Saturday, June 8, 2019

16. Human Resource Management


16. Human Resource Management




16.1 The importance and functions of human resource management
All the activities related to utilization of Human Resource efficiently and effectively so as to ensure the employee satisfaction and development in order to achieve the goals of an organization is known as Human Resource Management.

Human Resources have the following specialties in comparison to other resources.
·         Vitality of human resource
·         Ability to react and think
·         Ability to control all other resources
·         Increase in value through training
·         Ability to work in teams.
·         Behaviour being complex and unable to forecast
·         Possessing creative skills.

Some of the specific goals of Human Resource Management can be stated as follows
·         Improving the employee effectiveness.
·         Increasing the commitment of employees.
·         Employee development.
·         Motivating employees.
·         Employee welfare
·         Recruiting employees for the job at the right time
·         Motivation of employee.
·         Retention of suitable employees in the firm.
·         Improving the industrial relations
·         Controlling the cost of employment (salaries, overtime payments, cost of recruitment, cost of dismissal)
·         Fulfilling the social and legal responsibilities of the organization related to human resources.

The importance of human resource management can be identified in the following manner.
1)      Human resource can think feel understand and react as it is live compared to other resources.
2)      As human resource makes decisions regarding all the other resources it is the most important and valuable resource.
3)      Human resource is the vital resource that can be used to obtain long term competitive advantages and to assure the survival of the business.
4)      Managing human resource is not only a task of HR manager, but also it is the collective responsibility of all other managers of the business.
5)      Human Resource management is very important for the welfare of the society.
6)      The legal conditions in relation with employees.
7)      To minimize and control the labor turnover
8)      To motivate for leadership through employee abilities and skills
9)      To improve the quality of working life.
10)  Being easy to reach the success of the organization through employee motivation
11)  To get the use of employees’ significant characteristics/diversity
12)  Modern customers reacting positively towards the organization that have good human resource management practices
13)  Being essential to create employee development.

The functions relevant to Human Resource Management
·         Job Design
·         Job Analysis
·         Man power planning/ HR planning
·         Recruitment
·         Selection
·         Hiring
·         Induction
·         Performance Appraisal
·         Training & Development
·         Employee Movements – changes
·         Management of payments
·         Employee welfare
·         Disciplinary Management
·         Health & Safety Management
·         Grievances Handling
·        
Employer & Employee Relations.


16.2 The necessity of job designing and job analysis
Job designing
Generating or creating of a job to achieve a certain goal is the simplest idea of this. Arrangement of tasks, duties and responsibilities assigned for a work unit of the firm in order to achieve a particular goal is known as the job designing. Every job comprises of tasks, duties and responsibilities.
While a task is a work activity comprises of movements and can be identified certainly, a duty is a large part of work comprises of many tasks which is completed by an individual. Accordingly, duty is wider than a task. Responsibility is the bond over fulfilling a task in the proper way or in the expected way.
Job Analysis
Job analysis is a systematic review of the features and related behaviours of a job and the qualities and qualifications that should be possessed by the employee.
The information taken from the job analysis issued to prepare the job description and job specification.
Job Description
The statement which describes the tasks, duties, responsibilities, working conditions, payments and benefits, the number of working hours, the nature of the job and to whom she/he is responsible etc. Relevant to a certain job is the job description.
Job Specification
The document prepared containing the qualifications that should be possessed by the individuals, who would be considered for recruitment is known as the job specification.
Such qualifications can be stated as follows.
·         Educational Qualification
·         Professional Qualifications
·         Physical Fitness
·         Experience
·         Specialized Skills
·         Linguistic knowledge
·         Attitudes and passion
·         General Knowledge
·         Intelligence Level
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The differences between job description and job specification.
Job Description
1. The title of the post : ……………..
2. Nature of the duty : ..……………
3. Benefits, payments : ..……………
4. Nature of the job : ..……………
5. Number of working hours : ..……………
6.To whom is he/she responsible: .......................

Job Specification
1.The title of the post : …………
2. Educational Qualifications : ………..
3. Professional Qualifications: ……….
4. Experience : …………..
5.Specialized skills: …………..
6.Age: ………….
 


Job Description
Job Specification
1.      Describes the job
2.       A document on the characteristics of the job.
3.      It is a list of the characteristics of a job.
4.      Job specification is a part of the job description
1.      Describes the person who is appropriate to be engaged in the job.
2.      A document on human characteristics that should be to fulfil the job successfully.
3.      A list of human characteristics needed for the fulfilment of the job.
4.      Job description is not included in the job specification.





