INDUSTRIAL RELATIONDirectorate of Distance Education MBA Paper 4.33 ALAGAPPA UNIVERSITY KARAIKUDI – 630 003 Tamilnadu
Dear Learner,Greeting from Alagappa UniversityWe extend a very warm welcome to you as a Student of Distance Education ofAlagappa University. We appreciate your interest in enrolling for MBA Programme.The Programme content is designed to broaden the business acumen, administrativecapacity and sharpen the analytical skill of the student.You are instructed to go through the course materials carefully and thoroughly to havebetter understanding of the subject. You are advised to attend the Personal ContactProgrammes to have better clarity on the subject.At the end of the each unit, the review questions are given to enable you to prepare forExaminations. The Model Question Paper is given at the end of the course materialfor reference and practice.We wish you all the best in your endeavour for successful completion of theprogramme. Director Directorate of Distance Education Alagappa University Karaikudi, Tamilnadu.
MBA PAPER 4.33 INDUSTRIAL RELATIONS SYLLABUSUNIT 1 Industrial Relations: Concept – Definition – Significance – Objectives – Scope – Approaches – Principles of good industrial relations – Role of State, Employers and the Unions in industrial relation.UNIT 2 Trade Unionism and Industrial Relations: Labour movement – Concepts – Trade union movement – Development of trade unionism in Indian – Functions and problems of trade unions. International Labour Movement – International Confederation of Free Trade Unions (ICFTU) – World Federation of Trade Unions (WFTC) – International Labour Organisations (ILO) – Origin, history, objectives and functions.UNIT 3 Industrial Disputes: Meaning – Causes – Forms – Industrial relations machinery – Joint consultation – Works committee – Conciliations – Court of Enquiry – Voluntary arbitration – Adjudication. Employee Discipline: Definition – Causes of indiscipline – Code of discipline – Disciplinary procedure – Code of conduct. Grievance Handling: Meaning of grievances – Causes of grievances – Guidelines for grievance handling – Grievances redressal procedures.UNIT 4 Worker’s Participation in Management: Meaning – Significance – Forms – Situations in India. Collective Bargaining: Meaning – Significance – Principles – Process – Training methods – Evaluation of training and retraining. Wage Administration and Industrial Relations – Wage policy – Objectives – Wage regulation machinery – Wage Board: Growth and development – Composition and functions – Evaluation of wage bonds.UNIT 5 Employee Communication: Meaning - Significance - Types – Barriers – Methods of overcoming barriers – Principal of effective communication - Employee Education and Training – Concept – features – Aims and objects – Contents – Teaching techniques – Training Schemes.
UNIT 6 Employee health, safety and security: Meaning – Significance –Programmes – Employee Counseling: Meaning – Significance – Types and Process –Conflict management: Meaning – Types of conflict episode – management of conflict– Quality circle: Meaning – Objectives – Techniques.REFERNCES 1. Bhagoliwal TN, personal Management and Industrial Relations, Agra Publ. 2. Arun Monappa, Industrial Relations, Tata Mc Graw Hill. 3. Michael V P, HRM and Human Relations, Himalaya. 4. Mamoria and Mamoria, Dynamics of Industrial Relations in India, Himalaya. Course Material prepared by - Dr. SM. Chockalingam Professor and Head Debt. Of Commerce (DDE) Annamalai University, Annamalainagar.
CONTENTSUNIT – I 1. Industrial Relations – Introduction 2. Labour And The ConstitutionUNIT – II 3. Trade UnionismUNIT – III 4. Industrial Disputes 5. Grievances Handling 6. Employee DisciplineUNIT – IV 7. Workers’ Participation in Management 8. Collective Bargaining 9. Wage Administration and Industrial RelationsUNIT – V 10. Employee Communication 11. Worker’s Education and TrainingUNIT – VI 12. Industrial Health and Social Security 13. Employee Safety Programme 14. Employee Counseling 15. Conflict Management 16. Quality Circles
UNIT – I1. Industrial Relations – Introduction2. Labour and The Constitutions
Lesson 1 Industrial Relations – IntroductionIndustrial relations constitute one of the most delicate and complex problems of themodern industrial society. This phenomenon of a new complex industrial set-up isdirectly attributable to the emergence of ‘Industrial Revolution”. The pre-industrialrevolution period was characterized by a simple process of manufacture, small scaleinvestment, local markets and small number of persons employed. All this led to closeproximity between the manager and the managed. Due to personal and directrelationship between the employer and the employee it was easier to securecooperation of the latter. Any grievance or misunderstanding on the part of eitherparty could be promptly removed. Also, there was no interference by the State in theeconomic activities of the people. Under such a set-up industrial relations weresimple, direct and personal. This situation underwent a marked change with theadvent of industrial revolution – size of the business increased needing investment ofenormous financial and human resources, there emerged a new class of professionalmanagers causing divorce between ownership and management, and relationsbetween the employer and the employer became entranged and gradually antagonistic.This new set-up rendered the old philosophy of industrial relation irrelevant and gaverise to complex, indirect, and impersonal industrial relations.Industry today is neither viewed as a venture of employers alone nor profit ifconsidered as its sole objective. It is considered to be a venture based on purposefulcooperation between management and labour in the process of production andmaximum social good is regarded as its ultimate end and both management andemployees contribute in their own way towards its success. Similarly, labour today isno more an unorganized mass of ignorant works ready to obey without resentment orprotest the arbitrary and discretionary dictates of management. The management hasto deal with employees today nto as individuals but also as members of organizedsocial groups who are very much conscious about their rights and have substantialbargaining strength. Hence, the objective of evolving and maintaining soundindustrial relations is not only to find our ways and means to solve conflicts to resolvedifferences but also to secure the cooperation among the employees in the conduct ofindustry.But maintaining smooth industrial relation is not an easy task. Almost all theindustrialized countries of he world fact the problem of establishing and maintaininggood management worker relationships in their industries. Each country has sought tofind our solution, depending upon its economic, social and political environment.
However, industrial conflict still arises and therefore establishment and maintenanceof satisfactory industrial relations forms an important plank in the personnel policiesof modern organization.Meaning In the broad sense, industrial relations cover all such relationships that a businessenterprise maintains with various sections of the society such as workers, state,customers and public who come into its contact. In the narrow sense, it refers to all types of relationships between employer andemployees, trade union and management, works and union and between workers andworkers. It also includes all sorts of relationships at both formal and informal levels inthe organization. The term ‘industrial relations’ has been variously defined. J.T. Dunlop definesindustrial relations as “the complex interrelations among managers, workers andagencies of the governments”. According to Dale Yoder “industrial relations is theprocess of management dealing with one or more unions with a view to negotiate andsubsequently administer collective bargaining agreement or labour contract”.In indusial relations, therefore, one seeks to study how people get on together at theirwork, what difficulties arise between them, how their relations including wages andworking conditions etc., are regulated. Industrial relations, thus, include both‘industrial relations’ and ‘collective relations’ as well as the role of the state inregulating these relations. Such a relationship is therefore complex andmultidimensional resting on economic, social, psychological, ethical, occupational,political and legal levels. There are mainly two set of factors that determine the stateof industrial relations – whether good or poor in any country. The first set of factors,described as ‘institutional factors’ include type of labour legislation, policy of staterelating to labour and industry, extent and stage of development of trade unions andemployers’ organizations and the type of social institutions. The other set of factors,described as ‘economic factors’ include the nature of economic organizationcapitalist, socialist technology, the sources of demand and supply in the labourmarket, the nature and composition of labour force etc.Distinction between human relations and industrial relationsThe term ‘human relations’ lays stress upon the processes of inter-personalrelationships among individuals as well as the behavior of individuals as members ofgroups. The term ‘industrial relations’ is used widely in industrial organizations andrefers to the relations between the employers and workers in an organization, at anyspecified time.Thus, while problem of human relations are personal in character and are related tothe behavior of individuals where moral and social element predominate, the term‘industrial relations’ is comprehensive covering human relations and the relations
between the employers and workers in an organization as well as matters regulated bylaw or by specific collective agreement arrived at between trade unions and themanagement.However, the concept of ‘industrial relations’ has undergone a considerable changesince the objective of evolving sound and healthy industrial relations today is not onlyto find out ways and means to solve conflicts or resolve difference but also t secureunreserved cooperation and goodwill to divert their interest and energies towardconstructive channel. The problems of industrial relations are therefore, essentiallyproblems that may be solved effectively only by developing in conflicting socialgroups of an industrial undertaking, a sense of mutual confidence, dependence andrespect and at the same time encouraging them to come closer to each other forremoving misunderstanding if any, in a peaceful atmosphere and fostering industrialpursuits for mutual benefits.Significance of Industrial RelationsMaintenance of harmonious industrials relations is on vital importance for thesurvival and growth of the industrials enterprise. Good industrial relations result inincreased efficiency and hence prosperity, reduced turnover and other tangiblebenefits to the organization. The significance of industrial relations can besummarized as below: 1. It establishes industrial democracy: Industrial relations means settling employees problems through collective bargaining, mutual cooperation and mutual agreement amongst the parties i.e., management and employees’ unions. This helps in establishing industrial democracy in the organization which motivates them to contribute their best to the growth and prosperity of the organization. 2. It contributes to economic growth and development: Good industrial relations lead to increased efficiency and hence higher productivity and income. This will result in economic development of the economy. 3. It improves morale of he work force: Good industrial relations, built-in mutual cooperation and common agreed approach motivate one to contribute one’s best, result in higher productivity and hence income, give more job satisfaction and help improve the morale of the workers. 4. It ensures optimum use of scare resources: Good and harmonious industrial relations create a sense of belongingness and group-cohesiveness among workers, and also a congenial environment resulting in less industrial unrest, grievances and disputes. This will ensure optimum use of resources, both human and materials, eliminating all types of wastage. 5. It discourages unfair practices on the part of both management and unions: Industrial relations involve setting up a machinery to solve problems
confronted by management and employees through mutual agreement to which both these parties are bound. This results in banning of the unfair practices being used by employers or trade unions. 6. It prompts enactment of sound labour legislation: Industrial relations necessitate passing of certain labour laws to protect and promote the welfare of labour and safeguard interests of all the parties against unfair means or practices. 7. It facilitates change: Good industrial relations help in improvement of cooperation, team work, performance and productivity and hence in taking full advantages of modern inventions, innovations and other scientific and technological advances. It helps the work force to adjust themselves to change easily and quicklyCauses of Poor Industrial RelationsPerhaps the main cause or source of poor industrial relations resulting in inefficiencyand labour unrest is mental laziness on the part of both management and labour.Management is not sufficiently concerned to ascertain the causes of inefficiency andunrest following the laissez-faire policy, until it is faced with strikes and more seriousunrest. Even with regard to methods of work, management does not bother to devisethe best method but leaves it mainly to the subordinates to work it out for themselves.Contempt on the part of the employers towards the workers is another major cause.However, the following are briefly the causes of poor industrial relations: 1. Mental inertia on the part of management and labour; 2. An intolerant attitude of contempt of contempt towards the workers on the part of management. 3. Inadequate fixation of wage or wage structure; 4. Unhealthy working conditions; 5. Indiscipline; 6. Lack of human relations skill on the part of supervisors and other managers; 7. Desire on the part of the workers for higher bonus or DA and the corresponding desire of the employers to give as little as possible; 8. Inappropriate introduction of automation without providing the right climate; 9. Unduly heavy workloads; 10. Inadequate welfare facilities; 11. Dispute on sharing the gains of productivity;
12. Unfair labour practices, like victimization and undue dismissal; 13. Retrenchment, dismissals and lock-outs on the part of management and strikes on the part of the workers; 14. Inter-union rivalries; and 15. General economic and political environment, such as rising prices, strikes by others, and general indiscipline having their effect on the employees’ attitudes.Objectives of Industrial Relations 1. To bring better understanding and cooperation between employers and workers. 2. To establish a proper channel of communication between workers and management. 3. To ensure constructive contribution of trade unions. 4. To avoid industrial conflicts and to maintain harmonious relations. 5. To safeguard the interest of workers and the management. 6. To work in the direction of establishing and maintaining industrial democracy. 7. To ensure workers’ participation in decision-making. 8. To increase the morale and discipline of workers. 9. To ensure better working conditions, living conditions and reasonable wages. 10. To develop employees to adapt themselves for technological, social and economic changes. 11. To make positive contributions for the economic development of the country.ScopeThe scope of industrial relations includes all aspects of relationships such as bringingcordial and healthy labour management relations, creating industrial peace anddeveloping industrial democracy. The cordial and healthy labour management relations could be brought in- • by safeguarding the interest of the workers; • by fixing reasonable wages; • by providing good working conditions;
• by providing other social security measures; • by maintaining healthy trade unions; • by collective bargaining.The industrial peace could be attained – • by setting industrial disputes through mutual understanding and agreement; • by evolving various legal measure and setting up various machineries such as Works Committee, Boards of Conciliation, Labour Courts etc.The industrial democracy could be achieved – • by allowing workers to take part in management; and • by recognition of human rights.Approaches to Industrial RelationsIndustrial conflicts are the results of several socio-economic, psychological andpolitical factors. Various lines of thoughts have been expressed and approaches usedto explain his complex phenomenon. One observer has stated, “An economist tries tointerpret industrial conflict in terms of impersonal markets forces and laws of supplydemand. To a politician, industrial conflict is a war of different ideologies – perhaps aclass-war. To a psychologist, industrial conflict means the conflicting interests,aspirations, goals, motives and perceptions of different groups of individuals,operating within and reacting to a given socio-economic and political environment”.Psychological approachAccording to psychologists, problems of industrial relations have their origin in theperceptions of the management, unions and rank and file workers. These perceptionsmay be the perceptions of persons, of situations or of issues involved in the conflict.The perceptions of situations and issues differ because the same position may appearentirely different to different parties. The perceptions of unions and of themanagement of the same issues may be widely different and, hence, clashes and mayarise between the two parties. Other factors also influence perception and may bringabout clashes. The reasons of strained industrial relations between the employers and theemployees can be understood by studying differences in the perception of issues,situations and persons between the management groups and labour groups.
The organizational behavior of inter-groups of management and workers is of crucialimportance in the pattern of industrial relations. The group-dynamics between the twoconflicting groups in industrial relations tend to shape the behavioural pattern.Sociological approachIndustry is a social world in miniature. The management goals, workers’ attitudes,perception of change in industry, are all, in turn, decided by broad social factors likethe culture of the institutions, customs, structural changes, status-symbols, rationality,acceptance or resistance to change, tolerance etc. Industry is, thus inseparable fromthe society in which it functions. Through the main function of an industry iseconomic, its social consequences are also important such as urbanization, socialmobility, housing and transport problem in industrial areas, disintegration of familystructure, stress and strain, etc. As industries develop, a new industrial-cum-socialpattern emerges, which provides general new relationships, institutions andbehavioural pattern and new techniques of handling human resources. These doinfluence the development of industrial relations.Human relations approachHuman resources are made up of living human beings. They want freedom of speech,of thought of expression, of movement, etc. When employers treat them as inanimateobjects, encroach on their expectations, throat-cuts, conflicts and tensions arise. Infact major problems in industrial relations arise out of a tension which is createdbecause of the employer’s pressures and workers’ reactions, protests and resistance tothese pressures through protective mechanisms in the form of workers’ organization,associations and trade unions.Through tension is more direct in work place; gradually it extends to the wholeindustry and sometimes affects the entire economy of the country. Therefore, themanagement must realize that efforts are made to set right the situation. Services ofspecialists in Behavioural Sciences (namely, psychologists, industrial engineers,human relations expert and personnel managers) are used to deal with such relatedproblems. Assistance is also taken from economists, anthropologists, psychiatrists,pedagogists, tec. In resolving conflicts, understanding of human behavior – bothindividual and groups – is a pre-requisite for the employers, the union leaders and thegovernment – more so for the management. Conflicts cannot be resolved unless themanagement must learn and know what the basic what the basic needs of men are andhow they can be motivated to work effectively.It has now been increasingly recognized that much can be gained by the managers andthe worker, if they understand and apply the techniques of human relationsapproaches to industrial relations. The workers are likely to attain greater jobsatisfaction, develop greater involvement in their work and achieve a measure of
identification of their objectives with the objectives of the organization; the manager,on their part, would develop greater insight and effectiveness in their work.Principle of Good Industrial Relations • The willingness and ability of management and trade unions to deal with the problems freely, independently and with responsibility. • Recognition of collective bargaining. • Desirability of associations of workers and managements with the Government while formulating and implementing policies relating to general economic and social measures affecting industrial relations. • Fair redressal of employee grievances by the management • Providing satisfactory working conditions and payment of fair wage. • Introducing a suitable system of employees education and training. • Developing proper communication system between management and employees. • To ensure better working conditions, living conditions and reasonable wages. • To develop employees to adapt themselves for technological, social and economic changes. • To make positive contributions for the economic development of the country.Role of state in industrial relationsIn recent years the State has played an important role in regulating industrial relationsbut the extent of its involvement in the process is determined by the level of socialand economic development while the mode of intervention gets patterned inconformity with the political system obtaining in the country and the social andcultural traditions of its people. The degree of State intervention is also determined bythe stage of economic develop. For example, in a developing economy like ours,work-stoppages to settle claims have more serious consequences than in a developedeconomy and similarly, a free market economy may leave the parties free to settletheir relations through strikes and lockouts but in other systems varying degrees ofState participation is required for building up sound industrial relations.In India, the role played by the State is an important feature in the field of industrialrelations and State intervention in this area has assumed a more direct form. The Statehas enacted procedural as well as substantive laws to regulate industrial relations inthe country.
Role of management in industrial relationsThe management have a significant role to play in maintaining smooth industrialrelations. For a positive improvement in their relations with employees andmaintaining sound human relations in the organization, the management must treatemployees with dignity and respect. Employees should be given ‘say’ in the affairs ofthe organization generally and wherever possible, in the decision-making process aswell. A participative and permissive altitude on the part of management tends to givean employee a feeling that he is an important member of the organization – a feelingthat encourages a spirit of cooperativeness and dedication to work. • Management must make a genuine efforts to provide congenial work environment. • They must make the employees feel that they are genuinely interested in their personal development. To this end, adequate opportunities for appropriate programmes of 18training and development should be provided. • Managements must delegate authority to their employees commensurate with responsibility. • They must evolve well conceived and scientific wage and salary plan so that the employees may receive just compensation for their efforts. They must devise, develop and implement a proper incentive plan for personnel at all levels in the organization. • There must be a well-planned communication system in the organization to pass on information and to get feed back from the employees. • Managements must pay personal attention to the problems of their employees irrespective of the fact whether they arise out of job environment or they are of personal nature. • They must evolve, establish and utilize appropriate machineries for speedy redressal of employees grievances. • Manageemnts must provide an enlightened leadership to the people in the organization.An environment of mutual respect, confidence, goodwill and understanding on thepart of both management and employees in the exercise of their rights andperformance of their duties should prevail for maintaining good industrial relationsRole of trade unions in maintaining industrial relationsThe trade unions have a crucial role to play in maintaining smooth industrial relations.It is true that the unions have to protect and safeguard the interests of the workers
through collective bargaining. But at the same time they have equal responsibility tosee that the organization do not suffer on account of their direct actions such asstrikes, even for trivial reasons. They must be able to understand and appreciate theproblems of managements and must adopt a policy of ‘give and take’ whilebargaining with the managements. Trade unions must understand that bothmanagement and workers depend on each other and any sort of problem on either sidewill do harm to both sides. Besides public are also affected, particularly when theinstitutions involved are public utility organizations.The labour management synergyPlanning for healthy Industrial Relations is one of the most delicate and complexproblems of present day industrial society, representing diverse ‘points of flexion’ and‘bases of industrial edifice’. How people get on together at their work, whatdifficulties arise between them, how their relations, including wages and workingconditions, are regulated and what organizations are set up for the protection ofdifferent interests- these are some of the major issues of industrial relations system.The Triangle of Industrial Relations System represents multi-pronged relationshipbetween management, trade unions and workers.Industrial Relations System’s responsibility implies: (a) Inter-vertex Relationship(amongst management, trade unions and workers inter se) and, (b) Inter-societalobligations.Management relationship vis-à-vis trade unions is based on increasing realization thattrade unionism has to come to stay as a necessary concomitant of the contemporarycapitalist them; and, that trade unions movement is the expression of the workers’collective determination to recover emotional security lost through Industrialrevolution.Management relationship vis-à-vis workers revolves round the themes like attitudetowards work; industrial democracy; urge for greater degree of control over worksituation; search for an environment, where worker can take roots and where hebelongs to; and, identification of the functions, where he sees the purpose of his workand feels important in achieving it.Management approach towards itself presupposes management as a social task. Sincelife is based on conflict, the management task in the long-run is directed towardsharmonizing this conflict inside and outside the enterprise. The art and science ofmanagement is highly sophisticated with theories, concepts and models ofmanagement.Trade union relationship vis-à-vis management is conditioned by accepting the factthat management presents an indissoluble partnership amongst interest, power andresponsibility in the societal context.
Trade Union relationship vis-à-vis workers implied that it should appreciate workers’aspirations and expectations that trade union is essentially a protective, friendlysociety, meant primarily to manage and handle their economic, social and culturalproblems. Often aspirations of workers are at variance with those of leaders in thetrade union movement. Trade union approach towards itself is based on the premisethat trade unionism is a management system. Trade Unions as organizations generallyviewed themselves as an ‘end’ rather than as a ‘means’ centering on ‘cause’ and noton ‘man’, which, in turn, creates an attitude of convalescence and the cause ofunconsciousness. There is often a tendency in trade unionism to promote ‘massmovement’ instead of an ’organisation’, and its membership is often based on‘calamity features’ rather than on ‘positive factors’. In a changing situation like India,ideological postures are of limited relevance in the realm of trade unionism, which hasto undertake responsibilities in a dynamic situation, influenced by external andinternal environment and focusing on: WORKERS TRADE UNION • The primary purpose • Organisation • Adjustment and adaptation • Attitudes • Representation • Economic responsibility
• DisciplineThere is an imperative need of strengthening the democracy and freedom within thetrade unions, encourage workers’ participation in the process of decision-making anddeveloping new perspectives in the personnel problems of the trade unionism.Management and trade unions both have to be aware of the changing value system,the needs of a ‘new breed’ of employee, the ever-increasing generational gap inattitudes towards money, emphasis on quality of life, public’s lower frustrationtolerance, changing attitudes towards work and leisure, education’s impact onpeoples’ self-image, rejection of authoritarianism and dogmatism, greater stress onpluralism and individualism, and search of identity, self-esteem and self-realization.The ideology based on rationality; moral absolutes leading to situational ethics; and,economic efficiency resulting in social justice; are the new bases and postulates forshaping the future industrial relations system in the Indian context.Planning Industrial Relations: Tasks AheadIn future organization systems, employees would consider themselves to be partnersin management and expect their talents to be utilized to the fullest. With increasedself-esteem and self-image, young graduates will resist authority and would challengeprevailing management prerogatives. Tomorrow’s management control centers,advanced OR models will aid future managers in the use of resources, they wouldneed to balance humanistic values with the flow of advancing science and technology.According to Victor Fuchs, “In future, the large corporation is likely to be over-shadowed by the hospital, university, research institutes, government offices andprofessional organizations that are the hallmarks of a service economy’. Followingthe concept of ‘corporate citizenship’, the ‘responsible corporation’ has to develop asa social institution, where people share success and failure, create ideas, interact andwork for development and realization of the individual’s potential as human being.Since Industrial Relations is a function of three variables – management, trade unionsand workers, a workable approach towards planning for healthy labour-managementrelations can be developed by: • Defining the acceptable boundaries of employer/ employee action; • Granting the freedom to act within these boundaries; and • Monitoring the resulting developments.
For achieving the objectives of improved management – trade union the followingline fo action is suggested: • A realistic attitude of managers towards employees and vice versa for humanizing industrial relations. • Proper organization climate and extension of area of Industrial Relations, • Institutionalism of industrial relations and effective forums for interaction between management and trade unions at plant, industry and national levels. • A comprehensive system of rules and discipline, • The maintenance of an efficient system of communication, • An objective follow-up pattern for industrial relations system. • Respect for public opinion and democratic values • An integrated industrial relations policy incorporating rational wage policy; trade union and democratic rights, sanctity of ballot, collective bargaining and tripartite negotiations.Whatever, labour laws may lay down, it is the approach of the management and unionwhich matters and unless both are enlightened, industrial harmony is not possible. Infact both managements and workers need a change in their philosophy and attitudestowards each other. In all fairness, both management and workers should not lookupon themselves as two separate and distinct segments of an organization, but on thecontrary, realize that both are partners in an enterprise working for the success of theorganization for their mutual benefit and interest. It is becoming increasingly obviousthat industrial peace amongst all participants in the industrial relations systemsrequires truth as foundation, justice as its rule, love as its driving force, and liberty asits atmosphere.REVIEW QUESTIONS: 1. Bring out the significance of industrial relations. 2. Discuss different approaches to industrial relations. 3. What are the principles of good industrial relations? 4. Explain the role of the Government, Employer and the Trade Union in maintaining sooth industrial relations. 5. Suggest suitable strategies for maintaining cordial industrial relations.
Lesson 2 Labour and the ConstitutionConstitutional FrameworkThe Constitution of India has guaranteed some Fundamental Rights to the citizens andhas also laid down certain Directive Principles of State Policy for the achievement ofa social order based on Justice, Liberty, Equality and Fraternity, The Constitutionamply provides for the upliftment of labour by guaranteeing certain fundamentalrights to all. Article 14 lays down that the State shall not deny to any person equalitybefore the law or the equal protection of laws. There shall be equality of opportunityto all citizens in matters relating to employment or appointment or appointment to anyoffice under the State. People have the right to form associations or unions. Traffic inhuman beings and forced labour and the employment of children in factories or minesor other hazardous work in prohibited. The Directive Principles, though notenforceable by any court, are nevertheless fundamental in the governance of thecountry, and it shall be the duty of the State to apply those principles in making lawsfrom time to time.Labour is in the Concurrent List on which both the Centre as well as the States havethe power to make laws, Article 254 has been enacted to clarify the position.Normally, as laid down in clause(I), in case of any repugnancy between the Union andthe State legislation, the legislation of the Union shall prevail. To this, there is oneexception embodied under clause(II) of Art. 354, where, a law enacted by a State withrespect to the matter enumerated in the Concurrent List, reserved for the considerationenumerated in the Concurrent List, reserved for the consideration of the President, hasreceived his assent, such law shall prevail in the State, and provisions of that lawrepugnant to the provision of an earlier law made by the Parliament or any existinglaw with respect to that matter have priority over the Central legislation.Articles 39, 41, 42 and 43 have a special relevance in the field of industrial legislationand adjudication. In fact, they are the sub-stratum of industrial jurisprudence.Article 39 accentuates the basic philosophy of idealistic socialism which is enshrinedin the Preamble of the Constitution and provides a motivation force to the DirectivePrinciples by laying down that the State shall direct its policy towards equal pay forboth men and women.Article 41 lays down that the State shall, within the limits of its economic capacityand development, make effective provision for securing the right to work, toeducation and to public assistance in cases of unemployment, old age, sickness anddisablement, and in other cases of undeserved want.
