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MANAGEMENT OF INDUSTRIAL RELATIONS (OBHRD-6)

Unit 1
Q.1:- Elaborate the perspective scenario technology with reference to
industrial relations.
Or
Is technological change affect the industrial relations? If yes, how industrial
relation is being affected by technology in India?

Ans:- Industrial relations is an expression used not only for relationship between
employer and trade unions but also involving government with the aim of defining
policies, facing labour problems.

Industrial relations include following concept.

1) Rules for employment management
2) Rules and regulation.
3) Role of State Government bodies.
4) Harmonious relations and technology.

Industrial relations and technology.

Yes, Technological change affects the Industrial Relation. IR impact
with information and communication technologies, their traditional framework is
deeply changing. In fact:-

a) Horizontal and pervading all sector, more & more reciprocally linked.
b) Dynamic, rapidly innovating.
c) Labour and capital saving and principally flexible (Suitable for many
purposes)
Such changes themselves reflect at industrial or organisation levels well as at the
single job level. At the organisation level professional requirements, the work place
environment, health and safety in the workplace, work satisfaction, working hours,
which can be modified considerably for technological change. These changes can,
in fact be even more striking in newly founded industries that in corporate the latest
technological developments and working organisation models which are quite
different from those already operating in the same sector, division classical studies
on technological innovation have focused on lack of direction in technological
planning as a whole and disregard for the impact of any mutations, the impact on
labour is more the result of a series of decisions made by those directly
involvements introducing new technologies, including those who are responsible for
the introduction of changes, for management norms as well as those who have to
more with a new technologies that the workers and trade unions.

1. Forcing limits of traditional trade union’s strategy

Trade unions in industrialized countries discover their own methods
inadequate to represent different positions and professional novelties from the
labour market. While management strategies and practices often try to change some
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of the rule, or the whole industrial relations system, Trade unions point to
concentrate their efforts on a new confederate organisational system. Trade Union
try to define new strategies facing the problem of companies re-organisation but in a
broader sense. It is also build new-styled agreement in socio-economic framework.
2. Tele work and new bargaining demand
Technological innovations, linked to network and multimedia work
development clearly emphasis meanings and forms of distance working. During the
recent past, at organisational level, Tele work has enlightened a need of a flexible
and centralized management at the workforce, asking for a precise individualization
of formal relationship between parties, usually determined by national labour law.

Factors influencing technological change.

1. Type of technology used.
2. Rate of technology change
3. Research and development
4. Status level in organisation
5. Government rules.
6. Culture
7. Market

Factors influencing industrial relation.

1. Institutional factors
2. Economic factors
3. Social factors.
4. Psychological factors
5. Political factors
6. Global factors.

Conclusions:- Technological change affect the industrial relation

Q.2- Discuss the role of state in Industrial Relation in India.

Ans:- Introduction: According in all industrialized developing and underdeveloped
economies steps have been taken by the State to promote a healthy growth of trade
union and set up a well- organized individual relations machinery to achieve
industrial peace.

(A) The changing Role of the State Govt.

The government has played at least six roles in industrial relation in India.
There are:-
i) Laissez faire:
During the 19th century, the government played a laissez faire role in industrial
relations. Under laissez faire the workers and employees were left alone to manage
their affairs.
ii) Paternalism:
By the end of 19th century. The laissez faire role of the government was
replaced by paternalism. Thinkers like Robert, Rusin and others attracked the
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attention of the public & the government towards the human working conditions in
factories, mines and plantations. The govt. had also set up a Royal Commission on
labour (1929-31)
iii) Tripartism :
Tripartite form of consultants on the model of the ILO conference. After
independence several such forms were formed. The major tripartite bodies formed:-
Indian labour conference, standing labour committee, industrial committees for
specific industries etc.
iv) Encouragement of voluntarism: -
The government also promotes voluntarism involving a serious of code to
regular labour management relations.
These codes include codes of discipline, code of conduct and code of
efficiency and welfare. Specifically the code of disciplines encourages voluntary
arbitration and helps in maintaining discipline at workplace.
v) Interventions:
The government also plays an interventions role. The intervention is in the
form of cancellation and adjudication the industrial dispute Act, 1947 provide such
measure to intervene in industrial disputes.
vi) Employer:
The government also plays the role of the largest employer. The performance
of this role influences labour policy also. Obviously the government takes into
consideration the interest of public sector while framing its policy.
2. Evaluation of industrial relations policies:
i) In pre-independence India:
Industrial relations had its beginning when the British Government in India
was constrained to protect its commercial interest in this country. An ILO observes,:
For protecting the interest of Labour, employees and workmen Act of 1860.
According to Dr. B.R. Ambedkar (1942)
“The policy of bringing together the three parties, namely the government
management consultative tripartite forum for all matters of labour policy and
industrial relations was accepted.”
Other important Act:
1920 Bombay Committee
1931 Royal Commission on labour
1935 Government of India
1938 Bombay Industrial Disputes Act,
ii) In Post-Independence India
In free India, the Industrial disputes act in 1947 the main aims to maintain
harmonious relationship between workers and workers, employees to worker,
employees to workers.
In 1950 the bills were passed by the government.
A Labour Relations Bill and a Trade Unions Bill
iii) Industrial relations policy during the plan period

Directives the principles The plan documents

Of State policy
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The Directives principles of State Policy

S.No. Article Reads as follows
A Article 39 Equal work for both men & women
Health and strengthen workers
b. Article 41 Economic Capacity
Right to work, to education
c. Article 42 Human conditions of work and maternity relief.
d. Article 43 Living wages
Social and cultural opportunities
e. Article 43A Development
Workers participation management

The plan documents:

a) The first five year plan (1951-56)
According to this First Five year Plan emphasized the need for industrial
peace in industry and maintain harmonious relationship between capital and labour.

The main aims:- workers right to association providing healthy, lawful action,
educational systems.
b) The second five year plan (1956-61)
According to this plan-“Creation of industrial democracy is prerequisite for the
establishment of a socialist society “ Under this plan – emphasis industrial peace. A
series of voluntary arbitration, code of discipline, code of conduct etc.
c) The third Five year plan (1961-66)
According to third plan emphasized the economic and social aspects by
industrial peace. (Industrial trade Resolution Act 1962 set up).
d) Four five year plan ) 1974-79)
Under this plan to improve legislation, welfare of workers, working and living
conditions, fair wage, arrangements for skills training, labour research etc.
e) Fifth five year plan ( 1974-1979)
Under this plan stressed the need for greater involvement of labour by
ensuring its vertical mobility in industrial organisations.
f) Sixth (1980-85) and Seventh (1985-90) five year plans
According to both plants- the important goals of improving the conditions of
working class, workers participation productivity improvement etc.
g) Eight five year plan (1992-97)
Under this plan emphasized – workers participation in management, skills,
training, informal sector etc.

Other Act set up during plans:

(1969) National Commission on labour recommendation
(1991) New Industrial policy:- based on two perspective management , labour etc.

Conclusions: - The role of Industrial relation in India continuous improvements and

protection in workers.
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Q. 3 Why discipline is important in industry? Discuss the

code of Discipline in industry.

Ans:- Introduction:- Discipline is very essential for a healthy industrial atmosphere

and the achievement of organisational goals. Discipline in industry may be described
as willing cooperation and observance of the rules and regulations of the
organisation. Discipline is essential to a democratic way of life.

According to Brembless: “ Discipline does not mean a strict and technical

observation of rigit rules and regulations. It simply means working, co-operating and
behaving in a normal & orderly way, as any responsible person would except an
employee to do”

Importance of Discipline in industry.

