concept & approach to ir presentation for nipm mys 29-04-2011

7/30/2019 Concept & Approach to IR Presentation for NIPM Mys 29-04-2011

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Concept And Approach ToConcept And Approach To

Industrial RelationsIndustrial Relations

Organized by Department of Management Studies,Organized by Department of Management Studies, PoojaPooja BhagavatBhagavat MemorialMemorial

MahajanMahajan Post Graduate Center,Post Graduate Center, MysoreMysore

In Association withIn Association with

National Institute Of Personnel ManagementNational Institute Of Personnel Management

MysoreMysore ChapterChapter

UGC Refresher Course On Labour Legislation & Industrial Relations

Presentation By

Surendranath.APast Chairman, NIPM-Mysore Chapter

29thApril 2011


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Presentation By Surendranath.A On 29thApril, 2011

[email protected]

About The PresenterAbout The Presenter SurendranathSurendranath. A, is a seasoned HR Professional with 35 years of. A, is a seasoned HR Professional with 35 years of

experience in HR & IR in manufacturing industries plus 2 years sexperience in HR & IR in manufacturing industries plus 2 years s tint as HRtint as HRConsultant.Consultant.

M.A (Social Work) fromM.A (Social Work) from IndoreIndore School of Social Work (1974)School of Social Work (1974)

A Certified Management Trainer by All India Management AssociatiA Certified Management Trainer by All India Management Associationon

Conducted several workshops forConducted several workshops forMNCsMNCs to their supervisors and lineto their supervisors and linemanagers on People Skills, Coaching & Mentoring and Performancemanagers on People Skills, Coaching & Mentoring and PerformanceManagementManagement

Executed HR Projects toExecuted HR Projects to MNCsMNCs and the notable one was for Toyotaand the notable one was for ToyotassGlobal Labor Relations Department, Japan by developing India HRMGlobal Labor Relations Department, Japan by developing India HRMHandbook.Handbook.

Has hands on experience in integrating HR methods into IndustriaHas hands on experience in integrating HR methods into IndustriallRelations Management for todayRelations Management for todays need.s need.

Well experienced in dealing with Knowledge Employees in TodayWell experienced in dealing with Knowledge Employees in TodayssManufacturing Industries.Manufacturing Industries.

Thorough in Employment Laws Advisory ServicesThorough in Employment Laws Advisory Services

Experienced in setting up HR function for newly setup industriesExperienced in setting up HR function for newly setup industries and reand re--engineer HR function for the existing industries.engineer HR function for the existing industries.

Has passion to develop and train people in Behavioral, ManagemenHas passion to develop and train people in Behavioral, Management & HRt & HRskills.skills.

Lectured for Refresher Courses for Teaching Staff of UniversitieLectured for Refresher Courses for Teaching Staff of Universities on HRs on HRunder the aegis of AICTE and UGC.under the aegis of AICTE and UGC.


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About The PresenterAbout The PresenterMembership In Professional Bodies:Membership In Professional Bodies:

Life MemberLife Member-- National Institute of Personnel Management (NIPM)National Institute of Personnel Management (NIPM) Life MemberLife Member-- National HRD Network (NHRDN)National HRD Network (NHRDN)

Life MemberLife Member--Indian Industrial Relations Association (IIRA)Indian Industrial Relations Association (IIRA)

MemberMember--All India Management Association (AIMA)All India Management Association (AIMA)

Life MemberLife Member-- National Association for Professional Social WorkersNational Association for Professional Social Workers

of Indiaof India

Also held membership in International Industrial RelationsAlso held membership in International Industrial Relations

Association, International Sociological Association, Forum for AAssociation, International Sociological Association, Forum for Asiansian

ManagersManagers


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About The PresenterAbout The PresenterOrganizations Worked:Organizations Worked:

JKJK TyresTyres,, MysoreMysore (Earlier(EarlierVikrantVikrant TyresTyres)) TyreTyre

FalconFalcon TyresTyres,, MysoreMysore TyreTyre

ACCACC--VickersVickers--Babcock, Shahabad (NowBabcock, Shahabad (NowAlstomAlstom) Heavy) Heavy EnggEngg

BMMBMM IspatIspat,, HospetHospet Iron &Iron & SteelSteel

BILT,BILT, KamalapuramKamalapuram (Then AP(Then AP RayonsRayons) Rayon Pulp) Rayon Pulp

MahindraMahindra--NissanNissan--AllwynAllwyn,, ZahirabadZahirabad (Now M&M) Automotive(Now M&M) Automotive

RockwoolRockwool India,India, DigwalDigwal Mineral WoolMineral Wool

SumitraSumitra PharmaPharma,, DigwalDigwal (Now(Now PiramalPiramal PharmaPharma) Bulk Drugs) Bulk Drugs

NizamNizam Sugars,Sugars, MadhnagarMadhnagar SugarSugar

SangamSangamAlluminiumAlluminium,, HosurHosur ExtrusionExtrusion

Industry Type


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Content of PresentationContent of Presentation Historical BackgroundHistorical Background

Concept and Approach in IRConcept and Approach in IR

Stake Holders of IRStake Holders of IR Various Factors Influencing IRVarious Factors Influencing IR

Essentials of Sound IR PolicyEssentials of Sound IR Policy

IR StrategiesIR Strategies

Community of IRCommunity of IR Legal Framework of IRLegal Framework of IR

Proactive IRProactive IR Works CommitteeWorks Committee

MOUsMOUs & Settlements& Settlements

Collective BargainingCollective Bargaining Long Term SettlementsLong Term Settlements

HR Approach to IRHR Approach to IR


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Historical BackgroundHistorical Background


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Historical BackgroundHistorical Background

Industrial relations has its roots in theIndustrial relations has its roots in the

industrial revolution which created theindustrial revolution which created themodern employment relationship bymodern employment relationship by

spawning freespawning free laborlabormarkets and largemarkets and large--

scale industrial organizations withscale industrial organizations with

thousands of wage workers.thousands of wage workers.


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Industrial Relation in IndiaIndustrial Relation in India

Early British RuleEarly British Rule

1st World War to Pre1st World War to Pre--IndependenceIndependence

PeriodPeriod

Post independence period.Post independence period.


