Emerging Aspects of Organizational Behavior (OB)

 1. Globalization:

• Trapping new marketplace, new technology, or reducing costs through specialization or cheap labor are a few of the different reasons that motivate organizations to become global

• Moreover, the way companies integrate their business practices with other countries has also changed.

• As the old principles no longer work in the age of globalization Strategic changes, technological change, and changes in organizational culture including organizational structural change and a redesign of work tasks are some of the important ones.

2. Emerging employment relationship:

• Changing trends in organizations in recent years have made it of utmost importance to consider some of the emerging employee relations issues that can affect employers in the coming decade.
• Understanding these issues will help management to better plan and respond to changes in the workplace.
• The employer-employee relationship is also showing change in the modern era. Employers are no more autocrats and participative style of leadership is welcomed.
• Flexible working hours and increased authority motivate employees to perform at their best.
• Management now welcomes upward communication and participation of lower-level employees in the decision-making process.

3. Changing Workforce:

• The demographic of the workforce has changed in recent years. This is due to several factors such as an aging population, labor shortages, and immigration.
• Another significant factor that has changed the workforce is the changes in the attitudes of workers. Employers need to adapt their recruitment, training, and management processes to adapt to the changing workforce.
• For example, New parents now want to work closer to home or from home, and employers may find that they need to make this a possible option to retain or find new staff.
• Allowing people to work from home will also make the employer and job more attractive to a wider range of people.

4. Knowledge Management:

• Knowledge management is a structured activity that improves an organization’s capacity to acquire, share, and utilize knowledge for its survival and success.
• The first is the shared assumptions about what knowledge is and which knowledge is worth managing. Second, is the relationship between individual and organizational knowledge. Third is the context for social interaction that determines how knowledge will be used in particular situations. Fourth is the processes by which knowledge is created, legitimated, and distributed in organizations.

There are three basic elements of knowledge management

1. Knowledge acquisition: It is a method of learning through experiences, sensation, or perception. 
2. Knowledge sharing: Knowledge sharing is a process through which knowledge is shared among family, friends, or any community.
3. Knowledge dissemination: It is the conceptual and instrumental use of new knowledge. Increased awareness and ability to make informed choices among available alternatives are the outcomes of knowledge dissemination.
4. Knowledge maps: Knowledge maps guide employees to understand what knowledge is needed to increase their efficiency and productivity and where this knowledge is located. 

5. Information Technology and OB:

• Technological change and advancement are some of the most salient factors impacting organizations and employees today.
• In particular, the prominence of information technology (IT) has grown manyfold in recent years.
• This innovation in IT has opened new ways of conducting business that are different from the past. Technology has changed the nature of work as well as the roles of employees.
• It has become important for the business and management to understand and take these issues into consideration while introducing or implementing any new technology. ]
• Frequent sessions on change management can help employees understand, use and adopt new technologies easily. 

Employee Discipline

Discipline is the regulation and modulation of human activities to produced a controlled performance. There are two kinds of discipline:

1. Positive Discipline: 
• Creation of an atmosphere in the organization whereby employees willingly conform to the established rules and regulations
• can be achieved through rewards and leadership.
2. Negative Discipline:
• Penalties are used to force the workers to obey rules and regulations. 

HOT STOVE RULE:

• Formulated by Douglas Mcgregor
• He gives a good example of how to impose disciplinary actions without generating resentment. For this purpose he described four characteristics:

1. When You Touch The Hot Stove (Immediate Action): You will burn your hand, the burn was immediate. Immediately you will understand the cause and effect of the offence. The discipline was directed against the act not against anybody else. You learn your lesson quickly.
2. You Had Warning (Previous Warning): as you knew the stove was red hot and you knew what would happen to you if you touch it. You knew the rules & regulations previously issued to you by the company prescribing the penalties for violation of any particular rule, so you cannot claim you were not giving a previous warning.
3. The Discipline Was Consistent (Consistency): Every time you touch the hot stove, you get burned. Consistency in the administration of disciplinary action is essential. Excessive lienency as well as too much harshness creates not only dissatisfaction but also resentment.
4. The Discipline Was Impersonal (Impersonal Action): Whoever touches the stove gets burned, no matter who is he. The disciplinary action is directed against the act, not against the person. After disciplinary action has been applied, the supervisor should take the normal attitude towards the employee/\.

