Employee relations and rewards seminar

1. EMPLOYEE RELATION
AND REWARD
Dinesh KC
Narendra Yadav
Shreejana Shrestha
Ankit Khanal
Sanju Shakya

2. EMPLOYEE RELATION AND REWARD
A well planned Employee Relations and reward
system is a key to success for healthy
environment, balanced relation where employer &
employee both are completely satisfied and finally
to avoid all the conflicts at work place to get
desired results to reached the organizational
goals.

3. Employee Relations And Reward
The term 'employee relations' refers to a
company's efforts to manage relationships
between employers and employees.
An organization with a good employee relations
program provides fair and consistent treatment to
all employees so they will be committed to their
jobs and loyal to the company.

4. Importance
To develop and maintain harmonious relations
between management and labour so essential for
higher productivity of labour and industrial progress
in the country.
To safeguard the interests of labour as well as
management by securing the highest level of mutual
understanding and goodwill between all sections in
industry.

5. Cont……
• To avoid all forms of industrial conflict so as to
ensure industrial peace by providing better
working and living standards to workers.
• To raise productivity in an era of full
employment by reducing the tendency of
higher labour turnover and absenteeism

6. DEFINATIONS AND CONCEPTS
• Employee relations consist of all those areas of human resource
management that involve relationships with
• Relationship will be concerned with the agreement of term and conditions
of employment and with issues arising from employment.
• Employee relations practices include formal processes, procedures and
channels of communication.
Employee-
Directly
Employee-
Directly
Collective
agreements where
trade unions are
recognized.
Collective
agreements where
trade unions are
recognized.

7. • Employee relations programs focus on issues
affecting employees, such as
Pay and
Benefits
Work-life
Balance
Safe
working
Conditions

8. Out View on ER
• Employee Relation is a much broad concept. It is one of the
most important function of the management that is take care
by HR department. ER department takes care of
•Employee Grievances
•Employee recognition
boosting the morale of employees
to make the working environment more
healthy,
fulfills the management’s expectations
and maintain the work culture and ethics.
•Employee Grievances
•Employee recognition
boosting the morale of employees
to make the working environment more
healthy,
fulfills the management’s expectations
and maintain the work culture and ethics.

9. Type of Relationship Within The Organization

10. Employer & Employee
Relationship
(Downward
Communication)
•Training & Induction
•Benefits
•Safety
•Career Development &
Job Opportunities
•Stress Management &
Recreation Facilities
•Collective Problem
Solving
•Involvement &
Engagement
•Reward & Recognition
Employer & Employee
Relationship
(Downward
Communication)
•Training & Induction
•Benefits
•Safety
•Career Development &
Job Opportunities
•Stress Management &
Recreation Facilities
•Collective Problem
Solving
•Involvement &
Engagement
•Reward & Recognition
Employees &
Employer Relationship
(Upward
Communication)
•Feed Back
•Performance
Appraisal
Employees &
Employer Relationship
(Upward
Communication)
•Feed Back
•Performance
Appraisal
Among Themselves
(Horizontal
Communication)
•Annual Events
•Welfare Activities
Among Themselves
(Horizontal
Communication)
•Annual Events
•Welfare Activities

11. Factors Influencing Employee Relations
• Institutional Factor
• Economic Factors
• Technological Factors
• Psychological Factors
• Political and legal factors
• Global Factors

12. Institutional Factors
HR policies and practices
Organizational climate and culture
and value system
Adaptability to change
Codes of conduct
Collective bargaining agreements
Labor unions
Employers’ organizations/
Federations
Institutional Factors
HR policies and practices
Organizational climate and culture
and value system
Adaptability to change
Codes of conduct
Collective bargaining agreements
Labor unions
Employers’ organizations/
Federations
Economic Factors
Type of ownership: public or private
limited, Whether domestic or MNC,
Govt. or private sector
Nature and composition of the
workforce
The source of labour
Labor market status
Disparity of wages between groups
Level of unemployment
Technological Factors
Work methods
Type of technology
Rate of technology change
Ability of Organizations and
people to cope with change

13. Psychological Factors
Owners’ attitude
Perception of the workforce
Workers’ attitude towards work
Their motivation, interest,
dissatisfaction and boredom leading
from man- machine interface.
These have a great impact on job and
personal life factors and hence indirectly
impact ER
Psychological Factors
Owners’ attitude
Perception of the workforce
Workers’ attitude towards work
Their motivation, interest,
dissatisfaction and boredom leading
from man- machine interface.
These have a great impact on job and
personal life factors and hence indirectly
impact ER
Political And Legal Factors
Prevalent Political Philosophy
Attitude of government
The ruling party/ ideology
Labour laws and The legal framework
for IR
Changes in the above framework
Political And Legal Factors
Prevalent Political Philosophy
Attitude of government
The ruling party/ ideology
Labour laws and The legal framework
for IR
Changes in the above framework

