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HRM Notes

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MODULE 1

INTODUCTION TO HRM

DEFINITION

HRM is employee management with an emphasis on employees as assets of the business. In this
context, employees are sometimes referred to as human capital. As with other business assets, the
goal is to make effective use of employees, reducing risk and maximizing return on investment (ROI).

NATURE

The nature of human resource management (HRM) includes the following characteristics:

1. People-centered: HRM is concerned with all employees, from the bottom to the top level,
and values people both as individuals and as a group.
2. Pervasive: HRM is a broader function that is spread throughout the organization, and
manages all types of people from lower level to top level departments.
3. Action-oriented: HRM is an action-oriented, continuous process.
4. Future-oriented: HRM is future-oriented and development oriented.
5. Interdisciplinary: HRM is an interdisciplinary function.
6. Enhances employee relations: HRM enhances employee relations.

SCOPE

1. Recruitment and selection


2. Training and development
3. Performance management
4. Compensation and benefits
5. Employee relations
6. Payroll management
7. Grievance handling
8. Legal procedures
9. Organizational development
10. Safety
11. Motivation
12. Communication
13. Policy administration

OBJECTIVES

The objectives of Human Resource Management (HRM) are goals set to manage and guide a
company's workforce effectively. Some objectives of HRM include:

1. Achieving organizational goals


2. Work culture
3. Team integration
4. Training and development
5. Employee motivation
6. Workforce empowerment
7. Retention
8. Data and compliance
9. Policy governance

FUNCTIONS OF HRM

1. Recruitment and hiring


2. Onboarding
3. Training and development
4. Compensation and benefits
5. Performance management
6. Managing employee and employer relationships
7. Creating a rewarding company culture
8. Overseeing disciplinary actions
9. Making safety requirements a part of everyday business operations
10. Ensuring that government regulations are followed

HR MANAGER

ROLES

1. Administrative: Coordinating administrative activities related to personnel, such as


A. Developing recruitment strategies
B. Implementing systems for managing staff benefits, payroll, and behavior
C. Onboarding new employees
2. Employee advocate: Serving as a link between an organization's management and its
employees
3. Strategic planner: Consulting with top executives on strategic planning
4. Change manager: Working with different managers in the research, planning, training, and
development of workforce culture
5. Talent acquisition: Overseeing talent acquisition, learning and development, career
progression, employee education, and workplace policies
6. Performance reviews: Facilitating the performance review process and helping employees if
they face any challenges
7. Disciplinary meetings: Overseeing employee disciplinary meetings, terminations, and
investigations

RESPONSIBILITIES

1. Hiring and recruitment


2. Creating job descriptions
3. Planning and schedules
4. Onboarding and training
5. Documenting rules and regulations
6. Performance management
7. Developing workplace atmosphere
8. Conflict resolution
9. Compensation and benefits
10. Succession planning
11. Retention management
12. Employment laws
13. Worker protection
14. Developing recruitment strategies
15. Implementing systems for managing staff benefits, payroll, and behavior
16. Employee relations
17. Talent management

CURRENT TRENDS IN HR

1. Setting the Hybrid Work Model for Collaboration

With things back on track post-pandemic, the workplace is evolving into a more suitable approach
for employees and their productivity — the hybrid work model. It’s an employee-centric flexible
work model with a mix of in-office and remote work.

2. “Human” Leadership

A recent HBR article about the distinction between managers and leaders quotes, “CEOs need to
manage, not just lead. Middle ‘managers’ need the skills of leadership, too.”

Now more than ever, following the shifts the workplace has seen, the importance of an effective
leader and manager has grown by leaps and bounds. The current scenario demands empathetic,
adaptive and authentic leaders for their employees.

3. Working in the Metaverse

With technological advances, the metaverse workplace is on a quick path to becoming an everyday
reality. But how does that work? The metaverse workplace offers virtual reality environments that
let you work in a customized immersive space from anywhere in the world.

