BBM 503

Best IR practices in manufacturing

Submitted to: Sanjeev Bhatnagar

Submitted by: Geetu th BBM 5th SEM 117516

Contents
Meaning Features Factors of industrial Relation Three actors of industrial Relation Ob ecti!e of industrial Relation Functions of "ndustrial Relation Condition for Congenial "ndustrial Relation #$$roaches to "ndustrial Factors Contributing to harmonious industrial Relation Case Study% B&'( References

")*+STR"#( R'(#T"O)S
MEANING The concept of indu tria! re!ation "ean the re!ation hip #et$een e"p!o%ee and "anage"ent in the da%&to&da% $or'ing of an indu tr%( But the concept ha a $ide "eaning( )hen ta'en in the $ider en e* indu tria! re!ation i a + et of functiona! independence invo!ving hi torica!* econo"ic* ocia!* p %cho!ogica!* de"ographic* techno!ogica!* occupationa!* po!itica! and !ega! varia#!e (, #ccording to *ale ,oder- "ndustrial Relations are a ./hole field of relationshi$ that e0ists because of the necessary collaboration of men and /omen in the em$loyment $rocess of an industry12 #ccording to the "ndustrial (abour Organisation 3"(O4- ."ndustrial Relations deal 5ith either the relationshi$ bet/een the state and em$loyers6 and /or7ers6 organi8ations or the relation bet/een the occu$ational organi8ations themsel!es12 The concept of indu tria! re!ation ha #een e-tended to denote the re!ation of the tate $ith e"p!o%er * $or'er * and their organi ation ( The u#ject therefore inc!ude indu tria! re!ation and joint con u!tation #et$een e"p!o%er and $or' peop!e at their $or' p!ace* co!!ective re!ation #et$een e"p!o%er and their organi.ation and trade union and part p!a%ed #% the State in regu!ating the e re!ation (

F'#T+R'S
1( Indu tria! re!ation are "ain!% the re!ation #et$een e"p!o%ee and the e"p!o%er( 2( Indu tria! re!ation are the outco"e of the practice of hu"an re ource "anage"ent and e"p!o%"ent re!ation ( /( The e re!ation e"pha i on acco""odating other part%0 intere t* va!ue and need ( 1artie deve!op 'i!! of adju ting to and cooperating $ith each other( 2( Indu tria! re!ation are governed #% the % te" of ru!e and regu!ation concerning $or' p!ace and $or'ing co""unit%( 5( The "ain purpo e i to "aintain har"oniou re!ation #et$een e"p!o%ee and e"p!o%er #% o!ving their pro#!e" though grievance procedure and co!!ective #argaining( 6( The govern"ent and hape indu tria! re!ation though indu tria! re!ation po!icie * ru!e * agree"ent * "ediation* a$ard * act etc( 7( Trade 3nion i another i"portant in titution in the indu tria! re!ation ( Trade union inf!uence and hape the indu tria! re!ation through co!!ective Bargaining( 4( Indu tria! re!ation deve!op the 'i!! and "ethod of adju ting to and cooperating $ith each other( 5( The Govern"ent&invo!ve to hape the indu tria! re!ation through !a$ * ru!e * agree"ent * a$ard etc( 16(The i"portant factor of indu tria! re!ation are7 e"p!o%ee and their organi.ation * e"p!o%er and their a ociation and Govern"ent( F#CTORS OF ")*+STR"#( R'(#T"O)S

