HRD strategy and Industrial relation

HRD strategy

Attracting and keeping talented and skilled employees is one of the most important challenges organisations face in today’s dynamic business world. No strategy, no matter how well designed, will work unless the organisation has the right people, with the right skills and behaviour, in the right roles, motivated in the right way and supported by the right leaders.

A strategy is the long-term planning that is developed and implemented by top management. These plans are used to seize opportunities and allocate resources. It includes plans to create new products, to acquire other companies, to sell unprofitable aspects of the business, to make shares available, and to enter international markets. A strategy is the long-term planning that is developed and implemented by top management. These plans are used to seize opportunities and allocate resources. It includes plans to create new products, to acquire other companies, to sell unprofitable aspects of the business, to make shares available, and to enter international markets.

Strategic human resource development has multiple benefits, including:

• Increasing extrinsic and intrinsic job satisfaction
• Boosted customer satisfaction
• Effective and efficient use of resources
• Development of a working environment
• Making human resource development activities proactive and impactful
• Equipping human resources to apply theoretical knowledge practically
• Increasing productivity

Develop effective strategy:

Step:1 know your company inside and outside : Before crafting your strategy, know your organization thoroughly. Understand the organization’s goals, current positions, current workforce, and workforce strengths. Ask yourself: “Can your organization’s internal capabilities deliver on its business goals?” To understand the organizational hierarchy and structure, talk to your employees and find out if they are motivated and/or if they have challenges.

Step:2 Craft your HR strategy: Once you have identified potential threats and opportunities, it is time to develop a strategy. The strategy should be simple, yet include all aspects of human resources development. It should also be communicated to individuals from other departments who must be involved in implementing the strategy.

Step:3 Resource analysis: Implementation of most HR strategies require a considerate amount of resources. It is important that you evaluate the company’s current and required monetary and logistic resources. Match the two and check for deviations. If there is a lack of resources, analyze ways to obtain funding.

Step:4 Implementation: Having the resources and having a perfect strategy would not be worth it if action is not taken. Implementation is the most important part of a developing a human resources strategy. Putting your plans into action and seeing the process through to completion is essential.

Step:5 Follow up: Once you start putting your strategy into action, keep track of the progress. Check for changes to be made along the way. Once you notice any change in performance, or deviation from the plan, identify the root cause of the issue and ensure it gets correctly in a timely fashion.

step:6 Corrective action: Identifying the cause is not enough; you need to take corrective action. Create a backup plan to ensure that performance results are back on track with the original strategy. In some cases, a modified strategy may be necessary to reach the desired goal.

Barriers:

• Interdepartmenal conflict
• Limited time, money and the resources
• High resistance due to lack of corporation of bottom line
• The commitment of entire senior management teams
• Fear towards victimization in the wake of failure.
• Economic and market pressures influenced the adoption of strategic HRM
• Presence of an active labour union.

Industrial relation

According to “International Labour Organization (ILO)” Industrial Relations deal with either the relationship between the state and employers and workers organizations or the relation between the occupational organizations themselves”. Industrial relations refers to the relationship that exists between the employer and employees in the day-to-day working of an organization.

Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management).

Actors in the IR System

Employers: Employers possess certain rights with regard to labors. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions.

Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court and the like. It also includes third parties and labor courts.

Objectives of IR

• Raise productivity in the organisation to curb the employee turnover and absenteeism.
• Avoid unnecessary interference of the government, as far as possible and practicable, in the matters of relationship between workers and management.
• Establish industrial democracy based on labour partnership in the sharing of profits and of managerial decisions.
• Socialise industrial activity by involving the government participation as an employer.
• Establish and foster sound relationship between workers and management by safeguarding their interests.
• Avoid industrial conflicts and strikes by developing mutuality among the interests of concerned parties.
• Keep, as far as possible, strikes, lockouts and gheraos at bay by enhancing the economic status of workers.

Importance of IR

Reduction in Industrial Disputes: Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps to promote co-operation and increasing production.

Promote Industrial Democracy: Industrial democracy means the government mandated worker participation at various levels of the organisation with regard to decisions that affect workers. It is mainly the joint consultations, which prepare the way for industrial democracy and cement relationship between workers and management.

Scope :

▪︎Employee-Employer relations : The relationship that pertains between the business owner and the employees of a particular company is known as the employer-employee relationship. To maintain sound relations, the employer must treat the employees fairly and should value their efforts.

Also adopting the various human resource strategies like employee relations program, performance-based promotions and even making the productive employees the stakeholders of the company.

▪︎Group relation: The interactions and communication between the workers belonging to different workgroups are studied under group relations.

▪︎Labour relations: In an organization, the relationship shared by the managers and the workers is termed as labour relations. It includes their behaviour, thoughts, actions and perception against each other.

▪︎Public relations : It is also termed as community relations. The interaction and relationship of the organization (i.e., its owner, management and employees) with the society or external bodies is termed as public relations. For long-term existence in the business, every organization needs to maintain cordial public ties.

Factors affecting of IR

Industrial Relations deal with human behaviour and management of personnel in an organizational setup. The various factors that influence the relationship between the administration and the employees in an organization are as follows:

Individual Behavior: Every person has a different perception, background, skills, knowledge, experience and achievements which influences an individual’s behaviour. The employees, therefore, behave differently in different situations, thus impacting the work environment in the organization.

Organisational structure : The hierarchical structure creates more formal relationships among the employees belonging to different hierarchical levels in an organization. Also, the delegation and execution of decision-making power by the superior influences the industrial relations between the managers and the employees.

Psychological factors: An employee’s attitude and mentality towards the employer and the given task; and the employer’s psychology towards the workers can be positive or negative, which ultimately impacts the employee-employer relationship.

Leadership style: Every manager possesses certain leadership traits and different style to function even in a formal organization. Through his/her formal or informal ways of generating team spirit and motivating the employees, he/she impacts the organization’s industrial relations.

Economic and technical environment: To cope up with the changes in the economic conditions or technology, organizations need to restructure the task of the employees including their work duration, conditions and wages; which leads to a difference in their behaviour, attitude, adapting spirit, etc. towards the organization and its people.

Legal and political environment: The legal framework and political circumstances influence the organization and its industrial relations. It contributes to the framing of rules, rights, authority, powers, roles and responsibilities of all the parties of the organization.

IR update

The Industrial Relations Code, 2019 was introduced in Lok Sabha by the Minister of Labour and Employment, Mr. Santosh Kumar Gangwar, on November 28, 2019. It seeks to replace three labour laws: (i) the Industrial Disputes Act, 1947, (ii) the Trade Unions Act, 1926, and (iii) the Industrial Employment (Standing Orders) Act, 1946.

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