2.

0 Human Resource Management

Human resource management is the management of an organization's workforce. It is responsible for the
attraction, selection, recruitment, training, assessment, and rewarding of employees, while also
overseeing organizational leadership and culture and ensuring compliance with employment and labor
laws.

2.1 Recruitment, Selection and Training

2.1.1 Recruitment

Recruitment is the process of identifying that the organization needs to employ someone up to the point
at which application forms for the post have arrived at the organization.

Recruiting individuals to fill particular posts within a business can be done either internally by recruitment
within the firm, or externally by recruiting people from outside.

Advantages of internal recruitment

1. Reduced recruiting costs; there are costs associated with recruiting outside of the company's talent
pool.
2. Reduced Training Time; Internal candidates do not need orientation and tend to only need training on
specific tasks related to the new responsibilities of the promotion.
3. Increased Employee Moral; Rewarding an existing employee with a promotion shows the rest of the
team that with hard work, upward movement is a real possibility.
4. Reduced risks; the strengths and weaknesses of an insider will have been assessed. There is always a
risk attached to employing an outsider who may only be a success 'on paper'.
Disadvantages of internal recruitment

1. Small pool of workers to choose from.

2. Less opportunity to bring new skills, idea and experience into the organization (inbreeding)
3. Lack of ownership of tasks due to employee expectation of moving on to another job
4. Lack of stability in work teams due to team member regularly moving to other positions
5. Internal politics will occur (e.g., possible discontent of rejected applicants; new subordinates discount
new boss’ knowledge and expect special treatment; etc.)

External recruitment
Advantages

1. New Workers can bring new skills and innovation to the organization
2. The organization attracts a wider pool of home and abroad talent
3. Hiring experienced employee can reduce training needed
4. Internal politics may be avoided (e.g., less upsetting to present organizational hierarchy)
5. Allows rapid growth

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Disadvantages

1. More Expensive
2. Existing employees will not have the chance to enhance the careers
3. Recruitment process may be slower
4. Current organization members may fight new ideas

The Job

A job can be defined as a group of homogeneous tasks related by similarity of functions. A job can be
performed by an employee in an exchange for a pay, a job consists of duties, responsibilities, and tasks
that are defined, specific and accomplished, quantified, measured, and rated.

A task is the smallest identifiable and essential piece of a job that serves as a unit of work, and is one of
the work operations that is a logical, essential step in the performance of a duty.
• It defines the methods, procedures and techniques by which duties are carried out.
• It should show: What is done (action), How it is done (procedures, materials, tools, or equipment),
and Why it is done (purpose).

A duty is a major subdivision of work performed by an individual.

• It includes similar tasks that make up one area of responsibility.

• Most jobs have four to eight duties.

A responsibility is a duty or obligation to satisfactorily perform or complete a task (assigned by someone,

or created by one's own promise or circumstances) that one must fulfill, and which has a consequent
penalty for failure.

There are a number of stages, which can be used to define and set out the nature of particular jobs for
recruitment purposes and these include job analysis, job description and Job specifications.

Job analysis is the process of examining jobs in order to identify the key requirements of each job. A
number of important questions need to be explored:

• the title of the job

• to whom the employee is responsible
• for whom the employee is responsible
• a simple description of the role and duties of the employee within the organisation.

Job analysis is used in order to:

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 1. Choose employees either from the ranks of your existing staff or from the recruitment of new
staff.
2. Set out the training requirements of a particular job.
3. Provide information which will help in decision making about the type of equipment and
materials to be employed with the job.
4. Identify and profile the experiences of employees in their work tasks (information which can
be used as evidence for staff development and promotion).
5. Identify areas of risk and danger at work.
6. Help in setting rates of pay for job tasks.

Job analysis can be carried out by direct observation of employees at work, by finding out information
from interviewing job holders, or by referring to documents such as training manuals. Information can be
collected directly from the person carrying out a task and/or from their supervisory staff. Some large
organisations specifically employ 'job analysts'. In most companies, however, job analysis is expected to
be part of the general skills of a training or personnel officer.

