A STUDY OF INDUSTRIAL RELATIONS

AT M/s PERAMBALUR SUGAR MILLS LTD, ERAIYUR,

PERAMBALUR Dt.

Thesis submitted in
Partial fulfillment for the award of
DEGREE OF DOCTOR OF PHILOSOPHY
IN
MANAGEMENT

By
A. XAVIER AMALADOSS
Register No. J 546100014

Under the Supervision and Guidance of

Dr. R. MATHIVANAN, M.Com., M.Phil., MBA., D.L.L., Ph.D.,
Director, UGC – Academic Staff College,
Bharathiar University, Coimbatore

VINAYAKA MISSIONS UNIVERSITY

SALEM, TAMILNADU, INDIA

December 2015
 VINAYAKA MISSIONS UNIVERSITY

CERTIFICATE BY GUIDE

I, Dr. R.MATHIVANAN, M.Com., M.Phil., MBA., D.L.L.,

Ph.D., certify that the thesis entitled “A STUDY ON INDUSTRIAL

RELATIONS AT M/s PERAMBALUR SUGAR MILLS LTD,

ERAIYUR, PERAMBALUR DISTRICT” submitted for the DEGREE

OF DOCTOR OF PHILOSOPHY by Mr. A. XAVIER AMALADOSS is

a record of research work carried out by him during the period from

June 2005 to December 2015 under my Guidance and Supervision.

This work has not formed the basis for the award of any other

Degree, Diploma, Associate –ship or Fellowship titles in this or any

other University or other similar institutions of higher learning.

Place: Coimbatore Signature of Supervisor with

Designation

Date : 5th December 2015

 VINAYAKA MISSIONS UNIVERSITY

DECLARATION CERTIFICATE

I, A.XAVIER AMALADOSS, declare that the thesis entitled

“A STUDY ON INDUSTRIAL RELATIONS AT M/s PERAMBALUR

SUGAR MILLS LTD, ERAIYUR,PERAMBALUR DISTRICT”

submitted by me for the DEGREE OF DOCTOR OF PHILOSOPHY

is a record of research work carried out by me during the period from

June 2005 to December 2015 under the guidance of Dr.

R.MATHIVANAN, M.Com., M.Phil., MBA., D.L.L., Ph.D., and has not

formed the basis for the award of any Degree, Diploma, Associate-

ship or Fellowship titles in this or any other University or other similar

institutions of higher learning.

Place: Perambalur Signature of the

candidate

Date : 5 December 2015

 ACKNOWLEDGEMENT

I wish to express my sincere gratitude and indebtedness to the Chancellor and

Registrar of Vinayaka Missions University for having permitted me to carry out this

research work.

I place on record my deep sense of gratitude to my Supervisor and Guide,

Dr. R. Mathivanan, M.Com. M.Phil, MBA. Director, UGC – Academic Staff College,

Bharathiyar University, Coimbatore. It has been a pleasure working with him learning

from his vast experience. He has been a constant source of inspiration and

encouragement to me.

My sincere thanks are due to Prof. Dr. Rajendran, M.A (Psy), Ph.D., (Con.

Beh) for his encouragement during the course of my research work. His incomparable

teaching experience is enlightening so many teachers.

I place on record my sincere thanks to Mr. John Ashok, Vice Chairman,

Thanthai Hans Roever group of Institutions for his belief on me and his continuous

encouragement.

I have to thank the love and concern of our son Mr. N. M. Rajen Prabakar,

M.Com., B.L., M.D, Shri Mangala Rocks Pvt. Ltd, Krishnagiri who called me a doctor

long back and insisted on completing the work. I take pleasure in thanking my friends

Dr. R. Rani Hema Malini and Dr. Partheeban, St. Peter’s University, who are my

source of inspiration.

I will fail in my duty if I don’t thank my wife Ms. R. Flora Sahayamary, M.A,

MBA, M.Ed, M.Phil, without whom I might not have completed this work. My thanks are

due to my sons X. Prince Mejel, B.Tech (IT) and X. Prabu Mejel, B.Sc (VISCOM)

for their Love that paves my path.

Amal
 TABLE OF CONTENTS

CONTENT Page no

CHAPTER I INTRODUCTION
1.1 Introduction 1
1.2 Concept & Evolution of Industrial Relations 3
1.3 Industrial Relations 8
1.4 Industrial Relations in developed countries 11
1.5 Industrial Relations in India 15
1.6 Objectives of Industrial Relations 17
1.7 Indicators of Industrial Relations 19
1.7.1 Indicators of poor Industrial Relations 19
1.7.2 Indicators of healthy Industrial Relations 20
1.8 Meaning of the key terms 21
1.9 Progress of Sugar Industries in India 23
1.10 Progress of Sugar Industries in Tamilnadu 40
1.11 Rationale of the study 46
1.12 Summary 48

CHAPTER II REVIEW OF LITERATURE

2.1 Workers’ Participation in Management 49
2.2 Communication Process 60
2.2.1 Development of Organisational Communication 61
2.2.2 Cross Functionality 63
2.3 Welfare Measures 68
2.4 Trade Union Relations 91
2.5 Grievance Mechanism 110
Summary 116
 CONTENT Page no

CHAPTER III NEED FOR THE STUDY & COMPANY PROFILE

3.1 Statement of the Problem 118
3.2 A picture of Perambalur District 120
3.3 M/s Perambalur Sugar Mills Ltd 122
3.4 Sugar Policy 125
3.5 Taxes 128
3.6 By products 131
3.7 Divisional offices 132
3.8 Welfare Measures for Cane growers 134
3.9 Description of Sugar Manufacturing 136
3.10 System of work 138
3.11 Welfare Measures for Employees 139

CHAPTER IV OBJECTIVES & HYPOTHESES

4.1 Scope of the study 148
4.2 Objectives of the study 148
4.3 Hypotheses 149

CHAPTER V RESEARCH METHODOLOGY

5.1 Research design 152
5.2 Sources of data 153
5.3 Variables used 154
5.4 Pilot Survey and Reliability test 154
5.5 Sampling Design 155
5.6 Analytical tools 156
5.7 Chapter Ordering 158
5.8 Limitations of the study 159
 CONTENTS Page No

CHAPTER IV RESULTS AND DISCUSSION

6.1 Percentage Analysis Socio-demographic value 160
6.1.1 Sex 161
6.1.2 Age 162
6.1.3 Marital Status 163
6.1.4 Domicile 164
6.1.5 Designation 165
6.1.6 Qualification 166
6.1.7 Experience 167
6.1.8 Monthly Income 168
6.2 Analysis of Variables 169
6.2.1 Workers’ Participation in Management 170
6.2.1 Communication Process 171
6.2.3 Welfare Measures 172
6.2.4 Trade Union Relations 173
6.2.5 Grievance Mechanism 174
6.3 Inferential Analysis 175

CHAPTER VII FINDINGS AND CONCLUSIONS

7.1 Distribution of Demographic variables 206
7.2 Distribution of Employee Profile variables 206
7.3 Distribution of Independent variables 207
7.4 Suggestions 215
7.5 Scope for further Research 219
7.6 Conclusion 220
 LIST OF TABLES

Table Title Page

no No
1.1 Production sugar & Molasses 34
1.2 Cane acreage in India 37
1.3 Yield of cane in India 38
1.4 Sugar production from sugarcane in India 39
1.5 Cane acreage in Taminadu 41
1.6 Yield of cane in Tamilnadu 43
1.7 Sugar production in Tamilnadu 44
1.8 Sugar factories operating in Tamilnadu 45
3.1 Area of Operation 123
3.2 Cane price paid in the period 2001 – 2011 126
3.3 Cane registration, crushing and sugar recovery 133
6.1.1 Frequency distribution of Male and Female employees 161
6.1.2 Frequency distribution of Age-wise data of employees 162
6.1.3 Frequency distribution of Married and unmarried 163
6.1.4 Frequency distribution of Domicile of employees 164
6.1.5 Frequency distribution of different designation of 165
employees
6.1.6 Frequency distribution of qualification of employees 166
6.1.7 Frequency distribution of Experience of employees 167
6.1.8 Frequency distribution of income data of employees 168
6.2.1 Level of satisfaction on Workers’ Participation 170
6.2.2 Level of satisfaction on Communication process 171
6.2.3 Level of satisfaction on Welfare Measures 172
6.2.4 Level of satisfaction on Trade Union Relations 173
6.2.5 Level of satisfaction on Grievance Mechanism 174
6.3.1 Perceptions of Male and Female employees with 175
respect to Industrial Relations showing Mean, SD, t-
significant level of mean
6.3.2 Perceptions of Married and unmarried employees with 176
respect to Industrial Relations showing Mean, SD, t-
significant level of mean
6.3.3 Perceptions of Rural and urban employees with respect 177
to Industrial Relations showing Mean, SD, t- significant
level of mean
6.3.4 ANOVA for Significant Difference between Age Group 178
with Respect to Dimension of IR
6.3.5 ANOVA for Significant Difference between Years of 179
Experience with Respect to Dimension of IR
6.3.6 ANOVA for Significant Difference between Income level 180
with Respect to Dimension of IR
 Table Title Page
no No
6.3.7 Chi-square table for Workers’ Participation and 181
Communication
6.3.8 Chi-square table for Workers’ Participation and Welfare 182
measures
6.3.9 Chi-square table for Workers’ Participation and Trade 183
union relations
6.3.10 Chi-square table for Workers’ Participation and 184
Grievance Mechanism
6.3.11 Chi-square table for Communication and Welfare 185
Measures
6.3.12 Chi-square table for Communication and Trade Union 186
Relations
6.3.13 Chi-square table for Communication and Grievance 187
Mechanism
6.3.14 Chi-square table for Welfare Measures and Trade Union 188
Relations
6.3.15 Chi-square table for Welfare Measures and Trade 189
Grievance Mechanism
6.3.16 Chi-square table for Trade Union Relations and 190
Grievance Mechanism
6.3.17 Friedman test for significant difference between mean 191
ranks towards opinion on Workers’ Participation in
Management
6.3.18 Friedman test for significant difference between mean 193
ranks towards opinion on Communication Process
6.3.19 Friedman test for significant difference between mean 194
ranks towards opinion on Welfare Measures
6.3.20 Friedman test for significant difference between mean 196
ranks towards opinion on Trade Union relations
6.3.21 Friedman test for significant difference between mean 198
ranks towards opinion on Grievance Mechanism
6.3.22 Correlation Coefficient between Dimensions of 199
Industrial Relations
6.3.23 Multiple Regression Analysis 203
 List of Diagrams

No Title Page no
6.1.1 Pie chart of Male and Female 161
Employees percentage
6.1.2 Pie chart of Age-wise Employees 162
percentage
6.1.3 Pie chart of married and unmarried 163
Employees percentage
6.1.4 Pie chart of rural and urban Employees 164
percentage
6.1.5 Pie chart of designation wise 165
Employees percentage
6.1.6 Pie chart of Qualification-wise 166
Employees percentage
6.1.7 Pie chart of Experience-wise 167
Employees percentage
6.1.8 Pie chart of Income-wise Employees 168
percentage
 CHAPTER I

INTRODUCTION

1.1 INTRODUCTION

The Industrial revolution, which took place during the 18th & 19th

centuries, had played a major role in the concept of industrial relations.

The master-servant relationship in a concern was totally disturbed. In

the later years acceleration in industrialization paved the way for a very

complex and impersonal relations between the workers and employers.

The workers were treated as a mere commodity that could be easily

exchanged. The workers were treated in an ill-mannered fashion, poor

salary, unduly long hours, unhealthy working conditions marked the life

of the workers.

After the First World War a tremendous change took place in

the industrial relations. The workers were retaliating to attain their

demands, resulting in strikes and lockouts on both sides. The

government did not take any necessary steps to solve the problems

that arose. The Royal commission on Labour observed in 1921 “the

attempt to deal with unrest must begin rather with creation of an

atmosphere unfavorable to disputes than machinery for their

settlement”. In continuation of the above, it is felt that, Labour –

management relations play a predominant role and take part as a vital

function in the management of modern corporate administration. . For

1
every nation to achieve the normal rate of industrial progress, among

other factors, the most important is the continuation of healthy labour-

management relations. Healthy labour-management relations indicate

“A situation when labour and management work mutually and

pleasantly towards their socially desirable goals”

In Edwin Flippo’s view the term ‘Industrial Relations’ refer to

all type of relationships that exist in an industrial enterprise, and they

constituted by employer and employees.”

The most exhaustive description so far available in industrial

relations is in Richardson’s “An introduction to the study of Industrial

relations published in 1954. He states that “the subject of industrial

relation include individual relations and joint consultations between

employers and work place at the place of work, collective relations

between employers and their organisations and the trade unions and

the part played by the state in regulating these relations” He points out

that there are three aspects of industrial relations namely individual

relations, collective relations and intervention by the State.

