Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
DEFINATION OF PARTICIPATIVE MANAGEMENT:-
According to KEITH DAVIS :-“Participation refers to the mental and emotional involvement of a
person in a group situation which encourages him to contribute to group goals and share in the
responsibility of achieving them.”
When subordinates are involved in decision making at all levels the resultant concept is participative
management.
There are 3 groups of managerial decisions that have a direct impact on employee behaviour. They are
social, economic and personnel decisions.
Economic decisions include financial aspects- the methods of manufacturing, shut down, lay offs,
mergers and other similar functions.
Personnel decisions refer to employee hiring, promotions, demotions, transfers, job design and the
like.
Social decisions relate to hours of work, welfare measures, safety and health.
Participation by employees is effected through several methods like:1.
2.
3.
4.
5.
6.
7.
Participation at the board level.
Participation through share ownership.
Participation through joint councils, committees and work councils.
Participation through collective bargaining.
Participation through job enlargement and job enrichment.
Participation through quality circles.
Participation through empowered teams.
The main benefit of participative management is that employees is that the employee identifies
himself/herself with the job and organization and this leads to improve motivation and enhanced task
performance. Participation leads to reduced conflict and stress, more commitment to goals, better
acceptance of change and improved communication.
Prof. Tahereem Bardi
1
Human Resource Management (UNIT – IV)
Prof. Tahereem Bardi
TYBMS (SEM - V)
2
Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
LEVELS OF PARTICIPATION:Under participative management, workers are associated with the management i.e. decision
making process at different levels. The nature of association and the coverage of decisions are
different at different levels. Such participation in through the representatives of workers. Normally,
the levels of participation are three. These are as noted below:
(A) PARTICIPATION AT THE SHOP FLOOR LEVEL
(B) PARTICIPTION AT THE PLANT LEVEL.
(C) PARTICIPTION AT CORPORATE LEVEL/ENTERPRISE LEVEL
(A)PARTICIPATION AT THE SHOP FLOOR LEVEL:Actual production activity is conducted by workers at the shop floor. Here, participative
management is possible through works committees in which workers elect their representatives. In
such matters committee meetings relating to day to day working/functioning at the shop floor level
are discussed and joint decisions are taken.
Such committees are concerned with following matters:
1. Conditions of work (lightning, ventilation, sanitation etc) and amenities such as drinking
water, canteens, medical and health services etc.
2. safety and accident prevention
3. adjustment of festival and national holidays
4. administration of welfare fund, educational and recreational activities
5. promotion of thrift and savings, and
6. Review of decisions arrived in the meetings of works committees.
Regular meetings of works committees enable workers to get their day to day problems solved
promptly. For this, meetings of committees should be arranged regularly and constructive decisions
should be taken. In India, such committees are not functioning properly at the shop floor level.
(B)PARTICIPATION AT THE PLANT LEVEL:JOINT MANAGEMENT COUNCILS (JMCs) function as consultative agency at the plant level. JMCs are
concerned with the activities at the plant level. JMC, equal representation is given to management
and workers. The maximum membership of JMC is 12. JMC is necessary where five hundred or
more workers are employed. JMC performs functions on the following matters:
Prof. Tahereem Bardi
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Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
1. to deal with matters such as accident prevention at plant level, management of canteens,
water, meals, issue and revision of work rules, indiscipline, training, absenteeism and so on.
2. To receive information, to discuss and to give suggestions on production and marketing
programmes, methods of production, general economic situation, state of the market and
so on.
3. To have consultations with JMC before introducing changes in the modes of production,
production schedule, general administration problems and so on. Wages, bonus, individual
grievances of workers, personal problems of workers ad matters of collective bargaining are
outside the scope of JMCs. The performance of JMCs is not satisfactory in INDIA due to the
attitude of workers’ representatives, trade unions leadership and negative attitude of
managers.
In 1975, another scheme of participative management was introduced in India. Under this new
scheme, at the shop floor levels, SHOP COUNCILS were to be set up and at the plant level, JOINT
COUNCILS were to be set up. In 1977, the scheme was extended to public sector units employing
100 or more persons.
