Professional Documents
Culture Documents
ON
INDUSTRIAL RELATION
AT
Knowledge has two aspects - theoretical and practical and no theoretical concept is complete
without having knowledge of its practical application. A few weeks professional training programme
was introduced as a part of curriculum of P.G.D.M. This summer training programme proves
beneficial to the future managers as they are confronted with the problems of actual work environment
during their training period.
As per the curriculum requirement , I did project on INDIAN OIL CORPORATION LTD. In
INDIA, THIRTHAHALLI. Working in such a big concern, no matter for a very small period was
really a matter of pride. My area of work in that concern was confined to Human resource department
and moreover it was not possible for me to cover all the areas of human resource department in such a
short period of time so I concentrated my working on the project assigned to me i.e. INDUSTRIAL
RELATION. So the learning during the training in INDIAN OIL CORPORATION LTD., a report of
that is being presented in the following pages.
KIRAN D
My topic is I.R. the industrial relation, the relationship between the employer and
employee on the basis of certain terms and conditions of employment.
The objective of my study is very broad. In keeping consideration the Thirthahalli Refinery
i.e the part of IOCL. I broadly concentrated on the cordial relationship between the
management and worker.
As we know that employees are the assets of the organization and without giving
proper attention and satisfaction to the employees, no one organization can survive in the
long run.
As a matter of fact, I can say that the employees and the workers are the really the backbone
of IOCL. Without it the organization can‟t get profit.
I n the context of Thirthahalli Refinery, I can say that workers and employees are
satisfied at the great extent and there is not any strike from January 2009. Also my guide told
me that lockout, layoff and retrenchment having no any relevance in the Thirthahalli
Refinery.
1. Cause and success of cordial relationship between the employer and employee.
2. The condition of Trade Unions
nery
3. Types of grievances arised in ref
4. Machineries for redressing the grievances
5. Working conditions of plant
6. Payment and other factors.
The relationship between employer and employee is the most important relationship
in the corporate world. The positive relationship between both of them is effective technique
for the growth of the organization. It would almost impossible to increase the production
without greatest co-operation between employer and employee.
One of the most important and the challenging task of the manager is to satisfy
employee to a large extent and to minimize their conflicts. In order to satisfy employees and
manager must have to adopt motivational factors, incentives schemes.
My topic is I.R, which is broadly related with the relationship between the employer
and employee with the terms and conditions of employment.
So, the I.R is very broad topic in present scenario, every company want to enhance its
productivity. But the productivity can‟t be improved unless and until the employees are not
satisfied. Without satisfying the employees, the organization can‟t go in the long run and
can‟t compete with its competitors.
In order to enhance productivity and satisfying the employees, they have to maintain
a cordial relationship between employees, employer and Government. So that, they can
survive in the long run and can compete with its competitors.
BIBLIOGRAPHY 66
A) COMPANY’S INTRODUCTION
B) INTRODUCTION OF THIRTHAHALLI
REFINERY
The Indian Oil Corporation Ltd. operates as the largest company in India in terms of turnover
and is the only Indian company to rank in the Fortune "Global 500" listing. The oil concern is
administratively controlled by India's Ministry of Petroleum and Natural Gas, a government
entity that owns just over 90 percent of the firm. Since 1959, this refining, marketing, and
international trading company served the Indian state with the important task of reducing
India's dependence on foreign oil and thus conserving valuable foreign exchange. That
changed in April 2002, however, when the Indian government deregulated its petroleum
industry and ended Indian Oil's monopoly on crude oil imports. The firm owns and operates
seven of the 17 refineries in India, controlling nearly 40 percent of the country's refining
capacity.
1958
Indian Refineries Ltd. formed in August with Mr Feroze Gandhi as the Chairman.
1959
Indian Oil Company Ltd. established on 30th June 1959 with Mr S. Nijalingappa as
the Chairman.
1960
Agreement for supply of Kerosene and Diesel signed with the USSR.
MV Uzhgorod carrying the first parcel of 11,390 tonnes of Diesel for IndianOil
docked at Pir Pau Jetty in Mumbai on 17th August 1960.
1963
Foundation laid for Gujarat Refinery
Indian Oil Blending Ltd. (a 50:50 Joint Venture with Mobil) formed.
1964
Indian Refineries Ltd. merged with Indian Oil Company with effect from 1st
September, 1964, and Indian Oil Company renamed as Indian Oil Corporation Ltd.
Thirthahalli Refinery commissioned.
The first petroleum product pipeline from Guwahati to Siliguri commissioned.
1965
1967
Haldia Thirthahalli product pipeline commissioned.Bitumen and marine bunkering
businesses commenced.
1968
1969
Acquired 60% majority shares of IBP Co. Ltd. The same was offloaded in favour of
the President of India in 1972.
1971
1972
1974
1975
1977
1981
Digboi Refinery and Assam Oil Company's (AOC) marketing operations vested in
IndianOil and it became Assam Oil Division (AOD) of IndianOil.
1982
1984
1985
New office complex for Registered Office of the Corporation and HeadOffice of
Marketing Division in Mumbai completed.
1986
Salaya-Mathura crude oil pipeline suitably modified for handling Bombay High
Crude during winter.
1990
1991
Digboi Refinery modernisation project initiated.
1993
New era Micro-processor based Distributed Digital Control Systems replacing the
pneumatic instrumentations began in refineries.
1994
1996
1997
1998
Panipat Refinery was commissioned.
Haldia, Thirthahalli Crude Oil Pipeline (HBCPL) was completed.
