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Module 5
Industrial
Relations
• Industrial relations: Significance, Objectives,
Approaches.
• Industrial Disputes- Causes, Forms, Preventive
Machinery.
• Collective Bargaining: Basic Concepts .
• Trade unions: Definition, Objectives, Functions
• Social Security in India, Employee welfare,
Grievance Handling and Discipline-
• Sources and forms of Grievances -Grievance
Procedure, Disciplinary Procedure.
Industrial Relations
Employee – Employer relations
in both organised and unorganised
sectors.
• J.T. Dunlop defines industrial
relations as “the complex
interrelations among managers,
workers and agencies of the
governments”.
Industrial Relations
Dale Yoder defines IR as “ a relationship
between management and employees or
among employees and their organizations,
that characterize and grow out of
employment”
Industrial
Relations
Employers
Associations Trade Unions
Employer
Employees
Judiciary,
Government
rules, policies
Customers,
Suppliers, traditions
within a country
 Character: To study the role of workers,
unions and employers.
Govt.,
Employer/Management
Employees,
Employee/Employer Unions,
Govt. bodies,
Labour court, etc.
Employer Associations
• Builders Association of India
• Indian Drug Manufacturers Association
• The Fertiliser Association of India
• Silk Association of India
• Indian Tea Association
• Employer’s Federation of India (EFI)
Methods
• Collective bargaining
• Workers participation
• Discipline procedures
• Union regulations, etc.
Aspects of IR
Co-operation
Conflict
Contents
Employment Conditions, Pay, Working Hours,
Leave, Health, Safety And Welfare Measures.
Objectives/Significance of IR
• Helps to maintain harmonious relationship between
employee, employer and the government
• Industrial peace is achieved
• Enhance Economic Status
• High productivity
• Reduce conflict
• To encourage and develop trade unions to improve the
workers collective strength.
• Higher morale
• To extend and maintain industrial democracy
• Fair benefits to the employees
• To improve workers strength to have a say in the
management and decision making
Scope of IR
1. Promotion of Healthy Employee-Management
Relation.
2. Maintaining Industrial Peace
3. Promotion of Industrial Democracy
Factors Affecting Industrial Relations
• Institutional Factors
• Economic Factors
• Social Factors
• Technological Factors
• Psychological Factors
• Political Factors
• Enterprise related Factors – Style of
Management prevailing in the organisations and
industry
• Global Factors – ILO, GATT, WTO
Pre – requisites of successful I.R. program
• Top management support.
• Existence of strong, well organized and democratic
employees unions.
• Existence of sound and organized employers union
• Spirit of collective bargaining and willingness to resort
to voluntary negotiations
Dimensions of I.R.
• Procurement – recruitment and selection of employees
• Development – training & development, career
planning, performance appraisal
• Compensation – pay compensation & fringe benefits.
• Integration – Motivation, industrial relations, grievance
handling, collective bargaining, workers participation in
management.
• Maintenance – Health & safety, communication,
Counseling.
Dimensions of I.R.
cont….
• Separation – Retirement, lay-off, discharge
• Welfare measures.
• Management of social security program.
• Maintenance of employee records.
• Undertaking studies in the field of HRM / IR.
• Public relations – govt., outside agencies.
Perspectives / Approaches to I.R.
Industrial conflicts are the results of several socio-economic,
psychological and political factors.
“An economist tries to interpret industrial conflict in terms
of impersonal markets forces and laws of supply &
demand.
To a politician, industrial conflict is a war of different
ideologies – perhaps a class-war.
To a psychologist, industrial conflict means the conflicting
interests, aspirations, goals, motives and perceptions of
different groups of individuals, operating within and
reacting to a given socio-economic and political
environment”.
Perspectives / Approaches to I.R.
1. Psychological Approach to I.R.
2. Sociological Approach
3. Human Relations Approach
4. Gandhian Approach
5. Giri Approach
6. Systems Approach
7. Unitary Perspective
8. Pluralistic Perspective
9. Marxist Perspective
Why so many approaches????????.
The problems posed in the field of IR cannot be solved
within the limits of a single discipline, and hence it is
bound to inter disciplinary in approach.
Any problem in industrial relations has to be approached
on a multi disciplinary basis, drawing from the
contributions of a number of disciplines.
1. Psychological Approach to I.R
I.R. deeply rooted in perception & attitude
The problems of IR have their origin due to difference in the
perceptions of the management, unions and the workers.
The conflicts between labour and management occur because
every group negatively perceives the behaviour of the
other
Even the honest intention of the other party is looked at with
suspicion.
Factors like the wages, working condition, benefits and other
Factors like motives such as need to gain prestige, power,
status, recognition, security etc also create differences.
2)Sociological approach to I.R.
• Industry is social world
• In includes Various individuals and groups
• Sociological factors like value system, customs, and
traditions affect the relations between labour and
management
• Problems like- urban congestion, shortage of affordable
dwelling units, inconvenient transportation system,
pollution, culture pollution have industrial impact
• Social change cannot be overlooked
3. Human Relations
Approach
• Individuals are motivated by a variety of social and
psychological factors and not just earnings
• Presence of informal groups – impact on the attitude and
performance of individuals
• Delicate
• Handling is radically different
• Physiological needs
• Safety and security needs
• Egoistic needs- higher order needs, self esteem
• Attempts need to be made to integrate the individual
objectives with orgnaisational objectives to avoid conflict in
industrial life
4. Gandhian Approach
IR are based on fundamental principles of truth
and non- violence and non possession
The worker should seek redressal of reasonable
demands through collective action
Gandhiji has accepted the workers have
“right to strike”
– but in peaceful & non – violent manner.
– only for reasonable demands
– avoid strike as far as possible
– Use strike as last resort
– avoid formation of union
4. Gandhian Approach
According to the Trusteeship theory of Gandhi
“Wealth belongs to society and not to the owners of an
enterprise, Owners are there to serve the interests of
society.
If they fail to pay minimum wages to workers, workers
should appeal to their conscience. If this does not
produce results, they should resort to non violent non
cooperation(Satyagraha)
5. Giri Approach
By V V Giri- Former President of India
• Disputes should be settled by collective
bargaining and joint negotiations.
• Outside interferences must be avoided.
• Trade Unions should use voluntary
arbitration in place of compulsory
adjudication to resolve disputes
• There should be a bi partite machinery in
every industry and in every unit of the
industry with active encouragement of
government for resolving disputes.
6. System Approach
John Dunlop
Focuses on participants in the process, environmental
forces and the output
According to Dunlop industrial relations system
consists of three agents –
 Union
 Management
 Government
Industrial relations is a social sub system subject to three
environmental constraints- the markets, distribution of
power in society and technology.
In effect - Industrial relations is the system which produces
the rules of the workplace. Such rules are the product of
interaction between three key “actors” – workers/unions,
employers and associated organizations and government
DUNLOPS MODEL
7. Unitary Perspective
• The organization is perceived as an integrated and
harmonious system, viewed as one happy family
• Members of the organization share the same
objectives, interests and purposes; thus working
together, hand-in-hand, towards the shared mutual
goals
• Unitarism has A paternalistic approach where it
demands loyalty of all employees.
8. Pluralistic-Perspective
Organization is perceived as being made up of powerful and
divergent sub-groups - management and trade unions.
• This approach sees conflicts of interest and
disagreements between managers and workers over the
distribution of profits as normal and inescapable.
• The role of management would lean less towards
enforcing and controlling and more toward persuasion
and co-ordination
• Trade unions are deemed as legitimate
representatives of employees
• Conflict is dealt by collective bargaining
9. Marxist Perspective
• This perspective focuses on the fundamental
division of interest between capital and labor,
and sees workplace relations against this
background.
• It is concerned with the structure and nature
of society and assumes that the conflict in
employment relationship is reflective of the
structure of the society.
• Conflict is therefore seen as inevitable and
trade unions are a natural response of
workers to their exploitation by capitalist.
DEFINITION BY LESTER
“Industrial relations involve attempts at
arriving at solutions between the conflicting
objectives and values; between the profit motive
and social gain; between discipline and
freedom, between authority and industrial
democracy; between bargaining and co-
operation; and between conflicting interests of
the individual, the group and the community”.
