ASSIGNMENT Course Code Course Title Assignment Code Coverage : : : : MS - 24 Employment Relations MS-24/SEM - I /2011 All Blocks

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1) Trace down the evolution of Industrial Relations in Indian Context. Explain the concept and approaches of industrial relations. Critically evaluate the industrial relations scenario of any organization you are familiar with. Discuss its advantages and disadvantages with example. Briefly describe the organization you are referring to. Solution : Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management). Concept of Industrial Relations: The term Industrial Relations comprises of two terms: Industry and Relations. Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged. By relations we mean the relationships that exist within the industry between the employer and his workmen.

The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated. The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relations was broadly defined to include the relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 1

resource management, employee relations, and union-management (or labor) relations. Now its meaning has become more specific and restricted. Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers. The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises. Industrial relations define relationships between employers and employees toward each other in terms of supervision, direction, planning and coordination of organizational activities, with minimal human effort and functions; all this done with an enthusiastic spirit taking into consideration the safety of all employees. Industrial relations may also be defined as relations between employees and management. The evolution of industrial relations in India began a long time ago. The caste system greatly influenced the ancient industries and their development. Due to successive foreign invasions in India, the living conditions of slave and artesian couldn't be differentiated. Furthermore, under the autocratic regime of Muslim rulers, the conditions of employees worsened. Wages were not guaranteed, the living conditions of workers were harsh, and there was no proper management. The coming of the British didn't improve the working conditions. After some time, however, most Indian industries were modeled after the British system of business, and this led to growth in various sectors. During British rule, India was expected to be a colonial market for British goods up until a cotton mill was established in Mumbai in 1853 and a jute mill was established in Kolkatta in 1955. The working conditions of workers, however, were still very harsh with low pay, and this gave rise to various disputes involving the management and employees. On the other hand, Tata Iron and Steel industry was also established in Jamshedpur in 1911. While there was great demand of iron and steel before and during the First World War, the working conditions of workers hadn't improved. Hence, the Factories Act of 1881 was established, and it granted workers certain rights. The First World War was an opportunity in disguise for local factories in India. Prices of virtually all products went up and profits soared, however, wages of lower employees were still the same. There were various strikes and disputes between management and employees. During this time, the Workmen's Compensation Act (1923), the Trade Union Act (1926), and the Trade Disputes Act (1917) were established. While the wages of employees remained the same, they were given a certain share of profits made by their hiring industry. Strikes, however, were sometimes prohibited under the Emergency Rules. The years following World War II involved the most workers' upheaval, and saw the establishment of Industrial Employment Act (1946) and Industrial Disputes Act (1947). The post-independence era saw a developing relation between industry and labor. A conference called the Industrial Truce Resolution took place in 1947, and foresaw the establishment of the Minimum Wages Act, Factories Act, and Employees State Insurance Act in 1948. This ensured peace between labor and industry. While industrial relations in India have evolved a long way, some features of the early system still exist today. Modern industrial relations are dynamic, and may integrate industrial policies of American and British businesses. Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 2

The concept of Industrial relations has been defined using various terminologies, but in the strictest sense, it is essentially the relationship between management and labor. The full concept of industrial relations is the organization and practice of multi-pronged relationships between labor and management, unions and labor, unions and management in an industry. Dale Yoder defines it as a "whole field of relationships that exists because of the necessary collaboration of men and women in the employment process of an industry." Industrial relations are associated with labor, management, labor unions, and the state. The scene of industrial relations has grown tremendously, and cannot be represented merely by relations between management and labor. It has become a comprehensive and total concept embracing the sum total of relationship that exists at various levels of the organizational structure. Additionally, it connotes relationships between workers themselves within the labor class, and relations among the management within the managerial class. In an open sense, industrial relations denote all types of relations within a group and outside a group - both formal and informal relations. The objectives of industrial relations are: 1. Protect management and labor interests by securing mutual relations between the two groups. 2. Avoid disputes between management and labor, and create a harmonizing relationship between the groups so productivity can be increased. 3. Ensure full employment and reduce absenteeism, hence, increasing productivity and profits. 4. Emphasize labor employer partnership to establish and maintain industrial democracy. This is done to ensure the sharing of profit gains, and personal developmental of all all employees. 5. Provide better wages and living conditions to labor, so misunderstandings between management and labor are reduced to a minimum. 6. To bring about government control over plants where losses are running high, or where products are produced in the public interest. 7. To bridge a gap between various public factions and reshape the complex social relationships emerging out of technological advances by controlling and disciplining members, and adjusting their conflicts of interests.

Above: Conceptual model for a better understanding of Industrial Relations State intervention in business is necessary in a developing country because of the following reasons:

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1. Developing countries lack powerful labor unions, enabling organizations to exploit workers and even ignore their demands. This is why governments have to step in and play a role in delineating certain parameters of industrial relations. 2. When the conditions of laborers worsen, and/or disputations arise, the government cannot be a silent bystander. It has to intervene in the situation and try to satisfy both sides by being a preceptor or an intermediary, and establish peace. 3. The federal nature of the constitution has made it imperative for the state to intervene in matters of labor to ensure a smooth and continuous operation. The state and the central governments have established certain laws that have to be followed by businesses. These are: the Plantations Act of 1952, the Minimum Wages Act of 1948, the Industrial Disputes Act, the Payment of Bonus Act of 1965, the Contract Labor Act of 1970, the Payment of Gratuity Act of 1972, the Bonded Labor System Act and the Remuneration Act of 1978. 4. The Directive Principals of the Constitution enjoin upon the state to establish a welfare state and to look after the interests of the weaker sections of the society, for example, the physically disabled. Tripartite Bodies: The principals and policies of the tripartite body have been a machinery of consultancy at the industrial and national levels. The tripartite body was established to make peace and improve relations between management and unions, and maintain smooth functioning of union management relations. It began as a statutory organization by the recommendation of the Whitey Commission to the ILO in 1931. The tripartite body had to be sufficiently large to ensure sufficient representation of the various interests involved; encourage representatives of employers, labor and government to meet regularly; and disallow individual members from making individual contributions to meetings. The purpose of the tripartite body is to: a. Bring the aggravated parties together for mutual settlement of differences, and encourage a spirit of cooperation and goodwill. b. Promote uniformity in labor laws and legislation. c. Discuss all matters of All India importance as between employers and employees. d. Determine a plan for settlement for all disputes. Bipartite bodies: With the beginning of industrialization of India, labor relations in Indian industries have also been largely influenced by Indian democracy. Groups like Works Committee and Management Council were established to democratize Indian industrial relations. The bipartite consultation machinery was established around 1920, during the time when a few joint committees were setup by the Government of India. These joint committees were also introduced in TISCO in Jamshedpur. Fundamentals of Industrial Settlement: 1. Both parties have to realize that the country is breaking away from the past, and this is going to put continuous pressure on the quality of man-power and demands from human resources. 2. Both parties have to realize that to run a successful and profitable business, team work is extremely important. This gives rise to timely response and supply of goods to the society. Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 4

