Upload
saikrishnabachuwar
View
167
Download
5
Embed Size (px)
Citation preview
INTRODUCTION
The concept of industrial relations means the relationship between employees
and management in the day-to-day working industry. But the concept has a wide
meaning. When taken in the wider sense, industrial relations are a "set of functional
interdependence involving historical, economic, social, psychological, demographic,
technological, occupational, political and legal variables".
According to Dale Yoder, industrial relations are a whole field of relationship
that exists because of the necessary collaboration of men and women in the
employment process of an industry. The concept of industrial relations has been
extended to denote the relations of the state with employers, workers, and their
organizations. The subject therefore includes individual relations and joint
consultations between employers and work people at their work place collective
relations between employers and their organizations and trade unions and part played
by the state in regulating these relations.
Definition and concept of Industrial Relations
The term ‘Industrial Relations’ comprises ‘Industry’ and ‘relations’. Industry
means “any productive activity in which an individual is engaged”, and relations
mean “the relations that exist in the industry between the employer and his
workmen.” Observers like Dr. Kapoor say, “ Industrial Relations is a developing and
dynamic concept and as such no more limits itself merely to the complex of relations
between the unions and management but also refers to the general web of
relationships normally obtaining between employees- a web much more complex than
the simple concept of labor capital conflict.”
Different authors have defined industrial relations in somewhat different way.
Below are given some oft-quoted definitions:
1
Industrial relations are a multidisciplinary field that studies the employment
relationship. Industrial relations is increasingly being called employment relations or
employee relations because of the importance of non-industrial employment
relationships; this move is sometimes seen as further broadening of the human
resource management trend. Indeed, some authors now define human resource
management as synonymous with employee relations. Other authors see employee
relations as dealing only with non-unionized workers, whereas labor relations is seen
as dealing with unionized workers. Industrial relations studies examine various
employment situations, not just ones with a unionized workforce. However, according
to Bruce E. Kaufman "To a large degree, most scholars regard trade unionism,
collective bargaining and labor-management relations, and the national labor policy
and labor law within which they are embedded, as the core subjects of the field."
Initiated in the United States at end of the 19th century, it took off as a field in
conjunction with the New Deal. However, it is generally a separate field of study only
in English-speaking countries, having no direct equivalent in continental Europe. In
recent times, industrial relations have been in decline as a field, in correlation with the
decline in importance of trade unions, and also with the increasing preference of
business schools for the human resource management paradigm
Industrial relations has three faces: science building, problem solving, and
ethical. In the science building phase, industrial relations is part of the social sciences,
and it seeks to understand the employment relationship and its institutions through
high-quality, rigorous research. In this vein, industrial relations scholarship intersects
with scholarship in labor economics, industrial sociology, labor and social history,
human resource management, political science, law, and other areas.
2
Industrial relations scholarship assumes that labor markets are not perfectly
competitive and thus, in contrast to mainstream economic theory, employers typically
have greater bargaining power than employees. Industrial relations scholarship also
assumes that there are at least some inherent conflicts of interest between employers
and employees (for example, higher wages versus higher profits) and thus, in contrast
to scholarship in human resource management and organizational behavior, conflict is
seen as a natural part of the employment relationship. Industrial relations scholars
therefore frequently study the diverse institutional arrangements that characterize and
shape the employment relationship—from norms and power structures on the shop
floor, to employee voice mechanisms in the workplace, to collective bargaining
arrangements at company, regional, or national level, to various levels of public
policy and labor law regimes, to "varieties of capitalism" (such as corporatism, social
democracy).
When labor markets are seen as imperfect, and when the employment
relationship includes conflicts of interest, then one cannot rely on markets or
managers to always serve workers' interests, and in extreme cases to prevent worker
exploitation. Industrial relations scholars and practitioners therefore support
institutional interventions to improve the workings of the employment relationship
and to protect workers' rights. The natures of these institutional interventions,
however, differ between two camps within industrial relations. The pluralist camp
sees the employment relationship as a mixture of shared interests and conflicts of
interests that are largely limited to the employment relationship. In the workplace,
pluralists therefore champion grievance procedures, employee voice mechanisms such
as works councils and labor unions, collective bargaining, and labor-management
partnerships. In the policy arena, pluralists advocate for minimum wage laws,
3
occupational health and safety standards, international labor standards, and other
employment and labor laws and public policies. These institutional interventions are
all seen as methods for balancing the employment relationship to generate not only
economic efficiency, but also employee equity and voice. In contrast, the Marxist-
inspired critical camp sees employer-employee conflicts of interest as sharply
antagonistic and deeply embedded in the employment relationship gives too much
weight to employers' interests, and instead deep-seated socio-political-economic
system. From this perspective, the pursuit of a balanced structural reforms are needed
to change the sharply antagonistic employment relationship that is inherent within
capitalism. Militant trade unions are thus frequently supported.
4
NEED OF THE STUDY
Any organization to be effectively performed should have sound Industrial
Relations. A sound Industrial Relations comprises..,
1. Congenial relations between employees and employer.
2. Congenial labor management relations
3. Minimized industrial conflicts
4. Highly developed trade unions
5. Contribution to the organizational objectives
With respect to all these requirements an IR has to be maintained. As the contribution
of IR is vast there is a definite need to undertake a study to assess and to develop the
given requirements.
OBJECTIVES OF THE STUDY
1. To find the nature of relationships in and between different organizational
levels.
2. To assess the relationship between Employees, Unions and Employers.
3. To offer suggestions for improvement of industrial relations in SHIV
SHAKTHI Textiles
4. To offer suggestions by assessing the industrial democracy.
5. To promote and develop congenial relations between employees and
employer.
SCOPE OF THE STUDY
1. Relationship among employees, between employees and their superiors or
managers in and between different organizational levels.
2. Collective relations between trade unions and management
5
Methodology:
1. Any discipline whether small or serious will generally been noticed by the line
supervisory. It can be cither behavior in discipline or violation of production
norms
2. A communication to that effect will be written in the prescribed Performa
3. By the true supervisor where he will narrate the incident of the/nature of the
indiscipline, the worker is indulged, in a send to the head of the department.
The head of the department then goes through the complaint and conducts the
preliminary enquiry. He writes his comments over the seriousness of the
indiscipline and his name is sent to the two general managers. The head of the
department will not comment over the proposed action of the punishment.
4. SGMW and SGMT in consideration with the SDGMP, taking into
consideration the prevailing situation with regard to the industrial relation,
union management relation and the employees (against whom the complaint
has made) behavior with his past records, will decide the proposed action
against the employer indulged in discipline.
Research measuring tools
To carry out the above laid research design and to collect data in the
prescribed manner, we have to use a tool that facilitates our study. As we cannot take
all employees into consideration certain sample of staff and workmen is considered.
Sampling: To best suit this study a stratified sampling is undertaken. As per the
company’s requirement the following sampling plan is designed.
Sampling plan: The employees come to plant in 4-shifts viz., A-shift, B-shift, C-shift
and one General shift. . There are 6 departments
6
Sampling size:
The sample size for workmen level is 30
The sample size for staff level is 20
Thus the total sample size is 50
Research Design
This study on Industrial Relations has been carried out at SHIV SHAKTHI
Textiles’ manufacturing plant, Medak Unit. A certain sample of workmen and staff
has been chosen for the process. The views of staff and workmen have been extracted
separately with the help of a pre-devised questionnaire. And in the due process of the
study a detailed analysis has been done on the responses given by them.
Data collection method
The data collected to carry out the study involves two types of data.
Primary Data: The primary data has been collected from the employees. This data
helps most for the completion of the study by providing full and direct information,
which needs some interpretation and analysis, to attain the objectives of the study.
Secondary Data: This secondary data has been collected from various sources such
as books, journals, magazines and sites. Although the data collected or gathered from
these sources neither participate directly in the analysis nor influence the outcomes.
This forms a basis for an effective approach in making a report of what has been
studied. This data forms a part of the report and facilitates to acquire pre-requisite
knowledge regarding the study under consideration.
Data collection tools
To collect the above-mentioned primary data, the following tools can serve at its
best:
7
Personal Interview: The employees under consideration have been interviewed
personally to get the desired responses by asking questions. And those responses were
noted.
Structural Questionnaire: The questionnaire consists of a set of close-ended
questions, which arc orderly arranged to extract the best from employees. In this
study we make use of the questionnaire, for collecting the responses of workmen
level and staff level separately.
PERIOD OF THE STUDY :
Since so many years “SHIV SHAKTHI TEXTILES, Hyderabad”
has been following the same procedure of INDUSTRIAL RELATIONS for their
executives and employees and 45 days for the study of my project last one-year data
has collected.
SOURCE OF DATA:
The study is based on primary as well as secondary data collected from
different sources:
A). Primary Data:
The primary data is collected with the help of questionnaires, which
consists of twenty questions each. The questionnaires are chosen because of its
simplicity and liability. Researcher can expect straight answers to the questions
B). Secondary Data:
Secondary data is collected through the documents provided by the personnel
department. The documents include personnel manuals, books, reports, journal, etc.
8
HYPOTHESIS
Definition:-
It’s nothing but weather to know the given statement is TRUE or FALSE
about the population characteristic overall statement.
It is known fact to all that keeping employee happy is managements responsibility as
to get the work done perfectly but to feel happy is employee’s perception. So a
satisfied employee is essential element for improving efficiency effectiveness
Industrial relations among the employee in resulting in increasing the
perception of the organization
The relationship between Employees, Unions and Employers.
H0: (Null Hypothesis): The employees of shiv shakthi textiles are not satisfied with
their working environment.
H1: (Alternative Hypothesis): The employees of shiv shakthi textiles are satisfied
with their working environment.
9
LITERATURE REVIEW
According to the ILO, “Industrial relations deal with cither the relationships
between the State and employers' and workers’ organization or the relationship
between the occupational organizations themselves. The ILO uses the expression to
denote such matters as freedom of association and the protection of the right to
organize, the application of the principles of the right to organize and the right of
collective bargaining, collective agreements, conciliation and arbitration and
machinery for cooperation between the authorities and the occupational organizations
at various levels of economy.”
“The concept of industrial relations has been extended to denote the relations
of the State with employers, workers and their organizations. The subject, therefore,
includes individual relations and joint consultation between employers and work
people at their work place; collective relations between employers and their
organizations and trade unions and the part played by the State in regulating these
relations."
Thus Industrial Relations may be defined as: “The relations and interactions in
the industry particularly between the labor and the management as a result of their
composite attitudes and approaches in regard to the management of the affairs of the
industry, for the betterment of not only the management and workers but of the
industry and natural economy as a whole.”
