Introduction of Industrial Relation

CONTENTS CHAPTER – 1 • • • • • • • • •

Introduction of IR Definition Objectives of IR Components of IR Aspects of IR Features of IR Factors influencing IR Methodology Importance of the study

CHAPTER – 2 • • • • • • • • • •

Company profile of SAIL Major units of SAIL SAIL Today Rourkela Steel Plant Stages of development of RSP Special features of RSP Major units of RSP Product mix of RSP Products and its applications Organization chart of RSP

CHAPTER – 3 • • • •

Industrial Relation in RSP Workers participation in Management Managem ent Grievance Machinery Settlement Machineries Conciliation • Arbitration •

Dayananda Sagar Business Academy

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•

• • • • • • • • •

Adjudication

Joint Committees in RSP Central Safety Committee • Central Consultative • Canteen Managing Committee • Works Standing Order Suggestion Scheme Awards for Long Term Services Trade Unions Industrial Discipline New Trends of Industrial Relation Mass contact exercise Employee relation and employee services at SAIL, RSP Manpower summary of RSP

CHAPTER – 4 • •

Questionnaires for Workers and Management Data Analysis and Interpretation

CHAPTER – 5 • • • •

Effects of poor Industrial Relation Problems of Industrial Relation A view from Workers and Management Suggestions





















•

Bibliography









































INTRO DUCTION DUCTI ON OF O F INDUSTRIAL INDUST RIAL RELATION

The relationship between Employer and employee or trade unions is called Industrial Relation. Harmonious relationship is necessary for both employers and employees to safeguard the interests of the both the parties of the production. In order to maintain good relationship with the employees, the main functions of every organization should avoid any dispute with them or settle it as early as possible so as to ensure industrial peace and higher productivity. Personnel management is mainly concerned with the human relation in industry because because the main theme of personnel management management is to get the work done by the human power and it fails in its objectives if good industrial relation is maintained. In other words good Industrial Relation means industrial peace which is necessary for better and higher productions. A man working in a healthy atmosphere can produce more. Within an industry there is a hierarchy among the people. From the very beginning there is always a gap between have and have-nots. In order to bring harmonious relation between the management, workers and unions for the sake of industry as well as for the nation, positive relation within an indu indust stry ry is expe expect cted. ed. Ther Theref efor oree the the term term "INDUSTRIAL RELATION” into RELATION” came into limelight. Industrial Relation is a major force which influences the social, political and economic development development of a country .Managing .Managing industrial industrial relations relations is a challenging challenging task because because it deals with a highly complex, fast developing, ever changing and expanding field. There are certain certain factor factorss such such as composi compositio tion n of workin working g class class,, work work environm environment ent,, sociosocioeconomic status of the workers and their attitude to work, management's ideology, role of the state, thinking of the community etc which have a considerable bearing on the state of





















Keeping in view the different aspects of industrial relations, an attempt has been made in this project to provide a multi dimensional approach to the subject.

DEFINITION :•

According to TEAD and METCALFE:-

"Industrial Relation are the composite result of the attitudes approaches of employers and employ employees ees toward towardss each other other with with regard regard to planni planning, ng, superv supervisi ision, on, direct direction ion 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. •

According to DALE YODER:-

"Industrial Relation is a whole field of relationship that exists because of the necessary collaboration of employees in the employment process of an industry ." •

According to ALLAN FLANDER:-

"The "The subject subject of indust industria riall relati relations ons deals deals with with certai certain n regula regulated ted or instit instituti utional onalized ized relationships in industry ." •

According to Professor CLEGG:-

"Industrial Relations are the rules governing employment together with the ways in which the rules are made and changed and their interpretation and administration." From the above definitions we find Industrial Relations as:i)

The term term stoo stood d for for manpowe manpowerr of of the the enterpr enterprise ise i.e. i.e. the the empl employ oyee ee – employe employer r























ii)

Later on the the relations relations get created created at at diff different erent levels of the organizati organization on by the diverse, complex composite needs, aspirations, attitudes and approaches among the participants.

iii)

The parties parties actively actively associated associated with any industrial industrial relation relation are the workers, workers, the the management, the organizations of workers and manage ments, and the State.

iv)

It denotes all types of inter - group and intra -group relations within industry, industry, both formal as well as informal.

