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INDUSTRIAL RELATION

Directorate of Distance Education

MBA Paper 4.33

ALA APPA UNI!ERSIT"


#ARAI#UDI $ %3& &&3 Ta'i(nadu

Dear Learner, Greeting from Alagappa University We extend a very warm welcome to you as a Student of Distance Education of Alagappa University. We appreciate your interest in enrolling for MBA rogramme. !"e rogramme content is designed to #roaden t"e #usiness acumen$ administrative capacity and s"arpen t"e analytical s%ill of t"e student. &ou are instructed to go t"roug" t"e course materials carefully and t"oroug"ly to "ave #etter understanding of t"e su#'ect. &ou are advised to attend t"e ersonal (ontact rogrammes to "ave #etter clarity on t"e su#'ect. At t"e end of t"e eac" unit$ t"e review )uestions are given to ena#le you to prepare for Examinations. !"e Model *uestion aper is given at t"e end of t"e course material for reference and practice. We wis" you all t"e #est in your endeavour for successful completion of t"e programme. Director Directorate of Distance Education Alagappa University +arai%udi$ !amilnadu.

MBA PAPER 4.33


INDUSTRIAL RELATIONS

SYLLABUS UNIT 1 ,ndustrial -elations. (oncept / Definition / Significance / 0#'ectives / Scope / Approac"es / rinciples of good industrial relations / -ole of State$ Employers and t"e Unions in industrial relation. !rade Unionism and ,ndustrial -elations. 1a#our movement / (oncepts / !rade union movement / Development of trade unionism in ,ndian / 2unctions and pro#lems of trade unions. ,nternational 1a#our Movement / ,nternational (onfederation of 2ree !rade Unions 3,(2!U4 / World 2ederation of !rade Unions 3W2!(4 / ,nternational 1a#our 0rganisations 3,104 / 0rigin$ "istory$ o#'ectives and functions. UNIT 3 ,ndustrial Disputes. Meaning / (auses / 2orms / ,ndustrial relations mac"inery / 5oint consultation / Wor%s committee / (onciliations / (ourt of En)uiry / 6oluntary ar#itration / Ad'udication. Employee Discipline. Definition / (auses of indiscipline / (ode of discipline / Disciplinary procedure / (ode of conduct. Grievance 7andling. Meaning of grievances / (auses of grievances / Guidelines for grievance "andling / Grievances redressal procedures. UNIT 4 Wor%er8s articipation in Management. Meaning / Significance / 2orms / Situations in ,ndia. (ollective Bargaining. Meaning / Significance / rinciples / rocess / !raining met"ods / Evaluation of training and retraining. Wage Administration and ,ndustrial -elations / Wage policy / 0#'ectives / Wage regulation mac"inery / Wage Board. Growt" and development / (omposition and functions / Evaluation of wage #onds.

UNIT 2

UNIT 5

Employee (ommunication. Meaning 9 Significance 9 !ypes / Barriers / Met"ods of overcoming #arriers / rincipal of effective communication 9 Employee Education and !raining / (oncept / features / Aims and o#'ects / (ontents / !eac"ing tec"ni)ues / !raining Sc"emes.

UNIT 6 Employee "ealt"$ safety and security. Meaning / Significance / rogrammes / Employee (ounseling. Meaning / Significance / !ypes and rocess / (onflict management. Meaning / !ypes of conflict episode / management of conflict / *uality circle. Meaning / 0#'ectives / !ec"ni)ues.

REFERNCES :. B"agoliwal !;$ personal Management and ,ndustrial -elations$ Agra u#l. <. Arun Monappa$ ,ndustrial -elations$ !ata Mc Graw 7ill. =. Mic"ael 6 $ 7-M and 7uman -elations$ 7imalaya. >. Mamoria and Mamoria$ Dynamics of ,ndustrial -elations in ,ndia$ 7imalaya. Course Material prepared by Dr. SM. Chocka in!a" rofessor and 7ead De#t. 0f (ommerce 3DDE4 Annamalai University$ Annamalainagar.

C#NTENTS
U;,! / , :. ,ndustrial -elations / ,ntroduction <. 1a#our And !"e (onstitution U;,! / ,, =. !rade Unionism U;,! / ,,, >. ,ndustrial Disputes ?. Grievances 7andling @. Employee Discipline U;,! / ,6 A. Wor%ers8 articipation in Management B. (ollective Bargaining C. Wage Administration and ,ndustrial -elations U;,! / 6 :D. Employee (ommunication ::. Wor%er8s Education and !raining U;,! / 6, :<. ,ndustrial 7ealt" and Social Security :=. Employee Safety rogramme :>. Employee (ounseling :?. (onflict Management

:@. *uality (ircles

UNIT I
1. ". Industrial Relati ns Intr du!ti n La# ur and T$e % nstituti ns

Lesson 1 Industrial Relations Introduction


,ndustrial relations constitute one of t"e most delicate and complex pro#lems of t"e modern industrial society. !"is p"enomenon of a new complex industrial set9up is directly attri#uta#le to t"e emergence of E,ndustrial -evolutionF. !"e pre9industrial revolution period was c"aracteriGed #y a simple process of manufacture$ small scale investment$ local mar%ets and small num#er of persons employed. All t"is led to close proximity #etween t"e manager and t"e managed. Due to personal and direct relations"ip #etween t"e employer and t"e employee it was easier to secure cooperation of t"e latter. Any grievance or misunderstanding on t"e part of eit"er party could #e promptly removed. Also$ t"ere was no interference #y t"e State in t"e economic activities of t"e people. Under suc" a set9up industrial relations were simple$ direct and personal. !"is situation underwent a mar%ed c"ange wit" t"e advent of industrial revolution / siGe of t"e #usiness increased needing investment of enormous financial and "uman resources$ t"ere emerged a new class of professional managers causing divorce #etween owners"ip and management$ and relations #etween t"e employer and t"e employer #ecame entranged and gradually antagonistic. !"is new set9up rendered t"e old p"ilosop"y of industrial relation irrelevant and gave rise to complex$ indirect$ and impersonal industrial relations.

,ndustry today is neit"er viewed as a venture of employers alone nor profit if considered as its sole o#'ective. ,t is considered to #e a venture #ased on purposeful cooperation #etween management and la#our in t"e process of production and maximum social good is regarded as its ultimate end and #ot" management and employees contri#ute in t"eir own way towards its success. Similarly$ la#our today is no more an unorganiGed mass of ignorant wor%s ready to o#ey wit"out resentment or protest t"e ar#itrary and discretionary dictates of management. !"e management "as to deal wit" employees today nto as individuals #ut also as mem#ers of organiGed social groups w"o are very muc" conscious a#out t"eir rig"ts and "ave su#stantial #argaining strengt". 7ence$ t"e o#'ective of evolving and maintaining sound industrial relations is not only to find our ways and means to solve conflicts to resolve differences #ut also to secure t"e cooperation among t"e employees in t"e conduct of industry. But maintaining smoot" industrial relation is not an easy tas%. Almost all t"e industrialiGed countries of "e world fact t"e pro#lem of esta#lis"ing and maintaining

good management wor%er relations"ips in t"eir industries. Eac" country "as soug"t to find our solution$ depending upon its economic$ social and political environment. 7owever$ industrial conflict still arises and t"erefore esta#lis"ment and maintenance of satisfactory industrial relations forms an important plan% in t"e personnel policies of modern organiGation. Meanin! ,n t"e #road sense$ industrial relations cover all suc" relations"ips t"at a #usiness enterprise maintains wit" various sections of t"e society suc" as wor%ers$ state$ customers and pu#lic w"o come into its contact. ,n t"e narrow sense$ it refers to all types of relations"ips #etween employer and employees$ trade union and management$ wor%s and union and #etween wor%ers and wor%ers. ,t also includes all sorts of relations"ips at #ot" formal and informal levels in t"e organiGation. !"e term Eindustrial relations8 "as #een variously defined. 5.!. Dunlop defines industrial relations as Ht"e complex interrelations among managers$ wor%ers and agencies of t"e governmentsF. According to Dale &oder Hindustrial relations is t"e process of management dealing wit" one or more unions wit" a view to negotiate and su#se)uently administer collective #argaining agreement or la#our contractF. ,n indusial relations$ t"erefore$ one see%s to study "ow people get on toget"er at t"eir wor%$ w"at difficulties arise #etween t"em$ "ow t"eir relations including wages and wor%ing conditions etc.$ are regulated. ,ndustrial relations$ t"us$ include #ot" Eindustrial relations8 and Ecollective relations8 as well as t"e role of t"e state in regulating t"ese relations. Suc" a relations"ip is t"erefore complex and multidimensional resting on economic$ social$ psyc"ological$ et"ical$ occupational$ political and legal levels. !"ere are mainly two set of factors t"at determine t"e state of industrial relations / w"et"er good or poor in any country. !"e first set of factors$ descri#ed as Einstitutional factors8 include type of la#our legislation$ policy of state relating to la#our and industry$ extent and stage of development of trade unions and employers8 organiGations and t"e type of social institutions. !"e ot"er set of factors$ descri#ed as Eeconomic factors8 include t"e nature of economic organiGation capitalist$ socialist tec"nology$ t"e sources of demand and supply in t"e la#our mar%et$ t"e nature and composition of la#our force etc. Di$tinction %et&een h'"an re ation$ an( in('$tria re ation$ !"e term E"uman relations8 lays stress upon t"e processes of inter9personal relations"ips among individuals as well as t"e #e"avior of individuals as mem#ers of groups. !"e term Eindustrial relations8 is used widely in industrial organiGations and refers to t"e relations #etween t"e employers and wor%ers in an organiGation$ at any specified time.

!"us$ w"ile pro#lem of "uman relations are personal in c"aracter and are related to t"e #e"avior of individuals w"ere moral and social element predominate$ t"e term Eindustrial relations8 is compre"ensive covering "uman relations and t"e relations #etween t"e employers and wor%ers in an organiGation as well as matters regulated #y law or #y specific collective agreement arrived at #etween trade unions and t"e management. 7owever$ t"e concept of Eindustrial relations8 "as undergone a considera#le c"ange since t"e o#'ective of evolving sound and "ealt"y industrial relations today is not only to find out ways and means to solve conflicts or resolve difference #ut also t secure unreserved cooperation and goodwill to divert t"eir interest and energies toward constructive c"annel. !"e pro#lems of industrial relations are t"erefore$ essentially pro#lems t"at may #e solved effectively only #y developing in conflicting social groups of an industrial underta%ing$ a sense of mutual confidence$ dependence and respect and at t"e same time encouraging t"em to come closer to eac" ot"er for removing misunderstanding if any$ in a peaceful atmosp"ere and fostering industrial pursuits for mutual #enefits. Significance of ,ndustrial -elations Maintenance of "armonious industrials relations is on vital importance for t"e survival and growt" of t"e industrials enterprise. Good industrial relations result in increased efficiency and "ence prosperity$ reduced turnover and ot"er tangi#le #enefits to t"e organiGation. !"e significance of industrial relations can #e summariGed as #elow. :. It establishes industrial democracy: ,ndustrial relations means settling employees pro#lems t"roug" collective #argaining$ mutual cooperation and mutual agreement amongst t"e parties i.e.$ management and employees8 unions. !"is "elps in esta#lis"ing industrial democracy in t"e organiGation w"ic" motivates t"em to contri#ute t"eir #est to t"e growt" and prosperity of t"e organiGation. <. It contributes to economic growth and development: Good industrial relations lead to increased efficiency and "ence "ig"er productivity and income. !"is will result in economic development of t"e economy. =. It improves morale of he work force: Good industrial relations$ #uilt9in mutual cooperation and common agreed approac" motivate one to contri#ute one8s #est$ result in "ig"er productivity and "ence income$ give more 'o# satisfaction and "elp improve t"e morale of t"e wor%ers. >. It ensures optimum use of scare resources: Good and "armonious industrial relations create a sense of #elongingness and group9co"esiveness among wor%ers$ and also a congenial environment resulting in less industrial unrest$ grievances and disputes. !"is will ensure optimum use of resources$ #ot" "uman and materials$ eliminating all types of wastage.

?. It discourages unfair practices on the part of both management and unions: ,ndustrial relations involve setting up a mac"inery to solve pro#lems confronted #y management and employees t"roug" mutual agreement to w"ic" #ot" t"ese parties are #ound. !"is results in #anning of t"e unfair practices #eing used #y employers or trade unions. @. It prompts enactment of sound labour legislation: ,ndustrial relations necessitate passing of certain la#our laws to protect and promote t"e welfare of la#our and safeguard interests of all t"e parties against unfair means or practices. A. It facilitates change: Good industrial relations "elp in improvement of cooperation$ team wor%$ performance and productivity and "ence in ta%ing full advantages of modern inventions$ innovations and ot"er scientific and tec"nological advances. ,t "elps t"e wor% force to ad'ust t"emselves to c"ange easily and )uic%ly Ca'$e$ o) *oor In('$tria Re ation$ er"aps t"e main cause or source of poor industrial relations resulting in inefficiency and la#our unrest is mental laGiness on t"e part of #ot" management and la#our. Management is not sufficiently concerned to ascertain t"e causes of inefficiency and unrest following t"e laisseG9faire policy$ until it is faced wit" stri%es and more serious unrest. Even wit" regard to met"ods of wor%$ management does not #ot"er to devise t"e #est met"od #ut leaves it mainly to t"e su#ordinates to wor% it out for t"emselves. (ontempt on t"e part of t"e employers towards t"e wor%ers is anot"er ma'or cause. 7owever$ t"e following are #riefly t"e causes of poor industrial relations. :. Mental inertia on t"e part of management and la#ourI <. An intolerant attitude of contempt of contempt towards t"e wor%ers on t"e part of management. =. ,nade)uate fixation of wage or wage structureI >. Un"ealt"y wor%ing conditionsI ?. ,ndisciplineI @. 1ac% of "uman relations s%ill on t"e part of supervisors and ot"er managersI A. Desire on t"e part of t"e wor%ers for "ig"er #onus or DA and t"e corresponding desire of t"e employers to give as little as possi#leI B. ,nappropriate introduction of automation wit"out providing t"e rig"t climateI

C.

Unduly "eavy wor%loadsI

:D. ,nade)uate welfare facilitiesI ::. Dispute on s"aring t"e gains of productivityI :<. Unfair la#our practices$ li%e victimiGation and undue dismissalI :=. -etrenc"ment$ dismissals and loc%9outs on t"e part of management and stri%es on t"e part of t"e wor%ersI :>. ,nter9union rivalriesI and :?. General economic and political environment$ suc" as rising prices$ stri%es #y ot"ers$ and general indiscipline "aving t"eir effect on t"e employees8 attitudes. #%+ecti,e$ o) In('$tria Re ation$ :. !o #ring #etter understanding and cooperation #etween employers and wor%ers. <. !o esta#lis" a proper c"annel of communication #etween wor%ers and management. =. !o ensure constructive contri#ution of trade unions. >. !o avoid industrial conflicts and to maintain "armonious relations. ?. !o safeguard t"e interest of wor%ers and t"e management. @. !o wor% in t"e direction of esta#lis"ing and maintaining industrial democracy. A. !o ensure wor%ers8 participation in decision9ma%ing. B. !o increase t"e morale and discipline of wor%ers. C. !o ensure #etter wor%ing conditions$ living conditions and reasona#le wages. :D. !o develop employees to adapt t"emselves for tec"nological$ social and economic c"anges. ::. !o ma%e positive contri#utions for t"e economic development of t"e country. Sco-e !"e scope of industrial relations includes all aspects of relations"ips suc" as #ringing cordial and "ealt"y la#our management relations$ creating industrial peace and developing industrial democracy.

!"e cordial and "ealt"y la#our management relations could #e #roug"t in9 #y safeguarding t"e interest of t"e wor%ersI #y fixing reasona#le wagesI #y providing good wor%ing conditionsI #y providing ot"er social security measuresI #y maintaining "ealt"y trade unionsI #y collective #argaining.

!"e industrial peace could #e attained / #y setting industrial disputes t"roug" mutual understanding and agreementI #y evolving various legal measure and setting up various mac"ineries suc" as Wor%s (ommittee$ Boards of (onciliation$ 1a#our (ourts etc.

!"e industrial democracy could #e ac"ieved / #y allowing wor%ers to ta%e part in managementI and #y recognition of "uman rig"ts.

.--roache$ to In('$tria Re ation$ ,ndustrial conflicts are t"e results of several socio9economic$ psyc"ological and political factors. 6arious lines of t"oug"ts "ave #een expressed and approac"es used to explain "is complex p"enomenon. 0ne o#server "as stated$ HAn economist tries to interpret industrial conflict in terms of impersonal mar%ets forces and laws of supply demand. !o a politician$ industrial conflict is a war of different ideologies / per"aps a class9war. !o a psyc"ologist$ industrial conflict means t"e conflicting interests$ aspirations$ goals$ motives and perceptions of different groups of individuals$ operating wit"in and reacting to a given socio9economic and political environmentF. *$/cho o!ica a--roach According to psyc"ologists$ pro#lems of industrial relations "ave t"eir origin in t"e perceptions of t"e management$ unions and ran% and file wor%ers. !"ese perceptions may #e t"e perceptions of persons$ of situations or of issues involved in t"e conflict. !"e

perceptions of situations and issues differ #ecause t"e same position may appear entirely different to different parties. !"e perceptions of unions and of t"e management of t"e same issues may #e widely different and$ "ence$ clas"es and may arise #etween t"e two parties. 0t"er factors also influence perception and may #ring a#out clas"es. !"e reasons of strained industrial relations #etween t"e employers and t"e employees can #e understood #y studying differences in t"e perception of issues$ situations and persons #etween t"e management groups and la#our groups. !"e organiGational #e"avior of inter9groups of management and wor%ers is of crucial importance in t"e pattern of industrial relations. !"e group9dynamics #etween t"e two conflicting groups in industrial relations tend to s"ape t"e #e"avioural pattern. Socio o!ica a--roach ,ndustry is a social world in miniature. !"e management goals$ wor%ers8 attitudes$ perception of c"ange in industry$ are all$ in turn$ decided #y #road social factors li%e t"e culture of t"e institutions$ customs$ structural c"anges$ status9sym#ols$ rationality$ acceptance or resistance to c"ange$ tolerance etc. ,ndustry is$ t"us insepara#le from t"e society in w"ic" it functions. !"roug" t"e main function of an industry is economic$ its social conse)uences are also important suc" as ur#aniGation$ social mo#ility$ "ousing and transport pro#lem in industrial areas$ disintegration of family structure$ stress and strain$ etc. As industries develop$ a new industrial9cum9social pattern emerges$ w"ic" provides general new relations"ips$ institutions and #e"avioural pattern and new tec"ni)ues of "andling "uman resources. !"ese do influence t"e development of industrial relations.

0'"an re ation$ a--roach 7uman resources are made up of living "uman #eings. !"ey want freedom of speec"$ of t"oug"t of expression$ of movement$ etc. W"en employers treat t"em as inanimate o#'ects$ encroac" on t"eir expectations$ t"roat9cuts$ conflicts and tensions arise. ,n fact ma'or pro#lems in industrial relations arise out of a tension w"ic" is created #ecause of t"e employer8s pressures and wor%ers8 reactions$ protests and resistance to t"ese pressures t"roug" protective mec"anisms in t"e form of wor%ers8 organiGation$ associations and trade unions. !"roug" tension is more direct in wor% placeI gradually it extends to t"e w"ole industry and sometimes affects t"e entire economy of t"e country. !"erefore$ t"e management must realiGe t"at efforts are made to set rig"t t"e situation. Services of specialists in Be"avioural Sciences 3namely$ psyc"ologists$ industrial engineers$ "uman relations expert and personnel managers4 are used to deal wit" suc" related pro#lems. Assistance is

also ta%en from economists$ ant"ropologists$ psyc"iatrists$ pedagogists$ tec. ,n resolving conflicts$ understanding of "uman #e"avior / #ot" individual and groups / is a pre9 re)uisite for t"e employers$ t"e union leaders and t"e government / more so for t"e management. (onflicts cannot #e resolved unless t"e management must learn and %now w"at t"e #asic w"at t"e #asic needs of men are and "ow t"ey can #e motivated to wor% effectively. ,t "as now #een increasingly recogniGed t"at muc" can #e gained #y t"e managers and t"e wor%er$ if t"ey understand and apply t"e tec"ni)ues of "uman relations approac"es to industrial relations. !"e wor%ers are li%ely to attain greater 'o# satisfaction$ develop greater involvement in t"eir wor% and ac"ieve a measure of identification of t"eir o#'ectives wit" t"e o#'ectives of t"e organiGationI t"e manager$ on t"eir part$ would develop greater insig"t and effectiveness in t"eir wor%. *rinci- e o) 1oo( In('$tria Re ation$ !"e willingness and a#ility of management and trade unions to deal wit" t"e pro#lems freely$ independently and wit" responsi#ility. -ecognition of collective #argaining. Desira#ility of associations of wor%ers and managements wit" t"e Government w"ile formulating and implementing policies relating to general economic and social measures affecting industrial relations. 2air redressal of employee grievances #y t"e management roviding satisfactory wor%ing conditions and payment of fair wage. ,ntroducing a suita#le system of employees education and training. Developing proper communication system #etween management and employees. !o ensure #etter wor%ing conditions$ living conditions and reasona#le wages. !o develop employees to adapt t"emselves for tec"nological$ social and economic c"anges. !o ma%e positive contri#utions for t"e economic development of t"e country.

Ro e o) $tate in in('$tria re ation$ ,n recent years t"e State "as played an important role in regulating industrial relations #ut t"e extent of its involvement in t"e process is determined #y t"e level of social and

economic development w"ile t"e mode of intervention gets patterned in conformity wit" t"e political system o#taining in t"e country and t"e social and cultural traditions of its people. !"e degree of State intervention is also determined #y t"e stage of economic develop. 2or example$ in a developing economy li%e ours$ wor%9stoppages to settle claims "ave more serious conse)uences t"an in a developed economy and similarly$ a free mar%et economy may leave t"e parties free to settle t"eir relations t"roug" stri%es and loc%outs #ut in ot"er systems varying degrees of State participation is re)uired for #uilding up sound industrial relations. ,n ,ndia$ t"e role played #y t"e State is an important feature in t"e field of industrial relations and State intervention in t"is area "as assumed a more direct form. !"e State "as enacted procedural as well as su#stantive laws to regulate industrial relations in t"e country. Ro e o) "ana!e"ent in in('$tria re ation$ !"e management "ave a significant role to play in maintaining smoot" industrial relations. 2or a positive improvement in t"eir relations wit" employees and maintaining sound "uman relations in t"e organiGation$ t"e management must treat employees wit" dignity and respect. Employees s"ould #e given Esay8 in t"e affairs of t"e organiGation generally and w"erever possi#le$ in t"e decision9ma%ing process as well. A participative and permissive altitude on t"e part of management tends to give an employee a feeling t"at "e is an important mem#er of t"e organiGation / a feeling t"at encourages a spirit of cooperativeness and dedication to wor%. Management must ma%e a genuine efforts to provide congenial wor% environment. !"ey must ma%e t"e employees feel t"at t"ey are genuinely interested in t"eir personal development. !o t"is end$ ade)uate opportunities for appropriate programmes of :Btraining and development s"ould #e provided. Managements must delegate aut"ority to t"eir employees commensurate wit" responsi#ility. !"ey must evolve well conceived and scientific wage and salary plan so t"at t"e employees may receive 'ust compensation for t"eir efforts. !"ey must devise$ develop and implement a proper incentive plan for personnel at all levels in t"e organiGation. !"ere must #e a well9planned communication system in t"e organiGation to pass on information and to get feed #ac% from t"e employees.

Managements must pay personal attention to t"e pro#lems of t"eir employees irrespective of t"e fact w"et"er t"ey arise out of 'o# environment or t"ey are of personal nature. !"ey must evolve$ esta#lis" and utiliGe appropriate mac"ineries for speedy redressal of employees grievances. Manageemnts must provide an enlig"tened leaders"ip to t"e people in t"e organiGation.

An environment of mutual respect$ confidence$ goodwill and understanding on t"e part of #ot" management and employees in t"e exercise of t"eir rig"ts and performance of t"eir duties s"ould prevail for maintaining good industrial relations Ro e o) tra(e 'nion$ in "aintainin! in('$tria re ation$ !"e trade unions "ave a crucial role to play in maintaining smoot" industrial relations. ,t is true t"at t"e unions "ave to protect and safeguard t"e interests of t"e wor%ers t"roug" collective #argaining. But at t"e same time t"ey "ave e)ual responsi#ility to see t"at t"e organiGation do not suffer on account of t"eir direct actions suc" as stri%es$ even for trivial reasons. !"ey must #e a#le to understand and appreciate t"e pro#lems of managements and must adopt a policy of Egive and ta%e8 w"ile #argaining wit" t"e managements. !rade unions must understand t"at #ot" management and wor%ers depend on eac" ot"er and any sort of pro#lem on eit"er side will do "arm to #ot" sides. Besides pu#lic are also affected$ particularly w"en t"e institutions involved are pu#lic utility organiGations. The a%o'r "ana!e"ent $/ner!/ lanning for "ealt"y ,ndustrial -elations is one of t"e most delicate and complex pro#lems of present day industrial society$ representing diverse Epoints of flexion8 and E#ases of industrial edifice8. 7ow people get on toget"er at t"eir wor%$ w"at difficulties arise #etween t"em$ "ow t"eir relations$ including wages and wor%ing conditions$ are regulated and w"at organiGations are set up for t"e protection of different interests9 t"ese are some of t"e ma'or issues of industrial relations system. !"e !riangle of ,ndustrial -elations System represents multi9pronged relations"ip #etween management$ trade unions and wor%ers. ,ndustrial -elations System8s responsi#ility implies. 3a4 ,nter9vertex -elations"ip 3amongst management$ trade unions and wor%ers inter se4 and$ 3#4 ,nter9societal o#ligations.

Management relations"ip vis9J9vis trade unions is #ased on increasing realiGation t"at trade unionism "as to come to stay as a necessary concomitant of t"e contemporary capitalist t"emI and$ t"at trade unions movement is t"e expression of t"e wor%ers8 collective determination to recover emotional security lost t"roug" ,ndustrial revolution. Management relations"ip vis9J9vis wor%ers revolves round t"e t"emes li%e attitude towards wor%I industrial democracyI urge for greater degree of control over wor% situationI searc" for an environment$ w"ere wor%er can ta%e roots and w"ere "e #elongs toI and$ identification of t"e functions$ w"ere "e sees t"e purpose of "is wor% and feels important in ac"ieving it. Management approac" towards itself presupposes management as a social tas%. Since life is #ased on conflict$ t"e management tas% in t"e long9run is directed towards "armoniGing t"is conflict inside and outside t"e enterprise. !"e art and science of management is "ig"ly sop"isticated wit" t"eories$ concepts and models of management. !rade union relations"ip vis9J9vis management is conditioned #y accepting t"e fact t"at management presents an indissolu#le partners"ip amongst interest$ power and responsi#ility in t"e societal context. !rade Union relations"ip vis9J9vis wor%ers implied t"at it s"ould appreciate wor%ers8 aspirations and expectations t"at trade union is essentially a protective$ friendly society$ meant primarily to manage and "andle t"eir economic$ social and cultural pro#lems. 0ften aspirations of wor%ers are at variance wit" t"ose of leaders in t"e trade union movement. !rade union approac" towards itself is #ased on t"e premise t"at trade unionism is a management system. !rade Unions as organiGations generally viewed t"emselves as an Eend8 rat"er t"an as a Emeans8 centering on Ecause8 and not on Eman8$ w"ic"$ in turn$ creates an attitude of convalescence and t"e cause of unconsciousness. !"ere is often a tendency in trade unionism to promote Emass movement8 instead of an 8organisation8$ and its mem#ers"ip is often #ased on Ecalamity features8 rat"er t"an on Epositive factors8. ,n a c"anging situation li%e ,ndia$ ideological postures are of limited relevance in t"e realm of trade unionism$ w"ic" "as to underta%e responsi#ilities in a dynamic situation$ influenced #y external and internal environment and focusing on.

TRADE UNION

WORKERS

!"e primary purpose 0rganisation Ad'ustment and adaptation Attitudes -epresentation Economic responsi#ility Discipline

!"ere is an imperative need of strengt"ening t"e democracy and freedom wit"in t"e trade unions$ encourage wor%ers8 participation in t"e process of decision9ma%ing and developing new perspectives in t"e personnel pro#lems of t"e trade unionism. Management and trade unions #ot" "ave to #e aware of t"e c"anging value system$ t"e needs of a Enew #reed8 of employee$ t"e ever9increasing generational gap in attitudes towards money$ emp"asis on )uality of life$ pu#lic8s lower frustration tolerance$ c"anging attitudes towards wor% and leisure$ education8s impact on peoples8 self9image$ re'ection of aut"oritarianism and dogmatism$ greater stress on pluralism and individualism$ and searc" of identity$ self9esteem and self9realiGation. !"e ideology #ased on rationalityI moral a#solutes leading to situational et"icsI and$ economic efficiency resulting in social 'usticeI are t"e new #ases and postulates for s"aping t"e future industrial relations system in t"e ,ndian context.

* annin! In('$tria Re ation$2 Ta$k$ .hea( ,n future organiGation systems$ employees would consider t"emselves to #e partners in management and expect t"eir talents to #e utiliGed to t"e fullest. Wit" increased self9 esteem and self9image$ young graduates will resist aut"ority and would c"allenge prevailing management prerogatives. !omorrow8s management control centers$ advanced 0- models will aid future managers in t"e use of resources$ t"ey would need to #alance "umanistic values wit" t"e flow of advancing science and tec"nology. According to 6ictor 2uc"s$ H,n future$ t"e large corporation is li%ely to #e over9s"adowed #y t"e "ospital$ university$ researc" institutes$ government offices and professional organiGations t"at are t"e "allmar%s of a service economy8. 2ollowing t"e concept of Ecorporate citiGens"ip8$ t"e Eresponsi#le corporation8 "as to develop as a social institution$ w"ere people s"are success and failure$ create ideas$ interact and wor% for development and realiGation of t"e individual8s potential as "uman #eing. Since ,ndustrial -elations is a function of t"ree varia#les / management$ trade unions and wor%ers$ a wor%a#le approac" towards planning for "ealt"y la#our9management relations can #e developed #y. Defining t"e accepta#le #oundaries of employerK employee actionI Granting t"e freedom to act wit"in t"ese #oundariesI and Monitoring t"e resulting developments.

2or ac"ieving t"e o#'ectives of improved management / trade union t"e following line fo action is suggested. A realistic attitude of managers towards employees and vice versa for "umaniGing industrial relations. roper organiGation climate and extension of area of ,ndustrial -elations$ ,nstitutionalism of industrial relations and effective forums for interaction #etween management and trade unions at plant$ industry and national levels. A compre"ensive system of rules and discipline$ !"e maintenance of an efficient system of communication$ An o#'ective follow9up pattern for industrial relations system.

-espect for pu#lic opinion and democratic values An integrated industrial relations policy incorporating rational wage policyI trade union and democratic rig"ts$ sanctity of #allot$ collective #argaining and tripartite negotiations.

W"atever$ la#our laws may lay down$ it is t"e approac" of t"e management and union w"ic" matters and unless #ot" are enlig"tened$ industrial "armony is not possi#le. ,n fact #ot" managements and wor%ers need a c"ange in t"eir p"ilosop"y and attitudes towards eac" ot"er. ,n all fairness$ #ot" management and wor%ers s"ould not loo% upon t"emselves as two separate and distinct segments of an organiGation$ #ut on t"e contrary$ realiGe t"at #ot" are partners in an enterprise wor%ing for t"e success of t"e organiGation for t"eir mutual #enefit and interest. ,t is #ecoming increasingly o#vious t"at industrial peace amongst all participants in t"e industrial relations systems re)uires trut" as foundation$ 'ustice as its rule$ love as its driving force$ and li#erty as its atmosp"ere.

RE3IE4 5UESTI#NS2 :. Bring out t"e significance of industrial relations. <. Discuss different approac"es to industrial relations. =. W"at are t"e principles of good industrial relationsL >. Explain t"e role of t"e Government$ Employer and t"e !rade Union in maintaining soot" industrial relations. ?. Suggest suita#le strategies for maintaining cordial industrial relations.

Le$$on 2 La%o'r an( the Con$tit'tion


Con$tit'tiona Fra"e&ork !"e (onstitution of ,ndia "as guaranteed some 2undamental -ig"ts to t"e citiGens and "as also laid down certain Directive rinciples of State olicy for t"e ac"ievement of a social order #ased on 5ustice$ 1i#erty$ E)uality and 2raternity$ !"e (onstitution amply provides for t"e upliftment of la#our #y guaranteeing certain fundamental rig"ts to all. Article :> lays down t"at t"e State s"all not deny to any person e)uality #efore t"e law or t"e e)ual protection of laws. !"ere s"all #e e)uality of opportunity to all citiGens in matters relating to employment or appointment or appointment to any office under t"e State. eople "ave t"e rig"t to form associations or unions. !raffic in "uman #eings and forced la#our and t"e employment of c"ildren in factories or mines or ot"er "aGardous wor% in pro"i#ited. !"e Directive rinciples$ t"oug" not enforcea#le #y any court$ are nevert"eless fundamental in t"e governance of t"e country$ and it s"all #e t"e duty of t"e State to apply t"ose principles in ma%ing laws from time to time. 1a#our is in t"e (oncurrent 1ist on w"ic" #ot" t"e (entre as well as t"e States "ave t"e power to ma%e laws$ Article <?> "as #een enacted to clarify t"e position. ;ormally$ as laid down in clause3,4$ in case of any repugnancy #etween t"e Union and t"e State legislation$ t"e legislation of t"e Union s"all prevail. !o t"is$ t"ere is one exception em#odied under clause3,,4 of Art. =?>$ w"ere$ a law enacted #y a State wit" respect to t"e matter enumerated in t"e (oncurrent 1ist$ reserved for t"e consideration enumerated in t"e (oncurrent 1ist$ reserved for t"e consideration of t"e resident$ "as received "is assent$ suc" law s"all prevail in t"e State$ and provisions of t"at law repugnant to t"e provision of an earlier law made #y t"e arliament or any existing law wit" respect to t"at matter "ave priority over t"e (entral legislation. Articles =C$ >:$ >< and >= "ave a special relevance in t"e field of industrial legislation and ad'udication. ,n fact$ t"ey are t"e su#9stratum of industrial 'urisprudence. Article =C accentuates t"e #asic p"ilosop"y of idealistic socialism w"ic" is ens"rined in t"e ream#le of t"e (onstitution and provides a motivation force to t"e Directive rinciples #y laying down t"at t"e State s"all direct its policy towards e)ual pay for #ot" men and women. Article >: lays down t"at t"e State s"all$ wit"in t"e limits of its economic capacity and development$ ma%e effective provision for securing t"e rig"t to wor%$ to education and to

pu#lic assistance in cases of unemployment$ old age$ sic%ness and disa#lement$ and in ot"er cases of undeserved want. Social security is guaranteed in our (onstitution under Arts. =C$ >: and >=. !"e Employees8 State ,nsurance Act$ :C>B$ is a pioneering piece of legislation in t"e field of social insurance. !"e #enefits provided to t"e employees under t"e sc"eme are. 3:4 sic%ness #enefit and extended sic%ness #enefitI 3<4 maternity #enefitI 3=4 disa#lement #enefitI 3>4 dependants8 #enefitI 3?4 funeral #enefitI and 3@4 medical #enefit. All t"e #enefits are provided in cas" except t"e medial w"ic" is in %ind. !"e administration of t"e sc"eme is entrusted to an autonomous corporation called t"e Employees8 State ,nsurance (orporation. !"e Employees8 rovident 2unds and Miscellaneous rovisions Act$ :C?< and t"e Maternity Benefit Act$ :C@:$ are also social security measures to "elp fulfill t"e o#'ectives of Directive rinciples of our (onstitution. !"e rovident 2und Sc"eme aimed at providing su#stantial security and timely monetary assistance to industrial employees and t"eir families. !"is sc"eme "as provided protection to employees and t"eir dependants in case of old age$ disa#lement$ early deat" of t"e #read9winner and in some ot"er contingencies. A sc"eme of 2amily ension9cum91ife Assurance was introduced wit" a view t providing ling9term recurring financial #enefit to t"e families in t"e event of t"e mem#ers8 premature deat" w"ile in service. !"e Employees8 rovident 2und 0rganiGation$ is in c"arge of t"ree important sc"emes$ viG.$ t"e Employees8 rovident 2unds Sc"eme$ t"e Employees8 2amily ension Sc"eme and t"e Employees8 Deposit9lin%ed ,nsurance Sc"eme. !"e Maternity Benefit Sc"eme is primarily designed to provide full wages and security of employment. !"ey ena#le a female employee to get maternity leave wit" full wages at least for @ wee%s #efore and @ wee%s after confinement. !"e o#'ect of t"e ayment of Gratuity Act$ :CA< is to provide a sc"eme for t"e payment of gratuity to employees employed in factories$ mines$ oil fields$ plantations$ ports$ railways$ s"ops and esta#lis"ments. All employees w"o "ave rendered a minimum of years8 continuous service in t"e a#ove mentioned esta#lis"ments are entitled to gratuity at t"e time of superannuation$ retirement$ resignation$ deat" or if t"ey leave t"eir 'o# due to accident$ disa#lement. Under t"e Act.$ employers are re)uired to pay gratuity at t"e rate of :? days8 wages for every completed year of service su#'ect to a maximum of <D mont"s8 wages.

