A CORPORATE INTERNSHIP PROJECT ON

“INDUSTRIAL RELATIONS MANAGEMENT”

With reference to
VOLKSWAGEN.

A project report submitted to the department of management studies, Adikavi Nannaya University, In
Partial Fulfillment for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

BY
KARRI NARSI REDDY
REGD NO: 213848300011
Under of esteemed guidance of
Mr. A. RAJ KUMARSIR, M.Com
(FACULTY IN MANAGEMENT)

DEPARTMENT OF MANAGEMENT STUDIES

ADITYA DEGREE COLLEGE

(Approved by AICTE, New Delhi and affiliated to AdikaviNannaya University,
Rajamahendravaram)
TADEPALLIGUDEM-534101
Batch- (2021-2024)
 DEPARTMENT OF MANAGEMENT STUDIES
ADITYA DEGREE COLLEGE, TADEPALLIGUDEM
(Approved by AICTE, New Delhi and affiliated to Adikavi Nannaya University, Rajamahendravaram)

CERTIFICATE

This is to certify that the project work entitled “INDUSTRIAL RELATIONS”

submitted by Mr. KARRI NARSI REDDY is a Bonafide student of ADITYA
DEGREE COLLEGE, TADEPALLIGUDEM, West Godavari District, Andhra
Pradesh. He has done and submitted her report under the guidance and supervision of
Mr. A. RAJKUMAR, M. Com, Faculty in Management, in partial fulfillment for
the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION.

PLACE: TADEPALLIGUDEM
DATE:

Project guide Head of the Department Principal

Signature of the External

 DECLARATION

I hereby declared that the project work entitled “INDUSTRIAL

RELATIONS” with reference to “VOLKSWAGEN”, submitted by me to the department of
management studies, ADIKAVI NANNAYA UNIVERSITY” is a Bonafide work undertaken by me
under the esteemed guidance of Mr. A. RAJKUMAR, M.Com, Faculty in Management, ADITYA
DEGREE COLLEGE, TADEPALLIGUDEM and it is the result of my own efforts and it has not
been submitted earlier in part or full to this or any other university, for any Degree/published at any
time.

Place: TADEPALLIGUDEM
Date:
Karri Narsi Reddy
Regd No: 213848300011
 AKNOWLEDGEMENTS
I feel it is my duty and honor to acknowledge all those who have extended their guidance and warm
support in completing my project work.

Firstly, it is my privilege to thank Sri N. SESHA REDDY, Chairman, Aditya Group of Educational
Institutions for providing state of the art facilities, experienced and talented faculty members.

I earnestly convey my thanks to, Smt. N. SUGUNA REDDY, Secretary of Aditya Educations
Institutions for making me use all the technical facilities in the college.

I thank to Sri B.E.V.L. NAIDU, Academic Director of Aditya Educational Institutions for providing
wonderful Academic curriculum and enhancement programs for us.

I thank Mr. M. SRINIVAS REDDY, Director of Aditya degree colleges, for giving the permission to
carry out the project work.

I am grateful to Smt. P. LAKSHMI SAROJA, Principal of Sri Aditya Degree College, TPG. for
continuous support and encouragement in my endeavor.

I Also thank Mr. V N V B SURESH, Head of the Management Department for continuous support for
completing my project.

I also thanking Mr. A. RAJKUMAR guide of our project for the support render by him and express
my deep sense of gratitude to him under his guidance I could make a through and complete copy of
my project work.

Finally, I thank my beloved PARENTS KARRI GANGI REDDY, KARRI PADMA and
MANAGEMENT STAFF- V. NEELIMA JYOTHI MAM, Y. REVATHI MAM, D.RAMESH SIR,
who helped me, encouraged me, and strengthened me for successful completion of the project.

I also thank all my friends K. MOHAN MURALI KRISHNA REDDY relatives and all my well-
wishers who have directly or indirectly contribute their help in the successful completion of my project
work.
CHAPTER-1
 CHAPTER-1
INTRODUCTION

Human Resource Management (HRM or simply HR) have many

functions some are very crucial to manage and maintain the organisation. From all those main functions
I have selected the topic of industrial relations management. I tried to integrate my theoretical
knowledge of industrial relations management and combine it with practical examples as observed
during my internship. I have tried to cover all the major functions of Human Resource Management
industrial relation management and convey my understanding of the different functions of Human
Resource Management through this project. Industrial relations or employment relations is the
multidisciplinary academic field that studies the employment relationship; that is, the complex
interrelations between employers and employees, labour/trade unions, employer organizations, and the
state. At the end of the report, I have done a SWOT Analysis on the HRM followed by discussing
critical points. I have also tried to provide some recommendations based on my knowledge followed
by the conclusion which I gathered during my internship.

Human beings are social beings and hardly ever live and work in isolation.
We always plan, develop and manage our relations both consciously and unconsciously. The relations
are the outcome of our actions and depend to a great extent upon our ability to manage our actions.
From childhood each and every individual acquires knowledge and experience and understanding
others and how to behave in each and every situation in life. Later we carry forward this learning and
understanding carrying and managing relations at our workplace. The whole context of Human
Resource Management revolves around this core matter of managing relations at the workplace.
Industrial relations imply the relation between both employer and employees during the period of
employment in an industrial organisation. However, the concept of industrial relations has a broader
meaning. In a broader sense, the term industrial relations refer to the relation between various unions,
state and union, and between employers and government. Relations of all those associated with the
industry may be known as industrial relations. Industrial relations in HRM are the study of the
relationship between employers and employees in the workplace. It covers topics such as collective
bargaining, labour laws, and dispute resolution.