Social security is guaranteed in our Constitution under Arts. 39, 41 and 43. TheEmployees’ State Insurance Act, 1948, is a pioneering piece of legislation in the fieldof social insurance. The benefits provided to the employees under the scheme are: (1)sickness benefit and extended sickness benefit; (2) maternity benefit; (3) disablementbenefit; (4) dependants’ benefit; (5) funeral benefit; and (6) medical benefit. All thebenefits are provided in cash except the medial which is in kind.The administration of the scheme is entrusted to an autonomous corporation called theEmployees’ State Insurance Corporation. The Employees’ Provident Funds andMiscellaneous Provisions Act, 1952 and the Maternity Benefit Act, 1961, are alsosocial security measures to help fulfill the objectives of Directive Principles of ourConstitution. • The Provident Fund Scheme aimed at providing substantial security and timely monetary assistance to industrial employees and their families. This scheme has provided protection to employees and their dependants in case of old age, disablement, early death of the bread-winner and in some other contingencies. • A scheme of Family Pension-cum-Life Assurance was introduced with a view t providing ling-term recurring financial benefit to the families in the event of the members’ premature death while in service. The Employees’ Provident Fund Organization, is in charge of three important schemes, viz., the Employees’ Provident Funds Scheme, the Employees’ Family Pension Scheme and the Employees’ Deposit-linked Insurance Scheme. • The Maternity Benefit Scheme is primarily designed to provide full wages and security of employment. They enable a female employee to get maternity leave with full wages at least for 6 weeks before and 6 weeks after confinement. • The object of the Payment of Gratuity Act, 1972 is to provide a scheme for the payment of gratuity to employees employed in factories, mines, oil fields, plantations, ports, railways, shops and establishments. All employees who have rendered a minimum of years’ continuous service in the above mentioned establishments are entitled to gratuity at the time of superannuation, retirement, resignation, death or if they leave their job due to accident, disablement. Under the Act., employers are required to pay gratuity at the rate of 15 days’ wages for every completed year of service subject to a maximum of 20 months’ wages.Article 42 enjoins the State government to make provision for securing just andhumane conditions of work and for maternity relief.Substantial steps have been taken to fulfill the object of Art.42 of the Constitution.The Factories Act., 1948, provides for health, safety, welfare, employment of young
persons and women, hours of work for adults and children, holidays, leave with wagesetc. Labour welfare funds have been set up to provide welfare facilities to the workersemployed in different mines such a coal, mica, iron ore and limestone. The ContractLabour (Regulation and Abolition) Act of 1970, a piece of social legislation, providesfor the abolition of contract labour wherever possible and to regulate the conditions ofcontract labour in establishments or employments where the abolition of contractlabour system is not considered feasible for the time being. The Act provides forlicensing of contractors and registration of establishments by the employersemploying contract labour.Article 43 makes it obligatory for the State to secure by suitable legislation oreconomic organization or in any other manner to all workers, agricultural, industrial,or otherwise, work, a living wage, condition of work ensuring a decent standard oflife and full enjoyment of leisure and social and cultural opportunities.To ensure this, the Minimum Wages Act, 1948, was enacted. It provides for thefixation of minimum rates of wages by the Central or State governments within aspecified period for workers employed in certain scheduled employments. These ratesvary from State, area to area and from employments to employment. The minimumwage in any event must be paid irrespective of the capacity of the industry to pay.Living wage is the higher level of wage and of the industry to pay and naturally, itwould include all amenities which a citizen living in a modern civilized society isentitled to. Fair wage is something above the minimum wage which may roughly besaid to approximate to the need-based minimum wage. It is a mean between the livingwage and the minimum wage.Article 43A makes it obligatory on the State to take steps by suitable legislation orotherwise to secure the participation of workers in the management of undertakingsand industrial establishments. As observed by the National Commission on Labour inits report, “in accepting the Directive Principles, the country is committed morally andethically to see that the governance of the country is carried on with a view toimplementing these Directive Principles in course of time” (Chapter VI, p.48).Social JusticeIn industrial adjudication, the concept of social justice has been given wideacceptance. Different views have been expressed by different authorities about theexact meaning and scope of this concept. According to the Supreme Court, it was avague and indeterminate expression and that no definition could be laid down whichwould cover all situations. According to Justice Holmes, social justice is “aninarticulate major premise which is personal and individual to every court and everyjudge”.In a democratic society, administration of justice is based on the Rule of Law, which,as conceived by modern jurists, is dynamic and includes within its imports socialjustice. It has been given a place of pride in our Constitution. The philosophy of social
justice has now become an integral part of industrial jurisprudence. The philosophy ofsocial justice has now become an integral part of industrial jurisprudence. Theconcept of social justice is a very important variable in the function of industrialrelations. In a welfare State it is necessary to apply the general principles of social andeconomics justice to remove the imbalances in the political, economic and social lifeof the people.Review Questions 1. State the relevant provisions of Indian Constitution for labour welfare. 2. State the relevant legal enactments relating to labour.
LESSON 3 Trade UnionismTrade unionism is a worldwide movement and the highly strategic position occupiedby trade unions in modern industrial society has been widely recognized. In mostcases, employees’ associations or trade unions seem to have emerged as ‘protestmovements’ reaching against the working relationships and condition created byindustrialization. When industrialization begins, organization members have to begenerally recruited from the ranks of former agricultural labour and artisans who haveto adapt themselves to the changed conditions of industrial employment. They have tobe provided with new types of economic security – wages / salaries, benefits andservices etc. Often they may have to learn to live together in newly developingindustrial townships and cities and also to adopt themselves to new workingconditions and new pattern of work-rules imposing discipline and setting pace ofwork to which they are unfamiliar. Their old habits and traditions do not suffice toguide them in their daily work-behaviour and in consequence they may bedisorganized and frustrated. Thus the growth of modern industrial organizationsinvolving the employment of a large number of workers / employees in new type ofworking conditions and environment makes them helpless in bargaining individuallyfor their terms of employment. As observed by Frank Tannenbaum, “The emergenceof trade unionism lies in the Industrial Revolution which disrupted the older way oflife and created a new society forged by the shop, the factory, the mine and theindustry.Meaning of Trade Union, Organized Labour and LabourMovementThe term ‘Trade Union’ has been defined in various ways because of wide differencesin the use of this term in different countries. Of all the definitions of a trade union, theclassic definition of the Webbs has been most popular. According to them a tradeunion is “a continuous association of wage-earners for the purpose of maintaining orimproving the condition of their working lives”. Since this definition does not coverall the extensions of trade union activities in modern times, a trade union with somemodification may be redefined as “a continuous association of wage-earners orsalaried employees for maintaining the conditions of their working lives and ensuringthem a better and healthier status in industry as well as in the society”.The term ‘Organized Labour’ is used to distinguish workers/ employees who aremembers of trade unions or employee association from those who are unorganized,i.e. who are not members of any union.The term ‘Labour Movement’ is generally applied to all the various types of long-term association of workers / employees that the formed in industrialized or
industrializing economies. According to Encyclopedia of Social Sciences, labourmovement is conceived as “all of the organized activity of wage-earners to better theirown condition s either immediately or in the more or less distant future”. Accordingto G.D.H. code, “Labour movement implies, in some degree, a community of outlook.Thus the labour movement in a country emerges from a common need to serve acommon interest. It seeks to develop amongst employees a spirit of combination,class-consciousness and solidarity of interest and generates a consciousness for self-respect and creates organizations for their self protection, safeguarding of theircommon interest and betterment of their economic and social conditions. A tradeunion is thus an essential basis of labour movement. The labour movement withouttrade unions cannot exist. Trade unions are the principal institutions in which theemployees learn the lesson of self-reliance and solidarity.Difference between Labour M ovement and Trade UnionMovementThere is lot of confusion on the use of the terms ‘labour movement’ and ‘trade unionmovement’. Often the two are used interchangeably. However, there is a slightdistinction between the two. The ‘labour movement’ is ‘for the worker’; whereas the‘trade union movement’ is ‘by the workers’. This distinction needs to be noticed allthe more because till the workers organized themselves into trade unions, efforts weremade mainly by the social reformers to improve the working and living conditions oflabour. These efforts should be taken as forming a part of the labour movement andnot that of the trade union movement. The labour movement thus conveys a higherdegree of consciousness amongst workers than conveyed by mere trade unionmovement.The Trade Union Movement in IndiaThe trade union movement’s origin in a sense can be traced back to very early date tothe time when villages had panchayats and guilds for settling disputes between themasters and their members. The panchayats prescribed the code of conduct which wasrigidly observed by its members. Its non-observance resulted in expulsion from thecommunity. Trade unions, as understood today, however originated in the first quarterof the present century, although the groundwork was laid during the last quarter of the19th century. In Mumbai, as early as in 1975, a movement was started by reformersunder the leadership of Sorabji Shapurju. They protested against the appealingconditions of the factory workers and appealed for introduction of adequatelegislation to prevent them. The credit of laying the foundation of the organizedlabour movement in India is at time accorded to Mr. N.M. Lokhande, a factory workerhimself. An agitation was organized by him a 19884 in Mumbai. This resulted incertain amenities being extended to the mill workers which led to the organization ofthe Mumbai Milhands Association.Actually a real organized labour movement in India started at eh end of the FirstWorld War. Rising prices, without a corresponding increase in wages, despite the
employers making huge profits, led to a new awakening. Many trade unions wereformed throughout India. There were a number of strikes during 1919 to 1922. To thiswas added the influence of the Russian Revolution, the establishment of the ILO(International Labour Organisation) and the All-India Trade Union Congress. Thie4speeded up the pace of the trade union movement. Following the Second World War,there was a spiraling of prices. The workers once again became restive. This furtherindirectly strengthened the movement in India.The labour world in India is dominated mainly by four central organization of labour.These unions are, in fact, federations of affiliated union – units which function onregional, local and craft bases. These are: 1. All-India Trade Union Congress (AITUC): An important event in the history of trade union movement in India was the organization of the All-India Trade Union Congress in 1920. Mr. Nehru took a prominent part in the organization of this Congress. It followed the pattern of the trade union s in the United Kingdom. The effort toward unified action in the matter of labour was, however, short-lived and soon it came under the domination of the Communists and Radicals. This lienated any prominent people who did not subscribe to the views and ideology of the communists. At present, it is the second largest union of workers and is still controlled by Communists and fellow-travellers. 2. Indian National Trade Union Congress (INTUC): In May, the Indian National Trade Union Congress was organized by the Congress party on its labour front. This was formed with the help of the Hindustan Mazdoor Sewak Sangh which consisted of those who believed in Gandhian methods and had left the AITUC in 1937 under of leadership of Mr. M.N. Roy. The INTUC received the blessings of the top congress leaders at the Centre like Mr. Nehru and Sardar Patel. The prominent leaders of ATLA and HMSS were elected office- bearers of INTUC. One of the important points of the constitution of Indian National Trade Union Congress is that every affiliated union has to agree to submit to arbitration every individual dispute in which settlement is not reached thorough negotiations. There must be no strikes till other means of settlement are exhausted. In 1948, the Government of India declared that INTUC, and not AITUC, was the most representative organization of labour in the country entitled to represent Indian labour in I.L.O. 3. Hind Mazdoor Sangha (HMS) : The socialists in the Congress disapproved not only the Communist run AITUC but also the Congress-sponsored INTUC, particularly because it advocated compulsory arbitration as a method of resolving industrial disputes. For sometime the activities of socialist leaders were coordinated by the Hind Mazdoor Panchayat. Subsequently when they left the Congress, they met in Kolkatta in December, 1948 and a new
federation by the Hind Mazdoor domination by employers, Government and political parties. 4. United Trade Union Congress (UTUC): The dissidents from the Socialist Leaders’ Congerence held at Kolkatta in December, 1948 proceeded to establish yet another federation of trade unions in April-May 1949 under the name of United Trade Union Congress. The UTUS is more radical than HMS but less revolutionary in its objectives and policies than AITUC.Need for Trade Union • One of the main reasons of workers joining a trade union been their belief to get wages increased and maintained at a reasonable standard through collective action and their realization that individual bargaining was utterly useless for this purpose. • Since the employee, as an individual, feels specially weak, he prefers to join an organization that my afford him an opportunity to join others for the achievement of those objectives that he considers as socially desirable. • The employees may join the unions to ensure a just and fair dealing by management. • Through collective strength, they restrain the management from taking any such action which may be irrational, illogical, discriminatory or contrary to their general interests. • Another reason of employees joining some union may be the broader realization on their part that unions fulfill the important need for adequate machinery for proper maintenance of labour-management relations. • Employees may join the unions because of their belief that it is an effective way to secure adequate protection form various types of hazards and income insecurity such as accident injury, illness, unemployment etc. • The employees may join the unions because of their feeling that this would enable them to communicate their views, ideas, feelings and frustrations to the management effectively. • Individuals may join the unions in the hope of finding a job through their influence in the company management.Functions of Trade Unions • Functions relating to members • Functions relating to organization
• Functions relating to the union; and • Functions relating to the society.Functions relating to trade union members 1. To safeguard workers against all sorts of exploitation by the employers, by union leaders and by political parties. 2. To protect workers from the atrocities and unfair practices of the management. 3. To ensure healthy, safe and conducive working conditions, and adequate conditions of work. 4. To exert pressure for enhancement of rewards associated with the work only after making a realistic assessment of its practical implications. 5. To ensure a desirable standard to living by providing various types of social service – health, housing, educational, recreational, cooperative, etc. and by widening and consolidating the social security measures. 6. To guarantee a fair and square deal and social security measures. 7. To remove the dissatisfaction and redress the grievances and complaints of workers. 8. To encourage worker’s participation in the management of industrial organization and trade union, and to foster labour-management cooperation. 9. To make the workers conscious of their rights and duties. 10. To impress upon works the need to exercise restraint in the use of rights and to enforce them after realistically ascertaining their practical implications. 11. To stress the significance of settling disputes through negotiation, joint consultation and voluntary arbitration. 12. The raise the status of trade union members in the industrial organization and in the society at large.Functions relating to industrial organization 1. To highlight industrial organization as a joint enterprise between workers and management and to promote identity of interests. 2. To increase production quantitatively and qualitatively, by laying down the norms or production and ensuring their adequate observance. 3. To help in the maintenance of discipline.
4. To create opportunities for worker’s participation in management and to strengthen labour-management cooperation. 5. To help in the removal of dissatisfaction and redressal of grievances and complaints. 6. To promote cordial and amicable relations between the workers and management by settling disputes through negotiation, joint consultation and voluntary arbitration, and by avoiding litigation. 7. To create favourable opinion of the management towards trade unions and improve their status in industrial organization. 8. To exert pressure on the employer to enforce legislative provision beneficial to the workers, to share the profits equitably, and to keep away from various types of unfair labour practices. 9. To facilitate communication with the management. 10. To impress upon the management the need to adopt reformative and not punitive, approach towards workers’ faults.Functions relating to trade unions organization 1. To formulate policies and plans consistent with those of the industrial organization and society at large. 2. To improve financial position by fixing higher subscription, by realizing the union dues and by organizing special fund-raising campaigns. 3. To preserve and strengthen trade union democracy. 4. To train members to assume leadership position. 5. To improve the network of communication between trade union and its members. 6. To curb inter-union rivalry and thereby help in the creating of unified trade union movement. 7. To resolve the problem of factionalism and promote unity and solidarity within the union. 8. To eradicate casteism, regionalism and linguism within the trade union movement. 9. To keep away from unfair labour practices. 10. To save the union organization from the exploitation by vested interests – personal and political.
11. To continuously review the relevance of union objectives in the context of social change, and to change them accordingly. 12. To prepare and maintain the necessary records. 13. To manage the trade union organization on scientific lines. 14. To publicise the trade union objectives and functions, to know people’s reaction towards them, and to make necessary modifications.Functions relating to society 1. To render all sorts of constructive cooperation in the formulation and implementation of plans and policies relating to national development. 2. To actively participate in the development of programmes of national development, e.g., family planning, afforestation, national integration, etc. 3. To launch special campaigns against the social evils of corporation, nepotism, communalism, casteism, regionalism, linguism, price rise, hoarding, black marketing, smuggling, sex, inequality, dowry, untouchability, illiteracy, dirt and disease. 4. To create public opinion favourable to government’s policies and plans, and to mobilize people’s participation for their effective implementation. 5. To create public opinion favourable to trade unions and thereby to raise their status. 6. To exert pressure, after realistically ascertaining its practical implications, on the government to enact legislation conducive to the development of trade unions and their members.Problems of Trade UnionThe following are some of the most important problems of the trade unions in India: 1. Multiplicity of Trade Unions and Inter-union Rivalry 2. Small Size of Unions 3. Financial Weakness 4. Leadership Issues 5. Politicalisation of the Unions 6. Problems of Recognition of Trade UnionsMultiplicity of trade unions
Multiple rival unionism is one of the great weaknesses of the Indian trade unionmovement. “Multiple unions are mainly the result of political outsiders wanting toestablish unions of their own, with a view to increasing their political influence”. Theexistence of different conflicting or rival organisatoins, with divergent political views,is greatly responsible for inadequate and unhealthy growth of the movement. Within asingle organisation one comes across a number of groups comprising or ‘insiders andoutsiders’, ‘new-comers’, and ‘old-timers’, moderates’ and radicals’, and ‘high’ andlow caste’ people. This develops small unions. Inter-union and intra-union rivalryundermines the strength and solidarity of the workers in many ways.Multiplicity of unions lead to inter-union rivalries, which ultimately cuts at the veryroot of unionism, weakens the power of collective bargaining, and reduces theeffectiveness of workers in securing their legitimate rights. Therefore, there should be“One union in one Industry”.Inter-union rivalryAnother vexing problem is that of intra-union rivalry. Trade rivalry is acute andpervades the entire industrial scene in India. Practically every important industry,there exists parallel and competing unions, e.g. on the Indian Railways, there are twoparallel Federations – the Indian Railway Men’s Federation and Indian NationalFederation of Railway-men.Small Size of unionsThe small size of unions is due to various factors, namely: • The fact that by seven workers may form a union under the Trade Union Act of 1926, and get it registered and a large number of small unions have grown. • The structure of the trade union organization in the country – which is in most cases the factory or the unit of employment; so whenever employees in a particular factory or mine are organized, a new union is formed. • Unionism in India started with the big employers and gradually spread to smaller employers. This process is still continuing and has pulled down the average membership. Though the number of unions and union membership are increasing average membership is declining. • Rivalry among the leaders and the Central Organisation has resulted in multiplicity of unions.The small size of unions create problems such as: • Lack of funds to help its members. • Lack of ability among the leaders and members.
• Low bargaining power. • Rivalry between the unions • Lack of unity among workers.Financial weaknessThe financial weakness of the union may be attributed to the small size of union andpoor ability of its members to contribute. The other reasons are low subscriptions andirregular payments of subscriptions by the members.Leadership issuesAnother disquieting feature of the trade unions is the ‘outside’ leadership, i.e.leadership of trade unions by persons who are professional politicians and lawyersand who have no history of physical work in the industry. There are several reasonsfor this phenomenon, namely. • The rank and the file are largely illiterate as such they cannot effectively communicate with the management; • The union’s lack of formal power tends to put a premium on the dharismatic type of the leader, usually a politician, who can play the role of the defender of the workers against the management; • For ensuring a measure of ‘equation of power’ in collective bargaining where the workers are generally uneducated and have a low status. • For avoiding victimisation of worker-office-bearers of the trade unions; and • For lack of financial resources to appoint whole time office-bearers.These political leaders are inevitably concerned with “maximizing their individualstanding as political leaders rather than with, maximizing the welfare of theirmembers”. Further, in bigger unions, direct contact with the rank and file membershipand the top leaders is missing because of their hold on a number of trade unions invaried fields; they fail to pay adequate attention to any one union. Again, often theseunion leaders are not adequately aware of the actual needs and pressing problems ofthe members. They, therefore cannot put forth the case of the union effectively.Outside leadership of the unions leads to political unionism (each union having anallegiance to a different political party), which in turn, leads to multiplicity of unions,leading to intra-union rivalry, which cause low membership leading to unsoundfinances and in turn, lack of welfare and other constructive activities which mayinfuse strength into unions and to conduct collective bargaining effectively the unionsdepend on outside leadership, and the vicious circle thus goes on and on.
Over and again it has been realized that “a reorientation of policy is desirable by aswitchover to working class leadership”. The National Commmission on Labour gavea good deal of though to the issue whether outside leadership shoul be retained. It feltthat, “there should be no ban on non-employees holding positions in the executivebody of the unions as that would be a very drastic step”. The Commission also refersto the ILO convention (No. 87) concerning “freedom of association” and protection ofthe right to organize, and the workers’ organisation shall have the right to elect theirrepresentative in full freedom.The commission’s own estimate was that outsiders in the unions executive bodieswould be about 10%, much less than the number legally permitted. It makes thefollowing recommendations to deal with the problem of outside leadership: • Ex-employees of an industrial enterprise should not be treated as outsiders; • Intensification of worker’s education; • Penalties for victimization and similar unfair labour practices such as would discourage the growth of internal leadership; • Intensification of efforts by trade union organizers to train workers in union organisation. • Limiting the proportion of outsiders in the union execute; • Establishing a convention that no union office-bearer will concurrently hold an office in a political party.Hence, leadership should be promoted from within the rank and file and given a moreresponsible role. Initiative should come from the workers themselves through thelaunching of a vigorous programme for Workers’ Education. This will enable them toparticipate in the decision-making and managing the union affairs effectively.Politicalisation of the unionsOn of the biggest problems of the country’s trade union movement faces is theinfluence of the political parties. i.e., the most distressing feature is its politicalcharacter. Harold Crouch has observed, “Even to the most casual observer of theIndian trade union scene, it must be clear that much of the behaviour of Indian unions,whether it be militant or passive behaviour can be explained in political terms.Dr. Raman’s observations are: “Trade union multiplicity in India is directly traceableto the domination and control of the trade union movement by rival politicalparties…. The clay of unionism is possibly an effervescent industrial labourers, butthe sculptors chiseling it into shape have certainly been members of political parties.
In a recent study, Dr. Pandey had reached the conclusion: “The unions are closelyaligned with political parties, and political leaders continue to dominate the unionseven now… The supreme consequence of political involvement of unions in India ingeneral, formed to safeguard and promote the social and economic interests ofworkers, have tended to become tools of party politics”.It should be noted that decisions in the trade union fields are taken by the respectivepolitical parties to which the unions are attached and, therefore, with the changingpolitical situation, the decisions also change. With the split in the political ideology,there develops factional split in the same trade union professing the same politicalideology. The divisions and sub-divisions, thus made, have affected adversely thetrade union movement. It has become fragmented and disjointed. Each section pullsitself in different directions; with the result that “instead of becoming a unity andmighty torrential river, the movement is sub-divided into numerous rivulets”.Dr. Raman ahs very aptly conclude that: “The use of political methods by tradeunions may be to their advantage, but the union cause is endangered when unionsallow themselves to become pawns in political fights. Political unionism hasprevented the development of a movement or organisation that could be termed theworkers’ own and turned the soil upside down to such a degree that it has becomeimpossible for a genuine labour-inspired, labour-oriented, worker-led trade unionmovement to take root”.Problems of recognition of trade unionsThis is one of the basic issues in our industrial relation system because employers areunder no obligation to give recognition to any union. In the initial stages, the attitudesof the employers towards the trade unions have been very hostile. The employersmany a times have refused recognition to trade unions either on the basis that unionsconsist of only a minority of employees; or that two or more unions existed.Recommendations of National Commission on Labour forStrengthening Trade UnionsThe National Commission on Labour has made a large number of recommendationson different aspects of trade unions, as given below;Enlargement of functions The N.C.L. has stated that the “unions must pay greater attention to the basic needsof its members which are: • to secure for workers fair wages; • to safeguard security of tenure and improved conditions of service; • to enlarge opportunities for promotion and training;
• to improve working and living conditions; • to provide for educational, cultural and recreational facilities; • to cooperate in and facilitate technological advance by broadening the understanding of workers on its underlying issues; • to promote identity of interests of the workers with their industry; • to offer responsible cooperation in improving levels of production and productivity, discipline, and high standard of quality; and generally • to promote individual and collective welfare”.In addition, “unions should also undertake social responsibilities such as • promotion of national integration, • influencing the socio-economic policies of the community through active participation in the formulations of these policies, and • instilling in their members a sense of responsibility towards industry and community”.The main objective should be to draw unions as closely as possible into the entiredevelopment process.LeadershipRegarding leadership the N.C.L. has recommended that “(i) There should be not banon non-employees holding the position in the executive of the unions; (ii) steps shouldtaken in to promote international leadership and give it more responsible role (iii)internal leadership should be kept outside the pale of victimization; (iv) permissiblelimit of outsiders in the executive of the unions should be reduced to 25%; and (v) ex-employees should not be treated as outsiders”.Union rivalriesIn regard to union rivalries, the Commission was of the opinion that itsrecommendation regarding recognition of unions, building up of internal leadership,shift to collective bargaining and institution of an independent authority for unionrecognition would reduce them. Intra-union rivalries should be left to the centralorganisation concerned to settle and if it is unable to resolve the dispute the LabourCourt should be set up at the request of either group or on a motion by thegovernment.Registration
The Commission has recommended that registration should be cancelled if: (a) itsmembership fell below the minimum prescribed for registration; (b) the union failedto submit its annual; (c) it submitted defective returns and defects were not rectifiedwithin the prescribed time; and (d) an application for re-registration should not beentertained within six months of the date of cancellation of registration.Improvement of financial conditionTo improve the financial conditions of the unions, the Commission recommended forthe increase of membership fees.Verification of membershipThe Industrial Relations Commission should decide the representative character of aunion, either by examination of membership records or if it consider necessary byholding an election by secret ballot open to all employees.Recognition of the unionsThe N.C.L. has been of the opinion that, “it would be desirable to make recognitioncompulsory under a Central Law in all undertakings employing 100 or more workersor where the capital invested in above a stipulated size. A trade union seekingrecognition as a bargaining agent from an individual employer should have amembership of at least 30 per cent of workers in that establishment. The minimummembership should be 25 per cent, if recognition is sought for an industry in a localarea”.Trade Unionism in the International ContextTo be understood in the international context, trade unionism must be examined aspart of a wider concept-the labour movement as a whole. That movement consists ofseveral more or less intimately relative related organization such as labour parties,workers’ mutual insurance organisatoins, producers’ or consumers’ cooperatives, andworkers’ education and sports association. All have the common objective ofimproving the material, cultural, and social status of their members.What distinguishes one organisation from another is the particular aspects of thatbroad objective it is endeavouring to pursue, and the particular method it employees.The relationship among the various parts of the labour movement varies from countryto country and from period to period. Not all countries have produced the entiregamut of organisation referred to above; in some countries the term “labourmovement” is virtually synonymous with “trade unionism”.Origins and background of the trade union movementEarly forms of labour organisatoins
Union oriented, mainly in Great Britain the U.S.A in the late 18 th and early 19thcenturies, as, associations of workers using the same skill. There is no connectionbetween trade unions and medieval craft guilds, for the latter were composed ofmaster craftsmen who owned capital and often employer several workers. The earlyunions were formed a partly as social clubs but soon became increasingly concernedwith improving wages and working conditions, primarily by the device of collectivebargaining. Progressing from trade to trade within the same city or area, the clubsformed local associations which, because they carried on their main activities on apurely local level, were almost self-sufficient. With industrial development, however,local associations sooner or later followed the expansion of production beyond thelocal market and developed into national unions of the same trade. These in turnformed national union federations.Factors favouring unionismThe unions of the early 19th century were almost exclusively based upon a particularcraft. But as mass production industries – which required large numbers of rapidlytrained, semiskilled workers – developed, a rend toward large-scale unionorganisation grew, and toward the end of the 19th century Great Britain was includingunskilled workers. Unions that recruited members from such groups – whose rankswere expanding rapidly as a result of new technologies – emerged either as industrialunions or as general unions. Industrial unions attempted to organize all worksemployed in producing a given product or service, sometimes including even thegeneral office or white-collar workers. General unions included skilled workers andlabourers of all grades from different industries, even though they usually started froma base in one particular industry. But changing technologies, union mergers, andideological factors led to the development of various kinds of unions that would notfit easily into any of the above categories.Obstacles to union organisationIn most Western countries, labour movements arose out of the protest of workers andintellectuals against social and political systems based upon discrimination accordingto ancestry, social status, income and property. Such a system offered few avenues forindividual or collective advancement. Discrimination in political franchise (restrictionon or outright denials of the vote) and a lack of educational opportunities, anti-unionlegislation, and the whole spirit of a society founded upon acknowledged classdistinction were the main sources of the social protest at the root of modern labourmovements.International Trade Union OrganisationThe large trade union movements of various countries for may years have maintainedloose alliances by joining international organisations of labour; federations of unions,
rather than individual unions, usually hold membership. In 1901, the InternationalFederation of Trade Unions was established, chiefly under the guidance of Germanunions. It proved to be ineffective and disappeared during World War I. In 1919 itwas revived at Amsterdam, but immediately came into collision with the RedInternational of Labour Unions, established by the new government of the SovietUnion. The Communist organisation had a brief period of expansion but soondwindled away and had disappeared before 1939.World Federation of Trade Unions (WFTU)OriginThe WFTU was founded in 1945 on a worldwide basis, representing trade unionorganisatoins in more than 50 Communist and Non-Communist countries. From heoutset, the American Federation of Labour declined to participate. In January 1949,with the WFTU under Communist control, British, USA and Netherlands trade unionorganisatoins withdrew and went on to found the ICFTU; by June 1951 all Non-Communist trade unions and the Yogoslav Federation had withdrawn.By the 1990s, after the collapse of the European Communist regimes, membershipbecame uncertain; unions broke their links with the Communist parties and most werelater accepted into the ICFTU. Most of the national trade union centers in Africa andLatin America moved to the ICFTU after 1989, and the French ConfederationGenerale du Travail has proposed withdrawal to its members.At the Nov. 1994 Congress in Damascus, most WFTU delegates come from thedeveloping countries (Cuba, India, South Korea, Vietnam).In a move towards decentralization, regional offices have been set up in New Delhi(India), Havana (Cuba), Dakar (Senegal), Damascus (Syria) and Moscow (Russia).World Confederation of Labour (WCL)Founded in 1920 as the International Federation of Christian Trade Unions, it wentour of existence in 1940 as a large proportion of its 3.4 million members were in Italyand Germany, where affiliated unions were suppressed by the Fascist and Naziregimes. Reconstituted in 1945 and declining to merge with the WFTU or ICFTU, itspolicy was based on the papal encyclicals Return novarum (1891) and Quadragesimoanno (1931), and in 1968 it became the WCL and dropped its openly confessionalapproach.Today, it has Protestant, Buddhist and Moslem member confederations, as well as amainly Roman Catholic membership. In its concern to defend trade union freedomsand assist trade union development, the WCL differs little in policy from the ICFTUabove. A membership of 11 million in about 90 countries is claimed. The biggestgroup is the Confederation of Christian Trade Unions (CSC) of Belgium (1.2 million).