OBJECTIVES OF INDUSTRIAL RELATION :Apart from the primary objective of bringing about sound and healthy relations between employers and employees, Industrial Relation aims at:A.

To safeguard the interest of labor and management by securing the highest level of mutual mutual unders understand tanding ing and good-w good-will ill among among all those those sectio sections ns in the indust industry ry which participate in the process of production.

B.

To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country.

C.

To raise raise productivity productivity to a higher level in an era era of full employment employment by lessening lessening





















F.

To establish government control of such plants and units as are running at a loss or in which productions has to be regulated in the public interest.

G.

Improv Improveme ements nts in the the econom economic ic condi conditio tions ns of of worke workers rs in in the the existi existing ng stat statee of industrial managements and political government.

H.

Control exercised by the state over industrial undertaking with a view to regulating production and promoting harmonious industrial relations.

I.

Socializati Socializations ons or rationaliza rationalization tion of industries industries by making he state itself itself a major employer

J.

Vesting of a proprietary interest of the workers in the industries in which they are employed.

COMPONENTS OF INDUSTRIAL SYSTEM:I)

PARTICIPANTS: The participants in the industrial relations sphere are composed

of duly recognized representatives of the parties interacting in several roles within the system. It includes a.

Employee Employee Relation Relation - It includ includes es the comple complex x relati relations onship hip among among the

employees.





















3)

STRUCTURE: The structure consists of all forms of institutionalised behaviour

in a system. The structure may include collective procedures, grievance settlement prac practi tice cess etc. etc. legal legal enact enactme ment ntss rele releva vant nt to powe powerr inte intera ract ctio ions ns may also also be considered to be a part p art of the structure. 4)

systems analysis, analysis, it is possible possible to find find an issue which one BOUNDARIES: In systems participant is totally indifferent to resolving while, at the same time, the other participant is highly concerned about resolution of the same. These issues may serve to delimit systems boundaries.

ASPECTS OF INDUSTRIAL RELATION The main aspects of Industrial Relations are:i.

Labor Relations, i.e. relations between union and management.

ii.

Employer-employees relations, i.e. relations between management and employees.

iii.

Group relations, i.e. relations between various groups of workmen.

iv. iv.

Community or Public relations, i.e. relations between industry and society. society.

v.

Promotions and development of healthy labor-managements relations.

vi.

Maintenance of industrial peace and avoidance of industrial strife





















FEATURES FEATURES OF INDUSTRIAL RELA REL ATION A few notable features pertaining to Industrial Relations are as under: 1.

Indust Industria riall Rela Relatio tion n do do not not emer emerge ge in vacuum vacuum they they are born born of of empl employm oyment ent relationship in an industrial setting. Without the existence of the two parties, i.e. labor and management, this relationship cannot exist. It is the industry, which provides the environment for industrial relations.

2.

Industrial Relation are characterized by both conflict and co-operations. This is the basis of adverse relationship. So the focus of Industrial Relations in on the study of the the atti attitu tudes des,, rela relati tions onshi hips ps,, prac practi tice cess and and proc procedu edure re devel develope oped d by the the contending parties to resolve or at least minimize conflicts.

3.

As the labor and management management do not operate in isolations isolations but are parts of large large system, so the study of Industrial Relation also includes vital environment issues like like tech techno nolo logy gy of the the work workpl place ace,, count country ry's 's soci socioo-ec econo onomi micc and and polit politic ical al environment, nation's labor policy, attitude of trade unions workers and employers.

4.

Industrial Industrial Relation Relation also involve involve the study of conditions conditions conductive conductive to the labor, labor, managements co-operations as well as the practices and procedures required to elicit the desired co-operation from both the parties.





















