Their aspirations and
NAME: Anita Kumari
ROLL NO.: 12MBA05568
SEM: MBA (4th SEM)
Their aspirations and expectations
Introduction to the topic 1-3
Reason behind change
Change in the behavior of workforce
Firms point of view 4-5
Change in concepts of companies
Reason behind change in concepts of companies
Essence of changing workforce 6-12
Essence of changing workforce
IR Scenario 13-15
Concerning areas of IR
The Indian economy is volatile.
Organisations are greatly influenced by
changes taking place in internal as well as
external environment, and as a part,
workforce are also changing. They want
better salaries, better working condition
and defined career opportunities.
The needs of the present day workforce
have changed. It has transformed from
collectivistic to individualistic in nature.
There is also change in aspirations and
expectation of the workers. The
necessity of workers to have access to
and the right to knowledge ,culture and education is more imperative than ever before.
REASON BEHIND CHANGE
In the past, when one wanted to describe the demographic and social characteristics of the
work force and the career patterns of its members, it was common to divide individuals
into two categories: managers, or “salaried”, and workers, or “hourly” employees. The laws
governing employment practices still make this distinction, as salaried employees are
“exempt” from much of the wage-and-hour legislation that governs the rights of
“nonexempt” hourly employees. However, increasing diversity in both the characteristics of
the labour force and the organization of work have made these categories less helpful.
These circumstances, introduced new legal issues and new regulations to the workplace. As
per demands for labour continue to grow.As regard to new jobs; most of the new jobs are
created not in the large manufacturing firms but in the service sector, especially health
services, business services, social services management, and engineering. The majority of
these new jobs will be created by small rather than large firms. Furthermore, the
educational requirements of the “typical” job are expected to continue to increase.
Taken together, these trends worry many industrial relations personnel experts and
managers, who fear a mismatch developing between the characteristics of future entrants
to the labour force and the types of skills that will be in high demand. If this is true,
considerable efforts will be required to coordinate the two. This in turn implies that
individuals will need to engage in lifelong learning, training, and retraining and that firm will
need to increase their training investment. The changing nature of the labour force further
implies an increase in opportunities for women, minorities, and immigrants.
CHANGE IN THE BEHAVIOR OF WORKFORCE
The demographic of the workforce is currently changing. This is due to a number of factors
such as an aging population, labour shortages and immigration. Another significant factor
that has changed the workforce is the changes in the attitudes of workers; with the much
debated discussion regarding the different generation. Changes in the workforce mean that
employers may need to adapt their recruitment, training and management processes. An
example of this is that there are currently a large number of older people either currently
employed or seeking employment.
Where employers may have previously looked to younger people as a source of recruits,
they may now have to broaden their view to find what a wider range of people have to
offer. Many of these people may not have changed jobs in a significant period of time and
may require extra training to bring their skills up to date.
The expectations behind change in the behavior of workforce:
Better working conditions
A defined career growth
CHANGE IN CONCEPTS OF COMPANIES
To meet the current requirements both employer and employee should walk together.
Employers need to understand the changing aspirations of workforce, and must manage
the no-union or co-operative union model throughemployee engagement, including
communication, employee care, psychological contract, empowerment, employee
involvement, fair treatment etc.
To be successful these responsibilities must be fulfilled by managers/ management. Their
attitude towards the workers has a direct bearing on the workers perception, and
organizational justice. Organisation needs to be truly driven by knowledge to meet the
aspirations of the employee.
To fulfill above requirements nowadays the companies also moved from the concept of 8
hours to efficiency and productivity, hiring soft skill and emotionally intelligent personnel
for employee care and grievance management.
REASON BEHIND CHANGE IN CONCEPTS OF
The role of management would be to understand the changing demands are due to
changing needs and try to maintain a productive workforce.
Companies are changing to meet:
Productivity and quality.
To meet employee aspirations and interest.
Employee engagement and empowerment.
To achieve objectives, individual as well as collective, etc.
ESSENCE OF CHANGING WORKFORCE
The change and upgraded mindset of workers effected several organisational factors .The
factors mostly influenced by the blow of change, are:
Trade unions are a major component of the modern
industrial relationship system. A Trade union is an
organization formed by workers to protect their interests
and improve their working conditions, among other goals.
It is a continuous association of wage earners for the
purpose of maintaining and improving working conditions.
Globally, two distinct paradigms are in Industrial
Relations; neo-unitarism (absence of union) and neo-
pluralism ( co-operative unionism).Those management
which do not understand the contemporary issues of
workplace dynamics have had serious industrial unrest
because employee will always find trade unions relevant
to pursue their collectieive interest.
However, trade unions try to develop close working relationships with employers. This can
sometimes take the form of a partnership agreement between the employer and the trade
union which identifies their common interests and objectives.
