AR INSTITUTE OF MANAGEMENT & TECHNOLOGY

MBA HR 02 INDUSTRIAL RELATIONS AND LABOUR ENACTMENT

COURSE CAPSULE

Q.1) What do you understand by the term industrial relations? Explain the objective and nature of industrial
relations.
Meaning & Definition of Industrial Relations
Industrial relations mean the relationships between employers and employees in industrial organizations.
According to Dale Yoder, the term industrial relations refer to the whole field or relationships among people, human
relationships that exist because of the necessary collaboration of men and women in the employment process of modern
industry.
According to ILO, IR comprises relationships between the State on the one hand and the employers and organizations
on the other and the occupational organizations themselves.
Objectives of Industrial Relations
The primary objective of industrial relations is to maintain congenial relations between employees and employer. The
other objectives are:
i. To promote and develop congenial labour management relations;
ii. To enhance the economic status of the worker by improving wages, benefits and by helping in evolving sound budget;
iii. To regulate the production by minimizing industrial conflicts through state control;
iv. To socialize industries by making the government as an employer;
v. To provide an opportunity to the workers to have a say in the management and decision- making;
vi. To improves workers strength with a view to solve their problems through mutual negotiations and consultation with
the management;
vii. To encourage and develop trade unions in order to improve the workers strength;
viii. To avoid industrial conflict and their consequences;
ix. To extend and maintain industrial democracy.
Nature/Features of Industrial Relations
i. Industrial relations are mainly the relations between employees and the employer.
ii. Industrial relations are the outcome of the practice of human resource management and employment relations.
iii. These relations emphasis on accommodating other partys interest, values and needs. Parties develop skills of adjusting
to and cooperating with each other.
iv. Industrial relations are governed by the system of rules and regulations concerning work place and working
community.
v. The main purpose is to maintain harmonious relations between employees and employer by solving their problems
though grievance procedure and collective bargaining.
vi. The government and shapes industrial relations though industrial relations policies, rules, agreements, mediation,
awards, acts etc.
vii. Trade Union is another important institution in the industrial relations. Trade union influence and shape the industrial
relations through collective Bargaining.
viii. Industrial relations develop the skills and methods of adjusting to and cooperating with each other.
ix. The Government-involves to shape the industrial relations through laws, rules, agreements, awards etc.
x. The important factors of industrial relations are: employees and their organizations, employer and their associations and
Government.
Q.2) Discuss the main approaches to the study of industrial relations.
Approaches to Industrial Relations
Industrial relations issues are complex and multifarious. They are the results of social, cultural, economic, political, and
governmental factors. An economist interprets industrial conflict in terms of impersonal market forces, a psychologist
interprets in terms of impersonal market forces, a psychologist interprets in terms of individual goals, and motives etc.
similarly, a sociologist interprets from his own viewpoint. But the study of industrial relations should be from the
multidisciplinary approach.
1. Psychological Approach to Industrial Relations: According to psychologists, issues of industrial relations have their
origin in the differences in the perceptions of management, unions and rank and file workers. The perpetual differences
arise due to differences in personalities, attitudes, etc. Similarly factors like motivation, leadership, group goals versus
individual goals etc., are responsible for industrial conflicts.
2. Sociological Approach to Industrial Relations: Industry is a social world in miniature. Organisations are
communities of individual and groups with differing personalities, educational and family backgrounds, emotions,
sentiments etc. These differences in individuals create problems of conflict and competition among the members of
individual society.
3. Human Relations Approach to Industrial Relations: Human resources are made up of living beings but not
machines. They need freedom of speech, of thought, of expression, of movement and of control over the timings. This
approach implies that the relationship between employee and employer as between two human beings. The term human
relations include the relationship during the out of employment situations.
4. Gandhian Approach to Industrial Relations: Mahatma Gandhis views on industrial relations are based on his
fundamental principles of truth, non violence and non possession. Under the principle pf non-violence and truth, Gandhi
meant a peaceful co-existence of capital and labour. Trusteeship implies cooperation between capital and labour. Gandhi
advocated the following rules to resolve industrial conflicts:
Workers should seek redressal of reasonable demands through collective action.
Trade unions should decide to go on strike talking ballot authority from all workers and remain peaceful and use
non- violent methods.
Workers should avoid strikes to the possible extent.
Strikes should be resorted to only as a last report.
Workers should avoid formation of unions in philanthropical organisation.
Workers should take recourse to voluntary arbitration to the possible extent where direct settlement failed.
5. Giri Approach: According to Shri V.V. Giri, the late President of India, collective bargaining and mutual negotiations
between management and labour should be used to settle industrial disputes. Giris stress was on voluntary efforts of the
management and the trade unions to wind up their differences, through voluntary arbitration. He was against compulsory
adjudication which cuts the very root of the trade union movement. He advocated collective bargaining for securing
industrial peace.
Q.3) What are the causes of unsatisfactory labour relations? Suggest measures for healthy labour relations.
Causes/Factors of Poor Industrial Relations
Industrial relations scene is not satisfactory and it is visible from frequent strikes, gherao, lockout and other forms of
industrial disputes.
The main causes of industrial disputes may be classified into four groups: (i) Economic, (ii) Managerial (iii) Political and
(iv) Others. Now we shall discuss these causes as follows:
1. Economic causes: Really, the most common causes of industrial disputes are economic causes. These are as follows:
a) Wages: The demand for wage increase is the prime most cause of the industrial disputes. A large number of
strikes are being organised to raise a voice against the rise in prices and cost of living. The real wages of the
workers decline faster and they feel dissatisfied with their present emoluments and struggle for the improvement
in wages. By having a cursory glance on the history of industrial disputes; it becomes clear that cause of most of
the industrial disputes was wages. The Indian employer has no clear-cut and enlightened wage policy. Most of the
industrial disputes were the result of a demand for higher wages.
b) Dearness allowance and bonus: Increase in cost of living was the main cause of the demand of dearness
allowance by the workers to equate their wages with the rise of prices. Bonus also plays an important role as a
cause of industrial dispute. Both the quantum and the method of bonus payment have led to a number of disputes.
There is an increasing feeling among the workers that they should have a greater share in the profits of the
concern and this fact has not been recognized by the employees and non- acceptance of this fact has been a source
of friction among employers and employees.
c) High industrial profits: During and after the world wars, prices of the commodities went up and the
industrialists earned a huge profit. In order to get share in the prosperity of the industry it naturally led to the
resentment on their part. The increased profits also led to the demands of higher wages and bonus. Now in the
changing world, concept of labour has changed considerably. They think themselves as a partner of the industry
and demand their share in the profits.
d) Working condition and working hours: The working conditions in Indian industries are not hygienic. There is
not ample provision of water, heating, lighting, safety etc. Working hours are also greater. The demand of
palatable working conditions and shorter hours of work are also responsible for labour disputes.
e) Modernization and Automation of Plant and Machinery: The attempt at modernization and introduction of
automatic machinery to replace labour has been the major cause of disputes of India. Workers go on strike, off
and on, to resist rationalization and automation. A strike in cotton textile industry in Kanpur in 1955 is an
example of such disputes. Workers n Life Insurance Corporation went on strike recently against introducing
computers in the corporation.
f) Demand for other facilities: Demand for other facilities for meeting out their basic needs such as medical,
education, housing, etc. encourage the workers to resort to direct action because such facilities were denied by the
employers.
2. Managerial causes of industrial disputes: These causes include autocratic managerial attitude and defective labour
polices etc.
a) Denial of recognition to trade unions: Failure on the part of the employer to recognize the trade unions or to
recognize the rival union for representation, insult of trade union leaders by the employers are some of the
examples of autocratic managerial attitude worth mentioning as the causes of industrial disputes. The attitude of
employers towards the labour association had never been sympathetic. They want to divide them and rule.
b) Defective recruitment policies: The recruitment practices in Indian industries are defective. Recruitment is
generally made by the contractors who exploit the workers and suppress their individuality. The defective
promotion, demotion, transfer and placement policies encourage dissatisfaction among workers.
c) Irregular lay off and retrenchment: Lay-off and retrenchment are reasons to be mentioned for encouraging
industrial disputes. Indian employers follow the policy of 'Hire and Fire'. As a matter of practice, workers are not
made permanent for a pretty long time to deprive them of their legitimate rights.
d) Defiance of agreements and codes: The employers' regularly defy the provisions of collectives- bargaining
agreements and code of conduct and code of discipline with a view to harass or exploit the employees and just
encourage strife.
e) Defective leadership: Inefficient leadership is also one of the causes of disputes. Leadership from the
management and from the workers is quite incompetent to induce the workers to get them worked. . Defective
management leadership ignored the labour problems and inefficient labour leadership could not coordinate the
efforts of their fellow members, so disputes arise.
f) Weak trade unions: In our country, trade unions are weak. According to labour Commission (1969), only 24%
of all workers were members of trade unions. In some undertakings, there is no union and in some other
undertakings, there is more than one union. Both the situations weaken the trade union movement. The workers in
non-union undertakings resort to direct action instead of collective bargaining which can be a better course of
action if there is a proper trade union.
3. Political causes: The political environment also influenced the trade unions movement in India. All the four national
unions are affiliated to one or the other political ideologies.
4. Other causes: Apart from the reasons mentioned above there are several other reasons of industrial disputes worth-
mentioning here such as sympathetic strike or in protest of police atrocities etc.
Industrial peace and collective bargaining: Collective bargaining is the process of discussion and negotiations between
two parties to arrive at a decision for setting terms and conditions of service. It is one of the methods to be used for setting
the industrial disputes between employer and employees. Both the parties, under this system, agree to follow a common
agreement and thus disputes are resolved. Thus collective bargaining may help throughout the industrial dispute and
restore industrial peace. Industrial peace and collective bargaining both are inter-related. Without recognizing the right of
collective bargaining is not possible in absence of industrial peace. Mutual understanding is a must for collective
bargaining which is possible only in an atmosphere of industrial peace.
Measures for Improving Industrial Relations
The fundamental principles or requirements for sound industrial relations are given below:
1. Sound Human Resource Policies: All policies and rules relating to industrial relations should be clear to everybody in
the enterprise and to the union leaders.
2. Constructive Attitudes: Both management and trade unions should adopt positive attitudes each other. Management
must recognize union as the spokesman of workers grievances and as custodians of their interests. The employer should
accept workers as equal partners in a joint endeavour.
3. Collective Bargaining: Employers organizations as well as trade unions should be able and willing to deal with
mutual problems freely and responsibly. Both should accept collective bargaining as the cornerstone of good industrial
relations.
4. Participative Management: Employers should associate workers and unions in the formulation and implementation of
human resource policies and practices. Management should convince workers of the integrity and sincerity of the
company.
5. Responsible Unions: Unions should adopt a responsible rather than political approach to industrial relations. A strong,
democratic and responsible union alone can ensure that workers honour the agreement with their employer.
6. Employee Welfare: Employers should recognize the need for the welfare of workers. They must ensure reasonable
wages, satisfactory working conditions, opportunities for training and development, and other necessary facilities for
labour. A genuine concern for the welfare and betterment of working class is necessary.
7. Grievance Procedure: A well-established and properly administered system for the timely and satisfactory redressal of
employees grievances can be very helpful in improving industrial relations.
Q.4) Discuss the various parties to IR also explain the role of state to industrial relations.
Actors in the IR system:
Three main parties are directly involved in industrial relations:
i. Employers: Employers possess certain rights vis--vis labors. They have the right to hire and fire them. Management
can also affect workers interests by exercising their right to relocate, close or merge the factory or to introduce
technological changes.
ii. Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with
management and voice their grievances. They also want to share decision making powers of management. Workers
generally unite to form unions against the management and get support from these unions.
iii. Government: The central and state government influences and regulates industrial relations through laws, rules,
agreements, awards of court and the like. It also includes third parties and labor and tribunal courts.
Role of State in Industrial Relations
The government has played at least six roles in industrial relation in India. There are:-
i) Laissez faire: During the 19th century, the government played a laissez faire role in industrial relations. Under laissez
faire the workers and employees were left alone to manage their affairs.
ii) Paternalism: By the end of 19th century. The laissez faire role of the government was replaced by paternalism.
Thinkers like Robert, Rusin and others attracked the attention of the public & the government towards the human working
conditions in factories, mines and plantations. The govt. had also set up a Royal Commission on labour (1929-31)
iii) Tripartism: Tripartite form of consultants on the model of the ILO conference. After independence several such
forms were formed. The major tripartite bodies formed:-
Indian labour conference, Standing labour committee, Industrial committees for specific industries etc.
iv) Encouragement of voluntarism: The government also promotes voluntarism involving a serious of code to regular
labour management relations. These codes include codes of discipline, code of conduct and code of efficiency and
welfare. Specifically the code of disciplines encourages voluntary arbitration and helps in maintaining discipline at
workplace.
v) Interventions: The government also plays an interventions role. The intervention is in the form of cancellation and
adjudication the industrial dispute Act, 1947 provide such measure to intervene in industrial disputes.
vi) Employer: The government also plays the role of the largest employer. The performance of this role influences labour
policy also. Obviously the government takes into consideration the interest of public sector while framing its policy.
Q.5) What are the emerging trends in industrial relations in the era of Globalisation. Examine significant
transition and transformation in IR in this context. Or giving trends The study of IR a changing needs.
Or
What is the present status of industrial relations in India? How emerging socio economic scenario is affecting
industrial relations?
Industrial relations are a concrete system of interaction between workers and management in industry.
In 1991 with declaration of new economic policy, a series of industrial fiscal and trade reforms were announced by the
government. It was presumed that there structural changes would arrest growing inertia that has set in the economy due to
its mis-management and continuance of unrealistic economic policies for more than over decodes.
It is heartening to note that the new economic policy has altogether generated a new business environment where in the
private sector was liberated from the clutches of excessive government controls. The Public sector units lost their
monopolistic custom duties the threshold limit of MRTP revoked FERA was considerably access ability of foreign capital
has become easily etc.
New economic policy maintains harmonious industrial relations. The field of IR is a coherent body of knowledge,
which links to different disciplines (low, economic, administration, sociology) which enables a person to understand,
explain and organize economic and social relations whether individual or collective formal and informal which arise or
are formed within the enterprise the firm the sector or in the company as a whole between workers, employees & their
representative organizations & the static and related to their situations, needs, rights & goals sought for the production of
goods and services. In industry relations system consists of three main heroes:-
Management organization
Workers
Formality & informally organized.
The heroes and their hierarchies or Organizations are located within the environment defined in terms of technology
labour and product markets and the distribution of power in the larger society as it impacts the heros the workplace. In
this environment 3 heroes interact with each other, negative use economics & political power or influence in the process
of determining the rules of the workplace that constitute the output of industrial relations system.
Development in the field of industrial relations:
1. A new context: In Europe, USA, and some other countries there have been an increase in international competition. A
number of new industrialized counters, some with a distinct advantage in labour costs have emerged. Quality and
innovation have become crucial to organization. Exchange rates have become volatile. New information & manufacturing
technologies have become available and the pace of structural reforms has increased. Economic performance has been a
major problem in many countries in recent years. There changes have led to an urgent need for a change in the fabric of
IR.
2. Trade unions: Trade union plays an important role in industrial relation. Trade union is a combination whether
temporary or permanent formed primarily for the purpose of regulating the relation between work men & employees
workers & workers or between employers and employees. The changes in the economy. Changes in the workforce, the
increase in part time and causal workers.
Employee aggressiveness, in some countries companies has pursued activities. In Australia unions cooperate with the
restricting policies of labour government.
3. Decline in Manufacturing and post faradism: There has been a seduction in the labour force in manufacturing with a
simultaneous increase in services. The blue collar workers of the 1970s and earlier decades have been giving way to white
color workers. They has developed a new configration of industries within manufacturing with the growth of
microelectronic, consumer and capital goods and a simultaneous fall in textile steel and heavy engineering. There has
been in a way a shift from fordism to post-fordism to post-fordism implying that skilled labour, decentralized bargaining,
displacing traditional workplaces.
These change described above have not taken place to the some degree in all countries, but are indicative of the
trends in most of them.
4. Quality of working life (QWL): During the 1980s there has been a greater concern for the QWL and productivity.
QWL originated in the 1950s as part of the job enrichment theories. Japanese companies concentrated predominantly on
the quality circles with a fair degree of success.
QWL has been instrumental in promoting a number of human resources policies that were aimed at getting
productivity increases as well as cooperation during the process of introducing changes in technology.
5. Crises Response: The economic crises of the1980s brought about a slow attitudinal change in unions and management.
There were instance of unions taking into accounts the health of the enterprise is determining their actions. For instance
American and airline unions engaged in once that bargaining with employers. They agreed to lower wages in order to
make companies more competitive. This has been aided by more transparent financial reporting to unions by
management.
Future of Industrial Relations:
Future of industrial relations main concepts improvement in relationship between union and management, under industrial
relations, trade union, disciplines collective bargaining, employee empowerment, technological change and anticipative
management.
Competition
Education and communication
Common human needs and expectations.
Q.6) Write a note on I.L.O and Indian Labour.
International Labour organization (I.L.O): The international labour organization symbolizes social justice. Universal
peace and human dignity.
The International Labour Organization (ILO), was established on April 19, 1919 by Versailles Peace Conference as an
autonomous body associated with the League of Nations. It was born as a result of the peace conference at the end of
World War 1 at Versailles, India became member of ILo in 1919, as an original signatory to the treaty of peace. The ILO
was the only international organization that survived even after the dissolution of its parent body, the League of Nations,
during the Second World War.
The ILO is a new social institution trying to make the world conscious that world peace may be affected by unjust
conditions of its working populations. It deals with international labour problems. The unique feature of ILO is that it is a
tripartite body consisting of representations of employers, labour and government.
All of them have their different roles. The Government which finance it, the workers, for whose benefit it is
created and the employers who share responsibility for the welfare of the workers.
Objectives of the ILO
The objectives are as follows:
1. Full employment and the raising of standards of living.
2. The employment of workers in the occupation in which they can have the satisfaction of giving the fullest measure of
their skill and make their contribution to the common well being.
3. The provision, as a means to the attachment of this end and under adequate guarantees for all concerned, of facilities for
training and the transfer of labour including migration for employment and settlement.
4. Policies in regard to wages and earnings bonus and other conditions of work calculated to ensure a just share of the
fruits of progress to all and a minimum living wage to all employed and in need of protection.
5. The effective recognition for the right of collective bargaining, the co-operation of management and labour in
continuous improvement of productive efficiency and the collaboration of workers and employers in social and economic
measures.
6. The extension of social security measures to provide a basic income to all in need of such protection and
comprehensive medical care.
7. Adequate protection for the life and health of workers in all occupations.
8. Provision for child welfare and maternity protection.
9. The provision of adequate nutrition, housing, and facilities for recreation and culture.
10. The assurance of educational and vocational opportunity.
Structure of the ILO
The ILO consists of three principal organs namely (i) the International Labour Conference; (ii) The Governing Body; (iii)
The International Labour Office. The work of the conference and the Governing Body is supplemented by that of
Regional Conferences, Regional Advisory Committee and Industrial Committees.
ILO

