Integration & Quality of Work Life by Raja Rao Pagidipalli

Human Resource Management – M.B.A. PRINCE
R a j a R a o P a g i d i p a l l i Page 1
INTEGRATION
QUALITY OF WORK LIFE
RAJA RAO PAGIDIPALLI
M.B.A.(HRM), M.A.(ENG), M.Phil, (Ph.D)

INTEGRATION - QUALITY OF WORK LIFE
Introduction: There has been much concern today about decent wages, convenient
working hours, conducive working conditions etc. Their term “Quality of work life” has
appeared in research journals and the press in USA only in 1970s. There is no generally
acceptable definition about this term. However, some attempts were made to describe
the term quality of work life (QWL). It refers to the favourableness or unfavourableness
of a job environment for people. QWL means different things to different people. J.
Richard and J. Loy define QWL as “the degree to which members of a work organization
are able to satisfy important personnel needs through their experience in the
organization.”
Quality of work life improvements are defined as any activity which takes place at every
level of an organization, which seeks greater organizational effectiveness through the
enhancement of human dignity and growth … a process through which the stockholders
in the organization management, unions and employees — learn how to work together
better to determine for themselves what actions, changes and improvements are
desirable and workable in order to achieve the twin and simultaneous goals of an
improved quality of life at work for all members of the organization and greater
effectiveness for both the company and the unions.
Richard E. Walton explains quality of work life in terms of eight broad conditions of
employment that constitute desirable quality of work life. He proposed the same criteria
for measuring QWL. Those criteria include:
Ï Adequate and Fair Compensation: There are different opinions about adequate
compensation. The committee on Fair Wages defined fair wage as” . . . the wage
which is above the minimum wage, but below the living wage.”
Ï (ii) Safe and Healthy Working Conditions: Most of the organizations provide safe
and healthy working conditions due to humanitarian requirements and/or legal
requirements. In fact , these conditions are a matter or enlightened self interest.
Ï (iii) Opportunity to Use and Develop Human Capacities: Contrary to the
traditional assumptions, QWL is improved… “to the extent that the worker can
exercise more control over his or her work, and the degree to which the job
embraces and entire meaningful task” … but not a part of it. Further, QWL

provides for opportunities like autonomy in work and participation in planning in
order to use human capabilities.
Ï (iv) Opportunity for Career Growth: Opportunities for promotions are limited in
case of all categories of employees either due to educational barriers or due to
limited openings at the higher level. QWL provides future opportunity for
continued growth and security by expanding one’s capabilities, knowledge and
qualifications.
Ï (v) Social Integration in the Work Force: Social integration in the work force can
be established by creating freedom from prejudice, supporting primary work
groups, a sense of community and inter-personnel openness, legalitarianism and
upward mobility.
Ï (vi) Constitutionalism in the Work Organization: QWL provides constitutional
protection to the employees only to the level of desirability as it hampers workers.
It happens because the management’s action is challenged in every action and
bureaucratic procedures need to be followed lat that level. Constitutional
protection is provided to employees on such matters as privacy, free speech,
equity and due process.
Ï (vii) Work and Quality of Life: QWL provides for the balanced relationship
among work, non-work and family aspects of life. In other words family life and
social life should not be strained by working hours including overtime work, work
during inconvenient hours, business travel, transfers, vacations etc.
Ï (viii) Social Relevance of Work: QWL is concerned about the establishment of
social relevance to work in a socially beneficial manner. The workers’ self esteem
would be high if his work is useful to the society and the vice versa is also true.
Quality Circles:
Quality circles which have been popularized by Japanese firms are being used all over
the world because of the benefits that accrue to the firm. A quality circle involves
participation from a small group of employees doing the same type of work. They meet
regularly to identify, analyze and solve the problems that arise during the course of their
work and their association with the organization.
The basic objectives of quality circles are to develop and utilize human resources
effectively, to develop quality products, improve the quality of work life and sharpen and
utilize an individual’s creative abilities. There are different steps involved in the
development of quality circles from getting started to problem-solving. Communicating
the importance of quality circles to the employees is of prime importance.
The next step is the composition of a quality circle. Then the stage of initial problem
solving through which employee suggestions are presented, follows. The suggestions are