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Historical BackgroundHistorical BackgroundWith the massive economic and socialWith the massive economic and social

changes,changes, laborlaborproblems arose.problems arose.

Low wagesLow wages

Long working hoursLong working hours Monotonous and dangerous work, andMonotonous and dangerous work, and

Abusive supervisory practices Led to highAbusive supervisory practices Led to high

employee turnover, violent strikes, and theemployee turnover, violent strikes, and the

threat of social instability.threat of social instability.


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Historical BackgroundHistorical Background Industrial relations was formed with aIndustrial relations was formed with a

strong problemstrong problem--solving orientation thatsolving orientation thatrejected both the classical economistsrejected both the classical economists

laissez faire solutions tolaissez faire solutions to laborlaborproblemsproblems

and the Marxist solution of classand the Marxist solution of class

revolution. It is this approach thatrevolution. It is this approach that

underlies the various labour legislation.underlies the various labour legislation.


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Historical BackgroundHistorical Background-- WestWest Institutionally, industrial relations was foundedInstitutionally, industrial relations was founded

by John R. Commons when he created the firstby John R. Commons when he created the firstacademic industrial relations program at theacademic industrial relations program at the

University of Wisconsin in 1920.University of Wisconsin in 1920.

Early financial support for the field came fromEarly financial support for the field came fromJohn D. Rockefeller,John D. Rockefeller, JrJr. who supported. who supported

progressiveprogressive laborlabor--management relations in themanagement relations in the

aftermath of the bloody strike at a Rockefelleraftermath of the bloody strike at a Rockefeller--owned coal mine in Colorado.owned coal mine in Colorado.


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Historical BackgroundHistorical Background--WestWest In Britain, another progressive industrialist,In Britain, another progressive industrialist,

Montague Burton, endowed chairs inMontague Burton, endowed chairs inindustrial relations at Leeds, Cardiff andindustrial relations at Leeds, Cardiff and

Cambridge in 1930, and the discipline wasCambridge in 1930, and the discipline was

formalized in the 1950s with the formationformalized in the 1950s with the formation

of the Oxford School by Allan Flandersof the Oxford School by Allan Flanders

and Hugh Clegg.and Hugh Clegg.


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Presentation By Surendranath.A On 29thApril, [email protected]

Concept and Approach in IRConcept and Approach in IR


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What Is IR?What Is IR? Various interests involved in the labourVarious interests involved in the labour

management are accommodated, primarily formanagement are accommodated, primarily forthe purpose of regulating employmentthe purpose of regulating employmentrelationships.relationships.

Outlook of IR is essentially collectivist andOutlook of IR is essentially collectivist and

pluralist.pluralist. The relationships which arise at and out of theThe relationships which arise at and out of the

workplace (workplace (ieie, relationships between individual, relationships between individualworkersworkers

The relationships between them and theirThe relationships between them and theiremployeremployer


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What Is IR?What Is IR? The relationships employers and workers have with theThe relationships employers and workers have with the

organizations formed to promote and defend theirorganizations formed to promote and defend theirrespective interests, and the relations between thoserespective interests, and the relations between thoseorganizations, at all levels.organizations, at all levels.

Includes the processes through which theseIncludes the processes through which these

relationships are expressed such as, collectiverelationships are expressed such as, collectivebargaining; worker participation inbargaining; worker participation inmanagement/involvement in decisionmanagement/involvement in decision--making; andmaking; andgrievance and dispute settlementgrievance and dispute settlement

Involves the management of conflict between employers,Involves the management of conflict between employers,workers and trade unions, when it arises.workers and trade unions, when it arises.


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What Is IR?What Is IR? Influenced by the government and its agenciesInfluenced by the government and its agencies

through policies, laws, institutions andthrough policies, laws, institutions andprogrammes, and by the broader political, social,programmes, and by the broader political, social,economiceconomic,, technological and culturaltechnological and culturalcharacteristics of a place.characteristics of a place.

The policy/procedure, developed throughThe policy/procedure, developed throughbipartite consultative processes (bipartite consultative processes (ieie, between, betweenemployer and worker representatives, and byemployer and worker representatives, and by

them, individually, with government) andthem, individually, with government) andtripartite consultation and cooperation (involvingtripartite consultation and cooperation (involvinggovernment).government).


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IR OutcomesIR OutcomesA series of rules which apply to work like ,A series of rules which apply to work like ,

Setting down minimum (and other) wagesSetting down minimum (and other) wages Terms and conditions of employment for workersTerms and conditions of employment for workers

Occupational safety and health, social securityOccupational safety and health, social security(sometimes), and conditions applying to special(sometimes), and conditions applying to specialcategories of workers.categories of workers.

Defining the roles and responsibilities of theDefining the roles and responsibilities of theparties, individually and collectively (parties, individually and collectively (egeg, through, through

legislation; collective labour agreements;legislation; collective labour agreements;decisions by arbitrators and courts; anddecisions by arbitrators and courts; andenterprise work rules).enterprise work rules).


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Theoretical Perspectives ORTheoretical Perspectives OR

Frameworks Of IRFrameworks Of IR

UnitarismUnitarism

PluralistPluralist RadicalRadical

Each offers a particular perception ofEach offers a particular perception ofworkplace relations and will thereforeworkplace relations and will therefore

interpret such events as workplaceinterpret such events as workplaceconflict, the role of unions and jobconflict, the role of unions and jobregulation differently.regulation differently.


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Unitary PerspectiveUnitary Perspective InIn unitarismunitarism, the organization is perceived as an, the organization is perceived as an

integrated and harmonious whole with the ideal of "oneintegrated and harmonious whole with the ideal of "one

happy family", where management and other membershappy family", where management and other membersof the staff all share a common purpose, emphasizingof the staff all share a common purpose, emphasizingmutual cooperation. Furthermore,mutual cooperation. Furthermore, unitarismunitarism has ahas apaternalistic approach where it demands loyalty of allpaternalistic approach where it demands loyalty of all

employees, being predominantly managerial in itsemployees, being predominantly managerial in itsemphasis and application.emphasis and application.

