Introduction of Human Resource Management

Human Resources is an evolving and dynamic field that challenges the ability of even the

most seasoned professional to keep abreast of policies, procedures, compliance requirements, and

best practices. Human resource management has become the central concern of any organization

either in public, private or co-operative sector. Human resources play a vital role in the

development of modern economics. In the changing economic environment, HRM is assuming

much greater importance than ever before. It is conceived to be different from the traditional and

conventional notion of ‘personnel management’. A nation with an abundance of physical

resources will not benefit itself unless human resources make use of them. In fact, human resource

is solely responsible for effective use of physical and natural resource and for the transformation

of traditional economics into modern and industrial economics.

Meaning

Human resource management means employing people developing their resource, utilizing,

maintaining and compensating their services in tune with the job and organizational requirement

with a view to contribute to the organization, individual and the society.

Definition

Human resource management is the central sub-system of an organization and it permeates

all types of functional management viz. production management markefrting management and

financial management.

Michael J. Jucius defined personnel management as “the field of management which has to

do with planning, organization, direction and controlling the functions of procuring, developing,

maintaining and utilizing a labor force, such that the:

Objectives for which the company is established are attained

economically and effectively.

Objectives of all levels of personnel are served to the highest possible degree, and

Objective of society are duly considered and served.

Human Resource Management is an active factor of production; all other factors are capital,

materials, building, plants and machinery etc., all these factors are meaningless if capable persons

are not available to work upon these factors to production. Human brain has unlimited energy to

“think and act”. The high efficiency food quality of work depends upon capability of employees.

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The development of human resources refers to the upgrading of their skills organizational

development and prosperity. The present day business complex environment is associated to

mature and judicious man power supply and enhancing their abilities for the benefits of the

organization.

The HRD concept is new and is used in two terms. Macro, which refers to the improvement

in qualities and productivity of employees, and Micro level, refers to the improvement in the

quality of mangers and employees so as to get higher level of productivity and improvement is the

quality of work.

The HRD is a continuous process which refers to develop effectiveness in a scientific way.

This is a program which is referred to accept all new changes without disturbance to production.

The HRD is related to all-around development of the employees working is an organization.

Evolution of human resource management

The history of development of personnel management in India is comparatively of recent

origin. But Kautilya had dealt with some of the important aspects of human resources

management in his “Arthasastrs” 400 B.C. Government in those days adopted the techniques of

HRM as suggested by Kautilya. In its modern sense it had developed only since independence.

Though the importance of labor officers was recognized as early as 1929, the appointment of

welfare officer to solve labor and welfare problems gained momentum only after the enactment of

the factories Act of 1948.Section 49 of the Act required the appointment of welfare officer in

companies employing more than 500 workers. At the beginning, government was concerned only

with limited aspect of Indian laborers (regulation of recruitment, forwarding and employment)

sent to various British colonies in 1830.

Importance of human resources

The term human resource can also be explained in the sense that it is resource like any

natural resource. It does mean that the management can get and use the skill, knowledge, ability,

etc. Human resources are also regarded as human factor, human asset, human capital and the like.

The terms labor and manpower had been used widely, denoting mostly the physical abilities and

capacities of employees. The term personnel had been used widely in the recent past to denote

persons employed in any services. Thus, this term denotes the employee as a whole but it does not

clearly denote various components of human resource like skill, knowledge, value etc. People in

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any organization manifest themselves, not only through individual come to work place; they come

with not only technical skills, knowledge etc. But also with their personal feeling, perception,

desires, motives, attitude, values etc. therefore, employee management in an organization does

mean management of not only technical skills but also other factors of the human resources.

Features of human resources management

Human resources management is concerned with employees both as individual and as a

group in attaining goals. It is also concerned with behavior, emotional and social aspects of

personnel.

It is concerned with the development of human resource i.e. knowledge, capacity, skills,

potentialities and attaining and achieving employees goals including job satisfaction.

Human resources management covers all levels (low, middle and top) and categories

(unskilled, skilled, technical, professional, clerical and managerial) of employees. It covers

both organized and unorganized employees.

It applies to the employees in all types of organization in the world (industry, trade, service,

commerce, economic, social, religious, political and government departments). Thus, it is

common in all types of organizations.

Human resources management is a continuous and never ending process.

It aims at attaining the goals of organization. Individual and society in an integrated

approach.

Organization goals may include survival growth and development in addition to

profitability, productivity, innovation, excellence etc.

Individual employees-goals consist, challenging works, pride, status, recognition,

opportunity for development etc.

Goals of the society include equal employment opportunity, protecting the disadvantaged

distribution of income of minimizing wage differentials, developing and society in general

by organizing development activities etc.

Human resources management is a responsibility of all line managers and a function of staff

managers and a function of staff managers in an organization.

It is concerned mostly with managing human resources at work.

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Human resources management is the central sub-system of an organization and it permeates

all types of functional management, viz., production management, marketing management

and financial management.

Human resource management aims at securing unreserved cooperation from all employees

in order to attain predetermined goals.

WORKER’S PARTICIPATION IN MANAGEMENT

The concept of workers participation in management is considered as a mechanism where

workers have a say in the decision making process of an enterprise.

Definition

The workers participation in management crystallizes the concept of Industrial Democracy,

and indicates an attempt on the part of an employer to build his employees into a team which

works towards the realization of a common objective.

According to Davis, “It is a mental and emotional involvement of a person in a group

situation which encourages him to contribute to goals and share responsibilities in them.”

Within the orbit of this definition, a continuum, of men management relationship can be

conceived as:

Worker’s control-joint management-joint consultation-workers place consultation-management

supremacy.

In this continuum, workers control represents one extreme which suggests concentration of

all powers in workers, and management supremacy represents the other extreme, which implies a

zealous defense of managerial prerogatives.

“Workers participation in management is a resounding phrase, bridging the past and the

future. It echoes the millennial vision of 19th century thinkers while heralding the evolution of new

forms of industrial organization under 20th century pressures. The word ‘workers’ participation’ is

plentifully supplied with ideas, institutions and opinions.” “ There are two basic ideas in the

concept of workers participation in management: there are two groups of people in an undertaking

(managers and workers) and there are two separate sets of functions to be performed (managerial

and operative).Managerial functions are essentially those concerned with planning, organizing

motivating and controlling, in contrast with “doing” or “operative” work. Memoriam defines it as

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a system of communication and consultation either formal or informal by which employees of an

organization are kept informed about the affairs of the undertaking and through which they

express their opinion and contribute to management decisions.

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SCOPE OF THE STUDY

The scope of the study covers all the measures that come under the workers participation in

the management in an organization. It takes into consideration the activities that are

implemented for the benefit of the employees and the management as a whole.

Before examining the workers participation in the management an attempt was made to

explain the concept, scope and importance of the participative forums in INDIA. Hence

study specially deals with the measures of the participative forums.

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OBJECTIVES OF THE STUDY

The main objective of our survey is to find the effectiveness of the participative forums in

NATIONAL INSURANCE COMPANY LIMITED.

The present study entitled ‘WORKERS PARTICIPATION IN THE MANAGEMENT’ will be

taken with a view to analyse the gap between the promise and the performance of the NIC as far

as the participative measures are concern. More particularly the objectives are:

To find the extent of effectiveness of participative forums.(EEFECIENCY)

To the extent the employees are kept informed of the affairs of the NIC.

(COMMUNICATION)

To the extent the employees are allowed to express their opinion and contribute to the

management decisions.(INVOLVEMENT)

To the extent the education campaigns are carried out.(UPDATION)

To the extent the management encourages the unions involvement.CO-ORDINATION)

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METHODOLOGY OF THE STUDY

The research design indicates the types of research methodology under taken to collect the

information for the study.

I have used both the descriptive and analytical type of research design for the research study. The

main objective of using descriptive research is to describe the state of affairs as it exist at present.

It mainly involves the surveys and fact findings, enquires of different kinds also used for

analytical research design to analyse the existing facts from the data collected from the

employees.

Area of study: The area of the study is confined to the employees of NIC LTD,Rajahmundry

Research instrument:

The structured questionnaire is used as the research instrument for the study.

QUESTIONNAIRE DESIGN:

The questionnaire formed for the research study would be a structured questionnaire in which all

the questions are pre-determined before conducting the survey. The form of question is in the

form of five-point scale.

The questionnaire of the research is framed in the clear manner such that it enables the

respondents to understand and answer the question easily. The questionnaire are designed in such

a way that the questions are short and simple and is arranged in a logical manner.

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LIMITATIONS OF THE STUDY

The duration of the study is limited.

The employees were busy in their work schedule so they were unable to spare

enough time to hive most of the information.

Because of the small size of the survey at the National Insurance company Ltd.

it may or may not reflect the actual opinion of the employees.

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NEED FOR THE STUDY

The organization under study namely, national insurance company ltd.is one of the major

concern in India for various insurances as motor vehicles, health etc.,

The following study wanted to know the perception of the workers regarding the

participative forums. It is also concerned with how effectively the participative forums are

implemented in the organization and how much the employees are allowed to express their

opinion in the management.

The study also overviews the attitude of the management as well as the attitude of the

employees towards each other and how the employees feel being the part of the organization.

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CHAPTER - II

INDUSTRY PROFILE

Meaning of Insurance:

“Insurance is a policy from a large financial institution that offers a person,

company, or other entity reimbursement or financial protection against possible

future losses or damages.”

About Insurance:

Life is a roller coaster ride and is full of twists and turns. You cannot take

anything for granted in life. Insurance policies are a safeguard against the

uncertainties of life. Insurance is system by which the losses suffered by a few are

spread over many, exposed to similar risks. Insurance is a protection against

financial loss arising on the happening of an unexpected event. Insurance policy

helps in not only mitigating risks but also provides a financial cushion against

adverse financial burdens suffered.

Insurance may be described as a social device to reduce or eliminate risk of

life and property. Under the plan of insurance, a large number of people associate

themselves by sharing risk, attached to an individual.

The risk, which can be insured against include fire, the peril of sea, death,

incident and burglary. Any risk contingent upon these may be insured against at a

premium commensurate with the risk involved. Insurance is actually a contract

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between two parties whereby one party called insurer undertakes in exchange for a

fixed sum called premium to pay the other party at the happening of a certain Event.

Insurance is a contract whereby, in return for the payment of premium by the

insured, the insurers pay the financial losses suffered by the insured as a result of

the occurrence of unforeseen events like death or accidents.

With the help of insurance, large number of people exposed to a similar risk

makes contributions to a common fund out of which the losses suffered by the

unfortunate few, due to accidental events, are made.

Insurance is mainly divided in three categories:

1) Life Insurance

2) Medical Insurance

3) General Insurance

1) Life Insurance:

It insures the life of the person buying the Life Insurance Certificate. Once a

Life Insurance is sold by a company then the company remains legally entitled to

make payment to the beneficiary after the death of the policy holder. Insurance

guaranteeing a specific sum of money to a designated beneficiary upon the death of

the insured, or to the insured if he or she lives beyond a certain age.

Life Insurance is the fastest growing sector in India since 2000 as

Government allowed Private players up to 26%. Life Insurance in India was

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nationalised by incorporating Life Insurance Corporation (LIC) in 1956. All private

life insurance companies at that time were taken over by LIC.

Apart from Life Insurance Corporation, the public sector life insurer, there

are 20 other private sector life insurers, most of them joint ventures between Indian

groups and global insurance giants

2) Medical Insurance:

This is also known as mediclaim. Here, the policy holder is entitled to

receive the amount spent for his health purposes from the insurance company.

