Professional Documents
Culture Documents
Within the last three decades in the realm of human resource management, the
technique of the workers participation in management has been regarded as a powerful
behavioral tool for managing industrial relations system. This widely debated concept
has evolved from the purely ideological and imaginative plank to an organizational
reality. But the form and connotation of the term varies with the social economic goals
of a particular country.
For example, earlier in those countries where all or most of the means of
production were under public ownership, the term is used in quite a different sense as
against those countries where the means of production are in private hands. Again, in a
centrally planned economy, the nature and form of industrial democracy is not the
same as in a market economy. For management, it is joint consultation prior to decision
making. The management
improving the overall performance of an enterprise. For them, it means that workers
are given an opportunity to take part in those decisions which affect their wages, their
working conditions, their very jobs, and this participation paves the way to harmonious
industrial relations which are conductive to increasing productivity and efficiency. For
labourers, it is just like co decisions or co-determination. The trade unions view the
concept as the harbinger of a new order of social relationship and a new set of power
equations within organizations. This does not mean that they are concerned with
improving organizational Performance but in terms of relative importance and priorities,
they hold the view that the functioning of economic activity is, by its very nature, social.
The objective is to gain control over the decision making process within as enterprise.
The concept of workers participations in management crystalises the concept of
industrial democracy, and indicates an attempt on the part of an employer to build his
employees in to a team which works towards the realization of a common objective.
Democracy in management does not mean that supervisor need over take a
ballot. It does mean that he must consult his staff frequently. It only means that he must
given them a chance to express themselves, to think with him in arriving at a decision
rather than just to receive decisions, to be free to apply their own intelligence rather than
being told every detailed step in how they must perform them.
OGLENNSTAHL
workers participation in
management.
To critically review the various forms of workers participation in HSL.
To study the reactions of employees in Hindustan Shipyard Limited towards
workers participative scheme.
To suggest measures to make this scheme more effective and useful.
Philosophy:
The Philosophy underlying workers participation stresses:
(i) democratic participation in decision making .
(ii) maximum employer employee collaboration.
(iii) realization of a greater measure of social justice.
(iv) grater industrial efficiency and
(v) higher level of organizational health and effectiveness.
1.Constitutional requirement :Article 43(A) of the Indian constitution envisages the workers participation in
management may be secured by any means. So the PSEs are required to fulfill these
provisions by the speedier implementation of the scheme for effective workers
participation in management.
2.Psychological Requirement :The workers participation in public enterprises is also necessary to boost
psychological and emotion feelings of the workers for attaining due status in the
decision making process of the enterprise. Professor Om Prakash rightly pointed out
that where public corporations have emerged as a result of nationalization
programmes,the working class expect their status to be raised fundamentally the slogan
mines for the miners still creates considerable enthusiasm.
4. Improvement of mutual co-operation :Workers participation in management is quite necessary to improve mutual
understanding and co-operation between the management and workers. Managerial
effectiveness and willing co-operation of workers in public enterprises are the two preconditions for unimpaired organizational performance and production. Workers have
very powerful unions, and there are conflicts in attitude and approach, between
management and unions. Given a sense of identification and good mutual understanding
on the part of both, hindrances can be over come by allowing reasonable concessions to
workers. This can be achieved more easily through workers participation in
management.
5.Removal of Communication Gap:To bridge the gap between managers and workers in their feelings, workers
participation in management may be used as a successful tool. Once workers are given
an opportunity to participate in the decision making process, their doubts and
misunderstandings are removed, they are committed to the objectives of the enterprises,
becoming responsive to its need as they find greater satisfaction out of investment in
organizing the working methods, setting the production targets and controlling their
own work.
6. Improving Human Relations :Workers participation in management may be looked up on as a way of
humanization industrial work by creating opportunities for them to gain social
The scope, extent and the successful working of the participate management
depends to a great extent on the objectives and the three important factors of the system
of industrial relations, viz.,the employee, the employer and the government. The
objectives as viewed by these three parties contradict with each other in India. The
workers expect that workers participation in management schemes will lead to the
achievement security of employment, better wages, bonus etc. The employers interest is
in the maximization of profit through increased production and minimization of
expenditure. The government expects the scheme to bring about closer association
between labour and management and industrial peace. Viramani viewed that it is this
variance in the objective of participation as perceived by the three sectors, that is
responsible for the unsuccessful functioning of schemes of participative management.
The main objectives of workers participation in management include :
(i) To promote increased productivity for the advantage of the organization, workers
and society at large ;
(ii) To provide a better understanding to employees about their role and place in the
process of attainment of organizational goals ;
(iii)
FORMS OF PARTICIPATION :
The form or the way in which workers can do participate in management varies
a great deal. To some extend, this variation is related to the differences in management,
the issue or areas on which participation is sought, and the pattern of labour
management relations. It may also vary from organization to organization, depending up
on the level of power or authority enjoyed by managers at different levels in different
types of organization.
The specific way in which different forms of participation may take place also
varies from situation to situation. There may be formal organizational structures, such as
the works committee, plant councils, shop councils, production committee, safety
committee, joint management council, canteen committee, P.F.Management committee,
etc. the participation may also take place through informal mechanisms and forums. A
supervisor or a foreman may consult a worker before taking a particular decision in
which the later is interested, such as granting or rejecting an application for leave,
allotment of work on overtime, transfer from one section to another.
If workers participate in management either through formal mechanisms or
through informal procedures, if should be considered as an instance of participative
management. Whatever from it may take, it is necessary, for the effective functioning, to
promote the interests of both the parties management and labour. The managements
primary interest lies in improving productivity, reducing cost and thus improving
profitability. The workers interest lies in improving their earnings. When earnings
improve through sharing gains in productivity, apparently a harmony of interests is
promoted. If participation is to be effective as a process or device, it should be
integrated with a scheme of improving productivity and gain sharing.
It may be useful to note that the schemes in West Germany (outside of coal
mining and iron and steel), France, the UK, Israel and Poland conform to the joint
consultation model of participation in which the management takes the final decision
but allows the workers representatives to express their views. On the other hand, the codetermination scheme in coal mining and steel industry in West Germany and the joint
management plan in Israel approximate to the joint decision making model in which
workers and management representatives sit together and take decision jointly, through
the workers representatives may be in minority. Yugoslavia provides the only example of
the workers control model. These models often tend to merge in to each other to some
extent. Stray instances of every model can be found in all the countries.
In India, participation in management fall under the co-operative or joint
management model, entailing a tempering of managerial power, but not basically
altering the social system of production relations.
G.L.Nanda, after studying the scheme of workers participation in
management in some of the European Countries concluded. First, through their was a
variety of forms in which consultation between the management and workers was
maintained; the in-built character of consultation is the single important factor in their
success. Secondly, their was no attempt to by pass trade unions through the
establishment of joining consultation machinery.
LEVELS OF PARTICIPATION :
The participation is possible at all levels of management. It depends up on the
nature of functions, the strength of the workers, the attitudes of trade unions and that of
management. The areas and degrees may differ very considerably at different levels of
Problem sharing :
The problem sharing stage is one at which the employer recognizes that workers
can make a contribution in such areas as material costs, and the quality of work, and the
management presents the facts and labour is requested to give its opinion or to make
proposals for improving the situation.
Idea sharing stage :
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Administrative Participation :
Administrative participation involves a greater degree of sharing of
authority and responsibility of the management functions. Here members are given
a little more autonomy in the exercise of administrative and supervisory powers
in respect of welfare measures and safety works, the operation of vocational
training and apprenticeship schemes , the preperation of schedules of working
hours and breaks and holidays , payment of reward for valuable suggestions
received and any other matter that may be agreed by the members.
Decision Participation :
Decision Participation is the highest form of articipation , where sharing in
decision-making power is complete and delegation of authority and responsibility
of managerial function to such a body is maximum. In matters like economic ,
financial , administrative policies the decisions are mutually taken. In short ,
workers participation in management can deal with and exercise supervisory ,
advisory and administrative functions on matters concerning safety , welfare etc;
though the ultimate responsibility is vested in the management. In short, the
creation of new rights as between employers and workers should be outside the
jurisdiction of the participation schemes.
