IR means the relationship between the employer and

the employees in an org. Also includes the

relationship between various unions and employer
as well as relationship between employer and the
state.
The term Employee Relations refers to the
organizations efforts to manage the relationship
between employers and employees .An org with
good ER programme provides fair and consistent
treatment to all employees so they will be
committed to their jobs and loyal to the company.
• Employee relations cover much more than IR as it
covers much than just the collective relationships
between employer and workforce
• there has been a shift towards individual workforce
rights as trade membership numbers has declined
Importance of Employee Relations
• Leads to productivity and satisfaction of employees
in the organization
• Work becomes easier if it shared among all. An
healthy relation with fellow workers ease the work
load hence increases productivity of workers
• The org becomes a happy place to work if the
employees work together as a family .An employee
may lose focus and concentration if his mind is
clouded with unnecessary tensions and stress.
• Healthy ER reduces the problem of absenteeism at
the work place-individuals are more serious
towards their work and feel like coming to office
• Healthy ER discourages conflict and fights among
individuals .pple tend to adjust more and stop
finding faults in each other .they don’t waste their
time in meaningless conflict and disputes instead
they concentrate on their work.
• pleasant work environment increase employee
loyalty to business .it encourages loyal workforce
,improves employee retention hence cutting the
cost of recruitment and training .
GRIEVANCE
It is a real or imaginary feeling of dissatisfaction and injustice
which an employee has about his employment
relationship.
Characteristic of presence of conflict
• Low Morale
• Absenteeism
• Conflicts
A grievance is a specific ,formal dissatisfaction
expressed thro an identified procedure . A
complaint on the other hand is a dissatisfaction that
is not expressed thro the formal grievance
procedure.
Features of A Grievance
• A grievance reflects dissatisfaction or discontent or
a feeling of injustice
• The dissatisfaction must arise out of employment
and not from personal or family
• The dissatisfaction must arise out employment and
not from personal or family problems
• The dissatisfaction must be expressed or implied
• Dissatisfaction may be valid and legitimate or
irrational and ridiculous or false .
• A grievance arises only when an employee feels
that injustice has been done to him
• Grievance if not redressed in time tend to lower the
morale and productivity of the employees
Causes of Grievances
Grievances may arise due to the following
Grievances Arising out of Working Conditions
• Poor physical conditions of the work place
• Very tight production standards
• Non availability of proper tools and machines
• Unplanned changes in the schedule and procedures
• Failure to maintain proper discipline
• Mismatch of the worker and the job
• Poor relationship with the supervisor
Grievances Arising from management Policy
• Wage rates and the methods of wage payment
• Overtime and incentives schemes
• Seniority
• Transfers
• Lack of opportunity of career growth
• Penalties imposed for misconduct
• Leave
• Hostlity towards trade unions
Grievances Arising from Alleged Violation of;
Collective bargaining agreement
Company rules and regulations
Past practice
Responsibility of management
Grievances Arising Out of personal Maladjustment ;
Over ambitious
Excessive self esteem
Impractical attitude to life
Managers can know and understand grievances with
the help of the following methods;
• Exit interview
An interview of every employee who quits the org can
reveal employee grievance .most employee quit
the co due to some dissatisfaction
• Opinion Surveys
A survey may be conducted to elicit the opinion of the
regarding the org and its mgt. group meetings with
employees can help know employee
dissatisfactions .
Gripe Boxes
In these boxes employees can drop their anonymous
complaints
Open Door Policy
It implies a general invitation to the employees to
informally drop in the managers room any time and
talk over their grievances .
Grievance handling Procedure
Step 1
The aggrieved employee ,completes a grievance form
Addressed to hr manager and copied to the union
representative and the immediate line senior of the
employee.
Step 2
The dissatisfied employee , accompanied by union
representative then approaches the immediate
supervisor at his or her place of work and formally
presents his complaints. The immediate supervisor
could be a branch manager , a unit manager ,a section
head or any other officer supervising the employee
• At this level ,the complaint becomes a grievance
after it has been reported to the management .
