INDUSTRIAL DISPUTES: are organised protests against existing terms

of employment or conditions of work. According to the Industrial Dispute Act, 1947, an

Industrial dispute means

“Any dispute or difference between employer and employer or between employer and
workmen or between workmen and workmen, which is connected with the employment or
non-employment or terms of employment or with the conditions of labour of any person”

In practice, Industrial dispute mainly refers to the strife between employers and their
employees. An Industrial dispute is not a personal dispute of any one person. It generally
affects a large number of workers’ community having common interests.

Prevention of Industrial Disputes:

The consequences of an Industrial dispute will be harmful to the owners of industries,

workers, economy and the nation as a whole, which results in loss of productivity, profits,
market share and even closure of the plant. Hence, Industrial disputes need to be averted by
all means.

Prevention of Industrial disputes is a pro-active approach in which an organisation undertakes

various actions through which the occurrence of Industrial disputes is prevented. Like the old
saying goes, “prevention is better then cure”.

1. Model Standing Orders: Standing orders define and regulate terms and conditions of
employment and bring about uniformity in them. They also specify the duties and
responsibilities of both employers and employees thereby regulating standards of their
behaviour. Therefore, standing orders can be a good basis for maintaining harmonious
relations between employees and employers.
Under Industrial Dispute Act, 1947, every factory employing 100 workers or more is required
to frame standing orders in consultation with the workers. These orders must be certified and
displayed properly by the employer for the information of the workers.

2. Code of Industrial discipline: The code of Industrial discipline defines duties and
responsibilities of employers and workers. The objectives of the code are:

• To secure settlement of disputes by negotiation, conciliation and voluntary arbitration.

• To eliminate all forms of coercion, intimidation and violence.
• To maintain discipline in the industry.
• To avoid work stoppage.
• To promote constructive co-operation between the parties concerned at all levels.

3. Works Committee: Every industrial undertaking employing 100 or more workers is under
an obligation to set up a works committee consisting equal number of representatives of
employer and employees. The main purpose of such committees is to promote industrial
relations. According to Indian Labour Conference work committees are concerned with:-

• Administration of welfare & fine funds.

• Educational and recreational activities.
• Safety and accident prevention
• Occupational diseases and protective equipment.
• Conditions of work such as ventilation, lightening, temperature & sanitation including
latrines and urinals.
• Amenities such as drinking water canteen, dining rooms, medical & health services.

The following items are excluded from the preview of the work committees.

• Wages and allowances

• Profit sharing and bonus
• Programs of planning and development
• Retirement benefits
• PF and gratuity
• Housing and transport schemes
• Incentive schemes
• Retirement and layoff

4. Joint Management Councils: Just to make a start in labour participation in management,

the govt: suggested in its Industrial Resolution 1956 to set up joint management councils. It
consists of equal numbers of workers and employers (minimum 6 & maximum 12) decisions
of the JMC should be unanimous and should be implemented without any delay. JMC
members should be given proper training. JMC should look after 3 main areas:-

1. information sharing
2. consultative
3. administrative

Representation of workers to the JMCs should be based on the nomination by the

representation.
Objectives

• Satisfy the psychological needs of workers

• Improve the welfare measures
• Increase workers efficiency
• Improve the relation and association between workers, managers and promoters.

JMC deals with matters like:-

• Employee welfare
• Apprenticeship scheme

5. Suggestion Schemes:

6. Joint Councils: Joint Councils are set up for the whole unit and deals with matters
relating optimum production and efficiency and the fixation of productivity norms for man
and machine for the as a whole. in every industrial unit employing 500 and more workers
there should be a Joint Council for the whole unit.

Features

• Members of the council must be actually engaged in the unit.

• The chief executive of the unit will be the chairman of the council and vice chairman
will be nominated by worker members.
• Term of the council will be two years.
• JC shall meet at once in a quarter.
• Decision of the council will be based on consensus and not on voting.

Functions

• Optimum use of raw materials and quality of finished products

• Optimum production, efficiency and function of productivity norms of man and
machine as a whole.
• Preparation of schedules of working hours and of holidays.
• Adequate facilitates for training.
• Rewards for valuable and creative suggestions received from workers.

7. Collective Bargaining: Collective Bargaining is a process in which the representatives of

the employer and of the employees meet and attempt to negotiate a contract governing the
employer-employee-union relationships. Collective Bargaining involves discussion and
negotiation between two groups as to the terms and conditions of employment.

8. Labour welfare officer: The factories Act, 1948 provides for the appointment of a labour
welfare officer in every factory employing 500 or more workers. The officer looks after all
facilities in the factory provided for the health, safety and welfare of workers. He maintains
liaison with both the employer and the workers, thereby serving as a communication link and
contributing towards healthy industrial relations through proper administration of standing
orders, grievance procedure etc.
9. Tripartite bodies: Several tripartite bodies have been constituted at central, national and
state levels. The India labour conference, standing labour committees, Wage Boards and
Industries Committees operate at the central level. At the state level, State Labour Advisory
Boards have been set up. All these bodies play an important role in reaching agreements on
various labour-related issues. The recommendations given by these bodies are however
advisory in nature and not statutory.

Machinery for settlement of Industrial Disputes:

1. Conciliation: Conciliation refers to the process by which representatives of employees and

employers are brought together before a third party with a view to discuss, reconcile their
differences and arrive at an agreement through mutual consent. The third party acts as a
facilitator in this process. Conciliation is a type of state intervention in settling the Industrial
Disputes. The Industrial Disputes Act empowers the Central & State governments to appoint
conciliation officers and a Board of Conciliation as and when the situation demands.

Conciliation Officer: The appropriate government may, by notification in the official gazette,
appoint such number of persons as it thinks fit to be the conciliation officer. The duties of a
conciliation officer are:

a) To hold conciliation proceedings with a view to arrive at amicable settlement between

the parties concerned.

b) To investigate the dispute in order to bring about the settlement between the parties
concerned.

c) To send a report and memorandum of settlement to the appropriate government.

d) To send a report to the government stating forth the steps taken by him in case no
settlement has been reached at.

The conciliation officer however has no power to force a settlement. He can only persuade
and assist the parties to reach an agreement. The Industrial Disputes Act prohibits strikes and
lockouts during that time when the conciliation proceedings are in progress.

2. Arbitration: A process in which a neutral third party listens to the disputing parties,
gathers information about the dispute, and then takes a decision which is binding on both the
parties. The conciliator simply assists the parties to come to a settlement, whereas the
arbitrator listens to both the parties and then gives his judgement.

Advantages of Arbitration:

• It is established by the parties themselves and therefore both parties have good faith in
the arbitration process.
• The process in informal and flexible in nature.
• It is based on mutual consent of the parties and therefore helps in building healthy
Industrial Relations.

Disadvantages:
 • Delay often occurs in settlement of disputes.
• Arbitration is an expensive procedure and the expenses are to be shared by the labour
and the management.
• Judgement can become arbitrary when the arbitrator is incompetent or biased.

There are two types of arbitration:

• Voluntary Arbitration: In voluntary arbitration the arbitrator is appointed by both

the parties through mutual consent and the arbitrator acts only when the dispute is
referred to him.
• Compulsory Arbitration: Implies that the parties are required to refer the dispute to
the arbitrator whether they like him or not. Usually, when the parties fail to arrive at a
settlement voluntarily, or when there is some other strong reason, the appropriate
government can force the parties to refer the dispute to an arbitrator.

