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What is the Importance of Directing Functions?
Learn and Study, What is the Importance of Directing Functions?

Directing is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Importance of Directing Functions with studying Definition of Directing! Directing is said to be the heart of management process. Planning, organizing, staffing have got no importance if direction function does not take place. Directing initiates action and it is from here actual work starts. The direction is said to be consisting of human factors. Also learned, Principles of Directing, What is the Importance of Directing Functions?

In simple words, it can be described as providing guidance to workers is doing work. In the field of management, the direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. According to Human, “Directing consists of process or technique by which instruction can be issued and operations can be carried out as originally planned” Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people towards the accomplishment of organizational goals.

Directing means giving instructions, guiding, counseling, motivating and leading the staff in an organization in doing work to achieve Organisational goals. Directing is a key managerial function to be performed by the manager along with planning, organizing, staffing and controlling. From top executive to supervisor performs the function of directing and it takes place accordingly wherever superior-subordinate relations exist. Directing is a continuous process initiated at the top level and flows to the bottom through organizational hierarchy.

It is that part of the managerial function which actuates the organizational methods to work efficiently for the achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing, and staffing are the mere preparations for doing the work. The direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating subordinate for the achievement of organizational goals.

Definitions:

“Directing concerns the total manner in which a manager influences the action of subordinates. It is the final action of manager in getting others to act after all preparations have been completed.” Massie

“Directing is the interpersonal aspect of managing by which subordinates are led to understand and contribute effectively and efficiently to the attainment of enterprise’s objectives.” Koontz and O’Donnel

“Directing is the guidance, the inspiration, the leadership of those men and women that constitute the real core of the responsibilities of management.”

Urwick and Breach “Telling people what to do and seeing that they do it to the best of their ability. It includes making the assignment, explaining procedures, seeing that mistakes are corrected, providing on the job instruction, and of course, issuing order.” Earnest Dale

“The heart of administration is the directing function which involves determining the course, giving order and instructions, providing the dynamic leadership.”

Marshall E. Dimock “Directing consists of the process and techniques utilizing in issuing instructions and making certain that operations are carried out as originally planned.”

Haimann remarks from the above definitions, we can conclude that the directing function of management is the heart of management process as it is concerned with initiating action. It consists of all those activities which are concerned with influencing, guiding or supervising the subordinates in their job.

The direction has following elements:

• Supervision

• Motivation

• Leadership

• Communication

(i) Supervision– implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers.

(ii) Motivation– means inspiring, stimulating or encouraging the subordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.

(iii) Leadership– may be defined as a process by which manager guides and influences the work of subordinates in the desired direction.

(iv) Communications– is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.

Importance of Directing Function:

Directing or Direction function is said to be the heart of management process and therefore, is the central point around which accomplishment of goals take place. A few philosophers call Direction as “Life spark of an enterprise”. It is also called as on actuating the function of management because it is through direction that the operation of an enterprise actually starts. Being the central character of enterprise, it provides many benefits to a concern which are as follows:-
1. It Initiates Actions – Directions is the function which is the starting point of the work performance of subordinates. It is from this function the action takes place, subordinates understand their jobs and do according to the instructions laid. Whatever are plans laid, can be implemented only once the actual work starts? It is there that direction becomes beneficial.
2. It Ingrates Efforts – Through direction, the superiors are able to guide, inspire and instruct the subordinates to work. For this, efforts of every individual towards the accomplishment of goals are required. It is through direction the efforts of every department can be related and integrated with others. This can be done through persuasive leadership and effective communication. Integration of efforts brings effectiveness and stability in a concern.
3. Means of Motivation – Direction function helps in achievement of goals. A manager makes use of the element of motivation here to improve the performances of subordinates. This can be done by providing incentives or compensation, whether monetary or non – monetary, which serves as a “Morale booster” to the subordinates Motivation is also helpful for the subordinates to give the best of their abilities which ultimately helps in growth.
4. It Provides Stability – Stability and balance in concern become very important for long-term sun survival in the market. This can be brought upon by the managers with the help of four tools or elements of direction function – judicious blend of persuasive leadership, effective communication, strict supervision and efficient motivation. Stability is very important since that is an index of growth of an enterprise. Therefore a manager can use all the four traits in him so that performance standards can be maintained.
5. Coping up with the changes – It is a human behavior that human beings show resistance to change. Adaptability to changing environment helps in sustaining planned growth and becoming a market leader. It is directing function which is of use to meet with changes in the environment, both internal as external. Effective communication helps in coming up with the changes. It is the role of manager here to communicate the nature and contents of changes very clearly to the subordinates. This helps in clarifications, easy adaptions and smooth running of an enterprise. For example, if a concern shifts from handlooms to power looms, an important change in technique of production takes place. The resulting factors are less of manpower and more of machinery. This can be resisted by the subordinates. The manager here can explain that the change was for the benefit of the subordinates. Through more mechanization, production increases and thereby the profits. Indirectly, the subordinates are benefited out of that in form of higher remuneration.
6. Efficient Utilization of Resources – Direction finance helps in clarifying the role of every subordinate towards his work. The resources can be utilized properly only when less of wastages, duplication of efforts, overlapping of performances, etc. doesn’t take place. Through direction, the role of subordinates become clear as manager makes use of his supervisory, the guidance, the instructions and motivation skill to inspire the subordinates. This helps in the maximum possible utilization of resources of men, machine, materials and money which helps in reducing costs and increasing profits.
From the above discussion, one can justify that direction, surely, is the heart of management process. Heart plays an important role in a human body as it serves the function of pumping blood to all parts of the body which makes the parts function. In a similar manner, direction helps the subordinates to perform in best of their abilities and that too in a healthy environment. The manager makes use of the four elements of direction here so that work can be accomplished in a proper and right manner. According to Earnest Dale, “Directing is what has to be done and in what manner through dictating the procedures and policies for accomplishing performance standards”. Therefore, it is rightly said that direction is the essence of the management process.
May 21, 2018
The Strategic Human Resource Management Model!

Learn and Study, the Strategic Human Resource Management Model!

There are several components that makeup SHRM. Each of these blocks has underlying values and assumptions that, in principle, have already been described. What is the Strategic Human Resource Management Model? PDF, PDF Reader, and Free Download. However, there are also contentious debates on whether there is any well-grounded model on strategic human resource management based on a specific discipline. The major differences are areas of emphasis between business strategies as determinants of human resource strategies and hence aiming at ‘strategic fit’ on one side or a universal approach to making human resource functions responsive to strategic business requirements. Also learned, Guide to Theories in HRM! The Strategic Human Resource Management Model!

