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A STUDY OF INDUSTRIAL RELATIONS
AT M/s PERAMBALUR SUGAR MILLS LTD, ERAIYUR,
PERAMBALUR Dt.
Thesis submitted in
Partial fulfillment for the award of DEGREE OF DOCTOR OF PHILOSOPHY
IN MANAGEMENT
By A. XAVIER AMALADOSS Register No. J 546100014
Under the Supervision and Guidance of Dr. R. MATHIVANAN, M.Com., M.Phil., MBA., D.L.L., Ph.D.,
Director, UGC – Academic Staff College, Bharathiar University, Coimbatore
VINAYAKA MISSIONS UNIVERSITY SALEM, TAMILNADU, INDIA
December 2015
VINAYAKA MISSIONS UNIVERSITY
CERTIFICATE BY GUIDE
I, Dr. R.MATHIVANAN, M.Com., M.Phil., MBA., D.L.L.,
Ph.D., certify that the thesis entitled “A STUDY ON INDUSTRIAL
RELATIONS AT M/s PERAMBALUR SUGAR MILLS LTD,
ERAIYUR, PERAMBALUR DISTRICT” submitted for the DEGREE
OF DOCTOR OF PHILOSOPHY by Mr. A. XAVIER AMALADOSS is
a record of research work carried out by him during the period from
June 2005 to December 2015 under my Guidance and Supervision.
This work has not formed the basis for the award of any other
Degree, Diploma, Associate –ship or Fellowship titles in this or any
other University or other similar institutions of higher learning.
Place: Coimbatore Signature of Supervisor with
Designation
Date : 5th December 2015
VINAYAKA MISSIONS UNIVERSITY
DECLARATION CERTIFICATE
I, A.XAVIER AMALADOSS, declare that the thesis entitled
“A STUDY ON INDUSTRIAL RELATIONS AT M/s PERAMBALUR
SUGAR MILLS LTD, ERAIYUR,PERAMBALUR DISTRICT”
submitted by me for the DEGREE OF DOCTOR OF PHILOSOPHY
is a record of research work carried out by me during the period from
June 2005 to December 2015 under the guidance of Dr.
R.MATHIVANAN, M.Com., M.Phil., MBA., D.L.L., Ph.D., and has not
formed the basis for the award of any Degree, Diploma, Associate-
ship or Fellowship titles in this or any other University or other similar
institutions of higher learning.
Place: Perambalur Signature of the
candidate
Date : 5 December 2015
ACKNOWLEDGEMENT
I wish to express my sincere gratitude and indebtedness to the Chancellor and
Registrar of Vinayaka Missions University for having permitted me to carry out this
research work.
I place on record my deep sense of gratitude to my Supervisor and Guide,
Dr. R. Mathivanan, M.Com. M.Phil, MBA. Director, UGC – Academic Staff College,
Bharathiyar University, Coimbatore. It has been a pleasure working with him learning
from his vast experience. He has been a constant source of inspiration and
encouragement to me.
My sincere thanks are due to Prof. Dr. Rajendran, M.A (Psy), Ph.D., (Con.
Beh) for his encouragement during the course of my research work. His incomparable
teaching experience is enlightening so many teachers.
I place on record my sincere thanks to Mr. John Ashok, Vice Chairman,
Thanthai Hans Roever group of Institutions for his belief on me and his continuous
encouragement.
I have to thank the love and concern of our son Mr. N. M. Rajen Prabakar,
M.Com., B.L., M.D, Shri Mangala Rocks Pvt. Ltd, Krishnagiri who called me a doctor
long back and insisted on completing the work. I take pleasure in thanking my friends
Dr. R. Rani Hema Malini and Dr. Partheeban, St. Peter’s University, who are my
source of inspiration.
I will fail in my duty if I don’t thank my wife Ms. R. Flora Sahayamary, M.A,
MBA, M.Ed, M.Phil, without whom I might not have completed this work. My thanks are
due to my sons X. Prince Mejel, B.Tech (IT) and X. Prabu Mejel, B.Sc (VISCOM)
for their Love that paves my path.
Amal
TABLE OF CONTENTS
CONTENT Page no
CHAPTER I INTRODUCTION
1.1 Introduction 1
1.2 Concept & Evolution of Industrial Relations 3
1.3 Industrial Relations 8
1.4 Industrial Relations in developed countries 11
1.5 Industrial Relations in India 15
1.6 Objectives of Industrial Relations 17
1.7 Indicators of Industrial Relations 19
1.7.1 Indicators of poor Industrial Relations 19
1.7.2 Indicators of healthy Industrial Relations 20
1.8 Meaning of the key terms 21
1.9 Progress of Sugar Industries in India 23
1.10 Progress of Sugar Industries in Tamilnadu 40
1.11 Rationale of the study 46
1.12 Summary 48
CHAPTER II REVIEW OF LITERATURE
2.1 Workers’ Participation in Management 49
2.2 Communication Process 60
2.2.1 Development of Organisational Communication 61
2.2.2 Cross Functionality 63
2.3 Welfare Measures 68
2.4 Trade Union Relations 91
2.5 Grievance Mechanism 110
Summary 116
CONTENT Page no
CHAPTER III NEED FOR THE STUDY & COMPANY PROFILE
3.1 Statement of the Problem 118
3.2 A picture of Perambalur District 120
3.3 M/s Perambalur Sugar Mills Ltd 122
3.4 Sugar Policy 125
3.5 Taxes 128
3.6 By products 131
3.7 Divisional offices 132
3.8 Welfare Measures for Cane growers 134
3.9 Description of Sugar Manufacturing 136
3.10 System of work 138
3.11 Welfare Measures for Employees 139
CHAPTER IV OBJECTIVES & HYPOTHESES
4.1 Scope of the study 148
4.2 Objectives of the study 148
4.3 Hypotheses 149
CHAPTER V RESEARCH METHODOLOGY
5.1 Research design 152
5.2 Sources of data 153
5.3 Variables used 154
5.4 Pilot Survey and Reliability test 154
5.5 Sampling Design 155
5.6 Analytical tools 156
5.7 Chapter Ordering 158
5.8 Limitations of the study 159
CONTENTS Page No
CHAPTER IV RESULTS AND DISCUSSION
6.1 Percentage Analysis Socio-demographic value 160
6.1.1 Sex 161
6.1.2 Age 162
6.1.3 Marital Status 163
6.1.4 Domicile 164
6.1.5 Designation 165
6.1.6 Qualification 166
6.1.7 Experience 167
6.1.8 Monthly Income 168
6.2 Analysis of Variables 169
6.2.1 Workers’ Participation in Management 170
6.2.1 Communication Process 171
6.2.3 Welfare Measures 172
6.2.4 Trade Union Relations 173
6.2.5 Grievance Mechanism 174
6.3 Inferential Analysis 175
CHAPTER VII FINDINGS AND CONCLUSIONS
7.1 Distribution of Demographic variables 206
7.2 Distribution of Employee Profile variables 206
7.3 Distribution of Independent variables 207
7.4 Suggestions 215
7.5 Scope for further Research 219
7.6 Conclusion 220
LIST OF TABLES
Table no
Title Page No
1.1 Production sugar & Molasses 34 1.2 Cane acreage in India 37 1.3 Yield of cane in India 38 1.4 Sugar production from sugarcane in India 39 1.5 Cane acreage in Taminadu 41 1.6 Yield of cane in Tamilnadu 43 1.7 Sugar production in Tamilnadu 44 1.8 Sugar factories operating in Tamilnadu 45 3.1 Area of Operation 1233.2 Cane price paid in the period 2001 – 2011 1263.3 Cane registration, crushing and sugar recovery 1336.1.1 Frequency distribution of Male and Female employees 161 6.1.2 Frequency distribution of Age-wise data of employees 1626.1.3 Frequency distribution of Married and unmarried 1636.1.4 Frequency distribution of Domicile of employees 1646.1.5 Frequency distribution of different designation of
employees 165
6.1.6 Frequency distribution of qualification of employees 166 6.1.7 Frequency distribution of Experience of employees 1676.1.8 Frequency distribution of income data of employees 1686.2.1 Level of satisfaction on Workers’ Participation 1706.2.2 Level of satisfaction on Communication process 1716.2.3 Level of satisfaction on Welfare Measures 172 6.2.4 Level of satisfaction on Trade Union Relations 1736.2.5 Level of satisfaction on Grievance Mechanism 1746.3.1 Perceptions of Male and Female employees with
respect to Industrial Relations showing Mean, SD, t- significant level of mean
175
6.3.2 Perceptions of Married and unmarried employees with respect to Industrial Relations showing Mean, SD, t- significant level of mean
176
6.3.3 Perceptions of Rural and urban employees with respect to Industrial Relations showing Mean, SD, t- significant level of mean
177
6.3.4 ANOVA for Significant Difference between Age Group with Respect to Dimension of IR
178
6.3.5 ANOVA for Significant Difference between Years of Experience with Respect to Dimension of IR
179
6.3.6 ANOVA for Significant Difference between Income level with Respect to Dimension of IR
180
Table no
Title Page No
6.3.7 Chi-square table for Workers’ Participation and Communication
181
6.3.8 Chi-square table for Workers’ Participation and Welfare measures
182
6.3.9 Chi-square table for Workers’ Participation and Trade union relations
183
6.3.10 Chi-square table for Workers’ Participation and Grievance Mechanism
184
6.3.11 Chi-square table for Communication and Welfare Measures
185
6.3.12 Chi-square table for Communication and Trade Union Relations
186
6.3.13 Chi-square table for Communication and Grievance Mechanism
187
6.3.14 Chi-square table for Welfare Measures and Trade Union Relations
188
6.3.15 Chi-square table for Welfare Measures and Trade Grievance Mechanism
189
6.3.16 Chi-square table for Trade Union Relations and Grievance Mechanism
190
6.3.17 Friedman test for significant difference between mean ranks towards opinion on Workers’ Participation in Management
191
6.3.18 Friedman test for significant difference between mean ranks towards opinion on Communication Process
193
6.3.19 Friedman test for significant difference between mean ranks towards opinion on Welfare Measures
194
6.3.20 Friedman test for significant difference between mean ranks towards opinion on Trade Union relations
196
6.3.21 Friedman test for significant difference between mean ranks towards opinion on Grievance Mechanism
198
6.3.22 Correlation Coefficient between Dimensions of
Industrial Relations
199
6.3.23 Multiple Regression Analysis 203
List of Diagrams No Title Page no 6.1.1 Pie chart of Male and Female
Employees percentage 161
6.1.2 Pie chart of Age-wise Employees percentage
162
6.1.3 Pie chart of married and unmarried Employees percentage
163
6.1.4 Pie chart of rural and urban Employees percentage
164
6.1.5 Pie chart of designation wise Employees percentage
165
6.1.6 Pie chart of Qualification-wise Employees percentage
166
6.1.7 Pie chart of Experience-wise Employees percentage
167
6.1.8 Pie chart of Income-wise Employees percentage
168
1
CHAPTER I
INTRODUCTION
1.1 INTRODUCTION
The Industrial revolution, which took place during the 18th & 19th
centuries, had played a major role in the concept of industrial relations.
The master-servant relationship in a concern was totally disturbed. In
the later years acceleration in industrialization paved the way for a very
complex and impersonal relations between the workers and employers.
The workers were treated as a mere commodity that could be easily
exchanged. The workers were treated in an ill-mannered fashion, poor
salary, unduly long hours, unhealthy working conditions marked the life
of the workers.
After the First World War a tremendous change took place in
the industrial relations. The workers were retaliating to attain their
demands, resulting in strikes and lockouts on both sides. The
government did not take any necessary steps to solve the problems
that arose. The Royal commission on Labour observed in 1921 “the
attempt to deal with unrest must begin rather with creation of an
atmosphere unfavorable to disputes than machinery for their
settlement”. In continuation of the above, it is felt that, Labour –
management relations play a predominant role and take part as a vital
function in the management of modern corporate administration. . For
2
every nation to achieve the normal rate of industrial progress, among
other factors, the most important is the continuation of healthy labour-
management relations. Healthy labour-management relations indicate
“A situation when labour and management work mutually and
pleasantly towards their socially desirable goals”
In Edwin Flippo’s view the term ‘Industrial Relations’ refer to
all type of relationships that exist in an industrial enterprise, and they
constituted by employer and employees.”
The most exhaustive description so far available in industrial
relations is in Richardson’s “An introduction to the study of Industrial
relations published in 1954. He states that “the subject of industrial
relation include individual relations and joint consultations between
employers and work place at the place of work, collective relations
between employers and their organisations and the trade unions and
the part played by the state in regulating these relations” He points out
that there are three aspects of industrial relations namely individual
relations, collective relations and intervention by the State.
Hence, the researcher has selected the topic Industrial
Relations in a rural place Perambalur Tamilnadu for his present
research. The study was done in the period 2001 to 2011.
3
1.2. CONCEPT AND EVOLUTION OF INDUSTRIAL RELATIONS
During the pre-independence period, industrial relations policy of
the British Government was one of laissez faire (unautocratic) and also
selective intervention. There were hardly any labour welfare schemes.
After independence, labour legislations have formed the basis for
industrial relations and social security. These legislations have also
provided machinery for bipartite and tripartite consultations for
settlement of disputes. Soon after independence, the Government at a
tripartite conference in December 1947 adopted the Industrial Truce
Resolution.
Several legislations were implemented to maintain industrial
peace and harmony such as The Employees State Insurance Act, 1948,
The Employees Provident Fund and Miscellaneous Act, 1952, and The
Minimum Wages Act, 1948, The Payment of Bonus Act, 1965 and The
Gratuity Act, 1972, etc., in the different years. In the early 1990s the
process of economic reforms was set in motion when the government
introduced a series of measures to reduce control on industries,
particularly large industries. The workers have opposed economic
liberalization policy for fear of unemployment while entrepreneurs have
welcomed it with the hope of new opportunities to improve Indian
industries. The new economic policy has directly affected industrial
relations in the country because the government has to play a dual role,
one for protecting the interest of the workers, and the other to allow a
4
free interplay of the market forces. Economic reforms have created
competitive markets, by removing barriers to entry through
liberalization, globalization and privatization concept. Fiscal stabilization
has resulted in drastic reduction in budgetary support to the public
sector commercial enterprise while exposing these enterprises to
increase competitions from private sector.
Labour welfare is being defined in several ways and is therefore
understood in various ways in various countries. A precise and
comprehensive definition of the term is yet to be made. Arthur James
Todd aptly remarks, “A series of sharply divers opinions exist on the
motives and merits of industrial welfare work”.
The oxford dictionary defines labour welfare as “effort to make
life worth living for workers”. Chambers dictionary defines welfare as
“A state of faring or doing well, freedom from calamity, enjoyment of
health and prosperity”. The Encyclopedia of Social Science defines it
as “the voluntary efforts of the employers to establish, within the existing
industrial system, working and sometimes living and cultural conditions
of employees beyond what is required by law, the customs of the
industry and the condition of market.
In the Report II of the ILO Asian Regional Conference, it has
been stated that worker’s welfare may be understood that it is essential
to establish services, facilities and amenities outside or inside the
5
workplace. Thereby enable the workers employed to work in healthy
and congenial surroundings with high morale.
The Labour Investigation Committee (1944-46) includes under
labour welfare activities “anything done for the intellectual, physical,
moral and economic betterment of the workers, whether by employers,
by government or by other agencies, over and above what is laid down
by law or what is normally expected as per of the contractual benefits
for which the workers may have bargained”.
The significance of welfare measures was accepted as early as
1931. The Royal Commission on labour stated that the benefits are of
great importance to the worker which he is unable to secure by himself.
The schemes of labour welfare may be regarded as a wise investment
because it would bring a profitable return in the form of greater
efficiency. The definitions and reports given by different authors and
committees reveal the importance of labour welfare measures and its
impact on labour belongs to the various sectors.
The philosophy of labour welfare measures is based on the
theory that the success of industrial development depends on the
harmonious relations and co-operation between labour and
management. The labour has a sound knowledge and experience at his
jobs. If rightly directed and fully utilized, it would make a good
contribution to the prosperity of the organization. The prosperity can be
6
achieved only through the satisfaction of the labour. Efficiency is the
matter of running an organization and maintenance of productivity at a
rising rate and higher level, and call for good labour relations throughout
the process of production. It enables all those engaged in the
organization to provide their maximum personal contribution to its
effective working.
Pyle and George (2009), have pointed out that “Even one
discontented employee or an employee nursing a grievance can
eventually infect an entire organization with the germ of discontent
which in turn, will result in lower efficiency, poor morale and reduction in
overall production”.
The Report of the Committee on Labour Welfare (1969)
includes “such services, facilities and amenities as adequate canteens,
rest and recreation facilities, sanitary and medical facilities, transport
facilities, accommodation of workers employed far away from their
homes and social security measures which contribute to improve the
conditions under which worker or employer.”
Mishra and Bhagat (2010), in their study “Principle for
Successful Implementation of Labour Welfare Activities”, stated that
labour absenteeism in Indian industries can be reduced to a great
extent by providing good housing, health and family care, canteen,
educational and training facilities and provision of welfare activities. The
7
principle for successful implementation of labour welfare activities is
nothing but an extension of democratic values in an industrialized
society.
The labour welfare activities in the form of health service centers
are provided with the philosophy that a good medical service center will
help in ensuring sturdy improvement of job satisfaction and productivity.
A healthy worker is a basic requirement of an organization.
Therefore, it is incumbent on the part of the employer to look after
the health of the workers and to provide such facilities, which would
ensure minimum health hazards. The law concerning prescribes the
minimum standard but progressive employer must extend his activities
to protect the health of the labourers and their dependents. In return,
their co-operation will be wholehearted, more efficient and attitude will
be proper and congenial.
Thus, the whole field of welfare is said to be the one “in which
much can be done to combat the sense of frustration of the industrial
workers, to relieve their personal and family worries, to improve their
health, to afford self expression, to offer them some sphere in which
they can excel others and to help them to a wider conception of life”.
8
1.3 INDUSTRIAL RELATIONS
Prof. Yoder (1972), defines industrial relations as the whole field
of relationship that exists because of the necessary collaboration of
men and women in the employment process of industry. Industrial
relations are associated in productive work including industry,
agriculture, mining, commerce finance, transport and other activities.
Dunlop (2006), defines industrial relations as ‘the complex inter-
relations among workers, managers and government. According to
Lester, opinion, industrial relation aims at arriving on solutions between
the conflicting objectives and values, profit motive and social gain,
discipline and freedom, authority and general well being of the society.
Industrial democracy, between bargaining and cooperation and
between the conflicting interests of the individual, the group and the
community.
Katz (1985), “Assessing the effects of industrial relations systems
and efforts to improve the quality of working life on organizational
effectiveness”. The study assesses the relationship among
characteristics of industrial relations systems, efforts to improve the
quality of working life, and selected measures of organizational
effectiveness in 25 manufacturing plants belonging to one company on
the basis of both research from organizational behavior and industrial
9
relations, they study offers the proposition that industrial relations
systems affect organizational effectiveness through two channels.
The empirical results show (1) strong evidence of an association
between measures of the performance of industrial relations systems
and economic performance, and (2) evidence that efforts to improve
quality of working life, have little impact on economic performance.
Labour-management relationship plays an important role in
enriching quality of work life (Bernadin, 2007). A positive feeling about
the company is considered to be an ethos that binds people together
and discourages the constituent members of the company from leaving
(Sayeed, 2001, p.254). The management should develop and
implement adequate HR strategies such as empowerment, joint
decision making, multi skilling, etc, for optimum utilization of existing
human resources in the competitive environment (Saini, 2000).
The word of Kularajah (1971) in his article stated that it is vital
that in the running of an organization, a correct and proper relationship
should exist between employer and employee. On the other hand the
employees not only understand the objectives of the organization but
also have positive attitude towards the organizations”.
Raj (1969), attempted to study personnel management practices
in a cross section of public, private and co-operative enterprises. The
study covers 32 organizations and throws light on various aspects of
10
personnel management such as recruitment, selection, training,
promotion and transfer, performance appraisal and career development,
employee morale, wage and salary administration, welfare services,
union-management relations and personnel organizations.
Veeraraghavan, (1960) conducted study in three industries about
the employees’ attitudes, satisfaction and discontentment of employees
with regard to wages, supervision, management, job, co-workers,
working conditions, communication, welfare facilities and labour union.
The study has revealed that the workers in private enterprises were
more satisfied than those working in public enterprise. Evidences
indicate that a deliberate effort to create favourable working conditions
was allowed by an improvement in morale.
The objectives of industrial relations, are to facilitate production,
to safeguard the interests of both labour and management by enlisting
cooperation of both, to achieve a sound harmonious and mutually
beneficial relationship between employees and employers and thus to
promote the general well being of society.
Industrial relations involve, besides the maintenance of employer-
employee relationship, maintenance of relations between labour unions
and management, various groups of employees and also between the
industry and society (government, local bodies, other institutions and
the public). Successful industrial relations may mean promotion and
11
development of (i) healthy labour-management relations, (ii) industrial
peace (by avoiding conflicts) and (iii) industrial democracy.
Industrial relations system comprise of workers (employees) and
their organizations (trade unions), management (employers) and their
organizations (employers’ associations, federations and chambers) and
the government (central, state and local bodies). Sincere and effective
functioning of these components can ensure proper industrial relations.
1.4 INDUSTRIAL RELATIONS IN DEVELOPED COUNTRIES
Some developed countries studies related to impact of labour
welfare measures and industrial relations are taken for the clear
understanding of the concept.
The principle of any national systems of industrial relations largely
depends on the importance given to the labour welfare measures by
which the nations judge and legitimatize. The values determined in the
U.K. system, are believed in economic freedom and desire for
industrial peace. The three essential principles of the British system are:
a) Preference for collective bargaining which is developed to suit
historical circumstances.
b) Preference for voluntary procedural rules for collective bargaining
which lead to agreements by parties, and is based on continuous
12
recognition of mutual interests in settling disputes without state
intervention and
c) Emphasis on procedure as opposed to substance, which means
that parties are more concerned with reaching a workable compromise
through the accepted machinery.
In U.S.A., emphasis is more on the substance of agreement
pertaining to wages, hours of work, safety etc. But the U.K. government
emphasis on mediation services, against forced political contributions,
against political strikes and against the use of violence in labour
disputes.
Unions refuse to allow collective bargaining to take place except
through them. An assumption is that good relation created by voluntary
actions and collective bargaining has strong support in the society. With
the non-intervention of government, British collective bargaining
represents a pure form of voluntarism and free contract (Chand, 1989).
Each year, corporate America provides nearly 2 billion hours of
training to approximately 60 million employees at a cost of $55 to $60
billion (Industry Report, 1997). Effectiveness research can maximize the
impact of this investment on worker safety, productivity, and profits. To
equip America’s workforce with the skills necessary in today’s economy,
the U.S. Departments of Education and Labour have recently co-
13
sponsored several initiatives that reflect the national importance of
worker training.
The Training Effectiveness (1999), said by the Occupational
Safety and Health Act of 1970 (Public Law 91-596) was enacted to
assure, safety and healthy working conditions for every working man
and woman in the nation. The Act mandated improved research,
regulations, and training aimed at reducing the incidence of
occupational injury and illness.
In addition to this, the unions in United States, concentrate on
matters which directly affect the lives of the workers. In non-union
settings, employees have been able to determine all matters unilaterally
by the bargaining power of individual workers. The United States
government has limited itself to setting the ground rules rather than its
terms in the relationship between labourer and management. There is
no central mechanism for dealing with the social problems of workers.
While unions have become strong, U.S. business has more than
matched that strength. The difficulties confronting U.S. unionism derived
from the weakening of collective bargaining performance at the job,
plant and company levels.
The notable characteristics of the legal system concerning
Japanese labour management relations, is the constitutional guarantee,
which stipulates the rights of the workers to organize, bargain and act
14
collectively. Trade unions in Japan are set up as company-by-company
units. Collective bargaining is between the management and the union
of each enterprise. The Japanese industrial relations are based on four
pillars such as:
a. Life time employment
b. Subsistence wages
c. Enterprise unionism and
d. Social nature
The above characteristics are fortified by the unique Japanese
method of management, whereby, decisions are thrashed out by
managers endorsed at the lower levels and endorsed at the higher level
as opposed to the downward flow of decisions which are more common
in the west. Small group activity, where workers form themselves into
voluntary groups to discuss company problems and suggest methods is
unique; to the system of IR in Japan. (Ibid., p.22).
The Japanese government provides facilities for dealing with
disputes but never gets involved. The Japanese believe that the art of
management is the art of creating circumstances in which conflict does
not arise, and that is the essence of peaceful industrial relations in
Japan.
15
1.5. INDUSTRIAL RELATION IN INDIA
In the year 1950s, there was a strong belief that employees were
not expected to question ‘why’ but only ‘to do-and-die’. In the year
1960s, terms like “manpower”, “personnel” came to be used and instead
of controlling the employees, it became more and more acceptable to
manage personnel. As studies reveal that productivity of the workers
could be improved if they are organized for the work. Moreover, after
1970s, employers realized that beyond a point, productivity depended
on workers (Monappa, 1989). In addition, workers started demanding
whatever they expected from the employers more than their salaries. In
the present context of sharing the global thinking, Indian industries
started to introducing motivation theory, social-comparison process, job
enrichment, participative management, empowerment, quality of work
life, total quality management and Kaizen.
At the same time, experts observed that there are some strategic
challenges faced by the industry such as increasing competition,
globalization of business, technological change, changing work culture,
resource constraints and transition from industrial to information society,
unstable market owing to economic conditions, increasing demands by
corporate stake-holders, and a complex psychological environment.
However, in the Indian context, emotions, feelings, empathetic
perceptions and impressions have influenced the workers more than
16
monitory benefits. In a work environment, workers do not like being
treated as puppets, blamed, belittled or bossed over. On the other hand,
managers or supervisors feel that they should ‘think’ and workers must
‘do’. The idea that the boss is always right still persists. The boss-
subordinate relationship creates stressful situations, hampering the
environment which is conducive to industrial relations. Human resource
management basically refers to a balanced interaction between these
two sets of expectation. The subordinates expect that the boss should
have integrity, higher performance skill, commitment, guidance and
accessibility, etc. On the other hand, the boss expects that his
subordinates should have a commitment for job, integrity, competency,
reliability, initiative, loyalty to the organization, self-discipline and a good
sense of accountability and involvement. Only an efficient personnel
manager can ensure industrial harmony between the management and
the employees. However, a healthy corporate philosophy ensuring
uniform policies at all levels of an organization is necessary for good
industrial relations.
In the present scenario, Indian organizations are experiencing a
transition. The new generations of MBAs are pouring into industrial
organizations. Young executives in their mid age of 30s are heading
human resource division in big companies. Moreover, due to the
unprecedented advancement in information technology, there is a
growing need to understand and manage the transition, and give a
17
direction to the change process. In order to achieve an effective
industrial peace, the Human Resource Management with Human
Resource Development, Industrial Relations and Organization
Development should be integrated. The Human Resource Management
strategies in India in the 21st century have to focus on better individual-
organization interface and greater emphasis on organizational
effectiveness than on personal success.
1.6 OBJECTIVES OF INDUSTRIAL RELATIONS
In industrial relations, the human values receive greater
recognition and it is felt that the economic progress should not be
measured only in terms of economic effects produced but also in terms
of social values created in society. It is only when workers form co-
partners in industry and both toil in the service of the society, that there
can be improvement in the total welfare of the society. As the Director
General of the International Labour Organization states, “In our
approach to industrial relations, the main emphasis should be on human
factor. The essential thing is to give men a sense of purpose in their
work. Only when men have this sense of purpose, only when they
understand how by their work they contribute to the well-being of the
society, can they have that confidence in their own true worth which is a
mark of freedom.” Thus the labour problem is approached on
humanitarian grounds in the modern industrial society.
18
Maintenance of satisfactory industrial relations in sugar industry is
of paramount importance to a developing economy. In order to ensure
smooth and uninterrupted flow of production, harmonious, cordial and
peaceful industrial relations are essential. Mutual respect, confidence,
understanding and acceptance of responsibilities by both workers and
employers in the exercise of their rights and duties in the operations of
the plants ensures in return, security of employment, a high standard of
living and they leads to social progress.
Therefore, the objectives of the healthy industrial relations,
besides safeguarding the interest of the labour and management, are
the increase of production and efficiency of workers and promotion of
industrial growth in a country.