3. Adjudication: Adjudication is the ultimate legal remedy for settlement of Industrial

Dispute. Adjudication means intervention of a legal authority appointed by the government to
make a settlement which is binding on both the parties. In other words adjudication means a
mandatory settlement of an Industrial dispute by a labour court or a tribunal. For the purpose
of adjudication, the Industrial Disputes Act provides a 3-tier machinery:

• Labour court
• Industrial Tribunal
• National Tribunal

a) Labour Court: The appropriate government may, by notification in the official gazette
constitute one or more labour courts for adjudication of Industrial disputes relating to any
matters specified in the second schedule of Industrial Disputes Act. They are:

• Dismissal or discharge or grant of relief to workmen wrongfully dismissed.

• Illegality or otherwise of a strike or lockout.
• Withdrawal of any customary concession or privileges.

Where an Industrial dispute has been referred to a labour court for adjudication, it shall hold
its proceedings expeditiously and shall, within the period specified in the order referring such
a dispute, submit its report to the appropriate government.

b) Industrial Tribunal: The appropriate government may, by notification in the official

gazette, constitute one or more Industrial Tribunals for the adjudication of Industrial disputes
relating to the following matters:

• Wages
• Compensatory and other allowances
• Hours of work and rest intervals
• Leave with wages and holidays
• Bonus, profit-sharing, PF etc.
• Rules of discipline
• Retrenchment of workmen
• Working shifts other than in accordance with standing orders
It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submit its
report to the appropriate government within the specified time.

c) National Tribunal: The central government may, by notification in the official gazette,
constitute one or more National Tribunals for the adjudication of Industrial Disputes in

• Matters of National importance

• Matters which are of a nature such that industries in more than one state are likely to
be interested in, or are affected by the outcome of the dispute.

It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its
report to the central government within the stipulated time.

AN ARTICLE ON ANSOFF MATRIX

The article focuses on the main aspects of Ansoff analysis. The four strategic options

entailed in the Ansoff matrix are discussed along with the risks inherent with each option.

The article includes tips for students and analysts on how to write a good Ansoff analysis

for a firm. Moreover, sources of findings information for Ansoff analysis have been

discussed. The limitations of Ansoff analysis as a strategic model have also been

discussed. Introduction The Ansoff matrix presents the product and market choices available
to an organisation.

Herein markets may be defined as customers, and products as items sold to customers

(Lynch, 2003). The Ansoff matrix is also referred to as the market/product matrix in

some texts. Some texts refer to the market options matrix, which involves examining the

options available to the organisation from a broader perspective. The market options

matrix is different from Ansoff matrix in the sense that it not only presents the options of

launching new products and moving into new markets, but also involves exploration of

possibilities of withdrawing from certain markets and moving into unrelated markets

(Lynch, 2003). Ansoff matrix is a useful framework for looking at possible strategies to

reduce the gap between where the company may be without a change in strategy and

where the company aspires to be (Proctor, 1997).

Main aspects of Ansoff Analysis The well known tool of Ansoff matrix was published first in
the Harvard Business

Review (Ansoff, 1957). It was consequently published in Ansoff’s book on ‘Corporate

Strategy’ in 1965 (Kippenberger, 1988). Organisations have to choose between the

options that are available to them, and in the simplest form, organisations make the

choice between for example, taking an option and not taking it. Choice is at the heart of

the strategy formulation process for if there were no choices, there will be little need to

think about strategy. According to Macmillan et al (2000), “choice and strategic choice

refer to the process of selecting one option for implementation.” Organisations in their

usual course exercise the option relating to which products or services they may offer in

which markets (Macmillan et al, 2000).

The Ansoff matrix provides the basis for an organisation’s objective setting process and

sets the foundation of directional policy for its future (Bennett, 1994). The Ansoff matrix

is used as a model for setting objectives along with other models like Porter matrix, BCG,

DPM matrix and Gap analysis etc. The Ansoff matrix is also used in marketing audits (Li

et al, 1999). The Ansoff matrix entails four possible product/market combinations:

Market penetration, product development, market development and diversification

(Ansoff 1957, 1989). The four strategies entailed in the matrix are elaborated below.

Ansoff Product-Market Growth Matrix

Source: Ansoff (1957, 1989) Market penetration Market penetration occurs when a company
penetrates a market with its current products.

It is important to note that the market penetration strategy begins with the existing

customers of the organisation. This strategy is used by companies in order to increase

sales without drifting from the original product-market strategy (Ansoff, 1957).

Companies often penetrate markets in one of three ways: by gaining competitors

customers, improving the product quality or level of service, attracting non-users of the
products or convincing current customers to use more of the company’s product, with the

use of marketing communications tools like advertising etc. (Ansoff, 1989, Lynch, 2003).

This strategy is important for businesses because retaining existing customers is cheaper

than attracting new ones, which is why companies like BMW and Toyota (Lynch, 2003),

and banks like HSBC engage in relationship marketing activities to retain their high

lifetime value customers.

Product development Another strategic option for an organisation is to develop new products.
Product

development occurs when a company develops new products catering to the same

market. Note that product development refers to significant new product developments

and not minor changes in an existing product of the firm. The reasons that justify the use

of this strategy include one or more of the following: to utilize of excess production

capacity, counter competitive entry, maintain the company’s reputation as a product

innovator, exploit new technology, and to protect overall market share (Lynch, 2003).

Often one such strategy moves the company into markets and towards customers that are

currently not being catered for.

Market development When a company follows the market development strategy, it moves
beyond its

immediate customer base towards attracting new customers for its existing products. This

strategy often involves the sale of existing products in new international markets. This

may entail exploration of new segments of a market, new uses for the company’s

products and services, or new geographical areas in order to entice new customers

(Lynch, 2003). For example, Arm & Hammer was able to attract new customers when

existing consumers identified new uses of their baking soda (Christensen et al, 2005).

Diversification Diversification strategy is distinct in the sense that when a company

diversifies, it

essentially moves out of its current products and markets into new areas. It is important to
note that diversification may be into related and unrelated areas. Related diversification

may be in the form of backward, forward, and horizontal integration. Backward

integration takes place when the company extends its activities towards its inputs such as

suppliers of raw materials etc. in the same business. Forward integration differs from

backward integration, in that the company extends its activities towards its outputs such

as distribution etc. in the same business. Horizontal integration takes place when a

company moves into businesses that are related to its existing activities (Lynch, 2003;

Macmillan et al, 2000).

It is important to note that even unrelated diversification often has some synergy with the

original business of the company. The risk of one such manoeuvre is that detailed

knowledge of the key success factors may be limited to the company (Lynch, 2003).

While diversified businesses seem to grow faster in cases where diversification is

unrelated, it is crucial to note that the track record of diversification remains poor as in

many cases diversifications have been divested (Porter, 1987). Scholars have argued that

related diversification is generally more profitable (Macmillan et al, 2000; Pearson,

1999). Therefore, diversification is a high-risk strategy as it involves taking a step into a

territory where the parameters are unknown to the company. The risks of diversification

can be minimised by moving into related markets (Ansoff, 1989).