Step 3
The aggrieved thru the union representative presents
the case to the higher level manager or officer,
preferably in writing .This manager or officer in most
cases is the departmental head .If the grievant is not
satisfied with the solution given by his departmental
head ,he may proceed the next stage.
Step 4
The grievant thru the union representative then
presents his grievance to the officer responsible for the
grievance settlements.
This officer could be personnel manager ,industrial
relations officer or hr manager who will attempt to
settle the grievance or refer the grievance the
grievance committee if any .The grievance committee
is usually composed of the union and employers rep.
STEP 5
If the union and employers rep in the grievance
develop varied views on the grievance ,the chairman
of the committee may appeal to the committee for as
many meeting as possible .
If such meetings get deadlocked ,the grievance could
develop into a trade dispute .This could call upon
conciliation by labour ministry or can also be referred
to the industrial court for arbitration
Industrial Dispute
These are organized protests against existing terms
and conditions of employment
Forms of Industrial Disputes
Strikes – A cessation of work by a body of persons
employed in the industry
Gherao- It means encircling the employer or his
representative. The blockage is meant to restrict the
movement of the persons so as to put pressure on
him.
Picketing :In this method ,workers are dissuaded from
reporting for work by certain persons stationed at
the gate of the organization
Lockout: It means the closing of a place of business of
employment or suspension of work or refusal by
the employer to continue to employ any number of
persons employed by him.
Causes of Industrial Disputes
• Demand for increase of Wages and Salaries
• Employers refusal to share profits /Bonus
• Victimization of workers ,refusal by employers to
recognise trade unions ,communication gap
between employer and employees ,suspension and
dismissal of workers
• poor working conditions and violation of company
act concerning leave and working hours
• Lack of discipline among workers and violence on
the part of employers ,trade unions leaders and
workers result in serious disputes
Approaches of settlement of Industrial dispute
Conciliation
It is the process by which representatives of workers
and employers are brought together before a 3rd
party with the view to persuade them to arrive at
an agreement thro mutual discussion between
them.
Arbitration
It is the process in which a neutral third party listens
to the disputing parties ,gathers information and
takes a decision which is binding on both the
parties
Arbitration has many advantages
• It is established by parties themselves and therefore
,they have greater faith in it.
• The process is relatively expeditious and results in
prompt settlement of differences .
• It is informal and flexible in nature
• It is not very expensive because parties can directly
present their case without a lawyer
Disadvantages
• Judgement can arbitrary when the arbitrator is
incompetent or biased .
• There is delay in settlement of disputes
• Too much arbitration is not a sign of healthy
industrial relations .
Adjudication
Adjudication is the ultimate legal remedy for the
settlement of industrial disputes .It means
intervention of legal authority appointed by the
Government to make a settlement which is binding
on the parties.
Courts of Enquiry
The appropriate government may by notification in
the official gazette constitute a court of inquiry for
inquiring into any matter appearing to be
connected with or relevant to an industrial dispute
• Industrial disputes Act provides for a three tier
system of adjudication .
1. Labour Courts
Gvt in an official gazette constitutes one or more
labour courts for adjudication of adjudication to
matters related to;
• Illegality of a strike or lock out
• Discharge or dismissal of workmen including
reinstatement of grant of wrongfully dismissed
employees.
Industrial Tribunal
The appropriate Gvt may by notification in the official
gazette constitute one or more industrial tribunals
for the adjudication of industrial disputes relating
to;
• Wages and allowances
• Compensatory and other allowances
• Hours of work and rest intervals
• Leave with wages and holidays
• Bonus ,profit sharing
• Rules and discipline
Discipline and disciplinary procedures:
Discipline
It means orderliness or absence of disorder ,chaos
and confusion in human behaviour and action.