then evaluated and the best one, chosen by consensus, is implemented. Various
techniques like brainstorming sessions, fish bone diagram and sampling and charting
methods, are used in quality circles. Problems arise in the implementation of quality
circles because of lack of understanding regarding the concepts, low education levels
and training, delays in execution and operational problems. Most of these problems can
be resolved through effective training of employees and management support.
Industrial Relations: The concept of industrial relations means the relationship
between employees and the management in the day-to-day working of the industry. But
the concept has a wide meaning. When taken in the wider sense, industrial relations is a
“set of functional interdependence involving historical, economic, social, psychological,
demographic, technological, occupational, political and legal variables.” According to
Dale Yoder, industrial relations is a “whole field of relationship that exists because of the
necessary collaboration of men and women in the employment process of an industry.”
According to the international Labour Organisaton (ILO), “Industrial Relations deal
with either the relationship between the state and employers’ and workers’
organizations or the relation between the occupational organizations themselves.”
The concept of industrial relations has been extended to denote the relations of the joint
consultations between employers and people at their organizations. The subject there
fore includes individual relations of the joint consultations between employers and
people at their work place, collective relations between em0ployers and their
organizations and trade unions and the part played by the State in regulating these
relations.
Characteristics of Industrial Relations: Characteristics of industrial rations
include:
¤ i. Industrial relations are the outcome of employment relationship in an
industrial enterprise.
¤ ii. Industrial relations develop the skills and methods of adjusting to and co-
operating with each other.
¤ iii. Industrial relations system creates complex rules and regulations to maintain
harmonious relations.
¤ iv. The Government involves to shape the industrial relations through laws, rules,
agreements, awards etc.
¤ v. The important factors of industrial relations are: employees and their
organizations, employer and their associations and the Government.
Factors of Industrial Relations: Industrial relations are influenced by various
factors, viz., institutional factors, economic factors and technological factors.

1. Institutional factors: These factors include government policy, labour legislations,
voluntary courts, collective agreement, employee courts, employers’ federations, social
institutions like community, caste, joint family, creed, system of beliefs, attitudes of
works, system of power status etc.
2. Economic factors: These factors include economic organization, like capitalist,
communist mixed etc,. The structure of labour force, demand for and supply of labour
force etc.
3. Technological factors: These factors include mechanization, automation,
rationalization, computation etc.,
4. Social and cultural factors: These factors include population, customs and
traditions of people, ethnic groups, cultures of various groups of people etc.
5. Political factors: These factors include political system in the country, political
parties and their ideologies, their growth, mode of achievement of their policies,
involvement in trade unions etc.
6. Government factors: These factors include governmental policies like industrial
policy, economic policy, labour policy, export policy etc.
Objectives of Industrial Relations:
The primary objective of industrial relations is to maintain congenial relations between
employees and the employer. And the other objectives are:
þ i. To promote and develop congenial labour management relations;
þ ii. To enhance the economic status of the worker by improving wages, benefits
and by helping the worker in evolving sound budget;
þ iii. To regulate the production by minimizing industrial conflicts through state
control;
þ iv. To socialize industries by making the government as an employer;
þ v. To provide and opportunity to the workers to have a say in the management
and decision-making;
þ vi. To improve worker’s strength with a view to solve their problems through
mutual negotiations and consultation with the management;
þ vii. To encourage and develop trade unions in order to improve the workers’
strength;
þ viii. To avoid industrial conflict and their consequences and
þ ix. To extend and maintain industrial democracy.

DEFINITION OF A DISPUTE/CONFLICT
According to the Industrial Disputes Act, 1947, Section 2 (k), “Industrial dispute means
any dispute of difference between employers and employers, or between employers and
workmen or between workmen and workmen, which is connected with the employment
or non-employment or terms of employment or non-employment or with the conditions
of labour of any person.”
CAUSES OF INDUSTRIAL DISPUTES/CONFLICTS
It not easy to identify a single factor as a cause of industrial conflicts as multifarious
causes blended together result in industrial disputes. Deep seated and more basic causes
of disputes can be identified through in-depth probe, though surface manifestations
appear to be responsible for conflicts. The relative importance of these causes, when
more than one present, is often very difficult to gauge.
According to Mukherjee, “the development of capitalistic enterprise, which means the
control of the tools of production by the small entrepreneur class has brought to the fore
the acute problem of friction between management and labour throughout the world.”
Causes of industrial conflicts may be grouped into four categories, viz.:
1) Industrial factors;
2) Management’s attitude towards workers;
3) Government machinery and
4) Other causes.
TYPES OF INDUSTRIAL CONFLICTS: Industrial conflicts are basically two types,
viz. Strikes and Lock-outs.
Strikes: Strikes are the result of more fundamental maladjustments, injustices and
economic disturbances. According to Peterson, “strike is a temporary cessation of work
by a group of employees in order to express grievances or to enforce a demand
concerning changes in work conditions.Under Section 2(q) of the Industrial Disputes
Act, 1947, strike is “a cessation of work by a body of persons employed in any industry,
acting in combination or a concerted refusal under a common understanding, of a
number of persons who are or have bee so employed to continue to work or to accept
employment.”
However, prohibiting an individual employee, termination of employment of
retrenchment, termination of service of more than one person are not lock-outs.
Strikes are divided into primary strikes and secondary strikes. Primary strikes are
generally against the employer with whom the dispute exist. They take the form of stay
away strike, sit-in, sit-down, pen-down, tools-down, or mouth-shut strikes, go slow,

