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Chapter-I Industrial Relations: A Theoretical Frame Work

The document discusses industrial relations, which refers to the relationships between employers and employees in an organization. Good industrial relations are important for economic progress, establishing industrial democracy, and boosting worker morale and productivity. The key participants in industrial relations are workers and their unions, management and employer organizations, and the government. The main objectives of industrial relations are to avoid conflicts, achieve cooperation between employers and employees, and maintain industrial democracy.

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0% found this document useful (0 votes)
88 views

Chapter-I Industrial Relations: A Theoretical Frame Work

The document discusses industrial relations, which refers to the relationships between employers and employees in an organization. Good industrial relations are important for economic progress, establishing industrial democracy, and boosting worker morale and productivity. The key participants in industrial relations are workers and their unions, management and employer organizations, and the government. The main objectives of industrial relations are to avoid conflicts, achieve cooperation between employers and employees, and maintain industrial democracy.

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Farhan Faru
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© Attribution Non-Commercial (BY-NC)
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CHAPTER-I INTRODUCTION INDUSTRIAL RELATIONS: A THEORETICAL FRAME WORK


Industrial Relations is one of the most delicate and complex problems of modern industrial society. The term industrial relations is used to express the nature of relationships between the employer and the employee in an industry or an organization. Where co-operation emanates from employees towards the achievements of organizational goals, there is said to be a good industrial relations. Industrial relations are composite results of the attitudes and approaches of employers and employees towards each other with regard to planning, supervision, direction and co-ordination with a minimum of human efforts and frictions with an animating spirit of co-operation and with proper regard for the genuine well being of all members of the organization. Such relation is a social concept, which deals with social relationships in different lifestyles. It is also a concept of relations that flourishes or stagnates and decays in all accordance with the economic, social and political conditions prevailing in society and the law made by the state to regulate them. The advances made in the field of science and technology also influence the state of industrial relations. There is a greater divergence in industrial relations system because of the divergent economic, social, political and cultural environments. The creations and maintenance of good relations between the workers and the management is the very basis on which the development of an industrial democracy depends. Industrial relation seeks for gaining co-operation of the two partners in the industry and in the field of production and promotes industrial peace.

The healthy and orderly industrial relations in an enterprise generate attitudes, which procreate progress and stabilize democratic institutions. Stable industrial relation means a situation when requirements of managements and the workforce are discussed between them in a spirit of mutual truszt and confidence and without causing friction. This would reduce supervisory and administrative work as also enable better planning for the future production and expansion. The workforce on the other hand expects liberal thinking by management and a more human approach to their needs by giving stable relations. Stable relations therefore, means to an end and not an end in itself. The unions are also involved in industrial relations. Through stability, they obtain for the workforce more benefits. The government would like stable relation to prevail both for better production and for easier law and order. Industrial relations play a vital role in establishing and maintaining industrial democracy. In various countries they have passed through different stages of development, depending on social, economic and political situations prevailing in an each country. The most important fact to be noted that one thread which runs through the whole fabric of industrial relations and which is necessary for success is that labour is not an article /commodity of commerce but it is living being, which needs be treated as human being and that employees differ in mental and emotional abilities, sentiments and traditions. Therefore, maintenance of good human relationships is the main theme of industrial relations because in its absence the whole organizational structure may crumble down. As such the employees constitute the most valuable asset of any organization. On the other hand, a contented labour force may bring about outstanding success besides, earning huge profits and goodwill for the enterprise and peaceful industrial atmosphere.

DEFINITIONS OF INDUSTRIAL RELATIONS: To have a clear understanding of the term industrial relations a few definitions of some authorities are given below: Industrial relation is an art, the art of living together for purpose of production. The field of industrial relations therefore, includes the study of workers and their trade unions, management, employers associations and the state institutions concerned with the regulation of employment.The subject of industrial relations therefore, includes individual relations and joint consultation between employers and work people at the place of work, collective relations between employers and their organizations and the trade unions and the part played by the state in regulating these relations as complex of interrelations among managers, workers and agencies of governments. R.A.Lester defines industrial relations involve attempts at workable solution between conflicting objectives and values between incentive and economic security, between discipline and industrial democracy; between authority and freedom, between bargaining and co-operation Allan Franders defines Industrial relations as one deals with certain regulated institutional Relationship in industry Industrial is fascinating subject for study, understanding discussion and practice as it covers the whole range of human relations with in industry Bethel and others define Industrial Relations is that part of management which is concerned with the man power of the enterprise whether machine operator skilled worker or management.

SIGNIFICANCE OF INDUSTRIAL RELATIONS: The importance of good industrial relations and the maintenance of industrial peace for raising the tempo of productions have assumed a high significance in recent times. This has resulted in evolving ways and means of enlarging the area of employer-worker cooperation, which to a large extent depends on preserving the human element in their relationship in an industry. Beginning of 20th century, especially after 1st world war several scientific studies had been undertaken in a many advanced countries. This resulted in the improvement of the products and better relations in industry. That alone would entitle them to secure high standards of living and other amenities in the form of social security benefits and reduction in the hours of the work. Good industrial relations are necessary for the following reasons: i) To help in the economic progress of a country: the effort of maintaining good industrial relations is essentially the efforts made for an increase in productivity and hence industrial relations form an important element of the economic development of the nation. ii) To help in establishing and maintaining true industrial democracy. iii) To help the management both in the formation of industrial democracy and informed labour relations policies. iv) To encourage collective bargaining as a means of self-regulation. v) To help the government in making laws for bidding unfair practices of union and employees. vi) To boost up the discipline and morale of workers.