4. Change Management

What have the past few years taught us about dealing with unforeseen circumstances at the
workplace? The answer is change management.

Change management systematically deals with changes in an organization’s goals, processes or


technologies. It aims to implement efficient strategies to execute changes, control them and help
people adapt to them with minimal hindrances.

5. DEI in the Spotlight

Diversity, equity and inclusion are buzzwords in most organizations and rightfully so. DEI initiatives
are a part of addressing bias, discrimination, harassment, unfair wages and other issues in the
workplace.The need for DEI has also increased with the evolving work models — from in-person to
virtual and hybrid environments.
MODULE 2

HR PLANNING

Human resource planning (HRP) is a process of systematically planning a company's employee assets
to meet the demands of the company in the present and future. HRP is a continuous process of
identifying what the human resource needs of a company are and how to get the best employees
that fit those needs.

The purpose of HRP is to:

1. Ensure the best fit between employees and jobs


2. Avoid manpower shortages or surpluses
3. Balance the flow of employees
4. Ensure that the business has the right people with the appropriate skills and ability to build a
strong workforce
5. Make sure that a business has the right type of talent spread throughout its departments

HR RECRUITMENT

Human resources (HR) recruitment is the process of identifying and hiring employees for an
organization. It is one of the core responsibilities of HR.

The recruitment process involves:

1. Creating job listings


2. Screening candidates
3. Setting up interviews
4. Interviewing candidates
5. Selecting candidates
6. Hiring candidates
7. Onboarding employees
8. Developing a talent pipeline

Sources of Recruitment:

Internal sources

1. Existing workforce
2. Employee referrals
3. Past employees
4. Company career websites

External sources

1. Online job boards and job search engines


2. Print advertising
3. TV/radio ads
4. Job fairs
5. Social media platforms
6. Placement drives

Other sources of recruitment include:

1. Direct recruitment
2. Casual callers
3. Employment exchange
4. Placement agencies and management consultants
5. Professional networking sites
6. Notifying vacancies to educational, professional, and technical institutions

HR SELECTION

In human resource management, selection refers to choosing the right candidates from the pool of
eligible candidates to fill vacant job positions in the organization. The goal of the selection process is
to identify the most qualified candidates for open positions within a company.

The selection process typically includes:

1. Reviewing applications or resumes


2. Interviewing candidates
3. Making a final decision
4. Considering many factors, such as a candidate's qualifications, experiences, skills, and overall
attitude

JOB ANALYSIS

Job analysis is a process in human resource management (HRM) that helps organizations understand
job roles, responsibilities, and requirements. It helps with:

Recruitment, Selection, Training, Performance management, Career development, Choosing


compensation and benefits.

Job analysis involves:

1. Determining the duties and responsibilities of a job


2. Deciding the qualifications, skills, and knowledge required for an employee to perform a
particular job
3. Preparing job descriptions and specifications

Job analysis can include:

1. Writing the job description


2. Determining the job family
3. Determining the job zone
4. Determining the title
5. Job title
6. Job summary
7. Job duties
8. Knowledge, skills, and abilities (KSAs)
9. Education and experience
10. Physical demands
11. Work environment
12. Equipment used
13. Relationships with others
14. Performance standards

Common methods for job analysis include:

1. Observations
2. Interviews
3. Questionnaires
4. Specialized methods of analysis

INTERVIEW

The interview process in Human Resource Management (HRM) includes the following steps:

1. Recruiting
2. Establishing criteria
3. Developing questions
4. Setting a timeline
5. Connecting schedules

The interview is an initial screening to ensure that you are the right candidate for the role. The
interview includes questions such as:

General information about previous job roles

1. Core skills
2. Qualifications
3. Weaknesses
4. Salary expectations
5. Leadership skills and experience
6. Background
7. Communication skills

Here are some types of selection interviews in HRM:

1. Medical examination
Ensures that the candidate is physically fit for the job
2. Background checks
Can be a prerequisite before applying, and can include confirmation of good conduct or
other criminal record checks
3. Preliminary screening
Helps the manager of the organization to shortlist the candidates and eliminate those who
are not suitable for the job
4. Preliminary interview
A short duration interaction with the candidate to get basic information about the candidate
and to check if they possess the required skills and aptitude for the job
5. Employment test
Assumes that the applicant already has the skills they are being hired to perform
6. Resume screening
A preliminary barrier that lets you determine if a candidate has the minimum qualifications
for the job they are applying for
7. Final selection
The interview may be held either in two stages – preliminary and final – or in one stage only

IMPORTANCE OF INDUCTION AND ORIENTATION

Induction and orientation are important steps in the onboarding process. The goal of induction is to
make new employees feel welcome, informed, and prepared to contribute to the company's
success. The goal of orientation is to provide new employees with the information they need to be
successful in their new role.

Induction and orientation can have several benefits, including:

1. Reduces employee turnover


2. Ensures operational efficiency
3. Makes the new employee feel respected
4. Promotes communication between the supervisor and the new employee
5. Creates clearly defined roles, job requirements, and expectations
6. Answers questions before they arise
7. Anticipates conflict based on historical issues

Induction and orientation can also help:

1. Bring an agreement between organization goals and the personnel goals of the newcomers
2. Build up the new employee's confidence in the organization and in himself
3. Guide, develop, motivate, inspire, satisfy, and achieve the loyalty of the new employees in
the organization
4. Help new employees grow and reach their full potential
MODULE 3

TRAINING AND DEVELOPMENT

Human resources (HR) training and development is a process that helps employees improve their job
performance and enables future career growth. It includes various tools, instructions, and activities
designed to improve employee performance.

What is HR training and development?

1. Training: Refers to acquiring specific knowledge and skills for a particular job or task.
2. Development: Refers to experiences that make people better.
3. Why is HR training and development important?
4. It helps employees acquire the knowledge, skills, and attitude that helps improve their job
performance.
5. It enables future career growth.
6. It sets up a benchmark of performance which employees are expected to achieve in a
financial year.
7. It teaches employees new skills such as team management, communication management,
and leadership behavior.
8. It improves team bonding.

Strategies

1. Teaching employees how to use new technology


2. Rating individual and group performances
3. Using evaluations to develop more efficient processes
4. Teaching employees how to master the hiring process

METHODS OF TRAINING
ASSESSMENT OF TRAINING METHODS

There are several methods for assessing training in human resources management (HRM):

1. Training evaluation: The process of collecting outcomes to determine if training is effective


2. Kirkpatrick Model: Analyzes and evaluates the effectiveness of employee training programs
3. Phillips ROI Model: Links training program expenses to real results
4. Anderson evaluation method: Assesses effectiveness at an organizational level
5. Analyzing training needs: Compares employees' current level of competency to the required
standard
6. Feedback: Constructive feedback motivates trainers and helps understand areas that might
need improvement
7. Identify training KPIs: Key performance indicators (KPIs) help measure employees' progress
toward a goal
8. Measure learning: Assesses if learning actually took place

PROMOTION

In human resource management (HRM), promotion is the upward movement of an employee to a


higher job within an organization. Promotions can involve:

1. Increased salary
2. Increased responsibility
3. Increased status
4. Increased job grade or designation

Promotion can be temporary or permanent, depending on the needs of the organization. It can also
have motivational value for employees, elevating their status and power within the organization.

There are three main types of promotion:

1. Vertical promotion
An upward movement of an employee to more senior positions, higher pay, and more
responsibilities. For example, a rank-and-file employee becoming a manager, or moving
from a Manager to Director, or Director to C-level Executive.
2. Horizontal promotion
Rewards an employee with a pay increase but little to no change in responsibilities.
3. Dry promotion
Involves all the responsibility of a new title, but without the benefits that come with it. For
example, a boost in responsibility and title without a pay raise.

