HUMAN

RESOURCE Unit 3

MANAGEMENT
STRATEGIC PAY PLANS
BASIC FACTORS
IN
DETERMINING EQUITY AND
PAY RATES ITS IMPACT
Direct ON PAY RATES
Financial
Payments
Employee
Employe
Compensation
e
Compensat
Indirect
ion
Financial
Payments
External
Equity
Procedural
Equity
Internal Equity Individual
Equity
 ADDRESSING EQUITY
ISSUES
Methods to Address Equity
Issues
Job Analysis and
Salary Surveys
Job Evaluation
Communications,
Performance Appraisal Grievance Mechanisms,
and Incentive Pay and Employees’
Participation
 EMPLOYEE BENEFITS
Traditional Benefits Non-Traditional Performance
Benefits Related Pay
Medical or Health Employee Assistance Individual Payment
Insurance Program
Life insurance Employee Stock Option Team or Group payment
Disability Insurance Flexible Work Options Financial Participation
Retirement Benefits Flextime Merit Pay
Leave – National holidays Golden Handshake or Bonus
Sick Leave Golden Parachute
Casual Leave
Maternity leave
Study Leave

Job Sharing
SALARY STRUCTURE
 COMPONENTS OF SALARY
Basic Pay ALLOWANCES DEDUCTIONS
Dearness Allowance (DA) Provident Fund
40 to 60 % of the CTC House Rent Allowance Employees State Insurance
(Cost to Company) Corporation
Vehicle Allowance Professional Tax
Conveyance Allowance Labour welfare Fund
Medical Allowance
Child Education Allowance
Special Allowance
Incentives or bonuses
Conveyance allowance
Leave Travel Allowance or
Concession (LTA / LTC)
Telephone / Mobile Phone
Allowance
 A SYSTEMATIC TECHNIQUE USED FOR DECIDING THE
RELATIVE WORTH OF A JOB BASED ON ITS COMPARISON
WITH OTHER JOBS
 METHODS OF JOB
EVALUATION
Qualitative Quantitative
Methods Methods
• Ranking or Job • Point Rating
Comparison • Factor
• Grading or Job Comparison
Classification
QUALITATIVE METHODS
• Jobs are paired and for each pair the most impactful job
Ranking is chosen. This results in a forced ranking of different
method/ Job jobs based on their seniority.
• This approach is only recommended for smaller
comparison organizations with fewer than 100 jobs
 Customer Service
Marketing Manager (1) Sales Executive (2)
Representative (3)
The Customer Service
The Sales Executive's main
The Marketing Manager is Representative handles
job is to convert leads
responsible for designing and customer inquiries, resolves
generated by marketing into
implementing marketing campaigns, complaints, and ensures
sales. This role involves
managing social media and digital customer satisfaction. This
reaching out to potential
advertising, and analyzing market role is essential for
Duties clients, conducting product
trends to position the company maintaining long-term
demonstrations, negotiating
effectively. This role is essential for relationships with clients and
deals, and closing sales. The
building the company’s brand, ensuring that existing
performance of this role
attracting new customers, and customers continue to use
directly impacts the
driving long-term business growth. the company’s software
company’s revenue.
services
Persuasion, relationship- Problem-solving, patience,
Strong communication, strategic
Skills Required building, product knowledge, communication, and conflict
thinking, and leadership skills
and negotiation skills. resolution skills.
The role has a direct impact on This role brings immediate The role contributes to
creating leads for the sales team, financial gains to the customer retention and
Impact enhancing the company’s company by generating improves customer
reputation, and ensuring a strong income from new clients and satisfaction, but it does not
market presence retaining existing ones. directly create new revenue

Indirectly contributes by
Contribution to Generates potential revenue by Directly generates revenue
retaining customers but does
Revenue attracting leads. by closing sales.
not bring new revenue.

Medium – Critical for

High – Essential for attracting new Low – Focuses on retaining
Priority for converting leads into sales
 • Jobs are grouped based on the similarities found in their
characteristics and values.
Job • Generally, jobs within each job group or class are eligible

Classification for the same pay scale or grade.

• An example classification is a CEO, vice president,
director, manager, and operator.
 QUANTITATIVE METHODS
• Jobs are broken down based on various

Point identifiable factors such as skill, effort, training,

knowledge, hazards, responsibility, etc.

Rating
• Thereafter, points are allocated to each of these
factors.

Factor • This method is a combination of both

Compariso ranking and point methods in the sense
that it rates jobs by comparing them

n and makes analysis by breaking jobs

into compensable factors.
EXAMPLE OF POINT RATING METHOD
EXAMPLE OF FACTOR COMPARISON
METHOD
INDUSTRIAL RELATION
 Industry
It is just not a small segment of
economic activity, but has
come to include all gainful
employments, including service
under the state.