work-to-rule, token or protest strike, lightening or wildcat strike, picketing or boycott.
þ Primary Strikes:
Stay away strike: In this strike, workmen stay away from the work place. They
organize rallies, demonstrations etc.
Stay-in strike or sit-down shut strike: In this strike, workmen come to the place,
they stay at the work place but they don’t work.
Tools-down, pen-down or mouth-shut strike: In this strike, the strikers lay down
their tools in case of factory workers, lay down their pens in case of office workers and
shut their mouth in case of teachers.
Token or protest strike: It is a very short duration and in the nature of signal for the
danger ahead. In this strike, the workers do not work for an hour or a day.
Lightening or wildcat strike: In this strike, the strikers strike the work without any
prior notice or with a shortest notice.
Go slow: In this strike, the workers intentionally reduce the speed of work.
Work to rule/work to designation: In this strike, the strikers undertake the work
according to rules of job description.
Picketing: It is an act of posting pickets and implies machinery or patrolling of the
workmen in front of the premises of the employer.
Boycott: It alms at disrupting the normal functioning of the enterprise.
Gherao: It is a physical blockade of a target either by encirclement, intended to block
the regress and ingress for a limited period or up to the period of settlement of disputes.
Hunger strike: This type of strike is resorted to either by the leaders of the union or by
some workers all at a time or in small batches for a limited period or up to the period of
settlement of disputes.
Secondary strike: Secondary strikes are against a third party. These strikes are
sympathetic strikes.
Other strikes: These strikes are in the form of general, political strikes and bandhs.

SETTLEMENT OF CONFLICTS: The methods of the settlement of conflicts generally
include those mentioned in the figure below: They are dealt in detail in the following
paragraphs:
Investigation: This is conducted by a board or court appointed by the government. It
may be voluntary or compulsory. If the investigation is conducted on an application by
either or both the parties to the dispute, it is voluntary. If the Government appoints a
Court of inquiry to investigate into a dispute without the consent of the parties, it is
compulsory. Investigations do not aim at bringing about the settlement of disputes
directly, but by analyzing the facts, they aim at bringing about an amicable solution.
When the investigation is comp0ulsory, the strikes and lock-outs are required to be
stopped and employment. The result of investigation has no serious effect on the
disputes because the general public is least bothered to make note of the disputes.
Mediation: another attempt to settle disputes is mediation. In this method, an outsider
assists the parties in their negotiations. It takes place with the consent of both the
parties. The mediator performs the messenger’s job for both the parties and he neither
imposes his will nor his judgement upon them. The main aim of mediation is the
settlement of disputes by bringing about a voluntary agreement. There may be three
kinds of mediation:
Ï (i)The Eminent Outside;
Ï (ii) Non-Government Board; and
Ï (iii) Semi-Governmental Board.
If mediation is conducted skillfully and sympathetically along proper lines, it can bring
about the adjustment of differences tat might otherwise contribute to stoppage of work.
Conciliation: the main objective of a conciliation and arbitration is to reunite and
arbitration is to reunite the two conflicting groups in the industry in order to avoid
interruption of production, distrust etc. Conciliation is a process by which
representatives of both workers and employers are brought together before third party
with a view to persuading them to arrive at some sort of settlement. It is an extension of
collective bargaining with third party assistance. It is the practice by which the services
of a neutral third party are used in a dispute as a means of helping the disputing parties
to reduce the extent of their differences and to arrive at an amicable settlement or
agreed solution. It is a process of rational and orderly discussions of differences between
the parties to a dispute under the guidance of a conciliator. Conciliation machinery
consists of a conciliation officer and board of conciliations. The conciliator induces the
parties to a course of action. He plays the role of an innovator, protector, discussion
leader, stimulator, advisor, face saver. He acts as a safety valve and a communication
link. The task of conciliation is to offer advice and make suggestions to the parties to the
dispute on controversial issues.