3. Both the parties accept the charters of "Human Resources Policy" summarized below: a. Individuals must make every effort to improve their job skills through training and participating in developmental activities. b. Each employee must keep his/her job skills up-to-date with changing business practices and operations. c. Machineries should be used throughout the year with trained staff readily available to operate it. d. Indirect employees may be converted to direct employees for increasing business efficiency. e. Absenteeism and unnecessary delays must be reduced through planning. f. Short-term employment must be avoided. Long-term employment should be encouraged and highly trained employees must be hired. g. The above steps must be utilized to increase company productivity; exploitation of employees must be disallowed. h. High emphasis must be placed upon the quality of work. The Zero Defect policy must be always followed. i. (i): Employees must make a stand to follow the "Human Resources Policy" individually or collectively. (ii): Both the parties should closely and routinely monitor change in productivity, and take necessary steps to avoid undesirable consequences. The Marxist Approach The class conflict analysis of industrial relations derives its impetus from Marxist social thinking and interpretation. Marxism is essentially a method of social enquiry into the power relationships of society and a way of interpreting social reality. The application of Marxian theory as it relates to industrial relations derives indirectly from later Marxist scholars rather than directly from the works of Marx himself. Industrial relations, according to Marxists, are in the first instance, market-relations. To Marxists, industrial relations are essentially politicized and part of the class struggle. For Marxists industrial and employee relations can only be understood as part of a broader analysis of capitalist society in particular the social relations of production and the dynamics of capital accumulation. As Marx himself put it, the mode of production in material life determines the general character of the social, political and spiritual process of life. The Marxist approach is primarily oriented towards the historical development of the power relationship between capital and labour. It is also characterised by the struggle of these classes to consolidate and strengthen their respective positions with a view to exerting greater influence on each other. In this approach, industrial relations is equated with a power-struggle. The price payable for labour is determined by a confrontation between conflicting interests. The capitalist ownership of the enterprise endeavours to purchase labour at the lowest possible price in order to maximise their profits. The lower the price paid by the owner of the means of production for the labour he employs, the greater is his profit. The Marxist analysis of industrial relations, however, is not a comprehensive approach as it only takes into account the relations between capital and labour. It is rather, a general theory of society and of social change, which has implications for the analysis of industrial relations within what Marxists would describe as capitalist societies. The Pluralist Approach Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 5

Pluralism is a major theory in labour-management relations, which has many powerful advocates. The focus is on the resolution of conflict rather than its generation, or, in the words of the pluralist, on the institutions of job regulation. Kerr is one of the important exponents of pluralism. According to him, the social environment is an important factor in industrial conflicts. The isolated masses of workers are more strike-prone as compared to dispersed groups. When industrial jobs become more pleasant and employees get more integrated into the wider society, strikes will become less frequent. Ross and Hartmans cross national comparison of strikes postulates the declining incidents of strikes as societies industrialise and develop appropriate institutional framework. They claim that there has been a decline in strike activity all over the world in spite of an increase in union membership. The theories on pluralism were evolved in the mid-sixties and early seventies when England witnessed a dramatic resurgence of industrial conflicts. However, the recent theories of pluralism emanate from British scholars, and in particular from Flanders and Fox. According to Flanders, conflict is inherent in the industrial system. He highlighted the need for a formal system of collective bargaining as a method of conflict resolution. Fox distinguishes between two distinct aspects of relationship between workers and management. The first is the market relationship, which concerns with the terms and conditions on which labour is hired. This relationship is essentially economic in character and based on contracts executed between the parties. The second aspect relates to the managements dealing with labour, the nature of their interaction, negotiations between the union and management, distribution of power in the organisation, and participation of the union in joint decision-making. The major critics of the pluralist approach are the Marxists according to whom exploitation and slavery will continue unabated in the institutional structure of pluralism. The only difference is that in such a social structure, the worker will be deemed to be a better-paid wage slave. Webers Social Action Approach The social action approach of Weber has laid considerable importance to the question of control in the context of increasing rationalisation and bureaucratisation. Closely related to Webers concern related to control in organisations was his concern with power of control and dispersal. Thus a trade union in the Webers scheme of things has both economic purposes as well as the goal of involvement in political and power struggles. Some of the major orientations in the Weberian approach have been to analyse the impact of techno-economic and politico-organisational changes on trade union structure and processes, to analyse the subjective interpretation of workers approaches to trade unionism and finally to analyse the power of various components of the industrial relations environment government, employers, trade unions and political parties. Thus the Weberian approach gives the theoretical and operational importance to control as well as to the power struggle to control work organisations a power struggle in which all the actors in the industrial relations drama are caught up. The Human Relations Approach In the words of Keith Davies, human relations are the integration of people into a work situation that motivates them to work together productively, cooperatively and with economic, psychological and social Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 6

satisfactions. According to him, the goals of human relations are: (a) to get people to produce, (b) to cooperate through mutuality of interest, and (c) to gain satisfaction from their relationships. The human relations school founded by Elton Mayo and later propagated by Roethlisberger, Whitehead, W.F. Whyte, and Homans offers a coherent view of the nature of industrial conflict and harmony. The human relations approach highlights certain policies and techniques to improve employee morale, efficiency and job satisfaction. It encourages the small work group to exercise considerable control over its environment and in the process helps to remove a major irritant in labour-management relations. But there was reaction against the excessive claims of this school of thought in the sixties. Some of its views were criticised by Marxists, pluralists, and others on the ground that it encouraged dependency and discouraged individual development, and ignored the importance of technology and culture in industry. Taking a balanced view, however, it must be admitted that the human relations school has thrown a lot of light on certain aspects such as communication, management development, acceptance of workplace as a social system, group dynamics, and participation in management. The Gandhian Approach Gandhiji can be called one of the greatest labour leaders of modern India. His approach to labour problems was completely new and refreshingly human. He held definite views regarding fixation and regulation of wages, organisation and functions of trade unions, necessity and desirability of collective bargaining, use and abuse of strikes, labour indiscipline, workers participation in management, conditions of work and living, and duties of workers. The Ahmedabad Textile Labour Association, a unique and successful experiment in Gandhian trade unionism, implemented many of his ideas. Gandhiji had immense faith in the goodness of man and he believed that many of the evils of the modern world have been brought about by wrong systems and not by wrong individuals. He insisted on recognising each individual worker as a human being. He believed in non-violent communism, going so far as to say that if communism comes without any violence, it would be welcome. Gandhiji laid down certain conditions for a successful strike. These are: (a) the cause of the strike must be just and there should be no strike without a grievance; (b) there should be no violence; and (c) non-strikers or blacklegs should never be molested. He was not against strikes but pleaded that they should be the last weapon in the armory of industrial workers and hence should not be resorted to unless all peaceful and constitutional methods of negotiations, conciliation and arbitration are exhausted. His concept of trusteeship is a significant contribution in the sphere of industrial relations. According to him, employers should not regard themselves as sole owners of mills and factories of which they may be the legal owners. They should regard themselves only as trustees, or co-owners. He also appealed to the workers to behave as trustees, not to regard the mill and machinery as belonging to the exploiting agents but to regard them as their own, protect them and put to the best use they can. In short, the theory of trusteeship is based on the view that all forms of property and human accomplishments are gifts of nature and as such, they belong not to any one individual but to society. Thus, the trusteeship system is totally different from other Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 7

