Q.1. What does the term IR means?

Industrial relations are used to denote the collective relationships between management and the workers. Traditionally, the term industrial relations is used to cover such aspects of industrial life as trade unionism, collective bargaining, workers participation in management, discipline and grievance handling, industrial disputes and interpretation of labor laws and rules and code of conduct. In the words of Lester, "Industrial relations involve attempts at arriving at solutions between the conflicting objectives and values; between the profit motive and social gain; between discipline and freedom, between authority and industrial democracy; between bargaining and co-operation; and between conflicting interests of the individual, the group and the community. The industrial relations are beyond of the two participants- labor and management, and also have the economic and social goals to which the State addresses itself. To regulate these relations in socially desirable channels is a function, which the State is in the best position to perform. In fact, industrial relation encompasses all such factors that influence behavior of people at work. A few such important factors are below: Institution: It includes government, employers, trade unions, union federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems. Characters: It aims to study the role of workers unions and employers federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor court, tribunal etc.

 Methods: Methods focus on collective bargaining, workers participation in the industrial relations schemes, discipline procedure, grievance redressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protests through methods like revisions of existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc. Contents: It includes matter pertaining to employment conditions like pay, hours of works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc., laws relating to such activities, regulations governing labor welfare, social security, industrial relations, issues concerning with workers participation in management, collective bargaining, etc.

Q.2. Discuss the importance of IR in industrial life? The industrial relations are key to the progress and success. The importance of industrial relation is discussed as under:

Uninterrupted production: The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption.

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 promoting co-operation and increasing production.

High morale: Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they

should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results.

Mental Revolution: The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employers authority. It will naturally have impact on production because they recognize the interest of each other.

Reduced Wastage : Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected. Thus, it is evident that good industrial relations are the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.

Q.3.Briefly discuss the objectives and goals of trade union? How CBA is elected in case there is more then one union in organizations? A trade union is an organization of employees formed on a continuous basis for the purpose of securing diverse range of benefits. It is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives. Trade unions are voluntary associations formed for the pursuit of protecting the common interests of its members and also promote welfare. They protect the economic, political and social interests of their members. Objectives and goals: Thus, a trade union can be seen as a group of employees in a particular sector, whose aims and goals are to negotiate with employers over pay, job security, working hours, etc, using the collective power of its members. In general, a union is there to represent the interests of its members, and may even engage in political activity where legislation affects their members. Trade unions are formed to protect and promote the interests of their members. Their primary function is to protect the interests of workers against discrimination and unfair labor practices. Trade unions are formed to achieve the following objectives: Representation: Trade unions represent individual workers when they have a problem at work. If an employee feels he is being unfairly treated, he can ask the union representative to help sort out the difficulty with the manager or employer. Unions also offer their members legal representation. Normally this is to help people get financial compensation for work-related injuries or to assist people who have to take their employer to court. Negotiation: Negotiation is where union representatives, discuss with management, the issues which affect people working in an organization. There may be a difference of opinion between management and union members. Trade unions negotiate with the employers to find out a solution to these differences. Pay, working hours, holidays and changes to working practices are the sorts of issues that are negotiated. In many workplaces there is a formal agreement between the union and the company which states that the union has the right to negotiate with the employer. In these organizations, unions are said to be recognized for collective bargaining purposes.

Voice in decisions affecting workers: The economic security of employees is determined not only by the level of wages and duration of their employment, but also by the managements personal policies which include selection of employees for lay offs, retrenchment, promotion and transfer. These policies directly affect workers. The evaluation criteria for such decisions may not be fair. So, the intervention of unions in such decision making is a way through which workers can have their say in the decision making to safeguard their interests.

Member services During the last few years, trade unions have increased the range of services they offer their members. These include:

Education and training - Most unions run training courses for their members on employment rights, health and safety and other issues. Some unions also help members who have left school with little education by offering courses on basic skills and courses leading to professional qualifications.

Legal assistance - As well as offering legal advice on employment issues, some unions give help with personal matters, like housing, wills and debt.

Financial discounts - People can get discounts on mortgages, insurance and loans from unions.

Welfare benefits - One of the earliest functions of trade unions was to look after members who hit hard times. Some of the older unions offer financial help to their members when they are sick or unemployed. Thus the goals and objectives to protect and promote all kinds of interests economic, political and social-of its members. The dominant interest with which a union is concerned is, however, economic. It achieves its objectives through collective action and group effort. Negotiations and collective bargaining are the tools for accomplishing objectives.
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Collective Bargaining Agent in case more than one registered trade union: Where there are more than one registered trade unions in an establishment or group of establishment, the Registrar of trade unions shall upon application by one-fifth of the total number of workmen employed in such establishment or group of establishment or by the employer or by the Government, hold within 15 days a secret ballot to determine a collective bargaining agent whereas in the case of large establishment having its branches in more than one town, hold the secret ballot within 30 days from the making application. Those who are eligible to vote are: with at least 3 months of service members of a trade union contesting the elections and registered as voters in the voters list.

A trade union cant be certified as CBA unless the votes received by it are at least 33% of total employed workers in an establishment. If no union receives at least 33 of total votes (of employed workers), a second election will be held between two unions, who have secured highest number of votes. Thus, the union that wins this run-off election will be certified as CBA. The CBA engages in collective bargaining with employer on any matter of employment, non-employment, terms of employment and working conditions. CBA also represents workers in any proceedings, gives notice of strike and nominates workers on boards of Provident Fund and Workers Participation Fund in an establishment.