Insurance against expenses incurred through illness of the insured. The concept of

health insurance was proposed in 1694 by Hugh the Elder Chamberlen from the

Peter Chamberlen family. In the late 19th century, "accident insurance" began to be

available, which operated much like modern disability insurance.

This payment model continued until the start of the 20th century in some

jurisdictions (like California), where all laws regulating health insurance actually

referred to disability insurance. Health insurance, like other forms of insurance, is a

form of collectivism by means of which people collectively pool their risk, in this

case the risk of incurring medical expenses. The collective is usually publicly

owned or else is organized on a non-profit basis for the members of the pool, though

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in some countries health insurance pools may also be managed by for-profit

companies.

It is sometimes used more broadly to include insurance covering disability or

long-term nursing or custodial care needs. It may be provided through a

government-sponsored social insurance program, or from private insurance

companies.

3) General Insurance:

This insurance type involves insuring the risks associated with the general life

such as automobiles, business related, natural incidents, commercial and

residential properties, etc.

In the words of a layman, insurance means managing risk. For instance, in

life insurance segment, the insurance company tries to manage mortality (death)

rates among the wide array of clients.

Insurance other than ‘Life Insurance’ falls under the category of General

Insurance. General Insurance comprises of insurance of property against fire,

burglary etc, personal insurance such as Accident and Health Insurance, and

liability insurance which covers legal liabilities. There are also other covers such as

Errors and Omissions insurance for professionals, credit insurance etc.

Introduction of insurance sector in India

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The Insurance sector in India governed by Insurance Act, 1938, the Life

Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation)

Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and

other related Acts. With such a large population and the untapped market area of

this population Insurance happens to be a very big opportunity in India. Today it

stands as a business growing at the rate of 15-20 per cent annually. Together with

banking services, it adds about 7 per cent to the country’s GDP.

In spite of all this growth the statistics of the penetration of the insurance in

the country is very poor. Nearly 80% of Indian populations are without Life

insurance cover and the Health insurance. This is an indicator that growth potential

for the insurance sector is immense in India. It was due to this immense growth that

the regulations were introduced in the insurance sector and in continuation

“Malhotra Committee” was constituted by the government in 1993 to examine the

various aspects of the industry.

The key element of the reform process was Participation of overseas

insurance companies with 26% capital. Creating a more efficient and competitive

financial system suitable for the requirements of the economy was the main idea

behind this reform.

 

Life Insurance Corporation of India (LIC) continues to account for nearly

75% of life premiums. ICICI Prudential and Bajaj Allianz were the next largest

players, with market shares of 7% and 5%, respectively.

Indian Insurance Market – History

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Insurance has a long history in India. Life Insurance in its current form was

introduced in 1818 when Oriental Life Insurance Company began its operations in

India. General Insurance was however a comparatively late entrant in 1850 when

Triton Insurance company set up its base in Kolkata. History of Insurance in India

can be broadly bifurcated into three eras: a) Pre Nationalisation b) Nationalisation

and c) Post Nationalisation.

Life Insurance was the first to be nationalized in 1956. Life Insurance

Corporation of India was formed by consolidating the operations of various

insurance companies. General Insurance followed suit and was nationalized in

1973.General Insurance Corporation of India was set up as the controlling body

with New India, United India, National and Oriental as its subsidiaries.

The process of opening up the insurance sector was initiated against the

background of Economic Reform process which commenced from 1991. For this

purpose Malhotra Committee was formed during this year who submitted their

report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in

1999. Resultantly Indian Insurance was opened for private companies and Private

Insurance Company effectively started operations from 2001.

Indian Insurance Market- Present

The Indian insurance market in spite of having a history covering almost two

centuries took a turn after the establishment of the Life insurance Corporation in

India in 1956. From being an open competitive market to being nationalized and

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then back to a liberalized market again, the insurance sector has witnessed all

aspects of contest.

The Indian insurance market conventionally focused around life insurance

until recently, a various range of other insurance policies covering sectors like

medical, automobile, health and other classes falling under general insurance came

up, generally provided by the private companies. The life insurance of India added

nearly 7.3% to the GDP of the economy in 2010, an immense growth since 1999,

when the gates were opened for the private company in the market.

The US$ 41-billion Indian life insurance industry is considered the fifth

largest life insurance market, and growing at a rapid pace of 32-34 per cent

annually, according to the Life Insurance Council.

Life Insurance Corporation of India (LIC) registered an 83 per cent increase

in new business income in March 2010, while private players posted a 47 per cent

growth in new business premium.

Moreover, according to IRDA, insurers sold 10.55 million new policies in

2009-10 with LIC selling 8.52 million and private companies 2.03 million policies.

At the end of March 2010, LIC held 65 per cent market share in terms of new

business income collection with the private sector contributing the remaining 35 per

cent share in 2009-10.

According to IRDA, total premium collected in 2009-10 was US$ 24.64

billion, an increase of 25.46 per cent over US$ 19.64 billion collected in 2008-09.

A growth of 18 per cent is expected in total premium income and is likely to cross

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the US$ 64.93 billion mark, according to B Mathur, Secretary General, Life

Insurance Council.

According to data released by IRDA, the general insurance industry recorded

13.42 per cent growth in gross premium collected during 2009-10. The industry

collected gross premium of US$ 7.84 billion in 2009-10 compared with US$ 6.91

billion in 2008-09. The public sector players posted 13.85 per cent growth in gross

premium in 2009-10. At the same time, private players recorded a 12.82 per cent

increase in gross premium till March 2010.

During April-May 2010, non-life insurers mopped up US$ 1.59 billion

against US$ 1.34 billion in the previous year, registering an increase of 19 per cent

according to IRDA data. The four state-run insurers fared better than their private

counterparts, with New India Insurance collecting the maximum premium of US$

294.5 million in April and May 2010, compared to US$ 253.15 million in the

previous year, growing by 16.34 per cent.

According to the IRDA's Summary Reports of Motor Data of Public and

Private Sector Insurers - 2008-09, nearly 30 million vehicle policies were issued and

a total premium worth US$ 1.83 billion was collected.

The Future of Indian market

As per the report of 'Booming Insurance Market in India' (2008-2011),

concentration of insurance markets in many developed countries of the world has

made the Indian insurance market more magnetic in terms of international insurance

players. Furthermore, the report says

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Home insurance sector is likely to achieve a 100% growth since home

insurance are made compulsory for housing loan approvals by the financial

institutions.

In the coming three years Health insurance sector is all set to become the

second largest business after motor insurance.

During the period of 2008-09 to 2010-11 the non life insurance premium is

likely to have a growth of 25%.

In terms of the key drivers that underpin our forecasts, we are looking for

non-life penetration to change from 0.56% in 2009 to 1.17% in 2014, and for life

density to rise from US$42 to US$60. The report’s proprietary Insurance Business

Environment Rating for India is 53.4.

Insurance Regulatory and Development Authority

The Insurance Regulatory and Development Authority (IRDA) is a national

agency of the Government of India, based in Hyderabad. It was formed by an act of

Indian Parliament known as IRDA Act 1999, which was amended in 2002 to

incorporate some emerging requirements. J.Harinarayan is the chairman of IRDA.

On the recommendation of Malhotra Committee, an Insurance Regulatory

Development Act (IRDA) passed by Indian Parliament in 1993. Its main aim was to

activate an insurance regulatory apparatus essential for proper monitoring and

control of the Insurance industry. Due to this Act several Indian private companies

have entered into the insurance market, and some companies have joined with

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foreign partners. In economic reform process, the Insurance Companies has given

boost to the socio-economic development process. The huge amount of funds that

are at the disposal of Insurance Companies are directed as desired avenues like

housing, safe drinking water, electricity, primary education and infrastructure.

Mission of IRDA

"To protect the interests of the policyholders, to regulate, promote and ensure

orderly growth of the insurance industry and for matters connected therewith or

incidental thereto."

Impact of IRDA on Indian Insurance Sector

The creation of IRDA has brought revolutionary changes in the Insurance

sector. In last 10 years of its establishment the insurance sector has seen tremendous

growth. When IRDA came into being; only players in the insurance industry were

Life Insurance Corporation of India (LIC) and General Insurance Corporation of

India (GIC), however in last decade 23 new players have emerged in the filed of

insurance. The IRDA also successfully deals with any discrepancy in the insurance

sector.

Powers and Functions of IRDA

1. It issues the applicants in insurance arena, a certificate of registration as well as

renewal, modification, withdrawal, suspension or cancellation of such registrations.

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2. It protects the interests of the policy holders in any insurance company in the

matters related to the assignment of policy, nomination by policy holders, insurable

interest, and resolution of insurance claim, submission value of policy and other

terms and proposals in the contract.

3. One of the major functions of IRDA includes endorsing competence in the

insurance business. Apart from this, upholding and regulating professional

organizations in insurance and re-insurance business is also a major duty of IRDA.

4. It is meant to specify the proportion of premium income of the insurer to finance

policies

5. IRDA is also entitled to for asking information, undertaking inspection and

investigating the audit of the insurers, mediators, insurance intermediaries and other

organizations related to the insurance sector.

6. It is also concerned with the regulation of the rates, profits, provisions and

conditions that may be offered by insurers in respect of general insurance business

if it is not controlled or regulated by the Tariff Advisory Committee.

7. IRDA specifies the terms and pattern in which books of accounts are to be

maintained and statement of accounts shall be provided by insurers and other

insurance mediators.

8. It is also empowered to be involved in the arbitration of disagreements between

insurers and intermediaries or insurance intermediaries.

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Some of the Key Words in Insurance

1. Insurer:

“ The party to an insurance arrangement who undertakes to indemnify for

losses is called insurer.”

2. Insured:

“ The person, group, or property for which an insurance policy is issued.

or The condition of having insurance is called insured ”.

3. Policy:

“ A contract of insurance, describing the term, coverage, premiums and

deductibles is called policy ”

4. Policy holder:

“ The owner of an insurance policy; usually, but not always, the insured ”.

5. Agent:

“ Individual who is licensed by a state to sell insurance for one or more

specific insurance companies”.

6. Premium:

“ The periodic payment made on an insurance policy. also called premium ”.

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7. Claim:

“ Notification to an insurance company requesting payment of an amount due

under the terms of the policy. also called claim ”.

Challenges facing Insurance Industry

1. Threat of New Entrants:

The insurance industry has been budding with new entrants every other

day. Therefore the companies should carve out niche areas such that the threat of

new entrants might not be a hindrance. There is also a chance that the big players

might squeeze the small new entrants.

2. Power of Suppliers:

Those who are supplying the capital are not that big a threat. For instance,

if someone as a very talented insurance underwriter is presently working for a small

insurance company, there exists a chance that any big player willing to enter the

insurance industry might entice that person off.

3. Power of Buyers:

No individual is a big threat to the insurance industry and big corporate

houses have a lot more negotiating capability with the insurance companies. Big

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corporate clients like airlines and pharmaceutical companies pay millions of dollars

every year in premiums.

4. Availability of Substitutes:

There exist a lot of substitutes in the insurance industry. Majorly, the large

insurance companies provide similar kinds of services – be it auto, home,

commercial, health or life insurance.

Brief history of Insurance Companies in India

There are so many insurance companies were established in India.

1. Religare Life Insurance:

AEGON Religare Life Insurance Company Ltd is a joint venture of AEGON,

Religare and Bennett, Coleman & Company. AEGON in one of the world's leading

life insurance and pension groups. Religare is a prominent player in the field of

integrated financial services in India. On the other hand, Bennett- Coleman &

Company is India’s largest media house. The insurance company began its

operation in July 2008. Within a short span of time, it has spread across India, by

opening over 30 branches in thecountry.

