Challenges And Effectiveness Of Industrial Relation


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International Journal of Marketing, Financial Services & Management Research________________________ ISSN 2277- 3622 Vol.2, No. 6, June (2013) Online available at www.indianresearchjournals.com
CHALLENGES AND EFFECTIVENESS OF INDUSTRIAL RELATION ENVIRONMENT IN INDIAN INDUSTRIES: A STUDY ON ROURKELA
STEEL PLANT, ROURKELA, ODISHA, INDIA
NIBEDITA NANDA*; PROF. JAYA KRUSHNA PANDA**
*ASST. PROF. DAMITS, ROURKELA-42,
ODISHA, INDIA
**PROF. & H.O.D OF BUSINESS ADMINISTRATION, UTKAL UNIVERSITY, BHUBANESWAR ODISHA, INDIA
_____________________________________________________________________________________
ABSTRACT In today‟s dynamic business environment, every organization wants to be a successful organization. It cannot be possible without Human Resource (HR). The most important asset i.e. Human Resource (man power) is known as life blood of any organization. The success of any organization depends upon the performance of their Human Resource. If question arises to find out the most important difference between ordinary organization and successful organization, the answer would be their HR. The organization also wants quality people. The greatest challenge before every organization is to recruit right people in right place. HR is the factors. Employee and Employer both are important. They are the two sides of the same coin. One cannot operate without the services of the other. The main purpose of this study is to observe the industrial relation operation and satisfaction level of the employees, to observe the different welfare schemes provided by the industry.
KEYWORDS: Challenges of Industrial Relations, Effectiveness of Industrial Relations, Industrial Relations Environment
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Introduction Industrial Relations is a dynamic socio-economic process.It a “designation of a whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of industry”. It is not the cause but an effect of social, political and economic forces. In order to understand the issues and problems associated with industrial relations, it is desirable to study its various evolutionary phases. Practically speaking, the growth of industrial relations in India is in no way different from that of other parts of the globe. The various stages of industrial relations progressed from primitive stage to factory or industrial capitalism stage. The emergence of tripartite consultative system and voluntary and statutory approach to industrial relations, immensely contributed to the growth of a particular system of industrial relations in our country. Also the fast changing technological development, industrial production techniques,
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International Journal of Marketing, Financial Services & Management Research________________________ ISSN 2277- 3622 Vol.2, No. 6, June (2013) Online available at www.indianresearchjournals.com
and ideological values have brought forth in the industrial world a unique type of employeremployee relationship. For a proper theoretical perspective of industrial relations, it seems essential to have a historical review of industrial relations in India. Economists have traditionally identified four factors of production, viz., land labor, capital and organization. The role of labor as a factor of production is becoming increasingly important in the modern society. Capital and natural resource endowments, no doubt, are vital elements in the production process but it is labor which contributes most to the wealth of a company. “Human beings are the active agents who accumulate capital, exploit natural resources, build social, economic and political organizations and carry forward national development”. Growing industrialization and the rapid expansion of the services sector resulted in the galloping demand for skilled labor after 50s. The emergence of the concept of human relations, human resource management (HRM) and human resource development (HRD) contributed to the growing importance of labor. The issue of Industrial Relations arose from the issue of divorce of the workers from the ownership and management of the production process. This has brought about a sense of deprivation and loss of independence on the part of workers and is probably the primary cause of industrial disputes. Industrial work has drastically reduced the independence of workers and made them mere cogs in the machine – a kind of „second class citizens‟. The disciplinary rules for work have become quite harsh and arbitrary. The heterogeneous nature of workers, illiteracy and politicization of trade unions made it impossible for the workers to bargain for their rights united. All these factors have led to growing unrest among the rank of workers. The term „Industrial Relations‟ refers to relationship between Management and Labor or among Employees and their Organizations that characterize or grow out of employment. Theoretically speaking, there are two parties in the „employment‟ relationship – labor and management. Both parties need to work in a spirit of cooperation, adjustment and accommodation. In their own mutual interest certain rules for co-existence are formed and adhered to. Over the years, the State has also come to play a major role in Industrial Relations – one, as and initiator of policies and the other, as an employer by setting up an extremely large public sector. There are points to examination of the Industrial Relations:
1. Employer-Employee interactions: Industrial Relations arise out of employer employee interactions. These relations cannot exist without the basic building blocks, i.e., the employer and on one side and the employees on the other side.
2. Web of rules: Industrial Relations are a „web of rules‟ formed by the interaction of the government, the industry and the labor. They include the relations between employer and employees and between employers` associations, trade union as well as the State.
3. Multidimensional: Industrial Relations are fairly multi-dimensional in nature as they are influenced, by a complex set of institutional, economic and technological factors.
4. Dynamic and changing: Industrial Relations change with the times, generally keeping pace with the expectations of employees, trade union, employers` associations, and other economic and social institution in a society.
5. Spirit of compromise and accommodation: The Industrial Relations system is characterized by forces of conflict and compromise on either side. In the large interests of society, both the employer and the employees must put out fires amicably and get along with each other in a spirit of compromise and accommodation. The individual differences
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International Journal of Marketing, Financial Services & Management Research________________________ ISSN 2277- 3622 Vol.2, No. 6, June (2013) Online available at www.indianresearchjournals.com
and disagreements must be dissolved through persuasion and even pressure. The factors responsible for conflict situations need to be resolved through constructive means. 6. Government‟s role: The government influences and shapes Industrial Relations with the help of laws, rules, agreements, awards of courts and emphasis on usages, customs, traditions, as well as the implementation of its policies and interference through executive and judicial machinery. 7. Wide coverage: The scope of Industrial Relations is wide enough to cover a vast territory comprising of grievances, disciplinary measures, ethics, standing orders, collective bargaining, participatory schemes, dispute settlement mechanisms etc. 8. Interactive and consultative in nature: Industrial Relations include individual relations and joint consultation between labor, management.
objective of the study 1. To observe the industrial relation operation and satisfaction level of the employees in an organization. 2. To observe the working conditions of the employees. 3. To observe the different welfare schemes provided to the employees. 4. To observe the grievance handling procedure inside the organization.
Effectiveness of Industrial Relation Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated. The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others. Covers industrial relations with its stakeholders, trade union negotiations, and settlement of industrial disputes.
 To improve the welfare activities in the organization.  To identify employee grievances and redress them efficiently and promptly.  To improve the current working conditions of the employees in the organization.  To develop and maintain employee assistance program in the organization.
Industrial Relations Environment Industrial Relations studies the relationship between employer and employee in paid employment: the ways in which employees are rewarded, motivated, trained and disciplined, together with the influences of these process on the major institutions involved, namely: management, trade unions and the State. In its wider connotation Industrial Relations means the organization and practice of multipronged relationships between workers and management, unions and workers and the unions and management in an industry. Dale Yoder defines
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International Journal of Marketing, Financial Services & Management Research________________________ ISSN 2277- 3622 Vol.2, No. 6, June (2013) Online available at www.indianresearchjournals.com
Industrial Relations as a “Whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of an industry.”(Edward, 1995) Industrial Relations environment, therefore, is the resultant state of interaction amongst composites forces operating within and outside the organizations. The need for looking at Industrial Relations in a broader context has been recognized in academic as well as business circles. While absence of strikes, lockouts, indiscipline, individual and collective grievances and restrictive practices have been attributed to existence of Industrial Relations system in an enterprise, these constituted however the negative indicators of Industrial Relations environment. The positive indicators of healthy relationship amongst various internal stakeholders in the organization ought to be productivity, morale, commitment, constructive discipline and heightened sense of belongingness and identity with the vision and values of the organization amongst the employees.
Challenges Concerns for Industrial Relations cannot be limited to the maintenance of industrial harmony at enterprise level but also to prevailing issues of socioeconomic conditions prevailing in the country at the macro level. Industrial Relations systems and practices therefore must be directed towards responding major challenges surfacing in the new economic order. Healthy industrial relation cannot be maintained unless broader developmental issues are addressed. Some of the challenges impacting on Industrial Relation can be stated as follows:-