Workers Participation In India :
The participation of workers in management is nothing new for India . In
1920,
Mahatma Gandhi
had
suggested
this on
the
ground
that
workers
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each other, they should be great family, living in unity and harmony. The
influence of mahatma Gandhi bore fruit ; and for the first time , the joint
consultation model was advocated in cotton textile industry. The year 1920 may
therefore be regarded as a landmark in the history of joint consultation in India.
The government has acknowledged the importance of workers participation
in management which has been indicated in various official pronouncements from
time to time. The first major step in the direction was the enactment of the
Industrial disputes act in 1947. Further in 1957 the scheme for joint management
council was formulated following the suggestions to this effect in second five
year plan. Prior to it , the industrial policy resolution(1948) had suggested that
labour should be in all matters concerning Industrail production . The first five
year plan had also called for consultation at all levels and reiterated the
governments faith in works committees . It said : Works committees for the
settlement of differences on the spot between the workers and the management
are the key to the system of industrial relations as conceived in this plan.
The second five year plan also emphasized that increased association of
labour with management would help successful implementation of various plans
by promoting
increased
productivity, by
giving
the
employees
better
understanding of their roles in the working of the industry and in the process of
production and by satisfying the workers urge for self-expression. The plan
characterised the creation of industrial democracy as a pre-requisite for the
establishment of a socialistic society.
The government of indias industrial policy resolution of april 1956 also
laid emphasized the need for the workers participation in management. In
socialist democracy, labour is partner in the common task of the development and
should participate in it with enthusiasm. There should be a joint consultation , and
workers and technicians should wherever possible be associated progressively in
the management. The enterprises in the public sector have to set an example in
this respect .
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(i) To begin with, Participation shall be limited to companies which employee 1,000 or
more workers ( excluding badli workers).
(ii) The definition of workmen is given in the Industrial dispute Act, 1947, would be
appropriate for the scheme.
(iii)
The Participation at the Board level should be introduced if at least 51
percent of the workers vote in a secret ballot in favour of such participation. In that
event, the company will be legally bound to fall in line twith their wishes. However, any
company can voluntarily introduce this participation scheme.
(iv)Before fixing the proportion of worker Directors on the Board, a more detailed
consideration should be given to the issue by the Central Government.
(v) The worker Director will be elected by all the workers at the companys premises by
secret ballot with cumulative voting rights.
(vi)The worker Director must be from amongst the workers employed by the company
and not an outsider.
(vii) A Pre requisite of this scheme of Participation is a programme of training
designed to be in line with the business of company. It will be the responsibility of the
Government to organize this training programme. An awareness of industrial relations
and business techniques will certainly make the workers more aware of the actual
problems faced by the companies in modern society. The training of the employees
must, therefore be immediately taken in hand.
(viii) The presence of worker Director on the Board would bot lead to any breach in the
confidentiality of the information.
(ix)The committee did not favour a two tier representation, i.e. a supervisory Board
and the smaller Management board.
(b) Regarding workers Participation in share capital :
In regard to workers Participation in share capital the committee failed to evolve
any formula acceptable both to workers and employers. It did not, therefore,
recommend any mandatory Participation in equality by the workers. The
recommendation that emerged was:
There was, however, quite a majority in favour of the suggestion that in all
future issues of shares by companies, a portion of new shares, say about 10% to 15%
should be reserved exclusively for workers, called the workers shares. These shares in
the first instance, must be offered to the employees of the company, and failing that only
should they be offered to the existing shareholders or the public. For that purpose,
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section 81 of the Act should be suitably amended permitting the companies to give to
the employees a loan upto 12 months salary or wages not exceeding Rs.1200 for the
purchase of the shares of the company. This scheme, however, has not found favour
with Indian industries.
VERMA COMMITTEE ON WORKERS PARTICIPATION IN INDUSTRY:
The Janata Government set up a committee in September 1977 under the
chairmanship of Ravindra Varma, the Union Minister of Labour. The terms of reference
of the committee were:
(i) To study the existing statutory and non statutory schemes.
(ii) To recommend on the outlines of a comprehensive scheme of workers Participation
especially keeping in view the interests of the national economy, efficient management
and workers, and
(iii)
To recommend the manner in which the concept of trusteeship in industryand
the participation of workers in equity can be given a practical shape in a scheme of
workers. Participation.
The main recommendations of the Committee, which submitted its report in
1979, are:
(i) A three tier system of participation, viz., at the shop floor, plant and corporate or
board levels, should be adopted.
(ii) Legislation on workers participation covering all undertakings employing 500 or
more workers, private or corporate sector should be introduced.
(iii)
There should be provision for extending the scheme to units employing at
least 100 workers.
(iv)The representative for the participative forums should be elcted by secret ballot with
a view to avoiding any possible friction between the collective bargainin agent and the
representative. The committee suggested that there should be parity between the
representative of employers and workers on the participation forums at shop and plant
levels, but it could not agree on the number of workers representatives at the corporate
level.
(v) The issue of equity participation was recommended as optional. Not less than 10%
of all new shares to be issued in future by a company should be reserved exclusively the
workers shares of the workers of that company.
The sixth Plan Observed :
15
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(v) The employees and employers shall have equal representation on all the participative
forums, and
(vi)The functions of the participative forum would be as laid down in the scheme and
can be modified with the consent of both the parties.
But a host of constraints such as multiplicity of union, inter union rivalry, lack
of proper knowledge on the part of workers about the scheme have acted as a
stumbling block in successful working of the scheme.
Forms of workers participation in India :
In the country the workers participation in management scheme is vogue in three
forms, viz.,
(i) The works committees (set up under the Industrial Dispute Act, 1947)
(ii) The joint management councils (setup as a result of the labour Management
Cooperation seminar, 1958)
(iii)
Since July 1975, a two tier Participation model, namely the shop Council and
the joint council at the enterprise level, were introduced. On 7 th January 1977, a new
scheme of workers participation in management in commercial and service
organizations in public sector undertakings was launched with the setting up of unit
councils. On 30th December 1983, a comprehensive scheme for workers participation in
public undertakings was introduced. It was decided that workers would be allowed to
participate at the shop level the plant level and the board level. As the scheme of shop
council and workers representation on the board of directors were already functioning,
greater emphasis was placed on the setting up of unit councils.
At present the following Participation forms are prevalent in India:
(A)
Works Committees,
(B)
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(C)
Joint Councils,
(D)
Unit Councils,
(E)
Plant Councils,
(F)
Shop Councils,
(G)
(H)
The above Participative forms are dealt with in the following paragraphs.
Works Committees :
The Industrial Disputes Act, 1949 provides for the setting up of works
committees as a scheme of workers Participation in management which consist 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. The Bombay Industrial Relations Act, 1946 also provides for these bodies,
but under the provisions of this Act they can be set up only in units which have a
recognized union and they are called joint committees. The workers directly elect their
representatives where there is no union.
Functions :
These works Committees /Joint committees are consultative bodies. Their
functions include discussion of conditions of work like lighting, ventilation,
temperature, sanitation etc., amenities like water supply for drinking purposes provision
of canteens, medical services, safe working conditions, administration of welfare funds,
educational and recreational activities and encouragement of thrift and savings. It shall
be the duty of the works committee to promote measures for searching and preserving
amity and good relations between the employers and workmen and to comment upon
matters of their common interest or concern and endeavor to re-council any material
difference of opinion in respect of such matters.
Structure :
The works committees have, as office bearers, a President, a Vice President, a
Secretary and a Joint Secretary. The president is a nominee of the employer and the Vice
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President is the workers representative. The tenure of these bodies is two years. The
total strength of these bodies should not exceed 20. The employees representatives have
to be chosen by the employees.
These committees functioned actively in some organizations like Tata Iron and
Steel Company, Indian Aluminum works at Belur, and Hindustan Lever. In all these, the
management have evolved joint committees independently of the statutory requirements.
Joint Management Councils (JMCs) :
The second Five Year Plan recommended the setting up of joint councils of
management consisting of representatives of workers and management. The
Government of India deputed a study group (1957) to study the schemes of workers
Participation in management in countries like UK, France, Belgium and Yugoslavia.
The report of the study group was considered by the Indian Labour Conference (ILC) in
its 15th session in 1957 and it made certain recommendations.
(i) That workers Participation in management schemes should be set up in selected
undertakings as a voluntary basis.
(ii) A sub committee consisting of representatives of employers, workers and
government should be set up for considering the details of workers Participation in
management schemes. This committee should select the undertaking where workers
participation on management would be introduced in the first stage on an experimental
basis.
