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  • 8/9/2019 Employee Relations Management_completeMU0003


    Spring 2010(Jan-June)

    Master of Business Administration-MBA Semester 3

    MU0003 Employee Relations Management - 2 Credits

    (Book ID: B0775)

    Assignment Set- 1 (30 Marks)

    Note: Each question carries 10 Marks. Answer all the questions.

    Q.1 Elaborate on the framework of Employee Relations [10]


    The Framework of Employee Relations

    Any organization, in order to attain its goals successfully, must always endeavour to develop and

    maintain healthy employee relations. The framework for such relations must be based on the


    a) Integration:

    The needs of individuals, groups and the organization must be seamlessly integrated. Such

    cross-matching of interests will invariably result in a healthy organizational climate and

    promote creativity and productivity. It is a management responsibility to initiate measures to

    create an atmosphere of mutual trust and understanding so that the employees appreciate

    both organizational and environmental constraints and support the company at all times.

    b) Employee Participation:

    Supportive climate and mutual trust and confidence can be created by involving workers and

    their groups in the decision-making process. Management should be open to ideas and

    accept or reject an idea or suggestion based on its merits and not on the source of the idea

    or suggestion. The management must appreciate the problem of the employees and strive to

    resolve these at the earliest. Communication channels must be kept open and the employee

    must be given an opportunity to be heard. Such involvement not only improves the quality of

    decisions but also leads to the satisfaction of ego needs of employees. They feel recognized

    and their attitude is always positive. Joint management councils or committees consisting of

    equal representative of workers and management may be constituted. Frank and fair

    discussions/meetings help to secure and preserve unity among workers and managers.

    Effective use of group dynamics is a must.

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    c) Congenial Work Environment:

    Management must create a work environment wherein workers can perform their jobs with a

    sense of security and camaraderie. They must value the task they are performing.

    Simultaneously, the management must ensure job security, a meaningful and challenging

    job, scope for opportunity and advancement and satisfying interpersonal relationships for the


    d) Communication:

    Most of the employee relations problems arise due to lack of communication or inadequate

    or a distorted communication. The desire to have knowledge about the current situation,

    future prospects, company policies and contemplated changes is one of the basic needs of

    an employee. Lack of communication leads to fear, misunderstanding and distrust.

    Therefore, management should maintain open channels of communication, particularly

    upward communication. Employee handbooks, grievance procedures, suggestion schemes,etc. enable management to understand the feelings, fears and aspirations of employees.

    Informal communication or grapevine is generally used to supplement and support the formal

    channels of communications. However, strict vigil on rumours must be kept with all efforts to

    arrest them at the earliest.

    e) Adaptive Leadership:

    Leadership style must be determined by the situation and must be flexible. An effective

    leader is one who fully understands his employees and adapts his approach to the

    requirements of the situation. In order to develop healthy relations, managers should listen

    carefully, talk less and give decision in the opportune time. Decision delayed is harmful to the

    organization as it leads to mistrust. Managers must uphold the dignity of the individual

    employees and must have a positive attitude. Orders must be clear and unambiguous.

    f) Resolving Conflicts:

    Continuous efforts must be made to reduce and minimize inter-personal and inter-group

    conflicts. The genesis of the conflict must be identified and the solution must be such that it

    satisfies the interest of both parties albeit not fully. Healthy employee relations can be

    developed through an integrative and problem-solving approach in which both the parties

    gain satisfaction of their needs in a co-operative manner and not at the expense of one

    another. Such a situation requires impartial, continuous and positive communication with the

    parties concerned.

    g) Conditioning Behaviour:

    Conditioning the behaviour of people is one of the effective ways of building healthy

    employee relations at work. This involves the use of positive and negative reinforcements.

    Rewards must be used to reinforce desirable behaviour while punishment must be used to

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    discourage undesirable behaviour. The most important aspect being that the managers must

    themselves have exemplary conduct.

    h) Personnel Counseling:

    An ideal manager must have big ears to listen to all the problems, a pair of big eyes to

    observe things, a big head to analyze and arrive at an effective solution, a big tummy to keep

    things confidential and a small mouth to speak less. Thus a manager must listen patiently and

    help expeditiously resolve the problems faced by workers both inside and outside the

    organization. Counseling reduces the build up of tension and improves their self-confidence.

    The employee feels at home in the four walls of the factory or office.


    Q.2 Discuss any five important elements of good organizational culture. [10]

    Answer:Essential Elements of a Good Organizational Culture

    a) Vision, Mission and Values

    The vision, mission and core values of the organization must not only be clearly written down,

    displayed prominently but also be integrated as key statements of purpose and philosophy into

    the recruitment and orientation programs, internal company communications, training and

    development schemes, methods of appraisal, recognition and reward. It must be ensured that

    each and every employee of the organization is aware of the vision, mission and values of the

    organization and is able to relate to it from his own sphere of activities.

    b) New Staff Recruitment

    All new recruitments must be done keeping the organizations values and mission central.

    Aspiring employees must be given adequate time to get to know these aspects before they come

    and join as members of the team. All prospective employees must be screened with tools like

    profiling available in the market today.

    c) New Staff Orientation

    The new employees joining the organization must be actively helped in settling down and given

    confidence of a long and productive career. Studies show that employees who get thorough and

    thoughtful orientations will stay longer and contribute more throughout their careers.

    d) Training & Development Programs

    Investing in training and staff development programs is good. But many companies engage a

    wide assortment of trainers and programs, making little effort to ensure a smooth and beneficial

    integration. It must be ensured that all the trainers, be it outside or in-house, are clearly aware of

    the organizations vision, mission and values. They must be able to describe the issues and major

    challenges facing their company today.

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    e) Annual Appraisals

    Annual appraisals must be a stamp of quality. If talent has to be retained, then the assessment

    must be on the range, depth and volume of the employees ideas. If the organization encourages

    open culture, the appraisals must also be on an open format. If, however, a cross-functional and

    non-hierarchical communication is desired, a 360-degree appraisal process must be employed.

    No amount of broadcasting company values will matter if people are measured by other



    Q.3 Mr.Kapoor is the CEO of Dream Dcor Furnitures Company. He has to diversify his business.

    He wants to assess the leadership style of some of his senior managers.

    Manager 1- (Has a high consideration for people and low for structure)

    Manager 2 (Has a high consideration for people and also high for structure)

    Manager 3 (Has a low consideration for people and high for structure)Manager 4 (Has a low consideration for people and low for structure)

    Refer to the Grid approach and help Mr Kapoor to clearly understand the leadership styles for all

    the managers. Which style is best, according to you? Explain. [10]


    Grid Approach of Leadership (Blake Mouton)

    The grid approach to leadership has been developed by R.R. Blake and J.S. Mouton. It was

    primarily developed for assessing the personality of a leader in terms of his concern for task and

    concern for people, and later, attempting behavioural modification in him through Managerial Grid

    training program. Since each axis of the grid has 9 steps, a leaders performance can be plotted

    anywhere on 81 small boxes of grid by obtaining h