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SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

SUBMITTED BY

SATYA NARAYAN MEHER


Roll No. : 11MBAS09238
FOR THE PARTIAL FULFILMENT OF MBA PROGRAMME

UNDER THE GUIDANCE OF

Sushanta Barik

SUBMITTED TO

DDCE SAMBALPUR UNIVERSITY

SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

CERTIFICATE
This is to citify that the work entitled Industrial Relation Practices in
HINDUSTAND

AERONATIC

LIMMITED,

SUNABEDA,

ENGINE

DIVISION, is a piece of term project done by Satya Narayan Meher, a


student of second year MBA, under my guidance and supervision for the
partial

fulfillment

of

MBA

curriculum

of

DDCE

SAMBALPUR

UNIVERSITY, SAMBALPUR.

I WISH ALL SUCCESS IN YOUR LIFE

Ramakrushna Sahoo
Faculty in Human
Resource Management

SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

EXAMINERS CERTIFICATE
This project is submitted by Satya Narayan Meher of MBA bearing the
Roll No. 11MBAS09238 under DDCE, Sambalpur University and forwarded
for evaluation.

Internal Examiner

External Examiner

SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

CERTIFICATE OF APPROVAL
This is to Certify that the Project Entitled:
Industrial Relation Practices in HINDUSTAND AERONATIC LIMMITED
Submitted by Satya Narayan Meher (Roll No. 11MBAS09238), Sambalpur
University, Burla towards partial fulfillment of the requirements for the award of the
degree of Master of Business Administration (MBA) is a bona fide record of the work
carried out by him under the able guidance of Sushanta Barik, Faculty, Maa
Manikeswari Educational Trust.

(Approval of the Center Director)

SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

DECLARATION
I hereby undertake and declare that this submission is my original
work and, to the best of my knowledge and belief, it contains no
material previously published or written by another person nor
material which has been accepted for the award of any other degree or
diploma of any Institute or other University of higher learning, except
where due acknowledgement has been made in the text.

Satya Narayan Meher

SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

ACKNOWLEDMENT

I express my sincere thanks to the Centre Director, Maa Manikeswari


Educational Trust for his valuable suggestions to prepare this project.
I wish to take this opportunity to express my deep sense of gratitude
to Ramakrushna Sahoo for his valuable guidance in this Endeavour.
He has been a constant source of inspiration and I sincerely thank
him for his suggestions and help to prepare this report.
Finally it is my formost duty to thank all my respondents who helped
me to complete my filed work without which this project not has been
possible.

Satya Narayan Meher

SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

CONTENTS
CHAPTER-I

INTRODUCTION

CHAPTER-II

BRIEF HISTORY OF HAL

CHAPTER-III

STRUCTURE AND FUNCTIONS OF THE PERSONNEL DEPARTMENT

CHAPTER-IV

TRADE UNION: A THEORETICAL FRAMEWORK

CHAPTER-V

CONCLUSION AND SUGGESTION

CHAPTER-VI

BIBLIOGRAPHY

SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

CHAPTER-I
INTRODUCTION:
Labour today is the front page' news throughout the world.
The concept of Industrial Relations & Personnel Management
centers around "labour". Generally labour sells his physical &
mental services to others with a motto to earn his living. Hence
they should be recognized as a part & parcel of the organization.
But in early stages of industrialization he was exploited
ruthlessly due to self seeking objectives of capitalists. During this
period social conditions of workers had reached their lowest ebb.
The workers were over worked. Women & children were employed in
factories & mines in unhygienic conditions, slums & overcrowding
around the factory were common people in industries were not
treated as human beings. Unimaginable long hours of work in ill
lighted, ill-ventilated factories & lower wages barely enabled them to
keep the fire of life burning. It was a movement where out manhood
was brutalized to maximum extent, womanhood was dishonored &
childhood poisoned at every source.
But every day is not Sunday. Gone are those days when
labour was treated as

commodity that could be purchased, made

use of & discarded when value went down. Thanks to rapid changes
in science & technology, behavioral science universal recognition of
human rights, the management of industry came to realize that
the worker does not only brings his hand to the organization but
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SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

he is also utilizes his head for the betterment of the organization &
is essentially
a human being having a heart full of emotions & finer things life.
Simultaneous to this the worker also become educated enlightened
day-by-day & started demanding his rights. Hence they are
regarded as the partner of the production in today's industrial
world.
Now fate of employers is guided by fate of workers. Now
management is trying their best to magnetize workers by providing
different welfare measures. The cordial relationship that exists
between labour & management is known as labour management
relation in industrial cycle.

CONCEPTI CONCEPTUAL FRAMEWORK


Industrial Relation is nothing but an existing relationship
between employees & employers. It constitutes of title most
complex & delicate relationship in the course of running of an
industry. An industry is a social world in miniature. As association
of various persons creates industrial relationship. This association
affects social, political & economic life of the whole community.
Thus, industrial life creates a series of social relationship, which
regulates the relations not only between workmen & management,
but also of the community; Industrial Relations have been defined
in various way
Dale

Yoder

defines,

"Industrial

Relations

describe

-relationship between management and employers or among


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SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

employees and their organization that characterize or grow out of


employment."
According to the H.A.Clegg,"the field of industrial relations
includes the study of worker & trade union, management
employers associations & the state institutions concerned with the
regulation of employment."
Industrial organization has four major resources. They are
man, machine, material & money. But man is the most important
resource, unless management & labour realize their mutual
obligations & their industrial roles, no enterprise can real exist.
Labour & management have to recognize that there can always be
differences of opinion, which needn't lead to conflict.
The modern industrial organization is based on two large
variables. One is accumulative & aggregate of large capital &
another one is aggregation of large number of workers organized
under trade union.

OBJECTIVES OF THE STUDY


The study has two co-equal objectives. To have a first hand knowledge about the practices of the
organization

in

the

field

of

Personnel

Management,

Industrial Relations.
To get overall experience of an organization, its day to day
problem & the experience of a personnel executive in

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SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

company.
In a border sense the present study enables a student to
understand;
Organization structure & internal organization of personnel
department.
Functions of Industrial Relations Department.
Functions & duties of personnel department.
Management culture & style.
The causes, consequences & techniques
of solving disputes.
Handling

of

day-to-day

grievance

of

workers.
Trade unionism & collective bargaining.
Thus, both theoretical & practical knowledge will help one to
understand about the subject, projects the whole edifice of the
organization in which the study has been conducted.

SCOPE OF THE STUDY


Though the scope of field study is very vast, keeping in view
the availability of the resources & time factor, the present work is
confined to a single unit. The present
Study also specific in that, it aims at studding how industrial
unit i's organizing its manpower & administration them towards
achieving organizational goal. The present study aims at making an
elaborate analysis of different functions in the area of personnel
administration, industrial relations.
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The scope of the study is confined to H.A.L (K.D) Sunabeda. The


data have been elucidated in the following areas:
Organizational structure and function of the personal
department, industrial relations department.
Positive aspects of industrial relations which broadly covers
collective bargaining. Labour management co-operation.
Grievance handling and disciplinary actions.
Trade union and its relationship with the management.

IMORTANCEOFTHESTUDY:
The subject Human Resource Management (MBA) is a
professional source, of which the researcher is a student. In any

Profession, It is not merely academic and theoretical but is


definitely practical in its aim. As such the theory has to be put to
test

in

practical

situations.

Human

Resource

Management

processes a body of knowledge or theory and hence it is an art and


I should deal with the applications of the theory. A student of
M.B.A (HRM) along with theoretical knowledge must also acquire
practical experiences by making field visits to actual industrial
organizations.

PURPOSE OF THE STUDY:


The subject "MBA (HRM)" is considered as a professional one.
So the students are required to gain knowledge not only from the
theoretical aspect but also from the particle experiences. There is
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saying that "Theory is disciplined by practice and practice is


advanced

by

theory".

Moreover

theory

and

practice

are

complementary to each other. From this it is implied that a student


must have completely knowledge. So both the learning of theory
and practices are made obligatory.
The prime importance of the study being an academic one,
the researcher as a student of MBA(HRM) has to submit a
dissertation based on the field study report in order to get degree.
Field work report is a part fulfillment of MBA(HRM) course.

METHODOLOGY
For investigating & acquiring scientific knowledge about any
problem situation or subject, a researcher has to make out the
methodology of the study, which refers to the body of methods or
techniques used in conducting the study. To make the present
study more scientific, the following methodology has been adopted.

METHODS OF DATA COLLECTION


For the present study the methods of research utilized are:
Historical method & Survey method. Historical method includes the
personnel bulletins, personnel policy book, records, files, and
documents, pamphlets supplied by them. Survey methods include
the data collected from schedules & questionnaires.

SOURCES OF DATA COLLECTION


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Collection of data from primary sources likes management


representatives, union representatives & workers on random
sampling basis & secondary sources include the records &
documents supplied by them. The tools & techniques used for data
collection

were

with

the

help

of

structural

scheduled

questionnaires. A cross section of group "A to group AF' workers &,


grade I to grade "II' executives as well as union office bearers were
interviewed in this regard.

LIMITATIONS
While conducting the research work, the researcher had to
face some or other difficulties. The present study also does not
escape from it. The limitations are as follows:
The time allowed for data collection was about to one
month. It is difficult to get all information within a short
span of time.
HAL, KD being a defense production unit, most of the
data are kept confidential, as per "Official Secret Act
1923".
The hindrance before the researcher was that most of the
executives as well as the workers were busy with their
normal work.
Some times the executives opined from their own
personal experiences while the workers, union office
bearers gave information from their angle and not as per
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the demand of the study.


Finally the company is a big concerned & has huge
records & data & the researcher had to carry out his
study on random sampling basis, omitting many of the
cases & records.

CHAPTERISATION
The study is presented in a more specific manner for better
convenience of the readers & for this, the entire study has been
divided in to five chapters & is arranged in logical sequence. So
far as the first chapter is concerned it covers the introduction of
the subject. In the second chapter, a brief profile of the
organization is given. In the third chapter a detail function of
personnel department & industrial relations department is
made. In the fourth chapter, industrial relations practices it
H.A.L, (KD) is given. In the fifth chapter the whole discussion is
concluded & suggestions are given.

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CHAPTER-II
BRIEF HISTORY OF HAL
The Hindustan Aeronautics Limited at Koraput division was
established to manufacture aero engines for fitment of MIG type of
aircraft. Construction for Koraput division at Orissa started in
1964 & the actual production of engines started in 1969.
HAL is the backbone of India's Air Defense. An agreement
was signed in August of 1962, with the Soviet Union for the
manufacture of MIG-21 EZFL Aircraft under license. The Aero
engines factory at Koraput, Hyderabad has been set up to meet his
requirement under the name of Aeronautics India Limited on 1 5t
Oct. 1964 & the company under the name Hindustan Aeronautics
Limited was formed.
The government sanction for the first phase of construction
of the aero engine factory at Sunabeda, in the Koraput district of
Orissa was accorded in March 1964 & the factory started
manufacture of R11 F2-300 series III engines for the fitment on
MIG-21 FL Aircraft from 1968-69 onwards. The first engines of
imported category were manufactured in Dec. 1968 & various
categories of engines were produced during the subsequent years.
The first raw material engine was produced in Feb. 1971.
The floor area of factory buildings (1,09,212 sq. mts.) as well
as plant & machineries have provisioned for the manufacture of
120 engines ofF2 series & overhaul of 144 engines per annum on
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two shift basis initially. Subsequently, plant & machine provision


for the overhaul of engines has been increased to 160 in the year
1984-85.
The

production

programmes

for

the

factory

also

includes

manufacturing of forgings & castings required of MIG-21 aircraft.