Article >< en'oins t"e State government to ma%e provision for securing 'ust and "umane conditions of wor% and for maternity relief.

Su#stantial steps "ave #een ta%en to fulfill t"e o#'ect of Art.>< of t"e (onstitution. !"e 2actories Act.$ :C>B$ provides for "ealt"$ safety$ welfare$ employment of young persons and women$ "ours of wor% for adults and c"ildren$ "olidays$ leave wit" wages etc. 1a#our welfare funds "ave #een set up to provide welfare facilities to t"e wor%ers employed in different mines suc" a coal$ mica$ iron ore and limestone. !"e (ontract 1a#our 3-egulation and A#olition4 Act of :CAD$ a piece of social legislation$ provides for t"e a#olition of contract la#our w"erever possi#le and to regulate t"e conditions of contract la#our in esta#lis"ments or employments w"ere t"e a#olition of contract la#our system is not considered feasi#le for t"e time #eing. !"e Act provides for licensing of contractors and registration of esta#lis"ments #y t"e employers employing contract la#our. Article >= ma%es it o#ligatory for t"e State to secure #y suita#le legislation or economic organiGation or in any ot"er manner to all wor%ers$ agricultural$ industrial$ or ot"erwise$ wor%$ a living wage$ condition of wor% ensuring a decent standard of life and full en'oyment of leisure and social and cultural opportunities. !o ensure t"is$ t"e Minimum Wages Act$ :C>B$ was enacted. ,t provides for t"e fixation of minimum rates of wages #y t"e (entral or State governments wit"in a specified period for wor%ers employed in certain sc"eduled employments. !"ese rates vary from State$ area to area and from employments to employment. !"e minimum wage in any event must #e paid irrespective of t"e capacity of t"e industry to pay. 1iving wage is t"e "ig"er level of wage and of t"e industry to pay and naturally$ it would include all amenities w"ic" a citiGen living in a modern civiliGed society is entitled to. 2air wage is somet"ing a#ove t"e minimum wage w"ic" may roug"ly #e said to approximate to t"e need9#ased minimum wage. ,t is a mean #etween t"e living wage and t"e minimum wage. Article >=A ma%es it o#ligatory on t"e State to ta%e steps #y suita#le legislation or ot"erwise to secure t"e participation of wor%ers in t"e management of underta%ings and industrial esta#lis"ments. As o#served #y t"e ;ational (ommission on 1a#our in its report$ Hin accepting t"e Directive rinciples$ t"e country is committed morally and et"ically to see t"at t"e governance of t"e country is carried on wit" a view to implementing t"ese Directive rinciples in course of timeF 3("apter 6,$ p.>B4. Socia 6'$tice ,n industrial ad'udication$ t"e concept of social 'ustice "as #een given wide acceptance. Different views "ave #een expressed #y different aut"orities a#out t"e exact meaning and scope of t"is concept. According to t"e Supreme (ourt$ it was a vague and indeterminate expression and t"at no definition could #e laid down w"ic" would cover all situations. According to 5ustice 7olmes$ social 'ustice is Han inarticulate ma'or premise w"ic" is personal and individual to every court and every 'udgeF.

,n a democratic society$ administration of 'ustice is #ased on t"e -ule of 1aw$ w"ic"$ as conceived #y modern 'urists$ is dynamic and includes wit"in its imports social 'ustice. ,t "as #een given a place of pride in our (onstitution. !"e p"ilosop"y of social 'ustice "as now #ecome an integral part of industrial 'urisprudence. !"e p"ilosop"y of social 'ustice "as now #ecome an integral part of industrial 'urisprudence. !"e concept of social 'ustice is a very important varia#le in t"e function of industrial relations. ,n a welfare State it is necessary to apply t"e general principles of social and economics 'ustice to remove t"e im#alances in t"e political$ economic and social life of t"e people.

Re,ie& 5'e$tion$ :. State t"e relevant provisions of ,ndian (onstitution for la#our welfare. <. State t"e relevant legal enactments relating to la#our.

UNIT II
3. Trade Uni nis&

LESSON 3 Trade Uni nis&


!rade unionism is a worldwide movement and t"e "ig"ly strategic position occupied #y trade unions in modern industrial society "as #een widely recogniGed. ,n most cases$ employees8 associations or trade unions seem to "ave emerged as Eprotest movements8 reac"ing against t"e wor%ing relations"ips and condition created #y industrialiGation. W"en industrialiGation #egins$ organiGation mem#ers "ave to #e generally recruited from t"e ran%s of former agricultural la#our and artisans w"o "ave to adapt t"emselves to t"e c"anged conditions of industrial employment. !"ey "ave to #e provided wit" new types of economic security / wages K salaries$ #enefits and services etc. 0ften t"ey may "ave to learn to live toget"er in newly developing industrial towns"ips and cities and also to adopt t"emselves to new wor%ing conditions and new pattern of wor%9rules imposing discipline and setting pace of wor% to w"ic" t"ey are unfamiliar. !"eir old "a#its and traditions do not suffice to guide t"em in t"eir daily wor%9#e"aviour and in conse)uence t"ey may #e disorganiGed and frustrated. !"us t"e growt" of modern industrial organiGations involving t"e employment of a large num#er of wor%ers K employees in new type of wor%ing conditions and environment ma%es t"em "elpless in #argaining individually for t"eir terms of employment. As o#served #y 2ran% !annen#aum$ H!"e emergence of trade unionism lies in t"e ,ndustrial -evolution w"ic" disrupted t"e older way of life and created a new society forged #y t"e s"op$ t"e factory$ t"e mine and t"e industry.
Meaning of Trade Union, Organized Labour and Labour Movement

!"e term E!rade Union8 "as #een defined in various ways #ecause of wide differences in t"e use of t"is term in different countries. 0f all t"e definitions of a trade union$ t"e classic definition of t"e We##s "as #een most popular. According to t"em a trade union is Ha continuous association of wage9earners for t"e purpose of maintaining or improving t"e condition of t"eir wor%ing livesF. Since t"is definition does not cover all t"e extensions of trade union activities in modern times$ a trade union wit" some modification may #e redefined as Ha continuous association of wage9earners or salaried employees for maintaining t"e conditions of t"eir wor%ing lives and ensuring t"em a #etter and "ealt"ier status in industry as well as in t"e societyF. !"e term E0rganiGed 1a#our8 is used to distinguis" wor%ersK employees w"o are mem#ers of trade unions or employee association from t"ose w"o are unorganiGed$ i.e. w"o are not mem#ers of any union.

!"e term E1a#our Movement8 is generally applied to all t"e various types of long9term association of wor%ers K employees t"at t"e formed in industrialiGed or industrialiGing economies. According to Encyclopedia of Social Sciences$ la#our movement is conceived as Hall of t"e organiGed activity of wage9earners to #etter t"eir own condition s eit"er immediately or in t"e more or less distant futureF. According to G.D.7. code$ H1a#our movement implies$ in some degree$ a community of outloo%. !"us t"e la#our movement in a country emerges from a common need to serve a common interest. ,t see%s to develop amongst employees a spirit of com#ination$ class9consciousness and solidarity of interest and generates a consciousness for self9respect and creates organiGations for t"eir self protection$ safeguarding of t"eir common interest and #etterment of t"eir economic and social conditions. A trade union is t"us an essential #asis of la#our movement. !"e la#our movement wit"out trade unions cannot exist. !rade unions are t"e principal institutions in w"ic" t"e employees learn t"e lesson of self9 reliance and solidarity.
Difference between Labour Movement and Trade Union Movement

!"ere is lot of confusion on t"e use of t"e terms Ela#our movement8 and Etrade union movement8. 0ften t"e two are used interc"angea#ly. 7owever$ t"ere is a slig"t distinction #etween t"e two. !"e Ela#our movement8 is Efor t"e wor%er8I w"ereas t"e Etrade union movement8 is E#y t"e wor%ers8. !"is distinction needs to #e noticed all t"e more #ecause till t"e wor%ers organiGed t"emselves into trade unions$ efforts were made mainly #y t"e social reformers to improve t"e wor%ing and living conditions of la#our. !"ese efforts s"ould #e ta%en as forming a part of t"e la#our movement and not t"at of t"e trade union movement. !"e la#our movement t"us conveys a "ig"er degree of consciousness amongst wor%ers t"an conveyed #y mere trade union movement.
The Trade Union Movement in India

!"e trade union movement8s origin in a sense can #e traced #ac% to very early date to t"e time w"en villages "ad panc"ayats and guilds for settling disputes #etween t"e masters and t"eir mem#ers. !"e panc"ayats prescri#ed t"e code of conduct w"ic" was rigidly o#served #y its mem#ers. ,ts non9o#servance resulted in expulsion from t"e community. !rade unions$ as understood today$ "owever originated in t"e first )uarter of t"e present century$ alt"oug" t"e groundwor% was laid during t"e last )uarter of t"e :C t" century. ,n Mum#ai$ as early as in :CA?$ a movement was started #y reformers under t"e leaders"ip of Sora#'i S"apur'u. !"ey protested against t"e appealing conditions of t"e factory wor%ers and appealed for introduction of ade)uate legislation to prevent t"em. !"e credit of laying t"e foundation of t"e organiGed la#our movement in ,ndia is at time accorded to Mr. ;.M. 1o%"ande$ a factory wor%er "imself. An agitation was organiGed #y "im a :CBB> in Mum#ai. !"is resulted in certain amenities #eing extended to t"e mill wor%ers w"ic" led to t"e organiGation of t"e Mum#ai Mil"ands Association.

Actually a real organiGed la#our movement in ,ndia started at e" end of t"e 2irst World War. -ising prices$ wit"out a corresponding increase in wages$ despite t"e employers ma%ing "uge profits$ led to a new awa%ening. Many trade unions were formed t"roug"out ,ndia. !"ere were a num#er of stri%es during :C:C to :C<<. !o t"is was added t"e influence of t"e -ussian -evolution$ t"e esta#lis"ment of t"e ,10 3,nternational 1a#our 0rganisation4 and t"e All9,ndia !rade Union (ongress. !"ie> speeded up t"e pace of t"e trade union movement. 2ollowing t"e Second World War$ t"ere was a spiraling of prices. !"e wor%ers once again #ecame restive. !"is furt"er indirectly strengt"ened t"e movement in ,ndia. !"e la#our world in ,ndia is dominated mainly #y four central organiGation of la#our. !"ese unions are$ in fact$ federations of affiliated union / units w"ic" function on regional$ local and craft #ases. !"ese are. :. All-India Trade Union Congress AITUC!: An important event in t"e "istory of trade union movement in ,ndia was t"e organiGation of t"e All9,ndia !rade Union (ongress in :C<D. Mr. ;e"ru too% a prominent part in t"e organiGation of t"is (ongress. ,t followed t"e pattern of t"e trade union s in t"e United +ingdom. !"e effort toward unified action in t"e matter of la#our was$ "owever$ s"ort9lived and soon it came under t"e domination of t"e (ommunists and -adicals. !"is lienated any prominent people w"o did not su#scri#e to t"e views and ideology of t"e communists. At present$ it is t"e second largest union of wor%ers and is still controlled #y (ommunists and fellow9travellers. <. Indian "ational Trade Union Congress I"TUC! . ,n May$ t"e ,ndian ;ational !rade Union (ongress was organiGed #y t"e (ongress party on its la#our front. !"is was formed wit" t"e "elp of t"e 7industan MaGdoor Sewa% Sang" w"ic" consisted of t"ose w"o #elieved in Gand"ian met"ods and "ad left t"e A,!U( in :C=A under of leaders"ip of Mr. M.;. -oy. !"e ,;!U( received t"e #lessings of t"e top congress leaders at t"e (entre li%e Mr. ;e"ru and Sardar atel. !"e prominent leaders of A!1A and 7MSS were elected office9#earers of ,;!U(. 0ne of t"e important points of t"e constitution of ,ndian ;ational !rade Union (ongress is t"at every affiliated union "as to agree to su#mit to ar#itration every individual dispute in w"ic" settlement is not reac"ed t"oroug" negotiations. !"ere must #e no stri%es till ot"er means of settlement are ex"austed. ,n :C>B$ t"e Government of ,ndia declared t"at ,;!U($ and not A,!U($ was t"e most representative organiGation of la#our in t"e country entitled to represent ,ndian la#our in ,.1.0. =. #ind Ma$door %angha #M%! . !"e socialists in t"e (ongress disapproved not only t"e (ommunist run A,!U( #ut also t"e (ongress9sponsored ,;!U($ particularly #ecause it advocated compulsory ar#itration as a met"od of resolving

industrial disputes. 2or sometime t"e activities of socialist leaders were coordinated #y t"e 7ind MaGdoor anc"ayat. Su#se)uently w"en t"ey left t"e (ongress$ t"ey met in +ol%atta in Decem#er$ :C>B and a new federation #y t"e 7ind MaGdoor domination #y employers$ Government and political parties. >. United Trade Union Congress UTUC!. !"e dissidents from t"e Socialist 1eaders8 (ongerence "eld at +ol%atta in Decem#er$ :C>B proceeded to esta#lis" yet anot"er federation of trade unions in April9May :C>C under t"e name of United !rade Union (ongress. !"e U!US is more radical t"an 7MS #ut less revolutionary in its o#'ectives and policies t"an A,!U(.
Need for Trade Union

0ne of t"e main reasons of wor%ers 'oining a trade union #een t"eir #elief to get wages increased and maintained at a reasona#le standard t"roug" collective action and t"eir realiGation t"at individual #argaining was utterly useless for t"is purpose. Since t"e employee$ as an individual$ feels specially wea%$ "e prefers to 'oin an organiGation t"at my afford "im an opportunity to 'oin ot"ers for t"e ac"ievement of t"ose o#'ectives t"at "e considers as socially desira#le. !"e employees may 'oin t"e unions to ensure a 'ust and fair dealing #y management. !"roug" collective strengt"$ t"ey restrain t"e management from ta%ing any suc" action w"ic" may #e irrational$ illogical$ discriminatory or contrary to t"eir general interests. Anot"er reason of employees 'oining some union may #e t"e #roader realiGation on t"eir part t"at unions fulfill t"e important need for ade)uate mac"inery for proper maintenance of la#our9management relations. Employees may 'oin t"e unions #ecause of t"eir #elief t"at it is an effective way to secure ade)uate protection form various types of "aGards and income insecurity suc" as accident in'ury$ illness$ unemployment etc. !"e employees may 'oin t"e unions #ecause of t"eir feeling t"at t"is would ena#le t"em to communicate t"eir views$ ideas$ feelings and frustrations to t"e management effectively. ,ndividuals may 'oin t"e unions in t"e "ope of finding a 'o# t"roug" t"eir influence in t"e company management.

Functions of Trade Unions

2unctions relating to mem#ers 2unctions relating to organiGation 2unctions relating to t"e unionI and 2unctions relating to t"e society.

Functions relating to trade union members

:. !o safeguard wor%ers against all sorts of exploitation #y t"e employers$ #y union leaders and #y political parties. <. !o protect wor%ers from t"e atrocities and unfair practices of t"e management. =. !o ensure "ealt"y$ safe and conducive wor%ing conditions$ and ade)uate conditions of wor%. >. !o exert pressure for en"ancement of rewards associated wit" t"e wor% only after ma%ing a realistic assessment of its practical implications. ?. !o ensure a desira#le standard to living #y providing various types of social service / "ealt"$ "ousing$ educational$ recreational$ cooperative$ etc. and #y widening and consolidating t"e social security measures. @. !o guarantee a fair and s)uare deal and social security measures. A. !o remove t"e dissatisfaction and redress t"e grievances and complaints of wor%ers. B. !o encourage wor%er8s participation in t"e management of industrial organiGation and trade union$ and to foster la#our9management cooperation. C. !o ma%e t"e wor%ers conscious of t"eir rig"ts and duties. :D. !o impress upon wor%s t"e need to exercise restraint in t"e use of rig"ts and to enforce t"em after realistically ascertaining t"eir practical implications. ::. !o stress t"e significance of settling disputes t"roug" negotiation$ 'oint consultation and voluntary ar#itration. :<. !"e raise t"e status of trade union mem#ers in t"e industrial organiGation and in t"e society at large.
Functions relating to industrial organization

:. !o "ig"lig"t industrial organiGation as a 'oint enterprise #etween wor%ers and management and to promote identity of interests. <. !o increase production )uantitatively and )ualitatively$ #y laying down t"e norms or production and ensuring t"eir ade)uate o#servance. =. !o "elp in t"e maintenance of discipline. >. !o create opportunities for wor%er8s participation in management and to strengt"en la#our9management cooperation. ?. !o "elp in t"e removal of dissatisfaction and redressal of grievances and complaints. @. !o promote cordial and amica#le relations #etween t"e wor%ers and management #y settling disputes t"roug" negotiation$ 'oint consultation and voluntary ar#itration$ and #y avoiding litigation. A. !o create favoura#le opinion of t"e management towards trade unions and improve t"eir status in industrial organiGation. B. !o exert pressure on t"e employer to enforce legislative provision #eneficial to t"e wor%ers$ to s"are t"e profits e)uita#ly$ and to %eep away from various types of unfair la#our practices. C. !o facilitate communication wit" t"e management. :D. !o impress upon t"e management t"e need to adopt reformative and not punitive$ approac" towards wor%ers8 faults.
Functions relating to trade unions organization

:. !o formulate policies and plans consistent wit" t"ose of t"e industrial organiGation and society at large. <. !o improve financial position #y fixing "ig"er su#scription$ #y realiGing t"e union dues and #y organiGing special fund9raising campaigns. =. !o preserve and strengt"en trade union democracy. >. !o train mem#ers to assume leaders"ip position. ?. !o improve t"e networ% of communication #etween trade union and its mem#ers. @. !o cur# inter9union rivalry and t"ere#y "elp in t"e creating of unified trade union movement.

A. !o resolve t"e pro#lem of factionalism and promote unity and solidarity wit"in t"e union. B. !o eradicate casteism$ regionalism and linguism wit"in t"e trade union movement. C. !o %eep away from unfair la#our practices. :D. !o save t"e union organiGation from t"e exploitation #y vested interests /personal and political. ::. !o continuously review t"e relevance of union o#'ectives in t"e context of social c"ange$ and to c"ange t"em accordingly. :<. !o prepare and maintain t"e necessary records. :=. !o manage t"e trade union organiGation on scientific lines. :>. !o pu#licise t"e trade union o#'ectives and functions$ to %now people8s reaction towards t"em$ and to ma%e necessary modifications.
Functions relating to societ

:. !o render all sorts of constructive cooperation in t"e formulation and implementation of plans and policies relating to national development. <. !o actively participate in t"e development of programmes of national development$ e.g.$ family planning$ afforestation$ national integration$ etc. =. !o launc" special campaigns against t"e social evils of corporation$ nepotism$ communalism$ casteism$ regionalism$ linguism$ price rise$ "oarding$ #lac% mar%eting$ smuggling$ sex$ ine)uality$ dowry$ untouc"a#ility$ illiteracy$ dirt and disease. >. !o create pu#lic opinion favoura#le to government8s policies and plans$ and to mo#iliGe people8s participation for t"eir effective implementation. ?. !o create pu#lic opinion favoura#le to trade unions and t"ere#y to raise t"eir status. @. !o exert pressure$ after realistically ascertaining its practical implications$ on t"e government to enact legislation conducive to t"e development of trade unions and t"eir mem#ers.
!roblems of Trade Union

!"e following are some of t"e most important pro#lems of t"e trade unions in ,ndia.

:. Multiplicity of !rade Unions and ,nter9union -ivalry <. Small SiGe of Unions =. 2inancial Wea%ness >. 1eaders"ip ,ssues ?. @. oliticalisation of t"e Unions ro#lems of -ecognition of !rade Unions

Multi"licit of trade unions

Multiple rival unionism is one of t"e great wea%nesses of t"e ,ndian trade union movement. HMultiple unions are mainly t"e result of political outsiders wanting to esta#lis" unions of t"eir own$ wit" a view to increasing t"eir political influenceF. !"e existence of different conflicting or rival organisatoins$ wit" divergent political views$ is greatly responsi#le for inade)uate and un"ealt"y growt" of t"e movement. Wit"in a single organisation one comes across a num#er of groups comprising or Einsiders and outsiders8$ Enew9comers8$ and Eold9timers8$ moderates8 and radicals8$ and E"ig"8 and low caste8 people. !"is develops small unions. ,nter9union and intra9union rivalry undermines t"e strengt" and solidarity of t"e wor%ers in many ways. Multiplicity of unions lead to inter9union rivalries$ w"ic" ultimately cuts at t"e very root of unionism$ wea%ens t"e power of collective #argaining$ and reduces t"e effectiveness of wor%ers in securing t"eir legitimate rig"ts. !"erefore$ t"ere s"ould #e H0ne union in one ,ndustryF. Inter-union rivalry Anot"er vexing pro#lem is t"at of intra9union rivalry. !rade rivalry is acute and pervades t"e entire industrial scene in ,ndia. ractically every important industry$ t"ere exists parallel and competing unions$ e.g. on t"e ,ndian -ailways$ t"ere are two parallel 2ederations / t"e ,ndian -ailway Men8s 2ederation and ,ndian ;ational 2ederation of -ailway9men.
#mall #ize of unions

!"e small siGe of unions is due to various factors$ namely. !"e fact t"at #y seven wor%ers may form a union under t"e !rade Union Act of :C<@$ and get it registered and a large num#er of small unions "ave grown.

!"e structure of t"e trade union organiGation in t"e country / w"ic" is in most cases t"e factory or t"e unit of employmentI so w"enever employees in a particular factory or mine are organiGed$ a new union is formed. Unionism in ,ndia started wit" t"e #ig employers and gradually spread to smaller employers. !"is process is still continuing and "as pulled down t"e average mem#ers"ip. !"oug" t"e num#er of unions and union mem#ers"ip are increasing average mem#ers"ip is declining. -ivalry among t"e leaders and t"e (entral 0rganisation "as resulted in multiplicity of unions.

!"e small siGe of unions create pro#lems suc" as. 1ac% of funds to "elp its mem#ers. 1ac% of a#ility among t"e leaders and mem#ers. 1ow #argaining power. -ivalry #etween t"e unions 1ac% of unity among wor%ers.

Financial wea$ness

!"e financial wea%ness of t"e union may #e attri#uted to t"e small siGe of union and poor a#ility of its mem#ers to contri#ute. !"e ot"er reasons are low su#scriptions and irregular payments of su#scriptions #y t"e mem#ers.
Leadershi" issues

Anot"er dis)uieting feature of t"e trade unions is t"e Eoutside8 leaders"ip$ i.e. leaders"ip of trade unions #y persons w"o are professional politicians and lawyers and w"o "ave no "istory of p"ysical wor% in t"e industry. !"ere are several reasons for t"is p"enomenon$ namely. !"e ran% and t"e file are largely illiterate as suc" t"ey cannot effectively communicate wit" t"e managementI !"e union8s lac% of formal power tends to put a premium on t"e d"arismatic type of t"e leader$ usually a politician$ w"o can play t"e role of t"e defender of t"e wor%ers against t"e managementI

2or ensuring a measure of Ee)uation of power8 in collective #argaining w"ere t"e wor%ers are generally uneducated and "ave a low status. 2or avoiding victimisation of wor%er9office9#earers of t"e trade unionsI and 2or lac% of financial resources to appoint w"ole time office9#earers.

!"ese political leaders are inevita#ly concerned wit" HmaximiGing t"eir individual standing as political leaders rat"er t"an wit"$ maximiGing t"e welfare of t"eir mem#ersF. 2urt"er$ in #igger unions$ direct contact wit" t"e ran% and file mem#ers"ip and t"e top leaders is missing #ecause of t"eir "old on a num#er of trade unions in varied fieldsI t"ey fail to pay ade)uate attention to any one union. Again$ often t"ese union leaders are not ade)uately aware of t"e actual needs and pressing pro#lems of t"e mem#ers. !"ey$ t"erefore cannot put fort" t"e case of t"e union effectively. 0utside leaders"ip of t"e unions leads to political unionism 3eac" union "aving an allegiance to a different political party4$ w"ic" in turn$ leads to multiplicity of unions$ leading to intra9union rivalry$ w"ic" cause low mem#ers"ip leading to unsound finances and in turn$ lac% of welfare and ot"er constructive activities w"ic" may infuse strengt" into unions and to conduct collective #argaining effectively t"e unions depend on outside leaders"ip$ and t"e vicious circle t"us goes on and on. 0ver and again it "as #een realiGed t"at Ha reorientation of policy is desira#le #y a switc"over to wor%ing class leaders"ipF. !"e ;ational (ommmission on 1a#our gave a good deal of t"oug" to t"e issue w"et"er outside leaders"ip s"oul #e retained. ,t felt t"at$ Ht"ere s"ould #e no #an on non9employees "olding positions in t"e executive #ody of t"e unions as t"at would #e a very drastic stepF. !"e (ommission also refers to t"e ,10 convention 3;o. BA4 concerning Hfreedom of associationF and protection of t"e rig"t to organiGe$ and t"e wor%ers8 organisation s"all "ave t"e rig"t to elect t"eir representative in full freedom. !"e commission8s own estimate was t"at outsiders in t"e unions executive #odies would #e a#out :DM$ muc" less t"an t"e num#er legally permitted. ,t ma%es t"e following recommendations to deal wit" t"e pro#lem of outside leaders"ip. Ex9employees of an industrial enterprise s"ould not #e treated as outsidersI ,ntensification of wor%er8s educationI enalties for victimiGation and similar unfair la#our practices suc" as would discourage t"e growt" of internal leaders"ipI

,ntensification of efforts #y trade union organiGers to train wor%ers in union organisation. 1imiting t"e proportion of outsiders in t"e union executeI Esta#lis"ing a convention t"at no union office9#earer will concurrently "old an office in a political party.

7ence$ leaders"ip s"ould #e promoted from wit"in t"e ran% and file and given a more responsi#le role. ,nitiative s"ould come from t"e wor%ers t"emselves t"roug" t"e launc"ing of a vigorous programme for Wor%ers8 Education. !"is will ena#le t"em to participate in t"e decision9ma%ing and managing t"e union affairs effectively.
!oliticalisation of the unions

0n of t"e #iggest pro#lems of t"e country8s trade union movement faces is t"e influence of t"e political parties. i.e.$ t"e most distressing feature is its political c"aracter. 7arold (rouc" "as o#served$ HEven to t"e most casual o#server of t"e ,ndian trade union scene$ it must #e clear t"at muc" of t"e #e"aviour of ,ndian unions$ w"et"er it #e militant or passive #e"aviour can #e explained in political terms. Dr. -aman8s o#servations are. H!rade union multiplicity in ,ndia is directly tracea#le to t"e domination and control of t"e trade union movement #y rival political partiesN. !"e clay of unionism is possi#ly an effervescent industrial la#ourers$ #ut t"e sculptors c"iseling it into s"ape "ave certainly #een mem#ers of political parties. ,n a recent study$ Dr. andey "ad reac"ed t"e conclusion. H!"e unions are closely aligned wit" political parties$ and political leaders continue to dominate t"e unions even nowN !"e supreme conse)uence of political involvement of unions in ,ndia in general$ formed to safeguard and promote t"e social and economic interests of wor%ers$ "ave tended to #ecome tools of party politicsF. ,t s"ould #e noted t"at decisions in t"e trade union fields are ta%en #y t"e respective political parties to w"ic" t"e unions are attac"ed and$ t"erefore$ wit" t"e c"anging political situation$ t"e decisions also c"ange. Wit" t"e split in t"e political ideology$ t"ere develops factional split in t"e same trade union professing t"e same political ideology. !"e divisions and su#9divisions$ t"us made$ "ave affected adversely t"e trade union movement. ,t "as #ecome fragmented and dis'ointed. Eac" section pulls itself in different directionsI wit" t"e result t"at Hinstead of #ecoming a unity and mig"ty torrential river$ t"e movement is su#9divided into numerous rivuletsF. Dr. -aman a"s very aptly conclude t"at. H!"e use of political met"ods #y trade unions may #e to t"eir advantage$ #ut t"e union cause is endangered w"en unions allow t"emselves to #ecome pawns in political fig"ts. olitical unionism "as prevented t"e

development of a movement or organisation t"at could #e termed t"e wor%ers8 own and turned t"e soil upside down to suc" a degree t"at it "as #ecome impossi#le for a genuine la#our9inspired$ la#our9oriented$ wor%er9led trade union movement to ta%e rootF.
!roblems of recognition of trade unions

!"is is one of t"e #asic issues in our industrial relation system #ecause employers are under no o#ligation to give recognition to any union. ,n t"e initial stages$ t"e attitudes of t"e employers towards t"e trade unions "ave #een very "ostile. !"e employers many a times "ave refused recognition to trade unions eit"er on t"e #asis t"at unions consist of only a minority of employeesI or t"at two or more unions existed.
%ecommendations of National &ommission on Labour for #trengthening Trade Unions

!"e ;ational (ommission on 1a#our "as made a large num#er of recommendations on different aspects of trade unions$ as given #elowI
'nlargement of functions

!"e ;.(.1. "as stated t"at t"e Hunions must pay greater attention to t"e #asic needs of its mem#ers w"ic" are. to secure for wor%ers fair wagesI to safeguard security of tenure and improved conditions of serviceI to enlarge opportunities for promotion and trainingI to improve wor%ing and living conditionsI to provide for educational$ cultural and recreational facilitiesI to cooperate in and facilitate tec"nological advance #y #roadening t"e understanding of wor%ers on its underlying issuesI to promote identity of interests of t"e wor%ers wit" t"eir industryI to offer responsi#le cooperation in improving levels of production and productivity$ discipline$ and "ig" standard of )ualityI and generally to promote individual and collective welfareF.

,n addition$ Hunions s"ould also underta%e social responsi#ilities suc" as promotion of national integration$

influencing t"e socio9economic policies of t"e community t"roug" active participation in t"e formulations of t"ese policies$ and instilling in t"eir mem#ers a sense of responsi#ility towards industry and communityF.

!"e main o#'ective s"ould #e to draw unions as closely as possi#le into t"e entire development process.
Leadershi"

-egarding leaders"ip t"e ;.(.1. "as recommended t"at H3i4 !"ere s"ould #e not #an on non9employees "olding t"e position in t"e executive of t"e unionsI 3ii4 steps s"ould ta%en in to promote international leaders"ip and give it more responsi#le role 3iii4 internal leaders"ip s"ould #e %ept outside t"e pale of victimiGationI 3iv4 permissi#le limit of outsiders in t"e executive of t"e unions s"ould #e reduced to <?MI and 3v4 ex9employees s"ould not #e treated as outsidersF.
Union rivalries

,n regard to union rivalries$ t"e (ommission was of t"e opinion t"at its recommendation regarding recognition of unions$ #uilding up of internal leaders"ip$ s"ift to collective #argaining and institution of an independent aut"ority for union recognition would reduce t"em. ,ntra9union rivalries s"ould #e left to t"e central organisation concerned to settle and if it is una#le to resolve t"e dispute t"e 1a#our (ourt s"ould #e set up at t"e re)uest of eit"er group or on a motion #y t"e government.
%egistration

!"e (ommission "as recommended t"at registration s"ould #e cancelled if. 3a4 its mem#ers"ip fell #elow t"e minimum prescri#ed for registrationI 3#4 t"e union failed to su#mit its annualI 3c4 it su#mitted defective returns and defects were not rectified wit"in t"e prescri#ed timeI and 3d4 an application for re9registration s"ould not #e entertained wit"in six mont"s of t"e date of cancellation of registration. I"-ro,e"ent o) )inancia con(ition !o improve t"e financial conditions of t"e unions$ t"e (ommission recommended for t"e increase of mem#ers"ip fees. 3eri)ication o) "e"%er$hi!"e ,ndustrial -elations (ommission s"ould decide t"e representative c"aracter of a union$ eit"er #y examination of mem#ers"ip records or if it consider necessary #y "olding an election #y secret #allot open to all employees.

Reco!nition o) the 'nion$ !"e ;.(.1. "as #een of t"e opinion t"at$ Hit would #e desira#le to ma%e recognition compulsory under a (entral 1aw in all underta%ings employing :DD or more wor%ers or w"ere t"e capital invested in a#ove a stipulated siGe. A trade union see%ing recognition as a #argaining agent from an individual employer s"ould "ave a mem#ers"ip of at least =D per cent of wor%ers in t"at esta#lis"ment. !"e minimum mem#ers"ip s"ould #e <? per cent$ if recognition is soug"t for an industry in a local areaF. Tra(e Unioni$" in the Internationa Conte7t !o #e understood in t"e international context$ trade unionism must #e examined as part of a wider concept9t"e la#our movement as a w"ole. !"at movement consists of several more or less intimately relative related organiGation suc" as la#our parties$ wor%ers8 mutual insurance organisatoins$ producers8 or consumers8 cooperatives$ and wor%ers8 education and sports association. All "ave t"e common o#'ective of improving t"e material$ cultural$ and social status of t"eir mem#ers. W"at distinguis"es one organisation from anot"er is t"e particular aspects of t"at #road o#'ective it is endeavouring to pursue$ and t"e particular met"od it employees. !"e relations"ip among t"e various parts of t"e la#our movement varies from country to country and from period to period. ;ot all countries "ave produced t"e entire gamut of organisation referred to a#oveI in some countries t"e term Hla#our movementF is virtually synonymous wit" Htrade unionismF. #ri!in$ an( %ack!ro'n( o) the tra(e 'nion "o,e"ent &arly forms of labour organisatoins Union oriented$ mainly in Great Britain t"e U.S.A in t"e late :B t" and early :Ct" centuries$ as$ associations of wor%ers using t"e same s%ill. !"ere is no connection #etween trade unions and medieval craft guilds$ for t"e latter were composed of master craftsmen w"o owned capital and often employer several wor%ers. !"e early unions were formed a partly as social clu#s #ut soon #ecame increasingly concerned wit" improving wages and wor%ing conditions$ primarily #y t"e device of collective #argaining. rogressing from trade to trade wit"in t"e same city or area$ t"e clu#s formed local associations w"ic"$ #ecause t"ey carried on t"eir main activities on a purely local level$ were almost self9 sufficient. Wit" industrial development$ "owever$ local associations sooner or later followed t"e expansion of production #eyond t"e local mar%et and developed into national unions of t"e same trade. !"ese in turn formed national union federations. 'actors favouring unionism

!"e unions of t"e early :Ct" century were almost exclusively #ased upon a particular craft. But as mass production industries / w"ic" re)uired large num#ers of rapidly trained$ semis%illed wor%ers / developed$ a rend toward large9scale union organisation grew$ and toward t"e end of t"e :Ct" century Great Britain was including uns%illed wor%ers. Unions t"at recruited mem#ers from suc" groups / w"ose ran%s were expanding rapidly as a result of new tec"nologies / emerged eit"er as industrial unions or as general unions. ,ndustrial unions attempted to organiGe all wor%s employed in producing a given product or service$ sometimes including even t"e general office or w"ite9collar wor%ers. General unions included s%illed wor%ers and la#ourers of all grades from different industries$ even t"oug" t"ey usually started from a #ase in one particular industry. But c"anging tec"nologies$ union mergers$ and ideological factors led to t"e development of various %inds of unions t"at would not fit easily into any of t"e a#ove categories.

