APPRAISAL PERFORMANCE APPRAISAL
Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employ employee. ee. The focus focus of the perfor performanc mancee apprai appraisal sal is measur measuring ing and impro improvin ving g the actual actual perfor performanc mancee of the employee and also the future potential of the employee. Its aim is to measure what an employee does. Accord According ing to Flippo, Flippo, a promin prominent ent person personali ality ty in the field field of Human Human resour resources, ces, “perform “performance ance apprais appraisal al is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning plannin g for his future.
It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management’s interest in the progress of the employees. OBJECTIVES OF Performance appraisal: • • • •
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To review the performance of the employees over a given period of o f time. To judge the gap between be tween the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior – subordinates and management – employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to b e performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees.
Process of Performance Appraisal •
ESTABL ESTABLISH ISHING ING PERFOR PERFORMAN MANCE CE STAND STANDARD ARDS: S: The first first step step in the proces processs of perfor performanc mancee appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.
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COMM COMMUN UNIC ICA ATING TING THE THE STAN STANDA DARD RDS S :Once :Once set, set, it is the respo respons nsib ibili ility ty of the the manag manageme ement nt to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.
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MEASUR MEASURING ING THE ACTUAL PERFO PERFORMA RMANCE NCE:: The most most diffic difficult ult part part of the Perfor Performan mance ce apprais appraisal al process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.
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COMP COMPARING ARING THE ACTUAL WITH THE DESIRE DESIRED D PERFOR PERFORMAN MANCE: CE: The actual actual perfor performanc mancee is comp compare ared d with with the the desir desired ed or the the stan standar dard d perfo perform rman ance. ce. The The comp compar aris ison on tell tellss the devia deviati tion onss in the the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance.
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DISCUSSING RESULTS: The result of the appraisal is communicated and discussed with the employees on one-to-one one-to-one basis. The focus of this discussion discussion is on communicati communication on and listening. listening. The results, results, the problems problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.
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DECISION MAKING: The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.
Pre-requisites for Effective & Successful Performance Appraisa
The essentials of an effective performance system are as follows: Documentation – means continuous noting and a nd documenting the performance. It also helps h elps the evaluators to • give a proof and the basis of their ratings. Standards / Goals – the standards set should be clear, easy to understand, achievable, motivating, time bound • and measurable. Practical Practical and simple simple format format - The appraisal appraisal format should be simple, simple, clear, fair and objective. objective. Long and • complicated formats are time consuming, difficult to understand, and do n ot elicit much useful information. Evaluation technique – An appropriate evaluation tec hnique should be selected; the appraisal system should •
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Communication also plays an important role in the review or feedback meeting. Open communication system motivates the employees to actively participate in the appraisal process. Feedback Feedback – The purpose purpose of the feedback should be development developmental al rather rather than judgmental. judgmental. To maintain maintain its utility, timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees’ future performance. Personal Bias – Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. Therefore, the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively. effectively.
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Challenges Of Performance Appraisal
In order to make a performance appraisal system effective and successful, an organization comes across various challenges and problems. The main challenges involved in the performance appraisal process are:
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Determining the evaluation criteria: Identification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms
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Create a rating instrument: The purpose of the Performance appraisal process is to judge the performance of the employees rather than the employee. The focus of the system should be on the development of the employees of the organization.
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Lack of competence: Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They should have the experience and the necessary nec essary training to carry out the appraisal process objectively.
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Errors in rating and evaluation: Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating an d rating the performance of the employees
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Resistance: The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her.
Purpose of Performance Appraisal
Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-appraisal and potential appraisal also form a part of the performance appraisal processes. Typically, ypically, Performance Appraisal is aimed at:
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Provide information to assist in the HR decisions like promotions, transfers etc. Provide clarity of the expectations and responsibilities of the functions to b e performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees. Helps to strengthen the relationship and communication between superior – subordinates and management – employees. The most significant reasons of using Performance appraisal are: Making payroll and compensation decisions – 80% Training and development needs – 71% Identifying the gaps in desired and actual performance and its cause – 76% Deciding future goals and course of action – 42% Promotions, demotions and transfers – 49% Other purposes – 6% (including job analysis an alysis and providing superior support, assistance and counseling).
