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Discipline
In a restricted sense, it is the act of imposing penalties for wrong behaviour (negative); broadly speaking, it is a condition of orderliness, where employees willingly practice self control and respect organisational rules and codes of conduct (positive). The differences between the two sides of the same coin could be expressed thus:

The differences between positive and negative discipline

Point Concept Negative Discipline It is adherence to established norms and regulations, out of fear of punishment. Employees do not perceive the corporate goals as their own. Requires intense supervisory control to prevent employees from going off the track. Positive Discipline It is the creation of a conducive climate in an organisation so that employees willingly conform to the established rules. There is no conflict between individual and organisational goals. Employees exercise self control to meet organisational objectives.
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Conflict Supervision

Discipline
Some of the common disciplinary problems confronted by organisations include the following

Common disciplinary problems

Attendance-related problem Unexcused absence Chronic absenteeism Leaving without permission Excessive tardiness Off the Job behaviour problems Insubordination Smoking Fighting with colleagues Gambling, betting Carelessness Sleeping while at work Using abusive language against supervisiors Sexual harassment Accepting bribes, gifts

Dishonesty and related problems Theft, unsafe acts Falsifying employment application Wilfully damaging factory assets Falsifying work records

Performance related problems Failure to complete assigned work Producing substandard products Failure to meet production norms

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Discipline
Causes of Indiscipline

Absence of effective leadership

Unfair management practices Communication barriers

Non-uniform disciplinary action

Divide and rule policies Inadequate attention to personnel problems

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Positive Discipline Approach

The positive discipline, based upon reminders, is a cooperative discipline approach where employees responsibility for the desired behavioural change. The focus is on coping with the unsatisfactory performance and dissatisfactions of employees before the problems become major.

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Steps in positive discipline approach

Step 1: An Oral Reminder: Notice here that the word warning is removed. The oral reminder, supported by written documentation, serves as the initial formal phase of the process to identify to the employee what work problems he or she is having. This reminder is designed to identify what is causing the problem and attempts to correct it before it becomes larger.
Step 2: A Written Reminder: If the oral reminder was unsuccessful, a more formalised version is implemented. This written reminder once again reinforces what the problems are and what corrective action is necessary. Furthermore, specific time tables that the employee must accept and abide by, and the consequences for failing to comply, are often included. Step 3: A Decision-making Leave: Here, employees are given a decision-making leavetime off from work, usually with pay to think about what they are doing and whether or not they desire to continue work with the company: This deciding day is designed to allow the employee an opportunity to make a choice 3/22/2012 correct the behaviour, or face separation from the company.

Progressive Discipline Approach

In a progressive discipline system, the employee is given ample warning of performance or other work related problems. Failure to change his or her behaviour is accompanied by increasingly harsher disciplinary action. Due process is based on the action that employees have the right to be treated fairly, particularly when being disciplined.

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The Progressive Discipline Approach

Improper behaviour

Does this violation warrant disciplinary action? Ye s Does this violation warrant more than an oral warning? Ye s Does this violation warrant more than a written warning? Ye s Does this violation warrant more than a suspension? Ye s T ermination

No

No disciplinary action

No

Oral warning

No

Written warning

No Suspension

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Progressive Discipline Approach

The Red Hot Stove Rule This rule states that discipline should be immediate, consistent, impersonal and should be in writing. Disciplinary Action in India The disciplinary action followed in most Indian companies consists of the following steps:

Issuing a letter of charge

Considering the explanation offered by the employee Issuing a show cause notice Holding an enquiry based on principles of natural justice

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Progressive Discipline Approach

Giving a fair chance to employee to explain his case thoroughly Enabling the employee to cross examine the evidence furnished by management Explain his own point of view without any fear or pressure See that punishment is in line with the offence committed. Making a final order of punishment consisting of various actions such as:

Dismissal
Discharge Suspension Demotion to a lower grade

Withholding of increments
Imposing fines Issuing a warning Initiating follow up action.
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INTRODUCTION
When an employee feels that something is unfair in the organisation, he is said to have a grievance. To be precise, grievances have certain common features;

Features of the term grievance

Perceived non fulfillment of one's expectations leading to dissatisfaction with any aspect of the organization. The dissatisfaction arises out of employment and not due to personal or family problems The reasons could be real or imaginary or disguised. The discontent may be voiced or unvoiced

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EMPLOYEE GRIEVANCES
Causes Economic Work environment Supervision Work group

Miscellaneous
Effects If grievances are not identified and redressed properly, they may adversely affect the workers, managers and the organisation.

