Entrepreneurship and Career

21 Tools and Activities of Career Development of Employee

Last Modified: 3 September, 2022 Leave a Comment

A variety of career components exist for use in organizations. HR managers should be familiar with these components for designing career development systems. It develops enriched and more capable employees.

tools and techniques of career development of employees — tools and techniques of the career development system

It has been a tremendous change largely because career opportunities and paths are less structured and predictable.

What are the Techniques for the Career Development of Employees?

These are discussed below classified under various categories:

Self Assessment Tools

These self-assessment tools or activities provide a systematic way to identify capabilities and career preferences.

These include the following:

1. Career Planning Workshops

After self-assessment, individuals may share their feelings with others in career workshops.

Most workshops use experimental excursions in groups too, to educate individuals on how to prepare and follow through on their career strategies.

Workshops are beneficial in helping employees gain self-awareness and insight and learn more about career opportunities in the organization.

2. Career Workbooks

Career workbooks consist of questions and exercises designed to guide individuals to figure out their strengths and weakness, jobs and career opportunities, and necessary steps for reaching their goals.

The workbook illustrates the career path and job qualifications for jobs along with the career ladders.

Individuals Counseling

Individual career counseling is to helps employees discuss their career goals in one on one counseling sessions.

Generally, career counseling is provided by the following taffs members:

A supervisor or line manager.
Human resource staff.
Training or career department.
Professional counselors.
Senior career advisors.

These are one on one discussions between the employee and organizational representatives.

Such counseling sessions can range from brief, informal talks to the annual performance evaluation discussion.

The career counseling process can be viewed in three stages:

Opening and Probing -This stage establishes rapport and determines the employee’s goal for the counseling session.
Undesratninfd and Focusing – This includes providing assistance in self-assessment and establishing career goals and strategies.
Programming – This stage provides support for implementing the career strategy.

For effective counseling active listening must be practiced and positive feedback must be provided to employees.

Information Services

Information services are used by organizations to alert employees to employment opportunities at all levels.

These also may be used to keep ongoing records of employees’ skills, knowledge, work experiences, and preferences.

These records are valuable for pointing out possible candidates for a job opening in the company.

The following systems are used for compiling and communicating career-related information.

1. Job Posting Sytems

Job posting systems are commonly used by companies to inform employees about openings in the organization using Websites, bulletin boards, newsletters, computer systems (e-mail), and other company publications.

They serve as informational and motivational tools.

They imply that the organization is more interested in selecting employees from within the company than outside the organization.

2. Skills Inventories

Skill inventories are company files of data on employees’ skills, abilities, experiences, and education that are often computerized.

They may contain comprehensive records of employees’ work histories, qualifications, education degrees, major fields of study, accomplishments, training completed, skills and knowledge ratings, career objectives, geographical preferences, and anticipated retirement dates.

Skill inventories are created to help organizations know the characteristics of their workforce so they can effectively utilize employees’ skills.

They also reveal shortages of critical skills, which is useful for indicating training needs.

3. Career Ladders and Career Paths

Organizations usually map out steps (job positions) that employees might follow over time.

These steps are used to document possible patterns of job movement, career paths and ladders are helpful for answering employees’ questions about career progression and future job opportunities in the organization.

Typically, the description of a carer path or ladders illustrates a career plan complete with the final goal, intermediate steps, and timetable for reaching the goal.

4. Career Resources Centers

This center consists of a small library set up to distribute career development material such as reference books, learning guides, videos, and self-study tapes.

Universities are well known for having career centers where students can obtain company brochures and videos and career books and gain access to computers to research films on the internet.

Organizational Potential Assessment Process

Assessment programs consist of methods for evaluating employees’ potential for growth and development in the organization.

Organizations want to ensure that there are individuals available who are ready to fill key positions when these positions become vacant.

To this end, many organizations evaluate the potential or promotability of managerial, professional, and technical employees.

This is judged as high potential employees can then be groomed for these positions.

Some important methods under this category are as follows:

1. Potential Ratings

Potential ratings are similar to employee performance evaluations. An employee manager or supervisor typically performs them.

They measure multiple dimensions and include a summary or overall rating of the employee’s potential for advancement.

Potential ratings focus on the future rather than the past or present.

Here the rater judges whether an employee is likely to be successful in jobs requiring skills he may not currently use.