#%$tac e$ to 'nion or!ani$ation ,n most Western countries$ la#our movements arose out of t"e protest of wor%ers and intellectuals against social and political systems #ased upon discrimination according to ancestry$ social status$ income and property. Suc" a system offered few avenues for individual or collective advancement. Discrimination in political franc"ise 3restriction on or outrig"t denials of t"e vote4 and a lac% of educational opportunities$ anti9union legislation$ and t"e w"ole spirit of a society founded upon ac%nowledged class distinction were t"e main sources of t"e social protest at t"e root of modern la#our movements. Internationa Tra(e Union #r!ani$ation !"e large trade union movements of various countries for may years "ave maintained loose alliances #y 'oining international organisations of la#ourI federations of unions$ rat"er t"an individual unions$ usually "old mem#ers"ip. ,n :CD:$ t"e ,nternational 2ederation of !rade Unions was esta#lis"ed$ c"iefly under t"e guidance of German unions. ,t proved to #e ineffective and disappeared during World War ,. ,n :C:C it was revived at Amsterdam$ #ut immediately came into collision wit" t"e -ed ,nternational of 1a#our Unions$ esta#lis"ed #y t"e new government of t"e Soviet Union. !"e (ommunist organisation "ad a #rief period of expansion #ut soon dwindled away and "ad disappeared #efore :C=C. 4or ( Fe(eration o) Tra(e Union$ 84FTU9 #ri!in !"e W2!U was founded in :C>? on a worldwide #asis$ representing trade union organisatoins in more t"an ?D (ommunist and ;on9(ommunist countries. 2rom "e

outset$ t"e American 2ederation of 1a#our declined to participate. ,n 5anuary :C>C$ wit" t"e W2!U under (ommunist control$ Britis"$ USA and ;et"erlands trade union organisatoins wit"drew and went on to found t"e ,(2!UI #y 5une :C?: all ;on9 (ommunist trade unions and t"e &ogoslav 2ederation "ad wit"drawn. By t"e :CCDs$ after t"e collapse of t"e European (ommunist regimes$ mem#ers"ip #ecame uncertainI unions #ro%e t"eir lin%s wit" t"e (ommunist parties and most were later accepted into t"e ,(2!U. Most of t"e national trade union centers in Africa and 1atin America moved to t"e ,(2!U after :CBC$ and t"e 2renc" (onfederation Generale du !ravail "as proposed wit"drawal to its mem#ers. At t"e ;ov. :CC> (ongress in Damascus$ most W2!U delegates come from t"e developing countries 3(u#a$ ,ndia$ Sout" +orea$ 6ietnam4. ,n a move towards decentraliGation$ regional offices "ave #een set up in ;ew Del"i 3,ndia4$ 7avana 3(u#a4$ Da%ar 3Senegal4$ Damascus 3Syria4 and Moscow 3-ussia4. 4or ( Con)e(eration o) La%o'r 84CL9 2ounded in :C<D as t"e ,nternational 2ederation of ("ristian !rade Unions$ it went our of existence in :C>D as a large proportion of its =.> million mem#ers were in ,taly and Germany$ w"ere affiliated unions were suppressed #y t"e 2ascist and ;aGi regimes. -econstituted in :C>? and declining to merge wit" t"e W2!U or ,(2!U$ its policy was #ased on t"e papal encyclicals -eturn novarum 3:BC:4 and *uadragesimo anno 3:C=:4$ and in :C@B it #ecame t"e W(1 and dropped its openly confessional approac". !oday$ it "as rotestant$ Budd"ist and Moslem mem#er confederations$ as well as a mainly -oman (at"olic mem#ers"ip. ,n its concern to defend trade union freedoms and assist trade union development$ t"e W(1 differs little in policy from t"e ,(2!U a#ove. A mem#ers"ip of :: million in a#out CD countries is claimed. !"e #iggest group is t"e (onfederation of ("ristian !rade Unions 3(S(4 of Belgium 3:.< million4. #r!ani$ation !"e W(1 is organiGed on a federative #asis w"ic" leaves wide discretion to its autonomous constituent unions. ,ts governing #ody is t"e (ongress$ w"ic" meets every > years. !"e (ongress appoints 3or re9appoints4 t"e Secretary9General at eac" >9yearly meeting. !"e General (ouncil w"ic" meets at least once a year$ is composed of t"e mem#ers of t"e (onfederal Board 3at least << mem#ers$ elected #y t"e (ongress4 and representatives of national confederations$ international trade federations$ and trade union organisatoins w"ere t"ere is not confederation affiliated to t"e W(1. !"e (onfederal Board is responsi#le for t"e general leaders"ip of t"e W(1$ in accordance wit" t"e decisions and directive of t"e (ouncil and (ongress. ,ts "ead)uarters is at Belgium.

!"ere are regional organisation in 1atin America 3(aracas4$ Africa 3Ban'ul$ Gam#ia4 and Asia 3Manila4 and a liaison centre in Montreal. A muc" smaller international organisation$ t"e ,nternational 2ederation of ("ristian !rade Unions 3,2(!U4$ now called t"e W(1 3World (onfederation of 1a#our4$ is made up largely of (at"olic la#our unions in 2rance$ ,taly and 1atin America. !"e ,(2!$ at its founding congress in :C>C$ invited t"e affiliates of t"e ,2(!U to 'oin$ #ut t"e invitation was re'ected. 0n t"e international scene$ t"e W(1 "as #een a comparatively ineffective organisation. ,ts influence limited to a few countries in Europe and 1atin America. Internationa Con)e(eration o) Free Tra(e Union$ 8ICFTU9 #ri!in !"e founding congress o f t"e ,(2!U was "eld in 1ondon in Decem#er :C>C following t"e wit"drawal of some Western trade unions from t"e World 2ederation of !rade Unions 3W2!U4$ w"ic" "ad come under (ommunist (ontrol. !"e constitution$ as amended$ provides for cooperation wit" t"e U; and t"e ,10$ and for regional organisation to promote free trade unionism$ especially in developing countries. !"e ,(2!U represents some :<>m. wor%ers across :C@ affiliated organiGations in :=@ countries. .i"$ !"e ,(2!U aims to promote t"e interests of t"e wor%ing people and to secure recognition of wor%er8s organisation as free #argaining agentsI to reduce t"e gap #etween ric" and poorI and to defend fundamental "uman and trade union rig"ts. ,n :CC@$ it campaigned for t"e adoption #y t"e W!0 of a social clause$ wit" legally #inding minimum la#our standards. #r!ani$ation !"e (ongress meets every > years. ,t elects t"e executive Board of ?D mem#ers nominated on an area #asis for a >9years periodI ? seats are reserved for women nominated #y t"e Women8s (ommitteeI and t"e Board meets at least once a year$ 6arious (ommittees cover economic and social policy$ violation of trade union and ot"er "uman rig"ts$ trade union cooperation pro'ects and also t"e administration of t"e ,nternational Solidarity 2und. !"ere are 'oint ,(2!U9,nternational !rade Secretariat (ommittees for coordinating activities. !"e ,(2!U "as its "ead)uarters at BelgiumI #ranc" offices in Geneva and ;ew &or%$ and regional organiGations in America 3(aracas4$ Asia 3Singapore4 and Africa 3;airo#i4 *'r-o$e$ o) ICFTU

Striving for world peace$ t"e spreading of democratic institutions$ increasing t"e standard of living for wor%ers everyw"ere$ a worldwide strengt"ening of free trade unions$ and support to colonial people in t"eir struggle for freedom. !"e ,(2!U consistently opposed 2ascist as well as (ommunist dictators"ips$ and implemented t"at policy #y giving suc" aid as was possi#le to free la#our in Spain and certain 1atin American countries. ,t also furnis"ed direct financial assistance to wor%ers in 7ungary and !i#et and campaigned against racialist policies in Sout" Africa. Fai 're$ an( $'cce$$e$ o) the ICFTU 1ac% of "omogeneity among affiliates "indered t"e activity of t"e ,(2!U in many fields$ c"iefly #ecause of difference among its affiliates in t"e approac" to unions in (ommunist9controlled countries. ,t found its wor% to #e most effective in t"e area of international education. By :C@D it "as created an international Solidarity 2und of O<$DDD$DDD to aid wor%ers w"o #ecame victims of oppression and to promote democratic trade unionism in economically under developed countries. ro#lems of union organiGation were discussed at ,(2!U seminars in various parts of t"e world$ wit" experienced la#our leaders and la#our spo%esmen from t"e less industrialiGed countries participating. !o facilitate t"e functioning of its widespread activities$ t"e ,(2!U esta#lis"ed "ead)uarters in Brussels$ Belgium$ wit" regional or su#regional offices in may ot"er countries. 2orm one or more of t"ose centers it conducted numerous educational conferences$ maintained a residential trade union training college in (alcutta$ ,ndia and assisted in founding an African 1a#our (ollege in +ampala$ Uganda. ,t provided assistance to inexperienced wor%s in areas in t"e first stages of industrialiGation and sent organiGers to 1e#anon$ 0%inawa$ (yprus$ (ameroon$ ,ndia$ ,ndonesia$ ;igeria and elsew"ere. ,t "as #een t"e consistent policy of t"e ,(2!U to cooperate wit" t"e United ;ations Educational$ Scientific$ and (ultural 0rganisation and wit" t"e ,nternational 1a#our 0ffice in Geneva. ,t is w"olly financed #y contri#utions from its affiliates. Internationa La%o'r #r!ani$ation 8IL#9 !"e ,nternational 1a#our 0rganisatoin 3,104 was set up in :C:C #y t"e 6ersailles eace (onference as an autonomous #ody associated wit" t"e 1eague of ;ations. !"e ,10 was t"e only international organisation t"at survived t"e Second World War even after t"e dissolution of its parent #ody. ,t #ecame t"e first specialiGed agency of t"e United ;ations in :C>@ in accordance wit" an agreement entered into #etween t"e two organiGations. ,ndia "as #een a mem#er of t"e ,10 since its inception. A uni)ue feature of t"e ,10$ as distinct from ot"er international institutions$ is its tripartite c"aracter.

!"e aims and o#'ectives of ,10 are set out in t"e pream#le to its (onstitution and in t"e Declaration of "iladelp"ia 3:C>>4 w"ic" was formally annexed to t"e (onstitution in :C>@. !"e pream#le affirms t"at universal and lasting peace can #e esta#lis"ed only if its is #ased upon social 'ustice$ draws attention to t"e existence of conditions of la#our involving in'ustice$ "ards"ip and privation of a large num#er of people$ and declares t"at improvement of t"ese conditions is urgently re)uired t"roug" suc" means as t"e regulation of "ours of wor%$ prevention of unemployment$ provision of an ade)uate living wage$ protection of wor%ers against sic%ness$ disease$ and in'ury arising out of employment$ protection of c"ildren$ young persons and women$ protection of t"e interests of migrant wor%ers$ recognition of t"e principle of freedom of association$ and organisation of vocational and tec"nical education. !"e ream#le also states t"at t"e failure of any nation to adopt "uman conditions of la#our is an o#stacle in t"e way of ot"er nations desiring to improve la#our conditions in t"eir own countries. !"e t"ree main functions of t"e ,10 areI to esta#lis" international la#our standardsI to collect and disseminate information on la#our and industrial conditionsI and to provide tec"nical assistance for carrying ort programmes of social and economic development.

2rom t"e very #eginning$ t"e ,10 "as #een confronted wit" t"e tremendous tas% of promoting social 'ustice #y improving t"e wor% and conditions of life in all parts of t"e world. !"e ,10 consists of t"ree principal organs$ namely$ t"e ,nternational 1a#our (onference$ t"e Governing Body and t"e ,nternational 1a#our 0ffice. !"e wor% of t"e (onference and t"e Governing Body is supplemented #y t"at of -egional (onferences$ -egional Advisory (ommittees$ ,ndustrial (ommittees$ etc. !"e meeting of t"e General (onference$ "eld normally every year$ are attended #y four delegates from eac" mem#er State$ of w"om two are government delegates and one eac" representing respectively t"e employers and t"e wor% people of t"e State. !"e ,nternational 1a#our (onference is t"e supreme organ of t"e ,10 and acts as t"e legislative wing of t"e 0rganisatoin. !"e General (onference elect t"e Governing Body$ adopt t"e 0rganiGation8s #iennial programme and #udget$ adopt international la#our standards in t"e form of conventions and -ecommendations and provide a forum for discussion of social and la#our issues. !"e Governing Body is t"e executive wing of t"e 0rganisation. ,t appoints t"e Director9 General$ draws up t"e agenda of eac" session of t"e (onference and examines t"e implementation #y mem#er countries of its (onventions and -ecommendations. !"e ,nternational 1a#our 0ffice$ w"ose "ead)uarters are located at Geneva$ provides t"e

secretariat for all conferences and ot"er meetings and is responsi#le for t"e day9to9day implementation of t"e administrative and ot"er decisions of t"e (onference$ t"e Governing Body$ etc. !"e Director9General is t"e c"ief executive of t"e ,nternational 1a#our 0ffice. An important aspect of its wor% relates to t"e provision of assistance to mem#er States. ,t also serves as a clearing "ouse of information on all la#our matters. ,n order to ac"ieve its o#'ective$ t"e ,10 "as relied on its standard9setting function. !"e international la#our standards ta%e t"e form of (onventions and -ecommendations. A (onvention is a treaty w"ic"$ w"en ratified$ creates #inding international o#ligations on t"e country concerned. 0n t"e ot"er "and$ a -ecommendation creates no suc" o#ligations #ut is essentially a guide to national actions. !"e ,10 adopted a series of (onventions and -ecommendations covering "ours of wor%$ employment of women$ c"ildren and your persons$ wee%ly rest$ "olidays leave wit" wages$ nig"t wor%$ industrial safety$ "ealt"$ "ygiene$ la#our inspection$ social security$ la#our9management$ relations$ freedom of association$ wages and wage fixation$ productivity$ employment$ etc. 0ne of t"e fundamental o#ligations imposed on governments #y t"e (onstitutions of t"e ,10 is t"at t"ey must su#mit t"e instruments #efore t"e competent national or State or provincial aut"orities wit"in a maximum period of :B mont"s of t"eir adoption #y t"e (onference for suc" actions as mig"t #e considered practica#le. !"ese dynamic instruments continue to #e t"e principal means at t"e disposal of t"e ,10 to strive for esta#lis"ing a 'ust$ democratic and c"anging social order necessary for lasting peace. ,n fact$ t"ese instruments "ave #een included in t"e category of Hinternational la#our legislationF. !"ese (onventions and -ecommendations ta%en toget"er are %nown as t"e H,nternational 1a#our (odeF. Wilfred 5en%s descri#es t"e ,nternational 1a#our (ode as t"e corpus 'uris of social 'ustice. Re,ie& 5'e$tion$ :. !race t"e origin and growt" of trade union movement. <. W"at are t"e functions of a trade unionL =. W"at are t"e pro#lems of a trade unionL >. Briefly explain t"e "istory$ o#'ectives and functions of ,10.

UNIT III
4. (. -. Industrial Dis'utes )rie*an!es +andlin, E&'l .ee Dis!i'line

Less n 4 Industrial Dis'utes


Meaning According to Section <3+4 of t"e ,ndustrial Disputes Act$ :C>A$ and Eindustrial dispute8 means Hany dispute or difference #etween employers and employees or #etween employers and wor%men or #etween wor%men and wor%men$ w"ic" is connected wit" t"e employment or non9employment or t"e terms of employment or wit" t"e conditions of la#our of any person. !"us form t"e legal point of view$ industrial dispute does not merely refer to difference #etween la#our and capital as is generally t"oug"t$ #ut it refers to differences t"at affect groups of wor%men and employers engaged in an industry. Essentially$ t"erefore$ t"e differences of opinions #etween employers and wor%men in regard to employment$ non9 employment$ terms of employment or t"e conditions of la#our w"ere t"e contesting parties are directly and su#stantially interested in maintaining t"eir respective contentious constitute t"e su#'ect9matter of an industrial dispute. &auses of Industrial Dis"utes !"e causes of industrial conflict or disputes "ave #een muc" varied. !"ese may #e descri#ed partly a psyc"ological or social and partly political$ #ut predominantly economic. Some important factors responsi#le for industrial conflict and poor industrial relations many #e #riefly stated as follows. Management8s general apat"etic towards wor%ers or employees #ecause of t"eir contention t"at t"ey want more and more economic or monetary rewards and want to do less wor%. Mental inertia on t"e part of #ot" management and la#our. 1ac% of proper fixation of wages inconformity wit" cost of living and a reasona#le wage structure generally. Bad wor%ing conditions. Attempts #y management to introduce c"anges 3suc" a rationaliGation$ moderniGation or automation4 wit"out creating a favoura#le to appropriate climate or environment for t"e same.

1ac% of competence or training on t"e part of first9line supervision as well management at upper levels in t"e practice of "uman relations. Assignment of unduly "eavy wor%9loads to wor%er$ unfair la#our practices 3suc" as victimiGation or undue dismissal4. 1ac% of strong and "ealt"y trade unionism$ lac% of a proper policy of union recognition and inter9union rivalries. A spirit of non9cooperation and a general tendency among employees to criticiGe or oppose managerial policies or decisions even w"en t"ey may #e in t"e rig"t directions. A fall in t"e standard of discipline among employees largely due to wrong or improper leaders"ip$ often resulting in insu#ordination or diso#edience on t"e part of employees. Difference in regard to s"aring t"e gains of increased productivity. ,nade)uate collective #argaining agreements. 1egal complexities in t"e industrial relations mac"inery or settlement of industrial disputes. 1ac% of necessary c"anges in t"e wor%ing of government in accordance wit" c"anging needs and circumstances. (om#ination of too muc" law and too little respect for law even at "ig" levels. Growing factional and personal difference among ran%9and9file employees w"o are union mem#ers or union leaders and a tendency on t"e part of t"e management in some cases to prefer "aving wit" outside leaders and not give due respect to wor%er9leaders. olitical environment of t"e countryI and Agitation and wrong propaganda #y selfis" la#our leaders to furt"er t"eir own interests of t"eir own party.

Forms of Dis"utes Stri%es$ loc%outs and g"eraos are t"e most common forms of disputes. #tri$e

HStri%eF means a cessation of wor% #y a #ody of persons employed in any industry acting in com#inationI or a concerted refusal or a refusal under a common understanding or an num#er of persons w"o are or "ave #een so employed to continue to wor% or to accept employment. !"e following points may #e noted regarding t"e definition of stri%e. Stri%e can ta%e place only w"en t"ere is a cessation of wor% or refusal to wor% #y t"e wor%men acting in com#ination or in a concerted manner. A concerted refusal or a refusal under a common understanding of any num#er of persons to continue to wor% or to accept employment will amount to a stri%e. A general stri%e is one w"en t"ere is a concert of com#ination of wor%ers stopping or refusing to resume wor%. Going on mass casual leave under a common understanding amounts to a stri%e. ,f on t"e sudden deat" of a fellow9wor%er$ t"e wor%men acting in concert refuse to resume wor%$ it amounts to a stri%e 3;ational !extile Wor%ers8 Union 6s. S"ree Meena%s"i Mills 3:C?:4 ,, 1.1.5. ?:@4. !"e stri%ing wor%man$ must #e employed in an Eindustry8 w"ic" "as not #een closed down. Even w"en wor%men cease to wor%$ t"e relations"ip of employers and employees is deemed to continue al#eit in a state of #elligerent suspension.

T "es of #tri$e %tay-in( sit-down( pen-down strike: ,n all suc" cases$ t"e wor%men after ta%ing t"eir seats$ refuse to do wor%. All suc" acts on t"e part of t"e wor%men acting in com#ination$ amount to a stri%e. )o-slow: Go9slow does not amount to stri%e$ #ut it is a serious case of is conduct. %ympathetic strike : (essation of wor% in t"e support of t"e demands of wor%men #elonging to ot"er employer is called a sympat"etic stri%e. !"e management can ta%e disciplinary action for t"e a#sence of wor%men. 7owever$ in -emalingam 6s. ,ndian Metallurgical (orporation$ Madras$ :C@>9, 1.1.5.B:$ it was "eld t"at suc" cessation of wor% will not amount to a stri%e since t"ere is no intention to use t"e stri%e against t"e management. #unger strike: Some wor%ers may resort to fast on or near t"e place of wor% or residence of t"e employers. ,f it is peaceful and does not result in cessation of

wor%$ it will not constitute a stri%e. But if due to suc" an fact$ even t"ose present for wor%$ could not #e given wor%$ it will amount to stri%e 3 epariac" Sugar Mills 1td. 6s. !"eir Wor%men4. *ightning or wildcat strike: A wildcat stri%e is an unofficial stri%e i.e. a stri%e not sanctioned #y t"e union. Suc" stri%es occasionally occur in violation of t"e no9 stri%e pledge in collective #argaining agreements. ,n suc" a situation union is o#liged to use its #est efforts to end t"e stri%e. Suc" stri%es are pro"i#ited in pu#lic utility services under Section << of t"e ,ndustrial Disputes Act$ :C>A. 2urt"er$ t"e standing order of a company generally re)uired for notice. +ork-to-rule. Since t"ere is a no cessation of wor%$ it does not constitute a stri%e.

Loc$out Section <3:4 of t"e ,ndustrial Disputes Act$ :C>A defines Hloc%outF to mean t"e temporary closing of a place of employment or t"e suspension of wor%$ or t"e refusal #y an employers to continue to employ any num#er of persons employed #y "im$ loc%out$ t"us$ is t"e counterpart of stri%e / t"e corresponding weapon t"e "ands of employer to resist t"e collective demands of wor%men or to enforce "is terms. ,t "as #een "eld #y t"e courts t"at t"e suspension of wor% as a disciplinary measure does not amount to loc%out. Similarly$ temporary suspension of wor% called lay9off is not loc%9out. (herao G"erao means encirclement of t"e managers to criminally intimidate "im to accept t"e demands of t"e wor%ers. ,t amounts to criminal conspiracy under Section :<D9A of t"e ,. .(. and is not saved #y Sec. :A of t"e !rade Unions Act on t"e grounds of its #eing a concerted activity. %egulation of stri$es and loc$)outs Employees do not "ave an unfettered rig"t to go on stri%e nor do employers "ave suc" rig"t to impost loc%out. !"e ,ndustrial Disputes Act lays down several restrictions on t"e rig"ts of #ot" t"e parties. A stri%e or loc%out commenced or continued in contravention of t"ose restriction is termed illegal and t"ere is serve punis"ment provided for t"e same. ,llegal stri%es and loc%out are of two types. !"ose w"ic" are illegal form t"e time of t"eir commencementI and !"ose w"ic" are not illegal at t"e time of commencement #ut #ecome illegal su#se)uently.

Section << and <= of t"e ,DA provide for certain restriction w"ic" if not followed ma%e stri%es and loc%outs illegal from t"eir very commencement. According to t"is section$ no person employed s"all go on stri%e in #reac" of contract9 Wit"out giving notice of stri%e to t"e employer$ as "ere matter provided$ wit"in @ wee% #efore stri%ingI or Wit"in fourteen days of giving suc" noticeI or Before t"e expiry of t"e date of stri%e specified in any suc" notice as aforesaidI or During t"e pendency of any conciliation proceedings #efore a (onciliation 0fficer and seven days after t"e conclusion of suc" proceedings.

&onse*uences of illegal stri$es and loc$)outs+ :. ,enalty for illegal strikes -%ec./0 1!2: Any wor%man w"o commences$ continues or ot"erwise acts in furt"erance of a stri%e w"ic" is illegal$ s"all #e punis"a#le wit" imprisonment for a term w"ic" may extend to : mont"$ or wit" fine w"ic" may extend to -s. ?D$ or wit" #ot".

<. ,enalty for illegal lock-out -%ec./0 /!: Any employer w"o commences$ continues or ot"erwise acts in furt"erance of a loc%9out w"ic" is illegal$ s"all #e punis"a#le wit" imprisonment for a term w"ic" may extend to : mont"$ or wit" fine w"ic" may extend to -s. :$DDD or wit" #ot". =. ,enalty for instigation( etc. -%ec. /32: Any person w"o instigates or incites ot"ers to ta%e part in$ or ot"erwise acts in furt"erance of$ a stri%e or loc%9out w"ic" is illegal$ s"all #e punis"a#le wit" imprisonment for a term w"ic" may extend to @ mont"s$ or wit" fine w"ic" may extend to -s. :$DDD or wit" #ot". >. ,enalty for giving financial aid for illegal strikes and lock-outs -%ec. /42 . Any person w"o %nowingly expends or applies any money in direct furt"erance or support of any illegal stri%e or loc%9out s"all #e punis"a#le wit" an imprisonment for a term w"ic" may extend to @ mont"s$ or wit" fine w"ic" may extend to -s. :$DDD or wit" #ot". Machiner for !revention and #ettlement of Industrial %elations !"e mac"inery for prevention and settlement of t"e disputes "as #een given in t"e following figure.

Machiner/ )or *re,ention an( Sett e"ent o) In('$tria Re ation$

6oluntary Met"ods

Government Mac"inery

Statutory Measures

(ode of Discipline

!ripartite Mac"inery

Wor%er8s articipation

(ollective Bargaining

,.D. Act$ :C>A

State Acts

1a#our Administration 3States P (entral 1evels4 Wor%s (ommittee (onciliation 6oluntary Ar#itration (ourt of En)uiry Ad'udication

(onciliation 0fficers

(onciliation Board

1a#our (ourt

,ndustrial !ri#unal

;ational !ri#unal

,oluntar Methods &ode of disci"line 2ormally announced in :C?B$ t"e (ode of Discipline provides guidelines for t"e wor%ers$ unions and employers. !"e code w"ic" was approved #y ma'or national trade unions and principal organisation of employers en'oyed on t"em to create an environment of mutual trust and cooperation and to settle t"e disputes #y mutual negotiation$ conciliation and voluntary ar#itration. ,t re)uired t"e employers and wor%ers to utiliGe t"e existing mac"inery for t"e settlement of disputes. A few important provisions of code of discipline are. Stri%es and loc%out cannot #e declared wit"out proper notice. !"e parties s"ould not ta%e any action wit"out consulting eac" ot"er.

!"ere s"ould #e no go slow statistics or any resort to deli#erate damage to plant or property or resort to acts of violence$ intimidation$ coercion etc.

!"e code "as moral sanction only and it does not entail any legal lia#ility or punis"ment. Tri"artite machiner !ripartite mac"inery consists of various #odies li%e ,ndian 1a#our (onference$ t"e Standing 1a#our (ommittee$ t"e ,nternational (ommittees$ t"e (entral ,mplementation and Evaluation (ommittee and t"e (ommittee on conventions. Generally$ t"ese committees include representatives from centre and t"e states$ and t"e same num#er of wor%ers8 and employers8 organisatoins. !"ese various committees are #asically of advisory nature$ yet t"ey carry considera#le weig"t among t"e government$ wor%ers and employers. -or$ers. "artici"ation in management Wor%ers8 participation in management is an essential ingredient of industrial democracy. !"e concept of wor%ers participation in management is #ased on H7uman -elationsF approac" to management w"ic" #roug"t a#out new set of values to la#our and management. According to one view$ wor%ers participation is #ased on t"e fundamental concept t"at t"e ordinary wor%ers invest "is la#our in$ and ties "is fate to$ "is place of wor% and$ t"erefore$ "e "as a legitimate rig"t to "ave a s"are in influencing t"e various aspects of company policyF.

According to G.S. Walpole$ participation in management gives t"e wor%ers a sense of importance$ pride and accomplis"mentI it gives "im t"e freedom and t"e opportunity for self9expressionI a feeling of #elonging to "is place of wor% and a sense of wor%mans"ip and creativity. ,t provides for t"e integration of "is interests wit" t"ose of t"e management and ma%es "im a 'oint partners in t"e enterpriseF. !"e forms of wor%ers participation in management vary from industry to industry and country to country depending upon t"e political system$ pattern of management relations and su#'ect or area of participation. !"e forms of wor%ers participation may #e as follows. :. 5oint (onsultation Modes <. 5oint Decision Model =. Self Management$ or Auto Management Sc"eme

>. Wor%ers -epresentation on Board ,t s"ould #e #orne in mind t"at w"en individuals are provided wit" opportunities for expression and s"are in decision9ma%ing$ t"ey s"ow muc" initiative and accept responsi#ility su#stantially. !"e rationale of wor%ers8 participation in management lies in t"at it "elps in creating amongst t"e wor%ers a sense of involvement in t"eir organisatoin$ a #etter understanding of t"eir role in t"e smoot" functioning of industry and provides t"em a means of self9realiGation$ t"ere#y$ promoting efficiency and increased productivity. &ollective bargaining (ollective #argaining is a source of solving t"e pro#lems of employees in t"e wor% situation collectively. ,t provides a good climate for discussing t"e pro#lems of wor%ers wit" t"eir employers. !"e employees put t"eir demands #efore t"e employers and t"e employers also gives certain concession to t"em. !"us it ensures t"at t"e management cannot ta%e unilateral decisions concerning t"e wor% ignoring t"e wor%ers. ,t also "elps t"e wor%s to ac"ieve reasona#le wages$ wor%ing conditions$ wor%ing "ours$ fringe #enefits etc. ,t provides t"em a collective strengt" to #argain wit" t"e employer. ,t also provides t"e employer some control over t"e employees. !"e process of collective #argaining is #ipartite in nature i.e.$ t"e negotiations are #etween t"e employers wit"out a t"irds party8s intervention. !"us collective #argaining serves to #ridge t"e emotional and p"ysiological #etween t"e wor%ers and employers t"roug" direct discussions.

(overnment Machiner !"e Ministry of 1a#our and Employment at t"e centre is t"e %ey agency for t"e policy formulation and administration in all t"e matters pertaining to la#our. !"e State governments wit" t"e cooperation of t"eir la#our departments are responsi#le for t"e enforcement t"ereof. !"e Directorate General of Employment and !raining 3DGE!4$ 0ffice of ("ief 1a#our (ommissioner 3(1(4 3(entral4$ t"e Director General of Mines Safety 3DGMS4$ t"e Director General of 2actory Advice and 1a#our ,nstitutes$ and ,ndustrial !ri#unals are some of t"e agencies t"roug" w"ic" t"e (entral Government disc"arges its functions related to framing of la#our laws and settlement of industrial disputes. !"e 1a#our Secretary is t"e overall inc"arge of policy formulation and administration$ and commissioners of la#our in t"e States are t"e operative arms for t"e effective implementation of 1a#our 1aws.

#tatutor Measures / Industrial Dis"utes 0ct, 1234 !"e States are free to frame t"eir own la#our laws as t"e la#our falls in t"e concurrent list$ Some States li%e Ma"aras"tra$ M. .$ U. . and -a'ast"an "ave t"eir own Acts. ,n t"e rest of t"e states$ ,ndustrial Disputes Act$ :C>A applies. 7owever$ in t"e States "aving t"eir own Acts$ t"e ,DA$ :C>A will #e applica#le to t"e industries not covered #y t"e State 1egislation. 2ormally announced in :C>A$ t"e ,ndustrial Disputes Act$ "as #een amended several times since t"en. Under t"e Act t"e following aut"orities "ave #een proposed for t"e investigation and settlement of industrial disputes.

-or$s committees !"e ,DA$ :C>A provides for setting up wor%s committees in every organisation "aving :DD or more employees. 7aving representatives of employees and employees$ t"ese are consultative #odies and are set up for maintaining "armonious relations at t"e wor% lace and sort out t"e difference if any. !"oug" t"e act does not define t"e 'urisdiction of t"ese committees$ yet t"eir functions mainly include providing proper wor%ing conditions and amenities for t"e welfare of employees at t"e wor% place or away from t"e wor%. A wor% committee aims at promoting measures for securing t"e preserving amity and good relations #etween employees and wor%ers. &onciliation W"en t"e services of a neural party are availed for t"e amica#le solution of a dispute #etween t"e disputing parties$ t"is practice is %nown as conciliation. !"e ,DA$ :C>A provides for conciliation and it can #e utiliGed eit"er #y appointing (onciliation 0fficer or #y setting up Board or (onciliation. !"e (onciliation 0fficers are appointed #y t"e Government #y notifying in t"e 0fficial GaGettee. Usually at t"e State level$ (ommissioners of 1a#our$ Additional and Deputy (ommissioners of 1a#our act as (onciliation 0fficer for disputes arising in any underta%ing employing less t"an twenty wor%ers. ,n t"e conciliation process t"e officer ties to #ring t"e disputing parties toget"er towards a settlement of t"e dispute and "ence wor%s as a mediator. !"e intervention of conciliation officer may e mandatory or discretionary. But in t"e disputes related to pu#lic utilities in respect of w"ic" proper notice is served to "im$ "is intervention #ecomes mandatory. !"e Board of (onciliation is a "ig"er forum and is constituted for a specific dispute. ,t consists of e)ual num#er of representatives of employers and employees under t"e c"airmans"ip of an independent person$ appointed #y t"e government. !"e Board "as to su#mit its report to t"e government regarding t"e dispute wit"in two mont"s from t"e

date dispute was referred to it. 7owever$ depending on t"e case$ t"e period can #e extended. ,oluntar arbitration ,ndustrial Disputes 3Amendment4 Bill$ :C?@ incorporated Section :DA favouring voluntary ar#itration. ,n case of existed or appre"ended dispute$ t"e disputing parties can enter into an ar#itration agreement in writing. !"e success of voluntary ar#itration depends on Ha sufficient degree of mutual confidence in decision #y agreement on su#'ects w"ic" may #e su#mitted for ar#itrationF. &ourt of en*uir !"e ,DA$ :C>A empowers t"e appropriate government to constitute a (ourt of En)uiry. !"is #ody #asically is a fact9finding agency$ constituted 'ust to reveal t"e causes of t"e disputes and does not care muc" for t"e settlement t"ereof. !"e (ourt of En)uiry is re)uired to su#mit its report to t"e government ordinarily wit"in six mont"s from t"e commencement of en)uiry. !"e report of t"e court s"all #e pu#lis"ed #y t"e government wit"in =D days of its receipt. 0d5udication ,f t"e dispute is not settled #y any ot"er met"od$ t"e government may refer it for ad'udication. 7ence it is a compulsory met"od w"ic" provides for t"ree9tier system for ad'udication of industrial disputes. !"is mac"inery consists of 1a#our (ourt$ ,ndustrial !ri#unals and ;ational !ri#unal. !"e first two #odies can #e set up eit"er #y State or (entral Government #ut t"e ;ational !ri#unal can #e constituted #y (entral Government only$ w"en it t"in%s t"at t"e solution of dispute is of national significance. A 1a#our (ourt consists of one person only$ called residing 0fficer$ w"o is or "as #een a 'udge of a 7ig" (ourt. !"e 'urisdiction of ,ndustrial !ri#unal is comparatively wider t"an 1a#our (ourts$ and furt"er t"e residing 0fficer of !ri#unal can "ave two assessors may #e appointed #y t"e (entral Government to "elp its residing 0fficer. 1a#our (ourts and !ri#unals are now re)uired to su#mit award to t"e appropriate government wit"in t"ree mont"s in case of individual disputes !"e su#mitted award s"all #e pu#lis"ed #y government wit"in =D days from t"e date of its receipt. ,t s"all come into force on t"e expiry of =D days from t"e date if its pu#lication and s"all #e operative for a period of one year$ unless declared ot"erwise #y t"e appropriate government. %eview 6uestions :. W"at is an industrial disputeL W"at are t"e causes of industrial disputesL <. W"at are t"e forms of industrial disputesL

=. Explain various mac"ineries for settlement of industrial disputes.

Less n ( )rie*an!es +andlin,


A grievance is a sign of t"e employees8 discontent wit" 'o# and its nature. ,t is caused due to t"e difference #etween employee expectation and management practice. Beac" defines a grievance as$ Eany dissatisfaction or feeling of in'ustice in connection wit" one8s employment situation t"at is #roug"t to t"e notice of t"e management. 5ucius defines a grievance as Eany discontent or dissatisfaction$ w"et"er exposed or not$ w"et"er valid or not$ arising out of anyt"ing connected wit" t"e company w"ic" an employee t"in%s$ #elieves or even feels to #e unfair$ un'ust and ine)uita#le8. A grievance is a pro#lem su#mitted #y an employee or #y a few employees of different types. ,t may #e conce>ring a situation or may li%ely to affect t"e terms and conditions of employment of one wor%er or a few wor%ers. ,n t"e ,ndian context$ Egrievance8 may #e said to Ht"e representation #y a wor%er$ a group of wor%ers or t"e unions to t"e management relation to t"e terms and conditions of employment$ #reac" of t"e freedom of association or t"e provisions of standing orders or non9implementation of t"e Government orders$ conciliation agreeme>nts or ad'udicators8 awardsF. ,t may also include representation against non9compliance wit" provision of a collective agreement in an esta#lis"ment w"ere it "as #een signed. Grievances usually result in definite and considera#le loses to employee morale$ efficiency and productivity. !"e accumulation of grievance leads to stri%es$ loc% outs and ot"er forms of conflicts. !"erefore$ proper disposal of grievances deserves special and ade)uate consideration in any programme of "armoniGing industrial relations. 0reas of (rievances 1rie,ance$ re$' tin! )ro" &orkin! con(ition$ oor p"ysical conditions of wor% place. 1ac% of proper tools$ mac"ines and e)uipments. 2re)uent c"anges in sc"edules or procedures. -igid production standards ,mproper matc"ing of t"e wor%er wit" t"e 'o#.

oor relations"ip wit" t"e supervisor.

