ASSIGNMENT BASED ON MANAGERIAL

INDUSTRIAL RELATIONS

ASSIGNMENT No.-- 1 .

Submitted To:- Prof. Harsandeep Kaur

Submitted By : - Dhananajay Chhabra

Roll no. :- 16908

Class :- BBA – 3 rd

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 Q.1 Industrial Relations meaning and Definition. Objectives of IR.

Ans Meaning And Defination Of Industrial Relation

The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’.
“Industry” refers to “any productive activity in which an individual (or a group of
individuals) is (are) engaged”. By “relations” we mean “the relationships that exist
within the industry between the employer and his workmen.”. The term industrial
relations explains the relationship between employees and management which stem
directly or indirectly from union-employer relationship.

The concept of industrial relation has been defined using various terminologies , but in
the strictest sense , it is essentially the relatinship between the management and
labour. The full concept of industrial relation is organizationand practiceof multi –
pronged relationship -between labour and management , unions and labour , unions
and manangement in an industry.

Dale Yoder defines it as a “ whole field of relationship that exist because of the
necessary collaboration of men and women in the employement process of an industry
.”

A good industrial relation contributes towards improvement in production and smooth

functioning of the organisation.

According to the International Labour Organization (ILO), “Industrial Relations deal with
either the relationship between the state and employers and workers organizations or
the relation between the occupational organizations themselves.”

Every organization strives to induce good industrial relations. To ensure industrial

peace and avoid laobur unrest like strikes, gheraos, demonstrations, slogan shouting,
work stoppages etc.; healthy work relationships must exist for the development and
promotion of harmonious labour-management relations which has become very
important in the modern industrial society.

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Objectives Of Industrial Relations

1. Uninterrupted Production and Increased Productivity:

The objective of IRs is to keep the production process/ services running so that target of
production / services set by organization is attained and also to increase productivity to
-enable the organization to grow and develop.

2. Less/Zero Conflict:
If, better industrial relation is established both management and workers develop
mutual understanding and put in best efforts to resolve disputes through bilateral
discussion, negotiation. So, conflicts are minimized if, not reduced to zero.

3. Industrial Peace and Harmony:

The sound industrial relations bring industrial peace and harmony while unsound
industrial relations create situation/ climate of disharmony, industrial unrest and
conflict.

4. Contented and Committed Workforce:

The objective of industrial relations is to create a contented and committed workforce
by way of increasing their wages, providing fringe benefits, social security measures,
opportunities to develop, grow etc. This is done through establishment of healthy
industrial relations.
5. Dynamic Workforce:
Sound industrial relations create a dynamic workforce to get acquainted with the
changing scenario, to know the organization needs, demands, place in the competitive
race and to help the organization to survive, grow and develop. IR policies, procedures
are framed to give emphasis on workers’ involvement, participation in decision making
process, to develop competencies through training, education, counselling.

6. Management of Organizational Complexity:

In view of liberalization, privatization and globalization (LPC) organization has to face a
tough competition as multinational companies (MNCs), transnational companies (TNCs)
occupy a place in the market. For producing quality product and also variety of
products different sophisticated machines, devices with complicated operation

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 processes are installed, which need workforce to accept changes, update knowledge,
skill.
Sound industrial relations through developing human relations, understanding, mutual
confidence and enriching knowledge, imparting training to enhance the level of
competence and skill, manage the organizational complexities.

7. Developing Trade Unions:

If union leaders, active members are educated, aware of changing environment, position
of the organization where rank and file work and also rights, duties and responsibilities of
the workers, most of the workers’ problems are solved by themselves. So, it is one of the
objectives of IRs is to educate trade union people and to support and develop them to act
as real trade unions for the right cause of the workers and for growth and development of
the workers and the organization as well.

8. Cordial Human Relations:

One of the objectives of IRs is to promote employer employee relations i.e. human
relations through effective interaction and communication process. Organization
philosophy, climate, management approach, style of functioning facilitate to develop
mutual understanding,
mutual faith between boss and subordinates.

9. Educating Workers:
Because of illiteracy, ignorance workers are unable to judge the specific situation, issues
and give consent or agree to take recourse to action which is unjustified, unwarranted and
uncalled for. IRs’ objective is to educate the workforce, to develop their skill, ability to
perceive the situation rightly, to make them aware of their strength and weaknesses so
that they can negotiate their grievances, issues, problems with their boss and can resolve
them.

10. Promoting Trust, Creativity and Cooperativeness:

Sound industrial relations create a conducive and congenial climate in organization which
promotes trust, creativity and cooperativeness amongst the workers.
Under such organizational milieu, workers develop a feeling of ‘belongingness’, ‘we-ness’,
‘together-ness’ which drive them to undertake any job for making things happen. Workers
become loyal, committed, particular about their job role, and make no/less wastes,
accident. Labour turnover rate, absenteeism rate are reduced.

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 Q.2 Explain in detail perspective of Industrial Relations .

Ans Industrial Relations is a set of phenomena operating both within and outside the
workplace, concerned with determining and regulating the employment relationship. Scholars
have described three major theoretical perspectives or frameworks, that contrast in their
understanding and analysis of workplace relations. The three important perspectives on
industrial relations are generally known as Unitarism, Pluralism and Marxism. Each offers a
particular perception of workplace relations and will therefore interpret such events as
workplace conflict, the role of unions and job regulation differently.