Given below are examples of job description and job specification for a post of clerk.
Job Description
Job Title : -                                       Payroll Clerk
Job Code : -                                      225
Grade : - II
Job Location : -                               Administration Unit
Supervision Received: -                  Administration Unit
Supervision Exercised: -                  None
Job Purpose : -
                                                        1. Maintain files appropriately
                                                        2.Completion of assigned duties in time
The nature of the duty: -
                                                         1. Collect reports on employees’ attendance
                                                         2. Prepare payroll
                                                         3. Prepare payroll reports
                                                         4. Computerize prepared payroll
                                                         5. Present for recommendation and approval
                                                         6. Work co-operatively with his/her employers
                                                         7. Fulfill other duties assigned by the head
Salary Scale : -                                 Rs. 24,000/- per year (without offers)
Service Conditions : -                       Working from 8.30 a.m. to 4.30 p.m.

     ………………………                                            ………………………………….
       Job Analyst                                                                               Date






Job Specification

Job Title : -                                                       Payroll Clerk
Job Code : -                                                      225
Grade : - II
Job Location : -                                                Administration Unit
Supervision Received: -                                    Chief Clerk
Supervision Exercised: -                                   None

Educational Qualification: -
1. Six credit passes in G.C.E. O/L examination including Mathematics and Sinhala
2. Three Credit passes in G.C.E. A/L examination in Commerce Stream/

Professional Qualification
1. Should have obtained NVQ certificate level 3
2. Should have obtained a certificate on the basic knowledge of computer.
Experience: -
Experience in working as a clerk in a firm at least for one year.
Prepared by: -
...………………………..                                   Date: - …………………….
Clerk of the job title
Approved by: -
...………………………..                                      Date: - …………………….
 The head of the Department






16.3 The necessity of human resource plan for the existence of an organization
The process of determining the future employee requirements and making decisions regarding the activities to be implemented to fulfill those requirements in order to achieve the goals and objectives of a firm is called Human Resource Planning.
The importance of human resources planning
·         Ability to determine the future human resources requirements
·         Ability to minimize labor cost by identifying excess and deficiencies in a laborand taking necessary actions for them.
·         Ability to avoid unnecessary cost that may occur due to sudden recruitments.
·         Ability to utilize human resources efficiently and productively.
·         Ability to lead the other management functions of the organization in the expected manner.
·         For the development of highly competent employees.
The steps of a process of Human Resources Planning 
1.      Forecasting the future Human resources requirements

2.      Assessing the Human Resources supply

3.      Comparing the demand and supply of Human Resources

4.      Developing the strategies to be implemented to recruit the Human Resources

5.      Preparing the Human Resources Planning

6.      Evaluating the efforts taken for Human resources planning

1. Forecasting the future Human Resource Requirement
Forecasting the future Human Resource Requirement is the first step of the human resource planning process. By forecasting the future influence of the factors that affect the demand of the human resources as accurately as possible, the determining of the employee requirements of the firm for the relevant period of time is called as forecasting the human resources requirements (demand)
Factors to be considered in forecasting the Human Resources requirements (demand)
(Factors influence for the human resources demand)
·         Demand for the particular goods or services
·         Objectives of the firm
·         Production method
·         Future retirements of the employees
·         Number of employees to be resigned
·         Number of employees getting promotions
·         Future projects
·         Termination of service
Assessing the human resources supply
 Assessing the human resources supply is the Second Step of the process of human resources planning. Having forecasted human resources requirements forecasted, the human resources supply should be assessed to fill the determined vacancies. There are two sources for human resources supply.
1.       Internal Supply
2.       External Supply

3. Comparing the demand and supply of Human Resources
Comparing the demand and supply of Human Resources is the third step of the process of human resources planning. The comparison between the forecasted human resources requirements and the assessed internal human resources supply will take place in this step. Accordingly, it can be identified if there is a deficiency or an excess in human resources.
4. Developing the strategies and 5. HR planning
Developing the strategies the fourth step.  Having the human resources supply and the demand compared, strategies should be decided to remove the decided surplus or the deficiency of the employees.
Examples: -If  there is a surplus in number of employees, discontinuing the recruitment, letting to retire etc…. can be done.
If there is an inadequacy in number of employees, getting overtimes done by the existing employees etc… can be done.
6. Evaluating of the efforts taken for Human Resource Planning
Evaluating of the efforts taken for Human Resource Planning should be conducted to determine the contribution provided from human resources planning for the fulfillment of the goals and objectives of the firm.
 By assessing the process the success of the process can be measured through the facts such as have unpredicted job vacancies been created? Or not? , have the vacancies been increased? Decreased? How much did it cost…? etc.