One of the objectives of healthy industrial relations in sugar mills
is to raise productivity to a higher level. This is possible only when all
other conditions also remain favourable e.g., Availability of materials,
power etc., Levels of productivity can be raised only. When there is a
sound infrastructure and also labour turnover and absenteeism are
controlled effectively. This condition is one of the important indicators of
good industrial relations. Besides this, encouraging labour participation
in managerial decisions through sound system of communication, and
recognizing the individuality of each laborer go a long way in
establishing healthy industrial relations.
19
To sum up, maintenance of good human relationship is a sin-qua-
non for an organisation. In its absence the whole edifice of
organisational structure crumbles down. As the contented labour force
brings about outstanding results the management must ensure that the
employees attain their objectives. This is essential for running the
enterprise at its optimum level, through group satisfaction.
1.7 INDICATORS OF INDUSTRIAL RELATIONS
Industrial unrest is generally the result of the workers
discontentment in some form or other. Discontented workers represent
their grievances to their employers and when the employers are
reluctant to redress the grievances, the discontentment of the workers is
manifested through strikes or organised demonstrations. When the
grievances of the workers are not redressed for a longer period it
creates a situation of conflict. This hardening of the attitudes becomes
a prestige issue for both the parties and the situation eludes solution.
1.7.1 Indicators of poor industrial relations
• Where the unions believe that only strikes pay rewards;
• Where intra-union rivalries exist;
• Where the trend is for politicization of unions;
• Where the attitude of management is non-responsive and
indifferent to workers grievances;
20
• Where the existing legal framework to solve the workers
problems is ineffective;
• Where there is no interaction between the management and
the union;
• Where wages do not keep pace with price increases; and
• Where there is communication gap between two conflicting
groups.
1.7.2 Indicators of healthy industrial relations
• Existence of one strong and responsible trade union without any
political ends;
• Existence of effective collective bargaining machinery. The two
conflicting groups acknowledge the equality of the status and desire for
quick settlement.
• Existence of job security accompanied by job satisfaction and
fulfillment of economic needs of the workers.
• Existence of uninterrupted production conditions in the units,
without strikes, lockouts or go-slow tactics which cause loss of man-
days.
• Existence of very low or negligible rate of labour absenteeism.
• Existence of high level of productivity.
21
1.8 MEANING OF THE KEY TERMS
Labour Welfare
Labour welfare is a comprehensive term including various
services benefits and facilities offered to employees by employer. The
labour welfare amenities are extended in addition to normal rewards
available to employees as per the legal provisions. Labour welfare
measures works for improving the health, safety, general well-being and
the efficiency of the workers beyond the minimum standards laid down
by labour legislation. Welfare measures may also be provided by the
government, trade unions and non-government agencies in addition to
the employer.
Industrial Relation
The term Industrial Relation means relationship between
management, supervisors, trade union and workmen in the private
sector sugar mills in Tamilnadu.
Employees
Employees refer to people working in the private sector sugar
mills in Tamilnadu either on permanent or on seasonal basis. It includes
officers, supervisors and workmen.
Monetary Benefits
22
Monetary Benefits refers to wages, incentive, allowances,
compensation, insurance, bonus, etc given to the employees working in
the private sector sugar mills in Tamilnadu.
General Working Conditions
Working Conditions includes cleanliness, lighting and ventilation,
working hours, training to handle emergency situation, safety
equipments, etc provided to the employees working in the private sector
sugar mills in Tamilnadu.
Workers Participation in Management
Workers Participation in Management is one of the most
significant modes of resolving industrial conflict and encouraging
workers, a sense of belongingness to their establishments. The main
idea of workers participation is to increase employees’ influence in the
management by giving due recognition to human element in the private
sector sugar mills in Tamilnadu.
Employees Grievance Handling
The complaints affecting one or more individual workers working
in the private sector sugar mills in Tamilnadu with respect to their
payment of wages, overtime, leave, transfer, promotion, work
assignment and work environment would constitute “grievances”.
23
Grievance Handling is a formal procedure, which enables the
parties involved and it is an attempt to investigate, discuss the problem
and resolve their differences in a peaceful, orderly and expeditious
manner, without interrupting the smooth conduct of business of the
private sector sugar mills in Tamilnadu.
Trade Union
Trade union refers to any association between employer and
employer, employee and employee and employer and employee formed
for the purpose of safeguarding their interest in the private sector sugar
mills in Tamilnadu.
Statutory Welfare Measures
Welfare Measures denote services, facilities and amenities which
may be provided outside or inside of the private sector sugar mills to
enable the employees working therein to perform their work in a healthy
and congenial surrounding.
1.9 PROGRESS OF SUGAR INDUSTRY IN INDIA
Introduction
Indian economy is an agrarian economy. 70 percent of the
descendants of this country rely on agriculture. Geographically the
Indian subcontinent desperate to the north of the equator and hence the
climatic conditions are conducive to sugarcane cultivation. The states
24
lying south of the Narmada River i.e., Maharashtra, Andhra Pradesh,
Karnataka and Tamilnadu are the best-suited area for sugarcane
growing. The number of growers of this crop is about 4 million. In the
cropping pattern of the country, sugarcane occupies 1.5 percent to 2
percent of the total cultivable area (Satheeskumar, 2009).
The History
The historical and mythological evidences clearly show that the
original home of sugarcane and sugar manufacturing is India. “The
soldiers of Alexander the Great who invaded India around 327 B.C.
were the first Europeans to see sugarcane in India. Though they took
sugarcane to Europe it was not actually cultivated there until 700 A.D.”
(Indian Sugar Year Book 1977-78). Evidently, sugarcane was prevalent
in India long before it was cultivated in Europe, and it was from India
that Europe came to know about sugarcane. However, the process of
making sugar was invented between the 4th and 6th centuries. About
600 A.D. Tsai-Hang, the Chinese Emperor sent a mission to Bihar to
understand the art of sugar manufacturing (Ibid p.1). It is evident from
these facts that the original home of sugarcane and sugar
manufacturing is India.
In the early days, the process of sugar manufacture was simple
and native in nature. Until 1932, the Indian sugar market was dominated
by Jawanesh sugar market and in the absence of home protective
25
measure, the Indian sugar-manufacturing scene did not show any
significant progress. The policy makers of the Government thought of
giving protection to the home industry and matter was referred to the
Tariff Board by rightly recognizing the growth potential of the sugar
manufacture in India. In 1934, the sugar industry protection act was
passed, whereby the indigenous sugar industry in India was granted
protection for an initial period of 14 years.
As expected, the effect of the discriminating protection policy on
the growth of sugar industry was tremendous. In fact, the adoption of
the discriminative protection policy marked the beginning of modern
sugar processing industry by direct vacuum pan method in India. Even
within three years after the adoption of discriminating protection policy,
the industry registered a phenomenal growth of the sugar factories to
the extent that the number of sugar factories increased from 32 units in
1931-32 to 454 units in 2006-07. During this period, the volume of
production also registered a substantial increase.
The rate of expansion constitutes almost a world record. At any
rate, if judged by the number of the productive units. The sugar industry
marks a tremendous growth in the history of Indian Industries (Indian
sugar year book et al 1977-78). However, the advent of modern sugar
producing industry by vacuum pan process in India started only with the
adoption of a policy of discriminative protection to the industry by the
Government of India in 1932 (Handbook of Sugar Information, 1981).
26
The industry was then started in regions like Uttar Pradesh and Bihar
where the sugarcane growing was organized. It was felt, as early as in
1934 that a minimum price should be assured to the cane growers who
supply the raw material, which constitutes nearly 70 percent of the cost
of production of sugar. A minimum cane price came to be fixed by the
Government under statutory norms.
In 1934, Union Government of India passed the sugarcane Act,
Section 3 of the act empowered the State Government to fix the
minimum price for the purchase of sugarcane intended for use in any
factory and also to regulate its purchase. Uttar Pradesh and Bihar were
the two State Governments fixing the minimum cane price every year till
the Central Government took over the control of sugar industry
(Development and Regulations) Act, 1951.
Indian Sugar Industry Scenario
India is the largest consumer of sugar in the world. Indian sugar
industry is the second largest agro-based processing industry after the
cotton textiles industry and has a lion’s share in accelerating
industrialization process and brings socio-economic changes in the rural
India. (Pandey, 2007). Currently there are 671 sugar mills operating in
different parts of the country (Indian Sugar Mills Association, 2012).
About 50 million sugarcane farmers are there and around 2 million
skilled and semi skilled workers are involved in ancillary activities such
27
as relating to transport, trade, servicing of machinery and supply of
agricultural inputs, mostly from the rural areas (Regulation of Sugar
Sector in India: The way forward, Oct, 2012). The industry not only
generates power for its own requirement but also surplus power for
export to the grid based on byproduct bagasse. It also produces
ethanol, an eco-friendly and renewable energy for blending with petrol.
(Satheeskumar and Selvaraj, 2007).
Today, Indian sugar industry’s annual output is worth
approximately Rs.80, 000 crores although it has the potential to grow at
double digits and double its worth to Rs.1, 60,000 crores over the next
five to ten years. The key to unlock this untapped potential lies in taking
the sugar sector from de-licensing to its logical conclusion of total
decontrol so that it can influence the expanding opportunities created by
the consistently rising demand for sugar and the emergence of
sugarcane as a source of renewable energy through ethanol and
cogeneration. Sugar industry needs to be freed from myriad restrictions
ranging from levy obligations, a regulated release system from non-levy
sugar, SAP, etc. The pricing of sugarcane, being critical has to be
based on a scientifically sound and transparent principle. A vibrant and
thriving sugar industry will be a catalyst for change in rural India
bringing in prosperity and contributing to energy security a ‘win-win’
situation for all stakeholders. (Report of the committee on Regulation of
Sugar Sector in India: The way forward, Oct, 2012).
28
A major step to liberate the sugar sector from control was taken in
1998 when licensing requirements for new sugar mills was abolished.
Till 1997-1998, growth in sugar industry was at a much lower level and
took-off on a high growth trajectory in the post de-licensing period. From
1990-1991to 1997-1998 (pre de-licensing period) the sugar industry in
terms of installed capacity, grew at an annual average growth 3.3
percent, which more than doubled to 6.9 percent thereafter (1998-1999
to 2011-2012). And this high growth of sugar industry resulted from the
private sectors. The installed capacity in the private sectors grew at an
annual average rate of 11.2 percent in the post-delicensing period as
compared to only 4.8 percent earlier. In comparison, co-operative
sector’s capacity grew by only 2.7 percent in the pre-delicensing period
and 3.7 percent in the post-delicensing period. Public sectors’ capacity
growth has been negative at (-) 1.7 percent, even in the post-
delicensing period. (Directorate of sugar, Department of Food and
Public Distribution, 2011-2012).
Till 1997-1998, co-operative sugars dominated the sugar industry
with an installed capacity of 51.5 percent of total installed capacity in the
country, followed by the private sector (38.2 per cent) and public sector
(10.3 percent). In the year 2011-2012, the domination of co-operative
sector has changed significantly with the private sector contributing the
largest share of 63.3 percent of total installed capacity, followed by co-
operative (33.6 percent), with the public sector (3.2 percent) trailing well
29
behind. Normally, larger mills enjoy scale economies and greater
efficiency in sugar production. Based on an analysis of 84 sugar mills in
Maharashtra, it is found that there exist strong economies of scale in the
sugar industry, i.e., with increasing scale of operations, the cost of
conversion of sugarcane into sugar decreases substantially.
(Commission on Agricultural Cost and Price, 2011-2012).
Global sugar production for marketing season 2012/13 is forecast
at 174 metric tonnes (MMT) raw value, up by 2 percent from last year.
(United States - Department of Agriculture). Area under sugarcane has
risen from 39.29 lakh hectares in 1997-98 to 49.44 lakh hectares in
2010-2011. Over the same period, sugar production has increased from
279.59 million tonnes to 339.17 million tones. (Directorate of Economics
and Statistics, 2011-2012). In spite of the improvement in the production
of sugar over the years, this sector has not been nourished on sound
lines. The sugar sector consisting of sugarcane farmers, sugar industry
and the consumers continues to remain disillusioned with the vicious
circle of high production with low prices followed by low production with
improved prices. Policy initiatives of the government to insulate this
sector from fluctuations for stable growth is the crying need of the hour.
Production: Fortunately, for the first time-in recent history, when
the Indian sugar production is surplus over the domestic consumption
even for the second consecutive year after 2011, the international sugar
prices were still significantly higher to the Indian domestic ex-mill prices.
30
Therefore, there was a huge opportunity for the sugar industry and the
country as well, to be taped from a viable international sugar market.
There is clearly a market abroad for the surplus of over 40 lakhs tons of
Indian sugar (Sugar Exports in 2011-2012 sugar season). The
production of sugar obviously increases the global competitiveness of
the Indian sugar industry and as a result, India has emerged as a net
exporter of sugar over the last decade (Directorate General of
Commercial Intelligent and Statistics, Kolkata, Exports and Imports refer
to financial year, 2011-2012).
Consumption Trends: The sugar consumption has increased at
a rate of 4.14 percent over the last decade. The expected growth rate
for the next 3-4 years is 3 percent at a conservative estimate.
Demand-Supply Situation: India has gradually increased
production in line with demand. The consumption is increasing due to a
variety of reasons primary among them being explosion of population
and rising income levels.
Export and Import of Sugar: The production of sugar in India
has been volatile. For example, the production reached a peak of 28
million tonnes in 2006-07, falling to 15 million tonnes in 2008-09, and
estimated to have increased again to 25 million tonnes in 2011-12. It
tracks closely the production of sugarcane. The volume of imports and
exports remain small in relation to the overall production of sugar. The
31
import was 5 percent and export was 13 percent of total production in
2010-11. India is a net importer or exporter (measured by the difference
between the value of imports and exports) of sugar varies over time. For
example, it was a net importer in 2009-10, but a net exporter in 2010-
11.
Ethanol Production and Indian Scenario: The Government
approved mandatory 5 percent ethanol blending with petrol as a
National Program way back in October, 2007 and has suggested that
the ratio be further increased to 10 percent by October, 2008. If the
proposal is accepted, India would join a selected group of countries like
United States, Brazil and Japan, which are increasingly using
alternative non-fossil fuels in the transportation sector. For instance, in
Brazil, the mandatory ratio of ethanol with petrol is 24 percent while in
the US it is 10 percent. With 5 percent blending, 7-10 percent of oil bill
can be roughly saved and with 10 percent blending; about 15-20
percent can be saved. India imports nearly 70 percent of its annual
crude petroleum requirement, which is approximately 110 million
tonnes. The prices are in the range of US $ 50-70 per barrel, and the
expenditure on crude purchase is in the range of Rs.1600 billion per
year, affecting the country’s foreign exchange reserves in a big way
(Satheeskumar and Selvaraj, 2008).
In other words, at 5 percent ethanol blend level, the oil companies
are actually saving about one rupee on every litre of ethanol-blended
32
petrol in comparison to pure petrol. The saving of one rupee saving
could either be retained by Oil Manufacturing Companies (OMCs),
which will reduce Government subsidies to that extent or passed on to
the consumers by way of reduction in price of petrol. At 60 crore litres
and a saving of Rs. 20 per litre, the oil companies are clearly saving
Rs.1200 crore in one year. With the approval of final pricing of ethanol,
it is definite that more and more sugar factories and ethanol
manufacturers would be willing to supply additional ethanol to the
OMCs, which can go up to 100 crore litres for the 5 percent blending
program, from the present 60 crore litres per year. The supply of
additional ethanol will give them further savings of Rs.800 crore per
year and total savings of OMCs due to the 5 percent ethanol blending
program will go up to Rs.2000 crore.
Ethanol is a by-product from sugarcane, and hence renewable. It
is an environment-friendly fuel used now almost all over the world by all
the developed and developing countries in some proportion. Further,
ethanol is a very good oxygenate and because of its extra oxygen
molecules it helps the petrol portion of the blend to burn much cleaner,
reducing carbon monoxide in the exhaust and hence the overall
environmental pollution is caused from fossil fuel (Sugar India, Pulse of
Indian Sugar Industry, 2012).
The ethanol program is being implemented in a phased manner
in consultation and coordination with the State / Union territories
33
governments, Indian Sugar Mills Association (ISMA), the Ethanol
Manufacturers Association (EMA), All India Distilleries Association
(AIDA) and the Society for Indian Automobiles Manufacturers
Association (SIAM).
By Products
The Indian sugar industry crushes about 70-80 per cent of the
sugarcane for sugar production, with the remaining cane accounted for
by the production of local sweeteners (Khandsari and gur), seed, feed,
cane juice, chewing and waste. The by-products, such as molasses,
bagasse and press mud, are produced in the first stage of processing of
sugarcane. The markets for these by-products are tightly regulated so
that their true market value is not realized by the mills, leading to loss of
potential revenue.
I Molasses
Molasses are produced in the final stage of manufacture of sugar
by the vacuum pan process from sugarcane or gur. The production of
sugar and molasses is indicated in the Table 1.1 below. It has some
unrecoverable sugar, which is utilized to produce rectified spirit or
alcohol of 94.5 percent purity. Almost the entire quantity of alcohol in
the country is produced from sugarcane molasses.
34
Table 1.1 Production of Sugar and Molasses
Year Sugar Production
(in lakh MT)
Molasses Production
(in lakh MT)
2006-07 283 131
2008-09 145 65
2009-10 189 84
2010-11 244 107
2011-12
(Estimated) 260 115
Source: ISMA Handbook of Sugar Statistics, and the Chemicals
and Alcohol Industries.
There is no control by the union government on production,
pricing and distribution of molasses. There is no price control on the
molasses in any state. However, the allocation and movement of
molasses is controlled by the State Excise authorities. Any quantity
exported or sold from sugar factory is recorded on a daily basis. Selling
of any molasses requires a permit, NOC from the State Excise
Department, against which any quantity can be sold or purchased. It is
obtained by the purchaser from the excise authority of the exporting
State. Export of molasses to other states is generally not allowed.
Tamilnadu has been banned in export of molasses.
35
Sale of molasses is an important revenue stream for sugar mills.
Most state governments exercise control on its allocation and/or
movement. The sale of molasses places mills in a disadvantageous
position and distorts a market which has the potential to be truly
competitive and efficient. The committee is of the view that there should
be no quota imposed (quantitative restrictions) on the mills for sale of
molasses. All user industries, viz., potable alcohol, chemicals and
petroleum product industries should compete for molasses, and the
market should determine its price.
II Bagasses
Bagasse (Surpluses of requirement for boilers in the mill itself)
was traditionally, used in the paper industry, but is now largely being
used as fuel feedstock for cogeneration of electricity. As against a total
country-wide estimated potential of 5, 000 MW based on this feed stock,
about 2, 000 MW of capacity has already been created. Given the
capital costs involved, private sugar mills have accounted for the major
proportion, as many cooperative and public sector mills are in the red.
However, even the latter have begun developing their cogeneration
capacities through competitive bidding. At present, cost of generation is
about Rs.3 to Rs.3.50 per unit, where as preferential power tariffs set by
State Electricity Regulatory Commissions (SERCs) are in excess of
Rs.4.25 per unit. Thus, cogeneration is ecologically and financially a
viable proposition and is growing rapidly.
36
Industry representatives have apprised that certain states, like
Tamilnadu and Karnataka, have invoked Electricity Act provisions that
empower state government to impose restrictions on sale of power, are
not allowing open access sale during the months of greater power
shortfall. The sale of power has been challenged in court.
III Press Mud
Press mud, is a solid waste by-product of the sugar industry. The
press mud is rich in organic compounds like nitrogen, phosphorus,
magnesium and potassium. The press mud is being utilized to produce
bio-compost by treating it with spent wash, a liquid waste from the
distillery, which is rich in potash, on a stack of press mud called
windrows. Over a cycle time of 40-50 days, spent wash mixed with
press mud gets compost and forms organic manure.
Cane Acreage in India
The Cane Acreage in India is given in the Table 1.2. The total
area under sugarcane in India has shown a progressive increase from
4411 thousand hectares in 2001 – 2002 to 4944 thousand hectares in
2010 – 2011.
37
Table 1.2 Cane Acreage in India
Sl. No. Year Cane Acreage (1000 Hectares.)
1. 2001 – 2002 4411
2. 2002 – 2003 4520
3. 2003 – 2004 3938
4. 2004 – 2005 3662
5. 2005 – 2006 4201
6. 2006 – 2007 5151
7. 2007 – 2008 5055
8. 2008 – 2009 4415
9. 2009 – 2010 4175
10. 2010 – 2011 4944
Source: Sugar India Year Book, 2012 p.83
Yield of Cane in India
The yield depends on type of seed, extent of ratoon crop, weather
conditions, soil conditions, availability of water, pest and disease
control.
38
Table 1.3 Yield of Cane in India
Sl. No. Year Yield of Cane (Per Hect./M.T.)
1. 2001 – 2002 67.4
2. 2002 – 2003 63.6
3. 2003 – 2004 59.4
4. 2004 – 2005 64.8
5. 2005 – 2006 66.9
6. 2006 – 2007 69.0
7. 2007 – 2008 68.9
8. 2008 – 2009 64.6
9. 2009 – 2010 70.0
10. 2010 – 2011 68.6
Source: Sugar India Year Book, 2012 p.83
The Table 1.3 shows the yield of cane in India. In 2001 – 2002
the yield of sugarcane is 67.4 per hect./M.T. It has decreased in the
following years still 2008 – 2009 and in 2010 – 2011 because of the
variety of seeds, lack of rainfall, less number of skilled labourers etc.
The sugarcane production has increased by 2.6 percent in the year
2009 – 2010.
39
Sugar Production from sugarcane in India
The sugar production from sugarcane in India is given in the
Table 1.7. The sugar production has been improving due to
modernization of facilities and better seeds and fertilizers. The mills,
which focus on the future, enable the farmers to obtain suitable aids to
agriculture which results in increase from 18528 thousand M.T. in 2001
– 2002 to 24394 thousand M.T. in 2010 – 2011.
Table 1.4 Sugar Production from sugarcane in India
Sl. No. Year Sugar Production (1000 M.T.)
1. 2001 – 2002 18528
2. 2002 – 2003 20145
3. 2003 – 2004 13546
4. 2004 – 2005 12690
5. 2005 – 2006 19267
6. 2006 – 2007 28367
7. 2007 – 2008 26357
8. 2008 – 2009 14539
9. 2009 – 2010 18912
10. 2010 – 2011 24394
Source: Sugar India Year Book, 2012 p.83
40
1.10 PROGRESS OF SUGAR INDUSTRY IN TAMILNADU
Cane Acreage in Tamilnadu
Tamilnadu is one of the leading states of the Indian country in
sugar production. The major determinant of its development is the
phenomenal growth of the agricultural sector which is confined only to
three commercial crops viz., paddy, sugarcane and cotton. The
cultivation of sugarcane has made enormous progress in Tamilnadu in
the recent years because of the growth of sugarcane industry under
state protection; sugarcane is cultivated in about 10 percent of the gross
cultivated area. The soil in Tamilnadu is conducive to the growth of
sugarcane and it has a unique feature of sub-soil drainage, which is
helpful to sugarcane cultivation. The favourable climatic conditions
coupled with adoption of modern methods of cultivation, hard work by
farmers and development efforts by the sugar factories – all these have
resulted in a faster growth of sugar industry in Tamilnadu. The sugar
factories have taken up soil surveys, irrigation schemes, and road
construction within their area of operation for the benefits of members.
Sugar industry is the foremost agro-based rural industry providing direct
employment to 0.50 lakh people. Besides about 25 lakh people are
indirectly connected with this industry in the state.
The total area under sugarcane cultivation depends on rationing:
The extent of ratoon crop is one of the determinants of the overall area
41
under sugarcane cultivation. Although farmers realize a lower yield in
ratoon crop as compared with a plant crop, they prefer to grow another
sugarcane crop rather than switch to alternative crops due to lower
costs of a ratoon crop. The cultivation has been influenced by many
factors like climatic condition, payment of remunerative prices,
subsidies provided, fertilizers and pesticide and for harvesting and
transportation of sugarcane favourably.
Table 1.5 Cane Acreage in Tamilnadu
Sl. No. Year Cane Acreage (1000 Hectares)
1. 2001 – 2002 326
2. 2002 – 2003 284
3. 2003 – 2004 192
4. 2004 – 2005 232
5. 2005 – 2006 336
6. 2006 – 2007 391
7. 2007 – 2008 352
8. 2008 – 2009 309
9. 2009 – 2010 293
10. 2010 – 2011 336
Source: Sugar India Year Book, 2012, p.83
42
Therefore, it is understood from the Table 1.5 that the total area under
sugarcane cultivation has, shown a progressive increase from 326
thousand hectares in 2001 – 2002 to 336 thousand hectares in 2010 –
2011.
Yield of Cane in Tamilnadu
The overall sugarcane yield depends on the quality and treatment
of seeds. Different varieties of seeds have different yielding potential. A
lot of research is going on in India in search of new varieties of cane to
maximize the yield per hectare. The growth period for sugarcane, from
planting to maturity, ranges from 1 to 2 years based on the variety. The
growth period of sugarcane is important as harvesting has to be
synchronized with the ripening of the sugarcane crop, when the sucrose
content is the maximum. One of the most critical factors in the
production of sugarcane is temperature. The minimum mean air
temperature for active growth is 200 C, depending on the seed variety
used; the average temperature may vary between 20o C and 400 C.
The length of the period when the temperatures are significantly below
200 C influences both the growing season and ripening period.
Sunshine is another factor in growing sugarcane as the photosynthesis
rate of the sugarcane plant is affected by the natural light intensity.
Sugarcane is a highly versatile crop that can be grown under a wide
range of soil conditions. However, sandy, loamy soil is ideal for the
crop. Physical factors such as porosity, depth, bulk density, permeability
43
and moisture retention are more important than the chemical properties
for successful production; but the physical properties cannot be easily
modified.
Table 1.6 Yield of Cane in Tamilnadu
Sl. No. Year Yield of Cane (tones per Hectares)
1. 2001 – 2002 101.6
2. 2002 – 2003 106.8
3. 2003 – 2004 91.9
4. 2004 – 2005 100.8
5. 2005 – 2006 104.7
6. 2006 – 2007 105.1
7. 2007 – 2008 107.5
8. 2008 – 2009 106.2
9. 2009 – 2010 101.5
10. 2010 – 2011 102.0
11. 2011 – 2012 105.0
Source: Sugar India Year Book, 2012, p.84
The Table 1.6 reveals that, yield of cane as 101.6 per Hect./M.T.
in 2001 – 2002, it is increased to 105.0 per Hect./M.T. in 2010 – 2011.
44
Sugar Production in Tamilnadu
Sugarcane is an important commercial crop in India. It is
cultivated in about 4.5 million hectares of area with an annual
production of about 300 million tonnes of sugarcane (Satheeskumar, et
al, 2009). About 50 million farmers are dependent on sugarcane
cultivation for their livelihood and in addition, roughly an equal number
of agricultural labourers earn their living by working for cultivation and
management of sugarcane crop.
Table 1.7 Sugar productions in Tamilnadu
Sl. No. Year Sugar Production (1000 Hectares)
1. 2001 – 2002 326
2. 2002 – 2003 242
3. 2003 – 2004 941
4. 2004 – 2005 1126
5. 2005 – 2006 2170
6. 2006 – 2007 2599
7. 2007 – 2008 2192
8. 2008 – 2009 1614
9. 2009 – 2010 1299
10. 2010 – 2011 1893
Source: Sugar India Year Book, 2012, p.86
45
Sugarcane is the primary raw material for all the sugar mills as
well as cottage industries like Gur (Jaggery) and Khandasari industries
in India. About 4 lakhs of people have been employed directly as well as
indirectly in the sugar mills.
The sugarcane produced in India has been shown an increase
from 326 thousand tonnes in 2001 – 2002 to 1893 thousand tonnes in
2010 – 2011. During the year 2002 – 2003 sugarcane production fell
down to 242 thousand tonnes.
Table 1.8 Sugar factories in operation in Tamilnadu
Sl. No. Year Number of Sugar Factories in Operation
1. 2001 – 2002 38
2. 2002 – 2003 37
3. 2003 – 2004 35
4. 2004 – 2005 35
5. 2005 – 2006 36
6. 2006 – 2007 39
7. 2007 – 2008 39
8. 2008 – 2009 38
9. 2009 – 2010 42
10. 2010 – 2011 46
Source: Sugar India Year Book, 2012
46
It is evident from the Table 1.8 that, there is a nominal increase in
the sugar factories from 38 in the year 2001 – 2002 to 46 in 2010 –
2011, of which the number of private sugar mills is 27 in 2010 –
2011.
