HUMAN RESOURCE MANAGEMENT

Session details • Session 1 - Introduction to Human Resource

Management

• Session 2 - HR Planning, Recruitment, Selection, Placement and Induction

• Session 3 - Personnel Development Programme

• Session 4 - Job Compensation

• Session 5 - Promotions, Demotions, Transfers, Separation, Absenteeism and Turnover

• Session 6 - Quality of Work Life

• Session 7 - Counselling for Effective HR Development

• Session 8 - Human Relations

5 April 2012

Pranothi Nelson

Session 6

Quality of Work Life

Quality of Work Life

• Quality of Work

• Quality Circles

• Morale

• Job Satisfaction

• Social Security

• Health and Safety

• Labour Welfare

Introduction to Quality of Work Life

• Quality of Work Life was the term actually introduced in the late 1960’s.

• Initial focus was on the general well being and the health of the workers

• Today the focus is on financial and non financial incentives to promote retention and for the achievement of the organisation goals

Introduction to Quality of Work Life

• This approach motivates people by satisfying not only their economic needs but also their social and psychological ones.

• To satisfy the new generation workforce, organizations need to concentrate on job designs and organization of work.

• Further, today’s workforce is realizing the importance of relationships and is trying to strike a balance between career and personal lives.

Factors influencing Quality of Work life

1. Attitude

2. Environment

3. Opportunities

4. Nature of Job

5. People

6. Stress

7. Career Prospects

8. Challenges

9. Growth and Development

10. Risk Involved and Reward.

Definitions and approaches to Quality of Work Life

• Hackman and Oldham (1976) drew attention to what they described as psychological growth needs as relevant to the consideration of Quality of working life.

• Several such needs were identified

– Skill variety

– Task Identity

– Task significance

– Autonomy and

– Feedback.

• Skill variety

– Range of abilities needed to perform a specific job. Positions which require an individual to possess different skill sets in order to perform job duties are known to have a high skill variety.

– Greater skill variety has been found to be associated with greater perceived meaningfulness of work

– It would involve using different talents and skills in a job.

• Task Identity

– Extent to which a job involves doing a complete from beginning to end and identifiable piece of work with a visible outcome, as opposed to doing only a portion of the job.

• Task significance

– Extent to which an identifiable piece of work (job) affects, or is important to, others within or outside the organization.

• Autonomy

– A degree or level of freedom and discretion allowed to an employee over his or her job. As a general rule, jobs with high degree of autonomy engender a sense of responsibility and greater job satisfaction in the employee(s).

• Feedback is the information sent to an entity (individual or a group) about its prior behavior so that the entity may adjust its current and future behavior to achieve the desired result.

– Response to feedback is considered a feedback only if it brings about a change in the recipient's behavior.

Definitions and approaches to Quality of Work Life

• Mirvis and Lawler (1984) suggested that Quality of working life was associated with satisfaction with wages, hours and working conditions, describing the “basic elements of a good quality of work life” as

– safe work environment,

– equitable wages

– equal employment opportunities

– opportunities for advancement

“QWL” means different things to

different persons • to a clerk in dispatch

• To a mineworker

• Shop floor workers

• A probationary officer

• open communications

• equitable reward systems

• a concern for employee job security

• satisfying careers

• participation in decision making.

Practices to follow open communication

• Sharing of common values

• Inspire employees through innovation and inspiration

• Inform employees about strategic priorities; drive business results.

• Engage in business – listen, learn, be inclusive

• Educate and empower managers

• Excite employees about the brand initiatives; build momentum

Employee Communication

Communication is concerned with the exchange of information and ideas within an organization and involves managers actively seeking and then taking account of the views of employees before making a decision

The importance of employee communications

1. It is a vital part of any change management

2. commitment to the organization will be enhanced

3. generates trust

Communication methods

• Individual face-to-face communication

• Team briefing

• Consultative committees

• Notice boards

• Speak-up programmes

• Intranet

• Magazines

• Newsletters and bulletins

Communication methods

• Regular news letters – monthly, weekly, fortnightly

• Provide opportunities for leaders to communicate with employees

• E.g : Insync ( Mahindra and Mahindra)

• Air Time – Nike

Job Satisfaction

Job satisfaction

• The attitudes and feelings people have about their work.

• Morale is often defined as being equivalent to job satisfaction.

• Morale is defined as ‘the extent to which an individual’s needs are satisfied and the extent to which individual perceives that satisfaction as stemming from his total work situation’.

