Compensation Management

Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness.

 Compensation is the remuneration received by an

employee in return for his/her contribution to the organization. It is an organized practice that involves providing monetary and non-monetary benefits to employees.

Difference between compensation and salary

Compensation is your total gross earnings (salary) plus
your benefits a company gives you. Salary is your pay alone, figured annually, monthly, biweekly, hourly, or whatever.

Some employers use these terms interchangeably. They may tell you that a job pays $50,000 a year salary plus competitive benefits, which is the same thing as your total compensation package.

 Is
Compensation = My Inputs and Contributions

 ESSENTIALS OF AN EQUITABLE AND IDEAL

COMPENSATION AND REWARDS SYSTEMS

In order to understand the essentials of an equitable and

ideal compensation system, it will be necessary to consider the following factors, on which the ideal compensation system shall be heavily depending upon:

 Demand and Supply position:

Each job demands certain skills, personal qualities and
technical education, experience to perform the job. If the demand is more and supply less, then naturally the compensation payable will be high and vice versa.

 Nature of Business: If the product or service is having the nature of yielding

high profits, naturally the compensation paid is relatively higher than what is paid for in other low profit yielding business. For example, compensation paid to employees in companies like Reliance Industries Ltd., Bajaj auto limited, Maruti Udyog Ltd. Would be definitely high as compared to other industries since these are supposed to be high profit earning industries and as such capable of paying a high and handsome compensation.

 Size of Business:
Large organizations like multinational companies pay higher compensation than small industries

4. Government Rules: In India, there are state and central acts for minimizing
the disparity in wages and levels. For example, the Minimum Wages Act. Similarly, for providing social security benefits, payment of gratuity, provident fund, etc. are mandatory for employer falling under that category. For better working conditions, the factories act lays down many provisions. Various laws are available to protect the interest of workers.

 Current State of industry:

Many units producing the similar product form an
industry. It is a rule that different units falling under the industry follow the current wage level in the industry. Similarly, the pattern of payment i.e. components of the pay package is similar with little variation among these units.

 1. The compensation should be in direct proportion to the

efficiency and results. A worker with higher efficiency should be paid higher. 2. The system should be fair to both, the employer and the employee. 3. The employees should be assured of a guaranteed minimum wage at a satisfactory level irrespective of the work done by him.

CHARACTERISTICS OF GOOD COMPENSATIN SYSTEM

 4.The skilled employees should be paid more as

compared to the unskilled employees. Skilled employees are to be compensated for the efforts put in by them to acquire the skill. 5. The system should ensure equal pay for equal work. 6. The system should be flexible to allow necessary changes, which may arise from time to time. 7. It should minimizes employee turnover, absenteeism and late attendance. 8. It should be clearly communicated to all the employees. It should be ensured that the employees have understood it properly.

Workers Compensation

 Types of Compensation
Compensation provided to employees can direct in the form of monetary benefits and/or indirect in the form of non-monetary benefits. Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the employees in return for their services. If the compensation offered is effectively managed, it contributes to high organizational productivity.

 Direct compensation refers to monetary benefits offered

and provided to employees in return of the services they provide to the organization. The monetary benefits include basic salary, house rent allowance, leave travel allowance, medical reimbursements, Conveyance, special allowances, bonus, Pf/Gratuity, etc. They are given at a regular interval at a definite time.

Special allowance

Basic salary Direct compensation

Bonus

House rent Allowance

Leave travel allowances

 Indirect compensation refers to non-monetary benefits

offered and provided to employees for the services provided by them to the organization. They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday Homes.

Over time policy

Leave policy

Hospitalization

Flexible timings

Indirect compensation

insurance

Holiday homes
Retirement benefits

Leave travel

 Need of Compensation Management A good compensation package is important to motivate the

employees to increase the organizational productivity.

Unless compensation is provided no one will come and

work for the organization. Thus, compensation helps in running an organization effectively and accomplishing its goals. employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose. organization to attract and sustain the best talent. The compensation package should be as per industry standards.

Salary is just a part of the compensation system, the

The most competitive compensation will help the

CONCEPT OF WAGE & SALARY ADMINISTRATION

 Wage & Salary Administration-Introduction

As money is the prime need for human beings to meet
their basic needs, everyone tries to earn as much money as possible A clerk earning less than a driver may have a grievance, but when he earns less than another clerk of comparable qualifications and experience he will show his unhappiness more bitterly. This shows that people have the tendency to compare themselves with others who are in a similar profession and/or with similar qualifications

Definition of Wages & Salary

Base wages and salaries are defined as the hourly, weekly and monthly pay that employees receive for their work in and Organization

 Purpose of Wage & Salary

Attracting talented resources Retaining and motivating employees Financial Management Legal Requirements

 Factors influencing wage and salary

structure and administration Trade unions bargaining power Job requirements Managerial attitudes Levels of skills available in the market

 Concepts of Different Wages MINIMUM WAGES

It is amount of remuneration, which is just sufficient to enable an average worker to fulfill all his obligations. It is applicable to workers across the country and is governed by the Minimum Wages Act 1948 The law states that an employer who cannot pay the minimum wage has no right to engage labour and no justification to run a firm The current minimum wage in India is Rs.115 per day to all the workers in scheduled employment It is revised every 5 yrs

 Concepts of Different Wages FAIR WAGES

Workers performing work of equal skills, difficulty or unpleasantness should receive equal or fair wages Fair wage should be related to the productivity of the labour It should match the prevailing rates of wages in the same or neighboring localities It should reflect the level of national income and its distribution

 Concepts of Different Wages LIVING WAGES Living wages should enable the male earner to

provide for himself and his family, not only the bare essentials of food, clothing and shelter, but also a measure of frugal comfort including: Education for the children Protection against ill-health A Measure of insurance against the more important misfortunes including old age

Wage payment System

Wage Payment Systems are the different methods

adopted by organizations by which they are remunerating labour. There exist several systems of employee wage payment and incentives, which can be classified as

 Time Rate System: Under this system, the worker is paid by the hour, day, week, or month. High Wage plan: Under this plan a worker is paid a wage rate which is substantially higher than the rate prevailing in the area or in the industry. In return, he is expected to maintain a very high level of performance, both quantitative and qualitative. Measured day work : According to this method the hourly rate of the time worker consists of two parts viz, fixed and variable. The fixed element is based on the nature of the job i.e. the rate for this part is fixed on the basis of job requirements. The variable portion varies for each worker depending upon his merit rating and the cost-of-living index.

 Payment by Results Piece work

Straight piecework system : The wages of the worker

depend upon his output and it is in fact independent of the time taken by him. Differential piece work system: This system provide for higher rewards to more efficient workers. For different levels of output below and above the standard, different piece rates are applicable.

 incentive wage plan

Definition A system related to employee wages where additional pay is allotted for on the job performance that has exceeded standard levels.

 Wage program where wages rise with productivity

increases above an established standard. Individual incentive wage plans are based on the performance of the individual employee, while group incentive plans are based on the performance of the work group, with individual members receiving a respective proportion of the pay allocated

Five characteristics of well designed employee incentive wage plan

The plan provides substantial financial awards to

key employees. A potential bonus equal to at least ten to thirty percent of annual compensation is necessary to motivate an employee to modify performance. Performance standards are specific. There must be determinable performance standards such as certain company net income or revenue levels.