Consequently, trade unions are deemed as unnecessaryConsequently, trade unions are deemed as unnecessarysince the loyalty between employees and organizationssince the loyalty between employees and organizationsare considered mutually exclusive, where there can't beare considered mutually exclusive, where there can't be

two sides of industry. Conflict is perceived as disruptivetwo sides of industry. Conflict is perceived as disruptiveand the pathological result of agitators, interpersonaland the pathological result of agitators, interpersonalfriction and communication breakdown.friction and communication breakdown.


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Pluralist PerspectivePluralist Perspective In pluralism the organization is perceived as being madeIn pluralism the organization is perceived as being made

up of powerful and divergent subup of powerful and divergent sub--groups, each with itsgroups, each with itsown legitimate loyalties and with their own set ofown legitimate loyalties and with their own set ofobjectives and leaders. In particular, the twoobjectives and leaders. In particular, the twopredominant subpredominant sub--groups in the pluralistic perspective aregroups in the pluralistic perspective arethe management and trade unions.the management and trade unions.

Consequently, the role of management would lean lessConsequently, the role of management would lean lesstowards enforcing and controlling and more towardtowards enforcing and controlling and more towardpersuasion and copersuasion and co--ordination. Trade unions are deemedordination. Trade unions are deemed

as legitimate representatives of employees, conflict isas legitimate representatives of employees, conflict isdealt by collective bargaining and is viewed notdealt by collective bargaining and is viewed notnecessarily as a bad thing and, if managed, could in factnecessarily as a bad thing and, if managed, could in factbe channelled towards evolution and positive change.be channelled towards evolution and positive change.


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Radical PerspectiveRadical Perspective This view of industrial relations looks at the nature of theThis view of industrial relations looks at the nature of the

capitalist society, where there is a fundamental divisioncapitalist society, where there is a fundamental divisionof interest between capital and labour, and seesof interest between capital and labour, and seesworkplace relations against this background. Thisworkplace relations against this background. Thisperspective sees inequalities of power and economicperspective sees inequalities of power and economicwealth as having their roots in the nature of the capitalistwealth as having their roots in the nature of the capitalist

economic system. Conflict is therefore seen as inevitableeconomic system. Conflict is therefore seen as inevitableand trade unions are a natural response of workers toand trade unions are a natural response of workers totheir exploitation by capital. Whilst there may be periodstheir exploitation by capital. Whilst there may be periodsof acquiescence, the radical view would be thatof acquiescence, the radical view would be that

institutions of joint regulation would enhance rather thaninstitutions of joint regulation would enhance rather thanlimit management's position as they presume thelimit management's position as they presume thecontinuation of capitalism rather than challenge it.continuation of capitalism rather than challenge it.


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Industrial Relations TodayIndustrial Relations Today By many accounts, industrial relations today is inBy many accounts, industrial relations today is in

crisis.crisis.

In academia, its traditional positions areIn academia, its traditional positions arethreatened on one side by the dominance ofthreatened on one side by the dominance ofmainstream economics and organizationalmainstream economics and organizational

behaviorbehavior, and on the other by postmodernism., and on the other by postmodernism. In policyIn policy--making circles, the industrial relationsmaking circles, the industrial relations

emphasis on institutional intervention is trumpedemphasis on institutional intervention is trumpedby aby a neoliberalneoliberal emphasis on the laissez faireemphasis on the laissez faire

promotion of free markets.promotion of free markets.


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Industrial Relations TodayIndustrial Relations Today In practice,In practice, laborlaborunions are declining and fewerunions are declining and fewer

companies have industrial relations functions.companies have industrial relations functions.

The number of academic programs in industrialThe number of academic programs in industrialrelations is therefore shrinking, and scholars arerelations is therefore shrinking, and scholars areleaving the field for other areas, especially humanleaving the field for other areas, especially human

resource management and organizationalresource management and organizational behaviorbehavior.. The importance of work, however, is stronger thanThe importance of work, however, is stronger than

ever, and the lessons of industrial relations remainever, and the lessons of industrial relations remain

vital. The challenge for industrial relations is to revital. The challenge for industrial relations is to re

--

establish these connections with the broaderestablish these connections with the broaderacademic, policy, and business worlds.academic, policy, and business worlds.


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IR and HRIR and HR

HR is essentially a bipartite process, notHR is essentially a bipartite process, not

involving the Government.involving the Government. The emphasis of IR is to achieve collectiveThe emphasis of IR is to achieve collective

outcomes at national and/or sector/industryoutcomes at national and/or sector/industrylevels which are then applied to each enterprise.levels which are then applied to each enterprise.

HR is focused directly at the level of theHR is focused directly at the level of theenterprise and seeks to align the interests ofenterprise and seeks to align the interests ofmanagers, individual workers and groups ofmanagers, individual workers and groups of

workers around certain mutually agreedworkers around certain mutually agreedcorporate objectives, in order to achievecorporate objectives, in order to achievecompetitive advantage in the market place.competitive advantage in the market place.


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HR challenge to IRHR challenge to IR It can operate to undermine the role of tradeIt can operate to undermine the role of trade

unions at enterprise level by emphasising theunions at enterprise level by emphasising theprimacy of the relationship between managersprimacy of the relationship between managers

and individual workers.and individual workers.

It is possible to harmonize IR and HR policiesIt is possible to harmonize IR and HR policiesand practices in ways which can strengthenand practices in ways which can strengthen

outcomes for bothoutcomes for both

This issue which will be discussed again later inThis issue which will be discussed again later inthe presentation.the presentation.


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Human RelationsHuman Relations The term human relations refers to the wholeThe term human relations refers to the whole

field of relationship that exists because of thefield of relationship that exists because of thenecessary collaboration of men and women innecessary collaboration of men and women inthe employment process of modern industry.the employment process of modern industry. ItItis that part of management which is concernedis that part of management which is concerned

with the management of enterprisewith the management of enterprise --whetherwhethermachine operator, skilled worker or manager. Itmachine operator, skilled worker or manager. Itdeals with either the relationship between thedeals with either the relationship between the

state and employers and workers organisationstate and employers and workers organisationor the relation between the occupationalor the relation between the occupationalorganisation themselves.organisation themselves.