Industrial
Dispute
Strike at Tata Motors' Sanand plant( annual production
capacity of 2 lakh units )
HISTORY OF THE DISPUTE
• Dec 16,’15 Tata Motors suspends two workers at Sanand plant for
indiscipline
• Feb 22,’16 422 Workers protest demanding enquiry re-instatement of
those suspended
• Feb 22,’16 Company suspends another 26 workers
• Feb 25,‘16 Workers, management meet at assistant labour commissioner's
office, talks fail
• Mar 12,’16 22 Trade Unions in state extend support to workers
• Mar 14,’16 State government expedites work on recognising union
• Mar 17,’16 Bharatiya Kamdar Ekta Sangh Sanand (BKSS)-workers union is
recognised by labour dept
• Mar 22,’16 Workers and Tata Motors reach agreement over issues
• the company has agreed to take back 13
suspended workers from the group of 26
• The remaining 13 workers would continue to get
an allowance (about 75 per cent of their salary)
during the time an independent committee
conducted its enquiry into the suspension.
• The committee is expected to submit its report
within four-six months.
• As for the two workers who were suspended in
December, the enquiry is complete and a decision
would be taken
Industrial Dispute
According to Section 2(K) of the Industrial Disputes Act,
1947,
‘Industrial dispute’ means “any dispute or difference
between –
i. employers and employers,
ii. employers and workmen, or
iii. workmen and workmen,
which is connected with
(a)the employment or non-employment,
(b) the terms of employment, or
(c) the conditions of labour of any person.
Individual workman cannot raise an industrial dispute
Forms OF UNREST/DISPUTES
STRIKES:
Quitting work by a group of workers for
the purpose of bringing pressure on
their employer to accept their
demands.
LOCK-OUTS
• an act on the part of the employers to close down the
place of work until the workers agree to resume the
work on the terms and conditions specified by the
employers.
GHERAO
• ‘Gherao’ means to surround
• Group of workers initiate collective action aimed
at preventing members of the management from
leaving the office. This can happen outside the
premises too
PICKETING and BOYCOTT
• While picketing workers carry/display signs ,banners and placards( In
connection with dispute), prevent others from entering the place of work and
persuade others to join the strike
• Boycott aims at disrupting the normal functioning of an enterprise, Through
forceful and negative behavioral acts, strikers prevent others not to cooperate
with employer
Causes Of Industrial Disputes
The causes of industrial disputes can be broadly classified
into two categories: economic and non-economic causes.
Economic
Non
Economic
Wages, bonus, Allowances,
Conditions of work, working
hours, leave and holidays without
pay, unjust layoffs and
retrenchment
Victimization of workers, ill
treatment by staff members,
sympathetic strikes,
political factors and
indiscipline
Method of settling disputes
Collective
Bargaining
Code of
Discipline
Grievance
Procedure
Dispute
Settlement
Consultative
Machinery
Arbitration
Conciliation
Adjudication
Collective Bargaining:
• Collective bargaining helps for settlement of
issues and prevention of industrial disputes. It
occurs when representatives of a labor union
meet management representatives to determine
employees wages and benefits, to create or
revise work rules and to resolve disputes or
violations of the labor contract.
Code of Discipline
• The code of discipline defines duties and
responsibilities of employers and workers.
• The objectives of the code are:
1. To ensure that employers and employees recognize
each others rights and obligations.
2. To promote consecutive co-operation between parties
concerned at all levels.
3. To eliminate all forms of coercion, intimidation and
violence in IR.
4. To avoid work stoppages.
5. To facilitate the growth of trade unions.
6. To maintain discipline in the industry.
Consultative Machinery
• Consultative machinery is set by the government to
resolve conflicts. The main function is to bring the
parties together for mutual settlement of differences
in the spirit of co-operation and goodwill.
• A consultative machinery operates at plant ,
industry , state and national levels
Conciliation (mediation)
• The process by which representatives of workers
and employers are brought together before a third
party with a view to persuading them to arrive at an
agreement by mutual discussion between them.
• The conciliator facilitate disputing parties to reach
at a decision.
Grievance procedure
• A grievance procedure is a formal process which is
preliminary to arbitration, which enables the parties
involved in disputes to resolve their differences in
a peaceful and orderly manner.
Arbitration
• Process in which the conflicting parties agree
to refer their dispute to a neutral third party
known as ‘Arbitrator’.
• Arbitrator gives his judgment on a dispute
Machinery for settlement of Industrial
Disputes
There are two types of arbitration:
• Voluntary Arbitration: In voluntary arbitration the arbitrator is
appointed by both the parties through mutual consent and the
arbitrator acts only when the dispute is referred to him.
• Compulsory Arbitration: Implies that the parties are required to
refer the dispute to the arbitrator whether they like him or not.
Usually, when the parties fail to arrive at a settlement voluntarily,
or when there is some other strong reason, the appropriate
government can force the parties to refer the dispute to an
arbitrator.
Machinery for settlement of Industrial
Disputes
• Advantages of Arbitration:
• It is established by the parties themselves and therefore
both parties have good faith in the arbitration process.
• The process in informal and flexible in nature.
• It is based on mutual consent of the parties and therefore
helps in building healthy Industrial Relations.
• Disadvantages:
• Delay often occurs in settlement of disputes.
• Arbitration is an expensive procedure and the expenses are
to be shared by the labour and the management.
• Judgement can become arbitrary when the arbitrator is
incompetent or biased.
Adjudication
• Adjudication consists of settling disputes through
intervention by the third party appointed by the
government.
• The government can refer the dispute to adjudication with or
without the consent of the disputing parties.
• When the dispute is referred to adjudication with the
consent of the disputing parties- ‘voluntary adjudication.’
• When the government refers the dispute to adjudication
without consulting the concerned parties- ‘compulsory
adjudication.
Adjudication
Adjudication means a mandatory settlement
of an Industrial dispute by a labour court or
a tribunal.
• Labour court
• Industrial Tribunal
• National Tribunal
Collective Bargaining
Collective Bargaining
“Collective Bargaining is a process in which the
representatives of a labour organization & the
representatives of business organization meet and
attempt to negotiate a contract or agreement,
which specifies the nature of employee-employer
union relationship”.
– FLIPPO
• Process involving discussions and negotiations
• ‘Collective’ – group
• 'Bargaining' – proposals and counter proposals
• To reconcile their conflicting interests
• Is a flexible approach
Definition
• I.L.O. workers manual defines collective bargaining
as, “negotiation about working conditions and
terms of employment between an employer, a
group of employers or one or more employer’s
organizations, on the one hand, and one or more
representative workers organisation on the other
with a view of reaching an agreement.
Objectives Of Collective Bargaining
• To protect the interest of workers by collective action
• To achieve industrial democracy
• To increase the strength of union and management.
• Secure a prompt and fair redressal of grievances
• Avoid interruptions of work which follows strikes, go-
slow tactics etc.
• Promote stability and prosperity of industry
Importance To Employees
• Develops a sense of self respect and responsibility among the
employees.
• Increases strength of the workforce, thereby, increasing their
bargaining capacity
• Increases the morale and productivity of employees.
• It restricts management’s freedom for arbitrary action against
the employees.
• 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.
Importance To Employers
• Easier for the management to resolve issues at the
bargaining level rather than taking up complaints
of individual workers.
• Promote a sense of job security among employees
and thereby tends to reduce the cost of labor
turnover to management.
• 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 -economic and social
development .
• The discrimination and exploitation of workers is
constantly being checked.
Pre-Requisites for Successful Collective
Bargaining
• A favorable political climate
• Freedom of association
• Willingness to give and take
• Fair labor practices
• Problem solving attitude
• Continuous dialogue
• Availability of data
• Strong independent and well organised unions
• Recognition of the union as the bargaining agent
• Mutual trust and good faith
1. Distributive/ Conjunctive Bargaining
• Involves zero-sum negotiations, in other words, one
side wins and the other loses.
• Both parties try to maximize their respective gains.
They try to settle economic issues such as wages,
benefits, bonus, etc
2. Cooperative /Integrative Bargaining
Integrative bargaining is similar to
problem solving sessions in which both
sides are trying to reach a mutually
beneficial alternative, ie..A win-win
situation
3.Productivity Bargaining
The process of reaching an agreement
(productivity agreement) through collective
bargaining whereby the employees of an
organization agree to changes which are intended
to improve productivity in return for an increase
in pay or other benefits
4. Composite Bargaining:
– Workers believed that productivity bargaining
agreements increased their workloads.
Rationalization, introduction of new technology,
tight productivity norms have added to this burden
– In this method, labor bargains for wages as usual,
but goes a step further demanding equity in
matters relating to work norms, employment
levels, manning standards, environmental hazards
, sub-contracting clauses etc.
5.Concessionary Bargaining
Quite opposite to the other forms of bargaining,
in concessionary bargaining, the objective is to
giving back to management, some of what it
has gained in previous bargaining.
Management and Unions Power in
Collective Bargaining
Bargaining Power
The power of labor and management to achieve
their goals through economic, social, or
political influence.