 Performance standards are tied directly to

increase in the company's value. As the key

Part of the bonus is deferred and subject to

employee achieves measurable objective standards, the net income of the company increases. Put another way, unless the company's net income increases, the key employee does not receive a bonus.

vesting. This characteristic of incentive plans is commonly

referred to as "golden handcuffs." If the employee severs his employment before he is "fully vested," he forfeits at least part of the deferred compensation.

The plan is communicated in writing to key employees. In order to be successful, key employees
must understand exactly how the plan works. The plan must be simple, easy to read, communicated face-toface to employees with advisors present to answer any questions and contain a summary for easy reference.

JOB EVALATION

 Job evaluation is the process of systematically

determining a relative internal value of a job in an organization. In all cases the idea is to evaluate the job, not the person doing it. Job evaluation is the process of determining the worth of one job in relation to that of the other jobs in a company so that a fair and equitable wage and salary system can be established.

Job Evaluation is a technique to rank jobs in an organization on the basis of the duties and responsibilities assigned to the job. The job evaluation process results in a job being assigned to a pay grade. The pay grade is associated with a pay range that is defined by a minimum and a maximum pay rate

Job evaluation plans have been in use for approximately 75 years in the public and private sectors. There are many variations to the design a job evaluation plan. However, they all basically follow the same approach, which is to value each job in a defined group of jobs based on a common set of generic factors.

The first set of decisions that an organization is required to make when installing a job evaluation plan is to determine which jobs in the organization will be covered by the plan and what factors will be used in the job evaluation process.

 Job evaluation is a process of determining the relative

worth of a job. It is a process which is helpful even for framing compensation plans by the personnel manager. Job evaluation as a process is advantageous to a company in many ways:

 Job evaluation means systematically determining relative

worth of jobs to create job structure. An attempt to identify inputs that are most valuable to the organization & to develop job hierarchy based on which jobs have more or less of those dimensions

A survey of British Institute of management indicated the following reasons for its use: To reduce layout turnover, To increase output, To increase morale, To reduce loss of time due to wage negotiation and disputes, To reduce complaints regarding wages.

Steps in Job Evaluation

Thorough examination of the job, Preparation of job analysis to set out the requirements of
the job under various factor headings, Comparison of one Job with another, Arrangement of jobs in a progression, Relating the progression of jobs to a money scale.

 Reduction in inequalities in salary

structure

It is found that people and their motivation is dependent upon how well they are being paid. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced.

 Specialization
Because of division of labour and thereby specialization, a large number of enterprises have got hundred jobs and many employees to perform them. Therefore, an attempt should be made to define a job and thereby fix salaries for it. This is possible only through job evaluation

 Helps in selection of employees

The job evaluation information can be helpful at the time of selection of candidates. The factors that are determined for job evaluation can be taken into account while selecting the employees.

 Harmonious relationship between employees

and manager

Through job evaluation, harmonious and congenial relations can be maintained between employees and management, so that all kinds of salaries controversies can be minimized.

Standardization

The process of determining the salary differentials for

different jobs become standardized through job evaluation. This helps in bringing uniformity into salary structure

 Relevance of new jobs

Through job evaluation, one can understand the relative value of new jobs in a concern.

 According to Kimball and Kimball, Job evaluation

represents an effort to determine the relative value of every job in a plant and to determine what the fair basic wage for such a job should be. Thus, job evaluation is different from performance appraisal. In job evaluation, worth of a job is calculated while in performance appraisal, the worth of employee is rated.

Job Evaluation Methods

 Ranking method:
Raters examine the description of each job being evaluated and arrange the jobs in order according to their value to the company. This method requires a committee typically composed of both management and employee representative to arrange job in a simple rank order from highest to lowest

 The committee members merely compare two jobs and

judge which one is more important, or more difficult to perform. Then they compare the other job with the first two, and so on until all the jobs have been evaluated and ranked.

 Classification method:
A job evaluation method by which a number of classes or grades are defined to describe a group of jobs is known as Classification method. The classifications are created by identifying some common denominator skills, knowledge, responsibilities with the desired goal being the criterion of a number of distinct classes or grades of jobs.

 . Factor comparison method:

Raters need not keep the entire job in mind as they

evaluate; instead, they make decisions on separate aspects, or factors, of the job. A basic underlying assumption is that there are five universal job factors: (1) Mental Requirements, (2) Skills, (3) Physical Requirements, (4) Responsibilities, and (5) Working conditions

 The committee first rank each of the selected benchmark

jobs on the relative degree of difficulty for each of the five factors. Then, the committee allocates the total pay rates for each job to each factor based on the importance of the respective factor to the job. A job comparison scale, reflecting rankings and money allocations, is developed next. The raters compare each job, factor by factor, with those appearing on the job comparison scale. Then, they place the jobs on the chart in an appropriate position.

 Point method:

Raters assign numerical values to specific job

components, and the sum of these values provides a quantitative assessment of a jobs relative worth. Next, the analysts select and define the factors to be used in measuring job value and which become the standards used for the evaluation of jobs. Education, experience, job knowledge, mental effort, physical effort, responsibility, and working conditions are examples of factors typically used.

Advantages of job Evaluation Method

According to ILO publication job evaluation enjoys the following advantages: Job Evaluation is logical or objective method of ranking jobs relative to one another. It may help in removing inequalities in existing wage structure in maintaining sound and consistent wage differentials in a plant or industry. This method simplifies discussion of wage demands and enables differentials in wages to be explained and justified. Establishment of clear negotiation. This method may lead to greater uniformity in wage rates , thus simplifying wage administration.

Limitations of Job Evaluation: Job Evaluation alone cannot establish a wage scale. For wage fixation, we need to take into consideration statutory requirements, like Minimum Wages Act, 1948. Similarly, other factors of wage fixation like, capacity to pay, Inter industry wage variation, Inter regional wage variation, Collective bargaining agreement, if any also need to be given importance. Job evaluation is highly subjective ( being based on judgmental estimate). Similarly, it can not take into account cyclical effect of market value of occupations

Performance linked Pay

Performance-related pay is money paid to someone relating to how well he or she works at the workplace.

 Business theorist Frederick Winslow Taylor was a great

supporter of this method of payment, which is often referred to as PRP. He believed money was the main incentive for increased productivity and introducing the widely used concept of 'piece work

 Standards-based methods have been used for centuries

among commission-based sales staff: They are paid more for selling more, and low performers do not earn enough to make keeping the job worthwhile which can reduce fears of favoritism and make the employer's as well as employees expectations clear.

Labour Welfare
Welfare implies providing good working conditions proper lighting, cleanliness, low noise, reasonable amenities. The need for providing such services and facilities arise from the social responsibility of industries, a a desire for upholding values and a concern for employees.

 The Oxford Dictionary defines labour welfare as efforts to

make life worth living for workmen. The report of the committee on labour welfare set up by the Government of India in 1969 refers to welfare as a broad concept, a condition of well being. It suggests the measures which promote the physical, psychological and general well being of the working population. The ILO defines labour welfare as such services, facilities and amenities as adequate canteens, rest and recreation facilities, arrangements for travel to and from work and for the accommodation of workers employed at a distance from their houses, and such other services, amenities and facilities as contribute to improve the conditions under which workers are employed.

 Labour welfare have their origin either in some statute

formed by the state or in some local custom or in a collective agreement or in the employers agreement or in the employers own initiative. Today welfare has been generally accepted by the employers. Each employer depending on his priorities give s varying degrees of importance to labour welfare.

