Organizational culture has brought about a radical change in the functioning of different organizations. It is basically the study of organizational management and studies, which includes the description of attitude, psychology, and belief, and experience, personal and cultural values of an organization. Like varied personalities, there are different types of organizational cultures that function, by following a method of working that is best suited to their core business.
Following are the main types of organization structures found today:
Normative Culture
In a normative organization, the organization stresses on implementing the organizational procedures in a correct way, and according to the norms and rules defined. This kind of culture is perceived to portray, a high standard of business ethics.
Pragmatic Culture
In contrast to normative cultures, stress is laid on satisfying the wish of their clients. In this type of organizational structure, no norms are set by the company, and utmost importance is given to the needs of the client.
Academy Culture
In this kind of culture, employees are highly skilled, and the organization provides an environment for the development and honing of employee skills. Examples of this kind of culture are hospitals, universities, large corporations, etc. Employees tend to stay with the organization and grow within it.
Baseball Team Culture
In this kind of culture, the employees are "free agents" and are highly prized. These employees find employment easily in any organization and are very much in demand. There is, however, a considerable amount of risk that is attached to this culture, as it is also fast paced. Examples of this kind of culture are advertising, investment banking, etc.
Club Culture
Usually the employees stay with the organization for a long time and get promoted to a senior post or level. These employees are handpicked, and it is imperative that they possess the specific skills required and desired, by the organization. Examples of this kind of organization are law firms, the military, etc.
Fortress Culture
Employees are not sure if the will be laid off or not by the organization. Very often, this organization undergoes massive changes. Few examples of this type of culture are loans and savings, large car companies, etc.
Tough-Guy Culture or Macho Culture
The most important aspect of this kind of culture is big rewards and quick feedback. This kind of culture is mostly associated with quick financial activities like brokerage and currency trading. It can also be related with activities, like a sports team or branding of an athlete, and also the police team. This kind of culture is considered to carry along, a high amount of stress, and people working within the organization are expected to possess a strong mentality, for survival in the organization.
Work Hard/Play Hard
This type of organization does not involve much risk, as the organizations already consist of a firm base along with a strong client relationship. This kind of culture is mostly opted by large organizations which have strong customer service. The organization with this kind of culture is equipped with specialized jargons and is qualified with multiple team meetings.
Bet Your Company Culture
In this kind of culture, the company makes big and important decisions over high stakes endeavors. It takes time to see the consequence of these decisions. Companies that postulate experimental projects and researches as their core business, adopt this kind of culture. This kind of culture can be adopted by a company designing experimental military weapons for example.
Process Culture
This type of culture does not include the process of feedback. In this kind of culture, the organization is extremely cautious about the adherence to laws and prefers to abide by them. This culture provides consistency to the organization and is good for public services.
One of the most difficult tasks to undertake in an organization is to change its work culture. An organizational culture change requires an organization to make amendments to its policies, its workplace ethics and its management system. It needs to start right from its base functions which include support functions, operations and the production floor, which finally affects the overall output of the organization. It requires a complete overhaul of the entire system, and not many organizations prefer it as the process is a long and tedious one, which requires patience and endurance. However, when an organization succeeds in making a change on such a massive level, the results are almost always positive and fruitful. The different types of organizational cultures mentioned above must have surely helped you to understand them. You can also adopt one of them for your own organization, however, persistence and patience is ultimately of the essence.
Saturday, May 8, 2010
Applicability of labour laws in service sector
Applicability of labour laws in service sector
INTRODUCTION:
Labour laws emerged when the employers tried to restrict the powers of workers' organizations and keep labour costs low. The workers began demanding better conditions and the right to organize so as to improve their standard of living. Employer’s costs increased due to workers demand to win higher wages or better working conditions. This led to a chaotic situation which required the intervention of Government. In order to put an end to the disputes between the ever-warring employer and employee, the Government enacted many labour laws.