16.4 The ways of recruitment suitable people for employment in an organization.

Recruitment 
 The process of attracting the job seekers with positive attitudes and capabilities supporting the achievement of organizational goals and objectives is known as recruitment.
 Guleik W.F. -
The result of the recruitment process is the generating of a list of job seekers who may be selected or not for the job as new employees.
The functions of attraction process can be shown through the following diagram

The Recruitment Process
1. Recognizing Vacancies for job
(Man power plan, Special request for managers)
2. Studying the job Specifications
(Job analysis information, managers’ opinions)

3. Identifying the employee factors relevant to attraction
(Policies of the organization, cost time and other)

4. Preparing the application form

5. Selecting the way/ways of recruitment
(Internal/External)
6. Implementation
(Applying for vacancies by individuals and receipt of applications)


7. Evaluation


The recruitment policy is the most important factor that influences the recruitment apart from that, the cost time and labour market conditions are also will be considered.  The sources of attraction are mainly classified as
·         Internal sources of recruitment
·         External sources of recruitment
Internal sources of recruitment
Attracting employees from the firm itself is the internal recruitment.  Followings are some methods of internal recruitment
Method
Explanation
1.       Job posting

Notifying about the vacancies by publishing advertisements in firm newspaper, magazines and on the notice boards in the firm.

2.      Skills Inventory/Skills List

For the identification of internal employees who are capable of applying for the relevant job vacancies, the usage of skill inventory prepared at man power planning by entering the skills, abilities and qualifications of employees.

3.      Intranet

Calling for applications through publishing the advertisement about the job vacancies in intranet
4.       Referrals from internal employees

Recommending the acquainted individuals like one’s associates and relations by current employees for the vacancies.

5.      Succession Plan

Formal documents are maintained in a firm with regard to the facts like the qualification, experience and seniority etc. of the employees. When a vacancy arises the next most suitable individuals will be used for it.


.
 The advantages and disadvantages  of internal employee recruitment
Advantages
Disadvantages
·         Employees being motivated
·         Creating good labor relationship
·         Easy to retain the most suitable employees
·         Reduction in the cost of attraction and recruitment.
·         Increase in the loyalty and dedication of the employees towards the firm.
·         Reduction in time spent for employee induction

·         Modern knowledge doesn’t flow in to the firm.
·         Chances for recruiting the most suitable individuals being less.
·         Creating an unnecessary competition among the workers.
·         Incurring a high cost for training.
·         Innovations don’t inflow.



External recruitment
External recruitment is the attracting applicants for the posts of a firm from outside the firm
Few methods of external recruitment
1.      Through media advertisements (electronic/printed)
2.      Through internet/web pages for jobs
3.      Through past employees
4.      Through educational, professional and vocational institutions
5.      Through job agencies
6.      Through professional associations
7.      Through job fairs
8.      Through higher educational institutes.

The advantages  and dis advantagesa that a firm gain through external employee’s attraction
Advantages
Disadvantages
·         Ability to attract individuals with new knowledge
·         Ability to recruit the most suitable individuals for the post
·         Reduction in the cost for training and development since the recruitment of trained labour taking place
·         Obstructing motivation of existing employees
·         Increase in the cost of attraction
·         Consuming more time for attraction
·         It may adversely affect the employer employee relationship


16.5 The job advertisement to recruit employees
The document prepared including the required particulars for attracting individual to the organization can be introduced as a job advertisement.
 Few information contained in an advertisement
·         Title of the post
·         Professional and educational qualifications
·         Name of the firm
·         Experience
·         Age limit
·         Salary Scale
·         Service conditions
Some pictures and exemplary statements etc… can be included in an advertisement prepared including the above information. In order to increase the individual attraction.

A prepared job advertisement can be published through the following various media
·         Newspapers
·         Internet
·         Television
·         Radio
·         The government gazette
·         Posters
·         Notice boards
·         Leaflets
Among the above media, the most suitable media can be selected to publish the job advertisement.
Example: When selection should be conducted for Sri Lankans, publishing That job advertisement in a local newspaper is more appropriate.
16.6 Suitable methods to select suitable applicants from the attracted applications

Selection
 Recognizing the best applicants to fill the vacancies from those who were attracted is known as selection.
Few methods used generally to select the most suitable person for the vacancy.
1.      Application Evaluation
2.      Interviews
3.      IQ Tests
4.      Personality Tests
5.      Practical Tests
6.      Medical Tests
7.      Background Tests

Application Evaluation
The description that the candidate sends to firm for the job vacancy by mentioning his/her qualifications and feasibility etc… is known as  application. Through such application, assessing the appropriateness and accordingly selecting thenmost suitable person can be done. Here the selection is done according to the details provided in the application without seeing the person.
Interview
 
The selection method where the exchange of ideas Face to face between the candidate and the examining board takes place meeting the most suitable candidate for the job is the interview method.
Intelligence Quotient Testing 
The testing held aiming to measure the intelligence capacity of the candidate for the job is meant by This. Here, the ability to face challenges will be examined.
Personality Test
The testing used to measure the attitudes, passion, skills, values and norms of the candidate of the job is the personality test.
Practical Test
The testing conducted for measuring the real ability of the selected individual to accomplish the certain task of the relevant job is the practical test.
Examples :  Computer data processors , Nursing service
Medical Test
The testing conducted to verify if the job candidate possesses the required health condition to accomplish the tasks, duties and responsibilities of the relevant job is the medical test. The medical test is conducted for the most of the jobs.