 IMPORTANCE OF LABOUR WELFARE IN INDIA

Compared to other countries, India has much greater need and importance of labor welfare work. Such a condition is caused by certain deficiencies in Indian labor force that are not found in its counterpart in other countries. It is these defects of deficiencies that increase the importance of labor welfare activity in the country. Briefly, the following are the reasons why labor welfare work in India assumes greater importance than in other countries.

LACK OF STRONG LABOUR UNION MOVEMENT: In India, even today the workers are no united into a class. Keeping in view the numbers, labor Union movement is still in its infancy. Even in the labor union that does exist, there is a lack of enlightened leadership, and there is no unity between these unions themselves. In absence of properly organized labor Union the workers can neither, place their demands effectively before the employer, nor can they think clearly and systematically of their own interests. As this is force lacking in India, it is essential that the welfare of laborers in the country be efficiently looked after by the employers and the Government.

ILLITERACY:

As compared with other countries, the percentage of educated workers is very low, most of them being illiterate. Consequently, they are not in a position to receive advanced industrial training, understand the problems in industries their own interests and those of nation as a whole. This can prove a source of harm not only to the workers but also to the country. Hence efficient, and become responsible citizens of the country.

LOW LEVEL OF HEALTH AND NUTRITION: The Indian worker as compared with his counterpart in most European countries is unhealthy and ill fed. This shows a definite affect over the production potential.

EXTREME POVERTY: The percentage of people under the poverty line in our country is comparatively high than other countries. So the standard of living is very low. An Indian workers is unable to provide a healthy living for his family

Scope of Labour Welfare

The subject of Welfare Facilities is fairly wide and is not

limited to any one country, one region, one industry or occupation. The scope Welfare Facilities has been described by writers and institutions of different shades in different ways and from different angles.

 Welfare Facilities, by its very nature, must necessarily be

elastic, bearing a some what different interpretation in one country from another, according to different social customs, the degree of industrialization and educational development of the workers.

Basic Features:

On the basis of various definitions the basic characteristics of labour welfare are:-

It is the work which is usually undertaken within the

premises or in the vicinity of the under takings for the benefit of the employees and the members of their families.

 The work generally include those items of welfare which

are over and above what is provided by statutory provisions or required by the custom of the industry or what the employees except as a result of a contract of service from the employers.

The purpose of providing welfare amenities is to bring

about the development of the whole personality of the worker - his social, psychological, economic, moral, cultural and intellectual development to make him a good worker, a good member of the family.

 These facilities may be provided voluntarily by

progressive and enlightened entrepreneurs at their own accord out of their realization of social responsibility available or these may be undertaken by the Government or Trade unions if they have the necessary funds for the purpose.

 Labour Welfare is a very broad term covering social

security and such other activities as medical aid, crches, canteens, recreation, housing, adult education, arrangements for the transport of labour to and from the work place.

Objectives of Labour Welfare Activities:

Partly humanitarian i.e., to enable workers to enjoy a fuller

and richer life. Partly economic i.e., to improved the efficiency of the workers and also partly civic i.e., to develop among them a sense of responsibility an dignity and thus make them worthy citizens of the nation.

 Another object of labour welfare is to fulfill the future needs and

aspirations of Labour. In view of above discussions it is clear that labour welfare measures are to be inevitably under-taken by the employers to reduce absenteeism and labour turn over and to increase production. Therefore in the final analysis Labour Welfare Services should:

Enable the workers to live a richer and more satisfactory life.

Contribute to the productivity of labour and efficiency of the enterprise.

Raise the standard of living of workers by indirectly reducing the
burden.

Need for Labour Welfare:

The need for the Labour welfare arises from the very
nature of industrial system which is characterized by two basic factors: one the conditions under which work is carried on are not congenial for the health and second when a labourer joins an industry has to work in an entirely strange atmosphere, which create problems of adjustments.

 When a worker, who infact comes to work in a factory

has to work and live in unhealthy, congested factories. With no facilities. To escape from the tiring conditions of his tedious and tiresome job, he absents himself, becomes irregular and often undisciplined. Hence the need for providing welfare Services arises.

 The working conditions should be such as to safeguard his

health and protect him against occupational hazards. The worker should, also be equipped with necessary technical training and a certain level of general education because of the high rate of illiteracy among the workers. The facilities would also help in decreasing the number of industrial accidents and increasing the workers efficiency

 Therefore proper Sitting arrangement for employees who

are required to work in standing position in order that may take short rests in the course of their work.

First-aid boxes or cup-boards equipped with the

prescribed contents - at least one for every 150 workers.

Ambulance rooms-for 500 or more workers. The

ambulance room shall be of prescribed size, having equipments and medical and nursing staff as prescribed which shall be made readily available during all working hours.

 A canteen- for 250 or more workers. The canteen shall be suitably

located and sufficiently lighted and ventilated. It shall be of the prescribed size, equipped, with necessary furniture, utensils etc., and operated on non-profit basis.

Rest rooms or shelters and lunch rooms with provision for drinking
water - 150 or more workers are there. Crches - if 30 or more women workers are employed Crches shall be sufficiently lighted and ventilated and maintained in a clean and sanitary condition under the charge of women trained in child and infant care. Provision for wash room and supply of milk and refreshment for children and facilities for feeding of children at necessary intervals by their mother shall be made as per rules by State Government.

 If 500 or more workers are there then a Welfare Officer

shall be employed. The scale of standards paternity to various welfare facilities are laid down by the state Government.

 Classification of Welfare Activities Statutory:

as prescribed by legal norms and legislations. Sanitary and hygiene facilities Rest rooms Medical facilities Crches Drinking Water

The welfare norms to be fulfilled compulsory by employer

 Non-Statutory:
The welfare measures provided by employer in order to
maintain good human touch or pressure by unions or due to his concern to workers or to avoid takes for due to many more reasons there are voluntary in the aspect of employer.

Transport facilities Educational facilities Saving facilities Distress relief and cash benefits

Basic Principles of successful Labor Welfare Programs

1. Workers should always be paid their expected salaries 2. A nurturing and responsible environment must be created by the industrial sector. 3. The industry should aim toward increasing the overall efficiency of its workforce. Efficiency is the key to a successful business. Efficiency can be increased by the industry by ensuring that its workers are provided with proper housing, education, training, and a well balanced diet.

 4. Industrial labour must be treated like human beings with

wants and needs. Labour in an industry must be respected as people, and not used as tools. 5. Everyone in the industry should equally be aware of and accept the concept of labour welfare. 6. Welfare should not only encompass a person's work life, but also his/her life at home, educational institution, and community. 7. Individuals involved in the creation and implementation of welfare programs must use democratic values to make their decisions. The voice of the majority must be considered. Furthermore, workers must be involved in making decisions on welfare management.

 Everyone involved in welfare management must accept the

full responsibility and implement it. Labour unions, together must be involved with the senior management, must take up the responsibility of labour welfare. In addition, various committees must be assigned smaller tasks and must be held responsible for 9. Labor welfare programmes must be constantly reviewed and. All the parties involved must submit to the periodic reviews and offer their honest opinions. 10. Welfare schemes must be carried out at the correct time. Timeliness is extremely important. 11. Welfare schemes must be aimed at simple-minded individuals. All individuals receiving welfare must be comfortable with the scheme and must be able to help themselves if need arises.