Discipline is the very essence of life. The goals or objectives of industrial
discipline should be clearly stated.

 To ensure that employers & employee recognize each others rights and
obligations.
 To promote constructive cooperation between the parties concerned at all
levels.
 To maintain discipline in industry.
 To secure settlement of disputes & grievances by negotiation, cancellations
voluntary arbitration.
 To eliminate all forms of coercion violence in industrial relation.
 To avoid work stoppages.
 To facilitate the free growth of trade unions.
 Respect for the human personality.
 Management personnel should set high standards.

Discipline is the very precious step in life everywhere and every place. An industrial
organisation is an organic whole in which a variety of forces act in union towards the
attainment of its ultimate aims. Obviously, smooth and effective functioning demands
a high degree of co-ordination among the various elements which from integral pacts
of an organization. In an industry big or small manpower is the major factor.
Manpower can be used effectively only if there is discipline in the industry. Maintain
of discipline is a prerequisite for the attainment of maximum productivity not only of
the workers but also of the whole nation. In this way discipline is important in
industry.

Introduction:
In India, the problem of industrial discipline was debated by the Indian Labour
Conference held in1957. in conference noted the record of discipline by employers &
employees. A sub-committee was appointed to draft a model code of discipline,
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which would be acceptance to all. Indian Labour Conference discussed 3 draft

codes including:-

 A ‘Code of Conduct’ to regulate inter-union relations.

 A ‘ Code of Discipline’ to regular labour management relations.
 A ‘ Code of Efficiency and welfare’ for laying down norms of productivity and
labour welfare. The four central organisation of labour then representing an
Indian labour conference including (INTUC, AITUC, HMS, UTUC) agreed to
comply with the code. The adoption of ‘code of discipline ‘ was announced in
June 1958.
Importance of code of discipline in industry.
To maintain discipline in industry the main objectives of code are:-

 Maintaining peace and order in industry.

 Recognize the rights and responsibility of each other.
 It prohibits strikes and lock-outs.
 Facilitating a free growth of trade unions.
 Settlements of disputes
 Union will discourage of duty damage to property, careless operation in
subordination and other unfair labour practices on the part of workers.
 Avoiding work stoppages in industry.

Thus the code of discipline consists of three sets of principles – Obligation to be

observed by management, obligation to be observed by trade unions.
Code of discipline has been helpful in improving industrial relation in the
country. The code of discipline is a major step in establishing orderly atmosphere in
the industrial unit.

Q.4 “To often discipline is thought of only in the negative

sense. In reality positive discipline is more effective and
plays a longer role in business”
Discuss the statement and point out the approach,
principles, and procedures to be borne in mind while
taking the disciplinary action.

Or
Briefly discuss the responsibility of discipline. What are
approach, principle procedures of industrial disciplinary
action.

Ans:- Discipline is the orderly conduct of affairs by the members of an organisation.

There are two aspects of discipline
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Positive and negative aspects.

Positive aspects:-
Positive discipline can be achieved through rewards and effective leadership.
Positive discipline promotes cooperation and coordination with a minimum of formal
organisation. It reduces the need for personal supervision required to maintain
standards.

Negative aspects:
Negative discipline is traditional concept and is identified with ensuring that
subordinates adhere strictly to the rules and punishment, is meted out in the event of
indiscipline.

A Explain approaches:-
Basically, there are five approaches regarding to manage indiscipline or misconduct.

1) Judicial Approach-
It is commonly followed in India. The present day manager has to handle a
variety of disciplinary issues. His right to hire and dismiss is curbed to a great extent,
especially where unionized employees are concerned. The complexity is increased
in this arbitrary managerial function due to intervention by the government by
providing legislation for governing terms of employment.
2. Human Relation Approach:-
Human relation is a systematic developing body of knowledge devoted to
explaining the behaviour of individual in the working organization.
3. Human Resources approach:
The approach calls for treating every employee as a resources and an asset
to the organisation before punishing the workers, the cause for indiscipline has to be
ascertained.
An analysis of the cause is made, to find out whether indiscipline is due to the
failure of his training & motivating system & the individual’s own failure to meet the
requirements, and accordingly corrections are made.
4. The group discipline approach
The management is this approach sets and conveys well established norms
and tries to involve two group of employees. The group as a whole control
indiscipline and awards appropriate punishment. The trade under may also act as a
disciplinary agency.
5. The leadership approach:
Every supervisor or manager has to guide, control, train, develop, lead a
group and administer the rules of disciplines

B) Principles for disciplinary action:

Best effects, act of indiscipline occurs and it becomes necessary to take a
disciplinary action. Following principles are:-
1. Principles of natural justice
2. Principles of impartiality or consistency.
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3. Principles of impersonality
4. Principle of reasonable opportunity.

(C) Procedure for disciplinary action

The procedure for disciplinary action involves the following steps:-

1. Preliminary Investigation: First of all a preliminary enquiry should be held to

find out the misconduct behaviour or situation.

2. Issue of a charge sheet: Charge sheet is merely a notice of the charge and
provides two employees an opportunity to explain his conduct. Charge sheet each
charge should be clearly defined & specified.
3. Suspension pending Enquiry:- In case the change is given to the employee
along with charge sheet. According to the industrial employment (Standing order) Act
1946, the suspended workers is to paid a subsistence allowance equal to one-half of
the wages. For the first 90 days of suspensions and third-fourths of the wages for
the remaining period of suspension if the delay in the completion of disciplinary
proceeding are not due to workers conduct.
4. Notice of enquiry:
In case the worker admit the change, in his reply to the charge sheet, without
any qualification. The employer can go ahead in awarding the punishment without
further enquiry. But if the worker does not admit the charge & the charge merits
major penalty, the employer must hold enquiry to investigator into the charge. Proper
and sufficient advance notice should be given to the worker of the enquiry.
5. Conduct of inquiry: The inquiry should be conducted by an impartial and
responsible efficiency.
6. Recording the findings:- The enquiry officer must recordable the conclusion
and findings.
7. Awarding punishment:- The management should decide the punishment on
the basis of finding of an-enquiry. Post record of worked and gravity of the
misconduct.
8. Communicating punishment:- Communicating punishment to the worker
should be communicated to him quickly. The letter of communication should contain
reference to the charge sheet, the enquiry and the findings.

Other red-hut store rule:-

Mc greger has suggested this rule to guide managers in enforcing discipline. The
rule is based on analogy between touching a red-hot store and nothing rules of
discipline. When a person touches a hot-store

 The burn is immediate

 He had warning that he knew that he get burn if he touched it.
 The effect is impersonal.
 The effect is comprehensive with two gravity of mis conduct.
 The effect is consistent every body who touches red-hot store would be
burned.
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Conclusion: If indiscipline occur and it becomes necessary to take a

disciplinary action.

Q.5 Define Industrial Relation (IR). Discuss in detail nature

and importance of IR.

Ans:- Introduction:-
Industrial Relations are viewed as the “process by which people and their
organisation interact at the place of work to establish the terms and conditions of
employment. The process of interaction stressed not just the resulting standard.
Finally, the whole process is viewed as a “system.” In order to emphasis the
interrelation among people their work, organisation and the standards in industrial
management.
Definition:
The term “Industrial Relations” commonly denotes “employee-employer relations” in
both organized and unorganized sectors of the economy. IR is also know as labour
management relations or labour relations, union management, Human relations.
According to J.Henry : “Industrial Relation is an art, the art of living together
for the purpose of production.”
Nature of IR:- Emphasize, IR is concerned with the relationship between
management and workers and the role of regulating mechanism in resolving any
industrial dispute.
1) IR covers the following areas:
- Collective bargaining
- Role of management, unions and government
- Machinery for resolution of industrial disputes.
- Labour legislation
- IR training
- Grievance and disciplinary policy
2) IR is characteristics by both conflict and co-operation. This is the boris of adverse
relationship. So the focus of IR is on the study of the attitudes, relationship practices
and procedures developed by the contending parties to resolve or at least minimize
conflicts.
3) IR is concerned by laws, rules and regulations agreevied conditions, policy
framework, government transactions, co-operation between management and
labour.
4.) To raise productivity to a higher level in an era of full employment by labour
turn over and frequent absenteeism.