Depositary receipts (DRs) :are certificates that represent an ownership

interest in the ordinary shares of stock of a company, but that are marketed outside of the
company’s home country to increase its visibility in the world market and to access a greater
amount of investment capital in other countries. Depositary receipts are structured to
resemble typical stocks on the exchanges that they trade so that foreigners can buy an interest
in the company without worrying about differences in currency, accounting practices, or
language barriers, or be concerned about the other risks in investing in foreign stock directly.
American depositary receipts (ADRs) were the 1st depositary receipts issued—JP Morgan
issued the 1st ADR in 1927. ADRs allowed companies domiciled outside of the United States
to tap the United States capital markets. ADRs were structured to resemble other stocks on
the American exchanges with comparable prices per share, shareholder notifications in
English, and the use of United States currency for the sale and purchase of ADRs and for
dividend payments.

A global depositary receipt (GDR) is similar to an ADR, but is a depositary receipt sold
outside of the United States and outside of the home country of the issuing company. Most
GDRs are, regardless of the geographic market, denominated in United States dollars,
although some trade in Euros or British sterling. There are more than 900 GDR’s listed on
exchanges worldwide, with more than 2,100 issuers from 80 countries.

Although ADRs were the most prevalent form of depositary receipts, the number of GDRs
has recently surpassed ADRs because of the lower expense and time savings in issuing
GDRs, especially on the London and Luxembourg stock exchanges

The Global Depositary Receipt As A Financial Instrument

A GDR is issued and administered by a depositary bank for the corporate issuer. The
depositary bank is usually located, or has branches, in the countries in which the GDR will be
traded. The largest depositary banks in the United States are JP Morgan, the Bank of New
York Mellon, and Citibank.A GDR is based on a Deposit Agreement between the depositary
bank and the corporate issuer, and specifies the duties and rights of each party, both to the
other party and to the investors. Provisions include setting record dates, voting the issuer’s
underlying shares, depositing the issuer’s shares in the custodian bank, the sharing of fees,
and the execution and delivery or the transfer and the surrender of the GDR shares.

A separate custodian bank holds the company shares that underlie the GDR. The depositary
bank buys the company shares and deposits the shares in the custodian bank, then issues the
GDRs representing an ownership interest in the shares. The DR shares actually bought or
sold are called depositary shares.

The custodian bank is located in the home country of the issuer and holds the underlying
corporate shares of the GDR for safekeeping. The custodian bank is generally selected by the
depositary bank rather than the issuer, and collects and remits dividends and forwards notices
received from the issuer to the depositary bank, which then sends them to the GDR holders.
The custodian bank also increases or decreases the number of company shares held per
instructions from the depositary bank.The voting provisions in most deposit agreements
stipulate that the depositary bank will vote the shares of a GDR holder according to his
instructions; otherwise, without instructions, the depositary bank will not vote the shares.

GDR Advantages And Disadvantages

GDRs, like ADRs, allow investors to invest in foreign companies without worrying about
foreign trading practices, different laws, accounting rules, or cross-border transactions. GDRs
offer most of the same corporate rights, especially voting rights, to the holders of GDRs that
investors of the underlying securities enjoy.

Other benefits include easier trading, the payment of dividends in the GDR currency, which
is usually the United States dollar (USD), and corporate notifications, such as shareholders’
meetings and rights offerings, are in English. Another major benefit to GDRs is that
institutional investors can buy them, even when they may be restricted by law or investment
objective from buying shares of foreign companies.

GDRs also overcome limits on restrictions on foreign ownership or the movement of capital
that may be imposed by the country of the corporate issuer, avoids risky settlement
procedures, and eliminates local or transfer taxes that would otherwise be due if the
company’s shares were bought or sold directly. There are also no foreign custody fees, which
can range from 10 to 35 basis points per year for foreign stock bought directly.

GDRs are liquid because the supply and demand can be regulated by creating or canceling
GDR shares.GDRs do, however, have foreign exchange risk if the currency of the issuer is
different from the currency of the GDR, which is usually USD.

The main benefit to GDR issuance to the company is increased visibility in the target
markets, which usually garners increased research coverage in the new markets; a larger and
more diverse shareholder base; and the ability to raise more capital in international markets.

GDR Market

As derivatives, depositary receipts can be created or canceled depending on supply and

demand. When shares are created, more corporate stock of the issuer is purchased and placed
in the custodian bank in the account of the depositary bank, which then issues new GDRs
based on the newly acquired shares. When shares are canceled, the investor turns in the
shares to the depositary bank, which then cancels the GDRs and instructs the custodian bank
to transfer the shares to the GDR investor. The ability to create or cancel depositary shares
keeps the depositary share price in line with the corporate stock price, since any differences
will be eliminated through arbitrage.

The price of a GDR primarily depends on its depositary ratio (aka DR ratio), which is the
number of GDRs to the underlying shares, which can range widely depending on how the
GDR is priced in relation to the underlying shares; 1 GDR may represent an ownership
interest in many shares of corporate stock or fractional shares, depending on whether the
GDR is priced higher or lower than corporate shares.

Most GDRs are priced so that they are competitive with shares of like companies trading on
the same exchanges as the GDRs. Typically, GDR prices range from $7 - $20. If the GDR
price moves too far from the optimum range, more GDRs will either be created or canceled to
bring the GDR price back within the optimum range determined by the depositary bank.
Hence, more GDRs will be created to meet increasing demand or more will be canceled if
demand is lacking or the price of the underlying company shares rises significantly.

Most of the factors governing GDR prices are the same that affects stocks: company
fundamentals and track record, relative valuations and analysts’ recommendations, and
market conditions. The international status of the company is also a major factor.
On most exchanges, GDRs trade just like stocks, and also have a T+3 settlement time in most
jurisdictions, where a trade must be settled within 3 business days of the trading exchange.

The exchanges on which the GDR trades are chosen by the company. Currently, the stock
exchanges trading GDRs are the:

London Stock Exchange

Luxembourg Stock Exchange

NASDAQ Dubai

Singapore Stock Exchange

Hong Kong Stock Exchange

Companies choose a particular exchange because it feels the investors of the exchange’s
country know the company better, because the country has a larger investor base for
international issues, or because the company’s peers are represented on the exchange. Most
GDRs trade on the London or Luxembourg exchanges because they were the 1st to list GDRs
and because it is cheaper and faster to issue a GDR for those exchanges.

Many GDR issuers also issue privately placed ADRs to tap institutional investors in the
United States. The market for a GDR program is broadened by including a 144A private
placement offering to Qualified Institutional Investors in the United States. An offering based
on SEC Rule 144A eliminates the need to register the offering under United States security
laws, thus saving both time and expense. However, a 144A offering must, under Rule 12g3-
2(b), provide a home country disclosure in English to the SEC or the information must be
posted on the company’s website.

The Details Of A GDR Purchase By An Investor

An investor calls her broker to buy GDRs for a particular company.

The broker fills the order by either buying the GDRs on any of the exchanges that it trades, or
by buying ordinary company shares in the home market of the company by using a broker in
the issuer's country. The foreign broker then delivers the shares to the custodian bank.

The investor’s broker notifies the depositary bank that ordinary shares have been purchased
in the issuer's market and will be delivered to the custodian bank and requests depositary
shares to be issued in the investor’s account.