In India the labour laws are so numerous, complex and ambiguous that they promote litigation rather than the resolution of problems relating to industrial relations. The labour movement has contributed a lot for the enactment of laws protecting labour rights in the 19th and 20th centuries. The history of labour legislation in India can be traced back to the history of British colonialism.
India has a number of labour laws addressing various issues such as resolution of industrial disputes, working conditions, labour compensation, insurance, child labour, equal remuneration etc. the applicability of labour laws differ from sectors such as Baking, IT, Service, Manufacturing etc. This article deals more about the applicability of labour laws for service sectors.
Synonyms:
Service sector:
The part of the economy that includes individuals and businesses that produce services rather than goods, The service sector includes education, finance, communications, health care, utilities, wholesale and retail trade, and transportation.
Labour law:
Labour Law is the body of laws, administrative rulings, and precedents which address the relationship between and among employers, employees, and labor organizations, often dealing with issues of public law.
Labour laws for service sectors:
Ø Tamil Nadu Shops and Establishments Act, 1947
Ø Tamil Nadu Maternity Benefit Act, 1961
Ø Contract Labour Act, 1970
Ø Payment of Gratuity Act, 1972
Ø Tamil Nadu Industrial Establishments (National and Festival)) Holidays Rules, 1959
Ø Payment of wage Act, 1936
Ø Employees state insurance Act, 1948
Ø Employees provident fund and miscellaneous Act, 1952
Tamil Nadu shops and establishment Act, 1947:
Ø This law regulates the employment of workers in shops and commercial establishments.
Ø The Act provides for the opening and closing hours of shops and establishments, and provision of weekly holiday with wages.
Ø The officials of the Labour Department who are notified as Inspectors under the Act are competent to initiate prosecution proceedings against the employers who violate the provision of this law.
Ø The Act provides for the compounding of offences committed under this law. This Act gives pride of place to the Tamil Language. This Act requires that in the name board of any shop or commercial establishment the name of the establishment should be written predominantly in Tamil.
Ø This Act is being enforced by 218 Assistant Inspectors of Labour, 68 Deputy Inspectors of Labour and 28 Inspectors of Labour.
Tamil Nadu Maternity Benefit Act, 1961:
Ø The law regulates the employment of women during six weeks immediately after delivery or miscarriage or medical termination of pregnancy
Ø The law safeguards women’s from being employed in hazardous nature of work to pregnant women.
Ø To pay maternity benefits for a maximum period of twelve weeks of which six weeks before delivery and six weeks after delivery provided the women works for a minimum of 80 days in a year.
Ø To grant one month’s leave with wages, in addition to maternity benefits, for illness arising out of pregnancy, delivery, pre-mature birth of a child, miscarriage, medical termination of pregnancy and tubectomy operation.
Ø To give two breaks of 15 minutes each to nursing mothers until the child attains the age of 15 months.
Ø Not to discharges, dismiss during the period of absence allowed under the Act / Rules.
Ø To exhibit abstract of the Act and the Rules in the premises.
Contract Labour Act, 1970:
Ø The Contract Labour (Regulation and Abolition) Act, 1970 is enacted with an object to regulate the employment of contract labour in certain establishments and to abolish this system in certain circumstances and for matters concerned therewith.
Ø This Act applies to any establishment in which 20 or more workmen are employed on any day of the proceeding twelve months as contract labour and to every contractor who employs or employed on any day of the proceeding twelve months 20 or more workmen.
Ø Every contractor has to get license under this Act.
Ø If the benefits under this Act, to the contract labour employed in an establishment are not provided by the contractors within the time specified, the principal employer is liable to provide such amenities.
Payment of Gratuity Act, 1972:
Ø To pay gratuity at the rate of 15 days salary per year of service to employees, who have put in a minimum of 5 years’ service
Note: The calculation of gratuity should be made as follows:
Ø Divide the monthly salary by 26 days and multiply by 15 days and further multiplied by number of years of services. The last years’ service if more than six months to be taken as one year for calculation and in all other years employee should work minimum of 240 days.