Union Bargaining Power
• Strikes, pickets, and boycotts
Management Bargaining Power
• Hiring replacement workers
• Continuing operations staffed by
management
• Locking out employees
The Collective Bargaining Process
Identify
the
Problem
Prepare for
negotiations
Discuss
Propose
Bargain
Settlement/
Agreement
Trade Union
TU is a “continuous association of wage earners for the
purpose of maintaining or improving the conditions
of their working lives”.
V.V.Giri : TU is such an “organisation which is created
voluntarily on the basis of collective strength to
secure the interests of workers”.
G.D.H. Cole: TU means “ An association of workers in
one or more professions – an association carried on
mainly for the purpose of protecting and advancing
the members’ economic interest in connection with
their daily work.
Section 2(h) of the Trade Unions Act, 1926 has
defined a Trade Union as
“Any combination, whether temporary or
permanent, formed primarily for the
purpose of regulating the relations between
• workmen and employers,
• workmen and workmen,
• employers and employers,
or for imposing restrictive conditions on the
conduct of any trade or business, and includes
any federation of two or more trade unions.”
Objectives of Trade Union
• To ensure economic security ie Permanent employment
with good salary and benefits
• To secure better working conditions for the workers.
• To secure bonus for the employees from the profit of the
concern,
• To resist schemes of the management which reduce
employment, e.g., rationalisation and automation.
• To secure welfare of employees through group schemes
which give benefit to every employee.
• To protect the interests of employees by taking active
participation in the management.
• To secure social welfare of the employees.
• To secure organisational stability, growth, and leadership.
FUNCTIONS OF TRADE UNIONS
• Militant or Protective or Intra-mural
function
• Fraternal or extra mural function
• Social Function
• Political Function
• Ancillary functions
• Includes protecting the workers interests
– Hike in wages
– Providing more benefits
– Job security
Through collective bargaining and direct action such as
strikes, gheraos etc
 Includes providing financial and non financial
assistance to workers during strikes, lock outs,
 Extension of medical facilities during sickness and
causalities.
 Provisions for education, recreation, housing
facilties
 Provision for social and religious benefits
• Includes social service activities
• Discharging social responsibilities
 Includes affiliating a union to a political party
 Helping political party in enrolling members,
collecting donations, canvassing during election
period
 Seeking help of political parties during strikes and
lock-outs
5. ANCILLARY FUCTIONS
• Communication: of activities, programs, decisions,
achievements to its members through publication of
news letters or magazines. (Indian railway worker –
magazine of National Federation of Indian Railway
worker
• Welfare activities: includes acquiring of house sites,
construction of houses, establishment of co-opeartive
housing societies, cooperative credit societies,
organizing training activities
• Educational facilities to its members and their family
members
• Research: collect datas and information for collective
bargaining, preparing of notes for union officials, for
court cases.
– All India Railwaymen’s federation established research cell
to conduct surveys on job satisfaction,morale, employee
problems, prepare charter of demands etc..
Types of TU
• Craft Unions – private bus driver’s union
• Industrial Union – union of railway employees
• General Union – Jamshedpur labour union
• Federation – federation of Indian railways
• Confederation – Association of federations
Problems of Trade Unions
Multiplicity of union
and union Rivalry
Poor Financial
Position
Small Size Unions
Political and
outside leadership
Low
Membership
Victimization
Inactive
Functioning
Category wise
unions
 human resource management
Grievance
A grievance is a sign of the employees’ discontent
with job and its nature. It is caused due to the
difference between employee expectation and
management practice.
• Beach defines a grievance as, “any
dissatisfaction or feeling of injustice in
connection with one’s employment situation
that is brought to the notice of the
management.”
Areas of Grievances
1. Grievances resulting from working conditions
• Poor physical conditions of work place.
• Lack of proper tools, machines and
equipments.
• Frequent changes in schedules or procedures.
• Rigid production standards
• Improper matching of the worker with the job.
• Poor relationship with the supervisor
Areas of Grievances
2. Grievances resulting from management policy
and practices
Poor payment
Lack of job security
Inadequate benefits such as
medical benefits, leave
travel concession etc.
Leave facilities
Seniority
Transfer
Promotion
Lack of career planning and
development
Hostility towards labour
union
Defective leadership style
Communication gap
Areas of Grievances
3. Grievances resulting from alleged violations of
• Violation of collective bargaining agreement
• Violation of Central/State laws
• Violation of common rules
4. Grievances resulting from personal
maladjustment
• Over ambition
• Excessive self-esteem
Methods of Identifying Grievances
• Observation
• Gripe boxes- complaint boxes in the
organisation
• Open door policy
• Exit interview
• Opinion survey
• Grievance procedure
Forms of Grievances
1. Factual Grievance: Based on actual facts-
promotion due but not provided.
2. Imaginary Grievances: Not based on valid
reasons, but based on wrong information.
3. Disguised Grievances: No particular
reasons, but due to pressure from external
sources
GRIEVANCE PROCEDURE
• Most significant channel through which dissatisfaction of
employees can be communicated to management.
• A grievance procedure is an ordered multistep process
that the employer and employee jointly uses to redress
grievances and resolve disputes that arises.
Definition
“A formal procedure which attempts to resolve the
differences of parties involved, in an orderly, peaceful
and expeditious manner, may be defined as grievance
procedure or grievance redressal machinery.
The steps in this machinery vary from organisation to
organisation.
Essential Requirements Of Grievance
Procedure
1. Conformity With Statutory Provisions
2. Un-ambiguity
3. Simplicity
4. Promptness
5. Training
6. Implement and Follow Up
Identifying grievances
Define correctly
Collect data
Analyse and solve
Prompt redressal
Implement and follow up
Steps in Grievance procedure
Model grievance procedure
Aggrieved Employee
Foreman
Department Representative
Section Head Departmental Representative
Grievance Committee
Manager
Committee of union and management
Representative
Arbitration
Step
1
Company
Representative
Union/Employee
Representative
(Answer to be given
within 48 hours)
(decision in 3 days)
(decision in 7 days)
N S
N S
N S
Supervisor
Conveys Orally
N S
Step
5
Step
4
Step
3
Step
2
Step
6 N S
The Model grievance procedure
• The Model grievance procedure suggested by the National
Commission of Labour involves six successive time bound
steps each leading to the next, in case of dissatisfaction.
• The aggrieved worker in the first instance will approach the
foreman and tell him of his grievances orally.
• If not satisfied with this redressal, he can approach the
supervisor. The Supervisor has to provide an answer within
48 hours.
• If not being acceptable to the worker, the worker goes to the
next step. At this stage, the worker either alone or
accompanied with his departmental representative
approaches the Head of the Department who has to give an
answer within three days.
The Model grievance procedure
• If the Department fails to give answer or if the worker is
not satisfied with his answer, the worker may appeal to
the Grievance Committee, consisting of the
representatives of the employer and the employees.
• The recommendation of this Committee should be
communicated to the Manager with in seven days from
the date of the grievance reaching it.
• Unanimous decisions, if any, of the Committee shall be
implemented by the Management.
• If there is no unanimity, the views of the members of the
Committee shall be placed before the Manager for
decision. The Manager has to take a decision and the
worker within three days.
The Model grievance procedure
• The worker can make an appeal against the
manager’s decision and such an appeal has to
be decided within a week.
• A Union official may accompany the worker to
the manager for discussion .
• If no decision is arrived at this stage, both the
union and management may refer the
grievance to voluntary arbitration within a
week of receipt of the management’s decision.
Discipline
A force that prompts individuals or groups to
observe the rules and regulations and
procedures which are deemed to be
necessary for the effective functioning of an
organisation.
Discipline regulates the behaviour of
employees in an organisation as law
regulates the behaviour of people in society.
It is always viewed with fear and suspicion.
According to webster’s dictionary,
Discipline means:
• A training that corrects, moulds, strengthens or
prospects.
• A control gained by enforcing obedience.
• It is punishment or chastisement/warning
It is the force that prompts individuals or group of
individuals to observe rules & regulations which are
deemed to be necessary for attainment of Goals´
Dr. Spriegel
Forms of Discipline
Sub title
•Employee supports
discipline
•Adhere to the rules
•Employee enjoys
greater freedom
•Greater degree of
self expression
•Strive to achieve
group objectives
Constructive/
Self discipline
•Employee does not
support discipline
•No adherence to rules
•Restrain on freedom
•Penality against
dis-obeying of rules
Corrective / Punitive/
autocratic approach
Positive Discipline Negative Discipline
achieved through rewards & effective leadership
Objectives of Discipline
To obtain willing acceptance of rules and
regulations
To develop among the employees a spirit of
tolerance and desire to make adjustments
To give and seek direction and responsibility
To create an atmosphere of respect for human
personality and human relations
To increase the working efficiency and morale
of employees
Red hot Stove Rule
Coined by Douglas Mc Gregor
Whether major or minor mistake, you will get
punishment
• The burn is immediate
• You had a warning
• The effect is consistent
• The effect is impersonal
Misconduct/Indiscipline
Act which is prejudicial to the interest of the
organisation.
