Workers Participation in Mgt

8/15/2019 Workers Participation in Mgt

1/91


2/91


3/91

Phi#oso$h":

The 'hilosophy underlying workers participation stresses)

:i; democratic participation in decision –making .

:ii; ma!imum employer –employee collaboration.

:iii; realization of a greater measure of social %ustice.

:iv; grater industrial efficiency and

:v; higher level of organizational health and effectiveness.

T%E NEED &OR WORKERS PARTICIPATION IN MANAGEMENT:

The human relations movement has so much impact on industrial society today

that workers participation in management of public enterprises has become a vital issueto be reckoned with. The need for W'* in such enterprises is increasing day&by&day on

account of various factors. +ome of the important factors have been discussed briefly as

follows )

'(Constittion)# *e+i*e,ent :-

"rticle


4/91

or enhancing productivity and production in public enterprises, workers

participation in management has an important role to play. But it largely depend on

improved conditions of work and improved methods and latest machinery and

equipment. The management should consult workers in respect of new machinery,

methods of production and the way in which economies could be effected in the cost of

production and ways which the productivity may be increased.

1( I,$*ove,ent of ,t)# co-o$e*)tion :-

Workers participation in management is quite necessary to improve mutual

understanding and co&operation between the management and workers. *anagerial

effectiveness and willing co&operation of workers in public enterprises are the two pre&

conditions for unimpaired organizational performance and production. Workers have

very powerful unions, and there are conflicts in attitude and approach, between

management and unions. 4iven a sense of identification and good mutual understanding

on the part of both, hindrances can be over come by allowing reasonable concessions to

workers. This can be achieved more easily through workers participation in

management.

2(Re,ov)# of Co,,nic)tion G)$:-

To bridge the gap between managers and workers in their feelings, workers

participation in management may be used as a successful tool. 1nce workers are given

an opportunity to participate in the decision – making process, their doubts and

misunderstandings are removed, they are committed to the ob%ectives of the enterprises,

becoming responsive to its need as they find greater satisfaction out of investment in

organizing the working methods, setting the production targets and controlling their

own work.

3( I,$*ovin/ %,)n Re#)tions :-

Workers participation in management may be looked up on as a way of

humanization industrial work by creating opportunities for them to gain social


5/91


6/91

:i; To promote increased productivity for the advantage of the organization, workers

and society at large @

:ii; To provide a better understanding to employees about their role and place in the

process of attainment of organizational goals @

:iii; To satisfy the workers social and esteem needs @ and

:iv;To strengthen labour management co&operation and thus maintaining industrial peace and harmony @

:v; To develop social education for effective solidarity among the working community

and for tapping latent human resources.

:vi; "n ideological point of view to develop self – management in industry @

:vii; "n instrument for improving efficiency of the company and establishing

harmonious industrial relations.

:viii; To build the most dynamic human resource.

:i!; To build the nation through entrepreneurship and economic development.

&ORMS O& PARTICIPATION :

The form or the way in which workers can do participate in management varies

a great deal. To some e!tend, this variation is related to the differences in management,

the issue or areas on which participation is sought, and the pattern of labour –

management relations. -t may also vary from organization to organization, depending up

on the level of power or authority en%oyed by managers at different levels in different

types of organization.

The specific way in which different forms of participation may take place also

varies from situation to situation. There may be formal organizational structures, such as

the works committee, plant councils, shop councils, production committee, safety

committee, %oint management council, canteen committee, '..*anagement committee,

etc. the participation may also take place through informal mechanisms and forums. "

supervisor or a foreman may consult a worker before taking a particular decision in

which the later is interested, such as granting or re%ecting an application for leave,

allotment of work on overtime, transfer from one section to another.

-f workers participate in management either through formal mechanisms or through informal procedures, if should be considered as an instance of participative

A


7/91

management. Whatever from it may take, it is necessary, for the effective functioning, to

promote the interests of both the parties – management and labour. The management(s

primary interest lies in improving productivity, reducing cost and thus improving

profitability. The workers interest lies in improving their earnings. When earnings

improve through sharing gains in productivity, apparently a harmony of interests is

promoted. -f participation is to be effective as a process or device, it should beintegrated with a scheme of improving productivity and gain – sharing.

The $)*tici$)tion is of t9o t"$es :

Ascen!in/ $)*tici$)tion :

The participation may be ascending participation, where workers are given an

opportunity to influence managerial decisions at higher levels through their elected

representatives to work councils or the board of the 6nterprise :i.e.,integrated

participation;.

Descen!in/ $)*tici$)tion :

-n descending participation, they may be given more power to plan and make

decisions about their own work :delegation and %ob enrichment;. They may participate

through collective bargaining :i.e., dis%unctive participation;. They may also participate

informally when a manager adopts a participative style of supervision, or when workers

employ unofficial restrictive practices.

The important forms in which workers can participate in management are )

Co##ective 6)*/)inin/ :

The issues over which the interests of workers and management are competitive,

such as employment conditions, wage rates, working hours, and the number of holidays

are the usual areas for collective bargaining.

7oint )!,inist*)tion :

The issue over which the parties are equally concerned, such as the efficient

management of provident fund money, canteen, annual sports, workers welfare facilities

etc., may form the sub%ect of %oint administration, %oint decision&making or consultation.


8/91

The difference between %oint administration, %oint decision&making or

consultation is important, but narrow. -n %oint administration, workers and management

share the responsibility and power of e!ecution. -n %oint decision&making, even through

two groups participate in deciding the policies, e!ecution is generally effected by the

management. -n the %oint consultative form, the management only consults workers –

their desires, opinions, ideas, suggestions@ but retains to itself the authority and

responsibility of making decisions and e!ecuting them.

-t may be useful to note that #the schemes in West 4ermany :outside of coal

mining and iron and steel;, rance, the 3C, -srael and 'oland conform to the %oint

consultation model of participation in which the management takes the final decision

but allows the workers representatives to e!press their views. 1n the other hand, the co&

determination scheme in coal mining and steel industry in West 4ermany and the %oint

management plan in -srael appro!imate to the %oint decision – making model in which

workers and management representatives sit together and take decision %ointly, through

the workers representatives may be in minority. Dugoslavia provides the only e!ample of

the workers control model. These models often tend to merge in to each other to some

e!tent. +tray instances of every model can be found in all the countries.

-n -ndia, participation in management fall under the co&operative or %oint

management model, entailing a tempering of managerial power, but not basically

altering the social system of production relations.

4.5.7anda, after studying the scheme of workers participation in

management in some of the 6uropean 0ountries concluded. #irst, through their was a

variety of forms in which consultation between the management and workers was

maintained@ the in&built character of consultation is the single important factor in their

success. +econdly, their was no attempt to by pass trade unions through the

establishment of %oining consultation machinery.$

LE8ELS O& PARTICIPATION :

The participation is possible at all levels of management. -t depends up on the

nature of functions, the strength of the workers, the attitudes of trade unions and that of

management. The areas and degrees may differ very considerably at different levels of

E


9/91

management. "t one end, where the e!ercise of authority in decision&making is almost

complete, participation will be negligible@ while at the other hand, where the e!ercise of

authority is relatively small, participation will be ma!imum. -n between these two

e!tremes, the nature and e!tent of authority is relatively small, participation will be

ma!imum. -n between these two e!tremes, the nature and e!tend of participation will

vary, depending on a variety of factors, including the problems or issues, the attitudesand past e!perience of the management, and the development of human relations in

general and labour management relations in particular. The fact is that workers

participation in management will have to be at different levels, the workers may be

given an opportunity to influence or take part in management decisions at the higher

level through their representatives on a supervisory board or on the Board of irectors,

or through their work councils. The participation may also be at lower level at which

workers are given some authority to plan and take decisions about their work, like %ob

enrichment, %ob enlargement, delegation etc.

There are various stages of participation. orothea has given three stage of

development of labour – management co&operation, viz.,

& -nformation sharing

& 'roblem sharing and

& -dea sharing

Info*,)tion sh)*in/ :

"ccording to her,the information stage is one in which an employer looks up on

the %oint committee as a means of informing employees about business conditions and

out look of their company, as well as telling them about changes in operating methods

before they are put into effort.

