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Directorate of Distance Education

MBA Paper 4.33

KARAIKUDI – 630 003 Tamilnadu

Dear Learner, Greeting from Alagappa University We extend a very warm welcome to you as a Student of Distance Education of Alagappa University. We appreciate your interest in enrolling for MBA Programme. The Programme content is designed to broaden the business acumen, administrative capacity and sharpen the analytical skill of the student. You are instructed to go through the course materials carefully and thoroughly to have better understanding of the subject. You are advised to attend the Personal Contact Programmes to have better clarity on the subject. At the end of the each unit, the review questions are given to enable you to prepare for Examinations. The Model Question Paper is given at the end of the course material for reference and practice. We wish you all the best in your endeavour for successful completion of the programme. Director Directorate of Distance Education Alagappa University Karaikudi, Tamilnadu.


SYLLABUS UNIT 1 Industrial Relations: Concept – Definition – Significance – Objectives – Scope – Approaches – Principles of good industrial relations – Role of State, Employers and the Unions in industrial relation. Trade Unionism and Industrial Relations: Labour movement – Concepts – Trade union movement – Development of trade unionism in Indian – Functions and problems of trade unions. International Labour Movement – International Confederation of Free Trade Unions (ICFTU) – World Federation of Trade Unions (WFTC) – International Labour Organisations (ILO) – Origin, history, objectives and functions. UNIT 3 Industrial Disputes: Meaning – Causes – Forms – Industrial relations machinery – Joint consultation – Works committee – Conciliations – Court of Enquiry – Voluntary arbitration – Adjudication. Employee Discipline: Definition – Causes of indiscipline – Code of discipline – Disciplinary procedure – Code of conduct. Grievance Handling: Meaning of grievances – Causes of grievances – Guidelines for grievance handling – Grievances redressal procedures. UNIT 4 Worker‟s Participation in Management: Meaning – Significance – Forms – Situations in India. Collective Bargaining: Meaning – Significance – Principles – Process – Training methods – Evaluation of training and retraining. Wage Administration and Industrial Relations – Wage policy – Objectives – Wage regulation machinery – Wage Board: Growth and development – Composition and functions – Evaluation of wage bonds.



Employee Communication: Meaning - Significance - Types – Barriers – Methods of overcoming barriers – Principal of effective communication -

Bhagoliwal TN. Tata Mc Graw Hill. Mamoria and Mamoria. SM. Arun Monappa. Michael V P. Course Material prepared by Dr. Chockalingam Professor and Head Debt. Annamalainagar. UNIT 6 Employee health. 3. 4. safety and security: Meaning – Significance – Programmes – Employee Counseling: Meaning – Significance – Types and Process – Conflict management: Meaning – Types of conflict episode – management of conflict – Quality circle: Meaning – Objectives – Techniques. . Industrial Relations. personal Management and Industrial Relations. Agra Publ. HRM and Human Relations. Dynamics of Industrial Relations in India. REFERNCES 1. Of Commerce (DDE) Annamalai University. Himalaya. Himalaya.Employee Education and Training – Concept – features – Aims and objects – Contents – Teaching techniques – Training Schemes. 2.

Quality Circles . Employee Discipline UNIT – IV 7. Collective Bargaining 9. Labour And The Constitution UNIT – II 3. Trade Unionism UNIT – III 4. Worker‟s Education and Training UNIT – VI 12. Conflict Management 16. Employee Counseling 15. Grievances Handling 6. Workers‟ Participation in Management 8. Industrial Relations – Introduction 2. Industrial Disputes 5. Employee Communication 11. Wage Administration and Industrial Relations UNIT – V 10.CONTENTS UNIT – I 1. Employee Safety Programme 14. Industrial Health and Social Security 13.


2. Industrial Relations – Introduction Labour and The Constitutions .UNIT – I 1.

labour today is no more an unorganized mass of ignorant works ready to obey without resentment or protest the arbitrary and discretionary dictates of management. local markets and small number of persons employed. direct and personal. and impersonal industrial relations. The pre-industrial revolution period was characterized by a simple process of manufacture. This new set-up rendered the old philosophy of industrial relation irrelevant and gave rise to complex. there emerged a new class of professional managers causing divorce between ownership and management. Under such a set-up industrial relations were simple. Almost all the industrialized countries of he world fact the problem of establishing and maintaining good management worker relationships in their industries. depending upon its economic.Lesson 1 Industrial Relations – Introduction Industrial relations constitute one of the most delicate and complex problems of the modern industrial society. But maintaining smooth industrial relation is not an easy task. This phenomenon of a new complex industrial set-up is directly attributable to the emergence of „Industrial Revolution”. Any grievance or misunderstanding on the part of either party could be promptly removed. and relations between the employer and the employer became entranged and gradually antagonistic. small scale investment. . Hence. Each country has sought to find our solution. The management has to deal with employees today nto as individuals but also as members of organized social groups who are very much conscious about their rights and have substantial bargaining strength. the objective of evolving and maintaining sound industrial relations is not only to find our ways and means to solve conflicts to resolve differences but also to secure the cooperation among the employees in the conduct of industry. social and political environment. Due to personal and direct relationship between the employer and the employee it was easier to secure cooperation of the latter. Also. indirect. Similarly. All this led to close proximity between the manager and the managed. Industry today is neither viewed as a venture of employers alone nor profit if considered as its sole objective. This situation underwent a marked change with the advent of industrial revolution – size of the business increased needing investment of enormous financial and human resources. there was no interference by the State in the economic activities of the people. It is considered to be a venture based on purposeful cooperation between management and labour in the process of production and maximum social good is regarded as its ultimate end and both management and employees contribute in their own way towards its success.

psychological. The term „industrial relations‟ has been variously defined. J.T. extent and stage of development of trade unions and employers‟ organizations and the type of social institutions. . Such a relationship is therefore complex and multidimensional resting on economic. Industrial relations. what difficulties arise between them. customers and public who come into its contact. ethical. There are mainly two set of factors that determine the state of industrial relations – whether good or poor in any country. In indusial relations. works and union and between workers and workers.. are regulated. It also includes all sorts of relationships at both formal and informal levels in the organization. thus. socialist technology. described as „institutional factors‟ include type of labour legislation. the sources of demand and supply in the labour market. the nature and composition of labour force etc. occupational. include both „industrial relations‟ and „collective relations‟ as well as the role of the state in regulating these relations. social. Dunlop defines industrial relations as “the complex interrelations among managers. it refers to all types of relationships between employer and employees. therefore. Distinction between human relations and industrial relations The term „human relations‟ lays stress upon the processes of inter-personal relationships among individuals as well as the behavior of individuals as members of groups. The term „industrial relations‟ is used widely in industrial organizations and refers to the relations between the employers and workers in an organization. In the narrow sense. state. The first set of factors. According to Dale Yoder “industrial relations is the process of management dealing with one or more unions with a view to negotiate and subsequently administer collective bargaining agreement or labour contract”. trade union and management. at any specified time. industrial relations cover all such relationships that a business enterprise maintains with various sections of the society such as workers. one seeks to study how people get on together at their work. Meaning In the broad sense. political and legal levels. The other set of factors. how their relations including wages and working conditions etc. industrial conflict still arises and therefore establishment and maintenance of satisfactory industrial relations forms an important plank in the personnel policies of modern organization. policy of state relating to labour and industry.However. described as „economic factors‟ include the nature of economic organization capitalist. workers and agencies of the governments”.

4. Significance of Industrial Relations Maintenance of harmonious industrials relations is on vital importance for the survival and growth of the industrials enterprise. However.e. 3. eliminating all types of wastage. and also a congenial environment resulting in less industrial unrest. both human and materials. The problems of industrial relations are therefore. essentially problems that may be solved effectively only by developing in conflicting social groups of an industrial undertaking. It improves morale of he work force: Good industrial relations. result in higher productivity and hence income. 2.. The significance of industrial relations can be summarized as below: 1. in a peaceful atmosphere and fostering industrial pursuits for mutual benefits. reduced turnover and other tangible benefits to the organization. built-in mutual cooperation and common agreed approach motivate one to contribute one‟s best. It ensures optimum use of scare resources: Good and harmonious industrial relations create a sense of belongingness and group-cohesiveness among workers. mutual cooperation and mutual agreement amongst the parties i. . grievances and disputes. This will ensure optimum use of resources.Thus. while problem of human relations are personal in character and are related to the behavior of individuals where moral and social element predominate. This helps in establishing industrial democracy in the organization which motivates them to contribute their best to the growth and prosperity of the organization. It establishes industrial democracy: Industrial relations means settling employees problems through collective bargaining. management and employees‟ unions. the term „industrial relations‟ is comprehensive covering human relations and the relations between the employers and workers in an organization as well as matters regulated by law or by specific collective agreement arrived at between trade unions and the management. Good industrial relations result in increased efficiency and hence prosperity. This will result in economic development of the economy. the concept of „industrial relations‟ has undergone a considerable change since the objective of evolving sound and healthy industrial relations today is not only to find out ways and means to solve conflicts or resolve difference but also t secure unreserved cooperation and goodwill to divert their interest and energies toward constructive channel. give more job satisfaction and help improve the morale of the workers. dependence and respect and at the same time encouraging them to come closer to each other for removing misunderstanding if any. a sense of mutual confidence. It contributes to economic growth and development: Good industrial relations lead to increased efficiency and hence higher productivity and income.

6.5. until it is faced with strikes and more serious unrest. 7. 2. Indiscipline. It prompts enactment of sound labour legislation: Industrial relations necessitate passing of certain labour laws to protect and promote the welfare of labour and safeguard interests of all the parties against unfair means or practices. Inappropriate introduction of automation without providing the right climate. 4. However. . It discourages unfair practices on the part of both management and unions: Industrial relations involve setting up a machinery to solve problems confronted by management and employees through mutual agreement to which both these parties are bound. It helps the work force to adjust themselves to change easily and quickly Causes of Poor Industrial Relations Perhaps the main cause or source of poor industrial relations resulting in inefficiency and labour unrest is mental laziness on the part of both management and labour. Contempt on the part of the employers towards the workers is another major cause. 6. Management is not sufficiently concerned to ascertain the causes of inefficiency and unrest following the laissez-faire policy. Lack of human relations skill on the part of supervisors and other managers. 7. Mental inertia on the part of management and labour. Unhealthy working conditions. It facilitates change: Good industrial relations help in improvement of cooperation. team work. Inadequate fixation of wage or wage structure. This results in banning of the unfair practices being used by employers or trade unions. Even with regard to methods of work. 8. An intolerant attitude of contempt of contempt towards the workers on the part of management. management does not bother to devise the best method but leaves it mainly to the subordinates to work it out for themselves. innovations and other scientific and technological advances. the following are briefly the causes of poor industrial relations: 1. 3. Desire on the part of the workers for higher bonus or DA and the corresponding desire of the employers to give as little as possible. performance and productivity and hence in taking full advantages of modern inventions. 5.

social and economic changes. Retrenchment. 2. To ensure better working conditions. 6. To develop employees to adapt themselves for technological. and general indiscipline having their effect on the employees‟ attitudes. 3. To bring better understanding and cooperation between employers and workers. such as rising prices. 13. 10. To make positive contributions for the economic development of the country. dismissals and lock-outs on the part of management and strikes on the part of the workers. Unfair labour practices. living conditions and reasonable wages. To work in the direction of establishing and maintaining industrial democracy. To ensure workers‟ participation in decision-making. 11. and 15. strikes by others. 10. General economic and political environment. To safeguard the interest of workers and the management. To ensure constructive contribution of trade unions. 5. Scope The scope of industrial relations includes all aspects of relationships such as bringing cordial and healthy labour management relations. To avoid industrial conflicts and to maintain harmonious relations.9. like victimization and undue dismissal. 9. Inter-union rivalries. 11. Objectives of Industrial Relations 1. Inadequate welfare facilities. 8. Unduly heavy workloads. creating industrial peace and developing industrial democracy. 14. Dispute on sharing the gains of productivity. 7. 4. . To increase the morale and discipline of workers. 12. To establish a proper channel of communication between workers and management.

The industrial democracy could be achieved –   by allowing workers to take part in management. industrial conflict means the conflicting interests. aspirations. by providing other social security measures. motives and perceptions of different groups of individuals. The perceptions of situations and issues differ because the same position may appear entirely . and by recognition of human rights. by maintaining healthy trade unions. One observer has stated. These perceptions may be the perceptions of persons. problems of industrial relations have their origin in the perceptions of the management. goals. industrial conflict is a war of different ideologies – perhaps a class-war. Labour Courts etc. by providing good working conditions. Approaches to Industrial Relations Industrial conflicts are the results of several socio-economic. by fixing reasonable wages. unions and rank and file workers.The cordial and healthy labour management relations could be brought in      by safeguarding the interest of the workers. Various lines of thoughts have been expressed and approaches used to explain his complex phenomenon. To a psychologist. “An economist tries to interpret industrial conflict in terms of impersonal markets forces and laws of supply demand. by collective bargaining. psychological and political factors. by evolving various legal measure and setting up various machineries such as Works Committee. operating within and reacting to a given socio-economic and political environment”. Boards of Conciliation. To a politician. of situations or of issues involved in the conflict. The industrial peace could be attained –   by setting industrial disputes through mutual understanding and agreement. Psychological approach According to psychologists.

The organizational behavior of inter-groups of management and workers is of crucial importance in the pattern of industrial relations. In fact major problems in industrial relations arise out of a tension which is created because of the employer‟s pressures and workers‟ reactions. etc. psychiatrists. throat-cuts. tec. Industry is. Assistance is also taken from economists. anthropologists. workers‟ attitudes. associations and trade unions. They want freedom of speech. When employers treat them as inanimate objects. As industries develop. Through the main function of an industry is economic. rationality. protests and resistance to these pressures through protective mechanisms in the form of workers‟ organization. thus inseparable from the society in which it functions. clashes and may arise between the two parties. its social consequences are also important such as urbanization. hence. These do influence the development of industrial relations. structural changes. Other factors also influence perception and may bring about clashes.different to different parties. stress and strain. of thought of expression. status-symbols. Sociological approach Industry is a social world in miniature. Through tension is more direct in work place. perception of change in industry. which provides general new relationships. situations and persons between the management groups and labour groups. The group-dynamics between the two conflicting groups in industrial relations tend to shape the behavioural pattern. pedagogists. social mobility. disintegration of family structure. The perceptions of unions and of the management of the same issues may be widely different and. the management must realize that efforts are made to set right the situation. institutions and behavioural pattern and new techniques of handling human resources. encroach on their expectations. psychologists. of movement. etc. Services of specialists in Behavioural Sciences (namely. conflicts and tensions arise. customs. in turn. The reasons of strained industrial relations between the employers and the employees can be understood by studying differences in the perception of issues. industrial engineers. Human relations approach Human resources are made up of living human beings. In resolving . acceptance or resistance to change. Therefore. The management goals. human relations expert and personnel managers) are used to deal with such related problems. are all. decided by broad social factors like the culture of the institutions. tolerance etc. housing and transport problem in industrial areas. a new industrial-cum-social pattern emerges. gradually it extends to the whole industry and sometimes affects the entire economy of the country.

The workers are likely to attain greater job satisfaction.conflicts. Introducing a suitable system of employees education and training. independently and with responsibility. Conflicts cannot be resolved unless the management must learn and know what the basic what the basic needs of men are and how they can be motivated to work effectively. understanding of human behavior – both individual and groups – is a prerequisite for the employers. would develop greater insight and effectiveness in their work. living conditions and reasonable wages.        Role of state in industrial relations In recent years the State has played an important role in regulating industrial relations but the extent of its involvement in the process is determined by the level of social and economic development while the mode of intervention gets patterned in conformity with the political system obtaining in the country and the social and cultural traditions of its . To develop employees to adapt themselves for technological. To ensure better working conditions. develop greater involvement in their work and achieve a measure of identification of their objectives with the objectives of the organization. Desirability of associations of workers and managements with the Government while formulating and implementing policies relating to general economic and social measures affecting industrial relations. on their part. Principle of Good Industrial Relations    The willingness and ability of management and trade unions to deal with the problems freely. Developing proper communication system between management and employees. social and economic changes. if they understand and apply the techniques of human relations approaches to industrial relations. the union leaders and the government – more so for the management. Fair redressal of employee grievances by the management Providing satisfactory working conditions and payment of fair wage. It has now been increasingly recognized that much can be gained by the managers and the worker. Recognition of collective bargaining. To make positive contributions for the economic development of the country. the manager.

the role played by the State is an important feature in the field of industrial relations and State intervention in this area has assumed a more direct form. A participative and permissive altitude on the part of management tends to give an employee a feeling that he is an important member of the organization – a feeling that encourages a spirit of cooperativeness and dedication to work. They must make the employees feel that they are genuinely interested in their personal development. Managements must delegate authority to their employees commensurate with responsibility.    . in a developing economy like ours. To this end. In India. a free market economy may leave the parties free to settle their relations through strikes and lockouts but in other systems varying degrees of State participation is required for building up sound industrial relations. They must devise. The degree of State intervention is also determined by the stage of economic develop. The State has enacted procedural as well as substantive laws to regulate industrial relations in the country.people.   Management must make a genuine efforts to provide congenial work environment. develop and implement a proper incentive plan for personnel at all levels in the organization. work-stoppages to settle claims have more serious consequences than in a developed economy and similarly. For example. adequate opportunities for appropriate programmes of 18training and development should be provided. They must evolve well conceived and scientific wage and salary plan so that the employees may receive just compensation for their efforts. There must be a well-planned communication system in the organization to pass on information and to get feed back from the employees. For a positive improvement in their relations with employees and maintaining sound human relations in the organization. in the decision-making process as well. Employees should be given „say‟ in the affairs of the organization generally and wherever possible. Role of management in industrial relations The management have a significant role to play in maintaining smooth industrial relations. the management must treat employees with dignity and respect.

goodwill and understanding on the part of both management and employees in the exercise of their rights and performance of their duties should prevail for maintaining good industrial relations Role of trade unions in maintaining industrial relations The trade unions have a crucial role to play in maintaining smooth industrial relations. .these are some of the major issues of industrial relations system. The labour management synergy Planning for healthy Industrial Relations is one of the most delicate and complex problems of present day industrial society. It is true that the unions have to protect and safeguard the interests of the workers through collective bargaining. establish and utilize appropriate machineries for speedy redressal of employees grievances. (b) Inter-societal obligations. Trade unions must understand that both management and workers depend on each other and any sort of problem on either side will do harm to both sides. trade unions and workers inter se) and. How people get on together at their work. Managements must pay personal attention to the problems of their employees irrespective of the fact whether they arise out of job environment or they are of personal nature. particularly when the institutions involved are public utility organizations. what difficulties arise between them. including wages and working conditions. trade unions and workers. even for trivial reasons. But at the same time they have equal responsibility to see that the organization do not suffer on account of their direct actions such as strikes. how their relations. confidence. Manageemnts must provide an enlightened leadership to the people in the organization. are regulated and what organizations are set up for the protection of different interests. They must evolve. Industrial Relations System‟s responsibility implies: (a) Inter-vertex Relationship (amongst management. They must be able to understand and appreciate the problems of managements and must adopt a policy of „give and take‟ while bargaining with the managements. representing diverse „points of flexion‟ and „bases of industrial edifice‟. The Triangle of Industrial Relations System represents multi-pronged relationship between management.   An environment of mutual respect. Besides public are also affected.

influenced by external and internal environment and focusing on: . where he sees the purpose of his work and feels important in achieving it. identification of the functions. Trade Union relationship vis-à-vis workers implied that it should appreciate workers‟ aspirations and expectations that trade union is essentially a protective. meant primarily to manage and handle their economic. There is often a tendency in trade unionism to promote „mass movement‟ instead of an ‟organisation‟.Management relationship vis-à-vis trade unions is based on increasing realization that trade unionism has to come to stay as a necessary concomitant of the contemporary capitalist them. power and responsibility in the societal context. Management relationship vis-à-vis workers revolves round the themes like attitude towards work. where worker can take roots and where he belongs to. in turn. urge for greater degree of control over work situation. and. creates an attitude of convalescence and the cause of unconsciousness. which has to undertake responsibilities in a dynamic situation. search for an environment. and its membership is often based on „calamity features‟ rather than on „positive factors‟. In a changing situation like India. The art and science of management is highly sophisticated with theories. the management task in the long-run is directed towards harmonizing this conflict inside and outside the enterprise. that trade unions movement is the expression of the workers‟ collective determination to recover emotional security lost through Industrial revolution. Trade Unions as organizations generally viewed themselves as an „end‟ rather than as a „means‟ centering on „cause‟ and not on „man‟. Often aspirations of workers are at variance with those of leaders in the trade union movement. concepts and models of management. ideological postures are of limited relevance in the realm of trade unionism. which. social and cultural problems. Management approach towards itself presupposes management as a social task. Since life is based on conflict. Trade union approach towards itself is based on the premise that trade unionism is a management system. industrial democracy. friendly society. and. Trade union relationship vis-à-vis management is conditioned by accepting the fact that management presents an indissoluble partnership amongst interest.



      

The primary purpose Organisation Adjustment and adaptation Attitudes Representation Economic responsibility Discipline

There is an imperative need of strengthening the democracy and freedom within the trade unions, encourage workers‟ participation in the process of decision-making and developing new perspectives in the personnel problems of the trade unionism. Management and trade unions both have to be aware of the changing value system, the needs of a „new breed‟ of employee, the ever-increasing generational gap in attitudes towards money, emphasis on quality of life, public‟s lower frustration tolerance, changing attitudes towards work and leisure, education‟s impact on peoples‟ self-image, rejection of authoritarianism and dogmatism, greater stress on pluralism and individualism, and search of identity, self-esteem and self-realization. The ideology based on rationality; moral absolutes leading to situational ethics; and, economic efficiency resulting in social justice; are the new bases and postulates for shaping the future industrial relations system in the Indian context.

Planning Industrial Relations: Tasks Ahead In future organization systems, employees would consider themselves to be partners in management and expect their talents to be utilized to the fullest. With increased selfesteem and self-image, young graduates will resist authority and would challenge prevailing management prerogatives. Tomorrow‟s management control centers, advanced OR models will aid future managers in the use of resources, they would need to balance humanistic values with the flow of advancing science and technology. According to Victor Fuchs, “In future, the large corporation is likely to be over-shadowed by the hospital, university, research institutes, government offices and professional organizations that are the hallmarks of a service economy‟. Following the concept of „corporate citizenship‟, the „responsible corporation‟ has to develop as a social institution, where people share success and failure, create ideas, interact and work for development and realization of the individual‟s potential as human being. Since Industrial Relations is a function of three variables – management, trade unions and workers, a workable approach towards planning for healthy labour-management relations can be developed by:    Defining the acceptable boundaries of employer/ employee action; Granting the freedom to act within these boundaries; and Monitoring the resulting developments.

For achieving the objectives of improved management – trade union the following line fo action is suggested:        A realistic attitude of managers towards employees and vice versa for humanizing industrial relations. Proper organization climate and extension of area of Industrial Relations, Institutionalism of industrial relations and effective forums for interaction between management and trade unions at plant, industry and national levels. A comprehensive system of rules and discipline, The maintenance of an efficient system of communication, An objective follow-up pattern for industrial relations system. Respect for public opinion and democratic values

An integrated industrial relations policy incorporating rational wage policy; trade union and democratic rights, sanctity of ballot, collective bargaining and tripartite negotiations.

Whatever, labour laws may lay down, it is the approach of the management and union which matters and unless both are enlightened, industrial harmony is not possible. In fact both managements and workers need a change in their philosophy and attitudes towards each other. In all fairness, both management and workers should not look upon themselves as two separate and distinct segments of an organization, but on the contrary, realize that both are partners in an enterprise working for the success of the organization for their mutual benefit and interest. It is becoming increasingly obvious that industrial peace amongst all participants in the industrial relations systems requires truth as foundation, justice as its rule, love as its driving force, and liberty as its atmosphere.

REVIEW QUESTIONS: 1. Bring out the significance of industrial relations. 2. Discuss different approaches to industrial relations. 3. What are the principles of good industrial relations? 4. Explain the role of the Government, Employer and the Trade Union in maintaining sooth industrial relations. 5. Suggest suitable strategies for maintaining cordial industrial relations.

354. 41. and it shall be the duty of the State to apply those principles in making laws from time to time. Labour is in the Concurrent List on which both the Centre as well as the States have the power to make laws. reserved for the consideration enumerated in the Concurrent List. To this. The Directive Principles. Article 254 has been enacted to clarify the position. old age. There shall be equality of opportunity to all citizens in matters relating to employment or appointment or appointment to any office under the State. there is one exception embodied under clause(II) of Art. make effective provision for securing the right to work. they are the sub-stratum of industrial jurisprudence. The Constitution amply provides for the upliftment of labour by guaranteeing certain fundamental rights to all. to education and to public assistance in cases of unemployment. as laid down in clause(I). 42 and 43 have a special relevance in the field of industrial legislation and adjudication.Lesson 2 Labour and the Constitution Constitutional Framework The Constitution of India has guaranteed some Fundamental Rights to the citizens and has also laid down certain Directive Principles of State Policy for the achievement of a social order based on Justice. where. sickness and disablement. Article 14 lays down that the State shall not deny to any person equality before the law or the equal protection of laws. Article 41 lays down that the State shall. People have the right to form associations or unions. Article 39 accentuates the basic philosophy of idealistic socialism which is enshrined in the Preamble of the Constitution and provides a motivation force to the Directive Principles by laying down that the State shall direct its policy towards equal pay for both men and women. the legislation of the Union shall prevail. Liberty. are nevertheless fundamental in the governance of the country. . within the limits of its economic capacity and development. and in other cases of undeserved want. Traffic in human beings and forced labour and the employment of children in factories or mines or other hazardous work in prohibited. a law enacted by a State with respect to the matter enumerated in the Concurrent List. In fact. has received his assent. though not enforceable by any court. such law shall prevail in the State. reserved for the consideration of the President. Normally. Equality and Fraternity. Articles 39. and provisions of that law repugnant to the provision of an earlier law made by the Parliament or any existing law with respect to that matter have priority over the Central legislation. in case of any repugnancy between the Union and the State legislation.

early death of the bread-winner and in some other contingencies.    Article 42 enjoins the State government to make provision for securing just and humane conditions of work and for maternity relief. viz. 1961. leave with wages etc. 1948. the Employees‟ Family Pension Scheme and the Employees‟ Deposit-linked Insurance Scheme. The object of the Payment of Gratuity Act. 1952 and the Maternity Benefit Act. provides for health. is in charge of three important schemes.Social security is guaranteed in our Constitution under Arts. safety.  The Provident Fund Scheme aimed at providing substantial security and timely monetary assistance to industrial employees and their families. is a pioneering piece of legislation in the field of social insurance. mines. The Maternity Benefit Scheme is primarily designed to provide full wages and security of employment. 41 and 43.. The Employees‟ Provident Funds and Miscellaneous Provisions Act. 39. employers are required to pay gratuity at the rate of 15 days‟ wages for every completed year of service subject to a maximum of 20 months‟ wages. Under the Act. All employees who have rendered a minimum of years‟ continuous service in the above mentioned establishments are entitled to gratuity at the time of superannuation. A scheme of Family Pension-cum-Life Assurance was introduced with a view t providing ling-term recurring financial benefit to the families in the event of the members‟ premature death while in service.42 of the Constitution. ports. (5) funeral benefit. The Employees‟ Provident Fund Organization. disablement. This scheme has provided protection to employees and their dependants in case of old age. (4) dependants‟ benefit. . oil fields. All the benefits are provided in cash except the medial which is in kind. are also social security measures to help fulfill the objectives of Directive Principles of our Constitution. The Employees‟ State Insurance Act. The benefits provided to the employees under the scheme are: (1) sickness benefit and extended sickness benefit. (3) disablement benefit.. 1972 is to provide a scheme for the payment of gratuity to employees employed in factories. welfare. (2) maternity benefit. They enable a female employee to get maternity leave with full wages at least for 6 weeks before and 6 weeks after confinement. employment of young persons and women. resignation. death or if they leave their job due to accident. holidays. railways.. disablement. the Employees‟ Provident Funds Scheme. plantations. hours of work for adults and children. shops and establishments. retirement. 1948. Substantial steps have been taken to fulfill the object of Art. The administration of the scheme is entrusted to an autonomous corporation called the Employees‟ State Insurance Corporation. The Factories Act. and (6) medical benefit.