The three major perspectives on Industrial Relations are;

1. Unitary Perspective

In unitarism, the organization is perceived as an integrated and harmonious system, viewed

as one happy family. A core assumption of unitary approach is that management and staff,
and all members of the organization share the same objectives, interests and purposes; thus
working together, hand-in-hand, towards the shared mutual goals. Furthermore, unitarism
has a paternalistic approach where it demands loyalty of all employees. Trade unions are
deemed as unnecessary and conflict is perceived as disruptive.

From employee point of view, unitary approach means that:

 Working practices should be flexible. Individuals should be business process improvement

oriented, multi-skilled and ready to tackle with efficiency whatever tasks are required.
 If a union is recognized, its role is that of a further means of communication between groups
of staff and the company.
 The emphasis is on good relationships and sound terms and conditions of employment.
 Employee participation in workplace decisions is enabled. This helps in empowering
individuals in their roles and emphasizes team work, innovation, creativity, discretion in
problem-solving, quality and improvement groups etc.
 Employees should feel that the skills and expertise of managers supports their endeavors.

From employer point of view, unitary approach means that:

 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.

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 2. Pluralistic Perspective

In pluralism the organization is perceived as being made up of powerful and divergent

sub-groups – management and trade unions. This approach sees conflicts of interest and
disagreements between managers and workers over the distribution of profits as normal
and inescapable. Consequently, the role of management would lean less towards
enforcing and controlling and more toward persuasion and co-ordination. Trade
unions are deemed as legitimate representatives of employees. Conflict is dealt
by collective bargaining and is viewed not necessarily as a bad thing and if managed could
in fact be channeled towards evolution and positive change. Realistic managers should
accept conflict to occur. There is a greater propensity for conflict rather than harmony.
They should anticipate and resolve this by securing agreed procedures for settling
disputes.

The implications of the pluralistic approach to industrial relations include:

 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.
 Independent external arbitrators should be used to assist in the resolution of disputes.
 Union recognition should be encouraged and union representatives given scope to carry
out their representative duties
 Comprehensive collective agreements should be negotiated with unions

3. Marxist Perspective

Marxist perspective is also called radical perspective. This perspective is to reveal the
nature of the capitalist society. It thinks that workplace relations are against the history.
It recognizes inequalities in power in the employment relationship and in wider society
as a whole. Consequently, conflict is perceived as an inevitable result. Whats more, a
natural response regarding workers against the capitalism exploitation is seen as trade
unions. This view of industrial relations is a by product of a theory of capitalist society
and social change. Marx argued that:

 Weakness and contradiction inherent in the capitalist system would result in revolution
and the ascendancy of socialism over capitalism.
 Capitalism would foster monopolies.
 Wages (costs to the capitalist) would be minimized to a subsistence level.
 Capitalists and workers would compete/be in contention to win ground and establish
their constant win-lose struggles would be evident.

This perspective focuses on the fundamental division of interest between capital and
labor, and sees workplace relations against this background. It is concerned with the
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 structure and nature of society and assumes that the conflict in employment relationship
is reflective of the structure of the society. Conflict is therefore seen as inevitable and
trade unions are a natural response of workers to their exploitation by capital.

Q.3 Explain Industrial Relations : Concept, Importance , Scope and

Aspects

Ans CONCEPT

The concept of industrial relations means the relationship between the employees and
management in the day to day working of an industry. The Indian IR scenario has been
rapidly changing with the opening up of the liberalized economy and the subsequent
inflow of Multinational Corporations (MNCs).

There has been a major effect on the macro economic aspect on the structure of the
labour market (productivity, employment and wages), also on the structure of IR
(number of unions, collective bargaining, labour legislation, industrial conflict and state
intervention).These transformations have brought in changes on the growth pattern of
the economy.

Industrial relations have a broad as well as a narrow outlook. Originally, industrial

relations were broadly defined to include the relationships and interactions between
employers and employees. Industrial relations cover all aspects of the employment
relationship, including human resource management, employee relations, and union
management (or labor) relations.

The meaning has become more specific and restricted. Industrial relations pertains to the
study and practice of collective bargaining, trade unionism, and labor management
relations, while human resource management is a separate, largely distinct field that
deals with nonunion employment relationships and the personnel practices and policies
of employers.

The main concept of industrial relations are

1. Preservation and promotion of economic interest of workers along with social interest
2. Peace and productivity goes hand in hand hence. attempt to reduce industrial dispute and
promote peace is a necessity.
3. Employer employee relation should be made healthy and growing
4. Running of the industry, day to day work should be made more democratic with increasing
workers participation

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5. Producing products at a very competitive price so that country can promote export and
our economy can improve.
6. Bringing mental revolution in management.

IMPORTANCE

Industrial relations are human relations in industry. The importance of the human factor in
an industrial organisation is beyond question. Better management of industrial relations in
an industry is a sine qua non for the success of the industrial concern. It results in industrial
peace which is essential for the countries, particularly for India, where the economy is being
geared in a planned way to ameliorate the lot of the masses.

Interacting between management and workers and between worker and worker are regular
features in industry and these constitute industrial relations. So, the importance of industrial
relations in industry is self-evident and does not need any elucidation.