Objectives :
The objectives of Joint Management Councils are as follows:
(i) To increase the association of employers and employee thereby promoting cordial
industrial relations.
(ii) To improve the operational efficiency of the workers,
(iii)
(iv)To educate workers so that they are well equipped to participate in these schemes,
and
(v) To satisfy the psychological needs of workers.A tripartite sub committee was set up
as per the recommendations of Indian Labour Conference which laid down certain
criteria for selection of enterprises where the JMCs could be introduced. They are:
(i) The unit must have 500 or more employees.
(ii) It should have a fair record of industrial relations,
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(iii)
(iv) The employer in a Private undertaking should be member of one of the leading
employers organization, and similarly the trade union be related to one of the central
federations.
(v) The company should have fair record of industrial relations.
Functions :
The following are the important functions of JMCs:
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The tripartite committee originally prepared a list of 50 enterprises and later the
target was raised to 150 to introduce JMCs. It was found by 1966 that 124 JMCs were
in existence. This number dropped to 80 in 1978 and a good number of these were not
working. Some of the organizations which were successful with experiments of workers
participation are Bharat Heavy Electricals Limited (BHEL), Tata Iron and Steel
Company (TISCO), Indian Aluminum Company and Aluminum Industries of Kundara.
TISCO agreed to establish a comprehensive scheme of joint consultation by an
agreement with its units. Under this scheme a three tier system of consultation was set
up.
Joint Councils:
At every division /region /zonal level, or as may be considered necessary in a
particular branch of an organization /service employing 100 or more people, there shall
be a joint council. The main features of the joint council shall be:
(i) Each organization /service shall decide the number of councils to be set up for
different types of services rendered by it in consultation with the recognized union or
workers as the case may be, in the manner best suited to the local conditions.
(ii) Only such persons who are actually engaged in the organization /service shall be
members of the joint council. Each organization /service may decide the number of
members in the manner suggested in item(s) but the membership should not be
unwieldy.
(iii)
The tenure of the council shall be two years. if, however, a member is
nominated in the mid term of council to fill a casual vacancy, the member nominated
shall continue in office for the remaining period of the council.
(iv) The chief executive of the organization /service or of its divisional / regional /zonal
branch, as the case may be, shall be the chairman of the joint council. There shall be a
vice chairman who will be chosen by the worker members of the council.
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(v) The joint council shall appoint one of its members as its secretary who will prepare
the agenda, record the minutes of the meetings and report on the implementation of the
decisions arrived at every meeting. The management shall provide the necessary
facilities with in the premises of the organization /service for the efficient discharge of
his functions by the secretary.
(vi)The joint council shall meet when even considered necessary, but at least once in a
quarter. Every meeting shall review the action taken on the decisions of earlier meetings
for an effective follow-up action.
(vii) Every decision of the joint council shall be on the basis of consensus and not by a
process of voting it shall be binding on the management and workers and shall be
implemented with in one month, unless otherwise started in the decision.
Functions of the joint councils:
The following shall be functions of the joint council:
(i) The settlement of matters which remain unresolved by unit level councils and
arranging joint meetings for resolving inter council problems.
(ii) Review of the working of the union level council for improvement in the customer
service and evolving for the best way of handling of goods traffic, accounts, etc.,
(iii)
Unit level matters which have a bearing on other branches or on the
enterprise as a whole.
(iv) Development of skills of workers and adequate facilities for trading.
(v) Improvement in the general conditions of work.
(vi) Preparation of schedules of working hours and holidays.
(vii) Proper recognition and appreciation of useful suggestions received from workers
through a system of rewards.
(viii) Discussion on any matter having a bearing on the improvement of performance of
the organization / service with a view to ensuring better customer service.
Unit Councils:
Encouraged by the success of the Joint Councils scheme in manufacturing and
mining units, a new scheme of workers participation in management in commercial and
service organizations in the public sector, having large scale public dealings, was
announced on 5th January 1977. The scheme envisaged the setting up of unit councils
in units employing at least 100 persons. The organizations include hotels, restaurants,
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hospitals, air, sea, railway and road transport services, ports and docks, ration shops,
schools, research institutions, provident fund and pension organizations, municipal and
milk distribution services, trust organizations, all financial institutions, banks, insurance
companies, posts and telegraph offices the food corporation, State electricity boards,
Central warehousing, State warehousing corporations, State Trading corporations,
mines and minerals Trading corporation, irrigation systems tourists organizations,
establishment of public amusement and training organizations of central and state
Government.
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(vi) Every decision of a unit council shall be implemented by the parties concerned with
in a month, unless otherwise stated in the decisions itself.
(vii)The management shall make suitable agreements for the recording and maintenance
if minutes and designate on of its representatives as a secretary for this purpose, who
shall also report on the action taken on the decisions at subsequent meetings of the
council.
(viii) Such decisions of a unit council have a bearing on another unit of the organization
/service as a whole shall be referred to the joint council for consideration and decision.
(ix) A unit council once formed shall function for a period of three years. Any member
nominated or elected to the council in the mid term to fill a casual vacancy shall
continue to be a member of the council for the unexpired period of the term of the
council,
(x)The council shall meet as frequently as is necessary but at least once a month.
Functions of unit council :
The main functions of the unit councils are:
(i) To create conditions for achieving optimum efficjiency, better customer service in
areas where there is direct and immediate contact between workers at the operational
level and the consumer, higher productivity and out put, including elimination of
wastage and idle time, and optimum utilization of manpower by joint involvement in
improving the work system.
(ii) To identify areas of chronically bad, inadequate or inferior service and to take
necessary corrective steps to eliminate the contributing factors and evolve improved
methods of operation.
(iii)
(iv)To eliminate pilferage and all forms of corruption and to institute a system of
rewards for this purpose.
(v) To suggest improvements in the physical conditions of work, such as lighting,
ventilation, dust, noise, cleanliness, internal layout and the setting up of customers
service points.
(vi) To ensure a proper flow of two way communication between management and
workers, particularly about matters relating to the services to be rendered, fixation of
targets of output and the progress made in achieving these targets.
(vii) To recommend and improve safety, health and welfare measures to ensure efficient
running of the unit.
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(viii) To discuss any other matters which have a bearing on the improvement of
performance in the unit for ensuring better customer service.
Plant Council :
The plant council is formed in pursuance of the recommendations of the second
meeting of the group on labour at New Delhi on 23th September 1985. The scheme is
applicable to all central public sector undertakings, except those which are given
specific exemption form the operation of the scheme by the Government. The main
features of the scheme are:
(i) There shall be one plant council for the whole unit.
(ii) Each plant council should consist of not less than six and not more than eighteen
members. There should be parity between the representatives of employees and
employers. One -third of the employees representatives should come from the
supervisory stuff level. If the number of women employees is 15% or more of the total
work force, at least one representative should be a woman employee.
(iii)
Only such persons as are actually engaged in the unit should be members of
the plant council.
(iv)Its tenure shall be for a period of three years.
(v) The chief executive of the unit shall be the chairman of the plant council. The vice
chairman shall be elected from among the employees.
(vi)The plant council shall point on of its members as secretary who will be provided
with adequate facilities for the effective discharge of his duties with in the premises of
the undertaking /establishment.
(vii) If a person quits the council for what so ever reason, the member who is nominated
to fill the mid-term casual vacancy shall serve on the council for the unexpired period of
the term of the council.
(viii) The council shall meet at least once in a quarter.
(ix) Every decision of the plant council shall be on the basis of consensus and not by
voting, and shall be binding on both the employees and the employer. The decisions so
arrived at shall be implemented within a month, unless otherwise stated in the decision
itself. All unsettled issues shall placed before the board of directors for their decision.
Functions of plant council :
The plant council shall normally deal with the following matters:
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26
Shop councils :
The main features of the shop council scheme are:
(i) In every industrial unit employing 500 or more workers, the employer shall
constitute a shop council for each department or shop or one council for more than one
department or shop, on the basis of the number of workers employed in different
departments or shops.
(ii)
(a) Each council shall consist of an equal number of representatives of
employers and workers.
(b) The employers representatives shall be nominated by the management and must
consist of persons from the unit concerned.
(c) All the representatives of workers shall be from amongst the workers actually
engaged in the department of the shop concerned.
