HRM

49
HUMAN RESOURCE MANAGEMENT Meaning: - Resource means an asset or wealth which can be utilised as and when required. Every organisation consists of 5 m’s. They are man, money, machine, material and market. Out of these five “m” s men is one of the crucial elements for the organisation. These men can be considered as human resource for the organisation. Human Resources are the wealth of a country to whom it can rely upon at any time. With the growth and development of science and technology, with the introduction of liberalisation and globalisation in India Human Resource are considered to be an important aspect for the Organisation as well as for the country. Industrial Revolution has brought a sea change in the industrial climate of the country. More and more industries were set up and industrial production increases in due course of time. It is only possible with the skill, knowledge, attitude , abilitycompetence, efficiency, creativity of human beings . So Human Resource management not only for the growth and development of the organisation but for the entire nation. Hence human resource is considered as an asset for the organisation and for the country. DEFINITION: - Human Resource management is the planning, organising, directing, controlling, and separation of Human Resource to the end that individual, organisation and social objectives can be accomplished. By FLIPPO. FEATURES/CHARACTERISTICS 1. It is the activityof planning, Organising, Directing and controlling of Human Resources. 2. It is conceded with procurement, Development, compensation and separation of Human Resource. 3. Meant for individual and organisational objective.

description

hrm

Transcript of HRM

Page 1: HRM

HUMAN RESOURCE MANAGEMENT

Meaning: - Resource means an asset or wealth which can be utilised as and when required. Every organisation consists of 5 m’s. They are man, money, machine, material and market. Out of these five “m” s men is one of the crucial elements for the organisation. These men can be considered as human resource for the organisation. Human Resources are the wealth of a country to whom it can rely upon at any time. With the growth and development of science and technology, with the introduction of liberalisation and globalisation in India Human Resource are considered to be an important aspect for the Organisation as well as for the country.

Industrial Revolution has brought a sea change in the industrial climate of the country. More and more industries were set up and industrial production increases in due course of time. It is only possible with the skill, knowledge, attitude , abilitycompetence, efficiency, creativity of human beings . So Human Resource management not only for the growth and development of the organisation but for the entire nation. Hence human resource is considered as an asset for the organisation and for the country.

DEFINITION: - Human Resource management is the planning, organising, directing, controlling, and separation of Human Resource to the end that individual, organisation and social objectives can be accomplished. By FLIPPO.

FEATURES/CHARACTERISTICS

1. It is the activityof planning, Organising, Directing and controlling of Human Resources.2. It is conceded with procurement, Development, compensation and separation of Human Resource.3. Meant for individual and organisational objective.4. Social objectives can be accomplished.

0BJECTIVES—The primary objective of HRM is ensure the right people for right job so that the objectives of the organisation can be effectively achieved. Accordingly the objectives of HRM have been classified into following categories:

PERSONAL ORGANISATIONAL SOCIAL1. Training Development 1. HR Planning 1. Legal compliance 2. Placement 2. Selection 2. Benefits3. Compensation 3. Inter personal Relation 3. Union management relation 4. Performance Appraisal 4. Assessment 5. Follow-up-action

Page 2: HRM

SCOPE OF HRM

1. Human Resource Planning.

2. Job Analysis

3. Acquisition of HR.

4. Training &Development.

5. Performance Evaluation and Review.

6. Compensation and other benefits.

7. Safety and Health provisions.

8. Organisation Development.

Page 3: HRM

FUNCTIONS OF HRM

A. MANAGERIAL FUNCTIONS B. OPERATIONAL FUNCTIONS

A. MANAGERIAL FUNCTIONS

1 .PLANNING:-

Determination of long term short term objectives Preparation of action plan Formulation of policy &procedures

2. ORGANISING:-

Identification of activities. Grouping of activities. Assignment of authority &responsibility. D) Establish relationship.

3 .DIRECTING:-

Communication. Motivation. Involvement.

4. CONTROLLING:-

Measurement of performance. Find out deviation. Take corrective action.

B. OPERATIONAL FUNCTION

A) PROCUREMENT 1) Job analysis, 2) HRP, 3) Selection, 4) placement, 5) promotion, 6) Transfer,

7) Punishment.

B) DEVELOPMENT

Page 4: HRM

1) Training, 2) Performance Appraisal, 3) Carrer plan.

C) COMPENSATION 1) Job Evaluation, 2) wage & salary administration, 3) Bonus and incentives.

D) INTEGRATION 1) Motivation, 2) Grievance redress, 3) Collective Bargaining, 4) Conflict management, 5) Discipline.

E) MAINTERANCE

1) Health, 2) Socialseafty, 3) Welfare schemes, 4) Personnel Records, 5) Personnel Research

QUALITIES OF HR MANAGER

________________________Quality______________________

Personal Professional

Personal qualities are those qualities which help the HR manager to understand human behaviour some personal qualities must be there which can help the HR manager to fulfil the desire and aspiration of the employees as well as the employer.

A) INTELLIGENCE : - Mental ability to deal the people. A HR manager should be an intelligence person while communicating with other inside and outside of the organisation.

B) EDUCATIONAL: - Refers to learning and teaching skill. A HR manager should have the quality of learning as well as teaching in the organisation .Its should learn form the employees skill desire , development and teach the employees about the organisational growth , need and expectation of the employer from the employee .

C) DISCRIMINATING: - A HR manager should have the qualities of discrimination. Its can well distinguish between good and bad, right and wrong, just and unjust, merit and de merit.

D) EXECUTING : - HR manager should have the quality of exerting the decision of the management. its have to streamline all the HR related work with in the organisation with utmost sincerity accuracy and objectivity. its should have the quality of co-ordination, control and guidance which leads to standard of performance.

Page 5: HRM

Professional qualities are more important and necessary for a successfulHR manager. This quality refers to those which are required by the organisation. A HR manager should be more professional in character .some of the professional qualities are:-

A) ABILITY TO LISTEN : - This quality helps the HR manager to be appreciated by other employees. A HR manager should listen patience to the grievances of other employees before arriving a concession.

B) HUMAN PSYCHLOGY : - HR manager should well-versed with human psychology. he should understand other mentality, ability and integrity.

C) TECHNICAL &MANAGERIAL : - A HR manager should be technically soured person and a person and a professional manager. He should have the capacity to manage technically and efficiently with in limitation.

D) SOCIAL JUSTICE: - A HR manager showed act with degree of common séance he should have interest tuckered people in order to prefect social justice. he should be well versed in law and judicious in decision making process.

The qualities and skill of a HR manager differ from organisation toorganisation. The qualities remain differ from time to time depending on the requirements of the organisation. But in general it should be take into grant that the qualities of a HR manager must be different from the qualities of other managers like marketing, production, sag stem and finance manager.

DUTIES AND RESPONSSIBILITIES OF HR MAMAGER

All the operational functions of HRM system can be regarded as the duties and responsibilities for total implementation of HR system and performance of each employee in each level. Of the duties and responsibilities are as follows.

A) JOB ANAIYSIS : - This duty includes determines the nature of job and type of job in each department in order to achieve the objective.

B) RECRUITMENT: - Find out suitable employees for the organisation so that there will be no overstaff or under-staff problem. The number of employees should be appropriate so that the day to day work of the organisation will not hamper.

C) PLACEMENT: - Right person should be in right job witch leads to job specialisation. only qualified, experienced and expert employees can found place in the organisation.

D) TRAINING AND DEVELOPMENT : - After placement training is necessary to each and every employee. Training is required to make an employee perfect. A perfect employee can develop the organisation.

E) PERFORMANCE APPRAISAL : - Evaluation of the employee during a particular time period. The process of performance appraisal enables the HR manager to distinguish between good employee and bad employee.