2. Assessment Centers

In an assessment center, small groups of employees perform a variety of exercises while being evaluated by a group of trained assessors.

These centers can be used as part of the employee selection process, but these can also be used to assess the potential for advancement.

These centers conduct various exercises including simulations, role plays, group discussions, tests, and interviews.

These exercises measure relevant skills and aptitudes for given positions. The assessors are typically managers.

The assessors write a detailed report on each assessee and usually make an overall judgment about the assesses promotability.

3. Psychological Assessment

Diagnostic tests and other inventories may be used for self-assessment or with career counseling.

They consist of written tests and questionaries that help individuals determine their vocational interests, personality types, work attitudes, and other personal characteristics that may reveal their career needs and preferences.

4. Promotability Forecasts

Forecasts are used by the organization to make early identification of individuals with exceptionally high career potential.

Once individuals are identified, they are given relevant development experiences to groom, them for higher positions.

5. Succession Planning

Succession planning involves having senior executives periodically review their top executives and those in the next lower level to determine several backups for each senior position.

This is important because it often takes years of grooming to develop effective senior managers.

Organizations need to create pools of candidates with high leadership potential.

Formal succession planning involves an examination of strategic plans and HR forecasts and a review of the data on all potential candidates.

The objective is to identify employees with potential and increase managerial depth as well as promotion from within the company.

Developmental Programmes

Developmental programs consist of skills assessment and training programs that organizations may use to develop their employees for future positions.

What are the components of career development?

Development programs can be internal and run by the human resource staff or be offered externally in the form of seminars and workshops.

These are as follows:

1. Mentoring

Mentoring is important from both a life development and a career development perspective.

Mentoring is a developmentally printed relationship between senior and junior members.

It generally involves advising, role modeling, sharing contacts, and giving general support.

The mentor provides the employee with career support by opening doors, teaching the ropes of the organization, creating potential opportunities to demonstrate competence, enhancing visibility, and ensuring that the is challenging work.

2. Coaching

Employee coaching consists of ongoing, sometimes spontaneous, meetings between managers and their employees to discuss the employee’s career goals and development.

Working with employees to chart and implement their career goals enhances productivity and can spur management’s own advancement.

3. Job Rotation

Job rotation involves assigning employees to various jobs so that they acquire a wide base of skills.

Broadened job experience can give workers more flexibility to choose a career path. Employees increase their experience base through cross-national training.

In addition, to offering more career options for the employee, job rotation results in a more broadly trained and skilled workforce for the employer.

Job rotation is a good way to introduce variety into an employee’s career.

In addition, it provides the employee with a chance to learn and use new skills and to better understand different organizational functions.

It can also serve to help the employee build networks within the organization, and be better prepared for future promotion opportunities when they become available.

4. Tuition Assitance Programmes

The organization offers tuition assistance programs to support its employee’s education and development.

Tuition and other costs of educational programs such as seminars, workshops, and continuing education programs may be entirely or partially covered depending upon the adequate performance in the programs.

Career Programmes for Special Target Groups

Career development programs often are put into effect to meet the unique needs of particular employees.

The following groups are targeted for career development:

1. Fast Track Employee

Organizations often identify stars or individuals with high career potential and place them on a fast track for upward moves in the company.

The identification and development of these employees require organizations to exert extra recruitment efforts and to monitor the career progress of these employees frequently.

Organizations must provide considerable feedback, training, and counseling, as well as offer quicker job changes and more challenging job assignments, particularly during the employee’s first few years on the job.

2. Outplacement Programmes

Outplacement programs assist terminated employees in making the transition to new employment.

Generally, outplacement programs involve individual counseling sessions with external or internal counselors where individuals are able to share their feelings.

In addition, workshops may be used to show individuals how to become successful job seekers by teaching them how to identify their skills and abilities, develop resumes, and interview prospective employers.

3. Entrenched Employees

Due to a large number of organization restructurings and downsizing, many employees stay attached to them as their employers would like.

They stay in the job because of their investment, psychological preservation, and perception that there are few career opportunities.

4. Supervisors and Career Counseling

Supervisors are increasingly being called upon to play a greater role in managing the career progress of their employees.

They may serve as a coach, advisor, performance appraiser, and referral agent.

To be effective in these roles, they should be trained as career coaches and mentors to help subordinates develop and implement their career plans in one on one counseling sessions.