Labour welfare funds have been set up to provide welfare facilities to the workers employed in different mines such a coal. or otherwise. Different views have been expressed by different authorities about the exact meaning and scope of this concept. Article 43A makes it obligatory on the State to take steps by suitable legislation or otherwise to secure the participation of workers in the management of undertakings and industrial establishments. industrial. Fair wage is something above the minimum wage which may roughly be said to approximate to the need-based minimum wage. The Act provides for licensing of contractors and registration of establishments by the employers employing contract labour. According to Justice Holmes. To ensure this. These rates vary from State. condition of work ensuring a decent standard of life and full enjoyment of leisure and social and cultural opportunities. Living wage is the higher level of wage and of the industry to pay and naturally. Article 43 makes it obligatory for the State to secure by suitable legislation or economic organization or in any other manner to all workers. the country is committed morally and ethically to see that the governance of the country is carried on with a view to implementing these Directive Principles in course of time” (Chapter VI. In a democratic society. administration of justice is based on the Rule of Law. It is a mean between the living wage and the minimum wage. which. a piece of social legislation. iron ore and limestone. was enacted. It provides for the fixation of minimum rates of wages by the Central or State governments within a specified period for workers employed in certain scheduled employments. p. The Contract Labour (Regulation and Abolition) Act of 1970. Social Justice In industrial adjudication. The minimum wage in any event must be paid irrespective of the capacity of the industry to pay. area to area and from employments to employment. agricultural. provides for the abolition of contract labour wherever possible and to regulate the conditions of contract labour in establishments or employments where the abolition of contract labour system is not considered feasible for the time being.48). “in accepting the Directive Principles. it would include all amenities which a citizen living in a modern civilized society is entitled to. As observed by the National Commission on Labour in its report. According to the Supreme Court. it was a vague and indeterminate expression and that no definition could be laid down which would cover all situations. work. 1948. social justice is “an inarticulate major premise which is personal and individual to every court and every judge”. as conceived by modern jurists. is dynamic and includes within its imports social justice. a living wage. It has been given a place of pride in our Constitution. the Minimum Wages Act. mica. the concept of social justice has been given wide acceptance. The philosophy of social justice has .

In a welfare State it is necessary to apply the general principles of social and economics justice to remove the imbalances in the political. Review Questions 1. The concept of social justice is a very important variable in the function of industrial relations. . economic and social life of the people. The philosophy of social justice has now become an integral part of industrial jurisprudence. State the relevant legal enactments relating to labour. become an integral part of industrial jurisprudence. State the relevant provisions of Indian Constitution for labour welfare.

Trade Unionism .UNIT – II 3.

Thus the growth of modern industrial organizations involving the employment of a large number of workers / employees in new type of working conditions and environment makes them helpless in bargaining individually for their terms of employment. i. They have to be provided with new types of economic security – wages / salaries. Often they may have to learn to live together in newly developing industrial townships and cities and also to adopt themselves to new working conditions and new pattern of work-rules imposing discipline and setting pace of work to which they are unfamiliar. In most cases. who are not members of any union. the factory. When industrialization begins. organization members have to be generally recruited from the ranks of former agricultural labour and artisans who have to adapt themselves to the changed conditions of industrial employment. Since this definition does not cover all the extensions of trade union activities in modern times. Meaning of Trade Union. Their old habits and traditions do not suffice to guide them in their daily work-behaviour and in consequence they may be disorganized and frustrated. a trade union with some modification may be redefined as “a continuous association of wage-earners or salaried employees for maintaining the conditions of their working lives and ensuring them a better and healthier status in industry as well as in the society”. The term „Labour Movement‟ is generally applied to all the various types of long-term association of workers / employees that the formed in industrialized or industrializing . employees‟ associations or trade unions seem to have emerged as „protest movements‟ reaching against the working relationships and condition created by industrialization.e. the classic definition of the Webbs has been most popular. “The emergence of trade unionism lies in the Industrial Revolution which disrupted the older way of life and created a new society forged by the shop. As observed by Frank Tannenbaum. the mine and the industry.LESSON 3 Trade Unionism Trade unionism is a worldwide movement and the highly strategic position occupied by trade unions in modern industrial society has been widely recognized. According to them a trade union is “a continuous association of wage-earners for the purpose of maintaining or improving the condition of their working lives”. Of all the definitions of a trade union. benefits and services etc. The term „Organized Labour‟ is used to distinguish workers/ employees who are members of trade unions or employee association from those who are unorganized. Organized Labour and Labour Movement The term „Trade Union‟ has been defined in various ways because of wide differences in the use of this term in different countries.

there is a slight distinction between the two. These efforts should be taken as forming a part of the labour movement and not that of the trade union movement. . Its non-observance resulted in expulsion from the community. efforts were made mainly by the social reformers to improve the working and living conditions of labour. An agitation was organized by him a 19884 in Mumbai. According to G. Trade unions are the principal institutions in which the employees learn the lesson of selfreliance and solidarity. although the groundwork was laid during the last quarter of the 19th century. Difference between Labour Movement and Trade Union Movement There is lot of confusion on the use of the terms „labour movement‟ and „trade union movement‟. however originated in the first quarter of the present century. It seeks to develop amongst employees a spirit of combination.H. The credit of laying the foundation of the organized labour movement in India is at time accorded to Mr. Trade unions. as understood today. as early as in 1975. The labour movement thus conveys a higher degree of consciousness amongst workers than conveyed by mere trade union movement.M. In Mumbai. A trade union is thus an essential basis of labour movement.D. class-consciousness and solidarity of interest and generates a consciousness for self-respect and creates organizations for their self protection. a movement was started by reformers under the leadership of Sorabji Shapurju.economies. in some degree. Thus the labour movement in a country emerges from a common need to serve a common interest. “Labour movement implies. a community of outlook. labour movement is conceived as “all of the organized activity of wage-earners to better their own condition s either immediately or in the more or less distant future”. This distinction needs to be noticed all the more because till the workers organized themselves into trade unions. The panchayats prescribed the code of conduct which was rigidly observed by its members. The Trade Union Movement in India The trade union movement‟s origin in a sense can be traced back to very early date to the time when villages had panchayats and guilds for settling disputes between the masters and their members. N. However. The „labour movement‟ is „for the worker‟. Lokhande. code. safeguarding of their common interest and betterment of their economic and social conditions. The labour movement without trade unions cannot exist. Often the two are used interchangeably. They protested against the appealing conditions of the factory workers and appealed for introduction of adequate legislation to prevent them. a factory worker himself. According to Encyclopedia of Social Sciences. whereas the „trade union movement‟ is „by the workers‟. This resulted in certain amenities being extended to the mill workers which led to the organization of the Mumbai Milhands Association.

Many trade unions were formed throughout India. One of the important points of the constitution of Indian National Trade Union Congress is that every affiliated union has to agree to submit to arbitration every individual dispute in which settlement is not reached thorough negotiations. Hind Mazdoor Sangha (HMS) : The socialists in the Congress disapproved not only the Communist run AITUC but also the Congress-sponsored INTUC. The labour world in India is dominated mainly by four central organization of labour.O. Rising prices. in fact. At present. The prominent leaders of ATLA and HMSS were elected office-bearers of INTUC.N. This further indirectly strengthened the movement in India. Nehru and Sardar Patel. without a corresponding increase in wages. Following the Second World War. This was formed with the help of the Hindustan Mazdoor Sewak Sangh which consisted of those who believed in Gandhian methods and had left the AITUC in 1937 under of leadership of Mr. was the most representative organization of labour in the country entitled to represent Indian labour in I. led to a new awakening. To this was added the influence of the Russian Revolution. These unions are. The INTUC received the blessings of the top congress leaders at the Centre like Mr. Nehru took a prominent part in the organization of this Congress. These are: 1. despite the employers making huge profits. It followed the pattern of the trade union s in the United Kingdom. local and craft bases. and not AITUC. Thie4 speeded up the pace of the trade union movement. federations of affiliated union – units which function on regional. it is the second largest union of workers and is still controlled by Communists and fellow-travellers.L. The workers once again became restive. This lienated any prominent people who did not subscribe to the views and ideology of the communists. 3. the Indian National Trade Union Congress was organized by the Congress party on its labour front. the establishment of the ILO (International Labour Organisation) and the All-India Trade Union Congress. short-lived and soon it came under the domination of the Communists and Radicals. Indian National Trade Union Congress (INTUC): In May. All-India Trade Union Congress (AITUC): An important event in the history of trade union movement in India was the organization of the All-India Trade Union Congress in 1920. There were a number of strikes during 1919 to 1922. The effort toward unified action in the matter of labour was. the Government of India declared that INTUC. Mr. 2. Roy.Actually a real organized labour movement in India started at eh end of the First World War. however. there was a spiraling of prices. In 1948. particularly because it advocated compulsory arbitration as a method of resolving . M. There must be no strikes till other means of settlement are exhausted.

The employees may join the unions because of their feeling that this would enable them to communicate their views. United Trade Union Congress (UTUC): The dissidents from the Socialist Leaders‟ Congerence held at Kolkatta in December. discriminatory or contrary to their general interests. 4. Government and political parties. For sometime the activities of socialist leaders were coordinated by the Hind Mazdoor Panchayat. 1948 and a new federation by the Hind Mazdoor domination by employers. Individuals may join the unions in the hope of finding a job through their influence in the company management. Need for Trade Union  One of the main reasons of workers joining a trade union been their belief to get wages increased and maintained at a reasonable standard through collective action and their realization that individual bargaining was utterly useless for this purpose. illness.industrial disputes. feelings and frustrations to the management effectively. as an individual. ideas.        . Another reason of employees joining some union may be the broader realization on their part that unions fulfill the important need for adequate machinery for proper maintenance of labour-management relations. unemployment etc. Since the employee. Through collective strength. The UTUS is more radical than HMS but less revolutionary in its objectives and policies than AITUC. 1948 proceeded to establish yet another federation of trade unions in April-May 1949 under the name of United Trade Union Congress. Employees may join the unions because of their belief that it is an effective way to secure adequate protection form various types of hazards and income insecurity such as accident injury. feels specially weak. The employees may join the unions to ensure a just and fair dealing by management. they met in Kolkatta in December. Subsequently when they left the Congress. he prefers to join an organization that my afford him an opportunity to join others for the achievement of those objectives that he considers as socially desirable. illogical. they restrain the management from taking any such action which may be irrational.

4. To ensure a desirable standard to living by providing various types of social service – health. educational. and Functions relating to the society. To make the workers conscious of their rights and duties. To ensure healthy. cooperative. The raise the status of trade union members in the industrial organization and in the society at large. and adequate conditions of work. To exert pressure for enhancement of rewards associated with the work only after making a realistic assessment of its practical implications. To stress the significance of settling disputes through negotiation. housing. 7. To safeguard workers against all sorts of exploitation by the employers. and to foster labour-management cooperation.Functions of Trade Unions     Functions relating to members Functions relating to organization Functions relating to the union. recreational. 2. 8. 5. 10. Functions relating to trade union members 1. 3. by union leaders and by political parties. etc. To remove the dissatisfaction and redress the grievances and complaints of workers. 12. 9. To encourage worker‟s participation in the management of industrial organization and trade union. To guarantee a fair and square deal and social security measures. To impress upon works the need to exercise restraint in the use of rights and to enforce them after realistically ascertaining their practical implications. safe and conducive working conditions. 6. joint consultation and voluntary arbitration. To protect workers from the atrocities and unfair practices of the management. . 11. and by widening and consolidating the social security measures.

to share the profits equitably. Functions relating to trade unions organization 1. and by avoiding litigation. To preserve and strengthen trade union democracy. 2. and to keep away from various types of unfair labour practices. To improve the network of communication between trade union and its members. To help in the maintenance of discipline. To facilitate communication with the management. To create opportunities for worker‟s participation in management and to strengthen labour-management cooperation. 5. To promote cordial and amicable relations between the workers and management by settling disputes through negotiation. 3. 9. To improve financial position by fixing higher subscription. 3. by laying down the norms or production and ensuring their adequate observance. To impress upon the management the need to adopt reformative and not punitive. joint consultation and voluntary arbitration. To exert pressure on the employer to enforce legislative provision beneficial to the workers. 2. To train members to assume leadership position. To create favourable opinion of the management towards trade unions and improve their status in industrial organization. by realizing the union dues and by organizing special fund-raising campaigns. To formulate policies and plans consistent with those of the industrial organization and society at large. 7. approach towards workers‟ faults. . 10. To help in the removal of dissatisfaction and redressal of grievances and complaints. 8. To highlight industrial organization as a joint enterprise between workers and management and to promote identity of interests. 6. 4. 4.Functions relating to industrial organization 1. To increase production quantitatively and qualitatively. 5.

national integration. untouchability.g. after realistically ascertaining its practical implications. linguism. 2. 4. family planning. To prepare and maintain the necessary records. 7. To save the union organization from the exploitation by vested interests –personal and political. To launch special campaigns against the social evils of corporation. communalism. To continuously review the relevance of union objectives in the context of social change. To create public opinion favourable to government‟s policies and plans. hoarding. 12. casteism. To curb inter-union rivalry and thereby help in the creating of unified trade union movement. and to mobilize people‟s participation for their effective implementation. 3. To keep away from unfair labour practices. To eradicate casteism. illiteracy. inequality. to know people‟s reaction towards them. regionalism. To exert pressure. dowry. regionalism and linguism within the trade union movement. 8. black marketing. dirt and disease. smuggling. 10. and to make necessary modifications.. sex. 9. e. and to change them accordingly. etc. 6. . price rise. Functions relating to society 1. 5. nepotism. To manage the trade union organization on scientific lines. To actively participate in the development of programmes of national development. To render all sorts of constructive cooperation in the formulation and implementation of plans and policies relating to national development. on the government to enact legislation conducive to the development of trade unions and their members. To create public opinion favourable to trade unions and thereby to raise their status.6. 14. 11. afforestation. To publicise the trade union objectives and functions. To resolve the problem of factionalism and promote unity and solidarity within the union. 13.

which ultimately cuts at the very root of unionism. there should be “One union in one Industry”. The existence of different conflicting or rival organisatoins. is greatly responsible for inadequate and unhealthy growth of the movement. Problems of Recognition of Trade Unions Multiplicity of trade unions Multiple rival unionism is one of the great weaknesses of the Indian trade union movement. Inter-union and intra-union rivalry undermines the strength and solidarity of the workers in many ways. This develops small unions. Multiplicity of unions lead to inter-union rivalries. Within a single organisation one comes across a number of groups comprising or „insiders and outsiders‟. with a view to increasing their political influence”. on the Indian Railways. namely: .Problems of Trade Union The following are some of the most important problems of the trade unions in India: 1. Financial Weakness 4. with divergent political views. Multiplicity of Trade Unions and Inter-union Rivalry 2. there are two parallel Federations – the Indian Railway Men‟s Federation and Indian National Federation of Railway-men. Leadership Issues 5. and „high‟ and low caste‟ people. and reduces the effectiveness of workers in securing their legitimate rights. and „old-timers‟. weakens the power of collective bargaining. “Multiple unions are mainly the result of political outsiders wanting to establish unions of their own.g. Small Size of Unions 3. „new-comers‟. moderates‟ and radicals‟. e. Trade rivalry is acute and pervades the entire industrial scene in India. there exists parallel and competing unions. Practically every important industry. Therefore. Small Size of unions The small size of unions is due to various factors. Politicalisation of the Unions 6. Inter-union rivalry Another vexing problem is that of intra-union rivalry.

This process is still continuing and has pulled down the average membership. leadership of trade unions by persons who are professional politicians and lawyers and who have no history of physical work in the industry.e. Rivalry between the unions Lack of unity among workers. Low bargaining power. Unionism in India started with the big employers and gradually spread to smaller employers. The other reasons are low subscriptions and irregular payments of subscriptions by the members. namely. i. . The structure of the trade union organization in the country – which is in most cases the factory or the unit of employment.  The rank and the file are largely illiterate as such they cannot effectively communicate with the management. Leadership issues Another disquieting feature of the trade unions is the „outside‟ leadership. Lack of ability among the leaders and members. a new union is formed. so whenever employees in a particular factory or mine are organized.  The fact that by seven workers may form a union under the Trade Union Act of 1926.   The small size of unions create problems such as:      Lack of funds to help its members. Rivalry among the leaders and the Central Organisation has resulted in multiplicity of unions. and get it registered and a large number of small unions have grown. There are several reasons for this phenomenon. Though the number of unions and union membership are increasing average membership is declining. Financial weakness The financial weakness of the union may be attributed to the small size of union and poor ability of its members to contribute.

It felt that. 87) concerning “freedom of association” and protection of the right to organize. The Commission also refers to the ILO convention (No. maximizing the welfare of their members”. leading to intra-union rivalry. Further. The National Commmission on Labour gave a good deal of though to the issue whether outside leadership shoul be retained. lack of welfare and other constructive activities which may infuse strength into unions and to conduct collective bargaining effectively the unions depend on outside leadership. Again. Outside leadership of the unions leads to political unionism (each union having an allegiance to a different political party). usually a politician. much less than the number legally permitted. they fail to pay adequate attention to any one union. Intensification of worker‟s education. leads to multiplicity of unions. which in turn. in bigger unions. For avoiding victimisation of worker-office-bearers of the trade unions. and the vicious circle thus goes on and on. . For ensuring a measure of „equation of power‟ in collective bargaining where the workers are generally uneducated and have a low status. and the workers‟ organisation shall have the right to elect their representative in full freedom. The commission‟s own estimate was that outsiders in the unions executive bodies would be about 10%. “there should be no ban on non-employees holding positions in the executive body of the unions as that would be a very drastic step”. therefore cannot put forth the case of the union effectively. It makes the following recommendations to deal with the problem of outside leadership:   Ex-employees of an industrial enterprise should not be treated as outsiders. direct contact with the rank and file membership and the top leaders is missing because of their hold on a number of trade unions in varied fields. The union‟s lack of formal power tends to put a premium on the dharismatic type of the leader. They. which cause low membership leading to unsound finances and in turn. who can play the role of the defender of the workers against the management.    These political leaders are inevitably concerned with “maximizing their individual standing as political leaders rather than with. and For lack of financial resources to appoint whole time office-bearers. Over and again it has been realized that “a reorientation of policy is desirable by a switchover to working class leadership”. often these union leaders are not adequately aware of the actual needs and pressing problems of the members.

thus made. Dr. leadership should be promoted from within the rank and file and given a more responsible role. therefore. It has become fragmented and disjointed. have tended to become tools of party politics”. the decisions also change. there develops factional split in the same trade union professing the same political ideology. the most distressing feature is its political character. . it must be clear that much of the behaviour of Indian unions. Raman‟s observations are: “Trade union multiplicity in India is directly traceable to the domination and control of the trade union movement by rival political parties…. In a recent study. with the result that “instead of becoming a unity and mighty torrential river. With the split in the political ideology. i. Dr. Establishing a convention that no union office-bearer will concurrently hold an office in a political party. and political leaders continue to dominate the unions even now… The supreme consequence of political involvement of unions in India in general.    Penalties for victimization and similar unfair labour practices such as would discourage the growth of internal leadership. Each section pulls itself in different directions. the movement is sub-divided into numerous rivulets”. The divisions and sub-divisions. Pandey had reached the conclusion: “The unions are closely aligned with political parties. have affected adversely the trade union movement. Hence. “Even to the most casual observer of the Indian trade union scene. Limiting the proportion of outsiders in the union execute. It should be noted that decisions in the trade union fields are taken by the respective political parties to which the unions are attached and.e. Intensification of efforts by trade union organizers to train workers in union organisation. The clay of unionism is possibly an effervescent industrial labourers. whether it be militant or passive behaviour can be explained in political terms. This will enable them to participate in the decision-making and managing the union affairs effectively. with the changing political situation. Politicalisation of the unions On of the biggest problems of the country‟s trade union movement faces is the influence of the political parties. Harold Crouch has observed. Initiative should come from the workers themselves through the launching of a vigorous programme for Workers‟ Education.. but the sculptors chiseling it into shape have certainly been members of political parties. formed to safeguard and promote the social and economic interests of workers.

cultural and recreational facilities. Problems of recognition of trade unions This is one of the basic issues in our industrial relation system because employers are under no obligation to give recognition to any union. to offer responsible cooperation in improving levels of production and productivity.Dr.L. to enlarge opportunities for promotion and training. to safeguard security of tenure and improved conditions of service. but the union cause is endangered when unions allow themselves to become pawns in political fights. to promote identity of interests of the workers with their industry. Raman ahs very aptly conclude that: “The use of political methods by trade unions may be to their advantage. to improve working and living conditions. or that two or more unions existed. the attitudes of the employers towards the trade unions have been very hostile. labour-oriented. as given below. discipline. Recommendations of National Commission on Labour for Strengthening Trade Unions The National Commission on Labour has made a large number of recommendations on different aspects of trade unions. has stated that the “unions must pay greater attention to the basic needs of its members which are:         to secure for workers fair wages. In the initial stages. The employers many a times have refused recognition to trade unions either on the basis that unions consist of only a minority of employees. to cooperate in and facilitate technological advance by broadening the understanding of workers on its underlying issues. and high standard of quality. Enlargement of functions The N. Political unionism has prevented the development of a movement or organisation that could be termed the workers‟ own and turned the soil upside down to such a degree that it has become impossible for a genuine labour-inspired. and generally . worker-led trade union movement to take root”.C. to provide for educational.

influencing the socio-economic policies of the community through active participation in the formulations of these policies.L. “unions should also undertake social responsibilities such as    promotion of national integration. the Commission was of the opinion that its recommendation regarding recognition of unions. Union rivalries In regard to union rivalries. shift to collective bargaining and institution of an independent authority for union recognition would reduce them. and instilling in their members a sense of responsibility towards industry and community”. In addition. to promote individual and collective welfare”.C. Leadership Regarding leadership the N. Registration The Commission has recommended that registration should be cancelled if: (a) its membership fell below the minimum prescribed for registration. (ii) steps should taken in to promote international leadership and give it more responsible role (iii) internal leadership should be kept outside the pale of victimization. Intra-union rivalries should be left to the central organisation concerned to settle and if it is unable to resolve the dispute the Labour Court should be set up at the request of either group or on a motion by the government. has recommended that “(i) There should be not ban on non-employees holding the position in the executive of the unions. building up of internal leadership. (c) it submitted defective returns and defects were not rectified within the prescribed time. Improvement of financial condition . (iv) permissible limit of outsiders in the executive of the unions should be reduced to 25%. and (d) an application for re-registration should not be entertained within six months of the date of cancellation of registration. and (v) ex-employees should not be treated as outsiders”. The main objective should be to draw unions as closely as possible into the entire development process. (b) the union failed to submit its annual.

workers‟ mutual insurance organisatoins. associations of workers using the same skill. What distinguishes one organisation from another is the particular aspects of that broad objective it is endeavouring to pursue. Progressing from .To improve the financial conditions of the unions. in some countries the term “labour movement” is virtually synonymous with “trade unionism”. either by examination of membership records or if it consider necessary by holding an election by secret ballot open to all employees. primarily by the device of collective bargaining.L. “it would be desirable to make recognition compulsory under a Central Law in all undertakings employing 100 or more workers or where the capital invested in above a stipulated size. The relationship among the various parts of the labour movement varies from country to country and from period to period. mainly in Great Britain the U. has been of the opinion that. Not all countries have produced the entire gamut of organisation referred to above. The early unions were formed a partly as social clubs but soon became increasingly concerned with improving wages and working conditions. producers‟ or consumers‟ cooperatives. as. That movement consists of several more or less intimately relative related organization such as labour parties. Origins and background of the trade union movement Early forms of labour organisatoins Union oriented. and social status of their members. Recognition of the unions The N. trade unionism must be examined as part of a wider concept-the labour movement as a whole.C. for the latter were composed of master craftsmen who owned capital and often employer several workers. the Commission recommended for the increase of membership fees. There is no connection between trade unions and medieval craft guilds. The minimum membership should be 25 per cent.S. cultural. and the particular method it employees. if recognition is sought for an industry in a local area”.A in the late 18th and early 19th centuries. All have the common objective of improving the material. A trade union seeking recognition as a bargaining agent from an individual employer should have a membership of at least 30 per cent of workers in that establishment. Trade Unionism in the International Context To be understood in the international context. and workers‟ education and sports association. Verification of membership The Industrial Relations Commission should decide the representative character of a union.

Industrial unions attempted to organize all works employed in producing a given product or service. sometimes including even the general office or white-collar workers. however. labour movements arose out of the protest of workers and intellectuals against social and political systems based upon discrimination according to to trade within the same city or area. the International Federation of Trade Unions was established. International Trade Union Organisation The large trade union movements of various countries for may years have maintained loose alliances by joining international organisations of labour. It proved to be ineffective and disappeared during World War I. In 1901. Factors favouring unionism The unions of the early 19th century were almost exclusively based upon a particular craft. usually hold membership. rather than individual unions. Unions that recruited members from such groups – whose ranks were expanding rapidly as a result of new technologies – emerged either as industrial unions or as general unions. the clubs formed local associations which. social status. Discrimination in political franchise (restriction on or outright denials of the vote) and a lack of educational opportunities. chiefly under the guidance of German unions. and toward the end of the 19th century Great Britain was including unskilled workers. The Communist . were almost selfsufficient. semiskilled workers – developed. With industrial development. union mergers. federations of unions. established by the new government of the Soviet Union. But as mass production industries – which required large numbers of rapidly trained. even though they usually started from a base in one particular industry. local associations sooner or later followed the expansion of production beyond the local market and developed into national unions of the same trade. and the whole spirit of a society founded upon acknowledged class distinction were the main sources of the social protest at the root of modern labour movements. In 1919 it was revived at Amsterdam. Obstacles to union organisation In most Western countries. anti-union legislation. a rend toward large-scale union organisation grew. But changing technologies. and ideological factors led to the development of various kinds of unions that would not fit easily into any of the above categories. but immediately came into collision with the Red International of Labour Unions. General unions included skilled workers and labourers of all grades from different industries. because they carried on their main activities on a purely local level. income and property. Such a system offered few avenues for individual or collective advancement. These in turn formed national union federations.

