Labour contractor

In some industries, a labour contractor provides required number and type of labourers as and when needed by the organization. The organization makes direct payment to the contractor and he in turn makes daily payment to the labourers.

Another method of employing labour through contract system is called scheme labour. Here the labourers are engaged for a period of 2-3 years and they are promised a lump sum amount of Rs. 75000-1Lakh after the successful completion of the stipulated period. During the period they have been provided with free boarding and lodging

Fifteen days leave once in six months to visit their native place in addition to the weekly holiday. The advantage of the system is that proper training can be imparted depending upon the requirement. Absenteeism is very less since they are all staying in the company premises. There is no union interference and the output is also very high from the labourers.

Out sourcing HR activities

Many companies are making use of the services of third parties for HR activities that is recruitment, training, payroll administration, medical claim, reimbursement of travel/medical expenses and management of retiral funds like PF, gratuity etc.

Advantages of outsourcing

The company can focus on core business where it has expertise and experience. Non core areas can be handled by the third party.

Disadvantages of HR outsourcing
HR problems of third party provider will affect the parent organization with regard to quality of output, customer service. The organization may face industrial problems as existing employees may feel that they may lose jobs.

Promotion

Promotion is one of the best form of incentives and it provides higher responsibilities, better salary, high morale and job satisfaction to the employees.

Promotion involves

High responsibility Better job and status Increase in salary

Definition

According to Edvin Flippo:-

Promotion involves a change from one job to the another that is better in terms of status and responsibilities.

Paul and Charles Myers :promotion is an advancement of an employees to a better job, better in terms of greater responsibilities, more prestige or status, grater skill and specially increased rate of pay or salary.

Types of promotions

Vertical promotion Up gradation Dry promotion

Vertical promotion

In this type of promotion employee moves to the next higher level with increase in salary, authority, responsibility and status.

Up gradation

In this type of promotion involves up gradation of the job and employee gets more salary, authority and responsibility.

Dry promotion

This type of promotion refers to increase in responsibilities and status without an increase in salary.

Features of promotion
Promotion is a reward for consistently good performance of the employee It enhances employee morale and job satisfaction It involves higher responsibilities, better job status and increase in salary. Provide opportunities for carrier advancement.

Promotion is beneficial to both employees as well as organization. It motivates, increases the involvement and commitment of the employees, leading to increase productivity. It helps the organization to attract and retain good performers.

Objective of promotion
To appreciate the good performance of the employee and reward him so that he is motivated. To improves job satisfaction among employees. To attract and retain good performer in the organization.

To increase organizational effectiveness. To give a clear massage to the employees that good performance is recognized by the management. To provide higher responsibilities, status and salary to the employee. To develop loyalty and attachment to the organization.

Promotion policy
Planned activity based on correct estimation of the requirements of the organization and the performance of the employee. Fair and impartial promotion without favouritism.

Consistency: Too many promotions in one year followed by absence of promotions/less number of promotions in the next year is to be avoided.

Methods of Promotions

Mainly there are two methods of promotions

1. Promotion based on seniority 2. Promotion based on merits/performance

The third is promotion based on both seniority and merit based

Promotion based on seniority

It includes seniority is based on the total length of service and is counted from the date of joining in the organization. This method is followed in Government service. Qualifications, knowledge, skills, performance, etc. are not gives weightage as promotion is based on seniority.

Promotion based on merits/performance

Promotion by merits is generally followed in private organization. Promotions are based on merits of the employees that is qualifications, knowledge, skills, honesty, initiative, interpersonal relationship, effective communication and of course performance in the job. Seniority is not given weightage. However union demands promotions based on seniority.