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Stake Holders of IRStake Holders of IR


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Stake Holders of IRStake Holders of IR Promoters Including InvestorsPromoters Including Investors

ManagementManagement

EmployeesEmployees

Workers and Their UnionsWorkers and Their Unions CustomersCustomers

SocietySociety GovernmentGovernment


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Various Factors Influencing IRVarious Factors Influencing IR


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Various Factors Influencing IRVarious Factors Influencing IR Government PoliciesGovernment Policies

LabourLabourLegislationLegislation

Market ConditionsMarket Conditions

Employer AttitudeEmployer Attitude EmployeesEmployeesAttitudeAttitude

Trade Union AttitudeTrade Union Attitude


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Essentials of Sound IR PolicyEssentials of Sound IR Policy


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Sound Industrial Relations SystemSound Industrial Relations System A sound industrial relations system is not capable ofA sound industrial relations system is not capable of

precise definition.precise definition.

Every industrial relations system has to take intoEvery industrial relations system has to take intoaccount, and reflect, cultural factors. Systems cannotaccount, and reflect, cultural factors. Systems cannotchange culture, but only behaviour within a culturalchange culture, but only behaviour within a culturalenvironment.environment.

As such, one can only describe some of the elementsAs such, one can only describe some of the elementswhich have generally come to be recognized aswhich have generally come to be recognized ascontributing to a sound industrial relations system. Thesecontributing to a sound industrial relations system. These

elements would constitute a sort of 'checkelements would constitute a sort of 'check--list'.list'. A relatively sound industrial relations system will exhibitA relatively sound industrial relations system will exhibit

some of these elements.some of these elements.


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Presentation By Surendranath.A On 29th

April, [email protected]

Sound Industrial Relations SystemSound Industrial Relations System A sound industrial relations system is one inA sound industrial relations system is one in

which relationships between management andwhich relationships between management andemployees (and their representatives) on theemployees (and their representatives) on theone hand, and between them and the State onone hand, and between them and the State onthe other, are more harmonious and cooperativethe other, are more harmonious and cooperative

thanthan conflictualconflictual and creates an environmentand creates an environmentconducive to economic efficiency and theconducive to economic efficiency and themotivation, productivity and development of themotivation, productivity and development of the

employee and generates employee loyalty andemployee and generates employee loyalty andmutual trust.mutual trust.


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Sound Industrial Relations SystemSound Industrial Relations System Industrial relations itself may again be describedIndustrial relations itself may again be described

as being concerned with the rules, processesas being concerned with the rules, processesand mechanisms (and the results emanatingand mechanisms (and the results emanatingtherefromtherefrom) through which the relationship) through which the relationshipbetween employers and employees and theirbetween employers and employees and their

respective representatives, as well as betweenrespective representatives, as well as betweenthem on the one hand and the State and itsthem on the one hand and the State and itsagencies on the other, is regulated.agencies on the other, is regulated.


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Sound Industrial Relations SystemSound Industrial Relations System Industrial relations seek to balance theIndustrial relations seek to balance the

economic efficiency of organizations witheconomic efficiency of organizations withequity, justice and the development of theequity, justice and the development of theindividual, to find ways of avoiding,individual, to find ways of avoiding,

minimizing and resolving disputes andminimizing and resolving disputes andconflict and to promote harmoniousconflict and to promote harmoniousrelations between and among the actorsrelations between and among the actors

directly involved, and society as a whole.directly involved, and society as a whole.


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Sound Industrial Relations SystemSound Industrial Relations System The rules, processes and mechanisms ofThe rules, processes and mechanisms of

an industrial relations system are found inan industrial relations system are found insources such as laws (legislative, judicial,sources such as laws (legislative, judicial,

quasiquasi--judicial), practices, customs,judicial), practices, customs,

agreements and arrangements arrived atagreements and arrangements arrived atthrough a bipartite or tripartite process orthrough a bipartite or tripartite process orthrough prescription by the State.through prescription by the State.


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Sound Industrial Relations SystemSound Industrial Relations System Industrial relations operates at differentIndustrial relations operates at different

levelslevels -- at the national level, at the level ofat the national level, at the level ofthe industry and at the enterprise level.the industry and at the enterprise level.

The elements which reflect a soundThe elements which reflect a sound

industrial relations system at all theseindustrial relations system at all theselevels are not necessarily the same.levels are not necessarily the same.


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National Level Industrial RelationsNational Level Industrial RelationsAt the national level industrial relationsAt the national level industrial relations

operates so as to formulate labouroperates so as to formulate labourrelations policy. In market economies thisrelations policy. In market economies this

is usually done through a tripartite processis usually done through a tripartite process

involving government, employers andinvolving government, employers andworkers and their representativeworkers and their representative

organizations.organizations.


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Industry Level Industrial RelationsIndustry Level Industrial Relations At the industry level industrial relations oftenAt the industry level industrial relations often

takes the form of collective bargaining betweentakes the form of collective bargaining betweenemployers' organizations and unions. Thisemployers' organizations and unions. Thisprocess may result in determining wages andprocess may result in determining wages andother terms and conditions of employment for another terms and conditions of employment for an

industry or sector.industry or sector. It may also result in arrangements on issuesIt may also result in arrangements on issues

which are of mutual concern such as training,which are of mutual concern such as training,

ways of avoiding or settling disputes, etc.ways of avoiding or settling disputes, etc.


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Enterprise Level Industrial RelationsEnterprise Level Industrial Relations

At the enterprise level the relationshipAt the enterprise level the relationship

between employers and workers is morebetween employers and workers is moredirect, but the interests of workers may bedirect, but the interests of workers may berepresented by unions. Employers'represented by unions. Employers'

organizations, however, are not usuallyorganizations, however, are not usuallyinvolved at the enterprise level ininvolved at the enterprise level inrepresenting the employersrepresenting the employers interests withinterests with

workers or their union, but this does notworkers or their union, but this does notmean that they do not have an importantmean that they do not have an importantpromotional role at this level.promotional role at this level.


