Professional Documents
Culture Documents
27767923
27767923
27767923
A Case Study
Author(s): Mamta Panda
Source: Indian Journal of Industrial Relations, Vol. 39, No. 4 (Apr., 2004), pp. 465-488
Published by: Shri Ram Centre for Industrial Relations and Human Resources
Stable URL: http://www.jstor.org/stable/27767923
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Panda
in a private
relations
structural
mechanisms
trade unions
management
environment
in terms of:
for
improvement
in the industrial
INTRODUCTION
The
present
examine
work
study
relationship
culture in Indian
is an outcome
between
of the research
industrial
The
organisations.
relations
out
carried
environment
study aimed
at
to
and
exploring
relations
case
The
environment
study
involves
and private
in public
sector organisations.
one
one
sector
sector
and
private
public
be
cultural
referred
maintaining
Ms.
Mamta
New belhi
sector organisation
will
region in India. The public
sector as
for the sake of
to as 'A' and the private
'J3'
confidentiality.
Panda
is Research
Associate
at
International
Management
Institute,
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466
Profile
Organisation
was
set up in 1987 in the eastern part of India
organisation
installed capacity of 2,30,000 tonnes per annum of metal and
The
with
world
standards.
The
organisation
segments
including
has
mines
five multi-locational,
well-integrated,
and captive
and has
power
plant
Chennai,
The
organisation
been making
has
consistent
profit
since
its
was
Rs.
during
vision
1506.65
1998-99.
crore
It is also
of
the organisation
in its field" while
repute
and
the profit
after
tax was
248
crores
of this metal.
The
major
exporter
is "to be an organisation
of global
the mission
in
is "To achieve
growth
at
shareholders
and community
customers,
employees,
In
of
the
in
interests
of
the
large."
recognition
securing
society
a wholesome
sustainable
industrial
with
growth,
compatible
environment,
importance
environment
to
the organisation
and maintenance
of a pollution-free
promotion
in all its activities.
It also dedicates
itself to ensure
environment
As
major
in all areas
and
of its operations
in
to set standards
management.
initiative
towards meeting
social
responsibility,
it
In this
various
in
taken
been
villages.
regard,
steps have
with the local government
collaboration
and authorities. The plants
of the organisation
in
located
areas;
though
populated
sparsely
a direct
there was
at
of
about
600
the
time
families
displacement
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Industrial
Relations
Environment
and Work
467
Culture
in the organisation.
1800 persons
from affected families
Besides,
a
have
the organisation's
operations
generated
large variety of
and
income
the
for
of adjacent
employment
opportunities
people
areas.
belonged
category.
The Chairman-cum-Managing
(Personnel
the Resident
Organisation
The
producing
units
are headed
Managers.
Profile
The
organisation
India with
installed
'B'
was
capacity
was
expanded
from 24,000t
to 30,000t
and
in
tonnes
as a whole
The organisation
had a total
of primary metal.
crores
with
1997-98
of
realisation
of Rs.1162.5
during
crores as net
profit.
turnover
Rs.71.4
vision
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468
is "To pursue
the creation of value
for all its customers,
core
at
and
shareholders,
society
large." The stated
employees
mission
values
of the organisation
100% Commitment,
Accountability,
and Environmental
Responsibility.
Self Confidence,
Seamlessness,
Concern
for the Community
THE PRESENT
category.
STUDY
'B' belonging
'A' and 145 employees
of organisation
organisation
to all the levels
trade union
leaders. Primary data were
including
as well as
collected
observations
through questionnaires,
in-depth
interviews
of management,
union and
of a cross-section
personal
were
The
workers
interviews
focused
representatives.
primarily
on
concerns
as
into
the
industrial
relations
gaining
major
insight
the prevailing
environment
is being
Mechanism
for Industrial
industrial relations
presented
Relations
in terms
Management
Unions
Collective Bargaining
Workers
Union
Participation
Management
Major
Industrial
Initiatives
Relations
in
Management
Relationship
Relations
issues
improvement
in the Industrial
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469
ENVIRONMENT
AT
Context
The
certain
has
organisation
features
unique
in
particularly
work
The
culture.
was
organisation
in 1987
established
as
the
subsistence
econoiny
on
based
agriculture.
