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- Recruitment is the process of identifying, screening and hiring the most suitable candidate for a job
vacancy.
- The candidate might be hired internally or from external sources
- The process must be performed in timely and cost effective manner
- It can also be termed as a process linking the employers and the employees
- Attract the maximum number of candidates to the organization and encourage them to apply
- Create strong database and select the best candidate for the position
- Ascertain the current and future manpower requirements of the organization
- Make the hiring exercise a cost effective one
- To identify the potential candidates within the organization for future man power requirements
- To identify the outside candidates and hire them to meet the man power requirements
- To establish various sources of candidates
- To help in increasing the success of hiring process
The recruitment process tries to get the best manpower for the organization. It can be considered as
the first strategic step towards the success of an organization.
There can be two kinds of sources of recruitment for organizations - Internal and External.
Internal recruitment - It means getting the candidate from within the organization to fulfil a
vacancy. Internal recruitment can be done by:
External recruitment - It means getting the absolutely new candidate to the company. The sources
of these employees could be many:
There can be various internal and external factors which affect the recruitment process.
Internal factors - The factors which are under the control of organization are called internal
factors.
These could be -
External factors - These are the factors which are not under the control of the organization.
These could be -
A good recruitment policy helps the organization in developing an effective recruitment process. It
can be termed as the first step in developing an efficient recruitment process. A recruitment policy
defines the recruitment objectives and clearly defines the framework to work within.
Various factors which can affect the recruitment policy of a company are:
- Its objectives
- Policies of the competitors
- Government laws - Social and economic
- Political environment
- Cost of recruitment
- Time available
- Preferred recruitment sources
- Terms of recruitment
- Sources of recruitment
- Using the services of placement agents
- Payment terms and conditions for placement agents
- Recruitment of contractual employees
- Obtaining requirements from departments
- Selection process
- Employment terms and conditions
Many organizations outsource their recruitment services to the placement agencies. The main
advantages of doing so are as follows:
Poaching in recruitment means hiring the employee of a competitor who is working in the same
capacity as desired by you. This is a major challenge faced by the HR managers as it causes the
leakage of talent from an organization and effects its productivity.
The employee is usually hired by offering him better salary and perks.
- Recruitment aims at searching for the talent and promoting the candidates to apply for the position
while selection is the process of screening the candidates to fill a position with the most suitable
candidate.
- Recruitment process get a pool of candidates for the selection process to work and choose the
best one.
- Recruitment encourages more and more people to apply while selection eliminates unsuitable
candidates to zero down on the best one.
- There is no contractual agreement between the employee and the employer in the recruitment
process while after the selection a contract is agreed upon by the employee and the employer.
- The system helps in efficient management of system by automatically maintaining the database of
candidates.
- It works as a good interface between various parties involved in the whole process
Recruitment is a time and money consuming activity. In order to maximize the ROI through
recruitment activities, a company should keep following things in mind:
- Clearly define the achievements you expect from the recruitment process. Establishing the clear
goals doesn't leave a place for confusion in the system.
- Develop effective ways to measure critical results.
- Precise estimation of time and cost of recruitment.
- Ensure that the people working in the recruitment process are well trained.
- Estimate the tangible and intangible benefits that have come from the recruitment exercise.
Explain the process of recruitment through placement agents.
What qualities would you look for in consultants before getting them on
board for your recruitment activities?
If a company decides to outsource its recruitment activities, it looks for a consultant to do this job.
Following are the important qualities, a company should look for in the consultant before hiring them
-
The purpose of a recruitment strategy is to hire the best talent a company desires in a timely and
cost effective manner. Following are the main elements of an effective recruitment strategy:
If you are required to recruit expats, what qualities will you try to judge
during the interview?
When there is a shortage of skills and talents at a particular geographical location, the company
tries to hire people from other geographical locations. These people are called expats. Sometimes
the companies require only expats for certain positions - depending on their recruitment strategy.
While hiring expats it is important to judge following qualities in them:
Equal employment opportunity means an equal and fair treatment for all people. There is no
discrimination among the employees or candidates on the basis of:
race, age, sex, marital status, disability, sexuality, pregnancy etc.
Equal employment Opportunities help in overall development of both the society as well as the
organization. They help the organizations in creating a good image for themselves and discharging
their social responsibilities.
Motivation can be defined as the enthusiasm of an employee which causes him to take actions at work.
What kind of work culture do you think increases the motivation level of
an employee?
Following are some of the characteristics of the culture that increases motivation level of an employee:
Frederick Taylor put forward a theory about worker’s motivation. Its main features are:
Mayo’s theory believes that money is not the only motivation for workers. They are highly motivated by
factors like:
i.) Taylor’s theory focuses on the negative aspect of a worker’s behaviour while Mayo’s theory focuses on
positive aspects.
ii.) Taylor’s theory treats money as the biggest motivation while Mayo’s theory lays more emphasis on non-
monetary factors.
- Maslow’s theory of hierarchy of needs believes that each individual has some needs arranged in
hierarchical order. Only when a lower need is satisfied, does the higher need come into picture.
- Thus the incentives offered to the workers at each level have to be different.
These needs are classified as grouped as below:
Herzberg came out with two-factor theory of motivation which believed that there are certain factors which
enthuse motivation in workers while others de- motivate them. The factors demotivating the workers are
called the hygiene factors.
- Recognition
- Challenges
- Responsibility
The other set of factors are hygiene factors – their presence doesn’t motivate the employees but their
absence surely de-motivates them. For e.g. –
- Work conditions
- Salary
- Job security etc.
Theory X and Y of motivation was proposed by Douglas McGregor. The major difference between these
theories are:
- Theory X takes a negative view of the employees while the Theory Y takes a positive view.
- Theory X believes that employees are lazy and do not like work while Theory Y believes that employees
enjoy work.
- Theory X believes that money is the only motivation for work while Theory Y believes that the satisfaction
that employees achieve after doing a work well is a bigger motivation.
- Theory X believes in doing the business in an authoritarian way while Theory Y tries to remove the barriers
employees find in the way of their work.
Any system that you espouse to develop the remuneration system must be comprehensible, practical and
acceptable. The remuneration system must comprise of 2 components, base rate and the scope for
increasing the base rate.
While determining the system you should essentially take into consideration the below mentioned points in
the mentioned order.
a. Job Descriptions: With the help of Job Descriptions you can determine the characteristics of the
particular job and will also help in determining the factors like skill, experience, effort and working
environment.
b. Job Evaluation: With the help of job evaluation you can again determine the compensable factors. There
are various analytical as well as non - analytical methods to evaluate a job, for e.g., point ranking and factor
comparison method in analytical ways and Ranking and Job Grading in Non – analytical methods. By
conducting the job evaluation you can determine the worth of the job done by the employee.
c. Job Hierarchy: Once you have taken care of assessing the compensable factor, now is the time when you
will look into the hierarchy of the job and evaluate where in the hierarchy the particular job falls in, is it in the
top or middle or the lower side of the hierarchy.
d. Pay Surveys: Once you have established the hierarchy of the job, you now shall establish the pay
differentials. For this you need to conduct a market survey to see what the prevailing rates of the job are in
the same industry and set your pay scale in line with the market standards.
e. Pricing Jobs: Once you are done with the survey, you match your salary for the job and the salary paid in
the market for the same job.