5. Executives Coaching

Executive coaching has recently arisen as a popular method for the career and leadership development of managers.

Coaching has become popular because it does not require much of a disruption to the executive schedule, and it provides individualized, targeted, flexible, just-in-time development for executives on the run.

6. Other Programmes

Many career development programs are conducted for the following groups:

Women, minorities, and employees with disabilities.
New employees.
Late career retirement.
Employed spouses and parents.

Thus, career development is necessary to assist employees in career opportunities in the organization and match employees’ needs and goals with the business firm.

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17 Primary Methods of Workers Participation in Management (WPM)

Last Modified: 10 January, 2021 Leave a Comment

Worker’s participation management is conscious of their democratic rights in their workplace. It also manages resistance to change and to secure effective and smooth implementation of decisions.

how to achieve workers participation in management

Worker’s participation in management (WPM) has become an important philosophy of every industrial organization in developed and developing countries.

It satisfies the worker’s urge for self-expression, initiative, and self-actualization.

How to Get Workers Participation in Management?

Participation of workers in the management of the industrial enterprise is achieved by the following methods:

1. Works Committee

A works committee consists of an equal number of representatives of both employers and workers.

It meets frequently for discussion on common problems of the workers and the management.

After discussion, joint decisions are taken and such decisions are binding on both parties.

Matters like wage payment, bonus, training, discipline, etc. are discussed in such meetings.

Works committees are extremely popular and effective in France and England.

2. Joint Management Council

The joint management council consists of a representative of employers, workers, and government.

It is set up to discuss ad give suggestions or improvement with regard to matters of mutual interest.

The decision of such committees are not binding on either party, yet they are implements as they are arrived at by mutual consultations.

The subject matter of joint consultations includes such mutual areas as labor welfare, safety measures, grievances redressal, training, working hours, etc.

3. Collective Bargaining

It is an industrial relations process in which employees through their elected leaders participate on an equal basis with management in negotiating labor agreements, administering the agreements, and reassessing grievances of the workers.

Collective bargaining is done periodically or on a continuous basis between management and workers representative, on issues over which the interests of workers hours and number of are competitive, such wage rates, bonus, working hours and number of holidays.

The agreements arrived at are normally binding on the parties.

4. Co-Partnership

in co-partnership, workers are allowed to purchase shares of the company and thus become its co-owners.

In this way, they can participate in the management of the company through their elected representatives on the board of directors.

As shareholders, the workers can also attend general meetings o shareholders and exercise their voting rights.

Workers are given a higher status and are connected with the company in a dual capacity. Through their directors, workers can protect their interests.

This method creates worker’s ownership in the enterprise.

5. Workers Directors

In this scheme, the worker’s representatives are taken on the board of directors. The worker’s director was supposed to be elected by all the owners of the company through a secret ballot.

This method has some limitations. A worker director would bein a minority nd thus his views would carry little weight with Board.

Moreover, the worker director is not properly trained in the management function.

The effectiveness of the worker’s representative at the board depends upon his ability to participate in decision making, his knowledge of the company affairs, his educational background, his level of understanding, and also on the number of workers representatives on the board.

6. Suggestion Scheme

Under the suggestion scheme, the workers are encouraged to give their suggestions to the management on various administrative matters, and their suggestions are considered carefully and accepted if found suitable.

In addition, rewards are also given to those who make constructive suggestions.

For collecting suggestions of workers suggestion boxes are kept in all departments.

7. Grievance Procedures

A grievances procedure also provides an opportunity for the workers to participate in decisions on matters affecting their interests.

It is established for an early settlement of worker’s grievances.

8. Quality Circles

Quality circles are an important group technique used by the Japanese in their industries to ensure the involvement of workers in the decision-making process and hence their participation in management. It is a self-governing group of workers.

It voluntarily meets on a regular basis, identity, analyze, and solve problems in their work field in stipulated time.

It improves the quality of products and manpower.

Besides improving product quality, quality circles encourage employee commitment and loyalty, develop individuals’ skills and capabilities, raise morale, and build strong problem-solving groups and teams.

9. Shop Councils

In every industrial unit employing 500 or more workers, the employer shall constitute a shop council for each department or shop.

Each council shall consist of an equal number of representatives of employers and workers.