Functions and Roles of Trade Union
Trade unions are a legitimate system for organizing workers to voice their rights and
grievances. Responsible unions play an important role in maintaining cordial relations
between management and labour. However, irrespective of Trade union’s political
affiliations, their generic functions may be categorized as follows:
Negotiate agreements with employers on pay and conditions
Discuss major changes to the workplace such as large scale redundancy
Discuss their members; concerns with employers
Accompany their members in disciplinary and grievance meetings
Provide their members with legal and financial advice
Provide education facilities and certain consumer benefits such as discounted
Value Addition and New Function
Joining A Trade Union
Some workers join a trade union because they believe that a union can:
negotiate better pay
negotiate better working conditions, like more holidays or improved health and
provide training for new skills
give general advice and support
Union members have the right to be accompanied to a discipline or grievance hearing by a
trade union representative (although trade unions are not compelled to provide this). All
employees, regardless of whether they are union members or not, are entitled to be
accompanied by a work colleague.
Recognized unions also have rights to consultation where redundancies or a transfer of
business are proposed. There is a regular subscription cost for union membership and
different rates may apply to trainees and part-timers. Unions will not normally help with
problems which pre-date membership.
Trade Union-Related Rights
The law gives the right to join a trade union wherever one works. This right applies whether
a union has been recognised or not. Worker is protected from being disadvantaged for
being a union member. Specifically trade union membership is an unlawful reason for:
Selecting for redundancy
Trade Union Activities
When a union is recognized by an employer, members have the right to time off at an
appropriate time to take part in trade union activities. These may include:
Voting in ballots on industrial action
Voting in union elections
Meeting to discuss urgent matters
Attending the annual conference
Contract labour, the labour of workers
whose freedom is restricted by the
terms of a contractual relation and by
laws that make such arrangements
permissible and enforceable. The
essence of the contract labourer’s
obligation is his surrender for a
specified period of the freedom to quit
his work and his employer. Other
stipulations cover such matters as
repayment of the costs of
transportation, housing, training, and other expenses.
Contract labour has been based upon conditions of poverty and upon political and religious
intolerance, and it is often expressed in penal codes. Historically, deception, kidnapping,
and coercion have been used to obtain contract laborers, with contractual terms often
reflecting the disadvantageous position of the laborer. Contract labour still carries
implications of compulsion and unfairness, and conditions can approach slavery in their
Indentured labour, one form of contract labour, was common in North America in colonial
times. Its subjects were western European (mainly British) males and females. Some of the
contracts were similar to apprenticeships, while the terms of others were harsh—usually
imposed on criminals whose sentences were commuted if they agreed to colonial
indenture. This practice is also known as indentured servitude.
Contract labour: a problem or a solution?
Abraham Lincoln once said “Labour is prior to, and independent of capital. Capital is only
the fruit of labour, and could never have existed if labour had not first existed. Labour is the
superior of capital, and deserves much higher consideration”. Though the words from
Lincoln have lost their true meaning in the way that most organizations operate today, they
still hold good for any business to be successful in the long run. The challenges of modern
business forced the organizations to part ways with the traditional system of direct
employment and use some alternate means of getting work done. While some
organizations went for outsourcing, others relied on contract labours as a solution to their
Before discussing the challenges that paved the way for contract labours, let us first know
what exactly contract labour is? contactlabour is “ a person hired on contract to perform
certain task”, the Indian Labour Law gives a much more extensive definition. It defines
contract labour as a person who is hired by the principal employer (the manager of a firm)
through a contractor in connection with the work of an organization. The manager goes
into an agreement with the contractor for the number of contract labours required by him
and in return pays to the contractor the amount agreed upon.
Finally, the contractor who is the employer of contract labours pays them the salaries for
the services rendered. In India, the act which governs the practice of contract labour is the
Contract Labour (Regulation and Abolition) Act 1970. According to the act, both the
principal employer and the contractor have to take prior permissions from the labour
department before engaging the contract labour.
Having understood what contract labour is, let us now understand why contract labour has
prevailed so much. Cut throat competition, globalization and economic uncertainty are
some of the main reasons which made contract labour an important part of every
organization. The need to deliver the products & services at lower costs has led to an
increase in employment of contractual workers who are paid almost a quarter of what a
permanent employee gets in an organization. Companies often pay them only the minimum
wages for which they are bound by statutory obligation whereas permanent employees
enjoy greater packages and benefits. And this indeed becomes one of the major reasons for
labour unrest. Today, companies face a lot of fluctuation in the demand for the goods and
services due to increased uncertainty of the economic conditions. And inflexible nature of
Indian labour laws makes the sustenance of companies even difficult, since it is almost
impossible to retrench permanent workers legally at short notice and this force companies
to use contract labour.