Page 6: HRM

F) COMPENSATION : - The salary and other financial benefits applicable to the major duty and responsibility of HR manager.

G) PROMOTION: - This is the responsibility of HR manager in the organisation. This process ensures that the most efficient employees. Will be promoted. Then process will assign more authority and responsibility to the employee.

H) TRANSFER: - Deployment of workers inside the organisation and outside of the organisation .Transfer is made for effective control of the organisation and it is a duty of the HR manager.

I) DEMOTION: - This is one form of punishment for in efficient employee. The HR manager will demote to those employee who are proved to be in-efficient in performance appraisal process.

J) GRIEVANCE REDRESSAL : - This is one of the important duty of a HR manager. It is his responsibility to see and act favourably for the employee grievance. He should consider different grievances of different employee and take a judicious action.

K) CONFLICT MANAGEMENT : - Conflict management is an important duty and responsibility of a HR manager .The misunderstanding in work place leads a situation of conflict among the workers. The reasons of conflict and their solution is one of the primary duty of HR manager.

L) EMPLOYEE DISCIPLINE : - Maintenance of discipline inside the organisation is one of the primary duty of HR manager. It is his responsibility to award reward and punishment for discipline and indiscipline workers of the organisation.

The duty and responsibilities of a HR manager differ from organisation to organisation. According to the need of the organisation these duties and responsibilities changes from time to time.

HUMAN RESOURCE PLANNIG

MEANING- It is a process by which an organisation determines how it should acquire its desired manpower to achieve the organisation goal. It helps an organisation have the right number and kind of people at the right place and right times to successfully achieve its overall objectives.

DEFINITION- HRP is a process of determining and assuming that the organisation will have an adequate number of qualified persons available at proper times, performing jobs which meet the needs of enterprise and provide satisfaction for the individuals involved.

OBJECTIVES:-

1. To Recruit and retain required quality and quality of Human Resources.2. To meet the needs of expansion and diversification of the organisation.3. To adjust the impart of technological change and need of Human Resources.4. To enhance the skill, ability, knowledge and standards of the existing employee.5. To adjust the surplus and shortage of employee and take corrective measures.6. To maintain favourable industrial Relate.

Page 7: HRM

7. To maintain a balance between demand and supply of Human Resources at appropriate period.

8. To reduce the labour turnover cost.9. To make best use of Human Resources.10. To ensure effective control over HR.

NEED AND IMPORTANCE OF HRP

1. To meet the shortage of experienced and skilled employee of the organisation.2. It works as a cost saving device.3. Provides man power without interruption ,( situations like retire, death ,

retrenchment )4. Change in technology like production, marketing, privatisation globalisation etc.5. To deploy and Re-deploy the existing works.6. To protect the employment policy of the govt. (For reservation of SC & ST child

labour etc)7. To provide suitable working condition as a demand of workers union.8. Provides swot analysis of the workers.9. Face the other competitors in the market.10. Helps for growth and development of the organisation.

HRP PROCESS:-Acquisition and utilisation of human resources is an important decision of a manager. The process of human resources planning helps in this regard and makes the task of amanager easy.The process of HRP involves the following steps they are :-

1. Analysis of organisational plans & objectives org plan means functional plan like different branches, sections, and sub sections. I .e production. Finance, marketing, administrationetcetc. objective refers to long term and short term objective.

2 .Analysis of HRP Objective:- Emphasis to future requirement. Specify the policy for HR selection. Abolish routine or old job by replacing meaning full work to meet changing

environment. Maximise return on investment on HP.

3. Forecast Human Resource Requirement:- Expansion of the enterprise. Merger or acquisition. Retirement, death, resignation & retrenchment. Improvement in productivity. CAD- Computer aided design, CAM- Com aided manufacture.

Page 8: HRM

4 .Assessment of supply of HR: - 1) Human Resource Audit, 2) Complete information about quality and quality,3) Dept requirementof manpower,4) provision to deploy existing manpower for extra-work & overtime .

5. Matching the demand and supply of HR. This step involves. 1) Demand for and supply of HR .2) Find out the shortage & Excess of HR. 3) In case of shortage it can recruit, promote etc .4) In case of excess vrs, Re-deployment, etc.

6 .Follow – up – action: - This step involves:- Review and monitor against the standard. Corrective measures for deficiency. Implementation of plan in right direction. Corrective actions need to be modified in the changed environment

If all these steps carried out properly the HRP will be effective and proves to be productive for the organisation .other wise the HRP will be counter productive for the organisations.

FACTORS OF HRP

A) Internal factors : - 1) Company policy, 2) HR strategy, 3) Job analysis, 4) quality of information system, 5) marketing policy, 6) Trade unions. CSAQMT

B) EXTERNAL FACTIRS 1) Government policy, 2) Level of Economic Development, 3) Business environment, 4) Level of technology, 5) International sours, 6) Outsourcing. EGBTSO

BARRIERS OF HRP

1) Perceptions of top management: - It has been perceived by the top management that people are available plentily in this labour surplus country. so time and money should not spent for HRP.

2) Problem of demand and supply of HR: - It has been experienced that accuracy of Resources which is a barrier for HRP.

3) Fluctuation in technology:-Technology changes rapidly. Accordingly labour turnover, market fluctuations, and employment opportunity change rapidly, These uncertainty cause a major problem for HRP as it seems to be for from the reality.

4) Conflict of quantity and quality: - The HRP process suffers due to a conflict in between the quality of manpower and the quantity of manpower. Quantity inHRP means flow of employees in side the organisation and quality refers to only few employee backed by experience, skill, knowledge and morale.

5) Absence of reliable Data: - The entire HRP process dependent on an accurate and reliable data maintained by the organisation forHuman Resources. In case of a defective data and unreliable information it is not possible to carryoutthe HRP in the Organisation.

RECRUITMENT

Page 9: HRM

Meaning: - After determination of human resources requirement for the enterprise the process of recruitment is the first step in the process of filling a vacancy. It is that process which enables the management of the enterprise to select and employ required employees for varied types of job.

DEFINTION:-:- 1) Requirementis the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation. By E.B.FLIPPO2) Requirement is a positive process of searching potential employees for the organisation and it continues till the suitable employee is selected and ends with the placement.

SOURCES OF RECRUITMENT

Sources

Internal Sources External SourcesA. Present employees A. Employment ExchangeB. Employee Referrals B. AdvertisementsC. Former Employee C. Employment AgencyD. Previous Applicants D. Professional Association

E. Campus RecruitmentF. Deputation G. Word-of-mouthH. Raiding

1. Interned sources mean recruitment process with and promotions In the enterprise. It can be in the form of Transfer and promotions.

A) Transfer : - Refers to shifting an employee from one job to another job without any change in position post, status and responsibilities, The need for transfer is felt to provide employees a broader base which is considered for promotions.

B) Promotion : - promotion implies shifting of an employee form his present job to the higher position having higher status, pay and responsibilities.

C) Employee Referral : - This is one of the internal source where the employees referred their own family and friend members as the potential employee of the organisation .This is beneficial for the organisation as the potential employee is known to the existing employees.

D) Former Employee : - The vacancies can be filled with the former employee. Some employees who has been retired and left the organisation may be interested to serve again The advantage of this source is the performance of the employee has already been evaluated.

Page 10: HRM

E) Previous Applicants :-This is a type of internal source of recruitment. some of the applications of the potential candidates lying in the organisation .This type of recruitment is applicable for un skilled and semi-skilled employees.

2)External Source:- If the requirement is not fulfilled from the internal source the organisation has to depend on some external source .These sources are outside agencies who provide applicants for the requirement of the enterprise .

A) Employment Exchange: - It maintain a record of job aspirants. whenever the employers inform about the vacancies to the employment exchange, they provide the names considering the suitability.