The
of setting
objective
and
raise
their standard
of living.
The plant
area
covers
39
which
was
maximum
to accommodate
number
of land displaced
in the formative
years, were
largely drawn
from
organisations.
of exposure
to industrial
culture,
for
basic
norms
organisations wherein
indicative
organisation
status
rather
Ascribed
governing
the employees
of industrial
than achieved
status
and belongingness.
to govern
continues
at
operating
'village panchayat'
on
is
therefore
based
identity
village
shop floors. Inter-group rivalry
a common
commitment
of the employees
Generating
phenomenon.
remains a distant dream.
to the overall objectives
of the organisation
a common
as common
stakeholder
The employee
sharing
platform
and speaking with one voice is to yet to be realised.
not uncommon
The
Current
to see
the whole
Scenario
by yet another
a natural
outcome
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470
of localisation
commercial
drawn
of the workforce.
The
employees
and by using
of their own
interests
have
developed
their influence
exerted
pressures
alongwith
leadership
contracts
to
have
able
for
been
obtain
they
of
and
has
the
like.
This
resulted
waste,
supplies, disposal
delivery
in
as also efforts
to
of their objectives
displacement
contributing
the improved effectiveness of the organisation.
interests
Commercial
on
the management;
have
become
while
the organisation's
towards
working
for
such
secondary
employees.
primary
has become
objectives
between
management
demands
are
decisions
administration
to be of compromising
on
even
placed
management
like change of shift of workmen.
themselves
on
routine
There
is a
with
and personal
nature.
Forces
Extra-Organisational
Undue
inevitably
at the local
to resolve
make
concerns
for bringing about improvement
profit. Long-term
in various
of organisational
dimensions
essential
for
effectiveness
sustained
are
the
of
thus
long-term viability
enterprise
neglected
in the context of
emerging
competition.
Structural
Mechanism
for Industrial
Relations
Management
head
of the industrial
relations machinery
of the organisation
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who
Industrial
Relations
Environment
and Work
units.
the
Under
471
Culture
General
other HRD
Managers,
of industrial
relations
activities
are also
executives
of the respective Units. The HRD
inside
placed
in case of disputes
as well
as to facilitate
to mediate
the plant
a
informal grievance
of
Besides,
system.
handling
good number
are
as
to
act
for
the
line
organised
training programmes
personnel
respective
the coordinator
executives
act as
facilitators
of industrial
Conciliation
Machinery
is no
There
relations.
conciliation
set up in the
committee/machinery
of disputes.
Continuous
interaction
organisation
with the representatives
of the unions and proactive
steps restricts
or
to
third
the disputes being referred
Government
party
machinery.
outcome
Grievance
Handling
Grievance
equal
handle
of inter-union
rivalry.
Committees
handling
representatives
the individual
committees
have
been
constituted
and management
the employees
common
The
issues are
grievances.
from
with
to
first
matters
are taken
to all the employees
of the organisation
at
settled
level.
level and mostly
bi-partite
relating
up at corporate
Trade
Unions
Being a multi unit public sector, the activities at the plant are
examined
units.
There
in the context
are
at its different
units
and
in the other
prevailing
in the organisation
existing
of them only one union has
of the situation
offices.
Out
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472
be ascertained
of membership
through
the
State
the
Labour
Authorities
by
during
one
month
of May, 2002 and accordingly
union has been accorded
at
Office
recognition.
Similarly,
Corporate
though the verification
secret ballot
conducted
2002,
not
have
been
since
published
the matter
is
and
membership
been made
initiating
of State Labour
For verification
of
a
has
request
recognition
for
Labour
Commissioner
(Central),
and
Authorities.
at Mines,
subsequent
to the
Regional
action in this regard.