The custodian notifies the depositary bank that the shares have been credited to the depositary
bank’s account.

The depositary bank notifies the investor’s broker that the GDRs have been delivered.The
broker then debits the account of the investor for the GDR issuance fee.
The Details Of A GDR Sale By An Investor

An investor instructs his broker to sell his GDRs. The investor must deliver the shares within
3 business days if the shares are not in the street name of the broker.

The broker can either sell the shares on the exchanges where the GDR trades, or the GDRs
can be canceled, and converted into the ordinary shares of the issuing company.

If the broker sells the shares on an exchange, then the broker uses the services of a broker in
the issuer's market.

If, instead, the shares are canceled, then the broker will deliver the shares to the depositary
bank for cancellation and provide instructions for the delivery of the ordinary shares of the
company issuer. The investor pays the cancelation fees and any other applicable fees.

The depositary bank instructs the custodian bank to deliver the ordinary shares to the
investor’s broker, who then credits the account of its customer.

Technical Notes

GDRs issued by a United States depositary bank are issued pursuant to Regulation S (Reg S)
of the Securities Act of 1933.

A GDR certificate is not delivered to the GDR holder, but is based on a master certificate
held by a Common Depositary for clearing purposes.

Most depositary receipts (DRs) are held in the street name of a bank or broker in a securities
depositary institution, such as the Depositary Trust Company (DTC), Euroclear, or
Clearstream, which expedites the trading and settlement of DR trades for the beneficial
interest of the owners. The beneficial DR owners are the owners who receive the actual
benefits of holding a depositary receipt, such as the capital gains from trading shares,
dividends, and voting rights.

Most GDR programs require that the issuing company notify the relevant exchanges of any
information that may cause the underlying shares to greatly change in price

Say's Law

The equation of the previous section, that net borrowing must equal zero, indicates that
various parts of the economy are connected, though it does not tell us a great deal about the
connection. Another, more flexible way of illustrating the connection is to use an insight from
general equilibrium theory. Key elements from this approach date from the early 19th
century, where they appear as Say's Law. Though these ideas are named after French
economist Jean Baptiste Say (1767-1832), they were developed by several economists in
addition to Say.

When economists study the work of earlier economists, they often have disputes about what
the earlier economists really meant. Thus there are shelves of books and articles about What
Marx Really Meant, and the number about What Keynes Really Meant is also substantial.
The dispute about What Say's Law Really Means is far smaller, but it has yielded a number
of positions. A reason that these controversies can exist is that writers are sometimes
ambiguous in what they say, and their positions can be interpreted in a number of ways. The
following interpretation of Say's Law is not the only possible interpretation.

Although the popular expression of Say's Law is "Supply creates its own demand," this
quotation does not appear in Say's writings nor in the writings of the other economists of his
time. The "law" was developed at a time when economists had begun to notice that the
economic system could be subject to "crises," periods that today we call recessions. They did
not have the economic statistics that we now have to identify these periods, but traders and
merchants were aware of them through increased bankruptcies, slower trade, an increase in
beggars, and sometimes runs on banks.

The question of the nature of these crises, their causes, and their relationship to the economic
system became a topic of debate. The major figure on one side of the debate was Thomas
Malthus, better known for his theory of population. He argued that crises were a result of a
"general glut" of goods. The production of goods could outrun the ability or desire of people
to purchase these goods, and it was this oversupply or under consumption that led to an
economic crisis.

On the other side of the debate were David Ricardo, James and John Stuart Mill, and Say.
Those ideas that are called Say's Law were developed by all of them in their attempt to show
that the under consumptionist thesis was wrong.

Say's Law can be illustrated with a three-person, three-commodity, barter economy. Let our
three persons be Crusoe, who is a fisherman, Friday, who collects coconuts, and Saturday,
who grows bananas. Crusoe will catch fish for two reasons, either because he wants to eat
them himself, or because he wants to trade them for coconuts and bananas. Friday and
Saturday also work either to consume their own output or to trade it. If initially each banana
and coconut is worth one fish, Crusoe may plan to trade five fish for two coconuts and three
bananas. (These numbers are made up and have no special significance.) In the table below
these plans are shown with a positive number indicating that a person plans to supply a
commodity to the marketplace and a negative number indicating that a person plans to
demand a commodity from the marketplace. The numbers show what each wants to do at the
existing set of prices, not necessarily what each actually does.

Planned Sales and Purchases

In a barter world, buying cannot be done unless one sells at the same time, and selling cannot
be done unless one buys at the same time. In a world of barter, the only way one can finance
purchases is by selling, and there is no reason to sell except to finance purchases. It is for this
reason that Say's Law implies that a column should sum to zero. The act of supplying is also
an act of demanding; supply creates its own demand.

The table contains the plans of Friday and Saturday in addition to Crusoe. Notice that adding
each of their columns results in a total of zero. If, however, rows are added, there is no need
to sum to zero, and the rows for fish and bananas do not sum to zero. A non-zero total here
means that plans will not be realized (work out). The +2 in the fish row indicates that at the
original prices there will be an oversupply or surplus of fish. The -2 in the banana row means
that at the original prices there will be an over demand or a shortage of bananas. To make the
markets clear, the price of fish should fall and the price of bananas should rise. In turn, the
new prices will affect future plans. Most economists (but certainly not all) have believed that,
with repeated changes in prices and plans, eventually an equilibrium situation will be reached
so that all rows will sum to zero--that quantity supplied will equal quantity demanded in each
market.

The logic of the table implies that there can be no general glut or oversupply of goods, which
was the point Say and others were arguing. It is possible for "gluts" of particular goods, but
counterbalancing this is a shortage or undersupply of other goods. It is not possible, given the
assumption that columns must sum to zero, for an oversupply (or under demand) of all goods
to exist. This conclusion won the debate in the early 19th century and remained unchallenged
until the 20th century.

The logic of the table also implies that if all markets except one are balanced, then the last
one also must balance. This conclusion was named after Leon Walras and has become known
as Walras' Law. (Say's Law captured in a verbal and intuitive way the spirit of general
equilibrium analysis.) Walras' Law says that if a system has n markets, and n-1 of them are in
equilibrium, then the final nth market must also be in equilibrium. This conclusion is widely
used in macroeconomics (because it says we can ignore a market), and we will appeal to it in
later discussions to justify conclusions

.
However, Say's Law has problems when we leave the world of barter. A
learning organization :is the term given to a company that
facilitates the learning of its members and continuously transforms itself[1].
Learning organizations develop as a result of the pressures facing modern
organizations and enables them to remain competitive in the business
environment[2]. A learning organization has five main features; systems thinking,
personal mastery, mental models, shared vision and team learning[3].

An organisation that learns and encourages learning among its people. It promotes exchange
of information between employees hence creating a more knowledgable workforce. This
produces a very flexible organisation where people will accept and adapt to new ideas and
changes through a shared vision.

Characteristics

A learning organization exhibits five main characteristics: systems thinking, personal

mastery, mental models, a shared vision, and team learning[3].