B) Advertisement:-This is considered as a powerful tool for recruitment. Newspaper, periodicals, magazines an there electronics medias like TV internet where details regarding the job an potentialities are informed.

C) Employment Agency: - Besides goat employment exchange some private agencies provide information’s about the potential candidates to the enterprise as an when required .They charge a nominal fees for the some and serve as a recruitment source

D) Professional Associations: - This is a source which is particularly useful for professionals and technicians .Institute of Engineers, management. Associations of India. Indian medical Associations provide useful information’s to the organisations as and when required by them.

E) Campus Recruitment: - This is a source of recruitment and common for all American organisations. Now it has been followed by almost all private and public limited companies, where they used to go different educational and training institutions for recruitment purposes.

F) Deputation: - This is a source of recruitment for govt and public sector organisations. It refers to sending an employee to another organisation for a short duration. It helps the organisation to get ready expertise and the organisation does not incur initial expenditure on training and development.

G) Word-of–Mouth: - To attract the employees of the rival organisation This is a source of recruitment in this source the employees are offered very handsome and attractive remuneration.

H) RAIDING: - This is a source of recruitment for qualified an experienced employees of competitors.

Page 11: HRM

RECRUITMENT PROCESS: - A good recruitment process comprises the following steps.

1) Recruitment Planning : - It is the 1st step in recruitment process. In this step a comprehensive draft has been prepared for job specifications .The draft contains A) Vacant position , B)Responsibility of the post , C) Qualification & Experience , D) Extra skill and ability , E) Nature of the post F) Seale of pay .

2) Strategy Development : - In this step a suitable strategy has been devised for recruitment .The following points to be considered for a suitable strategy. A) What should be the source, B) Recruitment method I eDirect indirect method, Third party method, C) What geographical area to be considered.

3) Searching : - After strategy development the next step is searching .This is a step which involves attracting job seekers to the organisation. The sources to attract the job seekers are A) Internal source B) External source refers to the source with in the organisation an external source is the source available outside of the org.

4) Screening :-This step begins with the completion of searching .Screening is the beginning of selection. All the applicants both shortlisted .By screening of the applicants it can be possible to distinguish between deserved &undeserved. The technique used for screening differs from organisation to organisation depending on its nature.

5) Evaluation and Control : - This is the last step in recruitment process .As recruitment involves some cost it is necessary to evaluate the process .The evaluation and control can be effective when the following answers will be positive in character. 1) Weather the recruitment method is appropriate?2) Weather the recruitment will be effective for organisation? If the answers will be negative than corrective action should be taken so that it will be positive.

PDSSCFACTORS OF RECRUITMENT

The following factors affect the recruitment process. They are:-

1) INTERNAL FACTOR A) Company’s pay package.B) Quality of work life.C) Organisational culture.D) Carer planning.E) Growth rate of the company.F) Role of trade unions.G) Goodwill of the company.H) Cost of Recruitment.

Page 12: HRM

2) EXTERNAL FACTOR A) Socio-economic condition.B) Demandand supply condition.C) Employment condition.D) Labour Market condition.E) Govt policy- Reservation rule – SC/ST/OBC.

EFFECTIVE RECRUITMENT: - As there is no such formula the following so for a suitable recruitment process the following points should be taken in to consideration to have an effective recruitment.

1) well defined recruitment policy.2) A good organisation structure.3) Well defined procedure for locating potential job seekers.4) A suitable method of evolution.5) Timely modification of the process according to the requirement.

TRAINING

After selection of new employees in the organisation, the departmental supervisors try to learn and show the way to the new employee how to perform his allotted work most effectively needs a well planned training programme .Training is necessary for improving the quality of work as well as familiarize the workers with day to day changing work environment. Training makes perfect to the employee who have been selected newly for the organisation.

DEFINITION:-1) Training is the organise procedure by which people acquire knowledge and skill for a definite purpose.2) Training is the process of increasing the knowledge and skills to Performa particular job.

CHARACTERISTICS: - By analysing the above two definitions we get the following characteristics:-

A) ORGANISED PROCEDURE : - Training is an organised procedure .Training is a set of rules and regulations and every Training procedure is carried out with some stipulated and well defined procedure .All the trainees in the Training process are governed by an uniform procedure.

B) FOR THE PEOPLE :-Training is meant for the people of the organisation. New employees need Training in order to accommodate them in the organisations and the old employee need Training in order to adjust them in the changing situations of the organisation.

Page 13: HRM

C) ACQUIRE KNOWLEDGE AND SKILL : - Training is meant to get more knowledge and to develop the skill in the workplace .A worker can able to develop the skill and knowledge about his work by getting training. The training process can facilitate the work and the worker become a perfect worker by getting training.

D) DEFINITE PURPOSE: - Every training programme is meant to fulfil a particular purpose. The worker gets benefit out of training and through training it can able to achieve desired goal.Every organisation wants to achieve the aims oftheorganisation through its employee and the training system enables an employee to become perfect which leads to attainment of objectives.

OBJECTIVES OF TRAINING: - Training helps both the organisationas well as the employee of the organisation. The main objectives of training are:-

1) PREPARE EMPLOYEES FOR THE JOB : - Training enables the employees to perform their work in the organisation. So the primary objective of the training, workers can be prepared to perform their duties and responsibilities. without training a worker cannot do his work in the organisation and if perform in a defective way.

2) EMPLOYEES BECOME MORE PRODUCTIVE : - Training makes perfect employees. An employee can become more productive and able to perform the work in an efficient manner. All organisation wants to have productive employee in order to fulfil the organisational objectives.

3) TO CREATE 2 ND LINE MANAGERS : - Training makes man perfect. Through Training the workers can become more competent and efficient. By virtue of their competency in work the gap of managers can be fulfilled. In this way the organisational can be able to fulfil the 2nd line managers for the organisation. The absence or vacuum of managers can not be felt.

4) MANAGERS BECOME MORE FLEXIBLE: -Training makes the senior managers more flexible .The 2nd line managers became more competent and truanted persons for the organisation by imparting training. Hence the senior managers adopt a flexible approach towards the juniors.

AREAS OF TRAINING: - Training is an important programme organisation. Training can be provided in the following areas of the organisation.

1) POLICY AND PROCEDURE : - The rules and regulation of the organisation is an important area where training is necessary. The rules and regulation should be followed by each and every employee. In this context the policy, objectives and procedures should be imparted as a training aspect in the regulation.

2) SPECIFIC SKILL : - Training is necessary in some particular skill. There are some workers who need a specific skill in order to perform the duties and responsibilities .proper. Some technical skill is necessary to run and handle up to date sophisticated machines .misuse and mishandle will lead to damage and less to the organisation.

3) HUMAN RELATION :- Inter personal relation is one of the important area where training is one of the important area where training is necessary .Human relation training leads to build team work in the organisation for better co- operation and understanding in work place this area needs training .

Page 14: HRM

4) MANAGERIAL TRAINING : - Training is necessary in managerial areas. Different managerial functions can be carried out with planning, organisation, Directing and controlling. Hence training is necessary in these areas to make managerial work smooth and easy.

5) PROBLEM SOLVING : - Each and every organisation face some or other problems tow to solve different problems and the techniques of problem solving can be provided to the managers through training. The process of training to different problem solving areas can enable the organisation to achieve the goal.

METHODS OF TRAINING

Different training methods are followed by different organisation for their new employee. some of the important and common methods of training are as follows.

A. ON THE JOB TRAINING B. OFF THE JOB TRAINING1. Rotation 1. Vestibule2. Coaching 2. Role3. Job Instruction 3. Lecturer4. Committee 4. Conference

ON THE JOB TRAINING: - In this method the trainee is placed on a regular job and taught the necessary skills how to perform it efficiently. This training is based on the principle of learning by doing .In this method the trainee loams under the guidance and supervision of an instructor or a supervisor who is experienced and competent in that line . on the job training can be:-

A) JOB ROTATION : - In this type of training an employee have to rotate his job form one post to other and during that duration lerns how to perform the duty. In each job he learns how to be perfect and efficient in performing the work. So along with his day to day work he takes training in workplace.