Importance of Industrial Relation (IR):-

IR is the key for increased productivity in industrial establishment. IR main objectives
is to protect workers interest and to improve their economic conditions.
1. IR pattern organized sector and its impact on unorganized sector.
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The pattern of IR in the organized sector of economy has a definite impact on

labour- management relations in the un-organized sector. The trends and pattern
established in the organized sector “Spillover” or influences the practices of even the
most unorganized industries. This happen because there is always pressure from a
variety of groups on unorganized firm to match its employment and working
conditions, benefits etc. with that of organized one.
2. Unions are important force in the Indian political system.
The impact of Indian Trade Union on the political system is much wider than
an industry. The Indian trade unions which are a fall-out of the politician system are
invariably used by both the ruling and opposition parties. In addition, the union
sponsored by the ruling party to influence the legislative process through their
interest lobbying activities.
3. Status Difference in the workers of public and private sector.
In India, with the adoption of socialistic pattern of society & subsequent
acceptance of Industrial policy resolution of 1956, the public sector was entered with
the responsibility to accelerate the economic development of the country.
4. Cordial atmosphere.
Good IR not only maintain coordinal atmosphere in industry but also facilities
production and industrial growth.
5. Healthy Labour-Management Relations:
The existence of strong, well-organized, democratic and responsible trade
unions and associations of employers. These Organisations enhance the job
security of employees, help in increased and give labour a dignified role in society.
6. Maintenance of Industrial peace:-
Industrial peace can be largely nurtured through the following means:-
 Machinery should be set up for the prevention and settlements of industrial
disputes.
 The government should have the power to refer disputes to adjudication when
the situation tends to get out of hand and is faced with economic collapse due
to continue stoppage of production on account of long strikes/lockouts when it
is in the public interest to do so during periods of emerging or when there is
fear of foreign attack or when production needs to be carried on without
interruption.
7. Development of Industrial Democracy:
Recognition of Human Rights in industry. Increase in labour productivity. The
availability of proper work environment.
Little to all of us realize that it is the people who creates problem everywhere and it
is only who can find solutions too. If there is a problem from employees there is a
solution also. Viewing every problem seriously & resorting the manipulation style of
IR which emphasis the need of the labour.

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Q.6 Discuss in detail various approaches & parties to IR.

(Perspective/approach)
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Ans:- A few approaches to IR are discussed here in some what greater detail.
(1) Psychological approach to IR.:
The psychologists are of the view that the problem of IR are deeply looked in
the perception and the attitude of focal perception on his behaviour has been widely
studied by Mason tiarie. He studied the behaviour of two different groups namely,
”Union Leaders” and the execution through TAT (Thematic Apperception Test).

For the test a photograph of an ordinary middle-aged person served as input, which
both the groups were expected to rate. It is interesting to note that both the group
rated the photograph in different manner i.e. The Union Leaders referred the person
in the photograph as “Manager” where the group of “Executive” saw “Union Leaders”
in the photograph. The result of study led have to conclude that :-
The general impression about a person is radically different when he is seen
as a representative of management from that of the person as a representation of
labour.
The management and labour see each other as less dependable.
This variance in perception of parties is largely because of their individual
perception. It is for this reason that almost invariably some aspect of the situations is
gloried. Some suppressed or totally distorted by the industrial making a indigenous
in the issue.
2. Sociological approach to IR’s
The industry is a social world in maintain and the workshop is in a reality a
community made up of various individual and groups with differing personalities,
education likes and dislikes and a host of other personal factors such as attitudes
and behaviour. In social factors also include like value system, customer norms,
symbols, attitude and perception of both labour and management that affect the
industrial solutions in variable ways.
According to Max Weber:-
“Also holds the view that it is the social structure of the enterprise which determine
the relationship between labour and management as well as the attitude of the
labour to his job.”
According to George C. Hamans:-
“In sociological approach to industrial Relations include. Three main elements.:

Activities

Interactions Sentiments

Above elements – activities, interactions, and sentiments are essential or required

from its members if it is to survive.
3. System approach to Industrial Relations:
John Dunlop “ has developed a system approach to IR (Industrial Relations)
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This approach is quite helpful in studying the industrial relations in the sense that it
focuses on participants in the process, environmental forces and the output. Further,
it studies inter-relations among different facts of industrial relations system:-

Environmental forces Participants in the Outputs

system
1. Market or Union Management
budgetary restraints Rule of the
2. Technology
3. Distribution of Government workplace
power in society.

4. Gandhian Approach to Industrial Relations:-

Gandhi’s View on IR’s are based on his fundamental principles of truth and
non-violence, and non possession. Out of these principles evolved the concepts of
non-co-operation and trusteeship on which his philosophy of industrial relations
rests. This philosophy presumes the peaceful co-existence of capital and labour
which calls for the resolution of conflicts by non-violent. Non –cooperation, which
actually amongst to peaceful strikes in ordinary parlance.
Gandhi has accepted the workers right to strike, but remarked that this right is
to be exercised in a just cause and in a peaceful and non-violent only after
employers fail to respond to their moral appeals.
Gandhian approach has given more emphasis on peaceful settlement of
Industrial disputes.
5. Unitary Approach:-
Under unitary approach, IR is granted in mutual cooperation, individual
treatments, team work and shared goals. Workplace conflict is seen as a temporary
aberration, resulting from poor management, from employees who do not mix well
the organisation culture. Unions cooperate with the management and the
managements rights to manage is accepted because there is no “we-they feeling”
According to unitary approach emphasis on a reactive IR strategy. They seek
that negotiation with employees. Participation of government’s tribunals and unions
is not sought or are as been necessary harmonious employees solutions. This
approach is being criticized as a tool fro employees away from unionism socialism. It
is also criticized as manipulative and exploitations.
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6. Pluralistic Approach:
Totally departs from the unitary approach. The pluralistic approach perceives.
 Trade unions as legitimate representatives of employee interests.
 Organisations as separation of competing interests, where the managements
role is to mediate amongst the different interest groups.
 Stability in IR as the products of concessions and compromises between
management & union.
 Legitimacy of the management authority is not automatically accepted.
The theories on pluralism were evalued in the mid sixties and early securities when
--------- witnessed a resurgence of Industrial conflicts. However the recent theories of
pluralism --------from British Scholars, and in particular form flanders and fox.
According to pluralists, industrial conflict is inimitable and it needs to
contained within the social mechanism of collective bargaining conciliation and
arbitration
7. Marxist Approach:-
Like the pluralistic, regards conflict between employees and employees as
inevitable. Marxist approach focus on the type of society in which an organisation
functions. Conflict arises not just because of competing invest within the
organisation but because of the division with in society between those who own or
manage the means of production and those who have only their labour to after.
Industrial conflict with political and social interest. Marxist approach is supportive of
capitalism, the unitary approach.