1.11 RATIONALE OF THE STUDY
The problem of industrial relations is equally serious in public
sector and private sector undertakings in India. Though the public
sector is expected to play the role of a model employer and influence
industrial relations in the country, it is generally believed that public
enterprises themselves are crippled with the problem of bad industrial
relations.
Tamilnadu contributes 7% of the countries total sugar production.
There are 46 sugar mills in Tamilnadu including three Public sector
mills. Tamilnadu Sugar Corporation Ltd (TASCO) was incorporated in
1974 with two mills and M/s Perambalur Sugar mills ltd, Eraiyur,
Perambalur District was established in 1976 as a subsidiary to TASCO
ltd.
M/s Perambalur Sugar mills ltd, Eraiyur is the only public
sector organization in Perambalur District. This was believed to
generate employment and help boost the economy of the district.
However, the performance does not seem to grow with the Capacity
47
Utilization is only 58 % in the year 2010 – 11. The loss in the same year
is around 9 crores compared to a profit of five crores in the previous
year. Total number of employees has also gone down from 900 to 573.
The fall in the profit and the fall in the employees have motivated
the researcher to undertake the study. As the downward trend is
suspected to be due to non-prevalence of a healthy Industrial relations,
this study is taken up.
Industrial relations occupy a significant place in the management
of the modern industry and business. The problem of establishing amity,
mutual understanding, harmony and cordial and peaceful relations
between labour and management has become more and more
important. Workers in allied industries are excluded from preview of this
research study. For example, manufacture of potable spirit, power
alcohol, confectionary etc. Farm workers working on the farm are also
excluded from the purview of this research study, in order to maintain
some sort of uniformity, consistency and acceptable criteria for the
research work.
48
1.12 SUMMARY
The geographical condition of India is more suitable for
sugarcane cultivation. It absorbs an area of 1.5 percent to 2 percent of
the cultivable area (Satheeskumar, et al. 2009). Sugar is the chief
driving force for the new economy of the poor. Sugar industry is the
second major industry that accounts nearly 8 percent of industrial
investment and provides employment to about 7 percent of the
industrial working force. There are 671 sugar mills in India and 157
sugar mills located in Uttar Pradesh alone. There are 46 sugar
production units in Tamilnadu of which 27 are in the private sector in
2010 – 2011. The sugar production has been increased from 18,528
M.T. in 2001 – 2002 to 24,394 M.T. in 2010 – 2011.
49
CHAPTER II
REVIEW OF LITERATURE
A lot of research studies on labour welfare and industrial
relations have been carried out by researchers, to find out whether
certain characteristics are common to all and could be observed in units
as having good industrial relations against those with chronic conflict.
Labour welfare measures and industrial relations in public sector sugar
mills have also become subject of scientific studies. An attempt is made
here to review the previous studies in the area of workers participation
in management, labour welfare measures such as monetary benefits,
general working conditions, employees grievance handling, trade union,
statutory welfare measures and industrial relations in the different
headings.
2.1 WORKERS PARTICIPATION IN MANAGEMENT
Kaufman (2009), revealed that social auditing is growing
within the corporate social responsibility movement. On the one hand,
the social audit is a means of attesting corporate observance with
voluntary labour standards. On the other hand, it could become a
means of legitimizing questionable labour management practices in
supply-chain relationships. Social audits are conducted in a wide range
of industries, but the largest number of audits is imposed on apparel
50
and shoe manufacturers-suppliers. The number and frequency of audits
does not necessarily ensure humane working conditions, or workers
empowerment. Here the impact of the garment industry’s voluntary
labour standards on the workforce in developing countries is critically
evaluated. It is proposed that worker-oriented participatory framework
that reshapes labour standards by eliciting and integrating labour’s
voice into existing voluntary standards. Hence the discussion uses
social audit as a vehicle to demonstrate the implications of
Schumacher’s concept of the right livelihood on management control
systems.
Discipline and disciplinary actions are also crucial aspects of
internal employee relations (Mondy and Noe, 2006).
Kannappa (2005), in his dissertation, has depicted that the
success of management practices lies in empowering employees in the
organization. The employees should be trustworthy and should be
ready to serve the organization best with all their potentials. Teamwork
thought may be encouraged. If the modern human resource concepts
are taken into account by the management, personnel management
practices will grow to excellence with full labour satisfaction.
Black and Lynch et al. (2004) found that employee voice has
a larger positive effect on productivity if made in the context of
unionized establishments.
51
As suggested by Brown (2004), the range of issues over
which bargaining takes place has narrowed in the last 20 years, but at
the same time the scope of collective bargaining had rarely gone
beyond pay and hours. Irrespective of the level of which bargaining
takes place, a central goal is to reach compromises and agree upon
rules for facilitating conflict resolution.
Panda (2004), study aimed at examining the relationship
between the industrial relations environment and work culture in a
private and a public sector organization belonging to the same industry.
The result of the study revealed that either a private sector or public
sector organization the industrial relations were mainly depending upon
both monetary benefits and non-monetary benefits provided to the
workers.
Mathan (2004), in his research pointed out that the industrial
relation is not a one sided game but depends on the reciprocal
understanding, faith and goodwill of all employees in industrial relations
system. Good and harmonious relations require active participation and
proper communication channels if not it leads to strikes, lockout,
absenteeism, indiscipline and even brutality.
Singh (2005), in his article, has avowed that, human resource
concepts that get packaged along with modern managerial philosophy
52
are likely to revolutionize the work place. The bottom line people want to
be cared of and respected.
Employee suggestion scheme can be described as a
formalized mechanism which motivates employees to contribute
constructive ideas for improving the organization in which they work.
Implemented ideas are pleased by a monetary award or some other
form of recognition – usually proportionate to the benefits generated. It
creates a climate of trust and confidence, job satisfaction and
continuous improvement in the company (Yusof and Aspinwall 2000).
According to Shapiro (2000), organizations are giving efforts
to involve employees to different degrees by which staff members are
encouraged, enabled and empowered to contribute towards goal
attainment. Employee empowerment is more relevant in today’s
competitive environment where knowledge workers are more prevalent
(Wimalasiri and Kouzmin, 2000; Jarrar and Zairi, 2002).
It can encourage employees to be creative and to take risks,
which are key components that can give a firm a competitive edge in a
fast-changing environment (Hymowitz, 2000).
Gollbach and Schulten (2000), instated in their article that, in
recent years European trade unions have launched various initiatives for
closer European coordination of collective bargaining, in order to
53
prevent downward competition on wages and working conditions within
the new macroeconomic framework of European Monetary Union
(EMU). This article gives an outlay of strategies and experiences to date
within the European Metalworkers' Federation (EMF). The main focus of
the analysis is on the attempt to establish interregional cross-border
collective bargaining networks between national or regional
organizations of EMF affiliates. The article summaries that the new
structure interregional cross-border collective bargaining has the
potential to create a new institutional and political basis for an
‘Europeanization’ of day-to-day collective bargaining at local level.
Employee involvement is one such example, where problem solving
groups (Guest 2000; Ichniowski, Shaw, and Prennushi et al. 1997;
Osterman 2000). Total Quality Management (Osterman 2000) and
profit sharing (Guest 2000; Huselid et al. 1995; Ichniowski, Shaw
and Prennushi et al. 1997; Michie and Sheehan 1999) are seen as
representing ‘communication’.
Industrial relations environment has been assessed in terms of
structural mechanisms for industrial relations management, trade
unions and collective bargaining, workers participation in management
and union management relationship. Effort has also been made to
identify major industrial relation issues and organizational initiatives for
betterment in the industrial relations environment. From the findings of
the study of workers participation in management the industrial relation
54
system is largely governed by legal and administrative framework, in the
organizations is quite clear. In the emerging market driven economy
union management relationship will need to be managed within the
framework of norms developed and mutually agreed upon by the
organizations.
The main idea of workers participation in the management is
to increase employees’ influence in the management by giving due
recognition to human element in the organization. The concept of
workers’ participation is an attempt on the part of the employer to build
his employees into a team which works towards the realization of
common objectives. (Kesari 1998).
According to Johnson and Redmond’s (1998) opinions that
employee involvement was operationalised through a process of five
essential steps like informing, consulting, sharing, delegating and
empowering.
Another study that found many of the same issues as those
proposed here, but through different theoretical frameworks, also
attempted to ascertain what drives the formation of employee attitudes.
In a study of a single site in which approximately 25% of the employees
were active in a particular group, the instigator found that certain
55
situational and personality factors were significant in their relationship
with attitudes towards participation (Kaminski 1993).
In replacing unilateral decision-making by the employer,
bargaining has introduced an element of industrial democracy into the
workplace (Cordova, 1990; Traxler 1991). Introductory work in this
area has examined both situational and dispositional variables in a
model of affect towards employee participation programs (Graham &
Verma 1991).
According to Balakrishnan’s (1990), in his dissertation with
the objective of study is to find out the relationship of personal, job
satisfaction variables and trade union with militancy of workers, to find
out the determinants of job satisfaction of workers and to find out
determinants of membership and participation of workers in trade union.
The finding of the study revealed that the most common factors
responsible for strikes namely economic factors (Quantum of Bonus)
and Non economic factors (Delay of Grievance Settlement). The
significant factors responsible for Ghero participation namely wages,
welfare facilities, supervisory behaviour and trade union membership
and participation. The determinants of job satisfaction namely wage,
working conditions and welfare facilities are significantly related.
56
The most crucial factors of union participation namely skill,
working conditions, supervisory behaviour and membership status. The
study suggested that the collective bargaining and conciliation were
followed for settlement of disputes. Analysis implies the need for an
interdisciplinary approach to study of Industrial Relations. The policy
should tackle inter union rivalry, multiplicity of unions, poor quality
leadership, political interference in union affairs, lack of general and
spontaneous involvement in union activities, absence of effective
means of workers participation in decision making.
The magnitude of employee participation in more modern
types of industrial relation is underscored by its link to job security and
job flexibility. In the contexts of both the ‘North’ and ‘South’ global
geographical regions increasing decentralization of decision making and
increasing job flexibility is discernable in workplace practices. The need
for job flexibility has many drives one of which is that workers might be
fearful of making productivity related suggestions because the
implementation of such changes could lead to the loss of their won job
(Aoki, 1988).
Collective bargaining is a process of decision making between
parties representing employer and employee interests which implies the
“negotiation and continuous application of an agreed set of rules to
govern the substantive and procedural terms of the employment
57
relationship” (Windmuller 1987). Another study that incorporated the
concept, wanted to scrutinize the general predisposition toward
participation (Verma and Mckersie 1987). Verma and Mckersie found
that self-selection for voluntary participation programs was affected by
this desire.
Raju (1985), in his study has revealed productivity as the
degree of effective utilization of each of the major factors of production
viz., land, capital, labour and organization. He feels that productivity of
an organization depends on the state that human resources are the
most important of all resources. Notwithstanding excellent machines,
technology and a layout provided in an enterprise, the man behind the
machine matters the most. His motivation, morale and creative culture
could make all the difference between success and failure of the
enterprise. Therefore, the author has insisted, that the management
should develop a climate of trust and concern for the men in the
organization: where there is no trust, employees would take no
worthwhile initiatives. Teamwork and harmonious industrial relations are
essential for excellence in performance.
Ghose (1983), in his article has attempted a study in different
countries including India. In the light of these experiments, the author
has identified the problem areas and the role of participative
management in the productivity improvement. He has stressed that the
58
participative management may be an effective approach for raising the
level of productivity, provided certain pre-conditions are fulfilled and the
problems are sought to be encountered seriously. For that, of course,
the scheme should be meaningful and significant in coverage to make
the workers interested in participation and the management also must
be ready in spirit to involve the workers in the process of decision
making for improving labour productivity.
Rao (1983), has highlighted, the principle of employee
participation in management provides a means of self-identification and
self-realization in work, emotional and other psychological needs of men
and women at work, by eliminating any feeling of futility, isolation and
the consequent frustrations that they have to face in a normal industrial
setting. This can be achieved by satisfying their social and
psychological needs, besides economic ones. Workers participation in
management is one of the most noteworthy modes of resolving
industrial conflicts and encouraging among workers, a sense of
belongingness to their establishments. Workers participation in
management is an extension of the political process to work place
relations.
Westley, William and Margaret (1971) suggested that in poor
countries, which employ poorly educated unskilled, the workforce’s
interest in participation programs would be low because workers
59
struggle for survival and will not be attracted by programs that offer
mainly social and psychological rewards.
Blumbergy (1968) cited rich evidence to support the idea that
work dissatisfaction can be reduced by worker participation whatever
the context.
In his article, Virmani (1955) has found out that the Indian
industrial system has all along been adversarial with collective
bargaining approach being its main stay. Over the past few years, a
relationship based on collective bargaining and principles of
participation has emerged. A discussion of the major findings of an in-
depth study of eight organizations where both practices were present
lends support to the author’s contention that collective bargaining and
participation need different attitudes and hence cannot co-exist. In any
new model of industrial relations the adversarial approach and collective
bargaining must give way to participative structure and the development
of the institution.
According to the report given by The Royal Commission on
Labour (1929-31) if work committees are given proper encouragement
and the past errors are avoided they can play a useful role in the Indian
industrial system. The management should give an opportunity for the
60
workers to part in the various decision making process and the workers
should rightly use the given chance to exhibit their potential.
2.2 COMMUNICATION PROCESS
First identified in the 1940s, systems theory achieves insights into
communication (Heath & Bryant, 2000). Especially influential on
organizational communication, systems theory explains how and why
people form groups, each of which is a system as well as part of a
larger system. Its focus is on the whole system rather than on its parts,
and how these parts interact to affect the whole system.
Infante, Rancer and Womack (1997) define a system as
hierarchical — a set of interdependent units working together to adapt
to a changing environment. It can be divided into smaller subsystems or
incorporated with other systems to create larger systems, referred to as
suprasystems or environments (Heath & Bryant, 2000). A systems
approach to organizational communication expands the basic model of
sender-receiver to feature communication networks; this explains how
systems adapt to their environments (Heath & Bryant, 2000).
As previously stated, PA is composed of three basic subsystems:
internal information, media and community relations. Although the
military mainly uses each subsystem interdependently, the entire
system is much more than the sum of the contributions of each
61
individual part. As Infante, Rancer and Womack explain it, “every
system is like a cake in the sense that if you take away or change one
individual part, the entire system is affected” (1997, p. 91). The focus of
organizational communication is on the whole system, rather than on
parts of the system (Katz & Kahn, 1996).
Communication systems, such as public affairs, are “open”
systems — they interact with their environments. Open systems
“continually take in new information, transform that information and give
information back to the environment” (Shockley-Zalabak, 1999, p. 43).
By contrast, “closed” systems are characterized by a lack of input
communication, making it difficult to make good decisions and stay
current with the needs of the environment (Shockley-Zalabak, 1999).
Closed systems lean toward entropy, chaos or total disorganization
(Infante, Rancer & Womack, 1997). Applying the open systems
approach to military PA requires a purposeful sensing of the
environment to anticipate and detect changes that affect the
organization’s relationships with its publics (Cutlip, Center & Broom,
1985). Ultimately, the systems approach should serve as the foundation
for a more effective management practice.
2.2.1 Development of Organizational Communication
“Communication serves as the basis for control and coordination
in organizations; it also provides information essential to effective
62
completion of the organizational mission” (Poole, 1978, p. 493). But,
what “exactly” is communication? In layman’s terms, communication is
the interchange of information between two or more persons. Farace,
Monge and Russell (1977) define communication as the exchange of
symbols that are commonly shared by the individuals involved, and
which evoke quite similar symbol-referent relationships in each
individual. Organizational communication goes a bit further.
Organizational communication is “both similar to and distinct from other
types of communication” (Shockley-Zalabak, 1999, p. 28). It is more
than the daily interactions of individuals within organizations, it is the
process through which organizations create and shape events
(Shockley-Zalabak, 1999).
The study of organizational communication centers on processes
of interaction means by which people obtain information, form opinions,
make decisions, merge into the organization, leave the organization and
create rapport with one another (Shockley-Zalabak, 1999). Through
communication, people coordinate their actions to achieve individual
and organizational goals (Shockley-Zalabak, 1999). Effective
organizational communication within the PA arena is critical. The
public’s perception of credibility and validity of any PA office depends
largely on the successful transmission of verbal and nonverbal
messages and the sharing of information at all links (subsystems)
through the organization’s channels.
63
According to Huse and Bowditch (1973), an organization is
effective and efficient when it has the ability to be integrated and to
consider three different perspectives simultaneously: structural design,
flow and human factors. Looking into this further, a literature review by
Campbell (1977) found that more than 30 different criteria were used
for the measurement of organizational effectiveness (Praeger, 1986).
These measurement criteria ranged from specific aspects of
organizational effectiveness to a global view. Campbell’s (1977) review
also finds some of the measurement criteria to be inconsistent, in that
few studies used multivariate measures of effectiveness and the same
criteria were rarely used across studies (Praeger, 1986).
Herein lies the basic theme of this paper, suggesting that military
PA organizations, in an effort to gain greater efficiency, should attempt
to both integrate and simultaneously consider its three subsystems
(internal information, media and community relations) as well as best
practices in the civilian corporate PR arena, when approaching
organizational issues.
2.2.2 Cross-functionality
Cross-functionality is the idea that members from different
departments of a unit or organization form teams, bringing a variety of
talents and resources to bear on the accomplishment of the overall
mission of the unit or organization (Proehl, 1997). This method has
64
proven positive results within AT&T and Hewlett Packard (Jayaram &
Ahire, 1998). It also has application to PA in two ways: 1) Cross-
functionality can be applied to the relationship between PA and other
organizations within a command; and 2) it can be applied within the PA
organization itself — this is the idea behind the three-pronged
approach.
Cross-functional teams consist of people who serve in different
departments or perform different functions within the organization
(Wellins, et al., 1994). Some companies establish permanent and
temporary cross-functional teams. The permanent teams work on
issues companies face on a routine basis, while temporary teams are
formed to handle special projects such as implementing new
procedures, reorganizing procedures and processes, or solving
unexpected problems.
By their nature, cross-functional teams offer members
opportunities to receive training and experience outside their areas of
expertise in order to meet the goals of the team (Wellins, et al., 1994).
This has several benefits including team flexibility, understanding
among the functional areas of how the others work, and an increased
sense of ownership and pride among team members.
65
Applications for Public Affairs at the Command Level
Previous studies suggest the idea that marketing is here to stay
and that successful companies must integrate marketing departments
into their strategic planning or suffer for it in their profit margins
(Shipley, 1994). The difficulty is successfully integrating marketing, or
in the military’s case public affairs, into a strategic operational role after
having been a support function for so long. Many people within
organizations have preconceived notions about the value of marketing
or PA, and based on outdated ideas that do not consider the important
role they play in the overall mission accomplishment; resist their
inclusion into the upper echelons. Shipley suggests a number of ways
to combat this: 1) It is essential that the role of PA be thoroughly
understood and communicated to all levels by the commander. 2)
Commanders should ensure their PA officers are “politically shrewd,
experienced, tough and able” (Shipley, 1994, p. 20). 3) Training should
be offered to all department heads and essential personnel with the
goal of altering false perceptions. 4) Commanders should build internal
motivation within the command. PA practitioners need to understand
that achieving a shift in mindset like this is extremely difficult. With that
in mind, practitioners need to do all they can to fit in. Some suggestions
include “building a professional image for [public affairs]; ensure
frequent communication and personal interaction with other
departments; do not laud the importance of [public affairs]; recognize
66
the equal importance of other [departments]; acknowledge their
viewpoints, strengths and constraints; build allies and tight relationships;
be tactful, amicable and harmonious; go to “war” as a last resort; involve
top management in disputes as a last option; be unselfish about the
‘ownership’ of good ideas; use finance and other resources wisely; and
always stress the commonsense view” (Shipley, 1994, p. 20).
Cross-Functionality Applications for Public Affairs at the Office
Level
Many of the theories used in developing cross-functional teams
find their origins in small group organizational communication theories.
A model that has utility for cross-functional application in PA, both at the
organizational and departmental levels, is discussed by Tjosvold
(1991).
In this model there are two inputs:
1. The composition and structure of the group and
2. The resources and structure of the organization
The inputs work together forming the group process. The process
interacts with the task to determine the group’s effectiveness. Using
those inputs, the group develops a process to work together, and then
applies that process to whatever tasking comes down the road. The
nature of the tasking and its interaction with the group’s processes
67
determines the effectiveness of the group’s output. Gladstein’s Model of
Group Behavior explains how the PA three-pronged approach can be
more effective
Public Relations Theory
Public relations is the attempt by information, persuasion and
adjustment to engineer public support for an activity, cause, movement
or institution (Bernays, 1955). The field borrows theories of
communication from the social science disciplines; however, there is no
one theory that is PR. The field also lacks a sense of identity, failing to
define its purpose, scope and dimension (Leeper & Leeper, 2001).
There appears to be a widely held definition that PR is “the manipulation
of public behavior for the benefit of the manipulated publics as well as
the sponsoring organizations” (Grunig, 1989, p. 18 – 19). Grunig’s
(1989) research explains PR using four models. Grunig calls them
68
“press agentry/publicity,” “public information,” “two-way asymmetrical”
and “two-way symmetrical” (Grunig, 1989, p. 29). According to Grunig
(1989), the four models are representative of the goals, values and
behaviors held or used by an organization when practicing PR.
2.3 WELFARE MEASURES
Kannan (2005), labour relations increasingly became formal,
impersonal and contractual. The labour relations retained the basic
characteristic of stratification and segmentation embedded in the
traditional social order. The former relates to the hierarchy of
occupations depending on the nature of the job, earnings and security
and the latter would refer to the boundaries existing within a given
stratum of the labour market.
KCP limited is always ahead in improving the working and
living conditions of its employees and it has done a lot in respect of
providing welfare measures for its employees in the areas of Education,
Medical, Housing, Transport, Sports, Recreational facilities, etc.
The study is undertaken to know the satisfaction levels of
employees about labour welfare measures in KCP limited (Cement
Division). The convenience random sampling method is adopted to
carry out the study by the researcher. Out of 925 employees, 90 are
selected covering almost all the departments. A questionnaire is used
69
for present study to know the opinions of the employees on each
statement. The results of the research reveal that majority of the
employees are satisfied with all the welfare measures provided by the
organization. Effectiveness of Labour Welfare Measures; i. Enable
workers to live a richer and a more satisfactory life, ii. Contribute to the
productivity of labour and efficiency of the enterprise and iii. Enhance
the standard of living of workers by indirectly reducing the burden on
their purse.
Mookherjee (2012), in consonance with the corporate
objective of keeping employees happy so that they can put their heart
and soul into the work assigned to them, the Tiruchi Unit has evolved a
widespread welfare program. Important among them are subsidized
canteen facilities, medical facilities including occupational health
services, education facilities for the children of employees, transport
facilities for carrying employees to and from the factory, group
insurance scheme, and conveyance allowance to the physically
handicapped employees, Level Travel Concession, Leave Encashment
and township facilities with provision for recreation, sports and cultural
activities. In addition, statutory benefits such as gratuity, provident fund,
family pension, profit sharing schemes and a plant performance bonus
scheme form part of the fringe benefits extended to the employee. An
average expenditure of Rs.1, 150 per month for employee is said to
have been incurred by the Tiruchi Unit.
70
Mishra and Bhagat (2010), in their research article, stated
that labour absenteeism in Indian industries can be reduced to a great
extent by providing good housing, health and family care, canteen,
educational and training facilities and provision of welfare activities. The
principle for successful implementation of labour welfare activities is
nothing but an extension of democratic values in an industrialized
society.
Sarkar and Varkkey (2008), Firstly, Tata Steel’s human
resource management policy is very sound and progressive including
that Tata Steel was the first to introduce various employee welfare
schemes in India much ahead of introduction of the same by
Government of India as legally.
In the view of Chaudhuri, (2007), study, HR policy was being
made flexible. From leaves to compensations, perks to office facilities,
many companies are willing to customize policies to suit different
employee segments. The older employees want social security benefits,
younger employees want cash in hand because they can’t think of
sticking to a company for many years and retire from the same
company. Therefore, one jacket fits all “will not be right to motivate the
talents and retain them”
Reddy (2005) in his article has stated that among the species,
human being is the finest one who needs skills, talent, aptitude,
71
motivation to deliver goods and service time with quality. Labour is
highly perishable which needs constant training for upgradation of
information. If manpower is utilized optimally, certainly the Nation-State
grows rapidly. In every employee / citizen the habit of imbibing learning
curve is to be naturalized.
Stout and Linn (2002), the twentieth century witnessed
remarkable reductions in the number and rate of occupational fatalities
and injuries. However, many preventable injuries and deaths still occur.
Barriers to progress in occupational injury prevention are discussed,
along with strategies for overcoming them. In mining, the frequency of
death has dramatically declined over the century. The latest figures
from the BLS indicate that less than 6000 worker deaths from injury
occurred in 2000. Catastrophic events have promoted attention,
resources, and action on workplace hazards and risks, resulting in
sweeping changes, including new protective laws. Science based
approaches to prevention have contributed to progress. Multidisciplinary
collaboration among injury prevention researchers, and collaboration
and cooperation among multiple sectors, has improved the relevance
and application of injury prevention research and development. Barriers
to further progress include lack of evaluation of the effectiveness of
prevention strategies and technologies, including cost effectiveness,
lack of widespread implementation of knowledge, effective prevention,
and lack of efficient transfer and implementation of prevention of
72
knowledge and products to the workplace. Evaluation and
implementation of prevention efforts are most successfully achieved in
partnership between researchers and the industry at risk, which
requires outreach efforts on the part of the occupational research
community.
Report of National Commission on Labour (2002),
Government of India, made recommendations in the area of labour
welfare measures which include social security, extending the
application of the Provident Fund, Gratuity and unemployment
insurance, etc.
According to the report of The Training Effectiveness (1999),
the Occupational Safety and Health Act of 1970 (Public Law 91-596)
was enacted to assure, so far as possible, safe and health working
conditions for every working man and woman in the nation. The Act
mandated improved research, regulations, and training aimed at
reducing the incidence of occupational injury and illness.
Loos and Diether (1999), recommend substituting problem-
based instruction for content-laden, didactic instruction to achieve the
ends with limited training resources. Problem-based instruction
encourages independent, lifelong learning. Such instruction exposes
learners to a wider range of information than would likely be covered in
a traditional lecture format. Since problem-based learning is self-
73
directed, it is adaptable to students with different learning styles and
cultural beliefs. These benefits are equally applicable to professional
education and workplace training.
Cohen and Colligan (1998), Occupational Safety and Health
Act (OSHA) establishes nearly 100 standards for controlling workplace
hazards containing provisions for worker training to reduce risk factors
for injury and disease. Other standards limit certain jobs to workers
considered competent by virtue of special training.
Dunn and Griggs (1988), in their educational research points
out that, such constructs frequently relate to learner attentiveness,
ability and motivation to learn, learning style, and individual coping
mechanisms when ingesting new material.
Each year, corporate America provides nearly 2 billion hours
of training to approximately 60 million employees at a cost of $55 to $60
billions (Industry Report 1997). Effectiveness research can maximize
the impact of this investment on worker safety, productivity, and profits.
To equip America’s workforce with the skills necessary in today’s
economy, the U.S. Departments of Education and Labour have recently
cosponsored several initiatives that reflect the national importance of
worker training.
74
Lobo (1986), has made an attempt to study the personnel
management practices in public sector industries. This study was
conducted at Visvesvarya Iron and Steel Industry, Karnataka. The study
covers the personnel practices such as personnel in public sector
industries, personnel structure at VISL, personnel policies, selection
and succession, remunerating the personnel, welfare measures and
industrial relations. The primary data were collected by interview with
workers. With the method of simple random sampling, 60 officers, 230
workers and 15 union leaders were interviewed.
Rao (1986) in his article opinioned that professional bodies
like National Institute of Personnel Management should constitute a
standing committee to monitor the proceeding in the Parliament
regarding the labour welfare measures.
Gupta (1986), in his study, has stated that the productivity of
any organization can be improved by application of capital intensive
high technology scientific and modern techniques and attitudinal change
of employees by improving work culture. The author has said that the
study of many organizations in developed and developing countries
have proved that technology itself may improve productivity but it
cannot sustain it for a long time. It is necessary that an integration of
high technology, scientific technique and work culture is continuously
followed up through detailed HRD process covering every section of
75
employees. High technology is playing an important role and this has to
be imparted to lower level of employees by training them in theory as
well as in practice so that the knowledge is applied to work situation.
The imparting of knowledge requires massive and continuous education
programme.