Hence, the researcher has selected the topic Industrial

Relations in a rural place Perambalur Tamilnadu for his present

research. The study was done in the period 2001 to 2011.

2
1.2. CONCEPT AND EVOLUTION OF INDUSTRIAL RELATIONS

During the pre-independence period, industrial relations policy of

the British Government was one of laissez faire (unautocratic) and also

selective intervention. There were hardly any labour welfare schemes.

After independence, labour legislations have formed the basis for

industrial relations and social security. These legislations have also

provided machinery for bipartite and tripartite consultations for

settlement of disputes. Soon after independence, the Government at a

tripartite conference in December 1947 adopted the Industrial Truce

Resolution.

Several legislations were implemented to maintain industrial

peace and harmony such as The Employees State Insurance Act, 1948,

The Employees Provident Fund and Miscellaneous Act, 1952, and The

Minimum Wages Act, 1948, The Payment of Bonus Act, 1965 and The

Gratuity Act, 1972, etc., in the different years. In the early 1990s the

process of economic reforms was set in motion when the government

introduced a series of measures to reduce control on industries,

particularly large industries. The workers have opposed economic

liberalization policy for fear of unemployment while entrepreneurs have

welcomed it with the hope of new opportunities to improve Indian

industries. The new economic policy has directly affected industrial

relations in the country because the government has to play a dual role,

one for protecting the interest of the workers, and the other to allow a

3
free interplay of the market forces. Economic reforms have created

competitive markets, by removing barriers to entry through

liberalization, globalization and privatization concept. Fiscal stabilization

has resulted in drastic reduction in budgetary support to the public

sector commercial enterprise while exposing these enterprises to

increase competitions from private sector.

Labour welfare is being defined in several ways and is therefore

understood in various ways in various countries. A precise and

comprehensive definition of the term is yet to be made. Arthur James

Todd aptly remarks, “A series of sharply divers opinions exist on the

motives and merits of industrial welfare work”.

The oxford dictionary defines labour welfare as “effort to make

life worth living for workers”. Chambers dictionary defines welfare as

“A state of faring or doing well, freedom from calamity, enjoyment of

health and prosperity”. The Encyclopedia of Social Science defines it

as “the voluntary efforts of the employers to establish, within the existing

industrial system, working and sometimes living and cultural conditions

of employees beyond what is required by law, the customs of the

industry and the condition of market.

In the Report II of the ILO Asian Regional Conference, it has

been stated that worker’s welfare may be understood that it is essential

to establish services, facilities and amenities outside or inside the

4
workplace. Thereby enable the workers employed to work in healthy

and congenial surroundings with high morale.

The Labour Investigation Committee (1944-46) includes under

labour welfare activities “anything done for the intellectual, physical,

moral and economic betterment of the workers, whether by employers,

by government or by other agencies, over and above what is laid down

by law or what is normally expected as per of the contractual benefits

for which the workers may have bargained”.

The significance of welfare measures was accepted as early as

1931. The Royal Commission on labour stated that the benefits are of

great importance to the worker which he is unable to secure by himself.

The schemes of labour welfare may be regarded as a wise investment

because it would bring a profitable return in the form of greater

efficiency. The definitions and reports given by different authors and

committees reveal the importance of labour welfare measures and its

impact on labour belongs to the various sectors.

The philosophy of labour welfare measures is based on the

theory that the success of industrial development depends on the

harmonious relations and co-operation between labour and

management. The labour has a sound knowledge and experience at his

jobs. If rightly directed and fully utilized, it would make a good

contribution to the prosperity of the organization. The prosperity can be

5
achieved only through the satisfaction of the labour. Efficiency is the

matter of running an organization and maintenance of productivity at a

rising rate and higher level, and call for good labour relations throughout

the process of production. It enables all those engaged in the

organization to provide their maximum personal contribution to its

effective working.

Pyle and George (2009), have pointed out that “Even one

discontented employee or an employee nursing a grievance can

eventually infect an entire organization with the germ of discontent

which in turn, will result in lower efficiency, poor morale and reduction in

overall production”.

The Report of the Committee on Labour Welfare (1969)

includes “such services, facilities and amenities as adequate canteens,

rest and recreation facilities, sanitary and medical facilities, transport

facilities, accommodation of workers employed far away from their

homes and social security measures which contribute to improve the

conditions under which worker or employer.”

Mishra and Bhagat (2010), in their study “Principle for

Successful Implementation of Labour Welfare Activities”, stated that

labour absenteeism in Indian industries can be reduced to a great

extent by providing good housing, health and family care, canteen,

educational and training facilities and provision of welfare activities. The

6
principle for successful implementation of labour welfare activities is

nothing but an extension of democratic values in an industrialized

society.

The labour welfare activities in the form of health service centers

are provided with the philosophy that a good medical service center will

help in ensuring sturdy improvement of job satisfaction and productivity.

A healthy worker is a basic requirement of an organization.

Therefore, it is incumbent on the part of the employer to look after

the health of the workers and to provide such facilities, which would

ensure minimum health hazards. The law concerning prescribes the

minimum standard but progressive employer must extend his activities

to protect the health of the labourers and their dependents. In return,

their co-operation will be wholehearted, more efficient and attitude will

be proper and congenial.

Thus, the whole field of welfare is said to be the one “in which

much can be done to combat the sense of frustration of the industrial

workers, to relieve their personal and family worries, to improve their

health, to afford self expression, to offer them some sphere in which

they can excel others and to help them to a wider conception of life”.

7
1.3 INDUSTRIAL RELATIONS

Prof. Yoder (1972), defines industrial relations as the whole field

of relationship that exists because of the necessary collaboration of

men and women in the employment process of industry. Industrial

relations are associated in productive work including industry,

agriculture, mining, commerce finance, transport and other activities.

Dunlop (2006), defines industrial relations as ‘the complex inter-

relations among workers, managers and government. According to

Lester, opinion, industrial relation aims at arriving on solutions between

the conflicting objectives and values, profit motive and social gain,

discipline and freedom, authority and general well being of the society.

Industrial democracy, between bargaining and cooperation and

between the conflicting interests of the individual, the group and the

community.

Katz (1985), “Assessing the effects of industrial relations systems

and efforts to improve the quality of working life on organizational

effectiveness”. The study assesses the relationship among

characteristics of industrial relations systems, efforts to improve the

quality of working life, and selected measures of organizational

effectiveness in 25 manufacturing plants belonging to one company on

the basis of both research from organizational behavior and industrial

8
relations, they study offers the proposition that industrial relations

systems affect organizational effectiveness through two channels.

The empirical results show (1) strong evidence of an association

between measures of the performance of industrial relations systems

and economic performance, and (2) evidence that efforts to improve

quality of working life, have little impact on economic performance.

Labour-management relationship plays an important role in

enriching quality of work life (Bernadin, 2007). A positive feeling about

the company is considered to be an ethos that binds people together

and discourages the constituent members of the company from leaving

(Sayeed, 2001, p.254). The management should develop and

implement adequate HR strategies such as empowerment, joint

decision making, multi skilling, etc, for optimum utilization of existing

human resources in the competitive environment (Saini, 2000).

The word of Kularajah (1971) in his article stated that it is vital

that in the running of an organization, a correct and proper relationship

should exist between employer and employee. On the other hand the

employees not only understand the objectives of the organization but

also have positive attitude towards the organizations”.

Raj (1969), attempted to study personnel management practices

in a cross section of public, private and co-operative enterprises. The

study covers 32 organizations and throws light on various aspects of

9
personnel management such as recruitment, selection, training,

promotion and transfer, performance appraisal and career development,

employee morale, wage and salary administration, welfare services,

union-management relations and personnel organizations.

Veeraraghavan, (1960) conducted study in three industries about

the employees’ attitudes, satisfaction and discontentment of employees

with regard to wages, supervision, management, job, co-workers,

working conditions, communication, welfare facilities and labour union.

The study has revealed that the workers in private enterprises were

more satisfied than those working in public enterprise. Evidences

indicate that a deliberate effort to create favourable working conditions

was allowed by an improvement in morale.

The objectives of industrial relations, are to facilitate production,

to safeguard the interests of both labour and management by enlisting

cooperation of both, to achieve a sound harmonious and mutually

beneficial relationship between employees and employers and thus to

promote the general well being of society.

Industrial relations involve, besides the maintenance of employer-

employee relationship, maintenance of relations between labour unions

and management, various groups of employees and also between the

industry and society (government, local bodies, other institutions and

the public). Successful industrial relations may mean promotion and

10
development of (i) healthy labour-management relations, (ii) industrial

peace (by avoiding conflicts) and (iii) industrial democracy.

Industrial relations system comprise of workers (employees) and

their organizations (trade unions), management (employers) and their

organizations (employers’ associations, federations and chambers) and

the government (central, state and local bodies). Sincere and effective

functioning of these components can ensure proper industrial relations.

1.4 INDUSTRIAL RELATIONS IN DEVELOPED COUNTRIES

Some developed countries studies related to impact of labour

welfare measures and industrial relations are taken for the clear

understanding of the concept.

The principle of any national systems of industrial relations largely

depends on the importance given to the labour welfare measures by

which the nations judge and legitimatize. The values determined in the

U.K. system, are believed in economic freedom and desire for

industrial peace. The three essential principles of the British system are:

a) Preference for collective bargaining which is developed to suit

historical circumstances.

b) Preference for voluntary procedural rules for collective bargaining

which lead to agreements by parties, and is based on continuous

11
recognition of mutual interests in settling disputes without state

intervention and

c) Emphasis on procedure as opposed to substance, which means

that parties are more concerned with reaching a workable compromise

through the accepted machinery.

In U.S.A., emphasis is more on the substance of agreement

pertaining to wages, hours of work, safety etc. But the U.K. government

emphasis on mediation services, against forced political contributions,

against political strikes and against the use of violence in labour

disputes.

Unions refuse to allow collective bargaining to take place except

through them. An assumption is that good relation created by voluntary

actions and collective bargaining has strong support in the society. With

the non-intervention of government, British collective bargaining

represents a pure form of voluntarism and free contract (Chand, 1989).

Each year, corporate America provides nearly 2 billion hours of

training to approximately 60 million employees at a cost of $55 to $60

billion (Industry Report, 1997). Effectiveness research can maximize the

impact of this investment on worker safety, productivity, and profits. To

equip America’s workforce with the skills necessary in today’s economy,

the U.S. Departments of Education and Labour have recently co-

12
sponsored several initiatives that reflect the national importance of

worker training.

The Training Effectiveness (1999), said by the Occupational

Safety and Health Act of 1970 (Public Law 91-596) was enacted to

assure, safety and healthy working conditions for every working man

and woman in the nation. The Act mandated improved research,

regulations, and training aimed at reducing the incidence of

occupational injury and illness.

In addition to this, the unions in United States, concentrate on

matters which directly affect the lives of the workers. In non-union

settings, employees have been able to determine all matters unilaterally

by the bargaining power of individual workers. The United States

government has limited itself to setting the ground rules rather than its

terms in the relationship between labourer and management. There is

no central mechanism for dealing with the social problems of workers.

While unions have become strong, U.S. business has more than

matched that strength. The difficulties confronting U.S. unionism derived

from the weakening of collective bargaining performance at the job,

plant and company levels.

The notable characteristics of the legal system concerning

Japanese labour management relations, is the constitutional guarantee,

which stipulates the rights of the workers to organize, bargain and act

13
collectively. Trade unions in Japan are set up as company-by-company

units. Collective bargaining is between the management and the union

of each enterprise. The Japanese industrial relations are based on four

pillars such as:

a. Life time employment

b. Subsistence wages

c. Enterprise unionism and

d. Social nature

The above characteristics are fortified by the unique Japanese

method of management, whereby, decisions are thrashed out by

managers endorsed at the lower levels and endorsed at the higher level

as opposed to the downward flow of decisions which are more common

in the west. Small group activity, where workers form themselves into

voluntary groups to discuss company problems and suggest methods is

unique; to the system of IR in Japan. (Ibid., p.22).

The Japanese government provides facilities for dealing with

disputes but never gets involved. The Japanese believe that the art of

management is the art of creating circumstances in which conflict does

not arise, and that is the essence of peaceful industrial relations in

Japan.