To meet the air force requirement for imported fighter or
interceptor aircraft an agreement was signed with USSR in Aug.
1976 for manufacturing ofMIG-21 BIS aircraft.
The government's approval for setting up capital facilities
was accorded in Oct. 1977.The first engine of the imported
category was delivered to HAL Nasik Division in the year 1978-79.
A total of 300 engines were to be delivered under this project.
In August 1966 an agreement was signed with Soviet Union
to set up overhaul project in this division & government sanction
was accorded in1967. The factory started overhaul of R11 F2-300
series-III engines from 1970-71 & the first overhaul engine was
delivered in Feb. This division till the end of March 1985 has
overhauled a total of 1576 enigmas.
Establishment of facilities of overhaul of R-25 series have
been almost completed & the first interim overhaul of engine of R25 series has been delivered during March 1983, with signing of
the inter government agreement for the manufacture of MIG-27.M.
Aircraft on 19th March 1982, the division was involved in
manufacture of 200 nos. of R29 B series of engines for the year
1984-85. Government during Sept. 1985 approved the preliminary
project report for the manufacture of R29 B series. The
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SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

reproduction activities like establishment of capital facilities,


provision of tools, finalizations of technologies etc. are in progress.
The raw materials production was launched in the year 1985-86 &
the first raw material engine was delivered in the year 1987-86.
The organization comes under the Factories Act 1948.

Organization at Present
Over the last six decades, HAL has grown progressively into
an integrated Aerospace Organization with the indigenous design
and development of advanced light Helicopter (ALH-Dhruv),
Intermediate Jet Trainer (UT) and light Combat Aircraft (LCA-Tejas).
The ongoing major projects and programmes include ALH
(both in military and civil roles), IlT, LCA, Pilot less Target Aircraft
(PTA), SU-30 MKI and Hawk Advanced Jet Trainer.
Aligning

with

emerging

future

requirement,

HAL

has

initiated the indigenous development of light Combat Helicopter


(LCH); as well as naval and trainer versions of LCA.
Geographical Location
While installing an industry an entrepreneur has to choose
the location properly considering the pre-requisites like availability
of land, labour, power, raw materials, communication facilities etc.
If these factors are taken as units of measuring rod, the company
Hindustan Aeronautics Limited, KD is located in a very advantages
position. This company is located at Sunabeda in the Koraput
district of Orissa, which is adjacent to the national highway no. 43

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linking Vishakapatnam-Raipur. The nearest railway station is


Koraput station & nearest airport is Vishakapatnam dock, which
is approximately 210km from Sunabeda. The river "kerandi" which
acts as a perennial source for supplying water is flowing in the
northeastern side of HAL Township & a proposal for construction
of a permanent airfield is under progress in the township. The
organization located at Sunabeda in Koraput district, which is
about
139Kms from Vishakapatnam in A.P. and 39Kms from south
to Jeypore in Orissa.
Locational Advantage
The location of the factory has got many advantages. The
hilly area of Koraput District is a high strategic from Defense point
of view. The dense forest provides camouflage of the factory from
Arial view and from this angle an enemy plane may miss the
location of the plant. The Kerandi river acts as a perennial source
of supplying water which in the Northeastern side of HAL KD,
Sunabeda. Water supply is available through out the year.
Excellent power supply is provided by the Orissa State Electricity
board (OSEB), which is having a separate grid for HAL Koraput
Division. The labour force is available at a cheaper ate.
Moreover this factory is adjacent to the NH-43 linking
Vishakapatnam, Raipur. The nearest railway link is Koraput
station, which is 15Kms from Sunabeda, which comes under
Southeastern railway and nearest port is Vishakapatnam that is
approximately 210Kms from Sunabeda. An airfield located at
Jeypore, which is 39Kms from Sunabeda.
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Above all, the atmosphere of Sunabeda is cool and is more or


less pollution free which is an important advantage for location an
aeronautic factory.
These are the requirements of an entrepreneur before
installing an industry. The aero engines plant was set up at
Sunabeda because it is back ward area and if developed it can be
modernized by the establishment of the factory. It was also the
selection of the collaborators and geographical climatic conditions.
The place become a reality with the establishment of the aero
engine factory at Sunabeda and the place has been developed and
meet the needs of our define, as well as the local people and above
all to the country to a greater extent.

Establishment
HAL, KD was established in the year 1964, Management is a
private sector under taking under the ministry of defense,
Government of In1ia. As this organization is registered one, the
Regd. No. is KT-62 (SI. No. 00169).
Raw Materials
The work of HAL, KD is mostly concerned with mechanical
meteorological engineering activities. The main raw materials used
for this purpose are steel, aluminum, manganese etc. are produced
with in the country. However, some materials like alloys are
imported from Russia as well.
Trade Unionism
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There are two-registered unions among which one is the


recognized union & the other is not recognized, existing in this
organization. At present the recognized union is the HAMS with
whom the management negotiates & forms participative forum.
And the other union is HAEA. It is recognized through Check-off
system. At the end of the year there would be election.
Environmental Policy
Sunabeda

being

remotely

located

offered

closest

environment to its inmates & posed challenges to a higher


magnitude like creating a convenient & congenial social set up for
the employees.
The HAL, Koraput Division has undertaken plantation drive
that ultimately contributes to environmental protection & also
helps the natural wealth of the state.

Waste Management System Of The Organization


There are seven wastes are to be minimized or removed.
They are motion, delays, transport, defects, overproduction,
overworking & storing.

PRODUCTS MANUFACTURED BY HAL


Indigenous Names Of Hal Products
Sl.No,

AIRCRAFT

ENGINE

INDEGOUS NAME

MIG-21FL

R-ll

BADAL

MIG-21 M/MF

RII-F2S/F2SK

TRISHUL

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MIG-21 BIS

R-25

VIKRAM

MIG-23 MF

R-29

RAKSHAK

MIG-23 BN

R-29B

VIJAY

MIG-25

R-29B

GARUD

MIG-27M

R-29B

BAHADUR

MIG-29

RD-33

VAJ

GANT

ORPHEUS

AJEET

10

HF-24

ORPHEUS

MARUT

11

HJT-16

VIPER-II

KIRAN

12

JAGUAR

ADOUR MK-803

SHAMSHER

13

MIKAGE-2000

M-53

VAJRA

14

HS-748 (A VRO)

DART-531

CHITRA

15

ALLOUTEE

16

AN-32

SUTLUJ

17

MI-8

PRATAP

18

MI

AKBAR

19

HPT-32

PISTON

20

SU-30

AL
31 FP
ENGINE

ARTOUSTE-IIIB CHE (HELL COPTER)

The following are the products developed and designed by


HAL :
Sl.No.

NAME OF THE CRAFT

PURPOSE

1
NO.

HT

TRAINER

PUSHPAK

TRAINER

KRISHAK

AIR OBSERV A nON

MARUT (HF-24)

GROUND ATTACK

MARUT (TRAINER)

ADVANCED JET TRAINER

KIRAN MAKE-II&IA

AGRICULTURAL

BASANT

GROUND ATTACK

AJEET

ABTRAINER
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HPT-32

TRANSONIC JET

10

AJEET

TRAINER

QUALITY POLICY
Manufacture & overhaul products to fully meet customers
quality & reliability requirements including functions,
maintains ability & life characteristics with due attention
to economy in production & delivery schedule.
Adherence

to

manufacture,

approved
assembly

specification
test

&

during

delivery

with

receipt
strict

prevention of defects.
Selection,

development,

evaluation

&

monitoring

of

suppliers & subcontractors using scientific methods &


extending adequate technical support to them.
Planned & systematic execution of the programme for
familiarizing customers, adequately on proper usage of
the products.
Periodic review for continuous improvement bases on the
feed back of field performance from the customer & their
own experience.
Development of human resource by imparting knowledge
& skill through one concept to all personnel in the
company.

CUSTOMERS
The main customer of the organization of the HAL, KD is
India Air Force. But after the new economic policy was introduced
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HAL is exporting its products to


Republic of Yemen (Department of defense)
Republic of Vietnam
Republic of Laos
Republic of France
Republic of Government Syria.
Mitsubishi
Department of space government India
BHEL
MHI, Japan
Government of Iraq
Supply of spares to other HAL Division
India Coast guard

MISSION & VISION


MISSION: To become a globally competitive aerospace industry
while working as an instrument for achieving self reliance in
design, manufacture and maintenance of aerospace defense
equipment and diversifying to related areas, managing the
business on commercial lines in a climate of growing professional
competence.

Values: - HAL, KD has committed to the value to guide their


activities. They are
Customer satisfaction
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Commitment to total quality


Cost and time consciousness
Innovation and creativity
Trust and team spirit
Respect for the individual
Integrity
Vision: - To make HAL a dynamic, vibrant, value based learning
organization with human resources exceptionally skilled, high1y
motivated and committed to meet the current and future
challenges. This will be driven by core values of the company fully
embedded in the culture of the organization.

OBJECTIVES
The objectives of the company are as follows:
To conduct its business economically and effectively that
it can contribute its due share to the national effort for
achieving a self-reliant and self-generating company.
Serve as an instrument of the National policy to achieve
self-reliance in the design and production of aircraft: and
aeronautical equipment to meet the countries changing
and growing needs with special emphasis on military
requirements.
To develop and maintain an organization which readily
respond and adopt the changing motive of socio-techno
economic relationship and wherein a climate of growing
professional

competence
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self-discipline,

mutual

SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

understanding

deep

commitment

and

sense

of

belonging will be fastened and each employee will be


encouraged to grow in accordance with this potential for
the furtherance of the organization goals.

CLASSIFICATION OF EMPLOYEES
The employees are classified according to their status. They
are classified into direct workmen & indirect workmen. All the
employees are skilled. All the employees are paid on time rated
basis. The employees are placed in Scale-l to Scale-IO according to
their status. The total manpower is 3410, out of which 762 are
executives,

workmen-2648,

direct

workmen-I

539,

indirect

workmen-II 09, ladies approx-100.

COMPETITORS
These are the indirect competitors because HAL is a supplier
of fighter planes where as these are supplier of passenger planes.
They are -The Boeing, The Lockheed Martin, The DassauIt, and
The Saab Gripen. There are no direct competitors of HAL.
India has signed a $1.75 billion contract to buy 66 Hawk MK
132 Advanced Jet Trainer.

