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In traditional sense trade unions are continuous association of wage-earners for the
purpose of maintaining of improving the conditions of their working lives Trade unions
form a crucial component of the modern industrial system of a country, operating under
respective constitutional mechanisms, adhering to the globally accepted principles laid
down by organisations such as ILO.
Importance of Trade Union There have been instances of protest and dissatisfaction
among several trade unions regarding changes in Labour laws and policies introduced
by the government in recent years. Further, different unions have called for
Bandh(Blockade) at different points of time, featuring in news regularly. In this
perspective, studying the Trade Unions, their historical development is necessary.
The need of Trade Unions Representation of collective stand and power of collective
bargaining have been important for the growth of a stable working population across
several economies. This has also contributed in workers securing better wages, job
security, improvement in working conditions, more equitable sharing of the wealth
created by them Continuity and support to stated policy has lent stability to the
industrial production, and for the protection of the interest of both the workers and
investors or industrialists. Right to form a Trade Union is guaranteed as a fundamental
right under Article 19 (1) (c) of the Indian Constitution.
History of Labour Unions in India The trade unions genesis stemmed from the necessity
of the time, protecting and securing the interest, presenting the collective demands,
grievances of the industrial worker, from the second half of the nineteenth century, with
establishment of industries. Poor working conditions, undue long working hours were
the concerns for the workers.
Although the Unions formed in the second half of the 19th century, they had limitations
in effectively functioning as trade unions, they nevertheless were effective social unions,
presenting the demands collectively, with an orientation to reform the ills. Development
of such trade unions was closely in sync with the development of the Industry in India.
In India, the first trade union came up in Bombay, after the establishment of textile mills
in the 1850s. Trade unions came up in Calcutta in 1854, with the establishment of Jute
Mills. Sohrabji Shapuri Bengali and C.P. Mazumdar were the leaders and early pioneers
of the labour unions uprising. The first factory Commission set up in 1879 studied the
problems of industrial workers.
First trade union under the leadership of Narayan Meghji Lokhande -‘Bombay Millhands
Association’, founded in 1884, without any funds, office bearers. In 1891, The Indian
factory Act was passed Some other Trade unions are Ahmedabad Weavers (1895), Jute
Mills, Calcutta (1896), Bombay Mill workers (1897) Union. Question No. 2 What are the
Rights and the Liabilities of a Registered Trade Union? Ans- Rights and Liabilities of
Registered Trade Unions: 1.
Objects on which General Funds may be spent: The general funds of a registered trade
union shall not be spent on any other objects than the payment of salaries, allowances
and expenses to the office bearers of the trade unions; expenses for the administration
of the trade union; the presentation or defiance of any legal proceeding to which the
trade union of any member thereof is a party; the conduct of trade disputes and
compensation of members for loss arising out of trade disputes; provision of education,
social or religious benefits for members; upkeep of a periodical published. 2.
Constitution of a Separate Fund for Political Purposes: A registered trade union may
constitute a separate fund, from contributions separately levied for or made to that
fund, from which payments may be made for the promotion of the civic and political
interests of its members, in furtherance of any of the objects such as the payment of any
expenses incurred, either directly or indirectly; the holding of any meeting or the
distribution of any literature/documents in support of any such candidate; the
registration of electors of the selection of a candidate for any legislative body
constituted under or for any local authority; the registration of electors or the selection
of a candidate for any legislative body constituted under/or for any local authority;
holding of political meetings of any kind. 3.
Immunity from Civil Suit in Certain Cases: (i) No suit or other legal proceeding shall be
maintainable in any civil court against any registered trade union or any office bearer or
member thereof in respect of any act done in contemplation or furtherance of a trade
dispute to which a member of the trade union is a party on the ground only that such
act induces some other person to break a contract of employment, or that is in
interference with the trade, business or employment of some other person or with the
right of some other person to dispose of his capital or of his labour as he wills.