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The ‘universal approach’ or people as the resource for gaining a competitive advantage are based on the ‘resource-based theory’. This lack of clarity has led to a model that tries to capture important attributes of strategic human resource management model as depicted in Figure 1. The figure displays ten main tenets of strategic human resource management which characterize the philosophical nature of strategic people management and what managers and employees ought to put in place and do in order to excel in a competitive business environment. The description for each tenet is provided below.

Figure 1 Strategic human resource management model:

#Making strategic value choices:

Although the model suggests ten strategic variables of human resource management that have to be embodied in systems, practices, and competencies in order to guide employees as individuals and teams to higher level performance, managers have to focus on the most valuable aspects, depending on the organizational strategy. For example, an organization that emphasizes creativity and innovation will choose and reward employee behavior that demonstrates risk-taking initiatives. That is to say, each of the nine constituents of the model will have different aspects to deal with but managers will have to make decisions and choose systems, processes, programmes or activities with the most strategic value for the individuals, teams, and the organization.

#Strategic integration:

Since HRM is related to other organizational strategies, integration is not only desirable but also necessary to ensure that human resource management decisions are not made for their own sake. HRM policies and procedures need to be linked with an organization‘s strategy, its objectives, and its activities so that performance can be judged in terms of the degree of strategic fit between business strategies and human resource strategies. Also Free Download PDF File: The Strategic Human Resource Management Model!

#Employees as most valuable:

No organization can excel without having the right human resources. Experience suggests that human resources are a key factor in attaining a competitive advantage. It needs to be developed through nurturing, coaching, training, respect and love, care, and encouragement, which are key components of motivation packages. The degree to which the emphasis on staff development of both current and future performance requirements is taken into account depends on the position of the organization in its life cycle.

The premise that human resources are the most valuable of all resources also presupposes that human resource functions cannot be left to personnel departments alone. There is need to place this function to all functional departments with the human resource manager remaining a team leader. Optimal utilization of this asset requires that there should be a deployment of right numbers and skills at the right place at the right time. The old tradition where departmental managers struggled to build their own empires by recruiting and retaining staff no longer holds sway in strategic human resource management.

#Emphasis on management of support staff:

Along the same logic of valuing human resources, managers are challenged to support staff through various techniques so that the latter can have a sense of belonging, enjoyment from the job, gain confidence in the management, identify with the organization and feel that they own it. Informal interactions, open door policy, coaching and mentoring, attractive employee welfare schemes are some of the techniques used to support staff and make them feel proud of their work and the organization.

#Strengthening management and employee’s commitment:

Commitment at all levels of the organizational structure depends on the perceptions and attitudes of both the management and employees towards each other. Negative perceptions and attitudes are the sources of low morale and lack of interest in both the job and the organization. For example, if employees feel that management ignores them when the former attempts to exercise their rights, the level of commitment would be low. Similarly, if the management feels that the workers are lazy and too demanding, they are likely to lose commitment in supporting such staff. However, since in principle, strategic human resource management should be the responsibility of top management, any sign of low employee commitment is the result of poor handling of human resource management issues at the top management level.

Employee commitment can be secured through various techniques. Some are ritualized including organizational songs, slogans, attire or informal gatherings such as cocktail parties etc. Employee involvement in the affairs of the organization through the contribution of ideas, motivation through encouragement, recognition of the individual as well as group efforts in accomplishing tasks by rewarding appropriately make a difference in inducing commitment from staff.

#Effective communication:

Effective communication occurs when a message is received and understood in the same way as the sender intended it. It involves the careful organization of ideas, assessment of the right mode of transmission and the nature of the receiver. Studies have shown that most problems experienced in people management are due to poor communication. Strategic human resource management appreciates the role of communication as a critical tool in day-to-day human resource management. Open channels of communication that build trust and mutual understanding, helping employees to internalize the organization’s vision, mission statement, core values, policies, objectives, and activities are essential.

Frequent meetings with the top management, departmental and team meetings present the best opportunities for effective communication. Other channels include close interaction between staff and supervisors, billboards, brochures and instruction manuals. Informal communication is very useful in disseminating information if the danger of rumors and gossip is to be contained.

#Decentralisation for empowerment:

Strategic human resource management calls for a decentralization of decision making and problem-solving at the lowest levels possible in the organizational hierarchy. That is, allow decisions to be made at the very source of activity. Operational staff and teams are the public faces of the organization. Therefore they need power, authority, and motivation to take the right decisions at that level. Organisations with a human resource management culture cannot afford to embarrass themselves in front of a valued customer by failing to conclude business deals simply because a particular manager has to make a minor, unnecessary routine decision.

#Flexibility and adaptation:

The nature of today’s business’ success lies in the ability to promptly respond to the unpredictable and fast-changing environment. Flexible but robust rules and regulations, flatter organization structures, preference for a multi-skilled workforce, and use of convertible production technologies are some of the strategies used to improve an organization’s ability to cope with environmental pressure.

#Creativity and innovation:

SHRM calls for the management and employees to work together and come up with new ideas that can be put into practice so that new business opportunities can be created. With regards to employees’ management, creativity and innovation are required in areas such as pay schemes that are internally fair and externally competitive, job enrichment, enlargement, leadership, team building, retraining, and better employment arrangements.

#Obsession with quality:

In the language of total quality management, the customer is always right and quality is seen in the eyes of customers. In order to produce the best quality goods and provide the best quality services as perceived by the customer when compared to other producers or suppliers, the organization need staff orientated towards, and a motivation for excellence in quality products and services. Careful recruitment and selection of staff, appropriate training and development programmes, use of quality circles, and performance management systems that reward employees according to contribution are some of the strategies used to build and sustain a culture of quality.

The oval-shaped pictorial view of the model and the interaction between variables emphasize the fluidity, complexity and dynamic nature of the SHRM model. For example, effective communication will have a symbiotic multiplier effect on decentralization, employee commitment, creativity, integration etc. To use the language of cybernetics, the ‘whole’ is greater than the ‘sum’ of the variables. At the center of the model, we have organizational ability to implement each of the requisite strategies. This puts emphasis on the ‘doing’ rather than the ‘talking’ and therefore, it might be better to have a strategy of limited quality which is well implemented as opposed to having an excellent one which is almost impossible to implement.