And then you decide the pay level for each job hierarchy designed by you and then grouping the different pay
levels into pay grades.
Concocting the remuneration structure based on the merit pay is a more intricate practice than the traditional
compensation plans. In the merit pay plan, performance is measured in contradiction to standards and the
results are used to intensify the pay grades and determine promotions rather than using the traditional way of
performance appraisals that focus on equitable pay among colleagues.
- Helps in boosting the motivation of the employee and hence in turn improves employee satisfaction
resulting into better performance of the individual.
- As the name suggests, it appreciates the performance of the employee rather than taking into consideration
any other factor such as skills or reference from a senior employee.
- The employee is clear on his performance targets and works accordingly to reach the performance targets.
- With this method the company is able to retain the highly motivated employees.
No, Salary is not just the motivating factor, but is a huge factor that helps in keeping the employee motivated.
Apart from salary, the work space environment, relationship with seniors and contemporaries also matter a
lot.
These perceptions of equity directly impact motivation, commitment and on the job performance. That is the
employees should not get the feeling that two people on the same level are getting different pays.
b. Agency Theory: the agency is responsible to pay to their employees. On one side the employees want
the agency to increase their remuneration whereas on the other hand, the agency is looking for opportunities
where they can minimise the costs. In such a case the agency theory focusses on contracting theory, i.e., the
employers should choose a contracting scheme like merit pay or outcome oriented options to pay their
employees.
c. Reinforcement and Expectant Theory: This theory emphasises the importance of a person actually
experiencing the award, i.e. if you reward the constantly high performers, not only will they but the others will
also be motivated to increase their performance standards.
Whereas the Expectant theory focusses on the link between rewards and behaviour; expectancy perceptions
often have more to do with job design and training rather than on the pay systems.
Many factors influence the remuneration of the employees. The factors can be widely categorized into
external and internal factors.
- Labour Market – The demand and supply of the labour influence the remuneration of the employees. If the
demand of any kind of labour goes high, the salary for the same reduces as you have numerous people who
are willing to do the job and if the demand is low then the wages are high as that will be a niche market.
- Cost of Living – The main purpose to include this section is that at any point in time of the prices increase
that should not affect the salary of the employee. A rise in cost of living is usually compensated by Dearness
Allowance.
- Economy – When recession hits the job market, it is but natural that the remuneration of the employee
suffers a lot.
- Business strategy – The overall strategy that a company pursues should determine the remuneration to
be paid to the employees. When a particular company’s strategy focuses on rapid growth they need to pay
more to the employees
- Job evaluation and Performance Appraisal – Job evaluation helps establish satisfactory wage
differentials among jobs; whereas performance appraisal increases the monetary benefits based on the
employee’s performance.
a. Wages and Salary – wages are paid on an hourly basis whereas the salary is on a monthly basis. Both
wage and salary are subject to annual increment. The wage and salary differ from employee to employee
based on their knowledge, area of work and other responsibilities carried out on the job.
b. Incentives – Incentives are paid over and above the salary of the employee. Usually incentives are
regulated by the performance of the employee.
c. Fringe Benefits – These include benefits like, PF, gratuity, medical care, insurance, canteen, uniform etc.
d. Perquisites – Perquisites are usually paid to the top notch employees of the company like CEO, COO,
and CFO and so on. They include Car Company, club memberships, holidays, furnished homes. etc.
e. Non – monetary benefits – These include challenging job responsibilities, recognition of merit, growth
prospects, comfortable working condition and flexitime.
What importance does an ideal remuneration system carry?
Salary is a big motivational factor to help in retaining your employees and to keep them motivated as well as
to increase their productivity. It also helps in reducing absenteeism from work. If the pay levels are not
satisfactory, they will keep looking for a change and as soon as they will get a good opportunity they would
just leave your company and go.
a. Team – based Pay – Teams are empowered to plan, control and improve the work processes and usually
have one common goal to be achieved. The ideal method to pay them is to pay the base salary to each
member along with the incentive based on their performance.
c. Contract employees – Contract employees are usually hired by a recruitment agency and the payment to
the contract employees is also done by the recruitment agency. This kind of payment is usually called as the
employee is on third party pay roll.
i.) To increases the employee effectiveness by helping them understand their role better.
ii.) To help the employees understand their strengths and weakness in the current role.
iii.) To help the managers in identifying the training needs of their sub-ordinates.
iv.) To improve the relationship between the line manager and his team members by making them realize
that they are dependent on each other for better performance.
v.) To help the line mangers and their team members in improving the communication by discussing the
problem in achieving the targets and finding the potential solutions.
vi.) To provide the employee an opportunity for self evaluation and self development which are important to
achieve the goals.
ix.) To collect the information about each employee through personal meeting which is useful in making
managerial decisions.
Many a times the performance appraisal system tries to assess the personality traits of its employees
through their line manager. There are two types of problems in this:
a.) The employees do not open up as they do not want any negative personality trait to be recorded in official
records.
b.) The line managers are not fully trained and capable of assessing the personality traits of employees.
i.) Identification of KPIs and target setting – periodically through a discussion between the employee and
his line manger
ii.) Identification of personal qualities required for the current and higher roles and developing them
iii.) Self appraisal – by the appraisee
iv.) Identification of factors which have helped and hindered in achieving the set goals.
v.) Discussion about the performance and counselling of the appraisee by the appraiser
viii.) Assessment by the superior – training and development needs, any rewards or punishments.
KPI – Key performance indices, as the name suggests is a list of parameters against which the performance
of an employee is measured. These indices are usually quantifiable in nature.
All these put together help in chalking out the employee’s career progression in the organization.
The purpose of the counselling interview conducted by the line manager is to help his subordinate in
objectively analyzing his performance. The information collected through the performance appraisal form and
interview helps the manager in conducting this counselling interview.
Explain:
a.) 180 degree performance appraisal system.
b.) 360 degree performance appraisal system.
a.) 180 degree performance appraisal system.
What can you aim to achieve through 360 degree performance appraisal
system?
We can aim to achieve the following through 360 degree performance appraisal system:
i.) Information about the strengths and weaknesses of an employee in a particular role
ii.) Identification of training and development needs to perform better in the current role and prepare for the
higher role.
iii.) Collect data as an objective basis for rewards and other decisions
iv.) Basis for performance based pay or awards
v.) Aligning individual and organizational goals
i.) Commitment from the top management to continuously develop the competencies of the employees
ii.) Proper implementation of various HR systems
iii.) Willingness of the management to let the employees learn from each other and their own mistakes.
iv.) Willingness of the management to spend time in providing feedback to their sub-ordinates
v.) Willingness of the management to accept the feedback from their sub-ordinates and peers.
vi.) Not too many status barriers and ego issues
vii.) Openness of the people to accept feedback and use it for development
viii.) Feedback is not used for political advantage
ix.) Emphasis on teamwork in the organization
x.) HR department is highly credible
xi.) High degree of process orientation in the organization
xii.) High value to the values in the organization
xiii.) Emphasis on building competencies
i.) Orientation – Information about the importance and details of the process is passed on to the participants.
Ii.) Questionnaire distribution
iii.) Monitoring and follow up
iv.) Data feeding and report generation
v.) Conducting the workshop
vi.) Counselling of employees
- This method is also called as linear rating scales or simple rating scales method
- Judgement about the performance are recorded on a scale
- The appraisers are given the forms which carries the various criteria on which the employees are to be
rated
- It is a simple and quick method, which makes it popular
- This method is developed to prevent the raters from rating too high or too low.