B) COACHING :-In this method the training is given to an employee by a supervisor. Under one supervisor all the employees takes training how to perform the work with more efficient. A coach should be person who has considerable knowledge and expert in that line.

C) JOB INSTRUCTION : - This is another method of training imparted to the employees in the work place. The workers are instructed to go step by step in each work so that work can be perfect and complete in time. This type of training enables the workers to become perfect workers.

D) COMMITTEE :-This is a training method where the work has been assigned to a committee consisting of a group of workers. All the workers are allowed to perform the work jointly .After completion of the work it has been evocated and all the workers shore the joint responsibility for the success and failure of the work. This type of training helps the worker to learn how to work jointly in the organisation and keep co- operation with all the workers.

OFF THE JOB TRAINING: - This is a training method where the worker have to take training only outside the work place. The worker will not perform his day to day work in the organisation only take training in different places. Off the job training consists the following methods:

Page 15: HRM

A) VESTIBULE TRAINING : This is know as classroom training or centre training. In this method training is imparted with the help of equipments, machines, different training centres are opened .This method of training is only confined with the theatrical concept of work and the practice knowledge imparted in production centres and labs.

B) ROLE PLAYING : Under this method the worker is supposed to play different type of roles for the org .Different roles like manager marketing, marketing officer, marketing supervisor, marketing agent and sales man etc. In each role he wants to convince the organisation that at any workplace the worker can be best suitable one.

C) LECTURE : This is a common method of training. This type of training is suitable for complex jobs .This type oftraining is imparted by a lecture who is expert in that line of work and have the ability to train a large number of employees.

D) CONFERENCE : - In this method a conference is organised where the participants take active part and put forth their experiences .As a result the problem in work place can be so ned easily. The members of the conference so he many problems and share the experience of other member.

TRAINING PROCESS

In order to have a good training programme all the training procedures should be carried out systematically .Training process refers to the steps followed in the training system .The following are the steps of training :-

1) PREPARING THE INSTRUCTOR :- This is the primary step in training .In this step the instructor who happens to the trainer should prepare himself for the training work .Preparation of an instructor depends on the following points :- A) Knowledge about job . B) Aptitude and ability to teach. C) Knowledge of teaching methods and principles. D) Capacity to lead the team of trainees.

2) PREPARING THE TRAINEE : - After the preparation of the trainee the next step is the preparation of the trine. In this step the trainer should know the trainer well .The mental condition; the environment in which the trainee wants to take training should be favourable so that the trainer as well as the trainee will be in a right direction.

3) READY TO TEACH : - After the trainee and trainer both ready to impart training, the next step is to teach the trainees as per the procedure. In this step the trainees as well as the trainer should abide the following points.

A) Planning the training programme.B) Prepare instructor outline.C) Discuss each item in depth.D) Evaluate periodical progress.

4) PRESENTING THE OPERATION : - This is the fourth step in training process. In this step the trainer plays an important role and find out the ways and means how to present the entire training process. In this step the trainer have to look after the following points very carefully in order to make training programme successful.

A) Explain the sequence of the entire job.

Page 16: HRM

B) Do the job step by step.C) Explain each job with each step.D) Let the trainee explain the entire job.

5) FOLLOW – UP –ACTION : - This is the last step in the training procedure. In this step the instructor have to provide feedback on the training effectiveness. This is being the last step considers as one of the important step of training. The trainer takes corrective action whenever any discrepancy arises with the training programme and training imported.

IMPORTANCE OF TRAINING:-Training is an important tool in the hands of the management to make organisation more effective. Training has the following importance

A) INCREASED PRODUCTIVITY : - Training makes worker more competent and efficient. An efficient worker can perform his duties and responsibilities in a productive way which leads and to increase the productivity of the organisation. It helps to achieve the target of the organisations.

B) HIGH EMPLOYEE MORALE : - The employee morale can be better if training procedure applicable to each and every employee. Because all the employee can be efficient and productive employee. In that case the productivity can increase. Hence the employee will proud for their organisation and increase confidence in them.

C) REDUCED SUPERVISION : - As all the workers become competent and perfect due to training then less chance of supervision is need for them. Because all the workersare efficient due to training and they can perform their duties and responsibilities perfectly .No necessity of guidance and supervision for their allotted work.

D) SELF DEVELOPMENT : - An employee can develop in his work place by training. training enables an employee to become perfect and efficient .An efficient employee can have confidence with him in the organisation.

E) ORGANISATION STABILITY : - The organisation can be a stable organisation through training .Because all the workers are competent and productive enable to achieve the organisational objectives.

PERFORMANCE APPRAISAL

MEANING: - After the training process completes the next work with the management is appraise the performance of the employee performance appraisal is the step where the management findsout how effective it has been at hiring and placing employees .If any problem arises and identified, steps can be taken to communicate with the employee .performance appraisal enable the management to evaluate the efficiency and competency of a worker for witch he she has been placed. It is done periodically in the organisation and communicate to the employee concerned if necessary.

Page 17: HRM

DEFINITION: -

1) It is the process of evaluating the performance and qualifications of the employee in terms of the requirements of the job for which he is employee. By heels.

2) Performance Appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job – By flipped.

CHARACTERISTICS: - The following are the characteristics of performance appraisal.A) IT IS A SYSTEMATIC PROCESS : - performance appraisal is a well defined process and

systematically carried out in the organisation to rate the employee and to find out the difference in them.

B) IT IS A CONTINOUS PROCESS : - Performance appraisal carried out in the organisations continuously .It may be in one month, there month, six month or every year .It is a periodic evolution process where the employee’s performance is evaluated.

C) IT PROVIDES INFORMATION : - Performance appraisal provides information to the management regarding the ability of the employee for which he is being selected and placed .on the basis of that information management ranks the position of that employee in the organisation.

D) TAKES CORRECTIVE ACTION : - On the basis of the performance appraisal the management tries to take corrective action against the employees. The employees can be promoted and demoted on the performance appraisal report and worked out in the enterprise.

E) ACHIEVEMENT OF OBJECTIVE : - Both long term and short term objectives of the organisation required to arrived at. For that purpose performance appraisal should be carried out so that it can facilitate the enterprise to achieve the objectives.

FUNCTIONS OF PERFORMANCE APPRAISAL:-The main functions of appraisal system are as follows:-

1) PROVIDES FEEDBACK: - Appraisal system provide a database of each and every individual employee for his or her performance. This feedback helps the performance evaluation of the employee .The employee can able to know where he is and what to do in the future ,Systematic and periodic feedback helps the employees where he is where they stand and how to improve the job performance .

2) CHANGES BEHAVIOUR : - Appraisal changes the behaviour of the employees. Performance appraisal can distinguish between the strength and the weakness and at the some time identifies the future course of action. An employee can develop effective working habits by performance appraisal.

3) HELPS THE MANAGERS : - Feedback in performance appraisal helps the managers to take consecutive and positive decision for the employee .The decisions like pay, promotion, transfer, demotion and punishment on the basis of appraisal report helps a manager in the organisation for betterment.

4) DEVELOP SUPERIOR SUBORDINATE RELATION :- Periodic and continuous appraisal report helps both the boss and the assistant to develop a good relation between themselves .The work culture in the organisation can not be affected by the appraisal report as the deserved employees will only get the benefit .