1rie,ance$ re$' tin! )ro" "ana!e"ent -o ic/ an( -ractice$ oor payment 1ac% of 'o# security ,nade)uate #enefits suc" as medical #enefits$ leave travel concession etc. 1eave facilities Seniority !ransfer romotion 1ac% of career planning and development 7ostility towards la#our union Defective leaders"ip style (ommunication gap

(rievances resulting from alleged violations of 6iolation collective #argaining agreement 6iolation of (entralKState laws 6iolation of common rules

(rievances resulting from "ersonal malad5ustment 0ver am#ition Excessive self9esteem

Methods of Indentif ing (rievances !"e following met"ods can "elp t"e employer to identify t"e grievances. :. 5irective observation. +nowledge of "uman #e"aviour is re)uisite )uality of every good manager. 2rom t"e c"anged #e"aviour of employees$ "e s"ould #e

a#le to snuff t"e causes of grievances. !"is "e can do wit"out its %nowledge to t"e employee. !"is met"od will give general pattern of grievances. ,n addition to normal routine$ periodic interviews wit" t"e employees$ group meetings and collective #argaining are t"e specific occasions w"ere direct o#servation can "elp in unfolding t"e grievances. <. )rip bo6es. !"e #oxes 3li%e suggestion #oxes4 are placed at easily accessi#le spots to most employees in t"e organisation. !"e employees can file anonymous complaints a#out t"eir dissatisfaction in t"ese #oxes. Due to anonymity$ t"e fear of managerial action is avoided. Moreover management8s interest is also limited to t"e free and fair views of employees. =. 7pen door policy. Most democratic #y nature$ t"e policy is preac"ed most #ut practiced very rarely in ,ndian organiGations. But t"is met"od will #e more useful in a#sence of an effective grievance procedure$ ot"erwise t"e organisation will do well to "ave a grievance procedure. 0pen door policy demands t"at t"e employees$ even at t"e lowest ran%$ s"ould "ave easy access to t"e c"ief executive to get "is grievances redressed. >. &6it interview. 7ig"er employee turnover is a pro#lem of every organisation. Employees leave t"e organisation eit"er due to dissatisfaction or for #etter prospects. Exit interviews may #e conducted to %now t"e reasons for leaving t"e 'o#. roperly conducted exit interviews can provide significant information a#out t"e strengt"s and wea%nesses of t"e organisation and can pave way for furt"er improving t"e management policies for its la#our force. !rinci"les or (uidelines for (rievance 7andling :. ,n "andling grievances$ a considera#le amount of time must #e spent in tal%ing to employeesI gat"ering data from t"em and passing on various types of information. Suc" tal%s to #e most effective$ s"ould conform to definite patterns and ad"ere to well tested rules. <. !"e manager must see% to develop an attitude towards employees t"at s"ould #e "elpful in gaining t"eir confidence. !"e management s"ould also display a sincere interest in t"e pro#lems of employees and t"eir constructive willingness to #e to "elp to t"em wit" a view to gain not only t"eir confidence #ut also t"eir utmost loyal #y and genuine cooperation. =. !"e procedure adopt #y t"e management in "andling t"e grievances must #e apparent.

>. Grievances s"ould #e "andled in terms of t"eir total effect on t"e organisation and not solely t"eir immediate or individual effect. #te"s in handling grievances ,t is important t"at grievance must #e "andled in a systematic manner. !"e following steps s"ould #e ta%en in "andling grievances. :. Defining$ descri#ing or expressing t"e nature of t"e grievances as clearly and fully as possi#leI <. Gat"ering all facts t"at serve to explain w"en$ "ow$ w"ere$ to w"om and w"y t"e grievance occurredI =. Esta#lis"ing tentative solutions or answers to t"e grievancesI >. Gat"ering additional information to c"ec% t"e validity of t"e solutions and t"us ascertain t"e #est possi#le solutionI ?. Applying t"e solution$ and @. 2ollowing up t"e case to see t"at it "as #een "andled satisfactorily and t"e trou#le "as #een eliminated.

1rie,ance han( in! -roce('re$ Grievance procedure is t"e most significant c"annel t"roug" w"ic" dissatisfaction of employees can #e communicated to management. A grievance procedure is an ordered multistep process t"at t"e employer and employee 'ointly use to redress grievances and resolve disputes t"at arise. !"us a formal procedure w"ic" attempts to resolve t"e differences of parties involved$ in an orderly$ peaceful and expeditious manner$ may #e defined as grievance procedure or grievance redressal mac"inery. !"e steps in t"is mac"inery vary from organisation to organisation. 2or "andling grievances$ as a first step$ t"e management is re)uired to designate t"e persons for eac" of t"e various departments to #e approac"ed #y t"e wor%s and t"e department "eads for "andling grievances as t"e second step. A Grievance (ommittee may also #e constituted wit" representatives of wor%ers and management. !"e model grievance producer give t"e various steps t"roug" w"ic" a grievance s"ould #e processed. 2irst$ t"e grievance is ta%en to t"e departmental representative of t"e management w"o "as to give an answer wit"in >B "ours. 2ailing t"is$ t"e aggrieved wor%erK employee can

#eet t"e departmental "ead along wit" t"e departmental representative of t"e management and t"is step is allotted t"ree days. A#ove t"is$ t"e grievance is ta%en up #y t"e Grievance (ommittee w"ic" s"ould ma%e its recommendations to t"e manager wit"in seven days. !"e final decision of t"e management "as to #e communicated to t"e wor%ers or employee concerned wit"in t"ree days of t"e Grievance (ommittee8s recommendations. ,f t"e employee is not satisfied$ "e can ma%e an appeal for revision and t"e management "as to communicate its decision wit"in a wee%. ,n t"e case of non9settlement$ t"e grievance may #e referred to voluntary ar#itration. !"e formal conciliation mac"inery will not #e invo%ed till t"e final decision of t"e top management "as #een found unaccepta#le #y t"e aggrieved employee. ,n t"e case of any grievance arising out of disc"arge or dismissal$ t"e wor%man or employee "as t"e rig"t to appeal eit"er to t"e dismissing aut"ority or to a senior aut"ority specific #y t"e management wit"in a wee% from t"e date of dismissal or disc"arge. Alt"oug" t"e grievance procedure gives t"e employees opportunity to raise t"eir grievances to t"e "ig"est possi#le level of management$ yet t"ey s"ould #e resolved as close as possi#le to t"eir source. !"e main o#'ect of grievance procedure is to resolve t"e grievance at earliest possi#le stage. !"e management must convince itself t"at 'ustice is not only done$ #ut seen to #e done and t"e presence of a trade union representative wit" t"e aggrieved party "elps to ensure fair play not only for t"e employee concerned$ #ut also for "is management.

(ASE Sand / 0India1 Li&ited )rie*an!e Settle&ent Pr !edure :. Any aggrieved employee may approac" "is immediate supervisor for t"e redressal of any complaint regarding "is wor%$ conditions pertaining to "is wor%$ etc. !"e supervisor will loo% into t"e complaint$ discuss wit" "is departmental "ead if necessary$ w"o will$ in turn$ consult t"e ersonal Department if necessary and give a reply to t"e aggrieved employee wit"in a period of = days to one wee%. <. ,f t"e aggrieved employee is not satisfied wit" t"e reply received from "is supervisor$ "e may approac" "is departmental "ead$ w"o will$ in turn$ investigate t"e matter personally and give a reply wit"in a furt"er period of = days to one wee%. =. ,f t"e employee concerned is still not satisfied$ "e may approac" t"e 2actory Manager eit"er personally or in writing for t"e redressal of "is complaint. !"e

2actory Manager will loo% into t"e complaint and t"e reply given #y "im will #e final in t"e matter. Suc" a reply in given generally wit"in a wee%. >. ,f t"e employee still continues to #e aggrieved$ "e may approac" t"e Management t"roug" t"e Union w"en t"e matter is ta%en up at t"e Union9Management forum for settlement on tripartite #asis or #y ad'udicationK ar#itration. ?. ,f it is necessary for t"e wor%man to leave t"e wor% place on a call from any aut"ority under t"is procedure$ previous permission from "is immediate superior s"ould #e o#tained. @. ,f a grievance arises out of an order given #y t"e Management$ t"e said order s"all #e complied wit" #efore t"e wor%man concerned invo%es t"e procedure laid down for redressal of grievances.

%eview 6uestions :. Define Egrievance8 and state t"e causes of grievances. <. ,ndicate t"e guidelines for "andling grievances. =. Discuss #riefly grievance "andling procedures.

Less n E&'l .ee Dis!i'line


Discipline may #e defined as an attitude of mind w"ic" aims at inculcating restraint$ orderly #e"aviour and respect for and willing o#edience to a recogniGed aut"ority. ,n any industry discipline is a useful tool for developing$ improving and sta#iliGing t"e personality of wor%ers. ,ndustrial discipline is essential for t"e smoot" running of an organisation$ for increasing production and productivity$ for t"e maintenance of industrial peace and for t"e prosperity of t"e industry and t"e nation. ,t is a process of #ringing multifarious advantages to t"e organisation and its employees. Meaning We#ster8s Dictionary gives t"ree meanings to t"e world HdisciplineF. 2irst$ it is t"e training t"at corrects$ moulds$ strengt"ens or perfects individual #e"aviourI second$ it is control gained #y enforcing o#edienceI and t"ird$ it is punis"ment or c"astisement. According to Dr. Spiegel$ Hdiscipline is t"e force t"at prompts an individual or a group to o#serve t"e rules$ regulations and procedures w"ic" are deemed to #e necessary to t"e attainment of an o#'ectiveI it is force or fear of force w"ic" restraints an individual or a group from doing t"ings w"ic" are deemed to #e destructive of group o#'ectives. Discipline is a product of culture and environment and a #asic part of t"e management of employee attitudes and #e"aviour. ,t is a determinative and positive willingness w"ic" prompts individuals and groups to carry out t"e instructions issued #y management$ and a#ide #y t"e rules of conduct and standards or wor% w"ic" "ave #een esta#lis"ed to ensure t"e successful attainment of organiGational o#'ectives. ,t is also a punitive or a #ig stic% approac" w"ic" imposes a penalty or punis"ment in case of disciplinary violations. !"ere are two types of discipline$ one is positive and t"e ot"er is negative. ,ositive 5iscipline employs constructive force to secure its compliance. ,t is immeasura#ly more effective and pays a greater role in #usiness management. "egative 5iscipline( on t"e ot"er "and$ includes #ot" t"e application of penalties for violation and t"e fear of penalties t"at serve as a deterrent to violation. ositive discipline prevails only w"ere t"e employees "ave a "ig" morale. ,n ot"er situations$ negative discipline #ecomes unavoida#le. Ai&s and #2e!ti*es !"e main aims and o#'ectives of discipline are.

!o o#tain a willing acceptance of t"e rules$ regulations and procedures of an organisation so t"at organiGational o#'ectives can #e attainedI !o develop among t"e employees a spirit of tolerance and a desire to ma%e ad'ustmentsI !o give and see% direction and responsi#ilityI !o create an atmosp"ere of respect for "uman personality and "uman relationsI !o increase t"e wor%ing efficiency morale of t"e employeesI and !o impart an element of certainty despite several differences in informal #e"aviour patterns and ot"er related c"anges in an organisation.

Indisci"line !"e term Eindiscipline8 generally means t"e violation of formal or informal rules and regulations in an organisation. ,ndiscipline$ if unc"ec%ed$ will affect t"e morale of t"e organisation. 7ence indiscipline is to #e c"ec%ed #y appropriate positive means to maintain industrial peace. %auses 3 r indis!i'line in r,ani/ati ns ,t is more complex and difficult to identify t"e causes of indiscipline. !"e policies and procedures of organiGations$ t"e attitude of t"e management towards wor%ers$ t"e attitude of wor%ers$ individual #e"aviors etc. are t"e causes for indiscipline. !"e important causes for indiscipline are. ,neffective leaders"ip to control$ coordinate and motivate wor%ers. 1ow wages and poor wor%ing conditions. 1ac% of timely redressal or wor%ers8 grievances. 1ac% or defective grievance procedure. ("aracter of t"e wor%ers suc" as gam#ling$ drin%ing$ violet nature etc. olitical influence.

!rinci"le Of 'ffective Disci"line Disciplinary actions "ave serious repercussions on t"e employees and on t"e industry$ and$ t"erefore$ must #e #ased on certain principles in order to #e fair$ 'ust and accepta#le

to #e t"e employee and t"eir unions. !"erefore$ in any discipline maintenance system$ certain principles are to #e o#served suc" as. :. !"e rules of discipline$ as far as possi#le$ s"ould #e framed in cooperation and colla#oration wit" t"e representatives of employees for t"eir easy implementation. Employees in a group s"ould #e associated in t"e process of discipline enforcement. !"e group as a w"ole can control an individual wor%s muc" more effectively t"an t"e management can t"roug" a process of remote control or #y imposing occasional penalties. ,nformal groups are li%ely to exert social pressures on wrong9doers avoiding t"e need for negative disciplinary actions. <. !"e rules and regulations s"ould #e appraised at fre)uent and regular intervals to ensure t"at t"ey are appropriate$ sensi#le and useful. =. !"e rules and regulations s"ould #e flexi#le to suit different categories of employees in t"e organisation$ i.e.$ #ot" t"e #lue9collar wor%ers and w"ite9collar employees. >. !"e rules must #e uniformly enforced for t"eir proper acceptance. !"ey must #e applied fairly and impersonally. ,n ot"er words$ all defaulters s"ould #e treated ali%e$ depending upon t"e nature of t"eir offence and past record. Any discrimination or favoritism in t"is regard is li%ely to create discontent among t"e employees. 2urt"er$ t"ere s"ould #e a definite and precise provision for appeal and review of all disciplinary actions. ?. !"e rules of discipline em#odied in t"e standing orders$ or in t"e company8s manual$ must #e properly and carefully communicated to every employee prefera#ly at t"e time of induction for t"eir easy acceptance. ,t serves as a warning and a learning process and "elps to improve future #e"aviors of t"e employees in t"e enterprise. @. Every %ind of disciplinary penalty$ even if it is a re#u%e or a warning$ s"ould #e recorded. ,n some of t"e American industries t"ey "ave w"at is %nown as t"e Hpin% slip systemF. in% slips are issued as warning signals to a defaulting employee. A person w"o "as #een issued wit" a stated num#er of pin% slips will #e lia#le to #e laid9off or disc"arged$ and no ela#orate procedure "as to #e followed. A. !"e responsi#ility for maintaining employee discipline s"ould #e enirusted to a responsi#le person 3e.g. a line executive4$ t"roug" it is t"e personnel officer w"o s"ould #e given t"e responsi#ility of offering advice and assistance. !"e line executive s"ould issue only ver#al and written warnings. ,n serious matters$

w"ic" warrant suspension$ disc"arge etc.$ t"e industrial relations departments s"ould #e consulted. B. Disciplinary actions s"ould #e ta%en in private #ecause its main o#'ectives is to ensure t"at a wrong #e"aviour is corrected and not t"at t"e wrongdoer is punis"ed. ,f disciplinary actions are ta%en in t"e presence of ot"er employees$ it may offend t"e sense of dignity of t"e employee and impair "is social standing wit" "is colleagues. Similarly$ an immediate supervisor s"ould never #e disciplined in t"e presence of "is su#ordinates. ,f t"is "appens$ it would lower "is status and aut"ority$ and ma%e it difficult$ if not impossi#le$ for "im to discipline "is su#ordinates under certain circumstances. C. A punitive actions must satisfy t"e principle of natural 'ustice. !"e management must act wit"out #ias and wit"out vindictiveness$ and its disciplinary actions must #e #ased on 'ustice and fairplay. !"e punis"ment s"ould #e commensurate wit" t"e gravity of t"e offence. An individual is presumed to #e innocent until "e is proved to #e guilty. !"e #urden of proof is on t"e employer and not on t"e employee. 0""roaches to Disci"line 'nforcement !"e different approac"es to discipline include9 7uman -elations Approac" 7uman -esources Approac" Group Discipline Approac" !"e 1eaders"ip Approac" and

Under "uman relations approac"$ t"e employee is treated as "uman #eing and "is acts of indiscipline will #e dealt from t"e view point of "uman values$ aspirations$ pro#lems$ needs$ goals$ #e"aviors etc. ,n t"is approac" t"e employee is "elped to correct "is deviations. Under "uman resources approac"$ t"e employee is considered as Eresource8 as an asset to t"e organisation. !"is approac" analysis t"e cause of indiscipline from management activities suc" as defects in selections$ training$ motivations$ leaders"ip etc.$ after indentifying t"e defects$ corrective steps are carried out #y t"e management. Under group discipline approac"$ group as a w"ole$ sets t"e standard of disciplines and punis"ments for t"e deviations. ,n t"is approac"$ trade unions also act as agencies in maintaining discipline in wor% situation.

Under t"e leaders"ip approac"$ in disciplinary cases are dealt on t"e #asis of legislations and court decisions. !"e ,ndustrial Employment 3Standing 0rders4 Act$ :C>@ to a certain extent$ prescri#ed t"e correct procedure t"at s"ould #e followed #efore awarding punis"ment to an employee. &ode of Disci"line !"e 2ifteent" ,ndian 1a#our (onference discussed t"e )uestion of discipline in industry and lain down t"e following general principles. !"ere s"ould #e no loc%9out or stri%e wit"out notice. ;o unilateral action s"ould #e ta%en in connection wit" any industrial matter. !"ere s"ould #e no recourse to go9slow tactics. ;o deli#erate damage s"ould #e caused to plant or property. Acts of violence$ intimidation$ coercion or instigation s"ould not #e resorted to. !"e existing mac"inery for settlement of disputes s"ould #e utiliGed. Awards and agreements s"ould #e speedily implemented. Any agreement w"ic" distur#s cordial industrial relations s"ould #e avoided.

!"e (ode em#odies four parts. art , contains t"e duties and responsi#ilities of employees$ wor%ers and t"e government in maintaining discipline in industry. art ,, enlists t"e common o#ligations of management and unions. art ,,, deals wit" t"e o#ligations of management only$ w"ile art ,6 relates to t"ose of t"e unions only. ,n additions$ Annexure9A to t"e (ode em#odies t"e national level agreement on t"e criteria for t"e recognition of unions. A supplementary document contains t"e rig"ts of recogniGed unions and a model grievance procedure. !"us$ t"e (ode is "ig"ly compre"ensive and et"ical in its approac" to t"e industrial relations system. ,t "as #een reproduced #elow. ,art 8I: To maintain discipline in industry both in public and private sectors! !"ere "as to #e. 3i4 a 'ust recognition #y employers and wor%ers of t"e rig"ts and responsi#ilities of eit"er party$ as defined #y t"e laws and agreements 3including #ipartite and tripartite agreements arrived at all levels from time to time4I and ii4 a proper and willing disc"arge #y eit"er party of its o#ligation conse)uent on suc" recognition. ,art 8 II: To ensure better discipline in industry( management and union s! agree

t"at no unilateral actions s"ould #e ta%en in connection wit" any industrial matter and t"at disputes s"ould #e settled at appropriate levelI t"at t"e existing mac"inery for settlement of disputes s"ould #e utiliGed wit" t"e utmost expedition. t"at t"ere s"ould #e no stri%e or loc%9out wit"out noticeI t"at affirming t"eir fait" in democratic principles$ t"ey #ind t"emselves to settle all future differences$ disputes and grievances #y mutual negotiation$ conciliation and voluntary ar#itrationI t"at neit"er will "ave recourse to 3a4 coercion$ 3#4 intimidation$ 3c4 victimiGation$ and 3d4 go9s"owI t"at t"ey will avoid 3a4 litigation$ 3#4 sit9down and stay9in9stri%es$ and 3c4 loc%9 utsI t"at t"ey will promote constructive cooperation #etween t"eir representatives at all levels and as #etween wor%ers t"emselves and a#ide #y t"e spirit of agreements mutually entered intoI t"at t"ey will esta#lis" upon a mutually agreed #asis a Grievance rocedure w"ic" will ensure a speedy and full investigation leading to settlementI t"at t"ey will a#ide #y various stages in t"e Grievance rocedure and ta%e no ar#itrary action w"ic" would #y9pass t"is procedureI and t"at t"ey will educate t"e management personnel and wor%ers regarding t"eir o#ligations to eac" ot"er.

,art-III Management agrees not to increase wor%9loads unless agreed upon or settled ot"erwiseI not to support or encourage nay unfair la#our practice suc" as. 3a4 interference wit" t"e rig"t of employees to enroll or continue as union mem#ersI 3#4 discriminations$ restraint or coercion against any employee #ecause of recogniGed activity of trade unionsI and 3c4 victimiGation of any employee and a#use of aut"ority in any formI to ta%e prompt actions for 3a4 settlement of grievance$ and 3#4 implementation of settlements$ awards$ decisions and ordersI

to display in conspicuous places in t"e underta%ing t"e provision of t"is (ode in local language3s4I to distinguis" #etween actions 'ustifying immediate disc"arge and t"ose w"ere disc"arge must e preceded #y a warning$ reprimand$ suspension or some ot"er form of disciplinary action and to arrange t"at all suc" disciplinary action s"ould #e su#'ect to an appeal t"roug" normal Grievance rocedureI to ta%e appropriate disciplinary action against its officers and mem#ers in cases w"ere en)uiries reveal t"at t"ey were responsi#le for precipitate action #y wor%ers leading to indisciplineI and to recogniGe t"e unions in accordance wit" t"e criteria 3Annexure A given #elow4 evolved at t"e :@t" session of t"e ,ndian 1a#our (onference "eld in May$ :C?B.

,art-I9: Union s! agree not to encourage any form of p"ysical duressI not to permit demonstrations w"ic" are not peaceful and not to permit rowdyism in demonstrationI t"at t"eir mem#ers will not engage or cause ot"er employees to engage in any union activity during wor%ing "ours$ unless as provided for #y law$ agreement or practiceI to discourage unfair la#our practices suc" as. 3a4 negligence of duty$ 3#4 careless operation$ 3c4 damage to property$ 3d4 interference wit" or distur#ance to normal wor%$ and 3e4 insu#ordinationI to ta%e prompt actions to implement awards$ agreements$ settlements and decisionsI to display in conspicuous places in t"e union offices$ t"e provision of t"is (ode in t"e local language3s4I and to express disapproval and to ta%e appropriate action against office #earers and mem#ers for indulging in action against t"e spirit of t"is (ode.

!"e (ode does not "ave any legal section #ut t"e following moral sanctions are #e"ind it. :. !"e (entral Employers8 and Wor%ers8 0rganiGations s"all ta%e t"e following steps against t"eir constituent units guilty of #reac"es of (ode.

to as% t"e unit to explain t"e infringement of t"e (odeI to give notice to t"e unit to set rig"t t"e infringement wit"in a specific periodI to warn$ and in case persistent violation of t"e (odeI and not to give countenance$ in any manner$ to non9mem#ers w"o did not o#serve t"e (odeI and not to give countenance$ in any manner$ to non9mem#ers w"o did not o#serve t"e (ode.

<. Grave$ willful and persistent #reac"es of t"e (ode #y any party s"ould #e widely pu#liciGed. =. 2ailure to o#serve t"e (ode would entail derecognition normally for a period of one year9t"is period may #e increased or decreased #y t"e implementing (ommittee concerned. >. A dispute may not ordinarily #e referred for ad'udication if t"ere is a stri%e or loc%out wit"out proper notice or in #reac" of t"e code as determined #y an ,mplementation. !"e (ode of Discipline wor%ed well at t"e #eginning of its introduction and "ad a considera#le impact on t"e industrial relations scene. But$ "owever$ t"e impact of t"e (ode was not sustained over a long period of time due to several pro#lems in its application and implementation. !"e spirit of t"e (ode "as not #een im#i#ed #y t"e central organisations w"ic" were signatories to it. According to t"e ;ational (ommission on 1a#our$ t"e (ode "as "ad only limited success and was o#viously not t"e answer to t"e industrial relations pro#lems. !"e (ode #egan to rust and t"e parties were more eager to ta%e it offI t"ey developed an attitude of indifference. As regards t"e future of t"e (ode$ t"e (ommission was in favour of giving a legal form to its important provisions regarding recognition of unions$ grievance procedure$ unfair la#our practices$ and t"e li%e. Wit" t"e removal of t"ese provisions from t"e (ode to give t"em a statutory s"ape$ t"e (ode will "ave no useful function to perform. Discipline is a two9way traffic and a #reac" of discipline on t"e part of eit"er party in industry will cause unrest. !"e approac" to managing discipline depends to a great extent upon managerial p"ilosop"y$ culture and attitude towards t"e employees. A negative approac" to discipline relies "eavily on punitive measures and in t"e line wit" t"e traditional managerial attitude of H"ire and fireF and o#edience to orders. 0n t"e ot"er "and$ a constructive approac" stress on modifying for#idden #e"aviour #y ta%ing positive

steps li%e educating$ counseling etc.$ !"e concept of positive discipline promotion aims at t"e generation of a sense of self9discipline and disciplined #e"aviour in all t"e "uman #eings in a dynamic organiGational setting$ instead of discipline imposed #y force or punis"ment. ,n #rief$ t"e approac" to t"e disciplinary action in most cases s"ould #e corrective rat"er t"an punitive. Re,ie& 5'e$tion$ :. W"at are t"e causes of indisciplineL <. W"at are t"e principles of effective disciplineL =. State t"e principles of code of discipline.

UNIT I4
4+ 8+ 2+ -or$ers !artici"ation in Management &ollective 9argaining -age 0dministration and Industrial %elations

Less n 5 6 r7ers8 Parti!i'ati n in Mana,e&ent


Wor%ers participation in management is in essential ingredient of industrial democracy. !"e concept of wor%ers participation in management is #ased in H7uman -elationsF approac" to management w"ic" #roug"t a#out new set of values to la#our and management. !raditionally$ t"e concept of Wor%ers8 articipation in Management 3W M4 refers to participation of non9managerial employees in t"e decision9ma%ing process of t"e organisation. Wor%ers8 participation in management meets t"e psyc"ological needs of t"e wor%ers to a greater extent. !"at way it may also #e treated as t"e process of delegation of aut"ority in t"e general areas of managerial functions. According to one view$ wor%ers participation is #ased on t"e fundamental concept t"at t"e ordinary wor%er invest "is la#our in$ and ties "is fate to$ "is place of wor% and$ t"erefore$ "e "as a legitimate rig"t to "ave a s"are in influencing t"e various aspects of company policyF. !o )uote t"e version of Britis" ,nstitute of Management$ HWor%ers8 participation in management is t"e practice in w"ic" employees ta%e part in management decisions and it is #ased on t"e assumption of commonality of interest #etween employer and employee in furt"ering t"e long term prospects of t"e enterprise and t"ose wor%ing in itF. According to G.S. Walpole$ participation in management gives t"e wor%ers a sense of importance$ price and accomplis"mentI it given "im t"e freedom and t"e opportunity for self9expressionI a feeling of #elonging to "is place of wor% and a sense of wor%mans"ip and creativity. ,t provides for t"e integration of "is interest wit" t"ose of t"e management and ma%es "im a 'oint partner in t"e enterpriseF. Dr. Alexander considers a management to #e participative$ Hif it gives scope to t"e wor%ers to influence its decision ma%ing process on any level or sp"ere or if it s"ares wit" t"em some if its managerial prerogativesF. (legg says$ H,t implies a situation w"ere wor%ers representatives are$ to some extent$ involved in t"e process of management decision ma%ing$ #ut w"ere t"e ultimate power is in t"e "ands of t"e managementF.

According to Dr. Davis$ Hit is a mental and emotional involvement of a person in a group situation w"ic" encourages "im to contri#ute to goals and s"are responsi#ilities in t"emF. According to Dr. Davis$ Hit is a mental and emotional involvement of a person in a group situation w"ic" encourages "im to contri#ute to goals and s"are responsi#ilities in t"emF. ,n s"ould #e #orne in mid t"at w"en individuals are provided wit" opportunities for expression and s"are in decision9ma%ing$ t"ey s"ow muc" initiative and accept responsi#ility su#stantially. !"e rationale of wor%ers8 participation in management lies in t"at it "elps in creation amongst t"e wor%ers a sense of involvement in t"eir organisation$ a #etter understanding of t"eir role in t"e smoot" functioning of industry and provides t"em a means of self9realiGation$ t"ere#y$ promoting efficiency and increased productivity. !"us t"e concept wor%ers8 participation in management encompasses t"e following. ,t provides scope for employees in t"e decision ma%ing of t"e organisation. !"e participation may #e at t"e s"op level$ departmental level or at t"e top level. !"e participation includes t"e willingness to s"are t"e responsi#ility #y wor%s as t"ey "ave a commitment to execute t"eir decisions. !"e participation is conducted t"roug" t"e mec"anism of forums w"ic" provide for association of wor%ers representatives. !"e #asic idea is to develop self control and self discipline among wor%s$ so t"at t"e management #ecome HAuto ManagementF.

0#'ectives !"e sc"eme "as economic$ psyc"ological$ et"ical and political o#'ectives. ,ts psyc"ological o#'ective of t"e sc"eme is to secure full recognition of t"e wor%ers. Association of wor%er wit" management provides "im wit" a sense of importance$ involvement and a feeling of #elongingness. 7e considers "imself to #e an indispensa#le constituent of t"e organisation. Socially$ t"e need for participation arises #ecause modern industry is a social institution wit" t"e interest of employer$ t"e s"are9"olders$ t"e community and t"e wor%ers e)ually invested in it. !"e et"ical o#'ective of participation is to develop wor%ers free personality and to recogniGe "uman dignity.

!"e political o#'ective of participation is to develop wor%ers conscious of t"eir democratic rig"ts on t"eir wor% place and t"us #ring a#out industrial democracy.

Le,e $ o) *artici-ation Wor%ers8 participation is possi#le at all levels of managementI t"e only difference is t"at of degree and nature of application. 2or instance$ it may #e vigorous at lower level and faint at top level. Broadly spea%ing t"ere is following five levels of participation. :. Information participation: ,t ensures t"at employees are a#le to receive information and express t"eir views pertaining to t"e matters of general economic importance. <. Consultative participation: 7ere wor%s are consulted on t"e matters of employee welfare suc" as wor%$ safety and "ealt". 7owever$ final decision always rests at t"e option of management and employees8 views are only of advisory nature. =. Associative participation: ,t is extension of consultative participation as management "ere is under moral o#ligation to accept and implement t"e unanimous decisions of employees. >. Administrative participation: ,t ensure greater s"are of wor%s in disc"arge of managerial functions. 7ere$ decision already ta%en #y t"e management come to employees$ prefera#ly wit" alternatives for administration and employees "ave to select t"e #est from t"ose for implementation. ?. 5ecisive participation: 7ig"est level of participation w"ere decisions are 'ointly ta%en on t"e matters relation to production$ welfare etc. is called decisive participation. Forms of -or$ers. !artici"ation in Management !"e forms of wor%ers participation in management vary from industry to industry and country to country depending upon t"e political system$ pattern of management relations and su#'ect or area of participation. !"e forms of wor%ers participation may #e as follows. :. 5oint (onsultation Model <. 5oint Decision Model =. Self Management$ or Auto Management Sc"eme >. Wor%ers -epresentation on Board

:. :oint consultation model: ,n 'oint consultation model t"e management consults wit" t"e wor%ers #efore ta%ing decisions. !"e wor%ers represent t"eir view t"roug" E5oint consultative (ommittees8. !"is form is followed in U.+.$ Sweden and oland. <. :oint decision model: ,n t"is form #ot" t"e wor%ers and management 'ointly decide and execute t"e decisions. !"is form of participation is followed in U.S.A. and West Germany. =. %elf management of auto management: ,n t"is model$ t"e entire control is in t"e "ands of wor%ers. &ugoslavia is an example to t"is model. W"ere t"e state industrial units are run #y t"e wor%ers under a sc"eme called ESelf Management or Auto Management Sc"eme8. >. +orkers; representation on board: Under t"is met"od$ t"e wor%ers elect t"eir representative and send t"em to t"e Board to participate in t"e decision ma%ing process. !"e participation of wor%ers may #e formal or informal. ,n t"e formal participation$ it ta%es t"e forms of formal structures suc" as Wor%s (ommittee$ S"op (ouncils$ roduction (ommittee$ Safety (ommittee$ 5oint Management (ouncils$ (anteen (ommittee etc. !"e informal participation may #e suc" as t"e supervisor consulting t"e wor%ers for granting leave$ overtime$ and allotment of wor%ed or transfer of wor%ers from one department to anot"er. -or$ers. !artici"ation in Management in India Wor%ers participation in management in ,ndia was given importance only after independence. ,ndustrial Disputes Act of :C>A was t"e first step in t"is direction$ w"ic" recommended for t"e setting up of Wor%s (ommittees. !"e 5oint Management (ouncils were esta#lis"ed in :C?D w"ic" increased t"e participation of la#our in management. !"e management sc"eme$ :CAD gave #irt" to EBoard of Management8. Since 5uly :CA?$ t"e two9tire participation model called ES"op (ouncil8 at t"e s"op level and E5oint (ouncils8 at t"e enterprise level were introduced. Based on t"e review and performance of previous sc"emes a new sc"eme was formulated in :CB=. !"e new sc"eme of wor%ers participation was applica#le to all central pu#lic sector enterprises$ except t"ose specifically exempted. !"e sc"eme wit" e)ual num#er of representatives will operate #ot" at s"op as well as plant level. !"e various functions of participative forum laid down in t"e sc"eme could #e modified wit" t"e consent of parties. !"e sc"eme could not ma%e suc" "ead way due to lac% of union leaders consensus of t"e mode of representation and wor%ers8 tendency to discuss ultra9vires issues e.g. pay scales$ wages etc.

rior to W M Bill$ :CCD all t"e sc"emes of participation were non9statutory and concentrated on particular levels. 2or effective and meaningful participation at all levels$ a #ill was introduced in arliament on <?t" May$ :CCD. !"e #ill provide for effective participation at all level #y formulating sc"emes of participation. 2or electing representatives for participation it also provides for secret #allot. !"e appropriate government may also appoint inspectors to review participation sc"emes and t"e #ill also "as provision of punis"ment for t"ose w"o contravene any of t"e provision of t"e Act. !"us t"e wor%ers8 participation sc"emes in ,ndia provide wide scope for application and upliftment of wor%ers. But in practice$ t"ese sc"emes "ave not met wit" success t"oug" t"ey are successful in some private sector units. !"e factors responsi#le for t"e failure are. Attitude of t"e management towards t"e sc"eme is not encouraging. !"e preventatives of wor%ers are not given due recognition #y t"e management. !"e attitude of trade unions towards t"e sc"emes is negative as t"ey consider t"ese sc"emes are reducing t"e power of !rade Unions. Some !rade Unions #oycott 5oint Management (ouncil meetings. !"e success t"ese sc"emes re)uire certain conditions. Management s"ould appreciate t"e sc"eme and accept t"em in full fait". !rade unions "ave to cooperate wit" t"e sc"emes. Wor%ers "ave to #e educated.

!"us wor%ers8 participation in management in ,ndia "as yet to succeed. ,t can #e done #y educating t"e wor%ers$ creating an environment in t"e organisatoin for coordination of wor%ers and management. Re*ie9 :uesti ns :. W"at do you understand #y t"e concept of wor%ers8 participation in managementL W"at are its o#'ectivesL <. W"at are t"e different forms of wor%ers8 participation in managementL =. Discuss t"e concept of wor%ers8 participation in management in t"e ,ndian context.