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Sound Industrial RelationsSound Industrial Relations Sound industrial relations at the national levelSound industrial relations at the national level

build trust and confidence betweenbuild trust and confidence betweenrepresentatives of workers and employers.representatives of workers and employers.

Sound relations at the enterprise level buildsSound relations at the enterprise level buildstrust and confidence between workers andtrust and confidence between workers and

management, which is the point at which themanagement, which is the point at which thesystem must ultimately be effective.system must ultimately be effective.

Effectiveness at one level would naturally haveEffectiveness at one level would naturally have

some impact on the other.some impact on the other.


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IR StrategyIR Strategy


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IR StrategyIR Strategy Attitudinal and behavioural changesAttitudinal and behavioural changes

Modern labour polices, legislation andModern labour polices, legislation and

institutions Employers should be seekinginstitutions Employers should be seeking"modern" labour policies, legislation and"modern" labour policies, legislation andinstitutions which encourage industrial harmonyinstitutions which encourage industrial harmony(by emphasising prevention not resolution of(by emphasising prevention not resolution of

conflict).conflict). Compensation systems linked to enterpriseCompensation systems linked to enterprise

performanceperformance

A skilled and adaptable workforceA skilled and adaptable workforce

Flexible forms of work organization andFlexible forms of work organization andmanagementmanagement

CulturallyCulturally--sensitive management strategiessensitive management strategies

Implementing a reform strategyImplementing a reform strategy


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Diffusion Of IR PracticesDiffusion Of IR Practices

Whether such IR/HRM practices are adopted, on aWhether such IR/HRM practices are adopted, on a

widespread basis, will depend on three considerations:widespread basis, will depend on three considerations: First, the impact ofFirst, the impact ofMNC'sMNC's (through international(through international

benchmarking and diffusion of best practice to localbenchmarking and diffusion of best practice to localsuppliers and subcontractors);suppliers and subcontractors);

Second, the extent to which individual domesticSecond, the extent to which individual domesticenterprises and governments learn "by doing" (andenterprises and governments learn "by doing" (anddiffuse lessons learned within the local economy) and,diffuse lessons learned within the local economy) and,

Thirdly, whether collective bargaining (particularly, atThirdly, whether collective bargaining (particularly, at

industry level) can produce good examples of negotiatedindustry level) can produce good examples of negotiatedagreements which address the range of issues ofagreements which address the range of issues ofconcern in developing more flexible workplaces, andconcern in developing more flexible workplaces, andprovide "blueprints" which many local enterprises mightprovide "blueprints" which many local enterprises mightseek to follow.seek to follow.


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WorkersWorkers & Unions& Unions Role In IRRole In IR A form of unionism which focuses on working withA form of unionism which focuses on working with

employers (and their organizations) in implementingemployers (and their organizations) in implementingstrategies to improve enterprisestrategies to improve enterprise

competitiveness and the quality of work throughcompetitiveness and the quality of work throughimprovements in work organization, labour managementimprovements in work organization, labour management

Proactive and strategic in approach Relations and SkillsProactive and strategic in approach Relations and Skills

developmentdevelopment AvoidAvoid restrictive in nature (restrictive in nature (egeg, seeking, by various, seeking, by various

means, to limit change).means, to limit change).

The development of effective unionism (and, indeed, ofThe development of effective unionism (and, indeed, of

trade union movements everywhere) is contingent on thetrade union movements everywhere) is contingent on therecognition and application of the rights of freedom ofrecognition and application of the rights of freedom ofassociation, to organize and to bargain collectively.association, to organize and to bargain collectively.

Impact of Globalization on Industrial RelationsImpact of Globalization on Industrial Relations


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EMPLOYMENT RELATIONS (IR/HR)

[WORK ORGANIZATION, SKILL DEVELOPMENT

COMPENSATION, CROSS-CULTURAL MANAGEMENT]

BUSINESS AND

EMPLOYMENT

STRATEGIES

OF MNCs

STRATEGIES AND

STRUCTURES OF

TRADE UNIONS

AND EMPLOYERS

ORGANIZATIONS

NATIONAL POLICIES AND STRATEGIES ON ECONOMIC

DEVELOPMENT AND INDUSTRIAL RELATIONS

BUSINESS AND

EMPLOYMENT

STRATEGIES

OF DOMESTIC

COMPANIES

ENTERPRISE LEVEL

INDUSTRY LEVEL NORMS ABOUT EMPLOYMENT PRACTICE

Impact of Globalization on Industrial RelationsImpact of Globalization on Industrial Relations


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Community Of Industrial RelationsCommunity Of Industrial Relations International Industrial RelationsInternational Industrial Relations

Association, GenevaAssociation, Geneva--Sponsored by ILOSponsored by ILO International Sociological AssociationInternational Sociological Association

National Institute of PersonnelNational Institute of Personnel

ManagementManagement

Indian Industrial Relations AssociationIndian Industrial Relations Association


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Constitutional Frame WorkConstitutional Frame WorkOf Industrial RelationsOf Industrial Relations


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Directive Principles of State PolicyDirective Principles of State Policy

Equal Pay for Equal Work for men and womenEqual Pay for Equal Work for men and women--ArticleArticle

39(d)39(d)

Health and Safety of workersHealth and Safety of workersArticle 39(c)Article 39(c)

Right to WorkRight to Work--Article 41Article 41

Just and Humane Conditions of Work and for MaternityJust and Humane Conditions of Work and for Maternity

ReliefRelief--Article 42Article 42

Living Wage and Decent Standard of Life ofLiving Wage and Decent Standard of Life oflabourerslabourers--

Article 43Article 43

Participation of Workers in the Management ofParticipation of Workers in the Management ofundertakings or industrial establishments by suitableundertakings or industrial establishments by suitable

legislation or otherwiselegislation or otherwise--AritcleAritcle 43A (4243A (42ndndAmendment)Amendment)


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Legal Framework of IRLegal Framework of IR


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LABOUR LAWS & IRLABOUR LAWS & IR Industrial Disputes Act 1947Industrial Disputes Act 1947

Industrial Employment (Standing Orders) ActIndustrial Employment (Standing Orders) Act19461946