Industrial Relation
Industrial relations refers to the relationship
between employers, employees, and the
government in relation to work conditions, rights,
and obligations. It encompasses systems to
resolve disputes and regulate interactions.
Understanding these concepts is fundamental to
analyzing the dynamics between different
stakeholders.
Actors of industrial relations: Management, Union
and Government
 Key Stakeholders

Stakeholder Role Interests

Employers Provide jobs Maintain profitability

Employees Work for wages Fair treatment and benefits

Unions Represent workers Advocate for rights

Government Regulate relations Ensure fair practices

Consumers Purchase goods/services Quality and price

 IMPORTANCE
•No or less industrial disputes (e.g. work stoppage
due to strike, lockout or closure)
•Increased productivity and efficiency
•Optimum resource utilization
•Highly motivated and engaged workforce
•Healthy industrial democracy, where employer,
employee, and government partner with each
other
•No unfair malpractices by either management or
union
•Enactment of labour laws dominant in the country
•Maintenance of work-life balance, health, and
safety of all employees https://www.youtube.com/watch?v=zCPgz1V_mCo
 APPROACHES OR
THEORETICAL
PERSPECTIVES TO
INDUSTRIAL RELATIONS
1) UNITARY APPROACH :

•The entire organization is viewed as a harmonious system,

where management, workers, and others work toward the
same organizational objectives and share same interests
(win-win situation)
•Mutual cooperation; individual treatment; teamwork and
shared goals.
•Two Perspectives:
1. The Industrial conflicts are abnormal and must be
suppressed by all means
2. Industrial conflicts are unavoidable but believes that
they ought to be controlled through diligent planning
and management.
2) PLURALISTIC APPROACH :

•Conflict is inevitable as individuals are with

different set of beliefs, attitudes, and
values. Conflict is beneficial if identified and
addressed early.
•Trade unions as legitimate representatives
of employee interests.
•Stability in IR as the product of concessions
and compromises between management
and unions.
•Unions balance the powers between
management and employees.
3) MARXIST/RADICAL APPROACH :

•Conflict between managers and workers is inevitable but is the product of the
CAPITALIST society.
•Industrial conflicts are the central reality of industrial relations, but open
conflicts are uncommon
•TU are seen as labor reaction to exploitation by capital, as well as a weapon to
bring about revolutionary social change
4) GANDHIAN/ TRUSTEESHIP APPROACH:

•Mahatma Gandhi proposed this approach.

•The utility of non-violence as a means of
conflict resolution in the organization.
•Basic elements: truth, non-violence, the
voluntary arbitration of disputes and want-
lessness.
•Like a trustee, an organization takes total
responsibility for serving the best interests
of shareholders, customers, employees, and
large society.
•More of an ideological underpinning and
difficult to implement in real life.
5) HUMAN RELATION APPROACH:
•Organizations are made up
of people and the success of
the management lies in its
dealings with these people
and their relationships to one
another.
•Aim of this approach is to
make policies and techniques
which can improve employee
motivation, morale,
efficiency and job
satisfaction.
6) GIRI APPROACH:
•Former president of India V. V. Giri.
•Focuses on the relevance and
importance of voluntary negotiations
between the employers and the
employees as a means of settling
disputes.
•Insists on the establishment of
bipartite forums at different levels of
industry to wipe out the dispute
between the employers and the
employees represented by their
 DUNLOP’S FRAMEWORK
OF IR
•The actors:
•The ideology:
1.Managers and their representatives. A set of shared beliefs, such as the actors' mutual
2.Workers and their organizations. acceptance of the legitimacy of other actors and
3.Specialized government agencies. their roles.

•The contexts: •The network or web of rules:

Outcomes include wages and benefits, rules about
1.The technological characteristics. work relations, employment security, productive
efficiency, industrial peace and conflict, and
2.Factor market and budgetary constraints.
industrial democracy.
3.Locus and distribution of power
TRADE UNION LEGISLATION
 Trade Union
• Any combination, whether temporary or
permanent, formed primarily for the
TRADE purpose of regulating the relations
between workmen and employers or
UNION between workmen and workmen or for
imposing restrictive conditions on the
ACT, conduct of any trade or business and
includes
Trade any federation of two or more
Dispute
1926 Trade Unions.
• Any dispute between employers and
workmen or between workmen and
workmen, or between employers and
employers which relates to the
employment or non-employment, or the
terms of employment or the conditions of
labor, of any person
 Historical Overview
Trade unions have evolved significantly over
the centuries. The first labor unions emerged
in the late 18th century during the Industrial
Revolution. Through the 19th century,
unions gained traction, advocating for better
working conditions. Major milestones
include the passing of labor laws in the early
20th century and significant strikes that
shaped labor rights. Today, unions continue
to play an important role in shaping labor
policies globally.