A) Employees :-
There are about 268.19 lakh employees working in the organized sectors in
our country.
The figure will be a staggering one if the number of the employees in the
unorganized is added. It is therefore, useful to certain observation about the Indian
users.
1. Commitment to industry:
Labour is committed to industrial setting. Thus contributing to stable
workplace.
2. Protective Legislation:
From time to time, the government has enacted a variety of labour acts. Ours
is the only country in world, which has so many acts to protect workers interest.
Thanks to protective legislation wages, benefits, ----- conditions, safety and health of
workers have improved consideration.
3. Status of the worker:
The economic and social status of workers is vastly improved. Improved skill
contents of the jobs and increased emoluments have made industrial employment.
4. Employment Pattern:
Under employment pattern improved technology of these new industries
created new jobs, with greater content, raising the minimum standard of education
required.
The employment pattern has further changed in the service industries and
electronic where in the employment has become more & more sophisticated.
Industrial relations in term of the opportunity to:-
 Improved their conditions of employment.
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 Voice any grievance.

 Exchange views & ideas with management.
 Share in decision-making.
B) Trade unions:
Trade unions have a crucial role to play in industrial relations. Trade union is
any complication of persons, whether temporary or permanent, formed primarily for
the purpose of regulating the relations between workmen and employees, between
workmen & workmen between employers and employers. The main objective of
trade union to protect and promote the interest of the workers and the conditions of
their employments is standard of living, security of employment etc.
C) Employers:-
Employers too, are directly involved in any dispute between the employers
and the employees. Employers are endowed with certain in alienable rights vis-a- vis
labour. The management has the right to hire and fire any workers, not with standing
union restrictions.
It is not just firing a worker here and there, but the management’s ability to
control the economic destiny of workers that matters. The management has the right
to relocate, close, merge, takeover or sell a particular plant – there actions affect
workers interest. Another tactic employed by the management is to gain the loyalty
of employees. In employer relations in term of the following activities:-
 Creating and maintaining employee motivation.
 Achieving of high level of efficiency.
 Sharing decision making with employees.
 Obtaining commitment from the workforce.
D) Employer’s Associations:-
Operate at local, industry and all India levels. The confederation of Indian
Industries (CII) is a powerful body at the national level which is doing an admirable
job in protecting and preventing the legitimate intensive owners of industries.

The main objectives of employers association :-> Developing, growing,

collective bargaining .

The main objective of CII are:-

Identifying, reinforcing industries, globalisation, awareness, adaptability, promoting
cooperation etc.
E) Role of Government:-
Government intervention in IR is as old as the industry itself. However, till the
th
19 century, governments everywhere followed the laissez faire policy. They left IR
to the managers and workers who were required to solve the problems themselves.
Towards the end of 19th century government attitude changed.. The government has
set up wage boards, labour courts, tribunals etc.
F) Judiciary and employee relations:-
The power of the judiciary are dual type:-
 The authority of the courts to set the legal disputes
 Judicial review:- the authority of the court to rule on the constitutionally of
legislation.
Second concerned the judiciary gets activated, implemented improvement
legislature etc.
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G) Industrial Relation Strategy

IR strategy means long-term planning in industry relation. IR strategy
maintains a relation between management and labour. Two types of strategy under
IR are:-

 Reactive strategy: Short term strategy

 Proactive strategy: Long term strategy

H) IR Decision:-
IR decision always emphasis on communication, relationship, co-ordination,
discipline, control competence etc.

Factors affecting Industrial Relations:

Industrial relations system of an organisation influenced by a variety of
factors.

a) Institutional factors:-
are included items like state policy, labour laws, voluntary codes, collective
bargaining, labour union etc.
b) Economic factors:-
Are included economic organisations. (Socialist, Communist, Capitalist) types
of ownership, individual company, labour market, level of unemployment, economic
cycle.
C) Social factor:-
Are included social values, norms, social status; influences industrial
relations in the early stages of industrialization.
D) Technological factors:
Are included types of technology, work methods research & development etc.
E) Psychological factors.:
Are included workers attitude, towards work. Their motivation, moral interest.
The various psychological problems resulting from work has a far reaching impact
on workers job and personal life that directly or indirectly influences industrial
relation system of an enterprise.
F) Political factors:-
Are included government policies, rules and regulation. Government shaped
industrial relation policy structure.
G) Enterprise related factors:
Fall issues, like style of management, value system, organisation culture and
climate.
H) Global factors:
Are included global cultural, economic and trading policies, role of industrial
labour organisation etc.

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Q.7:- What are the emerging trends in industrial relations in the era
of Globalisation. Examine significant transition and transformation
 - 16 -

in IR in this context. Or Giving trends –“The study of IR a changing

needs.”

Or
What is the present status of industrial relations in India? How
emerging socio economic scenario is affecting industrial relations?

Ans:- Industrial relations is a concrete system of interaction between workers and

management in industry.
In 1991 with declaration of new economic policy, a serios of industrial fiscal
and trade reforms were announced by the government. It was presumed that there
structural changes would arrest growing inertia that has set in the economy due to
its mis-management and continuance of unrealistic economic policies for more than
over decodes.
It is heartening to note that the new economic policy has altogether generated
a new business environment where in the private sector was liberated from the
clutches of excessive government controls. The Public sector units lost their
monopolistic custom duties the threshold limit of MRTP revoked FERA was
considerably access ability of foreign capital has become easily etc.
New economic policy maintains a harmonious industrial relations. The field of
IR is a coherent body of knowledge, which links to different disciplines (low,
economic, administration, sociology) which enables a person to understand, explain
and organize economic and social relations whether individual or collective formal
and informal which arise or are formed within the enterprise the firm the sector or in
the company as a whole between workers, employees & their representative
organisations & the static and related to their situations, needs, rights & goals sought
for the production of goods and services. In industry relations system consists of
three main heros:-
 Management organisation
 Workers
 Formality & informally organized.
The heros and their hierarchies or Organisations are located within the environment
defined in terms of technology labour and product markets and the distribution of
power in the larger society as it impacts the hero’s the workplace. In this
environment 3 heros interact with each other, negative use economics & political
power or influence in the process of determining the rules of the workplace that
constitute the output of industrial relations system.

Development in the field of industrial relations:

1) A new context:
In Europe, USA, and some other countries there has been an increase in
international competition. A number of new industrialized counters, some with a
distinct advantage in labour costs have emerged. Quality and innovation have
become crucial to organisation. Exchange rates have become volatile. New
information & manufacturing technologies have become available and the pace of
 - 17 -

structural reforms has increased. Economic performance has been a major problem
in many countries in recent years. There changes have led to an urgent need for a
change in the fabric of IR.
2. Trade unions:
Trade union plays a important role in industrial relation. Trade union is an
combination whether temporary or permanent formed primarily for the purpose of
regulating the relation between work men & employees workers & workers or
between employees and employees. “The changes in the economy.”
Changes in the workforce, the increase in part time and causal workers.
Employee aggressiveness, in some countries companies has pursued activities. In
Australia unions cooperate with the restructing policies of labour government.
3. Decline in Manufacturing and post faradism.:
There has been a seduction in the labour force in manufacturing with a
simultaneous increase in services. The blue collar workers of the 1970s and earlier
decades have been giving way to white color workers. They has developed a new
configration of industries within manufacturing with the growth of microelectronic,
consumer and capital goods and a simultaneous fall in textile steel and heavy
engineering. There has been in a way a shift from fordism to post-fordism to post-
fordism implying that skilled labour, decentralized bargaining, displacing traditional
workplaces.
These change described above have not taken place to the some degree in
all countries, but are indicative of the trends in most of them.
4. Quality of working life (QWL):
During the 1980s there has been a greater concern for the QWL and
productivity. QWL originated in the 1950s as part of the job enrichment theories.
Japanese companies concentrated predominantly on the quality circles with a fair
degree of success.
QWL has been instrumental in promoting a number of human resources
policies that were aimed at getting productivity increases as well as cooperation
during the process of introducing changes in technology.
5. Crises Response:
The economic crises of the1980s brought about a slow attitudinal change in
unions and management. There were instance of unions taking into accounts the
health of the enterprise is determining their actions. For instance American and
airline unions engaged in once that bargaining with employers. They agreed to lower
wages in order to make companies more competitive. This has been aided by more
transparent financial reporting to unions by management.