(1) (2) (3)


(1) Examines social
Problems and

(2) Adopts conventions
For ratification by Governments

(3) It is the electoral college
of the conference that
elects the Governing Body.
International International
Centre for Institute
Advanced of
Technical and Labour
Vocational Studies
Training

1. The International Labour Conference (I.L.C.): The I.L.C. is the policy-making organ of the I.L.O. It comprises of
04 representing governments employers and workers in the ratio of 2:1:1. The I.L.C holds its session item on the agenda.
One of the primary powers of the conference is to appoint committees to deal with different matters during each sessions.
The functions of I.L.C. are as follows:
i. To formulate International Labour standards.
ii. To fix amount of contribution by the member state.
iii. To decide the expenditure budgeted estimate proposed by the Director General and submitted to the Governing Body.
iv. To make amendments to the constitution subject to subsequent ratification of the amendments by 2/3 member states
including 5 of the 10 states of Industrial importance.
v. To consider the report of the Director General giving labour problems and assists in their solutions.
vi. To appoint committees to deal with different matters during each sessions.
vii. To select the members of the governing body once in 03 years.
viii. To select its president.
ix. To seek advisory opinion from the international committee of justice.
x. To confirm the powers, functions and procedure of Regional conference.
International
Labour Conference
Governing
Body
International Labour
Office
Representatives of the
(a) Governments
(b) Employers
(c)Workers in the ratio
of 2:1:1
Research
Investigation
Technical
Corporation
Publications
2. The Governing Body: It is another principal organ of the I.L.O. It is now political non-legislative body. It implements
decisions of the I.L.C. with the help of the International Labour Office. Out of the 56 members in it 28 represents the
government, 14 employers and 14 labours (workers). The tenure of this body is 03 years. It meets several times in a year
to take decisions on the programmes of the I.L.O.
The functions of this body are as follows:
i. To co-ordinate work of the organization.
ii. To prepare agenda for each session and subject to the decision of the I.L.C. to decide what subject should be included
in the agenda of the I.L.C.
iii. To appoint Director General of the office.
iv. To scrutinize the budget.
v. To follow up the implementation of the conventions and recommendations adopted by the I.L.C. by member states.
vi. To fix the date duration and agenda of the Regional conference.
vii. To seek advisory opinion from the International court of justice with the consent of I.L.C.
3. The International Labour Office: It is the third major and important organ of the I.L.O. The Director general of the
I.L.O. is the chief executive of the secretarial. He is appointed by the Governing Body. His tenure is for 10 years and his
term may be extended by the Governing Body.
The functions of this body are as follows:
i. To prepare documents on the times of the agency for the conference.
ii. To assist Governments informing legislations on the basis of the decisions of the I.L.L.
iii. To carry out its functions related to observation of the conventions.
iv. To bring out publications dealing with industrial labour problems at the International interest.
v. To collect and distribute information of International Labour and social problems.
Impact of ILO on the Indian Labour
India is a member of the I.L.O. since its inception and it gave great fillip to labour legislation in India. India has adopted
many of the conventions and recommendations on International standards for improvement in labour conditions. Under
article 3 of the constitution of the I.L.O. India has been nominating non-government delegates and advisors to the I.L.O.
every year.
The I.L.O. has so far adopted 173 conventions and 180 recommendations. India has ratified 36 conventions. The
conventions ratified by India have been incorporated in the labour legislation. The I.L.O. standards have a decisive
(important) impact on the factory, mines, social security and wages legislation in India. The I.L.O. has also greatly
influenced the trade union movement in India.
The AITUC owes its immediate origin to it. Indias commitment to the ILO is reflected in its adherence to the Institution
of tripartism as a novel-method of researching labour management conflicts. The ILO standards have influenced Indian
labour legislations.