According to the International Labour Organisation (ILO), industrial relations deals

with relationships between either state and employers and workers organisations or the relationship
between the occupation organisation themselves.
The term industrial relations comprise two words, i.e., ‘industry’ and ‘relations. The term ‘industry’
refers to any productive activity in the organisation in which the employees are engaged. On the other
hand, the term ‘relations’ refers to the relationship, which exists within the industry between the
management and the employees. The relationship between management and employees within the
organisation within the organisational settings is defined by industrial relations. Industrial relations
emerge directly or indirectly from management-trade union relationships.

The newer name, "Employment Relations" is increasingly taking precedence because "industrial
relations" is often seen to have relatively narrow connotations. Nevertheless, industrial relations have
frequently been concerned with employment relationships in the broadest sense, including "non-
industrial" employment relationships. This is sometimes seen as paralleling a trend in the separate but
related discipline of human resource management.

While some scholars regard or treat industrial/employment relations as synonymous with employee
relations and labour relations, this is controversial, because of the narrower focus of employee/labour
relations, i.e. on employees or labour, from the perspective of employers, managers and/or officials.
In addition, employee relations are often perceived as dealing only with non-unionized workers,
whereas labour relations are seen as dealing with organized labour, i.e., unionized workers. Some
academics, universities and other institutions regard human resource management as synonymous with
one or more of the above disciplines, although this too is controversial.
 Some other key topics within industrial relations include employee grievances,
workplace safety, and the role of unions. The goal of industrial relations is to create a positive and
productive work environment for both employers and employees.

Industrial relations examine various employment situations, not just ones with a
unionized workforce. However, according to Bruce E. Kaufman, "To a large degree, most scholars
regard trade unionism, collective bargaining and labour–management relations, and the national
labour policy and labour law within which they are embedded, as the core subjects of the field."
Initiated in the United States at end of the 19th century, it took off as a field in conjunction with
the New Deal. However, it is generally regarded as a separate field of study only in English-speaking
countries, having no direct equivalent in continental Europe. In recent times, industrial relations has
been in decline as a field, in correlation with the decline in importance of trade unions and also with
the increasing preference of business schools for the human resource management paradigm.

Industrial relations have three faces: science building, problem solving, and
ethical. In the science building phase, industrial relations is part of the social sciences, and it seeks to
understand the employment relationship and its institutions through high-quality, rigorous research. In
this vein, industrial relations scholarship intersects with scholarship in labour economics, industrial
sociology, labour and social history, human resource management, political science, law, and other
areas.
 Industrial relations scholarship assumes that labour markets are not perfectly
competitive and thus, in contrast to mainstream economic theory, employers typically have greater
bargaining power than employees. Industrial relations scholarship also assumes that there are at least
some inherent conflicts of interest between employers and employees (for example, higher wages
versus higher profits) and thus, in contrast to scholarship in human resource management
and organizational behaviour, conflict is seen as a natural part of the employment relationship.
Industrial relations scholars therefore frequently study the diverse institutional arrangements that
characterize and shape the employment relationship—from norms and power structures on the shop
floor, to employee voice mechanisms in the workplace, to collective bargaining arrangements at
company, regional, or national level, to various levels of public policy and labour law regimes, to
varieties of capitalism (such as corporatism, social democracy, and neoliberalism).

When labour markets are seen as imperfect, and when the employment relationship
includes conflicts of interest, then one cannot rely on markets or managers to always serve workers'
interests, and in extreme cases to prevent worker exploitation. Industrial relations scholars and
practitioners, therefore, support institutional interventions to improve the workings of the employment
relationship and to protect workers' rights. The nature of these institutional interventions, however,
differ between two camps within industrial relations. The pluralist camp sees the employment
relationship as a mixture of shared interests and conflicts of interests that are largely limited to the
employment relationship. In the workplace, pluralists, therefore,
champion grievance procedures, employee voice mechanisms such as works councils and trade
unions, collective bargaining, and labour–management partnerships. In the policy arena, pluralists
advocate for minimum wage laws, occupational health and safety standards, international labour
standards, and other employment and labour laws and public policies. These institutional interventions
are all seen as methods for balancing the employment relationship to generate not only economic
efficiency but also employee equity and voice. In contrast, the Marxist-inspired critical camp sees
employer–employee conflicts of interest as sharply antagonistic and deeply embedded in the socio-
political-economic system. From this perspective, the pursuit of a balanced employment relationship
gives too much weight to employers' interests, and instead deep-seated structural reforms are needed
to change the sharply antagonistic employment relationship that is inherent within capitalism. Militant
trade unions are thus frequently supported.
History

Industrial relations has its roots in the industrial revolution which created the
modern employment relationship by spawning free labour markets and large-scale industrial
organizations with thousands of wage workers. As society wrestled with these massive economic and
social changes, labour problems arose. Low wages, long working hours, monotonous and dangerous
work, and abusive supervisory practices led to high employee turnover, violent strikes, and the threat
of social instability. Intellectually, industrial relations was formed at the end of the 19th century as a
middle ground between classical economics and Marxism, with Sidney Webb and Beatrice
Webb's Industrial Democracy (1897) being a key intellectual work.[16] Industrial relations thus rejected
the classical econ.

Institutionally, industrial relations was founded by John R. Commons when he

created the first academic industrial relations program at the University of Wisconsin in 1920. Another
scholarly pioneer in industrial relations and labour research was Robert F. Hoxie. Early financial
support for the field came from John D. Rockefeller Jr. who supported progressive labour–
management relations in the aftermath of the bloody strike at a Rockefeller-owned coal mine in
Colorado. In Britain, another progressive industrialist, Montague Burton, endowed chairs in industrial
relations at the universities of Leeds, Cardiff, and Cambridge in 1929– 1930.