Production
Employees Managers
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Grievance Procedure
It is a formal channel of communication used to resolve grievances. Having a formal grievance procedure has its own advantages. Workers get a wonderful opportunity to ventilate their feelings. Management can go back to the roots of a problem quickly. Supervisors, too, have to fall in line and listen to workers complaints more seriously. A fair redressal mechanism would boost the morale of all employees greatly.

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The discovery of grievances

The success of a grievance procedure, to a large extent, depends on the various ways adopted to dig out the problem:

How to uncover grievances?

Observation

A formal grievance procedure

Gripe boxes Open door policy

Exit interviews
Opinion surveys

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Essentials of a formal grievance procedure

A sound grievance procedure must have the following characteristics

Prerequisites of a grievance procedure

Conformity with statutory provisions

Unambiguity Simplicity Promptness Training Follow up

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Steps in the grievance procedure

Identify grievances Define correctly Collect data Analyse and solve Prompt redressal Implement and follow up

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Model Grievance Procedure

The model grievance procedure suggested by the National Commission on Labour involves six successive time-bound steps each leading to the next, in case employees have any reason to complain against any issue affecting their organisational lives.

Model grievance procedure

Pro ce du re Appeal against within a week Manager Grievance Committee HOD Supervisor Foreman Worker 3 days 7 days unanimous 3 days 48 hours Time Frame

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Grievance Procedure
Guidelines for handling grievances

Treat each case as important and get the grievance in writing

19

Talk to the employee directly Discuss in a private place Handle each case within a time frame Examine company provisions in each case Get all relevant facts Control your emotions Maintain proper records Be proactive, if possible.
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Essentials of A Good Disciplinary System

Rules and performance criteria

Documentation of facts Consistent response to rule violations Training of supervisors Prompt action

Impersonal discipline
Reasonable penalty
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Follow up

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21

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Workers taking to streets.????

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ACTION TAKEN BY WORKERS

On 19 October workers from Rico Auto embarked on a

strike and were later joined by workers from other companies like Hero Honda, Honda, Suzuki etc.

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24

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25

Police beating HONDA workers

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Clash between Police and workers

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Introduction An industry is a social world in miniature. Associations of various persons, workmen, supervisory staff, management and employer in industry create industrial relationships. This affects the economic, social and political life of the whole community.
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Introduction
Thus, industrial life creates a series of

social relationship which regulate the relations and working of not only workmen and management but also of community and industry. Industrial relations are inherent in an industrial life
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The term industrial relations refers to the collective relations between employers and employees as a group. It underscores the importance of compromise and accommodation in place of conflict and controversy in resolving disputes between labour and management.
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Major factors influencing industrial relations

Industrial relations are influenced by various factors viz., institutional factors, economic factors and technological factors. 1. Institutional factors: These factors include government policy, labour legislation, voluntary courts, collective agreements, employee courts, employers federations, social institutions like community, caste, joint family, creed, system of beliefs, attitudes of workers, system of power, status, etc.
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Economic factors: These factors include economic organisations, like capitalist, communist, mixed, etc., the structure of labour force, demand for and supply of labour force, etc.. 3. Technological mechanisation, factors: These factors include automation, computerisation etc.

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Industrial relations: major influences/Parties in IR

Government Rules, Awards, Policies Employer Employees

Industrial Relations

Employers Associations Usages, customers, traditions within a country

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Trade Unions

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New dynamics and New actors

Consumers and Community

Pro-labour and Pro investor policies

Changing mindsets of the Judiciary, legislature and

Executive Declining Trade Union Density Worker militancy replaced by employer militancy Collective Bargaining

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Objectives of industrial relations

Enhance the economic position of the worker Minimise conflicts and to the extent possible, avoid conflicts and their negative consequences Allow workers to have a say in important decisions affecting their lives Resolve knotty issues through consultation and negotiation Encourage and develop trade unions in order to improve the workers' collective strength Pave the way for industrial democracy.

