Collective bargaining is process of joint decision making and basically represents a democratic way of life in industry. It is the process of negotiation between firm’s and workers’ representatives for the purpose of establishing mutually agreeable conditions of employment. Collective bargaining is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation. Collective bargaining involves discussions and negotiations between two groups as to the terms and conditions of employment. It is called ‘collective’ because both the employer and the employee act as a group rather than as individuals. It is known as ‘bargaining’ because the method of reaching an agreement involves proposals and counter proposals, offers and counter offers and other negotiations There are three important theories of collective bargaining which have been discussed as follows: 1. The Marketing Concept and the Agreement as a Contract The marketing concept views Continue reading
Human Resource Concepts
Elton Mayo’s Hawthorne Experiment and It’s Contributions to Management
The term “Hawthorne” is a term used within several behavioral management theories and is originally derived from the western electric company’s large factory complex named Hawthorne works. Starting in 1905 and operating until 1983, Hawthorne works had 45,000 employees and it produced a wide variety of consumer products, including telephone equipment, refrigerators and electric fans. As a result, Hawthorne works is well-known for its enormous output of telephone equipment and most importantly for its industrial experiments and studies carried out. Hawthorne Experiment by Elton Mayo In 1927, a group of researchers led by Elton Mayo and Fritz Roethlisberger of the Harvard Business School were invited to join in the studies at the Hawthorne Works of Western Electric Company, Chicago. The experiment lasted up to 1932. The Hawthorne Experiment brought out that the productivity of the employees is not the function of only physical conditions of work and money wages paid Continue reading
Case Study on New Performance Appraisal System at Xerox
In the mid-1980s Xerox corporation was faced with a problem–its performance appraisal system was not working. Rather than motivating the employees, its system was leaving them discouraged and disgruntled. Xerox recognized this problem and developed a new system to eliminate it. Old Performance Appraisal System The original system used by Xerox encompassed seven main principles: The appraisal occurred once a year. It required employees to document their accomplishments. The manager would assess these accomplishments in writing and assign numerical ratings. The appraisal included a summary written appraisal and a rating from 1 (unsatisfactory) to 5 (exceptional). The ratings were on a forced distribution, controlled at the 3 level or below. Merit increases were tied to the summary rating level. Merit increase information and performance appraisals occurred in one session. This system resulted in inequitable ratings and was cited by employees as a major source of dissatisfaction. In fact, in 1983, Continue reading
Determinants of Job Satisfaction
Job satisfaction is a psychological aspect. It is an expression of feeling about the job. Job satisfaction is an attitude. It is a permanent impression formed about the job. Employees interact with people and other resources while working with the job. In the process, they experience positive or negative feelings about the job context and content. The concept of job satisfaction has gained importance ever since the human relations approach has become popular. Most Important Determinants of Job Satisfaction Job satisfaction is intangible and it is multi-variable. A number of factors influence job satisfaction of employees. They can be classified into two categories. They are organizational and personal variables. They are discussed below: Organizational Determinants: Employees spend most of the time in organizations. Therefore, a number of organizational factors determine job satisfaction of the employees. Organizations can increase job satisfaction by organizing and managing the organizational factors. Let us learn Continue reading
What is Workforce Diversity?
Workforce diversity is when a job hires people that are different or similar and puts them in the same workplace to work together. It’s basically the bringing together of different people to one workplace. Some things that would make them similar or different could be their age, background, physical abilities, disabilities, race, religion, gender, and sexual orientation. Workforce diversity is important because it lets companies grow and become more competitive. With workforce diversity comes many great perks and benefits such as creativity, innovation, and a great reputation. Having diversity in the workplace gives a company a lot of great and different types of talent. With this it makes the company more profitable and even more successful. With diversity in the workplace it can be a way to solve issues and customer needs many different ways. Diversity cause many new ideas for companies. With diversity a company gets local connections, different Continue reading
Edgar Schein’s Career Anchors
Edgar Schein, one of the founders in the field in modern organizational psychology, pointed out that, every one of us has a particular orientation towards work. As a result of which, we all approach our work with a set of priority and certain values. This concept is known as ‘Career Anchors’. It represents one’s combination of perceived career competence and includes talents, motives, values and attitudes that give stability and direction to a person’s career. It is regarded as the ‘motivator’ or ‘driver’ of that person. Edgar Schein’s Career Anchors depicts one’s highest priority needs and the factors of work lives one may not be willing to give up. Many people are not really clear about their need and competencies and make an inappropriate career choice, that lead to dissatisfaction and frustration at work. Knowing their Career Anchor properly, people develop sufficient insight to make intelligent and appropriate career choices. Continue reading