Ø To pay gratuity within 30 days from the date of receipt of application by the employee in Form ‘I’.
Ø To obtain nomination in Form F from employees on completion of one year service.
Ø To serve Notice of opening in Form A to jurisdictional controlling authority.
Ø To display abstract of the Acts and Rules in Tamil and English at the premises of establishment.
Ø To maintain and use forms prescribed under the Rules.
Tamil Nadu Industrial Establishments (National and Festival)) Holidays Rules, 1959:
Ø To allow every employee in each calendar year, a holiday on 26th Jan, 15th Aug., 2nd Oct. and five other holidays for such festivals as the employer may specify in consultation with employees.
Ø To submit proposal for the specification of festivals if FORM No.I in duplicate along with a copy of notice in FORM No.II to the Jurisdictional Inspector.
Ø To display holidays list approved in FORM No.III in the premises of establishment.
Ø The employer should send to the Inspector a statement showing the holidays allowed in the calendar year under section 3 in FORM No. V and also display the same in the premises.
Ø The employer should serve a Notice in FORM NO.V-A on the employee who is required to work on any holiday, not less than 24 hours before such holiday.
Ø To give twice the wages to employees who work on holidays or normal wages with a substituted holiday.
Payment of wage Act, 1936:
Ø Any person employed in any organization who is drawing a salary less than 6500 is eligible to avail benefits under this Act
Ø The Act provide for timely and regular payment of wages, on or before 7th in case of less than 1000 employees and on or before 10th in case of more than 1000 employees
Ø The total deduction must not exceed 50% of the total salary
Ø Every employer is required to maintain registers/records in Form No. I, II, III, IV to be kept
for 3 years from last entry.
Employee State Insurance Act, 1948:
Ø To register the factory / establishment, within 15 days by filing Form 01 and to obtain employers code number.
Ø To obtain Declaration, in Form 1 before taking any person into employment, To send declaration forms within 10 days to the ESI Local office along with Return of Declaration in Form 3.
Ø To deduct 1.75% of the wages as employee’s contribution and add 4.75% as employee’s contribution and deposit the same within 21 days of the last day of the calendar month.
Ø To maintain a Register of Employees in Form 7 and make entries of contributions.
Ø To make payment of ESI contributions within 21 days of wage period.
Ø To send Return of Contributions in Form 6 to Local Office within 42 days from the closure of contribution period.
Ø To obtain particulars of employee’s family in Form 1-A and later, any changes in Form 15-B, within 10 days, and submit the same to the local ESI office.
Ø To issue Identity Card, in place of slip, to the employees.
Ø To maintain a bound Inspection Book, prescribed under Regulation 102 A – an Accident Book in Form 15 and to send Accident Report to the local office/dispensary and to others depending upon the seriousness of the accident.
Employee’s provident fund and miscellaneous Act, 1952:
Ø To obtain PF Code Number, soon after employing 20 or more persons, from the Regional/ Sub-Regional PF Commissioner by submitting prescribed forms.
Ø To allot individual PF Number, to each employee and maintain the list in Form 9.
Ø To obtain Nomination and Declaration in Fom.2 from every employee including casual, Temporary, Contract or Regular immediately and obtaining employer’s Code Number.
Ø To deduct 12 % of earned salary (gross of basic + DA+ retaining allowance if any) in the payment.
Ø To pay employee’s share of 12% and employer’s share of 3.67% to the Provident Fund in A/c. No.1 through prescribed common challan, within 15 days from the wage period.
Ø To pay employer’s share of 8.33% to the Pension Fund in A/c. No. 2 through prescribed common challan within 15 days from the wage period.s
Ø To pay PF Administration Charges at 1.10% to A/c. No. 10 through prescribed common challan within 15 days from the wage period.
Ø To pay EDL I charges at 0.5% to A/c. No. 21 through prescribed common challan within 15 days from the wage period.
Ø To pay Inspection charges at 0.01% to A/c. No.22 through prescribed common challan within 15 days from the wage period.