LEADERSHIP STYLE OF THE MANAGEMENT


As it is a public sector enterprise, the leadership style is
democratic in nature. Employees at all levels are being consulted &
suggestions are taken. Long term and short term development
plans are not kept secret.

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TRANSPORTATION
Company's transport is provided for recreation /picnic
purposes to employees welfare fund on payment of nominal rates.
Children of the employees studying in DA V College, Koraput &
school children inside the township are provided free transport to
their schools.

CORPORA TE SOCIAL RESPONSIBILITIES


This Division has adopted 8 surrounding villages for the
socio-economic development in line with company's corporate
social responsibility programme. The villages are -Old Sunabeda,
Jadaguda,

Maliguda,

Kakigam,

Janiguda,

Sanabadigam,

Chikapara , Dumriput.
The following facilities are being extended to these villages by the
division Complete Medical aid & treatment in HAL hospital.
Besides this special medical camps are organization
periodically in these villages for treatment, surgery, family
planning & child immunization.
Free/confessional education to the children of these
villages in the educational institutions runs by HAL
through Aeronautics Education Society.
For the benefit of the school going children, there is free
distribution of study materials in the schools of the
adopted villages.
Provision of community center.
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Provision of drinking water in the villages through tube


wells or open wells.
Provision of sports activities & cultural activities through
the Division's Sports club, Employees Welfare Fund &
Cultural Association.
Repair or Renovation of all schools building, provision of
toilets in all schools of adopted villages.
Sponsoring of teams in District Level Tournaments &
distribution of game items.
One shop has been allotted to women self help group for
selling their products.
Other initiatives such as blankets & sarees to needy &
poor persons & it continuous every year.
Facilities issue of BPL cards to eligible persons in
coordination with State Government.
Facility payment of old aged pension to eligible
persons in coordination with State Government.

FINANCIAL POSITION
HAL is a profit making public sector unit. The financial status
of the organization for the last 5 years is as follows:
Year

Profit (In Lakhs)

2006-07

51.13

2007-08

58.64

2008-09

67.64
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2009-10

81.00

2010-11

126.30

SOURCES OF FUNDS

APPLICATION OF FUND

Funds from operation

Loss from operations

Issue of share capital

Redemption of share capital

Issue of debenture

Redemption of debentures

Long term borrowing

Repayment of loans

Sale of asset /investment

Purchase of asset/investment

Non-operating income

Payment of dividend

STANDING ORDER IN HAL, KD


HAL, KD has a codified standing order, which is in with the
Model

Standing

Orders

under

the

industrial

Employment

(Standing Order) Act 1946.


The certifying officer certifies the starring orders after
approval of the draft by the trade union & workmen. The standing
orders came in to operation after 30 days from the date of
certification standing orders finally certified shall not be amended
or modified until the expiry of 6 months from the date on which
the standing orders or last modification carne into existence. The
standing orders or the amendment is only liable for modification if
there is an agreement (bipartite) between the employer & the
workmen (or trade union)
The standing orders of H.A.L., KD canteen all the matters
listed in the schedule of the act such as:
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The application of standing orders.


Definitions.
Classification of workmen.
Identification badge.
Entry & exit.
Search.
Working hours.
Publication of holidays & paid days.
Publication of wage rates & classification of jobs.
Shift working.
Attendance & late coming.
Duties & obligations of workmen during working hours;
prohibition of political party.
Leave.
Festival holidays.
Payment of wages/salaries.
Stoppage of work.
Essential services.
Termination of employment.
Transfers.
Holding office of profit elsewhere.
Forwarding of application.
Medical.
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Safety measures.
Complaints & grievances.
Acts of misconducts.
o Minor misdemeanors.
o Major misdemeanors.
Penalties for misconduct.
Procedure for dealing cases.
Special procedure.
Service certificate.
Inventions & patents.
Retirement.
Liability of manager.
Exhibition of standing orders.
Proof of age or date of birth.
Sufficiency of service of notice, etc.
Loss of company property.
Processions.
Accidents.
Interpretation of standing order.
Saving.

WELFARE MEASURES
Statutory Welfare Measure

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Some of the statutory welfare measure is as follows:


Cleanliness.
Lighting & Ventilation.
Disposal of wastes, effluents, dust & fumes.
Overcrowding.
Drinking water.
Latrines, urinals & spittoon.
Facilities for washing, storing &
drying cloths.

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Non-Statutory Welfare Measure


Some of the non-statutory welfare are as follows:
Medical facilities
Housing
Educational facilities
Welfare fund (RA.E.W.F)
Sports facilities
Benevolent fund. (RA.E.B.F)
Co-operation stores. (H.A.E.C.S)
Social Security Measures
Some of the social security measures are as follows:
Workmen Compensation Benefit.
Maternity Benefit Act.1961.
Payment of Maternity Benefit
incase of death
The Payment of Gratuity Act 1972
Pension Scheme
Provident Fund

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Present status
A long term agreement with M/s Pratt & Whitney Corp.
Canada have been signed for export of critical rotating components
HAL has been accorded" NAVARATNA status by the government.

FUTURE EXPANSION PROGRAMME


Aligning with the increasing demands and tough global
competition HAL has also decided to put a foot forward towards
making indigenous Light Combat Helicopter; a dedicated attack
helicopter & 50/1OO-seater air bus. The more sophisticated
edition of AL31FP is in the pipeline.

WAGE OR PAY STRUCTURE OF EMPLOYEES


WORKMEN
SCALE

SCALE OF PAY (RS)

2900-45-3125-50-4875

2/A

3000-55-3275-60-5735

3200-65- 3525- 7 5-6150

4/B

3650-80-4050-90-6660

3950-95-4425-105-

6/C

4100-110-4650-1207470
4500-130-5150-1407650

7/D

4700-150-5450-1608650
5200-170-6050-1808970

8/E
9/F
10

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6100-185-7025-1959650
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EXECUTIVES
Grade

Scale of pay

Grade EO

13500-23000 .

Grade E1

17500-30000

Grade E2

22000-34000

Grade E3

26500-37000

Grade E4

30500-40000

Grade E5

34000-44000

Grade E6

37000-47100

Grade E7

40000-52500

Grade E8

45000-58200

Grade E9

52000-64000

DIRECTOR

75000 (Fixed)

CMD

80000 (Fixed)

HRD PHILOSOPHY OF HAL. KORAPUT DIVISION


Koraput Division has been doing pioneering work in the field
of HRD. Not withstanding its remote location, HAL, KD, has been
trendsetter in the field & has successfully implemented various
innovation HRD interventions over the year. For instance, the
programme on coping with the post retirement life for both
executives

&

non-executives.

The

executive

effectiveness

programme designed exclusively for executive whose performance


has

shown

decline.

Planned

&

systematic

execution

of

programme for familiarizing customers, adequately on proper usage


of their products. Periodic review for continuous improvement
based on the feed back of field performance from the customer &
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their experience. Development of human resource by imparting


knowledge & skill through one concept to all personnel in the
company.

LINE & STAFF FUNCTIONAL RELATIONSHIPS


The

Industrial

organization

commonly

divides

the

management functions into line & staff relations. The line


executives

are

those

who

directly

control

subordinates

in

production lines while staff executive are those who act in advisory
or functional relationship to other executives. An officer has direct
control over the staff in his own department & in relation to other
department his work is advisory. According to the organization
chart of HAL, KD, it has following departments. The function of the
department is directly related to production staff department is as
follows:
Personnel Department.
Industrial Relations Department.
Legal Department.
Security Department.
Town Administration Department.
Transport Department.
Medical Department.
Besides these, this division has other department such as:
Central laboratory Department.
Civil Engineering Department.
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Commercial Department.
Computer Service Department.
Customer Service Department.
Design Liaison & Indigenization.
Diversification & Exports.
Forge & Foundry.
Manufacturing Division.
Overhaul Shop.
Plant Engineering Department.
Quality Control Department.
System Audit.
Tool Engineering Department.

COMMUNICATION REVOLUTION
Catching up with the modern times, HAL took a big leap to
install tools of corporate communications. With a view to
streamline the flow of information from the company a state of the
art corporate communications department started functioning
officially on June 4, 2006.
Three months into its launch in the Delhi Wing of cropcom
was set up in mare cord time of seven days. With the sole aim of
empowering people through the simple yet powerful channels of
information & to build a corporate identity a series of measures
are being initiated by corpcom for the fusty time in the history of
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any PSU in India, & in house weekly news paper named "Minsk
Square Matters" was launched by HAL.
A world-class publication, set to act as HAL's official
mouthpiece is also on the anvil.

ACCOLADES & ACHIEVEMENTS


HAL has won several International & National Awards fc
achievements

in

R&D,

Technology,

Managerial

Performance

Exports, Energy Conservation, Quality and Fulfillment of Sods


Responsibilities. HAL was awarded the "INTERNATIONAL GOLD
MEDALAWARD or Corporate Achievement in Quality and Efficiency
a he International Summit (Global Rating Leaders 2003), London,
(UJ)y M/s Global Rating, UK in conjunction with the International
information and Marketing Centre (IIMC). HAL was presented the
International - "ARCH OF EUROPE \ward in Gold Category in
recognition for its commitment to Quality leadership, Technology
and Innovation. At the National level, HAL won the "GOLD TROPHY"
of excellence in Public Sector Management, instituted by the
Standing Conference of Public Enterprises (SCOPE). On 17th of July
'2006 HAL was declared ranking 45th among the 00 defense
companies of the world as released by US-bases defense news. The
Company scaled new heights in the financial year 2004-2005 a
turnover of Rs. 4534 Crores and export over Rs. 150.05 crores. HAL
has been successful in numerous R & 0 programmes development
both Defense and Civil Aviation sectors. HAL has made substantial
progress in its current projects:
Dhruv, which is Advanced Light Helicopter (ALH)

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Tejas - Light Combat Aircraft (LCA)


Intermediate Jet Trainer (IJT)
Various military and civil upgrades.
Dhruv was delivered to the Indian Army, Navy, Air Force and
the Coasi Guard in March 2002, in the very first year of its
production, a unique achievement. HAL has played a significant role
for India's space programs by participating in the manufacture of
structures for Satellite Launch Vehicles like:
PSLV (Polar Satellite Launch Vehicle)
GSLV (Geo Stationary Launch Vehicle)
IRS (Indian Remote Satellite) INSAT (Indian National
Satellite)
There are three joint venture companies with HAL:
BAEHAL Software Limited
Indo-Russian Aviation Limited (IRAL)
Snecma HAL Aerospace pvt. Ltd
Apart from these three, other major diversification projects are
industrial Marine Gas Turbine and Airport Services. Several CoProduction and Joint Ventures with international participation are
under consideration. HAL's supplies / services are mainly to Indian
Defense Services, Coast Guards and Border Security Forces, transport
Aircraft and Helicopters have also been supplied to Airlines is well as
State Governments of India. The Company has also achieved a foothold
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in export in more than 30 countries, having demonstrated its quality


and price competitiveness.