Indu tria! re!ation are inf!uenced #% variou factor * vi.(* in titutiona! factor * econo"ic factor and techno!ogica! factor ( 1( Institutional Factors: The e factor inc!ude govern"ent po!ic%* !a#our !egi !ation * vo!untar% court * co!!ective agree"ent* e"p!o%ee court * e"p!o%er 0 federation * ocia! in titution !i'e co""unit%* ca te* joint fa"i!%* creed* % te" of #e!ief * attitude of $or' * % te" of po$er tatu etc( 2( Economic Factors: The e factor inc!ude econo"ic organi.ation* !i'e capita!i t* co""uni t "i-ed etc(* the tructure of !a#our force* de"and for upp!% of !a#our force etc( /( Technological Factors: The e factor inc!ude "echani.ation* auto"ation* rationa!i.ation* and co"puteri.ation( 2( Political Factors: The e factor inc!ude po!itica! % te" in the countr%* po!itica! partie and their ideo!ogie * their gro$th* "ode of achieve"ent of their po!icie * invo!ve"ent in trade union etc( 5( Social and Cultural Factors: The e factor inc!ude popu!ation* re!igion* cu to" and tradition of peop!e* race ethnic group * cu!ture of variou group of peop!e etc( 6( Governmental Factors: The e factor inc!ude Govern"enta! po!icie !i'e indu tria! po!ic%* econo"ic po!ic%* and !a#our po!ic%* e-port po!ic% etc(

T&R'' #CTORS OF ")*+STR"#( R'(#T"O)

Three "ajor participant or actor of indu tria! re!ation * vi.(* $or'er and their organi.ation * "anage"ent and govern"ent are identified( 1( Workers and their Organisations: The tota! $or'er p!a% an i"portant ro!e in indu tria! re!ation ( The tota! $or'er inc!ude $or'ing age* educationa! #ac'ground* fa"i!% #ac'ground* p %cho!ogica! factor * ocia! #ac'ground* cu!ture* 'i!! * attitude to$ard other $or'er etc( $or'er 0 organi.ation pro"inent!% 'no$n a trade union
5

p!a% their ro!e "ore pro"inent!% in trade union ( The "ain purpo e of trade union i to protect the $or'er 0 econo"ic intere t through co!!ective #argaining and #% #ringing pre ure on "anage"ent through econo"ic and po!itica! tactic ( Trade union factor inc!ude !eader hip* finance * activitie etc( 2( Employers and their organi!ation: E"p!o%er i a crucia! factor in indu tria! re!ation ( 8e e"p!o%ee the $or'er* pa% the $age and variou a!!o$ance * regu!ate the $or'ing re!ation through variou ru!e * regu!ation and #% enforcing !a#our !a$ ( 8e e-pect the $or'er to fo!!o$ the ru!e * regu!ation and !a$ ( 8e further e-pect the" to contri#ute their re ource to the "a-i"u"( The difference #et$een the de"and of $or'er and e"p!o%er re u!t in indu tria! conf!ict ( Nor"a!!% e"p!o%er have higher #argaining po$er than $or'er ( But their #argaining po$er i under"ined $hen co"pared that to trade union ( E"p!o%er fro" their organi.ation to e9uate :or e-ce!; their #argaining po$er $ith that of trade union ( The e organi ation protect the intere t of the e"p!o%er #% pre uring the trade union and govern"ent( /( Government: Govern"ent p!a% a #a!ancing ro!e a a cu todian of the nation( Govern"ent e-ert it inf!uence on indu tria! re!ation through it !a#our po!ic%* indu tria! re!ation po!ic%* i"p!e"enting !a#our !a$ * the proce organi ation( OB9'CT":'S OF ")*+STR"#( R'(#T"O)S The pri"ar% o#jective of indu tria! re!ation i to "aintain congenia! re!ation #et$een e"p!o%ee and e"p!o%er( The other o#jective are7
6

of conci!iation and

adjudication #% p!a%ing the ro!e of #oth e"p!o%ee 0 organi ation and e"p!o%er 0

1( To pro"ote and deve!op congenia! !a#our "anage"ent re!ation < 2( To enhance the econo"ic tatu of the $or'er #% i"proving $age * #enefit and #% he!ping in evo!ving ound #udget< /( To regu!ate the production #% "ini"i.ing indu tria! conf!ict through tate contro!< 2( To ocia!i.e indu trie #% "a'ing the govern"ent a an e"p!o%er< 5( To provide an opportunit% to the $or'er to have a a% in the "anage"ent and deci ion& "a'ing< 6( To i"prove $or'er 0 trength $ith a vie$ to o!ve their pro#!e" through "utua! negotiation and con u!tation $ith the "anage"ent< 7( To encourage and deve!op trade union in order to i"prove the $or'er 0 trength< 4( To avoid indu tria! conf!ict and their con e9uence < 5( To e-tend and "aintain indu tria! de"ocrac%(