The Administrative Pricing Mechanism (APM) was withdrawn from the Refining
Sector effective 1" April 1998. Phase-wise dismantling of APM began.
1999
Indian Hydrocarbon Vision -2025" was announced at PETROTECH-99, organised by
Indian Oil on behalf of the oil Industry.
Diesel Hydro-desulphurisation Units commissioned at Gujarat, Panipat, Mathura and
Haldia Refineries.
Manthan -- the IT re-engineering project was launched.
2000
Indian Oil crossed the turnover of the magical mark of Rs l ,00,000 Crore -- the first
Corporate in India to do so.
Indian Oil entered into Exploration & Production (E&P) with the award of two
exploration blocks to Indian Oil and ONGC consortium under NELP-1
Y2K compatibility achieved.
JNPT Terminal was commissioned.
2001
Digboi Refinery completed 100 years of continuous operation.
Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery and
Petrochemicals Ltd. (BRPL) were acquired.
Fluidised Catalytic Cracker Unit at Haldia Refinery was commissioned.
2002
APM dismantled. Pricing of Petroleum products decontrolled.
IBP Co. Ltd. was acquired with management control.
Thirthahalli Refinery expansion project completed.
New generation auto fuels IOC Premium and Diesel Super introduced.
2003
Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka.
Retail operations began in Sri Lanka. Indian Oil became the first Indian Petroleum Company
to begin downstream marketing operations in overseas market. Lanka IOC became an
independent oil company in Sri Lanka
Gasahol, 5% ethanol blended petrol, was introduced in select states.
INDMAX unit at Guwahati Refinery commissioned.
2004
Indian Oil turned a Gas marketer by sale of regasified LNG.
Indian Oil Mauritius Ltd.‟s 18 TMT state-of-the-art Oil Storage Terminal at Mer
Rouge commissioned
Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka.
Gasahol, 5% ethanol blended petrol, was introduced in select states.
INDMAX unit at Guwahati Refinery commissioned.
Foundation Stone of Panipat Refinery Expansion and PX/PTA projects laid.
Maiden LPG supplies to Port Blair.
2005
The year marked Indian Oil's big ticket entry into the high stakes business of E&P.
Indian Oil's Mathura Refinerywas the first refinery in India to attain the capability
of producing entire quantity of Euro-III compliant diesel by commissioning the Rs
1046 crore DHDT (Diesel hydrotreating unit).
2006
Panipat Refinery capacity enhanced from 9 to 12 MMTPA
World-scale Paraxylene/Purified Terephthalic Acid (PX/PTA) plant commissioned at
Panipat as mother plant for polyester industry
Chennai-Trichy-Madurai product pipeline dedicated to the nation.
2007
Marketing subsidiary IBP Co. Ltd. merged with parent company.
Concept of SERVOXpress Centres as one-stop shops for autocare services launched.
Mundra-Panipat crude oil pipeline with facilities for handling heavy crude oil
commissioned.
Lanka IOC commissions Lube Blending Plant and laboratory for testing fuels and
lubricants at Trincomalee
Concept of „LNG at the doorstep‟ launched for customers located away from gas
pipelines
2008
SERVO lubricants launched in Oman.
IndianOil Chairman elected as President of World LP Gas Association.
Chairman
B M Bansal
Chairman & Director (Planning & Business Development and R&D)
Board of Directors
N.K. Poddar
Principal Executives
D K Samantaray Chief Vigilance Officer
Vipin Kumar Advisor (Security)
Indian Oil Corporation Ltd. (Indian Oil) was formed in 1964 through the merger of Indian
Oil Company Ltd. (Estd. 1959) and Indian Refineries Ltd. (Estd. 1958).
At Indian Oil, corporate social responsibility (CSR) has been the cornerstone of success
right from inception in the year 1964. The Corporation‟s objectives in this key performance
area are enshrined in its Mission statement: "…to help enrich the quality of life of the
community and preserve ecological balance and heritage through a strong environment
conscience”
.From a fledgling company with a net worth of just Rs. 45.18 crore and sales of 1.38
million tonnes valued at Rs. 78 crore in the year 1965, Indian Oil has since grown over 3000
times.
Indian Oil Corporation Ltd. (Indian Oil) is India's largest commercial enterprise, with a
sales turnover of Rs. 2,47,479 crore (US $ 61.70 billion) and profits of Rs. 6,963 crore (US $
1.74 billion) for the year 2007-08.
Indian Oil is also the highest ranked Indian company in the prestigious Fortune 'Global 500'
listing, having moved up 19 places to the 116th position in 2008. It is also the 18th largest
petroleum company in the world.
Indian Oil has ambitious investment plans of Rs. 43,250 crore in the next five years. By
2011-12, the Indian Oil Group, with 80 MMTPA refining capacity in its fold, would be playing
a key role in realising India‟s bid to emerge as an export-oriented hub for finished products.
Indian Oil is not only the largest commercial enterprise in the country it is the flagship
corporate of the Indian Nation. Besides having a dominant market share, Indian Oil is widely
recognized as India‟s dominant energy brand and customers perceive Indian Oil as a reliable
symbol for high quality products and services.
Benchmarking Quality, Quantity and Service to world-class standards is a philosophy
that Indian Oil adheres to so as to ensure that customers get a truly global experience in India.
Indian Oil is a heritage and iconic brand at one level and a contemporary, global brand at
another level. While quality, reliability and service remains the core benefits to the
customers.