(C)PARTICIPATION AT THE CORPORATE LEVEL:This is participative management at the highest level. Here, the board of directors is the apex body
in the administration and decision making at the corporate level. The representatives of workers
are taken on the board of directors. He looks after the protection of interest of workers. This also
improves employer-employee relations and ensures higher productivity. The workers’
representative can play a useful role in safeguarding the interest of workers. He can guide the
management on personnel and social functions. He can even suggest the management not to take
certain policy decisions and measures that would be unpopular with the employees.
Representatives of workers can also suggest to the board, certain schemes which will motivate
workers to take more interest in the work and will also prove useful for cordial labor management
relations over a longer period.
Participation through workers representative on the Board of Directors is, now introduced in many
public sectors enterprises and banks. Participative management at the corporate level is not effective
in India. This is because for various reasons. The Board, FOR EXAMPLE, deals with variety of subjects
and personnel matters does not receive much attention at the board level. The workers
representatives on the board are in minority whereas decisions taken in the board are by the majority.
The representative of workers on the board have many limitations due to educational background, etc.
such director may not be able to play a constructive role
Prof. Tahereem Bardi
4
Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
Forms of PARTICIPATION:
There are 3 groups which impacts on workers; namely social, personnel and economic decisions. But
there is a difference of opinion about the scope and the extent to which workers can participate in
social, personnel and economic decisions.
In practice, however participation of workers is affected by any or all the methods described below:
Participation at Board Level: the Board of Directors is an apex body in the administration of a
corporate establishment. The workers’ representative on a Board can play a useful role in safeguarding
in the interest of workers. They can serve as a control element and can prevail the top management
not to take measures which are unpopular with employees and employee benefit scheme. But the
participation of workers at the top-level management is not without its problem. The Board of any
enterprise is primarily concerned with such problems as raising funds, utilization of the resources of
the company to its advantage, ensuring the capital growth of the enterprise.
Participation through Ownership: Workers may become involved in the industry by making
them shareholders of the company. This may be done by introducing them to buy equity shares. They
may also promote the scheme by allowing the workers to make payments in installments. Advance
loan or even financial assistance to such workers to enable them to buy equity shares, is possible.
Participation through ownership has a distinct advantage of making the worker committed to the job
and to the organization.
Participation through Complete Control: Workers acquire complete control of the
management through elected boards. Self-management gives complete control to the workers to
manage directly all aspects of industries through their representatives. Industrial disputes disappear
when workers develop loyalty to the organization. Trade unions welcome this kind of participation.
Participation through Staff or Works Councils: Staff councils or work councils are bodies
on which the representation is entirely of the employees. There may be one council for entire
organization or a hierarchy of work councils. The councils have different functions in the management
of an enterprise. They are right step in the direction of industrial democracy. But they are not
Prof. Tahereem Bardi
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Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
successful because of the fear expressed by trade union leaders that, being mainly workers’ bodies;
staff councils may erode their power and prestige.
Participation through Joint Councils & Committees: Joint councils are body’s
representatives of employees and employers. The functions of these bodies may range from the
decision making on some issues to merely advising the management as consultative bodies. These
councils provide no useful purpose. They only provide a platform to employees and employers from
which they may give free vent to their complaints and grievances without making any attempt to find
remedies and solutions.
Participation through Collective Bargaining: The principle of collective bargaining confers
on the management and the workers the right, through collective agreements to lay down certain rules
for the formulation and termination of the contract of the employment, as well as the conditions of
service in an establishment. Collective bargaining can really work well if the bargaining parties, namely,
the employers and workers’ representatives, make use of the opportunity for bargaining in the right
spirit and for the positive purpose.
Participation through Job Enlargement and Job Enrichment: Job enlargement
means expanding the job content – adding task elements horizontally. Job Enrichment means that
additional motivators are added to the job so that it’s more rewarding. The purpose is to relieve
employees from boredom which in turn creates achieving job satisfaction.
