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Causes of Industrial Disputes

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Industry and industrial disputes are considered the two sides of the same coin. Disputes are very common in industries but their consequences are very big, an industrial dispute is not limited to an industry or a particular sector but it spread across the sector and creates social, economical, and political challenges. In this article, we will explain to you what are industrial disputes, their meaning, and definition, what are the causes of industrial disputes, and different methods to resolve industrial disputes.

► What are Industrial Disputes?

An industrial dispute is defined as the disagreement or conflict between an employer and employees regarding pay, unfair labor practices, recognition, other working conditions problems, etc.

Industrial disputes mainly arise due to strife between employees and employer and this strife become wider due to the diverse interest of both employee and employer. The employees are interested in higher wages, and good working conditions and want to right to express or have a voice in management whereas an employer is more interested in profits, productivity, quality, and control of cost this conflict of interest maximizes the possibility of industrial dispute.

Industrial Disputes Meaning

In simple words, industrial disputes mean a kind of difference or a conflict in opinion between employers and workers. This small difference of opinion or dispute may result in lockouts, strikes, bandhs, retracements, and layoffs which directly affect production, profit, loss of market share, or sometimes it led to the closure of the plant.

Definition of Industrial Disputes

As per the Industrial Dispute Act, of 1947. Section 2 (K) “Industrial Disputes mean
any dispute or 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 with the conditions of labor of any
person”.

► Causes of Industrial Disputes

The common causes of industrial disputes are –

  • Wages
  • Dearness Allowance and bonus
  • Working condition
  • Retrenchment and layoff
  • Inter union rivalry
  • Violation of rules or codes
  • Political interference
  • Unfair labor practice
  • An authoritarian or autocratic attitude in management

All the above causes of industrial dispute are explained in detail one by one.

Wages

The most important cause of industrial disputes is wages. There is always a conflict exists between management and employees related to determining employee wages.

Inflation and increasing cost of living results in demand for high wages which is responsible for the industrial dispute.

Dearness Allowance and Bonus

Employees always want allowances, incentives, and bonus so they can satisfy their financial and non-financial needs but high allowances and bonus create an extra burden on company revenue so the company does not want to pay higher allowances and bonus which result in the never-ending conflict between the organization and employers.

Working Condition

Industrial disputes in India have also resulted from the demand for improved working conditions such as leave, lesser hours of work, better working conditions like better safety measures, canteen facilities, etc.

Retrenchment and Layoff

Another important cause of industrial disputes is regular layoff and retrenchment.

A layoff is defined as a temporary termination of an employee from his job

Interunion Rivalry

Trade Unions are inspired by different political ideologies. In some cases a political party shows its consent to management decisions or policy, on the other hand, some trade unions have discontent related to management decisions which creates never-ending disputes.

Violation of rules or codes

One of the important factors that cause industrial disputes is the violation of rules and codes by both management and workers.

If businesses want to operate peacefully then they should follow the rules and regulations in letter and spirit.

Political interference

All the trade unions have an affiliation or support with respective political parties. This nexus between the trade union and political parties, make the industry a playground for showcasing their money and muscle power which affects the smooth functioning of the organization’s operation.

Unfair labor practices

Many times management uses dilatory tactics or discriminates against workers to suppress or exploit those who are members of the trade union or who participate in the activities of the trade union.

The organization uses unfair labor practices such as pressure on employees when they try to exercise their rights to organize, take part in union activity, refusing to bargain, recruiting new employees during a strike which is not illegal, creating an environment or actually creating an act of force or violence or stop communication, etc.

Recognization dispute

Recognition Disputes arise when the management of an organization unwillingly to
recognize a trade union for the purpose of collective bargaining or to represent its
member employees in case of a conflict or dispute.

Management generally does not want to talk to the trade union over any industrial disputes with representatives of the trade union therefore management deliberately refuses to accept that trade union for the purpose of negotiations or bargaining.

The authoritarian or autocratic attitude of management

The authoritarian attitude of management is considered a root cause of industrial disputes. Management has complete control over regulation or decision-making and undermines the authority of trade unions.

The management uses excessive power to gain absolute control over workers which curbs the rights of workers, and their autonomy, workers do not have any say in decision making and the worker feels they are treated as a salve.

Also Read : What is Industrialization?

► Methods for the settlement of Industrial Disputes

The various methods available for resolving industrial disputes are-

  • Collective bargaining
  • Grievance procedure
  • Arbitration
  • Conciliation

What is Industrial Relation?

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Industrial relation is the relationship between employer and employees that is considered of core importance for a business’s success and operation. Here in this article, we have shared what is industrial relation and their importance.

The term industrial relations in HRM deal with effectively and successfully managing the relationship between employers and employees in the industry.

Generally, in industrial relations, two parties employees and management are involved in the process of establishing cordial relations. However, the role of government is to facilitate, regulate and maintain industrial relations.

After reading this article, we will provide you with a complete overview about; What is industrial relations in HRM, what is Its meaning, what Different definitions of Industrial relations are given by different authors, what Objective of industrial relation, Scope of industrial relations, Importance of industrial relations, Approaches of industrial relations and the factors of industrial relations?

► What is Industrial Relation in HRM?

The term industrial relations may be defined as the relationship between employees and management which comes directly or indirectly from the union-employer relationship.

This relation determines the working condition of employment, protection of interest of both employer and employees, financial and social benefits, and day-to-day working of an organization.

Industrial relations refer to the result of the employment relationship between employers and employees.

Meaning of Industrial Relation

Industrial relations term concerned with the relations or interactions of labor and management during the period of employment which directly and indirectly emerge from the management-workers relationship.

As a result of composite attitudes and approaches of industrial relations which help in effective and successful management of the business, financial, and social affairs of the industry, for the betterment of not only the management and the workers but also of the industry and the economy as a whole.

Definition of Industrial Relation

“Industrial relations as “the complex interrelations among managers, workers, and agencies of the governments”. – J.T. Dunlop 

“industrial relations is the process of management dealing with one or more unions with a view to negotiate and subsequently administer collective bargaining agreement or labor contract”. – Dale Yoder

The HR Employee Relations Manager directs the organization’s employee relations function. They develop employee relations policies and ensure consistent application of company policies and procedures.