Autogas
Bitumen
Indane Gas
MS / Gasoline
Petrochemicals
Special Products
Crude Oil
The Corporation's refineries surpassed 100% capacity utilisation and clocked the
highest ever throughput of 51.4 million tonnes. Breaching the 10,000 km mark in length, the
pipelines network registered the highest ever operational throughput of 59.5 million tonnes of
crude oil and petroleum products.
During the year 2010-2011, IndianOil's sales volume registered a growth of 5.6% and went
up to an unprecedented 62.6 million tonnes of petroleum products as compared to 59.30
million tonnes during the previous year. Sales of natural gas also went up to 1.7 million
tonnes in 2008-09. In addition, product exports rose to 3.64 million tonnes from 3.38 million
tonnes in the previous year.
Among new businesses, Natural Gas marketing and Petrochemicals generated revenues of
Rs. 2425 crore and Rs. 2760 crore during the year 2010-2011
Core Performance
Financial Performance
IndianOil‟s gross turnover (inclusive of excise duty) for the year 2008-09 reached a
new high of Rs. 2,85,337 crore up by 15.3% as compared to Rs. 2,47,457 crore in the
previous year. The Profit After Tax was Rs. 2,950 crore.
For the year 2008-09, IndianOil has received Special Oil Bonds worth Rs. 40,383
crore from the Government of India in addition to Rs. 18,210 crore received from
upstream companies towards subsidy-sharing.
The Gross Refining Margin for April-March 2009 is USD 3.69 per barrel as compared
to USD 9.02 per barrel during the previous year
Marketing
IndianOil maintained its dominance in the market place and clocked the highest ever
level of sales during the year 2010-2011
Domestic sales grew by 5.6% from 59.30 million tonnes in the previous year to 62.6
million tonnes in the year 2010-2011
REFINERIES DIVISION
Indian Oil controls 10 of India‟s 18 refineries – at Digboi, Guwahati,
Thirthahalli, Koyali, Haldia, Mathura, Panipat, Chennai, Narimanam and Bongaigaon
– with a current combined rated capacity of 54.20 million metric tones per annum
(MMTPA)* (one million barrels per day). Indian Oil registered a record throughput of
36.63 millions tones during the year 2004-05 with a capacity utility of 88.6%. Indian
Oil accounts for 42% of India‟s total refining capacity. Overall Energy consumption
of Indian Oil refineries was lowest at 109 MBTU/BBL/NRGF against earlier best of
111, achieved in 2003-04. Gross Refining Margin (GRM) rose by almost one dollar
per barrel during the year 2004-05. It is expected to be the highest at US$ 6.25/bbl
for the year 2004-05 as against $5.30/bbl in 2003-04. All refinery units are accredited
with ISO 9002 and ISO 14001 certifications.
Modernization project of this refinery has been completed and the refinery
now has an increased capacity of 0.65 MMTPA. The Digboi refinery produces
distillates, heavy ends and excellent quality wax from indigenous crude oil produced
at the Assam Oil fields. Petroleum products are supplied mainly to northeastern India
primarily through road and by rail wagons. A new Delayed Coking Unit of 1,70,000
TPA capacity was commissioned in 1999. A new solvent dewaxing unit for
maximizing production of microcrystalline wax was installed and commissioned in
2003. The refinery has also installed Hydrotreater to improve the quality of diesel.
The Guwahati Refinery in North East India – the first Public Sector refinery of
the country-was commissioned in 1962 with a capacity of 0.75 MMTPA which was
subsequently increased to 1.0 MMTPA through debottlenecking projects.The refinery
processing only indigenous crude oil from the Assam oil fields. It supplies petroleum
products to North-Eastern India and surplus products onwards to Siliguri in West
Bengal in 2003. Hydrotreater unit for improving the quality of diesel has been
commissioned in 2002. In 2003, the refinery installed an IndMax Unit a novel
technology developed by Indianoil‟s R & D center for upgrading heavy ends into
LPG, motor spirit and diesel oil.
THIRTHAHALLI REFINERY
C further to its current capacity of 6.0 MMTPA through low cost revamping
and debottlenecking. Matching secondary processing facility such as RFCC (Resid
Fluidised Catalytic Cracker) and hydrotreater facilities for diesel quality improvement
have been added. With the commissioning of the 6.0 MMTPA Haldia-Thirthahalli
crude oil pipeline, the refinery now received imported crude for processing. A CRU
(Catalytic Reformer Unit) was also added to the refinery in 1997 for production of
unleaded motor spirit. Projects are also planned for meeting future fuel quality
requirements. Thirthahalli refinery supplies distillate products beside eastern India to
northern India through a product pipeline to Kanpur in Uttar Pradesh.
GUJARAT REFINERY
HALDIA REFINERY
MARKETING DIVISION
The Marketing Division of IOCL handles the responsibility of delivering
petroleum products to the customers. The Marketing Division has set up various
marketing terminals where storage tanks are built up to hold the products. The
petroleum products are transferred to the marketing terminals by the Pipelines
Division, which charges the Marketing Division for the same. Indian Oil caters to
over 53.2% of India‟s petroleum consumption.
Indian Oil‟s Marketing Network is spread throughout the country with over
23,000 sales points (the largest in the country
The assets of the erstwhile Assam Oil Company were taken over by IOCL in
the year 1981. It is kept as a separate division in IOCL. Assam Oil Division owns the
Digboi refinery and is also into marketing. It owns one petrol pump on the Delhi-
Mathura Road.
MISSION
VISION
VALUES
Towards suppliers
To ensure prompt dealings with integrity, impartiality and courtesy and promote
ancillary industries.
Towards employees
Develop their capability and advancement through appropriate training and career
planning.