Future of Industrial Relations:

Future of industrial relations main concepts improvement in relationship
between union and management, under industrial relations, trade union, disciplines
collective bargaining, employee empowerment, technological change and
anticipative management.
 Competition
 Education and communication
 Common human needs and expectations.
 - 18 -

UNIT – 2

Q.8 : What is Trade union? What are the objectives of the formation of trade
unions? Explain the role and future of Trade unions.

Ans:- Trade Union Act was set up in 1926. Trade union is an combination whether
temporary or permanent formed primarily for the purpose of regulating the relation
between workmen and employees, workers and workers, between employees and
employees or for imposing restrictive conditions or conduct of any trade or business
and include any federation of two or more trade unions.

According to Webb.:
“A Trade Union is the continuous association of wage earns for the purpose of
maintaining or improving the conditions of their working lines.”

Features/Objectives of trade union:

Trade unions are essentially Organisations for the protection & promotion of
interests of their members and workers. The trade union generally pursue the
following broad objectives:-

1. The trade union is voluntary association.

Trade union is not a compulsory association but voluntary association of
workers, who may be in one or more industries & occupation
2. Common Interests:
There is certain common interest of the member workers. The leader of the
Trade Union is supposed to pursue and protect the economic & other interest of the
members which leader to their welfare.
3. Collective action:-
Through discussions in the meeting of Trade Union leader of the union takes
collective steps to press their demand before the management.
4. Permanent & Continuous association:
Trade Union permanent & continuous association but main function to
maintaining or improving the conditions of workers.
5. Economic benefits:
Trade union association engaged in securing economic benefits- maintain
price of labour & conditions.
6. Gaining legislative identify:-
The trade union also tries to give the legal identify the workers.
7. Other benefits:
Such as cultural, political, social and psychological are also within their
broader preview.
8. Precious benefits:
 To safeguard their interests
 To participate in union activities.
 - 19 -

 To exercise leadership
 To get hike in wage rate.
 To maintain good relation.
 To maintain adequate working conditions
 To get a media of communication
 To do fair dealing
 To get employment
 To get strengthen.

Role of Trade Unions

Trade union performs various role regarding the various classes of the society as
follows:

(A) Role towards the trade union member:-

 To safeguard the workers conditions and parties, education , housing,
co-operative
 To ensure health, safe, protect conducive work condition.
 To guarantee a fair deal and social justice to workers.
 To make the workers aware about their rights and duties, settle the disputes
through negotiation.
B) Role toward the industrial organisation.:
 To promote identify of interest
 To help in maintenance of discipline
 To create opportunities for workers participation in management and to
facilitate communication with management.
 Maintain harmonic relationship between workers and management
C) Role towards the Trade Union organisation
- To improve financial position and improve workers network of commercial
between union & its members.
- To maintain strengthen, necessary records, resolve the problem.
- To manage the Trade union organisation on scientific lines
- To train members to assume leadership postion.
D) Role toward society:
 - 20 -

- To actively participate in the development of the programs of national

development such as family planning, fore situation effective implementation
apply, cooperation etc.

- To enable unorganized sector to organize itself.

Future of Trade Union: In India trade unions are regulated by the Indian trade
union act 1926. All present there are about 48000 registered workers. Unions and
10 central labour organizations in our country.

Some important features of these unions are as follows:

1. As the National Commission on labour in India points out the structure of our
unions and their types do not admit of any simple generalization of the three
types of unions (general union, craft union, industrial union). Industrial union is
most prominent in our country, craft unions are found among non-industrial and
professional workers only. Thus we have the unions of taxi-drivers, tango-
drivers, bank employees etc. union divide into three categories.

- Primary unions which operate at the plant level

- Regional federations which work at the regional level
- Central labour organizations, which operate at the national level.
2. In our country some states there is very heavy concentration of unions but in
some others there are only a few unions. The following table gives figures of the
number of unions & the estimated average daily number of workers.

S.No. State Avg. daily no. of No. of workers

unions
1. Assam 110 170
2. Gujarat 695 1025
3. Haryana 245 356
4. Punjab 347 476

3. International organisation world federation of trade union established in 1946.

WFTU headquarter in Paris. Two of our central organizations (HMS) Hindu
Mazdoor Sabha, (INTUC) India, National Trade Union Congress.

Other National Trade Unions organizations

- BMS Bhartiya Mazdoor Sangh

- UTUC United Trade Union Congress
- NLO National Labour Organisation
- NIFTU National Front of Indian Trade Unions

Future role

Future unions should be encourage to make a thrust towards the psychological &
social well being of the workers some important areas Communication, counseling,
educations, training, welfare, family & vocational guidance, research.
 - 21 -

Some obstacles in the future growth of trade unions

Our trade union are not so developed as in the western countries due to following
reasons.:-
- Outside leadership
- Low membership
- Uneven growth of trade unions
- Absence
- Weak financial position
- Lack of interest
- Lack of public support
- Limited stress on welfare
- Lack of knowledge among workers of industrial practices in comparable
organizations complexities
- Multiplicity of trade union.
How to remove obstacles in future growth of trade unions?
- Development
- Co-ordination
- Improve economic & social benefits
- Improvement in financial growth
- Cultural activities
- Discipline
- Motivation
- Education and communication, counseling

Conclusion: Perfect recognition of unions will make them more effective

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Q.9 Write a short note on:

a) Types and structure of trade union
b) Function of trade union

Ans: a) Trade union has been one of the first fruits of industrial revolution
 - 22 -

Trade union can be classified under two heads.

A) Union classification according to the purpose

Under this head normally tow types of union falling
I) Reformist II) Revolutionary III) Other types of Trade Union

I) Reformist Unions:- Such unions work & propose changes within the existing
social & political framework of society reformist divide in two parts.

i) Business unionism: are those union that are maintained primarily to represent
the workers in collective bargaining with the employers.
ii) Friendly or Uplift unionism: Idealistic in nature & aspires to elevate the moral,
intellectual and social life of the workers. They emphasis such other consideration as
education, health, insurance etc.

II) Revolutionary Unions:

Such unions believe in the destruction of existing special and economic orders
development of new one. For attaining this objective they may purpose a major shift
in power and authority and serve use of force for this purpose.
Revolutionary Unions divides in two parts.
i) Anarchist Unions: The unions which try to destroy the existing economic
system by revolutionary mean called anarchist unions. Such unions exists no use in
presently scenario.
ii) Political Unions: This union which gain power through political unions. The
main function of such unions is to eliminate the power of capital, capitalists, wealth &
giving effective power to workers.

III) Other types of trade unions:

i) Craft unions:- It is an organisation of workers employed in a particular craft &
trade or in a single craft or few occupations. Such organisation link together those
workers who have similar skills craft training etc.
ii) Industrial unions:- Covers workers with a variety of skills employed in a
single industry e.g. coal industry.
iii) Staff unions: The term staff union is popularly used to both craft & industrial
union. It is organized the workers on the basis of craft working in the same industry.
iv) General Unions:- It is a organization which covers various industries &
labourers having different skills.