Dakar (Senegal). At the Nov. 1994 Congress in Damascus. and in 1968 it became the WCL and dropped its openly confessional approach. its policy was based on the papal encyclicals Return novarum (1891) and Quadragesimo anno (1931). regional offices have been set up in New Delhi (India). which meets every 4 . In its concern to defend trade union freedoms and assist trade union development. World Federation of Trade Unions (WFTU) Origin The WFTU was founded in 1945 on a worldwide basis. by June 1951 all NonCommunist trade unions and the Yogoslav Federation had withdrawn. A membership of 11 million in about 90 countries is claimed. Today. the American Federation of Labour declined to participate. and the French Confederation Generale du Travail has proposed withdrawal to its members. The biggest group is the Confederation of Christian Trade Unions (CSC) of Belgium (1. USA and Netherlands trade union organisatoins withdrew and went on to found the ICFTU. Havana (Cuba). it went our of existence in 1940 as a large proportion of its 3.organisation had a brief period of expansion but soon dwindled away and had disappeared before 1939. representing trade union organisatoins in more than 50 Communist and Non-Communist countries. as well as a mainly Roman Catholic membership. unions broke their links with the Communist parties and most were later accepted into the ICFTU. it has Protestant. the WCL differs little in policy from the ICFTU above. Organisation The WCL is organized on a federative basis which leaves wide discretion to its autonomous constituent unions. with the WFTU under Communist control. In January 1949. Buddhist and Moslem member confederations. British. Vietnam). Most of the national trade union centers in Africa and Latin America moved to the ICFTU after 1989. Reconstituted in 1945 and declining to merge with the WFTU or ICFTU.4 million members were in Italy and Germany. In a move towards decentralization. most WFTU delegates come from the developing countries (Cuba. where affiliated unions were suppressed by the Fascist and Nazi regimes. after the collapse of the European Communist regimes. membership became uncertain. World Confederation of Labour (WCL) Founded in 1920 as the International Federation of Christian Trade Unions. India. Damascus (Syria) and Moscow (Russia). South Korea. Its governing body is the Congress.2 million). By the 1990s. From he outset.

the International Federation of Christian Trade Unions (IFCTU). and for regional organisation to promote free trade unionism. International Confederation of Free Trade Unions (ICFTU) Origin The founding congress o f the ICFTU was held in London in December 1949 following the withdrawal of some Western trade unions from the World Federation of Trade Unions (WFTU). There are regional organisation in Latin America (Caracas). as amended. trade union cooperation projects and also the administration of the . at its founding congress in 1949. now called the WCL (World Confederation of Labour). with legally binding minimum labour standards. invited the affiliates of the IFCTU to join. The General Council which meets at least once a year. Organisation The Congress meets every 4 years. and to defend fundamental human and trade union rights. it campaigned for the adoption by the WTO of a social clause. to reduce the gap between rich and poor. the WCL has been a comparatively ineffective organisation. It elects the executive Board of 50 members nominated on an area basis for a 4-years period. is composed of the members of the Confederal Board (at least 22 members. Italy and Latin America. especially in developing countries. On the international scene. international trade federations. elected by the Congress) and representatives of national confederations. Africa (Banjul. is made up largely of Catholic labour unions in France. Gambia) and Asia (Manila) and a liaison centre in Montreal. The ICFT. Its influence limited to a few countries in Europe and Latin America.years. 5 seats are reserved for women nominated by the Women‟s Committee. Various Committees cover economic and social policy. and trade union organisatoins where there is not confederation affiliated to the WCL. The constitution. A much smaller international organisation. violation of trade union and other human rights. In 1996. Aims The ICFTU aims to promote the interests of the working people and to secure recognition of worker‟s organisation as free bargaining agents. The ICFTU represents some 124m. which had come under Communist Control. The Confederal Board is responsible for the general leadership of the WCL. but the invitation was rejected. and the Board meets at least once a year. in accordance with the decisions and directive of the Council and Congress. Its headquarters is at Belgium. The Congress appoints (or re-appoints) the Secretary-General at each 4-yearly meeting. workers across 196 affiliated organizations in 136 countries. provides for cooperation with the UN and the ILO.

Problems of union organization were discussed at ICFTU seminars in various parts of the world.International Solidarity Fund. It is wholly financed by contributions from its affiliates. and implemented that policy by giving such aid as was possible to free labour in Spain and certain Latin American countries. and regional organizations in America (Caracas).000. increasing the standard of living for workers everywhere. By 1960 it has created an international Solidarity Fund of $2. It has been the consistent policy of the ICFTU to cooperate with the United Nations Educational. with regional or subregional offices in may other countries. and support to colonial people in their struggle for freedom. There are joint ICFTU-International Trade Secretariat Committees for coordinating activities. chiefly because of difference among its affiliates in the approach to unions in Communist-controlled countries. Cameroon. India. The ICFTU consistently opposed Fascist as well as Communist dictatorships. Scientific. Belgium. Asia (Singapore) and Africa (Nairobi) Purposes of ICFTU Striving for world peace. Form one or more of those centers it conducted numerous educational conferences.000 to aid workers who became victims of oppression and to promote democratic trade unionism in economically under developed countries. the spreading of democratic institutions. a worldwide strengthening of free trade unions. It found its work to be most effective in the area of international education. branch offices in Geneva and New York. It also furnished direct financial assistance to workers in Hungary and Tibet and campaigned against racialist policies in South Africa. the ICFTU established headquarters in Brussels. International Labour Organisation (ILO) . To facilitate the functioning of its widespread activities. Cyprus. maintained a residential trade union training college in Calcutta. Failures and successes of the ICFTU Lack of homogeneity among affiliates hindered the activity of the ICFTU in many fields. Okinawa. It provided assistance to inexperienced works in areas in the first stages of industrialization and sent organizers to Lebanon. India and assisted in founding an African Labour College in Kampala. and Cultural Organisation and with the International Labour Office in Geneva. with experienced labour leaders and labour spokesmen from the less industrialized countries participating. Nigeria and elsewhere. Uganda. The ICFTU has its headquarters at Belgium. Indonesia.

the ILO has been confronted with the tremendous task of promoting social justice by improving the work and conditions of life in all parts of the world. From the very beginning. The three main functions of the ILO are. The aims and objectives of ILO are set out in the preamble to its Constitution and in the Declaration of Philadelphia (1944) which was formally annexed to the Constitution in 1946. The preamble affirms that universal and lasting peace can be established only if its is based upon social justice. the Governing Body and the International Labour Office. disease. recognition of the principle of freedom of association. Industrial Committees. are attended by four delegates from each member State. draws attention to the existence of conditions of labour involving injustice. hardship and privation of a large number of people. is its tripartite character. of whom two are government delegates and one each representing respectively the employers and the work people of the State. The . The International Labour Conference is the supreme organ of the ILO and acts as the legislative wing of the Organisatoin. The Preamble also states that the failure of any nation to adopt human conditions of labour is an obstacle in the way of other nations desiring to improve labour conditions in their own countries. to collect and disseminate information on labour and industrial conditions.    to establish international labour standards. namely. India has been a member of the ILO since its inception. protection of workers against sickness. and to provide technical assistance for carrying ort programmes of social and economic development. protection of children. protection of the interests of migrant workers. young persons and women. etc. the International Labour Conference. The meeting of the General Conference. held normally every year. and organisation of vocational and technical education. provision of an adequate living wage. and declares that improvement of these conditions is urgently required through such means as the regulation of hours of work. A unique feature of the ILO. as distinct from other international institutions. prevention of unemployment. and injury arising out of employment. It became the first specialized agency of the United Nations in 1946 in accordance with an agreement entered into between the two organizations. The ILO was the only international organisation that survived the Second World War even after the dissolution of its parent body. The ILO consists of three principal organs. The work of the Conference and the Governing Body is supplemented by that of Regional Conferences.The International Labour Organisatoin (ILO) was set up in 1919 by the Versailles Peace Conference as an autonomous body associated with the League of Nations. Regional Advisory Committees.

health. draws up the agenda of each session of the Conference and examines the implementation by member countries of its Conventions and Recommendations. adopt the Organization‟s biennial programme and budget. relations. employment. labour-management. On the other hand. industrial safety. productivity. The ILO adopted a series of Conventions and Recommendations covering hours of work. a Recommendation creates no such obligations but is essentially a guide to national actions. etc. creates binding international obligations on the country concerned. democratic and changing social order necessary for lasting peace. holidays leave with wages. . An important aspect of its work relates to the provision of assistance to member States. The Governing Body is the executive wing of the Organisation. provides the secretariat for all conferences and other meetings and is responsible for the day-to-day implementation of the administrative and other decisions of the Conference. children and your persons. It appoints the DirectorGeneral. the Governing Body. Briefly explain the history. Trace the origin and growth of trade union movement. employment of women. Wilfred Jenks describes the International Labour Code as the corpus juris of social justice. 2. wages and wage fixation. In fact. labour inspection. etc. It also serves as a clearing house of information on all labour matters. What are the functions of a trade union? 3. hygiene. social security. whose headquarters are located at Geneva. Review Questions 1. These dynamic instruments continue to be the principal means at the disposal of the ILO to strive for establishing a just. when ratified. these instruments have been included in the category of “international labour legislation”. The Director-General is the chief executive of the International Labour Office. night work. adopt international labour standards in the form of conventions and Recommendations and provide a forum for discussion of social and labour issues. The International Labour Office. In order to achieve its objective. What are the problems of a trade union? 4. These Conventions and Recommendations taken together are known as the “International Labour Code”. weekly rest. objectives and functions of ILO. freedom of association. the ILO has relied on its standard-setting function. The international labour standards take the form of Conventions and Recommendations. A Convention is a treaty which.General Conference elect the Governing Body. One of the fundamental obligations imposed on governments by the Constitutions of the ILO is that they must submit the instruments before the competent national or State or provincial authorities within a maximum period of 18 months of their adoption by the Conference for such actions as might be considered practicable.


UNIT – III 4. Industrial Disputes Grievances Handling 6. Employee Discipline . 5.

Lesson 4 Industrial Disputes
Meaning According to Section 2(K) of the Industrial Disputes Act, 1947, and „industrial dispute‟ means “any dispute or difference between employers and employees or between employers and workmen or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour of any person. Thus form the legal point of view, industrial dispute does not merely refer to difference between labour and capital as is generally thought, but it refers to differences that affect groups of workmen and employers engaged in an industry. Essentially, therefore, the differences of opinions between employers and workmen in regard to employment, nonemployment, terms of employment or the conditions of labour where the contesting parties are directly and substantially interested in maintaining their respective contentious constitute the subject-matter of an industrial dispute. Causes of Industrial Disputes The causes of industrial conflict or disputes have been much varied. These may be described partly a psychological or social and partly political, but predominantly economic. Some important factors responsible for industrial conflict and poor industrial relations many be briefly stated as follows:  Management‟s general apathetic towards workers or employees because of their contention that they want more and more economic or monetary rewards and want to do less work. Mental inertia on the part of both management and labour. Lack of proper fixation of wages inconformity with cost of living and a reasonable wage structure generally. Bad working conditions. Attempts by management to introduce changes (such a rationalization, modernization or automation) without creating a favourable to appropriate climate or environment for the same.

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Lack of competence or training on the part of first-line supervision as well management at upper levels in the practice of human relations. Assignment of unduly heavy work-loads to worker, unfair labour practices (such as victimization or undue dismissal). Lack of strong and healthy trade unionism, lack of a proper policy of union recognition and inter-union rivalries. A spirit of non-cooperation and a general tendency among employees to criticize or oppose managerial policies or decisions even when they may be in the right directions. A fall in the standard of discipline among employees largely due to wrong or improper leadership, often resulting in insubordination or disobedience on the part of employees. Difference in regard to sharing the gains of increased productivity. Inadequate collective bargaining agreements. Legal complexities in the industrial relations machinery or settlement of industrial disputes. Lack of necessary changes in the working of government in accordance with changing needs and circumstances. Combination of too much law and too little respect for law even at high levels. Growing factional and personal difference among rank-and-file employees who are union members or union leaders and a tendency on the part of the management in some cases to prefer having with outside leaders and not give due respect to worker-leaders. Political environment of the country; and Agitation and wrong propaganda by selfish labour leaders to further their own interests of their own party.

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Forms of Disputes Strikes, lockouts and gheraos are the most common forms of disputes. Strike

“Strike” means a cessation of work by a body of persons employed in any industry acting in combination; or a concerted refusal or a refusal under a common understanding or an number of persons who are or have been so employed to continue to work or to accept employment. The following points may be noted regarding the definition of strike:   Strike can take place only when there is a cessation of work or refusal to work by the workmen acting in combination or in a concerted manner. A concerted refusal or a refusal under a common understanding of any number of persons to continue to work or to accept employment will amount to a strike. A general strike is one when there is a concert of combination of workers stopping or refusing to resume work. Going on mass casual leave under a common understanding amounts to a strike. If on the sudden death of a fellow-worker, the workmen acting in concert refuse to resume work, it amounts to a strike (National Textile Workers‟ Union Vs. Shree Meenakshi Mills (1951) II L.L.J. 516). The striking workman, must be employed in an „industry‟ which has not been closed down. Even when workmen cease to work, the relationship of employers and employees is deemed to continue albeit in a state of belligerent suspension.

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Types of Strike  Stay-in, sit-down, pen-down strike: In all such cases, the workmen after taking their seats, refuse to do work. All such acts on the part of the workmen acting in combination, amount to a strike. Go-slow: Go-slow does not amount to strike, but it is a serious case of is conduct. Sympathetic strike : Cessation of work in the support of the demands of workmen belonging to other employer is called a sympathetic strike. The management can take disciplinary action for the absence of workmen. However, in Remalingam Vs. Indian Metallurgical Corporation, Madras, 1964-I L.L.J.81, it was held that such cessation of work will not amount to a strike since there is no intention to use the strike against the management. Hunger strike: Some workers may resort to fast on or near the place of work or residence of the employers. If it is peaceful and does not result in cessation of work, it will not constitute a strike. But if due to such an fact, even those present

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 Lockout Section 2(1) of the Industrial Disputes Act. a strike not sanctioned by the union. It amounts to criminal conspiracy under Section 120-A of the I.C. it does not constitute a strike. Illegal strikes and lockout are of two types:   Those which are illegal form the time of their commencement.  Lightning or wildcat strike: A wildcat strike is an unofficial strike i. In such a situation union is obliged to use its best efforts to end the strike. Work-to-rule: Since there is a no cessation of work.e. and is not saved by Sec. lockout. Regulation of strikes and lock-outs Employees do not have an unfettered right to go on strike nor do employers have such right to impost lockout. thus. Vs. Further. 17 of the Trade Unions Act on the grounds of its being a concerted activity. the standing order of a company generally required for notice. temporary suspension of work called lay-off is not lock-out. . Similarly.for work. and Those which are not illegal at the time of commencement but become illegal subsequently. Such strikes occasionally occur in violation of the nostrike pledge in collective bargaining agreements. is the counterpart of strike – the corresponding weapon the hands of employer to resist the collective demands of workmen or to enforce his terms. 1947. Their Workmen). Gherao Gherao means encirclement of the managers to criminally intimidate him to accept the demands of the workers. Such strikes are prohibited in public utility services under Section 22 of the Industrial Disputes Act. 1947 defines “lockout” to mean the temporary closing of a place of employment or the suspension of work. It has been held by the courts that the suspension of work as a disciplinary measure does not amount to lockout. A strike or lockout commenced or continued in contravention of those restriction is termed illegal and there is serve punishment provided for the same. or the refusal by an employers to continue to employ any number of persons employed by him.P. could not be given work. it will amount to strike (Pepariach Sugar Mills Ltd. The Industrial Disputes Act lays down several restrictions on the rights of both the parties.

or with both.26(2): Any employer who commences. continues or otherwise acts in furtherance of a strike which is illegal. Penalty for illegal lock-out [Sec. etc. [Sec.000 or with both.000 or with both. 28] : Any person who knowingly expends or applies any money in direct furtherance or support of any illegal strike or lock-out shall be punishable with an imprisonment for a term which may extend to 6 months. no person employed shall go on strike in breach of contract    Without giving notice of strike to the employer.Section 22 and 23 of the IDA provide for certain restriction which if not followed make strikes and lockouts illegal from their very commencement. or Within fourteen days of giving such notice. or Before the expiry of the date of strike specified in any such notice as aforesaid. 27]: Any person who instigates or incites others to take part in. shall be punishable with imprisonment for a term which may extend to 6 months. 1. Consequences of illegal strikes and lock-outs.26(1)]: Any workman who commences. or otherwise acts in furtherance of. Machinery for Prevention and Settlement of Industrial Relations . continues or otherwise acts in furtherance of a lock-out which is illegal. 3. 1. or with fine which may extend to Rs. 4. or During the pendency of any conciliation proceedings before a Conciliation Officer and seven days after the conclusion of such proceedings. shall be punishable with imprisonment for a term which may extend to 1 month. According to this section. 1. Penalty for illegal strikes [Sec. Penalty for giving financial aid for illegal strikes and lock-outs [Sec. as here matter provided. Penalty for instigation. 50.000 or with both. 1. shall be punishable with imprisonment for a term which may extend to 1 month. or with fine which may extend to Rs. a strike or lock-out which is illegal. within 6 week before striking. or with fine which may extend to Rs. or with fine which may extend to Rs. 2.

1947 State Acts Labour Administration (States & Central Levels) Works Committee Conciliation Voluntary Arbitration Court of Enquiry Adjudication Conciliation Officers Conciliation Board Labour Court Industrial Tribunal National Tribunal Voluntary Methods Code of discipline Formally announced in 1958.D. the Code of Discipline provides guidelines for the workers. conciliation and voluntary arbitration. unions and employers. Act. . A few important provisions of code of discipline are:  Strikes and lockout cannot be declared without proper notice.The machinery for prevention and settlement of the disputes has been given in the following figure: Machinery for Prevention and Settlement of Industrial Relations Voluntary Methods Government Machinery Statutory Measures Code of Discipline Tripartite Machinery Worker‟s Participation Collective Bargaining I. The code which was approved by major national trade unions and principal organisation of employers enjoyed on them to create an environment of mutual trust and cooperation and to settle the disputes by mutual negotiation. It required the employers and workers to utilize the existing machinery for the settlement of disputes.

Walpole. pride and accomplishment. therefore. workers and employers. Joint Consultation Modes . According to G. and ties his fate to. The forms of workers participation may be as follows: 1. and the same number of workers‟ and employers‟ organisatoins. workers participation is based on the fundamental concept that the ordinary workers invest his labour in. These various committees are basically of advisory nature. coercion etc. According to one view. the International Committees. The concept of workers participation in management is based on “Human Relations” approach to management which brought about new set of values to labour and management.S. a feeling of belonging to his place of work and a sense of workmanship and creativity. intimidation. pattern of management relations and subject or area of participation. he has a legitimate right to have a share in influencing the various aspects of company policy”. it gives him the freedom and the opportunity for self-expression. these committees include representatives from centre and the states. Workers’ participation in management Workers‟ participation in management is an essential ingredient of industrial democracy. the Standing Labour Committee. There should be no go slow statistics or any resort to deliberate damage to plant or property or resort to acts of violence.  The parties should not take any action without consulting each other. his place of work and. Generally. participation in management gives the workers a sense of importance. yet they carry considerable weight among the government. The forms of workers participation in management vary from industry to industry and country to country depending upon the political system. Tripartite machinery Tripartite machinery consists of various bodies like Indian Labour Conference. the Central Implementation and Evaluation Committee and the Committee on conventions. It provides for the integration of his interests with those of the management and makes him a joint partners in the enterprise”. The code has moral sanction only and it does not entail any legal liability or punishment.

The Directorate General of Employment and Training (DGET). It also provides the employer some control over the employees. It provides them a collective strength to bargain with the employer. The process of collective bargaining is bipartite in nature i. Thus collective bargaining serves to bridge the emotional and physiological between the workers and employers through direct discussions. It also helps the works to achieve reasonable wages. Workers Representation on Board It should be borne in mind that when individuals are provided with opportunities for expression and share in decision-making. working conditions. fringe benefits etc. or Auto Management Scheme 4. Collective bargaining Collective bargaining is a source of solving the problems of employees in the work situation collectively.2. thereby.. promoting efficiency and increased productivity. the Director General of Mines Safety (DGMS). Office of Chief Labour Commissioner (CLC) (Central). the Director General of Factory Advice and Labour Institutes. The employees put their demands before the employers and the employers also gives certain concession to them. they show much initiative and accept responsibility substantially. Thus it ensures that the management cannot take unilateral decisions concerning the work ignoring the workers. a better understanding of their role in the smooth functioning of industry and provides them a means of self-realization. and Industrial Tribunals are some of the agencies through which the Central Government . Joint Decision Model 3.e. Government Machinery The Ministry of Labour and Employment at the centre is the key agency for the policy formulation and administration in all the matters pertaining to labour. Self Management. It provides a good climate for discussing the problems of workers with their employers. working hours. The State governments with the cooperation of their labour departments are responsible for the enforcement thereof. The rationale of workers‟ participation in management lies in that it helps in creating amongst the workers a sense of involvement in their organisatoin. the negotiations are between the employers without a thirds party‟s intervention.

Industrial Disputes Act. The IDA. the Industrial Disputes Act. In the conciliation process the officer ties to bring the disputing parties together towards a settlement of the dispute and hence works as a mediator. Having representatives of employees and employees. The intervention of conciliation officer may e mandatory or . 1947 provides for conciliation and it can be utilized either by appointing Conciliation Officer or by setting up Board or Conciliation. The Conciliation Officers are appointed by the Government by notifying in the Official Gazettee. A work committee aims at promoting measures for securing the preserving amity and good relations between employees and workers. 1947 provides for setting up works committees in every organisation having 100 or more employees. 1947 The States are free to frame their own labour laws as the labour falls in the concurrent list. the IDA. 1947 will be applicable to the industries not covered by the State Legislation. 1947 applies. in the States having their own Acts. U.discharges its functions related to framing of labour laws and settlement of industrial disputes. yet their functions mainly include providing proper working conditions and amenities for the welfare of employees at the work place or away from the work. In the rest of the states.P. The Labour Secretary is the overall incharge of policy formulation and administration. has been amended several times since then. Though the act does not define the jurisdiction of these committees. Works committees The IDA. Commissioners of Labour. Additional and Deputy Commissioners of Labour act as Conciliation Officer for disputes arising in any undertaking employing less than twenty workers. Formally announced in 1947.. Conciliation When the services of a neural party are availed for the amicable solution of a dispute between the disputing parties. and Rajasthan have their own Acts. Statutory Measures – Industrial Disputes Act. However. M. Usually at the State level. Under the Act the following authorities have been proposed for the investigation and settlement of industrial disputes. Some States like Maharashtra. and commissioners of labour in the States are the operative arms for the effective implementation of Labour Laws. this practice is known as conciliation. these are consultative bodies and are set up for maintaining harmonious relations at the work lace and sort out the difference if any.P.

the disputing parties can enter into an arbitration agreement in writing. The jurisdiction of Industrial Tribunal is comparatively wider than Labour Courts. The report of the court shall be published by the government within 30 days of its receipt. But in the disputes related to public utilities in respect of which proper notice is served to him. appointed by the government. 1956 incorporated Section 10A favouring voluntary arbitration. The success of voluntary arbitration depends on “a sufficient degree of mutual confidence in decision by agreement on subjects which may be submitted for arbitration”. called Presiding Officer. his intervention becomes mandatory. Industrial Tribunals and National Tribunal.discretionary. The Court of Enquiry is required to submit its report to the government ordinarily within six months from the commencement of enquiry. Labour Courts and Tribunals are now required to submit award to the appropriate government within three months in case of individual disputes The submitted award shall . The first two bodies can be set up either by State or Central Government but the National Tribunal can be constituted by Central Government only. Court of enquiry The IDA. constituted just to reveal the causes of the disputes and does not care much for the settlement thereof. Adjudication If the dispute is not settled by any other method. A Labour Court consists of one person only. The Board has to submit its report to the government regarding the dispute within two months from the date dispute was referred to it. This machinery consists of Labour Court. It consists of equal number of representatives of employers and employees under the chairmanship of an independent person. and further the Presiding Officer of Tribunal can have two assessors may be appointed by the Central Government to help its Presiding Officer. who is or has been a judge of a High Court. 1947 empowers the appropriate government to constitute a Court of Enquiry. This body basically is a fact-finding agency. The Board of Conciliation is a higher forum and is constituted for a specific dispute. when it thinks that the solution of dispute is of national significance. Voluntary arbitration Industrial Disputes (Amendment) Bill. depending on the case. In case of existed or apprehended dispute. the period can be extended. Hence it is a compulsory method which provides for three-tier system for adjudication of industrial disputes. However. the government may refer it for adjudication.

. It shall come into force on the expiry of 30 days from the date if its publication and shall be operative for a period of one published by government within 30 days from the date of its receipt. Review Questions 1. What is an industrial dispute? What are the causes of industrial disputes? 2. What are the forms of industrial disputes? 3. unless declared otherwise by the appropriate government. Explain various machineries for settlement of industrial disputes.

Lack of proper tools. arising out of anything connected with the company which an employee thinks. efficiency and productivity. breach of the freedom of association or the provisions of standing orders or non-implementation of the Government orders. proper disposal of grievances deserves special and adequate consideration in any programme of harmonizing industrial relations. It may also include representation against non-compliance with provision of a collective agreement in an establishment where it has been signed. It may be conce4ring a situation or may likely to affect the terms and conditions of employment of one worker or a few workers. a group of workers or the unions to the management relation to the terms and conditions of employment. unjust and inequitable‟. machines and equipments. It is caused due to the difference between employee expectation and management practice. Poor relationship with the supervisor. „grievance‟ may be said to “the representation by a worker. whether exposed or not. . „any dissatisfaction or feeling of injustice in connection with one‟s employment situation that is brought to the notice of the management. conciliation agreeme4nts or adjudicators‟ awards”. Rigid production standards Improper matching of the worker with the job. Areas of Grievances Grievances resulting from working conditions       Poor physical conditions of work place. In the Indian context. A grievance is a problem submitted by an employee or by a few employees of different types. Frequent changes in schedules or procedures. The accumulation of grievance leads to strikes.Lesson 5 Grievances Handling A grievance is a sign of the employees‟ discontent with job and its nature. Beach defines a grievance as. Therefore. lock outs and other forms of conflicts. Grievances usually result in definite and considerable loses to employee morale. Jucius defines a grievance as „any discontent or dissatisfaction. whether valid or not. believes or even feels to be unfair.