OrganisationThe WCL is organized on a federative basis which leaves wide discretion to itsautonomous constituent unions. Its governing body is the Congress, which meetsevery 4 years. The Congress appoints (or re-appoints) the Secretary-General at each4-yearly meeting. The General Council which meets at least once a year, is composedof the members of the Confederal Board (at least 22 members, elected by theCongress) and representatives of national confederations, international tradefederations, and trade union organisatoins where there is not confederation affiliatedto the WCL. The Confederal Board is responsible for the general leadership of theWCL, in accordance with the decisions and directive of the Council and Congress. Itsheadquarters is at Belgium. There are regional organisation in Latin America(Caracas), Africa (Banjul, Gambia) and Asia (Manila) and a liaison centre inMontreal.A much smaller international organisation, the International Federation of ChristianTrade Unions (IFCTU), now called the WCL (World Confederation of Labour), ismade up largely of Catholic labour unions in France, Italy and Latin America. TheICFT, at its founding congress in 1949, invited the affiliates of the IFCTU to join, butthe invitation was rejected. On the international scene, the WCL has been acomparatively ineffective organisation. Its influence limited to a few countries inEurope and Latin America.International Confederation of Free Trade Unions (ICFTU)OriginThe founding congress o f the ICFTU was held in London in December 1949following the withdrawal of some Western trade unions from the World Federation ofTrade Unions (WFTU), which had come under Communist Control. The constitution,as amended, provides for cooperation with the UN and the ILO, and for regionalorganisation to promote free trade unionism, especially in developing countries. TheICFTU represents some 124m. workers across 196 affiliated organizations in 136countries.AimsThe ICFTU aims to promote the interests of the working people and to securerecognition of worker’s organisation as free bargaining agents; to reduce the gapbetween rich and poor; and to defend fundamental human and trade union rights. In1996, it campaigned for the adoption by the WTO of a social clause, with legallybinding minimum labour standards.OrganisationThe Congress meets every 4 years. It elects the executive Board of 50 membersnominated on an area basis for a 4-years period; 5 seats are reserved for women
nominated by the Women’s Committee; and the Board meets at least once a year,Various Committees cover economic and social policy, violation of trade union andother human rights, trade union cooperation projects and also the administration of theInternational Solidarity Fund. There are joint ICFTU-International Trade SecretariatCommittees for coordinating activities.The ICFTU has its headquarters at Belgium; branch offices in Geneva and New York,and regional organizations in America (Caracas), Asia (Singapore) and Africa(Nairobi)Purposes of ICFTUStriving for world peace, the spreading of democratic institutions, increasing thestandard of living for workers everywhere, a worldwide strengthening of free tradeunions, and support to colonial people in their struggle for freedom. The ICFTUconsistently opposed Fascist as well as Communist dictatorships, and implementedthat policy by giving such aid as was possible to free labour in Spain and certain LatinAmerican countries. It also furnished direct financial assistance to workers inHungary and Tibet and campaigned against racialist policies in South Africa.Failures and successes of the ICFTULack of homogeneity among affiliates hindered the activity of the ICFTU in manyfields, chiefly because of difference among its affiliates in the approach to unions inCommunist-controlled countries. It found its work to be most effective in the area ofinternational education. By 1960 it has created an international Solidarity Fund of$2,000,000 to aid workers who became victims of oppression and to promotedemocratic trade unionism in economically under developed countries. Problems ofunion organization were discussed at ICFTU seminars in various parts of the world,with experienced labour leaders and labour spokesmen from the less industrializedcountries participating.To facilitate the functioning of its widespread activities, the ICFTU establishedheadquarters in Brussels, Belgium, with regional or subregional offices in may othercountries. Form one or more of those centers it conducted numerous educationalconferences, maintained a residential trade union training college in Calcutta, Indiaand assisted in founding an African Labour College in Kampala, Uganda. It providedassistance to inexperienced works in areas in the first stages of industrialization andsent organizers to Lebanon, Okinawa, Cyprus, Cameroon, India, Indonesia, Nigeriaand elsewhere.It has been the consistent policy of the ICFTU to cooperate with the United NationsEducational, Scientific, and Cultural Organisation and with the International LabourOffice in Geneva. It is wholly financed by contributions from its affiliates.International Labour Organisation (ILO)
The International Labour Organisatoin (ILO) was set up in 1919 by the VersaillesPeace Conference as an autonomous body associated with the League of Nations. TheILO was the only international organisation that survived the Second World War evenafter the dissolution of its parent body. It became the first specialized agency of theUnited Nations in 1946 in accordance with an agreement entered into between the twoorganizations. India has been a member of the ILO since its inception. A uniquefeature of the ILO, as distinct from other international institutions, is its tripartitecharacter.The aims and objectives of ILO are set out in the preamble to its Constitution and inthe Declaration of Philadelphia (1944) which was formally annexed to theConstitution in 1946. The preamble affirms that universal and lasting peace can beestablished only if its is based upon social justice, draws attention to the existence ofconditions of labour involving injustice, hardship and privation of a large number ofpeople, and declares that improvement of these conditions is urgently requiredthrough such means as the regulation of hours of work, prevention of unemployment,provision of an adequate living wage, protection of workers against sickness, disease,and injury arising out of employment, protection of children, young persons andwomen, protection of the interests of migrant workers, recognition of the principle offreedom of association, and organisation of vocational and technical education. ThePreamble also states that the failure of any nation to adopt human conditions of labouris an obstacle in the way of other nations desiring to improve labour conditions intheir own countries.The three main functions of the ILO are; • to establish international labour standards; • to collect and disseminate information on labour and industrial conditions; and • to provide technical assistance for carrying ort programmes of social and economic development.From the very beginning, the ILO has been confronted with the tremendous task ofpromoting social justice by improving the work and conditions of life in all parts ofthe world.The ILO consists of three principal organs, namely, the International LabourConference, the Governing Body and the International Labour Office. The work ofthe Conference and the Governing Body is supplemented by that of RegionalConferences, Regional Advisory Committees, Industrial Committees, etc. Themeeting of the General Conference, held normally every year, are attended by fourdelegates from each member State, of whom two are government delegates and oneeach representing respectively the employers and the work people of the State. TheInternational Labour Conference is the supreme organ of the ILO and acts as thelegislative wing of the Organisatoin. The General Conference elect the Governing
Body, adopt the Organization’s biennial programme and budget, adopt internationallabour standards in the form of conventions and Recommendations and provide aforum for discussion of social and labour issues. The Governing Body is the executivewing of the Organisation. It appoints the Director-General, draws up the agenda ofeach session of the Conference and examines the implementation by membercountries of its Conventions and Recommendations. The International Labour Office,whose headquarters are located at Geneva, provides the secretariat for all conferencesand other meetings and is responsible for the day-to-day implementation of theadministrative and other decisions of the Conference, the Governing Body, etc. TheDirector-General is the chief executive of the International Labour Office. Animportant aspect of its work relates to the provision of assistance to member States. Italso serves as a clearing house of information on all labour matters.In order to achieve its objective, the ILO has relied on its standard-setting function.The international labour standards take the form of Conventions andRecommendations. A Convention is a treaty which, when ratified, creates bindinginternational obligations on the country concerned. On the other hand, aRecommendation creates no such obligations but is essentially a guide to nationalactions. The ILO adopted a series of Conventions and Recommendations coveringhours of work, employment of women, children and your persons, weekly rest,holidays leave with wages, night work, industrial safety, health, hygiene, labourinspection, social security, labour-management, relations, freedom of association,wages and wage fixation, productivity, employment, etc. One of the fundamentalobligations imposed on governments by the Constitutions of the ILO is that they mustsubmit the instruments before the competent national or State or provincial authoritieswithin a maximum period of 18 months of their adoption by the Conference for suchactions as might be considered practicable. These dynamic instruments continue to bethe principal means at the disposal of the ILO to strive for establishing a just,democratic and changing social order necessary for lasting peace. In fact, theseinstruments have been included in the category of “international labour legislation”.These Conventions and Recommendations taken together are known as the“International Labour Code”. Wilfred Jenks describes the International Labour Codeas the corpus juris of social justice.Review Questions 1. Trace the origin and growth of trade union movement. 2. What are the functions of a trade union? 3. What are the problems of a trade union? 4. Briefly explain the history, objectives and functions of ILO.
UNIT – III 4. Industrial Disputes 5. Grievances Handling 6. Employee Discipline
Lesson 4 Industrial DisputesMeaningAccording to Section 2(K) of the Industrial Disputes Act, 1947, and ‘industrialdispute’ means “any dispute or difference between employers and employees orbetween employers and workmen or between workmen and workmen, which isconnected with the employment or non-employment or the terms of employment orwith the conditions of labour of any person.Thus form the legal point of view, industrial dispute does not merely refer todifference between labour and capital as is generally thought, but it refers todifferences that affect groups of workmen and employers engaged in an industry.Essentially, therefore, the differences of opinions between employers and workmen inregard to employment, non-employment, terms of employment or the conditions oflabour where the contesting parties are directly and substantially interested inmaintaining their respective contentious constitute the subject-matter of an industrialdispute.Causes of Industrial DisputesThe causes of industrial conflict or disputes have been much varied. These may bedescribed partly a psychological or social and partly political, but predominantlyeconomic. Some important factors responsible for industrial conflict and poorindustrial relations many be briefly stated as follows: • Management’s general apathetic towards workers or employees because of their contention that they want more and more economic or monetary rewards and want to do less work. • Mental inertia on the part of both management and labour. • Lack of proper fixation of wages inconformity with cost of living and a reasonable wage structure generally. • Bad working conditions. • Attempts by management to introduce changes (such a rationalization, modernization or automation) without creating a favourable to appropriate climate or environment for the same. • Lack of competence or training on the part of first-line supervision as well management at upper levels in the practice of human relations.
• Assignment of unduly heavy work-loads to worker, unfair labour practices (such as victimization or undue dismissal). • Lack of strong and healthy trade unionism, lack of a proper policy of union recognition and inter-union rivalries. • A spirit of non-cooperation and a general tendency among employees to criticize or oppose managerial policies or decisions even when they may be in the right directions. • A fall in the standard of discipline among employees largely due to wrong or improper leadership, often resulting in insubordination or disobedience on the part of employees. • Difference in regard to sharing the gains of increased productivity. • Inadequate collective bargaining agreements. • Legal complexities in the industrial relations machinery or settlement of industrial disputes. • Lack of necessary changes in the working of government in accordance with changing needs and circumstances. • Combination of too much law and too little respect for law even at high levels. • Growing factional and personal difference among rank-and-file employees who are union members or union leaders and a tendency on the part of the management in some cases to prefer having with outside leaders and not give due respect to worker-leaders. • Political environment of the country; and • Agitation and wrong propaganda by selfish labour leaders to further their own interests of their own party.Forms of DisputesStrikes, lockouts and gheraos are the most common forms of disputes.Strike“Strike” means a cessation of work by a body of persons employed in any industryacting in combination; or a concerted refusal or a refusal under a commonunderstanding or an number of persons who are or have been so employed to continueto work or to accept employment.The following points may be noted regarding the definition of strike:
• Strike can take place only when there is a cessation of work or refusal to work by the workmen acting in combination or in a concerted manner. • A concerted refusal or a refusal under a common understanding of any number of persons to continue to work or to accept employment will amount to a strike. A general strike is one when there is a concert of combination of workers stopping or refusing to resume work. Going on mass casual leave under a common understanding amounts to a strike. • If on the sudden death of a fellow-worker, the workmen acting in concert refuse to resume work, it amounts to a strike (National Textile Workers’ Union Vs. Shree Meenakshi Mills (1951) II L.L.J. 516). • The striking workman, must be employed in an ‘industry’ which has not been closed down. • Even when workmen cease to work, the relationship of employers and employees is deemed to continue albeit in a state of belligerent suspension.Types of Strike • Stay-in, sit-down, pen-down strike: In all such cases, the workmen after taking their seats, refuse to do work. All such acts on the part of the workmen acting in combination, amount to a strike. • Go-slow: Go-slow does not amount to strike, but it is a serious case of is conduct. • Sympathetic strike : Cessation of work in the support of the demands of workmen belonging to other employer is called a sympathetic strike. The management can take disciplinary action for the absence of workmen. However, in Remalingam Vs. Indian Metallurgical Corporation, Madras, 1964-I L.L.J.81, it was held that such cessation of work will not amount to a strike since there is no intention to use the strike against the management. • Hunger strike: Some workers may resort to fast on or near the place of work or residence of the employers. If it is peaceful and does not result in cessation of work, it will not constitute a strike. But if due to such an fact, even those present for work, could not be given work, it will amount to strike (Pepariach Sugar Mills Ltd. Vs. Their Workmen). • Lightning or wildcat strike: A wildcat strike is an unofficial strike i.e. a strike not sanctioned by the union. Such strikes occasionally occur in violation of the no-strike pledge in collective bargaining agreements. In such a situation union is obliged to use its best efforts to end the strike. Such strikes are prohibited in public utility services under Section 22 of the Industrial Disputes Act, 1947. Further, the standing order of a company generally required for notice.
• Work-to-rule: Since there is a no cessation of work, it does not constitute a strike.LockoutSection 2(1) of the Industrial Disputes Act, 1947 defines “lockout” to mean thetemporary closing of a place of employment or the suspension of work, or the refusalby an employers to continue to employ any number of persons employed by him,lockout, thus, is the counterpart of strike – the corresponding weapon the hands ofemployer to resist the collective demands of workmen or to enforce his terms. It hasbeen held by the courts that the suspension of work as a disciplinary measure does notamount to lockout. Similarly, temporary suspension of work called lay-off is not lock-out.GheraoGherao means encirclement of the managers to criminally intimidate him to acceptthe demands of the workers. It amounts to criminal conspiracy under Section 120-Aof the I.P.C. and is not saved by Sec. 17 of the Trade Unions Act on the grounds of itsbeing a concerted activity.Regulation of strikes and lock-outsEmployees do not have an unfettered right to go on strike nor do employers have suchright to impost lockout. The Industrial Disputes Act lays down several restrictions onthe rights of both the parties. A strike or lockout commenced or continued incontravention of those restriction is termed illegal and there is serve punishmentprovided for the same.Illegal strikes and lockout are of two types: • Those which are illegal form the time of their commencement; and • Those which are not illegal at the time of commencement but become illegal subsequently. Section 22 and 23 of the IDA provide for certain restriction which if not followed make strikes and lockouts illegal from their very commencement. According to this section, no person employed shall go on strike in breach of contract- • Without giving notice of strike to the employer, as here matter provided, within 6 week before striking; or • Within fourteen days of giving such notice; or
• Before the expiry of the date of strike specified in any such notice as aforesaid; or • During the pendency of any conciliation proceedings before a Conciliation Officer and seven days after the conclusion of such proceedings.Consequences of illegal strikes and lock-outs. 1. Penalty for illegal strikes [Sec.26(1)]: Any workman who commences, continues or otherwise acts in furtherance of a strike which is illegal, shall be punishable with imprisonment for a term which may extend to 1 month, or with fine which may extend to Rs. 50, or with both. 2. Penalty for illegal lock-out [Sec.26(2): Any employer who commences, continues or otherwise acts in furtherance of a lock-out which is illegal, shall be punishable with imprisonment for a term which may extend to 1 month, or with fine which may extend to Rs. 1,000 or with both. 3. Penalty for instigation, etc. [Sec. 27]: Any person who instigates or incites others to take part in, or otherwise acts in furtherance of, a strike or lock-out which is illegal, shall be punishable with imprisonment for a term which may extend to 6 months, or with fine which may extend to Rs. 1,000 or with both. 4. Penalty for giving financial aid for illegal strikes and lock-outs [Sec. 28] : Any person who knowingly expends or applies any money in direct furtherance or support of any illegal strike or lock-out shall be punishable with an imprisonment for a term which may extend to 6 months, or with fine which may extend to Rs. 1,000 or with both.Machinery for Prevention and Settlement ofIndustrial RelationsThe machinery for prevention and settlement of the disputes has been given in thefollowing figure: Voluntary Methods Government Machinery Statutory Measures Machinery for Prevention and Settlement of Industrial Relations Code of Tripartite Worker’s Collective I.D. Act, 1947 State Acts Discipline Machinery Participation Bargaining Labour Administration (States & Central Levels) Works Conciliation Voluntary Court of Enquiry Adjudication Committee Arbitration Conciliation Conciliation Labour Industrial National Officers Board Court Tribunal Tribunal
Voluntary MethodsCode of disciplineFormally announced in 1958, the Code of Discipline provides guidelines for theworkers, unions and employers. The code which was approved by major nationaltrade unions and principal organisation of employers enjoyed on them to create anenvironment of mutual trust and cooperation and to settle the disputes by mutualnegotiation, conciliation and voluntary arbitration. It required the employers andworkers to utilize the existing machinery for the settlement of disputes.A few important provisions of code of discipline are: • Strikes and lockout cannot be declared without proper notice. • The parties should not take any action without consulting each other. • There should be no go slow statistics or any resort to deliberate damage to plant or property or resort to acts of violence, intimidation, coercion etc.The code has moral sanction only and it does not entail any legal liability orpunishment.Tripartite machineryTripartite machinery consists of various bodies like Indian Labour Conference, theStanding Labour Committee, the International Committees, the CentralImplementation and Evaluation Committee and the Committee on conventions.Generally, these committees include representatives from centre and the states, andthe same number of workers’ and employers’ organisatoins. These variouscommittees are basically of advisory nature, yet they carry considerable weightamong the government, workers and employers.Workers’ participation in management
Workers’ participation in management is an essential ingredient of industrialdemocracy. The concept of workers participation in management is based on “HumanRelations” approach to management which brought about new set of values to labourand management.According to one view, workers participation is based on the fundamental conceptthat the ordinary workers invest his labour in, and ties his fate to, his place of workand, therefore, he has a legitimate right to have a share in influencing the variousaspects of company policy”.According to G.S. Walpole, participation in management gives the workers a sense ofimportance, pride and accomplishment; it gives him the freedom and the opportunityfor self-expression; a feeling of belonging to his place of work and a sense ofworkmanship and creativity. It provides for the integration of his interests with thoseof the management and makes him a joint partners in the enterprise”.The forms of workers participation in management vary from industry to industry andcountry to country depending upon the political system, pattern of managementrelations and subject or area of participation. The forms of workers participation maybe as follows: 1. Joint Consultation Modes 2. Joint Decision Model 3. Self Management, or Auto Management Scheme 4. Workers Representation on BoardIt should be borne in mind that when individuals are provided with opportunities forexpression and share in decision-making, they show much initiative and acceptresponsibility substantially. The rationale of workers’ participation in managementlies in that it helps in creating amongst the workers a sense of involvement in theirorganisatoin, a better understanding of their role in the smooth functioning of industryand provides them a means of self-realization, thereby, promoting efficiency andincreased productivity.Collective bargainingCollective bargaining is a source of solving the problems of employees in the worksituation collectively. It provides a good climate for discussing the problems ofworkers with their employers. The employees put their demands before the employersand the employers also gives certain concession to them. Thus it ensures that themanagement cannot take unilateral decisions concerning the work ignoring theworkers. It also helps the works to achieve reasonable wages, working conditions,
working hours, fringe benefits etc. It provides them a collective strength to bargainwith the employer. It also provides the employer some control over the employees.The process of collective bargaining is bipartite in nature i.e., the negotiations arebetween the employers without a thirds party’s intervention. Thus collectivebargaining serves to bridge the emotional and physiological between the workers andemployers through direct discussions.Government MachineryThe Ministry of Labour and Employment at the centre is the key agency for the policyformulation and administration in all the matters pertaining to labour. The Stategovernments with the cooperation of their labour departments are responsible for theenforcement thereof. The Directorate General of Employment and Training (DGET),Office of Chief Labour Commissioner (CLC) (Central), the Director General of MinesSafety (DGMS), the Director General of Factory Advice and Labour Institutes, andIndustrial Tribunals are some of the agencies through which the Central Governmentdischarges its functions related to framing of labour laws and settlement of industrialdisputes. The Labour Secretary is the overall incharge of policy formulation andadministration, and commissioners of labour in the States are the operative arms forthe effective implementation of Labour Laws.Statutory Measures – Industrial Disputes Act, 1947The States are free to frame their own labour laws as the labour falls in the concurrentlist, Some States like Maharashtra, M.P., U.P. and Rajasthan have their own Acts. Inthe rest of the states, Industrial Disputes Act, 1947 applies. However, in the Stateshaving their own Acts, the IDA, 1947 will be applicable to the industries not coveredby the State Legislation. Formally announced in 1947, the Industrial Disputes Act, hasbeen amended several times since then. Under the Act the following authorities havebeen proposed for the investigation and settlement of industrial disputes.Works committeesThe IDA, 1947 provides for setting up works committees in every organisation having100 or more employees. Having representatives of employees and employees, theseare consultative bodies and are set up for maintaining harmonious relations at thework lace and sort out the difference if any. Though the act does not define thejurisdiction of these committees, yet their functions mainly include providing properworking conditions and amenities for the welfare of employees at the work place or
away from the work. A work committee aims at promoting measures for securing thepreserving amity and good relations between employees and workers.ConciliationWhen the services of a neural party are availed for the amicable solution of a disputebetween the disputing parties, this practice is known as conciliation. The IDA, 1947provides for conciliation and it can be utilized either by appointing ConciliationOfficer or by setting up Board or Conciliation.The Conciliation Officers are appointed by the Government by notifying in theOfficial Gazettee. Usually at the State level, Commissioners of Labour, Additionaland Deputy Commissioners of Labour act as Conciliation Officer for disputes arisingin any undertaking employing less than twenty workers. In the conciliation processthe officer ties to bring the disputing parties together towards a settlement of thedispute and hence works as a mediator. The intervention of conciliation officer may emandatory or discretionary. But in the disputes related to public utilities in respect ofwhich proper notice is served to him, his intervention becomes mandatory.The Board of Conciliation is a higher forum and is constituted for a specific dispute. Itconsists of equal number of representatives of employers and employees under thechairmanship of an independent person, appointed by the government. The Board hasto submit its report to the government regarding the dispute within two months fromthe date dispute was referred to it. However, depending on the case, the period can beextended.Voluntary arbitrationIndustrial Disputes (Amendment) Bill, 1956 incorporated Section 10A favouringvoluntary arbitration. In case of existed or apprehended dispute, the disputing partiescan enter into an arbitration agreement in writing. The success of voluntary arbitrationdepends on “a sufficient degree of mutual confidence in decision by agreement onsubjects which may be submitted for arbitration”.Court of enquiryThe IDA, 1947 empowers the appropriate government to constitute a Court ofEnquiry. This body basically is a fact-finding agency, constituted just to reveal thecauses of the disputes and does not care much for the settlement thereof. The Court ofEnquiry is required to submit its report to the government ordinarily within sixmonths from the commencement of enquiry. The report of the court shall be publishedby the government within 30 days of its receipt.AdjudicationIf the dispute is not settled by any other method, the government may refer it foradjudication. Hence it is a compulsory method which provides for three-tier systemfor adjudication of industrial disputes. This machinery consists of Labour Court,
Industrial Tribunals and National Tribunal. The first two bodies can be set up eitherby State or Central Government but the National Tribunal can be constituted byCentral Government only, when it thinks that the solution of dispute is of nationalsignificance. A Labour Court consists of one person only, called Presiding Officer,who is or has been a judge of a High Court. The jurisdiction of Industrial Tribunal iscomparatively wider than Labour Courts, and further the Presiding Officer of Tribunalcan have two assessors may be appointed by the Central Government to help itsPresiding Officer.Labour Courts and Tribunals are now required to submit award to the appropriategovernment within three months in case of individual disputes The submitted awardshall be published by government within 30 days from the date of its receipt. It shallcome into force on the expiry of 30 days from the date if its publication and shall beoperative for a period of one year, unless declared otherwise by the appropriategovernment.Review Questions 1. What is an industrial dispute? What are the causes of industrial disputes? 2. What are the forms of industrial disputes? 3. Explain various machineries for settlement of industrial disputes.