Employee Safety and Security

Keeping employees safe is an important part of managing a business. The meaning of the term social security varies from country to country. In socialist countries, the nations goal is complete protection of every citizen. In capitalist countries, a measure of protection is afforded to the needy citizen in consistence with resources of state. According to the social security (Minimum Standards) convention (No. 102) adopted by by ILO in 1952, the following are the nine components of social security:

1. 2. 3. 4. 5. 6. 7. 8. 9.

Medical Care Sickness benefit Unemployment benefit Old age benefit Employment injury benefit Family benefit Maternity benefit Invalidity benefit Survivors benefit

 Social security is primarily a social insurance program

providing social protection or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to: social insurance, where people receive benefits or services in recognition of contributions to an insurance program. These services typically include provision for retirement pensions, disability insurance, survivor benefits and unemployment insurance.

 income maintenancemainly the distribution of cash in

the event of interruption of employment, including retirement, disability and unemployment services provided by administrations responsible for social security. In different countries this may include medical care, aspects of social work and even industrial relations.

 Employee Health and Safety

For smooth functioning of an organization,

the employer has to ensure safety and security of his employees. Health and safety form an integral part of work environment. A work environment should enhance the well being of employees and thus should be accident free

 The terms health, safety and security are closely

related to each other. Health is the general state of well being. It not only includes physical well being, but also emotional and mental well being. Safety refers to the act of protecting the physical well being of an employee. It will include the risk of accidents caused due to machinery, fire or diseases. Security refers to protecting facilities and equipments from unauthorized access and protecting employees while they are in work

 In organizations the responsibility of employee

health and safety falls on the supervisors or HR manager. An HR manager can help in coordinating safety programs, making employees aware about the health and safety policy of the company, conduct formal safety training, etc. The supervisors and departmental heads are responsible for maintaining safe working conditions. Responsibilities of managers:

 Monitor health and safety of employees Coach employees to be safety conscious Investigate accidents Communicate about safety policy to employees Responsibilities of supervisors/departmental heads: Provide technical training regarding prevention of accidents

Coordinate health and safety programs

Train employees on handling facilities an equipments Develop safety reporting systems

 Social security legislations in India Social Security for employees is a concept which
over time has gained importance in the industrialized countries. Broadly, it can be defined as measures providing protection to working class against contingencies like retirement, resignation, retrenchment, maternity, old age, unemployment, death, disablement and other similar conditions.

 With reference to India, the Constitution

levies responsibility on the State to provide social security to citizens of the country. The State, here, discharges duty as an agent of the society in order to help those who are in adverse situations or otherwise needs protection owing to above mentioned contingencies.

 Drawing from the Constitution of India and ILO

Convention on Social Security1 (ratified by India in 1964), some of the legislations that have been enacted for social security are Employees State Insurance Act, 1948, Workmens Compensation Act, 1923, Employees Provident Fund and Miscellaneous Provisions Act, 1952, Maternity Benefit Act, 1961, Payment of Gratuity Act, 1972, etc. A social security division has also been set up under the Ministry of Labour and Employment which mainly focuses on framing policies for social security for the workers of organized sector.

ESI Employees State Insurance Scheme of India, is a

multidimensional social security system tailored to provide socio-economic protection to worker population and their dependants covered under the scheme. Besides full medical care for self and dependants, that is admissible from day one of insurable employment, the insured persons are also entitled to a variety of cash benefits in times of physical distress due to sickness, temporary or permanent disablement etc. resulting in loss of earning capacity, the confinement in respect of insured women, dependants of insured persons who die in industrial accidents or because of employment injury or occupational hazard are entitled to a monthly pension called the dependants benefit.

 ESIC is the only health insurance scheme that offers full

medical care to workers and their dependants without any ceiling on individual expenditure. ESICESIC offers a special package of full medical care to retired/disabled insured persons for self and spouse for a nominal contribution of Rs. 120/- per annum.

ESIC is the most affordable social security system with

the lowest contribution rate for multiple health insurance benefits.

 Workmens Compensation Act, 1923

& Workmens Compensation Rules, 1924
Object: The objective of this Act is that in the case of an
employment injury compensation be provided to the injured workman and in case of his death to his dependants.

 Employer to pay compensation: In case a

personal injury is caused to a workman by accident arising out of and in the course of his employment, his employer is liable to pay compensation in accordance with the provision of the Act within 30 days from the date when it fell due otherwise he would also be liable to pay interest and penalty.

 Employer to pay compensation: In case a

personal injury is caused to a workman by accident arising out of and in the course of his employment, his employer is liable to pay compensation in accordance with the provision of the Act within 30 days from the date when it fell due otherwise he would also be liable to pay interest and penalty.

 When employer is not liable: In case the disablement of workman is three or less
days; and when the injury is caused due to influence of drink or drug taken by the workman or upon his willful disobedience to obey safety rules or removal of safety guards by him.

 The concept of social security is based on the ideals of

social dignity and social justice. Every worker wants to be on certain not only of his next meals but also of his subsistence for the rest of his life and also subsistence of his dependents as well With the need of social security which is an element of protection and stability in modern life the employees provident fund and miscellaneous provision act 1952 come into existence

 The employees P/F and Miscellaneous provision act

which have come into force from ist nov 1952 is a piece of social security enactment designed to provide for a scheme to make provisions for the future of industrial workers and their dependents in case of their retirement and in the case of their premature death.

 The Act was initially made applicable to those

establishments which have employed 50 or above but later on number was reduced to only 20 and above employees

Maternity Benefits Act 1961

Under the Maternity Benefits Act of 1961, employees entitled to maternity benefits at the rate of their average daily wage for the period of their absence, for a maximum period of 12 weeks (6 weeks before delivery and 6 weeks after). one can only claim this compensation though if she has worked at least 80 days for her employer in the last 12 months

 The average daily wage means the average of their

wages during the three month period immediately before their maternity leave starts. If one miscarry, she is entitled to six weeks of leave and wages.

 Gratuity Act 1972

The Payment of Gratuity Act, 1972 applies to factories and other establishments employing ten or more persons. On completion of five years service, Once Act applies, it continues to apply even if employment strength falls below

 Applicability Every factory (as defined in Factories Act), mine, oilfield,

plantation, port and railway.

Every shop or establishment to which Shops &

Establishment Act of a State applies in which 10 or more persons are employed at any time during the year end.

Any establishment employing 10 or more persons as

may be notified by the Central Government.

Once Act applies, it continues to apply even if

employment strength falls below

 Eligibility Any person employed on wages/salary. At the time of retirement or resignation or on

superannuation, an employee should have rendered continuous service of not less than five years,

In case of death or disablement, the gratuity is

payable, even if he has not completed 5 years of service.

 Apart from above mentioned enactments, since

the last decade the government has initialized efforts to extend the benefits to the unorganized sector too. Legislative enactments like the National Rural Employment Guarantee Act, 2005, Unorganized Sector Workers Social Security Act, 2008 and the Domestic Workers (Registration, social security and welfare) Act, 2008 are examples of the same.

