Retain Employee

Employee Retaintion Step.

1. In advance( may a week before the last day) writing him a mail and stating that though he has decided to move on but you ( as in HR) would like to spend some time to understand his prespctive of the comapny

2. Fix a date and time and book a conf room for the same, so that at th elast min you are not runing around with the individual to find a comfortable place for interacting with him/her

3. Calculte the full and final settlements with tax obligations so that you could settle the same on the lsat day with out bothering the employee and asking to him to come again just to collect the cheque.

4. Spend time and LISTEN, you could read between the lines to understand ( may be the reason for quittting) Brief him about the company policy which may have helped him to alter the decision

5. Ask for his personal mail id and keep in touch by sending mailer regarding company news letters, job vacancies etc6. Last but not the elast assit him in all the formalities that are required to be completed before the exit ( like hading over the drawer keys, deleting mail id, handing over of Lib books, CD etc, getting the clearance cheque from the accounts) and then see the person off.

Conflict and Negotiation

Conflict and Negotiation

Conflict is when two or more values, perspectives and opinions are contradictory in nature and haven't been aligned or agreed about yet, including:

1. Within yourself when you're not living according to your values;

2. When your values and perspectives are threatened; or

3. Discomfort from fear of the unknown or from lack of fulfillment.Conflict is inevitable and often good, for example, good teams always go through a "form, storm, norm and perform" period. Getting the most out of diversity means often-contradictory values, perspectives and opinions.

Intergroup Functional Conflict

Functional conflict: a confrontation between groups that enhances and benefits the organization’s performance.

When conflict focuses on tasks, constructive debate can improve decision making and work outcome.

Functional conflict can be thought of as a type of creative tension.

Intergroup Dysfunctional Conflict

Dysfunctional conflict: any confrontation or interaction between groups that harms the organization or hinders the achievement of organizational goals.

Management must seek to eliminate dysfunctional conflict.

Such conflict can negatively influence performance by shifting group members’ attention away from important tasks.

Conflict and Organizational Performance.

Conflict may have either a positive or a negative

impact on organizational performance, depending on:

The nature of the conflict

How the conflict is managed

Intergroup Conflict and Group Productivity

Researchers have identified three types of conflict that can influence group functioning:

Task conflict: members having differences in viewpoints and opinions pertaining to the group’s task.

Relationship conflict: being aware of interpersonal incompatibilities between group members than can lead to feelings of dislike, tension, irritation, and frustration.

Process conflict: an awareness of controversies regarding how tasks will be accomplished.

Why Intergroup Conflict Occurs

Work Interdependence

Pooled interdependence: requires no interaction among groups because each performs separately.

Sequential interdependence: requires one group to complete its task before another can complete its task.

Reciprocal interdependence: requires each group’s output to serve as input to other groups in the organization.

Differences in Goals

Limited resources: when limited resources must be allocated, mutual dependencies increase, and any differences in group goals become more apparent.

Reward structures: intergroup conflict is more likely to occur when the reward system is related to individual group performance rather than to overall organizational performance.

Managing Intergroup Conflict Through Resolution

Ø Problem solving
Ø Super ordinate goals
Ø Expansion of resources
Ø Avoidance
Ø Smoothing
Ø Compromise
Ø Authoritative command
Ø Altering the human variable
Ø Altering structural variables
Ø Identifying a common enemy

Cross Cultural Negotiations

Ø Culture influences negotiation practices.
Ø The negotiation approach is affected by:
Ø Individualism
Ø Uncertainty avoidance
Ø Power distance
Ø Masculinity
Ø Communication and language barriers influence negotiation outcomes.

Group Negotiations

Group negotiation takes place whenever one group’s work depends on the cooperation and activities of another group over which the first group’s manager has no control.

Managing Intergroup Conflict Through Negotiation

Ø Pre-negotiation Tasks
Ø Understand the other side
Ø Identify all the options

Negotiation Tactics

Ø Good guy/bad guy team
Ø The nibble
Ø Joint problem solving
Ø Power of competition
Ø Splitting the difference
Ø Low-balling

Alternatives to Direct Negotiation

Mediation: using a third party to mediate the dispute; parties are not bound by the proposed resolution.

Impartial person works with each side to reach an agreement that benefits them both and the organization as a whole.

