Shri Ram Centre for Industrial Relations and Human Resources is collaborating with JSTOR to digitize, preserve and extendaccess to Indian Journal of Industrial Relations.http://www.jstor.orgIndustrial Relations Environment and Work Culture in Public and Private Sector Organisations: A Case Study Author(s): Mamta Panda Source:Indian Journal of Industrial Relations, Vol. 39, No. 4 (Apr., 2004), pp. 465-488Published by:Shri Ram Centre for Industrial Relations and Human ResourcesStable URL:http://www.jstor.org/stable/27767923Accessed: 13-08-2015 06:53 UTCYour use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jspJSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and ConditionsIJIR, Vol. 39, No. 4, April 2004 INDUSTRIALRELATIONSENVIRONMENTAND WORKCULTUREIN PUBLIC ANDPRIVATE SECTOR ORGANISATIONS :A CASESTUDY MamtaPanda The present study aims at examining the relationship between the industrialrelationsenvironmentand workculturein a private and a public sector organisationbelonging to thesame industry. Industrialrelationsenvironmenthasbeenassessedinterms of: structuralmechanisms for industrialrelations management; tradeunionsandcollective bargaining; workers participation in management andunion managementrelationship.Attempt has also beenmadeto identifymajor industrialrelations issues and organisational initiatives forimprovement intheindustrial relationsenvironment. INTRODUCTION The presentstudy is anoutcomeoftheresearchcarriedoutto examine relationship betweenindustrialrelationsenvironmentand workculturein Indian organisations. The study aimedat exploring implications of corporate ideology and workculture for industrial relationsenvironmentin public and private sector organisations. Thecase study involves one public sectorandone private sector organisationbelonging to the same industry andlocatedin the samecultural region inIndia.The public sector organisation will bereferredtoas'A'andthe private sectoras 'J3' forthesakeof maintainingconfidentiality. Ms.MamtaPandais ResearchAssociateatInternational Management Institute, Newbelhi This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and Conditions466Indian Journal of IndustrialRelations Organisation Profile'A' The organisation wasset up in1987inthe eastern part ofIndia withinstalled capacity of 2,30,000 tonnes per annumof metaland is consideredto be a turningpoint in the history of Indian metal industry Ina majorleap forward, it hasnot only addressedthe needfor self-sufficiency inthat metal, butalso given the country a technological edge in producing this strategic metalonthebest of worldstandards. The organisation hasfive multi-locational, well-integrated, segmentsincluding minesand captivepowerplant andhas developedport facilities for export. In additionto the Corporate Officethere are Zonal/Regional Officesat Kolkatta, New Delhi, Chennai, andMumbai. The organisation hasbeen making consistent profit sinceits inception. Thesalesturnover of this profitmakingorganisation was Rs.1506.65croreandthe profit aftertax was248crores during 1998-99.Itisalso a majorexporter ofthis metal.The visionofthe organisation is"tobe an organisation of global repute initsfield"whilethe missionis"Toachieve growth in businesswith globalcompetitiveedge providing satisfaction to the customers, employees, shareholdersand community at large." In recognition oftheinterestsofthe society in securing sustainableindustrial growth,compatible witha wholesome environment, the organisation affirmsthatit assignshigh importance to promotion andmaintenanceofa pollution-free environmentin allits activities.It alsodedicatesitselfto ensure a green andwholesomeenvironmentin allareasofits operations forsustainableindustrial growth andtosetstandardsin environment management. As a major initiativetowards meeting social responsibility, it has adopted a policy of playing a catalytic rolein general improvement of quality of the lifeof peopleliving in the peripheral villages. Inthis regard, various steps havebeentakenin collaborationwiththelocal government andauthorities.The plants ofthe organisationthough locatedin sparselypopulated areas; there wasa direct displacement ofabout600familiesatthetime This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and ConditionsIndustrialRelationsEnvironmentandWorkCulture467 of starting ofthe project. The organisation not only tookadvance measuresto rehabilitateallthe displaced familiesin a well-planned colony withbasic amenities, butalso providedtraining to groups ofaffected persons to improve the scope oftheir employment. The consciouseffortshaveresultedin direct employment of morethan 1800 persons fromaffectedfamiliesinthe organisation. Besides, the organisation'soperations have generated a largevariety of employment andincome opportunities forthe people of adjacent areas. The employeestrength of the organisation at differentunits as on 30/04/2002 was6645 ofwhich1531wereexecutivesand5114 belonged to non-executive category. The Chairman-cum-Managing