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UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

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Under this Act, on completion <strong>of</strong> 5 years <strong>of</strong> service, the employees are entitled to gratuity<br />

payable at the rate <strong>of</strong> 15 days wages for each completed year <strong>of</strong> service subject to a<br />

maximum <strong>of</strong> Rs. 3.5 lakhs with effect from September 1997.<br />

Industrial Amity and Peace<br />

The Government has passed Industrial Disputes Act 1947. According to this Act,<br />

“industrial dispute’ means “any dispute or difference between employers and employees<br />

employers and workmen, or between workmen and workmen, which is connected with the<br />

employment or non-employment or the terms <strong>of</strong> employment and conditions <strong>of</strong><br />

employment <strong>of</strong> any person”.<br />

There are elaborate provisions relating to ‘Strikes and Lock-outs’. The Act also has<br />

created machinery for prevention <strong>of</strong> industrial disputes. They are as follows:<br />

i. Works committee<br />

ii. Standing orders<br />

iii. Code <strong>of</strong> discipline<br />

For settlement <strong>of</strong> industrial disputes the mechanism are<br />

1. Conciliation<br />

2. Arbitration<br />

3. Adjudication<br />

For adjudication Labour Court, Industrial Tribunal and National Tribunal are<br />

setup. The legal provisions are not elaborated as we discuss how Government helps human<br />

resources and their rights through legislative framework.<br />

Trade Union Act 1926, gives permission to form and register Trade Unions with<br />

rights and duties, to strengthen their bargaining power and for obtaining rightful<br />

concessions from management.<br />

MNC and HR Practices<br />

Globalization <strong>of</strong> trade and business is at the peak now. India is a paradise for<br />

marketing and destination for s<strong>of</strong>tware business. FDI is pouring in. Indian business houses<br />

are extending their frontiers to other countries and MNCs are eying India. Under these<br />

conditions <strong>of</strong> global perspective <strong>HRM</strong> practices have gained greater significance. Business<br />

process outsourcing (BPO) is the order <strong>of</strong> the day. The technical and management people

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