Lesson 5 Grievances HandlingA grievance is a sign of the employees’ discontent with job and its nature. It is causeddue to the difference between employee expectation and management practice.Beach defines a grievance as, ‘any dissatisfaction or feeling of injustice in connectionwith one’s employment situation that is brought to the notice of the management.Jucius defines a grievance as ‘any discontent or dissatisfaction, whether exposed ornot, whether valid or not, arising out of anything connected with the company whichan employee thinks, believes or even feels to be unfair, unjust and inequitable’.A grievance is a problem submitted by an employee or by a few employees ofdifferent types. It may be conce4ring a situation or may likely to affect the terms andconditions of employment of one worker or a few workers.In the Indian context, ‘grievance’ may be said to “the representation by a worker, agroup of workers or the unions to the management relation to the terms and conditionsof employment, breach of the freedom of association or the provisions of standingorders or non-implementation of the Government orders, conciliation agreeme4nts oradjudicators’ awards”. It may also include representation against non-compliance withprovision of a collective agreement in an establishment where it has been signed.Grievances usually result in definite and considerable loses to employee morale,efficiency and productivity. The accumulation of grievance leads to strikes, lock outsand other forms of conflicts. Therefore, proper disposal of grievances deserves specialand adequate consideration in any programme of harmonizing industrial relations.Areas of GrievancesGrievances resulting from working conditions • Poor physical conditions of work place. • Lack of proper tools, machines and equipments. • Frequent changes in schedules or procedures. • Rigid production standards • Improper matching of the worker with the job. • Poor relationship with the supervisor.Grievances resulting from management policy and practices
• Poor payment • Lack of job security • Inadequate benefits such as medical benefits, leave travel concession etc. • Leave facilities • Seniority • Transfer • Promotion • Lack of career planning and development • Hostility towards labour union • Defective leadership style • Communication gapGrievances resulting from alleged violations of • Violation collective bargaining agreement • Violation of Central/State laws • Violation of common rulesGrievances resulting from personal maladjustment • Over ambition • Excessive self-esteemMethods of Indentifying GrievancesThe following methods can help the employer to identify the grievances: 1. Directive observation: Knowledge of human behaviour is requisite quality of every good manager. From the changed behaviour of employees, he should be able to snuff the causes of grievances. This he can do without its knowledge to the employee. This method will give general pattern of grievances. In addition to normal routine, periodic interviews with the employees, group meetings and collective bargaining are the specific occasions where direct observation can help in unfolding the grievances.
2. Grip boxes: The boxes (like suggestion boxes) are placed at easily accessible spots to most employees in the organisation. The employees can file anonymous complaints about their dissatisfaction in these boxes. Due to anonymity, the fear of managerial action is avoided. Moreover management’s interest is also limited to the free and fair views of employees. 3. Open door policy: Most democratic by nature, the policy is preached most but practiced very rarely in Indian organizations. But this method will be more useful in absence of an effective grievance procedure, otherwise the organisation will do well to have a grievance procedure. Open door policy demands that the employees, even at the lowest rank, should have easy access to the chief executive to get his grievances redressed. 4. Exit interview: Higher employee turnover is a problem of every organisation. Employees leave the organisation either due to dissatisfaction or for better prospects. Exit interviews may be conducted to know the reasons for leaving the job. Properly conducted exit interviews can provide significant information about the strengths and weaknesses of the organisation and can pave way for further improving the management policies for its labour force.Principles or Guidelines for Grievance Handling 1. In handling grievances, a considerable amount of time must be spent in talking to employees; gathering data from them and passing on various types of information. Such talks to be most effective, should conform to definite patterns and adhere to well tested rules. 2. The manager must seek to develop an attitude towards employees that should be helpful in gaining their confidence. The management should also display a sincere interest in the problems of employees and their constructive willingness to be to help to them with a view to gain not only their confidence but also their utmost loyal by and genuine cooperation. 3. The procedure adopt by the management in handling the grievances must be apparent. 4. Grievances should be handled in terms of their total effect on the organisation and not solely their immediate or individual effect.Steps in handling grievancesIt is important that grievance must be handled in a systematic manner. The followingsteps should be taken in handling grievances: 1. Defining, describing or expressing the nature of the grievances as clearly and fully as possible;
2. Gathering all facts that serve to explain when, how, where, to whom and why the grievance occurred; 3. Establishing tentative solutions or answers to the grievances; 4. Gathering additional information to check the validity of the solutions and thus ascertain the best possible solution; 5. Applying the solution, and 6. Following up the case to see that it has been handled satisfactorily and the trouble has been eliminated.Grievance handling proceduresGrievance procedure is the most significant channel through which dissatisfaction ofemployees can be communicated to management. A grievance procedure is anordered multistep process that the employer and employee jointly use to redressgrievances and resolve disputes that arise. Thus a formal procedure which attempts toresolve the differences of parties involved, in an orderly, peaceful and expeditiousmanner, may be defined as grievance procedure or grievance redressal machinery.The steps in this machinery vary from organisation to organisation.For handling grievances, as a first step, the management is required to designate thepersons for each of the various departments to be approached by the works and thedepartment heads for handling grievances as the second step. A Grievance Committeemay also be constituted with representatives of workers and management.The model grievance producer give the various steps through which a grievanceshould be processed.First, the grievance is taken to the departmental representative of the managementwho has to give an answer within 48 hours. Failing this, the aggrieved worker/employee can beet the departmental head along with the departmental representativeof the management and this step is allotted three days. Above this, the grievance istaken up by the Grievance Committee which should make its recommendations to themanager within seven days. The final decision of the management has to becommunicated to the workers or employee concerned within three days of theGrievance Committee’s recommendations. If the employee is not satisfied, he canmake an appeal for revision and the management has to communicate its decisionwithin a week. In the case of non-settlement, the grievance may be referred tovoluntary arbitration. The formal conciliation machinery will not be invoked till thefinal decision of the top management has been found unacceptable by the aggrievedemployee.
In the case of any grievance arising out of discharge or dismissal, the workman oremployee has the right to appeal either to the dismissing authority or to a seniorauthority specific by the management within a week from the date of dismissal ordischarge.Although the grievance procedure gives the employees opportunity to raise theirgrievances to the highest possible level of management, yet they should be resolved asclose as possible to their source. The main object of grievance procedure is to resolvethe grievance at earliest possible stage. The management must convince itself thatjustice is not only done, but seen to be done and the presence of a trade unionrepresentative with the aggrieved party helps to ensure fair play not only for theemployee concerned, but also for his management. CASESandoz (India) LimitedGrievance Settlement Procedure 1. Any aggrieved employee may approach his immediate supervisor for the redressal of any complaint regarding his work, conditions pertaining to his work, etc. The supervisor will look into the complaint, discuss with his departmental head if necessary, who will, in turn, consult the Personal Department if necessary and give a reply to the aggrieved employee within a period of 3 days to one week. 2. If the aggrieved employee is not satisfied with the reply received from his supervisor, he may approach his departmental head, who will, in turn, investigate the matter personally and give a reply within a further period of 3 days to one week. 3. If the employee concerned is still not satisfied, he may approach the Factory Manager either personally or in writing for the redressal of his complaint. The Factory Manager will look into the complaint and the reply given by him will be final in the matter. Such a reply in given generally within a week. 4. If the employee still continues to be aggrieved, he may approach the Management through the Union when the matter is taken up at the Union- Management forum for settlement on tripartite basis or by adjudication/ arbitration. 5. If it is necessary for the workman to leave the work place on a call from any authority under this procedure, previous permission from his immediate superior should be obtained.
6. If a grievance arises out of an order given by the Management, the said order shall be complied with before the workman concerned invokes the procedure laid down for redressal of grievances.Review Questions 1. Define ‘grievance’ and state the causes of grievances. 2. Indicate the guidelines for handling grievances. 3. Discuss briefly grievance handling procedures.
Lesson 6 Employee DisciplineDiscipline may be defined as an attitude of mind which aims at inculcating restraint,orderly behaviour and respect for and willing obedience to a recognized authority. Inany industry discipline is a useful tool for developing, improving and stabilizing thepersonality of workers. Industrial discipline is essential for the smooth running of anorganisation, for increasing production and productivity, for the maintenance ofindustrial peace and for the prosperity of the industry and the nation. It is a process ofbringing multifarious advantages to the organisation and its employees.MeaningWebster’s Dictionary gives three meanings to the world “discipline”. First, it is thetraining that corrects, moulds, strengthens or perfects individual behaviour; second, itis control gained by enforcing obedience; and third, it is punishment or chastisement.According to Dr. Spiegel, “discipline is the force that prompts an individual or agroup to observe the rules, regulations and procedures which are deemed to benecessary to the attainment of an objective; it is force or fear of force which restraintsan individual or a group from doing things which are deemed to be destructive ofgroup objectives.Discipline is a product of culture and environment and a basic part of the managementof employee attitudes and behaviour. It is a determinative and positive willingnesswhich prompts individuals and groups to carry out the instructions issued bymanagement, and abide by the rules of conduct and standards or work which havebeen established to ensure the successful attainment of organizational objectives. It isalso a punitive or a big stick approach which imposes a penalty or punishment in caseof disciplinary violations.There are two types of discipline, one is positive and the other is negative. PositiveDiscipline employs constructive force to secure its compliance. It is immeasurablymore effective and pays a greater role in business management. Negative Discipline,on the other hand, includes both the application of penalties for violation and the fearof penalties that serve as a deterrent to violation. Positive discipline prevails onlywhere the employees have a high morale. In other situations, negative disciplinebecomes unavoidable.Aims and objectivesThe main aims and objectives of discipline are:
• To obtain a willing acceptance of the rules, regulations and procedures of an organisation so that organizational objectives can be attained; • To develop among the employees a spirit of tolerance and a desire to make adjustments; • To give and seek direction and responsibility; • To create an atmosphere of respect for human personality and human relations; • To increase the working efficiency morale of the employees; and • To impart an element of certainty despite several differences in informal behaviour patterns and other related changes in an organisation.IndisciplineThe term ‘indiscipline’ generally means the violation of formal or informal rules andregulations in an organisation. Indiscipline, if unchecked, will affect the morale of theorganisation. Hence indiscipline is to be checked by appropriate positive means tomaintain industrial peace.Causes for indiscipline in organizationsIt is more complex and difficult to identify the causes of indiscipline. The policies andprocedures of organizations, the attitude of the management towards workers, theattitude of workers, individual behaviors etc. are the causes for indiscipline.The important causes for indiscipline are: • Ineffective leadership to control, coordinate and motivate workers. • Low wages and poor working conditions. • Lack of timely redressal or workers’ grievances. • Lack or defective grievance procedure. • Character of the workers such as gambling, drinking, violet nature etc. • Political influence.Principle Of Effective DisciplineDisciplinary actions have serious repercussions on the employees and on the industry,and, therefore, must be based on certain principles in order to be fair, just andacceptable to be the employee and their unions. Therefore, in any disciplinemaintenance system, certain principles are to be observed such as:
1. The rules of discipline, as far as possible, should be framed in cooperation and collaboration with the representatives of employees for their easy implementation. Employees in a group should be associated in the process of discipline enforcement. The group as a whole can control an individual works much more effectively than the management can through a process of remote control or by imposing occasional penalties. Informal groups are likely to exert social pressures on wrong-doers avoiding the need for negative disciplinary actions.2. The rules and regulations should be appraised at frequent and regular intervals to ensure that they are appropriate, sensible and useful.3. The rules and regulations should be flexible to suit different categories of employees in the organisation, i.e., both the blue-collar workers and white- collar employees.4. The rules must be uniformly enforced for their proper acceptance. They must be applied fairly and impersonally. In other words, all defaulters should be treated alike, depending upon the nature of their offence and past record. Any discrimination or favoritism in this regard is likely to create discontent among the employees. Further, there should be a definite and precise provision for appeal and review of all disciplinary actions.5. The rules of discipline embodied in the standing orders, or in the company’s manual, must be properly and carefully communicated to every employee preferably at the time of induction for their easy acceptance. It serves as a warning and a learning process and helps to improve future behaviors of the employees in the enterprise.6. Every kind of disciplinary penalty, even if it is a rebuke or a warning, should be recorded. In some of the American industries they have what is known as the “pink slip system”. Pink slips are issued as warning signals to a defaulting employee. A person who has been issued with a stated number of pink slips will be liable to be laid-off or discharged, and no elaborate procedure has to be followed.7. The responsibility for maintaining employee discipline should be enirusted to a responsible person (e.g. a line executive), through it is the personnel officer who should be given the responsibility of offering advice and assistance. The line executive should issue only verbal and written warnings. In serious matters, which warrant suspension, discharge etc., the industrial relations departments should be consulted.8. Disciplinary actions should be taken in private because its main objectives is to ensure that a wrong behaviour is corrected and not that the wrongdoer is punished. If disciplinary actions are taken in the presence of other employees,
it may offend the sense of dignity of the employee and impair his social standing with his colleagues. Similarly, an immediate supervisor should never be disciplined in the presence of his subordinates. If this happens, it would lower his status and authority, and make it difficult, if not impossible, for him to discipline his subordinates under certain circumstances. 9. A punitive actions must satisfy the principle of natural justice. The management must act without bias and without vindictiveness, and its disciplinary actions must be based on justice and fairplay. The punishment should be commensurate with the gravity of the offence. An individual is presumed to be innocent until he is proved to be guilty. The burden of proof is on the employer and not on the employee.Approaches to Discipline EnforcementThe different approaches to discipline include- • Human Relations Approach • Human Resources Approach • Group Discipline Approach • The Leadership Approach andUnder human relations approach, the employee is treated as human being and his actsof indiscipline will be dealt from the view point of human values, aspirations,problems, needs, goals, behaviors etc. In this approach the employee is helped tocorrect his deviations.Under human resources approach, the employee is considered as ‘resource’ as anasset to the organisation. This approach analysis the cause of indiscipline frommanagement activities such as defects in selections, training, motivations, leadershipetc., after indentifying the defects, corrective steps are carried out by the management.Under group discipline approach, group as a whole, sets the standard of disciplinesand punishments for the deviations. In this approach, trade unions also act as agenciesin maintaining discipline in work situation.Under the leadership approach, in disciplinary cases are dealt on the basis oflegislations and court decisions. The Industrial Employment (Standing Orders) Act,1946 to a certain extent, prescribed the correct procedure that should be followedbefore awarding punishment to an employee.Code of DisciplineThe Fifteenth Indian Labour Conference discussed the question of discipline inindustry and lain down the following general principles:
• There should be no lock-out or strike without notice. • No unilateral action should be taken in connection with any industrial matter. • There should be no recourse to go-slow tactics. • No deliberate damage should be caused to plant or property. • Acts of violence, intimidation, coercion or instigation should not be resorted to. • The existing machinery for settlement of disputes should be utilized. • Awards and agreements should be speedily implemented. • Any agreement which disturbs cordial industrial relations should be avoided.The Code embodies four parts. Part I contains the duties and responsibilities ofemployees, workers and the government in maintaining discipline in industry. Part IIenlists the common obligations of management and unions. Part III deals with theobligations of management only, while Part IV relates to those of the unions only. Inadditions, Annexure-A to the Code embodies the national level agreement on thecriteria for the recognition of unions. A supplementary document contains the rightsof recognized unions and a model grievance procedure. Thus, the Code is highlycomprehensive and ethical in its approach to the industrial relations system. It hasbeen reproduced below.Part –I: To maintain discipline in industry (both in public and private sectors)There has to be: (i) a just recognition by employers and workers of the rights andresponsibilities of either party, as defined by the laws and agreements (includingbipartite and tripartite agreements arrived at all levels from time to time); and ii) aproper and willing discharge by either party of its obligation consequent on suchrecognition.Part – II: To ensure better discipline in industry, management and union(s) agree • that no unilateral actions should be taken in connection with any industrial matter and that disputes should be settled at appropriate level; • that the existing machinery for settlement of disputes should be utilized with the utmost expedition. • that there should be no strike or lock-out without notice; • that affirming their faith in democratic principles, they bind themselves to settle all future differences, disputes and grievances by mutual negotiation, conciliation and voluntary arbitration;
• that neither will have recourse to (a) coercion, (b) intimidation, (c) victimization, and (d) go-show; • that they will avoid (a) litigation, (b) sit-down and stay-in-strikes, and (c) lock- uts; • that they will promote constructive cooperation between their representatives at all levels and as between workers themselves and abide by the spirit of agreements mutually entered into; • that they will establish upon a mutually agreed basis a Grievance Procedure which will ensure a speedy and full investigation leading to settlement; • that they will abide by various stages in the Grievance Procedure and take no arbitrary action which would by-pass this procedure; and • that they will educate the management personnel and workers regarding their obligations to each other.Part-III Management agrees • not to increase work-loads unless agreed upon or settled otherwise; • not to support or encourage nay unfair labour practice such as: (a) interference with the right of employees to enroll or continue as union members; (b) discriminations, restraint or coercion against any employee because of recognized activity of trade unions; and (c) victimization of any employee and abuse of authority in any form; • to take prompt actions for (a) settlement of grievance, and (b) implementation of settlements, awards, decisions and orders; • to display in conspicuous places in the undertaking the provision of this Code in local language(s); • to distinguish between actions justifying immediate discharge and those where discharge must e preceded by a warning, reprimand, suspension or some other form of disciplinary action and to arrange that all such disciplinary action should be subject to an appeal through normal Grievance Procedure; • to take appropriate disciplinary action against its officers and members in cases where enquiries reveal that they were responsible for precipitate action by workers leading to indiscipline; and • to recognize the unions in accordance with the criteria (Annexure A given below) evolved at the 16th session of the Indian Labour Conference held in May, 1958.
Part-IV: Union(s) agree • not to encourage any form of physical duress; • not to permit demonstrations which are not peaceful and not to permit rowdyism in demonstration; • that their members will not engage or cause other employees to engage in any union activity during working hours, unless as provided for by law, agreement or practice; • to discourage unfair labour practices such as: (a) negligence of duty, (b) careless operation, (c) damage to property, (d) interference with or disturbance to normal work, and (e) insubordination; • to take prompt actions to implement awards, agreements, settlements and decisions; • to display in conspicuous places in the union offices, the provision of this Code in the local language(s); and • to express disapproval and to take appropriate action against office bearers and members for indulging in action against the spirit of this Code.The Code does not have any legal section but the following moral sanctions arebehind it: 1. The Central Employers’ and Workers’ Organizations shall take the following steps against their constituent units guilty of breaches of Code: • to ask the unit to explain the infringement of the Code; • to give notice to the unit to set right the infringement within a specific period; • to warn, and in case persistent violation of the Code; and • not to give countenance, in any manner, to non-members who did not observe the Code; and • not to give countenance, in any manner, to non-members who did not observe the Code. 2. Grave, willful and persistent breaches of the Code by any party should be widely publicized.
3. Failure to observe the Code would entail derecognition normally for a period of one year-this period may be increased or decreased by the implementing Committee concerned. 4. A dispute may not ordinarily be referred for adjudication if there is a strike or lockout without proper notice or in breach of the code as determined by an Implementation.The Code of Discipline worked well at the beginning of its introduction and had aconsiderable impact on the industrial relations scene. But, however, the impact of theCode was not sustained over a long period of time due to several problems in itsapplication and implementation. The spirit of the Code has not been imbibed by thecentral organisations which were signatories to it.According to the National Commission on Labour, the Code has had only limitedsuccess and was obviously not the answer to the industrial relations problems. TheCode began to rust and the parties were more eager to take it off; they developed anattitude of indifference. As regards the future of the Code, the Commission was infavour of giving a legal form to its important provisions regarding recognition ofunions, grievance procedure, unfair labour practices, and the like. With the removal ofthese provisions from the Code to give them a statutory shape, the Code will have nouseful function to perform.Discipline is a two-way traffic and a breach of discipline on the part of either party inindustry will cause unrest. The approach to managing discipline depends to a greatextent upon managerial philosophy, culture and attitude towards the employees. Anegative approach to discipline relies heavily on punitive measures and in the linewith the traditional managerial attitude of “hire and fire” and obedience to orders. Onthe other hand, a constructive approach stress on modifying forbidden behaviour bytaking positive steps like educating, counseling etc., The concept of positive disciplinepromotion aims at the generation of a sense of self-discipline and disciplinedbehaviour in all the human beings in a dynamic organizational setting, instead ofdiscipline imposed by force or punishment. In brief, the approach to the disciplinaryaction in most cases should be corrective rather than punitive.Review Questions 1. What are the causes of indiscipline? 2. What are the principles of effective discipline? 3. State the principles of code of discipline.
UNIT – IV7. Workers Participation in Management8. Collective Bargaining9. Wage Administration and IndustrialRelations
Lesson 7 Workers’ Participation in ManagementWorkers participation in management is in essential ingredient of industrialdemocracy. The concept of workers participation in management is based in “HumanRelations” approach to management which brought about new set of values to labourand management.Traditionally, the concept of Workers’ Participation in Management (WPM) refers toparticipation of non-managerial employees in the decision-making process of theorganisation. Workers’ participation in management meets the psychological needs ofthe workers to a greater extent. That way it may also be treated as the process ofdelegation of authority in the general areas of managerial functions.According to one view, workers participation is based on the fundamental conceptthat the ordinary worker invest his labour in, and ties his fate to, his place of workand, therefore, he has a legitimate right to have a share in influencing the variousaspects of company policy”.To quote the version of British Institute of Management, “Workers’ participation inmanagement is the practice in which employees take part in management decisionsand it is based on the assumption of commonality of interest between employer andemployee in furthering the long term prospects of the enterprise and those working init”.According to G.S. Walpole, participation in management gives the workers a sense ofimportance, price and accomplishment; it given him the freedom and the opportunityfor self-expression; a feeling of belonging to his place of work and a sense ofworkmanship and creativity. It provides for the integration of his interest with those ofthe management and makes him a joint partner in the enterprise”.Dr. Alexander considers a management to be participative, “if it gives scope to theworkers to influence its decision making process on any level or sphere or if it shareswith them some if its managerial prerogatives”.Clegg says, “It implies a situation where workers representatives are, to some extent,involved in the process of management decision making, but where the ultimatepower is in the hands of the management”.According to Dr. Davis, “it is a mental and emotional involvement of a person in agroup situation which encourages him to contribute to goals and share responsibilitiesin them”.
According to Dr. Davis, “it is a mental and emotional involvement of a person in agroup situation which encourages him to contribute to goals and share responsibilitiesin them”.In should be borne in mid that when individuals are provided with opportunities forexpression and share in decision-making, they show much initiative and acceptresponsibility substantially. The rationale of workers’ participation in managementlies in that it helps in creation amongst the workers a sense of involvement in theirorganisation, a better understanding of their role in the smooth functioning of industryand provides them a means of self-realization, thereby, promoting efficiency andincreased productivity.Thus the concept workers’ participation in management encompasses the following: • It provides scope for employees in the decision making of the organisation. • The participation may be at the shop level, departmental level or at the top level. • The participation includes the willingness to share the responsibility by works as they have a commitment to execute their decisions. • The participation is conducted through the mechanism of forums which provide for association of workers representatives. • The basic idea is to develop self control and self discipline among works, so that the management become “Auto Management”.ObjectivesThe scheme has economic, psychological, ethical and political objectives. • Its psychological objective of the scheme is to secure full recognition of the workers. Association of worker with management provides him with a sense of importance, involvement and a feeling of belongingness. He considers himself to be an indispensable constituent of the organisation. • Socially, the need for participation arises because modern industry is a social institution with the interest of employer, the share-holders, the community and the workers equally invested in it. • The ethical objective of participation is to develop workers free personality and to recognize human dignity. • The political objective of participation is to develop workers conscious of their democratic rights on their work place and thus bring about industrial democracy.
Levels of ParticipationWorkers’ participation is possible at all levels of management; the only difference isthat of degree and nature of application. For instance, it may be vigorous at lowerlevel and faint at top level. Broadly speaking there is following five levels ofparticipation: 1. Information participation: It ensures that employees are able to receive information and express their views pertaining to the matters of general economic importance. 2. Consultative participation: Here works are consulted on the matters of employee welfare such as work, safety and health. However, final decision always rests at the option of management and employees’ views are only of advisory nature. 3. Associative participation: It is extension of consultative participation as management here is under moral obligation to accept and implement the unanimous decisions of employees. 4. Administrative participation: It ensure greater share of works in discharge of managerial functions. Here, decision already taken by the management come to employees, preferably with alternatives for administration and employees have to select the best from those for implementation. 5. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relation to production, welfare etc. is called decisive participation.Forms of Workers’ Participation in ManagementThe forms of workers participation in management vary from industry to industry andcountry to country depending upon the political system, pattern of managementrelations and subject or area of participation. The forms of workers participation maybe as follows: 1. Joint Consultation Model 2. Joint Decision Model 3. Self Management, or Auto Management Scheme 4. Workers Representation on Board 1. Joint consultation model: In joint consultation model the management consults with the workers before taking decisions. The workers represent their
view through ‘Joint consultative Committees’. This form is followed in U.K., Sweden and Poland. 2. Joint decision model: In this form both the workers and management jointly decide and execute the decisions. This form of participation is followed in U.S.A. and West Germany. 3. Self management of auto management: In this model, the entire control is in the hands of workers. Yugoslavia is an example to this model. Where the state industrial units are run by the workers under a scheme called ‘Self Management or Auto Management Scheme’. 4. Workers’ representation on board: Under this method, the workers elect their representative and send them to the Board to participate in the decision making process.The participation of workers may be formal or informal. In the formal participation, ittakes the forms of formal structures such as Works Committee, Shop Councils,Production Committee, Safety Committee, Joint Management Councils, CanteenCommittee etc. The informal participation may be such as the supervisor consultingthe workers for granting leave, overtime, and allotment of worked or transfer ofworkers from one department to another.Workers’ Participation in Management in IndiaWorkers participation in management in India was given importance only afterindependence. Industrial Disputes Act of 1947 was the first step in this direction,which recommended for the setting up of Works Committees. The Joint ManagementCouncils were established in 1950 which increased the participation of labour inmanagement. The management scheme, 1970 gave birth to ‘Board of Management’.Since July 1975, the two-tire participation model called ‘Shop Council’ at the shoplevel and ‘Joint Councils’ at the enterprise level were introduced.Based on the review and performance of previous schemes a new scheme wasformulated in 1983. The new scheme of workers participation was applicable to allcentral public sector enterprises, except those specifically exempted. The scheme withequal number of representatives will operate both at shop as well as plant level. Thevarious functions of participative forum laid down in the scheme could be modifiedwith the consent of parties. The scheme could not make such head way due to lack ofunion leaders consensus of the mode of representation and workers’ tendency todiscuss ultra-vires issues e.g. pay scales, wages etc.Prior to WPM Bill, 1990 all the schemes of participation were non-statutory andconcentrated on particular levels. For effective and meaningful participation at alllevels, a bill was introduced in Parliament on 25 th May, 1990. The bill provide foreffective participation at all level by formulating schemes of participation. Forelecting representatives for participation it also provides for secret ballot. The
appropriate government may also appoint inspectors to review participation schemesand the bill also has provision of punishment for those who contravene any of theprovision of the Act.Thus the workers’ participation schemes in India provide wide scope for applicationand upliftment of workers. But in practice, these schemes have not met with successthough they are successful in some private sector units. The factors responsible for thefailure are: • Attitude of the management towards the scheme is not encouraging. The preventatives of workers are not given due recognition by the management. • The attitude of trade unions towards the schemes is negative as they consider these schemes are reducing the power of Trade Unions. Some Trade Unions boycott Joint Management Council meetings. The success these schemes require certain conditions. • Management should appreciate the scheme and accept them in full faith. • Trade unions have to cooperate with the schemes. • Workers have to be educated.Thus workers’ participation in management in India has yet to succeed. It can be doneby educating the workers, creating an environment in the organisatoin forcoordination of workers and management.Review Questions 1. What do you understand by the concept of workers’ participation in management? What are its objectives? 2. What are the different forms of workers’ participation in management? 3. Discuss the concept of workers’ participation in management in the Indian context.
