mu0003 assignment 2010 december

8/8/2019 MU0003 Assignment 2010 December

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Q.1 In the era of globalization, existence of a trade unionis being challenged. What are the challenges being facedby the trade unions?

Ans.Challenges to Trade Unionism in Liberalized India :-

The equation between labour and management has altered dramatically postliberalization era. Strikes have declined steadily, especially after 19 Instead of yielding to the pressure tactics employed by trade union managements preferred todraw the shutters down. Unions are now fighting for 'their survival. The militancy,which was almost synonymous with lab unions in the past, has, by and large,declined. The entry of multinational companies has compelled virtually every localcompany to focus more quality, customer service, and cost cutting. Under thecircumstances Unions are facing the following challenges:

1. Militancy does not pay: The employer will draw the shutters down if pushed tothe wall. The tactics like sloganeering has therefore, is to replaced by a pragmaticapproach like face-to-face meetings, wage freeze VRS schemes, selling millproperties etc., instead of strikes and lockouts.

2. Political base and Public Support Disappearing: The fiercely competitivescenario has made the political bosses realize the importance keeping a low profileand distancing themselves from economic activities Without political patronage andfinancial support from 'upstairs', unions finding it difficult to keep their spirits high

and fight out the issues management till the end. With the opening up of theeconomy, government has acquired a greater degree of intolerance towardsmilitant and strong-arm tactics by the unions. This is especially true of the Stategovernments who now have to fiercely compete for investments. Even pro-labourStates such as Kerala and West Bengal, labour militancy is encouraged. Over theyears, labour as a constituency has shrunk in s· and its importance to politicians hasdiminished considerably.

3. Vanishing of Jobs: Liberalization, which promised six million jobs every year,has ended up as a job-destroyer. Companies have their own compelling reasons toundertake cost-cutting measures. To compete globally, they have to raise labour

productivity, modernize operations and give undiluted attention to quality. Withencouraging signals from government (supporting VRS, modernization efforts, pro-employer moves favouring drastic labour reforms), the employers have been givingpink slips to people who have failed to keep pace with the time. Union leaders andlabour activists point out that many companies, mostly small ones, have simplyclosed down without permission from the Government.



4. Shrinking Membership: Membership of unions has been declining over theyears. These shrinking numbers have reduced the popularity and influence of unions in the present scenario. Given the harsh realities they are up against,leading national trade unions avoid confrontation with establishment and ratherprefer integration and cooperation instead.

Q.2 Explain briefly, various steps involved in a disciplinaryprocedure.

Ans. Disciplinary Procedure

The disciplinary procedure involves the following steps:

a) Preliminary Investigation: First of all, a preliminary inquiry should be held tofind out whether a prime facie case of misconduct exists.

b) Issue of a charge-sheet: Once the prima facie case of misconduct isestablished, charge sheet is issued to the employee. Charge sheet is merely anotice of the charge and provides the employee an opportunity to explain hisconduct. Therefore, charge sheet is generally known as a show cause notice.

In the charge sheet, each charge should be clearly specified. There should be aseparate charge for each allegation and charge should not relate to any matterwhich has already been decided upon. The charges so framed should becommunicated to the individual along with the statement of allegations on whichthe charges are based.



c) Suspension Pending Enquiry: Depending on the gravity of charges, anemployee may be suspended along with serving him the charge sheet. The variouscircumstances which may warrant suspension of an individual are:

i) When disciplinary proceeding is pending or contemplated.

ii) When engaged in the activities prejudicial to the interest or security of the state.

iii) Where a case in respect of any criminal offence is under investigation, inquiry ortrial.

iv) Where continuance in office will prejudice investigation/ inquiry/trial.

v) When the presence of the employee in office is likely to affect discipline.

vi) When his continuous presence in office is against the wider public interest.

vii) Where a prima face case has been established as a result of criminal ordepartmental proceedings leading to the conviction, revival, dismissal, etc.

viii) In case of the following acts of misconduct:

• Moral Turpitude• Corruption, embezzlement • Serious negligence in duty resulting in loss• Desertion of duty • Refusal or failure to carry out written orders

According to the Industrial Employment (Standing Orders) Act, 1946, the suspended

worker is to be paid subsistence allowance equal to one-half of his wages for thefirst ninety days of suspension and three-fourths of the wages for the remainingperiod of suspensions, if the delay in the completion of disciplinary proceedings isnot due to the worker’s own conduct.

