Equal Remuneration Act 1976

Section 1: Commencement:

• Come into force on 8th March 1976.
• It extends to whole of India

Section 2: Important Definitions under this act:

Section 2(a) - Appropriate Government:

1. in relation to any employment carried on by or under the authority of central government, or a railway administration, or in relation to a banking company, a mine, oilfield or major port or any corp established by or under a central government, The Central Government., And,
2. in relation to any other employment, The State Government.

Section 2(c) - Employer:

has the meaning assigned to it in clause (f) of section 2 of Payment of Gratuity Act 1972, which states:

'Employer' means, in relation to any establishment, factory, mine, oilfield, plantation, port, railway company or shop-

1. belonging or under control of central or state government - a person appointed by the appropriate government for the supervision and control of employees or when no on has been appointed, the head of the ministry or department concerned.
2. belonging or under control of local authority -  a person appointed by such authority for the supervision and control , if not appointed, then the Chief Executive Officer of the local authority.
3. In any other case, person, or authorized person who has the ultimate control over the affairs of the establishment, factory, mine, oilfield, plantation, port, railway company or shop and where the said affairs are entrusted to any other person whether called a manager, managing director or by any other name.

Section 2(d) - 'Man' & 'Woman':

male and female human beings, respectively, of any age.

Section 2(e) - Notification:

notification published in the official gazette.

Section 2(g) - Remuneration:

means the basic wage or salary, and any additional emoluments whatsoever payable, either in cash or in kind, to a person employed in respect of employment or work done in such employment, if the terms of the contract of employment, express or implied, were fulfilled.

Section 2(h) - Same work or work of similar nature:

Work in respect of which the skill, effort and responsibility required are the same, when performed under similar working conditions, by a man or woman and the difference, if any, not of practical importance.

Section 2(i) - Worker:

a worker in any establishment or employment in respect of which this act has came into force.

Section 3 - Act to have overriding Effect

Section 4 - Duty of Employer to Pay Equal Remuneration to Men & Women Workers for Same Work or Work of Similar Nature

Section 5 - No Discrimination to be made while recruiting Men & Women Workers

Section 6 - Advisory Committee:

• For the purpose of providing increasing employment opportunities for women
• established by appropriate government, to advice it with regard to the extent to which women may be employed in such establishment as the central government may, by notification, specify in this behalf.
• consist atleast 10 persons, to be nominated by appropriate government, of which one half shall be women.

Section 7 - Power of Appropriate Government to appoint authorities for hearing and deciding claims and complaints:

• Appropriate government appoints such officers, not below the rank of a Labor Officer, as it thinks fit to be the authorities for  the purpose of hearing and deciding complaints with regard to contravention of any provision of this act, claims arising out of non payment of wages at equal rates to men and women for the same work or work of similar nature.
• define the local limits within which each such authority shall exercise its jurisdiction
• every authority shall have all the powers of civil court under the code of civil procedure, 1908, for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of documents.
• every such authority shall be deemed to be a civil court for all the purposes of section 195 and chapter XXVI of code of criminal procedure, 1973

Section 8 - Duty of Employers to Maintain Registers

Section 9 - Inspector:

• appointed by appropriate government
• for the purpose of making an investigation as to whether the provisions of this act, are being complied with by employers and may define local limits within which an inspector may make such investigation.
• every inspector shall to be deemed to be a public servant
• an inspector may, at any place, within the local limits of his jurisdiction-
• enter at any reasonable time, any building, factory, premises or vessel
• require any employer to produce any register, muster roll or any other document
• take any evidence
• examine the employer, his agent or servant or any other person in charge
• make copies or take extracts from any register or document

Section 10 - Penalties:

1. if employer:
• omits or fails to maintain any register, or
• omits or fails to produce any register, or
• omits or refuses to give any evidence, or
• omits or refuses to give any information,  shall be punishable of simple imprisonment, which can extend upto 1 month or rs. 10,000 or both
2. if, after the commencement of this act, any employer:
• makes any recruitment in contravention of this act, or
• makes any payment of remuneration at unequal rates, or
• makes any discrimination between men and women workers, or
• omits or fails to carry out any direction made by appropriate government under subsection (5) of section 6., shall be punishable with atleast Rs. 10,000, which may extend to Rs. 20,000 or imprisonment at least 3 months, which may extend to 1 years, or both