AEGON Religare Life Insurance offers multitude of benefits to its customers.

It offers policy servicing on the phone via Interactive Voice Response System

(IVR). This is done by issuing the customer a T-Pin for authentication. It boasts of

being the first insurance company in India to include the customer’s medical report

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in the policy kit. Talking about the individual stake holders, AEGON serves over 40

million customers in as many as 20 markets spread throughout the Americas, Asia

and Europe. Headquartered in The Hague, the Netherlands, AEGON carries out

major operations in the United States, the Netherlands and the United Kingdom.

Religare Enterprises Ltd is a significant player in the field of Retail,

Institutional and Wealth spectrums. It has a diverse and wide base of clientele. REL

holds 44% equity in AEGON Religare Life Insurance Co Ltd. Talking about

Bennett, Coleman & Co. Ltd. it is a mammoth in the field of media, since it is

associated with the Times Group, India's largest media house. The Joint Venture of

the three giants (of their respective fields) has given rise to AEGON Religare Life

Insurance.

2. Future Generali Life Insurance:

Future Generali India Life Insurance Co. Ltd. is one of the rapidly growing

Insurance companies in India. The Company is a joint venture between the India-

based Future Group and the Italy-based Generali Group. Future Generali group is

present in both the Life and Non-Life businesses in India as Future Generali India

Life Insurance Co. Ltd. and Future Generali India Insurance Co. Ltd.

Future Group is one of India’s leading business houses with multiple

businesses spanning across the country. Retail is the main business activity of

Future Group, but its presence can also be seen in consumer finance, capital,

insurance, leisure and entertainment, brand development, retail real estate

development, retail media and logistics. Future Group believes in developing strong

insights on Indian consumers and building businesses based on Indian ideas.

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Generali Group was established in Trieste on December 26, 1831. It is an

international group working in more than 40 countries with insurance companies,

financial companies and real estate sectors. After doing business in Central Eastern

Europe, Generali Group has started to develop business in the principal markets of

the Far East, including China and India. Generali Group ranks among the top three

insurance groups in Europe and the 30th largest company in the Fortune 500

international ranking.

3. SBI Life Insurance :

SBI Life Insurance offers a slew of products designed for various segments of

society. These include money back products, pension products, protection cum

savings products, and unit linked products. All these products cater to various

requirements of its end users

4. Bajaj Allianz Life Insurance :

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between Allianz SE,

one of the world's largest insurance companies, and Bajaj Finserv. Allianz SE is a

leading insurance corporation globally and one of the largest asset managers in the

world, that manage assets worth over a Trillion. With over 115 years of financial

experience, Allianz SE is present in over 70 countries around the world. Bajaj

Allianz is into both life insurance and general insurance. Today, Bajaj Allianz is one

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of India's leading and fastest growing insurance companies. Currently, it has

presence in more than 550 locations with over 60,000 Insurance Consultants.

In June 2008, Bajaj Allianz entered into partnership with Thomas Cook India

to provide travel finance. Bajaj Allianz Life Insurance ensures excellent insurance

and investment solutions by offering customized products, supported by the best

technology. Market share of the company in 2009 is 6.98%.

5. Bharti Axa Life Insurance:

Bharti AXA Life Insurance Co. Ltd. is a joint venture between Bharti - one of

India’s leading business groups with interests in telecom, agri business and retail,

and AXA - global leader in financial protection and wealth management. Bharti has

recently entered into the retail business under a company called Bharti Retail Pvt.

Ltd. AXA's operations are diverse geographically, with major operations in Western

Europe, North America and the Asia/Pacific area. It also has operations in Australia,

New Zealand, Hong Kong, Singapore, Indonesia, Philippines, Thailand, and China

Bharti AXA Life Insurance has a 74% stake from Bharti and 26% stake of

AXA in the joint venture. In December 2006, the Company launched its operations

in India. At present, it has more than 5200 employees working over 12 states in the

country. With the continuous expansion, Bharti AXA Life Insurance is making

itself proactive to cater to insurance and wealth management needs of people.

6. Birla Sun-Life Insurance :

Birla Sun Life Insurance Co. Ltd. is a joint venture between Aditya Birla

Group, an Indian multinational corporation, and Sun Life Financial Inc, a leading

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global insurance company. Birla Sun Life Insurance is distinguished as the first

company in the sector of financial solutions to begin Business Continuity Plan. This

insurance company has pioneered the unique Unit Linked Life Insurance Solutions

in India. Within 4 years of its launch, BSLI became one of the leading players in the

industry of Private Life Insurance Scheme. Market share of the company in 2009 is

2.11%. Birla Sun Life Insurance believes in passion, integrity, speed, commitment

and seamlessness. The mission of the company is to help people with risk

management. It also helps in managing the financial situation of firms as well as

individuals.

7. HDFC Standard Life Insurance :

Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is

a joint venture between Housing Development Finance Corporation Limited (HDFC

Limited) - India's leading housing finance institution, and a Group Company of the

Standard Life Plc, UK. The Company is one of leading private insurance

companies, offering a range of individual and group insurance solutions, in India.

Being a joint venture of top financial services groups, HDFC Standard Life has

adequate financial expertise to manage long-term investments safely and

resourcefully.

HDFC Standard Life Insurance offers a range of individual and group

solutions, which can be easily personalized to specific needs. Its group solutions

have been planned to offer complete flexibility, together with a low charging

structure. As of 31 December, 2008, the Company's new business premium income

stood at Rs.1,839.70 Crores; it has covered over 812,811 lives so far. Market share

of the company in 2009 is 2.88%.

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8. IFFCO-Tokio General Insurance

Initiated in December 4, 2000, IFFCO-Tokio General Insurance (ITGI)

Company is a cooperative undertaking by the Indian Farmers Fertilizer Co-

operative (IFFCO) and its associate and Tokio Marine and Nichido Fire Group (the

largest listed insurance group in Japan), to deal in the insurance sector of India.

With a wide network of 51 'Strategic Business Units' and 110 offices all over India,

the company serves its customers and potential customers, with an array of uniquely

customized policies. It covers each stratum of the society, right from farmers to

India's largest automobile manufacturers.

While ITGI gets its technical support for underwriting and reinsurance from

Tokio Marine, the risk management is sourced from Tokio Risk Consulting (TRC).

Apart from dealing with the conventional insurance schemes, the company has also

come up with niche products like credit insurance, fine arts insurance, P & I

insurance, errors & omissions policy for the IT Sector and so on. ITGI has also

centered its activities keeping into mind the rural segment. It has commenced

various products such as Sankat Haran Bima Yojana, Mausam Bima Yojana,

Mahila Suraksha Bima Yojana and Janata Bima Yojana for the masses. ITGI is also

credited with being the first company to underwrite mega policies for a fertilizer

and an automobile company.

9. Aviva Life Insurance :

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Aviva Life Insurance Company India Ltd established in the year 2004. It is a

private insurance company, formed by a joint venture between the Aviva insurance

group of UK and the Dabur group of India. In reference to the government

regulations, Aviva holds 26 percent stake and the Dabur group holds the balance 74

percent share in the joint venture. Not only largest in the UK, Aviva is also known

as the fifth largest insurance group in the world. Since 1834, Aviva is ensuring the

lives of Indians. At the time of nationalization, Aviva was the largest foreign insurer

in India in terms of the compensation paid by the Government of India.

Aviva is distinguished for being the first foreign insurance company to set up

its representative office in India, in 1995. Aviva Life Insurance Company

established the concept of Bancassurance in India, and has leveraged its global

expertise in Bancassurance successfully here. The company boasts of 223 branches

in India, supporting its vast distribution network. Aviva offers various products that

are meant to provide customers flexibility, transparency and value for the money.

10. Agriculture Insurance Company of India:

Agriculture Insurance Company of India Limited (AIC) is an Insurance

company formed in order to serve the needs of farmers and other people involved in

agriculture. It also aims to make rural India step forward towards a sustainable

actuarial management. AIC was incorporated along with General Budget of the F.Y.

2002-03. AIC has now taken over National Agricultural Insurance Scheme and also

aims to transact other insurance businesses directly or indirectly related with

agriculture or agricultural aided activities in future.

Branches and Business

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AIC is a public undertaking catering to the needs of 20 million farmers

throughout the country. It currently provides an area and weather based crop

insurance programs to almost 500 districts of India. AIC has 17 regional offices

throughout the country with their headquarters located at New Delhi. The

Agriculture Insurance Company of India Limited aims to accentuate the economic

growth rate of the country by bringing financial stability in the rural part of the

country. It is also entitled to provide innovative rural oriented and farmer friendly

policies in order to ensure protection from natural perils and risks in agriculture

related business.

11. ING Vysya Life Insurance:

Established in India in September 2001, ING Vysya Life Insurance Company

Limited is a joint venture between Vysya Bank, which is one of the largest private

sector banks in India, and ING Insurance Co., which is the world's second largest

life insurance company. This private life insurance company has around 140

branches all over India, with head office in Bangalore.

ING Vysya Life Insurance Co. has around 3000 employees with over 21,000

sales insurance agents and brokers. ING Vysya Life presently has around 4.5 lakh

customers, and is making a total income of Rs. 400 crore.

ING Vysya Life Insurance gives you an opportunity to fulfill your

responsibilities towards your family. The ING Vysya Life protection plans provide

financial security to your family in your absence. This company also provides

special policies, such as, Children's Plans; Retirement Plans; Investment Plans and

Savings Plans, which help you to secure your future financially. It also provides

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Life Insurance, Medical Insurance, General Insurance, Long-Term Care Insurance,

Group Insurance, Company Insurance and Financial Services Insurance Products.

12. TATA AIG Life Insurance :

Tata AIG Life Insurance Company Limited, which is a joint venture between

Tata Group and American International Group, Inc. (AIG), offers a number of

standard and custom-made life insurance policies. Tata is one of the oldest and

leading business groups of India. Tata Group has had a long association with India's

insurance sector being the largest insurance company in India prior to the

nationalisation. American International Group, Inc (AIG) is the leading U.S. based

international insurance and financial services organization.

13. Met Life Insurance :

MetLife India Insurance Co. Pvt. Ltd is a joint venture between MetLife

Group and its Indian partners, including J&K Bank, Dhanalakshmi Bank, Karnataka

Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu.

MetLife is insuring the lives of the people for around 140 years. MetLife is 88 of

the top one-hundred FORTUNE 500 companies. MetLife entered Indian insurance

sector in 2001.

MetLife was the first insurance company which established a financial

holding company with a nationally chartered bank. In 2005, Working Mother

Magazine honored MetLife Insurance Co. as one of the "100 Best Companies for

Working Mothers". In 2005, the company was listed among the Top 50 Companies

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for Diversity. In 2006, MetLife was named to the National Association for Female

Executives' annual list of Top 30 Companies for Executive Women. Today, when

people are feeling a greater financial burden than ever before, MetLife is helping

millions of its customers in creating their own personal safety net by taking

insurance plans.

14. Sahara India Life Insurance Company Limited:

The Sahara Pariwar, popularly known as the world's largest 'family' with

diversified business interests, is a recent entrant in the field of life insurance. Its

insurance company - Sahara India Life Insurance Company Ltd. was granted license

by the insurance regulator - the IRDA, on 6 February 2004. With this approval,

Sahara Life Insurance becomes the first wholly Indian-owned company in the

Indian life insurance market without any collaboration with the organizations

abroad. The paid up capital of the insurance company at the time of its

commencement was Rs 157 Crore. The Chairman of Sahara Pariwar, Subrata Roy

Sahara, is also the chairperson of Sahara Life Insurance Company

Limited.