Trade Unions Act 1926Trade Unions Act 1926

Factories Act 1948Factories Act 1948

ContractContract LabourLabour(Regulation And Abolition) Act(Regulation And Abolition) Act19701970

Payment of Wages Act 1936Payment of Wages Act 1936

Equal Remuneration ActEqual Remuneration Act


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LABOUR LAWS & IRLABOUR LAWS & IR Payment Of Bonus Act 1965Payment Of Bonus Act 1965

Payment of Gratuity Act 1972Payment of Gratuity Act 1972 EmployeesEmployees Compensation Act 1923Compensation Act 1923

Karnataka Industrial EstablishmentsKarnataka Industrial Establishments(National And Festival Holidays Act) 1963(National And Festival Holidays Act) 1963


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INDUSTRIAL DISPUTES ACTINDUSTRIAL DISPUTES ACT Defines Who Is ADefines Who Is A WorkmanWorkmanAnd What IsAnd What Is

anan Industrial DisputeIndustrial Dispute DistinguishesDistinguishes Public Utility ServicePublic Utility Service andand

Non Public Utility ServiceNon Public Utility Service

Specifies for Authorities Under The ActSpecifies for Authorities Under The Act

Stipulates Procedure for Change ofStipulates Procedure for Change of

Service ConditionsService Conditions Provides For Dispute ResolutionProvides For Dispute Resolution

MachineryMachinery


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INDUSTRIAL DISPUTES ACTINDUSTRIAL DISPUTES ACT Provides For Permission To ChangeProvides For Permission To Change

Conditions Of Service Under CertainConditions Of Service Under CertainCircumstances DuringCircumstances During PendencyPendency OfOf

Proceedings Before Specified AuthoritiesProceedings Before Specified Authorities

EmpowersEmpowers LabourLabourCourts And TribunalsCourts And Tribunals

To Interfere with the Punishment AwardedTo Interfere with the Punishment Awarded

Deals WithDeals With StrikesStrikesAndAnd LockoutsLockouts RegulatesRegulates LayLay--OffsOffsAndAnd ClosuresClosures


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What is an Industrial Dispute?What is an Industrial Dispute?Sec2(k)industrial disputemeans any

dispute or difference between em-ployersand employers, or between employersand workmen,or between workmen and

workmen, which is connected with theemployment or non-employmentor theterms of employmentor with theconditions of labour, of any person;

Conditions Of Service For Change Of WhichConditions Of Service For Change Of Which


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Conditions Of Service For Change Of WhichConditions Of Service For Change Of Which

Notice Is To Be GivenNotice Is To Be Given-- 44thth

Schedule, ID ActSchedule, ID Act 1. Wages, including the period and mode of payment;1. Wages, including the period and mode of payment;

2. Contribution paid, or payable, by the employer to any provide2. Contribution paid, or payable, by the employer to any provident fund or pension fund or for the benefitnt fund or pension fund or for the benefitof the workmen under any law for the time being in force;of the workmen under any law for the time being in force;

3. Compensatory and other allowances;3. Compensatory and other allowances;

4. Hours of work and rest intervals;4. Hours of work and rest intervals;

5. Leave with wages and holidays;5. Leave with wages and holidays;

6. Starting, alternating or discontinuance of shift working othe6. Starting, alternating or discontinuance of shift working otherwise than in accordance with standingrwise than in accordance with standing

orders;orders;

7. Classification by grades;7. Classification by grades;

8. Withdrawal of any customary concession or privilege or change8. Withdrawal of any customary concession or privilege or change in usage;in usage;

9. Introduction of new rules of discipline, or alteration of exi9. Introduction of new rules of discipline, or alteration of existing rules except insofar as they aresting rules except insofar as they areprovided in standing orders;provided in standing orders;

10. Rationalization, standardization or improvement of plant or10. Rationalization, standardization or improvement of plant ortechnique which is likely to lead totechnique which is likely to lead toretrenchment of workmen;retrenchment of workmen;

11. Any increases or reduction (other than casual) in the number11. Any increases or reduction (other than casual) in the numberof persons employed or to be employedof persons employed or to be employedin any occupation or process or department or shift not occasionin any occupation or process or department or shift not occasioned by circumstances over which theed by circumstances over which theemployer has no control.employer has no control.


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Unfair Labour PracticesUnfair Labour Practices

5th Schedule ID Act5th Schedule ID Act


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5. To discharge or dismiss workmen5. To discharge or dismiss workmen --

(a) by way of victimisation;(a) by way of victimisation;

(b) not in good faith, but in the colourable exercise of the emp(b) not in good faith, but in the colourable exercise of the employer's rights;loyer's rights;

(c) by falsely implicating a workman in a criminal case on false(c) by falsely implicating a workman in a criminal case on false evidence or on concocted evidence;evidence or on concocted evidence;

(d) for patently false reasons;(d) for patently false reasons;

(e) on untrue or trumpet up allegations of absence without leave(e) on untrue or trumpet up allegations of absence without leave;;

(f) in utter disregard of the principles of natural justice in t(f) in utter disregard of the principles of natural justice in the conduct of domestic enquiry or with unduehe conduct of domestic enquiry or with unduehaste;haste;

(g) for misconduct of a minor or technical character, without ha(g) for misconduct of a minor or technical character, without having any regard to the nature of theving any regard to the nature of theparticular misconduct or the past record of service of the workmparticular misconduct or the past record of service of the workman, thereby leading to a disproportionatean, thereby leading to a disproportionatepunishment.punishment.

6. To abolish the work of a regular nature being done by workmen6. To abolish the work of a regular nature being done by workmen, and to give such work to contractors, and to give such work to contractorsas a measure of breaking a strike.as a measure of breaking a strike.

7. To transfer a workman7. To transfer a workman malamala fide from one place to another, under the guise of following mafide from one place to another, under the guise of following managementnagementpolicy.policy.

8. To insist upon individual workmen, who are on a legal strike8. To insist upon individual workmen, who are on a legal strike to sign a good conduct bond, as ato sign a good conduct bond, as aprecondition to allowing them to resume work.precondition to allowing them to resume work.