Industrial relations are an age old subject and its origin does back to seventieth
century. Industrial Revolution brought about transformation in the economic and
social life of people, it started in UK and then spread to France, Germany and the
USA. This period from Industrial Relations perspective was marked by the studies
made by Taylor and his Principles of scientific management. During this time series
10
of events took place which brought about innovation and technology in the factories
replacing manual labor and redefining the man – machine relationship. The concept of
factory came into existence and many experiences were conducted. It also brought
about the concept of a free labor market. Earlier the supply side was governed by
some groups and unions and the market were generally held by master craftsmen.
This chapter provides insights on the various literatures published in the area
of Industrial relations. An extensive literature search has been conducted
encompassing publications of the Government of India, International Labor
Organization, and relevant books pirating to the subject of Industrial Relations &
human resources and from other 41 relevant publication’s in the field of IR. This
chapter provides an insight on the published literature in relation to industrial relations
especially with a focus on the changes and dynamics impacting the industrial relations
in the post liberalization of the Indian economy since 1991.
According to David E. Guest (1987), that if the concept is to have any social
scientific value, it should be defined in such a way as to differentiate it from
traditional personnel management and to allow the development of testable
hypotheses about its impact. On the basis of theoretical work in the field of
organizational behaviour, he proposed that HRM comprises a set of policies designed
to maximize organizational integration, employee commitment, flexibility and quality
of work. In this model, collective industrial relations have, at best, only a small role.
As per Peterson Swenson (1991), political domination of Social Democrats in
Denmark and Sweden beginning in the 1930s was stabilized by the absence of intense
opposition by capital to reformist programs aggressively opposed by business and the
Right elsewhere throughout world. It is not a symptom of weakness or dependency;
rather, it was a product of a class-intersecting, cross-class alliance behind institutions
11
of centralized industrial relations that served mutual interests of scrotal groupings
dominating both union and employers. He further suggested that well-organized and
militant, and backed by 42 Social Democrats, employers in the two countries uses
offensive multi industry lockouts to force centralization on certain reluctant unions in
industry.
Researcher has to say that as mentioned by potentially dynamic and proactive
role of employers in industrial relations need to be recognized because incorporating
the notion of strategic human resource management appears consistent with this
suggestion, it is done here integrating frameworks of competitive strategy and human
resource management practices using the rationale of needed employee role behaviors
and cost and market conditions. It is then need to be merged with business life-cycles
stages creating a contingency framework to understand the impact of strategic human
resource management on industrial relations.
As in the study of impact of China’s latest reforms on industrial relations at
enterprise level in both state-owned firms and foreign-invested joint ventures. Also
they suggested that the reforms of the early 1990s here’re-invented’ the Industrial
Relations system and have significantly influenced recruitment and selection, wage
and reward systems, and social security programmers.
It is time to renegotiate the boundaries between industrial relations theory and
feminist analysis as far as Britain is considered. He feels the need to add women
issues to the research agenda, to recognition of the gendered character of 43
employment relations and of work itself. The formal institutions like management,
trade unions and the state, cannot be treated as gender neutral.
Paradigm Shift in IR
12
That the old system is replaced not by the market but by an employment rights
regime, in which the rules of the workplace are imposed by law, judicial opinions, and
administrative rulings, supplemented by mechanisms at the enterprise level that are
responsive to the law but also are susceptible to employee pressures, both individual
and collective. This shift in the axes of mobilization in turn reflects the collapse of the
underlying model of social and economic organization upon which the collective
bargaining regime was built and more fundamentally a shift in our understanding of
the nature of industrial society and its direction of evolution in history. It poses a
challenge to the conceptual tools which are used in industrial relations to understand
the issues of work and to frame the public policy debate. They also argue that, the old
system need to be continued. They claimed that, the commitment to building a
discipline that speaks not only to scholars but to practice and to practitioners is what
distinguishes industrial relations most from other scholarly endeavors. Furthermore
they concerns underlying the field's commitment to trade unions and collective
bargaining which compel to recognize those new forms and develop the analytical
tools required to 44 understand, evaluate, and help them find effective expression in
practice and in action.
Those industrial relations are seen as an increasingly important subject as a
result of extent of news coverage, the results of opinion polls and by the growth of
university courses in this area. He argues that, rules are considered an intermediate
step towards the true objectives as increased labor-related productivity, increased
satisfaction of those needs which oblige people to take jobs, and increased power in
the work environment. He states that, the first objective is sought by managers and the
government, the second by workers and trade unions, and the third by managers and
some work groups and trade unions.
13
The comparative work on industrial relations reform during 1980s and 1990s
in Australia and New Zealand, has systematically ignored important historical
differences between the two countries, underestimated the similarities in recent
reforms and privileged organizational and institutional explanations for changes in
industrial relations systems, at the expense of those which are based on systemic
factors and material interests. He also argues that more serious attention needs be
given to the epistemological assumptions embedded in research designs.
In view of Harry Katz, Thomas Kochan and Mark Weber (1985), that attention
need to be given to the relationships among characteristics of industrial relations
systems and efforts to be put to improve the quality 45 of working life. They states
that, industrial relations systems affect organizational effectiveness through two
channels. One is strong evidence of an association between measures of the
performance of industrial relations systems and economic performance. Another is
evidence that efforts to improve quality of working life have little impact on
economic performance.
Behavioral Perspective of IR
It examines the field of industrial relation form behavioral science viewpoint.
The world of industrial relations has grown rapidly and has become complex with the
development of industrial society. He argues that industrial relation at present
situation is more concerned with studying the resolution of industrial conflicts than
with its generation. Thus focus need to be given more on the consequences of
industrial disputes than its causes.
In the study of Raymond Adamson (1989) studied of industrial relations climate.
They defined Industrial relations climate as a subset of organizational climate that
14
pertains to the norms and attitudes reflecting union-management relationships in an
organization.
As in Australia, there is a renewed interest in individualism as an organizing principle
in the employment relationship. The State and Commonwealth legislative
encouragement of individual contract formation, along with the diffusion and
adoption of individualistic HRM techniques have fuelled the perception that collective
industrial relations are consciously and systematically being replaced with newly
individualized employment relations. He argues that whilst collective forms of
industrial relations remain dominant, there is evidence of growing trend towards
individualism in Australian industrial relations policy and practice. In terms of
contractual individualism, he discovered that an increasing number of Australian
employers are engaging in procedural individualism by forming and registering
individual contracts. He argues that despite the increasing incidence of individual
contracts, they continue to cover a minority of Australian workers-collective
bargaining remains the predominant mode of establishing wages and conditions in
Australia.
15
Extended Scope of IR
Hyson Lee (1996) states that, Production, Distribution and Rule making
systems (PDR systems) are subsystems of industrial relation system. The performance
levels of the organization are determined by the contents and interactions of the PDR
systems as productivity, 47 flexibility, innovation, fairness and satisfaction. The
model can be used to analyze non-union workplaces as well as unionized settings by
embracing collective bargaining as a subsystem of the rule-making system. A good
practice of future industrial relations will be established by the PDR systems in which
the creative human ware is maximized and actors cooperative spontaneously. He
views that industrial relation as including human resources issues as a synthesis of
production, distribution and rule-making systems encompassed in a community
perspective. He states that Industrial relation theory needs to differentiate primary
environmental factors and secondary environmental factors, and indirect strategic
choices and direct strategic choices for industrial relations. His model demonstrates
that, since it emphasizes the mind stimulation system, mutual gains in the future
depend on the actors’ spontaneous cooperation which will require a mix of both union
negotiations and direct worker involvement. The combination can avoid the criticisms
of a company union and the adversarial conflict that destroys the potential for mutual
gains between two.
According Subba Rao (2012), Provision of welfare amenities enables the
workers to live a richer and more quality life and thereby contributes to their
efficiency and productivity. It also helps to maintain industrial peace. Also increased
productivity of an industrial undertaking, indisputably, results from mental happiness
of employees. He states that mental happiness of an employee in turn is a function of
welfare facilities provided by the employer. They explains that welfare facilities make
16
the life of the employee comfortable and happy and the labor welfare covers a broad
field and connotes a state of well-being, happiness, satisfaction, conservation and
development of human resources. They studied that there were lot of strikes and
lockouts taken place in Jute Industry which is one of the traditional industries which
lost huge number of manly hours, loss of productivity due to poor industrial relation.
They say that welfare facilities, undoubtedly, have their impact on industrial relations
in post liberalization.
Contribution of IR
In study of U. M. Premalatha (2012), industrialization results in growing
productivity and profitability. The success of the industry and economic development
depends on smooth and healthy industrial relations. Author studied industrial relation
and examine the different machinery for the settlement of industrial disputes if any
and there by focusing on workers participation in the management. He proves that
cordial and harmonious industrial relations leading to increase in productivity and
profitability. Also Education, training and development of employees are necessary as
a part of effective participation while making decisions. He suggest that a constant
review or follow up of results of the industrial relations programmers adds value to
the everlasting association by increasing the productivity and profitability of the
nation in general and organization to be specific.
According to Vijaysinh M. Vanar (2012), industrial relations basically aim at
the development of a sense of mutual confidence, dependence and respect among all
the employees of an industrial unit at different levels of organization. He attempted a
study on the status of industrial relations in engineering sector in Gujarat. He put
hypothesis as for the study that the status of industrial relations is significant among
certain selected units. He found that contractual employees, employees who are not
17
member of union, and shop floor employees have responded less positively to the
industrial relations status at their respective organizations. He also found that
employees of private limited 50 companies have positively responded for the status of
industrial relations at their respective organizations.
In view of Thomas Klikauer (2004) examines the industrial relations in the
shipping industries of two Liberal Market Economies (LMEs), Australia and the
United States and in two Coordinated Market Economies (CMEs), Germany and
Denmark. He used the theory of Liberal versus Coordinated market economies to
discuss two polar approaches to the issue of reform in industrial relations in the
context of pressures of globalization. He assessed the scope to which local
institutional factors offset the major trend towards the globalization of the shipping
labor market. He discussed the role of state policies on shipping, trade unions, and
employer organizations. He argues that in shipping two distinctly different policy
approaches and reforms of industrial relations at the industry and national levels can
be identified. He stated that neither the CME's nor the LME's approach to
employment and industrial relations were able to stop the increased appearance of
crews of convenience under globalization. He stated that introduction of second
registers by the CMEs protected the core employment in off-shore shipping in some
extent because masters, captains, and officers have received limited protection by
being on such registers. At another side neither LMEs nor CMEs have been able to
stop increased competition in ocean going shipping, LMEs have exposed their
shipping industries to these forces without protection, where CMEs have sought to
protect core sections of offshore employment in same. He found that the two CMEs
achieved this by a 51 coordinated approach to industrial relations policy in shipping
industry. Put together he found that ,all four countries were faced with the same
18
competitive forces brought to them by globalization in the world shipping industry,
the two coordinated market economies maintained their competitiveness by
developing innovative employment strategies that protected core employment while at
the same time securing the continuation of their industrial relations coordinated
pattern.
