BBA Fourth Year Eighth Semester Examination, 2013

Industrial Relations And Conflict Management

Part A- Short Questions

1. (a) What is meant by harmonious industrial relations?

Ans: Many authors have defined industrial relations. Language of
definitions may be different but they expressed the same sense. According
to E.F.L.Breach “Industrial relation is mainly concerned with employer-
employee relationship”. Again Tead and Metcalfe said “Industrial relation
is the composite result of the attitudes and approaches of employers and
employees towards each other with regard to planning, supervision,
direction and coordination of the activities of an organization with a
minimum of human efforts and frictions, with an animating spirit of
cooperation and with proper regard for the genuine well being of all
members of the organization”.
Thus we can say that that industrial relation is the relation of Individual or
group of employee and employer for engaging themselves in a way to
maximize the productive activities.
A sound Industrial relation within an organization is known as harmonious
industrial relation.

(b) Describe are the objectives of industrial relations.

Ans: The primary objective of industrial relations is to maintain and develop
good and healthy relations between employees and employers or
operatives and management. The same is sub- divided into other
objectives.

Thus, the objectives of IR are designed to:

1. Establish and foster sound relationship between workers and
management by safeguarding their interests.

2. Avoid industrial conflicts and strikes by developing mutuality among the

interests of concerned parties.

3. Keep, as far as possible, strikes, lockouts and gheraos at bay by

enhancing the economic status of workers.

4. Provide an opportunity to the workers to participate in management and

decision making process.

5. Raise productivity in the organisation to curb the employee turnover and

absenteeism.

6. Avoid unnecessary interference of the government, as far as possible and

practicable, in the matters of relationship between workers and
management.

7. Establish and nurse industrial democracy based on labour partnership in

the sharing of profits and of managerial decisions.

8. Socialize industrial activity by involving the government participation as

an employer.

According to Krikaldy, industrial relations in a country are influenced, to a

large extent, by the form of the political government it has. Therefore, the
objectives of industrial relations are likely to change with change in the
political government across the countries.
 Accordingly, Kirkaldy has identified four objectives of industrial relations as
listed below:

1. Improvement of economic conditions of workers.

2. State control over industrial undertakings with a view to regulating

production and promoting harmonious industrial relations.

3. Socialisation and rationalisation of industries by making the state itself a

major employer.

4. Vesting of a proprietary interest of the workers in the industries in which

they are employed.

2. (a) Define Trade Union.

Ans: Trade Union is an organized association of workers in a trade, group of
trades, or profession, formed to protect and further their rights and
interests. An organization whose membership consists of workers and
union leaders, united to protect and promote their common interests.
The principal purposes of a labor union are to
(1) Negotiate wages and working condition terms
(2) Regulate relations between workers (its members) and the employer
(3) Take collective action to enforce the terms of collective bargaining
(4) Raise new demands on behalf of its members
(5) Help settle their grievances.

(b) What are the causes of weakness of trade union in Bangladesh?

Ans: Some common causes of weakness of trade union in Bangladesh are as
follows:

Lack of consciousness: Trade Unions are not actually aware about

employees legal rights and duties.
 Lack of unity: In Bangladesh trade unions are separated for political
influence.
Lack of knowledge: The workers of Bangladesh don’t have enough
knowledge about their rights and duties.
Political influence: In Bangladesh trade unions work a part of political
parties not as a free right saving association.
Division of trade union: Bangladesh is a country where every organization
has more trade unions in name only. The overall productivity got down.

These were some common causes.

3. (a) What is chamber of commerce and industries?

Ans: A chamber of commerce (or board of trade) is a form of business
network, for example, a local organization of businesses whose goal is to
further the interests of businesses. Business owners in towns and cities
form these local societies to advocate on behalf of the business community.
Local businesses are members, and they elect a board of directors or
executive council to set policy for the chamber. The board or council then
hires a President, CEO or Executive Director, plus staffing appropriate to
size, to run the organization. Example: DCCI

(b) Mention the various style of manager in dealing with employees.

Ans: Some managerial styles in dealing with employees are given below:

Autocratic: Here, managers decide and enforce their decision on their

employees. They neither have a two-way communication with employees,
nor do they invest any trust in their employees. This can be demotivating to
employees. However, it suits situations where organizations have to take
quick decisions and control a large number of employees without requisite
expertise.
 Paternalistic: Paternalistic managers pay attention to the employees’ social
and recreational needs while making decisions. They give directions to
employees, making the information flow from top to bottom. Here, they
take employee.