A registered trade union shall not be liable in any suit or other legal proceeding in any
civil court in respect of any fortuitous act done in contemplation or furtherance of a
trade dispute by an agent of the trade union, if it is proved that such person acted
without the knowledge of, or contrary to express instructions given by the executive of
the trade unions. 5.
Right of Minors to Membership of Trade Unions: Any person who has attained the age
of 18 years may be a member of a registered trade union subject to any rules of the
trade union to the contrary, and may subject as aforesaid, enjoy all the rights of a
member and execute all instruments and give all acquaintances necessary to be
executed or given under the rules. 8.
In recent years organizational diagnosis has evolved from a technique used as part of
the organizational development process to a major technique in its own right. Effective
diagnosis should be an organic process in that as you start to look at an organization
and its structures and what it does and does not do, change starts, as change progress
so does the ‘now’ performance and as such the diagnosis process also needs to re-start.
The BIR methodology looks at taking a ‘snapshot’ in time in a way which is quick and
relatively unobtrusive. This allows decisions to me made, plans developed and actions
implemented rapidly… Then using the benchmarking facility another snapshot of the
organzation can be made and new plans developed. A bit like the old story of “how do
you eat an elephant? … one bite at a time. Developing an organization is no different.
With each iteration of a diagnostic process so new changes are identified and
prioritized. This not only keeps the development process alive – it makes it “the way we
do business here”. Remember the basics All too often in organizational diagnostics and
development we focus on the ‘new’ and ‘interesting’ aspects of what we do.
It is however vital that we periodically bring ourselves back to the basics… The purpose
of the organization is essentially a vehicle for producing profits for its owners. Or
delivering valued services to its clients in not for profits. To meet the goals and get the
best return on investment (ROI), the owners of a company employ managers who are
responsible for setting performance objectives and reaching then through the
appropriate use of a number of resources such as people, equipment, machinery etc.
The Diagnostic Cycle The purpose of a diagnosis is to identify problems facing the
organization and to determine their causes so that management can plan solutions. An
organizational diagnosis process is a powerful consciousness raising activity in its own
right, its main usefulness lies in the action that it induces. The major steps of a
diagnostic cycle include Orientation Goal setting Data gathering Analysis/ Interpretation
Feedback Action Planning Implementation Monitoring/ Measure Evaluation Forms of
Diagnostic The focus of organizational diagnostics will be different in a range of
situations, for example diagnosis for development or improvement will be different from
diagnosis for remedial or problem solving, although the methodologies may be similar.
While the diagnostic tools may well be similar, the application and outputs can be very
different. History of Organizational Development and the lead to Organizational
Diagnostics Kurt Lewin is said to have played a key role in the early development of
organization development as we understand it today.
As early as the 1940s, Lewin experimented with a change process which was
collaborative in nature and involved himself as consultant and a client group. The
process was based on a three-step approach of planning, taking action, and measuring
results. This was the beginning of what has become known as action research. This is a
fundamental part of Organizational development.
Later Lewin participated in the beginnings of laboratory training, or T-groups when after
his death in 1947, his associates in the field continued to develop survey-research
methods at the University of Michigan. These procedures became important parts of OD
as developments in this field continued at the National Training Laboratories (US) and in
growing numbers of universities and private consulting firms across the world.
The failure of off-site laboratory training to live up to its early promise was one of the
important forces stimulating the development of OD. Laboratory training is learning
from a person’s “here and now” (Gestalt) experience as a member of an ongoing
training group (T Group). Such groups usually meet without a specific agenda.
Their purpose is for the members to learn about themselves from their spontaneous
“here and now” responses to an ambiguous hypothetical situation. Problems of
leadership, structure, status, communication, and self-serving behavior typically arise in
such a group. The members have an opportunity to learn something about themselves
and to practice such skills as listening, observing others, and functioning as effective
group members. Initially the approach was practiced in stranger groups, or groups
composed of individuals from different organizations, situations, and backgrounds.
Over time a major difficulty developed, however, in transferring knowledge gained from
these stranger labs to the actual situation back home. This required a transfer between
two different organizational cultures, the relatively safe and protected environment of
the T-group (or training group) and the give-and-take of the organizational
environment with its traditional values.