May 20, 2018
How to Integrating Business Strategy with Human Resource Strategy?
Learn and Study, How to Integrating Business Strategy with Human Resource Strategy?

Strategy – is a plan or pattern that integrates an organization‘s major goals, policies, and action into a cohesive whole. Integrating Business Strategy with HR Strategy! PDF, PDF Reader, and Free Download. By drawing from strategic management literature, Bhatia (2007) looks at strategy in terms of a statement of the direction in which an organization wants to go and what it wants to become. Also Learned, Why Change to HRM? How to Integrating Business Strategy with Human Resource Strategy?

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However, human resources must shape this direction. Therefore, as organizations become strategic, the same strategic decisions on managing people become necessary. Strategic decisions are decisions that determine the overall direction of the organization. Fombrun et al. (1984) regard strategy as a process through which the basic mission and objectives of the organization are set, and the process through which the organization uses its resources to achieve its objectives. Other scholars relate the strategy to a competitive advantage.

For example, Miller (1989) defines strategy as encompassing those decisions and actions that concern the management of employees at all levels in the business and that are directed towards creating and sustaining a competitive advantage. Human strategies like production, financial, marketing and others should be integrated with business strategy in order to establish operational linkages. Although strategic integration between business strategy and human resource strategy is desirable, it has not been an easy task.

Indeed, American and British firms have experienced disjointed and at many times side-lined human resource strategies in the overall organizational management process. In assessing the utility of strategic fit to the performance of the organisation and the overall improvement of human resource management functions, Green et al. (2006) concludes that the organisations that vertically aligns and horizontally integrates human resource functions and practices, perform better and produce more committed and satisfied staff that is the case with the organisations which do the opposite. Vertical alignment refers to the alignment of human resource practices to the organizational context in order to support specific organizational objectives.

Characteristics of vertical alignment include:
- The top management incorporating human resource plans, requirements and activities during the establishment of the organization’s direction,
- Top level managers being trained to integrate all levels of the organization’s management hierarchy and functional departments into the organizational decision-making process and
- The human resource department is fully integrated into the strategic planning process.
Horizontal integration is the degree to which specific human resource practices are orchestrated in a coherent and consistent manner to support one another in the best way possible and to integrate with other departments.

The following are the characteristics of horizontal integration.
- The human resource department works hard to maintain the corporate partnership with individual managers,
- The human resource department regularly checks with other departments to identify organizational training needs and
- The human resource department supports departmental managers in carrying out critical human resource management functions as part of their core functions and activities.
Therefore, the corporate strategy should set the agenda for human resource strategy in the following key areas:

#Mission:

This concerns setting the future of the organization. What will the organization be like, serving which purposes and to what extent? This will provide some indicators on the quantity and quality of staff that will be required to effectively transform the functioning of the organization to that level. This will form the basis of the human resource mission.

#Organisational culture:

Organisational culture could mean different things to different people because it depends on individual interpretation. We do not see the world around us in the same way and hence our interpretations of reality are different. An organization’s culture develops itself over a long time. Handy (1993) describes an organization culture as deep-seated beliefs, values, norms, attitudes about the way work should be organized, the authority exercised, people be managed, the degree of informalisation, obedience by subordinates, punctuality, adherence to rules and regulations etc. This framework is useful guidance in the process of developing human resource policies, regulations, and procedures in order to avoid possible contradictions between the established organizational culture and people management at lower levels.

#Human resourcing:

The process of human resource acquisition will depend on business strategy. For example, if new production lines are to be installed in three years’ time, there is no doubt that new skills will be required. Plans have to be made including training and recruitment so that there is the qualified staff of the right size to manage the new production line. The same will apply to service provision whether in the private or public sector organizations.

#Commitment:

As we noted in the first chapter, commitment to the organization cannot start at the bottom of the ladder. Employees have to see, feel, and believe that the top management is committed to making the organization the best place for them to work. Business strategies have to indicate that top management commitment in order to create enabling environment for human resource management strategies. Also Free Download PDF File: How to Integrating Business Strategy with Human Resource Strategy?

#Productivity:

Productivity is an indicator of how best resources are utilized in the organization. Business strategy has to set out performance targets, standards, and measurements. This will form the basis for developing strategies for acquiring the right skills, numbers and performance management as well as reward systems.

#Employee relations:

The relationship between the employee and the management as well as the relationships between employees themselves also depends on business strategy. For example, if a business’s future is not promising, it will certainly affect working relationships. Strategies have to be developed in order to avoid grievance and disputes that could become very costly to the organization. Such strategies could include work-sharing arrangements, introducing work shifts, voluntary retirement, part-time job arrangements and similar action.
May 20, 2018
Explain the Process of Job Analysis!

Learn and Study, Explain the Process of Job Analysis!

Job Analysis is a systematic process of gathering complete information about the job duties and responsibilities required to perform a specific job. The job analysis is concerned only with the job and not with the job holders, but however, the information about the job is gathered from the incumbents. Where to place the employees in order to best utilize their skills and talent? How to determine the need for new employees in the organization? How to eliminate unneeded jobs? How to set realistic performance measurement standards? How to identify the jobs and prepare a plan to fill them? Also learn, Methods, Purpose, Explain the Process of Job Analysis!

Well, all this can be effectively done by a proper and thorough job analysis. Managers deal such kinds of challenges in day-to-day company operations where they need to fulfill effectively and efficiently fulfill the organization’s requirements related to human resource recruitment, selection, performance, satisfaction and cutting down and adding extra responsibilities and duties. And there is no scope where they can avert the risk of being wrong.

An effective and right process of analyzing a particular job is a great relief for them. It helps them maintain the right quality of employees, measure their performance on realistic standards, assess their training and development needs and increase their productivity. Let’s discuss the job analysis process and find out how it serves the purpose. Also learned, Explain Advantages and Disadvantages of Job Analysis!

#Job Analysis Process:

Identification of Job Analysis Purpose: Well any process is futile until its purpose is not identified and defined. Therefore, the first step in the process is to determine its need and desired output. Spending human efforts, energy as well as money is useless until HR managers don’t know why data is to be collected and what is to be done with it.

Who Will Conduct Job Analysis: The second most important step in the process of job analysis is to decide who will conduct it. Some companies prefer getting it done by their own HR department while some hire job analysis consultants. Job analysis consultants may prove to be extremely helpful as they offer unbiased advice, guidelines, and methods. They don’t have any personal likes and dislikes when it comes to analyzing a job.

