CHAPTER 4

STUDY OF PARTICIPATIVE FORA AND ITS IMPACT ON PRODUCTIVITY

4.1 This chapter deals with the functioning of participative fora in both the organisations

under case studies A and B. It has been endeavoured to understand how the Participative fora

have been functioning over last two decades, how the transitions been, the shifts in the

subject matter being discussed, how these are being influenced by the management and trade

union activities and whether such participative approaches have impacted productivity as

well as the IR scenario, and whether it has had an impact on the organisational culture

building.

The minutes of the participative fora are retrieved and studied in the case of both

organisations. In addition, a detailed three tier questionnaire was used for gathering data. The

respondents included participants of these fora both from the management and workmen side,

trade union leaders, managers, and also expert IR professionals associated with these

organisations. The data gathered through the responses of the questionnaire will also be

studied in the later part of this chapter. Some statistical presentations with regard to responses

giving insights into its impact on productivity will also be discussed. Views and suggestions

emerged from interactions with IR experts, trade union leaders and managerial personnel are

also elaborated.

4.2 Participative Fora in Organisation A

Keeping pace with the national policy on workers’ participation in industry, the company

made a remarkable breakthrough in having the forum of joint consultation and workers’

participation since the ’70s. It has become an integral part of the industrial relations policy of

the corporation. The joint forum plays a crucial role in achieving industrial peace and

harmony as also in achieving higher production and productivity. This forum of joint

consultation has been winning the confidence of both, the employer and workmen due to its

impartiality, understanding, transparency and integrity.

LABOUR PARTICIPATION AT DIFFERENT LEVELS IN ORGANISATION A

Corporate level

Mine level

(Project level)

Shop Level

4.3 FUNCTIONING OF PARTICIPATIVE FORA

(a) Works Councils

The Organisation has introduced a three-tier scheme in the direction of

workers’ participation. The Joint Councils which have been set up in this three-tier

structure are:

• Shop council (Covering each production area/other areas);

• Project Joint Council-Plant Level (the apex body at every plant/mine)

and

• Apex Joint Council (Corporate Level comprising representatives from

all units

This arrangement has been successfully functioning for more than four decades.

(b) Bipartite Forum

In addition to three-tier councils, this organisation has made an important

breakthrough in persuading the different unions functioning in its production projects

and other units, to come under one umbrella by forming an all-Inia level Federation

called All India Workers’ Federation. It came into existence in the year 1971 and this

federation has helped in the formation of a bipartite committee at the corporate level

in which all the unions affiliated to the federation participate as a group (irrespective

of their recognition by the labour machinery, affiliation to different Central Trade

Unions). This Bipartite Committee has been working satisfactorily and all the wage

settlements and other major issues relating to job specifications, work atmosphere and

other service matters and employment related issues are settled amicably during the

discussions in the Bipartite Committee. A number of sub-committees are formed

comprising representatives of workmen as well as management to deliberate in detail

over specific assigned issues and such committees come to an agreed conclusion

which is finally ratified by the main Bipartite Committee for implementation. These

fora serve a meaningful purpose for a coordinated effort towards cordial labour-

management relations, better performance, better welfare measures and in

maintaining discipline, production and productivity. Different problems are discussed

mutually across the table and are sorted out in a transparent, healthy and amicable

atmosphere. It has been our experience that workers’ representatives have been found

to be increasingly interested in discussing matters of common interest in the overall

interest of the organisation rather than individual cases. Since the introduction of this

scheme, there has been a certain level of maturity in discussions and issues connected

with betterment of the performance of the company and rational solutions obtained.

(c) Important issues discussed in the Shop Council

The following issues are generally discussed in different Shop Councils from

time to time:

1. Production facilities

2. Storage facilities

3. Material economy

4. Operational problems

5. Control of wastages

6. Quality improvement

7. Monthly targets/production schedules

8. Cost reduction programme

9. Cleanliness

10. Industrials hazards/ safety

11. Shop hygiene

(d) Issues discussed in Plant Council viz. Project Joint Council

i. Planning, implementation, fulfilment and review of monthly targets

and appraisal of the future targets.

ii. Profit and Loss statement & Balance Sheet

iii. Review of operating expenses and financial results

iv. Improvement in productivity in general and crucial areas in particular

v. Pollution Control

vi. Housekeeping

vii. Consideration of issues referred by Shop Councils

viii. Evaluation of the suggestions made by Shop Councils under

Suggestion Scheme

ix. Welfare facilities to workmen & township improvements

(e) Apex Joint Council

In addition to the Shop Councils and Projects Councils, the Corporation has

also at the corporate Level, an Apex Joint Council. This Council comprises equal

number of representatives of Management and Federation/Unions. As per the

constitution, this Council meets once in a quarter. The chairman of the corporation is

the Chairman of AJC and the President of the Federation is its Vice Chairman.