All the representatives of workers shall be from amongst the workers actually engaged shall be on the basis of consensus and not by voting.

10. Unit Councils

Encouraged by the success of the joint council’s scheme in manufacturing and mining units, a new scheme of workers participation in management in commercial and service organizations in the public sector, having envisaged the setting up of unit councils in units employing at least 150 persons.

Thus unit level consists of representatives of workers and management.

It discusses day by day problems and finds solutions.

It takes decisions on the basis of consensus.

11. Auto Management

Under this system, workers acquire complete control of the management through an elected board.

It gives complete control to workers to manage directly all aspects of industrial through their representatives.

Under this system, workers are given wide powers of management of their factory.

The industrial unit is established by the state but the day-to-day management is given in the hands of workers working there.

The production targets etc. are decided at the government level but the rest of the activities are managed by the workers themselves collectively.

This method is suitable in socialist or communist countries. It actually exists at present in Yugoslavia. It is not suitable for the Indian economic system.

12. Plant Council

The plant council shall normally deal with the following matters:

Determination of productivity scheme taking into consideration the local conditions.
Planning, implementation, and attainment and review of monthly targets and schedules.
Materials supply ad preventing its shortfall.
Housekeeping activities.
Improvement in producing in general and in critical areas in particular.
Quality and technological improvements.
Machine utilization, knowledge, and development of new products.
Matters relating to absenteeism.
The special problem of women workers, and
Safety measures.

13. Job Enlargement and Job enrichment

Job enlargement expands job contents. It adds task elements horizontally.

Job enrichment adds more responsibility, more freedom, more decisional powers, additional motivators, more rewards, more challenges to the job.

levels and forms of workers' participation in management — levels and forms of workers’ participation in management

The purpose of job enlargement and job enrichment is to relieve the boredom of the worker which flows from excessive specialization in mass production industries so that the job itself may be a source of self-satisfaction.

Job enlargement and job enrichment do provide for worker’s participation because they offer freedom and scope to them to use their judgment.

However, this method of participation does not provide workers to have a say in vital matters such as job and income security, welfare schemes, and other policy decision of the company which affects them directly.

14. Empowered Teams

Empowerment gives employees more authority and responsibility.

For employees, it creates a sense of ownership and control over their jobs.

Empowered individuals know that their jobs belong to them. Given a say on how things ate done, employees feel more responsible.

When they feel responsible, they show more initiative in their work, get more done, and enjoy the work more.

These teams perform the following functions:

To share various management and leadership functions.
To set their own goals and inspect their own work.
To create their own schedules.
To review their performance as a group.
To prepare their own budgets.
To order materials, keep inventories, and deal with suppliers.
To assume responsibility for disciplining their own members.

15. Total Quality Management (TQM)

TQM is a deep commitment of an organization to quality improvement.

It is a continuous improvement approach to doing business.

It brings improvement in all areas of an organization.

TQM is classified as a participative method because every employee in the organization is involved and is expected to take responsibility for improving quality, every day.

It is a formal program that involves direct participation by all employees.

16. Financial Participation

This method is less likely to involve employees in the consultation or decisional process.

But financial participation can enhance employee commitment to the organization by linking the performance of the firm to that of the employee.

The employee is more likely to be positively motivated and involved if he has a financial stake in the company by having a share of profits or by being a shareholder.

The schemes of financial participation include the profit linked pay, profit sharing, and employee stock option scheme, workers cooperations, management buyouts, pension, and fund participation, and wage-earner funds.

17. Open Door Policy

Some organizations extend a general invitation to their employees to informally drop in the manager’s room any time and talk over their grievances and problems.

Thus, employees have the freedom to discuss innumerable routine grievances also with lower-level managers.

This policy sounds goods ad democratic, but it is generally ineffective.

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15 Reasons for the Occurrence of Industrial Conflicts

Last Modified: 2 January, 2021 Leave a Comment

Industrial conflicts essentially refer to differences or disputes between employers and employees. Disputes arise because of wage demands, union rivalry, political interference, unfair labor practices, labor laws, and others.

What are main reasons of industrial disputes — What are the main reasons for industrial disputes?

Industrial conflict may a passive and hidden which can lead to the withdrawal of effort resulting in lower productivity.

What are the Reasons for the Occurrence of Industrial Conflicts?