NEXT
 OBJECTIVES OF TRADE
UNION ACT
• To improve the economic lot of workers by securing them better wages.
• To secure for workers better working conditions.
• To secure bonuses for the workers from the profits of the enterprise/organization.
• To ensure stable employment for workers and resist the schemes of management that
reduce employment opportunities.
• To provide legal assistance to workers in connection with disputes regarding work and
payment of wages.
• To protect the jobs of labor against retrenchment and layoff etc.
• To ensure that workers get as per rules provident fund, pension and other benefits.
• To secure for the workers better safety and health welfare schemes.
• To secure workers participation in management.
• To inculcate discipline, self-respect and dignity among workers.
• To ensure opportunities for promotion and training.
• To secure organizational efficiency and high productivity.
• To generate a committed industrial work force for improving productivity of the system.
 Any seven or more members of a
trade union by subscribing their
names to the rules of the trade
union and by otherwise complying
with the provisions of the Act, may
apply for its registration
REGISTR
ATION No trade union of workmen will be
registered under the Act unless at
least 10% or 100 of the workmen,
whichever is less, engaged or
employed in the establishment or
industry with which it is connected,
are the members of such a trade
union on the date of making such
application for registration.
 Eligibility Criteria

Criteria Description Notes

Must have a minimum number of

Membership Size Varying requirements by region.
members, typically 20-30.

Must focus on workers' rights and Not for profit-making. Vastly

Purpose
interests. important.

Must have a defined constitution

Legal Structure Legally binding.
and organizational structure.

Must adhere to equality and anti- Diversity and inclusion are

Non-Discrimination
discrimination policies. mandated.

35
 APPLICATION FOR
REGISTRATION
Every application for registration is to be accompanied by a copy
of the rules of the trade union and a statement of the following
particulars:

In the case of trade union

The names, occupation of workmen, the names,
and addresses of the occupation and
members making the addresses of the place of
application work of the members
making the application

The titles,
The name of the trade names,ages,addresses
union and address of its and occupation of the
head office office-bearers of the
trade union.
On the application of trade union
If certificate has been obtained by fraud
or mistake
In absence of requited number of
members

CANCELLATION OF
REGISTRATION
COLLECTIVE
BARGAINING
 Collective bargaining is defined as a free and voluntary forum
that facilitates negotiation between employers and employees’
unions on issues affecting the interests and rights of both
parties so that an amicable settlement is reached in good faith.
TYPES OF BARGAINING
Distributi Integrativ
ve e
bargainin bargainin
g g
Composi Producti
te vity
bargainin bargainin
g g
 Distributive Bargaining Integrative Bargaining
• A bargaining process is • When there is a
described as distributive convergence of interests,
bargaining when the needs and goals among
parties to the bargaining the parties to the
process have conflicting bargaining, the bargaining
needs, interests and goals. process is usually
• In distributive bargaining, described as integrative
the employers and bargaining.
employees normally adopt • In this type of bargaining,
opposing positions. the employers and the
• one party’s gain is another employees have the same
party’s loss as their needs attitude towards the issues
are mutually exclusive. discussed in the bargaining
• Economic issues like wages and are equally concerned
revisions, benefits, about its outcome
bonuses, leaves and • Agreements regarding
 Composite Bargaining Productivity Bargaining
• Composite bargaining has • Productivity bargaining is
nothing to do when an employer agrees
with compensation. to offer employees
Instead, it focuses on additional bonuses or
other issues, such as improve their work
working conditions, job conditions in hopes that
security, and other this can increase
corporate policies. employee productivity.
• Employer well-being and • Labor union leaders often
job security are two of use higher salaries and
their most common compensation to boost
concerns. employee productivity,
• The goal is to build a which leads to higher
long-term connection profits and value for the
between the company employer.
•
 THE COLLECTIVE
BARGAINING PROCESS
 Sources of Grievances
Grievance • Discipline
• Any discontent or dissatisfaction,
whether expressed or not, whether • Seniority
valid or not, arising out of anything • Job evaluations
connected with a company that an
employee thinks, believes, or even • Work assignments
feels is unfair, unjust, or inequitable.
• Grievance means any real or
• Overtime
imagined feeling of personal • Vacations
injustice which an employee has,
concerning his employment • Incentive plans
relationship.
• Holiday pay
• Problem employees

GRIEVANCES
•Wages, incentives, work arrangements, complaints
about job satisfaction
•Rule interpretation, transfer, seniority promotion
•Working conditions, safety, welfare amenities
•Supervision, discipline, grievances against foremen,
interpersonal relationships and
•Contract Violation, unfair labor practices.

GRIEVANCES MAY FALL

UNDER THESE BROAD
CATEGORIES
 GRIEVANCE
PROCEDURE
•Present verbally in person to the officer designated by the management and must
be taken care of in 48 hours.
•If unsatisfied, he with the department representative goes to HOD who must settle
the case within 3 days. Record reasons for the delay.
•It is not satisfied by HOD and then goes to the grievance committee.
• The committee considers the matters and makes recommendations to the
manager within 7 days.
•Unanimous recommendations must be implemented by the management and the
aggrieved workman is entitled to know the decision through the personnel officer
within 3 days.
•If the employee is still dissatisfied, he has a right to appeal to the higher
management tier for revision and may union with him. The management must
inform within a week.
•If the workmen are still not satisfied, the union may ask for voluntary arbitration,
and in that case, the arbitrator’s decision is binding on both parties.
THANK YOU!