Section 11 - offences by companies

Section 12 - Cognizance & Trial of Offences

Section 13 - Power to make Rules

Section 14 - Power of Central Government to give Directions

Section 15 - Act not to apply in certain cases:

Nothing in this act shall apply - 

• to cases affecting the terms and conditions of a woman's employment in complying with the requirements of any law giving special treatment to women, or
• to any special treatment accorded to women in connection with - 
• the birth or unexpected birth of a child, or
• the terms and conditions relating to retirement, marriage or death or to any provision made in connection with the retirement, marriage or death.

Section 16 - Power to make Declaration

Section 17 - Power to remove Difficulties

Section 18 - Repeal & Saving

Note: Only important sections have described in detail; kindly refer bare act for further clarification

Models of Human Resource Management (Part II)

The Guest Model:

It was developed by David Guest in 1997 and claims to be much superior to other models. This model claims that the HR manager has specific strategies to begin with, which demand certain practices and when executed, will result in outcomes. These outcomes include behavioral, performance and financial related. (See Above Figure).

The model emphasizes the logical sequence of six components i.e. HR strategy, HR practices, HR outcomes, Behavioral outcomes, Performance outcomes and Financial outcomes. Looking inversely, financial results depend on employee performance, which in turn is the result of action oriented employee behaviors. Behavioral outcome are the result of employee commitment, quality and flexibility, which in turn are impacted by Hr practices. HR practices need to be in turn with HR strategies which are invariably aligned with organizational strategies.

The Warwick Model:

This model was developed by two researchers, Hendry and Pettigrew of university of Warwick (hence the name Warwick model). Like other models, the Warwick proposition centres around five elements (See Figure):

• Outer Context (macro environmental forces)
• Inner Context (firm specific or micro environmental forces)
• Business Strategy Content
• HRM Context
• HRM Content

This model takes cognizance of business strategy and HR practices (as the Guest Model), the external and internal context (unlike the Guest Model), in which these activities take place, and the process by which such changes take place, including interactions between changes in both context and content. the strength of the model is that it identifies and classifies important environmental influences on HRM. It maps the connection between the external and environmental factors and explores how HRM adapts to changes in the context. Obviously, those organisations achieving an alignment between the external and internal contexts will achieve performance and growth.

Storey Model - Hard HRM - Soft HRM (1989):

Hard HRM:

Focuses on the costs incurred by the human resources of the firm. In this approach:

• workers primarily viewed as a cost to the company
• Individualistic
• rejection/marginalization of industrial relations
• rejection of differences of viewpoints between managers and employees -  these are assumed to be similar
• emphasis on gaining work efficiancies
• sharp financial focus

Soft HRM:

Stresses the human aspect of the firm. Key points of this approach are:

• Workers viewed as exploitable assets.
• more of concern with the employee's views
• emphasis on employee relations
• employee involvement and commitment encouraged
• Humanistic edge of thinking
• development of core employees

Best Practice Model - Johnson (2000):

Johnson (2000) details," the best practice or the high performance work practices are described as Hr methods and systems that have universal, additive and positive effects on organizational performance."

the definition relates to the fact that the best practices that the organization employs, each will add to the previous, thus compounding the resulting performance of the organization. This model is based on universalism. The assumption behind this model is -  a set of practices aimed at high commitment or high performance will benefit whole organization regardless of context.

Elements of Best Practices (Pfeffer - 1998):

• Employment security / Job security
• Sophisticated selection / Selective thinking
• Team Work and decentralization
• High wages linked to organizational performance
• Extensive training
• Narrow status differential
• Communication and employee involvement

Patterson's Model of HRM:

HRM practices can improve organizational performance by:

• Increasing employee skills and abilities
• Prompting positive attitudes and increasing motivation
• Providing employees with extended responsibilities, so that they can make full use of their skills and abilities

Above factors provide a basis for determining 'good' or 'high' performance HRM practices.