9. To show9. To show favouritisfavouritis or partiality to one set of workers regardless of merit.or partiality to one set of workers regardless of merit.

5th Schedule, ID Act5th Schedule, ID Act


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Matters Within The Jurisdiction Of Labour CourtsMatters Within The Jurisdiction Of Labour Courts


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22ndnd

Schedule, ID ActSchedule, ID Act

1. The propriety or legality of an order passed by an employer u1. The propriety or legality of an order passed by an employer under thender the

standing orders;standing orders;

2. The application and interpretation of standing orders;2. The application and interpretation of standing orders;

3. Discharge or dismissal of workmen including reinstatement of,3. Discharge or dismissal of workmen including reinstatement of, or grant ofor grant of

relief to, workmen wrongfully dismissed;relief to, workmen wrongfully dismissed;

4. Withdrawal of any customary concession or privilege;4. Withdrawal of any customary concession or privilege;

5. Illegality or otherwise of a strike or lock5. Illegality or otherwise of a strike or lock--out; andout; and

6. All matters other than those specified in the Third Schedule.6. All matters other than those specified in the Third Schedule.

Matters Within The Jurisdiction OfMatters Within The Jurisdiction Of

Industrial TribunalsIndustrial Tribunals


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Industrial TribunalsIndustrial Tribunals

-- 33rdrd Schedule, ID ActSchedule, ID Act 1. Wages, including the period and mode of payment;1. Wages, including the period and mode of payment;

2. Compensatory and other allowances;2. Compensatory and other allowances;

3. Hours of work and rest intervals;3. Hours of work and rest intervals;

4. Leave with wages and holidays;4. Leave with wages and holidays;

5. Bonus, profit sharing, provident fund and gratuity;5. Bonus, profit sharing, provident fund and gratuity;

6. Shift working otherwise than in accordance with standing orde6. Shift working otherwise than in accordance with standing orders;rs;

7. Classification by grades;7. Classification by grades;

8. Rules of discipline;8. Rules of discipline;

9. Rationalisation;9. Rationalisation;

10. Retrenchment of workmen and closure of establishment; and10. Retrenchment of workmen and closure of establishment; and

11. Any other matter that may be prescribed.11. Any other matter that may be prescribed.


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Works Committee


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Works CommitteeWorks Committee

ID Act; Sec 3 (1) In the case of any industrialID Act; Sec 3 (1) In the case of any industrial

establishment in which one hundred or moreestablishment in which one hundred or moreworkmen are employed or have been employedworkmen are employed or have been employedon any day in the preceding twelve months theon any day in the preceding twelve months theappropriate Government may by general orappropriate Government may by general orspecial order require the employer to constitutespecial order require the employer to constitutein the prescribed manner a Works Committeein the prescribed manner a Works Committeeconsisting of representatives of employers andconsisting of representatives of employers andworkmen engaged in the establishment soworkmen engaged in the establishment sohowever that the number of representatives ofhowever that the number of representatives ofworkmen on the Committee shall not be lessworkmen on the Committee shall not be lessthan the number of representatives of thethan the number of representatives of the

employer.employer.

Works Committee


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The representatives of the workmen shallThe representatives of the workmen shall

be chosen in the prescribed manner frombe chosen in the prescribed manner fromamong the workmen engaged in theamong the workmen engaged in the

establishment and in consultation withestablishment and in consultation with

their trade union, if any, registered undertheir trade union, if any, registered underthe Indian Trade Unions Act, 1926 (16 ofthe Indian Trade Unions Act, 1926 (16 of

1926).1926).



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ID Act; Sec 3 (2) It shall be the duty of theID Act; Sec 3 (2) It shall be the duty of the

Works Committee to Promote measuresWorks Committee to Promote measuresfor securing and preserving amity andfor securing and preserving amity and

good relations between the employer andgood relations between the employer and

workmen and, to that end, to commentworkmen and, to that end, to commentupon matters of their common interest orupon matters of their common interest or

concern andconcern andendeavorendeavorto compose anyto compose any

material difference of opinion in respect ofmaterial difference of opinion in respect of

such matters.such matters.



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Concerned with the problems of dayConcerned with the problems of day--toto--dayday

workingworking

Not intended to supplant or supersede the unionNot intended to supplant or supersede the union

for the purpose of collective bargainingfor the purpose of collective bargaining

Not entitled to consider substantial changes inNot entitled to consider substantial changes inthe conditions of servicethe conditions of service

Task is to reduce fiction that might ariseTask is to reduce fiction that might arise

between workers and management in the daybetween workers and management in the day--toto--day workingday working


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SettlementsSettlements

What is a Settlement?What is a Settlement?


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What is a Settlement?What is a Settlement?

Section 2 (p) of ID Act: "settlement" means aSection 2 (p) of ID Act: "settlement" means asettlement arrived at in the course of conciliationsettlement arrived at in the course of conciliation

proceeding and includes a written agreementproceeding and includes a written agreementbetween the employer and workmen arrived atbetween the employer and workmen arrived atotherwise than in the course of conciliationotherwise than in the course of conciliation

proceeding where such agreement has beenproceeding where such agreement has beensigned by the parties thereto in such manner assigned by the parties thereto in such manner asmay be prescribed and a copy thereof has beenmay be prescribed and a copy thereof has beensent to an officer authorised in this behalf by thesent to an officer authorised in this behalf by the

appropriate Government and the conciliationappropriate Government and the conciliationofficer;officer;

PERSONS ON WHOM SETTLEMENTSPERSONS ON WHOM SETTLEMENTS

AND AWARDS ARE BINDINGAND AWARDS ARE BINDING


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Section 18 of ID Act, 1948Section 18 of ID Act, 1948--

(1) A settlement arrived at by agreement between the employer an(1) A settlement arrived at by agreement between the employer anddworkman otherwise than in the course of conciliation proceedingworkman otherwise than in the course of conciliation proceeding

shall be binding on the parties to the agreement.shall be binding on the parties to the agreement.