Directoris theChief Executiveof the organisation whois assisted by the functionalDirectorssuch as Director (Production), Director (Finance), Director (Projects and Technology), andDirector (Personnel and Administration). The producing unitsareheaded by respective General Managers andtheZonal Offices are headed by the Resident Managers. Organisation Profile'B' The organisation wasset up in1959intheeastern part of Indiawithinstalled capacity of 30,000 tonnes per annumwith plannedstart-up of 60,000 t/y ofmetal by July 2002.It is oneof the largest PublicLimited companies in India andis a pioneer in the production ofthe particular metalin the country. With a nation- widenetwork of production facilities, it is engaged in all phases of themetal industry from miningthrough smelting to manufactureof a wide range offinished products. Inthe year 1996-97, capacity was expanded from 24,000t to 30,000t andin the year 1997-98, itachievedthe highest ever production of 28,897 tonnesof primary metal.The organisation asa wholehad a total turnoverofRs.1162.5 crores during 1997-98withrealisationof Rs.71.4croresasnet profit. Thevisionofthe organisation is:"Tobe a premier metal company with a clearfocustobecome globallycompetitive, throughgrowth and technologyupgradation; committedto excellencein quality, serviceandenvironment management." Its This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and Conditions468Indian Journal of IndustrialRelations missionis"To pursue thecreationofvaluefor allits customers, shareholders, employees and society at large." Thestated core valuesofthe organisation are: Integrity, Speed,Simplicity, Seamlessness, Self Confidence, Accountability, 100% Commitment, Concernforthe Community andEnvironmental Responsibility. The employeestrength of the plant during the period of study was 641 ofwhich45 belonged to executive category while596 belonged tothe non-executive category. THEPRESENTSTUDY The sample of the present study consisted of 212 employees of organisation 'A'and145 employees of organisation 'B' belonging to allthelevels including tradeunionleaders. Primary datawere collected throughquestionnaires, observationsas wellas in-depth personal interviewsof a cross-sectionof management, unionand workers representatives. Theinterviews were primarily focused on gaininginsight intothe major industrialrelationsconcernsas perceivedby the employees. Inthe following pages the prevailing industrialrelations environmentinthetwo organisations is beingpresented interms of the following aspects: StructuralMechanismforIndustrialRelations Management TradeUnions Collective Bargaining Workers Participation in Management Union ManagementRelationship Major IndustrialRelationsissues Initiativestakento bring about improvement in theIndustrial Relationsenvironment. This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and ConditionsIndustrialRelations Environmentand Work Culture469 INDUSTRIALRELATIONSENVIRONMENTAT ORGANISATION'A' TheContext The organisation hascertain unique features particularly in the realm of employment policy thathavean impact on the existing workculture.The organisation wasestablishedin1987asthe first majorpublic sector in the region apparently to boost up the subsistence econoiny based on agriculture. The objective of setting up the plant was primarily to generate employment for the local people andraisetheirstandardof living. The plant areacovers39 villages, and despite the employment policy ofthe organisation, which wasto accommodatemaximumnumberofland displaced persons, initially therewere problems of law and orderwhile setting up the plant. The workmen, intheformative years, were largely drawnfrom the local populace in keeping withthe policy of providing employment to displacedpersons. The workmen werenot technically trained nordid they have any experience of working inindustrial organisations. Intheabsenceof exposure toindustrial culture, for workmen, the village stillremains theirmainsource of identity, which contradictsbasic norms governing the employees ofindustrial organisations wherein they seekto identify themselves withthe organisation indicativeoftheircommitmentand belongingness. Ascribedstatusratherthanachievedstatuscontinuesto govern relationships amongst employees. At shop floor level, groups are formed onthebasisof viliages towhichtheworkmen belong. It is notuncommontoseethe whole 'villagepanchayat'operating at shop floors. Inter-grouprivalry basedon villageidentity thereforeis acommon phenomenon.Generating commitmentofthe employees to the overall objectives ofthe organisation remains a distantdream. The employee ascommonstakeholder sharing acommon platform and speaking withonevoiceisto yet to berealised. TheCurrentScenario The problem of segmentation of interestand diffused loyalty is compounded byyet anotherfactorthat hasbeen a naturaloutcome This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and Conditions470Indian Journal of IndustrialRelations oflocalisationofthe