OBJECTIVES OF INDUSTRIAL RELATIONS: The primary objective of industrial relations is to bring about good and healthy relation between employers and employees. In addition to that the major objectives are the following: i) To safeguard the interest of workers and management by securing mutual understanding and goodwill among the industry. ii) iii) To avoid industrial conflicts. To achieve a sound harmonious and mutually beneficial employeremployee relation. iv) To raise the productivity to a higher level by reducing the tendency to higher and frequent absenteeism. v) To establish and maintain industrial democracy based on labour partnership in sharing of profits and of managerial decisions so that the individuals personality may be fully developed. vi) To avoid unhealthy atmosphere in the industry especially strikes, workstoppage, gheraos, lockouts etc. by providing reasonable wage, improved living and working conditions and fringe benefits. vii) To establish government control on plants and units which are running at a loss or in which production has to be regulated in the public interest. viii) To establish and maintain industrial democracy.

THE PARTICIPANTS OF INDUSTRIAL RELATIONS Workers and their organization Management and their organization The government Workers and their organization are mainly political institutions, which are association of employees formed and maintained for the purpose of securing the needs of the employees .they require power, status and authority by support of their membership. Management and their organizations emphasize on work groups, teams and their variation in size, composition and extent of specialization they impose, provision for internal communication, structure of status and authority and such organization as unions and employers associations. Government tries to regulate the relationship between the employers and the employees. This relationship is enforced and maintained through labour courts, industrial tribunals, wage board etc., which lay down principles, norms, rules and regulations and give awards. All these are placed on the statute and have to be observed by workers and employers as well. Thus, industrial relations form a part of an industrial life. These complex relations may be studied from different angles such as: Employer employee relations at the industry/company level. Group relations among various groups of workers. Community relations between the industry and society.

The study is concerned with the first aspect only i.e., labour management (employer employee) relations with reference to MRF, Kottayam. This study also attempts to make suggestions and recommendations for the healthy employer employee relations; in the company. MAJOR FACTORS AFFECTING INDUSTRIAL RELATIONS Industrial relations are greatly influenced by a number of interacting factors such as 1. Trade union: Trade union is any combination of persons for the purpose of regulating the relations between workers and employers, or between workers and workers and for imposing the restrictive conditions on the conduct of any trade or business [sec: 2(b) of the Trade Union Act 1926]. Industrial relations in India are closely linked with trade unionism. A recent trend in the trade union movement in our country has concern in the establishment of industrial harmony. 2. Labour and industrial laws: Labour and industrial laws provide the machinery and procedure for the investigation and settlement of industrial disputes. The object of all labour legislation is to ensure fait wages and to prevent disputes so that production a might not to be adversely affected. 3. Political parties: One of the biggest problems, which the countrys trade union movement faces, is the influence of political parties. The unions are closely linked with political parties and political leaders continue to dominate the unions. The consequence of the political involvement of unions in India has been the simple fact that trade unions

are formed to safeguard and promote the social and economic interest of workers has tended to become tools of political parties. 4. State intervention: A question is often raised as to why the state should intervene in employee relations. The answer is this is so long as the rights of private properly remains in the society, some people, will continue to own the means of production and distribution of goods due to the entrepreneurship on their part ad a large number of persons will continue to seek work and remain at the mercy of their employers. Such a state of affairs allows scope for exploitation of the later by the former. The state cannot remain the silent spectator to this widely prevalent drama. 5. Socio-Economic factors: In countries with an economic system of mixed economy such as India, public sector and private sector co-exist. Here, there are many methods dealing with labour management relations ranging from conciliation and collective bargaining to the ethical codes and bipartite and tripartite forms for consultation. The government has shifted its emphasis from time to time and pragmatism has alternated between the ideology of the mixed economy and the Gandhian philosophy of trustee-ship. CONDITIONS OF GOOD INDUSTRIAL RELATIONS Good industrial relations greatly depend on the following factors: 1) History of industrial relations: Industrial relations of an enterprise greatly related to its history. A good history is marked by harmonious relationship between management and workers and a bad history is characterized by strikes and lockouts.

2) Economic Satisfaction of wzorkers:

A human conduct is dominated by his needs in which survival need have certain priority. In under developed countries, workers are still under subsistence condition and hence economic satisfaction of workers is added important prerequisites. 3) Social and Psychological Satisfaction: Identifying the social and psychological urge of workers is a very important step in building good industrial relations. The leadership by an employer is said to be fulfilled when he gives standard economic rewards and provides conventional benefits and not blame his employees when they render the minimum prevailing level of work. 4) Off- Job Conditions: If a persons different treat is analyzed it is seen that his home life is not to totally a part from his work life and his emotional conditions is not separate from his physical conditions. Hence for good industrial relations his off-job conditions should be improved. 5) Enlightened Labour Unions: An important condition necessary for good industrial relations is strong and enlightened labour movement, which may help to promote the status of labour without jeopardizing the interest of management.

