UNIT 3

By Yogesh Sir
• Strategic Human Resource Management (SHRM) is the process of
aligning human resource management practices with the strategic
goals of an organization to improve its performance and achieve long-
term objectives.
• It focuses on integrating HR policies, practices, and programs with the
organization’s vision, mission, and strategies to ensure that employees
contribute effectively to business success.
• Components
Of SHRM
10C’s of SHRM
Main Approaches to Strategic HRM
• Career refers to an individual’s journey through
their professional life, encompassing the
sequence of jobs, roles, and experiences they
undertake over time.
• It involves the development of skills, knowledge,
and expertise in a chosen field, with a focus on
personal growth, job satisfaction, and achieving
long-term goals.
Career Planning
• Career planning is traditionally understood as the process of assessing
personal strengths, values and aspirations, establishing goals and
objectives; identifying the steps needed to achieve them;
• and putting this information into a written career plan, which will then
be periodically reviewed and updated.
Career Paths / Patterns
Career Path Type Movement Tenure in Roles Motivation Key Characteristics
Steady career
Traditional upward progression with
Linear Variable Power, Achievement
movement varying lengths in
roles.
Deep focus in one
Little movement Mastery, Expertise, discipline with
Expert Long tenure
(focus on one area) Security minimal role
changes.
Broadening of
Lateral movement to Personal Growth,
Spiral 7-10 years per role skillset across
broaden exposure Creativity
multiple functions.
Frequent changes
Lateral moves for
Variety, with an emphasis on
Transitory variety and 3-5 years per role
Independence gaining diverse
independence
experiences.
Collaboration, Mix of upward
Combination of
Network Career Networking, movement and
vertical and Varies
Path Multiple lateral exploration in
horizontal moves
Opportunities career.
• Succession Planning is the process of identifying and developing
internal talent to fill key leadership positions within an organization
over time.
• This strategic approach ensures that an organization has a ready pool
of qualified candidates for critical roles, especially in the event of
retirements, resignations, or promotions.
• The goal is to maintain business continuity, preserve institutional
knowledge, and minimize disruptions that could arise from leadership
gaps.
Balanced Scorecard
• The Balanced Scorecard (BSC) is a strategic planning and
performance management framework that helps organizations align
their activities with their vision and strategy.
• Developed by Robert Kaplan and David Norton in the 1990s, the
Balanced Scorecard provides a comprehensive view of an
organization’s performance by measuring not only financial outcomes
but also other key areas that drive success.
Introduction to Performance Appraisal
• Definition: Performance appraisal is the process by which an employee’s job
performance is evaluated to determine their efficiency, effectiveness, and
contribution towards the organizational goals.
• Purpose: The key purpose of performance appraisal is to assess employee
performance, provide feedback, guide development, determine compensation, and
aid in decision-making processes related to promotions, demotions, or
terminations.
• Importance: It helps to align the employee’s goals with the organization’s
objectives, improves productivity, and enhances career development.
• Graphic Scale Method: It is also known as linear rating scale. In graphic
rating scale the printed appraisal form is used to appraise each employee. Such
forms contain a number of objectives, and trait qualities and characters to be
rated like quality of work and amount of work, job knowhow, dependability,
initiative, attitude, leadership quality and emotional stability.
• Grading Method: In this method, certain categories are defined well in
advance and employees are put in particular category depending on their
traits and characteristics. Such categories may be defined as outstanding,
good, average, poor, very poor, or may be in terms of alphabet like A, B,
C, D, etc. where A may indicate the best and D indicating the worst.
• Forced Distribution Method: This method was evolved to abolish the
trend of rating most of the employees at a higher end of the scale. The
fundamental assumption in this method is that employees’ performance
level conforms to a normal statistical distribution. For example, 10 per cent
employees may be rated as excellent, 40 per cent as above average, 20 per
cent as average, 10 per cent below average, and 20 per cent as poor.
• Forced-choice Method: The forced-choice rating method contains a
sequence of question in a statement form with which the rater checks
how effectively the statement describes each individual being
evaluated in the organization.
Description (वििरण):
The rater is given a list of descriptive statements; they must select
which ones best describe the employee.
मूल्यां कनकर्या को कथनोां की सूची दी जयर्ी है , जजनमें से वह कमाचयरी के
अनुरूप कथन को चुनर्य है ।
• Check-list Method: It may be both the
statement describes the characteristics of an
employee, but the rater is forced to tick only
one i.e. the most appropriate statement which
may be more descriptive of the employee.
Description (वििरण):
The rater is provided with a set of descriptive
statements. They must tick the one that best
describes the employee.
मूल्यां कनकर्या को कथनोां की एक सूची दी जयर्ी है ,
जजसमें से उसे केवल एक सबसे उपयुक्त कथन कय
चयन करनय होर्य है ।
•
• Critical Incidents Method: This method is very useful for finding out those
employees who have the highest potential to work in a critical situation. It is
also said to be a continuous appraisal method where employees are appraised
continuously by keeping in mind the critical situation.
Description (वििरण):
Employees are assessed based on their responses or performance in critical
situations, usually recorded continuously.
कमाचयरी कय मूल्यां कन महत्वपूर्ा पररस्थिजर्योां में उनके प्रदर्ान के आधयर पर जकयय
जयर्य है और यह सर्र् मूल्यां कन जवजध होर्ी है ।
• Essay Method: In this method, the rater writes a detailed description
on an employee’s characteristics and behavior, Knowledge about
organizational policies, procedures and rules, Knowledge about the
job, Training and development needs of the employee, strengths,
weakness, past performance, potential and suggestions for
improvement.
• Field Review Method: In this method, a trained, skilled representative of the HR
department goes into the 'field' and assists line supervisors with their ratings of their
respective subordinate’s. Annual confidential report: It is mostly used in
government organisations. It is a descriptive report prepared, generally at the end of
every year, by the employee's immediate superior. The report highlights the
strengths and weaknesses of the subordinate. The impressions of superior about the
subordinate are merely recorded there. It does not offer any feedback to the
appraisee.
• Group appraisal: In this method, an employee is appraised by a group of
appraisers. This group consists of the immediate supervisor of the employee, other
supervisors who have close contact with the employee's work, manager or head of
the department and consultants.
• Management by Objectives (MBO): The concept of ‘Management by Objectives’
(MBO) was coined by Peter Drucker in 1954. It is a process where the employees
and the superiors come together to identify some goals which are common to them,
the employees set their own goals to be achieved, the benchmark is taken as the
criteria for measuring their performances and their involvement is there in deciding
the course of action to be followed.
• Assessment Centres: It is a method which was first implemented in German Army
in 1930. This is a system of assessment where individual employee is assessed by
many experts by using different technique of performance appraisal. The
techniques which may be used are role playing, case studies, simulation
exercises, transactional analysis etc. This method has certain advantages such as
it helps the observer in making correct decision in terms of which employee has
the capability of getting promoted, but it has certain disadvantages also it is costly
and time consuming, discourages the poor performers etc.