workforce.The employees have developed commercialinterestsoftheirownand byusing theirinfluence drawnfromlocal politicalleadershipalongwithpressures exerted onthe management;they havebeenableto obtaincontractsfor supplies,disposal of waste, delivery andthelike. Thishasresulted in displacement oftheir objectives asalsoefforts contributing to the improved effectivenessofthe organisation. Commercialinterests havebecome primary while working towardsthe organisation's objectives hasbecome secondary for such employees. ThePlant Management, inthis kindof scenario, findsitselftorn betweenthe needtomaintainindustrial harmonybeingconstantly underthreatofextra organisational forcesandatthesametime fulfill its obligations to its customers. Thedecisionstaken by the management thushave inevitably to beof compromising nature. Extra-Organisational Forces Unduedemands are placed on management evenonroutine administrationdecisionslike change ofshift of workmen.Thereis a growingfeeling among theworkmenthat those whocan align themselveswith operativepolitical forcescan pursue theirindividual and personal interestsasalsocan getaway withactsof indiscipline at the cost of defined areas ofwork responsibility. Thisleads to the growingtendency to take up theseissuesof favouritismand protection againstorganisational norms, tothe corporateheadquarters. Management atthelocal ./corporate levelthereforeis constantly under pressure to resolveissues arising with a viewto maintaining harmony and meeting the targets. Thishasdriventhemto adopt a short-termorientation enabling the organisation tocontinueto make profit.Long-term concernsfor bringing about improvement in variousdimensionsof organisational effectivenessessentialfor sustained long-termviability ofthe enterprise arethus neglected inthecontextof emergingcompetition. StructuralMechanismforIndustrialRelations Management Atthe plant, theDirector (Personnel & Administration) is the headoftheindustrialrelations machinery ofthe organisation who This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and ConditionsIndustrialRelationsEnvironmentandWorkCulture471 is assisted by theGeneral Manager (HRD & Administration) of the units.Underthe respective General Managers, otherHRD executivesactasthecoordinatorofindustrialrelationsactivities ofthe respective Units.TheHRDexecutivesare also placed inside the plant to mediateincaseof disputes aswellastofacilitate informal grievancehandlingsystem. Besides, a good numberof trainingprogrammes are organised fortheline personnel to actas facilitatorsofindustrialrelations. Conciliation Machinery Thereis noconciliation committee/machinery set up inthe organisation for thesettlementof disputes. Continuousinteraction withthe representatives ofthe unionsand proactivesteps restricts the disputesbeing referredto third party or Government machinery. Mostof the disputes pending before the Courts/Tribunals are the outcomeor manifestationofinter-union rivalry. Grievance Handling Committees Grievance handling committeeshavebeenconstitutedwith equalrepresentatives fromthe employees and management to handletheindividual grievances. Thecommonissuesare first discussedatthe unitlevelin the regular monthly meetings and matters relating to allthe employees ofthe organisation aretaken up at corporate leveland mostly settledat bi-partite level. TradeUnions Being a multiunit public sector, the activities at the plant are examinedinthecontextofthesituation prevailing intheother units.There aretotal24tradeunions existing inthe organisation atits differentunitsandoffices.Outofthem only oneunionhas beenaccorded recognition from 15/05/2002 for a period of 3 years in respect ofthe Refinery Unit.Otherunionsofthe organisation are un-recognised. Duetothe multiplicity ofthe unionsandnon co operation oftheunionsincheckoff system, the membership strength ofthe unionsof differentunitscouldnotbeascertained : moresoduetothedual membership ofindividual employees. However, the membership ofthe unionsat MandR complex could This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and Conditions472Indian Journal of IndustrialRelations beascertainedfromtherecentverificationof membershipthrough secretballotconducted by the StateLabourAuthorities during the monthof May, 2002and accordingly oneunionhasbeenaccorded recognition.Similarly, at Corporate Office though the verification processthrough secret ballothasbeen completed since 01/03/ 2002, theresultshavenotbeen published sincethe matteris subjudice inthe Honourable High Court.Theverificationof membership of theunionsat the plant has not been conducted yet andis atthe handsof StateLabourAuthorities.Forverificationof membership and subsequentrecognition at Mines, a request has beenmadetothe Regional LabourCommissioner (Central), for initiating actioninthis regard. Outofthe total 24trade unions existing in the organisation,barring 10 unions, otherunions are affiliatedto different CentralTradeUnion Organisations. Thedetailsof affiliationsof