Vous êtes sur la page 1sur 8

Chapter 7 Employee Relations and employment law

Trade unions <--> Employers and Govt 1. Improved productivity thru reduced absenteeism 2. Safeguarding the interests of workers thru mutual understanding with mgmt 3. Improve living standards and economic condition of workers 4. Ensure safety of workers against harmful effects 5. Constructive criticism of Mgmt 6. Avoid industrial disputes

A) The Industrial disputes act 1947 - Same as above - plus eliminate gheraos, lockouts and strikes

B) The Apprenticeship Act 1961

- To provide practical training to technically qualified persons - To promote newly skilled manpower

C) The Employment Exchanges Act, 1959 - To provide compulsory notifications of vacancies to the Employment Exchanges (except unskilled, to be filled with promotions)

D) The Minimum Wage Act, 1948 - statutory fixation of minimum wage rates in awhole lot of industries - to prevent exploitation of labour

E) The payment of Wages Act, 1936 - same as above - prevents illegal withholding of wages - prevents unreasonable deductions from the wages

F) The payment of Bonus Act, 1965 - Conditions: Atleast 20 workers should be employed and salary < 10,000 - includes ALL REMUNERATION other than (OT+DA+RA+Gratuity+Commission+TA+incentives)

G) The factories Act 1948 - working conditions ensuring safety of workers - minimum lighting), ventilation,health, safety , welfare should be provided - Max 48 hours a week, children under 14 years not allowed

H) The Provident Fund Act, 1952 - To encourage employees to save portion of their earnings for a rainy day - Salary > 6,500 - Employers and employee both contribute 12% of (basic + DA) to PF

I) The State Insurance Act, 1948 - secure sickness, maternity, disablement,medical benefits to employees and their families

J) The payment of Gratuity Act, 1972 - Lumpsum payment to employees when they leave the org after a stipulated period (5 Years minimum) - Retirement benefit

K) The workmen's compensation Act , 1923 - Compensation to worker's who are injured during the course of duty - disablement , demice etc the family should be compensated

L) The Maternity Benefit Act, 1961 - At least should have spent 80 days in the org - 12 weeks paid leave

M) The Indusrial Employment act, 1946 - employer should clear make known the working conditions ans terms of empployment to the workers - to protect employees against victimisation

N) The Trade Unions Act, 1926 - Goal: Improve working conditions and wages by bringing power to the workers

Objectives of Trade Unions: - Representation - Negotiation - Voice in decisions affecting workers - Member Services

Collective bargaining: - Negotiations between the Employers and the representatives of workers(Trade Union) over the working conditions and terms of employment - Discussion aimed at reaching an agreement - Negotiation can be about Wage settlement

Team negotiation dispute resolution goal setting work allocation discipline meetings performance counselling

********************************************************************************** *********************************************************

Chapter 8 Compensation

Compensation---> Financial Returns + tangible Benefits

Compensation Financial a) Direct Financial: Wage, salary,commission, bonuses, incentives etc b) Indirect Financial: Wide variety of rewards and benefits

Non Financial :Job satisfaction, job environment(Physical + Psychological)

Programme: 1. Base wage and salary 2. wage and salary add ons 3. Incentive pay(variable pay) 4. Employee benefits and services 5. Performance based variable pay 6. Profit sharing , gain sharing , equity plans

Compensation : 1. Fair compensation motivates employees 2. Promotes competitive 3. Flexibilty 4. Establishing pay levels on the basis of both external market rates and also on relative internal value 5. Administer the pay equitably 6. Ensure statutory compliance

Internal Factors which decide the compensation mix are; 1. Employer's compensation strategy 2. Ability to pay 3. Relative worth if the job 4. Employee's relative worth

External Factors which decide the compensation mix are; 1. Manpower wage rates 2. Area wage rates 3. Cost of living 4. Collective bargaining

Theories 1. Maslow's hierarchy of needs 1943 2. Alderfer's theory of needs, 1969 Existence: Lower order needs Relatedness: Affection Growth : personal development

3. Herzberg's Two factor theory Heigene factors : remove dissatisfaction Motivating factors: Cause satisfaction

4. McClelland's theory Need for Achivement nAch Need for Affiliation nAff Need for Power nPw

5. Adam's Equity theory Employee feel motivated when they perceive to be treated fairly or advantageously

6. Vroom's Expectancy theory Effort leads to Acceptable performance Performance leads to Rewards Reward is Valuable to employee

Phases of Compensation management 1. Job Analysis : JD and JS 2. Job Evaluation: Ranking, classification, point system,factor comparison 3. Salary Survey : General survey, published dat, a, company survey 4. Matching (internal + external): Grade jobs and compensation structure

Ranking: Jobs are ranked accordig to their perceived relative worth point system: Each job is evaluated on several factors and each factor is assigned a score(point) Sum up the score of all the factors for that job and arrange it as per that

Factor comparison: each job is ranked according to series of factors Classification: Divide into classes called pay grades

Broadbanding; Compressing many pay grades nad job grades into smaller number of wide bands - flexibilty - result oriented - decentralisation - competence

Variable pay - merit payprofit sharing, gain sharing, piece work - lumpsum rewards, recognition programmes - skill based , knowledge based , competency related

Interntional Compensation - HCN - TCN - PCN

Base salary i) Going rate approach ii) Balance sheet approach

Allowances 1. COLA

2. Housing Allowance 3. Home leave Allowance 4. Educational Allowance 5. Hardship 6. Forign Country premiums 7. Relocation allowance 8. Mobility Allowance