(f) Bipartite Committee

At the Federation level, the unions affiliated to the federation have been

functioning in cooperation and in a manner conducive for the success of collective

bargaining. In view of the sense of oneness among the unions at the federation level,

it has been possible to conclude a number of settlements with the federation at the

corporate level covering major issues of employment, revision of wage structure,

promotion channels, job specifications and descriptions, payment of bonus, uniform

service conditions/standing orders etc. concerning the workmen and the corporation

as a whole.

(g) Sub-Committees

For speedy settlement of the problems arising out of major issues pertaining to

industrial relations, depending upon requirements, separate sub-committees are

formed at the corporate level to discuss and sort out these issues. The

recommendations arrived at are subsequently ratified by the main bipartite committee.

In all these sub-committees, there are an equal number of workmen and management

representatives.

(h) Safety

Apart from the Pit Safety Committees with equal representation of

management and workmen functioning at the plant level, a tripartite safety committee

is functioning at the corporate level. In this committee, representatives of the Director

General Mine Saftey (DGMS), management and workmen are members. This

committee meets at regular intervals and discusses and reviews all safety aspects in

mines with a view to reducing accidents and promoting safe working. This is an

ongoing process.

(i) Quality Circles

Quality Circle activities were also started in the corporation during 1985-86.

These quality circles are formed with voluntary participation by a small group of

employees belonging to the same work area or doing similar types of jobs who regularly

meet every week to identify, analyse and resolve work-related problems. These circles

are, however, not substitutes or do not replace various Joint Councils functioning in the

corporation. The quality activities are found to be beneficial to improve productivity,

conservation of energy, reduce wastage etc. but also improve workmen’s contribution

and development of team spirit and leadership qualities in them which ultimately result

in building up a co-operative culture in the organisation.

4.4ASSESSMENT OF FUNCTIONING OF PARTICIPATIVE FORUM

(a) The Joint Management Committees have been very helpful in the evaluation of

production performance schemes in the projects. These have also helped in the

planning, implementation and review of monthly targets and schedules and manpower

planning. In addition, they have given useful suggestions to inspiring safety measures,

welfare programmes etc. Through these fora, the workers representatives acquire full

knowledge of the financial position of the company, and the issues relating to profit

and loss, review of operating expenses, sales realisation, market conditions etc. are

discussed in these fora. Furthermore, the future plans for production and dispatches

(sales) are also discussed with a view to achieving optimum productivity level. The

sharing of vital information concerning physical and financial performance vis-à-vis

targets and constraints has immensely helped in improving the performance of the

company.

(b) As a result of the involvement of workers in various participative fora, the overall

industrial relations situation in the corporation is excellent.

(c) These participative fora have helped in reducing absenteeism at the shop floor level

due to acceptance of the suggestions of council members and counselling to the

workers by the shop council members.

(d) Due to active participation of the shop council members, it generally helps to

smoothen away the friction that sometimes arises between workmen and management

in day-to-day work.

(e) In view of the sense of oneness among the unions at the federation level and in the

participative fora, major issues such as the revision of wage structure, promotion

channels, job description/specifications, incentive schemes, service conditions

concerning workmen are being discussed and settled to the satisfaction of both the

parties.

(f) Nature of the relationship between labour and management and its impact on

participative management.

Strategies/ Tactics

Outcome

(Quality of Industrial Relations &

Attitudes of Parties)

• Mutual Collaboration Agreements integrating the interests of

parties involved and needs of situation

• Use of Facts and Figures Feeling of joint responsibility

• Frank sharing of information Perpetuation of relationship based on

mutual trust and confidence

• Mutual trust and confidence Co-action

4.5 ACHIEVEMENTS IN THE FIELD OF INDUSTRIAL RELATIONS

1. Formation of the All India Workers’ Federation of the organisation by various

recognised/majority trade unions functioning in different units of the corporation,

though not as a registered body, has played a very important role in maintaining

harmonious industrial relations in the corporation. All policy matters concerning

workmen i.e. employment, revision of wages, improvement in the line of

promotion, welfare measures, career progression etc. are discussed centrally by

the management with this federation and its affiliated unions. The system of

bipartite negotiation has been working excellently in principle. This Federation is

unique in the Indian context as different trade unions with different affiliations

come and join under one umbrella and the common banner of Federation for

decision on common policy issues.

2. Seven tripartite Wage Settlements have been signed by the Management with the

All India Workers’ Federation since 1971.

3. Many tripartite settlements have been signed for a revision of job descriptions,

line of promotion for various jobs, induction of diploma holders, ITI certificate

holders, introduction of multi-skill, employee benefits in case of death, medical

unfitness etc, with a view to increasing the production and productivity of different

mines of the corporation.

4. In addition, several tripartite settlements have also been signed with the

affiliated unions at the plant level relating to local issues such as incentive, free

diet etc. Various bipartite fora exist in the corporation. The job of transportation

and loading of fine ore into the railway wagon was being done through contractors.