14
1.5. INDUSTRIAL RELATION IN INDIA

In the year 1950s, there was a strong belief that employees were

not expected to question ‘why’ but only ‘to do-and-die’. In the year

1960s, terms like “manpower”, “personnel” came to be used and instead

of controlling the employees, it became more and more acceptable to

manage personnel. As studies reveal that productivity of the workers

could be improved if they are organized for the work. Moreover, after

1970s, employers realized that beyond a point, productivity depended

on workers (Monappa, 1989). In addition, workers started demanding

whatever they expected from the employers more than their salaries. In

the present context of sharing the global thinking, Indian industries

started to introducing motivation theory, social-comparison process, job

enrichment, participative management, empowerment, quality of work

life, total quality management and Kaizen.

At the same time, experts observed that there are some strategic

challenges faced by the industry such as increasing competition,

globalization of business, technological change, changing work culture,

resource constraints and transition from industrial to information society,

unstable market owing to economic conditions, increasing demands by

corporate stake-holders, and a complex psychological environment.

However, in the Indian context, emotions, feelings, empathetic

perceptions and impressions have influenced the workers more than

15
monitory benefits. In a work environment, workers do not like being

treated as puppets, blamed, belittled or bossed over. On the other hand,

managers or supervisors feel that they should ‘think’ and workers must

‘do’. The idea that the boss is always right still persists. The boss-

subordinate relationship creates stressful situations, hampering the

environment which is conducive to industrial relations. Human resource

management basically refers to a balanced interaction between these

two sets of expectation. The subordinates expect that the boss should

have integrity, higher performance skill, commitment, guidance and

accessibility, etc. On the other hand, the boss expects that his

subordinates should have a commitment for job, integrity, competency,

reliability, initiative, loyalty to the organization, self-discipline and a good

sense of accountability and involvement. Only an efficient personnel

manager can ensure industrial harmony between the management and

the employees. However, a healthy corporate philosophy ensuring

uniform policies at all levels of an organization is necessary for good

industrial relations.

In the present scenario, Indian organizations are experiencing a

transition. The new generations of MBAs are pouring into industrial

organizations. Young executives in their mid age of 30s are heading

human resource division in big companies. Moreover, due to the

unprecedented advancement in information technology, there is a

growing need to understand and manage the transition, and give a

16
direction to the change process. In order to achieve an effective

industrial peace, the Human Resource Management with Human

Resource Development, Industrial Relations and Organization

Development should be integrated. The Human Resource Management

strategies in India in the 21st century have to focus on better individual-

organization interface and greater emphasis on organizational

effectiveness than on personal success.

1.6 OBJECTIVES OF INDUSTRIAL RELATIONS

In industrial relations, the human values receive greater

recognition and it is felt that the economic progress should not be

measured only in terms of economic effects produced but also in terms

of social values created in society. It is only when workers form co-

partners in industry and both toil in the service of the society, that there

can be improvement in the total welfare of the society. As the Director

General of the International Labour Organization states, “In our

approach to industrial relations, the main emphasis should be on human

factor. The essential thing is to give men a sense of purpose in their

work. Only when men have this sense of purpose, only when they

understand how by their work they contribute to the well-being of the

society, can they have that confidence in their own true worth which is a

mark of freedom.” Thus the labour problem is approached on

humanitarian grounds in the modern industrial society.

17
 Maintenance of satisfactory industrial relations in sugar industry is

of paramount importance to a developing economy. In order to ensure

smooth and uninterrupted flow of production, harmonious, cordial and

peaceful industrial relations are essential. Mutual respect, confidence,

understanding and acceptance of responsibilities by both workers and

employers in the exercise of their rights and duties in the operations of

the plants ensures in return, security of employment, a high standard of

living and they leads to social progress.

Therefore, the objectives of the healthy industrial relations,

besides safeguarding the interest of the labour and management, are

the increase of production and efficiency of workers and promotion of

industrial growth in a country.

One of the objectives of healthy industrial relations in sugar mills

is to raise productivity to a higher level. This is possible only when all

other conditions also remain favourable e.g., Availability of materials,

power etc., Levels of productivity can be raised only. When there is a

sound infrastructure and also labour turnover and absenteeism are

controlled effectively. This condition is one of the important indicators of

good industrial relations. Besides this, encouraging labour participation

in managerial decisions through sound system of communication, and

recognizing the individuality of each laborer go a long way in

establishing healthy industrial relations.

18
 To sum up, maintenance of good human relationship is a sin-qua-

non for an organisation. In its absence the whole edifice of

organisational structure crumbles down. As the contented labour force

brings about outstanding results the management must ensure that the

employees attain their objectives. This is essential for running the

enterprise at its optimum level, through group satisfaction.

1.7 INDICATORS OF INDUSTRIAL RELATIONS

Industrial unrest is generally the result of the workers

discontentment in some form or other. Discontented workers represent

their grievances to their employers and when the employers are

reluctant to redress the grievances, the discontentment of the workers is

manifested through strikes or organised demonstrations. When the

grievances of the workers are not redressed for a longer period it

creates a situation of conflict. This hardening of the attitudes becomes

a prestige issue for both the parties and the situation eludes solution.

1.7.1 Indicators of poor industrial relations

• Where the unions believe that only strikes pay rewards;

• Where intra-union rivalries exist;

• Where the trend is for politicization of unions;

• Where the attitude of management is non-responsive and

indifferent to workers grievances;

19
 • Where the existing legal framework to solve the workers

problems is ineffective;

• Where there is no interaction between the management and

the union;

• Where wages do not keep pace with price increases; and

• Where there is communication gap between two conflicting

groups.

1.7.2 Indicators of healthy industrial relations

• Existence of one strong and responsible trade union without any

political ends;

• Existence of effective collective bargaining machinery. The two

conflicting groups acknowledge the equality of the status and desire for

quick settlement.

• Existence of job security accompanied by job satisfaction and

fulfillment of economic needs of the workers.

• Existence of uninterrupted production conditions in the units,

without strikes, lockouts or go-slow tactics which cause loss of man-

days.

• Existence of very low or negligible rate of labour absenteeism.

• Existence of high level of productivity.

20
1.8 MEANING OF THE KEY TERMS

Labour Welfare

Labour welfare is a comprehensive term including various

services benefits and facilities offered to employees by employer. The

labour welfare amenities are extended in addition to normal rewards

available to employees as per the legal provisions. Labour welfare

measures works for improving the health, safety, general well-being and

the efficiency of the workers beyond the minimum standards laid down

by labour legislation. Welfare measures may also be provided by the

government, trade unions and non-government agencies in addition to

the employer.

Industrial Relation

The term Industrial Relation means relationship between

management, supervisors, trade union and workmen in the private

sector sugar mills in Tamilnadu.

Employees

Employees refer to people working in the private sector sugar

mills in Tamilnadu either on permanent or on seasonal basis. It includes

officers, supervisors and workmen.

Monetary Benefits

21
 Monetary Benefits refers to wages, incentive, allowances,

compensation, insurance, bonus, etc given to the employees working in

the private sector sugar mills in Tamilnadu.

General Working Conditions

Working Conditions includes cleanliness, lighting and ventilation,

working hours, training to handle emergency situation, safety

equipments, etc provided to the employees working in the private sector

sugar mills in Tamilnadu.

Workers Participation in Management

Workers Participation in Management is one of the most

significant modes of resolving industrial conflict and encouraging

workers, a sense of belongingness to their establishments. The main

idea of workers participation is to increase employees’ influence in the

management by giving due recognition to human element in the private

sector sugar mills in Tamilnadu.

Employees Grievance Handling

The complaints affecting one or more individual workers working

in the private sector sugar mills in Tamilnadu with respect to their

payment of wages, overtime, leave, transfer, promotion, work

assignment and work environment would constitute “grievances”.

22
 Grievance Handling is a formal procedure, which enables the

parties involved and it is an attempt to investigate, discuss the problem

and resolve their differences in a peaceful, orderly and expeditious

manner, without interrupting the smooth conduct of business of the

private sector sugar mills in Tamilnadu.

Trade Union

Trade union refers to any association between employer and

employer, employee and employee and employer and employee formed

for the purpose of safeguarding their interest in the private sector sugar

mills in Tamilnadu.

Statutory Welfare Measures

Welfare Measures denote services, facilities and amenities which

may be provided outside or inside of the private sector sugar mills to

enable the employees working therein to perform their work in a healthy

and congenial surrounding.

1.9 PROGRESS OF SUGAR INDUSTRY IN INDIA

Introduction

Indian economy is an agrarian economy. 70 percent of the

descendants of this country rely on agriculture. Geographically the

Indian subcontinent desperate to the north of the equator and hence the

climatic conditions are conducive to sugarcane cultivation. The states

23
lying south of the Narmada River i.e., Maharashtra, Andhra Pradesh,

Karnataka and Tamilnadu are the best-suited area for sugarcane

growing. The number of growers of this crop is about 4 million. In the

cropping pattern of the country, sugarcane occupies 1.5 percent to 2

percent of the total cultivable area (Satheeskumar, 2009).

The History

The historical and mythological evidences clearly show that the

original home of sugarcane and sugar manufacturing is India. “The

soldiers of Alexander the Great who invaded India around 327 B.C.

were the first Europeans to see sugarcane in India. Though they took

sugarcane to Europe it was not actually cultivated there until 700 A.D.”

(Indian Sugar Year Book 1977-78). Evidently, sugarcane was prevalent

in India long before it was cultivated in Europe, and it was from India

that Europe came to know about sugarcane. However, the process of

making sugar was invented between the 4th and 6th centuries. About

600 A.D. Tsai-Hang, the Chinese Emperor sent a mission to Bihar to

understand the art of sugar manufacturing (Ibid p.1). It is evident from

these facts that the original home of sugarcane and sugar

manufacturing is India.

In the early days, the process of sugar manufacture was simple

and native in nature. Until 1932, the Indian sugar market was dominated

by Jawanesh sugar market and in the absence of home protective

24
measure, the Indian sugar-manufacturing scene did not show any

significant progress. The policy makers of the Government thought of

giving protection to the home industry and matter was referred to the

Tariff Board by rightly recognizing the growth potential of the sugar

manufacture in India. In 1934, the sugar industry protection act was

passed, whereby the indigenous sugar industry in India was granted

protection for an initial period of 14 years.

As expected, the effect of the discriminating protection policy on

the growth of sugar industry was tremendous. In fact, the adoption of

the discriminative protection policy marked the beginning of modern

sugar processing industry by direct vacuum pan method in India. Even

within three years after the adoption of discriminating protection policy,

the industry registered a phenomenal growth of the sugar factories to

the extent that the number of sugar factories increased from 32 units in

1931-32 to 454 units in 2006-07. During this period, the volume of

production also registered a substantial increase.

The rate of expansion constitutes almost a world record. At any

rate, if judged by the number of the productive units. The sugar industry

marks a tremendous growth in the history of Indian Industries (Indian

sugar year book et al 1977-78). However, the advent of modern sugar

producing industry by vacuum pan process in India started only with the

adoption of a policy of discriminative protection to the industry by the

Government of India in 1932 (Handbook of Sugar Information, 1981).

25
The industry was then started in regions like Uttar Pradesh and Bihar

where the sugarcane growing was organized. It was felt, as early as in

1934 that a minimum price should be assured to the cane growers who

supply the raw material, which constitutes nearly 70 percent of the cost

of production of sugar. A minimum cane price came to be fixed by the

Government under statutory norms.

In 1934, Union Government of India passed the sugarcane Act,

Section 3 of the act empowered the State Government to fix the

minimum price for the purchase of sugarcane intended for use in any

factory and also to regulate its purchase. Uttar Pradesh and Bihar were

the two State Governments fixing the minimum cane price every year till

the Central Government took over the control of sugar industry

(Development and Regulations) Act, 1951.

Indian Sugar Industry Scenario

India is the largest consumer of sugar in the world. Indian sugar

industry is the second largest agro-based processing industry after the

cotton textiles industry and has a lion’s share in accelerating

industrialization process and brings socio-economic changes in the rural

India. (Pandey, 2007). Currently there are 671 sugar mills operating in

different parts of the country (Indian Sugar Mills Association, 2012).

About 50 million sugarcane farmers are there and around 2 million

skilled and semi skilled workers are involved in ancillary activities such

26
as relating to transport, trade, servicing of machinery and supply of

agricultural inputs, mostly from the rural areas (Regulation of Sugar

Sector in India: The way forward, Oct, 2012). The industry not only

generates power for its own requirement but also surplus power for

export to the grid based on byproduct bagasse. It also produces

ethanol, an eco-friendly and renewable energy for blending with petrol.

(Satheeskumar and Selvaraj, 2007).