P*ob#e, sh)*in/ :

The problem sharing stage is one at which the employer recognizes that workers

can make a contribution in such areas as material costs, and the quality of work, and the

management presents the facts and labour is requested to give its opinion or to make

proposals for improving the situation.

I!e) sh)*in/ st)/e :

F


10/91

"t the idea sharing stage , the management indicates its willingness to

have labour&initiated ideas in any kind of production and personnel activities and

labour, with certain safeguards , is willing to contribute to the operation of the

business.

E*nest D)#e !esc*ibes fo* in!s of co-o$e*)tion :

-nformal co&operation , where the parties merely co&operate in gathering

information. The pooled facts are then made available to both the parties for

whatever use they care to make of them.

"dvisory co&operation , where each side may consult with the other . The

union gives advice on certain matters to the management and the management

consults them before action is taken.

0onstructive co&operation , where each party makes suggestions for the

improvement and the suggestions are acted up on and@

Goint determination , where policy matters are %ointly decided by the union and

the employer.

Broadly speaking , there are four stages of participation.

Info*,)tive An! Associ)tive P)*tici$)tion:

Where the members have the right to receive information , discuss and

give suggestions on the general economic situation of the concern , the state of

the market ,production and sales programmes , organization and general running of

the undertaking , circumstances affecting the economic position of the concern

methods of manufacture and work , annual balance sheet and profit and loss

account and connected documents and e!planations, long term plans for e!pansion

, redeployment and such other matters as may be agreed to. There are the areasin which the members have the right to receive information and discuss these ,

and make suggestions which are binding on the management.

Cons#t)tive P)*tici$)tion )

0onsultative participation involves a higher degree of sharing of view of

the members and giving them an opportunity to e!press their feelings. -n the

process , members are consulted on matters releting to welfare amenities , adoption

of new technology and the problems emanating from it , safety measures etc., -ts

H


11/91

management(s prerogative to accept the suggestions of workers given at

participative forum.

A!,inist*)tive P)*tici$)tion :

"dministrative participation involves a greater degree of sharing of

authority and responsibility of the management functions. 8ere members are given

a little more autonomy in the e!ercise of administrative and supervisory powers

in respect of welfare measures and safety works, the operation of vocational

training and apprenticeship schemes , the preperation of schedules of working

hours and breaks and holidays , payment of reward for valuable suggestions

received and any other matter that may be agreed by the members.

Decision P)*tici$)tion :

ecision 'articipation is the highest form of articipation , where sharing in

decision&making power is complete and delegation of authority and responsibility

of managerial function to such a body is ma!imum. -n matters like economic ,

financial , administrative policies the decisions are mutually taken. -n short ,

workers participation in management can deal with and e!ercise supervisory ,

advisory and administrative functions on matters concerning safety , welfare etc@

though the ultimate responsibility is vested in the management. -n short, thecreation of new rights as between employers and workers should be outside the

%urisdiction of the participation schemes.

Wo*e*s P)*tici$)tion In In!i) :

The participation of workers in management is nothing new for -ndia . -n

F9H, *ahatma 4andhi had suggested this on the ground that workers

contributed labour and brains , While share holders contributed money to an

enterprise , and that should therefore , share in its prosperity . 8e observed

#employees should not regard themselves as sole owners of mills and factories

of which they may be legal owners. They should regard themselves as trustees.

There should be a perfect relationship of friendship and co&operation among

them.$ "s for the unions he said ) #The aim should be to raise the moral and

intellectual height of labour and thus by sheer merit , make labour master of the

means of production instead of the slave that it is .# he insisted that #capital and

labour should supplement and help


12/91

each other, they should be great family, living in unity and harmony.$ The

influence of mahatma 4andhi bore fruit @ and for the first time , the %oint

consultation model was advocated in cotton te!tile industry. The year F9H may

therefore be regarded as a landmark in the history of %oint consultation in -ndia.

The government has acknowledged the importance of workers participation

in management which has been indicated in various official pronouncements from

time to time. The first ma%or step in the direction was the enactment of the

-ndustrial disputes act in F


13/91

The aim of the government in advocating workers participation in management

was part of its overall endeavor to create a socialist society where in the sharing of a

part of managerial powers by the workers was considered necessary.

#" study group on workers participation in management, consisting of

representatives of the government, employees and workers was setup in F?A, which,

after closely e!amining the systems of workers participation in management in the 3C,

+W667, 2"706, B654-3*, W6+T 462*"7D and D341+5"/-" favoured

the system of %oint management councils.

The seminar on labour – management co&operation, F?E, took important

decision about the size of the councils, the office&bearers and term of office etc.,

The third five year plan stated that the policy of associating labour increasingly with

management should be further strengthened. -t said, # workers participation may become a highly significant step in the adoptation of the private sector to fit in the frame

work of a socialist order. -t can serve to bridge to gulf between labour and management,

create better mutual understanding and facilitate the adoption, on both sides, of an

ob%ective approach to the problems of industry and workers. or the peaceful evolution

of an economic system on a democratic basis, it is essential that workers participation in

management should be accepted as a fundamental principle and as an urgent need.$

The fourth five year plan urged the e!tension of workers participation to public

sector undertakings and emphasized its importance as an essential functional link in the

structure of industrial relations.

8ARIOUS COMMITTEES ON WORKERS PARTICIPATION:

+achar 0ommittee on workers 'articipation

-n %une F, a high –powered e!pert committee on companies and *.2.T.'.

"cts was set up by the 4overnemnt of -ndia under the chairmanship of 2a%inder +achar.

The terms of reference for the committee were) # :i; to consider the provisions of the

companies "ct and *.2.T.'."ct and :ii; to suggest measures by which workers

participation in the share capital and management of companies can be brought about$.

The committee submitted its report on "ugust FE.

The main recommendations of the 0ommittee were)

:a; 2egarding representation of workers on Board of irectors )

These were)

=


14/91

:i; To begin with, 'articipation shall be limited to companies which employee ,HHH or

more workers : e!cluding badli workers;.

:ii; The definition of workmen is given in the -ndustrial dispute "ct, F


15/91

section E of the "ct should be suitably amended permitting the companies to give to

the employees a loan upto 9 months salary or wages not e!ceeding 2s.9HH for the

purchase of the shares of the company$. This scheme, however, has not found favour

with -ndian industries.

8ERMA COMMITTEE ON WORKERS PARTICIPATION IN INDUSTR;:

The Ganata 4overnment set up a committee in +eptember F under the

chairmanship of 2avindra /arma, the 3nion *inister of 5abour. The terms of reference

of the committee were)

:i; To study the e!isting statutory and non –statutory schemes.

:ii; To recommend on the outlines of a comprehensive scheme of workers 'articipation

especially keeping in view the interests of the national economy, efficient management

and workers, and

:iii; To recommend the manner in which the concept of trusteeship in industryand

the participation of workers in equity can be given a practical shape in a scheme of

workers. 'articipation.

The main recommendations of the 0ommittee, which submitted its report inFF, are)

:i; " three –tier system of participation, viz., at the shop floor, plant and corporate or

board levels, should be adopted.

:ii; 5egislation on workers participation covering all undertakings employing ?HH or

more workers, private or corporate sector should be introduced.

:iii; There should be provision for e!tending the scheme to units employing at

least HH workers.

:iv;The representative for the participative forums should be elcted by secret ballot with

a view to avoiding any possible friction between the collective bargainin agent and the

representative. The committee suggested that there should be parity between therepresentative of employers and workers on the participation forums at shop and plant

levels, but it could not agree on the number of workers representatives at the corporate

level.

:v; The issue of equity participation was recommended as optional. 7ot less than HI

of all new shares to be issued in future by a company should be reserved e!clusively the

workers shares of the workers of that company.