Q. 4. What is collective bargaining process? Collective bargaining generally includes negotiations between the two parties (employees representatives and employers representatives). Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment. Often employees are represented in the bargaining by a union or other labor organization. The result of collective bargaining procedure is called the collective bargaining agreement (CBA).
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Collective agreements may be in the form of procedural agreements or substantive agreements. Procedural agreements deal with the relationship between workers and management and the procedures to be adopted for resolving individual or group disputes. This will normally include procedures in respect of individual grievances, disputes and discipline. Frequently, procedural agreements are put into the company rule book which provides information on the overall terms and conditions of employment and codes of behavior. A substantive agreement deals with specific issues, such as basic pay, overtime premiums, bonus arrangements, holiday entitlements, hours of work, etc. In many companies, agreements have a fixed time scale and a collective bargaining process will review the procedural agreement when negotiations take place on pay and conditions of employment. The collective bargaining process comprises of five core steps as shown in the Figure (1): Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employers representatives and the union examine their own situation in order to develop the issues that they believe will be most important. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be
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described as brainstorming. The exchange of messages takes place and opinion of both the parties is sought. Bargain: Negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when what ifs and supposals are set forth and the drafting of agreements take place. Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.

Figure (1)

Q.5. Describe the role of arbitrator in arbitration process? The role of an arbitrator is to hear both sides of a conflict and decide the outcome. An arbitrator should be completely impartial to either side to ensure fairness. This person is considered neutral to the disagreement and is usually not associated to either party in any way. Arbitrators are unbiased 3rd parties who serve as mediators in disputes. In the event of failure of the conciliation, the conciliator shall try to persuade the parties to agree to refer the dispute to an arbitrator. If the parties agree, they hall make a request in writing for reference of dispute to an arbitrator agreed upon them. In most cases it is an attorney or a retired judge or a person from the panel maintained by a provincial government or any other person agreed upon by the parties. The arbitrator shall give his award within 30 days from the date on which the dispute is referred to him or such further period as may be agreed upon by the parties to the dispute. The arbitrator shall forward copy of the award to the parties and to the provincial government to be published in the official gazette. The ward of the arbitrator shall be final and no appeal shall lie against it. It shall be valid for a period not exceeding two years or as may be fixed by the arbitrator. Key role of the Arbitrator: Promote voluntarism Ensure industrial peace Impose public values on the workplace Arbitrator acts as: Mediator Industrial Relation policy maker Adjudicator

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Q.6. What are the advantages of offering benefits instead of plain salary? Differentiate between legally required benefits and voluntary benefits? Employee benefits encompass a broad range of benefitsother than salarythat companies provide to their employees. Some of these benefits, such as workers' compensation, social security, and unemployment insurance, are required by law. The majority of benefits offered to employees, however, are bestowed at the discretion of the business owner. Such benefits, which are commonly called "fringe" benefits, range from such major expenditures as paid holidays, health insurance, paid vacations, employee stock ownership plans (ESOPs), and profit sharing to more modest "extras" like bestowing performance awards and prizes, providing an employee lunchroom, or paying for a company picnic. Employee benefits are an indirect means of compensating workers, but they can be quite important in fostering economic security and stability within the work force. Employee benefits can be most easily divided into two categories: mandatory and voluntary(optional). Mandatory Benefits: Mandatory benefits are required by law. They serve to provide economic security for employees (and their dependents) who have ceased working because of retirement, unemployment, disability, poor health, or other factors. Notable mandatory benefits include: Medicaid; basic Medicare; Public Assistance; Social Security retirement; Social Security disability; Supplemental Security income; unemployment insurance; and workers compensation.

Voluntary Benefits: Voluntary benefits are those optional benefits an employer has the option of providing. These optional, or supplementary, benefits include such major compensation areas as insurance and tax-qualified plans of deferred compensation. Such compensation programs are designed for the exclusive benefit of employees and their beneficiaries and are subject to specific Internal Revenue Service (IRS) regulations. Primary deferred compensation plans include: 1) Pension plansestablished and maintained by employers and paid out to employees over a period of years after retirement; 2) Annuity planspaid out of annuity or insurance contracts; 3) Stock bonus plans arrangement wherein employees are given stock in the company and receive
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money from appreciation in the value of shares and/or the dividends or income from that stock; 4) Profit-sharing programsplan in which business profits earned by the employer are shared with employees; 5) insurance plansoption that allows employees to deduct a portion of their pre-tax salary and invest it in a profit-sharing, fixed contribution, or stock bonus plan. These benefits are handled in a variety of ways under the tax code. Some are fully taxable, but others are tax-preferred, tax-exempt, or tax-deferred, meaning that taxes are not incurred on the benefit until it is used. The benefits serve many of the same basic functions as mandatory benefits, but also include perquisitesknown as "perks"only tangentially related to actual business. These perks can range from country club membership to use of a company car. Fully taxable optional benefits: These include cash bonuses and awards; non-qualifying stock bonuses; non qualifying stock ownership and profit-sharing programs; and severance pay. Tax-preferred benefits include life insurance; long-term disability insurance; and sickness and accident insurance.

Tax-deferred benefits: These include retirement plans; deferred profit-sharing plans; employee stock ownership plans (ESOPs); most types of qualified pension plans; stock bonus plans; and thrift savings plans.