Democratic: In this management style, everyone is involved in the decision

making process. Communication flows in a two-way direction, thereby
improving job satisfaction and productivity. Employees feel they are part of
the process and are motivated to live up to the company’s expectations.
However, this process slows down decision-making since a consensus is
usually taken from all employees. At times, therefore, managers may not
be able to implement the best decisions. Therefore, as managers, one
needs to have a judicious mixture of these strategies for better results.

4. (a) What is industrial dispute?

Ans: According to W. F. Glueck “Dispute is said to exist between two or
more individuals of work group when they disagree on a significant
issue/issues and clash over the issues”. Again J. W. Newstorm said “
Conflicts are regarded as a negative force that creates tension, lowers
productivity and disrupts employee relationships”.
So we can say that dispute is a disagreement among two or more
individuals, groups or organization.

(b) Discuss the role of government in resolution of industrial dispute.

Ans: Govt. can play some important roles in conflict resolution in all
countries. It is discussed below:

 Government is not sincere: Sometimes government either avoids the

consequence of arrival of conflict or tries to ignore by showing any
reason which shows the insincerity of the govt. Govt. does this to
remain above criticism and to get praise from different sources.
 Government’s failure: Sometimes situation becomes so difficult when
govt. cannot play play role in resolving such a conflict due to
 dependence of govt. on any of the group involved in conflict or govt. has
no legal authority to apply force for resolving conflict.
 Law is not effective: Law of the country may not be effective enough to
convict or punish the accused. Because there are many drawbacks in
laws which give the accused a way out to remain free of punishment
and avoid legal action.
 There is no binding of law: No application of law in the country also
shows the lacking of govt. in terms of legal action involved in conflict.

5. (a) “Conflict is expressed and grievance is implied” Do you agree?

Ans: Industrial conflict is the situation where disputes and disagreements
arise between employees' and employers over matters related to the
working conditions. Normally conflicts are expressed through strikes,
lockouts, rallies, etc. On the other hand Grievance is a complaint expressed
in writing or orally on a company related matter. A grievance can be
broadly defined as an employee’s dissatisfaction or feeling of personal
injustice relating to his/her employment relationships.
Conflict is a result of dissatisfaction of a group and grievance is a result of
dissatisfaction of an individual. Grievance is a filed report against
management whereas conflict is an expression of frustration on not
fulfilling a demand.
So it can be said that conflict is expressed and grievance is implied.

(b) Briefly explain the importance of industrial relations.

Ans: 2011 1(b)

6. Explain the role of govt. in improving industrial relation at workplace.

Ans: Industrial relation is the complex of inter-relations among workers,
managers and government. So directly or indirectly govt. has great impact
on practicing industrial relations. Govt. can play a vital role by apllying the
followings:
  Strong rules and regulations should be imposed by govt. and everyone
should be made bound to oblige that.
 Govt. should take scheme to resolve dispute. By reducing dispute good
industrial relation can be ensured in the organization.
 Development should be continuous within IR practices.
 Govt. should ensure safety of the employees.
 Fair practice should be maintained for all employees. Govt. should run
anti-corruption program regularly to ensure this.
 Govt. should pressurize top management to cooperate with employees.

7. (a) Define collective bargaining.

Ans: 2011 8(a)

(b) What are the pre-requisites of collective bargaining?

Ans: Effective negotiations and enforcement requires a systematic
preparation of the base or ground for bargaining which involves the
following three steps:

1. Recognition of the Bargaining Agent: The management should give

recognition to the trade union for participating in the collective bargaining
process. In case there is more than one union, selection could be done
through verification of membership by a government agency giving
representation to all the major unions through joint consultations. Thus,
the bargaining agent of the workers should be properly identified before
initiating any action.

2. Deciding the Level of Bargaining: Whether the dealings are confined to

enterprise level, industry level, regional or national level should be decided
as the contents, scope and enforcement agencies differ in each case.
 3. Determining the Scope and Coverage of Bargaining: It would be better
to have a clear understanding of what are the issues to be covered under
bargaining. Many a time, bargaining is restricted to wage and working
conditions related issues but it would be advantageous for both the
management and union to cover as many issues as possible to prevent
further friction and disputes. Therefore, all the important and interrelated
issues are to be taken for consideration.