Q.7) Explain in detail employers organization.
Employers Organization
Under the Trade Unions Act, the term trade union also includes employers organizations. But strictly speaking, an
employers association means formal body of employers only. According to Mr. Naval Tata, the objectives of an
employers association are: (i) to promote collective bargaining; (ii) to develop healthy and stable industrial relations; (iii)
to bring employers viewpoint to the notice of the Government; and (iv) to represent employers at national and
international forums.
There are at present more than 800 registered associations of employers in India. These are of three types:
1. Local association to promote the interests of employers in particular industry or city, e.g., Indian Jute Mills Association.
Indian Sugar Mills Association, Bombay Mill Owners Association.
2. Regional associations such as the Southern Indias Mill Owners Association which serve the needs of employers in a
particular region.
3. National or apex associations which coordinate the efforts of local and regional associations. These are federations to
which local and regional associations are affiliated. Federation of Indian Chambers of Commerce and Industry (FICCI),
Confederation of Indian Industry (CII), Council of Indian Employers (CIE), Associated Chambers of Commerce and
Industry (ASSOCHAM), All India Manufacturers Organization (AIMO), All India Organization of Employers (AIOE),
Employers Federation of Indian (EFI) are examples of these federations. In the public sector, Standing Conference of
Public Enterprises (SCOPE) is a multipurpose organization.
These federations perform several functions:
1. Advice: They advice member associations on complex legal provisions.
2. Education: They organize seminars, conferences and training programmes to educate employers on industrial labour
and other relevant issues.
3. Communication: They keep measures informed of new developments in economy, Government policy, labour laws,
etc. for this purpose, they bring out publications.
4. Representation: These federations represent the viewpoint of employers before Government and international
authorities.
National Commission on Labour has made the following recommendations about employers associations:
i. They shall promote collective bargaining at various levels.
ii. They can encourage their members to observe and implement bipartite and tripartite agreements.
iii. They should ensure that employers expeditiously implement wage awards.
iv. They should work for elimination of unfair labour practices on the part of employers.
v. They should encourage members to adopt personnel policies conducive to industrial peace and higher productivity.
vi. They should arrange the education of employers in the concept of labour participation in industry.
vii. They should promote rationalization of organization and management to improve productivity.
viii. They can work towards collective welfare of their members through training, research and communication in the field
of industrial relations.
Q.8) Discuss the growth and development of trade union in detail.
Trade Union Growth and Development in India
Trade union as per Trade Union Act 1926 Any combination formed primarily for the purpose of regulating the
relations between workmen and employers or workmen and workmen or employers and employers or for imposing
restrictive conditions on the conduct of any trade or business and includes any federation of two or more trade unions.
From the above definition it is clear that Trade union is not just an association of the workmen of a factory or a trade or a
business but also can be formed by officers and managers. Trade union movement in India was started and led by
philanthropists and social organizations and not by the workers.
Bombay Presidency - by servants of India society
Eastern India - by Brahmo Samaj
South India centered around Madras - by Theosophical Society
Trade union is a direct product of Industrialization and a very recent development. In India, the foundation of modern
industry was laid between 1850 and 1870. Prior to that trade was confined to individuals and families like craftsmen and
artisans. They had expertise and specialized skills which was inherited by their offsprings. After Industrial revolution,
these people started losing their individual identities and had to join factories to earn their livelihood and compete with
mass production. There was a psychological dislocation as they were losing their identities.
Indian trade union movement can be divided into three phases.
The first phase falls between 1850 and 1900 during which the inception of trade unions took place. During this period of
the growth of Indian Capitalist enterprises, the working and living conditions of the labour were poor and their working
hours were long. Capitalists were only interested in their productivity and profitability. In addition to long working hours,
their wages were low and general economic conditions were poor in industries. In order to regulate the working hours and
other service conditions of the Indian textile labourers, the Indian Factories Act was enacted in 1881. As a result,
employment of child labour was prohibited. Mr. N M Lokhande organized people like Rickshawalas etc., prepared a study
report on their working conditions and submitted it to the Factory Labour Commission. The Indian Factory Act of 1881
was amended in 1891 due to his efforts. Guided by educated philanthropists and social workers like Mr. Lokhande, the
growth of trade union movement was slow in this phase. Many strikes took place in the two decades following 1880 in all
industrial cities. These strikes taught workers to understand the power of united action even though there was no union in
real terms. Small associations like Bombay Mill-Hands Association came up.
The second phase of The Indian trade union movement falls between 1900 and 1947. This phase was characterized by
the development of organized trade unions and political movements of the working class. It also witnessed the emergence
of militant trade unionism. The First World War (1914-1918) and the Russian revolution of 1917 gave a new turn to the
Indian trade union movement and organized efforts on part of the workers to form trade unions. In 1918, B P Wadia
organized trade union movements with Textile mills in Madras. He served strike notice to them and workers appealed to
Madras High Court because under Common Law, strike is a breach of law. In 1919, Mahatma Gandhi suggested to let
individual struggle be a Mass movement. In 1920, the First National Trade union organization (The All India Trade Union
Congress (AITUC)) was established. Many of the leaders of this organization were leaders of the national Movement. In
1926, Trade union law came up with the efforts of Mr. N N Joshi that became operative from 1927.
The third phase began with the emergence of independent India (in 1947), and the Government sought the cooperation of
the unions for planned economic development. The working class movement was also politicized along the lines of
political parties. For instance Indian national trade Union Congress (INTUC) is the trade union arm of the Congress Party.
The AITUC is the trade union arm of the Communist Party of India. Besides workers, white-collar employees, supervisors
and managers are also organized by the trade unions, as for example in the Banking, Insurance and Petroleum industries.
Q.9) What is Trade union? What are the objectives of the formation of trade unions? Explain the role and function
of Trade unions.
Meaning & Definition of Trade Union
According to Yoder, a trade union is a continuing, long-term association of employees. Formed and maintained for the
specific purpose of advancing and protecting the interest of members in their working relationship. According to Giri,
trade union is a voluntary organization of workers formed to promote and protect their interests by collective action.
Analysis of these definitions will reveal the following characteristics of trade unions:
1. Association: A trade union is an association or combination of employees.
2. Voluntary: Membership of a trade union is voluntary. Generally, there is no legal or other pressure to join a trade
union and a person can join or leave the union on his free will.
3. Permanent: A trade union is a continuing or permanent rather than a temporary or casual combination.
4. Community of Interest: Members of a trade union have common interests and problems, which motivates them to
unite. A union seeks to regulate relations between employers and workers.
5. Collective Action: Trade unions always act through united action of members to protect and promote their economic
and other interest.
6. Sub-system: A trade union is a sub-system of the social system. Therefore, its character undergoes change with
changes in economic, social, legal and political conditions in the country. A union functions collectively to protect and
promote the interests of its members within a given socio-economic system together in a body.
Objectives of Trade Union
The main objectives of trade unions are as follows:
i. To secure for the worker fairer wages in the light of the cost of living and the prevailing standards of living;
ii. To improve working conditions by securing shorter working hours, better leave facilities, adequate social security,
better housing and education and other welfare benefits;
iii. To assure the workers a share in the increased profitability of industry through payment of adequate bonus;
iv. To ensure security of employment by resisting retrenchment;
v. To protect workers against exploitation and victimization by the capitalists;
vi. To secure for workers a say in management and industrial democracy thereby bringing about a new social order; and
vii. To protect the larger interest of society by assisting in the improvement of trade and industry.
Functions and Role of Trade Union
Trade unions perform several functions to achieve their objectives. The main functions of a trade union are as follows:
1. Protection: Trade unions safeguard workers against all sorts of exploitation by the employer and political parties. A
union provides protection from unfair labour practices and atrocities of management. It also tries to revise the status of
workers in industry and society.
2. Proper Standard of Living: Unions attempt to secure for workers fair wages, proper working conditions and welfare
facilities like health, housing, recreation and social security so as to ensure desirable living standards for them.
3. Grievance Redressal: A trade union takes up the individual and collective grievances of workers with the employer.
4. Collective Bargaining: A trade union negotiates and bargains with the management to settle terms and conditions of
employment.
5. Participation: Trade unions work for achieving a better say of workers in the management of matters which directly
influence the interests of workers. In this way, unions attempt to establish democracy in industry.
6. Protests: Unions organize demonstrations, strikes and other forms of protest to press the demands of workers. During a
strike the union may provide financial and other help to members when the employer stops wages.
7. Education: Many trade unions make arrangements for the education of workers and their family members. Unions
make workers conscious of their rights and duties and aware of the need for technological changes.
8. Welfare and Recreation: Some unions provide recreation, sports, and other welfare facilities for their members.
9. Legislation: Trade unions lobby with political parties and political leaders to secure legislative protection for workers
from the Government.
10. Representation: Trade unions represent working class in various national and international forums such as Indian
Labour Conference and International Labour Organization (ILO).
11. Advice: A trade union may provide advice and information to management on human resource policies and practices.
Unions also impress upon workers the need to exercise restraint in the use of their rights. Unions assist employers in
maintaining discipline and in increasing productivity.
12. Communication: A trade union serves as a link between employers and workers so as to develop mutual
understanding and cooperation between the two sides. Unions can also instill among workers a sense of responsibility
towards industry and society. They can play a vital role in tackling social evils and in promoting national integration.
Role of Trade Unions
Trade union performs various roles regarding the various classes of the society as follows:
Role towards the trade union member.
Role toward the industrial organization.
Role towards the Trade Union organization.
Role toward society.
1. Role towards the trade union member:-
To safeguard the workers conditions and parties, education, housing, co-operative
To ensure health, safe, protect conducive work condition.
To guarantee a fair deal and social justice to workers.
To make the workers aware about their rights and duties, settle the disputes through negotiation.
2. Role towards the Industrial Organization
To promote of interest
To help in maintenance of discipline
To create opportunities for workers participation in management and to facilitate communication with
management.
Maintain harmonic relationship between workers and management
3. Role towards the Trade Union organization
To improve financial position and improve workers network of commercial between union & its members.
To maintain strengthen, necessary records, resolve the problem.
To manage the Trade union organization on scientific lines
To train members to assume leadership position.
4. Role towards Society:
To actively participate in the development of the programs of national development such as family planning, fore
situation effective implementation apply cooperation etc.
To enable unorganized sector to organize itself.
Q.10) Why workers join trade unions? Discuss. Explain the problems of trade union. What measures can be taken
to strengthen trade unions.
Workers organize themselves into a trade union due to the following reasons:
1. Steady Employment: Workers form a trade union to secure for them security of service. Unions take political action to
get legislative protection against dismissal. They also resist any attempt of the employer to retrench workers.
2. Economic Benefits: An individual joins union because union has great bargaining power to get these economic
benefits (pay scale, wages, bonuses etc) for workers.
3. Check on Arbitrary Actions: If workers are not united, an employer may adopt arbitrary policies and procedures to
exploit them. Workers form unions to ensure rational and uniform personnel policies and their unbiased implementation
on the part of management.
4. Economic Security: Unions protect their members from various economic hazards such as illness, accidental injury,
and unemployment. They contact employers to pay compensation and retirement benefits. Unions also have funds to
provide financial support to distressed members.
5. Self-Expression: Workers join unions to communicate with management. Union serves as a platform through which a
worker can make his voice heard by the employer.
6. Sense of Belonging: An ordinary worker has little sense of belonging in modern industry. By joining a union he can
associate with fellow workers and gain social respect. He can also discuss his problems with leaders of the trade union.
Trade unions generate a spirit of self-reliance and self-respect among workers.
7. Recognition and Participation: Workers can gain recognition as equal partners with employer by joining unions.
They can participate in management of industry. They can influence decisions, affecting their interests, through collective
bargaining.
Problems and Shortcoming of Trade Union in India
Trade union movement in our country suffers from the following weaknesses:
1. Uneven Growth: Trade unions are concentrated in large scale industry sector and in big industrial centres. There is
very little trade union activity in small scale sector, agricultural labour and domestic sector. Many workers still regard
their employers as their mai-baap and do not join unions. Differences of caste, language, religion, etc. among workers
also weaken trade unions. Trade unionism has touched only a portion of the working class in India.
2. Small Size: Most of the unions have low membership. Though the number of unions and union membership are
increasing, average membership is inadequate. Any seven workers can form a union under the Trade Union Act, 1926 and
get it registered.
3. Weak Financial Position: The average yearly income of unions is very low and inadequate. The subscription rates are
low and many members do not pay the subscription in time. Workers are apathetic towards the unions and most of them
are also poor. In order to increase the number of members, unions keep subscription rates low. Due to their financial
weakness, most of the unions are not in a position to undertake welfare programmes for workers.
4. Political Leadership: Leadership of trade unions is not rooted in the working class. Trade unions are under the
leadership and control of political parties and outsider. Politicians exploit unions and workers for their personal and
political gains. Strikes are organized and prolonged for personal prestige and negotiations with employers breakdown due
to political considerations. Thus, the political leadership is very harmful to the trade union movement in India.
5. Multiplicity of Unions: Trade Unions Act encourages a small sector of workers to form separate unions. Political
outsiders establish unions of their own to increase their political influence. In some cases employers encourage split in
unions to undermine their bargaining power.
6. Inter-Union Rivalry: Multiple unions create rivalry. Unions try to play down each other in order to gain greater
influence among workers.
7. Problem of Recognition: Employers are under no obligation to give recognition to any union. Many a times, the
employers have refused recognition to trade unions on the contention that unions consist of only a minority of workers or
that two or more unions exist.
8. Absence of Paid Office-Bearers: Union activists working on honorary basis devote only limited time and energy to
union activities. Union officers lack adequate knowledge and skill due to lack of proper training. Weak financial position
and political leadership are the main reasons for this state of affairs.
9. Apathy of Members: Majority of workers do not take keen interest in union activities. The attendance at the general
meetings of unions is very poor. Trade unionism can make little progress until members appreciate the need for
supporting the movement for a common cause and take active part in the affairs of unions.
10. Opposition from Employers: Trade unions in India have to face opposition from employers. Many employers try to
intimidate and victimize labour leaders, start rival unions and bribe union officials.
Measures for Strengthening Trade Unions
Some of the steps that can be taken to make trade unions successful are given below:
1. Strong Base: In order to develop a strong trade union movement, it is essential to widen the unionism to unorganized
sector and small town. Small scale and domestic sectors should form trade unions. The membership of unions should also
be increased. For this purpose, rigorous membership campaign should be launched.
2. Financial Stability: To improve the financial condition of the unions, the minimum subscription should be raised from
25 paise to Re. 1 per month. This will reduce the chances of defaults in payments by members and thereby improve the
financial position of unions.
3. One Union is One Industry: The principle of one union in one industry should be adopted to avoid multiple unions
and inter-union rivalry.
4. Internal Leadership: Leaders of union should be developed from within the rank and file of the workers. This will
help to eliminate party politics and outsiders. Unions should throw away the control of political parties and politicians.
5. Recognition of Unions: It should be made obligatory for employers to recognize the union in all undertakings
employing 100 or more workers. A trade union seeking recognition as a bargaining agent should have a membership of at
least 30 per cent of workers in the establishment. The minimum membership should be 25 per cent. The recognized union
should be statutorily given certain exclusive rights and facilities.
6. Paid Officials: Full time paid officials should be appointed to manage the affairs of trade unions. These officials should
be competent and sincere. They should be men of integrity, able to evaluate workers aspirations and strong enough to
negotiate with employers on equal basis. They should be paid well.
Q.11) What is meant by discipline and its objectives? Describe the statutory provisions concerning discipline in
Indian Industry.
Meaning & Definition of Discipline
Discipline means orderliness or the absence of disorder, chaos and confusion in human behavior and action. According to
Richard D. Calhoon, discipline may be considered as the force that prompts individuals or groups to observe rule,
regulations, standards and procedures deemed necessary for an organization.
Objectives of Discipline
The objectives of discipline are as under:
i. To gain willing acceptance of the rules, regulations, standards and procedures of the organization from the employees.
ii. To develop the feeling of cooperation among the workers.
iii. To maintain good industrial relations in the organization.
iv. To promote morale and efficiency among the workers.
v. To develop a sense of tolerance and respect for human dignity.
Statutory Provisions Concerning Discipline
The Indian law on discipline consists of the following:
1. Industrial Employment (standing Orders) Act, 1946: This Act requires employers in specified industrial
establishments to define precisely the conditions of employment including the rules of discipline and procedures for
punishment for indiscipline and also to make them known to the workmen. Standing orders define disciplinary action for
misconduct, acts or omissions which constitute misconduct and various forms of punishment. Every act of indiscipline is
called misconduct.
Major Acts of Misconduct
1. Disobedience or willful insubordination.
2. Theft, fraud or dishonesty in connection with the employers business or property.
3. Willful damage or loss of employers goods or property.
4. Taking or giving bribes or any illegal gratification.
5. Habitual absence without leave or absence without leave for more than ten days.
6. Habitual late attendance.
7. Habitual breach of any law applicable to the establishment.
8. Habitual negligence or neglect of work.
9. Frequent repetition of any act or omission for which fine may be imposed.