Tax-exempted benefits:

These offer include cafeteria facilities and meals; dental and vision insurance; dependent care; flexible spending accounts; free or discount club memberships; health insurance for employees and retirees; legal assistance; free parking or parking subsidies; supplementary Medicare premiums; tuition reimbursement; and use of company car. In addition, most companies offer time-oriented compensation packages that encompass paid vacations and holidays; paid sick days; flexible shifts; maternity and paternity leave; bereavement leave; jury duty; overtime; paid lunch; and sabbaticals. These time-oriented benefits, while optional, are among the most popular and widely used of the various non-salary compensation options. Indeed, while salary considerations remain paramount for many workers, an attractive benefits package can be a major factor when a prospective employee is weighing his or her options.
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INCOME PROTECTION BENEFITS Indeed, a chief role of employee benefits is to provide various types of income protection to groups of workers. Five principal types of income protection delivered by benefits are as under: Disability Benefits: Benefits that provide disability income replacement include programs such as Social Security and worker compensation. The bulk of these benefits are mandatory, although numerous supplementary plans, most of which are taxfavored, exist. Most organizations seek to assemble a disability package that will provide an adequate safety net, yet not act as a disincentive to return to work. Another disability-related benefit incentive is sick pay, although companies handle this category in a variety of ways. Some organizations have instituted policies that provide cash awards for unused sick days at the end of the year. Others opt to combine separate leave policies for vacation, illness, and "personal time" into a single policy for paid time off. Employers may vary the quality of their disability package with different co-payment options, limits on payments for voluntary coverage, and extended coverage for health insurance, life insurance, and medical benefits related to the disability. Medical Benefits: Medical expense reimbursements are typically one of the most expensive and important elements of a company's compensation package. The two primary types of voluntary medical coverage options are fee-for-service plans and prepaid plans. Under traditional fee-for-service plans, the insurer pays the insured directly for any hospital or physician costs for which the insured is covered. Under a prepaid plan, insurance companies arrange to pay health care providers for any service for which an enrollee has coverage. Companies have many options that they can pursue in shaping their medical benefits packages. Indeed, a dizzying array of co-insurance, co-payment, and coverage limit options are available today. Retirement Benefit: Companies provide retirement-related employee benefits through three avenues: Social Security, pension plans, and individual savings. The Social Security system is a federal government program paid for by a tax on earnings; this tax is shared equally by both employee and employer. The
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system, which is administered primarily through the Social Security Administration, provides payments to qualified individuals; it is designed to defray income lost by people as a result of old age, unemployment, or sickness. Pension plans are primarily financed by employers. The two major categories of pension funds are defined benefit and defined contribution. Under the former arrangement, workers are assured a specified level of regular payments upon retirement, and the company is responsible for managing the account. In contrast, defined contribution plans utilize such savings techniques as money purchase plans, stock ownership plans, and profit sharing. Companies make regular contributions to workers' accounts through those different instruments, and may also integrate employee contributions. The beneficiary simply receives the value of the contributions, with interest, at retirement. The third type of retirement benefit offered by many employers is the supplementary individual savings plan. These plans include various taxfavored savings and investment options. Employers may also provide retirement benefits such as retirement counseling, credit unions, investment counseling, and sponsorship of retiree clubs and organizations. Unemployment Benefits: Many employers offer some form of protection against termination as a benefit to employees. This is due in part to the fact that termination benefits are required under various circumstances by collective bargaining agreements and state and federal laws. A common unemployment benefit is severance pay. Under this arrangement, a worker whose employment is terminated may be compensated financially with a lump sum or a series of payments. Length of employment is generally an important factor in determining severance pay. It is important to note, however, that an employee who is discharged because of legitimate misconduct is not entitled to receive unemployment benefits. Some industries provide supplemental unemployment pay plans. These are employer-funded accounts designed to ensure adequate and regular payments to workers, usually members of labor unions, during periods of inactivity. Other companies, meanwhile, provide placement assistance to workers who have been laid off.

Survivor Benefits: Like disability compensation, benefits for the survivors of deceased employees are comprised primarily of mandatory Social Security and
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workers compensation benefits. Eligibility for these benefits is determined by such factors as age, marital status, and parental responsibilities. In addition, a plethora of different privately financed benefit packages are available; many of these enjoy favored tax status. Most plans are set up to make payments to a beneficiary designated by the employee. Payment levels are usually contingent on the cause of death. For example, a worker killed while on the job would likely receive much more than an employee who died at home or on vacation. Different mandatory and voluntary elements of each of these categories are typically combined to deliver a benefits package to a group of workers that complements the resources and goals of the organization supplying the benefits.

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Q.7. Grievances on part of industrial life if not properly handled result in poor performances. Describe effective ways of handling grievances? Maintaining quality of work life for its employees is an important concern for the any organization. The grievance handling procedure of the organization can affect the harmonious environment of the organization. The grievances of the employees are related to the contract, work rule or regulation, policy or procedure, health and safety regulation, past practice, changing the cultural norms unilaterally, individual victimization, wage, bonus, etc. Here, the attitude on the part of management in their effort to understand the problems of employees and resolve the issues amicably have better probability to maintain a culture of high performance. Managers must be educated about the importance of the grievance process and their role in maintaining favorable relations with the union. Effective grievance handling is an essential part of cultivating good employee relations and running a fair, successful, and productive workplace. Positive labor relations are two-way street both sides must give a little and try to work together. Relationship building is key to successful labor relations. Effective ways of handling grievances: The management should take care of following aspects to develop a culture of trust and confidence upon the employees. 1. Always ensure that the managers involved in the grievance handling procedures have a quiet place to meet with the complainant devoting adequate time to the complainant. Grievances are preferably to be settled informally at the level of the employee's immediate supervisor. Try the level best to involve team members to resolve the crisis at unit level itself. Avoid as far as possible the union involvement in conflict resolution situation process. Follow documentation the procedures, of all necessary steps taken to resolve the problem/complaint. 2. Manage the grievances. Be aware of the staff member's potential concerns to the possible repercussions of raising a grievance. Listen for the main point of arguments and any possible avenue to resolve the grievance. 3. Explain manager's role, the policy and the procedures clearly in the grievance handling procedure. Fully explaining the situation to the employee to eliminate any misunderstanding and promote better acceptance of the situation complained of. Use a positive, friendly ways to resolve the crisis than punitive steps, which disturb the system. Be aware of the limits of authority of the person who involved in the grievance handling procedures. If the manager feels that he/she is not the appropriate person (senior manager) to deal with the issue refer the complainant to the appropriate person as soon as possible.