Towards community
To develop techno-economically viable and environment-friendly products for the
benefit of the people.
To encourage progressive indigenous manufacture of products and materials so as to
substitute imports.
To ensure safety in operations and highest standards of environment protection in its
manufacturing plants and townships by taking suitable and effective measures.
PRINCIPAL SUBSIDIARIES
Indo Mobil Ltd. (50%); Avi-Oil Ltd. (25%); Indian Oil tanking Ltd. (25%); Petronet
India Ltd. (16%); Petronet VK Ltd. (26%); Petronet CTM Ltd. (26%); Petronet CIPL Ltd.
(12.5%); IndianOil Petronas Ltd. (50%); Indian Oil Panipat Power Consortium Ltd. (26%);
Indian Oil TCG Petrochem Ltd. (50%); Librizol India Pvt. Ltd. (50%).
PRINCIPAL COMPETITORS
IOCL has managed to significantly cut its borrowing cost due to high share of foreign
exchange debt. Its share of foreign exchange borrowings is increasing with foreign exchange
loans crossing 50% of its total debt compared to 42% at the end of the last financial year.
As India's flagship national oil company, Indian Oil accounts for 56% petroleum
products market share, 42% national refining capacity and 67% downstream pipeline
throughput capacity.
The decisions relating to administration are taken at the corporate level. Even minor
proposals are to be referred to the top management. This leads to a delay in decision-making.
Among the public sector oil companies, Indian Oil Corporation is the only one to
follow a weak marketing strategy. It in only in the recent years that the company has started
to market its products. However, still the efforts seem to be weak when compared with the
competitors like BPCL and HPCL.
PROMOTION POLICY
Most of the public sector companies seem to suffer from these lacunae. The
employees are promoted mainly on the basis of experience and not on the efforts and
initiatives displayed by the employee in his work. This results in demotivation and lack of
interest for their work on the part of the hardworking employees, who then tend to shift jobs
to satisfy their need for self-esteem.
TENDER PROCESS
The policy of selection of the lowest bidder tends to affect the quality of the
products/services on some occasions. A more simplistic procedure is also likely to generate
some savings for the company, since tendering process leads to expenses on account of
advertisement.
THREATS
The opening up of the oil sector for private players poses a threat even for this well-
established company. With Indian players like Reliance and Essar and foreign players like
Shell planning their entry into the Indian scenario, the road seems to be tough for Indian Oil.
The Thirthahalli Refinery in Eastern India was commissioned in 1964 with a capacity
of 2.0 MMTPA. The refining capacity was increased to 3.0 MMTPA by 1969 and
Fluidised Catalytic Cracker) and hydrotreater facilities for diesel quality improvement have
been added. With the commissioning of the 6.0 MMTPA Haldia-Thirthahalli crude oil
pipeline, the refinery now received imported crude for processing. A CRU (Catalytic
Reformer Unit) was also added to the refinery in 1997 for production of unleaded motor
spirit. Projects are also planned for meeting future fuel quality requirements. Thirthahalli
refinery supplies distillate products beside eastern India to northern India through a product
pipeline to Kanpur in Uttar Pradesh.
LPG
NAPHTHA
BITUMEN
MOTOR
SULPHUR SPIRIT
ATF
HEAVY
PETROLEUM
STOCK
SKO
HSD
INTEGRATED POLICY
ON
QUALITY, SAFETY, HEALTH & ENVIRONMENT (QSHE)
INDUSTRIAL RELATION
INTRODUCTION
Dynamic and changing: Industrial Relations change with the times, generally
keeping pace with the expectations of employees, trade union, employers` associations, and
other economic and social institution in a society.
Wide coverage: The scope of Industrial Relations is wide enough to cover a vast
territory comprising of grievances, disciplinary measures, ethics, standing orders, collective
bargaining, participatory schemes, dispute settlement mechanisms etc.
08. 1989
The Central Motor Vehicle rules (under motor
vehicle Act, 1988)
This cover section 11-20 and 42-49 & the items covered are related to:
Sec 11:- General cleanliness
Sec 12:- Disposal of wastes and affluent
Sec 13:- Ventilation and temperature
Sec 14:- Free from dust and fumes
Sec 15:- Artificial humidification
Sec 16:- Overcrowding and congestion
Sec 17:- Lighting
Sec 18:- Drinking water
Sec 19:- Kamotes and urinal
Sec 20:- Provision for spittoons
Sec 42:- Washing facility
Sec 43:- Keeping clothing not worn during working hours and for drying of wet clothes
Sec 44:- Sitting for workers who are obliged to work standing
Employers: Employers possess certain rights vis-à-vis labors. They have the right
to hire and fire them. Management can also affect workers’ interests by exercising
their right to relocate, close or merge the factory or to introduce technological
changes.
Employees: Workers seek to improve the terms and conditions of their employment.
They exchange views with management and voice their grievances. They also want
to share decision making powers of management. Workers generally unite to form
unions against the management and get support from these unions.
Government: The central and state government influences and regulates industrial
relations through laws, rules, agreements, awards of court and the like. It also
includes third parties and labor and tribunal courts.
The healthy industrial relations are key to the progress and success. Their
significance may be discussed as under –
High morale – Good industrial relations improve the morale of the employees.
Employees work with great zeal with the feeling in mind that the interest of
employer and employees is one and the same, i.e. to increase production. Every
worker feels that he is a co-owner of the gains of industry. The employer in his
turn must realize that the gains of industry are not for him along but they should
be shared equally and generously with his workers. In other words, complete
unity of thought and action is the main achievement of industrial peace. It
increases the place of workers in the society and their ego is satisfied. It naturally
affects production because mighty co-operative efforts alone can produce great
results.