Types of disciplinary actions;
Positive Discipline
It implies a sense of duty to observe the rules and
regulations
Also called self discipline
It involves creation of an atmosphere in the org where
by employees willingly conform to established rules
and regulations
Its achieved thro rewards and effective leadership
Negative Discipline
Also known as punitive or corrective discipline
Penalties and punishment are used to force workers
to obey rules and regulations
It involves techniques such as fines ,reprimand
,demotion ,layoff ,trasfers
Causes of Indiscipline
• Ineffective leadership
• Lack of well defined code of conduct to guide
behavior of both sides
• Faulty supervision
• Divide and rule policy of management
• Bias or favoritism in disciplinary- unfair
management practices
• Lack of timely redressal of employee grievances
• Lack of promotional opportunities causing a feeling
of stagnation
• Inadequate attention to personal problems
• Defective communication system
• Victimization and excessive work measures
• Uninteresting work
• Drunkenness and family problems
• Political and trade union influence
• Low wages and poor working conditions
• Disciplinary procedure
• Preliminary Investigations
– Should be done to find out whether a case of mis-
conduct exists.
• Issue of charge sheet
• If a case of misconduct exist ,the management
should proceed to issue charge sheet which is a
notice of the charge and provides an employee to
explain his conduct .
– Suspension pending Enquiry
• A suspension order may be given to employees
along the charge sheet
 – Notice of inquiry
• Incase the employee admits the charges, in his reply
to the charge sheet ,without any qualification ,the
employer can go ahead in awarding punishment
without further inquiry. but if the worker does not
admit the charge the employer must hold the
enquiry to investigate into the charge.
 – Conduct of the Enquiry
• The enquiry should be conducted by a responsible
officer .he should proceed in a proper manner and
examine the witnesses, fair opportunity should be
given employee to cross examine the managements
witness.
– Recording of Findings
• On conclusion of enquiry the inquiry officer should
record his findings and the reasons thereof.
 Awarding punishment
• The management should decide punishment on
basis of findings of the inquiry.
– Communicating punishment
• The punishment awarded should be communicated
to the employee quickly .the letter of
communication should contain reference to charge
sheet ,the inquiry and the findings .the date from
which the punishment is to be effective should be
mentioned.
Essentials of good disciplinary system
Knowledge of Rules ;
Both the supervisor and the worker should clearly
understand the rules and regulations .
An org should develop a code of discipline in
cooperation with workers .
This code should contain in writing the rules,
regulations and the procedures considered
necessary to maintain discipline and with
punishment for their violation.
Prompt Action
When the penalty is imposed immediately after the
misconduct, the offender identifies the punishment
with the act he committed, hence tries to avoid
offence in future.
Fair Action
All acts of indiscipline should be punished consistently
and uniformly .
Well Defined Procedure
Definite and precise provisions for apppeal and
review of the all disciplinary actions should be
provided for.
Constructive Approach
The disciplinary system should be as far as possible
preventive rather than punitive After taking the
disciplinary action the supervisor must assume a
normal attitude towards the worker.
Review and Revision
All rules and regulations should be appraised at
regular intervals to ensure that they are appropriate
to the changing times .If a particular rule is violated
time and again ,it should be toughly studied to
discover and remove the causes of such violations
 Collective Bargaining
It is the process in which the representatives of the
employer and the employees meet and attempt to
negotiate a contract governing the employer
Parties involved
Employers
Trade unions –Representing employees
Types of collective bargaining agreements
•Multiemployer Bargaining
•Single Table Bargaining
•Single Union Agreements

Multiemployer Bargaining
An arrangement in which bargaining takes place
between one or more trade unions and employers’
association for a whole industry with the terms of the
agreement covering the majority of the firms (or
employee groups ) in that industry.
Single Table Bargaining
An arrangement in which an employer negotiates
with several recognized trade unions simultaneously

Single Union Agreements

An arrangement in which an employer recognizes just
one trade union for the purpose of collective
bargaining for all the different categories of workers in
the employing organization.
 TWO BARGAINING APPROACHES
1. Distributive Bargaining
2. Win- Win (Mutual Gain) Bargaining
Each of the approaches can lead to a voluntary
settlement of bargaining issues, and in
neither approach does either party typically
get everything it wants.
 Distributive Bargaining Approach
• Tends to view two parties interests to be in
conflict and the negotiation process as a win lose
exercise.
• Gains for one party’s goal must come at the
expense of the other party.
• Bargaining issues like wages, for which the
economic gain or cost of proposed settlement
terms can be estimated by the parties , lend
themselves to a distributive bargaining approach.
 Distributive Bargaining cont.