Empirical Evidences in IR
In the paper industry to illustrate changes taking place in United States
industrial relations. They replaced the traditional collective bargaining model in some
cases by a low-wage, adversarial approach and in other cases by a high-wage, more
cooperative model. They found that the cooperative approach is superior to the
adversarial approach in terms of both productivity and worker welfare. This labor and
management cooperation assumes an expanded role for unions in reducing the
differences between labor and management of organization. They found that the
National Labor Relations Act hinders American industry from effectuating
cooperative, high performance policies. They argue that reform is needed to
encourage better employee and management relations.
The effect of privatization of public enterprises on industrial relations practice in a
mixed recessional 52 economy. This view was put to ascertain the economic effect of
privatization on labor and management relations in Nigeria country. He adopted
qualitative approach for his study. He found that public enterprises in a recessional
economy does not create enabling environment for harmonious labor and
management relations. Also he found that, though privatization policy implementation
enhances efficiency and improved workers performance, however, retrenchment and
job insecurity of the workers are always the resultant effects of any privatized public
19
enterprises. He recommended that privatization policy implementation should be
normally being designed to guarantee workers job security, while pragmatic efforts
towards sustaining the level of efficiency and productivity attained by the privatized
public enterprises should always be given more priority. He argues that the basic
objectives of privatization can be satisfied by Commercial. He classified public
enterprises different groups, as, the directly productive, public utility and the service
or welfare public enterprises (the last being scholarship, pilgrims, sports and similar
boards). He suggests that the directly productive ones like financial, manufacturing,
agricultural and similar public enterprises will be required to operate strictly on the
basis of financial profitability by charging competitive prices. Further, the public
utilities will also be required to be commercial in operation, but where they are
required to serve special areas or groups on a non-competitive basis, they should be
given specific subsidy. Also he suggests that the service or welfare public enterprises
should operate on the basis of cost-effectiveness and need 53 to be funded from public
funds. Further he argues that, for these public enterprises to operate successfully on a
commercial basis, the Privatization of Public Enterprises Acts should be amended
accordingly to remove then shortcomings in terms of unemployment, workers
alienation and victimization that per vade the environment of privatized public
enterprises concerned in Nigeria. The way include funding or capitalizing them
adequately, freeing them from crippling civil service control by giving them
appropriated operational autonomy, allowing them free hand to utilize the best staff
available and generally removing all political interference from their routine
functioning. He suggests removing the causes of failure of public enterprises which
includes pervasive corruption with impurity. Also institutional superiority of private
sector over public enterprises is false justifying privatization. He suggests that
20
operational autonomy should be promoted in both public and privatized public
enterprises in order to enhance increased productivity of the privatized enterprises in
Nigeria.
Ray Marshall (1992), found that basic United States industrial relations
policies are rooted in the mass production-natural resource economy that made the
United States the world's leading industrial nation during the first quarter of 20th
century. He found that in a competitive global economy, economic viability requires
much greater attention to quality, productivity, and flexibility. To develop high-
performance production systems, government must perform role like to develop a
consensus that the United States national economic goal is to remain a world-class,
high-income, democratic country. Further he suggests that 54 strategies need to be
developed to achieve supportive macroeconomic policies to encourage economic
growth, active policies to include labor standards as part of the rules governing all
international transactions, measures to strengthen human resource development for
workers that did not attend college, and workers right to organize and bargain
collectively needs to be strengthened.
The relationship among characteristics of industrial relations systems, attempts
to improve the quality of working life, and certain measures of organizational
effectiveness in 25 manufacturing plants affiliated with one company. They
developed the theoretical propositions relating variations in the performance of
industrial relations systems among plants to variations in organizational effectiveness
among plants. They found that there is an association exists between measures of the
performance of industrial relations systems and economic performance, and efforts to
improve quality of working life have little influence on economic performance.
21
The involvement of civil society organizations (CSOs) in UK industrial
relations. Organizations of this type, includes advocacy, campaigning, identity and
community organizations have attracted increasing attention from employment
relations scholars in recent years. They demonstrated that civil society organizations
have become increasingly active in the sphere of work and employment, partly in
response to 55 trade union decline but also owing to political opportunities, afforded
by the labor market policy of the New Labor government in UK. They claim that civil
society organizations operate at multiple levels of the industrial relations system and
interact with the state, employers and trade unions.
It identifies the theoretical and policy foundation for the field of industrial
relations where labor is embodied in human beings and is not a commodity and argues
that the field’s two central dependent variables are labor problems and the
employment relationship. Further he develops a theoretical framework that not only
explains the nature of the employment relationship and labor problems but also
reveals shortcomings in related theories from labor economies and human resource
management. He demonstrated that optimal economic performance occurs in a mixed
economy of imperfect labor 56 markets and organizations, and shows that a certain
amount of labor protectionism promotes economic efficiency and human welfare.
The evolution of industrial relations in an historical and structural context in
India. The evolution of industrial relations has been incremental and adaptive and not
discontinuous and revolutionary in India. He found that the relationship between
changing industrialization strategies and industrial relations institutions and practices
in India is considerably more subtle than is often supposed in comparative industrial
relations narratives, especially when detailed endogenous political economy
considerations are taken into account.
22
Dimensions of IR across the World
It assesses current trajectories of change in the German system of industrial
relations by analyzing the codetermination and collective bargaining systems. He
argues two parallel developments which undermine the institutional stability of the
German model. Among them the first is the institutional base of the German industrial
relations system, which has served as the precondition of its past success has been
shrinking during the last two decades and the second is increasing decentralization
pressures within collective bargaining tend to undermine the division of labor
between co-determination and collective bargaining. 57 Simon Clarke, Chang Hee
Lee, Do Quynh Chi (2007) studied the industrial relations in Vietnam. During 1990s
Vietnam has achieved rapid economic growth based on the attraction of foreign
investment in an unchanged political environment. They found that changing
employment relations have presented a major challenge to the rightsbased institutional
forms of regulation of industrial relations established in the early stages of reform,
which prove slow to adapt to the new circumstances where disputes are interest-
based. They found that the continuous strikes has led the authorities to pay increasing
attention to industrial relations issues, but their approach remains confined within the
legalistic framework. Also trade unions show little ability to stand up to employers on
behalf of their members.
Colin Duncan (2001) assessed British public sector reforms for twenty years
along with trade union responses and future prospects for industrial relations in the
public services. He highlighted the limitations in the perspectives that have driven
reform processes in labor practices and in the outcomes achieved. He found that the
process of convergence that is often assumed to have occurred between public and
private sector industrial relations arrangements may be more apparent than real.
23
D.H.T. Walker, R.J. Peters, K.D. Hampson, M.J. Thompson (2001) outlines
how the project agreement operating on the Australian 58 National Museum project in
Canberra, Australia facilitated a responsible and responsive workplace environment
for construction workers. The approach is adopted to encourage industrial relations
innovation in the workplace. This approach based on the success of the alliancing
working arrangements between key project delivery teams and a desire to extend this
arrangement to subcontractors, suppliers and the workforce. They found that the
workplace culture and characteristics of relationships formed between workers and
management on that site shaped the agreed terms and conditions of work. They also
studied the pursuit of innovative approaches to project delivery from a technology,
management and workplace culture perspective.
Anne Forrest (1993) studied the focus of feminist approach on industrial
relations as conceptualized and practiced by academics in Canadian business schools
where systems theory remains the predominant analytical approach. He found that
industrial relations so constructed are profoundly gender bias. He found that industrial
relations also growing with academic discourse in the social sciences field. There was
little attention to women issues such as maternity leave, sexual harassment policies,
pay equity, and other issues. He found that gender relations approach was missing. He
argues that organizations must come out the concept of gender biasness and need to
give equal importance to women. Also there is a need to give importance to women in
workplace according to their need and priorities.
John Rice (2006) studied the emergence of a new system of industrial relations
in Taiwan. He emphasises the transformation from a planned one-party state to
democracy has occurred in the context of political, economic and social liberalization.
The issues like increasing plurality of labor organizations are studied.
24
Daniel Mitchell (1994) studied that industrial relations systems provided the
intellectual basis for other works associated with the InterUniversity study of Labor
Problems in Economic Development, notably Industrialism and industrial man. He
given reference to Dunlop theory regarding Great depression and World War II and
criticised that the nation can hardly be expected to endure an unending stream of
depressions and world wars simply to replenish the supply of industrial relation
academics because the events affect decline after 1958. He found that unionization
has fallen dramatically in the United States and, to a lesser extent, abroad, especially
in the private sector. He argues that people do not much care about the industrial
relations system unless it makes dramatic trouble, such as strikes. He also found that
human resource management has become the dominant approach for applied
academics, even it is too narrow.
Susan Sayce (2006) has attempted to move the theoretical discussion of
gender away from universal systems theories of analysis to a more micro multi-
layered approach that can accommodate what is a complex and subtle situation,
gendered industrial relations. He studied that why 60 women in certain institutional
frameworks progress while rest do not. He studied women's daily experiences of work
relationships. He found that Bourdieu's theory can be successfully used to analysis
gender change within industrial relation and to explore how women's differing access
to capital can facilitate their positional progress within hierarchical gender stratified
industrial relations. But he did not focus on solutions for improving the position of
women within industrial relations. Also focus is not to seek to stimulate discussion
around the positional requirements of industrial relation actors where greater social,
economic, cultural and symbolic capital has accrued mostly to men.
25
According to Anne Forrest (1998), the systematic neglect of unpaid work is a
troubling theoretical problem for researchers interested in the subject of women and
work, most obviously because women perform many hours of unpaid work in the
household every day even when they are employed for pay, but also because women
routinely perform unpaid work on the job. Also cleaning, caring, and serving others
are tasks expected of women in the home and in the paid workplace whether or not
they are part of workers formal job descriptions. Author argues that the prevailing
theoretical framework that marginalizes women by examining how unpaid work on
and off the job is and is not analyzed in the literature and by demonstrating its
importance to issues as central to the discipline as wages, job allocation, an industrial
conflict. He also tried to study the unpaid work in industrial relations. He argue that
unpaid work in the home determines, in part, how paid work is allocated and, in
particular, how the social construction of women as non-workers or wives and
mothers by researchers naturalizes women's place in the secondary labor market. He
also found that marriage had little effect on the amount of housework performed by
men whereas, for women, marriage was associated with an additional 10 hours per
week. Also household labor time increased for both women and men when children
were present but double for women compared to men.
P.K. Edwards (1995) found that industrial relations in Britain are healthy that
US. This is because the way in which the human resource management challenge was
met and the intellectual development of the subject from old industrial relations
towards a deeper analysis of the employment relationship.