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6) Public policy and legislation: A major force determining industrial relations is the government intervention. It helps in solving problems give emotional release to dissatisfaction and checks the arbitrary and capricious management action. 7) Better Education: Better education of workers can provide a proper sense of responsibility, which they owe to the organization in particular and to the community in general. 8) Nature of Industry: In those industries where direct and indirect labour costs a major proportion of the total cost and when the product is not a necessity, there is little probability of increasing the costs to consumer, such industries cannot grant increase in wages. INDUSTRIAL DISPUTES: An industrial dispute, is defined by section2 (k) of the Industrial Dispute Act, Any dispute or difference between employees and employers, between employers and workmen or between workmen and workmen, which is connected with the employment or non employment or the terms of employment or with the conditions of labour of any persons Industrial strikes constitutes militant and organized protects against existing industrial conditions. They are symptoms or industrial unrest in the same way that boils are symptoms of a disorder. Every demand made by workers or a workers union and refused by the management or the employers would give rise to industrial disputes.

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CAUSES OF INDUSTRIAL DISPUTES: a) Industrial Factors: Under this category some of the causes of disputes may be relating to employment, work, wages, hours of work, the right and obligations of employees and employers, terms of conditions of employment, matters pertaining to dismissal of any person, demarcation of the function of the employees etc., Disputes often arise due to rapidly increasing population and hence diminishing gainful employment and raising unemployment. The galloping prices of essential commodities may erode the value of money resulting a decrease in real wages of the workers. Another reason for industrial disputes is the failure of trade unions in safe guarding the interest of the workers, which arises due to rivalry between trade union and multiplicity of trade unions non-recognition etc., b) Management Attitudes to Labour: Management generally is not willing to talk over any disputes even when the trade unions want them to do and encourage the workers. A management unwilling to recognize a particular trade union and negotiate with the delegates of trade unions, poor policies for recruitment, promotion, transfer etc may lead to industrial disputes. In experienced and inadequate managements, which do not catch up with the change of times and adjust themselves into the changed conditions may cause dissatisfaction.

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c) Government Machinery: Though there is a Plethora of enactments for the promotion of harmonious relations, yet these have been ineffective or unsatisfactory in most causes because of i) Its inability improper and inadequate implementation, irrelevance in the context of the challenges of the present industrial climate. ii) Lack of confidence by the employer and employee litigation, lack of proper implementation of labour laws, training for the officers associated with conciliation proceedings in handling the problem etc., TYPES OF INDUSTRIAL DISPUTES: Industrial disputes may take the form of strikes, gheraos, lockouts, layoff and retrenchment. 1) Strikes means a cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal under a common understanding of any number of persons who are or have so employed to continue to work or to accept employment. The strikes have been recognized as a legitimate weapon of workmen for ventilating their grievances or seeking enforcement or rights. But it is not a fundamental right so that it could have been controlled by the industrial dispute act. The Indian constitution does not consider the right to strike as a fundamental right.

2) Gherao:

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Gherao means encirclement of the manager to criminally intimidate him to accept the demands of the workers. the object of gherao is to compel those who control the industry to submit to the demand of workers without resources to the machinery provided by law and in disregard of it. It amounts to criminal conspiracy under section 120A of the Indian Penal Code and is not saved by section 17 of the Trade Union Act on the ground of its being as a concerted activity. 3) Lock-out: Lock out refers to be action of an employer in temporally closing down his undertaking or refusing to provide his employees with work with the intention of facing them either to accept the demands made by employees on him. According to sec.2(!) of Industrial Disputes Act 1947, a lock-out means, the closing place of business or employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him. 4) Lay-off: According to sec.2 (kkk) of the Industrial Disputes Act 1947, lay-off means the failure, refusal or inability of an employer to give employment to a workman on, account of shortage of fuel, power or raw material, the accumulation of stock, the break down of machinery, natural calamity or for any other connected reason. Lay-off is temporary and the workman does not cease to be in the service of the employer. The workmen so laid of shall be paid by the employer compensation for all days during which he is so laid off.

RETRENCHMENT:

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Retrenchment according to sec.2 (00) of industrial dispute Act 1947 means the termination by the employer of the service of a workman for any reason what so ever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include; a) Voluntary retirement of the workman b) Retirement due to superannuation c) Termination of the service d) Termination of the service on expiry of contract etc.,

GRIEVANCE: Grievance as only discontent or dissatisfaction. Whether expressed or not whether valid or not arising out of anything connected to the company than an employees thinks, believes or even feels is unfair, unjust or inequitable. In other words it is any real or imagined feeling of personal injustice with an employment relationship. The dissatisfaction may be arise out of something connected with the company, the disconnected due to expressions like gossiping, jealousy, active criticism, argumentations, poor workmanship etc., Grievance is a trust on human relations. The cost of grievance can be high in the terms of time lost, poor work, damage to costly machines by neglect poor customer service, union management, conflict and so on Effective grievance administrations help the management to shift from poorly preventive and maintenance needs to the developmental needs of employees such as improving communications, job redesigning, integrations which corporate goals etc.,