contemporary labour relations systems. It aimed at achieving economic equality and the material advancement of the have-nots in a capitalist society by non-violent means. Gandhiji realised that relations between labour and management can either be a powerful stimulus to economic and social progress or an important factor in economic and social stagnation. According to him, industrial peace was an essential condition not only for the growth and development of the industry itself, but also in a great measure, for the improvement in the conditions of work and wages. At the same time, he not only endorsed the workers right to adopt the method of collective bargaining but also actively supported it. He advocated voluntary arbitration and mutual settlement of disputes. He also pleaded for perfect understanding between capital and labour, mutual respect, recognition of equality, and strong labour organisation as the essential factors for happy and constructive industrial relations. For him, means and ends are equally important. Human Resource Management Approach The term, human resource management (HRM) has become increasingly used in the literature of personnel/industrial relations. The term has been applied to a diverse range of management strategies and, indeed, sometimes used simply as a more modern, and therefore more acceptable, term for personnel or industrial relations management. Some of the components of HRM are: (i) human resource organisation; (ii) human resource planning; (iii) human resource systems; (iv) human resource development; (v) human resource relationships; (vi) human resource utilisation; (vii) human resource accounting; and (viii) human resource audit. This approach emphasises individualism and the direct relationship between management and its employees. Quite clearly, therefore, it questions the collective regulation basis of traditional industrial relations. In sharp contrast is the case of Calcutta, where a highly politicized industrial relations regime prevails with the dominant trade union federation (the CITU) under the close watch of the dominant political party (the CPI-M). This has created considerable inflexibilities for management, and has partly prohibited the growth of independent trade unionism. Bangalore, a city where both private and public sector enterprises thrive, especially those in the information technology industry, has witnessed the rise of plant and firmbased unions (as in Mumbai). Inter-city differences, attributable no doubt to different political, social, and urban histories, emphatically suggest the inherent difficulties in trying to generalize about an "Indian" labour relations system. With the passing of time, especially with the onset of the fourth phase (see below), attempts at this kind of generalization will become more and more difficult. Changes in union structure, together with macroeconomic developments, considerably affected both employment and the wage structure. Between 1980/81 and 1988/89, while employment growth declined, the capital-labour ratio and labour productivity increased by 8 per cent and 7.5 per cent per year respectively (Ahluwalia, 1992). According to Ghose (1992, p. 95), "The most striking fact is that the 80s have been the best decade in terms of economic growth but the worst decade in terms of employment generation". Moreover, employment growth decelerated in all sectors of the economy and open unemployment increased in the 1980s (Ghose, 1992). The search for labour market flexibility in Indian manufacturing led labour-intensive firms and those engaged in the production of consumer non-durables to subcontract and outsource their production to the unorganized sectors (Ramaswamy, 1999). Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 8

2) Explain the development of trade unions in India. Describe the functions of trade unions in an organizational set up. Critically evaluate the changing role and relevance of Trade unions in this era of globalization in an organization you are familiar with. Briefly describe the organization you are referring to. Solution : The trade unionism in India developed quite slowly as compared to the western nations. Indian trade union movement can be divided into three phases. The first phase (1850 to1900) During this phase the inception of trade unions took place. During this period, the working and living conditions of the labor were poor and their working hours were long. Capitalists were only interested in their productivity and profitability. In addition, the wages were also low and general economic conditions were poor in industries. In order to regulate the working hours and other service conditions of the Indian textile laborers, the Indian Factories Act was enacted in 1881. As a result, employment of child labor was prohibited. The growth of trade union movement was slow in this phase and later on the Indian Factory Act of 1881 was amended in 1891. 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 by this time. The second phase (1900 to 1946) This phase was characterized by the development of organized trade unions and political movements of the working class. Between 1918 and 1923, many unions came into existence in the country. At Ahmedabad, under the guidance of Mahatma Gandhi, occupational unions like spinners unions and weavers unions were formed. A strike was launched by these unions under the leadership of Mahatma Gandhi who turned it into a satyagrah. These unions federated into industrial union known as Textile Labor Association in 1920.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. During 1928, All India Trade Union Federation (AITUF) was formed. The third phase began with the emergence of independent India (in 1947). The partition of country affected the trade union movement particularly Bengal and Punjab. By 1949, four central trade union organizations were functioning in the country: 1. 2. 3. 4. The All India Trade Union Congress, The Indian National Trade Union Congress, The Hindu Mazdoor Sangh, and The United Trade Union Congress

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 Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 9

Banking, Insurance and Petroleum industries. Trade unions in India The Indian workforce consists of 430 million workers, growing 2% annually. The Indian labor markets consist of three sectors: 1. The rural workers, who constitute about 60 per cent of the workforce. 2. Organized sector, which employs 8 per cent of workforce, and 3. The urban informal sector (which includes the growing software industry and other services, not included in the formal sector) which constitutes the rest 32 per cent of the workforce. At present there are twelve Central Trade Union Organizations in India: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. All India Trade Union Congress (AITUC) Bharatiya Mazdoor Sangh (BMS) Centre of Indian Trade Unions (CITU) Hind Mazdoor Kisan Panchayat (HMKP) Hind Mazdoor Sabha (HMS) Indian Federation of Free Trade Unions (IFFTU) Indian National Trade Union Congress (INTUC) National Front of Indian Trade Unions (NFITU) National Labor Organization (NLO) Trade Unions Co-ordination Centre (TUCC) United Trade Union Congress (UTUC) and United Trade Union Congress - Lenin Sarani (UTUC - LS)

Objectives Of Trade Unions Trade unions are formed to protect and promote the interests of their members. Their primary function is to protect the interests of workers against discrimination and unfair labor practices. Trade unions are formed to achieve the following objectives: Representation Trade unions represent individual workers when they have a problem at work. If an employee feels he is being unfairly treated, he can ask the union representative to help sort out the difficulty with the manager or employer. Unions also offer their members legal representation. Normally this is to help people get financial compensation for work-related injuries or to assist people who have to take their employer to court.

Negotiation Negotiation is where union representatives, discuss with management, the issues which affect people working in an organization. There may be a difference of opinion between management and union members. Trade unions negotiate with the employers to find out a solution to these differences. Pay, working hours, holidays and changes to working practices are the sorts of issues that are negotiated. In many workplaces there is a formal agreement between the union and the company which states that the union has the right to negotiate with the employer. In these organizations, unions are said to be recognized for collective bargaining purposes.

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Voice in decisions affecting workers The economic security of employees is determined not only by the level of wages and duration of their employment, but also by the managements personal policies which include selection of employees for lay offs, retrenchment, promotion and transfer. These policies directly affect workers. The evaluation criteria for such decisions may not be fair. So, the intervention of unions in such decision making is a way through which workers can have their say in the decision making to safeguard their interests.

Member services During the last few years, trade unions have increased the range of services they offer their members. These include:

Education and training - Most unions run training courses for their members on employment rights, health and safety and other issues. Some unions also help members who have left school with little education by offering courses on basic skills and courses leading to professional qualifications. Legal assistance - As well as offering legal advice on employment issues, some unions give help with personal matters, like housing, wills and debt. Financial discounts - People can get discounts on mortgages, insurance and loans from unions.

Welfare benefits - One of the earliest functions of trade unions was to look after members who hit hard times. Some of the older unions offer financial help to their members when they are sick or unemployed.

