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Human Resource Management

Human Resource Management

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Industrial Relations

It refers to the employer – employee relations

i.e. relationship which emerges from day to day

association of management and labor

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Participants in IR

Employees & Organizations (TU)

Management

Government

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Main purpose of IR• Develop healthy labor-mgmt relations

– Collective Bargaining– Trade union relations– Discipline

• Maintenance of Industrial Peace– Industrial Disputes Act

• To promote Industrial Democracy– Workers Participation in mgmt, Joint mgmt

councils

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Collective Bargaining

• Term coined by Sidney & Beatrice Webb

• The method of determining working conditions and terms of employment through negotiations

“ Negotiation about working conditions & terms of

employment between an employer, a group of employers or

one or more employers organizations, on the one hand, and

one or more representative workers’ organizations on the

other, with a view to reaching an agreement.” International

Labor Organization, Geneva, 1960]

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Objectives

• To settle disputes relating to wages, working conditions

• To protect interests of workers through collective action

• To resolve differences between mgmt & workers through

voluntary negotiations

• To avoid third party interventions

• Facilitate reaching a solution acceptable to both parties

• Preventing strikes & lock-outs to enhance productivity

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CB conducted at 3 levels

1. Plant level

(Union – Plant)

2. Industry Level

(Rashtriya Mill Mazdoor Sabha – Mill Owners of

Mumbai)

3. National Level

(INTUC & Mgmt)

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CB Contracts and Process

• Bipartite Agreements – Voluntary

• Bipartite Settlements – Regd. before conciliator

Collective Bargaining Process

• Pre-negotiation Phase

• Selection of Negotiators

• Bargaining

• Writing the Contract

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Pre-negotiation Phase

Preparation stage

• Information gathering – Internal & External

sources

• Understanding the other party

Selection of Negotiators

• Division heads

• Negotiating skills

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Bargaining

Distributive vs. Integrative Strategy

Strategy – Plan & Policies

Tactics- Theatrics

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Issues in Bargaining

Bargaining pressures• Strikes• Picketing• Boycott• lockoutSolutions• Mediation• Arbitration

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Writing the Contract

• Contract with clauses– Wages– Working hours– Promotion– Overtime– Incentives– Welfare measures

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Workers participation in Management

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Participation

• It is a mental & emotional involvement of a

person in a group situation which encourages him

to contribute to group goals and share

responsibility with them

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WPM

• A mechanism where workers have a say in the

decision making process of an organization

• Based on trust, info-sharing, and mutual problem

solving

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Objective of WPM• Freedom for self expression• Feeling of Pride and importance• Sense of belonging• Integration of workers interest with that of mgmt• Avoid industrial conflicts• Industrial Democracy• Mutual trust & respect• More committed workers• Upward communication

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Factors determining WPM

• Situational – Autonomy, Technology, Size, Organization structure

• Human – Workers attitude and capacity to participate, Managerial attitude

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Levels of Participation

• Informative Level – Sharing of information

• Consultative – Consult on matters related to

welfare

• Associative – Accept suggestion for solving

problems

• Administrative – discuss implementation of

decisions

• Decisive – joint decision making at all levels

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Forms of Participation

• Suggestion schemes• Consultation• Joint administration• Joint Decision making• Collective Bargaining• Workers Participation in share capital

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WPM in India

• IDA, 1947 – Works Committees • ILC, 1957 – JMC• Management & Miscellaneous Scheme, 1970 –

Workers rep on Board (in some public and private sector enterprises)

• 1975 – WPM scheme – 2 tier model– Shop council, Joint council

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Works Committee

• Provided under Industrial Disputes Act, 1947 (Sec-3)

• Rep of employers + employees• Every industry > 100 employees• Aim – Harmonious IR• Functions

– Discuss conditions of work,– Administer welfare funds– Educational & recreational activities– Encourage thrift & savings

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Works Committee

Reasons for Failure (NCL)• Advisory nature of recommendations• Vagueness regarding exact scope and functions• Inter union rivalries• Reluctance of employers

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Works Committee

Suggestions for effective WC by NCL• More responsive attitude of management• Adequate support of unions• Proper appreciation of scope & functions of WC• Whole hearted implementation of

recommendations of WC

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Joint Management Councils

• Based on Recommendations of ILC tripartite sub committee formed

• Objective of JMC – increased association, improve operational efficiency, welfare facilities, educate workers

• Tripartite committee recommendations– >500employees– Fair record of IR– Well organized TU– Functions: right to be consulted on some

matters, right to receive info, administrative responsibility