Unionsareasunder: Collective Bargaining Inabsenceof recognized unions, representatives ofallthe unionsare givenequalscope for participation in variouscommittees as wellas negotiations andcollective bargaining. Applications to theLabour Authority at Central and State level (as appropriate) have been madefor conducting the secretballot towards verificationof membership and subsequentrecognition of unions. Workers Participation in Management Involvementof employees to participate in production and relatedactivitiesincreases productivity as wellas generatesgreater awareness among the employees abouttheirrolein production, processcontrol, waste prevention, safe workingpractices, and improvement in working conditions. Besides, thisalso provides INTUC HMS BMS CITU 5 3 5 1 10Unaffiliated This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and ConditionsIndustrialRelationsEnvironmentandWorkCulture473 an opportunity tothe workersto express theirinnovativeideas and suggestions for improvement inwork systems andotherwork relatedmatters includingsafety, costcontrolandworkrelated welfaremeasures. Inline withthescheme promulgatedby the Central GovernmentonWorkers Participation in Management, the organisation hasintroduced a schemeof Workers Participation in Management, since January 1990 providing forworkers participation at shop floor level, unitleveland apex level. Initially, the participative councilswerenot appreciatedby the unionsand duetoacuteinter-union rivalry theunionsdidnot give their nomineesfor suchcouncils. However, withconstantfollow up, at present, atotal of 41 shop councils are functioning at different units. Experiencing smooth functioning ofthe designedshop councils, furtheractionswouldbetakenforinformationof plant councilsand apex councils. Besidesthe shop councils, the following participativejoint committeeswith equal nominationfrom employees and management are functioning attheunits. Canteen Management Committee Safety Committee WelfareCommittee GrievanceCommittee HouseAllotment Advisory Committee Further, theformationof Quality Circles asa measureof Total Quality movementaswellas encouraging better employee participation hasenrichedthe qualitativeparticipation. Quality Circles The organisation introduced Quality Circlewithaviewto encouraging workmento identify problems andseeksolutionsto these This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and Conditions474Indian Journalof IndustrialRelations problems to bring about improvement in their respective work spheres. Thereis a system of monetary rewardfor those quality circle groups whose suggestions/ solutions are accepted for implementation. RewardScheme Arewardschemeisin operation inthe unitswithan objective to encourage morenumberof suggestions fromthe employees for improvement in operational andrelatedareas thereby encouraging asenseof participation inthe management. Individual employees or the group is rewarded for providing good suggestions. Union ManagementRelationship Relationship between management andthe workmenisfar from being cordial.Lackof respect canbeillustrated through the observationofoneofthe managers: "Onthe shop floor, if there is only onetable and chair, the workerswould occupy it andnotoffer the GETs (Graduate Engineer Trainees) tosit down." Theworkmentendtouseabusive language andthreaten particularly thefirst andmiddle managers ofdire consequences if thelatterdonot yield totheirdemands. Managers therefore tendto maintaindistancefromthe workmenandtheinteraction is kept tothe minimumsoasto ensurethatatleast workis carried out normally: instances of indiscipline, loitering, sleeping during night shifts andthe like are ignored. In the absence of firmaction fromthe management theundesirablebehaviour acquires legitimacyamongst theworkmen. According tooneofthe managers "wefeel helpless if a workercomestothe workplace butdoesnot work, wecannotdo anything". Middlelevel managers often complaint aboutlackof support from top management incase they wanttoenforce disciplineamongst workers.Thereistherefore tendencyamong middle management nottoinitiate any actionas theyperceive that they may not get the support oftheirseniors.Asseenin quite a fewcases, decisions taken by middlelevel managers havebeenreversed by their This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and ConditionsIndustrialRelationsEnvironmentandWorkCulture475 superiors. Thetensionbetweenthe workersandthe management transcends beyond the boundary ofthe workplace andcontinues to persist inthesociallife as well, asoneofthe managersquoted, "insidethe plant weare called'Sir'butoutsidethe plantthey are 'Sirs'. They have money, muscle power and theystay inthesame type of quarter (B type)." These gestures are symbolic ofstrainedandhostile relationships particularly betweenthemiddle managers andthe workers.The hostility also getsexpressed attimes in physical assaultandhumiliation. Although thesecasesarerare nevertheless, they are significant indicatorsof quality