Equal Remuneration Act 1976

Section 1: Commencement:

• Come into force on 8th March 1976.
• It extends to whole of India

Section 2: Important Definitions under this act:

Section 2(a) - Appropriate Government:

1. in relation to any employment carried on by or under the authority of central government, or a railway administration, or in relation to a banking company, a mine, oilfield or major port or any corp established by or under a central government, The Central Government., And,
2. in relation to any other employment, The State Government.

Section 2(c) - Employer:

has the meaning assigned to it in clause (f) of section 2 of Payment of Gratuity Act 1972, which states:

'Employer' means, in relation to any establishment, factory, mine, oilfield, plantation, port, railway company or shop-

1. belonging or under control of central or state government - a person appointed by the appropriate government for the supervision and control of employees or when no on has been appointed, the head of the ministry or department concerned.
2. belonging or under control of local authority -  a person appointed by such authority for the supervision and control , if not appointed, then the Chief Executive Officer of the local authority.
3. In any other case, person, or authorized person who has the ultimate control over the affairs of the establishment, factory, mine, oilfield, plantation, port, railway company or shop and where the said affairs are entrusted to any other person whether called a manager, managing director or by any other name.

Section 2(d) - 'Man' & 'Woman':

male and female human beings, respectively, of any age.

Section 2(e) - Notification:

notification published in the official gazette.

Section 2(g) - Remuneration:

means the basic wage or salary, and any additional emoluments whatsoever payable, either in cash or in kind, to a person employed in respect of employment or work done in such employment, if the terms of the contract of employment, express or implied, were fulfilled.

Section 2(h) - Same work or work of similar nature:

Work in respect of which the skill, effort and responsibility required are the same, when performed under similar working conditions, by a man or woman and the difference, if any, not of practical importance.

Section 2(i) - Worker:

a worker in any establishment or employment in respect of which this act has came into force.

Section 3 - Act to have overriding Effect

Section 4 - Duty of Employer to Pay Equal Remuneration to Men & Women Workers for Same Work or Work of Similar Nature

Section 5 - No Discrimination to be made while recruiting Men & Women Workers

Section 6 - Advisory Committee:

• For the purpose of providing increasing employment opportunities for women
• established by appropriate government, to advice it with regard to the extent to which women may be employed in such establishment as the central government may, by notification, specify in this behalf.
• consist atleast 10 persons, to be nominated by appropriate government, of which one half shall be women.

Section 7 - Power of Appropriate Government to appoint authorities for hearing and deciding claims and complaints:

• Appropriate government appoints such officers, not below the rank of a Labor Officer, as it thinks fit to be the authorities for  the purpose of hearing and deciding complaints with regard to contravention of any provision of this act, claims arising out of non payment of wages at equal rates to men and women for the same work or work of similar nature.
• define the local limits within which each such authority shall exercise its jurisdiction
• every authority shall have all the powers of civil court under the code of civil procedure, 1908, for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of documents.
• every such authority shall be deemed to be a civil court for all the purposes of section 195 and chapter XXVI of code of criminal procedure, 1973

Section 8 - Duty of Employers to Maintain Registers

Section 9 - Inspector:

• appointed by appropriate government
• for the purpose of making an investigation as to whether the provisions of this act, are being complied with by employers and may define local limits within which an inspector may make such investigation.
• every inspector shall to be deemed to be a public servant
• an inspector may, at any place, within the local limits of his jurisdiction-
• enter at any reasonable time, any building, factory, premises or vessel
• require any employer to produce any register, muster roll or any other document
• take any evidence
• examine the employer, his agent or servant or any other person in charge
• make copies or take extracts from any register or document

Section 10 - Penalties:

1. if employer:
• omits or fails to maintain any register, or
• omits or fails to produce any register, or
• omits or refuses to give any evidence, or
• omits or refuses to give any information,  shall be punishable of simple imprisonment, which can extend upto 1 month or rs. 10,000 or both
2. if, after the commencement of this act, any employer:
• makes any recruitment in contravention of this act, or
• makes any payment of remuneration at unequal rates, or
• makes any discrimination between men and women workers, or
• omits or fails to carry out any direction made by appropriate government under subsection (5) of section 6., shall be punishable with atleast Rs. 10,000, which may extend to Rs. 20,000 or imprisonment at least 3 months, which may extend to 1 years, or both