(iii) The employer shall, in consultation with the recognized union or the various
registered trade unions or with workers, as the case may be determine in the manner
best suited to local conditions, the number of shop councils and departments, to be
attached to each council of the undertaking or establishment.
(iv) The number of members of each council may be determined by the employer in
consultation with the recognized union, registered unions or workers in the manner best
suited to the conditions obtaining in the unit. The total number of members may not
exceed 12.
(v) All the decisions of the shop council shall be on the basis of consensus and not by
voting, provided that either party may refer the unsettled matter to the joint council for
consideration.
(vi) Every decision of the shop council shall be implemented by the parties concerned
with in a period of one month unless otherwise stated in the decision itself, and a
compliance report shall be submitted to the council.
(vii) Such decisions of the shop council having a bearing on another shop or department
or the undertaking as a whole shall be referred to the joint council for consideration and
decision.
(viii)
A shop council, once formed, shall function for a period of three years.
Any member nominated or elected to the council in the mid term to fill a casual
vacancy shall continue to be a member of the council for the unexpired portion of the
term of the council.
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(ix) The council shall meet as frequently as is necessary but at least once a month.
(x) The chairman of the shop council shall be a nominee of the management the
worker members of the council shall elect a vice chairman from amongst themselves.
Functions of shop councils :
To achieve increased production, productivity and over all efficiency of the
shop department, the shop council should attend to the following matters:
(i) To assist management in achieving monthly yearly production targets.
(ii) To improve production, productivity and efficiency, including elimination of
wastage and optimum utilization of machine capacity and manpower.
(iii) To specially identify areas of low productivity and take the necessary corrective
steps at shop level to eliminate relevant contributory factors,
(iv)To study absenteeism in the shop/department and recommend steps to reduce it.
(v) To suggest safety measures.
(vi) To assist in maintaining general discipline in the shop /department.
(vii) Suggest improvements in physical conditions of working lighting, ventilation,
noise, dust etc., and reduction of fatigue.
(viii)
shop/
department.
(ix) To ensure proper flow of adequate two way communication between the
management and the workers, particularly on matters relating to production
schedules and progress I n achieving the targets that have been set.
(x) Suggest technological innovations in the shop.
(xi) To assist in the formulation and implementation of quality improvement
programme.
(xii)To determine and implement the work system design.
(xiii)
(xiv)
28
29
(ix) The reforms commission did not favour a two tier representation, i.e., a
supervisory board and the smaller Management Board.
Functions under the scheme
The employees representative /worker Director participates in all the functions of
the board. Besides this, they also review the working of shop and plant councils and
takes decisions on matters not settled by the council.
Workers participation in share capital
The Sachar committee had, in its report to the Government observed: Quite a
majority in favour of the suggestion that, in all their future issues of shares, the
companies should reserve a portion of their new shares, say about 10% to 15%,
exclusively for the workers, called the workers shares. These shares, in the first
instance, must be offered to the employees of the company, failing that they should be
offered to the existing shareholders or the public. For that purpose, section 81 of the Act
should be suitably amended. Section 77 of the Act should also be amended, permitting
companies to give to the employees a loan up to 12 months salary or wages, not
exceeding Rs. 12,000 for the purpose of the shares of the company. This scheme,
however, has not found favour with the industries in India.
Other participative forums
Safety Committee :
Chapter IV of the factories act, 1948 deals with safety section 20 to 40-B of the
said act deals with various provisions and safety precautions to be taken by both the
employer and employees. While working in the factory in which 1000 or more workers
are employed, the employer is required to appoint a safety officer. The duties,
Qualifications and conditions of service of such safety officer shall be prescribed by the
concerned Government of the state where the factory is situated.
For the purpose of reviewing the safety performances and ensuring
implementation of all safety measures in the factory, the employer should constitute
safety committee with the representatives of Management and employees.
Functions :
- To review the safety performance in the factory and formulate safety polices.
- To examine the reports of the investigation committee in respect of accidents which
occur and suggest measures for reduction of rate of accidents.
30
31
Under Rule 70 of the A.P. Factories Rules, the Manager of every factory shall
appoint a Canteen Committee which shall be constituted and consulted from time to
time for the following:
- the quality and quantity of food stuffs to be served in the canteen.
- the arrangement of the menus.
- times of meals in the Canteen.
- any other matter as may be directed by the Committee.
32
Other Committees:
The employer may also constitute the following committees (as per requirement)
in consultation with recognized trade union /association. The structure of the committee,
its functions and other matters may be decided in consultation with recognized unions.
Recreation club:
For the purpose of organising the recreational activities in the colony.
Sports Committee:
For promoting sports activities among employees and for organising games
/sports and tournaments.
Educational Committee
For supervising the efficient and effective functioning of the various education
institutions run bv the organization for the benefit of the children of the employees.
economic and political considerations. Let us discuss briefly the models of workers
participation in management in Japan, the J.K. Germany and Yugoslavia as follows:
1. JAPAN:
33
34
commercial director and a labour director. The labour director is nominee of the
workers.
5. Yugoslavia :
In Yugoslavia, the power in industrial enterprise vests in the workers council.
The workers council consists of 15 to 20 members elected on a two yearly basis. Apart
from these works councils, three quarters of the management board numbers are made
up of workers directly engaged in the production.
Thus, workers in Yugoslavia have a share in the income of the enterprise, and
they are also a part of total system.
35
ORGANISATION PROFILE
Ship Building Industry in INDIA - AN Overview :
In India Shipping and Shipbuilding industries have had on unbroken tradition
extending over 6000 years. Since the days of the Indus Valley Civilization to the advent
of the British rule, the Indian seafarers had been known for their spirit of adventure and
Indian ships for their excellence and elegance.
Under foreign domination, the shipping Industry suffered a serious set back.
Even during those dark days some Indian industrialists of Vision and will power
continued a relevant less war against vested interests to save the industries from
complete collapse, Indian shipbuilding industries is being resurrected on the
foundations laid by these pioneers. It is a gaining ground and recognition too.
The people of MOHANJADARAO and HARAPPA manifested amazing energy
in maritime enterprise. Slat pigget mentions that Harappan traders carried considerable
business with Sumerian cities, Archeological excavations carried out during the past
decade have bought to light a dozen Harappan parts dating back to 2450 B.C. to 1900
B.C.
The Vedic Period
Aryans of the Vedic period were equally proficient seafarers. Vedic literature
contains numerous passenger giving graphic description of naval expendition carried
out by Aryan Kings. References are also to be found in the status, puranas and the tow
epics of Ramayana and Mahabharat. Palik Prakrit and Tamil literature is replete with
references to shipping continued to gain strength. In south, the Andhras on the East
Coast and the Malabaris on the west coast have had great maritime traditions.
36
The First prime minister of India Pandit Jawaharlal Nehru launched the first
vessel S.S. JALA USHA on 14th March 1948. The Deputy prime minister Sardar
Vallabhai Patel Launched the second ship JALA prabha on 20th November 1948 .
In the same year, scindias found it difficult to run the yard without any financial
assistance from the government. They have approached the government for payment of
construction differential.
In 1949, the government sought advice of French ship building experts on the
development of ship building Industry in India. The team of experts stated that the most
suitable scheme for ship building in India would be to full develop shipyard at
Visakhapatnam.
37
With the termination of agreement with ACL, the shipyard then entered into
technical collaboration with the west firm of LUBECKER FLANDER WERKE to
build LUBRKENT type of vessels ranging from 9500 to 12500 DWT.
Mean while in 1964 arrangements was made with MITSUIBISHI of Japan for
supply of an advanced design and drawing for a new series of vessels.
In the same year, shipyard broke new grounds in turnings out a naval vessel
meant for Hyderabad surveys and equipped with electronic devices INS DHARSHAK
with diesel electric propulsion.
38
39
40
The authorized capital of the company stood at Rs.18 crores in 1945 75 and
issued and subscribed capital at Rs.1378 crores as on 31st March 1975.
Unique Services
The Hindustan shipyard has rendered a unique service to nation by preparing a
broad based of technological skills necessary for expansion of shipbuilding industry
starting from scratch in the forties, the shipyard has built a nucleus of technicians and
engineers by a phased program of intensive training in almost all the shipbuilding
trades.