How to Conduct the Process: Deciding the way in which job analysis process needs to be conducted is surely the next step. A planned approach about how to carry the whole process is required in order to investigate a specific job.

Strategic Decision Making: Now is the time to make the strategic decision. It’s about deciding the extent of employee involvement in the process, the level of details to be collected and recorded, sources from where data is to be collected, data collection methods, the processing of information and segregation of collected data.

Training of Job Analyst: Next is to train the job analyst about how to conduct the process and use the selected methods for collection and recording of job data.

Preparation of Job Analysis Process: Communicating it within the organization is the next step. HR managers need to communicate the whole thing properly so that employees offer their full support to the job analyst. The stage also involves preparation of documents, questionnaires, interviews and feedback forms.

Data Collection: Next is to collect job-related data including educational qualifications of employees, skills, and abilities required to perform the job, working conditions, job activities, reporting hierarchy, required human traits, job activities, duties and responsibilities involved and employee behavior.

Documentation, Verification, and Review: Proper documentation is done to verify the authenticity of collected data and then review it. This is the final information that is used to describe a specific job.

Developing Job Description and Job Specification: Now is the time to segregate the collected data into useful information. Job Description describes the roles, activities, duties, and responsibilities of the job while job specification is a statement of educational qualification, experience, personal traits and skills required to perform the job.

Thus, the process of job analysis helps in identifying the worth of the specific job, utilizing the human talent in the best possible manner, eliminating unneeded jobs and setting realistic performance measurement standards.

This few Process of job analysis also Studying:

Job analysis is as useful is not so easy to make. In fact, it involves a process. Though there is no fool-proof process of making job analysis, the following are the main steps involved in job analysis:

1. Organisational Job Analysis: Job analysis begins with obtaining pertinent information about a job’. This, according to Terry is required to know the makeup of a job, its relation to other jobs, and its contribution to the performance of the organization.

Such information can be had by dividing background information in various forms such as organisation charts i.e., how the particular job is related to other jobs; class specifications i.e., the general requirement of the job family; job description i.e., starting point to build the revised job description, and flow charts i.e., flow of activities involved in a particular job.

2. Selecting Representative Jobs for Analysis: Analysing all jobs of an organization is both costly and time-consuming. Therefore, only a representative sample of jobs is selected for the purpose of detailed analysis.

3. Collection of Data for Job Analysis: In this step, job data features of the job and required qualifications of the employee are collected. Data can be collected either through questionnaire, observation or interviews. However, due care should be taken to select and use the method of data collection that is the most reliable in the given situation of the job.

4. Preparing Job Description: The job information collected in the above ways is now used to prepare a job description. The job description is a written statement that describes the tasks, duties, and responsibilities that need to be discharged for effective job performance.

5. Preparing Job Specification: The last step involved in job analysis is to prepare job specification on the basis of collected information. This is a written statement that specifies the personal qualities, traits, skills, qualification, aptitude etc. required to effectively perform a job.

May 17, 2018
Explain the Methods of Job Analysis, with Process!

Learn and Understand, Explain the Methods of Job Analysis, with Process!

If you want to study first the Purpose of Job Analysis! So study for better understand. Then learn the Methods of Job Analysis! Now, Though there are several methods of collecting job analysis information yet choosing the one or a combination of more than one method depends upon the needs and requirements of an organization and the objectives of the job analysis process. Typically, all the methods focus on collecting the basic job-related information but when used in combination may bring out the hidden or overlooked information and prove to be great tools for creating a perfect job-candidate fit. Also learn, Meaning and Definition, Explain the Methods of Job Analysis, with Process!

Selecting an appropriate job analysis method depends on the structure of the organization, hierarchical levels, nature of job and responsibilities and duties involved in it. So, before executing any method, all advantages and disadvantages should be analyzed because the data collected through this process serves a great deal and helps organizations cope with current market trends, organizational changes, high attrition rate and many other day-to-day problems.

Let’s discuss few of job analysis methods that are commonly used by the organizations to investigate the demands of a specific job.

Methods of Job Analysis:

Most Common Methods of Job Analysis

#Observation Method:

A job analyst observes an employee and records all his performed and non-performed task, fulfilled and unfulfilled responsibilities and duties, methods, ways and skills used by him or her to perform various duties and his or her mental or emotional ability to handle challenges and risks. However, it seems one of the easiest methods to analyze a specific job but truth is that it is the most difficult one. Why? Let’s Discover.

It is due to the fact that every person has his own way of observing things. Different people think different and interpret the findings in different ways. Therefore, the process may involve personal biases or likes and dislikes and may not produce genuine results. This error can be avoided by proper training of job analyst or whoever will be conducting the job analysis process.

#This particular method includes three techniques: Direct observation, Work Methods Analysis, and Critical Incident Technique. The first method includes direct observation and recording of the behavior of an employee in different situations. The second involves the study of time and motion and is specially used for assembly-line or factory workers. The third one is about identifying the work behaviors that result in performance.

#Interview Method:

In this method, an employee is interviewed so that he or she comes up with their own working styles, problems faced by them, use of particular skills and techniques while performing their job and insecurities and fears about their careers.

This method helps interviewer know what exactly an employee thinks about his or her own job and responsibilities involved in it. It involves analysis of job by the employee himself. In order to generate honest and true feedback or collect genuine data, questions asked during the interview should be carefully decided. And to avoid errors, it is always good to interview more than one individual to get a pool of responses. Then it can be generalized and used for the whole group.

#Questionnaire Method:

Another commonly used job analysis method is getting the questionnaires filled from employees, their superiors, and managers. However, this method also suffers from personal biasness. A great care should be taken while framing questions for different grades of employees.

In order to get the true job-related info, management should effectively communicate it to the staff that data collected will be used for their own good. It is very important to ensure them that it won’t be used against them in anyway. If it is not done properly, it will be a sheer wastage of time, money and human resources.

These are some of the most common methods of job analysis. However, there are several other specialized methods including task inventory, job element method, competency profiling, technical conference, threshold traits analysis system and a combination of these methods. While choosing a method, HR managers need to consider time, cost and human efforts included in conducting the process.

Process Methods of Job Analysis:

Job analysis data is collected in several ways with only the specification of the person who is going to carry out the job analysis. Often workers from the HR department participate in job evaluations; also depending on the different methods of job analysis even the managers, bosses, and employees participate. During complicated job analysis, the industrial engineers handle the time and motion studies.