There are many bases for promotion, including:

1. Seniority: Length of service


2. Merit: Performance
3. Educational and technical qualification
4. Potential for better performance
5. Career and succession plan
6. Vacancies based on organisational chart
7. Motivational strategies like job enlargement

TRANSFER

Transfer is a process of placing employees in positions where they are likely to be more effective or
where they are to get more job satisfaction. In transfers, there is no change in the responsibility,
designation, status or salary.

DEMOTION

A demotion is a compulsory reduction in an employee's rank or job title within the organizational
hierarchy of a company, public service department, or other body. A demotion may also lead to the
loss of other privileges associated with a more senior rank and/or a reduction in salary or benefits.

Reasons:

1. Poor performance
2. Lack of skills
3. Disciplinary action
4. Reorganization
5. Elimination of position
6. Redundancies
7. Breach of contract
MODULE 4

PERFORMANCE MANAGEMENT SYSTEM

A performance management system (PMS) is a tool used by HR teams to measure and analyze
employee performance. The system helps organizations enhance productivity by improving
employee performance over time.

A PMS typically covers: Performance appraisals, Employee development.

A PMS monitors and tracks employee job performance consistently and accurately. The system uses
a combination of technologies and methodologies to ensure that employees are aligned with the
business's strategic objectives and make valuable contributions towards them.

The key to performance management is employee involvement and regular, productive feedback.

The four elements of performance management are:

1. Purpose is well defined


2. Outcomes are well designed
3. Accountability is nurtured
4. Teams are your leverage point

Applications:

A performance management system (PMS) is a structured approach for measuring employee


performance. It can be used to:

1. Communicate organizational goals


2. Track and evaluate performance results
3. Identify training needs
4. Define career paths
5. Set and track clear goals
6. Reduce micromanagement
7. Build autonomy and accountability

ORGANIZATIONAL PERFORMANCE

Organizational performance is how well an organization is doing and how much of its daily tasks and
set objectives it successfully completes. It's a vital aspect of strategic management.

Organizational performance is measured by comparing an organization's actual outputs or results


with the intended ones. For example, a firm's financial performance can be gauged by looking at its
return on assets and return on investment.

Organizational performance can be defined as:

1. How well an organization is doing to reach its vision, mission, and goals
2. The ability of an organization to reach its goals and optimize results
3. A company's ability to achieve goals in a state of constant change
Some key elements of high performance organizations include:

1. Organizational culture
2. Strategic direction
3. Collaborative leadership
4. Self-organising teams
5. Creative and rational thinking processes

PERFORMANCE APPRAISAL

A performance appraisal is a systematic process of measuring an employee's performance against


predefined attributes. It's also known as an annual review, employee appraisal, performance review,
or evaluation.

A performance appraisal evaluates an employee's:

1. Personality
2. Skillset
3. Knowledge about the role
4. Technical know-how
5. Attitude
6. Punctuality
7. Strengths and weaknesses
8. Relative worth to the organization
9. Future development potential
10. Skills
11. Achievements
12. Growth

Performance appraisals have several uses, including:

1. Feedback: Provide feedback to employees on their performance


2. Modify behavior: Help employees modify their behavior toward more effective working
habits
3. Identify strengths and weaknesses: Identify employee strengths and weaknesses
4. Support career growth: Create career growth, increase employee engagement, and improve
performance
5. Determine training: Help determine training needs
6. Clarify expectations: Clarify expectations
7. Evaluate goals: Evaluate goals
8. Provide documentation: Provide documentation
9. Succession planning: Support succession planning
10. Compensation: Support compensation and reward decisions
11. Administrative decisions: Inform administrative decisions such as pay, promotion, and
redundancies
12. Learning and development: Support learning and development purposes
Different Methods of Appraising Employee Performance:

1. Management by objectives
A method where specific management goals are set and then used as a standard for
performance appraisal.
2. Degree feedback
A method that helps get a collective unbiased understanding of the employees' performance
and competencies.
3. Critical incidents
A method of collecting incidents from the managers or domain experts pertaining to the KPIs
of the employee.
4. Behaviorally anchored rating scales
Also known as BARS, the evaluation and appraisal are done on the basis of behavioral
examples.
5. General appraisal
A method where the employee and his supervisor will interact directly to know about
individual performance and contribution of the organization.
6. Rating scales
A method that rates employees on a fixed scale as per the qualities they are required to
possess.
7. Psychological appraisal
A method that is generally more future-focused as opposed to reviewing the past
performance of the employee.

CAREER SUCCESSION PLANNING

Career succession planning is a process that identifies and develops employees who can fill key
positions in an organization when they become vacant. It is a subset of career management.

Career succession planning involves:

1. Identifying key areas and positions


2. Identifying capabilities for key areas and positions
3. Identifying interested employees and assessing them against capabilities
4. Developing and implementing succession and knowledge transfer plans
5. Evaluating effectiveness
6. Identifying, nurturing, and training new leaders for future requirements
7. Motivating employees to work on organizational needs

Succession planning focuses on the organization's needs, while career development motivates
employees to work on organizational needs.
MODULE 5

COMPENSATION

Compensation refers to any payment given by an employer to an employee during their period of
employment. In return, the employee will provide their time, labor, and skills. This compensation
can be in the form of a salary, wage, benefits, bonuses, paid leave, pension funds, and stock options,
and more.

WAGE

A 'wage' (or pay) is the remuneration paid, for the service of labour in production, periodically to an
employee/worker. “Wages” usually refer to the hourly rate or daily rate paid to such groups as
production and maintenance employees (“blue-collar workers”).

SALARY

Salary is defined as the decided monetary amount that an employer offers an employee in lieu of the
services offered by the employee. This amount of money is revised on periodic intervals on the basis
of the employee's performance.

OBJECTIVES OF SALARY AND WAGE ADMINISTRATION

The objectives of wage and salary administration include:

1. Recruiting: Recruiting people for a firm


2. Controlling payrolls: Controlling payrolls
3. Satisfying people: Satisfying people, reducing turnover, grievances, and frictions
4. Motivating people: Motivating people to perform better
5. Maintaining public image: Maintaining a good public image
6. Keeping up with production costs: Keeping abreast wage and salary rates with production
cost
7. Minimizing labor turnover: Minimizing labor turnover due to pay disparity
8. Increasing employee satisfaction and morale: Increasing employee's satisfaction and morale
9. Learning about perks and benefits: Learning about the trend of perks and benefits in the
market

Other objectives include:

1. Understanding wage differentiations


2. Examining the competitiveness of entry level employees
3. Establishing hiring rates favorable to the community
4. Maintaining equity
5. Maintaining competitiveness in the market
6. Optimizing employee and employer interest
FACTORS/CRITERIA IN DETERMINING PAY RATES/WAGE AND SALARY

1. Ability to pay
2. Demand and supply
3. Prevailing market rates
4. Cost of living
5. Bargaining of trade unions
6. Productivity
7. Government regulations
8. Cost of training
9. Alignment of attributes and role
10. Commission
11. Bonus
12. Wage laws
13. Personal perception of wage
14. Skill levels available in the market
15. Individualize employee pay based on unique job requirements and personal qualifications

MECHANISM AND METHODS OF WAGE AND SALARY DETERMINATION IN INDIA

In India, there are several methods for determining wages and salaries:

Committee Method

1. The appropriate government sets up committees and sub-committees


2. These committees hold enquiries and make recommendations for the fixation and revision
of minimum wages
3. The appropriate government fixes/revises the minimum wage in respect of the concerned
scheduled employment by notification in the Official Gazette

Notification Method

1. The appropriate government considers the advice of the Committees/Sub-committees


2. The appropriate government also considers all the representations received by the specified
date

The Minimum Wages Act, 1948 states that there are two methods for fixing or revising minimum
wages: Committee Method, Notification Method.