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Grievance Redressal Procedure In every organization there must be a fair system of grievance procedure. It is a basic requirement for the promotion of healthy labour relations. A good and fair system of grievance redressal procedure wins the confidence of the workers and gives them a feeling of security and social justice. The grievance redressal procedure may be of an open door policy type or stepladder procedure. In an open door policy, the management points out that no workers is prevented from coming to them directly with his grievances and can meet the head of the firm to get his grievance redressed. But this may be suitable only for small units. When the firm is large, its head may not be free to see the workers immediately or may feel the matter so trival as not to warrant his personal attention. Therefore, in most companies a step-ladder procedure for expeditious processing of grievances is more suitable

PROFILE OF MRF KOTTAYAM THE UNIT OF STUDY

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Madras Rubber Factory (MRF): In India MRF today is one of the largest manufacturer and market leader of tyres. In a short span of fifty-six years, it has become one of the largest rubber companies. A young entrepreneur, Sri.K.M.Mammen Mappillai opened a small toy balloon manufacturing unit in a shed at Thiruvattiyur in Madras (now Chennai) is the genesis of MRF. In 1961 with the success achieved in the tread rubber, MRF entered into the manufacturing of tyres. MRF became the first Indian company to export tyres to USA the very birth place of tyre technology. History of MRF Kottayam Unit The success of the first unit of MRF at Thiruvattiyur, motivated the management to float a unit in Kerala to take advantage of low electricity cost, tax concessions, natural rubber availability at an extra transportation cost and availability of educated and skilled labour. MRF tyre Ltd., Kottayam was situated in the village Vadavathoor about 7kms from Kottayam. At present the companys employees consists of:

Employee Strength: The following table shows the details of strength of employees.

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Strength of employees Designation Manager Office Assistants Ministerial staff Management personnel Workers Watchman and fire men No 26 66 11 167 1300 52

Source: Primary Data Products of MRF Kottayam Unit There are six products produced in MRF Kottayam unit. They are Automobile Tyres, Tubes, Retreading Rubber, Flap, Bladder and Curing bags. The Automobile Tyres include truck, tractor, and jeep tyres. The brand names are Shakthi, Krishi, Rower and twin tread. Tube is the inside component of the tyre which is inflated and gives the shape and strength to the tube. There are two types of Retreading rubber namely, Procured and Conventional Tread Rubber (PCTR). In the case of conventional retreading, the retreading materials are applied on the top of the worn out tyre and kept in a press and cured, whereas in the case of PCTR the already cured tread is applied on the top of the tyre and pressurized. Flap is used as protective sheath, which protects tube and also prevents the transfer of heat from the tyre to the tube. Bladder is a component, which is used for curing the tyre. The internal media viz. hot water, high pressure steam, cold water etc are passed through the bladder for effective heat transfer and speedy cure. Curing bags are also used for retreading the tyres. First it is spread as a tyre and then after the application of PCTR, it retains thermal inputs.

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Daily Production of MRF Kottayam: The Daily production of MRF Kottayam is provided in the below table. Daily production Sl. No 1 2 3 4 5 6 Products Tyre Tube Tread rubber Flap Bladder Curing bag No. of. Units 1403 7047 1062 1468 14 24

Source: primary data

Organization structure of the HR Department

Plant Human Resource Management

Deputy manager-Human Resources Human Resource Officer Canteen Welfare Officer & Family Welfare Coordinator Time Office Officer Training

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The human resource department is known as the backbone of an organization. It performs a number of activities concerned with the employees of their organization. It interacts with other departments to ensure effective running of the company. The functions of the Human Resource Department include.The following are the various activities being undertaken in HR Department 1. Recruitment and Confirmation of Employees The initial recruitment of staff is conducted at the Kottayam unit. In the case of management staff, the recruitment, selection and placement is done by the corporate HR department. Induction and orientation is given by the respective Plant HR. This is to align the objectives and goals of the individuals with the company, so the same synergy is kept up for the development of the company. In the case of workmen, selection process is conducted by plant HR department through a written test followed by an initial interview. The final interview is conducted at the corporate head office in Chennai. MRF follows the tradition of selecting relatives of existing workers when a vacancy arises. This helps to boost up the morale of the employees and productivity. Line of Appointment

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Position Training Apprentices hip Probation Confirmatio n

Period 6 Months 16 Months 6 Months

2. Wages and Salary Administration Wages for the workmen is fixed based on a long-term agreement. It is paid to the workmen based on the work done on each day as a piece rate system. The work done on each day is recorded in a work sheet and is routed through a time keeper to the account section where the wages are calculated and paid to the worker. Wages to be paid for the casual workmen is fixed and revised from time to time. In the case of the Management Staffs, the corporate HR fixes a salary. Plant HR coordinates the periodic appraisal of his performance, which is the basis for salary revision. Salary for staff is paid on the basis of attendance and the entry and exit time of the employee. The Time Keeper monitors the attendance, and the leave details of the staffs. Allowance The workmen are provided dearness allowances, fringe benefits, bonuses and other payments according to the rules and regulations of the company. There are also provided overtime wages and privilege bonus. Overtime bonus wages are given to people who normally work beyond their time such as after regular shifts and in the night shifts. 3. Career and Success Planning Career is the position held by an employee of an organization in the same hierarchy. This may be due to seniority and performance. Here at MRF, the promotion