In countries with a social market economy, such as Austria, Sweden and the
Netherlands, the employers' organizations are part of a system of institutionalized
deliberation, together with government and the trade unions. In tri-partite bargaining
the so-called social partners strike agreements on issues like price levels, wage
increases, tax rates and pension entitlements. In these countries collective
bargaining is often done on a national level not between one corporation and one
union, but national employers' organizations and national trade unions.
Cordial industrial relations and lasting industrial peace require that the causes
of industrial disputes should be eliminated. In other words, preventive steps should
be taken so that industrial disputes do not occur. But if preventive machinery fails
then the Government should activate the industrial Settlement machinery because
non-settlement of disputes proves to be harmful not only for the workers, but also the
management and the society as a whole. The machinery for handling the industrial
disputes has been shown in the following figure:
MACHINERY FOR HANDLING INDUSTRIAL DISPUTES IN THIRTHAHALLI
REFINERY
Preventive Machinery
(Voluntary or Non-statutory)
Settlement Machinery (Statutory)
This is sure that all of us would have heard the saying that prevention is
better than cure. Keeping that in mind let us discuss the prevention machinery before
the settlement machinery. I hope all of you have understood the difference between
the two. If you have not, let me explain it to you. The preventive machinery ensures
that there are no disputes. It aims at creating an environment in which the
employees are allowed to participate and there are very less chances of conflicts. It
is thus proactive in nature. Now don’t tell me that you don’t understand the meaning
of pro activity…Anyhow, pro activity means that actions are taken before there is a
problem. The settlement machinery on the other hand is reactive in nature. After
there is a problem or a dispute, the settlement machinery comes into the picture.
Prevention of industrial disputes:
The preventive machinery has been set up with a view to creating harmonious
relations between labour and management so that disputes do not arise. It
comprises the following measures:
a) Schemes of workers’ participation in management such as works committees,
joint management councils and shop councils and joint councils.
b) Collective bargaining.
c) Tripartite bodies
d) Code of discipline.
Dunlop emphasizes the core idea of systems by saying that the arrangements in
the field of industrial relations may be regarded as a system in the sense that each of
them more or less intimately affects each of the others so that they constitute a
group of arrangements for dealing with certain matters and are collectively
responsible for certain results”. In effect - Industrial relations is the system which
produces the rules of the workplace. Such rules are the product of interaction
Prior to 1991, the industrial relations system in India sought to control conflicts
and disputes through excessive labor legislations. These labor laws were protective
in nature and covered a wide range of aspects of workplace industrial relations like
laws on health and safety of labors, layoffs and retrenchment policies, industrial
disputes and the like. The basic purpose of these laws was to protect labors.
However, these protectionist policies created an atmosphere that led to increased
inefficiency in firms, over employment and inability to introduce efficacy. With the
coming of globalization, the 40 year old policy of protectionism proved inadequate for
Indian industry to remain competitive as the lack of flexibility posed a serious threat
to manufacturers because they had to compete in the international market.
With the advent of liberalization in1992, the industrial relations policy began to
change. Now, the policy was tilted towards employers. Employers opted for
workforce reduction, introduced policies of voluntary retirement schemes and
flexibility in workplace also increased. Thus, globalization brought major changes in
industrial relations policy in India. The changes can be summarized as follows:
The number of local and enterprise level unions has increased and there is a
significant reduction in the influence of the unions.
Under pressure some unions and federations are putting up a united front e.g.
banking.
Another trend is that the employers have started to push for internal unions
i.e. no outside affiliation.
HR policies and forms of work are emerging that include, especially in multi-
national companies, multi-skills, variable compensation, job rotation etc.
These new policies are difficult to implement in place of old practices as the
institutional set up still needs to be changed.
Perspective of IR
Staffing policies should try to unify effort, inspire and motivate employees.
The organization's wider objectives should be properly communicated and
discussed with staff.
Reward systems should be so designed as to foster to secure loyalty and
commitment.
Line managers should take ownership of their team/staffing responsibilities.
Staff-management conflicts - from the perspective of the unitary framework -
are seen as arising from lack of information, inadequate presentation of
management's policies.
The personal objectives of every individual employed in the business should
be discussed with them and integrated with the organization’s needs
The firm should have industrial relations and personnel specialists who advise
managers and provide specialist services in respect of staffing and matters
relating to union consultation and negotiation.
Methods for
prevention of
Industrial Disputes
Labour
Model Standing Joint Management
Code of Discipline Works Committee Welfare Collective Bargaining Suggestion Schemes Tripartite Bodies Joint Councils
Orders Councils
Officers
1. Model Standing Orders: Standing orders define and regulate terms and conditions of
employment and bring about uniformity in them. They also specify the duties and
responsibilities of both employers and employees thereby regulating standards of their
behaviour. Therefore, standing orders can be a good basis for maintaining harmonious
relations between employees and employers.
Under Industrial Dispute Act, 1947, every factory employing 100 workers or more is required
to frame standing orders in consultation with the workers. These orders must be certified
and displayed properly by the employer for the information of the workers.
3. Works Committee: The Industrial Dispute Act, 1947 has provided for the establishment of
works committees. In case of any industrial establishment in which 100 or more workers are
employed, a works committee consisting of employees and workers is to be constituted; it
shall be the duty of the Works Committee to promote measures for securing and preserving
amity and good relations among the employees and workers.