• Morale ‘is a feeling of being accepted by and belonging to a group of employees through adherence to common goals’.

Factors affecting job satisfaction

• Intrinsic and extrinsic motivating factors

• The quality of supervision

• Social relationships with the work group

• The degree to which individuals succeed or fail in their work.

Equitable reward Systems

• According to Donna Deeprose (1994), “For one thing, while the presence of money may not be a very good motivator, the absence of it is a strong demotivator.”

• Financial rewards

– salary increases

– profit sharing

– incentive travel

– paid time-off

Participation in Decision making

• Employee involvement practices – Quality Circle – Suggestion System – Employee Participation in Management – Empowerment – Survey Feedback – Autonomous Work Teams

What is a Quality Circle?

• Voluntary groups of employees who work on similar

tasks or share an area of responsibility

• They agree to meet on a regular basis to discuss &

solve problems related to work.

• They operate on the principle that employee

participation in decision-making and problem-solving

improves the quality of work

How Do Quality Circles Work?

• Characteristics

– Volunteers

– Set Rules and Priorities

– Decisions made by Consensus

– Use of organized approaches to Problem-Solving

How Do Quality Circles Work?

• All members of a Circle need to receive training

• Members need to be empowered

• Members need to have the support of Senior Management

How Can They be Used in an Organization?

• Increase Productivity

• Improve Quality

• Boost Employee Morale

Problems with Quality Circles

• Inadequate Training

• Unsure of Purpose

• Not truly Voluntary

• Lack of Management Interest

• Quality Circles are not really empowered to make decisions.

Summary of History and Practices

• Quality Circles were first seen in the United States in the 1950’s

• Circles were developed by Dr, Kaoru Ishikawa in Japan in the 1960’s

• Circles were re-exported to the US in the early 1970’s

Summary of History and Practices

• 1980’s brought Total Quality Management and a reduction in the use of Quality Circles

• Quality Circles can be a useful tool if used properly

QC in India

• The Ramchandrapuram unit of BHEL at Hyderabad is perhaps the first to have pioneered the quality circle movement in India.

• The company today has nearly 1700 quality circles involving about 17,000 workers who have tackled over 6000 problems

• Some others are J.K. Jute, Bharat Electronics & HMT

Suggestion System

Direct benefits of a suggestion scheme are the following:

• It can make work more easy

• It can make-work more safe

• It can remove mistakes

• It can improve quality

• It can increase efficiency

• It can decrease rejects

• It can reduce costs

• It can give more satisfaction to customers through better service

Suggestion System

Indirect benefits of a suggestion scheme are as

follows:

• It increases employees’ work morale

• It develops their capabilities

• It activates communication

• It improves human relations

• It identifies work-related problems

• It raises the level of group activities.

SS in India

• Hindustan Aircraft Ltd

• Hindustan Steel Ltd

• Hindustan Unilever

• Larsen and Toubro

• Maruti Udyog Ltd

SS in Maruti Udyog Ltd

Prize (Rs) Benefit to Company

10 0

25 <500

50 >or =500

100 >or =1000

200 >or =2000

300 >or =3000

500 >or =5000

1000 >or =10000

1500 >or =15000

2000 >or =20000

Employee Participation in

Management

• Subject matter of participation.

• Level of participation.

• Personal characteristics.

• Extent of participation.

Employee Participation in

Management • TISCO in India provides an example of the type of

partnership which needs to exist between management and workers’ union

in any organization.

• Here the Tata Workers’ Union is involved in almost every institutional matter and the union president is treated as part of the top level of the company.

Empowerment

Merits

• Speed in Decision Making

• Morale

• Compensation for limited career paths.

Demerits

• Greater potential for chaos

• Breakdown of hierarchical control

• Demoralization

Self-Directed Work Teams

What is a Self-Directed Team?

A group of associates with similar work related

activities, responsible for a “whole” work process

or segment that delivers a product or service to an

internal or external customer.

What is a Self-Directed Work Team?

A cohesive group of highly motivated

people committed to a common goal

who have the responsibility to

supervise and direct themselves.

What are benefits of Self-Directed Work Teams?

• Quality improves 45 to 70%

• Productivity increase 35 to 40% (2 to 3 years)

• Employee Commitment is Greater

What are benefits of Self-Directed Work Teams?

• Less absence, less turnover, less thief, less sabotage (with holding information)

• Self-Directed work teams reduce operating costs. (People get together in teams to reduce cost or steps.