 The National rural employment guarantee Act 2005 aim at curbing unemployment or unproductive
employment in rural areas. It focuses on enhancing livelihood security to rural people, as it guarantees productive wage employment for at least 100 days in a year. The Fiscal budget, this year, has also hiked the allocation to its job guarantee scheme NREGA by 144% and also the beneficiaries under the scheme would, henceforth, be entitled for a minimum wage of Rs. 100 per day.2

 The Mahatma Gandhi National Rural

Employment Guarantee ActThe Mahatma Gandhi National Rural Employment Guarantee Act aims at enhancing the livelihood security of people in rural areas by guaranteeing hundred days of wage-employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work.

 Occupational safety and health Occupational health and safety is a cross-disciplinary

area concerned with protecting the safety, health and welfare of people engaged in work or employment. The goal of all occupational health and safety programs is to foster a safe work environment.1 As a secondary effect, it may also protect co-workers, family members, employers, customers, suppliers, nearby communities, and other members of the public who are impacted by the workplace environment. It may involve interactions among many subject areas, including occupational medicine, occupational (or industrial) hygiene, public health, safety engineering, chemistry, health physics.

 DEFINITION Since 1950, the International Labour Organization (ILO) and the
World Health Organization (WHO) have shared a common definition of occupational health. It was adopted by the Joint ILO/WHO Committee on Occupational Health at its first session in 1950 and revised at its twelfth session in 1995. The definition reads: "Occupational health should aim at: the promotion and maintenance of the highest degree of physical, mental and social well-being of workers in all occupations; the prevention amongst workers of departures from health caused by their working conditions; the protection of workers in their employment from risks resulting from factors adverse to health; the placing and maintenance of the worker in an occupational environment adapted to his physiological and psychological capabilities; and, to summarize, the adaptation of work to man and of each man to his job". This standard is based on the methodology known as Plan-Do-Check-Act (PDCA)

 EMPLOYEE MORALE AND JOB

SATISFACTION

MORALE
The state of the spirits of a person or group as exhibited by confidence, cheerfulness, discipline, and willingness to perform assigned tasks.

 Morale is an imprecise term. It is related to the moral qualities of the

individual (indeed, in earlier times it was often spelt moral) and may be defined, in the words of Irvin L. Child, as pertain[ing] to [the individuals'] efforts to enhance the effectiveness of the group in accomplishing the task in hand. This definition links the morale of the individual with that of the larger organization. The relationship between the two can be described as follows: unless the individual is reasonably content he will not willingly contribute to the unit. He might mutiny or desert, but is more likely simply to fail to work wholeheartedly towards the goals of the group. High group morale, or cohesion, is the product in large part of good morale experienced by members of that unit. The state of morale of a larger formation such as an army is the product of the cohesion of its constituent units. The possession by an individual of morale sufficiently high that a soldier is willing to engage in combat might be described as fighting spirit.

 The Definition of Employee Morale No matter how smart, talented and experienced
your employees are, if they are not happy with their jobs, their work will suffer. Keeping employee morale high is important because it will abet your company's success.

 Definition Description of the emotions, attitude, satisfaction, and

overall outlook of employees during their time in a workplace environment. Part of effective productivity is thought to be directly related to the morale of the employees. Employees that are happy and positive at work are said to have positive or high employee morale. Companies that maintain employees who are dissatisfied and negative about their work environment are said to have negative or low employee morale.

 Morale is basically a feeling of passion and enthusiasm.

When you want to shine in whatever you are doing, it can be said with certainty that you possess a high morale. Morale is the mental state or attitude of individuals and groups, which determines their readiness to cooperate.

 Positive Employee Morale Benefits Your

Business

Compared to employees who are motivated, disengaged workers are less efficient, miss more workdays and cost organizations thousands of dollars in lost productivity. Keeping employee morale high is one of the best things you can do to instill loyalty and maintain a productive workplace.

 Morale affects how motivated your employees are to

work for you, suggests how much they will do while on shift, and will influence how long they will stay on staff. As a manager, much of the mood within the organization is in your hands. Make sure you do your part to keep morale levels high: First, ensure your people clearly understand their role, their impact on customers, and how they bring value to the organization. Managers must deliver good training and continuous feedback to ensure this is achieved. This critical foundation is vital for getting employees to feel connected to the company.

 Motivate with your own example. Show good character, and

conduct yourself and your business in a manner you want imitated. Demonstrate a positive attitude to serve as an example of optimism and achievement. In other words, walk the talk. Set a high standard and show commitment. When it comes to things like quality and customer service, act in a manner that's consistent with what you demand from your staff. Communicate. Tell employees your objectives for the company and promptly share news that affects the organization. Let staff know clearly what your expectations are, and explain the reasoning behind certain rules or rule changes. Ask workers directly what motivates them, and get their feedback on how to handle staff issues.

 Involve employees as equal members of your team. Make them feel

valued and connected to your cause by asking for their feedback and giving them room to make decisions. Challenge your workforce with new opportunities to use and develop their skills. Consult employees before implementing policies that will affect them. Instead of handing down rules like a dictator, allow staff to give input into creating their own environment. Acknowledge and appreciate staff. Recognize small successes with kind and encouraging words for a job well done. You can reinforce commendable behaviour further by giving inexpensive rewards like thank you cards, or larger ones like gift certificates.

 Provide adequate tools and staffing levels to get the job done. Don't
be so frugal as to create an environment where workers are overburdened or otherwise restricted from giving their best effort. If you do, they'll feel they're wasting time and energy on a futile effort. Make sure you promote policies that support staff in taking action to resolve issues. Respect team members as individuals and as professionals. Care about your employees, not just about your business. Show an interest in their personal lives and get to know what's important to them, so you can help them achieve their goals. Respond to problems, concerns and questions. Leaving things unaddressed tells employees you don't care.

 Align your business activities with positive social values. Workers

respond favourably when corporate actions reflect responsible community or environmental practices. You might also consider donating equipment or sponsoring group volunteer projects or fundraising activities. Be fair about discipline. Address performance issues privately, and apply discipline consistently, without favouritism. Most importantly, be an effective leader. Be honest, fair, and accessible; interact with staff frequently; and display a positive demeanour whenever possible. Show your employees that yours is a workplace to be proud of, where great things can happen, and that their efforts are a major factor in its success.

 What Affects the Morale of Employees in a

Business? Organization itself is the primary factor that affects the morale of its employees. The organization influences the workers attitude about their jobs. The public reputation of an organization may build up for better or worse depending upon the attitude of its employees. The nature of work, the worker is expected to perform also affects his attitude towards the job. This ultimately affects his morale.

 If the employee is only expected to perform routine jobs,

he will feel bored or alienated. Repetition of the same task again and again makes the working situation worse for the employees. Another factor is the large unfriendly organizational structure. Sometimes, if the employee feels that he is just a cog in the machine instead of a person, his morale will automatically become very low.

 The level of satisfaction that a worker derives from his

job is another determinant of morale. If the job factors and the satisfaction they bring is perceived to be favorable by the employees their morale will tend to be higher.

The job factors include the factors such as opportunity for promotions, job security, pay and working conditions etc. If all these factors are favorable for an employee (in fact this is a rare case), their morale will be high.

 Healthy and confident persons tend to have a

high morale as compared to persons who dont possess sound mental and physical health. Your family conditions also have a lot of effect on your morale.

It is normally seen that persons who have a disturbed family life tend to be pessimists and are in the habit of picking holes in any responsibility that is entrusted upon them.