Job description
Is a broad, general and written statement of a specific job, based on the findings of a job analysis. It
generally includes duties, purpose, responsibilities, scope, and working conditions of a job along with the
job's title, and the name or designation of the person to whom the employee reports. Job description
usually forms the basis of job specification.

Job specification.

Is a statement of employee characteristics and qualifications required for satisfactory performance of

defined duties and tasks comprising a specific job or function. Job specification is also derived from job
analysis.

Below is a general sample of job description and specification.

1. General Information such as Title Code, pay Grade, Working Title

2. Position Purpose; Describes the department’s functions, the unit’s functions, and/or the organizational
unit’s functions. The statement should summarize the position’s essential functions and its role in relation
to supporting, administering, or managing the activities of the department, unit, or organizational unit.
3. Essential Functions; Essential job functions describe the duties and responsibilities of a position. A job
function is considered essential when the performance of the function is the purpose for the position.
Typically, an essential function occupies a significant amount of time of the employee’s time and requires
specialized skills to perform. By accurately describing the essential functions of the job, job seekers will
have a clear understanding of the role and your expectations for performing them.
4. Minimum Requirements; The minimum requirements or “basic qualifications” are those qualifications or
criteria which was established in advance and advertised to potential applicants:

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5. Preferred Qualifications; Preferred qualifications are skills and experience preferred in addition to basic
qualifications and can be used to narrow down the pool of applicants. These preferred skills, knowledge,
abilities and competencies can describe a more proficient level at which the essential functions can be
performed such as:

2.1.2 Selection

Selection is the process of gathering information and making decisions about applicants for positions
within the organization.

Some of the Selection processes include;

a) Review Applicants and Develop Short List

Once the position has been posted, candidates will apply, all applicants must be reviewed and successful
one’s considered. It is recommended that all search committee members review all Applicants to ensure
more than one person assesses their qualifications and that individual opinion or biases are avoided. Each
committee member may provide comments to each Applicant’s qualifications as they relate to the
minimum requirements of the position.

b) Conduct Interview

The interview is the single most important step in the selection process. It is the opportunity for the
employer and prospective employee to learn more about each other and validate information provided
by both. By following these interviewing guidelines, you will ensure you have conducted a thorough
interview process and have all necessary data to properly evaluate skills and abilities.

Preparing for the Interview

It is important to properly prepare for the interview as this is the opportunity to evaluate the skills and
competencies and validate the information the applicant has provided in their application and resume.
Choose one or two questions from each competency and minimally required skills to develop your
interview questions. Review the applicant's application or resume and make note of any issues that you
need to follow-up on.

The Committee Chair should determine the following:

• Format of the interview and order of questions

• Questions to be asked of all applicants
• Specific questions to be asked of individual applicants
• Who is going to ask which questions

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• Determine if a work sample should be submitted
• The optimum start date for the position
• Any other details applicants may need about the role that were not noted in the position description

Phone Interviews

A phone interview may be conducted to initially screen the applicant for information such as availability,
salary requirements, special position requirements (e.g. ability to perform shift work) and other
preliminary information. Although a phone interview should not ordinarily take the place of the in-person
interview, it is possible to screen out an applicant due to information obtained during this initial screening.
Phone interviews should be properly documented and attended by all search committee members if
possible.

Panel Interviews

Prior to the panel interview, committee members should ensure they know which interview questions
each will ask. Committee members should limit the number of questions to 2-4 to allow sufficient time
for all committee members to participate.

At the start of the interview, introductions of the Chair and panel members, including names and job
titles/roles, are given. Next, the Chair should outline the format of the interview so that the candidate is
aware of what is going to happen.

