SUMMER TRAINING PROJECT

ON

“OVERVIEW OF INDUSTRIAL RELATION MANAGEMENT

IN FOOD CORPRATION OF INDIA”

SUBMITTED IN PARTIAL FULFILLMENT REQUIREMENT OF

BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.)GENERAL

B.B.A 5TH SEMESTER

BATCH 2017-2020

SUBMITTED TO: SUBMITTED BY:

MRS. SONAL AGGRAWAL SHIKHA
(PROJECT GUIDE) 02621901717

MEERA BAI INSTITUTE OF TECHNOLOGY (GOVT. OF NCT OF DELHI)

MAHARANI BAGH
 CERTIFICATE

This is to certify that project entitled “OVERVIEW OF INDUSTRIAL RELATION

MANAGEMENT IN FOOD CORPRATION OF INDIA” submitted by Ms. Shikha
has been done under my guidance and supervision in fulfillment of the requirement
for the award of Bachelor of Business Administration (General).

The work and analysis mentioned in this project report have been undertaken by the
candidate herself and necessary references have been registered and acknowledged in
the text of the report.

MRS.SONAL AGGRAWAL
(PROJECT GUIDE AND LECTURER)

MEERA BAI INSTITUTE OF TECHNOLOGY

 ACKNOWLEDGEMENT

The project “OVERVIEW OF INDUSTRIAL MANAGEMENT MANAGEMENT

IN FOOD CORPRATION OF INDIA” as a challenging assignment for me as it
required an improved environment, extensive endeavor and all necessary support. I
take this an opportunity to express my gratitude to MRS. SONAL AGGRAWAL, my
project guide for her able guidance, cooperation and out of the box thinking without
which this project would not have been exciting at all.
The successful progression of my project also gives me the opportunity to
acknowledge and appreciate the staff of the college that provided me much needed
stimulating suggestions and encouragement in order to steer this project towards
completion.

(Sign)

( Shikha )

(02621901717)
 DECLARATION

I hereby declare that the work, which is being presented in the project, entitled
“OVERVIEW OF INDUSTRIAL RELATION MANAGEMENT IN FOOD
CORPRATION OF INDIA” is an authentic record of my own work carried out by me
under the supervision and guidance of MRS. SONAL AGGRAWAL, Project Guide,
Meera Bai Institute Of Technology, Maharani Bagh , New Delhi. This project was
undertaken as a part of the curriculum of “Guru Gobind Singh Indraprastha
University, Delhi” for the fulfilment of BBA from “Meera Bai Institute Of
Technology, Maharani Bagh, New Delhi”. I have not submitted the matter embodied
here in this project for the award of any other degree/diploma.

(Sign)

( Shikha )

(02621901717)
 TABLE OF CONTENTS

S.NO. PARTICULARS PAGE NO.

1. ABSTRACT

2. CHAPTER-1
 Introduction To The Topic
 Objectives Of The Study
 Literature Review
 Research Methodology
 Limitations Of The Study