Another facet of job analysis is the contemplation of the technique used; some techniques of job analysis or methods are observations, interviews, questionnaires and other specific analysis methods. The applications of the techniques used in job analysis mostly depend on the type of organization, its fundamental requirements, and circumstances.

The various methods of Job Analysis are:

1. Observation:

In the job analysis method of observation, the performance of the worker is monitored by a manager, supervisor or job analyst, industrial engineer; the performance is recorded to see whether the tasks and duties are properly done. Job analysis observation may either be continuous or intermittent sampling but the observation is always of limited use since most jobs do not have the capability of doing the observation of the complete job cycles.

Hence observation is efficient in cyclic jobs and when used combined with other methods. The observation might be used by the supervisor or manager to be familiar with the job and its requirements. During other methods in job analysis, the observation method is immensely useful as it provides vital information about the job.

2. Work Sampling:

Work Sampling is a kind of observation; it does not need thorough concentration in all its minute aspects through the whole work cycle. As an alternative; the person doing the job analysis decides the matter and work pace on a specific workday according to the statistical sampling of various actions rather than by constant monitoring and detailed timing of each action. Work Sampling is most effective for regular monotonous jobs and cyclic repetitive jobs.

3. Employee Diary/Log:

In this method, the employee himself records his performance in a diary/log along with the frequency of the duty and the time needed to perform. This technique is useful in some ways but becomes tiresome for the employees to record all their duties and the timings. Even some employees believe that the employee diary/log method diverts them from their work and creates unnecessary distractions.

4. Interviewing:

In the interview technique of collecting data, the manager or the overseer monitors every job place and the worker performing it. Then a model question or interview form is made to ask the workers and note the answers and to get the proper analysis and complete comprehension of the job and its requirements; one has to talk and interview both the employee and the supervisor.

This method is exhaustive when the interviewer has to converse with two or more employees in one job. Often the professional and managerial jobs are very difficult and complex to analyze; hence require complex longer interviews. Thus the interviewing method should be combined with any other method for proper assessment.

5. Questionnaires:

Questionnaires method is the most popular technique for collecting information in job analysis and a survey device is created and distributed amongst the employees and managers to read and answer. The merits of this method are that bulk information can be collected from the employees without much effort; that also in a short span of time.

But the problems of job analysis is that it assumes the employee to answer the questions truthfully without any bias but that in reality is quite impossible; as opinions on their work and other things will always be influenced by their personal beliefs. Due to this problem, the job analysis questionnaire is mostly combined with the interviews and observations.

6. Critical incident method:

This method consists of observation and documentation of other instances and whether the behaviors were effective or futile to produce the desired results. The critical incident method of behavior includes; the reason of the incident and the circumstance, the work was done by the employee and how it was futile or useful, the assumed outcome of the behavior and also an analysis on the influence the behavior of an employee have on the outcome.

This method vastly differs from the other job evaluation, methods of conducting job analysis as only here the employee behavior is not recorded when it is performed but later when the behavior has been evaluated to be futile or useful depending on the results.

Here the behavior is described in retrospect and it is acknowledged that recording of past actions is more difficult and complicated than of present actions when the performance is continued.

May 17, 2018
Explain Advantages and Disadvantages of Job Analysis!
Learn and Study, Explain Advantages and Disadvantages of Job Analysis!

Basically anywhere asking this types of question, What is the Advantages and Disadvantages of Job Analysis? First looking What is Job Analysis?, then Objectives or Purpose of Job Analysis, after that looking study, and Explaining, the Advantages and Disadvantages of Job Analysis! Job analysis is crucial in all human activities but like all human inventions, it also suffers from various limitations. Introduction to Job analysis consists of job responsibilities, information, expertise, capabilities and personal traits and all this lead to success, for the workers. The basic reason for which the organizations require job analysis is to ensure proper selection measures for choosing the suitable applicants. Also learn, Meaning and Definition, Explain Advantages and Disadvantages of Job Analysis!

A logical selection modus operandi is always necessary to make reasonable and trust-worthy job selections. A genuine selection procedure requires job analysis since it identifies the fundamental requirements for that specific job. The purpose of Job Analysis is to establish and document the ‘job relatedness‘ of employment procedures such as compensation, training, performance appraisal, and selection.

What is Job Analysis?

Job analysis helps to recognize and verify the requirements of a job and delineate the duties and obligations of the job. In job, evaluations done on the information collected about the job, the significance should always be given on the job and never on the worker or the individual. The basic notion of job analysis is that the evaluations and judgments are done depending on the job and not on the person.

It is done through cross-examinations and surveys according to the necessities of the occupation and the analysis provides a specific explanation and requirements of the job.

Objectives of Job Analysis:

The aims of Job analysis is to always ascertain and record the job-related information of the employment measures like training, selection, payment and performance assessment. Job Analysis is used for classifying both training and requirement evaluations which consist of the training matter, evaluation exams to understand the usefulness of training, devices used for training and also the techniques of training. Also Learned or More info in here, Purpose of Job Analysis!

#Advantages and Disadvantages of Job Analysis!

Though job analysis plays a vital role in all other human-related activities every process that has human interventions also suffers from some limitations. The process of job analysis also has its own constraints. So, let us discuss the advantages and disadvantages of job analysis process at length.

#Advantages of Job Analysis:

Provides First Hand Job-Related Information: The job analysis process provides with valuable job-related data that helps managers and job analyst the duties and responsibilities of a particular job, risks and hazards involved in it, skills and abilities required to perform the job and other related info.

Helps in Creating Right Job-Employee Fit: This is one of the most crucial management activities. Filling the right person in a right job vacancy is a test of skills, understanding, and competencies of HR managers. Job Analysis helps them understand what type of employee will be suitable to deliver a specific job successfully.

Helps in Establishing Effective Hiring Practices: Who is to be filled where and when? Who to target and how for a specific job opening? Job analysis process gives answers to all these questions and helps managers in creating, establishing and maintaining effective hiring practices.

Guides through Performance Evaluation and Appraisal Processes: Job Analysis helps managers evaluating the performance of employees by comparing the standard or desired output with delivered or actual output. On these bases, they appraise their performances. The process helps in deciding whom to promote and when. It also guides managers in understanding the skill gaps so that right person can be fit at that particular place in order to get desired output.