Part B- Broad Questions

8. (a) What are the causes of labor unrest in Bangladesh?

Ans: Labor unrest is a common problem in Bangladesh. Causes behind this
are discussed below:

Lack of tolerance: Any late or delay in decision making or implementation

of any policy leads to dispute because employees do not intend to accept
any delay. In these situations where employees don’t show any tolerance
instead they become angry and go for movement which creates labor
unrest.

Unfair management: In various cases management is autocratic and do not

provide employees with health and insurance facilities. Due to lack of
sufficient care about the social welfare activities conflict is created.

Political instability: Political instability also results in labor unrest. Political

instability provokes the leaders to bring outside forces inside the
organization which ultimately leads to an unrest.
High ambition: Expectation of the employees are sometimes very high and
leads to unrest when their demands are not fulfilled.

Unfair support of politicians: Sometimes politicians give unfair support to

the management or the employee representatives for their selves-motive.
When one party is given support another party does not take it easily and
takes it as a conspiracy against them which leads to unrest.

(b) Briefly outline the post liberalization industrial relation scenario in

Bangladesh.
Ans: Industrial relations are the concerning things of Bangladesh’s
organizations. It is the interrelationship among workers, managers and
government. Industrial relation systems in Bangladesh especially in public
sector are not satisfactory. Though there are many potential trade union
leaders and committed management but still cannot run industrial relation
fruitfully.

Causes of poor Industrial Relations:

Poor industrial relation may create havocs to the public organizations.
There are some specific causes behind these problems. They are:
 Government’s indifference
 Autocratic attitude
 Gender difference
 Lack of security
 Injustice in recruitment and promotion
 Lack of favorable outlook
 Defected supervision
 Tendency of corruption
 Political support and instigation
 Anomalies in wage policy.
 Why IR has not been improved yet: Industrial relations in Bangladesh
are not strong enough compared to developed countries. In spite of
some reasons it has not been made as per desire of management. The
causes are:
 Unstable organization’s policy
 Pitiable support from government
 Unbalanced political support
 Lack of potential workforce
 Employee grievances
 Maintenance problem
 Lack of creativity
 Poor salary scale
 Lack of leadership

Ways to improve Industrial relations in Bangladesh:

 Strong rules and regulations should be imposed from government.
 Dispute must be reduced.
 Absenteeism should be controlled.
 Continuous development.
 Financial backup.
 Measures for safe and safety.
 Fair practice
 Flawless work environment should be maintained.
 Support from top management must be ensured.

Though the post liberalization industrial relation scenario of Bangladesh is not

satisfactory but still there are ways to improve it.
© “The changing socio-economic condition of the country has impacted the
industrial relations to a large content.” Critically examine the statement.

Ans:

9. (a) What is ILO labor standard?

Ans: International labor standards refer to conventions agreed upon by
international actors, resulting from a series of value judgments, set forth to
protect basic worker rights, enhance workers' job security, and improve
their terms of employment on a global scale.
Since 1919, the International Labour Organization has maintained and
developed a system of international labour standards aimed at promoting
opportunities for women and men to obtain decent and productive work,
in conditions of freedom, equity, security and dignity. In today's globalized
economy, international labour standards are an essential component in the
international framework for ensuring that the growth of the global
economy provides benefits to all.

(b) How the ILO is assisting the government workers and employers of
Bangladesh govt. to fight gender discrimination?
Ans: Although women make up half of the population of Bangladesh, they
still account for only about a third of the labor market, often working at the
lowest level of the jobs hierarchy with little employment security. Many are
also engaged in the informal economy where the application of social
protection and legislation is negligent. Large numbers of women (approx.
56,000 in 2013) migrate overseas for domestic work where they can find
themselves vulnerable to exploitation while the trafficking of women from
Bangladesh remains an issue.

Bangladesh is also home to around three million indigenous and tribal

peoples (ITPs) from more than 50 ethnic backgrounds. They belong to the
most disadvantaged sections of Bangladeshi society and face multiple
challenges including economic, cultural, social and political marginalization.
 ILO is working in with a variety of partners including government ministries,
workers and employers organizations as well as social partners to promote
gender equality, eliminate discrimination and counter exploitation in the
world of work.