In addition, they are responsible for employee dispute resolution procedures, performing internal audits, and taking appropriate action to correct any employee relations issues

We can have three parties or participants or actors in an industrial unit:

  1. The workers and their unions,
  2. Employees and their associations, and
  3. Government.

► Objectives of Industrial Relation

Industrial relations play a significant role in the smooth functioning of industrial operations so it becomes very crucial to understand the objectives of industrial relations.

The main objectives of industrial relations are as given below-

  • To protect the interest of all participants of the industrial unit i.e employees, labor management, and trade unions.
  • To secure the highest level of mutual understanding and trust among different stakeholders in the industry.
  • To avoid industrial conflict and develop harmonious relations.
  • To increase the productivity of workers and management.
  • To reduce high turnover and frequency absenteeism.
  • To promote industrial democracy.
  • To reduce or eliminate strikes, lockouts, and gheraos in the organization.
  • To provide reasonable and fair wages, and improved living and working conditions to employees.
  • To improve the economic and social conditions of workers in the existing state of industrial management and political government.

► Importance of Industrial Relation

  • It ensures the protection of all the parties that are part of Industrial activities.
  • It promotes cordial relations and interaction with all the stakeholders of the industry i.e supervisors, workers’ trade unions, management, trade union leaders, and employers’ associations.
  • It plays a key role in the promotion of industrial democracy and propounds the basic constitutional values that are enshrined in the Indian constitution.
  • It also provides room for government intervention to influence industrial relations situations through its activities as a facilitator, guide, and counselor for both parties in the industry.
  • It acknowledges the role of trade unions to regulate and promote the perception, and attitudes of workers towards management.
  • It ensures an effective human resource planning system through its fair and transparent policies which help in the identification and selection of the right kind of candidate.
  • It promotes two-way communication which is important for the establishment of a healthy work culture environment in the organization.
  • It also provides many methods and technics to settle workers’ grievances and disputes through bilateral negotiation.
  •  It always emphasizes mutual talk, sharing responsibility, collaboration, partnership dealing, and mutual trust.
  • In the process changes in workers’ attitudes, behavior and thought patterns are likely to occur which affect industrial relations.
  • It is also crucial for increasing production both in terms of quantity and quality and reducing wastage, accident rate, productivity, labor turnover rate, and absenteeism rate.
  • It uplifts the company’s corporate image which directly reflects in the growth and development of the industry.

► Approaches of Industrial Relation

The important approaches to industrial relations are as follows-

  1. Unitary Approach
  2. Pluralistic Approach
  3. Marxist Approach
  4. Systems Approach
  5. Gandhian Approach
  6. Human Relations Approach
  7. Action Theory Approach
  8. Social Action Approach

► Scope of Industrial Relations

Industrial relations have a very high significance in HRM and the scope of industrial relations are as given below.

  • Employees and Employer Rights Protection
  • Handling Grievance
  • Mental Revolution
  • Contract Interpretation
  • Boosting Morale
  • Collective Bargaining or negotiation
  • Increasing Productivity

Employees and Employer Rights Protection

Industrial relations through various acts, regulations, and associations provide many safeguards which ensure justice and protect the rights and interests of both employees and employers.

Handling Grievance

One of the aims of Industrial relations is to maintain a friendly and trustworthy relationship between the management and the employees by setting up a method to resolve the grievances of both parties.

Mental Revolution

It means transforming or changing the way in which both the management and the workers think or perceived things.

Contract Interpretation

Industrial relations emphasizes providing proper training to the supervisors and managers on labor law contracts to clarify any misunderstanding.

Boosting Morale

Industrial relations always focus on building employees’ confidence and boosting their morale so that they can perform better than before.

Collective Bargaining or Negotiation

The worker’s representative or trade union leaders and the management communicate openly and freely with each other and put up their proposals in front of each other and try to negotiate over the same to reach a consumer which is fruitful for both parties.

Increasing Productivity

Industrial relations have great scope in improving the efficiency and productivity of the organization by ensuring long-term and cordial relationships between employees and employers.

► Factors Affecting Industrial Relation

The various factors that affect the relationship between the management and the employees in an organization are as follows:

  • Individual Behavior
  • Psychological Factors
  • Organizational Structure
  • Leadership Style
  • Economic Factors
  • Technical Factors
  • Legal Factors
  • Political Factors

✔ Individual Behavior

An industry consists of different types of people and every person has his or her own perception, skills, knowledge, expertise, experience, strengths, and weakness which directly influences industrial relationships.

✔ Psychological Factors

These factors are one of the most valuable factors that influence industrial relations. The kind of attitude, morale, interest, motivation, and mentality of workers towards the employer and their task evoke positive or negative feelings and emotions.

✔ Organizational Structure

It includes the degree of centralization and decentralization, organization hierarchy, the flow of information, span to control, work culture, etc. are very detrimental to establishing a sound industrial relationship.

✔ Leadership Style

The kind of relationship that exists between employees and the employer is determined by the leadership traits and leadership styles adopted by the manager.

✔ Economic Factors

Economic factors like demand and supply, investment, liberalization, privatization and globalization, ease of doing business, demographic dividend, unemployment, etc play a vital role in deciding the industrial relation.

✔ Technical Factors

These include the type of technology used, degree of automation, mechanization, and computerization, frequent innovation, and adaptation of technology affect the level of industrial relations.

✔ Legal Factors

These include all the legal frameworks or acts or rules that regulate work duration, working conditions, wages, insurance, social security and trade unions, etc.

✔ Political Factors

Political factors influence industrial relations in many ways. It determines the government system, political ideologies, organizational structure, etc.

What is Organizational Change?

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Organizational Change Management is the organized, systematic application of knowledge, tools, and resources of change that provide organizations with a key process to achieve their business strategy.

Change is considered an inevitable process. Change is a response to any dynamic external and internal force that change current realities.