 Boosting Employee Morale Increases Productivity

The question asked by executives and managers -

"How can I motivate my employees?" is sometimes difficult to answer. Since each employee is motivated by a variety of different incentives, you need to find out what is of value for each person. Research shows that people often leave an employer because they haven't received the recognition they want, or feedback on how they are doing. With this in mind, designing a positive, employee-driven motivation program works with some of your employees, but then what do you do for the others?

 Leaders continue to look for ways to boost morale. Many

organizations feel that if you want innovative and unique ways to boost your employees morale, just ask them. Of course, employees may not want to tell employers faceto-face what they want and what they are thinking. So the employer can conduct an anonymous "morale audit," giving employees a survey to fill out. This is only one method.

 Since many employers don't have the time to write the

specific questions and survey their employees, don't know what specific questions to ask, or don't want to take the time to write, conduct, and evaluate a survey, here are seven ways I believe you can more easily boost your employees' morale:

 Get Your Employees Involved: Typically,

your employees want to get involved in their jobs and be part of the success and progress of the company for which they work. Asking your employees to set their own job goals, as well as having them suggest more efficient ways to do their jobs, is an excellent way to find out how they can manage their own jobs.

 2. Communication: Effective employee communication

can have a positive impact with pride affecting the company's productivity. Make sure your employees are included in all communications, especially in policy decisions and any changes taking place. Also, any communication that takes place with your employees requires that you listen to them. If your employees feel that they are not being listened to, negative effects will result and will impact on productivity. Listening to your employees shows that you have an interest in them.

 3. Job Satisfaction: According to The Wall Street

Journal-Career Journal.com (July 13, 2005), nearly eight of ten employees are satisfied with their jobs. Beyond achievements and getting recognition for accomplishments, three factors that contribute to employee longevity are: (1) being challenged in the work they are given, (2) given increased responsibilities for the work they do, and (3) getting training in new skills to help them complete their tasks more efficiently and give them room for promotion.

 4. Tools to Get the Job Done: In order to get

work done, and done right, you as the leader need to give your employees the skills and tools for them to complete their tasks. This includes giving them the support and the training they need. Then your employees will stay motivated.

 5. Independency/Empowerment: Sometimes knowing

when to step back and let your employees do their work is what they need. Employees want to feel that they are trusted to get their work done. They do not need to be micromanaged in everything they do. As a leader, when you delegate or assign a task to your employees, tell them what your expectations are and them let them do the work. You will find that your employees will take pride in their work when they are allowed to make some decisions on their own. They feel that they own it, especially if the decision of how to best do their job is from them.

 6. Rewards: Your employees need to be motivated to do

a great job. For this to be consistent, give your employees praise and appreciation. This should be done in front of others. Whether you give a personalized written note, a positive compliment, or other type of incentive, you need to give these to all employees to keep their motivation going. At your company staff meetings, your employees can be given the chance through a company drawing for a prize such as gift certificates to a local store or even an "Employee of the Month" special parking space. If you have weekly meetings, do this type of reward once a month. If you do not have staff meetings, consider implementing them as a way of communicating

 7. Care About Your People: Beyond the point of assigning work tasks and providing the tools
needed to complete the tasks, leaders need to look at further educating and training their talented employees. If your employees believe that their boss does not care about either the task or them, then they will not care either. The company then suffers for that.

There are some companies who have built their reputations as

companies where people want to work. This is translated into "employers of choice." Leaders knowing about motivation are able to be more effective in meeting their organizational goals through delegating and knowing that the work will get done by their employees. High employee morale increases productivity, as well as reduces employee turnover rates, decreases employee complaints, and improves job satisfaction. Company leaders need to provide the leadership to create and maintain the morale of your organization. Your impact as an executive or manager is immeasurable when it comes to motivating your employees.

Workers Participation In Management

 International Institute of Labour Studies:

WPM is the participation resulting from the practices
which increase the scope for employees share of influence in decision-making at different tiers of organizational hierarchy with concomitant (related) assumption of responsibility

 ILO: Workers participation, may broadly be

taken to cover all terms of association of workers and their representatives with the decisionmaking process, ranging from exchange of information, consultations, decisions and negotiations, to more institutionalized forms such as the presence of workers member on management or supervisory boards or even management by workers themselves (as practiced in Yugoslavia).

 The main implications of workers participation in

management as summarized by ILO:

Workers have ideas which can be useful; Workers may work more intelligently if they are
informed about the reasons for and the intention of decisions that are taken in a participative atmosphere.

Workers Participation in Management is a system of communication and consultation, either formal or informal, by which employees of an organisation are kept informed about the affairs of the undertaking and through which they express their opinion and contribute to management decisions.

 It is industrial democracy in action based on the

principles of equity, equality and voluntarism.

It is distribution of social power in industry so that it tends

to be shared among all who are engaged in the work rather than concentrated in the hands of minority.

 With the outbreak of the First World War, an acute

industrial unrest was experienced. Labour was largely regarded as a Commodity of Commerce and exploited to the maximum in England, West Germany, France and USA. The main concern of ideologists in advocating workers participation in Management was the sharing of a part of managerial power with workers

 Increased use of technology in industry

necessitated the growing co-operation of workers because of the complex operations of production. The changed view that employees are no longer servants but are equal partners in their effort to attain organisation goal. The growth of trade unions which would safeguard the interest of workers and protect them against possible exploitation by their employers

 The growing interest of the Government in the

development of industries and the welfare of the workers.

Collective Bargaining
Issues over which the interests of workers and management are competitive such as employment conditions, wage rates, working hours and the number of holidays are usual areas for collective bargaining.

 (ii) Objectives: According to Gosep, workers participation may be viewed as: An instrument for increasing the efficiency of enterprises and
establishing harmonious relations;

A device for developing social education for promoting solidarity

among workers and for tapping human talents;

A means for achieving industrial peace and harmony which leads to

higher productivity and increased production;

A humanitarian act, elevating the status of a worker in the society;

An ideological way of developing self-management and promoting

industrial democracy.

 Other objectives of WPM can be cited as: To improve the quality of working life (QWL) by allowing
the workers greater influence and involvement in work and satisfaction obtained from work; and

To secure the mutual co-operation of employees and

employers in achieving industrial peace; greater efficiency and productivity in the interest of the enterprise, the workers, the consumers and the nation.

 Problems associated with this method:

Focus of workers representatives is different from the

focus of the remaining members of the Board. Communication and subsequently relations between the workers representative and the workers suffers after the former assumes directorship.

He or she tends to become alienated from the workers.

 As a result, he or she may be less effective with the

other members of the Board in dealing with employee matters.

Because of the differences in the cultural and

educational backgrounds, and differences in behaviour and manners, such an employees representative may feel inferior to the other members, and he or she may feel suffocated. Hence, his or her role as a director may not be satisfying for either the workers or the management.

Such representatives of workers on the Board, places

them in a minority. And the decisions of the Board are arrived at on the basis of the majority vote.

 Quality Circles
A group of employees who perform similar duties and meet at periodic intervals, often with management, to discuss work-related issues and to offer suggestions and ideas for improvements, as in production methods or quality control.

 Barron's Business Dictionary: quality circle

Small groups of employees meeting on a regular basis

within an organization for the purpose of discussing and developing management issues and procedures. Quality circles are estab- lished with management approval and can be important in implementing new procedures. While results can be mixed, on the whole, management has accepted quality circles as an important organizational methodology.