The main reasons are below:

1. Economic Advantage

It maintains that both labor unions and employers attempt to maximize their economic gains.

2. Job Security

It focuses on the fact that workmen want to protect the conditions of their work in the long run rather than short term wage gains.

3. Class Warfare

It says that the working classes suffer from systematic exploitation at the hands of capitalists. It creates conflicts.

4. Political Attitude

It emphasizes the conflict between unions and management over the recognition of unions and collective bargaining, jurisdictional disputes among unions, internal leadership rivalries, and the influence of communism on unions.

5. Human Relations

This school assumes that the basic reason for the industrial dispute is the breakdown of primary groups among workers and lack of communication and understanding between management and workers.

6. Wages

35 to 40 percent of the industrial disputes during the last 20 years have been due to issues related to wages, allowances, and bonuses.

7. Increase in Cost of Living

Most of the disputes arise due to the increase in the cost of living of employees.

Unless the wages are linked with the cost of a living index number, workers demonstrate their dissatisfaction and it results in a conflict.

8. Share in the Profit

When workers are not given a share in the profit, like a bonus, it leads to discontentment among employees, thereby leading to industrial conflicts.

9. Replacement of Labour by Machines

When manual labor is replaced by machines and more so by automatic machines, it leads to industrial disputes.

Similarly, a scheme of rationalization, nationalization, or denationalization also results in industrial disputes.

10. Non-Fulfillment of Assurance

Nonfulfilment of assurance given b the employers, including lack of promotion, frequent transfer, long working hours, bad working conditions, etc. leads to industrial disputes.

11. Political Factors

Sometimes, political factors also give rise to industrial disputes, especially when employees from different unions with the support of different political parties.

12. Weak Trade Unionism

The weakness of the trade union movement has enabled employers to deny certain basic demands of workers.

This led to resentment among employees who resorted to direct methods instead of collective bargaining which will be successful only in the case of a strong trade union.

13. Managements Attitude to Labour

Managements generally are not willing to talk over any dispute with their employees or their representatives or refer it to arbitration even when trade unions want them to do so.

What are the different types of industrial disputes?

A management’s unwillingness to recognize a particular trade union and the dilatory tactics to which it resorts while verifying the representative character of any trade union have been very fruitful sources of industrial strife.

14. Change in the Attitude and Staus of Workers

The attitude and temperament of industrial workers have changed because of their education, the growth of public opinion, and the legislation enacted for their benefit.

They are, therefore, very conscious of their rights, and will not put up with any injustice or wrong done to them.

15. Other Causes and Factors

Dismissal or non-employment of any person.
Rapidly increasing population.
Falling prices of essential commodities.
Absence of any suitable grievance redressal procedure. Indiscipline and Violence
Leavers and hours of work.

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10 Basic Limitations of Workers Participation in Management

Last Modified: 10 January, 2021 Leave a Comment

Worker’s participation in management is sharing the decision-making power by the ranks of an industrial organization, through their proper repentance, a tall appropriate levels of management in the entire range of managerial action.

challenges of workers' participation in management — challenges of workers’ participation in management

It is to develop social education for promoting solidarity among workers and to tap tap human talent.

Also, raise the worker’s level of motivation through the satisfaction of his non-economic needs.

What are the Challenges or Obstacles of Worker’s Participation?

Some important limitations of WPM are given below:

1. The Complexity of Technology and Organization

Teachnonly and organizations today are so complex that specialized work roles are required, making it difficult for people to participate successfully if they go very far beyond their particular environment.

This means that low-level workers can participate successfully in operating matters, but they usually have difficulty in participating in policy matters.

2. Workers Incompetence

Another difficulty arises when workers make proposals in areas where they are not competent.

Then, when their idea is rejected, they refuse to support whatever course of action was adopted and soon become alienated.

A related problem is that some workers expect to be consulted on every issuer, even those to which they cannot contribute.

When they are not consulted, they become resentful and uncooperative.

3. More Emphasis on Procedures than Philosophy

It is seen that practitioners become lost in the procedures of participation while overlooking its guiding philosophy.

In fact, participation philosophy requires a sense of involvement and self-efficiency in the minds of employees.

4. Means of Manipulation

A serious drawback with worker’s participation is that it can be used to manipulate employees.

This manipulation is not necessarily by management.

It may be manipulation by the union or by experts who are skilled in group dynamics.

