UNIT - V
Human Relations
Human Relations is an area of management
practice which is concerned with the integration
of people into a work situation in a way that
motivates them to work productively,
cooperatively and with economic, psychological
and social environment.
Importance of Human
Relations
Higher performance
Optimum use of resources
Morale justification
Understanding of human factors
Approaches to Human
Relations
Negative Approach
Natural approach
Positive approach
Components of Human
Relations
Work Environment Leader
Work Work Group
Techniques of Human
Relations
Integration
Employee Participation
Congenial work Environment
Open Communication
Adaptive Leadership
Resolving Conflicts
Conditioning Behavior
Personnel Counseling
Collective Bargaining
“Collective Bargaining refers to a process
by which Employers on one hand and
representatives of Employees on other,
attempt to arrive at agreements covering the
conditions under which employees will
contribute and be compensated for their
services.”
Types of Collective Bargaining
Distributive Bargaining
Integrative Bargaining
Attitudinal Bargaining
Intra-organizational bargaining
Objectives of Collective
Bargaining
To maintain cordial relations between
Employer and the employee.
To ensure the participation of trade Unions in
industry.
To promote Industrial democracy.
To avoid the need for government
intervention as collective bargaining is a
Voluntary process.
Human Resource Audit
Objectives of Human Resource
Audit
To review the system of acquiring,
developing, allocating and utilizing human
resources in the organization.
To evaluate the extent to which line
managers have implemented the policies and
programmes
To identify the short comings ion the
management of human resources.
To evaluate the human resource staff.
Process of Human Resource
Audit
Scope
Approaches
Human
Resource
Functions Comparison
Outside Authority
Managerial
Compliance Human Evaluation
Resource Report
Statistical
Research
Employee Compliance
Satisfaction
MBO
Corporate
Strategy
Discipline
“Discipline may be considered as the
force that prompts individuals or groups to
observe rules, regulations, standards and
procedures deemed necessary for an
organization.”
- Richard D. Calhoon
Types of Discipline
PositiveDiscipline
Negative Discipline
Causes of Indiscipline
Ineffective leadership
Lack of well defined code of conduct
Faulty supervision
Divide and rule policy of management
Lack of promotional policy
Political and trade union influence
Low wages and poor working conditions
Uninteresting work
Unfair management practices
FORMS OF DISCIPLINARY ACTION
Oral warning
Written warning
Loss of privileges
Fines
Punitive Suspension
Withholding of Increments
Demotion
Termination
Discharge
Dismissal
Procedure for taking Disciplinary
Actions
Preliminary Investigation
Issue of a Charge sheet
Suspension Pending Enquiry
Notice of Enquiry
Conduct of Enquiry
Recording the Findings
Awarding Punishment
Communicating Punishment
Principles of Industrial
Discipline
Knowledge of Rules
Prompt Action
Fair Action
Well-defined procedure
Constructive approach
Review and Revision
Statutory Provisions Concerning
Discipline
Industrial Employment ( Standing Orders)
Act,1946
The Industrial Disputes Act,1947
The Payment of Wages Act,1936
RED HOT-STOVE RULE
Dougles McGregor has suggested this rule to
guide managers in enforcing DISCIPLINE.
Important characteristics –
Immediately
Warning
Consistent
Impersonal
Commensurate (intensity)
Grievances
Grievance
“Any real or imagined feeling of personal
injustice which an employee has concerning
his employment relationship is known as the
GRIEVANCE.”
- Keith Davis
Characteristics of Grievances
Any form of discontent or dissatisfaction
Dissatisfaction must be arise due to Employment and due
to personal or family problems
May be in written or verbal form
May be valid or invalid, legitimate or irrational, justifiable or
ridiculous
Basically due to non fulfillment of one’s expectations from
the organization
Forms of Grievances
Factual
Imaginary
Disguised
Causes of Grievances
Grievances arising out of working conditions
Grievances arising from management policy
Grievances arising out of personal maladjustment
Grievances arising from alleged violation of:
- The collective bargaining agreement
- Company’s rules and regulations
- Central or State laws
Understanding Employee
Grievances
Exitinterview
Opinion surveys
Gripe boxes
Open door policy
Observations
Effects of Grievances
On the Employees
On the Managers
On the Production
Machinery for redressal of
Grievances
STEP IV Arbitration
STEP III Top Management Top Union Leaders
Middle Level Union
STEP IIMiddle Management Leaders
STEP IFront-line Supervisor Union Representatives
Aggrieved Employee
Essentials of a Sound Grievance
Procedure
Conformity with Statutory Provisions
Acceptability
Promptness
Simplicity
Training
Follow-up
Grievance Redressal in Indian
Industry
The Industrial Employment ( Standing
Orders) Act,1946
The Factories Act,1948
The Industrial Dispute Act,1947
Employee Empowerment
“Empowerment is any process that provides
greater authority through the sharing of relevant
information and the provision of control over
factors affecting job Performance.”