Lesson 8 Collective BargainingIn the work situation, an individual worker has to face many problems such as, lowwages, long hours of work, loss incentive etc. These problems of an individual or fewindividuals cannot attract the attention of the employer because of their lessbargaining power. The growth of trade union increased the bargaining strength ofworkers and enables them to bargain for their better conditions collectively.Collective bargaining is a source of solving the problems of employees in the worksituation collectively. It provides a good climate for discussing the problems ofworkers with their employers. The employees put their demands before the employersand the employers also give certain concession to them. Thus it ensures that themanagement cannot take unilateral decision concerning the work ignoring theworkers. It also helps the workers to achieve responsible wages, working conditions,working hours, fringe benefits etc. It provides them a collective strength to bargainwith employer. It also provides the employers some control over the employees.The process of collective bargaining is bipartite in nature, i.e. the negotiations arebetween the employers and employees without a third party’s intervention. Thuscollective bargaining serves to bridge the emotional and physiological gulf betweenthe workers and employers though direct discussions.MeaningThe term collective bargaining is made up of two words, ‘collective’ – which means a‘group action’ through representation and ‘bargaining’, means ‘negotiating’, whichinvolves proposals and counter-proposals, offers and counter-offers. Thus it meanscollective negotiations between the employer and the employee, relating to their worksituations. The success of these negotiations depends upon mutual understanding andgive and take principles between the employers and employees.DefinitionsCollective bargaining has different meanings for different individuals or groups.Trade Unions, management and public interpret the term in their own ways. Let usnow discuss some leading definitions:According to the Encyclopedia of social sciences, “Collective bargaining is a processof discussion and negotiation between two parties, one or both of whom is a group ofpersons acting in concert. The resulting bargain is an understanding as to the termsand conditions which a continuing service is to be performed. More specifically,collective bargaining is a procedure, by which employer and a group of employeesagree upon the conditions of work”.
Richardson says, “Collective bargaining takes place when a number of work peopleenter into negotiation as a bargaining unit with an employer or a group of employerswith the object of reaching agreement on conditions of the employment of the workpeople”.The I.L.O. workers manual defines collective bargaining as, “negotiation aboutworking conditions and terms of employment between an employer, a group ofemployers or one or more employer’s organizations, on the one hand, and one or morerepresentative workers organisation on the other with a view of reaching anagreement.Salient Features • It is a collective process in which representatives of employers and employees participate mutually. • It is a flexible and dynamic process wherein no party adopt a rigid attitude. • It is a bipartite process whereas the representatives of workers and management get an opportunity for clear and face to face negotiation. • It is a continuous process which can establish regular and stable relationship between worker’s organisatoin and management. • It is a practical way to establish an industrial democracy. • It is a good method of promoting industrial jurisprudence. • It is good form of interdisciplinary system (i.e. a function embodying economic psychological, administrative, ethical and other aspects.) • It is a process that includes efforts from preliminary preparations to the presentation of conflicting view points, collection of necessary facts, understanding of view points, taking correct decisions etc.ImportanceWhatever labour laws may lay down, it is the approach of employers and trade unionswhich matters and unless both are enlightened, industrial harmony is not possible.Therefore, the solution to common problems can be found directly throughnegotiation between both parties and in this context the scope of collective bargainingis very great.Collective bargaining is really beneficial forms the stand part of employees and theirunions as well as management. If it works well, it develops a sense of self-responsibility and self-respect among the employees concerned and thus significantlypaves the way for improved employee morale and productivity.
Collective bargaining restricts management’s freedom for arbitrary action and therebymanagement learns a new code of behaviour by conceiving of the union as a methodof dealing with employees. The management also comes to know the grievances ofworkers in advance and it gives an opportunity to take precautionary measure.Moreover, collective bargaining opens u the channel of communication between topand bottom levels of an organization.From the point of the view of the society, collective bargaining; if propertyconducted, result in the establishment of a harmonious industrial climate which helpsfor the socio-economic development of the nation. It builds up a system of industrialjurisprudence by introducing civil rights in industry and ensures that management isconduct by rules rather than by a arbitrary decisions. It extends the democraticprinciples from the political to industrial field.FunctionsProf. Butler has viewed the functions as: • a process of social change • a peace treaty between two parties • a system of industrial jurisprudenceCollective bargaining as a process of social changeCollective bargaining enhances the status of the working class in the society. Wageearners have enhanced their social and economic position in relation to other groups.Employers have also retained high power and dignity through collective bargaining.Collective bargaining as a peace treatyCollective bargaining serves as a peace treat between the employers and employees.However the settlement between the two parties is a compromise.Collective bargaining as an industrial jurisprudenceCollective bargaining creates a system of “Industrial Jurisprudence”. It is a method ofintroducing civil rights into industry. It establishes rules which define and restrict thetraditional authority exercised by employers over their employees placing part of theauthority under joint control of union and management.In addition to the above, its functions include: • Increasing the economic strength to employers and employers. • Improving working conditions and fair wages.
• Maintaining peace in industry • Prompt and fair redressel of grievances. • Promoting stability and prosperity of the industry.Principles of Collective BargainingThe success of collective bargaining is based on certain principles. These principlesare to be followed by the employers and unions. Prof. Arnold. F. Campo has laiddown certain principles for union and management, for management and for union.For both union and management 1. Collective bargaining process should give due consideration to hear the problems on both sides. This will develop mutual understanding of a problem which is more important for arriving at the solutions. 2. Both the management and union should analyze the alternatives to arrive at the best solution. 3. There must be mutual respect on both the parties. The management should respect the unions and the unions should recognize the importance of management. 4. Both the union and management must have good faith and confidence in discussion and arriving at a solution. 5. Collective bargaining required effective leadership on both sides, on the union side and management side to moderate discussions and create confidence. 6. In collective bargaining both the union and management should observe the laws and regulations in practice in arriving at a solution. 7. In all negotiations, the labour should be given due consideration – in wage fixation, in working conditions, bonus etc.For management 1. Management should think of realistic principles and policies for labour regulations. 2. The recognitions of a trade union to represent the problems is more essential. If there are more than one union, the management can recognize on which is having the support of majority of workers. 3. Management should follow a policy of goodwill, and cooperation in collective bargaining rather than an indifferent attitude towards the union.
4. Managements need not wait for trade union to represent their grievances for settlement. Management can voluntarily take measures to settle the grievances. 5. Managements should give due consideration to social and economic conditions of workers in collective bargaining.For unions 1. Unions should avoid undemocratic practices. 2. Unions have to recognize their duties to the management also before emphasizing their demands. 3. Unions have to consider the benefits to all workers rather than a section of workers. 4. Strike lock-outs should be resorted to, only as a last measure. As far as possible they have to be avoided by compromise and discussion.Forms of Collective BargainingThe forms of collective bargaining differ from country to country and time to time inIndia. Collective bargaining takes the following forms: 1. Settlements under industrial disputes act: According to this, negotiations are carried out by officers according to the Industrial Disputes Act. 2. Settlements by parties: In this case settlements are arrived at by parties themselves without the interference of a third party. 3. Consent awards: Here the agreements are negotiated by the parties on a voluntary basis when disputes are subjudiced. Later these are submitted to the labour courts. 4. Direct negotiation: In this agreements are arrived at by both the parties after direct negation. The enforcement of these agreements depends upon the goodwill and cooperation of the parties.On the basis of the level (in which collective bargaining takes place) it can beclassified as: 1. Plant level bargaining 2. Industry level bargaining 3. National level bargainingPlant level bargaining
It is the micro level bargaining. It takes place in the particular unit between themanagement and the trade unions of that unit.Industry level bargainingSeveral unions of the same industry form and association and negotiate with theemployers.National level bargainingIn this, the representatives of trade unions and employers at the national level willnegotiate.The Contents of Collective Bargaining AgreementsThe scope of collective bargaining has increased during the recent years. Prof. Randleobserves that the increase in the scope of collective bargaining is due to the growth oftrade unions, increased response by the managements, increased response by themanagements, increased prices and the legislations.Problems relating to security of trade unions, wages, promotions, transfers, hours andconditions or work, holidays and leave with wages, safety and health etc. are includedin the collective bargaining.The Institute of Personal Management includes the following in a collectiveagreement. • Nature, scope, definition and purpose of agreement. • Rights and responsibilities of management and trade unions. • Wages, bonus, production norms, leave, retirements benefits and other benefits and terms and conditions of service. • Grievance redressal procedure. • Methods and machinery for the settlements of possible future, disputes, and • A termination clauseThus collective bargaining includes not only the negotiation of wages, but alsoworking condition, labour welfare and organizational matters.Process of Collective Bargaining
The process of collective bargaining consists of two stages, (i) the negotiation state,and (ii) the contract administration.Negotiation StageAt the negotiation stage certain proposals are put forward for mutual agreement aftercareful consideration. The negotiation stage consists of three steps. • Preparation for negotiation • Negotiation procedure • Follow up actionPreparation for negotiationFirst the union will submit their fresh contract to the management before the expiry ofexisting contract (usually 30 to 60 days before the expiry). Both the management andunions will take considerable time to the preparation and negotiation.They collect the required data relating to large number of issues such as wage, salary,seniority, overtime allowance, the cost of living, the policies of trade unions andmanagement, nature of agreement in other companies etc.The company will collect such information its internal sources – such as balancesheet, contract agreements, market research reports, Govt. reports etc. The trade unionalso collects such data from their own central organisation, research staff from variousDepartment etc.The personal department prepares a personal, which includes – • Specific proposals of the company including the objectives of negotiation. • Estimating the cost of implementing the proposals. • Classifying the demands as demands acceptable before negotiation, demands acceptable after negotiation, demands which cannot be accepted. Such proposals are based on company’s commitment to shareholders, consumers, workers and public.Negotiation technique or procedureIn this step, a negotiation committee is to be formed by both the parties. From themanagement side the representative include the chief executives. The unions isrepresented by the leaders and centrals leaders. The committee consists of three to sixmembers.The demands are classified as demands which need bargaining and demands whichmay be rejected. During negotiations, normally the easier demands are taken up first.
Both parties should have a “bargaining cushion”, and make counter proposals. Forexample, a demand for wage increase by the union, may be accompanied by a counterproposal for increase in production by the management. Such negotiations go on tillthe “point of no return” is being reached. A rigid or irrevocable stance should alwaysbe avoided.Follow-up actionAt this stage, the agreement is printed and circulated among all the employees. Thesupervisors will be enlightened about the agreements for their effectiveimplementation.Contract AdministrationAgreement will be useful if they are executed properly. As observed by Profs.Illiamson and Harries, “if anything is more important to industrial relations than thecontract itself, it is the administration of the contract”.Prof. Campo has laid down the following general principles for administering thecontact effectively; • Cooperation between both the parties is essential. Both the parties should have a tolerant attitude towards each other and have a spirit of accommodation and goodwill. • Proper procedure should be adopted for the redressal of grievances by providing opportunity to exchange views. • When a conference over the redressal of grievance reaches an impasse, the grievance should be referred to arbitration. • Both the parties should honour the commitment.Pre-requisite for Successful Collective BargainingCollective bargaining will be more effective under the following conditions:Negotiating teamNegotiating team should represent all groups including production, finance andindustrial relations experts. The team should be headed by an appropriate person withadequate authority to take decisions.Recognition of unionsThe management should recognize the trade union and analyze the facts in theirrepresentation of grievances. Mutual understanding encourages mutual agreement.Open mind
Both the management and union should have open minds to listen and appreciate eachothers point of view with flexibility and adjustment.‘Home Work’ on demandsThe union and management have to collect relevant data relating wages, conditions ofwork, welfare schemes, cost of benefits.Routine problemsThe management and unions have to identify the grievances on routine basis and takeappropriate action then and there.Internal union democracyTrade unions should encourage internal union democracy by consulting the rank andfile members.Importance to outputTrade unions should also give importance to output, quality of the products,company’s image etc., in addition to their wages, bonus, working conditions etc.Strikes/ lockoutsStrikes and lockouts should be resorted to as last measure. Before taking any decision,both the union and management should conduct periodic discussions to avoid strikesand lockouts.Collective bargaining has gradually been taking roots in Indian soil. Most of thecollective bargaining agreements were concluded at plant level. Some industry levelagreements were also concluded in textile industries in Bombay and Ahemadabad.The scope is widening. It includes matters relating to productivity, bonus,modernization, standing orders, voluntary arbitration, incentive schemes and jobevaluation etc. The number of agreement has been increasing. Most of the agreementswere relating to wages. In a study conducted by E.F.I. shows that out of 109agreements 96 were relating towages.Thus collective bargaining is an important method of solving problems, thoroughmutual understanding. If used properly it can solve the problems of both the parties-management and union through mutual confidence.Collective bargaining is also used as a tool for bringing coordination between workersand managements. It also serves as tool of communication of views by bothmanagement and works. In the long-run it will serve as an instrument for labourparticipation in management and pave way for he cordial industrial relations in India.Collective bargaining in central public sector undertakings
Collective bargaining in central public sector undertakings is done according to theguidelines issued by the Departments of Public Enterprises (earlier known as theBureau of Public Enterprises). This department gives the content and limits offinancial commitments which a public enterpriser can make with the union during thecourse of bargaining. However, in many instances these4 limits are circumvented bythe management by making gentleman’s promises with the unions on several issuesoutside the written agreement and implementing these promises over a period throughadministrative orders.In core industries like steel, ports and docks and banks, collective bargaining is doneat the national level for the industry as a whole. Thus, in steel industry, one maincollective agreement is entered into by the National Joint Consultative Forum onbehalf of all private and public sector steel units with other unions. This is followedby several supplementary agreements being entered into at the plant level to coveraspects not resulted in creating uniform wage structures and fringe benefit patterns inall public sector units irrespective of the nature of industry (labour or capitalintensive) and the paying capacity of a unit as determined by its financialperformance. This is in sharp contrast to a private sector unit where its wages andfringe benefits are more geared to its specific requirements and circumstances.Review Questions 1. What do you understand by “collective bargaining”? What is its scope? 2. Enumerate the principles of collective bargaining. 3. What are the pre-requisites for successful collective bargaining?
Lesson 9 Wage Administration and Industrial RelationWage is remuneration to labour for the work done or he service rendered by it to theemployees. Wage payment if the most vital and important problem that an industrialworkers is confronted with It is also one of the most difficult areas in our presentindustrial relations system. The wages constitute the earning for the workmen, which,in turn, determine his standard of living and that of his family. They also determinethe standard of his efficiency and consequently, the level of productivity. Wageadministration is also important to the employer as it constitutes one of the principal8items that enter into the cost of production of his product. The government and thecommunity at large are also vitally concerned with the problem because of a largenumber of industrial disputes center round the questions of wages and allowances.Therefore, evolution of a suitable wage structure and wage fixing machinery isimportant for the prosperity of industry, for the well-being of labour, and for theeconomic development of the country. However the problem of wage fixation in amodern democratic society is by for the most difficult of all employer-employeerelationship. The concerned parties, namely, the employers, the works and theconsumers have seemingly conflicting interests. A delicate balance has to be struckbetween wages paid to the workers, the profits passed on to the shareholders, and theservices rendered to the community. It cannot also be considered in isolation from thelarger economic and social background prevailing in the country.Wage PolicyThe term ‘wage policy’ refers to legislation or government action undertaken toregulate the level or structure of wages, or both for the purpose of achieving specificobjectives of social and economic policy. The social objectives of wage policy mayaim at eliminating the exceptionally low wages, the establishing of fair standards, theprotection of wage earners from the impact of inflationary tendencies; and atincreasing the economic welfare of the community as a whole. “The social andeconomic aspects of wage policy are normally inter-related; measures inspired bysocial considerations inevitably have economic effects and action designed to achievespecific economic results has social implications. When the social and economicimplication of measures of wage-policy conflict, a choice has to be made”.A wage policy may be viewed from three different angels. At the macro economiclevel, the problem is that of resolving the conflict between the objectives of animmediate rise in the standard of living of workers, additional employment andcapital formation. At the semi-aggregative level, the problem is that of evolving awage structure which is conducive to economic development. At the plant level, the
problem is that of a system which provides incentives to increasing productivity andimproving the quality of workers.Objectives of a Wage PolicyThe ILO publication has enumerated the following objectives of a wage policy indeveloping countries: • To abolish malpractices and abuses in wage payment. • To set minimum wages for workers whose bargaining position is weak because they are unorganized or inefficiently organized, accompanied by separate measures to promote the growth of trade unions and collective bargaining. • To obtain for the workers a just share in the fruits of economic development, supplemented by appropriate measures to keep workers’ expenditure on consumption goods in step with available supplies so as to minimize inflationary pressure; and • To bring about a more efficient allocation and utilization of manpower through wage differentials and where appropriate, systems of payment by results. In India, the objectives of a national wage policy may be stated thus: • To provide minimum wages to workers employed in sweated industries • To fix wage ceilings • To improve the existing wage-structure • To control inflationary tendencies • To accelerate export promotion and • Other objectives.Provision of minimum wages in sweated industriesIn a country like India, where labourers are exploited in the sweated industries, thebasic need is to provide for “safety net” wages to prevent its exploitation. Accordingto Turner, “The protection of workers against exploitation or unduly low wagesremains wager policy’s major pre-occupation for the under-developed areas”. Thefixing of minimum wage is also necessary to boost up industrial employment, partlyto smooth the flow of labour from the farm to expanding modern industries; and
partly to cover the differentials in wage rates so that wages paid to employees doingidentical work are rationalized. Thus, the wage policy should aim at a minimum wagein sweated occupation as well as a floor for entry to industrial employment.Fixation of wage ceilingsCeilings on wages need be fixed to save employees from the pinch of inflationarytendency that follow from uncontrolled price movement. The workers should get ajust share in the fruits of economic development and increased productivity.Productivity and efficiency can be boosted by giving incentives to them and byimproving the investment capacity of industries by plaughing back a part of the profitin the industry.Improvement in existing wage structureDesirable or rational wage structure facilitates the acquisition of productive skills,serves as an incentive to higher productivity and wage income, and encourages theallocation of labour to the expanding sectors of economy in which labour is in greatdemand. Justice and fairness demand that a sound relationship should exist betweenrates of ay for different groups in similar occupations.The jobs which demand a higher degree of skill, training, experience, responsibility,mental and physical effort and hazards should be paid more than those having lowerrequirement. According to Clark Kerr, “improving worker efficiency andperformance, encouraging the acquisition of skills and providing and incentive oflabour mobility should be the real purpose of a wage policy in a developingeconomy”.Control over inflationary tendenciesControlling inflationary pressures should be an essential element of wage policy, forincreasing prices erode workers’ real income and lower down their standard of livingand ultimately cause industrial unrest. The wage policy should, therefore, aim atstabilizing prices by tying wage increases to productivity.Acceleration of export promotion To get imports of essential capital goods, technical know-how, trained manpower andraw materials, foreign exchange need be earned by promoting exports throughincreased productivity of exportable goods and price stability or price reductionwherever possible. A wage policy should help to accelerate a nations’ developmentprocess.
Other objectives • To bring social justice to workers and equal opportunities of personal development through the development of socialistic pattern of society; as provided by the Directive Principles of the State Policy in the Constitution. • To maintain industrial peace, which cannot be achieved only through statutory measures and ban on strikes and lockouts and compulsory arbitration • To provide guidance to various authorities charged with the task of wage fixation and revision. • To develop the skill of newly recruited industrial labour and other manpower resources.Dr. Giri has said, “ A national wage policy must aim at establishing wages at thehighest possible level, which the economic conditions of the country as a wholeresulting from economic development”.Thus, it may be said that “the protection of workers against exploitation or unduly lowwags, improving workers’ efficiency and performance, encouraging acquisition ofstrikes, providing and incentive to labour mobility, stabilizing prices and accelerationof the nation’s development process should be the real purpose and the need for anational wage policy.”It may be observed that no serious attempt has so far been made at the level, forformulating a national wage policy; and there does not appear to be a formallyproclaimed wage policy in India.Wage Regulation MachineryIn unorganized industries, wages are fixed and revised under the Minimum WagesAct, 1948. But for other industrial workers, they are fixed by several well-establishedprocedures or practices available for wage-fixation and wage revision. These aresettlements in conciliation of wage disputes, collective bargaining at the plant level,bipartite wage revision committees in several industries, adjudication, and arbitration.Lately, Wage Boards have also been created.Wage BoardWage Board is a tripartite body, having representation of the employers and labourbesides, independent members. The representatives of the former two interests arenominated by their central organisatoins; others are nominated by the Government. Itis an important machinery of State regulation of wages.Growth and development
After independence, the Industrial Disputes Act was enacted under which disputedregarding wages could be settled through adjudication. But the parties were notsatisfied with this system. The idea of setting up of tripartite Wage Boards was,therefore, mooted and endorsed in the First Plan. But no action was taken during thatPlan period.However, the Second Plan emphasized the need to determine wages through industrialwage boards. It observed, “the existing machinery for settlement of wage disputes hasnot given full satisfaction to the parties concerned. A more acceptable machinery forsettling wage disputes will be one which gives he parties themselves a moreresponsible role in reaching decisions. An authority like a tripartite Wage Board,consisting of equal representative of employers and workers and an independentchairman will probably ensure more acceptable decisions. Such wage boards shouldbe instituted for individual industries in different areas”.This recommendation was subsequently reiterated by the 15th Indian LabourConference in 1957 and various Industrial Committees. The Government decision toset up the first wage board in cotton textile and sugar industries in 1957 was alsoinfluence by the Report of the ILO’s expert.Composition and functions of wage boardThe composition of wage boards is, as a rule, tripartite representing the interests oflabor, management and the public. Labour and management representatives aremaintained in equal numbers by the government, with consultation and consent of themajor central organizations. Generally, the labor and management representatives areselected from the particular industry being investigated. These boards are chaired bygovernment-nominated members representing the public.They function industry-wise with broad terms fo reference, which includerecommending the minimum wage, differential cost of living compensation, regionalwage differentials, gratuity, hours of work, etc.The Wage Boards are required to: • determine which categories of employees (manual, clerical, supervisory etc.) are to be brought within the scope of the wage fixation; • to work out a wage structure based on principles of fair wages as formulated by the Committee on Fair Wages. • the system of payment by results; • to work out the principles that should govern of bonus to workers in respective industries.
In addition to these common items, some wage boards may also be asked to deal withthe question of “bonus” (like that of the wage boards for cement, sugar and juteindustries); gratuity (like that of the wage boards for the iron ore mining, limestoneand dolomite mining industries and the second wage board on cotton textile industry;demands in respect of payments other than wages (wage boards of jute and iron andsteel industry); hours of work ( rubber plantation industry), interim relief (like that ofthe wage boards for jute industry and port and dock workers).Some wage boards (like that of the wage boards for sugar, jute, iron ore, rubber, teaand coffee plantation, limestone and dolomite mining industries) have been requiredto take into account the ‘special features of the industry’.Thus, wage boards have to deal with a large range of subjects of which the fixation ofwage-scales on an industry-wise basis constitutes the biggest of all the issues beforethem.Evaluation of wage boardsThe Committee set up by the National Commission on Labour identified three majorproblems from which the wage boards suffer: • Majority of the recommendations of wage boards are not unanimous; • The time taken by the wage boards to complete their task has been rather unduly long; and • Implementation of the recommendations of the wage boards has been difficult. The Committee made some important recommendations as below: • The Chairman of the wage board should be selected by common consent of the organisation of employees and employees in the industry concerned. • In future the wages board should function essentially as a machinery for collective bargaining and should strive for unity. • Wage boards should be assisted by technical assessors and experts. • Terms of reference of wage boards should be decided by Government in consultation with the organisation of employers and the workers concerned. • A central wage board should be set up in the Union Ministry of Labour on a permanent basis to serve all wage boards through the supply of statistical and other material and lending of the necessary staff. • Unanimous recommendations of wage boards should be accepted and in case of non-unanimous recommendations, government should hold consultations
with the organisation of employers and employees before taking a final decision. • Wage boards should not be set up under any statues, but their recommendations as finally accepted by the Government should be made statutorily binding in the parties. • For Industries covered by wage boards, a permanent machinery should be created for follow-up action; and • Wage-boards should complete their work in one year’s time and the operation of the recommendation of a wage board should be between two or three years, after which need for a subsequent wage boards should be considered on merit.In these recommendations are accepted, the working of wage boards may be mademore effective.The institution of wage boards has come to be widely accepted in India as a viablewage determination mechanism. Both unions and employers’ organizations havesupported it from its very inception, and have been willing to accept changes to makeit more efficient and productive. It has succeeded in promoting industry-wisenegotiations, as contrasted to enterprise-level decisions under adjudications, moreacceptable agreements on wages and other conditions of employment of industrialpeace. Furthermore, in addition to encouraging greater participation by the parties andfreedom in decision-making, the boards have functioned with responsibility andrestraint and their recommendations have not undermined the efficiency of theindustry.However, delays involved in actual working of the boards and imperfectimplementation of the reconditions has been often the cause of anxiety, but these canbe reduce considerably if collection and tabulation of basic information and relevantdata on wage fixation is done on a running and continuing basis in respect of all majorindustries/ employments.Review Questions 1. What is a wage policy? What are its objectives? 2. What are wage boards? What are its functions?
UNIT –V10. Employee Communication11. Worker’s Education and Training
Lesson 10 Employee CommunicationMore effective human relations is engendered through adequate communication. Theorigin of the word “communication” lies in the Latin word “communis” denoting“common”. Therefore communication is concerned with imparting a common idea orunderstanding and covers any type of behaviour resulting in an exchange of meaning.An executive’s working day is filled with communication of different types likeorders, reports, conversations and rumours. Communication is vital in the relationshipbetween executive and their subordinates. It is through effective communication thatan executive ultimately gets work done by others. Therefore to be effective, everyexecutive must know how to communicate. Whilst the tradionalists viewed thecommunication purpose as providing the means whereby a plan can be implementedand action coordinated towards the common goal or end result; the behaviouralistslooked upon it as a means whereby persons in the organisatoin can be motivated toexecute such plans enthusiastically and willingly. Whatever viewpoint is accepted,effective communications requires an appreciation of its meaning and objectives aswell as of the barriers which effective communication.Objectives of CommunicationManagement depends upon communications to achieve organizational objectives.Since managers work with and through other people, all their acts, policies, rules,orders and procedures must pass through some kind of communication channel. Alsothere must be channel of communication for feedback. Accordingly, some of thepurposes of communication are: • To discourage the spread of misinformation, ambiguity and rumors; which can cause conflict and tension. • To foster any attitude which is necessary for motivation, cooperation and job satisfaction. • To develop information and understanding among all workers and this is necessary for group effort. • To prepare workers for a change in methods of environments by giving them necessary information in advance. • To encourage subordinates to supply ideas and suggestions for improving upon the product or work environment and taking these suggestions seriously. • To improve labour-management relations by keeping the communications channels open and accessible.
• To encourage social relations among workers by encouraging inter- communication. This would satisfy the basic human need for a sense of belonging and friendship.Importance of CommunicationInter-personal roles require managers to interact with supervisors, sub-ordinates, peersand other outside the organisation. Thus, or co-ordinate action, communication isnecessary. Communication transforms a group of unrelated individuals into a termthat knows what its goals are and how it will try to reach them.Communication allows people to co-ordinate by providing them with a way to shareinformation. The first type of information that needs to be shared is what the goals ofthe organisatoins are. People need to know where they are heading and why. Theyalso need directions for their specific tasks.Communication is especially important for the task of decision-making. Decision-makes must share their views on what the problem is and what the alternatives are.Once a decision has been made, communication is necessary to implement thedecision and to evaluate its results.Communication also allows people to express their emotions. Communications offeelings can be very important to employee morale and productivity. Employees whofeel that they cannot vent their anger or express their joy on the job may feelfrustrated and repressed.On any given day, a manager may communicate for all the purposes described above.Communication goes up, down and across the levels of the organization’s hierarchy.Communication ProcessThe following figure presents a general way to view the communication process – as aloop between the source and the receiver. In the simplest kind of communication, boththe sender and the receiver perform the encoding and decoding functionsautomatically.