Background Test
The special testing conducted to disclose the personal background of the job candidate. The family background education, profession, financial and social background etc… will be investigated here.
Examples : -   For selecting police officers,
For the posts of top level managements, this method is used
No matter which of these methods is used, there are few factors to be considered in selecting personnel.
·         Knowledge
·         Attitudes
·         Skills
·         Mental & Physical fitness
These facts can be revealed through the above testing method
16.7  The procedure of selection
The process of appointing the most eligible individuals to the job posts after selection is known as selection.
The bases in which employees can be appointed 
·         Permanent base
The recruitment of employees permanently for a job of a firm is the recruitment of employees on permanent base. The employee who has been recruited like this is be a considered one in the permanent staff and engages in the main functions of an organization. He is entitled for all the privileges of an employee. The probationary period is mentioned in the appointment letter as well.
·         Temporary base
Recruiting employees without permanent base is the recruitment of employees on temporary base. While these employees also can engage in the main functions of the firm, in their appointment letter the temporary base is mentioned. 
Appointment letter 
The legal document issued by the management after the employee is being appointed stating the terms, conditions, tasks, duties and responsibilities of the job in detail is known as the letter of appointment
 Preparing the letter of appointment is necessary in process of recruitment. Since the terms and conditions of each post is different, separately prepared formats of appointment letters are used.
.The letter of appointment is considered as a written proof that the job contract is formed. Since the letter of appointment is a legal document it is important for the employee as well as the employer.
The importance/necessity of the letter of appointment 
1.      Being a document that could prove the relationship between the firm and the employee.
2.      It could be considered as a contract in which the firm and the employee is bound legally.
3.      Ability to present this as evidence in front of the law at a problematic situation created between the two parties regarding job conditions.
4.      The employee being able to get a wide acknowledgment regarding the tasks, duties and responsibilities of his job.
5.      Being strong evidence that could be used at every time required to prove that this employee is an employee of the firm.
6.      In the case of some positions, a job contract also should be singed in addition to the letter of appointment.
Some of the important facts consist in an appointment letter.
1. Title of the position
2. Name of the employer and the employee
3. Effective date of appointment
4. Job conditions
5. Salary Scale
6. Probationary period
7. Number of working hours/days
8. Benefits
9. Disciplinary procedure
10. Rights and privileges of the employee (leaves, EPF, ETF)
11. Termination of the service
12. Way to forward grievances
13. Confirmation and promotions
14. Signature of the employer and employee
Induction.
Introducing a newly recruited employee to the organization and make him/her aware about the job, work team, work environment and the entire organization is known as induction. Various techniques such as employee brochures, leaflets, getting seniors for speaking with newly recruited employees, video films, tours inside the institute and lectures etc… are used for induction.
Probationary period 
The period of service that should be completed by a newly recruited employee prior to be made him/her permanent in the job is the probationary period. The management can take the following actions in the absence of proper performance of duties and responsibilities by an employee during the probationary period.
·         Termination of service
·         Warning verbally and in written form
·         Extending the probationary period
·         Transferring to another department
The performance appraisal 
The performance appraisal is the process of supervising and reporting to what extent the relevant duties are performed successfully by the employee.
Several benefits gained by the employer and employee through performance appraisal

 Employer
Employee
·         To recognize the training needs
·         To make decisions on promotion and transfers
·         To take disciplinary actions.

·         Enhancing the employee productivity
·         Increasing the employee motivation
·         Recognizing the training needs


Training and development
The provision of knowledge, skills and attitudes to non-managerial employees which is required to perform their duties well is known as “training”.
The set of actions taken by concerning the improvement of the future performance of the employees than the performance level at present is known as “development”


 Differences between training and development
Training
Development
·         Provision of job related knowledge, skills and attitudes to the employees in non-management level.
·         Preparing the employee to perform the duties and responsibilities of the current job by this.
·         Relatively a short term program.
·         The cost incurred is relatively low.
·         Somewhat a simple program
·         This is related to the current job
·         A process of reacting for the fulfilment of timely needs.
·         Provision of knowledge, skills and attitudes to the employees in management level.
·         A process of pre acting for the fulfillment of prospective job requirements.
·         Relatively a continuous long term program.
·         The cost incurred is relatively high.
·         A very wide program.
·         This is related to make future changes.
·         A process of pre acting for thev fulfilment of prospective needs.