Today, Indian sugar industry’s annual output is worth

approximately Rs.80, 000 crores although it has the potential to grow at

double digits and double its worth to Rs.1, 60,000 crores over the next

five to ten years. The key to unlock this untapped potential lies in taking

the sugar sector from de-licensing to its logical conclusion of total

decontrol so that it can influence the expanding opportunities created by

the consistently rising demand for sugar and the emergence of

sugarcane as a source of renewable energy through ethanol and

cogeneration. Sugar industry needs to be freed from myriad restrictions

ranging from levy obligations, a regulated release system from non-levy

sugar, SAP, etc. The pricing of sugarcane, being critical has to be

based on a scientifically sound and transparent principle. A vibrant and

thriving sugar industry will be a catalyst for change in rural India

bringing in prosperity and contributing to energy security a ‘win-win’

situation for all stakeholders. (Report of the committee on Regulation of

Sugar Sector in India: The way forward, Oct, 2012).

27
 A major step to liberate the sugar sector from control was taken in

1998 when licensing requirements for new sugar mills was abolished.

Till 1997-1998, growth in sugar industry was at a much lower level and

took-off on a high growth trajectory in the post de-licensing period. From

1990-1991to 1997-1998 (pre de-licensing period) the sugar industry in

terms of installed capacity, grew at an annual average growth 3.3

percent, which more than doubled to 6.9 percent thereafter (1998-1999

to 2011-2012). And this high growth of sugar industry resulted from the

private sectors. The installed capacity in the private sectors grew at an

annual average rate of 11.2 percent in the post-delicensing period as

compared to only 4.8 percent earlier. In comparison, co-operative

sector’s capacity grew by only 2.7 percent in the pre-delicensing period

and 3.7 percent in the post-delicensing period. Public sectors’ capacity

growth has been negative at (-) 1.7 percent, even in the post-

delicensing period. (Directorate of sugar, Department of Food and

Public Distribution, 2011-2012).

Till 1997-1998, co-operative sugars dominated the sugar industry

with an installed capacity of 51.5 percent of total installed capacity in the

country, followed by the private sector (38.2 per cent) and public sector

(10.3 percent). In the year 2011-2012, the domination of co-operative

sector has changed significantly with the private sector contributing the

largest share of 63.3 percent of total installed capacity, followed by co-

operative (33.6 percent), with the public sector (3.2 percent) trailing well

28
behind. Normally, larger mills enjoy scale economies and greater

efficiency in sugar production. Based on an analysis of 84 sugar mills in

Maharashtra, it is found that there exist strong economies of scale in the

sugar industry, i.e., with increasing scale of operations, the cost of

conversion of sugarcane into sugar decreases substantially.

(Commission on Agricultural Cost and Price, 2011-2012).

Global sugar production for marketing season 2012/13 is forecast

at 174 metric tonnes (MMT) raw value, up by 2 percent from last year.

(United States - Department of Agriculture). Area under sugarcane has

risen from 39.29 lakh hectares in 1997-98 to 49.44 lakh hectares in

2010-2011. Over the same period, sugar production has increased from

279.59 million tonnes to 339.17 million tones. (Directorate of Economics

and Statistics, 2011-2012). In spite of the improvement in the production

of sugar over the years, this sector has not been nourished on sound

lines. The sugar sector consisting of sugarcane farmers, sugar industry

and the consumers continues to remain disillusioned with the vicious

circle of high production with low prices followed by low production with

improved prices. Policy initiatives of the government to insulate this

sector from fluctuations for stable growth is the crying need of the hour.

Production: Fortunately, for the first time-in recent history, when

the Indian sugar production is surplus over the domestic consumption

even for the second consecutive year after 2011, the international sugar

prices were still significantly higher to the Indian domestic ex-mill prices.

29
Therefore, there was a huge opportunity for the sugar industry and the

country as well, to be taped from a viable international sugar market.

There is clearly a market abroad for the surplus of over 40 lakhs tons of

Indian sugar (Sugar Exports in 2011-2012 sugar season). The

production of sugar obviously increases the global competitiveness of

the Indian sugar industry and as a result, India has emerged as a net

exporter of sugar over the last decade (Directorate General of

Commercial Intelligent and Statistics, Kolkata, Exports and Imports refer

to financial year, 2011-2012).

Consumption Trends: The sugar consumption has increased at

a rate of 4.14 percent over the last decade. The expected growth rate

for the next 3-4 years is 3 percent at a conservative estimate.

Demand-Supply Situation: India has gradually increased

production in line with demand. The consumption is increasing due to a

variety of reasons primary among them being explosion of population

and rising income levels.

Export and Import of Sugar: The production of sugar in India

has been volatile. For example, the production reached a peak of 28

million tonnes in 2006-07, falling to 15 million tonnes in 2008-09, and

estimated to have increased again to 25 million tonnes in 2011-12. It

tracks closely the production of sugarcane. The volume of imports and

exports remain small in relation to the overall production of sugar. The

30
import was 5 percent and export was 13 percent of total production in

2010-11. India is a net importer or exporter (measured by the difference

between the value of imports and exports) of sugar varies over time. For

example, it was a net importer in 2009-10, but a net exporter in 2010-

11.

Ethanol Production and Indian Scenario: The Government

approved mandatory 5 percent ethanol blending with petrol as a

National Program way back in October, 2007 and has suggested that

the ratio be further increased to 10 percent by October, 2008. If the

proposal is accepted, India would join a selected group of countries like

United States, Brazil and Japan, which are increasingly using

alternative non-fossil fuels in the transportation sector. For instance, in

Brazil, the mandatory ratio of ethanol with petrol is 24 percent while in

the US it is 10 percent. With 5 percent blending, 7-10 percent of oil bill

can be roughly saved and with 10 percent blending; about 15-20

percent can be saved. India imports nearly 70 percent of its annual

crude petroleum requirement, which is approximately 110 million

tonnes. The prices are in the range of US $ 50-70 per barrel, and the

expenditure on crude purchase is in the range of Rs.1600 billion per

year, affecting the country’s foreign exchange reserves in a big way

(Satheeskumar and Selvaraj, 2008).

In other words, at 5 percent ethanol blend level, the oil companies

are actually saving about one rupee on every litre of ethanol-blended

31
petrol in comparison to pure petrol. The saving of one rupee saving

could either be retained by Oil Manufacturing Companies (OMCs),

which will reduce Government subsidies to that extent or passed on to

the consumers by way of reduction in price of petrol. At 60 crore litres

and a saving of Rs. 20 per litre, the oil companies are clearly saving

Rs.1200 crore in one year. With the approval of final pricing of ethanol,

it is definite that more and more sugar factories and ethanol

manufacturers would be willing to supply additional ethanol to the

OMCs, which can go up to 100 crore litres for the 5 percent blending

program, from the present 60 crore litres per year. The supply of

additional ethanol will give them further savings of Rs.800 crore per

year and total savings of OMCs due to the 5 percent ethanol blending

program will go up to Rs.2000 crore.

Ethanol is a by-product from sugarcane, and hence renewable. It

is an environment-friendly fuel used now almost all over the world by all

the developed and developing countries in some proportion. Further,

ethanol is a very good oxygenate and because of its extra oxygen

molecules it helps the petrol portion of the blend to burn much cleaner,

reducing carbon monoxide in the exhaust and hence the overall

environmental pollution is caused from fossil fuel (Sugar India, Pulse of

Indian Sugar Industry, 2012).

The ethanol program is being implemented in a phased manner

in consultation and coordination with the State / Union territories

32
governments, Indian Sugar Mills Association (ISMA), the Ethanol

Manufacturers Association (EMA), All India Distilleries Association

(AIDA) and the Society for Indian Automobiles Manufacturers

Association (SIAM).

By Products

The Indian sugar industry crushes about 70-80 per cent of the

sugarcane for sugar production, with the remaining cane accounted for

by the production of local sweeteners (Khandsari and gur), seed, feed,

cane juice, chewing and waste. The by-products, such as molasses,

bagasse and press mud, are produced in the first stage of processing of

sugarcane. The markets for these by-products are tightly regulated so

that their true market value is not realized by the mills, leading to loss of

potential revenue.

I Molasses

Molasses are produced in the final stage of manufacture of sugar

by the vacuum pan process from sugarcane or gur. The production of

sugar and molasses is indicated in the Table 1.1 below. It has some

unrecoverable sugar, which is utilized to produce rectified spirit or

alcohol of 94.5 percent purity. Almost the entire quantity of alcohol in

the country is produced from sugarcane molasses.

33
Table 1.1 Production of Sugar and Molasses

Sugar Production Molasses Production

Year
(in lakh MT) (in lakh MT)

2006-07 283 131

2008-09 145 65

2009-10 189 84

2010-11 244 107

2011-12
260 115
(Estimated)

Source: ISMA Handbook of Sugar Statistics, and the Chemicals

and Alcohol Industries.

There is no control by the union government on production,

pricing and distribution of molasses. There is no price control on the

molasses in any state. However, the allocation and movement of

molasses is controlled by the State Excise authorities. Any quantity

exported or sold from sugar factory is recorded on a daily basis. Selling

of any molasses requires a permit, NOC from the State Excise

Department, against which any quantity can be sold or purchased. It is

obtained by the purchaser from the excise authority of the exporting

State. Export of molasses to other states is generally not allowed.

Tamilnadu has been banned in export of molasses.

34
 Sale of molasses is an important revenue stream for sugar mills.

Most state governments exercise control on its allocation and/or

movement. The sale of molasses places mills in a disadvantageous

position and distorts a market which has the potential to be truly

competitive and efficient. The committee is of the view that there should

be no quota imposed (quantitative restrictions) on the mills for sale of

molasses. All user industries, viz., potable alcohol, chemicals and

petroleum product industries should compete for molasses, and the

market should determine its price.

II Bagasses

Bagasse (Surpluses of requirement for boilers in the mill itself)

was traditionally, used in the paper industry, but is now largely being

used as fuel feedstock for cogeneration of electricity. As against a total

country-wide estimated potential of 5, 000 MW based on this feed stock,

about 2, 000 MW of capacity has already been created. Given the

capital costs involved, private sugar mills have accounted for the major

proportion, as many cooperative and public sector mills are in the red.

However, even the latter have begun developing their cogeneration

capacities through competitive bidding. At present, cost of generation is

about Rs.3 to Rs.3.50 per unit, where as preferential power tariffs set by

State Electricity Regulatory Commissions (SERCs) are in excess of

Rs.4.25 per unit. Thus, cogeneration is ecologically and financially a

viable proposition and is growing rapidly.

35
 Industry representatives have apprised that certain states, like

Tamilnadu and Karnataka, have invoked Electricity Act provisions that

empower state government to impose restrictions on sale of power, are

not allowing open access sale during the months of greater power

shortfall. The sale of power has been challenged in court.

III Press Mud

Press mud, is a solid waste by-product of the sugar industry. The

press mud is rich in organic compounds like nitrogen, phosphorus,

magnesium and potassium. The press mud is being utilized to produce

bio-compost by treating it with spent wash, a liquid waste from the

distillery, which is rich in potash, on a stack of press mud called

windrows. Over a cycle time of 40-50 days, spent wash mixed with

press mud gets compost and forms organic manure.

Cane Acreage in India

The Cane Acreage in India is given in the Table 1.2. The total

area under sugarcane in India has shown a progressive increase from

4411 thousand hectares in 2001 – 2002 to 4944 thousand hectares in

2010 – 2011.

36
Table 1.2 Cane Acreage in India

Sl. No. Year Cane Acreage (1000 Hectares.)

1. 2001 – 2002 4411

2. 2002 – 2003 4520

3. 2003 – 2004 3938

4. 2004 – 2005 3662

5. 2005 – 2006 4201

6. 2006 – 2007 5151

7. 2007 – 2008 5055

8. 2008 – 2009 4415

9. 2009 – 2010 4175

10. 2010 – 2011 4944

Source: Sugar India Year Book, 2012 p.83

Yield of Cane in India

The yield depends on type of seed, extent of ratoon crop, weather

conditions, soil conditions, availability of water, pest and disease

control.

37
Table 1.3 Yield of Cane in India

Sl. No. Year Yield of Cane (Per Hect./M.T.)

1. 2001 – 2002 67.4

2. 2002 – 2003 63.6

3. 2003 – 2004 59.4

4. 2004 – 2005 64.8

5. 2005 – 2006 66.9

6. 2006 – 2007 69.0

7. 2007 – 2008 68.9

8. 2008 – 2009 64.6

9. 2009 – 2010 70.0

10. 2010 – 2011 68.6

Source: Sugar India Year Book, 2012 p.83

The Table 1.3 shows the yield of cane in India. In 2001 – 2002

the yield of sugarcane is 67.4 per hect./M.T. It has decreased in the

following years still 2008 – 2009 and in 2010 – 2011 because of the

variety of seeds, lack of rainfall, less number of skilled labourers etc.

The sugarcane production has increased by 2.6 percent in the year

2009 – 2010.