Beginning in the early 1930s there was a rapid increase in membership of trade unions
in the United States, and with that came frequent and sometimes violent labour–management
conflict. During the Second World War these were suppressed by the arbitration powers of
the National War Labor Board.
 However, as the Second World War drew to a close and in anticipation of a
renewal of labour–management conflict after the war, there was a wave of creations of new academic
institutes and degree programs that sought to analyse such conflicts and the role of collective
bargaining. The most known of these was the Cornell University School of Industrial and Labor
Relations, founded in 1945. But counting various forms, there were over seventy-five others. These
included the Yale Labor and Management Center, directed by E. Wight Bakke, which began in
1945. An influential industrial relations scholar in the 1940s and 1950s was Neil W.
Chamberlain at Yale and Columbia universities.

In the 1950s, industrial relations was formalized as a distinct academic discipline

with the emergence in the UK of the so-called "Oxford school", including Allan Flanders, Hugh
Clegg, and Alan Fox, Lord William McCarthy, Sir George Bain (all of whom taught at Nuffield
College, Oxford), as well as Otto Kahn-Freund (Brasenose College, Oxford).

Industrial relations was formed with a strong problem-solving orientation[27] that

rejected both the classical economists' laissez-faire solutions to labour problems and the Marxist
solution of class revolution. It is this approach that underlies the New Deal legislation in the United
States, such as the National Labor Relations Act and the Fair Labor Standards Act.

By the early 21st century, the academic field of industrial relations was often
described as being in crisis. In academia, its traditional positions are threatened on one side by the
dominance of mainstream economics and organizational behaviour, and on the other
by postmodernism. In policy-making circles, the industrial relations emphasis on institutional
intervention is trumped by a neoliberal emphasis on the laissez-faire promotion of free markets. In
practice, trade unions are declining and fewer companies have industrial relations functions. The
number of academic programs in industrial relations is therefore shrinking, while fields such as human
resource management and organizational behaviour grow. The importance of this work, however, is
stronger than ever, and the lessons of industrial relations remain vital. The challenge for industrial
relations is to re-establish these connections with the broader academic, policy, and business worlds.
 OBJECTIVES OF THE STUDY
• To establish industrial peace.

• To safeguard the interests of both workers and management.

• To avoid industrial disputes.

• To raise the production capacity.

• To establish industrial democracy.

• To minimise the labour turnover rate and absenteeism.

• To safeguard the workers economic and social interests.

• To contribute to the economic development of the country through productivity.

• To establish a full employment situation.

• To minimise strikes, lockout, Heroes, etc., by providing good working conditions and fair

wages to the workers.

 NEED FOR THE STUDY

Need of Industrial Relations Has raised to defend the interest of workers for adjusting
the reasonable salary or wages. It also helps the workers to seek perfect working conditions for
producing maximum output. Workers/employees are concerned with social security measures through
this. Industrial relations are also needed for achieving democracy by allowing worker to take part in
management, which helps to protect human rights individually. Salaries in India are much more
attractive in Indian subcontinent. As India is having flourishing economy the job opportunities are
emerging and there is huge scope of expansion.
 SCOPE OF THE STUDY

Industrial Relations is a wide-reaching term. Different scholars have expressed

their different views on the scope of industrial relations. According to Dale Yoder, “Industrial relations
incorporate policies related to recruitment, selection, training of workers, personnel management, and
collective bargaining.” According to the International Labour Organisation (ILO), industrial relations
incorporate the relations between state and employers and relations between trade unions and
employers’ associations. According to Richard A Lester, the scope of industrial relations is no longer
limited only to trade unions and industrial management, rather it includes all aspects of labour such as
wages, productivity, social security, management, and employee policies. Trade Union policies also
form part of it.
In a modern organisation, the industrial relations functions are performed by the
Industrial Relations Department. This function is performed under the supervision of the Director of
the Industrial Relations department. In the performance of this function, support is rendered by
different managers and subordinates. Different important functions performed by workers of the
industrial relation department includes:
 METHODOLOGY
Every research work is based on certain methodology, which is a way to
systematically solve the problem or attain its objectives. It is a very important guideline and lead to
completion of any project work through observation, data collection and data analysis.

Selection of sample size:

In order to take a reasonable sample size and not to disturb the functioning of the
organization, a sample size of reasonable strength of the Company has been taken in order to arrive at
the present practices of training in the Company. Accordingly, 100 people have been selected at random
from all the departments of the organization and feedback forms (questionnaire) have been obtained.

Sampling technique used:

The technique of Random Sampling has been used in the analysis of the data.
Random sampling from a finite population refers to that method of sample selection, which gives each
possible sample combination an equal probability of being picked up and each item in the entire
population to have an equal chance of being included in the sample. This sampling is without
replacement, i.e., once an item is selected for the sample, it cannot appear in the sample again.

Data collection:

To determine the appropriate data for research mainly two kinds of data was collected namely primary
& secondary data.

Statistical tools used:

The main statistical tools used for the collection and analyses of data in this study are:

➢ Pie charts
➢ Tables
 LIMITATIONS OF THE STUDY
• Due to some irrelevant behaviors, it was very difficult to collect the data from the respondents.

• The study has been conducted among a few samples.

• Time limitation was a major limitation.

• Busy hours to the employees during the survey.

• All the employees are not available at the time of my visit.

CHAPTER-2
 CHAPTER-2
INDUSTRY PROFILE
INTRODUCTION:

The broad aim of this chapter is to study the Indian Automobile

Sector and the changing forms of innovation in Indian automotive firms over the last few years.
Starting with a broader contextual view of the automotive sector, to give a flavour of the general
industrial environment and their effects on receivables of the Automobile sector. This has shown
remarkable trends over the last two decades. In this chapter we will study the development path of the
industry through the changes in policies and an econometric analysis of quantitative and qualitative
data to understand the nature and extent of capability building processes at the firm level in the
automotive industry.