Activities include mainstreaming gender in the Decent Work Country

Program (DWCP); promoting women’s participation and gender equality in
the trade union movement; promoting and protecting rights of female and
male migrant workers; access by women and young people to skills
training; and promoting the rights of indigenous peoples in Bangladesh
through capacity building and advocacy.

© What are the fundamental principles and rights at workplace?

Ans:

10. (a) “Workers participation in Bangladesh has not been a resounding

success” Do you agree with the statement? Give valid reasons.
Ans: Workers participation in Bangladesh has not been a sound process.
Yes I agree with the statement. The reasons are:

Lower level workers cannot participate: The lower level employees are not
allowed to participate in Bangladesh.

Lack of confidence: Lack of confidence about knowledge, information, etc.

is another reason.

Problems with scientific management: A large number of employees

cannot adjust with scientific management.

Employee manipulation: Sometimes there are problems of employee

manipulation for or against plan or decision.
Costly & time consuming: As the process is costly and time consuming
managements are not interested to involve employees in management.

Unwillingness of employees: Some employees take part in the plan

formulation and decision making process but show unwillingness to
contribute anything.

Lack of efforts: After taking decision by participation, employees don’t

deploy substantial efforts to implement the decisions.

(b) Explain reasons for the growth of industrial democracy.

Ans: Reasons behind growth of industrial democracy are as follows:

Increased production: It is very important to establish the democracy in the

industry with a view to increase productivity level.

Increased job satisfaction: Industrial democracy leads to job satisfaction

among workers in the industries.

Feeling of security: Industrial democracy makes the workers feel like the
organization cares about them and consider them to be members of the
organization and it creates a sense of job security among the workers.

Create cordial environment: Successful industrial democratic system helps

establish and maintain cordial atmosphere in the organization.

Ensuring good relations: Industrial democracy ensures a good labor-

management relation.

Organizational citizenship: Democracy makes the workers that they are an

important part of an organization.
© Describe the major prerequisites to participative management.
Ans: Participative management can best be described as a style of decision
making that ensures that involvement of stakeholders at all levels. This
operates at three levels, Problem analysis, strategy formulation and final
implementation of the solution. There are certain prerequisites to be met
before participative management can be put to work.
 Participative management first of all requires a willingness from the
managers to give up some charge to the workers.
 Since participative management is a style of decision making, therefore
its implementation essentially requires a change in the employee’s idea
of the latter. This change also means that there is a cultural change
required in the organization
 One more prerequisite for successful participative management is
attitude of the top and middle management or those who seek
employee interventions in decision making. They must approach
employee involvement with a receptive and open mindset. This
encourages participation
 Since decision making is based on inputs of one and all, therefore its
success also depends on the degree of participation of employees. In
certain organizations despite obvious proofs, the employees decide not
to participate or make contribution. In yet another organizations the
employees are not skilled enough to make meaningful contributions to
the final decision making process. This can be overcome by imparting
the right kind of training and by the manager himself by ascertaining the
individual strengths of his team members and asking for relevant
contributions based upon the same
 In large organizations in order to ascertain the relevance of suggestions,
managers also need to set certain benchmarks for making inputs to
various groups so that discussions are held at levels that are
consequential and the solutions are feasible economically.
11. (a) Describe the various disciplinary actions.
Ans: Various Disciplinary actions are:

Verbal Warning: Supervisors issuing a verbal warning and request for

performance improvement should document the warning. This record is
kept in the department’s files, and a copy is given to the employee.
Supervisors should be specific when giving verbal warnings, and should
include how the performance or behavior falls short of expectations, what
corrections must be made, and the consequences if the employee fails to
take the corrective action requested. If the performance does not improve,
then a written warning follows.

Written warning: As with the verbal warning, the written warning should
document the specific performance deficiencies, steps necessary to correct
the deficiencies, and the consequences of failing to correct the behaviors.
The formal written warning is given to an employee whose response to a
verbal warning has been insufficient. Supervisors must work with a
representative of Human Resources when preparing written warnings. A
copy of this and any other written warnings is kept in the department,
provided to Human Resources for inclusion in the employee’s personnel
file, and a copy must be given to the employee.