The si


16/91

"t the enterprise level, workers 'articipation in management should become an

integral part of the industrial relations system and serve as a effective instrument if

management. -t should be made a vehicle for transforming the attitudes of both

employers and workers with a view to establishing a 0o –operative culture, which may

help in building a strong, self –confident and self reliant country with a stable industrial

base. There is a wide area of relationships in an enterprise outside the domain of collective bargaining where employers and workers can work %ointly for the common

interest of different groups ad the enterprise as a whole. +uch a system of consultative

and %oint decision –making should ensure frictionless co –operation at various levels,

provide %ob satisfaction, release the latent creative energy of workers, reduce their

alienation and enhance the commitment of workers and the line management to the

common ideal of better performance. But it is necessary to provide training facilities to

workers and managerial supervisory personnel so as to motivate them in making the

scheme of workers 'articipation a successJ$

#J.it is also necessary to strengthen the tripartite consultative machinery so that

it may be possible to evolve the broad frame work of labour policies and programmes

and full consideration and discussion among all interests concerned &trade unions,

employers and 4overnment. "t the industry level, standing Tripartite 0ommittees could

serve a useful purpose in identifying the bottlenecks and deficiencies and suggesting

corrective measures.$

Co,$*ehensive Sche,e fo* E,$#o"ees P)*tici$)tion in M)n)/e,ent ='>50?:

Based on a review of the working of the various schemes of workers

participation in management introduced in F? and F and the e!perience so gained,

the 4overnment in FE= formulated a comprehensive scheme for workers participation

in the 0entral public sector understanding. The main features of the scheme are)

:i; The scheme will not have any legislative backing to begin with.

:ii; -t would cover all public sector undertakings, e!cept those specifically e!empted.

:iii; "ll the undertakings run on departmental lines by the 0entral 4overnmentwill be e!cluded.

:iv;-t will operate both at the shop floor and the plant levels.

A


17/91

:v; The employees and employers shall have equal representation on all the participativeforums, and

:vi;The functions of the participative forum would be as laid down in the scheme and

can be modified with the consent of both the parties.

But a host of constraints –such as multiplicity of union, inter –union rivalry, lack

of proper knowledge on the part of workers about the scheme –have acted as astumbling block in successful working of the scheme.

&o*,s of 9o*e*s $)*tici$)tion in In!i) :

-n the country the workers participation in management scheme is vogue in three

forms, viz.,

:i; The works committees :set up under the -ndustrial ispute "ct, F


18/91

:0; Goint 0ouncils,

:; 3nit 0ouncils,

:6; 'lant 0ouncils,

:; +hop 0ouncils,

:4; Workers representative on the Board of *anagement, and

:8; Workers 'articipation in share capital.

The )bove P)*tici$)tive fo*,s )*e !e)#t 9ith in the fo##o9in/ $)*)/*)$hs(

Wo*s Co,,ittees :

The -ndustrial isputes "ct, F


19/91

'resident is the workers representative. The tenure of these bodies is two years. The

total strength of these bodies should not e!ceed 9H. The employees representatives have

to be chosen by the employees.

These committees functioned actively in some organizations like Tata -ron and

+teel 0ompany, -ndian "luminum works at Belur, and 8industan 5ever. -n all these, the

management have evolved %oint committees independently of the statutory requirements.

7oint M)n)/e,ent Conci#s =7MCs? :

The second ive Dear 'lan recommended the setting up of %oint councils of

management consisting of representatives of workers and management. The

4overnment of -ndia deputed a study group :F?; to study the schemes of workers

'articipation in management in countries like 3C, rance, Belgium and Dugoslavia.

The report of the study group was considered by the -ndian 5abour 0onference :-50; in

its ?th session in F? and it made certain recommendations.

:i; That workers 'articipation in management schemes should be set up in selected

undertakings as a voluntary basis.

:ii; " sub –committee consisting of representatives of employers, workers and

government should be set up for considering the details of workers 'articipation in

management schemes. This committee should select the undertaking where workers

participation on management would be introduced in the first stage on an e!perimental basis.

Objectives :

The ob%ectives of Goint *anagement 0ouncils are as follows)

:i; To increase the association of employers and employee thereby promoting cordial

industrial relations.

:ii; To improve the operational efficiency of the workers,

:iii; To educate welfare facilities to them,

:iv;To educate workers so that they are well equipped to participate in these schemes,and

:v; To satisfy the psychological needs of workers." tripartite sub –committee was set up

as per the recommendations of -ndian 5abour 0onference which laid down certain

criteria for selection of enterprises where the G*0s could be introduced. They are)

:i; The unit must have ?HH or more employees.

:ii; -t should have a fair record of industrial relations,

F


20/91


21/91

:i; To be consulted on matters like standing orders, retrenchment, rationalization,

closure, reduction of operations etc.

:ii; To receive information, to discuss and offer suggestions,

:iii; To shoulder administrative responsibilities like maintaining welfare

measures, safety measures, training schemes, working hours, payment of rewards.

The tripartite committee originally prepared a list of ?H enterprises and later the

target was raised to ?H to introduce G*0s. -t was found by FAA that 9< G*0s were

in e!istence. This number dropped to EH in FE and a good number of these were not

working. +ome of the organizations which were successful with e!periments of workers

participation are Bharat 8eavy 6lectricals 5imited :B865;, Tata -ron and +teel

0ompany :T-+01;, -ndian "luminum 0ompany and "luminum -ndustries of Cundara.T-+01 agreed to establish a comprehensive scheme of %oint consultation by an

agreement with its units. 3nder this scheme a three –tier system of consultation was set

up.

7oint Conci#s:

"t every division Kregion Kzonal level, or as may be considered necessary in a

particular branch of an organization Kservice employing HH or more people, there shall

be a %oint council. The main features of the %oint council shall be)

:i; 6ach organization Kservice shall decide the number of councils to be set up for

different types of services rendered by it in consultation with the recognized union – or

workers as the case may be, in the manner best suited to the local conditions.

:ii; 1nly such persons who are actually engaged in the organization Kservice shall be

members of the %oint council. 6ach organization Kservice may decide the number of

members in the manner suggested in item:s; but the membership should not be

unwieldy.

:iii; The tenure of the council shall be two years. if, however, a member is

nominated in the mid –term of council to fill a casual vacancy, the member nominated

shall continue in office for the remaining period of the council.

:iv; The chief e!ecutive of the organization Kservice or of its divisional K regional Kzonal

branch, as the case may be, shall be the chairman of the %oint council. There shall be a

vice chairman who will be chosen by the worker – members of the council.

9


22/91

:v; The %oint council shall appoint one of its members as its secretary who will prepare

the agenda, record the minutes of the meetings and report on the implementation of the

decisions arrived at every meeting. The management shall provide the necessary

facilities with in the premises of the organization Kservice for the efficient discharge of

his functions by the secretary.

:vi;The %oint council shall meet when even considered necessary, but at least once in aquarter. 6very meeting shall review the action taken on the decisions of earlier meetings

for an effective follow&up action.

:vii; 6very decision of the %oint council shall be on the basis of consensus and not by a

process of voting it shall be binding on the management and workers and shall be

implemented with in one month, unless otherwise started in the decision.

&nctions of the joint conci#s:

The following shall be functions of the %oint council)

:i; The settlement of matters which remain unresolved by unit level councils and

arranging %oint meetings for resolving inter –council problems.

:ii; 2eview of the working of the union level council for improvement in the customer

service and evolving for the best way of handling of goods traffic, accounts, etc.,

:iii; 3nit level matters which have a bearing on other branches or on the

enterprise as a whole.

:iv; evelopment of skills of workers and adequate facilities for trading.

:v; -mprovement in the general conditions of work.

:vi; 'reparation of schedules of working hours and holidays.

:vii; 'roper recognition and appreciation of useful suggestions received from workers

through a system of rewards.

:viii; iscussion on any matter having a bearing on the improvement of performance of

the organization K service with a view to ensuring better customer service.

Unit Conci#s:

6ncouraged by the success of the Goint 0ouncils scheme in manufacturing and

mining units, a new scheme of workers participation in management in commercial and

service organizations in the public sector, having large scale public dealings, was

announced on ?

th

Ganuary F. The scheme envisaged the setting –up of unit councilsin units employing at least HH persons. The organizations include hotels, restaurants,

99


23/91

hospitals, air, sea, railway and road transport services, ports and docks, ration shops,

schools, research institutions, provident fund and pension organizations, municipal and

milk distribution services, trust organizations, all financial institutions, banks, insurance

companies, posts and telegraph offices the food corporation, +tate electricity boards,

0entral warehousing, +tate warehousing corporations, +tate Trading corporations,

mines and minerals Trading corporation, irrigation systems tourists organizations,establishment of public amusement and training organizations of central and state

4overnment.