- In this method, the raters are required to spread their employee evaluations in a prescribed distribution.
- It eliminates central tendency and leniency biases.
What is training?
Training an erudition process that embroils the procurement of knowledge, honing of skills, rubrics, or change
in insolences and components to enhance the employees performance.
i.Training Need Analysis: The first step to make training effective for your employees is to make an analysis
on the skills that need to be trained on. Comprehensive need and skills analyses will help you define the
needs of your employees, which will assist you in knowing what kind of training program you need to define
for them.
ii.Why do they need training: You need to make your employees aware on the reasons as to why they
require that particular training? Once they will be convinced for the reasons they require training, they will
take more interest in the training.
iii.Contents of the training program: Once you have determined the needs and defined the training
program as per the needs analysis; you need to introduce the content of the training to the employees.
iv.Relevance of the training: There is enough workload on an employee, we all agree to that. So, if an
employee feels during the training session that it will not be advantageous for him in anyway, he will feel
frustrated to attend the training.
v.Meticulous training: The training provided to the employee should be exhaustive so that it trains the
employee to deal with every small and big situation in an effective manner.
vi.Evaluating the training: Once the training is over, you need to evaluate the effects of training on the
employees, i.e., you need to see whether the training improved the job performance of the employee or not.
Training: The emphasis of training is on the development of skills. Training is about divulging new
information and making us cognizant on how to make use of the information. Training is also hooked on to
the awareness of the trainer.
Learning: Learning is focused on how an individual smears to the new information that he has received from
training. Learning is the course of altering people’s understanding and slant to organizational as well as
personal vagaries. Learning is an elongated process that often integrates training, evolving and preparing
individuals with the tools to be competent enough to handle both known as well as unknown challenges.
Training: The emphasis of training is on the development of skills. Training is about divulging new
information and making us cognizant on how to make use of the information. Training is also hooked on to
the awareness of the trainer.
Development: Development is an incessant, general and vigorous expansion of skills and knowledge.
Development is targeted at long-term career growth rather than instantaneous performance.
- During interviews
- By taking feedback from the employees colleagues, business partners or through clients
- By conducting competency or knowledge tests
- While conducting performance appraisals
- If the employees have demanded for training from the management
- Based on industry specific research, for example, due to new additions in the industry.
One of the ways to identify the need for training is through performance appraisal. The motive of
performance appraisal is to not only judge the performance of the employee but also on the skills of the
employee. While conducting a performance appraisal you not only check whether the employee has been
able to achieve his targets but also a 360 degree feedback is taken from his colleagues, clients as well as
other business delegates with whom he is interacting with on a daily basis. Based on the evaluation of the
performance appraisal as well as the feedback forms his colleagues and other people involved for
businesses purposes you can identify the area on which the employee needs training.
Evaluating training is a continuous process. You need to keep evaluating the process right from analysing the
training need to the completion of training.
i. Participant satisfaction as well as reaction: This is the basic way of evaluating the results of training.
Often this is the starting and ending way to evaluate the results of training. How satisfied the participants are
from the training is the main criteria of evaluation and the positive results of the training are based on the
satisfaction of the employees.
ii. How much knowledge has been acquired from the training: The second stage of evaluating result is
how much knowledge has been imparted to the participants from the training. This is usually measured
through a questionnaire as well as how they are performing post the training.
iii. Behavioural Application: If the subject of the training is based on behavioural aspect, then post the
training the behaviour of the employee is tested to see how effective the training has been. The behaviour of
the employee could be based on the job front or basis on the relations with his contemporaries.
iv. Business improvement: From the training, how much has the business been profited? In other terms, it
is calculating the Return on Investment. Not only is the Return on Investment calculated but also has the
performance of the employee improved?
i. System Model: The system model consists of 5 phases which should be repeated on a regular basis to
make further improvements. Below given are the 5 steps in system model:
a. Analyse and Identify: You need to scrutinize the department, job, prerequisites of the employees, who
amongst the lot of employees entail for the training program, theme of training, expenditures involved in the
training.
b. Designing and providing the training: This step embroils categorising and developing the objectives of
training
c. Developing: Once you designed the objectives of the training, now is the time when you got to list down
the activities that you would be carrying forward in the training sessions.
d. Implementing: The most difficult part of the entire training process is this, the implementation. If you make
one small mistake and you entire planning will go for a toss and your training program will not be able to
reach its goal.
e. Evaluating: Evaluating each step is necessary. If you falter anywhere you will be able to rectify it on an
early stage hence reducing the chances of failure on each stage.
ii. Instructional System Development Model: Often referred to as the ISD model. A widely used model in
the organizations as this particular training model is in conjunction with performance and responsibilities of
the employee. This model also comprises of 5 phases, they are as follows:
a. Analysis: In this phase you analyse the key responsibilities as well as your target audience who will be
receiving the training. The analysis is done in three phases, they are:
b. Design: This is the planning stage of this model. The main purpose of this model is to transmute
appropriate content into succinct, behavioural objectives, generating the instructional design or commonly
known as “blue print” that will direct the development of all training resources, quizzes and approaches. The
design elements are:
c. Development: In this phase you translate the design into training materials. Using the elements from the
design phase you create your training material, i.e.,
d. Implementation: This is the phase where you are implementing by taking into consideration all the points
mentioned above. The implementation phase involves the logistical arrangements such as which place will
the training be conducted, setting the location as per the training environment, setting up and using the
equipment’s, etc. And then finally you do the delivery part of training, the most important and deciding factor
for the success or failure of the training.
e. Evaluation: Evaluation is necessary as you ought to know whether you have reached the desired goals or
not. Has the training put some effect on the trainees? You need to know all these details and hence
evaluation is necessary.
iii. Transitional Model: the transitional model is based on the vision mission and values of the organization.
Hence the attention is more on the organizational goals.
a. Coaching – The goal of coaching is to improve the performance of the employee. Coaching focuses on
the individual needs of an employee and is considered to be less formal than any other type of training.
b. Mentoring – There is a very thin line to differentiate between coaching and mentoring. Where coaching is
done online, mentoring is done offline and is just a help offered by one person to another in carrying out the
work without any hurdles.
c. Job rotation – Job rotation is usually done to give an enlarged perspective of the business or to give
global opportunities to the employee. It is mostly used for junior employees who can prospectively replace
senior level employees.
d. Job Instruction Technique – This training method focuses on knowledge, skills and attitude
development. It consists of 4 steps,
i. Plan – Making the trainer aware of the kind of work you carry.
ii. Present – the trainer presents the synopsis as well as the different aspects of the work
iii. Trial – You actually step into the shoes of the other person and perform the chores to gain practical
experience before taking over completely
iv. Follow up – the trainer follows up with the employee so as to avoid any kind of mistakes made by the
trainee.
a. Behaviour Modelling – In this kind of training the trainees are usually shown a video of a prospective
person, in which the behaviour or any particular process is video – taped for the trainees to learn from that
video and behave accordingly.
b. Business Games – are based on the rules, procedures, plans, relationships and functions performed by
the organization. This kind of training is usually imparted when any new employee joins the organization. In
the business games, the trainees are provided with restricted data on a precise circumstance and are probed
to make pronouncements in errand of the organization.
c. Case Studies – In this the trainees are provided with certain case studies, which the top management
either from the same organization or from any other organization in the same business must have dealt with.