Bringing in mediator early enough allows conflicts to be resolved before group hostilities set in.

Arbitration: using a third party to resolve the dispute; parties are bound by the arbitrator’s decision.

Arbitrators have authority to render a decision in favor of one group, both groups, or to ask for more information.

Absenteeism

What is absent or absenteeism?

What does it mean and can I overlook it or should I deal with it? What will happen if I don't deal with it? What harm can it do if an employee is a few minutes late?

Absent does not only mean not being at work. Absent also means:

Arriving late (or poor timekeeping, if you like. It is still absent as long as the employee is not at work.)

Leaving early (again, if you like, poor timekeeping. It is still absent if he is not at work)

Extended tea or lunch breaks - the employee is not at the workstation, and therefore absent.

Attending to private business during working hours - the employee is at work, but is not attending to his/her duties in terms of the employment contract - and is therefore absent.

toilet breaks - same as extended lunch or tea breaks.

Feigned illness - thus giving rise to unnecessary visits to the on-site clinic, or take time off to "visit the doctor" - which they never do, because they don't need a medical certificate for less than 2 days off.

Undue length of time in fetching or carrying (tools from the tool room, for example, or drawings from the drawing office, etc)

Other unexplained absences from the workstation or from the premises.

There are a number of remedies- a large number, in fact - that can be used to combat this scourge.

The duty of the employee to be at work.

The very basis of the employment contract (whether written or not) is that the employee has to:
[a] come to work, and [b] be on time

in order to perform the duties which he/she has been hired to do, and he/she must remain at the workstation for the contracted number of hours per day in order to perform the requisite duties.

If the employee does not do that, he/she cannot fulfill his/her contractual obligation, and is therefore in breach of contract.

This obligation - to come to work and stay on the job whilst at work - does not only come out of the Employment Contract. It arises also from three other sources - Common Law, Statutes, and Company Rules and Regulations.

Absence from Work.

Absence where the employee does not turn up for work at all can sometimes be the most difficult type of absenteeism to handle - simply because there can be a host of reasons for this, and you will have to sift out the truth from the B.S. before deciding what action to take.
Remember though that the employee must justify the absence.

This type of absence may be due to personal problems - sick wife, sick kids, urgent financial crisis, death in the family or death of a close relative, or some other domestic crisis that requires the employee to stay at home to handle it.

Under such circumstances, the employee should notify you by telephone, by a message delivered with another employee, by a telephone call from a friend to you, by a runner with a cleft stick, or some means. It is very seldom that there is just no means whatsoever of notifying the employer of the absence - the usual excuse (totally unacceptable) is that "there was no telephone."

How to Deal with Employee Absenteeism

Change Management Style: We are all aware of the fact that when employees call in ill, it does not mean they are truly too physically ill to work. One reason, outside of illness, that employees are absent is stress, and the number one reason employees are stressed has to do with their relationship with their manager/supervisor.Management styles that are too authoritarian tend to promote high levels of absenteeism among employees. Authoritarian managers are managers who have poor listening skills, set unreachable goals, have poor communication skills, and are inflexible. In other words, they yell too much, blame others for problems, and make others feel that it must be their way or the "highway." Authoritarian managers tend to produce high absenteeism rates. By identifying managers who use an authoritarian style, and providing them with management training, you will be taking a positive step not only toward reducing absenteeism, but also reducing turnover, job burnout, and employee health problems such as backaches and headaches.

Change Working Conditions: The employees in your company probably work in a well-lighted climate controlled building. The working conditions I am referring to relate to coworker relationships. Not only does relationship stress occur between the employee and manager, but it also exists between employees. Frequently I hear employees say they did not go to work because they are fearful of or angry with another employee. These employees usually report they just could not deal with "so and so" today, so they called in ill. Companies that adopted policies and values that promote employee respect and professionalism, and promote an internal conflict resolution procedure, are companies that reduce employee stress. A reduction in employee stress reduces employee absenteeism.

Provide Incentives: Giving employees incentives for reduced absenteeism is not the same as rewarding or giving employees bonuses for reduced absenteeism. An incentive provides an employee with a boost to their motivation to avoid unnecessary absenteeism. It simply helps the employee decide to go to work versus staying home .The types of incentive programs used by companies are numerous. Some companies allow employees to cash-in unused sick days at the end of every quarter, others give an employee two hours of bonus pay for every month of perfect attendance; and still others provide employees with a buffet lunch, a certificate of achievement, or even a scratch-off card concealing prizes. The type of incentive program that your company uses should be one created especially for your company.