The Balanced Scorecard To evaluate the organizational and employee performance in Performance appraisal management processes, the conventional approach measures the performance only on a few parameters like the action processes, results achieved or the financial measures etc. The Balanced scorecard –an approach given by Kaplan and Norton provides a framework of various measures to ensure the complete and balanced view of the performance of the employees. Balanced scorecard focuses on the th e measures that drive performance.
The balanced scorecard provides a list of measures that balance the organizations internal and process measures with results, achievements and financial measures. The two basic features of the balanced scorecard are: A balanced set of measures based on. the four perspectives of balanc ed scorecard • Linking the measures to Employee Performance • The four Perspectives recommended by Kaplan and Norton for the managers to collect information are: The financial measures – The financial measures include the results like profits, increase in the market share, • return on investments and other economic measures as a result of the actions taken. The customers customers’’ measures measures - These measures help to get on customer customer satisfaction, satisfaction, the customer’ customer’ss perspective perspective • about the organisation, customer loyalty, acquiring new customers. The data can be collected from the freq frequen uency cy and and numbe numberr of cust custom omer er compl complai aint nts, s, the the time time take taken n to deli deliver ver the the prod produc ucts ts and and serv servic ices es,, improvement in quality etc. The internal business measures – These are the measures related to the organization’s organization’s internal processes which • help to achieve the customer satisfaction. It includes the infrastructure, the long term and short term goals and objectives, organisational processes and procedures, systems and the human resources. The innovation and learning perspective. The innovation and learning measures cover the organisation’s • ability to learn, innovate and improve. They can be judged by employee skills matrix, key competencies,
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Gives the complete picture of the employee as well as the organisational performance. It guides users in determining the critical success factors and performance indicators. Strategic review or analysis of the organisational capabilities and performance. Focusing the whole organisation on the few key things needed to create breakthrough performance. Integrating and directing the performance and efforts from the lowest levels in the organisation to achieve excellent overall performance.
Techniques Of Performance Appraisal
1. 360 DEGR DEGREE EE PERF PERFORM ORMANC ANCE E APPRAI APPRAISAL SALS S
360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the
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provide valuable insights and information or feedback regarding the “on-the-job” performance of the employee. 360 degree appraisal has four integral components: 1. Self appraisal 2. Superior’s appraisal 3. Subordinate’s appraisal 4. Peer appraisal. •
Self appraisal gives a chance to the employee to look at his/her strengths and w eaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree appraisal where whe re the employees’ responsibilities and actual performance is rated by the superior.
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Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities abilities to work in a team, co-operation co- operation and sensitivity towards others.
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Self assessment is an indispensable part of 360 degree app raisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.
360 degree appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep kee p a track of the changes others’ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance app raisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.
2. MANA MANAGEM GEMEN ENT T BY OB OBJE JECT CTIVE IVES S The concept of ‘Management ‘Manage ment by Objectives’ (MBO) was first given by Peter Drucker in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. The essence of MBO is participative goal setting, ch oosing course of actions and decision dec ision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. Ideally, Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.
UNIQUE FEATURES FEATURES AND ADVANTAGES ADVANTAGES OF MBO M BO
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Clarity of goals – With MBO, came the concept of SMART SMART goals i.e. goals that are: Specific Measurable Achievable Realistic, and Time bound. The goals thus set are clear, motivating and there is a linkage between organizational goals and performance targets of the employees. The focus is on future rather than on past. Goals and standards are set for the performance for the future with periodic reviews and feedback. Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment. Better communication and Coordination – Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period.
3. Asse Assess ssme ment nt Cent Centrres Assessment centre refers to a method to objectively observe and assess the people in action by experts expe rts or HR professionals with the help h elp of various assessment tools and instruments. Assessment Assessment centers simulate the employee’s on-the-job environment and facilitate the assessment of their on-the-job performance.