Systems thinking. The idea of the learning organization developed from a body of work
called systems thinking[4]. This is a conceptual framework that allows people to study
businesses as bounded objects[3]. Learning organizations use this method of thinking when
assessing their company and have information systems that measure the performance of the
organization as a whole and of its various components[4]. Systems thinking states that all the
characteristics must be apparent at once in an organization for it to be a learning
organization[3]. If some of these characteristics is missing then the organization will fall
short of its goal. However O’Keeffe[2] believes that the characteristics of a learning
organization are factors that are gradually acquired, rather than developed simultaneously.

Personal mastery. The commitment by an individual to the process of learning is known as

personal mastery.[3]. There is a competitive advantage for an organization whose workforce
can learn quicker than the workforce of other organizations[6]. Individual learning is
acquired through staff training and development[5], however learning cannot be forced upon
an individual who is not receptive to learning[3]. Research shows that most learning in the
workplace is incidental, rather than the product of formal training[2], therefore it is important
to develop a culture where personal mastery is practiced in daily life[3]. A learning
organization has been described as the sum of individual learning, but there must be
mechanisms for individual learning to be transferred into organizational learning[6].

Mental models. The assumptions held by individuals and organizations are called mental
models.[3]. To become a learning organization, these models must be challenged. Individuals
tend to espouse theories, which are what they intend to follow, and theories-in-use, which are
what they actually do[3][4]. Similarly, organisations tend to have ‘memories’ which preserve
certain behaviours, norms and values[7]. In creating a learning environment it is important to
replace confrontational attitudes with an open culture[5] that promotes inquiry and trust[2].
To achieve this, the learning organization needs mechanisms for locating and assessing
organizational theories of action[4]. Unwanted values need to be discarded in a process called
‘unlearning’[7]. Wang and Ahmed[6] refer to this as ‘triple loop learning.’

Shared vision. The development of a shared vision is important in motivating the staff to
learn, as it creates a common identity that provides focus and energy for learning [3]. The
most successful visions build on the individual visions of the employees at all levels of the
organization[5], thus the creation of a shared vision can be hindered by traditional structures
where the company vision is imposed from above[2]. Therefore, learning organizations tend
to have flat, decentralized organizational structures[4]. The shared vision is often to succeed
against a competitor[6], however Senge[3] states that these are transitory goals and suggests
that there should also be long term goals that are intrinsic within the company.

Team learning. The accumulation of individual learning constitutes Team learning [2]. The
benefit of team or shared learning is that staff grow more quickly[2] and the problem solving
capacity of the organization is improved through better access to knowledge and expertise[5].
Learning organizations have structures that facilitate team learning with features such as
boundary crossing and openness[4]. Team learning requires individuals to engage in dialogue
and discussion[2]; therefore team members must develop open communication, shared
meaning, and shared understanding[2]. Learning organizations typically have excellent
knowledge management structures, allowing creation, acquisition, dissemination, and
implementation of this knowledge in the organization[6].

[edit] Barriers

Even within a learning organization, problems can stall the process of learning or cause it to
regress. Most of them arise from an organization not fully embracing all the necessary facets.
Once these problems can be identified, work can begin on improving them.

Some organizations find it hard to embrace personal mastery because as a concept it is

intangible and the benefits cannot be quantified[3]; , personal mastery can even be seen as a
threat to the organisation. This threat can be real, as Senge[3] points out, that “to empower
people in an unaligned organisation can be counterproductive”. In other words, if individuals
do not engage with a shared vision, personal mastery could be used to advance their own
personal visions. In some organisations a lack of a learning culture can be a barrier to
learning. IAn environment must be created where individuals can share learning without it
being devalued and ignored, so more people can benefit from their knowledge and the
individuals becomes empowered[2]. A learning organization needs to fully accept the
removal of traditional hierarchical structures.[2].
Resistance to learning can occur within a learning organization if there is not sufficient buy-
in at an individual level. This is often encountered with people who feel threatened by change
or believe that they have the most to lose[2]. They are likely to have closed mind sets, and are
not willing to engage with mental models[2]. Unless implemented coherently across the
organization, learning can be viewed as elitist and restricted to senior levels. In that case,
learning will not be viewed as a shared vision[5]. If training and development is compulsory,
it can be viewed as a form of control, rather than as personal development[5]. Learning and
the pursuit of personal mastery needs to be an individual choice, therefore enforced take-up
will not work[3].

In addition, organizational size may become the barrier to internal knowledge sharing. When
the number of employees exceeds 150, internal knowledge sharing dramatically decreases
because of higher complexity in the formal organizational structure, weaker inter-employee
relationships, lower trust, reduced connective efficacy, and less effective communication. As
such, as the size of an organizational unit increases, the effectiveness of internal knowledge
flows dramatically diminishes and the degree of intra-organizational knowledge sharing
decreases[8].

Standardization :or standardisation is the process of developing and agreeing upon

technical standards. A standard is a document that establishes uniform engineering or
technical specifications, criteria, methods, processes, or practices. Some standards are
mandatory while others are voluntary. Voluntary standards are available if one chooses to use
them. Some are de facto standards, meaning a norm or requirement which has an informal but
dominant status. Some standards are de jure, meaning formal legal requirements. Formal
standards organizations, such as the International Organization for Standardization (ISO) or
the American National Standards Institute, are independent of the manufacturers of the goods
for which they publish standards.

The use of Standardization is to implement guidelines, a design, or measurements in order to

obtain solutions to an otherwise disorganized system.

The goals of standardization can be to help with independence of single suppliers

(commoditization), compatibility, interoperability, safety, repeatability, or quality.

In social sciences, including economics, the idea of standardization is close to the solution for
a coordination problem, a situation in which all parties can realize mutual gains, but only by
making mutually consistent decisions. Standardization is defined as best technical application
consentual wisdom inclusive of processes for selection in making appropriate choices for
ratification coupled with consistent decisions for maintaining obtained standards. This view
includes the case of "spontaneous standardization processes", to produce de facto standards.

Benchmarking is the process of comparing one's business processes and performance metrics
to industry bests and/or best practices from other industries. Dimensions typically measured
are quality, time and cost. Improvements from learning mean doing things better, faster, and
cheaper.
Benchmarking: involves management identifying the best firms in their industry, or
any other industry where similar processes exist, and comparing the results and processes of
those studied (the "targets") to one's own results and processes to learn how well the targets
perform and, more importantly, how they do it.

The term benchmarking was first used by cobblers to measure people's feet for shoes. They
would place someone's foot on a "bench" and mark it out to make the pattern for the shoes.
Benchmarking is most used to measure performance using a specific indicator (cost per unit
of measure, productivity per unit of measure, cycle time of x per unit of measure or defects
per unit of measure) resulting in a metric of performance that is then compared to others.

Also referred to as "best practice benchmarking" or "process benchmarking", it is a process

used in management and particularly strategic management, in which organizations evaluate
various aspects of their processes in relation to best practice companies' processes, usually
within a peer group defined for the purposes of comparison. This then allows organizations to
develop plans on how to make improvements or adapt specific best practices, usually with the
aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is
often treated as a continuous process in which organizations continually seek to improve their
practices.