Less n ; % lle!ti*e Bar,ainin,


,n t"e wor% situation$ an individual wor%er "as to face many pro#lems suc" as$ low wages$ long "ours of wor%$ loss incentive etc. !"ese pro#lems of an individual or few individuals cannot attract t"e attention of t"e employer #ecause of t"eir less #argaining power. !"e growt" of trade union increased t"e #argaining strengt" of wor%ers and ena#les t"em to #argain for t"eir #etter conditions collectively. (ollective #argaining is a source of solving t"e pro#lems of employees in t"e wor% situation collectively. ,t provides a good climate for discussing t"e pro#lems of wor%ers wit" t"eir employers. !"e employees put t"eir demands #efore t"e employers and t"e employers also give certain concession to t"em. !"us it ensures t"at t"e management cannot ta%e unilateral decision concerning t"e wor% ignoring t"e wor%ers. ,t also "elps t"e wor%ers to ac"ieve responsi#le wages$ wor%ing conditions$ wor%ing "ours$ fringe #enefits etc. ,t provides t"em a collective strengt" to #argain wit" employer. ,t also provides t"e employers some control over t"e employees. !"e process of collective #argaining is #ipartite in nature$ i.e. t"e negotiations are #etween t"e employers and employees wit"out a t"ird party8s intervention. !"us collective #argaining serves to #ridge t"e emotional and p"ysiological gulf #etween t"e wor%ers and employers t"oug" direct discussions. Meaning !"e term collective #argaining is made up of two words$ Ecollective8 / w"ic" means a Egroup action8 t"roug" representation and E#argaining8$ means Enegotiating8$ w"ic" involves proposals and counter9proposals$ offers and counter9offers. !"us it means collective negotiations #etween t"e employer and t"e employee$ relating to t"eir wor% situations. !"e success of t"ese negotiations depends upon mutual understanding and give and ta%e principles #etween t"e employers and employees. Definitions (ollective #argaining "as different meanings for different individuals or groups. !rade Unions$ management and pu#lic interpret t"e term in t"eir own ways. 1et us now discuss some leading definitions. According to t"e Encyclopedia of social sciences$ H(ollective #argaining is a process of discussion and negotiation #etween two parties$ one or #ot" of w"om is a group of

persons acting in concert. !"e resulting #argain is an understanding as to t"e terms and conditions w"ic" a continuing service is to #e performed. More specifically$ collective #argaining is a procedure$ #y w"ic" employer and a group of employees agree upon t"e conditions of wor%F. -ic"ardson says$ H(ollective #argaining ta%es place w"en a num#er of wor% people enter into negotiation as a #argaining unit wit" an employer or a group of employers wit" t"e o#'ect of reac"ing agreement on conditions of t"e employment of t"e wor% peopleF. !"e ,.1.0. wor%ers manual defines collective #argaining as$ Hnegotiation a#out wor%ing conditions and terms of employment #etween an employer$ a group of employers or one or more employer8s organiGations$ on t"e one "and$ and one or more representative wor%ers organisation on t"e ot"er wit" a view of reac"ing an agreement. #alient Features ,t is a collective process in w"ic" representatives of employers and employees participate mutually. ,t is a flexi#le and dynamic process w"erein no party adopt a rigid attitude. ,t is a #ipartite process w"ereas t"e representatives of wor%ers and management get an opportunity for clear and face to face negotiation. ,t is a continuous process w"ic" can esta#lis" regular and sta#le relations"ip #etween wor%er8s organisatoin and management. ,t is a practical way to esta#lis" an industrial democracy. ,t is a good met"od of promoting industrial 'urisprudence. ,t is good form of interdisciplinary system 3i.e. a function em#odying economic psyc"ological$ administrative$ et"ical and ot"er aspects.4 ,t is a process t"at includes efforts from preliminary preparations to t"e presentation of conflicting view points$ collection of necessary facts$ understanding of view points$ ta%ing correct decisions etc.

Im"ortance W"atever la#our laws may lay down$ it is t"e approac" of employers and trade unions w"ic" matters and unless #ot" are enlig"tened$ industrial "armony is not possi#le. !"erefore$ t"e solution to common pro#lems can #e found directly t"roug" negotiation #etween #ot" parties and in t"is context t"e scope of collective #argaining is very great.

(ollective #argaining is really #eneficial forms t"e stand part of employees and t"eir unions as well as management. ,f it wor%s well$ it develops a sense of self9responsi#ility and self9respect among t"e employees concerned and t"us significantly paves t"e way for improved employee morale and productivity. (ollective #argaining restricts management8s freedom for ar#itrary action and t"ere#y management learns a new code of #e"aviour #y conceiving of t"e union as a met"od of dealing wit" employees. !"e management also comes to %now t"e grievances of wor%ers in advance and it gives an opportunity to ta%e precautionary measure. Moreover$ collective #argaining opens u t"e c"annel of communication #etween top and #ottom levels of an organiGation. 2rom t"e point of t"e view of t"e society$ collective #argainingI if property conducted$ result in t"e esta#lis"ment of a "armonious industrial climate w"ic" "elps for t"e socio9 economic development of t"e nation. ,t #uilds up a system of industrial 'urisprudence #y introducing civil rig"ts in industry and ensures t"at management is conduct #y rules rat"er t"an #y a ar#itrary decisions. ,t extends t"e democratic principles from t"e political to industrial field. Functions rof. Butler "as viewed t"e functions as. a process of social c"ange a peace treaty #etween two parties a system of industrial 'urisprudence

% lle!ti*e #ar,ainin, as a 'r !ess 3 s !ial !$an,e (ollective #argaining en"ances t"e status of t"e wor%ing class in t"e society. Wage earners "ave en"anced t"eir social and economic position in relation to ot"er groups. Employers "ave also retained "ig" power and dignity t"roug" collective #argaining. % lle!ti*e #ar,ainin, as a 'ea!e treat. (ollective #argaining serves as a peace treat #etween t"e employers and employees. 7owever t"e settlement #etween t"e two parties is a compromise. % lle!ti*e #ar,ainin, as an industrial 2uris'ruden!e (ollective #argaining creates a system of H,ndustrial 5urisprudenceF. ,t is a met"od of introducing civil rig"ts into industry. ,t esta#lis"es rules w"ic" define and restrict t"e

traditional aut"ority exercised #y employers over t"eir employees placing part of t"e aut"ority under 'oint control of union and management. ,n addition to t"e a#ove$ its functions include. ,ncreasing t"e economic strengt" to employers and employers. ,mproving wor%ing conditions and fair wages. Maintaining peace in industry rompt and fair redressel of grievances. romoting sta#ility and prosperity of t"e industry.

!rinci"les of &ollective 9argaining !"e success of collective #argaining is #ased on certain principles. !"ese principles are to #e followed #y t"e employers and unions. rof. Arnold. 2. (ampo "as laid down certain principles for union and management$ for management and for union. < r # t$ uni n and &ana,e&ent :. (ollective #argaining process s"ould give due consideration to "ear t"e pro#lems on #ot" sides. !"is will develop mutual understanding of a pro#lem w"ic" is more important for arriving at t"e solutions. <. Bot" t"e management and union s"ould analyGe t"e alternatives to arrive at t"e #est solution. =. !"ere must #e mutual respect on #ot" t"e parties. !"e management s"ould respect t"e unions and t"e unions s"ould recogniGe t"e importance of management. >. Bot" t"e union and management must "ave good fait" and confidence in discussion and arriving at a solution. ?. (ollective #argaining re)uired effective leaders"ip on #ot" sides$ on t"e union side and management side to moderate discussions and create confidence. @. ,n collective #argaining #ot" t"e union and management s"ould o#serve t"e laws and regulations in practice in arriving at a solution. A. ,n all negotiations$ t"e la#our s"ould #e given due consideration / in wage fixation$ in wor%ing conditions$ #onus etc. < r &ana,e&ent

:. Management s"ould t"in% of realistic principles and policies for la#our regulations. <. !"e recognitions of a trade union to represent t"e pro#lems is more essential. ,f t"ere are more t"an one union$ t"e management can recogniGe on w"ic" is "aving t"e support of ma'ority of wor%ers. =. Management s"ould follow a policy of goodwill$ and cooperation in collective #argaining rat"er t"an an indifferent attitude towards t"e union. >. Managements need not wait for trade union to represent t"eir grievances for settlement. Management can voluntarily ta%e measures to settle t"e grievances. ?. Managements s"ould give due consideration to social and economic conditions of wor%ers in collective #argaining. < r uni ns :. Unions s"ould avoid undemocratic practices. <. Unions "ave to recogniGe t"eir duties to t"e management also #efore emp"asiGing t"eir demands. =. Unions "ave to consider t"e #enefits to all wor%ers rat"er t"an a section of wor%ers. >. Stri%e loc%9outs s"ould #e resorted to$ only as a last measure. As far as possi#le t"ey "ave to #e avoided #y compromise and discussion. Forms of &ollective 9argaining !"e forms of collective #argaining differ from country to country and time to time in ,ndia. (ollective #argaining ta%es t"e following forms. :. %ettlements under industrial disputes act. According to t"is$ negotiations are carried out #y officers according to t"e ,ndustrial Disputes Act. <. %ettlements by parties. ,n t"is case settlements are arrived at #y parties t"emselves wit"out t"e interference of a t"ird party. =. Consent awards. 7ere t"e agreements are negotiated #y t"e parties on a voluntary #asis w"en disputes are su#'udiced. 1ater t"ese are su#mitted to t"e la#our courts. >. 5irect negotiation. ,n t"is agreements are arrived at #y #ot" t"e parties after direct negation. !"e enforcement of t"ese agreements depends upon t"e goodwill and cooperation of t"e parties.

0n t"e #asis of t"e level 3in w"ic" collective #argaining ta%es place4 it can #e classified as. :. lant level #argaining

<. ,ndustry level #argaining =. ;ational level #argaining Plant le*el #ar,ainin, ,t is t"e micro level #argaining. ,t ta%es place in t"e particular unit #etween t"e management and t"e trade unions of t"at unit. Industr. le*el #ar,ainin, Several unions of t"e same industry form and association and negotiate wit" t"e employers. Nati nal le*el #ar,ainin, ,n t"is$ t"e representatives of trade unions and employers at t"e national level will negotiate.

The &ontents of &ollective 9argaining 0greements !"e scope of collective #argaining "as increased during t"e recent years. rof. -andle o#serves t"at t"e increase in t"e scope of collective #argaining is due to t"e growt" of trade unions$ increased response #y t"e managements$ increased response #y t"e managements$ increased prices and t"e legislations. ro#lems relating to security of trade unions$ wages$ promotions$ transfers$ "ours and conditions or wor%$ "olidays and leave wit" wages$ safety and "ealt" etc. are included in t"e collective #argaining. !"e ,nstitute of ersonal Management includes t"e following in a collective agreement. ;ature$ scope$ definition and purpose of agreement. -ig"ts and responsi#ilities of management and trade unions. Wages$ #onus$ production norms$ leave$ retirements #enefits and ot"er #enefits and terms and conditions of service.

Grievance redressal procedure. Met"ods and mac"inery for t"e settlements of possi#le future$ disputes$ and A termination clause

!"us collective #argaining includes not only t"e negotiation of wages$ #ut also wor%ing condition$ la#our welfare and organiGational matters. !rocess of &ollective 9argaining !"e process of collective #argaining consists of two stages$ 3i4 t"e negotiation state$ and 3ii4 t"e contract administration. Ne, tiati n Sta,e At t"e negotiation stage certain proposals are put forward for mutual agreement after careful consideration. !"e negotiation stage consists of t"ree steps. reparation for negotiation ;egotiation procedure 2ollow up action

,reparation for negotiation 2irst t"e union will su#mit t"eir fres" contract to t"e management #efore t"e expiry of existing contract 3usually =D to @D days #efore t"e expiry4. Bot" t"e management and unions will ta%e considera#le time to t"e preparation and negotiation. !"ey collect t"e re)uired data relating to large num#er of issues suc" as wage$ salary$ seniority$ overtime allowance$ t"e cost of living$ t"e policies of trade unions and management$ nature of agreement in ot"er companies etc. !"e company will collect suc" information its internal sources / suc" as #alance s"eet$ contract agreements$ mar%et researc" reports$ Govt. reports etc. !"e trade union also collects suc" data from t"eir own central organisation$ researc" staff from various Department etc. !"e personal department prepares a personal$ w"ic" includes / Specific proposals of t"e company including t"e o#'ectives of negotiation. Estimating t"e cost of implementing t"e proposals.

(lassifying t"e demands as demands accepta#le #efore negotiation$ demands accepta#le after negotiation$ demands w"ic" cannot #e accepted. Suc" proposals are #ased on company8s commitment to s"are"olders$ consumers$ wor%ers and pu#lic.

"egotiation techni<ue or procedure ,n t"is step$ a negotiation committee is to #e formed #y #ot" t"e parties. 2rom t"e management side t"e representative include t"e c"ief executives. !"e unions is represented #y t"e leaders and centrals leaders. !"e committee consists of t"ree to six mem#ers. !"e demands are classified as demands w"ic" need #argaining and demands w"ic" may #e re'ected. During negotiations$ normally t"e easier demands are ta%en up first. Bot" parties s"ould "ave a H#argaining cus"ionF$ and ma%e counter proposals. 2or example$ a demand for wage increase #y t"e union$ may #e accompanied #y a counter proposal for increase in production #y t"e management. Suc" negotiations go on till t"e Hpoint of no returnF is #eing reac"ed. A rigid or irrevoca#le stance s"ould always #e avoided. 'ollow-up action At t"is stage$ t"e agreement is printed and circulated among all t"e employees. !"e supervisors will #e enlig"tened a#out t"e agreements for t"eir effective implementation. &ontract 0dministration Agreement will #e useful if t"ey are executed properly. As o#served #y rofs. ,lliamson and 7arries$ Hif anyt"ing is more important to industrial relations t"an t"e contract itself$ it is t"e administration of t"e contractF. rof. (ampo "as laid down t"e following general principles for administering t"e contact effectivelyI (ooperation #etween #ot" t"e parties is essential. Bot" t"e parties s"ould "ave a tolerant attitude towards eac" ot"er and "ave a spirit of accommodation and goodwill. roper procedure s"ould #e adopted for t"e redressal of grievances #y providing opportunity to exc"ange views. W"en a conference over t"e redressal of grievance reac"es an impasse$ t"e grievance s"ould #e referred to ar#itration. Bot" t"e parties s"ould "onour t"e commitment.

!re)re*uisite for #uccessful &ollective 9argaining (ollective #argaining will #e more effective under t"e following conditions. Ne, tiatin, tea& ;egotiating team s"ould represent all groups including production$ finance and industrial relations experts. !"e team s"ould #e "eaded #y an appropriate person wit" ade)uate aut"ority to ta%e decisions. Re! ,niti n 3 uni ns !"e management s"ould recogniGe t"e trade union and analyGe t"e facts in t"eir representation of grievances. Mutual understanding encourages mutual agreement. O'en &ind Bot" t"e management and union s"ould "ave open minds to listen and appreciate eac" ot"ers point of view wit" flexi#ility and ad'ustment. =+ &e 6 r78 n de&ands !"e union and management "ave to collect relevant data relating wages$ conditions of wor%$ welfare sc"emes$ cost of #enefits. R utine 'r #le&s !"e management and unions "ave to identify t"e grievances on routine #asis and ta%e appropriate action t"en and t"ere. Internal uni n de& !ra!. !rade unions s"ould encourage internal union democracy #y consulting t"e ran% and file mem#ers. I&' rtan!e t ut'ut

!rade unions s"ould also give importance to output$ )uality of t"e products$ company8s image etc.$ in addition to t"eir wages$ #onus$ wor%ing conditions etc. Stri7es> l !7 uts Stri%es and loc%outs s"ould #e resorted to as last measure. Before ta%ing any decision$ #ot" t"e union and management s"ould conduct periodic discussions to avoid stri%es and loc%outs.

(ollective #argaining "as gradually #een ta%ing roots in ,ndian soil. Most of t"e collective #argaining agreements were concluded at plant level. Some industry level agreements were also concluded in textile industries in Bom#ay and A"emada#ad. !"e scope is widening. ,t includes matters relating to productivity$ #onus$ moderniGation$ standing orders$ voluntary ar#itration$ incentive sc"emes and 'o# evaluation etc. !"e num#er of agreement "as #een increasing. Most of t"e agreements were relating to wages. ,n a study conducted #y E.2.,. s"ows t"at out of :DC agreements C@ were relating towages. !"us collective #argaining is an important met"od of solving pro#lems$ t"oroug" mutual understanding. ,f used properly it can solve t"e pro#lems of #ot" t"e parties9 management and union t"roug" mutual confidence. (ollective #argaining is also used as a tool for #ringing coordination #etween wor%ers and managements. ,t also serves as tool of communication of views #y #ot" management and wor%s. ,n t"e long9run it will serve as an instrument for la#our participation in management and pave way for "e cordial industrial relations in ,ndia. Co ecti,e %ar!ainin! in centra -'% ic $ector 'n(ertakin!$ (ollective #argaining in central pu#lic sector underta%ings is done according to t"e guidelines issued #y t"e Departments of u#lic Enterprises 3earlier %nown as t"e Bureau of u#lic Enterprises4. !"is department gives t"e content and limits of financial commitments w"ic" a pu#lic enterpriser can ma%e wit" t"e union during t"e course of #argaining. 7owever$ in many instances t"ese> limits are circumvented #y t"e management #y ma%ing gentleman8s promises wit" t"e unions on several issues outside t"e written agreement and implementing t"ese promises over a period t"roug" administrative orders. ,n core industries li%e steel$ ports and doc%s and #an%s$ collective #argaining is done at t"e national level for t"e industry as a w"ole. !"us$ in steel industry$ one main collective agreement is entered into #y t"e ;ational 5oint (onsultative 2orum on #e"alf of all private and pu#lic sector steel units wit" ot"er unions. !"is is followed #y several supplementary agreements #eing entered into at t"e plant level to cover aspects not resulted in creating uniform wage structures and fringe #enefit patterns in all pu#lic sector units irrespective of t"e nature of industry 3la#our or capital intensive4 and t"e paying capacity of a unit as determined #y its financial performance. !"is is in s"arp contrast to a private sector unit w"ere its wages and fringe #enefits are more geared to its specific re)uirements and circumstances.

%eview 6uestions :. W"at do you understand #y Hcollective #argainingFL W"at is its scopeL <. Enumerate t"e principles of collective #argaining. =. W"at are t"e pre9re)uisites for successful collective #argainingL

Less n ? 6a,e Ad&inistrati n and Industrial Relati n


Wage is remuneration to la#our for t"e wor% done or "e service rendered #y it to t"e employees. Wage payment if t"e most vital and important pro#lem t"at an industrial wor%ers is confronted wit" ,t is also one of t"e most difficult areas in our present industrial relations system. !"e wages constitute t"e earning for t"e wor%men$ w"ic"$ in turn$ determine "is standard of living and t"at of "is family. !"ey also determine t"e standard of "is efficiency and conse)uently$ t"e level of productivity. Wage administration is also important to t"e employer as it constitutes one of t"e principal Bitems t"at enter into t"e cost of production of "is product. !"e government and t"e community at large are also vitally concerned wit" t"e pro#lem #ecause of a large num#er of industrial disputes center round t"e )uestions of wages and allowances. !"erefore$ evolution of a suita#le wage structure and wage fixing mac"inery is important for t"e prosperity of industry$ for t"e well9#eing of la#our$ and for t"e economic development of t"e country. 7owever t"e pro#lem of wage fixation in a modern democratic society is #y for t"e most difficult of all employer9employee relations"ip. !"e concerned parties$ namely$ t"e employers$ t"e wor%s and t"e consumers "ave seemingly conflicting interests. A delicate #alance "as to #e struc% #etween wages paid to t"e wor%ers$ t"e profits passed on to t"e s"are"olders$ and t"e services rendered to t"e community. ,t cannot also #e considered in isolation from t"e larger economic and social #ac%ground prevailing in t"e country. -age !olic !"e term Ewage policy8 refers to legislation or government action underta%en to regulate t"e level or structure of wages$ or #ot" for t"e purpose of ac"ieving specific o#'ectives of social and economic policy. !"e social o#'ectives of wage policy may aim at eliminating t"e exceptionally low wages$ t"e esta#lis"ing of fair standards$ t"e protection of wage earners from t"e impact of inflationary tendenciesI and at increasing t"e economic welfare of t"e community as a w"ole. H!"e social and economic aspects of wage policy are normally inter9relatedI measures inspired #y social considerations inevita#ly "ave economic effects and action designed to ac"ieve specific economic results "as social implications. W"en t"e social and economic implication of measures of wage9policy conflict$ a c"oice "as to #e madeF. A wage policy may #e viewed from t"ree different angels. At t"e macro economic level$ t"e pro#lem is t"at of resolving t"e conflict #etween t"e o#'ectives of an immediate rise in t"e standard of living of wor%ers$ additional employment and capital formation. At t"e

semi9aggregative level$ t"e pro#lem is t"at of evolving a wage structure w"ic" is conducive to economic development. At t"e plant level$ t"e pro#lem is t"at of a system w"ic" provides incentives to increasing productivity and improving t"e )uality of wor%ers. Ob5ectives of a -age !olic !"e ,10 pu#lication "as enumerated t"e following o#'ectives of a wage policy in developing countries. !o a#olis" malpractices and a#uses in wage payment. !o set minimum wages for wor%ers w"ose #argaining position is wea% #ecause t"ey are unorganiGed or inefficiently organiGed$ accompanied #y separate measures to promote t"e growt" of trade unions and collective #argaining. !o o#tain for t"e wor%ers a 'ust s"are in t"e fruits of economic development$ supplemented #y appropriate measures to %eep wor%ers8 expenditure on consumption goods in step wit" availa#le supplies so as to minimiGe inflationary pressureI and !o #ring a#out a more efficient allocation and utiliGation of manpower t"roug" wage differentials and w"ere appropriate$ systems of payment #y results.

,n ,ndia$ t"e o#'ectives of a national wage policy may #e stated t"us. !o provide minimum wages to wor%ers employed in sweated industries !o fix wage ceilings !o improve t"e existing wage9structure !o control inflationary tendencies !o accelerate export promotion and 0t"er o#'ectives.

Pr *isi n 3 &ini&u& 9a,es in s9eated industries ,n a country li%e ,ndia$ w"ere la#ourers are exploited in t"e sweated industries$ t"e #asic need is to provide for Hsafety netF wages to prevent its exploitation. According to !urner$ H!"e protection of wor%ers against exploitation or unduly low wages remains wager

policy8s ma'or pre9occupation for t"e under9developed areasF. !"e fixing of minimum wage is also necessary to #oost up industrial employment$ partly to smoot" t"e flow of la#our from t"e farm to expanding modern industriesI and partly to cover t"e differentials in wage rates so t"at wages paid to employees doing identical wor% are rationaliGed. !"us$ t"e wage policy s"ould aim at a minimum wage in sweated occupation as well as a floor for entry to industrial employment.

<i@ati n 3 9a,e !eilin,s (eilings on wages need #e fixed to save employees from t"e pinc" of inflationary tendency t"at follow from uncontrolled price movement. !"e wor%ers s"ould get a 'ust s"are in t"e fruits of economic development and increased productivity. roductivity and efficiency can #e #oosted #y giving incentives to t"em and #y improving t"e investment capacity of industries #y plaug"ing #ac% a part of t"e profit in t"e industry. I&'r *e&ent in e@istin, 9a,e stru!ture Desira#le or rational wage structure facilitates t"e ac)uisition of productive s%ills$ serves as an incentive to "ig"er productivity and wage income$ and encourages t"e allocation of la#our to t"e expanding sectors of economy in w"ic" la#our is in great demand. 5ustice and fairness demand t"at a sound relations"ip s"ould exist #etween rates of ay for different groups in similar occupations. !"e 'o#s w"ic" demand a "ig"er degree of s%ill$ training$ experience$ responsi#ility$ mental and p"ysical effort and "aGards s"ould #e paid more t"an t"ose "aving lower re)uirement. According to (lar% +err$ Himproving wor%er efficiency and performance$ encouraging t"e ac)uisition of s%ills and providing and incentive of la#our mo#ility s"ould #e t"e real purpose of a wage policy in a developing economyF. % ntr l *er in3lati nar. tenden!ies (ontrolling inflationary pressures s"ould #e an essential element of wage policy$ for increasing prices erode wor%ers8 real income and lower down t"eir standard of living and ultimately cause industrial unrest. !"e wage policy s"ould$ t"erefore$ aim at sta#iliGing prices #y tying wage increases to productivity. A!!elerati n 3 e@' rt 'r & ti n

!o get imports of essential capital goods$ tec"nical %now9"ow$ trained manpower and raw materials$ foreign exc"ange need #e earned #y promoting exports t"roug" increased productivity of exporta#le goods and price sta#ility or price reduction w"erever possi#le. A wage policy s"ould "elp to accelerate a nations8 development process. Ot$er #2e!ti*es !o #ring social 'ustice to wor%ers and e)ual opportunities of personal development t"roug" t"e development of socialistic pattern of societyI as provided #y t"e Directive rinciples of t"e State olicy in t"e (onstitution. !o maintain industrial peace$ w"ic" cannot #e ac"ieved only t"roug" statutory measures and #an on stri%es and loc%outs and compulsory ar#itration !o provide guidance to various aut"orities c"arged wit" t"e tas% of wage fixation and revision. !o develop t"e s%ill of newly recruited industrial la#our and ot"er manpower resources.

Dr. Giri "as said$ H A national wage policy must aim at esta#lis"ing wages at t"e "ig"est possi#le level$ w"ic" t"e economic conditions of t"e country as a w"ole resulting from economic developmentF. !"us$ it may #e said t"at Ht"e protection of wor%ers against exploitation or unduly low wags$ improving wor%ers8 efficiency and performance$ encouraging ac)uisition of stri%es$ providing and incentive to la#our mo#ility$ sta#iliGing prices and acceleration of t"e nation8s development process s"ould #e t"e real purpose and t"e need for a national wage policy.F ,t may #e o#served t"at no serious attempt "as so far #een made at t"e level$ for formulating a national wage policyI and t"ere does not appear to #e a formally proclaimed wage policy in ,ndia. -age %egulation Machiner ,n unorganiGed industries$ wages are fixed and revised under t"e Minimum Wages Act$ :C>B. But for ot"er industrial wor%ers$ t"ey are fixed #y several well9esta#lis"ed procedures or practices availa#le for wage9fixation and wage revision. !"ese are settlements in conciliation of wage disputes$ collective #argaining at t"e plant level$ #ipartite wage revision committees in several industries$ ad'udication$ and ar#itration. 1ately$ Wage Boards "ave also #een created. -age 9oard

Wage Board is a tripartite #ody$ "aving representation of t"e employers and la#our #esides$ independent mem#ers. !"e representatives of t"e former two interests are nominated #y t"eir central organisatoinsI ot"ers are nominated #y t"e Government. ,t is an important mac"inery of State regulation of wages. )r 9t$ and de*el '&ent After independence$ t"e ,ndustrial Disputes Act was enacted under w"ic" disputed regarding wages could #e settled t"roug" ad'udication. But t"e parties were not satisfied wit" t"is system. !"e idea of setting up of tripartite Wage Boards was$ t"erefore$ mooted and endorsed in t"e 2irst lan. But no action was ta%en during t"at lan period. 7owever$ t"e Second lan emp"asiGed t"e need to determine wages t"roug" industrial wage #oards. ,t o#served$ Ht"e existing mac"inery for settlement of wage disputes "as not given full satisfaction to t"e parties concerned. A more accepta#le mac"inery for settling wage disputes will #e one w"ic" gives "e parties t"emselves a more responsi#le role in reac"ing decisions. An aut"ority li%e a tripartite Wage Board$ consisting of e)ual representative of employers and wor%ers and an independent c"airman will pro#a#ly ensure more accepta#le decisions. Suc" wage #oards s"ould #e instituted for individual industries in different areasF. !"is recommendation was su#se)uently reiterated #y t"e :? t" ,ndian 1a#our (onference in :C?A and various ,ndustrial (ommittees. !"e Government decision to set up t"e first wage #oard in cotton textile and sugar industries in :C?A was also influence #y t"e -eport of t"e ,108s expert. % &' siti n and 3un!ti ns 3 9a,e # ard !"e composition of wage #oards is$ as a rule$ tripartite representing t"e interests of la#or$ management and t"e pu#lic. 1a#our and management representatives are maintained in e)ual num#ers #y t"e government$ wit" consultation and consent of t"e ma'or central organiGations. Generally$ t"e la#or and management representatives are selected from t"e particular industry #eing investigated. !"ese #oards are c"aired #y government9 nominated mem#ers representing t"e pu#lic. !"ey function industry9wise wit" #road terms fo reference$ w"ic" include recommending t"e minimum wage$ differential cost of living compensation$ regional wage differentials$ gratuity$ "ours of wor%$ etc. !"e Wage Boards are re)uired to. determine w"ic" categories of employees 3manual$ clerical$ supervisory etc.4 are to #e #roug"t wit"in t"e scope of t"e wage fixationI

to wor% out a wage structure #ased on principles of fair wages as formulated #y t"e (ommittee on 2air Wages. t"e system of payment #y resultsI to wor% out t"e principles t"at s"ould govern of #onus to wor%ers in respective industries.

,n addition to t"ese common items$ some wage #oards may also #e as%ed to deal wit" t"e )uestion of H#onusF 3li%e t"at of t"e wage #oards for cement$ sugar and 'ute industries4I gratuity 3li%e t"at of t"e wage #oards for t"e iron ore mining$ limestone and dolomite mining industries and t"e second wage #oard on cotton textile industryI demands in respect of payments ot"er t"an wages 3wage #oards of 'ute and iron and steel industry4I "ours of wor% 3 ru##er plantation industry4$ interim relief 3li%e t"at of t"e wage #oards for 'ute industry and port and doc% wor%ers4. Some wage #oards 3li%e t"at of t"e wage #oards for sugar$ 'ute$ iron ore$ ru##er$ tea and coffee plantation$ limestone and dolomite mining industries4 "ave #een re)uired to ta%e into account t"e Especial features of t"e industry8. !"us$ wage #oards "ave to deal wit" a large range of su#'ects of w"ic" t"e fixation of wage9scales on an industry9wise #asis constitutes t"e #iggest of all t"e issues #efore t"em. E*aluati n 3 9a,e # ards !"e (ommittee set up #y t"e ;ational (ommission on 1a#our identified t"ree ma'or pro#lems from w"ic" t"e wage #oards suffer. Ma'ority of t"e recommendations of wage #oards are not unanimousI !"e time ta%en #y t"e wage #oards to complete t"eir tas% "as #een rat"er unduly longI and ,mplementation of t"e recommendations of t"e wage #oards "as #een difficult. !"e (ommittee made some important recommendations as #elow. !"e ("airman of t"e wage #oard s"ould #e selected #y common consent of t"e organisation of employees and employees in t"e industry concerned. ,n future t"e wages #oard s"ould function essentially as a mac"inery for collective #argaining and s"ould strive for unity. Wage #oards s"ould #e assisted #y tec"nical assessors and experts.

!erms of reference of wage #oards s"ould #e decided #y Government in consultation wit" t"e organisation of employers and t"e wor%ers concerned. A central wage #oard s"ould #e set up in t"e Union Ministry of 1a#our on a permanent #asis to serve all wage #oards t"roug" t"e supply of statistical and ot"er material and lending of t"e necessary staff. Unanimous recommendations of wage #oards s"ould #e accepted and in case of non9unanimous recommendations$ government s"ould "old consultations wit" t"e organisation of employers and employees #efore ta%ing a final decision. Wage #oards s"ould not #e set up under any statues$ #ut t"eir recommendations as finally accepted #y t"e Government s"ould #e made statutorily #inding in t"e parties. 2or ,ndustries covered #y wage #oards$ a permanent mac"inery s"ould #e created for follow9up actionI and Wage9#oards s"ould complete t"eir wor% in one year8s time and t"e operation of t"e recommendation of a wage #oard s"ould #e #etween two or t"ree years$ after w"ic" need for a su#se)uent wage #oards s"ould #e considered on merit.

,n t"ese recommendations are accepted$ t"e wor%ing of wage #oards may #e made more effective. !"e institution of wage #oards "as come to #e widely accepted in ,ndia as a via#le wage determination mec"anism. Bot" unions and employers8 organiGations "ave supported it from its very inception$ and "ave #een willing to accept c"anges to ma%e it more efficient and productive. ,t "as succeeded in promoting industry9wise negotiations$ as contrasted to enterprise9level decisions under ad'udications$ more accepta#le agreements on wages and ot"er conditions of employment of industrial peace. 2urt"ermore$ in addition to encouraging greater participation #y t"e parties and freedom in decision9ma%ing$ t"e #oards "ave functioned wit" responsi#ility and restraint and t"eir recommendations "ave not undermined t"e efficiency of t"e industry. 7owever$ delays involved in actual wor%ing of t"e #oards and imperfect implementation of t"e reconditions "as #een often t"e cause of anxiety$ #ut t"ese can #e reduce considera#ly if collection and ta#ulation of #asic information and relevant data on wage fixation is done on a running and continuing #asis in respect of all ma'or industriesK employments. %eview 6uestions

:. W"at is a wage policyL W"at are its o#'ectivesL <. W"at are wage #oardsL W"at are its functionsL

UNIT 4
1:+ 'm"lo ee &ommunication 11+ -or$er.s 'ducation and Training

Less n 1A E&'l .ee % &&uni!ati n


More effective "uman relations is engendered t"roug" ade)uate communication. !"e origin of t"e word HcommunicationF lies in t"e 1atin word HcommunisF denoting HcommonF. !"erefore communication is concerned wit" imparting a common idea or understanding and covers any type of #e"aviour resulting in an exc"ange of meaning. An executive8s wor%ing day is filled wit" communication of different types li%e orders$ reports$ conversations and rumours. (ommunication is vital in t"e relations"ip #etween executive and t"eir su#ordinates. ,t is t"roug" effective communication t"at an executive ultimately gets wor% done #y ot"ers. !"erefore to #e effective$ every executive must %now "ow to communicate. W"ilst t"e tradionalists viewed t"e communication purpose as providing t"e means w"ere#y a plan can #e implemented and action coordinated towards t"e common goal or end resultI t"e #e"aviouralists loo%ed upon it as a means w"ere#y persons in t"e organisatoin can #e motivated to execute suc" plans ent"usiastically and willingly. W"atever viewpoint is accepted$ effective communications re)uires an appreciation of its meaning and o#'ectives as well as of t"e #arriers w"ic" effective communication. Ob5ectives of &ommunication Management depends upon communications to ac"ieve organiGational o#'ectives. Since managers wor% wit" and t"roug" ot"er people$ all t"eir acts$ policies$ rules$ orders and procedures must pass t"roug" some %ind of communication c"annel. Also t"ere must #e c"annel of communication for feed#ac%. Accordingly$ some of t"e purposes of communication are. !o discourage t"e spread of misinformation$ am#iguity and rumorsI w"ic" can cause conflict and tension. !o foster any attitude w"ic" is necessary for motivation$ cooperation and 'o# satisfaction. !o develop information and understanding among all wor%ers and t"is is necessary for group effort.

!o prepare wor%ers for a c"ange in met"ods of environments #y giving t"em necessary information in advance. !o encourage su#ordinates to supply ideas and suggestions for improving upon t"e product or wor% environment and ta%ing t"ese suggestions seriously. !o improve la#our9management relations #y %eeping t"e communications c"annels open and accessi#le. !o encourage social relations among wor%ers #y encouraging inter9 communication. !"is would satisfy t"e #asic "uman need for a sense of #elonging and friends"ip.

Im"ortance of &ommunication ,nter9personal roles re)uire managers to interact wit" supervisors$ su#9ordinates$ peers and ot"er outside t"e organisation. !"us$ or co-ordinate action( communication is necessary. (ommunication transforms a group of unrelated individuals into a term t"at %nows w"at its goals are and "ow it will try to reac" t"em. (ommunication allows people to co9ordinate #y providing t"em wit" a way to share information. !"e first type of information t"at needs to #e s"ared is w"at t"e goals of t"e organisatoins are. eople need to %now w"ere t"ey are "eading and w"y. !"ey also need directions for t"eir specific tas%s. (ommunication is especially important for t"e tas% of decision-making. Decision9ma%es must s"are t"eir views on w"at t"e pro#lem is and w"at t"e alternatives are. 0nce a decision "as #een made$ communication is necessary to implement t"e decision and to evaluate its results. (ommunication also allows people to express their emotions. (ommunications of feelings can #e very important to employee morale and productivity. Employees w"o feel t"at t"ey cannot vent t"eir anger or express t"eir 'oy on t"e 'o# may feel frustrated and repressed. 0n any given day$ a manager may communicate for all t"e purposes descri#ed a#ove. (ommunication goes up$ down and across t"e levels of t"e organiGation8s "ierarc"y. &ommunication !rocess !"e following figure presents a general way to view t"e communication process / as a loop #etween t"e source and t"e receiver. ,n t"e simplest %ind of communication$ #ot" t"e sender and t"e receiver perform t"e encoding and decoding functions automatically.