This led the early pioneers in this type of learning to begin to apply it to family groups,
that is groups located within an organization. From this shift in the locale of the training
site and the realization that culture was an important factor in influencing group
members (along with some other developments in the behavioral sciences) emerged the
concept of organization development. Question No.
4 What information is required for effective human resources planning? Ans- Effective
Human Resource Planning Checklist Human resource planning needs careful attention.
When it’s done well, HR planning is a valuable process which can ensure that current
employees are able to attend to important tasks and become integrated within your
company culture. Properly managed human resource planning checklist goes beyond
the now and forecasts future labour demands within an organisation.
These processes, plans and systems assist businesses to sift through the ‘maybes’ and
learn to anticipate workforce variations instead of living in a constant state of surprise,
or making up the HR strategy as you go! Human resource planning comprises of four
comprehensive steps When creating a human resources plan, these are the main
considerations for any HR professional. The 4 steps which are integral in any human
resource planning are all important but one of them is vital.
That point is forecasting demand. This means that businesses need not only a clear
picture of their company but a good understanding of several other factors before they
can put their plan into action. STEP 1: Analyse company objectives and HR needs
Strategic aims within an organisation must be aligned to human resources practices in
order to ensure that a human resources plan is as effective as it can possibly be.
Questions to ask include what growth or decline is expected? How might this impact the
workforce? What are predicted sales for the forthcoming year? Goals need to be shared;
CEOs should be on the same page as HR professionals so that the focus on human
resources is fully embraced by all of the people involved in the planning. The human
resources plan should cover every part of a businesses from sales to expansion, from
recruitment to training.
Starbucks also put a lot of energy into employees’ well-being and as a result, the
company have an extremely low turnover in staff. Their somewhat unusual practices are
working extraordinarily well and have been for many years. You can begin by looking at
the number of people currently employed, taking into account their skills and potential
for future development, you should be able to determine which positions will need to
be filled in future.
Creating a profile for your ‘ideal employee’ which covers the gamut of openings within
your business will also ensure your staff turnover is lowered. Digitising employee
onboarding with onboarding software can be a powerful way to not only cut the costs
of recruitment, retention and management, but can also help your employees to feel
more empowered and engaged.
Also consider which jobs will be created or phased out, how can the new positions best
be filled? A performance evaluation strategy can help here as you review your
employees’ performances. Once your plan is in places you can plan the best options for
recruiting the best people for future gaps in the workforce. STEP 3: Predict need This is
the practice of estimation.
Utilise data you already have access to including predicted sales and slumps. STEP 4:
Planning training and development The previous steps will show you where, if at all,
there are gaps. Will there be skills shortages within your workforce? Do you need to
implement training for certain individuals now to ensure that you have the right
workforce in place at the right time? Upcoming retirements for example can necessitate
further training for individuals on lower rungs.
Some changes can’t be predicted; long-term illness for example and employees
changing careers or the shifting needs of their families can all impact your team but
there’s no effective way to predict these changes. You can however forecast some
variables and these should be carried out with care. Ensure that you keep records of the
skills your workforce currently have and update them as the staff receive further training
and development.
EMPLOYEE RELATIONS Question No. 5 Discuss the evolution of Industrial Relations. Ans-
Evolution of industrial Relations in INDIA IR is dynamic in nature. The nature of IR can be
seen as an outcome of complex set of transactions among the major players such as the
employers, the employees, the trade union, and the state in a given socio-economic
context. In a sense, change in the nature of IR has become sine quo non with change in
the socio-economic context of a country.
Keeping this fact in view, IR in India is presented under the following two sections: 1. IR
during Pre- Independence 2. IR during Post-Independence 1. IR During Pre-
Independence: The structure of the colonial economy, the labour policies of colonial
government, the ideological composition of the political leadership, the dynamics of
political struggle for independence, all these shaped the colonial model of industrial
relations in pre-independent India”.