Structuring,: also known as smurfing in banking industry jargon, is the practice of

executing financial transactions (such as the making of bank deposits) in a specific pattern
calculated to avoid the creation of certain records and reports required by law, such as the
United States's Bank Secrecy Act (BSA) and Internal Revenue Code section 6050I (relating
to the requirement to file Form 8300).[1]

Legal restrictions on structuring can have some of the same economic effects as capital
controls in some economies, as the restrictions effectively limit the flow of capital by
magnitude and duration. Structuring controls can apply equally to taking money out of a
nation as well as putting money into the finance system in a nation.

Structuring controls should not be confused with capital controls. With capital controls, the
money that one can take out of a nation is limited by statute or regulation.

An institution :is any structure or mechanism of social order and cooperation

governing the behavior of a set of individuals within a given human community. Institutions
are identified with a social purpose and permanence, transcending individual human lives and
intentions, and with the making and enforcing of rules governing cooperative human
behavior.[1]

The term "institution" is commonly applied to customs and behavior patterns important to a
society, as well as to particular formal organizations of government and public service. As
structures and mechanisms of social order among humans, institutions are one of the principal
objects of study in the social sciences, such as political science, anthropology, economics,
and sociology (the latter being described by Durkheim as the "science of institutions, their
genesis and their functioning").[2] Institutions are also a central concern for law, the formal
mechanism for political rule-making and enforcement.
Chapter 3: Wages
Definition
"Wages" means all remuneration, earnings, allowances, tips and service charges, however
designated or calculated, payable to an employee in respect of work done or work to be done.
Allowances including travelling allowances, attendance allowances, commission and
overtime pay are

within the definition of wages. However, it does not include:

1. the value of any accommodation, education, food, fuel, water, light

or medical care provided by the employer;

2. employer's contribution to any retirement scheme;

3. commission, attendance allowance or attendance bonus which is of

a gratuitous nature or is payable only at the discretion of the

employer;

4. non-recurrent travelling allowance or the value of any travelling

concession or travelling allowance for actual expenses incurred by

the employment;

5. any sum payable to the employee to defray special expenses

incurred by him by the nature of his employment;

6. end of year payment, or annual bonus which is of a gratuitous

nature or is payable only at the discretion of the employer;

7. gratuity payable on completion or termination of a contract of

employment.

An employee's entitlements to end of year payment, maternity leave pay,

severance payment, long service payment, sickness allowance, holiday

pay, annual leave pay and wages in lieu of notice are calculated according

to the above definition of wages.

Overtime pay should also be included in calculating the above payments if :

• it is of a constant character; or

• its monthly average over the past 12 months is not less than 20% of

the average monthly wages of the employee during the same

period. Deductions from Wages

An employer is prohibited from deducting wages from his employee,

except under the following circumstances:

1. deductions for absence from work. The sum to be deducted should

be proportionate to the period of time the employee is absent from

work;

2. deductions for damage to or loss of the employer's goods,

equipment, or property by the employee's neglect or default. In any

one case, the sum to be deducted shall be equivalent to the value of

the damage or loss but not exceeding $300. The total of such

deductions shall not exceed one quarter of the wages payable to

the employee in that wage period;

3. deductions for the recovery of any advanced or over-paid wages to

the employee. The total sum to be deducted shall not exceed one

quarter of the wages payable to the employee in that wage period;

4. deductions of the value of food and accommodation the employer

supplies to the employee;

5. deductions, at the written request of the employee, in respect of

contributions to be paid by the employee through the employer for

any medical scheme, superannuation scheme, retirement scheme

or thrift scheme;
6. deductions, with the employee's written consent, for the recovery of

any loan made by the employer to the employee;

7. deductions which are required or authorized under any enactment

to be made from the wages of the employee;

8. deductions for outstanding maintenance payment owed by the

employee pursuant to the Attachment of Income Order issued by

the court.

Deductions under items (1) to (7) shall have priority over item (8).

Unless with the approval in writing of the Commissioner for Labour, the

total of all deductions, except those for absence from work and outstanding

maintenance payment, made in any one wage period shall not exceed one

half of the wages payable in that period.

Offences and Penalties

An employer who makes illegal deduction from wages of an employee is

liable to prosecution and, upon conviction, to a fine of $100,000 and to imprisonment for one
year.

Payment of Wages

Wages shall become due on the expiry of the last day of the wage period.

An employer should pay wages to an employee as soon as practicable but

in any case not later than seven days after the end of the wage period. An

employer is required to pay interest on the outstanding amount of wages to

the employee if he fails to pay wages to the employee within seven days

when it becomes due.

Offences and Penalties

An employer who willfully and without reasonable excuse fails to pay

wages to an employee when it becomes due is liable to prosecution and,

upon conviction, to a fine of $350,000 and to imprisonment for three

years.

An employer who willfully and without reasonable excuse fails to pay

interest on the outstanding amount of wages to the employee is liable to

prosecution and, upon conviction, to a fine of $10,000.

Failure to Pay Wages

An employer who is no longer able to pay wages due should terminate the

contract of employment in accordance with its terms.

If wages are not paid within one month after they become due, an

employee may deem his contract of employment to be terminated by his

employer without notice and is entitled to wages in lieu of notice in addition

to other statutory and contractual termination payment. To avoid disputes,

an employee should inform his employer when he exercises such rights

under the Ordinance.

Liability to Pay Wages of Sub-contractor's Employees

The principal contractors, superior sub-contractors and superior nominated

sub-contractors engaged in building and construction works are liable for

the first two months' unpaid wages of an employee who is employed by the

sub-contractor or nominated sub-contractor.

If an employee employed by a sub-contractor or nominated sub-contractor is owed wages, he

must serve a written notice to the principal contractor or

the main nominated sub-contractor within 60 days (or an additional period

of 90 days permitted by the Commissioner for Labour) after the wages

become due. The employee should state the following in the notice:

1. the name and address of the employee;

2. the name and address of his employer;

3. the address of the place of employment of the employee;

4. the particulars of the work in respect of which the wages are due; and

5. the amount of wages due and the period to which they relate. The principal contractor, the
superior sub-contractors and the superior nominated sub-contractors should pay wages to the
employee within 30 days after receiving the notice. They may request every superior sub-
contractor or superior nominated sub-contractor to the employee's employer to share out the
liability.

The wages paid by the principal contractor, the superior sub-contractors and the superior
nominated sub-contractors shall be a debt due by the employer of the employee to them. The
debt may be recovered through civil claims proceedings.

Object The Payment of Wages Act regulates the payment of wages to certain classes of
persons employed in industry. The Act guarantees payment of wages in time and without any
deductions except those authorized under the Act. The Act provides for the responsibility for
payment of wages, fixation of wage period ,time and mode of payment of wages, permissible
deduction. It also casts upon the employer a duty to seek the approval of the Government for
the acts & omissions for which fines may be imposed by him and also ceiling upto which the
fines can be imposed.