IR and Other Areas of HR
Ali Dastmalchian and Paul Bytom (1992) examines the relationships between
organizational structure - formalization, specialization, participation, and
26
centralization - and human resource practices - training and internal promotion - with
the state of the firm's industrial relations. They interviewed managers and union-
employee association representatives from 51 Canadian organizations and found that
decision-making centralization has a negative effect on a firm's industrial relations
situations while training has a positive effect on the quality of a company's industrial
relations. They suggested that 62 structures, for example specialization, develop in
response to current and past industrial relations situations.
Olusoji James George, Oluwakemi Owoyemi and Unche Onokala (2012)
examine the transfer of the British voluntarism employment relations practice to
Nigeria through colonialism; this transferred employment or industrial relations
replaced the Nigerian Paternalistic employment relations practice. They studied
descriptive and historical sources explored the impact of culture on the transfer of
management practices with special reference to employment/industrial relations
practice. They found that all groups of people no matter how uncivilized have their
own management practices built around their culture and that it will be problematic to
devised a template of any management practice in a cultural area with the intention of
transferring such to another cultural area.
According to S.K. Khurana (1972), evaluate the industrial relations in private
and public sector in India. He makes the comparative study of industrial relations in
the two sectors on the basis of the criteria of industrial conflict, implementation of
code of discipline and several antecedent variables that have an important bearing on
industrial relations. He found that industrial relations in both the sectors have
progressively deteriorated during 1962-1968 and that the public sectored registered a
better performance on the criterion of industrial conflict but when viewed in the
27
context of its performance in terms of the tripartite forums, the code of discipline and
the prevalent attitudinal climate it has been no different from the private sector.
Anthony Giles (2000) states that the decline of IR within the university
setting, has taken two principal forms. First is, there has been an attrition in the
number of independent IR institutes and degree programmers, either through
abandonment or by being renamed Human Resource Management or Employment
relations in the US. Second one is that, there has been a marked shift in the centre of
gravity within business and management programs away from IR and towards human
resource management. He thinks that although other aspects of the changing face of
work and employment have also received considerable attention which includes the
various forms of non-standard or peripheral employment, work in the services sector,
and globalization as it is the belated rediscovery of management and the workplace
that has increasingly become the leitmotif of modern industrial relation research.
Christopher O. Chide and Oluseyi A. Shadier (2011), investigates the
influence of host community on industrial relations practices and policies using
Angara community and Power Holding Company of Nigeria (PHCN) PLC as a case.
They hypothesized that PHCN industrial relations policies and practices are
independent of its host community and tested the things as PHCN industrial relations
policies are influenced by public opinion through the use of suggestion schemes and
customs/traditions of host community influence PHCN industrial relations policies.
They found that there is an inclusive stakeholders’ approach often used in resolving
matters of mutual interest involving host community and PHCN. They also suggested
the 64 inclusion of the host community as one of the actors in industrial relations.
John Godard and John Delaney (2000) studied that several leading U.S.
scholars have advanced a new industrial relations paradigm, according to which high-
28
performance work and human resource management practices have replaced unions
and collective bargaining as the innovative force in industrial relations. They
identified critical aspects of the literature on the subject and several criteria such as
industrial democracy that need to be used in addition to measures of firm performance
in evaluating the new paradigm are suggested.
Nina Yang (2013) studied a comparative approach to identify and address
some current trends in unionization and cross-cultural variation in collective
bargaining, with special attention to socioeconomic changes and their impacts on
union density rates in different economic sectors, societal norms about organized
labor, and emerging shifts in collective bargaining coverage and grassroots tactics. He
examine key issue such as cultural values, different concepts and ideologies about the
labor movement, and unions responses to economic globalization, privatization, and
market liberalization, which tend to undermine their bargaining power and
recruitment. He found that trade unions have been declining in most industrial
societies, largely due to the economic shift from manufacturing oriented to the
traditionally non-unionized service sectors, coupled with the relocation of numerous
blue-collar jobs to 65 overseas operations. In contrast he found that, globalization and
rapid industrialization have led to the growth of trade unions in some emerging
markets, particularly expanding into the private and foreign owned sectors. He argues
that unions adaptation in fast growing economies such as China presents an
unprecedented opportunity to establish collective bargaining as an effective tool of
labor market governance and for organizational justice.
Kan Wang (2008) studied the evolution of Chinese industrial relations after
the market reform of 1978, while basing its arguments and conclusion on analysis of
the interactions of key actors in the labor arena in China. He found that in the
29
evolution of industrial relations transnational capital and the emergence of self-
organized protests by migrant workers. He stated that globalization has introduced the
civil society movement to China, which has given rise to an increasing number of
NGOs working for labor rights. He found that tight financial and technical
connections between grassroots NGOs and international donor organizations make it
possible for bottom-up labor activities to counteract the unilateral influence of the
state and market over the Chinese workforce. He argues that that tripartism cannot
fully disclose the reality of Chinese labor, and that labor representation derives from
both unions and self-organization of workers, such as NGOs, which opens more room
for the entrenchment of the grassroots labor movement to sustain the balance of
power among the state, firms, international market forces and individual workers in
the long term.
Summary and Research Gap
The study of the literature published by different authors on the subject of
Industrial Relations across the globe has given a deep understanding about the subject
of Industrial Relations. IR is the most primitive form of personnel management which
dates back to the eighteenth century. Its relevance is right from the 1769, when James
Watt had fought for the patent of the steam engine. IR borrows its basic principles
from the various disciplines e.g economics (wages bonus, monitory benefits), law
9Labor Laws), psychology (Trade unions and their social frame work), Literature
review done during this chapter has given an overall understanding of the various
theories and vies of the experts and authors in the area of Industrial relations. To
summarize here that the extensive literature search has been conducted encompassing
publications of the Government of India, International Labor Organization, and from
other relevant publication’s. This chapter has provided deeper insights on the
30
published literature in relation to industrial relations in the and especially focuses on
the changes and dynamics impacting the industrial relations in the post liberalization
in changing business environment.
However, the published literature does not give much of evidence about the
indicators of good or bad industrial relations. Many authors have described
experimentations conducted in the way to manage the industrial relations and many of
them have been successful. But, such 67 practices could not be generalized to evolve
as a theory to contribute to the body of knowledge.
Industrial Relations paradigm in India had dramatically changed following the
adaptation of free market policy in the early nineties. With the dawn of liberalization,
privatization and globalization (LPG), the country is, by and large, able to preserve a
sound and positive industrial relations climate. This is apparent from the statistical
figures of Union Government’s Labor Bureau, which exhibits drastic decline of
industrial disputes from 3049 in 1979 to 391 (P) in 2009.
Declining trend in the number of disputes and ‘Liberalization’ introduced
change of business environment and increased competition among industries for
survival in the global market economy. Globalization, potential market capacity and
availability of workforce led many MNC’s, representing the best brands of the world,
to set up their manufacturing bases in India, giving a tough competition to their Indian
counterparts. These MNCs prefer managing labor relations through ‘work
committees’, which have representatives from various departments in the company,
eventually reducing trade union activism. The rise of IT industry and the emergence
of knowledge workers contributed further to decline of workers union. Part of the
reason was that workers’ issues and concerns had changed and change of functional
31
models of industry reduced the area of confrontations, which is evident from the
happenings around, published and unpublished.
Existing literature does not highlight the factors contributing to the quality of
industrial relations, though it points towards several enterprise related factors like
person related, organization related and external environment related factors.
The literature review has not noticed any comparison of industrial relations
related work in India done by different companies. Further, there exists a research gap
related to study of strategies adopted by different companies.
This research gap necessitates a study, which would bridge the gaps and
would lead to evolving a scientific framework for managing industrial relations,
which is more productive and enriching for the Indian firms.
32
INTRODUCTION
SHIV SHAKTHI Textiles is one of the leading and popular spinning mills in
HYDERABAD incorporated in 1993. It is creating waves in the textiles sector and a
close competitor for Vardhaman and Coats. It is having as larger investor base all
over India and listed in BSE and NSE.
The Company, SHIV SHAKTHI Textiles, engaged in the Manufacture of
cotton yarn, mainly of finer counts was incorporated in, 1996, in HYDERABAD, and
at present belongs to the JEEDIMETLA, SHIV SHAKTHI Group. It has constantly
modernized its production facilities. It has vertically integrated manufacturing set-up
to product fine and superfine cotton yarns, grey knitted fabrics, gassed fabrics,
mercerized fabrics and life style garments in Double Mercerized cotton.
It has the two subsidiary companies viz. SHIV SHAKTHI Exports Ltd. and Pack
worth Udyog Ltd. SHIV SHAKTHI at present exports 99% of its turnover. It is a
major exporter to Hong Kong, Japan, South Korea, Singapore, US and Canada and is
also quite dominant in Italy, Germany, and the Netherlands. An American firm that
sells them under the famous Cutter & Buck brand- brand that Clinton the golfer wears
acquires T-shirts made by it.
Patspin India Ltd., a 100% Export Oriented Unit, has been promoted by the
company along with M/s Itochu Corporation, Japan & M/s Kerala State Industrial
Development. It has also strong marketing network in various countries to create a
brand name. SHIV SHAKTHI has entered the domestic market as well with its golf
and lifestyle.
SHIV SHAKTHI Textiles Ltd has recorded a six per cent growth in its sales at
Rs 243.61 core realized for the year ended March 31, 2007 compared to Rs 230.01
corer in the previous fiscal.
33
RECENT DEVELOPMENTS
The company's net profit for the year has almost doubled to Rs 7.08 corer as
against Rs 3.63 corer. The board of directors of the company has declared 20 per cent
dividend for the year 2006-07. As per the audited financial results of the company,
SHIV SHAKTHI could bring down its interest charge during the year to Rs 14.58
corer from the previous year's Rs 16.43 corer.
The company which has undertaken modernization of its unit at an outlay of
Rs 39.78 corer has spent Rs 26.31 corer as on March-end and the modernization is
scheduled to be completed by December 2007. Patspin India Ltd net up Patspin India
Ltd, the 100 per cent export oriented unit from the SHIV SHAKTHI staple, has
recorded Rs 8.60 corer net profit for the year ended March 31, 2007 as against Rs
5.98 corer in the previous year. Its sale income from operation for the year stood at
Rs 100.57 corer compared to previous year's sale of Rs 108.28 corer. The board of
directors has declared a 9 per cent dividend for shareholders for the year.
SHIV SHAKTHI Textiles Ltd has reported 13 per cent drop in its operative
income for the quarter ended April 30, 2007 compared to its net sales realized for the
corresponding period in the previous year. Its net income fell to Rs 45.45 corer
against Rs 52.47 corer.
The company's net profit for the quarter went down by 58 per cent at Rs 67
lakhs against Rs 1.58 corer. The profit margin as a percentage to net sale income
during the period too was sliced almost by half at 1.47 per cent against three per cent
in the previous year.