Based on the case studies, the trainees are supposed to give their solutions on the same problem. The main
motive of this is to acquaint the trainees with the problem rather than the solution.
d. Equipment Stimulator - Equipment simulators are the mechanical devices that compel the novices to use
some actions, strategies, methods, trials, activities, or decision procedures they would use with apparatus
back on in the organizations.
e. In – basket technique – In this, some material in form of text or memos is given to the trainee. The text or
memos include information about the responsibilities to be carried out by the trainee. And with the data
available the trainee is supposed to respond to the questions posed by the trainer within a limited time frame.
Following which the trainer provides a feedback with the suitable options.
f. Role Plays – It is a technique in which the trainees are given certain roles to be enacted. This technique
helps in developing interpersonal as well as communication skills, team building skills as well as group
decision making skills amongst the employees.
a) Intelligent Tutorial System – This system makes use of artificial intelligence in training. In this, the
system acquires through the rejoinders of the trainee.
a. Demonstration – The trainer demonstrates the way an employee can perform his regular chores at the
work place while avoiding any complex situation. In case faced with any complex situation, the trainer also
helps in dealing those complex situations.
b. Discussions – In this, both the trainer as well as the trainee discusses the problems an employee faces on
the job front and the trainer then provides a solution to deal with the problems. The discussion could be
relating anything, problems while performing on job, interacting with colleagues, lack of confidence.
c. Lectures – It is the oldest form of imparting training. In fact no training can be complete without a part of
lecture in it. This form of training is usually imparted when there is no scope or very little scope of argument
amongst the trainer and the trainee. Lecture system is used when the trainer just has to impart certain
information to the trainee, i.e. may be about the vision, mission, and policies of the organization.
The objectives of the training department to identify the required training needs of an
organization and fill the gap with a host of training methods for the welfare of the organization
and employees on a whole.
What is the difference between training and development?
The basic difference between training and development is:
Training helps to make the employee of a company to be more effective and efficient in the
present role and responsibilities of the job i.e. fulfill short term needs of any company but
development helps to improve the overall personality dimensions of an employee to take up any
future assignments if any and better equipped to handle any critical situations might occur i.e.
fulfill long term needs of any company.
Off-the-job training is a type of learning process that usually occurs out of an actual work
environment. This involves case analysis, lectures, presentation, simulation games etc. to
imbibe the concepts and brainstorm ideas in an effective manner.
- Place (indoor/outdoor)
- Audio visual aids
- Relevant training materials
- Facilities
- Time schedule
- Non – visual aids
- Trainer
The trainer plays a pivotal role from start to end of the training that includes the
following:
- Training plan
- Timing of different training sessions
- Choosing the relevant training methods
- Preparing the training materials and aids
- Conducting training sessions and
- Evaluating the post training session
Communication within an organization is one of the key elements responsible for its success and congenial
atmosphere. Better communication in an organization brings following results:
Communication plays an extremely important role in the process of implementing change. Resistance to
change occurs because of:
- Fear of change
- Not being a part of the change process
- People moving away from their comfort zones
- Low level of trust In being able to manage change
- Wrong information about the need for change
However, all these problems can be better managed with open and clear communication.
In small to medium size organization usually it is the HR department which initiates and establishes the
process of internal communication. HR department is the one that lays down various employee related
policies and has the complete information about their implementation. So, HR department play a vital role in
the implementation of internal communication system in an organization.
What are the various tools that can be used for an effective internal
communication?
Various tools which can be used for an effective internal communication are:
Every organization requires some work ethics and disciplinary system to be followed for efficient working and
maintaining work culture. However it is a big challenge to ensure that the disciplinary system is properly
implemented.
Communication plays an effective role in efficient implementation of the system. Some of the activities that
can be done to ensure the implementation of an effective disciplinary system are:
A disciplinary action can invoke a feeling of mistrust among not only the employee against whom the action is
being taken but also his fellow employees.
In order to avoid this feeling of mistrust against the employer, it is important to:
And, all these can be achieved only if you have clear communication system in place.
The major difficulties faced by the organizations in implementation of an effective internal communication
system are:
Tools which you can use to communicate with virtual work force include:
i.) E-mails
ii.) Instant Messengers
iii.) VOIPs
iv.) Telephones
v.) Blogs
vi.) Forums
vii.) Intranet
viii.) Videos
ix.) Online document management systems
x.) Virtual Private Network
Tools which you can use for communication during crisis are:
Below given are the factors to be considered when you are planning to lay-off employees:
- Lack of funds – While the enterprise faces a fiscal crunch, the first thing to be scrutinized is the diminution in
staff levels.
- Looking for alternatives that abate the sway on employees in regards to their career options, e.g.,
temporary layoffs, referring them to another company, or freezing the hiring process.
- Looking for transferable employees, i.e. employees to whom you can transfer to any other department
provided they are qualified to carry out the job responsibilities in that particular department.
- If you are planning to lay off laborers, you need to give an advanced notice to the acting union especially in
those cases where 5 or more laborers from the same unit are being laid off.
- The other important factor that leads to lay off an employee is on ethical grounds, this may include, lying,
cheating or stealing in the office premises.
When planning to lay-off, it should be a combined decision from the HR department, Department Leadership
and the finance department to maintain the employer and employee relation.
- HR Department – HR managers play an imperative role while captivating the pronouncement on which
employee should be laid off.
- Department Leadership Input - The supervisor of the employee’s department, his decision on laying off
the employees is very critical. As the supervisor is the main analyser of the employee’s performance. And
hence while laying off poor performing employees; the supervisors input carry a lot of weightage.
- Finance Department - The department or employee in control of the firm's funds plays an essential role in
the decision-making, specifically when the syndicate is cutting redundancy pay checks as part of the layoff.
Pecuniary contemplation for laid off employees embraces more than just severance pay. It is then the HR
department; supervisors of the department and the finance head consult with each other to discourse the
monetary materials concomitant when you think of laying off employees.
Due to recession hitting the industry, layoffs have become quite common in each and every industry
prevalent in today’s time. Many employees are not aware about the rights that can safeguard their interests
and welfare till they have a new job in hand. Here are a few of the rights mentioned below:
- Final Pay: Final pay is nothing but the full and final laws applicable. The final payment laws differ from one
state to another. The final pay is usually paid off once your employment is over. Usually severance pay is not
included in the final pay.
- Severance Pay: Severance pay refers to the amount an employer pays to his employee along with his
salary. Severance pay is calculated in accordance with the salary of an employee.
- Discrimination: What is the reason that your boss is laying you off? If the reason is based on your age or
health issues you could fight a legal battle against your employer.
When can an employee being laid off expect his final pay check?
The payment of the employee is dependent on the type of lay off that he has been offered. If it is a short term
lay off, in that case the company is liable to pay him the amount within a time frame of 4 weeks, in-case if the
employer fails to do so, and the employee can either ask for his claim or he could report this legally while
claiming for the claim.
If the layoff is permanent one, for any reason be it closure of the company or on loss of ethical values on the
part of the employee, the company is liable to calculate and pay their till date dues on their last working days.
a. Employee's insurance benefits: Usually the medical insurance benefits ends on the last date of the
month that they are being laid off.