Functions Of Trade Unions Trade unions perform a number of functions in order to achieve the objectives. These functions can be broadly classified into three categories: (i) Militant functions, (ii) Fraternal functions Militant Functions One set of activities performed by trade unions leads to the betterment of the position of their members in relation to their employment. The aim of such activities is to ensure adequate wages, secure better conditions of work and employment, get better treatment from employers, etc. When the unions fail to accomplish these aims by the method of collective bargaining and negotiations, they adopt an approach and put up a fight with the management in the form of go-slow tactics, strike, boycott, gherao, etc. Hence, these functions of Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 11

the trade unions are known as militant or fighting functions. Thus, the militant functions of trade unions can be summed up as:

To achieve higher wages and better working conditions To raise the status of workers as a part of industry To protect labors against victimization and injustice

Fraternal Functions Another set of activities performed by trade unions aims at rendering help to its members in times of need, and improving their efficiency. Trade unions try to foster a spirit of cooperation and promote friendly industrial relations and diffuse education and culture among their members. They take up welfare measures for improving the morale of workers and generate self confidence among them. They also arrange for legal assistance to its members, if necessary. Besides, these, they undertake many welfare measures for their members, e.g., school for the education of children, library, reading-rooms, in-door and out-door games, and other recreational facilities. Some trade unions even undertake publication of some magazine or journal. These activities, which may be called fraternal functions, depend on the availability of funds, which the unions raise by subscription from members and donations from outsiders, and also on their competent and enlightened leadership. Thus, the fraternal functions of trade unions can be summed up as:

To take up welfare measures for improving the morale of workers To generate self confidence among workers To encourage sincerity and discipline among workers To provide opportunities for promotion and growth To protect women workers against discrimination

Importance Of Trade Unions The existence of a strong and recognized trade union is a pre-requisite to industrial peace. Decisions taken through the process of collective bargaining and negotiations between employer and unions are more influential. Trade unions play an important role and are helpful in effective communication between the workers and the management. They provide the advice and support to ensure that the differences of opinion do not turn into major conflicts. The central function of a trade union is to represent people at work. But they also have a wider role in protecting their interests. They also play an important educational role, organizing courses for their members on a wide range of matters. Seeking a healthy and safe working environment is also prominent feature of union activity. Trade unions help in accelerated pace of economic development in many ways as follows:

by helping in the recruitment and selection of workers. by inculcating discipline among the workforce by enabling settlement of industrial disputes in a rational manner by helping social adjustments. Workers have to adjust themselves to the new working conditions, the new rules and policies. Workers coming from different backgrounds may become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.

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Trade unions are a part of society and as such, have to take into consideration the national integration as well. Some important social responsibilities of trade unions include:

promoting and maintaining national integration by reducing the number of industrial disputes incorporating a sense of corporate social responsibility in workers achieving industrial peace

Reasons For Joining Trade Unions he important forces that make the employees join a union are as follows: 1. Greater Bargaining Power The individual employee possesses very little bargaining power as compared to that of his employer. If he is not satisfied with the wage and other conditions of employment, he can leave the job. It is not practicable to continually resign from one job after another when he is dissatisfied. This imposes a great financial and emotional burden upon the worker. The better course for him is to join a union that can take concerted action against the employer. The threat or actuality of a strike by a union is a powerful tool that often causes the employer to accept the demands of the workers for better conditions of employment. 2. Minimize Discrimination The decisions regarding pay, work, transfer, promotion, etc. are highly subjective in nature. The personal relationships existing between the supervisor and each of his subordinates may influence the management. Thus, there are chances of favoritisms and discriminations. A trade union can compel the management to formulate personnel policies that press for equality of treatment to the workers. All the labor decisions of the management are under close scrutiny of the labor union. This has the effect of minimizing favoritism and discrimination. 3. Sense of Security The employees may join the unions because of their belief that it is an effective way to secure adequate protection from various types of hazards and income insecurity such as accident, injury, illness, unemployment, etc. The trade union secure retirement benefits of the workers and compel the management to invest in welfare services for the benefit of the workers. 4. Sense of Participation The employees can participate in management of matters affecting their interests only if they join trade unions. They can influence the decisions that are taken as a result of collective bargaining between the union and the management. 5. Sense of Belongingness Many employees join a union because their co-workers are the members of the union. At times, an employee joins a union under group pressure; if he does not, he often has a very difficult time at work. On the other hand, those who are members of a union feel that they gain respect in the eyes of their fellow workers. They can also discuss their problem with the trade union leaders. 6. Platform for self expression The desire for self-expression is a fundamental human drive for most people. All of us wish to share our feelings, ideas and opinions with others. Similarly the workers also want the management to listen to them. A trade union provides such a forum where the feelings, ideas and opinions of the workers could be discussed. It can also transmit the feelings, ideas, opinions and complaints of the Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 13

workers to the management. The collective voice of the workers is heard by the management and give due consideration while taking policy decisions by the management. 7. Betterment of relationships Another reason for employees joining unions is that employees feel that unions can fulfill the important need for adequate machinery for proper maintenance of employer-employee relations. Unions help in betterment of industrial relations among management and workers by solving the problems peacefully. A company that once employed 40,000 people in the British Midlands, with an equal number employed in the factories of suppliers, had been forced to scale down its operations over the years. But even skeletal operations with 4,000 people has now ceased. It is an example of what destructive trade unionism can do to an industry. Arthur Scargil in the 1980s set out to destroy industry in the Midlands with his brand of militant and destructive trade unionism. Finally Mrs Thatcher stood up to him and showed him the limits to which trade unions could push industry. She privatised industries and Scargil lost his power base, which was mainly in public sector heavy industries. Successive governments in Britain after Mrs Thatcher have refused to bail out public sector undertakings with subsidies and grants. This has resulted in Britain transforming itself from being the sick man of Europe to one of the more dynamic economies in the West. In India too we have had examples of the Arthur Scargil brand of trade unionism. What Datta Samant did to the cotton textile and engineering industries in Mumbai was equally devastating. Almost all the textile mills in the city closed because of the unreasonable demands made by trade unions under Datta Samant. India has the advantages of (a) growing both long staple and short staple cotton and (b) a huge domestic market. We could have been the cotton textile source for the whole world. But battling militant trade unions, on the one hand, while coping with price controls imposed by unimaginative governments and textile quotas imposed by foreign governments, on the other, proved too much for our textile industry. It did not have the necessary financial and managerial resources, and it failed to modernise and remain competitive in terms of quality and cost. So it declined and became terminally ill. Trade unions are a legitimate system for organising workers and to voice their rights and grievances. Without them companies would become either too paternalistic or too dictatorial. Responsible unions help to create a middle path in the relationship between management and labour while maintaining the responsibilities of the former and the dignity of the latter. Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 14

Where things go wrong is when the management becomes authoritarian, especially in owner/familymanaged companies, or when a trade union leader allows emotion and ego to overcome reason. Fortunately today, workers have become better informed and aware of the economic forces that impact their industry. The media has helped to create much greater economic awareness. So it is not so easy to mislead them. Managements too have become more sensitive and skilled in handling relationships with employees. This is true of even family-owned and managed businesses. TVS in the South is a prime example of how a large family-managed industrial group has successfully managed its relationship with employees through enlightened management. There are more such examples in other parts of the country. Perhaps the labour departments of governments at the state and the Centre should sponsor the institutes of management to do case studies of companies that have built up such successful relationships. Instead of merely administering rules and labour laws, these government departments could also act as apostles of good practices in the field. As the skill levels and educational qualifications of employees advance, the role and significance of trade unions tend to diminish. This is because (a) employees are able to represent their own case and (b) managements are more sensitive to the needs of individual employees, whose intellectual skills become almost uniquely valuable. This is already happening in the sunrise industries based on brainpower such as IT and telecommunications. Another phenomenon in these modern industries is that employees have greater opportunity and tendency to move from one company to another, not only because of better terms of employment but also because of their yearning to learn new skills. This appetite for learning is something remarkable, especially in the IT industry. In fact, people in that industry are more bothered about what they can learn in a company than about how much they earn. This phenomenon is facilitated by the fact that there are plenty of employment opportunities in IT and it is a young industry. That is why one does not notice any union flags in the Silicon Valley of India/Bangalore's Electronic City. Trade unions have declined in their importance even in the UK, the original home of trade unions. The UK's Labour Party was formed by socialist leaders of trade unions. Responsible trade union leaders with a long-term vision will adapt their policies to suit the new realities. Correspondingly, there has also been a change in the attitude of management, even in family-managed companies. They are now better educated and many of them have been exposed to international education and international markets. Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 15