5. Feudalistic Concept

The feudalistic concept of the master and the servant s still prevalent among industrial workers, especially in India.

Workers have an innate feeling that they are born to serve and not to rule.

reasons for failure of workers' participation in management — reasons for failure of workers’ participation in management

Participative management, naturally, is of little interest to such workers.

6. Lack of Initiative

Employees lack initiative, expertise, and self-confidence in participating in managerial decision-making.

7. Unskilled Representatives

Participation of unskilled representatives of employees may result in arriving at unfavorable decisions which may adversely affect the interests of employees.

8. Avoidance of Ideas

It leads to frustration among employees if their suggestions are not accepted by the management.

Did You Know: 17 Primary Methods of Workers Participation in Management (WPM).

9. Unwillingness

The unwillingness of the employers to share power with the worker’s representatives is also a serious problem.

Workers also remain disinterested.

10. Indifferent Attitude of Government

The perfunctory attitude of the government towards WPM also acts as a stumbling block in the promotion of participative management.

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What is Collective Bargaining and Why it is Important to Workers?

Last Modified: 2 January, 2021 Leave a Comment

Collective bargaining produces a contract between the management’s representatives on one side and those of the workers on the other. Thus, collective bargaining is a method by which trade unions protect, safeguard, and improve the conditions of their member’s working lives.

need and importance of collective bargaining

It determines the working conditions and terms of employment. Also, it ensures the participation of trade unions in the industry.

Why We Need Collective Bargaining?

The importance of collective bargaining can be explained under the following headings:

1. Constructive Response to Industrial Conflict

Collective bargaining is regarded as a constructive response to the industrial conflict as it reflects a willingness to remove the conflicts by discussion and understanding rather than by warfare.

It is the only lasting solution to the complex problem of industrial relations.

2. Anti Cyclical Measure

Collective bargaining is a good anti-cyclical measure and that the depression of the thrivers was caused partly by the worker’s inability to organize and bargain collectively and thus maintain their wage levels.

3. Extension of Democracy

Collective bargaining is an extension of democracy to the workplace.

It is the democratic means of achieving the compensation of human services.

In fact, it is democracy at work.

4. Introducing Civil Rights Into Industry

Collective bargaining does more than merely establish a few simple working conditions.

It actually defines a broad area of civil rights in the industry by providing for both managerial and union action according to specified rules rather than arbitrary and capricious decisions.

5. The Force of Social Stability

The idea of participatory democracy has been accepted by many employers as a force for social stability.

By participating in the formulating of working rules and joining political organizations, workers gain a stake in the system.

6. Equitable System

Collective bargaining is regarded as an equitable system because of its equalized power between and employees.

The government helped employers gain power by permitting them to form a corporate type of business activity.

So, it is only equitable to protect workers in their right to organize and bargain collectively.

7. Protects Energy

Collective bargaining absorbs energy which otherwise is more destructively directed.

Thus, collective bargaining provides a grainage channel for worker’s dissatisfaction.

8. Maintains Industrial Peace

Collective bargaining is the cornerstone of congenial industrial relations and of constrictive peace.

It provides a forum for meetings between management and unions and can help to facilitate improved relations and gradual change.

By collective bargaining, the frozen fruits of industrial conflict are thawed.

9. Self Governance

Collective bargaining reflects the implementation of industrial democracy.

The workers are provided with an opportunity for self-governance and a powerful tool that holds checks for arbitrariness and unilateralism.

10. Participative Management

Collective bargaining is accepted as an institution for promoting worker participation in the decision-making process.

It infuses democratic principles into the industrial world.

Workers participate in a decision that affects their work and work life.

Thus, collective bargaining may be viewed as a form of participative management.

11. Unity of Interests

Collective bargaining is a technique used for compromising the conflicting interest of employees and employers.

It helps in ironing out many differences between workers and management.

12. Better Mutual Understanding

Collective bargaining often leads to better mutual understanding.

The employers gain a greater insight into the problems and aspirations of the workers, while the better become more aware of the economic and technical factors involved in industrial management.

13. Regulations of Employment

Collective bargaining is a good method of regulating the terms and conditions of employment.

The parties directly concerned with employment and who best know the problems, participate in collective bargaining.

14. Adjustment with Environment

Collective bargaining provides a flexible means of adjusting wages and conditions of employment to change in the economic, social, technological, and political environment.