Some benefits gained by the employer through training and development
1.      Improvement in employee performance and updating their knowledge and skills.
2.      Improvement in the quality of the output.
3.      Creating an employee motivation
4.      Enhancing employee loyalty.
5.      Lowering the faults and wastage incurred by employees.
6.      Minimizing employee absenteeism
7.      Minimizing employee turnover.
Several benefits gained by the employee through training and development
1.      Enhancement of the job satisfaction
2.      Improvement in employee performance
3.      More chances of getting promotions
4.      Improvement in the professional value of the employee
5.      More opportunities to test new skills
6.      Ability to gain extra benefits
Various methods used for training and development of the employees
1.      Apprenticeship training
2.      On the job training
3.      Job rotation
4.      Role play
5.      Training and development programs
6.      Simulation
Employee movements
Changes in the position of the employees are known as employee movements. Several methods that can be used to move employees.
·         Promotions
·         Transfers
·         Dismissal
·         Termination
 Promotions
Promotion means an employee of an organization being appointed to a higher position than the previous one. The promotion is generally a movement to another position which consists of more duties and responsibilities than the previous position.
 Transfers
Replacing an employee for the same job can be called as transfer. Transfer is a movement that takes place in horizontal direction.


 Dismissal.
Discontinuing the service of an employee due to factors or a fact which cannot be controlled by the management of the organization is the dismissal.
Termination 
Moving out of the service when the age of the employee is completed is the termination of the service. 
16.7 The evaluation criteria of the success of human resource management
Performance appraisal
The performance of the human resources should be appraised for the success of the human resource management. Few criteria for performance appraisal are as follows.
·         Layout turnover
·         Employee absenteeism
·         Labor productivity
·         Industrial relations
·         Labor turnover
The rate at which employees leave the firm during a particular period is known as labor turnover/employee turnover. The labor turnover being a low rate is appropriate for the successfulness of the human resources management. Labor turnover can be calculated as follows.
                             No of employees left during a period                   x 100
Labour turnover =  average no of employees employed during that period
 




Labour Absenteeism
The lost in service due to employees not attending to the job is known as labour absenteeism
Some instances where the firm doesn’t get the service
·         Not attending to duty
·         No provision of service after reporting to the duty.
·         Having more time for internal
·         Arriving latte
·         Depicturing before the due time
Labor Productivity

Labour productivity  =  Out put                         .
                                      Number of employees
The relationship between the employee inputs and the outputs is known as labor productivity. It is better to have a high value of labor productivity for the successfulness of the human resource management. Labor productivity can be calculated as follows.





Industrial Relations
Any type of professional relationship between the employers – employee is known as industrial relations. There should be a proper relationship between the employers and employees in the firm for the successfulness of the human resource management. It assists the employees to continue their duties enthusiastically and satisfactorily.
Accordingly, there are various benefits from favourable industrial relations and there will be various problems through unfavourable industrial relations.

Benefits of favourable industrial relations
The adverse effect from unfavourable industrial relations
·         Improvement in labor productivity
·         Minimizing the waste of the resources
·         Lowering the employee absenteeism
·         Lowering the employee turnover
·         Creating a team of motivated employees
·         Minimizing the employee disputes.

·         Interruption to production process (strikes, industrial disputes)
·         Declining the employee productivity
·         Demoralizing of employees
·         Waste in resources
·         Lower the efficiency and the effectiveness of the total firm.


16.8 : Employee grievances
 Employee grievances are the mental discontent or dissatisfaction of an employee or a group of employees regarding the job or working environment.
 It can be either expressed or unexpressed (Said or unsaid). Grievances directly affect the employee performance. These hinder the achievement of organizational goals. Employee grievances are the early stage of industrial disputes. Therefore, the necessary steps should be taken to handle/manage the employee grievances at the early stages.
 Reasons for the employee grievances
 Following are some of the job related reasons.
1.      Assignment of the tasks and duties to the employee which are not related to his Job Description.
2.      Employing him of a job that mismatches his knowledge and skills.
3.      Reasons related to work condition
4.      Changing the work place or working hours.
5.      Having unhealthy or unsafe work environment at the workplace
 Reasons related to Human Resource Management Policies, procedures and strategies.
1.      Salary, wages and incentives
2.      provision of the promotion to someone else which had been entitled to a qualified employee. Policies and procedures related to promotions,
3.      demotions, transfers, termination from the job, etc…
4.      Unavailability of a formal promotion procedure.
Reasons related to violation of rules and regulations of the organization
1.      Taking tough or unreasonable disciplinary actions against violation of disciplines.
2.      Breach of the conditions in collective agreements by the management
 Reasons relating to unnecessary personal behavior
1.      Unattainable expectations or having non-realistic goals.
2.      Wrong attitudes regarding senior officers
3.      Employee over estimation regarding himself.
 Reasons beyond the job or work environment.
Reasons relating to family.
Reasons relating to other. competitive businesses.

Some of the benefits received by a business through handlingemployee grievances successfully.
1.      Decreasing of employee turnover
2.      Controlling of employee absenteeism
3.      Minimizing of Trade Union actions.
4.      Having industrial harmony by strengthening industrial relations.
5.      Increasing the goodwill of the business.