Sen(in! !ransmission 3t"roug" c"annels4

Encoding

Decoding

Sources Sender

;oise

-eceiver

Decoding

!ransmission

Encoding

S ur!e>sender !"e communication cycle #egins w"en one 3called t"e sender4 wants to transport meaning9a fact$ idea$ opinion or ot"er information9to someone else. A manager$ for instance$ mig"t call t"e researc" departments to send to t"e latest information on a particular mar%et. En! din, !"e second step is to encode t"e message into a form appropriate to t"e situation. !"e encoding mig"t ta%e t"e form of words$ facial expressions$ gestures$ and p"ysical actions and sym#ols li%e num#ers$ pictures$ grap"s etc. ,ndeed$ most communication involves a com#ination of t"ese. !"e encoding process is influenced #y t"e content of t"e message$ t"e familiarity of t"e sender and receiver and ot"er situational factors. Trans&issi n

After t"e message "as #een encoded$ it is transmitted t"roug" t"e appropriate c"annel or medium. (ommon c"annels or media in organiGations include face9to9face communication 3using t"e media of sound waves$ lig"t etc.4$ letters$ and reports etc. 3!"e c"annel #y w"ic" an encoded message is #eing transmitted to you at t"is moment is t"e printer page4. De! din, !"e person to w"om t"e message in sent t"e receiver4 interprets t"e meaning of t"e message t"roug" t"e process of decoding. !"is process may #e simple and automatic$ #ut it can also )uite complex. Even w"en you are 'ust reading a letter$ you may need to use all your %nowledge of t"e language$ your experience wit" t"e letter9writer and so on. ,f t"e intended message and t"e received message differ a great deal$ communication "as #ro%en down 3communication gap4 and misunderstanding is li%ely to follow. Re!ei*er !"e receiver can #e an individual$ a group$ or an individual acting on #e"alf of a group. !"e sender "as generally little control over "ow t"e receiver will deal wit" t"e message. !"e receiver may ignore it$ decide not to try to decode or understand it or respond immediately. !"e communication cycle continues w"en t"e receiver responds #y t"e same steps #ac% to t"e original sender$ w"ic" is called Efeed#ac%8. N ise ,n t"e communication process$ noise ta%es on a meaning slig"tly different from its usual one. ;oise refers to any type of distur#ance t"at reduces t"e clearness of t"e message #eing transmitted. !"us$ it mig"t #e somet"ing t"at %eeps t"e receiver from paying close attention suc" as someone coug"ing. 0t"er people tal%ing closely$ a car driving #y etc.$ it can #e a disruption suc" as distur#ance in a telep"one line$ wea% "unger or minor ailments w"ic" may affect t"e message. Methods of &ommunication !"ere are mainly t"ree primary met"ods of communicating in organiGations$ i.e. written$ oral$ and non9ver#al. 0ften t"e met"ods are com#ined. (onsiderations t"at effect t"e c"oice of met"od include t"e audience 3w"et"er it is p"ysically present4$ t"e nature of t"e message 3its urgency or secrecy4$ and t"e cost of transmission. !"e figure given #elow s"ows various forms eac" met"od can ta%e

Met$ ds 3 ! &&uni!ati n in r,ani/ati ns Written 1etters Memos -eports Manuals 2orms

0ral ,nformation (onversations !as%9related exc"ange Group Discussions 2ormal Speec"es

;on96er#al #uman &lements: 2acial expressions Body language &nvironmental &lements: 0ffice design Building arc"itecture

!ypically organisations produce a great deal of written communication of many %inds. A letter is a formal means of communicating wit" an individual$ generally someone outside t"e organisatoin. ro#a#ly t"e most common form of written communication in organisatoins is t"e office memorandum$ or memo. Memos usually are addressed to a person or group inside t"e organisatoin. !"ey tend to deal wit" a single topic and are more impersonal$ #ut less formal t"an letters. 0t"er common forms of written communication include reports$ manuals and forms. -eports generally summariGe t"e progress or results of a pro'ect and often provide information to #e used in decision9 ma%ing. Manuals "ave various functions in organiGations. ,nstructions manuals tell employees "ow to operate mac"inesI policy and procedures manuals inform t"em to wor%9related pro#lems. 2orms are standardiGed documents on w"ic" to report information. As suc"$ t"ey represent attempts to ma%e communication more efficient and information more accessi#le. A performance appraisal form is an example.

Oral &ommunication 0ral communication$ also %nown as face9to9face communication is t"e most prevalent form of organiGational. ,t may #e in t"e form of direct tal% and conversation #etween t"e spea%ers and listeners w"en t"ey are p"ysically present at one place or t"roug" telep"one or intercom system conversation. W"ere one9way communication is re)uired$ t"en oral communication may include pu#lic address system. ,nformal rumour mill or grapevine are also popular form of oral communication. ,t is most effective for leaders to address t"e followers via pu#lic address system or audio9visual media. 0ral communication is particularly powerful #ecause t"e receiver not only "ears t"e content of t"e message$ #ut also o#serves t"e p"ysical gestures associated wit" it as well as c"anges in tone$ pitc"$ speed and volume of t"e spo%en word. !"e "uman voice can impart t"e message muc" more forcefully and effectively t"an t"e written words is an effective way of c"anging attitudes$ #eliefs and feelings$ since fait"$ trust and sincerity can #e #etter 'udged in a face9to9face conversation rat"er t"an in written words. Ad*anta,es Some of t"e advantages of oral communication are. ,t is direct$ time saving and least expensive form of communication. ,t allows for feed#ac% and spontaneous t"in%ing$ so t"at if t"e receiver is unsure of t"e message$ rapid feed#ac% allows for early detection #y t"e sender so t"at corrections can #e immediately made$ if necessary. Because t"e message is conveyed instantaneously$ it "elps in avoiding delaysI red tape and ot"er formalities. ,t conveys a personal warmt" and friendliness and it develops a sense of #elonging #ecause of t"ese personaliGed contracts.

Disad*anta,es !"ere is not formal record of communication so t"at any misunderstood message cannot #e referred #ac% to w"at was actually said. ,f t"e ver#al message is passed on long t"e "ierarc"ical c"ain of command$ t"en some distortions can occur during t"e process. !"e more people t"e message must pass t"roug"$ t"e greater t"e potential distortion. 1engt"y and distant communication cannot #e effectively conveyed ver#ally.

!"e receiver may receive t"e message in "is own perception and t"us misunderstand t"e intent of t"e message. Spontaneous responses may not #e carefully t"oug" a#out. !"e spirit of aut"ority cannot #e transmitted effectively in ver#al transactions. More or less or a different meaning mig"t #e conveyed #y manner of spea%ing$ tone of voice and facial expressions.

-ritten &ommunication A written communication is put in writing and is generally in t"e form of instructions$ letters$ memos$ formal reports$ rules and regulations$ policy manuals$ information #ulletins and so on. !"ese areas "ave to #e covered in writing for efficient functioning of t"e organisation. ,t is most effective w"en it is re)uired to communicate information t"at re)uires actions in t"e future and also in situations w"ere communication is t"at of general informational nature. ,t also ensures t"at every one "as t"e same information. Ad*anta,es ,t serves as evidence of events and proceedings. ,t provides a permanency of record for future references. !"e message can #e stored for an indefinite period of time. ,t reduces t"e li%eli"ood of misunderstanding and misinterpretation. !"e written communications are more li%ely to #e well considered$ logical and clear. And t"e message can #e c"ec%ed for accuracy #efore it is transmitted. ,t can save time w"en many persons must #e contacted at t"e same time. ,t is more relia#le for transmitting lengt"y statistical data. ,t appears formal and aut"oritative for action.

Disad*anta,es ,t can #e very time9consuming$ specially for lengt"y reports. !"ere is no immediate feed#ac% opportunity to #e sure t"at t"e receiver "as understood t"e message. (onfidential written material may lea% out #efore time$ causing disruption in its effectiveness.

,t leads to excessive formality in personal relations.

Non)verbal communication Some of t"e meaningful communication is conveyed t"roug" non9ver#al ways. Even some of t"e ver#al messages are strengt"ened or diluted #y non9ver#al expressions. !"ese non9ver#al expressions include facial expressions and p"ysical movement. ,n addition$ some of t"e environmental elements suc" as #uilding and office space can convey a message a#out t"e aut"ority of t"e person. According to !ip%ins and Mc(arter$ facial expressions can #e categorised as. ,nterest9excitement En'oyment9'oy Surprise9startle Distress9anguis" 2ear9terror S"ame9"umiliation (ontempt9disgustI and Anger9rage

"ysical movements or #ody language is %nown as H%inesicsF. A "ands"a%e is pro#a#ly t"e most common form of #ody language and tells a lot a#out a person8s disposition. 0t"er examples of #ody language are tilting of "ead$ folding of arms or sitting position in a c"air. 0ur facial expressions can s"ow anger$ frustration$ arrogance$ s"yness$ fear and ot"er c"aracteristics t"at can never #e ade)uately communicated t"roug" written word or t"roug" oral communication itself. Some of t"e ot"er #ody language symptoms are s"rugging our s"oulders for indifference$ win% an eye for misc"ief or intimacy$ tap our fingers on t"e ta#le for impatience and we slap our fore"ead for forgetfulness. As for us environmental elements are concerned$ a large office wit" plus" carpeting and expensive furniture conveys a message of status$ power and prestige suc" as t"at of a c"ief operating officer. 0n t"e ot"er "and$ a small metal des% on a corner communicates t"e status of a low ran%ing officer in t"e organiGational setting. Accordingly non9ver#al actions "ave considera#le impact on t"e )uality of communication. &ommunication networ$s

A communication networ% is t"e pattern of information exc"ange used #y t"e mem#ers of a group.

Su#ordinate

Senior Manager Su#ordinate Manager Assistant Manager Management !rainee

Su#ordinate

Manager

Su#ordinate 40EEL

Co""'nication net&ork$ C0.IN CIRCLE !as% 2orce Mem#er !as% 2orce Mem#er

!as% 2orce Mem#er

!as% 2orce Mem#er

.LL:C0.NNEL ,nformal Group Mem#er ,nformal Group Mem#er

,nformal Group Mem#er

,nformal Group Mem#er

W"en t"e mem#ers of a group communicate mostly wit" t"e group leader$ a wheel network develops. W"en t"e mem#ers of a group are on different levels of t"e organiGation8s "ierarc"y$ a chain network is li%ely. Mem#ers or a tas%9force or committee often develop a circle network of communication wit" eac" person communicating directly to t"e ot"er mem#ers of t"e tas%9force. ,nformal groups t"at lac% a formal leader often form an all-channel network / t"at everyone communicates wit" everyone else. !"e density of t"e communication refers to t"e total )uantity of communication among mem#ers. !"e distance #etween mem#ers descri#es "ow far a message must travel to reac" t"e receiver. !"e ease wit" w"ic" mem#ers can communicate wit" ot"ers , measured #y mem#ers8 relative freedom to use different paths to communicate. Mem#ers8 commitment to t"e group8s wor% is defined #y t"e centrality of the position of t"e mem#ers. All t"ese provide insig"t into possi#le communication pro#lems. 2or instance$ a group wit" "ig" density and distance can expect a lot of noise distortion in its communications$ as messages travel a long distance to t"eir receives.

!"e following factors influence t"e formation of communication patterns wit"in small groups. :. Type of task: ,f t"e tas% of t"e group is simple / a c"ain or w"eel networ% will pro#a#ly arise. 2or "and tas%$ all c"annel networ% will arise. <. The environment: !"e environment including t"e group8s seating arrangement and meeting place also affects communication patterns. 2or instance$ if mem#ers always sit around a ta#le$ t"en circle networ% will arise. =. )roup performance factors: !"e group performance factors li%e group8s siGe$ composition$ norms and co"esiveness also affect t"e formation of communication networ%s. 2or instance$ it is muc" easier to "ave an all9c"annel networ% in a group of eig"t t"an in a group of eig"ty. Managers must ma%e use of all t"ese c"aracteristics and tendencies to "elp groups communicate and wor% most efficiently. A manager w"o sees t"at a w"eel networ% is forming around and experienced$ trusted employee may not interfere wit" t"e process. ,f an assertive #ut irresponsi#le employee #ecomes t"e "u# of suc" a w"eel$ t"e manger may need to ta%e action. ,f t"e manager relies on a group to "elp ma%e decision$ t"e manager may encourage silent group mem#ers to see% in order to get t"e desired decisions. Forms of Organizational &ommunication Alt"oug" interpersonal and group forms of communication pertains even at t"e #roadest organiGational levels$ t"ey do not sufficiently descri#e t"e pat"s of all message transmitted in organiGations. ,ndividuals can send and receive messages across w"ole organiGational levels and departments #y means of vertical communication or t"e information communication networ%. ;on9ver#al communication is also important and can #e part of interpersonal$ group and organiGational communication. 4erti!al ! &&uni!ati n 6ertical communication is communication t"at follows #ot" up and down t"e organiGational "ierarc"y. !"e communication typically ta%es place #etween manages and t"eir superiors and su#9ordinates. U'9ard ! &&uni!ati n Upward (ommunication consists of messages moving up t"e "ierarc"y from su#9 ordinates to superiors. !"e content of upward communication usually includes re)uests$ suggestions or complaints and information t"e su#9ordinate t"in%s is of importance to t"e superior.

D 9n9ard ! &&uni!ati n Downward (ommunication consists of messages moving down t"e "ierarc"y from superiors to su#9ordinates. !"e content of downward communication often includes directives$ assignments$ performance feed#ac% and information t"at t"e superior t"in%s is of value to t"e su#9ordinate. 2or example$ at !E1(0$ wit" a view to facilitate expeditious and simultaneous communicate to t"e wor%ers on t"eir 'o#s$ t"e Wor%er is provided wit" a pu#lic address system. Dissemination of information is regard to suc" maters as procedural c"ange and company8s policies on transfers$ promotion etc. is done t"roug" circulars and notice put up on t"e notice #oards. ,n addition$ magaGines suc" as !elco ;ews$ !elco 2las"es and !elco E% Samuday provide details wit" regard to t"e company8s activities in different sp"eres. Transa!ti nal ! &&uni!ati n Wen#urg and Wilmont suggest t"at instead of communication #eing HupwardF or HdownwardF w"ic" is inter9communication$ it s"ould #e HtransactionalF communication w"ic" is mutual and reciprocal #ecause$ H all persons are engaged in sending encodingF and receiving 3decoding4 messages simultaneously. Eac" person is constantly s"aring in t"e encoding and decoding process and eac" person is affecting t"e ot"erF. ,n t"e transactional process$ t"e communication is not simply t"e flow of information$ #ut it develops a personal lin%age #etween t"e superior and t"e su#ordinate. In3 r&al % &&uni!ati n Anot"er term for informal communication networ% is t"e grapevine informal networ%s are found in all organiGations. ,t is in t"e form of gossip in w"ic" personal spreads a message to as many ot"ers as possi#le w"o may eit"er %eep t"e information to t"emselves or pass it on to ot"ers. !"e content of gossip is li%ely to t"e personal information or t"e information a#out t"e organisation itself. Managers s"ould "ave some control over t"e informal networ%. 2or example$ t"e grapevine in an organisation may #e carrying "armful information$ false information or politically motivated information. W"en t"ese %inds of rumours are #eing spread$ manages may need to intervene. !"ey can gold open meetings and o#'ectively discuss t"e issues t"at are #eing informally discussed already. !"ey may also issues a clearly worded memo or report stating t"e facts and t"ere#y "elp minimiGe t"e damage t"at t"e informal networ% can do. Managers can also o#tain valua#le information from t"e grapevine and use it for decision9ma%ing.

Other Forms of &ommunication 0ne t"at "as #ecome especially popular of late is rat"er collo)uially la#eled Hmanagement #y wandering aroundF. !"e #asic idea is t"at some managers %eep in touc" wit" w"at8s going on #y wandering around and tal%ing wit" people9su#9ordinates$ customers$ dealers and any one else involved tit"e company in any way. !"is will give managers new ideas and a #etter feel for t"e entire company. 9arriers to &ommunication !"e communication must #e interpreted and understood in t"e same manner as it was meant to #e sent #y t"e sender$ ot"erwise it will not ac"ieve t"e desired result and a communication #rea%9down will occur. !"ere are certain external road #loc%s to effective communication. ,n addition$ t"ere are personal factors w"ic" affect communication. Some of t"e organiGational #arriers and some of t"e interpersonal #arriers to effective communication are discussed #elow. Noise 9arriers ;oise in any external factor w"ic"I interferes wit" t"e effectiveness of communication. !"e term is derived from noise or static effects in telep"one conversation or radio wage transmission. ,t may cause interference in t"e process of communication #y distraction or #y #loc%ing a part of t"e message or #y diluting t"e strengt" of t"e communication. Some of t"e sources contri#uting towards noise factor are. P r ti&in,

A message sent on poor timing acts as a #arrier. 2or instance a last minute communication wit" a deadline may put too muc" pressure on t"e receivers and may result in resentment. A message must #e sent at an appropriate time to avoid t"ese pro#lems. 7ence t"e manager must %now w"en to communicate. Ina''r 'riate !$annel oor c"oice of c"annel communication can also #e contri#utory to t"e misunderstanding of t"e message. !"e manager must decide w"et"er t"e communication would #e most effective if it is in writing or #y a telep"one call or a face9to9face conversation or a com#ination of t"ese modes. I&'r 'er r inadeBuate in3 r&ati n !"e information must #e meaningful to t"e employee. ,t must #e precise and to t"e point. !oo little or too muc" information endangers effective communication. Am#iguity in use of words will lead to different interpretations.

P$.si!al distra!ti ns Any p"ysical distractions suc" as telep"one interruptions or wal%9in visitors can interfere wit" t"e effective face9to9face communication process. Or,ani/ati nal stru!ture (ommunication may #e #loc%ed$ c"aotic or distorted if t"e c"annels are not clear or if t"ere are #ottlenec%s or dead ends. 7ence t"e organisation structure s"ould #e suc" t"at t"e c"ain of command and c"annels of communication are clearly esta#lis"ed and t"e responsi#ility and aut"ority are clearly assigned and are tracea#le. In3 r&ati n *er$ead 0verload occurs w"en individuals receive more information t"an t"ey are capa#le of processing. !"e result could #e confusion or some important information may #e laid aside for t"e purpose of convenience. Net9 r7 #rea7d 9n ;etwor% #rea%down may #e intentional or due to information overload and time pressures under w"ic" a communication "as to #e acted upon. Some factors contri#uting to suc" disruption are. ,mportant negative information may #e wit""eld #y t"e managers. !"e secretary may forget to forward a memo. !"ere may #e professional 'ealousy resulting in closed c"annels.

Inter"ersonal 9arriers !"ere are may interpersonal #arriers t"at disrupt t"e effectiveness of t"e communication process and generally involve suc" c"aracteristics of eit"er t"e sender or t"e receiver t"at cause communication pro#lems. Some of t"ese are. <ilterin, 2iltering refers to intentionally wit""olding or deli#erate manipulation of information #y t"e sender$ eit"er #ecause t"e sender #elieves t"at t"e receiver does not need all t"e information or t"at t"e receiver is #etter off not %nowing all aspects of a given situation. ,t s"ould also #e t"at t"e receiver is simply told w"at "e wants to "ear.

Se&anti! #arriers !"ese #arriers occur due to differences in individual interpretations of words and sym#ols. !"e words and paragrap"s must #e interpreted wit" t"e same meaning as was intended. !"e c"oice of a wrong word or a comma at a wrong place in a sentence can sometimes alter t"e meanings of t"e intended message. 2or example$ a nig"t clu# advertisement sign$ Hclean and decent dancing every nig"t except SundayF$ could lead to two interpretations. 2irst$ t"at t"ere is no dancing on Sundays and second$ t"at t"ere is dancing on Sundays$ #ut it not clean and decent. Per!e'ti n erception relates to t"e process t"roug" w"ic" we receive and interpret information from our environment and create a meaningful wor% out of it. Different people may perceive t"e same situation differently. 7earing w"at we want to "ear and ignoring information t"at conflicts wit" w"at we %now can totally distort t"e intent or t"e content of t"e message. Some of t"e perceptual situations t"at may distort a manager8s assessment of people resulting in reduced effectiveness of t"e communication are. A manager may perceive people to #elong to one category or anot"er as stereotypes$ rat"er t"an uni)ue and distinct individuals. 2or example$ "e may perceive women to #e less efficient managers. A manager may ma%e total assessment of a person #ased on a single trait. A pleasant smile may ma%e a positive first impression. A manager may assume t"at "is su#ordinate8s perception a#out t"ings and situation are similar to "is own.

!"is perception limits t"e manager8s a#ility to effectively respond to and deal wit" individual difference and differing views of wor% situations. %ultural #arriers !"e cultural differences can adversely affect t"e communication effectiveness$ specially for multi9national companies and enterprise. Sender !redi#ilit. W"en t"e sender of t"e communication "as "ig" credi#ility in t"e eyes of t"e receiver$ t"e message is ta%en muc" more seriously and accepted at face value. ,f t"e receiver "as confidence$ trust and respect for t"e sender$ t"en t"e decoding and t"e interpretations of t"e message will lead to a meaning of sender. (onversely$ if t"e sender is not trusted$ t"en t"e receiver will scrutiniGe t"e message "eavily and deli#erately loo% for "idden

meanings or tric%s and may end up distorting t"e entire message. Similarly$ if t"e source is #elieved to #e an expert in a particular field t"en t"e listener may pay close attention to t"e message$ and #elieve it specially if t"e message is related to t"e field of expertise. E& ti ns !"e interpretation of t"e communication also depends upon t"e state of t"e receiver at t"e time w"en message is received. !"e same message received w"en t"e receiver is angry$ frustrated or depressed may #e interpreted differently t"an w"en "e is "appy. Extreme emotions are most li%ely to "inder effective communication #ecause national 'udgments are replaced #y emotional 'udgments. MultiC&eanin, 9 rds Many words in Englis" language "ave different meanings w"en used in different situations. Accordingly$ a manager must not assume t"at a particular wor% means t"e same t"ing to all people w"o use it. 7ence$ t"e managers must ma%e sure t"at t"ey use t"e word in t"e same manner as t"e receiver is expected to understand it$ ot"erwise it will create a #arriers to proper understanding of t"e message. <eed#a!7 #arriers !"e final source of communication #arriers is t"e feed#ac% or lac% of it. 2eed#ac% is t"e only way to ascertain as to "ow t"e message was interpreted. Overcoming &ommunication 9arriers ,t is very important for t"e management to recogniGe and overcome #arriers to effective communication for operational optimiGation and t"is would involve diagnosing and annualiGing$ situations$ designing proper messages$ selecting appropriate c"annels for communicating t"ese messages$ assisting receivers of massages in correct decoding and interpretation and providing an efficient and effective feed#ac% system. Some of t"e steps t"at can #e ta%en in t"is respect are as follows. :. 'eedback: 2eed#ac% "elps to reduce misunderstandings. !"e information is transferred more accurately w"en t"e receiver is given t"e opportunity to as% for clarifications and answer to any )uestions a#out t"e message. !wo9way communication$ even t"oug" more time9consuming$ avoids t"e message. !wo9 way communication even t"oug" more time9consuming$ avoids distrust and leads to trust and openness w"ic" #uilds a "ealt"y relations"ip contri#uting to communications effectiveness. <. Improve listening skills: Good listening "a#its lead to #etter understanding and good relations"ips wit" t"e eac" ot"er. Some guidelines for effective listening are.

1istening re)uires full attention to t"e spea%er. Do not let your mind wander or #e preoccupied wit" somet"ing else$ ot"erwise you would not #e a#le to grasp t"e meaning of t"e message in its entirety. !"e language used$ tone of t"e voice and emotions s"ould receive proper attention. 1isten for feelings in t"e message content and respond positively to t"ese feelings. As% )uestions to clarify any points t"at you do not understand clearly and reflect #ac% to t"e spea%er your understanding of w"at "as #een said. Ma%e sure t"at t"ere are no outside interruptions and interference during t"e course of conversation. Do not pre'udice or value t"e importance of t"e message due to your previous dealings and experiences wit" t"e sender or your perceptions a#out "im$ positive or negative. Don8t 'ump to conclusions #efore t"e message is over and is clearly understood. SummariGe and restate t"e message after it is over to ma%e sure a#out t"e content and t"e intent of t"e message.

=. 5evelop writing skills: (learly written messages can "elp avoid semantic and perception #arriers. A well written communication eliminates t"e possi#ility of misunderstanding and misinterpretation. W"en writing messages it is necessary to #e precise t"us ma%ing t"e meaning as clear as possi#le so t"at it accomplis"es t"e desired purpose. Some "elpful "ints in written communication are suggested #y -o#ert Degise as follows.

+eep words simple. !"is will reduce your t"oug"ts to essentials and t"e message will #e easier to understand #y t"e receiver. !"e message will #e lost if t"e words are complex and do not lend to a clear single meaning. Do not #e #ogged down #y rules of composition. W"ile t"e rules of grammar and composition must #e respected$ t"ey s"ould not ta%e priority over t"e ultimate purpose of t"e communication.

Write concisely. Use a few words as possi#le. Do not #e #rief at t"e cost of completeness$ #ut express your t"oug"ts$ opinions and ideas in t"e fewest num#er of words possi#le. ,n specific. 6agueness destroys accuracy w"ic" leads to misunderstanding of t"e meaning or intent of t"e message. Accordingly$ #e specific and to t"e point.

>. Avoid credibility gaps: (ommunication is a continuing process and t"e goal of t"e communication is complete understanding of t"e message as well as t"e creation of trust among all mem#ers of t"e organisation. Accordingly$ t"e management must #e sincere and s"ould earn t"e trust of t"e su#ordinates. Management s"ould not only #e sensitive to t"e needs and feelings of wor%s #ut also its promises s"ould #e supported #y actions. Accordingly to studies conducted #y 5. 1ift$ openness and an atmosp"ere of trust #uilds "ealt"y relations"ip and closes credi#ility gaps$ t"us contri#uting to communications effectiveness. (uidelines for 'ffective &ommunication !"ese guidelines are designed to "elp management improve t"eir s%ills in communicating so as not only avoid any #arriers to effective communication$ #ut also to strengt"en t"e #asis for optimum results w"ic" depend upon t"e clear understanding of t"e desired communication. T$e ideas and &essa,es s$ uld #e !learD #rie3 and 're!ise !"e ideas to #e communicated must #e well planned and clearly identified. !"is will eliminate am#iguity so t"at t"e message will not #e su#'ect to more t"an one interpretation. !"e message must #e clear$ precise and to t"e point and free from distortions and noise. ,t s"ould also #e clear$ precise and to t"e point and free from distortions and noise. ,t s"ould also #e #rief so t"at it is 'ust necessary and sufficient and s"ould avoid loose ends or meaningless and unnecessary words. Sense 3 ti&in, !"e message s"ould not only #e timely so t"at t"e decisions and actions can #e ta%en in tie and w"en necessary$ #ut also t"e timing of t"e message and t"e environmental setting in w"ic" t"e message is delivered and received is e)ually important. Inte,rit.

!"e communication must pass t"roug" t"e proper c"annels to reac" t"e intended receiver. !"e communication flow and its spread must avoid #y passing levels or people. W"en t"ese concerned levels are omitted or #ypassed$ it creates #ic%ering$ distrust$ confusion and conflict. Accordingly$ t"e esta#lis"ed c"annels must #e used as re)uired. % nsult 9it$ t$ers 9$ are in* l*ed in 'lannin, t$e ! &&uni!ati n ,f people "ave participated in t"e planning process$ t"ey would #e "ig"ly motivated to give active support to suc" communication and would carry it t"roug". !"e people w"o are concerned must %now exactly w"at t"ey need and w"en t"ey need t"e communication. % nsider t$e re!ei*er8s interest !a%e t"e receivers interest into account$ t"en t"e receiver will #e more responsive to t"e communication. !"e management must clarify any part of t"e communication t"at may #e necessary and must encourage comments$ )uestions$ and feed#ac%. !"e management must always #e "elpful in carrying out t"e intended message of t"e communication. M de 3 deli*er. W"ile delivering t"e communication$ avoid negative statements li%e$ H, am not sure it will wor%F$ #ut #e confident and definitive. !"e success of t"e communication also depends upon t"e tone of t"e voice if t"e communication is ver#al$ expression and emotions ex"i#ited$ attentiveness to t"e receiver and so on. !"e written communication s"ould #e polite and unam#iguous. Use 'r 'er 3 ll 9Cu' All communications need a follow9up to ensure t"at t"ese were properly understood and carried out. !"e response and feed#ac% to t"e communication s"ould determine w"et"er t"e action to t"e communication "as #een prompt$ appropriate and accurate. % &&uni!ati n s$ uld #e ! &'re$ensi*e (ommunication s"ould #e complete so as not only to meet t"e demands of today #ut$ s"ould also #e #ased on future needs of t"e organisation as well as individuals. -ecently$ t"e nature of managerial and organiGational communication "as c"anged dramatically$ mainly #ecause of #rea% t"roug" t"e electronic tec"nology and advent of computers. ;ow cellular p"ones$ E9mail and ,nternet "ave made t"e communication )uic% and convenient. ,t is not even possi#le for managers from different cities to Emeet8 #y teleconferencing met"od wit"out leaving t"eir offices. At t"e same times$

psyc"ologists are #eginning to discover some pro#lems associates wit" t"ese new advances in communication. %ole of &ommunication in Industrial %elations !"e overall o#'ective of t"e communication system is to create a sense of oneness among t"e people and to secure t"e individual8s identification wit" t"e organisation. ,t is vital in t"e relations"ip #etween executives and t"eir su#ordinates. !"roug" proper communication t"e management is a#le to %eep its employees well informed wit" its ultimate o#'ectives and w"at it expects from eac" individual. ,f suc" information is s"ared freely$ t"e management can will t"e confidence and t"e employees can #e properly prepared for accepting necessary c"anges #y avoiding unnecessary misgivings. !"us$ communication see%s to unify$ coordinate and com#ine t"e entire employee for t"e ac"ievement of organiGational o#'ectives. As put # ("arles E. -edfield$ E(ommunication is t"e mec"anism t"roug" w"ic" "uman relations "ave developedF. H,t is claimed t"at it is impossi#le to "ave "uman relations wit"out communicationF. !"ere can #e no denying t"e fact t"at t"e ade)uacy and effectiveness of communication system largely determines t"e success and progress of an organisation. Re*ie9 :uesti ns :. Define communication and #ring out t"e importance of organiGational communications. <. W"at are t"e steps in communication processL =. W"at are t"e different types of communicationL >. ,dentify t"e #arriers to effective communication and discuss "ow t"ey can #e overcomeL ?. Discuss "ow communication acts as a tool to #ring a#out smoot" industrial relations.

Less n 11 6 r7er8s Edu!ati n and Trainin,


!"e wor%ers in t"e country s"ould #e regarded as t"e most significant component of t"e citiGen community and t"ey s"ould #e psyc"ologically satisfied #y providing opportunities for education and training. ,t "as #een aptly said t"at Ht"e ma'or capital stoc% of an industrially advanced country is not in its p"ysical e)uipment$ it is t"e #ody of %nowledge amassed from t"e tested findings and t"e capacity and t"e training of population to use t"is %nowledge effectivelyF. ,t "as now #een increasingly realiGed t"at t"ere is a growing need for t"e %ind of education t"at will properly e)uip t"e wor%ers and trade unions to meet t"eir increasingly "eavy economic and social responsi#ilities. &once"t of -or$er.s 'ducation ,t is very difficult to define precisely t"e term Hwor%ers8 educationF$ partly #ecause of t"e Hlac% of definitiveness of aim or wor%ers8 educationF$ and partly due to Hlac% of unanimity amongst la#our experts on t"ese aimsF. At a Seminar convened #y t"e ,.1.0. in (open"angen in :C?@ to consider t"e )uestion of wor%ers8 education$ it was gat"ered t"at t"e participants "ad very different conceptions of wor%ers8 educations. !o some$ it meant Heducation of t"e wor%ers as a trade unionistF$ to ot"ers$ it meant H#asic education for wor%ers w"o lac%ed opportunity in formal sc"oolingF$ to still ot"ers$ it meant Heducation of t"e wor%ers as a mem#er of t"e community and as a producer$ consumer or citiGenF. !"e term Hwor%ers8 educationF "as assumed different meanings in different countries due to "istorical reasons. H,n t"e United States of America wor%ers8 education is considered as synonymous wit" training in trade union leaders"ip. ,n t"e U.+. it covers trade unionism$ general adult education and vocational education. ,n many countries of Western Europe$ wor%ers8 education refers to education in citiGens"ip. ,n t"e developing countries$ including ,ndia$ t"e term wor%ers8 education is used in its wider connotation and aims at ma%ing t"e wor%er a #etter operative$ a #etter union mem#er and a #etter citiGen. According to 7arry 1aidlar$ HWor%ers8 education is an attempt on t"e part of t"e organiGed la#our to educate "is own mem#ers under in educational system in w"ic" t"e wor%ers prescri#e t"e courses of instruction$ select t"e teac"ers and in considera#le measure furnis" t"e financeF. !"e definition emp"asiGes upon. !"e trade union o educate its own mem#ersI

!"e educational system s"ould #e suc" in w"ic" t"e wor%ers t"emselves prepare t"e sylla#i and curricula and t"emselves select t"e teac"ersI and !"e system of education s"ould #e financed #y t"e fund of t"e union concerned.

2lorence eterson o#serves$ H!"e wor%ers8 education$ as commonly used$ in not a generic term #ut "as a specific connotation. ,t is a special %ind of adult education designed to give wor%ers a #etter understanding for t"eir status$ pro#lem$ rig"ts and responsi#ilities as wor%ers$ as union mem#ers$ as consumers and as citiGensF. According to anot"er aut"ority$ HWor%ers8 education and trade union are synonymous$ since t"e c"ief aim of wor%ers8$ education is to e)uip t"e trade unions to ta%e a more active interest in t"e movement.F But trade union education is narrower in scope in as muc" as it only confines itself in training wor%ers to #ecome good mem#ers of trade union w"ereas t"e wor%ers8 education #esides providing t"e wor%ers t"e training in trade unions also aims at social and fundamental education as t"at is given wit" view to ma%ing a wor%er a good citiGen as well as a good mem#er of t"e trade union. According to t"e Encyclopedia of Social sciences$ HWor%ers8 EducationF see%s to "elp t"e wor%er solve "is pro#lems not as an individual #ut as a mem#er of "is social class. aS a w"ole$ wor%ers8 education "as to ta%e into consideration t"e educational needs of t"e wor%er as an individual for "is personal evolutionI as an operative / for "is efficiency and advancementI as a citiGen / for a "appy and integrated life in t"e communityI as a mem#er of a trade union / for t"e protection of "is interests as a mem#er of t"e wor%ing class.F. H,t is $ t"erefore$ to #ridge t"e lacuna #y illiteracy$ to create #etter understanding of wor% and one8s own place in national economy$ to prepare wor%er for effective colla#oration wit" t"e management$ to ma%e "im a #etter citiGen$ to create leaders"ip among t"e ran%s of la#our$ to replace outsiders in trade unions and ultimately to ma%e t"em conscious of t"eir rig"ts and responsi#ilities t"at wor%er8s education aims atF. &haracteristic Features of -or$er.s 'ducation 0n t"e #asis of t"e various definitions given of wor%ers8 education$ certain c"aracteristic features may #e noted as #elow. !"e scope of wor%ers8 education is muc" wider t"an t"at of trade union education.

Wor%er8s education is designed to create trade union consciousness in t"e wor%ers #esides ma%ing t"em good citiGens and training t"em to understand t"eir status$ rig"ts and responsi#ilities. ,n wor%ers8 education$ t"e wor%ers t"emselves form t"e curriculum and select t"eir own teac"es. !"e institutions providing wor%ers8 education are controlled$ financed and managed #y t"e wor%ers. ,t is #ased upon t"e idea of gaining more t"e more strengt" for t"e #argaining power of trade and producing wor%ers w"o s"ould #e"ave as wor%ers$ ,t differs from vocational and professional education as its main aim is to train a wor%er for "is group advancement and for t"e solution of group pro#lems$ w"ereas vocational and professional education aims at individual advancement. !"e approac" in wor%ers8 education is psyc"ological and p"ilosop"ical. ,t includes general education$ vocational education$ tec"nical education$ social education and training in trade unionism.

0ims and Ob5ects of -or$ers. 'ducation According to t"e ;ational (ommission on 1a#our$ wor%ers8 educations s"ould ma%e a wor%er. A responsi#ly committed and disciplined operativeI Understand t"e #asic economic and tec"nical aspect of t"e industry and t"e plant w"ere "e is employed so t"at "e can ta%e an intelligent interest in its affairsI Aware of "is rig"ts and o#ligationsI Understand t"e organisatoin and functioning of t"e union as well as develop )ualities of leaders"ip$ loyalty and devotion towards trade union wor% so t"at t"e can intelligently participate in t"e affairs of "is unionI 1ead a clean and "ealt"y life #ased on a firm et"ical foundationsI and A responsi#le and alert citiGen.