3. CHAPTER-2
 Company Profile

4. CHAPTER-3
 Data Analysis And Interpretation

5. CHAPTER-4
 Finding And Conclusion
 ABSTRACT

The objective of the study is to analyze industrial relations management and its
importance in Food Corporation of India. FCI was setup under the Food
Corporation’s Act 1964, in order to fulfill the objective of Food policy that is to
provide farmers remunerative prices, distribution of food grains throughout the
country for public distribution system and maintaining satisfactory level of
operational and buffer stocks of food grains to ensure national food security. In its 50
years of service to the nation, FCI has played a significant role in India's success in
transforming the crisis management oriented food security into a stable security
system.
Industrial relation is a multidisciplinary field that studies the employment
relationships. Industrial relations encompass the relationship between the
management and workmen and the role of a regulatory body to resolve any industrial
dispute. The healthy industrial relations are key to the progress and success. Their
significance may be discussed as under uninterrupted production. The most important
benefit of industrial relations is that this ensures continuity of production. It helps
promoting co-operation and increasing production. Industrial relations is increasingly
being called employment relations or employee relations because of the importance
of non industrial employment relationships, this move is sometimes seen as further
broadening of the human resource management trend. Indeed some authors now
define human resource management as synonyms as employee relations. Other
authors see employee relations as dealing only with non unionized workers, whereas
labour relation is seen as dealing with unionized workers. Industrial relations study
various employment situations, not just ones with a unionized workforce.
However according to Bruce E. kaufman “To a large degree, most scholars regard
trade unionism, collective bargaining and labour management relations, and the
national labour policy and labour law within which they embedded, as the core
subjects of the field.
The importance of the study is that without industrial growth, economic progress is
not possible, however much the industrial growth may be chaired and achieved,
various complex problems arise in the field of labour as a result of industrialization,
such as unfavorable work environment, lack of basic amenities, constant
dissatisfaction bickering regarding low wages and other personal problems. If
attention is not given on time, it may lead to frequent absenteeism, high labour
turnover, migration and inefficiency of production work. Industrial relations can be
improved by creating atmosphere of mutual cooperation, effective communication,
strong unions and effective implementation of agreements.
 CHAPTER-1

INTRODUCTION
 INDUSTRIAL RELATIONS MANAGEMENT

The concept of industrial relations means the relationship between employees and
management in the day-to-day working industry. But the concept has a wide meaning.
When taken in the wider sense, industrial relations are a "set of functional
interdependence involving historical, economic, social, psychological, demographic,
technological, occupational, political and legal variables". According to Dale Yoder,
industrial relations are a whole field of relationship that exists because of the
necessary collaboration of men and women in the employment process of an industry.
The concept of industrial relations has been extended to denote the relations of the
state with employers, workers, and their organizations. The subject therefore includes
individual relations and joint consultations between employers and work people at
their work place collective relations between employers and their organizations and
trade unions and part played by the state in regulating these relations. Definition and
concept of Industrial Relations The term ‘Industrial Relations’ comprises ‘Industry’
and ‘relations’. Industry means “any productive activity in which an individual is
engaged”, and relations mean “the relations that exist in the industry between the
employer and his workmen.” Observers like Dr. Kapoor say, “ Industrial Relations is
a developing and dynamic concept and as such no more limits itself merely to the
complex of relations between the unions and management but also refers to the
general web of relationships normally obtaining between employees- a web much
more complex than the simple concept of labor capital conflict.” Different authors
have defined industrial relations in somewhat different way.
Industrial relations are a multidisciplinary field that studies the employment
relationship. Industrial relations is increasingly being called employment relations or
employee relations because of the importance of non-industrial employment
relationships; this move is sometimes seen as further broadening of the human
resource management trend. Indeed, some authors now define human resource
management as synonymous with employee relations. Other authors see employee
relations as dealing only with non-unionized workers, whereas labor relations is seen
as dealing with unionized workers. Industrial relations studies examine various
employment situations, not just ones with a unionized workforce.
However, according to Bruce E. Kaufman "To a large degree, most scholars regard
trade unionism, collective bargaining and labor-management relations, and the
national labor policy and labor law within which they are embedded, as the core
subjects of the field." Initiated in the United States at end of the 19th century, it took
off as a field in conjunction with the New Deal. However, it is generally a separate
field of study only in English-speaking countries, having no direct equivalent in
continental Europe. In recent times, industrial relations have been in decline as a
field, in correlation with the decline in importance of trade unions, and also with the
increasing preference of business schools for the human resource management
paradigm Industrial relations has three faces: science building, problem solving, and
ethical. In the science building phase, industrial relations is part of the social sciences,
and it seeks to understand the employment relationship and its institutions through
high-quality, rigorous research. In this vein, industrial relations scholarship intersects
with scholarship in labor economics, industrial sociology, labour and social history,
human resource management, political science, law, and other areas.
Industrial relations scholarship assumes that labour markets are not perfectly
competitive and thus, in contrast to mainstream economic theory, employers typically
have greater bargaining power than employees. Industrial relations scholarship also
assumes that there are at least some inherent conflicts of interest between employers
and employees (for example, higher wages versus higher profits) and thus, in contrast
to scholarship in human resource management and organizational behaviour, conflict
is seen as a natural part of the employment relationship. Industrial relations scholars
therefore frequently study the diverse institutional arrangements that characterize and
shape the employment relationship—from norms and power structures on the shop
floor, to employee voice mechanisms in the workplace, to collective bargaining
arrangements at company, regional, or national level, to various levels of public
policy and labour law regimes, to "varieties of capitalism" (such as corporatism,
social democracy). When labour markets are seen as imperfect, and when the
employment relationship includes conflicts of interest, then one cannot rely on
markets or managers to always serve workers' interests, and in extreme cases to
prevent worker exploitation. Industrial relations scholars and practitioners therefore
support institutional interventions to improve the workings of the employment
relationship and to protect workers' rights. The natures of these institutional
interventions, however, differ between two camps within industrial relations. The
pluralist camp sees the employment relationship as a mixture of shared interests and
conflicts of interests that are largely limited to the employment relationship. In the
workplace, pluralists therefore champion grievance procedures, employee voice
mechanisms such as works councils and labour unions, collective bargaining, and
labour-management partnerships. In the policy arena, pluralists advocate for
minimum wage laws,
Objective Of Industrial Relation in Food Corporation Of India