Page 18: HRM

PERFORMANCE APPRAISAL PROCESS

Appraisal of employee is not an easy task. It requires a number of steps in order to make it more appropriate and accurate. The steps are:-

1) ESTABLISHMENT OF STANDARD : - This is the primary step in performance appraisal. The content and nature of the job should be prepared .Before evaluation the criteria of the job should be fixed. The criteria must be clear and objective .The standards of performance should be quality of work , honesty,Team work, sense of responsibility, initiative etc.

2) COMMUNICATING STANDARDS : - After specification of standards they are communicated to the employee so that they come to know what is expected form them. After communicated the standards to the employee’s feedback to these standards is obtained if required standards can be modified in the light of feedback obtained from the employees. If there is no reaction than it should be taken into granted that the employee.

3) MEASURE ACTUAL PERFORMANCE : - The next step in performance appraisal is to measure the actual performance with the standards fixed .Actual performance can be made when we acquire information about the performance .work performance can be measured through personal observation, statistical reports, and oral report and written reports.

4) COMPARE THE ACTUALS WITH THE STANDARDS: - After measurement of performance the next step is its comparison with the actual .In this step the actual performance is compared with the predetermined standard, with reveals the deviations, when the actual performance is more than predetermined it is positive and if the actual performance is less than predetermined it is negative. compression of standards enables to determine the growth and advancement of the employee in the organisation.

5) DISCUSSING THE APPRAISAL : - The results of the measurement should be communicated to the employee so that be can be able to know the strength and weakness of his work. If necessary the worker can be motivated for organisation and tried to improve himself.

6) FOLLOW – UP – ACTION : - This is the last step in performance appraisal .In this step corrective action can be initiated .This follow – up- action can be made with mutual discussion with the employees in order to improve performance. The corrective action may be training, couching, counselling and orientation that help an employee to improve performance.

METHODS OF PERFORMANCE APPRAISAL:-

1 .TRADITIONAL METHOD 2 .MODERN METHOD

A. Straight ranking method A. Assessment centresB. Man-to-man comparison B. Human Asset A/C method

C. Grading method C. Management by objectiveD. Check list method E. Group Appraisal

Page 19: HRM

TRADITIONAL METHOD:A) STRAIGHT RANKING METHOD : - It is one of the simple and object method of

performance appraisal .In this method the work of an employee is compared with the work of another employee and accordingly different ranks are allotted. This method helps to distinguish between the most efficient form the last efficient.

B) MAN TO MAN COMPERISION METHOD : - This is one of the oldest method of appraisal utilised in usa Army during 1st world war. In this method some factors are considered like leadership honesty, initiative and responsibility of an employee .Each factor is rated in a scale with the performance of other man. Higher is the scale high is the performance and low is the scale low is the performance.

C) GRADING METHOD : - Under this method the appraiser considers certain features and marks them accordingly to a scale .Certain categories of worth are first established and carefully defined. The selected features may be cooperativeness, job knowledge, judgement, organising ability etc. Different grades are allotted to each selected feature like A for co-operation, B for leadership, C for judgement like accordingly performance is measured with the employees.

D) CHECK LIST METHOD : - Under this method the working performance of a worker can be measured with a list of reports. The list has been prepared by the ratter about the behaviour of the employee .The ratter than checks to indicate if the answer to a question about an employee is positive or negative. The check list may be :-A) Is the employee really interested in this job?B) Is regular in this job yes/No.C) Does he follows instructions properly Yes/No.D) Does he make mistake ever Yes/No .E) Does he is willing to cooperate Yes/No .

E)GROUP APPRALSAL METHOD :- Under this method the performance of a worker is measured by agroup .The group consists of two supervisors and two senior and experienced workers of that group .The senior staff will describe the performance of the group to the supervisor who can rate the performance of the employee .

MODERN METHODS:A) ASSESSMENT CENTRES:- This is one of the modern methods of performance

Appraisal. Under this method the employees performance is carried out in a separate place know as assessment centres . In these centres the workers are grouped and the supervisor who is in charge rating the employees feel that all the workers are not equally competent . Accordingly the ratter fixes some standards like acceptable , more acceptable , less acceptable and un acceptable . with the standards the ratter will evaluate the employees of that group in a assessment centre .The ratter or the supervisor is an experienced person who has the authority

Page 20: HRM

and capacity to evaluate an employee .Generally this method is appropriate to help the workers for the purpose of promotion .

B) HUMAN ACCOUNT ASSET METHOD :-It is another method of performance appraisal .In this method the workers are treated as the resources of an organisation .The valuation of asset of that organisation .In this method it has been taken to granted that human employees are equal to assets of the organisation . In such a way all the productive workers should feel safe in the organisation .So they should not leave the organisation at any cost . There must be co-operation , team spirit and good understanding among the workers . Conflict and distrust will lead to devaluation of human resources .So this type of appraisal method is applicable and prevail in developed country organisation .Because in these organisations all the employees are motivated and productive employees .

C) MANAGEMENT BY OBJECTIVE (MBO) :----- This method of performance appraisal was introduced by peter trucker . It is one of the powerful method of managing the working ability of employees .This method minimises the internal control and establishes joint responsibilities between the managers and subordinates . it is a process where by the superior and subordinate managers of an organisation jointly identify its common goals ,define each individuals major areas of responsibility in terns of results expected of him and use these measures as guides for operating the unit and assessing the contributions of each of its members .It is result oriented , it is performance that counts , It is a management system and philosophy that stress goals rather than method .

INDUSTRIAL RELATION

Meaning:- Relation in general term means good understanding in normal life with each other .In the some way good understanding between the employee and employer in industrial organisationcalled as( Industrial Relations) or Employer- Employee relation .

The concept of IR has begun in India during struggle for Independence .The just and textile workers took the support of the leaders of Independence movement led by mahatma Gandhi .They protested against the oppressive practice of the British people since then scenario of IR changed a lot in India .

Now it has been felt by all most all the Industries that a better IR that resulted in high productivity for the organisation and better wages for the workers .On the other hand a strained relation between the employer-employee will lead to strike ,lock-out, fire fighting etc .Séance IR is considered to be an important concept in HRM .

DEFINITION :- Armstrong has defined IR is concerned with the systems and procedures used by the unions and management to determine the reward for effort an other conditions of

Page 21: HRM

employment to protect the interest of the employed and their employers and to regulate the ways in which the employers treat their employers .

OBJECTIVES OF IR :- IR of a country is in fawned a lot with political government .As govtchanges from time to time the objective of IR also changes . Broadly the objectives of IR is two categories .

1) Primary objective 2) Secondary / Auxiliary objective .Primary objectives of IR has laid down in Industrial policy Resolution .These objectives are:-A) Improve the economic condition of the workers .B) State control over Industrial undertakings .C) Socialisation and Rationalisation of Industries .D) Create a proprietary interest among the workers.

Secondary objectives of IR are as follows .

A) Establish good relationship between employee and employer .B) Avoid industrial conflict .C) Enhance the economic for workers .D) Provide an opportunity for workers to participate in the management .E) Increase productivity in the organisation .F) Avoid unwarranted interference of the govt.G) Establish Industrial Democracy on the basis of worker partnership .H) Socialise the Industrial activity in the state .

IMPORTANCE OF IR:- In order to maintain a good and positive relations between the employee and employers . IR plays a dominant role in the organisations . Its importance are as follows:-

1) Keep Industrial place :- IR foster Industrial peace .under IR mechanism both the employees and employers consult each other regarding any doubt and then initiate action so that unilateral actions that confuse and create misunderstanding can be removed and peace prevails which leads to prosperity .

2) Promote Industrial Democracy :- IR provides participative formula in the Industrial .The workers can take active participation in the decision process so that relations between the management and the workers can be good . Hence democracy prevails in the enterprise .