Voluntary Arbitration: If the two parties to the dispute fail to come to an agreement,
either by themselves or with the help of a mediator or conciliator, who agrees to submit
the dispute to an impartial authority, whose decision, they are ready to accept. The
essential elements in voluntary arbitration are:
þ the voluntary submission of dispute to an arbitrator;
þ the subsequent attendance of witness and investigations and
þ the enforcement of an award may not be necessary.
Compulsory Arbitration/Adjudication: Where trade unions are weak, the method
of Compulsory Arbitration is used. Compulsory Arbitration is utilized generally when
the parties fail to arrive at a settlement through the voluntary methods.
In India, Compulsory Arbitration is enforced because collective bargaining was not used
for regulating wages and other conditions of employment.
GRIEVANCE PROCEDURE – Meaning/Definitions:
The concept ‘grievance’ has been defined in several ways by different authorities. Some
of the definitions are as follows: Beach defines grievance as “any dissatisfaction for
feeling of injustice in connection with one’s employment situation that is brought to the
notice of the management”, whereas Flippo indicates the grievance as “a type of
discontent which must always be expressed. A grievance is usually more formal in
character than a complaint. It can be valid or ridiculous, and must grow out of
something connected with company operations or policy. It must involve an
interpretation or application of the provisions of the labour contract.” Jucius defines
grievance as” …any discontent or dissatisfaction, whether exposed or not, whether valid
or not, arising out of anything connected with the company which an employee thinks,
believes or even feels to be unfair, unjust or inequitable.
Causes of Grievances: The causes of employee grievances include:
• Demands for individual wage adjustments;
• Complaints about the incentive system;
• Complaints about the job classifications;
• Complaints against a particular foreman;
• Complaints concerning disciplinary measures and procedures;
• Objections to the general methods of supervision;
• Loose calculation and interpretation of seniority rules and unsatisfactory
interpretation of agreements;

• Promotions;
• Disciplinary discharge or lay-off;
• Transfer for another department or another shift;
• Inadequacy of safety and health services/devices;
• Non-availability of materials in time;
• Violation of contracts relating to collective bargaining;
• Improper job assignment;
• Undesirable or unsatisfactory conditions of work;
• Victimization and
• Fines.
Grievance Procedure: The model Grievance Procedure suggested by the National
Commission on Labour has provided for the successive time bound steps each leading to
the next in case of lack of satisfaction. At the outset, an aggrieved worker shall approach
the foreman, inform his grievance orally and seek the redressal of his grievance. If it is
not redressed to his satisfaction, he approaches the supervisor who has to give a
decision to the complaint of the worker within 48 hours. If the decision (answer) is not
acceptable to the worker or if the superior does not give an answer, the worker can go to
the next step. At the third stage, the worker can, either in person or accompanied by his
departmental representative, approach the head of the department who has to give an
answer before the expiry of three days. If the department head fails to do so or if the
decision given by him is not acceptable to the worker, then the worker can resort to the
Grievance Committee which comprises of the representatives of employers and
employees. This Committee shall communicate its recommendations to the manager
within seven days of the grievance reaching it. If there are unanimous decisions, these
shall be implemented by the management. In case unanimous decisions have not been
arrived at, the views of the members of the Committee shall be recorded and all the
relevant records shall be placed before the manager for decision. The manager shall
communicate his decision within three days. The worker has got a right to appeal
against the manager’s decision. These appeals shall be decided within a week. If the
aggrieved desires, he can take along with him a union official for discussion with the
authority. In case a decision has not been arrived at, at this stage, the union and
management may refer the grievance to voluntary arbitration within a week of receipt of
the management’s decision by the worker.
GUIDELINES FOR GRIEVANCE HANDLING:
The primary purposes of a grievance procedure are to:
(1) channel conflict into an institutionalized mechanism for peaceful resolution;
(2) facilitate communication between labor and management regarding problems that
arise in a collective bargaining relationship;
(3) enable employees to complain with dignity knowing that there is a system of appeals