 In their volume Japanese Quality Circles and Productivity, Joel E.

Ross and William C. Ross define a quality circle as "a small group of employees doing similar or related work who meet regularly to identify, analyze, and solve product-quality and production problems and to improve general operations. The circle is a relatively autonomous unit (ideally about ten workers), usually led by a supervisor or a senior worker and organized as a work unit." Employees who participate in quality circles usually receive training in formal problem-solving methodssuch as brainstorming, pareto analysis, and cause-and-effect diagramsand then are encouraged to apply these methods to either specific or general company problems. After completing an analysis, they often present their findings to management and then handle implementation of approved solutions.

 Although most commonly found in manufacturing

environments, quality circles are applicable to a wide variety of business situations and problems. They are based on two ideas: that employees can often make better suggestions for improving work processes than management; and that employees are motivated by their participation in making such improvements. Thus, implemented correctly, quality circles can help a small business reduce costs, increase productivity, and improve employee morale.

 They are formal groups. They meet at least once a week

on company time and are trained by competent persons (usually designated as facilitators) who may be personnel and industrial relations specialists trained in human factors and the basic skills of problem identification, information gathering and analysis, basic statistics, and solution generation. Quality circles are generally free to select any topic they wish (other than those related to salary and terms and conditions of work, as there are other channels through which these issues are usually considered).

Quality circle

A quality circle is a volunteer group composed of workers usually under the leadership of their supervisor (but they can elect a team leader), who are trained to identify, analyze and solve work-related problems and present their solutions to management in order to improve the performance of the organization, and motivate and enrich the work of employees. When matured, true quality circles become self-managing, having gained the confidence of management.

 The term quality circles derives from the concept of

PDCA (Plan, Do, Check, Act) circles developed by Dr. W. Edwards Deming.

 The Deming Cycle

W. Edwards Deming in the 1950's proposed that

business processes should be analyzed and measured to identify sources of variations that cause products to deviate from customer requirements. He recommended that business processes be placed in a continuous feedback loop so that managers can identify and change the parts of the process that need improvements. As a teacher, Deming created a (rather oversimplified) diagram to illustrate this continuous process, commonly known as the PDCA cycle for Plan, Do, Check, Act*:

 PLAN: Design or revise business process

components to improve results

DO: Implement the plan and measure its performance CHECK: Assess the measurements and report the
results to decision makers

ACT: Decide on changes needed to improve the

process

 successful quality circles offer a wide variety of benefits

for small businesses. For example, they serve to increase management's awareness of employee ideas, as well as employee awareness of the need for innovation within the company. Quality circles also serve to facilitate communication and increase commitment among both labor and management. In enhancing employee satisfaction through participation in decisionmaking, such initiatives may also improve a small business's ability to recruit and retain qualified employees. In addition, many companies find that quality circles further teamwork and reduce employee resistance to change. Finally, quality circles can improve a business's overall competitiveness by reducing costs, improving quality, and promoting innovation.

BACKGROUND Quality circles were originally associated with Japanese management and manufacturing techniques. The introduction of quality circles in Japan in the postwar years was inspired by the lectures of W. Edwards Deming (1900-1993), a statistician for the U.S. government

 Deming based his proposals on the experience of U.S.

firms operating under wartime industrial standards. Noting that American management had typically given line managers and engineers about 85 percent of the responsibility for quality control and line workers only about 15 percent, Deming argued that these shares should be reversed. He suggested redesigning production processes to more fully account for quality control, and continuously educating all employees in a firmfrom the top downin quality control techniques and statistical control technologies.

 Quality circles were the means by which this

continuous education was to take place for production workers. Deming predicted that if Japanese firms adopted the system of quality controls he advocated, nations around the world would be imposing import quotas on Japanese products within five years. His prediction was vindicated. Deming's ideas became very influential in Japan, and he received several prestigious awards for his contributions to the Japanese economy.

 The principles of Deming's quality circles simply moved

quality control to an earlier position in the production process. Rather than relying upon post-production inspections to catch errors and defects, quality circles attempted to prevent defects from occurring in the first place. As an added bonus, machine downtime and scrap materials that formerly occurred due to product defects were minimized. Deming's idea that improving quality could increase productivity led to the development in Japan of the Total Quality Control (TQC) concept, in which quality and productivity are viewed as two sides of a coin. TQC also required that a manufacturer's suppliers make use of quality circles.

 Total quality management Total quality management or TQM is an integrative philosophy of

management for continuously improving the quality of products and processes. 1 It is used around the world.

TQM functions on the premise that the quality of products and

processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. In other words, TQM capitalizes on the involvement of management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations. Considering the practices of TQM as discussed in six empirical studies, Cua, McKone, and Schroeder (2001) identified the nine common TQM practices as cross-functional product design, process management, supplier quality management, customer involvement, information and feedback, committed leadership, strategic planning, cross-functional training, and employee involvement.

 A core concept in implementing TQM is Demings 14

points, a set of management practices to help companies increase their quality and productivity: Create constancy of purpose for improving products and services. Adopt the new philosophy. Cease dependence on inspection to achieve quality. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier. Improve constantly and forever every process for planning, production and service. Institute training on the job.

Adopt and institute leadership. Drive out fear. Break down barriers between staff areas. Eliminate slogans, exhortations and targets for the workforce. Eliminate numerical quotas for the workforce and numerical goals for management. Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system. Institute a vigorous program of education and selfimprovement for everyone. Put everybody in the company to work accomplishing the transformation.

7 Important Principles of Total Quality Management Total Quality Management (TQM) is an approach that organizations use to improve their internal processes and increase customer satisfaction. When it is properly implemented, this style of management can lead to decreased costs related to corrective or preventative maintenance, better overall performance, and an increased number of happy and loyal customers.

 . Quality can and must be managed Many companies have wallowed in a

repetitive cycle of chaos and customer complaints. They believe that their operations are simply too large to effectively manage the level of quality. The first step in the TQM process, then, is to realize there is a problem and that it can be controlled.

 Processes, not people, are the problem If your process is causing problems, it
wont matter how many times you hire new employees or how many training sessions you put them through. Correct the process and then train your people on these new procedures.

 Dont treat symptoms, look for the cure If you just patch over the underlying
problems in the process, you will never be able to fully reach your potential. If, for example, your shipping department is falling behind, you may find that it is because of holdups in manufacturing. Go for the source to correct the problem.

 Every employee is responsible for quality Everyone in the company, from the workers on
the line to the upper management, must realize that they have an important part to play in ensuring high levels of quality in their products and services. Everyone has a customer to delight, and they must all step up and take responsibility for them.

 Quality must be measurable A quality management system is only

effective when you can quantify the results. You need to see how the process is implemented and if it is having the desired effect. This will help you set your goals for the future and ensure that every department is working toward the same result.

 Quality improvements must be

continuous Total Quality Management is not something that can be done once and then forgotten. Its not a management phase that will end after a problem has been corrected. Real improvements must occur frequently and continually in order to increase customer satisfaction and loyalty.