3) Reward for workers :- IR provide benefit to the workers with the IR mechanism it protects its management to implement the unethical practices in order to exploit the workers IR induces the management to provide good and favourable working condition to the workers .workers grievance if any can be solved properly which benefit the workers .

Page 22: HRM

4) Benefit to management :- with the introduction of IR it provides a mechanism to handle the indiscipline workers in the organisation .Any problem in work place can be consulted and mutually acceptable formula has been evolved by the managers to restore peace in the organisation .

5) Improves productivity :- IR considers to be the key factor in the industries to increase production productivity rises with a friendly relation with the workers as a single day has not wasted due to strike , lockout , absenteeism, dropout industries .

REASONS OF POOR IR:-There are different reasons for poor industrial relations in the industries . The causes of poor IR due to economical, political personnel , legal considerations . some reasons.

A) Nature of Work :- It is the work gives birth to good IR .Because job satisfaction for the worker induces to remain absorb in work . Job dissatisfaction leads to frustration which cause evil effects . Hence job design and job assignment among the employees should be proper .

B) Dissatisfactory Compensation :- Workers work in the industry for compensation .If salary and wage will not be a satisfactory reason for the employees they will not work proper due to poor IR .some times the workers demand more and equitable wages compering to other organisations . If not fulfilled the relation with the management will be bad and the result with be poor IR.

C) Inactive Trade Union :-In an industry Trade unions protect the interest of its workers but due to inter-union rivalry, politicisation the trade union remains disfunctionary. Hence it loses the trust and faith of the workers which leads to poor IR with management .

D) Un-Conducive Organisation Climate :-Organisational climate refers to a set of characteristics that describe the Organisation. It is basically the working environment provided in the industry to its works . A good and supportive work culture and condition induces a worker to maintain good relation and adverse to it have poor IR in the Organisation .

HOW TO MAKE SOUND IR:- Sound IR is a necessity for the growth and development of the Organisation .Bat a sound IR does not automatically . Developing and maintaining a good IR requires constant and deliberate effort towards this direction .The following points should be looked into for maintaining a sound IR .

1) MUTUAL TRUST :- It has been felt that trust between labourand management is the foundation of developing sound IR in the Organisation . The management must have faith to his labourers and the labourers must have to consider the management as reliable .This mutual trust will be the yard stick for a sound IR system .

Page 23: HRM

2) DEMOCRATIC TRADE UNION :- Existence of a democratic trade union in an organisation can build a sound IR. Trade unions can bargain before the management regarding the interest of the workers .Employees interest can be in terms of salary , wages working condition job security and other benefits form time to time .A sound and democratic trade union can able to do that which in turn can create sound IR in the organisation .

3) INDUSTRIAL PEA CE :- It is said that peace brings prosperity and prosperity supports happiness . In an organisation peace is the primary requirement which can be established through different ways .Industrial peace can be through prevention and settlement of Industrial dispute , evolving good personnel policy, code of conduct code of discipline collective bargaining method participative management policy etc.

4) PROFESSIONAL APPROACH :- Now in all most all the organisations attach more importance towards solve the employee problems . The sound IR depends on the problems solving approach by the management .Persons having professional competence and approach should be in charge of development of IR among the workers at work place .

5) FEED BACK AND CONTROL :-Continuous feedback and effective control over the existing employees leads to sound IR .The control technique should be from the beginning, as some small problems may create havoc in the long run .some simple matter may be very complicated if not dealt properly in appropriate time continuous feedback and timely control can lead to sound IR in the organisation .

The above points should be taken into consideration while maintain a sound IR in the organisations. A sound IR will lead to prosperity and development in the organisation.

INDUSTRIAL DISPUT

Meaning :- Human Resources later . These Resources are governed by human mind .Human mind is a store house of good, bad and evil thoughts . Industry is a place where lost of human mind are working . They think in different ways .Any clash in interests leads to dispute .In common meaning dispute means difference or disagreement over some issues between the parties . If the disagreement in an industry it is termed as industrial dispute .It takes a second to begin and takes years to settle .Industrial growth . It is required through good relation between the employer and employees . But in practice the relation goes on souring which leads to industrial dispute .It can take any form like strikes , gears , lock-outs , demonstration and picketing which can be resolved amicably .

DEFINITION OF ID

Page 24: HRM

Industrial dispute act 1947 the term ID as any dispute or difference between employers and employers or between employers and workman or between workman and workman which is connected with the employment or non-employment or the terms of employment and condition of employment of any person .

NATURE OF ID:- The following are the nature of ID .

1) The dispute must affect the interest of a Large number of workman .2) The dispute must be taken by the Industry union.3) The grievance must turn an individual complaint to a general complaint .4) There must be some nexus between the union and the dispute.

FORMS OF ID:- ID can be in the following forms:-

1) Strike :- Non-acceptance of employees demand leads to stop the work means strike. The unions support it when all hopes of the workers are shattered out there is no way left out but the strike. Strike can be for a definite period or for an in-definite period. Strike can be:- A) Economic Strike :-This strike undertaken by the members of the union to fulfil the

financial benefits of the workers. Financial benefit may be rise in wages , bonus, health services, education services, living condition, working condition etc.

B) General Strike : - When all the employees irrespective of regions , unions and position are involved in strike is known as general strike .

C) Sympathetic Strike : - It is known as token strike .When the strike is undertaken by the members off one union and other union as a token of sympathy support that striking union.

D) Sit down strike :- It is known as pen down or tools down strike .In this type the workers stop their work but do not leave the place of work .

E) Slow- Strike :- Here the employees do not stop the work but do not work enthusiastically .It is an organised way of protest in order to go slow which resulted in less output .

2) GHERAO :- It is a common means of protest .It can be done at any time by any group when they are dissatisfied .The workers surround the head or executive with a human chain preferably in his office and do not allow him to leave the place sometimes gears tums to violent .

3) LOCK- OUT :- It is undertaken by the employers .In order to resume work on the terms and conditions of the employer ,By lock out the employer curb the militant activities of the union lockout considers to be the trial of strength between the employer and employees .

4) PICKETING :- When the employees draw the attention of common public regarding a dispute between the management it is known as picketing .In picketing the leaders of the employee group dissuading the employees to report to work .Picketing considers to be legal in character to protest for a demand .

Page 25: HRM

5) BOYCOTT :-When the workers disrupting the normal functioning of the organisation. The striking workers appeal to other workers for voluntary withdrawal of co- operation with the employer .Boycott adversely affect the company image.

REASONS OF INDUSTRIAL DISPUT

A) ECONOMIC REASONS B) NON-ECONOMIC REASONS1. Salary & wages 1. Non-recognition of unions2. Dismissal &Retrenchment 2. For leadership3. Bonus 3. Political interference4. DA 4. Nepotism5. Working condition6. Automation7. Other reasons like medical Educational Homing etc.

ECONOMIC REASONS:A) Salary and wages :- Rise in prices of essential commodities has brought down the

value of money. This has resulted in lower down the salary and wages of the employees which forces them to demand for higher salary &wages .

B) Dismissal and Retrenchment :- With the increase in unemployment situation if any employee will be dismissed or retrenched the workers union will take up the issue and demand for justice .As dismissal and retrenchment of an employee is a severe jot to the employees family .

C) BONUS :- It is payable to the workers out of profit .Non-payment of adequate bonus to the workers leads to industrial dispute .It has been made mandatory to all industrial units to pay a bonus amount of 8.33% under industrial dis put Act-1961 with the workers participation in managerial affairs they demand more share in enterprise profit .Non-acceptance of their demand leads to industrial dis put .

D) Dearness Allowance :- Increase in price level and scarcity of essential commodities leads to bring down the standard of living .To maintain the standard of living the workers demand more DA. Non-acceptance of the demand leads to industrial Dis put .

