Chapter 6
Employee Relations
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Employee Relations
Employee Relations deals with:
Strengthening relationships between employees by
managing the informal and formal channels of
communication
Administering discipline and grievance handling
procedures
Creating a Team that visibly demonstrates, on and off
the job, the Core Values, Vision and Mission of the
organization
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Employee
Communications
The Employee Handbook
Annual Report, CSR Report
Newsletter, House Magazine
Bulletin Boards
Memos
Intranet, E Mail
Website
Teleconferencing, multimedia
Digital Material e.g. CDs
Company Events e.g. Annual Conference, Family Day,
Long Service and other Awards Ceremonies
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Formal Communications
Meetings
• Provide opportunities for face-to-face
communication
• Facilitate dialogue and promote better personal
relationships
• Allow managers to coordinate activities with their
subordinates, and across divisions
• Task Force meetings aid in accomplishing a
specific goal
• Poorly managed meetings can be a waste of time
and lower a company’s productivity
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Guidelines for Productive
Meetings
Hold a meeting when absolutely necessary
Decide participants group size, cross functional
and hierarchical representation according to the
purpose of the meeting
Distribute a carefully planned agenda with
meeting announcement
Choose appropriate space and time
Close meetings with action plans, and follow up
with a memo
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Retreats
A retreat is an extended meeting in which the company takes
employees to a relaxing, off-work location, where employees mix
business with recreational activities
Retreats aid in:
Determining the Vision, Mission and Mission of the company or for
other activities where a representative company slice is required
Developing strategies, creative ideas for long-term planning
Implementing changes in business practices
Bringing cultural and organizational climate changes
Developing teamwork and interpersonal skills of employees
Fostering mutual appreciation among co-workers
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Informal Communications
Exchange of information amongst employees
without a planned agenda, also called the
grapevine
Informal communications can be a source of
creative ideas
Passes along information that is usually not
available through more formal channels
Examples: amount of upcoming increments; who is in
line for promotion; who has received an outside job
offer; who has gotten a low performance evaluation
and is upset about it
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Managing Informal
Communications
Information may be distorted by rumor,
gossip and misinterpretation, resulting
in poor employee morale and relations
Informal communications should be
monitored by the HR department, and
when necessary, clarify them through
formal channels
An effective way to monitor informal
communications is Management By
Walking Around (MBWA)
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Employee Feedback
Programs
Employee Feedback Programs serve as an
upward communication channel between
employees and management
These programs are designed to improve
management-employee relations by
1. Giving employees a voice in decision making,
strategies and policy formulation
2. Making sure that employees receive due process on
any complaints they lodge against managers,
company’s work conditions, compensation and
benefits.
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Employee Feedback
Programs
The HR department:
Designs and maintains these programs
and surveys
Protects employee confidentiality in
dealing with sensitive personal issues
Ensures that subordinates are not subject
to retaliation from angry managers
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Employee Feedback
Programs
The most common employee feedback
programs are:
1. Employee Attitude Surveys
2. Appeals Procedures
3. Employee Assistance Programs
EAS, and APs resolve work-related
problems EAPS resolve personal
problems interfering with work
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Employee Attitude Surveys
a formal anonymous survey designed to measure
employee likes/dislikes of various aspects of their jobs
Most EAS, ask employees for feedback about:
The work they do
Their supervisors
Their work environment
Their opportunities for advancement
The quality of training they received
The company’s treatment of women and minorities
The fairness of the company’s compensation, benefits,
pay policy
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Employee Attitude Surveys
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Employee Attitude Surveys
To manage EAS, managers should:
Tell employees what they plan to do with the
information they collect
Inform employees about the results of the survey
Use survey data ethically to monitor the state of
employee relations throughout the company
Ensure that the data is not used to fire someone
Protect employee confidentiality
Maintain the integrity of the data by contracting a
third party consultant firm
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Appeals Procedure
Appeals procedures allow employees to voice
their reaction to management practices and to
challenge management decisions
Effective appeals procedures give individual
employees some control over the decisions that
affect them and help to identify managers who
are ineffective or unfair.