(i) To create healthy relations between employees and employers.

(ii) To minimize industrial disputes.
(iii) To generate harmonious relations among all concerned with production process.
(iv) To improve the productivity of workers.
(v) To provide workers their appropriate position by considering them partners and
associating them with management process.
(vi) To provide the workers their due profit share, improve their working conditions
and thereby eliminating the chances of strikes and lockout etc.
 OBJECTIVES OF THE STUDY

1. To understand the industrial relation in FCI.

2. To analyse industrial relation policy and its importance in FCI.
3. To find the nature of relationships in and between different
organizational levels.
4. To assess the relationship between Employees, Unions and
Employers.
 REVIEW OF LITERATURE

Rajni Pathania (2012) examines the Industrial relation in India in the Era of
liberalization. The focus of this study is trends in Intensity of industrial disputes, its
causes and the growth of TU in India during the year 1992 - 2011.Results indicates
that there is acceptable IR in India, due to the growth of TU and continuous decline in
industrial strikes and lockout during the said study period.

Apoorva Ghosh (2012) ―A Contemporary Model for Industrial Relations Relook

from Global Perspective attempts to query what IR is and analyzes the ways in
which it has been defined and understand since its beginning. This paper attempts to
suggest a model for IR, so that it can involve all the addressed as well as unaddressed
issues. Afterward, this model tested with what have been the academic opinions of
how IR should change & respond to the existing realities. The article concludes by
proposing empirical testing of this model in the service economy of post-industrial
era when we have knowledge workers instead of blue-collar workers, flat team-based
structures instead of hierarchy and participative control rather than bureaucracy.

Abhishek Gupta (2014) in his study entitled, ―Trade Unions & Industrial Relations,
has described that, over the last 20 years, there has been considerable debate about the
impact of TU on Productivity, and the implications of different types of labour-
market arrangements for economic performance. The most effective way of
improving competitiveness is to weaken TU and remove the regulatory structures &
rules that restrict managerial decision-making. This research has reviewed a key point
to come into view is the importance of the IR climate in improving organizational
performance. A positive and cooperative labour management relationship, with
extensive joint decision-making, appears to be advantageous to greater organizational
efficiency.

Sian Moore & Stephanie Tail by (2015) expressed their views in his research paper
under title heading ―The changing face of employment relations: equality and
diversity‖. The principle of this paper is to explore what has happened to the concept
& reality of equal pay over the past 50 years in the UK. It does so in the context of
women employment levels based on labour market participation though their
continued overrepresentation in part-time employment, locating the narrowed but
persistent overall gender pay gap in the UK. Finally, this paper suggests the need of a
legal framework in order to establish wages equality.
 Priya Shrivastava (2015), The New Age Path of Industrial Relations, she has
described that the main architecture of the Indian IRS was established prior to
Independence and leftovers mostly untouched. The nature of this system is highly
centralized and the Govt. is the main arbitrator between capital & labour. This article
provides a broad overview IR and the labour market reform debate that has arisen in
the context of economic changes in India. The structure of the Indian labour market,
the overwhelming size of the informal or `unorganized' workforce, and its location
outside the industrial system is the fundamental challenge facing Indian IRS.