The revision of minimum wages should not exceed an interval of five years.

In all other areas of employment, the respective state government establishes the minimum wage.
The wage rate may be fixed daily, hourly, or even monthly.

Other factors that have a bearing on the formulation of wage/salary levels include:

1. Cost of living
2. Productivity
3. Prevailing wage rates
MODULE 6

INDUSTRIAL RELATIONS

“Industrial Relations” refers to all types of relations between employers and workers, be they at
national, regional or company level; and to all dealings with social and economic issues, such as
wage setting, working time and working conditions.

Importance of IR

1. Forster Industrial Peace:


Under the mechanism of IR, both employees and managers discuss the matter and consult
each other before initiating any actions. Doubts, if any, in the minds of either party are
removed. Thus, unilateral actions that prop confusion and misunderstanding disappear from
the scene. In this way, IR helps create a peaceful environment in the organisation. Peace, in
turn, breeds prosperity.
2. Promote Industrial Democracy:
Industrial democracy means the government mandated worker participation at various
levels of the organisation with regard to decisions that affect workers. It is mainly the joint
consultations, that pave the way for industrial democracy and cement relationship between
workers and management. This benefits the both. The motivated workers give their best and
maximum to the organisation, on the one hand, and share their share of the fruits of
organisational progress jointly with management, on the other.
3. Benefit to Workers:
IR benefits workers in several ways. For example, it protects workers against unethical
practices on the part of management to exploit workers by putting them under inhuman
working conditions and niggardly wages. It also provides a procedure to resolve workers’
grievances relating to work.
4. Benefit to Management:
IR protects the rights of managers too. As and when workers create the problem of
indiscipline, IR provides mangers with a system to handle with employee indiscipline in the
organisation.
5. Improve Productivity:
Experiences indicate that good industrial relations serve as the key for increased productivity
in industrial organisations. Eicher Tractors, Alwar represents one such case. In this plant,
productivity went up from 32 per cent to 38 per cent between 1994 and 1997. This increase
is attributed to the peaceful IR in the plant.

Objectives of IR

1. Establishing industrial peace


2. Protecting the interests of both workers and management
3. Avoiding industrial disputes
4. Raising production capacity
5. Establishing industrial democracy
6. Minimizing labor turnover rate and absenteeism
7. Developing an effective communication channel
8. Improving living and working conditions for employees
9. Resolving workers' issues through collective bargaining
10. Regulating productivity
11. Developing and encouraging trade unions
12. Providing an opportunity for workers to participate in management and decision making
13. Reducing wastage of man, material, and machines

Main Aspects of IR

1. Relationship between employer and employee


2. Maintenance of industrial peace
3. Avoidance of industrial strife
4. Development of industrial democracy
5. Collective bargaining
6. Workers' participation in management
7. Employee relations
8. Role of trade unions
9. Sharing decision-making with employees
10. Promoting and developing healthy labor-management relations
11. Raising productivity by reducing high labor turnover and absenteeism
12. Resolving industrial disputes

Causes of Poor IR

1. Economic causes: Poor wages and working conditions


2. Organizational causes: Faulty communication systems, dilution of supervision and command,
non-recognition of trade unions, unfair practices, violation of collective agreements and
standing orders
3. Managerial causes: Autocratic managerial attitude, defective labor policies
4. Other causes: Inactive trade unions, poor organizational climate, dangerous workplaces,
behavior of supervisor, trade union rivalries, indiscipline