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depends upon the parameters such as merit, suitability and seniority to the job. For some promotions a test is also done and followed by interview. 4. Industrial Relations and Labour Management: The MRF (P) Ltd has very good and cordial industrial relations. The two trade unions of the company are INTUC and CITU. Welfare: The management, for the smooth flow of welfare activities, has appointed a statutory welfare officer approved by factories board and the government. The Welfare officer appointed carries out the welfare measures like conducting programs at family welfare centre. Labour welfare aims at providing the physical, psychological and general well being of the working population. I. Medical Facilities Every employee and his family members are covered under a health scheme based on his/her wage package. A special medical insurance scheme is arranged for workers covering their expenses in connection with hospitalization and personal accident. The factory has four plants inside the premises where first aid facilities are provided. It also has an ambulance and a room with male nurse for medical help.

II. Counseling: Counseling at MRF, Kottayam is mainly done as a cause for absenteeism among workers. The major problems of absenteeism are attributed from alcoholism to low capabilities of work. The problems of Behavioural, psychiatric and marital discords are also assessed through counseling. The incidence of job dissatisfaction is reduced through

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counseling which is contributory to achieving a steady improvement in employee and company morale III. Home Visiting: The houses of the employees who absent themselves from work are visited by the welfare officer as a routine procedure of investigation. A situational report is presented to the management on the investigations undertaken. At the time of any event relating to death or other ceremony, the plant manager visits the house of the respective employee and provides organizational support from his side. He provides on behalf of the management, an amount for the grievance of the employee in the event of death of the employee. IV. Canteen facilities: The canteen is run by the management, and the welfare officer takes care of the quality of food provided by the canteen. The canteen provides food twice a day with snacks and tea at subsidized rates. The welfare officer is assisted by a supervisor who monitors the activities of the canteen.

V. Training: Training enhances the knowledge and skills of the employees and improves their performance. It helps to achieve the objectives of the company. Training is an on going and continuous activity of MRF. MRF provides on and off the job training for its newly appointed staffs and workers. 5. Time office:

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To keep the track of attendance of the staff, punching machines are kept at the Administration Block. The punching machine for the workers is fixed at the time office. The employees are asked to punch the machine to register their attendance correctly. At MRF, the workers are given wages according to the output they produce which is known popularly as the piece rate sys

CHAPTER -2 RESEARCH DESIGN STATEMENT OF THE PROBLEM:


The relationship of employer and employee is that of a mutual confidence. Both the parties are equal partners to the prosperity of an organization with added responsibility on the part of the workers to discharge their duties and employers to maintain the relationship. But

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unfortunately, this fact of equal status is almost neglected. Instead, a superior- inferior feeling is followed in many organizations. A company provides a number of services to develop a good relationship between employer and employee. MRF Kottayam unit is one among them to develop a good industrial relation. This study therefore, attempts to analyze the industrial relations in MRF conducive to bringing about a healthy relation and maintain the status as visualized by the management and workers.
1.2

OBJECTIVES OF THE STUDY:


The study was initiated with the core objective of analyzing the industrial relations, and to explore on
How far the industrial relations are conducive to ensuring the personnel

relationship.
How far the industrial relations are falling in line with the promotion How far the industrial relations are promoting with the welfare amenities. How far the industrial relations are complementary to the labour management

relations.
To study how far the industrial relations are helping to compensate the

grievances of the employees.

1.4 SCOPE OF THE STUDY

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The industrial relationship depends mainly on the following criteria: Conditions of employment and work. Opportunities for better development. Unions and their coordination with men and management for settlement of dispute. Job security. Bearable work load. Incentive from the organization and motivation from the employer. RESEARCH METHODOLOGY: a) Nature of the study: This study is descriptive in nature.
b) Data required:

For an effective segmentation of the respondents the information required is about age, educational qualification and experience of the employees.

c) Collection of data: Both primary and secondary data were used in this study. The primary data were collected through structured questionnaire from:

The workers of various departments and office staff Various union leaders. The personnel department.

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Various records from the office.

d) Sample design: By convenience sampling method, a sample of 90 respondents was selected which consists of both employees and staff from various departments in MRF.
e) Analysis of data:

The data collected through questionnaire were analyzed on the basis of variables such as education and experience of the employees. TOOLS OF ANALYSIS Chi-square test (X2-test): Chi-square test was applied for drawing out a meaningful inference. The formula used for the test was:(O-E)2

2=
E

O- Observed Frequency E- Expected Frequency E= row total * column total 2 Degree of freedom = (r-1) (c-1) where, R=Number of rows C=Number of columns in the chi-square table

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HYPOTHESIS: The following hypotheses were furnished in the study; H1 there is no relationship between industrial relations and educational qualification of the employees H2 there is no relationship between industrial relations and the experience of the employees

1.5 LIMITATIONS OF THE STUDY The study is subject to the following limitations: i) Response from the employees was not encouraging which has resulted in a shallow analysis. ii) Time schedule was not conducive to conducting discussions with officials and trade union leaders. iii) As the data was collected by using questionnaire, the study is subjected to the general limitation applicable to any study based on questionnaire. iv) Since the study is limited to a particular unit only, the conclusion may not have universal validity. for better development. Unions and their coordination with men and management for settlement of dispute. Job security. Bearable work load.