2. The Industrial Disputes Act, 1947: Under Sec. 11-A of this law a Labour Court, Labour Tribunal or National Tribunal
can set aside the order of discharge or dismissal of any employee. In case of protected workmen prior permission for
dismissal and discharge is essential. These protected workmen are trade union officers who are declared as such to save
them from being victimized for raising the dispute.
3. The Payment of Wages Act, 1936: Sec.8 of this law places restrictions on the imposition of fines on an accused
employee.
Q.12) Why discipline is important in industry? Discuss the code of Discipline in industry.
Introduction: - Discipline is very essential for a healthy industrial atmosphere and the achievement of organizational
goals. Discipline in industry may be described as willing cooperation and observance of the rules and regulations of the
organization. Discipline is essential to a democratic way of life.
According to Brembless, Discipline does not mean a strict and technical observation of rigid rules and regulations. It
simply means working, co-operating and behaving in a normal & orderly way, as any responsible person would accept an
employee to do
Importance of Discipline in industry
Discipline is the very essence of life. The goals or objectives of industrial discipline should be clearly stated.
1. To ensure that employers & employee recognize each others rights and obligations.
2. To promote constructive cooperation between the parties concerned at all levels.
3. To maintain discipline in industry.
4. To secure settlement of disputes & grievances by negotiation, cancellations voluntary arbitration.
5. To eliminate all forms of coercion violence in industrial relation.
6. To avoid work stoppages.
7. To facilitate the free growth of trade unions.
8. Respect for the human personality.
9. Management personnel should set high standards.
Discipline is the very precious step in life everywhere and every place. An industrial organisation is an organic whole in
which a variety of forces act in union towards the attainment of its ultimate aims. Obviously, smooth and effective
functioning demands a high degree of co-ordination among the various elements which from integral pacts of an
organization. In an industry big or small manpower is the major factor. Manpower can be used effectively only if there is
discipline in the industry. Maintain of discipline is a prerequisite for the attainment of maximum productivity not only of
the workers but also of the whole nation. In this way discipline is important in industry.
Code of Discipline
The Indian Labour Conference at its 15
th
session in 1957 involved a code of industrial discipline. The code voluntarily
binds the employers and workers to settle all grievances and disputes by mutual negotiations, conciliation and voluntary
arbitration. The main features of this code are:
(i) It prohibits strikes and lock outs without proper notice and also prohibits intimidation, victimization, go-slow tacties,
violence, coercion or instigation by both the parties.
(ii) There shall be no on one-sided action in any matter by either party.
(iii) The existing machinery for the settlement of disputes should be followed and the awards and agreements should be
implemented without any delay.
(iv) A common grievance procedure should be provided for after a careful consideration and negotiations for the
settlement of disputes.
(v) Both the parties should attempt to avoid any action which may disturb industrial peace in the industry.
(vi) The employers will not increase workloads without prior agreement with the workers.
(vii) The employers will provide full facilities for unfettered growth of trade unions. However unfair labour practices
should be discouraged.
(viii) Prompt action should be taken against those officers who instigate the workers for the breach of its discipline.
(ix) The workers will not indulge in any trade union activity during working hours.
(x) The workers will implement their part of awards and settlements promptly and will take action against those office
bearers of the union who are responsible for the breach of code.
(xi) The unions shall discourage the negligence of duty, careless operation, damage to property, disturbance of normal
work and insubordination.
The code is undoubtedly a major step in the direction of discipline but it is a matter of sorrow that no party is sincere in
their effort to employment the code seriously. Strikes, lockouts, gherao, and go slow tactic are still followed in a large
number. It is not wrong to say that both the parties have accepted the code by letters only and not by their conduct. It
should be remembered that merely having a code cannot resolve the problem unless parties should make a determined bid
to observe it both in letters and spirit.
Q.13) To often discipline is thought of only in the negative sense. In reality positive discipline is more effective and
plays a longer role in business management. Discuss the statement and point out the approach, principles, and
procedures to be borne in mind while taking the disciplinary action.
Or
Briefly discuss the responsibility of discipline. What are approaches, principle procedures of industrial disciplinary
action?
Discipline is the orderly conduct of affairs by the members of an organization.
There are two aspects of discipline
Positive and negative aspects
Positive aspects:
Positive discipline can be achieved through rewards and effective leadership. Positive discipline promotes cooperation and
coordination with a minimum of formal organization. It reduces the need for personal supervision required to maintain
standards.
Negative aspects:
Negative discipline is traditional concept and is identified with ensuring that subordinates adhere strictly to the rules and
punishment is meted out in the event of indiscipline.
Approaches
Basically, there are five approaches regarding to manage indiscipline or misconduct.
1. Judicial Approach: It is commonly followed in India. The present day manager has to handle a variety of disciplinary
issues. His right to hire and dismiss is curbed to a great extent, especially where unionized employees are concerned. The
complexity is increased in this arbitrary managerial function due to intervention by the government by providing
legislation for governing terms of employment.
2. Human Relation Approach: Human relation is a systematic developing body of knowledge devoted to explaining the
behaviour of individual in the working organization.
3. Human Resources approach: The approach calls for treating every employee as a resources and an asset to the
organization before punishing the workers, the cause for indiscipline has to be ascertained.
An analysis of the cause is made, to find out whether indiscipline is due to the failure of his training & motivating
system & the individuals own failure to meet the requirements, and accordingly corrections are made.
4. The group discipline approach: The management is this approach sets and conveys well established norms and tries
to involve two groups of employees. The group as a whole control indiscipline and awards appropriate punishment. The
trade under may also act as a disciplinary agency.
5. The leadership approach: Every supervisor or manager has to guide, control, train, develop, lead a group and
administer the rules of disciplines.
Principles and Procedure for Disciplinary Action
Despite best efforts, acts of indiscipline occur and it becomes necessary to take a disciplinary action. While taking
disciplinary action the following Principles of natural justice should be followed:
i. The employee charged should be given an opportunity to present witness of his own choice on whom he relies.
ii. The employee should be given the right to cross examine managements evidence.
iii. The enquiry against the employee should be fair and impartial.
iv. The punishment award should not be out of proportion to the misconduct committed.
v. Disciplinary action should be taken in private so as not to hurt the ego and social status of the employee.
vi. Disciplinary action should be taken by the immediate boss of the employee.
vii. Disciplinary action should be consistent for all.
viii. The superiors behavior towards the employee should remain as it was before taking the disciplinary action.
Procedure for Disciplinary Action
The procedure for taking disciplinary action involves the following steps:
1. Preliminary Investigation: First of all a preliminary enquiry should be held to find out the misconduct behaviour or
situation.
2. Issue of a charge sheet: Charge sheet is merely a notice of the charge and provides two employees an opportunity to
explain his conduct. Charge sheet each charge should be clearly defined & specified.
3. Suspension pending Enquiry: In case the change is given to the employee along with charge sheet. According to the
industrial employment (Standing order) Act 1946, the suspended workers is to paid a subsistence allowance equal to one-
half of the wages. For the first 90 days of suspensions and third-fourths of the wages for the remaining period of
suspension if the delay in the completion of disciplinary proceeding is not due to workers conduct.
4. Notice of enquiry: In case the workers admit the change, in his reply to the charge sheet, without any qualification.
The employer can go ahead in awarding the punishment without further enquiry. But if the worker does not admit the
charge & the charge merits major penalty, the employer must hold enquiry to investigator into the charge. Proper and
sufficient advance notice should be given to the worker of the enquiry.
5. Conduct of inquiry: The inquiry should be conducted by an impartial and responsible efficiency.
6. Recording the findings: The enquiry officer must recordable the conclusion and findings.
7. Awarding punishment: The management should decide the punishment on the basis of finding of an-enquiry. Post
record of worked and gravity of the misconduct.
8. Communicating punishment: Communicating punishment to the worker should be communicated to him quickly.
The letter of communication should contain reference to the charge sheet, the enquiry and the findings.
Q.14) Discuss the essentials of a sound disciplinary system. How does a Red Hot-stove rule impact the disciplinary
action?
Essentials of a Good Disciplinary System (Principles of Industrial Discipline)
1. Knowledge of Rules: Both the supervisor and the worker should clearly understand the rules and regulations of the
organization. This code should contain in writing the rules, regulations and procedures considered necessary to maintain
discipline. These must be known to all concerned along with the punishment for their violations.
2. Prompt Action: All violations and misconduct should be promptly enquired into. When the penalty is imposed
immediately after the misconduct, the offender identifies the punishment with the act he has committed. Therefore, he
tries to avoid the offence in future. Punishment should not be delayed otherwise it will lose effect.
3. Fair Action: All persons should receive the same punishment for the same offence. If different rules were applied to
different persons management would be accused of favouritism. The disciplinary system should be based on the principles
of natural justice.
4. Well-defined Procedure: The procedure to be used for disciplinary action should be clearly laid down. Definite and
precise provisions for appeal and review of all disciplinary actions should be provided for.
5. Constructive Approach: The disciplinary system should be as far as possible preventive rather than punitive. Self-
discipline is the best form of discipline and management should encourage such sense of discipline among employees.
After taking the disciplinary action the supervisor must assume a normal attitude towards the worker.
6. Review and Revision: All rules and regulations should be appraised at regular intervals to ensure that they are
appropriate to the changing times. If a particular rule is violated time and again, it should be thoroughly studied to
discover and remove the causes of such violations.
Red Hot-stove Rule
Douglas McGregor has suggested this rule to guide managers in enforcing discipline. The rule is based on an analogy
between touching a red hot stove and violating rules of discipline. When a person touches a hot stove,
1. The burn is immediate.
2. He had warning as he knew that he would get burn if he touched it.
3. The effect is consistent. Everyone who touches a red hot stove would be burned.
4. The effect is impersonal. A person is burned because he touched the stove and not because of who he is.
5. The effect is commensurate with the gravity of misconduct. A person who repeatedly touches the hot stove is burnt
more than one who touched it only once.
Thus, the comparison between touching a hot stove and administering discipline is apparent. Therefore, the administration
of discipline should be immediate, with warning, consistent, and impersonal. These guidelines are consistent with the
positive approach to discipline.
Q.15) Discuss the disciplinary action for penalties and punishment in case of any misconduct occur in the
organization. Explain guidelines can be followed for disciplinary action?
Disciplinary actions: penalties and punishments:
Discipline particularly positive discipline follows a typical sequence from mild to harsh: these vary from oral warning,
written notice, suspension, demotion, pay cut and dismissal in that order. These are discussed below:
1. Oral warning: The mildest form of discipline is the oral warning. This is actually awarded on minor offences like late
coming, absents, etc. Which are committed for the first time. A common practice followed in this regard is o make a
temporary record of this warning and place the same in the employees file. Once the employee has shown better
performance and willingness to adhere to rules and regulations, the record of the oral reprimand is removed from his file.
2. Written Notice: The second step in order of severity in progressive discipline is the written notice or warning. This is
awarded for repeated minor offences or some lapses. The procedure involved in writing of the warning is the same as the
oral warning. The only difference is that the discussion concludes with the employee being told that a written warning will
be issued. Then, the manager writes up the warning. A copy of the warning is sent to the personnel department. Like oral
warning, organizations may allow employees to purge their personnel file of these warnings after some period of time, i.e.
usually two years of proper work behavior.
3. Suspension: Suspension, also called lay off, is the next step taken in progressive discipline. Suspension as punishment
is awarded for some major/serious offences. Suspension may be for a certain period ranging from one day to several
weeks or months. During the suspension period, the employee is paid a reduced pay known as subsistence allowance.
Full pay can be given if the suspension is withdrawn.
However, suspension can have some implications for both the organization and the employee. For organization,
suspension means loss of the employee for the lay off period. It is particularly so if the suspended employee is a skilled
one. From the employee standpoint, suspension can result in a more negative frame of mind than before the layoff.
Nonetheless, one reason why management considers suspending employee is to give an awakening to the problem
employee.
4. Demotion: For the serious offences where suspension has not been effective and management wants to avoid
dismissal, demotion is considered as an alternative punishment. It is noteworthy that, in contrast to the previous