Section 11 - offences by companies

Section 12 - Cognizance & Trial of Offences

Section 13 - Power to make Rules

Section 14 - Power of Central Government to give Directions

Section 15 - Act not to apply in certain cases:

Nothing in this act shall apply - 

• to cases affecting the terms and conditions of a woman's employment in complying with the requirements of any law giving special treatment to women, or
• to any special treatment accorded to women in connection with - 
• the birth or unexpected birth of a child, or
• the terms and conditions relating to retirement, marriage or death or to any provision made in connection with the retirement, marriage or death.

Section 16 - Power to make Declaration

Section 17 - Power to remove Difficulties

Section 18 - Repeal & Saving

Note: Only important sections have described in detail; kindly refer bare act for further clarification

Models of Human Resource Management (Part II)

The Guest Model:

It was developed by David Guest in 1997 and claims to be much superior to other models. This model claims that the HR manager has specific strategies to begin with, which demand certain practices and when executed, will result in outcomes. These outcomes include behavioral, performance and financial related. (See Above Figure).

The model emphasizes the logical sequence of six components i.e. HR strategy, HR practices, HR outcomes, Behavioral outcomes, Performance outcomes and Financial outcomes. Looking inversely, financial results depend on employee performance, which in turn is the result of action oriented employee behaviors. Behavioral outcome are the result of employee commitment, quality and flexibility, which in turn are impacted by Hr practices. HR practices need to be in turn with HR strategies which are invariably aligned with organizational strategies.

The Warwick Model:

This model was developed by two researchers, Hendry and Pettigrew of university of Warwick (hence the name Warwick model). Like other models, the Warwick proposition centres around five elements (See Figure):

• Outer Context (macro environmental forces)
• Inner Context (firm specific or micro environmental forces)
• Business Strategy Content
• HRM Context
• HRM Content

This model takes cognizance of business strategy and HR practices (as the Guest Model), the external and internal context (unlike the Guest Model), in which these activities take place, and the process by which such changes take place, including interactions between changes in both context and content. the strength of the model is that it identifies and classifies important environmental influences on HRM. It maps the connection between the external and environmental factors and explores how HRM adapts to changes in the context. Obviously, those organisations achieving an alignment between the external and internal contexts will achieve performance and growth.

Storey Model - Hard HRM - Soft HRM (1989):

Hard HRM:

Focuses on the costs incurred by the human resources of the firm. In this approach:

• workers primarily viewed as a cost to the company
• Individualistic
• rejection/marginalization of industrial relations
• rejection of differences of viewpoints between managers and employees -  these are assumed to be similar
• emphasis on gaining work efficiancies
• sharp financial focus

Soft HRM:

Stresses the human aspect of the firm. Key points of this approach are:

• Workers viewed as exploitable assets.
• more of concern with the employee's views
• emphasis on employee relations
• employee involvement and commitment encouraged
• Humanistic edge of thinking
• development of core employees

Best Practice Model - Johnson (2000):

Johnson (2000) details," the best practice or the high performance work practices are described as Hr methods and systems that have universal, additive and positive effects on organizational performance."

the definition relates to the fact that the best practices that the organization employs, each will add to the previous, thus compounding the resulting performance of the organization. This model is based on universalism. The assumption behind this model is -  a set of practices aimed at high commitment or high performance will benefit whole organization regardless of context.

Elements of Best Practices (Pfeffer - 1998):

• Employment security / Job security
• Sophisticated selection / Selective thinking
• Team Work and decentralization
• High wages linked to organizational performance
• Extensive training
• Narrow status differential
• Communication and employee involvement

Patterson's Model of HRM:

HRM practices can improve organizational performance by:

• Increasing employee skills and abilities
• Prompting positive attitudes and increasing motivation
• Providing employees with extended responsibilities, so that they can make full use of their skills and abilities

Above factors provide a basis for determining 'good' or 'high' performance HRM practices.