Violation of the rules and regulation
Causes of indiscipline
• Ineffective leadership
• lack of Promotional opportunities
• Uninteresting works
• Defective communication system
• Drunkenness & family problems
• Excessive work pressure
• Unfair management practices.
• Non Uniform disciplinary actions
• Inadequate attention to personal problems
• Victimization
• Divide and rule policy
Procedure of disciplinary action
Principle of natural justice
• No man shall be judge in his own cause (rule against bias)
• Right to be heard-(right to a fair hearing)
• Reasoned decision
a) Preliminary Investigation
b) Issuing a letter of charge
c) Consideration of explanation
d) Show- cause notice – issued by manager ,enquiry notice
e) Holding a full fledged enquiry-principle of natural justice
f) Recording of findings by the enquiry officer
g) Making a final order of punishment-
h) Communication of punishment
If employee not satisfied with the enquiry he may be
given a chance to make an appeal to the Labour
Court, National Tribunal
Intervention by a tribunal
Only under following circumstances the tribunal will
consider the case
 When there is want of good faith
 When there is victimization or Unfair Labour
practices
 Violation of principle of natural justice
 When the findings are baseless and perverse
Types of Punishment
a) Oral warning – minor mistakes, should be used sparingly.
b) Written warnings –first formal state of progressive
discipline-”pink slips”
c) Loss of privileges and fine
d) Punitive suspension
e) Withholding of promotions, increments etc.
f) Demotion
g) Discharge- Termination of employees by giving suitable
compensation
h) Dismissal- Severe than discharge- termination without
any consideration, immediate termination without notice
Employee welfare/ Labour Welfare
• A comprehensive term including various services,
benefits and facilities offered to the employees by
the employer.
Labor welfare work is the work for improving the
health, safety and general well being and the
industrial efficiency of the workers beyond the
minimum standard laid down by labour
legislation.
Welfare measures may be both statutory and
voluntary
Agencies for welfare work
• Central Government – through various acts covering
safety, health and welfare of workers – The Factories Act,
1948, Mines Act,1952, Shipping Act 1948, Plantation
Labour Act 1951, Motor Transport Workers Act 1961,
Employee State Insurance Act 1948
• State Government:
• Employers
• Trade Unions
• Other Agencies- Social service societies and associations
Types Of Welfare Facilities
Broadly classified into two categories
INTRAMURAL- within the
establishment
EXTRAMURAL- undertaken
outside the establishment
•Drinking Water
•Toilets
•Crèches
•Washing And Bathing Facilities
•Rest Shelters
•Uniforms And Protective
Clothing
•Recreation Facilities
•Canteens
•Subsidized Food
•Medical Aid
•Housing
•Educational Facilities
•Maternity benefits
•Transportation
•Sports facilities
•Leave travel
•Vocational training
•Holiday Homes
•Cooperative stores
•Fair price shops
•Social insurance
Labour welfare officer
• As per the Factories act of 1948, Plantation
Labour Act 1951 and the Mines Act 1951-
provide for the appointment of Labour welfare
officer , if the number of workers employed
exceeds 500 (300 as per the plantation act).
Objectives:
• To eliiminate the malpractices in the
recruitment of labour
• Improve labour administration in factories
• Serve as laison with the state labor
commissioner
Duties and responsibilities of Labour
welfare officer
• Advisory- give advises and suggestions for the
formulation of company labour policies, promote
welfare schemes etc
• Service oriented
• Supervisory- welfare , health and safety programmes
• Functional- oversee the implementation of labour
laws for the benefit of employees
• Policing: forward workers grievance to management,
influence IR climate when dispute arises
• Mediation- to build harmony between labour and
management, secure speedy redressal of grievances,
resolving troubling issues peacefully
Social Security
• It is the protection given by the society to its
members against contingencies of modern life such
as sickness, unemployment, old age, invalidity,
industrial accidents.
• Aim is to protect people of small means from risks
which impair a persons ability to support himself
and his family.
• Security measures are generally specified by law
• Offers some kind to cash payment to individuals to
replace at least a part of lost income that had
occurred due to some mishaps
Social Security
• Social Security is ‘ an attack on the five
giants that affect workers – wants, disease,
ignorance, squalor and idleness.
Various risks
• Sickness
• Invalidity
• Maternity
• Employment injury
• Unemployment
• Old age
• Death
• Emergency expenses
Objectives of Social Security
Compensation: Offer financial help in a state of
physical distress- protection from double calamity
Restoration: Enable the worker to recover form
the shocks
Prevention: Designed to avoid the loss of
productive capacity due to risks and to ensure
material, intellectual and moral well being of the
community
Types of Social Security Benefits
1. Social Insurance:
• Schemes are finance mainly through contributions
from employer, worker and other beneficiaries.
• Most of these schemes are compulsorily
established by the law.
• Benefits are linked to the contributions of insured
persons
Primary purpose is to ensure minimum standard of
living to the beneficiaries during the period of
partial /total loss of income . PF, Group Insurance
Types of Social Security Benefits
2. Social Assistance:
• Benefits are offered to persons as small means by
the government out of its general revenues to
meet the minimum needs of individuals
• Workers and employers do not contribute to such
benefits in any manner.
Eg:
Old age pension, widow pension
Social Security Schemes in India
• Medical care
• Sickness benefit in cash
• Old age pension or retirement benefits
• Invalidity pension
• Maternity benefit
• Accident benefit
• Survivors benefit
The Workmen’s Compensation Act, 1923
Coverage: Covers all workers employed in factories, mines,
plantations, transportation, construction, railway, ship etc.
It does not apply to casual workers, workers covered under
ESI act and members of armed forces
Administration: commissions appointed by various state
governments.
Benefits:
Act specifies three conditions for claiming benefits from
employer
1. There must be an injury
2. It should be caused in an accident
3. It should be caused during the course of employment
Occupational disease compensation also included
The Workmen’s Compensation Act, 1923
Compensation depend on wages, age and type of injury,
temporary partial disablement, temporary total
disablement, permanent disability, permanent total
disability.
Employer not liable to pay compensation in case
1. when the injury does not lead to partial/total
disablement for a period exceeding 3 days
2. When the injury not resulting in death is caused by the
fault of the worker.
The Employees State Insurance Act,1948
• It provides medical help and unemployment
insurance to industrial workers during their
illness
• Objective – offer social insurance to workers in
respect of three contingencies- sickness,
employment injury and child birth
• Coverage: applicable to all factories other than
seasonal factories running with power and
employing 20 or more persons, and wage not
exceeding 15000/- pm
• Administered by ESIC
The Employees State Insurance Act,1948
• Contribution: ESI Contribution comprising of employers' share
4.75% plus employees' share of 1.75%
Benefits:
• Sickness benefit: about the half the wages up to 90 days sickness.
• Maternity benefit:
• Disablement benefit
• Dependents benefit
• Funeral benefit
The Maternity Benefits Act,1961
Provides for payment of maternity benefit to women
workers on certain conditions
Coverage: Applicable to all establishments not covers
under the ESI Act of 1948
Benefits:
• Maternity leave upto 12 weeks
• With full wages
• The employee should work for at least 100 days in 12
months immediately preceding the day of expected
delivery.
The Employees Provident Funds and
Miscellaneous provisions Act, 1952
It offers retirement benefits to the workers in the
form of PF, pension, and deposit linked insurance
Coverage: Applicable to factories mentioned in
schedule 1, where 20 or more persona are
employed
Act does not apply to cooperative societies- with
less than 50 employee and new establishment for
3 years from date of commencement
The Employees Provident Funds and
Miscellaneous provisions Act, 1952
Benefits of the Act:
Provident fund Scheme : Contribution form both employee
and employer every month. Premature withdrawals and
loans and advances can be obtained
Family pension scheme: when empleyee dies while in
service, pension is paid to his widow/children. In the new
scheme after the retirement pension is payable to
employee instead of PF.