Applicability of the Act

The Act applies to every establishment within the meaning of industrial establishment or
other establishment as defined under the Act.The Act does not apply to those employees
whose average wages exceed Rs.1600/- per month . (section-1(6))

Enforcement Machinery

Labour Officers-cum-Conciliation Officers have been appointed as Authority' under the Act.
within their respective jurisdiction in the State. An appeal against an order or direction of the
Authority may be preferred within 30 days of the date on which theorder or direction was
made before the District court by the aggrieved party. All the Officers/Labour Inspectors of
the Labour Department have been declared as 'Inspector' to monitor the provisions of the Act.
(section-14&15).
What should a Factory Owner/Worker know about the Act

Every employer shall be responsible for the payment to persons employed by him of all kind
of wages required to be paid under the Act. (section-3)

Wages must be paid before the expiry of the 7th day after the last day of the wage period, if
less than 1000 workmen are employed and in other case on the 10th day. (section-5)

Wages must be paid in current coin or currency notes and by cheque or by crediting the
wages in the employee's bank account after obtaining his written authorization.(section-6)

Wages must be paid on a working day. (section-5)

To the person whose employment is terminated,

wages must be paid before the expiry of the second day. (section-5)

The paymaster shall display in a conspicuous place at or near the main entrance of the factory
a notice, in English and in the language of the majority of the person employed therein
showing the days on which wages are to be paid.(Rule-8)

No wage period should exceed one-month. (section-4)

Deduction from Wages

No deductions shall be made from wage except those authorized under the Act.(section-7)

MAINLY THE FOLLOWING DEDUCTIONS ARE PERMITTED. (section-7)

1.FINES

a) An employed person can be fined only for acts and omissions which are specified in a list
which is approved by the State Government or the prescribed authority.(section-8)

b) Before the fine is imposed on an employed person , he must be given an opportunity for
explanation. (section-8)

c) Fines should not exceed 3% of the wages in a month. (section-8)

d) Fines shall not be recovered by installment or later than 60 days of the date of imposition.
(section-8)

e) The paymaster shall maintain a register of Wages, Fines, Damages, Deductions and
Advances in Form VI(PW) (Rule 3,4 &17 )

2. Deductions(section-9 to13)

i) Deductions for the absence from duty.

ii) Deductions for damages to or loss of goods expressly entrusted to the employed person for
custody ,or for loss of money for which he is required to account, where such damage or loss
is directly attributed to his negligence or default.
iii) Deductions for house accommodation.

iv) Deduction for amenities as authorized by the Govt.

v) Deduction for recovery of advances and interest, and for adjustment of over payment of
wages.

vi) Deductions for recovery of loans from any fund constituted for the welfare of labour
approved by state Govt.

vii) Deductions for recovery of loans for house building or for purpose approved by Govt.

viii) Deduction for income-tax.

ix) Deduction on orders of a court or other authority.

x) Deductions for subscription and repayment of advance from any provident fund.

xi) Deduction for payments to cooperative sectors.

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Lay Off simply means temporary closure of any work, division of establishment or
entire establishment due to any reason such as non availability of material, power or for
maintenance. By lay off workmen employed in such job, division or factory or other
establishment will become jobless for the time being. In order to compensate loss of
remuneration, compensation at the rate of half the ordinary rate of pay will have to be paid to
them. Employees who are in the continuous service of at least one year will be eligible for lay
off compensation. Continuous service means total employment of 240 days in a year. Wages
for this purpose mean basic wages plus dearness allowance. No lay off compensation is
required to be paid for the weekly off days and declared holidays.The law relating to lay off
is provided in Industrial Disputes Act, 1947.

more

A lockout :is a work stoppage in which an employer prevents employees

from working. It is declared by employers to put pressure on their workers. This
is different from a strike, in which employees refuse to work. Thus, a lockout is
employers’ weapon while a strike is raised on part of employees. Acc to
Industrial Disputes Act 1947, lock-out means the temporary closing of a place of
employment or the suspension of work or the refusal by an employer to continue
to employ any number of persons employed by him.

A lockout may happen for several reasons. When only part of a trade union votes
to strike, the purpose of a lockout is to put pressure on a union by reducing the
number of members who are able to work.

For example, if a group of the workers strike so that the work of the rest of the
workers becomes impossible or less productive, the employer may declare a
lockout until the workers end the strike. Another case in which an employer may
impose a lockout is to avoid slowdowns or intermittent work-stoppages.
Occupation of factories has been the traditional method of response to lock-outs
by the workers' movement.

PICKETING
When workers are dissuaded from work by stationing certain men at the factory
gates, such a step is known as picketing. If picketing does not involve any
violence, it is perfectly legal. Pickets are workers who are on strike that stand at
the entrance to their workplace. It is basically a method of drawing public
attention towards the fact that there is a dispute between the management and
employees.

The purpose of picketing is:

• to stop or persuade workers not to go to work

• to tell the public about the strike

 • to persuade workers to take their union's side

GHERAO
Gherao in Hindi means to surround. It denotes a collective action initiated by a
group of workers under which members of the management are prohibited from
leaving the industrial establishment premises by workers who block the exit
gates by forming human barricades. The workers may gherao the members of
the management by blocking their exits and forcing them to stay inside their
cabins. The main object of gherao is to inflict physical and mental torture to the
person being gheraoed and hence this weapon disturbs the industrial peace to a
great extent.
Lock-in
The term lock-in refers to the practice of physically preventing workers from
leaving a workplace. In most jurisdictions this is illegal but is occasionally
reported, especially in some developing countries.[citation needed]
More recently, lock-ins have been carried out by employees against
management, which have been labelled 'bossnapping' by the mainstream media.
In France during March 2009, 3M's national manager was locked in his office for
24 hours by employees in a dispute over redundancies.[1][2][3] The following month,
employees of a call centre managed by Synovate inAuckland locked the front
doors of the office, in response to management locking them out.[4] Such
practices bear some resemblance to the gherao in India.

Trade Union in India: is the primary instrument for promoting the union
of trade union movement and championing the cause of working class in India.
The Madras Labor Union was the first organized Trade Union in India followed by a
large number of trade unions in the Indian industrial centers. The Indian government
passed the Trade Unions Act in 1926, which legalized the registered Trade Union in
India. The Act also gives protection to these trade unions against certain civil and
criminal cases.

Significant Trade Union in India:

There are at present many Trade Union in Indiawhich regulates the aspirations of
the working classes. The All India Trade Union Congress(AITUC) is the oldest Trade
Union in India and till 1945 it remained the central trade union organization in India.
Some others are like -

• All India Bank Officers Confederation- AIBOC is the premier organization

of Bank Officers in India. This Trade Union in India stands apart from the others
as it is organized purely on apolitical lines.
 • All India State Government Employees Federation- AISGF is a trade
union organization representing state employees and teachers of different
states in India.
• Center of Indian Trade Unions - CITU is one of the major Trade Union in
India, opposing imperialistic intentions and patronizing interest of the working
classes.
• Hind Mazdoor Sabha - HMS is a progressive Trade Union in India that
prefers to refrain from political control.
• National Confederation of Officer's Association -NCOA represents the
managerial and supervisory staff of the Indian government owned public
Enterprises.
• Trade Union International - TUI forms a part of the structure of World
Federation of Trade Unions, representing the public employees,
telecommunication employees, health services, financial sector employees &
municipal employees of different countries of the world.

The Trade Union in India is engaged in protesting against the attacks on trade union
right, right to strike, right to collective bargaining, reduction of social security, closure of
industrial units and massive retrenchment of workers, and the endangering growth of
unemployment.