14. Determining Factors Of Employee
Relation
• Better education
• Nature of industry
• Monetary benefits
• Safety & security
• Grievance handling
• Recognition & appreciation
• Scope for advancement
• Style of management
• Participation in decision making

15. Issues in ER
These emerging issues will have an influence upon your
workplace. An awareness of these issues will help
management to better plan and respond to changes in the
workplace.

16. Why these issues/ How to
mitigate employee relation
issues?
• Reward and recognition.
• Remuneration
• Facilities and support

17. INTRODUCTION:
 A thing given in recognition of one's service, effort, or
achievement.
 Reward refer all of the monetary, non-monetary and
psychological payments that an organization provides
for its employees in exchange for the work they
perform.
 Reward is an objective way to describe the positive
value an individual ascribes to an object, behavioral act
or an internal physical state.

18. Why Reward are given ?
• Express appreciation
• Recognize values
• Provide
encouragement
• Compensate for taking
and sharing risk
• Provide choices
• Simply make things fun

19. Types Of Reward
1. Intrinsic versus extrinsic rewards
2. Financial versus Non Financial rewards:
3. Performance based versus membership
based reward

20. Benefits of employee reward system:
 Benefits:
 Helps an employer differentiate
between the performance of high and
low performing employees.
 Allows an employer to differentiate
between the performance of the
company as a whole and the
performance of an individual.

21. Challenges of employee reward
system:
 Here is no way, with 100% accuracy, to
differentiate the performance of various
employees to determine who is most
deserving.
 Reward not understood by people.
 Reward not linked to company business.
 Rewards not linked to the job to be
performed.
• Inferiority complex for subordinates.
• Nepotism and favoritism

22. Some Best Practices
1. System Oriented Management Run Company
2. Handsome Remuneration with Performance Based Reward
System.
3. Performance Based Growth Opportunities
4. Opportunity to Work in Different Areas (Inter-Department
Shifts, Sister/Group Company Shifts)
5. Training and ExposureTraining Opportunities:
• In-house and abroad trainings (XLRI, IIM etc.)
• Exposures: International Plant and Market Visits;
Participation in Workshops, Seminars, Auto Shows.
Sipradi’s Key Platforms of Relationship & Reward

23. Benefits & Welfare
Monetary
Benefits
Industry Competitive
Salary Package
Performance based
Incentive
Annual Bonus
Festival Bonus
Medical & Accidental
Insurance
Performance based
Increments
Employee
Welfare
Housing loan facilities
Welfare loan facilities
Vehicle loan facilities
Provisions Gratuity
Non Monetary
Benefits
Performance based
promotions and transparent
careerladder
Training and development
programs
International Exposure
Visits

24. Some Best Practices
Surya Nepal Pvt. Ltd.
Surya Nepal Private Limited (SNPL) is an Indo-Nepal-UK joint venture, which
started operations in Nepal in 1986. Surya Nepal Private Limited is one of the
largest private sector enterprises in Nepal and a subsidiary of ITC Limited, India.
The balance shares are held by Local Nepalese individuals & Corporate
shareholders and British American Tobacco (Investment) Limited, UK.
SNPL is currently engaged in the business of Cigarettes, Safety Matches,
Agarbatti and Readymade Garments in Nepal. SNPL’s commitment to its
corporate vision “enduring value for all stakeholders” has been uncompromising
through the years and is reflected in every product, process and service provided
by the company.