A study conducted by Saiyaddin (1983), observed the
purpose and cost of non-statutory welfare activities for the
organizations. Five public and six private sector organizations were
selected for the study. The study brought out an important conclusion
that the most predominant theme in the minds of organizations when
they think of the voluntary welfare measures was not only the output
and efficiency but also increasing loyalty and morale. In respect of cost
the study revealed that the public sector organizations spend more on
welfare activities, as compared to private sector. While public sector
spends more on transportation and recreation, private sector was found
to be spending more on housing according to the study.
Cropper (1977) gets the same result for preventive health
care with age. In general, since the risks of different illnesses show
different lifecycle patterns, the demand for prevention depends on the
specific intervention, where intervention is defined as any attempt to
intervene or interrupt the usual sequence in the development of a
disease. For some preventive actions like exercise, the health benefits
76
are realized much more quickly by older people and so will be not as
heavily discounted as when young people consider the intervention.
A study conducted by Koshan (1975), pointed out that in spite
of statutory provisions and enforcing agencies in India, the welfare
facilities were absent and the cement industry was the only one where
provisions were adequately enforced. The study suggested the need for
overhauling and tightening of the machinery of inspection. Appointment
of welfare inspectors for different industries, distinguishing the duties of
factory inspectors from those of welfare inspectors to submit annual and
quarterly reports and empowering the welfare inspectors to levy fine in
case of default, were some of the steps suggested in this study.
According to Grossman and Rand’s (1974) study treat
prevention and cure as separate inputs into the household health
production function. Grossman and Rand believe that groups with low
depreciation rate of the health capital stock demand preventive health
care and groups with high depreciation rate of the health capital stock
demand curative health care. The awareness of health care allows for
prevention and cure to be treated as substitutes by consumers. A higher
endowment of health increases demand for health investment, so
different in endowed health is magnified in terms of attained longevity.
The research work of Misra (1974), aimed at sociological
analysis of the labour welfare problems of sugar industry. The analysis
77
was based on the first hand data collected from the sugar factories of
Eastern Uttar Pradesh. The study concluded that the conditions of work
in sugar factories of eastern region of Uttar Pradesh were not very
satisfactory particularly in the respect of safety measures, cleanliness,
sanitation, latrine facilities, drinking water, rest rooms, etc. It also
pointed out that the provisions for casual leave and holidays, lighting,
housing, medical, education, are far from satisfactory.
According to Grossman’s (1972) seminal model, the
individual’s health capital stock determines the utility flow as well as the
time available for market and non-market productive activities. The
demand for health input is derived from the demand for health capital
which is viewed as a household health production function with time and
medical care as inputs. In the seminal models of Grossman, prevention
is taken as an investment decision to add to the health capital stock
since the higher the health stock, the lesser the time spent ill. However,
this model does not distinguish between preventive and curative care.
In Grossman’s et al (1974) model, health capital is assumed
to depreciate at a higher rate as people get older. Thus, if the price
elasticity of demand for health is lower than unity, the derived demand
for curative medical care increases with age.
The study of Zachariah (1954), based on a sample survey of
manufacturing undertakings in Bombay, covered welfare services and
78
working conditions while surveying the factors affecting industrial
relations. It was observed that better working conditions and adequate
provision of welfare services would contribute to harmonious industrial
relations.
Ramasathyanarayana and Jayaprakash (2012), carried out
his research work at KCP cement division, with an objective to found
out that the existing labour welfare measures and the level of
satisfaction. This study reveals that majority of the employees are
satisfied with all the labour welfare measures provided by the
organization.
Swapna (2011), has concluded in her article that, the modern
era of planning for prosperity, every nation appears to be concentrating
all its efforts to evolve an affluent society. In its broader connotation the
term welfare refers to a state of living of an individual or a group in a
desirable relationship with total environment, ecological, economic and
social.
Satyanarayana (2010), in his research article, revealed that,
labour welfare measures have an impact on determining the quality of
work life by increasing their satisfaction level towards welfare measures.
Frege and Frege (2005), in their research article, pointed out
that Industrial Relations (IR) research faces various pressures of
79
internationalization. Not only do global economic forces increasingly
shape the subject of the discipline, employment relations, but also the
academic community itself is becoming more international. The article
discusses whether and in what ways IR research is affected by these
trends. It is based on a comparative, longitudinal study of journal
publications in the USA, Britain and Germany. The findings reveal
significantly different patterns of industrial relations research across the
three countries.
In particular, the strong variation between US and British
research patterns challenges the common notion of a homogeneous
Anglo-Saxon in conducting social science research. The analysis
suggests that despite growing internationalization, industrial relations
continue to be strong embedded in nationally specific research cultures
and traditions.
Ali (2005), study analyzed employment relation systems of
three Asian countries-China, India and Korea- and makes a case for
diversion in employment relation systems. The study concluded that the
Globalization is here to stay; it would be ridiculous on the part of the
nations of the world to close their eyes to and wish it away. Any country
that wants to be on the economic map of the world would have to enter
this competitive environment. In order to face the competition, flexibility
is imperative; therefore the researcher sees in the three countries that
80
there is a trend towards flexibility. But the researcher have also seen
that the needs, types and levels of flexibility in different countries is
different based on the factors discussed.
There is no doubt that in the short run there is convergence
towards workplace flexibility owing to the pressures of international
competition, but in the long run in the three countries that the
researcher has discussed the future of flexibility will depend on the
interaction of the key players in their respective industrial relation
systems.
Sousa-Poza (2004), research article pointed out that, in most
European countries, there is some evidence that jobs became, and to
an even greater extent were perceived to have become, increasingly
insecure in the 1990s. In Switzerland, where unemployment has long
been far lower than the European average, unemployment increased in
the same period. In general, job stability has remained remarkably
constant in the past decade, and instability far below the European
average. Only with regard to voluntary job-to-job mobility can a
significant increase in the second half of the 1990s be observed;
involuntary turnover has actually decreased.
Hartog and Verburg (2004) have outlined the importance of
having an overarching philosophy (a mission statement and HRM
strategy) to the performance of a firm. Most of the innovation literature
81
talks about the need for internal champions of ideas and new systems
to combat inertia. The literature on the effectiveness of innovation in
workplace practices has examined the effects of adversarial labour-
management attitudes and employee resistance to change, installing
the introduction of workplace practice innovations. Often these are
boom of low trust levels between labour and management.
Ruyter and Burgess (2003), article compared the trends and
issues affecting labour security in the UK and Australia, using an
adaptation of Standing's 1997 typology. The increased polarization and
variability of hours worked, declining union densities and increased
wage inequality provide evidence of growing labour insecurity in both
countries. The growth of labour insecurity represents the reciprocal
impact of increased employer dominance in the workplace and
government pursuit of labour flexibility. Growing labour insecurity casts
doubts on the supposed benefits for EU economies of the Anglo-Saxon
model of deregulated labour markets. The last part of the article
considers measures to counter increased insecurity.
Jyoti and Sidhu (2003), study aimed to find out the changes
in the industrial relations scenario of Punjab due to changes in the
composition and structure of industrial base of Punjab after the
economic reforms introduced during the nineties. The study found that
the number of work stoppages has reduced in the post-reform period in
82
Punjab. But, at the same time, work stoppages are lasting for longer
durations and involve more workers and thereby, are more voluminous
in the post-reform period in Punjab. Furthermore, due to the inefficiency
of conciliation machinery in discharging its function, the workload of
adjudication machinery has increased. The study concludes that
economic restructuring has resulted in the shift of balance of power in
favour of employers. Lockouts are being used as a powerful weapon to
counter the increasing organized power of workers in the post-reform
period in Punjab.
Labour department, tenth five year plan 2002-07, the labour
department implemented as many as 26 labour legislations with the
objective of providing not only monetary benefit like minimum wages,
overtime, bonus etc to the workers, but also to ensure their health and
safety during the course of employment.
Cambridge (2001), study reviewed that the globalization
process and how it impacts the standards of employee relations ethics
in the United States. John Dunlop’s industrial relations systems
framework is employed to assess how the globalization process has
altered the ideology that binds the industrial relations system together
and the body or rules created to govern behavior in the workplace and
work community. The researcher discusses how globalization has
globalized and altered the context of industrial relations systems around
83
changing standards of employee relations ethics. The research also
review the significance of why there is national difference in the
contexts of industrial relations systems relating to the technological
characteristics of the workplace, the product and factors markets, and
the locus of distribution and power, are disappearing and being
integrated rapidly into the global economy. Additionally, the study
discusses the role of multinational corporations in the globalization
process and why the emerging global industrial relations system is
altering the standards of employee relations ethics in the American
workplace.
Dabscheck (2001), the research article examined the
operation of an industrial relations system through the notion of a
dominant paradigm; and the struggles of protagonists to shift the
paradigm in different directions to enhance their chances of success in
future struggle. The dominant paradigm operating in Australia is
contractualist regulation, a regulatory system tendered and served by
the Contractualist Regulation Club. Major issues examined in the review
include the High Court’s decision on allowable award matters; employee
entitlements; failed attempts by the commonwealth government to
introduce various legislative changes; policy position of the Australian
Labour Party and the Australian Council of Trade Unions.
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Human resource specialists play a crucial role in employee
relations. For example, if they develop communications and procedures
that apply appropriate information tools in a timely manner, employees
can access more abundant, higher quality information and can
communicate more effectively with management, resulting in being
more effective in their work. Managers and human resource specialists
must work in partnership to ensure effective communication to foster
between employee relations climate, since to develop and sustain such
relations, employers must keep employees informed of company
policies and strategies (Gomoz-Mejia 2001).
In the present competitive business environment, Indian
organizations are feeling compelled from within to reorient their
employment relationships (Budhwar, 2000; Sodhi, 1999). As Sousa
(1999) describes, the Indian government built on colonial labour
institutions and regulations to fashion an industrial relations system that
sought to control industrial conflict through a plethora of protective
labour legislation. The industrial relation system was influenced by the
strong ties between the major political parties and labour forged in the
struggle for independence. Under this regime, many aspects of
workplace industrial relations and human resources were regulated,
including detailed laws on health and safety, leave, dismissal and
layoffs, so as to avoid sources of conflict which might undermine
economic development. The industrial disputes act mandated that
85
employers could layoff workers only temporarily (180 days with
compensation), and provided that employers must seek government
permission for retrenchment and even closure of factories, which was
rarely given in view of the close ties between labour and political parties
(Kuruvilla and Erickson 2002).
Additionally, to foster good employee relations, managers
must listen to and understand what employees are saying and
experiencing and provide employees with the freedom to express
grievances about management decisions. Such employer-employee
behavior is part of the corporate culture, which can have an impact on
employee expectation and in turn productivity (Ivancevich 2001).
Sivananthiran (1999), the role of the state in the industrial
relations depends on the ideological (socialist, communist, or neo-
capitalist persuasion), political (neo-colonial, democratic, dictatorships)
and socio economic (protectionist and neo-liberal policies) orientation.
Heskett et al. (1997), proposed that quality of work life, which
is measured by the feelings that employees have toward their jobs,
colleagues, and companies, would ignite a chain effect leading to an
organization’s growth and profitability in the end. To improve the quality
of work life of the employees, companies are now emphasizing on
cordial employees relations and adopting a human resource strategy
that places high value on employees as organizational stakeholders.
86
To survive and prosper, they have to prepare and develop
their employees so as to compete with overseas organizations in skills,
efficiency and effectiveness (Sparrow and Budhwar, 1997; Ratnam,
1996). After years of organizational restructuring and work re-
engineering, management comes to recognize that a productive
workforce is increasingly important to attain sustainable competitive
advantage for business organizations on a global basis (Bohel, et al.
1996).
Standing (1997), done a study based on the international
trends to more flexible labour relations in terms of the erosion of several
forms of labour-related personal security and the evolving forms of
labour market regulations. Standing suggests that growing labour
market flexibility has been accompanied by a reconstitution of the social
wage and a profound re-regulation of labour relations, not ‘de-
regulation’, which is an inappropriate term to describe any labour
market. The flexibility and market regulation has influenced the extent
and character of labour fragmentation, which is creating new challenges
for social and labour policy. The study concludes by sketching three
possible routes of reform, one stemming from the former era of social
regulation, the second extrapolating from the currently dominant market
regulations perspective and the third linked to the desirable extension of
democracy and the promotion of redistributive justice.
87
Morley (1996), paper used the evidence from organizations
with nearly 200 employees in several countries across Europe to
explore the proposition that industrial relations in Europe is becoming
more convergent around a non-union HRM model. The evidence
indicates that, although there are some similar moves taking place,
national patterns remain distinctive, the IR/HRM distinction may be
sustainable in Europe and there are significant elements of continuity in
industrial relations in Europe alongside the changes that are taking
place.
As Switzerland is a small, open economy with weak union
power and employment protection legislation, this study casts doubts on
the extent to which exposure to globalization can influence job
instability. Instead, consensus- and stability-oriented industrial relations
and management practices, as well as the state of the external labour
market, appear to shape both job stability and security.
Workplace philosophy is not often mentioned as integral part
of innovative approaches to HRM and a key determinant of firm
performance. Yet HRM is often associated with organizational culture
(Guest and Hoque, 1994; Legge, 2001; Mabey and Salaman, 1995)
and management attitudes and personal belief systems certainly
influence the HRM system and its openness to new ideas (Howell
88
2005). The dominant ‘culture’ of a firm may influence the HRM policy
and practices adopted by organizations and vice versa.
Baker, Gibbons and Murph (1993), show how trust is needed
for many innovative HRM practices to work, and can be ‘proved’
through information exchange. But according to Ichniowski and Shaw
et al. (1997) once organizations have become established and culture
has become embedded there is strong resistance to change. They
show that particularly in the older plants “with their long histories of
adversarial relations under more traditional work practices, workers and
supervisors provide stiff resistance to any new work practices.” The
switching costs in such scenarios may be greater than the direct cost of
introducing the practices.
Arthur (1992), study tested the "strategic choice" proposition
that variation in workplace industrial relations policies and practices is
related to differences in business strategy. A cluster analysis of data
from a 1988-89 questionnaire examining workplace industrial relations
and business strategies in U.S. steel mini mills suggests that the
industrial relations systems of these mills can be broadly categorized as
emphasizing either cost reduction or employee commitment; similarly,
the business strategies of the mills appear to stress either the
manufacture of a few products in large quantities at the lowest possible
cost, or more flexible manufacturing, with products marketed on some
89
basis other than cost. Further investigation shows a significant
association between the type of workplace industrial relations system
and the business strategy choices in these mills.
Strauss and Sayles (1988), in his book provides a broader
perspective that was provided by specialized works dealing with
personnel problems from the one-sided viewpoint of specific disciplines,
such as industrial psychology, sociology, labour-relations or industrial
engineering. Each of these fields provides important insights, but the
purpose has been to investigate various contributions and apply them to
personnel problems. Thus the use of considerable theories is made, not
as abstract propositions but as tools for analyzing and solving real life
problems. The major purpose is not just to build a bridge between
managerial practice and the behavioural sciences but to lay firm
foundations in both areas as well.
Rao (1982), has revealed that the management did not take
initiative to settle the disputes. Most of the disputes were settled with
State intervention only. The study pointed out that a separate
department for industrial relations should be created to look into the
problems of industrial relations and to promote cordial relations between
the employees and management.
According to Deal and Kennedy’s (1982), opinion, successful
firms distinguish themselves from less successful ones through their
90
clearly articulated and shared norms and values regarding
organizational functioning.
Pareek (1981), has explained that the concept of human
resource as distinct from personnel emphasizes not only on individual
persons but also on groups of people functioning in an organization.
Human resource management is primarily a system that gives
importance to the employee and his supervisor. He stressed that all
activities of human resource management should help to strengthen this
two-person relationship and increase the trust and mutual
understanding between the so-called superior and the subordinate.
Industrial relations in India are conditioned not just by the legal
framework and history but also by societal expectations. According to
Indian social norms a number of social responsibilities are behold on
the employer towards the community in which the firm operates. In
exchange for being allowed to establish its operations in a particular
community. The firm is expected to provide something in return to the
local community.
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2.4 TRADE UNION RELATIONS
Meardi (2009), has opined, relocations within an enlarged
Europe are often revealed as an unavoidable destiny or irresistible
threat for workers. This study outlines a number of contingent factors
which determine how serious the threats are and how feasible is an
effective union response. Such factors are then tested through in-depth
case studies of 12 plants in the automotive components sector (where
cross-border competition is particularly strong) showing how varied can
be the scenarios for industrial relations in multinational companies.
The research article found out the trends in outsourcing
industry in India vis-a-vis the role played by the industry related factors
in rebuffing (or accepting) unionization of its workers. The examination
is based on the review of extant literature on working and employment
conditions of BPO-ITeS and call centre employees. The paper
highlights the role of key policy actors in the external environment and
internal (organizational or contextual and individual) dispositions that
were instrumental in the failure of the unionization effort in the
beginning. It shows the significant impact of the competitive pressures
in the changing nature of employee relations in Indian BPO-ITeS
industry.
Ratna (2009), has stated the importance of recognition of
trade union through which management acknowledge and accept a
92
trade union as representative of some or all the workers in an
establishment or industry, and with which it is willing to conduct
discussions on all issues concerning those workers. When such
acceptance also includes the willingness of management to bargain
with that union may be termed as bargaining agent or agents.
Satheeskumar and Selvaraj (2009), in his article published
in the journal has stated that there is a tension between the role of trade
unions and workers’ congresses, which parallels the tensions discussed
in the Dutch situation. Branine discusses the contradictory impact of
the labour market improves the status of Chinese workers and shows
how the Chinese State has reacted to the negative impact of the reform
by passing a stream of labour laws designed to minimize industrial
unrest.
Pandey (2007), in his dissertation adopted the random
sampling technique for the purpose and interviewed with the help of
questionnaire. The whole universe has been classified into three
groups, - viz. workers, executives and trade union leaders/office bearers
of Bokaro Steel Plant. The research proposed to select nearly 160
workers, 70 executives and 70 trade union office bearers/leaders of
Bokaro Steel Plant. The study has been divided in Four parts First part
is introductory whereas the second part deals with various segments of
labour management relations. The third part analyses the various
93
aspects of the industrial relations concerning to trade unions on the
basis of primary data of Bokaro Steel Plant. The fourth part provides the
summary of the study. The study concludes that the industrial process
involves workers, executive, union leaders and the government
machinery. Trade Unionism has emerged in the industrial world as a
protection of the rights and interest of the workers. From the initial
stage of militancy the trade unionism in the modern world has come as
an active co-operator in the process of production. Although by and
large their focus is economic demand seeking for improvement in
wages, working and living conditions of the members yet their role and
increasing contribution in national development, shaping of national
policies cannot be ignored. The management should comprehend the
importance of workers as a integral part of organization for the
production and productivity which will open the path for amicable
industrial relations as well as industrial stability of the organization as
well as for country as whole. Industrial peace is possible only when the
management and the workers co-operate in their efforts.
Trade unions should concentrate their energy and attention in
a more constructive way to users in an era of industrial peace. The
judicious recognition of trade unions by respective managements and
concerted education of the workers are expected to develop the trade
union movement of its prevalent gangrene of inter and intra-rivalry. The
employers gained assistance from the unions in implementing their
94
corporate programmes, whereas the unions enjoyed additional
opportunity for enhancing their power through widening the scope of
negotiation into new issues other than traditional bread and butter
issues (Satrya and Parasuraman, 2007).
Turberville (2007) the article observed that the declining
union density in Australia and Britain was focused attention on the need
for union reorganization. Simon article examines how the development
of closed shops in the two countries Australia and Britain, influenced
member exit rates and the internal union relations now affecting union
renewal. Findings of Simon’s study show that legislative support for the
Australian closed shop tended to foster more union dependency on
state and employers, union bureaucratization, less active stewards and
more dissatisfied members than in Britain.
The subsequent outlawing of the Australian closed shop and
increasing employer hostility resulted in higher levels of density decline
than in Britain. While the greater resilience of British density supports
the case for developing strong workplace unionism, the relative
bureaucratization of Australian unions within an increasingly
antagonistic context, against the British situation of relatively indifferent
employers and steward independence, limits the transferability of
strategies designed to achieve union renewal.
95
Andersen (2006), the article pointed out that in spite of
economic globalization, the liberalization of European markets and rapid
technological changes, membership density in the trade unions in the
metal sector in the Nordic countries remains exceptionally high
compared to any other European region. The coverage of collective
agreements has also remained intact, and unemployment is low by
European standards. Nevertheless, the Nordic metal unions face a
number of dilemmas.
The Nordic metal unions all recognize a need to engage more
actively in international, and especially European-level, policy-making,
including the coordination of bargaining processes. Even then the
Nordic metal unions fear that European regulation may undermine their
national bargaining autonomy. They also recognize the need for a
common Nordic position with regard to European policies; but
differences in industrial structures and traditions of labour market
regulation, alongside different national relationships to the European
Union and Economic and Monetary Union, represent obstacles to closer
cooperation between the Nordic metal federations. Moreover, a lasting
problem is the winning of the support of their members for European and
global activities.
The purpose of Redman and Snape’s (2006), study is to
analyze the evidence for trade union renewal in the UK fire service. Its
96
aim is to consider two main questions: “How have union-management
relations and the industrial relations climate been affected by
management reforms?” and “To the extent that there is worsening in the
industrial relation climate, as this had an effect on union leadership style
and also on union commitment and participation amongst ordinary
members?” The study draws on interviews with managers and union
representatives and a survey of firefighters in the north of England. The
research finds that a marked deterioration in the industrial relations
climate led to changes in union leadership and to an increase in union
commitment and participation amongst ordinary members. The poor
climate created the conditions for union renewal by bringing forward
union activists with more inclusive styles and by raising membership
awareness of the need to dynamically defend their existing terms and
conditions.
Moorthy (2005), the article attempted to find out the changes
that have occurred in industrial relations scenario in textile industry in
Tamil Nadu after the economic reforms introduced during the nineties.
The major findings of the study are that both the number of disputes
and the number of workers involved in the disputes have come down
progressively in the post reforms period in Tamil Nadu. At the same
time the man lose earning days due to strikes and lockouts which
shows an increasing trend in the same period. With the measures taken
by Government and labour department, the workload of intercession
97
machinery has decreased and this efficiency of conciliation machinery is
reflected in discharging its function. The study concludes that economic
reforms have affected industrial relations in textile industry in Tamil
Nadu as there is a declining tendency in industrial disputes. This
existing environment of labour unrest could be endorsed to total
violation of certain norms of discipline by a section of trade unions and
also by employers.
Visser (2005), made a study to despite surface stability, there
are significant changes in the modes of governance regulating the
relationship between law and collective bargaining as a source of labour
rights, and between norms defined at European Union, national,
sectoral and company level. Visser’s study concentrate on the European
integration process as a key source of change, first outlining the
weaknesses of informal coordination of wage bargaining within and
across countries, then discussing the tensions for trade unions created
by Economic and Monetary Union. The study concludes by examining
the diffusion of ‘opening clauses’ in sectoral agreements, the
displacement of collective by individual rights promoted by EU law and
the reduction in statutory standards of welfare and social rights.
Mathur (2005), suggests an increased incidence of union
avoidance policies by employers. Hiers and Kuruvilla (2002), in a wide
ranging survey of Indian industry in 1997, provide numerous examples
98
of the movements towards numerical flexibility and a clear increase in
green-field nonunion plants. On the whole, “the evidence clearly
suggests a shift from “maintaining labour peace” as a key underlying
imperative of the industrial relations system, and towards “the
enhancement of firm-level competitiveness through increases in
numerical flexibility” as India becomes more integrated into the world
economy.
Schroeder’s (2004), article used the concept of ‘designing
institutions’ and a heuristic model of strategic options to address two
questions. First, what institutional changes support a social Europe?
This question is examined on the basis of recent developments in the
European Union regarding macro-economic dialogue and the unions’
own policies of European coordination. Second, what is the influence of
these changes on national trade unions? The conclusion is that
institutional changes are limited, and strong national unions remain the
central agents of transnational coordination. The European Trade Union
Confederation and the European Industry Federations administer the
new coordination procedures, but their status is not enhanced
structurally.
Although employers clearly need to consider labour relations
from strategic perspective, union representatives must do so even more
99
if they are to keep their unions viable for tomorrow’s organizations
(Mello, 2003).
Deery (2002), research study pointed out that North America
employee can be committed simultaneously to both their union and their
company. Moreover, a co-operative industrial relations climate has been
seen to be conducive to the existence of higher levels of commitment to
both organizations. This study utilized a sample of white-collar unionists
in Australia to identify whether union and company commitment could
be predicted by the same factors and whether positive perceptions of
the industrial relations climate were related to dual commitment. The
research found no evidence of dual commitment.
Furthermore, company and union commitment were predicted
by different factors, and employee perceptions of a co-operative
industrial relations climate were associated with higher employee
commitment to the company but lower commitment to the union.
Dhal, Kailash and Srivastava (2002), the study, of Dhal,
Kailash and Srivastava based on a questionnaire survey in South
Eastern Railway, Kharagpur, observed the perceptions and attitudes of
actors of the industrial relation system. Workers were found to be
satisfied with the approach of the management but not with union
leaders. Managers were also trying to adopt people building strategies
and gain the assurance of workers through establishing direct channels
100
of communication with them and bypassing the union. Dhal, Kailash
and Srivastava considered union leaders as obstacles, not willing to
maintain good relationships. Union leaders succumbed to pressure due
to the loss of membership and lack of participation of workers in union
activities.
Dhal, Kailash and Srivastava were satisfied with the prevailing
union-management relationships but considered management as an
opposing force, as they were working towards decreasing the
membership, and creating multiplicity for their own interests. Thus,
union leaders had to bear the responsibility to increase membership,
work for the success of the union as well as maintain a favourable
union-management relationship. Implications of the findings for the
management and union leaders are briefly discussed.
Union density was about 38% in the formal sector workers. As
can be ascertained from above, the unions had an influential voice due
to their links with political parties, in fact all political parties had their
union wings. Unions were mostly structured on enterprise, industrial,
political or regional lines. Bargaining structure during this period was
industrial or enterprise based, although there was provision in the laws
for tripartite structures and works council type institutions but these
were not followed in practice (Kuruvilla 2002).
101
Since 1991 and the liberalization of the economy, Kuruvilla
and Erickson et al. (2002) observe a transitions in Indian industrial
relations. The absence of sole bargaining agent legislation in India had
created, particularly in the period leading up to the early 1990s, a
multiplicity of unions at each workplace.
Black and Lynch et al. (2001) have also argued that the
productivity effect of unionization varies according to how other human
resource management factors such as decision making and
compensation are combined.
Bhattacherjee (1999), examined the role of organized labour
in India in a structural and historical context. It attempts to trace the
economic, political and social effects of the trade union movement and
its strategies over time. These effects are felt at enterprise- and/or firm-
level, industry-level, regional and national level. First the researcher
believe the effect of changing economic conditions on the evolution of
trade unions and bargaining institutions in largely urban labour markets
in the post-independence period (1947 onwards). Some contemporary
issues affecting the organized labour movement in India today are then
discussed. The study has two main objectives: a) to present a history of
Indian industrial relations, broadly understood as the changing
relationships between workers, trade unions, employers, the economy
and the state; and b) to posit a political economy of trade unionism in
102
India. The contrasting view of Freeman and Medoff (1984) of trade
unions as "monopoly" institutions, or as the "collective voice" of workers
serves as a theoretical framework here. From a policy perspective in
democratic and pluralistic societies, the objective must be to minimize
the "monopoly" effects and to strengthen the "collective voice" effects.
Since economic liberalization, every state government in India
has attempted to attract national and international capital, even hired
international consultants to draw up economic renewal agendas. A vital
consideration in this “post-liberalization disclosure” has been the
question of work ethic and comparative union militancy. Although the
data are not exhaustive the more industrial Indian states of Maharashtra
(in which Mumbai is located) and Tamil Nadu (in which Chennai is
located) have a higher number of registered unions and larger
membership according to the ILO (Bhattacherjee et al. 1999).
The fundamental shift in the relationship between employers
and the trade unions, following the gradual realization that the interests
of all are best served through harmonious rather than adverse
employee relations (Pettinger, 1999).
Gawhane (1998), has studied in his research article that the
organization structure of unions, unions’ activities, collective bargaining,
wage agreement related to productivity and quality circle. He has
103
suggested that the size and structure of unions should be minimized to
reduce the unproductive man-days.
Verma (1998), in his doctoral thesis has highlighted the
satisfaction of workers. The results of the study reveal that 36 percent of
the workers are satisfied with the working conditions. Workload is
considered adequate by a majority of workers. Majority of the workers
are satisfied with the working of trade unions and felt the importance of
collective bargaining in solving industrial disputes.