A typical format might be:

• Introductions of each panel member

• A brief description of the role they are being interviewed for
• Describe how the interview panel will conduct the interview (e.g. each alternates questions and all will
take notes)
• The candidate gives an overview of their experience
• Each panel member provides their questions
• The interviewee is given time at the end to ask questions
• The interviewee is informed of the next step (e.g. will be contacted either by phone or in writing of the
outcome)
• Thank the candidate for coming and ensure someone shows the candidate out

After the Interview

Upon completing the interview, committee members will complete the Search Committee Interview
Rating Sheet which is forwarded to the Committee Chair at the end of the interviews. Candidate

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evaluations should be sure to include only those comments which are relevant to the requirements of the
position.

c) Select final candidate

Once the interviews have been completed, the committee will meet to discuss the interviewees.
Committee members will need to assess the extent to which each one met their selection criteria.

d) Reference checks

Reference checks should be conducted on the final applicant prior to making an offer. While it is advisable
to conduct a reference with the candidate’s current supervisor before a candidate starts employment

e) Finalize Recruitment

Upon completion of the recruitment process the offer to the selected finalist is made. The salary to be
offered is to be equitable and lead to the retention and motivation of employees, appointment letters are
issued at this stage.

2.1.3 Induction, orientation and training

Induction refers to a process of introducing the newcomer to his company and work environment.
Induction can include making the newcomer aware of the organizational hierarchy and company
overview. So it can include information like mission, vision, objectives, history of the company, clients,
policies and dress code, etc. Induction has a shorter duration and can be conducted on the day the new
employee joins the organization itself. Induction can be conducted through video sessions or PowerPoint
presentation.

Orientation is the process of helping the newcomer to align with his new position, responsibilities and
work culture.
It is a more of a formal program following induction. The duration of the orientation session can vary from
one to several days depending on the needs of the organization as well as the department. During the
orientation session, the newcomer will learn about his tasks, assignments, team members, various
procedures, processes and equipment.

Both induction and orientation are interrelated processes that refer to an instigation program designed
to help new employees to adjust to an organization. The two words induction and orientation are often
used interchangeably, even though there is a difference between them based on meaning and application.
The goals of induction and orientation training include;
• Create a positive atmosphere
• Address any new job concerns
• Increase comfort level and feeling of belonging
• Increase knowledge of the organization and its procedures and policies
• Share organizational values
• Share job specific information

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Training

Training consists of a range of processes involved in making sure that job holders have the right skills,
knowledge and attitudes required to help the organization to achieve its objectives. Training thus takes
place in the following ways:

1 On the job - learning skills through experience at work

2. Off the job - learning through attending courses.

On the job (OJT)

on the job training (OJT) is a method of imparting training to the employees when they are on the job at
the workplace. The aim of training is to make the employees familiar with the normal working situation,
i.e. during the training period, the employees will get the first-hand experience of using machinery,
equipment, tools, materials, etc. It also helps the employees to learn how to face the challenges that occur
during the performance of the job.

The main theme of this training method is learning by doing where the supervisor or the experienced
employees demonstrate the trainees how to perform a particular task. The trainees follow the instructions
of the supervisor and perform the task. Due to the simplicity, this method highly used by the firms to train
the current or new employees.

Off-the-job training

“Off the job” training is a method of training, which is undertaken at a site, away from the actual workplace
for a particular period. The reason behind imparting training at a place other than the job location is to
provide a stress-free environment to the employees where they can concentrate only on learning. Study
material is supplied to the trainees, for complete theoretical knowledge.

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The trainees are free to express their views and opinions during the training session. Moreover, they can
explore new and innovative ideas.

It is one of the expensive training methods. It involves selection of the place of training, the arrangement
of facilities for the workers, hiring an expert to impart training, etc.

2.2 Performance Appraisal

A performance appraisal is a systematic and periodic process that assesses an individual employee’s job
performance and productivity in relation to certain pre-established criteria and organizational objectives.

A performance appraisal (PA) is sometimes referred to as performance review, performance evaluation,

career development discussion, or employee appraisal.

Objectives of performance appraisal

• To provide feedback
• To diagnose the strength and weakness
• To provide coaching and counseling
• To develop positive superior subordinate relations
• To facilitate research
• To test the effectiveness of recruitment
• To provide a valid database

Types of Performance Appraisal

• Top-down: Supervisors evaluate their staff with no input from the subject.
• Self-assessment: Individuals rate their job performance and behavior.
• Peer assessment: An individual's work group rates his performance.
• 360-degree feedback assessment: Includes input from an individual, her supervisor and her peers.