Industrial peace must be maintained at any cost to ensure better performance in industry.
Industrial relations should be so maintained that it would contribute to increased
productivity. Industrial relations have their impact not only on the industrial unit but also on
the society.
Industrial friction may inflict lasting injury on the workers. It may affect their careers.
Families of workers are likely to suffer which must have repercussion on the society as a
whole. Industrial unrests and conflicts foment class-hatred, embitter mutual relations, and
put a hurdle in the development of the society and the nation.

Industrial relations are the key for increased productivity in industrial establishments.

For example, at the Alwar plant of Eicher Tractors, productivity went up from 32 per cent
between 1994 and 1996 to 38 per cent in 1997. The production of engine cylinders has gone
up from 29, 390 (in 1995-96) to 32, 501 (in 1996-97).This increase has been possible because
of peaceful industrial relations.

SCOPE

The scope of industrial relations seems to be very wide. It includes the establishment and
maintenance of good personnel relations in the industry, ensuring manpower development,
establishing a closer contact between persons connected with the industry and that between
the management and the workers, creating a sense of belonging in the minds of

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 management, creating a mutual affection, responsibility and regard for each other,
stimulating production as well as industrial and economic development, establishing a good
industrial climate and peace and ultimately maximising social welfare.

The scope of industrial relations includes:

(a) Relationship among employees, between employees and their superiors or managers.

(b) Collective relations between trade unions and management. It is called union-
management relations.

(c) Collective relations among trade unions, employers' associations and government .

ASPECTS

In an industrial unit different people are working. They are employers, executives,
supervisors and workers. They inter-act and create a relationship called industrial
relations. Working at these people together affect not only labour relations but
social, political and economic life.

But under industrial relations following aspects can be included:

(a) Promotion of development of healthy industrial relations at plant and industry
level.
(b) Maintenance of industrial peace and avoidance of disputes.
(c) Promotion of industrial democracy through participation schemes.
(d) Group relations, i.e., relations between various groups of workmen.
(e) Community relations, i.e., relations between industry and society.
(f) Promotions and development of healthy labour-managements relations.
(g) Prevention of industrial disputes and maintenance of industrial peace and
harmony.

Q.4 Explain Causes and Effects of Poor Industrial Relations

Ans CAUSES

 Economic Causes
 Organizational Causes
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 Social Causes
 Psychological Causes
 Political Causes

ECONOMIC CAUSES
Poor wages and poor working conditions are the main reasons for unhealthy relations among
management and labour. Unauthorized deductions from wages, lack of fringe benefits,
absence of promotional opportunities, dissatisfaction with job evaluation and performance
appraisal methods, faulty incentive schemes are other economic causes.

Organisational Causes
Faulty communication system, dilution of supervision and command, non-recognition of
trade unions, unfair practices, violation of collective agreements and standing orders and
labour laws are the organisational causes of poor relations in industry.

Social Causes
Uninteresting nature of work is the main social cause. Factory system and specialisation have
made worker a subordinate to the machine. Worker has lost sense of pride and satisfaction
in the job. Tensions and conflicts in society break up of joint family system, growing
intolerance have also led to poor employer-employee relations. Dissatisfaction with job and
personal life culminates into industrial conflicts

Psychological Causes
Lack of job security, poor organisational culture, non-recognition of merit and
performance, authoritative administration and poor interpersonal relations are the
psychological reasons for unsatisfactory employer-employee relations

Political Causes
The political nature of trade unions, multiple unions and inter-union rivalry weaken
trade union movement. In the absence of strong and responsible trade unions,
collective bargaining becomes ineffective. The union‘s status is reduced to a mere
strike committee.

EFFECTS OF POOR INDUSTRIAL RELATIONS

(1) Effect on Workers:

(i) Loss of wages,
(ii) Physical injury or death on account of violence during labour unrest,
(iii) Excesses by employers,
(iv) Economic losses,

(2) Effect on Employers/Industrialists:

(i) Less production,

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 (ii) Less Profit,
(iii) Bad effect on organisation,
(iv) Bad effect on human relations,
(v) Damage to machines and equipments,

(3) Effect on Government:

(i) Loss of revenue (less recovery of income tax, sales tax, etc.),
(ii) Lack of order in society,
(iii) Blame by different parties.

(4) Effect on Consumers:

(i) Rise in prices,(ii) Scarcity of goods,(iii) Bad effect on quality of goods.

Q.5 Meaning and Concept of Trade Unions . Characteristic of Trade Unions

.General Feature of Trade Unions.

Ans MEANING

Labour unions or trade unions are organizations formed by workers from related fields that
work for the common interest of its members. They help workers in issues like fairness of
pay, good working environment, hours of work and benefits. They represent a cluster of
workers and provide a link between the management and workers.

A trade union is a continuous association of wage earners for the purpose of maintaining and
improving the conditions of their working lives. Under the Trade Union Act of 1926, the term
is defined as “any combination, whether temporary or permanent, formed primarily for the
purpose of regulating the relations between workers and employers, or for imposing
restrictive conditions on the condition of any trade or business and includes any federation
of two or more unions”. Let us examine the definition in parts.

Trade union is an association either of employees or employers or of independent workers.

It is a relatively permanent formation of workers. It is not a temporary or casual combination

of workers.

It is formed for securing certain economic (like better wages, better working and living
conditions), social (such as educational, recreational, medical, respect for individual) benefits
to members. Collective strength offers a sort of insurance cover to members to fight against
irrational, arbitrary and illegal actions of employers. Members can share their feelings,
exchange notes and fight the employer quite effectively whenever he goes off the track.