&e)t*es of the sche,e :

The main features of the scheme are)

:i; " unit level council, consisting representatives of workers and management of the

organization Kservice, employing HH or more workers, may be formed in each unit to

discuss day –to –day problems and find solutions, but, wherever necessary a composite

council may be formed to serve more than one unit, or a council may be formed

department wise to suit the particular needs of an organization Kservice.

:ii; 6very unit council shall consist of an equal number of representatives of the

management and workers. The actual number of members should be determined by the

management in consultation with the recognized union, registered unions or workers in

the manner best suited to the local conditions obtaining in a unit of an organization, but

their total number may not e!ceed 9. -t would be necessary to nominate suitable and

e!perienced workers from various departments, irrespective of their cadre, affiliation or

status, and not trade union functionaries who may not be actually working in the unit.

:iii; The management(s representatives should be nominated by the management

and should consists of persons from the unit concerned.

:iv;The management shall, in consultation with the recognized union or the registered

union or workers as the case may be, determine in the manner best suited to local

conditions, the number of unit councils and the departments to be attached to each

council of the organization Kservice.

:v; "ll the decisions of a unit council shall be on the basis of consensus and not by a

process of voting, provided that either party may refer the unsettled matters to the %oint

council for consideration.

9=


24/91

:vi; 6very decision of a unit council shall be implemented by the parties concerned with

in a month, unless otherwise stated in the decisions itself.

:vii;The management shall make suitable agreements for the recording and maintenance

if minutes and designate on of its representatives as a secretary for this purpose, who

shall also report on the action taken on the decisions at subsequent meetings of the

council.

:viii; +uch decisions of a unit council have a bearing on another unit of the organization

Kservice as a whole shall be referred to the %oint council for consideration and decision.

:i!; " unit council once formed shall function for a period of three years. "ny member

nominated or elected to the council in the mid –term to fill a casual vacancy shall

continue to be a member of the council for the une!pired period of the term of the

council,

:!;The council shall meet as frequently as is necessary but at least once a month.

&nctions of nit conci# :

The main functions of the unit councils are)

:i; To create conditions for achieving optimum effic%iency, better customer service in

areas where there is direct and immediate contact between workers at the operational

level and the consumer, higher productivity and out put, including elimination of

wastage and idle time, and optimum utilization of manpower by %oint involvement in

improving the work system.

:ii; To identify areas of chronically bad, inadequate or inferior service and to take

necessary corrective steps to eliminate the contributing factors and evolve improved

methods of operation.

:iii; To study absenteeism problem and recommend steps to reduce it.

:iv;To eliminate pilferage and all forms of corruption and to institute a system of

rewards for this purpose.

:v; To suggest improvements in the physical conditions of work, such as lighting,

ventilation, dust, noise, cleanliness, internal layout and the setting up of customers

service points.

:vi; To ensure a proper flow of two –way communication between management and

workers, particularly about matters relating to the services to be rendered, fi!ation of

targets of output and the progress made in achieving these targets.

:vii; To recommend and improve safety, health and welfare measures to ensure efficientrunning of the unit.

9


25/91

:viii; To discuss any other matters which have a bearing on the improvement of

performance in the unit for ensuring better customer service.

P#)nt Conci# :

The plant council is formed in pursuance of the recommendations of the second

meeting of the group on labour at 7ew elhi on 9=th +eptember FE?. The scheme is

applicable to all central public sector undertakings, e!cept those which are given

specific e!emption form the operation of the scheme by the 4overnment. The main

features of the scheme are)

:i; There shall be one plant council for the whole unit.

:ii; 6ach plant council should consist of not less than si! and not more than eighteen

members. There should be parity between the representatives of employees and

employers. 1ne &third of the employees representatives should come from the

supervisory stuff level. -f the number of women employees is ?I or more of the total

work force, at least one representative should be a woman employee.

:iii; 1nly such persons as are actually engaged in the unit should be members of

the plant council.

:iv;-ts tenure shall be for a period of three years.

:v; The chief e!ecutive of the unit shall be the chairman of the plant council. The vice –

chairman shall be elected from among the employees.

:vi;The plant council shall point on of its members as secretary who will be provided

with adequate facilities for the effective discharge of his duties with in the premises of

the undertaking Kestablishment.

:vii; -f a person quits the council for what so ever reason, the member who is nominated

to fill the mid&term casual vacancy shall serve on the council for the une!pired period of

the term of the council.

:viii; The council shall meet at least once in a quarter.

:i!; 6very decision of the plant council shall be on the basis of consensus and not by

voting, and shall be binding on both the employees and the employer. The decisions so

arrived at shall be implemented within a month, unless otherwise stated in the decision

itself. "ll unsettled issues shall placed before the board of directors for their decision.

&nctions of $#)nt conci# :

The plant council shall normally deal with the following matters)

9?


26/91

=A? O$e*)tion)# A*e)s

:i; etermination of productivity scheme taking into consideration the local conditions.

:ii; 'lanning, implementation and attainment and review of monthly targets and

schedules,

:iii; *aterial supply and preventing its short fall.

:iv; 8ousekeeping activities.

:v; -mprovement in productivity in general and in critical areas in particular.

:vi; Luality and technological improvements.

:vii;*achine utilization, knowledge and development of new products.

:viii; 1perational performance figures.

:i!; 6ncouragement to and consideration of the suggestion system,

:!; *atters Kproblems not sorted out at the shop floor level or those that concern more

than one shop, and

=6? Econo,ic )n! &in)nci)# A*e)s

:i; 'rofit and loss statement, balance sheet.

:ii; 2eview of operating e!penses, financial results, and cost of sales.

:iii; 6nterprise performance in financial terms, labour and managerial cost and

market conditions and etc.,

=C? Pe*sonne# M)tte*s

:i; *atters relating to absenteeism.

:ii; +pecial problems of women workers. and

:iii; -nitiation and administration of workers programmes.

=D? We#f)*e A*e)s

:i; -mplementation of welfare schemes, such as medical benefits, housing and

transport facilities.

:ii; +afety measures.

:iii; Township administration and

:iv; 0ontrol of the habits of gambling, drinking and indebtedness among the workers.

=E? Envi*on,ent)# A*e)s

:i; 6nvironmental protection, and

9A


27/91


28/91

:i!; The council shall meet as frequently as is necessary but at least once a month.

:!; The chairman of the shop council shall be a nominee of the management the

worker members of the council shall elect a vice –chairman from amongst themselves.

&nctions of sho$ conci#s :

To achieve increased production, productivity and over – all efficiency of theshop department, the shop council should attend to the following matters)

:i; To assist management in achieving monthly yearly production targets.

:ii; To improve production, productivity and efficiency, including elimination of

wastage and optimum utilization of machine capacity and manpower.

:iii; To specially identify areas of low productivity and take the necessary corrective

steps at shop level to eliminate relevant contributory factors,

:iv;To study absenteeism in the shopKdepartment and recommend steps to reduce it.

:v; To suggest safety measures.

:vi; To assist in maintaining general discipline in the shop Kdepartment.

:vii;+uggest improvements in physical conditions of working –lighting, ventilation,

noise, dust etc., and reduction of fatigue.

:viii; +uggest welfare and measures to be adopted for efficient running of the

shopK

department.

:i!; To ensure proper flow of adequate two –way communication between the

management and the workers, particularly on matters relating to production

schedules and progress - n achieving the targets that have been set.

:!; +uggest technological innovations in the shop.

:!i; To assist in the formulation and implementation of quality improvement

programme.

:!ii;To determine and implement the work system design.

:!iii; To formulate plans for multiple skill development programme.

:!iv; To assist in the implementation of cost reduction programme.

:!v; To supervise the group working system.