For example, if your last day of work is on 1st February, then your medical insurance benefits will end on
28th February. If you want to continue with your insurance benefits, you need to check this out with the
insurance regulating company and take the necessary actions as suggested by them.
b. Employee's retirement benefits: The employee stops gaining the retirement benefits once he has been
laid off. For example, the amount collected in the Employer’s Provident Fund can be withdrawn or transferred
as per the employee’s choice. For this he needs to inform his company on the same and let them know what
he will prefer to do with the EPF amount, he want a lump sum cash or wants to get it transferred. If you are
approaching the retirement age you can talk to the regulating company for your retirement benefits and you
could avail them within a period of 120 days.
The answer to this is yes, there are many alternatives instead of laying off employees especially in those
cases if the layoffs are due to lack of finances within the company.
a. Discussing it out with your employees: Tell your employees that the company is facing a financial
crunch and that they should come up with new ideas so that they could cut costs without affecting the
productivity of the employees.
b. Cutting extra costs: You could cut down cost by stop hiring people for the time being, reducing the
travels of your employees, cutting off their bonuses, etc.
c. Exchange of employees: If your company has a lot of other companies in the same brand name, you
could ask the parent company for staff from some other company under the same brand name to do a
particular task, this can be done if you are desperately looking to hire somebody
d. Reducing part time staff and contractors: Usually contractors and part time staff are paid more for their
work as compared to the full time workers. It may be because of their expertise or just as compensation to
them not being full time workers. When you are looking to cut down costs of your company, you could stop
hiring contractors. This could save quite a lot of your expenses.
How do you propose to motivate the employees who see their
colleagues being laid off?
Often it has been observed when a company starts downsizing its employees, the other employees start
getting insecure as they always have a feeling that the next number could be theirs and hence they at time
also start losing motivation in working and also might exploring other job opportunities. It is a big concern for
the employers to keep their other employees motivated while they are downsizing.
One of the major ways that you could help in keeping up the spirits of your employees is by giving them
recognition for their work alongside praising them for their achievement. The other small steps that you could
adopt to keep them motivated are:
- Discussion with employees - creates small groups of employees and explain them the situation
personally.
- Empathy - be candid in understanding the people who were let go and also for the added responsibilities
on the current staff. Discuss with the current staff on their thought process regarding the downsizing and try
to understand them. This will be a good way that they will be able to vent out their emotions and will help in
reducing the rumours.
- Courteous – be courteous enough towards your employees, and thank them that they are with the
company in difficult times and the company appreciates their understanding. This will give a feeling to the
employees that they are also important to the company.
Suppose you are laying off an employee. Make a check list you would
require for them.
You need to be very careful while laying off an employee as you have to be ready with your counter points
that an employee may come up with after you inform him that he is being laid off from his job. Below
mentioned are some points that you can keep in mind while you are planning to lay off an employee.
- Be aware of the rules and regulation mentioned in the company’s model standing orders regarding the
termination of an employee, grievance procedures as well as the disciplinary actions or if any bond has been
signed between the company and the employee.
- Keep all the performance appraisal reports up to date of the employee, so that if he questions you where
did he lack in his performance, you have all the reports ready in your hand to answer and clarify his doubts
on the same.
- You should be able to explain the reason of the lay off to the employee effectively. Hence you should be
ready with all the relevant information.
- Notify the employee with all the benefits and the insurance rules and also about his final payment in
advance.
- Try to avoid conversations on why was he laid off and why not the other employee.
- If the employee is worth, you could refer him to some placement companies so that you could help him in
getting another job.
While you are terminating an employee, you need to be extremely careful. When you terminate an employee
you must follow the below mentioned steps:
a. Notice Period: Notice period is nothing but how much in advance should you inform the employee about
his termination. The Notice period is also at time dependent upon the employment period as well. But in most
of the cases the notice period is fixed to one month, so that the employee has enough time to find another
job for himself.
b. Leave entitlements: if there are any balance leaves in the employees account he can either avail them
during the notice period or he could en-cash them as per his will.
c. Severance Pay: Severance pay is usually paid if the position is being eliminated from the company. Also
the laws for the severance pay should be mentioned in the employment contract.
d. Final Pay: You should pay the dues of the employee by the last day of his employment or maximum within
4 weeks of time.
What is a grievance?
Grievance is formal complaint which demonstrates any kind of dissatisfaction in an employee, arising out of
the factors which are related to his job.
- A written document
- E-mail.
The organizations which allow the employees to see the top level executives directly with their grievances
are called to have “Open Door Policy”. Many of the lower level employees do not find it very comfortable to
approach the top executives directly.
The organizations in which the employee is required to talk to his immediate senior about his grievances,
who either offers a solution or escalates the grievance are called to have “Step Ladder Policy” for grievance
handling.
Grievance handling process gives the aggrieved employees an opportunity to communicate their feelings and
problems to the concerned people. These people can then address the grievances as per the policies. A
good grievance handling system brings following benefits to the organization:
a.) It develops the trust of employees in the organization, its motives and policies
b.) It helps in addressing the employee’s problems before they become too big
c.) It helps in improving the over all work conditions and atmosphere
d.) It helps in developing a committed work force and improving the productivity
e.) It helps in identifying the areas of improvement and taking the required actions
a.) Salaries
b.) Overtime
c.) Leave policies
d.) Lack of growth in career
e.) Conflicts in the roles
f.) Unmatched skills and responsibilities
g.) Disciplinary action
a.) Employees
b.) Management
c.) Work
Following are the effects of grievances on each of the above mentioned parties:
a. Employees
i.) Frustration
ii.) Demotivation
iii.) Aloofness
iv.) Low productivity
b.) Management
c.) Work
i.) Solve the problems when they are really small rather than letting them grow big and becoming insolvable
ii.) Improve the overall work conditions
iii.) Develop a happy work force
iv.) Keep the concentration on productivity
v.) Tackle human problems like – absenteeism, demotivation etc.
It is extremely important to handle the grievances in a timely manner. Justice delayed means justice denied.
When the HR Department makes use of the Internet and related technologies to support their activities, the
process becomes e – HRM. Fully developed e – HRM can be responsible for the data gathering tools,
analysis competencies and decision support sources for HR Professionals to hire, pay, promote, terminate,
assign, develop, appraise and reward employees in ways that completely engages them in working on their
own consequences, maximise the involvement of each employee, and sustenance in implementing the
organization’s stratagem.
With the internet age taking over a lot of things, the e – HRM area is also quickly picking up its implications,
especially used in recruitments for hiring people. Below mentioned points are the implications of e – HRM
- Employees in geographically dispersed locations can work together in virtual teams using video, e mail and
the internet.
- Posting jobs online and receiving the applications as well online.
- Online simulations, including test, videos and e – mail can measure candidates’ abilities to deal with real life
business challenges.
- Online training can bring employees anywhere and everywhere.
- Employees can review salary and bonus details and seek information about and enrol in benefit plans.
Today e – recruitment is widely used in most of the companies. Statistics show almost 70% of large firms are
bringing e – recruitment into practice. As it is commonly quoted every coin has two sides, so does the e-
recruitment also has, let’s have a look into the benefits and dysfunctionalities of e – recruitment.
E – Recruitment offers several facilities like, applying online, having a wide reach of prospective employees,
barring the national barriers are a few of the benefits that e – recruitment portray.