CONCEPT

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A trade union is an association of employees for the primary purpose of effecting their
employers’ decisions about their better working conditions of employment. The basic
objective of a trade union is, therefore, to represent the interest of its members. It seeks to
get benefits for them. Trade unions can also be regarded as an institution for overcoming
managerial dictatorship to strengthen individual worker and to provide him an opportunity
for regulating and improving the conditions under which he has to work.
Trade unions play an important role in preventing the exploitation of employees in the
hands of management. Over the years, the relationship between management and
workers has changed from master and servant to employer and employee. The hire and
fire policy of the management can be dispensed with the intervention of trade unions, who
fight for the rights of workers.
Without the formation of trade unions, employees can get the rights at their individual level,
because their bargaining position tends to be weak and they stand at the lower ebb in the
organisation. With the unionism, they can collectively press for their genuine demands, and
improve their position in the society.

CHARACTERSTICS

1. Association of employees:

A trade union is essentially an association of employees belonging to a particular class of

employment, profession, trade or industry. For example, there are unions for teachers,
doctors, film, artistes, weavers, mine workers and so on.

2. Voluntary Association:

An employee joins the trade union out of his free will. A person cannot be compelled to join
a union.

3. Permanent Body:

A trade union is usually a permanent body. Members may come and go but the trade union
remains.

4. Common Interest:

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 The member of a trade union have certain matters of common interest-job security, better
pay and working conditions and so on, which bring them together.

5. Collective Action:

Even when an individual employee has any grievance over certain management decisions,
the matter is sorted out by the intervention of the trade union Employees are able to initiate
collective action to solve any problem concerning any particular employee or all the
employees.

FEATURES

The main features of a trade union are as under:

1. It is an association either of employers or employees or of independent workers.

They may consist of :
o Employers’ association (eg. Employer’s Federation of India,Indian paper mill
association, etc.)
o General labor unions
o Friendly societies
o Unions of intellectual labor (e.g. All India Teachers Association)
2. It is formed on a continuous basis. It is a permanent body and not a casual or temporary
one. They persist throughout the year.
3. It is formed to protect and promote all kinds of interests –economic, political and social-
of its members. The dominant interest with which a union is concerned is, however,
economic.
4. It achieves its objectives through collective action and group effort. Negotiations and
collective bargaining are the tools for accomplishing objectives.
5. Trade unions have shown remarkable progress since their inception; moreover, the
character of trade unions has also been changing. In spite of only focusing on the
economic benefits of workers,the trade unions are also working towards raising the
status of labors as a part of industry.

Q.6 Explain role and functions of Trade Unions

Ans ROLE AND FUNCTIONS OF TRADE UNIONS:-

1. Protections – Trade unions safeguard workers against all sorts of exploitations by

the employer and political parties. A union provides protection from unfair labour

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practices and atrocities of management. It also tries to revise the status of workers
in industry and society.

2. Proper Standard of Living – Unions attempt to secure for workers fair wages,
proper working conditions and welfare facilities like health, housing, recreation and
social security so as to ensure desirable living standards for them.
3. Grievance Redressal – A trade union takes up the individual and collective
grievance of workers with employer.

4. Collective Bargaining – A trade union negotiates and bargains with the

management to settle terms and conditions of employment.
5. Participation – Trade unions works for achieving a better say of workers in the
management of matters which directly influence the interests of workers. In this
way, unions attempt establish democracy in industry.

6. Protects – Unions, organise demonstrations strikes and other forms of protest to

press the demand of worker. During a strike the union may provide financial and
other help to members when the employer stops wages.

7. Education – Many trade unions make arrangements for the education of worker
and their family members. Unions make worker conscious of their rights –
and duties and aware of the need for technological changes.

8. Welfare and Recreation – Some union provides recreation, sports and other
welfare facilities for their members.

9. Legislations – Trade union lobby with political parties and political readers to
secure legislative protection for workers from the government.

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10. Representation – Trade union represents working class in various national and
international forums such as Indian labour conference and international labour
organisation.

11. Advice – A trade union may provide advice and information to management on
human resource policies and practices. Unions also impress upon workers the need
to exercise restraints in the use of their rights. Unions assist employers in
maintaining discipline and in increasing productivity.

12. Communication – A trade union serves as a link between employers and

workers so as to develop mutual understanding and cooperation between the two
sides. Unions can also instill among workers a sense of responsibility towards
industry and society. They can play a vital role in tackling social evils and in
promoting national integration.

13. Intra-Mural Function – These functions are termed as militant functions too
because unions may resort to strikes and other pressure tactics to get their demand
implemented. Intramural functions include wage rises, proper working conditions,
sanitation, safety, continuity in employment and so on. The unions try to resolve
these issues through collective bargaining. If discussions and meetings do not help in
resolving these issues then unions use strikes and other pressures as tool in getting
these demands accepted.

14. Extra-Mural Functions – Trade unions also undertake functions which are
required for the welfare of their members. These functions include provisions of
educational, recreational and housing facilities.
The unions raise funds in the form of subscription from members and spend them
for the welfare of workers.

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 In case of untimely deaths, unions provide financial help to the member of the
decreased family. Extramural functions are very important as they inculcate the
spirit of co-operation against members.