Sending Transmission Decoding Encoding (through channels) Sources Noise Receiver Sender Decoding Transmission EncodingSource/senderThe communication cycle begins when one (called the sender) wants to transportmeaning-a fact, idea, opinion or other information-to someone else. A manager, forinstance, might call the research departments to send to the latest information on aparticular market.EncodingThe second step is to encode the message into a form appropriate to the situation. Theencoding might take the form of words, facial expressions, gestures, and physicalactions and symbols like numbers, pictures, graphs etc. Indeed, most communicationinvolves a combination of these. The encoding process is influenced by the content ofthe message, the familiarity of the sender and receiver and other situational factors.TransmissionAfter the message has been encoded, it is transmitted through the appropriate channelor medium. Common channels or media in organizations include face-to-facecommunication (using the media of sound waves, light etc.), letters, and reports etc.(The channel by which an encoded message is being transmitted to you at thismoment is the printer page).DecodingThe person to whom the message in sent the receiver) interprets the meaning of themessage through the process of decoding. This process may be simple and automatic,but it can also quite complex. Even when you are just reading a letter, you may needto use all your knowledge of the language, your experience with the letter-writer andso on. If the intended message and the received message differ a great deal,communication has broken down (communication gap) and misunderstanding islikely to follow.
ReceiverThe receiver can be an individual, a group, or an individual acting on behalf of agroup. The sender has generally little control over how the receiver will deal with themessage. The receiver may ignore it, decide not to try to decode or understand it orrespond immediately. The communication cycle continues when the receiver respondsby the same steps back to the original sender, which is called ‘feedback’.NoiseIn the communication process, noise takes on a meaning slightly different from itsusual one. Noise refers to any type of disturbance that reduces the clearness of themessage being transmitted. Thus, it might be something that keeps the receiver frompaying close attention such as someone coughing. Other people talking closely, a cardriving by etc., it can be a disruption such as disturbance in a telephone line, weakhunger or minor ailments which may affect the message.Methods of CommunicationThere are mainly three primary methods of communicating in organizations, i.e.written, oral, and non-verbal. Often the methods are combined. Considerations thateffect the choice of method include the audience (whether it is physically present), thenature of the message (its urgency or secrecy), and the cost of transmission. Thefigure given below shows various forms each method can take Written Letters Memos Reports Methods of communication in organizations Oral Manuals Forms Information Conversations Task-related exchange Group Discussions Non-Verbal Formal Speeches Human Elements: Facial expressions Body language Environmental Elements: Office design Building architecture
Typically organisations produce a great deal of written communication of many kinds.A letter is a formal means of communicating with an individual, generally someoneoutside the organisatoin. Probably the most common form of written communicationin organisatoins is the office memorandum, or memo. Memos usually are addressed toa person or group inside the organisatoin. They tend to deal with a single topic and aremore impersonal, but less formal than letters. Other common forms of writtencommunication include reports, manuals and forms. Reports generally summarize theprogress or results of a project and often provide information to be used in decision-making. Manuals have various functions in organizations. Instructions manuals tellemployees how to operate machines; policy and procedures manuals inform them towork-related problems. Forms are standardized documents on which to reportinformation. As such, they represent attempts to make communication more efficientand information more accessible. A performance appraisal form is an example.Oral CommunicationOral communication, also known as face-to-face communication is the most prevalentform of organizational. It may be in the form of direct talk and conversation betweenthe speakers and listeners when they are physically present at one place or throughtelephone or intercom system conversation. Where one-way communication isrequired, then oral communication may include public address system. Informalrumour mill or grapevine are also popular form of oral communication. It is mosteffective for leaders to address the followers via public address system or audio-visual media. Oral communication is particularly powerful because the receiver notonly hears the content of the message, but also observes the physical gesturesassociated with it as well as changes in tone, pitch, speed and volume of the spokenword. The human voice can impart the message much more forcefully and effectivelythan the written words is an effective way of changing attitudes, beliefs and feelings,since faith, trust and sincerity can be better judged in a face-to-face conversationrather than in written words.AdvantagesSome of the advantages of oral communication are: • It is direct, time saving and least expensive form of communication.
• It allows for feedback and spontaneous thinking, so that if the receiver is unsure of the message, rapid feedback allows for early detection by the sender so that corrections can be immediately made, if necessary. • Because the message is conveyed instantaneously, it helps in avoiding delays; red tape and other formalities. • It conveys a personal warmth and friendliness and it develops a sense of belonging because of these personalized contracts.Disadvantages • There is not formal record of communication so that any misunderstood message cannot be referred back to what was actually said. • If the verbal message is passed on long the hierarchical chain of command, then some distortions can occur during the process. The more people the message must pass through, the greater the potential distortion. • Lengthy and distant communication cannot be effectively conveyed verbally. • The receiver may receive the message in his own perception and thus misunderstand the intent of the message. • Spontaneous responses may not be carefully though about. • The spirit of authority cannot be transmitted effectively in verbal transactions. • More or less or a different meaning might be conveyed by manner of speaking, tone of voice and facial expressions.Written CommunicationA written communication is put in writing and is generally in the form of instructions,letters, memos, formal reports, rules and regulations, policy manuals, informationbulletins and so on. These areas have to be covered in writing for efficient functioningof the organisation. It is most effective when it is required to communicateinformation that requires actions in the future and also in situations wherecommunication is that of general informational nature. It also ensures that every onehas the same information.Advantages • It serves as evidence of events and proceedings. • It provides a permanency of record for future references. The message can be stored for an indefinite period of time.
• It reduces the likelihood of misunderstanding and misinterpretation. The written communications are more likely to be well considered, logical and clear. And the message can be checked for accuracy before it is transmitted. • It can save time when many persons must be contacted at the same time. • It is more reliable for transmitting lengthy statistical data. • It appears formal and authoritative for action.Disadvantages • It can be very time-consuming, specially for lengthy reports. • There is no immediate feedback opportunity to be sure that the receiver has understood the message. • Confidential written material may leak out before time, causing disruption in its effectiveness. • It leads to excessive formality in personal relations.Non-verbal communicationSome of the meaningful communication is conveyed through non-verbal ways. Evensome of the verbal messages are strengthened or diluted by non-verbal expressions.These non-verbal expressions include facial expressions and physical movement. Inaddition, some of the environmental elements such as building and office space canconvey a message about the authority of the person. According to Tipkins andMcCarter, facial expressions can be categorised as: • Interest-excitement • Enjoyment-joy • Surprise-startle • Distress-anguish • Fear-terror • Shame-humiliation • Contempt-disgust; and • Anger-ragePhysical movements or body language is known as “kinesics”. A handshake isprobably the most common form of body language and tells a lot about a person’s
disposition. Other examples of body language are tilting of head, folding of arms orsitting position in a chair.Our facial expressions can show anger, frustration, arrogance, shyness, fear and othercharacteristics that can never be adequately communicated through written word orthrough oral communication itself. Some of the other body language symptoms areshrugging our shoulders for indifference, wink an eye for mischief or intimacy, tapour fingers on the table for impatience and we slap our forehead for forgetfulness. Asfor us environmental elements are concerned, a large office with plush carpeting andexpensive furniture conveys a message of status, power and prestige such as that of achief operating officer. On the other hand, a small metal desk on a cornercommunicates the status of a low ranking officer in the organizational setting.Accordingly non-verbal actions have considerable impact on the quality ofcommunication.Communication networksA communication network is the pattern of information exchange used by themembers of a group. Subordinate Senior Manager Subordinate Manager Subordinate Manager Assistant Subordinate Manager WHEEL Management Trainee CHAIN CIRCLE Task Force Task Force Member Member Task Force Task Force Member Member ALL-CHANNEL Communication networks Informal Group Informal Group Member Member Informal Group Informal Group Member Member
When the members of a group communicate mostly with the group leader, a wheelnetwork develops. When the members of a group are on different levels of theorganization’s hierarchy, a chain network is likely. Members or a task-force orcommittee often develop a circle network of communication with each personcommunicating directly to the other members of the task-force. Informal groups that
lack a formal leader often form an all-channel network – that everyone communicateswith everyone else.The density of the communication refers to the total quantity of communicationamong members. The distance between members describes how far a message musttravel to reach the receiver. The ease with which members can communicate withothers I measured by members’ relative freedom to use different paths tocommunicate. Members’ commitment to the group’s work is defined by the centralityof the position of the members. All these provide insight into possible communicationproblems. For instance, a group with high density and distance can expect a lot ofnoise distortion in its communications, as messages travel a long distance to theirreceives.The following factors influence the formation of communication patterns within smallgroups: 1. Type of task: If the task of the group is simple – a chain or wheel network will probably arise. For hand task, all channel network will arise. 2. The environment: The environment including the group’s seating arrangement and meeting place also affects communication patterns. For instance, if members always sit around a table, then circle network will arise. 3. Group performance factors: The group performance factors like group’s size, composition, norms and cohesiveness also affect the formation of communication networks. For instance, it is much easier to have an all- channel network in a group of eight than in a group of eighty.Managers must make use of all these characteristics and tendencies to help groupscommunicate and work most efficiently. A manager who sees that a wheel network isforming around and experienced, trusted employee may not interfere with the process.If an assertive but irresponsible employee becomes the hub of such a wheel, themanger may need to take action. If the manager relies on a group to help makedecision, the manager may encourage silent group members to seek in order to get thedesired decisions.Forms of Organizational CommunicationAlthough interpersonal and group forms of communication pertains even at thebroadest organizational levels, they do not sufficiently describe the paths of allmessage transmitted in organizations. Individuals can send and receive messagesacross whole organizational levels and departments by means of verticalcommunication or the information communication network. Non-verbalcommunication is also important and can be part of interpersonal, group andorganizational communication.Vertical communication
Vertical communication is communication that follows both up and down theorganizational hierarchy. The communication typically takes place between managesand their superiors and sub-ordinates.Upward communicationUpward Communication consists of messages moving up the hierarchy from sub-ordinates to superiors. The content of upward communication usually includesrequests, suggestions or complaints and information the sub-ordinate thinks is ofimportance to the superior.Downward communicationDownward Communication consists of messages moving down the hierarchy fromsuperiors to sub-ordinates. The content of downward communication often includesdirectives, assignments, performance feedback and information that the superiorthinks is of value to the sub-ordinate.For example, at TELCO, with a view to facilitate expeditious and simultaneouscommunicate to the workers on their jobs, the Worker is provided with a publicaddress system. Dissemination of information is regard to such maters as proceduralchange and company’s policies on transfers, promotion etc. is done through circularsand notice put up on the notice boards. In addition, magazines such as Telco News,Telco Flashes and Telco Ek Samuday provide details with regard to the company’sactivities in different spheres.Transactional communicationWenburg and Wilmont suggest that instead of communication being “upward” or“downward” which is inter-communication, it should be “transactional”communication which is mutual and reciprocal because, “ all persons are engaged insending encoding” and receiving (decoding) messages simultaneously. Each person isconstantly sharing in the encoding and decoding process and each person is affectingthe other”. In the transactional process, the communication is not simply the flow ofinformation, but it develops a personal linkage between the superior and thesubordinate.Informal CommunicationAnother term for informal communication network is the grapevine informalnetworks are found in all organizations. It is in the form of gossip in which personalspreads a message to as many others as possible who may either keep the informationto themselves or pass it on to others. The content of gossip is likely to the personalinformation or the information about the organisation itself.Managers should have some control over the informal network. For example, thegrapevine in an organisation may be carrying harmful information, false information
or politically motivated information. When these kinds of rumours are being spread,manages may need to intervene. They can gold open meetings and objectively discussthe issues that are being informally discussed already. They may also issues a clearlyworded memo or report stating the facts and thereby help minimize the damage thatthe informal network can do.Managers can also obtain valuable information from the grapevine and use it fordecision-making.Other Forms of CommunicationOne that has become especially popular of late is rather colloquially labeled“management by wandering around”. The basic idea is that some managers keep intouch with what’s going on by wandering around and talking with people-sub-ordinates, customers, dealers and any one else involved tithe company in any way.This will give managers new ideas and a better feel for the entire company.Barriers to CommunicationThe communication must be interpreted and understood in the same manner as it wasmeant to be sent by the sender, otherwise it will not achieve the desired result and acommunication break-down will occur. There are certain external road blocks toeffective communication. In addition, there are personal factors which affectcommunication.Some of the organizational barriers and some of the interpersonal barriers to effectivecommunication are discussed below:Noise BarriersNoise in any external factor which; interferes with the effectiveness ofcommunication. The term is derived from noise or static effects in telephoneconversation or radio wage transmission. It may cause interference in the process ofcommunication by distraction or by blocking a part of the message or by diluting thestrength of the communication. Some of the sources contributing towards noise factorare:Poor timingA message sent on poor timing acts as a barrier. For instance a last minutecommunication with a deadline may put too much pressure on the receivers and mayresult in resentment. A message must be sent at an appropriate time to avoid theseproblems. Hence the manager must know when to communicate.Inappropriate channelPoor choice of channel communication can also be contributory to themisunderstanding of the message. The manager must decide whether the
communication would be most effective if it is in writing or by a telephone call or aface-to-face conversation or a combination of these modes.Improper or inadequate informationThe information must be meaningful to the employee. It must be precise and to thepoint. Too little or too much information endangers effective communication.Ambiguity in use of words will lead to different interpretations.Physical distractionsAny physical distractions such as telephone interruptions or walk-in visitors caninterfere with the effective face-to-face communication process.Organizational structureCommunication may be blocked, chaotic or distorted if the channels are not clear or ifthere are bottlenecks or dead ends. Hence the organisation structure should be suchthat the chain of command and channels of communication are clearly established andthe responsibility and authority are clearly assigned and are traceable.Information overheadOverload occurs when individuals receive more information than they are capable ofprocessing. The result could be confusion or some important information may be laidaside for the purpose of convenience.Network breakdownNetwork breakdown may be intentional or due to information overload and timepressures under which a communication has to be acted upon. Some factorscontributing to such disruption are: • Important negative information may be withheld by the managers. • The secretary may forget to forward a memo. • There may be professional jealousy resulting in closed channels.Interpersonal BarriersThere are may interpersonal barriers that disrupt the effectiveness of thecommunication process and generally involve such characteristics of either the senderor the receiver that cause communication problems. Some of these are:Filtering
Filtering refers to intentionally withholding or deliberate manipulation of informationby the sender, either because the sender believes that the receiver does not need all theinformation or that the receiver is better off not knowing all aspects of a givensituation. It should also be that the receiver is simply told what he wants to hear.Semantic barriersThese barriers occur due to differences in individual interpretations of words andsymbols. The words and paragraphs must be interpreted with the same meaning aswas intended. The choice of a wrong word or a comma at a wrong place in a sentencecan sometimes alter the meanings of the intended message. For example, a night clubadvertisement sign, “clean and decent dancing every night except Sunday”, could leadto two interpretations. First, that there is no dancing on Sundays and second, that thereis dancing on Sundays, but it not clean and decent.PerceptionPerception relates to the process through which we receive and interpret informationfrom our environment and create a meaningful work out of it. Different people mayperceive the same situation differently. Hearing what we want to hear and ignoringinformation that conflicts with what we know can totally distort the intent or thecontent of the message. Some of the perceptual situations that may distort a manager’sassessment of people resulting in reduced effectiveness of the communication are: • A manager may perceive people to belong to one category or another as stereotypes, rather than unique and distinct individuals. For example, he may perceive women to be less efficient managers. • A manager may make total assessment of a person based on a single trait. A pleasant smile may make a positive first impression. • A manager may assume that his subordinate’s perception about things and situation are similar to his own.This perception limits the manager’s ability to effectively respond to and deal withindividual difference and differing views of work situations.Cultural barriersThe cultural differences can adversely affect the communication effectiveness,specially for multi-national companies and enterprise.Sender credibilityWhen the sender of the communication has high credibility in the eyes of the receiver,the message is taken much more seriously and accepted at face value. If the receiverhas confidence, trust and respect for the sender, then the decoding and theinterpretations of the message will lead to a meaning of sender. Conversely, if the
sender is not trusted, then the receiver will scrutinize the message heavily anddeliberately look for hidden meanings or tricks and may end up distorting the entiremessage. Similarly, if the source is believed to be an expert in a particular field thenthe listener may pay close attention to the message, and believe it specially if themessage is related to the field of expertise.EmotionsThe interpretation of the communication also depends upon the state of the receiver atthe time when message is received. The same message received when the receiver isangry, frustrated or depressed may be interpreted differently than when he is happy.Extreme emotions are most likely to hinder effective communication because nationaljudgments are replaced by emotional judgments.Multi-meaning wordsMany words in English language have different meanings when used in differentsituations. Accordingly, a manager must not assume that a particular work means thesame thing to all people who use it. Hence, the managers must make sure that they usethe word in the same manner as the receiver is expected to understand it, otherwise itwill create a barriers to proper understanding of the message.Feedback barriersThe final source of communication barriers is the feedback or lack of it. Feedback isthe only way to ascertain as to how the message was interpreted.Overcoming Communication BarriersIt is very important for the management to recognize and overcome barriers toeffective communication for operational optimization and this would involvediagnosing and annualizing, situations, designing proper messages, selectingappropriate channels for communicating these messages, assisting receivers ofmassages in correct decoding and interpretation and providing an efficient andeffective feedback system. Some of the steps that can be taken in this respect are asfollows: 1. Feedback: Feedback helps to reduce misunderstandings. The information is transferred more accurately when the receiver is given the opportunity to ask for clarifications and answer to any questions about the message. Two-way communication, even though more time-consuming, avoids the message. Two- way communication even though more time-consuming, avoids distrust and leads to trust and openness which builds a healthy relationship contributing to communications effectiveness.
2. Improve listening skills: Good listening habits lead to better understanding and good relationships with the each other. Some guidelines for effective listening are:• Listening requires full attention to the speaker. Do not let your mind wander or be preoccupied with something else, otherwise you would not be able to grasp the meaning of the message in its entirety.• The language used, tone of the voice and emotions should receive proper attention. Listen for feelings in the message content and respond positively to these feelings.• Ask questions to clarify any points that you do not understand clearly and reflect back to the speaker your understanding of what has been said.• Make sure that there are no outside interruptions and interference during the course of conversation.• Do not prejudice or value the importance of the message due to your previous dealings and experiences with the sender or your perceptions about him, positive or negative.• Don’t jump to conclusions before the message is over and is clearly understood.• Summarize and restate the message after it is over to make sure about the content and the intent of the message.3. Develop writing skills: Clearly written messages can help avoid semantic and perception barriers. A well written communication eliminates the possibility of misunderstanding and misinterpretation. When writing messages it is necessary to be precise thus making the meaning as clear as possible so that it accomplishes the desired purpose. Some helpful hints in written communication are suggested by Robert Degise as follows:• Keep words simple: This will reduce your thoughts to essentials and the message will be easier to understand by the receiver. The message will be lost if the words are complex and do not lend to a clear single meaning.• Do not be bogged down by rules of composition. While the rules of grammar and composition must be respected, they should not take priority over the ultimate purpose of the communication.
• Write concisely: Use a few words as possible. Do not be brief at the cost of completeness, but express your thoughts, opinions and ideas in the fewest number of words possible. • In specific: Vagueness destroys accuracy which leads to misunderstanding of the meaning or intent of the message. Accordingly, be specific and to the point. 4. Avoid credibility gaps: Communication is a continuing process and the goal of the communication is complete understanding of the message as well as the creation of trust among all members of the organisation. Accordingly, the management must be sincere and should earn the trust of the subordinates. Management should not only be sensitive to the needs and feelings of works but also its promises should be supported by actions. Accordingly to studies conducted by J. Lift, openness and an atmosphere of trust builds healthy relationship and closes credibility gaps, thus contributing to communications effectiveness.Guidelines for Effective CommunicationThese guidelines are designed to help management improve their skills incommunicating so as not only avoid any barriers to effective communication, but alsoto strengthen the basis for optimum results which depend upon the clearunderstanding of the desired communication.The ideas and messages should be clear, brief and preciseThe ideas to be communicated must be well planned and clearly identified. This willeliminate ambiguity so that the message will not be subject to more than oneinterpretation. The message must be clear, precise and to the point and free fromdistortions and noise. It should also be clear, precise and to the point and free fromdistortions and noise. It should also be brief so that it is just necessary and sufficientand should avoid loose ends or meaningless and unnecessary words.Sense of timingThe message should not only be timely so that the decisions and actions can be takenin tie and when necessary, but also the timing of the message and the environmentalsetting in which the message is delivered and received is equally important.IntegrityThe communication must pass through the proper channels to reach the intendedreceiver. The communication flow and its spread must avoid by passing levels or
people. When these concerned levels are omitted or bypassed, it creates bickering,distrust, confusion and conflict. Accordingly, the established channels must be used asrequired.Consult with others who are involved in planning the communicationIf people have participated in the planning process, they would be highly motivated togive active support to such communication and would carry it through. The peoplewho are concerned must know exactly what they need and when they need thecommunication.Consider the receiver’s interestTake the receivers interest into account, then the receiver will be more responsive tothe communication. The management must clarify any part of the communication thatmay be necessary and must encourage comments, questions, and feedback. Themanagement must always be helpful in carrying out the intended message of thecommunication.Mode of deliveryWhile delivering the communication, avoid negative statements like, “I am not sure itwill work”, but be confident and definitive. The success of the communication alsodepends upon the tone of the voice if the communication is verbal, expression andemotions exhibited, attentiveness to the receiver and so on. The writtencommunication should be polite and unambiguous.Use proper follow-upAll communications need a follow-up to ensure that these were properly understoodand carried out. The response and feedback to the communication should determinewhether the action to the communication has been prompt, appropriate and accurate.Communication should be comprehensiveCommunication should be complete so as not only to meet the demands of today but,should also be based on future needs of the organisation as well as individuals.Recently, the nature of managerial and organizational communication has changeddramatically, mainly because of break through the electronic technology and adventof computers. Now cellular phones, E-mail and Internet have made thecommunication quick and convenient. It is not even possible for managers fromdifferent cities to ‘meet’ by teleconferencing method without leaving their offices. Atthe same times, psychologists are beginning to discover some problems associateswith these new advances in communication.Role of Communication in Industrial Relations
The overall objective of the communication system is to create a sense of onenessamong the people and to secure the individual’s identification with the organisation. Itis vital in the relationship between executives and their subordinates. Through propercommunication the management is able to keep its employees well informed with itsultimate objectives and what it expects from each individual. If such information isshared freely, the management can will the confidence and the employees can beproperly prepared for accepting necessary changes by avoiding unnecessarymisgivings. Thus, communication seeks to unify, coordinate and combine the entireemployee for the achievement of organizational objectives. As put b Charles E.Redfield, ‘Communication is the mechanism through which human relations havedeveloped”. “It is claimed that it is impossible to have human relations withoutcommunication”. There can be no denying the fact that the adequacy andeffectiveness of communication system largely determines the success and progress ofan organisation.Review Questions 1. Define communication and bring out the importance of organizational communications. 2. What are the steps in communication process? 3. What are the different types of communication? 4. Identify the barriers to effective communication and discuss how they can be overcome? 5. Discuss how communication acts as a tool to bring about smooth industrial relations.
Lesson 11 Worker’s Education and TrainingThe workers in the country should be regarded as the most significant component ofthe citizen community and they should be psychologically satisfied by providingopportunities for education and training. It has been aptly said that “the major capitalstock of an industrially advanced country is not in its physical equipment, it is thebody of knowledge amassed from the tested findings and the capacity and the trainingof population to use this knowledge effectively”. It has now been increasinglyrealized that there is a growing need for the kind of education that will properly equipthe workers and trade unions to meet their increasingly heavy economic and socialresponsibilities.Concept of Worker’s EducationIt is very difficult to define precisely the term “workers’ education”, partly because ofthe “lack of definitiveness of aim or workers’ education”, and partly due to “lack ofunanimity amongst labour experts on these aims”. At a Seminar convened by theI.L.O. in Copenhangen in 1956 to consider the question of workers’ education, it wasgathered that the participants had very different conceptions of workers’ educations.To some, it meant “education of the workers as a trade unionist”, to others, it meant“basic education for workers who lacked opportunity in formal schooling”, to stillothers, it meant “education of the workers as a member of the community and as aproducer, consumer or citizen”.The term “workers’ education” has assumed different meanings in different countriesdue to historical reasons. “In the United States of America workers’ education isconsidered as synonymous with training in trade union leadership. In the U.K. itcovers trade unionism, general adult education and vocational education. In manycountries of Western Europe, workers’ education refers to education in citizenship. Inthe developing countries, including India, the term workers’ education is used in itswider connotation and aims at making the worker a better operative, a better unionmember and a better citizen.According to Harry Laidlar, “Workers’ education is an attempt on the part of theorganized labour to educate his own members under in educational system in whichthe workers prescribe the courses of instruction, select the teachers and inconsiderable measure furnish the finance”. The definition emphasizes upon: • The trade union o educate its own members;
• The educational system should be such in which the workers themselves prepare the syllabi and curricula and themselves select the teachers; and • The system of education should be financed by the fund of the union concerned.Florence Peterson observes, “The workers’ education, as commonly used, in not ageneric term but has a specific connotation. It is a special kind of adult educationdesigned to give workers a better understanding for their status, problem, rights andresponsibilities as workers, as union members, as consumers and as citizens”.According to another authority, “Workers’ education and trade union aresynonymous, since the chief aim of workers’, education is to equip the trade unions totake a more active interest in the movement.” But trade union education is narrower inscope in as much as it only confines itself in training workers to become goodmembers of trade union whereas the workers’ education besides providing theworkers the training in trade unions also aims at social and fundamental education asthat is given with view to making a worker a good citizen as well as a good memberof the trade union.According to the Encyclopedia of Social sciences, “Workers’ Education” seeks tohelp the worker solve his problems not as an individual but as a member of his socialclass. aS a whole, workers’ education has to take into consideration the educationalneeds of the worker as an individual for his personal evolution; as an operative – forhis efficiency and advancement; as a citizen – for a happy and integrated life in thecommunity; as a member of a trade union – for the protection of his interests as amember of the working class.”.“It is , therefore, to bridge the lacuna by illiteracy, to create better understanding ofwork and one’s own place in national economy, to prepare worker for effectivecollaboration with the management, to make him a better citizen, to create leadershipamong the ranks of labour, to replace outsiders in trade unions and ultimately to makethem conscious of their rights and responsibilities that worker’s education aims at”.Characteristic Features of Worker’s EducationOn the basis of the various definitions given of workers’ education, certaincharacteristic features may be noted as below: • The scope of workers’ education is much wider than that of trade union education.