Helps in Analyzing Training & Development Needs: The process of job analysis gives the answer to following questions:
- Who to impart training?
- When to impart training?
- What should be the content of training?
- What should be the type of training: behavioral or technical?
- Who will conduct training?
Helps in Deciding Compensation Package for a Specific Job: A genuine and unbiased process of job analysis helps managers in determining the appropriate compensation package and benefits and allowances for a particular job. This is done on the basis of responsibilities and hazards involved in a job.

#Disadvantages of Job Analysis:

Time Consuming: The biggest disadvantage of Job Analysis process is that it is very time-consuming. It is a major limitation especially when jobs change frequently.

Involves Personal Biasness: If the observer or job analyst is an employee of the same organization, the process may involve his or her personal likes and dislikes. This is a major hindrance to collecting genuine and accurate data.

Source of Data is Extremely Small: Because of small sample size, the source of collecting data is extremely small. Therefore, information collected from few individuals needs to be standardized.

Involves Lots of Human Efforts: The process involves lots of human efforts. As every job carries different information and there is no set pattern, customized information is to be collected for different jobs. The process needs to be conducted separately for collecting and recording job-related data.

Job Analyst May Not Possess Appropriate Skills: If job analyst is not aware of the objective of job analysis process & does not possess appropriate skills to conduct the process, it is a sheer wastage of company’s resources. He or she needs to be trained in order to get authentic data.

Mental Abilities Can not be Directly Observed: Last but not the least, mental abilities such as intellect, emotional characteristics, knowledge, aptitude, psychic and endurance are intangible things that can not be observed or measured directly. People act differently in different situations. Therefore, general standards cannot be set for mental abilities.
May 17, 2018
Explain the Purpose of Job Analysis!
Learn and Understand, Explain the Purpose of Job Analysis!

Job Analysis information has been found to serve a wide variety of purposes. More recently, job analysis data have been used in areas such as compensation, training and performance appraisal among many others. Of particular interest here is the application of job analysis data in HR Selection. Also Learned, Meaning and Definition, Explain the Purpose of Job Analysis!

As discussed already, job analysis involves collecting and recording job-related data such as knowledge and skills required to perform a job, duties, and responsibilities involved, educational qualifications and experience required and physical and emotional characteristics required to perform a job in the desired manner.

The main purposes of conducting a job analysis process are to use this particular information to create a right fit between job and employee, to assess the performance of an employee, to determine the worth of a particular task and to analyze training and development needs of an employee delivering that specific job.

Let’s understand the concept with the help of an example. If the job of an executive sales manager is to be analyzed, the first and foremost thing would be to determine the worth of this job. The next step is to analyze whether the person is able to deliver what is expected of him. It also helps in knowing if he or she is perfect for this job. The process doesn’t finish here. It also involves collection of other important facts and figures such as job location, department or division, compensation grade, job duties, routine tasks, computer, educational, communicational and physical skills, MIS activities, reporting structure, ability to adapt in a given environment, leadership skills, licenses and certifications, ability to grow and close sales, ability to handle clients, superiors and subordinates and of course, the presentation of an individual.

Broadly speaking in the context of HR selection, job analysis data are frequently used to:
- Identify employee specifications (KSA) necessary for success on a job.
- Select or develop predictors that assess important KSAs and can be administered to job applicants and used to forecast those employees who are likely to be successful on the job.
- Develop criteria or standards of performance that employees must meet in order to be considered successful on a job.
By examining factors such as the tasks performed on a job as well as the KSAs needed to perform these tasks, one can obtain an idea of what ought to be measured by predictors used in employment screening. When predictors and criteria are developed based on the results of a job analysis, a selection system that is job-related can be developed. By using a job-related selection system we are in a much better position to predict who can and who cannot adequately perform a job. In addition, with a job-related selection system, we are far more likely to have an employment system that will be viewed by job applicants as well as the courts as being a “fair” one.

#Better Understand the Purpose of Job Analysis:

Job Analysis plays an important role in recruitment and selection, job evaluation, job designing, deciding compensation and benefits packages, performance appraisal, analyzing training and development needs, assessing the worth of a job and increasing personnel as well as organizational productivity.

#Recruitment and Selection:

Job Analysis helps in determining what kind of person is required to perform a particular job. It points out the educational qualifications, level of experience and technical, physical, emotional and personal skills required to carry out a job in desired fashion. The objective is to fit a right person at a right place.

#Performance Analysis:

Job analysis is done to check if goals and objectives of a particular job are met or not. It helps in deciding the performance standards, evaluation criteria, and individual’s output. On this basis, the overall performance of an employee is measured and he or she is appraised accordingly.

#Training and Development:

Job Analysis can be used to assess the training and development needs of employees. The difference between the expected and actual output determines the level of training that needs to be imparted to employees. It also helps in deciding the training content, tools and pieces of equipment to be used to conduct training and methods of training.

#Compensation Management:

Of course, job analysis plays a vital role in deciding the pay packages and extra perks and benefits and fixed and variable incentives of employees. After all, the pay package depends on the position, job title and duties, and responsibilities involved in a job. The process guides HR managers in deciding the worth of an employee for a particular job opening.

#Job Designing and Redesigning:

The main purpose of job analysis is to streamline the human efforts and get the best possible output. It helps in designing, redesigning, enriching, evaluating and also cutting back and adding the extra responsibilities in a particular job. This is done to enhance the employee satisfaction while increasing the human output.

Therefore, job analysis is one of the most important functions of an HR manager or department. This helps in fitting the right kind of talent at the right place and at the right time.
May 17, 2018
What is Foreign Exchange Market or Forex Market?

A Foreign exchange market or Forex market is a market in which currencies are bought and sold. It is to distinguish from a financial market where currencies borrow and lent. This market determines the foreign exchange rate. It includes all aspects of buying, selling, and exchanging currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world, followed by the Credit market. Also learned, Goods and Services Tax, What is Foreign Exchange Market or Forex Market?

Learn and Study, What is Foreign Exchange Market or Forex Market?

The foreign exchange market (Forex, FX, or currency market); a global decentralized or over-the-counter (OTC) market for the trading of currencies.

Definition of Foreign Exchange Market:

It is a market where the buyers and sellers involving in the sale; and, purchase of foreign currencies. In other words, a market where the currencies of different countries are bought and sold calls a foreign exchange market.

The structure of the foreign exchange market constitutes central banks, commercial banks, brokers, exporters and importers, immigrants, investors, tourists. These are the main players of the foreign market, their position, and place shown in the figure below.