Even though there was no legal obligation on part of the management to consider

providing regular employment in the project to contract labour, it was done purely

on humanitarian grounds and keeping in view their long service in the project-

related tasks. Being locals of the area, they were officially taken on the company’s

regular rolls by the management. This was done by the signing of a tripartite

settlement in 1991 with the local affiliated unions, thus providing these contract

labour not only direct employment in the organisation but also other consequential

benefits. Prior to such departmentalisation, the contract labour engaged in muck

cleaning and wagon levelling were also departmentalised by the management as a

result of mutual co-operation by the unions.

5. Initially, all the mines of the corporation had different standing orders. With the

help of the All India Workers’ Federation and its affiliated unions, the

management framed uniform standing orders for all the workmen of the

corporation working in various projects/feasibilities which were certified by the

chief labour commissioner (Central) under the Industrial Employment (Standing

Orders) Act, 1946.

6. The Union representatives who are members in the corporate level bipartite fora

are extended TA/DA facilities as applicable to the executives of the company for

attending their meetings. In the production projects, the unions affiliated to the

federation have been provided buildings for their union offices with internal

telephone facility and furniture etc. The trade union leaders are deputed to various

training programmes for their improvement. Workers’ training programmes are

also undertaken at the project level in close association with the Central Board of

Workers’ Education. The unions are also encouraged to conduct adult literacy

programmes for the illiterate workmen with the active material and financial

assistance of the corporation.

4.6 ORGANISATION’S PHYSICAL AND FINANCIAL PERFORMANCE FOR

THE LAST FIVE YEARS

Physical and financial performance and other important factors for the last five fiscal

years are given below:

Description

Fiscal Year

2012-13 2011-12 2010-11 2009-10 2008-09

Production :

Iron Ore

(million

tonnes)

16.97 15.63 15.05 13.57 11.65

Diamond

(carat)

84,348.00 81,251.00 56,955.00 40,230.00 34,201.00

Sales and

other items

Income

(turn over)

1,293.43 1,268.11 1,087.86 844.78 779.58

Profit before

tax

420.18 343.94 316.04 207.72 171.99

Equity 132.16 132.16 132.16 132.16 132.16

Reserves

and Surplus

1,512.75 1,245.27 1,017.10 818.62 695.3

Dividend

paid

39.65 33.04 33.04 33.04 33.04

-30% -25% -25% -25% -25%

Salary/Wage

Bill

171.8 174 164.4 142.6 125.1

Incentive

payments

8.2

OMS- Iron

Ore (tonnes

of

excavation)

16

Total work

force

5,9

Loss of man

hours due to

work-

stoppages

2,4

The following are graphical rep

production of iron ore in the coun

Contribution of Organisation ‘A’

23 5.56 5.88 4.38 2

.8 16.6 16.5 14.6 1

929.00 6,148.00 6,318.00 6,674.00 6

484.00 - 1,488.00 - 3

presentations of the contribution of Organisatio

ntry

’ in the production of iron ore in the country

2.77

3.75

6,703.00

,261.00

on ‘A’ in the

Export vis-à-vis Domestic Supply of the Organisation

Source: Annual Report 2012-13 of Company A

Growth in the Organisation's Iron Ore Production over the Years (2000-01 to 2012-13)

Source: Annual Report 2012-13 of Company A

Pro

duct

ion

(mill

ion

tonn

e)

GROWTH IN THE ORGANIZATION'S IRON ORE PRODUCTION OVER THE YEARS(2000-01 TO 2012-13)

Percentage growth rate over the years (2000-01 to 2012-13)

Source: Annual Report 2012-13 of Company A

4.7 It may be observed that the performance has improved year after year in the

organisation A by creating new records and milestones. All these performances were possible

due to various technological developments introduced coupled with HR interventions. The

top management (consisting of CMD, Directors, Executive Directors and General Mangers)

evolved the company’s strategic directions covering human aspects, as policy for

implementation.

(a) Union – Management Partnership

i) Strengthen the All India Organisation Workers’ Federation

ii) Depute trade union leaders for training programmes

Rat

e of

gro

wth

perc

en

Percentage growth rate over the years (2000-01 to 2012-13)

iii) Sponsor educated trade union leaders to ILO and international programmes

iv) Arrange visits of trade union leaders and workers to progressive participation,

other mines located in foreign countries for interaction with the trade union

leaders/managers of other companies and

v) Improve/expand participative forum

(b) Positive Discipline

i) Develop group work, team based projects to reduce less supervision

ii) Give fillip to the suggestion scheme to be more meaningful and effective

iii) Develop a culture of positive discipline by increasing participation at all

levels

iv) Conduct awareness working for employees and

v) Focus on success stories of disciplined employees

(c) Strategies for personnel policies

i) Change in workplace

ii) Multi-skilling concept

iii) Three shift working

iv) Self-managed teams

v) BPO of non-core activities

vi) Improve communication/information sharing

vii) Hot-Seat change over

(d) Rewards and recognition

i) Career Progression based on performance- Change in Employee Appraisal

System with transparency and focus on self-appraisal to generate maximum

development within the organisation;