• 360 Degree Performance Appraisals: This method is also known as ‘multi-rater

feedback’, it is the appraisal in a wider perspective where the comment about the
employees’ performance comes from all the possible sources that are directly or
indirectly related with the employee on his job. In 360 degree performance
appraisal an employee can be appraised by his peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/ vendors etc. The four major
component of 360 degree performance appraisal are: Employees Self Appraisal,
Appraisal by Superior, Appraisal by Subordinate & Peer Appraisal.
• Cost Accounting Method: In this method performance of an employee is
evaluated on the basis of monetary returns the employee gives to his or
her organization. A relationship is recognized between the cost included
in keeping the employee in an organization and the benefit the
organization gets from him or her. The evaluation is based on the
established relationship between the cost and the benefit.
• लयगर् लेखयां कन जवजध: इस जवजध में जकसी कमाचयरी के प्रदर्ान कय मूल्यां कन उस
मौजिक ररटना के आधयर पर जकयय जयर्य है जो कमाचयरी अपने सांगठन को दे र्य है ।
कमाचयरी को सांगठन में रखने में र्यजमल लयगर् और उससे सांगठन को जमलने
वयले लयभ के बीच एक सांबांध पहचयनय जयर्य है । मूल्यां कन लयगर् और लयभ के
बीच ियजपर् सांबांध पर आधयररर् है ।
• Organisational Development (OD) is focussed on improving the effectiveness
of organisations and the people in those organisations.
• According to Koontz “OD is a systematic integrated and planned approach to
improve the effectiveness of the enterprise. It is designed to solve problems
that adversely affect the operational efficiency at all levels”.
• ‘Burke’ has defined OD as “a planned process of change in an organization’s
culture through the utilization of behavioral science technology, research and
theory”.
• संगठनात्मक विकास (OD) संगठनों और उन संगठनों में लोगों की प्रभािशीलता में सुधार करने
पर केंद्रित है।
• कं टज़ के अनुसार "OD उद्यम की प्रभािशीलता में सुधार करने के ललए एक व्यिस्थित एकीकृत और
लनयोलित दृष्टिकोण है। इसे उन समस्याओ ं को हल करने के ललए डिज़ाइन वकया गया है िो सभी
स्तरों पर पडरचालन दक्षता को प्रततकल रूप से प्रभावित करती हैं "।
• 'बकक' ने OD को "व्यिहार विज्ञान प्रौद्योगगकी, अनुसंधान और लसद्ांत के उपयोग के माध्यम से
संगठन की संस्कृतत में बदलाि की एक योिनाबद् प्रविया" के रूप में पडरभावतत वकया है।
Aspect Organizational Change Organizational Development
Definition The process of altering an organization's structure, strategy.A planned and systematic approach
or operations to adapt to internal or external changes. aimed at improving organizational
effectiveness and health.
Focus Often focuses on specific aspects like structure technology. or Emphasizes people, culture, and
processes. continuous improvement across all
areas.
Time Frame Can be short-term addressing immediate issues or adapting Typically long-term, focusing on
to new situations sustained growth and adaptation.
Approach Often reactive, responding to changes in the environment or Proactive involving planned
internal issues. interventions for overall
improvement
Methodolog May involve abrupt changes like restructuring downsizing. or Utilizes behavioral science
y process reengineering techniques, group processes, and
training.
Scope of Limited to specific problems or areas, sometimes disruptive. Holistic approach aimed at gradual
Change and comprehensive improvements.
Involvement Primarily top-down, with management driving the change. Collaborative involving employees at
all levels in the change process.
Goal Adaptation and survival in a changing environment Enhancement of organizational
health, culture, and employee
development.
OD Interventions
Intervention Type Intervention Description Example
Training individuals to be
Conducting workshops to
Individual-Focused more aware and respectful
Sensitivity Training reduce unconscious bias in
Interventions of diversity and others'
the workplace.
feelings.
Enhancing individual skills Providing training in new
Skill Training to improve job software tools to
performance. employees.
Modifying job roles to Changing tasks to reduce
Job Redesign better fit the skills and repetitive work and
interests of employees. increase job satisfaction.
Clarifying and negotiating Meetings to define clear
Role Negotiation roles and responsibilities to responsibilities between
reduce conflict. team members.
Helping individuals plan Offering mentoring
Career Planning their career paths and programs for career
development. advancement.
Training managers to
Management Development Leadership workshops for
improve their leadership
Training new managers.
and management skills.
 Collecting and sharing
Conducting employee
Organisation and Group- feedback from employees
Survey Feedback satisfaction surveys and
Focused Interventions to improve organizational
discussing results.
processes.
Managers and employees
Setting clear objectives
Management by setting quarterly
collaboratively to align
Objectives (MBO) performance goals
goals and performance.
together.
Improving work
Introducing flexible work
Quality of Work Life environment and
hours or wellness
(QWL) conditions to enhance
programs.
employee well-being.
Activities designed to
improve teamwork and Organizing team retreats
Team Building
cooperation among group or collaborative projects.
members.
Expert advice to improve Hiring a consultant to
Process Consultation organizational processes optimize production
and workflows. procedures.
• Employee engagement refers to the emotional commitment and
involvement an employee has toward their organization and its goals.
Engaged employees are motivated, enthusiastic, and dedicated to their
work, often going beyond basic job requirements because they feel a
strong connection to their company.
Employee Engagement Grid /
कमकचारी सहभागगता गिि
Category Description Example

Employees who are new to the A recently hired software developer

Inquisitive company but highly engaged and who is enthusiastic, asks questions,
eager to learn. and takes initiative.

A senior manager who has been with

Long-tenured employees who are
the company for years and
Believers highly engaged and committed to the
consistently shows dedication and
company.
loyalty.

A new recruit who seems

New employees who show low
disinterested, unmotivated, and is
Good bye engagement and may be at risk of
considering quitting within a few
leaving early.
months.