SHIV SHAKTHI's stock-in-trade during the quarter went up to Rs 12.54 corer
from previous year's Rs 5.99 corer. Its raw material cost too was higher this time,
from Rs 27.32 corer last year to Rs 29.14 corer. Patspin India Ltd: Despite showing a
34
12 per cent increase in its net sale income for the quarter ended April 30, 2007,
Patspin India's net profit fell to Rs 1.47 corer for the quarter compared to Rs 1.92
corer for the corresponding period in the previous fiscal. Its total sale was higher at
Rs 26.32 corer (Rs 23.34 corer). As against this, total expenditure incurred during the
period was higher at Rs 21.41 corer (Rs 17.73 corer).
TWO promoters of SHIV SHAKTHI Textiles Ltd (SSTL), a Hyderabad-based
Rs 231-corer yarn manufacturer, have been gifted over one lakh equity shares each by
another promoter of the company.
The SSTL Chairman and Managing Director, Mr. Vinod Kumar Patodia, was
gifted 1, 07,440 equity shares and the SSTL Manager, Mr. Mahcndra Kumar
Patodia another 1, 07,440 equity shares by their mother, Ms Devi Patodia.
The shares gifted by Ms Patodia arc currently categorized under the promoter's
holding. Hence, according to the company officials, the total promoter's shareholding
in the company would remain unchanged in the post-gift scenario. As on December
31, 2006, Mr. Vinod Patodia holds on his individual capacity of 3, 45,630 shares,
which rose to 4, 53,070 by January 31, 2007. Under the HUF category, he held 5,
79,440 shares as on December 31, 2006, which remained unchanged.
In the case of Mr. Mahcndra Patodia, lie held in his individual capacity
6,34,842 shares as on December 31, 2006, which rose to 7,42,282 shares by January
31, 2007.
35
Awards of the Company
Mill Exporter Yarn Gold Trophy Tcxprocil 1998-99 SHIV SHAKTHI Textiles
Ltd
TEXPROCIL award winner 2001-02
SHIV SHAKTHI Textiles – Manufacturer - Exporter - Yarn, Gold Award
TEXPROCIL award winner 2002-03
SHIV SHAKTHI Textiles – Manufacturer - Exporter - Yarn, Gold Award
Future Plans
It also plans to step into compact spun yarn and enhance its marketing
infrastructure as Compact spinning which is the latest spinning technology in the
world, produces yams of high quality, which will further diversify the product mix of
the Company. Expecting tough competition in the near future due to the opening up
of world markets, the company has decided to lay more emphasis on product/market
development, value-added yarns, customer services and technology up gradation.
Company is of the view that, with focused efforts on technological advancements,
product diversification, strategic marketing, cost control measures across the units
and debt revamping will help in maintaining the bottom line and along with this , the
new markets will help the company to maintain its leadership in medium, fine and
super fine segments.
36
GROUP PROFILE
“THE MARKET PLACE IS THE DRIVING FORCE BEHIND
EVERYTHING SSTL DOES"
SHIV SHAKTHI group, an organization with over five decades of ceaseless
efforts to select the best natural cotton fiber from the world markets and convert it
into value added products such as high end fine count gray yarns, gassed yarns,
mercerized and dyed yarns, knitted and woven fabrics and double mercerized
garments at the consumer end of the markets.
Vertically integrated manufacturing set-up to produce fine and superfine
cotton yarns, grey knitted fabrics, mercerized fabrics, gassed fabrics and life style
garments in double mercerized cotton offers a unique one stop shop to those looking
for an operationally strong and reliable source.
EXPORT PERFORMANCE
From the multi-location facilities in India, with an aggregate of 1, 63,000
spindles, SHIV SHAKTHI have achieved performances which have been widely
recognized in the market place:
Leading exporters of fine and superfine cotton yarns.
Winner of the “best exporter award from government of India continuously 8 years.”
Group annual exports exceeds 3 billion Indian rupees (us $ 66 million)
PRODUCT RANGE
Cotton yarns - count group NE20s to NE140s.
Two for one twisted - knitting and weaving yarns.
Gassed mercerized, mercerized dyed, Moulin, gray knitted and gassed fabrics
Double mercerized garments.
37
PORTFOLIO MIGRATION AND CORE COMPETENCE
From fibers to fashion the range of competencies in SSTL group is simply
long, linear and vast, be it spinning or mercerizing, knitting or weaving, designing or
confection. Portfolio migration determined by core competence makes SSTL an
extraordinarily focused company and a reliable business partner to those, when time
is of essence, quality is a passion, class and comfort a way of life.
QUALITY ASSURANCE
The focus of the quality policy of SSTL group has been to provide products at
a price and service advantage through direct response mechanism .in order to sustain
the investments in the key technology areas concerning our business, at SSTL we
have made significant investments in the testing and quality assurance equipment
from the best in the world in each of our production bases and also ensured a
company-wide standardization discipline through implementation of IS09002 norms.
This arc reinforced periodically through personal interactions between our field
representatives and consumers of our products.
QUALITY POLICY
Highest level of customer satisfaction by meeting stated and perceived
requirement maintaining consistency and timely delivery.
Continual up gradation of product quality and technology supported by R&D
efforts in cost-effective manner.
To meet changing global demand for specialized yarns.
Motivating personnel for ensuring quality awareness at all levels.
Ensuring better quality life by its commitment to social and environmental
needs.
38
QUALITY OBJECTIVES
ENSURE highest level of customer satisfaction through
Understanding the customer related requirements fully, measured by the no. of
amendments to work-order.
Complying with these consistently
Ensuring timely delivery. Presently this is near 100%
ENSURE continual up gradation of product quality, both to meet the
customer’s requirements and excel in business, as an ongoing process, through
adoption of latest techniques / developments relevant to the industry consistent
with the cost. This process pervades through the entire spectrum of
organization activity.
AFFIRM persons who arc aware, competent and trained to do the job
undertake all activities pertaining to quality of product/services.
AFFIRM the activities / services
Industrial relations and Trade union movements SHIV SHAKTHI Textiles
(Medak unit).
The spinning mill was established in the year 1993 with a work force of 400
of these 300 were working in worker category and the remaining were staff. Textile
industry was very new to this area and the skilled workers were not available. The
management brought some experienced workers from some parts of Tamilnadu and
Kerala. Since all this out source workers had already exposed to the trade unionism
and did not take much time to get unionized. A full- fledged trade union emerged
consequently in the year 1999. Initially two groups were formed and had affiliation to
Indian national trade union Congress and Bharath sung. Management had a joint
understanding with both the groups, with regard to work load norms, wages and other
39
service conditions. This agreement was also registered as tripartite settlement with the
government under Sub section 12 (3) of the section of industrial disputes out 1947.
Things were fairly peaceful for 3ycars some of the workmen started showing
allegiance towards communist groups. The atmosphere among the workmen began to
pollute with 3 different Ideologies of 3 distinguished groups. Each group tried to
dominate the others to show its Supremacy. In the process however, there was no
much disturbance to the work in the establishment but there had been lot of fighting
among the workmen. The communist group succeeded to establish their majority and
could gain the ground as the recognized and majority union. This was affiliated to
IFTU, a service organization of the extremists.
The leader’s arc from local area and the supporting workers were mostly from
outside the state. Leaders slowly tried to inculcate militants in the trade unions as it
was their primary objective .It was in the month of October 1988 and it was the time
for the demand for bonus for the year 1987-1988.Thc union though, are not entitled
for bonus as per the payment of bonus Act 1965, that to at 20%. The management
expressed the inability, in the litc of the company not registering any profit during the
set accounting year.
The union existing for the same, and began to none co-operate with the
management in production in shop floor. The management however considers the
payment of some amount as egression in place of bonus, not satisfied by the offer.
The union stood on their demand for 20% of bonus. The leaders instigated the
workmen to intensify their non co-operation by giving false information about the
company’s profits and quoting another companies profits.
The workmen entertain very high hopes about their owners and blindly
followed the instructions of the leaders. The situation began to worsen day by day,
40
and the management has to face various problem in production and the quality of the
product, in this situation arc kept for 5 months and the union send a strike notice in
the month of march 2002.Thc strike was band, though the strike was prohibited by the
government in the textile industry, being a public utility concern with all the jubilance
and high spirits, ignited by the union leader. The workmen suddenly resorted to strike
on 10 April 2002. Slogans, derogatory remarks on the executive threatening, abusing
have ruled the day every day. The management efforts to make the workmen
understand the actual situation, their notices, their counseling and various other
methods did not change the attitude of the workmen. They use to come into the
establishment and mark attendance, sit in the shop floor and indulging in singing,
dancing, gambling and playing dice, all through in the shop floor. The matter were
refer to labor department, a series of conciliation meeting were held for four months
April, May, June, July and yet there was no positive result, and the strike was
continuing unabated enough damage was done and it was also doubted by the
management that the company could no longer with stand such heavy losses.
However the management kept alive the dialogue with the union leader for the
labor department.
The management having exhausted with all the alternatives self justified in
declaring lock out of the establishment. Since all the workmen were sitting idle inside
all seven days a week, it was not possible to forcibly evaluate them to declare the lock
out. The management had to wait till the public holiday and accordingly declared the
lock out on 15 August 2002.
This action by the management created confusion among the workmen. The
workmen began to realize the gravity of the situation and discussed among
themselves to rectify the situation for their own survival. As a result their came a
41
vertical split among the voters the locals within the state tried to unite and leave the
communists and show their allegiance to the local 1NTUC leaders. The workmen
belonging to other states continued to repose their confidence in communists. The
differences between these two separated them from each other, this lead to physical
attachment between these two and in the process some of the INTUC workers were
seriously injured. The senior leadership of INTUC from the state interfered and tried
to solve the problem.
The management invited this Faction of the union and came to an
understanding to lift the lock out. Lock out was lifted on 22 October 2002. The
communist group agreed by this, tried to indulge in physical assaults on the loyal
workmen of INTUC in the establishment. Many of the IFTU workmen were absent
fearing in the revenge by the INTUC group. The establishment was slowly coming
back to normal position. The IFTU leaders and the workmen, who have been
continuously absenting for duties, hatched a plan to attack the INTUC workers to
create a panic among them and to create terror among the workers. As per their
master plan, attacked the INTUC worker in the establishment while they were on
duty on 28 February 2003 in the midnight. They carried with them sticks, daggers,
iron rods etc., the worker were suddenly attacked inside the factory and killed 5 of
them and seriously injured 50 other workmen. The management and the worker both
under stunned and though for a while that was the end of it. The management took
care of all injured admitting them in hospitals and pay due compensation to the
braved families of 5 deceased workmen. Many of their workers ran off from the
company out of fear. The work came to stand still but only 40 workers were present
out of 350. The workers who live of the adjacent village only remained, the
management did not lose faith on the Loyal workmen and tried to re-establish its part.