ii) Training based on individual appraisal and matching company’s requirement;

iii) Growth through job-rotation;

iv) Recognition by international posting and international training;

v) Merit certificate and sponsored holidays; and

vi) employee stock options

4.8 INITIATIVES UNDERTAKEN IN THE ORGANISATION FOR BETTER

INDUSTRIAL RELATIONS AND HIGHER PRODUCTIVITY

4.8.1 Organisational Climate Survey

The organisation decided to conduct an “Organisational Climate survey” of the

employees. A reputed external agency was assigned this task to have an independent

view. The consultant initially visited all the units to prepare the ground by holding

discussions with a cross-section of employees about imperatives of change, reason for

conducting survey, broad outlines of the questionnaire and the process to be followed

during survey. Suggestions received from the management, trade unions and

association representatives were taken into consideration for finalising the

questionnaire.

There were in all 124 questions (which were statements of conditions, beliefs,

principles and practices) with options given to individuals to leave out those questions

which might not be understood. Total anonymity was maintained. All filled in

questionnaires were received in a box kept at the survey centre. An electronic scanner

was used to extract data from the filled-in questionnaire. Responses were on a four

point scale, one of the questions sought 5 important remedies to achieve a quantum

jump in performance. In all, about 1000 employees (selected at random by computer)

at various levels took part in the survey which was a one day process. More than 91%

expressed that they enjoyed being part of the survey process and an equal number

expressed pride for working in the organisation. The organisational climate survey

revealed the following key learning and selected remedies:

a) Key learning

i) Experience of a strong sense of belonging, and pride of being part of the

organisation

ii) Support expressed for multi-skilling, improved technology, people focus and

maintenance systems

iii) Innovation and creativity have to be stepped up

iv) Functional compartments have to be broken and process orientation has to

come in and

v) Preference towards decentralisation and empowerment

b) Selected Remedies

i) Get improved equipment/technology

ii) Improved maintenance practices

iii) Improvement in people involvement

iv) More opportunity to employees to express their ideas and

v) Communication with employees about how changes in the industry would

affect the organisation

4.8.2 Trade union leaders’ alignment programme

This programme was conducted by a reputed external agencies in three stages for 25

leaders of trade unions functioning in various units of the organisation. In Stage-1, of

the workshop, the trade union leaders were involved in matters connected with:

• Environment scanning

• Leadership development

• Inter-personal relationship

• Agenda for change at trade union level

• Expectation of change at management level

In Stage-2 of the workshop, the trade union leaders were actively engaged in

• Developing vision and strategy for trade unions

• Member-centric activities

• Strategies for healthy growth of the organisation

• Formulating agenda for joint session with top management

representatives

At Stage-3, the workshop had a review of the previous workshop and joint session

with top management people. The union leaders formulated the trade union vision for

• Building a healthy organisation with a happy work force

• Encouraging virtues of work, efficiency, customer focus

• Protecting workers’ rights while upholding the dignity of the

management

In the joint programmes, the focus was on:

• Challenges of changes

• Building a competitive advantage

• Organisation restructuring

• Human Resource Management

INCENTIVE SCHEMES

a. Production-Productivity Scheme

The Incentive Scheme were revised and at the beginning of every fiscal year

reviewed, as a motivating tool for achieving higher production, productivity and

reduction in the costs of production and for providing gains to employees by sharing

gains of productivity with them. The scheme has multi-components to provide

incentives of:

• Basic incentive

• Monthly ad-hoc production reward for achieving monthly target of production

and sales

• Individual efficiency reward for line operators where direct performance can

be measured

• Group Incentive Scheme for fulfilling basic parameters for achieving

productivity in terms of reducing electricity and diesel consumption and

loading time of railway rakes

• Attendance bonus for ensuring physical presence

• Annual Reward for achieving yearly targets of production and sales

Under the scheme, periodic meetings are held to identify the snags and difficulties and

to find out ways and means to overcome shortcomings.

a) Payment by Result Scheme

This scheme provides for payment for achieving the ‘Memorandum of Understanding’

parameters every year to motivate the employees to put in their maximum efforts. The

scheme also provides for close monitoring and timely action to ensure desired results.

b) Hot Seat Change Over Scheme

The Hot Seat Change Over Scheme was introduced as part of an agreement with the

sole bargaining agent, whereby the employees connected with production and

maintenance reach their work-spot 15 minutes before the beginning of their and leave

the work-spot 15 minutes after the end of their shift. This scheme aims towards gainful

utilisation of the first hour and last hour of the shifts. The equipments are handed over

by the previous shift operators and taken over by the incoming shift operators in its

running condition to eliminate idle timing of men and machinery and to achieve 100%

utilisation of the equipment.