E) Working Condition :- It is desirable on the part of the industries to provide good and favourable working condition pure drinking water , lighting and air facilities, sufficient safety provision and normal and permissible working hour should be taken care by the management . Absence of these hygienic conditions leads to industrial dis.

F) Automation :- Adoption of new and update technology leads to modernisation and automation of the industrial .But this modernisation and automation adversely

Page 26: HRM

impact on the workers .Because this leads to less engagement of employees. Due to non- engagement and retrenchment leads to industrial Dis put .

G) Other Reasons :- Some other economic reasons like housing facility , Educational scope and medical facility , Transportation etc if not adequate and proper the employees will demand for the same .It leads to industrial Dis put .

NON-ECONOMIC REASONS:-A) Non-recognition of unions :-Failure to recognise the employee union and their

representative is one of reason of industrial Dis put. Some employers do not attach more importance to the existence of unions and their representative. This leads to resentment which cause industrial dis put in the organisation .

B) Leadership issue :- Poor leadership among the employer as well as employee leads to discontentment among the workers .They can demand for both managerial as well as employeeLeadership to be strong enough for redressed of theirgrievances which leads to industrial dis put .

C) Political Interference :- Some times political organisations do interfere in union affairs for their political gain .They have neither knowledge about the employee grievance nor they have any relation with the employer .In order to restrict the political interference the employees may raise dis put in the organisation.

D) Nepotism :- Some supervisors are not impartial while treating their sub-ordinates .They seek nepotism and treat partially to some employees .This undue favouritism and nepotism leads to discontentment resulted in industrial Dis put.

WORKERS PARTICIPATION IN MANAGEMENT

MEANING:- In general sense participation means the meaningful interaction of human being with people they are condemned. Participation enables one to perform better. Peoples participation in govt. means “democracy” Democracy in govt .means of the people by the people and for the people. Industrial democracy can be possible with the workers participation .It can be said that management of an industrial unit by the people and for the people It provides a sense of belongingness of a worker to the organisation and a sense of commitment to various decisions taken.

In twentieth century a drastic change has been witnessed in the field of industries . Now it has been considered that the workers are not factors of production but they are the asset and resources of the organisation .The failure and success of an industry depends on its worker participation in management means extension of democracy in the industry .

Five year plan draft document has observed that “for peaceful evolution of the economic system on a democratic basis it is essential that workers participation in management

Page 27: HRM

should be accepted as a fundamental principle and an urgent need” workers participation in management is a tool to Human Resource Development.

It is the concept which promote mutual trust and understanding between workers and management to establish industrial peace and achievement of organisational goal .In industrial dis puts Act 1947 there are provisions for workers participation in management .workersparticipation provides a scope for formal and in-formal communication which develop a good relationship between workers and management .

DEFINITION:- International Labour organisation has defined workers participation in management . “As association of workers and their representatives with the decision making process , ranging from exchange of information , consultation decision and negotiations to more institutionalised forms such as the presence of workers members on management or supervisory boards or even management by workers themselves”.

OBJECITVES OF WPM:- The following are some of the objectives of workers participation in management .The estimate objective of wpm is to achieve organisational effectiveness and provide satisfaction to its employees . Accordingly thee objectives are categorised as primary and secondary .The primary objectives are as follows:--

OBJECTIVES

A. PRIMARY B. SECONDARY

1. Industrial Harmony 1. Economical2. Good Communication 2. Psychological3. Sense of Belongingness 3. Social4. Handle resistance to change5. Sense of commitment

PRIMARYA) Industrial Harmony :-WPM promote mutual understanding between management

and workers .The workers can get the scope ofunderstanding and the management will have the chance of understanding with the workers .with mutual understanding and co-operation the industrial peace can prevail which leads to achievement of objectives.

B) Good Communication :- Sharing of information’s between the employer and employee must be good in order to get financial benefit WPM enables both employee and employer to have good Communication.

C) Sense of Belongingness :- A worker can be an Asset for the organisation when he will belong to that organisation. Sense of belongingness can convert a human into

Page 28: HRM

resource for an organisation .This belongingness can be improved with WPM in the Industries .

D) Handle resistance to Change :- Trade unions are for the shake of employees.With their narrow political gains sometimes they protest to the change in policy , procedure and plans of the organisation .WPM helps the management to handle such resistances from employees side .

E) Sense of Commitment :- WPM increases the sense of commitment among the workers . The decisions made by the organisation are the consensus between the employer and employee. All the decisions arrived where the workers are a party to it .Hence it promote a commitment among the employees .

SECONDARYA) Economical :- WPM increases good relation among the worker and management.

Better relation leads to more productivity and output. In general the production can be increased to a maximum extent which helps to increase industrial productivity . Industrial productivity lead attain economic objective of the country .

B) Psychological :- WPM has a positive impact on the behaviour of the workers . It provide a sense of self-respect in the minds of the workers by which they feel dignified and behave in a responsible manner . Hence positive psychology convert them effectiveness in working which leads to increase industrial production.

C) Social: - WPM promotes social responsibility of the industries .It reduces industrial dis put and increases industrial peace and harmony .o improve

METHODS/SCHEME OF WPM

There are different organisations forms of wpm follow by different organisations . It depends on the level of participation by the workers .Some of the methods are as follows:-

1) Suggestion method :- Under this methods the suggestions from the workers are invited regarding the improvement of working condition how to improve cleanliness etc. The best suggestions which can be suitable to the management will be implemented and the conceded workers will be rewarded . This method increases the importance other workers in the organisation and encourage other workers in the organisation for more and more participation .

2) Co-Partnership :- This is a method where the workers participate in the decision making process .They are entitled toget the equity share of the enterprise .The profit of the organisation can be distributed to the workers in the form of share and being the share holder they can take part in the management .

3) Works Committee :- Industrial Dispute Act- 1947 has made mandatory to all the enterprise for establishment of works committee .The committee can be constituted with equal numbers of the committee should not exceed to Info numbers The purpose of the committee is create a cordial and harmonious relationship between the worker and the management .

Page 29: HRM

4) Board Representation :- Under this method two or three workers representative are vomited to the Board of Directors of the enterprise . The nominated workers enjoy the same privilege and authority in the Board .They can actively take decisions on policy matters and procedures of the enterprise along with the other members of the management .This method ensures an effective step in workers participation in management which promote the belongingness of the workers.

5) Joint Management Councils :- Industrial policy 1956 made it mandatory forIndustries to constitute joint management councils between management and workers to maintain Industrial peace .Jmc is an advisory committee which discuss the matters related to working condition safety measures training programmes rules and regulations etc. The recommendations are made to the management. Jmc are constituted with prior consultations with recognised trade unions of the Industries.

MERITS OF WPM:- In order to promote industrial peace and better Industrial relations WPM is a tool .It is considered to be an workers .The merits

1) Mutual Understanding :- The mentality of the employer and employee are different .WPM brings the both parties together . This enables both of them to understand their problems which minimises the conflict and promote industrial peace .

2) Increase employee efficiency :- WPM enables the worker to become a partner in various decision making process .What ever decisions are taken they are their own and it compels the workers to abide by them . The workers become enthusiastic and can devote maximum time in work by the way the workers become more efficientin their work .

3) Establish Industrial Peace :- WPM provides an opportunity how to be more responsible and understand each other by taking joint decision. This joint responsibility leads to understand each other better which reduce the dispute. This minimisation of conflict leads to establishment of industrial peace.

4) Promotion Of Industrial Democracy :- WPM helps in promoting industrial democracy .mutual cooperation and decision of both employer and employee leads to betterment of both the parties .It leads to promote Industrial democracy .

5) Welcomes Changes :- Any technological charge, managerial change , operational change can be either rejected or accepted with mutual consultation .If any change will bring more benefit and reduce the cost it will be welcomed and on the other if any change will be counter productive it will be rejected.