15. Social Functions – These functions include carrying out social service activities,
discharging social responsibility through various section of the society like educating
the customers.

Q: 7 Explain evolution of trade union in India

Ans EVOLTION OF TADE UNION IN INDIA

Trade union is a direct product of Industrialization and a very recent development. In

India, the foundation of modern industry was laid between 1850 and 1870. Prior to that
trade was confined to individuals and families like craftsmen and artisans. They had
expertise and specialized skills which was inherited by their off springs. After Industrial
revolution,these people started losing their individual identities and had to join
factories to earn their livelihood and compete with mass production. There was a
psychological dislocation as they were losing their identities.Indian trade union
movement can be divided into three phases.

FIRST PHASE

The first phase falls between 1850 and 1900 during which the inception of trade unions
took place. During this period of the growth of Indian Capitalist enterprises, the
working and living conditions of the labor were poor and their working hours were
long. Capitalists were only interested in their productivity and profitability. In addition
to long working hours, their wages were low and general economic conditions were
poor in industries. In order to regulate the working hours and other service conditions
of the Indian textile labourers,the Indian Factories Act was enacted in 1881. As a result,
employment of child labor was prohibited. Mr. N M Lokhande organized people like

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Rickshaw walas etc., prepared a study report on their working conditions and
submitted it to the Factory Labor Commission. The Indian Factory Act of 1881was
amended in 1891 due to his efforts. Guided by educated philanthropists and social
workers like Mr. Lokhande, the growth of trade union movement was slow in this
phase. Many strikes took place in the two decades following 1880 in all industrial
cities.These strikes taught workers to understand the power of united action even
though there was no union in real terms. Small associations like Bombay Mill-Hands
Association came up.

SECOND PHASE

The second phase of The Indian trade union movement falls between 1900 and 1947.
This phase was characterized by the development of organized trade unions and
political movements of the working class. It also witnessed the emergence of militant
trade unionism. The First World War (1914-1918) and the Russian revolution of 1917
gave a new turn to the Indian trade union movement and organized efforts on part of
the workers to form trade unions. In 1918, B P Wadia organized trade union
movements with Textile mills in Madras. He served strike notice to them and workers
appealed to Madras High Court because under ‘Common Law’, strike is a breach of law.
In 1919, Mahatma Gandhi suggested to let individual struggle be a Mass movement. In
1920, the First National Trade union organization(The All ndia Trade Union Congress
(AITUC)) was established. Many of the leaders of this organization were leaders of the
national Movement. In 1926, Trade union law came up with the efforts of Mr. N N Joshi
that became operative from 1927.

THIRD PHASE
The third phase began with the emergence of independent India (in 1947),and the
Governments ought the cooperation of the unions for planned economic development.
The working class movement was also politicized along the lines of political parties. For
instance Indian national trade Union Congress (INTUC) is the trade union arm of the
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 Congress Party. The AITUC is the trade union arm of the Communist Party of India.
Besides workers, white-collar employees,supervisors and managers are also organized
by the trade unions, as for example in the Banking, Insurance and Petroleum industries.

Q.8 Explain Essentials of a Successful Trade Union .

Ans To be successful, a trade union should be an enlightened one and it should be

able to guide and direct the trade union movement effectively.

It should have a sound foundation so that it is strong enough to achieve success

in the realisation of the outlined objectives.

The objectives of a trade union should be properly communicated to all the

members of the union and employees outside the union so that outside
employees within the organisation may be attracted towards it. Preferably, the
trade union should be led by rank and file workers.

A trade union should have integrity and honestly in dealing with financial
matters. There should not be any room for misappropriation of funds. A trade
union should use its economic power in a careful and responsible way. It should
be aware of the existing realities in terms of the opportunities it has to bring
about an improvement in the leaving standards of labour. A trade union should
be a democratic agent between workers and management.

A trade union should not be contented with protecting and improving wages and
conditions of work of their members but should be concerned with the interest
of workers, their emotional disturbances, their martial conflicts, their personal
adjustment problems. The trade unions should assist in progressively raising the
standard of living of workers and promote their personality development
through educational programmes.

Most importantly, trade unions should maintain industrial harmony and peace,
and battle fruitfully with the employers and if necessary with the State at the
bargaining table so that the employers do not victimize the workers. Trade
unions should be pluralist in character and pragmatic in their approach and
should concentrate on the welfare of the members and society.

Necessary conditions for making trade unions more effective are as follows

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i. Compulsory Membership:
A trade union is based on its organizational strength. The trade union should
possess maximum membership in order to consolidate itself as an organization.
In order to make trade unions effective instruments of labor welfare, it is
important that all the workers should become its members compulsorily. A
nominal membership will not be working in this area. To make a trade union
more effective, all the workers should be actively associated with the work of the
trade union.

Strong Economic Base:

For a successful functioning of the trade union, it not only needs members but
also a strong monetary base. The trade unions need large funds to support their
members in times of emergency such as strikes and lockouts. The trade unions
do not have special means of collecting funds. So, it is necessary that all the
members contribute regularly for their working. However, the membership fee
differs from one firm to another taking various other factors into consideration.

Freedom from External Pressures:

Trade unions should function as independent organizations. They should be free
from any external pressure or control. Various political parties do try to influence
the trade unions, as they are more concerned about their selfish ends rather
than the workers’ welfare.