An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies and on-the-job behaviour and potential to take higher responsibilities in the future. Generally, Generally, employees are given an assignment similar to the job they would be expe cted to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics. An assessment centre for Performance appraisal of an employee typically includes:
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The final results is based on the pass/fail criteria All the activities are carried out to fill the targeted job. Each session lasts from 1 to 5 days. The results are based on the assessment a ssessment of the assessors with less emphasis on self-assessment Immediate review or feedbacks are not provided to the employees.
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An organization’s organization’s human resources can be a vital competitive advantage and assessment centre helps in getting the right people in right places. The major competencies that are judged in assessment a ssessment centres are interpersonal skills, intellectual capability, capability, planning and a nd organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees. TQM and Performance Appraisal
According to Sashkin and a nd Kiser, “Total “Total Quality Management (TQM) may be defined as creating an organisational culture committed to the continuous improvement of skills, teamwork, processes, product and service quality and customer satisfaction.” TQM refers to the continuous improvement in the quality of work of all employees with the focus on satisfaction of the customers. Elements of TQM are: Meeting customers requirements, • Continuous improvement • Empowerment of employees. • Both TQM and Performance appraisal/ evaluation are focused on increasing the productivity of the organisation through continuous improvement. They both facilitate the systematic management of all the processes, actions and practices at all levels in the organisation. Some of the benefits of both the performance appraisal and TQM are: Improvement in the performance of the employees • Brings quality consciousness • Better utilization of resources • Commitment to higher quality. quality. •
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Performance appraisal can sometimes, encourage an employee to focus on his personal goals (like his promotion) rather than the organisational goals. Therefore, the suitable practice should be chosen carefully by the top management and the leaders of the organisation.
Performance Appraisal Process Change Management
The performance appraisal process provides an opportunity for introducing organizational change. It facilitates the process of change in the organizational culture. The interactive sessions between the management and the employees, the mutual goal setting and the efforts towards the career development of the employees help the organization to become a learning organization. Conducting performance appraisals on a regular basis helps it to become be come an ongoing part of everyday e veryday practice and helps employees to take the responsibility of their work and boosts their professional developm ent. Various studies in the field of human resources have already proved that performance appraisal proce ss can affect the individual performance (in a negative or positive way), thus having an impact on the collective performance. Performance appraisal: An opportunity for an organisational culture shift • Performance appraisal process focuses on the goal setting approach throughout the organisation. • Performance appraisal helps the clarity and understanding of the roles and responsibilities of the • employees. The performance appraisal processes have the potential positive effects on recruitment • It increases organisational effectiveness i.e. what to do and how to do through a formal and • structured approach. Some evidence of the beneficial be neficial effects of team rewards • Therefore, performance appraisal is also an important link in the process of change in organization culture.
INDUSTRIAL INDUSTRI AL RELATIONS. RELATIONS. Industrial relations has become one of the most delicate and complex problems of modern industrial
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Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated. The term industrial relations has a broad as well as a narrow outlook. Originally, industrial industrial relations was broadly defined to include the relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human resource management, employee relations, and union-manage ment (or labor) relations. Now its meaning has become more specific and restricted. Accordingly, Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers. The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers’ participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises. Industrial Relation System
An industrial relations system consists of the whole gamut of relationships between employees and employees and employers which are managed by the means of conflict and cooperation. coop eration. A sound industrial relations system is one in which relationships between management and employees (and their representatives) on the one hand, and between them and the State on the other, are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation, productivity and development of the employee and generates employee loyalty and mutual trust. Actors in the IR system:
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The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marke ting, price fixation and disposition of profits among others. The scope or industrial relations are quite vast. The main issues involved here include the following: Collective bargaining • Machinery for settlement of industrial disputes • Standing orders • Workers participation in management • Unfair labor practices •
Importance of Industrial Relations:
The healthy healthy indust industria riall relati relations ons are key to the progre progress ss and succes success. s. Their Their signif significa icance nce may be discussed as under – Uninterrupted production – The most important b enefit of industrial relations is that this ensures • continuity of production. This means, continuous employment for all from manager to workers. The reso resour urces ces are are full fully y util utiliz ized ed,, resul resulti ting ng in the the maxi maximu mum m possi possible ble produ product ctio ion. n. There There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for
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•
•
thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. satisfied. It naturally affects affects production production because mighty mighty co-operative co-operative efforts alone can produce great results. Mental Mental Revolution Revolution – The main object of industrial industrial relation relation is a complete complete mental mental revolution revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in con sonance with a spirit of true democracy. democracy. Both should think th emselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employer’s authority. It will naturally have impact on production because they recognize the interest of each other. Reduced Wastage Wastage – Good industrial industrial relations are maintained maintained on the basis of cooperation cooperation and recognition of each other. other. It will help increase production. Wastages of man, material and machin es are reduced to the minimum and thus national interest is protected.