• The primary focus of the distributive bargainer is
to maximise his or her own party’s interests,
although to accomplish this may require some
considerations and satisfaction of the other
party’s key interests.
• A distributive bargainer seeks to achieve
settlement at (or as close as possible to ) the
other party’s resistance point (i.e the point at
which the other party would prefer no settlement
to settlement on the opponents proposed terms).
 Distributive Bargaining cont.
• Each negotiator tries to discover where the
other party’s resistance point lies on each
issue and to modify the opponents position
and perceptions to achieve a settlement.
• An effort is made to restrict and structure
communications for strategic advantage ( e.g
control of the bargaining agenda)
 Distributive Bargaining cont.
• Distributive bargainers may respect each
others’ abilities more than they trust each
others intentions.
 Win –Win Bargaining
• Win –win or mutual bargaining differs from
distributive bargaining in a number of ways.
1) Negotiators approach the bargaining process
as a mutual problem solving exercise .
2) Open and honest communication about each
parties interests,intentions , and the merits
of specific bargaining proposals are
encouraged
 Win –Win Bargaining Cont.
• Win –Win lends itself particularly to bargaining
issues in which both parties perceive a common
threat or need and successfully resolving the
problem can benefit the interests of both parties.
• Includes resolving problems such as:
-maintaining competitiveness
- adapting to technological change
- meeting employee health care needs
Lead to win- win approaches.
 Win-Win cont
• Win-Win bargaining approaches encourages
and values mutual trust and respect between
the parties.
• There is also concern for the parties
substantive interests in a win- win situation.
• Efforts are made to identify multiple
alternatives to each negotiating problem that
are capable of meeting both parties key
interests.
Importance of Collective Bargaining
Collective bargaining offers the following advantages ;
• It is a democratic method of regulating the terms
and conditions of employment .The parties directly
concerned with employment who best know the
problems participate in collective bargaining.
• Collective bargaining results in better understanding
between employers and employees . The employer
gains a better insight into the problems and
inspirations of workers .Also workers become better
aware of the economic and technical problems of
the industry.
• Collective bargaining provides a flexible means of
adjusting wages and conditions of employment to
changes in economic, social ,technological and
political environment .
• Collective bargaining helps in establishing a code
that defines the rights and obligations of
employment of each party. Basic stds are fixed and
management cannot take any arbitrary actions to
exploit the workers.
• Collective bargaining facilitates better
implementation of decisions due to the direct
involvement of both the parties .Parties know that
the decisions are their own and nobody has
imposed them.
Challenges of Collective Bargaining
• Lack of strong and central trade unions and
employers organizations who can represent country
wide interests.
• Legislations and regulatory bodies like Salaries and
remuneration commission .
• Multiplicity of unions ,inter-union rivalry and poor
leadership have resulted in weak trade unions
movement
• Government provides little support to collective
bargaining .there is fear of strikes and lockouts and
inflation which disrupt the planned economy.
• Excessive reliance on compulsory adjudication for
settlement of industrial disputes. Third party
interventions is easier than self reliance.
• Conditions of work and life differ widely in different
parts of the country.
Conditions for successful collective Bargaining
In order to make collective bargaining effective the
following conditions must be satisfied:
A favourable political climate
The gvt and the public opinion must be convinced
that collective bargaining is the best method of
regulating employment conditions .The gvt should
remove all legislative restrictions which hamper
collective bargaining .It can also confer a right to
bargain collectively, lay down the form and content
of collective agreement, register these agreement
and assist in their enforcement.
Freedom of Association
Collective bargaining is not possible if employees are
not to form trade union as the please .A strong and
representative trade union is required to bargain
with the employer on equal basis
Recognition of the union
Employers should be required by the law to give
recognition to representative trade unions. It is in
the interest of the employer to recognise a strong
union ,to avoid strikes and to safeguard against
undercutting labour stds
Willingness to Give and Take
Both the employers and the unions leaders should
bargain in the spirit of compromise and reciprocity
.If each party adopt an adamant attitude
,bargaining will not be possible .Willingness to give
and take does not mean that concessions made by
one side must be marked by equal concession by
the other side.
fair labour practices
Both the employer and the trade unions should avoid
unfair labour practices .Collective bargaining is
possible only in an atmosphere of mutual
recognition and [Link] must recognise and
accept the workers right to organise and workers
must accept the employers right to manage.