Then even union movement was an important part of the independence movement.
However, the colonial dynamics of the union movement along with the aggressiveness
of alien capital, the ambivalence of the native capital and the experience of the outside
political leadership frustrated the process of building up of industrial relations
institutions.
Other factors like the ideology of Gandhian class harmony, late entry of leftists and the
bourgeois character of congress also weakened the class approach to the Indian society
and industrial conflict”. Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive regulator only Because, it could
provide, that too only after due pressure, the sum of protective and regulative legal
framework for industrial relations Trade Union Act 1926 (TL A) Trade Disputes Act 1929
(TDA).
It was the economic emergence of the Second World War that altered the colonial
government"s attitude on industrial relations. The state intervention began in the form
of introduction of several war time measures, viz. the Defence of India Rules (Rule 81-
A), National Service (Technical Personnel) Ordinance, and the Essential Service
(Maintenance) Ordinance As such in a marked contrast to its earlier stance, the colonial
government imposed extensive and pervasive controls on industrial relations by the
closing years of its era.
Statutory regulation of industrial relations was on plank of its labour policy. The joint
consultative institutions were established primarily to arrive at uniform and agreeable
labour policy. The salient features of the colonial model of IR can be summarized as
close association between political and trade union movement, dominance of
„outsiders" in the union movement, state intervention and federal and tripartite
consultations.
The eve of Independence witnessed several instances that served as threshold plank for
IR during post-Independence era. The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial Employment (Standing Orders)
Act 1946, Bombay Industrial Relations Act, 1946, and Industrial Disputes Act, 1947 and
split in AITUC and formation of INTUC. 2.
In the process of consultation and confrontation, gradually the structure of the industrial
relations system (IRS) evolved. State intervention in the IRS was a part of the
interventionist approach to the management of industrial economy. Several
considerations like unequal distribution of power in the labour market, neutrality of the
state, incompatibility of free collective bargaining institution with economic planning
etc. provided moral justification for retaining state intervention in the IRS.
State intervention in the IRS is logical also when the state holds large stakes in the
industrial sector of the economy. However state intervention does not mean
suppression of trade unions and collective bargaining institution. In fact, state
intervention and collective bargaining were considered as complementary to each other.
Gradually, various tripartite and bipartite institutions were introduced to supplement the
state intervention in the IRS. The tripartite process was considered as an important
instrument of involving participation of pressure groups in the state managed system.
Non formal ways were evolved to do what the formal system did not legislate, for one
reason or other.
The political and economic forces in the mid-1960s aggravated industrial conflict and
rendered non-formal system ineffective. In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966. Now the focus of restructuring
shifted from political to intellectual. However, yet another opportunity was lost when
there was an impasse on the NCL recommendations in 1972.
Government passed the Trade unions and the Industrial Disputes (Amendment) Bill,
1988. But, it also proved yet another legislative disaster. The bill was severely criticised
by the left parties. It was even viewed by some as a deliberate attempt to destroy
“autonomous; organised or militant trade union movement”.
Any more specific definition must, of necessity, assume and emphasise a particular view
of the nature and purpose of industrial relations. Consequently, there are as many
definitions as there are writers on industrial relations. For example, the two most
frequently used terms of industrial Climate for Industrial Relations, and 'employee
relations' are, in most practical senses, interchangeable; yet they have very different
connotations.
The former, more traditional, term reflects the original historical base of unionized
manual workers within the manufacturing sector of the economy whilst the latter has
come into greater use with the development of less unionised white collar employment
and the service and commercial sectors of the economy. (The term 'industrial relations'
is used because it is the more commonly known and used term').
The terms may be used in a very restrictive sense to include only the formal collective
relationship between management and employees (through the medium of trade
unions) or in an all-inclusive sense to encompass all relationships associated with
employment (those between individuals at the informal level as well as those of a formal
collective or organisational nature).
Clearly, the borderline between formal and informal or individual and collective
relationships within organisations cannot provide a natural boundary for the subject
matter of industrial relations.
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