They realise the dignity of human beings more than their previous generation and therefore are less prone to treat employees in a scurvy manner. More and more companies are investing in management training and development. This has also helped to create much better awareness of the aspirations of workmen, among the managers. Yet the last vestiges of negative union practices continue to persist in monopolistic public services like the state transport undertakings, state electricity boards, etc. The only way to correct this is to corporatise or privatise these undertakings or open them up to competition. A prime example of the change that is possible is what has happened in aviation. Once airline services were opened up to competition, the whole scene changed. Instead of treating passengers with the indifference typical of a public sector employee, Indian Airlines staff learnt even to smile while greeting passengers. In addition, we have created some world-class private carriers in the domestic market who are now set to take wing on international routes. Even the railways can be privatised. 3) Explain the Concept and function of collective bargaining. Briefly discuss the conditions necessary for success of Collective Bargaining. Describe the incidents of collective bargaining you have came across or know of in your organization or any organization you are familiar with. Briefly describe the organization you are referring to. Solution : COLLECTIVE BARGAINING Meaning: Collective bargaining is process of joint decision making and basically represents a democratic way of life in industry. It is the process of negotiation between firms and workers representatives for the purpose of establishing mutually agreeable conditions of employment. It is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation. ILO has defined collective bargaining as, negotiation about working conditions and terms of employment between an employer and a group of employees or one or more employee, organization with a view to reaching an agreement wherein the terms serve as a code of defining the rights and obligations of each party in their employment/industrial relations with one another. Collective bargaining involves discussions and negotiations between two groups as to the terms and conditions of employment. It is called collective because both the employer and the employee act as a group rather than as individuals. It is known as bargaining because the method of reaching an agreement involves proposals and counter proposals, offers and counter offers and other negotiations. Thus collective bargaining: is a collective process in which representatives of both the management and employees participate. is a continuous process which aims at establishing stable relationships between the parties involved. not only involves the bargaining agreement, but also involves the implementation of such an agreement. Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 16

attempts in achieving discipline in the industry is a flexible approach, as the parties involved have to adopt a flexible attitude towards negotiations.

Importance: Collective bargaining includes not only negotiations between the employers and unions but also includes the process of resolving labor-management conflicts. Thus, collective bargaining is, essentially, a recognized way of creating a system of industrial jurisprudence. It acts as a method of introducing civil rights in the industry, that is, the management should be conducted by rules rather than arbitrary decision making. It establishes rules which define and restrict the traditional authority exercised by the management. Importance to employees Collective bargaining develops a sense of self respect and responsibility among the employees. It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group. Collective bargaining increases the morale and productivity of employees. It restricts managements freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged. Effective collective bargaining machinery strengthens the trade unions movement. The workers feel motivated as they can approach the management on various matters and bargain for higher benefits. It helps in securing a prompt and fair settlement of grievances. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced. Importance to employers It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making. Collective bargaining plays a vital role in settling and preventing industrial disputes. Importance to society Collective bargaining leads to industrial peace in the country It results in establishment of a harmonious industrial climate which supports which helps the pace of a nations efforts towards economic and social development since the obstacles to such a development can be reduced considerably. The discrimination and exploitation of workers is constantly being checked. It provides a method or the regulation of the conditions of employment of those who are directly concerned about them. Functions or Type of Activities: A collective bargaining process generally consists of four types of activities- distributive bargaining, integrative bargaining, attitudinal restructuring and intra-organizational bargaining. Distributive bargaining: It involves haggling over the distribution of surplus. Under it, the economic issues like wages, salaries and bonus are discussed. In distributive bargaining, one partys gain is another partys loss. This is most commonly explained in terms of a pie. Disputants can work together to make the pie bigger, so there is enough for both of them to have as much as they want, or they can focus on cutting the pie up, trying to get as much as they can for themselves. In general, distributive bargaining tends to be more competitive. Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 17

This type of bargaining is also known as conjunctive bargaining. Integrative bargaining: This involves negotiation of an issue on which both the parties may gain, or at least neither party loses. For example, representatives of employer and employee sides may bargain over the better training programme or a better job evaluation method. Here, both the parties are trying to make more of something. In general, it tends to be more cooperative than distributive bargaining. This type of bargaining is also known as cooperative bargaining. Attitudinal restructuring: This involves shaping and reshaping some attitudes like trust or distrust, friendliness or hostility between labor and management. When there is a backlog of bitterness between both the parties, attitudinal restructuring is required to maintain smooth and harmonious industrial relations. It develops a bargaining environment and creates trust and cooperation among the parties. Intra-organizational bargaining: It generally aims at resolving internal conflicts. This is a type of maneuvering to achieve consensus with the workers and management. Even within the union, there may be differences between groups. For example, skilled workers may feel that they are neglected or women workers may feel that their interests are not looked after properly. Within the management also, there may be differences. Trade unions maneuver to achieve consensus among the conflicting groups. Process of Collective Bargaining: The collective bargaining process comprises of five core steps: 1. Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employers representatives and the union examine their own situation in order to develop the issues that they believe will be most important. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required. 2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached. 3. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as brainstorming. The exchange of messages takes place and opinion of both the parties is sought. 4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when what ifs and supposals are set forth and the drafting of agreements take place. 5. Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 18

This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.

Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment. Often employees are represented in the bargaining by a union or other labor organization. The result of collective bargaining procedure is called the collective bargaining agreement (CBA). Collective agreements may be in the form of procedural agreements or substantive agreements. Procedural agreements deal with the relationship between workers and management and the procedures to be adopted for resolving individual or group disputes. Pre-requisites for Collective Bargaining: Employers recognition of the trade union. Bargaining must precede other measures: o Neither party should take any unilateral action. o Results of bargaining should be awaited. Employers and employees attitude calls for a change: o The workers and the employers should be quite clear that they are not looking for third party intervention in the form of litigation and adjudication. o They want to sort out their differences in a peaceful way. Top priority to plant level bargaining: o The representatives of the employees must have a firm resolution to have an agreed solution to their individual matters. Negotiations on differences: o Both the parties should negotiate on their points of differences or demands with the sole purpose of making an agreement. Reliance on facts and figures: o In order to make the negotiations result into success, the workers and the management agents must rely on facts and figures to substantiate their claims. Giving up unfair labour practices. Written agreement: o The final decisions should be incorporated in a written agreement. o The agreement should include the validity of the agreed matters as also the frequency of its review. Progress review: Agreements should not be signed and forgotten. Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 19

During their implementation, regular meetings should be held between the representatives of both the parties to watch the progress of the implementation. This way any changes, adjustments and amendments can be effected.

