2022 question paper
HUMAN RESOURCE DEVELOPMENT AND ORGANIZATIONAL BEHAVIOUR
18 questions
5. Discuss the evolution of organizational behaviour.202214m
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Worked SolutionEvolution of Organizational Behaviour (OB) [14 Marks]
Introduction:
Organizational Behaviour is the systematic study of how individuals and groups act within organizations. Its evolution reflects shifts from focus on machine efficiency to human, behavioural and contingency approaches.1. Early / Classical Era (Pre-1900 to 1930s)
- Scientific Management - F.W. Taylor (1911): Time-and-motion studies, standardization, incentive wage - focus on efficiency but ignored human/social factors.
- Administrative Theory - Henri Fayol: 14 principles of management, functions (Planning, Organizing, Commanding, Coordinating, Controlling).
- Bureaucracy - Max Weber: Ideal rational organisation with hierarchy, rules, impersonality - efficiency through structure.
- Limitation: Treated worker as economic man / machine.
2. Neo-Classical / Human Relations Era (1930s-1950s)
- Hawthorne Studies - Elton Mayo (1924-32, Western Electric): Discovered importance of social factors, informal groups, lighting experiments showed productivity linked to attention and group norms - birth of Human Relations movement.
- Contributors: Mary Parker Follett (conflict integration), Chester Barnard (cooperative systems, acceptance theory of authority).
3. Behavioural Science Era (1950s-1970s)
- Interdisciplinary integration of Psychology, Sociology, Anthropology.
- Key contributors: Maslow (Need Hierarchy, 1943), Herzberg (Two-Factor Theory), McGregor (Theory X & Y, 1960), Likert (Management Systems), Argyris (Maturity-Immaturity), Vroom (Expectancy Theory).
- Focus on motivation, leadership, perception, personality, group dynamics, attitude.
4. Modern Era (1970s onwards)
- Systems Approach: Organization as open system interacting with environment (Katz & Kahn).
- Contingency Approach: No one best way - behaviour depends on situation (Lorsch & Lawrence).
- Organizational Development (OD), TQM, Learning Organization (Senge) and contemporary focus on Culture, Change Management, Empowerment, Emotional Intelligence, Globalization, Diversity, Ethics, Technology & Virtual Teams.
5. Current Trends
OB today emphasizes OB at three levels: Individual (personality, learning, motivation), Group (team, communication, conflict, leadership), Organizational System (structure, culture, change) - with focus on job satisfaction, work-life balance and evidence-based management.
Conclusion: Evolution shows paradigm shift from task-oriented to people-oriented to system-contingency view - making OB a practical, applied behavioural science for enhancing both human well-being and organizational effectiveness.
Era Focus Key Idea Classical Structure & Efficiency One best way Human Relations Social Man Informal groups matter Behavioural Science Motivation & Leadership Interdisciplinary theories Modern System & Contingency It depends on situation Q1a. What is retraining?20222m
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Worked SolutionRetraining [2 Marks]
Definition:
Retraining is the process of providing training to existing employees to make them proficient in new methods, technology, or a different job required due to changes in work, promotion, transfer or obsolescence of old skills.Key Points:
- Purpose: To update outdated skills, handle new machinery/technology (e.g., automation, IT systems), or reallocate surplus staff to new roles.
- Difference from Training: Training is for new employees for initial proficiency; Retraining is for existing employees whose current skills have become obsolete.
- Example: A bank clerk retrained to operate Core Banking Software after computerization; factory workers retrained after introduction of robotics.
Retraining ensures workforce adaptability, reduces redundancy and supports organizational change and redeployment.
Word Count: ~100 words. Textbook reference: Flippo - "Retraining is intended to upgrade employees who have become technologically outdated."
Q1b. Define recruitment.20222m
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Worked SolutionRecruitment [2 Marks]
Definition (Edwin Flippo):
Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. It is a positive process as it attracts a pool of candidates.Key Features:
- Objective: To create a large pool of qualified applicants from which the best can be selected - bridging HR Planning and Selection.
- Nature: Positive process (invites all qualified), continuous, and linking activity.
- Sources: Internal (promotion, transfer, employee referral) and External (advertisement, campus, employment exchange, consultants, e-recruitment).
Process Link: Job Analysis → HR Planning → Recruitment → Selection → Placement.
Recruitment is hunting with a net, Selection is hunting with a spear. i.e., Recruitment attracts many, Selection filters to the best fit.