Spirit of Unity:
A trade union is based on the spirit of unity and sacrifice among its members.
Trade unions are able to function only on the strength of unity. For solving any
problem, unity among the members of the trade union is very important.

Capable Leadership:
Capable and efficient leaders are required for the successful working of the trade
unions. A person who is dedicated and thinks about the welfare of the workers

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should lead a trade union. Few trade unions are quite selfish and use the workers
for their own selfish ends.

Thus, it is very important that the leadership of the trade unions should be given
to those who are genuine and selfless and interested in the welfare of the
workers. The leader of the trade union should himself be a worker, because only
a worker can understand the problems of the workers.

vi. Practical Outlook:

The main aim of the trade unions is to look after the interests of the labor and
promote their social and economic welfare. These aims can only be achieved in
the context of industrial prosperity. Therefore, it is important to consider the
economic and monetary conditions off the industry in order to achieve the social
and economic well-being of the workers.

In this context, it is necessary that a trade union should adopt a practical attitude
to all the problems and act only if the problem is practical and if there is a
possibility to meet the actual conditions. Unreasonable demands will create
conflicts and disharmony.

Democratic Outlook:
The democratic structure in a trade union contributes to its successful working.
By democratic structure we mean that the opinion of each and every member
should be taken into account. While exercising the privilege of vote in trade
union affairs, the member develops a sense of dignity and makes a mark of his
importance. This helps to keep up his morale and loyalty. It is always preferred
that the workers themselves should choose the leaders of the trade unions
democratically.

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 Freedom from Politics:
Political interference greatly undermines the importance of trade unions.
Sometimes, the union leaders forget their main aims and indulge in politics.
These kinds of leaders do not benefit the workers rather harm their interests.

Q. 9 Explain meaning and concept of Discipline. Causes of Indiscipline.

Essentials of a Good Disciplining system.

Ans Industrial discipline refers to orderly working of the employees of an industrial

undertaking in accordance with established rules, regulations and conventions. Discipline is
a force that prompts an individual to observe rules, regulations and procedures to attain an
objective. In the broad sense, discipline means orderliness — the opposite of confusion. In
an organization, discipline is the orderly conduct of its members. Industrial discipline can
thus be defined as “the orderly conduct of affairs by the members of an industrial
organization who adhere to its necessary regulations because they desire to co-operate
harmoniously in forwarding the end which the group has in view and willingly recognize
that to do this, their wishes must be brought into a reasonable union with requirements of
the group in action.”

Mary C. Niles traces the origin of the word discipline to root meaning “to learn”.
According to her, the purpose of discipline is not to punish the workers but to help
them learn proper conduct.

Discipline is essential for any successful activity and, where it refers to industrial
discipline, it essentiality gets an added value. In industrial organizations, discipline is
a must. The condition of complete peace and harmony as opposed to chaos is a very
important factor for the success of an industrial unit.

Causes of indiscipline:

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Indiscipline breeds mainly managerial faults and lapses.

The lapses are:

(1) Arbitrary disciplinary measures taken by the managerial staff

(2) Deferring or neglecting the settlement of employee grievances.

(3) Favouritism and nepotism in promotions and placements

(4) Too much bossing temperament of the management staff

(5) Communication gap between the management and the ordinary staff

(6) Lack of appropriate supervision at the operating level

(7) Use of ‘secret police’ method to collect information

(8) Provocation by union leaders

(9) Factionalism

(10) Personal animosity and jealousy

Essentials of Good Disciplinary system:

Knowledge of Rules

The employee must be informed clearly about what constitutes good behavior and
the rewards that may emanate from it. All instructions should be clear and
understandable. It is common sense that an employee will obey an instruction more
readily if he understands it. The supervisor himself must know all the rules. He
cannot effectively communicate with his workers if his own knowledge about rules
is half baked. In fact, he needs to know more than the barest minimum that he

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wants his workers to know. This reserve of knowledge is essential in order to be able
to answer several unexpected question from workers. In other works, a supervisor’s
span of knowledge and understanding of rules should be greater than that of his
workers. If this is not so, the supervisor will lose personal prestige both before his
supervisors and subordinates.

2. Prompt Action

All violations and misconducts-big and small-should be promptly inquired into. For
example, a supervisor is most unwise to wait until lunch break before rebuking a
worker for arriving late. Beat the iron when it is hot. This is because when the
penalty is imposed immediately following the violation of a rule the person
punished tends to identify the punishment with the act he committed. Accordingly,
the subordinate attempts to avoid the violation in future. This is called the “law of
effect”. The greater the delay the more one forgets and the more one feels that
punishment is not deserved.

3. Fair Action

Promptness of disciplinary action at the cost of its fairness is not proper. An action
in order to be fair must possess the following characteristics: o All violations-big and
small-should be duly punished. A violation should not be overlooked or condoned
merely because it is small otherwise this will give an impression that announced
rules are meaningless. All individuals-big and small-should receive equal
punishment for equal indiscipline. If a rule is applied to one individual but not to
another, the management is bound to be accused of favoritism. o Discipline should
be uniformly enforced at all times. If management soft-pedals on taking a
disciplinary action when there is shortage of labor and toughens its policy when
labor is plentiful it is acting arbitrarily. Similarly, if the management overlooks a
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wrong on one occasion and punishes it on another occasion it is acting
inconsistently. Inconsistent behavior of management leads to uncertainty in the
minds of subordinates. They simply do not know where they stand. o The alleged
violation should be fully inquired into. Making a mistake by hastily administering a
penalty which on the basis of facts collected later on is found to be uncalled for will
mean a permanent destruction of the morale of the punished worker and general
loss of face for the supervisor. o The employee should always be given an
opportunity to explain his action. The common law principle that an offender is
innocent until he is proved guilty beyond doubt should be followed. The burden of
proving the violation always lies on the management.