F+)CT"O)S OF ")*+STR"#( R'(#T"O)S

=unction of indu tria! re!ation inc!ude7 1( >o""unication i to #e e ta#!i hed #et$een $or'er and the "anage"ent in order to #ridge the traditiona! gu!f #et$een the t$o( 2( To e ta#!i h a rapport #et$een "anager and the "anaged( /( To en ure creative contri#ution of trade union to avoid indu tria! conf!ict * to afeguard the intere t of the $or'er on the one hand and the "anage"ent on the other hand* to avoid unhea!th%* unethica! at"o phere in an indu tr%( 2( To !a% do$n uch con ideration $hich "a% pro"ote under tanding* creativit% and cooperativene to rai e indu tria! productivit%* to en ure #etter $or'er 0 participation( 5( Good !a#our&"anage"ent re!ation depend on e"p!o%er and trade union0 capacit% to dea! $ith their "utua! pro#!e" free!%* independent!% and re pon i#!%(
7

6( The trade union and the e"p!o%er and their organi ation hou!d #e intere ted in re o!ving their pro#!e" through co!!ective #argaining and if nece ar% $ith the a i tance of proper govern"ent agenc%( 7( )or'er and e"p!o%er 0 organi.ation hou!d #e de irou of a ociating $ith govern"ent agencie ta'ing into con ideration $ith genera!* ocia!* pu#!ic and econo"ic "ea ure affecting e"p!o%er and $or'er re!ation ( CO)*"T"O)S FOR CO);')"#( ")*+STR"#( R'(#T"O)S The e ta#!i h"ent of good indu tria! re!ation depend on the con tructive attitude on the part of #oth the union and the "anage"ent( The con tructive attitude in it turn depend on a!! the #a ic po!icie and procedure !aid do$n in an% organi.ation for the pro"otion of hea!th% indu tria! re!ation ( It depend on the a#i!it% of the e"p!o%er and trade union to dea! $ith their "utua! pro#!e" free!%* independent!% $ith re pon i#i!it%( The% hou!d have their faith in co!!ective #argaining rather than in co!!ective action( It i ver% difficu!t to pro"ote and to "aintain ound indu tria! re!ation ( >ertain condition hou!d e-i t for the "aintenance of har"oniou indu tria! re!ation ( The% are7

1( E"istence o# Strong$ %ell&Organised and 'emocratic Employees (nions: Indu tria! re!ation $i!! #e ound on!% $hen the #argaining po$er of the e"p!o%ee 0 union i e9ua! to that of "anage"ent( A trong trade union can protect the e"p!o%ee 0 intere t re!ating to $age * #enefit * jo# ecurit% etc( 2( E"istence o# Sound and Organised Employers (nions: The e a ociation are he!pfu! for the pro"otion and the "aintenance of unifor" per onne! po!icie a"ong variou organi.ation and to protect the intere t of $ea' e"p!o%er (

/( Spirit o# Collective )argaining and %illingness to *esort to +oluntary Organisation: The re!ation hip #et$een e"p!o%ee and the e"p!o%er $i!! #e congenia! on!% $hen the difference #et$een the" are ett!ed through "utua! negotiation and con u!tation rather than through the intervention of the third part%( >o!!ective #argaining i a proce through $hich e"p!o%ee i ue are ett!ed through "utua! di cu ion and negotiation through give and ta'e approach( If the i ue are not ett!ed through co!!ective #argaining the% hou!d #e referred to vo!untar% ar#itration #ut not to adjudication in order to "aintain congenia! re!ation (