Word Count: ~105 words.
Q1c. What do you understand by performance management?20222m
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Worked SolutionPerformance Management [2 Marks]
Definition:
Performance Management is a continuous, systematic process of identifying, measuring, developing and aligning employee performance with organizational goals - broader than annual appraisal.Key Features:
- Scope: Goal setting (KRA/KPI) → Continuous monitoring & feedback → Formal appraisal → Coaching & Development → Reward linkage.
- Difference from Performance Appraisal: Appraisal is a once-a-year event/judgement; Performance Management is ongoing cycle of planning, reviewing and improving.
- Objectives: Improve individual & organizational performance, identify training needs, guide promotions/increments and build a performance culture.
Example: OKR framework or Balanced Scorecard where manager and employee jointly set quarterly targets and review monthly.
Authors: Aguinis - "Performance management is a continuous process of identifying, measuring and developing performance."
Word Count: ~115 words.
Q1d. Define negotiation.20222m
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Worked SolutionNegotiation [2 Marks]
Definition (Lewicki):
Negotiation is a purposeful interaction between two or more parties aiming to resolve differences, allocate resources or reach a mutually acceptable agreement through discussion and bargaining.Essentials:
- Process: Give-and-take, dialogue involving proposals, counter-proposals and concessions.
- Types: Distributive (win-lose, fixed pie - e.g., wage bargaining) vs Integrative (win-win, collaborative problem solving).
- Context in HR/OB: Collective bargaining (union vs management), salary negotiation, conflict resolution, vendor deals.
Key Skills: Preparation, BATNA awareness, active listening, persuasion, closing.
Successful negotiation aims for win-win and long-term relationship, not just victory.
Word Count: ~110 words.
Q1e. What is induction?20222m
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Worked SolutionInduction [2 Marks]
Definition:
Induction (also called Orientation or Onboarding) is the process of welcoming and introducing a new employee to the organization, its policies, procedures, culture, co-workers and job to help him adjust quickly and become a productive member.Steps / Contents:
- Introduction to company history, mission, rules & benefits (handbook)
- Introduction to department, boss, colleagues and workplace tour
- Explanation of job duties, safety measures and expectations
Purpose:
Reduces startup anxiety, shortens learning curve, builds sense of belonging, reduces turnover, creates positive first impression.Duration: Few hours to several weeks (formal program). e.g., TCS Initial Learning Programme.
Word Count: ~100 words.
Q1f. List any two functions of a trade union.20222m
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Worked SolutionTwo Functions of a Trade Union [2 Marks]
Definition brief: Trade Union is an organized association of workers formed to protect and promote their common interests.
Any two functions:
- Economic / Collective Bargaining Function: Negotiates with management for higher wages, bonus, allowances, better working conditions, job security and social security.
- Welfare Function: Provides education, legal aid, medical, housing, recreational facilities and safety measures for members and families.
Other valid functions (any two accepted):
- Protective / Militant: Defends workers against victimization, unfair dismissal, exploitation - files grievances, organizes strikes legally.
- Social / Political: Creates sense of solidarity, participates in policy formulation, supports labour legislation, promotes cooperation between labor and management.
- Fraternal / Communication: Acts as channel between management & workers, promotes industrial harmony.
ILO classifies as: Militant, Fraternal, Social-Political.
Example: INTUC/AITUC negotiating 8th Pay Commission demands.
Q1g. What is off-the-job training? Give two examples.20222m
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Worked SolutionOff-the-Job Training (2 Marks)
Definition: Training imparted outside the workplace, away from actual job, during a break from work, usually by experts/external faculty. Emphasis on learning concepts/theories rather than immediate production.
Features: Formal, broader, can handle large groups, costly, more theoretical.
Two Examples (any two):
- Classroom Lectures / Seminars: Theoretical inputs in institute/lecture hall.
- Simulation - Business Games / Case Study / Role Play: Artificial work environment e.g., vestibule training, management games to practise decision-making.
- Other valid examples: Conference, Workshop, Vestibule Training, Sensitivity Training (T-group), e-learning / Programmed Instruction.
Contrast: On-the-job = Coaching, Job Rotation, Apprenticeship at workstation.
Q1h. Define competency management.20222m
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Worked SolutionCompetency Management - Definition (2 Marks)
Competency Management is a systematic HR process of identifying, defining, mapping, assessing and developing the set of knowledge, skills, attitudes and behaviours (KSAOs) required for superior performance in a job/role and aligning them with organizational strategy.