Participation through Suggestion Scheme: Employees’ views on such matters such as
machine utilization, waste management, energy conservation and safety measures are invited and
reward is given for the best suggestion. This procedure enables the management to arouse and
maintain the employee’s interest in the problems of their concern. Toyota and Satyam are examples
that are benefited from the suggestion scheme
Prof. Tahereem Bardi
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Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
Participation through Quality Circles: Quality Circle spread all over the world in early
1960’s. in our country too, they are being introduced in several companies. BHEL, Alfa Laval, Mahindra
and Godrej & Boyce are practicing QC. Here, employees are involved in the decision making. Most QCs
begin with a great deal of training in identifying work problems, applying statistics to track and
evaluate quality and work together in a group.
Empowered Teams: Empowering refers to passing on the authority and responsibility.
Empowerment occurs when power goes to employees who then experience a sense of ownership and
control over their jobs. Empowered individuals know that their jobs belong to them.
PARTICIPATIVE MANAGEMENT through:
Participation through Quality Circles:
A quality circle (QC) consists of seven to ten people from the same work area who meet regularly to
define, analyse, and solve quality and related problems in their area. Membership is strictly voluntary,
and meetings are usually held once a week, for an hour. During the groups initial meetings, members
are trained in problem- solving techniques borrowed from group dynamics, industrial engineering and
quality control.
Quality circles are credited with producing quick, concrete and impressive results when correctly
implemented. Their advantages include the following:
-
Employees are involved in decision making. This privilege makes them acquire communication and
analytical skills and improve the efficiency at the workplace.
-
Savings-to-costs ratios generally are higher than those achieved with other productivityimprovement programmes.
-
Because the programme is voluntary, employees and unions generally do not view them as another
cost- control effort.
-
Circle members enhance their chances of promotion to supervisory positions.
Prof. Tahereem Bardi
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Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
Started first in Japan in the early 60’s QC’s have spread all over the world. BHEL and BEL are the only two names
which come to one’s memory.
Experience in Indian industries has been a mixed one. With Mahindra Jeeps Division (76 QC’s), the result has
been favorable. Technical problems that had plagued the process since its inception were eight months after the
first circle was formed. To several workers accustomed to thinking of work as a mindless routine, what happens
on the shop floor is a welcome relief. They feel confident of themselves and gain satisfaction that they are being
recognized.
On the flip side, it may be stated that unions have viewed QC’s as means of extracting labour. Qc’s give added
power to the individual worker, not the union.
PHASES IN THE LIFE OF A QUALITY CIRCLE PROGARMME:
PHASE
ACTIVITY
DESTRUCTIVE FORCES
1) Start- up
Publicise, obtain funds and
volunteers, train
2) Initial problem solving
Identify and solve problems
Low volunteer rate, inadequate
funding, inability to learn group
procrss and problem solving skills
Disagreement on problems
3) Presentation and
approval of initial
suggestions
Present and have initial
suggestion accepted
4) Implementation of
solutions
5) Expansion and continued
problem solving
Relevant groups act on
suggestions
Form new groups, old groups
continue
6) Decline
Fewer groups meet
Resistant by staff groups and
middle management, pooe
presentation and suggestion s pf
limited knowledge
Prohibitive, resistant by groups
that must implement
Raised aspirations, lack of
problems, expense of parallel
organization, savings not realized,
rewards wanted
Cynicism about progeamme
Burnout
This table shows the phase in the life of a QC and the problems encountered at each stage. Most QC’s have a
definite life cycle, lasting from one to three years. Few circles operate beyond this time, either because they run
out of steam or face simple problems. However, QC’s can be an excellent bridge between participative and nonparticipative management approaches.
Prof. Tahereem Bardi
8
Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
EMPOWERED TEAMS:
Empowering refers to passing on authority and responsibility. Empowerment occurs when powers goes
to employees who then experience a sense of ownership and control over their jobs.
