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A PROJECT REPORT ON

“INDUSTRIAL RELATIONS IN BHEL, HYDERABAD”

Presented in partial fulfillment for the award of the Masters Degree in Business Administration-

IV Trimester

in

BHARAT HEAVY ELECTRICALS LIMITED

HYDERABAD

PREFACE

With immense pleasure and deep sense of sincerity, I

have completed my Industrial training. It is an essential

requirement for each and every student to have some

practical exposure towards real world situations. A

systematized practical experience is provided to inculcate

self confidence in a student so that they can mentally

prepare themselves for this competitive environment.

The purpose of the training is to:

1. Develop intellectual ability of student

2. Bring confidence

3. Develop skills

4. Modify attitudes

TABLE OF CONTENTS

Contents Page No.s

1. Project Background 01

2. Definition Of Industrial Relations 03

3. Evolution Of Industrial Relations 06

4. Characteristics Of Industrial Relations

12

5. Objectives Of Industrial Relations

15

6. Theories And Laws 18

7. BHEL Profile 36

8. Need For The Study 52

9. Methodology 54

10. Findings 58

11. Analysis 68

12. Analysis Of Satisfaction Levels

70

13. Analysis Of Industrial Relations

92

14. Conclusion 98

15. Suggestions 100

16. Limitations 102

17. Annexure 104

a. Questionnaires 105

b. Chi-Square Distribution Table 116

18. Bibliography 117

PROJECT BACKGROUND

The project aims to build awareness of the nature

and importance of good industrial relations; assist Bharat Heavy

Electricals Limited in improving its Industrial Relation (IR)

policies; build sustainable capacity to provide IR training and

technical assistance at the national and unit levels; and improve

knowledge and practice of sound IR approaches in targeted

sectors.

ANALYSIS OF

SATISFACTION LEVELS

WORKMEN

SUPERVISORS

EXECUTIVES

WORKMEN

1. What are the usual problems faced by you?a. Working conditionsb. No guidancec. Benefitsd. Working conditionse. All

It is clearly seen from the pie chart that more than half of the workmen i.e. 55% face no problems while working in BHEL. They are very much satisfied with their working conditions, the guidance which they get from their supervisors, their work timings, the benefits which they are getting etc. But, 25% of the workmen have grievances related to working conditions and 20% of them are not happy with their work timings.

The workmen not happy with their working conditions face problems with the noise levels in the shop floor where they work as well as with the temperature which is usually high and they are not provided with any alternative to overcome this problem.

Some of the workmen who work in the factory area are not happy with their work timings as they need to attend irregular shifts and at times they need to work beyond the regular timings.

2. How do you try to resolve it?a. On your own

b. By consulting your immediate superiorc. With the help of the Uniond. All

As is clear from the pie chart that whenever the workmen come across any problem during their work, most of them try to consult their immediate superior only to solve their problems but there seems to be a few constituting about 10% which directly consults their union leader in order to solve their problems. This is so because they find it more easier and reliable way to meet their grievances.

3. Are you satisfied with the wages you are paid?a. Yesb.No

As we can see from the chart, 80% of the workmen say that they are satisfied with their wages but 20% of the workmen are still not satisfied with their wages and these include those who have a big family and they are not able to meet their needs properly. Moreover with the present situation of rising prices, they expect a hike in their wages to meet their needs.

4. Does it really return the worth you are provided to the organization?a. Yesb. No

Here, we can see the satisfaction levels among the workmen, as 90% of them assert that they are being paid according to their work and not being underpaid. This means that they are being paid in proportion to the service they are providing to the organisation and not being made to work more and pay less.

But 10% of the workmen still feel that are not being paid according to their work and they should be paid more than what they are being paid now. This is because they feel that they are putting more physical labour as compared to the workmen who are getting same wage with a comparative less physical effort.

5. Is your working environment safe?a. Yesb. No

When asked about the safety of the working environment, a noticeable difference was found in the response given by the workers. Around 60% of the workmen say that the working environment of BHEL is very safe.

The remaining 40% of the workmen say that the working environment is unsafe. The 40% of the workmen mostly belong to

the factory areas, security department, building department etc. They feel it to be unsafe as they get exposed to different kinds of toxic gases, metal dusts and smoke and even had to work with heavy machinery, volatile agents, hazardous materials, hand and portable power tools, welding, cutting and brazing tools and electrical tolls.

6. Are you being provided with modern production techniques?

a. Yes

b.No

When asked the workmen whether they are provided with modern production techniques, a demarcating response was seen to be found. Around 45% of the workmen say that they are being provided with modernised equipments and machines but surprisingly more than half of the workmen, constituting around 55% say that they are not being provided with modern production techniques.

This is due to the fact that some of the units were having the modern production techniques but some units were not. The units like Heat Exchangers and Fabrications, Pulverisers etc. do not require modernised machinery whereas the units like Gas turbines, Steam turbines, Grinding etc. essentially require the latest equipment and machinery.

SUPERVISORS

1. What are the usual problems faced by you?a. Work Scheduleb.Benefitsc. Union interference in decision makingd.Working conditionse. Disciplinary actionf. All

As can be seen from the pie chart, varied answers were collected when the supervisors were asked about the usual problems they face while working.

10% of them are not satisfied with their work schedule as sometimes they need to stay beyond the working hours. At times they also need to work in different shifts.

40% of them are not satisfied with the benefits they are getting.

20% of the supervisors face problem with the union interference in the decision-making. Under the pressure of the union, they are unable to implement in time the decisions made by their executives and immediate superiors. After negotiations with the union, after remaking the decisions by the management, they are implemented.

