Essentials of IR Faculty Presentation 2nd Dec

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    ESSENTIALS OF INDUSTRIAL RELATIONS A CASE

    STUDY OF RASHTRIYA ISPAT NIGAM LIMITED,

    VISAKHAPATNAM STEEL PLANT

    - P.Sobha Rani

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    Industrial Relations are an art, the art of living

    together for the purpose of production

    -J. Henry Richardson

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    INDUSTRIALRELATIONS

    The relationship between the management and the

    employees in an industry

    No society and no nation can be proud of its humanresource unless there is a systematic and

    sustainable development of capacities of its people

    and human capital.

    Human resources management practices result in

    creation of relations between the employees

    management and trade unions. Such relation are

    called industrial relations.

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    INDUSTRIALRELATIONS ININDIA

    During World War II, industrial activity in India received atremendous boost

    diversification and

    growth in the size and number of industrial units

    Consequent on the rapid changes in the industrialeconomy between the year 1920 and 1980, industrialrelations were affected, resulted in industrial conflicts,

    strikes and lock-outs.

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    INDUSTRIALRELATIONS ININDIA

    Immediately after independence, the primaryconsideration of the Government was

    the uninterrupted industrial production

    bring about improvement in the economic conditions

    To achieve this, the government passed several Actsrelating to the different aspects of Industrial Work andWorkers.

    The Government has attempted to make IndustrialRelations healthy by enacting Industrial Disputes Act,1947

    to solve the disputes and to reduce the retention of

    any particular dispute

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    Globalization of business, trade, industry and

    advancements of technology

    Important for the management and the workers to

    strive together for the achievement of theorganizational objectives

    Human resource is the strategic resource and no other

    resource can be fully utilized to generate income and

    wealth of a nation without the active involvement of

    this resource

    Men or human resources are related as the only crucial

    and dynamic factors of productions

    GROWINGIMPORTANCE OF

    INDUSTRIALRELATIONS

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    It is an irrefutable fact that most of the problems

    in an organization are human problems since

    human nature is complex; managing humanresources in any organization has been a very

    challenging task

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    NEEDFOR THE STUDY

    The economy of any nation depends on a strong base of

    Iron & Steel Industry in that nation

    History has shown that the Countries having a strongpotential for iron & steel production have played prominent

    role in the advancement of civilization in the World

    Steel comprises one of the most important sectors of oureconomy

    It is used for such small items like nails, pins, needles etc.,

    through surgical instruments, agricultural implements,

    structures etc

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    Visakhapatnam Steel Plant signifies the attainment of self

    reliance by our nation in design, construction, and

    operation of a large specialised, sophisticated and

    modern integrated iron and steel works

    VSP changed the steel, scenario of the country, and

    helped in meeting the countrys increasing demand for

    steel which is vital to our economic development

    Being the first major steel plant, in the southern part of the

    country, it boosted the engineering industry around it

    NEEDFOR THE STUDY

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    Industrial Relation constitutes one of the most delicate &

    complex problems of modern industrial society

    Like in every industry IR plays a very significant role in VSP

    The overall growth and peaceful atmosphere in VSP is due

    to the main reason of cordial industrial relations

    atmosphere prevailing therein

    Hence the study has been undertaken to go into the details

    of the I.R. in the organization.

    NEEDFOR THE STUDY

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    Objectives of Industrial Relations:

    To develop and secure mutual understanding betweenthe management and the employees.

    To maintain industrial peace and congenialatmosphere between the employer and employees in

    the industrial organizations. To increase productivity in the organization by

    minimizing the conflicts.

    To provide an opportunity to the workers to expresstheir views in the management and decision making

    on policy matters. To enhance the economic and social status of the

    workers by time-to-time improvement of wages,benefits, and by helping the workers in evolvingsound budget.

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    To encourage and develop trade unions in theorganization in order to improve the workersstrengths and time-to-time redressal of their

    legitimate grievances. To avoid industrial conflicts and their consequences

    To provide a basic frame work for the managementand the employees to resolve their differences forsmooth functioning of the industry.

    To ensure discipline in the organisation and in theindustry.

    To improve the bargaining capacity of the workersthrough their trade unions.

    To establish mutually beneficial channel ofcommunication in the organisation industry.

    To create opportunities for both management andemployees to review learn, and put positive learninginto practice.

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    Objectives of the study

    To study the existing practices of industrial relations inVisakhapatnam Steel Plant.

    To examine the aspect of IR in VSP as Trade Union in VSP

    are playing a dominant role.

    To analyze various IR practices followed by VSP.

    To portray the organization profile of VSP with focus on

    Industrial Relations prevailing therein.