 India figures at the bottom of the 10newly industrialized countries in terms of the competitiveness of its human resources according to the World Competitiveness Report.
The World Competitiveness Report examines the competitive advantage of human resources on the basis of skills, motivations and flexibility, age structure and health of the people. The criteria included in this factor are: population, employment, vocational training, and public expenditure on education, management quality, income levels and health factors.
 India‟s rank is one of the lowest-134 out of a total of 160 countries in terms of Human Development according to the 1992 UNDP Report on Human Development. The index takes into account 3 parameters i.e. longevity(life expectancy),knowledge(adult literacy)
and decent standard of living(per capital income).  India scored 14 points and obtained medium freedom ranking(11 to 30 points) in terms of Human Freedoms Index(UNDP,1992),covering 40 indicators of freedom to exercise choices in cultural, social, economic and political affairs.(Venkatratnam,1994)  Although there has been significant reduction in the proportion of people below poverty line, the magnitude is still very large. As compared to many developing countries, India‟s performance in terms of human resources is not satisfactory. Although the literacy has increased to 52% in 1991, the no. of illiterates has increased from 301.9millon in 1981 to 328.9million in 1991.
The Changed Business Scenario & Industrial Relations The Government of India in 1991 introduced the New Industrial Policy which was followed by a large number of trade- related policies; these policies have reduced the role of the state and have led to unprecedented changes in the labor management relations. Increase in services, emergence of the white-collar workers and new forms of employment, development of non-union
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International Journal of Marketing, Financial Services & Management Research________________________ ISSN 2277- 3622 Vol.2, No. 6, June (2013) Online available at www.indianresearchjournals.com
enterprises, development in technology and adoption of new techniques in manufacturing, has considerably reduced the importance of trade unions
Changing Nature of Work In terms of work itself, the term „workers‟ seems increasingly inappropriate. “In the more modern and technologically sophisticated industries, the workers watch panels, push buttons, pull levers and turn a valve or two. Process industry pays them to exercise discretion, not to flex muscle. Their work is becoming increasingly difficult to distinguish from that of supervisors and lower managers. It is no wonder that process industry does not employ workers any longer. It employs operators and technicians.”
Changing Profile of Workers A social wave is sweeping across our country. The declining power of trade unions, improving pay packets, the willingness of management to accommodate conflicting growing stature of workers in society, their increased levels of education and the emergence of process industries which has changed the very definition of work, have together caused a revolution of perception and aspiration. The social profile of industrial workers is changing rapidly. Unlike in the early years of our independence, not many come from a background of hardship and deprivation. Workers in the organized sector earn well and like to live well. Their aspirations for their children are no different from those of the middle class. Their eyes are set on upward mobility. Within industry itself, workers are pushing towards status equality. With a changing social profile, workers are becoming more assertive with their union bosses. They are also demanding more egalitarian treatment at the work place.
 Executive dining rooms are giving way to common canteens.  There is growing demand that manager at least those who are compensated in some
form for extra hours should punch the clock.  The reluctance to perform lowly jobs.  The search for fancy status giving designations -we have „security guards‟ and
„sanitary staff‟ in place of chowkidars and sweepers.  The desire for promotion as supervisor or officer even on lower pay. On a superficial plane, our organizations are moving rapidly towards status equality. Hidden beneath the surface, however, are class distinctions, which manifest themselves in everyday relations and behavior? The changes in the emerging international and national business environment, challenges technological changes leading to redundancy of workforce, change in quality of workforce, spell out a new role for the trade unions, the management and the Government. The direction of change in the economy towards free market, places new demands on internal and external stake holders of the organization and necessitates the creation a new Industrial Relations environment.
METHODOLOGY A research methodology is a sample framework or a plan for study that is used as a guide for conducting research. It is a blueprint that is followed in processing research
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International Journal of Marketing, Financial Services & Management Research________________________ ISSN 2277- 3622 Vol.2, No. 6, June (2013) Online available at www.indianresearchjournals.com