40% of the supervisors are not happy with their working conditions as they have to work in a noisy area with high temperature too. Some of them have to work in very small work areas too. These grievances are of the supervisors who work in the shop floor.

30% of them are not satisfied with the discipline. This is because they sometimes come across a situation when the workmen working under them do not follow what they have been asked by the supervisors and they do not take up the responsibility of the equipment they are given to work with.

2. How do you try to resolve it?

a. On your own

b.By consulting your immediate superior

c. With the help of the Union

d.All

When the supervisors are asked about their approach in resolving the problems, 30% of them say that they try to do it on their own and 70% prefer consulting their superior rather than resolving the problems on their own. Both the set of the employees approach the association as the final alternate to solve the problems.

3. Are you satisfied with your salary?

a. Yes

b. No

As far as salary is concerned, from the survey, it is found that there is an equal division of the satisfaction level among the supervisors.

50% of the supervisors are satisfied with their salary and the rest 50% are not satisfied with it. This is due to their mode of jobs, working conditions, hectic work schedules and pressurised works.

4. Does your salary complement your work content?

a. Yes

b.No

As can be seen from the pie chart, 60% of the supervisors feel that they are being paid according to their work content but 40% of the supervisors feel that they are not being paid according to their work content and that they should be paid more. This shows that satisfaction level among these 40% supervisors regarding their salary is quite low. The supervisors of this set mostly belong to the shop floors where production works take place. Their satisfaction levels are purely based on their work environment, conditions, their mode of job etc.

5. Are you satisfied with your promotional scheme?

a. Yes

b. To some extent

c. No

When the supervisors were enquired about the promotional scheme, 30% were satisfied to some extent but there constituted 70% of them who are not satisfied at all with the present promotional scheme. They had a grievance that they are not

provided enough opportunities to get promoted. Comparing the three categories of employees-workmen, supervisors and executives, the promotions for the supervisors lack the pace.

6. Are you happy with the work timings?a. Yesb.No

Work timings seem to be very much suitable for all the supervisors as 100% of them are satisfied as can be seen from the pie chart.

Shift system is followed in BHEL. Morning shift begins from 6.30a.m. and ends at 3.30p.m. Evening shift begins from 3.30p.m. and continues till 11.30p.m. Each of the supervisors has to work in one shift continuously for a week and then in the other shift for the second week and this continues. Hence the supervisors find it quite convenient to work with.

7. Do you think flexi timings are required?a. Yesb. No

As far as flexi timings are concerned there is a mixed view of the supervisors where 50% of them want flexible work timings and the rest 50% do not think it is required.

They are liable to work for 48 hours a week and so at times of emergency for personal affairs the implementation of flexible timings would allow the needy supervisors to take leave from work with pay and can compensate that work by working extra some other day within the 48 hours of that week.

50% of the supervisors did not appreciate this concept and felt it to be of no use as they are provided with a good leave policy which can be utilized when needed.

EXECUTIVES

1. What are the usual problems faced by you?

a) Work schedule

b) Benefits

c) Union interference in decision making

d) Working conditions

e) Disciplinary action

f) All

As can be seen from the pie chart the usual problems which the executives face while working gives varied answers. 20% of them are not satisfied with their benefits.30% faces problem with union interference.50% are not happy with their working condition.50% are not finding proper discipline as they say that people working under them are not always following the rules.10% executives are there who are not satisfied and have grievances regarding work schedule, benefits they are receiving, union interference in decision making, working condition and discipline.

2. How do you try to resolve them?

a. On your own

b. By consulting your immediate superior

c. With the help of the Union

d. All

When enquired about how these executives try to resolve their work problems, a result came where it was found that 30% of them try to do it on their own and 90% prefer going to their superior for solving their problems and it includes the ones who tries to do it on their own as well.

3. Are you satisfied with your salary?

a. Yes

b. No

As far as satisfaction with salary is concerned, 80% of the executives are satisfied with the salary they get but the rest 20% are still not satisfied with their salary. This 20% of the executives include those who work in the shop floor. They do expect a hike in their salary because of their mode of jobs, working conditions, hectic work schedules and pressurised works.

4. Does your salary complement your work content?

a. Yes

b. No

Surprisingly, it was found that the executives accept that they are being paid according to their work and are not being made to do work more than they are actually paid in spite of the fact that there are a few who still expect a hike in salary.

5. Are you satisfied with your promotional scheme?

a. Yes

b.To some extent

c. No

As far as promotional scheme is concerned, executives show a 100% satisfaction level as they say that they are being promoted according to their work performance majorly which is very much fair and satisfactory for them.

A four-year promotion scheme is followed in BHEL, where for every four years, the executives are promoted from their present cadre to immediate higher cadre.

6. Are you happy with the work timings?

a) Yes

b) No

Work timings also have shown a 100% satisfaction among the executives. They are very much satisfied as the timings are convenient for them. Shift system is followed in BHEL, where the morning shift begins from 6.45 a.m. and ends at 3.30 p.m. and the noon shift starts from 3.30p.m. till 11:30 p.m.

7. Do you think flexi timings are required in BHEL?

a) Yes

b) No

When the executives were asked about the need to implement flexible work timings 80% of them did not feel the need for it but 20% of them wanted it to be implemented.

They are liable to work for 48 hours a week and so at times of emergency for personal affairs the implementation of flexible timings would allow the needy executives to take leave from work with pay and can compensate that work by working extra some other day within the 48 hours of that week.

But 80% of the executives did not appreciate this concept and felt it to be of no use as they are provided with a good leave policy which can be utilized when needed.