The insurance plans offered by Sahara India Life Insurance Company

Limited are unique in their own terms. The company offers both individual and

group insurance products. Through the different insurance plans, the company aims

to cater to the different needs of the Indian society. For instance, the Sahara Jan

Kalyan group scheme is formulated to address the life insurance needs of the

financially weaker sections of the Indian population. One of the highlighting points

of the scheme is accident benefit. Apart from the working and the dependent

population, the insurance plans formulated by Sahara India Life Insurance Company

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Limited are beneficial for the retired people as well. The pension plans of the

company (such as Sahara Amar Jeevan) help the policy holder to live a frivolous

and relaxed life after retirement. As per the plan, the person holding the policy is

subjected to do monetary savings in little amounts per month. Talking about the

individual plans, Sahara Sanchay - R scheme and Sahara Samarth are also beneficial

in many ways.

15. Kotak Mahindra Old Mutual Life Insurance:

Founded in 2001, Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint

venture between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak

Mahindra is one of India's leading financial institutions which offer a range of

financial services, such as, commercial banking, stock broking, mutual funds, life

insurance, and investment banking. And, Old Mutual is an international insurance

and investment management company based in London, offering a diverse range of

financial services in South Africa, the United States and the United Kingdom since

more than 150 years.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a company which offers

Life Insurance products. It is one of India's most rapidly growing insurance

companies, employing over 1000 people, across various offices in India.

Vital Details:

The headquarters of Life Insurance Corporation of India are located in

Mumbai, and as of April 2009 it has 8 zonal offices, 101 divisional offices and 2048

branches located in different towns and cities of India. Along with a workforce of

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112,184 employees serving the institution, more than 1 Million agents of the Life

Insurance Corporation of India are helping the people nationwide in adopting the

various life insurance policies being offered by the corporation. Apart from India,

LIC is also present in 12 other countries currently, fulfilling the life insurance needs

of its overseas customers most of which are Non Resident Indians (NRIs).

During the financial year 2006-07, the total number of Life Insurance

Corporation of India policy holders were more than 200 Million, which was equal to

the population of fourth largest populous country in the world at that time.

Subsidiaries

Life Insurance Corporation of India has a number of subsidiaries which help

it in leveraging its potential to the maximum, providing an enhanced set of

diversified services to its customers. These subsidiaries include LIC International,

LIC Nepal, LIC Lanka, LIC Housing Finance and LICHFL Care Homes.

16. Universal Sompo General Insurance Co. Ltd :

Universal Sompo General Insurance Co. Ltd. is a Public-Private Partnership

Joint Venture between Allahabad Bank, Sompo Japan Insurance Inc., Dabur

Investments, Karnataka Bank and Indian Overseas Bank. Insurance Regulatory and

Development Authority granted the License and Certificate of Registration to the

company in November 2007. Of all the five partnering companies, Sompo Japan

Insurance Inc. is a Fortune 500 company based in Tokyo, Japan. With a 15,000

strong workforce and a capital worth 70 Billion Yen, the company earned Rs.

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50,000 Crore as total premium income for the year 2006-2007, which is almost

twice the premium income of the General Insurance Industry in India.

Products and Services:

Universal Sompo offers a wide variety of insurance products and services to

its customers. Its insurance products can generally be classified in Retail and

Commercial categories, which include customized packages for Personal Accident

and Disability, Home, Property, Motor Vehicles, Health etc. The company also

provides specialized packages for Small and Medium Enterprises (SMEs) and

Corporates such as Operational Insurance, Project Insurance, Liability and

Employee Benefit.

17. IDBI Fortis Life Insurance:

IDBI Fortis Life Insurance Co. Ltd is a joint venture of IDBI Bank, Federal

Bank (India) and Fortis Insurance International. The Certificate of Registration has

been issued by the Insurance regulator IRDA to this Insurance Company on 19th

December 2007. According to the agreement, IDBI will have a 48-per cent stake in

the venture, while Fortis and Federal Bank would have 26-per cent stake each.

While IDBI and Federal Bank are major Indian banks, Fortis has the expertise of

bancasurance across global markets. It is one of the best names in the insurance

business in Europe and has successful joint ventures in various Asian countries.

IDBI Fortis Life Insurance has become 18th life insurer in India.

Founded in 1956, IDBI Ltd. is India’s premier industrial development bank.

Today, it is amongst India’s most famous commercial banks which provide a wide

range of innovative products and services. IDBI Bank has around 490 branches and

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more than 600 ATMs all over India. IDBI is a also a part of development activities,

as it has been instrumental in sponsoring the development of key institutions

involved in India’s financial sector, such as, the Securities and Exchange Board of

India (SEBI), National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd (NSDL).

18. Max New York Life Insurance :

Max New York Life Insurance Company Limited is a joint venture between

Max India Limited, which is a one of India's leading multi-business corporate, and

New York Life International, which is a Fortune 100 company & global expert in

life insurance. Max New York Life Insurance started its commercial operations in

India in 2001. It is the first life insurance company in India to be awarded the IS0

9001:2000 certification. The company has around 133 offices all over the country.

Max New York Life offers a variety of flexible products covering both life

and health insurance including 8 riders that can be customized to over 800

combinations which enable the customers to choose the policy that suits their needs.

Max New York Life also offers 6 products and 7 riders in group insurance business.

The company has a plan for every need, designed as to meet your long term

financial goals & aspirations. They help you fulfilling your dreams & commitments.

Market share is 7.3%. in 2009.

19. United India Insurance :

United India Insurance Company Limited is a leader in the business of

General Insurance in India. It came into being on 18 February 1938. However, the

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General Insurance business was nationalized in the country in 1972, the United

India Insurance was then merged with 12 Indian Insurance Companies, 4

Cooperative Insurance Societies, Indian operations of 5 Foreign Insurers, and the

General Insurance operations of southern region of Life Insurance Corporation of

India. The company has progressed tremendously since nationalization and today

stands as one of the most trustworthy name in the Insurance sector.

Branches and Business

The United India Insurance Company Limited is one of the biggest

companies in India with more than 20000 offices of the company spread in the

length and breath of India. The company today, claims to cover more than 1 Crore

policy holders under its insurance policies. With an efficient workforce of over

21000, the company claims apart from all the major cities of the country also claims

its presence in more than 200 tier II and III towns and villages through their

innovative Micro Offices. However, the headquarters the company is situated in

Chennai, India.

20. New India Assurance:

Founded by the House of Tata Founder member - Sir Dorab Tata, The New

India Assurance Company came into being on July 23, 1919 and is today, ranked as

number 1 insurance company in the Indian market. Consequent to passing of the

General Insurance Business Nationalisation Act in 1972, wherein 21 Foreign and 11

Indian Companies were amalgamated, The New India Assurance was one of them.

It was nationalized in 1973. The company is credited with a lot of firsts in its 90

years of service. A pioneer in satellite insurance, it holds a large number of offices,

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both in India and abroad.

The New India Assurance Company boasts of having highly skilled personnel

and a total of 1068 fully automated offices, across India. With a superior capital

position, strong operating performance and strong market position as its base, The

New India Assurance has become the sole company to extend noteworthy

operations, in the international forum. Initiated its overseas operations in 1920, the

company has gone a long way, since then. Presently, the company is functioning in

24 countries such as Japan, U.K, Middle East, Fiji, Australia, and so on, with a

network of 19 branches, 12 agencies, 2 each of associate companies and subsidiary

companies.

21. National Insurance Company Ltd :

After the passing of the General Insurance Business Nationalisation Act in

1972, National Insurance Company Limited, (which was incorporated in 1906 and

registered in Kolkata) became one of the four subsidiaries of General Insurance

Corporation of India (GIC). Wholly owned and controlled by the Government of

India, it continued its operation as a GIC subsidiary, until the August of 2002.

Subsequent to the notification of the General Insurance Business (Nationalisation)

Amendment Act, on August 7, 2002, National Insurance Company Limited (NIC)

de-linked from its holding company GIC and started operating, as a Government of

India undertaking.

NIC has its head quarters in Kolkata. Being one of the leading public sector

insurance companies of India, it effectively carries out the general insurance

business in India. With a workforce of more than 16,000 personnel, NIC's has about

1000 offices, covering almost the entire country.

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COMPANY PROFILE

NATIONAL INSURANCE COMPANY LTD

National Insurance Company (NIC) was incorporated on 6th December 1906 at the

height of the country’s nationalist Swadeshi movement as an expression of the

Indian aspiration to establish a strong indigenous Company even in the midst of

foreign rule. Today, 107 years after its incorporation, NIC stands tall as the oldest

insurance company in India and the only PSU non life insurance Company

headquartered in the Eastern part of the country.

 

 NIC has Strength of more than 15,000 skilled Human assets and 1340 offices

including 373 Business Centers pan India. These Business Centers have been

successful in reaching general insurance to hitherto unrepresented areas and

segments across the country and stands as a model platform for penetration of the

Insurance market.The Company also has operations in Nepal.

 

 As the Market Leader in two zones(North & East India) NIC has been recognized

as “BEST IN SERVICE” in the MOTOR and HEALTH classes of Business which

constitute 63% of the Indian Non Life Insurance Market.

 

Ahead of its time, NIC was the First mover in customizing general insurance

Products. The Industrial All Risks Policy, Office Package Policyand the Farmers

Package Policy are some of its innovations. NIC’s Health Policy for Senior Citizens

(Varistha Mediclaim) launched by the Hon’ble President of India, His Excellency,

Dr. A P J Abdul Kalam, and its Policy for students, Amartya Siksha Yojana

Policy launched by  the Nobel Laureate himself, have also found favour with the

Target Groups.

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 NIC also pioneered;

 OTHER AWARDS AND RECOGNITION:

 These giant steps taken by National Insurance in making general insurance

Products affordable India’s uninsured citizenry and Services accessible in uncharted

geographies, have been recognised by opinion making bodies and  Illustrious

organizations.

 

For his efforts in“steering NIC’s  MOBILE PLUS SOLUTION which leverages

Technology and innovation to reach out to customers and serve them better”  NIC

CMD Shri N S R Chandraprasad was conferred the prestigious SKOCH PERSON

OF THE YEAR AWARD by Shri C Rangarajan, Chairman EAC to the Prime

Minister

Our Heritage

NIC is the oldest Insurance Company in India. Since incorporation in the year 1906,

NIC has been carrying on general insurance business under private management

until 1972, when its services were dedicated to the nation by the General Insurance

Nationalization Act. NIC started functioning as a subsidiary of the General

Corporation of India (GIC) taking in its fold 22 foreign and 11 Indian Insurance

Companies which were amalgamated with it.

Since then, NIC have been in the service of the nation carrying on general insurance

business guided by our mission and values.

Vision & Mission

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Vision

Empowering everyone live their dreams.

Mission

Create unmatched value for everyone through dependable, effective, transparent

and profitable life insurance and pension plans.

Our Goal

Reliance Life Insurance would strive hard to achieve the 3 goals mentioned

below:

Emerge as transnational Life Insurer of global scale and standard

Create best value for Customers, Shareholders and all Stake holders

Achieve impeccable reputation and credentials through best business

practices

INCLUSIVE GROWTH

Fulfilling its prime Mission of making general insurance services accessible to

the citizens of India, National Insurance (NIC) NIC continues to play a catalyst’s

role in reaching general insurance services to the underserved and un-penetrated

areas of the country skillfully leveraging Technology enabled mechanisms to

serve this purpose. 