HISTORY AND GROWTH OF INDIAN AUTOMOBILE SECTOR:

It begins from 1769. The automobile sector is one of the key

factors of the economy having extensive forward and backward linkages with other key factors of the
economy. It contributes about 4 per cent in India's Gross Domestic Product (GDP) and 5 per cent in
India's industrial production. Indian Automobile sales growth rate would be 9.5 % by 2010. Indian
market before independence was seen as a market for imported vehicles while assembling of cars
manufactured by General Motors and other brands. Indian automobile industry mainly focused on
servicing, dealership, financing and maintenance of vehicles.

Later only after a decade from independence Companies

started manufacturing. Since independence the Indian automobile industry faced several challenges
and hurdles like manufacturing capability was restricted by the rule of license and could not be
increased but still it leads to growth and success it has achieved today. Last three decades the total
production of passenger cars was limited. Even the production was limited to three main manufacturers
Hindustan Motors, Premier Automobiles and Standard Motors.

There was no expertise or research & development initiative

taking place. Initially labour was unskilled and had to go through a process of learning through trial
and error. In the 1950’s, The Morris Oxford, became the Ambassador, the Fiat 1100 became the Premier
Padmini. Then in 1960's nearly 98% of the product was developed indigenously. There were significant
changes witnessed by the end of 1970's in the automobile industry. Strong and huge initiatives like
joint ventures for light commercial vehicles did not succeed.
 Till later part of 1980's India by and large followed a socialist
system. The Indian Automobile industry includes two-wheelers, trucks, cars, buses and three wheelers
which play a crucial role in growth of the Indian economy. India has emerged as Asia's fourth largest
exporter of automobiles, behind Japan, South Korea and Thailand. The country is expected to top the
world in car volumes with approximately 611 million vehicles.

The Economic progress of this industry is indicated by the

amount of goods and services produced which gave the capacity for transportation and boost the sale
of vehicles. There is a huge increase in automobile production with the effect by indirectly increasing
the demand for a number of raw materials like steel, rubber, plastics, glass, paint, electronics and
services. The Automobile industry is one of the key functions of economic growth of the nation.
Government has relicensing ofthe sector in 1991 and the subsequent opening up of 100 percent FDI
through automatic route; Indian automobile sector has come a long way.

Today, almost every global auto major has set up facilities in the
country. The world standings for the Indian automobile sector, as per their genre, which are as follows:

• Largest three-wheeler market

• Second largest two-wheeler market
• Tenth largest passenger car market
• Fourth largest tractor market
• Fifth largest commercial vehicle market
• Fifth largest bus and truck segment

The automobiles sector is divided into four segments - two-wheelers

(mopeds, scooters, motorcycles, electric two-wheelers), passenger vehicles (passenger cars, utility
vehicles, multi-purpose vehicles), commercial vehicles (light and vehicles), and three wheelers
(passenger carriers and good earners). This has shown by the following chart of the genre of
automobile sector.

The Indian automobile industry has historically been a good indicator

of how well the economy is doing, as the automobile sector plays a key role in both macroeconomic
expansion and technological advancement. The two-wheelers segment dominates the market in terms
of volume, owing to a growing middle class and a huge percentage of India’s population is young.

Moreover, the growing interest of companies in exploring the rural

markets further aided the growth of the sector. The rising logistics and passenger transportation
industries are driving up demand for commercial vehicles. Future market growth is anticipated to be
fuelled by new trends including the electrification of vehicles, particularly three-wheelers and small
passenger automobiles.

India enjoys a strong position in the global heavy vehicles market as

it is the largest tractor producer, second-largest bus manufacturer, and third-largest heavy truck
manufacturer in the world. India’s annual production of automobiles in FY22 was 22.93 million
vehicles.

India is also a prominent auto exporter and has strong

export growth expectations for the near future. In addition, several initiatives by the Government of
India such as the Automotive Mission Plan 2026, scrappage policy, and production-linked incentive
scheme in the Indian market are expected to make India one of the global leaders in the two-wheeler
and four-wheeler market by 2022.
Automobile clusters:

Mumbai-Pune-Nashik-Aurangabad

Chennai-Bengaluru-Hosur

Delhi-Gurgaon-Faridabad

Kolkata-Jamshedpur

Sanand-Hansalpur-Vithalpur
CHAPTER-3
 CHAPTER-3

COMPANY PROFILE
Origination of Volkswagen:

• On May 28th, 1937, the government of Germany--then under the control of Adolf Hitler of the
Nazi trade union, the German front labour forms a new state-owned automobile company,
then known as Gesellschaft zur Vorbereitung des DeutschenVolkswagens mbH. Later that
year, it was renamed simply Volkswagenwerk, or "The People's car company.”

• Motto:
"Das Auto," or The Car.

• Mission:
To be an industry leader in providing unmatched quality automotive products and services.
• Vision:
To be so effective that we are able to be helpful to others.
• Values:
▪ The Value of Honesty and Integrity
▪ The Value of Individual Responsibility and Accountability
▪ The Value of Unconditional Dedication to Excellence
▪ The Value of Cooperation and Communication
 ▪ The Value of Our People
▪ The Value of Ongoing Improvement
▪ The Value of Being Good Community Citizens
• Commitment:
Volkswagen recently announced plans to invest $193 billion to make every fifth vehicle it sells
electric by 2025.

Subsidiaries:

Audi:

Audi AG is a German automotive manufacturer of luxury vehicles

headquartered in Ingolstadt, Bavaria, Germany. As a subsidiary of its parent company, the Volkswagen
Group, Audi produces vehicles in nine production facilities worldwide.

Škoda:

Škoda Auto a.s., often shortened to Škoda, is a Czech automobile

manufacturer established in 1925 as the successor to Laurin & Klement and headquartered in Mladá
Boleslav, Czech Republic. Škoda Works became state owned in 1948.
Porsche

Dr. Ing. h.c. F. Porsche AG, usually shortened to Porsche, is a German

automobile manufacturer specializing in high-performance sports cars, SUVs and sedans,
headquartered in Stuttgart, Baden-Württemberg, Germany.