Key elements:
- Competency = underlying characteristic (e.g., communication, leadership, technical skill) that predicts effective performance.
- Includes: Competency mapping → Assessment (gap analysis) → Development (training, coaching) → Integration into Recruitment, Performance Appraisal, Succession Planning, Compensation.
Purpose: Ensure right competencies at right place to achieve competitive advantage; supports HR decisions objectively.
Example: For Sales Manager → competencies: Negotiation, Customer orientation, Team leadership.
Q1i. What is HR planning?20222m
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Worked SolutionHR Planning - Definition (2 Marks)
Human Resource Planning (HRP) / Manpower Planning is the systematic and continuous process of forecasting future demand & supply of HR and planning to ensure that the organisation has right number and right kind of people at right place at right time, at optimum cost, to achieve organizational objectives.
Definitions:
- Coleman: “Process of determining manpower requirements and means for meeting those requirements.”
- Stainer: “Strategy for acquisition, utilisation, improvement and preservation of enterprise’s HR.”
Nature: Future-oriented, continuous, integral to strategic planning, quantitative & qualitative.
Objective: Bridge gap between HR demand-supply, avoid shortages/surplus, control labour cost.
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Q1j. Explain job satisfaction.20222m
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Worked SolutionJob Satisfaction - Explanation (2 Marks)
Job Satisfaction is the positive emotional state / attitude of an employee resulting from appraisal of job experiences and degree to which job fulfils his needs/values. (Locke, 1976)
As per spector: Extent to which people like or dislike their job.
Key aspects:
- Attitudinal: Affective (liking) + Cognitive evaluation
- Multidimensional - satisfaction with: Work itself, Pay, Promotion, Supervision, Co-workers, Conditions (JDI/MSQ facets)
- Determinants: Personality, work values, compensation, job design, leadership, work environment.
Types: Intrinsic (work content) vs Extrinsic (pay, conditions)
Measurement: Questionnaires (Minnesota Satisfaction Questionnaire), Job Descriptive Index, interviews.
High satisfaction → low turnover, higher OCB & morale; needs continuous monitoring.
Q2. What is the significance of HR in today's global environment? Discuss the role of HR manager in today's organisation?202214m
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Worked SolutionSignificance of HR & Role of HR Manager (14 Marks)
A. Significance of HR in Today's Global Environment - 7 Marks
In globalized, knowledge-based economy, HR is the only sustainable competitive advantage.
- Globalisation & Competitive Advantage: Talent is differentiator when technology/capital are imitable. HR creates distinctive competencies.
- Managing Cultural Diversity: Global workforce demands cross-cultural management, DEI, inclusion policies to avoid conflicts and leverage diversity.
- Knowledge Economy & Innovation: Intellectual capital, R&D, creativity dependent on HR skills; HR fosters learning organization.
- Technological Change: Automation/AI requires reskilling, upskilling, change management.
- Quality & Productivity: TQM, Lean, Customer satisfaction via empowered, satisfied employees.
- Legal & Ethical Compliance: Labour laws, ILO, CSR, employee rights across countries.
- Employer Branding & Talent War: Attraction/retention of scarce global talent, gig economy, virtual teams.
- Sustainable Growth: HR ensures succession, leadership pipeline for continuity.
Ulrich: HR shifts from administrative to strategic asset.
B. Role of HR Manager in Today's Organisation - 7 Marks
As per Dave Ulrich Model + Traditional Functions:
Strategic Roles:
- Strategic Partner: Aligns HR strategy with business strategy; participates in strategic planning, workforce forecasting.
- Change Agent: Leads change, OD, digital transformation, culture building.
- Human Capital Developer: Manages intellectual capital, talent management, competency development.
- Employee Champion/Advocate: Voice of employee, welfare, grievance handling, engagement.
Functional Roles (MHRM):
- Acquisition: HR Planning, Recruitment, Selection
- Development: Training, Career Development, Performance Appraisal, Potential Appraisal
- Motivation/Compensation: Wage-salary, benefits, incentives, job satisfaction, QWL
- Maintenance/Integration: IR, Trade union relations, Health/Safety, Compliance, Social security
- Other: HRIS, HR Analytics, Diversity Management, CSR, Global mobility (expatriate management).
Today's Emerging Role:
- Business Partner, Data-driven HR, Ethical guardian, Coach/Counsellor to line managers.