An employee who has been with the

Long-tenured employees who are company for years but does just
Paper-weights
disengaged and contribute minimally. enough to keep their job without
enthusiasm or extra effort.
The Zinger Model
The Zinger Model is a framework
used primarily in employee
engagement and organizational
development to quickly identify
and address issues that impact
employee motivation and
performance. It focuses on
pinpointing key drivers that can
significantly improve engagement
and productivity, often through
targeted, straightforward actions.
The 4 Pillars of Engagement
Energy: The vitality and enthusiasm employees bring to
their work.
Engagement: The emotional commitment employees
have toward their work.
Enthusiasm: The excitement and positivity employees
exhibit in their roles.
Efficacy: The belief in one’s ability to achieve goals and
contribute effectively.
AON HEWITT’S MODEL OF EMPLOYEE
ENGAGEMENT / एओएन हेविट का कमकचारी
िुडाि मॉिल
X MODEL OF EMPLOYEE ENGAGEMENT
/ कमकचारी सहभागगता का X मॉिल
• The Engaged: These employees experience maximum satisfaction and
contribute significantly. For example, a team leader who is enthusiastic about
projects and works hard to achieve team goals.
• The Almost Engaged: They contribute but with less satisfaction, possibly
looking for more alignment with their values. For instance, a skilled employee
who is productive but feels disconnected from the company's culture.
• The Crash & Burners: High contribution but low satisfaction, often leading to
burnout. An example is a high-performing employee who works long hours but
feels underappreciated.
• The Honeymooners & Hamsters: High satisfaction but low contribution; they
may feel content but aren’t fully productive. For example, a new hire excited
about the role but still adapting to their tasks.
• The Disengaged: Low satisfaction and low contribution, often dissatisfied and
unmotivated. An example is an employee who feels neglected and puts in
minimal effort.
WIFI MODEL OF EMPLOYEE ENGAGEMENT
/ कमकचारी िुडाि का िाईफाई मॉिल
• The four important drivers of employee engagement
are wellbeing, information, fairness and involvement.
The first letters of these four drivers are used to name
this model as WIFI model of engagement (Cook, 2008).
Well-being
Information
Fairness
Involvement
• The model's name comes from the first letters of these four drivers. The WIFI model is based
on the idea that these four components are powerful when brought together, like a network.
• To measure employee engagement, the WIFI model uses a survey that asks respondents to
indicate their level of agreement with each statement on a scale of one to ten. The average
score for each section is 7 out of 10. Scores are interpreted as follows:
• मॉडल का नाम इन चार चालकों के पहले अक्षरों से आता है। वाईफाई मॉडल इस ववचार पर आधाररत है वक ये चार
घटक एक साथ लाए जाने पर शक्तिशाली होते हैं, जैसे वक एक नेटवकक।
• कमकचारी जुडाव को मापने के ललए, वाईफाई मॉडल एक सवेक्षण का उपयोग करता है जो उत्तरदाताओ ं से एक से
दस के पैमाने पर प्रत्येक कथन के साथ उनकी सहमवत के स्तर को इं क्तगत करने के ललए कहता है। प्रत्येक
अनुभाग के ललए औसत स्कोर 10 में से 7 है। स्कोर की व्याख्या इस प्रकार की जाती है:
• 75 and over: High degree of engagement
• 55 to 74: Average degree of engagement
• 1 to 54: Low degree of engagement
• 75 और उससे अक्तधक: जुडाव का उच्च स्तर
• 55 से 74: जुडाव का औसत स्तर
• 1 से 54: जुडाव का लनम्न स्तर
WORK LIFE BALANCE
Reasons For Imbalance / असंतुलन के कारण
ललिंग भेद

काम पर लज़म्मेदाडरयााँ बढ़

गईं

घर पर लज़म्मेदाडरयााँ बढ़
गईं

िैलिक अर्कव्यििा

सोशल मीडिया

अिास्तविक अपेक्षा
Consequences of work life imbalance / कायक-िीिन असंतुलन के पडरणाम

भािनात्मक तनाि

स्वास्थ्य समस्याएं

कम आत्मवििास

डरश्ते की समस्याएं

तचवकत्सा संबंधी गलततयााँ

कायकिल पर डहिंसा में

संललप्तता

उत्पादकता में गगरािट

Solution to prevent work life imbalance / कायक-िीिन असंतुलन
को रोकने का समाधान
समय प्रबंधन

लनलित समय पर काम

समाप्त करें

उपस्थित और सुसंगत रहें

लचीला शेड्यल

माइं िफुलनेस का अभ्यास

करें

कोच या र्ेरवे पस्ट के सार्

काम करें
Theories in support of work life adoption / कायक िीिन
अपनाने के समर्कन में लसद्ांत

This approach links management's decision to adopt WLB

Institutional
practices to conform to normative pressures in the society
Theory
(namely, organization size, ownership, industry, unionization
levels and other factors that influence).

यह दृष्टिकोण समाि में मानक दबािों (अर्ाकत् संगठन का आकार,

संिागत लसद्ांत स्वालमत्व, उद्योग, संघीकरण स्तर और अन्य कारक िो प्रभावित करते हैं )
के अनुरूप WLB प्रर्ाओ ं को अपनाने के प्रबंधन के लनणकय को िोडता है।
This theory connects the responsiveness of organizations to
Organizational
Adaptation Theory
internal environmental factors (namely, proportion of female
staff, skill levels, work processes and senior management
values).
संगठनात्मक अनुकलन
लसद्ांत
यह लसद्ांत संगठनों की अनुवियाशीलता को आंतडरक पयाकिरणीय
कारकों (अर्ाकत् मडहला कमकचाडरयों का अनुपात, कौशल स्तर, कायक
प्रविया और िडरष्ठ प्रबंधन मल्य) से िोडता है ।
 This theory regards the WLB practices as strategic HRM initiatives
High Commitment taken up in order to generate increased employee commitment
Theory to the organization.

यह लसद्ांत WLB प्रर्ाओ ं को संगठन के प्रतत कमकचाडरयों की प्रततबद्ता

High Commitment
Theory बढ़ाने के ललए अपनाई गई रणनीततक मानि संसाधन प्रबंधन पहल के
रूप में मानता है।

This approach explains the adoption in terms of pressures

Situation Theory to increase profitability and productivity and to deal with
problems of employee recruitment and retention