 7. Quality is a long-term investment Quality management is not a quick fix. You can purchase QMS
software that will help you get things started, but you should understand that real results wont occur immediately. TQM is a longterm investment, and it is designed to help you find long-term success. Before you start looking for any kind of quality management software, it is important to make sure you are capable of implementing these fundamental principles throughout the company. This kind of management style can be a huge culture change in some companies, and sometimes the shift can come with some growing pains, but if you build on a foundation of quality principles, you will be equipped to make this change and start working toward real long-term success

Quality of work life

Work is an integral part of our everyday life, It does influence the overall quality of our entire life. It should yield job satisfaction, give piece of mind, a fulfillment of having done a task, as it is expected, without any flaw, and having spent a time fruitfully, constructively and purposefully, at the end of the day it gives satisfaction and eagerness to look forward to the next day.

 Factors that effects and influences the quality of work life are:
Attitude Environment Opportunities Nature of job People Stress level Career prospects challenges Growth and development Risk involved and reward

 WHAT IS QWL?
The term refers to the favorableness or unfavourableness of a total job environment for people. QWL programs are another way in which organisations recognize their responsibility to develop jobs and working conditions that are excellent for people as well as for economic health of the organisation.

 The elements in a typical QWL program include open

communications, equitable reward systems, a concern for employee job security and satisfying careers and participation in decision making. Many early QWL efforts focus on job enrichment. In addition to improving the work system, QWL programs usually emphasise development of employee skills, the reduction of occupational stress and the development of more cooperative labour-management relations.

 Human resource departments are involved with efforts to

improve productivity through changes in employee relations. QWL means having good supervision, good working conditions, good pay and benefits and an interesting, challenging and rewarding job. High QWL is sought through an employee relations philosophy that encourages the use of QWL efforts, which are systematic attempts by an organisation to give workers greater opportunities to affect their jobs and their contributions to the organisations overall effectiveness. That is, a proactive human resource department finds ways to empower employees so that they draw on their brains and wits, usually by getting the employees more involved in the decision-making process.

 Forces For Change

A factor contributing to the problem was that the workers themselves were changing. They became educated, more affluent (partly because of the effectiveness of classical job design), and more independent. They began reaching for higher-order needs, something more than merely earning their bread. Employers now had two reasons for re-designing jobs and organisations for a better QWL:

Classical design originally gave inadequate attention to human

needs. The needs and aspirations of workers themselves were changing.

 One option was to re-design jobs to have the attributes

desired by people, and re-design organizations to have the environment desired by the people. This approach seeks to improve QWL. There is a need to give workers more of a challenge, more of a whole task, more opportunity to use their ideas. Close attention to QWL provides a more humanized work environment. It attempts to serve the higher-order needs of workers as well as their more basic needs. It seeks to employ the higher skills of workers and to provide an environment that encourages them to improve their skills.

 The idea is that human resources should be developed

and not simply used. Further, the work should not have excessively negative conditions. It should not put workers under undue stress. It should not damage or degrade their humanness. It should not be threatening or unduly dangerous. Finally, it should contribute to, or at least leave unimpaired, workers abilities to perform in other life roles, such as citizen, spouse and parent. That is, work should contribute to general social advancement.

 Quality of work life (QWL) is a general

concept that refers to several aspects of the job, including:
Management and supervisory style Freedom and autonomy to make decisions on the job Job safety Satisfactory working hours Meaningful tasks

 Forces For Change

A factor contributing to the problem was that the workers
themselves were changing. They became educated, more affluent (partly because of the effectiveness of classical job design), and more independent. They began reaching for higher-order needs, something more than merely earning their bread.

 Employers now had two reasons for re-designing jobs

and organisations for a better QWL:

Classical design originally gave inadequate attention to

human needs.

The needs and aspirations of workers themselves were

changing.

 What is Flexitime?
Flexitime is a scheme that lets you choose when you
start and finish work, within certain limits agreed with your employer.

 Many types of flexible schedules now exist. A flexitime

arrangement may involve a detailed formal document spelling out rules and procedures, or it may be an informal agreement between the supervisor and the employee. In some of these arrangements, employees can modify the time they begin work and the time they leave every day. In other instances, they can accumulate extra work hours during a given period, which are subsequently taken as leave later on.

 Flexitime - advantages and disadvantages

A flexitime work arrangement benefits both the employee
and the employer. For some employees, especially working parents, such an arrangement can help balance work and family responsibilities such as child or elder care. It can also help commuters avoid time-consuming and stressful rush-hour traffic, and provide workers with larger blocks of "leisure" time.

 The arrangement has many advantages for employers

as well. Such schedules can help curb lateness and absenteeism, and even increase motivation at work. Also, it is often argued that flexitime schedules can increase efficiency by permitting the scheduling of activities to coincide with the ebb and flow of the workload.

 Flexible work schedules have some disadvantages,

however. Under this work arrangement, managers have the uneasy task of ensuring an optimal work flow and the coverage of critical functions; they are also often faced with the additional costs of increased supervision needed to ensure that the required hours are worked by employees. Finally, flexitime schedules can increase some overhead costs such as heating and cooling, since a building's environment must be maintained over the course of a longer working day.

Telecommuting and E-Business managers

Telecommuting is an arrangement for working in which employees, called tele workers or telecommuters stay at home (or else away from office) and work using computers and other electronic devices that connect them with their offices.

 Telecommuting is an increasingly popular

work option in many businesses and industries, and its usage is expected to increase in the future, boosted by new innovations in computer and communication technology.

 This trend is driven by several factors. Linda

Shaw, author of Telecommute! Go to Work without Leaving Home, wrote that "the labor pool of employees with specific talents will shrink, making employers more willing to make concessions to keep valued employees happy. A smaller labor pool combined with an increasing demand for highly skilled laborers has fueled employee-driven change in working environments.

 Scarce, highly skilled workers have begun to

demand more flexible work arrangements, especially as they choose to live farther and farther from their employers." Shaw and other observers also note demographic changes within the American work force as a factor in the growth of telecommuting. These analysts contend that new generations of workers are less willing to sacrifice time with family than their counterparts of previous eras.

 ADVANTAGES OF TELECOMMUTING Both employers and employees have found

telecommuting to be a mutually beneficial arrangement in many instances. Proponents cite several positive factors in particular: Happier employees. Telecommuting arrangements can help workers realize a general improvement in their personal "quality of life." They avoid long, stressful commutes, thus gaining more time for pleasurable activities and more flexibility for changeable tasks like child and elder care.

 Increased retention of valued employees.

Many businesses lose workers when those employees undergo significant life changes, such as starting a family or relocating to another region or state because of a spouse's career. Telecommuting is one way in which a business may be able to continue to utilize the services of an otherwise unavailable worker.

 Cost savings. Businesses can often gain significant

savings in facilities costs like office space and parking space requirements when staff members telecommute. Commuting from home to office is not an issue for tele workers. Therefore they need not live close to their workplace.

Firms may hire best available employees located

anywhere.

 DISADVANTAGES OF TELECOMMUTING But while telecommuting programs have been

highly successful for many businesses of all shapes, sizes, and industry orientations, there are potential pitfalls associated with them. Commonly cited drawbacks include the following: Lack of oversight. Direct supervision of teleworkers is not possible.

 Diminished productivity. Some people are unable to be

productive in at-home work settings, either because of family distractions or their own limited capacity to focus on tasks when more pleasurable activities (bicycling, gardening, watching television, etc.) beckon. Security problems. "The remote access needs of telecommuters and other mobile staff create a hole in security walls with every connection. Procedures should be implemented to allow employee access while keeping out unwanted intruders. This includes periodically updated password protection and informing employees concerning the need for remote access security."

THANK YOU!!!