Problem Solving Attitude
The negotiating teams on both the sides must adopt a
problem-solving rather than fighting approach. The
teams should consist of persons with analytical
mind ,objective outlook and cool temper
Continuous dialogue
A dead end must be avoided and the talk should
continue .At times it may necessary to leave highly
controversial issues for the time being and narrow
down the field of disagreement on other matters
as long as talks continue ,agreement can be
possible .
Availability of the Data
The employer must ensure that all the required
records are readily available .Facts and figures
concerning rates of pay, manpower forecast
technological changes e.t.c
 History of Trade Union Movement in
Kenya
• There were two types of trade union
leadership during the colonial period .
• The first phase , when the movement was in
its formative stages the leadership was
dominated by people of Asian origin operating
widely over east Africa.
• The second phase was when Africans got
recruited into the Trade Union leadership.
• From the 1920’s the types of trade union on record
were those meant to serve the interests of artisans
or had a prefix Asian attached to them.
• The Trade Union Leadership of these periods was
drawn from the poorer sections of the Asian
working class.
• The reason for this was because it would have been
a contradiction for Asians of management status
and above to subscribe to an organization that
claimed to champion the interests of the oppressed.
• African workers seemed not to have been attracted
to T.U because of
- the migratory nature of their employment
- Low level of consciousness
• African strikers who were not in trade unions or
workers organizations used canteen occassions of
social get together and ‘native’ association for
organizing strikes.
• First phase of trade union activity was more in
Kenya than in Tanzania or Uganda as Kenya had
more economic activity.
• Most of the trade unions of this period represented
Asians of the artisan, workman and mason class.
Most of the leadership was drawn from this class.
• This class felt disadvantaged . Eventually in Kenya
they were to forge an alliance with the African
nationalists and become committed to the prospect
of a better future.
• The dominant trade union then stuck to the bread
and butter issues meant to improve the position of
the Asian working classes in the racially stratified
colonial society.
• They pressed for wage increases , prevention of
wage reductions and obtaining workmens
compensation.
Functions of Trade Unions
two broad functions ;
1. Intra mural functions –are functions that protect
the worker interests e.g wage increment ,provision
of more benefits ,job security e.t.c through
collective bargaining and industrial action e.g
strikes ,go slows e.t.c
2. Extra-Mural Functions –Involves functions that
relate to providing financial and non financial
assistance during period of strikes and lockouts,
extension of medical assistance during sickiness
and casualties
Other Functions
Protection; Trade union safeguard workers against all
sorts of exploitation by the employer. Unions
provides protection from unfair labour practices
Proper standards of Living ;Unions attempt to secure
for workers fair wages ,proper working conditions
and welfare facilities like health ,housing ,recreation
and social security so as to ensure desirable living
standards for them
Grievance Redressal-A trade union takes up the
individual and collective grievances of workers with
the employer
Collective Bargaining
A trade union negotiates and bargains with the
management to settle terms and conditions of
employment
Protests –They organise demonstrations ,strikes ,and
other forms of protests to press the demands of
workers
Education- Unions make workers conscious of their
rights and duties and of the need for technological
changes
Welfare and Recreation- some unions provides
recreation ,sports and other welfare facilities for
their members
Presentation=They represent working class in various
international forums like ILO
Advice-They provide advice and information to
management on human resource policies and
practices .
Communication-They serve as a link between
employers and workers so as to develop mutual
understanding and cooperation between the two
sides
Problems and Shortcomings of Trade Unions
Uneven Growth
; they are concentrated in large scale industry ,there is
very little trade union activity in small scale sector.
Weak Financial Position ; Inorder to increase the number
of members ,most of the unions keep subscription rates
low. Due to financial weakness most of the unions are
not in a position to undertake welfare programmes of
the workers
Multiplicity of unions ; Trade union act encourages a
small sector of workers to form separate unions
.political outsiders establish unions of their own to
increase their political influence .In some cases
employers encourage split in unions to undermine their
bargaining power.