Grievances resulting from management policy and practices            Poor payment Lack of job security Inadequate benefits such as medical benefits, leave travel concession etc. Leave facilities Seniority Transfer Promotion Lack of career planning and development Hostility towards labour union Defective leadership style Communication gap

Grievances resulting from alleged violations of    Violation collective bargaining agreement Violation of Central/State laws Violation of common rules

Grievances resulting from personal maladjustment   Over ambition Excessive self-esteem

Methods of Indentifying Grievances The following methods can help the employer to identify the grievances: 1. Directive observation: Knowledge of human behaviour is requisite quality of every good manager. From the changed behaviour of employees, he should be able to snuff the causes of grievances. This he can do without its knowledge to the employee. This method will give general pattern of grievances. In addition to

normal routine, periodic interviews with the employees, group meetings and collective bargaining are the specific occasions where direct observation can help in unfolding the grievances. 2. Grip boxes: The boxes (like suggestion boxes) are placed at easily accessible spots to most employees in the organisation. The employees can file anonymous complaints about their dissatisfaction in these boxes. Due to anonymity, the fear of managerial action is avoided. Moreover management‟s interest is also limited to the free and fair views of employees. 3. Open door policy: Most democratic by nature, the policy is preached most but practiced very rarely in Indian organizations. But this method will be more useful in absence of an effective grievance procedure, otherwise the organisation will do well to have a grievance procedure. Open door policy demands that the employees, even at the lowest rank, should have easy access to the chief executive to get his grievances redressed. 4. Exit interview: Higher employee turnover is a problem of every organisation. Employees leave the organisation either due to dissatisfaction or for better prospects. Exit interviews may be conducted to know the reasons for leaving the job. Properly conducted exit interviews can provide significant information about the strengths and weaknesses of the organisation and can pave way for further improving the management policies for its labour force. Principles or Guidelines for Grievance Handling 1. In handling grievances, a considerable amount of time must be spent in talking to employees; gathering data from them and passing on various types of information. Such talks to be most effective, should conform to definite patterns and adhere to well tested rules. 2. The manager must seek to develop an attitude towards employees that should be helpful in gaining their confidence. The management should also display a sincere interest in the problems of employees and their constructive willingness to be to help to them with a view to gain not only their confidence but also their utmost loyal by and genuine cooperation. 3. The procedure adopt by the management in handling the grievances must be apparent. 4. Grievances should be handled in terms of their total effect on the organisation and not solely their immediate or individual effect.

Steps in handling grievances It is important that grievance must be handled in a systematic manner. The following steps should be taken in handling grievances: 1. Defining, describing or expressing the nature of the grievances as clearly and fully as possible; 2. Gathering all facts that serve to explain when, how, where, to whom and why the grievance occurred; 3. Establishing tentative solutions or answers to the grievances; 4. Gathering additional information to check the validity of the solutions and thus ascertain the best possible solution; 5. Applying the solution, and 6. Following up the case to see that it has been handled satisfactorily and the trouble has been eliminated.

Grievance handling procedures Grievance procedure is the most significant channel through which dissatisfaction of employees can be communicated to management. A grievance procedure is an ordered multistep process that the employer and employee jointly use to redress grievances and resolve disputes that arise. Thus a formal procedure which attempts to resolve the differences of parties involved, in an orderly, peaceful and expeditious manner, may be defined as grievance procedure or grievance redressal machinery. The steps in this machinery vary from organisation to organisation. For handling grievances, as a first step, the management is required to designate the persons for each of the various departments to be approached by the works and the department heads for handling grievances as the second step. A Grievance Committee may also be constituted with representatives of workers and management. The model grievance producer give the various steps through which a grievance should be processed. First, the grievance is taken to the departmental representative of the management who has to give an answer within 48 hours. Failing this, the aggrieved worker/ employee can beet the departmental head along with the departmental representative of the management and this step is allotted three days. Above this, the grievance is taken up by the Grievance

the grievance may be referred to voluntary arbitration. but also for his management. etc. Such a reply in given generally within a week. If the aggrieved employee is not satisfied with the reply received from his supervisor. he may approach the Factory Manager either personally or in writing for the redressal of his complaint. Any aggrieved employee may approach his immediate supervisor for the redressal of any complaint regarding his work. yet they should be resolved as close as possible to their source. who will. who will. CASE Sandoz (India) Limited Grievance Settlement Procedure 1. 2. The supervisor will look into the complaint.Committee which should make its recommendations to the manager within seven days. . In the case of any grievance arising out of discharge or dismissal. he can make an appeal for revision and the management has to communicate its decision within a week. investigate the matter personally and give a reply within a further period of 3 days to one week. The Factory Manager will look into the complaint and the reply given by him will be final in the matter. Although the grievance procedure gives the employees opportunity to raise their grievances to the highest possible level of management. 3. The main object of grievance procedure is to resolve the grievance at earliest possible stage. the workman or employee has the right to appeal either to the dismissing authority or to a senior authority specific by the management within a week from the date of dismissal or discharge. If the employee concerned is still not satisfied. but seen to be done and the presence of a trade union representative with the aggrieved party helps to ensure fair play not only for the employee concerned. discuss with his departmental head if necessary. consult the Personal Department if necessary and give a reply to the aggrieved employee within a period of 3 days to one week. The formal conciliation machinery will not be invoked till the final decision of the top management has been found unacceptable by the aggrieved employee. The management must convince itself that justice is not only done. he may approach his departmental head. In the case of non-settlement. in turn. If the employee is not satisfied. The final decision of the management has to be communicated to the workers or employee concerned within three days of the Grievance Committee‟s recommendations. in turn. conditions pertaining to his work.

6. If a grievance arises out of an order given by the Management. the said order shall be complied with before the workman concerned invokes the procedure laid down for redressal of grievances. he may approach the Management through the Union when the matter is taken up at the Union-Management forum for settlement on tripartite basis or by adjudication/ arbitration. 5. Define „grievance‟ and state the causes of grievances.4. previous permission from his immediate superior should be obtained. 3. Discuss briefly grievance handling procedures. . 2. Review Questions 1. Indicate the guidelines for handling grievances. If it is necessary for the workman to leave the work place on a call from any authority under this procedure. If the employee still continues to be aggrieved.

It is a process of bringing multifarious advantages to the organisation and its employees. improving and stabilizing the personality of workers. Negative Discipline. on the other hand. In other situations. it is control gained by enforcing obedience. strengthens or perfects individual behaviour. includes both the application of penalties for violation and the fear of penalties that serve as a deterrent to violation. for increasing production and productivity. Industrial discipline is essential for the smooth running of an organisation. second. According to Dr. First. Positive Discipline employs constructive force to secure its compliance. Meaning Webster‟s Dictionary gives three meanings to the world “discipline”. and third.Lesson 6 Employee Discipline Discipline may be defined as an attitude of mind which aims at inculcating restraint. In any industry discipline is a useful tool for developing. it is punishment or chastisement. There are two types of discipline. Positive discipline prevails only where the employees have a high morale. Spiegel. Aims and objectives The main aims and objectives of discipline are: . negative discipline becomes unavoidable. orderly behaviour and respect for and willing obedience to a recognized authority. it is force or fear of force which restraints an individual or a group from doing things which are deemed to be destructive of group objectives. one is positive and the other is negative. “discipline is the force that prompts an individual or a group to observe the rules. it is the training that corrects. moulds. Discipline is a product of culture and environment and a basic part of the management of employee attitudes and behaviour. regulations and procedures which are deemed to be necessary to the attainment of an objective. It is immeasurably more effective and pays a greater role in business management. It is also a punitive or a big stick approach which imposes a penalty or punishment in case of disciplinary violations. and abide by the rules of conduct and standards or work which have been established to ensure the successful attainment of organizational objectives. It is a determinative and positive willingness which prompts individuals and groups to carry out the instructions issued by management. for the maintenance of industrial peace and for the prosperity of the industry and the nation.

individual behaviors etc. Lack or defective grievance procedure. Political influence. To create an atmosphere of respect for human personality and human relations. Principle Of Effective Discipline Disciplinary actions have serious repercussions on the employees and on the industry. just and acceptable . Causes for indiscipline in organizations It is more complex and difficult to identify the causes of indiscipline. are the causes for indiscipline.      To obtain a willing acceptance of the rules. the attitude of the management towards workers. Indiscipline The term „indiscipline‟ generally means the violation of formal or informal rules and regulations in an organisation. regulations and procedures of an organisation so that organizational objectives can be attained. therefore. Hence indiscipline is to be checked by appropriate positive means to maintain industrial peace. the attitude of workers. The policies and procedures of organizations. if unchecked. violet nature etc. Indiscipline. must be based on certain principles in order to be fair. will affect the morale of the organisation. To give and seek direction and responsibility. Character of the workers such as gambling. coordinate and motivate workers. and To impart an element of certainty despite several differences in informal behaviour patterns and other related changes in an organisation. Low wages and poor working conditions. and. drinking. The important causes for indiscipline are:       Ineffective leadership to control. To develop among the employees a spirit of tolerance and a desire to make adjustments. To increase the working efficiency morale of the employees. Lack of timely redressal or workers‟ grievances.

The rules and regulations should be appraised at frequent and regular intervals to ensure that they are appropriate. a line executive). even if it is a rebuke or a warning. A person who has been issued with a stated number of pink slips will be liable to be laid-off or discharged. 2. should be framed in cooperation and collaboration with the representatives of employees for their easy implementation. there should be a definite and precise provision for appeal and review of all disciplinary actions. Employees in a group should be associated in the process of discipline enforcement. depending upon the nature of their offence and past record. as far as possible. Any discrimination or favoritism in this regard is likely to create discontent among the employees. i. 5. In other words. In serious matters. Informal groups are likely to exert social pressures on wrong-doers avoiding the need for negative disciplinary actions. The line executive should issue only verbal and written warnings. sensible and useful. Further. . The rules of discipline.g. It serves as a warning and a learning process and helps to improve future behaviors of the employees in the enterprise. both the blue-collar workers and white-collar employees. should be recorded. The rules must be uniformly enforced for their proper acceptance. Every kind of disciplinary penalty. 3. Pink slips are issued as warning signals to a defaulting employee. 6. They must be applied fairly and impersonally. and no elaborate procedure has to be followed.e. The rules and regulations should be flexible to suit different categories of employees in the organisation. must be properly and carefully communicated to every employee preferably at the time of induction for their easy acceptance.. The responsibility for maintaining employee discipline should be enirusted to a responsible person ( be the employee and their unions. certain principles are to be observed such as: 1. The group as a whole can control an individual works much more effectively than the management can through a process of remote control or by imposing occasional penalties. In some of the American industries they have what is known as the “pink slip system”. all defaulters should be treated alike. Therefore. The rules of discipline embodied in the standing orders. through it is the personnel officer who should be given the responsibility of offering advice and assistance. in any discipline maintenance system. 7. or in the company‟s manual. 4.

Disciplinary actions should be taken in private because its main objectives is to ensure that a wrong behaviour is corrected and not that the wrongdoer is punished. Under group discipline approach. discharge etc. and make it difficult. Similarly. needs. The punishment should be commensurate with the gravity of the offence. If this happens. leadership etc. group as a whole. it would lower his status and authority. 8. training. The management must act without bias and without vindictiveness..which warrant suspension. Approaches to Discipline Enforcement The different approaches to discipline include    Human Relations Approach Human Resources Approach Group Discipline Approach The Leadership Approach and Under human relations approach. If disciplinary actions are taken in the presence of other employees. A punitive actions must satisfy the principle of natural justice. corrective steps are carried out by the management. for him to discipline his subordinates under certain circumstances. An individual is presumed to be innocent until he is proved to be guilty. problems. the employee is considered as „resource‟ as an asset to the organisation. sets the standard of disciplines and punishments for the deviations. 9. Under human resources approach. if not impossible. and its disciplinary actions must be based on justice and fairplay. an immediate supervisor should never be disciplined in the presence of his subordinates. trade unions also act as agencies in maintaining discipline in work situation. behaviors etc. after indentifying the defects. In this approach the employee is helped to correct his deviations. In this approach. the industrial relations departments should be consulted.. goals. This approach analysis the cause of indiscipline from management activities such as defects in selections. . the employee is treated as human being and his acts of indiscipline will be dealt from the view point of human values. motivations. The burden of proof is on the employer and not on the employee. aspirations. it may offend the sense of dignity of the employee and impair his social standing with his colleagues.

The existing machinery for settlement of disputes should be utilized. No deliberate damage should be caused to plant or property. Part – II: To ensure better discipline in industry. Awards and agreements should be speedily implemented. A supplementary document contains the rights of recognized unions and a model grievance procedure.Under the leadership approach. Any agreement which disturbs cordial industrial relations should be avoided. coercion or instigation should not be resorted to. Code of Discipline The Fifteenth Indian Labour Conference discussed the question of discipline in industry and lain down the following general principles:         There should be no lock-out or strike without notice. management and union(s) agree . Part I contains the duties and responsibilities of employees. as defined by the laws and agreements (including bipartite and tripartite agreements arrived at all levels from time to time). in disciplinary cases are dealt on the basis of legislations and court decisions. 1946 to a certain extent. workers and the government in maintaining discipline in industry. There should be no recourse to go-slow tactics. Thus. No unilateral action should be taken in connection with any industrial matter. Part II enlists the common obligations of management and unions. The Industrial Employment (Standing Orders) Act. Part III deals with the obligations of management only. the Code is highly comprehensive and ethical in its approach to the industrial relations system. Annexure-A to the Code embodies the national level agreement on the criteria for the recognition of unions. In additions. while Part IV relates to those of the unions only. Part –I: To maintain discipline in industry (both in public and private sectors) There has to be: (i) a just recognition by employers and workers of the rights and responsibilities of either party. and ii) a proper and willing discharge by either party of its obligation consequent on such recognition. Acts of violence. It has been reproduced below. prescribed the correct procedure that should be followed before awarding punishment to an employee. The Code embodies four parts. intimidation.

and (b) implementation of settlements. they bind themselves to settle all future differences. that affirming their faith in democratic principles. disputes and grievances by mutual negotiation. that they will avoid (a) litigation. that they will promote constructive cooperation between their representatives at all levels and as between workers themselves and abide by the spirit of agreements mutually entered into. and (d) go-show. not to support or encourage nay unfair labour practice such as: (a) interference with the right of employees to enroll or continue as union members. that they will establish upon a mutually agreed basis a Grievance Procedure which will ensure a speedy and full investigation leading to settlement. that they will abide by various stages in the Grievance Procedure and take no arbitrary action which would by-pass this procedure. that neither will have recourse to (a) coercion. and (c) victimization of any employee and abuse of authority in any form. to take prompt actions for (a) settlement of grievance. and (c) lockuts.  . awards. (b) discriminations.    that no unilateral actions should be taken in connection with any industrial matter and that disputes should be settled at appropriate level. that the existing machinery for settlement of disputes should be utilized with the utmost expedition. and that they will educate the management personnel and workers regarding their obligations to each other. restraint or coercion against any employee because of recognized activity of trade unions. that there should be no strike or lock-out without notice. (b) intimidation. decisions and orders. conciliation and voluntary arbitration. (b) sit-down and stay-in-strikes. (c) victimization.       Part-III Management agrees   not to increase work-loads unless agreed upon or settled otherwise.

that their members will not engage or cause other employees to engage in any union activity during working hours.   Part-IV: Union(s) agree    not to encourage any form of physical duress.  to display in conspicuous places in the undertaking the provision of this Code in local language(s). (b) careless operation. and to recognize the unions in accordance with the criteria (Annexure A given below) evolved at the 16th session of the Indian Labour Conference held in May. to discourage unfair labour practices such as: (a) negligence of duty. settlements and decisions. suspension or some other form of disciplinary action and to arrange that all such disciplinary action should be subject to an appeal through normal Grievance Procedure. and to express disapproval and to take appropriate action against office bearers and members for indulging in action against the spirit of this Code. agreements. agreement or practice. to display in conspicuous places in the union offices. not to permit demonstrations which are not peaceful and not to permit rowdyism in demonstration. (d) interference with or disturbance to normal work. 1958. reprimand. The Central Employers‟ and Workers‟ Organizations shall take the following steps against their constituent units guilty of breaches of Code: . unless as provided for by law. the provision of this Code in the local language(s). to take prompt actions to implement awards. and (e) insubordination. (c) damage to property. to take appropriate disciplinary action against its officers and members in cases where enquiries reveal that they were responsible for precipitate action by workers leading to indiscipline.     The Code does not have any legal section but the following moral sanctions are behind it: 1. to distinguish between actions justifying immediate discharge and those where discharge must e preceded by a warning.

With the removal of these provisions from the Code to give them a statutory shape. they developed an attitude of indifference. the Code has had only limited success and was obviously not the answer to the industrial relations problems. On the other hand. to non-members who did not observe the Code. According to the National Commission on Labour. to give notice to the unit to set right the infringement within a specific period. grievance procedure. The Code began to rust and the parties were more eager to take it off. and not to give countenance. to non-members who did not observe the Code.     to ask the unit to explain the infringement of the Code. willful and persistent breaches of the Code by any party should be widely publicized. 2. As regards the future of the Code. however. the impact of the Code was not sustained over a long period of time due to several problems in its application and implementation. A negative approach to discipline relies heavily on punitive measures and in the line with the traditional managerial attitude of “hire and fire” and obedience to orders. Failure to observe the Code would entail derecognition normally for a period of one year-this period may be increased or decreased by the implementing Committee concerned. to warn. A dispute may not ordinarily be referred for adjudication if there is a strike or lockout without proper notice or in breach of the code as determined by an Implementation. 4. in any manner. and the like. 3. culture and attitude towards the employees. and not to give countenance. The spirit of the Code has not been imbibed by the central organisations which were signatories to it. Grave. a constructive approach stress on modifying forbidden behaviour by taking positive . and in case persistent violation of the Code. the Commission was in favour of giving a legal form to its important provisions regarding recognition of unions. the Code will have no useful function to perform. The Code of Discipline worked well at the beginning of its introduction and had a considerable impact on the industrial relations scene. But. unfair labour practices. The approach to managing discipline depends to a great extent upon managerial philosophy. in any manner. Discipline is a two-way traffic and a breach of discipline on the part of either party in industry will cause unrest.

counseling etc. instead of discipline imposed by force or punishment. The concept of positive discipline promotion aims at the generation of a sense of self-discipline and disciplined behaviour in all the human beings in a dynamic organizational setting. . In brief. State the principles of code of discipline. the approach to the disciplinary action in most cases should be corrective rather than punitive.steps like educating. What are the principles of effective discipline? 3.. Review Questions 1. What are the causes of indiscipline? 2.

8.UNIT – IV 7. Workers Participation in Management Collective Bargaining Wage Administration and Industrial Relations . 9.

but where the ultimate power is in the hands of the management”. To quote the version of British Institute of Management.Lesson 7 Workers’ Participation in Management Workers participation in management is in essential ingredient of industrial democracy. he has a legitimate right to have a share in influencing the various aspects of company policy”. “if it gives scope to the workers to influence its decision making process on any level or sphere or if it shares with them some if its managerial prerogatives”. and ties his fate to. Traditionally. “Workers‟ participation in management is the practice in which employees take part in management decisions and it is based on the assumption of commonality of interest between employer and employee in furthering the long term prospects of the enterprise and those working in it”. That way it may also be treated as the process of delegation of authority in the general areas of managerial functions. to some extent. workers participation is based on the fundamental concept that the ordinary worker invest his labour in. price and accomplishment. involved in the process of management decision making. the concept of Workers‟ Participation in Management (WPM) refers to participation of non-managerial employees in the decision-making process of the organisation. “It implies a situation where workers representatives are.S. his place of work and. . Alexander considers a management to be participative. Workers‟ participation in management meets the psychological needs of the workers to a greater extent. it given him the freedom and the opportunity for self-expression. participation in management gives the workers a sense of importance. It provides for the integration of his interest with those of the management and makes him a joint partner in the enterprise”. Clegg says. a feeling of belonging to his place of work and a sense of workmanship and creativity. According to one view. Dr. Walpole. The concept of workers participation in management is based in “Human Relations” approach to management which brought about new set of values to labour and management. According to G. therefore.

The rationale of workers‟ participation in management lies in that it helps in creation amongst the workers a sense of involvement in their organisation. so that the management become “Auto Management”. they show much initiative and accept responsibility substantially. Objectives The scheme has economic. involvement and a feeling of belongingness. a better understanding of their role in the smooth functioning of industry and provides them a means of self-realization. Socially. The ethical objective of participation is to develop workers free personality and to recognize human dignity. The basic idea is to develop self control and self discipline among works.  Its psychological objective of the scheme is to secure full recognition of the workers.   . thereby. Thus the concept workers‟ participation in management encompasses the following:      It provides scope for employees in the decision making of the organisation. The participation is conducted through the mechanism of forums which provide for association of workers representatives. the community and the workers equally invested in it. the share-holders. In should be borne in mid that when individuals are provided with opportunities for expression and share in decision-making. psychological. “it is a mental and emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities in them”. He considers himself to be an indispensable constituent of the organisation. According to Dr. ethical and political objectives. Davis. Davis. Association of worker with management provides him with a sense of importance. The participation includes the willingness to share the responsibility by works as they have a commitment to execute their decisions. The participation may be at the shop level. promoting efficiency and increased productivity. the need for participation arises because modern industry is a social institution with the interest of employer. departmental level or at the top level.According to Dr. “it is a mental and emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities in them”.

Broadly speaking there is following five levels of participation: 1. Information participation: It ensures that employees are able to receive information and express their views pertaining to the matters of general economic importance. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relation to production. Forms of Workers’ Participation in Management The forms of workers participation in management vary from industry to industry and country to country depending upon the political system. The forms of workers participation may be as follows: 1. is called decisive participation. it may be vigorous at lower level and faint at top level. or Auto Management Scheme 4. pattern of management relations and subject or area of participation. The political objective of participation is to develop workers conscious of their democratic rights on their work place and thus bring about industrial democracy. For instance. preferably with alternatives for administration and employees have to select the best from those for implementation. 2. safety and health. Administrative participation: It ensure greater share of works in discharge of managerial functions. Joint Decision Model 3. the only difference is that of degree and nature of application. decision already taken by the management come to employees. Here. 4. However. 5. final decision always rests at the option of management and employees‟ views are only of advisory nature. welfare etc. Joint Consultation Model 2. Workers Representation on Board . 3. Consultative participation: Here works are consulted on the matters of employee welfare such as work. Levels of Participation Workers‟ participation is possible at all levels of management. Associative participation: It is extension of consultative participation as management here is under moral obligation to accept and implement the unanimous decisions of employees. Self Management.

The management scheme. The workers represent their view through „Joint consultative Committees‟. 3.. This form is followed in U. overtime. Workers’ Participation in Management in India Workers participation in management in India was given importance only after independence. The participation of workers may be formal or informal. In the formal participation. Yugoslavia is an example to this model. Safety Committee. The Joint Management Councils were established in 1950 which increased the participation of labour in management. Joint Management Councils. The informal participation may be such as the supervisor consulting the workers for granting leave. it takes the forms of formal structures such as Works Committee. Sweden and Poland. Based on the review and performance of previous schemes a new scheme was formulated in 1983. 1970 gave birth to „Board of Management‟.1. 4.K. Canteen Committee etc. The new scheme of workers participation was applicable to all central public sector enterprises. the two-tire participation model called „Shop Council‟ at the shop level and „Joint Councils‟ at the enterprise level were introduced. which recommended for the setting up of Works Committees. The scheme with equal number of representatives will operate both at shop as well as plant level. The scheme could not make such head way due to lack of union leaders . Where the state industrial units are run by the workers under a scheme called „Self Management or Auto Management Scheme‟. and allotment of worked or transfer of workers from one department to another. the entire control is in the hands of workers. The various functions of participative forum laid down in the scheme could be modified with the consent of parties. Self management of auto management: In this model. Production Committee. the workers elect their representative and send them to the Board to participate in the decision making process. Since July 1975. Industrial Disputes Act of 1947 was the first step in this direction. This form of participation is followed in U. Shop Councils.S.A. except those specifically exempted. 2. and West Germany. Workers’ representation on board: Under this method. Joint decision model: In this form both the workers and management jointly decide and execute the decisions. Joint consultation model: In joint consultation model the management consults with the workers before taking decisions.

wages etc. What do you understand by the concept of workers‟ participation in management? What are its objectives? 2. But in practice. Discuss the concept of workers‟ participation in management in the Indian context. Review Questions 1. For effective and meaningful participation at all levels. . pay scales.g. creating an environment in the organisatoin for coordination of workers and management. Workers have to be educated.consensus of the mode of representation and workers‟ tendency to discuss ultra-vires issues e. 1990. Prior to WPM Bill. The appropriate government may also appoint inspectors to review participation schemes and the bill also has provision of punishment for those who contravene any of the provision of the Act. 1990 all the schemes of participation were non-statutory and concentrated on particular levels. The preventatives of workers are not given due recognition by the management. Thus the workers‟ participation schemes in India provide wide scope for application and upliftment of workers. a bill was introduced in Parliament on 25th May. For electing representatives for participation it also provides for secret ballot. these schemes have not met with success though they are successful in some private sector units. Thus workers‟ participation in management in India has yet to succeed. The attitude of trade unions towards the schemes is negative as they consider these schemes are reducing the power of Trade Unions. The factors responsible for the failure are:   Attitude of the management towards the scheme is not encouraging. Some Trade Unions boycott Joint Management Council meetings. The success these schemes require certain conditions. Trade unions have to cooperate with the schemes. It can be done by educating the workers. The bill provide for effective participation at all level by formulating schemes of participation. What are the different forms of workers‟ participation in management? 3.    Management should appreciate the scheme and accept them in full faith.