:!vi; To ensure a periodic review of the utilization of the critical machines.

9E


29/91

" report of the *inistry of 5abour indicates that the scheme of workers

'articipation in management is in operation in as many as A9 central public sector

undertakings. +ome of these have claimed that participative management is #working

smoothly$ at the shop floor level. These undertakings include the +teel "uthority of

-ndia 5imited :+"-5;., the 2ourkela +teel 'lant, Bharat 8eavy 6lectricals 5imited

:B865;, 0ement 0orporation of -ndia, *ineral 6!ploration 0orporation, 8industan'hoto –films manufacturing company, Bharat 4old mines, 1il -ndia and the 7ational

Te!tile 0orporation.

Wo*e*s *e$*esent)tion on 6o)*! of M)n)/e,ent

1n the recommendations of the "dministrative 2eforms 0ommission made in its

report on public sector undertakings, the 4overnment of -ndia accepted, in principle.

That representatives of workers should be taken on the Board of irectories of public

sector enterprises. " few notable features of the scheme are )

:i; The representatives of workers on the Board should be those actually working inthe enterprise.

:ii; To begion with, participation should be limited to companies which employ ,HH or

more persons :e!cluding casual and badli workers;

:iii; The definition of # workmen, as given in the -ndustrial disputes "ct, F


30/91

:i!; The reforms commission did not favour a two –tier representation, i.e., a

supervisory board and the smaller *anagement Board.

&nctions n!e* the sche,e

The employees representative Kworker irector participates in all the functions of

the board. Besides this, they also review the working of shop and plant councils and

takes decisions on matters not settled by the council.

Wo*e*s $)*tici$)tion in sh)*e c)$it)#

The +achar committee had, in its report to the 4overnment observed) # Luite a

ma%ority in favour of the suggestion that, in all their future issues of shares, the

companies should reserve a portion of their new shares, say about HI to ?I,

e!clusively for the workers, called the workers shares. These shares, in the first

instance, must be offered to the employees of the company, failing that they should be

offered to the e!isting shareholders or the public. or that purpose, section E of the "ct

should be suitably amended. +ection of the "ct should also be amended, permitting

companies to give to the employees a loan up to 9 months salary or wages, not

e!ceeding 2s. 9,HHH for the purpose of the shares of the company$. This scheme,

however, has not found favour with the industries in -ndia.

Othe* $)*tici$)tive fo*,s

S)fet" Co,,ittee :

0hapter –-/ of the factories act, F


31/91

& "pproval of safety training schemes and outlays.

& ormulation of safety standards.

& "ssist the safety department in the elimination of industrial hazards.

& 6ncourage employees to involve in the safety movement by rendering practical

suggestion and practicing safety provisions.

& 1rganising and conducting social and cultural activities like dramas, dances onsafety.

& The improvement of the roads and street lighting in the colony.

& -nculcating and developing among the residents a sense of belonging and self

imposed discipline.

& iscourage rearing of cattle viz. Buffaloes, cows, goats and sheep etc.

& 6liminating the menace of stray dogs and pigs in the colony.

& 6nsuring an overall improvement of the colony for a happy, healthy and safe living in

the colony under good hygienic condition.

& -nculcate safety consciousness among the employees and encourage the

e!perienced to guide the new entrants in developing positive attitude for

safety.

& To e!amine the requirements of the various departments for safety and

welfare equipment.

Co#on" i,$*ove,ent Co,,ittee:

0olony improvement committee consists of representatives of management and

the recognized union Kassociation including officers association and +0 K+T employees

welfare association and other as may agreed upon mutually.

Objectives @ &nctions

To discuss and suggest ways and means for the improvement of the hygienic,

health and sanitary condition in the colony.

C)nteen Co,,ittee:

3nder section


32/91

3nder 2ule H of the ".'. actories 2ules, the *anager of every factory shall

appoint a C)nteen Co,,ittee which shall be constituted and consulted from time to

time for the following)

& the quality and quantity of food stuffs to be served in the canteen.

& the arrangement of the menus.

& times of meals in the 0anteen.

& any other matter as may be directed by the 0ommittee.

The 0anteen *anaging 0ommittee shall consists of an equal number of

persons nominated by the occupier and elected by the workers. The number of

representatives elected by the workmen shall be in the proportion of one for every HHH

workers employed in the factory provided that in no case shall there be more than ? or

less than 9 workmen on the committee and in cases where the workmen refuse to elect

their representatives, the occupier shall himself nominate the workers representatives in

consultation with recognized union. The occupier shall also appoint from among the

persons nominated by him a chairman to the canteen managing committee. The

manager shall decide and supervise the procedure for election to the canteen managing

committee. The tenure of the committee will be two years from the date of its

constitution.

E,$#o"ees P*ovi!ent &n! Act '>2.:

This "ct is applicable to all industrial establishments employing 9H or more

persons and other establishments so notified by the 4overnment from time to time, it

aims at providing monetary relief to the employees and their dependents at the time of

employees retirement, discharge, retrenchment or death, by providing for savings during

the employees working lives. The scheme framed under the "ct is administered by the

0entral Board of Trustees constituted by the central 4overnment.

7oint cons#t)tive ,)chine*" in Gove*n,ent:

=9


33/91

The second pay commission constituted in F?F recommended the setting up of

such a machinery mainly on the model of whitely council in the 3.C. The 0ommission

defined the ob%ectives of the machinery as promoting harmonious relation and for

securing the best measure of 0o –operation between the 4overnment in its capacity as

employees and the general body of its employees in matters common concern and with

the ob%ect of further increasing the efficiency of public services.

Othe* Co,,ittees:

The employer may also constitute the following committees :as per requirement;

in consultation with recognized trade union Kassociation. The structure of the committee,its functions and other matters may be decided in consultation with recognized unions.

Rec*e)tion c#b:

or the purpose of organising the recreational activities in the colony.

S$o*ts Co,,ittee:

or promoting sports activities among employees and for organising games

Ksports and tournaments.

E!c)tion)# Co,,ittee

or supervising the efficient and effective functioning of the various education

institutions run bv the organization for the benefit of the children of the employees.

Wo*e*s $)*tici$)tion in fo*ei/n cont*ies:

*any developed and developing countries have adopted various measures either with

help of legislation or persuasion to provide workers participation in management at

different levels of participative forums. But the nature and form of workers participation

differ from country to country because they are guided by different ideological,

economic and political considerations. 5et us discuss briefly the models of workers

participation in management in Gapan, the G.C. 4ermany and Dugoslavia as follows)

'( 7APAN:

==


34/91

-t has a decentralized collective bargaining system. 3nions are organized at the

enterprise levels, including first line supervisions. Goint consultative committees have

emerged at the enterprise, plant and workshop levels. ew companies have workers

representatives at the Board level.

.( The Unite! St)tes of A,e*ic):

-n the 3.+.". quality circles is getting popular as a system of workers

participation in management. Luality circles is a team of ? to 9H employees doing

similar work that meets regularly to analyse and solve work related problems(. 5eading


35/91

commercial director and a labour director. The labour director is nominee of the

workers.

2( ;/os#)vi) :

-n Dugoslavia, the power in industrial enterprise vests in the workers council.

The workers council consists of ? to 9H members elected on a two –yearly basis. "part

from these works councils, three quarters of the management board numbers are made

up of workers directly engaged in the production.

Thus, workers in Dugoslavia have a share in the income of the enterprise, and

they are also a part of total system.

Metho!o#o/" of the st!":

or this study, the relevant data have been collected both from the primary and

secondary sources. While secondary data is drawn from the relevant reports and books

of the 8industan +hipyard 5imited, the collection of primary data is based on the

questionnaire administered among the employees of 8industan +hipyard 5imited. "

sample survey of ?H respondents is taken for this purpose. The basis of the sample is

purposive and care is taken to cover different sections of people in 8industan +hipyard

to e!tract their opinions about the way in which the scheme of participative

management is being implemented.

Li,it)tions of the st!":

The sample selected may not represent the entire population due to the lack of

the time and non availability of workers in some sections. Therefore the analysis is kept

limited to the representative opinion of ?H people only.