Deposit linked insurance scheme: here the legal heir or
nominee of the deceased employee gets the amount equal
to the average balance in his PF during the preceeding one
year subject to a maximum of Rs. 3500. Employer and the
government makes the contributions
Payment Of Gratuity Act, 1961
Provides for a scheme of compulsory payment of
gratuity to employees engaged in factories, mines,
oil fields, plantations, ports, railways, shops or
other establishments
Eligibility: Employee other than apprentice with
Continuous service for 5 years or more
Payable at:
• Superannuation or retirement
• Resignation/retrenchment
• On death or disablement due to disease or
accident
Payment Of Gratuity Act, 1961
In case of death of employee, gratuity is paid to the
nominee, if no nominee it will be given to the
legal heirs.
Calculation
15 days wages based on the rate of wages last
drawn x no. of years worked
Should not exceed 3,50,000/-
Administration:
Both central and state Govt.
Officers appointed by the appropriate govt.
Group life Insurance
Provides insurance to several employees working under
one employer as long as they remain with the employer.
Employer enters into contract with the insurance
company on behalf of all employees covered therein
Premium is paid by employee and employer jointly
It is paid at a flat rate without considering the age or salary
of the employee
Premium is low, so it is highly attractive to salaried people
in the low income category

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human resource management

  • 2. • Industrial relations: Significance, Objectives, Approaches. • Industrial Disputes- Causes, Forms, Preventive Machinery. • Collective Bargaining: Basic Concepts . • Trade unions: Definition, Objectives, Functions • Social Security in India, Employee welfare, Grievance Handling and Discipline- • Sources and forms of Grievances -Grievance Procedure, Disciplinary Procedure.
  • 3. Industrial Relations Employee – Employer relations in both organised and unorganised sectors. • J.T. Dunlop defines industrial relations as “the complex interrelations among managers, workers and agencies of the governments”.
  • 4. Industrial Relations Dale Yoder defines IR as “ a relationship between management and employees or among employees and their organizations, that characterize and grow out of employment”
  • 6.  Character: To study the role of workers, unions and employers.
  • 8. Employer Associations • Builders Association of India • Indian Drug Manufacturers Association • The Fertiliser Association of India • Silk Association of India • Indian Tea Association • Employer’s Federation of India (EFI)
  • 9. Methods • Collective bargaining • Workers participation • Discipline procedures • Union regulations, etc.
  • 11. Contents Employment Conditions, Pay, Working Hours, Leave, Health, Safety And Welfare Measures.
  • 12. Objectives/Significance of IR • Helps to maintain harmonious relationship between employee, employer and the government • Industrial peace is achieved • Enhance Economic Status • High productivity • Reduce conflict • To encourage and develop trade unions to improve the workers collective strength. • Higher morale • To extend and maintain industrial democracy • Fair benefits to the employees • To improve workers strength to have a say in the management and decision making
  • 13. Scope of IR 1. Promotion of Healthy Employee-Management Relation. 2. Maintaining Industrial Peace 3. Promotion of Industrial Democracy
  • 14. Factors Affecting Industrial Relations • Institutional Factors • Economic Factors • Social Factors • Technological Factors • Psychological Factors • Political Factors • Enterprise related Factors – Style of Management prevailing in the organisations and industry • Global Factors – ILO, GATT, WTO
  • 15. Pre – requisites of successful I.R. program • Top management support. • Existence of strong, well organized and democratic employees unions. • Existence of sound and organized employers union • Spirit of collective bargaining and willingness to resort to voluntary negotiations
  • 16. Dimensions of I.R. • Procurement – recruitment and selection of employees • Development – training & development, career planning, performance appraisal • Compensation – pay compensation & fringe benefits. • Integration – Motivation, industrial relations, grievance handling, collective bargaining, workers participation in management. • Maintenance – Health & safety, communication, Counseling.
  • 17. Dimensions of I.R. cont…. • Separation – Retirement, lay-off, discharge • Welfare measures. • Management of social security program. • Maintenance of employee records. • Undertaking studies in the field of HRM / IR. • Public relations – govt., outside agencies.
  • 18. Perspectives / Approaches to I.R. Industrial conflicts are the results of several socio-economic, psychological and political factors. “An economist tries to interpret industrial conflict in terms of impersonal markets forces and laws of supply & demand. To a politician, industrial conflict is a war of different ideologies – perhaps a class-war. To a psychologist, industrial conflict means the conflicting interests, aspirations, goals, motives and perceptions of different groups of individuals, operating within and reacting to a given socio-economic and political environment”.
  • 19. Perspectives / Approaches to I.R. 1. Psychological Approach to I.R. 2. Sociological Approach 3. Human Relations Approach 4. Gandhian Approach 5. Giri Approach 6. Systems Approach 7. Unitary Perspective 8. Pluralistic Perspective 9. Marxist Perspective
  • 20. Why so many approaches????????. The problems posed in the field of IR cannot be solved within the limits of a single discipline, and hence it is bound to inter disciplinary in approach. Any problem in industrial relations has to be approached on a multi disciplinary basis, drawing from the contributions of a number of disciplines.
  • 21. 1. Psychological Approach to I.R I.R. deeply rooted in perception & attitude The problems of IR have their origin due to difference in the perceptions of the management, unions and the workers. The conflicts between labour and management occur because every group negatively perceives the behaviour of the other Even the honest intention of the other party is looked at with suspicion. Factors like the wages, working condition, benefits and other Factors like motives such as need to gain prestige, power, status, recognition, security etc also create differences.
  • 22. 2)Sociological approach to I.R. • Industry is social world • In includes Various individuals and groups • Sociological factors like value system, customs, and traditions affect the relations between labour and management • Problems like- urban congestion, shortage of affordable dwelling units, inconvenient transportation system, pollution, culture pollution have industrial impact • Social change cannot be overlooked
  • 23. 3. Human Relations Approach • Individuals are motivated by a variety of social and psychological factors and not just earnings • Presence of informal groups – impact on the attitude and performance of individuals • Delicate • Handling is radically different • Physiological needs • Safety and security needs • Egoistic needs- higher order needs, self esteem • Attempts need to be made to integrate the individual objectives with orgnaisational objectives to avoid conflict in industrial life
  • 24. 4. Gandhian Approach IR are based on fundamental principles of truth and non- violence and non possession The worker should seek redressal of reasonable demands through collective action Gandhiji has accepted the workers have “right to strike” – but in peaceful & non – violent manner. – only for reasonable demands – avoid strike as far as possible – Use strike as last resort – avoid formation of union
  • 25. 4. Gandhian Approach According to the Trusteeship theory of Gandhi “Wealth belongs to society and not to the owners of an enterprise, Owners are there to serve the interests of society. If they fail to pay minimum wages to workers, workers should appeal to their conscience. If this does not produce results, they should resort to non violent non cooperation(Satyagraha)
  • 26. 5. Giri Approach By V V Giri- Former President of India • Disputes should be settled by collective bargaining and joint negotiations. • Outside interferences must be avoided. • Trade Unions should use voluntary arbitration in place of compulsory adjudication to resolve disputes • There should be a bi partite machinery in every industry and in every unit of the industry with active encouragement of government for resolving disputes.
  • 27. 6. System Approach John Dunlop Focuses on participants in the process, environmental forces and the output According to Dunlop industrial relations system consists of three agents –  Union  Management  Government
  • 28. Industrial relations is a social sub system subject to three environmental constraints- the markets, distribution of power in society and technology. In effect - Industrial relations is the system which produces the rules of the workplace. Such rules are the product of interaction between three key “actors” – workers/unions, employers and associated organizations and government DUNLOPS MODEL
  • 29. 7. Unitary Perspective • The organization is perceived as an integrated and harmonious system, viewed as one happy family • Members of the organization share the same objectives, interests and purposes; thus working together, hand-in-hand, towards the shared mutual goals • Unitarism has A paternalistic approach where it demands loyalty of all employees.
  • 30. 8. Pluralistic-Perspective Organization is perceived as being made up of powerful and divergent sub-groups - management and trade unions. • This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable. • The role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination • Trade unions are deemed as legitimate representatives of employees • Conflict is dealt by collective bargaining
  • 31. 9. Marxist Perspective • This perspective focuses on the fundamental division of interest between capital and labor, and sees workplace relations against this background. • It is concerned with the structure and nature of society and assumes that the conflict in employment relationship is reflective of the structure of the society. • Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capitalist.
  • 32. DEFINITION BY LESTER “Industrial relations involve attempts at arriving at solutions between the conflicting objectives and values; between the profit motive and social gain; between discipline and freedom, between authority and industrial democracy; between bargaining and co- operation; and between conflicting interests of the individual, the group and the community”.