When change occurs in any part of the organization it disturbs the old equilibrium and a modification or transformation is required to establish a new equilibrium. The type of new equilibrium depends on the extent of change and its effect on the organization.

In this article, you get a complete overview of the following things

  • What is organizational change, and what meaning and various definitions are given by different authors
  • Nature of organizational change,
  • Importance of organizational change,
  • Factors that led to organizational change, and at last
  • The process of organizational

► What is Organisational Change?

Organizational change is defined as the process of alteration of organizational structure and the implementation of new procedures and organizational structure which help an organization to adapt to the changing nature of its business environment and grab new business opportunities.

Meaning of Organisational Change

Organization change is a term formed by the combination of two words Organisation and change. Change word means refers to any alteration and Organization word means when a group of people work together in an organized way for a shared objective or goal.

In simple words, an organizational change is defined as the change in attitude, behavior, and interest of employees, rules regulations, policies, and technological and environmental changes of an organization so that organization aligns with the forces affecting the organization.

Definition of Organisational Change

“Organisational change is an ongoing process of social construction that comprises spiral patterns of discursive change and restructuring of collective meanings.”- Francis and Sinclair
“Organisational change was expressed as an empirical observation of difference in form, quality, or state over time in an organizational entity. The entity may be a person’s job, a workgroup, an organizational strategy, a product, a program, or the overall organization” – Van de Ven and Poole

► Nature of Organizational Change

1) Organization change is a continuous process.
2) Change is any part or element of the organization that affects the whole organization. Some elements of the organization may be affected more, others less if any change takes place.
3) The aim of organizational change is to modify or transform the organization which affects the status quo.
4) Change is inevitable.
5) Organization change affects individual behavior, group behavior, and management behavior.
6) Change supports the organization’s survival.

► Importance of Organizational Change

  • It encourages innovation and technological growth.
  • If any changes occur in the organization then to cope with change employees learn new skills.
  • It provides new growth opportunities to employees.
  • It reduces future risk and uncertainty.
  • Changes make organizations more effective and efficient.
  • Continuous and valuable changes in organizational elements provide a competitive advantage.

► Types of Organizational Change

There are five types of organizational change-

  1. Organizational wide change
  2. Transformational change
  3. Unplanned change
  4. Remedial change
  5. Personnel change

✔ 1. Organization-Wide Change

Organization-wide change is considered a is a large-scale change or transformation that affects the overall structure of the company. In this change, the resizing of the organization, and restructuring of the organization is done.

✔ 2. Transformational Change

Transformational change is very important for organizations because organizations are constantly under the threat from many factors. A company must know all the changing business environment factors around them like cultural trends, understanding the social climate, and technological advances.

Transformational change deals with the formulation and implementation of new strategies so that organizations can successfully address the rapid changes that take place in a business environment.

✔ 3. Personnel Change

Personnel change implies that the company undergoes mass hiring or layoffs or changes in the organization’s human resource structure. These types of changes take place when organization there is any change in technology or the organization incurs losses. This type of change brings fresh talent to the organization and lay off the less productive employees.

These types of changes bring a crucial effect on the employee engagement and retention strategy of the organization and give new kinds of exposure to businesses to catch emerging opportunities.

✔ 4. Unplanned Change

Generally, an organization can undergo a number of unplanned changes. they occur randomly and spontaneously without having the time to react. These types of changes are introduced by an organization in response to a change in the demographic composition or performance gap of an organization.

Many times sudden changes in government regulation and global economic conditions also force companies to go for a sudden and unplanned change.

✔ 5. Remedial Change

The remedial changes are brought about when corrective action is required. The organization generally used remedial change when performance levels of the organization dropped or when suffering from financial crises.

These remedial changes are the reactionary or corrective actions taken by the organization’s management. The main objective of the remedial change is to respond to the issue that creates hurdles in organizational functioning.

Also Read : What is Organizational Behaviour?

► Factors Cause Organizational Change

Organizational change is caused by two types of forces.
Some of these are external forces that arise outside the organization and some are internal forces that arise from sources within the organization.
  1. Internal Factors
  2. External Factors
The various factors that lead to organizational change are as follows-

1. Internal Factors in Organizational Change

  • Changes in managerial personnel
  • Work condition
  • Delegation of power and authority
  • Employee motivation
  • Workplace culture and environment
  • Policies and procedures established by the organization
  • Employee expectation

2. External Factors

  • Globalization
  • Technological change
  • Economical change
  • Social and political change
  • Workforce diversity
  • Demographic dividend

Process of Organisational Change

The process of organizational change has the following steps-

  • Identifying the need for change
  • Determining the organization elements to be changed
  • Planning for effective change
  • Assessing the change force
  • Actions for change i.e Unfreezing, Changing and Refreezing

 Kurt Lewin’s Process of Organization Change

Kurt Lewin has a three-phase process:-

✔ 1. Unfreezing

It is the first phase of the process of unfreezing an individual should unlearn all the old things so that it becomes easy to learn new things.

✔ 2. Changing

In the second phase of the process, the organization implements the change.

✔ 3. Refreezing

This is the last phase of Kurt Lewin’s organizational change process in this phase organization tries to stabilize the implemented change.

What is Group Dynamics?

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Group dynamics is the study of groups and is also a general term for group processes. Today in this article we have shared about Group Dynamics and its importance in an organization.

After reading this article, you will definitely learn about

  • What are group dynamics and their meaning
  • Various definitions by given by different authors.
  • Importance of group dynamics
  • Stages of group dynamics
  • Types of group
  • Principle of group dynamics

► What is Group Dynamics?

Group dynamics is concerned with the formation and structure of groups and the way they affect individual members, other groups, and the organization.

Group dynamics is the study of the force of interaction between group members. It involves the analysis of factors that are responsible for the creation and functioning of the group.

✔ Meaning of Group Dynamics

  • Group dynamics is made up of two words, Group and Dynamics whereas
  • The word Group means a collection of two or more individuals
  • The word Dynamics comes from a Greek word mean­ing force.

Therefore group dynamics in basic language refers to the study of forces operating within a group.

