HUMAN RESOURCE Unit 3

MANAGEMENT
STRATEGIC PAY PLANS
 BASIC FACTORS
IN DETERMINING EQUITY AND ITS
PAY RATES IMPACT ON PAY
Direct Financial RATES
Payments
Employee
Employee
Compensation
Compensation
Indirect Financial
Payments

External Equity

Procedural Equity

Internal Equity Individual Equity

 ADDRESSING EQUITY ISSUES

Methods to Address Equity Issues

Job Analysis and Job Salary Surveys
Evaluation

Performance Appraisal and Communications, Grievance

Incentive Pay Mechanisms, and Employees’
Participation
 EMPLOYEE BENEFITS
Traditional Benefits Non-Traditional Benefits Performance Related Pay
Medical or Health Insurance Employee Assistance Program Individual Payment
Life insurance Employee Stock Option Team or Group payment
Disability Insurance Flexible Work Options Financial Participation
Retirement Benefits Flextime Merit Pay
Leave – National holidays Golden Handshake or Golden Bonus
Sick Leave Parachute
Casual Leave
Maternity leave
Study Leave
Job Sharing
Compressed work week
SALARY STRUCTURE
 COMPONENTS OF SALARY
Basic Pay ALLOWANCES DEDUCTIONS
Dearness Allowance (DA) Provident Fund
40 to 60 % of the CTC (Cost to House Rent Allowance Employees State Insurance
Company) Corporation
Vehicle Allowance Professional Tax
Conveyance Allowance Labour welfare Fund
Medical Allowance
Child Education Allowance
Special Allowance
Incentives or bonuses
Conveyance allowance
Leave Travel Allowance or
Concession (LTA / LTC)
Telephone / Mobile Phone
Allowance
A SYSTEMATIC TECHNIQUE USED FOR DECIDING THE RELATIVE WORTH OF
A JOB BASED ON ITS COMPARISON WITH OTHER JOBS
 METHODS OF JOB EVALUATION
Qualitative Quantitative
Methods Methods
• Ranking or Job • Point Rating
Comparison • Factor Comparison
• Grading or Job
Classification
 QUALITATIVE METHODS
• Jobs are paired and for each pair the most impactful job is chosen. This
Ranking method/ Job results in a forced ranking of different jobs based on their seniority.
comparison • This approach is only recommended for smaller organizations with fewer
than 100 jobs
 Customer Service Representative
Marketing Manager (1) Sales Executive (2)
(3)
The Sales Executive's main job is to
The Marketing Manager is responsible for The Customer Service Representative
convert leads generated by
designing and implementing marketing handles customer inquiries, resolves
marketing into sales. This role
campaigns, managing social media and digital complaints, and ensures customer
involves reaching out to potential
advertising, and analyzing market trends to satisfaction. This role is essential for
Duties clients, conducting product
position the company effectively. This role is maintaining long-term relationships
demonstrations, negotiating deals,
essential for building the company’s brand, with clients and ensuring that existing
and closing sales. The performance
attracting new customers, and driving long- customers continue to use the
of this role directly impacts the
term business growth. company’s software services
company’s revenue.
Persuasion, relationship-building, Problem-solving, patience,
Strong communication, strategic thinking, and
Skills Required product knowledge, and negotiation communication, and conflict resolution
leadership skills
skills. skills.

The role has a direct impact on creating leads This role brings immediate financial The role contributes to customer
for the sales team, enhancing the company’s gains to the company by generating retention and improves customer
Impact
reputation, and ensuring a strong market income from new clients and satisfaction, but it does not directly
presence retaining existing ones. create new revenue

Indirectly contributes by retaining

Generates potential revenue by attracting Directly generates revenue by closing
Contribution to Revenue customers but does not bring new
leads. sales.
revenue.

Medium – Critical for converting Low – Focuses on retaining customers,

Priority for Company High – Essential for attracting new customers
leads into sales and driving but not critical for new business
Growth and building brand awareness.
immediate revenue. growth.
 • Jobs are grouped based on the similarities found in their characteristics
and values.

Job Classification • Generally, jobs within each job group or class are eligible for the same
pay scale or grade.
• An example classification is a CEO, vice president, director, manager,
and operator.
 QUANTITATIVE METHODS
• Jobs are broken down based on various identifiable factors
Point such as skill, effort, training, knowledge, hazards, responsibility,
etc.

Rating • Thereafter, points are allocated to each of these factors.

Factor • This method is a combination of both ranking and

point methods in the sense that it rates jobs by
Comparison comparing them and makes analysis by breaking
jobs into compensable factors.
EXAMPLE OF POINT RATING METHOD
EXAMPLE OF FACTOR COMPARISON METHOD
INDUSTRIAL RELATION
 Industry
It is just not a small segment of economic
activity, but has come to include all
gainful employments, including service
under the state.