4. Well Defined Procedure

The procedure to be followed to reach to a penalty decision should be carefully laid

down. It should include the following steps: o The supervisor must assure himself
that some violation of the rules has taken place. o He should state precisely and
objectively the nature of the alleged violation. o He should then proceed to gather
full facts about the case and maintain proper records. Facts will have to be gathered
concerning the nature of the event, the participants and the surrounding
circumstances. Extenuating circumstances such as ill-health, family troubles, etc.,
should be found out. A critical analysis should be made of the person’s background
such as his past service record, length of service, local practice, etc. Fact gathering is
often a process of factsifting. Opinions should not be mistaken for facts. The
methods used for gathering the fact must not smack of spying and statements
should not be prejudged. o After all the facts have been gathered, thought should
be given to the various types of disciplinary action which can be taken in the case in
question. It is advisable to prepare three separate lists of actions. The first list
should include all types of disciplinary action to make certain that no possibility is
overlooked. The second list should classify penalties according to rank in order to

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acquaint the executive with those actions which lie within his command and those
for which he should refer the case to his superiors. The third list should include only
those penalties, which the offense in question specifically calls for. o The
appropriateness of a disciplinary action should be decided in terms of its
effectiveness in correcting the employee. This is very important because the
purpose of a disciplinary action is to mend an employee and not to punish him, to
help him and not to harm him. o The accused employee should have the right to
appeal to higher authorities.

5.Constructive Handling of Disciplinary Action

Disciplinary action should be handled in a constructive manner. It should be carried

out by the immediate line supervisor. This employee should be told not only the
reasons for the action taken against him but also how he can avoid such penalties in
future. Disciplinary action should be taken in private. By exposing an employee to
public ridicule the supervisor attacks his dignity and social standing. This may
produce an opposite effect on the employee. He may react violently or may become
obstinate to preserve his ego. It is most unwise for a supervisor to take a general
disciplinary action against a group of subordinates. Disciplinary action is a matter for
the individual. It is the individual who should be held responsible for any wrong. A
management which takes disciplinary action against a group is likely to set off a
wave of unrest associated with falling morale and even the possibility of wildcat
strike. After the disciplinary action has been taken the supervisor must assume a
normal attitude towards the employee. He should revert to his role of a helping
hand-as if nothing has happened. This is possible only when the supervisor uses an
impersonal approach in administering a penalty. He should not engage in personal
25 ridicule, insult or even criticism. He should avoid getting into an argument. In
short, he must play the role of a judge enforcing the law with impartiality.

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Q.10 Collective Bargaining Defination , Characterstic of Collective Bargaining ,
Types of Bargaining. Process of Collective Bargainig . Advantages and
Disadvantages of Collective Bargainig ?

DEFINATION

The term collective bargaining is made up of two words, ‘collective’ – which means a ‘group
action’ through representation and ‘bargaining’, means ‘negotiating’, which involves
proposals and counter-proposals, offers and counter-offers. Thus it means collective
negotiations between the employer and the employee, relating to their work situations.
The success of these negotiations depends upon mutual understanding and give and take
principles between the employers and employees.

The phrase collective bargaining is made up of two words collective which

implies group action through its representatives; and bargaining which suggests
haggling and / or negotiating. The phrase, therefore, implies collective
negotiation of a contract between the management’s representatives on one
side and those of the workers on the other. Thus collective bargaining is defined
as a process of negotiation between the employer and the organized workers
represented by their union in order to determine the terms and conditions of
employment.
Stevens: Collective Bargaining as a ‘social control technique for reflecting and
transmitting the basic power relationships which underlie the conflict of interest
in an industrial relations system.’

Characteristics Of Collective Bargaining


It is a group process, wherein one group, representing the employers, and the other,
representing the employees, sit together to negotiate terms of employment.

Negotiations form an important aspect of the process of collective bargaining i.e., there
is considerable scope for discussion, compromise or mutual give and take in collective
bargaining.

Collective bargaining is a formalized process by which employers and independent

trade unions negotiate terms and conditions of employment and the ways in which
certain employment-related issues are to be regulated at national, organizational and
workplace levels.

Collective bargaining is a process in the sense that it consists of a number of steps. It

begins with the presentation of the charter of demands and ends with reaching an
agreement, which would serve as the basic law governing labor management relations

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over a period of time in an enterprise. Moreover, it is flexible process and not fixed
or static. Mutual trust and understanding serve as the by products of harmonious
relations between the two parties.
Collective bargaining is a complementary process i.e. each party needs something that
the other party has; labor can increase productivity and management can pay better for
their efforts.

Collective bargaining tends to improve the relations between workers and the union on
the one hand and the employer on the other.

Collective Bargaining is continuous process. It enables industrial democracy to be

effective. It uses cooperation and consensus for settling disputes rather than conflict
and confrontation.

