Management of industrial relations www.it-workss.com

ZAD Institute of IT & Managment Managment of Industrial Relations
ZAD Institute of IT & Managment
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Extrnal Marks : 70
Internal Marks : 30
Time : 3 Hrs.
MANAGEMENT OF INDUSTRIAL RELATIONS
Paper Code : OBHRD6
Unit-I
Industrial Relations Perspecties : Concept, Scope & Objectives, Industrial Relations
& Emerging Socio economic Scenario, Industrial Relations & the State Industrial
Relations in India, Emerging trends in Industrial Relations, Industrial Relations and
Technological change.
Unit-II
Trade Unions - Functions and Objectives; Development of trade Unions in India; Pattern
of trade Unions in Structure, Central trade Union Organisation; Registration and
Recognition of trade Unions; Management of trade Unions; Problems of Indian trade
Union Movement; White collar and Managerial trade Unions; Employers Associations;
Trade Union response toward libealisation and technological change. Employee
response to industrial restricting and organisation reengineering. Future of trade Unions.
Unit-III
Dynamics of Industrial Conflicts; Discipline and Grievance Management, Nature and
types of collective Bagaining; Emerging trends in collective Bargaining; Productivity
bargaining, negotiation and collective bargaining settlement, Settlement Machinery.
Unit-IV
Col-ownership Management - Concept, Significance and Historical Development; types
of workers Participation in Management, Practices; Level of Participation; Models in
WPM; Co-ownership Forms of WPM, Issues in Labour Flexibility paticipation;
Strategies and Planning for implementing WPM effectively.
Empowerment and Quality Management.
Suggested Readings
1. New Delhi, Oxford University Press.
2. Venkata Ratnam, C.S. and Sinha, Pravin,Trade Unions Challenges at the Deginning
of 21” Century, HRA-Excel Books, New Delhi.
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Unit-I
Q. Bring out clearly the nature, scope & importance of industrial
relations in the context of the present-day industrial set-up.
Ans. Industrial relations are as old as the industry itself. With the passage of time,
industrial relations have become one of the most delicate & complex problems of
modern inustrial society. In the medieval society, when the relations between the master
& servant were diret & personal, it was easy to secure cooperation from the workers.
Industrial relations were very simple because worker could easily approach his employer
to get his difficulties removed & moreover, there were no organised association of the
workers.
The Concept of Industrial Relations :- Broadly, the term “Industrial Relations” is
used to denote the collective relationships between management & the workers. The
two-terms, labour management relations & employer-employee relations are
synonymously used. Relations in industry chiefly exist between the workers & the
management. This is the reason why Bethol & associates assert, “Industrial relations
is that part of management which is concerned with the manpower of the enterprise.
Manpower of the industry can brodly be classified as management & workers. The
relationshp can either be cordial or otherwise which depends on the attitudes &
approaches of management & those of workers. While attitude is the internal psychic
or mental state of a person, approach can be external expression of such an attitude, &
this determines mutual relationship.
In the workds of J.Henry Richandson “Industrial Relations is an art, the art of
living together for purposes of production.” The field of industrial relations includes
the stuy of workers & their trade unions, management, employers associations & the
state institutions concerned with the regulation of employment. Industrial societies
necessarily create industrial relations defined as complex of inter-relations among
workers, managers Y government. Acc. to Casselman’s Labour Dictionary, “the term
industrial relations is defined as “the relations between employers & employees in
industry. In the broad sense, the term also includes the relations between the various
unions, between the state & the unions as well as those between the employees & the
state. “Industrial Relations are an integral aspect of social relations arising out of
employer-employee interactions in modern industries, which are regulated by the State
in varying degrees, in conjunction with organised social forces & influenced by the
existing institutions. This involves a study of the state, the legal system, & the workers
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relations with a view to establishing harmonious labour management relations. They
are :-
i) Good labour management relations depend on employers & trade unions being
able to deal with their mutual problems freely, independently & responsibility.
ii) The trade unions & employers & their organisations are discuous of resolving
their problems through collective bargaining, though in resolving such problems
the assistance of appropriate govt. agencies mght be necessary in public interest.
iii) The workers & employrs organisation should be desirous of associating with
govt. agencies in consideratio of general, public, social & economic measures
affecting employers and workers relations.
iv) To check industrial conflicts & minimise the occurence of strikes, lockouts &
gheraos.
v) To minimise labour turnover & absenteism by providing job satisfaction to the
workers & increasing their morale.
vi) To establish & develo industrial democracy based on workers partnership in
management of industry.
vii) To participate govt. control over industries in regulating production & industrial
relations.
Scope of Industrial Relations
In its narrow sense, industrial relations include the relationships that emerge out of the
day-to-day assocation of the management & the labour. An industry is a social world in
miniature. Associations of various persons, workman, supervisory staff, management
& employers in industry creats industrial relationship :-
i) Labour management relations, i.e. relations between union & management or
employer-employee relations.
ii) Group relations i.e. elations between various groups of employees.
iii) Community on public relations i.e. relations between the industry & the society.
The major aspects of industrial relations are :-
1. Promotion of healthy labour-management relations.
2. Maintenance of ndustrial peace & avoidance of industrial strike.
3. Promotion of industrial democracy.
1. Promotion of Healthy Labour Management Relations :- It required the
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industry. For achieving this objective, following techniques are usually adopted:-
a) Establishment of the shop councils & Joint Management Councils at the
shop floor & the plant levels.
b) Recognition of Human Rights in Industry :- This implies that labour is
no more an article or “Commodity of Commerce” which can be purchased &
disposed of according to the sweet whims Y caprices of the employers. The
workers are to be treated as human beings, given a sense of self-respect &
better understanding of their role in the organisation & their urge for self-
expression.
Importance of Good Industrial Relations :- Good industrial relations refer to
harmonious relations between the labour union and the management in an organisation.
Such relations will lead to the following benefits :-
1. Industrial Peace :- Cordial industrial relations bring harmony & remove causes
of disputes. This leads to industrial peace which is an ideal situation for an
industrial unit to concentrate on productivity & growth.
2. Higher Productivity :- Due to cordial industrial relations, workers take interest
in their jobs & work efficiently. This leads to higher productivity & production
of th enterprise where they are working.
3. Industrial Democracy :- Sound industrial relations are based or consultation
between the workers & the management. This assists in the establisment of
industrial democracy in the organisation which motivates employees to
contribute their best to the success of te organisation.
4. Collective Bargaining :- Cordinal industrial relations are extremely helpful
for entering into long-term agreements as regards various issues between labour
and management. Such collective bargaining agreements & asociation of
employees in decision-making process will bring about cooperation between
labour and management.
5. Fair Benefits to Workers :- The workers shold get sufficient economic and
non-economic benefits to lead a happy life. It is possible when the relations
between workers & management are cordial and the productivity is high.