✔ Definition of Group Dynamics

“Group dynamic refers to changes that may occur in any part of the group and bring out actions and reactions in the group structure that affects group members” – Kurt Lewin

► Stages of Group Development

The group development has the following five stages –

  1. Forming
  2. Storming
  3. Norming
  4. Performing
  5. Adjourning

✔ 1. Forming

This is the first stage of group forming. In this stage, members get to know each other and have excitement, nervousness, and anxiety.

This stage group required strong direction and guidance.

✔ 2. Storming

This is the second stage of a group called storming. In this stage, members engage in conflict and power struggles.

✔ 3. Norming

This is the third stage of the group called norms. In this stage member show cooperation, unity and integration.

✔ 4. Performing

This is the fourth stage of group performance. This stage is characterized by overall synergy, focus on the goal,  high productivity, and efficient performance.

✔ 5. Adjourning

This is the last stage of group adjourning. In this stage, groups adjourn only upon the completion of the task or the achievement of the goal.

Also Read : What are Smart Goals?

► Importance of Group Dynamics

  • Group dynamism helps in bringing changes to the ideas, attitudes, and perceptions of individuals therefore organizations easily bring a positive change in individual thinking.
  • Group cohesion and cooperation can result in higher productivity and faster completion of tasks.
  • Moreover, a group will not be able to function to its fullest without the coordination and belongingness that the members feel.
  • It promotes the feeling of belongingness among the group members.
  • It ensures a low turnover of employees because they have an emotional attachment to the group.
  • Group dynamism help in increasing the motivation level of the employees.
  • Group performance always outperforms individual performance.
  • The group provides a huge opportunity for learning because a group is consist of members who are masters in different skills that help in increasing the skill inventory of the other.

► Types of Group

Group is divided into two categories which are further divided into subcategories.

  1. Formal Group
  2. Informal Group

✔ 1. Formal Group Dynamics

    • Command Group
    • Task Group

◉ Command Group

Command groups are formed by organizations which proper structure, rules, and norms and often consist of a supervisor and the subordinates that report to that supervisor.

◉ Task Group

Task groups are also commonly referred to as task forces. They consist of people who work together to achieve a common task. Members are brought together to accomplish goals within a specified time period.

✔ 2. Informal Group Dynamics

    • Interest Group
    • Friendship Group

◉ Interest Group

Members of interest groups may not be part of the same organizational department but they are bound together by some other common interest.

◉ Friendship Group

Friendship groups are formed by members who have similar attributes. and they love to enjoy each other’s company. Group members have similar social activities, political beliefs, religious values, or other common bonds.

► Principles of Group Dynamics

  • The Principle of Belongingness
  • The Principle of Conformity
  • The Principle of Perception
  • The Principle of Change
  • The Principle of Power
  • The Principle of a common goal
  • The principle of motivation

Principle of Belongingness

As per the principle of belongingness essential for the group members to have a strong sense of togetherness.

The feeling of belongingness helps the group members individually and collectively perform their best which helps boost the group morale. Therefore, his principle of belongingness is considered an important principle of group dynamics.

 Principle of Perception

This principle of perception is very useful for an organization, it helps in creating a common understanding among the group member regarding any changes adopted by the organization.

Principle of Conformity

The principle of conformity states that confirmation or approval from all the group members group is a general group norm.

It ensures coordination, a common direction, and the successful completion of the objectives.

Principle of Change

The principle of change is one of the basic but foremost important principles of group dynamics. This principle means that every decision in a group is bound to change at a specific point in time. Change in a group is inevitable and proper change can which is achieved through proper communication and coordination among the group members.

Principle of Common Motives

The principle of common motive means that the group members have a common motive which is the reason behind the creation of groups. If the group members have a common motive it increases the surety of the successful attainment of the pre-determined goals.

Goal Orientation

Every group is created with the aim to achieve the goal with the help of their common motive. The primary principle of the group is that they are goal-oriented and focus all their activities toward the successful completion of the task.

Principle of Power

The principle of power implies that group members should have status or power within the group so that they influence each other.

Continuous Process Principle

As the name suggests the principle of the continuous process means group functioning is a continuous process. This principle states that every group member is responsible for the continuous functioning of group tasks and functioning.

Scope of Organisational Behavior

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With the help of this article, you will in detail get an overview of what is organizational behavior, its meaning, and definition, the elements of OB, and the scope of Organisational Behavior.

► What is Organisational Behaviour?

Organizational behavior is the academic study of what people do in an organization and how their behavior affects the organization’s performance.

One of the most simple yet profound definitions of organizational behavior is given below

Organizational behavior is defined as the study of the behavior of humans in the workplace and the interaction between people and organizations.

✔ Meaning of Organisational Behavior

In simple words, Organization behavior is defined as the study of the behavior of people or groups when they interact with the organization, to know what attributes bring changes in the behavior of people and organizations.

✔ Definition of Organisational Behavior

In simple words, we may be defined as the organization behavior studies how can the interaction between employee – organization and employee coworkers is governed or regulated in such a way that employee behavior is conducive to the survival and effectiveness of the organization.

“Organizational behavior is directly concerned with the understanding, prediction, and control of human behavior in an organization.”- Fred Luthan

The five key elements in the study of organizational behavior are –

  1. People
  2. Structure
  3. Technology
  4. Environment
  5. Social system

► Scope of Organisational Behavior

The scope of organizational behavior is broadly divided into three dimensions.

  •  Individual behavior
  •  Inter-individual behavior
  •  Organizational behavior

✔ Individual Behavior

Organizational behavior has a great scope in studying individual behavior. We can study an individual behavior from the personality, values, learning, attitude, motivation, interests, and attitude.

✔ Inter-individual Behavior

The scope of organizational behavior is very wide in the study of Inter-individual behavior, we can use the study of organizational behavior in the following ways

  • analyze the relationship of an individual with superiors, subordinates, and social groups.
  • To understand the group dynamics or group behavior
  • To understand the leadership style
  • To understand the level and channel of communication
  • To understand the structure of team and group

✔ Organizational Behavior

Understanding organizational behavior is very significant for improving an organization’s effectiveness and efficiency. OB knowledge help in the following ways.