Rajesh H & Dr. P.K. Manoj, (2013), Industrial Relations in the State‖ has concluded
that to avoid conflicts or disputes, an organization should ensure Code of Conduct
that each individual organism must follow the Code of Discipline in the organization
formulated by the Govt. and made applicable to management and employees.
Encourage the mutual trust between the two main actors of IRS should help to
manage cooperation, confidence and respect, between the employees and
management. The authors suggest establishing the followings in order to minimize
the ID: (1) Works Committees (2) Process of CB (3) Wage Boards (4) Grievances
Procedures (5) Standing Orders (6) Joint Management Councils, and (7) Suggestion
System.

Archna Bhat & Ravikant Swami (2014) described that the tendency of industrial
conflicts in our country, right from the economic reforms due to changes in
composition & structure base. This study found that number of work disputes,
mandays lost, and workers' involvement in disputes showed a gradual decline over
the recent years. The numbers of workers involved in strikes were more than the
number of workers involved in lockouts and the man-days lost in lockouts were more
than the man-days lost in strikes. Intolerance, indiscipline & violence were found to
be the prime causes of industrial disputes. Production losses due to disputes were
higher in the private sector than the public sector. The study concluded that economic
reforms certainly have shifted the power in the hands of the employees.

Sushmita Srivastava (2011) under the topic ―Commitment & Loyalty to Trade
Unions: revisiting Gordon‘s & Hirschman‘s Theories‖. This article presents an
integrated model of the process by which union commitment & loyalty are developed
& retained by TU. She argues on the need to view commitment & loyalty as two
distinct constructs. The objective is to start re- conceptualization of the differences
between union loyalty & union commitment by revisiting Gordon's Four Factor
Theory of Commitment and Hirschman's Exit Voice Loyalty Theory. The paper finds
that TU participation is better induced through union loyalty than union commitment.
 J. S. Sodhi, (2013) ―Trade Unions in India: Changing Role and Perspective reflects
the TU economic contribution in the context of the strong past legacy. The thrust of
TU activities has been to engage in the traditional functions of welfare & economic
improvement of workers. TU, working in tandem with the Govt. in the first three
decades after independence, ensured that workers were well protected and given all
the benefits. In view of the globalization challenges, there is a steady change and the
managements & unions are entering into CB contracts for improvements in
productivity of the organization

Santosh Govind Gangurde (2014), ―The Indian Trade Union Movement: New
Challenges‖ put forward his research paper on has illustrated that the Labour market
regulations and CB have emerged as crucially important issues in a globalized
economy. Given that globalization without doubt involves economic restructuring,
the promoter of globalization – World Bank & IMF – increasingly argue that
employment has to be sufficiently adaptable to assist adjustment & stress on
flexibility in labour markets. Undoubtedly, this has led to reduced job – security and
in formalization of labour markets. In this picture today TU face a multitude of
challenges from various quarters. The factors like diversity of interests of the working
class, the new management techniques that blunt union tactics, the forces of
globalization etc., all constitute challenges to the effective working of TU today. In
the view of the changing concerns, TU will have to reorient their strategies if they
want to successfully meet the new challenges. Paul Nowak (2015), ―The Past and
Future of Trade Unionism‖ expressed his views in his research paper under title
heading. This paper concludes that the last past five decades has been a period of
change and turbulence for the movement, and suggests that this trend will likely be
remaining in the decades to come. Although external political & economic aspects
will have an important bearing on unions‘scenario, he finally argues that unions
remain powerful agents of change in their own right and that a revival of organized
labour is not beyond question.