Respect of agreement: Both the parties must respect the agreement and see that it is implemented in a fair and justifiable manner. Arbitration provision: The agreement must include an arbitration clause. Whenever the parties have any differences pertaining to the interpretation of the terms and conditions, the arbitration clause can be resorted to. The Indian Scenario on CB: In India, trade unions gained prominence much later only after 1900. In 1918, Gandhiji - as the leader of the Ahmedabad textile workers advocated the resolution of conflict through CB agreements. But the idea gathered interest only after the Second World War. The Government of that time took steps like setting up of machinery for negotiations, conciliation and arbitration. The trade union movement and also CB agreements became popular after Indian independence. Moving from agreements at the plant level, such agreements spread to industries such as chemicals, petroleum, tea, coal, oil and aluminum. In ports and docks, banking and insurance, collective agreements were arrived at, right at the national level. Assessment of Collective Bargaining in India: Other than in Ahmedabad and Mumbai, so far, collective agreements have not made much headway in India. Reasons: Lack of statutory recognition of unions by the country as a whole. Lack of provisions requiring employers and workers to bargain in good faith. The historical problem of lack of trust between the parties Causes of limited success of CB in India: Problems with unions:

CB mainly depends on the strength of unions. Weak trade unions cannot initiate strong arguments during negotiations. Not many strong unions in India. Indian unions are bogged down by the problems of: multiplicity, inter and intra-union rivalry, weak financial position and non-recognition. So, unanimous decision is unlikely to be presented at the negotiating table.

Problems from Government:

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The Government has not been making any strong efforts for the development of CB. Imposition of many restrictions regarding strikes and lockouts has removed the `edge` of the CB process. Political interference: Interference of political leaders in all aspects of union matters has increased over the years. Almost all unions are associating themselves with some political party or the other. Legal problems:

Now that adjudication is easily accessible, the CB process is losing its importance. Management attitude: In India, managements have a negative attitude towards unions. They do not appreciate their workers joining unions.

Suggestions for better functioning of CB: The Indian Institute of Personnel Management has offered the following suggestions: A progressive and strong management that is conscious of its obligations and responsibilities to the various stakeholders. A truly representative enlightened and strong trade union should come into being and should function on strictly constitutional lines. There should be unanimity between labour and management on the basic objectives of the organization and a mutual recognition of their rights and obligations. When there are several units of the company, there should be a delegation of authority to the local management. A fact-finding approach and a willingness to use new tools should be adopted for the solution of industrial problems.

4) Explain the historical development of workers participation in management (WPM). Describe how workers participation in management is useful for development of the organization. Explain with an example from an organization you are familiar with. Briefly describe the organization you are referring to. Solution : The organization is a multi-country, 13-location business. It manufactures residential and commercial goods. Its structure consists of 1 leader, 8 on the leaders staff 8, other leading management 30 (central sales, marketing customer service organizations), location leadership 13, (location leadership staff 8 + location management 20 x 13 locations = 364). So total leaders/managers about 400, nonmanagement employees about 3000. Participation has evolved over time. And participation has become more mature in its form, just as managers and leaders have become more mature about its importance and use. The driving forces responsible for the maturation of different forms of participation included tumultuous union relations, enlightened leaders and managers who knew there was a tremendous amount of knowledge to tap in the non-management work force, and the advent of more sophisticated business Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 21

systems such as Lean Manufacturing techniques and its many subsets Kanban One Piece Flow, 5S, and so on. Participation probably began in the form of suggestions or suggestion systems or processes. Suggestion systems in their early form were simply written ideas submitted to management and were usually ideas to save money. The systems successes were directly proportional to managements commitment to analyze the employees ideas and provide feedback in the form of recognition or reward, or, an explanation as to why the suggestion was not used. If there was little or no follow-up or poor communications, the system just faded away. Later forms of participation took the form of teams and committees working on a wide variety of issues and projects, some examples would be company recreational events, company sponsored community service work, department equipment layout, training of new employees, safety projects, and even relocation of manufacturing lines from one plant to another, or, from one country to another. Successful participatory systems rely on leadership commitment to their success, recognition of success and great communications of/about policy and participants. The foundation block is trust between management and non-management employees. When participation and involvement completely mature the result is employee engagement. At that point employees care about the businesses success, understand their role in its success, consider themselves stakeholders in the enterprise and are lead by leaders who sponsor a work culture similar to those described in Fortune Magazines 100 Best Companies to Work for It is important to know that most non-management employees report to work with the intent of doing a good job and taking pride in their work. They mature as participating, involved and engaged employees only if the leaders and managers sponsor an environment that offers an invitation to become part the business.

WPM is the participation resulting from the practices which increase the scope for employees share of influence in decision-making at different tiers of organizational hierarchy with concomitant (related) assumption of responsibility. ILO: Workers participation, may broadly be taken to cover all terms of association of workers and their representatives with the decision-making process, ranging from exchange of information, consultations, decisions and negotiations, to more institutionalized forms such as the presence of workers member on management or supervisory boards or even management by workers themselves (as practiced in Yugoslavia). The main implications of workers participation in management as summarized by ILO: Workers have ideas which can be useful; Workers may work more intelligently if they are informed about the reasons for and the intention of decisions that are taken in a participative atmosphere. Objectives: According to Gosep, workers participation may be viewed as: An instrument for increasing the efficiency of enterprises and establishing harmonious relations; A device for developing social education for promoting solidarity among workers and for tapping human talents; Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 22

 A means for achieving industrial peace and harmony which leads to higher productivity and increased production; A humanitarian act, elevating the status of a worker in the society; An ideological way of developing self-management and promoting industrial democracy. Other objectives of WPM can be cited as: To improve the quality of working life (QWL) by allowing the workers greater influence and involvement in work and satisfaction obtained from work; and To secure the mutual co-operation of employees and employers in achieving industrial peace; greater efficiency and productivity in the interest of the enterprise, the workers, the consumers and the nation. Importance: Unique motivational power and a great psychological value. Peace and harmony between workers and management. Workers get to see how their actions would contribute to the overall growth of the company. They tend to view the decisions as `their own and are more enthusiastic in their implementation. Participation makes them more responsible. They become more willing to take initiative and come out with cost-saving suggestions and growthoriented ideas. Essential condition for WPM: The success of workers portion in management depends upon the following conditions. The attitude and outlook of the parties should be enlightened and impartial so that a free and frank exchange of thoughts and opinions could be possible. Where a right kind of attitude exists and proper atmosphere prevails the process of participation is greatly stimulated. Both parties should have a genuine faith in the system and in each other and be willing to work together. The management must give the participating institution its right place in the managerial organization of the undertaking and implementing the policies of the undertaking. The labor, on the other hand, must also whole heartedly co-operate with the management through its trade unions. The foremen and supervisory cadre must also lend their full support so that the accepted policies could be implemented without any resentment on either side. Participation should be real. The issues related to increase in production and productivity, evaluation of costs, development of personnel, and expansion of markets should also be brought under the jurisdiction of the participating bodies. These bodies should meet frequently and their decisions should be timely implemented and strictly adhered to. Further, o Participation must work as complementary body to help collective bargaining, which creates conditions of work and also creates legal relations. o There should be a strong trade union, which has learnt the virtues of unit and self-reliance so that they may effectively take part in collective bargaining or participation. o A peaceful atmosphere should be there wherein there are no strikes and lock-outs, for their presence ruins the employees, harms the interest of the society, and puts the employees to financial losses.