disciplinary actions, demotions is not temporary, but a constant one. It has serious implications for employee morale and
motivation.
5. Pay cut: Another alternative, also rarely applied in practice, is cutting the problem employees pay. This is awarded
most when offence led to damage or loss of property. A part of loss is recovered from such pay cut of the employee.
6. Dismissal/Discharge: Dismissal is the ultimate disciplinary action taken against problem employee. This punishment is
awarded only for the most serious offences involving integrity. And discharge is use to denote removal of an employee
from service by way of punishment. Both dismissal and discharge lead to employee separation from the organization.
Though dismissal and discharge have the same result i.e., termination of service of the employee, dismissal is a more
severe punishment. There is a stigma attached to the expression dismissal which makes it a disqualification for future
employment.
Guidelines of a Disciplinary Action:
Disciplinary action especially punitive one produces pains and displeasures for the accused employees. Hence, meticulous
care is called for while disciplinary action. Over time, the behavioral scientist have developed some guidelines to indicate
how discipline be administered. Some of the guideline for effective disciplinary action are:
1. Disciplinary action should be corrective rather than punitive: The objective of disciplinary action is not to deal out
punishment but to correct an employees undesirable behavior. Therefore disciplinary action must not be thought of a
punitive action.
2. Disciplinary action should be progressive: it is generally desirable for desirable to be progressive. So to say,
disciplinary action must follow a series of sequential actions or steps with increasing severity of punishment in every next
step. For example, progressive discipline should begin with an oral warning and proceed through a written warning,
suspension, loss of seniority, loss of increment, and, only in most serious cases dismissal or some such harsh punishment.
3. Disciplinary action should follow the Hot stove rule: one effective guideline to administer discipline is to follow
what is popularly known as the hot stove rule. This rule suggests that applying discipline is much like touching a hot
stove.
The burn is immediate.
He had warning as he knew that he would get burn if he touched it.
The effect is consistent. Everyone who touches a red hot stove would be burned.
The effect is impersonal. A person is burned because he touched the stove and not because of who he is.
Thus, the comparison between touching a hot stove and administering discipline is apparent. Therefore, the administration
of discipline should be immediate, with warning, consistent, and impersonal. These guidelines are consistent with the
positive approach to discipline.
Q.16) Define the meaning of misconduct and its types.
What is Misconduct?
Any act or omission on the part of an employee which is a breach of any duty, obligation or assignment arising under or
flowing from any law or contract of employment or service rules or standing orders, settlements or awards or improper
conduct or wrongful behavior is a misconduct.
Types of Misconduct
There are two types of misconducts i.e., Minor and Major misconduct. These are given below:
Minor Misconduct
The following acts or omission on the part of an employee shall amount to minor misconduct:
1. Late coming,
2. Absence from duty without leaves for a period of less than six days,
3. Loitering, gossiping in department during working hours,
4. Failure to wear tight clothes/specified uniform,
5. Negligence of duties or neglect of work.
Major Misconduct
The following acts or omission on the part of an employee shall amount to major misconduct:
1. Willful insubordination or disobedience of any lawful and reasonable order of a superior.
2. Going on legal strike or abetting, inciting, instigation.
3. Willful slowing down in performance in work or instigation thereof.
4. Theft, fraud or dishonesty in connection with the employers business or property.
5. Taking or giving bribes or any illegal gratification.
6. Habitual absenteeism without leave for more than 10 consecutive days or over staying the sanctioned leave without
sufficient grounds.
7. Habitual breach of any standing order or any law applicable to establishment.
8. Collection without the permission of the manager or any money within the premises of establishment.
9. Engaging in trade within the premises of establishment.
10. Drunkenness, Riotous, Disorderly or indecent behavior on the premises of the establishment.
11. Commission of any acts subversive of discipline or rude behavior on the premises of the establishment.
12. Habitual neglect of work or habitual negligence.
13. Canvassing for union membership or collection of union funds within the premises of the establishment.
14. Willful damage to work in process or any property of the establishment.
15. Holding meetings inside the premises of establishment without the permission of the manager.
16. Disclosing to any unauthorized person any information in regard to the processes of the establishment.
17. Gambling within the premises of establishment.
18. Smoking or spitting on the premises of the establishment, where it is prohibited.
19. Failure to observe safety instructions notified by the employer or interference with the safety devices.
20. Distributing or exhibiting within the premises of establishment and bills, pamphlets and posters.
21. Refusal to accept a charge sheet order or other communication served in accordance with the standing orders.
22. Unauthorized possession of lethal weapon in the establishment.
Q.17) What are the causes of indiscipline (misconduct) in Indian industry? Give suggestions to maintain discipline.
Causes of Misconduct (Indiscipline)
1. Unfair Management Practices: Management sometimes indulges in unfair practices like:
Wage discrimination
Non-compliance with promotional policies and transfer policies
Discrimination in allotment of work
Defective handling of grievances
Payment of low wages
Delay in payment of wages
Creating low quality work life etc.
These unfair management practices gradually result in indiscipline.
2. Absence of Effective Leadership: Absence of effective leadership results in poor management in the areas of
direction, guidance, instructions etc. This in turn, results in indiscipline. I am sure you remember the importance of
leadership as studied in the last semester. If you do (which I suppose you do), you can relate the importance of effective
leadership with handling indiscipline.
3. Communication Barriers: Communication barriers and absence of humane approach on the part of superiors result in
frustration and indiscipline among the workers. The management should clearly formulate the policies regarding
discipline. These policies should be communicated and the policies should be consistently followed in the organizations.
The management should also be empathetic towards the employees.
4. Inadequate attention to personnel Problems: Delay in solving personnel problems develops frustration among
individual workers. The management should be proactive so that there is no discontent among the workers. It should
adopt a parental attitude towards its employees. However it should be noted that no relationship can continue for long if it
is one sided. What I am implying here is that the workers should also live up to their commitments. They should be
reasonable in their demands.
5. Victimization: Victimization of subordinate also results in indiscipline. The management should not exploit the
workers. It is also in the long-term interest of the management to take care of its internal customers (Remember we have
discussed this term in class before!)
6. Absence of Code of Conduct: This creates confusion and also provides chance for discrimination while taking
disciplinary action. We will be discussing Code of Discipline in details etc.
Q.18) Discuss the term grievances with its types. What are the advantages and disadvantages of grievance handling
procedure?
Grievances: Grievance can be defined as any discontent or dissatisfaction with any aspect of the organization. When a
complaint remains unattended and the employee concerned feels a lack of justice and fair play, then the dissatisfaction
grows and assumes a status of grievance.
According to Dale Yoder, Grievance is a written complaint filed by an employee and claiming unfair treatment.
According to keith Davis, Grievance is any real or imagined feeling of personal injustice which an employee has
concerning his employment relationship.
Types of Grievances
A grievance may take any one of the following forms:
1) Factual: The employer-employee relationship depends upon the job contract in any organizations. This contract
indicates the norms defining the limits within which the employee expects the organization to fulfill his aspirations, needs
or expectations. For example, when an employee is not given promotion which is due to him or when work conditions
are unsafe, grievances of employee relating to these issues are based on facts. In other words, these grievances reflect the
drawbacks in the implementation of the organizational policies.
2) Imaginary: When an employees dissatisfaction is not because of any valid reason but because of wrong perception,
wrong attitude or wrong information he has. Such a situation may create an imaginary grievance.
3) Disguised: An employee may have dissatisfaction for reasons that are unknown to him. In general, organizations
consider the basic requirements of their employees. Psychological needs of the employees such as need for recognition,
affection, power, achievement, etc., are normally unattended and ignored. For example, an employee complaining very
strongly about the working conditions in the office may in turn be seeking some recognition and appreciation from his or
her colleagues. Hence, disguised grievances should also be considered since they do have far-reaching consequences in
case they are unattended and ignored.
Advantages of Grievance Handling Procedure
It has following advantages:
1) It brings grievances into the open so that management can learn about them and try corrective action.
2) It helps in preventing grievances from assuming big proportions. The management catches and solves a grievance
before it becomes a dispute.
3) It provides employees a formalized means of emotional release for their dissatisfactions.
4) It helps in establishing and maintaining a work culture or way of life. As problems are interpreted in the grievance
procedure, the group learns how it is expected to respond to the policies that have been set up.
5) It enables the management to know the attitudes and feelings of employee concerning the policies, rules and practices
of the organization. With such knowledge necessary improvements in policies and rules can be made.
6) It acts as a check upon arbitrary and capricious management action. When a manager knows that his actions are subject
to challenge and review in a grievance system he becomes more careful in taking his decisions.
Disadvantages of Grievance Handling Procedure
It has following disadvantages:
1) It can be time consuming and costly
2) Human relations skills may be lacking to deal with the grievances at successive steps.
3) Procedures may vary from organizations to organization. Reprisals by management against grievant employees can
happen.
4) Management can delay a final decision, frustrating members and putting economic pressure on those affected,
particularly in discharge cases
5) Instead of being involved in actions to solve problems, members learn to sit back and expect the union to take care of
everything.
Q.19) What is Grievance handling mechanism? Explain in detail.
Grievance Handling Mechanism
Grievance may be any genuine or imaginary feeling of dissatisfaction or injustice which an employee experiences about
his job and its nature, about the management policies and procedures. Grievances take the form of collective disputes
when they are not resolved. Grievance arises when employees expectations are not fulfilled from the organization as a
result of which a feeling of discontentment and dissatisfaction arises. This dissatisfaction must crop up from employment
issues and not from personal issues.
The manager should immediately identify all grievances and must take appropriate steps to eliminate the causes of such
grievances so that the employees remain loyal and committed to their work. Effective grievance management is an
essential part of personnel management.
Disciplinary and grievance procedures are frameworks which provide clear and transparent structures for dealing with
difficulties which may arise as part of the working relationship from either the employers or employees perspective.
Process of Grievance Handling
The grievance handling procedure is one of the most important means available for employees to express their
dissatisfaction. It is also a means available to management to keep a check or relevant diagnostic data on the state of the
organizations health.
Steps involved in grievance handling are as follows:
i) Identify Grievances: Employee dissatisfaction or grievance should be identified by the management if they are not
expressed. If they are ventilated, management has to promptly acknowledge them.
ii) Define correctly: The management has to define the problem properly and accurately after it is identified/
acknowledged.
iii) Collect Data: Complete information should be collected from all the parties relating to the grievance. Information
should be classified as facts data, opinions etc.
iv) Analyze and Solve: The information should be analyzed, alternative solutions to the problem should be developed and
the best solution should be selected.
v) Prompt Redressal: The grievance should be redressed by implementing the solution.
vi) Implement and Follow-up: Implementation of the solution must be followed up at every stage in order to ensure
effective and speedy implementation.
Model of grievance procedure
The model grievance redressal procedure as shown in given figure suggested by the National Commission on Labour
involves following successive time-bound steps each leading to the next, in case of dissatisfaction:
1) The aggrieved worker in the first instance will approach the foreman and tell him of his grievance orally.
2) The foreman has to redress his grievance and if the worker is not satisfied with this redressal, he can approach the
supervisor.
3) The supervisor has to provide an answer within 48 hours. In the event of the supervisor not giving an answer or the
answer not being acceptable to the worker, the worker goes to the next step.
4) At this stage, the worker (either alone or accompanied by his departmental representative) approaches the Head of
Department who has to give an answer within three days.
5) If the Departmental Head fails to give an answer or if the worker is not satisfied with his answer, the worker may
appeal to the Grievance committee, consisting of the representatives of the employer and the employees.
6) The recommendations of this committee should be communicated to the manager within seven days from the date of
the grievance reaching it.
7) Unanimous (agreed) decisions, if any, of the committee shall be implemented by the management.
8) If there is no unanimity (agreement), the views of the members of the committee shall be placed before the manager for
his decision. The manager has to take a decision and inform the worker within three days.
9) The worker can make an appeal against the mangers decision and such an appeal has to be decided within a week.
Procedure Time Frame
Appeal against within a week