The unintended consequences of e – recruitment are, replacing the traditional recruiters with computerised
systems and hence making the entire process impersonal. It is not that flexible for the applicants and hence
leaves a negative impact on the retention rates of the employees. Also today as well a lot of people cannot
afford to have a computer or for that matter any electronic device on which they can access internet and
hence they lose the opportunity to apply for job and the company might lose a prospective good employee.
There could be also chances of the personal information being misused by hackers.
While using the e – recruitment practices, a recruiter should keep in mind the below mentioned precautions:
- Aligning the e – recruitment needs with the organizations strategic goals, i.e. the recruiter must be able to
identify if the individual and his skills will help in accomplishing the company’s strategic goals.
- If your organization carries a good repute in the market then it will be easier for you to recruit through e –
recruitments, as applicants will not be sceptical in applying in your company.
- E – Recruitment should not be the only source of recruitments as you will limit your options for people who
lack access to the internet. Hence you should use other options like referrals, campus hiring, head hunting as
well to recruit.
- E – Recruiting tends to attract more of job hoppers, which in turn the organization will face troubles in
retaining the employees.
- The recruitment website should be designed in a way that it is easy to use and that the applicants can apply
easily.
- Online screening systems should also be developed based on job analysis and ensure that the inferences
made from the system are reliable and valid.
- Adequate information should be mentioned on the website not only about the company but also about the
job opportunity.
- Organizations should promote values that can help in attracting employees rather than selecting those who
fir the traditional culture. By this the company will be able to have people with different thinking and may help
the company in achieving success.
- Take feedback from the employees on the website and if any changes can be made in the website.
- See to it that your company’s website should have no legal hassles around it.
- The last and the most important thing that your website should have is that it should be secure enough to
protect the useful information of the applicants.
What is e – selection?
E – Selection includes activities like scheduling interviews, web based testing, face to face interviews and job
offering.
- Achieving cost reduction – This is the first and foremost objective of e – selection. There are a number of
ways in which e – selection can cut the costs. For example, a lesser amount of rates involved in between the
selection process, administrative costs are abridged, and cost of sourcing candidates into employment
process becomes less.
- Maximum utilisation of human capital – This is attained through high retention rates, increased
percentage of candidates who meet employment requirements and improved productivity after the new hires.
• Sustainability – It is the capability of the organization to maintain the e – enabled system and gradually
advances into the system to satiate the changing requirements. Sustainability makes sure that the business
endures to acquire profits from the e – enabled system.
Discuss about e – performance and motivation, how are they linked?
The use of technology in performance management tends to increase productivity, enhance competitiveness
and motivate employees. This is possible if technology facilitates measuring an individual’s performance via
computer monitoring activities or technology becomes a tool to facilitate the process of writing reviews or
generating performance feedback.
There are several ways in which technology can be applied in performance management, like:
- Monotonous or low discretion jobs can be subject to computerised performance monitoring system that
assists in generating performance data.
- Software’s are available that help generate appraisal forms and their complementary descriptions as well.
- Performance management system can be cohesive with an overall enterprise resource planning software
system. This approach helps the HR Professionals to ascertain high performers, spot skills and competency
gaps and to evaluate the pay relative compared to performance.
- Along with this information available to the HR Professionals, it helps them plan for training, coaching and
education of the employees.
- Firm intranets and internet may also help performance management system. Some of these packages are
relatively inexpensive and easy to use.
- Elimination of paperwork
- Simplification of logistics for evaluators, workers and administrators
- The appraisal package facilitates the automation of the tedious parts of evaluation. This enables the
managers to focus on contents of the evaluation process rather than on the forms.
-There are a lot of appraisal softwares that contain psychometric features.
- The performance appraisal is person centric and however advanced the machines are they cannot
substitute one on one interaction.
- Face to face interaction is imperative for objective assessment of anybody’s performance.
- E – Performance Management and Motivation are linked in such a way that, the e – performance system is
transparent and unbiased in its evaluation system. With this feature employees are evaluated based solely
on their performance and not any reference. Hence it will motivate the employees to perform effectively, be it
anyone.
E – Learning refers to the use of internet or an organisational intranet to conduct training on – line. With the
company’s expanding and the training needs is also increasing day by day, hence with the advent of e –
learning huge number of employees can be trained effectively.
E – Learning is not replacing the traditional methods; in fact if e – learning is blended with traditional learning
methods then it becomes all the more effective, for example: using e – learning before classroom training is
an example of blended training.
Requisites of e – learning:
- The top management should be supportive enough and there should be proper funding to develop and
implement e – learning.
- Managers and HR Professionals need to be also trained on the usage of the e – learning system.
- If you compare the traditional training methods to e – learning, the traditional training methods are not
equipped enough to meet the organisational training needs.
- Planning: this allows better planning and analysis of the market and the people who are working together
in the firm.
- Directing: this allows managers to provide a directive path to the people to work.
- Controlling: this allows better control of the work of the people who are working in the firm to get the
desired output.
- Managers at this level perform the functions in operative management such as: Procurement, Development,
Compensation, Integration, Maintenance and Separation.
There are three approaches that can be used in personnel management to reach the higher goal and to earn
the profit for the firm in which you are working. The approaches are as follows:
- Systems approach is the approach that is related to the organization as whole. This is dependent on the
organization and its traits. This allows the managers to see the larger picture of the organizational system to
fulfill the need of individuals and managers.
- Scientific Management approach introduces cumulative learning effect of the past and post the options to
bring the change according to the modern ways by devising the techniques and management. This is also
known as economic model.
- Paternalistic approach introduces the fact that all the personnel in a firm is like a family. It allows all the
personnel to share the same standard care and benefits that is being provided to every other personnel.
What is the function or role of procurement personnel?
Procurement personnel hire the people and move them to new jobs, or motivate them to perform at high level
to increase the profits for the organization. The personnel are responsible to select the right people with right
skills to bring the positives for the organization. The growth of the company doesn’t get derived from the use
of modern technology but it is the ability of the young generation that is hired for the company to make the
difference. Personnel attract people with high skills and reliable employees who can work under pressure
and bring out the best in themselves and for the company.
Employment policies and practices are designed to protect the rights of the employee, and managing the
company. There are different types of policies and practices:
1. To select the employee that is best suitable for the company having all the qualifications.
2. Responsibility of an organization to provide the validity of the job and the selection procedure need to be
transparent to all other employees.
3. There should be responsibility to handle the alternative methods of selection with less adverse impact.
4. Employees should be treated with dignity and respect. There is a responsibility to handle the employment
status and a structure needs to be maintained to follow all the policies and due practices.
Performance appraisals are the part of an organization. It is a process of assessing and evaluating each
employee in their domain and views their overall performance chart according to their duties and decides to
increase their wages. This is very important for the employees because this increases their standard and
keeps them motivated to do many useful things for the company. It is also important from the employer’s
point of view as they can be aware of their performance and the contribution they are making to the
company’s growth. Performance appraisal allows the employees to raise their standard more and compete to
bring the best out of themselves.
What is the objective of employee performance rating system?
The objective of employee performance rating system is to find out by the employer about their employee
working and contribution to the company. It is a good way to allow the managers to know the ways to
improve the overall performance of employees. The rating system involves the conducting of an interview
with the employee individually and discusses the work with them on a friendly basis. The questions can be
included in a familiar way like where are your weaknesses lies; what is required to be improved; etc. To
interact with all the performance rating system is a must as it allows the rating system to have their own
objectives.