Definitions Collective bargaining has different meanings for different individuals or groups. It provides them a collective strength to bargain with employer. which involves proposals and counter-proposals. the negotiations are between the employers and employees without a third party‟s intervention. These problems of an individual or few individuals cannot attract the attention of the employer because of their less bargaining power. The employees put their demands before the employers and the employers also give certain concession to them. fringe benefits etc. It provides a good climate for discussing the problems of workers with their employers. i. The growth of trade union increased the bargaining strength of workers and enables them to bargain for their better conditions collectively. loss incentive etc. low wages. Thus collective bargaining serves to bridge the emotional and physiological gulf between the workers and employers though direct discussions. It also helps the workers to achieve responsible wages. Thus it means collective negotiations between the employer and the employee.e. long hours of work. one or both of whom is a group of persons acting in concert. relating to their work situations. Collective bargaining is a source of solving the problems of employees in the work situation collectively.Lesson 8 Collective Bargaining In the work situation. „collective‟ – which means a „group action‟ through representation and „bargaining‟. Let us now discuss some leading definitions: According to the Encyclopedia of social sciences. an individual worker has to face many problems such as. Meaning The term collective bargaining is made up of two words. It also provides the employers some control over the employees. The success of these negotiations depends upon mutual understanding and give and take principles between the employers and employees. “Collective bargaining is a process of discussion and negotiation between two parties. The process of collective bargaining is bipartite in nature. management and public interpret the term in their own ways. working conditions. working hours. offers and counter-offers. The resulting bargain is an understanding as to the terms and . Thus it ensures that the management cannot take unilateral decision concerning the work ignoring the workers. Trade Unions. means „negotiating‟.

More specifically. on the one hand.conditions which a continuing service is to be performed. Therefore. industrial harmony is not possible. Richardson says.) It is a process that includes efforts from preliminary preparations to the presentation of conflicting view points. It is a practical way to establish an industrial democracy.L. . It is a flexible and dynamic process wherein no party adopt a rigid attitude. taking correct decisions etc. a group of employers or one or more employer‟s organizations. It is a continuous process which can establish regular and stable relationship between worker‟s organisatoin and management. “negotiation about working conditions and terms of employment between an employer. It is a good method of promoting industrial jurisprudence. administrative. It is good form of interdisciplinary system (i. by which employer and a group of employees agree upon the conditions of work”. Importance Whatever labour laws may lay down. ethical and other aspects. collection of necessary facts. it is the approach of employers and trade unions which matters and unless both are enlightened. It is a bipartite process whereas the representatives of workers and management get an opportunity for clear and face to face negotiation.O. understanding of view points. Salient Features         It is a collective process in which representatives of employers and employees participate mutually. “Collective bargaining takes place when a number of work people enter into negotiation as a bargaining unit with an employer or a group of employers with the object of reaching agreement on conditions of the employment of the work people”. workers manual defines collective bargaining as. a function embodying economic psychological. and one or more representative workers organisation on the other with a view of reaching an agreement.e. the solution to common problems can be found directly through negotiation between both parties and in this context the scope of collective bargaining is very great. collective bargaining is a procedure. The I.

if property conducted. result in the establishment of a harmonious industrial climate which helps for the socioeconomic development of the nation. Employers have also retained high power and dignity through collective bargaining. Wage earners have enhanced their social and economic position in relation to other groups. If it works well. collective bargaining opens u the channel of communication between top and bottom levels of an organization. Butler has viewed the functions as:    a process of social change a peace treaty between two parties a system of industrial jurisprudence Collective bargaining as a process of social change Collective bargaining enhances the status of the working class in the society. Collective bargaining restricts management‟s freedom for arbitrary action and thereby management learns a new code of behaviour by conceiving of the union as a method of dealing with employees. collective bargaining. From the point of the view of the society. Functions Prof. The management also comes to know the grievances of workers in advance and it gives an opportunity to take precautionary measure. Collective bargaining as a peace treaty Collective bargaining serves as a peace treat between the employers and employees. It is a method of introducing civil rights into industry. Moreover. It builds up a system of industrial jurisprudence by introducing civil rights in industry and ensures that management is conduct by rules rather than by a arbitrary decisions.Collective bargaining is really beneficial forms the stand part of employees and their unions as well as management. Collective bargaining as an industrial jurisprudence Collective bargaining creates a system of “Industrial Jurisprudence”. It extends the democratic principles from the political to industrial field. it develops a sense of self-responsibility and self-respect among the employees concerned and thus significantly paves the way for improved employee morale and productivity. However the settlement between the two parties is a compromise. It establishes rules which define and restrict the .

the labour should be given due consideration – in wage fixation. Both the management and union should analyze the alternatives to arrive at the best solution. These principles are to be followed by the employers and unions. This will develop mutual understanding of a problem which is more important for arriving at the solutions. Collective bargaining process should give due consideration to hear the problems on both sides. Collective bargaining required effective leadership on both sides. Arnold. In collective bargaining both the union and management should observe the laws and regulations in practice in arriving at a solution. 7. Both the union and management must have good faith and confidence in discussion and arriving at a solution. Principles of Collective Bargaining The success of collective bargaining is based on certain principles. Promoting stability and prosperity of the industry.traditional authority exercised by employers over their employees placing part of the authority under joint control of union and management. There must be mutual respect on both the parties. In addition to the above. For both union and management 1. 4. on the union side and management side to moderate discussions and create confidence. bonus etc. Improving working conditions and fair wages. its functions include:      Increasing the economic strength to employers and employers. F. Campo has laid down certain principles for union and management. Prof. For management . The management should respect the unions and the unions should recognize the importance of management. in working conditions. 5. 2. 6. Maintaining peace in industry Prompt and fair redressel of grievances. 3. for management and for union. In all negotiations.

If there are more than one union. The recognitions of a trade union to represent the problems is more essential. 4.1. For unions 1. 2. Settlements by parties: In this case settlements are arrived at by parties themselves without the interference of a third party. Management should think of realistic principles and policies for labour regulations. Settlements under industrial disputes act: According to this. negotiations are carried out by officers according to the Industrial Disputes Act. and cooperation in collective bargaining rather than an indifferent attitude towards the union. only as a last measure. Unions have to consider the benefits to all workers rather than a section of workers. . Managements need not wait for trade union to represent their grievances for settlement. the management can recognize on which is having the support of majority of workers. 3. Strike lock-outs should be resorted to. 5. Management should follow a policy of goodwill. Forms of Collective Bargaining The forms of collective bargaining differ from country to country and time to time in India. Managements should give due consideration to social and economic conditions of workers in collective bargaining. 2. Later these are submitted to the labour courts. The enforcement of these agreements depends upon the goodwill and cooperation of the parties. Unions should avoid undemocratic practices. 3. Direct negotiation: In this agreements are arrived at by both the parties after direct negation. Consent awards: Here the agreements are negotiated by the parties on a voluntary basis when disputes are subjudiced. As far as possible they have to be avoided by compromise and discussion. Unions have to recognize their duties to the management also before emphasizing their demands. 3. 4. 4. Collective bargaining takes the following forms: 1. 2. Management can voluntarily take measures to settle the grievances.

safety and health etc. transfers. Problems relating to security of trade unions. National level bargaining In this. increased prices and the legislations.   Nature.On the basis of the level (in which collective bargaining takes place) it can be classified as: 1. . promotions. The Institute of Personal Management includes the following in a collective agreement. scope. It takes place in the particular unit between the management and the trade unions of that unit. definition and purpose of agreement. Industry level bargaining 3. Prof. are included in the collective bargaining. the representatives of trade unions and employers at the national level will negotiate. Plant level bargaining 2. National level bargaining Plant level bargaining It is the micro level bargaining. Industry level bargaining Several unions of the same industry form and association and negotiate with the employers. wages. holidays and leave with wages. The Contents of Collective Bargaining Agreements The scope of collective bargaining has increased during the recent years. hours and conditions or work. increased response by the managements. Rights and responsibilities of management and trade unions. increased response by the managements. Randle observes that the increase in the scope of collective bargaining is due to the growth of trade unions.

    Wages. contract agreements. Both the management and unions will take considerable time to the preparation and negotiation. retirements benefits and other benefits and terms and conditions of service. The company will collect such information its internal sources – such as balance sheet. the cost of living. They collect the required data relating to large number of issues such as wage. Negotiation Stage At the negotiation stage certain proposals are put forward for mutual agreement after careful consideration. and (ii) the contract administration. The personal department prepares a personal. the policies of trade unions and management. and A termination clause Thus collective bargaining includes not only the negotiation of wages. salary. reports etc. nature of agreement in other companies etc. Govt. labour welfare and organizational matters. disputes. The trade union also collects such data from their own central organisation. but also working condition. seniority. production norms. overtime allowance. leave. The negotiation stage consists of three steps. . which includes –  Specific proposals of the company including the objectives of negotiation. Grievance redressal procedure. market research reports. Methods and machinery for the settlements of possible future. research staff from various Department etc. bonus.    Preparation for negotiation Negotiation procedure Follow up action Preparation for negotiation First the union will submit their fresh contract to the management before the expiry of existing contract (usually 30 to 60 days before the expiry). Process of Collective Bargaining The process of collective bargaining consists of two stages. (i) the negotiation state.

the agreement is printed and circulated among all the employees. “if anything is more important to industrial relations than the contract itself. demands acceptable after negotiation. Follow-up action At this stage. For example. demands which cannot be accepted.  Estimating the cost of implementing the proposals. As observed by Profs. a demand for wage increase by the union. Campo has laid down the following general principles for administering the contact effectively. Classifying the demands as demands acceptable before negotiation. Prof. The demands are classified as demands which need bargaining and demands which may be rejected. During negotiations. Proper procedure should be adopted for the redressal of grievances by providing opportunity to exchange views.  Cooperation between both the parties is essential. Contract Administration Agreement will be useful if they are executed properly. Such proposals are based on company‟s commitment to shareholders. it is the administration of the contract”. Both parties should have a “bargaining cushion”. The committee consists of three to six members. The unions is represented by the leaders and centrals leaders. and make counter proposals. The supervisors will be enlightened about the agreements for their effective implementation. Illiamson and Harries. workers and public. may be accompanied by a counter proposal for increase in production by the management. normally the easier demands are taken up first.   . A rigid or irrevocable stance should always be avoided. consumers. a negotiation committee is to be formed by both the parties. the grievance should be referred to arbitration. Such negotiations go on till the “point of no return” is being reached. When a conference over the redressal of grievance reaches an impasse. Both the parties should have a tolerant attitude towards each other and have a spirit of accommodation and goodwill. From the management side the representative include the chief executives. Negotiation technique or procedure In this step.

‘Home Work’ on demands The union and management have to collect relevant data relating wages. The team should be headed by an appropriate person with adequate authority to take decisions. company‟s image etc. Importance to output Trade unions should also give importance to output. welfare schemes. in addition to their wages. Pre-requisite for Successful Collective Bargaining Collective bargaining will be more effective under the following conditions: Negotiating team Negotiating team should represent all groups including production. working conditions etc. Routine problems The management and unions have to identify the grievances on routine basis and take appropriate action then and there. bonus.. Mutual understanding encourages mutual agreement. Strikes/ lockouts Strikes and lockouts should be resorted to as last measure. quality of the products. Internal union democracy Trade unions should encourage internal union democracy by consulting the rank and file members. . finance and industrial relations experts. Recognition of unions The management should recognize the trade union and analyze the facts in their representation of grievances. both the union and management should conduct periodic discussions to avoid strikes and lockouts. cost of benefits. Both the parties should honour the commitment. conditions of work. Before taking any decision. Open mind Both the management and union should have open minds to listen and appreciate each others point of view with flexibility and adjustment.

incentive schemes and job evaluation etc. standing orders. The scope is widening. . Some industry level agreements were also concluded in textile industries in Bombay and Ahemadabad. If used properly it can solve the problems of both the parties. It also serves as tool of communication of views by both management and works. ports and docks and banks. in many instances these4 limits are circumvented by the management by making gentleman‟s promises with the unions on several issues outside the written agreement and implementing these promises over a period through administrative and union through mutual confidence.Collective bargaining has gradually been taking roots in Indian soil. shows that out of 109 agreements 96 were relating towages. in steel industry. collective bargaining is done at the national level for the industry as a whole.F. This is in sharp contrast to a private sector unit where its wages and fringe benefits are more geared to its specific requirements and circumstances. Most of the agreements were relating to wages. bonus. In core industries like steel. Collective bargaining in central public sector undertakings Collective bargaining in central public sector undertakings is done according to the guidelines issued by the Departments of Public Enterprises (earlier known as the Bureau of Public Enterprises).I. one main collective agreement is entered into by the National Joint Consultative Forum on behalf of all private and public sector steel units with other unions. This department gives the content and limits of financial commitments which a public enterpriser can make with the union during the course of bargaining. In the long-run it will serve as an instrument for labour participation in management and pave way for he cordial industrial relations in India. In a study conducted by E. The number of agreement has been increasing. It includes matters relating to productivity. Collective bargaining is also used as a tool for bringing coordination between workers and managements. modernization. thorough mutual understanding. Thus. However. voluntary arbitration. Most of the collective bargaining agreements were concluded at plant level. Thus collective bargaining is an important method of solving problems. This is followed by several supplementary agreements being entered into at the plant level to cover aspects not resulted in creating uniform wage structures and fringe benefit patterns in all public sector units irrespective of the nature of industry (labour or capital intensive) and the paying capacity of a unit as determined by its financial performance.

Review Questions 1. Enumerate the principles of collective bargaining. 3. What are the pre-requisites for successful collective bargaining? . What do you understand by “collective bargaining”? What is its scope? 2.

A wage policy may be viewed from three different angels. The government and the community at large are also vitally concerned with the problem because of a large number of industrial disputes center round the questions of wages and allowances. Wage Policy The term „wage policy‟ refers to legislation or government action undertaken to regulate the level or structure of wages. the establishing of fair standards.Lesson 9 Wage Administration and Industrial Relation Wage is remuneration to labour for the work done or he service rendered by it to the employees. the profits passed on to the shareholders. a choice has to be made”. the problem is that of resolving the conflict between the objectives of an immediate rise in the standard of living of workers. The concerned parties. Wage payment if the most vital and important problem that an industrial workers is confronted with It is also one of the most difficult areas in our present industrial relations system. Therefore. At the macro economic level. It cannot also be considered in isolation from the larger economic and social background prevailing in the country. When the social and economic implication of measures of wage-policy conflict. Wage administration is also important to the employer as it constitutes one of the principal 8items that enter into the cost of production of his product. The social objectives of wage policy may aim at eliminating the exceptionally low wages. A delicate balance has to be struck between wages paid to the workers. and the services rendered to the community. measures inspired by social considerations inevitably have economic effects and action designed to achieve specific economic results has social implications. determine his standard of living and that of his family. At the semi-aggregative level. However the problem of wage fixation in a modern democratic society is by for the most difficult of all employer-employee relationship. or both for the purpose of achieving specific objectives of social and economic policy. the employers. evolution of a suitable wage structure and wage fixing machinery is important for the prosperity of industry. and for the economic development of the country. for the well-being of labour. the level of productivity. the protection of wage earners from the impact of inflationary tendencies. The wages constitute the earning for the workmen. They also determine the standard of his efficiency and consequently. “The social and economic aspects of wage policy are normally inter-related. the works and the consumers have seemingly conflicting interests. in turn. namely. the problem is that of evolving a wage structure which is . and at increasing the economic welfare of the community as a whole. which. additional employment and capital formation.

To obtain for the workers a just share in the fruits of economic development. the objectives of a national wage policy may be stated thus:       To provide minimum wages to workers employed in sweated industries To fix wage ceilings To improve the existing wage-structure To control inflationary tendencies To accelerate export promotion and Other objectives. “The protection of workers against exploitation or unduly low wages remains wager policy‟s major pre-occupation for the under-developed areas”. The fixing of minimum .   In India. systems of payment by results. where labourers are exploited in the sweated industries.conducive to economic development. Provision of minimum wages in sweated industries In a country like India. accompanied by separate measures to promote the growth of trade unions and collective bargaining. and To bring about a more efficient allocation and utilization of manpower through wage differentials and where appropriate. the problem is that of a system which provides incentives to increasing productivity and improving the quality of workers. supplemented by appropriate measures to keep workers‟ expenditure on consumption goods in step with available supplies so as to minimize inflationary pressure. Objectives of a Wage Policy The ILO publication has enumerated the following objectives of a wage policy in developing countries:   To abolish malpractices and abuses in wage payment. To set minimum wages for workers whose bargaining position is weak because they are unorganized or inefficiently organized. the basic need is to provide for “safety net” wages to prevent its exploitation. According to Turner. At the plant level.

partly to smooth the flow of labour from the farm to expanding modern industries. According to Clark Kerr. foreign exchange need be earned by promoting exports through increased . The workers should get a just share in the fruits of economic development and increased productivity. aim at stabilizing prices by tying wage increases to productivity. “improving worker efficiency and performance. technical know-how. Control over inflationary tendencies Controlling inflationary pressures should be an essential element of wage policy. therefore. encouraging the acquisition of skills and providing and incentive of labour mobility should be the real purpose of a wage policy in a developing economy”.wage is also necessary to boost up industrial employment. experience. Fixation of wage ceilings Ceilings on wages need be fixed to save employees from the pinch of inflationary tendency that follow from uncontrolled price movement. The wage policy should. responsibility. the wage policy should aim at a minimum wage in sweated occupation as well as a floor for entry to industrial employment. mental and physical effort and hazards should be paid more than those having lower requirement. for increasing prices erode workers‟ real income and lower down their standard of living and ultimately cause industrial unrest. Productivity and efficiency can be boosted by giving incentives to them and by improving the investment capacity of industries by plaughing back a part of the profit in the industry. Improvement in existing wage structure Desirable or rational wage structure facilitates the acquisition of productive skills. Thus. Acceleration of export promotion To get imports of essential capital goods. trained manpower and raw materials. training. and encourages the allocation of labour to the expanding sectors of economy in which labour is in great demand. The jobs which demand a higher degree of skill. Justice and fairness demand that a sound relationship should exist between rates of ay for different groups in similar occupations. and partly to cover the differentials in wage rates so that wages paid to employees doing identical work are rationalized. serves as an incentive to higher productivity and wage income.

A wage policy should help to accelerate a nations‟ development process. wages are fixed and revised under the Minimum Wages Act. But for other industrial workers. it may be said that “the protection of workers against exploitation or unduly low wags. Thus. To develop the skill of newly recruited industrial labour and other manpower resources. adjudication.” It may be observed that no serious attempt has so far been made at the level. providing and incentive to labour mobility. encouraging acquisition of strikes. Wage Board . stabilizing prices and acceleration of the nation‟s development process should be the real purpose and the need for a national wage policy. Wage Regulation Machinery In unorganized industries. “ A national wage policy must aim at establishing wages at the highest possible level. These are settlements in conciliation of wage disputes. and there does not appear to be a formally proclaimed wage policy in India. which cannot be achieved only through statutory measures and ban on strikes and lockouts and compulsory arbitration To provide guidance to various authorities charged with the task of wage fixation and revision. To maintain industrial peace. 1948. bipartite wage revision committees in several industries. and arbitration. for formulating a national wage policy. collective bargaining at the plant level. which the economic conditions of the country as a whole resulting from economic development”. Giri has said. they are fixed by several well-established procedures or practices available for wage-fixation and wage revision. Lately. as provided by the Directive Principles of the State Policy in the Constitution. improving workers‟ efficiency and performance. Wage Boards have also been created. Other objectives  To bring social justice to workers and equal opportunities of personal development through the development of socialistic pattern of society.    Dr.productivity of exportable goods and price stability or price reduction wherever possible.

supervisory etc. However. consisting of equal representative of employers and workers and an independent chairman will probably ensure more acceptable decisions. Such wage boards should be instituted for individual industries in different areas”. clerical. management and the public. having representation of the employers and labour besides. Generally. But no action was taken during that Plan period.Wage Board is a tripartite body. This recommendation was subsequently reiterated by the 15th Indian Labour Conference in 1957 and various Industrial Committees.) are to be brought within the scope of the wage fixation. The Wage Boards are required to:  determine which categories of employees (manual. But the parties were not satisfied with this system. hours of work. regional wage differentials. They function industry-wise with broad terms fo reference. therefore. . the labor and management representatives are selected from the particular industry being investigated. It observed. the Second Plan emphasized the need to determine wages through industrial wage boards. These boards are chaired by governmentnominated members representing the public. as a rule. An authority like a tripartite Wage Board. Labour and management representatives are maintained in equal numbers by the government. tripartite representing the interests of labor. The Government decision to set up the first wage board in cotton textile and sugar industries in 1957 was also influence by the Report of the ILO‟s expert. gratuity. The idea of setting up of tripartite Wage Boards was. which include recommending the minimum wage. mooted and endorsed in the First Plan. It is an important machinery of State regulation of wages. with consultation and consent of the major central organizations. differential cost of living compensation. The representatives of the former two interests are nominated by their central organisatoins. A more acceptable machinery for settling wage disputes will be one which gives he parties themselves a more responsible role in reaching decisions. the Industrial Disputes Act was enacted under which disputed regarding wages could be settled through adjudication. “the existing machinery for settlement of wage disputes has not given full satisfaction to the parties concerned. others are nominated by the Government. independent members. Composition and functions of wage board The composition of wage boards is. Growth and development After independence. etc.

In future the wages board should function essentially as a machinery for collective bargaining and should strive for unity. Evaluation of wage boards The Committee set up by the National Commission on Labour identified three major problems from which the wage boards suffer:       Majority of the recommendations of wage boards are not unanimous. the system of payment by results. Wage boards should be assisted by technical assessors and experts. . hours of work ( rubber plantation industry). In addition to these common items. The Committee made some important recommendations as below: The Chairman of the wage board should be selected by common consent of the organisation of employees and employees in the industry concerned. Thus. limestone and dolomite mining industries and the second wage board on cotton textile industry. to work out the principles that should govern of bonus to workers in respective industries. tea and coffee plantation. sugar and jute industries). jute. demands in respect of payments other than wages (wage boards of jute and iron and steel industry). wage boards have to deal with a large range of subjects of which the fixation of wage-scales on an industry-wise basis constitutes the biggest of all the issues before them. some wage boards may also be asked to deal with the question of “bonus” (like that of the wage boards for cement. interim relief (like that of the wage boards for jute industry and port and dock workers). Some wage boards (like that of the wage boards for sugar. limestone and dolomite mining industries) have been required to take into account the „special features of the industry‟. gratuity (like that of the wage boards for the iron ore mining.   to work out a wage structure based on principles of fair wages as formulated by the Committee on Fair Wages. iron ore. The time taken by the wage boards to complete their task has been rather unduly long. and Implementation of the recommendations of the wage boards has been difficult. rubber.

a permanent machinery should be created for follow-up action. A central wage board should be set up in the Union Ministry of Labour on a permanent basis to serve all wage boards through the supply of statistical and other material and lending of the necessary staff. the boards have functioned with responsibility and restraint and their recommendations have not undermined the efficiency of the industry. more acceptable agreements on wages and other conditions of employment of industrial peace. Wage boards should not be set up under any statues. after which need for a subsequent wage boards should be considered on merit. However. but their recommendations as finally accepted by the Government should be made statutorily binding in the parties. Furthermore. and have been willing to accept changes to make it more efficient and productive. and Wage-boards should complete their work in one year‟s time and the operation of the recommendation of a wage board should be between two or three years. It has succeeded in promoting industry-wise negotiations.  Terms of reference of wage boards should be decided by Government in consultation with the organisation of employers and the workers concerned. Review Questions . as contrasted to enterprise-level decisions under adjudications. Unanimous recommendations of wage boards should be accepted and in case of non-unanimous recommendations. For Industries covered by wage boards. in addition to encouraging greater participation by the parties and freedom in decision-making.     In these recommendations are accepted. The institution of wage boards has come to be widely accepted in India as a viable wage determination mechanism. delays involved in actual working of the boards and imperfect implementation of the reconditions has been often the cause of anxiety. the working of wage boards may be made more effective. Both unions and employers‟ organizations have supported it from its very inception. government should hold consultations with the organisation of employers and employees before taking a final decision. but these can be reduce considerably if collection and tabulation of basic information and relevant data on wage fixation is done on a running and continuing basis in respect of all major industries/ employments.

1. What are wage boards? What are its functions? . What is a wage policy? What are its objectives? 2.

Employee Communication 11. Worker’s Education and Training .UNIT –V 10.

all their acts. The origin of the word “communication” lies in the Latin word “communis” denoting “common”. .Lesson 10 Employee Communication More effective human relations is engendered through adequate communication. cooperation and job satisfaction. Communication is vital in the relationship between executive and their subordinates. Therefore communication is concerned with imparting a common idea or understanding and covers any type of behaviour resulting in an exchange of meaning. some of the purposes of communication are:    To discourage the spread of misinformation. orders and procedures must pass through some kind of communication channel. effective communications requires an appreciation of its meaning and objectives as well as of the barriers which effective communication. Since managers work with and through other people. policies. Also there must be channel of communication for feedback. reports. Objectives of Communication Management depends upon communications to achieve organizational objectives. conversations and rumours. ambiguity and rumors. rules. Accordingly. Whilst the tradionalists viewed the communication purpose as providing the means whereby a plan can be implemented and action coordinated towards the common goal or end result. which can cause conflict and tension. Therefore to be effective. To foster any attitude which is necessary for motivation. the behaviouralists looked upon it as a means whereby persons in the organisatoin can be motivated to execute such plans enthusiastically and willingly. every executive must know how to communicate. Whatever viewpoint is accepted. It is through effective communication that an executive ultimately gets work done by others. To develop information and understanding among all workers and this is necessary for group effort. An executive‟s working day is filled with communication of different types like orders.

In the simplest kind of communication.    To prepare workers for a change in methods of environments by giving them necessary information in advance. People need to know where they are heading and why. . Thus. Communication also allows people to express their emotions. To improve labour-management relations by keeping the communications channels open and accessible. On any given day. peers and other outside the organisation. Communications of feelings can be very important to employee morale and productivity. or co-ordinate action. Communication allows people to co-ordinate by providing them with a way to share information. This would satisfy the basic human need for a sense of belonging and friendship. sub-ordinates. To encourage subordinates to supply ideas and suggestions for improving upon the product or work environment and taking these suggestions seriously. Communication transforms a group of unrelated individuals into a term that knows what its goals are and how it will try to reach them. down and across the levels of the organization‟s hierarchy. To encourage social relations among workers by encouraging intercommunication. Employees who feel that they cannot vent their anger or express their joy on the job may feel frustrated and repressed. Importance of Communication Inter-personal roles require managers to interact with supervisors. both the sender and the receiver perform the encoding and decoding functions automatically. Communication is especially important for the task of decision-making. Communication Process The following figure presents a general way to view the communication process – as a loop between the source and the receiver. communication is necessary. communication is necessary to implement the decision and to evaluate its results. Once a decision has been made. a manager may communicate for all the purposes described above. The first type of information that needs to be shared is what the goals of the organisatoins are. Decision-makes must share their views on what the problem is and what the alternatives are. Communication goes up. They also need directions for their specific tasks.

graphs etc. opinion or other information-to someone else. pictures. most communication involves a combination of these. Transmission . facial expressions. Encoding The second step is to encode the message into a form appropriate to the situation.Sending Encoding Transmission (through channels) Decoding Sources Sender Noise Receiver Decoding Transmission Encoding Source/sender The communication cycle begins when one (called the sender) wants to transport meaning-a fact. for instance. A manager. The encoding process is influenced by the content of the message. The encoding might take the form of words. Indeed. idea. the familiarity of the sender and receiver and other situational factors. might call the research departments to send to the latest information on a particular market. and physical actions and symbols like numbers. gestures.