38
Sugar Production from sugarcane in India

The sugar production from sugarcane in India is given in the

Table 1.7. The sugar production has been improving due to

modernization of facilities and better seeds and fertilizers. The mills,

which focus on the future, enable the farmers to obtain suitable aids to

agriculture which results in increase from 18528 thousand M.T. in 2001

– 2002 to 24394 thousand M.T. in 2010 – 2011.

Table 1.4 Sugar Production from sugarcane in India

Sl. No. Year Sugar Production (1000 M.T.)

1. 2001 – 2002 18528

2. 2002 – 2003 20145

3. 2003 – 2004 13546

4. 2004 – 2005 12690

5. 2005 – 2006 19267

6. 2006 – 2007 28367

7. 2007 – 2008 26357

8. 2008 – 2009 14539

9. 2009 – 2010 18912

10. 2010 – 2011 24394

Source: Sugar India Year Book, 2012 p.83

39
1.10 PROGRESS OF SUGAR INDUSTRY IN TAMILNADU

Cane Acreage in Tamilnadu

Tamilnadu is one of the leading states of the Indian country in

sugar production. The major determinant of its development is the

phenomenal growth of the agricultural sector which is confined only to

three commercial crops viz., paddy, sugarcane and cotton. The

cultivation of sugarcane has made enormous progress in Tamilnadu in

the recent years because of the growth of sugarcane industry under

state protection; sugarcane is cultivated in about 10 percent of the gross

cultivated area. The soil in Tamilnadu is conducive to the growth of

sugarcane and it has a unique feature of sub-soil drainage, which is

helpful to sugarcane cultivation. The favourable climatic conditions

coupled with adoption of modern methods of cultivation, hard work by

farmers and development efforts by the sugar factories – all these have

resulted in a faster growth of sugar industry in Tamilnadu. The sugar

factories have taken up soil surveys, irrigation schemes, and road

construction within their area of operation for the benefits of members.

Sugar industry is the foremost agro-based rural industry providing direct

employment to 0.50 lakh people. Besides about 25 lakh people are

indirectly connected with this industry in the state.

The total area under sugarcane cultivation depends on rationing:

The extent of ratoon crop is one of the determinants of the overall area

40
under sugarcane cultivation. Although farmers realize a lower yield in

ratoon crop as compared with a plant crop, they prefer to grow another

sugarcane crop rather than switch to alternative crops due to lower

costs of a ratoon crop. The cultivation has been influenced by many

factors like climatic condition, payment of remunerative prices,

subsidies provided, fertilizers and pesticide and for harvesting and

transportation of sugarcane favourably.

Table 1.5 Cane Acreage in Tamilnadu

Sl. No. Year Cane Acreage (1000 Hectares)

1. 2001 – 2002 326

2. 2002 – 2003 284

3. 2003 – 2004 192

4. 2004 – 2005 232

5. 2005 – 2006 336

6. 2006 – 2007 391

7. 2007 – 2008 352

8. 2008 – 2009 309

9. 2009 – 2010 293

10. 2010 – 2011 336

Source: Sugar India Year Book, 2012, p.83

41
Therefore, it is understood from the Table 1.5 that the total area under

sugarcane cultivation has, shown a progressive increase from 326

thousand hectares in 2001 – 2002 to 336 thousand hectares in 2010 –

2011.

Yield of Cane in Tamilnadu

The overall sugarcane yield depends on the quality and treatment

of seeds. Different varieties of seeds have different yielding potential. A

lot of research is going on in India in search of new varieties of cane to

maximize the yield per hectare. The growth period for sugarcane, from

planting to maturity, ranges from 1 to 2 years based on the variety. The

growth period of sugarcane is important as harvesting has to be

synchronized with the ripening of the sugarcane crop, when the sucrose

content is the maximum. One of the most critical factors in the

production of sugarcane is temperature. The minimum mean air

temperature for active growth is 200 C, depending on the seed variety

used; the average temperature may vary between 20o C and 400 C.

The length of the period when the temperatures are significantly below

200 C influences both the growing season and ripening period.

Sunshine is another factor in growing sugarcane as the photosynthesis

rate of the sugarcane plant is affected by the natural light intensity.

Sugarcane is a highly versatile crop that can be grown under a wide

range of soil conditions. However, sandy, loamy soil is ideal for the

crop. Physical factors such as porosity, depth, bulk density, permeability

42
and moisture retention are more important than the chemical properties

for successful production; but the physical properties cannot be easily

modified.

Table 1.6 Yield of Cane in Tamilnadu

Sl. No. Year Yield of Cane (tones per Hectares)

1. 2001 – 2002 101.6

2. 2002 – 2003 106.8

3. 2003 – 2004 91.9

4. 2004 – 2005 100.8

5. 2005 – 2006 104.7

6. 2006 – 2007 105.1

7. 2007 – 2008 107.5

8. 2008 – 2009 106.2

9. 2009 – 2010 101.5

10. 2010 – 2011 102.0

11. 2011 – 2012 105.0

Source: Sugar India Year Book, 2012, p.84

The Table 1.6 reveals that, yield of cane as 101.6 per Hect./M.T.

in 2001 – 2002, it is increased to 105.0 per Hect./M.T. in 2010 – 2011.

43
Sugar Production in Tamilnadu

Sugarcane is an important commercial crop in India. It is

cultivated in about 4.5 million hectares of area with an annual

production of about 300 million tonnes of sugarcane (Satheeskumar, et

al, 2009). About 50 million farmers are dependent on sugarcane

cultivation for their livelihood and in addition, roughly an equal number

of agricultural labourers earn their living by working for cultivation and

management of sugarcane crop.

Table 1.7 Sugar productions in Tamilnadu

Sl. No. Year Sugar Production (1000 Hectares)

1. 2001 – 2002 326

2. 2002 – 2003 242

3. 2003 – 2004 941

4. 2004 – 2005 1126

5. 2005 – 2006 2170

6. 2006 – 2007 2599

7. 2007 – 2008 2192

8. 2008 – 2009 1614

9. 2009 – 2010 1299

10. 2010 – 2011 1893

Source: Sugar India Year Book, 2012, p.86

44
 Sugarcane is the primary raw material for all the sugar mills as

well as cottage industries like Gur (Jaggery) and Khandasari industries

in India. About 4 lakhs of people have been employed directly as well as

indirectly in the sugar mills.

The sugarcane produced in India has been shown an increase

from 326 thousand tonnes in 2001 – 2002 to 1893 thousand tonnes in

2010 – 2011. During the year 2002 – 2003 sugarcane production fell

down to 242 thousand tonnes.

Table 1.8 Sugar factories in operation in Tamilnadu

Sl. No. Year Number of Sugar Factories in Operation

1. 2001 – 2002 38

2. 2002 – 2003 37

3. 2003 – 2004 35

4. 2004 – 2005 35

5. 2005 – 2006 36

6. 2006 – 2007 39

7. 2007 – 2008 39

8. 2008 – 2009 38

9. 2009 – 2010 42

10. 2010 – 2011 46

Source: Sugar India Year Book, 2012

45
 It is evident from the Table 1.8 that, there is a nominal increase in

the sugar factories from 38 in the year 2001 – 2002 to 46 in 2010 –

2011, of which the number of private sugar mills is 27 in 2010 –

2011.

1.11 RATIONALE OF THE STUDY

The problem of industrial relations is equally serious in public

sector and private sector undertakings in India. Though the public

sector is expected to play the role of a model employer and influence

industrial relations in the country, it is generally believed that public

enterprises themselves are crippled with the problem of bad industrial

relations.

Tamilnadu contributes 7% of the countries total sugar production.

There are 46 sugar mills in Tamilnadu including three Public sector

mills. Tamilnadu Sugar Corporation Ltd (TASCO) was incorporated in

1974 with two mills and M/s Perambalur Sugar mills ltd, Eraiyur,

Perambalur District was established in 1976 as a subsidiary to TASCO

ltd.

M/s Perambalur Sugar mills ltd, Eraiyur is the only public

sector organization in Perambalur District. This was believed to

generate employment and help boost the economy of the district.

However, the performance does not seem to grow with the Capacity

46
Utilization is only 58 % in the year 2010 – 11. The loss in the same year

is around 9 crores compared to a profit of five crores in the previous

year. Total number of employees has also gone down from 900 to 573.

The fall in the profit and the fall in the employees have motivated

the researcher to undertake the study. As the downward trend is

suspected to be due to non-prevalence of a healthy Industrial relations,

this study is taken up.

Industrial relations occupy a significant place in the management

of the modern industry and business. The problem of establishing amity,

mutual understanding, harmony and cordial and peaceful relations

between labour and management has become more and more

important. Workers in allied industries are excluded from preview of this

research study. For example, manufacture of potable spirit, power

alcohol, confectionary etc. Farm workers working on the farm are also

excluded from the purview of this research study, in order to maintain

some sort of uniformity, consistency and acceptable criteria for the

research work.

47
1.12 SUMMARY

The geographical condition of India is more suitable for

sugarcane cultivation. It absorbs an area of 1.5 percent to 2 percent of

the cultivable area (Satheeskumar, et al. 2009). Sugar is the chief

driving force for the new economy of the poor. Sugar industry is the

second major industry that accounts nearly 8 percent of industrial

investment and provides employment to about 7 percent of the

industrial working force. There are 671 sugar mills in India and 157

sugar mills located in Uttar Pradesh alone. There are 46 sugar

production units in Tamilnadu of which 27 are in the private sector in

2010 – 2011. The sugar production has been increased from 18,528

M.T. in 2001 – 2002 to 24,394 M.T. in 2010 – 2011.

48
 CHAPTER II

REVIEW OF LITERATURE

A lot of research studies on labour welfare and industrial

relations have been carried out by researchers, to find out whether

certain characteristics are common to all and could be observed in units

as having good industrial relations against those with chronic conflict.

Labour welfare measures and industrial relations in public sector sugar

mills have also become subject of scientific studies. An attempt is made

here to review the previous studies in the area of workers participation

in management, labour welfare measures such as monetary benefits,

general working conditions, employees grievance handling, trade union,

statutory welfare measures and industrial relations in the different

headings.

2.1 WORKERS PARTICIPATION IN MANAGEMENT

Kaufman (2009), revealed that social auditing is growing

within the corporate social responsibility movement. On the one hand,

the social audit is a means of attesting corporate observance with

voluntary labour standards. On the other hand, it could become a

means of legitimizing questionable labour management practices in

supply-chain relationships. Social audits are conducted in a wide range

of industries, but the largest number of audits is imposed on apparel

49
and shoe manufacturers-suppliers. The number and frequency of audits

does not necessarily ensure humane working conditions, or workers

empowerment. Here the impact of the garment industry’s voluntary

labour standards on the workforce in developing countries is critically

evaluated. It is proposed that worker-oriented participatory framework

that reshapes labour standards by eliciting and integrating labour’s

voice into existing voluntary standards. Hence the discussion uses

social audit as a vehicle to demonstrate the implications of

Schumacher’s concept of the right livelihood on management control

systems.

Discipline and disciplinary actions are also crucial aspects of

internal employee relations (Mondy and Noe, 2006).

Kannappa (2005), in his dissertation, has depicted that the

success of management practices lies in empowering employees in the

organization. The employees should be trustworthy and should be

ready to serve the organization best with all their potentials. Teamwork

thought may be encouraged. If the modern human resource concepts

are taken into account by the management, personnel management

practices will grow to excellence with full labour satisfaction.

Black and Lynch et al. (2004) found that employee voice has

a larger positive effect on productivity if made in the context of

unionized establishments.

50
 As suggested by Brown (2004), the range of issues over

which bargaining takes place has narrowed in the last 20 years, but at

the same time the scope of collective bargaining had rarely gone

beyond pay and hours. Irrespective of the level of which bargaining

takes place, a central goal is to reach compromises and agree upon

rules for facilitating conflict resolution.

Panda (2004), study aimed at examining the relationship

between the industrial relations environment and work culture in a

private and a public sector organization belonging to the same industry.

The result of the study revealed that either a private sector or public

sector organization the industrial relations were mainly depending upon

both monetary benefits and non-monetary benefits provided to the

workers.

Mathan (2004), in his research pointed out that the industrial

relation is not a one sided game but depends on the reciprocal

understanding, faith and goodwill of all employees in industrial relations

system. Good and harmonious relations require active participation and

proper communication channels if not it leads to strikes, lockout,

absenteeism, indiscipline and even brutality.

Singh (2005), in his article, has avowed that, human resource

concepts that get packaged along with modern managerial philosophy

51
are likely to revolutionize the work place. The bottom line people want to

be cared of and respected.

Employee suggestion scheme can be described as a

formalized mechanism which motivates employees to contribute

constructive ideas for improving the organization in which they work.