Best Fit / Contingency Model:

Argument - "HR strategies become more efficient when it is linked to its surrounding context or environment of the business."

There are two elements in this model:

1. External Fit - the fit is linked to operation strategy / marketing strategy etc. that is, the competitive strategy of overall business. Schuler and Jackson (1987) developed the connection between competitive advantage, employee behaviors and practices.
2. Internal Fit - HR policies and practices must be coherent. Policies which work in opposite direction should be avoided. For example, encouraging team work but rewarding team work.

Models of Human Resource Management (Part I)

The Human Resource Management model contain all human resource activities. When these activities are discharged effectively, they will result in a competent and willing workforce who will help realize organizational goals. There is another variable in HR models - environment. It may be stated that the Human Resource function does not operate in vacuum. It is influenced by several internal and external forces like economic, technological, political, legal, organizational and professional conditions.

• They provide an analytical framework for studying HRM ( for example, situational factors, stakeholders, strategic choice levels, competence).
• They legitimize certain HRM practices; a key issue here being the distinctiveness of HRM practices: "It is not the presence of selection or training but a distinctive approach to selection or training that matters."
• They provide a characterization of HRM that establishes variables and relationship to be researched.
• They serve as a heuristic device -  something to help us discover and understand the world of explaining the nature and significance of key HR practices.

Following are major HRM Models:

1. Matching Model of Fombrun, Tichy & Devanna
2. The Harvard Model
3. The Guest Model
4. The Warwick Model
5. The Storay Model
6. Best Practice Model
7. Patterson's Model
8. Best Fit / Contingency Model

Matching Model of Fombrun, Tichy & Devanna:

This model held that HR system and the organizational structure should be managed in a way that is congruent with organizational strategy. Main focus was on the four functions of HRM i.e. selection, appraisal, development and rewards and their inter relatedness.

This is the first and very simple model that serves as a heuristic framework for explaining the nature and significance of the key HR activities. But it is incomplete as it focuses only on four functions and ignores all environmental and contingency factors that impact HR functions.

The Harvard Model:

The harvard model claims to be comprehensive in as much as it seeks to comprise six critical components of HRM. The dimensions included in the model are: stakeholders interests, situational factors, HRM policy choices, HR outcomes and long term consequences.

• The Stakeholders interests recognize the importance of 'trade offs' between the interests of the owner and those of employees. Trade offs also exists among other interest groups. But this is the challenge of HR manager, who needs to balance the interests of all stakeholders.
• The Situational Factors influence management's choice of HR strategy. the contingent factors included in the model include work force characteristics, management philosophy, labour market, task, technology and laws and social values.
• HRM Policy Choices emphasize the management's decisions and actions in terms of HRM can be fully appreciated only if it is recognised that they result from an interaction between constraints and choices. This model outlines four HR Policy areas:
• Employee Influence - delegated levels of authority, responsibility, power etc.
• HR Flows - recruitment, selection, promotion, appraisal, termination etc.
• Reward System - Pay system, motivation etc.
• Work System - design of work and alignment of people
• These HRM policy choices lead to 4 Cs of HR Policy Outcomes, that have to be achieved:
• Commitment
• Congruence
• Competence
• Cost Effectiveness
• Beer et al (1984)  proposed that long term Consequences  both benefits and costs of HR policies should be evaluated at three levels: Individual, Organizational and Societal. These in turn should be analyzed using the 4 Cs.
• The Feedback Loop is the sixth component of the Harvard Model. as was stated above, situational factors influence HRM policy and choices, and are influenced by long-term consequences. Similarly, stakeholders interests influence HRM policy choices, and in turn, are impacted by long-term consequences (see Figure)

Advantage of the Model (Boxall - 1992)

• Incorporates recognition of a range of stakeholders interests.
• Recognize the importance of 'trade offs' either explicitly or implicitly, between the interests of owners and those of employees as well as between various interests groups.
• Widen the context of HRM to include 'employee influence', the organization of work and the associated questions of supervisory style.
• Acknowledges a broad range of contextual influences on management's choice of strategy. suggesting a meshing of both product market and socio-cultural logic.
• Emphasizes strategic choice-it is not driven by situational or environmental determinism.