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4. Try to let employee present their issues without prejudging or commenting. Remain calm, cool, collected during the course of the meeting. Always focus on the subject of the grievance than allied issues. 5. Never make use of allegations against personalities. Don't become angry, belligerent, or hostile during grievance handling procedure. Listen and respond sensitively to any distress exhibited by the employees. Eliminating the source of the irritation or discomfort being complained of. 6. Reassure them that the managers will be acting impartially and that your hope is to resolve the matter if possible. Ensure effective, sensitive and confidential communication between all involved. 7. The investigator or decision maker acts impartially, which means they must exclude themselves if there is any bias or conflict of interest. All parties are heard and those who have had complaints made against others are given an opportunity to respond. . Ensuring that there is proper investigation of the facts and figures related the problem under concern. Consider all relevant information in the investigation process. Try to get a better idea of whether the alleged discrimination or harassment happened or didn't happen. Tell them exactly what they are supposed to have done, to whom and explain why this may be seen as discrimination/harassment or as inappropriate. 8. Try to look upon the problem on different angles for appropriate understanding. Ask the staff member their preferred resolution option, although it is important to make it clear that this may not be a possible outcome. 9. Don't "horse trade" or swap one grievance for another (where the union wins one, management wins one). Each case should be decided on its merits. Avoid usage of verbosisms like "it will be taken care of." 10. Take all possible steps to ensure that no victimization occurs as a result of the grievance being raised. Conclusion To a great extend the aggravation of industrial problems depends on manager's approaches and attitude in effective handling of employees grievances. Care should be taken in the way managers approaches the problem and perceiving the pros and cons of the situation. The conflict management approaches include the win-win strategy that help in the healthy organizational practices and which reflects the strong organizational culture. The cooperation from both parties is the pre-requisite to handle the problem and effective settlement of the grievances. Conscious use of professional self can help managers in the conflict handling situations grievance redressal process.

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Q.8. Give an account of common causes of organizational stress? What techniques are generally used for stress management? Job stress in organizations is widespread. Excessive job stress can adversely affect the emotional and physical health of workers. The result is decreased productivity, less satisfied, and less healthy workers. Definition of Stress Stress is an imprecise term. It is usually defined in terms of the internal and external conditions that create stressful situations, and the symptoms that people experience when they are stressed. So there is a potential for stress when an environmental situation is perceived as presenting a demand that threatens to exceed the person's capabilities and resources for meeting it, under conditions where he expects a substantial differential in the rewards and costs from meeting the demand versus not meeting it. Level of stress depends on self-perceived abilities and self-confidence. Stress is correlated with a person's fear of failure. Arnold and Feldman (1986) define stress as "the reactions of individuals to new or threatening factors in their work environment." (p. 459) Since our work environments often contain new situations, this definition suggests that stress in inevitable. This definition also highlights the fact that reactions to stressful situations are individualized, and can result in emotional, perceptual, behavioral, and physiological changes. There is no difference between good stress and bad stress. They are both created by thinking about the future. When anxiety finds an outlet, we say that the stress was motivating; when it doesn't, we call it debilitating. Stress itself is not necessarily bad. The term stress can be considered neutral with the words distress and eustress used for designating bad and good effects. Stress levels that exceed an optimum level result in decreased performance and eventual burnout. Stress levels below a minimum level result in decreased performance and "rust-out". Causes of Stress Stressors can be divided into those that arise from within an individual (internal), and those that are attributable to the environment (external). Internal conflicts, nonspecific fears, fears of inadequacy, and guilt feelings are examples of stressors that do not depend on the environment. Internal sources of stress can arise from an individual's perceptions of an environmental threat, even if no such danger actually exists. Environmental stressors are external conditions beyond an individual's control. Work performance can be seriously impaired by external stressors. There are many aspects of organizational life that can become external stressors. These
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include issues of structure, management's use of authority, monotony, a lack of opportunity for advancement, excessive responsibilities, ambiguous demands, value conflicts, and unrealistic work loads. A person's non-working life (e.g., family, friends, health, and financial situations) can also contain stressors that negatively impact job performance. Many situations in organizational life can be stressful. These include: 1) problems with the physical environment, such as poor lighting or excessive nose, 2) problems with the quality of work such, as lack of diversity, an excessive pace, or too little work, 3) role ambiguities or conflicts in responsibilities, 4) relationships with supervisors, peers, and subordinates, and 5) career development stressors, such as lack of job security, perceived obsolescence, and inadequate advancement. Adverse working conditions, such as excessive noise, extreme temperatures, or overcrowding, can be a source of job-related stress. Overload is frequently created by excessive time pressures, where stress increases as a deadline approaches, and then rapidly subsides. Underload is the result of an insufficient quantity, or an inadequate variety of work. Both overload and underload can result in low selfesteem and stress related symptoms, however, underload has also been associated with passivity and general feelings of apathy. Poor interpersonal relationships are also a common source of stress in organizations. Three types of interpersonal relationships that can evoke a stress reaction: 1) too much prolonged contact with other people, 2) too much contact with people from other departments, and 3) an unfriendly or hostile organizational climate. Personal factors are often a source of stress. These include career related concerns, such as job security and advancement, as well as financial and family concerns. Individuals with high self-esteem and a tolerance for ambiguity are less prone to stress-related illnesses. There is also considerable evidence that a person's susceptibility to stress is dependent on their personality types. Type A personalities (those that seek out fast-paced, challenging situations) often react to stress with hostility and anger, while Type B personalities seem to be have an immunity to the same stressors. Job stress is a consequence of two key ingredients: a high level of job demands and little control over one's work. The five most common causes of worker stress: 1) too much rigidity in how to do a job, 2) substantial cuts in employee benefits, 3) a merger, acquisition, or change of ownership, 4) requiring frequent overtime, and 5) reducing the size of the work force. Over forty percent of the work force experienced one or more stress-related illnesses as a result of these five stressors. Single or divorced employees, union employees, women, and hourly workers reported greater stress levels, and a higher likelihood of "burning out".