Industrial Relations
Industrial relations have been cordial and during the last five years, not a single
Man day was lost on account of Industrial disputes. Thus, a climate of good will
exists now between the management and employees of the shipyard. This had facilitated
the introduction of useful innovations like the multi trade system, which seeks to
eliminate wasteful labour practices.
Welfare of the employees has always been the primarily concern of the shipyard.
The housing colony consisting of about 1739 houses extended over an area of 145
acres. Marketing centers, Schools, Play grounds, a recreation club a dispensary and
maternity cum family planning center and other amenities are available for the colony
residents. Continuous efforts are made to meet the growing needs of the employees.
Training
The shipyard has its own well organised training center where the systematic
training is imparted to employees at all levels, apprentices are also trained in various
trades and skills to meet the requirements of the yard as well as those of other medium
and heavy engineering industries.
National Safety Awards
The shipyard has always been taking steps to ensure safety of the workmen and
the success of the safety program has
Governments. For three years in succession 1970, 71 and 73. The shipyard has been
adjusted as winner of the National Safety Award for maintaining the lowest rate of
accidents, under the group comprising railroad equipment, shipbuilding and ship
repairing organization. The shipyard has also been awarded as STATE SAFETY
AWARD by the Government of AP for outstanding performance in industrial safety by
maintaining constantly a low accident rate during the years 1972 in heavy engineering
industries. The shipyard has demonstrated its versatility in building various types of
vessels. In under taking ship repairing assignments, it has earned appreciation of the
41
Indian and foreign ship owners alike. With this modesty record, the shipyard is poised
to do much better in the coming years.
The shipyard and its part has introduced a number of welfare measures, for the
benefit of the workers.
Subsidized Lunch
Subsidized lunch is provided to the employees. The shipyard has built a fully
equipped and spacious canteen cum dining hall for the workers, which can
accommodate about 1500 workers at a time this in addition to the old canteen building.
Another dining hall with a capacity of 650 people will be commissioned in December
1975.
Medical Reimbursement
The staff and workmen enjoy the facility of reimbursement of medical expensed.
Under the scheme, expensed incurred on medical treatment by the staff and workmen
and their families are paid back to them, subject to a reasonable ceiling. In addition, two
will equipped dispensaries one in the residential colony and the other in the yard,
provide free medical treatment to employees and their families.
Education
High school managed by the Gandhigram educational society with liberal grants
from the shipyard has been upgraded to a junior college. Besides here is an upper
primary school a junior basic school and a nursery school. Arrangement exists for
providing elementary education to most of the children of the employees.
Housing
The housing colony of the shipyard known as GANDIGRAM consists of 1600
quarters, existing over an area of 145 acres. The colony has marketing centers, schools,
playgrounds and a recreation club, a dispensary and maternity-cum-family planning
center and various other amenities for the benefit of the residents.
Safety Measures
On the safety front a number of measures have been taken. Workers are provided
with protective equipment such as helmets, boiler suits etc. periodical trainings is
imparted at supervisory and middle management level to include safety aspects for all
the apprentices and probationary officers.
Welfare Committee
As the tempo of welfare activities increased it was thought that this should better
be organized by the employees themselves.
42
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
Share capital
9681.22
10181.22
10681.22
11431.22
12181.22
-98829.26
-96967.93
-98366.24
-99158.25
-98162.03
-54254.74
-51503.51
-51891.97
-51295.14
-48540.62
43
6481.07
6089.13
5731.09
5305.56
4871.68
27080.04
20146.85
24156.63
22251.86
21577.20
30592.05
35478.47
38062.41
33375.85
30413.78
0.00
0.00
0.00
0.00
0.00
470.79
98.35
144.57
2557.45
3000.61
10276.30
3859.67
8675.13
2308.88
2314.66
Cost of production
22597.58
20250.28
19732.54
21681.46
16221.38
16967.54
20700.54
16659.83
15667.05
15100.36
938.52
511.83
0.00
0.00
0.00
-2967.02
1361.13
-1898.31
-1842.01
246.23
Cumulative loss as at
-108510.28
-107149.15
-109047.46
-110589.48
-110343.25
Work-in-progress
SNO
NAME OF THE
DATE OF
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
SHIP
Jala Usha
Jala Prabha
Kutubtri
Jala Prakash
Jala panki
Jala padma
Jala palak
Bharatmitra
Jagrani
Jala pratap
LAUNCH
14-031948
20-11-1948
18-12-1948
08-08-1949
06-12-1949
14-09-1950
27-12-1950
26-03-1951
15-12-1951
27-02-1952
SNO
26
27
28
29
30
31
32
33
34
35
44
NAME OF THE
SHIP
Indian industry
State of pubjab
Vishva shanthi
Vishva prem
Vishva maya
Vishva mangal
Jala kala
Darshak
State of MP
Rohini
DATE OF
LAUNCH
12-12-1959
16-04-1961
25-01-1961
20-12-1961
06-04-1962
17-08-1962
29-03-1963
02-11-1963
15-10-1963
-
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
Jala pushpa
Bharat ratna
Jala putra
Jala vihar
Jala vijaya
Vidyut
Jala vishnu
State of kutch
Adyar
Andamans
State of orissa
Jala vikram
Jala veera
Jagmitra
Dhruwak
09-07-1952
26-08-1952
09-11-1953
16-08-1954
26-03-1955
18-08-1955
02-11-1955
26-03-1956
31-12-1955
27-07-1956
16-02-1957
29-07-1957
22-11-1957
05-07-1958
16-07-1958
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Jala Kendra
State of WB
State of mysore
Vishva tej
Vishva tirth
Vishva seva
Vishva siddhi
Vishva bhakthi
Vishva sobha
Vishva sakthi
Vishva dharma
Vishva vikrama
Shanthi
Vishva dharshan
Valchand
16-04-1964
05-12-1964
01-07-1965
01-10-1966
28-12-1966
26-04-1967
15-11-1967
15-04-1967
24-04-1968
20-03-1969
08-10-1969
09-02-1970
14-12-1970
20-07-1970
14-07-1971
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
Vishva nayak
T. S.Rajendra
Jala laxmi
State of UP
Vishva nidhi
Vishva madhuri
J. Endurance
Jag doot
Jagat priya
Sagarika I
Jag dhir
Sagarika II
Jagadesh
Jag dharma
Indian explorer
Damodar ganga
3-11-1970
25-4-1971
22-4-1959
31-121959
6-4-1960
29-8-1973
26-1-1974
22-6-1974
3-10-1974
7-8-1975
--3-197530-111974
30-3-1976
24-7-1975
7-11-1975
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
Prabhu daya
Samudrika VII
Sagar bhushan
Lok prakash
Lok rajeswari
Lok prem
Ins savitri
Ins gharial
Ins sarayu
Lok pratap
Ins sharat
Ins sujatha
Ambica
Maharashtra
Swatantra
M.V.Goa
25-11-1984
18-8-1985
18-8-1985
24-3-1985
16-7-1984
29-5-1987
20-111990
02-051991
04-101991
28-061993
22-8-1990
03-111993
23-011995
06-011996
12-091997
67
68
69
70
71
72
RSV Haldia
State of Rajastan
Indian grace
Indian glory
Jala godavari
Jala govind
73
Jala gopal
74
Jala gowri
24-10-76
11-6-1960
29-4-1960
23-121976
4-8-1977
26-3-1979
3-11-1979
11-7-1979
105
106
107
108
109
110
M.V.Swaraj dweep
Mahathma
Sardar patel
M.V.Tamilnadu
M.V.Rangat
M.V.Baratang
111
M.V.Kabini
112
Ins gaj
1-12-1979
75
Tenneti
76
State of Haryana
77
Nand rati
78
Bombay duck II
79
Vishva karuna
6-5-1981
27-7-1980
30-101983
12-7-1972
2-11-1971
15-011998
9-12-1999
1-01-2000
2-05-2000
1-09-2000
1-10-2001
1-01-2002
3-08-2002
4-10-2002
113
M.T.TIRACOL- II
114
M.V.Choudari
31-3-2003
28-1-2005
115
M.V.Chapora- II
24-11-2003
116
M.V.Teal
24-02-2004
117
BARGE
16-2-2005
45
80
Vichva yash
81
Vishva mamta
82
83
84
Vishva bandhan
State of Gujarat
Samudrika IV
118
M.V STRAIT
119
ICELAND
M L NILAMBAR
05-05-2006
2-11-2006
120
121
122
DWT BULK
LAKSHADEEP
OIL RECOVERY
7-5-2008
26-6-2008
27-4-2009
123
& POLLUTION
BOLLARD
17-8-2009
17-031972
23-8-1972
6-3-1973
3-6-1981
24-11-1984
85
Samudrika V
86
87
88
Lok maheswari
Samudrika VI
State of orissa
10-3-1985
20-8-1983
29-1-1985
10-1-1982
PULLS TUG
46
Personnel Profile
Professionalism with multidisciplinary interface is the present day characteristic
feature of the management of the Hindustan Shipyard Supervisory cadres are
characterized by substantial , craft-orientated experience, knowledge of theory in
relevant areas and leadership qualities.