 Some negative effects faced by a business for not handling employee grievances properly.
1.      Increasing labor/employee turnover.
2.      Increasing the absenteeism of the employees.
3.      Industrial disputes due to weak industrial relations.
4.      Decreasing of employee productivity.
5.      High cost of hiring employees frequently to cover the job vacancies.
 Methods to identify the employee grievances.
·         Exit interviews.
·         Suggestion Box.
·         Attitude Survey.
The Strategies/Methods that can be used to handle/manage employee grievances.
1.      Formal grievance handling procedure.
2.      Through the immediate supervisor
3.      Having an Open-Door Policy
4.      Joint Committee Method
5.      Counselling
6.      Appointing an Ombudsman
7.      Arbitration
The steps of handling employee grievances.
1.      Listening about the grievance carefully.
2.      Collecting the accurate information of the grievance and the related employee.
3.      Discussing the relevant matters with the employee.
4.      Listening to the employee carefully
5.      Accepting the matters said by employee if they are true.
6.      Build trust in the employee.

16.9 the importance of Discipline Management
Discipline
The standard or employers’ expected behaviour from the employee to carry on a business organization formally and legally can be called as discipline. Or else the good behavior of the employee is called discipline.
Disciplinary management means the development, operating and maintenance of a disciplinary procedure is called as discipline management.
Some of anti-disciplinary actions or misconducts that can be frequently happen in a business organization.
1.      Willful damages to the organizational resources.
2.      Not reporting to the work without prior permission.
3.      Late attendance to the work.
4.      Leaving the work place without prior permission.
5.      Showing a fraudulent illness.
6.      Sleeping at work
7.      Negligence and less attention towards the job
8.      Disturbing the safety and health measures of the business.
9.      Taking liquor at the work place.
10.  Bribery and corruption.
11.  Insulting or threatening the employer or the colleges.
The Disciplinary Actions
·         Verbal warning.
·         Written warning.
·         Fines or recharging the loss.
·         Suspension from the job temporary.
·         Transferring from the job as a disciplinary action.
·         Holding of salary increment or making it delaying.
·         Demotion from the post.
·         Termination from the job.
The importance of Discipline Management Minimizing the disputes among colleagues
1.      Decreasing conflicts in between employer and employees
2.      Ability to manage the human resource of the business properly with maximum efficiency and effectiveness.
3.      To maintain employee behavior in accordance with the rules and regulations of the organization
4.      To create expected employee performance and to maintain it continuously.
16.10 The employee health and safety
The perfect mental and physical fitness of the employee to perform the tasks, duties and responsibilities of his job is called as health. Protecting the employees from all the hazaards causing the health of the employee is called safety.
Some of the factors and hazarrds affecting employee health and safety.
·         Job related accidents (Deafness, Weak eyesight, loss of the parts of the body, burnings, Electric shocks.etc.)
·         Job related deseases (Cancer, Breathing problems, Poisonning, etc.)
·         Organisational stress
The importance of employee health and safety
1.      Ability to irradicate or minimize vocational health and safety related issues.
2.      Ability to get rid of the legal compliences relating to employee health and safety.
3.      A healthy workforce contributes to increase the efficiency of the organisation.
4.      Increasing the image of the business.


the disadvantages of weak health and safety management, to the employer.
1.      Increasing the premium of health insurance scheme of the employees due to frequent payment of compensation by the insurance companies.
2.      Increasing of compansation payments.
3.      Increasing charges for legal requiremants.
4.      Dissatisfaction and unrest of the employees increases.
5.      Decreasing employee productivity.
6.      Decreasing quality of the employees.
7.      The damages to the tools icreases.
8.      Incresing the expences of medical charges.
9.      Damaging the goodwill of the business.
10.  Increasing the employee absenteesm and turnover.
Some of the  benefits of health and safety management to the organisation.
1.      Increasing the moral of employees.
2.      Minimizing the cost of expences relating to the legal requirements.
3.      Minimizing employee turnover.
4.      Increasing the productivity of the business.
5.      Developing a strong industrial relation.
6.      Organisations who purchase from other organisations give priority to those which engage in health and safety management.
16.11the Industrial Relations
Employer-Employee relationship/Industrial Relationship
Any type of professional relations between the two parties of employees and employers (good or bad) are known as industrial (labor) relations. There should be a strong employer and employee relation for the successful management of the human resource in any organization. It is very helpful for the employees to perform their job satisfactorily.
Thus a good industrial relation gives many benefits while weak industrial relation causes many problems.
 Employee
Any person who has come to an agreement to work under an employer in receiving some salary or wage any base or a contract is called an employee
 Employer
The person who engages some person or a group of persons on some salary or wage is called employer,
Advantageous/uses of a good labor relation
1.      Minimizing resource wastage
2.      Increasing labor productivity
3.      Minimizing employee turnover
4.      Minimizing employee absenteeism
5.      Having a motivated workforce
6.      Minimizing industrial disputes
7.      Consequences of bad labor relations
8.      Weakens the business process due to strikes, and labor crisis
9.      Declining the employee productivity
10.  Diminishing the morale of the employees
11.  Wasting of resources
12.  Dropping the efficiency and effectiveness of the entire firm
Employee rights
Rights of employees can be treated as entitlements and privileges received by the employees from service agreements, ordinances, acts etc., to perform their tasks properly
Examples for employee-rights
1.      To receiving salaries sufficient for the service and a sound work environment
2.      Getting leave entitlements
3.      Ensuring safety from work related health problems and accidents
4.      To establishment of trade unions
Few responsibilities and duties  of employees
Responsibilities
Duties
·         Working towards the achievement of organizational goals.
·         Behaving well at the work place
·         Performing the duties in accordance with the service agreement
·         Using organizational resources carefully