  • 34. Strike at Tata Motors' Sanand plant( annual production capacity of 2 lakh units ) HISTORY OF THE DISPUTE • Dec 16,’15 Tata Motors suspends two workers at Sanand plant for indiscipline • Feb 22,’16 422 Workers protest demanding enquiry re-instatement of those suspended • Feb 22,’16 Company suspends another 26 workers • Feb 25,‘16 Workers, management meet at assistant labour commissioner's office, talks fail • Mar 12,’16 22 Trade Unions in state extend support to workers • Mar 14,’16 State government expedites work on recognising union • Mar 17,’16 Bharatiya Kamdar Ekta Sangh Sanand (BKSS)-workers union is recognised by labour dept • Mar 22,’16 Workers and Tata Motors reach agreement over issues
  • 35. • the company has agreed to take back 13 suspended workers from the group of 26 • The remaining 13 workers would continue to get an allowance (about 75 per cent of their salary) during the time an independent committee conducted its enquiry into the suspension. • The committee is expected to submit its report within four-six months. • As for the two workers who were suspended in December, the enquiry is complete and a decision would be taken
  • 36. Industrial Dispute According to Section 2(K) of the Industrial Disputes Act, 1947, ‘Industrial dispute’ means “any dispute or difference between – i. employers and employers, ii. employers and workmen, or iii. workmen and workmen, which is connected with (a)the employment or non-employment, (b) the terms of employment, or (c) the conditions of labour of any person. Individual workman cannot raise an industrial dispute
  • 37. Forms OF UNREST/DISPUTES STRIKES: Quitting work by a group of workers for the purpose of bringing pressure on their employer to accept their demands.
  • 38. LOCK-OUTS • an act on the part of the employers to close down the place of work until the workers agree to resume the work on the terms and conditions specified by the employers.
  • 39. GHERAO • ‘Gherao’ means to surround • Group of workers initiate collective action aimed at preventing members of the management from leaving the office. This can happen outside the premises too
  • 40. PICKETING and BOYCOTT • While picketing workers carry/display signs ,banners and placards( In connection with dispute), prevent others from entering the place of work and persuade others to join the strike • Boycott aims at disrupting the normal functioning of an enterprise, Through forceful and negative behavioral acts, strikers prevent others not to cooperate with employer
  • 41. Causes Of Industrial Disputes The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes. Economic Non Economic Wages, bonus, Allowances, Conditions of work, working hours, leave and holidays without pay, unjust layoffs and retrenchment Victimization of workers, ill treatment by staff members, sympathetic strikes, political factors and indiscipline
  • 42. Method of settling disputes Collective Bargaining Code of Discipline Grievance Procedure Dispute Settlement Consultative Machinery Arbitration Conciliation Adjudication
  • 43. Collective Bargaining: • Collective bargaining helps for settlement of issues and prevention of industrial disputes. It occurs when representatives of a labor union meet management representatives to determine employees wages and benefits, to create or revise work rules and to resolve disputes or violations of the labor contract.
  • 44. Code of Discipline • The code of discipline defines duties and responsibilities of employers and workers. • The objectives of the code are: 1. To ensure that employers and employees recognize each others rights and obligations. 2. To promote consecutive co-operation between parties concerned at all levels. 3. To eliminate all forms of coercion, intimidation and violence in IR. 4. To avoid work stoppages. 5. To facilitate the growth of trade unions. 6. To maintain discipline in the industry.
  • 45. Consultative Machinery • Consultative machinery is set by the government to resolve conflicts. The main function is to bring the parties together for mutual settlement of differences in the spirit of co-operation and goodwill. • A consultative machinery operates at plant , industry , state and national levels
  • 46. Conciliation (mediation) • The process by which representatives of workers and employers are brought together before a third party with a view to persuading them to arrive at an agreement by mutual discussion between them. • The conciliator facilitate disputing parties to reach at a decision.
  • 47. Grievance procedure • A grievance procedure is a formal process which is preliminary to arbitration, which enables the parties involved in disputes to resolve their differences in a peaceful and orderly manner.
  • 48. Arbitration • Process in which the conflicting parties agree to refer their dispute to a neutral third party known as ‘Arbitrator’. • Arbitrator gives his judgment on a dispute
  • 49. Machinery for settlement of Industrial Disputes There are two types of arbitration: • Voluntary Arbitration: In voluntary arbitration the arbitrator is appointed by both the parties through mutual consent and the arbitrator acts only when the dispute is referred to him. • Compulsory Arbitration: Implies that the parties are required to refer the dispute to the arbitrator whether they like him or not. Usually, when the parties fail to arrive at a settlement voluntarily, or when there is some other strong reason, the appropriate government can force the parties to refer the dispute to an arbitrator.
  • 50. Machinery for settlement of Industrial Disputes • Advantages of Arbitration: • It is established by the parties themselves and therefore both parties have good faith in the arbitration process. • The process in informal and flexible in nature. • It is based on mutual consent of the parties and therefore helps in building healthy Industrial Relations. • Disadvantages: • Delay often occurs in settlement of disputes. • Arbitration is an expensive procedure and the expenses are to be shared by the labour and the management. • Judgement can become arbitrary when the arbitrator is incompetent or biased.
  • 51. Adjudication • Adjudication consists of settling disputes through intervention by the third party appointed by the government. • The government can refer the dispute to adjudication with or without the consent of the disputing parties. • When the dispute is referred to adjudication with the consent of the disputing parties- ‘voluntary adjudication.’ • When the government refers the dispute to adjudication without consulting the concerned parties- ‘compulsory adjudication.
  • 52. Adjudication Adjudication means a mandatory settlement of an Industrial dispute by a labour court or a tribunal. • Labour court • Industrial Tribunal • National Tribunal
  • 54. Collective Bargaining “Collective Bargaining is a process in which the representatives of a labour organization & the representatives of business organization meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer union relationship”. – FLIPPO • Process involving discussions and negotiations • ‘Collective’ – group • 'Bargaining' – proposals and counter proposals • To reconcile their conflicting interests • Is a flexible approach
  • 55. Definition • I.L.O. workers manual defines collective bargaining as, “negotiation about working conditions and terms of employment between an employer, a group of employers or one or more employer’s organizations, on the one hand, and one or more representative workers organisation on the other with a view of reaching an agreement.
  • 56. Objectives Of Collective Bargaining • To protect the interest of workers by collective action • To achieve industrial democracy • To increase the strength of union and management. • Secure a prompt and fair redressal of grievances • Avoid interruptions of work which follows strikes, go- slow tactics etc. • Promote stability and prosperity of industry
  • 57. Importance To Employees • Develops a sense of self respect and responsibility among the employees. • Increases strength of the workforce, thereby, increasing their bargaining capacity • Increases the morale and productivity of employees. • It restricts management’s freedom for arbitrary action against the employees. • 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.
  • 58. Importance To Employers • Easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. • Promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. • Increases worker participation in decision making. • Collective bargaining plays a vital role in settling and preventing industrial disputes
  • 59. Importance To Society • Collective bargaining leads to industrial peace in the country • It results in establishment of a harmonious industrial climate which supports -economic and social development . • The discrimination and exploitation of workers is constantly being checked.
  • 60. Pre-Requisites for Successful Collective Bargaining • A favorable political climate • Freedom of association • Willingness to give and take • Fair labor practices • Problem solving attitude • Continuous dialogue • Availability of data • Strong independent and well organised unions • Recognition of the union as the bargaining agent • Mutual trust and good faith
  • 61. 1. Distributive/ Conjunctive Bargaining • Involves zero-sum negotiations, in other words, one side wins and the other loses. • Both parties try to maximize their respective gains. They try to settle economic issues such as wages, benefits, bonus, etc 2. Cooperative /Integrative Bargaining Integrative bargaining is similar to problem solving sessions in which both sides are trying to reach a mutually beneficial alternative, ie..A win-win situation
  • 62. 3.Productivity Bargaining The process of reaching an agreement (productivity agreement) through collective bargaining whereby the employees of an organization agree to changes which are intended to improve productivity in return for an increase in pay or other benefits
  • 63. 4. Composite Bargaining: – Workers believed that productivity bargaining agreements increased their workloads. Rationalization, introduction of new technology, tight productivity norms have added to this burden – In this method, labor bargains for wages as usual, but goes a step further demanding equity in matters relating to work norms, employment levels, manning standards, environmental hazards , sub-contracting clauses etc.
  • 64. 5.Concessionary Bargaining Quite opposite to the other forms of bargaining, in concessionary bargaining, the objective is to giving back to management, some of what it has gained in previous bargaining.