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CHAPTER-III
STRUCTURE AND FUNCTIONS OF THE PERSONNEL
DEPARTMENT
INTRODUCTION
The duties & responsibilities of the personnel department to help
the management regulate & administer the employment of human
resourse effectively. The personnel department looks-after recruitment,
selection, placement, induction, performance appraisal, promotion &
transfer of its personnel. The Personnel Department is headed by the
Genera Manager. There is a Deputy Personnel Manager, Personnel Office
(Recruitment) & an Assistant Personnel Officer (Statistical Policy) to help
the chief Manager. Below the ranks of the Deputy Personnel Manager,
there is an Assistant Personnel Officer 8 subordinate to him are two
supervisors. Similarly, two Chief Supervisors are placed under the
personnel officer (Recruitment) to help the management under scale 10.
There; one senior Assistant Supervisor to assist the Assistant Personnel
Officer(Statistical & Policy) under scale 9. The structure of personnel
deptt. is given in figure-2.

FUNCTIONS OF PERSONNEL DEPARTMENT


The various sections of the personnel department who has the
respective function are as follows:

ESTABLISHMENT SECTION:
The personnel officer of the establishment department ha certain
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functions such as:


Maintenance of the personnel records of all officers in GradeI. And above the records of the workmen is Grade-F & below.
Processing of application for the merit scholarship also for
the outside employment. (3) Keeping liaison with the District
Policy Authorities regarding their stay & movement. (4)
Arranging release of employees for training course in India &
Abroad.

STATISTICS SECTION:
The personnel officer of the statistics section deals with the
following functions:
To

maintain

the

record

regarding

manpower

in

MiG

information system format for submission to corporate office.


To provide certificate/watches to the eligible employee on
their completion of 10/15/25 years of services.
To send performance appraisal report to officers 0 probation.
Arranging pre- retirement medical checkup of the section.

POLICY SECTION:
The personnel officer of this section deals with the policy matter
regarding service conditions of employees, correspondence with the MD's
office/corporate

office

seeking

various

classification

on

rules

&

regulation received from the corporate office. It also deals with personnel
bulletin, personnel memorandum 8 circular relating to various rules &
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regulations affecting the service conditions of the employees.

RECRUITMENT:
The sources of manpower supply are many & varied & the
organization must know what & where they are, in order to fill up their
personnel needs. There are varieties of sources of recruitment, but in
H.A.L, KD, It fills up its various vacancies with the help of following the
sources.
Employment Exchange
Local press.
Campus Recruitment.
Recruitment of dependent of the deceased employees.
Recruitment of land affected persons.
Recruitment of distinguished sportsman.
However, presently the recruitment has stopped due to the surplus
manpower. Voluntary retirement scheme was operation for the few years
back which has also been stopped s a company has been able to reduce
the workmen to considerable extent especially the dead wood workers
were given the first preference to the option for the VRS.A 'resent, only
the professional owing skills of managerial engineers are given preference
for recruitment.

DISCIPLINARY ACTION:
Disciplinary action means taking necessary action against an
individual when the departs from the code of conduct observed by the
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organization, the main function of the disciplinary section is:


To frame charge sheet.
Examination

of

various

report

from

putting

up

department

on

disciplinary matters.
Receiving

explanation

&

notes

to

higher

authorities for decision.

HUMAN RESOURCE DEVELOPMENT CELLS:


The manager (P & D) performs' the HRD functions which are as
follows:
Monitoring the performance appraisal system,

Career planning & succession planning of officers,


Job rotation,
Sponsorship of officers to premier engineering management
institutes,
Grant of study leave,
Performance feed back to Officers,
Maintenance of computerized HRD database.
Conduct of periodic surveys.

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Training of P.G. students in plant units.

PERSONNEL POLICY:
The company has well formulated & declared personnel policy. The
personnel policy is formulated at the corporate level. The policy of the
company is very much necessary essential to guide & lead. If there is no
policy, there will be chaos. Management finds maturity over its decision
through personnel policy. Personnel policy relates to the overall business
needs through, recruitment & training. Thus, according 0 the needs, the
organization gets good people & acquires them according to their skills &
experience.

WAGE AND SALARY ADMINSTRATION:


H.A.L, KD, it has 12 divisions at different places. Wages are fixed at
the corporate level i.e. head office at Bangalore he negotiation between
the representatives of different recognized Trade Unions of the division
(known as coordinate committee) & the representatives of management.
The wage structure is revised from time to time in such settlement held
at intervals of 4 to 5 years. It is the corporate level, that has to decide
whether all individuals in the job of the employee.

INDUSTRIAL RELATION DEPARTMENT:


The industrial relations department of this division functions
harmoniously. There is one recognized union call* HAL. There has been
no loss of man hour due to strikes lockouts or no such practice during
last 5 years. Consequently or its accident free record the division has
been receive National Safety Schedule".

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Industrial relations department has started since the inception of


the plant. It is an independent department. Structure of The Industrial
Relations Department has been (described below in figure-3)

Brief on working of Industrial Relations Department in


HINDUSTAN AERONAUTICS LIMITED
Industrial Relations department functions with the objective of
maintaining a constant and cordial Industrial Relations climate for
facilitating un-interrupted continuance of the process of main production
activities. With this objective in view the department deals with
implementation of main provisions of labour laws and pursuance of
various statutory and non-statutory welfare activities.
In this process the department interacts with the officers union
and workers union. The department also deals with public relations
function of the division which besides doing various image building
activities takes care of visits of outsiders to the division, public action of
quarterly house magazine press releases etc. The department also brings
up to the notice of higher management about various press reports
published in the leading news papers where in HAL is focused.
As a part of welfare/ Cultural activities the department coordinates
the various activities of carious voluntary and cultural organizations
existing in Sunabeda via-Hindustan Aeronautics Employees Welfare
Fund, Hindustan Aeronautics Consumers Co-op Stores Ltd., Credit
Society Ltd. Etc.
Besides thirteen religious, linguistic and cultural association.
The printing press of the Division is functioning in the Industrial
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Relations Department.
Printing of various proformas/formats in day to use in the division
is done in the press. It also caters to the duplicating needs of stencil,
Type-outs of all the offices/Dept. of the entire factory. The printing press
also binds the booklet etc. thus printed as per necessity.
Workers Canteen Caters Tea/Snacks services six times in a day of
24hrs. in all the departments and shops at 25 service points. It provides
daily lunch to- 500 employees approx and to 400 contract laborers (only
issuing of rations)
It also provides dinner to 200 employees daily. In order to cater to
these needs workers canteen works round the clock on shift basis.' Since
canteen is the most vulnerable point for eruption of industrial relation
problem, all the activities are carried on with care, caution and adequate
planning.
Executive canteen provides tea services in the Administrative
Building. It also provides lunch to about 100 executives daily.
Industrial Relations department deals with establishment and
administrative matters pertaining to 383 PF Alc holder contract labourers
deployed in the division through seven labour supply contractors. The
department exercises control over sanctioned man days accorded every
quarter.
All

the

bills

submitted

by

the

contractors

through

user

departments are checked/verified and concurred by Industrial Relations


Department and sent to Bills Payable section for payment.
Different

statistics

regarding

these
48

contract

labourers

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SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

maintained in the dept. and sent to different authorities.

Brief on the functions of Industrial Relations Department .


Implementation of provisions of labour laws.
Interaction with labour Authorities.
Interaction

with

recognized

trade

union

and

officers

association. At present two Trade unions namely (i) Hindustan


Aeronautics Employees Association (HAEA) affiliated to INTUC
and (ii) Hindustan Aeronautics Mazdoor Sangh are existing in
the Division. Based on result of the last referendum held by the
appropriate Govt. The Hindustan Aeronautics Mazdoor Sangh
(HAMS) is at present the recognized one. The date of next
referendum is yet to be notified.
Nomination of members to various voluntary organizations vizEducational Society Co-op societies sports club, benevolent
fund, welfare fund, officers club etc. and extension of necessary
facilities to them.
Submission of statutory reports and returns to concerned
authorities.
PF Alc holder contract labour establishment who are working in
the division prior to 1982.
Public Relations:
o Issuing of press releases arranging of press conferences
putting of news papers cuttings relating to HAL to higher
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management including translation of vernacular ones.


o Publication of House magazines "Aeroflash".
o Conducting of cultural functions on the occasions of
National festivals and VIP Visits in co-ordination with
welfare fund and educational Institutions.
o Conducting of National Festivals viz. Republic day,
Independence Day etc. and other functions as per
corporate office instructions, via- Anti-terrorism days,
Martyr's day, Auami-Ekta Divas.
o Formation of puja committee annually and enabling
them to conduct "Sarvamin" pujas in the township. They
are"

Sital

Sashti",

"

Ratha

Yatra",

"Janmastami",

"Dussehera" and "Shyama Puja".


Interaction with recognized linguistic cultural Associations
including extension of facilities to them for their programmes,
functions.
Administration of statutory and non statutory viz.

(a) Canteens (Statutory):


Workers canteen & executive canteen separately exist in the division.
While the canteen is located near the main gate, the executive canteen
is located in the upstairs of IR Deptt. In the extension block of the
Administrative building. Both the canteens have been out sourced
since 151 August 2000 to a single contractor Sri. A V Appa Rao whose
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term has already expired and is on extension. The fresh tendering


process for a new party is under process.
The system of issue of Sodexho meal voucher coupons to
employees in lieu of canteen subsidy also exists in the division. As on
date 542 employees are availing the same.
(b) Extension of individual facilities to employees for social functions i.e,
marriage, birthdays, puja etc by allotting Kalyan Mandap, primary
school premises and provisions of dead body truck in case of death of
employee & family members.
(c) Issuing of salvaged empty 200 Itr. Capacity barrels to employees to
storing water.
(d) Issuing of bus passes to sons & daughters of employees for going to
college at Koraput.
(e) Sanctioning of bi-cycle advances.
(f) Granting of permission for further studies.
(g) Administrative approval referred medical cases to outside hospitals
and allied correspondences.
Printing press:
A printing press is functioning in the division under IR Deptt. the
press is a traditional one and printing of various formats, invitation
cards for official functions, booklets, programme cards on VIP visits etc
of urgent nature are only undertaken in the press.
Innovative welfare measures: Peripheral Development.

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The division has adopted 8 surrounding villages for their overall


development. Since most of them were displaced due to establishment of
the division. The inhabitants of the villages get complete medical aid and
treatment in the company's hospital. Special medical camps are
organized periodically for treatment, surgery, family planning & child
immunization. Beside study materials i.e. note books, pencils, erases etc
are supplied once in a year to UP schools of adopted villages. Rural
sports are conducted amongst youths of the villagers once in a year.
Further the division has constructed a Community centre in one of the
villages and handed over to the Sunabeda NAC for the benefits of the
villages.