FACTORS INFLUENCING INDUSTRIAL RELATION : The concepts of Industrial Relations are very broad-based, drawing heavily from a variety of discipl discipline ine like like social social science sciences, s, humanit humanities ies,, behavio behavioral ral science sciences, s, laws laws etc. etc. In fact, fact, Industrial Relation encompasses all such factors that influence behavior of people at work. A few such important factors are details below: 1.

Institution: It includes government, employers, trade unions, unions federations or

associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems. 2.

Characters: It aims to study the role of workers unions and employers' federations

offici officials als,, shop shop stewar stewards, ds, indust industria riall relati relations ons offic officers ers / manager manager,, mediat mediator or / conciliators / arbitrator, judges of labor court, tribunal etc. 3.

Methods: Focus on collective collective bargaining, bargaining, workers' workers' participati participation on in the Industrial Industrial

Relation schemes, discipline procedure, grievance re-dressal machinery, dispute sett settle leme ment ntss

mach machin iner ery y

work workin ing g

of

clos closed ed

shop shops, s,

unio union n

reor reorga gani niza zati tion on,,

orga organi niza zati tions ons of prot protes ests ts thro throug ugh h meth method odss like like revi revisi sion onss of exist existin ing g rule rules, s, regulations, policies, procedures, hearing of labor courts, tribunals etc. 4.

Contents: Includes matter pertaining to employment conditions like pay, hours of

works, leave with wages, health, and a nd safety disciplinary actions, lay-off, dismissals dismissals























tendency for militancy to continue. Or once harmonious relationship is established there is a tendency for harmony to continue. 6.

Economic Economic satisfaction satisfaction of workers: Psychologists recognize that human needs

have a certain priority. Need number one is the basic survival need. Much of men conducted are dominated by this need. Man works because he wants to survive. This is all the more for underdeveloped countries where workers are still living under subsistence conditions. Hence economic satisfaction of workers is another important prerequisite for good industrial relations. 7.

Social and Psychological satisfaction: Identifying the social and psychological

urges of workers is a very important steps in the direction of building good industrial relations. A man does not live by bread alone. He h61s several other needs besides his physical needs which should also be given due attention by the employer. An organization is a joint venture involving a climate of human and social relationships wherein each participant feels that he is fulfilling his needs and





















workers to produce more, persuade management to pay more, mobilize public opinion on vital labor issues and help Government to enact progressive labor laws. 10.

Nego Negoti tiat atin ing g skil skills ls and and atti attitu tude dess of mana manage geme ment nt and and work worker erss : Both

management and workers' representation in the area of industrial relations come from a great variety of backgrounds in terms of training, education, experience and attitudes. These varying backgrounds playa major role in shaping the character of industrial relations. Generally speaking, well-trained and experienced negotiators who are motivated by a desire for industrial peace create a bargaining atmosphere conducive to the writing of a just and equitable collective agreement. On the other hand, ignorant, inexperienced and ill-trained persons fail because they do not recognize that collective bargaining is a difficult human activity which deals as much in the emotions of people as in their economic interests. It requires careful preparation and top -notch executive competence. It is not usually accomplished by some easy trick or gimmick. Parties must have trust and confidence in .each





















start; 2) It provides a formalized means to the workers and employers to give emotional release to their dissatisfaction; and 3) It acts as a check and balance upon arbitrary and capricious management action. 12.