Benefits of Performance appraisal

• Providing Feedback. Providing feedback is the most common justification for an organization to
have a performance appraisal system.
• Performance improvement (Both at individual employee level and organization level).
• Basis for employment decisions (e.g. promotions, terminations, transfers).
• Facilitation of communication: (e.g. allowing employees to know how they are doing and
organizational expectations).
• Goal setting and desired performance reinforcement: organizations find it efficient to match
individual worker’s goals and performance with organizational goals.
• Determination of training needs
• As a means of documentation to aid in keeping track of decisions and legal requirements in wage
and salary administration.
• PAs can aid in the formulation of job criteria and selection of individuals “who are best suited to
perform the required organizational tasks”
• A PA can be part of guiding and monitoring employee career development.

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 • PAs can also be used to aid in work motivation through the use of reward systems.

Performance appraisal Process

• Establishing the performance standards/objectives
• Communication the standards/objectives
• Measuring performance
• Comparing the actual with the standard
• Discussing the appraisal
• Taking corrective actions

Performance appraisal Criticisms/drawbacks

• Difficult to differentiate individual and organizational performance
• Distrust of the appraisal can lead to issues between subordinates and supervisors or a situation
in which employees merely tailor their input to please their employer
• Negative perceptions: If the person being appraised does not trust their employer, appraiser or
believe that they will benefit from the process it may become a "tick box" exercise.
• Errors: supervisors will sometimes rate employees more favorably than that of their true
performance in order to please the employees and avoid conflict. “Inflated ratings are a common
malady associated with formal" PA.
• Legal issues: when PAs are not carried out appropriately, legal issues could result that place the
organization at risk. PAs are used in organizational disciplinary programs as well as for
promotional decisions within the organization. The improper application and utilization of PAs
can affect employees negatively and lead to legal action against the organization.
• Performance goals: performance goals and PA systems are often used in association. Negative
outcomes concerning the organizations can result when goals are overly challenging or
overemphasized to the extent of affecting ethics, legal requirements, or quality.
• Derail merit pay or performance-based pay: some researchers contend that the deficit in merit
pay and performance-based pay is linked to the fundamental issues stemming from PA systems.

Improving Performance Appraisals

Although performance appraisals can be so easily biased, there are certain steps that can be taken to
improve the evaluations and reduce the margin of errors through the following:

• Training - Creating an awareness and acceptance in the people conducting the appraisals
within a group of workers, they will find a wide range in difference of skills and abilities.

• Providing Feedback to Raters - Trained raters provide managers who evaluated their
subordinates with feedback, including information on ratings from other managers. This
reduces leniency errors.

• Subordinate Participation - By allowing employee participation in the evaluation process,

there is employee-supervisor reciprocity in the discussion for any discrepancies between
self ratings and supervisor ratings, thus, increasing job satisfaction and motivation.
• Standardizing PA process

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2.3 Salary and Wage Administration

Salary and wage administration is the process of compensating an organization's employees in accordance
with accepted policy and procedures. An important component of a successful organization's salary and
wage administration policy is monitoring and evaluating all employees' compensation to ensure that
they're being paid appropriately, both with respect to others in the same organization and to the market
place as a whole.

Salary is a fixed amount paid or transferred to the employees at regular intervals for their performance
and productivity, at the end of the month.

Wages are as a compensation that is given based on the amount of work done and the hours spent in
doing that.

The first element of salary and wage administration, is the periodic payroll, is a critical component of any
organization's functioning. Employees' personal budgets and plans are contingent upon getting paid
regularly, and if compensation is late, short, or missing even a single time, morale is severely affected, as
is confidence in the employer's stability. Organizations usually devote significant resources to making sure
that employees are paid the right amount on time.

The second element of salary and wage administration is monitoring and evaluating employees'
compensation is an ongoing function. This includes evaluating the elements of each job in the
organization and classifying it according to a number of different criteria, including the nature of the work
itself, the amount of supervision necessary, the physical exertion normally associated with the job, and
the amount of training necessary to do the job proficiently.

The main objective of wage and salary administration is to establish and maintain an equitable wage and
salary system. This is so because only a properly developed compensation system enables an employer to
attract, obtain, retain and motivate people of required calibre and qualification in his/her organisation.