42
The company came under protection of 50 odd policemen. The district SP
personally gave the assurance of safety under police custody to all workmen.
The workmen responded positively and co-operated with the management.
The management started recruiting fresh workmen and the company re-opened on 12
March 1990. The establishment gained strength day by day, and in the month of
September started working at full capacity. They could able to export 100% of its
goods to the developed countries. The rebuilding of confidence, spirit and faith,
though took 6 months was amazing.
The company during these 6 months grown from 0-100. The media all over
the country covered the whole episode created history in the surroundings and that
ghastly incident of February 29 2003. Everything ended with a good, not to be in
fairy talc
“They lived happily ever after".
Disciplinary procedure
Disciplinary procedure in SHIV SHAKTHI Textiles ltd is followed as per, a
set of norms within the preview of labor laws. We have to first compliment the
management of SHIV SHAKTHI Textiles ltd for maintaining absolute among its
employees by sparingly using punitive methods. The discipline here is very strongly
guarded both by the management and workmen during last 15 years. This is also
evident by the survey we conducted at random among the employees.
Now we briefly discuss about the disciplinary procedure being followed in
SSTL.
43
MANAGEMANT ACTION
Minor misconduct:
Minor misconduct will be given a show cause notice to the employee asking
for explanation written in 48 hours.
If his explanation is satisfied he will be given a warning or suspended for
three days. In some cases his increments will be withheld for three years, demote to
the next lower.
Major misconduct:
On the issuing an employee a charge sheet he would be suspended to the other
proceedings. An outside professional will be appointed as the enquiry officers and the
enquiry will conducted in to the changes delinquent employees and if the misconduct
is established appropriate disciplinary actions will be taken against him. As the
management deems fit as the proper circumstances, proper in particular care,
punishment may range from service under normal circumstances. The dismissed
employee will not re-consider as the employee, if at all management consider
reinitiating back of humanitarian or sympathetic grounds. They may do so offering
him a fresh temporary employment, keeping in an observation for six months and
without continuity of his fast service. All the above actions by the management
punishment with regards to punish for their misconduct subject to relevant provision
laid under labor acts.
44
GRIEVANCE PROCEDURE:
Grievances for the employees in SHIV SHAKTHI Textiles arc considerably
low therefore the grievance re-dressily system does not follow any specific set of
terms and conditions the management believes in preventions than cure, for example
there is not even one grievance from any the employee. With regard to the payment,
fulfillment of statutory benefits on behalf of employees. Payments of loans and the
advances at least during last 15 years. The employees have easy access to top
management and since the management and workmen has good relation. Grievances
if any arc being sorted out without any elaborate rc-dressal systems.
Three Actors of Industrial Relations
According to Dunlop three major participants or actors of industrial relations
viz., workers and their organizations, management and Government arc identified.
Workers and their organizations
The total worker plays an important role in industrial relations. The total
worker includes working age, educational background, family background,
psychological factors, culture, skills etc., Worker’s organizations prominently known
as trade unions play their role more to protect the workers’ economic interest through
collective bargaining and by bringing pressure on management through economic and
political tactics.
Employers and their organizations
Employer is a crucial factor in industrial relations. He employs the worker,
pays the wages and various allowances, and regulates the working relations through
various rules, regulations and by enforcing labor laws. Employers form their
organizations to equate or excel their bargaining power with that of trade unions.
45
Government
Government plays a balancing role as custodian of the nation. Government
exerts its influence on industrial relations through its labor policy, industrial relations
policy, implementing labor laws, the process of conciliation an adjudication by
playing the role of a mediator etc.,
Principles of Sound Industrial Relations
Maintenance of sound industrial relations is as crucial and difficult as that of
human relations. Hence, the following principles should be followed to maintain
sound industrial relations:
1. Recognition of the dignity of the individual and of his right to personal
freedom and equality of opportunity.
2. Mutual respect, confidence, understanding, goodwill, and acceptance of
responsibility on the part of the both employer, management and workers and
their representatives in the exercises of the rights and duties in the operation of
the industry.
3. Similarly, there has to be an understanding between the various organizations
of employers and employees who represent the management and workers.
Functional requirements for Sound Industrial Relations
Top management support: Since industrial relations is a functional staff
service, it must derive authority from the line organization. This is
accomplished by having the industrial relations director report to the top line
authority- the president, chairman or vice-president. Besides, top management
must also set an example for others.
Sound Personnel Policies: They constitute a business philosophy for the
guidance of the human relations’ decisions of the enterprise. The purpose of
46
such policies is to decide ahead of emergency and what shall be done with a
large number of problems that may arise daily. Policy can be successful only
when it is followed at all levels from top to bottom.
Adequate practices: Adequate practices should have been developed by
professional in the field to assist the policies of the units. A system of
procedures is necessary to translate intention into action. The procedure and
practices of industrial relations arc the “tools of management” which keep the
supervisor ahead of his job; the work of time-keeping, rate adjustments,
grievance reporting a merit rating.
Detailed supervisory training: To carry out the policies and practices by the
industrial relations staff the job supervisors must be trained in detail, and the
significance of the policies must be communicated to the employees. They
must be trained in leadership and communication.
Follow-up of results:
Constant review of the industrial relations programme is necessary not only to
evaluate existing practices but also as a check on certain undesirable tendencies.
Follow-up of turnover, absenteeism departmental morale, grievances,
employee suggestions, wage administration, etc., must be supplemented with
continuous research to make certain that the policies pursued arc those best fitted to
company needs and employee wishes.
It has been realized in Vedas that one of the important factors necessary for
happiness in a group or community is good mutual relations. The industrial relations
machinery during the Vedic times consisted of madhyamasi (mediator), a man of
position and influence in the society. People in the rural community were able to
solve and settle disputes by themselves. The village officials attended to and solved
47
the local problems. They were invested with judicial as well as executive authority.
This system prevailed under the Hindu government. The unions were not only
the assemblies of the employees but they were also the institutions for maintaining
cordial relations between employers and employees.
Every effort was made to improve the mutual relations between capital and
labor. The Law givers (like Sukra) have warned the employers that employees
become their enemies, in ease they use harsh words, inflict heavy punishment, cut
their wages, and treat them dishonorably. The employees who were treated with
respect or kept content with their wages, and addressed with sweet words never leave
the employer. In the Epics also, the employees were treated with respect, given some
gifts and sweetly addressed.
To maintain good relations between employees and employers emphasis has
been laid on good treatment of employees and to condone their minor faults. The
lawgiver’s arc unanimous in holding that disputes cannot end by continuing them; but
they should be settled by peaceful means. They have advised that no employee should
remain discontented because a disgruntled employee encourages other employees to
create industrial unrest. Therefore, in their opinion, no such work or action should be
undertaken if the employees show opposition.
Not only during the Vedic times but also even today in the modern industrial system
cordial relations between the employees and employers play a crucial role to build a
strong industrial work setting.
Hence, maintenance of good human relationship is the main theme of
industrial relations, because in its absence the whole edifice of organizational
structure may crumble down.
48
Definition and concept of Industrial Relations
The term ‘Industrial Relations’ comprises ‘Industry’ and ‘relations’. Industry
means “any productive activity in which an individual is engaged”, and relations
means “ the relations that exist in the industry between the employer and his
workmen.” Observers like Dr. Kapoor say, “ Industrial Relations is a developing and
dynamic concept and as such no more limits itself merely to the complex of relations
between the unions and management but also refers to the general web of
relationships normally obtaining between employees- a web much more complex than
the simple concept of labor capital conflict.”
Different authors have defined industrial relations in somewhat different way.
Below are given some oft-quoted definitions:
FUNCTIONS OF INDUSTRIAL RELATIONS
1. Communication is to be established between workers and the management in
order to bridge the traditional gulf between the two.
2. To establish a rapport between managers and the managed.
3. To ensure creative contribution of trade unions to avoid industrial conflicts, to
safeguard the interests of workers on the one hand and the management on the
other hand, to avoid unhealthy, unethical atmosphere in an industry.
4. To lay down such considerations which may promote understanding,
creativity and cooperativeness to raise industrial productivity, to ensure better
workers’ participation
49
Characteristics of Industrial Relations
1. Industrial Relations arc outcome of employment relationship in an industrial
enterprise.
2. Industrial Relations develop the skills and methods of adjusting to a
cooperating with each other.
3. Industrial relations system creates complex rules and regulations to maintain
harmonious relations
4. The government - involves to shape the industrial relations through laws,
rules, agreements, awards etc.,
5. The important factors of industrial relations arc: employees and their
organizations, employer and their associations and government.
Importance of Industrial Relations:
‘Industrial Relations’ constitute one of the most delicate and complex
problems of modern industrial society. Industrial relations has become one of the vital
aspects in today’s industrial system as the times have always been changing bringing
a lot of change in working and living conditions of people. Keeping pace with
changing trends and tough competition with the world outside has become the key
factor. Many changes have occurred in just a few decades with the advent of
Industrial Revolution. The need for a more sophisticated industrial system should be
devised keeping employee and his needs in mind. The importance of employee
relations can be appreciated by observing the following aspects/changes:
With growing prosperity and rising wages, workers have gained better living
conditions, polished education, sophistication and generally greater mobility.
50
Career patterns have changed as growing proportions have been compelled to
leave the farms and become wage and salary earners under trying factory
conditions.
Large number of men, women and children dwelling in urban areas under
mass ignorance arc drenched in poverty possessing diverse conflicting
ideologies. The working organizations in which they arc employed have
become larger and shifted from individual to corporate ownership.
There also exist status-dominated, secondary group-oriented, universalistic
and aspirant-sophisticated classes in the urban areas.
Employees have their unions and employers their bargaining associations to
give a tough fight to each other and establish their powers.
The government has played a growing role in industrial relations, in part by
becoming the employer for millions of workers and in part by regulating
working conditions in private employment.
Rapid changes have taken place in the techniques and methods of production.
Technological advances have eliminated long established jobs and have
created opportunities that require different patterns of experience and
education.
Non-fulfillment of many demands of the workers has brought industrial
unrest. They arc the points of flexion and the base of industrial edifice.
All these changes have made employment relationship more complex. Hence, a clear
understanding about these is as interesting as it is a revealing experience. The creation
and maintenance of good relations between the workers and the management is the
very basis on which the development of an Industrial Democracy depends.
51
The healthy and orderly industrial relations in an enterprise generate attitudes
that procreate progress and stabilize democratic institutions. ‘Stable industrial
relations’ means a situation when requirements of management and the work force
arc discussed between them in a spirit of mutual trust and confidence and without
causing friction. For example, the management would like to develop stable relation
with a view to getting a disciplined and conscientious workforce for more work. This
would reduce supervisory and administrative work as also enable better planning for
future production and expansion. The workforce, on the other hand, expects liberal
thinking by management and a more human approach to its need by giving stable
relations. Stable relationship is, therefore, means to an end and not an end in itself.