·         Performing employee duties properly
·         Working eagerly towards the development of the business
·         Not revealing business secrets to outsiders
·         Protecting the goodwill of the business and developing it.


Few rights of the employers
1.      Ability to function in accordance with the prevailing regulations
2.      Getting the work done in accordance with the service agreement
3.      Right of terminating employees when there is excess of employees or when the employees are not suitable for the business.
4.      Organizing as trade unions to protect themselves from the threatening situations of the industry.
Few responsibilities and duties of employers
Responsibilities
Duties
1.      Paying agreed salary
2.      Maintenance of a strong disciplinary procedure
3.      Maintenance of reasonable salary scales and a pleasant work environment
4.      Paying the salary on the given date or prior to that.

5.      Fulfilling employee responsibilities properly
6.      Assuring job security
7.      Creating a suitable work environment
8.      Listening to the employees’ reasonable requests and solving them.

Industrial disputes
Job-related disputes arisen between employers and employees are known as industrial disputes
 Reasons for the industrial disputes
·         Providing the job or not
·         Service conditions
·         Positions of the job
Some effects faced by the employer due to industrial dispute
1.      Inability to carry on business activities continuously
2.      Damaging the goodwill of the business
3.      Disturbing the industrial harmony
4.      Losing the market share
5.      Inability to compete with the competitors
6.      Financial loses and damages to the resources of the organization.
some negative consequences of the industrial disputes to the employee.
1.      Not receiving salary on time.
2.      Decreasing the living standard.
3.      The good relationship with the employer damages due to the breach of industrial harmony.
4.      Disturbing the future promotions, training, scholarships, etc.
 The negative consequences of industrial disputes to the customers.
1.      Increasing the price of the relevant product,
2.      Having a scarcity of that product in the market
3.      Inability to consume that product.
4.      Consumer has to consume low quality products.


Trade Union
An organization voluntarily established by the employers or employees of a particular industrial field in order to gain and protect their professional rights is known as a trade union However, in Sri Lanka, Employees’ Trade Union activities are concerned.
Few aims of a trade unions
1.      To gain a reasonable salary and a pleasant working environment
2.      To get the working hours reduced
3.      To get protection from job related accidents and health problems
4.      To participate in management decisions made in the firm
5.      To assure job security
6.      Getting education and training
7.      To gain relief for sick, retired or employees on strike
Some of the trade union actions
·         Collective bargaining
·         Work- to- rule
·         Go – slow
·         Working dressed with a black strips.
·         Abstain from working over time
·         Sit-ins
·         Boycott
·         Sabotage
·         Picketing
·         Fasting
·         Taking leaves collectively
·         Token Strike
·         Continuous strikes