SEAT

SEAT S.A. is a Spanish car manufacturer, which sells its vehicles under the SEAT
and Cupra brands. It was founded on 9 May 1950 as a partnership between the Spanish state-owned
Instituto Nacional de Industria, which held a majority stake, Spanish private banks, and FIAT.
LAMBORGHINI

Automobili Lamborghini S.p.A. is an Italian manufacturer of luxury sports cars

and SUVs based in Sant'Agata Bolognese. The company is owned by the Volkswagen Group through
its subsidiary Audi.

BENTLEY

Bentley Motors Limited is a British designer, manufacturer and marketer of

luxury cars and SUVs. Headquartered in Crewe, England, the company was founded as Bentley Motors
Limited by W. O.
DUCATI

Ducati is an Italian motorcycle-manufacturing company that is part of the Ducati

group, and is headquartered in Bologna, Italy. The company is directly owned by Italian automotive
manufacturer Lamborghini, whose German parent company is Audi, itself owned by the Volkswagen
Group.

SCANIA

Scania AB is a major Swedish manufacturer headquartered in Södertälje, focusing

on commercial vehicles—specifically heavy lorries, trucks and buses. It also manufactures diesel
engines for heavy vehicles as well as marine and general industrial applications.
TRATON

Traton SE, known as the Traton Group, is a subsidiary of the Volkswagen Group
and one of the world's largest commercial vehicle manufacturers, with its MAN, Scania, Navistar, and
Volkswagen Caminhões e Ônibus brands. The company also has digital services branded as RIO. In
2020, the group sold around 190,200 vehicles.

MAN ENERGY SOLUTIONS

MAN Energy Solutions SE is a German multinational company based in Augsburg

that produces large-bore gas and diesel engines and also turbomachinery for marine, rail and stationary
applications, as locomotive and marine propulsion systems, power plant applications, and
turbochargers.
FAW

FAW-Volkswagen Automobile Co., Ltd. is a joint venture between FAW Group and
Volkswagen Group which manufactures Audi and Volkswagen marque passenger cars for sale in
China. It was founded on 6 February 1991.

IAV

AV GmbH Ingenieurgesellschaft Auto und Verkehr, abbreviated to IAV

GmbH, is an engineering company in the automotive industry, designing products for powertrain,
electronics and vehicle development.
CHAPTER-4
 CHAPTER-4

THEORETICAL FRAME WORK

The Concepts Behind Industrial Relations

Industrial relations imply the relation between both employer and employees
during the period of employment in an industrial organisation. However, the concept of industrial
relations has a broader meaning. In a broader sense, the term industrial relations refer to the relation
between various unions, state and union, and between employers and government. Relations of all
those associated with the industry may be known as industrial relations.

According to the International Labour Organisation (ILO), industrial relations

deals with relationships between either state and employers and workers organisations or the
relationship between the occupation organisation themselves.
Industrial Relation Meaning
The term industrial relations comprise two words, i.e., ‘industry’ and ‘relations.
The term ‘industry’ refers to any productive activity in the organisation in which the employees are
engaged. On the other hand, the term ‘relations’ refers to the relationship, which exists within the
industry between the management and the employees. The relationship between management and
employees within the organisation within the organisational settings is defined by industrial relations.
Industrial relations emerge directly or indirectly from management-trade union relationships.
Characteristics of Industrial Relation
Following are the significant features of industrial relations:

• Industrial relations are the result of employment relationships in industrial enterprises.

• Industrial relations introduced the concept and method of balancing and cooperating.

• Industrial relations formulate rules and regulations to maintain harmonious relations.

• The intervention of the Government to shape the industrial relation is made through laws,
agreements, rules, charters, etc.

• Industrial relations incorporate both individual relations and collective relations.

• Several parties play a role in industrial relations. The main parties are employees and their
organisation, employers and their association, and government.
Objectives of Industrial Relation
Following are the different objectives of industrial relation.”

• To establish industrial peace.

• To safeguard the interests of both workers and management.

• To avoid industrial disputes.

• To raise the production capacity.

• To establish industrial democracy.

• To minimise the labour turnover rate and absenteeism.

• To safeguard the workers economic and social interests.

• To contribute to the economic development of the country through productivity.

• To establish a full employment situation.

• To minimise strikes, lockout, Heroes, etc., by providing good working conditions and fair
wages to the workers.
Nature of Industrial Relation
• Industrial relations are concerned with the relationship between management and workers.

• Industrial relations safeguard the interest of employees.

• Industrial relations are concerned with the system, rules, and procedures used by unions and
employees to determine the reward for effort and other conditions of employment, safeguard
the interests of the employees and their employer and regulate how employers treat their
employees.

• Industrial relations maintain a balance with employee expectations, employer associations,

trade unions, and other social and economic institutions of societies.

• Industrial relations help in resolving disputes, conflicts, and controversies between labour and
management.
Scope of Industrial Relation
Industrial Relations is a wide-reaching term. Different scholars have expressed
their different views on the scope of industrial relations. According to Dale Yoder, “Industrial relations
incorporate policies related to recruitment, selection, training of workers, personnel management, and
collective bargaining.” According to the International Labour Organisation (ILO), industrial relations
incorporate the relations between state and employers and relations between trade unions and
employers’ associations.
According to Richard A Lester, the scope of industrial relations is no longer
limited only to trade unions and industrial management, rather it includes all aspects of labour such as
wages, productivity, social security, management, and employee policies. Trade Union policies also
form part of it.
In a modern organisation, the industrial relations functions are performed by the
Industrial Relations Department. This function is performed under the supervision of the Director of
the Industrial Relations department. In the performance of this function, support is rendered by
different managers and subordinates. Different important functions performed by workers of the
industrial relation department includes:

• Management of policies and programs of industrial relations.

