader. He neither causes any event nor directs any event taking

place on its own. He considers that mission accomplishment and welfare of people are conflicting

goals. The best results are achieved if the procedures established in the past are allowed to

continue. An organization headed by such a leader can consider itself lucky if it could just

maintain the standards of efficiency achieved under an earlier dynamic leader.

v) 5, 5 Style (Middle Road)

This is the leader who follows middle-of-the-road policy. He thinks that by being firm but fair he

can achieve the best results. He is a compromiser. He strives to achieve results without unduly

upsetting the people. Such a leader is best suited to play the role of a conciliator in the labormanagement conflicts.

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Master of Business Administration-MBA Semester 3

MU0003 Employee Relations Management - 2 Credits

(Book ID: B0775)

Assignment Set- 2 (30 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Explain the disciplinary procedure in detail. [10]

Answer:

Disciplinary Procedure

The disciplinary procedure involves the following steps:

a) Preliminary Investigation: First of all, a preliminary inquiry should be held to find out whether

a prime facie case of misconduct exists.

b) Issue of a charge-sheet: Once the prima facie case of misconduct is established, charge

sheet is issued to the employee. Charge sheet is merely a notice of the charge and provides the

employee an opportunity to explain his conduct. Therefore, charge sheet is generally known as a

show cause notice.

In the charge sheet, each charge should be clearly specified. There should be a separate charge

for each allegation and charge should not relate to any matter which has already been decided

upon. The charges so framed should be communicated to the individual along with the statement

of allegations on which the charges are based.

c) Suspension Pending Enquiry: Depending on the gravity of charges, an employee may be

suspended along with serving him the charge sheet. The various circumstances which may

warrant suspension of an individual are:

i) When disciplinary proceeding is pending or contemplated.

ii) When engaged in the activities prejudicial to the interest or security of the state.

iii) Where a case in respect of any criminal offence is under investigation, inquiry or trial.

iv) Where continuance in office will prejudice investigation/ inquiry/trial.

v) When the presence of the employee in office is likely to affect discipline.

vi) When his continuous presence in office is against the wider public interest.

vii) Where a prima face case has been established as a result of criminal or departmental

proceedings leading to the conviction, revival, dismissal, etc.

viii) In case of the following acts of misconduct:


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Moral Turpitude

Corruption, embezzlement

Serious negligence in duty resulting in loss

Desertion of duty

Refusal or failure to carry out written orders

According to the Industrial Employment (Standing Orders) Act, 1946, the suspended worker is to

be paid subsistence allowance equal to one-half of his wages for the first ninety days of

suspension and three-fourths of the wages for the remaining period of suspensions, if the delay in

the completion of disciplinary proceedings is not due to the workers own conduct.

a) Notice of Enquiry: In case the worker admits the charge, in his reply to the charge

sheet, without any qualification, the employer can go ahead in awarding punishment

without further inquiry. But if the worker does not admit the charge and the charge merits

major penalty, the employer must hold an enquiry to investigate into the charges. Proper

and sufficient advance notice should be given to the employee indicating the date, time and

venue of the enquiry so that the worker may prepare his case.

b) Conduct of Enquiry: The enquiry should be conducted by an impartial and responsible

officer. He should proceed in a proper manner and examine witnesses. Fair opportunity

should be given to the worker to cross-examine the management witnesses.

c) Recording the Findings: On the conclusion of the enquiry, the enquiry officer must

record his findings and the reasons thereof. As far as possible, he should refrain from

recommending punishment and leave it to the decision of the appropriate authority.

d) Awarding Punishment: The management should decide the punishment purely on the

basis of findings of the enquiry, past record of the worker and gravity of the misconduct.

e) Communicating Punishment: The punishment awarded to the worker should be

communicated to him in written and the earliest available opportunity. The letter of communication

should contain reference

to the charge sheet, the enquiry and the findings. The date from which the punishment is to be

effective should also be mentioned.

Q.2 Discuss the process of collective bargaining, along with the illustration for bargaining process.

[10]

Answer:


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a) Problem Identification

This involves identifying and analyzing the problem to understand its gravity and applicability.