6. Higher Morale :- Goo industrial relations imply the existence of an atmosphere
of mutual co-operation, confidence and respect within the enterprise. In such
an atmosphere, there are common goals, which motivate all members of the
organisation to contribute their best.
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Unit-II
Q. Comment and discuss the role of state in industrial relations in
India.
Ans. It is the responsibility of the state to achieve & preserve industrial peace in the
country for economic growth and development. He has divided the objectives of
industiral relations into four categories :
i) improvement in th economic conditions of workers in the existing state of
industrial management & political govt.
ii) control exercised by the State over industrial undertakings with a view to
regulating production & promoting harmonious industrial relations.
iii) socialisation or rationalisation of industries by making the state itself a major
employer.
iv) vesting o a proprietory interest of the workers in the industries in which they
are employed.
In a demoractic set up, industrial relations policies are shaped by basic philosoph
for governance of the people based on human values for freedom and human rights.
They are also influenced by the stage of development of the economy and the strategies
of development. Social policies concerning job and earnings security, etc. are
influenced by the economic halth, employment-unemployment situation etc. Such
influence could be reciprocal too. In a sound economy with near full employment
situation it would be possible to offer better jobs & earnings security.
Constitution & Labour Policy :- The preamble to the constitution of India provides
the framework within which the labour policies on be formulated in India :-
“We, the people of India, having solemnly resolved to constitute into a sovereign socialist
secular democratic republic and to secure to all its citizens.
Justice, social, economic and political.
Liberty of thought, expression, belief, faith and worship.
Equality of status nd of opportunity and to promot among them all fraternity assuring
the dignity of the individual an the unity and integrity of the nation”.
The state is to secue a social order for the promotion of welfare of the people. Towards
this end, the state shall, in particular diret its policy towards securing :
a) that the citizens, mn & women equally, have the right to an adequate means to
livelihood.
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The objective of the labour policy mere better discipline industry, increased production
& improved productivity. For better industrial relations, the plan stressed mutual
negotiation, conciliation & volutary arbitration. The II plan suggestd that statutory
provision should be made for the recognition of unions, & keeping in mind the need
for having are union in an industry.
The Third Five Year Plan (1961-1966)
This plan aimed at consolidating, stabilising & expanding the measures taken
during the Second Plan. In the matter of industrial relations, the Third Plan emphasized
the implementation of the code of Discipline. The plan suggested that workers
participation is management should be acceptd as a fundamental principle & an urgent
need. The plan also laid emphasis or an intersive programme of the workers education
in all establishments where such councils are set up.
The Fourth Five Year Plan (1969-1974)
It continued with the labour policy formulated undr the Third Plan. It laid greatr
emphasis on generation of employment. The strategy developed by this plan was unique
in the sense that it emphasized labour intensive programmes through the deveopment
of agriculture & the rural infrastructure like electrification, water-management & so
on. It laid emphais on :-
i) industrial relations, healthy trade union movement.
ii) collective bargaining & productivity should be increased through labour
management cooperation.
iii) industrial disputes should be settled by voluntary arbitration.
The Fifth Five Year Plan (1974-1979)
It laid emphasis generation of employment & labour welfare. The need fo greater
mobility of labour was also stressed, espeially from labour surplus to labour starned
one as. Stress will be laid on strengthening industrial relations & conciliation machinery,
better enforcement of labour legislation, research in labour relations & labour laws,
importing training to labour officers, improvement of labour statistics & undertaking
studies in the field of wages & productivities.
The Sixth Five Year Plan (1980-1985)
This plan emphasized on labour & labou welfare. After a brief overview of the
labour situation in the country, which highlighted the wage & bonus issue, in terms of
wage differentials, national minimum wage & the need for productivity linked bonus,
the document highlighted a few thematic concerns.
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* changing profile of workforce, eg. increased education, rising share of women
in the workforce, increased emphasis on fulfilment of pschological needs.
* increasd numbr of merges & acquisitions leading to redundancy of thousands
of workers.
* increased pressure on organisaions to contract out the various service like house-
keeping, security, gardening & paraclinical.
* changing needs & expectations of customers rendering the exiting processes &
products obsolete.
The above trends will have a tremendous impact on the tasks of future Industrial
Relations Managers who will have to act as ‘Change agents’ or ‘Change facilitators’.
They will have to build up ‘learning organisations’ having the capacity & capability to
learn from experimentation, past experiences & the experiences of others & transfer
the learning to all human resources for greater organiational effectiveness.
Changes in Workforce Profile :-
a) Increase in Education Level :- The govt. of various countries are taking steps
to eradicate illiteracy & increase the education levl of their citizens. Educated
consumers & workrs will create very tough task for the future managers.
b) Change in Skill Level :- The rapid pace of globalization has resulted in the
need for more & more skilled workers in certain sectors like chemicals,
informations technology, biotchnology, pharmaceutical etc. Modernisation, in
general, has increased the demand for highly skilled and technological
empowered workers.
c) Knowledge Worker :- The use of modern technology of the new management
styles has resulted in the need for ‘knowledge workers’ who are multi-skilled.
d) Age Group & Aspirations of Workers :- Workers in today’s industries belong
to the younger generation whose aspirations are different from those of the
earlier generations. Today’s workers want to progress in their life and have an
ideal about the lifestyle they want to lead. Considerable changes have been
noted in the worker of today in comparison to his counterpart of 1950’s.
The following steps can be suggested to improve the industrial relations scenario in
India :-
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Unit-II
Q. Explain trade unions, its functions and objectives.
Ans. Trade Unions :- Trade unions means an association of workers in a particular
industry. “Trade unions are voluntary organizations of workers formed to promote &
protect their interests through collective action”. In legal sense, it means an group
formed particularly for the purpose of regulating the relations between workrs &
employers”. Acc. to C.J. Nanson, “A trade union is essentially an organisation of
workers. Its main function is to enable the workrs to ct together, the individual by
himself in a week bargaining position to negotiate with employers.
Acc. to Dale Yoder, “Trade union is an continuing long term association of
employees formed for me specific purpose of advancing & protecting the interests of
members in their working relationships.
The key role of trade unions in any society is to act as a counter vailing power to
ensure that considerations of enterprise and efficiency are balanced by equity. Trade
unions not only seek to get more for their members, but also prevent exploitation and
ensure that economic development is not an end in itself, but a means to human
development and progress.
Functions of Trade Unions
Organisation
Employers
Trade Unions
Workers
Organisation
A) Directly concerned with workers :-
1. Regulating relations between the workmen and employers.
2. Organization of workers to protect their socio-economic interest.
B) Management and Workers :-
1. Advise the management.
2. Personnel policies and practices government.
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3. Recognition & participation :- Another objective that unions seek to achieve
is winning recognition for the fact that they are equal partners with management in task
of production.