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CHAPTER-IV
TRADE UNION: A THEORETICAL FRAMEWORK
INTRODUCTION:
In India Trade Union is a response to the challenge thrown by the
modern factory system. The economic activity of man which developed
gradually from the hunting, fishing an pastoral mode of life, through the
agricultural,demostic an handicrafts stage, to the modern work shop and
factory system created along with this development a number of
problems some of which are the recognition of private property, division
of society into two distinct classes of divergent interests, control of
industry and consequently of the means of production in the hand of few
entrepreneurs, emergence of industrial proletariats, unplanned growth of
cities and increasing unemployment arising out of technologies" changes,
cutting down the wages below the subsistence level, exploitation of
female and juvenile workers and intensification of labour. So the birth of
labour movement and later of the Trade Union Movement can be traced
to the attempts of certain social workers.
In the modern day, the relationship between the employer and
employees has been lost and their relations become very cold. Today in
an industrial life the wage earners stand isolated in a very weak
bargaining position with their employers, because labour has certain
peculiarities. So labour is the most perishable of commodity dependence
and immobility. It has no reserve power. Hence workers are unable to
bargain with the employers on -fair terms and deserve for higher profits.
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Individually, the worker does not know his importance and value in the
market and hence he is not in a position to place himself accurately with
his employers. Hence

he Trade Union came into existence; their growth and function are
depended on the political, economic and intellectual development in a
country.
So Trade Unions are important constituents of the industrial relation
system in any society that permit decentralized decision making and
group interest to shape the work rules.

TRADE UNION PRACTICE AT HAL, KORAPUT DIVISION


HISTORY

OF

TRADE

UNION

IN

H.A.

L,

KORAPUT

DIVISION:
H.A.L.KD came into existence in the year 1964 by way getting up
of its project office. The first batch mechanic trained at HAL, Bangalore
for Koraput division have join he division in the year 1966,After their
joining the number of workmen have substantially increased. They felt
the need in having a Trade Union to voice their immediate grievance
matters of heal the welfare etc. As an outcome of such feeling the Trade
Union

titled

"Hindustan

Aeronautics

Employees

association'(H.A.E,A)came in to existence and got register ! N the year


1966, registration nO.514/66. The original by-laws of H.A.E.A did not
provide for affiliation to any major political party and as such the said
union remained none affiliated to any political party till the end of May
1966. as a unique feature of H.A.E.A and was appreciated by many
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people, since due to non-affiliation it could serve the best interest of the
working class without political interference This single union remained
in power in H .A. L, KD for more than three decades i.e, from 1966 till
the end of may 1996.
As the country experienced the wave of BJP after 1990,in the
same way some of the members of the working class in H.A. L felt the
need of bringing another union into power Such disgruntled members
formed another union titled "Hindustan Aeronautics Mazdoor Sangh
(HAM.S)'affi1iated to BMS which turn owes its originating from
BJP political party. The said union was registered with the appropriate
registering

authority

wide

registration

NO.57/92.However,HAEA

continue to remain in power being the recognized union by HAL


management till the end of may 1996 in the absence of definite rules
regarding verification of union membership for the purpose of according
recognition. The Government of Orissa in order to overcome such
difficulty in recognition has formulated rules titled Verification of
Membership and Recognition of Trade Unions Rules, 1994.'Based on the
repeated representations made by HAMS, Labour-Commissioner-Cum
Secretary Implementation and Evaluation officer, Orissa Bhubaneswar
in September 1995 have appointed Returning officer and polling officers
for verification of membership of the two unions for the purpose of
recognition by the employer viz. HAL, KD. The process of verification
continued till May 1996 and the election amongst the workmen was held
on 28th may 1996 for the first time in the division. The Labor
Commissioner-Cum-State

Implementation

and

Evaluation

officer,

Orissa, Bhubaneswar has directed the General Manager HAL, KD to


recognize HAMS based on number of votes secured by them in the said
election. They remained power for the next two years as per provisions of
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t he aforesaid rule.
On completion of the said tenure of two years. Verification of
membership through secret ballot as per the provision of the aforesaid
rules was again held on 8th June 1998.This time also HAMS won the
election by securing 56.731 votes in there favors. Accordingly HAMS was
recognized it remained in power till the end of June 2000.
The election was held on 17th may 2000; the HAEA secured more
number of votes (54-71%) then HAMS. Accordingly it was recognized by
the management of HAL, KD and came in to power after a break of four
years.

Thus as on date of this project being made, HAEA is the


recognized union of HAL, KD. HAMS being affiliated to Bipeds major
political support from the said party. In order to match the said
challenge in equal terms, late, HAEA has affiliated itself with INTUC
which owes 11 origination to the congress party.
The HAEA will remain in power for 3 years. Since "Verification of
Membership and Recognition of Trade Union Rules, 1994' has been
amended making such provision (Le, t h tenure of recognition will
remain in force for 3 years instead of 2 years) .

SALIENT FEATURE OF HAEA


As per bye-laws, the HAEA possesses the following officer bearers:
Sl.No.

Office Bearers

Numbers

President

1
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Working President

Vice-President

General Secretary

Secretary

Treasurer

The above 17 office bearers and 40 nos. of executive


members constitute the Executive Body of HAEA.
They are elected through secret ballot method. The term office is
two years. The returning officer conducts the election who is nominated
by the President or the President himself acts as a returning officer if he
is not contesting. The union subscription is deducted from members
through payroll from their monthly salary bills. So the recognize union
enjoys the check-off system. The subscription rate is Rs. 5 per month.
The union account is maintained by its treasurer. And it is audited by
the registered auditors. The mount received byway of subscription is
utilized in all types of union activities. The accounts are always made
available for verification by the members. The HAEA makes demands
based on the resolution of the Executive Body Meeting and General Body
Meeting and all the policy and resolutions re implemented by the office
bearers of HAEA.

SALIENT FEATURES OF HAMS


As per bye-laws, the HAMS possess the following officer bearers.

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Sl.No

Office Bearers

Numbers

President

Vice-President

General Secretary

Secretary

Treasurer

Office secretary

The above 14 office bearers of 37 nos. of executive committee


members constitute the executive body of HAMS.
Unlike HAEA, these office bearers of HAMS are unanimously
selected in their annual conference/General Body Meeting. Term of
office is for one year. The organizing secretary, Southern Division of
Orissa acts as a returning officer and conducts the election.
Since it is not a recognized union. The subscription collected from
the members by concerned executive committee members on rendering
proper receipts. The rate of subscription is RS.5 per month.
On the whole, the unions activities are controlled at guided as per
there central direction. Besides, the local issues are taken up as per the
resolutions adopted in 11 executive Committee/General Body Meetings.

ANALYSIS OF RADE UNION ACTIVITES IN H.A.L, KD


In the H.A. L, KD all the welfare facilities (both statutory/nonstatutory) are extended by the management all areas and the recognized
unions support the management all such activities. The office bearers of
the reorganization union negotiate with the management. At the
division level, the negotiation process starts with discussions across the
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table and is finalized. However important issue relating to any change in


policy is settled with the signing bipartite/tripartite agreements. The
major issues concerning wage, fringe benefits, service conditions I etc.
are resolved through collective bargaining system which takes place at
the corporate level of the company. The recognized trade union a part of
the All India HAL Trade Union Co-ordination Committee (AI HAL
TUCC).The recognized union of all Divisions and Corporate office
together constitute.
At Corporate level, the collective bargaining process comes to an
end with the signing of bipartite agreement between management and
(ALHAL TUCC).Such agreement is further ratified with the signing of
tripartite agreement in presence of the appropriate conciliation officer.
HAL management always possesses positive attitude for maintaining
harmonious industrial relations. The recognized union in HAL engages
its main activity to secure fair wage for workers, provide security to
workers, struggle for the betterment of the workers and protect their
interest, besides carrying out collective bargaining process with the
management.

INDUSTRIAL

DISPUTE

AND

ITS

METHODS

OF

SETTLEMENT
There

are

two

important

aspects

of

industrial

relation

of

cooperation and another is conflict. The Industrial relation is such


relationship which brings about conflict. Conflict is a general concept.
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In this study it is limited to Industrial dispute only.


Industrial Dispute Act 1947 defines, "industrial

Dispute means

any dispute or difference between employers and employees or between


employers and workmen or between workmen and workmen which is
connected with the employment or not employment or terms of
employment or the conditions of labour if any person.
Industrial Dispute means disputes relating to industry. There are
mainly two types of disputes.
1. Disputes that arises out of dead locks in the negotiations for
a collective agreement popularly known as Interest Dispute".
2. Dispute

that

arises

from

day

to

day

workers

grievances,popular1y known as "Grievance Dispute."


There are various factors which are responsible for raising industrial
disputes. These factors are:
Industrial factor.
Management attitude towards labour.
Government
Machineries.
Other causes including political factor.

Whatever may be the reasons of industrial dispute it should be


settled at the initial level only? The impact of industrial dispute is
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very far reaching. They disturb the economic, political and social life
of a country. Industrial dispute are not less- than war. As it was the
causalities and sufferings do not remain confined to soldiers fighting
in the front. Similarly in case of industrial disputes adverse effect
doesn't remain confined to the employees and employer of the
industry. Though it starts locally. A war has every possibility of
engulfing the entire humanity; similarly the industrial dispute affects
the entire community. Indus trial dispute in basic Industries is like
big stone thrown in to a pond causing ever widening wave: till the
entire pond is engulfed. Naturally the workers, the employers, the
community and the nations suffer more or less the industrial dispute
results in huge wastage of man-day and hamper the production. The
workers are also badly affected more than one ways. They loss wages
for striking time. For meeting day to day expenses debts have to be
incurred, employment is lost and future prospects becoming down,
disturbing the family life, personal hard ship mental tension develop
and persist. The unsuccessful strikes leads to financial losses make
workers disappointed and shake their confidence in the trade union.
The employers also suffers heavy losses not only through
stoppage of production, reduction in sales and loss of crushing down
the strikes, engaging strike breakers and black legs, maintaining a
police

force

and

guards,

organizing

counter

demonstration,

processions and meetings of blacklegs or protecting plant and


machinery and for undertaking publicity, propaganda. Besides these
loss of mental peace respect and status in the society is beyond
estimation terms of money.
The Industrial disputes create law and order problem increased
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vigilance on the part of state, causing additional expenditure.

DISPUTE SETTLEMENT METHODS


Dispute is one of the aspects of Industrial Relation HAL as built up its
own tradition in setting of disputes relation an industry. It has developed
its own setting methods. The disputes are settled in three levels.

(1) DISPUTE SETTLEMENT AT THE CORPORATE OFFICE:


There are issues which involves implication of the corporate
level which are usually referred to the corporate office of Banglore
such major issues which have wide implications are sent to the
corporate office for fu rather action e.g. wage revision is done in the
corporate official. In case of new problem the gravity of it is assessed
by the divisional management and then either in it is referred he
head office or reserved for settlement of the unit level itself.

(2) DISPUTE SETTLEMENT AT THE 0 IV IS IONA L LE VEL:


Settlement by agreement - Many of the major problems is
settled by a formal agreement with recognized union. Since there is
only one recognized union in this division getting in to an agreement is
not different across the negotiation table.