Since collective bargaining is not the forum for solving individual problems, such an analysisis essential. It also influences selection of representatives, their size, period of negotiations

and period of agreement that is reached ultimately. As such, it is important for both the

parties to be clear about the problem before entering into the negotiations.

b) Data Collection

Both labour and management initially spend considerable time collecting relevant data

relating to grievances, disciplinary actions, transfers and promotions, lay-offs, overtime,

former agreements covering wages, benefits, working conditions (internal sources) and

current economic forecasts, cost of living trends, wage rates in a region across various

occupations, competitive terms offered by rivals in the field, etc.c) Selection of Negotiators

The success of collective bargaining depends on the skills and knowledge of the negotiators.

Considerable time should, therefore, be devoted to the selection of negotiators with requisite

qualifications. Effective negotiators should have a working knowledge of trade unions

principles, operations, economics, psychology, and labour laws. They should be good judges

of human nature and be able to get along with people easily. They must know when to listen,

when to speak, when to stand their ground, when to concede, when to horse-trade, and when

to make counter proposals. Timing is important. Effective speaking and debating skills are

essential.

d) Climate of Negotiations

Both parties must decide an appropriate time and set a proper climate for initial negotiations.

At this stage, the parties must determine the tone of the negotiations i.e. hostile or of mutual

trust.

e) Bargaining Strategy and Tactics


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The strategy is the plan and the policies that will be pursued at the bargaining table. Tactics

are the specific action plans taken in the bargaining sessions. The following aspects should

be covered:

(i) Likely union proposals and management responses to them.

(ii) A listing of management demands, limits of concessions and anticipated union

responses.

(iii) Development of a database to support proposals advanced by management and to

counteract union demands.

(iv) A contingency operating plan if things do not move on track.

Generally, each side tries to find how far the other side is willing to go in terms of

concessions, and the minimum levels each is willing to accept. Parties should avoid taking a

rigid and inflexible stand initially. Each party should be willing to concede up to a certain

extent depending on ones own compulsions and pressures, with a view to win over the other

party. This is popularly known as bargaining zone which is the area bounded by the limitswithin which the union and employees are willing to concede. If neither party is willing to

concede a little bit, negotiations reach a deadlock or impasse. Impasse is a collective

bargaining situation when the parties are not able to overcome their differences, usually

because one party is demanding more than the other will offer. One way to avoid impasse is

postponement of difficult issues to a later stage and take up easier ones first with a view to

have a smoother passage initially. Another way to avoid breakdowns is for each side to be

prepared to offer propositions and to accept alternative solutions to some of the more

controversial issues.

f) Formalizing the Agreement

When a solution comes through a formal document must be prepared expressing everything

in a simple, clear and concise form. After this, both parties must sign the agreement and

abide by its terms and conditions during the entire term of the contract.

g) Enforcing the Agreement

Collective bargaining does not come to an end with the signing of the agreement. For the

agreement to be meaningful and effective, both parties must adhere to the conditions agreed

upon and implement every thing scrupulously.

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Q.3 TechPro is a company dealing with the manufacturing of UPS. It has more than 25

employees. The company was established 4 years ago. The company owner wants to keep in

place all the legal implications. Will the organization be covered in the Factories Act? What all

provisions need to be taken care of to abide by the regulations? [10]


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Answer:

Important Statutory Provisions in the Factories Act, 1948

1. Cleanliness

(a) Every factory shall be kept clean and free from effluvia arising from any drain, privy or other

nuisance.

(b) Accumulation of dirt and refuse shall be removed daily by some effective method,

(c) The floor of every work room shall be cleaned at least once in every week by washing, using

disinfectant where necessary, or by some effective method,

(d) Where a floor is likely to become wet in course of any manufacturing process to such an

extent as is capable of being drained, effective means of drainage shall be provided,

(e) Walls, partitions, ceilings, doors, windows. etc. shall be painted, varnished, white colour

washed in the prescribed manner.

2. Disposal of Wastes and Effluents

a) Effective arrangements shall be made in every factory for the treatment of wastes and

effluents due to manufacturing process carried on therein, so as to render them innocuous and for

their disposal.