Thus, it is evident that good industrial relations is the basis of h igher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people peopl e at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.
Objectives of Industrial Relations
The main objectives of industrial relations system are:-
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An industrial dispute may be defined as a conflict c onflict or difference of opinion between management and workers on the terms of employment. It is a disagreement between an employer and employees' representative; usually a trade union, over pay and other working conditions and can result in industrial actions. When an industrial dispute occurs, both the parties, that is the management and the workmen, try to pressurize each other. The management may resort to lockouts while the workers may resort to strikes, picketing or gheraos. As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in defined as any dispute or difference between employers and employers, or between employers and workmen, or between workmen workmen and which is connected with the th e employment or non-employment or the terms of employment or with the conditions of labor, of any person. This definition includes all the aspects of a dispute. It, not only includes the disagreement between employees and employers, but also emphasizes the difference of opinion between worker and worker. The disputes generally arise on account of poor wage structure or poor working conditions. This disagreement or difference could be on any matter concerning conc erning the workers individually or collectively. It must be connected with employment or non-employment or with the conditions of labor. From the point of view of the employer, an industrial dispute resulting in stoppage of work means a stoppage of production. This results in increase in the average cost of production since fixed expenses exp enses continue to be incurred. It also leads lead s to a fall in sales and the rate of turnover, leading to a fall in profits. The employer may also be liable to compensate c ompensate his customers with whom he may have contracted for regular supply. supply. Apart from the immediate economic effects, e ffects, loss of prestige and credit, cre dit, alienation of the labor force, and other non-economic, psychological and social consequences may also arise. Loss due to destruction of property, personal injury and physical intimidation or inconv enience also arises. For the employee, an industrial dispute entails loss of income. The regular income by way of wages and allowance ceases, and great hardship may be b e caused to the worker and an d his family. family. Employees also suffer from personal injury if they indulge into strikes n picketing; and the psychological and physical consequences of forced idleness. The threat of loss of employment in case of failure to settle the dispute
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to seeking changes in the workplace environment. Strikes sometimes occur so that employers listen more carefully to the workers and address their problems. Causes of strikes: Strikes can occur because of the following reasons: • • • • • • • • • •
Dissatisfaction with company policy Salary and incentive problems Increment not up to the mark Wrongful discharge or dismissal of workmen workm en Withdrawal of any concession or privilege Hours of work and rest intervals Leaves with wages and holidays Bonus, profit sharing, Provident fund and gratuity Retrenchment of workmen and closure of establishment Dispute connected with minimum wages TYPES OF STRIKE
•
•
Economic Strike: Under this type of strike, labors stop their work to enforce their economic demands such as wages and bonus. In these kinds of strikes, workers ask for increase in wages, allowances like traveling allowance, house rent allowance, dearness allowance, bonus and other facilities such as increase in privilege leave and casual leave. Sympathetic Strike: When workers of one unit or industry go on strike in sympathy with workers
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•
them on the same day. However, the sudden loss of so many employees all on one day can show the employer just what it would be like if they really went on strike. Wild cat strikes: These These strikes are conducted by workers or employees without the authority and consent of unions. In 2004, a significant number of advocated went on wildcat strike at the City Civil Court premises in Bangalore. They were protesting against some remarks allegedly made against them by an Assistant Commissioner Lockouts