5. Suggestion Schemes:
6. Joint Councils:
8. Labour welfare officer: The factories Act, 1948 provides for the appointment of a labour
welfare officer in every factory employing 500 or more workers. The officer looks after all
facilities in the factory provided for the health, safety and welfare of workers. He maintains
liaison with both the employer and the workers, thereby serving as a communication link
and contributing towards healthy industrial relations through proper administration of
standing orders, grievance procedure etc.
9. Tripartite bodies: Several tripartite bodies have been constituted at central, national and
state levels. The India labour conference, standing labour committees, Wage Boards and
Industries Committees operate at the central level. At the state level, State Labour Advisory
Boards have been set up. All these bodies play an important role in reaching agreements on
various labour-related issues. The recommendations given by these bodies are however
advisory in nature and not statutory.
Conciliation Officer: The appropriate government may, by notification in the official gazette,
appoint such number of persons as it thinks fit to be the conciliation officer. The duties of a
conciliation officer are:
a) To hold conciliation proceedings with a view to arrive at amicable settlement between
the parties concerned.
b) To investigate the dispute in order to bring about the settlement between the parties
concerned.
d) To send a report to the government stating forth the steps taken by him in case no
settlement has been reached at.
Advantages of Arbitration:
It is established by the parties themselves and therefore both parties have good
faith in the arbitration process.
It is based on mutual consent of the parties and therefore helps in building healthy
Industrial Relations.
Disadvantages:
Delay often occurs in settlement of disputes.
b) Compulsory Arbitration: Implies that the parties are required to refer the dispute to
the arbitrator whether they like him or not. Usually, when the parties fail to arrive at
a settlement voluntarily, or when there is some other strong reason, the appropriate
government can force the parties to refer the dispute to an arbitrator.
3. Adjudication: Adjudication is the ultimate legal remedy for settlement of Industrial Dispute.
Adjudication means intervention of a legal authority appointed by the government to make
a settlement which is binding on both the parties. In other words adjudication means a
mandatory settlement of an Industrial dispute by a labour court or a tribunal. For the
purpose of adjudication, the Industrial Disputes Act provides a 3-tier machinery:
a) Labour court
b) Industrial Tribunal
c) National Tribunal
a) Labour Court: The appropriate government may, by notification in the official gazette
constitute one or more labour courts for adjudication of Industrial disputes relating to
any matters specified in the second schedule of Industrial Disputes Act. They are:
Where an Industrial dispute has been referred to a labour court for adjudication, it shall hold
its proceedings expeditiously and shall, within the period specified in the order referring
such a dispute, submit its report to the appropriate government.
b) Industrial Tribunal: The appropriate government may, by notification in the official
gazette, constitute one or more Industrial Tribunals for the adjudication of Industrial
disputes relating to the following matters:
Wages
Rules of discipline
It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submit
its report to the appropriate government within the specified time.
c) National Tribunal: The central government may, by notification in the official gazette,
constitute one or more National Tribunals for the adjudication of Industrial Disputes in
Matters which are of a nature such that industries in more than one state are
likely to be interested in, or are affected by the outcome of the dispute.
It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its
report to the central government within the stipulated time.
The participation may be at the shop level, departmental level or at the top level.
Features of WPM:
1. Participation means mental and emotional involvement rather than mere physical presence.
e. Decisive participation: Highest level of participation where decisions are jointly taken on
the matters relating to production, welfare etc.
Objectives of WPM:
1. To establish Industrial Democracy.
5. To promote increased productivity for the advantage of the organization, workers and
the society at large.
2. Works committee: Under the Industrial Disputes Act, 1947, every establishment
employing 100 or more workers is required to constitute a works committee. Such a
committee consists of equal number of representatives from the employer and the
employees. The main purpose of this committee is to provide measures for securing and
preserving amity and good relations between the employer and the employees.
Amenities such as drinking water, canteens, dining rooms, medical and health
services.
Works committees function actively in some organizations like Tata Steel, HLL, etc
but the progress of Works Committees in many organizations has not been very
satisfactory due to the following reasons:
Lack of competence and interest on the part of workers’ representatives.
Employees consider it below their dignity and status to sit alongside blue-
collar workers.
3. Joint Management Councils: Under this system Joint Management Councils are
constituted at the plant level. These councils were setup as early as 1958. These councils
consist of equal number of representatives of the employers and employees, not
exceeding 12 at the plant level. The plant should employ at least 500 workers. The
Wages, bonus, personal problems of the workers are outside the scope of
Joint management councils. The council is to take up issues related to accident
prevention, management of canteens, water, meals, revision of work rules,
absenteeism, indiscipline etc. the performance of Joint Management Councils have not
been satisfactory due to the following reasons:
Workers’ representatives feel dissatisfied as the council’s functions are
concerned with only the welfare activities.
Trade unions fear that these councils will weaken their strength as workers
come under the direct influence of these councils.
4. Work directors: Under this method, one or two representatives of workers are
nominated or elected to the Board of Directors. This is the full-fledged and highest form
of workers’ participation in management. The basic idea behind this method is that the
representation of workers at the top-level would usher Industrial Democracy, congenial
employee-employer relations and safeguard the workers’ interests. The Government of
India introduced this scheme in several public sector enterprises such as Hindustan
Antibiotics, Hindustan Organic Chemicals Ltd etc. However the scheme of appointment
of such a director from among the employees failed miserably and the scheme was
subsequently dropped.
6. Joint Councils: The joint councils are constituted for the whole unit, in every Industrial
Unit employing 500 or more workers, there should be a Joint Council for the whole unit.