यह दृष्टिकोण लाभप्रदता और उत्पादकता बढ़ाने तर्ा कमकचारी भती और

Situation Theory
प्रततधारण की समस्याओ ं से लनपटने के ललए दबाि के संदभक में अपनाने
की व्याख्या करता है
Work-Life Balance Practice Description Example
Employees have control over setting Nurses choosing their preferred shifts
Self-Rostering
their own work schedules. to suit personal life.
Employees work a set number of hours Employees can work longer hours
Annual Hours System annually, with flexible daily/weekly during busy periods and less during
schedules. quieter times.
Employees work fewer hours than full- A parent working 20 hours per week
Part-Time Work
time, allowing more personal time. instead of 40.
Work schedules aligned with school Teachers or parents working only
Term-Time Working
terms, giving holidays off. during school terms.
Two or more employees share the Two employees splitting a 40-
Job Sharing
responsibilities of one full-time job. hour/week job, each working 20 hours.
Employees perform their job duties An office worker doing tasks from
Working from Home
remotely from their home. home via computer.
Flexible, often short-term or irregular Seasonal retail workers hired for
Temping or Casual Work
work contracts. holiday seasons.
Time off granted for family-related
A mother taking maternity leave after
Family Leave reasons such as maternity/paternity
childbirth.
leave.
Support services for employees to help Counseling services offered to
Employee Assistance Programme (EAP)
manage personal and work challenges. employees dealing with stress.
• Occupational Safety, Health And Working
Conditions Code, 2020 / व्यािसातयक सुरक्षा,
स्वास्थ्य और कायक स्थितत संडहता, 2020

• The Occupational Safety, Health and Working Conditions Code,

2020 (व्ययवसयजयक सुरक्षय, स्वयस्थ्य और कयया स्थिजर् सां जहर्य, 2020) is an
Indian labor law that consolidates and simplifies laws related to
occupational safety, health, and working conditions of workers across
various sectors.
Key Points:
• Purpose:
To ensure the safety, health, and welfare of workers in factories,
mines, plantations, and other establishments.
• Consolidation:
It merges and replaces 13 earlier labor laws, including the Factories
Act, Mines Act, and others related to worker safety and welfare.
• Scope:
Applies to all establishments employing workers in any industry,
covering aspects such as working hours, safety standards, health
provisions, and welfare measures.
Laws to be Subsumed / सम्मम्मललत वकये िाने िाले कानन
• The Working Journalist (Fixation of • श्रमिीिी पत्रकार (मिदरी की दरों का लनधाकरण)
rates of wages) Act, 1958 अतधलनयम, 1958
• The Cine Workers and Cinema • लसनेमा कमकचारी और लसनेमा गर्येटर कमकचारी
Theatre Workers Act, 1981 अतधलनयम, 1981
• The Motor Transport Workers Act, • मोटर पडरिहन कमकचारी अतधलनयम, 1961
1961 • वबिी संिधकन कमकचारी (सेिा की शतें) अतधलनयम,
• The Sales Promotion Employees 1976
• बीडी और लसगार कमकचारी (रोिगार की शतें)
(Conditions of Service) Act, 1976
अतधलनयम, 1966
• The Beedi and Cigar Workers
(Conditions of Employment) Act,
1966
• The Factories Act, 1948 • (Regulation of Employment
• The Contract Labour and Conditions of Service)
(Regulation and Abolition) Act, 1996
Act, 1970 • The Plantations Labour Act,
• The Mines Act, 1952 1951
• The Dock Workers (Safety, • The Inter-State Migrant
Health and Welfare) Act, 1986 Workmen (Regulation of
Employment and Conditions
• The Building & Other of Service) Act, 1979
Construction Workers • The Working Journalist and
other News Paper Employees
(Conditions of Service and
Miscellaneous Provision) Act,
1955
Chapter No. Chapter Title Description
Contains definitions, scope, and general
I Preliminary
provisions applicable to the entire Code.

Details the process and requirements for

II Registration registration of establishments covered under
the Code.
Specifies the responsibilities and duties of
III Duties of Employer and Employees, etc. employers and employees to ensure
workplace safety.
Focuses on the implementation of safety
IV Occupational Safety and Health measures and health standards at the
workplace.
Sets standards for maintaining health safety
V Health Safety and Working Conditions and appropriate working conditions for
workers.
Includes provisions for the welfare of
VI Welfare Provisions workers, such as facilities and amenities at
the workplace.
Regulates working hours, overtime, rest
VII Hours of Work and Annual Leave with Wages intervals, and annual leave entitlements with
wages.
Mandates the upkeep of accurate registers
Maintenance of Registers, Records and
VIII and records by employers and the submission
Returns
of returns.
 Defines the role, powers, and
Inspector-Cum-Facilitators and Other
IX responsibilities of inspectors and facilitators
Authority
under the Code.
Provides special regulations to protect and
Special Provision Relating to Employment of
X promote the employment of women
Women
workers.
Addresses the rights and protections for
Special Provisions for Contract Labour and
XI contract laborers and interstate migrant
Inter-State Migrant Worker, etc.
workers.
Details offenses related to the Code and the
XII Offences and Penalties
penalties for violations.
Establishes a fund to provide social security
XIII Social Security Fund benefits to workers covered under the
Code.
Covers various other provisions and rules
XIV Miscellaneous
not categorized elsewhere in the Code.
Lists industries where hazardous processes
List of Industries involving hazardous
First Schedule are carried out and additional safety
processes
regulations apply.
Enumerates specific matters and issues
Second Schedule List of Matters
governed by the Code.
Specifies occupational diseases that must
Third Schedule Diseases List of Notifiable
be notified under the Code.
Labour Welfare
• I.L.O. session held at New Delhi in 1947 defined Labour Welfare as
“such services, facilities and amenities, which may be established in or
in the vicinity of, undertakings to enable persons employed therein
to perform their work in healthy, congenial surroundings and to provide
them with amenities conducive to good health and good morale.
• N.M. Joshi felt that labour welfare “covers all the efforts which
employers make for the benefit or their employees over and above
the minimum standard of working conditions fixed by Factories Act
and over and above the provision of social legislation providing
against accident, old age, unemployment and sickness”
 Different Aspects of Labour Welfare
Humanitarian Enabling the workers to enjoy a healthy, richer lifestyle leading to high morale and
Aspect motivation. It aims to lessen the sufferings of the working class.

Economic It is in the form of compensation and seeks to provide basic amenities of life. It helps
Aspect maintain the self respect and dignity of the worker and his family members.

Aims to develop a feeling of affection, love, regard and affection between the employees
Civic Aspect
and employer and amongst the employees.