Sinha (1998), done a study related to the working of trade
unions in coal mining of Bihar. According to his study, most of the small
and independent trade unions of coal mining of Bihar are not affiliated to
any National Level Union. The study had also pointed out that there was
inter-union rivalry which caused violence and disorder in the coal fields.
According to the ILO World Labour Report 1997-98, union
membership as a percentage of nonagricultural labour in India dropped
from 6.6 percent in 1985 to 5.5 percent in 1995. The corresponding
figure in 1995 for Argentina was 23.4 percent, Brazil 32.1 percent and
Mexico 31 percent. Union membership as a percentage of formal sector
works in India declined from 26.5 percent to 22.8 percent between 1985
and 1995 (the corresponding figures in 195 were Argentina 65.6
percent, Brazil 66 percent, Mexico 72.9 percent).
104
According to Chatterjee’s, book, it is the wide-ranging work
which deals with personnel management and industrial relation. It is a
deep study of practices of personnel management in Indian context,
from recruitment to retirement. It also covers the entire gamut of trade
unionism, trends of industrial conflicts, legal processes for resolving
disputes etc.
From the author Sumathi’s (1995), pointed out in her research
article that the existing industrial relations in the study unit and
suggested for better industrial relations by highlighting the wages and
welfare measures, machinery for settlement of disputes, role of trade
unions, process of accident and safety measures provided by Dalmia
Cement (Bharat) Ltd.
In their conceptualization, the collective bargaining system
would need to be modified to allow for this larger role to be played by
unions. Another variant finds unions becoming so involved with
management that a system of joint governance develops, removing the
need for collective bargaining (Verma and Gershenfeld, 1993).
The Bluestones see unions emerging as full partners with
management, eventually becoming involved in all aspects of strategic
business decisions (Bluestone & Bluestone, 1992).
105
Joseph (1990), has observed that works committee can be
formed and suggestions scheme should be introduced. Trade union
leaders should co-operate among themselves. Canteen committee
should be reviewed. Production committee can be formed. The
management can hold joint meetings with the staff and union officials in
resolving various issues. Some financial incentives can be given to the
outstanding workers who show loyalty, sincerity and regularity in their
work.
Punekar et al. (1990), has stated the purpose of trade union,
that through their collective action, workers ask for more wages, less
hours of work, reasonable amenities and humane treatment.
Alexander (1990), carried out a study on and has observed
that industrial relations are achieved by avoiding or preventing industrial
disputes. The employer should provide various facilities to the
employees. The worker’s union should recognize that political party
should not interfere in the industrial relation matter.
Unions competed with each other for membership in a given
workplace, resulting in highly conflictual industrial relations, as the
conditions for a stable partnership between employers and unions did
not exist (Ramaswamy 1985; Ratnam 1996). But industrial relations
legislations reform is now on the agenda, given the pressure from both
employers and the World Bank to allow an “exit policy”. Employer
106
practices clearly show more aggression than previously; the number of
lockouts has increased dramatically, even as strikes have declined
(Ratnam 1996).
The traditional link between unions and political parties (each
major political party has its trade union arm) provided the labour
movement with considerable voice despite their low density figures but
the government appears to be siding more with business more recently,
particularly in important export areas like IT, bio-tech and ready-made
garments.
Bhattacherjee (1987), estimated the bargaining effects of
union-types on pay and fringe benefits for blue-collar workers, using
119 recently negotiated plant level contracts from the advanced
manufacturing sector in Western India. The sample is divided into
'external' unions, i.e., those that are affiliated to a trade union
federation, and 'internal' unions that are plant based and independent of
any organization. Results indicate that the independent internal unions
secure higher wages and fringe benefits.
Kujawa (1983), has conducted eight case studies of U.S.
manufacturing subsidiaries of Japanese multinationals and analyzed in
terms of variations in competitive strategies and industrial relations
practices. Based on data collected in 1980 during on-site visits, each
firm is reviewed in light of the technology contributions coming from the
107
Japanese parent and is categorized as having product-, process-,
and/or management-centered technology strategies. The industrial
relations practices are also grouped according to similarities surveyed.
These groupings were then compared and contrasted. The findings
were consistent with hypotheses that firms with management-centered
strategies are more likely not to be unionized and to oppose
unionization, to prefer a less stratified work force in terms of number of
job classifications and specifically identified job assignments, to
maintain flexibility in work-force management, to conduct considerable
cross-training and to strive to avoid layoffs of production personnel.
Conversely, the groupings indicated little relationship, if any, between
technology strategy and compensation levels.
The findings are interpreted in light of product-life-cycle and
risk-aversion models of firm behavior. The question of whether
technology strategy is a reasonably good predictor of industrial relations
practices is also addressed.
Rao (1982), has probed into the reasons for labour
management conflict in Andhra Pradesh State Electricity Board. He has
found out that the main reasons for conflicts between labour and
management was due to lack of appropriate organizational structure,
lack of understanding of workers’ problem on the part of management
108
and unfavourable attitudes of trade union leaders towards the industrial
relations.
Ramaswamy (1985), has carried out a sample survey among
public sector undertaking with 130 managers to identify the causes of
dissatisfaction, revealed that there were widespread grouses about pay
and perquisites, particularly at the large increase in workers’ pay
packets which had reduced differences. But the main reason was
widening differences between managers and bureaucrats, which helped
to create the alienation. Other causes included the loss of job
satisfaction.
Nicholson (1979), has found in the case study approach on
the industrial relations climate of a steelworks was investigated through
a structured interviews with shop stewards and managers at all levels.
Interviewees were asked how often they have handled different types of
industrial relations issues, how often they have interacted with their
opposite numbers at different levels to solve those problems, how
satisfied they are with the way each of the problems were handled and,
how satisfied they are with their opposite numbers' handling of industrial
relations problems generally.
Results show that there was union-management agreement
about the nature of the local climate, but that the climate differed across
departments in accordance with data from independent sources. The
109
findings also pointed out that in this plant the climate was more ‘issue-
centered’ than ‘person-centered’. It has concluded that the technique
could be similarly useful in other settings for the speedy appraisal of
industrial relations at plant level, but that more comparative research on
industrial relations climate was needed.
Gupta (1973), made a study on the role of trade unions in the
regulation of wages of colliery workers. He has recommended that
organized labour movement alone can bring wage parity among the
workers of coal mines.
Sivayya (1971), in his article stated that if the employees are
satisfied with the employment and working conditions, social security
and welfare measures, that attitude of the management towards their
unions, and the methods adopted to settle disputes that may arise from
time to time, there exist good industrial relations.
Subramanian (1967), has pointed out specifically, the report
given by Royal Commission on Labour in India that, ‘recognition of trade
union should mean that the employers recognizes the right of the union
to negotiate with him in respect of matters affecting either the common
or the individual interests of its members’.
Vaid (1965), felt that, ‘the politics of unions and of employers
which influence the enterprise level decisions was responsible for a big
110
percentage of disputes due to “other” causes. Recognition of unions
may very often mean opening the plant gates to politicians who belong
to an opposite camp. The employers’ politics does not permit them to
oblige the unions in this regard and so the tug of war continues’.
The growth and character of trade unionism in a country is
conditioned by a set of economic and social factors. Trade union
movement in India is best with many obstacles. Most of the Indian
Trade union leaders fare “outsiders” i.e., they are educated middle class
individuals, who come into the union from outside, rather than through
the wage earnings ranks. (Kennedy 1956).
Webb defined a Trade Union as “a continuous association of
wage earners for the purpose of maintaining or improving the conditions
of their working lives” (Webb and Webb 1950).
2.5 GRIEVANCE MECHANISM
In the world of work a grievance is a formal statement of
complaint or suggestion, generally against an authority figure.
Procedures for are common in unionized organizations (Ratna 2009).
Jucius (2009), has defines a grievance as ‘any discontent or
dissatisfaction, whether expressed or not and whether valid or not,
arising out of anything connected with the company that an employee
thinks, believes, or even feels is unfair, unjust, or inequitable’.
111
“Grievance Redressal and Procedure, Study on Reforms and
Restructuring of Meghalaya State Power Sector” A grievance can be
defined as any sort of dissatisfaction, which needs to be redressed in
order to bring about the smooth functioning of the individual in the
organization.
Discontent or dissatisfaction is not a grievance. The
employees initially find expression in the form of a complaint. When a
complaint remains unattended to and the employee concerned feels a
sense of lack of justice and fair play, the dissatisfaction grows and
assumes the status of grievance.
State Bank of India Vs. All Orissa State Bank Officers
Associations (2003), the Supreme Court held that there is no common
law right of a trade union to represent its members, whether for purpose
of collective bargaining or individual grievances of members. On
general principles of equity, justice and fair play, it was held that
minority groups and individuals should also be afforded an opportunity
of ventilating their grievances in a given situation and merely because
the majority union is representing a claim on the rights of other minority
and individuals cannot be left out.
International Labour Organization, usually grievance related to
non-fulfillment of one’s expectation from the organization. Dissatisfied
employees usually manifest defiant behavior. This idea of a grievance is
112
also in tune with the definition set out in the ILO Examination of
Grievances recommendations, stating;
“The grounds for grievances may be any measure or situation
which concerns the relations between the employer and worker or
which affects or may affect the conditions of employment of one or
several workers in the undertaking when that measure or situation
appears contrary to provisions of an applicable collective agreement or
of an individual of employment, to work rules, to laws or regulations or
to the custom or usage of the occupation, branch of economic activity or
country, regard being had to the principles of good faith”.
In 1998, the Indian Government ratified Convention 122 of the
International Labour Organization. Article 1 of the Convention it can be
deducted that the workers possess right to get redressal for their
grievances and redresal forum should be performed by the Government
of India.
Section 2-A, implies that an individual’s grievance not related
to a dismissal or discharge will not constitute an industrial dispute. For
example, a worker’s grievance that his seniority was overlooked when a
promotion decision was made will not constitute an industrial dispute,
but may be redressed through a grievance redressal procedure existing
in the establishment.
113
According to Srivastava (1992), opinion Effective employee
relations in any business unit achieved through rewards and
recognition, transparent communication system, proper attention
towards employee grievances.
Durai (1997), has conducted a research with the purpose to find
out the existing state of labour management relations in the study units
and to make a comparative study of labour management relations and
organizational climate of different firms. The result of the study shows
that the significant organizational climate variables which cause
maximum variation in Labour management relation are welfare facilities,
monetary benefits and grievance handling. The non-significant
variables are namely, safety and security, objectivity and rationality,
participative management, recognition and appreciation.
The study suggested that the management must revise the
wages of the workers from time to time to enable them to cope with the
inflationary conditions. The management must provide fair wages, relief
and rewards to workers on time. The management should give more
attention towards welfare facilities in the form of subsidized housing,
canteen, transport, education and healthcare assistance. The concept
of personnel audit is to be strictly enforced to ensure the effective
implementation of human resource policies and programmes. The
management should promote effective grievance handling mechanism
114
for fair and prompt resolution of grievances and the industrial relations
departments should be set up in every unit exclusively to deal with the
matters relating to labour management relations in the organization.
In due course of time, the number of unions has diminished.
The adversarial bargaining trend of the unions towards management
has changed in India. The labour union started to work co-operatively
on issues such as plant designs and locations. (Adler 1993).
The labour unions also participated in team-oriented pay plans
(Miller and Schuster 1987); recruitment and selection procedures
(Collins, Hatcher, and Ross 1993), and quality improvement
(Bognanno and Kleiner 1992). Research in the United Kingdom found
that innovative human relation working practices are more likely to be
adopted in unionized plants (Sisson 1993).
Sinha (1987), describes, the establishment of Works
Committees, the encouragement of workers organizations and the
settlement of the problem of bonus by constituting a Bonus Commission
were the other features of this plan document.
Lansing and Kuruvilla (1986), views that including selective
individual disputes as industrial disputes protects the
individual worker from being victimized and losing his source of
115
livelihood in the process, especially where he was not a member of the
union.
Freeman and Medoff (1984) argued that in unionized settings,
employees will more often voice their common views or grievances
whereas in non-union settings, employees are more likely to exit in
difficult situations. The presence of a union has linked to wages,
working conditions and safety.
Givry and Schregle (1968), broadly said that a grievance can be
defined as any discontent or dissatisfaction with any aspect of the
organization. It can be real or imaginary, legitimate or ridiculous, rated
or unvoiced, written or oral; it must be however, find expression in some
form or the other.
Hindustan Antibiotics Vs. Its Workmen (1967), analyzed,
industrial relations no longer remains the concern of labour and
management alone with the emergence of the concept of welfare state,
new ideas of social philosophy, national economy and social justice.
Workmen of Dimakachi Tea Estate Vs. Dimakachi Tea
Estate (1958), predicts that the concern of state in matters relating to
labour is a product of its obligations to protect the interest of industrial
community, while at the same time fostering economic growth in almost
all countries.
116
SUMMARY
It is clear from the above concepts that, the employees
constitute the most valuable asset of any organization and consequently
any neglect of this important source is liable to result in an increased
cost of production, in terms of wages and salaries, benefits and
services, working conditions, increased labour turnover, absenteeism,
indiscipline on the ground of discontent and the like besides
deterioration of quality of goods and strained relationships between the
employees and management. Maintenance of good human relationship
is the main theme of industrial relations because in its absence the
whole edifice of organizational structure may crumble down. No industry
can survive if it does not create a congenial industrial relationship with
its employees. A sound financial position is needed for the industrial
growth and expansion, but more than that a good industrial relation
would certainly promote good understanding leading to further
development and consolidation. With the background of these studies
the next chapter proceeds to design the research methodology of this
research work.
117
CHAPTER III
NEED FOR THE STUDY & COMPANY PROFILE
A study of Industrial relations is significant in the sense that
without smooth, cordial, peaceful and harmonious labour management
relations an organization, cannot function effectively and cannot
contribute its mite to the welfare of its workers and the progress of the
nation.
A good industrial climate is essential for the expansion of
industry. It has been increasingly realized that the industrial system has
brought about numerous complexities. Higher living standards
encourage demand for luxuries and services. So it is obvious that the
technological advances eliminate long established jobs and create
opportunities that require sharply different patterns of experience and
education. All these changes have made the present system of
employment relationship very complex. Under these circumstances
understanding of human behaviour and psychology is essential on the
part of those responsible for managing man power resources.
118
3.1 STATEMENT OF THE PROBLEM
India is the world’s largest producer of sugar cane and
occupies a very proud place in the world and bringing out socio-
economic changes in under developed rural areas (World Sugar News,
2010). Sugar industry covers around 7.5% of the total rural population
and provides employment to 5 lakhs rural people. About 4.5 crore
farmers are engaged in sugarcane cultivation in India. Sugar mills have
been instrumental in initiating a number of entrepreneurial activities in
rural India (Pandey, 2007).
Tamilnadu is one of the leading producers of sugar in the
country and its contribution is about 7% of country’s total sugar
production. According to Sugar India Year Book 2012, there are 46
sugar mills in Tamilnadu of which 16 sugar mills are in cooperative
sector, 3 in public sector and 27 in private sector. It is a major industry,
which plays a vital role in the development of a network of good roads
and infrastructure in the rural areas. A large part of the rural population
is involved in the functioning of sugar mills. They usher in radical
changes by providing facilities like agriculture, extension of irrigation,
education, health, dairy and poultry. The result is a socio-economic
transformation of the rural India. They harness and reinforce the
capacities and energies of men and women human resource in a
meaningful and fruitful way.
119
Even though higher growth in the sugar industry, still some
problems and challenges are there in the progress. The reasons may
be like; lower sugarcane yield, sugar recovery, and financial stringency,
steadily declining profitability, lack of integration between farmers and
sugar mills, ever increasing production costs and mounting losses, lack
of good relationship between workers and management and job security
pulls down the progress of Indian sugar industry. Even though, Private
sector sugar mills are more in numbers compared to cooperative and
public sector sugar mills it is not in the position to perform well. In order
to enhance production and productivity it needs quality management at
all levels of activity, professionally competent as well as co-operative
oriented human resource. Nevertheless, very few attempts have been
made to improve the competent human resource by enhancing
adequate labour welfare measures through which industrial relations
can be build at the state level. In this context, the present study
pertaining to the impact of labour welfare measures on industrial
relations in the private sector sugar mills at Tamilnadu has been
planned. The researcher has attempted to analyze how the quality of
good industrial relations can be increased by providing better labour
welfare measures to the employees in the selected sample unit of the
private sector sugar mills functioning in Tamilnadu.
120
3.2 A Picture of Perambalur District
Tamil Nadu State was born on 1st November 1956. It is situated
at south east extreme of the Indian Peninsula, bounded on the north by
Karnataka and Andhra Pradesh, on the east by the Bay of Bengal, on
the south by the Indian Ocean and the west by Kerala. It spreads over
an area of about 1.3 Lakh square kilometers. As on 31st December
2010 the state has been divided into 33 Revenue Districts, 215
Revenue Taluks, 1,120 Revenue Firkas and 15,979 Revenue Villages.
As per December 2010 Statistics the total geographical area is 130.123
lakh hectares. The total cultivated area is 72.372 lakh hectares of which
sugarcane is cultivated in 2.21 lakh hectares. There are 46 sugar
factories in Tamilnadu to cater to the needs of the total population of
74,319,357 consisting of 37252810 males and 3,70,66,546 of females.
Perambalur is situated on National Highway 45 that runs from
Chennai to Theni. Geographically it is almost at the center of
Tamilnadu. The area of Perambalur District is 3829.75 square
kilometers extending from the extreme end of Cuddalore and Salem
District in the north, Trichirappalli and Thanjavur in the south,
Trichirappalli and Namakkal in the west, cuddalore in the east. The
overall population of Perambalur District is 4,93,646 out of which
2,46,141 are males and 2,47,505 females. Perambalur Parliamentary
Constituency consists of Perambalur, Kunnam, Ariyalur, Andimadam,
121
Jeyankondam and Uppiliyapuram assembly constituencies. It is a
reserved and economically backward constituency.
Though the area is generally hilly and backward, there are
remarkably fertile regions one of which is located in Ladapuram called
Peacock Falls. The Perambalur area is very famous for a few shrines,
one being the Madhura Kali Amman temple situated in Srivuvachur on
N.H.45, about 6 kilometers from Perambalur Head Quarters. It is
historically important. It is given to understand that the Saint Adhi
Sankarar stayed and worshipped here. It is very popular and very much
frequented by people from various parts of Tamil Nadu. There are also
other remarkable places in this district. The Murugan Temple in
Chettikulam, Valieesvarar Temple in Valikandapuram, Varatharaja
Perumal Koil in Kallangurichi, the MadhanaGopala Swamy temple
situated in the city of Perambalur is popularly known. People belive that
Pancha Pandavas stayed and worshipped in this temple. The kutram
Poruthavar Alayam in Adudurai, too is one of the important temples.
The Ranjan Kottai Fort located by N.H.45 near Valikandapuram is
another historically important site in this area. It attracts the attention of
the tourists particularly school children. One more important site is the
Adaikkala Madha Church in Elakkurichy near Tirumanur it was built by
Constantine Joseph Beschi an Italian Jesuit Missionary popularly knows
as Veerama Munivar. One more popular and historically important
temple is the great temple of Siva at Gangai Konda Cholapuram about
122
60 Kilometers from Perambalur on the Kumbakonam – Chidambaram
main road. Another important factor is the reminiscence of the victory
achieved by RajendraChola son of Raja Raja Chola against northern
kings. There is a Bird Sanctuary in Karavetti, Kunnam Taluk maintained
by the Archiological Department of the Government of India. It is about
40 feet high. These are some of the important places catching the
attention of the people of this part of Tamilnadu. The sole sugar factory
is situated in Eraiyur near Chinnaru dam on NH 45 near Thozhuthur, 20
kilometers from the headquarters of Perambalur District. it is named
Perambalur Sugar Mills Limited, Eraiyur , Perambalur. Sugar cane is
cultivated in about 14500 hectares of land. The yield of the crop of
sugarcane in this area is much more than the required quantity. Hence
the surplus cane is sent to other mills in the other districts.
3.3 M/s Perambalur Sugar Mills Ltd
Location
Perambalur Sugar Mills Limited is a subsidiary unit of TamilNadu
Sugar Corporation Limited. It is situated in Eraiyur Village, about 20km
from Perambalur on Trichy – Chennai National Highways, the mill
sprawls over an area of 133 acres of land. This is an agro-based
industry, sugarcane being the raw material. Crushing operation will be
going on for about 6 months every year and the remaining period will be
utilized for overhauling of the machinery. The factory had its maiden
123
crushing during 1977-78 season with an installed capacity of 1,250 tons
of cane per day.
TABLE 3.1 AREA OF OPERATION
TALUK DISTRICT
1. Perambalur Perambalur
2.Veppanthattai Perambalur
3. Kunnam Perambalur
4.Ariyalur Ariyalur
5.Senthurai Ariyalur
Expansion
The installed capacity of the mill was increased during 1989-90
from 1,250 TCD to 3000 TCD and crushing at increased capacity
started on 6.11.1990. The loans received from financial institutions for
expansion have been fully repaid.
Management
The mill is administered by the Board of Directors . The
organisational chart is given in the next page.
124
ORGANISATION CHART
Chief
Cane Engineering Manufacturing Accounts
Chief Cane Officer
Cane Dev. Officer
Cane Officer
Suprvisor
Supdt. Supervisor
Cane Dev Assistant
Clerical & Other
Staff
Clerk & Field Staff
Chief Eng.
Deputy Eng.
A.E (Mech)/ (Ele)
Mech
Ele.Sup
Draughtsman
Operatives
Chief Chemist
Operatives
Mfg. Supervisor
Lab - Chemist
Lab – In Charges
Mfg. Chemist
Dy. Chief Chemist
Chief Accountant
Account Officer
Accounts
Asst Acct.
Cashier & Clerks
Clerical staff
Personal & General Administration
Medical Officer Senior Manager
Pharma / Sanitory
Medical Order Line
Token Attdt
Shift Time keeper
Head Time Keeper
Lab Welfare Officer
Mesgrs/ Drivers
Clerk & Attenders
Supdt./ St.Keeper
Admin Officer
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3.4 Sugar Policy
Sugar Season
One sugar season is 12 months from October to September. The
actual crushing will depend upon the availability of sugarcane, which will
normally be for about 6 months in a year.
Cane Price
Statutory Minimum Price
The Government of India fixed the statutory minimum cane price
under the Sugarcane Control order 1966. This price has to be paid by
the sugar mill within 14 days from the date of supply of cane failing
which interest at the rate of 15% will have to be paid to the cane
growers. The statutory minimum cane price is fixed by the Government
of India for the recovery of 8.50%. The cane price is fixed for a sugar
mill based on the Peak period recovery of the mill. The peak period
recovery refers to the average recovery obtained from 1st December to
31st March of the preceding season. The statutory minimum price for
2010-2011 for Perambalur Sugar Mils was Rs.1017.60 per ton.
State advised price
Every year the state Government announces the statutory
minimum price over and above the price fixed by the government of
India and this price is known as State Advised Price. The state advised
price for 2010-11 for this mill was Rs.1537.40 linked to 8.5% recovery.
The cane price paid by the mills since 2001-2002 is furnished below:
126
TABLE 3.2 CANE PRICE PAID DETAILS FROM 2001-02 O 2010-11
Crushing
season
G.O.I Minimum Cane
Price for P.S.M
Cane price paid as
Under Bargova
formula
Total Price
paid by P.S.M
2001-2002 737.30 183.10 920.40
2002-2003 793.40 163.10 956.50
2003-2004 826.00 160.00 986.00
2004-2005 850.60 189.40 1040.00
2005-2006 891.00 219.80 1110.80
2006-2007 802.50 240.50 1043.00
2007-2008 811.80 213.20 1025.00
2008-2009 811.80 431.00 1100.00
2009-2010 1017.60 783.80 1537.00
2010-2011 1264.40 735.90 2000.30
Source: Secondary data
Government of India’s final cane price and additional cane price as
per Bhargava formula
Initially the Government of India fixed the statutory minimum price
for sugarcane for a particular season based on peak period recovery of
the previous season. At the end of every season the final cane price
payable to the cane growers is being computed under Clause 5A of the
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Sugarcane control order, 1966,. For working out this final price, the
Government of India announces the Zone wise cost of production ‘L’
factor. The sales realization of sugar out of a particular season’s sugar
is matched with the cost of production and the surplus is being shared
between the sugar producers and growers @ 50:50. While announcing
the final cane price, the statutory minimum price initially paid is
deducted.
Incentive cane price
The Co-operative and Public Sector Sugar Mills in TamilNadu
have adopted the practice of declaring an incentive cane price for the
cane drawn in a particular season to enthuse the growers to bring in
more area under cane cultivation. While declaring such incentive cane
price, the mill usually deducts a portion of the price towards the area
development fund. The corpus of the fund is usually utilized for socially
relevant schemes in the command area of the mills.
The sugar industry in Tamilnadu is presently paying the following
taxes, duties, etc. periodically to the state / Central Government.
128
3.5 Taxes
Purchase Tax
The purchase tax is payable to the Government of Tamil Nadu at
the last point of purchase of sugarcane. It was 8% on cane value. But it
has been revised as a fixed rate of Rs.60%- per MT From 01-04-1997.
The entire purchase tax is being borne by the sugar industry and is
being absorbed in the cost of production.
Sales Tax
The sugar industry is presently paying sales Tax on sale of
Molasses, Bagasse, Press and Scrap. There is no sales tax on the sale
of bagasse to Paper mills. The sales tax is collected form the
purchasers of these by – products, scrap etc. There is no financial
commitment for the sugar mills under this head.
Sugar Cane Cess
The sugarcane cess is payable by the sugar industry at Rs.15/-
per M.T, to The state Government for the Cane purchased by a sugar
Mill from beyond the local panchayat area. The sugar Mill absorbs this
in its cost of production this. The Government of Tamil Nadu is utilizing
this cess for implementing sugarcane Road Development Scheme. A
separate Department for Sugarcane Cess Road Development is
functioning in the State with a Superintendent Engineer at the helm of
affairs.
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Excise Duty
The Government of India is maintaining the Sugar Cess collected
from the Sugar Industry and the corpus of this fund is being utilized
presently for the following Objectives:
Sanction of loan for Cane Development Activates
Sanction of loan to bridge the gap in the promoter’s contribution
for modernization/rehabilitation.
For making grants for the purpose of any research projects aimed
at developing the sugar industry.
For subsidizing the holding charges on Buffer Stock..
As in the case of Sales Tax, the incidence of Excise Duty and Sugar
Cess is being transferred to the purchasers and hence there is no
financial commitment to the mills.
Sale of Sugar
As per the existing sugar Policy (Dual Control) every sugar
producer shall sell 40% of their production as Levy Sugar to the public
distribution system through the Civil Supplies Corporation / Food
corporation of India and the balance 60% shall be put on the open
market. Under the sugar control order, 1966 the sale and dispatch of
sugar (both levy and free) is regulated by the monthly release orders
issued by the Directorate of Sugar, Government of India. The quantity
released for a month under free sale should be sold before the end of
that month.
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Price of Levy Sugar
The price of levy sugar called the ‘Notified Price’ for a particular
season is fixed by the Government of India. The levy sugar price for the
2010-2011 sugar seasons for Tamilnadu zone was up to Rs.4987.63
per Qtl. This price was paid for the sugar dispatched / delivered at
factory gate. While fixing the levy price, the Government of India takes
into account the following factors.
At the minimum price, if any, fixed for sugarcane by the
Central Government
The manufacturing cost of sugar
The duty or tax, if any paid or payable thereon.
A reasonable return on the capital employed in the business of
manufacturing sugar.
Free Sale Sugar
The price of free sale sugar depends upon the supply and
demand position of the market, its price in the neighboring states and
the transport charges involved for the purchase of sugar from the
neighboring states. Tender organized by Tamil Nadu Co-op. Sugar
Federation affects the sale of free sale entitlement. All the Mills receive
consideration for the levy and free sale sugar in advance.
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3.6 By – Products
Bagasse
The production of bagasse will be normally around 30% of the
cane crushed. About 80% of the bagasse will be utilized as fuel in the
mills boilers for production of steam, which is utilized for generation of
electricity. The remaining quantity of bagasse is sold to TamilNadu
Newsprints & Papers Limited.
Press Mud
The production of press mud will be around 30% of the cane
crushed. The entire press mud is being given to cane growers @
Rs.80/- up to date Per tonne.