  • 65. Management and Unions Power in Collective Bargaining Bargaining Power The power of labor and management to achieve their goals through economic, social, or political influence. Union Bargaining Power • Strikes, pickets, and boycotts Management Bargaining Power • Hiring replacement workers • Continuing operations staffed by management • Locking out employees
  • 66. The Collective Bargaining Process Identify the Problem Prepare for negotiations Discuss Propose Bargain Settlement/ Agreement
  • 67. Trade Union TU is a “continuous association of wage earners for the purpose of maintaining or improving the conditions of their working lives”. V.V.Giri : TU is such an “organisation which is created voluntarily on the basis of collective strength to secure the interests of workers”. G.D.H. Cole: TU means “ An association of workers in one or more professions – an association carried on mainly for the purpose of protecting and advancing the members’ economic interest in connection with their daily work.
  • 68. Section 2(h) of the Trade Unions Act, 1926 has defined a Trade Union as “Any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between • workmen and employers, • workmen and workmen, • employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.”
  • 69. Objectives of Trade Union • To ensure economic security ie Permanent employment with good salary and benefits • To secure better working conditions for the workers. • To secure bonus for the employees from the profit of the concern, • To resist schemes of the management which reduce employment, e.g., rationalisation and automation. • To secure welfare of employees through group schemes which give benefit to every employee. • To protect the interests of employees by taking active participation in the management. • To secure social welfare of the employees. • To secure organisational stability, growth, and leadership.
  • 70. FUNCTIONS OF TRADE UNIONS • Militant or Protective or Intra-mural function • Fraternal or extra mural function • Social Function • Political Function • Ancillary functions
  • 71. • Includes protecting the workers interests – Hike in wages – Providing more benefits – Job security Through collective bargaining and direct action such as strikes, gheraos etc  Includes providing financial and non financial assistance to workers during strikes, lock outs,  Extension of medical facilities during sickness and causalities.  Provisions for education, recreation, housing facilties  Provision for social and religious benefits
  • 72. • Includes social service activities • Discharging social responsibilities  Includes affiliating a union to a political party  Helping political party in enrolling members, collecting donations, canvassing during election period  Seeking help of political parties during strikes and lock-outs
  • 73. 5. ANCILLARY FUCTIONS • Communication: of activities, programs, decisions, achievements to its members through publication of news letters or magazines. (Indian railway worker – magazine of National Federation of Indian Railway worker • Welfare activities: includes acquiring of house sites, construction of houses, establishment of co-opeartive housing societies, cooperative credit societies, organizing training activities • Educational facilities to its members and their family members • Research: collect datas and information for collective bargaining, preparing of notes for union officials, for court cases. – All India Railwaymen’s federation established research cell to conduct surveys on job satisfaction,morale, employee problems, prepare charter of demands etc..
  • 74. Types of TU • Craft Unions – private bus driver’s union • Industrial Union – union of railway employees • General Union – Jamshedpur labour union • Federation – federation of Indian railways • Confederation – Association of federations
  • 75. Problems of Trade Unions Multiplicity of union and union Rivalry Poor Financial Position Small Size Unions Political and outside leadership Low Membership Victimization Inactive Functioning Category wise unions
  • 77. Grievance A grievance is a sign of the employees’ discontent with job and its nature. It is caused due to the difference between employee expectation and management practice. • Beach defines a grievance as, “any dissatisfaction or feeling of injustice in connection with one’s employment situation that is brought to the notice of the management.”
  • 78. Areas of Grievances 1. Grievances resulting from working conditions • Poor physical conditions of work place. • Lack of proper tools, machines and equipments. • Frequent changes in schedules or procedures. • Rigid production standards • Improper matching of the worker with the job. • Poor relationship with the supervisor
  • 79. Areas of Grievances 2. Grievances resulting from management policy and practices Poor payment Lack of job security Inadequate benefits such as medical benefits, leave travel concession etc. Leave facilities Seniority Transfer Promotion Lack of career planning and development Hostility towards labour union Defective leadership style Communication gap
  • 80. Areas of Grievances 3. Grievances resulting from alleged violations of • Violation of collective bargaining agreement • Violation of Central/State laws • Violation of common rules 4. Grievances resulting from personal maladjustment • Over ambition • Excessive self-esteem
  • 81. Methods of Identifying Grievances • Observation • Gripe boxes- complaint boxes in the organisation • Open door policy • Exit interview • Opinion survey • Grievance procedure
  • 82. Forms of Grievances 1. Factual Grievance: Based on actual facts- promotion due but not provided. 2. Imaginary Grievances: Not based on valid reasons, but based on wrong information. 3. Disguised Grievances: No particular reasons, but due to pressure from external sources
  • 83. GRIEVANCE PROCEDURE • Most significant channel through which dissatisfaction of employees can be communicated to management. • A grievance procedure is an ordered multistep process that the employer and employee jointly uses to redress grievances and resolve disputes that arises. Definition “A formal procedure which attempts to resolve the differences of parties involved, in an orderly, peaceful and expeditious manner, may be defined as grievance procedure or grievance redressal machinery. The steps in this machinery vary from organisation to organisation.
  • 84. Essential Requirements Of Grievance Procedure 1. Conformity With Statutory Provisions 2. Un-ambiguity 3. Simplicity 4. Promptness 5. Training 6. Implement and Follow Up
  • 85. Identifying grievances Define correctly Collect data Analyse and solve Prompt redressal Implement and follow up Steps in Grievance procedure
  • 86. Model grievance procedure Aggrieved Employee Foreman Department Representative Section Head Departmental Representative Grievance Committee Manager Committee of union and management Representative Arbitration Step 1 Company Representative Union/Employee Representative (Answer to be given within 48 hours) (decision in 3 days) (decision in 7 days) N S N S N S Supervisor Conveys Orally N S Step 5 Step 4 Step 3 Step 2 Step 6 N S
  • 87. The Model grievance procedure • The Model grievance procedure suggested by the National Commission of Labour involves six successive time bound steps each leading to the next, in case of dissatisfaction. • The aggrieved worker in the first instance will approach the foreman and tell him of his grievances orally. • If not satisfied with this redressal, he can approach the supervisor. The Supervisor has to provide an answer within 48 hours. • If not being acceptable to the worker, the worker goes to the next step. At this stage, the worker either alone or accompanied with his departmental representative approaches the Head of the Department who has to give an answer within three days.
  • 88. The Model grievance procedure • If the Department fails to give answer or if the worker is not satisfied with his answer, the worker may appeal to the Grievance Committee, consisting of the representatives of the employer and the employees. • The recommendation of this Committee should be communicated to the Manager with in seven days from the date of the grievance reaching it. • Unanimous decisions, if any, of the Committee shall be implemented by the Management. • If there is no unanimity, the views of the members of the Committee shall be placed before the Manager for decision. The Manager has to take a decision and the worker within three days.
  • 89. The Model grievance procedure • The worker can make an appeal against the manager’s decision and such an appeal has to be decided within a week. • A Union official may accompany the worker to the manager for discussion . • If no decision is arrived at this stage, both the union and management may refer the grievance to voluntary arbitration within a week of receipt of the management’s decision.
  • 90. Discipline A force that prompts individuals or groups to observe the rules and regulations and procedures which are deemed to be necessary for the effective functioning of an organisation. Discipline regulates the behaviour of employees in an organisation as law regulates the behaviour of people in society. It is always viewed with fear and suspicion.