Objectives of Compensation
• It enables an organisation to attract and retain the manpower it requires
• It motivates employees and provides directions to their efforts
• It induces employees to develop skills and competencies which the organisation requires or may
require in future
• It is used to foster values and culture in an organisation
• Maintain equity and fairness in compensation for similar jobs

Factors affecting wage/Salary levels

• Remuneration in comparable industries
• Firm’s ability to pay
• Relating to price index
• Productivity
• Cost of Living
• Union Pressures & Strategies
• Government Legislations

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Principles of wage and salary administration:
1. External Equity
2. Internal Equity
3. Individual Worth.

1. External Equity:
This principle acknowledges that factors/variables external to organisation influence levels of
compensation in an organisation. These variables are such as demand and supply of labour, the market
rate, etc. If these variables are not kept into consideration while fixing wage and salary levels, these may
be insufficient to attract and retain employees in the organisation. The principles of external equity ensure
that jobs are fairly compensated in comparison to similar jobs in the labour market.

2. Internal Equity:
Organisations have various jobs which are relative in value term. In other words, the values of various jobs
in an organisation are comparative. Within your own Department, pay levels of the teachers (Professor,
Reader, and Lecturer) are different as per the perceived or real differences between the values of jobs
they perform. This relative worth of jobs is ascertained by job evaluation. Thus, an ideal compensation
system should establish and maintain appropriate differentials based on relative values of jobs. In other
words, the compensation system should ensure that more difficult jobs should be paid more.

3. Individual Worth:
According to this principle, an individual should be paid as per his/her performance. Thus, the
compensation system, as far as possible, enables the individual to be rewarded according to his
contribution to organisation.

Remuneration
Remuneration is the compensation that one receives in exchange for the work or services performed.
Typically, this consists of monetary rewards, also referred to as wage or salary. A number of
complementary benefits, however, are increasingly popular remuneration mechanisms.

Key Compensation Components

• Salary and wages.
• Bonuses
• Commission
• Employee stock option
• Long-term incentives.
• Health insurance
• Life and/or disability insurance
• Retirement plans
• Time off and flexible schedules
• Fringe benefit such as discounts on company products; the use of a company cars; and any other
incentives that motivate employees and give your company a competitive advantage.

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2.4 Participative Management

Participative (or participatory) management, otherwise known as employee involvement or participative

decision making, encourages the involvement of stakeholders at all levels of an organization in the analysis
of problems, development of strategies, and implementation of solutions. Employees are invited to share
in the decision-making process of the firm by participating in activities such as setting goals, determining
work schedules, and making suggestions. Other forms of participative management include increasing the
responsibility of employees (job enrichment); forming self-managed teams, quality circles, or quality-of-
work-life committees; and soliciting survey feedback. Participative management, however, involves more
than allowing employees to take part in making decisions. It also involves management treating the ideas
and suggestions of employees with consideration and respect. The most extensive form of participative
management is direct employee ownership of a company.
Four processes influence participation. These processes create employee involvement as they are pushed
down to the lowest levels in an organization. The farther down these processes move, the higher the level
of involvement by employees. The four processes include:

1. Information sharing, which is concerned with keeping employees informed about the economic
status of the company.
2. Training, which involves raising the skill levels of employees and offering development
opportunities that allow them to apply new skills to make effective decisions regarding the
organization as a whole.
3. Employee decision making, which can take many forms, from determining work schedules to
deciding on budgets or processes.
4. Rewards, which should be tied to suggestions and ideas as well as performance.

Hajzler (2011) characterizes participative management style and freedom at work with these four main
features:

a) Commitment - employees voluntarily commit to do their tasks, they are willing to negotiate about
the objectives and procedures
b) Mastery, autonomy and meaningfulness - the three needs that create the system. The more built
for them, the stronger the intrinsic motivation of employees. The more of them are present, the
higher intrinsic motivation of employees.
c) Self-management - the arrangement is made such that it is not necessary manager that manages
others,
d) Engagement - the more you manage to meet the needs of mastery and autonomy, the more
people feel involved and have a greater desire to work. The system is not only functional and self-
governing, but there it passion, creativity, freedom and independence.