,n t"e words of t"e Director9General of t"e ,.1.0.$ H!"e primary aim of wor%ersF education is to ena#le t"e wor%er to put "is finger on pro#lems confronting "im in "is social groupI "e must ac)uire a certain culture so t"at in "is capacity of an individual "e can locate "is proper place wit"in "is own trade and milieuI "e must understand #ot" "is position in t"e enterprise as well as t"e role of t"e enterprise itself wit"in t"e general framewor% of national and economic developmentI "e must %now w"at man represents and "ow "e s"ould #e"ave in society$ family$ neig"#or"oods$ wor%place and nation. !raining programmers will stem logically from t"e foregoing t"e wor%ers8 place in society$ t"e study of "is rig"ts and duties$ t"e need for trade unionism and its role$ %nowledge of t"e underta%ing and of economic principles$ la#our legislation$ "uman relations wit"out losing sig"t of a few #asic essentials suc" as "ow to write a letter or a report$ to calculate a wage s"eet$ to contri#ute effectively in meetings$ tec. All of w"ic" will "elp to e)uip "im to express and put to practical use t"e ideas$ experience and teac"ing receivedF. !"e wor%ers8 Education -eview (ommittee in ,ndia "as laid down t"e following o#'ectives. !o e)uip all sections of wor%ers$ including rural wor%ers$ for intelligent participation in social and economic development of t"e nations in accordance wit" its declared o#'ectivesI !o develop among wor%ers a greater understanding of t"e pro#lems of t"eir social and economic environment$ t"eir responsi#ilities towards family mem#ers and t"eir rig"ts and o#ligations as citiGens$ as wor%ers in industry and as mem#ers and officials of t"eir trade unions. !o develop leaders"ip from among t"e ran% and file of wor%ers t"emselvesI !o develop strong$ united and more responsi#le trade unions t"roug" more enlig"tened mem#ers and #etter trained officialsI !o strengt"en democratic process and traditions in t"e trade unions movementI and !o ena#le trade unions t"emselves to ta%e over ultimately t"e function of wor%ers8 educations.

&ontents of -or$er.s 'ducation !"e contents of wor%ers8 education cannot #e put in water9tig"t compartment as t"e cultural outloo%$ "istorical #ac%ground$ availa#ility of resources in men$ material and

money and stage of economic development differs from country to country. But in general t"e scope and contents of wor%ers8 education s"ould #e determined according to t"e environment$ employment and union development. ,t s"ould include different types of education ranging from general education to trade union education covering vocational guidance$ tec"nological training$ literacy and artistic studies and t"e manner of conducting conferences and seminars. !"e content of wor%ers8 education s"ould #e #uilt around core su#'ects suc" as ,ndustrial Economics 3particularly organiGational and financial aspects of industrial units4$ ,ndustrial and Social syc"ology$ ,ndustrial Sociology$ 1a#our Economies$ "ilosop"y$ co9operative and (ommunity 0rganisation. !"e #road contents s"ould cover. 0rganisation$ recruitment of mem#ers$ farming of constitution$ registration$ collection of dues$ maintenance of accounts$ correspondence and ot"er office wor%$ su#mission of returns$ propaganda$ of researc" memoranda$ fig"ting cases in la#our courts$ negotiations wit" employers and t"e States. -elevant economic and social pro#lems$ suc" as grievance procedures$ met"ods of collective #argaining$ determination of wages$ productivity pro#lems$ economics of employment and social security$ planning for economic development$ indices of wages$ and consumer prices$ la#our statistics$ provisions of social and la#our legislation$ la#or welfare and international la#our pro#lems. Wit" emp"asis on trade union leaders"ip$ wor%ers8 education s"ould also deal directly wit" areas li%e "istory t"e trade union movement$ structure$ constitution$ administration and met"ods of organisation of trade unionsI communication wit" mem#ers$ delegation of aut"ority$ elections of representativesI aims and o#'ective of trade unions and met"ods of ac"ieving t"eseI "olding of meetings and writing of reportsI trade union financeI general and political fundsI adult$ accounts control and safeguard of t"e fundsI mutual insurance$ welfare wor% of trade unions$ community servicesI cultural$ recreational$ educational and cooperative activitiesI union management relations$ implementation of laws and awardsI stri%es and demonstrationsI Union9State relationsI la#our administration and policyI ,nter9 union relationsI social and la#our legislation and practices concerting t"eir legal rig"ts and o#ligations.

Teaching Techni*ues

!"e wor%ers8 education courses may #e conducted in t"e campus itself. !"e wor%ers may also #e given practical training in t"e field. Extension wor% may also form a part of t"e programme of wor%ers8 educations. !"e tec"ni)ues employed in imparting wor%ers8 education are. 3i4 t"e general lectures$ delivered in simple$ direct and unam#iguous languageI 3ii4 discussions on t"e topicsK issues involvedI 3iii4 arranging study groupsI and 3iv4 correspondence courses. Modern met"ods of teac"ing are adopted$ and for t"is purpose a num#er of educational aids and devices are used / li%e films$ films strips$ radio and recording$ flip card$ pictorial c"arts$ flas" cards$ posters$ flannel grap"s$ maps and diagrams$ wall newspapers$ etc. Demonstration$ special lectures$ tests seminars$ de#ates$ role9playing$ arranging symposia$ case studies and two9way communication met"ods are also encouraged. Educational visits and study tours of t"e trainees to union9offices$ factories and multipurpose pro'ects are important aspects of wor%ers8 education. !"e results of wor%ers8 education programmes "ave not #een very impressive and leaves a vast scope for its improvement. !"e success of t"e programme depends to a great extent on responsive cooperation from t"e unions and management$ #esides active and ent"usiastic participation #y t"e wor%er9teac"ers$ ran% and file wor%ers$ and trade union leaders.

-or$er.s Training !ill recently$ ,ndia "ad #een suffering from acute s"ortage of s%illed and trained wor%ers for a num#er of occupations and industriesI and ma'ority of t"e wor%ers suffered from low efficiency$ w"ic" necessarily meant t"at t"e rate of s%ill formation a"s #een low. Besides$ factors li%e social attitude towards industrial wor%$ differentials #etween "e income of s%illed and uns%illed wor%ers$ and t"e training and educational facilities availa#le in t"e country$ t"e educational system "as also #een responsi#le for t"is state of affairs. Bringing a#out any c"ange in t"ese is an up"ill tas%. But for rapid industrial development$ t"e provision of training facilities for t"e wor%ers is t"e great need of "e "our. !"is training pre9supposes a sound #asis of universal literacy$ proper planning an utiliGation of trained personnel and utiliGation of trained personnel$ and properly designed training institutes. ;eedless to say t"at trained leads to "ig"er efficiency and increased productivity$ less waste$ reduced supervision$ "ig"er employee earning$ reduced

accidents$ increased organiGational sta#ility and flexi#ility$ "eig"tened morale and vertical 'o# mo#ility. Training #chemes of D+(+'+T+ !"e Directorate General of Employment and !raining "as evolved various training programmes for t"e young persons. Suc" programmes comprise. :. (raftsmen8s !raining rogrammes <. (raft ,nstructor !raining =. Advanced 6ocational !raining >. 2oremen8s !raining ?. Apprentices"ip !raining Sc"emes @. art9time !raining to ,ndustrial Wor%ers

A. 6ocational !raining rogramme for Women %ra3t&en8s trainin, !o provide training to young men and women in t"e age9group :?9<?$ t"e D.G.E.!. "as set up ,ndustrial !raining 3it is4 all over t"e country. !o promote t"e efficiency of craftsmen trainees$ aptitude tests "ave #een introduced w"ic" are applied for t"e selection of craftsmen / !rainees in engineering trades and one year for non9engineering trades. ;ational !rade (ertificates are issued to t"e successful candidates.

%ra3t instru!t rs8 trainin, !"e central training institutes train craft instructors re)uired #y t"e ,!,s and t"e apprentice training esta#lis"ments. 2or example$ training in c"emical group of trades is provided at Bom#ay institute$ and in "otel catering at t"e 7ydera#ad ,nstituteI t"e institutes at +anpur$ Bom#ay and 1ud"iana provide training in printing$ weaving and farm mac"ines trade. Ad*an!ed * !ati nal trainin, s.ste&

Under t"is system$ training of "ig"ly s%illed wor%ers and tec"nicians are provided in a variety of advanced and sop"isticated s%ills not availa#le from ot"er vocational training programmes. < re&en8s trainin, 2or t"e training of foremen an institute was set up. !raining is provided to t"e existing and potential s"op foremen and supervisors in t"eoretical and managerial s%ills and wor%ers from industry in advances tec"nical s%ills. A''renti!es$i's trainin, s!$e&e Under t"e Apprentices Act$ :C@:$ employees are re)uired to engage apprentices. 2or suc" apprentices$ training is provided in #asic trades and on t"e 'o#. PartCti&e trainin, 3 r industrial 9 r7ers 2or industrial wor%ers$ part9time evening classes are organiGed to improve t"eir standards of wor%ing. ,ndustrial wor%ers$ possessing two years wor%s"op experience in a particular trade and sponsored #y t"eir employers are eligi#le for admission to t"is course. 4 !ati nal trainin, 'r ,ra&&e 3 r 9 &en !"e ;ational 6ocational !raining ,nstitute for Women provides instructor training$ #asic training and advanced training in selected trades particularly suita#le for women. But$ su#stantial training capacities "ave remained unutiliGed. 2urt"er$ t"e training programmes do not ta%e into account local and regional needs. !"e )uality of t"e training programme need to #e increased a large extent.

%eview 6uestion :. W"at is wor%ers8 educationL W"at are its o#'ectivesL <. Explain t"e contents and teac"ing tec"ni)ues of wor%ers8 educationL =. Briefly explain various sc"emes of wor%ers8 training.

UNIT 4I
1;+ Industrial 7ealth and #ocial #ecurit

1<+

'm"lo ee #afet !rogramme

13+

'm"lo ee &ounselling

1=+

&onflict Management

1>+

6ualit &ircles

Less n 1" Industrial +ealt$ and S !ial Se!urit.


!"e greatest activity over t"e past few decades$ in so far as employees #enefits are concerned$ "as occurred in t"e areas of "ealt" and social security. ,ndustrial "ealt" is comparatively an new system of pu#lic "ealt" and preventive medicine practiced among industrial groups wit" t"e specific o#'ect of improving t"eir "ealt" and preventing t"e occurrence of disease as well as in'ury to t"em. ,n t"e traditional sense$ "ealt" implies Ht"e mere a#sence of an ascertaina#le disease or infirmityF$ #ut in its present connotation$ "ealt" is Ht"e outcome of t"e interaction #etween t"e individual and "is environmentF. According to suc" a dynamic approac"$ industrial "ealt" may comprise measures for 3i4 protecting t"e wor%ersKemployees against any "ealt" "aGards arising our of t"eir wor% or t"e condition under w"ic" it si carried onI 3in4 fostering t"e adaptation of wor%ers to t"e 'o#s and wor% environment and t"us contri#uting towards t"e employees8 p"ysical as well as mental ad'ustmentsI and 3iii4 promoting t"e esta#lis"ment and maintenance of t"e "ig"est possi#le degree of p"ysical mental and social well9#eing of t"e wor%ers. A large segment of t"e adult male population and )uite a num#er of adult females too$ spend a considera#le portion of t"eir wor%ing time today in an industrial setting w"ere t"ey are employed. ,ndustry exposes t"e employee to certain "aGards t"e may affect "is "ealt" adversely. ,t is wit" t"e intention of reducing suc" "aGards and improving t"e employee8s "ealt" t"at t"e discipline of industrial "ealt" "as come into #eing as a #ranc" of pu#lic "ealt". !"e introduction of industrial organisation may contri#ute effectively to a positive reduction in employee a#senteeism and turnover as well as discontent and indiscipline among t"e employees and t"us may improve t"eir morale$ wor% performance and productivity. 0#viously employees in t"e modern industrial setting are su#'ect to various types of "ealt" "aGards and occupational diseases. According to one view$ t"e normal "ealt" "aGards may #e caused #y9 Chemical substances at t"e wor% place suc" as car#on monoxide$ car#on dioxide$ sulp"ur dioxide$ sulp"uric acid$ acetic acid etc. W"en t"ey are

in"aled or a#sor#ed #y t"e s%in w"ic" may result in acute or c"ronic sic%ness including respiratory or "eart diseases$ cancer and neurological disorders t"ey may s"orten life expectancyI =iological factors including sic%ness caused #y #acteria$ fungi$ viruses$ dietary deficiencies$ allergies$ emotional strains due to fear$ anxiety etc. and &nvironmental factors including illness due to radiation$ noise$ vi#rations and s"oc%s or atmosp"eric conditions suc" as inade)uate ventilation$ lig"ting arrangement or very "ig" or low temperature at t"e wor% place.

W"ile exposure of wor%ers to radiation may cause cataract$ vi#ration and s"oc%s may cause nerve in'ury and inflammation of tissues of "e 'oints of t"e operative8s "ands and improper lig"ting may impair t"e employee8s vision$ it "as #een pointed out t"at many manufacturing processes are accompanied #y suc" noise as is capa#le of not only impairing t"e "earing of a wor%ers #ut also of ma%ing it difficult for "im to "ear any warning of an impending danger. Besides suc" "ealt" "aGards$ various occupational diseases may also #e caused as a result of t"e p"ysical conditions and t"e presence of poisonous and non9poisonous dust and toxic su#stances in t"e atmosp"ere during t"e process of manufacturing or extraction. Suc" diseases are usually slow to develop and generally cumulative in t"eir effects. Eac" diseases are usually slow to develop and generally cumulative in t"eir effects. ,n ,ndia$ a list of suc" diseases are appended to sections BC and CD of t"e 2actories Act$ :C>B as well as t"e Wor%men8s (ompensation Act$ :C<= w"ic" includes lead poisoning$ p"osp"orous poisoning$ arsenic poisoning$ c"orome ulceration$ ant"rax silicosis$ primarily cancers of s%in$ dermatitis due to action of mineral oil$ as#estosis$ toxic anemia$ #egassoise etc. #ocial #ecurit Broadly spea%ing$ financial and social insecurity means ina#ility or lac% of capacity of a person or individual to protect "imself from t"e ris%s of unemployment$ sic%ness$ industrial accidents or disa#ility$ old age and ot"er contingencies. !"us lin%ed wit" pro#lems of employees safety and industrial "ealt" of wor%ers is t"e )uestion of provision of security to t"em #y t"e society or t"e government. ,n industrial underta%ings$ wor%ers are often su#'ect to periodic unemployment due to sic%ness$ industrial accidents$ old age$ or on account of financial sic%ness or not so9 efficient condition of #usiness. !"ese may incapacitate a wor%er temporarily or permanently and lead to unemployment causing financial misery and ot"er conse)uences.

0rdinarily$ wor%ers do not "ave financial resources to cope up wit" t"ese pro#lems or alternative means of liveli"ood. ,n t"ese circumstances it is o#ligatory on t"e part of industrial esta#lis"ment and t"e government to "elp t"ese wor%ers and provide t"em security or w"at we call social security. Social security is a system of protection or support provided #y t"e society or government to wor%ers and t"eir families in time of sudden calamity$ sic%ness$ unemployment$ in'uries$ industrial accidents$ disa#lement$ ole age or ot"er contingencies. Social security programmes include / Medicare and insurance #enefits Medical "elp at t"e time of in'ury and accident and provision financial compensation and relief. ension in case of disa#lement Unemployment insurance or allowance Maternity #enefits Deat" payments and family pension -etirement #enefits or old age relief etc.

#ocial #ecurit !rogrammes in India ,n pre9independence period$ a #eginning was made in social security wit" t"e passing of t"e Wor%men8s (ompensation Act$ :C<=. After independence$ t"e government of ,ndia "as enacted a num#er of laws and "as introduced and implemented many sc"emes to provide social security to industrial wor%ers. Some important acts and sc"emes in t"is context are discussed #elow. 6 r7&en8s ! &'ensati n a!tD 1?"3 Wor%men8s (ompensation Act$ passed #y t"e Government of ,ndia in :C<=$ #ecame effective from 5uly :$ :C<>. !"e act provided for payment of compensation to wor%men and t"eir dependents in case of in'ury$ accident and some occupational diseases arising our of and in t"e course of employment and resulting in disa#lement and deat". !"e act is applica#le to railway men and persons wor%ing in factories$ mines$ plantations$ mec"anically propelled ve"icles$ construction wor%s and certain ot"er "aGardous occupations. !"e rate of compensation ranges from -s. <D$DDD to -s. CD$DDD in case of

deat" and from -s. <>$DDD to -s. :$:>$DDD in case of permanent disa#lement depending on wages of wor%men. ,n case of partial disa#lements$ t"e rate of compensation is ?D per cent of t"e wages of wor%men and is to #e paid for a maximum period of ? years. !"e act$ "owever$ does not apply to wor%men w"o are covered #y t"e Employees State ,nsurance Act$ :C>B. Maternit. #ene3it a!tD 1?-1 !"e Government of Mum#ai was t"e first one w"ic" passed Maternity Benefits Act in :C<C. ;ow$ suc" laws are in force in almost every state of t"e country. !"e Maternity Benefit Act$ :C@: passed #y (entral Government regulates employment of women in certain esta#lis"ments for certain period #efore and after c"ild #irt" and provides for maternity and ot"er #enefits. !"e Act covers female wor%s in mines$ factories$ circus industry$ plantations$ "otels$ restaurants and s"ops and esta#lis"ments employing ten or more persons. !"ere is no wage limit for coverage under t"e Act. !"e act entitles t"e female wor%ers to get a#out = mont"s or :< wee%s maternity leave wit" full wages. 7owever t"is act is not applica#le to t"ose female wor%ers w"o are covered #y Employees State ,nsurance Act$ :C>B. E&'l .ees state insuran!e a!tD 1?4; 0ESI s!$e&e1 !"e Employee State ,nsurance Act$ :C>B is t"e most important compre"ensive sc"eme for providing social security #enefits. !"e sc"eme w"ic" was originally framed to cover perennial i.e. non9seasonal factories using power and employing <D or more persons "as #een gradually extended to smaller factories$ "otels$ restaurants$ cinemas$ s"ops$ etc. employing <D or more persons. ,t covers employees drawing wages upto -s. :@DD per mont". !"e Act provides for medical care in %ind and cas"$ #enefits in t"e contingency of sic%ness$ maternity employment in'ury and pension for dependents on t"e deat" of t"e wor%er #ecause of employment in'ury. 2ull Medicare and "ospitaliGation is also #eing progressively made to mem#ers of family of "e in'ured persons. !"e act aims at providing compulsory and contri#utory "ealt" insurance coverage to wor%ers$ 2or t"e purpose$ t"e government "as set ups employees8 State ,nsurance fund administered #y an autonomous Employees8 State ,nsurance (orporation. 2inances for t"e fund come from t"e contri#ution from employers and employees and government grants. Employees "ave to contri#ute compulsorily a nominal sum$ a small percentage of t"e wages towards t"is insurance coverage. resently employers are re)uired to contri#ute :.<? per cent of t"eir total wage #ill towards t"e fund. !"ere is a networ% of "ospitals$ annexes and dispensaries esta#lis"ed at important industrial centers t"roug"out t"e country to provide medical care and ot"er facilities to wor%ers. !"e sc"eme covers a#out @< la%"s employees.

E&'l .&ent 'r *ided 3und !"e Employment rovident 2und and Miscellaneous rovision Act$ :C?< provides retirements #enefits suc" as provident fund$ family pension and deposit9lin%ed insurance. !"is act covers esta#lis"ments employing <D or more persons and is restricted to t"ose drawing wages up to -s. =?DD per mont" and is applica#le to a#out :A? industries or classes of esta#lis"ments. !"e minimum rate of contri#ution under t"e act presently is B.== per cent. 7owever in respect of CB industries or classes of esta#lis"ment employing ?D or more persons$ it "as #een en"anced to :D per cent. Under t"e act$ t"is contri#ution is deducted from t"e wages of employees and deposited in t"e 2und set up for t"e purpose. !"e employers "ave to ma%e a matc"ing contri#ution. !"e amount of provident fund "eld in employee8s name along wit" interest is paid to "im at t"e time or "is retirement. Deat$ relie3 A Deat" -elief 2und was esta#lis"ed under t"e Employee rovident 2und Sc"eme in :C@> to provide financial assistance to nominees or "eirs of deceased mem#ers of unexempted esta#lis"ments getting maximum salary of -s. :?DD per mont" at t"e time of deat". !"e amount was restricted to t"e sum e)ual to t"e amount of 2 #alance falling s"ort of -s. <DDD. E&'l .ees de' sitClin7ed insuran!e s!$e&esD 1?5- as a&ended in 1??A Under t"is sc"eme$ in case of deat" of an employee$ t"e person entitled to received "is accumulated provident fund gets an additional insurance amount e)ual to average #alance in 2 account of t"e deceased during t"e preceding twelve mont"s provided t"at suc" average #alance was not less t"an -s. ?DD during t"e said period. !"e maximum amount to #e paid is restricted to -s. <?$DDD and t"e employees are not re)uired to ma%e any contri#ution to it. <a&il. 'ensi n s!$e&e !"is sc"eme was introduced in :CA:. ,t provides long9term financial security to families of industrial wor%ers in case of t"eir premature deat". ,t is made out of t"e Employees rovident 2und to w"ic" t"e government ma%es additional contri#ution for t"e purpose. 2amily pension ranges from -s. <<? to -s. A?D per mont" depending on t"e period of mem#ers"ip. resently family pensioners are also entitled to assurance #enefits of -s. ?DD to meet immediate expenses. Retire&entC!u&C9it$dra9al #ene3it

A mem#er is entitled to wit"drawal #enefit on retirement or superannuation at t"e rates ranging #etween -s. ::D to -s. >DD 3for one years mem#ers"ip4 and from -s. CDDD to -s. :CB<? 3for >D years mem#ers"ip4 depending upon t"e pay range of t"e mem#ers and lengt" of "is mem#ers"ip. Pa.&ent 3 ,ratuit. a!tD 1?5" !"is Act is applica#le to factories$ mines$ oil9fields$ plantations$ ports$ railways$ automo#iles underta%ings$ companies$ s"ops etc. !"e act covers employees receiven wages upto -s. <?DD per mont". !"e act provides for payment of gratuity at t"e rate of :? days wages for eac" complete year of service su#'ect to a maximum of -s. ?D$DDD. ,n suc" case of seasonal esta#lis"ments gratuity is paya#le at t"e rate of seven days8 wages for eac" season. ersonnel departments can play an important role in ensuring safety$ "ealt"$ security and welfare of t"e wor%ers engaged in t"e organisation. !"e first t"ing t"ey can do is to ma%e employees aware of t"e safety measures$ rules and regulation$ and t"eir rig"ts concerning compensation paya#le to t"em in case of accidents and in'uries and a#out t"e provisions of various social security measure in force for t"eir welfare. !"is can #e done #y organiGing training courses. !"ey can "elp in reducing accidents and t"us$ lower t"e cost of wor%er8s compensation #y persuading t"e management to provide a safe wor%ing environment. An important implication for t"e personnel department is t"at it s"ould provide ade)uate t"e reasona#le financial and security #enefits and facilities. ,t s"ould also comply wit" various legal rules and regulation "onestly and fait"fully.

Less n 13 E&'l .ee Sa3et. Pr ,ra&&e


A safe "ygienic wor% environment is t"e #asic and common re)uirement of every employee irrespective of "is position or status in t"e organisatoin. And it is t"e moral as well as legal responsi#ility of every employer to provide a wor%place to its employees w"ic" is not "aGardous to t"eir p"ysical or mental "ealt". 7uman engineering or ergonomics w"ic" t"e study of wor% and of wor% met"ods can "elp t"e organiGations in protecting t"eir employees against t"e dangers of accidents and industrial diseases. 6ery minor accidents may create ma'or industrial disputes. !"erefore$ designing and operations of man$ mac"ine environment scientifically will ensure mental and p"ysical rest to t"e "uman #eings. Scientific management$ t"erefore$ is a necessity for t"e organiGations at it will strengt"en industrial relations and will en"ance 'o# satisfaction. E&'l .ees Sa3et. and Industrial A!!idents ;o industrial organisation can ta%e t"e su#'ect of employee safety in a casual manner #ecause fre)uent industrial accidents will result in decreased production and monetary loss due to adoption of compensatory measures imposed #y law. All industrial accidents can "ardly #e ascri#ed to c"ance factor t"oug" suc" a possi#ility cannot #e ruled out completely in every accident. Sometimes it is situational factor and on ot"er t"ere are individual factors w"ic" are responsi#le for accidents. An industrial accident may #e an event w"ic" ta%es place wit"out foresig"t or expectation and results in some personal in'ury or damage to property. 2actories Act$ :C>B defines accident as Han occurrence in an industrial esta#lis"ment causing #odily in'ury to a person w"ic" ma%es "im unfit to resume "is duties in t"e next >B "oursF. !o #e considered as an accident it must ta%e place in t"e course of employment in an industrial esta#lis"ment. %auses 3 industrial a!!idents ;ature and causes of accidents #roadly vary form organisation to organisation. Basically industrial accidents will arise eit"er due to tec"nical faults or due to "uman follies or errors. !"erefore$ t"e causes of accidents may #e attri#uted to wor% related causes and wor%er related causes. +ork-related causes: Unsafe wor%ing conditions are t"e prime cause for any industrial accident and t"ese include all engineering deficiencies. !"ese mainly include improper lig"ting$ inade)uate safety devices$ polluted wor% place$ poor mac"ine guarding$ and unsafe and careless "ouse%eeping. !"ese factors will

create psyc"ological and p"ysical pro#lems for t"e wor%er and will invite industrial accident. +orker-related causes: !"ese are "uman factors responsi#le for accidents due to t"eir unsafe acts. 1ac% of ade)uate s%ill or %nowledge in "andling t"e mac"ine$ distur#ed mental condition$ neglecting safety device and instruction$ using unsafe mac"ine$ wor%ing at unsafe speed are some of t"e causes due to w"ic" wor%ers #ecome victims of industrial accidents.

Machiner for !reventing Industrial 0ccidents Employees8 pressure for "ig"er production$ efficiency and profits can result in unsafe wor%ing conditions and wor% #e"aviour. Accidents always do not ta%e place #y c"ance. 0#viously t"e first step for t"e accident prevention mac"inery will #e to isolate suc" situational factors w"ic" may lead to accidents. ,n addition to it$ t"e organiGations s"ould "ave strong voluntary mac"inery for t"e prevention of accidents and s"ould follow strictly t"e guidelines issued #y Government. !"e mac"inery for prevention of industrial accidents can #e studied under two "eads / voluntary mac"inery and regulatory mac"inery. 4 luntar. &a!$iner. As t"e name suggests$ t"ese measures include t"e ways implemented #y t"e management voluntarily and not imposed #y t"e law. 7ere management will "ave to #e cautious from t"e very selection of t"e employees. !oday various psyc"ological tests are availa#le to test t"e a#ility and suita#ility of t"e individual for a particular 'o#. 0rganisatoins may develop t"eir own safety programmes and en'oyed safety officers. Safety training s"ould #e provided to t"e wor%ers on regular intervals. 2urt"er to generate t"e interest of wor%ers in safety programme$ t"ey s"ould #e involved in t"em. !"ere s"ould #e proper record of t"e accidents w"ic" too% place in t"e past so t"at management is a#le to concentrate on accident prone areas. Employees s"ould #e motivated to develop safety #e"aviour and follow safety rules. ,f t"e voluntary mac"inery for t"e prevention of industrial accidents is strong enoug"$ t"e management per"aps may not re)uire to follow statutory laws. Re,ulat r. &a!$iner. ,nternational 1a#our 0rganisation 3,.1.0.4 is t"e #ody w"ic" is wor%ing for employees8 safety$ "ealt" and welfare since long. !"e latest effort in t"is direction was t"e 0ccupational Safety and 7ealt" (onvention$ ;o. :??$ adopted in :CB:. Government of ,ndia also too% initiative in enacting protective provision in its various legislations.

Wor%men8s (ompensation Act :C<=$ 2actories Act$ :C>B. !"e employees State ,nsurance Act$ :C>B and ersonal ,n'uries 3(ompensation ,nsurance4 Act.$ :C@= are t"e main legislations passed #y t"e Union Government w"ic" deal wit" occupational safety provisions in t"e industrial organiGations. W"ereas t"e 2actories Act prescri#es measures for avoidance of industrial accidents$ t"e rest of t"e t"ree prescri#ed t"e lia#ility of employer to pay compensation to t"e wor%ers for t"e in'uries caused #y industrial accidents. !"e details of a few of t"ese acts and sc"emes are given later in t"is ("apter Sec. <: to =B of 2actories Act provide for safety provisions in t"e industrial organisatoin. !"e act provides for fencing of mac"inery$ recruitment of trained and adult male wor%ers$ minimum distance to #e maintained form self acting mac"ine$ pro"i#ition of women and c"ildren from wor%ing on moving mac"ines and specific provisions for protection of eyes against glare$ dangerous fumes$ explosive dust$ gas tec. ,n addition to t"ese$ State Governments are empowered to supplement t"e provisions to furt"er strengt"en t"e safety of industrial wor%ers. !"e Mines Act :C?< contains rules and regulations for providing safety$ "ealt" and welfare or wor%s employed in mines. !"ese rules are enforced #y t"e Directorate General of Mines Safety w"ose main functions included inspection of mines$ investigation of all fatal accidents and certain serous accidents depending upon t"eir gravity$ grant of statutory permission$ exemptions and relaxation in respect of various mining operations$ approval to mines safety e)uipment$ appliances and material etc. As industrial safety is #ot" an end and a means$ t"erefore$ ade)uate measures s"ould #e ta%en #y t"e employees to provide safe and secure wor%9place to t"e wor%ers. &om"anies of #afet #ervice Among t"e many components of a safety service t"e following "ave proved effective w"en applied in com#ination. A'' int&ent 3 sa3et. 33i!er ,n #ig organiGations$ t"e appointment of a safety officer to "ead t"e safety departments is a Emust8. ,n small organiGations$ t"e personnel manager may loo% after t"e functions of t"is department. !"e "ead of t"e safety department$ w"o is usually a staff man$ is granted power to inspect t"e plant for unsafe condition$ to promote sound safety practices 3t"roug" posters and safety campaigns4$ to ma%e safety rules$ and to report violations to t"e plant manager. 7is functions also include analyGing t"e causes of accidents$ maintaining accident statistics and records$ purc"asing safety e)uipments$ and so on. ,n some organiGations$ t"e relations"ip #etween t"e "ead of t"e safety departments and t"e line manager may #e functional$ t"at is$ t"e "ead "as t"e aut"ority to issue and enforce orders in "is functional field of safety.

Su'' rt #. line &ana,e&ent !"e "ead of t"e safety department$ w"et"er en'oying a staff or a functional position$ #y "imself$ cannot ma%e a plant safe. 7is appointment lulls line management into assuming t"at all its safety pro#lems "ave #een solved. !"is "ig"lig"ts t"e importance of ma%ing safety a line responsi#ility. ,t is said t"at safety is essentially a line pro#lem. 1i%e all ot"er line management pro#lems it also involves )uestions of motivation$ enforcement of standards and wor%ing t"roug" groups. 0ne sure way to win line people8s support is to encourage t"em to participate on safety committees$ on "ouse%eeping inspections and investigations of accidents. Eli&inati n 3 $a/ards Alt"oug" complete elimination of all "aGards is virtually an impossi#ility #ut following steps ca #e ta%en to "elp reduce t"em. :ob safety analysis: All 'o# procedures and practices s"ould #e analyGed #y an expert to discover "aGards. 7e s"ould t"en suggest c"angers in t"eir motion patterns$ se)uence and t"e li%e. 2or example$ "e may discover t"at a particular reac" over a mac"ine could easily result in a loss of #alance and in'ury or "e may discover t"at a corner of a fixture is s"arp enoug" to cut t"e "ands of t"e wor%er. 0n t"e #asis of 'o# safety analysis t"e expert s"ould also determine any special )ualifications needed #y an individual to perform t"e 'o#. !"ese )ualifications may #e later incorporate in t"e 'o# specifications. ,lacement: a poorly placed employee is more apt to incur in'ury t"at a properly place employee. Employees s"ould #e placed on 'o#s only after carefully estimating and considering t"e 'o# re)uirements wit" t"ose w"ic" t"e individual apparently possesses. ,ersonal protective e<uipment: Endless variety of personal safety e)uipment is availa#le nowadays w"ic" can #e sued to prevent in'ury. %afeguarding Machinery: Guards must #e securely fixed to all power driven mac"inery. Material handling: !"oug" often ignored$ t"e careless "andling of "eavy and inflamma#le materials is an important source of several in'uries and fire.

#and tools: Minor in'uries often result from improperly using a good tool or using a poorly designed tool. !"erefore$ close supervision and instruction s"ould #e given to t"e employees on t"e proper tool to use and t"e proper use of t"e tool. Maintenance: Worn9out mac"inery$ mac"inery guards and attac"ments$ old and out9of9date fire fig"ting e)uipment also contri#ute to serious "aGards. !"ey often give employee a false sense of security and protection. *ayout and design: A good plant layout and design can go long way in preventing accidents$ construction of fireproof walls$ ade)uate fire escapes$ aisles$ and storage space$ doorways and passageways$ location of "aGardous items a#ove employee reac"$ provision for non9s%id floor$ protection of radiators #y grills can do muc" to reduce accidents. #ousekeeping: Good "ouse%eeping does not include only tidy and clean floors and mac"inesI ot"er items suc" as dirty windows$ dusty lig"ts and dirty reflectors w"ic" reduce t"e effectiveness of lig"ting can also result in employee in'ury. 'alls: Anot"er ma'or source of industrial in'ury is tripping over su#'ects$ slipping on floors and falling on to anot"er level. Many dangers lur% in stac%ing and storing. iles may not #e properly constructed and may su#se)uently collapse. eriodic inspection can "elp prevent many accidents stemming directly from t"ese causes.

Sa3et. trainin,D edu!ati n and 'u#li!it. Safety training is concerned wit" developing safety s%ills$ w"ereas safety education is concerned wit" increasing t"e employees8 %nowledge a#out accident prevention. u#licity in t"e form of contest programmes$ safety companies$ suggestion awards$ and various audio9visual aids can #e considered as a form of employee education. Safety training programmes s"ould #e derived from an analysis of training needs. !"is s"ould refer to t"e "aGards generally prevent in t"e company as well as t"e specific "aGards associated wit" individuals 'o#s. !raining to deal wit" t"e general "aGards can #e given at t"e time of induction. Specific "aGards can #e covered at t"e time of 'o# training. Sa3et. ins'e!ti ns An inspection #y a trained individual or a committee to detect evidence of possi#le safety "aGards 3suc" as poor lig"ting$ slippery floors$ unguarded mac"ines$ faulty electrical installations$ poor wor% met"ods and disregard of safety rules4 is a very effective device to promote safety. Safety inspections can ta%e any one of t"e following four forms.

,eriodical safety audit: 7ere c"ec%lists are prepared of t"e points to #e covered and an inspection programme is planned to deal wit" t"em at regular intervals. We give #elow a sample form t"at can #e used for t"is purpose.

Audit area or DepartmentNNNN ("ec% oints Symptoms

,nspected #yNNNNNNN.. (auses Action -ecommended

DateNNNNNN.. -esponsi#ility for Action Date for (ompletion

The $a)et/ a'(it )or" >andom spot check: Spot c"ec%s can #e made in eac" area or department on a random sample #asis or to cover special pro#lems$ suc" as t"e inade)uate use of protective clot"ing. 7ere t"e inspector may simply enumerate t"e unsafe acts or conditions o#served #y "im. An example of t"e form t"at can #e used for t"is purpose is given #elow. ,nspection carried out #y DateNNNNNNN. Unsafe Act or (ondition Dept. A ;um#er of 0#servation Dept. B Dept. (

Ran(o" in$-ection )or" 5aily checks: Supervisors can #e re)uired to ma%e daily c"ec%s of safety points in t"e departments under t"eir control w"ic" s"ould list t"e pro#lem conditions and indicate t"e action to #e ta%en eit"er #y t"e supervisor "imself$ management$ or t"e safety advisor. An example for t"e form to #e used for t"is purpose is given #elow. SupervisorNNNNNN DateNNNNNNN.

DepttNNNNNNNN

,tem

(ondition

,mmediate action ta%en

2uture action proposed

Dai / check )or" >egular inspection: !"is may #e carried out w"en re)uired #y legislation or #y insurance companies$ of #oilers$ pressure vessels$ pipelines$ dangerous processes$ lifts$ "oists etc.

In*esti,ati n 3 a!!idents By determining t"e reasons for an accident$ appropriate action can #e ta%en to prevent similar future occurrences. ,nvestigation of an accident usually involves t"e following steps. Define t"e pro#lem or nature of accident (ollect all relevant facts Determine t"e cause of t"e accident Develop several alternatives to prevent recurrence Select and implement t"e most effective alternative Suggest disciplinary action against t"e employee w"ose actions were formed deli#erately unsafe or negligent.