4. Gaining legislatic enactments :-
a) Legal section to its demands.
b) Santions to be framed in the form of acts so that they become permanent
features of one contract between the employees & the workers.
5. Miscellaneous Services :- Modern trade unions also engage in providing
educational, medical, recreational & other facilities for the development &
welfare of their members & their families, if they have sufficient funds at their
disposal.
Q. Explain trade unions development in India & pattern of trade union in
structure.
Ans. The evidence on trade unions role in economic development & chancing the
competitiveness of nations & enterprises is mixed. The world competitiveness report
annually assesses the competitiveness of labour as measured across 10 sub-dimensions
in over 50 countries. A few industry studies indicate that unions are associated with
more efficient production.
The beginning of trade union movement (1875-1925) :-
In 1875, a few plilntropists led by “Sheir Dorabyu” Bengali stated in agitation
to draw the attention of the govt. towards the need of legislative measures to protect
child & women labour in particular & workers in general.
Such pressure from one social informers and also pressure from the traders of
Lancasline (a textile centre in England) compelled the govt. to move and on the basis
of the report of the factories commission, set up in 1879, First Indian Factories Act
was enacted in 1881. The act proved to be inadequate and caused a great disappointment.
Indian Factory Act, 1891 :-
While the recommendations of the Indian Factory Commission of 1884 were
still under consideration. Several factors resulted in appointment of another factory
commission in 1890. The important provisions of this Act were the regulation of
hours of work for women labour to 11 hrs. a day with rest internal for one and half
hours and the raising of the minimum and maximum ages of children to 9 and 14
respectively.
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trae unions need to intro spect on whether they are being or becoming like the
employers they do not want their members employers to be. Trade union
leadership should appreciate the worth of committed, competent and motivated
staff.
NINE PRINCIPLE OF TRADE UNION UNITY
The All India Trade Union Congress (AITUC) which split thrice in 1947, 1948
and 1970 laid down the following nine principles in the year 1958 to guide the move
towards unity :-
1. Unreserved acceptance of, and respect for democratic functioning of trade
unions.
2. Regular and democratic elections of the executive bodies and office bearers.
3. Proper representation of all trades in the leading organs of the common
organization.
4. Right of every worker and trade unionist to belong to any political party of his
own choice.
5. Freedom from interference in the internal affairs of the organization by the
govrnment, employers, and political parties.
6. All vital decisions affecting the workers interests including important collective
agreements with the employers to be endorsed by the general body of the
workers.
7. All decisions on political issues to be conditional on 75% majority.
8. In the normal course, strike action to be taken only as a last resort and after
properly ascertaining the wishes of the workers.
9. Rival unions in the same factory, industry, undertaking be wound up either by :-
a) allowing workers to select the union of their choice through a secret
ballot.
b) imaging them together on the basis of the proportional representation
according to their respective membership.
c) any other democratic and mutually agreed procedure.
Pattern of trade unions :-
1. Craft Union :- It is a union whose members do some work, after usng specialized
skills and training.
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e) Deal with safety and health at work place and working environment.
f) Initiate steps to improve public image and improve public relations.
g) Educate the public regarding the characer, scope, importance and needs of trade,
industry and commerc represented by members.
Problems of Trade Union Movement in India
Trade union in India is suffering and that too from all the aspects, economic, social and
political too.
1. Uneven Growths :- Trade union activities are not even.
C1
C2
C1
+ C2
+ C3
+ Cs
C4
C3
C1
to C4
are not at even scale. Large scale industries normally have trade unions
and that too mainly in bigger centres like Mumbai, Ahmedabad, Indore, Kanpur and
Plantation labour in Assam.
2. Low Membership :- Average number of members of trade union gradually
goes down and down. Rivalry among the leaders of trade unions has resulted in
municipality of unions thereby reducing the average size of membership.
3. Weak Financial Position :- The financial position of the trade unions is very
weak becaue their average yearly inome is very low and inadequate. Total expenditure
of the unions are very much in excess than their income.
4. Multiplicity of Unions :- Here exist many trade unions in the same
establishment. There are at times as many as twenty unions in the same plant. The
existence of this phenomenon can be attributed partly to the domination of outside
leaders and party to the labour laws.
5. Intr-union Rivalry :- Due to the existence of multiple unions there occurs the
problem of union rivalry. Unions try to play down each other in a bid to gain greater
influence among workers. In the process they do more harm than good to the cuase of
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Legal Status of a Registered Trade Union
* A registered trade union is a body corporate with perpetual succession and a
common seal.
* It can acquire, hold sell or transfer any movable or immovable property and can
be a party to contracts.
* It can sue and be sued in its own name.
* No civil suite or other legal proceeding can be initiated against a registerd trade
union in respect of any act done in furtherance of a trae dispute under certain
conditions.
* No agreement between the members of a registered trade union shall be void or
voidable merely on the ground that any of its objects is in restraint of trade.
Appointment of Office Bearers
At least 50% of the office bearers of a union should be actually engaged or
employed in the indusry with which the trade union is concerned, and the remaining
50% or less can be outsiders such as Lawyers, politicians, social workers etc.
To be appointed as an office bearer or executive or a registered trade union, a
person must have
a) attained the age of 18 years; and
b) not been convicted of any affiance involving moral turpitude and sentenced to
imprisonment, or a period of at least 5 yers has elapsed since his release.
Recognition of Trade Union
A union must be recognized before it may effectively represent any employees
15.
Once a union is recognized it serves as the bargaining agent for the workers in a
particular bargaining unit 16. An employee may not circumvent the Union 17, because
recognition entails willingness ‘to negotiate with a view to striking a bargain and this
involves a positive mental decision’ 18 The Trade Union Act, 1926 however, was
conspicuously silent with regard to provisions regarding compulsory recognition of
the unions by employers for the purpose of negotiation and bargaining on account of
employers’ stiff opposition who were not still reconciled with the trade unions.
Recognition of trade union is the backbone of collective bargaining. It has been
debated time and again. But inspite of the governent stated policy to encourage trade
union there is no enforced central legislation on this subject. There are however
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similar kind of hierarchy of organization design and structure. The company has been
successfully using the structure which gives a positive sign on the companies smaller
than it to use similar type of organization structure as a part of the companies re-
engineering process for its own development.
The Structure and Process of Organizing
Firstly the structure must reflect objective and plans because activities derive
from them.
Secondly it must reflect the authority available to an enterprise management.
Authority in a given organization is a socially determined right to exercise
discretion; as such it is subject to change.
Thirdly an organization structure must reflect its environment. It must be
designed to work, to permit contributions by members of a group, and to
help achieve objectives efficiently in a changing future.