A lockout is a work stoppage in which an employer preven ts employees from working. It is declared by employers to put pressure on their workers. This is different from a strike, in which employees refuse to work. Thus, a lockout is employers’ weapon while a strike is raised on part of employees. Acc to Industrial Disputes Act 1947, lock-out means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him. A lockout may happen for several reasons. When only part of a trade union votes to strike, the purpose of a lockout is to put pressure on a union by reducing the number of members who are able to work. For example, if a group of the th e workers strike so that the work of the rest of the workers becomes impossible or less productive, the employer may declare a lockout until the workers end the strike. Another case in which an employer may impose a lockout is to avoid avo id slowdowns or intermittent workstoppages. Occupation of factories has been the traditional method of response to lock-outs by th e workers' movement. PICKETING When workers are dissuaded from work by stationing certain men a t the factory gates, such a step is
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•
Strong and Stable Union: A strong and stable union in each industrial enterprise is essential for good industrial relations. The employers can easily ignore a weak un ion on the plea that it hardly represents the workers. The agreement with such a union will hardly be honored by a large section of workforce. Therefore, there must be strong and stable unions in every enterprise to represent the majority of workers and negotiate with the managemen t about the terms and conditions of service.
•
Mutual Trust: Both management and labor should help in the development of an atmosphere of mutual cooperation, confidence and respect. Management should adopt a progressive outlook and should recognize the rights of workers. Similarly, labor unions should persuade their members to work for the common objectives of the th e organization. Both the management and the unions should have faith in collective bargaining and other peaceful methods of settling disputes.
•
Workers’ Participation in Management: The participation pa rticipation of workers in the management of the industrial unit should be encouraged by b y making effective use of works committees, joint consultation and other methods. This will improve communication between managers and workers, increase productivity and lead to greater effectiveness.
•
Mutual Accommodation. The employers must recognize the right of collective bargaining of the trade unions. In any organization, there must be a great emphasis on mutual accommodation rather than conflict or uncompromising attitude. One must clearly understand that conflicting attitude does not lead to amicable labor relations; it may foster union militancy as the union reacts by engaging in pressure tactics. The approach must be of mutual “give and take rather than “take or leave.” The management should be willing to co-operate rather than blackmail the workers.
•
Sincere Implementation of Agreements. The management should sincerely implement the
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Prohibition of Strikes and Lock-Outs
Employees are prohibited from striking according to the section 22 of Industrial Disputes Act 1947. Employees, who are working in a public p ublic utility service, cannot go on a strike without giving a notice of strike within the six weeks before striking. They can not go on strike either within fourteen days of providing the strike notice or before the exp iry of the date of strike specified in any such notice. The same rule applies to the employers. Employers who are carrying on a public utility service can not lockout any an y of their employees without giving them a prior notice within six weeks before the lock out or o r within the fourteen days of giving such a notice. no tice. Moreover, the notice of strike or lockout is to be given in a prescribed manner showing the number of persons involved in the strike/lockout. The notice of strike or lockout is not n ot necessary when there is already a strike or lockout going on in the company. However, a notice should be issued on the day on which the lockout is declared just to intimate the appropriate authorities about the lockout. The employer is supposed to report the number of notices of strikes received by him to the appropriate Government or the authority prescribed by the government within the five days of receiving such notices.
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and permanent. This means it applies to temporary workers (or contractual employees) as well. Then this definition, primarily, primarily, talks about three relationships. They are the relationships between the: workmen and workmen, • workmen and employers, and • Employers and employers. • Thus, a trade union can be seen as a group of employees in a particular sector, whose aim is to negotiate with employers over pay, job security, working hours, etc, using the collective power of its members. In general, a union is there to represent the interests of its members, and may even engage in political activity where legislation affects their members. Trade unions are voluntary associations formed for the pursuit of protecting the common interests of its members and also promote welfare. They protect the economic, political and social interests of their members. Features of trade unions: It is an association either of employers or employees or of independent workers. They may consist • of :Employers’ association (eg., Employer’s Federation of India, Indian paper mill association, a ssociation, etc.)