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o Authority should be centralized through democratic management process. The participation should be at the two or at the most three levels. o Programs for training and education should be developed comprehensively. For this purpose, Labor is to be given education not to the head alone, not to the heart alone, not to the hands alone, but it is dedicated to the three; to make the workers think, feel and act. Labor is to be educated to enable him to think clearly, rationally and logically; to enable him to feel deeply and emotionally; and to enable him to act in a responsible way. Conclusion: Management should be prepared to give all information connected with the working of the industry and labor should handle that information with full confidence and responsibility. The workers should become aware of their responsibilities. The leaders should initiate this in them. Similarly, the top management should make the lower echelons to show a new attitude in the light of the new relationship. Scope and ways of participation (Forms): One view is that workers or the trade unions should, as equal partners, sit with the management and make joint managerial decisions. The other view is that workers should only be given an opportunity, through their representatives, to influence managerial decisions at various levels. In practice, the participation of workers can take place by one or all the methods listed below: 1. Board level participation 2. Ownership participation 3. Complete control 4. Staff or work councils 5. Joint councils and committees 6. Collective Bargaining 7. Job enlargement and enrichment 8. Suggestion schemes 9. Quality circles 10. Empowered teams 11. TQM 12. Financial participation Reason for Limited Success : 1. Firstly, the fundamental difficulties in the way lie in the concept itself. There is a basic conflict of interests between the workers and the owners of the business enterprise. Participation involves parting with power. Managements have been reluctant to part with their authority and prerogative to manage the enterprises. Similarly trade unions have not been prepared to divest themselves of their power manifested in bargaining and pressure. 2. Secondly, multiplicity of trade unions and factionalism has been a serious obstacle in the way of workers participation in management. In view of the claims and counter claims, apathy and willingness, hostility and cooperation displayed by rival unions or their factions, designation of workers representatives on the participative forums often becomes a very difficult task.

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3. The government with its anxiety of maintaining cordial relations between labour and management, increasing production and productivity, achieving planned targets and accelerating the pace of economic and industrial development, came forward with different schemes of workers participation in management. Many employers and trade unions still considers them as imposition from outside. Its enforcement by law or compulsion would thwart the very purpose of scheme and would act as serious constraint on its successful implementation. 4. Fourthly, both managements and trade unions have often complained of a plethora of joint bodies in Indian industries for example, works committees, joint management councils, shop councils, unit councils, plant councils, establishment councils, canteen committees, production committees, safety committees, welfare committees, grievance committees , and so on. Thus, it is natural for them to become bewildered by this multiplicity of joint bodies. 5. Another hurdle has been lack of specific arrangements for sharing the gains of participation. Workers are assured in a vague manner, that they would gain if production increases and quality of products improves as a result of participation, but vague and remote expectations cannot be expected to enthuse the workers. A prior arrangement for sharing the fruits of participation is a necessary condition for the success of the scheme on a lasting basis. 6. It is the government in India which is more anxious for the establishment of the schemes of participation than the parties which have to work them out. However, displaying an attitude of cooperation with the government in maintaining industrial harmony, most national organizations of employers and trade unions supported the schemes at the national forums, but they have generally failed to enthuse their affiliates about the usefulness of the schemes. 7. Lastly, it has also been realized that lack of education and training with regard to the content, process, utility and other relevant aspects of participation have also proved an impediment to the growth of workers participation in the country. Since Tata Iron and Steel Company are the pioneers in establishing joint consultation in India, it is worthwhile to look at workers' participation at TISCO. Closer association of employees with management at TISCO began in 1919 and was formalized in August 1956. The purpose was to promote increased productivity, provide a better understanding to the employees of their role and importance, and to satisfy the urge for self expression. The scheme as set up at TISCO consist f a three-tiered system with joint department councils (JDCs) constituted at the departmental level. Next, joint works councils (JWC) for the entire work, and at the top the joint consultative council of management (JCCM). The specific functions of these three bodies were as follows: JDCs were to study operational results and production problems, advice on the steps deemed necessary to promote and rationalize production, improve productivity and discipline and economize cost. Promotion of welfare and safety, encouragement of suggestions and improvement of working conditions also fell within their purview. JWCs were to discharge special function of reviewing every month the working of JDCs and other committees such as Suggestion Box Committee, Safety Committee, Canteen Managing Committee, etc. JCCM was given the task of advising management on production and welfare and also looking at matters referred to by JDCs and JWCs In order to ensure that these committees did not overlap the functions of other committees, separate task groups were formed. Special courses were offered to prepare both Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 25

management and union representatives to effectively utilize the facility. TISCO's experience with workers' participation has been satisfactory. From 1957 to the middle of 1972 JDCs have discussed a total of 14,104 suggestions of which 70.3 per cent have been implemented. These suggestions have covered a wide range of topics and issues, but the most important point to remember, perhaps, is that the councils have been successful in involving workers equally in the process of production. 5) Explain the various approaches to grievance resolution. Describe the mechanism and procedure of grievance handling in any organization you are familiar with. Also high light pitfalls in grievance handling. Briefly describe the organization you are referring to. Solution : GRIEVANCE HANDLING: Purposes of the Grievance Procedure: The primary purposes of a grievance procedure are to: (1) channel conflict into an institutionalized mechanism for peaceful resolution; (2) facilitate communication between labor and management regarding problems that arise in a collective bargaining relationship; (3) enable employees to complain with dignity knowing that there is a system of appeals leading to an impartial decision-maker; and (4) enforce compliance with the terms and conditions negotiated by the parties. Handling Employee Grievance: The following checklist is provided as guidance when an employee comes to you with a complaint: CHECKLIST FOR HANDLING EMPLOYEE COMPLAINTS: PREREQUISITES: -Know the contract. -Make sure that meetings with employees to handle complaints are held in accordance with any contract provisions that regulate the time and/or location for such meetings. -Develop good listening and note taking skills. -Be prepared to spend the time to get the evidence and testimony to support your case and to refute management's case. -Treat all employees fairly and consistently. -Do not make judgments about the case to the employee or anyone else until you get the facts. -Keep good records of all transactions, oral and written, that occur from the time a complaint is brought to you until the case is resolved in the grievance procedure or in arbitration. -Know who, when and how to ask for help. INTERVIEW: -Let the employee tell his/her story without interruption. Take notes. When the employee has finished, ask, "Is there anything else you would like to add?" -Review the employee's description of the case with him/her to make sure you have all the facts. Make sure you get the answers to the questions who, what, when, where, why and how. -Ask the employee for the names, addresses and telephone numbers of any witnesses. Then ask the employee to tell you what he/she thinks each witness knows about the case. Record this information. Try Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 26

to clarify any uncertainties about what a witness is supposed to know. -Ask the employee to give you all of the evidence he/she has concerning the case. Make copies so that no information is lost. -Before the employee leaves, check one more time to make sure you have all the facts, names of witnesses and evidence. REVIEW: -Refer to the grievance procedure in the contract to make sure the issue the employee has raised is defined as a proper subject of a grievance. If you are uncertain, ask for help. If the issue is not a proper subject of a grievance, the best thing to do is to tell the employee and explain how this affects his/her case. -Check to make sure that the procedural requirements set forth in the grievance procedure have been complied with. Key considerations include: -Is the complaint timely? -Who should the employee and/or union representative meet with at the first step? -What information must be presented by both parties at the first step? -Review the contract provisions alleged to have been violated to make sure they fit the issue described by the employee and that no provisions have been left out. -Review the evidence. Go through all the documents the employee has given you. Make sure everything is dated and signed. Carefully check the content of each document to find out what it actually states, if this information pertains to the case and is timely. Check for inconsistencies in the documents and between the documents and the information the employee has given you. Make a list of all inconsistencies. Check to see if the documents contain the names of other potential witnesses that the employee did not mention and/or that might be called by management. Make a list of these persons and find out how to contact them. -Find out is there is any other evidence, e.g., rules and regulations, past grievances and arbitration decisions, past practice, documents in the employee's personnel file that he/she may not have, etc., that have a bearing on the case as viewed by both the union and the employer. Request documents from the employer as appropriate, in a timely fashion and in writing. -Match the evidence you have with the list of potential witnesses. Make a list of questions to ask each witness when you interview them. Be sure to include at the end of each list the questions, "Is there anything else you would like to add?" and "Do you know of any other witnesses?" -Interview witnesses. Apply the guidelines as set forth in II. Also, carefully check the following things as you consider what witnesses state that they know about the case: -Does the witness have direct personal knowledge about what happened or is his/her knowledge based only on hearsay (i.e., second hand)? -Is the witness credible (i.e., able to give a reasonable explanation about the events, and an honest, accurate accounting even if this means revealing negative things about his/her record/conduct)? -Does the witness' statement confirm what the employee has said, or are there differences/inconsistencies? -Does the witness have any reason to be less than truthful in stating what he/she knows about the case? -If there is more than one witness who knows about a given event, note which ones would be best able to present clear testimony under the pressure of examination and cross-examination at an arbitration hearing. Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 27