of employee relationship. Major IndustrialRelationsIssues In the context of prevailing situation the approach to industrial relationsisbasedonadhocismratherthana longer-term perspective andvision.Nounionhasbeenableto acquire the statusofsole bargainingagent. Itisalsodifficultto verify the membership ofeachofthethree existing unions. Fluidity of membership is acommon phenomenon. Undueinterferencefromlocalleadersmakesthe situationmore complex. The emergence andcontinuanceof village-basedpressure groups nullifies anyattempt to dealwithformalunions.Theundue pressuregenerated by theworkmen working in critical technical productionprocessesmitigatesanyattempt by the unionsin influencing the management.Management thususesitsown prerogative to manage issues relating toindustrialrelationswith informalconsultationwiththe registered unions. Quarters Allotment Dueto non-availability ofrentalaccommodationinthelocal area,the management isunderconstant pressure to provide accommodationto the workmenas wellas its managerialpersonnel. Thenumberof quarters available being limitedin number, attimes thesame type of quarter isallottedtothe workersaswellasto managers whichhasledtoresentment among the employees. This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and Conditions476Indian Journal of IndustrialRelations Employmentof Land Displaced Persons As a public sector undertaking the organisation has giventop priority to providingemployment to the persons whoselandthe organisation has acquired.Despite thefactthat employment was provided to the local people in the initial stages while commissioning the plant, the employment to displaced persons continuesto remain alive issue affecting the industrial relations climatein the plant. Thisissue acquiressignificance inthe light of pressure of downsizing of manpower soasto remain competitive. Formaland informal political pressures are placed onthe managementrelating to employment issues. Cases Pending in VariousCourts The number of Industrial Disputes filedbefore various Courts, Tribunalsaredetailedin Table1.Inallthe cases, the mattersare pending before the authorities for hearing. Claims Allthe cases of claims with regard to fatal accidents have been settled.Thetotalnumbersofclaimswith regard to othernon-fatal accidents pending forsettlement are21.Alltheseclaims are pending withtheCommissionerundertheWorkmen's Compensation Actforfinaldecisionanddisbursement. RestrictivePractices Workersoftenresorttorestrictive practices intheformof un authorised absence,insubordination, loitering outsidetheir respectiveworkplace, not punching their cards, coming late, spending time in the canteen during working hoursandthe like. Role of CorporateOffice Thereis a feeling especially amongst themiddlelevel managers thattheroleofthe Corporate Officein matters relating to indiscipline is not very firm. As quotedby a manager, "ifI enforce discipline,my seniorreversesit".Theresultisa feeling of This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and ConditionsIndustrialRelations Environmentand Work Culture477 helplessness among the managers andcasesof indiscipline areon the rise in the plant. It is alsofelt that the Corporate Office has short-term objectives with regard tomatters relating to maintaining industrialrelationsinthe plant anddoesnot give itsfull support in dealing withsensitivematters. MeasuresUndertakenfor Improvement inIndustrialRelations Environment Proactiveactionsand open communication system facilities mitigating ofthe grievances and disputes.Attempts have been madeto settle the differences at bipartite level before the sameis taken up by third party/conciliation machinery ofthe Government. Thecommunication system as wellas grievancehandling system havebeen improved in ordertoavoid unnecessary interferenceofvariousunions. In orderto promoteresponsible trade unionism, specialized training programmesincludingleadershipdevelopment programmes areconducted.The employees andtradeunion leaders arealsosentinthe productivity missionsand industrialtours. Theco-ordinationcommitteeandcore group from among theunionsarealso encouragedduring thetimeof negotiations for acauseofcommonnature. Informal meetings/get-togethers are organised in orderto wipe outthe feeling of rivalry amongst the employees of variouscentraltradeunion organisations. INDUSTRIALRELATIONSENVIRONMENTAT ORGANISATION 'B' TheContext The organisation has a history of healthy industrialrelations climateandinformaland friendly work atmosphereprevails in This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and Conditions478Indian Journal of IndustrialRelations the organisation. Employees feel they can air their grievances and complaints tothe appropriateauthority without any reservation andthereisconsiderable degree of transparency inthe system. Organisation memberslistento each other, are helpful,cooperative andhard working. StructuralMechanismforIndustrialRelations Management The VicePresidentof the organisation atthe