The scheme provides for attractive financial benefits (1) in the form of payment for

their participation in the scheme and (2) payment for achieving the production target

fixed for each shift. This scheme aims towards improving production by 20 to 25%.

4.8.3 Other Initiatives introduced by the Organisation under Case Study A

a) Focus Development Scheme (FDS):

This scheme has the following objectives:

• Organisation Development is a function of individual development

• Development is focused on business needs

• Training accounts for 7% development and with Assignments-in-

place (AIP) it will rise to 32%

• The individual should own and drive his development needs and the

company would support such efforts

The scheme had two workshops followed by selection of assignment in Place (AIP),

presentation of the AIP plan and AIP results, and a review of the FDS by top

management team.

b) Developing Future Managers Programme

This programme targets young, qualified, proactive and potentially strong employees to

prepare a new breed of future managers to (a) face global competition (b) serve as an

internal change agent; and be future leaders of organisation. During the programme, the

participants receive inputs connected with business environment, strategic management,

people skills, financial management, management of change and managing self,

customers and the competition.

The methodology includes four weeks in-company programme at a top management

business school, six months projects work followed by presentation of a report,

implementation and follow-up.

c) High Performance Work System (HPWS)

In all new projects, a high performance work system has been introduced for achieving a

lean and flat organisation with multi-skilling or flexible job roles with teamwork as its

process orientation. The scheme provides for imparting training to the workers, to reduce

the supervision, to empower workmen to take decisions on day-to-day shop floor issues.

While the scheme is exclusively workers-oriented, the supervisors and managers act as

facilitators under the programme.

d) Jeevan Yatra Programme

This is yet another programme oriented towards workmen and hence the training is

worker-driven. The objective of the programme is to sensitise participants about their role

as a good parent, son, brother, spouse, and colleague at work place and above all as a

good citizen. The scheme focused on the evils of alcoholism, causes of absenteeism,

quality of family life, importance of health, safety etc. The corporation took feedback

from the family members of the worker to understand and monitor the change in his

behaviour, after attending the programme. This also helped in evaluating the usefulness of

the programme.

e) Employee Performance Appraisal

The Annual Employee Performance Appraisal System was changed. Before embarking

on the change, employees were consulted and their suggestions were taken. An external

consultant was engaged to devise the system with the association of internal HRD

personnel and the appraisers were apprised of the new system by training programmes.

The system was implemented after a thorough study of the needs of the organisation and

different formats were devised to cover different levels. The employees rated themselves

as self-appraisal about their jobs, behavioural dimensions, overall assessment and

strengths, and areas of improvement. Key performance areas are agreed between the

appraised and the appraiser. The latter guides the former appraise according to the

company’s objectives and a six months review is provided. At the end of the year,

achievements are analysed and recorded.

f) Multi-skill Concept

Under the multi-skill concept system recently introduced by the corporation, in

consultation with unions, necessary on-the-job and theoretical training is given by the

corporation to acquire additional skills by the workmen, to increase their employment

potential/job enrichment. It also aims towards elimination of erroneous and wasteful work

practices for achieving higher productivity with the introduction of computerised

attendance recording. Certain posts have been identified as being redundant and will be

abolished. The incumbents of these posts would be redeployed after imparting skill

training to them for productive employment. It also provides for time-bound promotion

avenue of workmen as better career progression.

g) Three Shift Operation in Mines

Due to historic reasons in India, mining is confined to two shifts and the third shift is

earmarked for maintenance. Hence, this organization was no exception. Further, during

the monsoon period (almost five months), due to heavy rains in some mines, the night

shift was invariably declared as the maintenance shift. This resulted in affecting the

machine power productivity as the machinery was idling and consequently generated a

loss in manpower productivity. This myth was broken after proper involvement and

education of workmen with proper statistics towards loss of production and loss of

incentive earnings to the workmen and three-shift production was successfully

introduced.

h) Approach for Productivity Enhancement through process working

In mining operations, persons from various disciplines like mining, geology, mechanical

maintenance, electrical maintenance and the crushing plant are involved. Close

coordination among these persons is necessary to ensure a continuous flow of production

from the mine to the crushing plant. This approach also served towards optimisation of

results/working within functions, optimisation of material productivity, optimum

utilisation of resources like manpower, electricity, diesel, etc as the objective of this

scheme. The objective of this approach is to design, facilitate and institutionalise a

process-based method of working instead of the existing function-based method to

increase to productivity and create greater fulfilment for people. An external consultant

has been engaged for this approach before implementation which involves holding of two

workshops for the participants to make them aware of the process, the existing practice. In

the second workshop, the task is to identify the process tools, job roles and skills with

post-workshop assignment and periodic follow-up facilitation and monitoring and

reviewing after each workshop. This approach is being tried in one of the production

mines and depending upon the outcome and success of this approach, this would be

implemented in other projects.