Futuristic It aims to provide secure, safe and bright future with professional growth and
Aspect career. It also ensures retirement benefits e.g. pension, Provident fund etc.
 Theory Description Example
Views labour welfare as a means of
Factory safety rules enforced by
Police Theory controlling and regulating workers to
management.
maintain discipline.
Welfare activities are motivated by
Company organizing charity events for
Religious Theory religious or moral obligations to help
workers.
workers.
Welfare is seen as an act of charity or
Providing free meals or housing for
Philanthropic Theory kindness by employers towards
workers.
employees.
Employers act as trustees, responsible
Sharing profits with workers or offering
Trusteeship Theory for the well-being of employees beyond
pensions.
profit motives.
Welfare measures are implemented to
Offering recreational facilities to avoid
Placating Theory pacify workers and reduce industrial
strikes.
unrest or disputes.
Welfare activities aim to create a
Sponsoring community development
Public Relations Theory positive image of the company and
programs.
maintain good public relations.
Welfare is seen as an integral part of
Providing training, health services, and
Functional Theory organizational functioning and
counseling.
employee satisfaction.
 Labour Welfare Agencies in India
Central Various enactments have been promulgated to safeguard the interests of workers, to
Government extend to them economic benefits and social security.

State Governments in India were more or less indifferent to labour welfare, prior to
State
independence. But now various State Governments are very alive to the conditions of
Government
labour and are up and doing for the upliftment of the lots of the workers.

Employers in India today have started realizing that they should identify their interest
Employers with those of the employees. No prudent management can now ignore the interests of
their workers and expect to reap the benefits of higher labour productivity.

Last but not the least important agent for the welfare of
Trade Unions workers is the “Workers’ union.” Educational and cultural
upliftments through trade unions have been made possible.
Social Security
INDUSTRIAL RELATIONS
सामालिक सुरक्षा
औद्योगगक संबंध
 Social Security
• The idea behind the concept of social security is that the state shall be
responsible for protecting its citizens against certain contingencies of life.
• 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.
• As per code on Social Security 2020, "social security" means the measures of
protection afforded to employees, unorganised workers, gig workers and platform
workers to ensure access to health care and to provide income security,
particularly in cases of old age, unemployment, sickness, invalidity, work injury,
maternity or loss of a breadwinner by means of rights conferred on them and
schemes framed, under this Code.
 Initiatives on Social Security
• 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.
• Drawing from the Constitution of India and ILO Convention on Social Security (ratified
by India in 1964), several legislations have been enacted for social security.
• Different legislations on social security have now been merged under code on social
security, 2020.
Laws subsumed in the code
• The Employees’ Compensation Act, 1923
• The Employees’ State Insurance Act, 1948
• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
• The Employment Exchanges (Compulsory Notification of Vacancies) Act,
1959
• The Maternity Benefit Act, 1961
• The Payment of Gratuity Act, 1972
• The Cine Workers Welfare Fund Act, 1981
• The Building and Other Construction Workers Welfare Cess Act, 1996
• The Unorganised Workers’ Social Security Act, 2008.
 Overview of Code
• CHAPTER I- PRELIMINARY (DEFINITIONS) • CHAPTER IX- SOCIAL SECURITY FOR
• CHAPTER II- SOCIAL SECURITY ORGANISATIONS UNORGANISED WORKERS, GIG WORKERS AND
• CHAPTER III - EMPLOYEES' PROVIDENT FUND PLATFORM WORKERS
(PENSION FUND INSURANCE) & DEPOSIT LINKED • CHAPTER X- FINANCE AND ACCOUNTS -
• CHAPTER IV- EMPLOYEES STATE INSURANCE • CHAPTER XI -AUTHORITIES, ASSESSMENT,
CORPORATION COMPLIANCE AND RECOVERY
• CHAPTER V- GRATUITY • CHAPTER XII- OFFENCES AND PENALTIES
• CHAPTER VI - MATERNITY BENEFIT • CHAPTER XIII- EMPLOYMENT INFORMATION
• CHAPTER VII- EMPLOYEE'S COMPENSATION AND MONITORING
• CHAPTER VIII-SOCIAL SECURITY AND CESS IN • CHAPTER XIV- MISCELLANEOUS
RESPECT OF BUILDING AND CONSTRUCTION • 7 SCHEDULES
WORKERS OTHER
 Introduction
A trade union or labour union is a continuing long term association of employees formed
to promote, protect and improve, through collective action, the social, economic and
political interests of its members.

Section 2(h) of Indian Trade Union Act

• Trade union is an combination whether temporary or permanent formed
• Primarily for the purpose of regulating the relation between workmen & employers, workers
& workers or between employers & employers or
• for imposing restrictive conditions or conduct of any trade or business and
• include any federation of two or more trade unions.

Same Definaition u/s 2(zl) of Industrial Relations Code, 2020

Characteristics of trade unions
A trade union is essentially an association of employees belonging to a particular class of
employment, profession, trade or industry.

Voluntary Association: An employee joins the trade union out of his free will. A person
cannot be compelled to join a union.

Common Interest: The member of a trade union have certain matters of common
interest-job security, better
pay and working conditions and so on, which bring them together.

Collective Action: Employees are able to initiate collective action to solve any problem
concerning any particular employee or all the employees.

Rapport with the Management: The officials of the trade union hold talks with the members
of the management concerning the problems of the employees in order to find an
amicable solution.
 Trade Union Classification
As per Membership As per Purpose

Craft union of workers who have ReformistUnion don’t believe in the

similar skills employed in a particular destruction of economic, social and
craft and trade. management structure of the state or
concern but want only to modify them
Industrial union links all craftsmen through negotiation/ peaceful manners.
and skilled workers in any industry.

White collar unions represent Revolutionary Unions seeks to destroy

particular professions, including capitalist industry to abolish the wage
pilots and teachers. system and substitute it with some
other system generally socialist and
General unions include workers with communist.
a range of skills and from a range of
industries.
Formative Stages of Trade Unions
Trade Union has to pass through a very difficult and hostile period in the initial
years. The employers wanted to crush them with iron hands.
Then came the period of agitation and occasional acceptance. When the union
gained strength they started confronting with the employer. This is period of struggle
which continued for long.
Employers were forced to accommodate, tolerate and hesitatingly accept them. Then
came the period of understanding and industry in collective bargaining.
This was followed by fraternal stage where union became matured and employers
started consulting them.
The desired state is the “Fusion Stage” in which joint efforts were required to be made
for union management co-operation and partnership.
Trade Union movement in India
The Trade Union movement in India has emerged due to Industrial Revolution, as a
result of growing complexities of an economic structure of the country.

The first organised labour movement in India was in 1884 by N.M.Lokhande, who was
a factory worker in Bombay who organised an agitation to make representations to the
British appointed Factory Commission.

The period b/w 1904 to 1911 saw tremendous growth in trade unionism. During this period,
Printers’ Union in Bengal, Kamgar Hitwardhak Sabha in Bombay and Postal Clubs in Madras,
Bombay and Calcutta were formed.

Ahmadabad Textile Labour Association was the first federation of the different
occupational unions. It was formed due to the inspiration from Mahatma Gandhiji and
had a close association with him.