  Taking a lead role in Government of India programmes:

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  NIC services millions under the Social Sector schemes such as the Universal

Health Insurance,  Rashtriya Swasthya Bima Yojana, Rajeev Gandhi

Jeevandayee Yojana etc. Under Micro Insurance NIC has ensured Last mile

coverage by making insurance services available in Tier 1V, V and VI cities. In

the rural sector as well as In the lowest penetrated areas (15 states and Union

territories based on IRDA data for 2010-11) in the Northern and Eastern regions

in India, National Insurance has expanded its footprint by opening new offices

and introducing need based products.

  OFFICE ON WHEELS

The First- of- its- Kind “Office on Wheels” has been introduced in 4 cities of

Kolkata, Chandigarh, Mumbai and Bangalore. These mobile vans,

customized as Offices, are equipped to issue policies online. 24 more OOWs

are planned this fiscal to reach general insurance services almost to the

doorstep.

 All these Financial Inclusion initiatives are supported by robust Technology-

driven infrastructure which enables Prompt Service, Hassle Free processes

and Fair settlements.

THEORETICAL FRAME WORK

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The concept of workers participation in management is considered as a mechanism where

workers have a say in the decision making process of an enterprise.

The workers participation in management crystallizes the concept of Industrial Democracy,

and indicates an attempt on the part of an employer to build his employees into a team which

works towards the realization of a common objective.

According to Davis, “It is a mental and emotional involvement of a person in a group

situation which encourages him to contribute to goals and share responsibilities in them.”

Within the orbit of this definition, a continuum, of men management relationship can be

conceived as:

Worker’s control-joint management-joint consultation-workers place consultation-management

supremacy.

In this continuum, workers control represents one extreme which suggests concentration of

all powers in workers, and management supremacy represents the other extreme, which implies a

zealous defense of managerial prerogatives.

“Workers participation in management is a resounding phrase, bridging the past and the

future. It echoes the millennial vision of 19th century thinkers while heralding the evolution of new

forms of industrial organization under 20th century pressures. The word ‘workers’ participation’ is

plentifully supplied with ideas, institutions and opinions.” “ There are two basic ideas in the

concept of workers participation in management: there are two groups of people in an undertaking

(managers and workers) and there are two separate sets of functions to be performed (managerial

and operative).Managerial functions are essentially those concerned with planning, organizing

motivating and controlling, in contrast with “doing” or “operative” work. Memoriam defines it as

a system of communication and consultation either formal or informal by which employees of an

organization are kept informed about the affairs of the undertaking and through which they

express their opinion and contribute to management decisions.

Formal Vs. Informal

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The forms of workers participation in management depend on the differences in the levels of

management, the subject-matter of participation, the strength of the union and the pattern of

industrial relations. The important forms in which the workers could participate in management

are collective bargaining, joint decision-making, consultation and information sharing. They may

take the form of formal organizations like words committees, joint management councils or an

informal system, for instance, a supervisor consulting a worker before taking any decision in

which the latter is interested.

Different Views

The scope, extent and the successful working of the participative management depends to a

great extent on the objectives and the three important factors of the system of industrial relation

viz., the employee, the employer and the government. The objectives as viewed by these three

parties contradict with each other in India. The workers expect that workers participation in

management schemes will lead to the achievement security of employment, better wages, bonus

etc. The employers are in the maximization of profit through increased production and

minimization of expenditure. The government expects the scheme to bring about closer

association between labor and management and industrial peace. Viramani viewed that it is this

variance in the objective of participation as perceived by the three sectors that is responsible for

the unsuccessful functioning of schemes of participative management.

Objectives of workers participation in management

The main objectives of workers participation in management include:

To promote increased productivity for the advantage of the organization, workers and society

at large.

To provide a better understanding to employee about their role and place in the process of

attainment of organizational goals.

To satisfy the workers social and esteem needs.

To strengthen labor management co-operation and thus maintaining industrial peace and

harmony.

To develop social education for effective solidarity among the working community and for

tapping latent human resources.

An ideological point of view to develop self-management in industry.

45

An instrument for improving efficiency of the company and establishing harmonious

industrial relations.

To built the most dynamic human resource.

To built the nation through entrepreneurship and economic development.

Participation and motivation

Participation provides greater autonomy for subordinates and often leads to increasing

motivation for:

Participation permits a more balanced interaction pattern and therefore results in less

resistance to innovation.

It permits members of the group to unfreeze their attitudes and engage in catharsis.

It permits leader to reinforce their position. They enhance their status both by taking a leading

part in making the decision and through inducing group member to abide by it.

It enables the subordinate to feel that an exchange relation has been set up since the boss

listens to his problems and permits them to be corrected.

It may permit the subordinate to feel that doing the job well provides him with an opportunity

to demonstrate skills which he values high i.e., it provides him an opportunity for achievement

from work.

It subjects the individual to certain group pressures to implement the decision which the group

participated in making it.

Essential condition for successful working of WPM

The success of workers portion in management depends upon the following

conditions

The condition and outlook of the parties should be enlightened and impartial so that a free and

frank exchange of thoughts and opinions could be possible. Where a right kind of attitude

exits and proper atmosphere prevails the process of participation is greatly stimulated.

Both parties should have genuine faith in the system and in each other and be willing to work

together. The management must give the participating institutions its rightful place in the

managerial organization of the undertaking and implementing the policies of the undertaking.

The labor, on the other hand must also whole heartedly co-operate with the management

through its trade unions. The foreman and supervisory cadre must also lend their so that the

accepted polices could implement with any also lend their full support.

46

The experiment of labor participation in management must be given a wide publicity in order

that the idea of participation is ingrained in the mind of those who are to implement the

scheme. Lectures, discussions, film shows, conferences, seminars and other methods of

propaganda may be fruitfully employed to create enthusiasm about the scheme among the

management as well as the workers.

Participation should be real. The issue related to increase the production and productivity;

evaluation of costs, development of personnel and expansion markets should also be brought

under the jurisdiction of the participating bodies should meet frequently and their decisions

should be timely implemented and strictly adhered to.

Objectives to be achieved should not be unrealistically high, vague or ambiguous but practical

of achievement to all.

From. Coverage, extend level of participation should grow in response to specific

environment, capacity and interest of the parties concerned.

Participation must work as complementary body to help collective bargaining, which creates

conditions of work and also creates legal relations.

Institutional participation should be discouraged but such participation should encouraged

through changes in leadership styles, communication process, inter-personal and inter-group

relation.

There should be a strong trade union, which has learnt the virtue of unit and self-reliance so

that they may be effectively take part in collective bargaining or participation.

Multiple unions in one enterprise should be restricted by legislative measures. Similarly, there

should be no multiplicity and duplicity of bipartite consultative machinery at the plant level.

A peaceful atmosphere should be there wherein there are no strikes and lockouts, for their

presence ruins the employees, harms the interest of the society, and puts the employees to

financial losses.

Authority should be centralized through democratic management process. The participation

should be at the two or at the most three levels.

Programs for training and education should be developed comprehensively. For this purpose,”

labor is to be given education not to the head alone, not to the heart alone, not to the hands

alone, but it is dedicated to the three; to make the workers think, feel and act.” Labor is to be

educated to enable him to feel deeply and emotionally; and to enable him to act in a

47

responsible way. The management at different levels also needs to be trained and oriented to

give it fresh thinking on the issue concerned.

Progressive personal policies should ensure growth of individual workers within industry and

proper policies should exist for selection, promotion, compensation, rewards, and discipline.

Management should be prepared to give all information connected with the working of the

industry and labor should handle that information with full confidence and responsibility.

The workers should become aware of the responsibility. The leaders should initiate this in

them. Similarly, the top management should make the lower echelons to show a new attitude

in the light of new relationship.

The follow up action on the decision of the participating forums should be ensured. The

government may also set up machinery to act as a watch dog for implementing the scheme.

Effective two way communication is a must for the success of the programme. The shorter is

the time for communication, the greater is the probability of correct interpretation.

Forms of WPM

The forms of WPM vary from industry to industry and from country to country. The

important forms are: Labor-Management consultation and co-operation, joint consultation and

models of participation (U.K), Union-Management Co-operation (USA), Codetermination scheme

(West Germany), Joint Management Plan, Joint Decision-Making Models, and Workers control

Models, Self-Management or Auto Management Scheme.

Forms of WPM are:

1. Works committee;

2. Joint Management Councils;

3. Joint Councils;

4. Shop Councils; and

5. Unit Councils.

1) Works Committees

The Industrial Disputes Act, 1949 provides for the setting up of works

committees as a scheme of workers participation in management which consists of representatives

of employers and employees. The Act provides for these bodies in every undertaking employing

100 or more workman. The aim of setting up of these bodies is to promote measures for

48

maintaining harmonious relations in the work place and to sort out differences of opinion in

respect of matters of common interest to employers and employees. The Bombay Industrial

Relations Act, 1946 also provides for these bodies, but under the provisions of this Act they can

be set up only in units which have a recognized union and they are called joint committees. The

workers directly elect their representatives where there is no union.

Functions

These works committees / joint committees are consultative bodies.

Their functions include discussion of conditions of work like lighting, ventilation, temperature,

sanitation etc; amenities like water supply for drinking purposes, provision of canteens, medical

services, safe working conditions, administration of thrift and savings. It shall be the duty of the

works committee to promote measures for securing and preserving amity and good relations

between the employers and workmen and to comment upon matters of their common interest or

concern and Endeavour to reconcile any material difference of opinion in respect of such matters.

Structure

The works committees have, as office bearers, a President, a Vice-President, a secretary

and a Joint Secretary. The President is a nominee of the employer and the Vice-President is the

workers representative. The tenure of these bodies is two years. The total strength of these bodies

should not exceed 20. The employee’s representatives have to be chosen by the employees.

These committees functioned actively in some organizations like Tata Iron Steel Company, Indian

Aluminium Works at Belur, and Hindustan Lever. In all these, the management has evolved joint

committees independently of the statutory requirements.

2) Joint Management Councils (JMC’s)

The second Five Year Plan recommended the setting up of joint

councils of management consisting of representatives of workers and management. The

Government of India deputed a study group (1957) to study the schemes of worker’s participation

management in countries like U.K., France, Belgium and Yugoslavia. The report of the study

group was considered by the Indian Labor Conference (ILC) in its 15th session is 1957 and it made

certain recommendations;

49

That Worker’s Participation in management schemes should be setup in the selected

undertaking on a voluntary basis.

A sub-committee consisting of representatives of employers, workers and government should

be set up for considering the details of workers participation in management schemes. This

committee should select the undertakings where workers participation in management

schemes would be introduced in the first stage on experimental basis.

Objectives

The objectives of Joint Management Councils are as follows:

To increase the association of employers and employee thereby promoting

cordial industrial relations.

To improve the operational efficiency of the workers.

To provide welfare facilities to them.

To educate workers so that they are well equipped to participate in schemes.

To satisfy the psychological needs of worker.

A tripartite sub-committee was set up as per the recommendations of Indian Labor

Conference which laid down certain criteria for selection of enterprises where the JMCs could

be introduced. They are:

The unit must have 500 or more employees;

It should have a fair record of industrial relations;

It should have a well organized trade union;

The management and the workers should agree, to establish JMC’s;

Employers ( in case of private sector ) should be members of the leading employers

organization; and

Trade unions should be affiliated to one of the Central federations.

It was observed by the sub-committee that if the workers mutually agree they can set up

JMC’s even if these conditions are not met.