Implemented ideas are pleased by a monetary award or some other

form of recognition – usually proportionate to the benefits generated. It

creates a climate of trust and confidence, job satisfaction and

continuous improvement in the company (Yusof and Aspinwall 2000).

According to Shapiro (2000), organizations are giving efforts

to involve employees to different degrees by which staff members are

encouraged, enabled and empowered to contribute towards goal

attainment. Employee empowerment is more relevant in today’s

competitive environment where knowledge workers are more prevalent

(Wimalasiri and Kouzmin, 2000; Jarrar and Zairi, 2002).

It can encourage employees to be creative and to take risks,

which are key components that can give a firm a competitive edge in a

fast-changing environment (Hymowitz, 2000).

Gollbach and Schulten (2000), instated in their article that, in

recent years European trade unions have launched various initiatives for

closer European coordination of collective bargaining, in order to

52
prevent downward competition on wages and working conditions within

the new macroeconomic framework of European Monetary Union

(EMU). This article gives an outlay of strategies and experiences to date

within the European Metalworkers' Federation (EMF). The main focus of

the analysis is on the attempt to establish interregional cross-border

collective bargaining networks between national or regional

organizations of EMF affiliates. The article summaries that the new

structure interregional cross-border collective bargaining has the

potential to create a new institutional and political basis for an

‘Europeanization’ of day-to-day collective bargaining at local level.

Employee involvement is one such example, where problem solving

groups (Guest 2000; Ichniowski, Shaw, and Prennushi et al. 1997;

Osterman 2000). Total Quality Management (Osterman 2000) and

profit sharing (Guest 2000; Huselid et al. 1995; Ichniowski, Shaw

and Prennushi et al. 1997; Michie and Sheehan 1999) are seen as

representing ‘communication’.

Industrial relations environment has been assessed in terms of

structural mechanisms for industrial relations management, trade

unions and collective bargaining, workers participation in management

and union management relationship. Effort has also been made to

identify major industrial relation issues and organizational initiatives for

betterment in the industrial relations environment. From the findings of

the study of workers participation in management the industrial relation

53
system is largely governed by legal and administrative framework, in the

organizations is quite clear. In the emerging market driven economy

union management relationship will need to be managed within the

framework of norms developed and mutually agreed upon by the

organizations.

The main idea of workers participation in the management is

to increase employees’ influence in the management by giving due

recognition to human element in the organization. The concept of

workers’ participation is an attempt on the part of the employer to build

his employees into a team which works towards the realization of

common objectives. (Kesari 1998).

According to Johnson and Redmond’s (1998) opinions that

employee involvement was operationalised through a process of five

essential steps like informing, consulting, sharing, delegating and

empowering.

Another study that found many of the same issues as those

proposed here, but through different theoretical frameworks, also

attempted to ascertain what drives the formation of employee attitudes.

In a study of a single site in which approximately 25% of the employees

were active in a particular group, the instigator found that certain

54
situational and personality factors were significant in their relationship

with attitudes towards participation (Kaminski 1993).

In replacing unilateral decision-making by the employer,

bargaining has introduced an element of industrial democracy into the

workplace (Cordova, 1990; Traxler 1991). Introductory work in this

area has examined both situational and dispositional variables in a

model of affect towards employee participation programs (Graham &

Verma 1991).

According to Balakrishnan’s (1990), in his dissertation with

the objective of study is to find out the relationship of personal, job

satisfaction variables and trade union with militancy of workers, to find

out the determinants of job satisfaction of workers and to find out

determinants of membership and participation of workers in trade union.

The finding of the study revealed that the most common factors

responsible for strikes namely economic factors (Quantum of Bonus)

and Non economic factors (Delay of Grievance Settlement). The

significant factors responsible for Ghero participation namely wages,

welfare facilities, supervisory behaviour and trade union membership

and participation. The determinants of job satisfaction namely wage,

working conditions and welfare facilities are significantly related.

55
 The most crucial factors of union participation namely skill,

working conditions, supervisory behaviour and membership status. The

study suggested that the collective bargaining and conciliation were

followed for settlement of disputes. Analysis implies the need for an

interdisciplinary approach to study of Industrial Relations. The policy

should tackle inter union rivalry, multiplicity of unions, poor quality

leadership, political interference in union affairs, lack of general and

spontaneous involvement in union activities, absence of effective

means of workers participation in decision making.

The magnitude of employee participation in more modern

types of industrial relation is underscored by its link to job security and

job flexibility. In the contexts of both the ‘North’ and ‘South’ global

geographical regions increasing decentralization of decision making and

increasing job flexibility is discernable in workplace practices. The need

for job flexibility has many drives one of which is that workers might be

fearful of making productivity related suggestions because the

implementation of such changes could lead to the loss of their won job

(Aoki, 1988).

Collective bargaining is a process of decision making between

parties representing employer and employee interests which implies the

“negotiation and continuous application of an agreed set of rules to

govern the substantive and procedural terms of the employment

56
relationship” (Windmuller 1987). Another study that incorporated the

concept, wanted to scrutinize the general predisposition toward

participation (Verma and Mckersie 1987). Verma and Mckersie found

that self-selection for voluntary participation programs was affected by

this desire.

Raju (1985), in his study has revealed productivity as the

degree of effective utilization of each of the major factors of production

viz., land, capital, labour and organization. He feels that productivity of

an organization depends on the state that human resources are the

most important of all resources. Notwithstanding excellent machines,

technology and a layout provided in an enterprise, the man behind the

machine matters the most. His motivation, morale and creative culture

could make all the difference between success and failure of the

enterprise. Therefore, the author has insisted, that the management

should develop a climate of trust and concern for the men in the

organization: where there is no trust, employees would take no

worthwhile initiatives. Teamwork and harmonious industrial relations are

essential for excellence in performance.

Ghose (1983), in his article has attempted a study in different

countries including India. In the light of these experiments, the author

has identified the problem areas and the role of participative

management in the productivity improvement. He has stressed that the

57
participative management may be an effective approach for raising the

level of productivity, provided certain pre-conditions are fulfilled and the

problems are sought to be encountered seriously. For that, of course,

the scheme should be meaningful and significant in coverage to make

the workers interested in participation and the management also must

be ready in spirit to involve the workers in the process of decision

making for improving labour productivity.

Rao (1983), has highlighted, the principle of employee

participation in management provides a means of self-identification and

self-realization in work, emotional and other psychological needs of men

and women at work, by eliminating any feeling of futility, isolation and

the consequent frustrations that they have to face in a normal industrial

setting. This can be achieved by satisfying their social and

psychological needs, besides economic ones. Workers participation in

management is one of the most noteworthy modes of resolving

industrial conflicts and encouraging among workers, a sense of

belongingness to their establishments. Workers participation in

management is an extension of the political process to work place

relations.

Westley, William and Margaret (1971) suggested that in poor

countries, which employ poorly educated unskilled, the workforce’s

interest in participation programs would be low because workers

58
struggle for survival and will not be attracted by programs that offer

mainly social and psychological rewards.

Blumbergy (1968) cited rich evidence to support the idea that

work dissatisfaction can be reduced by worker participation whatever

the context.

In his article, Virmani (1955) has found out that the Indian

industrial system has all along been adversarial with collective

bargaining approach being its main stay. Over the past few years, a

relationship based on collective bargaining and principles of

participation has emerged. A discussion of the major findings of an in-

depth study of eight organizations where both practices were present

lends support to the author’s contention that collective bargaining and

participation need different attitudes and hence cannot co-exist. In any

new model of industrial relations the adversarial approach and collective

bargaining must give way to participative structure and the development

of the institution.

According to the report given by The Royal Commission on

Labour (1929-31) if work committees are given proper encouragement

and the past errors are avoided they can play a useful role in the Indian

industrial system. The management should give an opportunity for the

59
workers to part in the various decision making process and the workers

should rightly use the given chance to exhibit their potential.

2.2 COMMUNICATION PROCESS

First identified in the 1940s, systems theory achieves insights into

communication (Heath & Bryant, 2000). Especially influential on

organizational communication, systems theory explains how and why

people form groups, each of which is a system as well as part of a

larger system. Its focus is on the whole system rather than on its parts,

and how these parts interact to affect the whole system.

Infante, Rancer and Womack (1997) define a system as

hierarchical — a set of interdependent units working together to adapt

to a changing environment. It can be divided into smaller subsystems or

incorporated with other systems to create larger systems, referred to as

suprasystems or environments (Heath & Bryant, 2000). A systems

approach to organizational communication expands the basic model of

sender-receiver to feature communication networks; this explains how

systems adapt to their environments (Heath & Bryant, 2000).

As previously stated, PA is composed of three basic subsystems:

internal information, media and community relations. Although the

military mainly uses each subsystem interdependently, the entire

system is much more than the sum of the contributions of each

60
individual part. As Infante, Rancer and Womack explain it, “every

system is like a cake in the sense that if you take away or change one

individual part, the entire system is affected” (1997, p. 91). The focus of

organizational communication is on the whole system, rather than on

parts of the system (Katz & Kahn, 1996).

Communication systems, such as public affairs, are “open”

systems — they interact with their environments. Open systems

“continually take in new information, transform that information and give

information back to the environment” (Shockley-Zalabak, 1999, p. 43).

By contrast, “closed” systems are characterized by a lack of input

communication, making it difficult to make good decisions and stay

current with the needs of the environment (Shockley-Zalabak, 1999).

Closed systems lean toward entropy, chaos or total disorganization

(Infante, Rancer & Womack, 1997). Applying the open systems

approach to military PA requires a purposeful sensing of the

environment to anticipate and detect changes that affect the

organization’s relationships with its publics (Cutlip, Center & Broom,

1985). Ultimately, the systems approach should serve as the foundation

for a more effective management practice.

2.2.1 Development of Organizational Communication

“Communication serves as the basis for control and coordination

in organizations; it also provides information essential to effective

61
completion of the organizational mission” (Poole, 1978, p. 493). But,

what “exactly” is communication? In layman’s terms, communication is

the interchange of information between two or more persons. Farace,

Monge and Russell (1977) define communication as the exchange of

symbols that are commonly shared by the individuals involved, and

which evoke quite similar symbol-referent relationships in each

individual. Organizational communication goes a bit further.

Organizational communication is “both similar to and distinct from other

types of communication” (Shockley-Zalabak, 1999, p. 28). It is more

than the daily interactions of individuals within organizations, it is the

process through which organizations create and shape events

(Shockley-Zalabak, 1999).

The study of organizational communication centers on processes

of interaction means by which people obtain information, form opinions,

make decisions, merge into the organization, leave the organization and

create rapport with one another (Shockley-Zalabak, 1999). Through

communication, people coordinate their actions to achieve individual

and organizational goals (Shockley-Zalabak, 1999). Effective

organizational communication within the PA arena is critical. The

public’s perception of credibility and validity of any PA office depends

largely on the successful transmission of verbal and nonverbal

messages and the sharing of information at all links (subsystems)

through the organization’s channels.

62
 According to Huse and Bowditch (1973), an organization is

effective and efficient when it has the ability to be integrated and to

consider three different perspectives simultaneously: structural design,

flow and human factors. Looking into this further, a literature review by

Campbell (1977) found that more than 30 different criteria were used

for the measurement of organizational effectiveness (Praeger, 1986).

These measurement criteria ranged from specific aspects of

organizational effectiveness to a global view. Campbell’s (1977) review

also finds some of the measurement criteria to be inconsistent, in that

few studies used multivariate measures of effectiveness and the same

criteria were rarely used across studies (Praeger, 1986).

Herein lies the basic theme of this paper, suggesting that military

PA organizations, in an effort to gain greater efficiency, should attempt

to both integrate and simultaneously consider its three subsystems

(internal information, media and community relations) as well as best

practices in the civilian corporate PR arena, when approaching

organizational issues.

2.2.2 Cross-functionality

Cross-functionality is the idea that members from different

departments of a unit or organization form teams, bringing a variety of

talents and resources to bear on the accomplishment of the overall

mission of the unit or organization (Proehl, 1997). This method has

63
proven positive results within AT&T and Hewlett Packard (Jayaram &

Ahire, 1998). It also has application to PA in two ways: 1) Cross-

functionality can be applied to the relationship between PA and other

organizations within a command; and 2) it can be applied within the PA

organization itself — this is the idea behind the three-pronged

approach.

Cross-functional teams consist of people who serve in different

departments or perform different functions within the organization

(Wellins, et al., 1994). Some companies establish permanent and

temporary cross-functional teams. The permanent teams work on

issues companies face on a routine basis, while temporary teams are

formed to handle special projects such as implementing new

procedures, reorganizing procedures and processes, or solving

unexpected problems.