leading to an impartial decision-maker; and
(4) enforce compliance with the terms and conditions negotiated by the parties.
Handling Employee Grievance:
The following checklist is provided as guidance when an employee comes to you with a
complaint:
●Make sure that meetings with employees to handle complaints are held in accordance
with any contract provisions that regulate the time and/or location for such meetings.
Develop good listening and note taking skills.
●Be prepared to spend the time to get the evidence and testimony to support your case
and to refute management’s case. Treat all employees fairly and consistently.
●Do not make judgments about the case to the employee or anyone else until you get the
facts. Keep good records of all transactions, oral and written, that occur from the time a
complaint is brought to you until the case is resolved in the grievance procedure or in
arbitration.
INTERVIEW:
●Let the employee tell his/her story without interruption. Take notes. Review the
employee’s description of the case with him/her to make sure you have all the facts.
Make sure you get the answers to the questions who, what, when, where, why and how.
●Ask the employee for the names, addresses and telephone numbers of any witnesses.
Then ask the employee to tell you what he/she thinks each witness knows about the
case. Record this information. Try to clarify any uncertainties about what a witness is
supposed to know.
●Ask the employee to give you all of the evidence he/she has concerning the case. Make
copies so that no information is lost. Before the employee leaves, check one more time to
make sure you have all the facts, names of witnesses and evidence.
REVIEW:
●Refer to the grievance procedure in the contract to make sure the issue the employee
has raised is defined as a proper subject of a grievance. If you are uncertain, ask for help.
If the issue is not a proper subject of a grievance, the best thing to do is to tell the
employee and explain how this affects his/her case.
●Check to make sure that the procedural requirements set forth in the grievance
procedure have been complied with. If there is more than one witness who knows about
a given event, note which ones would be best able to present clear testimony under the
pressure of examination and cross-examination at an arbitration hearing.
●Verify name, address, telephone, work shift and location.

ANALYSIS:
After you have thoroughly reviewed all of these matters, you may find that a complaint
is not grievable/arbitrable or that the case lacks merit. One way to proceed is to explain
your findings to the employee and ask if there is any additional information he/she has
that might have a bearing on the case. If not, you should be guided by local or
international union policy and perhaps by counsel, in determining how to handle this
situation.
FILING:
Be sure to properly and timely complete the grievance form. This includes such items as:
names; dates; signatures; clear and accurate statement of the complaint; contract
clauses alleged to have been violated; and remedy requested. This is a checklist, not a
magic wand. It highlights key points to consider in handling employee complaints. This
task is time consuming and requires the application of a number of skills. There are no
real short cuts. If you take them, an employer will usually find them at some stage in the
grievance procedure or in arbitration. The result may be very damaging involving not
only loss of a case that might have been won, but also expenditures of time, other
resources and credibility that a union can ill afford.
EMPLOYEE COUNSELING
Employees face a variety of uncertainties, issues and problems both at the work and the
family. In fact, the problems are multi-faceted involving economic, social, physical,
psychological and religious considerations. Counseling is one of the efficient
interventions to find out work and family related employee problems that affect the
work negatively. Counseling is the process of helping other persons to find and act upon
a solution to their problems, anxieties, uncertainties and issues, the person conducting
counseling is called counselor and the person being counseled is called counselee or
client.
Concept of counseling: A counselor is mostly concerned with client rather than the
problem. The counselor helps the counselee to identify his/her own problem and
develop is/her own solution rather than imposing his/her solution. Counselor helps
counselee in reaching a solution. This style involves more listening than talking.
Counselor uses questions and exploring techniques and enable the client to find out
his/her own problem. The counselor further helps the client to learn the problem
solving techniques, processes and methods that helps them to solve their problems on
their own in the future. The counselor recognizes the emotions, feelings, psychological
issues involved in the process.

Counseling can assist the employee to resolve difficulties in a supportive and
professional setting. Whether a crisis or something that has been worrying the employee
for sometime, counseling can assist the employee to understand the problem, its impact
and to develop strategies to cope with it. As employees from time to time, we can
experience difficulties either in our work or personal life. At these times, work
performance and productivity can be affected. Counseling can result in quicker and less
stressful resolution of the problems with less disruption to the workplace.Counseling is
confidential and private. Generally, no information can be released without employee’s
written authority.
Counseling is provided for work and personal issues such as: Stress , Change,
Conflict, Career planning, Communication, Trauma, Depression, Relationship issues,
Family problems, Gambling, Grief and bereavement, Anxiety, Drug and alcohol problem
& Work satisfaction
Process of Counselling: Counseling is the process of helping other persons to solve
their problems. The person conducting the counseling is known as the counselor and the
one being counseled is referred to as the counselee or client.
There are four basic styles of counseling, viz., telling, manipulating, counseling and
advising. The counseling process includes various steps viz., identifying the needs for
counseling, communicating effectively, managing the counseling interview, controlling
emotions, and follow-up.
Identifying the needs for counseling: The manager of the department concerned
identifies the counseling needs of the employees. The couselling needs may be obvious,
based on permanent lateness, irregular attendance, absenteeism, poor quality of work,
breakages at the work etc. In addition, the manager can identify the possible and
prospective problems. Counseling needs or employee problems may be classified as
personality problems, work and organizational related problems and external problems
and external problems. Personality problems are related to the image people have of
themselves and others.
Communicating effectively: Counselling is mostly done through communication. In
other words, communication plays vital role in counselling. Counselor communicates
with the counselee by practicing a three step-process, which can be repeated in the
counseling interview process. These steps are questioning, listening and responding.
The counselor should use oral, written, verbal and non-verbal communication. The
counsellor’s posture and the counsellee’s posture matter much in the counseling
process.