Empowered individuals know that their jobs belong to them. Given a say on how things are done,
employees feel more responsible. When they feel responsible, they show more initiative in their work,
get more done, and enjoy their work more.
Empowerment is facilitated by a combination of factors, including values, leadership actions, job
structure, and reward systems.
Self- directed teams (another name for empowered teams) have the following distinct features:
1) They are empowered to share various management and leadership functions.
2) They plan, control and improve their own work processes.
3) They set their own goals and inspect their own work.
4) They often create their own schedules and review their performance as a group.
5) They may prepare their own budgets and co- ordinate their work with other departments.
6) They usually order materials, keep inventories and deal with suppliers.
7) They are frequently responsible for acquiring any new training they might need.
8) They may hire their own replacement or assume responsibility for disciplining their own
members.
9) They, and not others outside the team, take responsibility for the quality of their products or
services.
Organizational Values/
Leadership Action
Human Resource
Systems (e.g. Rewards,
Training)
Organizational Structural
Job Design
Prof. Tahereem Bardi
Empowerment
Continuous
Improveme
-nt Actions
1) Competitive Qlty
2) Productivity
3) Customer Service
Fig :-Facilitators of Empowered Teams
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Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
Factor Essential Successful Participative management:To make any of the participative methods successful, the following conditions have to be fulfilled:
1. The participants, namely, the management and operatives, must have clearly defined and
completely defined and complementary objectives. And objectives of one party should not
work at cross-purposes with the objectives of the other party
2. There must be a free flow in information and communication between the management and
the workers. In this way, distrust and suspicion are avoided, and role in workers become
responsible and mature when they discuss their demands with the management
3. The representatives of workers must be drawn from the workers themselves. The participation
of outside trade union leaders should be discouraged. This is necessary because the problems
and difficulties of the workers are better understood by the workers themselves than by others.
The workers, therefore can put across their points of views a major role to the management
with confidence
4. Strong and effective trade unionism is necessary for the success of participative management.
Politicization and multiplicity of trade unions defeat the purpose of participation and
managements
5. Worker’s education and training make a significant contribution to the purpose working of
participative management. Trade unions and governments can play a major and meaningful
role in organizing and conducting training programmes .
6. Neither party should feel that its position is threatened by participation. If workers think that
their status will be adversely affected, they will not participate. If managers feel that their
authority is threatened, they will refuse participation or will be on a defensive.
7. Consultative bodies, collective bargaining and suggestion schemes make a mockery of
participative management. To make workers’ participation meaningful and purposeful, workers
should be associated at all levels of decision making.
8. The success of participation depends on a suitable participative structure and a change of
heart on the part of employers and employees, which may take a long time to develop. To
expedite this development, some sort of legislative action is necessary.
9. There could be the danger of a major portion of the resources of the enterprises being diverted
to workers without much consideration for further investments. It may be desirable to reserve
a certain percentage of the resources for reinvestment, either through mutual agreement or
legislation.
Prof. Tahereem Bardi
10
Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
10. The financial cost of participation should not exceed the values, economic and otherwise, that
come from it. Employees cannot spend all their time in participation, to the exclusion of all
other workers
Prof. Tahereem Bardi
11
Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
QUESTIONS ON PARTICIPATIVE MANAGEMENT
1. What do you mean by participative management? Justify its need in the industrial field
2. Explain clearly the different methods of PM. Which one do you consider the most appropriate for Indian
condition?
3. Explain the pre requisite of successful PM
4. Explain the position workers participation in management in India
5. Discuss the significance of the concept of workers participation in management.
6. “The concept of workers participation in management is, in fact , industrial democracy in practice in
India” –Explain
7. “ Workers participation is management is more in theory less in practice in India”- Explain
8. Suggest measures for meaningful participation of workers in the management
9. What is meant by PM? Also state Importance & limitation
10. Review the progress of PM in India
11. “ A worker is a worker & must be treated according” OR
“A worker is a partner in the production process & must be treated with honor & dignity”. Which
statement you consider appropriate in the light of PM concept & why?