The union’s arc also involved in industrial relations. Through stability they obtain for
the work force more benefits. The Government would like stable relations to prevail
both for better production and for easier law and order.
52
1. Employees’ opinion on the overall industrial relations:
TABULAR FORM:
PARAMETERS WORKERS OPINION STAFF OPINION
GOOD 47% 95%
FAIR 43% 5%
TO BE 10% 0%
GRAPHICAL REPRESENTATION:
Good Fair To Be0
10
20
30
40
50
60
70
80
90
100
Wokers OpinionStaff Opinion
INTERPRETATION:
From the above figure we found that the workers opinion percentage on good is
47%,and for fair is 43%,and for to be is 10%.And for staff opinion on good is
95%,and on fair is 5%.
ANALYSIS:
From the above analysis we found that the majority of employees on over all
industrial relations in workers opinion is 47%.And on the staff opinion is 95%
53
2. Employees have free access to the top management:
TABULAR FORM:
PERIMETERS WORKERS OPINION STAFF OPINION
AGREE 77% 90%
DIS AGREE 23% 10%
GRAPHICAL REPRESENTATION:
WORKERS OPINION STAFF OPINION0
10
20
30
40
50
60
70
80
90
100
AGREEDIS AGREE
INTERPRETATION:
From the above figure we found that the workers opinion percentage on agree is 77%
and for disagree is 23%and on staff opinion percentage on agree is 90%and for
disagree is 10%
ANALYSIS:
From the above figure it is found that the majority of the employees have free access
to the top management in workers opinion is 77% and for staff opinion is 90%
54
3. The top management listens to the employees patiently:
TABULAR FORM:
PARAMETERS WORKERS OPINION STAFF OPINION
AGREE 97% 100%
DIS AGREE 3% 0%
GRAPHICAL REPRESENTATION:
WORKERS OPINION STAFF OPINION0
20
40
60
80
100
120
AGREEDIS AGREE
INTERPRETATION:
From the above figure we found that the workers opinion percentage on agree is 97%
and for disagree is 3% and on staff opinion percentage on agree is 100%
ANALYSIS:
From the above analysis it is found that the majority of employees have good opinion
on top management listens to employees patiently in workers opinion is 97% and for
staff is 100%
55
4. The management has faith in the employees as one of the main resources
PARAMETERS WORKERS OPINION STAFF OPINION
AGREE 100% 95%
DIS AGREE 0% 5%
GRAPHICAL REPRESENTATION:
WOKERS OPINION STAFF OPINION0
20
40
60
80
100
120
AGREEDIS AGREE
INTERPRETATION:
From the above figure we found that the workers opinion percentage on agree is
100% and on staff opinion percentage on the agree is 95% and for disagree is 5%
ANALYSIS:
From the above analysis it is found that the majority of the employees have good faith
in management as they are they are the main resources to management in workers
opinion is 100% and for staff is 95%
56
5. Whether the employees have confidence in the top management to run the
industry efficiently:
TABULAR FORM:
PARAMETER WORKERS OPINION STAFF OPINION
AGREE 90% 100%
DISAGREE 0% 0%
CANT SAY 10% 0%
GRAPHICAL REPRESENTATION:
WORKERS OPINION STAFF OPINION0
20
40
60
80
100
120
AGREEDISAGREECANT SAY
INTERPRETATION
From the above figure we found that the workers opinion percentage on agree is 90%
and for cant say is 10% and on staff opinion percentage on agree is 100%
ANALYSIS:
From the above analysis it is found that the majority of the employees have
confidence in the top management to run the industry efficiently workers opinion is
90% and for staff opinion 100%.
57
6. Management always expects more from the employees:
TABULAR FORM:
PARAMETERS WORKERS OPINION STAFF OPINION
AGREE 70% 81%
DISAGREE 30% 19%
GRAPHICAL REPRESENTATION:
WORKERS OPINION STAFF OPINION0
10
20
30
40
50
60
70
80
90
AGREEDISAGREE
INTERPRETATION:
From the above figure we found that the workers openion percentage on agree is
70% and for disagree is 30% and on staff opinion percentage on agree is 81% and
disagree is 19%.
ANALYSIS:
From the above analysis it is found that the majority of the employees agree on
Management always expects more from the employees workers opinion is 70% and
for staff opinion 81%
58
7. The employees always expect more benefits from the management:
TABULAR FORM:
PARAMETER WORKERS OPINION STAFF OPINION
AGREE 90% 81%
DIS AGREE 10% 19%
GRAPHICALREPRESENTATION:
WORKERS OPINION STAFF OPINION0
10
20
30
40
50
60
70
80
90
100
AGREEDISAGREE
INTERPRETATION:
From the above figure we found that the workers opinion percentage on agree
is 90% and for disagree is 10% and on staff opinion percentage on agree is
81% and disagree is 19%
ANALYSIS:
From the above analysis it is found that the majority of the employees always
expect more benefits from the management workers opinion is 90% and for staff
opinion 81%.
59
8. The management is satisfied with the employees' performance:
TABULAR FORM:
PARAMETER
SWORKERS OPINION STAFF OPINION
AGREE 97% 100%
DISAGREE 3% 0%
GRAPHICAL REPRESENTATION:
WORKERS OPINION STAFF OPINION0
20
40
60
80
100
120
AGREEDISAGREE
INTERPRETATION:
From the above figure we found that the workers opinion percentage on agree is 97%
and for disagree is 3% and on staff opinion percentage on agree is 100%
ANALYSIS:
From the above analysis it is found that the management is satisfied with the
employees' performance workers opinion is 97% and for staff opinion 100%.
60
9. Employees' are satisfied with managements' offers:
TABULAR FORM
PARAMETER WORKERS OPINION STAFF OPINION
AGREE 60% 77%
DISAGREE 40% 23%
GRAPHICAL REPRESENTATION :
WORKERS OPINIO STAFF OPINION0
10
20
30
40
50
60
70
80
90
AGREEDISAGREE
INTERPRETATION:
From the above figure we found that the workers opinion percentage on agree is 60%
and for disagree is 40% and on staff opinion percentage on agree is 77% and on
disagree is 23%
ANALYSIS:
From the above analysis it is found that the Employees' are satisfied with
managements' offers and on workers opinion is 60% and for staff opinion 77%.
61
10. There is serious conflict between management and employees w.r.t.
wages/salaries:
TABULAR FORM:
PARAMETERS WORKERS OPINION STAFF OPINION
AGREE 33% 23%
DISAGREE 67% 77%
GRAPHICAL REPRESENTATION:
WORKERS OPINION STAFF OPINION0
10
20
30
40
50
60
70
80
90
AGREEDISAGREE
INTERPRETATION:
From the above figure we found that the workers opinion percentage on agree is 33%
and for disagree is 67% and on staff opinion percentage on agree is 23% and on
disagree is 77%
ANALYSIS:
From the above analysis it is found that there is serious conflict between management
and employees regarding wages/salaries on workers opinion is 33% and for staff
opinion 23% and they disagree with management.
62
11. Canteen, recreation, transport, accommodation are:
TABULAR FORM:
PARAMETERS WORKERS OPINION STAFF OPINION
AGREE 10% 62%
DISAGREE 80% 19%
CANT SAY 10% 9%
GRAPHICAL REPRESENTATION:
WORKERS OPINION STAFF OPINION0
10
20
30
40
50
60
70
80
90
AGREEDISAGREECANT SAY
INTERPRETATION:
From the above figure we found that the workers opinion percentage on agree is 10%
and for disagree is 80% and for cant say is 10% and on staff opinion percentage on
agree is 62% and on disagree is 19% and can’t say is 9%
ANALYSIS:
From the above analysis it is found that the majority of employees disagree with
management regarding Canteen, recreation, transport, accommodation are on workers
opinion is 10% and for staff opinion 62% and they disagree with management.
63
12. Indiscipline among the employees:
TABULAR FORM
WORKERS OPINION STAFF OPINION
MORE 0% 0%
TO A LITTLE
EXTENT14% 19%
NORMAL 50% 48%
ABSENT 36% 33%
GRAPHICAL REPRESENTATION:
WORKERS STAFF0
10
20
30
40
50
60
MORETO A LITTLE EXTENTNORMALABSENT
INTERPRETATION:
From the above figure we found that the workers opinion percentage on normal is
50% and for absent is 36% and for little extent is 14% and on staff opinion percentage
on normal is 48% and on absent is 33% and for little extent is 19%
ANALYSIS:
From the above analysis it is found that the opinion on management regarding
Indiscipline among the employees on normal is 50% and absent 36% and little extent
64
14% and for staff normal 48% and for absent 33% and on little extent 19%.
13. Punishments for indiscipline are:
TABULAR FORM:
PARAMETERS WORKERS STAFF
HARSH 3% 0%
INPROPORTION 44% 14%
FAIR 30% 52%
MEDIUM 3% 34%
GRAPHICAL REPRESENTATION:
WORKERS STAFF0
10
20
30
40
50
60
HARSHINPRORTIONFAIRMEDIUM
INTERPRETATION:
From the above figure we found that the workers opinion percentage on Harsh is 3%
and for in proportion is 44% and for fair is 30% and on medium is 3% on staff
opinion percentage on harsh is 0% and in proportion is 14% and for fair is 52% and
on medium is 34%
ANALYSIS:
From the above analysis it is found that the Punishments for indiscipline on employees
65
for management reaction on employees are disagree
66
14. Do you like your children working in this industry if they are employed:
TABULAR FORM:
PARAMETER WORKERS STAFF
YES 10% 48%
NO 90% 52%
CANT SAY 0% 0%
GRAPHICAL REPRESENTATION:
WORKERS STAFF0
10
20
30
40
50
60
70
80
90
100
YESNOCANT SAY
INTERPRETATION:
From the above figure it is found that the workers opinion on yes is 10% and for no is
90% and on cant say is 0% and for staff opinion on yes is 48%and for no is 52% and
on cant say is 0%
ANALYSIS:
From the above analysis it is found that majority of the employees are not willing to
work their children in the same industry and on workers opinion on agree is 10% and
for staff is 48%
67
15. Industrial peace, more than the existing one can be achieved through:
PARAMETERS WORKERS OPINION STAFF OPINION
INCRESING FACILITIES 26% 33%
INCREASING WAGES AND M B 64% 33%
THROUGH CONSELLING
INDIVIDUAL WORKMEN10% 29%
CANT SAY 0% 4%
GRAPHICAL REPRESENTATION:
WORKERS OPINION STAFF OPINION0
10
20
30
40
50
60
70
INCREASING FACILITIESINCEASING WAGES AND MONETARY BENEFITS THOUGH COUNSELLING IN-DIVIDUAL WORKMENCANT SAY
INTERPRETATION:
From the above figure we found that workers opinion on facilities is 26% and for
wages and benefits 64% and through counseling individual workmen is 10% and for
staff opinion on facilities is 33% and for wages and benefits 33% and through
counseling individual workmen is 29% and for cant say is 4%
ANALYSIS:
From the above analysis Industrial peace, more than the existing one can be achieved
they agree with management
68
16. Dissatisfaction in various aspects among the employees is more in this
establishment
TABLER FORM :
PARAMETER WORKERS STAFF
YES 20% 50%
NO 80% 50%
NORMAL 0% 0%
GRAPHICAL REPRESENTATION:
WORKERS STAFF0
10
20
30
40
50
60
70
80
90
YESNONORMAL
INTERPRETATION:
From the above figure we found that workers opinion on yes is 20% and for no is
80% and on normal is 0% and for staff opinion on yes is 50% and for no is 50% and
normal is 0%
ANALYSIS:
From the above analysis it is found that Dissatisfaction in various aspects among the
employees is more in this establishment for workers is 20% and for staff 50%
majority of employees not agreed with management.