Grievance

Grievance means any type of dissatisfaction or discontentments arising out of factors related to an employee’s job which he thinks are unfair. A grievance arises when an employee feels that something has happened or is happening to him which he thinks is unfair, unjust or inequitable. In an organization, a grievance may arise due to several factors such as:

*Violation of management’s responsibility such as poor working conditions
*Violation of company’s rules and regulations
*Violation of labor laws
*Violation of natural rules of justice such as unfair treatment in promotion, etc.

Various sources of grievance may be categorized under three heads:

(i) management policies,

(ii) working conditions,

(iii) personal factors

Grievance resulting from management policies include:

Wage rates
Leave policy
Overtime
Lack of career planning
Role conflicts
Lack of regard for collective agreement
Disparity between skill of worker and job responsibility

Grievance resulting from working conditions include:

Poor safety and bad physical conditions
Unavailability of tools and proper machinery
Negative approach to discipline
Unrealistic targets

Grievance resulting from inter-personal factors include

Poor relationships with team members
Autocratic leadership style of superiors
Poor relations with seniors
Conflicts with peers and colleagues

It is necessary to distinguish a complaint from grievance. A complaint is an indication of employee dissatisfaction that has not been submitted in written. On the other hand, a grievance is a complaint that has been put in writing and made formal. Grievances are symptoms of conflicts in industry. Therefore, management should be concerned with both complaints and grievances, because both may be important indicators of potential problems within the workforce. Without a grievance procedure, management may be unable to respond to employee concerns since managers are unaware of them. Therefore, a formal grievance procedure is a valuable communication tool for the organization.

Grievance procedure is a formal communication between an employee and the management designed for the settlement of a grievance. The grievance procedures differ from organization to organization.

1. Open door policy:

Open door policy: Under this policy, the aggrieved employee is free to meet the top executives of the organization and get his grievances redressed. Such a policy works well only in small organizations. However, in bigger organizations, top management executives are usually busy with other concerned matters of the company. Moreover, it is believed that open door
policy is suitable for executives; operational employees may feel shy to go to top management.

2. Step-ladder policy

Step ladder policy: Under this policy, the aggrieved employee has to follow a step by step procedure for getting his grievance redressed. In this procedure, whenever an employee is confronted with a grievance, he presents his problem to his immediate supervisor. If the employee is not satisfied with superior’s decision, then he discusses his grievance with the departmental head. The departmental head discusses the problem with joint grievance committees to find a solution. However, if the committee also fails to redress the grievance, then it may be referred to chief executive. If the chief executive also fails to redress the grievance, then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding on both the parties.

Arbitration

Arbitration , in law, is a form of Alternative Dispute Resolution - specifically, a legal alternative to litigation, whereby the parties to a dispute agree to submit their respective positions (through agreement or hearing) to a NEUTRAL third party called the Arbitrator (s) or Arbiter (s) for resolution. The "Disputes-Settlement-Trust" plays the role of a NEUTRAL in the Arbitration conducted by the Trust.

The comprehensive nature of this Act is the result of the United Nations Commission on International Commercial Arbitration, 1985 because Geneva Assembly of the United nations had emphasised and also recommended uniform model law on arbitral among the countries

As defined under Section 2(1)(a) it covers any arbitration whether it is administered by any permanent arbitral institution or not. It also covers arbitration relied on voluntary agreement by the private parties or by operation of law.

The Arbitration and Conciliation Act does not provide definition of the word "Arbitration" but its literally recognised meaning is that "settlement" of differences or disputes by mutual understanding or agreement by the parties where the rights and liabilities of the parties are determined in judicial point of view which are binding to them, such settlement may be before the arbitral tribunal but not by the court of law.

The new Act has limited the powers of Court rather restricted the exercise of judicial powers, in other words confined the extent of judicial intervention as provided under Section 5 of the Act - "Notwithstanding anything contained in any other law for the time being in force, in matters governed by this part, no judicial authority shall intervene except where so provided in this part." Finality of Arbitral Award under Section 35 is subject to this part according to which an arbitral award shall be final and binding on the parties and persons claiming under them respectively. Thus, the Act itself provided finality of arbitral awards and its enforcement (Section 36) without intervention of the Court.