a) Notice of Enquiry: In case the worker admits the charge, in his reply to thecharge sheet, without any qualification, the employer can go ahead in awardingpunishment without further inquiry. But if the worker does not admit the charge andthe charge merits major penalty, the employer must hold an enquiry to investigateinto the charges. Proper and sufficient advance notice should be given to theemployee indicating the date, time and venue of the enquiry so that the workermay prepare his case.

b) Conduct of Enquiry: The enquiry should be conducted by an impartial andresponsible officer. He should proceed in a proper manner and examine witnesses.Fair opportunity should be given to the worker to cross-examine the managementwitnesses.



c) Recording the Findings: On the conclusion of the enquiry, the enquiry officermust record his findings and the reasons thereof. As far as possible, he shouldrefrain from recommending punishment and leave it to the decision of theappropriate authority.

d) Awarding Punishment: The management should decide the punishmentpurely on the basis of findings of the enquiry, past record of the worker and gravityof the misconduct.

e) Communicating Punishment: The punishment awarded to the worker shouldbe communicated to him in written and the earliest available opportunity. The letterof communication should contain referenceto the charge sheet, the enquiry and the findings. The date from which the

punishment is to be effective should also be mentioned.

Q.3 Mr.Sanjay is the General Manager of Dream SunshinePharmaceutical Company. He has to diversify his business.He wants to assess the leadership style of some of hisSenior managers.Manager 1- (Has a high consideration for people and Low forstructure)Manager 2 – (Has a high consideration for people and also high forstructure)

Manager 3 – (Has a low consideration for people and high forstructure)Manager 4 – (Has a low consideration for people and low forstructure)Refer to the Grid approach and help Mr. Sanjay to clearlyunderstand the leadership styles for all the managers. Which style

is best according to you? Explain.

Ans. Grid Approach of Leadership (Blake – Mouton) The grid approach to leadership has been developed by R.R. Blake and J.S. Mouton.It was primarily developed for assessing the personality of a leader in terms of his

concern for task and concern for people, and later, attempting behaviouralmodification in him through Managerial Grid training program. Since each axis of the grid has 9 steps, a leader’s performance can be plotted anywhere on 81 smallboxes of grid by obtaining his score with the help of a questionnaire. However, forthe purposes of studying the styles of leadership the grid can be divided into fivemain areas. These are shown in Figure Below:



Figure: Grid Approach of Leadershipi) Location 9, 1 Style (Task)

This style represents the task or mission oriented leader. He cares little about thefeelings of his group members. He believes in close supervision and provesimpatient about the slackness, delay or failure on the part of group members. Thistype of behaviour of leader is suited for handling certain types of emergencyconditions.

ii) Location 9, 9 Style (Team) This type of leader tries to integrate both mission accomplishment and welfare of men. He helps the development of those members of his group who are committed

to the achievement of organizational goals. Such members, with their stake in theorganization’s purpose, co-operate with each other and work in an interdependentmanner. They trust and respect each other and that helps them in creating acongenial work environment. This makes the task of the leader easy. He works withconviction that ‘people support what they help to create’.

iii) Location 1, 9 Style (Country Club) The leader belonging to this quadrant of the grid is also called the club manager. The welfare of people is his sole aim. He is likely to fail in achieving organization’stime bound objectives. Since his heart is full of compassion and he cannot see



people suffering. He lives with the idea that ‘a happy team produces the bestresults’.

iv) Location 1, 1 Style (Impoverished) This is the non-involved type of leader. He neither causes any event nor directs anyevent taking place on its own. He considers that mission accomplishment andwelfare of people are conflicting goals. The best results are achieved if theprocedures established in the past are allowed to continue. An organization headed

by such a leader can consider itself lucky if it could just maintain the standards of efficiency achieved under an earlier dynamic leader.

v) 5, 5 Style (Middle Road) This is the leader who follows ‘middle-of-the-road’ policy. He thinks that by being‘firm but fair’ he can achieve the best results. He is a compromiser. He strives toachieve results without unduly upsetting the people. Such a leader is best suited toplay the role of a conciliator in the labor management conflicts.



Q.1 What are the various factors that can influencestrategic employee relations management?