headquarter is assisted by the Manager Personnel of the unit andthe headof the unit whoactas coordinatorsandare responsible forindustrial relationsintheunit.Line managers are also expected toactas facilitatorsofindustrialrelations. Commonissues concerningemployees are brought to the notice of the managementby the unionsin their monthly meetings. The trade unionleadersfind itdifficult tomobilizethe support of the workmen, asthelatterare equally wellinformed.Oftenthetrade unionleaderslooktowards managers for dealing withthenew breed knowledge workers. Management thusoftenfindsitselfin a position to dictatetermstothe unions. TradeUnions Therearetwotradeunions existing inthe organisation; outof them only oneunionhasbeenaccorded recognition. Ideology and Concerns of Trade Unions Theshort-term objectives oftheunionsin general as outlined by the trade unionleadersareto provide benefitstoworkers throughagreement andto wintheirconfidence.The long-term objective is growth of the organisation and employment generation for better employee relations.Themain ideology oftheunionsis the protection of benefitsfor the workersand long-term benefitto the organisation. Theissuesraised by the unionsare moreor less same. Someofthe major issuesraisedare: Out Sourcing Employment This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and ConditionsIndustrialRelationsEnvironmentandWorkCulture479 Benefits Welfare Collective Bargaining Collective Bargaining is doneoncein three years withthe recognized tradeunion.Thesole bargainingagent isthe recognized unionandverificationof membership hasbeendone through secretballot.The major issuesonwhich bargaining is done are: Productivity, PaidLeave Benefit, Welfare Measures, RestrictivePractices. Settlements The periodicity of Settlements is 3 years. The highlights ofmost recentsettlement areasfollows: Reductionof Manpower Productivity Increase Zero Payout Benefit Settlement The agreement in the settlement ishonoured by both the parties almostin letterand spirit except for a few restrictive practices by theunions. Workers Participation in Management Inaccordancewiththescheme on Workers Participation in Management started by the Central Government, the organisation hasset up various shop councilsand joint councilsfor participation of workersin management atthe shop floorlevel.Thesecouncils This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and Conditions480Indian Journal of IndustrialRelations have been highly effective in resolving disputes and bringing about improvement in working conditionsatthe shop floorlevel. Thereareothercommitteessuchasthecommitteeson Environment, Healthand Safety, andtheCanteenCommittee (Table 2). Thesecommittees are highly effectivein regulating matters relatedto the healthand safety at the workplace and protecting the environmentin general,givingencouragement to the employees through incentivesandawards.Thecanteencommitteeensures thatnutritious food is prepared under clean and hygienic conditions inthecanteen. Grievance Handling Forums Grievance handling forumssuchas shop and joint councils and open househavebeenconstituted withthe majorobjectives of reachingagreement fasterandina peaceful mannerandto havedirectinteractionwith top management on decisions.These forums are functioning in a highly effective mannerinthe organisation. Thedetailsof the forums along withtheir major objectives are outlinedin Table3. Safety Safety is a priority concernin the organisation; there area number of committeesand suggestion schemessuch as "Spot the Hazard" whicharein operation. Thesuccessoftheschemes can be measured from the fact that the managementimplemented 97 per cent of the safetysuggestions. For safety and environment, smallenvironment groups are createdtotakecorrectiveaction.CorrectiveAction Request(CAR) consisting of professionals fromdifferentfunctions havebeenformed tomeetand discussthe problemsrelating to environment, safety, hazardousconditionsandthelike. Union Management Relationship Cordialandinformal relationship existsbetweenthe management andthe unions.The management consultsthe unions frequently on issues relating to day-to-dayproblems atthe shop floor, departmental andotherissuesofcommonconcern. Monthly This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and ConditionsIndustrialRelationsEnvironmentandWorkCulture481 meetings areheldwhereinthe departmental issuesaretaken up, besidesthose relating to new equipment,ownership issues, etc. Work Autonomy Employees are given a lot of independence andfreedomin their work spheres in decision-making. Employee Orientation Employees arelookedafter very well.Freecanteen food, good in quality and quantity is provided. Teais provided freeand supplied in un-limited quantity. Non-performers arenotthrownoutoftheir jobs. Thereis a saying that "peoplejoin the organisation toretire." Thereis free powersupply to the employees. Diagnostic testsofbloodandurinefor workersaredone everyyear. Thereis a medical check-up alsofor