By their nature, cross-functional teams offer members

opportunities to receive training and experience outside their areas of

expertise in order to meet the goals of the team (Wellins, et al., 1994).

This has several benefits including team flexibility, understanding

among the functional areas of how the others work, and an increased

sense of ownership and pride among team members.

64
Applications for Public Affairs at the Command Level

Previous studies suggest the idea that marketing is here to stay

and that successful companies must integrate marketing departments

into their strategic planning or suffer for it in their profit margins

(Shipley, 1994). The difficulty is successfully integrating marketing, or

in the military’s case public affairs, into a strategic operational role after

having been a support function for so long. Many people within

organizations have preconceived notions about the value of marketing

or PA, and based on outdated ideas that do not consider the important

role they play in the overall mission accomplishment; resist their

inclusion into the upper echelons. Shipley suggests a number of ways

to combat this: 1) It is essential that the role of PA be thoroughly

understood and communicated to all levels by the commander. 2)

Commanders should ensure their PA officers are “politically shrewd,

experienced, tough and able” (Shipley, 1994, p. 20). 3) Training should

be offered to all department heads and essential personnel with the

goal of altering false perceptions. 4) Commanders should build internal

motivation within the command. PA practitioners need to understand

that achieving a shift in mindset like this is extremely difficult. With that

in mind, practitioners need to do all they can to fit in. Some suggestions

include “building a professional image for [public affairs]; ensure

frequent communication and personal interaction with other

departments; do not laud the importance of [public affairs]; recognize

65
the equal importance of other [departments]; acknowledge their

viewpoints, strengths and constraints; build allies and tight relationships;

be tactful, amicable and harmonious; go to “war” as a last resort; involve

top management in disputes as a last option; be unselfish about the

‘ownership’ of good ideas; use finance and other resources wisely; and

always stress the commonsense view” (Shipley, 1994, p. 20).

Cross-Functionality Applications for Public Affairs at the Office

Level

Many of the theories used in developing cross-functional teams

find their origins in small group organizational communication theories.

A model that has utility for cross-functional application in PA, both at the

organizational and departmental levels, is discussed by Tjosvold

(1991).

In this model there are two inputs:

1. The composition and structure of the group and

2. The resources and structure of the organization

The inputs work together forming the group process. The process

interacts with the task to determine the group’s effectiveness. Using

those inputs, the group develops a process to work together, and then

applies that process to whatever tasking comes down the road. The

nature of the tasking and its interaction with the group’s processes

66
determines the effectiveness of the group’s output. Gladstein’s Model of

Group Behavior explains how the PA three-pronged approach can be

more effective

Public Relations Theory

Public relations is the attempt by information, persuasion and

adjustment to engineer public support for an activity, cause, movement

or institution (Bernays, 1955). The field borrows theories of

communication from the social science disciplines; however, there is no

one theory that is PR. The field also lacks a sense of identity, failing to

define its purpose, scope and dimension (Leeper & Leeper, 2001).

There appears to be a widely held definition that PR is “the manipulation

of public behavior for the benefit of the manipulated publics as well as

the sponsoring organizations” (Grunig, 1989, p. 18 – 19). Grunig’s

(1989) research explains PR using four models. Grunig calls them

67
“press agentry/publicity,” “public information,” “two-way asymmetrical”

and “two-way symmetrical” (Grunig, 1989, p. 29). According to Grunig

(1989), the four models are representative of the goals, values and

behaviors held or used by an organization when practicing PR.

2.3 WELFARE MEASURES

Kannan (2005), labour relations increasingly became formal,

impersonal and contractual. The labour relations retained the basic

characteristic of stratification and segmentation embedded in the

traditional social order. The former relates to the hierarchy of

occupations depending on the nature of the job, earnings and security

and the latter would refer to the boundaries existing within a given

stratum of the labour market.

KCP limited is always ahead in improving the working and

living conditions of its employees and it has done a lot in respect of

providing welfare measures for its employees in the areas of Education,

Medical, Housing, Transport, Sports, Recreational facilities, etc.

The study is undertaken to know the satisfaction levels of

employees about labour welfare measures in KCP limited (Cement

Division). The convenience random sampling method is adopted to

carry out the study by the researcher. Out of 925 employees, 90 are

selected covering almost all the departments. A questionnaire is used

68
for present study to know the opinions of the employees on each

statement. The results of the research reveal that majority of the

employees are satisfied with all the welfare measures provided by the

organization. Effectiveness of Labour Welfare Measures; i. Enable

workers to live a richer and a more satisfactory life, ii. Contribute to the

productivity of labour and efficiency of the enterprise and iii. Enhance

the standard of living of workers by indirectly reducing the burden on

their purse.

Mookherjee (2012), in consonance with the corporate

objective of keeping employees happy so that they can put their heart

and soul into the work assigned to them, the Tiruchi Unit has evolved a

widespread welfare program. Important among them are subsidized

canteen facilities, medical facilities including occupational health

services, education facilities for the children of employees, transport

facilities for carrying employees to and from the factory, group

insurance scheme, and conveyance allowance to the physically

handicapped employees, Level Travel Concession, Leave Encashment

and township facilities with provision for recreation, sports and cultural

activities. In addition, statutory benefits such as gratuity, provident fund,

family pension, profit sharing schemes and a plant performance bonus

scheme form part of the fringe benefits extended to the employee. An

average expenditure of Rs.1, 150 per month for employee is said to

have been incurred by the Tiruchi Unit.

69
 Mishra and Bhagat (2010), in their research article, stated

that labour absenteeism in Indian industries can be reduced to a great

extent by providing good housing, health and family care, canteen,

educational and training facilities and provision of welfare activities. The

principle for successful implementation of labour welfare activities is

nothing but an extension of democratic values in an industrialized

society.

Sarkar and Varkkey (2008), Firstly, Tata Steel’s human

resource management policy is very sound and progressive including

that Tata Steel was the first to introduce various employee welfare

schemes in India much ahead of introduction of the same by

Government of India as legally.

In the view of Chaudhuri, (2007), study, HR policy was being

made flexible. From leaves to compensations, perks to office facilities,

many companies are willing to customize policies to suit different

employee segments. The older employees want social security benefits,

younger employees want cash in hand because they can’t think of

sticking to a company for many years and retire from the same

company. Therefore, one jacket fits all “will not be right to motivate the

talents and retain them”

Reddy (2005) in his article has stated that among the species,

human being is the finest one who needs skills, talent, aptitude,

70
motivation to deliver goods and service time with quality. Labour is

highly perishable which needs constant training for upgradation of

information. If manpower is utilized optimally, certainly the Nation-State

grows rapidly. In every employee / citizen the habit of imbibing learning

curve is to be naturalized.

Stout and Linn (2002), the twentieth century witnessed

remarkable reductions in the number and rate of occupational fatalities

and injuries. However, many preventable injuries and deaths still occur.

Barriers to progress in occupational injury prevention are discussed,

along with strategies for overcoming them. In mining, the frequency of

death has dramatically declined over the century. The latest figures

from the BLS indicate that less than 6000 worker deaths from injury

occurred in 2000. Catastrophic events have promoted attention,

resources, and action on workplace hazards and risks, resulting in

sweeping changes, including new protective laws. Science based

approaches to prevention have contributed to progress. Multidisciplinary

collaboration among injury prevention researchers, and collaboration

and cooperation among multiple sectors, has improved the relevance

and application of injury prevention research and development. Barriers

to further progress include lack of evaluation of the effectiveness of

prevention strategies and technologies, including cost effectiveness,

lack of widespread implementation of knowledge, effective prevention,

and lack of efficient transfer and implementation of prevention of

71
knowledge and products to the workplace. Evaluation and

implementation of prevention efforts are most successfully achieved in

partnership between researchers and the industry at risk, which

requires outreach efforts on the part of the occupational research

community.

Report of National Commission on Labour (2002),

Government of India, made recommendations in the area of labour

welfare measures which include social security, extending the

application of the Provident Fund, Gratuity and unemployment

insurance, etc.

According to the report of The Training Effectiveness (1999),

the Occupational Safety and Health Act of 1970 (Public Law 91-596)

was enacted to assure, so far as possible, safe and health working

conditions for every working man and woman in the nation. The Act

mandated improved research, regulations, and training aimed at

reducing the incidence of occupational injury and illness.

Loos and Diether (1999), recommend substituting problem-

based instruction for content-laden, didactic instruction to achieve the

ends with limited training resources. Problem-based instruction

encourages independent, lifelong learning. Such instruction exposes

learners to a wider range of information than would likely be covered in

a traditional lecture format. Since problem-based learning is self-

72
directed, it is adaptable to students with different learning styles and

cultural beliefs. These benefits are equally applicable to professional

education and workplace training.

Cohen and Colligan (1998), Occupational Safety and Health

Act (OSHA) establishes nearly 100 standards for controlling workplace

hazards containing provisions for worker training to reduce risk factors

for injury and disease. Other standards limit certain jobs to workers

considered competent by virtue of special training.

Dunn and Griggs (1988), in their educational research points

out that, such constructs frequently relate to learner attentiveness,

ability and motivation to learn, learning style, and individual coping

mechanisms when ingesting new material.

Each year, corporate America provides nearly 2 billion hours

of training to approximately 60 million employees at a cost of $55 to $60

billions (Industry Report 1997). Effectiveness research can maximize

the impact of this investment on worker safety, productivity, and profits.

To equip America’s workforce with the skills necessary in today’s

economy, the U.S. Departments of Education and Labour have recently

cosponsored several initiatives that reflect the national importance of

worker training.

73
 Lobo (1986), has made an attempt to study the personnel

management practices in public sector industries. This study was

conducted at Visvesvarya Iron and Steel Industry, Karnataka. The study

covers the personnel practices such as personnel in public sector

industries, personnel structure at VISL, personnel policies, selection

and succession, remunerating the personnel, welfare measures and

industrial relations. The primary data were collected by interview with

workers. With the method of simple random sampling, 60 officers, 230

workers and 15 union leaders were interviewed.

Rao (1986) in his article opinioned that professional bodies

like National Institute of Personnel Management should constitute a

standing committee to monitor the proceeding in the Parliament

regarding the labour welfare measures.

Gupta (1986), in his study, has stated that the productivity of

any organization can be improved by application of capital intensive

high technology scientific and modern techniques and attitudinal change

of employees by improving work culture. The author has said that the

study of many organizations in developed and developing countries

have proved that technology itself may improve productivity but it

cannot sustain it for a long time. It is necessary that an integration of

high technology, scientific technique and work culture is continuously

followed up through detailed HRD process covering every section of

74
employees. High technology is playing an important role and this has to

be imparted to lower level of employees by training them in theory as

well as in practice so that the knowledge is applied to work situation.

The imparting of knowledge requires massive and continuous education

programme.

A study conducted by Saiyaddin (1983), observed the

purpose and cost of non-statutory welfare activities for the

organizations. Five public and six private sector organizations were

selected for the study. The study brought out an important conclusion

that the most predominant theme in the minds of organizations when

they think of the voluntary welfare measures was not only the output

and efficiency but also increasing loyalty and morale. In respect of cost

the study revealed that the public sector organizations spend more on

welfare activities, as compared to private sector. While public sector

spends more on transportation and recreation, private sector was found

to be spending more on housing according to the study.

Cropper (1977) gets the same result for preventive health

care with age. In general, since the risks of different illnesses show

different lifecycle patterns, the demand for prevention depends on the

specific intervention, where intervention is defined as any attempt to

intervene or interrupt the usual sequence in the development of a

disease. For some preventive actions like exercise, the health benefits

75
are realized much more quickly by older people and so will be not as

heavily discounted as when young people consider the intervention.

A study conducted by Koshan (1975), pointed out that in spite

of statutory provisions and enforcing agencies in India, the welfare

facilities were absent and the cement industry was the only one where

provisions were adequately enforced. The study suggested the need for

overhauling and tightening of the machinery of inspection. Appointment

of welfare inspectors for different industries, distinguishing the duties of

factory inspectors from those of welfare inspectors to submit annual and

quarterly reports and empowering the welfare inspectors to levy fine in

case of default, were some of the steps suggested in this study.

According to Grossman and Rand’s (1974) study treat

prevention and cure as separate inputs into the household health

production function. Grossman and Rand believe that groups with low

depreciation rate of the health capital stock demand preventive health

care and groups with high depreciation rate of the health capital stock

demand curative health care. The awareness of health care allows for

prevention and cure to be treated as substitutes by consumers. A higher

endowment of health increases demand for health investment, so

different in endowed health is magnified in terms of attained longevity.