Managing the counselling interview: The cousnellor and the counselee should be
prepared physically, socially and psychologically before counselling interview. The
manager of the employee might have developed good and comfortable relationship with
the staff. Therefore, the suggestions of the manager should be considered by the
counselor, if the manager is not acting as a counselor. The steps in the interview process
include:
1. setting up the interview
2. creating the right interview opportunity
3. starting the interview
4. encouraging the people to talk
5. reaching the core problem
6. discovering when to ask and what to ask
7. exploring the feeling problem
8. develop and provide the solution.
Controlling emotions: counselling mostly involves understanding the feelings of the
counselee. The counselor has to gain the confidence and trust of the counselee.
Counselling will result in change in the behaviour of the counselee, which causes pain.
The counselee can express his feelings freely when the interview environment is free and
harmonious. In addition, the counselor should also control his/her emotions and
feelings so that the counselee can express his/her feelings and emotions.
Follow-up: The counselor after offering his/her advice provides the methods and step-
by-step procedure to the counselee to practise the advice. The counselor has to get
feedback from the counselee and ascertain whether the counselee is improving or not. If
not, he /she has to modify the advice and follow-up further. Thus, the counselee should
ensure the permanent solution to the problem and improvement in the counselee.
DEFINITION OF COLLECTIVE BARGAINING
The phrase ‘Collective Bargaining’ is coined by Sydney and Beatrice Webb. According to
them, collective bargaining is a method by which trade unions protect and improve the
conditions of their members’ working lives. According to the Encyclopedia of Social
Sciences, “collective bargaining is a process of discussion and negotiation between two
parties, one or both of whom is a group of persons acting in consent. The resulting
bargain is an understanding as to the terms and conditions under which a continuing
service is to be performed. More specifically, collective bargaining is a procedure by
which employers and a group of employees agree upon the conditions of work.”
Functions of Collective Bargaining: Collective bargaining plays an important role
in preventing industrial disputes, setting disputes and maintaining industrial peace by

performing the following functions:
●Increase the economic strength of employees and management.
●Establish uniform conditions of employment.
●Secure a prompt and fair redressal of grievances.
●Lay down fair rates of wages and other norms of working conditions.
●Achieve an efficient functioning of the organization.
●Promote the stability and prosperity of the company.
●It provides a method of the regulation of the conditions of employment of those who
are directly concerned about them.
● It provides a solution to the problem of sickness in the industry and ensures ole- age
pension benefits and other fringe benefits.
●It creates new and varied procedures for the solution of the problems as and when they
arise-problems which vex industrial relations; and its form can be adjusted to meet new
situations. Since basic standards are laid down, the employee is assured that he will be
required to work under the stipulated conditions incorporated in the agreement and the
employer is protected from unfair competition by those who are engaged in a similar
industry.
●It provides a flexible means for the adjustment of wages and employment conditions to
economic and technological changes in the industry, as a result of which the changes for
conflicts are reduced.
●As a vehicle of industrial peace, collective bargaining is the most important and
significant aspect of labour management relations, and extends the democratic principle
from the political to the industrial field.
●It builds up a system of industrial jurisprudence by introducing civil rights in the
industry. In other words, it ensures that the management is conducted by rules rather
than by arbitrary decisions.
Collective Bargaining Process: There are two stages in collective bargaining, viz., (i)
the negotiation stage and (ii) the stage of contract
1. Negotiation
a) identification of problem: The nature of the problem influences the whole process-
whether the problem is very important that is to be discussed immediately or it can be
postponed for some other convenient time, whether the problem is problem is minor
that it can be solved with the other party’s acceptance on its presentation and does not
need to involve the long process of collective bargaining process etc.
b) preparing for negotiations: When it becomes necessary to solve the problem
through collective bargaining process, both the parties prepare themselves for

