Positive Employee Relations

Introduction

Objectives
(i) Positive discipline encompasses psychological aspects of an individual. It aims at shaping positive behaviour of individuals, groups and organizations. (ii) Positive Employees Relations are affected through Motivation, Leadership, Communication, Decision-Making (iii) Apply OB principles to change behaviour (iv) Learn to build positive employee relations.

Traditional & New Assumptions

People were risks, threats and costs People were lazy and required close supervision Money as the only motivator, policy of carrot & stick Relation of master & servant HR is an assets People require caring People require money as well as recognition Relationship of mentoring

Traditional & New Assumptions

Punishment was considered as the only driving force Conditions of work were inhuman People require involvement & empowerment Need for continuous improvement

Principles of Scientific Management by Frederick Winslow Taylor (1911)

Behaviour
Refers to actions or reactions of an object or organism, usually in relation to the environment. Behaviour may be conscious or subconscious, overt or covert, voluntary or involuntary. Behaviour is the factor of personality and circumstances or situation. B f(P,S)

OB Theories for Positive Employee Relations

Motivation Leadership Communication Decision-Making Power authorities

Motivation
Performance=f (ability, willingness or desire to use ability in achieving personal or organizational goals) Motivation is result of the interaction between the individual and the situation. Motivation is willingness to exert a high level of effort towards organizational goals, conditioned by the efforts ability to satisfy some individual need. The efforts should not only be of high intensity, but must also be channelised in such a way that organizational goals are accomplished and personal goals are satisfied.

Theories of Motivation

(i) Rensis Likert : System 4

The system 4 model arose from Linkert (1961) work experience. He identified four styles of systems management: System 1: Exploitative authoritative System 2: Benevolent authoritativeallows some upward opportunity for consultation System 3: Consultative System 4:Participative-The use of principle of supportive relationship throughout the work group, group decision making, group method of supervision and setting of high goals

Abraham Maslow: A Hierarchy of needs

(i) Physiological needs : food, water, shelter, sleep, air (ii) Safety & Security needs : Protection from danger, threats or deprivation and the need for stability of environment (iii)Social needs: a sense of belonging to a society and its groups e.g. family, friends, organization (iv)Esteem needs: Self respect, self esteem, appreciation, value, recognition, and status (v) Self Actualization needs :Self fulfillment, Personal Development, accomplishment, creative faculties.

Douglas McGregor (1980) Theory X and Theory Y

Mc Gregor identified two distinctive and extreme sets of assumptions made by managers about employees, theory X and theory Y. The most people would come between the two. Theory X Theory X is based on three premises: (i) People dislike work (ii) They are motivated mainly by money (iii) They are inherently lazy

Theory Y:
This theory is based on the premise that work is necessary to ones psychological needs. (i) people wish only to be interested in their work and under right conditions they will enjoy working. (ii) They impose self discipline themselves and their activities. on

Fredrick Herzbergs Two Factor Theory (1959)

He proposed that opposite of dissatisfaction is no dissatisfaction. The managers who seem to eliminate factors that can create job dissatisfaction may bring about peace but not necessarily motivation.

True Motivators
Organizational Culture Achievement Orientation, Participation, Delegation, Empowerment Management by objectives or Working for results Continuous Learning Opportunities (Growth) Full appreciation / Recognition of Work

Motivating Factor
Provide for Basic Needs Proper Job Design Right Person at Right Place Example of High Standard Necessary Information to the workers Sense of Freedom (absence of anxiety) Opportunity for Participation Sense of Accomplishment Organization Culture Employee Welfare Transparency

Leadership-Styles
Autocratic Consultative Participative Democratic

Communication & Employee Relations

Passive Communication One-way Communication Active Communication Non verbal Communication

Decision Making The Key Feature is Communication

The process requires commitment to and understanding of the following: Problem definition Process definition- includes process of consultation and participation, that is to be allowed Time Scale- the longer to leave a decision, it would have higher acceptance Information gathering Alternatives - including taking no decision Implementation

Power & Authority

Charismatic Traditional Legal-rational

Categories of Power by French & Raven,1959

Reward Power Physical Power Exert Power means knowledge is power Referent Power based on personal friendship Legitimate Power

Participative Management, Empowerment, Quality Circles and Workers Participation

Workers Participation in Management (WPM) The philosophy underlying workers participation stresses: (i) Democratic Participation in Decision Making; (ii) Maximum Employer-Employee Collaboration; (iii) Minimum State intervention; (iv) Realization of greater measure of Social Justice; (v) Greater Industrial Efficiency; & (vi) Higher level of organizational health & efficiency

Empowerment
It means to enable, to allow or to permit. It is the process of passing the authority and responsibility down the hierarchy.