Theoretical Perspectives on IR

1. Pluralist perspective
In pluralism, the organization is perceived as being made up of powerful and divergent sub-
groups, each with its own legitimate interests and loyalties and with their own set of
objectives and leaders. In particular, the two predominant sub-groups in the pluralist
perspective are the management and trade unions. The pluralist perspective also supports
that conflict is inherent in dealing with industrial relations since different sub-groups have
different opinions in the day-to-day operations. Consequently, the role of management
would lean less towards enforcing and controlling and more toward persuasion and
coordination. Trade unions are deemed legitimate representatives of employees, conflict is
resolved through collective bargaining and is viewed not necessarily as a bad thing and, if
managed, could, in fact, be channeled towards evolution and positive change.
2. Unitarist perspective
In unitarism, the organization is perceived as an integrated and harmonious whole with the
idea of "one happy family" in which management and other members of the staff all share a
common purpose by emphasizing mutual co-operation. Furthermore, unitarism has a
paternalistic approach: it demands loyalty of all employees and is managerial in its emphasis
and application. Consequently, trade unions are deemed unnecessary since the loyalty
between employees and organizations are considered mutually exclusive, and there cannot
be two sides of industry. Conflict is perceived as destructive and[citation needed] the result
of poor management.
3. Radical or critical perspective
This view of industrial relations looks at the nature of the capitalist society, where there is a
fundamental division of interest between capital and labour, and sees workplace relations
against this background. This perspective sees inequalities of power and economic wealth as
having their roots in the nature of the capitalist economic system. Conflict is therefore seen
as a natural outcome of capitalism, thus it is inevitable and trade unions are a natural
response of workers to their exploitation by capital. Whilst there may be periods of
acquiescence, the Marxist view would be that institutions of joint regulation would enhance
rather than limit management's position as they presume the continuation of capitalism
rather than challenge it.

TRADE UNIONS

A trade union is an organization of workers that aims to improve their employment conditions.
Trade unions are also known as labor unions.

Trade unions are formed by workers in a particular trade, industry, or company. They work to
improve pay, benefits, working conditions, and social and political status through collective
bargaining. Trade unions can also help with issues like fairness of pay, good working environment,
hours of work, and benefits.

Trade unions represent workers' rights and interests to their employers. For example, they might
make agreements providing for the deduction of union subscriptions from members' wages, who is
to represent workers in negotiations, and how often meetings will take place.

Nature of Trade Unions

1. Membership: Trade unions are made up mainly of workers.


2. Autonomy: Trade unions are independent of any employer.
3. Advocacy: Trade unions advocate for and engage in collective bargaining on behalf of the
working class.
4. Guidance: Trade unions offer guidance to their members who have issues at work.
5. Negotiation: Trade unions negotiate better pay and working conditions.
6. Interests: Trade unions protect and advance the interests of their members in the
workplace.
7. Link: Trade unions act as a link between the management and the workers.
Problems Faced by Trade Unions

1. Leadership: Some unions are politically influenced.


2. Financial troubles: Unions may have financial troubles.
3. Small size: Unions may be small.
4. Multiplicity of unions: There may be many unions.
5. Intra-union rivalry: Unions may have internal rivalries.
6. Politicization: Unions may be politicized.
7. Illiteracy: Unions may face illiteracy.
8. Apathy of workers: Workers may be apathetic.
9. Role of management: Management may need to discuss with people who have nothing to
do with the organization.
10. Lack of democracy: Unions may lack democracy.
11. Loss of person days: Strikes and lock outs may lead to loss of person days.
12. COVID-19: The COVID-19 crisis has exposed and aggravated existing challenges.
13. Changing political and economic base: Unions may face a changing political and economic
base.

Measures to Strengthen Trade Unions

1. Maintain unity
2. Freedom from political influence
3. Workers education
4. Adequacy of funds
5. Welfare activities for workers
6. Encourage small unions to merge with stronger units
7. Improve the finances of trade union by collecting subscriptions regularly from the members
8. Make it compulsory for all workers to become members
9. Increase the number of members required to form a trade union from 7 to 50% of the
employees of an organization

INDUSTRIAL DISPUTE

An industrial dispute is a disagreement between employees and employers, or between employers


and workmen, or between workmen and workmen. This disagreement is connected to the
employment or non-employment of the terms of employment or the conditions of work of any
person.