  • help in understanding and formulation of Organization structure
  • Understanding of cultural and environmental factors
  •  Understanding and formulation  of job design

Also Read : What is Organizational Change?

► Forces Affecting Organisational Behavior

The factor affecting the organization’s behavior is classified into two categories-

  1.  Internal Factor
  2. External Factor

✔ External Factors

  • The level of automation and technology
  • Marketing condition
  • Social change
  • Political and legal change

✔ Internal Factors

  • Conflict among the coworker and employee or management.
  • Demographic organization workforce.
  • Abilities and skills of employees.
  • Perception of individuals regarding the organization, superiors, coworkers, and juniors.
  • Attitude and belief of an individual.

What is Quality Circle in HRM?

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The Quality Circle plays a key role in determining the organization’s productivity and establishment of a well-structured organization. The success of any organization depends on its organizational structure and functional rapport among different elements.

The term ‘Quality Circle’ implies a small group formed with employees on a voluntary basis working in the same department, whose main task is to identify the problems or errors, discuss them & analyze them and suggest solutions to the higher authority or management.

Here we have shared the detailed article on the Quality circle and its meaning with steps in the process, objectives, and importance in HRM (Human Resource Management).

► What is Quality Circle in HRM?

A quality circle is defined as a volunteer group composed of workers, and supervisor, who identify, analyze and solve work-related problems and provide their solutions to management so that organization performance improve and employees feel more motivated towards their work.

Quality circle in HRM consists of small teams of usually 6 to 12 employees who voluntary voluntarily join the circle form and solve a quality or performance-related problem.

In simple words, the quality circle defines some sort of voluntary and formal group which solves problems in the workplace and provides a suggestion to produce higher quality goods and deliver a high level of customer satisfaction.

◉ Quality Control Circle Meaning

  • A quality circle simply means a small group of people engaged in similar work who meet voluntarily on regular basis under the leadership of their supervisors.
  • To identify and discuss their work problems, analyze the causes thereof and recommend the solutions to superiors, and implement the solutions themselves.

A Quality Control department is a group of five to ten employees that meets regularly to solve problems affecting its work unit. This group carries on continuous activities for the improvement of quality within the workplace.

Generally, there are several qualities, and circles in an organization. They take over the responsibility for solving quality problems. They generate and evaluate their own feedback. But management typically retains control over the final decision regarding the implementation of recommended solutions

Definition of Quality Circle

“A Quality Circle is a volunteer group composed of members who meet to talk about workplace and service improvements and make presentations to their management with their ideas.” – L.M. Prasad

“A quality circle is a group of employees usually from seven to ten from the same unit who voluntarily meet together regularly, usually for one hour a week to identify, analyze and make recommendations about quality problems and other production problems in their area.” – Wendell L. French
“Quality circle is defined as a small group of employees doing similar or related work who meet regularly to identify, analyze, and solve product quality and production problems and to improve general operations. The circle is a relatively autonomous unit (ideally about ten workers), usually led by a supervisor or a senior worker and organized as a work unit”. Joel E. Ross and William C. Ross
QC is considered formal and voluntary groups or autonomous units. This circle is responsible for problem identification, information gathering and analysis, basic statistics, and solution generation.
The members of the quality control circle meet regularly and are trained by competent persons like senior managers or industrial relations specialists.

► Concept of Quality Control

The concept of the Quality circle emerged from quality control. This concept is very popular in Japan. QC endeavors to produce high-quality products. Looking at their success, now the U.S.A., & India have also attempted to implement quality circles.

  • The practice of Quality Circles originated in Japan after the second world war.
  • Quality circles are considered an integral part of enterprise management. It is also known as quality control circles.
  • This technique boosted the not only production of Japanese firms but also ensure high-quality products at low costs.
  • A Quality Control Circle is a group of five to twelve employees that meets regularly.

It is a voluntary, formal, and autonomous grouping that focuses on solving problems that affect its work unit. This group continuously endeavors to improve quality and standards within the workplace.

These quality circle groups take up responsibility for solving quality problems and they provide suggestions and recommendations to management. But management has total control over the final decision of whether to implement of recommendation or not.

► Objectives of Quality Circle in HRM

  • To ensure employee and organization development.
  • To improve communication and flow of information between management and employees.
  • To encourage the employees to express their views, and opinions and share experiences.
  • To improve job satisfaction which reduces absenteeism and grievances.
  • To promote peace, harmony, and team building and encourage employee participation as well as promotes teamwork
  • To promote the participation of employees in decision-making and develop a positive attitude
  • To improve quality standards and design of products and services
  • To improve productivity  and reduction of waste, scraps Reduction of cost
  • To promote safety and reduce workplace hazards.
  • To promote organization competence, solving skills, and reduce error.
  • To overcome the communication barriers and promote a sense of belongingness.
  • To contribute towards the improvement and development of the organization or a department.

  • To bring positivity to workplace culture and promote a sense of involvement in the decision-making processes.

  • To promote an opportunity to attain knowledge and self-development.

  • To reduce cost and redundant efforts in the long run.

► Process of Quality Circle

Here are the steps involved in the process of creating a Circle of Quality Control.

  1. Create awareness about QC
  2. Provide Initial training
  3. Constitution of QC
  4. Initial Problem Solving
  5. Presentation and Approval of Suggestions
  6. Implementation of suggestion

► Importance of Quality Control Circle

  • It ensures harmony and high performance.
  • It helps in improving occupational safety and health standards.
  • It helps in improving product design, quality, and manufacturing processes.
  • It helps in making the workplace culture and works environment.
  • It plays a crucial role in enhancing the quality of output or services in order to improve the performance of the both organization and the department.
  • It helps in motivating and enriching the employee’s performance.
  • It helps in reducing the wastage of raw material and wear or tear of the machine.
  • It ensures improvement, control, and adaptation in organizing different activities.

Related Topics:

What is Quality of Work Life?