Rhokeun Park (2015), ―Employee participation and outcomes: organizational

strategy does matter expressed his views in his research paper under title heading.
The principle of this paper is to investigate the mediating role of Perceived
Organizational Support in the relationship between WPM and organizational
commitment, and the moderating role of organizational strategy in those
relationships. He found that Perceived Organizational Support mediated the
relationship between employee participation and organizational commitment, and that
participation practices were related more strongly to Perceived Organizational
Support and Organizational Commitment in companies with a prospector or analyzer
strategy than in companies with a defender strategy
CONCLUSION

S .K. Khola & O.S. Yadav (2012), includes various aspects of HRM, IR and relevant
legal provisions concerning the settlement of industrial disputes and possible
improvements have been presented and discussed in his study The views expressed in
this paper will be quite useful in handling and solving the problems that are crucial in
context of the HRD, for better management and for maintaining peaceful and
productive environment in any industrial establishment. Considering all the elements
such as employer & employee relationship, TU activities, involvement of the state to
regulate & control the relations in industries, the term IR can be taken to stand for
TU, Employers & Govt. relationships in employment.

Simon Deakin & Antara Haldar (2015) examines the current policy dialogue around
the Labour Law reforms in India. Building labour market institutions is a long-term
process which requires investment in state capacity for the management of risks
associated with the transition to a formal economy. This research paper stated that the
Labour Law Reform is currently on the political agenda in our country, particularly in
the governance of Modi-led Govt. India‘s labour laws are almost five decades old and
are said to suffer from inflexibilities that vulnerable for economic development.
Worker-protective labour laws are discouraged FDI and cut out the growth of
employment in India. The strict regulation of employment retrenchments in Part V-B
of the Industrial Disputes Act-1947 has been a particular focus of criticism. Critics of
this law say that it aims larger plants & enterprises for regulation and simultaneously
discourages the growth of small firms. Devi Suman (2014) verifies that WPM can be
considered as an advanced form of Worker-Management Teamwork. It is an icon of
joint and cordial relationship, which explains the extent of adjustment between the
workers & management for the maintenance of peaceful and harmonious environment
in the organization. A main aim of this scheme is to help in increasing production and
productivity and sharing the gains of productivity.
 RESEARCH METHODOLOGY

Type of Research:-
The objective of descriptive research is to provide a description of various
phenomenon’s connected to individuals, situations or evets that occur. The purpose
might be to develop empirical generalization. Once, such generalizations begins to
appear, then they are worth explaining, which might lead to theory development.
Moreover, descriptive research is often used when a problem is ell structured and
there is no intention to investigate cause/effect relationship.
The objective with explanatory research is to analyse cause/effect relationship,
explaining, because explanatory study is to develop a theory that could be used to
explain the empirical generalization that as developed in the descriptive stage. This
provides a cycle of theory construction, theory testing and theory reformulations, this
research is descriptive research which objective is that to get the accurate answers
from the respondents combination of items from the frame of statistical explanation
which quantifies the risk and thus enables an appropriate sample size to be chosen,
descriptive studies require a clear specification of who, what, when, where why and
how of the research.

Research Design :-

Acc. To Green et al.(2008) Research design is “The specification of methods and

procedures for acquiring the information needed. It is the overall operational pattern
of network of the project that stipulates what information is to be collected from
which sources by what procedures. If it is good design, it will insure that the
information obtained is relevant to the research questions and that it was collected by
objective and economical procedures”.

This study is and consist of Descriptive Research in nature because it has a structured
Design and consists of both primary and secondary sources of Data collection, Closed
Ended and Open Ended questionnaire has been used to gather the information. For
depicting the data/results Graphs, tables and pie charts has been used.

Nature of Research :- The study is in descriptive in nature.

Sampling Frame :- Employees of FCI

Sample size :- In the study of this research, sample size is 30.

Sampling Technique :- Purposive Sampling Technique have been used.

Data Collection Technique And Sources :-

Primary Data – It is original, problem or project specific and collected for the
specific objectives and needs spelt out by the researcher. The authenticity and
relevance is reasonably high. For the research following instrument has been used:

1. Questionnaire – A self-administered questionnaire was used, in which both

closed and open ended questions were included/for the study.

2. Hardcore Interaction with the employees and Personal observation.

Secondary Data – It is that information which is not topical or research specific

and has been collected and compiled by some other researcher or investigative body.
The said information is recorded and published in a structured format and thus is
quicker to access and manage.

For the research secondary data is collected through-

1. Corporation’s profile
2. Journals
3. FCI’s internal published circulars.
4. FCI’s industrial relation policy guidelines.