As far as the ship building
maintenance
function
to
more
challenging
and
more
integrated
developmental activity.
Today personnel is not only responsible for effective service and cordial
industrial relations but also for development , change , culture building and better
Human
Resource
the
expanding
activities
of
the
organization and consequent challenges , the personnel function has become more
complex . In order to give specific direction and to strive for excellence , the
objective of the personnel organization were made out and issued for the first
time in 1985.
47
generate
organization
maximum
by offering
individual / group
opportunities
for
development
with in
the
advancement
of employees
maintain
high
morale
and
harmonious
relations
with
in
the
conditions
of working.
To achieve the above objectives, The Hindustan Shipyard Limited has been
reorganized.
MAN-POWER PLANNING
The need for Human Resource Planning is no less important .
To survive and prosper , any organization needs well qualified , well motivated
employees available at right time . This involves a system for careful advanced
planning for its Human Resource and projection of present and future needs
both in short term and long term perspective organizations that cannot secure
the skills they require in terms of their present as well as future need will
face a barrier to growth and
effective service . Long term neglect of such planning will make the current
planning more difficult . Further , without an over all man power plan ,
destructive problems are bound to occur . It is therefore , survival should adopt
a suitable manpower planning system so that a planned man power flow at
different levels of requirement along with there further developments take
48
place smoothly . Man power planning is thus the process ( including forecasting
, developing and auditing ) by which an organization ensures that it has the
right number of people and the right kind of people at right places , at the
right time , doing things for which they are economically most useful.
MANPOWER
AS on 01-04-2012
OFFICERS
686
STAFF
912
WORKMEN
TOTAL
3205
________
4803
49
associations
and agencies,
assess
and
Plan
the
man power
requirements
and
budget
the
qualifications ,
organizational requirements.
To ensure that company attracts and retains the best of personnel available in its
Various areas of functioning.
To focus on the placement of employee in jobs which they are best fitted physically,
mentally and tempermentally where they have strong expectation of being well adjusted
to their work and to the working environment.
Selection Method :
The company may select candidates through one or all the following selection
methods
1)
2)
Group task
3)
Personnel interview
50
effective functioning
in
the
higher
grade. Employees
are
eligible
for
PERSONNEL DEPARTMENT
In Hindustan Shipyard Limited , since its inception in 1941 , the
personnel department has been playing an important role in providing necessary
role in providing necessary role on providing necessary supportive services to the
top management and also involving / framing and implementing sound personnel
policies covering the areas of recruitment , selection, promotion, development ,
compensation , motivation of employees services and benefits , labour relations etc.
51
Deputy Manager
Section officer
Staff member
STAFF CELL
This cell deals with all the matters of the employees in the staff and
categories
regarding
manpower
and
Manager
52
Personnel Officer
Senior Steno
Junior Typist
TLM CELL
1) Deals with the disciplinary actions of the workmen in the HSL.
2) Deals with the arrival and departures of employees
3) Notes the number of absents of each and every employee in HSL.
Structure
-
Manager (Personnel-Workmen)
Section officer
Time officer
Six Assistants.
WORKMEN CELL
Like executive and Staff cell a separate cell was constituted to deal with
all the matters relating to workmen such as manpower planning , recruitment ,
selection , placements , performance
appraisal , promotions
etc.;
and
also
53
Structure
-
Deputy Manager
Section officer
Contract section
Personnel section
Jr. Assistants.
CO-ORDINATION AND LEGAL CELL
It
was
previously known
as
ODR (organizational
development
and
research) cell.
Functions
(i) Corresponding with administrative ministry (ie) ministry of shipping and
and other organizations on various matters service conditions of
transport
employees, labour
laws etc., in the local courts industrial tribunal- cum- labour work, highcourts ,
supreme court and other statutory authorities.
(ii) Operations of VRS correspondence with ministry or DPE regarding the said
scheme.
(iii) Organising joint council meeting and administration of group savings linked
insurance scheme.
Structure
- HOD / Manager
- Section Officer
- Assistant
- Steno
- Attendant
WELFARE DEPARTMENT
54
This cell mainly deals with welfare facilities like medical , housing ,
cooperative education , recreation etc. The function of grievance redressing is
carried out by chief manager and one Section assistant.
Structure
- Chief Officer
- Section officer
- 4 Senior Assistants
- Junior Assistant
EMPLOYEES ASSOCIATIONS IN HSL
There exists an employees association for officers category of employees
and staff and workers union for staff and workmen category of employees.There
are 19 registered trade Unions operating in HSL as on 23-04-2004. Out of these
some of the unions take part in elections . These elections help the respective
unions to get recognition in concern , elections will be conducted in HSL for
every 2years and the method followed in elections is Secret Ballot System .
Elections take place only in the name of respective trade unions without any
influence of the individual leaders .Registered and elected trade union of the
concern will have the following functions for the term of election .
-
55
1.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
HS Recreation Club
16.
INTRODUCTION:
The Hindustan shipyard limited believes that active association of all employees
in various aspects of productive operations in true participative spirit is essential for the
creation of involvement and commitment which alone can motivate them to contribute
their best for sustained growth and prosperity of the organization .in pursuance of the
government policy and with corporate objective of to evolve a participative style of
management which will ensure increasing production and productive, good working
conditions and job satisfaction to all employees, payment and reward system
56
commensurate with their performance, career development and good will amongst all
employees and respect for the individuals and his human potential, the management has
arrived at sound agreements with union to contribute a healthy participative system for
the benefit of the employees and organization. Accordingly a two-tier structure has been
instituted to translate the above objectives in to the real practice.
They are:
(a) shop council at shop floor level ; and
(b) joint council at corporate level
The scheme aims at ensuring an effective two way communication and exchange
of information between management and the employees in order to enable the latter to
have better apperception of the problems and difficulties of the undertaking in its
functioning.
SHOP COUNCILS
The scheme provides for one shop council for each division/growth as
mentioned under, having regard to the type of objectives and number of employees
employed.
Unit covered
Councils
Steel complex
number of shop
one
composition
57
one
-do-
one
DR & SR
-do-
58
59
JOINT COUNCILS
Composition
The composition of joint council will be as follows :
a)
One steward to be co-opted by the union from among the shop council
stewards.
One resource worker to be co-opted by the union from among three resource
workmen of the shop council.
2.
60
3.
4.
Absenteeism.
5.
Safety.
6.
7.
Functions
The joint council shall deal with the following matters :
a) Optimum production, efficiency and fixation of productivity norms of man and
machine for the unit as a whole.
b) Function of the shop council which have bearing on another shop or the unit as a
whole.
c) Matters emanating from shop council which remain unsolved.
d) Matters concerning the units of the plant as a whole in respect of matters relating to
work planning and achieving production targets, tasks assigned to shop council, at the
unit levels but relevant to plant as whole will be taken up by the joint council.
e) The development of skills of workmen and adequate facilities for training.
f) Optimum rewards for valuable and creative suggestions received from workers.
g) Optimum use of raw materials and quality of finished products.
h) Framing of rules and lines from time to time for workers of the shop councils and
joint council and for establishing communications and reporting system.
General :
a) Decisions in joint council meetings will be taken on the basis of consensus and not
by voting.
b) Unsettled matters of any shop council may be referred to the joint council
consideration.
c) Decision of joint council, as far as possible, will be implemented with in one month
from the date of such decision and the council be reported at its next meeting.
61
Review
The structure and functions of the council may be reviewed from time to time for
effecting improvements as required.