(3) UN I LATERAL DIVISIONS AND ACHIEVEMENT BYTHE


MANAGEMENT
This type of settlement is adopted for minor demand: raised by
the union. If the management is convinced about the union's points of

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review then intakes decision unilaterally. This doesn't review any type
of agreement between the management and union. Most of the minor
facilities have been extended to the workman through this kind of
method.

(4) SHOP COUNCIL AGREEMENT:


Shop council was established in 1976 in this division for
ensuring better worker's participation in management. By-today it
doesn't exist.

(5) OTHER METHODS:


Issues are also settled at intervention of the head office, even it is
not a regular pattern of settlement it is carried out where the head office
feels that it mediation if required.
Industrial Relation problems which results in law an order
problem where government feels its intervention is highly essential then
it is settled in such manner.
The Grievance procedure may also be described as system for
handling individual problems.
These are the various stages of which the dispute is settled.
To settle industrial disputes both management as well as workers
involves

settling

it.

In

the

organization

there

are

various

methods/committees where workers can participate. Out of this


collective bargaining one of the methods.
The researcher has observed that in this organization there are
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minimum industrial disputes.


In its life time on two strikes have occurred first in the year 198182 and another in the year 1988.lt was preceded by lockouts. Except
these two disputes these has been no major disputes in the
organization.

IMPLEMENTATION OF AGREEMENTS
After collective bargaining both party reach to agreement where
the negotiation takes place. The agreement plant level is done by the
recognized union. In the organization the recognized union is
Hindustan Aeronautics Majdoor Sangh. After completion of the
negotiation. The agreements are implemented by the management.
Industrial Peace and harmony has remained at its best H.A.L, KD,
since its inception. The continuous appraisal of the industrial relations
climate in H.A.L.KD shows that very cordial and harmonious industrial
relations are maintained in the division since its inception till date.
During all these years, the division has experienced two strikes and
one lock out, except, the same there has not been any instance of
breaking down of industrial peace (Relations Machinery).The details of
the above two strikes and one lock-out are as follows:
(1) The first strike occurred in the division in 1997. Its duration
was for 7 days. The immediate cause of the strike was improper water
supply to the township maintained by this company. The strike was
resolved with the signing of tripartite agreement after discussion
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across the table between the both the parties and the conciliation
officer. Approximately 10,500 man days were last during the said
strike.
(2) The second strike occurred in the division in 28th December
1980 and continued up to 19th March 1981 for 81 days. The strike
commenced at the cal! Of the ALHALTUCC as protest demanding
priority with the settlement of Bangalore based public sector
understanding BHEL. Since the wage settlement signed by the HAL
prior to it was having a clause providing scope that HAL will reconsider
giving increase wage provided a similar public sector undertaking
signing wage settlement on a later date gives increase of wage to it
worker, Approximately 1,53,9000 man days were lost by the division.

(3) The division experienced one lock-out for 11 days fro 13th
December 1988 to 23rd December 1988.The employees of the shift ke.
Once at the commencement of the shift. Next after lunch break and at
the end of the shift. The standing order provides for late entry into the
factory only at the commencement of the shift i.e, within 15 minutes of
commencement of the shift and with in one hour with the permission
of the departmental head. It was observed by the management that
most of the employees entered the factor late by more than 15 minutes
after lunch breaks. A circular was issued by the management that both
the entry gates will be closed after 5 minutes of closer of lunch break.
This caused wide spread resentment among the employees. The started
tool down strike from 8th December 1988 and the employees planned
to take lunch in the subsidized canteen managed by HAL emeses on
12th August 1988.The coupons for lunch were sold in huge quantity.
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During lunch hour employee: in large gathered in the canteen and


started throwing food I plates, utensils, furniture, etc. and abused the
canteen staff. There was total lawlessness in the canteen. The senior
officer including the Additional General Managers, Industrial Relations
Managers rushed to the canteen to pacify the unruly mob and control
the situation. The situation worsened and the Additional General
Managers, Senior Administrative Manager; and other senior officers
were manhandled. It became impossible to restore normalcy in the
factory.

As a result

of such

deplorable

and violent

situation

management was concerned to declare lockout with effect from 13th


December 1998.

DISCIPLINARY PROCEDURE IN HAL


HAL CONSUCT DISCIPLINE RULES
"Conduct Rules" and "Disciplinary action rules" applicable 0 the
employees in the company not covered by the Industrial employment

(Standing Orders) Act, were introduced in the company during the


year 1967. These rules as amended from time to time continued in
operation till the year 1984. PUNISHMENT:
The following punishments may for good and sufficient reasons be
imposed on an officer by the competent authorities empowered to
impose such punishments under this rules.

(1) MINOR PENAL/TIES


Censure
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Recovery from an officers pay of the whole part of any loss


caused to the company in account of his negligence, default
or orders of the company,
Post- pone of increment of pay without cumulative effect for
not more than one year

(2) MAJOR PENALTIES:


Reduction to a lower stage in the same scale of pay,
Reduction to a lower scale of pay grade or post.
Postponement of increment of pay for more than one year
with cumulative effect.
Compulsory retirement.

(3) EXPLANATION:
The following shall not amount to penalty with in the meaning of
this rule:
(a) NON- PROMOTION OF AN OFFICER:
Whether in a substantive or officiating capacity after
consideration of his case to a grade or post for promotion to
which he is eligible.
Reversion of an officer official ting in a higher grade or post
to a lower grade or post on the ground that he is considered
to be unsuitable (or such higher grade or post or in any
administrative ground unconnected with his conduct.

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Reversion of an officer appointed on probation to any grade


or post to his previous grade or post or post during or at the
end of the period of probation in accordance with the terms
of his appointment or the rules and orders governing such
probationary,
(b) TERMINATION OF THE SERVICES
Of an officer appointed on probation during or at the' end of
the period of his probation in accordance with the terms
and conditions of his appointment or the rules and orders
governing such probation or,
Of a temporary officer in accordance with the provision of
his appointment, or,
Of an Officer employed under a contracting accordance
Of an officer as a result of retirement/premature retirement.

PROCEDURE FOR DISCIPLINARY ACTION:


Where disciplinary action is to be taken against an officer under
Rule-11 the following procedure will be followed,
Investigation,
Charge sheet.
Enquiry.
Witness,
Common proceedings,
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Final statement.
Report to the enquiry committee,
Order by competent authority,
General

CASE STUDIES OF DISCIPLINARY ACTION


Disciplinary Action is to be taken as corrective measure against
delinquents. Timely action will stream Line the activities of all
concerned and build up moral inside any industry. Such typical cases
of discipline are given below.
Case Number:
A case study relating to proxy punching of cards. An employee I x I
proxy punched the time card of another employee thereafter punched
his own time card. At that time the other employee was not present.
Deputy Manager of security and vigilance Department 'Proposed to
issue charge sheet on 28/03/95 to the delinquent employee stating
that "you were caught by vigilance staff while proxy punching the card
and therefore you are called upon to explain in writing the aforesaid
misconduct with days of charge sheet."
In his explanation the worker has derived the charge against him.
The past record was without blemish. Deputy General Manager ordered
to conduct enquiry and consider another Deputy Manager (Personnel
Department) to be enquire officer. Then the person concerned wrote an
application he personnel department to go through his past 20 year
record.
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The personnel manager was not satisfied with his explanation


that it has been decided to constitute and fixed the time of enquiry.
The Deputy Manager again sent a letter to the delinquent employee to
choose the co-workman, wit ness before the date of enquiry, sent
another better shop floor to free the witness of delinquent employee for
attending domestic enquiry.
The enquiry proceeding started on the first day proceeding i.e.,
5.6.95

following

members

were

present

i.e.,

enquiry

officer,

management representative, charge sheet employee and co workman.


Management representative then gave explanation. The co-workman
was cross examined. T he management witness have also cross
examined by co-workman.
At last deputy manager gave his conclusion that the delinquent
employee is guilty of the charge of deliberate proxy punching of time
card of other employee. It may also to mention that the delinquent
adopted delivery tactics to prolong the enquiry which resulted delay in
completing proceedings. The personnel manager then sent a letter to
the delinquent that, "taking in to account considering gravity of
misconduct proved your past record of service has ordered that the
punishment i.e., RS.50/- be imposed

COLLECTIVE BARGAINING: A STUDY IN H.A.L., KD


INTRODUCTION
Negotiation about working condition and terms of employment
between a group of employers on one hand and one or mo
representative of workers organization on the other is known as
collective bargaining.
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According to the Encyclopedia of Social Science, "Collective


Bargaining is a process of discussion and negotiation between two
parties, one or both of whom is a group of persons acting in concert.
The resulting bargaining is an understanding as the terms and
conditions under which a continuing service to be performed. Mo re
specifically collective bargaining is procedure by which employers and a
group of employees a group on the conditions of work"
In short it can be said that it is a technique adopted the
organizations of workers and employers collectively resolve their
existing or future differences with or without the assistance of third
party. Its ultimate aim is to reach some settlement acceptable to both
the parties involved labour management relations, although each of
them may try imposing its own terms upon the other through pressure
tactics and negotiations. The Assistance Administrative Manager head
this section and he is in charge to conduct bargaining session with
trade union.

POLICY

OF

H.A.

REGARDING

PROCESS

OF

COLLECTIVE BARGAINING ADOPTED IN HAL, KD


It was found from the practice that the following processes of
collective bargaining are adopted in H.A.L, K D.
(1) AGENDA OF DEMANDS:
It starts with the agenda of demands from the side of the Trade
Union; the Industrial Relation Departments scrutinized the demands
and try to resolve/eliminate the demands which can be solved by
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them.
(2) CHARTER OF DEMANDS:
After scrutinizing the demands, the charter of demands are jot
out, keeping the said policy in view.

(3) DATE AND TIME AND PLACE OF BARGAINING:


Management fixes the date, time and place of bargaining and
decides the negotiation team for bargaining.
(4)COMPOSITION OF NEGOTIATION TEAM:
HAL is not hardly a permanent negotiation team, there parity in
the side of both teams, the teams are composed according to the
nature of issue discussed. From union sit more or less the key office
bearers of the union representatives. From the management side top
management people are the bargaining agent, assisted by supporting
departments and advised by industrial relations departments whoever
required.
(5) BARGAINING:
The bargaining is carried out by demand from one side and
counter from the other side
(6)SETTLEMENT:
When both the parties agrees, a settlement is reached is signed by
the chairman and by both parties. The settlement s valid for a
particular period and no party can alter the agreement without the
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approval of other party.


The researcher has observed that the union is headed by literate
and efficient persons. The trade union leaders and management are
equally strong so far is collective bargaining s concerned, this creates a
healthy atmosphere for collective bargaining. Further -the management
of HAL and its trade union not only sign the collective bargaining in
words but also fulfill them in deals.' The researcher is of view that the
collective bargaining in HAL is quite successful.

WORKER'S PARTICIPATION IN MANAGEMENT:


The term participation has different meanings for different
purposes

in

different

situations.