• Public Relation

• Labour Relation

• Recruitment, Selection, and Placement of labourers.

• To provide medical and health-related services.

• To maintain employment records of the employees.

• Provision of recruitment test, ability test, skill test, and intelligence test.

• Provision of training and education program

Importance of Industrial Relations
• Promotes Democracy: Industrial relations means employing collective bargaining to resolve
issues faced by workers. This collective bargaining is generally employed through cooperation
and mutual agreement amongst all the affected parties, i.e., democracy, management, and
employees’ unions. This enables an organisation to establish industrial democracy, which
 eventually motivates the workers to perform their best to the growth and prosperity of the
organisation.

• High Morale: Good industrial relations enhance the morale of the employees and motivate the
workers to work more efficiently.

• Avoid Conflicts Between Management and Union: Industrial relations minimise issues
between unions and management. This is because industrial relations incorporate setting up
machinery to resolve issues faced by management and employees through mutual agreement
to which both these parties are bound. This results in ignoring any unfair practices that could
lead to major conflicts between employers and trade unions.

• Minimises Wastage: Satisfactory Industrial relations are maintained on the basis of co-
operation and recognition of each other in the department. It helps to minimise wastage of
material, manpower, and costs.

• Economic Growth and Development: Good and harmonious industrial relations result in
increased efficiency and hence prosperity, which in turn minimise turnover and other tangible
benefits to the organisation. This promotes economic growth and development.
Functions of Industrial Relations
The important functions of industrial relations are:

• To establish communication between workers and management to maintain the sound

relationship between the two.

• To establish support between managers and employees.

• To ensure the creative contribution of trade unions to avoid industrial conflicts.

• To safeguard the interests of workers and the management,

• To avoid an unhealthy and unethical atmosphere in an industry.

• To formulate such considerations that may promote understanding, creativity, and

cooperativeness to enhance industrial productivity.

• To ensure better workers’ participation.

Management of industrial relations
If you want to learn more about how to manage industrial relations within your company, here are
some steps you can reference:
1. Meet all team members
Meeting all team members within your company is important if you work in
an HR role because it can be easier to manage internal relationships when you personally know
employees. For example, after meeting and becoming familiar with your colleagues, you may better
understand how to communicate effectively with them if a concern arises. One strategy you can employ
to help you familiarize yourself with your company's internal employees is to have an individual
meeting with them when they first start their position. During these conversations, you can provide
them with background information about the company or their team and allow them to ask you any
questions. This can also help them identify you as someone whom they can contact in case they have
concerns regarding their position or the company.
2. Promote constant communication
Promoting constant communication between internal team members and HR
ensures that employees have the resources they require to perform their jobs effectively. Specifically,
this can provide them with the ability to ask technical questions about company policies and rules. For
example, an employee might have a question about the company's paid time off policy. In this scenario,
the employee may use the communication channel you've provided them to ask you, their question.
Open communication is beneficial because it can empower employees to ask questions whenever they
arise, without having to schedule a formal meeting. Sometimes, this type of constant communication
can occur through email or digital communication tools. If you're interested in using technology for
instant messaging, consider researching different options and selecting the one best suited for your
company's needs.
3. Encourage feedback
Encouraging feedback from internal team members provides employees with
an opportunity to openly share their thoughts and experiences. This might entail asking employees to
submit weekly, monthly or quarterly feedback about the company and their work experience. For
example, you may ask employees about whether they feel supported in their positions or if they feel
as though their duties are clear. These steps can help your company understand where it's providing
teams with effective support and areas that may require adjustments. One tool you can use to collect
feedback is brief surveys, which you can sometimes administer through management technology
systems. Sending them through management systems allows you to automate the feedback messaging.
You can also decide whether you want the feedback you receive to be anonymous. If this is something
you're interested in, consider checking the features on your management systems to determine whether
you can automate the feedback you encourage employees to provide.
4. Emphasize employees' value
Ensuring that your company's internal team members feel valuable is important
because they might be more likely to contribute meaningful feedback if they know their company
actively listens. For example, if most employees submit feedback highlighting a lack of useful training
materials, they may feel as though their comments are valuable if their company provides them with
these resources.
5. Establish boundaries
When managing industrial relations, it's also beneficial to establish boundaries
to ensure there are protocols implemented for handling certain situations. Typically, these protocols
focus on addressing challenging situations and provide a basis for how leaders can manage them. For
example, your company may establish an industrial relations boundary stating that no employee can
employ hateful speech toward a colleague, which also defines the company's criteria for hateful speech.
Boundaries can also act as a guide when working to resolve potential conflicts between employees.
6. Incorporate values
Company values are beneficial to reference when managing industrial relations
because they can help you maintain strong relations with employees that align with the company's
mission. For example, if one of your company's values is teamwork, you might ensure that all
employees have the resources they require to collaborate effectively. Your individual company values
may influence how you manage your industrial relations because not every company has the same
mission or goals.
7. Remain present
Remaining present for your internal team members is an important component of
effective industrial relations management because it provides them with constant support and might
help boost engagement. This support can be technical, such as answering questions or resolving
conflicts. You can also be present for your employees by providing them with interactive opportunities
to familiarize themselves with one another. For example, you might host company activities such as
seasonal events, trivia or team-building competitions. Providing opportunities for employees to engage
with one another may also help boost company morale.
Conclusion
To conclude, industrial relation, also known as an employment relationship, is the versatile academic
field that studies the employment relation, i.e., the complex interaction between employer and
employees, labour/trade union, and employer organisation and state. Also, it is observed that a good
industrial relation increases the efficiency of workers and eventually increases the productivity of an
organisation.
CHAPTER-5
 CHAPTER-5

DATA ANALYSIS & INTERPRETATION

1. What is the distribution of job roles in the organization?

Managers Supervisors Workers Total

No. of 10 15 75 100
Respondents
Percentages 10% 15% 75% 100%

Distribution of job roles in volkswegan

10%

15% Managers
Supervisors
Workers

75%

Interpretation:

In Volkswagen training will be most effective for the managers because they
appoint less no of managers to manage the workers. Here for 100 respondents, there are 10 mangers
and 15 supervisors to manage 75 employes. In Volkswagen this vary for every department.
 2. How do employees perceive their job satisfaction levels?