Inter –Union Rivalry: Multiple unions create rivalry.
Employers take advantage of the infightings
between unions and play unions against each other.
they can also refuse to bargain on the plea that
there is no representative union.
Problem of Recognition; Many times ,the employers
have refused recognition to trade unions on
contention that unions consists of only a minority of
workers or that two or more unions exists.
Apathy of Workers ;Majority of workers do not take
keen interest in union activities .The attendance of
general meetings of unions is very poor.
Opposition From Employers
Trade unions have to face opposition from employers
.many employers try to intimidate and victimise
labour leaders .start rival unions and bribe union
officials .
Measures for strengthening Trade Unions
Strong Base ;The membership of unions should be
increased .For this purpose rigorous membership
campaign should be launched
Financial Stability ;To improve the financial condition
of the unions, the minimum subscription should be
raised .
Recognition of the Unions ;
It should be made obligatory for employers to
recognise the unions in all undertakings employing
100 or more workers
Employee Participation
According to keith Davis participation refers to the
mental and emotional involvement of a person in a
group situation which encourages him to contribute
to group goals and share in the responsibility of
achieving them
.It is a process by which authority and responsibility of
managing industry are shared with workers.
Objectives of Employee participation In
Management
Economic Objective : It aims at increasing
productivity of labour by improving cooperation
between employer and employee. productivity is
sought to be increased by improving job satisfaction
and industrial relations
Social Objective ; Industry is considered a social
institution in which each and every worker has a
vested interest. The Purpose of participation is to
ensure human dignity and to get the workers a
respectible status in society.
Psychological Objective
It seeks to bring about a change in attitude of workers
.Through it they will consider themselves an
intergral part of the industry rather than mere
working hands .It also allows employees an
opportunity to express themselves thereby
satisfying their non –economic needs.
Importance of workers participation in management
Mutual understanding :Generally employee and the
employer doubt the integrity of each other due to
ignorance of each others problems .Participation
brings the two parties closer and makes them
aware of each others problems .
Higher Productivity: Cooperation between mgt and
the employees helps to increase production and
profits of industry. Throu participation employees
learn the problems of the industry and better
understand their role .participation improves
employee motivation and job satisfaction which in
turn help to increase their efficiency.
Industrial harmony: It helps to reduce industrial
dispute and to improve workers loyalty. Continuous
conflicts between employer and employees is
eliminated and workers improve peace in industry.
Industrial Democracy: It ushers in industrial
democracy which is necessary for political
democracy. Need for outside intervention between
employer and employees is eliminated and workers
are free from exploitation.
Less Resistance to Change; workers often resist
change due to fear and ignorance .When workers
participate in decision making they come to
understand that change is ultimate in their own
interest. They become more able and ready to
adopt themselves to technological and other
changes made to improve the competitive position
of the co.
 .
Creativity and Innovation
It encourages workers to think and take initiative
.Their talent and ability can be capitalised. a highly
competent employees can be spotted .
.Participation is helpful in training and developing
future executives .workers urge for self expression is
satisfied .
Forms of Workers Participation in MGT
Suggestion Schemes :
Workers are invited and encouraged to offer
suggestion for improving the working of the
enterprise .periodically all suggestions are
scrutinized by the suggestion committee .Good
suggestions are accepted for implementation and
suitable rewards are given to concerned workers
Joint management Councils:
These councils consist of equal number of
representatives of employers and workers .The
councils discuss various matters concerning working
• Working conditions ,accidents prevention ,
indiscipline, absenteeism, training and such other
matters are generally some items discussed
Worker Directors :
Representatives of workers are nominated or elected
on board of directors .Companies provide
representatives to workers on their board of
directors
Co-Partnership: In this method ,workers are made
shareholders in their cos ..As partners ,they take
part in the mgt of the enterprise. They may elect
their representatives to the board of directors. They
also share co profits in form of dividends
Joint Consultation:
Is the process whereby employer consults the workers
either directly or through their representatives and
seeks their opinion on various issues while retaining
to himself the right of taking final decisions. It is
carried on through joint consultative committee
consisting of representatives of both employer and
workers
Organization Policy
Transfer Policy
A good transfer policy should satisfy the following
requirements;
i. It should clearly specify the types of transfers and
the circumstances under which transfer will be
made.
ii. It should prescribe the basis for transfers .When
two persons want transfer to the same job,
whether the decision will be based on seniority or
merit or some other factor.
iii. It should indicate the executives responsibility for
initiating and approving the transfers
 It should tell whether the transfer can be made
only within a department or also between
departments.