The sub-committee also made recommendations regarding their composition procedure for

nominating workers representatives, the membership of JMCs etc. The details of these aspects

have to be worked out by the parties themselves. A draft was drawn up regarding the

establishment of JMC’s.

Criteria for selection of units for setting up of JMC’s

50

The sub-committee of the Fifteenth Indian Labor Conference which selected 48 units for

introduction of the scheme of joint management council had laid down the following criteria for

selecting the units:

In private sector, the industries selected were cotton and jute textiles, engineering,

chemicals, tobacco, paper, cement, mines and plantations.

In public sector, industries included railway workshops and yards, posts and

telegraphs, ports, shipyards, transport workshops, mines, printing and electrical undertaking.

The undertaking should have a well-established, strong trade union functioning.

There should be a readiness in the parties between employers and workers union to try out

experiment in a spirit of willing cooperation.

The joint councils are for the whole unit and its membership remains confined to those who

are actually engaged in the organization. The tenure of the joint councils is for two years. The

Chief Executive of the unit becomes its chairman. Workers members of the council nominate

the Vice-chairman. The joint council appoints the secretary. The secretary is responsible for

discharging the functions of the council.

The joint councils will meet once in four months, but the periodicity of the meetings varies

from unit to unit, it may be once in a month, quarter etc. The decisions taken at the joint

council meetings are by the process of consensus and the management shall implement the

decisions with one month. The scheme was implemented by the major units of the central and

state governments. The government enlarged the functions of the councils in 1976. size of the

undertaking should be at least 500 workers.

The employer in a private undertaking should be member of one of the leading employers

organization; and similarly the trade union be related to one of the central federations.

The company should have a fair record of industrial relations.

Functions

The following are the important functions of JMC’s

To be consulted on matters like standing orders, retrenchment, rationalization, closure,

reduction of operations etc.

To receive information, to discuss and offer suggestions.

To shoulder administrative responsibilities like maintaining welfare measures, safety measures

training schemes, working hours, payment of rewards.

51

The tripartite committee originally prepared a list of 50 enterprises and later the target was

raised to 150 to introduce JMC’s. It was found by 1966 that 124 JMC’s were in existence. This

number dropped to in 1978 and a good number of these were not working.

3) Joint Councils

Main Features

In every industrial unit employing 500 or more workers, there shall be a Joint Council for the

whole unit. The main features of the scheme of Joint Council may be as follows:

Only such persons who are actually engaged in the unit shall be members of the Joint Council.

The council shall function or a period of two years.

The Chief Executive of the unit shall be the chairman of the joint council and there shall be a

Vice-Chairman who will be nominated by worker-members of the council.

The Joint Council shall appoint one of the members of the council as its secretary. Necessary

facilities for the efficient discharge of function by the secretary shall be provided with the

premises of the undertaking establishment.

The joint council shall meet, at least, once in a quarter.

Functions of Joint Council

The joint council should deal with matters relating to:

Optimum production, efficiency and fixation of productivity norms of man and machine for

the unit as a whole.

Functions of a shop council which has a bearing on another shop or the unit as a whole.

Matters emanating from shop councils which unresolved.

Matters concerning the unit or the plant as a whole, the respect of production targets; more

specially, task assigned to a shop council at the shop/department levels but relevant to the unit

as a whole will be taken up by the joint council.

The development of skills of workmen and adequate facilities for training.

Awarding of rewards of valuable and creative suggestions received from the workers.

4) Shop councils

The shop council represents each department or a shop in an unit. Each shop council will

consist of an equal number of representatives of employers and workers. The employers

52

representatives will be nominated by the management and must consist of persons from within the

unit concerned. The workers representatives will be from among the workers of the department or

shop concerned. The number of members of each council may be determined by the employers in

consultation with the recognized union. The total number of members, however, may not

generally exceed twelve.

The decisions of the shop council are to be taken on the basis of consensus but not by voting.

Management has to implement the decisions within one month. The tenure of the shop council is

for a period of two years. Members of the shop councils meet at least once in a month.

Management nominates the Chairman at least once in a month. Management nominates the

Chairman of the shop council whereas workers members of the council elect the Vice-Chairman

of the council.

Main Features

The main features of the scheme of participative management through

Shop councils are as follows:

In every industrial unit employing 500 or more workmen, the employer shall constitute a shop

council for each department or shop or one council for more than one department or shop,

considering the number of workmen employed in different departments or shops.

Each council shall consist of an equal number of representatives of employers and workers.

The employers’ representatives shall be nominated by the management and must consist of

persons from the unit concerned.

All the representatives of workmen shall be from amongst the workers actually engaged in the

department of the shop concerned.

The employer shall decide in consultation with the recognized union or the various registered

trade unions or with workers, as the case may be, in the manner best suited to local conditions,

the number of shop councils and departments to be attached to each council of the undertaking

or establishment.

The number of members of each council may be determined by the employer in consultation

with the recognized union, registered unions or workers in the manner best suited to local

conditions obtaining in the unit; the total number of members may not generally exceed 12.

All decisions of a shop council shall be on the basis of consensus and not by process of voting,

provided that either party may refer the unsettled matters to the joint council for consideration.

53

Functions of the Shop Councils

The shop councils should in the interest of increasing production; Productivity and

overall efficiency of the shop department attend to the following matters:

Assist management in achieving monthly/yearly production targets.

Improvement of production, productivity and efficiency including elimination o wastage and

optimum utilization of machine capacity and manpower.

Specially identify areas of low productivity and take necessary corrective steps at shop level to

eliminate relevant contributing factors.

To study absenteeism in the shop/departments and recommend steps to reduce them.

Safety measures.

Assist in maintaining general discipline in the shop/department.

Physical conditions of working, such as lighting, ventilation, noise, dust, etc., and reduction on

fatigue.

Ensure proper flow of adequate two-may communication between the management and the

workers.

6) Unit Councils

Encouraged by the success of the scheme in manufacturing and mining units, a new scheme

of workers’ participation in management in commercial and services organization in the public

sector, having large scale public dealings, was announced on 5 th January, 1977. The scheme

envisaged setting of Unit Councils in units employing at least 100 persons.

The organizations include hotels, restaurants, hospitals, air, sea, railway and road transport

services, ports and docks, ration shops, schools research institutions, provident fund and pension

organizations, municipal and mild distribution services trust organizations, all financial

institutions, banks, insurance companies, post and telegraph offices, Food Corporation, state

electricity boards, central warehousing, state warehousing corporations, state trading corporations,

mines and minerals trading corporation, irrigation systems, tourist organizations, establishment for

public amusement and training organization of the central and state governments.

The main functions of the councils include creation of conditions for achieving optimum

efficiency, better customer service in areas where there is direct and immediate contact between

the workers at the operational level and the consumer higher productivity, the elimination of

54

pilferage and all forms of corruption, and the institutions of rewards to given to those with proven

ability in these areas.

Main Features

The main features of the scheme of workers participation through

unit level councils would be as follows:

A unit level council consisting of the workers and management of the organization/service

may be formed generally in each unit, employing 100 or more workers to discuss day-to-day

problems and find solutions; but wherever necessary a composite council may be formed to

serve more than one unit or a council may be formed department wise to suit the particular

needs of an organization/service.

Every unit council shall consist of an equal number of representatives of the management and

workers. The actual number of members should be determined by the management in

consultation with the recognized union, registered unions or the workers in the manner best

suited to the local conditions obtaining in a unit or an organization, but their total number may

not exceed 12. It would be necessary to nominate suitable and experienced workers from

various departments irrespective of their cadre, affiliation or, status, and not trade union

functionaries who may not be actually working in the unit.

The management’s representatives should be nominated by the management and should

consist of persons from the unit concerned.

The management shall decide in consultation with the recognized union or the registered

unions or the workers as the case may be in the manner best suited to local conditions. The

number of unit councils and the departments has to be attached to each council of the

organization/service.

All decision of a unit council shall be on the basis of consensus and not by a process of voting,

provided that either party may refer the unsettled matters to the Joint Council for

consideration.

Every decision of a unit council shall be implemented by the parties concerned within a

month, unless otherwise stated in the decision itself.

The council shall meet as frequently as is necessary but at least once in a month.

55

The Chairman of the council shall be a nominee of the management. The worker members of

the council shall elect a Vice-Chairman from amongst themselves.

Main Functions

The main functions of the united councils may be

To create conditions for achieving optimum efficiency, better customer service in areas where

there is direct and immediate contact between workers at the operational level and the

consumer, higher productivity and output including elimination of wastage and idle time and

optimum utilization of manpower by joint involvement in improving the work system.

To identify areas of chronically bad, inadequate or inferior service and to take necessary

corrective steps to eliminate the contributing factors to evolve improved methods of operation.

To study absenteeism and recommend steps to reduce it.

To eliminate pilferage and all forms of corruption and to institute a system of rewards for this

purpose.

To suggest improvements in physical conditions of working such as lighting, ventilation, dust,

noise, cleanliness setting up of customers’ service points, etc.

To ensure proper flow of adequate two-way communication between the management and

workers, particularly about matters relating to the services to be rendered, fixation by targets

of output and progress in achieving these targets.

Performance Evaluation of the Scheme of Workers’ Participation in Management

Number of public sector units implemented or initiated action of

implementing the Joint Councils increased from 472 in 1976 to 545 in 1978. A committee on

workers’ participation in management and equity was appointed by the Government in September,

1977 to study all the issues relation to participative management. The committee after its in depth

study suggested the outline of comprehensive scheme and came to conclusions on matters like the

nature, structure, levels of participation and their function which may form part of a scheme of

participative management.

Though the theme was lauded with great fanfare, it has not been

effective in its working owing to the same malady from which the Joint Management Councils

have been suffering, i.e., absence of commitment of both employer and employees. Further

employees feel that this scheme is mostly oriented to maximization of production/productivity,

56

optimum utilization of capacity, better utilization of raw materials etc., without concerning much

about the means of the unit/plant.

Working of Workers’ Participation in Management in India

The highlights of the Indian experience, with regard to workers’

participation in management is that the schemes have although been initiated by the Government.

Taking into account the economic, political and worker/trade union situation in India, the

Government’s initiative for participative management is justified. The Global experience also

stands testimony to such initiative. The trade unions in India who have demanded for

nationalization of industry that culminate in people’s participation in the economic activity have

been conspicuous by their silence with regard of workers participation in industrial activity.

There has been a phenomenal growth in the number of units adopted by JMCs in public

sector (augmented from eight in 1958 to 140 in 1976). JMCs in some of the public sector

undertaking, for example, Bharat Heavy Electronics Ltd have provided an appropriate forum for

effective communication and managements unreservedly furnished.

STEPS IN THE PARTICIPATIVE MANAGEMENT PROCESS

Going by the definition of workers participation in management by ILO the following steps

require further elaboration.

Sharing of information

Consultation

Decision and negotiation

Workers’ representatives in Management or Supervisory Board as Director

Workers self Management

Sharing of information

Information is power and everybody including workers desire to get information about their

organization, history, product / services, economic, status, quality of work and life, contribution to

the society, acceptance of products / services in the market, competitor, if any difficulties, if any,

faced by the organization, organization’s policy towards man-power, social security measures

taken, compliance of legal obligations, financial health and future of the organization etc. While

57

sharing of information by the management makes workers feel secured, motivated and informed,

lack of information makes them suspicious and generates mistrust which, in turn, makes them

demotivated. Managements with autocratic or bureaucratic approach do not provide information

to workers and supervision to a great extent while professionally managed organizations with

open minded approach share information at great length for they find it rewarding in a competitive

market scenario.