Molasses
The production of Molasses will be around 4.25% of the cane
crushed. The possession and sale of molasses was completely
controlled prior to 10.06.1993. The government of India rescinded the
Molasses control order on 10.06.1993 and consequently the State
Government has also decontrolled sale of molasses. After the decontrol
molasses is being sold to distilleries, cattle feed manufactures etc. on
the open market.
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3.7 Divisional Offices
There are divisional offices at the following ten places.
1. Eraiyur
2. V.Kalathur
3. Labbaikudikadu
4. Agaramseegur
5. Puduvettakudi
6. Thamaraipoondi
7. Perambalur
8. Krishnapuram
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S.N
o
Sea
son
2001
-
201
1
Tot
al C
aneA
rea
Reg
iste
red(
acr
es)
Qty
. of c
ane
crus
hed
(M.T
)
Cap
acity
utili
zatio
n%
Ave
rag
e yi
eld
per
acre
(M
.T)
Pol
in c
ane%
Tot
al lo
ses
Pea
k pe
riod
reco
very
%
1 2001-02
13,800
PSM
OM
1,07,391
2,04,419 49.95 27.40 11.77 2.44 9.97
2 2002-03
21,153
PSM
OM
3,38,392
1,52,000 65.58 26.00 11.39 2.45 9.49
3 2003-04
19,107
PSM
OM
3,28,609
1,28,122 88.50 24.50 10.80 2.04 10.00
4 2004-05
15,506
PSM
OM
3,56,000
96,011 86.76 26.00 11.52 1.77 9.90
5 2005-06
19,536
PSM
OM
3,97,031
36,703 84.55 26.00 11.20 1.82 9.60
6 2006-07 25,720 8,59,633 166.50 36.00 10.12 1.79 9.29
7 2007-08
19,200
PSM
OM
5,83,298
15,221 106.00 32.00 10.13 1.79 9.50
8 2008-09 14,574 3,90,236 75.60 33.00 10.13 1.80 9.70
9 2009-10 15,000 5,30,000 103.00 35.00 10.12 1.80 9.30
10 2010-11 14,500 4,96,603 96.24 32.00 10.92 1.99 9.47
134
3.8 Welfare Measures for the Cane growers
Subsidies
Transport subsidy- up to 10 km only the transport charges are
paid by the growers and the balance transport charges paid by
the mills.
Crop insurance – Crop insurance is providing for all sugar can.
Roads
Road were laid under Sugarcane Road Development Scheme for
a distance of 48.6 km by spending Rs. 182 lakhs to connect the villages
with the main roads to enable the growers to transport the sugarcane to
the mills.
In addition roads for a distance of 46.6 km by spending Rs. 37.70
lakhs have been laid with the area development fund.
Loans
Loans were sanctioned to the cane growers under sugar
development fund for digging and deepening of open wells and bore-
wells, purchase of electric motors. So far a sum of Rs. 254.33 lakhs
received from the Government of India has been granted to 2828 cane
growers. The loan amounts are being recovered from the cane
proceeds. The mill is also arranging loan through Nationalized Banks for
digging of wells, purchase of pump sets, tyre carts etc
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.
Sugar to Cane Grower
Sugar at concessional rate is being distributed to the cane
growers as the rate of ½ kg per tonne of cane supplied to the mills at
levy price, free of seals excise duty.
Diesel Bunk
A Consumer diesel bunk is functioning in the mills premises for
supplying diesel to the vehicles transporting cane to the mills.
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3.9 Description of Sugar Manufacturing
The cane harvested in the fields is to be crushed within 24 hours
and the cane should be matured, clean, pest-free, disease-free, and roots-
free, without any foreign material. The cane brought to the factory is
weighed and stacked on the feeder table by the use of cane unloaders.
Then the cane is fed into the cane carrier and passes through kicker,
leveler, cutter, and fibrizer where the cane is leveled, cut into pieces and
fibrizered. This prepared cane is crushed in 6 Mill Tandem in series. Water
is added from the sixth mill. The crushing is done to recover maximum
quantity of sugar juice and minimum is lost in the bagasse. To avoid loss
due to bacterial effect in the milling, mill cleaning and mill sanitation
chemicals are added. Then the mixed juice collected in the mill house is
pumped to the boiling house.
Phosphoric acid is added to the raw juice to maintain the phosphate
content a 300-ppm level. In the boiling house the mixed juice is first
weighed and heated to 700 to 720 to eliminate the micro organism and for
optimum conditions for chemical reactions, in the juice sulphitation
vessel. The raw juice heated to 70o to 720 C is mixed with milk of lime
and neutralized by SO2 gas. SO2 gas neutralized the excess lime and
removes the coloring matters and improves the boiling characteristics of
massecuites. The chemically treated juice is pumped to the clarifier
through treated juice heaters where the juice is heated to 102o C to
improve the rate of settling. The treated juice is clarified in the clarifier
137
and clear juice is pumped to the evaporator station. A polymer chemical is
added to in the clarifier to improve the rate settling. The muddy juice in
the clarifier is taken into vacuum filter, where the residual juice is filtered
and taken for process. The filter cake obtained in the vacuum filter is
removed and used as manure in the field. The clear juice is pumped to
evaporator station through clear juice heater where the juice is heated to
1100 to 1200 C for improving the evaporation efficiency. The clear juice is
evaporated in the Semi-kestners and evaporators and 75% of water in the
juice is evaporated and syrup at 60 brix obtained. The syrup is pumped
into the syrup sulphitor where it is bleached with SO@ gas and PH is
maintained at 4.9 to 5.1. This sulphured syrup is pumped to pan floor for
pan boiling. There are 3 massecuites boiling systems (ABC massecuites)
‘ A ‘ massecuites is prepared by boiling with B seed, melt, A light
molasses and syrup. The sugar obtained from this massecuites in this
centrifugal station, which is the commercial sugar is sent to sugar
Godown. ‘ A ‘ light and ‘A’ heavy molasses are pumped to pan floor for
processing sugar. ‘B ‘ massecuites is prepared by boiling ‘A’ heavy
molasses with ‘B’ grain. ‘B’ seed is obtained from this; massecuites is
used for A massecuites boiling and excess B seed will be melted and
used for processing. B heavy molasses is pumped to the pan floor. C
mawssecuites is boiled with C light and B heavy molasses with C grain.
The C seed is melted and used for sugar processing. The C light
molasses is pumpted to the pan floor for C massecuites boiling. The final
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molasses obtained from C massecuites curing in continuous centrifugal is
weighed and pumped to the molasses storage tanks.
The bagasse from the mill house is used a s fuel in the boilers and
high pressure stream is generated. There are two boilers of 20 tonnes per
hour capacity with working pressure of 20 kg per/sq.cm. and a boiler of 45
tonnes per hour capacity with working pressure of 32 kg/sq.cm. This
stream is used in the powerhouse to run the power turbines for generating
electricity. There are two 1.5 MW Alternators for producing electricity. The
high-pressure steam from the boilers is used to run the mill turbines. The
exhaust steam from the power turbine and mill turbine is used for the
boiling purpose in the boiling house.
3.10 System of Work
Details of strength of employees as per staffing pattern and existing
strength are given below.
The regular employees work throughout the year while the seasonal
employees will be normally working only during the crushing season i.e. for
about 6 months in a year.
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However, depending upon the necessity sum of seasonal
employees will be recalled during of-season overhauling work. During the
lay-off period the employees are being paid retaining allowances as
detailed below:
Unskilled employees 30%
Semi Skilled Employees 40%
Skilled, Clerical and Supervisory employees 50%
3.11 Welfare Measures for the Employees
Residential Quarters
There are 206 quarters in the mills premises. All officers,
supervisory staff and essential categories of workers and staff have been
provided with residential quarters.
Free Electricity
Electricity is supplied free to the employees staying in the mill
quarters as detailed below.
a. Chief Executives 100 units
b. Chief officer and Deputy officers 75 units
c. Supervisory staff 50 units
d. Others 40 units.
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Bank
A branch of Indian Overseas Bank is functioning in the premises of
the mills for the benefit of employees of the mills and cane growers.
Post Office
A post office is functioning in the Premises of the mill.
Canteen
A canteen is functioning inside the Premises of the mill.
Co-operative Credit Society
An employee’s co-operative credit society is functioning inside mills.
The employees can avail themselves of a loan up to Rs. 80,000/- from the
society.
Consumer Co-operative Stores
An Employee’s Co-operative Society is functioning in the premises
of mills, where the employees of the mills can purchase their requirements
either by paying cash or on credit.
School
The mill runs a Higher Secondary School for the benefit of the
children of the employees, cane growers and general public of the nearby
141
villages. At present about 2,000 students are studying in the school.
There are about 70 on the staff of the school.
Recreation Club
There are four recreation clubs on the mills premises for officers,
staff, workers and ladies.
Dispensary
The mill has a dispensary where treatment is given free of cost to
the employees and their family members. The total cost of medicines
purchases a year is about Rs. 7 lakhs.
Bus Facility for School Children
The mill provides bus facility for the children of the employees and
the cane growers/ shareholders to go to school/ college in Perambalur and
also for bringing the children to the mills school at a nominal charge of Rs.
25/- per month per student.
Supply of Text Books.
The mill supplies textbooks and notebooks free to the children of the
employees.
142
Educational Loan
Interest-free educational loans are given to the employees of the mill
as detailed below. The loan amount is recovered in 10 equal monthly
installments.
Polytechnic and other technical institutions-study Rs. 15000
Arts College study Rs. 20000
Professional College study Rs. 30000
Provision of Dish Antenna
There is a video club on the mills premises through which dish
antenna connections are provided to the quarters.
Uniform
Three sets of teri-cotton uniforms are given to the workers,
employees and officers once in two years. Shoes are being given to
eligible employees once in 2 years and chappals are given to others once
a year.
Free Tea
Tea is supplied at free of cost to all employees of the factory office
and those who work in the cane divisional offices are paid a tea allowance
of Rs. 180 per month.
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Night Shift Allowances
The mill pays night shift allowance to all the workers and staffs who
are attending night shifts @ Rs. 10 per night.
Provision of Rain Coat and Helmet
All the field staff and certain other categories of employees are
provided with raincoat and helmet by the mills as detailed below.
1.Field Staff like cane assistants One raincoat once in 3 years
and 1 helmet once in 5 years.
2. Regular workers in cane yard
Bagasse yard, Security wing,
Molasses Tank, E.T.P.Pump man One raincoat once in 3 years.
(Drinking water Supply)
Provision of Towels and Soaps
The workers working inside the factory are provided with one
Lifebuoy soap every month and handloom towel once in three months.
Education Tour
The employees are permitted to go on an education tour every year
for 3 days, special casual leave without pay cut. 1/6th of the employees
are covered every year.
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Worker’s Education.
Worker’s education class is being conducted for the benefit of 25
workers every year, on cyclical basis.
Advance for Marriage and Fire Accident.
Marriage advance @ Rs. 50,000/- to a female worker or a daughter
of any employee and Rs. 25,000/- for the marriage of a male employee or
a son of any employee is being made. For seasonal employees 50% of
the amount is allowed. An amount of Rs. 5000 is given as a special
advance to the employees whose houses are affected by fire.
Voluntary Health Scheme
A voluntary health scheme has been introduced in the mills, which
provides financial assistance to the employees for treatment of certain
diseases such a renal failure and for cardiac treatment, transplantation of
kidney etc.
Medical Coverage
The workers who are affected by T.B., cancer or leprosy and those
who undergo kidney transplantation, heart bye-pass surgery and treatment
for brain tumor are granted leave with wages for a maximum period of one
year, besides reimbursement of the medical expenses during the period of
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leave on production of Medical Certificate from a Recognized Medical
Institution.
Accident Benefits
Full wages are being paid to the workmen during the period of their
absence due to accident as against half monthly wages provided in the
Workmen’s Compensation Act. Further, the mills also meet the entire
expenditure on the medical treatment to the victim of the accident.
Insurance
Group Gratuity Scheme and Salary Scheme are implemented in the
mills. A sum of Rs. 2,00,000 is being paid to the employees in the event
of death.
Funeral Expenses
A sum of Rs. 10,000 is paid as funeral expenses to the employee’s
family in the event of death. The actual expenditure to carry the body of
the deceased employee to his native place from the place of death is
met by the mills.
Employment Opportunity for the Dependents of Deceased Employees
Employment is offered to the dependents of deceased employees of
this mill. in an extraordinary and special cases
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Trade Unions
There are 18 Labour Unions in the mills. The names with their Registration
numbers are given below.
1. Perambalur Sugar Mills Employees Union, (CITU) 310/TRI
2. Workers Progressive Union (DMK) 330/TRI
3. Perambalur Sugar Mills Dr. Puratchi Thalaivi
Thozhilalar Sangam (ADMK) 1001/TRI
4. Nehru Sugar Mills National General Workers Union (INTUC) 1 507/TRI
5. United from Federation for Repatriate workers 285/TRI
6. Perambalur Sugar Mills Staff Association 599/TRI
7. Perambalur Sugar Mills Workers Union (AITUC) 681/TRI
8. Cane Assistant’s Association 646/TRI
9. Dr. Ambedkar Thozhilalar Sangam 890/TRI
10. Pattali. Thozhilalar Sangam (PMK) 863/TRI
11. B.P.Mandal Association 1037/TRI
12. Padhukavalar Sangam 778/TRI
13. Mazdoor Union 14/PBR
147
14. Marumalarchi Labour Federation (MDMK) 1061/TRI
15. Perambalur Sugar Mills Thozhilalar matrum
Paniyalargal Sangam 19/PBR
16. Thinakooli Thozhilalar Sangam 746/TRI
17. Driver’s Association ----
18. Technical Staff Association ----
148
CHAPTER IV OBJECTIVES AND HYPOTHESES
4.1 SCOPE OF THE STUDY
The scope of the study is to evaluate the effectiveness of existing
labour welfare measures practices and its impact on industrial relations of
the M/s Perambalur Sugar Mills Ltd, Eraiyur, Perambalur Dt., in
Tamilnadu. The reason for the selection of a public sector sugar mills is
that Tamilnadu State stands fourth in sugarcane production next to
Karnataka, Maharashtra and Uttar Pradesh. In the percentage of sugar
extracted from cane, Tamilnadu stands first (Sugar Industry
Performance Report – 2010-11). The Perambalur Sugar Mills Ltd in
Tamilnadu is a unique source which provides employment opportunity to
large number of rural populations that helps to enrich the standard of living
of the rural area.
4.2 OBJECTIVES OF THE STUDY
1) To understand the prevailing Industrial Relations in Perambalur
Sugar Mills Ltd., Eraiyur.
2) To study the level of satisfaction of employees with different Socio,
Economic and Demographic characteristics.
149
3) To find out association between Independent Variables and
Industrial Relations.
4.3 HYPOTHESES
1) There is significant difference between Male employees and Female
Employees in their opinion on the prevailing Industrial Relations.
2) There is significant difference between Married employees and
Unmarried Employees in their opinion on the prevailing IR.
3) There is significant difference between Rural employees and Urban
Employees in their opinion on the prevailing Industrial Relations.
4) There is significant difference between Employees at different Age
Groups in their opinion on the prevailing Industrial Relations.
5) There is significant difference between Employees with different
Experience in their opinion on the prevailing Industrial Relations.
6) There is significant difference between Employees with different
Monthly incomes in their opinion on the prevailing Industrial
Relations.
7) There is no association between the opinions on Workers’
Participation and Communication Process.
8) There is no association between the opinions on Workers’
Participation and Welfare Measures..
9) There is no association between the opinions on Workers’
Participation and Trade Unions.
150
10) There is no association between the opinions on Workers’
Participation and Grievance Mechanism.
11) There is no association between the opinions on
Communication Process and Welfare Measures.
12) There is no association between the opinions on
Communication Process and Trade Unions.
13) There is no association between the opinions on
Communication Process and Grievance Mechanism.
14) There is no association between the opinions on Welfare
Measures and Trade Union Relations.
15) There is no association between the opinions on Welfare
Measures and Grievance Mechanism.
16) There is no association between the opinions on Trade Union
Relations and Grievance Mechanism.
17) There is no significant difference between Mean Ranks
towards the opinion on Workers’ Participation in Management.
18) There is no significant difference between Mean Ranks
towards the opinion on Communication Process.
19) There is no significant difference between Mean Ranks
towards the opinion on Welfare Measures.
20) There is no significant difference between Mean Ranks
towards the opinion on Trade Union Relations.
151
21) There is no significant difference between Mean Ranks
towards the opinion on Grievance Mechanism.
22) The Correlation coefficient is significant.
152
CHAPTER V
RESEARCH METHODOLOGY
This section deals with the main aspects like scope of the
study, objectives of the study, research design, types of data collected,
questionnaires used, sampling technique adopted, period of data
collection, analytical tools used, hypothesis framed, cauterization and
limitations of the study.
5.1 RESEARCH DESIGN
The type of research design adopted for the purpose of the
present study is Descriptive type. Descriptive research design as the name
describe the characteristics of respondents, exhibits the relationship of
different variables adopted and makes one to understand the outcome of
different labour welfare measures and its impact on industrial relations.
Descriptive research is primarily concerned with the gathering of numeric,
statically reliable indicators like how much, how many, how often, what
items of study in the researcher’s interest. First descriptive research
requires a reasonably large number of respondents (i.e., sample size) to
supply the much needed information. Secondly, the selected sample of
respondents must be the representative of the parent population intended
for the research study. Thirdly, a standard questionnaire is to be adopted
for all sample respondents throughout the entire data collection process.
153
Data collection technique adopted for descriptive research necessitates
formal and structural interviews through methods like personal interviews,
mail surveys and telephonic interviews.
5.2 SOURCES OF DATA
The data for the study were collected from both the primary and
secondary sources. The secondary data required for the study were
collected from various books, journals, research articles, seminar reports,
study reports of expert committees and commissions, working papers,
records maintained in the industry and other published and unpublished
sources.
The Primary data pertaining to general information about the
Industry and its achievements, demographic variables, employee profile
and other independent variables, were collected from the selected
respondent by using the structured interview schedule. The entire text of
interview schedule is given in appendix 1. A pilot study was conducted for
finalising interview schedule. The schedule is pre tested to measure the
reliability of the data. Accordingly, necessary alterations were made in the
interview schedule.
154
5.3 VARIABLES USED
The variables taken for the study are classified as demographic
variables, factors of labour welfare measures and dimensions of industrial
relations. The five variables under study are as follows:
1. Workers’ Participation in Management
2. Communication
3. Labour Welfare Measures
4. Trade Union Relations
5. Grievance Mechanism.
5.4 PILOT SURVEY AND RELIABILITY TEST
Before the field survey was conducted, the consistency of the
information has become essential, for this purpose pilot survey was
conducted. A questionnaire has been prepared and supplied to 60
respondents of the sample units for extracting the tentative results and the
questionnaire was tested using cronbach alpha and the reliability
coefficient have obtained more than 0.8 which is considered to be reliable
for the variables which has five point scales. Based on the response given
155
by the respondents, the questionnaire has been modified in order to obtain
required information.
5.5 SAMPLE DESIGN
The study has been carried out among the employees including
Executives, Supervisors and Workers of M/S Perambalur Sugar Mills Ltd,
Eraiyur, Perambalur Dist. Sample selected for the study covers the
employees of various departments in M/S Perambalur Sugar Mills Ltd. All
the employees of the M/S Perambalur Sugar Mills Ltd constitute the
universe of the study. There are five categories of workers namely, skilled
workers, unskilled workers, supervisors, middle management and top
management. For the convenience sake, these categories are grouped
and classified into three namely, Workers, Supervisors and Executives.
As it is shown in the following table, there were 452 workers, 98
supervisors and 23 executives with a grand total of 573 employees at the
end of the year 2011. By using stratified - proportionate - random sampling
procedure, 158 Workers, 35 Supervisors and 7 Executives were selected.
Executives Supervisors Workers Total
Population size 23 98 452 573
Sample selected 16 68 316 400
156
The researcher had developed a five-point rating scale (i.e. Likert
type scale) highly satisfied, satisfied, ‘neither’ satisfied ‘nor’ dissatisfied,
dissatisfied and highly dissatisfied, for scaling the answers to the
questions.
5.6 ANALYTICAL TOOLS
The collected primary data have been statistically processed,
classified and tabulated by using appropriate methods. Tables, figures and
statistical results have been derived with the help of the computer software
package called SPSS.
The statistical tools used for analysis are percentages, means,
profile analysis, analysis of variances (ANOVA), t-tests, correlation,
multiple regression analysis, chi-square test, SEM (Structural Equation
Model), Friedman test, etc. A post hoc analysis is also made were ever a
significant difference was found.
The following types of analysis have been made in the given order:
Using nine selected items, a profile of the selected employees has
been drawn by adopting statistical tools like tables, percentages,
etc.
Using ‘percentage scores’ based on the opinion of the employees on
item wise analysis of the variables have been made and evaluated
the effectiveness of Industrial Relations prevailing in the industry.
157
‘Chi-square test’ was used to examine the association between
demographic variables, employee profile with Industrial Relations
and its components and other independent variables.
‘Student’s t-test’ was employed for judging significant mean
difference in the marital status of employees, gender of employees,
etc., towards dimensions of Industrial Relations.
ANOVA was applied to identify the significant mean difference
between more than two groups of categories of demographic
characteristics, employee profile, and other independent variables
with dependent variable- Industrial Relations.
Correlation analysis has been used to examine the significant
relationship of independent variables with the dependent variable-
Industrial Relations.
Multiple regression analysis has been employed to find the
relationship between demographic variables of employees, employee
profile and independent variables towards the dependent variable-
Industrial Relations.
158
5.7. CHAPTER ORDERING
Chapter I : Introduction
Chapter II : Review of Literature
Chapter III : Need for the study & Company Profile
Chapter IV: Objectives & Hypotheses
Chapter IV: Research Methodology
Chapter V : Analysis and Interpretation of Data
Chapter VI : Findings, Conclusions and Suggestions
159
5.8 LIMITATIONS OF THE STUDY
This study has the following limitations;
The study is confined to industrial relations only. The other
related issues like Industrial disputes are beyond the purview
of the study.
The Industrial Relations is analysed only on five dimentions,
namely, Workers’ Participation, Communication, Labour
Welfare Measures, Trade Union Relations and Grievance
Mechanism. Other dimensions are excluded in the analysis.
The study has focused only on one Public Sector Sugar Mill
and it has not covered the other Public sector, Cooperative
and Private sector sugars mills at Tamilnadu.
The findings and recommendation drawn in the study cannot
be universalized with the other industries in the country.
160
CHAPTER - VI
RESULTS AND DISCUSSION
Analysis and interpretation is the life in the research process. The
aim of the analysis is to organize, classify and summarize the data
collected to better comprehended and interpreted for giving answers to the
questions that caused the research. Interpretation is to search for the
broader meaning of the findings. Interpretation fulfills Analysis; and
interpretation cannot be preceded without analysis. Hence, both are inter
dependent.
This chapter attempts to carry out a detailed analysis of the
collected data as per the objectives stated earlier. Hypotheses are formed
and tested based on the findings of the study by which interpretations and
conclusions are drawn. The Statistical techniques viz., Descriptive analysis
and inferential statistics etc are implemented for the analysis of the data
collected for the present study.
6.1. PERCENTAGE ANALYSIS ON SOCIO-DEMOGRAPHIC VALUES
One of the basic but effective statistical measures which is used to
describe the characteristics of the sample or population in totality is
Percentage analysis. The opinions of the employees about the Industrial
Relations may vary from one employee to another based on Socio –
demographic back ground. Hence, it is inevitable to understand the socio-
economic and personal elements which influence the employees’ opinion.
For this purpose the following Eight aspects related to them are collected
and analyzed here: (1) Sex (2) Marital Status (3) Urban/Rural Background
(4) Designation (5) Age of the respondent (6) Educational Qualification (7)
Total Experience and (8) Monthly income.
161
6.1.1. Sex
Percentage Analysis of Sex-wise distribution of the sample respondents is
given in Table 6.1.1.
Table - 6.1.1
Frequency Distribution of Male and Female Employees
Sex Frequency Percentage
Male 326 81.5
Female 74 18.5
Total 400 100.0
Source: Primary Data
The above table shows that, out of 400 employees interviewed 81.5
percent are male employees and 18.5 percent are female employees.
Figure - 6.1.1: Pie chart Male and Female Employees
162
6.1.2. Age
Percentage Analysis of Age wise distribution of sample respondents
is given in Table 6.1.2.
Table - 6.1.2
Frequency Distribution of Age-Wise data of Employees
Age Group Frequency Percentage
Below 30 186 46.5
30 – 40 146 36.5
Above 40 68 17.0
Total 400 100.0
Source: Primary Data
Below 30 years is the predominant age group with 46.5 percent of
employees followed between 30 and 40 years old at 36.5 percent and the
rest 17 percent in the age group of above 40 years old.
Figure - 6.1.2: Pie chart of Age-Wise data of Employees
163
6.1.3. Marital Status
Percentage Analysis of Marital Status distribution of sample respondents is
given in Table 6.1.3.
Table - 6.1.3
Frequency Distribution of Marital Status of Employees
Marital Status Frequency Percentage
Married 322 80.5
Unmarried 78 19.5
Total 400 100.0
Source: Primary Data
The Marital Status of the respondents’ shows that 80.5 percent of the
employees are married and 19.5 percent are unmarried.
Figure - 6.1.3: Pie chart of Marital Status of Employees
164
6.1.4. DOMICILE
Percentage Analysis of Rural / Urban Background distribution of
sample respondents is given in Table 6.1.4.
Table - 6.1.4
Frequency Distribution of Domicile of Employees
Place Frequency Percentage
Urban 128 32.0
Rural 272 68.0
Total 400 100.0
Source: Primary Data
Rural / Urban Background analysis of the respondents reveals that
majority 68 percent of the respondent are hail from rural areas were as 32
percent of the respondents belong to urban areas.
Figure - 6.1.4: Pie chart of Domicile of Employees
165
6.1.5. Designation
Percentage Analysis of Designation distribution of sample respondents is
given in Table 6.1.5.
Table - 5.1.5 Frequency Distribution of Designation of Employees
Designation Frequency Percentage
Executives 16 4.0
Supervisor 68 17.0
Worker 316 79.0
Total 400 100.0
Source: Primary Data
Analysis of the designation of the respondents shows that out of 400
employees interviewed, 79 percent are Executives, 17 percent of the
respondents are Supervisors and 4 percent of the respondents are
Workers.
Figure - 6.1.5: Pie chart of Designation of Employees
166
6.1.6 Qualification of Employees
It is general belief that highly qualified employees are easier to
handle, train and motivate. Percentage Analysis of Educational
qualification wise distribution of sample respondents is given in Table
5.1.6.
Table - 6.1.6
Frequency Distribution of Educational Qualification of Employees
Educational Qualification Frequency Percentage
Upto SSLC 102 25.5
HSC 216 54.0
Graduation 82 20.5
Total 400 100.0
Source: Primary Data
The above table reveals that, out of 400 employees interviewed, majority
of the respondents 62 percent are HSC followed by up to SSLC and
Graduates as 25.5 percent and 20.5 percent respectively.
Figure - 6.1.6: Pie chart of Educational Qualification of Employees
167
6.1.7. Experience
Percentage Analysis of Experience-wise distribution of sample
respondents is given in Table 6.1.7.
Table - 6.1.7
Frequency Distribution of Experience- of Respondents
Experience in Years Frequency Percentage
Below 5 years 125 31.25
5-10 years 210 52.5
Above 10 years 65 16.25
Total 400 100.0
Source: Primary Data
Experience-wise analysis of the respondents shows that 52.5
percent of the respondents have 5 to 10 years of experience, about 31.25
percent have below 5 years of experience and only 16.25 percent of
respondents have above 10 years experience.
Figure - 6.1.7: Pie chart of Experience- of Respondents
168
6.1.8. Monthly Income
Percentage Analysis of Monthly Income wise distribution of sample
respondents is given in Table 6.1.8.
Table - 6.1.8 Frequency Distribution of Monthly Income of employees
Monthly Income in Rs. Frequency Percentage
Below 10000 67 16.75
10001-17500 126 31.5
17501-25000 122 30.5
Above 25000 85 21.25
Total 400 100.0
Source: Primary Data
Monthly Income-wise analysis of the respondents shows that 31.5
percent of the respondents have Rs.10,001-17,500 income, 30.5 percent
of the respondents have an income of Rs.17,501- 25,000, 21.25 percent of
the respondents have an income of above Rs.25,000 and the remaining
16.75 percent of the respondents have below Rs.10,000 income.