Organizations without effective appeals procedures:
Increase their risk of litigation
Incur costly legal fees
Back-pay penalties to employees who use courts
to obtain justice
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Appeals Procedure
Common management actions subject
to appeals are
The allocation of overtime work
Warnings for safety rule violations
The size of merit pay increase
The specification of job duties
The reimbursement for medical expenses filed
by employees or other specific benefits
Performance Evaluations
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Types of Appeals
Procedures
Open-door Speak-up Grievance Panel Union Grievance
• Informal • Informal • Formal • Formal
• Direct access • Prescribes • Used in non-union • Used by employees
to managers specific steps firms working under a union
• Managers for employees • Composed of contract
conduct fair to take a work complaining • Uses arbitrator, a
investigation, problem to employee’s peers and neutral third party, to
and provide management managers other than lead to a final and
answer within a attention the employee’s direct binding decision
time period manager
• Makes • The panel conducts
employees feel an investigation into
secure and the grievance brought
committed before it
• Makes • Typically the last
managers act step in the appeals
less arbitrarily process
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
General Steps
followed in a
Union Grievance
Procedure
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Employee Assistance
Programs
Employee Assistance Programs help employees
cope with personal problems that are interfering
with their job performance
When an employee’s personal problem
interferes with job performance, the individual is
considered a troubled employee
A work-life balance is essential for a satisfied
employee
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Symptoms of a Troubled
Employee
1. Excessive absenteeism patterns: Mondays, Fridays, days before and after
holidays
2. Unexcused absences
3. Frequent absences
4. Tardiness and early departures
5. Altercations with co-workers
6. Causing injuries to other employees through negligence
7. Poor judgment and bad decisions
8. Unusual on-the-job accidents
9. Increased spoilage and breaking of equipment through negligence
10. Involvements with the law – for example, a DWI (driving while intoxicated)
conviction
11. Deteriorating personal appearance
12. Obsessive behavior such as inappropriate discussion of personal problems
with customers
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Employee Assistance
Programs
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Employee Recognition
Programs
Employee Recognition Programs reward
employees for their ideas, performance and
contributions
Such programs are important because
employees are likely to share their ideas for
work improvements when managers give
them credit for their contributions
ERPs enhance employee relations by
communicating that the organization cares
about its employees’ ideas and is willing to
reward them for their efforts.
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Employee Recognition
Programs
Common ERPs are:
1. Suggestion Systems
2. Recognition Awards
3. Performance Awards
ERP’s should be:
• Based on clear, simple, easily understood, pre-
informed criteria
• Transparently implemented
• Publicly announced
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Employee Recognition
1. Company paid holidays
2. Company paid learning visits
3. Dinner, picnic or outing
4. Co insignia items: mugs, T shirts, caps, stationary,
key chains, diaries, etc
5. Plaque, Certificate, etc
6. Special Awards: gold medal, watch, pen,
professional tools, household items, etc
7. Children or family support
8. Higher perks
9. Club or professional memberships
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Rights of Employers and
Employees
HR Department should
Comply with all relevant laws - Industrial Relations
Ordinance, Factory Act, Companies Act, WWF, WPPF,
Pension, Gratuity, Provident Fund, EOBI, SESSI, etc.
Develop and enforce policies that inform
employees of their rights and responsibilities
e.g. Employees Handbook, Manual of Company Policies,
Intranet information system, Employee Assistance Center
Make managers aware of the relevant laws,
employees’ rights and managers’ obligations
to employees
Act as an Employee Advocate, especially
when a supervisor disregards or
misunderstands policy and disciplinary rules
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Categories of Employee
Rights
Statutory Rights Contractual Rights Other Rights
• Protection from discrimination • Employment contract • Ethical treatment
• Safe working conditions • Union contract • Privacy (limited)
• Right to form unions • Implied contracts/employment • Free speech (limited)
policies
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Disciplinary Actions
Discipline refers to an action taken against an
employee who has violated an organizational
rule or whose performance has deteriorated
to the point where corrective action is needed
Generally, disciplinary actions are taken
against employees for two types of conducts:
1. Poor job performance or conduct that negatively
affects an employee’s job performance.