Consultation

Management may consult workers broadly in three areas viz. job related area, job

surroundings and safety related area, and HR polity-change area. With a view to improve the

production and productivity services, workers may be consulted regarding job content,

technological aspects, job improvement methods etc. Workers may be consulted on issues such as

work environment, safety at workplace, management of existing welfare facilities and satisfaction

level in the organization. The third area of consultation may be in the matters where the

management is contemplating certain changes in the HR policy which are likely to affect the

employees. Section 3 of the I.D Act 1947 requires that organizations employing 100 or more

workers should have works committee with equal number of representatives from the

Management and the workers or their Trade Unions. General issues relating to safety in the

workplace, welfare provisions, suggestions for better working conditions and productivity

improvements are taken up in the works committee. The works committee, however, can not take

up issues relating to wages, promotions, transfer, individual grievance, matter already covered

under a Bio-partite or Tri-partite agreement between the Management and Trade Union. The

works committee is a recommendatory body and the recommendations are not binding on the

employer works as a feedback forum for management to know as to what workers feel about the

management based on which management can initiate action to improve employees satisfaction

level, if required.

Decision and negotiation

Decision-making process is generally considered as prerogative of management However,

there are certain areas where employees through their Trade Union are associated. Framing of

standing orders requires Tri-partite agreement viz., Management Trade Union and Government.

This joint decision is taken through consultations and negotiations. Collective bargaining is also

58

one of the processes of participative management where management and union agree on issues

such as wage agreement, certain welfare facilities etc. after thorough negotiation.

Workers’ representatives in Management or Supervisory Board as Director.

Workers participation at Board level was first tried in banking industry. The Board of

Directors takes corporate decisions after taking into consideration both micro and macro level

socio-economic-environmental conditions. Matters which are directly connected with workers

often do not find place in the agenda of the Board meeting as they are handled at the enterprise

level. Further, in most of industries there are multiple Trade Unions and in that situation, it

becomes difficult to select someone from a Trade Union leaving behind other Trade Unions.

Moreover, active participation in the decision-making process at the Board level presupposes that

the Board Members are capable and qualified enough to understand, appreciate and give opinion

on the matters. Here also Trade Unions more often than not lack competence to represent

effectively at the Board level. The government even experimented by appointing Mr. Baga Ram

Tulpule a very senior and competent Trade Union leader as the Chief Executive of Durgapur steel

plant. However, the experiment was not very successful. The concept of workers participation at

Board level being very lofty it has its limitations as explained above.

Workers Self Management

Workers self Management was there in Yugoslavia before it was disintegrated into smaller

countries. It was developed in Yugoslavia arising out of the socio-economic and political

conditions prevailing in the country after the Second World War. Under this system people in a

specified area or commune decided to set up such industries if they thought it viable. It was upto

them to arrange fund for investment through banks or other institutions. Two managing bodies

were set up known as Composite Organization of Associated Labor (COAL) and Basic

Organization of Associated Labor (BOAL). Under BOAL / COAL, the workers themselves used

to set up management of the organization. The profit or surplus generated used to be shared by the

people in the organization following certain principles. It was the National policy of the country

enforced through legislation on the matter. The system, however, did not work very effectively as

a result many establishments chose not to set up business in Yugoslavia and opted for neighboring

countries. In India, Kamani Tube was taken over and run by workers when management failed to

run the company profitably and wanted to close it down.

Characteristic Features of Workers Participation in Management

59

Participation increases the employee’s influence in decision-making at different levels of

organization along with the responsibility.

Decision making at different levels will result in different patterns for policy formulation and

execution.

Participation is conducted through the mechanism of the forum and practices, which provide

association for workers representatives.

The goal of participation is to change fundamentally the organizational aspect of production

and transfer the management function entirely to the workers.

NEED FOR THE STUDY

In lieu of economic liberalization and opening up of economy thresholds to MNCs to the

other countries and in India, every organization in India is forced to introspect their policies and

procedure. Out of four factors of production, labor with the changed nomenclature of human

resources is given top priority. Every management restructured their personal policies and

procedures and triggered their attitudes towards employee development.

In this process worker participation in decision making of is higher importance. Hence, present

study is undertaken to review and assess the position of workers participation in management.

PARTICIPATIVE FORUMS IN NIC

Preamble:

In order to bring about a sense of involvement and effective participation amongst the employees

at various levels, towards a coordinated and determined effort for better all-round performance

and improved efficiency, it is imperative to provide institutionalized forums for joint

participation/consultation of the employees in the timely completion of projects and their smooth

functioning. It is desirable to have such forums not only in the areas of construction/production,

productivity/efficiency, target-setting, reduction of cost, elimination of waste, safety, house-

keeping, physical working conditions, etc..but also in the areas of day-to-day concern of the

employees away from their workplace, such as in the areas of recreation and cultural activities,

horticulture, environment etc.

PARTICIPATIVE FORUMS:

60

With the above broad objective of giving a sense of oneness with the organization and the

feeling of involvement, to make employees feel about the various measures in hand for improving

their working and living conditions, to make use of the valuable suggestions put forth by the

employees for the benefit of the organization and the personnel working in it, it is desirable to

have various institutionalized forums.

During the construction stage when even the first unit has not been commissioned, keeping

in view the employees strength and other relevant factors, the following committees may be

constituted to start with:

Safety Committee

Township Advisory Committee

MEETINGS:

The committee will meet once in three months or at such intervals as felt necessary. The

Safety Officer, who would work as the Member Secretary, will do necessary follow-up for the

implementation of conclusions reached at in these meetings.

TOWNSHIP ADVISORY COMMITTEE:

Objective:

The objective of the Township Advisory Committee would be to advise the management

in the administration of matters relating to municipal affairs and township maintenance and to

make suggestions for the provision of township facilities, horticulture and environment, etc..

Constitution:

The constitution of the Safety Committee would be as follows:

Dy. General Manager/Chief Construction Manager Chairman

Manager(HR)- Secretary

One Officer from Finance Department.

One Officer from any other Department.

Senior-most employees in the categories of unskilled and semi skilled workers

taken together.

Senior-most employees in the category of skilled workers.

Senior-most employee in the supervisory category.

61

MEETINGS:

The Committee will meet once in a month or at such frequent intervals as felt necessary

follow-up on the conclusion arrived at in these meetings.

Joint Plant/Project Level Council

Shop/Departmental Level Council

Canteen Management Committee

Employees’ Welfare Committee

Sports Council

House Allotment Committee

SAFETY COMMITTEE:

Objective:

The objective of the Safety Committee would be to create safety consciousness among

employees and suggest ways and measure to the management for creating safe working conditions

and a safe working culture.

Constitution of the Safety Committee would be as follows:

Dy. General Manager-Chairman

Manager/dy. Manager from Erection/Operation

Safety Officer-Secretary

Officer(HR-Welfare)

One Executive from Civil Construction Department

Senior-most employees in the Supervisory category from Mechanical Erection

Senior-most employee in the Supervisory category from Electrical Erection.

Senior-most employee in the Workman category from Mechanical Erection.

Senior-most employee in the Workman category from Electrical Erection.

JOINT PLANT/PROJECT LEVEL COUNCIL (PLC)

The PLC is the apex level participative forum at the project level and is chaired by

the Head of the Project.

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Objective:

It is constituted discuss and resolve NIC level issues- information sharing

on generation & production targets, general health Insurances, welfare & safety

insurances.

Constitution:

The constitution of the PLC would be as follows:

Head of Project/station-Chairman

An Executive from the HR Department-Secretary

The no. of representatives of employees and the Management would be equal and would

vary between 8 & 12 depending on the employee strength.

The Management representatives would be recommended by the Heads of Department and

approved by the Head of Project. They would consist of representatives from the

Supervisory category whose no. would be one or two depending on whether the total no.

of Management representatives is 4 or 6.

Workers representatives would be elected by the workers representatives in the main

branches of the company.

The members once nominated or elected would hold position for 1 year. Any

vacancies arising during the term would be filled in the same manner as mentioned earlier,

But only for the remaining period of the term.

MEETINGS:

The Council will meet once in a quarter or at such frequent intervals as felt necessary. The

Secretary of the council will prepare the minutes of the discussions and will follow-up the

implementation of the conclusions.

Constitution:

The constitution of the SLC would be as follows:

Head of the Department-Chairman

An Executive from the HR Department-Secretary

63

The no. of representatives of employees and the Management would be equal and

would vary between 8 & 12 depending on the employee strength.

The Management representatives would be recommended by the Heads of

Department and approved by the Head of Project. They would consist of

representatives from the supervisory category whose no. would be 1 or 2

depending on whether the total no. of Management representatives is 4 or 6.

Workers representatives would be elected by secret ballot. The members

once nominated or elected would position for one year. Any vacancies

arising during the term would be filled in the same manner as mentioned

earlier, but only for the remaining period of the term.

Terms of reference:

Assist Management in achieving monthly/yearly generation/insurance targets;

Canteen Management Committee

Day-to-day issues of Plant Canteen Management

Employees Welfare Committee

Organizing welfare, recreational and cultural activities

Sports Council

Promoting sports consciousness.

House Allotment Committee

Allotment of house to entitled employees.

Sample design of the questionnaire for the topic WORKER’S PARTICIPATION IN THE

MANAGEMENT

QUESTIONNAIRES ON THE WORKER’S PARTICIPATION IN THE MANAGEMENT

64

S.N

O.

STATEMENTS Strongly

disagree

Disagree Neutra

l

Agree Stron

gly

agree

1. Employees are kept informed of the

affairs of the NIC in participative forums

2. Employees are allowed to express their

opinion and contribute to the

management decisions.

3. Increased use of technology in NIC

necessitated the growing cooperation of

workers in the operations of production.

4. Education campaign regarding the

working conditions regularly conducted

in NIC.

5. Implementation of workers participation

in management has led to the

improvement in the general condition of

work and participation of scheduling of

working hours and holidays.

6. In Companies the day to day problems

are discussed to find the solutions.

7. Company meet and conduct meeting

every month.

8. Congenial working conditions are

provided to motivate the workers for

their increased cooperation of work.

9. Workers participation in the management

has made you feel as an integral and

important part of the organization.

10. Reasonable opportunity is given to

express your ideas.

65

11. The management is showing constructive

attitude towards the employees.

12. Employee status has increased in the

society after the implementation of the

worker’s participation in the

management.

13. Participative management is doing good

in the organization.

14. Improvements and suggestions of the

employees are taken into consideration.

15. Joint council management resulted in

sound industrial relations.

16. Workers participation in management led

to the decreasing industrial disputes.

17. Management allows you to express your

views freely.

18. Employee participation became effective

after the implementation of employee

education campaign

Satisfacto

ry

Good Very

good

Poor

19. Union’s involvement in participative

forums.

20 Attitude of the management towards

joint council Management.

Empolyees are kept informes of the affairs of the NIC

66

No of

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 0 8 16 63 13 100

Interpretation:

0% of the employees Strongly disagree that employees are kept informed of the affairs of the

NIC in participative forums.

8% of the employees disagree that that employees are kept informed of the affairs of the NIC

in participative forums.

16% of the employees neutral that employees are kept informed of the affairs of the NTPC in

participative forums.

63% of the employees agree that employees are kept informed of the affairs of the NTPC in

participative forums.

13% of the employees strongly agree that employees are kept informed of the affairs of the

NTPC in participative forums.

Employees are allowed to express their opinion and contribute to the management

decisions.

No of

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

67

100 6 11 21 54 8 100

INTERPETATION:

8% Employees are strongly disagree that employees are allowed to expressed their opinion

and contribute to the management decisions.