Figure - 6.1.8: Bar Chart of Monthly Income of employees
169
The analysis of sample profile reveals the following facts:
1. The industry is pre dominated with the male employees (81.5 %)
2. More than 80.5% of the respondents are married.
3. Majority of the respondents (68%) hail from Rural Background.
4. Majority of the respondents (79 %) are workers.
5. Majority of the respondents (46.5 %) are in the age group of 30-40
years.
6. Majority of the respondents (54%) are having an educational
qualification of HSC.
7. More than 52 % of the respondents have 5-10 years of experience.
8. Majority of the respondents (62 %) have the monthly income of
Rs.10,001-25000.
6.2. ANALYSIS OF VARIABLES
The Attitude of employees towards Industrial Relations is
determined by analyzing their satisfaction levels in each of the selected
items under the Five variables identified for the purpose.
S. No. Identified Variables Sub- Component items
1 Workers’ Participation 7
2 Communication Process 7
3 Welfare Measures 20
4 Trade Union Relations 6
5 Grievance Mechanism Procedures
10
170
6.2.1. Variable 1: Workers’ Participation in Managment
The following table shows the level of satisfaction of employees on
the Workers’ Participation in Management. .
Table - 6.2.1
Level of satisfaction of employees on the Workers’ Participation
Level of Satisfaction Frequency Percentage
Low 109 27.25
Moderate 202 50.5
High 89 22.25
Total 400 100.0
Source: Primary Data
The above table shows that, 50.5 percent employees have moderate level
of satisfaction, 27.25 percent employees have low level of satisfaction and
22.25 percent of the employees have high level of satisfaction on Workers’
Participation dimension of Industrial Relations. Hence it is seen that
majority of the employees in the organization have moderate level of
satisfaction on Workers’ Participation in Management.
171
6.2.2. Variable 2: Communication
The following table shows the level of satisfaction of employees on
Communication prevails in the concern.
Table - 6.2.2
Level of satisfaction of employees on Communication
Level of Satisfaction Frequency Percentage
Low 96 24.0
Moderate 219 54.75
High 85 21.25
Total 400 100.0
Source: Primary Data
The above table shows that, 54.75 percent employees have
moderate level of satisfaction, 24.0 percent employees have low level of
satisfaction and 21.25 percent of the employees have high level of
satisfaction on Communication dimension of Industrial Relations. Hence it
is seen that majority of the employees in the organization have moderate
level of satisfaction on Communication in Management.
172
6.2.3. Variable 3: Welfare Measures
The following table shows the level of satisfaction of employees on the
Welfare Measures provided in the organization.
Table - 6.2.3
Level of satisfaction of employees on Welfare Measures
Level of Satisfaction Frequency Percentage
Low 106 26.5
Moderate 198 49.5
High 96 24.0
Total 400 100.0
Source: Primary Data
The above table shows that, 49.5 percent employees have
moderate level of satisfaction, 26.5 percent employees have low level of
satisfaction and 24 percent of the employees have high level of
satisfaction on Welfare Measures dimension of Industrial Relations. Hence
it is seen that majority of the employees in the organization have moderate
level of satisfaction on Welfare Measures.
173
6.2.4. Variable 4: Trade Union Relations
The following table shows the level of satisfaction of employees on
the Trade Union Relations prevailing in the organization.
Table 6.2.4
Level of satisfaction of employees on Trade Union Relations
Level of Satisfaction Frequency Percentage
Low 102 25.5
Moderate 132 33.0
High 166 41.5
Total 400 100.0
Source: Primary Data
The above table shows that, 41.5 percent employees have High level of
satisfaction, 33.0 percent employees have Moderate level of satisfaction
and 25.5 percent of the employees have Low level of satisfaction on Trade
Union Relations dimension of Industrial Relations. Hence it is seen that
majority of the employees in the organization have moderate level of
satisfaction on Trade Union Relations.
174
6.2.5. Variable 5: Grievance Mechanism
The following table shows the level of satisfaction of employees on
the Grievance Mechanism employed to resolve the grievances of the
employees.
Table - 6.2.5
Level of satisfaction of employees on the Grievance Mechanism
Level of Satisfaction Frequency Percentage
Low 95 23.75
Moderate 185 46.25
High 120 30.0
Total 400 100.0
Source: Primary Data
The above table shows that, 46.5 percent employees have Moderate level
of satisfaction, 30.0 percent employees have High level of satisfaction and
23.75 percent of the employees have Low level of satisfaction on
Grievance Mechanism dimension of Industrial Relations. Hence it is seen
that majority of the employees in the organization have moderate level of
satisfaction on Grievance Mechanism.
175
6.3. INFERENTIAL ANALYSIS
In this section Student t test, ANOVA and Chi-square test are employed to
bring out inferences by testing proper Hypothesis:
HYPOTHESIS I
Null Hypothesis: There is no significant difference between Male and
Female employees with respect to dimensions of Industrial Relations..
Table - 6.3.1: Perceptions of Male and Female employees with respect
to Industrial Relations showing Mean, SD, t- significant level of mean
Dimension of HRM
Sex t
value p
value Male Female
Mean SD Mean SD
Workers’ Participation 39.54 2.33 38.45 2.36 0.356 0.722
Communication 18.95 1.68 19.34 1.98 1.341 0.181
Welfare Measures 68.95 2.84 68.36 3.87 1.130 0.260
Trade union Relations 20.82 2.24 20.79 2.37 0.079 0.937
Grievance Mechanism 24.14 1.95 24.13 1.74 0.051 0.960
Source: Primary Data
From the P – Value, it is concluded that there is no significant difference
between Male and Female employees with respect to all dimensions of
Industrial Relations.
176
HYPOTHESIS II
Null Hypothesis: There is no significant difference between Married and
Unmarried employees with respect to dimensions of Industrial Relations
Table - 6.3.2 Perceptions of Married and Unmarried employees with
respect to Industrial Relations showing Mean, SD, t- significant level
of mean
Dimensions of Industrial Relations
Status t
value p
value Married Unmarried
Mean SD Mean SD
Workers’ Participation 44.01 2.21 44.87 2.43 2.500 0.013
Communication 18.39 1.69 19.42 1.69 4.153 0.000
Welfare Measures 68.04 3.46 69.26 2.80 2.723 0.007
Trade union Relations 19.95 2.32 21.32 2.07 4.318 0.000
Grievance Mechanism 23.82 1.68 24.33 2.00 1.809 0.072
Source: Primary Data
From the P – Value, it is concluded that there is no significant difference
between Married and Unmarried employees with respect to Grievance
mechanism.
There is significant difference between Married and Unmarried employees
with respect to Workers’ Participation, Communication, Welfare Measures
and Trade Union Relations.
177
HYPOTHESIS III
Null Hypothesis: There is no significant difference between Places of
residence with respect to dimensions of Industrial Relations.
Table - 6.3.3 Perceptions of Rural and Urban employees with respect
to Industrial Relations showing Mean, SD, t- significant level of mean
Dimension of HRM Place
t value
p value
Urban Rural Mean SD Mean SD
Workers’ Participation 44.59 2.45 44.45 2.13 0.356 0.722
Communication 18.95 1.68 19.34 1.98 1.341 0.181
Welfare Measures 68.95 2.84 68.36 3.87 1.130 0.260
Trade union Relations 20.82 2.24 20.79 2.37 0.079 0.937
Grievance Mechanism 24.14 1.95 24.13 1.74 0.051 0.960
Source: Primary Data From the P – Value, it is concluded that there is no significant difference
between Urban and Rural employees with respect to all dimensions of
Industrial Relations.
178
HYPOTHESIS IV
Null Hypothesis: There is no significant difference between Age Group
with respect to dimension of Industrial Relations.
Table - 6.3.4 ANOVA for Significant Difference between Age Group
with Respect to Dimension of IR
Dimension of IR Age Group in years
F value
p value Below
30 30-40
Above 40
Workers’ Participation 44.19 44.87 44.42 1.625 0.199
Communication 18.79 19.22 19.02 1.089 0.339
Welfare Measures 68.08 69.14 69.16 2.576 0.079
Trade union Relations 20.05a 21.15b 21.18b 5.457 0.005
Grievance Mechanism 23.92 24.26 24.20 0.625 0.537 Note: 1. ** Denotes significant at 1% level Source: Primary Data 2. Different alphabet between Age Group of employee denotes significant at 5% level using Duncan Multiple Range test From the p-value, there is significant difference between age group with at
5 percent level but there is no significant difference between age respect
to Trade union Relation. Based on Duncan Multiple Range Test (DMRT)
the age group of below 30 years of employee are significantly differ with
30-40 and above 40 years group of 30-40 and above 40 in the dimension
of Trade union Relations.
There is no significant difference between Age Group with respect to
Workers’ Participation, Communication, Welfare Measures and Grievance
Mechanism.
179
HYPOTHESIS V
Null Hypothesis: There is no significant difference between Experiences
with respect to dimension of Industrial Relations.
Table - 6.3.5 ANOVA for Significant Difference between Experiences
with respect to Dimension of IR
Dimension of IR
Experience in years F
value p
value Below 5
5-10 Above
10
Workers’ Participation 44.14 44.86 44.51 1.555 0.214
Communication 19.05 19.05 19.02 0.007 0.993
Welfare Measures 67.95a 68.94ab 69.44b 3.532 0.031*
Trade union Relations 20.14a 20.99b 21.19b 3.607 0.029*
Grievance Mechanism 24.05 23.94 24.51 1.639 0.197
Source: Primary Data . From the p – value, it is concluded that there is significant difference
between Experiences with respect to Welfare Measure and Trade union
Relations. Based on Duncan Multiple Range Test (DMRT) the experience
of below 5 years employees are significantly differ from > 10 years at 5
percent level but the age group of 5-10 does not differ from <5 years and
5-10 years in Welfare Measure. In Trade union Relation the experience of
below 5 years of employee are significantly differ from other two groups at
5 percent level but there is no significant difference between experience of
5-10 years and above 10 years at 5 percent level
There is no significant difference between Experience with respect to
Workers’ Participation, Communication and Grievance Mechanism.
180
HYPOTHESIS VI
Null Hypothesis: There is no significant difference between Monthly
Income with respect to dimension of Industrial Relations.
Table - 6.3.6 ANOVA for Significant Difference between Monthly
Income with Respect to Dimension of IR
Dimension of HRM
Monthly Income (in Rs.) F
value p
value Below 10000
10001-17500
17501-25000
Above 25000
Workers’ Participation
44.23 44.71 44.88 44.47 0.745 0.527
Communication 19.23 18.97 18.90 19.00 0.352 0.788
Welfare Measures
68.00a 68.86a 68.72a 70.38b 4.321 0.006
Trade union Relations
20.23a 20.89a 20.60a 22.03b 4.903 0.003
Grievance Mechanism
24.05 24.00 24.18 24.56 0.695 0.556
Source: Primary Data Since p-value is less than 0.01 the Null hypothesis is rejected at 1
percent level of significance with regard to Welfare Measure and Trade
union Relations. Hence there is significant difference between monthly
income with respect to Welfare Measures and Trade union Relations.
Based on Duncan Multiple Range Test (DMRT) the monthly income of
above Rs.25,000 is significantly differ with all other income groups at 5
percent level but there is no significant difference between the monthly
income of below Rs.10,000, Rs.10,001-17,500 and Rs.17,501-25,000 in
both the above dimensions.
There is no significant difference between monthly income with
respect to Workers’ Participation, Communication and Grievance
Mechanism.
181
HYPOTHESIS VII
Null Hypothesis: There is no association between the opinion on
Workers’ Participation and Communication.
Table - 6.3.7 Chi-square table for Workers’ Participation and
Communication
Level of Worker’s
Participation
Level of Communication Total
Chi-square Value
p value
Low Average High
Low 40
(51.3%) [33.3%]
30 (38.5%) [18.5%]
8 (10.3%)[6.8%]
78
26.309 0.000
** Average
72 (32.7%) [60.0%]
88 (40.0%) [54.3%]
60 (27.3%)[50.8%]
220
High 8
(7.8%) [6.7%]
44 (43.1%) [27.2%]
50 (49.0%)[42.4%]
102
Total 120 162 118 400 Note: 1. The value within ( ) refers to Row % Source: Primary Data 2. The value within [ ] refers to Column % 3. ** Denotes significant at 1% level Since p-value less than 0.01, it is concluded that there is association
between the opinion of employees on Workers’ Participation and
Communication process.
182
HYPOTHESIS VIII
Null Hypothesis: There is no association between the opinion on Workers’
Participation and Welfare Measures.
Table - 6.3.8 Chi-square table for Workers’ Participation and Welfare
Measures
Level of Workers’
Participation
Level of Welfare MeasuresTotal
Chi-square Value
p valueLow
Average
High
Low 46
(54.8%)[38.3%]
30 (35.7%)[18.5%]
8 (9.5%) [6.8%]
84
31.809 0.000 Average
66 (28.7%)[55.0%]
102 (44.3%)[63.0%]
62 (27.0%) [52.5%]
130
High 8
(.3%) [6.7%]
30 (34.9%)[18.5%]
48 (55.8%) [40.7%]
86
Total 120 162 118 400 Note: 1. The value within ( ) refers to Row % Source: Primary Data 2. The value within [ ] refers to Column % 3. ** Denotes significant at 1% level Since p-value less than 0.01, it is concluded that there is association
between the opinion on Workers’ Participation and Welfare Measures.
183
HYPOTHESIS IX
Null Hypothesis: There is no association between the opinion on Workers’
Participation and Trade Union Relations.
Table - 6.3.9 Chi-square table for Workers’ Participation and
Trade Union Relations
Level of Workers’
Participation
Level of Trade Union Relations Total
Chi-square Value
p-
valueLow Averag
e High
Low 48
(60.0%)[40.0%]
28 (35.0%)[17.3%]
4 (5.0%) [3.4%]
80
30.259 0.000
** Average
64 (26.2%)[53.3%]
102 (41.8%)[63.0%]
78 (32.0%) [66.1%]
244
High 8
(10.5%)[6.7%]
32 (42.1%)[19.8%]
36 (47.4%) [30.5%]
76
Total 120 162 118 400 Note: 1. The value within ( ) refers to Row % Source: Primary Data 2. The value within [ ] refers to Column % 3. ** Denotes significant at 1% level Since p-value less than 0.01, it is concluded that there is association
between the opinion on Workers’ Participation and Trade Union Relations.
184
HYPOTHESIS X
Null Hypothesis: There is no association between the opinion on Workers’
Participation and Grievance Mechanism.
Table - 6.3.10 Chi-square table for Workers’ Participation and
Grievance Mechanism
Level of Workers’
Participation
Level of Grievance Mechanism
Total Chi-
square Value
p value
Low Averag
e High
Low 66
(58.9%) [55.0%]
38 (33.9%)[23.5%]
8 (7.1%) [6.8%]
112
40.794 0.000
** Average
38 (21.3%) [31.7%]
84 (47.2%)[51.9%]
56 (31.5%)[47.5%]
178
High 16
(14.5%) [13.3%]
40 (36.4%)[24.7%]
54 (49.1%)[45.8%]
110
Total 120 162 118 400 Note: 1. The value within ( ) refers to Row % Source: Primary Data 2. The value within [ ] refers to Column % 3. ** Denotes significant at 1% level Since p-value less than 0.01, it is concluded that there is association
between the opinion on Workers’ Participation and Grievance Mechanism.
185
HYPOTHESIS XI
Null Hypothesis: There is no association between the opinion on
Communication and Welfare Measures.
Table - 6.3.11 Chi-square table for Communication and
Welfare Measures
Level of Communicati
-on
Level of Welfare Measures
Total Chi-
square Value
p valueLow
Average
High
Low 50
(64.1%)[43.9%]
22 (28.2%)[16.9%]
6 (7.7%) [3.8%]
78
55.152 0.000
** Average
56 (25.5%)[49.1%]
88 (40.0%)[67.7%]
76 (34.5%) [48.7%]
220
High 8
(7.8%) [7.0%]
20 (19.6%)[15.4%]
74 (72.5%) [47.4%]
102
Total 114 130 156 400 Note: 1. The value within ( ) refers to Row % Source: Primary Data 2. The value within [ ] refers to Column % 3. ** Denotes significant at 1% level Since p-value less than 0.01, it is concluded that there is association
between the opinion on Communication and Welfare Measures.
186
HYPOTHESIS XII
Null Hypothesis: There is no association between the opinion on
Communication and Trade Union Relations.
Table - 6.3.12 Chi-square table for Communication and
Trade Union Relations
Level of Communic
ation
Level of Trade Union Relations
Total Chi-
square Value
p value
Low Averag
e High
Low 50
(62.5%) [43.9%]
20 (25.0%)[15.4%]
10 (12.5%) [6.4%]
80
43.962 0.000*
* Average
60 (24.6%) [52.6%]
92 (37.7%)[70.8%]
92 (37.7%) [59.0%]
244
High 4
(5.3%) [3.5%]
18 (23.7%)[13.8%]
54 (71.1%) [34.6%]
38
Total 57 65 78 200 Note: 1. The value within ( ) refers to Row % Source: Primary Data 2. The value within [ ] refers to Column % 3. ** Denotes significant at 1% level Since p-value less than 0.01, it is concluded that there is association
between the opinion on Communication and Trade Union Relations.
187
HYPOTHESIS XIII
Null Hypothesis: There is no association between the opinion on
Communication and Grievance Mechanism.
Table - 6.3.13 Chi-square table for Communication and
Grievance Mechanism
Level of Communic
-ation
Level of Grievance
Mechanism Total Chi-
square Value
p value
Low Average High
Low 44
(52.4%) [38.6%]
28 (33.3%) [21.5%]
12 (14.3%)[7.7%]
84
33.610 0.000*
* Average
62 (27.0%) [54.4%]
84 (36.5%) [64.6%]
84 (36.5%)[53.8%]
230
High 8
(9.3%) [7.0%]
18 (20.9%) [13.8%]
60 (69.8%)[38.5%]
86
Total 114 130 156 400 Note: 1. The value within ( ) refers to Row % Source: Primary Data 2. The value within [ ] refers to Column % 3. ** Denotes significant at 1% level Since p-value less than 0.01, it is concluded that there is association
between the opinion on Communication and Grievance Mechanism.
188
HYPOTHESIS XIV
Null Hypothesis: There is no association between the opinion on Welfare
Measures and Trade Union Relations.
Table - 6.3.14 Chi-square table for Welfare Measures and
Trade Union Relations
Level of Welfare
Measures
Level of Trade Union Relations
Total Chi-
square Value
p value
Low Averag
e High
Low 58
(51.8%) [50.9%]
42 (37.5%)[32.3%]
12 (10.7%) [7.7%]
112
42.817 0.000
** Average
46 (25.8%) [40.4%]
62 (34.8%)[47.7%]
70 (39.3%) [44.9%]
178
High 10
(9.1%) [8.8%]
26 (23.6%)[20.0%]
74 (67.3%) [47.4%]
110
Total 114 130 156 400 Note: 1. The value within ( ) refers to Row % Source: Primary Data 2. The value within [ ] refers to Column % 3. ** Denotes significant at 1% level Since p-value less than 0.01, it is concluded that there is association
between the opinion on Welfare Measures and Trade Union Relations.
189
HYPOTHESIS XV
Null Hypothesis: There is no association between the opinion on Welfare
Measures and Grievance Mechanism.
Table - 6.3.15 Chi-square table for Welfare Measures and
Grievance Mechanism
Level of Welfare
Measures
Level of Grievance Mechanism Total
Chi-square Value
p value
Low Average High
Low 30
(38.5%) [30.6%]
28 (35.9%) [15.4%]
20 (25.6%)[19.5%]
78
11.562 0.021
* Average
56 (25.5%) [57.1%]
108 (49.1%) [59.3%]
56 (25.5%)[46.7%]
220
High 12
(11.8%) [12.2%]
46 (45.1%) [25.3%]
44 (43.1%)[36.7%]
102
Total 98 182 120 400 Note: 1. The value within ( ) refers to Row % Source: Primary Data 2. The value within [ ] refers to Column % 3. ** Denotes significant at 1% level Since p-value less than 0.01, it is concluded that there is association
between the opinion on Welfare Measures and Grievance Mechanism.
190
HYPOTHESIS XVI
Null Hypothesis: There is no association between the opinion on Trade
Union Relations and Grievance Mechanism.
Table - 6.3.16 Chi-square table for Trade Union Relations and
Grievance Mechanism.
Level of Trade Union
Relations
Level of Grievance Mechanism Total
Chi-square Value
p value
Low Average High
Low 18
(42.9%) [36.7%]
17 (40.5%) [18.7%]
7 (16.7%)[11.7%]
42
13.057 0.011
* Average
26 (22.6%) [53.1%]
53 (46.1%) [58.2%]
36 (31.3%)[60.0%]
115
High 5
(11.6%) [10.2%]
21 (48.8%) [23.1%]
17 (39.5%)[28.3%]
43
Total 49 91 60 200 Note: 1. The value within ( ) refers to Row % Source: Primary Data 2. The value within [ ] refers to Column % 3. ** Denotes significant at 1% level Since p-value less than 0.01, it is concluded that there is association
between the opinion on Welfare Measures and Grievance Mechanism.
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HYPOTHESIS XVII
Null Hypothesis: There is no significant difference between mean ranks
towards opinion on Workers Participation in Management.
Table - 6.3.17 Friedman test for significant difference between mean
ranks towards opinion on Workers’ Participation in Management.
Workers’ Participation in Management Mean Rank
Chi-Square value
p value
Employee participation improves the morale of the employee which leads to better relations
4.97
62.314
0.000**
Employee participation enhances the sense of give and take which contributes to better relations
4.28
Employee participation promotes the mutual negotiation and resolution of conflicts between management and employees, thus ensuring peaceful industrial relations
4.28
Employee participation in management makes the managers feel threatened as their subordinates are equal with them
3.77
Employee participation foster organizational image by making the employee and the management come closer, stay closer and act together
4.81
Employee participation is a recognition of employee capability to share management responsibility
4.31
Employee participation enhance employee commitment to the organization
4.44
Note: ** Denotes significant at 1% level Source: Primary Data
Since the p-value is less than 0.01, the null hypothesis is rejected at 1
percent level of significance. Hence it is concluded that there is significant
difference between mean ranks towards opinion on Workers’ Participation
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in Management. Based on mean rank present Improvement in the morale
of employees (4.97) is most important factor in Workers’ Participation in
Management followed by Employees and management comes closer
(4.81), Enhances employee commitment to the organization (4.44),
Recognition of employee capability (4.31), Promotes the mutual
negotiation and resolution of conflicts (4.28) and Makes the managers feel
threatened as their subordinates are equal with them (3.77)
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HYPOTHESIS XVIII
Null Hypothesis: There is no significant difference between mean ranks
towards opinion on Communication Process.
Table - 6.3.18 Friedman test for significant difference between mean
ranks towards opinion on Communication Process.
Communication Process Mean Rank
Chi-Square value
p value
Daily information from Supervisors 7.10
127.644 0.000**
Your ideas are passed to the top 6.70
Feel comfortable with supervisors 7.33
Few people hoard information 6.98
Too many gate keepers 7.06
Information are accurate & timely 7.56
More Informal information 5.30
Note: ** Denotes significant at 1% level Source: Primary Data
Since the p-value is less than 0.01, the null hypothesis is rejected at 1
percent level of significance. Hence it is concluded that there is significant
difference between the opinions on Communication Process. Based on
mean rank present Information is accurate and timely (7.56) is the most
important factor in Communication Process which is followed by Feeling
comfortable with the supervisors, Daily information from the supervisors
(7.10), Too many Gate Keepers (7.06), Few people hoarding information
(6.98), The workers’ ideas are passed to the top(6.70) and the least
important factor is More Informal information (5.30).
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HYPOTHESIS XIX
Null Hypothesis: There is no significant difference between mean ranks
towards opinion on Welfare Measures.
Table - 6.3.19 Friedman test for significant difference between mean
ranks towards opinion on Welfare Measures.
Welfare measures Mean Rank Chi-
Square p-value
I am satisfied with canteen facility 8.77
51.307 0.000**
I am satisfied with drinking water 10.91
I am satisfied with lunch room and rest room
9.90
I am satisfied with recreational facilities 10.14
I am satisfied with library 10.95
I am satisfied with wash basin, toilets and urinals
11.28
I am satisfied with supply of uniform 10.29
I am satisfied with sitting facilities 10.66
I am satisfied with gloves and eye 10.28
I am satisfied with cycle sheds 9.89
I am satisfied with masks, hard protective hats and glasses
10.41
I am satisfied with first aid box 11.29
I am satisfied with fire fighting equipments
10.23
I am satisfied with ambulance facility 10.93
I am satisfied with transport facility 11.13
I am satisfied with spittoons 10.80
I am satisfied with housing facility 10.67
Note: ** Denotes significant at 1% level Source: Primary Data
Since the p-value is less than 0.01, the null hypothesis is rejected at 1
percent level of significance. Hence it is concluded that there is significant
195
difference between the opinions on Welfare Measures. Based on mean
rank, present First Aid Box (11.29), Wash Basin, toilet and urinals (11.28),
Transport facility (11.13) and Library (10.95) are considered to be very
important factors. However, Canteen (8.77), Cycle shed (9.89) and Lunch
room and Rest room (9.90) are the least important factors.
196
HYPOTHESIS XX
Null Hypothesis: There is no significant difference between mean ranks
towards opinion on Trade Union Relations.
Table - 6.3.20 Friedman test for significant difference between mean
ranks towards opinion on Trade Union Relations.
Trade Union relations
Mean Rank
Chi-Square
p value
I am proud that, I am a member of trade union 3.76
54.981 0.000**
I agree with the functioning of our union 3.15
I think that unions are politically motivated 4.05
Union fights for providing better labour welfare amenities
3.09
All union joint together for legitimate demands 3.57
Unions try to promote peace in the organization
3.40
My views are given importance by labour leaders
3.77
Union membership is a vital factor for job security
4.35
I will approve all the policies of trade union 3.55My union leaders consult with me before taking important decisions
3.22
My union leaders provide all the information relating to the negotiations with the management
4.35
My union leader conveys our grievances to the management regularly
4.22
Union maintains cordial relationship with the management
3.11
Healthy union activities are always encouraged
3.99
Note: ** Denotes significant at 1% level Source: Primary Data Since the p-value is less than 0.01, the null hypothesis is rejected at 1
percent level of significance. Hence it is concluded that there is significant
difference between opinions on Trade Union relations. Based on mean
rank present Union membership is for Job security (4.35), Unions sharing
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information on Negotiations (4.35), Unions conveying grievances to the
Management (4.05) are the most important factors in Trade Union
relations and Agreeing with union with all its functions (3.15), Union
maintaining cordial relationship with the Management (3.11) and Union
fighting for better Welfare Measures (3.09) are least important factors.
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HYPOTHESIS XXI
Null Hypothesis: There is no significant difference between mean ranks
towards opinion on Grievance Mechanism.
Table - 6.3.21 Friedman test for significant difference between mean
ranks towards opinion on Grievance Mechanism.
Grievance Mechanism Mean Rank
Chi-Square value
p value
Orientation on Grievance mechanism is given during induction
9.03
1003.970 0.000**
Regular monthly meetings are conducted to settle down the grievances
5.19
Workers’ feedback is accepted 5.15
Confidentiality is maintained 6.76
Suggestion box is located 8.23
Whistle blowers are protected 9.08
Workers are educated of the process 8.82
The system of recording is good 10.86
Note: ** Denotes significant at 1% level Source: Primary Data
Since p-value is less than 0.01, the null hypothesis is rejected at 1 percent
level of significance. Hence it is concluded that there is significant
difference between opinions on Grievance Procedure. Based on mean
rank, System of Recording (10.86) is the most important factor which is
followed by Whistle Blowers’ protection (9.08), Orientation during Induction
(9.03), Educating workers about the process (8.82), Location of suggestion
box (8.23), Maintaining Confidentiality (6.76), Conducting Regular monthly
meetings (5.19) and the least important factor is concluded to be Accepting
workers’ feedback (5.15)..
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Hypothesis XXII
Null Hypothesis: There is relationship between two Dimensions
Table – 6.3.22
Correlation Coefficient between Dimensions of Industrial Relations
Dimensions of Industrial Relations
Workers’ Participation
Communication Process
Welfare Measures
Trade Union Relations
Grievance Mechanism
Workers’ Participation 1.000 0.167* 0.341** 0.328** 0.363**
Communication Process - 1.000 0.365** 0.268** 0.490**
Welfare Measures - - 1.000 0.426** 0.486**
Trade Union Relations - - - 1.000 0.536**
Grievance Mechanism - - - - 1.000
* Correlation is significant at the 0.05 level (2-tailed). Source: Primary data ** Correlation is significant at the 0.01 level (2-tailed).