Often the methods are combined. Even when you are just reading a letter. Common channels or media in organizations include face-to-face communication (using the media of sound waves. Considerations that effect the choice of method include the audience (whether it is physically present). it can be a disruption such as disturbance in a telephone line. or an individual acting on behalf of a group. your experience with the letter-writer and so on. and the cost of transmission. which is called „feedback‟. but it can also quite complex. communication has broken down (communication gap) and misunderstanding is likely to follow. If the intended message and the received message differ a great deal. Methods of Communication There are mainly three primary methods of communicating in organizations. written. and reports etc. a group. Decoding The person to whom the message in sent the receiver) interprets the meaning of the message through the process of decoding. oral. you may need to use all your knowledge of the language. it might be something that keeps the receiver from paying close attention such as someone coughing.). The receiver may ignore it. the nature of the message (its urgency or secrecy). it is transmitted through the appropriate channel or medium. Receiver The receiver can be an individual. Other people talking closely. This process may be simple and automatic. weak hunger or minor ailments which may affect the message. noise takes on a meaning slightly different from its usual one. light etc. decide not to try to decode or understand it or respond immediately.. Thus.After the message has been encoded. The figure given below shows various forms each method can take . Noise refers to any type of disturbance that reduces the clearness of the message being transmitted. The communication cycle continues when the receiver responds by the same steps back to the original sender. i. (The channel by which an encoded message is being transmitted to you at this moment is the printer page). a car driving by etc. Noise In the communication process. The sender has generally little control over how the receiver will deal with the message. letters.e. and non-verbal.

policy and procedures manuals inform them to work-related problems. generally someone outside the organisatoin.Methods of communication in organizations Written Letters Memos Reports Manuals Forms Oral Information Conversations Task-related exchange Group Discussions Formal Speeches Non-Verbal Human Elements: Facial expressions Body language Environmental Elements: Office design Building architecture Typically organisations produce a great deal of written communication of many kinds. They tend to deal with a single topic and are more impersonal. Instructions manuals tell employees how to operate machines. manuals and forms. Other common forms of written communication include reports. Probably the most common form of written communication in organisatoins is the office memorandum. Memos usually are addressed to a person or group inside the organisatoin. Manuals have various functions in organizations. but less formal than letters. A letter is a formal means of communicating with an individual. Reports generally summarize the progress or results of a project and often provide information to be used in decisionmaking. Forms are standardized documents on which to report . or memo.

It is most effective for leaders to address the followers via public address system or audio-visual media. pitch. since faith. but also observes the physical gestures associated with it as well as changes in tone. Oral Communication Oral communication. As such. It conveys a personal warmth and friendliness and it develops a sense of belonging because of these personalized contracts. . also known as face-to-face communication is the most prevalent form of organizational. Because the message is conveyed instantaneously. speed and volume of the spoken word. so that if the receiver is unsure of the message. red tape and other formalities. time saving and least expensive form of communication. It may be in the form of direct talk and conversation between the speakers and listeners when they are physically present at one place or through telephone or intercom system conversation. beliefs and feelings. if necessary. The human voice can impart the message much more forcefully and effectively than the written words is an effective way of changing attitudes. then oral communication may include public address system. it helps in avoiding delays. rapid feedback allows for early detection by the sender so that corrections can be immediately made.   Disadvantages   There is not formal record of communication so that any misunderstood message cannot be referred back to what was actually said. If the verbal message is passed on long the hierarchical chain of command. Informal rumour mill or grapevine are also popular form of oral communication. Oral communication is particularly powerful because the receiver not only hears the content of the message. trust and sincerity can be better judged in a face-to-face conversation rather than in written words. Advantages Some of the advantages of oral communication are:   It is direct. then some distortions can occur during the process. A performance appraisal form is an example.information. Where one-way communication is required. The more people the message must pass through. the greater the potential distortion. they represent attempts to make communication more efficient and information more accessible. It allows for feedback and spontaneous thinking.

The receiver may receive the message in his own perception and thus misunderstand the intent of the message. It provides a permanency of record for future references. Spontaneous responses may not be carefully though about. letters. The message can be stored for an indefinite period of time. It also ensures that every one has the same information. logical and clear. formal reports. It is most effective when it is required to communicate information that requires actions in the future and also in situations where communication is that of general informational nature. . It can save time when many persons must be contacted at the same time. The written communications are more likely to be well considered. Advantages    It serves as evidence of events and proceedings. policy manuals. tone of voice and facial expressions.    Disadvantages   It can be very time-consuming. rules and regulations.     Lengthy and distant communication cannot be effectively conveyed verbally. There is no immediate feedback opportunity to be sure that the receiver has understood the message. It reduces the likelihood of misunderstanding and misinterpretation. specially for lengthy reports. The spirit of authority cannot be transmitted effectively in verbal transactions. These areas have to be covered in writing for efficient functioning of the organisation. information bulletins and so on. It appears formal and authoritative for action. More or less or a different meaning might be conveyed by manner of speaking. memos. It is more reliable for transmitting lengthy statistical data. And the message can be checked for accuracy before it is transmitted. Written Communication A written communication is put in writing and is generally in the form of instructions.

a small metal desk on a corner communicates the . shyness. Our facial expressions can show anger. A handshake is probably the most common form of body language and tells a lot about a person‟s disposition. frustration. a large office with plush carpeting and expensive furniture conveys a message of status. wink an eye for mischief or intimacy. Non-verbal communication Some of the meaningful communication is conveyed through non-verbal ways. According to Tipkins and McCarter. Other examples of body language are tilting of head. and Anger-rage Physical movements or body language is known as “kinesics”. some of the environmental elements such as building and office space can convey a message about the authority of the person. On the other hand. fear and other characteristics that can never be adequately communicated through written word or through oral communication itself. These non-verbal expressions include facial expressions and physical movement. Some of the other body language symptoms are shrugging our shoulders for indifference. It leads to excessive formality in personal relations. power and prestige such as that of a chief operating officer. facial expressions can be categorised as:         Interest-excitement Enjoyment-joy Surprise-startle Distress-anguish Fear-terror Shame-humiliation Contempt-disgust. As for us environmental elements are concerned.  Confidential written material may leak out before time. arrogance. Even some of the verbal messages are strengthened or diluted by non-verbal expressions. In addition. causing disruption in its effectiveness. folding of arms or sitting position in a chair. tap our fingers on the table for impatience and we slap our forehead for forgetfulness.

status of a low ranking officer in the organizational setting. Communication networks A communication network is the pattern of information exchange used by the members of a group. Communication networks Subordinate Senior Manager Subordinate Manager Subordinate Manager Subordinate WHEEL Assistant Manager Management Trainee CHAIN CIRCLE . Accordingly non-verbal actions have considerable impact on the quality of communication.

. Informal groups that lack a formal leader often form an all-channel network – that everyone communicates with everyone else. The ease with which members can communicate with others I measured by members‟ relative freedom to use different paths to communicate. a chain network is likely. The distance between members describes how far a message must travel to reach the receiver. The density of the communication refers to the total quantity of communication among members. Members or a task-force or committee often develop a circle network of communication with each person communicating directly to the other members of the task-force. a wheel network develops. When the members of a group are on different levels of the organization‟s hierarchy.When the members of a group communicate mostly with the group leader.

all channel network will arise. trusted employee may not interfere with the process. Group performance factors: The group performance factors like group‟s size. Individuals can send and receive messages across whole organizational levels and departments by means of vertical communication or the information communication network. The communication typically takes place between manages and their superiors and sub-ordinates. Non-verbal communication is also important and can be part of interpersonal. Forms of Organizational Communication Although interpersonal and group forms of communication pertains even at the broadest organizational levels. the manger may need to take action. the manager may encourage silent group members to seek in order to get the desired decisions. they do not sufficiently describe the paths of all message transmitted in organizations. 3.Members‟ commitment to the group‟s work is defined by the centrality of the position of the members. if members always sit around a table. For instance. Type of task: If the task of the group is simple – a chain or wheel network will probably arise. it is much easier to have an all-channel network in a group of eight than in a group of eighty. If an assertive but irresponsible employee becomes the hub of such a wheel. composition. as messages travel a long distance to their receives. For instance. a group with high density and distance can expect a lot of noise distortion in its communications. then circle network will arise. 2. The following factors influence the formation of communication patterns within small groups: 1. group and organizational communication. If the manager relies on a group to help make decision. All these provide insight into possible communication problems. Vertical communication Vertical communication is communication that follows both up and down the organizational hierarchy. The environment: The environment including the group‟s seating arrangement and meeting place also affects communication patterns. For instance. For hand task. Managers must make use of all these characteristics and tendencies to help groups communicate and work most efficiently. A manager who sees that a wheel network is forming around and experienced. norms and cohesiveness also affect the formation of communication networks. Upward communication .

is done through circulars and notice put up on the notice boards. manages may need to intervene. magazines such as Telco News. They may also issues a clearly worded . the communication is not simply the flow of information. The content of gossip is likely to the personal information or the information about the organisation itself. suggestions or complaints and information the sub-ordinate thinks is of importance to the superior. performance feedback and information that the superior thinks is of value to the sub-ordinate. In the transactional process. the grapevine in an organisation may be carrying harmful information. In addition. The content of upward communication usually includes requests. The content of downward communication often includes directives. Informal Communication Another term for informal communication network is the grapevine informal networks are found in all organizations. it should be “transactional” communication which is mutual and reciprocal because. at TELCO. “ all persons are engaged in sending encoding” and receiving (decoding) messages simultaneously.Upward Communication consists of messages moving up the hierarchy from subordinates to superiors. They can gold open meetings and objectively discuss the issues that are being informally discussed already. It is in the form of gossip in which personal spreads a message to as many others as possible who may either keep the information to themselves or pass it on to others. but it develops a personal linkage between the superior and the subordinate. with a view to facilitate expeditious and simultaneous communicate to the workers on their jobs. the Worker is provided with a public address system. For example. Transactional communication Wenburg and Wilmont suggest that instead of communication being “upward” or “downward” which is inter-communication. When these kinds of rumours are being spread. Downward communication Downward Communication consists of messages moving down the hierarchy from superiors to sub-ordinates. Managers should have some control over the informal network. false information or politically motivated information. Dissemination of information is regard to such maters as procedural change and company‟s policies on transfers. promotion etc. assignments. Each person is constantly sharing in the encoding and decoding process and each person is affecting the other”. Telco Flashes and Telco Ek Samuday provide details with regard to the company‟s activities in different spheres. For example.

The term is derived from noise or static effects in telephone conversation or radio wage transmission. Inappropriate channel Poor choice of channel communication can also be contributory to the misunderstanding of the message. Hence the manager must know when to communicate. there are personal factors which affect communication. dealers and any one else involved tithe company in any way. This will give managers new ideas and a better feel for the entire company. A message must be sent at an appropriate time to avoid these problems. customers. Some of the organizational barriers and some of the interpersonal barriers to effective communication are discussed below: Noise Barriers Noise in any external factor which. In addition. Barriers to Communication The communication must be interpreted and understood in the same manner as it was meant to be sent by the sender. Managers can also obtain valuable information from the grapevine and use it for decision-making. interferes with the effectiveness of communication. Some of the sources contributing towards noise factor are: Poor timing A message sent on poor timing acts as a barrier. There are certain external road blocks to effective communication. It may cause interference in the process of communication by distraction or by blocking a part of the message or by diluting the strength of the communication. For instance a last minute communication with a deadline may put too much pressure on the receivers and may result in resentment. otherwise it will not achieve the desired result and a communication break-down will occur.memo or report stating the facts and thereby help minimize the damage that the informal network can do. The basic idea is that some managers keep in touch with what‟s going on by wandering around and talking with people-sub-ordinates. The manager must decide whether the communication would be most . Other Forms of Communication One that has become especially popular of late is rather colloquially labeled “management by wandering around”.

Physical distractions Any physical distractions such as telephone interruptions or walk-in visitors can interfere with the effective face-to-face communication process. Too little or too much information endangers effective communication. Hence the organisation structure should be such that the chain of command and channels of communication are clearly established and the responsibility and authority are clearly assigned and are traceable. Network breakdown Network breakdown may be intentional or due to information overload and time pressures under which a communication has to be acted upon. chaotic or distorted if the channels are not clear or if there are bottlenecks or dead ends. Ambiguity in use of words will lead to different interpretations. The secretary may forget to forward a memo. Organizational structure Communication may be blocked. Interpersonal Barriers .effective if it is in writing or by a telephone call or a face-to-face conversation or a combination of these modes. Some factors contributing to such disruption are:    Important negative information may be withheld by the managers. It must be precise and to the point. The result could be confusion or some important information may be laid aside for the purpose of convenience. There may be professional jealousy resulting in closed channels. Information overhead Overload occurs when individuals receive more information than they are capable of processing. Improper or inadequate information The information must be meaningful to the employee.

  This perception limits the manager‟s ability to effectively respond to and deal with individual difference and differing views of work situations. Some of the perceptual situations that may distort a manager‟s assessment of people resulting in reduced effectiveness of the communication are:  A manager may perceive people to belong to one category or another as stereotypes. First. For example. The choice of a wrong word or a comma at a wrong place in a sentence can sometimes alter the meanings of the intended message. but it not clean and decent. A pleasant smile may make a positive first impression. The words and paragraphs must be interpreted with the same meaning as was intended. Different people may perceive the same situation differently. Semantic barriers These barriers occur due to differences in individual interpretations of words and symbols. For example. Perception Perception relates to the process through which we receive and interpret information from our environment and create a meaningful work out of it. A manager may make total assessment of a person based on a single trait. “clean and decent dancing every night except Sunday”. either because the sender believes that the receiver does not need all the information or that the receiver is better off not knowing all aspects of a given situation. rather than unique and distinct individuals. could lead to two interpretations. Some of these are: Filtering Filtering refers to intentionally withholding or deliberate manipulation of information by the sender. that there is no dancing on Sundays and second. A manager may assume that his subordinate‟s perception about things and situation are similar to his own. Cultural barriers . Hearing what we want to hear and ignoring information that conflicts with what we know can totally distort the intent or the content of the message.There are may interpersonal barriers that disrupt the effectiveness of the communication process and generally involve such characteristics of either the sender or the receiver that cause communication problems. he may perceive women to be less efficient managers. a night club advertisement sign. It should also be that the receiver is simply told what he wants to hear. that there is dancing on Sundays.

assisting receivers of massages in correct decoding and interpretation and providing an efficient and effective feedback system. Multi-meaning words Many words in English language have different meanings when used in different situations. If the receiver has confidence. designing proper messages. the message is taken much more seriously and accepted at face value. Hence. otherwise it will create a barriers to proper understanding of the message. frustrated or depressed may be interpreted differently than when he is happy. situations. Sender credibility When the sender of the communication has high credibility in the eyes of the receiver. trust and respect for the sender. Accordingly. selecting appropriate channels for communicating these messages.The cultural differences can adversely affect the communication effectiveness. Emotions The interpretation of the communication also depends upon the state of the receiver at the time when message is received. Some of the steps that can be taken in this respect are as follows: . The same message received when the receiver is angry. Feedback barriers The final source of communication barriers is the feedback or lack of it. then the decoding and the interpretations of the message will lead to a meaning of sender. the managers must make sure that they use the word in the same manner as the receiver is expected to understand it. specially for multi-national companies and enterprise. Similarly. Feedback is the only way to ascertain as to how the message was interpreted. if the sender is not trusted. and believe it specially if the message is related to the field of expertise. Extreme emotions are most likely to hinder effective communication because national judgments are replaced by emotional judgments. if the source is believed to be an expert in a particular field then the listener may pay close attention to the message. then the receiver will scrutinize the message heavily and deliberately look for hidden meanings or tricks and may end up distorting the entire message. Conversely. Overcoming Communication Barriers It is very important for the management to recognize and overcome barriers to effective communication for operational optimization and this would involve diagnosing and annualizing. a manager must not assume that a particular work means the same thing to all people who use it.

Twoway communication even though more time-consuming. Listen for feelings in the message content and respond positively to these feelings. When writing messages it is necessary to be precise thus making the meaning as clear as possible so that it accomplishes the desired purpose. avoids distrust and leads to trust and openness which builds a healthy relationship contributing to communications effectiveness. Feedback: Feedback helps to reduce misunderstandings. The information is transferred more accurately when the receiver is given the opportunity to ask for clarifications and answer to any questions about the message. Summarize and restate the message after it is over to make sure about the content and the intent of the message. Do not prejudice or value the importance of the message due to your previous dealings and experiences with the sender or your perceptions about him. A well written communication eliminates the possibility of misunderstanding and misinterpretation.1. Some helpful hints in written communication are suggested by Robert Degise as follows: .       3. Ask questions to clarify any points that you do not understand clearly and reflect back to the speaker your understanding of what has been said. tone of the voice and emotions should receive proper attention. otherwise you would not be able to grasp the meaning of the message in its entirety. Don‟t jump to conclusions before the message is over and is clearly understood. 2. avoids the message. Make sure that there are no outside interruptions and interference during the course of conversation. Improve listening skills: Good listening habits lead to better understanding and good relationships with the each other. positive or negative. Two-way communication. even though more time-consuming. Do not let your mind wander or be preoccupied with something else. Some guidelines for effective listening are:  Listening requires full attention to the speaker. Develop writing skills: Clearly written messages can help avoid semantic and perception barriers. The language used.

Do not be bogged down by rules of composition. Accordingly. The message must be clear. precise and to the point and free from distortions and noise. This will eliminate ambiguity so that the message will not be subject to more than one interpretation. thus contributing to communications effectiveness. Management should not only be sensitive to the needs and feelings of works but also its promises should be supported by actions. be specific and to the point. Write concisely: Use a few words as possible. In specific: Vagueness destroys accuracy which leads to misunderstanding of the meaning or intent of the message. Accordingly. Keep words simple: This will reduce your thoughts to essentials and the message will be easier to understand by the receiver. The message will be lost if the words are complex and do not lend to a clear single meaning. While the rules of grammar and composition must be respected. The ideas and messages should be clear. the management must be sincere and should earn the trust of the subordinates. they should not take priority over the ultimate purpose of the communication. precise and to the point and free from distortions and noise. It should also be brief so that it is just necessary and sufficient and should avoid loose ends or meaningless and unnecessary words.    4. Accordingly to studies conducted by J. Guidelines for Effective Communication These guidelines are designed to help management improve their skills in communicating so as not only avoid any barriers to effective communication. Lift. opinions and ideas in the fewest number of words possible. but express your thoughts. Avoid credibility gaps: Communication is a continuing process and the goal of the communication is complete understanding of the message as well as the creation of trust among all members of the organisation. but also to strengthen the basis for optimum results which depend upon the clear understanding of the desired communication. . brief and precise The ideas to be communicated must be well planned and clearly identified. It should also be clear. openness and an atmosphere of trust builds healthy relationship and closes credibility gaps. Do not be brief at the cost of completeness.

When these concerned levels are omitted or bypassed. avoid negative statements like. expression and emotions exhibited. Use proper follow-up All communications need a follow-up to ensure that these were properly understood and carried out. appropriate and accurate. but also the timing of the message and the environmental setting in which the message is delivered and received is equally important. the established channels must be used as required. Consider the receiver’s interest Take the receivers interest into account. confusion and conflict. questions. they would be highly motivated to give active support to such communication and would carry it through. Accordingly. The communication flow and its spread must avoid by passing levels or people. but be confident and definitive. The management must always be helpful in carrying out the intended message of the communication. Consult with others who are involved in planning the communication If people have participated in the planning process. The written communication should be polite and unambiguous. Mode of delivery While delivering the communication. attentiveness to the receiver and so on. then the receiver will be more responsive to the communication. “I am not sure it will work”. Communication should be comprehensive . it creates bickering. distrust. The response and feedback to the communication should determine whether the action to the communication has been prompt. The success of the communication also depends upon the tone of the voice if the communication is verbal. The management must clarify any part of the communication that may be necessary and must encourage comments. Integrity The communication must pass through the proper channels to reach the intended receiver. and feedback.Sense of timing The message should not only be timely so that the decisions and actions can be taken in tie and when necessary. The people who are concerned must know exactly what they need and when they need the communication.

“It is claimed that it is impossible to have human relations without communication”. It is vital in the relationship between executives and their subordinates. the nature of managerial and organizational communication has changed dramatically. At the same times. What are the steps in communication process? 3. Through proper communication the management is able to keep its employees well informed with its ultimate objectives and what it expects from each individual. Now cellular phones. If such information is shared freely. Review Questions 1. E-mail and Internet have made the communication quick and convenient. coordinate and combine the entire employee for the achievement of organizational objectives. Redfield.Communication should be complete so as not only to meet the demands of today but. „Communication is the mechanism through which human relations have developed”. Define communication and bring out the importance of organizational communications. Role of Communication in Industrial Relations The overall objective of the communication system is to create a sense of oneness among the people and to secure the individual‟s identification with the organisation. . should also be based on future needs of the organisation as well as individuals. As put b Charles E. Thus. Recently. Discuss how communication acts as a tool to bring about smooth industrial relations. mainly because of break through the electronic technology and advent of computers. Identify the barriers to effective communication and discuss how they can be overcome? 5. 2. What are the different types of communication? 4. the management can will the confidence and the employees can be properly prepared for accepting necessary changes by avoiding unnecessary misgivings. There can be no denying the fact that the adequacy and effectiveness of communication system largely determines the success and progress of an organisation. communication seeks to unify. psychologists are beginning to discover some problems associates with these new advances in communication. It is not even possible for managers from different cities to „meet‟ by teleconferencing method without leaving their offices.

In many countries of Western Europe. It has been aptly said that “the major capital stock of an industrially advanced country is not in its physical equipment.O. . workers‟ education refers to education in citizenship. including India. and partly due to “lack of unanimity amongst labour experts on these aims”. According to Harry Laidlar. select the teachers and in considerable measure furnish the finance”. it meant “education of the workers as a trade unionist”. At a Seminar convened by the I. “In the United States of America workers‟ education is considered as synonymous with training in trade union leadership. to others. to still others. To some. The term “workers‟ education” has assumed different meanings in different countries due to historical reasons.K. it meant “basic education for workers who lacked opportunity in formal schooling”.L. In the U. the term workers‟ education is used in its wider connotation and aims at making the worker a better operative. it meant “education of the workers as a member of the community and as a producer. partly because of the “lack of definitiveness of aim or workers‟ education”. it was gathered that the participants had very different conceptions of workers‟ educations. it is the body of knowledge amassed from the tested findings and the capacity and the training of population to use this knowledge effectively”. In the developing countries. It has now been increasingly realized that there is a growing need for the kind of education that will properly equip the workers and trade unions to meet their increasingly heavy economic and social responsibilities. “Workers‟ education is an attempt on the part of the organized labour to educate his own members under in educational system in which the workers prescribe the courses of instruction. Concept of Worker’s Education It is very difficult to define precisely the term “workers‟ education”. The definition emphasizes upon:  The trade union o educate its own members. general adult education and vocational education. it covers trade unionism. a better union member and a better citizen. consumer or citizen”.Lesson 11 Worker’s Education and Training The workers in the country should be regarded as the most significant component of the citizen community and they should be psychologically satisfied by providing opportunities for education and training. in Copenhangen in 1956 to consider the question of workers‟ education.

to create better understanding of work and one‟s own place in national economy. rights and responsibilities as workers. . “The workers‟ education. to prepare worker for effective collaboration with the management. According to the Encyclopedia of Social sciences. “Workers‟ education and trade union are synonymous. “It is .”. certain characteristic features may be noted as below:  The scope of workers‟ education is much wider than that of trade union education. It is a special kind of adult education designed to give workers a better understanding for their status. The educational system should be such in which the workers themselves prepare the syllabi and curricula and themselves select the teachers. since the chief aim of workers‟. to replace outsiders in trade unions and ultimately to make them conscious of their rights and responsibilities that worker‟s education aims at”. as an operative – for his efficiency and advancement. According to another authority. therefore. as union members. “Workers‟ Education” seeks to help the worker solve his problems not as an individual but as a member of his social class. workers‟ education has to take into consideration the educational needs of the worker as an individual for his personal evolution. to create leadership among the ranks of labour.” But trade union education is narrower in scope in as much as it only confines itself in training workers to become good members of trade union whereas the workers‟ education besides providing the workers the training in trade unions also aims at social and fundamental education as that is given with view to making a worker a good citizen as well as a good member of the trade union.  Florence Peterson observes. in not a generic term but has a specific connotation. Characteristic Features of Worker’s Education On the basis of the various definitions given of workers‟ education. and The system of education should be financed by the fund of the union concerned. to bridge the lacuna by illiteracy. problem. as commonly used. aS a whole. to make him a better citizen. as a member of a trade union – for the protection of his interests as a member of the working class. as consumers and as citizens”. education is to equip the trade unions to take a more active interest in the movement. as a citizen – for a happy and integrated life in the community.