Performance rating systems have different objectives in a generalized way. The main purpose of providing
this rating system is to improve the effectiveness and profitability of the company. This also increases the
efficiency of the bureaucracy. This system allows the focus to be shifted from overall methodology to the
individual employees within the company. This way the company as well as the employees gets benefited by
it. Employees have their own recognition and the problems between the two people can be sorted out using
this system. This system allows some Review goals to be presents and new goals can be set to increase
their ability and relationship between the employees.
Communication is an important and integral part to have the success and failure of an organization. The
people who are lacking good communication skills are classified as under achievers and require training to
achieve the best results. It is been seen from an example where in Texas research organization studied
16,000 executives to find out that the people who cared about the profits and the others got the best result for
an organization. Those who were average concentrated on the production for the organization and those who
scored the lowest cared about their security. Communication allowed the high achievers to close the gap
between workers and the superiors.
1. “Submission to the conduct is either implicitly or explicitly made a term or condition of employment”;
3. “The conduct has the purpose or effect of unreasonably interfering with an individual’s work performance
or creating an intimidating, hostile, or offensive working environment”.
The interview process needs to be such that it decides the right way to incorporate the right people who can
contribute to the company’s success. The interview process requires finding out good employees by
screening them out at first step. There are lots of ways in which the hiring can be done and this involves
always some steps. The steps that can be taken are as follows:
- Face to face interview: this allow viewing the candidate and finding out what exactly he thinks about the
company and the people around him.
- Telephonic interview: This is very cost and time efficient as it saves time of senior members and the
person who is going to come for the interview.
- Interactive TV (IITV): This is very cost and time efficient that saves time in terms of traveling and allow
easy to use settings to setup and interview site to view each other.
What are the steps taken to check the references a person is providing?
- When a person provides any reference then it should be checked immediately with supervisors and
educational institutes. This will reveal the actual identity of the person and it can save time over a candidate
that does not deserve and has past that can ruin the company.
- Check the references if it is made prior to the candidate’s interview. This will reduce the risk of expenses
that is bear by the candidate or the company.
- Take permission before checking any reference from the candidate in advance and advice them on the
same.
- If hiring is being done for a person who is there to check the references then proper information has to be
kept regarding him as well.
- Never contact the current employer of the candidate as it will ruin his chances of stay in the company and
might bring down his offer letter from the company.
- Employee review is a very useful communication tool in between the management and the employees as it
remove a communication barrier and provide freedom to the employee to think and channelize their ideas
regarding any issues faced by them in the company.
- The review provides a way to manage both management and employees discussion related to the issues
mentioned in the review.
- This is a healthy process as it keeps the employer upto date regarding the employees well being and their
needs. This allows employees to be more open minded and help themselves and the organization to grow by
giving good points that need to be changed in an organization.
The procedure that needs to be followed to conduct and employee review includes:
1. Give a form to fill that asks the employees to fix a meeting for the discussion on the topics they are having
issues with.
2. Employees need to be well prepared for the meeting and the topics they are having problems in.
3. If there any review taken place then both parties should have a copy of that in advance.
4. Managers and employees should sit together and discuss each topic and try to answer everything.
5. Manager then should take more action after seeing the truthfulness of the issues.
- Points of agreement
- Points of disagreement
- Plans for resolution of disagreements
- Plan of action for attainment of mutual goals and outcomes
- HRM (Human resource management) is different from PM (Personnel management) in scope and
orientation.
- HRM sees the people as an important asset for the organization that will benefit the organization to grow
and the society as overall. Whereas, PM treats the workers as labour and it describes that they are labour to
the organization
- PM department is not treated with respect, whereas there is a respect giving in HRM department and
everyone there is treated as equal.
- PM is not considered as a part of strategic management and always been treated as an activity to hire new
employees and maintain records of them. Whereas, HRM treats each individual important and it deals with
strategic marketing.
- PM relates itself to labour management, whereas HRM deals with customer management and believes in
providing the best services to an organization.
- Organizational Objectives: These types of objectives are recognized and bring the organizational aspects
to a firm. It brings effective changes that assist the organization to deal with the primary objectives of theirs.
- Functional objectives: This type defines the maintenance of the department’s contribution to an
appropriate level after seeing the organizational needs.
- Personal objectives: These types assist the employees to reach their personal goals while making sure
the organization reaches new heights. The objectives enhance the individual’s contribution to the
organization.
Outsourcing is the process by which employees transfer the routine work to other organization that is
specialized in this field. This is an efficient way to get the work done as it saves time and money. The
outsourcing activities include hiring of the new employees, training of the employees and developing the
business. There are other fields as well that requires the outsourcing of the work. The outsourcing includes
the downsizing and globalization of an organization. The outsourcing of personnel manager’s activities
provides greater advantage to the growth of the organization. According to the latest trends 72% of the
companies in India are outsourcing their personnel activities.
A policy is a simple plan of action that is taken to complete an objective. The personnel policies require the
following information:
There are two types of categories for job evaluation. These categories include several methods that are used
to evaluate jobs. The two categories are as follows:
Non-analytical method category includes two methods that is used to determine only the relative ranking
but not the detailed job factors. The other two methods involved in this are:
- Ranking method: this is the simplest method that is used for evaluation and assessing the job on the basis
of the title or its content. In this each job is compared with other and then placed according to that.
- Job-grading method: this is a type of ranking method but it deals with the job-classification method and
doesn’t call for detailed or quantitative analysis of job factors.
Analytical method category: This is the category that includes some methods for job evaluations. The
methods are as follows:
- Point ranking method: This allows the system to start by selecting job factors and assignments of point
are done to each degree. Different factors are defined for different jobs.
The job evaluation process starts by assigning the jobs and the objectives for evaluation and it ends by
establishing wage and salary differentials. The components involved in job evaluation process are as follows:
- Objectives of job evaluation: the objective is to establish a wage and salary differentials.
- Job analysis: this requires a bit of research and analysis to be done on the methods to be used for job
evaluation.
- Job specification: these are the requirements that are required when doing the job evaluation.
- Job description: this is required to allow easy describing of the job and better understand it according to
the requirements.
- Job evaluation Programme: this provides proper training for the job that is being under construction.
- Wage summary: includes the summary of the overall objective by selecting the key duties and the jobs that
define all the levels of jobs.
- Employee classification: this is the end result that has to be achieved to satisfy the need of the employee
and evaluate the job of his to his satisfaction.
The employee in an organization is entitled to have several benefits both financial and non-financial. The
remuneration consists of several components such as:
Wages represents the hourly rate of pay and salary is the monthly rate of pay. These are bound to include
the annual increments and these differ from employee to employee depending on the nature of the job and
merit.
Incentives: These are also termed as payments by results and it is paid in addition to wages and salaries.
Fringe Benefits: this includes the benefits obtained by the employee like provident fund, granularity, medical
care, hospitalization, etc.
Perquisites: this includes the executives like company car or membership of the company.
Industrial relations are the relations between employees, employers, government and trade unions within the
organizational structure.
The industrial relations system is a system of relationship between all the parties involved. A sound IR
system will create an environment conducive for organizational growth and labour welfare.
i.) Employers – They are the ones who possess the rights to hire the employees and remove them. They
also possess the rights to relocate, close or merge the business. They can opt for technological changes as
and when they see it in the interest of business.
ii.) Employees – They are actually the ones who keep the business moving. They possess the rights to voice
their opinions and feelings while striving for betterment. They usually form the unions to negotiate with the
employers.
iii.) Government – Government is the one who influences the IR system with laws, rules, agreements,
awards of court etc. They also include third parties & labour and tribunal courts to manage the IR system.