6) Personal Development :- The workers feel dignified by participating in decision making process .They can able to face any responsibility and challenge in the industry .Hence personal development for each worker can be possible by workers participation in management .

DE- MERITS

Page 30: HRM

1) Chance of Suspicion :- WPM crates a sense of suspicion in the minds of both employer and employee. The feeling of insecurity among the workers and feeling of incompetency among the management leads to suspicious in workplace .This will increase the sour relation between the employer and employee .

2) Weak Trade Union :- Most of the trade union are led by politicians .So the politicians are not in favour of sending qualified representatives to the management board .They always want to take advantage of the situation by WPM in the industrial . This will be a drawback

COLLECTIVE BARGAINING

MEANING:- A good number of employees are working in different organisations. The problems of the employees are not uniform in nature. Different employees have different problems in different organisation .The problems may be relating to salary , wages , bonus , medical facility , working environment , safety and health problems , education facility to their children etcetc .All these problems need to be solved with negotiation .

Trade union act as representatives of the workers to pat forth their grievances in front of the management .They increase the bargain power of the employees. The management on the other hand accepts those demands which can be mutually agreed upon so that it will solve the purpose of management .

Collective bargaining is a process of negotiating between management and the representative of workers for determining mutually agree terms and conditions of work which protect the interest of both workers and management .It is the group bargain against individual bargain. It can be said that collective bargaining is an agreement collectively arrived at by the representatives of the employees and the employers.

DEFINITION:-

1) Collective bargaining can be defined as a process of a situation in which the essential condition of employment can be determined by a bargaining process undertaken by representatives of a group of workers on one hand and one or more employers on the other. By-Dale

2) Collective bargaining refers to the negotiations administration and interpretation of a written agreement between the representatives of the employees and the employers of the management related to conditions of employment. By- Robbins.

IMPORTANCE OF COLLECTIVE BARGAINING:-

Page 31: HRM

1) PROMUTES INDUSTRIAL PEACE :-With the help of collective bargaining the management can able to get the co-operation of its employees. So all the problems can be sorted out with a minimum cost . A sense of understanding can be created in the minds of the employees to carry out their work. With this understanding and co-operation industrial peace can be arrived at .

2) EMPLOYEES CANNOT BE EXPLOITED :-Collective bargaining increases the bargain capacity of its workers .The interest of the workers can be safeguarded through collective bargaining . It is a tool in the hands of the workers to get their demands fulfilled in a peaceful manner without any conflict with the management. Hence the management cannot get the scope to exploit the workers in the Industry.

3) PROMOTE INDUSTRIAL JURISPRUDANCE :-Collective bargaining increases the self- respect of the workers. BY getting more benefits and implementing various welfare schemes through the bargain process the trade unions strengthens the workers unity . It provides a scope to boost trade union movement in industries . Hence industrial jurisprudence can be promoted in the industry .

4) INCREASE INDUSTRIAL PRODUCTION :- Collective bargaining increases industrial peace. most of the workers problem and their grievances are solved through negotiations . The workers become motivated workers and become productive worker for the industry. With the help of productive workers industry production can be increased in society .

5) MINIMISES ARBITRARY ACTION BY THE MANAGE MENT:-Collective bargain improves better employer and employee relation in the industry. All the employees become responsible and no unwanted activity can be created in the organisation .As a whole the employees become disciplined workers which force the management not to initiate anyarbitrary action against the employees.

6) DEVELOPS INTER-PERSONNEL RELATIONSHIP :- Collective bargaining IS a process where the representatives of trade union and the management representative sit together for mutual negotiation .This process provides a scope for better understanding between the authority and sub ordinate . Hence inter personnel relationship can be developed in the industrial

COLLECTIVE BARGAIN PROCESS:-

The bargaining continues through a process which consists certain stages . However the number of stages vary from organisation to organisation. The bargain process depends on the nature of parties involved in bargain process.Generally a bargain process consists the following steps .The steps are:-1) PRENEGOTIATION :- This is the primary stage of bargain process .It is the stage

for preparation of bargain . The negotiation process begins from this step .Both

Page 32: HRM

the parties for negotiation i.e the management an the union make preparation for bargaining . The management people will decide the strength and weakness of the union leaders and the impact of the bargain to the organisation in the future . The union leaders collect data from other industries and the leaders regarding the negotiations and the expectations of the employees in the organisation.

2) NEGOTIATORS :- In this step the person in charge of negotiation will be decided . It is one of the important step in bargain process . The negotiator considers to be an important person from both the parties .The management side negotiator may be the industrial relation officer , the personal manager the head of the particular department connected to the negotiation .The negotiation from the union side may be the secretary, vice-president or the president of the workers union. The negotiation should be a competent person who can put forth the sentiment of both the parties involved in bargaining process.

3) NEGOTIATION :- After completion of the 1st two steps , the third step is come to the negotiating table .Both the negotiators gather in a mutually convenient time and place to continue bargain process. Generally the union side put forth the demand of the employees and the management side took a note of the demand in the negotiation stage the union negotiator will try to accept the minimum demands. It is generally a give and take formula and the negotiation can be termed as fruitful when both the parties will fail if there will be no compromise between the negotiators and another date and time will be prepared for negotiation.

4) AGREEMENT :- In this stage a written contract between the two parties consisting of the terms and conditions of the agreement the date from which it comes into effect ,the duration for which it will remain in operation and the persons who will put their signature in the agreement . As per industrial dispute Act 1947, the contract shall be binding only on the parties of the agreement . The agreement can be declared as official document after ratification . Both the management and union leaders should sign the agreement.

5) IMPLEMENTATION: - This is the last step in collective bargaining process . After the agreement is approved it should be implemented in terms of its letter and spirit by both the parties . The date of its implementation should be as per the agreement . It is the responsibility of Human Resource Department to ensure the proper and full implementation of all provisions in the agreement . It should be considered that if any grievance in the agreement or in its implementation stage itshould be considered and taken into account while implementing the agreement .

CONDITIONS FOR EFEECTIVE COLLECTIVE BARGAIN

Page 33: HRM

Collective bargaining is one of the important tool to settle the industrial dis put . Effective collective bargaining depends on several conditions . If the conditions will be favourable than collective bargaining is effective .The following are some of the conditions.

A) TRADE UNION :- with the improvement of employees in different organisation trade unions play an important role to protect the interest of its employees .so a recognised strong trade union should be there for effective collective bargaining more the strong the trade union is more effective will be the collective bargaining and vice- versa.

B) ATTITUDE OF THE PARTIES :- The attitude of both the parties is an effective condition for collective bargain both the management and the worker should follow a problem solving attitude while negotiating .The parties should follow the principle of give and take approve. A compromise attitude of both the parties considers to a condition favourable for effective collective bargaining .

C) Availability of Data :- Information and data serve as a condition for effective collective bargaining . The relevant data should be supplied by the management and the workers have faith in those data’s .with out adequate and relevant data the collective bargaining cannot be effective one.

D) Continuous Dialogue :- collective bargaining can be effective when there is a continuous conversation between the management and workers . If there will be deadlock in dialogue between the parties than an agreement cannot be arrived for some controversial issues between the management and worker in order to narrow down the dis agreement there should be a continuous dialogue as a condition for effective collective bargaining .

E) Favourable political and social climate :- Industrial dis put can be settled through collective bargaining when there is a favourable political and social environment in the nation .when the industrial dis put will be supported by the government and favoured by the public the collective bargaining will beeffective many countries have different political parties and affiliated to different trade unions. The political parties does not consider the interest of the worker rather more interested in their political achievement .Hence collective bargaining process suffers a deadlock. So a favourable political and social climate will be an effective condition for effective collective bargaining.