Conclusion: From personnel administrator to Strategic Business Partner - HR Manager now is key to global survival, innovation and people-centric growth.
Q3. Discuss the errors that may take place in assessing employee performance.202214m
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Worked SolutionErrors in Performance Appraisal
** Meaning:** Performance appraisal is systematic evaluation of employee job performance. Errors are systematic biases by raters that distort objective assessment, leading to unfair decisions on promotion, pay, training.
** Major Errors/Biases (with examples & remedies):**
1. Halo Effect & Horns Effect:
- One positive trait influences all ratings positively (Halo) e.g., punctual employee rated high on creativity also, though not creative. Opposite is Horns (one negative dominates).
- Remedy: BARS, evaluate each dimension separately, rater training.
2. Leniency Error: Tendency to rate everyone high to avoid conflict or appear nice. All employees 'Good/Excellent'.
- Opposite is Strictness Error (rating everyone low).
- Remedy: Forced distribution, calibration meetings.
3. Central Tendency Error: Rater avoids extremes, clusters all ratings in middle (Average - 3/5). Due to fear of justifying extremes or lack of knowledge.
- Remedy: Ranking, forced choice, training to differentiate.
4. Recency Effect: Only recent performance (last 1-2 months) considered, ignoring whole appraisal period. An employee who improved recently gets high rating despite poor year.
- Opposite Primacy Effect (first impression dominates).
- Remedy: Maintain continuous diary/critical incident record.
5. Primacy Effect: First impression (early in period) colours entire appraisal.
6. Contrast & Similarity Bias:
- Contrast Error: Rating influenced by comparison with other employees rather than standards. A mediocre employee looks excellent after appraising poor performers.
- Similar-to-me / Similarity Error: Rater favours those similar to himself (same college, caste, interests).
7. Stereotyping: Generalizing based on group (gender, age, region) e.g., "women less committed", "old employees resistant to tech".
8. Attribution Bias: Attributing poor performance to internal factors (lazy) ignoring external (faulty machine, lack of resources).
9. Spillover / Past Performance Error: Past appraisal influences current one, even if performance changed.
10. Personal Bias / Favoritism / Political Motive: Rating to punish critics or reward loyalists.
11. Status Effect: Higher-level jobs rated more leniently than lower-level.
** Overcoming Errors - Organizational Measures:**
- Rater Training (Frame-of-Reference): Workshop on biases, rating scales understanding.
- Use Modern Methods: 360-degree feedback (multiple raters), MBO (objective goals), BARS (behavioural anchors reduce subjectivity), Assessment Centres.
- Multiple Raters & Calibration Committee: HR reviews distribution.
- Maintain Documentation: Critical Incident Method throughout year.
- Clear Standards & Job Analysis Based KRA/KPI: Objective criteria.
- Confidentiality & Feedback: Separate evaluation and development discussion.
Consequences of Errors: Demotivation, perceived injustice, high turnover, legal challenges, wrong manpower decisions.
Conclusion: No appraisal is 100% error-free, but awareness, training, objective tools (MBO, BARS, 360°) and systematic process minimize biases and ensure appraisal fulfills its administrative and developmental purpose.
Q4. What is the need for workers' participation in management? Explain any three methods through which workers can participate in management.202214m
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Worked SolutionNeed for Workers' Participation in Management & Methods (14M)
Meaning: Workers' Participation in Management (WPM) is sharing of decision-making power by rank-and-file workers with management through joint councils, committees. It's mental/emotional involvement beyond collective bargaining - workers feel they belong.
Definition (Keith Davis): "An individual's mental and emotional involvement in a group situation that encourages him to contribute to group goals."
Need / Objectives / Importance:
Psychological Need - Recognition & Esteem: Fulfills Maslow's esteem/self-actualization, gives sense of importance, reduces alienation (Marx). Improves job satisfaction.
Industrial Democracy & Constitutional Ideal: Article 43A of Constitution directs State to secure workers participation. Democratizes work-life, reduces class conflict.
Reduces Industrial Conflict: Communication channel prevents misunderstanding that leads to strikes/gheraos. Joint decisions are better accepted, less grievance.
Better Decisions & Productivity: Workers know shop-floor realities (waste, machine faults) - their suggestions improve quality, efficiency, TQM/Kaizen. Eg: Toyota's Quality Circles.
Mutual Trust & Morale: Builds cooperation, loyalty, commitment instead of adversarial relation. Reduces turnover/absenteeism.
