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Industrial relations Sep 2020
1. Juvekar Industries is a medium size mineral water bottling plant. They have around 230 people working in the organization. The mix of these is 200 workers on the floor handling machinery and loading-unloading of the products. Most of these are locals in the area and not very well qualified. 15 employees are on the supervisory positions on various tasks and sub-departments. These are educated in the range from 10+2 and Graduation. 5 Management graduates working as managers – majorly into sales and marketing department. 5 production experts and engineers, holding controller positions. A staff of 5 in accounts and other back office departments. Mr. Navathe – the production controller emphasizes on worker’s participation at his floor and wants to implement some activities in that. Please list down activities that are included as worker’s participation and which three activities would you suggest Mr. Navathe to implement at his organization?
Answer: Workers’ participation in management decisions meets the psychological needs of the workers and bridges the gap between management and the workers. Their participation enables them to shape industrial relationships. Work committees with equal representation of employers and employees encourage workers’ participation. Their participation improves organisational communication, enhances employee commitment, and increases productivity. One form of workers’ participation is ‘self-management’. Here, the workers manage the industry through workers’ councils and management boards. Workers’ councils take decisions regarding investments and achievement of economic goals. The management boards prepare monthly
2. Shekar Sahu wishes to start uniting his colleagues in the production unit of Speed Car Manufacturers. He has spoken to his management and also a few of his colleagues about the same. He has also understood the process of registration of the union and has collected all the required forms. However, he still wishes to understand the issues that will be mainly handled with a trade union. Please list down the issues for trade unions to handle commonly.
Answer: A trade union or labour union is an administration of workforce grouped together to attain common goals such as enhanced operational circumstances. The Trade Union Act of India 1926 defines a trade union as ‘an organisation, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive condition on the conduct of any trade or business, and includes any federation of two or more trade unions.’.
Workers join unions for reasons like unions having better bargaining power than an individual worker. Unions regulate discrimination at the work place, and provide a medium for workers to voice
3. Jivanbhai group of companies needs to run a salary survey. Before the HR head, Vishal Sabharwal, approaches a consultant, he wants to present some basic information to the Board of Directors. Please help Vishal by answering following questions.
a. Vishal wants to present three different systems of wage determination. Explain the three systems.
b. Vishal also wants to present various kinds of wage differentials to his Board of Directors. Please list them and describe each in one line.
Answer: a) Three different systems of wage determination
Time rated payment system: It is the most profitable, convenient and simple payment system where the output per worker is not measurable. In this system, the employees are paid according to the work done during a certain period of time, i.e., a day, a week, or a month. Under this system, the basic rate for pay is fixed through negotiation, by reference to the local market, the competency of employee and the job evaluation method. The minimum wage rates, the need -based wage rate, fair wage or living wage fixed by government and/or collective bargain are on time-based principles. Thus, Time Rated Pay System is calculated with the help of Straight time system where earnings are calculated with the help of time and standard rate. The equation is given
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