4.5 Formal and Informal Groups

A Group involves two or more freely interacting individuals who share collective norms and goals and
have a common identity. They may be formal or informal

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4.5.1 Formal Groups

A formal group is a collection of persons, who came together for achieving organizational objectives or
tasks. They are always created with intent to fulfil some official requirement. Formation of the group is
done by the management. It possesses a systematic structure, in hierarchical form.

Types of formal groups:

• Command groups: The groups that consist of managers and their subordinates.
• Committees: The group of people who are appointed by an organisation, to resolve the matters,
referred to them are known as Committee. E.g Advisory Committee, Standing Committee, etc.
• Task Forces: The group form to carry out a particular task is known as Task Forces.

A formal group can be a command group or a functional group that is relatively permanent is composed
of managers and their subordinates who meet regularly to discuss general and specific ideas to improve
product or service.

4.5.2 Informal Groups

Informal groups are formed by the employees as per their likes, interests, and attitudes. They emerge
naturally, in response to the common interests of organizational members. They are formed
spontaneously, without any formal designation, and with common interests such as self-defense, work
assistance and social interaction.

They exist outside the formal authority system and without any set rigid rules. Though officially
unrecognized, they exist in the shadow of the formal structure as a network of personal and social
relations that must be understood and respected by the management.

Informal work groups are based upon socio-psychological support and reasoning and depend upon
member’s interaction, communication, personal likings and dislikings and social contacts within as well as
outside the organization. How powerful these informal groups can be seen from the fact that if one
member of the group is fired, sometimes all workers go on strike in support of that member of the group.

Informal groups may have their own leaders and followers, group goals, social roles and working patterns.
They have their own unwritten rules and a code of conduct that every member implicitly accepts.

Some other aspects of Informal Groups are as follows:

Group Norms: Parallel to performance and other standards established by the formal organizational
structure, the informal groups have their own norms as rules of conduct and a standard of behavior that
is expected of all members.

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Groups Roles: There is an unwritten assignment within the group as to which task will be done by whom
and under what conditions.
Group Goals: The goal of the informal group, whether it be profitability that conflicts with the
organizational goals or customer service which is in accord, heavily influences productivity. It is necessary
to integrate the group goals with the organizational goals for the purpose of improvement and success.

Leadership: The informal leader emerges from the group either because of his personal charisma, his
social status or his technical expertise.

Group Cohesiveness: Cohesiveness refers to the degree and strength of interpersonal attraction among
members of the group. High degree of cohesion is highly motivating in achieving the group goals.
Members help each other and support each other.

BASIS FOR COMPARISON FORMAL GROUP INFORMAL GROUP

Meaning Groups created by the Groups created by the employees
organization, for the purpose of themselves, for their own sake
accomplishing a specific task

Formation Deliberately by top Voluntarily by members

management.
Size Large Comparatively small.
Life Depends on the type of group. Depends on the members.
Structure Well Defined Ill Defined
Importance is given to Position Person
Relationship Professional Personal
Communication Moves in a defined direction. Stretches in all the directions
(Grapevine).
Authority Members are bound by All members are equal.
hierarchical structure.
Focus on Work performance Interpersonal relationship

4.5.3 Teams

A team comprises three or more people who may come from different departments within a business,
but they collaborate together over time to achieve some set purpose, goal or project. For instance, before
a small business creates a new product, it may organize a team composed of people from all departments
– engineering, finance, legal, marketing, etc. – to consider all aspects of the potential new product to
avoid costly surprises down the road. With a team, individuals recognize the expertise and talents of
others needed to achieve the team’s goal. Additionally, teams are often formed for temporary
assignments with one specific goal, focus or outcome in mind.

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Teamwork Occurs when group members actively work together in such a way that all their respective
skills are well utilized to achieve a common purpose.
Guiding Principles of Team building;

• Good communications with participants as team members and individuals

• Increased department productivity and creativity
• Team members motivated to achieve goals
• A climate of cooperation and collaborative problem-solving
• Higher levels of job satisfaction and commitment
• Higher levels of trust and support
• Diverse co-workers working well together
• Clear work objectives
• Better operating policies and procedures

Groups and Team Development Process

Four types of teams below can be identified in organizations today.