Ans. Any organization, in order to attain its goals successfully, must always

endeavour to develop and maintain healthy employee relations. The framework forsuch relations must be based on the following:

a) Integration: The needs of individuals, groups and the organization must beseamlessly integrated. Such cross-matching of interests will invariably result in ahealthy organizational climate and promote creativity and productivity. It is amanagement responsibility to initiate measures to create an atmosphere of mutualtrust and understanding so that the employees appreciate both organizational and

environmental constraints and support the company at all times.

b) Employee Participation: Supportive climate and mutual trust and confidencecan be created by involving workers and their groups in the decision-makingprocess. Management should be open to ideas and accept or reject an idea orsuggestion based on its merits and not on the source of the idea or suggestion. Themanagement must appreciate the problem of the employees and strive to resolvethese at the earliest. Communication channels must be kept open and theemployee must be given an opportunity to be heard. Such involvement not onlyimproves the quality of decisions but also leads to the satisfaction of ego needs of

employees. They feel recognized and their attitude is always positive. Jointmanagement councils or committees consisting of equal representative of workersand management may be constituted. Frank and fair discussions/meetings help tosecure and preserve unity among workers and managers. Effective use of groupdynamics is a must.

c) Congenial Work Environment: Management must create a work environmentwherein workers can perform their jobs with a sense of security and camaraderie.

They must value the task they are performing. Simultaneously, the management



must ensure job security, a meaningful and challenging job, scope for opportunityand advancement and satisfying interpersonal relationships for the employees.

d) Communication: Most of the employee relations problems arise due to lack of communication or inadequate or a distorted communication. The desire to haveknowledge about the current situation, future prospects, company policies andcontemplated changes is one of the basic needs of an employee. Lack of communication leads to fear, misunderstanding and distrust. Therefore,management should maintain open channels of communication, particularly upwardcommunication. Employee handbooks, grievance procedures, suggestion schemes,etc. enable management to understand the feelings, fears and aspirations of employees. Informal communication or grapevine is generally used to supplementand support the formal channels of communications. However, strict vigil onrumours must be kept with all efforts to arrest them at the earliest.

e) Adaptive Leadership: Leadership style must be determined by the situationand must be flexible. An effective leader is one who fully understands his

employees and adapts his approach to the requirements of the situation. In order todevelop healthy relations, managers should listen carefully, talk less and givedecision in the opportune time. Decision delayed is harmful to the organization as itleads to mistrust. Managers must uphold the dignity of the individual employeesand must have a positive attitude. Orders must be clear and unambiguous.

f) Resolving Conflicts: Continuous efforts must be made to reduce and minimizeinter-personal and inter-group conflicts. The genesis of the conflict must beidentified and the solution must be such that it satisfies the interest of both partiesalbeit not fully. Healthy employee relations can be developed through an integrativeand problem-solv1ng approach in which both the parties gain satisfaction of theirneeds in a cooperative manner and not at the expense of one another. Such a

situation requires impartial, continuous and positive communication with the partiesconcerned.

g) Conditioning Behaviour: Conditioning the behaviour of people is one of theeffective ways of building healthy employee relations at work. This involves the useof positive and negative reinforcements. Rewards must be used to reinforcedesirable behaviour while punishment must be used to discourage undesirablebehaviour. The most important aspect being that the managers must themselveshave exemplary conduct.

h) Personnel Counseling: An ideal manager must have big ears to listen to all theproblems, a pair of big eyes to observe things, a big head to analyze and arrive atan effective solution, a big tummy to keep things confidential and a small mouth tospeak less. Thus a manager must listen patiently and help expeditiously resolve theproblems faced by workers both inside and outside the organization. Counselingreduces the build up of tension and improves their self-confidence. The employeefeels at home in the four walls of the factory or office.



(i) In the case of a male employee, himself, his wife, his children, whethermarried or unmarried, his dependent parents and the dependent parents of his wifeand the widow] and children of his predeceased son, if any,

(ii) In the case of a female employee, herself, her husband, her children,

whether married or unmarried, her dependent parents and the dependent parentsof her husband and the widow and children of her predeceased son, if any.

(f) Retirement means termination of the service of an employee otherwise. an onsuperannuation. Superannuation, in relation to an employee, means the attainmentby the employee of such age as is fixed in the contract or conditions of service asthe age on the attainment of which the employee shall vacate the employment.