Industrial Relation
Industrial relations refers to the relationship
between employers, employees, and the
government in relation to work conditions, rights,
and obligations. It encompasses systems to resolve
disputes and regulate interactions. Understanding
these concepts is fundamental to analyzing the
dynamics between different stakeholders.
Actors of industrial relations: Management, Union
and Government
 Key Stakeholders

Stakeholder Role Interests

Employers Provide jobs Maintain profitability

Employees Work for wages Fair treatment and benefits

Unions Represent workers Advocate for rights

Government Regulate relations Ensure fair practices

Consumers Purchase goods/services Quality and price

 IMPORTANCE
•No or less industrial disputes (e.g. work stoppage due
to strike, lockout or closure)
•Increased productivity and efficiency
•Optimum resource utilization
•Highly motivated and engaged workforce
•Healthy industrial democracy, where employer,
employee, and government partner with each other
•No unfair malpractices by either management or union
•Enactment of labour laws dominant in the country
•Maintenance of work-life balance, health, and safety
of all employees
https://www.youtube.com/watch?v=zCPgz1V_mCo
 APPROACHES OR THEORETICAL
PERSPECTIVES TO INDUSTRIAL RELATIONS
1) UNITARY APPROACH :

•The entire organization is viewed as a harmonious system, where

management, workers, and others work toward the same
organizational objectives and share same interests (win-win situation)
•Mutual cooperation; individual treatment; teamwork and shared
goals.
•Two Perspectives:
1. The Industrial conflicts are abnormal and must be suppressed by
all means
2. Industrial conflicts are unavoidable but believes that they ought to
be controlled through diligent planning and management.
2) PLURALISTIC APPROACH :

•Conflict is inevitable as individuals are with different set

of beliefs, attitudes, and values. Conflict is beneficial if
identified and addressed early.
•Trade unions as legitimate representatives of employee
interests.
•Stability in IR as the product of concessions and
compromises between management and unions.
•Unions balance the powers between management and
employees.
3) MARXIST/RADICAL APPROACH :

•Conflict between managers and workers is inevitable but is the product of the CAPITALIST society.
•Industrial conflicts are the central reality of industrial relations, but open conflicts are uncommon
•TU are seen as labor reaction to exploitation by capital, as well as a weapon to bring about
revolutionary social change
4) GANDHIAN/ TRUSTEESHIP APPROACH:

•Mahatma Gandhi proposed this approach.

•The utility of non-violence as a means of conflict
resolution in the organization.
•Basic elements: truth, non-violence, the voluntary
arbitration of disputes and want-lessness.
•Like a trustee, an organization takes total responsibility
for serving the best interests of shareholders, customers,
employees, and large society.
•More of an ideological underpinning and difficult to
implement in real life.
5) HUMAN RELATION APPROACH:
•Organizations are made up of
people and the success of the
management lies in its dealings with
these people and their relationships
to one another.
•Aim of this approach is to make
policies and techniques which can
improve employee motivation,
morale, efficiency and job
satisfaction.
6) GIRI APPROACH:
•Former president of India V. V. Giri.
•Focuses on the relevance and importance of
voluntary negotiations between the employers
and the employees as a means of settling
disputes.
•Insists on the establishment of bipartite forums at
different levels of industry to wipe out the
dispute between the employers and the
employees represented by their unions.
 DUNLOP’S FRAMEWORK
OF IR

•The actors:
•The ideology:
1.Managers and their representatives. A set of shared beliefs, such as the actors' mutual
2.Workers and their organizations. acceptance of the legitimacy of other actors and
3.Specialized government agencies. their roles.

•The contexts: •The network or web of rules:

Outcomes include wages and benefits, rules about
1.The technological characteristics. work relations, employment security, productive
2.Factor market and budgetary constraints.
efficiency, industrial peace and conflict, and
industrial democracy.
3.Locus and distribution of power
TRADE UNION LEGISLATION
 Trade Union
• Any combination, whether temporary or permanent,
formed primarily for the purpose of regulating the
relations between workmen and employers or
TRADE between workmen and workmen or for imposing
restrictive conditions on the conduct of any trade or
UNION ACT, business and includes any federation of two or more
Trade Unions.

1926 Trade Dispute

• Any dispute between employers and workmen or
between workmen and workmen, or between
employers and employers which relates to the
employment or non-employment, or the terms of
employment or the conditions of labor, of any person
 Historical Overview
Trade unions have evolved significantly over
the centuries. The first labor unions emerged
in the late 18th century during the Industrial
Revolution. Through the 19th century,
unions gained traction, advocating for better
working conditions. Major milestones
include the passing of labor laws in the early
20th century and significant strikes that
shaped labor rights. Today, unions continue
to play an important role in shaping labor
policies globally.