Three major reasons for culture shift:

1. Global Competition

– Self-Directed Work Teams allows us to be more competitive.

– Self-Directed Work Teams allows for greater information to flow faster.

2. Span of control

3. People have changed.

What are their responsibilities?

• They are empowered to share various management and leadership functions.

• They plan, control, and improve their own work processes.

• They set their own goals and inspect their own work.

• They often create their own schedules and review their performance as a group.

• They may prepare their own budgets and coordinate their work with other departments

What is the role of the supervisor?

Act as mentors, obstacles removers, resource gathers, and target

adjusters.

How many in the Team?

Three to Twelve Associates

When and How often to they meet?

• at the beginning of shifts

• longer meeting (two to three hours) once or twice a month to discuss specific team issues surrounding communication discipline, equipment, and quality.

What is the process for starting a team?

• Department head selects the associates to be in the team.

• Department head would group the teams in the beginning.

• Trainers and Department head, meet with the team to explain what they are about.

What is the process for starting a team?

• Discuss different forms of group dynamics.

• Trainers meet with team to define its customers internal and external and create its vision and mission statement.

• Management Approves of Statements or sends back for revision.

• Trainers meet with team to develop its goals and objectives and values.

• Management Approves of Statement or sends back for revision.

• Teams meet and send suggestions to supervisor.

Five Main Obstacles to Teams

• Fear of Change

• Exchange of individual recognition for team recognition.

• Managers’ fear of loss of control

• Getting news where it needs to be’

• Teams straying off course

Five Roles in a Team Meeting

1. Facilitator - Neutral in discussion

2. Timekeeper - Functionally neutral

3. Recorder - Functionally neutral

4. Owner (s) - Not neutral

5. Resource people - Not neutral

Indian Examples of Employee Participation

• Volvo

– Teams are responsible for building entire cars and interacting with customers.

– Teams get feedback from customers on how the car performs

– Control membership, determine their own work pace

– Responsible for work performance and work procedures

• Brakes India Limited-Foundry Division

– Leadership and employee participation

– The top management led the TQM evolution in Brakes India

– The top management conducted periodic reviews to ensure that the vision cascaded down the line through long-term and medium-term objectives

• Total employee involvement was ensured through

– Quality circle

– Continuous improvement teams

– Suggestions

– Cross functional teams

– Special action groups

• The best suggestions and best continuous improvement teams were recognised and rewarded with special payments.

• A rolling trophy was instituted for the "Best Suggestion".

Mahindra and Mahindra

• Introduction of Continuous Improvement Teams (CIT) for workmen, Officers' Improvement Teams (OIT) and need-based Cross Functional Teams (CFTs) for officers ensured 100 per cent employee involvement over the last three years.

• The total 100 per cent employee involvement and improved labour-management relationship

Rane Breaks Limited

• Employee participation was elicited through Suggestion Schemes, Quality Control Circles (QCC) and Quality Improvement Team

• (QIT).

• Employee motivation was enhanced through appropriate reward and recognition schemes.

• Open communication was established with employees and their families.

TVS Sundaram

• CEO was fully involved in all the change management programmes since inception.

• All the employees were given training from time to time, in accordance with a training calendar and no section of the company was allowed to lag behind in acquiring knowledge to enhance

• All the employees participated fully in Kaizen implementation

• Improvements in manufacturing activities through suggestion schemes.

TVS Motor Company

• Employee participation and co-operation established the foundation for the success of TQM in TVS-M.

• In the policy management process, three breakthrough objectives of the company were achieved through taskforces, cross-functional

• teams and supervisory improvement teams.

• Additionally, quality control circles aligned with the departmental and sectional objectives and action plans.

• All employees in the company participated in continuous improvement

• the operating level employees participated in suggestion schemes and quality control circles, the supervisors and managers participated in Supervisory Improvement Taskforces and Cross Functional Taskforces.

• Themes for improvement were aligned to the annual policies of the company.

• The employee suggestion system enabled continuous

• improvement at the workplace.

• The individual workmen could make suggestions for workplace improvements. In the TEIAN system, those making suggestions took responsibility for implementation.

• The implemented suggestions were evaluated and awarded. Additionally, those making the best suggestions from each unit and department were rewarded by the President and Managing Director.

Results

• The company was able to secure 100 per cent employee participation in TQM.

• The employees had completed more than 1,468 projects through Quality Control Circles (QCC) in 2003-04.

• The average number of suggestions implemented per employee increased to 44 from 41.