negotiations.
c) Negotiations of agreement; Usually, there will be a chief negotiator who is from
the management side. He directs and presides over the process. The chief negotiator
presents the problem, its intensity and nature and the views of both the parties. When a
solution is reached at, it is pt on the paper, taking concerned legislations into
consideration. Both the parties concerned, sign the agreement which, in turn, becomes a
binding contract for both the parties.
2. Contract Administration: Implementation of the contract is as important as
making a contract. Management usually distributes the printed contract, its terms and
conditions throughout the organization. The union takes steps to see that all the workers
understand the contract and implement it. From time-to-time depending on changing
circumstances, both the parties can make mutually acceptable amendments.
Causes for the Limited Success of Collective Bargaining in India: Though it is argued
that collective bargaining has grown in India due to statutory provisions, voluntary
measures, Industrial Truce Resolution of 1962 and the amendments to the Industrial
Disputes Act, 1947, its success is limited. The causes for its limited success are:
1. Problems with unions: Collective bargaining process mainly depends on the
strength of unions. But still there are not many strong unions in India. Unions are
marked with multiplicity, inter and intra-union rivalry, weak financial position and non-
recognition. Weak trade unions cannot initiate strong arguments during negotiations.
There is usually no unanimous decision among workers to be presented at the
negotiating table.
2. Problems from Government: The Government has not been making any strong
effects for the development of Collective Bargaining. The Government has imposed
many restrictions regarding strikes and lock-ours, which is an obstacle for the
development of collective bargaining process.
3. Legal Problems: Now adjudication is easily accessible. As such now collective
bargaining process is losing its importance.
Maintenance of HR: Organisation provide a variety of fringe benefits. Dale Yoder and
Paul D. Standohar classified the fringe benefits under four heads as given hereunder:
For employment security: Benefits under this head include unemployment insurance,
technological adjustment pay, leave travel pay, over for maternity, leave for grievances,
holidays, cost of living bonus, call-back pay, lay-off pay, retiring rooms, jobs to the
sons/daughters of the employees and the like.

For health protection: Benefits under this head include accident insurance, disability
insurance, health insurance, hospitalization, life insurance, medical care, sick benefits,
sick leave, etc.
For old age and retirement: Benefits under this category include: deferred income
plans, pension, gratuity, provident fund, old age assistance, old age counseling, medical
benefits for retired employee traveling concession to retired employees, jobs to sons
/daughters of the deceased employee and the like.
For personnel identification, participation and stimulation: This category
covers the following benefits: anniversary awards, attendance bonus, canteen, co-
operative credit societies, educational facilities, beauty parlour services,housing, income
tax aid, counseling, quality bonus, recreational programmes, stress counseling, safety
measures etc.
Employee Security: Physical and job security to the employee should also be
provided with a view to promoting security to the employee and his family members.
The benefits of confirmation of the employee on the job create a sense of job security .
further, a minimum and continuous wage or salary gives a sense of security to the life.
The Payment of Wages Act, 1936, The Minimum Wages Act, 1948, and the Payment of
Bouns Act, 1965, provide income security to the employees.
Safety and Health: Employee’s safety and health should be taken care of in order to
protect the employee against accidents, unhealthy working conditions and to protect
worker’s capacity. In India, the Factories Act, 1948, stipulated certain requirements
regarding working conditions with a view to provide a safe working environment. These
provisions relate to cleanliness, disposal of waste and effluents, ventilation and
temperature, dust and fume, artificial humidification, over-crowding, lighting drinking
water, public utility and spittoons. Provisions relating to safety measures include
fencing of machinery, work on or near machinery in motion, employment of young
persons on dangerous machines, striking gear and devices for cutting off power, self-
acting machines, easing of new machinery, probation of employment of women and
children near cotton openers, hoists and lifts, lifting machines, chains, ropes and lifting
tackles, revolving machinery, pressure plant, floors, excessive weights, protection of
eyes, precautions against dangerous fumes, explosive or inflammable dust, gas etc.
Precautions in case of fire, power to require specifications of defective parts of test of
test of stability, safety of buildings and machinery etc.
Welfare and Recreational Facilities: Welfare and recreational recreation include:
(a) Canteens: (b) Consumer societies: (c) Credit societies: (d) Housing; (e) Legal aid: (f)