Empowering Variables
These variables help creating an empowered organization. (i) Respect & Belief in Employee (ii) Continuous Learning Programme (iii) Transparency (iv) Open Communication (v) Supportive Organization Culture (vi) Opportunity for Self Development

(vii) Latitude for bonafide error of judgment (viii) Less Hierarchy, Rules & Rigidity of Organizational structure (ix) Autonomy (x) Performance Appraisal System

Benefits of Empowerment
Self Efficacy (Believe in Ones abilities) Organizational Commitment Work Environment Satisfaction Role Satisfaction Job Involvement Engagement

Kaizen- Continuous Improvements Maruti implements 3300 improvement ideas every month Larsen & Turbo between 1992-96 Kaizen generated 2,33,000 improvement ideas Mother Dairy receives 8000 improvement ideas per annum from its 700 employees

Participation has Three Paradigms

(i) First, it means Mental & Emotional Involvement; (ii) Second, it motivates employees to contribute to achievement of organizational goals by creative suggestion and initiative; (iii) Thirdly, it encourages people to accept responsibility. They are ready to work with the organization/ manager rather than against it

Objectives of Workers Participation in Management

(i) To raise level of motivation (ii) To provide a sense of importance to workers (iii) It forges ties of understanding leading to better efforts & harmony (iv)It is a device to counter-balance powers of managers (v) It helps in solving IR problem

Forms of Participation
Collective Bargaining; Works Council- Exclusive body of Employees; Joint Management Council;& Board Representation.

Prerequisites for effective participation

Strong Trade Union Mutually Agreed Objectives Feeling of Participation at all levels Effective Consultation of workers by management Good faith Education & Training Follow up of Action & Feedback

WPM IN INDIA
TISCO Indian Railways DCM Mills Ltd Legal Provision relating to WPM: (i) IDA, 1947 Works Committees (ii) Article 43A; Directive Principles of State Policy

Management of Grievances
Dissatisfaction Complaint Grievance Forms of Grievance Factual, Imaginary & Disguised Causes of Grievance (i) Economic (ii) Work Environment (iii) Supervision (iv) Work Group (v) Misc

Effect of Grievance
1. On Production (i) Low Productivity (ii) Increased Waste (iii) Increased Cost 2. On Employee (i) Absenteeism & Attrition (ii) Reduced Level of Commitment (iii) Increase in Accidents (iv) Reduced Morale

3. On Managers (i) Strains Senior-subordinate relations (ii) Increases degree of supervisory control (iii) Increase in disciplinary action (iv) Increase in Unrest Grievance Redressal should be(i) Fair Principles of Natural Justice (ii) Representation should be permitted (iii) 3 Steps Procedure (iv) Prompt

Redressal of Grievances (ROG) in India

(i) The Industrial Employee (Standing Order) Act, 1946 is applicable where 100 or more persons are employed. The Act requires a procedure of ROG should be provided for in the Standing orders. (ii) The Factories Act, 1948 requires a welfare officer (where 500 persons are employed) to handle grievance, if any of the employees (iii) The IDA, 1947 requires a Grievance Settlement Officer in establishment employing 50 persons

Management of Positive Discipline

1. Traditional or Legal Approach - Limitation of Traditional approach 2. Positive or HRD Approach (i) Assumption of Theory Y (ii) Target the Root cause (iii) Keep Majority in view

Promotion & Development of Positive Discipline (i) Organizational Culture -Transparent & Shared one -Douglas McGregors Hot Stove Rule (ii) Behaviors Modification

-Disciplinary Action is preventive in nature -Positive approach or Self Discipline is proactive in nature -Counselling -Creating Conditions -Group Pressure -Leadership -Process of internalization

3. Holistic or Integrated Approach

Preventive than curative Aims at creating a culture of discipline where discipline is practiced as an habit Punishment as a last resort More effective in log run

Quality of Work Life (QWL) and Behavior

The workers motivation can be increased only by satisfaction of higher-order needs. They are (i) need for achievement (ii) recognition by others (iii) work itself (iv) responsibility, & (v) opportunity and advancement. The research in these areas led to a movement known as Quality of Work Life (QWL)

Walton (1975) has proposed eight categories that together make up the quality of working life. 1. Adequate and Fair Compensation 2. Safe and Healthy Working Conditions 3. Immediate opportunity to use and develop human capacities 4.Opportunity for continued growth and Security 5. Social Integration in work organization 6. Constitutionalisation in the work organization 7. Work and the total life space-late hrs etc 8. The Social Relevance of Work Life-CSR

Theory of Herrick & Maccoby (1975)

Humanization of Work This theory emphasizes on principles of (i) Security; (ii) Equity; & (iii) Democracy.

Working Condition & Work Behaviour

Working hrs Illumination, temperature & ventilation Noise reduction Fatigue Accidents Absenteeism

Organization Development and its Effect on Work Behaviour

OD is a deliberate attempt to bring about a change with the help of a catalyst to ensure the growth and vitality of the organization.

OD Techniques

1. Goal Setting is done to improve an individuals ability to set and achieve goals. 2. Team Building focuses on the group 3. TQM Targets the organization as a whole

-Job Redesign

Labour Welfare- An Investment for ER

Counselling-Guidance
Couselling /guidance is required to ensure positive ER Nature of Counselling People can Grow It is an Investment It is a Learning process It involves Confrontation Acceptance of individual as he is Its Continuous & time Consuming process Its effectiveness is determined by change in the individuals behaviour

Principles of Labour Welfare

Adequate wages CSR Efficiency Totality of Welfare Democratic Values Responsibility Accountability Timeliness Self help

Social Security
Medical Care Sickness benefit Old age pension Invalidity pension Maternity benefit Accident compensation Survivors or Dependents Claims

Social Security Legislations

Workmen's Compensation Act, 1923 The Employees State Insurance Act, 1948 The Maternity Benefit Act, 1961 The Employees Provident Funds & Miscellaneous Provisions Act, 1952