GRIEVANCES REDRESSAL SCHEME
Objectives
1. Grievance procedure in an organization where human relationships are involved
forms an integral part of industrial relations system. A grievance procedure to be
effective should be simple, flexible, time-bound and capable of being understood by
majority of employees. It should also ensure a sense of satisfaction among the aggrieved
employees, participation of employees unions and reasonable exercise of authority by
the grievance machinery.
2. On the basis of experience gained during the last 2 years of working of the
grievance cell which was constituted vide I.O.CMD/ I O / 14 / 79 dated 1.10.1979 and
keeping the above objectives in view a review of the present system of handling
grievances is made and the following revised procedure is introduced w.e.f.01.12.81
Nature of grievances
A grievance is an individual complaint or feeling (either real or imaginary) of
dissatisfaction, arising out of management action or inaction. Grievance constitute a part
of human relationship in an organization and must be given immediate attention to keep
the employee at ease and to maintain high morale among them in order to achieve a
sense of involvement of the employee in the objectives of the organization and the best
possible efficiency in production and productivity.
Classification of grievances
Grievances are broadly classified into
a)
Grievances relating to conditions of services i.e., affecting the individuals status
such as seniority, promotion, super session, transfers, alleged victimization,
regularization of absence etc.
b)
Grievances relating to work conditions i.e., conditions and environments of
work, general welfare amenities, safety etc.
c)
Grievances arising out of discrepancies in payment of wage such as short
payment, O.T. allowance etc.
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Handling grievances
The entire yard is divided into the following four zones in order to facilitate
effective and prompt handling of the grievances of the employees.
a) Steel complex
b) Outfit complex
c) Dry dock complex
d) Staff departments
The following three tier-system of handling grievances is introduced.
FIRST LEVEL :
In each shop / department a senior engineer or an officer of equal status will be
designated as Departmental Grievances Officer who will entertain grievances either
oral or in writing at the first instance. He will examine / investigates into the grievance
and counsel the aggrieved employee and resolve the grievance at his level as far as
possible within 3 days from the date of receipt of the grievance. The welfare officer
attached to the zone will render supporting services to DGO in solving the grievance at
the shop level during his visit to the department in his zone.
The grievances which could not be solved at the level of OGO will be referred to
zonal level grievance committee for examination and redressal of the grievances within
15 days from the date of receipt of the same from the DGO.
SECOND LEVEL :
ZONAL LEVEL GRIEVANCE COMMITTEE (ZLGC)
This committee will consist of
Chief manager or his nominee (he will preside over the committee meetings)
Representative from staff association.
Representative from labour union.
Welfare officer (W.O). (the W.O will act as convener for the committee in his
zone).
The welfare officer will collect the unsettled grievances from the DGO and will
analyses and collect necessary data / records and prepare a brief summary of the cases
and present the same before the zonal level grievance committee. Unanimous decisions
63
taken by the Z L G C falling within the frame work of the companys policies and rules
will be implemented by the concerned department after taking approval of the
competent authority wherever necessary. Such decisions will be communicated by W.O
to be aggrieved employee and also to the concerned department for implementation.
The Z L G C will meet once in a fortnight in the first week and third week of
every month or earlier, if so needed.
THIRD LEVEL :
CORPORATE LEVEL GRIEVANCE COMMITTEE (CLGC)
This committee will consist of
General manager
General manager (finance)
One representative each from officers association / staff association / labour
union.
Chief manager (personnel)
Deputy manager personnel (gc) who will be the Convenor of the CLGC.
The following cases are to be referred to CLGC
a) Cases on which there is no unanimous opinion among the members of ZLGC in
respect of any grievance.
b) Any particular grievance which requires to be decided at the higher level in the
opinion of ZLGC.
c) Cases where the aggrieved employees are not satisfied with the decision of the
ZLGC and request the ZLGC to refer the cases to CLGC.
The CLGC is an apex body in resolving the grievance. It does not function as
appellate body over the decisions of ZLGC.
DY.Manager personnel (GC) will study the unsolved grievances received from
ZLGC and place them before CLGC will all relevant particulars and records.
Unanimous decisions taken by the CLGC falling within the frame work of the
companys policies and rules will be implemented by the concerned department after
taking approval of the competent authority wherever necessary. Such decisions will be
communicated by DY.Manager personnel to the aggrieved employee in writing and also
to the concerned departments for implementation.
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CLGC will meet once a month during the last week of every month or earlier, if so
needed. If, in any case there is no unanimous decision the Chairman & Managing
Director with full details for decision.
REPORTING SYSTEM
1. A monthly report regarding disposal of grievance by ZLGC / CLGC in a prescribed
proformal will be rendered by DMP (GC) to CM (P) by 7th of the following month. The
DMP (GC) will be the coordinating officer to whom W.O.S will report on the
grievances handled in the shop floor.
2. The monthly reports should contain the following details :
The DMP (GC) will analyze the grievance broadly as to its nature and other
factors which in his opinion are causative for frustration and dissatisfaction among the
employees and suggest remedial measures.
A general review of the IR in the yard will be made by DMP (GC) for the month
under report on the basis of the feed back from W.O.S and on his own.
3. The following types of grievances will not come within the preview of the grievance
committee.
Collective bargaining matters generally falling within the preview of the union
management relationship.
Representation over disciplinary cases and appeals against punishments.
Matters of industrial disputes pending before the conciliation officer/tribunals or
other authorities.
4. The following are the guiding principles in the operation of the grievance procedure.
There will be no appeal over the unanimous decisions of the CLGC.
The ZLGC and CLGC will function within the frame work of companys
policies, rules and procedures.
The CLGC may also suggest improvements over the existing procedures and also
indicate new policy guidelines wherever needed for consideration of the management.
Where the grievance committees feel that the case should be explained to the
aggrieved employee by the committee, they may do so before a formal reply is
communicated.
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Convener
Dy.manager (Safety)
Member
D.G.M. (Steel)
D.G.M. (O & E)
Chief welfare officer
Chief welfare officer
Manager (OHS)
Dy.manager (Fire services)
Six representatives from H.S.Staff and workers union (recognized
union)
Dy.manager (safety) shall act as the convenor and co-ordinate all
meetings of the safety committee.
While going through the minutes of the safety committee meetings, it was
observed that various points are discussed in the following sequence.
1. Conformation of the minutes of previous safety committee.
66
67
f)
(i) Discouraging rearing of cattle viz.,Buffaloes, cows, goats and sheep etc.,
(ii) Eliminating the menace of stray dogs and pigs in the colony ;
g) Improving the standards and facilities in the educational institutions in the colony;
h) Conducting games and sports by way of organising tournaments and
competitions at district, state and national levels;
Constitution of the committee
The committee shall consists of the following :
Chairmen
Members
The S.O. housing estate shall act as the convenor and co-ordinate all meetings of
the colony improvement committee.
While going through the minutes of colony improvement committee meetings it
was observed that various points discussed in the following manner:
1. Street lighting in the colony.
2. Electrical voltage fluctuation.
3. Maintenance of quarters and roads.
4. Generator in the colony dispensary.
5. Maintenance of community hall.
6. Safety dog menace in colony
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Chief manager
2. Secretary
Manager
3. Treasurer
Management representative
4. Members
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constitution
of
P.F.Trust
Board
is
statutory
under
the
Managing trustee
Management trustees
Employee trustees
D (F & C)
G.M.
70
b) For purchasing a dwelling site for the purpose of construction of dwelling house or
ready built dwelling house / flat from any individual.
c)
For the construction of a dwelling house on a site owned by the members or the
NO.OF
RESPONDENTS
71
PERCENTAGE
YES
39
78
NO
11
22
NEUTRA
L
NIL
NIL
TOTAL
50
100
YES
NO
NEUTRAL
NO.OF
RESPONDENTS
PERCENTAGE
YES
35
70
NO
10
20
NEUTRA
L
10
TOTAL
50
100
72
YES
NO
NEUTRAL
3.If no, did you try to know about workers participation in management.
NO.OF
RESPONDENTS
PERCENTAGE
YES
81.81
NO
18.18
NEUTRA
L
NIL
NIL
TOTAL
11
100
73
YES
NO
NEUTRAL
In Hindustan shipyard limited 22% of the respondents are not aware of workers
participation in management scheme. In that 81.81% of the respondents are willing to
know about workers participation in management, where as 18.18% of the respondents
are not willing to know about workers participation in management.