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4.6.1 Industrial Conflict

Industrial conflict occurs when employees express their dissatisfaction with management over the
current state of the management-employee relationship. The causes of such dissatisfaction are typically
matters related to regular wage payment, wage increase or remunerations according to terms of the
employment contract. Employees can express such dissatisfaction in formal or informal ways. Formal
methods are organized and are planned in advance, while informal ones are spontaneous and
unorganized, usually taking management by surprise.

Types of formal and informal industrial conflicts.

Strike
A strike is the employees’ temporary withdrawal of services, contrary to an employment contract. It is
a formal form of industrial conflict that is usually organized by a trade union. (Trade unions are
representatives of employment that ensure that employee working conditions and earnings are
managed according to rule.) During typical strikes, trade unions ensure that there are no alternative
means of getting the services that employees have refused to provide. A strikes usually continues until
management addresses the matter of dissatisfaction that caused it.

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Work-to-rule
Work-to-rule, another form of formal industrial action, occurs when workers work strictly according to
the legal terms of their contract. They deliberately refuse to make use of their initiative and act rigidly,
like pre-programmed machines. For instance, a nurse may deliberately refuse to answer phone calls
that are meant for doctors (since her terms of contract do not include phone-answering).

Absenteeism
Absenteeism, an informal form of industrial conflict, occurs when employees deliberately refuse to
report to their workplace. Absenteeism is not always a sign of industrial conflict, since employees can
fail to report to work due to injury or illness, for instance. Thus industrial-conflict absenteeism merely
increases the loss of productivity and revenue that an organization suffers due to failure of workers to
report for duty due to reasons of personal incapacity that they cannot help, such as illness.

Sabotage
Sabotage, another form of informal industrial conflict, occurs when employees deliberately damage
their organization’s production or reputation. This could take the form of slowing down production,
temporarily disabling machinery, direct destruction of organization’s property or slandering the
organization. Employers who engage in sabotage (saboteurs) usually hide their individual identities, but
do not shy away from identifying themselves as a pressure group.

Causes/Sources of conflict in organizations

1. Constant change- industrial societies are dynamic.
2. Unlimited needs and desires of the parties
3. Divergent interests.
4. Greater employee diversity and more groups in the workforce- formal and informal groups.
5. Identity and survival instincts of the parties- union must resist to retain its identity, management cannot
go on agreeing to demands.
6. More dynamic careers (less loyalty to organization)
7. A global economy with increased cross-cultural dealings.
8. Relative share of revenue, wages and salaries
9. Changes in staffing levels
10. Welfare of employees
11. Technological change
12. Change in work methods/duties
13. Change in work location
14. Retrenchment
15. Leaves and hours of work/ shift working
16. Indiscipline and violence

4.6.1 Collective Bargaining:

Collective bargaining is where Industrial disputes between the employee and employer can also be settled
by discussion and negotiation between these two parties in order to arrive at a decision.

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It involves the process of union organization of employees, negotiations administration and interpretation
of collective agreements concerning wages, hours of work and other conditions of employees arguing in
concerted economic actions dispute settlement procedures.

Collective Bargaining Involves:

(i) Negotiations
(ii) Drafting
(iii) Administration
(iv) Interpretation of documents written by employers, employees and the union representatives
(v) Organizational Trade Unions with open mind.

4.6.1 Negotiations

Negotiation is a method by which people settle differences. It is a process by which compromise or

agreement is reached while avoiding argument and dispute.

Stages of Negotiation
• Preparation and planning
• Discussion
• Clarification of goals
• Negotiate towards a Win-Win outcome
• Agreement
• Implementation of a course of action

2.7 Behavioral Aspects of Management

As management research continued in the 20th century, questions began to come up regarding the
interactions and motivations of the individual within organizations. Management principles developed
during the classical period were simply not useful in dealing with many management situations and could
not explain the behavior of individual employees. In short, classical theory ignored employee motivation
and behavior. As a result, the behavioral school was a natural outgrowth of this revolutionary
management experiment.