Better education: With rising skills and education workers' expectations in respect

of rewards increase. It is a common knowledge that the industrial worker in India is generally illiterate and is misled by outside trade union leaders who have their own axe to grind. Better workers' education can be a solution to this problem. This alone can provide worker with a proper sense of responsibility, which they owe to the organization in particular, and to the community in general. 13.

those indust industrie riess where where the costs costs consti constitut tutee a major major Nature Nature of industr industry: y: In those proportion of the total cast, lowering down the labor costs become important when the product is not a necessity and therefore, there is a little possibility to pass additional costs on to consumer. Such periods, level of employment and wages rise in decline in employment and wages. This makes workers unhappy and destroys





















METHODOLOGY: There are various methodologies in order to complete this project. The methodology which has been adopted in this subject works are as follows: a)

Questionnaire :

To know the opinion about the Industrial Relation system in Rourkela Steel Plant (SAIL), questio questionnai nnaires res has been been made made for executi executives ves,, unions unions -repre -represen sentat tative ive and worker workerss separately. separately. This was supplied to 50 executives, union representatives and 200 workers. b)

Records :

The secondary source of getting facts related to project work has been collected from the following: o

Statistical statement





















IMPORTANCE OF THE STUDY: The importance of this study is:i)

To find out the internal internal industrial industrial relation relation system system between the management, management, the worker and union.

ii)

To find out the causes which makes industrial relations positive or negative.

iii)

To find out the industrial peace and harmony that is going on within the premises of R.S.P.

iv)

To find find out the the facil faciliti ities es given given to to the work worker er which which moti motivat vatee the work workers ers to to sacrifice their blood and sweat for increasing the productivity. productivity.

v)

To find find out out the the ways ways to help help in buildi building ng the the posit positive ive indust industria riall relat relation ionss for for workers and management for development of the interest of R.S.P. as well as the











































COMPANY PROFILE Steel Authority of India Limited (SAIL) is the leading steel-making company in India. SAIL SAIL trace tracess its its orig origin in to the the form format ativ ivee years years of an emer emergi ging ng natio nation, n, Indi India. a. Afte After r independence the builders of modern India worked with a vision -to lay the infrastructure for rapid industrialization of the country .It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway railway,, automo automotiv tivee and defence defence indust industri ries es and for sale sale in export export market markets. s. Ranked Ranked amon amongs gstt the the top top ten ten publi publicc sect sector or compan companie iess in Indi Indiaa in term termss of turn turnov over er,, SAIL SAIL





















(CET), Management Training Institute (MTI) and Safety Organisation at Ranchi. Our captive mines are under the control of the Raw Materials Division in Kolkata. The Environment Management Division and Growth Division of SAIL operate from their headquarters in Kolkata. Almost all our plants and major units are ISO Certified.

MAJOR UNITS OF SAIL: A.

INTEGRA TED STEEL PLANTS

1.

Bhilai Steel Plant (BSP) in Chhattisgarh





















ROURKELA ROUR KELA STEEL PLANT PLAN T Rourkela Steel Plant (RSP), the first integrated steel plant in the Public Sector in India, was set up with German collaboration with an installed capacity of 1 million tonnes. Subsequently, the capacity was enhanced to 1.9 million tonnes. The plant was modernized in the mid 1990s with a number of new units with state-of -the-art facilities. Most of the old units have also been revamped for effecting substantial improvement in the quality of products, reducing the cost and ensuring cleaner environment.





















STAGES OF DEVELOPMENT OF RSP: 1953



Agreement signed with KRUPP -DEMAG for Rourkela

1958



First Coke Oven Battery lit at Rourkela

1959



First Blast Furnace inaugurated Blooming and Slabbing Mill commissioned First L.D. Converter commissioned























1996



Inauguration of new dividing line, new BOF shop and new Sinter Plant

SPECIAL FEATURES OF RSP:























Iron Ore Lumps, 1.5 MT of Iron Ore Fines, 1.6 MT of fluxes and other materials viz. Tin, Zinc, Aluminium and Ferroalloys constitute RSP's input requirements.























E) SMS-I

Steel Melting Shops .























•

Roughing/sizing stand R OVO a with automation

•

Automated coil box























pipe consumers. This plant has been recently upgraded to enable it to produce API grade pipes.











































































































































































































































































































































































































































































































































































































6.