(g) Wages means all emoluments which are earned by an employee while on dutyor on leave in accordance with the terms and conditions of his employment andwhich are paid or are payable to him in cash and eludes dearness allowance butdoes not include any bonus, mission, house rent allowance, overtime wages andany other allowance.

(h) Continuous Service: For the purposes of this Act means: -

(i) An employee shall be said to be in continuous service for a period if hehas, for that period, been in uninterrupted service, including service which may beinterrupted on account of sickness, accident, leave, absence from duty without

leave (not being absence in respect of which an order treating the absence as breakin service has been passed in accordance with the standing orders, rules orregulations governing the employees of the establishment), lay-off, strike or a lock-out or cessation of work not due to any fault of the employee, whether suchuninterrupted or interrupted service was rendered before or after thecommencement of this Act.

(ii) Where an employee (not being an employee employed in a seasonalestablishment) is not in continuous service within the meaning of clause (1), for anyperiod of one year or six months, he shall be deemed to be in continuous serviceunder the employer: -

• For the said period of one year, if the employee during the period of twelvecalendar months preceding the date with reference to which calculation is to bemade, has actually worked under the employer for not less than one hundred andninety days, in the case of an employee employed below the ground in a mine or inan establishment which works for less than six days in a week; aQd two hundredand forty days, in any other case.



• For the said period of six months, if the employee during the period of sixcalendar months preceding the date with reference to which the calculation is to bemade, has actually worked under the employer for not less than ninety-five days, inthe case of an employee employed below the ground in a mine or in anestablishment which works for less than six days in a week; and one hundred andtwenty days, in any other case.

(i) Controlling Authority: The appropriate Government may, by notification,appoint any officer to be a controlling authority, who shall be responsible for theadministration of this Act and different Controlling authorities may be appointed fordifferent areas.

Applicability

Every factory, mine, oil field, plantation, port, railways, company, shop,

establishment or educational institutions employing 10 or more employees.Sec-1

Calculation Piece-rated Employee

@ 15 days wages for every completed year on an average of 3 months' wages.Sec-1

Calculation Seasonal Employee

@ 7 days' wages for every completed year of service.Sec-1

Employee

All employees irrespective of status or salary.

Entitlement

On completion of five years' service except in case of death or disablement.Sec 2e

Qualifying Period

On rendering of 5 years' service, termination, resignation or retirement.Sec 2e

Wages for Calculation



@ 15 days' wages for every completed year as if the month comprises of 26 days atthe last drawn wages.

Sec 2(s)

Display of Notice

On conspicuous place at the main entrance in English language or the languageunderstood by majority of employees of the factory, etc.

Rule 4

Maximum Ceiling

RS. 3, 50,000.Sec 4(3)

Forfeiture of Gratuity

• On termination of an employee for moral turpitude or riotous or disorderlybehavior.

• Wholly or partially for willfully causing loss, destruction of property etc.Sec4 (6)

Nomination

To be obtained by employer after expiry of one year's service, in Form 'F'.Sec 6 Rule 6

Recovery of Gratuity

To apply within 30 days in Form I when not paid within 30 days.Sec 8 Rule 8

Protection of Gratuity

Can't be attached in execution of any decree rule 13.

Penalties

• Imprisonment for 6 months or fine up to RS.10, 000 for avoiding makingpayment by making false statement or representation.



• Imprisonment for not less than 3 months and up to one year with fine ondefault in complying with the provisions of Act of Rules.

Q.3 TechPro is a company dealing with the manufacturingof UPS. It has more than 25 employees. The company wasestablished 4 years ago. The company owner wants tokeep in place all the legal implications. Will theorganization be covered in the Factories Act? What allprovisions need to be taken care of to abide by theregulations?

Ans. Important Statutory Provisions in the Factories Act, 1948

1. Cleanliness(a) Every factory shall be kept clean and free from effluvia arising from any drain,privy or other nuisance.(b) Accumulation of dirt and refuse shall be removed daily by some effectivemethod,(c) The floor of every work room shall be cleaned at least once in every week bywashing, using disinfectant where necessary, or by some effective method,(d) Where a floor is likely to become wet in course of any manufacturing process tosuch an extent as is capable of being drained, effective means of drainage shall beprovided,(e) Walls, partitions, ceilings, doors, windows. etc. shall be painted, varnished, whitecolour washed in the prescribed manner.