Facilitates Change: Participation reduces resistance to new technology, restructuring because workers co-own decision.
Development of Human Resources: Trains workers in managerial skills, prepares future leaders, personnel development.
Social Justice & Equity: Gives workers share in management of enterprise they build, fairer.
Methods / Forms of WPM in India:
1. Works Committee (Industrial Disputes Act 1947, Sec 3):
- Mandatory in establishments with ≥100 workers, equal representatives of employer & workmen.
- Function: Discuss conditions of work, amenities, safety, to promote cordial relations. Consultative only, often ineffective due to advisory nature.
2. Joint Management Councils (JMCs) (1958):
- For units ≥500 workers, bipartite body (max 12 members, 50% workers). Handles welfare, safety, training, hours, rewards, productivity.
- Failed due to union rivalry, management apathy, lack of spirit.
3. Joint Councils (1975 Scheme):
- Two-tier: Shop Floor Councils (≤500 workers per shop) and Joint Councils at enterprise level. Deal with production, efficiency, fixed monthly targets. Chairman from management.
4. Board Level Participation:
- Worker Director on Board (e.g., 1970 Govt. scheme, BHEL, Hindustan Latex). Workers voice in strategic decisions (investment, policy). Rare, often tokenism, needs training.
5. Quality Circles / Kaizen Groups: Small voluntary groups (8-10 workers) meet weekly to solve quality/productivity problems, present to management. Huge success in Japan, adopted by BHEL.
6. Suggestion Schemes & Employee Stock Ownership (ESOP):
- Suggestion boxes, rewards for ideas; ESOP gives ownership stake, aligns interests.
7. Co-partnership / Complete Control: Workers become shareholders (cooperative - e.g., Kamani Tubes revival), or full workers' cooperatives.
8. Collective Bargaining as Participation: Indirect - through unions negotiating wages/conditions.
Success Conditions & Indian Experience:
WPM largely failed in India except few units (SAIL, Tata Steel JDCs) due to: multiplicity of unions, lack of education, management not sharing real power, lack of trust. Success needs: strong single union, mutual faith, training, top support, sharing of information, timely implementation.Conclusion: Need is undeniable - from productivity to democracy. Methods range from consultative (Works Committee) to administrative (JMC) to decisive (Board level). For Make-in-India and competitive quality, genuine participative culture beyond legal formality is essential.
Q6. What is organizational politics? Discuss the factors contributing to organizational politics.202214m
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Worked SolutionOrganizational Politics: Meaning & Factors Contributing (14M)
Meaning: Organizational Politics refers to activities/actions by individuals/groups to acquire, develop, and use power and influence to advance personal interests at expense of organizational goals, when there is uncertainty or disagreement. It's informal, non-sanctioned behaviour.
- Pfeffer: "Politics involves power in action."
- Nature: Arises when resources are scarce, goals ambiguous, decisions subjective. Can be functional (career advancement through networking) but often dysfunctional (back-biting).
- Legitimate vs Illegitimate Politics: Legitimate (following rules to gain power - coalition building) vs Illegitimate (sabotage, whistle-blowing extremes).
Factors Contributing to Organizational Politics:
A. Individual Factors:
High Need for Power, Machiavellianism: Personalities high in Mach (manipulative, cool) indulge more (Machiavelli - end justifies means). Also high achievers.
Internal Locus of Control & Low Self-Monitoring: Those believing they control outcomes politic more.
Scarcity of Personal Alternatives: When job mobility low, people politic to secure position.
B. Organizational Factors (Major):
Pyramidal Structure & Hierarchy: Higher up fewer positions → competition, bottleneck triggers rivalry. Tall structure increases politics.
Scarcity of Resources: Limited promotion, budget, office space, foreign posting → competition, forming coalitions, lobbying. Example: Two departments fighting for same Capex.
Subjective Criteria for Evaluation & Rewards: When appraisal/promotion criteria vague (not MBO/BARS), favouritism, halo bias allow politics. Objective criteria reduces politics.
Low Trust Climate: Mistrust among employees/management breeds rumours, defensive politics.
Role Ambiguity & Unclear Goals: When goals not clear, people define own goals politically. E.g., unclear KRA leads to credit-stealing.
High Performance Pressures: Zero-sum rewards (forced ranking) intensify competition → politicking.
Democratic Decision Making & Participative Systems: Paradoxically, participative opens politics as many stakeholders lobby (but reduces autocratic abuse).