Is the the man manag agem emen entt able able to sati satisf sfy y the the wor worke kers rs in RSP? RSP? Question

Number of Respondents Percentage

Almost

18 36

To some Extent

29

Not at all

3

58

6

Chart – 6

Almost To some extent Not at all

Interpretation

From the above chart it is justified that most of the workers are well satisfied with the management in RSP.





















7.

Are Are you you gett gettin ing g sat satiisfact factio ion n out out of your our job job?? Question


To Great Extent

To some Extent

37 74

11 22

Not at all

2 4

Chart – 7

To Great Extent To some extent Not at all

Interpretation

About 74 percent of employees are satisfied with their job to a great extent and 22 percent of employees are satisfied with their job to small extent.





















8.

Do you think hink ther theree is is ove overr empl employ oyme ment nt in RS RSP? Question


To Great Extent

2

To some Extent

8 4

Not at all

40 16

80

Chart – 8

To Great Extent To some extent Not at all

Interpretation

About 80 percent of employees emplo yees are of opinion that there is no over o ver employment.





















9.

Do you you feel eel wor worker kers par partici ticipa pati tion on in mana manage geme ment nt is a heal healtthy prov proviision sion for for bringing harmonious relationship within Industry? Question

Yes

Number of Respondents

46

Percentage

No

4

92

8

Chart – 9

100 80 60 Number of of Respondents pondents 40

Percentage

20 0 Yes

No

Interpretation

It is clear from above that about 92 percent of employees believe that worker participation in management is a healthy provision for bringing harmonious relationship within an industry.





















10.

Do you you disc discus usss with with the work worker erss and take take thei theirr sugges suggesti tions ons to to solve solve the the probl problem emss and other matters? Question


Yes

34 68

Sometimes

No

14

2

28

4

Chart – 10

Yes Sometimes No

Interpretation

Out of 50 respondents about 34 respondent have discussion with the workers related any problem or their suggestion, rest 14 sometimes have discussion at the time of their need.























11.

Do you you think hink that that wor worker kers of RSP RSP are gett gettiing grea greatt bene benefi fits ts in relat relatio ion n to management? Question

Yes


39

Percentage

No

11

78

22

Chart – 11

80 70 60 50 40

Number of of Respondents pondents

30

Percentage

20 10 0 Yes Interpretation

No





















12.

Do you you have have a good good unde underst rstandi anding ng of of this this organi organizat zation ion’’s goals goals and objecti objectives ves Question

Yes


No

43

Percentage

7

86

14

Chart – 12

90 80 70 60 50 40 30 20 10 0

Number of of Respondents pondents Percentage

Yes

No

Interpretation

About 86 percent of the employees feel that they have a good understanding of this









































EEF FCTS OF O F POOR INDSTRI IND STRIAL AL RELATIONS Poor Industrial Relation produces highly disquieting effects on the economic life of the country. country. We We may enumerate the ill-effects of poor Industrial Relations as under: 1.

Mult Multip ipli lier er effe effect cts: s: Mode Moderrn indus ndustr try y and and for that that matt matter er mode moderrn econ econom omy y are are interdependent. Hence although the direct loss caused due to industrial conflict in any one plant may not be very great, the total loss caused due to its multipliers effect on the total economy is always very great.

2.

Fall in normal tempo: poor Industrial Relations adversely affect the normal tempo of work so that work far below the optimum level. Costs build up. Absenteeism and labor turnover increase. Plants discipline breaks down and both the quality and quality of production suffer .

3.

Resistance Resistance of change: Dynamic Dynamic industrial industrial situation situation calls for change more or less continuously. Methods have to be improved. Economics have to be introduced. New products have to be designed, produced and put in the market. Each of these tasks involves a whole chain of changes and this is resisted bitterly if these are industrial conflict.

4.