At the bottom of a pyramid are the actual buyers; and, sellers of the foreign currencies- exporters, importers, tourists, investors, and immigrants. They are actual users of the currencies and approach commercial banks to buy them.

The commercial banks are the second most important organ of the foreign exchange market. The banks dealing in foreign exchange play a role of “market makers”; in the sense that they quote daily the foreign exchange rates for buying and selling of foreign currencies. Also, they function as clearinghouses; thereby helping in wiping out the difference between the demand for and the supply of currencies. These banks buy currencies from the brokers and sell them to the buyers.

Other things:

The third layer of a pyramid constitutes the foreign exchange brokers. These brokers function as a link between the central bank and the commercial banks; and, also between the actual buyers and commercial banks. They are the major source of market information. These are the persons who do not themselves buy the foreign currency; but rather strike a deal between the buyer and the seller on a commission basis.

The central bank of any country is the apex body in the organization of the exchange market. They work as the lender of the last resort and the custodian of foreign exchange of the country. Also, the central bank has the power to regulate and control the foreign exchange market to assure that it works in an orderly fashion. One of the major functions of the central bank is to prevent the aggressive fluctuations in the foreign exchange market, if necessary, by direct intervention. Intervention in the form of selling the currency when it overvalues and buying it when it tends to undervalue.

General Features of Forex Market:

They describe it as an OTC (Over the counter) market as there is no physical place where the participants meet to execute their deals. It is more an informal arrangement among the banks and brokers operating in a financing center purchasing and selling currencies, connected by telecommunications like telex, telephone, and a satellite communication network, SWIFT (Society for Worldwide Interbank Financial Telecommunication).

The term foreign exchange market uses to refer to the wholesale segment of the market, where the dealings take place among the banks. Also, the retail segment refers to the dealings that take place between banks and their customers. Also, the retail segment refers to the dealings that take place between banks and their customers. The retail segment situates in a large number of places. They can consider not as foreign exchange markets, but as the counters of such markets.

The leading foreign exchange market in India is Mumbai, Calcutta, Chennai, and Delhi is other center’s accounting for the bulk of the exchange dealings in India. The policy of the Reserve Bank has been to decentralize exchange operations and develop broader-based exchange markets. As a result of the efforts of Reserve Bank Cochin, Bangalore, Ahmadabad, and Goa have emerged as the new center of the foreign exchange market.

Size of the Market:

It is the largest financial market with a daily turnover of over USD 2 trillion. Also, Foreign exchange markets were primarily developed to facilitate the settlement of debts arising out of international trade. But these markets have developed on their own so much so that a turnover of about 3 days in the foreign exchange market is equivalent to the magnitude of world trade in goods and services.

The largest foreign exchange market in London was followed by New York, Tokyo, Zurich, and Frankfurt. As well as, the business in foreign exchange markets in India has shown a steady increase as a consequence of the increase in the volume of foreign trade of the country, improvement in the communications systems, and greater access to the international exchange markets. Still, the volume of transactions in these markets amounting to about USD 2 billion per day does not compete favorably with any well developed foreign exchange market of international repute.

The reasons are not far to seek. Also, the rupee is not an internationally traded currency and is not in great demand. Much of the external trade of the country designated in leading currencies of the world, Viz., US dollar, pound sterling, Euro, Japanese yen, and Swiss franc. Incidentally, these are the currencies that trade actively in the foreign exchange market in India.

24 Hours Market:

The markets are situated throughout the different time zones of the globe in such a way that when one market is closing the other is beginning its operations. Thus at any point in time one market or the other is open. Therefore, it states that the foreign exchange market is functioning 24 hours of the day.

However, a specific market will function only during business hours. Some of the banks having the international network and having centralized control of funds management may keep their foreign exchange department in the key center open throughout to keep up with developments at other centers during their normal working hours. In India, the market is open for the time the banks are open for their regular banking business. No transactions take place on Saturdays.

Efficiency:

Developments in communication have largely contributed to the efficiency of the market. Also, the participants keep abreast of current happenings by access to such services as Dow Jones Telerate and Teuter.

Any significant development in any market is almost instantaneously received by the other market situated at a far off place and thus has a global impact. This makes the foreign exchange market very efficient as if the functions under one roof.

Currencies Traded in Forex Markets:

In most markets, the US dollar is the vehicle currency, Viz., the currency used to denominate international transactions. This is even though with currencies like the Euro and Yen gaining a larger share, the share of the US dollar in the total turnover is shrinking.

Physical Markets:

In few centers like Paris and Brussels, foreign exchange business takes place at a fixed place, such as the local stock exchange buildings. At these physical markets, the banks meet and in the presence of the representative of the central bank and based on bargains, fix rates for several major currencies. This practice calls fixing.

The rates thus fixed uses to execute customer orders previously placed with the banks. An advantage claimed for this procedure is that the exchange rate for commercial transactions will market-determine, not influence by any one bank. However, it observes that the large banks attending such meetings with large commercial orders backing up, tend to influence the rates.

What is Foreign Exchange Market or Forex Market?

May 15, 2018
What is the Scope of Industrial Relations?
The concept of industrial relations is explaining their scope and IR has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others. Also, learn the Importance of Industrial Relations.

Learn and Study, What is the Scope of Industrial Relations?

The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relations broadly define to include the relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labor) relations. Now its meaning has become more specific and restricted.

Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers.

The scope of industrial relations is quite vast.

The main issues involved here include the following:
- Collective bargaining.
- Machinery for settlement of industrial disputes.
- Standing orders.
- Worker’s participation in management, and.
- Unfair labor practices.
Definition and Scope of industrial relations:

The ultimate aim of any human activity at the socio-economic level should be the minimal use of available resources in achieving the maximum economic and social results, i.e. to be increasingly productive. The productivity of capital, machines, and resources other than human resources can be improved in various ways.

But improving the productivity of human resources is a complex and onerous task, for the simple reason that “labor” stands for both an individual human being and a group of individuals with different perceptions about productivity, motivation and attitudes, and with different needs. In organizations, individuals do not operate in isolation. They interact and react collectively to various issues in which management has an interest, including productivity.

Thus productivity improvement extends beyond the domain of the management of workers and becomes a labor-management or industrial relations issue to be negotiated, settled and implemented jointly by the management and the union. Productivity improvement as an industrial relations issue thus acquires a greater significance in all enterprises where the employees are organized.

“Industrial relations” broadly means the relations arising out of employment. In this broad sense, it covers the area of personnel management or human resources management and labor-management relations or labor relations. In its narrower sense, it refers only to the relations between management and the unions. And in its popular usage, it refers only to labor-management relations.