i) Business Process outsourcing

With a view to increasing job opportunities, non-core activities like education, health,

house-keeping, canteen service, transportation facilities etc. have been thrown open to the

cooperatives formed by the employees or promoted by the trade union. The corporation

also extends financial and other assistance to such societies, providing livelihood and

employment opportunities to the local population, retired employees and children of

employees.

j) Skill Development Scheme

The organisation has introduced a unique ‘Skill Development Scheme’ for the educated

unemployed youth of the villages of the projects. The scheme provides them both on-the-

job and theoretical training for a period of one year by providing them financial and other

assistance to increase their employability. This is in addition to the schemes formulated by

the governments for imparting training to apprentices under the relevant status.

k) Community Development Plans

The Corporation has also formulated a ‘Community Development Plan’ for the adjoining

villages of the project as a good corporate citizen, in a structured way. The unions and the

village leaders are consulted in advance for identifying various developmental needs

which are essential for the villages. After a consensus has reached, these initiatives are

implemented by the corporation at its expense. In all such work, the villagers of the

respective villages are engaged as paid labour, thereby providing them livelihood,

employment and a sense of belonging. The company spends around Rs.30 million every

year for undertaking such programmes.

The initiatives taken by organisation under case study A, clubbed with the impact of

participative fora culminated into a highly positive impact on its productivity and

organisation culture. The contribution of successive managements and the workforce

represented by the unique federation of unions has been one of the most significant factors

responsible for the success story of the organisation. There has been no ambiguity with

regard to the duties and responsibilities of workmen at different levels and the different

disciplines due to agreed job specifications/descriptions. In industrial relations, co-action

has the cardinal principle or essence of enabling environment. Transparency, fairness and

protection of mutual interests have been the prime consideration while the company’s

growth and interests have been of utmost importance. Coactions have neither

overshadowed the rights of workers’ and their representatives; nor has it diluted the

managerial prerogatives and authority.

4.9 Study of working of Participative Fora in Organisation ‘B’

Industrial relations has been a vital subject in organisation B. The study of secondary data has

revealed that while participative fora worked effectively, it created an environment for higher

productivity and conducive industrial relations scenario. The study of various participative

fora has been studied in this chapter.

Organisation B is a big industry employing approximately 1700 people besides 3000 contract

workers. During the past two decades, it has witnessed many ups and downs during the past

two decades, adverse situations and a volatile IR scenario. Production was at its lowest in the

year 2004. In order to build positive organisational culture and to enhance the relation of

employees and the organisation, various innovative practices were implemented. Qualified

and experienced HR heads of organisation B inducted in 2007 played an important role in

bringing the IR situation under control, thereby creating a conducive and positive

environment for higher productivity, which in turn resulted for better organisation culture.

The study of critical paths for IR in organisation B tells various lessons about success and

failure. Due to the recent improvements and innovation in IR, the organisation has been able

to stabilise its functioning and has raised the satisfaction among the workforce.

i. The Participative Fora

In organisation B the following participative fora exist to facilitate Workers

Participation Management, and meetings are carried out periodically for better

functioning:

a. Shop Council

b. Safety Committee (2yrs)

c. Four Monthly meetings converted to Joint Council

d. Quality Circles

ii. Flow of Communication

Communication in organisation B has been the key to determining its successful

functioning. The organisational communication style has had a deep impact on

motivation, performance and morale of the employees. It provided clarity of

individual roles and responsibilities, effective collaboration in order to enhance

productive team effort and also building relationships between the staff members

and different levels of the organisation. It facilitated the passing of information

relating to policies and other decisions of the company. It was also used to provide

feedback and suggestions to subordinates and peers to enhance the overall

performance and productivity of the unit as whole. It is noted that three major

styles of communication are prevalent in organisation B:

• Downward: flow of information from top level management to those who

are lower level in the hierarchy of the system

• Upward: the information travels from subordinates to superiors and

continues up the organisational hierarchy

• Lateral: this includes horizontal flow of information among people on the

same level and at different levels that don’t have a direct reporting

relationship

The current system of communication existing in organisation B is a bilateral model. Here,

even the employees get a fair chance to put forward their views by approaching the proper,

acceptable channels existing in the organisation, such as the various employees’ unions. In

the case of introduction of new policies or schemes, the IR department calls for meetings of

all existing departments, where they are explained the details of it. The information flows

from the Chief General Manager (CGM), HR&A to the IR head to the unions. In case the

unions feel the need of to alter the existing policies or schemes or introduce a new one, a

charter of demands is drafted and put forth to the IR head. The IR head then discusses the

same with CGM (HR&A) and then to the top management. The grievances and other

individual issues are related to the immediate officer, which are thereafter referred to the

higher level according to the seriousness of the issue. Organisation B has also taken a note of

the recent September 2010 amendment to the Industrial Disputes Act, 1947, which has led to

emphasising redressal of a dispute at the shop floor level.