3. Ventilation and Temperature

(a) Effective and suitable provision shall be made in every factory for securing and maintaining in

every workroom the circulation of fresh air and such a temperature as will secure to workers

therein reasonable conditions of comfort and prevent injury to health,

(b) The walls and roofs shall not be exceeded but kept as low as practicable,

(c) The process which produces high temperatures shall be separated from the workroom by

insulating the hot parts or by other effective means.

4. Dust and Fumes

(a) Where dust or fumes or impurity of such a nature as is likely to be injurious or offensive to

the workers is given off as a result of the manufacturing process being carried on in a factory,

effective measures shall be taken in the factory for prevention of inhalation or accumulation of

dust and fumes in workrooms. If for such a purpose any exhaust appliance is necessary it shall

be applied as near as possible to the point of origin of the dust, fumes or other impurity and such

point shall be enclosed so far as possible,

(b) A stationary internal combustion engine shall not be operated unless the exhaust is

conducted into the open air. Other internal combustion engines shall not be operated in any room

unless effective measures have been taken to prevent accumulation of fumes there from which

are injurious.


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5. Artificial Humidification

In any factory in which the humidity of the air is artificially increased, the water used for the

purpose shall be taken from a public supply or other source of drinking water or shall be

effectively purified before it is so used.

6. Over-crowding

There shall be in every work-room of a factory at least 9.9 cubic metres (for the factories existing

before this Act) and 14.2 cubic metres for factories built after this Act) and 14.2 cubic metres (for

factories built after this Act) of space for every worker. In calculating such space, no account shall

be taken of any space which is more than 4.2 metres above the level of the rooms floor.

7. Lighting

a) In every part of the factory where workers are working or

passing there shall be provided and maintained sufficient and suitable lighting, natural or artificial

or both,

b) All glazed windows and sky lights used for lighting shall be kept clean and free from

obstruction,

c) Effective provision shall be made to prevent glaze and the formation of shadows.

8. Drinking Water

(a) In every factory, effective arrangements shall be made to provide and maintain at suitablepoints conveniently situated for all workers employed therein a sufficient supply of wholesome

drinking water,

(b) All such points shall be legibly marked drinking water in a language understood by a

majority of the workers employed in the factory. No such points shall be situated within six metres

of any washing place, urinal, latrine, spittoon, open drain carrying effluent or any other sources of

contamination unless a shorter distance is approved in writing by the Chief Inspector,

(c) In every factory wherein more than 250 workers are ordinarily employed, provision shall be

made for cooling drinking water during hot weather by effective means and for distribution thereof.

9. Latrines and Urinals

(a) In every factory:

(i) Sufficient latrine and urinal accommodation of prescribed types shall be provided

conveniently situated and accessible to workers at the time while they are at the factory;

(ii) Separate enclosed accommodation shall be provided for male and female workers;


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(iii) Such accommodation shall be adequately lighted and ventilated and no latrine or urinal shall

unless specially exempted in writing by the Chief Inspector, communicate with any work-room

except through an intervening open space or ventilated passage;

(iv) All such accommodations shall be maintained in a clean and sanitary condition at all times;

(v) Sweepers shall be employed whose primary duty would be to keep clean latrines, urinals and

washing places.

(b) In every factory wherein more than two hundred and fifty workers are ordinarily employed:

(i) All latrine and urinal accommodation shall be of prescribed sanitary types;

(ii) The floors and internal walks, up to a height of 90 centimeters, of the latrines and urinals and

the sanitary block shall be laid in glazed tiles or otherwise finished to provide a smooth polished

impervious surface;

(iii) The floors, portions of the walls or blocks so laid or finished and the sanitary pans of latrines

and urinals shall be thoroughly washed and cleaned at least once in every seven days with

suitable detergents or disinfectants or with both.

10. Spittoons

(a) In every factory, there shall be provided a sufficient number spittoons at convenient places

and they shall be maintained in a clean and hygienic condition.

(b )No person shall spit within the premises of a factory except in the spittoons provided for the

purpose. A notice containing the provision of spittoons in the factory and the penalty for spitting

any where except in the spittoons shall be prominently displayed at suitable places in the

premises.

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Employee Relations Management_completeMU0003

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