More things…

Industrial relations in organizations is the total of the management’s attitude to labor and of labor’s attitude to management’s policies and practices that affect the interests of the employees. Industrial relations are, basically, interactions between management and union(s). They involve continuous dialogue between the two sides on various issues of common interest; through such dialogues, the two sides shape each other’s attitudes.

The approach, methods, strategies, and techniques, etc., of management in achieving the desired objectives vary from one organization to another. This is especially true about productivity improvement through industrial relations. It is, therefore, primarily the responsibility of management to develop industrial relations with workers and the unions to promote productivity continuingly.

Another scope of Industrial Relations:

Based on the above definitions, the scope of Industrial Relations can easily be delineated as follows:
1. Labor relations, i.e., relations between labor union and management.
2. Employer-employee relations i.e. relations between management and employees.
3. The role of various parties’ viz., employers, employees, and state in maintaining industrial relations.
4. The mechanism of handling conflicts between employers and employees, in case of conflicts, arise.
The main aspects of industrial relations can be identified as follows:
1. Promotion and development of healthy labor-management relations.
2. Maintenance of industrial peace and avoidance of industrial strife.
3. Development and growth of industrial democracy.
Scope of Industrial Relations, Image from Online.
May 13, 2018
What is the Importance of Industrial Relations?
Industrial relations refers to processes and outcomes involving employment relationships. Importance of Industrial Relations for Employees and Employers. Frequently the term used in a narrower sense, for employment relationships involving the collective representation of employees in the form of a labor union or employee association, especially in the United States.

Learn and Study, What is the Importance of Industrial Relations?

At the other extreme, industrial relations has been defined by Thomas A. Kochan, in his book Collective Bargaining and Industrial Relations, as “all aspects of people at work,” but there are some aspects of people at work that entail highly technical subjects (e.g., industrial hygiene, ergonomics) which are not normally regarded as falling within the mainstream of industrial relations study. Also, learn the Importance of Employee Relations.

4 Importance of Industrial Relations:

The following industrial relations 4 importance below are;
- Increased Productivity: With amicable industrial relations both the workers and managers continue to work on their respective position and contribute towards the overall productivity of the firm. Thus, IR ensures the continuity of production.
- Reduced Industrial Disputes: An effective IR helps in the reduction of industrial disputes as both the management and the workers maintain harmonious relations with each other and work in unison towards the accomplishment of production objectives.
- Increased Morale: The peaceful industrial relations boost the moral level of the employees as they feel that their interest coincides with that of the employer’s, and their efforts will result in the overall profitability of the firm.
- Minimization of Wastage: A good IR ensures reduced wastage as the resources – Man, Machinery, Material are fully utilized and are effectively contributing towards the overall productivity of the firm.
More importance;

The significance of good industrial relations in any country cannot ones emphasize. Good industrial relations are necessary for the following reasons.
1. To help in the economic progress of a country. The problem of an increase in productivity is essentially the problem of maintaining good industrial relations. That is why they form an important part of the economic development plan of every civilized nation.
2. To help in to establish and to maintain true industrial democracy this is a prerequisite for the establishment of a socialist society.
3. They help the management both in the formulations of informed labor relations policies and in their translation into action.
4. To encourage collective bargaining as a means of self-regulation. They consider the negotiation process as an educational opportunity a chance both to learn and to reach.
5. To help the government making laws forbidding unfair practices of unions and employers. In climate good industrial relations every party works for the solidarity of worker’s movement. Unions gain more strength and vitality. There is no inter-union rivalry.
6. Employees give unions their rightful recognition and encourage them to participate in all decisions. Unions divert their activities from fighting and belligerence to increase the size of the distribution and to make their members more informed (workers education) on vital issues concerning them.
7. To boost the discipline and morale of workers. Maintenance of discipline ensures orderliness. Effectiveness and economy in the use of resources. On the other hand, lack of discipline means waste, loss, and confusion. It also means insubordination and non-co-operation.
8. Industrial relations are eventually human relations, therefore, the same basis of human psychology prevails in the field of industrial relations, and the efficiency of an industry is directly related to the quality of the relationship, which is being built up amongst the individuals who work together.
Importance of Industrial Relations for Employees and Employers:

Industrial relations usually imply good and positive relations between employees and employers. The good Industrial Relations help run an industry effectively and successfully, i.e., the desideratum of the day. Top 5 importance of Industrial Relations can imbue with the multiplicity of justifications.

To mention, good Industrial Relations help:

Foster Industrial Peace:

Under the mechanism of Industrial Relations, both employees and managers discuss the matter and consult each other before initiating any actions. Doubts, if any, in the minds of either party are removed. Thus, unilateral actions that prop confusion and misunderstanding disappear from the scene. In this way, Industrial Relations helps create a peaceful environment in the organization. Peace, in turn, breeds prosperity.

Promote Industrial Democracy:

Industrial democracy means the government-mandated worker participation at various levels of the organization about decisions that affect workers. It is mainly the joint consultations, that pave the way for industrial democracy and cement relationships between workers and management. This benefits them both. The motivated workers give their best and maximum to the organization, on the one hand, and share their share of the fruits of organizational progress jointly with management, on the other.

The benefit to Workers:

Industrial Relations benefits workers in several ways. For example, it protects workers against unethical practices on the part of management to exploit workers by putting them under inhuman working conditions and niggardly wages. It also provides a procedure to resolve workers’ grievances relating to work.

The benefit to Management:

Industrial Relations protects the rights of managers too. As and when workers create the problem of indiscipline, Industrial Relations provides managers with a system to handle employee indiscipline in the organization.

Improve Productivity:

Experiences indicate that good industrial relations serve as the key to increased productivity in industrial organizations. Eicher Tractors, Alwar represents one such case. In this plant, productivity went up from 32 percent to 38 percent between 1994 and 1997. This increase attribute to the peaceful IR in the plant.

Similar other success stories abound in the country. As reported by V.S.P. Rao, Sundaram Fasteners (A TVS group company which begged the prestigious GM award for the fourth successive year in 1999 as a quality supplier of radiator caps) well knows for zero breakdowns, zero accidents, and zero defects. The company did not lose even a single day due to strike. The per-employee productivity is comparable to the best in the world. One study rates the company among the 20 most competitive companies in Asia.

Importance of Industrial Relations for Employees, Image from Online.
May 11, 2018