Out
10 unions,
other unions
The details
Organisations.
of affiliations of Unions
5
3
5
1
10
INTUC
HMS
BMS
CITU
Unaffiliated
Collective
are as under:
Bargaining
In absence
unions
are
as well
as
given
of recognized
equal
negotiations
unions,
representatives
in various
scope for participation
and collective
bargaining.
of all
the
committees
verification
Workers
of membership
Participation
and subsequent
recognition
of unions.
in Management
Involvement
of
to
in production
and
employees
participate
as well as
increases
greater
productivity
generates
awareness
the
about
their role in production,
among
employees
safe working
and
control, waste
process
prevention,
practices,
in
conditions.
this
also
Besides,
improvement
working
provides
related
activities
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Industrial
an
and
Relations
including
measures.
In line with
to express
their innovative
ideas
inwork
and
other
work
systems
related
safety, cost control and work
on Workers
has
organisation
473
Culture
for improvement
suggestions
related matters
Government
and Work
to the workers
opportunity
welfare
Environment
introduced
by the Central
in Management,
Participation
a scheme of Workers
1990
since
the
in
Participation
for workers
January
providing
unit level and apex level.
floor
level,
participation
shop
Initially,
and
councils were not appreciated
the participative
by the unions
to acute
not
inter-union
the
unions
did
their
due
rivalry
give
Management,
nominees
at
with
However,
constant
follow up, at
further actions
and
Besides
committees
be
would
taken
for information
of plant
councils.
apex
management
Canteen
equal
functioning
Management
nomination
from
at the units.
employees
joint
and
Committee
Safety Committee
Welfare
Committee
Grievance
House
Committee
Allotment
Advisory
Committee
as a measure
of Total
Circles
Further, the formation of Quality
as
as well
movement
better
employee
encouraging
Quality
the qualitative
has enriched
participation.
participation
Quality Circles
The
organisation
encouraging workmen
introduced
Quality
to identify problems
Circle
with
a view
to
to these
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474
Scheme
reward
scheme
more
to encourage
for improvement
encouraging
and
in operational
of participation
areas
thereby
in the management.
related
sense
suggestions.
Union
Relationship
Management
between
Relationship
Lack
from being cordial.
observation
is far
and the workmen
management
of respect can be illustrated
through the
"On the shop floor, if there is only one table and chair, the
workers would occupy it and not offer the GETs (Graduate
Trainees)
Engineer
The
workmen
to sit down."
tend
to use
and threaten
language
dire
of
managers
consequences
to their demands.
therefore
Managers
abusive
particularly
if the latter do not yield
distance
tend tomaintain
is kept
to the minimum
so as to ensure
and
the interaction
is carried
the management
legitimacy
managers
but does
managers
the undesirable
the workmen.
behaviour
acquires
to one of the
amongst
According
comes
to the workplace
if a worker
"we feel helpless
we
not work,
Middle
cannot
level
do anything".
lack of support
from top
about
often
complaint
want
in case
to enforce discipline
amongst
management
they
is therefore tendency among middle management
workers.
There
not to initiate any action as they perceive
that they may not get
the support of their seniors. As seen in quite a few cases, decisions
taken by middle
have been
reversed
level managers
by their
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Industrial
Relations
Environment
and Work
475
Culture
the workers
and the management
superiors. The tension between
transcends
the
of
the
and continues
beyond
boundary
workplace
to persist in the social life as well, as one of the managers
quoted,
"inside
'Sirs'.
are
gestures
of
symbolic
and
strained
hostile
assault
nevertheless,
humiliation.
they
cases
these
Although
indicators
significant
are
of quality
are
rare
of employee
relationship.
Relations
Industrial
Major
Issues
relations
and
on
adhocism
vision.
perspective
status of sole
bargaining
of
each of
membership
a common
is
membership
Undue
complex.
groups
interference
No
has
longer-term
to
the
acquire
to verify the
difficult
been
It is also
agent.
the three existing
able
unions.