2( ,aintenance o# Industrial peace: 1er"anent indu tria! peace in an organi.ation i "o t e entia! $hich can #e en ured through the fo!!o$ing "ea ure 7 Machiner% for prevention and ett!e"ent of indu tria! di pute ( It inc!uded !egi !ative and non&!egi !ative "ea ure ( 1reventive "ea ure inc!ude $or' co""ittee * tanding order * $e!fare officer * hop counci! * joint counci! and joint "anage"ent counci! ( Sett!e"ent "ethod inc!ude vo!untar% ar#itration* conci!iation and adjudication( Govern"ent hou!d #e provided $ith the authorit% of ett!ing the indu tria! di pute $hen the% are ett!ed #et$een the t$o partie and a! o #% vo!untar% ar#itration( 1rovi ion for the #ipartite and tripartite co""ittee in order to evo!ve per onne! po!icie * code of conduct* code of di cip!ine etc( 1rovi ion for the variou co""ittee to i"p!e"ent and eva!uate the co!!ective #argaining agree"ent * court order and judge"ent * a$ard of the vo!untar% ar#itration etc( #<<RO#C&'S TO ")*+STR"#( R'(#T"O)S
5

Indu tria! re!ation i ue are co"p!e- and "u!tifariou ( The% are the re u!t of ocia!* cu!tura!* econo"ic* po!itica!* and govern"enta! factor ( An econo"i t interpret indu tria! conf!ict in ter" of i"per ona! "ar'et force * a p %cho!ogi t interpret in ter" of i"per ona! "ar'et force * a p %cho!ogi t interpret in ter" of individua! goa! * and "otive etc( i"i!ar!%* a ocio!ogi t interpret fro" hi o$n vie$point( But the tud% of indu tria! re!ation hou!d #e fro" the "u!tidi cip!inar% approach(

1( Psychological -pproach to Industrial *elations: According to p %cho!ogi t * i ue of indu tria! re!ation have their origin in the difference in the perception of "anage"ent* union and ran' and fi!e $or'er ( The perpetua! difference ari e due to difference in per ona!itie * attitude * etc( Si"i!ar!% factor !i'e "otivation* !eader hip* group goa! ver u individua! goa! etc(* are re pon i#!e for indu tria! conf!ict ( 2( Sociological -pproach to Industrial *elations: Indu tr% i a ocia! $or!d in "iniature( ?rgani ation are co""unitie of individua! and group $ith differing per ona!itie * educationa! and fa"i!% #ac'ground * e"otion * enti"ent etc( The e difference in individua! create pro#!e" of conf!ict and co"petition a"ong the "e"#er of individua! ociet%( /( .uman *elations -pproach to Industrial *elations: 8u"an re ource are "ade up of !iving #eing #ut not "achine ( The% need freedo" of peech* of thought* of e-pre ion* of "ove"ent and of contro! over the ti"ing ( Thi approach i"p!ie that the re!ation hip #et$een e"p!o%ee and e"p!o%er a #et$een t$o hu"an #eing ( The ter" hu"an re!ation inc!ude the re!ation hip during the out of e"p!o%"ent ituation ( 2( Gandhian -pproach to Industrial *elations: Mahat"a Gandhi0 vie$ on indu tria! re!ation are #a ed on hi funda"enta! princip!e of truth* non vio!ence and non @
16

po e ion( 3nder the princip!e pf non&vio!ence and truth* Gandhi "eant a peacefu! co&e-i tence of capita! and !a#our( Tru tee hip i"p!ie cooperation #et$een capita! and !a#our( Gandhi advocated the fo!!o$ing ru!e to re o!ve indu tria! conf!ict 7 )or'er action( Trade union hou!d decide to go on tri'e ta!'ing #a!!ot authorit% fro" a!! hou!d ee' redre a! of rea ona#!e de"and through co!!ective

$or'er and re"ain peacefu! and u e non& vio!ent "ethod ( )or'er Stri'e )or'er )or'er hou!d avoid tri'e to the po i#!e e-tent( hou!d #e re orted to on!% a a !a t report( hou!d avoid for"ation of union in phi!anthropica! organi ation( hou!d ta'e recour e to vo!untar% ar#itration to the po i#!e e-tent