Offences under Factories Act 1948

Section 92 - GENERAL PENALTY FOR OFFENCES

Contravention of this act	imprisonment for 2 years of Fine upto 1 lakh or both
On continuation of contravention	Rs. 1000 per day, till the contravention is continued
Contravention of chapter IV Pertaining to safety or dangerous operation	not less than 25000 in case of death and not less than 5000 in case of serious injuries

Section 93 - LIABILITY OF OWNER OF PREMISES IN CERTAIN CIRCUMSTANCES

1.       Where in any premises separate buildings are leased to different occupiers for use as separate factories, the owner of the premises shall be responsible for the provision and maintenance of common facilities and services

2.       Where in any premises, independent or self-contained, floors or flats are leased to different occupiers for use as separate factories, the owner of the premises shall be liable as if he were the occupier or manager of a factory, for any contravention of the provisions of this Act

Section 94 - ENHANCED PENALTY AFTER PREVIOUS CONVICTION

Subsequent contravention of some provisions (Under sec. 92) – Imprisonment upto 3 years or fine Rs. 10000 – 2 Lakh or both

Section 95 - PENALTY FOR OBSTRUCTING INSPECTOR

Imprisonment upto 6 months or fine upto Rs. 10000 or both

Section 96 - PENALTY FOR WRONGFULLY DISCLOSING RESULTS OF ANALYSIS UNDER SECTION 91

Imprisonment upto 6 months or fine upto Rs. 10000 or both

Section 96A - PENALTY FOR CONTRAVENTION OF THE PROVISIONS OF SECTIONS 41B, 41C AND 41H

·         Imprisonment for 7 years with find upto Rs. 2 Lakh

·         On continuation – Rs. 5000, till contravention continued

·         Imprisonment for 10 years if contravention continues for 1 year

Section 97 - OFFENCES BY WORKERS

For contravention of this act – fine of Rs. 500

Section 98 - PENALTY FOR USING FALSE CERTIFICATE OF FITNESS

Imprisonment for a term which may extend to 2 months or fine of Rs. 1000 or both

Section 99 - PENALTY FOR PERMITTING DOUBLE EMPLOYMENT OF CHILD

Fine of Rs. 1000

Section 107 – APPEALS

The manager of the factory may appeal witin the 30 days of the service of the order

Section 111 - OBLIGATIONS OF WORKERS

1.       Shall not wilfully interfere with or misuse any appliance, convenience or other thing provided in a factory for the purposes of securing the health, safety or welfare of the workers

2.       Shall not wilfully and without reasonable cause do anything likely to endanger himself or others;

3.       Shall not wilfully neglect to make use of any appliance or other thing provided in the factory for the purposes of securing the health or safety of the workers

4.       In case of Contravention – imprisonment upto 3 months  or fine upto Rs. 100 or both

Section 111A - RIGHT OF WORKERS, ETC.

Every worker has right to –

        I.            Obtain from the occupier, information relating to workers' health and safety at work;

      II.            get trained within the factory wherever possible, or, to get himself sponsored by the occupier for getting trained at a training centre or institute, duly approved by the Chief Inspector, where training is imparted for workers' health and safety at work

    III.            represent to the Inspector directly or through his representative in the matter of inadequate provision for protection of his health or safety in the factory

Various Schedules –

Schedule I	List of industries involving hazardous process
Schedule II	Permissible levels of certain chemical substances in work environment
Schedule III	List of Notifiable Diseases

Factories Act - Part II

Section 51 – WEEKLY HOURS

Maximum 48 hours a week for an Adult Worker

Section 51 – WEEKLY HOLIDAYS

1.       No adult worker is allowed to work on the first day (hereinafter referred as “said day” of the week, unless:

a.       He has or will have a whole day holiday – 3 days immediately before or after the said day

b.      The manager of the factory before the said day –

                                                               i.      delivered a notice at the office of the Inspector

                                                             ii.      displayed a notice to that effect in the factory

2.       Notices given under sub-section (1) may be cancelled by a notice delivered at the office of the Inspector and a notice displayed in the factory not later than the day before the said day or the holiday to be cancelled, whichever is earlier.