- John Newstrom and Keith Devis
Elements of Empowerment
Self-competence
Meaningfulness
Impact (Influence)
Approaches to Empowerment
Helping employees achieve Job Mastery
Allowing more Control
Providing successful Role Models
Giving more support
Importance of Empowerment
Knowledge Workers
Cut throat competition
Speed and flexibility
Globalization
Barriers to Empowerment
Incongruent organizational culture
Love for authority
Fear of retribution by superiors
Fear of a retribution by subordinates
Dependency of subordinates
Participative Management
“Participation refers to the mental and
emotional involvement of a person in a group
situation which encourages him to contribute
to group goals and share in the responsibility
of achieving them.”
- Keith Device
Degrees of Participation
Communication
Consultation
Code-termination
Self management
Objectives of Worker’s
Participation in management
Economic Objective
Social Objective
Psychological objectives
Importance of Worker’s
Participation in management
Mutual understanding
Higher productivity
Industrial harmony
Industrial democracy
Less resistance to change
Creativity and innovation
Forms of Worker’s
Participation in management
Suggestion schemes
Workers committee
Joint management council
Worker directors
Co-partnership
Business Ethics
Business Ethics
Guide for behavior
CORE VALUES
Transparency
Fairness
Accountability
Responsibility
Four corporate governance ethical
values (“RAFT”)
1. Responsibility
“The board should assume responsibility for the
company’s assets and actions and be willing to take
corrective actions to keep the company on its
strategic path.”
2. Accountability
“The board should be able to justify its decisions and
actions to stakeholders affected by the company and
give account to those stakeholders who require the
board to do so
3. Fairness
“In its decisions and actions, the board should ensure
that it gives fair consideration to the interests of all
stakeholders of the company.”
4. Transparency
“The board should disclose information in a manner
that enables stakeholders to make a meaningful
analysis of the company’s actions.”
“Ethics of governance” — Five ethical
duties of directors are grounded in
the four corporate governance values
1. Conscience
“A director should act with intellectual honesty in
the best interest of the company. Conflicts of interest
should be avoided. Independence of mind should
prevail to ensure the best interest of the company and
its stakeholders are served.”
2. Care
“A director should devote serious attention to the
affairs of the company. All relevant information
required for exercising effective control and providing
innovative direction to the company need to be
acquired.”
3. Competence
“A director should have the knowledge and skills
required for governing a company effectively. This
competence should be developed continuously.
Willingness to be regularly reviewed for competence is
a prerequisite.”
4. Commitment
“A director should be diligent in performing director’s
duties. Sufficient time should be devoted to company
affairs. Effort needs to be put into ensuring company
performance and conformance.”
5. Courage
“A director should have the courage to take the risks
associated with directing a successful sustainable
enterprise, but also the courage to act with integrity
in all board decisions and activities.”
Case Study- 4
Ramesh, AGM, Materials, is fuming and fretting. He bumped
into Kailash, G.M. Materials, threw the resignation letter on his
table, shouted and walked out of the room swiftly.
Ramesh has reason for his sudden outburst. He has been
driven to the wall. Perhaps, details of the story will tell the
reasons for Ramesh’s is bill and why he put in his papers, barely
four months after he took up his present assignment.
The year was 1995 when Ramesh quite the prestigious
SAIL plant at Vishakhapatnam. As a manager material, Ramesh
engaged powers------- he could even place an order for materials
worth Rs. 25 lakh. He needed nobody’s prior approval.
Ramesh joined a pulp making plant located at Harihar in
Karnataka, as AGM Materials. The plant is a part of the
multiproduct and multi plant conglomerate owned by a
prestigious business house in India. Obviously, perks,
designation and reputation of the conglomerate hired Ramesh
away from the public sector steel monolith.
When he joined the eucalyptus pulp making company, little
did Ramesh realize that he needed prior approval to place an
order for materials worth Rs.12 lakh. He had presumed that he
had the authority to place an order by himself worth half the
amount of what he used to do at the mega steel maker. He
placed the order; materials arrived, were received, accepted and
used up in the plant.
Trouble started when the bill for Rs. 12 lakh came from the
vendor. The accounts department withheld payment for the
reason that the bill was not endorsed by Kailash. Kailash refused
to sign of the bill as his approval was not taken by Ramesh
before placing the order.
Remesh felt fumigated and cheated. A brief encounter with
Kailash only aggravated the problem. Ramesh was curtly told
that he should have known company rules before venturing.
Remesh decided to quit.
Questions:-
1. Where have the system gone wrong?
2. Was it really Ramesh’s mistake? It so was
there any solution?
3. Does the company have an orientation
programme? If yes, how effective is it?
4. If you were Remesh what would have you
done?