  . loyalty and devotion towards trade union work so that the can intelligently participate in the affairs of his union. It includes general education. Understand the basic economic and technical aspect of the industry and the plant where he is employed so that he can take an intelligent interest in its affairs. Aware of his rights and obligations. workers‟ educations should make a worker:     A responsibly committed and disciplined operative. The approach in workers‟ education is psychological and philosophical. It is based upon the idea of gaining more the more strength for the bargaining power of trade and producing workers who should behave as workers. It differs from vocational and professional education as its main aim is to train a worker for his group advancement and for the solution of group problems. whereas vocational and professional education aims at individual advancement. and A responsible and alert citizen. financed and managed by the workers. vocational education. The institutions providing workers‟ education are controlled.       Aims and Objects of Workers’ Education According to the National Commission on Labour. Understand the organisatoin and functioning of the union as well as develop qualities of leadership. Worker‟s education is designed to create trade union consciousness in the workers besides making them good citizens and training them to understand their status. rights and responsibilities. the workers themselves form the curriculum and select their own teaches. technical education. Lead a clean and healthy life based on a firm ethical foundations. In workers‟ education. social education and training in trade unionism.

their responsibilities towards family members and their rights and obligations as citizens. The workers‟ Education Review Committee in India has laid down the following objectives:  To equip all sections of workers. “The primary aim of workers” education is to enable the worker to put his finger on problems confronting him in his social group. tec. and To enable trade unions themselves to take over ultimately the function of workers‟ educations. Training programmers will stem logically from the foregoing the workers‟ place in society. he must understand both his position in the enterprise as well as the role of the enterprise itself within the general framework of national and economic development. to calculate a wage sheet. family. as workers in industry and as members and officials of their trade unions: To develop leadership from among the rank and file of workers themselves.      Contents of Worker’s Education The contents of workers‟ education cannot be put in water-tight compartment as the cultural outlook. historical background. he must acquire a certain culture so that in his capacity of an individual he can locate his proper place within his own trade and milieu. the need for trade unionism and its role. to contribute effectively in meetings. including rural workers..L. labour legislation. united and more responsible trade unions through more enlightened members and better trained officials. To develop strong. he must know what man represents and how he should behave in society. material and . To develop among workers a greater understanding of the problems of their social and economic environment. knowledge of the undertaking and of economic principles. To strengthen democratic process and traditions in the trade unions movement. workplace and nation. human relations without losing sight of a few basic essentials such as how to write a letter or a report. All of which will help to equip him to express and put to practical use the ideas. the study of his rights and duties. experience and teaching received”. neighborhoods.In the words of the Director-General of the I. availability of resources in men.O. for intelligent participation in social and economic development of the nations in accordance with its declared objectives.

labor welfare and international labour problems. methods of collective bargaining. productivity problems. administration and methods of organisation of trade unions. implementation of laws and awards. maintenance of accounts. Union-State relations. correspondence and other office work. determination of wages. workers‟ education should also deal directly with areas like history the trade union movement. recruitment of members. community services. It should include different types of education ranging from general education to trade union education covering vocational guidance. elections of representatives. The content of workers‟ education should be built around core subjects such as Industrial Economics (particularly organizational and financial aspects of industrial units). indices of wages. co-operative and Community Organisation. accounts control and safeguard of the funds. literacy and artistic studies and the manner of conducting conferences and seminars. communication with members. provisions of social and labour legislation. of research memoranda. welfare work of trade unions. Labour Economies. Philosophy. propaganda. Industrial and Social Psychology. structure. Industrial Sociology. Interunion relations. and consumer prices. recreational. farming of constitution. cultural. general and political funds. aims and objective of trade unions and methods of achieving these. registration. planning for economic development. strikes and demonstrations. union management relations. collection of dues. The broad contents should cover:  Organisation. holding of meetings and writing of reports. trade union finance. But in general the scope and contents of workers‟ education should be determined according to the environment. fighting cases in labour courts. constitution. adult. delegation of authority. educational and cooperative activities. Relevant economic and social problems. labour statistics. economics of employment and social security. negotiations with employers and the States. social and labour legislation and practices concerting their legal rights and obligations.   Teaching Techniques . employment and union development. With emphasis on trade union and stage of economic development differs from country to country. technological training. submission of returns. mutual insurance. such as grievance procedures. labour administration and policy.

India had been suffering from acute shortage of skilled and trained workers for a number of occupations and industries. arranging symposia. debates. case studies and two-way communication methods are also encouraged. maps and diagrams. special lectures. This training pre-supposes a sound basis of universal literacy. and (iv) correspondence courses. delivered in simple.The workers‟ education courses may be conducted in the campus itself. differentials between he income of skilled and unskilled workers. (ii) discussions on the topics/ issues involved. posters. Educational visits and study tours of the trainees to union-offices. But for rapid industrial development. rank and file workers. and properly designed training institutes. tests seminars. and trade union leaders. Demonstration. Besides. Bringing about any change in these is an uphill task. factors like social attitude towards industrial work. flannel graphs. etc. radio and recording. films strips. Extension work may also form a part of the programme of workers‟ educations. flash cards. besides active and enthusiastic participation by the worker-teachers. reduced supervision. Worker’s Training Till recently. the provision of training facilities for the workers is the great need of he hour. and for this purpose a number of educational aids and devices are used – like films. proper planning an utilization of trained personnel and utilization of trained personnel. role-playing. and the training and educational facilities available in the country. which necessarily meant that the rate of skill formation ahs been low. The workers may also be given practical training in the field. the educational system has also been responsible for this state of affairs. flip card. The results of workers‟ education programmes have not been very impressive and leaves a vast scope for its improvement. factories and multipurpose projects are important aspects of workers‟ education. The success of the programme depends to a great extent on responsive cooperation from the unions and management. pictorial charts. less waste. The techniques employed in imparting workers‟ education are: (i) the general lectures. (iii) arranging study groups. Needless to say that trained leads to higher efficiency and increased productivity. Modern methods of teaching are adopted. and majority of the workers suffered from low efficiency. higher employee earning. direct and unambiguous language. wall newspapers. reduced .

National Trade Certificates are issued to the successful candidates. For example.T. Part-time Training to Industrial Workers 7. Apprenticeship Training Schemes 6. The Directorate General of Employment and Training has evolved various training programmes for the young persons. Vocational Training Programme for Women Craftmen’s training To provide training to young men and women in the age-group 15-25.T. the institutes at Kanpur. has set up Industrial Training (it is) all over the country.G. Foremen‟s Training 5. Bombay and Ludhiana provide training in printing. Craft Instructor Training 3. Advanced Vocational Training 4. Training Schemes of D.E.accidents. Such programmes comprise: 1. To promote the efficiency of craftsmen trainees. and in hotel catering at the Hyderabad Institute.E. weaving and farm machines trade. Advanced vocational training system .G. the D. aptitude tests have been introduced which are applied for the selection of craftsmen – Trainees in engineering trades and one year for non-engineering trades. Craftsmen‟s Training Programmes 2. heightened morale and vertical job mobility. training in chemical group of trades is provided at Bombay institute. increased organizational stability and flexibility. Craft instructors’ training The central training institutes train craft instructors required by the ITIs and the apprentice training establishments.

the training programmes do not take into account local and regional needs. Briefly explain various schemes of workers‟ training. The quality of the training programme need to be increased a large extent. training is provided in basic trades and on the job.Under this system. What is workers‟ education? What are its objectives? 2. Explain the contents and teaching techniques of workers‟ education? 3. Training is provided to the existing and potential shop foremen and supervisors in theoretical and managerial skills and workers from industry in advances technical skills. Part-time training for industrial workers For industrial workers. substantial training capacities have remained unutilized. Industrial workers. 1961. training of highly skilled workers and technicians are provided in a variety of advanced and sophisticated skills not available from other vocational training programmes. Review Question 1. Apprenticeships training scheme Under the Apprentices Act. For such apprentices. Vocational training programme for women The National Vocational Training Institute for Women provides instructor training. possessing two years workshop experience in a particular trade and sponsored by their employers are eligible for admission to this course. part-time evening classes are organized to improve their standards of working. . basic training and advanced training in selected trades particularly suitable for women. But. Foremen’s training For the training of foremen an institute was set up. Further. employees are required to engage apprentices.


UNIT –VI 12. Employee Safety Programme 14. Industrial Health and Social Security 13. Conflict Management 16. Quality Circles . Employee Counselling 15.

In the traditional sense. and (iii) promoting the establishment and maintenance of the highest possible degree of physical mental and social well-being of the workers. Industry exposes the employee to certain hazards the may affect his health adversely. in so far as employees benefits are concerned. Obviously employees in the modern industrial setting are subject to various types of health hazards and occupational diseases. work performance and productivity. has occurred in the areas of health and social security. industrial health may comprise measures for (i) protecting the workers/employees against any health hazards arising our of their work or the condition under which it si carried on. but in its present connotation. spend a considerable portion of their working time today in an industrial setting where they are employed. According to one view. health is “the outcome of the interaction between the individual and his environment”. It is with the intention of reducing such hazards and improving the employee‟s health that the discipline of industrial health has come into being as a branch of public health. health implies “the mere absence of an ascertainable disease or infirmity”. (in) fostering the adaptation of workers to the jobs and work environment and thus contributing towards the employees‟ physical as well as mental adjustments. According to such a dynamic approach. Industrial health is comparatively an new system of public health and preventive medicine practiced among industrial groups with the specific object of improving their health and preventing the occurrence of disease as well as injury to them. A large segment of the adult male population and quite a number of adult females too. the normal health hazards may be caused by- .Lesson 12 Industrial Health and Social Security The greatest activity over the past few decades. The introduction of industrial organisation may contribute effectively to a positive reduction in employee absenteeism and turnover as well as discontent and indiscipline among the employees and thus may improve their morale.

vibrations and shocks or atmospheric conditions such as inadequate ventilation. In India. old age. a list of such diseases are appended to sections 89 and 90 of the Factories Act. noise. emotional strains due to fear. industrial accidents or disability. In industrial undertakings. primarily cancers of skin. sickness. 1923 which includes lead poisoning. chorome ulceration. cancer and neurological disorders they may shorten life expectancy. anxiety etc. dietary deficiencies. viruses. old age and other contingencies. Such diseases are usually slow to develop and generally cumulative in their effects. Biological factors including sickness caused by bacteria. carbon dioxide. various occupational diseases may also be caused as a result of the physical conditions and the presence of poisonous and non-poisonous dust and toxic substances in the atmosphere during the process of manufacturing or extraction. financial and social insecurity means inability or lack of capacity of a person or individual to protect himself from the risks of unemployment. sulphur dioxide. dermatitis due to action of mineral oil. sulphuric acid. fungi. 1948 as well as the Workmen‟s Compensation Act. begassoise etc. Besides such health hazards. industrial accidents. vibration and shocks may cause nerve injury and inflammation of tissues of he joints of the operative‟s hands and improper lighting may impair the employee‟s vision. asbestosis. allergies. acetic acid etc.   While exposure of workers to radiation may cause cataract. Thus linked with problems of employees safety and industrial health of workers is the question of provision of security to them by the society or the government. toxic anemia. anthrax silicosis. workers are often subject to periodic unemployment due to sickness. When they are inhaled or absorbed by the skin which may result in acute or chronic sickness including respiratory or heart diseases. or on account of financial sickness or not so- . lighting arrangement or very high or low temperature at the work place. Social Security Broadly speaking. phosphorous poisoning. it has been pointed out that many manufacturing processes are accompanied by such noise as is capable of not only impairing the hearing of a workers but also of making it difficult for him to hear any warning of an impending danger. and Environmental factors including illness due to radiation. arsenic poisoning. Chemical substances at the work place such as carbon monoxide. Each diseases are usually slow to develop and generally cumulative in their effects.

1924. accident and some occupational diseases arising our of and in the course of employment and resulting in disablement and death. 1923 Workmen‟s Compensation Act. passed by the Government of India in 1923. plantations. became effective from July 1. In these circumstances it is obligatory on the part of industrial establishment and the government to help these workers and provide them security or what we call social security. Social security programmes include –        Medicare and insurance benefits Medical help at the time of injury and accident and provision financial compensation and relief. mines. unemployment. injuries. Workmen’s compensation act. . a beginning was made in social security with the passing of the Workmen‟s Compensation Act. The act is applicable to railway men and persons working in factories. sickness. ole age or other contingencies. disablement. Some important acts and schemes in this context are discussed below.efficient condition of business. These may incapacitate a worker temporarily or permanently and lead to unemployment causing financial misery and other consequences. The act provided for payment of compensation to workmen and their dependents in case of injury. Social Security Programmes in India In pre-independence period. After independence. Ordinarily. Social security is a system of protection or support provided by the society or government to workers and their families in time of sudden calamity. workers do not have financial resources to cope up with these problems or alternative means of livelihood. the government of India has enacted a number of laws and has introduced and implemented many schemes to provide social security to industrial workers. industrial accidents. Pension in case of disablement Unemployment insurance or allowance Maternity benefits Death payments and family pension Retirement benefits or old age relief etc. 1923.

1600 per month. 24. Employees state insurance act.000 in case of death and from Rs. 1.14. benefits in the contingency of sickness.000 to Rs. the government has set ups employees‟ State Insurance fund administered by an autonomous Employees‟ State Insurance Corporation. The scheme which was originally framed to cover perennial i. such laws are in force in almost every state of the country. does not apply to workmen who are covered by the Employees State Insurance Act. 1948 (ESI scheme) The Employee State Insurance Act. For the purpose. Now. plantations. restaurants and shops and establishments employing ten or more persons. The rate of compensation ranges from Rs. employing 20 or more persons. the rate of compensation is 50 per cent of the wages of workmen and is to be paid for a maximum period of 5 years. Presently employers are required to contribute 1. It covers employees drawing wages upto Rs.25 per cent of their total wage bill towards the fund. The Maternity Benefit Act. annexes and dispensaries established at important .000 in case of permanent disablement depending on wages of workmen. 1961 passed by Central Government regulates employment of women in certain establishments for certain period before and after child birth and provides for maternity and other benefits. The act entitles the female workers to get about 3 months or 12 weeks maternity leave with full wages. 20.mechanically propelled vehicles. 1948 is the most important comprehensive scheme for providing social security benefits. In case of partial disablements. restaurants. factories. hotels. There is no wage limit for coverage under the Act.e. 1961 The Government of Mumbai was the first one which passed Maternity Benefits Act in 1929. non-seasonal factories using power and employing 20 or more persons has been gradually extended to smaller factories. 1948. The act aims at providing compulsory and contributory health insurance coverage to workers. 1948. There is a network of hospitals. construction works and certain other hazardous occupations. etc. However this act is not applicable to those female workers who are covered by Employees State Insurance Act. hotels. The Act covers female works in mines. Finances for the fund come from the contribution from employers and employees and government grants. cinemas. 90. Employees have to contribute compulsorily a nominal sum. Maternity benefit act. circus industry. a small percentage of the wages towards this insurance coverage. Full Medicare and hospitalization is also being progressively made to members of family of he injured persons. The act. The Act provides for medical care in kind and cash. however. shops. maternity employment injury and pension for dependents on the death of the worker because of employment injury.000 to Rs.

Employees deposit-linked insurance schemes. this contribution is deducted from the wages of employees and deposited in the Fund set up for the purpose. the person entitled to received his accumulated provident fund gets an additional insurance amount equal to average balance in PF account of the deceased during the preceding twelve months provided that such average balance was not less than Rs. 2000. 1952 provides retirements benefits such as provident fund. However in respect of 98 industries or classes of establishment employing 50 or more persons. 225 to Rs.33 per cent. .industrial centers throughout the country to provide medical care and other facilities to workers. Death relief A Death Relief Fund was established under the Employee Provident Fund Scheme in 1964 to provide financial assistance to nominees or heirs of deceased members of unexempted establishments getting maximum salary of Rs. Employment provided fund The Employment Provident Fund and Miscellaneous Provision Act. 500 to meet immediate expenses. It provides long-term financial security to families of industrial workers in case of their premature death. This act covers establishments employing 20 or more persons and is restricted to those drawing wages up to Rs. 1976 as amended in 1990 Under this scheme. The employers have to make a matching contribution. 500 during the said period. The scheme covers about 62 lakhs employees.000 and the employees are not required to make any contribution to it. 750 per month depending on the period of membership. Under the act. It is made out of the Employees Provident Fund to which the government makes additional contribution for the purpose. Family pension ranges from Rs. The minimum rate of contribution under the act presently is 8. it has been enhanced to 10 per cent. 3500 per month and is applicable to about 175 industries or classes of establishments. The maximum amount to be paid is restricted to Rs. The amount of provident fund held in employee‟s name along with interest is paid to him at the time or his retirement. Presently family pensioners are also entitled to assurance benefits of Rs. 1500 per month at the time of death. in case of death of an employee. Family pension scheme This scheme was introduced in 1971. family pension and deposit-linked insurance. 25. The amount was restricted to the sum equal to the amount of PF balance falling short of Rs.

security and welfare of the workers engaged in the organisation. lower the cost of worker‟s compensation by persuading the management to provide a safe working environment. and their rights concerning compensation payable to them in case of accidents and injuries and about the provisions of various social security measure in force for their welfare. 1972 This Act is applicable to factories. plantations. companies. Personnel departments can play an important role in ensuring safety.Retirement-cum-withdrawal benefit A member is entitled to withdrawal benefit on retirement or superannuation at the rates ranging between Rs. 50. It should also comply with various legal rules and regulation honestly and faithfully. rules and regulation. health. Payment of gratuity act. The act covers employees receiven wages upto Rs. 110 to Rs. This can be done by organizing training courses. oil-fields. They can help in reducing accidents and thus. . The first thing they can do is to make employees aware of the safety measures. 2500 per month. railways. 9000 to Rs. In such case of seasonal establishments gratuity is payable at the rate of seven days‟ wages for each season. automobiles undertakings.000. The act provides for payment of gratuity at the rate of 15 days wages for each complete year of service subject to a maximum of Rs. mines. An important implication for the personnel department is that it should provide adequate the reasonable financial and security benefits and facilities. ports. 400 (for one years membership) and from Rs. 19825 (for 40 years membership) depending upon the pay range of the members and length of his membership. shops etc.

Therefore.Lesson 13 Employee Safety Programme A safe hygienic work environment is the basic and common requirement of every employee irrespective of his position or status in the organisatoin. Sometimes it is situational factor and on other there are individual factors which are responsible for accidents.  Work-related causes: Unsafe working conditions are the prime cause for any industrial accident and these include all engineering deficiencies. Scientific management. therefore. These mainly include improper lighting. poor machine guarding. To be considered as an accident it must take place in the course of employment in an industrial establishment. designing and operations of man. and unsafe and careless housekeeping. Human engineering or ergonomics which the study of work and of work methods can help the organizations in protecting their employees against the dangers of accidents and industrial diseases. 1948 defines accident as “an occurrence in an industrial establishment causing bodily injury to a person which makes him unfit to resume his duties in the next 48 hours”. the causes of accidents may be attributed to work related causes and worker related causes. Basically industrial accidents will arise either due to technical faults or due to human follies or errors. Employees Safety and Industrial Accidents No industrial organisation can take the subject of employee safety in a casual manner because frequent industrial accidents will result in decreased production and monetary loss due to adoption of compensatory measures imposed by law. Factories Act. is a necessity for the organizations at it will strengthen industrial relations and will enhance job satisfaction. And it is the moral as well as legal responsibility of every employer to provide a workplace to its employees which is not hazardous to their physical or mental health. Causes of industrial accidents Nature and causes of accidents broadly vary form organisation to organisation. Very minor accidents may create major industrial disputes. Therefore. polluted work place. These factors will . All industrial accidents can hardly be ascribed to chance factor though such a possibility cannot be ruled out completely in every accident. An industrial accident may be an event which takes place without foresight or expectation and results in some personal injury or damage to property. inadequate safety devices. machine environment scientifically will ensure mental and physical rest to the human beings.

Here management will have to be cautious from the very selection of the employees. the organizations should have strong voluntary machinery for the prevention of accidents and should follow strictly the guidelines issued by Government. Lack of adequate skill or knowledge in handling the machine. In addition to it. working at unsafe speed are some of the causes due to which workers become victims of industrial accidents. 155. If the voluntary machinery for the prevention of industrial accidents is strong enough. health and welfare since long.  Worker-related causes: These are human factors responsible for accidents due to their unsafe acts.L.create psychological and physical problems for the worker and will invite industrial accident. Machinery for Preventing Industrial Accidents Employees‟ pressure for higher production. neglecting safety device and instruction. Obviously the first step for the accident prevention machinery will be to isolate such situational factors which may lead to accidents. Regulatory machinery International Labour Organisation (I. Voluntary machinery As the name suggests.O. disturbed mental condition. the management perhaps may not require to follow statutory laws. Employees should be motivated to develop safety behaviour and follow safety rules. Safety training should be provided to the workers on regular intervals. Government of India also took initiative in enacting protective provision in its various legislations. Today various psychological tests are available to test the ability and suitability of the individual for a particular job. . using unsafe machine. these measures include the ways implemented by the management voluntarily and not imposed by the law. efficiency and profits can result in unsafe working conditions and work behaviour. No. The machinery for prevention of industrial accidents can be studied under two heads – voluntary machinery and regulatory machinery.) is the body which is working for employees‟ safety. Organisatoins may develop their own safety programmes and enjoyed safety officers. There should be proper record of the accidents which took place in the past so that management is able to concentrate on accident prone areas. The latest effort in this direction was the Occupational Safety and Health Convention. adopted in 1981. they should be involved in them. Further to generate the interest of workers in safety programme. Accidents always do not take place by chance.

adequate measures should be taken by the employees to provide safe and secure work-place to the workers. approval to mines safety equipment. minimum distance to be maintained form self acting machine. therefore. The employees State Insurance Act. is granted power to inspect the plant for unsafe condition. In small organizations. recruitment of trained and adult male workers. the personnel manager may look after the functions of this department. prohibition of women and children from working on moving machines and specific provisions for protection of eyes against glare. the head has the authority to issue and enforce orders in his functional field of safety. 21 to 38 of Factories Act provide for safety provisions in the industrial organisatoin. appliances and material etc. the rest of the three prescribed the liability of employer to pay compensation to the workers for the injuries caused by industrial accidents. Factories Act. 1963 are the main legislations passed by the Union Government which deal with occupational safety provisions in the industrial organizations. purchasing safety equipments. investigation of all fatal accidents and certain serous accidents depending upon their gravity. and to report violations to the plant manager. In some organizations. to promote sound safety practices (through posters and safety campaigns). explosive dust. that is. The head of the safety department. health and welfare or works employed in mines. Whereas the Factories Act prescribes measures for avoidance of industrial accidents. 1948 and Personal Injuries (Compensation Insurance) Act. the relationship between the head of the safety departments and the line manager may be functional. His functions also include analyzing the causes of accidents. exemptions and relaxation in respect of various mining operations. dangerous fumes. Companies of Safety Service Among the many components of a safety service the following have proved effective when applied in combination: Appointment of safety officer In big organizations. The Mines Act 1952 contains rules and regulations for providing safety. The details of a few of these acts and schemes are given later in this Chapter Sec. to make safety rules. gas tec. . maintaining accident statistics and records. The act provides for fencing of machinery. and so on. the appointment of a safety officer to head the safety departments is a „must‟. In addition to these. These rules are enforced by the Directorate General of Mines Safety whose main functions included inspection of mines. 1948. who is usually a staff man. As industrial safety is both an end and a means. State Governments are empowered to supplement the provisions to further strengthen the safety of industrial workers.Workmen‟s Compensation Act 1923.. grant of statutory permission.

Elimination of hazards Although complete elimination of all hazards is virtually an impossibility but following steps ca be taken to help reduce them:  Job safety analysis: All job procedures and practices should be analyzed by an expert to discover hazards. On the basis of job safety analysis the expert should also determine any special qualifications needed by an individual to perform the job. enforcement of standards and working through groups. sequence and the like. the careless handling of heavy and inflammable materials is an important source of several injuries and fire. This highlights the importance of making safety a line responsibility. It is said that safety is essentially a line problem. on housekeeping inspections and investigations of accidents. Material handling: Though often ignored. These qualifications may be later incorporate in the job specifications. Employees should be placed on jobs only after carefully estimating and considering the job requirements with those which the individual apparently possesses.Support by line management The head of the safety department. cannot make a plant safe. whether enjoying a staff or a functional position. For example. He should then suggest changers in their motion patterns. His appointment lulls line management into assuming that all its safety problems have been solved. he may discover that a particular reach over a machine could easily result in a loss of balance and injury or he may discover that a corner of a fixture is sharp enough to cut the hands of the worker. by himself. Like all other line management problems it also involves questions of motivation. Placement: a poorly placed employee is more apt to incur injury that a properly place employee. Safeguarding Machinery: Guards must be securely fixed to all power driven machinery.     . Personal protective equipment: Endless variety of personal safety equipment is available nowadays which can be sued to prevent injury. One sure way to win line people‟s support is to encourage them to participate on safety committees.

close supervision and instruction should be given to the employees on the proper tool to use and the proper use of the tool. Hand tools: Minor injuries often result from improperly using a good tool or using a poorly designed tool. Safety inspections can take any one of the following four forms: . location of hazardous items above employee reach. other items such as dirty windows. Layout and design: A good plant layout and design can go long way in preventing accidents. Piles may not be properly constructed and may subsequently collapse.     Safety training. suggestion awards. Maintenance: Worn-out machinery. poor work methods and disregard of safety rules) is a very effective device to promote safety. old and out-of-date fire fighting equipment also contribute to serious hazards. and storage space. Publicity in the form of contest programmes. Periodic inspection can help prevent many accidents stemming directly from these causes. and various audio-visual aids can be considered as a form of employee education. doorways and passageways. slippery floors. Therefore. education and publicity Safety training is concerned with developing safety skills. whereas safety education is concerned with increasing the employees‟ knowledge about accident prevention. dusty lights and dirty reflectors which reduce the effectiveness of lighting can also result in employee injury. machinery guards and attachments. provision for non-skid floor. Safety inspections An inspection by a trained individual or a committee to detect evidence of possible safety hazards (such as poor lighting. They often give employee a false sense of security and protection. Training to deal with the general hazards can be given at the time of induction. Housekeeping: Good housekeeping does not include only tidy and clean floors and machines. adequate fire escapes. Specific hazards can be covered at the time of job training. construction of fireproof walls. protection of radiators by grills can do much to reduce accidents. aisles. Falls: Another major source of industrial injury is tripping over subjects. This should refer to the hazards generally prevent in the company as well as the specific hazards associated with individuals jobs. faulty electrical installations. slipping on floors and falling on to another level. unguarded machines. Safety training programmes should be derived from an analysis of training needs. safety companies. Many dangers lurk in stacking and storing.

Responsibility for Action Date for Completion The safety audit form  Random spot check: Spot checks can be made in each area or department on a random sample basis or to cover special problems. A Number of Observation Dept. B Dept. Causes Action Recommended Date………………. C Random inspection form  Daily checks: Supervisors can be required to make daily checks of safety points in the departments under their control which should list the problem conditions and indicate the action to be taken either by the supervisor himself. Audit area or Department………… Check Points Symptoms Inspected by…………………. An example of the form that can be used for this purpose is given below: Inspection carried out by Date…………………. management. Unsafe Act or Condition Dept... Deptt…………………… . such as the inadequate use of protective clothing. Periodical safety audit: Here checklists are prepared of the points to be covered and an inspection programme is planned to deal with them at regular intervals. or the safety advisor. An example for the form to be used for this purpose is given below: Supervisor……………… Date…………………. Here the inspector may simply enumerate the unsafe acts or conditions observed by him. We give below a sample form that can be used for this purpose.