Manager

Grievance Committee

HOD

Supervisor

Foreman

Worker



3 Days


7Days unanimous

3Days

48 Hours
Model of Grievance Handling Procedure

Q.20) How do you measure labour turnover? What are the causes and effects of labour turnover? How can it be
minimized?
Or
Define labour turnover. How can it be measured? Discuss the causes of labour turnover.
Or
What are the costs of high labour turnover? Suggest measures to control it.
Labour Turnover
Labour turnover refers to the rate of change in the workforce of an enterprise during a given time period. It has been
defined as the time to time changes in the composition of the workforce that result from hiring, release and replacement
of employee. It is a measure of the extent to which old employees leave and new employees enter the service of a
concern.
Measurement of Labour Turnover
The following methods can be used to measure labour turnover:
i. Accession Method: In this method labour turnover is calculated by dividing the total accessions by average number of
employees during a specified period and multiplying it by 100. Total accessions mean the new employees joining the
payroll including transfers from the units of the company. The average number of employees means the number of
employees at the beginning plus the number of employees at the end divided by 2. Thus.
Number of employees joining the concern during the year
Turnover Rate = ______________________________________________ 100
Number of employees at the beginning of the year
+ number of employees at the end of the year 2

ii. Separation Method: Under this method labour turnover is estimated by dividing the total separations by the average
number of employees. Total separations simply all the employees who have quit the concern due to layout discharge,
retirement, death, resignation, etc. including transfers to other concerns. Thus,
Total separation during the year
Turnover Rate = _________________________ 100
Average number of employees

iii. Combined Method: Due to cyclical and seasonal fluctuations neither accession nor separation formula give correct
measurement. During prosperity separation may by nil. While during depression accession maybe zero. To minimize the
cyclical effects, companies use a combined formula under it.

(Accession + Separation during the year) 2
Turnover Rate = ___________________________________ 100
Average number of employees

iv. Replacement Method: According to this formula difference between accessions and separations is divided by the
average number of employees. Thus.
Accessions Separation during the year
Turnover rate = ________________________________ 100
Average number of employees

It is called net turnover rate or wastage rate.




















What Retains People
Causes of Labour Turnover
The causes of labour turnover may be put into two groups, i.e.,
(1) Avoidable causes and
(2) Unavoidable causes
1. Avoidable causes - These include:
(i) Dissatisfaction with jobs,
(ii) Dissatisfaction with remuneration,
(iii) Bad working conditions,
(iv) Odd hours of work,
(v) Lack of incentives and promotional avenues,
(vi) Lack of adequate recreational facilities,
(vii) Inadequate housing and medical facilities,
(viii) Poor worker-supervisor relationship,
(ix) Poor group relations,
(x) Discrimination between one worker and another, etc.
2. Unavoidable causes - Unavoidable causes may be personal or impersonal. These include:
(i) Personal betterment,
(ii) Retirement, death or disablement,
(iii)Domestic responsibilities, i.e., to look after old parents,
(iv)Discharge due to factors like unsuitability, insubordination, and negligence,