BIRLA CELLULOSIC KHARACH

• Equipping teams

– Empowering people by giving the power to solve problems in their field of operation.

– Each and every employee was trained in Problem Solving tools through in-house workshops.

• Enliven senses

– As employees learnt to solve problems, it was necessary to make them aware of problems that they would find at their work place.

– All employees were hence made aware of the "Eight Types of Abnormalities

– Following this training, problems started becoming apparent to employees, thereby improving their sense faculties.

• Competition

– Focus on achieving results in business processes.

– For this purpose, 14 fourteen business processes called Key Manufacturing Focused Areas (KMFAs) were identified and performance parameters in each were defined.

– Teams of various levels competed on these performance parameters to give speed and purpose to abnormality identification

• Recognition

– Various team level and individual recognitions were instituted with a dual purpose.

– In the first place, high performance when recognised, set examples for others to see and replicate, lending speed to excellence.

– Secondly, timely recognition of celebration further strengthened teams to restart cycles of deployment

• Leadership and employee participation

– providing a role model for all the initiatives being undertaken by the organisation.

– For example, "no helpers at shop floor" is the culture of Birla Cellulosic, which started with "no peons for top most executives".

– Senior executives frequently visited customers to understand their requirements and problems, and made additional efforts to resolve them.

– They encouraged all employees to visit customers in order to establish mutually beneficial relationships.

– Employees of Birla Cellulosic, starting with the technicians (generally referred to as workmen in other organisations) to the level of President, visited customers with a defined agenda to understand their needs and assist them.

– To help develop a learning culture, top leaders regularly received training inputs and, they in turn imparted training to various employees.

Social Security

• Retirement, disability, and survivor benefits paid by the government to the aged, former members of the labor force, the disabled, or their survivors.

• The social security legislation in India derives their strength and spirit from the Directive Principles of the State Policy as contained in the Constitution of India.

• These provide for mandatory social security benefits either solely at the cost of the employers or on the basis of joint contribution

• Social security is “a human right” as well as “a social and an economic necessity”.

– Powerful economic and social stabilizers

– Manifestation of inclusive growth

– Income security

– Tool to cope with life’s risk

SOCIAL SECURITY LAWS

• The Employees’ State Insurance Act, 1948

• The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952

• The Workmen’s Compensation Act, 1923

• The Maternity Benefit Act, 1961

• The Payment of Gratuity Act, 1972

Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 • Welfare legislation enacted for the purpose of

instituting a Provident Fund for employees working in factories and other establishments.

• Applicable to establishment employing 20 or more employees to establishment employing 20 or more employees.

• Implemented through the following three schemes:

– Employees’ Provident Funds Scheme, 1952

– Employees’ Deposit Linked Insurance Scheme, 1976

– Employees' Pension Scheme, 1995

Employees’ State Insurance Act, 1948

• Provides for health care and cash benefit payments in the case of sickness, maternity and employment injury.

– Applicable to non-seasonal factories using power and employing 10 or more employees and non-power using factories and certain other establishments employing 20 or more employees.

– Covers employees whose wages do not exceeds Rs. 15,000 per month

Payment of Gratuity Act, 1972

• Provides for payment of compulsory gratuity to employees at the time of termination of service either :

– on superannuation superannuation

– on retirement or resignation

– on death or disablement due to accident or disease.

• Applicable to establishment employing 10 or more employees

Maternity Benefit Act, 1961

• Enacted to promote the welfare of working women.

– Prohibits the working of pregnant women for a specified period before and after delivery.

– Provides for maternity leave and payment of certain monetary benefits for women workers

– subject to fulfillment of certain conditions during the period when they are out of employment on account of their pregnancy.

• Maximum period for which a woman can get maternity benefit is 12 weeks.

Workmen’s Compensation Act, 1923 • Imposes an obligation upon the employers to

pay compensation to workers for accidents arising out of and in course of employment.

• New Pension Scheme (NPS)

– NPS is a voluntary defined contribution pension system in India.

– NPS is managed, regulated and reviewed by Pension Fund Regulatory and Development

– Authority, Ministry of Finance, Government of India.

• All resident and non resident Indian citizen between the age of 18 and 60 years are eligible to join NPS; Foreign national employees cannot participate in the NPS.

Health and Safety

• India has a very poor health and safety record.

• Legislation exists - but not implemented

Constitutional Provision for Occupational Safety and Health

• Article 24 – No child below the age of fourteen years shall be employed to work in any factory or mine or engaged in other hazardous employment.