 It should specify the effect of transfer on the
seniority and pay of the employee
 It should be put in writing
 It should be communicated and explained to the
employee
 The transfer should as far as possible be made in
consultation with the employee. Alternatively the
transfer should be made known to the employee
well in advance.
 Reasons which will be considered for personal
transfers and their order of priority should be
specified .
 Facilities e.g leave ,special allowance for shifting to
the new place to be extended to the transferred
employee should be prescribed.
Concept of Promotion
Promotion refers to advancement of an employee to a
higher post carrying a greater responsibility ,status
and salary.
Criteria (bases) for Promotion
Promotion can be made on basis of seniority or merit
or combination of both.
Seniority as a Basis of Promotion
Seniority implies relative length of service in the same
organization .Seniority is suggested as criteria for
promotion on the plea that there is a positive
correlation between length of service and talent
Advantages of seniority bases of Promotion
 It is relatively easyto measure the length of service
and thereby judge the seniority of the employee
 The system is simple to understand and operate
 Its objective criteria and minimizes favouritism.
Hence creates sense of security among employees
and avoids grievances and conflicts arising from
promotion decisions .
 It helps to reduce labour turn over because every
employee has a chance for promotion provided he
remains with the organization.
 The system enjoys full support of trade unions and
therefore contributes to cordial industrial relations
• It provides a sense of satisfaction to senior
employees and is in line with the culture of
respecting seniority in all walks of life.
Seniority system suffers from the following
disadvantages ;
• The assumption that length of service indicates
talent is not valid. Beyond a certain age a person
may not learn.
• In this system the performance and pontetial of an
individual is not recognized .hene demoralizes and
demotivates young young employees who are
talented .they have to wait long before promotion
hence may leave the org.
• The system kills ambition and zeal to improve
performance because everybody will be promoted
without improvement.
• The efficiency of the org suffers in the absence of
incentives for hard work and self development
• It fails to attract young and hardworking employees
Merit as a bases of Promotion
Merit implies knowledge ,skills and performance
record of an employee
Advantages of merit System
• It motivate competent employees to work hard and
acquire new skills
• It helps maintain efficiency of the org by recognizing
talent and performance
• It helps attract and retain young and promising
employees in the org.
Disadvantages
It is very difficult to judge merit and subjective judge
ment is involved
Trade unions and workers distrust the integrity of
management in judging merit
• Merit indicates past achievements .It may not
denote future potential .
• When young employees are promoted over older
employees ,the old experienced people may leave
the org
• Old employees feel insecure
Promotion Policy
Every org should formulate a sound policy regarding
promotion of its employees .The co that has no
recognised promotion policy is likely to have
frustrated and restless employees as they have no
opportunity for advancement .
FEATURES OF PROMOTION POLICY
It must provide for a uniform distribution of
promotional opportunities throughout the co. The
ratio of internal promotions to external recruitment
must be the same in all departments .
It must tell the employees the avenues of
advancement available to them .charts showing
ladders or paths of advancement or promotion
The basis of promotion should be clearly specified
.clear cut norms and criteria should be laid for
judging lenghth of service ,merit and potential of an
employee
Appropriate authority should be entrustested with
responsibility of taking decisions on promotions

Suitable training and development should be

provided so that employees can prepare themselves
for advancement
Detailed records of service and performance should
be maintained for all employees
It should be consistent ie it should be applied
uniformly irrespective of the person concerned
Promotion policy should be writting and should be
communicated to the employees
Policy should be flexible .Internal staff should be
given a chance of promotion before higher level
posts are filled from outside
Transfer Policy
The need for a transfer may arise due to several
reasons ;
To meet org needs –due to changes in volumes of
production .