Final Written Warning: If the unacceptable performance or misconduct

continues or recurs, the supervisor will consult with a representative of
Human Resources prior to issuing a final written warning. The warning must
give a specific deadline for meeting the standards of performance or taking
corrective action must be given, and must inform the employee that failure
to improve to the required standard by the deadline will result in
termination.
Pre-termination hearing: The pre-termination meeting is conducted under
the direction of the Human Resources department. At the hearing, the
department delineates its reasons for considering termination of the
employee. The employee, who can be accompanied by an Employee
Relations representative if desired, will be given time to present evidence
to address the department’s points.

Termination: If termination is decided upon, the employee will receive

written notification of the action being taken, the reasons leading to the
action, the date the action will occur, and what steps should be followed if
they decide to appeal the termination.

(b) Cite the different steps of disciplinary actions.

Ans: A number of specific steps can be followed to conduct a disciplinary
action program successfully. These are as follows:

Accurate statement of disciplinary problem: The nature of the disciplinary

problem should be stated first. If the natures are accurately stated and the
sources are properly identified the other steps of disciplinary action may be
effectively followed.
Gathering information: The date and relevant information are supposed to
be collected at the second step. For the purpose, proper statistical methods
should be adopted and sincere enumerators should be selected.
Establishing tentative solution: After collecting data and information,
tentative solution should be initiated. The authority must be very careful in
selecting and establishing the solution.
Choosing solution: Among the many alternative solution , the reasonable
and justified solution should be selected.
Applying penalties: This step of disciplinary action is most important
because employees who have created indiscipline are punished in this step.
Follow up the disciplinary action: At the last stage, the result of disciplinary
action should be monitored. Optimum result may help the management to
follow up the same action program in future. Otherwise it may be revised.
12. (a) “Loss of self-interest creates dissatisfaction and dissatisfaction creates
grievances.” Discuss.
Ans:

(b) Describe the steps in handling grievances.

Ans: 2011 11(b)

13. Write short notes:

(a) Employee empowerment: Employee empowerment has been described
and defined in many ways but is generally accepted as: the process of
enabling an employee to think, behave, act, react and control their work
in more autonomous ways, as to be in control of one’s own destiny.
Effective employee empowerment not only has positive implications for
employee satisfaction, but also many other organizational facets, such
as member service and member retention.
Benefits:
 Improve Productivity - Reduce Costs
 Better Customer Service
 Embracing Change

(b) Workers Typology:

(c) Integrative Bargaining: Integrative bargaining (also called "interest-

based bargaining," "win-win bargaining") is a negotiation strategy in
which parties collaborate to find a "win-win" solution to their dispute.
This strategy focuses on developing mutually beneficial agreements
based on the interests of the disputants. Interests include the needs,
desires, concerns, and fears important to each side. They are the
underlying reasons why people become involved in a conflict.
Integrative refers to the potential for the parties' interests to be
[combined] in ways that create joint value or enlarge the pie.” Potential
for integration only exists when there are multiple issues involved in the
 negotiation. This is because the parties must be able to make trade-offs
across issues in order for both sides to be satisfied with the outcome.

(d) ILO in Bangladesh: The International Labor Organization (ILO) works

with the government, workers and employers organizations to promote
decent and productive employment opportunities for women and men
in Bangladesh. Bangladesh has been an active member State of the ILO
since 22 June 1972 and has ratified 35 ILO Conventions including seven
fundamental conventions. The ILO opened its office in Dhaka,
Bangladesh on 25 June 1973, and initially started working on expanding
income-earning opportunities through labor-based infrastructure
development and maintenance

(e) Charge Sheet: The concept of charge sheet is derived from criminal law.
Under the criminal procedure code the Magistrate frames the charges.
In case of investigations made by the police, in terms of Sec.173 of Code
of Criminal Procedure the officer in-charge of the police station shall
forward a report in the form prescribed to the Magistrate empowered
to take cognizance of the offence. The magistrate can discharge the
accused person, if on consideration of the document, the charge is
deemed groundless. Otherwise the magistrate is to frame the charge. In
disciplinary inquiries in public and private employment the disciplinary
authority frames such a charge, if he thinks fit to do so.

(f) Labor Court: A labor court (or labor court or industrial tribunal) is a
governmental judiciary body which rules on labor or employment-
related matters and disputes. In a number of countries, labor cases are
often taken to separate national labor high courts. Other states, such as
the United States, possess general non-judiciary labor relations boards
which govern union certifications and elections.