    To find out the impact of IR to the employees of VSP.

    To determine whether the existing industrial relations are

    fulfilling the objectives of the management of VSP.

    To suggest the management some measures for better

    industrial relations in addition to those already existing.

    To help in establishing and maintaining true industrial

    pre-requisite for the establishing of a socialist society.

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    Methodology:

    The primary source of data is collected from executives of the

    company; structured questionnaire has been prepared andadministered among employees of VSP to find their perception

    about IR.

    The secondary source of data: includes the company records,

    annual reports, company publications, web sites internet andliterature review done by referring various subject related

    textbooks.

    The survey was conducted to 100 employees who belong to

    different departments. It is random sample in which all levels ofemployees will have the equal chance of participating.

    Questionnaire is the method used to gather the information and

    opinions of 100 employees. The study was conducted on the topic

    Essentials of Industrial Relations in Visakhapatnam Steel Plant.

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    DATA ANALYSIS

    1. How do you feel about industrial relations in

    Visakhapatnam Steel Plant?

    SI. No. Criteria No. of

    respondents

    %

    1

    2

    3

    4

    Very good

    Good

    Average

    Belowaverage

    52

    35

    12

    1

    52

    35

    12

    1

    Total 100 100

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    Conclusion : Majority of the workers feel very good

    about industrial relation in VSP. Only a small

    percentage of employees have said it to be good and

    average. This shows that most of them are satisfied.

    IR in VSP Steel Plant

    0

    10

    20

    30

    40

    50

    60

    ery

    good

    Good Average Below

    average

    Criteria

    Percentof

    res

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    2. Indicate the extent of your participation in theindustrial relations aspect with the

    management in VSP

    SI. No. Criteria No. of

    respondents

    %

    1

    2

    3

    Very Active

    Active

    Not Active

    65

    35

    0

    65

    35

    0

    Total 100 100

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    Conclusion : From the said analysis, it is understoodthat the all employees are participating in IR related

    matters with the management.

    Participation of Employees in IR

    0

    10

    20

    30

    40

    50

    60

    70

    Very Active Active

    Category

    Percentofrespond

    en

    Series1

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    3.How do you feel about Grievance handling

    procedure?

    SI. No. Criteria No. of

    respondents

    %

    1

    2

    3

    4

    Very good

    Good

    Average

    Below average

    62

    27

    10

    1

    62

    27

    10

    1

    Total 100 100

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    Conclusion : The response given for this shows amajority of the workers to be very much satisfied.This shows that management of VSP has been verysuccessful in dealing with the problems of theworkers.

    Grievance Handling

    0

    10

    20

    30

    40

    50

    60

    70

    Veryg

    o

    Goo

    Aver

    ag

    Below

    av

    er

    Criteria

    Percentofresp

    o

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    4.How do feel about welfare activities?

    SI. No. Criteria No. of

    respondents

    %

    1

    23

    4

    Highly satisfied

    SatisfiedDissatisfied

    Highly

    dissatisfied

    67

    302

    1

    67

    302

    1

    Total 100 100

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    Conclusion: The employees are very satisfied withthe kind of welfare activities that is undertake bymanagement of VSP for its employees. Therefore alarge number of employees have rated it as highlysatisfied.

    Welfare activities

    010203040506070

    80

    Highlys

    atisfi

    Satis

    fie

    Dissa

    tisfie

    Highly

    diss

    atis

    Criteria

    Percentofres

    pon

    Series1

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    5. What is your opinion regarding working conditions in

    Visakha steel plant?

    SI. No. Criteria No. of

    respondents

    %

    1

    2

    3

    Very good

    Good

    Average

    80

    14

    6

    80

    14

    6

    Total 100 100

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    Conclusion: The employees are very satisfied with the

    working conditions that is undertake by management of

    VSP for its employees. Therefore a large number of

    employees have rated it as very good.

    Working conditions

    010

    20

    30

    4050

    60

    70

    8090

    Very

    good

    Good Average

    riteria

    Pe

    rcentofresponden

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    6. If there is a problem whom do you approach first?

    SI. No. Criteria No. of

    respondents

    %

    1

    23

    4

    Controlling

    officerDept. head

    Trade union

    Co-worker

    70

    015

    15

    70

    015

    15

    Total 100 100

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    Conclusion: Most of the workers in the regard go to their

    controlling officer incharge of the Dept. who should be

    approached first in case of any such matter. While the rest of

    employees thing it fit to report the matter to their trade union

    or to their co-workers.