Organizational Change: Restructuring, mergers create uncertainty over power → heightened politics for survival.
C. Environmental Factors:
- External uncertainty, culture valuing politics, politicized unions.
Consequences:
- Positive: Career advancement, better decisions through coalition (if functional).
- Negative: Reduced job satisfaction, turnover, stress, biased decisions, reduced performance.
Managing Politics (brief):
- Clear goals, objective appraisal (MBO), open communication, participative leadership but within rules, ethical culture, zero tolerance for dysfunctional politics.
Conclusion: Politics is inevitable in every organization where there are competing interests and scarce resources. Managers should not eliminate politics (impossible) but channel it functionally by creating transparency, fairness, trust and clear performance standards, as recommended in Q117 where answer is All of the above (power struggles, individual interests, scarcity).
Q7. What is personality? What factors determine personality?.202214m
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Worked SolutionWhat is Personality?
Definition: Personality is the sum total of ways in which an individual reacts to and interacts with others. According to Gordon Allport, “Personality is the dynamic organization within the individual of those psychophysical systems that determine his unique adjustments to his environment.”
According to Robbins, “Personality is the relatively stable set of characteristics that influence an individual’s behaviour.”
It implies consistency – person behaves somewhat consistently across situations and time. It includes physical appearance, intelligence, attitude, temperament, character and social behaviour. Personality is unique, relatively stable, learnt and influenced by both heredity and environment.
Nature / Characteristics:
- Unique and specific – no two persons identical
- Reflects inner and outer behaviour
- Dynamic and evolving, yet stable pattern
- Goal-directed
- Integrated whole of traits
Major Theories: Trait Theory (Big Five – OCEAN: Openness, Conscientiousness, Extraversion, Agreeableness, Neuroticism), Psychoanalytic (Freud), Humanistic (Maslow, Rogers), Social Learning Theory (Bandura).
Factors Determining Personality
Personality is product of Heredity × Environment × Situation. Important determinants:
1. Biological / Hereditary Factors
- Heredity: Physical stature, facial attractiveness, gender, temperament, energy level transmitted genetically. Twin studies show heredity explains ~50% personality.
- Brain and Physical Structure: Nervous system, hormonal balance affect temperament.
- Constitution: Sheldon’s somatotypes – endomorph, mesomorph, ectomorph linked to temperament.
2. Family Factors
Most crucial environmental factor, especially early childhood:
- Parental behaviour, socio-economic status, family size, birth order (first-born more responsible), child-rearing practices (democratic vs authoritarian). Identification with parents shapes values and habits.
3. Social and Cultural Factors
- Culture: Determines norms, beliefs, values, independence vs collectivism. Western culture fosters individualism; Indian culture emphasizes family dependency.
- Socialization: Interaction with relatives, friends, peers, school, neighbourhood teaches roles, responsibilities and social skills.
- Social Group Membership: Reference groups, community influence attitudes.
4. Situational Factors
Personality is situational – same person may be dominant in office but submissive at home. Specific situations (stress, crisis, success) demand different behaviour. Modern contingency view emphasizes Person × Situation interaction.
5. Other Factors
- Education and Experience: Learning, successes/failures, life experiences shape self-concept.
- Organization: Role, organizational climate, job characteristics influence personality at work (e.g., bureaucratic organization may make person more disciplined).
- Psychological Factors: Intelligence, motivation, interests, perception.
Conclusion: Personality is neither fully innate nor fully learned. As per Lewin’s formula – Behaviour is function of Person and Environment. For managers, understanding Big Five traits helps in selection, job fit, team building and leadership development. Personality can be shaped but not drastically changed.
Q8. - Elaborate the bargaining strategies in negotiation process.202214m
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Worked SolutionQ68 - Bargaining Strategies in Negotiation Process (14 Marks)
1. Introduction
Bargaining strategy is the overall plan or orientation a party adopts to achieve its goals in negotiation. Choice of strategy depends on importance of substantive issue vs relationship, time, power, and whether parties seek value-claiming or value-creating. Walton & McKersie (1965) identified four sub-processes; Fisher & Ury gave principled negotiation.
2. Two Basic Approaches
Distributive Bargaining (Competitive / Claim Value) Integrative Bargaining (Collaborative / Create Value) Fixed pie, win-lose Expand pie, win-win Positions focused Interests focused Secrecy, conceal information Openness, share information Short-term, adversarial Long-term, trust building Example: Wage rate for this year Example: Gain-sharing, flexible work design Most real negotiations are mixed-motive – both claiming and creating.