What are the advantages of collective bargaining?

Both the parties can meet whenever necessary and can adapt the terms and conditions of their agreement to the changing environment.

15. Restrains Managements Unilateral Actions

Collective bargaining acts as a check over the unilateral actions of the employer and also prevents arbitrary and unjust actions.

16. Brings About Social Change

Collective bargaining is a means of bringing about a change in the balance of power between employers and employees.

It assists the inferior social class to exert pressure on the powerful group for a bigger share in social, economic, and political power, as well as for better welfare, security, and liberty to individual members.

This is the real spirit behind collective bargaining.

17. Easy Implementation of Decisions

Collective bargaining facilitates better implementation of decisions due to the direct involvement of both parties.

Parties know that the decisions are their own and nobody has imposed them.

18. Industrial Jurisprudence

Collective bargaining provides a code defining the rights and obligations of each party.

Basic standards are fixed and every worker is required to perform under these standard conditions stipulated in the agreement.

Thus, a short of industrial jurisprudence is promoted through collective bargaining.

19. Increases Economic Strength

Collective bargaining helps increase the economic strength of both parties at the same time protecting their interests.

20. Other Needs

Collective bargaining is a method of the partnership of workers in management.
It is an attempt in achieving and maintaining discipline in the industry.
It develops a sense of self-respect and responsibility among the employees.
It increases the morale and productivity of employees.
The workers feel motivated as they can talk to employers on various matters and barging for higher profits.
It promotes a sense of job security among the employees. It reduces the cost of labor turnover.
It opens up the channels of communication between the top and bottom levels of the organization.

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Top 10 Challenges of Collective Bargaining in India

Last Modified: 22 December, 2020 Leave a Comment

The progress of collective bargaining in all industries in India is not very encouraging. The major emphasis of booth unions and employers is to settle the dispute through adjudication rather than sporting out the issues among themselves.

challenges of collective bargaining in India

Most of the collective bargaining is limited to large plants and a few selected industries only.

Several factors are responsible for this state of affairs.

What are the Factors Affecting Collective Bargaining?

These are discussed below:

1. Multiple Unions

There is a problem of the multiplicity of unions in the past of the industrial establishments.

No union enjoys the support of the majority of workers in the plant.

Moreover, rivalry among the trade unions does not allow to create the proper atmosphere for collective bargaining.

2. Non-Recognition

There is a lack of definite procedure to determine which union is to be recognized to serve as a bargaining agent on behalf of the workers.

3. Political Domination

There has been a very close association between the trade unions and political parties.

As a result, the trade union movement has not encouraged collective bargaining but has learned towards postictal orientations.

4. Weak Trade Union Movement

The trade union movement still covers only a small portion of the total industrial employment.

Besides, the unions are too weak to bargain collectively on account of their small membership, poor financial resources, multiplicity, inter-union and intra union rivalry, politicization, poor leadership, and absence of suitable legislative provisions for recognizing them as bargaining agents.

5. Excessive Dependence on Adjudication

A large number of organizations and trade unions like to use the devices of compulsory adjudication for the settlement of their industrial disputes.

6. Reduction in the Area of Collective Bargaining

The area of collective bargaining has gradually receded in recent years due to the emergence of several new institutions and modes such as wage boards, statutory fixation of minimum wages and payment of bonus, regulation of fines and deductions, working hours, overtime payment, holidayed, welfare and social security measures.

7. Defective Laws

The law provides easy access to education.

Under the industrial disputes Act, the parties to the dispute may request the government to refer the matter to adjudication and the government will constitute the adjudication machinery.

Thus, faith in the bargaining process is disputed.

8. Little Government Support

The government has shown little interest in ion collective bargaining because:

It does not have confidence in the bargaining strength of our trade unions,
It has fear of stickers and lockouts,
It has fear of the communists gaining in strength.

9. Interference by Political Leaders

More often, industrial disputes are sought to be settled by inviting the political leaders to mediate and help the parties agree.

The inhibits the growth of collective bargaining.

10. Planned Economy

In a planned economy the overall industrial relations pattern is sought to be developed taking into account the overall objectives of the nation and governments fiscal, monetary, and industrial policies.

Hence, unadulterated bilateral negotiations without the state’s involvement are not possible.

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