To satisfy Employee needs ;-Employees may request
for transfer
To better utilize employees –mgt feels his capacity
would be better utilized elsewhere
To provide relief –To relief overburdened employees
Demotion Policy
Its implies to assignment of an employee to a job of
lower rank with lower pay
Features
The circumstances under which employees can be
demoted should be clearly specified and made
known to employees
Any alleged violation of established rules and
regulations should be competently investigated
Once violations are proved there should be consistent
and equitable application of the policy
The policy should be fair and impartial
• A provision should be made for review of every
demotion
• It should be open rather than closed policy.
Types of Employee Separation
Separation of an employee takes place when his
service agreement with the org comes to an end
and the employee leaves the org. It may occur due
to resignation ,retirement ,death, dismissal and
layoff.
Resignation
It is a voluntary separation initiated by the employee
himself .An employee may resign on ground of ill-
health,marriage ,better opportunities in other
[Link] an employee may be asked to
resign as an alternative to termination on grounds
of gross negligence of duty
Retirement
There are three kinds of retirements ;
a) Compulsory Retirement –After attaining the
specific age .In kenya the retirement age is 60
years
b) Pre-Mature Retirement
An employee may retire before attaining the specific
age due to bad health, physical disability, family
problems .He gets full benefits of retirement
provided the management allows pre-mature
retirement .
Voluntary Retirement
When an org wants to cut down its operations or
close forever ,It may give an option to its employees
with certain minimum service for voluntary
retirement in return for a lump sum payment .This
type of retirement is called Golden hand Shake.
Layoff/Redundancy
It implies temporary removal of an employee from
the payroll of the org due to unavoidable
circumstances beyond the control of an employer.
Employee is not terminated and is expected to be
called back in future .The aim of layoff is to reduce
financial burden of an org.
Retrenchment
It means permanent termination of an employee
service for economic reasons in going concern.
Termination of service ,on account of disciplinary
action ,or prolonged illness or due to closure of
establishment .
Dismissal/Discharge
Refers to the terminating the service of the employee
by way of punishment for misconduct or
unsatisfactory performance when he has no
potential to improve his performance .It should be
supported by a just and sufficient cause .
Exit Interview
It is an interview held with an employee who is
leaving the org voluntarily .The purpose is to find
out the reasons why the employee is leaving and
/or provide counselling and assistance in finding a
new job
The feedback received from the exit interview can
provide the employer a better insight into what is
right and wrong about the co.
Exit or separation interviews serve the following
purpose;
• To know the employees reasons for leaving the co
• To find out what the employees liked and disliked in
the co
• To obtain suggestions for improving the work
climate in the co.
Techniques of Human Relations
In order to maintain health human relations in an org
,management may employ the following measures;
Integration
The needs of individuals and the group or the org
should be properly integrated .when the goals
becomes congruent the interests of both the firm
and its employees can be simultaneously achieved
.Mgt should create a climate which employees can
appreciate organizational and environmental
constraints .
Work Environment
Mgt should create a work environment where workers
can perform their jobs with sense of security .They
should feel that they are doing something
important ,job security ,meaningful and challenging
job, scope for opportunities and advancement and
satisfying interpersonal relationship are essentials
ingredients of congenial work environment .
Open Communication
Many of human relations problems arise due to
inadequate and distorted communication .The need
to know about ones situation ,prospects ,co policies
and contemplated changes is one of the basic needs
of employees .lack of comm results to fear,
misunderstanding and distrust. Employee hand
book ,grievance procedures, suggestion schemes
e.t.c enables mgt to understand the feelings
,problems ,fears and aspirations of employees.
grape vine may also supplement the formal
communication
Adaptive Leadership
Needs ,values and attitudes differ from individual to
individual and change over time .therefore ,no style
of leadership can be successful in all situations .An
effective leader is the one who fully understands his
people and adapts his approach to the
requirements of the situation.
Counselling services in the organization
The supervisor should patiently listen and help solve
the problems faced by workers both inside and
outside the organization .Such counselling reduces
the workers tension and improves their self
confidence. The employee feels at home in the
fourwalls of the factory or office