The Arbitral Tribunals are empowered to settle any objections raised in respect of jurisdiction or scope of authority of the arbitrators.

Arbitration is the reference of dispute or difference between two or more parties to a person chosen by the parties or appointed under statutory authority, for determination of the same. In a broad sense, it is substitution of ordinary judicial machinery by a mutually chosen tribunal i.e., an Arbitrator.

The first stage in arbitration is the formulation of the arbitration agreement whereby the parties agree to submit their present or future differences to arbitration. In case of any dispute, one of the parties to the contract must file a request for Arbitration and pay the required fee to an Arbitration Institution referred to in the agreement that provides Arbitration services. Often the Arbitration Institution will suggest an arbitrator or arbitrators to which the parties must agree. The arbitrator may be an attorney, judge, or business person.

After the parties have defined their dispute, there will be a hearing, often at the arbitrator's office, where the parties present evidence and witnesses in a fairly informal manner without the formal rules of evidence used in court litigation. After the evidence has been presented, the arbitrator reaches a decision and usually later sends the parties a written reasoned opinion (an award).

In our country, an award passed by an arbitration tribunal has the force of a decree. Thus, it can be executed in the same manner in which a court decree can be executed.

Major kinds of Arbitration

(1) Ad-hoc Arbitration: When a dispute or difference arises between the parties in course of commercial transaction and the same could not be settled friendly by negotiation in form fo conciliation or mediation, in such case ad-hoc arbitration may be sought by the conflicting parties. This arbitration is agreed to get justice for the balance of the un-settled part of the dispute only.

(2) Institutional Arbitration: This kind of arbitration there is prior agreement between the parties that in case of future differences or disputes arising between the parties during their commercial transactions, such differences or disputes will be settled by arbitration as per clause provide in the agreement.

(3) Statutory Arbitration: It is mandatory arbitration which is imposed on the parties by operation of law. In such a case the parties have no option as such but to abide by the law of land. It is apparent that statutory arbitration differs from the above 2 types of arbitration because (i) The consent of parties is not necessary; (ii) It is compulsory Arbitration; (iii) It is binding on the Parties as the law of land; For Example: Section 31 of the North Eastern Hill University ACt, 1973, Section 24,31 and 32 of the Defence of India Act, 1971 and Section 43(c) of The Indian Trusts Act, 1882 are the statutory provision, which deal with statutory arbitration.

(4) Domestic or International Arbitration: Arbitration which occurs in India and have all the parties within India is termed as Domestic Arbitration. An Arbitration in which any party belongs to other than India and the dispute is to be settled in India is termed as International Arbitration.

(5) Foreign Arbitration: When arbitration proceedings are conducted in a place outside India and the Award is required to be enforced in India, it is termed as Foreign Arbitration

Rules and Disciplinary Procedure

The need for rules and disciplinary procedures

Key Points

Rules are necessary because they set standards. A good disciplinary procedure helps employees* keep the rules, and helps employers deal fairly with those who do not.

Rules will normally cover issues such as absence, timekeeping and holiday arrangements, health and safety, use of the organisation's equipment and facilities, misconduct, sub-standard performance, and discrimination, bullying and harassment.

Rules and procedures should be clear, and should preferably be put in writing. They should be known and understood by all employees

All employees should have ready access to a copy of the rules and disciplinary procedures.

Management should aim to secure the involvement of employees and any recognised trade union or other employee representatives when rules and disciplinary procedures are introduced or revised

Rules should be reviewed from time to time and revised if necessary

Management should ensure that those responsible for operating disciplinary rules understand them and receive appropriate training

What should rules cover?

Employers should be aware that any such requirement must be solely on the basis of health or safety, and should not discriminate between sexes or on the basis of age, race, disability, sexual orientation or religion or belief

While the following is not an exhaustive list, as different organisations will have different requirements, examples of the types of issues that rules might cover are:

Timekeeping
'clock-in' times
lateness.

Absence
authorising absence
approval of holidays
notification of absence

Health and safety

personal appearance – any special requirements regarding, for example, protective clothing, hygiene or the wearing of jewellery.