Fourthly the grouping of activities and the authority relationships of an organization
structure must take into account people’s limitations and customs. Thus,
an organization structure must be designed around individuals instead
around goals.
Why reengineering ?
‘Re-engineering business processes’ has become an essential element in many
companies’ attempts to improve their competitive position in the marketplace. The
power of modern information technology must be utilized to radically redesign business
to achieve the major improvements in performance. Re-engineering endeavors to break
away from the old rules about how we organize and conduct business, and in a major
hope to break away from the antiquated processes that threaten to drag businesses
down.
For example, Through re-engineering, Ford was able to achieve a 75% reduction in
head count of its Accounts Payable Department, previously consisting of 500
employees. Matching of invoices and check preparation is done automatically.
For example, Mutual Benefit Life has re-engineered its process of insurance
applications. The processing of complex insurance applications which had taken from
5-25 days, involving 19 different employees, can now be done by one individual with
an average turnaround time of 2-5 days eliminating 100 field office positions.
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For developing internal vitality, a strong and stable trae union movement is
essential for the proper functioning of industry.
Multiplicity of unions in the same plant leads to inter-union rivalry that ultimately
cuts at the root of the trade union movement. It weakens the power for collective
bargaining and reduces the effectiveness of workers in securing their legitimate rights.
Therefore, there must be only one union in one industry. In order to strengthen the
trade union movement in the country, there is an urgent need to improve trade union
finances, develop leaers from the ranks of workers, recognise a bargaining agent on
the basis of strong membership figures, promote one union one industry policy, strict
criteria for recognising a representative union, strong political support for labour-
related issues etc.
Trade union should concentrate on these things rather than having conflicts among
themselves on personnel issues :-
* Securing economi benefits to members.
* Improving the working conditions.
* Protecting members from unilateral acts and disciplinary actions of management.
* Fighting against inappropriate personnel policies.
* Promoting the welfare of members.
* Improving employer-employee relations.
* Carrying out negotiations with management in a fair manner.
* Safeguarding organisational health and the interests of the industry.
Q. What do you understand by White Collar and Management trade unions ?
Ans. A white collar job is typically associated with clearical, sales or managerial
occupations. The traditonal dress code for such work is often a white button-down
dress shirt and tie.
The term white-collar worker refers to a salaried professional or an educated
worker who performs semi-professional office, administrative, and sales coordination
tasks, as opposed to a blue-collar workr, whose job requires manual labor. “White-
collar work” is an informal term
A. Middle Class Unions not merely constituting with workers.
B. They consist of clerical staff mainly.
C. They are formed on formal as well as informal basis.
D. Improving employer-employee relations.
E. Working on Social Benefits.
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e) Monetary benefit.
f) Non-monetary benefits.
With this another concern was the plan document emphasized on the needs to
ensuring quality of employment in the unorganised sector units improves in term of
earnings, conditions of work and social security.
Technological change and its response :-
Technology :- The first dimension of labour policy is technology whic is the most
dynamic factor of change in economy. The process of technological changes goes
hand in hand with changes in the structure of the labour force.
Economic Development :- In order to tackle problems like :-
1. Unemployment.
2. Less productivity.
3. Low rate of incrase in per capita consumption.
4. Inflation.
Economy must have to go at a very fastpace on the track of development, so
govt. keeping this in mind that whee steps are needed to tackle all this problems.
New Industrial Policy :-
It was announced by govt. of India in 1991. This policy brought about a drastic
change in the orgnization and working of the industrial system of the country.
Talks like this and plans like this will developed workers and workers here very
much on satisfaction level.
Encouragement to workers about :-
a) Intensive Training.
b) Skll Development.
c) Benefits.
Led to the emergence of workers that were now willing to give more than their
100% to me organisaiton even. Though some opposed it saying it was not as they
promised earlier, but more in No.’s got benefitted in real terms.
Workers saw this thing with :-
A) Progressive Outlook.
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Unit-III
Q. Discuss the term Industrial Conflicts : Discuss the various forms
of industrial disputes.
Ans. Industrial relations are invariably a combination of cooperation, collaboration
and conflict between labour and management.
Some degree of conflict always remains because of the following reasons :-
a) Both labour as well as management have different orientations & perceptions
which generate generally negative images about each other.
b) Both the groups claim complete rationality for their demands, because there
are no mutually accepted norms to guide their behaviour in the pursuit of their
objective.
c) Both the groups don’t come on the negotiation table with a clean state. They
bring with them some carry over effect from the past which signifies the
existence of conflict between the labour and management.
Industrial Disputes :-
Conflicts as one of the features of industrial relaions is a general concept. But
when it requires a concrete and specific manifestation, it becomes an industrial dispute
i.e. industrial conflict is general whereas industrial dispute is specific.
The term “industrial dispute is defined by Section 2(K) of the Industrial Disputes
Act, 1947 as, “any disputes or differences between employees and employers, or
between employers and workmen, or between workmen and workmen, which is
connected with the employment or on employment or the terms of employment or
with the conditions of labour, of any person”.
Industrial dispute is disagreement and difference between two disputants, namely
labour and management. This disagreement or difference could be on any matter
concerning them individually or collectivelybut must be connectd with employment or
non-employment or with the conditions of labour. The above definition of Industrial
Dispute could be divided into four parts :-
i) Factum of dispute.
ii) Parties to dispute.
iii) Subject matter of dispute.
iv) Industry.
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4. Indiscipline :- Industrial disputes also take place because of indiscipline and
violence on the part of the workforce. Lock-outs are resortd to by the
managements to curb indiscipline and violence.
Q. Explain the machinery for the settlement of Industril disputes in India ?
Ans. Industrial Peace requires that the causes of industrial disputes should be
eliminated. In other words, reventive steps should be taken so that industrial disputes
do not occur. But id preventive machinery fails, then the industrial ispute settlement
machneryshould be activated by the govt. because non-settlement of disputes will prove
to be very costly to the workers, management and the society as a whole.
Machinery for Handling Industrial Disputes
Preventive Machinery Settlement Machinery
(Voluntary or non-statutory) (Statutory)
Workers Collective Grievance Trpartite Code of Standing
Participation Bargaining Procedure Bodies Discipline Orders
in Mgmt.
Conciliation Court of Voluntary Adjudication
Enquiry Arbitration
Conciliation Conciliation Labour Industrial National
Officers Board Courts Tribunals Tribunals
Preventive Machinery :-
The preventive machinery has been set up with a view to creating harmonious
relations between labour & management so that disputes do not arise. It comprises
of the following measures :-
1. Schemes of worker’s participation.
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a) to promote uniformity in labour legislation;
b) to lay down procedure for the settlement of industrial disputs.
c) to discuss matters of all India importance as between employers and
employers.
d) The ILC advises the govt. on any matter referred to it for advice, taking
into account suggestions made by the state govt. and representatives of
the organisations of workers and employers.
