EMPLOYEE RELATION AND REWARD

Dinesh KCNarendra YadavShreejana ShresthaAnkit KhanalSanju Shakya

EMPLOYEE RELATION AND REWARD

A well planned Employee Relations and reward system is a key to success for healthy environment, balanced relation where employer & employee both are completely satisfied and finally to avoid all the conflicts at work place to get desired results to reached the organizational goals.

Employee Relations And RewardThe term 'employee relations' refers to a company's efforts to manage relationships between employers and employees.

An organization with a good employee relations program provides fair and consistent treatment to all employees so they will be committed to their jobs and loyal to the company.

ImportanceTo develop and maintain harmonious relations between management and labour so essential for higher productivity of labour and industrial progress in the country.

To safeguard the interests of labour as well as management by securing the highest level of mutual understanding and goodwill between all sections in industry.

Cont……

• To avoid all forms of industrial conflict so as to ensure industrial peace by providing better working and living standards to workers.

• To raise productivity in an era of full employment by reducing the tendency of higher labour turnover and absenteeism

DEFINATIONS AND CONCEPTS • Employee relations consist of all those areas of human resource management that involve relationships with

• Relationship will be concerned with the agreement of term and conditions of employment and with issues arising from employment.

• Employee relations practices include formal processes, procedures and channels of communication.

Employee- Directly

Collective agreements where

trade unions are recognized.

• Employee relations programs focus on issues affecting employees, such as

Pay and Benefits

Work-life Balance

Safe working

Conditions

Out View on ER• Employee Relation is a much broad concept. It is one of the most

important function of the management that is take care by HR department. ER department takes care of

•Employee Grievances•Employee recognitionboosting the morale of employeesto make the working environment more healthy,fulfills the management’s expectations and maintain the work culture and ethics.

Type of Relationship Within The Organization

Employer & Employee Relationship(Downward

Communication)

•Training & Induction•Benefits•Safety•Career Development & Job Opportunities•Stress Management & Recreation Facilities•Collective Problem Solving•Involvement & Engagement•Reward & Recognition

Employees & Employer Relationship

(Upward Communication)

•Feed Back•Performance Appraisal

Among Themselves (Horizontal

Communication)

•Annual Events•Welfare Activities

Factors Influencing Employee Relations

• Institutional Factor• Economic Factors• Technological Factors • Psychological Factors• Political and legal factors • Global Factors

Institutional FactorsHR policies and practicesOrganizational climate and culture and value systemAdaptability to changeCodes of conduct Collective bargaining agreements Labor unionsEmployers’ organizations/ Federations

Economic FactorsType of ownership: public or private limited, Whether domestic or MNC, Govt. or private sectorNature and composition of the workforceThe source of labour Labor market statusDisparity of wages between groupsLevel of unemployment

Technological Factors Work methodsType of technologyRate of technology changeAbility of Organizations and people to cope with change

Psychological Factors Owners’ attitudePerception of the workforceWorkers’ attitude towards work Their motivation, interest, dissatisfaction and boredom leading from man- machine interface.These have a great impact on job and personal life factors and hence indirectly impact ER Political And Legal Factors

Prevalent Political PhilosophyAttitude of governmentThe ruling party/ ideologyLabour laws and The legal framework for IR Changes in the above framework

Determining Factors Of Employee Relation

• Better education• Nature of industry • Monetary benefits• Safety & security • Grievance handling • Recognition & appreciation • Scope for advancement • Style of management • Participation in decision making

Issues in ERThese emerging issues will have an influence upon your

workplace. An awareness of these issues will help management to better plan and respond to changes in the workplace.

Why these issues/ How to mitigate employee relation

issues?• Reward and recognition.• Remuneration• Facilities and support

INTRODUCTION: A thing given in recognition of one's service, effort, or

achievement. Reward refer all of the monetary, non-monetary and

psychological payments that an organization provides for its employees in exchange for the work they perform.

Reward is an objective way to describe the positive value an individual ascribes to an object, behavioral act or an internal physical state.

Why Reward are given ?

• Express appreciation• Recognize values• Provide encouragement• Compensate for taking and

sharing risk• Provide choices• Simply make things fun

Types of reward:

Types Of Reward 1. Intrinsic versus extrinsic rewards2. Financial versus Non Financial rewards:3. Performance based versus membership

based reward

Benefits of employee reward system: Benefits: Helps an employer differentiate between the performance of high and low performing

employees. Allows an employer to differentiate between the performance of the company as a whole

and the performance of an individual.

Challenges of employee reward system:

Here is no way, with 100% accuracy, to differentiate the performance of various employees to determine who is most deserving.

Reward not understood by people. Reward not linked to company business. Rewards not linked to the job to be performed.• Inferiority complex for subordinates.• Nepotism and favoritism

Rewards not linked to the labor market: Rewards not linked to individual employee needs:

Some Best Practices

1. System Oriented Management Run Company2. Handsome Remuneration with Performance Based Reward System.3. Performance Based Growth Opportunities4. Opportunity to Work in Different Areas (Inter-Department Shifts,

Sister/Group Company Shifts)5. Training and ExposureTraining Opportunities:• In-house and abroad trainings (XLRI, IIM etc.)• Exposures: International Plant and Market Visits; Participation in

Workshops, Seminars, Auto Shows.