Employers should be aware that any such requirement must be solely on the basis of health or safety, and should not discriminate between sexes or on the basis of race, disability, sexual orientation or religion or belief

smoking policy
hazards/machinery/chemicals
policies on alcohol, drug or other substance abuse.

Discrimination, bullying and harassment

equal opportunities policy

policy on harassment relating to race, sex, disability, sexual orientation, religion or belief
bullying and harassment policy.

non-discriminatory clothing or uniform policies

standards of written or spoken language needed for the safe and effective performance of the job.

Gross misconduct

the types of conduct that might be considered as 'gross misconduct' (this is misconduct that is so serious that it may justify dismissal without notice).

What should disciplinary procedures contain?

When drawing up and applying procedures, employers should always bear in mind the requirements of natural justice. For example, employees should be informed of the allegations against them, together with the supporting evidence, in advance of the meeting. Employees should be given the opportunity to challenge the allegations before decisions are reached and should be provided with a right to appeal.

Good disciplinary procedures should:

be put in writing

say who they apply to (if there are different rules for different groups)

be non-discriminatory

provide for matters to be dealt with speedily

allow for information to be kept confidential

tell employees what disciplinary action might be taken

say what levels of management have the authority to take the various forms of disciplinary action

require employees to be informed of the complaints against them and supporting evidence, before any meeting

give employees a chance to have their say before management reaches a decision

provide employees with the right to be accompanied

provide that no employee is dismissed for a first breach of discipline, except in cases of gross misconduct

require management to investigate fully before any disciplinary action is taken

ensure that employees are given an explanation for any sanction andallow employees to appeal against a decision.

Discipline Science or Art

Conducting effective discipline sessions are both an art and a science. We’ll teach you where you can compromise . . . and where you can’t.

Basically, there are three forms of disciplinary action:

You can give a written warning
You can suspend an employee without pay for a designated span of time
You can dismiss the employee

A part of this “art” we mentioned above involves understanding which type of discipline session might be appropriate when. The other part involves determining what you can say throughout a session. You do have some leeway depending on the particulars of your employee and also his breach. Every case is different, every person is distinct, and most every workplace culture is unique . . . so it’s hard to submit carved-in-stone rules.

Discipline in the workplace

Discipline in the workplace. It sounds almost like an oxymoron, doesn’t it? After all, discipline is something used with children, right? And hopefully, you've got all adults working for you. So the notion of conducting a discipline session makes everyone feel uncomfortable - as though you are somehow overstepping your bounds.

That discomfort you’re feeling can make you go easy on someone (“Oh, it more than likely won’t crop up again so I’m not going to do anything about it”) or go too far (“A buyer complained that she was on hold too long so I’m writing you up!”)

Neither option can be ideal for you, your association or your employee. You do need to discipline an employee whose actions have crossed the line . . . however you need to accomplish it properly.
First things first: recognize what discipline actually means. It is a follow-up to coaching. You do it because you have already given corrective feedback and suggested ways to correct the problem -and the employee in question has failed to heed your advice. Discipline is a way of declaring, “That correction needs to occur. If it doesn’t, there will be consequences.” It will sound basic, yet the truth is it's easy to make mistakes in this arena which a) result in an ineffective session, after which nothing changes, b) strain your relationship with your employee, c) anger or upset him or her to the point of much worse performance (this, in turn, will lessen morale), and/or d) lead to legal action against you or your firm.

Approach for Employee Discipline

positive discipline approach

Counseling: Counseling is an important part of the discipline process, because it gives a supervisor the opportunity to identify employee work behavior problems and discuss possible solutions with him. The goal of this phase is to make employee aware of organizational policies and rules. Counseling by a supervisor in the work unit can have positive effects also. Often, employees simply need to be made aware of rules. An oral warning can also be given to employee during counseling. Confrontation helps to understand the employee point of view as well. However, proper training should be given to the supervisors regarding counseling skills to make this process successful.

Written warning: If employee behavior has not been improved by counseling sessions, then a second conference is held between the supervisor and the employee. This stage is documented in written form. As part of this phase, the employee and the supervisor develop written solutions to prevent further problems from occurring.