  • 91. According to webster’s dictionary, Discipline means: • A training that corrects, moulds, strengthens or prospects. • A control gained by enforcing obedience. • It is punishment or chastisement/warning It is the force that prompts individuals or group of individuals to observe rules & regulations which are deemed to be necessary for attainment of Goals´ Dr. Spriegel
  • 92. Forms of Discipline Sub title •Employee supports discipline •Adhere to the rules •Employee enjoys greater freedom •Greater degree of self expression •Strive to achieve group objectives Constructive/ Self discipline •Employee does not support discipline •No adherence to rules •Restrain on freedom •Penality against dis-obeying of rules Corrective / Punitive/ autocratic approach Positive Discipline Negative Discipline achieved through rewards & effective leadership
  • 93. Objectives of Discipline To obtain willing acceptance of rules and regulations To develop among the employees a spirit of tolerance and desire to make adjustments To give and seek direction and responsibility To create an atmosphere of respect for human personality and human relations To increase the working efficiency and morale of employees
  • 94. Red hot Stove Rule Coined by Douglas Mc Gregor Whether major or minor mistake, you will get punishment • The burn is immediate • You had a warning • The effect is consistent • The effect is impersonal
  • 95. Misconduct/Indiscipline Act which is prejudicial to the interest of the organisation. Violation of the rules and regulation
  • 96. Causes of indiscipline • Ineffective leadership • lack of Promotional opportunities • Uninteresting works • Defective communication system • Drunkenness & family problems • Excessive work pressure • Unfair management practices. • Non Uniform disciplinary actions • Inadequate attention to personal problems • Victimization • Divide and rule policy
  • 97. Procedure of disciplinary action Principle of natural justice • No man shall be judge in his own cause (rule against bias) • Right to be heard-(right to a fair hearing) • Reasoned decision a) Preliminary Investigation b) Issuing a letter of charge c) Consideration of explanation d) Show- cause notice – issued by manager ,enquiry notice e) Holding a full fledged enquiry-principle of natural justice f) Recording of findings by the enquiry officer g) Making a final order of punishment- h) Communication of punishment
  • 98. If employee not satisfied with the enquiry he may be given a chance to make an appeal to the Labour Court, National Tribunal Intervention by a tribunal Only under following circumstances the tribunal will consider the case  When there is want of good faith  When there is victimization or Unfair Labour practices  Violation of principle of natural justice  When the findings are baseless and perverse
  • 99. Types of Punishment a) Oral warning – minor mistakes, should be used sparingly. b) Written warnings –first formal state of progressive discipline-”pink slips” c) Loss of privileges and fine d) Punitive suspension e) Withholding of promotions, increments etc. f) Demotion g) Discharge- Termination of employees by giving suitable compensation h) Dismissal- Severe than discharge- termination without any consideration, immediate termination without notice
  • 100. Employee welfare/ Labour Welfare • A comprehensive term including various services, benefits and facilities offered to the employees by the employer. Labor welfare work is the work for improving the health, safety and general well being and the industrial efficiency of the workers beyond the minimum standard laid down by labour legislation. Welfare measures may be both statutory and voluntary
  • 101. Agencies for welfare work • Central Government – through various acts covering safety, health and welfare of workers – The Factories Act, 1948, Mines Act,1952, Shipping Act 1948, Plantation Labour Act 1951, Motor Transport Workers Act 1961, Employee State Insurance Act 1948 • State Government: • Employers • Trade Unions • Other Agencies- Social service societies and associations
  • 102. Types Of Welfare Facilities Broadly classified into two categories INTRAMURAL- within the establishment EXTRAMURAL- undertaken outside the establishment •Drinking Water •Toilets •Crèches •Washing And Bathing Facilities •Rest Shelters •Uniforms And Protective Clothing •Recreation Facilities •Canteens •Subsidized Food •Medical Aid •Housing •Educational Facilities •Maternity benefits •Transportation •Sports facilities •Leave travel •Vocational training •Holiday Homes •Cooperative stores •Fair price shops •Social insurance
  • 103. Labour welfare officer • As per the Factories act of 1948, Plantation Labour Act 1951 and the Mines Act 1951- provide for the appointment of Labour welfare officer , if the number of workers employed exceeds 500 (300 as per the plantation act). Objectives: • To eliiminate the malpractices in the recruitment of labour • Improve labour administration in factories • Serve as laison with the state labor commissioner
  • 104. Duties and responsibilities of Labour welfare officer • Advisory- give advises and suggestions for the formulation of company labour policies, promote welfare schemes etc • Service oriented • Supervisory- welfare , health and safety programmes • Functional- oversee the implementation of labour laws for the benefit of employees • Policing: forward workers grievance to management, influence IR climate when dispute arises • Mediation- to build harmony between labour and management, secure speedy redressal of grievances, resolving troubling issues peacefully
  • 105. Social Security • It is the protection given by the society to its members against contingencies of modern life such as sickness, unemployment, old age, invalidity, industrial accidents. • Aim is to protect people of small means from risks which impair a persons ability to support himself and his family. • Security measures are generally specified by law • Offers some kind to cash payment to individuals to replace at least a part of lost income that had occurred due to some mishaps
  • 106. Social Security • Social Security is ‘ an attack on the five giants that affect workers – wants, disease, ignorance, squalor and idleness.
  • 107. Various risks • Sickness • Invalidity • Maternity • Employment injury • Unemployment • Old age • Death • Emergency expenses
  • 108. Objectives of Social Security Compensation: Offer financial help in a state of physical distress- protection from double calamity Restoration: Enable the worker to recover form the shocks Prevention: Designed to avoid the loss of productive capacity due to risks and to ensure material, intellectual and moral well being of the community
  • 109. Types of Social Security Benefits 1. Social Insurance: • Schemes are finance mainly through contributions from employer, worker and other beneficiaries. • Most of these schemes are compulsorily established by the law. • Benefits are linked to the contributions of insured persons Primary purpose is to ensure minimum standard of living to the beneficiaries during the period of partial /total loss of income . PF, Group Insurance
  • 110. Types of Social Security Benefits 2. Social Assistance: • Benefits are offered to persons as small means by the government out of its general revenues to meet the minimum needs of individuals • Workers and employers do not contribute to such benefits in any manner. Eg: Old age pension, widow pension
  • 111. Social Security Schemes in India • Medical care • Sickness benefit in cash • Old age pension or retirement benefits • Invalidity pension • Maternity benefit • Accident benefit • Survivors benefit
  • 112. The Workmen’s Compensation Act, 1923 Coverage: Covers all workers employed in factories, mines, plantations, transportation, construction, railway, ship etc. It does not apply to casual workers, workers covered under ESI act and members of armed forces Administration: commissions appointed by various state governments. Benefits: Act specifies three conditions for claiming benefits from employer 1. There must be an injury 2. It should be caused in an accident 3. It should be caused during the course of employment Occupational disease compensation also included
  • 113. The Workmen’s Compensation Act, 1923 Compensation depend on wages, age and type of injury, temporary partial disablement, temporary total disablement, permanent disability, permanent total disability. Employer not liable to pay compensation in case 1. when the injury does not lead to partial/total disablement for a period exceeding 3 days 2. When the injury not resulting in death is caused by the fault of the worker.
  • 114. The Employees State Insurance Act,1948 • It provides medical help and unemployment insurance to industrial workers during their illness • Objective – offer social insurance to workers in respect of three contingencies- sickness, employment injury and child birth • Coverage: applicable to all factories other than seasonal factories running with power and employing 20 or more persons, and wage not exceeding 15000/- pm • Administered by ESIC
  • 115. The Employees State Insurance Act,1948 • Contribution: ESI Contribution comprising of employers' share 4.75% plus employees' share of 1.75% Benefits: • Sickness benefit: about the half the wages up to 90 days sickness. • Maternity benefit: • Disablement benefit • Dependents benefit • Funeral benefit
  • 116. The Maternity Benefits Act,1961 Provides for payment of maternity benefit to women workers on certain conditions Coverage: Applicable to all establishments not covers under the ESI Act of 1948 Benefits: • Maternity leave upto 12 weeks • With full wages • The employee should work for at least 100 days in 12 months immediately preceding the day of expected delivery.
  • 117. The Employees Provident Funds and Miscellaneous provisions Act, 1952 It offers retirement benefits to the workers in the form of PF, pension, and deposit linked insurance Coverage: Applicable to factories mentioned in schedule 1, where 20 or more persona are employed Act does not apply to cooperative societies- with less than 50 employee and new establishment for 3 years from date of commencement
  • 118. The Employees Provident Funds and Miscellaneous provisions Act, 1952 Benefits of the Act: Provident fund Scheme : Contribution form both employee and employer every month. Premature withdrawals and loans and advances can be obtained Family pension scheme: when empleyee dies while in service, pension is paid to his widow/children. In the new scheme after the retirement pension is payable to employee instead of PF. Deposit linked insurance scheme: here the legal heir or nominee of the deceased employee gets the amount equal to the average balance in his PF during the preceeding one year subject to a maximum of Rs. 3500. Employer and the government makes the contributions
  • 119. Payment Of Gratuity Act, 1961 Provides for a scheme of compulsory payment of gratuity to employees engaged in factories, mines, oil fields, plantations, ports, railways, shops or other establishments Eligibility: Employee other than apprentice with Continuous service for 5 years or more Payable at: • Superannuation or retirement • Resignation/retrenchment • On death or disablement due to disease or accident
  • 120. Payment Of Gratuity Act, 1961 In case of death of employee, gratuity is paid to the nominee, if no nominee it will be given to the legal heirs. Calculation 15 days wages based on the rate of wages last drawn x no. of years worked Should not exceed 3,50,000/- Administration: Both central and state Govt. Officers appointed by the appropriate govt.
  • 121. Group life Insurance Provides insurance to several employees working under one employer as long as they remain with the employer. Employer enters into contract with the insurance company on behalf of all employees covered therein Premium is paid by employee and employer jointly It is paid at a flat rate without considering the age or salary of the employee Premium is low, so it is highly attractive to salaried people in the low income category