3. Major Bargaining Strategies (Thomas-Kilmann Model + IR Context)
A. Competitive / Contending Strategy (Win-Lose, High Assertiveness - Low Cooperation)
- Goal: Maximize own gain at opponent’s cost
- Tactics: Extreme opening demands, anchoring, bluffing, threatening strike/lockout, withholding information, time pressure, good-cop bad-cop
- When useful: One-time transaction, abundant alternatives, opponent weak
- Risk: Damages relationship, impasse, retaliation
B. Collaborative / Problem-Solving Strategy (Win-Win, High Assertiveness + High Cooperation)
- Goal: Find solution satisfying both sides’ underlying interests
- Tactics: Open communication, identifying superordinate goals, brainstorming options, logrolling (trade issues by priority), bridging, objective criteria
- Process: Separate people from problem, focus on interests not positions (Fisher & Ury)
- When useful: Long-term relationship, trust possible, multiple issues
- Example: Union accepts automation → management guarantees retraining + no retrenchment + productivity bonus
- Most preferred for IR and HRD.
C. Accommodative / Soft Strategy (Lose-Win, Low Assertiveness - High Cooperation)
- One party yields to preserve relationship
- Tactics: Concessions, generosity, downplaying differences
- When useful: Issue more important to other party, goodwill investment
- Risk: Exploitation, appears weak
D. Avoiding Strategy (Lose-Lose, Low Assertiveness - Low Cooperation)
- Withdraw, postpone, “agree to disagree”
- When useful: Issue trivial, need cooling-off, information inadequate
- Risk: Conflict festers, appears in IR as delaying tactics – leads to union frustration
E. Compromising / Compromise Strategy (Moderate Assertiveness & Cooperation)
- Both sides make moderate concessions, split the difference
- Tactics: Middle ground, “meet halfway”
- When useful: Time pressure, equal power, temporary settlement needed
- Limitation: Sub-optimal, neither fully satisfied; encourages horse-trading
4. Walton & McKersie’s Four Bargaining Strategies (Specific to Collective Bargaining)
- Distributive Bargaining: Resolving conflicts of interest (wages, bonus)
- Integrative Bargaining: Solving common problems (safety, productivity)
- Attitudinal Structuring: Shaping relationship and trust (from adversarial to cooperative)
- Intra-organizational Bargaining: Building consensus within each side (union leaders convincing members, HR convincing management)
5. Fisher & Ury’s Principled Negotiation (Harvard Model) - Alternative Strategy
- Separate people from problem
- Focus on interests, not positions
- Invent options for mutual gain
- Insist on objective criteria
This converts distributive into integrative.
6. Tactics Associated with Strategies
- Anchoring, Boulwarism (take-it-or-leave-it, GE), Whispsawing
- Nibbling, Chicken, Deadline effect
- BATNA leverage: Improving Best Alternative To Negotiated Agreement strengthens bargaining power
7. Choice of Strategy - Contingency Factors
- Time horizon: Short → competitive; Long → collaborative
- Power balance: Equal → integrative viable
- Trust level, Information availability, Cultural norms
- Issue importance: Vital → competitive; Routine → compromise/avoid
8. Application to Indian Industrial Relations
Historically adversarial distributive bargaining (strikes over wages). Post-1991, shift towards integrative strategies: productivity-linked wages in Maruti Suzuki, Tata Steel’s joint consultation. Yet many SMEs still competitive. Labour codes (Industrial Relations Code 2020) encourage conciliation → integrative.
9. Conclusion
No single best strategy. Effective negotiator is strategically flexible – starts with collaborative intent but can switch to competitive if exploited, and uses compromise to break deadlock. Modern HRD emphasizes integrative, principled bargaining to build harmonious IR, align employee-employer goals and sustain organizational performance. For exam, draw Thomas-Kilmann 2x2 matrix (Assertiveness vs Cooperativeness) plotting 5 strategies.
Q9. Discuss the role of the State in industrial relations..202214m
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View this question on its own page →Discuss the role of the State in industrial relations..
Worked SolutionQ69 - Role of State in Industrial Relations (14 Marks)
1. Introduction
Industrial Relations (IR) is trilateral: Employers – Employees/Trade Unions – State. In Dunlop’s systems model, State provides context, rules and ideology. In developing economy like India, State is not neutral referee but active partner, protector, employer and regulator, especially after independence and under new Labour Codes 2020.