$here direct ett!e"ent fai!ed( Factors Contributing for &armonious "ndustrial Relations 1( There i a fu!! acceptance #% "anage"ent of the co!!ective #argaining proce the "anage"ent( 2( The union fu!!% accept private o$ner hip and operation of the indu tr%< it recogni.e that the $e!fare of it "e"#er depend upon the ucce fu! operation of the #u ine ( /( The union i trong* re pon i#!e and de"ocratic( 2( The co"pan% ta% out of the interna! affair of the union< it doe not ee' to a!ienate the $or'er0 a!!egiance to heir union( 5( Mutua! tru t and confidence e-i t #et$een the partie ( There have #een no eriou ideo!ogica! inco"pati#i!itie (
11

and

of unioni " a an in titution( The co"pan% con ider a trong union a an a et to

6( Neither part% to #argaining adopt !ega!i tic approach to the o!ution of pro#!e" of re!ation hip( 7( Negotiation are pro#!e"&centered( More ti"e i pro#!e" than on defining a# tract princip!e ( 4( There are $ide pread union&"anage"ent con u!tation and high!% deve!oped infor"ation haring( 5( Grievance are ett!ed pro"pt!% in the !oca! p!ant* $herever po i#!e( There i f!e-i#i!it% and infor"a!it% $ithin the procedure( 16(The environ"enta! factor do not #% the" e!ve cau e peace #ut the% create condition to deve!op it( The attitude and the po!icie of the partie * the per ona!it% of their !eader and their techni9ue * #ring a#out good re!ation ( pent on the da%&to&da%

Case Study = Bhel Com$any

Bharat &ea!y 'lectricals (imited :B&'(; i one of the o!de t and !arge t tate&o$ned engineering and "anufacturing enterpri e in India( The GroupA vi ion i to #e A )or!d& >!a Engineering Enterpri e >o""itted to Enhancing Sta'eho!der Ba!ue( B&'( initiati!es regarding em$loyee relations- em$loyee de!elo$ment and gro/th1 1( 'm$loyee relations:% B8EC i of the opinion that peop!e are it greate t a et and ha therefore adopted the #e t practice for it e"p!o%ee ( 2( Trade +nions: & In B8EC D8ANSI* there are "ain!% 7 trade union $hich are in contract $ith the "anage"ent for the $or'er en!i t"ent(An% e"p!o%ee can #eco"e a "e"#er of the 3nion( 1( A!! i ue re!ated to $or'"en are di cu ed $ith the 3nion( The $or'er e!ected repre entative are given off ti"e for their "eeting ( The e organi.ation enhance jo# ecurit% of e"p!o%ee * he!p in increa ed $or'er participation in "anage"ent and give !a#our a dignified ro!e in a ociet%( >o!!ective #argaining i ue are di cu ed $ith recogni.ed union at different !ocation on a regu!ar #a i ( /( ;rie!ance &andling <rocedure:%
12

ob ecti!e The o#jective of the procedure i to redre and ett!e the grievance a ear!% a po i#!e to it point of origin #% creating an environ"ent $hich hare fe ta! a cu!ture of candidate and faith o that e"p!o%ee can vent their grievance $ithout an% fear of victi"i.ation and repri a!( In order to achieve the a#ove aid o#jective the fo!!o$ing princip!e ha!! #e fo!!o$ed @ Be given a fair hearing #% their i""ediate uperior concerning an% grievance the% "a% $i h to rai e( The% can free to appea! to a "ore enior "anager again t the deci ion "ade #% i""ediate uperior( Ma% #e acco"panied #% a fe!!o$ e"p!o%ee of their o$n choice $hen rai ing the grievance or appea!ing again t a deci ion( <rocedure aggrieved e"p!o%ee ha!! fir t pre ent hi grievance ver#a!!% to hi i""ediate uperior (An an $er ha!! #e given #% hi i""ediate uperior $ithin 24 hour of pre entation of the co"p!aint (E"p!o% "a% #ring a!ong $ith hi" a fe!!o$ e"p!o%ee If e"p!o%ee i not ati fied $ith the redre a! fro" i""ediate uperior $ithin the pre cri#ed ti"e (he or he can $a!' hi or her grievance in $riting (hi or her co"p!aint ha!! #e redre a! $ithin three da% #% hi 8?E ( In ca e e"p!o%ee doe not get an% re pon e fro" hi or her 8?E $ithin three da% of pre enting of co"p!aint or he i not ati fied $ith the redre a! given to hi" then he "a% #ring for$ard hi grievance to a grievance co""ittee $hich "a% con i t of three head of depart"ent (Thi ha!! con i t of per onne! head *concerned depart"ent head of e"p!o%ee and other re!ated depart"ent0 8?E the co""ittee ha!! "a'e reco""endation $ithin even da% to "anage"ent regarding hi or her grievance in ca e of an% difference of opinion a"ong t "e"#er of co""ittee the grievance can #e p!aced #efore top "anage"ent for fina! deci ion (the top "anage"ent ha to ta'e deci ion on an% ca e regarding grievance pre ented to it in three da% (Top "anage"ent can "a'e an% a"end"ent to the deci ion of the co""ittee( Thi grievance hand!ing procedure ha!! #e revie$ed on ha!f %ear!% #a i #% a co""ittee con i ting of are head of depart"ent(