Structure of Trade union:

Name of Trade union Set up Work

a) WFTU (world federation
of trade union)
b) AITUC (All India Trade
Union Congress)
c) HMS (Hindu Mazdoor
Sabha)
d) CITU (Centre of Indian
1946 Improvement international & National Level
economic, social, political etc.
1921 Improvement the economic, social conditions
1948 Peaceful and democratic
1971 Legislation, political matters, agitation
 - 23 -

Trade union)
e) NIFTU (National front of 1973 Growing fast Independent unions
Indian trade unions)

b) Function of Trade Union:-

1. General function of trade union:

Improvement in workers working conditions and protection. It consists of
regular hour of work, shift working and paid holiday and limit of overtime workers
others improvements in wages periodical test, leave.
2. Social function: Under social function improve the quality of work life,
education, communication, research, counseling.

3. Political function: Related to the function of a political labour party or those

reflecting an attempt to seek influence on public policy relating to matter connected
with the industry members, basically political function influence by government policy
decisions in the interest of workers.
4. Militant function:- Main aim of the union is to secure better conditions of
work and employment.

5.Federal function:- Federal function or a mutual benefit organisation supporting

the member out of their own funds during the period of work stoppage due to strike
or lockout. It also provides financial assistance to the member during the period
when they are only their work because of illness or employment injury or when they
are temporary employed.

Federal function divides in two parts.

a) Infra-mural activities: Such functions of unions leads the betterment of
employment condition of employees such as adequate salary etc collective
bargaining, negotiation etc.
b) Extra-mural activities:- Such functions help the employee to maintain and
improve their efficiency such as promote, friendly relation, education and culture
among members.

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UNIT -3
Q.10: Give a comprehensive note on legal framework of
industrial relations in India.
Or
Write a short note on (a) Industrial disputes Act 1947, (b)
the payment of wages Act 1936 (c) ILO, (d) Standing order
Act. 1946,
 - 24 -

Ans:- The government of India has also given some legislative provisions at
workplace. All there labour legislations are based on the recommendation of ILO
(International Labour Oraganisation) to which India is a member country.

1. Role of International labour organisation

The ILO is a tripartite organisation consisting of representatives of the
government employers and workers of the member countries. India has been an
active member of the ILO.
As one of the ten countries of “chief industrial important: India holds a elective
seat on ILOs’ governing body. It is a member of 5 committees of the governing body.
a) Programme, finance and administrative.
b) Legal issue and internal labour standard.
c) Employment and social policy
d) Technical cooperation
e) Sectoral and technical meetings and related issues.

The main purpose and function of ILO is improvement of conditions urgently

required in varied particulars.

 The regulation of labour supply.

 The prevention, protection and adequate living wage.
 The protection health, wealth, education and communication.
 Permission for old age and injury.
 Recognition of the freedom of association.

The fundamental principle ILO:-

 Labour is not a commodity.
 Poverty anywhere constitutes a change to prosperity everywhere.

ILO major three directions

 Establishment of tripartite international committees.
 The holding of regional conferences
 The development of operational activities.

1. ILO conventions in India (1994)

The ILO 176 conventions out of which it has satisfied 36 conventions. ILO
conventions emphasis- Basic human rights, employment migrant workers etc.
2. Labour Legislations in India
In India law forms the most powerful instruments through which the
government regulates Industrial relations between the employees and employers.
Legal framework:-
a) The trade union Act 1926
It is the only legal framework for the trade union movement in the country. It
legalizes the formation of trade unions by conceding to workmen their right of
association and organizing unions. It permits any 7 persons to term their union and
get it registered under the act. Registration of union is optimal and not compulsory.
b) The Industrial Employment Act 1946, (Standing order)-
 - 25 -

The Act clearly says the “Standing orders” shall deal with the conditions of
employment of workers in an industrial establishment.
The main aims of the act:- To define with sufficient precisions, the principal
conditions of employment in industrial establishments under them and to make the
said conditions known to workmen employed by them. To regulate standards of
conduct of the employers and employee that labour-management relations could be
improved. Maintain discipline, harmonious working conditions, duties and
responsibilities of employers and employee. Etc.
c) The Industrial Disputes Act 1947.
The best way to make provision for the investigation and settlement of
industrial disputes and for certain other purposes.
This act deals with the prevention and settlement of dispute between two
parties and thereby try to improve relationship between them.
On the basis of the judgments given time to time, by the Supreme Court, the
principle objectives of the act may be stated as follows:-
 Good relations between employees and employers.
 To prevent illegal strikes and lockouts.
 To provide relief to workmen in matters of lay-offs, retrenchment, wrong
dismissals and motiveness.
 To give the workmen the right of collective bargaining and promote
conciliation.

The purpose of the Act, according to Patna High Court , is

“ A melioration of the conditions of workmen in an industry”
d) The payment of wages of Act 1936.
Under this act the employers determined the mode and manner of wage
payment as they liked. Even when paid in cash, wages were paid in illegal tender
and in the form of deprecated currency.
e) The Minimum Wages Act 1948
This act is to secure the welfare of the workers in a competitive market by
providing a minimum rate of wages in certain employments. Under this act provide-
education, social and medical requirements.
f) The factories Act 1948
This act come into force on April 1st 1949. The main aims of this act t secure
health, welfare, proper using hours, leave and other benefits for workers employed
in factories.
g) The payment of Bonus Act 1965
The Bonus act is the outcome of the recommendation made by the impartite
commission, which was set by the government of India way back in 1961. the main
aims to outline the principles of payment of bonus according to perfect formula . to
provide machinery for enforcement of bonus etc.
Conclusions: Above discuss framework of industrial relation is based totally
improvement in workers working conditions and maintain harmonious relationship.

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UNIT 3
 - 26 -

Q.11:- Design a suitable grievance procedure which could

be set in an industry for the early settlements of the
grievance determine grievance.
Ans: Grievance :- the term grievance means “any discontent or dissatisfaction”
According to Mandy and Neo:- “Employees dissatisfaction or feeling of personal
injustice relating to his or her employment.”
Grievance procedure is an important element of a sound industrial relations
machinery prompt and effective disposal of workers grievance is the key to industrial
peace.

According to Chandra:- The following area were course of employee grievance.:-

1. Promotions, 2) Amenities, 3) Continuity of service, 4) Compensation, 5)
Disciplinary action, 6) fines, 7) Leaves, 8) Medical benefits, 9) Increments,
10) Nature of job, 11) payment, 12) Recovery of duties etc.

Grievance in Industry:-
There are many factors in industry which make a worker unhappy and
dejected. May be his fellow workers are non-cooperative or his foreman’s harsh
remarks or his own personal problems outside the factory or domestic matters.
Poverty, debts, unemployed, etc may be adversely in his mind. He looks around and
finds everybody being unkind to him. He is aggrieved & wants to ventilate his feeling
and reactions. A well defined grievance procedure is an important element by a
sound industrial relations machinery.

Grievance procedure in Indian industry :-

In India settlement of grievance did not receive adequate attention in the
legislative framework till the enactment of industrial employment act 1946, & the
factory act 1948. The industrial employment act provides that every establishment
employing 100 or more workers should frame standing orders which should contain
a many other matters, provision for means of redressal for workmen against unfair
treatments or wrongful actions by employer or his agents or servants.

Grievance Procedure
Before grievance procedure managing grievance in following ways-under.
Managing grievance covers 5 steps:-

1. Receiving and defining the nature of the dissatisfaction

2. Getting the facts.
3. Analyzing the facts and reaching a decision.
4. Applying the answer
5. Follow-up.

Grievance procedure
Grievant Management
 - 27 -

Stage-I
Grievant- conveys viability. Officer designated by management
to deal with grievance at this initial
stage. To reply in 48 hours.