High Medium Low Total

satisfaction Satisfaction Satisfaction
No. of 40 30 30 100
Respondents
Percentages 40% 30% 30% 100%

Satisfaction Levels

30%
40%
High Satisfaction
Medium satisfaction
Low Satisfaction
30%

Interpretation

In Volkswagen the employes are not much satisfied with their job, salary, etc., there
may be many reasons for did satisfaction that was raised among them that should be focused by the
management and should solve. Here the employees of Volkswagen 40% are highly satisfied, 30% are
Mediumly Satisfied and 30% are not satisfied.
 3.What is the distribution of employee tenure in the organization?

Less than 1 1-5 5-10 Total

year
No. of 20 50 30 100
Respondents
Percentages 20% 50% 30% 100%

Employee tenure

20%
30%
Less than one year
1-5 years
5-10 years

50%

Interpretation
Employee tenure depends on the satisfaction levels of the employee If the
employee is satisfied, he will stay with the organization if he is not satisfied, he will not stay with the
organization. Here the employee tenure are less than 1 year we have 20%, 1-5 years we have 50%
employees and finally 5-10 years we have 30% of employees
 4. How are employees distributed across different departments?

HR Finance Operations Sales Total

No. of 15 20 40 25 100
Respondents
Percentages 15% 20% 40% 25% 100%

Employees distribution across different

departments

15%
25%
Hr

20% Finance
Operations

40%

Interpretation
Volkswagen appointment of employees is very effective among different
departments it is very appropriate way. In Volkswagen the splitting of employees in organization are
15% in HR, 20% in Finance,40% in Operations and finally 25% in sales.
 5. What is the breakdown of employees based on their educational
Qualifications?

High school Bachelor’s Master’s Total

Degree Degree
No. of 20 45 35 100
Respondents
Percentages 20% 45% 35% 100%

Employee educational status

20%
35% Highschool
Bachelor's Degree
Master's Degree

45%

Interpretation
Employee educational status in Volkswagen is 20% with Highschool qualification,
45% with Bachelor’s Degree qualification in different fields and remaining 35% with Master’s Degree
qualification in Different fields.
 6. How many employees are involved in labor unions?

Union members Non-union Total

members
No. of 25 75 100
Respondents
Percentages 25% 75% 100%

Employees involvement in Labor unions

25%

Union Members
Non-Union Members

75%

Interpretation
The employees/workers in Volkswagen are mostly not in the union very few are
joined in the unions that may affect the rights of the employees/workers. There are 25% of employees
are in the unions and 75% members are not in unions.
 7. What is the distribution of employee engagement levels?

High Medium Low Total

Engagement Engagement Engagement
No. of 35 50 15 100
Respondents
Percentages 35% 50% 15% 100%

Engagement levels of workers

15%

35% High Engagement

Medium Engagement
Low Engagement

50%

Interpretation
Engagement levels of the employee is also Plays a very effective role in the
organization. When the employee is engaged in his work, he may get effective results in work and that
helps to get high performance results. The engagement levels of the employees in Volkswagen are
High Engagement is 35%, Medium Engagement is 50% and low engagement is 15%.
 8. How does employee perceive the effectiveness of the grievance handling
process?

Highly Moderately Ineffective Total

Effective Effective
No. of 25 60 15 100
Respondents
Percentages 25% 60% 15% 100%

Effectiveness in grievance handling

15%
25%
Highly Effective
Moderately Effective
Ineffective

60%

Interpretation
Every company need to give more effective training in grievance handling that may
also to get healthy working conditions. Employees in Volkswagen 25% are highly effective, 60% are
moderately effective and 15% are ineffective in grievance handling.
 9. What is the distribution of employee’s perception about management
employee communication?

Excellent Satisfactory Poor Total

No. of 30 50 20 100
Respondents
Percentages 30% 50% 20% 100%

Employee perception about employee and

manager communication

20%
30%
Excellent
Satisfactory
poor

50%

Interpretation
In Volkswagen employee perception about employee and manger communication
many employees feel satisfied with the management 30% employees are Excellent, 50% employees
are Satisfied and 20% employees are Poor with the communication with management.
 10. What is the breakdown of employee performance ratings?

Outstanding Exceeds Meets Needs Total

Expectations Expectations Improvement
No. of 20 30 40 10 100
Respondents
Percentages 20% 30% 40% 10% 100%

Employee performance rating

10%
20%

Outstanding
Exceeds Expectations
40% Meets Expectations
30%

Interpretation
Employee Performance rating in Volkswagen is 20% employee’s performance
rating is outstanding, 30% employees Exceeds Expectations, 40% employees Meets Expectations,
10% employees Need Improvement.
 11. How does management maintain the effective working conditions?

Highly Moderately Ineffective Total

Effective Effective
No. of 25 60 15 100
Respondents
Percentages 25% 60% 15% 100%

Effective working conditions

15%
25%
highly effective
Moderately Effective
Ineffective

60%

Interpretation
The management of Volkswagen maintaining the working conditions that have the
support of 25% employees are Highly Satisfied, 60% employees ae Moderately Satisfied and
remaining 15% employees are Ineffective.
 12. How does the distribution of employee opinions about work-life balance?