According

to

Keith

Davis

"participation is the mental and emotional involvement of person in a


group situation which encourages him to contribute to group goals and
share responsibilities with them. Workers Participation in Management
decision making is highly complex concept. The Philosophy underlying
worker participation stresses.
Democratic participation in decision making.
Maximum employee-employer collaboration.
Minimum state intervention.
Realization of a greater measure of social justice.
Greater industrial efficiency.
Higher level of organizational health and effectiveness.
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OBJECTIVES

OF

WORKER'S

PARTICIPATION

IN

MANAGEMENT
To create uniform approach of employer and workers in
various

matters

of

common

interest

through

direct

negotiations.
To establish cordial industrial relations and permanent
industrial peace.

WORKER'S PARTICIPATION IN MANAGEMENT IN HAL,


KD
Worker participate in decision-making process through various
forums which are made available at HAL, KD are a follows:
(1) SHOP COUNCIL:
This

is

non-statutory

bi-partite

committee

dealing

with

production level of the organization. The worker representatives of the


form are nominated by Trade Union.
(a) OBJECTIVES OF THE SHOP COUNCILS:
The objective of the shop council is to evolve smooth execution of
works through census made by representatives of the workman and
the management so as to avoid disputes and to improve productions
and productivity. The issues, which an discussed in the shop councils
are
Productions programmed, task and achievements,

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Productivity achievements.
The areas requiring improvement in methods, progress and
layout.
Shop practices requiring improvements.
Loss of safety appliance.
Discipline.
Plant maintenance.
(b) CONSTITUTION OF SHOP COUNCILS:
Both the workman and the management represent the shop
councils. In the council the ten members each represent the
management as well as the workman. The representative of the
council.

2) SAFETY MANAGEMENT COMMITTEES:


The committee deals with safety provisions of the organisation.
The worker's representatives are nominated by trade union.
a) OBJECTIVES OF SAFETY MANAGEMENT COMMITTEE IN HAL:
The objectives of the safety committee are to discus and lay down
the policies for safety of industrial workers. The decisions taken by the
safety committee is advisory in nature and final authority is vested on
the management.

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b) PRACTICE OF SAFETY MANAGEMENT COMMITTEE IN HAL:


Regarding the functioning of the safety committee and successful
implementation it can be said that since the formation of the
committee till date, numerous meetings of the committee is held.
Follow up action are taken depending on the basis of conclusion of the
safety committee. This meetings aim is to provide as much as
precautionary measures needed to prevent accident.
It should be noted that in HAL workers are given little
responsibility in the safety committee. Yet it is forum of participation
because

management

consults

with

the

union

before

the

implementation of safety measures. In HAL the safety committee


functions in consultative type of participation.
(c)CONSTITUTION OF SAFETY MANAGEMENT COMMITTEE:
H.A.L. is having a safety committee, which was established in
1969.The composition of the safety committee includes the members
from the management only. However some trade union office bearer is
allowed to sought loop holes in regard to the safety measures. The
factory manager is the chairman of this committee and the chief plant
engineer is the vice-chairman. The safety engineer is the secretary of
the safety committee.
(3) GRIEVANCE COMMITTEE:
The committee deals with grievance of the worker in the
organization and redresses the grievances as soon as possible. The
representatives of workmen are nominated by trade union.
(a) CONSTITUTION OF GRIEVANCE COMMITTEE IN HAL:

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From management side Deputy General Manager who is the


permanent

chairman

of

the

grievance

committee

and

Senior

Administrative Manager who is the secretary of the grievances


committee. The representative of the trade union, one must be an office
bearer and other be a departmental representative or executive body
member in the department in which the aggrieved is working.
(4) HOUSE ALLOTMENT COMMITTEE.
The committee deals with allotment of quarters to the workers in
township. The worker's representative of the committee is nominated
by the trade union.
(a) CONSTITUTION OF HOUSE ALLOTMENT COMMITTEE:
House

allotment

committee

is

bipartite

in

nature.

The

management nominates their representatives of the management and


the president of H.A.E.W.F nominates the union representatives. The
committee meets once in every month. The meeting decisions are taken
in majority votes. But the decisions are advisory and communicative in
nature. The final authority is vested on the General Manager.
(b) PRACTICE OF HOUSE ALLOTMENT COMMITTEE:
This committee is functioning well with the participation of the
union. It is so effective the hundred of houses are allotted to the
employees. With the increased number of employee many houses are
under construction and its allotment is a big challenge to the
committee.
(5) HINDUSTAN AERONAUTICS SPORTS CLUB:
The club has set up to facilitate sport and games t he township.
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The

workmen

representatives

of

the

club

are

nominated

by

management.
(a) OBJECTIVE OF THE H.A.L SPORTS CLUB:
The aims and objectives of the sports club are to promote and
faster fellowship. Physical cu1 true, athletic outdoors and indoors
games.
(b) CONSTITUTION OF THE SPORTS CLUB COMMITTEE:
The management of the club is vested in a management
committee consisting of the fourteen members given below:
President
Two vice-President
Two secretaries
Honorary Treasurer and eight members
Out of the fourteen members are nominated by the management,
including the President and ten members elected by the general body
at least once in a month or as and when it is necessary.
(c) PRACTICE OF SPORTS CLUB COMMITTEE:
When we take the general view of the club, it can be said that the
committee is functioning with co-operation between the union and the
management representative effectively.
(6) HINDUSTAN AERONAUTICS CONSUMER CO-OPERATIVE STORE
(HACCS):
The store supplies essential commodities to the employees and
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employers of the organization, the workman representative of the store


are elected.
(a) OBJECTIVES OF H. A. CONSUMERS COOPERATIVE STORES:
The objectives of society are to provide essential commodities at a
reasonable rate.
(b) CONSTITUTION OF H. A .CONSUMERS CO-OPERATIVE STORES:
The committee is being administered by a Board (Directors
consisting

of

nominated

members

including

chairman

from

the

management and elected members by the members of the consumer's


society. The company provides transport facilities free of cost to bring
ration articles.
(7) WORKS COMMITTEE:
As per section 3 (i) (ii) of the Industrial Dispute Act 1947,any
industrial establishment in which one hundred or more workmen are
employed or have been employed on any day of he proceeding twelve
months have to constitute works committee
(a)OBJECTIVES OF WORKS COMMITTEE:
The objective of the work committee is to promote measures for
security and Preserving amity and good re a t ion s between the
employers and the workmen and to end comment upon matters of the
common interest.
(8) HINDUSTAN AERONAUTICS EMPLOYEES WELFARE. FUND:
This welfare

fund is

invested

for

entertainment,

training & such other facilities for the people in the organisation.
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(a) OBJECTIVES OF H, A .EMPLOYEES WELFARE FUND:


To supervise and to provide adequate welfare facilities. A welfare
fund committee is constituted for smooth execution of employee welfare
fund.

(b) CONSTITUTION OF H.A.L. EMPLOYEES WELFARE FUND:


The welfare fund is administered by welfare committee constituting
of eight members. It is the bipartite committee having representatives
from both management and union. Out of sight members, five members
including the chairman are nominated by the management and other
three members are elected members by a general meeting by the worker.
Out of these selected members committee, the management elects vice
chairman, a secretary and treasurer, who hold office for a period of two
years and eligible for re-election. In the meeting of the committee the
matter discussed are regarding the administration of the existing,
scheme, finance, opening a new schemes, etc. the decision a re taken
depending 011 the majority of vote. The decisions an sometimes
administrative and sometimes advisory in nature.

(9) BENEVOLENT FUND:


On 23rd May 1968, the management had introduced the de a t h
Relief Fund Scheme in HAL. But after some years this scheme seized to
operate due to certain reasons. it was reconstituted in 1973 as
benevolent fund and the first election was held in May 1974.lt was a nine
member committee who are only from the workmen's side. The election is
done in two years.
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(a) OBJECTIVES OF THE BENEVOLENT FUND COMMITTEE:


The objectives of the committee are to provide "financial assistance
to the families of any members of the fund on intimation of his/her
death. For some specific purpose the committee forms sub-committees.
The sub-committee is dissolved for the purpose is over.
(b) PRACTICE OF THE BENEVOLENT FUND COMMITTEE:
The committee is functioning very well. In addition to annual
membership fees, other funds are collected through charity fund, cycle
stand fees, films shows and other sources of assistant to provide more
financial benefits to the decease person's family. The participation
between management and workmen in this area is only information
sharing.

FUNCTIONING OF QUALITY CIRCLES IN HAL,KD


In H.A.L, KD the Quality Circles were started in year 1986, wit h
the initiative taken by the General M Sri B.Haridas. Initially two pilot
circles
were launch 20th and 28th of November 1986. Quality Circle NO.1
in Foundry shop and Quality Circle NO.2 in Blades shop (Turbine
section) with 11 members each.
At present 33 Quality Circles are in operation in division in both
technical and non-technical areas.
H.A.L, KD has undertaken the following quality promotional measures:
Promotion of T Q M concept among the employees.

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Quality Circle Movement.


Self-inspection.
Propagation of zero-defect concept.
Massive training programmes on quality awareness.
Motivation

of

employees

towards

better

participation

suggestion schemes.
Regular

on

going

audits

recommendations.

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OBJECTIVES OF QUALITY CIRCLES FUNCTIONING IN


HAL, KDReduce errors and enhance quality, productivity safety cost
effectiveness. 'Enrich the quality of work life of employee. Provide
creativity opportunity to employees. Build an attitude of "Defect
Prevention". 'Promote job involvement and participation. 'Increase
employee motivation. 'Improve communication in the organisation.
'Develop

greater

quality

awareness.

'Promote

personal

and

leadership development.

STRUCTURE OF QUALITY CIRCLES IN HAL,KD


For the successful operation of quality circles in any organisation.
one of the major factor necessary in the structure of quality circles and
the functional supports between its different elements. There are many
quality circle structures available which is followed in different
countries. Below is given the organisation structure of quality circle
found from our experience in Indian context, which is also found in
studied organisation, HAL, KD.

GRIEVANCE

HANDLING

PRACTICES

AT

H.A.L,

KD

INTRODUCTION:
There was no golden age where grievance was absent in n d us
tries. Industrial disputes have their origin in grievances. The grievances
are potential agencies which are generating friction and conflict
threatening harmony and understanding of the practices. Even in best
managed companies dissatisfaction of employees would occur. Despite
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efforts of all concerned, it is not possible to avoid grievances altogether.


Grievances are an important index of state of organizational health.
According to Michael Jucious,"Grievance means any discontent or
dissatisfaction whether expressed or not Jettier valid or not, arising out
of any thing connected with company, that an employee thinks, believes
or even feels to be unfair, unjust, or inequitable."