Shri. N.M. Joshi is the father of modern trade unionism in India, and he introduced the
Trade Union Bill in the Assembly in 1921.
Phases of Trade Union Movement in India

Pre-1918 Phase

1918-1924 Phase

1925-1934 Phase

1935-1938 Phase

1939-1946 Phase

1947 and Since

 Main Trade Unions in India
Trade Union Year of setup HQ Political Affiliation
All India Trade Union Congress (AITUC) 1920 New Delhi CPI

Indian National Trade Union Congress May 3, 1947 New Delhi Indian National
(INTUC) Congress

Bhartiya Mazdoor Sangh (BMS) July 27, 1955 New Delhi BJP

Centre for Indian Trade Unions (CITU) 1970 New Delhi CPM

Hind Mazdoor Sabha (HMS) Dec. 24, 1948 New Delhi Samajvadi
All India Trade Union Centre (AIUTUC) April 26-27, Kolkata Socialist Unity Centre
1958 of India(Marxist)

Self-employed Women's Association 1972 Ahmedabad

of India (SEWA)
All India Central Council of Trade Union May 1989 NA CPI (M-L)
 Legal Framework of Trade Unions in India
Indian Trade Unions Act, 1926 is the first legislation in India to register, regulate and
promote trade unions in
India.

Indian Trade Unions Act was amended in 1964, by which the word ‘Indian’ was omitted
and the act was rechristened as “The Trade Unions Act, 1926”.

Now, Industrial Relations Code, 2020 contains provisions relating to registration, rights
and liabilities of trade unions.

Registration of a trade union is not mandatory. As the registered trade unions enjoy
various privileges and
immunities, it is better to get the trade union registered.

The members of the registered trade unions are protected from various civil and
criminal liabilities and enjoy immunities and privileges.
 Rights of Registered Trade Union
A registered trade union may impose certain qualifications and restrictions for
admissions subject to the provisions of the Trade Unions Act.
A trade union can represent the employees in any industrial dispute and in case of
individual dispute, with the written authorization of the employee.
A registered trade union, being a legal person, can enter into agreements and contracts
on its own name. A registered trade union can purchase and own movable and
immovable property in its own name.
A trade union is a juristic person. It can sue, argue before any labour courts, authorities
and other courts on
behalf of itself, and on behalf of its members.

Two or more registered trade unions may amalgamate as one trade union with or
without dissolution or division of funds of such unions.
 Duties/Liabilities of Trade Union
A registered trade union has a duty to inform the Registrar of Trade Unions by sending a
notice to that effect as to the change of address of the registered trade union.
The Act imposes on the registered trade union, duty to spend the funds (general fund,
political fund), specifically allotted for the purposes as stated in the provisions of the act.
Every registered trade union must submit every year, to the registrar of trade unions
proper statements and returns.

Whenever any alteration is made in the rules of the registered trade union, a notice
regarding the altered rules must be submitted to the registrar of trade unions.
 What is Green HRM
According to Mandip
The practice of green HR should be translated into the HR processes, such as recruitment, training,
compensation and etc.

✓ Green HRM is referred to all the activities involved in development, implementation and ongoing maintenance of a
system that aims at making employees of an organization Green
✓It refers to the policies, practices and systems that make employees of the organization Green and sustainable use of
resources for the benefit of the individual, society, natural environment, and the business

Anjana Nath defines

Green HR as environment-friendly HR initiatives leading to better
efficiencies, less cost and heightened employee engagement levels.
Meanings of Green in the Context of HRM
 Meanings of Green in the Context of
HRM
Conservationist Conservationist becomes very careful
in the way of using the natural
environment in order to let it last as
long as possible.
❑In other words, he or she does using
the natural environment at the
minimum level so that future
generations will be able to utilize it
❑ Preservationist does keeping the natural environment in its original form and
Preservationist
protecting it from harm, loss, or negative change
 Meanings of Green in the Context of
HRM ❑ Preventing from (or minimizing) contaminating the water, air, atmosphere, etc.
through unpleasant and poisonous substances and wastes
Non - Polluter
❑ In other words he or she becomes a guardian against behaviors and outcomes that
will ultimately endanger the planet/earth where humans and non-humans are living

❑ Maker does creating gardens and looking-like natural places.

Maker ❑ In other words he or she intentionally builds parks and places which have plants, trees,
and grass

❑ When an employee performs above 4 roles, he / she becomes as “Green Employee”

❑ Hence, a Green employee is a nature-lover or an eco-activist
 How to Implement Green HRM
Recruit and select people committed to the environment;

Train and evaluate employees’performance based on environmental criteria;

Implement ways of rewarding individual and collective environmental performance is

remunerated and non-remunerated ways;

Stimulate continuous education in environmental management;

Treat environmental aspects as values of corporate culture; and

Promote interaction between teams in order to deal with environmental problems and strive
for continuous improvement of environmental management activities.
 Strategic Aspect of Green HRM
“The Green products/services • including waste and pollution management, resource replacement,
Portfolio” sustainable design, and adaptive reuse.

“The Green Workforce” • including Human Resource strategies, culture, recruiting and
retention, training, career path development, and diversity.

• including global locations, physical plants, ergonomics, virtual

“The Green Workplace” workplace, green buildings, environmental discharge, waste and
energy, use and source.

“The Green Function/Process • including sustainability applied to traditional functions, enterprise-

Model” wide green process modeling to incorporate green practices and
sustainable-management.

“Green Management and • including board and management accountability, sustainability test,
Governance Principles” compliance, incentives, ethics, reporting, and assurance.
International Human Resource Management
• It refers to the process of managing human resources in multinational
companies or organizations that operate across different countries.
IHRM involves recruiting, training, managing, and developing
employees in a global context, taking into account different cultural,
legal, economic, and social environments.
Key aspects of IHRM include:

• Managing expatriates (employees working outside their home country)