200
The Correlation Coefficient between Workers’ Participation and
Communication Process is 0.167 which indicate 17 percentage positive
relationships between these two dimensions and is significant at 5% level.
The Correlation Coefficient between Workers’ Participation and Promotion and
Welfare measures is 0.341 which indicate 34 percentage positive relationships
these two dimensions and is significant at 1% level.
The Correlation Coefficient between Workers’ Participation and Trade Union
relations is 0.328 which indicate 32 percentage positive relationships between
these two dimensions and is significant at 1% level.
The Correlation Coefficient between Workers’ Participation and Grievance
Mechanism is 0.363 which indicate 36 percentage positive relationships
between these two dimensions and is significant at 1% level.
The Correlation Coefficient between Communication Process and Welfare
Measures is 0.365 which indicate 37 percentage positive relationships
between these two dimensions and is significant at 1% level.
The Correlation Coefficient between Communication Process and Trade
Union Relations is 0.268 which indicate 27 percentage positive relationships
between these two dimensions and is significant at 1% level.
The Correlation Coefficient between Communication Process and Grievance
Mechanisms is 0.490 which indicate 49 percentage positive relationships
between these two dimensions and is significant at 1% level
The Correlation Coefficient between Welfare Measures and Trade Union
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Relations is 0.426 which indicate 43 percentage positive relationships
between these two dimensions and is significant at 1% level.
The Correlation Coefficient between Welfare Measures and Grievance
Mechanisms is 0.486 which indicate 49 percentage positive relationships
between these two dimensions and is significant at 1% level.
The Correlation Coefficient between Trade Union Relations and Grievance
Mechanism is 0.536 which indicate 54 percentage positive relationships
between these two dimensions and is significant at 1% level
REGRESSION ANALYSIS OF JOB SATISFACTION ON VARIOUS DEMOGRAPHIC FACTORS Regression is the determination of statistical relationship between two or more
variables. In simple regression two variables are used. One variable
(independent) is the cause of the behaviour of another one (dependent).
When there are more than two independent variables the analysis concerning
relationship is known as multiple correlations and the equation describing
such relationship is called as the multiple regression equation.
Regression analysis is concerned with the derivation of an appropriate
mathematical expression is derived for finding values of a dependent variable
on the basis of independent variable. It is thus designed to examine the
relationship of a variable Y to a set of other variables X1, X2, X3……….Xn. the
most commonly used linear equation in
Y = b1 X1 + b2 X2 +……+ bn Xn + b0
Here Y is the dependent variable, which is to be found. X1 , X2 ,… and
Xn are the known independent variables with which predictions are to be made
and b1, b2 ,….bn are Regression coefficients.
202
Let us have the dependent variable and independent variables as
follows:
Dependent variable : Job satisfaction (Y)
Independent variables
1) Sex (X1)
2) Age group in years (X2)
3) Marital status (X3)
4) Place (X4)
5) Designation (X5)
6) Educational qualification (X6)
7) Experience in years (X7)
8) Monthly income (X8)
Multiple R- value : 0.804
R -Square value : 0.646
F- value : 38.510
p- value : 0.000**
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Table – 6.3.23
Variables in the Multiple Regression Analysis
Variables Unstandardized
co-efficient S.E. of B
Standardizedco-efficient
t value
p value
Constant 36.212 1.810 20.005 0.000**
X1 -1.625 0.506 -0.200 -3.211 0.002**
X2 -0.691 0.569 -0.054 -1.215 0.226
X3 1.546 0.378 0.208 4.086 0.000**
X4 0.891 0.319 0.206 2.793 0.006**
X5 3.433 0.306 0.526 11.217 0.000**
X6 0.641 0.244 0.125 2.631 0.009**
X7 0.209 0.347 0.050 0.601 0.548
X8 0.478 0.467 0.137 2.856 0.005**
* Significant at the 0.05 level. Source: Primary data ** Significant at the 0.01 level. The multiple correlation coefficient is 0.804 measures the degree of
relationship between the actual values and the predicted values of the Trade
Union Relations. As the predicted values are obtained as a linear combination
of Sex (X1), Age (X2), Marital status (X3), Place (X4), Designation(X5),
Educational qualification (X6), Experience in years (X7) and Monthly income
(X8), the coefficient value of 0.804 indicates that the relationship between
Trade Union Relations and the Eight independent variables is quite strong and
positive.
The Coefficient of Determination R-square measures the goodness-of-fit of
the estimated Sample Regression Plane (SRP) in terms of the proportion of
the variation in the dependent variables explained by the fitted sample
regression equation. Thus, the value of R square is 0.646 simply means that
about 64.6% of the variation in Trade Union Relations is explained by the
estimated SRP that uses Sex (X1), Age (X2), Marital status (X3), Place (X4),
Designation(X5), Educational qualification (X6), Experience in years (X7) and
Monthly income (X8) as the independent variables and R square value is
significant at 1 % level.
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The multiple regression equation is
Y = 36.212 - 1.625X1 - 0.691X2 + 1.546X3 + 0.891X4 + 3.433X5 +
0.641X6 + 0.209X7 + 0.478X8
The coefficient of X1 is -1.625 represents the partial effect of Sex on Trade
Union Relations, holding the other independent variables as constant. The
estimated negative sign implies that such effect is negative that Trade Union
Relations would decrease by 1.625 for every unit increase in Sex and this
coefficient value is significant at 1% level.
The coefficient of X2 is -0.691 represents the partial effect of on Age, holding
other independent variable as constant. The estimated negative sign implies
that such effect is negative that Trade Union Relations would decrease by -
0.691 for every unit decrease in Age and this coefficient value is not significant
at 5% level.
The coefficient of X3 is 1.546 represents the partial effect of Marital status on
Trade Union Relations, holding the other independent variables as constant.
The estimated positive sign implies that such effect is positive that Trade
Union Relations would increase by 1.546 for every unit increase in Marital
status and this coefficient value is significant at 1% level.
The coefficient of X4 is 0.891 represents the partial effect of Place of birth on
Trade Union Relations, holding the other independent variables as constant.
The estimated positive sign implies that such effect is positive that Trade
Union Relations would increase by 0.891 for every unit increase in Place of
birth and this coefficient value is significant at 1% level.
The coefficient of X5 is 3.433 represents the partial effect of Designation on
Trade Union Relations, holding the other independent variables as constant.
The estimated positive sign implies that such effect is positive that Trade
Union Relations would increase by 3.433 for every unit increase in
Designation and this coefficient value is significant at 1% level.
The coefficient of X6 is 0.641 represents the partial effect of Educational
qualification on Trade Union Relations, holding the other independent
205
variables as constant. The estimated positive sign implies that such effect is
positive that Trade Union Relations would increase by 0.641 for every unit
increase in Educational qualification and this coefficient value is significant at
1% level.
The coefficient of X7 is 0.209 represents the partial effect of Experience in
years on Trade Union Relations, holding the other independent variables as
constant. The estimated positive sign implies that such effect is positive that
Trade Union Relations would increase by 0.209 for every unit increase in
Experience in years and this coefficient value is not significant at 5% level.
The coefficient of X9 is 0.478 represents the partial effect of Monthly income
on Trade Union Relations, holding the other independent variables as
constant. The estimated positive sign implies that such effect is positive that
Trade Union Relations would increase by 0.209 for every unit increase in
Monthly income and this coefficient value is not significant at 5% level.
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CHAPTER - VII
FINDINGS AND CONCLUSIONS
The findings relating to the analysis of demographic and employee
profile with regard to Industrial Relations are discussed below. The findings
related to the other independent variables like Workers’ Participation in
Management, Communication Process, Welfare Measures, Trade Union
Relations and Grievance Mechanism that influence the Industrial Relations at
M/S Perambalur Sugar Mills Ltd, Eraiyur, Perambalur Dist.
7.1 Distribution of Demographic Variables
It is evident from the descriptive statistics of the employee’s
demographic characteristics, that majority of the employees taking part in this
study were 81.5% male; employees aged below 30 are 47%; in terms of
marital status 80.5% employees were married; in terms of educational
qualification 54% employees had completed HSC; in terms of location 68%
employees were from rural place.
7.2 Distribution of Employee Profile Variables
It is clear from the descriptive statistics of the employee’s profile, the
employee’s job positions are categorized as Executives, Supervisors and
Workers. Majority of the employees 74% were engaged in workers role.
Regarding their experience, 52% had 5 to 10 years experience. Around 62%
are in the income of Rs 10000 to 25000. Majority of the employees
179(89.5%) reached their present post through direct recruitment, 6.5% of the
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employees reached the post through promotion and only 4% of the employees
reached the post through deputation.
7.3 Distribution of Independent Variables
1. It is evident from the descriptive statistics of the independent variables
under this study, 50.5 per cent of the employees had moderate level of
satisfaction, 22.75 per cent of the employees had high level of satisfaction
and 27.25 per cent of the employees had low level of satisfaction regarding
the Workers’ Participation in Management.
2. It was found that 54.75 per cent of the employees had moderate level of
satisfaction, 21.5 per cent had high level of satisfaction and 24.0 per cent
of the employees had low level of satisfaction regarding the
Communication Process.
3. It was found that 49.5 per cent of the employees had moderate level of
satisfaction, 24 per cent had high level of satisfaction and 226.5 per cent of
the employees had low level of satisfaction regarding the Welfare
Measures.
4. It was found that 33.0 per cent of the employees had moderate level of
satisfaction, 41.25 per cent had high level of satisfaction and 25.5 per cent
of the employees had low level of satisfaction regarding the Trade Union
Relations.
5. It was found that 46.25 per cent of the employees had moderate level of
satisfaction, 30 per cent had high level of satisfaction and 23.75 per cent of
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the employees had low level of satisfaction regarding Grievance
Mechanism.
6. The Student’s t-test for independent samples on two tailed significance for
the gender is not significant showing that there is no significant difference
in Workers’ Participation among the employees between the two group of sex (t
= 0.356, p>0.05). The two taileded significance for the gender is not
significant showing that there is no significant difference in Communication
Process among the employees between the two group of sex (t = 1.341,
p>0.05). The two taileded significance for the gender is not significant
showing that there is no significant difference in Welfare Measures among
the employees between the two group of sex (t = 1.130, p>0.05). The two
tailed significance for the gender is not significant showing that there is no
significant difference in Trade Union Relations among the employees
between the two group of sex (t = 0.079, p>0.05). The two tailed significance
for the gender is not significant showing that there is no significant
difference in Grievance Mechanism among the employees between the
two group of sex (t = 0.051, p>0.05).
7. The Student’s t-test for independent samples on two tailed significance for
the marital status is significant showing that there is no significant
difference in Workers’ Participation among the employees between the two
group of marital status (t = 2.500, p<0.05). The two tailed significance for
the marital status is not significant showing that there is significant difference
in Communication Process among the employees between the two group of
209
marital status (t = 4.153, p<0.05). The two tailed significance for the marital
status is not significant showing that there is significant difference in
Welfare Measures among the employees between the two group of marital
status (t = 2.723, p<0.05). The two tailed significance for the marital status
is significant showing that there is no significant difference in Grievance
Mechanism among the employees between the two group of marital status
(t = 1.809, p<0.05).
8. The Student’s t-test for independent samples on two tailed significance for
the place is not significant showing that there is no significant difference in
Workers’ Participation among the employees between the two group of
place (t = 0.356, p>0.05). The two tailed significance for the place is not
significant showing that there is a significant difference in Communication
Process among the employees between the two group of place (t = 1.341,
p>0.05). The two tailed significance for the place is significant showing that
there is no significant difference in Welfare Measures among the
employees between the two group of place (t = 1.130, p>0.01). The two
tailed significance for the place is no significant showing that there is a
significant difference in Trade Union Relations among the employees
between the two group of place (t = 0.079, p>0.01). The two tailed
significance for the place is no significant showing that there is a significant
difference in Grievance Mechanism among the employees between the
two group of place (t = 0.051, p>0.01).
210
9. The results of Fisher’s F-test (One way ANOVA) to test the significant
differences among the various groups of age with the various levels of the
dimensions of Industrial Relations shows that, the dimension Workers’
Participation at three different levels (Low, Average, High) is not
statistically significant across the age of employees (F=1.625, p>0.05); the
dimension Communication Process at three different levels (Low, Average,
High) is not statistically significant across the age of employees (F=1.089,
p>0.05); the dimension Welfare Measures at three different levels (Low,
Average, High) is not statistically significant across the age of employees
(F= 2.576, p>0.05); the dimension Trade Union Relations at three different
levels (Low, Average, High) is statistically significant across the age of
employees (F=5.457, p<0.05); the dimension Grievance Mechanism at
three different levels (Low, Average, High) is statistically significant across
the age of employees (F=40.625, p>0.01).
10. The results of Fisher’s F-test (One way ANOVA) to test the significant
differences among the various groups of Experience with the various levels
of the dimensions of Industrial Relations shows that, the dimension
Workers’ Participation at three different levels (Low, Average, High) is not
statistically significant across the age of employees (F=1.555, p>0.05); the
dimension Communication Process at three different levels (Low, Average,
High) is not statistically significant across the age of employees (F=0.007,
p>0.05); the dimension Welfare Measures at three different levels (Low,
Average, High) is statistically significant across the age of employees (F=
211
3.532, p<0.05); the dimension Trade Union Relations at three different
levels (Low, Average, High) is not statistically significant across the age of
employees (F=1.639, p>0.05); the dimension Grievance Mechanism at
three different levels (Low, Average, High) is statistically significant across
the age of employees (F=40.625, p>0.01).
11. The results of Fisher’s F-test (One way ANOVA) to test the significant
differences among the various groups of Income Levels with the various
levels of the dimensions of Industrial Relations shows that, the dimension
Workers’ Participation at three different levels (Low, Average, High) is not
statistically significant across the age of employees (F=0.745, p>0.05); the
dimension Communication Process at three different levels (Low, Average,
High) is not statistically significant across the age of employees (F=0.352,
p>0.05); the dimension Welfare Measures at three different levels (Low,
Average, High) is statistically significant across the age of employees (F=
4.321, p<0.05); the dimension Trade Union Relations at three different
levels (Low, Average, High) is statistically significant across the age of
employees (F=4.903, p<0.05); the dimension Grievance Mechanism at
three different levels (Low, Average, High) is not statistically significant
across the age of employees (F=0.625, p>0.01).
12. The results of chi-square test for testing the association between the
Workers’ Participation and the Communication Process shows that the two
dimensions are positively associated with (χ2=26.309, p<0.01).
212
13. The results of chi-square test for testing the association between the
Workers’ Participation and the Welfare Measures shows that the two
dimensions are positively associated with (χ2=31.809, p<0.01).
14. The results of chi-square test for testing the association between the
Workers’ Participation and the Trade Union Relations shows that the two
dimensions are positively associated with (χ2=30.259, p<0.01).
15. The results of chi-square test for testing the association between the
Workers’ Participation and the Grievance Mechanism shows that the two
dimensions are positively associated with (χ2=40.794, p<0.01).
16. The results of chi-square test for testing the association between the
Communication Process and the Welfare Measures shows that the two
dimensions are positively associated with (χ2=55.152, p<0.01).
17. The results of chi-square test for testing the association between the
Communication Process and the Trade Union Relations shows that the two
dimensions are positively associated with (χ2=43.962, p<0.01).
18. The results of chi-square test for testing the association between the
Communication Process and the Grievance Mechanism shows that the two
dimensions are positively associated with (χ2=33.610, p<0.01).
19. The results of chi-square test for testing the association between the
Welfare Measures and the Trade Union Relations shows that the two
dimensions are positively associated with (χ2=42.817, p<0.01).
213
20. The results of chi-square test for testing the association between the
Welfare Measures and the Grievance Mechanism shows that the two
dimensions are positively associated with (χ2=11.562, p<0.01).
21. The results of chi-square test for testing the association between the Trade
Union Relations and the Grievance Mechanism shows that the two
dimensions are positively associated with (χ2=13.057, p<0.01).
22. The Friedman test shows a significant difference between mean ranks
towards opinion on Workers’ Participation. Based on mean rank present
Improvement in the morale of employees (4.97) is most important factor in
Workers’ Participation.
23. The Friedman test shows a significant difference between mean ranks
towards opinion on Communication Process. Based on mean rank present
Accurate and Timely Information (7.56) is most important factor in
Communication Process.
24. The Friedman test shows a significant difference between mean ranks
towards opinion on Welfare Measures. Based on mean rank present
Availability of First Aid Box (11.29) is most important factor in Welfare
Measures.
25. The Friedman test shows a significant difference between mean ranks
towards opinion on Trade Union Relations. Based on mean rank present
Job Security by being a member (4.35) and Sharing of Negotiations with
the Management (4.35) are the most important factors in Trade Union
Relations.
214
26. The Friedman test shows a significant difference between mean ranks
towards opinion on Grievance Mechanism. Based on mean rank present
System of Recording the process (10.86) is most important factor in
Grievance Mechanism.
27. The result of the correlation analysis among the various dimensions of
Industrial Relations found that there is a significant and positive
relationship between:
Workers’ Participation and Communication (r = 0.167) Workers’ Participation and Welfare Measures (r = 0.341) Workers’ Participation and Trade Union Relations (r = 0.328) Workers’ Participation and Grievance Mechanism (r = 0.363) Communication and Welfare Measures (r = 0.365) Communication and Trade Union Relations (r = 0.268) Communication and Grievance Mechanism (r = 0.490) Welfare Measures and Trade Union Relations (r = 0.426) Welfare Measures and Grievance Mechanism (r = 0.486) Trade Union Relations and Grievance Mechanism (r = 0.536)
28. The regression results on demographic factors and Trade Union Relations
showed that the independent variables are Sex, Age group, Marital status,
Place, Educational Qualification, Designation, Experience and Monthly
income were positively significant to Trade Union Relations. An
examination of the t-values for the nine characteristics indicated that the
most important factor in Trade Union Relations is “Designation” followed
by “Marital status”. The organization should exert more attempt and
develop its relations with the Unions having these two characteristics.
215
7.4 SUGGESTIONS
1. Sugar industry is a labour intensive undertaking and it needs more
employees for the whole year. The management should take necessary steps
to acknowledge the worth of employees in order to retain the productive
employees.
2. The employees have been enjoying the customary benefits such as leave
facilities, leave travel allowances, housing facilities and uniforms. These
facilities should be continued. Any reduction in the name of economic
measures will demoralize the employees.
3. Working conditions refer to mental, physical and social well-being of the
workers in the industry. Improvement in productivity lies in better working
conditions, reduced absenteeism, minimized industrial unrest and improved
employee morale. Therefore, it is suggested that the company should ensure
total occupational safety and health administration.
4. Constant attention to the factors such as good working condition, plant
maintenance, work and quality control is essential. This must be meticulously
planned, organized and executed in every private sector sugar mills at various
levels and experience.
5. An integrated approach to manpower planning, education and training at all
levels viz., management, supervisory and employees will be necessary for
ensuring good industrial relations. Employees at all levels should be consulted
216
before major decisions have been taken. This will also promote harmonious
industrial relations.
6. There is no suitable mechanism for joint consultation on issues relating to
employee welfare. This makes the organizational climate poor. Therefore
steps should be taken to create some participative machinery such as works
committee and joint management council at all levels to promote workers
involvement in major decision making process.
7. Commitment and support of top management to workers participation in
management of functioning by providing time, space and adequate budget for
such participative program and extending appropriate recognition and positive
reinforcement can be established.
8. Promotional and publicity campaigns highlighting the achievement of
workers participation in management success should be spread throughout
the organization.
9. Special attention and personnel care shall be provided to solve the
grievance among employees.
10. Grievance redressal cell is an important place to solve the employees
problem promptly. The promotion of industrial peace is a key factor and
achievement or industrial harmony will depend upon its capacity to prevent
disputes to eliminate legitimate grievances. In turn, it will improve the
employees’ morale.
217
11. The supervisors should listen to complaints on their own merits. The
genuine complaints must be redressed quickly and completely. Mutual
consultation among the aggrieved parties among the employees will quicken
the redressel process.
12. Though industrial relations and human resource management practices
are found to be good, the importance of trade union is not much satisfactory.
Therefore, it is suggested that the right kind of trade union movement, pave
the way for sound and democratic functioning of trade unions and build an
atmosphere of mutual trust between employer and the trade unions.
13. For improving holistic human potential of the employees, organization
should setup health development cells. Health centres should be well
established imparting yoga, meditation and other allied programs like
nutritious working lunch at concessional rate and recreational facilities for
relaxation. Health is essentially an important component for greater
productivity. The higher the standard of health, the higher will be the
contribution for promotion of enterprise, growth and development of the
private sector sugar mills at Tamilnadu.
14. Various designated employees are satisfied with the statutory welfare
measures, still some of the non-statutory welfare measures like better
community hall, cooperative stores for their children and recreation facilities
can be improved.
15. The supervisors play a major role in building relationship between
management and employees, because, they are the immediate channel of
218
communication between both of them. Hence, smooth relationship should
exist between supervisors and employees.
16. Healthy feedback should be collected periodically from all the categories
of employees and managerial staff.
17. Mistakes on the part of the employees can be indicated personally without
hurting the mental stability of the workers.
18. Communication channels inside and outside should be simplified and
strengthened to buildup inter personal relationship between management and
labour.
219
7. 5 SCOPE FOR THE FURTHER RESEARCH
1. The study has focused on a public sector sugar mills alone. Further study
can be concentrated on cooperative and public sector sugar mills.
2. This study has given importance to the impact of only five dimensions of
Industrial Relations. Forth coming researches may include more dimensions.
3. The outcome of the study is specific because the researcher has used only
one industry, in the further research other industries in Tamilnadu can be
concentrated.
4. Even in each dimension, the factors for studying are limited. The future
studies may look for other factors and enhance the research.
220
7.6 CONCLUSION
Sugar mills play an important role in the economic development of
India. They also bring about radical social changes and influence on the lives
of the rural population. The public sector sugar mills have contributed to the
employment for the rural population directly and indirectly. In spite of their
valuable contribution, the mills have their own drawbacks. Perambalur Sugar
Mills Ltd is functioning at a poor level. There is reduction in the production as
well as number of workers. Hence it is suggested by the researcher that
Effective operation should be planned. As in any public sector organization,
the red tape makes the payment for the Farmers for their cane very late.
Proper relationship with them can be maintained only by paying properly. The
mill should strengthen the functioning of the personnel department under a
dedicated manager. The personnel manager should have a comprehensive
view of the whole situation prevailing in the sample units, such as monetary
benefits which include, wages, allowances, social security benefits, and non-
monetary benefits like better working conditions, workers participation in
management, grievance handling, trade union functions and statutory welfare
measures. The employees have been partially satisfied with the above said
labour welfare measures, still improvement has to be done in all the aspects
of labour welfare measures based on the current trends.
Apart from statutory measures, the personnel manager has to
address the non-statutory measures like cooperative society, community hall,
221
thrift and credit society, school facility for their children, recreation facility,
library, etc., in order to improve the morale of its employees. If the personnel
department fails to satisfy the various statutory and non-statutory welfare
measures, then it might lead to frustration among the working class and
culminate in industrial conflicts in various forms. It will lead to poor industrial
relations in the industry.
Poor industrial relations are harmful to all. It will reduce productivity
of labour, quantity and quality of work, labour turnover and absenteeism and
cost also rises. All theses will results in frustration and demoralization among
employees and management. The outcome of industrial conflict, not only
affect the employees and management involved, it also have an impact on the
entire industry, economy and society as well. In order to defeat the industrial
turmoil, the aforesaid recommendations are to be implemented in the industry
for retaining smooth industrial relations, which is of absolute importance to
social and economic development of India.
APPENDIX I
INTERVIEW SCHEDULE
Impact of Labour Welfare Measures on Industrial Relations – With Reference to Private Sector Sugar Mills, in Tamilnadu
Sir/madam,
This research work aims to examine the effectiveness of policies and practices of Personnel Department and also to identify the Industrial Relations in Private Sugar Mills in Tamilnadu.
Your frank response to the questions is solicited. The information gathered using this questionnaire will be kept confidential and used for research purpose only.
Dr. R. Mathivanan A. Xavier Amaladoss
Guide Researcher
I. DEMOGRAPHIC PROFILE
1. Sex : Male Female
2. Age :………..years
3. Marital Status : Married Unmarried
4. Place of birth : Rural Urban
5 Designation : Unskilled Skilled
Supervisor Middle Manager
Top level Manager
6. Education Professional: Graduate HSC/ PUC Matric/SSLC
7. Service Details : Experience in this concern ………years
Total experience ……. Years
8. Monthly Income (years) : < 5 5 – 10 > 10 :
II WORKERS PARTICIPATION MANAGEMENT Please indicate the extent to which you agree or disagree with the following statement related to workers participation opportunity given in your organization SA – Strongly Agree, A – Agree, N – Neutral, DA – Disagree, SDA – Strongly Disagree S. No. Statements SA A N DA SDA
1 Employee participation improves the morale of the employee which leads to better relations
2 Employee participation enhances the sense of give and take which contributes to better relations
3
Employee participation is the window for employees to present their problems in right perspective to management for redressal and that paves way for better relations
4 Employee participation ensures protection of the legitimate interest of subordinates thereby leading to better relations
5
Employee participation promotes the mutual negotiation and resolution of conflicts between management and employees, thus ensuring peaceful industrial relations
6 Employee participation in management makes the managers feel threatened as their subordinates are equal with them
7
Employee participation foster organizational image by making the employee and the management come closer, stay closer and act together
8 Employee participation is a recognition of employee capability to share management responsibility
9 Employee participation enhance employee commitment to the organization
III COMMUNICATION PROCESS
Please indicate the extent to which you agree or disagree with the following statements related to relationship between you and your supervisor
SA – Strongly Agree, A – Agree, N – Neutral, DA – Disagree, SDA – Strongly Disagree
S. No.
Statements SA A N DA SDA
1. Daily information from Supervisors is useful
2. Your ideas are passed to the top
3. Feel comfortable with supervisors
4. Information is given to all
5. Top-down communication is good
6. Information are accurate & timely
7. Communication increases relationship
IV WELFARE MEASURES
Please indicate the extent to which you satisfied or dissatisfied with statutory welfare measures provided in your organization
HS – Highly Satisfied, S – Satisfied, N – Neutral, DS – Dissatisfied, HSD – Highly Dissatisfied
S. No.
Facilities HS S N DS HDS
1 I am satisfied with canteen facility
2 I am satisfied with drinking water
3 I am satisfied with lunch room and rest room
4 I am satisfied with recreational facilities
5 I am satisfied with library
6 I am satisfied with wash basin, toilets and urinals
7 I am satisfied with supply of shoes and uniform
8 I am satisfied with sitting facilities
9 I am satisfied with gloves and eye
10 I am satisfied with cycle sheds
11 I am satisfied with masks, hard protective hats and glasses
12 I am satisfied with first aid box
13 I am satisfied with fire fighting equipments
14 I am satisfied with ambulance facility
15 I am satisfied with transport facility
16 I am satisfied with spittoons
17 I am satisfied with housing facility
V TRADE UNION Relations Please indicate the extent to which you agree or disagree with the following statements related to the role of trade union in your organization
SA – Strongly Agree, A – Agree, N – Neutral, DA – Disagree, SDA – Strongly Disagree
S. No.
Statements SA A N DA SDA
1 I am proud that, I am a member of the trade union
2 I am agree with the functioning of our union
3 I think that unions are politically motivated
4 Union fights for providing better labour welfare amenities
5 All union joint together for legitimate demands
6 Unions try to promote peace in the organization
7 My views are given importance by labour leaders
8 Union membership is a vital factor for job security
9 I will approve all the policies of the trade union
10 My union leaders consult with me before taking important decisions
11 My union leaders provide all the informationrelating to the negotiations with the management
12 My union leader conveys our grievances to the management regularly
13 Union maintains cordial relationship with the management
14 Healthy union activities are always encouraged
EMPLOYEE GRIEVANCE HANDLING
Please indicate the extent to which you agree or disagree with the following
statement related to grievance handling procedure in your organization
SA – Strongly Agree, A – Agree, N – Neutral, DA – Disagree, SDA – Strongly Disagree S. No. Statements SA A N DA SDA
1 Orientation on Grievance mechanism is given during induction
2 Regular monthly meetings are conducted to settle down the grievances
3 Workers’ feedback is accepted
4 Confidentiality is maintained
5 Suggestion box is located
6 Whistle blowers are protected
7 Workers are educated of the process
8 The system of recording is good
APPENDIX II
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