69
17. Your position in this company when compared to other industries in this
area is
TABLER FORM :
PARAMETER WORKERS STAFF
BETTER 60% 70%
ON PAR WITH 30% 20%
LOWER THAN OTHERS 10% 10%
GRAPHICAL REPRESENTATION:
WORKERS STAFF0
10
20
30
40
50
60
70
80
BETTERON PAR WITHLOWER THAN OTHERS
INTERPRETATION:
From the above figure we found that workers opinion on better is 60% and on par
with 30% and lower than is 10% and for staff opinion on better is 70% and on par
with 20% and lower than is 10%
ANALYSIS:
From the above analysis it is found that Your position in this company when
compared to other industries in this area for workers is 60% and for staff 70%
majority of employees agree
70
18. How are the opportunities outside w.r.t salary/comfort/facilities etc.,
outside if you leave this job at present?
TABULER FORM:
PARAMETER WORKERS STAFF
BETTER THAN THIS JOB 50 60
EQUALITING THIS JOB 40 20
LOWER THAN THIS 10 20
GRAPHICAL REPRESENTATION:
WORKERS STAFF0
10
20
30
40
50
60
70
BETTER THAN THISEQUALITING LOWER THAN
INTERPRETATION:
From the above figure we found that workers opinion on better than this job is 50%
and equating this job 40% and lower than is 10% and for staff opinion on better than
this job is 60% and equating this job 20% and lower than is 20%
ANALYSIS:
From the above analysis it is found that opportunities outside salary/comfort/facilities
etc., outside if you leave this job at present workers is 50% and for staff 60%
71
19. Your overall opinion on the top management
TABLER FORM
PARAMETERS WORKERS STAFF
GOOD 60 70
FAIR 30 20
BAD 10 10
GRAPHICAL REPRESENTATION
WORKERS STAFF0
10
20
30
40
50
60
70
80
GOODFAIRBAD
INTERPRETATION:
From the above figure we found that workers opinion on good is 60% and fair 30%
and bad is 10% and for staff opinion on good is 70% and fair 20% and bad is 10%
ANALYSIS:
From the above analysis it is found that your overall opinion on the top management
workers opinion is 60% and for staff opinion 70% majority of employee agree with
top management
72
20. Do you feel it is necessary to involve the worker’s family members in some social activities that will help cordial relations with management
TABLER FORM
PARAMETERS WORKERS STAFF
YES 90 91
NO 10 09
GRAPHICAL REPRESENTATION
WORKERS STAFF0
10
20
30
40
50
60
70
80
90
100
YESNO
INTERPRETATION:
From the above figure we found that workers opinion on yes is 90% and no is 10%
sand for staff opinion on yes is 91% and no 9%
ANALYSIS:
From the above analysis it is found that involve the worker’s family members in some
social activities that will help cordial relations with management workers opinion is
90% and for staff opinion 91% majority of employee agree with top management
73
FINDINGS REGARDING WORKMEN LEVEL
The communication aspect in workers regarding work is only above average and time
taken for that is around 5min, but communication casually is having major position.
The employees are freely communicating with each others.
The relationship among the employees is very strong as they are very helpful
to each other at any circumstances.
The majority of employees are having many dose-aides to them
Most of the employees like to communicate with others.
Moderate number of employees are having very few family friends
Employees most of them get in touch regularly.
Majorities of the employees borrow & lend money from very few others
and there is hardly any such situation where their relationship has been
broken.
All these factors stress only one point, that the employees are having good
relationships among then with respect to each shift.
Almost all Employees are feels satisfies with the encouragement and behavior
of their respective supervisors, and also close to each other.
The majority of employees communicate with staff members also.
But the relationship is not extended to closeness; rather they just make
aware of each other, due to this there is no aspect of disliking as such.
As a result, the majority employees expressed an average feeling regarding
staff members
All the above factors states that the relationship is weak between the staff &
workers.
74
FINDINGS REGARDING STAFF LEVEL
The communication in staff level is high as they are communicating at an
average of 10m regarding work, whereas it was a bit decreased in case of
casual communication.
The staff also helpful & close to each other, and having many close-aides to
them
In the staff there exists, although not majority, a matter of disliking to talk
with very few of their colleagues.
Some of them are also having few family friends, and they are maintaining
few regular contacts
The inter relationship among the staff members is also good.
Staff members also satisfied with the behavior and encouragement of their
superiors.
The superior's closeness with staff is having equal majority for normal as well
as close.
The superiors are having a satisfactory feeling from their respective sub-
ordinates.
The superiors are also moving closely with their respective sub-ordinates as
they involve in informal conversation with then more often.
The sub-ordinates also having close contacts with their respective superior.
The above factors states that the superior-subordinate relationship is very
good,
Majority of the staff is not interested in the way the worker's unions organize
themselves.
75
SUGGESTIONS & RECOMONDATIONS
The communication among the workers as well as staff members is going on
well but it doesn't means to be consistent. Measures should be taken to strike
the right aspect pertaining to them to communicate consistently.
The communication within the each section and department of workers and
staff respectively is fine, but when comes to the matter of different sections,
shifts and departments, it is not at all having even basics also. It is an essential
to have interdepartmental relations, so adequate measures, which cater to the
needs of employees and staff, should be employed.
The response regarding the relationship between workers- supervisors creates
a feeling that there is an congenial work environment. But these responses
may be biased as the employee fear of superiority. This environment should
be maintained to protect the interest of employees.
The workers - staff members relation is a bit drowsy, mutual co-operations in
the work environment should be entertained to develop a sense of belonging
ness.
The workers-union relationship is dominating, such that, all the interests of the
workers are effectively protected by the union. The union's formidable
requests should be granted to maintain these type of relations
The union-management relationship is going nicely till times. This is the most
delicate relationship, where the progress of the company lies on, and this
relationship have constant whistle such that any undesirable effects won't
occur.
76
CONCLUSION:
It has been increasingly realized that the industrial system has brought about a
number of complexities which have rendered the management of people in an
organization more difficult and complicated than man power management in earlier
and simpler societies because free, mobile men and women in modern societies
whose complex and ever changing problems for their managers and employers.
Therefore, today's industrial societies have developed a distinct system of
management based upon the experience of over 300 years.
Modern industrial relations represent a blending of older systems with
innovation introduced as society has changed through the ages. Some features of early
system even now persist, while other features are the result of industrial revolution
and, therefore, represent sharp breaks with traditional, creating challenging problems
for the management for many of them may be opposed by the workers.
The employment relationships are not static but dynamic. The most
important characteristic is the persistence of change. Technological advances
eliminate long established jobs and create opportunities that require sharply different
patterns of experience and education. Higher living standards encourage demands for
new products and services. Economic prosperity permits great economic security, and
public regulation makes the assurance of that security a problem for managers. All of
these changes have made the present system of employment relationships very
complex. Collaboration and cooperation is very necessary to achieve the designated
objectives. Understanding of human behavior is, therefore, very necessary on the part
of those responsible for managing manpower resources.
77
BIBLIOGRAPHY:
1. Essentials of Management HRM & IR, “Weihrich & koontz”
2. Organizational Behaviour Personal Management, “Subba Rao”
3. Prentice Hall of India-1991, “Richard Pettinger, Macmillan”
4. Tata Mcgraw Hill-2000 Himalaya – 2002, “Dale Yoder”
WEBSITES:
WWW.GOOGLE.COM
WWW.HR.COM
WWW.HRCOUNCIL.COM
WWW.HRJOURNALS.COM
78
APPENDIX A:
QUESTIONERS:
1. How are the industrial relations in the company? [ ]
a. Good b. Fair c. To be improved
2. Do you have free access to the top management? [ ]
a. Yes b. No
3. Does the top management listen to you with patience? [ ]
a. Yes b.No
4. Does the management have faith in the employees as one of the main resource?
a. Yes b. No [ ]
5. Whether employees have confidence in the management to run the industry
efficiently? [ ]
a. Yes b. No c. Can’t Say
6. Management always expects more from the employee [ ]
a. Yes b. No
7. The employees expect more benefits from the management [ ]
a. Yes b. No
8. The management is satisfied with employee’s performance [ ]
a. Yes b. No
9. Employees are satisfied with management offers [ ]
a. Yes b. No
10. There is serious conflict between management and employees w.r.t. wages /
salaries a. Yes b. No [ ]
11. Canteen, Recreation, Transport, Accommodation are [ ]
a. Good b. Fair c. Not Ok
79
12. Indiscipline among the employees is [ ]
a. More b. To a little extent c. Normal d. Absent
13. Punishments for indiscipline are: [ ]
a. Harsh b. In proportionate c. Fair d. Medium
14. DO you like your children working in this industry if they are employed
a. Yes b. No c. Can’t Say [ ]
15. Industrial peace, more than the prevailing scenario can be achieved through
a. Increasing wages/other monetary benefits [ ]
b. Through counseling individual workmen c. Can’t say
16. Do you feel it is necessary to involve the worker’s family members in some social
activities that will help cordial relations with management? [ ]
a. Yes b. No
17. Dissatisfaction in various aspects among the employees is more in this
establishment a. Yes b. No c. Normal [ ]
18. Your position in this company when compared to other industries in this area is
a. Better b. On par with c. Lower than other [ ]
19. How are the opportunities outside w.r.t salary/comfort/facilities etc., outside if
you leave this job at present? [ ]
a. Better than this job b. Equaling this job c. Lower than this
20. Your overall opinion on the top management [ ]
a. Good b. Fair c. Bad
80