• Article 39 (e & f) - The state shall in particular direct its policy towards securing

– e) that the health and strength of workers, men and women, and the tender age of children are not abused

– citizens are not forced by economic necessity to enter vocations unsuited to their age and strength;

– children are given opportunities and facilities to develop in healthy manner

– Freedom and dignity and that childhood

• Article 42 – The state shall make provision for securing just and humane conditions of work and maternity relief

OSH Legislation

• The Factories Act 1948, amended 1954, 1970, 1976, 1987

• The Mines Act, 1952

• The Dock workers (safety, health and welfare) Act, 1986

• The Plantation Labour Act, 1951

• The Explosives Act, 1884

• The Petroleum Act, 1934

• The Insecticide Act, 1968

• The Indian Boilers Act, 1923

OSH Legislation

• The Factories Act 1948, amended 1954, 1970, 1976, 1987

• The Mines Act, 1952

• The Dock workers (safety, health and welfare) Act, 1986

• The Plantation Labour Act, 1951

• The Explosives Act, 1884

• The Petroleum Act, 1934

• The Insecticide Act, 1968

• The Indian Boilers Act, 1923

• The Indian Electricity Act, 1910

• The Dangerous Machines (Regulations) Act, 1983

• The Indian Atomic Energy Act, 1962

• The Radiological Protection Rules, 1971

• The Manufacture, Storage and Import of Hazardous Chemicals Rules, 1989

Factories Act – On health • to ensure cleanliness of the

workplace

• make effective arrangement for treatment and disposal of waste and effluent;

• make suitable and effective provisions for adequate ventilation;

• maintain temperatures to secure reasonable comfort for workers;

• remove any dust or fumes from the workplace which may be injurious to workers;

• prevent overcrowding by maintaining a specific cubic area for each worker;

• provide sufficient and suitable light;

• make suitable arrangements to provide clean drinking water conveniently situated for all workers and;

• provide suitable latrines and urinals to specified standards.

Factories Act – Safety • securely guarding all parts of

dangerous machinery;

• precautions for working on machinery;

• emergency devices for cutting off power;

• maintain hoists and lifts;

• lifting machines, chains, ropes, and other lifting tackle must be maintained in good condition;

• test pressurised vessels regularly;

• ensure walking surfaces are of sound construction;

• provide protective equipment;

• measures to remove gas and dust before entering confined places;

• measures to prevent fires.

The factory occupier must disclose information about

• dangers, health hazards, and measures to protect workers from substances or materials in manufacture, transportation, storage etc. to the workers, the chief factory inspector, and the local authority;

• safety and policy

• quantity and characteristics and disposal of substances and waste

• emergency plans to workers and the local public;

• handling, using, transportation, storage and disposal of hazardous substances to workers and the local public.

• The Factories Act also binds the employer to maintain up-to-date health records of workers, and to appoint a person experienced in handling hazardous substances to supervise handling, and provide protective measures and regular medical examinations.

• The Chief Factory Inspector of the Factory Inspectorate enforces The Factories Act.

Occupational Disease

• Bysinossis – caused by cotton dust in the textile industry.

• Asthma and allergies – grain and tea production.

• Chronic lung diseases such as silicosis and pneumoconiosis – due to mineral dust.

• Heavy metal poisoning especially lead, chromium, pesticide and other chemical poisoning

• Deafness – largely undiagnosed and unreported,

Labour Welfare

• Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages.

• helps in keeping the morale and motivation of the employees

Quality of work life -

IBM • Wages & benefits

• Working Hours

• Nondiscrimination & harassment

• Respect & dignity

• Freedom of association

• Health & safety

• Communications

• Support for employees & community involvement

Quality of Work Life –

TATA Group • Gifts & donations

• Health, safety & environment

• Ethical conduct

• Concurrent employment

• Citizenship

• Integrity of data furnished

• Reporting concerns

Quality of Work Life –

ING Mutual Funds • CSR-Pratham-orphanage

• Regular Offsite

• Lunch with CEO

• Interdepartmental Lunches

• Ideation Box (Suggestions)

• Product Champions (SWOT of product)

• Skip level meetings

• QC-Implementing

• Health Safety and Environment

Quality of Work Life –

Principal India AMC • Family Day- Wednesdays

• 5 Days working week

• Annual Rejuvenation with families

• Monthly Birthday Celebrations

• In House Gym

• Paternity Leave, Wedding Leave, Bereavement Leave

• Yoga

• Gymnasium Reimbursements

• Health Safety and Environment