4.10 Schemes and Systems used in organisation

The introduction of various schemes in an organisation helps in building a better

relation between the employees and employers and making the employees aware that they are

a valuable resource to the company. Besides, good processes like a performance appraisal

system, performance linked incentives and so on, help in better functioning of a system.

Organisation B has various schemes and processes that facilitate the development of a

healthy organisational culture, such as the subsidy scheme, medical reimbursement schemes,

welfare schemes, award schemes and several other schemes introduced for the betterment of

the workmen. The processes like performance appraisal, performance linked incentives,

grievance settlement scheme, various differentiated wage scales and career development path

(i.e. line of promotions) helped in maintaining a positive and fair work environment. They

also helped in enhancing productivity, developing better employee-employer relations,

resolving industry related issues, employee satisfaction and overall attaining of organisation’s

goals and objectives.

Flow chart of Organisation B.

Corporate level

Unit Level

Shop Level

4.11 FUNCTIONING OF THE PARTICIPATIVE FORA

(a) Work Councils

The Organisation B has introduced a three-tier scheme in the direction of workers’

participation. The Joint Councils which have been set-up in the three-tier structure are:

• Shop council (Covering each production area/other areas)

• Project Joint Council-Unit Level (the project joint is functioning for all the three units

of organisation B) and

• Quarterly meeting by CMD is functioning as Apex Joint Council at the corporate

level

This arrangement has been successfully functioning for more than four decades as of now.

(b) Four Monthly Meetings headed by the Director

All the unions functioning in organisation B have meetings in a manner conducive for

the success of collective bargaining. In view of the sense of oneness among the unions at

the corporate level, it has been possible to conclude a number of settlements of mutual

interest in the areas of production and productivity at the corporate level covering inter-

alia other major issues of employment, revision of wage structure, promotion channels,

job specifications and descriptions, payment of bonus, uniform service

conditions/standing orders etc. concerning the workmen of the corporation as a whole.

(c) Important issues discussed in the Shop Council

The following issues are generally discussed in different shop councils from time to time:

1. Production facilities

2. Storage facilities

3. Material economy

4. Operational problems

5. Control of wastages

6. Quality improvement

7. Monthly targets/production schedules

8. Cost reduction programmes

9. Cleanliness

10. Industrials hazards/ safety

11. Shop hygiene

(d) Issues discussed at the unit Level

i. Planning, implementation, fulfilment and review of monthly targets and appraisal

of the future targets

ii. Profit and loss statement & Balance Sheet

iii. Review of operating expenses and financial results

iv. Improvement in productivity in general and crucial areas in particular

v. Pollution Control

vi. House-keeping

vii. Consideration of issues referred by Shop Councils

viii. Evaluation of the suggestions made by Shop Councils under the suggestion

scheme

ix. Welfare facilities to workmen and township improvements

(e) Sub– Committees

For speedy settlement of the problems arising out of major issues pertaining to industrial

relations, depending upon requirements, separate sub-committees are formed at the corporate

level to discuss and sort out these issues. The recommendations arrived at are subsequently

ratified by the main bipartite committee. In all these sub-committees, there are equal number

of workmen and management representatives.

(f) Safety

Apart from safety committees with equal representation of management and workmen

functioning at the unit level, a safety committee exists at the corporate level as well. It has

management and workmen representatives from various departments. This committee meets

at regular intervals and discusses and reviews all safety aspects of the shipyard with a view to

reducing accidents and promoting safe working. This is an ongoing process.

(g) Quality Circles

Quality Circle activities were started in organisation B during early 1990s. These quality

circles are formed with voluntary participation by a small group of employees belonging to

the same work area or doing similar types of jobs who regularly meet every week to identify,

analyse and resolve work-related problems. The Quality Circle activities are found to be

beneficial for improving productivity, conservation of energy, reduce wastage etc., but also

improve workmen’s contribution and development of team spirit and leadership qualities in

them which ultimately result in building up a cooperative culture in the organisation.

The Joint Management Committees have been very helpful in the evaluation of production

performance schemes in the projects. These have also helped in the planning, implementation

and review of monthly targets and schedules and manpower planning. In addition, they have

given useful suggestions to inspiring safety measures, welfare programmes etc. Through

these fora, the workers’ representatives have acquired full knowledge of the financial position

of the company. Issues relating to profit and loss, review of operating expenses, sales

realisation, market conditions etc. are discussed in these fora. Furthermore, the future plans

for production and dispatches (sales) are also discussed with a view to achieving optimum

productivity level. The sharing of vital information concerning physical and financial

performance vis-à-vis targets and constraints has immensely helped in improving the

performance of the company.