Fluidity
of
phenomenon.
from local
leaders makes
and continuance
The
than
rather
union
emergence
nullifies any attempt
to deal with
of village-based
pressure
formal unions. The undue
the management.
to manage
issues
prerogative
informal consultation
Quarters
Due
with
its own
thus uses
Management
to industrial
relations with
relating
the registered
unions.
Allotment
to non-availability
of rental
accommodation
in the local
constant
to provide
pressure
as
as well
itsmanagerial
personnel.
in number, at times
limited
The number of quarters available
being
as well
as to
to the workers
is allotted
the same type of quarter
to
resentment
the
has
led
which
among
managers
employees.
is under
the management
to theworkmen
accommodation
area,
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476
As
sector undertaking
public
has
the organisation
organisation
acquired.
top
given
land the
was
Despite
to displaced
the employment
persons
continues
to remain
of manpower
downsizing
informal
political pressures
to employment
issues.
Cases
Pending
in Various
are
Formal and
competitive.
on the
management
relating
placed
Courts
Tribunals
in Table
1.
In all
are
the matters
the cases,
All the cases of claims with regard to fatal accidents have been
settled.
The
accidents
pending
pending
with
the
Act
Compensation
Restrictive
Workers
of claims with
total numbers
are
for settlement
Commissioner
regard
21. All
to other non-fatal
are
these claims
under
the Workmen's
and disbursement.
Practices
often
to restrictive
resort
authorised
absence,
respective
workplace,
practices
insubordination,
not punching
in the form of un
outside
loitering
their cards,
coming
their
late,
spending time in the canteen during working hours and the like.
Role of Corporate Office
There is a feeling especially amongst themiddle levelmanagers
that
the
indiscipline
discipline,
the Corporate
is not very firm. As
role
my
of
senior
reverses
Office
quoted by
it". The
in matters
a manager,
result
is a
to
relating
"if I enforce
feeling
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of
among
short-term
industrial
objectives
relations
in dealing
with
the managers
and
cases
477
of indiscipline
are on
the rise in the plant. It is also felt that the Corporate Office has
Measures
Undertaken
actions
Proactive
in Industrial
for Improvement
Environment
and open
communication
Relations
system
facilities
The
communication
have
system
interference
In order
improved
unions.
of various
to promote
The
also
negotiations
trade unionism,
sent
are also
for a cause
Informal meetings/
specialized
committee
co-ordination
the unions
grievance
handling
to avoid unnecessary
are conducted.
tours.
industrial
as
in order
responsible
training programmes
programmes
are
leaders
as well
system
been
encouraged
get-togethers
trade union
missions
core group
and
of common
and
during
and
from among
the time of
nature.
are
organised
in order
to
central
trade union
INDUSTRIAL RELATIONS
'B'
ORGANISATION
The
organisations.
ENVIRONMENT
AT
Context
The
climate
relations
industrial
has a history of healthy
organisation
in
and informal and friendly work
prevails
atmosphere
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478
complaints
and there
Organisation
and hard
working.
Structural
Mechanism
for Industrial
Relations
Management
unit who
act as
relations
in the unit.
and
coordinators
are
Line managers
of industrial
relations.
facilitators
Common
issues
concerning
for industrial
responsible
are also
to act as
expected
are
employees
brought
to the notice
workers.
knowledge
Management
to
terms to the unions.
dictate
position
Trade
informed.
Often
the trade
Unions
There
union
existing
accorded
has been
in the
organisation;
out of
recognition.
short-term
objectives
of the unions
in
general
as outlined
agreement
and
to win
their confidence.
The
long-term
Sourcing
Employment
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Industrial
Relations
Environment
and Work
479
Culture
Benefits
Welfare
Collective
Bargaining
Collective Bargaining
union.
trade
recognized
union
recognized
through secret
are:
done
and verification
ballot.