Personal Growth
Work Environment
Company Image
Industry Growth
Learning Opportunities
Job Satisfaction
Culture
Fun Place to Work
Compensation
(v) Marriage in case of women workers, etc.
Every organization must see that leaving due to avoidable causes is prevented.
Effects of Labour Turnover
Some degree of labour turnover is inevitable as well as desirable in all organizations. However, high rate of turnover is a
warning to management that something is wrong with the health of the organization. It may mean poor human resource
practices, poor supervision, and poor company policies and so on. High labour turnover is a sign of low morale and
instability and is harmful to both employer and employees.
Cost to Employer: High labour turnover is costly to employers in the following ways:
i. Hiring costs involved in repeated recruitment, selection and placement of employees.
ii. Expenditure incurred on orientation and training of workers goes waste.
iii. Loss of production in the time interval between separation of old employees and replacement by new.
iv. Overtime costs have to be incurred to meet delivery schedule.
v. Smooth working of the organization and quality of work suffer.
vi. Accident rates of new employees are usually higher.
vii. The team spirit among employees is disturbed as newly recruited workers need some time to develop friendly
relations with the existing employees.
viii. Machinery and equipment remain unutilized during the recruitment and training of new workers.
ix. Scrap and waste rates increase due to inexperience of new workers.
x. Market reputation of the company suffers when orders are not executed in time due to high labour turnover.
xi. Human resources of the country are under-utilized.
Costs to Employees: High labour turnover is harmful to employees in the following ways:
i. Due to shifting a worker loses the benefits of previous service. Pay increment, leave, provident fund, pension, gratuity,
etc. are such benefits.
ii. An employee who changes his job quite often loses the opportunity to promotion on the basis of seniority.
iii. The special skills and experience developed in an organization may become meaningless in another organization.
iv. The work environment differs from one organization to another. The shifting worker may not be able to adjust to the
new organization.
v. The growth of trade union movement is affected.
Control of Labour Turnover/ Strategies to Lower Labour Turnover
The following steps can be taken to reduce labour turnover:
1. Proper planning of manpower requirements so as to avoid redundancy.
2. Improvement in recruitment policy and practices.
3. Use of proper tests and interviews in selection of employees.
4. Proper orientation and training of employees.
5. Better pay and good working conditions.
6. Promotion from within and other career opportunities.
7. Security of service.
8. Impartial transfer and promotion policies.
9. Introduction of incentive plans.
10. Employee welfare schemes.
11. Adequate machinery for satisfactory redresal of grievances.
12. Provision of retirement benefits.
13. Employee consultation, suggestion, schemes and workers participation in management.
14. Conflict resolution and team-building techniques to improve human relations and morale.
15. Proper job designs, and work scheduling to match skills with job requirements.
Q.21) What do you understand by absenteeism? Describe the nature of absenteeism in India industries.
Meaning of Absenteeism
Absenteeism means the failure of a worker to report for work when he is scheduled to work.
Absenteeism in India
Absenteeism is a universal problem in industry and is not peculiar (irregular) to Indian industries. But the rate of
absenteeism has been relatively higher in India. Research studies conducted by Shri Ram Centre for Industrial Relations,
Employers Federation of India and the National Productivity Council reveal the following peculiarities of absenteeism in
India:
a) The rate of absenteeism has been more than 10 per cent.
b) A small percentage of employees (15%) account for a large percentage (70%) of the total absenteeism.
c) There has been a seasonal bias in the causes making for absenteeism. For example, absenteeism due to sickness was
highest in July, September and lowest in April, June.
d) Absenteeism has been greater in night shifts than in day shifts.
e) Absenteeism is generally higher in the departments where supervisors are work-oriented and careless for employee
welfare.
f) The rate of absenteeism is likely to be higher in days before and after a holiday.
g) Women tend to be absent more often than men.
h) Employees below the age of 25 years and above the age of 55 years are absent more often than those in the age group
of 26 to 55 years.
i) Workers tend to be absent more frequently than supervisors and managers.
j) Absenteeism is generally higher in large organizations than in small organization.
Q.22) Describe the adverse effects of absenteeism. How can it be controlled?
Effects of Absenteeism
Excessive absenteeism is harmful to both employees and workers in the following ways:
1. Regular flow of work in the factory/office is disturbed.
2. Orders cannot be executed in time as production schedules are upset or delayed.
3. Overall production declines.
4. There is considerable increase in overtime bill.
5. Quality of work suffers because casual workers employed to maintain work schedules are not properly trained.
6. Work pressure on employees who are present increases.
7. Repair and maintenance cost increases due to frequent breakdown of machinery by inexperienced workers.
8. Incidence of industrial accidents increases.
9. Workers lose wages for unauthorized absence from duty.
10. Workers who are habitually absent may be removed from services causing a great hardship to them and their families.
Control over Absenteeism
Some important measures are as follows:
1. Proper Hiring: It is necessary that people with right skills and methods are selected.
2. Good Working Conditions: Proper sanitation, drinking water, canteen, first aid, rest pauses (room) and mechanization
can help to reduce absenteeism by making work environment pleasant.
3. Housing and Transport Facilities: Provision of housing accommodation, preferably near the factory and bus facility
will ensure regular attendance of workers.
4. Safety Programme: Adequate safety measures help to minimize industrial accidents and reduce fear of injury among
employees. As a result attendance becomes regular.
5. Incentive: Special bonus, cash prizes, fancy dinners, extra leaves, gift vouchers and preference in promotion to regular
employees encourage workers to be regular in their attendance.
6. Effective Supervision: Supervisors can considerably reduce absenteeism by earning confidence and commitment of
workers. They should show sincere interest in workers and treat them as human beings.
7. Disciplinary Action: Suitable action should be taken against chronic-absentees. Punitive action may be in the form of
publishing their names in company house magazine, fines, withholding pay increment, denial of promotion, suspension,
dismissal etc.
8. Regular Leave Provision: A provision should be made wherein every worker can avail of a few days leave during the
year. Holidays with pay enable a worker to attend to his private affairs.
9. Employee Counseling: Guidance and counseling help employees to eliminate bad habit like drinking and gambling.
Habitual absentees can be persuaded to become regular by impressing upon them the loss arising to them due to
absenteeism. Education and training can be used to develop a sense of responsibility and commitment.
10. Proper Records: Detailed and up-to-date records of absenteeism should be maintained. So that suitable corrective
actions can be taken whenever necessary.
Q.23) Write a note on the following:
a) Difference between Labour Turnover and Absenteeism
b) Causes of Absenteeism
a) Difference between Labour Turnover and Absenteeism