Not satisfied go to

Stage-II
Grievant & Departmental representatives Head of department (meet at pre-
allocated time daily for grievance
handling) reply in3 days

Decision Unsatisfactory

Stage-III
Grievant and Departmental representatives
Grienance committee to decide in 7
days and report to the manager. If
the decisionis decision is is
unanimous, then it should be
implemented by the management.
Time limit is 3 days.

Decision not in time or not satisfactory.

Stage- IV
Grievant & departmental representatives Appeal to management for revisio. A
week for appeal to be considered.

No agreement

Stage-V
Grievant management may refer Voluntary arbitration with in a week a
To union. After decision from Stage-IV

The major determinate of grievance includes- management practices, Union

practices, industrial personality traits.

A) Management practices:

1) The behaviour of supervisor, peer’s group can cause grievance.

2) The improper division of work among employees lead to employee grievance.
3) The autocratic organizational environment can cause grievance.
4) Employer compensation, overtime, role clarity, leave.

B) Union Practices:

1) Motivating employees
2) Lobbying for numerical strength & support.
 - 28 -

C) Individual personality Trait

1. Narrow Attitude
2. Highly educated workers.

Conclusion :- Grievance efficiently, it is necessary to find and analyse the

grievances of the subordinates.

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Q.12:- Discuss the importance of collective bargaining asa

method of regulating relations between employers and
employees. What are the pre-requisites to make it
successful?

Ans:- Introduction:- Collective bargaining is concerned with relations between

unions representing employees and employer. It involves the process of union
organisation of employees, negotiation, administration, hours of work, engaging in
concerned economic action and disputes settlement procedure.

Importance of collective bargaining:-

Collective bargaining helps to promote cooperation & mutual understanding between
the workers and the management. It provides framework for deciding the terms and
conditions of employment without resort to strikes and lockouts and without the
intervention of outsides. Some importance of collective bargaining:-

1) Collective bargaining increases the morale and productivity of employees.

2) Effective collective bargaining machinery strengths the trade union
management.
3) Collective bargaining opens up the channels of communication between the
top and bottom levels of the organisation, which may be difficult otherwise.
4) It is easier for the management to resolve issues at the bargaining table
rather than taking up complaints of employees individually.
5) Collective bargaining to industrial peace in the country.
6) Collective bargaining is a continuous process.
7) Collective bargaining maintains harmonious relationship.

Methods of collective Bargaining:-

The level of enterprise there may occur.
a) Company bargaining between representatives of union and management.
b) National bargaining may occurs at the level of industry between the
representatives of a union or a federation of employer’s association.
c) Effort bargaining where the amount of work to be accomplished for a
predetermined wage becomes negotiable alike the wage itself.
 - 29 -

d) Productivity bargaining irrespective of financial system involved.

Bargaining can be “formal” as well as “informal” formal includes
Formal = basic wage rate, condition of work.
Informal = financial incentives, disciplines, work practices.

Process of collective bargaining

Collective bargaining has two facts:
A) The negotiation state.
B) The stage of contract administration.

The process of Collective Budgeting involves major six steps:-

A) Negotiation state:-
Certain proposals are put forward which explore the possibility of their
acceptance and have the way to mutually agreed terms after careful deliberation &
consideration. The negotiation involve three steps

1) Preparation for negotiation :-

Under first step prepare specific proposal for changes in the contract
language. Prepare statistical displays and supportive date for use in negotiations.
The attitude and desirous of the employees.
2) Identify Bargaining issues:- it is divides in 4 categories.
Wages related issues, supplementary economic benefits, institutional issues,
administrative issues.

3) Negotiating:- means bargaining the success of negotiation depends are

skills and abilities of the negotiators.

B) Contract Administration:-
When the process of negotiation has been completed, it is time to sign the
contract, the terms of which must be sincerely observed by both the parties.

Under two process:-

1) Settlement and contract agreement

2) Administration of the agreement.

Some important prerequisites for collective bargaining to make successful:

1) It is important for the management to recognize the union and to bargain in

more good faith.
2) Both the management and union should be able to identify grievance, safely
and hygiene problem on a routine basis.
3) Trade union encourages internal union democracy and have periodic
consultations with the rank & file members.
4) The negotiating teams should have open minds; to listen & appreciate the
other’s concern & point of new and also show flexibility in making adjustments
to the demand made.
 - 30 -

Collective bargaining in developed and developing countries based on some perfect

difference ideological, political, social differences.

Conclusion:- Collective bargaining is the beginning of industrial jurisprudence. It is

a method of enforcing citizenship right in industry i.e. management rules and
decision.

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UNIT – 4

Q.13:- Employee empowerment is an important

motivational tool organisatoin can use.” Discuss the
statement and explain how empowerment motivates
employees.

Ans:- Empowerment mean to enable, to give power, to allow or to permit.

Empowerment as an act of building, development and increasing power.
Empowerments as a motivational concept associated with enabling rather than
delegating. Empowerment process include u-step model- preparation, creak tommer,
vision and change.

Employee empowerment is an important motivational tool in organization.

1) A flatter organization structure facilitating dispersion of authority.

2) Participative decision –making and allied activities in the organization.
3) Open communication systems and exchange of information.
4) Resource sharing.

Empowering employees no longer remains an optical decision, but has become

necessity to make organization flexible and adoptable to the volatile environment.
Why are more and more companies empowering employees? One reason is the
need of quick decisions by those people, who are most knowledgeable about the
issue. Often those at lower organizational levels.
If organizations are to successfully complete in a dynamic global economy. They
have to be able to make decision and implement changes quickly. Another reasons
is the reality that organizational downsizing during the last part of the twentieth
century left many managers with larger spans of control. In order to cope with the
increased work demands manager had to empower their people.
If an organisation implements employee empowerment properly: - the
productivity gains, quality improvement more satisfied customers, increased
employee motivation and improved morale. But the primarily role of management is
 - 31 -

“to support and simulate their people, co-operate to overcome cross functional
barriers, and work to eliminate fear within their own team.”

Success with empowerment

Saturn a highly successful American Car manufacture, empowered its employees by
the work team. Even the design process involves a high degree of employee
participation. In the Saturn case, empowerment became directly linked to
responsibility, and employees make suggestion how to improve processes.

Managerial imperatives for successful empowerment.

The role of lower and middle level managers is vital for the success of
empowerment programs for frontier.
According to Rust, Zaharik and Kenny have highlighted a new duties at the
managerial level, which are as follows:-

1) Mentoring:- Employees in problem solving, decision- making and team

works skills
2. Coaching: Employee to do their more better.
3. Setting goals: are providing in centimes through compensation and
special awards both monetary and otherwise.
4. Facilitating: The work after front line by making available necessary
resource and training.
5. Coordinating : The work of teams helping to resolve problems within
and between teams.
6. Monitoring and evaluating: Internal and external performance

How empowerment motivates employee under concept proper process of

empowerment to motivate employees?

The process of empowerment will differ from organization to organization depending

on their.

 Concept of empowerment
 Organizational objectives and strategies.
 Resource and financial position.
 Attitudes towards customer & employee
 Employee’s knowledge skills.

It is a philosophical concept that organizations have to buy into:- for many

organisation include some. Important facts – values, leadership, job structure and
reward system.

Process of empowerment divide into 3 steps.

a) Studying the working environment of the employees.
b) Redefining tasks and reallocating resources.
c) Focusing on the psychological & motivational needs of employee in
empowered position.
 - 32 -

a) Studying the working environment of the employees.

Empowerment is brought into meet several objectives such as improving the quality
of services increase productivity, improved morale etc.