Best Fit / Contingency Model:

Argument - "HR strategies become more efficient when it is linked to its surrounding context or environment of the business."

There are two elements in this model:

1. External Fit - the fit is linked to operation strategy / marketing strategy etc. that is, the competitive strategy of overall business. Schuler and Jackson (1987) developed the connection between competitive advantage, employee behaviors and practices.
2. Internal Fit - HR policies and practices must be coherent. Policies which work in opposite direction should be avoided. For example, encouraging team work but rewarding team work.

Models of Human Resource Management (Part I)

The Human Resource Management model contain all human resource activities. When these activities are discharged effectively, they will result in a competent and willing workforce who will help realize organizational goals. There is another variable in HR models - environment. It may be stated that the Human Resource function does not operate in vacuum. It is influenced by several internal and external forces like economic, technological, political, legal, organizational and professional conditions.

• They provide an analytical framework for studying HRM ( for example, situational factors, stakeholders, strategic choice levels, competence).
• They legitimize certain HRM practices; a key issue here being the distinctiveness of HRM practices: "It is not the presence of selection or training but a distinctive approach to selection or training that matters."
• They provide a characterization of HRM that establishes variables and relationship to be researched.
• They serve as a heuristic device -  something to help us discover and understand the world of explaining the nature and significance of key HR practices.

Following are major HRM Models:

1. Matching Model of Fombrun, Tichy & Devanna
2. The Harvard Model
3. The Guest Model
4. The Warwick Model
5. The Storay Model
6. Best Practice Model
7. Patterson's Model
8. Best Fit / Contingency Model

Matching Model of Fombrun, Tichy & Devanna:

This model held that HR system and the organizational structure should be managed in a way that is congruent with organizational strategy. Main focus was on the four functions of HRM i.e. selection, appraisal, development and rewards and their inter relatedness.

This is the first and very simple model that serves as a heuristic framework for explaining the nature and significance of the key HR activities. But it is incomplete as it focuses only on four functions and ignores all environmental and contingency factors that impact HR functions.

The Harvard Model:

The harvard model claims to be comprehensive in as much as it seeks to comprise six critical components of HRM. The dimensions included in the model are: stakeholders interests, situational factors, HRM policy choices, HR outcomes and long term consequences.

• The Stakeholders interests recognize the importance of 'trade offs' between the interests of the owner and those of employees. Trade offs also exists among other interest groups. But this is the challenge of HR manager, who needs to balance the interests of all stakeholders.
• The Situational Factors influence management's choice of HR strategy. the contingent factors included in the model include work force characteristics, management philosophy, labour market, task, technology and laws and social values.
• HRM Policy Choices emphasize the management's decisions and actions in terms of HRM can be fully appreciated only if it is recognised that they result from an interaction between constraints and choices. This model outlines four HR Policy areas:
• Employee Influence - delegated levels of authority, responsibility, power etc.
• HR Flows - recruitment, selection, promotion, appraisal, termination etc.
• Reward System - Pay system, motivation etc.
• Work System - design of work and alignment of people
• These HRM policy choices lead to 4 Cs of HR Policy Outcomes, that have to be achieved:
• Commitment
• Congruence
• Competence
• Cost Effectiveness
• Beer et al (1984)  proposed that long term Consequences  both benefits and costs of HR policies should be evaluated at three levels: Individual, Organizational and Societal. These in turn should be analyzed using the 4 Cs.
• The Feedback Loop is the sixth component of the Harvard Model. as was stated above, situational factors influence HRM policy and choices, and are influenced by long-term consequences. Similarly, stakeholders interests influence HRM policy choices, and in turn, are impacted by long-term consequences (see Figure)

Advantage of the Model (Boxall - 1992)

• Incorporates recognition of a range of stakeholders interests.
• Recognize the importance of 'trade offs' either explicitly or implicitly, between the interests of owners and those of employees as well as between various interests groups.
• Widen the context of HRM to include 'employee influence', the organization of work and the associated questions of supervisory style.
• Acknowledges a broad range of contextual influences on management's choice of strategy. suggesting a meshing of both product market and socio-cultural logic.
• Emphasizes strategic choice-it is not driven by situational or environmental determinism.