Final warning: When the employee does not follow the written solutions, a final warning conference is held. In that conference the supervisor emphasizes to the employee the importance of correcting the inappropriate actions. Some firms incorporate a decision-day off, in which the employee is given a day off with pay to develop a firm, written action plan to remedy the problem behaviors. The idea is to impress on the offender the seriousness of the problem and the manager’s determination to see that the behavior is changed.

Discharge: If the employee fails to follow the action plan that was developed and further problem behaviors exist, then the supervisor will discharge the employee.

Progressive Discipline Approach

It is a step by step program designed to correct performance problems arising out of employee misconduct. This approach typically follows four progressive steps to rectify offenses committed by an employee. It suggests that actions to modify behavior become progressively more severe as the employee continues to show improper behavior.

Oral reprimands: It is a verbal interaction between the employees and supervisor where they discuss the problem behavior and the expectations to change the behaviors. An oral warning is issued as an infor¬mal reprimand that is simply noted in the record.

Written reprimand: It involves the documentation between employees and supervisor if the behavior continues or if the employee further commits a serious offense. A written warning is more official and summarizes the previous oral attempts. This written feedback is discussed with the employee and then placed in his personnel file.

Suspension: The third step is suspension with¬out pay; its purpose is to emphasize the seriousness of the offense and necessity of change.

Dismissal: The final step is dismissal of employee and is used only when previous steps have failed to change unacceptable behavior.

Factors for Effective Disciplinary.

Factors necessary for effective disciplinary system include:

Training of supervisors is necessary: Supervisors and mangers need to be trained on when and how discipline should be used. It is necessary to provide training on counseling skills as these skills are used while dealing with problem employees. Moreover, discipline decisions taken by trained supervisors are considered fair by both employees and managers.

Centralization of discipline: Centralized means that the discipline decisions should be uniform throughout the organization. The greater the uniformity, higher will be the effectiveness of discipline procedure.

Impersonal discipline: Discipline should be handled impersonally. Managers should try to minimize the ill feelings arising out of the decisions by judging the offensive behavior and not by judging the person. Managers should limit their emotional involvement in the disciplinary sessions.

Review discipline decisions: The disciplinary decisions must be reviewed before being implemented. This will ensure uniformity and fairness of the system and will minimize the arbitrariness of the disciplinary system.

Notification of conduct that may result in discipline: Actions that lead to misconduct can be listed and documented so the employees are aware of such actions. This will unable them to claim that they have not been notified, in advance, regarding the same.

Information regarding penalties: The employer should define the penalties and other actions like warnings, reprimands, discharge and dismissal well in advance. All these action plans must be communicated to the employees.

Discipline shall be progressive: Discipline system should be progressive in nature. In a progressive discipline approach the severity of actions to modify behavior increases with every step as the employee continues to show improper behavior. The advantage of this approach is that employees can’t take it for granted.

Documentation: Effective discipline requires accurate, written record keeping and written notification to the employees. Thus less chance will be left for the employee to say the he “did not know” about the policy.

Discipline should be fair: The disciplinary decision should be fair enough for the employee. Both over-penalization and under-penalization are considered to be unfair for the problem employee. Moreover, an internal fairness is to be maintained, that is, two employees who have committed the same offense should be equally punished.

Discipline shall be flexible and consistent: The manager administering discipline must consider the effect of actions taken by other managers and of other actions taken in the past. Consistent discipline helps to set limits and informs people about what they can and cannot do. Inconsistent discipline leads to confusion and uncertainty.

Disciplinary action should be prompt: The effective discipline should be immediate. The longer time lag between the misconduct offense and the disciplinary action will result in ineffectiveness of the discipline.

Lockouts

lockout is a work stoppage in which an employer prevents 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 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 slowdowns or intermittent work-stoppages. Occupation of factories has been the traditional method of response to lock-outs by the workers' movement.

Strike

A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted. When workers collectively cease to work in a particular industry, they are said to be on strike.

According to Industrial Disputes Act 1947, a strike is “a cessation of work by a body of persons employed in an industry acting in combination; or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment; or a refusal under a common understanding of any number of such persons to continue to work or to
accept employment”. This definition throws light on a few aspects of a strike. Firstly, a strike is a referred to as stoppage of work by a group of workers employed in a particular industry. Secondly, it also includes the refusal of a number of employees to continue work under their employer.