Studying the work environment of the employee work:-

i) Present level of employee- skills, confidence, etc.
ii) Financial and physical resources of the organization
iii) Relationship between employee and employer, decision-making authority and
responsibility.
Above studying preliminary analysis helps management design the empowering
process for employees.
b) Redefining tasks and reallocating resources.
Redefining task and reallocating resources include number of activities such as
information sharing, redesigning, communication system job enrichment, allocating
resources, decision-making etc.
According to Palin empowerment has three major dimensions.
 Participative decision –making
 Resource availability.
 Decision-making authority.
Above discussion about perfect information about organization’s performance,
knowledge, decision making.
c) Focusing on the psychological and motivational needs of employees in
empowered position:
Under this three steps are involved:- discussion about delegating – authority
to employees may be necessary to empower them. Main focusing motivational
construction. The act of giving a person a sense of power.

Conclusion :- Empowerment has come to play a major role in corporate excellence.

Empowerment means giving the employees the authority to make decisions and
providing them with financial resources to implement their decisions.

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Q.14:- Concept of WPM is facing tough times today and

reason lies on part of all those involved.”
Ans:- The term participation is derived from Latin word ‘Participare’ that mean taking
part or sharing shaving is a bilateral process involving motivational & functional
manifestations, the term worker participation involves sharing in an appropriate
manner. The decision- making power with the lower ranks of the organization.

According to Kenneth Walyer.

 - 33 -

“Worker participation in management is a resounding phase, bridging the past and

the future.”

(I) Concept:-
The technique of the workers participation in management has been regarded
as a powerful behavioral tool for managing the industrial relation system. The
concept of the WPM crystallizes the concept of industrial democracy and indicates
an attempt on the employer to build his employee into a team, which works towards
the realization of common objectives. It is a mental and emotional involvement of a

person in a group situation which encourages him to constitute to goals and share
responsibilities with them.
a) The participation enhances employees ability to influences decision – making
at different tiers of the organizational hierarchy with concomitant assumption of
responsibility.

C) The participation has to be at different levels of management

- at the shop level
- at the departmental level
- the decision- making at there different levels.

c) WPM concept the growth of trade unions, which safeguard the interest of workers
and protect them against possible exploitation by their employees.

d) Improving the efficiency of enterprises and maintain harmonious industrial

relations.

e) Ethical moral concept is very important in organization.

f) Economic benefits relate directly or indirectly to increase efficiency of the

undertaking.

II) Types of involvement and participation of employer at different levels/forms

Involvement and participation takes various forms at different level in an
organisation.

a) Job level:-
Involves team leader and their team and the processes include the
communication of information about work and interchange of ideas about how the
work should be done.

b) Management Level:
can involve sharing information and decision-making.

c) Policy making level;

 - 34 -

Involve where the direction in which the business is going is determined, total
participation would imply sharing the power to make key decision.

d) Ownership level:-
Participation implies a share in the equity:-

SCALE OF PARTICIPATION:

Employees
Degree to which management decide
pre-negative is preserved unilaterally

Management
joins with
employees in
decision-
making
Management
consists
employees
before making
final decision
Management
communicate
decisions to
employees
Degree to which employee are
involved.
Management
decides
unilaterally

Requirements for successful employee involvement & participation

The totally success of worker’s participation depends important points:-
 - 35 -

- Building must
- Eliminating status differentiate.
- Trading and development organization culture.

According to Armstrong suggested the following ten basic requirement for

success:-

1.) The objectives of participation must be defined.

2.) Clear information about company policies.
3.) During decision making select the best alternative
4.) Morale or ethical concept is important.
5.) Negotiating policies
6.) Rules and responsibilities
7.) Meeting is important during participation.
8.) Collaboration system
9.) Consultation
10.) Training and development education.

III) At present the following participative forms are prevalent in India.

1. Work committee:- Set-up under the industrial disputes Act 1947.

2. Joint- Management councils : Set-up as a result of the labour management

co-operation seminar 1958.

3. Workers representatives on the Board of Management (1970)

4. Unit councils (5th Jan 1977)
5. Plant councils (Operational, Economic, financial & personnel, welfare,
environmental)
6. Shop councils (increased productivity & efficiency) 1975

Conclusion:- The concept of WPM is a broad one.

Q.15:- Define Total Quality Management (TQM) quality and

QM? How to identify cost and the role of vendors in QM?
Ans:- Definition:-
TQM “Total Quality Management” is an approach to improving the effectiveness and
flexibility of business as a whole. It is essentially a way of organizing and involving
the whole organisation every department, every activity, every single person at every
level”

TQM is a programmatic long-term approach, it is initiated and driven by top

management.
 - 36 -

Quality: Quality is fitness for use. Quality means best for certain customer condition.
These conditions are:-the actual use and the selling price of the product.

QM:- Quality management is an integration of all behavioural operations, which is

essential in assining. Smooth and coordinated function of the organization. OM
today is network of relationship.

The basic pattern of Quality cost: -

Quality cost:-
Quality costs are a measure of all costs associated with achievement of
product quality. Traditionally collection and analysis of quality related costs received
less attention because of the lack o f understanding of the concept and difficulties in
measuring & linking it with the organizations cost system.
The measurement of these costs helps to:-

1. Highlights to all employees the important of product & service quality to

business profitability.
2. Form a basis for decision making.
3. Identify area which need immediate attention & improvement
4. Measure the effect of action taken
5. Budget the expenditure for accomplishing the QM Program
For achieving these purpose an understanding of quality costs and a program
for evaluating there is required.

Quality cost in cussed in manufacturing are divide into 4 major classification:-

(1) Prevention Costs:-

This category involves all those activities aimed at preventing defects,
defective products and errors, on the one hand and building acceptable quality into
products and services on the other. It includes designing, maintaining, implementing
auditing. The quality system where such a system is actually identified. It includes :-
Planning, training, seminars, customer survey, customer research oriented at
improving quality. If preventionis used in a negative term should be replaced in QM
by a new phrase as “cost of building acceptable quality.” The main term quality
control activities, preventing deficits and errors.

(2) Appraisal Costs:-

Those costs incurred in attempting to measure the extent to which QM
objectives are met. This category involves all activities measuring, inspecting, testing
and auditing products and performance to determine confirmation, standards of
performance & specification. It includes performance of employees, performance of
equipment and machines, laboratory tests, quality audits, testing, sampling.

3) Failure Costs:- Divide in two parts.

 - 37 -

a) Internal failure costs:- There are the costs which are incurred because of
defects in the product before its shipment to a customer.
These include:
- Scrap and rework.
- Downtime costs,

b) External Failure Costs:- There represent all costs incurred on defective

products after it is deliberated to a customer.
- Investigating and solve problem
- Liability and penalties costs.

Analysis and use of Quality Costs:-

The quality cost data collected through a systematic program need to be analyzed
for orienting efforts to reduce them. If prevention is perfect no failure of prevention is
not perfect failure.

Always analysis quality costs involves

i) Use zero defect programs to eliminate failure costs.
ii) Review the quality standards for their utility.
iii) Use cause and effect analysis to reveal failure and causes for it.
iv) Eliminate through effective corrective action.

The role of vendors in QM (Quality Management)

Vendors mean one who sells. Vendors play a important role in quality
management. Vendor’s role for setting the standards for quality because vendors
know customer requirements actions, behaviour and attitudes.

1. It role setting the standards for quality.

2. It role meeting the requirements in specific time.
3. Vendors attend QM seminars.
4. Vendors maintain coordination function in QM operations.
5. Vendors carry out the main objective of customer satisfaction.
6. It role continuous improvement in quality management system

Conclusion:- QM is multifaceted in nature. QM isantal components is required to

achieve the desired goal.

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