5. Code of Discipline :- Code of Discipline is a set of self-imposed mutually
agred voluntary principles of disciptive and good relations between the
management and the workers in industry. In India, Code of Discipline was
approved by the 18th Indian Labour Conference held n 1958.
According to the National Commission on Labour, the code in reality
has been of limited use. When it was started, very favourable hopes were thought
of it, but soom it started acquiring rest : Main reasons for the lapses on the part
of the employers and employees to secure harmonious relations through the
code may be listed as below :-
1. There was absence of self-imposd voluntary restraint on the part of the
parties.
2. The worsening of economic situation led to the erosion of real wages of
the workers.
3. The rivalry among labour representatives.
4. Conflicts between the code and the law.
5. The state of indiscipline in the body politic, i.e. the whole set up is charged
with indiscipline and the code could not work.
6. The employers could not implement the code in many respects for reasons
beyond their control.
6. Standing Orders :- The terms & conditions of employment have been a bone
of contention between labour and management since the advent of factory system.
Under the Industrial Employment Standing Orders Act, 1946, it was made
obligatory that standing orders would gover the conditions of employment. The
standing orders regulate the conditions of employment from the stage of entry
to the organisation to the stage of exit from the organisation. The standing
orders provide Do’s and don’ts, they also act as a code of conduct for the
employees during their working life within the organization. It define with
sufficient precision the conditions of employment under the employees and
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of his intention to commence conciliation procedings from a specified date. The
conciliation office s required to submit his report to the appropriate govt. alongwith
the copy of the settlement arrived at inulation to the dispute or n case conciliation has
fialed, he has to send a detailed report giving out the reasons for failure of conciliation.
The report in either case must be submitted within 14 days of the commencement of
conciliation proceedings or earlier. But the time for submission of the report may be
extended by an agreement in writing of all the parties to the dispute subject to the
approval of the conciliation officer.
Board of Conciliation :- In case conciliation officer fails to resolve the differences
between the parties, the govt. has the discretion to appoint a Board of Conciliation.
The Board is tripartite and adhoc body. It consists of a Chairman and two or four other
members. The Chairman is to be an independent person and other members are
nominated in equal numbers by the parties to the dispute. Conciliation proceeding
before a Board are similar to those that take place before the conciliation officer. The
govt. has yet another option of referring the dispute to the court of inquiry instead of
the Board of Conciliation.
2. Court of Inquiry :- In case of the failure of the conciliation proceedings to
settle a dispute, the govt. can appoint a court of inquiry to enquire into any mater
connected with or relevant to industrial dispute. The court of enquiry is required to
submit its report within a period of six months from the commencement of enquiry.
This report is subsequently published by the govt. within 30 days of its receipt. A court
of enquiry is different from a Board of Conciliation. The formr aims at inquiring into
and rvealing the causes of an industrial dispute. On the other hand, the latter’s basic
objective is to promote the settlement of an industrial dispute. Thus, a court of enquiry
is primarily a fact-finding machinery.
3. Voluntary Arbitration :- On failure of conciliation proceedings, the
conciliation officer may persuade the parties to refer the dispute to a voluntary arbitrator.
Voluntary arbitration refers to getting the disputes settled through an independent person
chosen by the parties involved mutually and voluntarily. In other words, arbitration
offers an opportunity for a solution of the dispute through an arbitrator jointly appointed
by the parties. The process of arbitration saves time and money of both the parties
which is usually wated in case of adjudication.
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b) The application and interpretation of Standing Orders.
c) Discharge and dismissal of workmen and grant of relief to them.
d) Withdrawal of any statutory concesion or privilege.
e) Illegality or otherwise of any strike or lockout.
f) All matters not specified in the third schedule of Industrial Disputes Act, 1947.
Q. Explain Discipline and Grievance Procedure.
Ans. Broadly speaking, discipline means orderly behaviour of individuals towards
the desired goals of the group. The word “discipline” owes its origin to religion.
No organisation can prosper without discipline. Discipline has been a matter
of utmost concern for all organizations. Discipline is concerned with employees at all
levels.
The Concept and Nature of Discipline :-
Discipline may be defined as a force that prompts individuals or groups to
observe the rules, regulations and procedues which are deemed to be necessary for the
effective functioning of an organisation. According to Ordway Tead, “Discipline is the
orderly conduct of affairs by the members of an organisation.
Discipline in industry may be describd as willing cooperation and observance
of the rules and regulations of the organisations by the management and the workers. It
means securing consistent behaviour in accordance with the accepted norms of
behaviour. Discipline is essential to a democratic way of life. Simply stated, discipline
means orderliness.
Aspects of Discipline :- There are two aspects of discipline, positive and negative
aspects :-
1. Positive Aspect :- Employees believe in and support discipline and adhere to
the rules, regulations and desired standards of behaviour. Discipline takes the
form of positive support and reinforcement for approved actions and its aim is
to help the individual in moulding his behaviour and developng him in a corrective
and supportive manner. This type of approach is called positive approach or
constructive discipline or self-discipline.
2. Negative Aspect :- Employees sometimes do not believe in discipline. As
such, they do not adhere to rules, regulations and desired standards of behaviour.
As such, disciplinary programme forces and constraints the employees to obey
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Code of Discipline :-
In India, the problem of industrial discipline was debated by the Indian Labour
Conference held in 1957. A code of discipline drafted by the sub-committee was duly
ractified by the Central Organisations of Workers and employees at the 16t session of
the Indian Labour Conference in March 1958 and it became operative from 1st June,
1958. The code is based on following principles :-
i) There should be no strike or lockout without proper notice.
ii) No unilateral action should be taken in connection with any industrial matter.
iii) There should be no recourse to go slow tactics.
iv) No deliberate damage should be caused to a plant or property.
v) Acts of violence, intimidation, coercia or instigation should not be resoted to.
vi) The existing machinery for settlement of disputes should be utilised.
vii) Awards and agreements should be speedily implemented.
viii) Any action which disturbs cordial industrial relations should be avoided.
Objectives of the Code :-
The Code of Discipline is intended to achieve the following objectives :-
i) Maintaining peace and order in industry.
ii) Promoting constructive criticism at all levels of management and employees.
iii) Avoiding work stoppages in industry.
iv) Securing the settlement of disputes and grievances by a mutually agreed
procedure and avoiding litigations.
v) Facilitating a free growth of trade unions.
vi) Bringing home to the employees and management the importance of their
recognition of one another’s rights and responsibilities.
vii) Eliminating all forms of consion, initimation and violation of rules, regulations
and procedures governing industrial relations.
Grievance in Industry :-
There are many factors in industry which make a worker unhappy and dejected.