Section 53 – COMPENSATORY HOLIDAY

a worker who is deprived of any of the weekly holidays for which provision is made in sub-section (1) of  section 52, shall be allowed, within the month in which the holidays were due to him or within the two months immediately following that month, compensatory holidays of equal number to the holidays so lost.

Section 54 – DAILY HOURS

Maximum 9 Hours a day – Adult Worker

Section 55 – INTERVALS FOR REST

Rest of half an hour for each 5 hours work

The Chief Inspector, may, by written order, exempt any factory from the provision, so however that the total number of hours worked by a worker without an interval does not exceed six.

Section 56 – SPREADOVER

Shall not spreadover more than ten and a half hours in any day: Provided that the Chief Inspector may, for reasons to be specified in in writing, increase the spreadover up to twelve hours

Section 57 – NIGHT SHIFTS

Section 58 - PROHIBITION OF OVERLAPPING SHIFTS

1.       Work shall not be carried on in any factory by means of a system of shifts so arranged that more than one relay of workers is engaged, in work of the same kind at the same time.

2.       The State Government or subject to the control of the State Government, the Chief Inspector, may, by written order and for the reasons specified therein, exempt on such conditions as may be deemed expedient, any factory or class or description of factories or any department or section of a factory or any category or description of workers therein from the provisions of sub-section (1).

Section 59 – EXTRA WAGE FOR OVERTIME

Where a worker works in a factory more than 9 hours in a day or 48 hours in a week entitle for overtime - @ rate of twice his ordinary (Basic + D.A.) rate of wages.

Section 60 – RESTRICTION ON DOUBLE EMPLOYMENT

Not allowed to work in any factory an any day on which he has already been working in any other factory

Section 61 – NOTICE OF PERIODS OF WORK FOR ADULT

Section 62 – REGISTER OF ADULT WORK

1.       The manager of every factory shall maintain a register of adult workers, to be available to the Inspector at all times during working hours, or when any work is being carried on in the factory, showing

a.       The name of each adult worker in the factory;

b.      The nature of his work;

c.       The group, if any, in which he is included;

d.      Where his group works on shifts, the relay to which he is allotted; and

e.      Such other particulars as may be prescribed 

Section 66 – FURTHER RESTRICTION ON EMPLOYMENT OF WOMEN

1.       No woman is allowed to work except between the hours 6.00 AM – 7.00 PM

2.       No exemption in daily hours

3.       No change of shifts except after a weekly holiday

(Provided that the State Government may, by notification in the Official Gazette, in respect of any factory or group or class or description of factories, vary the limits, but no such variation shall authorize the employment of any woman between the hours of 10 P.M. and 5 A.M.)

Section 67 – PROHIBITION OF EMPLOYMENT OF YOUNG CHILDREN

Child below 14 Years is not allowed to work in a factory

Section 68 – NON-ADULT WORKER TO CARRY TOKENS

1.       Adolescent should carry a certificate of fitness

2.       He should carry the token at his work , which is given in reference to above said certificate

Section 69 – CERTIFICATES OF FITNESS

1.       Given by a Certifying Surgeon on the application of any young person or his parents or guardian accompanied by a document signed by the manager of a factory

2.       Shall be valid only for a period of twelve months from the date of issuance

Section 71 – WORKING HOURS FOR CHILDREN

No child is permitted to work in any factory for more than 4 and a half hour in a day or during the night (10.00 PM – 6.00 AM)

No female child is allowed to work in any factory except between 8.00 AM – 7.00 PM

The period of work of all children employed in a factory shall be limited to two shifts which shall not overlap or spread over more than five hours each; and each child shall be employed in only one of the relays which shall not, except with the previous permission in writing of the Chief Inspector, be changed more frequently than once in a period of thirty days.

Section 79 – ANNUAL LEAVES WITH WAGES

Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year leave with wages for a no. of days calculated @ rate of –

1.       Adult – 1 day for every 20 days

2.       Child – 1 day for every 15 days

3.       Female – maternity leave, not exceeding 12 weeks

(The leave admissible under this sub-section shall be exclusive of all holidays whether occurring during or at either end of the period of leave.)

Section 80 – WAGES DURING LEAVE PERIOD

Entitled to wages @ equal to daily average of his total full time earnings for the days on which he actually worked during the month immediately preceding his leave