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Incentive from the organization and motivation from the employer.

CHAPTER-3 DATA ANALYSIS AND INTERPRETATION


This chapter deals with the analysis of the data collected. The satisfaction levels of the employees in respect of some important variables, which affect industrial relations are assessed here. Primary data were collected through structured schedule/questionnaire. For the purpose of the study, a sample of 90 employees was selected. The study is based on

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variables like inter-personal relationship, promotion, welfare scheme, labour-management relationship and handling of grievances. For the analysis, chi-square (5%) test is used.

Table 3.1 Age-wise distribution of workers No 1 2 3 Category Below 30 years 30-40 years Above 40 years Total Source: Primary data The above table shows that 42% of the employees are in the age above 40 years, 36% of them are in the age between 30-40 years and 22% of the employees are in the group of No.of.employees 20 32 38 90 % 22 36 42 100

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below 30 years. Age-wise distribution of employees reveals that majority (42%) belongs to the group of above 40 years. Chart 3.1 Age-wise distribution of workers

22%
Below 30 years

42%

30-40 years Abov 40 years e

36%

Table 3.1.2 Educational Background of employees No 1 2 Category Undergraduate Graduate Total Source: Primary data From the above table it is clear that 83% of the workers in MRF are undergraduates and 17% of the workers are graduates. No. of employees 75 15 90 % 83 17 100

Chart 3.1.2 Educational Background of employees

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17%

Undergraduate Graduate

83%

Table 3.1.3 Monthly Income

No of Respondents Rs. 5000 10,000 Rs. 10,000 15,000 Above Rs. 15,000 Total 25 36 29 90

Percentage 28 40 32 100

Source data: Primary data The above table shows that (28%) of the employees are having Rs5000-10000 monthly income (40%) have 10000-15000 monthly income & (32%) have above 15000 monthly income.

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Chart 3.1.3 Monthly Income

10 9 8 7 6 5 4 3 2 1 0 Rs. 5000 10,000 Rs. 10,000 15,000 Above Rs. 15,000

Above Rs. 15,000 Rs. 10,000 15,000 Rs. 5000 10,000

Table 3.1.4Opinion about their supervisor No of employees Good Satisfactory Poor Total Source: Primary Data From the above table, it is clear that 61% have a good opinion about supervisor, 28% are satisfied and 11% have poor opinion about
70 60 50 E G 40 A T 30 N E C 20 R E 10 P 0 Good

% 61 28 11 100

55 25 10 90

61

Chart 3.1.4 Opinion their supervisor

28 11

Satisfactory

Poor

33

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Table 3.1.5 Opinion about relationship with co-workers No of workers Friendly Normal Enemy Total Source: Primary Data From the above table, it is clear that, 76% of the employees have friendly relation with coworkers, 16% of the employees have poor relation with co-workers and 8% of the employees have normal opinion about the relation with co-workers. Chart 3.1.5 Opinion about relationship with co-workers 68 8 14 90 % 76 8 16 100

Table 3.1.6 Opinion about the promotion policy

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No of workers Good Fair Bad Total Source: primary Data 27 23 40 90

% 30 26 44 100

From the table, it is clear that 30% of the employees have good opinion about the promotion policy, 26% of the employees have fair opinion and 44% of the employees have bad opinion about promotion policy. Chart 3.1.6 Opinion about the promotion policy

50 45 40 PERCENTADE 35 30 25 20 15 10 5 0 Good Fair 30 26

44

Bad

Table 3.1.7 Level of satisfaction regarding the quality of the welfare facilities

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No of workers Highly Satisfied Satisfied Neither Satisfied Nor Dissatisfied Dissatisfied Highly Dissatisfied Total Source: Primary Data 12 32 10 16 20 90

% 13 36 11 18 22 100

The above table shows that 13% of employees are highly satisfied 36% are satisfied and 11% are neither satisfied nor dissatisfied18% of the employees are dissatisfied and 22% of the employees are highly dissatisfied. Chart 3.1.7 level of satisfaction regarding the quality of the welfare facilities

Highly Satisfied Satisfied Neither Satisfied Nor Dissatisfied Dissatisfied Highly Dissatisfied

Table 3.1.8 Opinion about safety measures No of employees %

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Satisfied Dissatisfied Total Source: Primary Data

70 20 90

76 24 100

From the above table, it is clear that 76% are satisfied with the trade union effectiveness and 24% of them are dissatisfied. Chart 3.1.8 Opinion about safety measures

Table 3.1.9 Measuring the relation between department and workers opinion about recognition of merit

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Opinion about recognition Good Satisfactory Poor Total Source: Primary Data