Sipradi’s Key Platforms of Relationship & Reward

Benefits & Welfare

Monetary Benefits

Industry Competitive Salary Package

Performance based Incentive

Annual Bonus

Festival Bonus

Medical & Accidental Insurance

Performance based Increments

Employee Welfare

Housing loan facilitiesWelfare loan facilitiesVehicle loan facilitiesProvisions Gratuity

Non Monetary Benefits

Performance based promotions and transparent career ladder

Training and development programs

International Exposure Visits

Some Best PracticesSurya Nepal Pvt. Ltd.

Surya Nepal Private Limited (SNPL) is an Indo-Nepal-UK joint venture, which started operations in Nepal in 1986. Surya Nepal Private Limited is one of the largest private sector enterprises in Nepal and a subsidiary of ITC Limited, India. The balance shares are held by Local Nepalese individuals & Corporate shareholders and British American Tobacco (Investment) Limited, UK.SNPL is currently engaged in the business of Cigarettes, Safety Matches, Agarbatti and Readymade Garments in Nepal.  SNPL’s commitment to its corporate vision “enduring value for all stakeholders” has been uncompromising through the years and is reflected in every product, process and service provided by the company.

Sipradi’s Key Platforms of Relationship & Reward

1.System driven management 2. HR strategies based on company strategies 3. Most recruitment based on reference 4. High Training and Development opportunities to each employee. Tailormade/specialized training programs (even in foreign countries) 5. Birthday gifts, get together, picnics, sport weeks, cultural events, etc (social events) 6. Medical insurance comparable to best in the industry 7. Housing facility to employees – ISO & OHSAS certified8. Custom Employee Engagement program across the units. Welfare programs catering to the extracurricular requirements of employee and family members 9. Salary based on industry survey 10. Custom recognition programs in all units

11. Participative IR management 12. Loan scheme as per level of employment 13. Subsidized canteen 14. Annual Performance appraisal system and planned succession planning 15. Systems and checks to ensure 100% statutory compliance Compliant management practices 17. Presence of long term Strategies 18. Good rapport with government bodies and stakeholders 19. Periodical medical checks based on age. 20. Employee Mentorship program 21. Custom CSR programs across all units 22. World class EHS compliance 23. Automated ERP based payroll systems

What does statistics says about reward system:

• Nearly 75% of organizations have a reward program (despite the fact that only 58% of employees think that their organizations have reward programs)

• Organizations with recognition and reward programs which are highly effective at enabling employee engagement had 31% lower voluntary turnover than organizations with ineffective recognition programs (Bersin by Deloitte, The State of Employee Recognition, 2012)

• Only 14% of organizations provide managers with the necessary tools for rewards and recognition (Aberdeen Group, The Power of Employee Recognition, 2013)

• 46% of senior managers view recognition programs as an investment rather than an expense. (WorldatWork, Trends in Employee Recognition, 2013)

• In 2013, “67% of Best-in-Class organizations have a formal recognition program in place, compared to 58% of Best-in-Class organizations in 2012.” (Aberdeen Group, The Power of Employee Recognition, 2013)

• A full 14% [of companies] indicated that their organization features [reward] programs regularly when recruiting.” (WorldatWork, Trends in Employee Recognition,2011)

• Organizations with strategic recognition and reward programs in place exhibit 28.6% lower frustration levels than companies without recognition programs. (SHRM/Globoforce Employee Recognition Survey, 2012)

• When companies spend 1% or more of payroll on recognition, 85% see a positive impact on engagement. (SHRM/Globoforce Employee Recognition Survey, 2012)

A Meta-Analysis of the Relationship Between Organizational

Citizenship Behavior and Counterproductive Work Behavior. Job performance is increasingly being seen to encompass constructs such as organizational citizenship behavior (OCB) and counterproductive work behavior (CWB). To clarify the OCB-CWB relationship, a meta-analysis was conducted indicate a modest. The relationship strength did not increase appreciably when the target of the behavior (the organization vs. other employees) was the same. Moreover, OCB and CWB exhibited somewhat distinct patterns of relationships with antecedents. The OCB-CWB relationship was moderated by the source of the ratings, the presence of antithetical items, and the type of response options. An employee-centric perspective is proposed whereby both OCB and CWB are perceived as adaptive behavior. Implications for organizations are discussed. (PsycINFO Database Record (c) 2016 APA, all rights reserved)

A critical examination of Hofstede's thesis and its application to international reward management

Hofstede's model has been extensively used and applied in international management. This study begins with a critique of Hofstede's thesis.

The applicability of his framework is then tested using a cross-cultural comparison of reward preferences in four countries.

The findings reveal that although his framework provides both theoretical and practical contributions to the reward arena, the proposition that human values are conditioned solely by national culture ignores the potential influence of a variety of other contextual factors.

It is essential that people are comfortable with each other and work together as a single unit towards a common goal.

It is important that employees share a healthy relation with each other at the work place. Let us find out why employee relations are important in an organization

It is important that the management promotes healthy employee relations at workplace to extract the best out of each individual through appropriate reward system.

Thank you!

Reference:• References• http://hrmpractice.com/types-of-rewards/• https://www.ukessays.com/essays/management/definition-and-objectives-of-reward-system-

management-essay.php• http://www.slideshare.net/rajeevgupta/rewards-and-recognition• https://www.linkedin.com/pulse/key-challenges-employee-reward-systems-indranil-gupta