=?


36/91

ORGANISATION PRO&ILE

Shi$ 6i#!in/ In!st*" in INDIA - AN Ove*vie9 :

-n -ndia +hipping and +hipbuilding industries have had on unbroken tradition

e!tending over AHHH years. +ince the days of the -ndus /alley 0ivilization to the advent

of the British rule, the -ndian seafarers had been known for their spirit of adventure and

-ndian ships for their e!cellence and elegance.

3nder foreign domination, the shipping -ndustry suffered a serious set back.

6ven during those dark days some -ndian industrialists of /ision and will power

continued a relevant less war against vested interests to save the industries from

complete collapse, -ndian shipbuilding industries is being resurrected on the

foundations laid by these pioneers. -t is a gaining ground and recognition too.

The people of *18"7G""2"1 and 8"2"''" manifested amazing energy

in maritime enterprise. +lat pigget mentions that #8arappan traders carried considerable

business with +umerian cities$, "rcheological e!cavations carried out during the past

decade have bought to light a dozen 8arappan parts dating back to 9


37/91

" number of foreign travelers, have spoken highly of the e!cellent workmanship

of the -ndian shipbuilders. *arco polo, who visited -ndia in the late = century, saw

ships, manned by a crew of =HH, which could carry up to AHHH basket of pepper.

"n -talian travelers, 7icolo 0onte, belonging to the earlier part of ? th century,

describer interesting details of shipbuilding in -ndia. 8e writes #&&& The nation of -ndia

built some ships larger than ours capable of containing 9HHH bulls with five sails and asmany masts$.

Seven /ene*)tions of W)!i)ns :

+even generations of master builders of a single 'aris family of 51WG66

7"++"2-66 W"-" were the head builders in the Bombay building dock

continuously from F=A to E=. The dock established a name for itself far and wide. -7

about ?H years the wadial built =?H vessels. They were the regular suppliers of various

types of ships the 6nglish and other nations.

6*ief %isto*" of the O*/)nis)tion :

The decline of -ndian shipping began after E


38/91

&o*,)tion of %in!st)n Shi$")*! Li,ite! :

The 4overnment has finally decided to go ahead with the take – over proposal. "

new company under the corporate designation of 8industan shipyard ltd. Was registered

on 9st Ganuary F?9 with the government holding two – third share of capital and

scindias holding one – third of shares. +cindias signed an agreement for sale on 9= rd

ebruary, F?9. 8industan shipyard 5imited took possession of the /isakhapatnam yard

on st *arch F?9.

This was perhaps one of the rate instances when a private company initiated

proposals and willingly handled over an industrial establishment to the government

because the company realized that it could not keep the industry going.

G*o9th )n! Deve#o$,ent of %in!st)n Shi$")*! Li,ite! :

The 8industan shipyard emerged as an emblem of +wadeshi spirit. The

industrialism of the pre&independence era were actuated by high ideals of achieving self

– reliance in the field of shipping. -n FA, the government has taken the remaining one

– third shares from scindia and the 8industan shipyard limited became a fully pledged

public enterprises.

+oon, after the take over, the shipyard swing into action and within = months

completed all the uncompleted ships. -t has order of more than seven ships, an of them

being diesel motor ships with a deed weight of HHH to EHHH tons each.

&*o, Ste), to Diese# :

"ll the time of the take – over the requisite e!pertise and technical known how

in shipbuilding war not available with the company. -n Guly F?9, the 8+5 therefore

entered into agreement with +10-6T6 "77D*6 does "T65-62+ at 08"7T-62+

6 5" 51-26 'aris for technical aid. The rench consultants recommended an

e!haustive development scheme aimed at raising production capacity to a ma!imum of

A to E ships an year.

With the termination of agreement with "05, the shipyard then entered into

technical collaboration with the west firm of 53B60C62 5"762 W62C6 to

build 53B2C67T type of vessels ranging from F?HH to 9?HH WT.

*ean while in FA< arrangements was made with *-T+3-B-+8- of Gapan for

supply of an advanced design and drawing for a new series of vessels.

-n the same year, shipyard broke new grounds in turnings out a naval vessel

meant for 8yderabad surveys and equipped with electronic devices -7+ 8"2+8"C

with diesel electric propulsion.

=E


39/91

"nother notable achievement was the construction of 2"G672", a training

ship to replace T+ 362-7. esigned by 8industan shipyard limited itself the ship

was launched on 9?th "pril F.

Shi$ Re$)i*s :

Within years of the government take&over of 8+5 it was realized that the ship

construction should be supplemented with repair work. +hip repairing is one of the fewenvitable industries where the customer brings foreign e!change earnings to the

doorsteps.

" proposal to building a dry dock was approved by government as early as early

as in the year F?=&F?


40/91

To enable 8+5 to serve the growing needs of maritime industry a massive

e!pansion program at the cost of 2upees ?? crores was completed in FEA.

P*esent Inf*)st*ct*e

-73+T2-"5 +8-'D"2 5-*-T6 >s yard is spread over an area of about

=,HH,HHH sq.mts workshop and facilities are systematically laid out to ensure

unidirectional how of material equipped with the most modern and outstandingtechnology and machinery with adequate capacity and capability all over has itself

sustained.

B)#it" Ass*)nce

With the accent placed on a quality improvement in the construction, 8+5 was

award -+1 –FHH9 for industrial structures in ecember FFA. -ncidentally this is a

singular distinction id that 8+5 was the first shipbuilding yard in the country to have

obtained the accreditation.

O*/)nis)tion St*ct*e

" well defined organization with horizontal and vertical linkage takes care of all

the activities, operations and function of 8industan +hipyard. The organization is

headed by chairman and *anaging director assisted by a 4eneral managers over all in

charge of the production department. The general manager interim controls the work of

general 4r.-- and eputy general manager of various department some of the eputy

general manager(s are however directly reporting to chairman and managing director.

The personal division is headed by eputy 4eneral *anager :personnel and

"dministration;. 8e is assisted by chief manager :4eneral +ervices; *anager :12;,

*anager :W0;, *anager :+060;, *anager :W6C;, eputy managers and +enior

'ersonnel 1fficers in discharging his duties.

The ob%ective behind the divisionalisation is to make the heads more accountable

and responsible for their decisions as well as to rise the output of each person under

their division.

Achieve,ents of %in!st)n Shi$")*!

8industan shipyard has so far built A vessels representing ?,F?,HHH WTK


41/91

The authorized capital of the company stood at 2s.E crores in F


42/91

-ndian and foreign ship –owners alike. With this modesty record, the shipyard is poised

to do much better in the coming years.

The shipyard and its part has introduced a number of welfare measures, for the

benefit of the workers.

Sbsi!ie! Lnch

+ubsidized lunch is provided to the employees. The shipyard has built a fully

equipped and spacious canteen –cum – dining hall for the workers, which can

accommodate about ?HH workers at a time this in addition to the old canteen building.

"nother dining hall with a capacity of A?H people will be commissioned in ecember

F?.

Me!ic)# Rei,b*se,ent

The staff and workmen en%oy the facility of reimbursement of medical e!pensed.

3nder the scheme, e!pensed incurred on medical treatment by the staff and workmen

and their families are paid back to them, sub%ect to a reasonable ceiling. -n addition, two

will equipped dispensaries one in the residential colony and the other in the yard,

provide free medical treatment to employees and their families.

E!c)tion

8igh school managed by the 4andhigram educational society with liberal grants

from the shipyard has been upgraded to a %unior college. Besides here is an upper

primary school a %unior basic school and a nursery school. "rrangement e!ists for providing elementary education to most of the children of the employees.

%osin/

The housing colony of the shipyard known as 4"7-42"* consists of AHH

quarters, e!isting over an area of


43/91

" non&official welfare committee therefore was formed in Gune FH. The

committee consists of representatives drawn from various categories of employees.

*ost of them are wives of the employees, the committee co&ordinates and promotes

various welfare measures in the field of health education, welfare etc.

"s a result of positive direction given to the industrial relations policy, there has

been not only an atmosphere of cordiality prevailing in the shipyard, but alsoincreasingly enthusiastic co&operation from the employees.