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Work-life balance describes the when, where and how individuals work, leading them to be able to enjoy an optimal quality of life. Here we have discussed what is Quality of Work Life in HRM, Its meaning and various definitions given by different experts, Its factors, Its impact, and different ways to increase the work-life balance.

Work is considered an integral part of our everyday life. We spend around half of our day daily in the workplace, it does influence the overall quality of our life.

If an employee is happy with work-life it yields job satisfaction, gives peace of mind, and fulfillment of having done a task, as it is expected, without any flaw, and having spent the time fruitfully, constructively, and purposefully.

Even if it is a small step towards our lifetime goal, at the end of the day it gives satisfaction and eagerness to look forward to the next day.

Work-life balance is achieved when an individual’s right to a fulfilled life inside and outside paid work is accepted and respected as the norm, for the mutual benefit of the individual, business, and society.

► What is the Quality of Work Life in HRM?

The term Quality of Work Life in HRM means an attempt to change the entire organizational climate so that employees get a better opportunity to grow and develop which can benefit the company in terms of productivity, employee loyalty, and company reputation.

QWL is very beneficial to provide a more humanized and employee-centric work environment and also considers the socio-psychological needs of the employees.

It endeavors to serve different types of employee needs that help them to enhance work-life quality.

It seeks to outline many things like improving and imparting new skills to employees, should not put employees under undue stress, should not damage or degrading employee freedom and dignity in the workplace.

◉ Quality of Work-Life Meaning

Quality of work life is described as a concept that decides the favorableness or unfavorableness of the job environment of an organization for its employees.

In simple words, this term covers an employer’s feelings through various dimensions of his work e.g. economic incentives and rewards, job security, organization structure, working conditions, organizational and interpersonal relationships, etc.

Quality of Work Life is considered as a degree to which employees of an organization are able to satisfy their personal needs through experience in the organization. It main aim is to create a work environment where employees work in cooperation with each other and contribute to organizational objectives

Definition of Work-Life Balance

“Quality of Work Life is the degree to which work in an organization contributes to the material and psychological well-being of its members.” – Harrison

“Quality of Work Life is a process of joint decision making, collaborations and building mutual respect between management and employees.” – D.S.Cohan

“Quality of Work Life is a process of work organization which enables its members at all levels to participate actively and effectively in shaping the organizations’ environment, methods, and outcomes. It is a value-based process which is aimed towards meeting the twin goals of enhanced effectiveness of the organization and improved quality of life at work for the employees”. – American Society of Training and Development

► Importance of Quality of Work Life

  • Decrease absenteeism and employee turnover in an organization
  • Ensure less number of accidents or employee injury
  • Improved management and employee relationship
  • Enhance the company’s corporate image and reputation
  • Positive employee attitudes toward their work and the company
  • Increased productivity and motivation of employee
  • Enhanced organizational effectiveness and provide a competitive advantage to the organization
  • Promote a sense of belongingness among employees toward the organization.

► Factors Affecting the Quality of Work Life

The factors that influence and decide the Quality of work life are:

  • Individual Attitude
  • Work Culture and Working Environment
  • Opportunities
  • Nature of Job
  • People
  • Reward and Recognition
  • Career Prospects

Individual Attitude – It includes a commitment to work, enthusiasm, eagerness to learn, innovation, competitiveness, team spirit,  interpersonal skills, leadership quality, etc.

Work culture and working environment – It include organization structure, working style, organization policies, leadership style, employee behavior, workplace amenities, employee interpersonal behavior, communication style, etc.

Opportunities – These include opportunities for promotion, participation in decision making

Nature of Job – It includes complexity of task, basic or routine task, role, and responsibility, job title, designation, deadline, work pressure, stress, etc.

People – It includes colleagues, bosses, superiors, juniors, team members, etc.

Reward and Recognition – It includes incentives, fringe benefits, perks and remuneration, profit-sharing programs, remuneration, new job title, formal and informal acknowledgment of employees, etc.

Career Prospects – It includes employee career planning and development, and opportunities to increase career.

► Positive Impact of Good quality Work Life

Positive Impact and Advantages of Good quality Work Life on employees.

  • Enhance job satisfaction
  • Positive attitude and optimistic
  • Increase motivation level
  • Ensure peace and tranquility
  • Promote happy personal and work-life balance
  • High employee loyalty
  • No stress
  • High creativity and innovation
  • Good physical and mental health

► Negative Impact of Poor Quality Work Life

Negative Impact and disadvantages of QWL on employees.

  • Develop negative attitude
  • Feel demotivated and have a low commitment to the job
  • Negative attitude and pessimistic
  • Low job satisfaction
  • High employee turnover
  • Low work productivity
  • High level of stress and anxiety
  • Poor physical and mental health
  • Addicted to drugs

► Ways to increase the Quality of Work Life

Ensuring a positive and high quality of work life is the priority of both organizations and individuals. There are some widely accepted and renowned techniques  used to improve the QWL as given below:

  • Flexible Work Schedules
  • Job Redesign
  • Compensation, Recognization, and Reward
  • Opportunity for Development
  • Autonomous Work Groups
  • Employee Participation in management
  • Job and Social Security
  • Equitable and Fast Delivery of Justice
  • Recognition of Work-life Issues
  • Provide Training as per Requirement

Flexible Work Schedules

Today’s workforce does not want to work for fixed hours or days. Employees demand alternative work schedules flexi-time, staggered hours, compressed work weeks, work from home, etc. The flexibility in their work schedule so that professional and personal life can be managed together.

Job Redesign

One of the best ways to ensure good quality of work life is job redesigning or job enrichment or job enlargement.

All these techniques will end boredom and monotony in the work routine and provide exciting, interesting, stimulating, and challenging work. It helps to satisfy the higher-level needs of the employees.

Compensation, Recognization, and Reward

For providing good quality of work life it is the duty of the organization to reward the employees for their exceptional efforts. There should be just an equitable balance between the effort and the reward.

If an organization reward or recognize an employee for work it should not only motivate that employee but also motivate other employees to push harder themselves if they want to reward and recognization.