- To ensure that the workers are not over powered and used by the employer.
- To ensure that the workers do not blackmail the employers with unnecessary demand leading to a loss of
production
- To ensure that the economy keeps growing
- To ensure that even if a problem arises, it is solved amicably.
- Continuous production
- Lesser number of disputes between employees and employers like strikes, lock outs, grievances etc.
- Higher level of motivation in the employees as they consider themselves to be a part of the organization
- Optimum utilization of resources leading to higher profits for employers and employees
- To avoid the human conflicts which can harm the business, the employees and the economic growth of the
country.
- To reduce the number of industrial disputes like strikes, lock outs etc.
The three factors that Dunlop’s theory advices to consider while analysing management-labour relationship
are:
- Rules obtained from the interactions that govern the employment relationship
Explain the unitary perspective of IR from employer point of view.
The unitary approach believes that the employees and employers share the same objectives, interests and
purposes. They work hand-in-hand for the betterment of the organizations. However, this system expects
loyalty from the employees.
- The staffing policies should be exercised to unify the efforts. They should motivate the employees.
- The objectives of the organization should be discussed with the employees.
- A reward system should exist to secure loyalty and commitment from the employees
- Line managers should take the responsibility of their team.
- Staff-management conflicts arise form lack of information and inadequate presentation of management
policies.
- Personal objectives of the employees should be integrated with the overall objectives of the organization.
- The purpose of a union is to act as a means of better communication between all the parties.
- All the parties should focus on good relationships and good working terms and conditions
- Employees should have a participation in workplace decisions. This promotes teamwork, creativity, problem
solving abilities.
- Employees should have a feeling that the skills of their managers support them in their work.
What is the pluralistic perspective of IR system? What are the
implications of this approach?
- Pluralism perspective views the organization being made up of two groups – Management and trade
unions. Both of them are considered strong.
- Conflict is not viewed as a bad thing and is dealt with through collective bargaining
- The focus of Marxist perspective of IR system is on fundamental division of interest between capital and
labour.
- It assumes that the conflict at work place is a reflection of conflict in the society.
- Trade unions are deemed as a natural response from workers to protect themselves against exploitation.
i.) Distributive bargaining – Also termed as conjunctive bargaining, this form of bargaining aims at re-
distribution of benefits between the management and the group of workers. In this form of bargaining, one
group gains while the other looses something.
ii.) Integrative bargaining – Also termed as co-operative bargaining, this form of bargaining is for overall
improvement in the working of the organization. No party looses here, so, the level of co-operation is more.
iii.) Attitudinal restructuring – This type of bargaining mainly aims at developing a change in the attitude of
the management and the employees. The purpose is to reduce the bitterness and develop a congenial
atmosphere.
iv.) Intra-organizational bargaining – This kind of bargaining aims at achieving the consensus within the
trade union and management group.
- It is a formal process in which employers and formal trade unions participate for discussions.
- The process works on the basis of mutual trust and understanding between the two parties.
- It is a complementary process where each party has something to offer to each other.
- It is a constructive ongoing process.
- Preparatory – In this stage the negotiation team is formed which comprises of the members of both the
teams. Both the sides need to take a stock of their situation to find the matters which they need to take up
discussion, their stand on it.
- Discussion – In this stage the ground rules governing the negotiation process are set with the agreement
of both the parties.
- Proposal – The issue for which the meeting is called is defined and the possible solutions are put forth.
- Bargaining – This is the phase where actual bargaining takes place and its nitty gritties are decided.
- Settlement – After a consensus is reached, this stage consists of effective joint implementation of the
agreement.
Explain CBA.
Procedural agreements – They usually deal with the relationship between employees and employers to
resolve individual and group issues. These are usually filed in the company’s rule book.
Substantive agreements – This kind of an agreement deals with specific issues like basic pay, leave policy,
bonus payment etc.
- It’s easier for management to deal with group issues rather than individual issues
- It leads to an increase in the level of trust among employees and employers benefiting the overall business
- Reduces absenteeism and labour turnover which increase productivity and reduces the cost and wastage
- It helps in settling the issues at an initial level before they turn into disputes
Why are trade unions formed? What services do they provide to the
members?
- Trade unions are formed to protect their members from the exploitation by their employers.
- They negotiate with the management the issues affecting the employees working in the organization.
- They intervene in the decisions which affect the workers directly like transfer, lay off etc.
- They educate workers about their basic rights and train them with professional skills.
- They provide legal assistance to the worker when needed
- They offer financial loans on mortgages to their members
- They offer financial help to members when they are invalid or unemployed.
The functions performed by trade unions can be classified into two groups:
Militant functions
These activities include strike, lock outs, gherao etc which means putting up a fight with the management.
Hence, they are called militant functions. They are carried out for following purposes:
Fraternal functions
These functions are carried out by the trade unions for the welfare of their employees which includes:
The major factors which motivate the employees to join trade union are:
Industrial dispute can be defined as conflict between management and workers regarding payments or
conditions related to work.
What is strike? What are its various types? What are its major causes?
When workers collectively stop to work in an industry with an intention to make the management agree to
their demands, they are said to be on strike.
Explain Lockouts.
Lock out is a management’s tool in which an employer prevents the workers from working. This is a pressure
tactic used by the management.
i.) Personnel policies acceptable to all – These should be formulated in conjunction with representatives of
employees, clearly stated and uniformly implemented across the organization.
ii.) Will to sincerely implement the agreements reached together by the management and unions
vii.) Government’s role as a peacemaker when the employees and employers are not able to solve the issues
themselves.
HR - Industrial Law
1.What is industrial relations system?
2. Name the various parties involved in IR system?
3. What are the main issues covered IR system?
4. Why is it important to have an IR system in place?
5. What are the benefits of having an industrial relations system in place?
6. What are the main objectives of industrial relations system?
7. Explain Dunlop's theory of industrial labor relations.
8. Name the three factors Dunlop's theory advice to consider while conducting and analysis of
management-labor relationship.
9. Explain the unitary perspective of IR from employer point of view.
10. Explain the unitary perspective of IR from employee point of view.
11. What is the pluralistic perspective of IR system? What are the implications of this approach?
12. What is marxist perspective of IR system?
13. Explain collective bargaining. What are the different types of activities which comprise collective
bargaining.
14. What are the characteristic features of collective bargaining?
15. List down the major steps of collective bargaining.
16. Explain CBA.
17. What is the importance of collective bargaining to employees and employers.
18. Name the three levels at which collective bargaining works?
19. Why are trade unions formed? What services do they provide to the members?
20. Classify and explain the funtions performed by trade unions
21. Which major factors motivate employees to join trade union?
22. Name some central trade union organizations existing in India.
23. Classify Indian labor market.
24. What do you mean by Industrial dispute?
25. What are the main causes of Industrial dispute.
26. What is strike? What are its various types? What are its major causes?
27. Explain Lockouts.
28. What measures do you propose to develop congenial Industrial Relations?
29. What are the qualifications required to be a conciliation officer? Explain the process of
appointment of conciliation officer as per Industrial Disputes Act, 1947?
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