Total 23 37 30 90

% 26 41 33 100

From the above table, it is clear that 26% says good 41% says satisfactory 33% says poor about the recognition of their merits. Chart 3.1.9 Measuring the relation between department and workers opinion about recognition of merit

Table 3.1.10Measuring the relation between experience and workers opinion about satisfaction level
Opinion about satisfaction level Highly satisfied Satisfied

Total 25 40

% 28 44

39

Neither satisfied Nor Dissatisfied Dissatisfied Highly Dissatisfied

15 6 4 90

17 7 4 100

Total Source: Primary Data

The above table shows that 28% of employees are highly satisfied 44% are satisfied and 17% are neither satisfied nor dissatisfied7% of the employees are dissatisfied and 4% of the employees are highly dissatisfied. Chart 3.1.910 Measuring the relation between experience and workers opinion about satisfaction level

Table 3.1.11 Opinion about trade union effectiveness No of employees Satisfied Dissatisfied 70 20 % 76 24

40

Total Source: Primary Data

90

100

From the above table, it is clear that 76% are satisfied with the trade union effectiveness and 24% of them are dissatisfied. Chart 3.1.11 Opinion about trade union effectiveness

24%

Satisfied Dissatisfied

76%

Table 3.1.12 Opinion about punishment No of employees Very strict Strict 25 48 % 28 53

41

Fair Total Source: Primary Data

17 90

19 100

From the table, it is clear that 53% have the opinion that punishment is strict, 28% of the employees have the opinion that the punishment is very strict and 19% of the employees have fair opinion about the punishment Chart 3.1.12 Opinion of about punishment

60 50 PERCENTAGE 40 30 20 10 0 Very strict 28

53

19

Strict

Fair

Table 3.1.13 Opinion about grievance handling procedure No of workers Good Fair Bad 27 23 40 % 30 26 44

42

Total Source: primary Data

90

100

From the table, it is clear that 30% says good 26% says fair 44% says poor grievance handling procedure. Chart 3.1.13 Opinion about grievance handling procedure

50 45 40 PERCENTADE 35 30 25 20 15 10 5 0 Good Fair 30 26

44

Bad

Table 3.1.14 Opinion about adequate training facilities

No of employees Yes No 60 30

% 67 33

43

Total Source: Primary Data

90

100

From the above table, it is clear that 67% says yes and 33% says no about the adequate training facilities. Chart 3.1.14 Opinion about adequate training facilities

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Yes No

Yes No

Table 3.1.15 Opinion about receive proper communication form their superiors.

No of workers Always Sometime Occasionally 31 34 25

% 34 48 18

44

Total Source: Primary Data

90

100

From the above table, it is clear that 3% says always receive communication and 48% says sometimes they receive communication and18% says occasionally receive proper communication from their superior. Chart 3.1.15 Opinion about receive proper communication form your superior

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Always Sometim e Occasionally

Always Som etime Occasionally

Table 3.1.16 Opinion to communicate with top management No of employees Yes No Total Source: Primary Data 36 54 90 % 40 60 100

45

From the above table, it is clear that 40% says yes and 60% says no about the communication with top management.

Chart 3.1.16 Opinion to communicate with top management

Yes No

Table 3.1.17 Opinion of Workers Participation in Management is possible in their organization No of employees Strongly Agree Agree Neither Agree Nor Disagree DisAgree Strongly Disagree 45 30 5 8 2 % 50 33 6 9 2

46

Total Source: Primary Data

90

100

The above table shows that 50% of employees are strongly agree that the possibility of WPM in their organization Chart 3.1.16 Opinion of Workers Participation in Management is possible in your organization

Measuring the relation between department and workers opinion about recognition of merit H0: there is no relation between department and recognition of merit. Table 3.1.18 showing the relation between department and workers opinion about recognition of merit. Opinion about recognition Good Satisfactory Poor Departments Finance 10 7 8 Hr 6 13 11 Marketing 7 17 11 23 37 30 Total

47

Total

25

30

35

90

o 10 7 8 6 13 11 7 17 11

E 6.39 10.28 8.33 7.67 12.33 10 8.94 14.39 11.67

o-e 3.61 -3.28 -0.33 -1.67 0.67 1 -1.94 2.61 -0.67

(o-e)2 13.0321 10.7584 0.1089 2.7889 0.4489 1 3.7636 6.8121 0.4489 (o-e)2/e

(o-e)2/e 2.039452 1.046537 0.013073 0.363611 0.036407 0.1 0.420984 0.473391 0.038466 4.531923

Degrees of freedom = (c-1) * (r-1) = (3-1)- (3-1) = 4 Table value = 9.49

Feature Department and recognition

CV 4.53

DOF 4

TV 9.49

Criteria CV < TV

Result Accept the ho

Since the calculated value 4.53 is less than table value at 5 % significant level 9.49, so we accept the Ho. It means that there is no significant relation between department and opinion about the recognition of their merits

48

Measuring the relation between experience and workers opinion about satisfaction level H0: there is no relation between experience and workers opinion about satisfaction level. Table 3.1.19 showing the relation between experience and workers opinion about satisfaction level. Opinion about satisfaction level Highly satisfied Experience in years Below 5 5 5-10 6 Above 15 14 25 Total