NEXT
 OBJECTIVES OF TRADE UNION ACT
•To improve the economic lot of workers by securing them better wages.
•To secure for workers better working conditions.
•To secure bonuses for the workers from the profits of the enterprise/organization.
•To ensure stable employment for workers and resist the schemes of management that reduce employment
opportunities.
•To provide legal assistance to workers in connection with disputes regarding work and payment of wages.
•To protect the jobs of labor against retrenchment and layoff etc.
•To ensure that workers get as per rules provident fund, pension and other benefits.
•To secure for the workers better safety and health welfare schemes.
•To secure workers participation in management.
•To inculcate discipline, self-respect and dignity among workers.
•To ensure opportunities for promotion and training.
•To secure organizational efficiency and high productivity.
•To generate a committed industrial work force for improving productivity of the system.
 Any seven or more members of a trade
union by subscribing their names to the rules
of the trade union and by otherwise
complying with the provisions of the Act, may
apply for its registration

REGISTRATION No trade union of workmen will be

registered under the Act unless at least 10%
or 100 of the workmen, whichever is less,
engaged or employed in the establishment
or industry with which it is connected, are the
members of such a trade union on the date
of making such application for registration.
 Eligibility Criteria

Criteria Description Notes

Must have a minimum number of

Membership Size Varying requirements by region.
members, typically 20-30.

Must focus on workers' rights and Not for profit-making. Vastly

Purpose
interests. important.

Must have a defined constitution and

Legal Structure Legally binding.
organizational structure.

Must adhere to equality and anti-

Non-Discrimination Diversity and inclusion are mandated.
discrimination policies.

35
 APPLICATION FOR REGISTRATION
Every application for registration is to be accompanied by a copy of the rules of the trade
union and a statement of the following particulars:

In the case of trade union of

The names, occupation and workmen, the names, occupation
addresses of the members and addresses of the place of
making the application work of the members making
the application

The titles, names,ages,addresses

The name of the trade union
and occupation of the office-
and address of its head office
bearers of the trade union.
On the application of trade union

If certificate has been obtained by fraud or mistake

In absence of requited number of members

CANCELLATION OF REGISTRATION
COLLECTIVE BARGAINING
Collective bargaining is defined as a free and voluntary forum that
facilitates negotiation between employers and employees’ unions on
issues affecting the interests and rights of both parties so that an
amicable settlement is reached in good faith.
 TYPES OF BARGAINING

Distributive Integrative
bargaining bargaining

Composite Productivity
bargaining bargaining
 Distributive Bargaining Integrative Bargaining

• A bargaining process is described • When there is a convergence of

as distributive bargaining when interests, needs and goals among
the parties to the bargaining the parties to the bargaining, the
process have conflicting needs, bargaining process is usually
interests and goals. described as integrative
• In distributive bargaining, the bargaining.
employers and employees • In this type of bargaining, the
normally adopt opposing employers and the employees
positions. have the same attitude towards
• one party’s gain is another party’s the issues discussed in the
loss as their needs are mutually bargaining and are equally
exclusive. concerned about its outcome
• Economic issues like wages • Agreements regarding employee
revisions, benefits, bonuses, leaves health and safety at the end of
and workloads become the major the bargaining process usually
agenda of distributive bargaining. benefit both the parties.
 Composite Bargaining Productivity Bargaining

• Composite bargaining has • Productivity bargaining is when

nothing to do with compensation. an employer agrees to offer
Instead, it focuses on other issues, employees additional bonuses or
such as working conditions, job improve their work conditions in
security, and other corporate hopes that this can increase
policies. employee productivity.
• Employer well-being and job • Labor union leaders often use
security are two of their most higher salaries and compensation
common concerns. to boost employee productivity,
• The goal is to build a long-term which leads to higher profits
connection between the company and value for the employer.
and employees. • The employer's main concern is
• Employees’ long-term futures are the organization’s success.
highlighted by outlining
challenges they may face.
THE COLLECTIVE BARGAINING PROCESS
 Sources of Grievances
Grievance • Discipline
• Any discontent or dissatisfaction, whether
• Seniority
expressed or not, whether valid or not,
arising out of anything connected with a • Job evaluations
company that an employee thinks, believes,
or even feels is unfair, unjust, or inequitable. • Work assignments
• Grievance means any real or imagined • Overtime
feeling of personal injustice which an
employee has, concerning his employment • Vacations
relationship. • Incentive plans
• Holiday pay
• Problem employees

GRIEVANCES
•Wages, incentives, work arrangements, complaints about job
satisfaction
•Rule interpretation, transfer, seniority promotion
•Working conditions, safety, welfare amenities
•Supervision, discipline, grievances against foremen, interpersonal
relationships and
•Contract Violation, unfair labor practices.

GRIEVANCES MAY FALL UNDER

THESE BROAD CATEGORIES
 GRIEVANCE PROCEDURE
•Present verbally in person to the officer designated by the management and must be taken care of in 48
hours.
•If unsatisfied, he with the department representative goes to HOD who must settle the case within 3 days.
Record reasons for the delay.
•It is not satisfied by HOD and then goes to the grievance committee.
• The committee considers the matters and makes recommendations to the manager within 7 days.
•Unanimous recommendations must be implemented by the management and the aggrieved workman is
entitled to know the decision through the personnel officer within 3 days.
•If the employee is still dissatisfied, he has a right to appeal to the higher management tier for revision
and may union with him. The management must inform within a week.
•If the workmen are still not satisfied, the union may ask for voluntary arbitration, and in that case, the
arbitrator’s decision is binding on both parties.
• The management and the aggrieved workman must implement unanimous recommendations
THANK YOU!