In a strike, a group of workers agree to stop working to protest against something they think is unfair where they work. Labors withhold their services in order to pressurize their employment or government to meet their demands. Demands made by strikers can range from asking for higher wages or better benefits 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
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 of another unit or industry who are already on strike, it is called a sympathetic strike. The members of other unions involve themselves in a strike to support or express their sympathy with the members of unions who are on strike in other undertakings. The workers of sugar industry may go on strike in sympathy with their fellow workers of the textile industry who may already be on strike.

General Strike: It means a strike by members of all or most of the unions in a region or an industry. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers. These strikes are usually intended to create political pressure on the ruling government, rather than on any one employer. It may also be an extension of the sympathetic strike to express generalized protest by the workers.

Sit down Strike: In this case, workers do not absent themselves from their place of work when they are on strike. They keep control over production facilities. But do not work. Such a strike is also known as 'pen down' or 'tool down' strike. Workers show up to their place of employment, but they refuse to work. They also refuse to leave, which makes it very difficult for employer to defy the union and take the workers' places. In June 1998, all the Municipal Corporation employees in Punjab observed a pen down strike to protest against the non-acceptance of their demands by the state government.

Slow Down Strike: Employees remain on their jobs under this type of strike. They do not stop work, but restrict the rate of output in an organized manner. They adopt go-slow tactics to put pressure on the employers.

Sick-out (or sick-in): In this strike, all or a significant number of union members call in sick on the same day. They don’t break any rules, because they just use their sick leave that was allotted to 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 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

Reason for Industrial Disputes

The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes. The economic causes will include issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments. The non economic factors will include victimization of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc.

Wages and allowances: Since the cost of living index is increasing, workers generally bargain for higher wages to meet the rising cost of living index and to increase their standards of living. In 2002, 21.4% of disputes were caused by demand
of higher wages and allowances. This percentage was 20.4% during 2003 and during 2004 increased up to 26.2%. In 2005, wages and allowances accounted for 21.8% of disputes.

Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes. During the year 2002, disputes caused by personnel were 14.1% while those caused by retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003, a similar trend could be seen, wherein 11.2% of the disputes were caused by personnel, while 2.4% and 0.6% of disputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the disputes were caused by personnel, and only 0.4% were caused by retrenchment.

Indiscipline and violence: From the given table, it is evident that the number of disputes caused by indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused because of indiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and 41.6% of disputes were caused due to indiscipline respectively. During the year 2003, indiscipline accounted for the highest percentage (36.9%) of the total time-loss of all disputes, followed by cause-groups wage and allowance and personnel with 20.4% and11.2% respectively. A similar trend was observed in 2004 where indiscipline accounted for 40.4% of disputes.

Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005 respectively.

Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were because of leaves and working hours.

Miscellaneous: The miscellaneous factors include

- Inter/Intra Union Rivalry

- Charter of Demands

- Work Load

- Standing orders/rules/service conditions/safety measures

- Non-implementation of agreements and awards etc.

Functions of Industrial Relations

Functions of Industrial Relations

1.Communication is to be established between workers and the management in order to bridge the traditional gulf between the two.

2.To establish a rapport between managers and the managed.

3.To ensure creative contribution of trade unions to avoid industrial conflicts, to safeguard the interest of workers on the one hand and the management on the other hand, to avoid unhealthy, unethical atmosphere in an industry.

4.To lay down considerations which may promote understanding, creativity and co-operation to raise industrial productivity, to ensure better workers’ participation?

The industrial scene is affected by lack of central values, class struggle, competition and unhealthy compromisers. Even in the latter part of the century, the management considers trade unions as a nuisance or a hurdle. The trade unions on the other hand considered the management and managers as exploiters. Workers are misled by their trade union leaders on the one hand and they allow themselves to be exploited by management.

The trade unions are organs of political organizations and they follow the ideologies of those organizations even at the cost of their own interest in the industry. As a result, the collective bargaining ends in either aggressive bargaining or futile waste of time. These and many other considerations led the ILO to formulate certain principles for promoting healthy industrial relations. They are:

(a)Good labor-management relations depend on employer’s and trade union’s capacity to deal with their mutual problems freely, independently and responsibly.