6% employees are Disagree that employees are allowed to expressed their opinion and

contribute to the management decisions.

11% of employees have neutral opinion that employees are allowed to expressed their

opinion and contribute to the management decisions.

21% Employees are Agree that employees are allowed to expressed their opinion and

contribute to the management decisions.

54% Employees are Strongly agree that employees are allowed to expressed their opinion

and contribute to the management decisions.

3.Increased use of technology in NIC necessitated the growing cooperation of workers in the

Insurances.

68

No of

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 0 10 19 52 19 100

INTERPRETATION:

0%Employees are strongly disagree that increased use of tecnology in NIC necessitated

the growing cooperation of workers in the Insurances.

10% Employees are Disagree that increased use of tecnology in NIC necessitated the

growing cooperation of workers in the Insurances.

19%of the employees fell Neutral that increased use of tecnology in NIC necessitated the

growing cooperation of workers in the Insuarnces.

52% Employees are Agree that Increased use of tecnology in NIC necessitated the

growing cooperation of workers in the Insuarnces.

19% Employees are Strongly agree that Increased use of tecnology in NIC necessitated the

growing cooperation of workers in the Insurances.

Education campaign regarding the working conditions regularly conducted in NIC.

NO of Strongly Disagree Neutral Agree Strongly Total

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employees disagree agree

100 1 19 30 41 9 100

INTERPRETATION:

1% Of the employees strongly disagree that education campaign regarding the working

conditions regularly conducted in NTPC.

19% of the employees Disagree that Education campaign regarding the working conditions

regularly conducted in NTPC.

30% of the employees feel neutral that Education campaign regarding the working

conditions regularly conducted in NTPC.

41% of the employees Agree that Education campaign regarding the working conditions

regularly conducted in NTPC.

9% of the employees are Strongly agree that Education campaign regarding the working

conditions regularly conducted in NTPC.

70

Implementation of workers participation in management has led to the improvement in the

general condition of work an participation in scheduling of working hours and holidays.

No of

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 3 14 19 47 17 100

INTERPRETATION:

3% of the employees strongly disagree that Implementation of workers participation in

management has led to the improvement in the general condition of work and participation

o schedule of working hours and holidays.

14% of the employees Disagree that Implementation of workers participation in

management has led to the improvement in the general condition of work and participation

o schedule of working hours and holidays.

19% of the employees neutral that Implementation of workers participation in

management has led to the improvement in the general condition of work and participation

o schedule of working hours and holidays.

47% of the employees Agree that Implementation of workers participation in management

has led to the improvement in the general condition of work and participation o schedule

of working hours and holidays.

71

In shop councils the day-to-day problems are discussed to find solutions.

No. of

employees

Strongly

disagree

Disagree Neutral Agree Strongly

Agree

Total

100 5 12 24 50 9 100

INTERPRETATION

5% of the employees Strongly disagree that in shop councils the day to day

problems are discussed to find solutions.

12% of the employees Disagree that in shop councils the day to day problems are

discussed to find solutions.

24% of the employees feel Neutral about the statement that in shop councils the

day to day problems are discussed to find solutions.

50% of the employees Agree that in shop councils the day to day problems are

discussed to find solutions.

9% of the employees Strongly agree that in shop councils the day to day problems

are discussed to find solutions.

72

Shop councils meet and conduct meetings every month.

No. of

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 2 20 24 50 9 100

INTERPRETATION

2% of the employees Strongly disagree that shop councils meet and conduct meetings

every month.

20% of the employees Disagree that shop councils meet and conduct meetings every

month.

24% of the employees feel neutral about that statement that shop councils meet and

conduct meetings every month.

47% of the employees Agree that shop councils meet and conduct meetings every month.

7% of the employees Strongly Agree that shop councils meet and conduct meetings every

month.

73

Congenial working conditions are provided to motivate the workers for their increased

cooperation of work.

No. of the

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 3 10 26 52 9 100

INTERPRETATION

3% of the employees Strongly disagree that congenial working conditions are

provided to motivate the workers for their increased co-operation of work.

10% of the employees Disagree that congenial working conditions are provided to

motivate the workers for their increased co-operation of work.

26% of the employees have Neutral opinion the fact that the congenial working

conditions are provided to motivate the workers for their increased co-operation of

work.

52% of the employees Agree that congenial working conditions are provided to

motivate the workers for their increased co-operation of work

74

Workers participation in the management has made you feel as an integral and important part of

the organization.

No. of the

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 3 12 22 44 19 100

INTERPRETATION

3% of the employees Strongly disagree that workers participation in the management has

made you feel as an integral and important part of the organization.

12% of the employees Strongly disagree that workers participation in the management has

made you feel as an integral and important part of the organization.

22% of the employees have neutral opinion that the workers participation in the

management has made you feel as an integral and important of the organization.

44% of the employees Agree that workers participation in the management has made you

feel as an integral and important part of the organization.

75

Reasonable opportunity is given to express your ideas.

No. of the

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 2 13 18 56 11 100

INTERPRETATION

2% of the employees Strongly disagree that reasonable opportunity is given to express

your ideas.

13% of the employees Disagree that reasonable opportunity is given to express your ideas.

18% of the employees have Neutral opinion about the reasonable opportunity is given to

express your ideas.

56% of the employees Agree that reasonable opportunity is given to express your ideas.

11% of the employees Strongly agree that reasonable opportunity is given to express your

ideas

76

The management is showing constructive attitude towards the employees.

No. of the

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 2 7 25 53 13 100

INTERPRETATION

2% of the employees Strongly disagree that the management is showing constructive

attitude towards the employees.

7% of the employees Disagree that the management is showing constructive attitude

towards the employees.

25% of the employees have neutral opinion that the management is showing constructive

attitude towards the employees.

53% of the employees Agree that the management is showing constructive attitude

towards the employees.

13% of the employees Strongly agree that the management is showing constructive

attitude towards the employees.

77

Employees status has increased in the society.

No. of the

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 1 11 26 47 14 100

INTERPRETATION

1% of the employees Strongly disagree that the employees status has increased in the

society.

11% of the employees Disagree that the employees status has increased in the society.

26% of the employees feel Neutral that the employees status has increased in the society.

48% of the employees Agree that the employees status has increased in the society.

14% of the employees Strongly agree that the employees status has increased in the

society.

Participative management is doing good in the organization.

78

No. of the

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 2 8 29 46 15 100

INTERPRETATION

2% of the employees Strongly disagree that the participative management is doing good in

the organization.

8% of the employee Disagree that the participative management is doing good in the

organization.

29% of the employees feel Neutral that the participative management is doing good in the

organization.

46% of the employee Agree that the participative management is doing good in the

organization.

15% of the employees Strongly agree that the participative management is doing good in

the organization.

Improvements and suggestions of the employees are taken into consideration.

79

No. of the

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 6 8 17 62 7 100

INTERPRETATION

6% of the employees Strongly disagree that improvements and suggestions of the

employees are taken into consideration.

8% of the employees Disagree that improvements and suggestions of the employees are

taken into consideration.

17% of the employees feel Neutral that improvements and suggestions of the employees

are taken into consideration.

62% of the employees Agree that improvements and suggestions of the employees are

taken into consideration.

7% of the employees Strongly agree that improvements and suggestions of the employees

are taken into consideration.

Joint council management resulted in sound industrial relations.

80

No. of the

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 0 13 26 51 10 100

INTERPRETATION

0% of the employees Strongly disagree that the joint council management resulted in

sound industrial relations.

13% of the employees Disagree that the joint council management resulted in sound

industrial relations.

26% of the employees feel neutral that the joint council management resulted in sound

industrial relations.

51% of the employees Agree that the joint council management resulted in sound

industrial relations.

Workers participation management led to the decrease in the industrial disputes.

81

No of the

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 2 10 25 51 12 100

INTERPRETATION:

2% of the employees Strongly disagree that workers participation in the management led

to the decrease in the industrial disputes.

10% of the employees Disagree that workers participation in the management led to the

decrease in the industrial disputes.

25% of the employees feel Neutral that workers participation in the management led to the

decrease in the industrial disputes.

51% of the employees Agree that workers participation in the management led to the

decrease in the industrial disputes.

12% of the employees Strongly agree that workers participation in the management led to

the decrease in the industrial dispute

Management allows you to express your views freely.

82

No. of

employees

Strongly

disagree

disagree Neutral Agree Strongly

agree

Total

100 8 13 17 51 11 100

INTRPRTATION:

8% of the employees strongly disagree that management allows employees to express their

views freely.

13% of the employees disagree that management allows employees to express their views

freely.

17% of the employees feel neutral that employees are allowed to express their views

freely.

51% of the employees agree that management allows employees to express their views

freely.

83

Employees’ participation becomes effective after the implementation of employee education

campaign.

No of

employees

Strongly

disagree

Disagree Neutral Agree Strongly

agree

Total

100 4 15 30 43 8 100

INTERPRETATION:

4% of the employees Strongly disagree that Employee participation became effective after

the implementation of Employee education campaign.

15% of the employees Disagree that Employee participation became effective after the

implementation of Employee education campaign.

30% of the employees Neutral that Employee participation became effective after the

implementation of Employee education campaign.

43% of the employees Agree that Employee participation became effective after the

implementation of Employee education campaign.

8% of the employees Strongly agree that Employee participation became effective after

the implementation of Employee education campaign.

84

Unions involvement in participative forums.

No. of the

employees

Satisfactory Good Very good Poor Total

100 17 44 28 11 100

Interpretation:

17% of the employees are satisfied with unions involvement in participative

forums

44% of the employees feel good about the unions involvement in participative

forums.

28% of the employees feel good about the unions involvement in participative

forums.

11% of the employees feel that unions involvement in the participative forums is

poor.

Attitude of the management towards joint council management.

85

No. of the

employees

Satisfactory Good Very good Poor Total

100 18 36 34 12 100

INTERPRETATION:

18% of the employees are satisfied with the attitude of the management towards joint

council management.

36% of the employees feel good about the attitude of the management towards joint

council management.

34% of the employees feel very good about the attitude of the management towards joint

council management.

12% of the employees feel that attitude of the management towards joint council

management is poor.

FINDINGS:

86

In NTPC employees are always kept informed of all the changes that take place in the

organization.

In NTPC increased use of technology encouraged the effectiveness of the participative

forums that led to the growing co-operation of the employees at the production.

Implementation of joint council management led to the sound industrial relations.

Nearly 8% of the employees of the organization strongly disagreed that they are

encouraged express their views and ideas freely to the management.

8% of the employees of the organization disagree that their suggestions are not taken into

consideration by the management.

20% of the employees strongly feel that shop council meetings not conducted regularly.

SUGGESTIONS:

Union’s involvement in participative forums have to be increased.

Regular meetings should be conducted by the participative forums.

Annual calendar should be released that should convey the information regarding the

regular meetings that are to be conducted every month.

The minutes and the decisions that are taken at the end of the meetings should have regular

follow-ups.

For every two years the members of the participative forum should be changed so that all

the members get equal opportunity of participation.

87

CONCLUSIONS:

The WORKERS PARTICIPATION IN THE MANAGEMENT enhances the career of the

employee as well as the performance of the management. In NTPC THE WORKERS

PRTICIPATION IN THE MNAGEMENT plays a vibrant role for a sound industrial relations.

The following survey is conducted on the efficiency of the participative forums. At the end of the

survey it was concluded that the participative forums is going good in NTPC. But it also needs a

few additions like releasing of annual calendar, change in the members of the participative forums

at regular intervals like for every two years.

88

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90

91

92

93

94

95

96

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