25. Sipradi’s Key Platforms of Relationship & Reward
1.System driven management
2. HR strategies based on company strategies
3. Most recruitment based on reference
4. High Training and Development
opportunities to each employee.
Tailormade/specialized training
programs (even in foreign countries)
5. Birthday gifts, get together, picnics, sport
weeks, cultural events, etc (social events)
6. Medical insurance comparable to best in
the industry
7. Housing facility to employees – ISO &
OHSAS certified
8. Custom Employee Engagement program
across the units. Welfare programs catering to
the extracurricular requirements of employee
and family members
9. Salary based on industry survey
10. Custom recognition programs in all units
1.System driven management
2. HR strategies based on company strategies
3. Most recruitment based on reference
4. High Training and Development
opportunities to each employee.
Tailormade/specialized training
programs (even in foreign countries)
5. Birthday gifts, get together, picnics, sport
weeks, cultural events, etc (social events)
6. Medical insurance comparable to best in
the industry
7. Housing facility to employees – ISO &
OHSAS certified
8. Custom Employee Engagement program
across the units. Welfare programs catering to
the extracurricular requirements of employee
and family members
9. Salary based on industry survey
10. Custom recognition programs in all units
11. Participative IR management
12. Loan scheme as per level of
employment
13. Subsidized canteen
14. Annual Performance appraisal
system and planned succession
planning
15. Systems and checks to ensure
100% statutory compliance
Compliant management practices
17. Presence of long term Strategies
18. Good rapport with government
bodies and stakeholders
19. Periodical medical checks based on
age.
20. Employee Mentorship program
21. Custom CSR programs across all
units
22. World class EHS compliance
23. Automated ERP based payroll
systems
11. Participative IR management
12. Loan scheme as per level of
employment
13. Subsidized canteen
14. Annual Performance appraisal
system and planned succession
planning
15. Systems and checks to ensure
100% statutory compliance
Compliant management practices
17. Presence of long term Strategies
18. Good rapport with government
bodies and stakeholders
19. Periodical medical checks based on
age.
20. Employee Mentorship program
21. Custom CSR programs across all
units
22. World class EHS compliance
23. Automated ERP based payroll
systems

26. What does statistics says
about reward system:
• Nearly 75% of organizations have a reward program (despite the
fact that only 58% of employees think that their organizations
have reward programs)
• Organizations with recognition and reward programs which are
highly effective at enabling employee engagement had 31%
lower voluntary turnover than organizations with ineffective
recognition programs (
Bersin by Deloitte, The State of Employee Recognition, 2012)
• Only 14% of organizations provide managers with the necessary
tools for rewards and recognition (
Aberdeen Group, The Power of Employee Recognition, 2013)
• 46% of senior managers view recognition programs as an
investment rather than an expense. (
WorldatWork, Trends in Employee Recognition, 2013)
• In 2013, “67% of Best-in-Class organizations have a formal
recognition program in place, compared to 58% of Best-in-Class
organizations in 2012.” (Aberdeen Group, The Power of
Employee Recognition, 2013)
• A full 14% [of companies] indicated that their organization
features [reward] programs regularly when recruiting.”
(WorldatWork, Trends in Employee Recognition,2011)
• Organizations with strategic recognition and reward programs in
place exhibit 28.6% lower frustration levels than companies
without recognition programs. (SHRM/Globoforce Employee
Recognition Survey, 2012)

27. A Meta-Analysis of the Relationship Between Organizational
Citizenship Behavior and Counterproductive Work Behavior.
Job performance is increasingly being seen to encompass constructs
such as organizational citizenship behavior (OCB) and
counterproductive work behavior (CWB).
To clarify the OCB-CWB relationship, a meta-analysis was conducted
indicate a modest.
The relationship strength did not increase appreciably when the target
of the behavior (the organization vs. other employees) was the same.
Moreover, OCB and CWB exhibited somewhat distinct patterns of
relationships with antecedents.
The OCB-CWB relationship was moderated by the source of the
ratings, the presence of antithetical items, and the type of response
options. An employee-centric perspective is proposed whereby both
OCB and CWB are perceived as adaptive behavior. Implications for
organizations are discussed. (PsycINFO Database Record (c) 2016 APA,
all rights reserved)

28. A critical examination of Hofstede's thesis and its
application to international reward management
Hofstede's model has been extensively used and applied in
international management. This study begins with a critique
of Hofstede's thesis.
The applicability of his framework is then tested using a cross-
cultural comparison of reward preferences in four countries.
The findings reveal that although his framework provides both
theoretical and practical contributions to the reward arena,
the proposition that human values are conditioned solely by
national culture ignores the potential influence of a variety of
other contextual factors.

29. It is essential that people are comfortable with each other and
work together as a single unit towards a common goal.
It is important that employees share a healthy relation with
each other at the work place. Let us find out why employee
relations are important in an organization
It is important that the management promotes healthy
employee relations at workplace to extract the best out of
each individual through appropriate reward system
.
Thank you!

30. Reference:
• References
• http://hrmpractice.com/types-of-rewards/
• https://www.ukessays.com/essays/management/definition-and-objectives-of-reward-system-
management-essay.php
• http://www.slideshare.net/rajeevgupta/rewards-and-recognition
• https://www.linkedin.com/pulse/key-challenges-employee-reward-systems-indranil-gupta