Although contract labour is one of the chief solutions to increased competition and has
become essential for the survival of a company, contract labour comes with its own
statutory obligations which if not met may lead to escalated problems in future for an
organization. On the contrary, abiding by the Contract Labour (Regulation and Abolition)
Act could be the solution to the legal problems which company may otherwise have to face
in the long run. Whether you see the history of cases or the recent incidents that have
arose in relation to the contract labours in India, you would find one thing very common:
most of the problems arising out of contractual labours have been either due to the non-
compliance to the labour laws or due to wrong interpretation and implementation of the
labour laws by the organizations.
The recent violence at Maruti, Manesar which took the country by storm and where in an
unfortunate incident an HR General Manager lost his life is one of the best examples of the
consequences which the company may have to face in case of non- compliance to the
labour laws. It was not only the loss to mankind, but also the defeat of the very purpose of
labour laws. Also another very important reason to be looked into is the archaic nature of
labour laws in India which make things even more difficult. The fines imposed under labour
laws are not sufficiently deterrent as the quantum of fines has not been revised over the
time. So many a times, it becomes more profitable for the organizations to violate the
labour laws and pay the penalties imposed, rather than to abide by them and to take the
pain of implementing them in their organization.
Looking at the recent incidents of contract labour unrest – be it the violence at Maruti,
Manesar; continued labour unrest at Hyundai, Chennai or the violence at Honda, Gudgeon;
the Government is keen to amend the Contract Labour (Regulation and Abolition) Act,
1970 so as to make it more welcoming for the contract labours. The intended change aims
not only to bring the salaries of contract labours at par with the permanent employees, but
also to give all other benefits which a permanent employee enjoys except assured job
security. But this move may kill the very purpose of engaging contract labour, depriving
companies the benefits of cheap and timely labour. And increasing the wages of the
contract labours may not be the only solution to all the grim problems. Organizations need
to make sure that they understand the laws fully and abide by it in order to get full
advantage of the contract labours. In addition, the government needs to ensure that not
only the laws are revised from time to time, but are also explained to the organizations in
detail so as to avoid any unfortunate situations & incidents in the future
In modern days, Industrial work has
become quite complex and different
from it was in earlier ttimes.With the
advent of modern industrialization
automation organizations have
undergone a major scale in terms of
Industrial relations are essentially
human relations, relation between
workers and management.No
organization can operate entirely
without human effort and IR is
responsible for fully utilizing a
corporations human resources.
“Industrial relations include securing effective and willing co-operation from employee and
reducing conflict between employers and workers and their representatives, the Trade
National Commission on Labor (NCL)
The National Commission on Labor (NCL) also emphasize on the same concept. According
to NCL, industrial relations affect not merely the interests of the two participants- labor and
management, but also the economic and social goals to which the State addresses itself. To
regulate these relations in socially desirable channels is a function, which the State is in the
best position to perform.
In fact, industrial relation encompasses all such factors that influence behavior of people at
work. A few such important factors are below:
Characters: It aims to study the role of workers unions and employersâ€™ federations
officials, shop stewards, industrial relations officers/ manager, mediator/conciliators /
arbitrator, judges of labor court, tribunal etc.
Institution: It includes government, employers, trade unions, union federations or
associations, government bodies, labor courts, tribunals and other organizations which
have direct or indirect impact on the industrial relations systems.
Methods: Methods focus on collective bargaining, workersâ€™ participation in the
industrial relations schemes, discipline procedure, grievance redressal machinery, dispute
settlements machinery working of closed shops, union reorganization, organizations of
protests through methods like revisions of existing rules, regulations, policies, procedures,
hearing of labor courts, tribunals etc.
Contents: It includes matter pertaining to employment conditions like pay, hours of works,
leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc.,
laws relating to such activities, regulations governing labor welfare, social security,
industrial relations, issues concerning with workers’ participation in management, collective
CONCERNING AREAS OF IR
IR covers the following areas:
Role of management, unions and government
Machinery for resolution of industrial dispute
FACTORS EFFECTING IR SCENARIO
Relationship between management and workers
Protect workers interest and improve their economic condition
“Extreme care for employees while nurturing & strengthening
of the core values of workers.”
We are living in a turbulent time. The consumer behavior is changing. That the need of the
present day workforce has changed. There is a change in aspiration and expectation of the
workers. Today’s younger workforce displays several new features. It is talented, educated,
more demanding for career opportunities and rewards as compared to older generation.
They respect diverse opinion and personalities. Aspirations of the working population and
the nature of the economy offer an answer to today’s fraught industrial relations.
“To meet the need of workers and industrial peace & growth management should start
thinking about individualism.”