Satisfied

11

23

40

49

Neither satisfied Nor Dissatisfied Dissatisfied

4 4

10 1

1 1

15 6

Highly Dissatisfied Total

21

28

41

90

o 5 6 4 4 2 6 11 10 1 0 14 23 1 1

E 5.83 9.33 3.5 1.4 1.4 7.78 12.4 4.67 1.87 1.24 11.39 18.22 6.83 2.73

0-e -0.83 -3.33 0.5 2.6 0.6 -1.78 -1.4 5.33 -0.87 -1.24 2.61 4.78 -5.83 -1.73

(o-e)2 0.6889 11.0889 0.25 6.76 0.36 3.1684 1.96 28.4089 0.7569 1.5376 6.8121 22.8484 33.9889 2.9929

(o-e)2/e -0.83 -3.33 0.5 2.6 0.6 -1.78 -1.4 5.33 -0.87 -1.24 2.61 4.78 -5.83 -1.73

50

1.82

0.18

0.0324 (o-e)2/e

0.18 -0.41

Degrees of freedom = (C-1) * (R-1) = (3-1)- (5-1) = 8 Table value = 15.5 Feature Department and recognition CV -0.41 DOF 8 TV 15.5 Criteria CV < TV Result Accept the ho

Since the calculated value -0.41 is less than table value at 5% significance level 15.5, so we accept the Ho. It means that there is no significant relation between experience and workers opinion about satisfaction level.

CHAPTER - 4 FINDINGS & SUGGESTIONS


The study was conducted to assess the industrial Relation with reference to MRF (P) Ltd; the factors selected for the study are interpersonal relationship, promotion, welfare, labour-union, labour-management relationship and grievance handling procedure. The study is mainly based on primary data. Interview method was used for the purpose of collecting the data. For this purpose, 10% of the workers in MRF Ltd, Kottayam unit were selected. The size of the sample was 90. The data collected were analyzed with the the variables education and experience of the employees.

FINDINGS

51

Following are the findings of the study.


Out of the total 90 employees selected, 42% of them are found to be above 40 years

of age.
Majority of the employees (83%) are undergraduates. More than half of the employee (40%) are having salary between Rs.10,000-

Rs.15,000 Majority of them have (61%) good opinion about your supervisor. Most of them have friendly (76%) relationship with co-workers.
Their should be bad opinion about the promotion policy (44%).

Majority of the workers are satisfied (36%) the welfare facilities.


Almost (76%) are satisfied with the safety measures.

Majority of the respondents 26% says good 41% says satisfactory 33% says poor about the recognition of their merits
Majority of them says 28% of employees are highly satisfied 44% are satisfied and

17% are neither satisfied nor dissatisfied7% of the employees are dissatisfied and 4% of the employees are highly dissatisfied about the satisfaction level. About (76%) are satisfied with the trade union effectiveness.
Majority of the respondents(53%) have the opinion that punishment policy in their

organization is strict.
About (30%) respondents says good about the grievance handling procedure. Majority ( 67%) of the respondents says yes to the adequate training facilities.

52

Most of the employees (34%) says always they receive proper communication from their superiors. management.

Majority of the respondents (60%) says no to the communication with top

About 50% of employees are strongly agree that the possibility of Workers

Participation in Management in their organization.


There is no significant relation between department which belongs to the

respondents and opinion about the recognition of their merits.


There is no significant relation between experience and workers opinion about their

satisfaction level.

SUGGESTIONS
On the basis of analysis and findings the following suggestions are noted:
While taking major decisions, the management should encourage participation from

employees as representatives in various committees, so that the employees feel that they are involved in decision-making process, it helps to develop more strong relationship between employee and management.
Good Grievance handling is essential because it gives confidence to the workers.

Management should give power to take necessary steps to reduce the grievance of the workers at the grass root level for satisfactory of employee. The company should place suggestion box in every corner of the company to know about the problem of employees
The company should arrange a friendly meeting with employees and management.

53

The company should appoint professionals in employee welfare department. The company should give good training to the employees.

CHAPTER-5 CONCLUSION
The study unveils that MRF Ltd has practically succeeded in launching various schemes in order to develop better industrial relationship. The workers should extend their support and the co-operation to the efforts taken by the management for strengthening the industrial relations. This goal can be achieved by employee friendly policies to improve the labour welfare of the organization. The study sketches the cardinal factors of a manufacturing concern (MRF Ltd) which generates satisfaction to its employees like Interpersonal Relationship, Promotion Welfare Amenities, Labour Unions, Labour-Management Relationships and Grievances handling. The influence of these factors on the industrial Relation has been evaluated with the independent parameters like educational qualification and period of experience of the

54

employees. This was evaluated and measured by formulating the working hypotheses which were tested by employing the statistical tool of chi-square. The results revealed that, the educational qualification and experience of employees do not have influence on the industrial relations. The study has thrown light on the educational qualification of the employees, where majority are undergraduates so they should concentrate more on hiring qualified employees. They also give stress on safety measure

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