Ø To maintain Contribution Card in Form 3-A separately for all PF members.
Ø To send monthly statement of Contributions in Form 12-A along with copies of paid challan.
Ø To send Form 5 along with the Declaration and Nomination in Form 2 and Form 10 along with Form 3-A.
Ø To send Annual Return in Form 6-A along with Form 3-A before 20th March of each year.
Conclusion:
This self-certification by the IT-ITES companies will be regarded as sufficient compliance with the requirements of the different Acts and the Rules made there under regarding the maintenance of registers and filing of the returns. The first filing shall be manual. Thereafter, the subsequent returns shall be maintained in electronic form. Any distortion of facts while making self-certification will be dealt with stiff penalties. E-filing of returns will be permitted after all the offices of the concerned Inspectors are computerized for receiving such returns.
Reference:
Ø Information Communication Technology, Policy of Tamilnadu (IT Policy) – 2008
Ø Citehr.com
Best Human Resource Practices in Manufacturing Companies
Best Human Resource Practices in Manufacturing Companies
The role of Human Resources is changing as fast as technology and the global marketplace. Historically, the HR Department was viewed as administrative overhead. HR handled benefits administration, kept personnel files, and other records, managed the hiring process, and provided other administrative support to the business. Those times have changed. The positive result of these changes is that HR professionals have the opportunity to play a more strategic role in the business. The challenge for HR managers is to keep up to date with the latest HR innovations - technological, legal, and otherwise.
There is a need to know about the current HR challenges, and how to most-effectively manage them in your workplace.
This report discusses some best HR practices in few companies in specific function.
Introduction
Any practice that you devise to increase the competence, commitment and improve the culture can be termed as HR Practice, and this can be in the form of a norm, rule, system, or some practices.
Examples: -
Ø Wishing Employees on their birthday, anniversary, etc., by HR Head
Ø Having health facilities / baby-sitting facilities
Ø Continuous learning and development oriented PMS system
Ø Good Employee Services
Ø If employee attends the office on his birthday and the amount will be given as allowance, etc.
Ø Company's Internal Magazine covering all the happenings in your company
Ø Regular training and development
There is no single best practice to which all organizations should aspire. Rather, the literature shows that each firm has a distinctive HR system that represents a core competency required for the survival and sustainability for that particular organization.
"Best Practices" in HR are subjective and transitory. What is best for one company may not be best for another. What was best last month may not be best for today. The concept of "best" is highly subjective and non-specific. "Best Practice" is not a set of discrete actions but rather a cohesive and holistic approach to organizational management.
Best Practices are initiatives taken by HR to: -
Ø Create a feel good factor
Ø Give high visibility and focused impact
Ø Be unique and relevant
Ø Gel with organization culture
Ø Provide fresh / creative way to accomplish a task
Influencing Factors
Some factors which constitute best practices in HR are: -
Ø Communication
Ø Continuous Improvement
Ø Risk Taking
Ø Recognition
Ø Work-life Balance
Ø Culture Consciousness
Ø Recruitment
Ø Training & Development
Communication
The "best practice" companies have the most intense communications which are broad, continuous and involve multi-directional employee contact. Communications with employees is "a given", and is formal, focused and on-going responsibility. Communications are not done as an "extra".
1. "Talk of the Week" where all the employers are asked to participate and give their word and opinion about their superiors helping to bridge the gap.
2. "Taking a Step Ahead" is Round Table Initiative followed by GSK Group to empower the employees.
2. "Taking a Step Ahead" is Round Table Initiative followed by GSK Group to empower the employees.
Continuous Improvement
The best companies are never satisfied. They focus not only getting it right but doing it better. They are intensely dependent on feedback from all sources as the prime basis of their continuous improvement philosophy.
1. "Dosti" Counseling Facility, where trained counselor offer free and confidential advice on any issue under the sun - from work related stress to marital discord adopted by Texas Instruments.