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Managing Stress Mangers of organizations have a dual perspective of stress. They need to be aware of their own stress levels, as well as those of their subordinates. Most of the literature focuses on ways of reducing stress. However, a more appropriate approach might be to examine ways of optimizing stress the challenge is to minimize distress and maintain eustress. 1. Uncertainty can lead to distress, but so can certainty or overcontrol. 2. Pressure can lead to distress, but so can limbo or lack of contact. 3. Responsibility can lead to distress, but so can lack of responsibility or insignificance. 4. Performance evaluation can lead to distress, but so can lack of feedback concerning performance. 5. Role ambiguity can lead to distress, but so can job descriptions that constrain individuality. The role of management becomes one of maintaining an appropriate level of stress by providing an optimal environment, and "by doing a good job in areas such as performance planning, role analysis, work redesign/job enrichment, continuing feedback, ecological considerations, and interpersonal skills training." There are essentially three strategies for dealing with stress in organizations: 1. Treat the symptoms, 2. Change the person, and 3. Remove the cause of the stress When a person is already suffering from the effects of stress, the first priority is to treat the symptoms. This includes both the identification of those suffering from excessive stress, as well as providing health-care and psychological counseling services. The second approach is to help individuals build stress management skills to make them less vulnerable to its effects. Examples would be teaching employees time management and relaxation techniques, or suggesting changes to one's diet or exercise. The third approach is to eliminate or reduce the environmental situation that is creating the stress. This would involve reducing environmental stressors such as noise and pollution, or modifying production schedules and work-loads. There are four different employer programs effective in reducing job burn out and half as many stress related illnesses. They are: 1: Supportive work and family policies 2: Effective management communication 3: Health insurance coverage for mental illness and chemical dependency, and
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4: Flexible scheduling of work hours. Managers can take active steps to minimize undesirable stress in themselves and their subordinates. Five managerial actions that can be used to reduce stress in workers. 1. Clarifying task assignments, responsibility, authority, and criteria for performance evaluation. 2. Introducing consideration for people into one's leadership style. 3. Delegating more effectively and increasing individual autonomy where the situation warrants it. 4. Clarifying goals and decision criteria. 5. Setting and enforcing policies for mandatory vacations and reasonable working hours. Other sources of stress in organizations can be changed. One particularly effective way for managers to minimize employee stress is to clarify ambiguities, such as job assignments and responsibilities. Employee stress is directly related to the amount of uncertainty in their tasks, expectations, and roles. Managers can encourage employees to search for more information when they are given unfamiliar tasks, or when they are uncertain of their roles. Another way to reduce employee stress is to incorporate time management techniques, as well as setting realistic time schedules for the completion of projects. There are many other successful ways of dealing with stress. These include stress reduction workshops, tranquilizers, biofeedback, meditation, self-hypnosis, and a variety of other techniques designed to relax an individual. Programs that teach tolerance for ambiguity often report positive effects. One of the most promising is a health maintenance program that stresses the necessity of proper diet, exercise and sleep. Social support systems seem to be extremely effective in preventing or relieving the deleterious effects of stress. There are eight relatively "universal" factors that come into play when evaluating the balance between stress and reward (job satisfaction) in organizations. These are: 1) workload, 2) physical variables, 3) job status, 4) accountability, 5) task variety, 6) human contact, 7) physical challenge, and 8) mental challenge. Each individual has a "comfort zone" for the eight factors. The goal of management is to find the "comfort zone" for each employee that result in optimal performance without producing undesirable side effects. The predicted effect of these imbalances would be stress and a reduction in job satisfaction. The social climate of an organization is often viewed as a cause of stress. There are three factors that need to be examined when evaluating social climate. The first is the degree to which employees identify with or alienate themselves from the
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organization. Employee attitude surveys are an effective method of measuring this factor. Identification can be measured through employees pride in membership, and the extent to which they take initiative and offer constructive suggestions. Alienation can be detected by examining whether members openly criticize the organization, or the degree to which they oppose change. The second factor of organizational climate is the degree to which labor and management are polarized. One of the most effective ways of dealing with this problem is to make all levels of management more visible and accessible. Employees are less likely to criticize management who they see on a regular basis. The goal is to change to perception from "they" (the managers) to "we" (the members of the organization). The third factor is the perceived social norms of the organization. Social norms are abstract organizational values, such as trust, fairness, and respect. Interviews and questionnaires can be used to ascertain organizational social norms, but corrective action involves setting up management programs that clarify organizational values, and may involve replacing certain managers when necessary. Job engineering and job redesign are recent concepts that attempt to minimize jobrelated stress. Job engineering takes into account the values and needs of the worker, as well as the production objectives of the organization. It involves a sixstep cyclical process, beginning with defining the job objectives. This initial step makes statements about "accomplishing something of recognized value." The second step is to define the job conditions. This step specifies the physical, social, and psychological characteristics of the job. The third step is to define the job processes, equipment, and materials. Processes are often presented in a flow chart to show the sequence of operations. The fourth step is to re-evaluate the design from the perspective of the worker, the goal being to achieve a balance between job satisfaction and performance. The fifth step is to test the job design. Employees often experience problems not anticipated by job engineers. The evaluation should look at the "total combination of person, equipment, materials, processes, and surroundings as an integrated whole, and you must measure both productivity and employee satisfaction before you can say the job is well designed." The sixth step involves the ongoing re-evaluation and redesign of the job. Employee attitudes and values change, and new technology provides alternatives to the status quo. Job engineering attempts to be sensitive to these changes, and to modify job descriptions as necessary.