The behavioral management theory is often called the human relations movement because it addresses
the human dimension of work. Behavioral theorists believed that a better understanding of human
behavior at work, such as motivation, conflict, expectations, and group dynamics, improved productivity.

The theorists who contributed to this school viewed employees as individuals, resources, and assets to be
developed and worked with — not as machines, as in the past. Several individuals and experiments
contributed to this theory.

Elton Mayo's contributions came as part of the Hawthorne studies, a series of experiments that rigorously
applied classical management theory only to reveal its shortcomings. The Hawthorne experiments
consisted of two studies conducted at the Hawthorne Works of the Western Electric Company in Chicago
from 1924 to 1932. The first study was conducted by a group of engineers seeking to determine the

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relationship of lighting levels to worker productivity. Surprisingly enough, they discovered that worker
productivity increased as the lighting levels decreased — that is, until the employees were unable to see
what they were doing, after which performance naturally declined.

A few years later, a second group of experiments began. Harvard researchers Mayo and F. J.
Roethlisberger supervised a group of five women in a bank wiring room. They gave the women special
privileges, such as the right to leave their workstations without permission, take rest periods, enjoy free
lunches, and have variations in pay levels and workdays. This experiment also resulted in significantly
increased rates of productivity.

In this case, Mayo and Roethlisberger concluded that the increase in productivity resulted from the
supervisory arrangement rather than the changes in lighting or other associated worker benefits. Because
the experimenters became the primary supervisors of the employees, the intense interest they displayed
for the workers was the basis for the increased motivation and resulting productivity. Essentially, the
experimenters became a part of the study and influenced its outcome. This is the origin of the
term Hawthorne effect, which describes the special attention researchers give to a study's subjects and
the impact that attention has on the study's findings.

The general conclusion from the Hawthorne studies was that human relations and the social needs of
workers are crucial aspects of business management. This principle of human motivation helped
revolutionize theories and practices of management.

Abraham Maslow, a practicing psychologist, developed one of the most widely recognized need
theories, a theory of motivation based upon a consideration of human needs . His theory of human needs
had three assumptions:

• Human needs are never completely satisfied.

• Human behavior is purposeful and is motivated by the need for satisfaction.
• Needs can be classified according to a hierarchical structure of importance, from the lowest to
highest.
Maslow broke down the needs hierarchy into five specific areas:

• Physiological needs. Maslow grouped all physical needs necessary for maintaining basic human
well‐being, such as food and drink, into this category. After the need is satisfied, however, it is no
longer is a motivator.
• Safety needs. These needs include the need for basic security, stability, protection, and freedom
from fear. A normal state exists for an individual to have all these needs generally satisfied.
Otherwise, they become primary motivators.
• Belonging and love needs. After the physical and safety needs are satisfied and are no longer
motivators, the need for belonging and love emerges as a primary motivator. The individual
strives to establish meaningful relationships with significant others.
• Esteem needs. An individual must develop self‐confidence and wants to achieve status,
reputation, fame, and glory.
• Self‐actualization needs. Assuming that all the previous needs in the hierarchy are satisfied, an
individual feels a need to find himself.
Maslow's hierarchy of needs theory helped managers visualize employee motivation.

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2.9 Employee welfare

Employee welfare entails everything from services, facilities and benefits that are provided or done by an
employer for the advantage or comfort of an employee. It is undertaken in order to motivate employees
and raise the productivity levels.

Employee Welfare types

a) Statutory Welfare Schemes
• Drinking Water
• Facilities for sitting
• First aid appliances
• Canteen facilities
• Spittoons
• Lighting

b) Non Statutory Schemes

• Personal Health Care
• Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to
work with flexible working schedules
• Employee Assistance Programs: Various assistant programs are arranged like external counseling
service so that employees or members of their immediate family can get counseling on various
matters.

2.10 Challenges of Human Resource Management

• Diversity of workforce, this makes it hard to coordinate

• Changing roles in the corporate society
• Over lapping roles of managers
• Compensation and benefits
• Employing skilled staff
• Technological improvement/innovations
• Retention/high turnover
• Succession planning
• Leadership development

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