May be his fellow workers are non co-operative or his foreman’s sacrcastic or harsh
remarks or his own personal problems outside the factory or domestic matters.
A well defined grievance procedure is an important element of a sound industrial
relations machinery. The grievance procedure set up by agreement with a union provides
a medium for the workers to transmit his grievance to management in an orderly manner
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h) Lack of regard for collective agreement.
i) Hostility towards a labour union.
j) Autocratic leadership style of supervisors.
(ii) Grievances resulting from Working Conditions :-
a) Unrealistic.
b) Non-availability of proper tools, machines and equipment for doing the
job.
c) Tight production standards.
d) Bad physical conditions of workplace.
e) Poor relationship with the supervisor.
f) Negative approach to discipline.
iii) Grievances resulting from Personal Factors
a) Narrow attitude.
b) Over-ambition.
c) Egoistic personality.
Handling of Grievances
Grievances are symptoms of conflicts in enterprise. So they should be handled
very promptly and efficiently. Coping with grievances forms and important part of
manager’s job. The manner in which he deals with grievances determines his efficiency
in dealing with the subordinates. A manager is successful if he is able to build a team of
satisfied workers by removing their grievances. While dealing with grievances of
subordinats, it is necessary to keep in mind the following points :-
i) A grievance may or may not be real.
ii) Grievances may arise out of not one cause, but multifarious causes.
iii) Every individual does not give expression to his grievances.
For the purpose of handling grievances efficiently, it is necessary to find and
analyse the grievances of the subordinates. If a grievance is found to be genuine or
real, the corrective action should be taken immediately. But if the grievance arises due
to imagination or disturbed frame of mind of the worker, then it is necessary to explain
and clear up the matter. Before dealing with the grievances, their causes must be
diagnosed. But when the grievances are not given expression by the subordinates, it is
manager’s job to detect the possible grievances and their causes. He may realise the
existence of grievances because of high labour turnover, high rate of absenteeism and
poor quality of work. These problems will go on multiplying if the causes of grievances
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(ii) Step-ladder Procedure :- Under this procedure, the aggrieved employee has
to proceed step by step in getting his grievance heard and redressed as shown in
Fig. 1. Firstly, he has to present his grievance in writing to his supervisor or
foreman. If he is not satisfied with his decision, he may go to the head of the
department. There may be a joint grievance committee after the decision of the
head of the department is not acceptable to the employee. If the committee
also fails to redrss his grievance, the matter may be referred to the Chief
Executive. The grievance procedure will be said to be exhausted if the Chief
Executive is also not able to redress the grievance. The workers should not take
any action against the management (such as going to the labour union or labour
court) until the whole grievance procedure has been exhausted.
Step No. 1
Filling of Written
Grievance
Step No. 2
Supervisor or
Foreman
Step No. 3
Department
Step No. 4
Joint
Grievance
Committee
Step No. 5
Chief Executive
Step No. 6
Voluntary Arbitration
S E T T L E M E N T
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Second Step. If no solution is found at the first step, the aggrieved worker can
take his grievance to the head of the department who has to give his decision within
three days.
Third Step. If the worker concerned is not satisfid with the decision of the
departmental head, he can take the grievance to the Grievance Committee. Grievance
Committee must make its recommendations to the manager within seven days. The
final decision of the management on the report of the Grievance Committee must be
communicated to the concerned worker within three days of the receipt of the report.
An appeal for revision of the final decision can be made by the aggrieved worker
if h is not satisfied with it. The management must communicate its decision to the
appellant worker with in seven days.
Fourth Step. If the grievance still remains unsettled, the case may be referred
to voluntary arbitration.
Two points should be noted. Firstly, a time limit has been put at every stage of
the procedure. This is in recognition of the fact that justice delayed is justice denied.
Seondly, throughout the process of grievance procedure, the aggrieved worker is
expected not to take resort to any direct action, the order against which representation
is mae must be complied with and the conciliation machinery will be resorted to only
after the final decision of the management fails to satisfy the aggrieved worker.
Disciplinary Procedure
There is a strong case of a fair disciplinary procedure in any organisation to
avoid arbitrary action against the workers. The misconduct on the part of the worker
must be proved before any action is taken against him. Before that, the worker must be
given an opportunity to defend himself against the charges levelled against him.
The essential steps in a sound disciplinary procedure are as follows :-
1. Preliminary Enquiry
When an employee is alleged to have ommitted any of the offences
detailed in the Standing Orders, or service rules or under common law the
foreman or department manager must make a report to the Personnel Manager,
indicating the action recommended. If the Personnel Manager considers that
preliminary enquiry is necessary, he must depute same responsible officer of
the company to enquire into the misconduct. The enquiry officer must examine
both sides of the case with emphasis on the employee’s side and forward his
report to the Personnel Manager. If there is a prima facie case for a charge-
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Normally, the standing orders of a company provide for the details of holding a
domestic enquiry. But in case such details are not available, domestic enquiry
is conducted by a senior officer of the company. Even a lawyer or an outsier
may hold the enquiry if the management so decides. However, it is necessary to
ensure that the person who conducts the domestic enquiry should be unbiased.
A person who has some bias in the matter is not a fit person to conduct the
enquiry.
Normally, the domestic enquiry should be held in the presence of the
accused. It must be held in the company’s premises and as far as possible during
working hours. If the accused is illiterate or less educated, the charge sheet
must be read out and explained to him in the language he understands. The law
does not permit a non-employee at the enquiry nor does it permit outsie
interference. Examination and cross-examination should be free and proper
and all documents are open to be seen by the parties. In case the accused does
not turn up before the enquiry officer without any notice or reasonable cause or
refuses to participate in the enquiry, then it could be settled ex parte.
The decision should be taken keeping in view the gravity of misconduct.
However, the past service record of the accused and gravity of the misconduct
must be taken into consideration before dismissing or discharging an employee
by way of punishment. The enquiry proceedings with depositions of the parties
and witnesses must be recorded, signed by all present at the enquiry and filed in
the employee’s folder along with the findings of the enquiry and record of
punishment, if any, awarded. All witnesses must sign their depositions, duly
witnessed by another and countersigned by the enquiry office. If the accused or
any of the witnesses refuses to sign their depositions, the enquiry officer must
record it accordingly.
If, as a result of the charge-sheet enquiry, the accused is found not guilty,
he must be informed in writing, that he is not guilty and that the charge-sheet
stands withdrawn. In case, the accused is found guilty and some punishment is
awarded to him, this fact must be conveyed to him as expeditiously as possible.
4. Punishment
The Standing Orders or Service Rules of the company must provide that
any worker who is adjudged by the manager to be guilty of misconduct is liable
to be dismissed without notice, or dischared, or suspended from work with loss
of pay for a specified period, or fined, or warned, depending on the seriousness
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denial of work teporarily.