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the company which states that the union has the right to negotiate with the employer. In these organizations, unions are said to be recognized for collective bargaining purposes. •
Voice in decisions affecting workers: The economic security of employees is determined not only by the level of wages and duration of their employment, but also by the management’s personal policies which include selection of employees for lay offs, retrenchment, promotion and transfer. These policies directly affect workers. The evaluation criteria for such decisions may not be fair. So, the intervention of unions in such decision making is a way through which workers can have their say in the decision making to safeguard their interests.
Member services During the last few years, trade unions have increased the range of services they offer their members. These include: 1. Educat Education ion and training training - Most Most unions unions run trainin training g course coursess for their members members on employme employment nt rights, health and safety and other issues. Some unions also help members who have left school with with little little educat education ion by offer offering ing course coursess on basic basic skills skills and course coursess leading leading to profes professio sional nal •
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•
achieving industrial peace
RECRUITMENT According to Edwin B. Flippo, “Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation”. Recruitment is the activity that links the employers and the job seekers. A few definitions of recruitment are: A process of finding and attracting capable applicants for employment. The process begins when • new recruits are sought and ends when their applications are submitted. The result is a pool of applications from which new employees are selected. It is the process to discover sources of manpower to meet the requirement of staffing schedule and • to employ employ effec effectiv tivee measur measures es for attrac attractin ting g that that manpowe manpowerr in adequate adequate number numberss to facili facilitat tatee effective selection of an efficient working force.
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organisat organisations. ions. Recruitment Recruitment process process involves involves a systemat systematic ic procedure procedure from sourcing the candidates candidates to arranging and conducting the interviews and requires many resources and time. A general recruitment process is as follows: •
• • • • •
Identifyi Identifying ng the vacancy: The recruitment recruitment process begins with the human resource resource department receiving requisitions for recruitment from any department of the company. company. These contain: • Posts to be filled • Number of persons • Duties to be performed • Qualifications required Preparing Preparin g the job description descripti on and person specificat sp ecification ion . Locating and developing the sources of required number and type of employees e mployees (Advertising etc). Short-listing and identifying the prospective employee with required characteristics. Arranging the interviews with the selected candidates. Conducting the interview and decision making
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Recruitment Vs Selection
Both recruitment and selection are the two ph ases of the employment process. The differences between the two are: Recruitment is the process of searching the candidates for employment and stimulating them to • apply for jobs in the organisation WHEREAS selection involves the series of steps by which the
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3.SIZE OF THE FIRM The size of the firm is an important factor in recruitment process. If the organization is planning to increase its operations and expand its business, it will think of hiring m ore personnel, which will handle its operations. 4.COST Recruitment incur cost to the employer, therefore, organizations try to employ that source of recruitment
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The recruitme recruitment nt policies policies of the competitors competitors also effect effect the recruitmen recruitmentt function function of the organisat organisations. ions. To face the competition, many a times the organisations have to change their recruitment policies according to the policies being followed by the competitors. Recent Trends Trends in Recruitment The following trends are being seen in recruitment: OUTSOURCING
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Hiring knowledgeable people for the job is essential for an employer. employer. But retention is even more important than hiring. There is no dearth of opportunities for a talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job he’s doing, he may switch over to some other more suitable job. In today’s today’s environment it becomes very v ery important for organizations to retain their employees. The top organizations are on the top because they value their employees and they know how to keep them glued to the organization. Employees stay and leave organizations for some reasons.
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Economic benefits : It includes paid holidays, leave travel concession, etc. e tc. Long-term incentives : Long term te rm incentives include stock options or stock grants. These incentives help retain employees in the organization's startup stage. Health insurance : Health insurance is a great benefit to the employees. It saves employees money as well as gives them a peace of mind that they have somebody to take care of them in bad times. It also shows the employee that the organization cares about the employee and its family. After retirement: It includes includ es payments that an Employee gets after he h e retires like EPF (Employee
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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Trusted by over 1 million members
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