• Understanding and adapting to diverse cultural practices
• Complying with various international labor laws and regulations
• Developing global talent management strategies
• Handling international compensation and benefits
Global Staffing/IHRM Approach
Aspects of the Enterprise Orientation
Ethnocentric Polycentric Regiocentric Geocentric
Global overarching
Regional integration of
strategy on key issues
Uniform strategy across Diverse strategies across strategy, but
HR Strategy but differentiated
units units differentiation across
policies on more local
region
issues
Performance criteria By home country By local subsidiary Coordinator across Global as well as local
Evaluation & Control headquarters management countries in the region standards and control
Little among Little between subsidiary Inflows and outflow
Mainly from
Information & Resource subsidiaries, little & headquarters medium between and among
headquarters to local
flows between subsidiary and to high among headquarters and
subsidiaries
headquarters subsidiaries in region subsidiaries
Host and third country
Best people where they
Staffing mix Home country managers Host country managers national from within the
can be best used
region
Home country managers Totally within subsidiary Managers anywhere
Regional career paths
Career Development developed to work career path and developed to work
and development
anywhere development anywhere
Gain loyalty,
Gain loyalty commitment Gain loyalty and Gain loyalty and commitment and
Purpose of socialization
and understanding of commitment to the commitment to the understanding of the
process
headquarters subsidiary region total firm and its diverse
units
IHRM DIMENSIONS ( P V MORGAN)
Dimension Definition Examples
Categories of employees
based on their nationality
Type of Employees
and relationship to the
countries involved.
Employees who are citizens
A Japanese employee
Host-Country Nationals of the country where the
working in a Toyota factory
(HCNs) subsidiary or branch is
in the USA.
located.
Employees who are citizens A German employee sent by
Parent-Country Nationals of the country where the BMW headquarters in
(PCNs) parent company is Germany to work in the
headquartered. USA.
An Indian employee
Employees who are citizens
Third-Country Nationals working for a French
of a country other than the
(TCNs) company’s subsidiary in
parent or host country.
Canada.
 Core HR activities
Human Resource
related to managing
Activities
employees.
Recruiting and hiring Hiring engineers for a
Procure
employees. new plant.
Assigning employees to
Posting a PCN to a
Allocate various roles or
foreign subsidiary.
locations.
Making effective use of Managing employee
Utilize employees’ skills and productivity and
managing their work. development.
 Classification based on
employee’s nationality in
Countries
relation to home and
host countries.
The country where the
USA for a Japanese
Host foreign operation is
company’s US branch.
located.
The country where the
Japan for Toyota
Home company’s headquarters
headquarters.
is located.
Any country other than
home or host where India, when neither
Other
employees may come home nor host country.
from.
Collective
Bargaining
 Collective Bargaining
Collective bargaining takes place when a number of work people enter into a negotiation
as a bargaining unit with an employer or group of employers.

It occurs when representatives of a labour union meet management representatives to

determine employee’s wages and benefits, to create or revise work rules, and to resolve
disputes or violations of the labour contract.

Collective bargaining is probably the most effective method of resolving industrial

disputes. Perhaps, the term “Collective Bargaining” was identified by Sydney and Beatrice
Webb in 1897.
Features of CB
Negotiation
Phase
 4 Different Approaches of Negotiation
Distributive
Negotiation or This is also called competitive, zero sum, or claiming value approach. This
Win-Lose Approach approach is based on the premise that one person can win only at the
expense of the other.
This negotiation approach is adopted when one negotiating partner feels
Lose-Lose that his own interests are threatened and he does all he can to ensure that
Approach the outcome of the negotiation is not suitable to the interests of the other
party as well.

Compromise This approach provides an outcome which is some improvement over the
Approach lose-lose strategy outcome. To avoid a lose-lose situation, both parties
give up a part of what they had originally sought and settle for something
less than that.
Integrative This negotiation approach is also called as collaborative or creating value
Negotiation or approach. It is superior to all negotiation approaches. It results in both
Win-Win parties feeling that they are achieving what they wanted. It results in
Approach
satisfaction to both parties.
 Theories of Collective Bargaining
Marketing Concept and Agreement as a Contract

It views collective bargaining as a contract for the sale of labor. Employees sell
their individual labor on terms collectively determined on basis of contract. The
trade union’s collective action provided strength to the individual laborer. This is
also called the union approach to collective bargaining.

Governmental Concept and Agreement as Law

As per Prof.
Governmental concept establishes a political relationship admitting the Neil
contractual nature of the bargaining relationship. The contract is viewed as a Chamberlain
constitution, written by the point conference of union and management
representatives in the form of a compromise or trade agreement.

Industrial Relations (managerial) Concept at Jointly Decided Directives

The union joins with the company officials in reaching decisions on matters in
which both have vital interests. When the terms of the agreement fail to provide
the expected guidance to the parties, it is the joint objective, not the terms, which
must control.
• Discipline / अनुशासन
• While a positive aspect of discipline implies a sense of
duty to observe the rules and regulations. It is also called
self-discipline.
• Every act of indiscipline is called misconduct. Illustrative
examples of misconduct is given under model standing
orders, framed as a part of the rules made under this
Industrial Employment (Standing Orders) Act, 1946
• CODE OF CONDUCT / आचार संडहता
Code of discipline forms the Gandhian approach to
industrial relations to bind employees and trade unions to a
moral agreement for promoting peace and harmony.
It was an outcome of the efforts of Guljari Lal Nanda, the
then Union Labour Minister (1957). It was at his instance
that code was formulated. It was formally adopted at 16th
session of Indian labour conference (1958).
It consists of three sets of principles, namely
(a) obligation to be observed by management,
(b) obligations to be observed by trade unions, and
(c) principles binding on both the parties.
Red Hot Stove Rule / लाल गरम स्टोि
लनयम
A grievance is a formal complaint raised by an employee when they
feel they have been treated unfairly, wronged, or subjected to
unsatisfactory conditions in the workplace. It usually relates to issues
like working conditions, treatment by supervisors or colleagues, pay,
discrimination, harassment, or violations of company policies.
In simple terms:
• It's when an employee expresses dissatisfaction or concern about
something at work.
• It often leads to a process where the company investigates and tries to
resolve the issue.
 Yogesh Sir

Model Grievance Procedure / आदशक लशकायत प्रविया

Model Grievance Procedure was formulated in pursuance to the Code of discipline
adopted by the 16th Session of the Indian Labour Conference in 1958.
आदशक शशकायत प्रविया 1958 में भारतीय श्रम सम्मेलन के 16वें सत्र द्वारा अपनाई गई अनुशासन संरहता के
अनुसरण में तैयार की गई थी।
National Commission on Labour 1969 (NCL) took stock of the working of the Model
Grievance Procedure suggested by the Code of Discipline. NCL more or less endorsed the
broad framework of the MGP.
राष्ट्रीय श्रम आयोग 1969 (एनसीएल) ने अनुशासन संरहता द्वारा सुझाए गए आदशक शशकायत प्रविया के
कामकाज का जायजा ललया। एनसीएल ने कमोबेश एमजीपी के व्यापक ढांचे का समथकन वकया।
Commission pointed out that the grievance procedure should be simple, flexible,
less cumbrous, and be on the lines of the Model Grievance Procedure suggested by
the Code of Discipline.
आयोग ने कहा वक शशकायत प्रविया सरल, लचीली, कम बोशझल होनी चारहए तथा अनुशासन संरहता
द्वारा सुझाई गई आदशक शशकायत प्रविया के अनुरूप होनी चारहए।
 Yogesh Sir

Model Grievance Procedure / आदशक लशकायत प्रविया

The model Grievance Procedure provides for five successive time-bound steps
आदशक शशकायत प्रविया में पांच िलमक समयबद्ध चरणों का प्रावधान है।.
 Introduction
Workers participation in management is an essential ingredient of Industrial democracy. The concept of
workers participation in management is based on Human Relations approach to Management

Traditionally the concept of Workers Participation in Management refers to participation of non-managerial

employees in the decision-making process of the organization.