Date & Time of return to work…………………… Where and how die the accident occur? .. dangerous processes. pipelines. Date & Time of injury…………………………. Name of injured………………………. Investigation of accidents By determining the reasons for an accident. An example of a simple investigation report is shown below: Department…………………. appropriate action can be taken to prevent similar future occurrences. pressure vessels. hoists etc. lifts.Item Condition Immediate action taken Future action proposed Daily check form  Regular inspection: This may be carried out when required by legislation or by insurance companies. of boilers.. Investigation of an accident usually involves the following steps:       Define the problem or nature of accident Collect all relevant facts Determine the cause of the accident Develop several alternatives to prevent recurrence Select and implement the most effective alternative Suggest disciplinary action against the employee whose actions were formed deliberately unsafe or negligent.

on a quarterly basis. The formula to calculate this rate is: Date………………. Human engineering or ergonomics and .. These rates can be computed periodically.Names of injury---------------------------------------------------------------------------------Names of witnesses----------------------------------------------------------------------------Classification of accident: Type of accident Location of accident Severity of injury Measures taken and proposed to avoid repetition Signature……………………… Measurement of safety Various rates and ratios can be computed to indicate to employees and management the progress the safety departments is making in its job.  Security Rate: This expressed as the number of days lost due to accidents per million man-hours worked. A lost-time accident is one which makes an employee unable to work on one or more days following the accident. Too important measures of safety widely recognized and used in business are as follows:  Frequency Rates: This is expressed as the number of lost-time accidents per million man-hours worked. both for the company as a whole and for each line departments. say. The formula for this is: New Techniques in Account Prevention Three new techniques of accident prevention which have recently been developed in industrially advanced courtiers of the West are:   Damage control.

the situation has an accident potential only. Lukens Steel of the United States have conducted systematic research to evolve a method that would predict accurately when the lost-time injury would occur. But as it is near-miss. This is damage control. the injuries received prove fatal. the injuries caused by an accident are serious enough to keep the worker away for more than three days. At stage six. At stage two. there is no injury and no damage to plant or equipment. no injury is recorded. Therefore. this theory does not go so far as to accurately predict when the lost-time injury would occur. But people are not involved. One should note that it is not the same as conventional accident control. here would be 29 accidents involving minor injuries and 300 near-accidents involving no injury caused by the same set of circumstances. Industrial Accidents Prevention. Human engineering or ergonomics . Their study concludes hat every accident is preceded by a series of minor injuries and incidents which can be said to occur in the following six steps:  At stage one. therefore. Systems safety Damage control Heinrich in his book. established that adequate number of sign and indications would be available to those who can keep their eyes open and mind watchful and a documentation of these indicators would help exercise a better control over the situations and factors leading to damage. At stage five. It concentrates attention on injury potential at the pre-injury stage. postulates that before a given set of circumstances can lead to a lost-time accident. The accident causes minor injuries to people as well as possible damage to plant and equipment. There ay be something unsafe in the working environment or wrong attitude to safety in a certain department. At stage four.      Likens Steels experts have. Unsafe acts may occur due to inefficient supervison. At stage three. people are involved. the accident potential is realized and dangerous incidents do in fact occur. However. the near-miss becomes a hit a plant and equipment are damaged.

Bring out the importance of industrial health and safety. All the components of a system are complementary to each other. Accidents occur when any one part of the system fails or malfunctions. Thus ergonomics is the application of knowledge of human capabilities and limitations to the design of plant and equipment. . What are the major sources of health hazards and other types of insecurity of industrial employees? 3.Ergonomics is the science that deals with many-sided problems of how to fit a job to man‟s anatomical. Certainly if the entire industrial system were under complete control. no accident would result. An equipment designed on the principles of human engineering is far less likely to be a source of accident than one designed without such considerations. physiological and psychological characteristic to enhance human efficiency and well-being. 2. The systems approach gives rise to use of advanced quantitative techniques and computers. Review Question 1. What types of health and safety programmes are generally provided to employees in modern industrial organisation. Systems safety A system is an orderly arrangement of components which are interrelated and which act and interact to perform some task or function in a particular environment.

Hence the managers should take steps to maintain a reasonable emotional balance of their employees and channelize their emotions on the constructive lines. morale and increase absenteeism. Such counselling on a systematic and planned basis may take place at three levels. Counselling is a method of understanding and helping people who have technical. personal and emotional or adjustment problems that usually has emotional contents that an employee with the objective of reducing it so that performance is maintained at adequate level or even improved upon. and Counselling by psychiatrists from inside or outside the organisation. It is sometimes more disastrous to suppress emotions. Forms of Counselling Counselling may be formal or informal. It takes place in the normal work situation without any predetermined schedule and is considered as a part of .    Supervisor‟s counselling with his subordinates periodically. The problems may reduce their productivity. The instrument with which the managers can achieve such balance is called counselling. The man purpose of counselling in industry is to help employees in overcoming their neurotic or emotionally based illness that accounts for a substantial part of employee absenteeism and turnover. Professional counselling within the organisation by staff members of personnel department.Lesson 14 Employee Counselling Emotions are part of the nature of human beings and emotional upsets are part of their life. Informal counselling is done in the natural course of human relations among individuals who have mutual confidence and respect for each other judgments. The emotional problems affect the interest of the employees himself and the organisatoin in which he is working for. Objective of Counselling The general objective of the manager in counselling sub-ordinates is to help the individual remain effective in his job and performance of his duties in the organisatoin. Formal counselling implies the direct intention of the management to structure a counselling relationship between the employee and his supervisor or sometimes a counselling specialist with adequate professional training.

after hearing the problems of an employee. no matter how good it might be. It is defined as mutual discussion of an employee‟s emotional problem to set up conditions and plans of actions that will remedy it. Cooperative Counselling is the process in which both the councellor and client mutually cooperate to solve the problems of the client. But directive counselling seldom succeeds. The counselor. the best among the three forms. He takes the person as best to solve his own problems and he facilitates the person to reach his goal. It is not either wholly client centred nor wholly counselor centred but it is centred both councellor and client equally. the nondirective counselling goes to the underlining cause. It is thus suggested that nondirective to counselling is. This form of counselling appears to be more suitable to managerial attitude and temperament in our country. the real crisis that leads the employee to understand his problem. The nondirective counselor deals with respect the person so affected. Among the three from of counselling. It focuses on the counselee hence it is called „client centred‟ ounselling. The main stress is to „change‟ the person instead of dealing with his immediate problem only. normally consists of the following stages: . as people do not wish to take up advice normally. Nondirective Counselling is the process of skillfully listening the emotional problems of an employee.he routine duty of a manager. the advice offered in directive counseling considers the surface crises. Quit often. probably. understand him and determine the course of action to be adopted to resolve his problem. Counselling Process The counselling process. decides what should be done and give advice and suggestion to him to resolve the problem. Professional counselors usually adopt this method of ounselling. the subordinates does not know or realize that counselling is taking place. Techniques of Counselling On the basis of techniques counselling could be    Directive Counselling Non-directive Counselling Cooperative Counselling Directive Counselling centre around the counselor. The unique advantage of this type of counselling is its ability to cause the employees reorientation.

Counselling and Industrial Relations When employee are affected by job related and personal problems that very much affect the organizational welfare besides their own. see to it that the councellor eventually concentrates his thoughts on his problem rather than stray away from it. his feelings. his problems and needs. Exploration This involved understanding with the help of the counselling. if he problems are not identified in the initial stages itself and solved. Concerning career problems the supervisors may refer such cases to the personnel specialists within the organisation. Having understood the importance of counselling as a tool of solving the various problems of the employees and help them the maintain/ improve concentration in their . The counselor has to help the counselee in concentrating more on the problem and getting deeper into it and to discover the basic problems by himself. Again.Initiating This involves developing mutual understanding openness and acceptance between counselor and counseled. his strengths and weakness. it is the line supervisors who must create confidence on the minds of their subordinates that they can solve even the personal problems of their employees. This rapport building is essential to initiate the counselling. It is important for the counselor to achieve a free flow of expression-often through rumblings – of the employee. Formulation of action plan This involved exploring possible solutions and formulating action plan for implementing them to make the counselee the normal person. the line manager knows well from his experience how and what changes he may suggest that may help restoration of employee‟s effective performance. the counsellee‟s own situation. The supervisors should also be aware of that personal and job related problems are largely inseparable and the employee brings his total personality to his work and hence the organizations should also help their employees to solve their personal problems to the extent possible through counselling. however. Hence. Hence the organisatoins should take these problem seriously and solve them. The councellor allows the counselee to talk about anything even apparently unrelated to the issue. they may assume a serious proportion and ultimately affect the employee and organisation resulting in poor industrial relations. The counselor will need an alert and receptive mind for this. If the problems are relating to technical or job related. The councellor.

3. now many organizations start adopting conselling practices and procedure to maintain better industrial relations. Explain the forms and techniques of employee counselling in industry. . Review Questions 1. Describe the process of counselling. performance. What is counselling? Bring out its importance.

conflict is an inevitable feature of organizations. ideas. resulting in such aversive consequences such as strikes. Conflict can exist either at the latent or overt level In conflict one side sees on opportunity to interfere with the others opportunity to acquire resources or perform activities. The management of conflict is an essential prerequisite to sound human relations. it could tend to become destructive. and acts as a catharsis. “conflict is a process in which an effort is purposefully made by one person or unit to block another that results in frustrating the attainment of the other‟s goals or the furthering of his or her interests”.Lesson 15 Conflict Management Conflict is a basic fact of life in groups and organizations. values and behaviours. Hence. Conflict refers to deliberate behaviour. Organizations contain people with divergent personalities. inherent in any system. interests or people. Conflict arises out of differing perceptions. ideas. More specifically. Features       Conflict occurs when two or more parties pursue mutually exclusive goals. Chung and Megginson describes conflict as the struggle between incompatible or opposing needs. Conflict is not an organizational abnormality but a normal aspect of social intercourse. At the same time if conflict is allowed to develop beyond control. Conflict is a naturally occurring phenomenon. not always bad and in fact an optimum level of conflict energizes the system. Fosters creativity and innovation. values or events. Level of Conflict . The effective manager must understand the nature of conflict that is beneficial to the organisation and conflict that is not. inevitable. perceptions. He must deal with conflict in ways that promote both individual and organizational goals. sabotage and other dysfunctional behaviours. wishes. goals.

LEVEL OF CONFLICT Optimum Level High Level Level Low Level Stages of Conflict Episode CONFLICT AFTER MATH LATENT CONFLICT PERCEIVED CONFLICT FELT CONFLICT MANIFEST CONFLICT CONFLICT RESOLUTION The above model presents conflict as a series of stages namely latent conflict. Latent Conflict Each episode of conflict starts with a „latent conflict‟ but the actual conflict has not emerged. Managers have to monitor the level of conflict in the system and if there is too little or no conflict at all. manifest conflict and conflict aftermath. Factors such as competition for scarce resources. the managers may even have to induce some level of conflict to energize the system. . competition for positions in the organisation exist which could become conflicts.Low level of conflict creates conditions of inertia and boredom in the system and excessive conflict results in destruction and dysfunctional tendencies. felt conflict. perceived conflict. As the level of conflict tends to go beyond the optimum level the manager must act to resolve the conflict in a manner that will be beneficial to the organisation.

Felt conflict When the conflict makes one tense or anxious. Conflict aftermath The aftermath of conflict may be either positive or negative for the organisation depending on how the conflict is resolved. all of which reduce organization‟s effectiveness. the conflict is a felt conflict because the difference are personalized or internalized. it is called conflict resolution. sabotage. If the conflict is genuinely resolved. It takes the form of conflictual behaviour including aggression. Manifest conflict This is the stage for open confrontation. it can lead to more enduring relationship between parties. apathy etc. This is called „conflict aftermath‟.Perceived conflict This conflicts results in due to the parties misunderstanding of each other true position. if the conflict is merely suppressed but not resolved. the latent of conflict may be aggravated and explode in more violent and serious forms. Types of conflicts Conflicts may take following forms: CONFLICT Individual Conflict Group Conflict Organizational Conflict Inter-individual conflict Intra-individual conflict Interorganization al conflict Intraorganizatio nal conflict Inter-group conflict Inter-group conflict . Conflict resolution When conflict is resolved in some form. One party perceives the other to be likely to thwart or frustrate his goals.

An individual confronting with role conflict will experience psychological stress leading to emotional problems. Basically. The most common reasons for inter-personal conflicts are personality differences. Generally three separate types of goal conflicts are indentified.Individual conflict Inter-individual conflict Inter-individual or inter-personal conflict involves two or more individuals who hold polarized points of view. Approach-avoidance conflict: In this form of goal conflict the person attempts to achieve a goal that has both positive and negative aspects but wants to avail of positive and negative.  Role conflict is the result of divergent role expectations. Intra-individual conflict Intra-individual conflict is internal to the person and probably the most difficult type of conflict to analyze. Goal conflict occurs when a goal that an individual is attempting to achieve has both positive and negative features.   Approach-approach conflict: A person wants tow positive situations but can have only one. resulting in poor performance. clashes of values and interests. It exits when the expectations of a job are mutually different or opposite and the individual cannot meet one expectation without rejecting the other. and competing for scare resources. Group conflict Inter-group conflict . perceptions. Avoidance-avoidance conflict: This type of conflict can be resolved because a person faced two negative goals and he may not choose either of them and may simply leave the situation. conflict arising due to divergent goals or conflict arising from out of multiple roles to be played. intra-personal conflict can be related to two things.

work activities. task interdependence. The types of inter-organizational conflict are between management and government.   Conflict Management Conflict has to be resolved as soon as the optimum level is crossed and before dysfunctional consequences start occurring. Line and staff conflict: It refers to conflict between line managers and staff specialists. Intra-organizational conflict Intra-organisational conflict are mainly three kinds:  Horizontal conflict: It refers to conflict between employees of departments a the same hierarchical level in an organization. The sources of intergroup conflict are incompatible goals. resource allocation. perception and attitudes between position holders occupying different levels. Vertical conflict: If refers to any conflict between different hierarchical levels in an organisation. Individuals. Intra-group conflict Intra-group conflict is essentially same as the bases of inter-individual conflict. Dominance through position Quiet often managers use positional authority to fire a lower ranking subordinate they consider to be a trouble-maker. Following are some of the techniques employed to resolve conflict. It occurs usually in superior-subordinate relations. differences in interest. management and management. in organisation. The reasons for vertical conflicts are inadequate communication. Organizational conflict Inter-organizational conflict The bases to inter-organizational conflicts are essentially the same as the bases on interoup conflict. differences in values or perception etc. The groups differ in goals. union and government etc.Every group is in atleast partial conflict with every other group it interacts with. with rare exception. competitive incentive and reward system. recognize and accept the authority of their superiors as an acceptable way or resolving . power and prestige.

If the concern for he self is very high. they would tend to the non-cooperative. an arbitrator can be appoint who can use this expertise and persuasion to achieve coordination and get people together. . If the concern for the other it high. If two parties experience conflicts. In a conflicting situation:     If an individual‟s concern for self and others is low. Although they may not be in agreement with these decisions. they could be very assertive. Departments may be provided with resources that are independent of those provided for other departments. If he has high concern for himself and for others. Conflict Resolution Model Thompson suggested five styles such as competiting. When the concern for „self‟ is very low they could be very unassertive. Liaison groups To arbit differences between two warring factions. Appeals procedures The people in disagreements may appeal to higher authority to help them to arrive at a solution by resolving the problem satisfactorily.conflicts. If he has high concern for himself and low condern for others he will compete. they could be co-operative. avoiding. he will avoid the conflict. the abide by them. Reduce interdependence On way to resolve conflict is to reduce interdependences. If their concern for the other is low. accommodating. If he has high concern for other but low concern for himself. he will accommodate. each one could be more concerned above their own self or could be more concerned for the other. collaborating and compromising to resolve conflicts. he will collaborate.

How to manage conflicts in an organisatoin? . If he has medium level of concern for both himself and the other. High ACCOMMODATE Concern for others COLLABORATE others COMPROMISE AVOID Low Low COMPETE All the five styles have its own advantage and disadvantages and a suitable style depends upon both the nature of the individual and the situational factors. he will go for compromise. 3. Explain „conflicts episode‟. Review Questions 1. What do you understand by „conflicts‟? What are the types of conflicts? 2.

Several thousand. A quality circle has been defined as a “self-governing group of workers with or without their supervisors who voluntarily meet regularly to identify. the most visible and transferable technique seemed to be Q-C groups. recognition etc. It was natural for this group orientation to be expressed in Quality-Control (QC) circles in Japanese industry. to place to high value on group membership.Lesson 16 Quality Circles In Japanese culture. U. When American companies began to look to the Japanese for ways to compete in work markets. Techniques used for Discussion in Quality Circles Brain-storming process . The Japanese end to do things in groups. and control charts to frame a recommendation that can be presented to management. creative and innovative skills through participation. with a view to motivate them To improve various supervisory skills like leadership.S. A group participation proves. include problem solving techniques etc. companies now make use of them. creating and developing work interest. Members of a group choose a particular problem to study. problem solving interpersonal and conflict resolution To utilize individual imaginative. quality circle “typically are small groups of volunteers form the same work areas who meet regularly to identify. To improve quality of products/ services. and to strive to be as cohesive as possible. the group plays a dominate role. analyze. and solve quality and related problems in their area of responsibility. analyses and solve problems of their work field”. Objective of Quality Circles      To develop enhance and utilize human resources effectively. Now groups are trained in communication and problem solving skills and quality/ measurement strategies and techniques. productivity and reduce cost of production per unit of output To satisfy the workers psychological needs for self-urge participation. gather data.

Under this technique complete free environment is created with a view to stimulate creativity and the employees can come out with as many ideas as possible. members of the quality circle observe the events and their consequences in the form of positive or negative results. These techniques will work effectively in attaining the objectives only when the organizational structure of Q-C is sound and systematic. Quality Circle Process Size of the each Q-C select the problem from the operational problems suggested by management or by the members of the Q-C. All members to be encouraged to clarify and build on each others ideas. . They identify the causes and their effects. Cause and effect Under this technique members are asked to find out the causes for the identified problem. After selecting the problem the members analyze it by using the various problem solving techniques. If the solution is accepted it is implemented. cost benefit analysis and merits and demerits of each solution. The next stage is that members select the best solution from among the alternative solutions. They chart out all their observation either in sequence or in some other relationship which gives clear ideal of the problem. Periodic summarizing of the activities by the leader or member to ensure common understanding. Management reviews the solutions and may or may not accept the solution offered by the Q-C members. their effect and consequences on organisation and members. Making Q-C Process Effective The following factors should be recognized and practiced to make Q-C process of effective:    All members should accept that there is more than one way to solve a problem successfully. Sampling and charting methods Under this technique. Then the members develop alternative solution. Later these ideas will be screened and best ideas will be chosen.

 

Avoidance of heated arguments in favour of one particular position. Avoidance of technique such as majority vote to obtain group agreement.

It has been stated in many forums that a major part of he responsibility for quality circles lies with the management than workers. Mr. Ishikawa, during a visit to India in 1987 had remarked that Q-Cs can contribute only about 30 percent to quality improvement and the rest has to be in the form of management efforts. The famous American expert Mr. Deming, after whom, most of the quality awards are given, unhesitatingly says that a major part of the effort towards quality improvement has to come form management. The secret of the success of the Japanese effort has been the continuous modification of their designs to overcome the quality problems faced by the customers and rectify them. This calls for a lot of upstream management and proper tools of analysis to be applied for successful efforts. It is only in a climate of cohesion, mutual trust and understanding that there can be meaningful progress. For this, both managements and trade unions have to work jointly for the common organizational goal. It is not enough if only the management takes upon itself the task of achieving the desired results. It calls for the willing involvement of every section of employees, including those at the grassroots, leading to company wise true participation and open management. Finally, development of the most important of all resources, human resource has to find a place. To achieve the prerequisites for excellence, many organizations are adopting various kinds of management tools in the fond hope of finding a place for all their problems in order to bring in greater involvement of employees in day-to-day affairs. Sweden and Yugoslavia (and some companied in India, too) had experimented with “work place democracy” and “work autonomy” but not with much success. The task before India is to recreate the culture in which a sense of belonging to the organisation is generated among all employees. If has were to happen, managements have to change their age-old attitudes. Management, by itself, without actively involving task performers would not be able to achieve the organizational goals. This would be possible only through a holistic approach towards employees and humanization of work. Enrichment of the “quality of working life” and catering to the self-esteem and recognition needs of employees only would help develop in them a sense of involvement, participation and pride in the organizational progress.

The one road to achieve this goal is the effective implementation of small group activities such as “Employees Participation Circle” (EPC); “Small Group Activities” (SGA) and “Training at Work Teams” (TAWT). In India in the West they are called “Quality Circles”. In Japan and many Southeast Asian countries, the small groups are known as “Quality Control Circles” because they got evolved in the sixties as a result of massive quality control training imparted to the employees. The “Quality Circle” concept comes nearest o satisfying the pre-requisites for developing the capability to face the current and emerging challenges. Its unique features such as voluntariness, bottom up group synergy are now proved to being about tangible and intangible benefits to any organisation, if practiced with sincerity of purpose as adapted to the Indian milieu. The number of organizations implementing quality circles in India has been steadily rising covering both the public and private sectors and government agencies. This scheme will no doubt contribute to the organizational effectiveness and to enhance job satisfaction and sound human relations in all organizations. Review Questions 1. Define the term “Quality Circle”. What are its objectives? 2. Explain the purpose and process of Quality Circles.


Industrial Relations – The tisco experience

The Tata Iron and Steel Co. Limited has a history of successful industrial relations. This is mainly due to the support established between management and labour. TISCO management believes that the human being is the core of the industry. Therefore his needs and fulfillment of his basic necessities were as important as any other consideration in industry such as production and profit. The excellent association of employees with management started with the signing of an agreement by the management and the union way back in 1956. The agreement provided an increasing measure of closer association of the workers with the management in the working of the industry. They believed this would helpa) in promoting increases in productivity for the general benefit of the organisation, the employees and the country. b) in giving employees a better understanding of their role and importance in the working of the industry and in process production; and c) in satisfying the urge for self-expression.
Joint councils and works committees

A series of Joint Councils and Joint Works Committees were subsequently set up. The objectives was to study and advise on the steps deemed necessary for increasing production, improving productivity, discipline, cost, economy, promotion, welfare, encouragement of suggestions, improvement of working conditions, as well as the follow-up action on the implementation of the recommendations and decisions approved by the management from time to time.
The three-tier setup

As already indicated, the close association of employees with management came more into existence with the agreement signed in 1956. The three-tier setup of joint councils consisted of the Joint Departmental Councils (JDCs) at the base. One was set up for each major department and combined ones for two or more smaller departments. The Joint Works Council (JWC for the whole organisation is at the intermediate level. The Joint Consultative Council of Management (JCCM) constituting the apex body. The Joint Councils at their respective levels study operational results and production problems, advise on the steps deemed necessary to promote and rationalize production, improve productivity and discipline and economize costs. Promotions of welfare and

However. the fact remains that. For example the coordination of the functioning of the various JDCs of which there were 41 in 1986. but not those affecting the relations of company with its shareholders and managerial staff. who is also the Chairman of the Joint Works Council. All procedural issues concerning the working of the councils are discussed and settled at this or taxes. The Joint Consultative Council of Management is entrusted with the task of advising management on all matters concerning the working of he industry in respect of production and welfare. This provides an opportunity to the various JDC officials to learn from one another the weaknesses of a particular council and the strong points of others. consumption of materials etc. production in Tata Steel been toe the tune of 100% of the Plant/s capacity. it reached the all-time high figure of more than 105% of the Plant‟s capacity. the Joint Works Councils has the special function of reviewing every month the working of the departmental councils and a few other joint committees like the Suggestion Box Committee. The Council has also to advise management on economic and financial matters placed by management before it. . Achievements It is difficult to measure the success of JDCs in terms of production tonnage or savings in the cost of steel per tone. particularly those referred to it by the Joint Workers Council and follow up on the implementation of its recommendations. is naturally a complex job. during the past several years. By and large. This is sought to be done through an annual meeting of Chairmen. indicate the JDCs are deeply involved with the problem of productivity. It is also attended by the top officials of management and the Union. Canteen Managing Committee and the Safety Appliances Committee. and a review made of the Scheme of Employees Association with Management as a whole. He various improvements suggested in process and procedure elimination of defective work. In addition to these common functions. encouragement of suggestions and improvement of working conditions also fall within the purview of these Councils. the Councils have succeeded in making the employees think about development and improvements. General Safety Committee. import substitution. Vice-Chairmen and Secretaries of al the Councils under the Chairmanship of the General Manager (op). During the year 1981-82. This does not mean that there are no problems in putting through the scheme. These bodies have also to follow up on the implementation of their recommendations and decisions approved by management.

D. Tata: “In 1956. -Mahatma Gandhi . Finally let us end with the opinion of an independent individual: “May I hope that the relationship between the great House of Tata and the Workers will be of the friendliest character.R.The most abiding effect. quite capable of enhanced participation in the management of industry. Our workers. and that both of them will constitute a great family bringing in unity and harmony. of these joint consultations has been the strengthening of the team spirit and of the sense of belonging. we created the consultative machinery which has proved largely responsible for the mutual trust and cooperation we have enjoyed since then. particularly they younger ones. are better educated and trained to understand the technical and managerial problems of industry and are. It is the privilege of both of you…to given India in object lesson in amity and goodwill”. which is responsible for the unique industrial harmony and cordial relationship that prevails between employees and management of Tata Steel since the past 53 years-a record indeed. in consultation with the Union. I have been feeling for some time that we should we take a further step forward in our joint scheme or cooperation”. Yet management is not complacent as is evident from the following wordings of J. however. But we must not be satisfied with what we have done up to now. today. therefore.

MODEL QUESTION PAPER Paper 4. What is employee counselling? What are its objectives? PART – B Answer any FOUR questions All question carry equal marks Question No. State the principles of collective boards? 6. 11. 15. employers and the unions in maintaining smooth industrial relations. 4. Explain the machineries constituted for settlement of industrial disputes. Explain grievance rederssal procedure. (1X 15) = 60 Maximum Marks : 100 (5 X 8 = 40) . Explain the types and management of conflicts. What are the functions of wage boards? 7. What are the objectives and forms of workers‟ participation in management? 14. What are the objectives and functions of International Labour Organizations? 3. 13. What do you understand by industrial relations? What are its objectives? 2.33 Industrial Relations Time : 3 Hours PART – A Answer any FIVE Questions All questions carries equal marks 1. What are the problems of trade unions? What are your suggestions for its effective functioning? 12. Explain the relevant provisions of Constitution in protecting the labour. Explain the role of Government. 15 is compulsory 9. 10. What are the principles of code of discipline? 5. Explain the purpose and process of Quality Circles. What are the objectives employee education and training? 8.


C. Bhagoliwal T. & Arya P P. 5. New Delhi. Tripathi S. S. “Personnel Management and Industrial Relations”.D. Deep & Deep Publication. “Personnel Management and Industrial Relations”. 3. “Trade Union – Management Relation in India”. New Delhi. “Personnel Management and Industrial Relations”. Vikash Publications. 6. Tripathi P. “Dynamics of Industrial Relations”.S. Mumbai.K.K. N. New Delhi.. & Punia B. “Personnel Management and Industrial Relatoin”. Kapur S. . 4. K. Sultan Chand and Sons. Himalaya Publishing House. Publishers. Daver R. New Delhi.BOOKS REFERRED 1. Sahitya Bhawan. Agra. Mamoria C B & Sathish Mamoria. 2.