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Industrial Relations: Features

Employer-employee interactions

Web of rules Multidimensional Dynamic and changing Spirit of compromise accommodation Government's role and

Wide coverage
Interactive and consultative in nature
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Importance of IR
Promotion and development of healthy labour

management relationships Maintanence of Industrial Peace and avoidance of Industrial strife Development of industrial democracy Sound IR gets unreserved employee co operation It prevents industrial disputes

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Functional requirements of sound IR programme

Top management support

Sound management policies

Adequate practices Detailed Supervisory training Follow up results

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Why more attention is being paid to Industrial Relations

Globalization

Technology
Changes in workforce Organizational

psychology and behavior

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Current and future issue

Cross cultural management Balancing Efficiency with Equity and Labor

Market Flexibility
Freedom of Association, Labor Rights and

Changing Patterns of Work

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Contd
Role of Women Migration Transition Economies

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 DISPUTES

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Introduction
Industrial disputes are a serious problem that many

democratic societies face. At a point of time an industrial relations problems may be confine to one firm, an industry, a sector, a locality/region or the whole nation. Industrial disputes sometimes have a cascading effect.

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Industrial dispute
Dispute and conflict are used more or less as

synonyms in IR. Difference between unrest and dispute Unrest is psychological in nature and the disputes are concrete evidence of unrest. Disputes constitute open manifestations of the feeling of dissatisfaction, disputes are the overt expressions.

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Contd Industrial disputes are essentially symptoms of

industrial unrest and refelect a lack of cooperative spirit and harmonious relations in the industry. Elaborate preventive and reactive measures are put in place to minimise the debilitating social-economicpolitical fallouts of industrial disputes.

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Causes of industrial dispute

Conflict of interests

Economic causes Wages, Bonus, Economic insecurity

Working conditions and Labour welfare Personnel Factors Psychological Factors External Factors

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Features of the term industrial dispute under Industrial Dispute Act

There should be a difference or dispute

The dispute could be between employer-employer,

employee-employee or employer-employee
The dispute must pertain to some work-related issue The dispute must be raised by a group or class of

workers. For example the dispute between one or two workers and the respective employer is not an industrial dispute

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Forms of Industrial Disputes

Strikes: These are collective stoppages of work by workers. General strike Unofficial strike Sectional strike Sit down strike

Slow down strike

Hunger strike

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Forms of Industrial Disputes

Lock outs: Closing down of an undertaking or the suspension of work or the refusal of an employer to continue to employ any number of persons employed by him is known as 'lock out'. Gherao: Gherao means to surround. In this method, a group of workers initiate collective action aimed at preventing members of the management from leaving the office.

Picketing and Boycott: When picketing workers often carry or display signs, banners and placards, prevent others from entering the place of work and persuade others to join the strike. Boycott aims at disrupting the normal functioning of an enterprise.

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Machinery For The Settlement of Industrial Disputes In India

When the relationship between the parties is not cordial, discontentment develops and conflicts erupt abruptly. It is not always easy to put out the fires with the existing dispute-settlement machinery, created by the government. Hence both labour and management must appreciate the importance of openness, trust and collaboration their day-to-day dealings. 3/22/2012

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Machinery for Prevention and Settlement of Industrial Disputes

Machinery for prevention and settlement of disputes

Voluntary Methods
Collective Bargaining Trade Unions Joint consultations Standing Orders Grievance Procedure Code of Discipline

Government Machinery Labour Administration Machinery

State Level Central Level

State Acts

Industrial Disputes Act, 1947

Statutory Measures
Works Committees Conciliation

(A) (B)

C.Officer C. Board

Arbitration Adjudication

(a) (b) (c)

Labour Courts Industrial Tribunals National Tribunals

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Machinery For The Settlement of Industrial Disputes In India

Works committees: As per the Industrial Disputes Act, 1947, works committees have to be set up all those industrial units which employ 100 or more persons. It is basically a consultative body

Giving greater participation to workers Ensuring close interaction between labour and management Generating cooperative negotiation between parties atmosphere for

Opening the doors to unions to have a clear view of what is going on within the unit
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Strengthening the spirit of voluntary settlement 3/22/2012 of disputes

Contd

Joint Management Councils: The JMC normally consists of equal number of representatives of workers and employers looking after three things: information sharing, consultative and administrative matters relating to welfare, safety, training etc and the formulation of standing orders.(of course, without encroaching on the jurisdiction of works committees)

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Machinery For The Settlement of Industrial Disputes In India

Standing orders: These are the rules and regulations which govern the conditions of employment of workers. The Industrial Employment (standing orders) Act of 1946 provides for the framing of standing orders in all industrial undertakings employing 100 or more workers.