2. Les Concierges Service - Outsourcing chores like paying bills, booking tickets and buying vegetables followed by Johnson & Johnson.
3. Breakfast with Department Head in groups of 10 adopted by GSK.
4. Cashless Hospital Scheme for employees & their families by Johnson & Johnson.
2. Les Concierges Service - Outsourcing chores like paying bills, booking tickets and buying vegetables followed by Johnson & Johnson.
3. Breakfast with Department Head in groups of 10 adopted by GSK.
4. Cashless Hospital Scheme for employees & their families by Johnson & Johnson.
Risk Taking
The best companies have leaders who possess courage to make the hard decisions and carry them out.
1. People like Jack Welch, CEO of General Electric, is known as "Neutron Jack" for his massive shake-ups at GE. These people are not afraid to go face-to-face with people - internal customers included - to discuss issues they feel need to be addressed.
Recognition
1. On-the-spot Recognition followed by Shoppers' Stop where all employers are recognized on their contribution and talent they exhibit. For every contribution, they are given stars - making people feel Stars.
2. Special Awards like "Helping Hand", "First Mover", And Quarterly Rewards and appreciation are some of the initiatives taken by many companies.
2. Special Awards like "Helping Hand", "First Mover", And Quarterly Rewards and appreciation are some of the initiatives taken by many companies.
Work Life Balance
1. An initiative taken by GSK that every employee can walk out of the office at 6.00 p.m. helping them to balance both professional and personal life.
2. Quarterly Star Performers awarded with packages like Dinner-with-Family, Stay-over-the-Weekend at Five Star Hotels by Hewitt Packard.
3. Spouses invited to give a pleasant surprise to employees on anniversary and birthday at Hewitt.
2. Quarterly Star Performers awarded with packages like Dinner-with-Family, Stay-over-the-Weekend at Five Star Hotels by Hewitt Packard.
3. Spouses invited to give a pleasant surprise to employees on anniversary and birthday at Hewitt.
Culture Consciousness
The best companies are all sharply focused on their culture and are conscious of how culture shapes systems and behaviors.
The best example for that is an initiative Fun @ Work Cadbury Annual Theme identified, being a reflection of company's corporate goals. Celebration Calendar built around the theme is to ensure at least one event per month.
1. On Company Day, employees are encouraged to interact with consumers and bring back new ideas.
2. Worm controversy overcomes through 'Delivering Smiles'.
3. Specific days like Traditional Day, etc., introduced.
2. Worm controversy overcomes through 'Delivering Smiles'.
3. Specific days like Traditional Day, etc., introduced.
Training & Development
1. Individual Training needs, performance and targets are freshly evaluated each quarter.
2. e-Learning Portal to provide a choice of whole range of topics from Communication to Project Management to Strategic Planning - FEDEX, HEWITT.
3. Rotational Development Program to provide cross-functional exposure to junior & mid-level staff.
4. Mentoring Program promotes diversity - mentor from different department.
5. Employees spend 150 minutes a month on Kaizen & Behavioral Training - Classic Stripes.
2. e-Learning Portal to provide a choice of whole range of topics from Communication to Project Management to Strategic Planning - FEDEX, HEWITT.
3. Rotational Development Program to provide cross-functional exposure to junior & mid-level staff.
4. Mentoring Program promotes diversity - mentor from different department.
5. Employees spend 150 minutes a month on Kaizen & Behavioral Training - Classic Stripes.
Recruitment
1. Employee Referral Scheme.
2."Interview over a Meal" - Creating comfort level.
3. Congratulating Parents on final selection of a candidate adopted by Max New york Life.
4. Job openings are posted internally and anybody can apply for an opening two levels above his current designation, an initiative taken by BSL, are some of the best HR practices in recruitment
2."Interview over a Meal" - Creating comfort level.
3. Congratulating Parents on final selection of a candidate adopted by Max New york Life.
4. Job openings are posted internally and anybody can apply for an opening two levels above his current designation, an initiative taken by BSL, are some of the best HR practices in recruitment
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