2. Disposal of Wastes and Effluentsa) Effective arrangements shall be made in every factory for the treatment of wastes and effluents due to manufacturing process carried on therein, so as torender them innocuous and for their disposal.

3. Ventilation and Temperature(a) Effective and suitable provision shall be made in every factory for securing andmaintaining in every workroom the circulation of fresh air and such a temperatureas will secure to workers therein reasonable conditions of comfort and preventinjury to health,(b) The walls and roofs shall not be exceeded but kept as low as practicable,(c) The process which produces high temperatures shall be separated from the

workroom by insulating the hot parts or by other effective means.

4. Dust and Fumes(a) Where dust or fumes or impurity of such a nature as is likely to be injurious oroffensive to the workers is given off as a result of the manufacturing process beingcarried on in a factory, effective measures shall be taken in the factory forprevention of inhalation or accumulation of dust and fumes in workrooms. If for sucha purpose any exhaust appliance is necessary it shall be applied as near as possibleto the point of origin of the dust, fumes or other impurity and such point shall beenclosed so far as possible,



(b) A stationary internal combustion engine shall not be operated unless theexhaust is conducted into the open air. Other internal combustion engines shall notbe operated in any room unless effective measures have been taken to preventaccumulation of fumes there from which are injurious.

5. Artificial HumidificationIn any factory in which the humidity of the air is artificially increased, the waterused for the purpose shall be taken from a public supply or other source of drinking

water or shall be effectively purified before it is so used.

6. Over-crowding There shall be in every work-room of a factory at least 9.9 cubic metres (for thefactories existing before this Act) and 14.2 cubic metres for factories built after thisAct) and 14.2 cubic metres (for factories built after this Act) of space for everyworker. In calculating such space, no account shall be taken of any space which ismore than 4.2 metres above the level of the room’s floor.

7. Lightinga) In every part of the factory where workers are working orpassing there shall be provided and maintained sufficient and suitable lighting,

natural or artificial or both,b) All glazed windows and sky lights used for lighting shall be kept clean and freefrom obstruction,c) Effective provision shall be made to prevent glaze and the formation of shadows.

8. Drinking Water(a) In every factory, effective arrangements shall be made to provide andmaintain at suitable points conveniently situated for all workers employed therein asufficient supply of wholesome drinking water,(b) All such points shall be legibly marked ‘drinking water’ in a languageunderstood by a majority of the workers employed in the factory. No such pointsshall be situated within six metres of any washing place, urinal, latrine, spittoon,open drain carrying effluent or any other sources of contamination unless a shorterdistance is approved in writing by the Chief Inspector,(c) In every factory wherein more than 250 workers are ordinarily employed,provision shall be made for cooling drinking water during hot weather by effectivemeans and for distribution thereof.

9. Latrines and Urinals(a) In every factory:(i) Sufficient latrine and urinal accommodation of prescribed types shall beprovided conveniently situated and accessible to workers at the time while they areat the factory;(ii) Separate enclosed accommodation shall be provided for male and femaleworkers;(iii) Such accommodation shall be adequately lighted and ventilated and no latrineor urinal shall unless specially exempted in writing by the Chief Inspector,communicate with any work-room except through an intervening open space orventilated passage;(iv) All such accommodations shall be maintained in a clean and sanitary conditionat all times;(v) Sweepers shall be employed whose primary duty would be to keep cleanlatrines, urinals and washing places.



(b) In every factory wherein more than two hundred and fifty workers areordinarily employed:(i) All latrine and urinal accommodation shall be of prescribed sanitary types;(ii) The floors and internal walks, up to a height of 90 centimeters, of the latrinesand urinals and the sanitary block shall be laid in glazed tiles or otherwise finishedto provide a smooth polished impervious surface;(iii) The floors, portions of the walls or blocks so laid or finished and the sanitarypans of latrines and urinals shall be thoroughly washed and cleaned at least once in

every seven days with suitable detergents or disinfectants or with both.

10. Spittoons(a) In every factory, there shall be provided a sufficient number spittoons atconvenient places and they shall be maintained in a clean and hygienic condition.(b )No person shall spit within the premises of a factory except in the spittoonsprovided for the purpose. A notice containing the provision of spittoons in thefactory and the penalty for spitting any where except in the spittoons shall beprominently displayed at suitable places in the premises.

mu0003 assignment 2010 december

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