The major
sole
bargaining
of membership
issues
on which
is the
agent
has been done
bargaining
is
Productivity,
Paid
Leave
Welfare
Benefit,
Measures,
Restrictive
Practices.
Settlements
recent
settlement
Reduction
are as follows:
of Manpower
Productivity
Increase
Workers
Participation
in Management
on Workers
in
with
the scheme
Participation
the
the
Central
started
Government,
organisation
by
Management
for participation
has set up various
shop councils and joint councils
at the shop floor level. These
councils
in management
of workers
In accordance
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480
improvement
are
There
other
committees
and
Health
Environment,
at the
shop
conditions
working
such
Safety,
and
as
floor level.
the
on
committees
the Canteen
Committee
the environment
through
incentives
and
to the employees
giving encouragement
ensures
awards.
The canteen
committee
in the canteen.
Grievance
Handling
Grievance
Forums
handling
forums
such
as
shop
and
joint councils
of
reaching
have direct
manner
faster and in a peaceful
agreement
on decisions.
interaction with top management
and
to
These
small environment
Corrective
Action
Union
safety, hazardous
Management
Cordial
conditions
and
the like.
Relationship
and
informal
and
the unions.
exists
between
the
relationship
The
consults
the
unions
management
management
on issues
at the
frequently
relating to day-to-day
problems
shop
and other issues of common
concern.
floor, departmental
Monthly
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Industrial
meetings
besides
Work
work
Environment
Relations
those
relating
to new
and Work
the departmental
equipment,
481
Culture
are
issues
taken up,
etc.
issues,
ownership
Autonomy
are
Employees
in
spheres
given
a lot of
independence
and
freedom
in their
decision-making.
Orientation
Employee
Employees
are
looked
Free
canteen
food,
is a
Diagnostic
every
and
urine
for workers
are done
year.
is a medical
There
In case
check-up
of hospitalization,
also
for contract
attendance
labourers.
allowance
is paid
to
employees.
Industrial
Major
Relations
Concerns
Adherence
Since
being
to Values
i.e. their customers
aware
of the need
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482
Job Specialisation
The
organisation
- one
of one man
the principle
job.
Work schedule
or there
absent
adopts
is heavy
in certain
workload
is
the operators
areas,
refuse to carry out the job beyond their scope ofwork. As a result
the work
On
has
to be carried
out on
overtime
is carried
an average
on a
he
holiday,
are calculative
responses
reward
monetary
is paid
of overtime
10,000 hours
the amount.
double
as
in nature
payment.
in a month.
Employees'
think of some
they always
that they undertake:
work
is one of the highest in the country.
employee
out
Like wise
works
the basis
The
while
the industrial
relations
employees,
assessing
in the organisation,
environment
feel that the major
industrial
are:
encounter
in
relations
issues the organisation
future
may
To get an agreement
Drastic
reduction
on
higher
on overtime
to cut cost of
employment.
situation,
the unions
norms.
productivity
may
not agree.
industrial
been
peaceful
barring
and indiscipline.
practices
from agricultural
of
industrial
Absenteeism
practices
relations
are
situation
a few cases
The
background
in the organisation
of strikes, restrictive work
and
organisations
in the organisation
presented
in general
in Tables
how
to maintain
is high.
The
5,6 and 7.
discipline.
details
of such
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Industrial
Environment
Relations
Industrial
Relations
are no
There
Related
and Work
Cases
in Courts
Pending
relations
industrial
483
Culture
cases
related
in
pending
courts.
plans
and
practices,
Measures
interventions
as and when
for Improvement
Undertaken
necessary.
in Industrial
Relations
Environment
and
The
has
organisation
the industrial
relations
planned.
to improve
measures
and quality
participation
climate,
and employee
involvement.
a number
taken
Some
of
productivity
that encourage
of these measures
are:
While
committee
and
needs
the Workers
Kaizen,
considerable
which
for workmen
formulti-skilling
programme
to have given
the desired
result. The suggestion
organisation
shop
are
working
does
started
not
schemes
well.