    Approch First

    0

    10

    20

    30

    40

    5060

    70

    80

    Criteria

    Percentofres

    po

    Controlling officer

    Trade union

    Co-worker

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    7.Are you aware of suggestion scheme system?

    SI. No. Criteria No. of

    respondents

    %

    1

    2

    Yes

    No

    87

    13

    87

    13

    Total 100 100

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    Conclusion:Almost all of the employees are

    aware of the scheme. The rest of the workers who

    are not aware of the scheme.

    SUGGESTIONS SCHEME

    13%

    87%

    0

    20

    40

    60

    80

    100

    1 2

    %

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    8. Is the suggestion scheme system increases

    productivity?

    SI. No. Criteria No. of

    respondent

    s

    %

    12

    YesNo

    6535

    6535

    Total 100 100

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    Conclusion: The higher number of employees are of the view

    that suggestion scheme system does help in increases

    productivity. While the lesser number think that it does not

    help in increases productivity.

    SUGGESTION BOX SYSTEM

    35%

    65%

    0

    10

    20

    30

    40

    50

    60

    70

    1 2

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    9. How do you rate the safety measures obtained in

    VSP ?

    SI. No. Criteria No. of

    respondents

    %

    1

    23

    4

    Very good

    GoodAverage

    Below

    average

    25

    5020

    05

    25

    5020

    05

    Total 100 100

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    Conclusion: Regarding the safety measures in

    VSP, the employees seems to have been satisfied

    except only 5 % saying that the measures are below

    average.

    SAFETY MEASURES

    5%

    20%

    50%

    0

    10

    20

    30

    40

    50

    1 2 3 4

    25%

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    10.Do you think that you need changes in the present IRin VSP in the changing scenario ?

    SI. No. Criteri

    a

    No. of

    respondents

    %

    1

    2

    Yes

    No

    7

    93

    7

    93

    Total 100 100

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    Conclusion :All most all employees are satisfied

    with the IR system in VSP.

    7%

    93%

    0

    20

    40

    60

    80

    100

    1 2

    CHANGES IN THE PRESENT IR IN VSP

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    Suggestions:

    Appreciation for good performance and proper guidancefor improvement is a must.

    It has been observed that the VSP has got good results

    with the efforts of I.R. aspects. It is suggested that the

    management should give some sort of specialisedtraining to those employees whose performance is less.

    So that it will help the organization as well as

    employees who are below level of good performance to

    improve their quality of work.

    If the management conduct periodical trade tests to allthe workers for promotion to higher posts then the

    workers will be motivated more.

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    Even though the employees of VSP have inter-

    departmental transfers, the employees should be

    facilitated with inter changing between major plants,so as to acquire knowledge of various equipment

    handled by steel plants.

    Feed back should be taken as a basic criterion for

    giving promotions. The grievance handling procedure in VSP should be

    dealt with more carefully and tactically so as to be

    justified to the cases arising.

    Grievance committee should effectively involve at each

    unit level, department level and at zonal level and also

    conduct periodical meetings for resolving grievances.

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    CONCLUSION:

    VSP has formulated contingent plants VSP initiated continuous interaction with employees

    and unions

    controlling absenteeism was introduced ofDaily

    Attendance Recording System (DARS)

    Notable step is access to the CEO through access

    scheme for redressal of employees grievances

    Joint Consultative Machinery (JCM) - to reduce inter-

    union conflicts and to achieve consensus on several

    work related issues

    VSP also introduced quality Circles (QCs) in a big way

    to facilitate the employees to discuss the work related

    problems and come out with suitable solutions.

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    BIBLIOGRAPHY

    Books: Aswathappa, K; Human Resource and Personal Management,

    Text and cases Tata Mc. Graw Hill Publishing company Limited,

    New Delhi, 1984.

    James A.F. Stoner, Management, Prentice Hall of India (p) Ltd;

    New Delhi, 1984. Megginson Leon C; Personnel and Human Resource

    Administration, Richard D; Irwin Inc. Homewood, Illios, 1972.

    Subba Rao, P; Essentials of Human Resource Administration

    and Industrial Relations, Himalaya Publishing House, Mumbai,

    2006. C.S. Venkata Ratnam, Industrial Relations, Oxford University

    Press, New Delhi, 2006.

    C.S. Mamoria, S.V. Gankar, Personnel Management, Text &

    Cases, Himalaya Publishing House, Mumbai, 2005.

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    JOURNALS:

    Indian Journal of Social Work

    Indian Journal of Public Administration Indian Journal of Industrial Relations

    Indian Journal of Industrial Training

    India Management

    HRD News Letter Indian Journal of Public Administration

    ICFAI Journal of Management

    Annual Reports of Visakhapatnam Steel Plant