12. Short notes:
a. Concept of industrial democracy
b. Methods of PM
c. Any contemporary PM style
d. Latest trend in employee PM
e. Contemporary methods of PM
Prof. Tahereem Bardi
12
Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
DEFINITION AND CONCEPT OF INDUSTRIAL RELATIONS:
Industrial relations can be defined as the relationship between the management and the employees of
an industry. According to Dale Yoder industrial relations is a "whole field of relationship that exists
because of the necessary collaboration of men and women in the employment process of an industry."
The International Labour Organization (ILO) stated that "industrial relations deal with
either the relationships between the state and employers' and workers' organizations
or the relations between the occupational organizations themselves".
V. B. Singh defined industrial relations as "an integral aspect of social relations arising out of
employer-employee interaction in modern industries, which are regulated by the state in varying degrees
in conjunction with organized social forces and influenced by prevailing institutions. This involves a
study of the state, the legal system, workers' and employers' organizations at the institutional level; and
that of patterns of industrial organization (including management), capital structure (including
technology), compensation of the labour force and market forces at the economic level.
According to Encyclopaedia Britannica, "the concept of industrial relations has been extended to denote
the relations of the state with employers, workers and their organizations. The subject, therefore,
includes individual relations and joint consultation between employers and work people at their work
place; collective relations between employers and their organizations and trade unions and the pan
played by the state in regulating these relations."
From the various definitions given above, we understand that
 Industrial relations are an outcome of employer-employee relationship in an
organization.
 Industrial relations facilitate harmonious relationships in an organization by setting a framework
for the management and the employees.
 Industrial relations is based on mutual compromise and adjustment, for the benefit of both the
parties involved.
 The state and legal system also have a role to play in the maintenance of a conflict-free industrial
environment.
 The different parties in the system with well-defined role are the management, the employee and
the unions.
IMPORTANCE OF PEACEFUL IR
 IR is key for increased productivity in industrial establishments. For example, at the Alwar plant
of Eicher Tractor, productivity went up from 32 percent between 1994 and 1996 to 38 percent in
1997. This increase was possible because of peaceful IR.
 On the flip side are the painful stories of firm that became history because of labour militancy.
Prof. Tahereem Bardi
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Human Resource Management (UNIT – IV)




TYBMS (SEM - V)
B&C Mills, Tamil Nadu, once a household name in the country was wound up, also several
textile mills at Davanagere in Karnataka. Reason---militancy of labour. Vijay Mallya had to sell
Best & Crompton unable to carry on in the wake of intransigence on the part of labour. The
company, which had undergone a total revamp under a new owner from Indonesia, is just a
shadow of its past.
IR has moral dimensions, too. It is unethical on the part of any management to take advantage of
the helplessness of the workers and exploit them. Unemployment compels workers --particularly illiterate and unskilled---to accept jobs, inhuman working conditions and niggardly
wages, notwithstanding.
IR assumes relevance in this context. One of its objectives is to protect workers’ interests and to
improve their economic conditions.
IR seeks to protect the rights of managers too. Managers expect workers to observe codes of
discipline, not to join illegal strikes, not to indulge in damage to company’s property, not to
assault supervisors or peers, and not to come inebriated to the workplace.
Where a workers behavior deviates from expected lines, it is the management’s prerogative to
There is a set procedure for handling any act of indiscipline or indiscretion on the part of an employee
and if the management satisfies the procedure, it is justified in taking action or even removing the
employee from service.
The field of IR needs a new look, a look which is free from suspicion, prejudice and ill will towards
workers.
Prof. Tahereem Bardi
14
Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
TRADE UNIONS:
Definition of Trade Union:Trade Unions are voluntary organizations of workers or employers formed to promote or protect their
interests through collective action. The Trade Unions Act , 1926 defines a trade union as a combination,
whether temporary or permanent, formed
1. primarily for the purpose of regulating the relation between
a. workmen and employers or
b. between workmen and workmen, or
c. between employers and employers, or
2. for imposing restrictive conditions on the conduct of any trade or business, and includes any
federation of two of more trade unions.