An example of a simple investigation report is s"own #elow. DepartmentNNNNNNN.. ;ame of in'uredNNNNNNNNN. Date P !ime of in'uryNNNNNNNNNN.. Date P !ime of return to wor%NNNNNNNN W"ere and "ow die t"e accident occurL

;ames of in'ury9999999999999999999999999999999999999999999999999999999999999999999999999999999999 ;ames of witnesses99999999999999999999999999999999999999999999999999999999999999999999999999999 (lassification of accident. !ype of accident 1ocation of accident Severity of in'ury

Measures ta%en and proposed to avoid repetition SignatureNNNNNNNNN Measurement of safety 6arious rates and ratios can #e computed to indicate to employees and management t"e progress t"e safety departments is ma%ing in its 'o#. !"ese rates can #e computed periodically$ say$ on a )uarterly #asis$ #ot" for t"e company as a w"ole and for eac" line departments. !oo important measures of safety widely recogniGed and used in #usiness are as follows. 2re)uency -ates. !"is is expressed as t"e num#er of lost9time accidents per million man9"ours wor%ed. !"e formula to calculate t"is rate is. DateNNNNNN..

A lost9time accident is one w"ic" ma%es an employee una#le to wor% on one or more days following t"e accident. Security -ate. !"is expressed as t"e num#er of days lost due to accidents per million man9"ours wor%ed. !"e formula for t"is is.

New Techni*ues in 0ccount !revention !"ree new tec"ni)ues of accident prevention w"ic" "ave recently #een developed in industrially advanced courtiers of t"e West are. Damage control$ 7uman engineering or ergonomics and

Systems safety

Da&a,e ! ntr l 7einric" in "is #oo%$ ,ndustrial Accidents revention$ postulates t"at #efore a given set of circumstances can lead to a lost9time accident$ "ere would #e <C accidents involving minor in'uries and =DD near9accidents involving no in'ury caused #y t"e same set of circumstances. 7owever$ t"is t"eory does not go so far as to accurately predict w"en t"e lost9time in'ury would occur. 1u%ens Steel of t"e United States "ave conducted systematic researc" to evolve a met"od t"at would predict accurately w"en t"e lost9time in'ury would occur. !"eir study concludes "at every accident is preceded #y a series of minor in'uries and incidents w"ic" can #e said to occur in t"e following six steps. At stage one$ t"e situation "as an accident potential only. !"ere ay #e somet"ing unsafe in t"e wor%ing environment or wrong attitude to safety in a certain department. Unsafe acts may occur due to inefficient supervison. At stage two$ t"e accident potential is realiGed and dangerous incidents do in fact occur. But as it is near9miss$ t"ere is no in'ury and no damage to plant or e)uipment. At stage t"ree$ t"e near9miss #ecomes a "it a plant and e)uipment are damaged$ But people are not involved. !"erefore$ no in'ury is recorded. At stage four$ people are involved. !"e accident causes minor in'uries to people as well as possi#le damage to plant and e)uipment. At stage five$ t"e in'uries caused #y an accident are serious enoug" to %eep t"e wor%er away for more t"an t"ree days. At stage six$ t"e in'uries received prove fatal.

1i%ens Steels experts "ave$ t"erefore$ esta#lis"ed t"at ade)uate num#er of sign and indications would #e availa#le to t"ose w"o can %eep t"eir eyes open and mind watc"ful and a documentation of t"ese indicators would "elp exercise a #etter control over t"e situations and factors leading to damage. !"is is damage control. 0ne s"ould note t"at it is not t"e same as conventional accident control. ,t concentrates attention on in'ury potential at t"e pre9in'ury stage. +u&an en,ineerin, r er, n &i!s

Ergonomics is t"e science t"at deals wit" many9sided pro#lems of "ow to fit a 'o# to man8s anatomical$ p"ysiological and psyc"ological c"aracteristic to en"ance "uman efficiency and well9#eing. !"us ergonomics is t"e application of %nowledge of "uman capa#ilities and limitations to t"e design of plant and e)uipment. An e)uipment designed on t"e principles of "uman engineering is far less li%ely to #e a source of accident t"an one designed wit"out suc" considerations. S.ste&s sa3et. A system is an orderly arrangement of components w"ic" are interrelated and w"ic" act and interact to perform some tas% or function in a particular environment. All t"e components of a system are complementary to eac" ot"er. Accidents occur w"en any one part of t"e system fails or malfunctions. (ertainly if t"e entire industrial system were under complete control$ no accident would result. !"e systems approac" gives rise to use of advanced )uantitative tec"ni)ues and computers. %eview 6uestion :. Bring out t"e importance of industrial "ealt" and safety. <. W"at are t"e ma'or sources of "ealt" "aGards and ot"er types of insecurity of industrial employeesL =. W"at types of "ealt" and safety programmes are generally provided to employees in modern industrial organisation.

Less n 14 E&'l .ee % unsellin,


Emotions are part of t"e nature of "uman #eings and emotional upsets are part of t"eir life. ,t is sometimes more disastrous to suppress emotions. !"e emotional pro#lems affect t"e interest of t"e employees "imself and t"e organisatoin in w"ic" "e is wor%ing for. !"e pro#lems may reduce t"eir productivity$ morale and increase a#senteeism. 7ence t"e managers s"ould ta%e steps to maintain a reasona#le emotional #alance of t"eir employees and c"anneliGe t"eir emotions on t"e constructive lines. !"e instrument wit" w"ic" t"e managers can ac"ieve suc" #alance is called counselling. (ounselling is a met"od of understanding and "elping people w"o "ave tec"nical$ personal and emotional or ad'ustment pro#lems t"at usually "as emotional contents t"at an employee wit" t"e o#'ective of reducing it so t"at performance is maintained at ade)uate level or even improved upon. O#2e!ti*e 3 % unsellin, !"e general o#'ective of t"e manager in counselling su#9ordinates is to "elp t"e individual remain effective in "is 'o# and performance of "is duties in t"e organisatoin. !"e man purpose of counselling in industry is to "elp employees in overcoming t"eir neurotic or emotionally #ased illness t"at accounts for a su#stantial part of employee a#senteeism and turnover. Forms of &ounselling (ounselling may #e formal or informal. 2ormal counselling implies t"e direct intention of t"e management to structure a counselling relations"ip #etween t"e employee and "is supervisor or sometimes a counselling specialist wit" ade)uate professional training. Suc" counselling on a systematic and planned #asis may ta%e place at t"ree levels. Supervisor8s counselling wit" "is su#ordinates periodically$ rofessional counselling wit"in t"e organisation #y staff mem#ers of personnel department$ and (ounselling #y psyc"iatrists from inside or outside t"e organisation.

,nformal counselling is done in t"e natural course of "uman relations among individuals w"o "ave mutual confidence and respect for eac" ot"er 'udgments. ,t ta%es place in t"e normal wor% situation wit"out any predetermined sc"edule and is considered as a part of "e routine duty of a manager. *uit often$ t"e su#ordinates does not %now or realiGe t"at counselling is ta%ing place. Techni*ues of &ounselling 0n t"e #asis of tec"ni)ues counselling could #e Directive (ounselling ;on9directive (ounselling (ooperative (ounselling

5irective Counselling centre around t"e counselor. !"e counselor$ after "earing t"e pro#lems of an employee$ decides w"at s"ould #e done and give advice and suggestion to "im to resolve t"e pro#lem. But directive counselling seldom succeeds$ as people do not wis" to ta%e up advice normally$ no matter "ow good it mig"t #e. "ondirective Counselling is t"e process of s%illfully listening t"e emotional pro#lems of an employee$ understand "im and determine t"e course of action to #e adopted to resolve "is pro#lem. ,t focuses on t"e counselee "ence it is called Eclient centred8 ounselling. rofessional counselors usually adopt t"is met"od of ounselling. !"e uni)ue advantage of t"is type of counselling is its a#ility to cause t"e employees reorientation. !"e main stress is to Ec"ange8 t"e person instead of dealing wit" "is immediate pro#lem only. !"e non9 directive counselor deals wit" respect t"e person so affected. 7e ta%es t"e person as #est to solve "is own pro#lems and "e facilitates t"e person to reac" "is goal. Cooperative Counselling is t"e process in w"ic" #ot" t"e councellor and client mutually cooperate to solve t"e pro#lems of t"e client. ,t is not eit"er w"olly client centred nor w"olly counselor centred #ut it is centred #ot" councellor and client e)ually. ,t is defined as mutual discussion of an employee8s emotional pro#lem to set up conditions and plans of actions t"at will remedy it. !"is form of counselling appears to #e more suita#le to managerial attitude and temperament in our country. Among t"e t"ree from of counselling$ t"e advice offered in directive counseling considers t"e surface crisesI t"e nondirective counselling goes to t"e underlining cause$ t"e real crisis t"at leads t"e employee to understand "is pro#lem. ,t is t"us suggested t"at nondirective to counselling is$ pro#a#ly$ t"e #est among t"e t"ree forms.

&ounselling !rocess !"e counselling process$ normally consists of t"e following stages. Initiatin, !"is involves developing mutual understanding openness and acceptance #etween counselor and counseled. !"is rapport #uilding is essential to initiate t"e counselling. E@'l rati n !"is involved understanding wit" t"e "elp of t"e counselling$ t"e counsellee8s own situation$ "is feelings$ "is strengt"s and wea%ness$ "is pro#lems and needs. !"e councellor allows t"e counselee to tal% a#out anyt"ing even apparently unrelated to t"e issue. ,t is important for t"e counselor to ac"ieve a free flow of expression9often t"roug" rum#lings / of t"e employee. !"e counselor will need an alert and receptive mind for t"is. !"e councellor$ "owever$ see to it t"at t"e councellor eventually concentrates "is t"oug"ts on "is pro#lem rat"er t"an stray away from it. !"e counselor "as to "elp t"e counselee in concentrating more on t"e pro#lem and getting deeper into it and to discover t"e #asic pro#lems #y "imself. < r&ulati n 3 a!ti n 'lan !"is involved exploring possi#le solutions and formulating action plan for implementing t"em to ma%e t"e counselee t"e normal person. &ounselling and Industrial %elations W"en employee are affected #y 'o# related and personal pro#lems t"at very muc" affect t"e organiGational welfare #esides t"eir own. 7ence$ if "e pro#lems are not identified in t"e initial stages itself and solved$ t"ey may assume a serious proportion and ultimately affect t"e employee and organisation resulting in poor industrial relations. 7ence t"e organisatoins s"ould ta%e t"ese pro#lem seriously and solve t"em. ,f t"e pro#lems are relating to tec"nical or 'o# related$ t"e line manager %nows well from "is experience "ow and w"at c"anges "e may suggest t"at may "elp restoration of employee8s effective performance. (oncerning career pro#lems t"e supervisors may refer suc" cases to t"e personnel specialists wit"in t"e organisation. Again$ it is t"e line supervisors w"o must create confidence on t"e minds of t"eir su#ordinates t"at t"ey can solve even t"e personal pro#lems of t"eir employees. !"e supervisors s"ould also #e aware of t"at personal and 'o# related pro#lems are largely insepara#le and t"e employee #rings "is total personality to "is wor% and "ence t"e organiGations s"ould also "elp t"eir employees to solve t"eir personal pro#lems to t"e extent possi#le t"roug" counselling.

7aving understood t"e importance of counselling as a tool of solving t"e various pro#lems of t"e employees and "elp t"em t"e maintainK improve concentration in t"eir wor% performance$ now many organiGations start adopting conselling practices and procedure to maintain #etter industrial relations.

%eview 6uestions :. W"at is counsellingL Bring out its importance. <. Explain t"e forms and tec"ni)ues of employee counselling in industry. =. Descri#e t"e process of counselling.

Less n 1( % n3li!t Mana,e&ent


(onflict is a #asic fact of life in groups and organiGations. 0rganiGations contain people wit" divergent personalities$ perceptions$ goals$ ideas$ values and #e"aviours. 7ence$ conflict is an inevita#le feature of organiGations. ("ung and Megginson descri#es conflict as t"e struggle #etween incompati#le or opposing needs$ wis"es$ ideas$ interests or people. More specifically$ Hconflict is a process in w"ic" an effort is purposefully made #y one person or unit to #loc% anot"er t"at results in frustrating t"e attainment of t"e ot"er8s goals or t"e furt"ering of "is or "er interestsF. (onflict is a naturally occurring p"enomenonI inevita#leI in"erent in any systemI not always #ad and in fact an optimum level of conflict energiGes t"e system. 2osters creativity and innovation$ and acts as a cat"arsis. At t"e same time if conflict is allowed to develop #eyond control$ it could tend to #ecome destructive$ resulting in suc" aversive conse)uences suc" as stri%es$ sa#otage and ot"er dysfunctional #e"aviours. !"e effective manager must understand t"e nature of conflict t"at is #eneficial to t"e organisation and conflict t"at is not. 7e must deal wit" conflict in ways t"at promote #ot" individual and organiGational goals. !"e management of conflict is an essential prere)uisite to sound "uman relations. Features (onflict occurs w"en two or more parties pursue mutually exclusive goals$ values or events. (onflict arises out of differing perceptions. (onflict refers to deli#erate #e"aviour. (onflict can exist eit"er at t"e latent or overt level ,n conflict one side sees on opportunity to interfere wit" t"e ot"ers opportunity to ac)uire resources or perform activities. (onflict is not an organiGational a#normality #ut a normal aspect of social intercourse.

Level of &onflict 1ow level of conflict creates conditions of inertia and #oredom in t"e system and excessive conflict results in destruction and dysfunctional tendencies. Managers "ave to monitor t"e level of conflict in t"e system and if t"ere is too little or no conflict at all$ t"e managers may even "ave to induce some level of conflict to energiGe t"e system. As t"e level of conflict tends to go #eyond t"e optimum level t"e manager must act to resolve t"e conflict in a manner t"at will #e #eneficial to t"e organisation. LE3EL #F C#NFLICT
#-ti"'" Le,e

0i!h Le,e

Lo& Le,e

#tages of &onflict '"isode


(0;21,(! A2!E- MA!7 1A!E;! (0;21,(!

E-(E,6ED (0;21,(!

2E1! (0;21,(!

MA;,2ES! (0;21,(!

(0;21,(! -ES01U!,0;

!"e a#ove model presents conflict as a series of stages namely latent conflictI perceived conflictI felt conflictI manifest conflict and conflict aftermat". Latent % n3li!t Eac" episode of conflict starts wit" a Elatent conflict8 #ut t"e actual conflict "as not emerged. 2actors suc" as competition for scarce resources$ competition for positions in t"e organisation exist w"ic" could #ecome conflicts.

Per!ei*ed ! n3li!t !"is conflicts results in due to t"e parties misunderstanding of eac" ot"er true position. 0ne party perceives t"e ot"er to #e li%ely to t"wart or frustrate "is goals. <elt ! n3li!t W"en t"e conflict ma%es one tense or anxious$ t"e conflict is a felt conflict #ecause t"e difference are personaliGed or internaliGed. Mani3est ! n3li!t !"is is t"e stage for open confrontation. ,t ta%es t"e form of conflictual #e"aviour including aggression$ sa#otage$ apat"y etc. all of w"ic" reduce organiGation8s effectiveness. % n3li!t res luti n W"en conflict is resolved in some form$ it is called conflict resolution. % n3li!t a3ter&at$ !"e aftermat" of conflict may #e eit"er positive or negative for t"e organisation depending on "ow t"e conflict is resolved. ,f t"e conflict is genuinely resolved$ it can lead to more enduring relations"ip #etween partiesI if t"e conflict is merely suppressed #ut not resolved$ t"e latent of conflict may #e aggravated and explode in more violent and serious forms. !"is is called Econflict aftermat"8$ T "es of conflicts (onflicts may ta%e following forms.
C#NFLICT

Individual Conflict

Group Conflict

Organizational Conflict

Inter individual conflict

Intra individual conflict

Inter organizatio nal conflict

Intra organizati onal conflict

Inter group conflict

Inter group conflict

Indi*idual ! n3li!t Inter-individual conflict ,nter9individual or inter9personal conflict involves two or more individuals w"o "old polariGed points of view. !"e most common reasons for inter9personal conflicts are personality differences$ perceptions$ clas"es of values and interests$ and competing for scare resources. Intra-individual conflict ,ntra9individual conflict is internal to t"e person and pro#a#ly t"e most difficult type of conflict to analyGe. Basically$ intra9personal conflict can #e related to two t"ingsI conflict arising due to divergent goals or conflict arising from out of multiple roles to #e played. Goal conflict occurs w"en a goal t"at an individual is attempting to ac"ieve "as #ot" positive and negative features. Generally t"ree separate types of goal conflicts are indentified. Approach-approach conflict: A person wants tow positive situations #ut can "ave only one. Approach-avoidance conflict: ,n t"is form of goal conflict t"e person attempts to ac"ieve a goal t"at "as #ot" positive and negative aspects #ut wants to avail of positive and negative. Avoidance-avoidance conflict: !"is type of conflict can #e resolved #ecause a person faced two negative goals and "e may not c"oose eit"er of t"em and may simply leave t"e situation.

-ole conflict is t"e result of divergent role expectations. ,t exits w"en t"e expectations of a 'o# are mutually different or opposite and t"e individual cannot meet one expectation wit"out re'ecting t"e ot"er. An individual confronting wit" role conflict will experience psyc"ological stress leading to emotional pro#lems$ resulting in poor performance. )r u' ! n3li!t Inter-group conflict

Every group is in atleast partial conflict wit" every ot"er group it interacts wit". !"e groups differ in goals$ wor% activities$ power and prestige. !"e sources of intergroup conflict are incompati#le goals$ tas% interdependence$ resource allocation$ competitive incentive and reward system$ differences in values or perception etc. Intra-group conflict ,ntra9group conflict is essentially same as t"e #ases of inter9individual conflict. Or,ani/ati nal ! n3li!t Inter-organi$ational conflict !"e #ases to inter9organiGational conflicts are essentially t"e same as t"e #ases on inter9 oup conflict. !"e types of inter9organiGational conflict are #etween management and government$ management and management$ union and government etc. Intra-organi$ational conflict ,ntra9organisational conflict are mainly t"ree %inds. #ori$ontal conflict: ,t refers to conflict #etween employees of departments a t"e same "ierarc"ical level in an organiGation. 9ertical conflict: ,f refers to any conflict #etween different "ierarc"ical levels in an organisation. ,t occurs usually in superior9su#ordinate relations. !"e reasons for vertical conflicts are inade)uate communication$ differences in interest$ perception and attitudes #etween position "olders occupying different levels. *ine and staff conflict: ,t refers to conflict #etween line managers and staff specialists.

&onflict Management (onflict "as to #e resolved as soon as t"e optimum level is crossed and #efore dysfunctional conse)uences start occurring. 2ollowing are some of t"e tec"ni)ues employed to resolve conflict. D &inan!e t$r u,$ ' siti n *uiet often managers use positional aut"ority to fire a lower ran%ing su#ordinate t"ey consider to #e a trou#le9ma%er. ,ndividuals$ in organisation$ wit" rare exception$ recogniGe and accept t"e aut"ority of t"eir superiors as an accepta#le way or resolving

conflicts. Alt"oug" t"ey may not #e in agreement wit" t"ese decisions$ t"e a#ide #y t"em. A''eals 'r !edures !"e people in disagreements may appeal to "ig"er aut"ority to "elp t"em to arrive at a solution #y resolving t"e pro#lem satisfactorily. Liais n ,r u's !o ar#it differences #etween two warring factions$ an ar#itrator can #e appoint w"o can use t"is expertise and persuasion to ac"ieve coordination and get people toget"er. Redu!e interde'enden!e 0n way to resolve conflict is to reduce interdependences. Departments may #e provided wit" resources t"at are independent of t"ose provided for ot"er departments. &onflict %esolution Model !"ompson suggested five styles suc" as competiting$ avoiding$ accommodating$ colla#orating and compromising to resolve conflicts. ,f two parties experience conflicts$ eac" one could #e more concerned a#ove t"eir own self or could #e more concerned for t"e ot"er. W"en t"e concern for Eself8 is very low t"ey could #e very unassertive. ,f t"e concern for "e self is very "ig"$ t"ey could #e very assertive. ,f t"eir concern for t"e ot"er is low$ t"ey would tend to t"e non9cooperative. ,f t"e concern for t"e ot"er it "ig"$ t"ey could #e co9operative. ,n a conflicting situation. ,f an individual8s concern for self and ot"ers is low$ "e will avoid t"e conflictI ,f "e "as "ig" concern for "imself and low condern for ot"ers "e will competeI ,f "e "as "ig" concern for "imself and for ot"ers$ "e will colla#orateI ,f "e "as "ig" concern for ot"er #ut low concern for "imself$ "e will accommodateI

,f "e "as medium level of concern for #ot" "imself and t"e ot"er$ "e will go for compromise.
(oncern for ot"ers 7ig" A((0MM0DA!E (011AB0-A!E

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All t"e five styles "ave its own advantage and disadvantages and a suita#le style depends upon #ot" t"e nature of t"e individual and t"e situational factors. %eview 6uestions :. W"at do you understand #y Econflicts8L W"at are t"e types of conflictsL <. Explain Econflicts episode8. =. 7ow to manage conflicts in an organisatoinL

Less n 1:ualit. %ir!les


,n 5apanese culture$ t"e group plays a dominate role. !"e 5apanese end to do t"ings in groups$ to place to "ig" value on group mem#ers"ip$ and to strive to #e as co"esive as possi#le. ,t was natural for t"is group orientation to #e expressed in *uality9(ontrol 3*9 (4 circles in 5apanese industry. W"en American companies #egan to loo% to t"e 5apanese for ways to compete in wor% mar%ets$ t"e most visi#le and transfera#le tec"ni)ue seemed to #e *9( groups. Several t"ousand$ U.S. companies now ma%e use of t"em. A )uality circle "as #een defined as a Hself9governing group of wor%ers wit" or wit"out t"eir supervisors w"o voluntarily meet regularly to identify$ analyses and solve pro#lems of t"eir wor% fieldF. A group participation proves$ )uality circle Htypically are small groups of volunteers form t"e same wor% areas w"o meet regularly to identify$ analyGe$ and solve )uality and related pro#lems in t"eir area of responsi#ility. Mem#ers of a group c"oose a particular pro#lem to study$ gat"er data$ and control c"arts to frame a recommendation t"at can #e presented to management. ;ow groups are trained in communication and pro#lem solving s%ills and )ualityK measurement strategies and tec"ni)ues. Ob5ective of 6ualit &ircles !o develop en"ance and utiliGe "uman resources effectively. !o improve )uality of productsK services$ productivity and reduce cost of production per unit of output !o satisfy t"e wor%ers psyc"ological needs for self9urge participation$ recognition etc. wit" a view to motivate t"em !o improve various supervisory s%ills li%e leaders"ip$ pro#lem solving inter9 personal and conflict resolution !o utiliGe individual imaginative$ creative and innovative s%ills t"roug" participation$ creating and developing wor% interest$ include pro#lem solving tec"ni)ues etc.

Techni*ues used for Discussion in 6ualit &ircles

BrainCst r&in, 'r !ess Under t"is tec"ni)ue complete free environment is created wit" a view to stimulate creativity and t"e employees can come out wit" as many ideas as possi#le. 1ater t"ese ideas will #e screened and #est ideas will #e c"osen. %ause and e33e!t Under t"is tec"ni)ue mem#ers are as%ed to find out t"e causes for t"e identified pro#lem. !"ey identify t"e causes and t"eir effects. Sa&'lin, and !$artin, &et$ ds Under t"is tec"ni)ue$ mem#ers of t"e )uality circle o#serve t"e events and t"eir conse)uences in t"e form of positive or negative results. !"ey c"art out all t"eir o#servation eit"er in se)uence or in some ot"er relations"ip w"ic" gives clear ideal of t"e pro#lem. !"ese tec"ni)ues will wor% effectively in attaining t"e o#'ectives only w"en t"e organiGational structure of *9( is sound and systematic. 6ualit &ircle !rocess SiGe of t"e eac" *9( select t"e pro#lem from t"e operational pro#lems suggested #y management or #y t"e mem#ers of t"e *9(. After selecting t"e pro#lem t"e mem#ers analyGe it #y using t"e various pro#lem solving tec"ni)ues. !"en t"e mem#ers develop alternative solution$ t"eir effect and conse)uences on organisation and mem#ers$ cost #enefit analysis and merits and demerits of eac" solution. !"e next stage is t"at mem#ers select t"e #est solution from among t"e alternative solutions. Management reviews t"e solutions and may or may not accept t"e solution offered #y t"e *9( mem#ers. ,f t"e solution is accepted it is implemented. Ma$ing 6)& !rocess 'ffective !"e following factors s"ould #e recogniGed and practiced to ma%e *9( process of effective. All mem#ers s"ould accept t"at t"ere is more t"an one way to solve a pro#lem successfully. All mem#ers to #e encouraged to clarify and #uild on eac" ot"ers ideas.

eriodic summariGing of t"e activities #y t"e leader or mem#er to ensure common understanding. Avoidance of "eated arguments in favour of one particular position. Avoidance of tec"ni)ue suc" as ma'ority vote to o#tain group agreement.

,t "as #een stated in many forums t"at a ma'or part of "e responsi#ility for )uality circles lies wit" t"e management t"an wor%ers. Mr. ,s"i%awa$ during a visit to ,ndia in :CBA "ad remar%ed t"at *9(s can contri#ute only a#out =D percent to )uality improvement and t"e rest "as to #e in t"e form of management efforts. !"e famous American expert Mr. Deming$ after w"om$ most of t"e )uality awards are given$ un"esitatingly says t"at a ma'or part of t"e effort towards )uality improvement "as to come form management. !"e secret of t"e success of t"e 5apanese effort "as #een t"e continuous modification of t"eir designs to overcome t"e )uality pro#lems faced #y t"e customers and rectify t"em. !"is calls for a lot of upstream management and proper tools of analysis to #e applied for successful efforts. ,t is only in a climate of co"esion$ mutual trust and understanding t"at t"ere can #e meaningful progress. 2or t"is$ #ot" managements and trade unions "ave to wor% 'ointly for t"e common organiGational goal. ,t is not enoug" if only t"e management ta%es upon itself t"e tas% of ac"ieving t"e desired results. ,t calls for t"e willing involvement of every section of employees$ including t"ose at t"e grassroots$ leading to company wise true participation and open management. 2inally$ development of t"e most important of all resources$ "uman resource "as to find a place. !o ac"ieve t"e prere)uisites for excellence$ many organiGations are adopting various %inds of management tools in t"e fond "ope of finding a place for all t"eir pro#lems in order to #ring in greater involvement of employees in day9to9day affairs. Sweden and &ugoslavia 3and some companied in ,ndia$ too4 "ad experimented wit" Hwor% place democracyF and Hwor% autonomyF #ut not wit" muc" success. !"e tas% #efore ,ndia is to recreate t"e culture in w"ic" a sense of #elonging to t"e organisation is generated among all employees. ,f "as were to "appen$ managements "ave to c"ange t"eir age9old attitudes. Management$ #y itself$ wit"out actively involving tas% performers would not #e a#le to ac"ieve t"e organiGational goals. !"is would #e possi#le only t"roug" a "olistic approac" towards employees and "umaniGation of wor%. Enric"ment of t"e H)uality of wor%ing lifeF and catering to t"e self9esteem and recognition needs of employees only would "elp

develop in t"em a sense of involvement$ participation and pride in t"e organiGational progress. !"e one road to ac"ieve t"is goal is t"e effective implementation of small group activities suc" as HEmployees articipation (ircleF 3E (4I HSmall Group ActivitiesF 3SGA4 and H!raining at Wor% !eamsF 3!AW!4. ,n ,ndia in t"e West t"ey are called H*uality (irclesF. ,n 5apan and many Sout"east Asian countries$ t"e small groups are %nown as H*uality (ontrol (irclesF #ecause t"ey got evolved in t"e sixties as a result of massive )uality control training imparted to t"e employees. !"e H*uality (ircleF concept comes nearest o satisfying t"e pre9re)uisites for developing t"e capa#ility to face t"e current and emerging c"allenges. ,ts uni)ue features suc" as voluntariness$ #ottom up group synergy are now proved to #eing a#out tangi#le and intangi#le #enefits to any organisation$ if practiced wit" sincerity of purpose as adapted to t"e ,ndian milieu. !"e num#er of organiGations implementing )uality circles in ,ndia "as #een steadily rising covering #ot" t"e pu#lic and private sectors and government agencies. !"is sc"eme will no dou#t contri#ute to t"e organiGational effectiveness and to en"ance 'o# satisfaction and sound "uman relations in all organiGations. %eview 6uestions :. Define t"e term H*uality (ircleF. W"at are its o#'ectivesL <. Explain t"e purpose and process of *uality (ircles.

%ASE

Industrial Relati ns T$e tis! e@'erien!e

!"e !ata ,ron and Steel (o. 1imited "as a "istory of successful industrial relations. !"is is mainly due to t"e support esta#lis"ed #etween management and la#our. !,S(0 management #elieves t"at t"e "uman #eing is t"e core of t"e industry. !"erefore "is needs and fulfillment of "is #asic necessities were as important as any ot"er consideration in industry suc" as production and profit. !"e excellent association of employees wit" management started wit" t"e signing of an agreement #y t"e management and t"e union way #ac% in :C?@. !"e agreement provided an increasing measure of closer association of t"e wor%ers wit" t"e management in t"e wor%ing of t"e industry. !"ey #elieved t"is would "elp9 a4 in promoting increases in productivity for t"e general #enefit of t"e organisation$ t"e employees and t"e country. #4 in giving employees a #etter understanding of t"eir role and importance in t"e wor%ing of t"e industry and in process productionI and c4 in satisfying t"e urge for self9expression.
E int ! un!ils and 9 r7s ! &&ittees

A series of 5oint (ouncils and 5oint Wor%s (ommittees were su#se)uently set up. !"e o#'ectives was to study and advise on t"e steps deemed necessary for increasing production$ improving productivity$ discipline$ cost$ economy$ promotion$ welfare$ encouragement of suggestions$ improvement of wor%ing conditions$ as well as t"e follow9up action on t"e implementation of t"e recommendations and decisions approved #y t"e management from time to time.
T$e t$reeCtier setu'

As already indicated$ t"e close association of employees wit" management came more into existence wit" t"e agreement signed in :C?@. !"e t"ree9tier setup of 'oint councils consisted of t"e 5oint Departmental (ouncils 35D(s4 at t"e #ase. 0ne was set up for eac" ma'or department and com#ined ones for two or more smaller departments. !"e 5oint Wor%s (ouncil 35W( for t"e w"ole organisation is at t"e intermediate level. !"e 5oint (onsultative (ouncil of Management 35((M4 constituting t"e apex #ody.

!"e 5oint (ouncils at t"eir respective levels study operational results and production pro#lems$ advise on t"e steps deemed necessary to promote and rationaliGe production$ improve productivity and discipline and economiGe costs. romotions of welfare and safety$ encouragement of suggestions and improvement of wor%ing conditions also fall wit"in t"e purview of t"ese (ouncils. !"ese #odies "ave also to follow up on t"e implementation of t"eir recommendations and decisions approved #y management.

,n addition to t"ese common functions$ t"e 5oint Wor%s (ouncils "as t"e special function of reviewing every mont" t"e wor%ing of t"e departmental councils and a few ot"er 'oint committees li%e t"e Suggestion Box (ommittee$ General Safety (ommittee$ (anteen Managing (ommittee and t"e Safety Appliances (ommittee.

!"e 5oint (onsultative (ouncil of Management is entrusted wit" t"e tas% of advising management on all matters concerning t"e wor%ing of "e industry in respect of production and welfare$ particularly t"ose referred to it #y t"e 5oint Wor%ers (ouncil and follow up on t"e implementation of its recommendations. !"e (ouncil "as also to advise management on economic and financial matters placed #y management #efore it$ #ut not t"ose affecting t"e relations of company wit" its s"are"olders and managerial staff$ or taxes. !"is does not mean t"at t"ere are no pro#lems in putting t"roug" t"e sc"eme. 2or example t"e coordination of t"e functioning of t"e various 5D(s of w"ic" t"ere were >: in :CB@$ is naturally a complex 'o#. !"is is soug"t to #e done t"roug" an annual meeting of ("airmen$ 6ice9("airmen and Secretaries of al t"e (ouncils under t"e ("airmans"ip of t"e General Manager 3op4$ w"o is also t"e ("airman of t"e 5oint Wor%s (ouncil. ,t is also attended #y t"e top officials of management and t"e Union. All procedural issues concerning t"e wor%ing of t"e councils are discussed and settled at t"is meeting$ and a review made of t"e Sc"eme of Employees Association wit" Management as a w"ole. !"is provides an opportunity to t"e various 5D( officials to learn from one anot"er t"e wea%nesses of a particular council and t"e strong points of ot"ers. A!$ie*e&ents ,t is difficult to measure t"e success of 5D(s in terms of production tonnage or savings in t"e cost of steel per tone. 7owever$ t"e fact remains t"at$ during t"e past several years$ production in !ata Steel #een toe t"e tune of :DDM of t"e lantKs capacity. During t"e year :CB:9B<$ it reac"ed t"e all9time "ig" figure of more t"an :D?M of t"e lant8s capacity. 7e various improvements suggested in process and procedure elimination of defective wor%$ import su#stitution$ consumption of materials etc. indicate t"e 5D(s are

deeply involved wit" t"e pro#lem of productivity. By and large$ t"e (ouncils "ave succeeded in ma%ing t"e employees t"in% a#out development and improvements. !"e most a#iding effect$ "owever$ of t"ese 'oint consultations "as #een t"e strengt"ening of t"e team spirit and of t"e sense of #elonging$ w"ic" is responsi#le for t"e uni)ue industrial "armony and cordial relations"ip t"at prevails #etween employees and management of !ata Steel since t"e past ?= years9a record indeed. &et management is not complacent as is evident from t"e following wordings of 5.-.D. !ata. H,n :C?@$ in consultation wit" t"e Union$ we created t"e consultative mac"inery w"ic" "as proved largely responsi#le for t"e mutual trust and cooperation we "ave en'oyed since t"en. But we must not #e satisfied wit" w"at we "ave done up to now. 0ur wor%ers$ today$ particularly t"ey younger ones$ are #etter educated and trained to understand t"e tec"nical and managerial pro#lems of industry and are$ t"erefore$ )uite capa#le of en"anced participation in t"e management of industry. , "ave #een feeling for some time t"at we s"ould we ta%e a furt"er step forward in our 'oint sc"eme or cooperationF. 2inally let us end wit" t"e opinion of an independent individual. HMay , "ope t"at t"e relations"ip #etween t"e great 7ouse of !ata and t"e Wor%ers will #e of t"e friendliest c"aracter$ and t"at #ot" of t"em will constitute a great family #ringing in unity and "armony. ,t is t"e privilege of #ot" of youNto given ,ndia in o#'ect lesson in amity and goodwillF. :Mahat"a 1an(hi

MODEL QUESTION PAPER


*a-er 4.33 In('$tria Re ation$ Ti"e 2 3 0o'r$ *.RT < . Answer any FI3E *uestions All )uestions carries e)ual mar%s :. W"at do you understand #y industrial relationsL W"at are its o#'ectivesL <. W"at are t"e o#'ectives and functions of ,nternational 1a#our 0rganiGationsL =. Explain grievance rederssal procedure. >. W"at are t"e principles of code of disciplineL ?. State t"e principles of collective #oardsL @. W"at are t"e functions of wage #oardsL A. W"at are t"e o#'ectives employee education and trainingL B. W"at is employee counsellingL W"at are its o#'ectivesL *.RT < @ Answer any F#UR )uestions All )uestion carry e)ual mar%s ?uestion "o. 1@ is compulsory C. Explain t"e role of Government$ employers and t"e unions in maintaining smoot" industrial relations. :D. Explain t"e relevant provisions of (onstitution in protecting t"e la#our. ::. W"at are t"e pro#lems of trade unionsL W"at are your suggestions for its effective functioningL :<. Explain t"e mac"ineries constituted for settlement of industrial disputes. :=. W"at are t"e o#'ectives and forms of wor%ers8 participation in managementL :>. Explain t"e types and management of conflicts. :?. Explain t"e purpose and process of *uality (ircles. 81= 159 ? 6; Ma7i"'" Mark$ 2 1;; 85 = > ? 4;9

BOOFS RE<ERRED :. Mamoria ( B P Sat"is" Mamoria$ HDynamics of ,ndustrial -elationsF$ 7imalaya u#lis"ing 7ouse$ Mum#ai. <. !ripat"i .(.$ H ersonnel Management and ,ndustrial -elationsF$ Sultan ("and and Sons$ ;ew Del"i. =. B"agoliwal !. ;. H ersonnel Management and ,ndustrial -elatoinF$ Sa"itya B"awan$ Agra. >. Daver -.S. H ersonnel Management and ,ndustrial -elationsF$ 6i%as" u#lications$ ;ew Del"i. ?. +apur S. +. P unia B.+. H ersonnel Management and ,ndustrial -elationsF$ S.+. u#lis"ers$ ;ew Del"i. @. !ripat"i S.D. P Arya $ H!rade Union / Management -elation in ,ndiaF$ Deep P Deep u#lication$ ;ew Del"i.

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