Grievance procedure: A model grievance procedure as suggested by the Indian Labour Conference, 1958 has more or less been widely accepted in India now. Code of discipline: It consists of a set of selfimposed obligations voluntarily formulated by the central organisation of workers and employers. 3/22/2012

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Industrial Disputes: Settlement Machinery

Conciliation: The practice by which the services of a neutral third party are used in a dispute as a means of helping the disputing parties to reduce the extent of their differences and to arrive at an amicable settlement or agreed solution. Conciliation officer: an authority appointed by the government to mediate disputes between parties brought to his notice; enjoying the powers of a civil court. He is supposed to give judgment within 14 days of the commencement of the conciliation proceedings. Board of conciliation: The Board is an adhoc, tripartite body having the powers of a civil court created for a specific dispute(when the conciliation officer fails to resolve disputes within a time frame, the board is appointed) Court of enquiry: In case the conciliation proceedings fail to resolve a dispute, a court of enquiry is constituted by the government to investigate the dispute and submit the report within six months.
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Machinery For The Settlement of Industrial Disputes In India

Voluntary arbitration: It is the process in which the disputing parties show willingness to go to an arbitrator (a third party) and submit to his decision voluntarily. Adjudication: It is the process of settling disputes compulsorily through the intervention of a third party appointed by the Government. The Industrial Disputes Act provides a three-tier adjudication machinery consisting of:

Labour Court
Industrial tribunal National tribunal

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Trade unions

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 Voluntary organizations of workers formed with a view to

defending and advancing their collective interests either mutually or in relation to outside parties such as employers, government and other trade unions.
It is a continuous association of wage earners for the

purpose of maintaining or improving the conditions of their working title. (Webb and Webb)

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 The Indian Trade Unions Act, 1926, defines a trade union

as any combination whether temporary or permanent formed primarily for the purpose of regulating the relations between workers and employers or between workmen and workmen, or between employers and employers or for imposing restrictive conditions on the conduct of any trade or business and includes any federation of two or more trade unions.

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 Wages Working conditions Job security Welfare activities

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Types of industrial action that can be taken by trade unions:

Strike

Work to rule
Go slow

Picketing
Overtime ban

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What do trade unions do

Negotiation

Representation
Information and

advice Member services

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Functions of trade unions

Militant functions

Protective functions
Fraternal functions Political functions Social functions

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Kinds of unions
Craft Unions

Industrial Unions
General unions Federations

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White collar trade union

All clerical or office staff who do not work on the shop

floor, are termed as white-collar workers as their work & working places are clean. They are generally involved in a desk job or providing service over the counter.

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Contd They are non-manual workers forming a distinct social

ground, characterized by divergent socio-economic backgrounds, level of education, manner of speech, social custom & ideology. They are better educated & have jobs requiring mental capabilities to a greater extent.

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Why white-collar workers unions?

Seeing how unions of blue-collar had improved their

service, employment & working conditions by bargaining collectively with their employers whitecollar workers also started uniting and organizing themselves & forming their unions for fighting for better pay scales, more fringe benefits, internal promotion by collective bargaining

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INTRODUCTION
The basic objective of collective bargaining is to arrive at an agreement on wages and other conditions of employment. Both labour and management must reconcile their differences voluntarily through negotiations, yielding some concessions and making sacrifices in the process.

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Important features of Collective Bargaining

Collective
Strength Flexible Voluntary Continuous Dynamic Representation Bipartite process complex

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Objectives of collective bargaining

resolve differences over knotty issues

protect the interests of workers through collective action

carry out negotiations voluntarily, without interference from a third party arrive at an amicable agreement through a process of give and take

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The substance of bargaining

1.

2.

Wages and working conditions Work norms

3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

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Incentive payments Job security Changes in technology Work tools, techniques and practices Staff transfers and promotions Grievances Disciplinary matters Health and safety Insurance and benefits Union recognition Union activities/responsibilities Management rights
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Steps in the collective bargaining process

Identification of the problem Collection of data

Selection of negotiators
Climate of negotiations Bargaining strategy and tactics Formalizing the agreement Enforcing the agreement

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Collective Bargaining In India

Unions occupying centre stage only after 1900

Mostly legal machinery used to resolve disputes After independence, collective bargaining gained ground Productivity bargaining is increasingly popular in recent times due to global competition, customer-focused manufacturing and marketing etc. Factors inhibiting collective bargaining Employer's reluctance Weak unions Inappropriate legislative framework
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Conditions Essential For Collective Bargaining

To strengthen collective bargaining, both parties must carry out negotiations in an atmosphere of mutual trust and faith, observing certain essential things:

Unanimity among workers positive attitude willing to make some sacrifices prepared to implement previously agreed things strictly

Strength of both parties

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Representative authority
Representatives must understand the problems of both parties Willing to discuss everything and not necessarily something related to wages and monetary benefits Parties having respect toward each other Carry out negotiations free from unfair practices

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WORKERS PARTICIPATION IN MANAEMENT

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Workers participation in management

Workers have a say in the decision making process

of an enterprise Crystallises the concept of Industrial democracy Importance of workers participation in management Mutual understanding Higher Productivity

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Meaning of WPM
WPM is a system of communication and consultation, either formal or informal, by which employees of an organization are kept informed about the affairs of an undertaking and through which they express their opinion and contribute to mgt decisions.

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Objectives of WPM
Increasing productivity for the general benefit of

the enterprise, the employees and the community; Giving employees a better understanding of their role in the working of the industry & of the production process; and Satisfying the workers urge for self-expression, thus leading to industrial peace, better relations and increased co-operation.

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Forms of WPM
Informative & associative participation Consultative participation Administrative participation Decision participation

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Participative forums in India

Works committees;

Joint mgt. Councils;

Joint councils; Unit councils; Plant councils; Shop councils; Workers representative on the board of mgt; and Workers participation in share capital.

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Conditions necessary for effective working of the scheme Congenial work environment Well defined roles Faith in the efficacy of the scheme Wide publicity Should be evolutionary Free flow of information throughout the enterprise Should be based on mutual trust Decisions taken by different participatory forums must be sincerely carried out in the stipulated time
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Reasons for failure of WPM

Ideological differences between the employer and the

employees regarding the degree of participation. Failure to imbibe the spirit of participation by the parties Multiplicity of participative forums Lack of strong trade unionism Unhappy IR Illiteracy of workers Non co-operative attitude of the working class Delays in the implementation of the decisions of the participative bodies

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Importance
Industrial harmony

Industrial democracy
Less resistance to change Creativity and innovation

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Introduction
Every organization hears what employees say. Good organization listens to what its employees have to say. But organizations having employee welfare as a priority listens to what employees dont say.
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What is employee welfare???

Employee welfare can be defined as the efforts made

to make life worth living for workmen.

It includes anything that is done for the comfort and

improvement of the employees and is provided over and above the wages.

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 Welfare helps in keeping the morale and motivation of the

employees high so as to retain the employees for longer duration.

Employee welfare entails all those activities of employer

which are directed towards providing the employees with certain facilities and services in addition to wages or salaries.

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Objectives

To provide better life and health to the workers To make the workers happy and satisfied To relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of living of the workers.

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MERITS
Enables workers to have a richer and satisfying life

Raises standard of living of the workers

Motivates employees Employee retention Minimized social evils Better job satisfaction Cuts down labor turnover

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Contd There are several agencies involved in the Labour

welfare work namely the Central Government, State Governments, Employers, Trade unions and other social service organisations.

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Contd Employers with a progressive outlook has always

invested heavy amounts in enriching the life of workers and have always gone beyond what has been stated in the rule book..

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 According to ILO- Social Security is the protection

which society provides for its members, through a series of public measures, against the economic and social distress that otherwise would be caused by the stoppage or substantial prediction of earning resulting from sickness, maternity, employment, injury, unemployment, invalidity, old age and death.

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Features
Mechanism to solve problem of insecurity.

It is a group effort in place of individual effort.

Protect the workers from various contingencies of life. Collective effort of employee, employer and

government. Idea to provide social justice.

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Objective
Compensation

Restoration
Prevention

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Purpose of Social Security

To give individuals and families the confidence that

their level of living and quality of life will not erode by social or economic eventuality. To provide medical care and income security against the consequences of defined contingencies.

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Contd To provide physical and vocational rehabilitation to the

victims. To prevent or reduce ill health or accidents in the occupations. To protect against unemployment by maintenance and promotion of job creation. To provide benefit for the maintenance of any children.

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Types
Social Insurance PF, group insurance

Social Assistance benefits offered out of States

general revenue

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Social Security Benefits

Medical care

Sickness Benefit
Unemployment benefit Old age benefit Employment injury benefit Maternity benefit

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An Indian overview
Enactment of several laws to provide social security

Schemes are complicated and hence beneficiaries put

into a lot of trouble. Lack of trained staff to implement these schemes Considerable overlapping of schemes. Protracted legal battles in settling claims

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