Causes:

1. Pay and conditions: Issues relating to compensation, such as wages, bonus, allowances, and
working conditions
2. Workload: Job security, health, and safety
3. Contract interpretation: Disagreements over the interpretation of contracts
4. Work practices: Changes in work practices
5. Strikes: A group of workers quitting work to pressure their employer to accept their
demands
6. Trade unions: A disagreement between an employer and employees' representative, usually
a trade union, over pay and other working conditions
7. Layoffs: Retrenchment or layoff of workers without any reason
8. Indiscipline and violence: Multiplicity of trade unions in industries and rivalry between them
is responsible for employee's disunity

Types of ID

1. Interest Disputes:The interest here refers to gains. Therefore, the conflicts concerning the
economic or non-economic interests of the employees, such as increasing the remuneration,
working conditions, job security and other benefits are called interest disputes.
2. Recognition Disputes: The trade unions often enter into a dispute with the management
during negotiation or collective bargaining for the benefit of its member employees.
Sometimes, for these negotiations, the management denies identifying the trade unions.
Even when there are many trade unions in an organization, each one of them struggles to
get recognized by the management.
3. Grievance Disputes or Rights Disputes: The conflicts concerning the employee’s rights and
legal issues with the management are termed as grievance disputes. It includes promotions,
work duration, leaves allowed, over time, fringe benefits, safety and security.
4. Unfair Labour Practices Disputes: The disputes over the unethical treatment of the
management towards the labour such as discriminating them for holding membership of
trade union, restricting communication, employing new workers during strikes and denial to
bargain are called unfair labour practices disputes.

Methods of Settlement of ID

1. Conciliation:
In simple sense, conciliation means reconciliation of differences between persons.
Conciliation refers to the process by which representatives of workers and employers are
brought together before a third party with a view to persuading them to arrive at an
agreement by mutual discussion between them. The alternative name which is used for
conciliation is mediation. The third party may be one individual or a group of people.
2. Arbitration:
Arbitration is a process in which the conflicting parties agree to refer their dispute to a
neutral third party known as ‘Arbitrator’. Arbitration differs from conciliation in the sense
that in arbitration the arbitrator gives his judgment on a dispute while in conciliation, the
conciliator disputing parties to reach at a decision.
3. Adjudication:
The ultimate legal remedy for the settlement of an unresolved dispute is its reference to
adjudica-tion by the government. The government can refer the dispute to adjudication with
or without the consent of the disputing parties. When the dispute is referred to adjudication
with the consent of the disputing parties, it is called ‘voluntary adjudication.’ When the
government herself refers the dis-pute to adjudication without consulting the concerned
parties, it is known as ‘compulsory adjudication.
MODULE 7

HEALTH HAZARDS

1. Physical hazards: These can include noise, radiation, vibration, heat, and cold stress.
2. Chemical hazards: These can include exposure to toxic substances such as fumes, dusts, and
gases.
3. Biological hazards: These can include exposure to infectious agents.
4. Psychosocial hazards: These include risks to the mental and emotional well-being of
workers, such as feelings of job insecurity, long work hours, and poor work-life balance.
5. Ergonomic hazards: These can result from repetitive motions, awkward postures, and heavy
lifting.

SAFETY HAZARDS

1. Biological hazards: These can be caused by bacteria, fungi, viruses, microorganisms, and
toxins.
2. Chemical hazards: These can be caused by exposure to chemical preparations in any form
(solid, liquid, or gas).
3. Physical hazards: These can be caused by factors, agents, or circumstances that can cause
harm without or with contact.
4. Ergonomic hazards: These can be caused by bad posture, not using dollies or other
mechanical assistance, and repetitive or awkward lifting/movement.

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