contractlabourers. Incaseof hospitalization, attendanceallowanceis paid to employees. Major IndustrialRelationsConcerns Although there seemstobe a climate of harmoniousindustrial relationsinthe organisation withcordialandinformal relationship betweenthe management and unions, someofthe major concerns relating to industrialrelationsas perceivedby the top management, unions, middle managers,supervisors andworkersaresummed up in Table4. AdherencetoValues Sincethe plant caterstothe captive market, i.e.theircustomers being internal, the employees are yet to become aware ofthe need This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and Conditions482Indian Journal of IndustrialRelations tomaintain quality andcustomercare.Thevalueshavenotbeen internalizedandthe urgency for inculcating the valuesof quality consciousnessis not being felt. Job Specialisation The organisationadopts the principle ofoneman - one job. Workscheduleis veryrigidly followed.In casean employee is absentor thereis heavy workloadin certain areas, the operators refuse to carry outthe job beyond their scope ofwork.As a result the workhasto becarriedoutonthe basisof overtime payment. On an average overtimeis carriedout 10,000 hoursin a month. Like wisethere is a system of paidholidays andifan employee worksona holiday, heis paid doubletheamount. Employees' responses are calculativein natureas theyalways thinkof some monetary rewardin returnfor additionalworkthat they undertake: employee costin the organisation is oneofthe highest in the country. The employees, while assessing theindustrialrelations environmentinthe organisation, feelthatthe major industrial relationsissuesthe organisationmay encounterin futureare: To get an agreement on higherproductivity norms. Drasticreductiononovertimeto cutcostof employment. Flexiblenormsto be adopted to handlevolatilemarket situation, towhichthe unions may not agree. Strikes, Restrictive Work Practices; Cases of Indiscipline Theindustrialrelationssituationin general in the organisation hasbeen peacefulbarring a fewcasesof strikes, restrictivework practices and indiscipline. The young workershavecome mostly from agriculturalbackground andarenotawareofthe demands ofindustrial organisations andhowto maintain discipline. Absenteeisminthe organisation is high. Thedetailsofsuch practices are presented in Tables 5,6 and7. This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and ConditionsIndustrialRelationsEnvironmentandWorkCulture483 IndustrialRelationsRelatedCases Pending in Courts Thereareno industrialrelationsrelatedcases pending in courts. Role of CorporateOffice Theroleofthe Corporate Officein matters relating to industrial relationsis limited to policy making,sharing business plans and practices, andinterventionsasandwhen necessary. MeasuresUndertakenfor Improvement inIndustrialRelations Environment Industrial relations at this plant can be describedas long term andwell planned. The organisation hastaken a numberof measuresto improve theindustrialrelations climate, productivity and qualitythough anumberofactivitiesthat encourage participation and employee involvement.Someofthese measures are: Total QualityManagement ISOcertification Kaizen Small group activities Participative foralike working/steering committeeand shop councils While TQM hasbeen functioning very effectively, asalso Kaizen, theWorkers Participation in Management needs considerable improvement. The organisation hasalsostarted a programme for multi-skilling for workmenwhichdoesnotseem to have given thedesiredresult.The suggestion schemesinthe organisation are working well. This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and Conditions484Indian Journal of IndustrialRelations Training & Development Regularprogrammes on training are organizedby hiring external faculty to train key workmenandunionexecutivesfor development of mature, professionalleadershipamong workmen. RedeploymentofManpower Change in technology necessitates redeployment of manpower throughretraining. The management hasbeen cooperative inthis regard.Age-profile of workers beingyoungerre-training andre deployment policies are implemented without much difficulty The unionleaderstoofeelthat asboth managers andworkersare young, there is a needto bring them up to the required level of maturity and developtrustingrelationship in them. INDUSTRIALRELATIONSENVIRONMENTAT ORGANISATION'A'AND'B' The description oftheindustrialrelationsenvironmentat organisation 'A'and'B' very clearly indicates: Organisation B has a clear long termindustrialrelations policy withconsiderable degree of autonomy for management of industrialrelationsat unitlevel whereas organisation A, despite its long term intent, is often compelled to give priority to short term objectives.Being a public sector undertaking with multiple units, theunit ofAdoes not seem to enjoy the same degree of autonomy inindustrialrelationsrelatedmatters. At organisation Bthereare only two registered unions, one of whichis