Example: Absenteeism, insubordination, negligence
2. Actions that indicate poor citizenship
Example: fighting on the job, or theft of company property
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Categories of Employee
Misconduct
Minor Violations Serious Violations
• Absenteeism • Drug use at work
• Dress code violation • Theft
• Smoking rule violation • Dishonesty
• Incompetence • Physical assault upon a supervisor
• Safety rule violation • Sabotage of company operations
• Sleeping on the job
• Horseplay
• Tardiness
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Disciplinary Actions
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
The Discipline Process
Step I Step II Step III
Establish Communicate Apply corrective
performance performance actions or
requirements requirements discipline
and work and work when necessary
rules rules
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
4 steps in a Progressive Discipline
Procedure
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Steps for Effective
Disciplinary Sessions
Determine whether an inquiry or discipline is actually
required – isolated incident or a pattern, consult HR
experts, get feedback from several sources
Comply fully with Inquiry/Disciplinary process, ensuring the
rights of the employee
Have clear goals and structure your discussion, developing
concrete steps for employee improvement or disciplinary
recommendations
Ensure two-way, impartial, honest communication
Establish a follow up plan for employee
discipline/improvement with a time frame
For employee improvement, end on a positive note – on
employee’s strengths, convincing him of his ability to
succeed
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Statutory Rights and Due
Diligence for Discipline
Notification – employees have to be forewarned of the
disciplinary consequences of misconduct
Rule Violation should exist
Investigation before the Discipline
Fair Investigation
Proof of Guilt
Absence of Discrimination
Reasonable Penalty
Right to Appeal
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Considerations in Disciplining Employees
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
HUMAN RESOURCE MANAGEMENT
• Employer/Organizational Objectives
• Organizational Structure
• Job Identification, Analysis & Design
• Job Specification (Before Joining) •
• Job Description (After Joining)
• Tasks, Activities, Responsibilities, Accountabilities
• Power (Financial/Administrative) •
• Reporting Structure
• Manpower Planning, Recruitment, Induction
• Training & Development
Employee Objectives JOB Employer Objectives
Work (Scope & Depth) Growth in
Growth in Services
• Goods & Services
• Family & Self
• Customer Satisfaction
• Profession Employee – Employer
EMPLOYEE EMPLOYER • Revenue Generation
• Career Relationship
• Profits
• Security
• Return on Equity (ROE)
• Social Status Performance Compensation &
• Expansion of Business
Management Rewards
• Corporate Reputation
• Performance Evaluation • Salary
• Increments • Benefits
• Bonus • Facilities and Perks
• Incentives • Allowances
• Career Development • Professional, Career, Societal
• Ultimate Potential Recognition
• Internal + External (Mkt) Equity
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Preventing the need for
Discipline with professional
HRM practices
1 Recruitment and selection
Matching career aspirations and career potential
Checking references, background info
Multiple interviews, transparent interviewing and selection process
2 Training and development
Effective Orientation Program
Training and retraining programs to reduce skill gaps and enhance
competencies
Coaching and grooming
Career Planning
3 Human Resource Planning
Match job designing with the best talents of each employee
Job descriptions, work plans and performance standards
developed and communicated effectively to employees
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Preventing the need for
Discipline with professional
HRM practices
4 Performance Appraisal
Reasonable performance appraisal standards and process that are
understood by employees
Frequent feedback by supervisors to employees
Employees development is part of the supervisors appraisal
Transparent, shared and documented appraisal and development
plans
5 Compensation
Pay policies should be perceived to be fair
Appeal mechanism that allows employees the right to challenge
pay and benefits through a legitimate channel
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
Address to Civil Servants and Professionals
Peshawar 1948
“You should not be influenced by any political pressure, by any political
party or individual politician. If you want to raise the prestige and
greatness of Pakistan you must not fall victim to any pressure, but do
your duty fearlessly and honestly.
Governments are formed, governments are defeated, prime ministers come and go, ministers
come and go. Therefore there is a very great responsibility placed on your shoulders.
You should have no hands in supporting this political party or that political party, this political
leader or that political leader – that is not your business. Whichever government is formed
according to the constitution and whoever happens to be the prime minister coming into power
in the ordinary constitutional course, your duty is not only to serve that government loyally,
faithfully, but at the same time fearlessly, maintaining your high reputation, your prestige, your
honor and your integrity. With the determination you will make a great contribution to the
building of Pakistan of our conception and our dream – a glorious state and one of the greatest
nations
HUMAN in the
RESOURCE world.”
MANAGEMENT
Quaid-e-Azam Muhammad Ali Jinnah
Shah M Saad Husain
Thank You
HUMAN RESOURCE MANAGEMENT
Shah M Saad Husain