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Q.9. Briefly describe EOB of following: i. Old age grant ii. Old age pension iii. Invalid pension

The scheme is operated under the Employees Old-Age Benefits Act, 1976 and covers establishments employing 5 or more persons. All the employees irrespective of their wage are covered under the scheme. However, contributions by employers and benefits to the workers are payable on minimum rate of wages notified under the Minimum Wages for Unskilled Workers Ordinance, 1962. The scheme is financed through employers contribution at the rate of 5 percent of the minimum wages and insured persons contribution at the rate of 1 percent of the minimum wages. The scheme provides:

Old-Age Pension (on the event of retirement) (1) An insured person shall be entitled to a monthly old-age pension at the rate specified in the Schedule Provided that(a) he is over sixty years of age. or fifty-five years in the case of a woman; and (b) contributions in respect of him were payable for not less than fifteen years: Provided further that the age specified in clause (a) will be reduced by five years in the case of an insured person employed in the occupation of mining for at least ten years immediately preceding retirement. (2-B) An insured person already in receipt of an old-age or invalidity pension, or entitled to an old-age pension under the provisions of sub-section

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(2-A), shall be retitled to a minimum pension at the rate specified in the Schedule. (2-C) An insured person who retires from insurable employment before attaining the age of sixty years (fifty-five years in the case of a woman) but after attaining the age of fifty-five years (fifty years in the case of a woman) shall be entitled to a reduced old-age pension on fulfilling the following conditions, namely:-(a) the Institution is satisfied through documentary evidence that the employer has a definite established retirement age of less than sixty years (fifty-five years in the case of a woman); (b) the employer certifies that the insured person has been retired by him on attaining the age of superannuation; and (c) the contributions in respect of him were payable for the period required under the provisions of this Act. (2-D) The Old-age pension shall be reduced by one-half per cent of the oldage pension specified in the Schedule for each completed month by which the age falls short of sixty years (fifty-five years in the case of a woman) and the minimum old-age pension shall also be reduced in the aforesaid manner in the case of retirement from insurable employment before attaining the age of sixty years (fifty-five years in the case of a woman). (2-E) The reduction in old-age pension specified in sub-section (2-D) shall be for life and shall not be restored on the insured person's attaining the normal pension age. (3) Subject to regulations, the old-age pension shall commence as from the month following that in which the insured person satisfies the condition for entitlement thereto provided that no benefit shall be payable retroactively for more than six months preceding the month in which an application for oldage pension is submitted. (4) Insurable employment of a person for the purposes of this Act shall commence on the date from which the first contribution in respect of him becomes payable. (5) The old-age pension payable to an insured person shall be terminated at

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the end of the month in which the death of such person occurs.

Old-Age Grant (an Insured Person attained superannuation age, but does not posses the minimum threshold for pension) If an insured person, not otherwise entitled to old-age pension, retires from insurable employment after attaining the age of sixty years, or fifty-five years in the case of a woman and a mine worker, and contributions in respect of him were payable for less than fifteen years, but not less than two years, he shall be entitled to an old-age grant payable in a lump-sum equal to his one month's average monthly wages for every completed year of insurable employment or part thereof in excess of six months.

Invalidity Pension (In case of permanent disability)

1. An insured person who sustains invalidity shall be entitled to

an invalidity pension at the rate to be calculated according to the formula set out in he Schedule: Provided that (a) contributions in respect of him were payable for not less than fifteen years; or (b) contributions in respect of him were payable for not less than five years since his entry into insurable employment and for not less than three years during the period of five years preceding the month in which he sustains invalidity; and (c) in either case, he is under sixty years of age or fifty-five years in the case of a woman. 2. Subject to regulations, the invalidity pension shall be payable from the month following that in which the insured person satisfies the conditions for entitlement thereto: Provided that the invalidity pension shall not be payable retroactively for more than six months preceding the month in which an application for the invalidity pension is submitted. 3. The invalidity pension shall be payable so long as invalidity continues: Provided that an insured person who has been in respect of the invalidity pension for not less than five continuous years or attains the age specified in clause (a) of sub-section (1) of Section 22 shall be entitled to the invalidity pension for life.

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Q.10. Explain steps and procedure of holding a domestic enquiry. What are the conditions that justified ex-party enquires? For the smooth functioning of an industry, the defined codes of discipline, contracts of service by awards, agreements and standing orders must be adhered to. In the event of an employee not complying with these codes of conduct, he is liable to face disciplinary actions initiated by the Management according to the Standing Order. This procedure is called Domestic Enquiry and it is conducted in accordance with the standing order/agreements.

CONCEPT:

Domestic enquiry is similar to a trial in a court of law, but while a trial in a court is for crimes done against society, domestic enquiry is conducted for offences committed against the establishment for misconduct, punishable under the standing orders/rules and regulations of the organization. Further, while a trail in a court is in accordance with the criminal procedure code, civil procedure code, evidence act, the domestic enquiry is conducted in terms of what is known as Natural Justice. Also, the enquiry officer while examining the evidence and pronouncing on the guilt is not authorized to penalize the employee. It is only the employer or the appointing authority also known as notified disciplinary authority who can pronounce the penalty. Domestic enquiry is not considered as a legal requirement under the Industrial Disputes Act, or other substantive laws such as the Factories act, Mines Act, etc. but has been provided under the West Pakistan Standing Industrial and Commercial Employment (Standing Order Act) 1968. As a result it is now well-established that such standing orders have the force of law and constitute statutory terms of employment. The case law established over a long period has made it obligatory for the employers to hold a fair and just enquiry to prove the misconduct before awarding any serious punishment. Dismissal of an employee without holding a fair and just domestic enquiry amounts to the violation of the principles of natural justice and is frowned upon by the Labour Courts/Industrial Tribunals and adverse conclusions may be drawn against the employer not holding a domestic enquiry, in so much so that the dismissal without holding a domestic enquiry is deemed to be illegal. DEFINITION OF THE TERM-DOMESTIC ENQUIRY:

Based on the above description of domestic enquiry, we understand that the term domestic enquiry is mainly used to refer to an enquiry into the charges of indiscipline and misconduct by an employee. The term domestic enquiry is commonly used in connection with an enquiry against industrial or commercial

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workers. In common parlance, domestic enquiry means departmental enquiry or domestic tribunal. In such enquiries, the matter is decided by administrative officers and not by courts of law. In cases of alleged indiscipline, it is common for disciplinary authorities in a department or in an industry to appoint an officer or officers to inquire into the allegations against an employee. These enquiries are commonly known as Domestic Enquiries.
1.

PRINCIPLES OF DOMESTIC ENQUIRY:

Rule of Natural Justice must be observed.

2. The delinquent is entitled to a just hearing. 3. He can call for his own evidence.
4. 5. 6.

Cross-examine any witness called by the prosecution. Where rules are laid down, the procedure of such rules must be followed. Disclose to the employee concerned, the documents of records and offer him an opportunity to deal with it.

7. Do not examine any witness in the absence of the employee. 8. The enquiry officer is at liberty to disallow any evidence after recording the reasons in writing. The disciplinary procedure as prescribed in clause (4) of Standing Order 15 of the West Pakistan industrial and Commercial Employment (Standing Orders) Ordinance 1968 involves the following steps: 1. Inform the workman in writing (charge sheet) of the alleged misconduct within one month of the date of misconduct or the date on which the misconduct comes to the notice of the employer. 2. Reasonable opportunity to the workman to explain the circumstances alleged him (normally 7 days are given). 3. Institution of an independent enquiry if the explanation of the workman is not found satisfactory or he fails to submit his explanation within reasonable

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time, and assistance by a worker employed in the establishment during enquiry. 4. An order in writing explicitly stating the reason for dismissal, if found guilty of the alleged misconduct during enquiry. Although, the law does not expressly provide for the communication of the order of dismissal but from the provision of law requiring explicit statement of the reason for dismissal, it follows that the order of dismissal has to be served on the workman concerned. Ex-Parte Enquiries:

While reasonable opportunity should be provided to the employee to defend himself, willful delay of the proceedings on his part on flimsy grounds such as the non-availability of Defence Representative etc., should not be allowed. Where the enquiry is conducted ex-parte, the Presenting Officer will present his case by introducing the witnesses and documents in the usual manner. There will, however, be no cross-examination, since the defence is not present. The Enquiry Officer should also record all such proceedings as detailed above and proceed on merits of the case. Justified Ex-Parte Enquiry:

Subject to conditions that accused is informed of about the charge sheet. The enquiry notice has been sent through registered A/D on the last address of the accused available in the record of the organization. The ex-parte enquiry can be conducted by the enquiry officer. The following points should be ensured for conducting justified ex-parte enquires: 1. If the accused does not appear before the Enquiry Officer at date, time and place so fixed for conducting the enquiry. 2. Where the accused ask for mercy without adducing any evidence in his favour. 3. In case the accused refuses to take part in the enquiry. 4. Where the conduct of the accused amounted to declining to take part. 5. Accused deliberately not participating in enquiry notice and admittedly given chance defence.
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6. Earlier charge sheet was received by accused through post. Then enquiry notice received back with postal remarks that employee had left the home. No new address was provided by the accused employee. Hence, conducting of the ex-parte enquiry, under the circumstances, held justified. 7. The enquiry proceeding can be continued ex-parte if accused refrains from participating the enquiry further. 8. In case the accused has not intimated the employer of his inability to the enquiry because of himself because of circumstances beyond his control to participate in the enquiry, and/or the employer has no knowledge about it, the enquiry conducted ex-parte shall be valid. 9. If the charge sheeted workman withdraws himself from enquiry, the ex-parte enquiry conducted shall be valid. 10. If the accused received enquiry notice but does not attend the enquiry, he does so at his risk and enquiry can be held in his absence. But it is advised that another chance be given to the accused so that he can defend his case. 11. Mere objection to the appointed enquiry officer is an insufficient ground and does not entitle the accused to boycott the enquiry. Ex-parte enquiry held under the circumstances not exceptionable. 12. Accused deliberately not participating in enquiry despite notice and chance to defend his case held ex-parte enquiry lawful.

Q. 11: Write short note on: i. Classification of Workman ii. Strikes and Lockout iii. Retirement

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Classification of Workman:

Workman means any person employed in any industrial or commercial establishment to do any skilled or unskilled manual or clerical work for hire or reward. The classification of the workman is as under: a. b. c. d. e. Permanent Probationer Badli Temporary Apprentice

a. Permanent Workman A permanent workman is a workman who has been engaged on work of permanent nature likely to last for more than nine months and has satisfactorily completed a probationary period of three months in the same or another occupations in the same industrial or commercial establishment, including breaks due to sickness, accidents, leave, lock-out, strike (not being an illegal lock-out or legal strike) or involuntary closure of the establishment and includes a badly who has been employed for continues period of three months or for one hundred and eighty three days during the period of twelve consecutive months. b. Probationer Workman A probationer workman is a workman who is provisionally employed to fill vacancy in a post and has not completed three months service therein. If a permanent employee is employed as a probationer in a higher post he may, at time during the probationary period of three months, be reverted to his old permanent post.