Procedural Suspension
It is not considered as a punishment. It is made when disciplinary action is
initiated or about to be initiated against a person for any misconduct which may warrant
any major penalty like discharge or dismissal. The accused worker is suspended if his
presence at work is not considered desirable for fear of his tampering with the records
of any other evidence or the enquiry by itself. The delinquent employee is also
suspended in the interst of discipline and good order in the establishment and in all
cases where the act of misconduct complained of is grave and serious. Generally, the
suspension order will be issued alongwith the letter of charge, but if the management
thinks it necessary, the employee may be suspended even befor issuing the charge-
sheet pending further disciplinary proceedings. After suspension the worker is paid a
subsistenc allowance equal to one-half of the gross wages for the first ninety days and
three-fourths of the wages beyond ninety days.
Q. Explain Collective Bargaining & Negotiation.
Ans. The term ‘Collective Bargaining’ broadly denotes group bargaining as opposed
to individual Bargaining about wages and salaries and conditions of work.
The term collective bargaining also denotes a procedure under which two parties,
namely, workers and management, reach an agreement about wage rats and basic
conditions of employment.
The Concept of Collective Bargaining :-
Collective Bargaining is the process in which representativs of two groups, i.e.
employers and employees meet and attempt to negotiate an agreement which specifies
the nature of future relationship between the two. According to Beach, “Collective
Bargaining is concerned with the relations between unions representing employees
and employers (or their representatives). It involves the process of union organisation
of employees, negotiation, administration and interpretation of collective agreements
covering wages, hours of work, and other conditions of employment, engaging in
concerted economic action and dispute settlement procedures.
Collective Bargaining is a mode of fixing the terms of employment by means
of bargaining between organised body of employees and an employer or association of
employers acting usually through authorised agents. According to a guide for union
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5. It is based on give and take approach and not in take or have approach.
6. It is an attempt in achieving and maintaining discipline in industry.
7. It is an effective step in promoting industrial jurisprudence.
Significance of Collective Bargaining
Collective Bargaining not only includes negotiation, administration and
enforcement of the written contracts between the employees and the employers, but
also includes the process of resolving labour-mgmt conflicts. Thus, collective
bargaining is legally and socially sanctioned way of regulating in the public interest the
forces of power and influence interest in organised labour management groups.
Collective Bargaining helps to promote cooperation and mutual understanding between
the workers and the management. According to National Commsion of Labour, “The
best jurisdiction for collective bargaining is tht it is a system based on bipartite
agreements and as such superior to any arrangement involving third party intervention
in matters which essentially concern employers and workers”. Collective Bargaining
is, in fact, a lasting solution to the problem of industrial relations.
Importance of Employers
1. Collective Bargaining develops a sense of self-respect and responsibility among
the employees.
2. Collective bargainng increases the strength of workers. Their bargaining capacity
as a group increases.
3. Collective Bargaining inceases the morale and productivity of employers.
4. Effective collective bargaining machinery strengthens the trade union movement.
Importance to Employers
i) The workers feel motivated as they can talk to the employers or various matters
and bargain for higher benefits. As a result, their productivity increases.
ii) It is easier for the management to resolve issues at the bargaining table rather
than taking up complaints of employees individually.
iii) Collective Bargaining promots a sense of job security among the employees
and thereby tends to reduce cost of labour turnover to management, employees
as wll as the society at large.
iv) Collective Bargaining opens up the channels of communication between the
top and the bottom level of the organisation which may be difficult otherwise.
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agent to bring about the social change, i.e., it contributes towards the change in
interaction patterns, values and normative system of the society at large.
Thus, when viewed as a process of social change, collective bargaining
emcompasses more than the direct clash between employers and unions. It
refers to the rise in the political and social power achieved by workers and their
oganisations. With gradual rise in social and political power, workers gain greater
recognition and ability to assert against employers. By presenting a united front
commanding social and political recognition and capacities, they compel the
employers to bargain with them and develop novel interaction patterns and values.
The contribution of collective bargaining towards the process of social
change brings to light two important implications :
(i) Collective bargaining is not an abstract class struggle, but is rathr
pragmatic and concrete. The inferior class does not attempt to abolish the old
ruling class, but merely to become equal with it. It aims to acquire a large
measure of economic and political control over crucial decisions in the areas
of its most immediate interest, and to be recognised in other areas of decision-
making.
(ii) The process of change initiated by collective bargaining also
functions as a source of stability in changing environment. Wage earners have
enhanced their social and economic position and at the same time, management
has retained a large measure of power dignity. These gains were not registered
in one great revolutionary change, but rathr step by step, with each clash between
opposing parties settld with a new compromise somewhat different from previous
settlement. Thus, collective bargaining accomplishes long-run stability on
the basis of day by day adjustments in relations between management and
labour. As such, it encompasses a great prerequisite for social change that it
permits groups which are rising in power and prestige to appraoch their new
levels of authority, and at the same time permits groups which are declining to
retain their dignity and respect.
2. Peace Treaty or Temporary Truce :- Collective bargaining may be viewed as
a struggle between two opposing powers which is smoothene by the
compromises. Compromise represents a state to which each side is prepared
to descend from the original stand (with neither party fully satisfie). This
receding from original position may come about in two major ways :
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It establishes rules which define and restrict the traditonal authority exercised
by management.
Procedure of Negotiation and Collective Bargaining
Negotiation between th parties to industrial relations, viz., management and union
is an mportant aspect of collective bargaining. It is a process through which attempts
are made to arrive at on agreement on wages and other economic benefits and other
terms and conditions of service. It naturally involves proposals and suggstions made
by the management and the union followed by discussions between them. During
discussions, counter-proposals followed by arguments come up. The primary object
of the discussion is to iron out differences which, in the beginning, may appear to be
vast. Frank discussions, mutual beliefs and attempts to appreciate the other party’s
point of view ae essential for any fruitful negotiations. It should be noted that there is
no legal compulsion on either employer or employee to negotiate in the event of a
dispute. If the two parties are mentally prepared and have a desire to meet and settle an
issue, the desired result can be achieved.
When in an organistion, the union raises some issue or demand, the Industrial
Relations Managr would do preliminary work on it and have preliminary discussions
with the representatives of the union and initiate necessary actions and convey the
results of such discussions to the top management. In this way, somtimes, minor issues
are further negotiations and both the parties come prepared to put forth their points of
view to make a dignified settlement.
It is usually thought that from the management’s side, negotiations should not
be left in the hands of only the industril relations officer but a team of senior managers,
since more than one union representatives normally sit in such discussions. The
industrial relations officer, as one of the team, may not have the authority to take
decisions but he may be in a better strategic posiion than other members of the
negotiating team. He usually has good liasion with the union members and can act as a
bridge between the two groups.