74
NO.OF
RESPONDENTS
PERCENTAGE
YES
20
40
NO
12
24
NEUTRA
L
18
36
TOTAL
50
100
YES
NO
NEUTRAL
5. If yes, whether at any time your suggestions were considered for implementation.
75
NO.OF
RESPONDENTS
PERCENTAGE
YES
15
75
NO
25
NEUTRA
L
NIL
NIL
TOTAL
20
100
YES
NO
NEUTRAL
75%
said
that
their
suggestions
were
consider
for
76
NO.OF
RESPONDENTS
PERCENTAGE
YES
22
44
NO
16
32
NEUTRA
L
12
24
TOTAL
50
100
YES
NO
NEUTRAL
In the sample of 50, 44% respondents are satisfied with the present composition of
participative committees, 32% are not satisfied with the present composition
of participative committees and 24% of respondents are neutral.
77
NO.OF
RESPONDENTS
PERCENTAGE
YES
32
64
NO
16
32
NEUTRA
L
TOTAL
50
100
YES
NO
NEUTRAL
In the sample of 50, 64% respondents are accepting that these committees are
functioning regularly, 32% respondents said that these committees are not
functioning regularly at 4% respondents are neutral.
78
NO.OF
RESPONDENTS
PERCENTAGE
YES
42
84
NO
NIL
NIL
NEUTRA
L
16
TOTAL
50
100
YES
NO
NEUTRAL
79
In the sample of 50, 84% respondents are accepting that workers participation in
management help to maintain harmonious relations between workers and
management. Whereas no one is said that workers participation in management will
not effect the relation between workers and management and 16% respondents are
neutral.
NO.OF
RESPONDENTS
PERCENTAGE
YES
48
96
NO
NEUTRA
L
NIL
NIL
TOTAL
50
100
YES
NO
NEUTRAL
80
In the sample of 50, 96% respondents are accepting that by implementing workers
participation in management help to increase production and productivity. Whereas
4% respondents said that workers participation in management will not effect the
production and productivity.
NO.OF
RESPONDENTS
PERCENTAGE
YES
40
80
NO
16
NEUTRA
L
TOTAL
50
100
YES
NO
NEUTRAL
In the sample of 50, 80% respondents are accepting that workers participation in
management help in improving industrial relations. Whereas 16% respondents said
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that workers participation in management will not effect the industrial relations and
4% respondents are neutral.
11.
Level.
NO.OF
RESPONDENTS
PERCENTAGE
YES
10
20
NO
NEUTRA
L
38
76
TOTAL
50
100
POSITIVE
NEGATIVE
NEUTRAL
In the sample of 50, 20% respondents are accepting that workers participation at
board level / corporate level have positive impact. Whereas 4% respondents said that
workers participation at board level / corporate level have negative impact and 76%
of respondents are not aware of workers participation at board level / corporate level.
82
12. Will you suggest any improvement measures for effective functioning of Workers
Participation in Management.
In the sample of 50, many respondents are neutral for this question. And some
respondents suggestions are:
(i)
(ii)
(iii)
(iv)
83
84
beyond doubt that real involvement could be possible only when there is a proper
system of sharing the gains of increased productivity. When a scheme is introduced
with the main objective of increasing production and productivity, working out as a
proper system of sharing of gains of increased productivity becomes more important.
Informal participative management :
The success of the scheme of participative management depends up on the
success of the informal style of participative management not merely on formal
functioning of the councils or committees framed for this purpose. The reason is that
only few persons from the side of management and employees are involved in the
formal system. The majority of the employees and executives could be involved only
through informal system of participation management. An important exercise for all
those interested in the scheme, therefore, involvement of grass root workers, shop
floor supervisors and departmental executives who are not formally associated with
the scheme and also sustain their enthusiasm in the system. This calls for a change in
the managerial culture itself.
Representative Councils :
The success of the scheme depends upon these representative character of
various councils formed for this purpose and acceptability by the groups. The top
management and trade union representatives should give serious thought to the issue
of making these bodies truly representatives of employees and management. In the
absence of true representative councils, acceptability of the decisions will always be a
major problem. The question of election, nomination or both could be considered
keeping in view the strength, education and group affiliations of the employees. Inter
union revelries and groupisms in the supervisory and managerial cadres are the
greatest bottlenecks in the success of participative schemes of management.
Industrial Relations :
Effective working of participative management depends up on relationship
between the management and employees which is known as industrial relations.
Cordial industrial relations in the organization will prevail when there in mutual trust
and confidence among the parties and consequently favourable organizational climate
could be build.
Boundaries /Limitations of the scheme:
Effective working of any system of participative management depends up on
proper understanding of the boundaries and limitations of the scheme. It is necessary
to understand what does not come under the purview of these scheme.
85
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Conclusions:
The movement of workers participation in management, if it is to attain any
measure of success must come from with in, not under pressure from an outside
agency or Government. Introducing the system in a concern for the sake of it will not
do much good, where conditions are not ripe for successful experiment unless both
the management and unions believe in the necessity and utility of such machinery,
the movement will not make much headway.
In general, workers and unions are appeared in favour of the scheme only
along with the employer. They are elevated to the status of decisions makers. In fact,
some of the union leaders were of the view that any scheme short of this had the
result of workers being made part and parcel of the achievement of the sole objective
of the employers i.e., profits.
It appear that the management do not want disturb the existing employer
employee relationship except that joint consultant may be encouraged to increase
production and productivity and that even if some administrative responsibility is
shared with workers, the ultimate decision should rest with management.
Prof.Zivan Tanix, an expert on the subject concludes in these words It
appears that the experiments of workers participation in India is not only at the
lowest level of evolution but also that workers, unions, employer and state do not
have any real interest in its success. The necessary economical, social, political and
cultural conditions concomitant, to success of such an experiment are not ripe in
India .
It has been opined that the scheme of labour participation has remained
cofined to a few of the workers representatives instead of its getting popular among
general workers. Besides, the management is reluctant to share decision makin
87
power with the workers. In addition to the shop floor and joint management
councils, the management has to courage the constitution of quality circles and small
working groups in the shop floor /section level so as to encourage participation.
For want of empirical research in the working of the scheme, nothing can be
said about the effectiveness of this scheme. A great deal of evaluative theoretical
writing on the subject has questioned the advantage of the implementation of the
scheme. It has been argued that when, in the absence of the committees and
shop councils have failed miserably. It is futile to think of the scheme for the
representation of workers on the Board of Management of an enterprise, which calls
for a higher degree of participation. A study of the scheme in the Nationalised Banks
Conducted by the National Labor Institute has shown that it has failed fostering a
congenial relationship based on mutual trust, respect, understanding and cooperation. It has also been observed that it has had little impact on industrial relations
or on decision making.
Though the scheme of workers participation in management has not shown
satisfactory results, it should be made to work at least in the field of increasing
production and productivity of labour by giving the workers a feeling that he is an
integral and important part of the organization and so creating a climate in which he
may get reasonable opportunities to show his worth in contributing his share to the
production targets. Joint consultation should form part of the labour management
decisions an important issues affecting not only production but also the very working
lives the employees.
Management should have a constructive attitude and should regard trade unions not
as an obstacle to be overcome but as a highly valuable and powerful instrument
which, if properly handled, can be of very great help in increasing production and
productivity. Both employers and Unions should solemnly resolve to carry on the
experiment in proper spirit. The Government should take responsibility for the
provision of a satisfactory workers education programme so that they may be
properly equipped for their tasks. The scheme seems to have a bright future, if the
approach is made in a right direction.
Last but not least in the context of new economic policies, Liberalisation of Industrial
Licensing system, the Government of India will have to consider and evolve suitable
motivational schemes such that they create interest to the Management and Trade
Unions to evince voluntary interest in the various schemes of Employee participation
in Management.
88
QUESTIONNAIRE
1.
Personnel Details
a. Name
b. Age
c. Department
d. Designation
e. Educational Qualification :
PG: ____
Degree: _____
making.
b. Workers representing in Management forums such as Canteen Committee,
Shop Floor Committee, Joint Council Committee etc.
4. If no, did you try to know about workers participation in Management.
Y/N
89
5.
6. If yes, whether at any time your suggestions were considered for implementation.
Y/N
7.
8.
9.
90
BIBLOGRAPHY
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