recognized andis the sole bargaining agent whilein organisation A, thereareten registered tradeunionswithno recognized union, necessitating anactofbalance amongst conflicting demandsofinterest groups. At organisation B, thereis a cordialandinformal relationship between management andthetrade unions, butin organisation A, the relationship seemsto bestrainedand formalwithrelativelackof mutualtrustand respect. This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and ConditionsIndustrialRelations Environmentand Work Culture485 CONCLUSIONANDIMPLICATIONS It is quite evident from the findings of the study that industrial relations system is largelygovernedbylegal andadministrative framework, in boththe organisations. There is, however, difference in degree betweenthetwo organisations with Organisation B experiencing thisto a lesserextent.Inthe emerging marketdriven economy union managementrelationship willneedto be managed withintheframeworkof norms developed and mutuallyagreed upon by both the parties. Thecurrentindustrialrelationsscenarioat Organisation 'A' may become an impediment tothe organisation's vision; organisation thus needsto addressthe issue pertaining to healthy employee-management interfaceand union-management relationship. Legal andadministrativeorientationthus willhaveto be replaced by normativeorientationtoindustrialrelations.Thefocusneedto shiftfrom competition to mutual collaboration, fromsectarian interestto overall objectives ofthe corporation, from win-loseto win-win strategy, for resolutionof differenceswhichwillnecessitate attitudinal change asalso a shift in collective paradigm of union and management to work together in harmony tocreatea work cultureofexcellence.Intensive trainingprogrammes needto be organised for making the employees aware of theneedfor adoption ofnormative approach, collaborative orientation, competency building and developing holistic perspective. Focus willhaveto shift from jobsecurity to employability. Retraining and redeployment of employees willhaveto be undertaken ona systematic basisfor maintaininghigh morale during layoffs and downsizing andalsoto addressthe concernsofthe union for protection ofinterestsofthe employees. In due course,collective bargaining willhavetobebasedon integrative ratherthan distributive approach.Separate charterof demandsasaninstrument ofcollective bargaining willbecomeredundant necessitating the adoption of jointproblemsolving approach withinthe framework ofthe vision, valuesand strategies andintentofthe organisation. This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and Conditions486Indian Journal of IndustrialRelations Table1: Cases Pending In VariousCourts Authority/Courts underwhichcasesare pending No.ofcases Supreme Court02 High Court26 Industrial Tribunal03 LabourCourt02 Table2: Councils/Committeesandtheir MajorObjectives Nameof Committees MajorObjectives andSub-committees Effectiveness Shop Council Joint Council EOHS Canteen Resolve Dispute at Shopfloor Resolve Dispute at NextLevel Safety, HealthandEnvironment Measures, Safety PrizesDecision Hygiene of Food Upkeep of Canteen Effective Highly Effective Highly Effective Effective Table3: Grievance Handling Forums &their MajorObjectives Nameof forum MajorObjectives Effectiveness Shop and Joint Toreachto agreement faster andin a Highly Effective Council peaceful manner through opendialogue' Open HouseTo havedirectinteraction on top management decisionsandshareaEffective commonlookoutwithall employees Table4: Major IndustrialRelationsConcerns MajorTop UnionsMiddle Supervisors Workers Concerns ManagementManagers This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and ConditionsIndustrialRelationsEnvironmentandWorkCulture487 Low productivity for survival Outsourcing Essential Needof hour ThoughScope forDifficult toWill be union understands the need think people may leave theirside Lossof extra earning productivity improvement is enough Essential implement without change in attitude Essential loserson accountof overtime benefits Will be loserson accountof overtime benefits Table5 : Strikes No.of StrikesDurationofOutcomeof each (since inception) each 1970Once89 days Settled without hamperingproduction Table6:Restrictive WorkPractices Restrictive WorkOccurrenceInwhich Generally onHow they are Practiceslike departments whatissues managed Go-slowetc. 1995Twice M/M,W/S DisciplineBi-partite Settlement This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and Conditions488Indian Journal of IndustrialRelations Table7 : Casesof Indiscipline Numberof Casesof Type of IndisciplineFrequency Indiscipline(past 5 yrs) 1997-21 Mostly Absenteeism Regular (Chronic Cases) 1998-13 Mostly Absenteeism Regular (Chronic Cases) 1999-17 Mostly Absenteeism Regular (Chronic Cases) 2000-23 Absentism,Job Refusal Regular (Chronic Cases) 2001-12 Job RefusalConcentratedto oneArea This content downloaded from 125.20.9.248 on Thu, 13 Aug 2015 06:53:27 UTCAll use subject to JSTOR Terms and Conditions