%,)n Reso*ces

'rofessionalism With *ulti&isciplining interface is the present characteristic

feature of the management of 8+5. +upervisory grades are characterized by substantial,

cr


44/91

7et fi!ed assets A


45/91

. Gala pushpa HF&H&F?9 =A Gala Cendra A&H


46/91

EH /ichva yash

&H=F9

E *./ +T2"-T

-065"7 H?&H?&9HHAE /ishva mamta

9=&E&F9F * 5 7-5"*B"2 9&&9HHA

E9 /ishva bandhan A&=&F= 9H WT B35C &?&9HHEE= +tate of 4u%arat =&A&FE 9 5"C+8"66' 9A&A&9HHEE< +amudrika -/

9


47/91

PERSONNEL MANAGEMENT IN %SL

Pe*sonne# P*ofi#e

'rofessionalism with multidisciplinary interface is the present day characteristic

feature of the management of the 8industan +hipyard +upervisory cadres are

characterized by substantial , craft&orientated e!perience, knowledge of theory in

relevant areas and leadership qualities.

"s far as the ship building is concerned , 8industan +hipyard is a rich

repository of specialized as well as versatile skills. -t provides direct employment

for about


48/91

a; To achieve an effective utilization of human resources in the light of

organizational goals.

b; To establish, maintain and review an appropriate organizational structure and

develop desirable and productive working relationship among the members

of the organization.

c; To ensure integration of individuals into effective groups with in theorganization by matching individuals with that of the organization in such

a manner that the employees feel a sense of involvement , commitment

and loyalty towards it.

d; To generate ma!imum individual K group development with in the

organization by offering opportunities for advancement of employees

through training , %ob rotation and career planning etc.,

e; To recognize and develop approaches to satisfy individual aspirations and

group e!pectations , providing scope for advancement commensurate with

contributions , economic and social security, protection against hazards of

life such as illness , old age, disability, death etc., and

f; To maintain high morale and harmonious relations with in the

organization by creating a suitable culture and improving the conditions

of working.

To achieve the above ob%ectives, The 8industan +hipyard 5imited has been

reorganized.

MAN-POWER PLANNING

The need for 8uman 2esource 'lanning is no less important .

To survive and prosper , any organization needs well qualified , well motivated

employees available at right time . This involves a system for careful advanced

planning for its 8uman 2esource and pro%ection of present and future needs both in short term and long term perspective – organizations that cannot secure

the skills they require in terms of their present as well as future need will

face a barrier to growth and

effective service . 5ong term neglect of such planning will make the current

planning more difficult . urther , without an over all man – power plan ,

destructive problems are bound to occur . -t is therefore , survival should adopt

a suitable manpower planning system so that a planned man power flow at

different levels of requirement along with there further developments take


49/91

place smoothly . *an power planning is thus the process : including forecasting

, developing and auditing ; by which an organization ensures that it has the

right number of people and the right kind of people at right places , at the

right time , doing things for which they are economically most useful.

Objectives Of M)n$o9e* P#)nnin/

; -nventorying the present manpower resources and analyzing the

egree to which these resources are employed optimally.

9; orecasting future manpower requirement both long and short term.

"nticipating manpower problems by pro%ecting present resources into

the future and comparing them with the forecast of requirements to

determine their adequacy both qualitatively and quantitatively.

=; 'lanning necessary strategy and programs of recruitment, selection, training,

'lacement , utilization , transfer , promotion and development

keeping in view the short term and long term corporate plans and

ob%ectives.

STRUCTURE O& MAN-POWER RESOURCES)

The manpower resources in 8industan +hipyard for the purpose of planning,

0an be divided into three categories viz., :i; 6!ecutives :ii; +taff

:iii;Workmen.

MANPOWER AS on '-1-.'.

1-062+ ) AEA

+T" ) F9

W12C*67 ) =9H? NNNNNNNN

T1T"5 )


50/91

Rec*it,ent Po#ic" @ R#es

The sources of recruitment are normally employment e!changes, open

market , 0ampus interview , recognized specialized associations and agencies,

deputation from central K state government , dependants of employees died,

meritorious sportsmen and other e!&servicemen agencies. -n 8+5 , there is noe!ternal recruitment at present. The e!isting vacancies are

filled internally by giving necessary training to the e!isting employees. 8+5 tries to

reduce man power.

Objectives of Rec*it,ent

To assess and 'lan the man power requirements and budget the

requirements of the requisite human resources with necessary qualifications ,skills , merit and suitability in accordance with the organizational requirements.

To ensure that company attracts and retains the best of personnel available in its

/arious areas of functioning.

To focus on the placement of employee in %obs which they are best fitted physically,

mentally and tempermentally where they have strong e!pectation of being well ad%usted

to their work and to the working environment.

Se#ection Metho! :

The company may select candidates through one or all the following selection

methods

; competitive, "ptitude K Technical test

9; 4roup task

=; 'ersonnel interview

T*)inin/ )n! Deve#o$,ent

The training and management development activities of the company form

a part of the continuous process of integrating the organizational needs with the

needs of individuals for growth and development.

?H


51/91


52/91

The personnel and administrative department is being headed by a general

manager :' M ";.

or administrative convinience the personnel and administrative department has

been divided in to following cells with specific functions.

EFECUTI8E CELL

This cell deals with all the development manpower requirements, selection,

placement , performance appraisal , annual increments and disciplinary actions of all

officers.

St*ct*e

& *anager :'ersonnel M legal;

& *anager : 'ersonnel, 6!ecutive and +taff;

& eputy *anager

& +ection officer

& +taff member

STA&& CELL

This cell deals with all the matters of the employees in the staff and

categories regarding manpower requirements , manpower planning and

development, recruitment , selection , placement , training needs , career planning etc@

. -t also deals with establishment matters like leave provident and statutory

returns , regulations of salary , allowances over return etc of all staff managers.

St*ct*e

& *anager

?9


53/91


54/91

St*ct*e

& *anager :'ersonnel , Workmen;

& eputy *anager

& +ection officer

& 0ontract section

& 'ersonnel section

& 6ight senior assistants

& Gr. "ssistants.

CO-ORDINATION AND LEGAL CELL

-t was previously known as 12 :organizational development and

research; cell.

&nctions

:i; 0orresponding with administrative ministry :ie; ministry of shipping and transport

and other organizations on various matters service conditions of employees, labour

laws etc., in the local courts industrial tribunal& cum& labour work, highcourts ,

supreme court and other statutory authorities.

:ii; 1perations of /2+ correspondence with ministry or '6 regarding the said

scheme.

:iii; 1rganising %oint council meeting and administration of group savings linked

insurance scheme.

St*ct*e

& 81 K *anager

& +ection 1fficer

& "ssistant

& +teno

& "ttendant

WEL&ARE DEPARTMENT

?


55/91

This cell mainly deals with welfare facilities like medical , housing ,

cooperative education , recreation etc. The function of grievance redressing is

carried out by chief manager and one +ection assistant.

St*ct*e

& 0hief 1fficer

& +ection officer

& < +enior "ssistants

& Gunior "ssistant

EMPLO;EES ASSOCIATIONS IN %SL

There e!ists an employees association for officers category of employees

and staff and workers union for staff and workmen category of employees.There

are F registered trade 3nions operating in 8+5 as on 9=&H


56/91

. 8+5 1fficers "ssociation

=. 8+5 Welfare "ssociation


57/91

commensurate with their performance, career development and good will amongst all

employees and respect for the individuals and his human potential, the management has

arrived at sound agreements with union to contribute a healthy participative system for

the benefit of the employees and organization. "ccordingly a two&tier structure has been

instituted to translate the above ob%ectives in to the real practice.

They are)

:a; shop council at shop floor level @ and

:b; %oint council at corporate level

The scheme aims at ensuring an effective two way communication and e!change

of information between management and the employees in order to enable the latter to

have better apperception of the problems and difficulties of the undertaking in its

functioning.

S%OP COUNCILS

The scheme provides for one shop council for each divisionKgrowth asmentioned under, having regard to the type of ob%ectives and number of employees

employed.