Essentials of Successful Collective Bargaining
Collective bargaining is n institutionalised representative process. It involves
an exercise in graceful retreat from original position - a retret without seeming to
retreat to compromise. As such, it is a complex process involving psychology, politics,
and poker. It is a process of tough-minded economic calculus and horse trading. The
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5. Political Climate. If collective bargaining has to be fully effective, a favourable
political climate must exist. The government must be convinced of bargaining’s
positive contribution. If encouraging attitude of government exists, it does
everything to facilitate bargaining process such as providing exists, it does
everything to facilitate bargaining process such as providing machinery for the
settlement of disputes, mediation and conciliation. However, the role of
governent has to be minimum because collective bargaining is primarily a two-
way process more concerned with micro aspects.
6. Bargainer’s Authority. The procedures must be developed to ensure that
negotiators have full authority to bind their constituents. If bargaining
representatives have to refer constatnly back to their respective organisations,
it makes bargaining process most ridiculous nd ineffective, because parties know
by experience that bargaining team is only a show piece and not the real authority.
Growth of Collective Bargaining
The term ‘collective bargaining’ was coined by Sydney and Beatrice Webb in
1897. They pointed out that while the individual worker in an organised industry makes
a purely individual bargain with the employer, a group of workers in their collective
action tends to bargain on behalf of the entire group.
A bargain is an agreement, and takes at least two to make a bargain. A collective
bargain is an agreement made by or on behalf of a group, and collective bargaining is
therefore the method by whih a group agreement is reached. Under such an all-inclusive
definition, diplomats negotiating treaties, or trustees of a church discussing a mortgage
with the directors of a bank might be said to be bargaining collectively. But as words
have come to be used, the term “collective bargaining” now applis almost exclusively
to relations between working people and those who employ them. The employees
bargain collectively when they or their representatives negotiate with the employers.
Collective bargaining process is not complete as soon as a bargaining is struck between
the employers and the union. It involves execution of the contract also.
The growth of collective bargaining is closely associated with the growth of the
trade unionism is England durng the early years of twentieth century. Collective
bargaining is also an important element of the industrial relations system of the United
States of America.
Collective bargaining may occur at several levels. At the shop-floor level, it
may take place between shop stewards and plant management and is called “workplace
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1. Conditions should be created so that there is a strong, stable and representative
union in every plant.
2. Recognition of the representative union should be provided by law. The majority
union having preferably the support of fifty percent or more workers on payrolls
of the organisation should be recognised by law as the sole bargaining agent for
the purpose of collective bargaining between the labour and the management.
3. Political leadership in trade union movement should be replaced by the internal
worker leadership. There should be proper education of workers for this
purpose.
4. Political leaders should not interfere in the industrial relations. They should
allow the parties to the dispute to arrive at a decision on their own through
collective bargaining.
5. Both the trade unions and managements should have strong fait in collective
bargaining and other peaceful means of settling issue between them.
6. Adjudication should be resorted to only when all other remedies have failed.
For this purpose, law should be suitably amended. Collective bargaining should
be given legal recognition. The mattrs coming under the purview of collective
bargaining should not be ordinarily allowed to be adjudicated.
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Objectives of Workers Participation in Management
Workers participation in management is recommended to achieve the following
objectives :-
1. Increasing productivity for the general benefit of the enterprise, the employees
and the community.
2. Giving employees a better understandin of their role in the working of the
industry and of the process of production.
3. Satisfying the worker’s urge for self-expression.
4. Achieving industrial peace, better relations and increased co-operation in
industry.
5. Development of human personality.
6. Development of leaders from within the industry.
Importance of Worker’s Particiption
Worker’s Participation in management has assumed great importance these days
because of the following advantages :-
1. Reduced Industrial Unrest :- Industrial conflict is a struggle between two
organised groups which ae motivated by the belief that their respective interests
ar engangered by the self-interested behaviour of the other.
2. Reduced Misunderstanding :- Participation helps dispelling employees
misunderstandings about the outlook of management in industry. These
misconceptions would otherwise die hard, and their damaging effect needs no
explanation.
3. Increased Organisation Balance :- If workers are invited to share in
organisational problems, and to work towards commo solutions, a greater degree
of organisational balance occurs because of decreased misunderstanding and
individual and group conflicts.
4. Improved Communicatio :- It is seldom possible for managers to have
knowledge of all alternatives and all consequences related to the decisions which
they must make.
5. Higher Productivity :- Increased productivity is possible only when there
exists fullest co-operation between labour and management. It has been
empirically tested that poor ‘labour management relations’ do not encourage
the workers to contribute more than the minimum desirable to retai their jobs.
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PAGE:- 65
subordinates are able to participate in decision making at all levels of the
enterprise.
Modes of Participation
Participation of workers in management of industrial enterprises is achieved
by the following methods :-
1. Works Committee :- A works committee consists of equal number o
representatives of both employers and workers. It meets frequently for
discussion on common problems of the workers and the management. After
discussion, joint decisions are taken and such decisions are binding on both the
parties. Matters like wage payment, bonus, training, discipline etc. are discussed
in such meetings.
2. Joint Management Council :- Joint consultation involves setting up of joint
committees represented by the workers and the management to discuss and
give suggestions for improvement with regard to matters of mutual interest.
The decisions of such committees are not binding or either party, yet they are
implemented as they are arrivd at by mutual consultations. The subject-matter
of joint consultations includes such problems aras as labour welfare, safety
measures, grievance redressal, training, working laws etc.
3. Collective Bargaining :- It is an industrial relations process in which
employees through their elected leaders participate or equal basis with
management in negotiating labour agreements in administering the agreements
and in redressing grievances of the workers.
4. Co-partnership :- In co-partnership, workers are allowed to purchase shares
of the company and thus become its co-owners. In this way, they can participate
in the management of the company through their elected representatives on the
Board of Directors.
5. Worker-Director :- Should labour association with management result in a
workers representative being given a seat or the board of directors ? Many
trade unions to have themselves pointed out such an idea is allogical. A worker
director would be in a minority and thus his views would carry title weight with
the board. Moreover, the worker director is not properly trained in the
management function. That is why trade unionists wish to maintain then
independent status and this way they can better act as a check on the management.
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4. Clarity of Objectives of Worker’s Participation :- Management and workers
must understnd clearly the objectives participation.
5. Continuity :- Workers participation must be an ‘on-going’ process and should
not b treated as ‘one time’ affair. Workers participation should not be used
merely as a fire-fighting instrument for handling industrial relations problems.
6. Cordial Industrial Relations :- Labour-management relations in the enterprise
should be cordial on at least thre should be no tension in the relations. There
should be no blockage in communication between them.
7. Training in Participation :- For successful participation of workers in
management, it is necessary that the workrs are sufficiently informed about
participation programme in the enterprise and are given proper training in the
field.
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