Excellent Satisfactory Poor Total

No. of 35 50 15 100
Respondents
Percentages 35% 50% 15% 100%

Employee opinions about work-life balance

15%

35% Excellent
Satisfactory
Poor

50%

Interpretation
In Volkswagen the Employee opinions about work-life balance the excellent
review is given by 35%, Satisfactory review is given by 50% and poor review is given by 15%
employees.
 13. Employee Involvement in disciplinary actions?

Faced Disciplinary No Disciplinary Total

Actions Actions
No. of 15 85 100
Respondents
Percentages 15% 85% 100%

Invovement of disciplinary actions

15%

Faced Disciplinary Actions

No Disciplinary Actions

85%

Interpretation
The company should involve everyone in the disciplinary actions as so, that
Volkswagen employees of 15% are faced disciplinary actions and 85% employees are not disciplinary
actions. Disciplinary actions are very crucial in maintaining the healthy relations among the employees
 14. Breakdown of employee opinions about career development opportunities?

Excellent Satisfactory Limited Total

No. of 40 45 15 100
Respondents
Percentages 40% 45% 15% 100%

Employee Opinions about career

development

15%

40% Excellent
Satisfactory
Limited
45%

Interpretation
The employee opinions about the career development opportunities through the
Volkswagen 40% of employees given excellent review, 45% employees are satisfied and remaining
15% are not much satisfied
 15. How does organization maintain Labour relations management?

Effective Satisfactory Not much Total

better
No. of 40 45 15 100
Respondents
Percentages 40% 45% 15% 100%

Maintain labor relations management

15%

40% Effective
Satisfactory
Not much better

45%

Interpretation

Volkswagen maintains the best labor relations that have a good impression with the
output and healthy environment. 40% Employees reviewed with Effective relationship, 45%
employees are reviewed with Satisfactory about the labor relations management and remaining 15%
reviewed with Not much better relations.
CHAPTER-6
 Chapter-6
FINDINGS

• The majority of employees communicate with staff members but the relationship is not

extended to closeness.

• As a result, the majority employees expressed an average feeling regarding staff members.

• The relationship is weak between the staff & workers.

• The working conditions are moderately satisfied by employees.

• The grievances handling is not much effective.

• Poor infrastructure and lack of peaceful conditions in workplace.

• No employee s interested in disciplinary actions.

 SUGGESTIONS

• Motivational sessions should be conducted at shop floor level.

• In order to improve Industrial Relations, there should be certain and regular meeting between

workers and management, work place meetings.

• Better communication between staff and workers.

• Condition of welfare facilities like toilet, drinking water, hygienic working condition should

be improved.

• There should be direct feedback of problem faced at work places.

• Maintenance of workplace should be improved; better medical facility should be provided as

per the employee needs.

• Management should motivate and involve every employee in disciplinary actions.

 CONCLUSION
I conclude that although Volkswagen is largest moto vehicle
manufacturing company in the world which has its own advantages like brand value, diversified brand
portfolio and it doesn’t have any drawbacks. Volkswagen is the company which have its own car and
heavy vehicle manufacturing companies that all the brands are world’s top brands. Even though
Volkswagen conducts effective training programs and healthy working conditions and many more
facilities at work place for their employees but it requires some adaptive changes in the employee
development opportunities, some more effective management of working conditions and facilities to
employees to make the employees more effective in their work that may make Volkswagen to get
competitive advantages and can make it more successful than now.
CHAPTER-7
 Chapter-7
BIBILOGRAPHY
S. Name of the book Name of the Author Year
No publisher
1 Human Resource Management, Text Excel Books V.S.P. Rao 2006
and Cases
2 Human Resources Development: Akansha Harish Chandra 2006
Theories and Practices Publishing
3 Essentials of Human Resource Himalaya P. Subbarao 1999
Management and Industrial Relations Publishing House
4 Industrial Relations and Labour Laws Mc Graw Hill Piyali Ghosh and 2017
education Shefali Nandan
5 Case studies on Industrial Relations Bharti Publications Dr. Pooja Aggarwal 2023

I referred this Volkswagen’s information from:

➢ Wikipedia
➢ Volkswagen.co.in
 QUESTIONARIES

1. What is the distribution of job roles in the organization?

a) Managers
b) Supervisors
c) Workers
2. How do employees perceive their job satisfaction levels?
a) High Satisfaction
b) Medium Satisfaction
c) Low Satisfaction
3. What is the distribution of employee tenure in the organization?
a) Less than 1 year
b) 1-5 years
c) 5-10 years
4. How are employees distributed across different departments?
a) HR
b) Finance
c) Operations
d) Sales
5. What is the breakdown of employees based on their educational
Qualifications?
a) High School
b) Bachelor’s Degree
c) Master’s Degree
6. How many employees are involved in labor unions?
a) Union Members
b) Non-Union Members
7. What is the distribution of employee engagement levels?
a) High Engagement
b) Medium Engagement
c) Low Engagement
8. How does employee perceive the effectiveness of the grievance handling
process?
a) Highly Effective
b) Moderately Effective
c) Ineffective
9. What is the distribution of employee’s perception about management
employee communication?
a) Excellent
b) Satisfactory
c) Poor
10. What is the breakdown of employee performance ratings?
a) Outstanding
b) Exceeds Expectations
c) Meets Expectations
d) Needs Expectations
11. How does management maintain the effective working conditions?
a) Highly Effective
b) Moderately Effective
c) Ineffective
12. How does the distribution of employee opinions about work-life balance?
a) Excellent
b) Satisfactory
c) Poor
13. Employee Involvement in disciplinary actions?
a) Faced Disciplinary Actions
b) No Disciplinary Actions
14. Breakdown of employee opinions about career development opportunities?
a) Excellent
b) Satisfactory
c) Limited
15. How does organization maintain Labour relations management?
a) Effective
b) Satisfactory
c) Not Much Better