(a) As a result of the involvement of workers in various participative fora, the overall

industrial relations situation in the corporation has been conducive

(b) These participative fora have helped in reducing absenteeism at the shop floor level

due to acceptance of the suggestions of council members and counselling to the

workers by the shop council members

(c) Due to active participation of the shop council members, it generally helped to

smoothen the friction between workmen and management in day-to-day work

(d) In view of the sense of oneness among the unions at the federation level, and in the

participative fora, major issues such as the revision of wage structure, promotion

channels, job description/specifications, incentive schemes, service conditions

concerning workmen are being discussed and settled to the satisfaction of both the

parties

(e) Nature of relationship between labour and management and its impact on participative

management

4.12 ASSESSMENT OF FUNCTIONING OF PARTICIPATIVE FORUM

4.13 ORGANISATION’S PHYSICAL AND FINANCIAL PERFORMANCE FOR

THE LAST FIVE YEARS

Physical and financial performance and other important factors for the last five fiscal years

are given below:

Description

Fiscal Year (Rs. in Lakhs)

2011-12 2010-11 2009-10 2008-09 2007-08

Production 99032 86648 50801 31721

Profit before tax 26479 19732 12592 10693

Dividend paid 3550 2620 1659 1455

Salary/Wage Bill 10708 11080 8354 5725

Total workforce (Nos.) 1667 1701 1620 1621

Loss of man hours due

to work-stoppages 1584 1824 2560 3584 3984

Effectiveness of manpower, production and plant utilisation

4.14 The secondary data as gathered from the minutes of various participative fora has

revealed the following scenario:

Industrial Disputes Arisen

IR activities that affected production days

A study of Shop council: The issues dealt

Four monthl

Sugges

y meetings at Corporate Level- issue

stions scheme- subjects dealt

s dealt

Effectiveness of the Suggestions Scheme

IR issues and effectiveness of Participative Fora

4.15 Strategies/Tactics and Outcome (Quality of Industrial Relations &Attitudes of

Parties)

Strategies/ Tactics

Outcome (Quality of Industrial Relations &

Attitudes of Parties)

• Mutual Collaboration Agreements integrating the interests of parties involved and needs of situation

• Use of Facts and Figures

Feeling of joint responsibility

• Frank sharing of Perpetuation of relationship based on mutual

information trust and confidence

• Mutual trust and confidence

Co-action

ACHIEVEMENTS IN THE FIELD OF INDUSTRIAL RELATIONS

4.15.1 Organisation B has successfully drawn five wage settlements, which have been signed

by the management with the unions. The unique feature has been that the recent two

settlements have been under section 2(p) read with section 18(1) of Industrial

Disputes Act, 1947.

4.15.2 Many tripartite Settlements have been signed for revision of job descriptions, line of

promotion for various jobs, induction of diploma holders, ITI certificate holders,

introduction of the multi-skill concept, employee benefit in case of death, medical

unfitness etc. with a view to increasing the production and productivity of different

mines of the corporation.

4.15.3 The promotion policy and career development plan which was formulated in the year

1988 has now been revised in the year 2008, which has brought a great amount of

satisfaction among the workmen who were stagnating at a particular scale for more

than a decade.

4.15.4 Organisation B could successfully implement post-retirement medical benefit scheme

for the retired and retiring employees.

4.16 INITIATIVES UNDERTAKEN IN THE ORGANISATION FOR BETTER

INDUSTRIAL RELATIONS AND HIGHER PRODUCTIVITY

Organisation Satisfaction Survey:

The organisation decided to conduct an “Organisational Satisfaction survey” of the

employees. A reputed external agency was assigned this task to have an independent

view. The consultant initially visited all the units to prepare the ground, by holding

discussions with a cross-section of employees about imperatives of change, reasons

for the conducting survey, broad outline of the questionnaire and the process to be

followed during the survey. Suggestions received from the management, trade unions

and association representatives were taken into consideration for finalising the

questionnaire.

A questionnaire of 100 questions comprising of statements of conditions, beliefs,

principles and practices was given to individuals. All filled questionnaires were

received and analysed to assess the satisfaction level. The key learnings noted are as

under:

a) Key learnings

I. It is found that around 82% employees have a strong sense of belonging and

pride in being part of Organisation B.

II. The process of career development plan provided support for multi-skilling,

improved technology, people focus and maintenance systems;

III. The findings from the questionnaire revealed that innovation and creativity

have to be stepped up for better functioning

IV. Working needs to be improved and the compartmentalisation of working

needs to be broken

V. Need for decentralisation and empowerment of employees emerged as one of

the findings

The findings emerged from the study and analysis of functioning of participative fora

in organisation A and organisation B has been elaborated above. We find that

organisation A, which has been the bigger of the two has shown more preparedness

and taken a lot of initiatives for bringing peace and harmony in the organisation,

withseveral progressive activities initiated both from the sides of both IR as well as

HR.Organisation B, on the other hand, took due care of maintaining good industrial

relations. However, the result shows that the number of disputes and cases emerged

were also significant.

Chapter IV would deal with a detailed comparison of the impact of WPM practices

being undertaken in both the organisations.