Only such persons who are actually engaged in the unit shall be the members of Joint
Council. A joint council shall meet at least once in a quarter. The chief executive of the
unit shall be the chairperson of the joint council. The vice-chairman of the joint council
will be nominated by the worker members of the council. The decisions of the Joint
Council shall be based on the consensus and not on the basis of voting.
In 1977 the above scheme was extended to the PSUs like commercial and
service sector organizations employing 100 or more persons. The organizations include
hotels, hospitals, railway and road transport, post and telegraph offices, state electricity
boards.
7. Shop councils: Government of India on the 30th of October 1975 announced a new
scheme in WPM. In every Industrial establishment employing 500 or more workmen, the
3. Study absenteeism in the shop or department and recommend steps to reduce it.
4. Suggest health, safety and welfare measures to be adopted for smooth functioning
of staff.
5. Look after physical conditions of working such as lighting, ventilation, noise and
dust.
6. Ensure proper flow of adequate two way communication between management and
workers.
Workers’ participation in Management in India was given importance only after Independence.
Industrial Disputes Act, 1947 was the first step in this direction, which recommended for the setting
up of works committees. The joint management councils were established in 1950 which increased
the labour participation in management. Since July 1975 the two-tier participation called shop
councils at shop level and Joint councils were introduced.
Workers’ participation in Management Bill, 1990 was introduced in Parliament which
provided scope for upliftment of workers.
Reasons for failure of Workers participation Movement in India:
1. Employers resist the participation of workers in decision-making. This is because they feel
that workers are not competent enough to take decisions.
2. Workers’ representatives who participate in management have to perform the dual roles of
workers’ spokesman and a co-manager. Very few representatives are competent enough to
assume the two incompatible roles.
3. Generally Trade Unions’ leaders who represent workers are also active members of various
political parties. While participating in management they tend to give priority to political
interests rather than the workers’ cause.
4. Schemes of workers’ participation have been initiated and sponsored by the Government.
However, there has been a lack of interest and initiative on the part of both the trade unions
and employers.
6. The focus has always been on participation at the higher levels, lower levels have never been
allowed to participate much in the decision-making in the organizations.
7. The unwillingness of the employer to share powers with the workers’ representatives, the
disinterest of the workers and the perfunctory attitude of the government towards
participation in management act as stumbling blocks in the way of promotion of
participative management.
2. Employers and workers should agree on the objectives of the industry. They should
recognize and respect the rights of each other.
3. Workers and their representatives should be provided education and training in the
philosophy and process of participative management. Workers should be made aware of the
benefits of participative management.
4. There should be effective communication between workers and management and effective
consultation of workers by the management in decisions that have an impact on them.
5. Participation should be a continuous process. To begin with, participation should start at the
operating level of management.
Modern scholars are of the mind that the old adage “a worker is a worker, a manager is a
manager; never the twain shall meet” should be replaced by “managers and workers are
partners in the progress of business”
2. To protect the interests of the workers through collective action and by preventing
unilateral actions from being taken by the employer.
6. It is a two-way process. It is a mutual give and take rather than a take home all
method of arriving at a solution to a dispute.
Preparation for
Negotiation
Negotiation
Negotiated Agreement
Ratification of Agreement
Implementation of Agreement
1. Preparation for Negotiation: Preparation for
negotiation in Collective Bargaining is as important as the negotiation process itself. Upto 83%
of the outcomes are influenced by pre-negotiation process. Such preparation is required for
both management as well as the union representatives. From the management’s point of
view, pre-negotiation preparation is required as:
Draft for likely decisions should be prepared in advance so that the final agreement
draft can be prepared as soon as the negotiation process is over.
From the employees’ side also, preparation is required for the following reasons:
The union should collect the information related to the financial position of the
company and their ability to pay the employees.
The union must also be aware of the various practices followed by other companies
in the same region or industry.
The union must assess the attitudes and expectations of the employees over
concerned issues so that the outcome of negotiations does not face any resistance
from them.
2. Identifying issues for Bargaining: The second step in bargaining process is the determination
of issues which will be taken up for negotiations. The different types of issues are:
The wage and benefits issues are the ones which receive the greatest amount of attention
on the bargaining table.
3. Negotiation: When the first two steps are completed, both parties engage in actual
negotiation process at a time and place fixed for the purpose. There a re two types of
negotiations:
Boulwarism: In this method, the management themselves takes the initiative to find out
through comprehensive research and surveys the needs of the employees. Based on the
analysis of the findings, the company designs its own package based on the issues to be
bargained. Thereafter, a change is incorporated only when new facts are presented by the
employees or their unions.
Continuous Bargaining: Involves parties to explore particular bargaining problems in joint
meetings over a long period of time, some throughout the life of each agreement. The basic
logic behind this method is that all persistent issues can be addressed through continuous
negotiation over a period of time. The success of negotiations depends on the skills and
abilities of the negotiators.
4. Initial negotiated agreement: When two parties arrive at a mutually acceptable agreement
either in the initial stage or through overcoming negotiation breakdown, the agreement is
recorded with a provision that the agreement will be formalized after the ratification by the
respective organizations.
6. Implementation of agreement: Signing the agreement is not the end of collective bargaining,
rather it is the beginning of the process when the agreement is finalized, it becomes
operational from the date indicated in the agreement. The agreement must be implemented
according to the letter and spirit of the provisions made by the agreement agreed to by both
parties. The HR manager plays a crucial role in the day-to-day administration implementation.