c. Badli Workman A badli workman is a workman who is appointed against the post of a permanent workman or probationer, who is temporarily absent. d. Temporary Workman

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A temporary workman is a workman who has been engaged for work which is of an essentially temporary nature likely to be finished within a period not exceeding nine months. e. Apprentice Workman An apprentice is a person who is an apprentice within the meaning of the Apprenticeship Ordinance 1962. The Apprenticeship Ordinance, 1962 define the apprentice means a person undergoing training through the system of apprenticeship; whereas apprenticeship means a system of training in which an employer undertakes to employ a person and to train him or have him trained systematically in an apprenticeable trade for a period the duration of which has been fixed in advance and in the course of which the apprentice is bound to work in the employers service. Strikes and Lockout

Strikes: Cessation of work by a body of persons employed in any establishment acting in combination or a concerted refusal or refusal under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment. Lockout: The closing of a place of employment or part of such place or the suspension, wholly or partly, of work by an employer, or refusal, absolute or conditional, by an employer to continue to employ any number of workmen employed by him, where such closing, suspension or refusal occur in connection with an industrial dispute or is intended for the purpose of compelling workmen employed to accept certain terms and conditions of or affecting employment. Strike and Lock-out: If no settlement is arrived at as result of conciliation, and the parties do not agree to refer their dispute to an arbitrator, the workmen on a 14 days notice to the employer, may go on strike. Similarly, the employer may declare a

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lock-out on the expiry of period of notice or upon a declaration by the conciliator that conciliation proceedings have failed, whichever is the later. The party raising dispute may at any time, either before or after the commencement of strike or lock-out, apply to the labor court for adjudication of dispute. If a strike or lock-out lasts for more than 30 days, the Federal Government, if it relates to a dispute which the Commission is competent to adjudicate and determine and the Provincial Government, if it relates to any other dispute, may by order in writing, prohibit the strike or lock-out. The Federal Government may, with respect to strike or lock-out relating to a dispute which commission is competent to adjudicate and determine and the Provincial Govt., with the approval of Federal Govt. may by order in writing, prohibit a strike or lock-out at any time before the expiry of 30 days, if it si satisfied that the strike or lock-out is causing hardship to community and is against the national interest. In any case in which the Federal Government or Provincial Government prohibits a strike or lock-out, it shall refer the dispute to the commission or labor court, as the case may be. The Commission or the Labor Court, as the case may be, after hearing both the parties shall make award within 30 days. They may make an interim award. The ward of the Commission or the Labor Court, as the case may be, shall be valid for a period specified in the award but shall not be for more than 2 years. The Federal govt. in case of strike or lock-out regarding an industrial dispute of national importance or an industrial dispute in respect of any of the public utility service may be order in writing, prohibit a strike or lock-out at any time before or after the commencement of strike or lock-out. A strike or lock-out shall be illegal if: It is declared, commenced or continued without giving notice to the other part to a dispute, or before the date of strike or lock-out specified in such a notice, or in contravention of section 36 of IRA 2008. 2. It is declared, commenced or continued by a collective bargaining agent who has not been registered. 3. A lock-out is declared by an employer before the expiry of period of notice of lock-out.
1.

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4.

A settlement or award is in existence on any matter, a lock-out or strike declared on the same issue shall be illegal.

Retirement: Retirement is the point where a person stops employment completely. A person may also semi-retire by reducing work hours. Many people choose to retire when they are eligible for private or public pension benefits, although some are forced to retire when physical conditions don't allow the person to work any more (by illness or accident) or as a result of legislation concerning their position. In most countries, the idea of retirement is of recent origin, being introduced during the 19th and 20th centuries. Previously, low life expectancy and the absence of pension arrangements meant that most workers continued to work until death. Germany was the first country to introduce retirement in the 1880s.

Nowadays most developed countries have systems to provide pensions on retirement in old age, which may be sponsored by employers and/or the state. Today, retirement with a pension is considered a fundamental right of the worker in many societies, and hard ideological, social, cultural and political battles have been fought over whether this is a right. Retirement Age: A person may retire at whatever age they please. However, a country's tax laws and/or state old-age pension rules usually mean that in a given country a certain age is thought of as the "standard" retirement age. The "standard" retirement age varies from country to country but it is generally between 50 and 70 (according to latest statistics, 2011). In some countries this age is different for males and females, although this has recently been challenged in some countries (e.g., Austria), and in some countries the ages are being brought into line. Factors affecting retirement decisions: Many factors affect people's retirement decisions. Social Security clearly plays an important role. In countries around the world, people are much more likely to retire at the early and normal retirement ages of the public pension system (e.g., age 60 years in Pakistan).This pattern cannot be explained by different financial incentives to retire at these ages since
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typically retirement benefits at these ages are approximately actuarially fair; that is, the present value of lifetime pension benefits (pension wealth) conditional on retiring at age a is approximately the same as pension wealth

conditional on retiring one year later at age a+1. Nevertheless a large literature has found that individuals respond significantly to financial incentives relating to retirement (e.g., to discontinuities stemming from the Social Security earnings test or the tax system). Greater wealth tends to lead to earlier retirement, since wealthier individuals can essentially "purchase" additional leisure. Generally the effect of wealth on retirement is difficult to estimate empirically since observing greater wealth at older ages may be the result of increased saving over the working life in anticipation of earlier retirement. A great deal of attention has surrounded how the financial crisis is affecting retirement decisions, with the conventional wisdom saying that fewer people will retire since their savings have been depleted; however recent research suggests that the opposite may happen. A great deal of research has examined the effects of health status and health shocks on retirement. It is widely found that individuals in poor health generally retire earlier than those in better health. Spouse's employment status may also affect one's decision to retire.

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