(b)The trade unions and the employers and their organizations should be interested in resolving their problems through collective bargaining and if necessary with the assistance of proper government agency.

(c)Workers and employers’ organizations should be desirous of associating with government agencies taking into consideration the general, social, public and economic measures affecting employers and workers relations.

Objective of Industrial Relation

The primary objective of industrial relations is to maintain congenial relations between employees and employer. The other objectives are:

1.To promote and develop congenial labor management relations.

2.To enhance the economic status of the worker by improving wages, benefits and by helping the worker in evolving sound budget.

3.To regulate the production by minimizing industrial conflicts through state control.

4.To socialize industries by making the government as an employer.

5.To provide an opportunity to the workers to have a say in the management and decision-making.

6.To improve workers’ strength with a view to solve their problems through mutual negotiations and consultation with the management.

7.To encourage and develop trade unions in order to improve the workers’ strength,8.To avoid industrial conflict and their consequences and

9.To extend and maintain industrial democracy.

10.To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits.

11.To improve the economic conditions of workers in the existing state of industrial managements and political government.

12.Socialization of industries by making the state itself a major employer
Vesting of a proprietary interest of the workers in the industries in which they are employed

Advantage of Good Industrial Relation

The healthy industrial relations are key to the progress and success. Their significance may be discussed as under –

Uninterrupted production – The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption.

Reduction in Industrial Disputes – Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production.

High morale – Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results.

Mental Revolution – The main object of industrial relation is a complete mental 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 consonance with a spirit of true democracy. Both should think themselves 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 – Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.Thus, it is evident that good industrial relation is the basis of higher 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 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.

System of Industrial Relation

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.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:Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions.

Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court ad the like. It also includes third parties and labor and tribunal courts.

SCOPE: 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, marketing, price fixation and disposition of profits among others.The scope or industrial relations is 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

Employee and Employer

For better understanding of industrial relations, various terms need to be defined here: Industry:Industrial Disputes Act 1947 defines an industry as any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes whether or not any capital has been invested for the purpose of carrying on such activity; or such activity is carried on with a motive to make any gain or profit. Thus, an industry is a whole gamut of activities that are carried on by an employer with the help of his employees and labors for production and distribution of goods to earn profits.

Employer:An employer can be defined from different perspectives as:-

a person or business that pays a wage or fixed payment to other person(s) in exchange for the services of such persons.

a person who directly engages a worker/employee in employment.

any person who employs, whether directly or through another person or agency, one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed.As per Industrial Disputes Act 1947 an employer means:-

in relation to an industry carried on by or under the authority of any department of [the Central Government or a State Government], the authority prescribed in this behalf, or where no authority is prescribed, the head of the department;

in relation to an industry carried on by or on behalf of a local authority, the chief executive officer of that authority;

Employee: -

Employee is a person who is hired by another person or business for a wage or fixed payment in exchange for personal services and who does not provide the services as part of an independent business.

An employee is any individual employed by an employer.

A person who works for a public or private employer and receives remuneration in wages or salary by his employer while working on a commission basis, piece-rates or time rate.

Employee, as per Employee State Insurance Act 1948, is any person employed for wages in or in connection with work of a factory or establishment to which the act applies.

In order to qualify to be an employee, under ESI Act, a person should belong to any of the categories:

those who are directly employed for wages by the principal employer within the premises or outside in connection with work of the factory or establishment.

those employed for wages by or through an immediate employer in the premises of the factory or establishment in connection with the work thereof

those employed for wages by or through an immediate employer in connection with the factory or establishment outside the premises of such factory or establishment under the supervision and control of the principal employer or his agent.

employees whose services are temporarily lent or let on hire to the principal employer by an immediate employer under a contract of service (employees of security contractors, labor contractors, house keeping contractors etc. come under this category).

Employment: The state of being employed or having a job.

Labor market: The market in which workers compete for jobs and employers compete for workers. It acts as the external source from which organizations attract employees. These markets occur because different conditions characterize different geographical areas, industries, occupations, and professions at any given time.

Industrial Relations

Introduction to Industrial Relations

Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management).Concept of Industrial Relations:The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”. By “relations” we mean “the relationships that exist within the industry between the employer and his workmen.”

The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. 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 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-management (or labor) relations. Now its meaning has become more specific and restricted. 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.