Frustration and social cost: every man comes to the work place not only to earn a living. He wants to satisfy his social and egoistic needs also. When he finds





















PROBLEMS OF INDUSTRIAL INDUS TRIAL RELATION: REL ATION:  Due to surplus of manpower in Rourkela Steel Plant labour productivity could not be

achieved at the desired level which creates some problems in Industrial Relation situation of RSP.  A good number of employees had been recruited earlier are not fit for that posts in

which they are in now so they are unable to understand the practical scenario, which become an obstacle in Industrial Relation of RSP .  Multiplicity of trade unions also poses a problem.

Someti time mess  Some

terr terrib ible le situ situat atio ions ns creat createe due due to some some misu misunde nders rsta tandi nding ng betw betwee een n

management and worker by Trade Union.  Rigid labour legislation delay in disposal of grievances causes harassment for the

workers. A VIEW FROM WORKERS AND MANAGEMENT

We have conduct conducted ed an interv interview iew through through questio questionnai nnaire re method method and collec collected ted some some information regarding suggestions to improve healthier Industrial Relation in RSP from worker management and union as well.























Management suggests that:

There should be proper co-operation between management and workers. Workers should help the management in decision making process so that the Industrial Relation situation and productivity of Rourkela Steel Plant is better possible.





















SUGGESTIONS  Both management and unions should develop constructive attitudes towards each

other .  All basic policies and procedures relating to Industrial Relation should be clear to

everybody in the organization and to the union leader. The personnel manager must make certain that line people will understand and agree with these policies. po licies.  The personnel manager should remove any distrust by convincing the union of the

company's integrity and his own sincerity and honesty. Suspicious, rumors and doubts should all be put to rest.  The personnel manager should not vie with the union to gain workers' loyal to

both both the organi organizat zation ion.. Several Several research research studie studiess also also confirm confirm the idea idea of dual dual alle allegi gian ance. ce. Ther Theree is stro strong ng evid eviden ence ce to disc discar ard d the the belie belieff that that one one can owe owe





















orkers should should be given given chances chances to show show their their creativ creativity ity and talent talent before before  Workers management and must be rewarded for that.  The union for their interest workers often shows that the management is superior

and there is a large gap between them so this type of wrong notion should be confirmed to them.  The management should give fair and prompt decision to the workers so that they

don't favour to knock the doors of court of law.  The workers must also be co-operative to their management and help them in

achieving the profit p rofit of the company compan y.









































CONCLUSION The study that has been conducted has resulted in justifying a wide scope for further research and analysis in this field within the organization. It has been witnessed that RSP, has grown by leap and bounds and its facilities and policies are world class in comparison to other steel company in India. Before the year 2002, Rourkela Steel Plant suffered continuously from huge loss and was unable to provide maximum benefits to its workers. There by increasing the quality and quantity of production this organisation tried to create its existence in this competitive competitive steel world. world. After this the management management and worker both sweat for the sake of Industry as well as for themselves. From last 3 years RSP is gaining profit and is doing well for the betterment of the employees like extending its welfare and health facilities to a greater extent. A very healthy and friendly atmosphere is developed within its premises. The workers directly interact with the management for their grievances and other matters through Mass Contact Exercise. Even the management is looking forward with some proactive actions























RSP is considered to be the turning point in the history of Indian Steel Company. In the major leap forward, RSP has not adhered the need for self sufficiency in steel but also given the country a technological technological edge in producing producing this strategic metal as per the world standard. standard. With consistent consistent track record record in capacity capacity utilization utilization,, technology technology absorption, quality assurance, export performance and posting of profits, RSP is a bright example of India' India'ss indust industria riall capacit capacity y. And keepin keeping g the presen presentt scenari scenario o in the view view it can be concluded that RSP is the torch bearer among all sections in the never ending path of success.





















BIBLIOGRAPHY

During my summer training period I have collected the required information’s from the following books and journals: 1.

Industrial Rela elation (A.M. Sharm arma)

2.

Indu Indusstria triall Rel Relat atiion (C.S. C.S.D. D. Venka enkatt Rat Ratna nam m)

Introduction of Industrial Relation

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