b) Causes of the Absenteeism
The rate of the absenteeism in Indian industries is very high and cannot be dismissed. A Statistical study of absenteeism of
Indian Labour observed that, the basic cause of absenteeism in India is that industrial worker is still part-time peasant.
Thus the workers go to find jobs at cities after the harvesting their crops. It means that when the transplanting season.
These workers consider to the modern industrialism is insecure. Thus, cause to high rate of the absenteeism in the
industrial sector.
According to the Labour Investigation Committee (1946), there were many reasons that caused the absenteeism of the
industrial workers. The Commission pointed out many factors which caused the absenteeism in Indian industries. These
factors are:
1. Sickness and low vitality: The committee pointed out that sickness is most important responsible for absenteeism in
almost of the in Industrial sector. Epidemics like cholera, small-pox and malaria always break out in severe from in most
industrial areas. The low vitality of the Indian workers makes them easy prey to such epidemics and bad housing and
unsanitary conditions of living aggravate the trouble. However, the Commission has been noticed that the rate of
absenteeism among the female workers is higher than their male counterparts.
2. Means of Transport: The Commission also stated that the transport facilities also play very important to contribute the
absenteeism of the worker in the industries. It has been pointed out that, the rate of absenteeism is higher in those
factories where transport facilities are not easily available as compared to those where such facilities are easily available
or provided by the factory itself.
3. Hours of work: The long hours of work also affect the workers efficiency and consequently their sickness rate and
absenteeism rate are increased.
4. Nightshift: It has also been pointed out that there is a greater percentage of absenteeism during the nightshifts than in
the dayshifts, owing to the greater discomforts of work during the night-time.
5. Rural exodus: The committee also pointed out that probably the most predominant cause of absenteeism is the
frequent urge of rural exodus. It has been noticed that the workers go back to their villages at the time of harvesting and
sowing the crops. It increases the rate of absenteeism in factories.
6. Accident: Industrial accident depends upon the nature of work to be performed by the worker and his ability for doing
that work. In case of hazardous nature of job, the accidents occur more frequently which lead to higher rate of
absenteeism.
7. Social and Religious Function: it has been noticed that workers become absent from their duty on occasions of social
and religious functions. Since the workers like to join their families on such occasions, they go back to their villages for
like to join short periods.
8. Drinking and Amusement: the Labour Investigation committee pointed out that drinking and amusements are also
responsible for absenteeism. Since drinking and amusements in the late hours of night make it difficult for the workers to
reach in time on their duties. They like to become absent rather than late since they know that badly workers will be
substituted for them, if they are late.
9.After Pay-Day: the Labour Investigation committee also noted the level of absenteeism is comparatively high
immediately after the pay-day because they get their wages, they feel like having a good time or return to their villages
to make purchases for the family and to meet them, so the absenteeism is high after they got paid.
10. Nature of work: the absenteeism rate is also affected by the nature of work. According to Prof. William pointed out
that absenteeism prevails because workers are not accustomed to the factory life and factory discipline. In other words,
absenteeism prevails because the nature of work in factories is different from that for which the worker is accustomed. So
when they come to work in the factory, they feel strange, this new situation make them uncomfortable, so lead to high rate
of absenteeism of the industrial workers.
11. Other Causes: The above factor which are caused the absenteeism in the Industrial which are pointed out briefly by
the Labour Commission. However, there can be tow other factors which caused the absenteeism in industrial sector. These
factors are: a) personal Factors and b) workplace factors.
A. Personal factor: The personal factor also divided into other sub-factors, these are:
i. Personal Attitude: there are different attitude of employees. The Employees with strong workplace ethics will respect
their work and appreciate the contribution they make to their companies. Such employees will not engage themselves in
taking unscheduled off. On the other hand, employees with very low or no work ethics are indiscipline and have lot of
integrity and behavioural issues. Since, they feel no obligation towards the company, absenteeism comes easily to them.
ii. Age: The younger employees are often restless. They want to spend time with their friends and have fun, rather than
being tied down with work responsibility. This lack of ownership often leads them to take unauthorized time off. With
age, people gain experience and maturity, which makes them focused and responsible. Their approach is rather
professional and they prefer to stick to their chairs to get the work done. If ever they are found absent, then it could be due
to sickness.
iii .Seniority: Employees, who have been with the company for a long time are well-adjusted with the working culture
and the job, therefore, they find no reason to be absent without permission. On the other hand, new hires are more prone
to taking ad hoc breaks to unwind themselves.
iv. Gender: Women generally do a balancing act by shuffling their time between home and work. Family, being their
foremost priority, they don't think twice before taking a step towards absenteeism.
B. Workplace Factors
i. Stress: The pressure at work sometimes takes a toll on the employees. This results in increased levels of stress. The
employees then resort to excuses that can help them stay away from work.
ii. Work Routine: Doing the same job over a period of time can get monotonous. The employees find the job functions
boring. They rather choose time off to do something interesting than come to work.
iii. Job Satisfaction: If employees do not find their job challenging, dissatisfaction creeps in. That leads to more
absenteeism in the workplace.
Q.24) Explain the styles of workers participation in Management.
Or
Describe the concept of workers participation in management. Explain the different schemes of workers
participation in Indian industry.
Or
What do you understand by workers participation in management? Explain its objectives and importance.
Meaning & Definition of WPM
The concept of workers participation in management crystallize (shape up) the concept of industrial democracy and
indicates an attempt on the part of the employer to build his employees into a team, which work towards the realization of
a common objectives.
According to the International Institute for Labour Studies, WPM is the participation resulting from practices which
increase the scope for employees share of influence in decision-making at different tiers of organizational hierarchy with
concomitant (attendant) assumption of responsibility.
According to Davis, It is a mental and emotional involvement of a person in a group situation which encourages him to
contribute to goals and share responsibility in them.
Objectives of WPM
The objectives of WPM may vary from country to country and from enterprise to enterprise. However, the various
objectives may be listed as follows:
i. To promote industrial peace
ii. To promote industrial democracy
iii. To give due recognition to the personality of the workers
iv. To safeguard the interest of workers
v. To regulate the self centered actions of the capitalist
vi. To give a social orientation to the business
vii. To ensure the best utilization of the human resources
viii. To improve employee morale
ix. To satisfy workers urge for self-expression
x. To improve industrial productivity
Importance of WPM
Workers participation in management provides the following benefits:
1. Mutual Understanding: Participation brings the two parties closer and makes them aware of each others problems.
As a result, a better understanding and mutual trust can be created between employer and workers.
2. Higher Productivity: Cooperation between management and labour helps to increase production and profits of
industry.
3. Industrial Harmony: Workers participation in management helps to reduce industrial disputes and to improve
workers loyalty. Continuous dialogue between management and workers improves peace in industry.
4. Industrial Democracy: Need for outside intervention between employer and employees is eliminated and workers are
free from exploitation.
5. Less Resistance to Change: Workers often resist change due to fear and ignorance. When workers participate in the
decision-making, they come to understand that change is ultimately in their own interest.
6. Creativity and Innovation: Participation encourages workers to think and take initiative. Their talent and ability can
be capitalized.
Workers Participation in Management in India
Several schemes of participation have been introduced to give effect to the policy statements given above. A brief review
of these schemes is given below:
1. Work Committee: The Industrial Disputes act, 1947, provides for the setting up of bipartite work committees as a
scheme of WPM, which consists of representatives of employers and employees. The act provides for these bodies in
every undertaking employing 100 or more workmen. The aim of setting up of these bodies is to promote measures for
maintaining harmonious relations in the work place and to sort out differences of opinion in respect of matters of common
interest to employers and employees.
2. Joint Management Councils (1958): The scheme of JMCs is based on a draft prepared by the 15
th
session of the
Indian Labour Conference (ILC) as subsequently modified by the two tripartite national seminars on the subject held in
1958 and 60. The councils should be constituted in units, where 500 or more workers are working. This consists of equal
representatives of management and workers.
3. Workers Participation in Board of Directors: Another experiment in participative management began in 1970 with
the launching of a scheme for the appointment of workers representatives on the Board of Directors (BODS) of
nationalized Banks. He was to be appointed by the Central Government from out of a panel of three employees to be
furnished by the representative union of that bank.
4. Workers Participation Scheme (1975): It began in 1975, when the Central Government adopted through a resolution
a new scheme of WPM. The scheme covered all manufacturing and mining industries employing 500 persons. The
scheme provided for the setting up of shop councils at the shop and floor level and joint councils at the plant level.
5. New Scheme on Workers Participation (1983): In December 1983, the Government of India introduced a new
comprehensive scheme of WPM.
6. Worker Shareholder: One more method of involvement of workers in industries is to make them shareholders in the
company. The workers are allowed to pay the purchase money in convenient installments and are ever granted loan for
this purpose.
Q.25) What is meant by Workers Participation in management? How this can be achieved? Give your answers
with reference to India.
Or
Explain the various forms and practices by which labour can be associated in the management of enterprises.
Or
What is Joint consultation? Explain the problems in joint consultation and the principles for making it effective.
Meaning & Definition of WPM
The concept of workers participation in management crystallize (shape up) the concept of industrial democracy and
indicates an attempt on the part of the employer to build his employees into a team, which work towards the realization of
a common objectives.
According to the International Institute for Labour Studies, WPM is the participation resulting from practices which
increase the scope for employees share of influence in decision-making at different tiers of organizational hierarchy with
concomitant (attendant) assumption of responsibility.
According to Davis, It is a mental and emotional involvement of a person in a group situation which encourages him to
contribute to goals and share responsibility in them.
Forms of Workers Participation in Management
Several methods have been suggested and tried for ensuring workers participation in management. Some important forms
of participation are as follows:
1. Suggestion Schemes: Under this system, workers are invited and encouraged to offer suggestions for improving the
working of the enterprise. A suggestion box is installed. Any worker can write his suggestions and put it into the box.
Periodically all the suggestions are scrutinized by the Suggestions Committee. Good suggestions are accepted for
implementation and suitable rewards are given to the concerned workers. Suggestion schemes encourage workers interest
in the functioning of the enterprise.
2. Works Committees: Under the Industrial Disputes act, 1947 every establishment employing 100 or more workers is
required to constitute a works committee. Such a committee consists of equal number of representatives of employer and
workers. The main purpose of works committees is to provide measures for securing and preserving amity (peace) and
good relations between the employer and employees.
3. Joint Management Councils: Under this system, joint management councils are constituted. These councils consist of
equal number of representatives of employers and workers. The councils discuss various matters concerning working of
industry. The decisions of these councils are advisory in nature though employers often implement the unanimous
(Common) decisions of these councils. Working conditions, accident prevention, indiscipline, absenteeism, training and
such other matters are generally the matters brought before joint management councils. While works committees are
formed at shop floor level, joint management councils are instituted at plant level.
4. Worker Directors: Under this method, one or two representatives of workers are nominated or elected on the Board of
Directors. This is a full-fledged and highest form of workers participation in management. In India, D.C.M. and a few
other companies provide representation to workers on their Board of Directors.
5. Co-partnership: In this method, workers are made shareholders in the company in which they are employed. As
partners, they take part in the management of the enterprise. They also share the companys profits in the form of
dividend.
Joint Consultation
Joint consultation is the process whereby employer consults the workers either directly or through their representatives
and seeks their opinion on various issues while retaining to him the right of taking final decisions. It is carried on through
joint consultative committees consisting of the representative of both employer and workers. Joint consultation is a
popular form of labour participation in management. It is a stage prior to joint decision-making.
Joint consultation includes matters not covered in collective bargaining. Workers training, productivity and
quality improvement schemes, grievances, disciplinary problems, safety measures and incentive schemes can be covered
under joint consultation.
Joint consultation offers the following advantages:
i. It promotes mutual trust and community of interest thereby bringing peace in industry.
ii. It is a step towards industrial democracy.
iii. It helps to improve the job satisfaction and morale of workers.
iv. It provides creative ideas and develops initiative among workers.
v. It helps to reduce employees resistance to new machines and methods.
The following problems and difficulties arise in joint consultation:
i. In the absence of a single recognized union, it becomes difficult to select the true representative of workers.
ii. The representatives of workers are narrow minded and politically oriented. They fail to consider the long-term interests
of the organization and workers.
iii. One influential and vocal member of a joint consultative committee may overshadow the views of the majority.
iv. Representatives of workers are not well-informed and well-educated. Therefore, they fail to make an effective
contribution.
The following guidelines or principles can be used to make joint consultation successful:
i. The objectives and scope of joint consultative committees should be well-defined and explained to all.
ii. Employers should be sincere in consulting the representatives of workers. Joint consultative committees should not be
made a mere show piece.
iii. Workers representatives should be provided information and education in the functioning of industry.
iv. Joint consultative committees should not become mere grievance committees. They must be utilized to solve the joint
problems of management and labour.
v. An atmosphere of mutual trust and cooperation between employer and employees should be created.
Q.26) Workers participation in management has failed in India. Do you agree? Give reasons. Also suggest
measures to make workers participation successful in India.
Reasons for Failure of Workers Participation in India
The scheme of workers participation in management has failed in India mainly due to the following reasons:
1. Employers have by and large resisted workers participation in decision-making. They feel that workers are not
competent enough to take decisions. There is no clear evidence to convince managers that participative management will
really lead to higher productivity and profitability.
2. Lower level needs of workers are not fully satisfied. Therefore, majority of Indian workers are not motivated enough to
assume decision-making responsibility either directly or through their representatives.
3. Workers representatives who participate in management have to perform the dual role of workers spokesmen and co-
managers. Very few representatives are competent enough to assume the two incompatible roles.
4. Generally, trade unions leaders who represent workers are also active members of political parties. While participating
in management they give priority to political interests rather than the interests of workers.
5. Schemes of workers participation have been initiated and sponsored by the Government. There has been lack of
initiative on the part of both employers and trade unions.
6. The focus has been on participation at higher levels. As a result rank and file of workers are not involved in decision-
making on matters directly affecting them.
7. In India, labour laws regulate virtually all terms and conditions of employment at the work place. Workers do not feel
the urge to participate.
Measures for Making Workers Participation in management Successful
The following steps may be taken to ensure success of workers participation in management:
1. Employers should adopt a progressive outlook. They should consider industry a joint endeavor in which workers have
an equal say. Employer should be made conscious of their obligations to workers and the benefits of participative
management. They should provide job security to workers.
2. Strong, enlightened and truly representative trade unions should be developed. Only one union should be recognized in
each industrial unit to represent the workers.
3. Employers and workers should agree on the objectives of industry. They should recognize and respect the rights and
obligations of each other.
4. Workers and their representatives should be provided education and training in the philosophy and process of
participative management. Workers should be made aware of the benefits of participation.
5. Mere legislation cannot make participation successful. A true spirit of mutual cooperation and commitment to
participation must be developed on the part of both management and labour. An atmosphere of trust should be created on
both sides.
6. Participation should be a continuous process. Adequate time must be allowed to let it take roots. It has to be a slow and
steady process. To begin with participation should start at the operating level of management.
Q.27) State the impact of technological change & issues on industrial relations.
Industrial Relations and Technology
Technological change affects the Industrial Relation. IR impact with information and communication technologies, their
traditional framework is deeply changing. In fact:-
a) Horizontal and pervading all sector, more & more reciprocally linked.
b) Dynamic, rapidly innovating.
c) Labour and capital saving and principally flexible (Suitable for many purposes)
Such changes themselves reflect at industrial or organization levels as well as at the single job level. At the organization
level professional requirements, the work place environment, health and safety in the workplace, work satisfaction,
working hours, which can be modified considerably for technological change. These changes can, in fact be even more
striking in newly founded industries that incorporate the latest technological developments and working organization
models which are quite different from those already operating in the same sector, division classical studies on
technological innovation have focused on lack of direction in technological planning as a whole and disregard for the
impact of any mutations, the impact on labour is more the result of a series of decisions made by those directly
involvements introducing new technologies, including those who are responsible for the introduction of changes, for
management norms as well as those who have to more with a new technologies that the workers and trade unions.
1. Forcing limits of traditional trade unions strategy: Trade unions in industrialized countries discover their own methods
inadequate to represent different positions and professional novelties from the labour market. While management
strategies and practices often try to change some of the rule, or the whole industrial relations system, Trade unions point
to concentrate their efforts on a new confederate organisational system. Trade Union try to define new strategies facing
the problem of companies re-organisation but in a broader sense. It is also build new-styled agreement in socio-economic
framework.
2. Tele work and new bargaining demand: Technological innovations linked to network and multimedia work
development clearly emphasis meanings and forms of distance working. During the recent past, at organisational level,
Tele work has enlightened a need of a flexible and centralized management at the workforce, asking for a precise
individualization of formal relationship between parties, usually determined by national labour law.
Types of Technological Changes
i. Scientific management
ii. Change in location of plants
iii. Shift in product demand
iv. Change in machinery
v. Automation
Rationalization & Automation
Rationalization implies a basic change in the structure and control of industrial activities. Its techniques can be
applied to methods, material and men.
In Automation, technology itself controls the operations. The machine provides data from its operations and feeds
it back to its own controls which govern the production process.
Impact of Technological Changes
i. Employment issues: Business alliances, E-recruitment, Jobs become Intellectual
ii. Management strategy: Corporate restructuring, planning for change well in advance, Participation of employees
iii. Trade Union response: Fear of losing jobs, Fear of losing comfort in an organization
Q.28)
Q.29)
Q.30) Discuss the international dimensions of Industrial Relations.
International dimensions:
Long Term: Holding an asset for an extended period of time. Depending on the type of security.
Near Term: Is used to describe events that may occur soon, in finance, the term is used to explain the time frame during
an event or change is expected to occur. It can mean different time frames based on the industry, security being traded or
business.
Near Term Forecast
Increased instability in labour management
Another oil price hike
Double digit inflation
High interest rate
Unions were expected to put pressure on wage to preserve the purchasing power of members.
Business operations were foreseen to slacken and cause jobs to be endangered.
Investment flows from local and foreign sources were anticipated to weaken.
Long Term Forecast
Philippines will not again succumb to an authoritarian form of government
Union strategy in the near term will hinge on larger participation in congress and at all levels of decision making
to safeguard and advance workers interest.
Augmentation of incomes.
Demand for higher wages
Attention and emphasis may shift to non-inflationary employee services and benefits, livelihood, projects,
cooperatives, and the like.
Outlook for the Long Term
Political changes and industrial relations globally.
The emergence of new democracies and market- oriented economies.
Reduction of the amount of economic aid it received.
The instigation of the European market may open larger opportunities for Philippine exports and imports and
improve employment and incomes in the country.
Transfer of the WFTU to the ICFTU
Recession in the US is expected to affect Philippine exports.
An enormous imbalance and an international debt of staggering proportions.
Philippine may not expect to receive in the future the same volume of economic and military aid it received in the
past.
Q.31)