An analysis of above definition reveals that a trade union must be:
1.
2.
3.
4.
A combination of workers or employers,
Such as combination could be permanent or temporary
Could include federation of two or more unions, and
To regulate relations among workmen, between workmen and employers or among employers
themselves.
Features of Trade Unions:1. It is an association either of employers or employees or of independent workers. They may
consist of :o
Employers’ association (eg., Employer’s Federation of India, Indian paper mill
association, etc.)
o
General labor unions
o
Friendly societies
o
Unions of intellectual labor (eg, All India Teachers Association)
2. It is formed on a continuous basis. It is a permanent body and not a casual or temporary one.
They persist throughout the year.
Prof. Tahereem Bardi
15
Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
3. Trade unions are voluntary association of workers in one or more occupations. Seven or more
workers can form a trade union. A worker can join or leave any trade union as per his desire.
However, it is relatively permanent combination of workers and is not a temporary or casual
combination. It has to be a long term combination of achieving its objectives. Membership is
voluntary. Large members of workers are away from any Trade union. Workers leave one union
and join another union. They are also free to join any union as per their choice.
4. It is formed to protect and promote all kinds of interests –economic, political and social-of its
members. The dominant interest with which a union is concerned is, however, economic. A
union cover all aspects of life of its members but it is mainly for protecting economic interests of
members.
5. Trade union are concerned i.e through united actions of members. Community of interest
motivates them to unite and act collectively.
6. It achieves its objectives through collective action and group effort. Negotiations and collective
bargaining are the tools for accomplishing objectives.
7. Trade union functions on democratic principles. Their objective is to protect the interests of
workers and avoid their exploitation in any possible form and by any agency. Trade union have
democratic setup. Office bearers are elected by members and major decisions are taken in the
unions meetings after discussion and voting.
8. Trade unions are basically concerned with the problems of workers. They are for the protection
of workers. Workers collectively protect their interests and also avoid their exploitation. A trade
union is rightly described as an organised expression of the needs, aspiration and attitudes of the
working class.
9. Trade unions are given legal recognition. Unions can be registered under the indian trade unions
act, 1926. workers are given right to form unions for their protection and self help.
10. The basic principles of Trade unionism are:

Unity in Strength

Equal pay for equal work.

Security of employment/service
Trade unions function on the basis of these cardinal principles. The unions fight back, if
any one of these principles is threatened.
11. Trade unions have shown remarkable progress since their inception; moreover, the character of
trade unions has also been changing. In spite of only focusing on the economic benefits of
workers, the trade unions are also working towards raising the status of labors as a part of
industry.
Prof. Tahereem Bardi
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Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
12. It includes federations of trade unions also.
13. The character of Trade union has been constantly changing due to economic, social, and other
factors. In addition, its origin and growth has been influenced by the number of ideologies.
Trade union movement in India







Trade union movement in our country has a century – long history. In the twenties, soon after the
First World War , working class in our country realized the effectiveness of strike as a means of
obtaining concessions , higher wages and better working conditions. Many strikes were declared
consequently and most of them was successful. This success led to the formation of several
unions.
The All India Trade Unions Congress (AITUC) was set up in 1920 with the objective of
representing workers interests, to co- ordinate the activities of all labour organizations in the
country, and to spread the message about the need for union movement. Hundreds of unions
came into being in big and small industries. Their members, as well as membership , increased
considerably.
A landmark in the history of labour movement was the enactment on the Trade union Act, 1926.
The act gave a legal status to the registered trade unions and conferred on them and their
members a measure of immunity from civil suits and criminal prosecution.
Towards the end of 1920, there was a split in the union movement, the split being caused by the
leaders’ ideological differences.
The prosecution of the communists involved in the Meerut conspiracy case and the failure of the
Bombay textile strike of 1929 brought a lull in trade union activities. Economic depression of the
period also added to the dull phase of union movement.