Opportunity for Development

Career development and growth is very important for ambitious and achievement-oriented employees. If an organization provide ample opportunities to employees for their advancement and growth, that makes employee highly motivated and their commitment toward task and the organization will increase sharply.

Autonomous Work Groups

Autonomous work groups are self-managed work teams that not only have freedom of decision-making but are also responsible for their success or failures.

Currently, organizations adopt delegation as an essential constituent of organization structure which promotes freedom ensuring, open communication, respect and recognition, trust, etc.

Employee’s Participation in management

Participation of employees in decision-making helps employees improve the Quality of Work Life. Organizations should adopt methods like Quality circles, Management by objectives, and suggestion system to ensure the participation of employees in management and also promote and maintain a work environment that results in excellence in results.

Job and Social Security

Every employee wants stability of employment. If organizations provide job security and all social security measures that will definitely improve the Quality of Work Life to a large extent because now employees have a sense of relief that employee

Equitable and Fast Delivery of Justice

One of the key and deciding approaches to ensure good work-life quality is equitable and timely delivery of justice.

Organization management ensures the implementation of equitable administrative justice in all disciplinary actions, grievance redressal procedures, performance appraisal, transfers, work assignments, etc.

Recognition of Work-Life issues

Organizations should address employees’ issues related to work-life by framing their employees-centric policies and procedure.

The higher management of organizations like the Board of members and board of directors should take Suo moto cognizance of employees regarding why employees are not happy, do they need training, why employee morale is poor, and numerous other issues.

Provide Training as per Requirement

One of the ways to enhance work-life quality and minimize job dissatisfaction is to provide regular training to the employee so that they feel more engaged toward work and minimize the incidence of error and accident which enhance employee confidence.

Related HR Topics

Difference between Training and Development

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Training and development are considered a very crucial part of Human Resources Management. When an employee joins the organization it becomes necessary to impart new knowledge-specific skills, and abilities, to the employee. Many people interpret or interchange the word training and development but both the term have individual meanings.

Training and development are not only limited to workers but it was also given to executives, supervisors, and managers so that they can perform their duties in an effective and efficient way.

After reading this article you will get complete knowledge about

  • what is training and development in HRM
  • What is the meaning of training in HRM
  • What is the meaning of training in HRM
  • What is the difference between Training and development

► What is Training and Development in HRM?

Employee training and development have paramount importance in the organization. it is considered an indispensable function of human resource management. Both activities aimed at improving the performance and productivity of the employees.

Training and development in consider an attempt to the improve performance of the employee. It increases the employee’s ability to perform by imparting new knowledge and skill and changing the behavior and attitude.

it is used as an educational tool. During the training and development program, new instruction and information are given to employees that increase their existing skills which results in an increase in the productivity and efficiency of both individuals and organizations.

Training and development are not only limited to the growth of workers but also provide a competitive advantage to the firm. It ensures the success of the firm because removing the performance deficiency of individuals reduces the wastage of resource and accident, meets the future need of employees, and motivate the employee to easily cope with the change.

Training Meaning in HRM

In simple words, training is defined as the process of imparting technical skills to employees who have required to do specific tasks. Training has a narrow perspective.

The training program is organized by the organization after an assessment of the training needs of workers. It helps to develop knowledge and skills in the employees as per the requirement of the job.

Development Meaning in HRM

Development is defined as the learning opportunities offered to employees that help them grow their potential. The development program is organized by firms that conclude a set of activity in which they help the employees to learn and grows.

Development means the overall growth of employees. It considers the long-term investment in human resources.

► Difference Between Training and Development

BASIS FOR COMPARISONTRAININGDEVELOPMENT
1. DefinitionTraining is defined as a learning process in which new skills and knowledge are imparted to the employees as per the job requirement.Development is considered an educational process that is concerned with the growth of employees in all aspects.
2. TermTraining is a Short term processDevelopment is a Long term process
3. Focus onTraining Program focuses on Present needs and challengesDevelopment program focuses on Future needs and challenges
4. OrientationTraining is job oriented programDevelopment is a career-oriented program.
5. ScopeTraining has a narrow scopeDevelopment has a wide scope.
6. ObjectiveThe objective of Training is to improve the work performances of the employees.The objective of the Development program is to prepare employees for future challenges.
7. Time periodThe duration of Training lasts for a few days or weeks.Development is a Continuous process.
8. AimImpart specific job-related skills.The overall growth of employees.

 

Also Read : What is Induction Program?

What is Job Evaluation in HRM?

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Job evaluation is one of the most basic and perhaps very significant functions of Human resource management. Like any other organization, each organization consists of a number of jobs, and all jobs are important for an organization, but all are not equally important. Therefore, the relative worth of each job is more than other jobs.

Job evaluation is a systematic and well-organized process that helps in determining the value/worth of a job with other jobs in an organization.

After reading this article you get complete information about-

  1. What is JE in HRM
  2. Meaning and Definition of Job Evaluation
  3. Process of J. Evoluation
  4. Objectives of J. Evaluation
  5. Advantage of J. Evaluation.
  6. Methods of J. Evaluation.

► What is Job Evaluation in HRM?

Job Evaluation is defined as a process of evaluating and assessing one job in relation to another job in the organization. The relative worth of various jobs is determined by the organization so that they can establish a satisfactory wage system that will depend on the worth of the job.

Every organization consists of many jobs but few jobs have more importance than others jobs in terms of relative worth. The main purpose of job evaluation is to rate the job rather than rate the employee’s performance.

Meaning of Job Evaluation

Job evaluation is a process that is concerned with determining the relative worth of each job in relation to other jobs in an organization. It is intended to provide a rational, orderly hierarchy of jobs based on their worth to the company by analyzing the difficulty of the work performed and the importance of the work to the organization. The factors used to assess a job’s worth are identified, defined, and weighted in the company’s job evaluation plan.

Management uses the job evaluation method to achieve equity in pay and formulate a formal wage and salary program that is accepted by all employees and compensates all employee effort and hard work they put into their service.