>1 &igher Studies7&

Monetar% incentive to e"p!o%ee ac9uiring higher technica! 9ua!ification in a re!ated fie!d( 51 (abor Management Relations: & B8EC ha an i"pecca#!e record of Indu tria! 8ar"on%( In 2612 the
1/

co"pan% ce!e#rated 56 %ear of "utua! co&operation coordination and under tanding #et$een the Manage"ent and the 3nion( ?1'm$loyee <artici$ation in *ecision ma7ing7 & B8EC i a pioneer in the area of joint con u!tation $hich i in p!ace in B8EC for !a t 56 %ear ( Thi i a uni9ue % te" in $hich #oth "anage"ent and e"p!o%ee repre entative con u!t each other at a!! !eve! on "atter re!ating to the progre and pro perit% of the organi.ation( @1)on = *iscrimination at 5or7 $lace:% B8EC i an e9ua! opportunit% e"p!o%er and doe not di cri"inate on the #a i of race* ca te* re!igion* co!or* ance tr%* "arita! tatu and nationa!it%( Bio!ation of e9ua! opportunit% po!ic% i redre ed though grievance redre a! "echani " and Ethic >oun e!or( 5'(F#R' SC&'M'S ") B1&1'1(1- 9&#)S" A1 5'#B(, R'ST a4 $ea'!% re t i given to tho e e"p!o%ee $ho attend their dut% three da% avai!ed !eave $ith pa% at !ea t for three da% ( 8o$ever !eave $ithout pa% $i!! not #e counted in three da% ( b4 Ne$!% appointed e"p!o%ee !o e their fir t $ee'!% re t in the ca e the% jointed their dut% and don0t co"p!ete a#ove condition of re t( c4 >o"pen ator% !eave hou!d #e avai!ed in /6 da% again t hi $ee'!% re t $or'ing( C1 S#(#R, #)* 5#;'S a4 8FA paid to ever% entit!ed e"p!o%ee $ho i not a# ent "ore than even da% * at fu!! rate( If he a# ence for "ore than even da% than 8FA i given on pro&rata #a i ( b4 Ba ic * EA* >A *>EA *CTA* Medica! *)A * pecia! a!!o$ance are #eing paid on #a i on pa%a#!e da% ( 31 M'*"C#( #((O5)C'
12

Medica! i "a-i"u" upto F 25*666 1A or F (2666 1M( >1 O:'R T"M' Eou#!e ?T i paid to a!! $or'er and other entit!ed e"p!o%ee again t $or'ing nationa!G fe tiva! ho!ida% on #a ic HEA:EA if app!ica#!e; 51 *'#T& R'("'F F+)* F 76666 i paid to dependent of decrea ed of per"anent e"p!o%ee( An a"ount ha #een fi-ed according!% to grade and $or'er contri#ute at r 66 at the ti"e of uch "i happening( A o"e of F /5666 i contri#uted #% the "anage"ent and F /5666 #% the e"p!o%ee ( ?1 M#RR"#;' #))":'S#R, Marriage anniver ar% for a!! head of depart"ent and their re pective 2 I> are a! o ce!e#rated in B8EC e"p!o%ee c!u#( A parit% and gift i given to the concerned e"p!o%ee( on

15

References
///1bhelher$1com "ndustrialrelations1nau7rihub1com ///1slideshare1net ///1bhel hs1co1in

16

17