 All India Central Council of Trade Unions (Communist Party of India

(Marxist-Leninist) Liberation)
 All India Trade Union Congress (Communist Party of India)
 All India United Trade Union Centre (Socialist Unity Centre of India
(Communist))
 Bharatiya Mazdoor Sangh (Rashtriya Swayamsevak Sangh)
 Indian National Trade Union Congress (Indian National Congress)
 Indian National Trinamool Trade Union Congress (All India Trinamool
Congress)
 Centre for Indian Trade Unions (Communist Party of India (Marxist))
 Hind Mazdoor Sabha (socialists)
 Labour Progressive Federation (Dravida Munnetra Kazhagam)
 SEWA
 Trade Union Coordination Committee (All India Forward Bloc)
 United Trade Union Congress (Revolutionary Socialist Party)
The trade unionism: in India developed quite slowly as compared to the western
nations. Indian trade union movement can be divided into three phases.

The first phase (1850 to1900)

During this phase the inception of trade unions took place. During this period, the working
and living conditions of the labor were poor and their working hours were long. Capitalists
were only interested in their productivity and profitability. In addition, the wages were also
low and general economic conditions were poor in industries. In order to regulate the
working hours and other service conditions of the Indian textile laborers, the Indian Factories
Act was enacted in 1881. As a result, employment of child labor was prohibited.

The growth of trade union movement was slow in this phase and later on the Indian Factory
Act of 1881 was amended in 1891. Many strikes took place in the two decades following
1880 in all industrial cities. These strikes taught workers to understand the power of united
action even though there was no union in real terms. Small associations like Bombay Mill-
Hands Association came up by this time.

The second phase (1900 to 1946)

This phase was characterized by the development of organized trade unions and political
movements of the working class. Between 1918 and 1923, many unions came into existence
in the country. At Ahmedabad, under the guidance of Mahatma Gandhi, occupational unions
like spinners’ unions and weavers’ unions were formed. A strike was launched by these
unions under the leadership of Mahatma Gandhi who turned it into a satyagrah. These unions
federated into industrial union known as Textile Labor Association in 1920.In 1920, the First
National Trade union organization (The All India Trade Union Congress (AITUC)) was
established. Many of the leaders of this organization were leaders of the national Movement.
In 1926, Trade union law came up with the efforts of Mr. N N Joshi that became operative
from 1927. During 1928, All India Trade Union Federation (AITUF) was formed.

The third phase began with the emergence of independent India (in 1947). The partition of
country affected the trade union movement particularly Bengal and Punjab. By 1949, four
central trade union organizations were functioning in the country:
The All India Trade Union Congress,

The Indian National Trade Union Congress,

The Hindu Mazdoor Sangh, and

The United Trade Union Congress

The working class movement was also politicized along the lines of political parties. For
instance Indian national trade Union Congress (INTUC) is the trade union arm of the
Congress Party. The AITUC is the trade union arm of the Communist Party of India. Besides
workers, white-collar employees, supervisors and managers are also organized by the trade
unions, as for example in the Banking, Insurance and Petroleum industries.

Trade unions in India

The Indian workforce consists of 430 million workers, growing 2% annually. The Indian
labor markets consist of three sectors:

The rural workers, who constitute about 60 per cent of the workforce.

Organized sector, which employs 8 per cent of workforce, and

The urban informal sector (which includes the growing software industry and other services,
not included in the formal sector) which constitutes the rest 32 per cent of the workforce.

At present there are twelve Central Trade Union Organizations in India:

All India Trade Union Congress (AITUC)

Bharatiya Mazdoor Sangh (BMS)

Centre of Indian Trade Unions (CITU)

Hind Mazdoor Kisan Panchayat (HMKP)

Hind Mazdoor Sabha (HMS)

Indian Federation of Free Trade Unions (IFFTU)

Indian National Trade Union Congress (INTUC)

National Front of Indian Trade Unions (NFITU)

National Labor Organization (NLO)

Trade Unions Co-ordination Centre (TUCC)

United Trade Union Congress (UTUC) and

United Trade Union Congress - Lenin Sarani (UTUC - LS)

A decision tree is a decision support tool that uses a tree-like graph or model of
decisions and their possible consequences, including chance event outcomes,
resource costs, andutility. It is one way to display an algorithm. Decision trees are
commonly used in operations research, specifically in decision analysis, to help
identify a strategy most likely to reach agoal. Another use of decision trees is as a
descriptive means for calculating conditional probabilities. When the decisions or
consequences are modelled by computational verb, then we call the decision tree
a computational verb decision tree[1].

CAN YOU IDENTIFY YOUR CUSTOMER???

The first commandment of marketing is: “Know thy customer.” How can a

business identify and become educated about their customers? A first step is a

market segmentation analysis.

Market segmentation analysis divides a business’s customer base into market

segments based on demographic and lifestyle characteristics. The segments that

comprise the customer base provide a demographic snapshot of the customers.

The segments provide a “profile” of each particular group of customers.

Aggregated at the household level, the segmentation categories are

predetermined groups clustered together based on like characteristics. Many

different demographic variables are utilized in creation of the segments, such as

age, income, household type, ethnicity, occupation, and education.

In addition to demographics, consumer expenditures are also a part of each

segment. This data is used to validate the market segments and provide

additional information. “Psychographic” information is also part of each segment.

Psychographics are reflections of basic attitudes, values, and behavior of each

individual group. The result is distinguishable groups based on demographics,

spending patterns, and lifestyle choices.

Once segment are identified, then this data can be built upon by

supplemental research such as customer surveys and focus groups.

The individual market segments can be combined to provide customized

segments.

Application of Segmentation Analysis

The power of market segmentation analysis is (2) fold:

1. Customer Identification – Industries across the business spectrum are

becoming increasingly aware of the need to be familiar with their customer’s

needs, preferences, and desires. Availability of information and a dynamic

business environment have made consumer intelligence a valuable

commodity. An entity who understands the composition of their customer

base is better able to market to them effectively and adjust to changes.

Knowing the demographics of the customer base helps to determine the best

media channels in which to advertise. It also provides key geographic

information to determine where to target media. Finally, the information can

be used to formulate advertising messages and strategies that are most likely

to appeal to customers

2. Finding Likely Customers – The market segmentation analysis identifies the

customer demographically and geographically. Once the best and most likely

customers are identified, a universe of potential customers are now available

that can be targeted strategically. Providing market focus, key segments can

be targeted specifically and with a specific message. The marketing process

basically is to target customers who have the same characteristics of the

desirable customers. These are the most likely to respond based on the

current composition of the customer base. In addition, the advertising

messages can be customized to appeal to each segment.

MARKET CAMPAIGN DESIGN

Marketing campaigns can be designed around the market segmentation analysis.

In this analysis, customer value can be integrated into the market segmentation.

This assigns a value to each segment. This value can then be applied to noncustomers in
terms of their potential value. This provides an estimate of value if
a customer is acquired from a particular segment. This data also allows

quantification of the entire market area.

Potential value is an important element is designing marketing campaigns.

Knowing the potential value allows for Return-On-Investment (ROI) projections

prior to beginning a marketing campaign. By applying hypothetical response

rates and value, it can be determined if an advertising expenditure is justifiable.

By applying the geographic information a firm can better target its advertising.

The geographic information can be used to find concentrations of “look-alike”

customers from the top market segments. Once located, these prospects can be

targeted via the type of media most likely to reach them. Again, the message is

also strategically customized for each segment.