In Germany it is known as co-determination while in Yugoslavia it is known as self-management. ILO has been
encouraging member nations to promote the scheme of Workers’ Participation in Management.

Workers’ participation is also known as ‘labour participation’ or ‘employee participation’ in management.

 Definitions
According to Keith Davis, Participation refers to the mental and emotional involvement of a person in a group
situation which encourages him to contribute to group goals and share the responsibility of achievement.

According to Walpole, Participation in Management gives the worker a sense of importance, pride and
accomplishment; it gives him the freedom of opportunity for self-expression; a feeling of belongingness with the
place of work and a sense of workmanship and creativity.

In the words of Mahatma Gandhi, “Mutual relations of workers and employers should be based upon the
feeling of welfare of one another and not upon the self. It should be based upon mutual cooperation and
sympathy and not upon bargaining.”
 Objectives of WPM
Social Economic
• To reduce labour problems to the
• To increase the production and
minimum
productivity of the enterprise and of the
• To create healthy atmosphere in the
workers.
enterprise
• To increase the earnings of workers.
• To bring industrial peace
• To reduce the rate of absenteeism and
• To develop a spirit of mutual faith and
labour turnover.
co-operation

Psychogical Industrial Democracy

• Change in the attitude of the workers.
• Both the workers and management
• They will think themselves part and
realise their duties and responsibilities.
parcel of the unit.
• They recognise and honour the
• Workers will accept their responsibility
achievements of one another.
in an activity
 Works Committee
Establishment of works committees in establishment employing 100 or more workers were made compulsory
by the Industrial Disputes Act 1947 to introduce the system of labour management participation.

Such committees consist of equal number of representatives of workers and employer. These committees are
consultative bodies.

The main purpose of such committees is to provide measures for securing and preserving amity and good
relations between the employer and employees.

Indian Labor Conference in its 17th session held in 1959 discussed the functions of the works committee and
approved a list of functions which could be assigned to the works committees.
 WPM in India
WPM can be dated as far back as 1920 when Mahatma Gandhi suggested participation of workers in
management.

While supporting the need for works committees, the Royal Commission on Labour (1929) suggested that, to
promoting industrial harmony and to avoid misunderstanding and settle disputes.

First major step in the direction of workers’ participation in management in India was the enactment of the
Industrial Disputes Act, 1947.

Industrial Policy Resolution, 1948 advocated WPM by suggesting that labour should be in all matters concerning
industrial production.

First Five-Year Plan and the successive plans emphasised the need for workers’
participation in management.
 Study Group on WPM
GOI set up a ‘Study Group on Workers’ Participation in Management’, in 1956, consisting of representatives of
the government, employers, and workers to examine the system of WPM in different countries.

Its recommendations were accepted by 15th Indian Labour Conference held in July 1957. The Conference
appointed a 12 member sub-committee to look into further details of the scheme.

It drew up a “Draft Model Agreement” between labour and management for the establishment of the Joint
Management Councils (JMCs).

Up to July 1975, there had been three forms of workers’ participation in management introduced in India:
Works Committees, Joint Management Councils and Workers-Directors (public sector) on Boards of Directors.
 Constitutional Amendment
In 1975, during the Emergency, the Constitution was amended by the introduction of Article 43A.

The purpose of this amendment was to raise productivity, promote industrial peace and create a sense of
involvement amongst the workers.

The inserted article that formed part of the Directive Principles of State Policy provided that “The state shall
take steps by suitable legislation or in any other way to secure participation of workers in the management of
undertakings, establishments or other organizations engaged in the industry”.
 High Powered Committee under Sachar
In June 1977, the Government of India set up a high-powered Expert Committee on Companies and MRTP Acts
under the Chairmanship of Rajinder Sachar.

Sacher Committee in its report observed that majority of the organizations are in favour of workers participation
in Share Capital. It also made useful recommendations on worker representation on board of directors.

Janata Government also set up a “Committee on Workers’ Participation Management and Equity” in September
1977 under the Chairmanship of Ravindra Varma which submitted its report in March 1979.

The report showed that the majority of the members favoured adoption of a three-tier system of
participation, viz., at the shop, plant and corporate or board levels.
 New Scheme of Worker’s Participation
In the year 1975 the Government formulated a scheme of workers’ participation in industry at shop floor and
plant level. The scheme was applicable to such units as were employing 500 or more workers.

The scheme provided for setting up of shop councils at the shop/departmental levels and joint councils at the
enterprise levels. Each council was to consist of an equal number of representatives of employers and workers.

The employer was to determine the number of members in each council, but he had to take the decision in
consultation with the unions.

The shop councils were required to meet as frequently as necessary, and at least once in a month. The joint
council was to meet at least once in a quarter.

Functions - Discussing production and productivity, achieving efficiency, eliminating

wastage, arresting absenteeism, safety measures, physical condition of work etc.
 Another Scheme of Worker’s Participation
In 1977, Government of India introduced another scheme for participation for commercial and service
organizations having large scale public dealings such as hospitals, post and telegraphs, railway stations etc.

The scheme was to cover organizations employing 100 or more persons in these activities. However, the
organizations/services desiring to apply this scheme to units with lesser employment were free to do so.

Under this scheme unit councils and the joint councils were to be set up. The objective was to promote
confidence between the workers and the management.

Another scheme was introduced in December 1983. This scheme of workers participation in management was
made applicable to central public sector undertakings.

As in the 1975 scheme this scheme too was to operate at the level of the shop floor
and the plant level.
 Causes of Slow Progress of WPM
• The attitude of apathy and hostility of the employers and
workers.
• Lack of the feeling of co-operation and co-ordination among
workers.
• Only a few representatives of workers can participate in the
process of management. Therefore, the management cannot get
the benefit of the ability of all the workers.
• Defective leadership of labour unions.
• Failure of the scheme in the enterprise in which it has
been implemented.
• Lack of a strong and effective labour union and multiplicity
of labour unions in most of the enterprises.
• Lack of co-ordination and unity among different labour unions.