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Durga steel-a case study of IR


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Its a case study of industrial relation and its is based on the topic trade union response on technological changes.

Published in: Education, Technology, Business

Durga steel-a case study of IR

  1. 1. Presented by- NUPUR AGRAWAL Presented to Dr. D.S.YADAV SIR.
  2. 2. History of the Durga Steel Limited Set up by the public sector in the late 1950s. Report to Hindustan Steel ,merged with the holding company SAIL in 1972. The salaries of the managerial staff were in line with those of other public sector organizations but were lower than those in the private sector. Personnel-29,224 employees: 26,724 workers and 2500 executives.
  3. 3. Location of DSP In the state of West Bengal ,which is less developed. (158 Km from Calcutta) DSP set up residential colonies to the plant for its employees of all levels. Reasons for the less development of the industry in West Bengal are-  the militancy of unions.  Inadequate development of infrastructure.
  4. 4. Strained Industrial relations DSP had three unions. Majority membership was with the union affiliated with the CPM. Managers at all levels were afraid of the unions. Inter-union rivalry for the dominance among the unions .
  5. 5. The Managerial Climate The supervisory and the managerial personnel were demoralized. Unable to exercise authority. Felt helpless in their position and the pressure from top management for more production.
  6. 6. Financial problems Production started drooping. Under utilization of the capacity of the plant. Profits were decreasing. High production cost. High manning ratios relative to its output. Year Crude Steel Saleable steel Hot steel Pig steel 1964-65 1006 721 1313 386 1992-93 676 641 725 17
  7. 7. Other problems Poor product quality. High level of pollution. High energy consumption.
  8. 8. Recommendations for these problems  Modernization of the plant. To change the attitudes of the employees at all levels and in management practices.
  9. 9. Implementation of the technological change Cover three aspects-  Adding capacity;  Replacing some machinery , plants and equipments;  Introducing and replacing old technology with new technology.
  10. 10. Relations with the unions Formation of the forum of unions.- The management had to work towards becoming transparent. Formulation of joint committees to determine the manpower required for each department, training, combining of certain operations. Agreement between DSP and unions on wages and service conditions and VRS of surplus employees.
  11. 11. Employee Workshops Aimed to identify the work practices that hindered performance . Identification of work practices that needed to be changed. For all levels of employees. Priorities for action. ADVANTAGES- Creation of a sense of ownership of ideas among employees at all levels.
  12. 12. Managers should manage To be sympathetic but firm. The Human Aspect. Face to face interaction between supervisors and employees. Sharing data about production, quality, demand ,future plans, will make employees feel like they are a part of the organization.
  13. 13. Conclusion Vast change in the relations with the trade unions. The operating management had more confidence in handling production problems than before. Improvement in work culture. The unions had divided to cooperate. Generation of a sense of confidence about the future among the managers and the employees. The training programmes were uniformly appreciated by all employees.
  14. 14. Results of the technological changes Employment issues.(positive effect as it was long term) Changes in occupational profiles. Education and Training. New Working Arrangements and Managerial Attitudes. Industrial relations.
  15. 15. Trade union response Fear of unemployment. Problems of retraining. Change in the work culture.
  16. 16. Ways to reduce resistance to change Appropriate training. Negotiated change. Supportive management practices.
  17. 17. Benefits from technological changes in DSP Higher level of production Improvement in the profitability. Conservation of the energy. Improvement in the quality of the finished products. Reduction in the environmental pollution.
  18. 18. “A Short Course in Human Relations The 6 most important words: I admit I was wrong. The 5 most important words: You did a great job. The 4 most important words: What do you think? The 3 most important words: Could you please. The 2 most important words: Thank you! The most important word: We. The least important word: I."
  19. 19. Thanks…………….