 Collective bargaining
The negotiating process between the management and the trade union in order to achieve the aims of employees is called collective bargaining.
 work-to-rule
Following every single rule and regulation and doing a small quantity of work is known as work-to-rule. It is about performing the authorized duties only that have been assigned legally. This slows down work and adds costs to the firm. Here the employees do not attend the needed tasks of the firm excepting what he has been legally assigned.
Go – slow
 Go – slow occurs when workers deliberately work slowly. Even though the job is performed accurately, it takes a longer time. This results in slowing down of the business activities. The cost and the inefficiency of the business increases.
Working with a black strip
 Working with a black strip tied in the hand or head is another method of showing the protest.
Abstain from working overtime
Abstain from working overtime means workers refusing to work more than their normal working hours.
 Sit-ins
Sit-ins means employees do not allow to close the business premises and also they do not perform duties. Even though the employees are in the business premises they do not engage in any business activity.
 Boycott
Boycott means stoppage of work of both employees and machines to stop the business operational process.
 Sabotage
Sabotage means locking up of the machineries by the employees or removing a small part of the machines to avoid its functioning.
Picketing
Picketing is a protesting of the employees showing banners, posters, notices in free times like lunch break. Picketing is used to give some hint to the employer regarding a strike.
Fasting
 A fast happens when the employees protest in the public areas to win their demand without consuming any food or drink.
Token strike
 Being away from duties during a particular period such as a day or a half-day, after informing the management is considered as a token strike.
Strike
 Employees completely stop working due to failure of gaining their demands through negotiations or any other protesting campaigns is known as a continuous strike.
 The negative consequences of a strike to the employee
1.      Breaking down of the production process
2.      Decreasing the sales/ inability to supply the orders on time.
3.      Damaging the goodwill of the business.
4.      Weak cash flowing into the business and facing liquidity problems
5.      Decreasing the number of customers and also customers shift to the competitors.
6.      Losing the suppliers
7.      Decreasing the profit
8.      Decreasing of profitability due to employee unrest.
9.      Weak Industrial relation
10.  Increasing labor turnover.
11.  Losses due to the stoppage of machineries.
12.  Being degrade in the professional field.
13.  Decreasing the employee earnings or not receiving salary or other incentives
14.  Sometimes the employee has to face disciplinary actions.
Some of the negative consequences of strikes to the economy
·         Increasing social problems
·         It disturbs the of civil life of public
·         The scarcity of products in the market.
·         Increasing the prices of products
·         Decreasing the quality of products
some actions that can be taken by the employers to avoid Industrial Actions.
·         Lockout
·         Vacated of Post-VOP
·         Strike Replacement
·         Mutual Aid Pact
·         Shift of Production
Lockout
Employers can close the work place, temporary stop of work of employees, terminate some employees from the job, in order to obey them to the ideas of him. This is called as Lock out.
Vacated of post
The employer does not allow employees who engaged in strike, to come to work and he considers that they have already left the job. This is called vacated of post.
Strike replacement
Strike replacement means the duties of the employees in the strike are covered using the employees who are not representing the trade union.
Mutual aid pact
Mutual aid pact means obtaining the financial aid from the other organizations who engage in the same industry to cover the lost income in the strike period.
Shift of production
Shift of production means the shifting of production activities to the other branches which are not in strike or branches in any other country.

Collective Agreement
The agreed settlement between employers and employees in connection with a particular dispute is known as the collective agreement. This is an agreement which has been prepared to avoid Industrial Disputes and to safeguard the privileges, rights and responsibilities of employees and employers. This is a result of collective bargaining and once the agreement is published in the government gazette with the approval of Commissioner of Labor it becomes a legal document. Normally this agreement is valid for a period of 3 years.

Aims of a collective agreement
·         Safeguarding the privileges, rights and responsibilities of the employees and employers
·         Creating industrial harmony by preventing industrial disputes.
·         Obtaining more benefits than the ones which have been provided by industrial acts and ordinances.




Benefits of a collective agreement to the employer and employee
Employer
Employee
1.      Ability to solve industrial disputes easily.
2.      The survival of the business is ensured.
3.      Ability to understand the self-responsibility.
4.      Ability to manage the business without any difficulty.
5.      As industrial issues are solved in common there is no need of individualconcern over the employees.
6.      Ability to create a loyal and satisfied group of employees.

1.      Ensuring that the agreed privileges and benefits will be received.
2.      Protecting employee rights
3.      Ability to receive better benefits than the ones entitled by the industrial acts and ordinances.
4.      Ability to clearly understand the self -responsibility and rights.
5.      Ensuring the employees’ safet



16.12 the criteria of evaluating the efficiency of Human Resource Management
criteria that can be used to evaluate the success of Human Resource Management.
·         Labor Turnover
·         Employee Absenteeism
·         Labor Productivity
·         Industrial Relations

following criteria also used to evaluate the success of Human Resource Management in addition to the above methods.
·         Human Resource Accounting
·         The HR Scorecard Method
Labor Turnover: The rate at which employees leave the firm during a particular period is known as labor turnover/employee turnover.
 Labor turn over can be computed as follows.
Labor Turnover =          The no: of employees left during a period                   x 100
                                     Average no: of employees employed in that period

Employee absenteeism.
Employees getting absent from work or being present without performing their duties can be known as employee absenteeism.
Following situations can be considered as absenteeism.
1.      Non attendance at work
2.      Being present but not performing the duty.
3.      Taking more time as the interval.
4.      Late attendance to the work.
5.      Leaving the work place earlier.

Employee absenteeism = No: of work days lost to absenteeism    x 100
Total number of available work days

Absenteeism can be calculated as follows




Labor productivity
Labor productivity is the relationship between the employee inputs and the outputs. A higher level of employee productivity is important for the success of Human Resource Management.

Labor Productivity =    .    Output     .
                                      Labour output
 Labor productivity can be computed as follows

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