Collective Bargaining Types

Distributive bargaining:
It involves haggling over the distribution of surplus. Under it, the economic issues like
wages, salaries and bonus are discussed. In distributive bargaining, one party’s gain is
another party’s loss. This is most commonly explained in terms of a pie. Disputants can
work together to make the pie bigger, so there is enough for both of them to have as
much as they want, or they can focus on cutting the pie up, trying to get as much as
they can for themselves. In general, distributive bargaining tends to be more
competitive. This type of bargaining is also known as conjunctive bargaining.
Integrative bargaining:
This involves negotiation of an issue on which both the parties may gain, or at least
neither party loses. For example, representatives of employer and employee sides may
bargain over the better training programme or a better job evaluation method. Here,
both the parties are trying to make more of something. In general, it tends to be more
cooperative than distributive bargaining. This type of bargaining is also known as
cooperative bargaining.

Attitudinal restructuring:
This involves shaping and reshaping some attitudes like trust or distrust, friendliness or
hostility between labour and management. When there is a backlog of bitterness
between both the parties, attitudinal restructuring is required to maintain smooth and
harmonious industrial relations. It develops a bargaining environment and creates trust
and cooperation among the parties.
Intra-organizational bargaining:
It generally aims at resolving internal conflicts. This is a type of manoeuvring to achieve
consensus with the workers and management. Even within the union, there may be

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differences between groups. For example, skilled workers may feel that they are
neglected or women workers may feel that their interests are not looked after properly.
Within the management also, there may be differences. Trade unions manoeuvre to
achieve consensus among the conflicting groups.

Collective bargaining process :-

1. Prepare:
This phase involves composition of a negotiation team. The negotiation team should
consist of representatives of both the parties with adequate knowledge and skills for
negotiation. In this phase both the employer’s representatives and the union examine
their own situation in order to develop the issues that they believe will be most
important. The first thing to be done is to determine whether there is actually any
reason to negotiate at all. A correct understanding of the main issues to be covered and
intimate knowledge of operations, working conditions, production norms and other
relevant conditions is required.
2. Discuss:
Here, the parties decide the ground rules that will guide the negotiations. A process
well begun is half done and this is no less true in case of collective bargaining. An
environment of mutual trust and understanding is also created so that the collective
bargaining agreement would be reached.
3. Propose:
This phase involves the initial opening statements and the possible options that exist to
resolve them. In a word, this phase could be described as ‘brainstorming’. The
exchange of messages takes place and opinion of both the parties is sought.
4. Bargain:
Negotiations are easy if a problem solving attitude is adopted. This stage comprises the
time when ‘what ifs’ and ‘supposals’ are set forth and the drafting of agreements take
place.
5.Settlement:
Once the parties are through with the bargaining process, a consensual agreement is
reached upon wherein both the parties agree to a common decision regarding the
problem or the issue. This stage is described as consisting of effective joint
implementation of the agreement through shared visions, strategic planning and
negotiated change.

Advantages Of Collective Bargaining

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It encourages greater economic growth.
When collective bargaining agreements govern the workplace, then the distribution of
income throughout society begins to balance itself out. At the peak of unionization, in
the 1940s and 1950s, there were periods of strong economic growth and minimal
income inequality.

Collective bargaining offers a consistent workplace for all parties.

Most states in the U.S. use contractual employment through an at-will status. That
means employers or employees can terminate their working relationship at their
discretion. This practice sometimes creates inequality in bargaining power, as an
individual worker seeking collective bargaining for themselves could be terminated just
because they pursued that action.

Collective bargaining encourages relationship formation.

People negotiated in good faith more often when there is an established relationship
governing their work. That doesn’t mean employers and employees must become
friends for the formation of a contract. There is a need for open lines of communication
to be continually available for both sides to prosper in negotiations. When each side
focuses on meeting their primary needs only, that’s when a collective bargaining
agreement often fails to support the requirements of the workplace.

There is no requirement for collective bargaining to be an eternal contract.

Most collective bargaining arrangements are contracts which last for a specific period,
usually somewhere between 2-5 years in length. Both sides in the negotiation may
request shorter or longer contracts based on what they require.

Disadvantages Of Collective Bargaining

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It is used as a political tool.
Collective bargaining is often associated with Democratic political fundraising efforts.
The same Amazon training video mentioned in point #2 even mentions this
characterization to workers, targeting Republicans and conservatives in their approach
to prevent unionization. That means an undercurrent of political discrimination is
sometimes used as a way to keep workers “in line” with employer expectations.

Collective bargaining changes the workplace.

Most collective bargaining agreements involve union representation working with the
management of the corporation which hires employees. Several companies discourage
unionization because it typically increases the cost of doing business. Unions actively
recruit in the workplace too, seeking to improve their numbers to generate more
leverage when the next contract comes due.

All workers are bound by a collective bargaining agreement.

The stipulations in most collective bargaining agreements require all parties working for
a corporation to follow the rules outlined by the contract. That means a worker could
start their job there without any influence on the negotiation process, then be bound
by those rules without exception until the next contract period allows them to express
concerns.

It creates tension in the workplace.

Union workers score consistently lower than non-union workers on the Work
Environment Index published by Gallup and Healthways. Both groups are satisfied with
their jobs, but union workers complain more often than their managers act like a boss
instead of a partner. Union representation also reduces the amount of trust and
openness found in the workplace.

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