RESEARCH
METHODOLOGY
RESEARCH DESIGN
Meaning of research
“Research in common parlance refers to a search for knowledge”. Research can be explained as a
movement, a movement from known to unknown. It is actually a voyage of discovery.
Research always starts with a question or problem.
Its purpose is to find answers to questions through the application to the scientific
method.
It is a systematic and intensive study directed towards a more complete knowledge of the
subject studied.
So Research is scientific and systematic search for gaining information and knowledge on a
specific topic or phenomena.
Research Design
“Research Design is the plan and structure of investigation so conceived as to obtain
answers to research questions.”
Nature of Research
Descriptive Research design is used for study.
Descriptive research as the name suggests is designed to describe something – for example the
characteristics of users of a given product ; the degree to which product use varies with income,
age, sex or other characteristics; or the number who saw a specific television commercial.
To be of maximum benefit, a descriptive study must only collect data for a definite purpose.
Your objective and understanding should be clear and specific. It is a kind of survey method.
This project study is related with the inventory management so the data is collected in this regard
only.
I studied the various types of inventory through out the training period.
TYPES OF DATA
This project is mainly based on the secondary data and information beside this primary
data is also used.
1) Primary data:- primary data are to be collected by the researcher , they are not present
in reports or journals etc. and can be collected through a number of method which can be
classified as follow
Primary data for my project : The primary data for my research is the dispatch registers
maintained by the company to know the purchase and stock of inventory in the organization.
2) Secondary data:- Secondary data are the data collected for some purpose other than the
research situations; such data are available from the sources such as books, company reports,
Internets.
Book and journals.
Company reports.
Census department.
Research work of others.
Secondary data for my project: Mainly the used in this project is secondary. The data is the
already maintained in the manuals.
SURVEY PERIOD
Survey period is of few weeks from June 14th, 2010 to July 27th, 2010. It is not enough periods
for the study to get the accurate a specific result of the study.
ANALYSIS
&
INTERPRETATION
SATISFIED 15 37.5
DISSATISFIED 25 62.5
I. R. Rating
70
60
50
40 satisfied
dissatisfied
30
20
10
YES 35 87.5
NO 5 12.5
90
80
70
60
50 satsisfied
40 dissatisfied
30
20
10
0
SATISFIED 30 75
DISSATISFIED 10 25
90
80
70
60
50 satsisfied
40 dissatisfied
30
20
10
0
SATISFIED 25 62.5
DISSATISFIED 15 37.5
70
60
50
40 satsisfied
30 dissatisfied
20
10
SATISFIED 33 82.5%
DISSATISFIED 7 17.5%
90
80
70
60
50 satsisfied
40 dissatisfied
30
20
10
SATISFIED 32 80
DISSATISFIED 8 20
80
70
60
50
satsisfied
40
dissatisfied
30
20
10
0
SATISFIED 17 42.5
DISSATISFIED 23 57.5
60
50
40
satsisfied
30
dissatisfied
20
10
SATISFIED 18 45
DISSATISFIED 22 55
60
50
40
satsisfied
30
dissatisfied
20
10
SATISFIED 8 20
DISSATISFIED 32 80
80
70
60
50
satsisfied
40
dissatisfied
30
20
10
0
SATISFIED 5 12.5
DISSATISFIED 35 87.5
90
80
70
60
50 satsisfied
40 dissatisfied
30
20
10
0
1) 37.5% Employees are satisfied, and 62.5% dissatisfied with the working condition
provided by the IOC Ltd.
2) Majority of Employees are aware about the welfare schemes provided by the IOC
Ltd.
3) Majority of Employees are satisfied with the salary and incentives provided by
the IOC Ltd.
4) 62.5% Employees are satisfied, with the rest room facility provided by the IOC
Ltd.
5) Majority of Employees are satisfied with the drinking water facility provided by
the IOC Ltd.
7) 42.5% of Employees are satisfied, 57.5% are dissatisfied with the compensation
provided by the IOC Ltd.
8) Majority of Employees are dissatisfied with the medical benefits provided by the
IOC Ltd.
9) Majority of employees are dissatisfied with the retirement benefits provided by the
IOC Ltd.
10) Majority of employees are dissatisfied with the recreation facilities provided by the
IOC Ltd.
11) 60% satisfied and remaining employees are dissatisfied with the transport
facilities provided by the IOC Ltd.
12) 40% are dissatisfied with the grievance handling procedure of the company.
3) It is possible that respondents might have tried to maintain consistency in terms of their
responses.
4)time of 6-8 weeks are also very less for the study.
2) I also found that there is no medical Officer. This is needed to provide quick action in case
of any accident.
3)there should be need of improvement in recreation facilities provided by the Indian Oil
corporation Ltd.
4)there should need to increase the retirement benefits provided by the Indian Oil
Corporation Ltd.
5)management should provide wage revision to the employees which is due from January
2007.
6)internal management should be more strong so that it can create more healthy working
conditions in the organization.
3) Are you satisfied with the wages and incentives provided by IOC Ltd.?
a)Yes b) No
7) Are you satisfied with the medical benefits provided by IOC Ltd?
a)Yes b)No
9) Are you satisfied with the recreation facilities provided by the company?
a)Yes b)No
10)Are you satisfied with the transport facility provided to you by the IOC Ltd?
a)yes b)No
11)Is there any kind of grievance handling procedure provided to you by the IOC Ltd?
a)yes b)No
12)Are you satisfied with the grievance handling procedure provided to you by the company?
a)yes c)No
13)if there any suggestion regarding to improve the industrial relation operation in IOC
Ltd.please mention here