-Verify name, address, telephone, work shift and location. ANALYSIS: After you have thoroughly reviewed all of these matters, you may find that a complaint is not grievable/arbitrable or that the case lacks merit. One way to proceed is to explain your findings to the employee and ask if there is any additional information he/she has that might have a bearing on the case. If not, you should be guided by local or international union policy and perhaps by counsel, in determining how to handle this situation. Grievances lacking merit should be screened out to conserve a union's resources for other cases. This can be done by committee in consultation with an international representative or counsel. This determination should be made with care because unions have a legal duty to fairly represent all employees in the bargaining unit whether or not they are union members. -Can you account for any inconsistencies in the case and, if so, how? -Are there any mitigating circumstances that could explain the employee's behavior and thus lessen or remove any disciplinary action? -Does the evidence and testimony the union has demonstrate one or all of the following: -Disparate treatment; -Arbitrary and capricious action; and/or Discrimination. -Are there any past practices which pertain to the case and, if so, how? -Does the evidence and testimony the union has support the remedy requested or should some modification be made in that remedy? -Do you have hard evidence and testimony based upon direct personal knowledge to support your case or is your case largely based upon circumstantial evidence? -Is the remedy requested reasonable or is it nonsensical, outside the scope of the employer's or of an arbitrator's authority to grant? Would it be impossible to implement even if granted, etc.? -Is the contract provision(s) you are relying upon modified by more specific language in the provision or elsewhere in the contract? -Where rules and regulations are concerned, have they been posted and given to employees, are they reasonable and have they been fairly, consistently and equitably enforced? -What has been the outcome of other similarly situated cases? Does this information help or hurt your case? How? Once you have reviewed and analyzed all these considerations with respect to the union case, prepare a summary of what you think the employer's response will be and determine if you have a sound rebuttal for each of the points the employer could raise. FILING: Be sure to properly and timely complete the grievance form. This includes such items as: names; dates; signatures; clear and accurate statement of the complaint; contract clauses alleged to have been violated; and remedy requested. This is a checklist, not a magic wand. It highlights key points to consider in handling employee complaints. This task is time consuming and requires the application of a number of skills. There are no real short cuts. If you take them, an employer will usually find them at some stage in the grievance procedure or in arbitration. The result may be very damaging involving not only loss of a case that might have been won, but also expenditures of time, other resources and credibility that a union can ill afford. Handling Discipline and Discharge Cases: Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 28

In all likelihood, most of the grievances you handle will involve discipline or discharge. Since management is the party that took the action, (i.e., is the moving party) the BURDEN OF PROOF is on the employer to show that it has just cause for such action. This means that, in arbitration, management must go first in showing what evidence and testimony it has to support the action taken. A union then responds with the evidence and testimony it has in defense of the grievant and as rebuttal to the case presented by the employer. There are 7 commonly accepted tests for just cause. These are: 1. If a rule is alleged to have been violated, was that rule reasonable? 2. Was the grievant given adequate notice that the conduct complained about was improper? 3. Was the alleged offense sufficiently investigated? 4. Was the investigation fair? 5. Was the misconduct proved? 6. Did the employee receive equal treatment with all others who have committed a similar offense? If not, were there any mitigating circumstances? 7. Was the penalty appropriate for the offense committed? Refer back to the Checklist for Handling Complaints to remind yourself of the type of information you must collect to support a complaint in a discipline or discharge case. Remember to find out: who; what; when; where; why; and how. Collect all of the evidence and interview witnesses, then review and analyze these in relation to the 7 tests listed above. This will give you an idea of the strength of support for the union's case. Remember, you must also consider what evidence and testimony management may be able to present and assess your case accordingly. Contract Interpretation Cases: These cases involve disputes over the interpretation of contract language. Unlike discipline and discharge cases, the party that claims the contract language has been improperly interpreted has the burden to go forward in presenting its case. Critical to prevailing in a contract interpretation case can be: evidence obtained from the bargaining history of the parties (what have they done in the past, for how long, and what was the intent at the bargaining table); and have any past practices developed that have changed the meaning of that contract language. The tests for a binding past practice are that the practice must be: (1) unequivocal; (2) clearly enunciated and acted upon; and (3) readily ascertainable over a reasonable period of time as a fixed, and established practice accepted by both parties. Mutual acceptance may be tacit, however, an implied mutual agreement determined by inference from the circumstances. It is very important in contract interpretation cases that you obtain witnesses who were actually at the bargaining table when the disputed language was agreed to, and/or have direct knowledge that the language has been rolled over in successive contracts without dispute for a period of years, or of past practices that have changed the meaning of the disputed language. In such cases, the kinds of proof that can be critical to support either party's case may include: Copies of past contracts; Notes from bargaining sessions; -Other documentation that will prove how the language has actually been Implemented (e.g., other arbitration awards); -Employees with long service that can testify about how a contract provision has been implemented; -Whether the disputed language is clear and unambiguous on its face; Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 29

-is general language limited by more specific language in the same provision or elsewhere in the contract; -Are the disputed terms being interpreted in normal language or as they usually are in your business or is the interpretation strained.

The grievance procedure and practice in your organisation and present a brief report. COMPANY POLICY COMPANY .................. aims to resolve problems and grievances promptly and as close to the source as possible with graduated steps for further discussions and resolution at higher levels of authority as necessary. Statement of General Principles Complaints must be fully described by the person with the grievance The person(s) should be given the full details of the allegation(s) against them The person(s) against whom the grievance/complaint is made should have the opportunity and be given a reasonable time to put their side of the story before resolution is attempted Proceedings should be conducted honestly, fairly and without bias Proceedings should not be unduly delayed.

PROCEDURES The following is a four level process: The Employee attempts to resolve the complaint as close to the source as possible. This level is quite informal and verbal If the matter is not resolved The Employee notifies the Supervisor (in writing or otherwise) as to the substance of the grievance and states the remedy sought. Discussion should be held between employee and any other relevant party. This level will usually be informal, but either party may request written statements and agreements. This level should not exceed one week. If the matter is not resolved The Supervisor must refer the matter to the Manager (or Board of Directors if applicable). A grievance taken to this level must be in writing from the employee. The Supervisor will forward to the Manager any additional information thought relevant The Manager will provide a written response to the Employee The Manager also communicate with any other parties involved or deemed relevant. This level should not exceed one week following the next scheduled meeting. If the matter is not resolved The Employee will be advised of his/her rights to pursue the matter with external authorities if they so wish. Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 30

Join & get useful IGNOU MBA stuffs at http://www.ignousolvedmbaassignment.blogspot.com/ Page 31