Employee counseling: (g) Welfare organizations; (h) Holiday homes; (i) Educational
facilities; (j) Transportation: (k) Miscellaneous.
Old Age and Retirement Benefits: Industrial life generally breaks the family
system. The saving capacity of the employee is very low due to lower wages, high living
cost and increasing aspirations of the employees and his family members. As such,
employers provide some benefits to the employees after retirement and during old age,
with a view to create a feeling of security about the old age. These benefits are called old
age and retirement benefits, these benefits include: (a) Provident Fund; (b) Pension; (c)
Deposit linked insurance; (d) Gratuity and (e) Medical benefit.
Corporate social responsibility:
Corporate social responsibility is becoming an increasingly important priority for many
CEOs across the world, and HR has a vital part to play, writes Robin Kramar Corporate
social responsibility (CSR) and sustainable development is gaining increasing
prominence in the global business culture, as many businesses attempt to accommodate
the CSR agenda. The concept of corporate sustainable development is still the subject of
controversy and therefore the indicators used to measure CSR continue to be the topic
of debate. However, no matter what indicators are used, the notion of responsibility
includes responsibility for people in the collective sense (such as communities) and also
for individuals.
The criteria used to measure workplace practices relate specifically to HR practices. The
criteria include: employee involvement; fair and reasonable rewards and conditions; a
positive commitment to diversity and work-life balance; industrial relations
arrangements based on mutual respect; occupational health and safety arrangements;
executive remuneration that is fair and reflect the concerns of internal stakeholders;
independently verifiable performance measurement and evaluation systems and
training and development policies. These criteria indicate that an organisation that is
seen as socially responsible creates a culture that is perceived as open, fair and attractive
to potential and existing employees.
Research demonstrates CSR initiatives have a positive impact on employee morale,
motivation, commitment, loyalty, training, recruitment and turnover. Benefits in these
areas have been found to improve the bottom line of companies. Three surveys across
Europe, the USA and a survey involving 25 countries found employees felt greater
loyalty, satisfaction and motivation when their companies were socially responsible.
A recent survey of 257 CEOs by Korn/Ferry shows that 65 per cent of CEOs are taking
responsibility for managing company reputation. Almost three-quarters of the CEOs
regarded recruitment and retention as the main business objective of corporate

reputation and almost the same percentage identified the hiring and retaining of key
and talented people as one of the three top objectives of corporate and social
responsibility initiatives. These HR concerns were regarded as more important than
more commercial and business outcomes.
Therefore, corporate initiatives can contribute to the branding of organisations in the
labour market. These initiatives can make the organisation attractive to employees with
similar values and so assist the organisation to become an employer of choice for these
potential employees. And, if it lives out the values and initiatives on a daily basis it will
assist the retention of desirable employees.
Global HRM :
Global HRM refers to Human Resource Management practices that deal with managing
a diversity of workforce from all around the world.
The following challenges are being faced by HR managers in terms of globalization:
- Managing diversity of workforce.
- Managing pressures for more labor rights in third world countries.
- Managing Outsourcing of employees.
- More part-time and temporary work
- Managing productivity and Quality
- Downsizing the workforce
- Coping with flexible working hours
The globalization of Business has had a significant impact on human resource
management. Even though there has been large scale regional integrations, such as the
European Union, human resource manage across borders is very different and can be
quite difficult for a Human Resource Professional un-accustom to cross border
management. The purpose of this course is gain insights into employee relations from a
cultural and international perspective. One would tend to think that Human Resource
management in one country would be much like it is in another country. There are
similarities in the human resource function from one country to another however; due
to cultural differences the human resource function can also be quite different. We must
first define the Field of Human Resource Management. According to Peter Dowling in
International Human Resource Management, “Human resource management is those
activities undertaken by an organization to utilize its human resources effectively.”

These activities include but are not limited to, human resource planning, staffing,
performance management, training and education, compensation and benefits, and
labor relations. We must consider what, if any, changes to the above definition occur
when a company goes international or global. When the human resource activities are
spread across different countries therefore, different types of employees must be
considered. Employees from the parent company or Parent Company Nationals (PCNs),
this is the expatriate manager or technical professional assigned to a different country.
The next type of employee is the Host Country National (HCNs), this is an employee of
the company form the country which hosts the subsidiary. The last type of employee is a
Third Country National (TCNs), these employees are from a country that is neither the
host nor the parent country. This expatriate also may be from another subsidiary owned
by the parent company.
These multi-country nationals lead to issues generally not associated with Human
Resource Management (HRM), such as international taxation, international relocation,
administrative services for expatriates, and government relations. For example D.L.
Pinney discusses tax reimbursement for expatriates because expatriates are subject to
international tax and often have domestic tax liabilities; it is therefore incumbent on a
company to provide tax equalization. If there is no tax equalization much of the
incentive and motivation for the overseas assignments would be lost.

Integration & Quality of Work Life by Raja Rao Pagidipalli

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