Definition of Job Evaluation

According to the International Labour Organization (ILO),

“Job Evaluation is an attempt to determine and compare the demands which the normal performance of a particular job makes on normal workers, without taking into account the individual abilities or performance of the workers concerned”

Job Evaluation can be defined as “a systematic and orderly process of determining the worth of a job in relation to other jobs”. – Edwin B.Flippo

Also Read : What is Job Satisfaction?

► Process of Job Evaluation

The Job evaluation program is a process involving a few steps.
  1. Gaining acceptance
  2. Create a J. Evaluation Committee
  3. Finding the jobs to be evaluated
  4. Analyzing the job and preparing a job description
  5. Selecting the method of J. Evaluation
  6. Classifying jobs
  7. Assigning wages and salary
  8. Review and feedback

These all steps are described in detail one by one below.

Gaining acceptance

This is the first perhaps most important step of the job evaluation process, before starting the evaluation, the top management of the organization must explain all aims, objectives, and uses of the evaluation program to employees and unions so that they feel confident and corporate with the organization.

Creating a J. Evaluation Committee

A committee is created for the purpose of job evaluation which consists of experienced executives and employees, job experts, trade union representatives, and HR experts.

Finding the jobs to be evaluated

It is very important to select or identify a job sample of benchmark jobs that represent the type of work performed in the job and compare it with jobs.

Selecting a job becomes crucial because every job in an organization is not evaluated.

Analyzing and preparing a job description and Job specification

Job analysis becomes very crucial because it provides information related to job duties, responsibilities, reporting relationships, working conditions, special skills, and knowledge of job demand and supervisory responsibilities.

Job analysis help in preparing the job description and job specification.

Selecting the method of evaluation

The foremost important step is to select the method of evaluating the jobs, while selecting the job evaluation method organization should keep all job factors and organizational objectives in mind.

Classifying jobs

The relative worth of different jobs is evaluated by finding which job is important using criteria such as skill and techniques requirements, experience needed, type of responsibilities to be shouldered, degree of dependence on another job, degree of supervision needed, the amount of stress caused by the job, etc. and different weightage can be assigned to each such factor.

Assigning salary and wages

After finding the relative worth of each job it is time to assign the monetary value of each job.

Review periodically

The business environment is very dynamic so changes are inevitable in an employee job role. Jobs need to be examined closely and their pay has been determined based on their role, responsibility, and workload.

Also Read : What is Job Analysis?

► Objectives of Job Evaluation

  • To compare the duties, responsibilities, and required technical or conceptual skills of a job with other jobs.
  • To collect the data or information for the preparation of job descriptions and job specifications of various jobs.
  • To minimize wage discrimination based on sex, age, caste, and religion.
  • To determine the proper hierarchy of jobs in the organization structure.
  • To rank the various jobs according to their relative worth.
  • It simplifies the wage structure.
  • To improve employee-management relations.

► Importance of Job Evaluation

  • It helps in standardizing and fixation of salary and wage.
  • It provides a basis for grading and the pay structure of the organization.
  • It helps in reducing the inequalities in the wage structure.
  • It resolves all kinds of controversies related to salary and wages.
  • It helps in recruiting and selection.
  • It helps in wage in salary negotiation.
  • It increases employee job satisfaction because of fair and transparent wage norms.
  • It enhances the company’s brand image and the organization earns a lot of goodwill.

► Techniques and Methods of Job Evaluation

Job Evaluation helps in determining the relative worth of each job so that salary differentials can be established.

Jobs Evaluation methods are divided into two categories-

1. Analytical Methods

  • Point ranking method
  • Factor comparison method

2. Non-analytical Methods

  • Ranking methods
  • Job grading method

What is Induction Program?

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An induction program is one of the important functions of human resource management. Indiction a newcomer is introduced to his or her job so that the employee feels comfortable and or easily gets settled in the new working environment.

An induction is designed in such a way that helps a new employee to socialize with the organization, function comfortably, and be stress-free.

In this article, we discuss in detail what is an induction program, its meaning, definition, element, and importance of induction for employers and employees.

► What is Induction Program?

The induction program is a well-planned process designed for welcoming newly recruited employees into the organization. Induction help new employees in supporting and adjusting to their new roles and working environment.

An effective induction program should not only apply to new employees but also to employees moving from one job to another within the organization.

Meaning of Induction Program

  • The term induction is derived from the Latin term “inducere” which in Latin means “to bring” or ” to introduce”
  • An induction program is created for new employees so they can easily fit into a new environment and have a better understanding of their roles and responsibility, company policies, and business.

Definition of the Induction

Induction is defined as a process that takes place on the day when new employees join the organization. A new joinee or employee is introduced to, the company’s mission, vision, values, policies, norms, company history, organization hierarchy, clients and partners, dress code, etc.

Also Read : Steps in Planning Process 

► Elements included in an induction program

The important elements include in an induction are as follows:

  • A formal greeting of new employees by a designated person.
  • Information is given related to employee company history, mission, vision, company structure, products, services, etc.
  • Also provides information related to job-related roles and responsibilities.
  • Include information related to the main terms and conditions of employment.
  • Information-related training and development opportunities, performance appraisal.
  • The information provides workplace safety and health.
  • Benefits and facilities provided by an organization to its employee.
  • Include a tour of the offices and workplace.

► Importance of induction for employer

  • It brings a positive workplace culture as new employee easily and comfortably integrates into an organization.
  • It ensures higher operational efficiency and productivity of employee which reduce resource wastage and help minimize cost.
  • It increases employee retention which reduces the cost of recruitment and selection.
  • Through induction employees get complete knowledge about company policies and procedures and employee compliance with those policies and rules.
  • It enhances the company’s image or reputation by creating a professional impression.
  • It helps new employees to understand their roles and responsibility.
  • It helps new hires to settle easily in the organization.
  • A better understanding of organizational policies and produce helps in reducing the grievances between employers and employees.
  • through the help of induction, program employee knows their superior and coworker which increase effective communication and eliminate the chances of conflicts.
  • Employees get complete knowledge about products and services so it made easier for him or them to do work effectively and commit fewer mistakes.