work. Thus in good research methodology the line of action has to be chosen carefully from various alternatives. A research design is the arrangement of conditions for the collection of data and analysis of data. In fact research design is the conceptual structure within which research is conducted.
Descriptive Research Design has been used by the authors to solve each and every factor of given task. In the descriptive research study, the main purpose is that of formulating a problem for more precise investigation or of developing the working hypothesis forms an operational point of view. The major emphasis is on the discovery of ideas and in sights. According to the needed research for the project is both Primary and Secondary data collection methods. We have used company website, some publications on the net and information related to broachers for secondary data collection. To ensure the accuracy of the primary data collection used is the structured interview method.

1) Welfare schemes provided by Rourkela steel plant

I. R. Rating SATISFIED
DISSATISFIED

Total Respondents 35
5

% of Respondents 87.5
12.5

Majority of Employees are aware about the welfare schemes provided by the RSP.

2) The wages and incentives provided by RSP

I. R. Rating

Total Respondents

% of Respondents

SATISFIED

30

75

DISSATISFIED

10

25

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International Journal of Marketing, Financial Services & Management Research________________________ ISSN 2277- 3622 Vol.2, No. 6, June (2013) Online available at www.indianresearchjournals.com

Majority of Employees are satisfied with the salary and incentives provided by the RSP.

3) Provision of canteen at your workplace provided by Rourkela steel plant

I. R. Rating SATISFIED
DISSATISFIED

Total Respondents 25
15

% of Respondents 62.5
37.5

62.5% Employees are satisfied and 37.5% are not satisfied with the canteen facility provided by the RSP.
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International Journal of Marketing, Financial Services & Management Research________________________ ISSN 2277- 3622 Vol.2, No. 6, June (2013) Online available at www.indianresearchjournals.com

4) Drinking Water facility in Rourkela steel plant

I. R. Rating

Total Respondents

SATISFIED

32

DISSATISFIED

8

% of Respondents 80
20

80

70

60

50

40

satisfied

30

dissatisfied

20

10

0

80% Employees are satisfied and 20% are not satisfied with the drinking water facility provided by the RSP.

5) Medical Facilities provided by Rourkela steel plant

I. R. Rating

Total Respondents

SATISFIED

22

DISSATISFIED

18

% of Respondents 55
45

55% Employees are satisfied and 45% are dissatisfied with the medical facilities provided by the RSP.
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International Journal of Marketing, Financial Services & Management Research________________________ ISSN 2277- 3622 Vol.2, No. 6, June (2013) Online available at www.indianresearchjournals.com

6) Retirement benefits provided by RSP

I. R. Rating

Total Respondents

SATISFIED

32

DISSATISFIED

8

% of Respondents 80
20

80% Employees are satisfied and 20% are dissatisfied with the retirement benefits facility provided by the RSP.

7) Recreation facilities
I. R. Rating SATISFIED DISSATISFIED

Total Respondents 35 5

% of Respondents 87.5 12.5

57.5% Employees are satisfied and 12.5% are not satisfied with the recreation facility provided by the RSP.
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International Journal of Marketing, Financial Services & Management Research________________________ ISSN 2277- 3622 Vol.2, No. 6, June (2013) Online available at www.indianresearchjournals.com

8) Transport facilities provided in RSP

I. R. Rating

Total Respondents

SATISFIED

24

DISSATISFIED

16

% of Respondents 60 40

60% Employees are satisfied and 40% are dissatisfied with the transport facilities provided by the RSP.

9) Grievance handling procedure in RSP

I. R. Rating

Total Respondents

SATISFIED

40

DISSATISFIED

0

% of Respondents 100% 0%

172

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Challenges And Effectiveness Of Industrial Relation