(3) A settlement arrived at in the course of conciliation procee(3) A settlement arrived at in the course of conciliation proceedingsdingsunder this Act or an arbitration award in a case where a notificunder this Act or an arbitration award in a case where a notificationationhas been issued under subhas been issued under sub--section (3A) of section 10A or an awardsection (3A) of section 10A or an award

of a Labour Court, Tribunal or National Tribunal which has becomof a Labour Court, Tribunal or National Tribunal which has becomeeenforceable shall be binding onenforceable shall be binding on -- (a) all parties to the industrial(a) all parties to the industrialdispute;dispute;

(d) where a party referred to in clause (a) or clause (b) is com(d) where a party referred to in clause (a) or clause (b) is composedposedof workmen, all persons who were employed in the establishment oof workmen, all persons who were employed in the establishment orrpart of the establishment, as the case may be, to which the disppart of the establishment, as the case may be, to which the disputeuterelates on the date of the dispute and all persons who subsequenrelates on the date of the dispute and all persons who subsequentlytlybecome employed in that establishment or part.become employed in that establishment or part.

PERIOD OF OPERATION OFPERIOD OF OPERATION OF

SETTLEMENTS AND AWARDSSETTLEMENTS AND AWARDS


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Section 19 of ID Act, 1948Section 19 of ID Act, 1948--

(1) A settlement shall come into operation on such date(1) A settlement shall come into operation on such dateas is agreed upon by the parties to the dispute, and if noas is agreed upon by the parties to the dispute, and if no

date is agreed upon, on the date on which thedate is agreed upon, on the date on which thememorandum of the settlement is signed by the partiesmemorandum of the settlement is signed by the partiesto the dispute.to the dispute.

(2) Such settlement shall be binding for such period as is(2) Such settlement shall be binding for such period as isagreed upon by the parties, and if no such period isagreed upon by the parties, and if no such period isagreed upon, for a period of six months from the date onagreed upon, for a period of six months from the date onwhich the memorandum of settlement is signed by thewhich the memorandum of settlement is signed by theparties to the dispute, and shall continue to be bindingparties to the dispute, and shall continue to be binding

on the parties after the expiry of the period aforesaid,on the parties after the expiry of the period aforesaid,until the expiry of two months from the date on which auntil the expiry of two months from the date on which anotice in writing of an intention to terminate thenotice in writing of an intention to terminate thesettlement is given by one of the parties to the othersettlement is given by one of the parties to the other

party or parties to the settlement.party or parties to the settlement.


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Essential Features Of Collective BargainingEssential Features Of Collective Bargaining


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It is not equivalent to collective agreementsIt is not equivalent to collective agreementsbecause collective bargaining refers to thebecause collective bargaining refers to the

process or means, and collective agreements toprocess or means, and collective agreements tothe possible result, of bargaining. There maythe possible result, of bargaining. There maytherefore be collective bargaining without atherefore be collective bargaining without acollective agreement.collective agreement.

It is a method used by trade unions to improveIt is a method used by trade unions to improvethe terms and conditions of employment of theirthe terms and conditions of employment of theirmembers, often on the basis of equalizing themmembers, often on the basis of equalizing themacross industries.across industries.

It is a method which restores the unequalIt is a method which restores the unequalbargaining position as between employer andbargaining position as between employer andemployee.employee.



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g g

Where it leads to an agreement it modifies, rather thanWhere it leads to an agreement it modifies, rather thanreplaces, the individual contract of employment,replaces, the individual contract of employment,

because it does not create the employerbecause it does not create the employer--employeeemployeerelationship.relationship.

The process is bipartite, but in some developingThe process is bipartite, but in some developingcountries the State plays a role in the form of acountries the State plays a role in the form of a

conciliator where disagreements occur, or mayconciliator where disagreements occur, or mayintervene more directly (e.g. by setting wageintervene more directly (e.g. by setting wageguidelines) where collective bargaining impinges onguidelines) where collective bargaining impinges ongovernment policy.government policy.

Employers have in the past used collective bargainingEmployers have in the past used collective bargainingto reduce competitive edge based on labour costs.to reduce competitive edge based on labour costs.



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Support of the labour administrationSupport of the labour administration

authoritiesauthorities Both parties to bargain in good faithBoth parties to bargain in good faith

Well Informed managers and workersWell Informed managers and workers

PrePre--conditions for Successfulconditions for Successful


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Collective BargainingCollective BargainingA pluralistic outlookA pluralistic outlook

-- in a pluralist society collective bargaining is recognized as ain a pluralist society collective bargaining is recognized as a fundamental toolfundamental toolthrough which stability is maintained, while freedom of associatthrough which stability is maintained, while freedom of association is the sineion is the sinequa non without which the interest groups in a society would bequa non without which the interest groups in a society would be unable tounable tofunction effectively. There can therefore be no meaningful collefunction effectively. There can therefore be no meaningful collective bargainingctive bargainingwithout freedom of association accorded to both employers and wowithout freedom of association accorded to both employers and workers.rkers.

Existence of freedom of associationExistence of freedom of association

-- does not necessarily mean that there would automatically be recodoes not necessarily mean that there would automatically be recognition ofgnition ofunions for bargaining purposes. Especially in systems where therunions for bargaining purposes. Especially in systems where there is ae is amultiplicity of trade unions, there is a need for predeterminedmultiplicity of trade unions, there is a need for predeterminedobjective criteriaobjective criteriaoperative within the industrial relations system to decide whenoperative within the industrial relations system to decide when and how a unionand how a unionshould be recognized for collective bargaining purposes.should be recognized for collective bargaining purposes.

HR Approach To IRHR Approach To IR


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pppp

ProactiveProactive

Caring for employeesCaring for employees

Effective CommunicationEffective Communication Employee Involvement ProgramsEmployee Involvement Programs

Trust DevelopmentTrust Development

Developing AttitudesDeveloping Attitudes

Training for Skill DevelopmentTraining for Skill Development Enhancing CompetenciesEnhancing Competencies

Programs on Family and Work Life BalancePrograms on Family and Work Life Balance

Health & SafetyHealth & Safety Career Growth PlansCareer Growth Plans

Compensation & BenefitsCompensation & Benefits


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concept & approach to ir presentation for nipm mys 29-04-2011

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