• Worker’s education is designed to create trade union consciousness in the workers besides making them good citizens and training them to understand their status, rights and responsibilities. • In workers’ education, the workers themselves form the curriculum and select their own teaches. • The institutions providing workers’ education are controlled, financed and managed by the workers. • It is based upon the idea of gaining more the more strength for the bargaining power of trade and producing workers who should behave as workers, • It differs from vocational and professional education as its main aim is to train a worker for his group advancement and for the solution of group problems, whereas vocational and professional education aims at individual advancement. • The approach in workers’ education is psychological and philosophical. • It includes general education, vocational education, technical education, social education and training in trade unionism.Aims and Objects of Workers’ EducationAccording to the National Commission on Labour, workers’ educations should makea worker: • A responsibly committed and disciplined operative; • Understand the basic economic and technical aspect of the industry and the plant where he is employed so that he can take an intelligent interest in its affairs; • Aware of his rights and obligations; • Understand the organisatoin and functioning of the union as well as develop qualities of leadership, loyalty and devotion towards trade union work so that the can intelligently participate in the affairs of his union; • Lead a clean and healthy life based on a firm ethical foundations; and • A responsible and alert citizen.In the words of the Director-General of the I.L.O., “The primary aim of workers”education is to enable the worker to put his finger on problems confronting him in his
social group; he must acquire a certain culture so that in his capacity of an individualhe can locate his proper place within his own trade and milieu; he must understandboth his position in the enterprise as well as the role of the enterprise itself within thegeneral framework of national and economic development; he must know what manrepresents and how he should behave in society, family, neighborhoods, workplaceand nation. Training programmers will stem logically from the foregoing the workers’place in society, the study of his rights and duties, the need for trade unionism and itsrole, knowledge of the undertaking and of economic principles, labour legislation,human relations without losing sight of a few basic essentials such as how to write aletter or a report, to calculate a wage sheet, to contribute effectively in meetings, tec.All of which will help to equip him to express and put to practical use the ideas,experience and teaching received”.The workers’ Education Review Committee in India has laid down the followingobjectives: • To equip all sections of workers, including rural workers, for intelligent participation in social and economic development of the nations in accordance with its declared objectives; • To develop among workers a greater understanding of the problems of their social and economic environment, their responsibilities towards family members and their rights and obligations as citizens, as workers in industry and as members and officials of their trade unions: • To develop leadership from among the rank and file of workers themselves; • To develop strong, united and more responsible trade unions through more enlightened members and better trained officials; • To strengthen democratic process and traditions in the trade unions movement; and • To enable trade unions themselves to take over ultimately the function of workers’ educations.Contents of Worker’s EducationThe contents of workers’ education cannot be put in water-tight compartment as thecultural outlook, historical background, availability of resources in men, material andmoney and stage of economic development differs from country to country. But ingeneral the scope and contents of workers’ education should be determined accordingto the environment, employment and union development. It should include differenttypes of education ranging from general education to trade union education covering
vocational guidance, technological training, literacy and artistic studies and themanner of conducting conferences and seminars.The content of workers’ education should be built around core subjects such asIndustrial Economics (particularly organizational and financial aspects of industrialunits), Industrial and Social Psychology, Industrial Sociology, Labour Economies,Philosophy, co-operative and Community Organisation.The broad contents should cover: • Organisation, recruitment of members, farming of constitution, registration, collection of dues, maintenance of accounts, correspondence and other office work, submission of returns, propaganda, of research memoranda, fighting cases in labour courts, negotiations with employers and the States. • Relevant economic and social problems, such as grievance procedures, methods of collective bargaining, determination of wages, productivity problems, economics of employment and social security, planning for economic development, indices of wages, and consumer prices, labour statistics, provisions of social and labour legislation, labor welfare and international labour problems. • With emphasis on trade union leadership, workers’ education should also deal directly with areas like history the trade union movement, structure, constitution, administration and methods of organisation of trade unions; communication with members, delegation of authority, elections of representatives; aims and objective of trade unions and methods of achieving these; holding of meetings and writing of reports; trade union finance; general and political funds; adult, accounts control and safeguard of the funds; mutual insurance, welfare work of trade unions, community services; cultural, recreational, educational and cooperative activities; union management relations, implementation of laws and awards; strikes and demonstrations; Union-State relations; labour administration and policy; Inter-union relations; social and labour legislation and practices concerting their legal rights and obligations.Teaching TechniquesThe workers’ education courses may be conducted in the campus itself. The workersmay also be given practical training in the field. Extension work may also form a partof the programme of workers’ educations.The techniques employed in imparting workers’ education are: (i) the general lectures,delivered in simple, direct and unambiguous language; (ii) discussions on the topics/issues involved; (iii) arranging study groups; and (iv) correspondence courses.
Modern methods of teaching are adopted, and for this purpose a number ofeducational aids and devices are used – like films, films strips, radio and recording,flip card, pictorial charts, flash cards, posters, flannel graphs, maps and diagrams, wallnewspapers, etc.Demonstration, special lectures, tests seminars, debates, role-playing, arrangingsymposia, case studies and two-way communication methods are also encouraged.Educational visits and study tours of the trainees to union-offices, factories andmultipurpose projects are important aspects of workers’ education.The results of workers’ education programmes have not been very impressive andleaves a vast scope for its improvement. The success of the programme depends to agreat extent on responsive cooperation from the unions and management, besidesactive and enthusiastic participation by the worker-teachers, rank and file workers,and trade union leaders.Worker’s TrainingTill recently, India had been suffering from acute shortage of skilled and trainedworkers for a number of occupations and industries; and majority of the workerssuffered from low efficiency, which necessarily meant that the rate of skill formationahs been low. Besides, factors like social attitude towards industrial work,differentials between he income of skilled and unskilled workers, and the training andeducational facilities available in the country, the educational system has also beenresponsible for this state of affairs. Bringing about any change in these is an uphilltask. But for rapid industrial development, the provision of training facilities for theworkers is the great need of he hour. This training pre-supposes a sound basis ofuniversal literacy, proper planning an utilization of trained personnel and utilization oftrained personnel, and properly designed training institutes. Needless to say thattrained leads to higher efficiency and increased productivity, less waste, reducedsupervision, higher employee earning, reduced accidents, increased organizationalstability and flexibility, heightened morale and vertical job mobility.Training Schemes of D.G.E.T.The Directorate General of Employment and Training has evolved various trainingprogrammes for the young persons. Such programmes comprise: 1. Craftsmen’s Training Programmes 2. Craft Instructor Training
3. Advanced Vocational Training 4. Foremen’s Training 5. Apprenticeship Training Schemes 6. Part-time Training to Industrial Workers 7. Vocational Training Programme for WomenCraftmen’s trainingTo provide training to young men and women in the age-group 15-25, the D.G.E.T.has set up Industrial Training (it is) all over the country. To promote the efficiency ofcraftsmen trainees, aptitude tests have been introduced which are applied for theselection of craftsmen – Trainees in engineering trades and one year for non-engineering trades. National Trade Certificates are issued to the successful candidates.Craft instructors’ trainingThe central training institutes train craft instructors required by the ITIs and theapprentice training establishments. For example, training in chemical group of tradesis provided at Bombay institute, and in hotel catering at the Hyderabad Institute; theinstitutes at Kanpur, Bombay and Ludhiana provide training in printing, weaving andfarm machines trade.Advanced vocational training systemUnder this system, training of highly skilled workers and technicians are provided in avariety of advanced and sophisticated skills not available from other vocationaltraining programmes.Foremen’s trainingFor the training of foremen an institute was set up. Training is provided to the existingand potential shop foremen and supervisors in theoretical and managerial skills andworkers from industry in advances technical skills.Apprenticeships training schemeUnder the Apprentices Act, 1961, employees are required to engage apprentices. Forsuch apprentices, training is provided in basic trades and on the job.Part-time training for industrial workers
For industrial workers, part-time evening classes are organized to improve theirstandards of working. Industrial workers, possessing two years workshop experiencein a particular trade and sponsored by their employers are eligible for admission tothis course.Vocational training programme for womenThe National Vocational Training Institute for Women provides instructor training,basic training and advanced training in selected trades particularly suitable forwomen.But, substantial training capacities have remained unutilized. Further, the trainingprogrammes do not take into account local and regional needs. The quality of thetraining programme need to be increased a large extent.Review Question 1. What is workers’ education? What are its objectives? 2. Explain the contents and teaching techniques of workers’ education? 3. Briefly explain various schemes of workers’ training.
UNIT –VI12. Industrial Health and Social Security13. Employee Safety Programme14. Employee Counselling15. Conflict Management16. Quality Circles
Lesson 12 Industrial Health and Social SecurityThe greatest activity over the past few decades, in so far as employees benefits areconcerned, has occurred in the areas of health and social security. Industrial healthis comparatively an new system of public health and preventive medicinepracticed among industrial groups with the specific object of improving theirhealth and preventing the occurrence of disease as well as injury to them. In thetraditional sense, health implies “the mere absence of an ascertainable disease orinfirmity”, but in its present connotation, health is “the outcome of the interactionbetween the individual and his environment”. According to such a dynamicapproach, industrial health may comprise measures for (i) protecting theworkers/employees against any health hazards arising our of their work or thecondition under which it si carried on; (in) fostering the adaptation of workers tothe jobs and work environment and thus contributing towards the employees’physical as well as mental adjustments; and (iii) promoting the establishment andmaintenance of the highest possible degree of physical mental and social well-being of the workers. A large segment of the adult male population and quite anumber of adult females too, spend a considerable portion of their working timetoday in an industrial setting where they are employed. Industry exposes theemployee to certain hazards the may affect his health adversely. It is with theintention of reducing such hazards and improving the employee’s health that thediscipline of industrial health has come into being as a branch of public health.The introduction of industrial organisation may contribute effectively to a positivereduction in employee absenteeism and turnover as well as discontent andindiscipline among the employees and thus may improve their morale, workperformance and productivity.Obviously employees in the modern industrial setting are subject to various typesof health hazards and occupational diseases. According to one view, the normalhealth hazards may be caused by- • Chemical substances at the work place such as carbon monoxide, carbon dioxide, sulphur dioxide, sulphuric acid, acetic acid etc. When they are inhaled or absorbed by the skin which may result in acute or chronic sickness including respiratory or heart diseases, cancer and neurological disorders they may shorten life expectancy;
• Biological factors including sickness caused by bacteria, fungi, viruses, dietary deficiencies, allergies, emotional strains due to fear, anxiety etc. and • Environmental factors including illness due to radiation, noise, vibrations and shocks or atmospheric conditions such as inadequate ventilation, lighting arrangement or very high or low temperature at the work place.While exposure of workers to radiation may cause cataract, vibration and shocks maycause nerve injury and inflammation of tissues of he joints of the operative’s handsand improper lighting may impair the employee’s vision, it has been pointed out thatmany manufacturing processes are accompanied by such noise as is capable of notonly impairing the hearing of a workers but also of making it difficult for him to hearany warning of an impending danger.Besides such health hazards, various occupational diseases may also be caused as aresult of the physical conditions and the presence of poisonous and non-poisonousdust and toxic substances in the atmosphere during the process of manufacturing orextraction. Such diseases are usually slow to develop and generally cumulative intheir effects. Each diseases are usually slow to develop and generally cumulative intheir effects.In India, a list of such diseases are appended to sections 89 and 90 of the FactoriesAct, 1948 as well as the Workmen’s Compensation Act, 1923 which includes leadpoisoning, phosphorous poisoning, arsenic poisoning, chorome ulceration, anthraxsilicosis, primarily cancers of skin, dermatitis due to action of mineral oil, asbestosis,toxic anemia, begassoise etc.Social SecurityBroadly speaking, financial and social insecurity means inability or lack of capacityof a person or individual to protect himself from the risks of unemployment, sickness,industrial accidents or disability, old age and other contingencies. Thus linked withproblems of employees safety and industrial health of workers is the question ofprovision of security to them by the society or the government.In industrial undertakings, workers are often subject to periodic unemployment due tosickness, industrial accidents, old age, or on account of financial sickness or not so-efficient condition of business. These may incapacitate a worker temporarily orpermanently and lead to unemployment causing financial misery and otherconsequences. Ordinarily, workers do not have financial resources to cope up withthese problems or alternative means of livelihood. In these circumstances it isobligatory on the part of industrial establishment and the government to help theseworkers and provide them security or what we call social security.
Social security is a system of protection or support provided by the society orgovernment to workers and their families in time of sudden calamity, sickness,unemployment, injuries, industrial accidents, disablement, ole age or othercontingencies.Social security programmes include – • Medicare and insurance benefits • Medical help at the time of injury and accident and provision financial compensation and relief. • Pension in case of disablement • Unemployment insurance or allowance • Maternity benefits • Death payments and family pension • Retirement benefits or old age relief etc.Social Security Programmes in IndiaIn pre-independence period, a beginning was made in social security with the passingof the Workmen’s Compensation Act, 1923. After independence, the government ofIndia has enacted a number of laws and has introduced and implemented manyschemes to provide social security to industrial workers. Some important acts andschemes in this context are discussed below.Workmen’s compensation act, 1923Workmen’s Compensation Act, passed by the Government of India in 1923, becameeffective from July 1, 1924. The act provided for payment of compensation toworkmen and their dependents in case of injury, accident and some occupationaldiseases arising our of and in the course of employment and resulting in disablementand death. The act is applicable to railway men and persons working in factories,mines, plantations, mechanically propelled vehicles, construction works and certainother hazardous occupations. The rate of compensation ranges from Rs. 20,000 to Rs.90,000 in case of death and from Rs. 24,000 to Rs. 1,14,000 in case of permanentdisablement depending on wages of workmen. In case of partial disablements, the rateof compensation is 50 per cent of the wages of workmen and is to be paid for amaximum period of 5 years. The act, however, does not apply to workmen who arecovered by the Employees State Insurance Act, 1948.Maternity benefit act, 1961
The Government of Mumbai was the first one which passed Maternity Benefits Act in1929. Now, such laws are in force in almost every state of the country. The MaternityBenefit Act, 1961 passed by Central Government regulates employment of women incertain establishments for certain period before and after child birth and provides formaternity and other benefits. The Act covers female works in mines, factories, circusindustry, plantations, hotels, restaurants and shops and establishments employing tenor more persons. There is no wage limit for coverage under the Act. The act entitlesthe female workers to get about 3 months or 12 weeks maternity leave with fullwages. However this act is not applicable to those female workers who are covered byEmployees State Insurance Act, 1948.Employees state insurance act, 1948 (ESI scheme)The Employee State Insurance Act, 1948 is the most important comprehensivescheme for providing social security benefits. The scheme which was originallyframed to cover perennial i.e. non-seasonal factories using power and employing 20or more persons has been gradually extended to smaller factories, hotels, restaurants,cinemas, shops, etc. employing 20 or more persons. It covers employees drawingwages upto Rs. 1600 per month. The Act provides for medical care in kind and cash,benefits in the contingency of sickness, maternity employment injury and pension fordependents on the death of the worker because of employment injury.Full Medicare and hospitalization is also being progressively made to members offamily of he injured persons. The act aims at providing compulsory and contributoryhealth insurance coverage to workers, For the purpose, the government has set upsemployees’ State Insurance fund administered by an autonomous Employees’ StateInsurance Corporation. Finances for the fund come from the contribution fromemployers and employees and government grants. Employees have to contributecompulsorily a nominal sum, a small percentage of the wages towards this insurancecoverage. Presently employers are required to contribute 1.25 per cent of their totalwage bill towards the fund. There is a network of hospitals, annexes and dispensariesestablished at important industrial centers throughout the country to provide medicalcare and other facilities to workers. The scheme covers about 62 lakhs employees.Employment provided fund The Employment Provident Fund and Miscellaneous Provision Act, 1952 providesretirements benefits such as provident fund, family pension and deposit-linkedinsurance. This act covers establishments employing 20 or more persons and isrestricted to those drawing wages up to Rs. 3500 per month and is applicable to about175 industries or classes of establishments. The minimum rate of contribution underthe act presently is 8.33 per cent. However in respect of 98 industries or classes ofestablishment employing 50 or more persons, it has been enhanced to 10 per cent.Under the act, this contribution is deducted from the wages of employees anddeposited in the Fund set up for the purpose. The employers have to make a matching
contribution. The amount of provident fund held in employee’s name along withinterest is paid to him at the time or his retirement.Death reliefA Death Relief Fund was established under the Employee Provident Fund Scheme in1964 to provide financial assistance to nominees or heirs of deceased members ofunexempted establishments getting maximum salary of Rs. 1500 per month at thetime of death. The amount was restricted to the sum equal to the amount of PFbalance falling short of Rs. 2000.Employees deposit-linked insurance schemes, 1976 as amended in 1990Under this scheme, in case of death of an employee, the person entitled to received hisaccumulated provident fund gets an additional insurance amount equal to averagebalance in PF account of the deceased during the preceding twelve months providedthat such average balance was not less than Rs. 500 during the said period. Themaximum amount to be paid is restricted to Rs. 25,000 and the employees are notrequired to make any contribution to it.Family pension schemeThis scheme was introduced in 1971. It provides long-term financial security tofamilies of industrial workers in case of their premature death. It is made out of theEmployees Provident Fund to which the government makes additional contributionfor the purpose. Family pension ranges from Rs. 225 to Rs. 750 per month dependingon the period of membership. Presently family pensioners are also entitled toassurance benefits of Rs. 500 to meet immediate expenses.Retirement-cum-withdrawal benefitA member is entitled to withdrawal benefit on retirement or superannuation at therates ranging between Rs. 110 to Rs. 400 (for one years membership) and from Rs.9000 to Rs. 19825 (for 40 years membership) depending upon the pay range of themembers and length of his membership.Payment of gratuity act, 1972This Act is applicable to factories, mines, oil-fields, plantations, ports, railways,automobiles undertakings, companies, shops etc. The act covers employees receivenwages upto Rs. 2500 per month. The act provides for payment of gratuity at the rateof 15 days wages for each complete year of service subject to a maximum of Rs.50,000. In such case of seasonal establishments gratuity is payable at the rate of sevendays’ wages for each season.
Personnel departments can play an important role in ensuring safety, health, securityand welfare of the workers engaged in the organisation. The first thing they can do isto make employees aware of the safety measures, rules and regulation, and their rightsconcerning compensation payable to them in case of accidents and injuries and aboutthe provisions of various social security measure in force for their welfare. This canbe done by organizing training courses. They can help in reducing accidents and thus,lower the cost of worker’s compensation by persuading the management to provide asafe working environment.An important implication for the personnel department is that it should provideadequate the reasonable financial and security benefits and facilities. It should alsocomply with various legal rules and regulation honestly and faithfully.
Lesson 13 Employee Safety ProgrammeA safe hygienic work environment is the basic and common requirement of everyemployee irrespective of his position or status in the organisatoin. And it is the moralas well as legal responsibility of every employer to provide a workplace to itsemployees which is not hazardous to their physical or mental health. Humanengineering or ergonomics which the study of work and of work methods can help theorganizations in protecting their employees against the dangers of accidents andindustrial diseases. Very minor accidents may create major industrial disputes.Therefore, designing and operations of man, machine environment scientifically willensure mental and physical rest to the human beings. Scientific management,therefore, is a necessity for the organizations at it will strengthen industrial relationsand will enhance job satisfaction.Employees Safety and Industrial AccidentsNo industrial organisation can take the subject of employee safety in a casual mannerbecause frequent industrial accidents will result in decreased production and monetaryloss due to adoption of compensatory measures imposed by law. All industrialaccidents can hardly be ascribed to chance factor though such a possibility cannot beruled out completely in every accident. Sometimes it is situational factor and on otherthere are individual factors which are responsible for accidents. An industrial accidentmay be an event which takes place without foresight or expectation and results insome personal injury or damage to property. Factories Act, 1948 defines accident as“an occurrence in an industrial establishment causing bodily injury to a person whichmakes him unfit to resume his duties in the next 48 hours”. To be considered as anaccident it must take place in the course of employment in an industrial establishment.Causes of industrial accidentsNature and causes of accidents broadly vary form organisation to organisation.Basically industrial accidents will arise either due to technical faults or due to humanfollies or errors. Therefore, the causes of accidents may be attributed to work relatedcauses and worker related causes. • Work-related causes: Unsafe working conditions are the prime cause for any industrial accident and these include all engineering deficiencies. These mainly include improper lighting, inadequate safety devices, polluted work place, poor machine guarding, and unsafe and careless housekeeping. These factors will create psychological and physical problems for the worker and will invite industrial accident.
• Worker-related causes: These are human factors responsible for accidents due to their unsafe acts. Lack of adequate skill or knowledge in handling the machine, disturbed mental condition, neglecting safety device and instruction, using unsafe machine, working at unsafe speed are some of the causes due to which workers become victims of industrial accidents.Machinery for Preventing Industrial AccidentsEmployees’ pressure for higher production, efficiency and profits can result in unsafeworking conditions and work behaviour. Accidents always do not take place bychance. Obviously the first step for the accident prevention machinery will be toisolate such situational factors which may lead to accidents. In addition to it, theorganizations should have strong voluntary machinery for the prevention of accidentsand should follow strictly the guidelines issued by Government. The machinery forprevention of industrial accidents can be studied under two heads – voluntarymachinery and regulatory machinery.Voluntary machineryAs the name suggests, these measures include the ways implemented by themanagement voluntarily and not imposed by the law. Here management will have tobe cautious from the very selection of the employees. Today various psychologicaltests are available to test the ability and suitability of the individual for a particularjob.Organisatoins may develop their own safety programmes and enjoyed safety officers.Safety training should be provided to the workers on regular intervals. Further togenerate the interest of workers in safety programme, they should be involved inthem. There should be proper record of the accidents which took place in the past sothat management is able to concentrate on accident prone areas. Employees should bemotivated to develop safety behaviour and follow safety rules. If the voluntarymachinery for the prevention of industrial accidents is strong enough, themanagement perhaps may not require to follow statutory laws.Regulatory machineryInternational Labour Organisation (I.L.O.) is the body which is working foremployees’ safety, health and welfare since long. The latest effort in this directionwas the Occupational Safety and Health Convention, No. 155, adopted in 1981.Government of India also took initiative in enacting protective provision in its variouslegislations. Workmen’s Compensation Act 1923, Factories Act, 1948. Theemployees State Insurance Act, 1948 and Personal Injuries (Compensation Insurance)Act., 1963 are the main legislations passed by the Union Government which deal withoccupational safety provisions in the industrial organizations. Whereas the FactoriesAct prescribes measures for avoidance of industrial accidents, the rest of the three
prescribed the liability of employer to pay compensation to the workers for theinjuries caused by industrial accidents. The details of a few of these acts and schemesare given later in this Chapter Sec. 21 to 38 of Factories Act provide for safetyprovisions in the industrial organisatoin. The act provides for fencing of machinery,recruitment of trained and adult male workers, minimum distance to be maintainedform self acting machine, prohibition of women and children from working onmoving machines and specific provisions for protection of eyes against glare,dangerous fumes, explosive dust, gas tec. In addition to these, State Governments areempowered to supplement the provisions to further strengthen the safety of industrialworkers.The Mines Act 1952 contains rules and regulations for providing safety, health andwelfare or works employed in mines. These rules are enforced by the DirectorateGeneral of Mines Safety whose main functions included inspection of mines,investigation of all fatal accidents and certain serous accidents depending upon theirgravity, grant of statutory permission, exemptions and relaxation in respect of variousmining operations, approval to mines safety equipment, appliances and material etc.As industrial safety is both an end and a means, therefore, adequate measures shouldbe taken by the employees to provide safe and secure work-place to the workers.Companies of Safety ServiceAmong the many components of a safety service the following have proved effectivewhen applied in combination:Appointment of safety officerIn big organizations, the appointment of a safety officer to head the safetydepartments is a ‘must’. In small organizations, the personnel manager may look afterthe functions of this department. The head of the safety department, who is usually astaff man, is granted power to inspect the plant for unsafe condition, to promote soundsafety practices (through posters and safety campaigns), to make safety rules, and toreport violations to the plant manager. His functions also include analyzing the causesof accidents, maintaining accident statistics and records, purchasing safetyequipments, and so on. In some organizations, the relationship between the head ofthe safety departments and the line manager may be functional, that is, the head hasthe authority to issue and enforce orders in his functional field of safety.Support by line management
The head of the safety department, whether enjoying a staff or a functional position,by himself, cannot make a plant safe. His appointment lulls line management intoassuming that all its safety problems have been solved. This highlights the importanceof making safety a line responsibility. It is said that safety is essentially a lineproblem. Like all other line management problems it also involves questions ofmotivation, enforcement of standards and working through groups. One sure way towin line people’s support is to encourage them to participate on safety committees, onhousekeeping inspections and investigations of accidents.Elimination of hazardsAlthough complete elimination of all hazards is virtually an impossibility butfollowing steps ca be taken to help reduce them: • Job safety analysis: All job procedures and practices should be analyzed by an expert to discover hazards. He should then suggest changers in their motion patterns, sequence and the like. For example, he may discover that a particular reach over a machine could easily result in a loss of balance and injury or he may discover that a corner of a fixture is sharp enough to cut the hands of the worker. On the basis of job safety analysis the expert should also determine any special qualifications needed by an individual to perform the job. These qualifications may be later incorporate in the job specifications. • Placement: a poorly placed employee is more apt to incur injury that a properly place employee. Employees should be placed on jobs only after carefully estimating and considering the job requirements with those which the individual apparently possesses. • Personal protective equipment: Endless variety of personal safety equipment is available nowadays which can be sued to prevent injury. • Safeguarding Machinery: Guards must be securely fixed to all power driven machinery. • Material handling: Though often ignored, the careless handling of heavy and inflammable materials is an important source of several injuries and fire. • Hand tools: Minor injuries often result from improperly using a good tool or using a poorly designed tool. Therefore, close supervision and instruction should be given to the employees on the proper tool to use and the proper use of the tool. • Maintenance: Worn-out machinery, machinery guards and attachments, old and out-of-date fire fighting equipment also contribute to serious hazards. They often give employee a false sense of security and protection.
• Layout and design: A good plant layout and design can go long way in preventing accidents, construction of fireproof walls, adequate fire escapes, aisles, and storage space, doorways and passageways, location of hazardous items above employee reach, provision for non-skid floor, protection of radiators by grills can do much to reduce accidents. • Housekeeping: Good housekeeping does not include only tidy and clean floors and machines; other items such as dirty windows, dusty lights and dirty reflectors which reduce the effectiveness of lighting can also result in employee injury. • Falls: Another major source of industrial injury is tripping over subjects, slipping on floors and falling on to another level. Many dangers lurk in stacking and storing. Piles may not be properly constructed and may subsequently collapse. Periodic inspection can help prevent many accidents stemming directly from these causes.Safety training, education and publicitySafety training is concerned with developing safety skills, whereas safety education isconcerned with increasing the employees’ knowledge about accident prevention.Publicity in the form of contest programmes, safety companies, suggestion awards,and various audio-visual aids can be considered as a form of employee education.Safety training programmes should be derived from an analysis of training needs.This should refer to the hazards generally prevent in the company as well as thespecific hazards associated with individuals jobs. Training to deal with the generalhazards can be given at the time of induction. Specific hazards can be covered at thetime of job training.Safety inspectionsAn inspection by a trained individual or a committee to detect evidence of possiblesafety hazards (such as poor lighting, slippery floors, unguarded machines, faultyelectrical installations, poor work methods and disregard of safety rules) is a veryeffective device to promote safety. Safety inspections can take any one of thefollowing four forms: • Periodical safety audit: Here checklists are prepared of the points to be covered and an inspection programme is planned to deal with them at regular intervals. We give below a sample form that can be used for this purpose.
Audit area or Inspected Date………………..Department………… by…………………..Check Symptoms Causes Action Responsibility Date forPoints Recommended for Action Completion The safety audit form • Random spot check: Spot checks can be made in each area or department on a random sample basis or to cover special problems, such as the inadequate use of protective clothing. Here the inspector may simply enumerate the unsafe acts or conditions observed by him. An example of the form that can be used for this purpose is given below: Inspection carried out by Date………………….Unsafe Act or Condition Number of Observation Dept. A Dept. B Dept. C Random inspection form • Daily checks: Supervisors can be required to make daily checks of safety points in the departments under their control which should list the problem conditions and indicate the action to be taken either by the supervisor himself, management, or the safety advisor. An example for the form to be used for this purpose is given below:Deptt…………………… Supervisor……………… Date…………………. Item Condition Immediate action Future action taken proposed Daily check form • Regular inspection: This may be carried out when required by legislation or by insurance companies, of boilers, pressure vessels, pipelines, dangerous processes, lifts, hoists etc.