2. Why State Intervention?
- Correct power imbalance (employer stronger)
- Protect weaker sections, ensure social justice and industrial peace
- Prevent exploitation, regulate conditions (hours, safety, wages)
- Promote economic growth, control inflation, avoid man-days loss from strikes
- Constitutional mandate (Directive Principles Art 38, 39, 41-43)
3. Roles of the State – Detailed
A. State as Legislator / Law-Maker
Frames labour laws to set minimum standards. Indian framework:
- Protective: Factories Act 1948, Minimum Wages Act 1948, Payment of Wages 1936, Equal Remuneration 1976
- Regulatory: Industrial Disputes Act 1947, Trade Unions Act 1926, Industrial Relations Code 2020
- Social Security: ESI 1948, EPF 1952, Gratuity 1972, Maternity Benefit 1961, Code on Social Security 2020
- Welfare & Safety: Labour Welfare, OSH Code 2020
Example: Fixed 8-hour day, prohibition of child labour – all state legislated.
B. State as Employer (Model Employer)
- Public sector directly employs ~20 million. Expected to set example: fair wages (Pay Commission), job security, model standing orders, participative forums (Joint Management Councils)
- PSU wage settlements (SAIL, BHEL) become trend-setter for private sector
C. State as Conciliator / Mediator
- Machinery under ID Act: Conciliation Officer, Board of Conciliation, Labour Courts, Industrial Tribunals, National Tribunal
- State appoints Conciliation Officers (Sec 4 ID Act) to mediate disputes before strike/lockout becomes legal; tries to bring compromise within 14 days
- If fails → reference to adjudication
D. State as Arbitrator / Adjudicator
- Voluntary Arbitration (Sec 10A) and Compulsory Adjudication via government reference to Labour Court/Tribunal – award binding on parties
- Resolves interest and rights disputes authoritatively, prevents prolonged industrial warfare
- Judiciary interprets laws – Supreme Court guidelines (e.g., Bangalore Water Supply case widened “industry”)
E. State as Regulator & Controller
- Registers trade unions, certifies standing orders, regulates lay-off, retrenchment, closure (Chapter V-B ID Act – permission for 300→100 workers threshold under new Code)
- Inspectorates enforce compliance (factory inspectors, PF commissioners)
F. State as Protector & Promoter of Weaker Party
- Minimum wage fixation, abolition of bonded labour, unorganised workers’ social security (e-Shram)
- Promotes workers’ participation in management (Sec 3 IR Code), workers’ education (CBWE)
G. State as Economic Manager & Harmoniser
- Macro policies: Incomes policy, price controls, employment policy, skill mission
- Tripartite bodies: Indian Labour Conference (ILC), Standing Labour Committee, Wage Boards (journalists, coal), National/State Labour Advisory Boards – where government, employer associations (FICCI, CII) and central unions (INTUC, BMS, AITUC) concert policy
- Promotes collective bargaining but regulates unfair labour practices (Schedule V ID Act – now under IR Code)
4. Evolution in India
- Pre-1991: Highly interventionist, protective, adjudication-heavy → led to rigidity, pendency (~15,000 cases)
- Post-LPG 1991 & Labour Codes (2019-20): Shift to facilitator & enabler – ease of business, fixed-term employment, recognition of unions, social security for gig workers, but critics fear dilution of protection
- International influence: ILO conventions ratified, pressure to meet global labour standards
5. Critical Evaluation
Positive: Industrial peace (man-days lost fell from 33M in 1980s to <2M now), minimum standards, judicial recourse for un-unionised workers.
Criticisms: Over-regulation, inspector raj, delays in adjudication (5-10 years), multiplicity & complexity (44 laws → 4 Codes still pending implementation), bias accusation (state as employer vs regulator conflict), poor coverage of 93% informal sector.6. Conclusion
State is umpire, player and rule-maker. In globalised era, role is moving from controller to facilitator – ensuring protective minimums, enabling bipartite negotiation, and providing social safety net, while allowing flexibility for competitiveness. Balanced IR needs less adjudication, more conciliation-mediation and effective tripartism.
For 14M diagram: Triangle Employers-Workers-State with State at top, arrows showing legislation, conciliation, adjudication, participation, protection flowing downwards; timeline 1947→1991→2020.
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