GRIEVANCE PROCEDURE IN THE PLANT PRESENTATION


OF GRIEVANCE BYWORKMEN:
(A) FOR WORKERS /WORKMEN OF SCALE 1 TO 10 :
STAGE-I:
Workmen who have a grievance on matters enumerated about hall
present his grievance in writing in duplicate to the sectional head, who
shall meet the concerned workman and give his decision in writing
within six days of the grievance.
STAGE-II:
If the sectional head either fails to give the decision with i n the
prescribed time or the workman is not satisfied with the decision of the
sectional head, the workman concerned may present his grievance in the
form to the departmental mental head concerned in duplicate through
section lead who have the decision at the first stage. The departments
head shall after giving a personal hearing to the aggrieved workman in
the presence of sectional head concerned give decision in writing within
ten days of the date on which if sectional head receives the grievance.
During the persons hearing, the workman shall have the option of being
assists by co-workman of the concerned department. In examining the
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grievance, the departmental head may, where necessary consult the


concerned specialist departments/officers in order to settle the grievance
at this level. If the departments head feels that he could settle the issue
at this level, he may, if necessary, extend the period by further two days
under intimation to the workman who has represented the grievances.

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STAGE III:
If the departmental head fails to give a decision within the stipulated
period, or if the aggrieved workman is not satisfied with the decision
given by the departmental head, the aggrieved workman may send a
representation to the secretary of the grievance committee for the
redressed of the grievance. A copy of the representation is to be sent by
one workman to the departmental head who gave the decision at the
second stage. The grievance committee will call for records relating to the
consideration of the grievance at the first and second stage and carefully
examine the grievance in consultation with the specific officers. If any
concerned giving personal hearing to the aggrieved workman and give its
decision within fifteen days of the date on which the secretary of the
committee received the grievance from the concerned workman unimous
decision of the committee regarding redressed of the workman's grievance
shall be implemented, here is no unanimity in the committee in regard to
the redressed of the grievance of the workman, the workman concerned
would be informed at the gist of the views expressed in the committee.

STAGE-IV:

PETITION TO GENERAL MANAGER:


If the workman is not satisfied with the decision of the committee,
he may prefer a petition to the General Manager concerned for
redressed of his grievance. Employees at head office and officers of
Managing Director's may present petitions in such cases to chairman.
A copy of the petition is to be forwarded by workman to secretary of
grievance committee. The General Manager in case of divisions, the
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Managing Directors in case of officers of Managing Director and


chairman in case of staff at head office would then, if necessary, after
giving a personal hearing to the aggrieved workman, gives his decision
with in 30 days of the receipt of petition.
STAGE-V:

APPEAL ON DECISION OF GENERAL MANAGER:


In the case of divisions, if the aggrieved workman is not satisfied
with the decisions of General Manager the recognized union may, if it
so desires take of the case with the concerned managing directors with
in 30 days. From the date of decision of the General Manager, the
Managing Director after resuming the case will give his decision with in
30 days from the date of' receipt of the unions representation. The
decision of the Managing Director will be final.
This is the formal grievance procedure followed by the company
for redressed of grievances of a person. Informal grievance procedure is
totally prohibited.
Each grievance should be redressed with in prescribed time limit
but due to some practical difficulties that in absence of chairman,
management representative and union representative in proper time
some cases require years together for redressed.
HALF YEARLY REVIEW:
The decision taken there on. If certain grievances are observed to
have arisen repeatedly then action is initiated to prevent occurrence of
such grievance in future.

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The Grievance Redressed procedure in H. A. L is codified and also


willingly accepted by the employees and the union. However most of
the grievance gets resolved at the initial stages and very few reaches
the higher stages. Thus, t he system is highly influential and also
successful am harmonious climate prevails in the organization.

ROLE OF UNION IN THE FORMULATION OF GRIEVANCE


PROCEDURE:
In consultation with the union, grievance procedure has been
formulated. Union has been consulted in this regard. In H.A.L most of
the cases are redressed at the first and second stage and only a few
cases refer to grievance committee and rare cases to the forth stage i.e,
General Manager.
b) FOR OFFICERS OF GRADE I TO VI:
For these personnels, the Grievance Redressed committee is
constituted by AGM (Additional General Manager) and Administrative
Head of the Division. The chairman of the Committee is the AGM. The
Administrative Head in the Division is the secretary of the committee.

PROCEDURE:
STAGE -I:
The aggrieved officer in Grade I to VI shall present his grievance
in writing giving full details of his grievance to his Divisions Head in
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Grade V / VI, who then needs the concerned officer in presence of the
officers

immediate

superior.

After

learning

the

Grievance,

the

Divisional Head must give his decision within 15 days of the receipt of
the grievance, if necessary, he may consult the chief of the
Administration department or Finance or Management Services
Department etc. Officers of Group Viand others reporting to GM
directly, may forward the grievance to the Grievance Redressed
Committee for consideration.
STAGE -II:
In case the Divisional Head fails to give his decision within the
stipulated time or if the officer is not satisfied with his decision, the
aggrieved officer may send representation to the secretary of the
Grievance Redressed Committee with a copy to the Divisional Head.
The committee examines the grievance carefully in relation to that in
the first stage and after consultation may give a personal hearing to
the grievant. The committee gives it recommendations to the General
Manager (GM) within one month from the receipt of the grievance by
the committee and the decision of the GM is conveyed to the aggrieved
officer within one month from date of receipt of recommendation from
he committee. The decision of the GM will be final.
STAGE -III:
In exceptional case if the aggrieved officer is not satisfied with the
decision of GM, then he has the option to appeal to the concerned
Managing Director (MD). Decisions of such appeals will be taken within
one month from the date of receipt of the appeal. Decision of the MD
will be final and binding. The MD may consult the corporate office, if
necessary, before disposing off the appeal to the concerned officer.
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CHAPTER-V
CONCLUSION AND SUGGESTION
In the forgoing chapters discussions have been made about
different aspects of industrial relations in practice at H.A.L.However, in
this chapter, the researcher tried his best to tie up loose ends in order
to draw certain meaningful conclusions about the I.R Practices in the
organisation.The style of management, of H.A.L,KD can be considered
as participative type.
A critical evaluation of the organizational structure revealed that
the personnel department is not totally independent one. But the
structure neglects the function like manpower planning, scientific
recruitment, etc. Though the organization claims to have a pyramidal
structure but it is not actually so. At some level there are deficit
manpower & at some level there are surplus manpower which is not
conducive at its efficiency.
So it may be suggested that the manpower planning & forecasting
should be done strictly & properly .Departments have to be equipped
with adequate number of qualified professionally competent personnel.
WELFARE:
There are namely 72 welfare measures provided to the employees
as well as to the executives of H. A. L, KD. Sti11 all the employees are
not satisfied. They opine that though there are not made provisions for
all facilities neither the same are provided regularly nor are they
maintained properly. It has also been marked that all the employees
are provided with housing facilities but no repairing & maintenance
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work is done regularly. SO, the management should take due steps for
the effective use of welfare measures.
TRADE UNIONISM:
At present there is only 2 trade unions functioning of which only
one is recognized, and all the workers are the member of the
recognized union. Generally, the unions are leader centered, so the
rank & file members are indifferent to the union activities. So, it may
be suggested that every member should be allowed to participate in the
union activities.
INDUSTRIAL DISPUTES:
Since last several years, there had been no strikes & lockouts
occurred in the organisation.The climate has been very cool & quite.
DISCIPLINE:
The number of disciplinary cases is not much to cause alarm onto
reflect a highly unsatisfactory state of industrial relations. However, the
management should not be very liberal in dealing with the cases of
indiscipline. And the management should adopt the "Hot Stove Rule"
for prompt redressed of the cases & consultancy in awarding the
punishments.
COLLECTIVE BARGAINING:
Collective bargaining in H.A.L, K 0 is partially successfully. It has
certain

lacunae

like

mutual

distrust

between

parties

&non-

implementation of decision taken through mutual discussions. Hence,


it may be suggested that the management should try to implement all
the decisions.
THE WORKERS PARTICIPATION IN MANAGEMENT:
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The functioning of various participative forums has particularly


successful in company. This is due to the lack of mutual trust between
the parties. The meeting of these committees is not held regularly.
Quality circle has also been introduced in H.A.L, KO, but by this time,
there are only few among 33 quality circles are functioning regularly.
So, the management should take initiation in this direction &
create interest among the workers & encourage them to participate in
various forms. But over all it is satisfactory.

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CHAPTER-VI
BIBLIOGRAPHY

Books:

Industrial Relations By C.B. Mamoria


Industrial

relations

&

Personnel

Management

By

P.C.Tripathy
Industrial Relations By S.C.Srivastava
Human Resource management By Dr.C.B.Gupta

Journals:
Pragati (Hindi) " a monthly journal published by the HAL,
Koraput Division, Sunabeda-2
Aeroflash, a monthly journal published by the HAL,
Koraput Division, Sunabeda-2

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A STUDY OF INDUSTRIAL RELATIONS PRACTICES IN


HINDUST AN AERONAUTICS LIMITED ENGINE DIVISION,
KORAPUT.

Satya Narayan Meher MBA (HRM)


DDCE, Sambalpur University

QUESTIONNAIRE TO EMPLOYEES
The purpose of this questionnaire is to elicit your opinion in
respect of some elements of Industrial Relation climate prevailing in
your organization. Please assure that the opinion expressed by you will
be kept strictly.

PERSONAL IDENTIFICATION
Name of the Employee
Sex
Age
Educational Qualification
Designation
Nature of the job: Permanent / Temporary
Scale of pay
Department in which he works
Years of experience
Religion
Nationality
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Family status

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QUESTIONARY
a.

Are you satisfied in the organization? (Y/N)

b.

Are you satisfied with the industrial relations? (Y/N)

c.

Are you satisfied with the existing health, safety, and welfare facilities
both with in and outside the organization?

d.

Does the organization have meaningful

and

comprehensive

training programmes for employees? (YI N)


e.

What

aspects

of

industrial

relations

are

prevailing

in

your

organization?
f.

Does your organization comply with the standards of Industrial


Relations? ( Y IN )

g.

Does industrial democracy exist on your organization? (YIN)

h.

Are trade union acting as a hindrance in the success of your


organization ?( YIN)

i.

Are organization policies causing friction between Management and


Workers? (YI N)

j.

What your opinion on grievance handling Machinery?

1.

Satisfactory / Non-Satisfactory

k.

What is opinion on Grievance Handling Machinery?


Satisfactory / Non-Satisfactory.

l.

What is your opinion about Workers Participation in Management?


Satisfactory / Non-Satisfactory

m.

Are you satisfied with conduct of Preliminary Enquire? (Y IN)

n.

Are you satisfied with the functioning of joint forum or not? (Y IN)

o.

Is the Principle of nature justice being followed while conducting any


disciplinary proceeding? (Y IN)
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p.

Is there any recognized union functioning in your organization? (Y IN)

q.

Have you any idea about CB agreement? (Y IN)

r.

Are you satisfied with the functioning of works committee? (Y IN)

s.

Whether workers are allowed to participate in Board of director


meting? (Y/N)

t.

Are you satisfied with the domestic enquiring? (Y IN)

u.

Do you have a time office in your organization? (Y IN)

v.

Whether the trade union is allowed to become any National

Label

Trade Union Organization? ( Y IN)


w.

Is the service of the organization affected by absenteeism of workers?


(Y IN)

x.

Whether outsiders are allowed to become the Trade Union leaders in


your organization? ( Y IN)

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