Investigation of accidentsBy determining the reasons for an accident, appropriate action can be taken to preventsimilar future occurrences. Investigation of an accident usually involves the followingsteps: • Define the problem or nature of accident • Collect all relevant facts • Determine the cause of the accident • Develop several alternatives to prevent recurrence • Select and implement the most effective alternative • Suggest disciplinary action against the employee whose actions were formed deliberately unsafe or negligent.An example of a simple investigation report is shown below:Department…………………..Name of injured………………………. Date & Time of injury………………………….. Date & Time of return to work……………………Where and how die the accident occur?Names of injury----------------------------------------------------------------------------------Names of witnesses-----------------------------------------------------------------------------Classification of accident:Type of accident Location of accident Severity of injuryMeasures taken and proposed to avoid repetition Signature……………………… Date………………..Measurement of safety
Various rates and ratios can be computed to indicate to employees and managementthe progress the safety departments is making in its job. These rates can be computedperiodically, say, on a quarterly basis, both for the company as a whole and for eachline departments. Too important measures of safety widely recognized and used inbusiness are as follows: • Frequency Rates: This is expressed as the number of lost-time accidents per million man-hours worked. The formula to calculate this rate is:A lost-time accident is one which makes an employee unable to work on one or moredays following the accident. • Security Rate: This expressed as the number of days lost due to accidents per million man-hours worked. The formula for this is:New Techniques in Account PreventionThree new techniques of accident prevention which have recently been developed inindustrially advanced courtiers of the West are: • Damage control, • Human engineering or ergonomics and • Systems safetyDamage controlHeinrich in his book, Industrial Accidents Prevention, postulates that before a givenset of circumstances can lead to a lost-time accident, here would be 29 accidentsinvolving minor injuries and 300 near-accidents involving no injury caused by thesame set of circumstances. However, this theory does not go so far as to accuratelypredict when the lost-time injury would occur.Lukens Steel of the United States have conducted systematic research to evolve amethod that would predict accurately when the lost-time injury would occur. Theirstudy concludes hat every accident is preceded by a series of minor injuries andincidents which can be said to occur in the following six steps:
• At stage one, the situation has an accident potential only. There ay be something unsafe in the working environment or wrong attitude to safety in a certain department. Unsafe acts may occur due to inefficient supervison. • At stage two, the accident potential is realized and dangerous incidents do in fact occur. But as it is near-miss, there is no injury and no damage to plant or equipment. • At stage three, the near-miss becomes a hit a plant and equipment are damaged, But people are not involved. Therefore, no injury is recorded. • At stage four, people are involved. The accident causes minor injuries to people as well as possible damage to plant and equipment. • At stage five, the injuries caused by an accident are serious enough to keep the worker away for more than three days. • At stage six, the injuries received prove fatal.Likens Steels experts have, therefore, established that adequate number of sign andindications would be available to those who can keep their eyes open and mindwatchful and a documentation of these indicators would help exercise a better controlover the situations and factors leading to damage. This is damage control. One shouldnote that it is not the same as conventional accident control. It concentrates attentionon injury potential at the pre-injury stage.Human engineering or ergonomicsErgonomics is the science that deals with many-sided problems of how to fit a job toman’s anatomical, physiological and psychological characteristic to enhance humanefficiency and well-being. Thus ergonomics is the application of knowledge of humancapabilities and limitations to the design of plant and equipment. An equipmentdesigned on the principles of human engineering is far less likely to be a source ofaccident than one designed without such considerations.Systems safetyA system is an orderly arrangement of components which are interrelated and whichact and interact to perform some task or function in a particular environment. All thecomponents of a system are complementary to each other. Accidents occur when anyone part of the system fails or malfunctions. Certainly if the entire industrial systemwere under complete control, no accident would result. The systems approach givesrise to use of advanced quantitative techniques and computers.Review Question
1. Bring out the importance of industrial health and safety.2. What are the major sources of health hazards and other types of insecurity of industrial employees?3. What types of health and safety programmes are generally provided to employees in modern industrial organisation.
Lesson 14 Employee CounsellingEmotions are part of the nature of human beings and emotional upsets are part of theirlife. It is sometimes more disastrous to suppress emotions. The emotional problemsaffect the interest of the employees himself and the organisatoin in which he isworking for. The problems may reduce their productivity, morale and increaseabsenteeism. Hence the managers should take steps to maintain a reasonableemotional balance of their employees and channelize their emotions on theconstructive lines. The instrument with which the managers can achieve such balanceis called counselling.Counselling is a method of understanding and helping people who have technical,personal and emotional or adjustment problems that usually has emotional contentsthat an employee with the objective of reducing it so that performance is maintainedat adequate level or even improved upon.Objective of CounsellingThe general objective of the manager in counselling sub-ordinates is to help theindividual remain effective in his job and performance of his duties in theorganisatoin. The man purpose of counselling in industry is to help employees inovercoming their neurotic or emotionally based illness that accounts for a substantialpart of employee absenteeism and turnover.Forms of CounsellingCounselling may be formal or informal. Formal counselling implies the directintention of the management to structure a counselling relationship between theemployee and his supervisor or sometimes a counselling specialist with adequateprofessional training. Such counselling on a systematic and planned basis may takeplace at three levels. • Supervisor’s counselling with his subordinates periodically, • Professional counselling within the organisation by staff members of personnel department, and • Counselling by psychiatrists from inside or outside the organisation.Informal counselling is done in the natural course of human relations amongindividuals who have mutual confidence and respect for each other judgments. Ittakes place in the normal work situation without any predetermined schedule and is
considered as a part of he routine duty of a manager. Quit often, the subordinates doesnot know or realize that counselling is taking place.Techniques of CounsellingOn the basis of techniques counselling could be • Directive Counselling • Non-directive Counselling • Cooperative CounsellingDirective Counselling centre around the counselor. The counselor, after hearing theproblems of an employee, decides what should be done and give advice andsuggestion to him to resolve the problem. But directive counselling seldom succeeds,as people do not wish to take up advice normally, no matter how good it might be.Nondirective Counselling is the process of skillfully listening the emotional problemsof an employee, understand him and determine the course of action to be adopted toresolve his problem. It focuses on the counselee hence it is called ‘client centred’ounselling. Professional counselors usually adopt this method of ounselling. Theunique advantage of this type of counselling is its ability to cause the employeesreorientation. The main stress is to ‘change’ the person instead of dealing with hisimmediate problem only. The non-directive counselor deals with respect the person soaffected. He takes the person as best to solve his own problems and he facilitates theperson to reach his goal.Cooperative Counselling is the process in which both the councellor and clientmutually cooperate to solve the problems of the client. It is not either wholly clientcentred nor wholly counselor centred but it is centred both councellor and clientequally. It is defined as mutual discussion of an employee’s emotional problem to setup conditions and plans of actions that will remedy it. This form of counsellingappears to be more suitable to managerial attitude and temperament in our country.Among the three from of counselling, the advice offered in directive counselingconsiders the surface crises; the nondirective counselling goes to the underliningcause, the real crisis that leads the employee to understand his problem. It is thussuggested that nondirective to counselling is, probably, the best among the threeforms.Counselling ProcessThe counselling process, normally consists of the following stages:Initiating
This involves developing mutual understanding openness and acceptance betweencounselor and counseled. This rapport building is essential to initiate the counselling.ExplorationThis involved understanding with the help of the counselling, the counsellee’s ownsituation, his feelings, his strengths and weakness, his problems and needs.The councellor allows the counselee to talk about anything even apparently unrelatedto the issue. It is important for the counselor to achieve a free flow of expression-oftenthrough rumblings – of the employee. The counselor will need an alert and receptivemind for this. The councellor, however, see to it that the councellor eventuallyconcentrates his thoughts on his problem rather than stray away from it. Thecounselor has to help the counselee in concentrating more on the problem and gettingdeeper into it and to discover the basic problems by himself.Formulation of action planThis involved exploring possible solutions and formulating action plan forimplementing them to make the counselee the normal person.Counselling and Industrial RelationsWhen employee are affected by job related and personal problems that very muchaffect the organizational welfare besides their own. Hence, if he problems are notidentified in the initial stages itself and solved, they may assume a serious proportionand ultimately affect the employee and organisation resulting in poor industrialrelations. Hence the organisatoins should take these problem seriously and solvethem. If the problems are relating to technical or job related, the line manager knowswell from his experience how and what changes he may suggest that may helprestoration of employee’s effective performance. Concerning career problems thesupervisors may refer such cases to the personnel specialists within the organisation.Again, it is the line supervisors who must create confidence on the minds of theirsubordinates that they can solve even the personal problems of their employees. Thesupervisors should also be aware of that personal and job related problems are largelyinseparable and the employee brings his total personality to his work and hence theorganizations should also help their employees to solve their personal problems to theextent possible through counselling.Having understood the importance of counselling as a tool of solving the variousproblems of the employees and help them the maintain/ improve concentration in theirwork performance, now many organizations start adopting conselling practices andprocedure to maintain better industrial relations.
Review Questions 1. What is counselling? Bring out its importance. 2. Explain the forms and techniques of employee counselling in industry. 3. Describe the process of counselling.
Lesson 15 Conflict ManagementConflict is a basic fact of life in groups and organizations. Organizations containpeople with divergent personalities, perceptions, goals, ideas, values and behaviours.Hence, conflict is an inevitable feature of organizations. Chung and Megginsondescribes conflict as the struggle between incompatible or opposing needs, wishes,ideas, interests or people. More specifically, “conflict is a process in which an effort ispurposefully made by one person or unit to block another that results in frustrating theattainment of the other’s goals or the furthering of his or her interests”.Conflict is a naturally occurring phenomenon; inevitable; inherent in any system; notalways bad and in fact an optimum level of conflict energizes the system. Fosterscreativity and innovation, and acts as a catharsis. At the same time if conflict isallowed to develop beyond control, it could tend to become destructive, resulting insuch aversive consequences such as strikes, sabotage and other dysfunctionalbehaviours.The effective manager must understand the nature of conflict that is beneficial to theorganisation and conflict that is not. He must deal with conflict in ways that promoteboth individual and organizational goals. The management of conflict is an essentialprerequisite to sound human relations.Features • Conflict occurs when two or more parties pursue mutually exclusive goals, values or events. • Conflict arises out of differing perceptions. • Conflict refers to deliberate behaviour. • Conflict can exist either at the latent or overt level • In conflict one side sees on opportunity to interfere with the others opportunity to acquire resources or perform activities. • Conflict is not an organizational abnormality but a normal aspect of social intercourse.Level of Conflict
Low level of conflict creates conditions of inertia and boredom in the system andexcessive conflict results in destruction and dysfunctional tendencies. Managers haveto monitor the level of conflict in the system and if there is too little or no conflict atall, the managers may even have to induce some level of conflict to energize thesystem. As the level of conflict tends to go beyond the optimum level the managermust act to resolve the conflict in a manner that will be beneficial to the organisation. LEVEL OF CONFLICT High Level Optimum Level Low LevelStages of Conflict Episode CONFLICT AFTER MATH LATENT CONFLICT PERCEIVED FELT CONFLICT MANIFEST CONFLICT CONFLICT CONFLICT RESOLUTIONThe above model presents conflict as a series of stages namely latent conflict;perceived conflict; felt conflict; manifest conflict and conflict aftermath.Latent ConflictEach episode of conflict starts with a ‘latent conflict’ but the actual conflict has notemerged. Factors such as competition for scarce resources, competition for positionsin the organisation exist which could become conflicts.Perceived conflictThis conflicts results in due to the parties misunderstanding of each other trueposition. One party perceives the other to be likely to thwart or frustrate his goals.
Felt conflictWhen the conflict makes one tense or anxious, the conflict is a felt conflict becausethe difference are personalized or internalized.Manifest conflictThis is the stage for open confrontation. It takes the form of conflictual behaviourincluding aggression, sabotage, apathy etc. all of which reduce organization’seffectiveness.Conflict resolutionWhen conflict is resolved in some form, it is called conflict resolution.Conflict aftermathThe aftermath of conflict may be either positive or negative for the organisationdepending on how the conflict is resolved. If the conflict is genuinely resolved, it canlead to more enduring relationship between parties; if the conflict is merelysuppressed but not resolved, the latent of conflict may be aggravated and explode inmore violent and serious forms. This is called ‘conflict aftermath’,Types of conflictsConflicts may take following forms: CONFLICT Individual Conflict Group Conflict Organizational Conflict Inter-individual Intra-individual Inter- Intra- conflict conflict organization organizatio al conflict nal conflict Inter-group Inter-group conflict conflictIndividual conflictInter-individual conflict
Inter-individual or inter-personal conflict involves two or more individuals who holdpolarized points of view. The most common reasons for inter-personal conflicts arepersonality differences, perceptions, clashes of values and interests, and competingfor scare resources.Intra-individual conflictIntra-individual conflict is internal to the person and probably the most difficult typeof conflict to analyze. Basically, intra-personal conflict can be related to two things;conflict arising due to divergent goals or conflict arising from out of multiple roles tobe played.Goal conflict occurs when a goal that an individual is attempting to achieve has bothpositive and negative features. Generally three separate types of goal conflicts areindentified. • Approach-approach conflict: A person wants tow positive situations but can have only one. • Approach-avoidance conflict: In this form of goal conflict the person attempts to achieve a goal that has both positive and negative aspects but wants to avail of positive and negative. • Avoidance-avoidance conflict: This type of conflict can be resolved because a person faced two negative goals and he may not choose either of them and may simply leave the situation.Role conflict is the result of divergent role expectations. It exits when the expectationsof a job are mutually different or opposite and the individual cannot meet oneexpectation without rejecting the other. An individual confronting with role conflictwill experience psychological stress leading to emotional problems, resulting in poorperformance.Group conflictInter-group conflictEvery group is in atleast partial conflict with every other group it interacts with. Thegroups differ in goals, work activities, power and prestige. The sources of intergroupconflict are incompatible goals, task interdependence, resource allocation, competitiveincentive and reward system, differences in values or perception etc.Intra-group conflictIntra-group conflict is essentially same as the bases of inter-individual conflict.Organizational conflict
Inter-organizational conflictThe bases to inter-organizational conflicts are essentially the same as the bases oninter-oup conflict. The types of inter-organizational conflict are between managementand government, management and management, union and government etc.Intra-organizational conflictIntra-organisational conflict are mainly three kinds: • Horizontal conflict: It refers to conflict between employees of departments a the same hierarchical level in an organization. • Vertical conflict: If refers to any conflict between different hierarchical levels in an organisation. It occurs usually in superior-subordinate relations. The reasons for vertical conflicts are inadequate communication, differences in interest, perception and attitudes between position holders occupying different levels. • Line and staff conflict: It refers to conflict between line managers and staff specialists.Conflict ManagementConflict has to be resolved as soon as the optimum level is crossed and beforedysfunctional consequences start occurring. Following are some of the techniquesemployed to resolve conflict.Dominance through positionQuiet often managers use positional authority to fire a lower ranking subordinate theyconsider to be a trouble-maker. Individuals, in organisation, with rare exception,recognize and accept the authority of their superiors as an acceptable way or resolvingconflicts. Although they may not be in agreement with these decisions, the abide bythem.Appeals proceduresThe people in disagreements may appeal to higher authority to help them to arrive at asolution by resolving the problem satisfactorily.Liaison groupsTo arbit differences between two warring factions, an arbitrator can be appoint whocan use this expertise and persuasion to achieve coordination and get people together.Reduce interdependence
On way to resolve conflict is to reduce interdependences. Departments may beprovided with resources that are independent of those provided for other departments.Conflict Resolution ModelThompson suggested five styles such as competiting, avoiding, accommodating,collaborating and compromising to resolve conflicts.If two parties experience conflicts, each one could be more concerned above theirown self or could be more concerned for the other.When the concern for ‘self’ is very low they could be very unassertive. If the concernfor he self is very high, they could be very assertive.If their concern for the other is low, they would tend to the non-cooperative. If theconcern for the other it high, they could be co-operative.In a conflicting situation: • If an individual’s concern for self and others is low, he will avoid the conflict; • If he has high concern for himself and low condern for others he will compete; • If he has high concern for himself and for others, he will collaborate; • If he has high concern for other but low concern for himself, he will accommodate; • If he has medium level of concern for both himself and the other, he will go for compromise. High Concern for others ACCOMMODATE COLLABORATE COMPROMISE AVOID COMPETE Low Low
All the five styles have its own advantage and disadvantages and a suitable styledepends upon both the nature of the individual and the situational factors.Review Questions 1. What do you understand by ‘conflicts’? What are the types of conflicts? 2. Explain ‘conflicts episode’. 3. How to manage conflicts in an organisatoin?
Lesson 16 Quality CirclesIn Japanese culture, the group plays a dominate role. The Japanese end to do things ingroups, to place to high value on group membership, and to strive to be as cohesive aspossible. It was natural for this group orientation to be expressed in Quality-Control(Q-C) circles in Japanese industry. When American companies began to look to theJapanese for ways to compete in work markets, the most visible and transferabletechnique seemed to be Q-C groups. Several thousand, U.S. companies now make useof them.A quality circle has been defined as a “self-governing group of workers with orwithout their supervisors who voluntarily meet regularly to identify, analyses andsolve problems of their work field”.A group participation proves, quality circle “typically are small groups of volunteersform the same work areas who meet regularly to identify, analyze, and solve qualityand related problems in their area of responsibility. Members of a group choose aparticular problem to study, gather data, and control charts to frame arecommendation that can be presented to management. Now groups are trained incommunication and problem solving skills and quality/ measurement strategies andtechniques.Objective of Quality Circles • To develop enhance and utilize human resources effectively. • To improve quality of products/ services, productivity and reduce cost of production per unit of output • To satisfy the workers psychological needs for self-urge participation, recognition etc. with a view to motivate them • To improve various supervisory skills like leadership, problem solving inter- personal and conflict resolution • To utilize individual imaginative, creative and innovative skills through participation, creating and developing work interest, include problem solving techniques etc.Techniques used for Discussion in Quality CirclesBrain-storming process
Under this technique complete free environment is created with a view to stimulatecreativity and the employees can come out with as many ideas as possible. Later theseideas will be screened and best ideas will be chosen.Cause and effectUnder this technique members are asked to find out the causes for the identifiedproblem. They identify the causes and their effects.Sampling and charting methodsUnder this technique, members of the quality circle observe the events and theirconsequences in the form of positive or negative results.They chart out all their observation either in sequence or in some other relationshipwhich gives clear ideal of the problem.These techniques will work effectively in attaining the objectives only when theorganizational structure of Q-C is sound and systematic.Quality Circle ProcessSize of the each Q-C select the problem from the operational problems suggested bymanagement or by the members of the Q-C. After selecting the problem the membersanalyze it by using the various problem solving techniques. Then the membersdevelop alternative solution, their effect and consequences on organisation andmembers, cost benefit analysis and merits and demerits of each solution. The nextstage is that members select the best solution from among the alternative solutions.Management reviews the solutions and may or may not accept the solution offered bythe Q-C members. If the solution is accepted it is implemented.Making Q-C Process EffectiveThe following factors should be recognized and practiced to make Q-C process ofeffective: • All members should accept that there is more than one way to solve a problem successfully. • All members to be encouraged to clarify and build on each others ideas. • Periodic summarizing of the activities by the leader or member to ensure common understanding. • Avoidance of heated arguments in favour of one particular position. • Avoidance of technique such as majority vote to obtain group agreement.
It has been stated in many forums that a major part of he responsibility for qualitycircles lies with the management than workers. Mr. Ishikawa, during a visit to India in1987 had remarked that Q-Cs can contribute only about 30 percent to qualityimprovement and the rest has to be in the form of management efforts. The famousAmerican expert Mr. Deming, after whom, most of the quality awards are given,unhesitatingly says that a major part of the effort towards quality improvement has tocome form management.The secret of the success of the Japanese effort has been the continuous modificationof their designs to overcome the quality problems faced by the customers and rectifythem. This calls for a lot of upstream management and proper tools of analysis to beapplied for successful efforts.It is only in a climate of cohesion, mutual trust and understanding that there can bemeaningful progress. For this, both managements and trade unions have to workjointly for the common organizational goal. It is not enough if only the managementtakes upon itself the task of achieving the desired results. It calls for the willinginvolvement of every section of employees, including those at the grassroots, leadingto company wise true participation and open management. Finally, development ofthe most important of all resources, human resource has to find a place.To achieve the prerequisites for excellence, many organizations are adopting variouskinds of management tools in the fond hope of finding a place for all their problems inorder to bring in greater involvement of employees in day-to-day affairs. Sweden andYugoslavia (and some companied in India, too) had experimented with “work placedemocracy” and “work autonomy” but not with much success.The task before India is to recreate the culture in which a sense of belonging to theorganisation is generated among all employees. If has were to happen, managementshave to change their age-old attitudes.Management, by itself, without actively involving task performers would not be ableto achieve the organizational goals. This would be possible only through a holisticapproach towards employees and humanization of work. Enrichment of the “qualityof working life” and catering to the self-esteem and recognition needs of employeesonly would help develop in them a sense of involvement, participation and pride inthe organizational progress.The one road to achieve this goal is the effective implementation of small groupactivities such as “Employees Participation Circle” (EPC); “Small Group Activities”(SGA) and “Training at Work Teams” (TAWT). In India in the West they are called“Quality Circles”. In Japan and many Southeast Asian countries, the small groups areknown as “Quality Control Circles” because they got evolved in the sixties as a resultof massive quality control training imparted to the employees.
The “Quality Circle” concept comes nearest o satisfying the pre-requisites fordeveloping the capability to face the current and emerging challenges. Its uniquefeatures such as voluntariness, bottom up group synergy are now proved to beingabout tangible and intangible benefits to any organisation, if practiced with sincerityof purpose as adapted to the Indian milieu. The number of organizationsimplementing quality circles in India has been steadily rising covering both the publicand private sectors and government agencies.This scheme will no doubt contribute to the organizational effectiveness and toenhance job satisfaction and sound human relations in all organizations.Review Questions 1. Define the term “Quality Circle”. What are its objectives? 2. Explain the purpose and process of Quality Circles.
CASEIndustrial Relations – The tisco experienceThe Tata Iron and Steel Co. Limited has a history of successful industrial relations.This is mainly due to the support established between management and labour.TISCO management believes that the human being is the core of the industry.Therefore his needs and fulfillment of his basic necessities were as important as anyother consideration in industry such as production and profit. The excellentassociation of employees with management started with the signing of an agreementby the management and the union way back in 1956. The agreement provided anincreasing measure of closer association of the workers with the management in theworking of the industry. They believed this would help- a) in promoting increases in productivity for the general benefit of the organisation, the employees and the country. b) in giving employees a better understanding of their role and importance in the working of the industry and in process production; and c) in satisfying the urge for self-expression.Joint councils and works committeesA series of Joint Councils and Joint Works Committees were subsequently set up. Theobjectives was to study and advise on the steps deemed necessary for increasingproduction, improving productivity, discipline, cost, economy, promotion, welfare,encouragement of suggestions, improvement of working conditions, as well as thefollow-up action on the implementation of the recommendations and decisionsapproved by the management from time to time.The three-tier setupAs already indicated, the close association of employees with management came moreinto existence with the agreement signed in 1956. The three-tier setup of jointcouncils consisted of the Joint Departmental Councils (JDCs) at the base. One was setup for each major department and combined ones for two or more smallerdepartments. The Joint Works Council (JWC for the whole organisation is at theintermediate level. The Joint Consultative Council of Management (JCCM)constituting the apex body.The Joint Councils at their respective levels study operational results and productionproblems, advise on the steps deemed necessary to promote and rationalizeproduction, improve productivity and discipline and economize costs. Promotions of
welfare and safety, encouragement of suggestions and improvement of workingconditions also fall within the purview of these Councils. These bodies have also tofollow up on the implementation of their recommendations and decisions approved bymanagement.In addition to these common functions, the Joint Works Councils has the special function ofreviewing every month the working of the departmental councils and a few other jointcommittees like the Suggestion Box Committee, General Safety Committee, CanteenManaging Committee and the Safety Appliances Committee.The Joint Consultative Council of Management is entrusted with the task of advisingmanagement on all matters concerning the working of he industry in respect ofproduction and welfare, particularly those referred to it by the Joint Workers Counciland follow up on the implementation of its recommendations. The Council has also toadvise management on economic and financial matters placed by management beforeit, but not those affecting the relations of company with its shareholders andmanagerial staff, or taxes.This does not mean that there are no problems in putting through the scheme. Forexample the coordination of the functioning of the various JDCs of which there were41 in 1986, is naturally a complex job. This is sought to be done through an annualmeeting of Chairmen, Vice-Chairmen and Secretaries of al the Councils under theChairmanship of the General Manager (op), who is also the Chairman of the JointWorks Council. It is also attended by the top officials of management and the Union.All procedural issues concerning the working of the councils are discussed and settledat this meeting, and a review made of the Scheme of Employees Association withManagement as a whole. This provides an opportunity to the various JDC officials tolearn from one another the weaknesses of a particular council and the strong points ofothers.AchievementsIt is difficult to measure the success of JDCs in terms of production tonnage orsavings in the cost of steel per tone. However, the fact remains that, during the pastseveral years, production in Tata Steel been toe the tune of 100% of the Plant/scapacity. During the year 1981-82, it reached the all-time high figure of more than105% of the Plant’s capacity. He various improvements suggested in process andprocedure elimination of defective work, import substitution, consumption ofmaterials etc. indicate the JDCs are deeply involved with the problem of productivity.By and large, the Councils have succeeded in making the employees think aboutdevelopment and improvements.
The most abiding effect, however, of these joint consultations has been thestrengthening of the team spirit and of the sense of belonging, which is responsible forthe unique industrial harmony and cordial relationship that prevails betweenemployees and management of Tata Steel since the past 53 years-a record indeed. Yetmanagement is not complacent as is evident from the following wordings of J.R.D.Tata:“In 1956, in consultation with the Union, we created the consultative machinerywhich has proved largely responsible for the mutual trust and cooperation we haveenjoyed since then. But we must not be satisfied with what we have done up to now.Our workers, today, particularly they younger ones, are better educated and trained tounderstand the technical and managerial problems of industry and are, therefore, quitecapable of enhanced participation in the management of industry. I have been feelingfor some time that we should we take a further step forward in our joint scheme orcooperation”.Finally let us end with the opinion of an independent individual:“May I hope that the relationship between the great House of Tata and the Workerswill be of the friendliest character, and that both of them will constitute a great familybringing in unity and harmony. It is the privilege of both of you…to given India inobject lesson in amity and goodwill”. -Mahatma Gandhi
MODEL QUESTION PAPER Paper 4.33 Industrial RelationsTime : 3 Hours Maximum Marks :100 PART – A (5 X 8 = 40)Answer any FIVE QuestionsAll questions carries equal marks 1. What do you understand by industrial relations? What are its objectives? 2. What are the objectives and functions of International Labour Organizations? 3. Explain grievance rederssal procedure. 4. What are the principles of code of discipline? 5. State the principles of collective boards? 6. What are the functions of wage boards? 7. What are the objectives employee education and training? 8. What is employee counselling? What are its objectives? PART – B (1X 15) = 60Answer any FOUR questionsAll question carry equal marksQuestion No. 15 is compulsory 9. Explain the role of Government, employers and the unions in maintaining smooth industrial relations. 10. Explain the relevant provisions of Constitution in protecting the labour. 11. What are the problems of trade unions? What are your suggestions for its effective functioning? 12. Explain the machineries constituted for settlement of industrial disputes. 13. What are the objectives and forms of workers’ participation in management? 14. Explain the types and management of conflicts. 15. Explain the purpose and process of Quality Circles.
BOOKS REFERRED1. Mamoria C B & Sathish Mamoria, “Dynamics of Industrial Relations”, Himalaya Publishing House, Mumbai.2. Tripathi P.C., “Personnel Management and Industrial Relations”, Sultan Chand and Sons, New Delhi.3. Bhagoliwal T. N. “Personnel Management and Industrial Relatoin”, Sahitya Bhawan, Agra.4. Daver R.S. “Personnel Management and Industrial Relations”, Vikash Publications, New Delhi.5. Kapur S. K. & Punia B.K. “Personnel Management and Industrial Relations”, S.K. Publishers, New Delhi.6. Tripathi S.D. & Arya P P, “Trade Union – Management Relation in India”, Deep & Deep Publication, New Delhi.