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seem
in the
484
Training
& Development
on
are
by hiring external
training
organized
Regular programmes
for development
and union executives
faculty to train key workmen
workmen.
of mature,
among
leadership
professional
Redeployment ofManpower
in technology necessitates
retraining. The management
of manpower
redeployment
in this
has been cooperative
Change
through
regard.
of workers
Age-profile
younger
being
re-training
and
re
leaders
and workers
are young,
INDUSTRIAL RELATIONS
'A'AND
ORGANISATION
The
description
'A' and
organisation
relations
of the industrial
'B' very clearly
AT
at
environment
indicates:
term
objectives.
Being
public
sector
with
undertaking
multiple units, theunit ofA does not seem to enjoy the same
degree
of autonomy
At organisation
in industrial
relations
related matters.
two registered
unions,
one of
At organisation
B, there is a cordial and informal relationship
between
in
and
the trade unions,
but
management
organisation
formal with
seems
to be strained
A, the relationship
trust and respect.
relative lack of mutual
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and
CONCLUSION
485
IMPLICATIONS
relations
may
current
become
industrial
an
to
impediment
at Organisation
'A'
the organisation's
vision;
scenario
relations
employee-management
and
union-management
relationship.
orientation
thus will have to be replaced
Legal and administrative
to
to
orientation
industrial
relations.
The focus need
normative
by
to mutual
sectarian
from
shift from competition
collaboration,
interest
to
of the corporation,
from win-lose
objectives
strategy, for resolution of differences which will necessitate
to overall
win-win
to work
to create a work
in harmony
and management
together
to be
Intensive
need
culture of excellence.
training programmes
approach,
collaborative
orientation,
competency
of collective
bargaining
will
become
redundant
necessitating
the
of the vision,
values
and
strategies
and
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486
Authority/Courts
Supreme
Court
High Court
of cases
No.
pending
02
26
Industrial Tribunal
Labour Court
03
02
Table 2 :Councils/Committees
Name
are
cases
which
of Committees
Major Objectives
Effectiveness
Shop Council
Effective
JointCouncil
Highly Effective
and
Sub-committees
EOHS
Safety,
Health
Measures,
Open House
decisions
management
common
lookout with
Concerns
Decision
Effective
Table
Prizes
Hygiene of Food
Upkeep of Canteen
Canteen
Name
Highly Effective
Environment
and
Safety
:
4 Major
Industrial
Top
Major
Management
Relations
Unions
and
all
share
Highly Effective
Effective
employees
Concerns
Middle
Supervisors
Workers
Managers
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Industrial
Need
Low
productivity
Environment
Relations
of hour
for survival
and Work
Though
union
understands
think people
leave
may
their side
Essential
Outsourcing
Loss
Scope for
Difficult to
productivity
implement
without
improvement
is enough
the need
of
487
Culture
Essential
change
attitude
Will be
losers on
account
in
of
overtime
benefits
Will be
Essential
extra
losers on
earning
account
of
overtime
benefits
Table 5 :Strikes
No. of Strikes
(since inception)
1970Once
Duration
each
of
Outcome
89 days
of each
1995
Occurrence
etc.
Twice
departments
Generally on
what issues
they are
managed
M/M,W/S
Discipline
Bi-partite
Settlement
Inwhich
How
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488
Table 7 :Cases of Indiscipline
Number of Cases of
Indiscipline (past 5 yrs)
Type of Indiscipline
1997- 21
Mostly Absenteeism
1998-
13
Mostly Absenteeism
1999- 17
Mostly Absenteeism
2000
-23
Absentism, JobRefusal
2001-12
JobRefusal
Frequency
Regular (Chronic
Cases)
Regular (Chronic
Cases)
Regular (Chronic
Cases)
Regular (Chronic
Cases)
Concentrated to
one Area
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