The disunity in the trade union ranks was aggravated by the starting of three central labour
organisations , namely, the Indian National Trade Union Congress (INTUC) in 1947; the Hind
Mazdoor Sabha (HMS) in 1948, and the United Trade Union Congress (UTUC) in 1949.
As of today, there are more than 50,000 registered unions and most of them are affiliated to one
or the other central trade union. Table 23.1 gives details about the central trade unions, their
affiliates, political affiliation, date of establishment and membership claimed.
Prof. Tahereem Bardi
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Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
TRENDS IN TRADE UNION
A major trend witnessed these days is a change in the attitude of unions towards management
,industry ,government and the economy.




Unions are becoming increasingly matured , responsive, and realistic in their thinking and
action.
Unions are reconciled to economic reforms their accent is on opposing the adverse impact
of reforms and not the reforms per se.
Discussion among trade union circles nowadays is on issues like productivity, total quality
management, technology, competition, MNC s, exports and he like. Major unions like that
of the telecom employees, for example, are on line with the corporations plans of the
department. They are now talking about issues like gearing up for competition and
inculcating a customer friendly approach.
Unions have accepted that there is surplus labour everywhere and the fat needs to be shed.
They are , therefore, extending co-operation to schemes like voluntary retirement, golden
handshake and the like. For instant, 35000 workers of national textile corporation alone
have retired voluntarily.
1. Depoliticisation of unions is another trend witnessed these days. It is too well-unknown, that the
federations of the unions are affiliated to one political party or the other. Being affiliated to one
or the other political party, the unions where more engrossed in toeing the lines of their political
bosses then protecting workers interest. The trends towards depoliticisation started in the 1960s
and received further boost in the post-liberalization era.
The experience of politically free unions is pleasant , reinforcing the belief that further the
unions are from politics, more advantageous it is for them.


The internal union at the ailing Kamani Industry successfully took over the company and
this now running it as a workers ‘ co-operative.
Independent unions obtained a high- court order scrapping the ceiling on house rent
allowance fixed by the Maharashtra Government
2. “Nature abhors vacuum”, so goes the saying. Unions seem to relish affiliations. They are now
formed on the basis of religion and caste. This is indicative of the sociopolitical realities after the
mandalisation of the polity and heightened
sectarian consciousness after the demolition of the
disputed structure.
3. Workers’ associations in our country are highly fragmented and the consequence has been the
multiplicity of unions. Multiplicity is caused by ideological rifts, personal ambitions of leaders,
craft divisions among workers, and the management’s own myopia. The Bokaro Steel Plant has
68 of them; the Calcutta Corporation has the unique distinction of having about 100 unions; and
Prof. Tahereem Bardi
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Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
the Singareni Collieries has 36 unions. SAIL has 240 unions and the Delhi Transport
Corporation has 50.
4. The multiplicity of unions weakens the bargaining strength of employees. For example, the
management of the Calcutta-based Dolphin Laboratories which had raised money in the capital
market in May 1994, to start a second manufacturing base in Gujarat, was forced, two months
later, to shift completely from West Bengal because of intra-union rivalry over the duration of
wage agreement.
5. One of the defects in the trade union movement in our country has been the phenomenon of
outside leadership. Partly, the fault for outside leadership lies with the Trade union Act, 1926,
itself. The act permitted outside participation to the context of 50 percent of the strength of the
office bearers in a union.
6. The clout of the central unions, which peaked during the post nationalization years, has started
waning, for example , the membership of INTUC , which claimed to have enjoyed a strength of
54.35 lakh in 1989, had slipped to 54.05 lakh in 1993 , a fall by 30000.
One of the reasons for this trend is the gradual realization on the part of the workers, who
are young and well educated; hat independent unions are more advantageous than all Indian
federations.
Prof. Tahereem Bardi
19
Human Resource Management (UNIT – IV)
TYBMS (SEM - V)
QUESTIONS
Prof. Tahereem Bardi
20