Unit cove*e! n,be* of sho$ co,$osition

Conci#s

+teel comple! one a; one shop steward

b; Two union

representatives one

from staff and the other

from workmen.

c; 1ne resource worker

nominated by the chief

manager.

d; 6qual number of

manager representatives.

?


58/91

1ut fit M engineering

comple! one &do& 2 M +2

one &do&

Ten*e )n! othe* $*oce!*)# /i!e#ines

a; each shop council shall function for a tenure of one year with effect from the

date of its constitution. The normal tenure of a member shall be for a period of one year.

-f, however a member is nominated in the mid&term of the council to fill a vacancy

caused by resignation, removal, death etc., of a member, the member nominated in such

vacancy shall continue in office for the remaining period of the term of the shop

council.

7ot with standard the above , any member of the shop council may be changed at anytime at the discretion of the management or the union nominating the member.

8owever, while e!ercising the discretion it shall be ensured that the continued effective

needs of the functioning of the council are not unduly impaired.

b; 1nly such persons who are actually engaged in the shops K departments

covered under the unity indicated above table shall be eligible to become members of

the shop councils.

c; The head of the unit K division K group shall be the chairmen of the shop

council and shall be responsible for holding meetings regularly. The labour union

representative will act as the vice&chairmen and assist the chairmen in all shop council

activities.

d; The shop council shall meet once in a month.

e; "ll decisions of the shop council will be taken on the basis of consensus and

not by voting. "ny unsettled matters or matters where no such decisions can be arrived

at will be referred for consideration of %oint council.

f; The decisions of the shop councils will be implemented by the parties

concerned and a compliance report shall be submitted to the council with in one month

g; *inutes are to be recorded for every meeting and a consolidated note on the

insights gained together with suggestions implemented is to be rendered to 0M* and

other senior officers. 0opies of the minutes are to be circulated to the departments

concerned and also displayed on the department(s notice boards.

h; +uch decisions K matters of a shop council which have a bearing on another shop or departments will be referred for the %oint council for consideration.

?E


59/91

i; 'ersonnel and industrial relations officers earmarked for each of the

comple!es will act as conveners and co&ordinate these councils meetings.

%; *eetings will be attended by 0hief Welfare 1fficer regularly and manager

:industrial relations; where required.

While going through the minutes and other records of the shop council meetings,

it was observed that various points are discussed in the following sequence.

. 2eview of minutes of the previous meeting.

9.2eview of production achievement K performance for the previous

month and production schedule for the present month.

=.Time keeping M discipline.


60/91

7OINT COUNCILS

Co,$osition

The composition of %oint council will be as follows )

a; 1ne steward to be co&opted by the union from among the shop council

stewards.

b; Three union representatives including the 4eneral +ecretary of the 8industan

+hipyard staff and workers union.

c; 1ne resource worker to be co&opted by the union from among three resource

workmen of the shop council.

d; 6qual number of management representatives to be nominated by the 0hairmen

M *anaging irector e!cluding 0 M *.

Ten*e

The council shall function for a tenure of one year with effect from the date of its

constitution. The normal tenure of a member shall be for a period of one year. -f

however, a member is nominated in the mid&term of the council to fill a vacancy caused

by resignation, removal death etc., of a member, the members nominated in such

vacancy shall continue in office for the remaining period of the term of %oint council.

Who 9i## $*esi!e

The %oint council will be presided over by the 4.*. :technical;. or the purpose

of commencing and coordinating the meetings, the manager :12 cell; shall act as the

convener. The 4eneral +ecretary of the union will be /ice&0hairmen of the %oint

council.

Meetin/s

The %oint council will meet once in three months.

-n 8+5 the first %oint council meeting was held on 99&H=&FE= and it was presided over by the chairmen and *anaging irector. *anager :industrial relations;

was the convenor . since, then %oint council meetings are being conducted for every

quarter.

While going the minutes and other records of the %oint council meetings, it was

observed that various points are discussed in the following sequence)

. 0onfirmation of minutes of the previous meeting.

9. 2eview of production performance.

AH


61/91

=. +hip repairs activity.


62/91

Revie9

The structure and functions of the council may be reviewed from time to time for

effecting improvements as required.

GRIE8ANCES REDRESSAL SC%EME

Objectives

. 4rievance procedure in an organization where human relationships are involved

forms an integral part of industrial relations system. " grievance procedure to be

effective should be simple, fle!ible, time&bound and capable of being understood by

ma%ority of employees. -t should also ensure a sense of satisfaction among the aggrieved

employees, participation of employees unions and reasonable e!ercise of authority by

the grievance machinery.

9. 1n the basis of e!perience gained during the last 9 years of working of thegrievance cell which was constituted vide -.1.0*K - 1 K < K F dated .H.FF and

keeping the above ob%ectives in view a review of the present system of handling

grievances is made and the following revised procedure is introduced w.e.f.H.9.E

7ature of grievances

" grievance is an individual complaint or feeling :either real or imaginary; of

dissatisfaction, arising out of management action or inaction. 4rievance constitute a part

of human relationship in an organization and must be given immediate attention to keep

the employee at ease and to maintain high morale among them in order to achieve a

sense of involvement of the employee in the ob%ectives of the organization and the best

possible efficiency in production and productivity.

C#)ssific)tion of /*iev)nces

4rievances are broadly classified into

a; 4rievances relating to conditions of services i.e., affecting the individuals status

such as seniority, promotion, super session, transfers, alleged victimization,

regularization of absence etc.

b; 4rievances relating to work conditions i.e., conditions and environments of

work, general welfare amenities, safety etc.

c; 4rievances arising out of discrepancies in payment of wage such as short

payment, 1.T. allowance etc.

A9


63/91

%)n!#in/ /*iev)nces

The entire yard is divided into the following four zones in order to facilitate

effective and prompt handling of the grievances of the employees.

a; +teel comple!

b; 1utfit comple!

c; ry dock comple!

d; +taff departments

The fo##o9in/ th*ee tie*-s"ste, of h)n!#in/ /*iev)nces is int*o!ce!(

&IRST LE8EL :

-n each shop K department a senior engineer or an officer of equal status will be

designated as #epartmental 4rievances 1fficer$ who will entertain grievances either oral or in writing at the first instance. 8e will e!amine K investigates into the grievance

and counsel the aggrieved employee and resolve the grievance at his level as far as

possible within = days from the date of receipt of the grievance. The welfare officer

attached to the zone will render supporting services to 41 in solving the grievance at

the shop level during his visit to the department in his zone.

The grievances which could not be solved at the level of 141 will be referred to

zonal level grievance committee for e!amination and redressal of the grievances within

? days from the date of receipt of the same from the 41.

SECOND LE8EL :

ONAL LE8EL GRIE8ANCE COMMITTEE =LGC?

This committee will consist of

0hief manager or his nominee :he will preside over the committee meetings;

2epresentative from staff association.

2epresentative from labour union.

Welfare officer :W.1;. :the W.1 will act as convener for the committee in his

zone;.

The welfare officer will collect the unsettled grievances from the 41 and will

analyses and collect necessary data K records and prepare a brief summary of the casesand present the same before the zonal level grievance committee. 3nanimous decisions

A=


64/91

taken by the O 5 4 0 falling within the frame work of the company(s policies and rules

will be implemented by the concerned department after taking approval of the

competent authority wherever necessary. +uch decisions will be communicated by W.1

to be aggrieved employee and also to the concerned department for implementation.

The O 5 4 0 will meet once in a fortnight in the first week and third week of

every month or earlier, if so needed.

T%IRD LE8EL :

CORPORATE LE8EL GRIE8ANCE COMMITTEE =CLGC?

This committee will consist of

4eneral manager

4eneral manager :finance;

1ne representative each from officer(s association K staff association K labour

union.

0hief manager :personnel;

eputy manager personnel :gc; who will be the 0onvenor of the 0540.

The following cases are to be referred to 0540

a; 0ases on which there is no unanimous opinion among the members of O540 inrespect of any grievance.

b; "ny particular grievance which requires to be decide

Workers Participation in Mgt

Documents

Transcript of Workers Participation in Mgt