The research work of Misra (1974), aimed at sociological

analysis of the labour welfare problems of sugar industry. The analysis

76
was based on the first hand data collected from the sugar factories of

Eastern Uttar Pradesh. The study concluded that the conditions of work

in sugar factories of eastern region of Uttar Pradesh were not very

satisfactory particularly in the respect of safety measures, cleanliness,

sanitation, latrine facilities, drinking water, rest rooms, etc. It also

pointed out that the provisions for casual leave and holidays, lighting,

housing, medical, education, are far from satisfactory.

According to Grossman’s (1972) seminal model, the

individual’s health capital stock determines the utility flow as well as the

time available for market and non-market productive activities. The

demand for health input is derived from the demand for health capital

which is viewed as a household health production function with time and

medical care as inputs. In the seminal models of Grossman, prevention

is taken as an investment decision to add to the health capital stock

since the higher the health stock, the lesser the time spent ill. However,

this model does not distinguish between preventive and curative care.

In Grossman’s et al (1974) model, health capital is assumed

to depreciate at a higher rate as people get older. Thus, if the price

elasticity of demand for health is lower than unity, the derived demand

for curative medical care increases with age.

The study of Zachariah (1954), based on a sample survey of

manufacturing undertakings in Bombay, covered welfare services and

77
working conditions while surveying the factors affecting industrial

relations. It was observed that better working conditions and adequate

provision of welfare services would contribute to harmonious industrial

relations.

Ramasathyanarayana and Jayaprakash (2012), carried out

his research work at KCP cement division, with an objective to found

out that the existing labour welfare measures and the level of

satisfaction. This study reveals that majority of the employees are

satisfied with all the labour welfare measures provided by the

organization.

Swapna (2011), has concluded in her article that, the modern

era of planning for prosperity, every nation appears to be concentrating

all its efforts to evolve an affluent society. In its broader connotation the

term welfare refers to a state of living of an individual or a group in a

desirable relationship with total environment, ecological, economic and

social.

Satyanarayana (2010), in his research article, revealed that,

labour welfare measures have an impact on determining the quality of

work life by increasing their satisfaction level towards welfare measures.

Frege and Frege (2005), in their research article, pointed out

that Industrial Relations (IR) research faces various pressures of

78
internationalization. Not only do global economic forces increasingly

shape the subject of the discipline, employment relations, but also the

academic community itself is becoming more international. The article

discusses whether and in what ways IR research is affected by these

trends. It is based on a comparative, longitudinal study of journal

publications in the USA, Britain and Germany. The findings reveal

significantly different patterns of industrial relations research across the

three countries.

In particular, the strong variation between US and British

research patterns challenges the common notion of a homogeneous

Anglo-Saxon in conducting social science research. The analysis

suggests that despite growing internationalization, industrial relations

continue to be strong embedded in nationally specific research cultures

and traditions.

Ali (2005), study analyzed employment relation systems of

three Asian countries-China, India and Korea- and makes a case for

diversion in employment relation systems. The study concluded that the

Globalization is here to stay; it would be ridiculous on the part of the

nations of the world to close their eyes to and wish it away. Any country

that wants to be on the economic map of the world would have to enter

this competitive environment. In order to face the competition, flexibility

is imperative; therefore the researcher sees in the three countries that

79
there is a trend towards flexibility. But the researcher have also seen

that the needs, types and levels of flexibility in different countries is

different based on the factors discussed.

There is no doubt that in the short run there is convergence

towards workplace flexibility owing to the pressures of international

competition, but in the long run in the three countries that the

researcher has discussed the future of flexibility will depend on the

interaction of the key players in their respective industrial relation

systems.

Sousa-Poza (2004), research article pointed out that, in most

European countries, there is some evidence that jobs became, and to

an even greater extent were perceived to have become, increasingly

insecure in the 1990s. In Switzerland, where unemployment has long

been far lower than the European average, unemployment increased in

the same period. In general, job stability has remained remarkably

constant in the past decade, and instability far below the European

average. Only with regard to voluntary job-to-job mobility can a

significant increase in the second half of the 1990s be observed;

involuntary turnover has actually decreased.

Hartog and Verburg (2004) have outlined the importance of

having an overarching philosophy (a mission statement and HRM

strategy) to the performance of a firm. Most of the innovation literature

80
talks about the need for internal champions of ideas and new systems

to combat inertia. The literature on the effectiveness of innovation in

workplace practices has examined the effects of adversarial labour-

management attitudes and employee resistance to change, installing

the introduction of workplace practice innovations. Often these are

boom of low trust levels between labour and management.

Ruyter and Burgess (2003), article compared the trends and

issues affecting labour security in the UK and Australia, using an

adaptation of Standing's 1997 typology. The increased polarization and

variability of hours worked, declining union densities and increased

wage inequality provide evidence of growing labour insecurity in both

countries. The growth of labour insecurity represents the reciprocal

impact of increased employer dominance in the workplace and

government pursuit of labour flexibility. Growing labour insecurity casts

doubts on the supposed benefits for EU economies of the Anglo-Saxon

model of deregulated labour markets. The last part of the article

considers measures to counter increased insecurity.

Jyoti and Sidhu (2003), study aimed to find out the changes

in the industrial relations scenario of Punjab due to changes in the

composition and structure of industrial base of Punjab after the

economic reforms introduced during the nineties. The study found that

the number of work stoppages has reduced in the post-reform period in

81
Punjab. But, at the same time, work stoppages are lasting for longer

durations and involve more workers and thereby, are more voluminous

in the post-reform period in Punjab. Furthermore, due to the inefficiency

of conciliation machinery in discharging its function, the workload of

adjudication machinery has increased. The study concludes that

economic restructuring has resulted in the shift of balance of power in

favour of employers. Lockouts are being used as a powerful weapon to

counter the increasing organized power of workers in the post-reform

period in Punjab.

Labour department, tenth five year plan 2002-07, the labour

department implemented as many as 26 labour legislations with the

objective of providing not only monetary benefit like minimum wages,

overtime, bonus etc to the workers, but also to ensure their health and

safety during the course of employment.

Cambridge (2001), study reviewed that the globalization

process and how it impacts the standards of employee relations ethics

in the United States. John Dunlop’s industrial relations systems

framework is employed to assess how the globalization process has

altered the ideology that binds the industrial relations system together

and the body or rules created to govern behavior in the workplace and

work community. The researcher discusses how globalization has

globalized and altered the context of industrial relations systems around

82
changing standards of employee relations ethics. The research also

review the significance of why there is national difference in the

contexts of industrial relations systems relating to the technological

characteristics of the workplace, the product and factors markets, and

the locus of distribution and power, are disappearing and being

integrated rapidly into the global economy. Additionally, the study

discusses the role of multinational corporations in the globalization

process and why the emerging global industrial relations system is

altering the standards of employee relations ethics in the American

workplace.

Dabscheck (2001), the research article examined the

operation of an industrial relations system through the notion of a

dominant paradigm; and the struggles of protagonists to shift the

paradigm in different directions to enhance their chances of success in

future struggle. The dominant paradigm operating in Australia is

contractualist regulation, a regulatory system tendered and served by

the Contractualist Regulation Club. Major issues examined in the review

include the High Court’s decision on allowable award matters; employee

entitlements; failed attempts by the commonwealth government to

introduce various legislative changes; policy position of the Australian

Labour Party and the Australian Council of Trade Unions.

83
 Human resource specialists play a crucial role in employee

relations. For example, if they develop communications and procedures

that apply appropriate information tools in a timely manner, employees

can access more abundant, higher quality information and can

communicate more effectively with management, resulting in being

more effective in their work. Managers and human resource specialists

must work in partnership to ensure effective communication to foster

between employee relations climate, since to develop and sustain such

relations, employers must keep employees informed of company

policies and strategies (Gomoz-Mejia 2001).

In the present competitive business environment, Indian

organizations are feeling compelled from within to reorient their

employment relationships (Budhwar, 2000; Sodhi, 1999). As Sousa

(1999) describes, the Indian government built on colonial labour

institutions and regulations to fashion an industrial relations system that

sought to control industrial conflict through a plethora of protective

labour legislation. The industrial relation system was influenced by the

strong ties between the major political parties and labour forged in the

struggle for independence. Under this regime, many aspects of

workplace industrial relations and human resources were regulated,

including detailed laws on health and safety, leave, dismissal and

layoffs, so as to avoid sources of conflict which might undermine

economic development. The industrial disputes act mandated that

84
employers could layoff workers only temporarily (180 days with

compensation), and provided that employers must seek government

permission for retrenchment and even closure of factories, which was

rarely given in view of the close ties between labour and political parties

(Kuruvilla and Erickson 2002).

Additionally, to foster good employee relations, managers

must listen to and understand what employees are saying and

experiencing and provide employees with the freedom to express

grievances about management decisions. Such employer-employee

behavior is part of the corporate culture, which can have an impact on

employee expectation and in turn productivity (Ivancevich 2001).

Sivananthiran (1999), the role of the state in the industrial

relations depends on the ideological (socialist, communist, or neo-

capitalist persuasion), political (neo-colonial, democratic, dictatorships)

and socio economic (protectionist and neo-liberal policies) orientation.

Heskett et al. (1997), proposed that quality of work life, which

is measured by the feelings that employees have toward their jobs,

colleagues, and companies, would ignite a chain effect leading to an

organization’s growth and profitability in the end. To improve the quality

of work life of the employees, companies are now emphasizing on

cordial employees relations and adopting a human resource strategy

that places high value on employees as organizational stakeholders.

85
 To survive and prosper, they have to prepare and develop

their employees so as to compete with overseas organizations in skills,

efficiency and effectiveness (Sparrow and Budhwar, 1997; Ratnam,

1996). After years of organizational restructuring and work re-

engineering, management comes to recognize that a productive

workforce is increasingly important to attain sustainable competitive

advantage for business organizations on a global basis (Bohel, et al.

1996).

Standing (1997), done a study based on the international

trends to more flexible labour relations in terms of the erosion of several

forms of labour-related personal security and the evolving forms of

labour market regulations. Standing suggests that growing labour

market flexibility has been accompanied by a reconstitution of the social

wage and a profound re-regulation of labour relations, not ‘de-

regulation’, which is an inappropriate term to describe any labour

market. The flexibility and market regulation has influenced the extent

and character of labour fragmentation, which is creating new challenges

for social and labour policy. The study concludes by sketching three

possible routes of reform, one stemming from the former era of social

regulation, the second extrapolating from the currently dominant market

regulations perspective and the third linked to the desirable extension of

democracy and the promotion of redistributive justice.

86
 Morley (1996), paper used the evidence from organizations

with nearly 200 employees in several countries across Europe to

explore the proposition that industrial relations in Europe is becoming

more convergent around a non-union HRM model. The evidence

indicates that, although there are some similar moves taking place,

national patterns remain distinctive, the IR/HRM distinction may be

sustainable in Europe and there are significant elements of continuity in

industrial relations in Europe alongside the changes that are taking

place.

As Switzerland is a small, open economy with weak union

power and employment protection legislation, this study casts doubts on

the extent to which exposure to globalization can influence job

instability. Instead, consensus- and stability-oriented industrial relations

and management practices, as well as the state of the external labour

market, appear to shape both job stability and security.

Workplace philosophy is not often mentioned as integral part

of innovative approaches to HRM and a key determinant of firm

performance. Yet HRM is often associated with organizational culture

(Guest and Hoque, 1994; Legge, 2001; Mabey and Salaman, 1995)

and management attitudes and personal belief systems certainly

influence the HRM system and its openness to new ideas (Howell

87
2005). The dominant ‘culture’ of a firm may influence the HRM policy

and practices adopted by organizations and vice versa.

Baker, Gibbons and Murph (1993), show how trust is needed

for many innovative HRM practices to work, and can be ‘proved’

through information exchange. But according to Ichniowski and Shaw

et al. (1997) once organizations have become established and culture

has become embedded there is strong resistance to change. They

show that particularly in the older plants “with their long histories of

adversarial relations under more traditional work practices, workers and

supervisors provide stiff resistance to any new work practices.” The

switching costs in such scenarios may be greater than the direct cost of

introducing the practices.

Arthur (1992), study tested the "strategic choice" proposition

that variation in workplace industrial relations policies and practices is

related to differences in business strategy. A cluster analysis of data

from a 1988-89 questionnaire examining workplace industrial relations

and business strategies in U.S. steel mini mills suggests that the

industrial relations systems of these mills can be broadly categorized as

emphasizing either cost reduction or employee commitment; similarly,

the business strategies of the mills appear to stress either the

manufacture of a few products in large quantities at the lowest possible

cost, or more flexible manufacturing, with products marketed on some

88
basis other than cost. Further investigation shows a significant

association between the type of workplace industrial relations system

and the business strategy choices in these mills.

Strauss and Sayles (1988), in his book provides a broader

perspective that was provided by specialized works dealing with

personnel problems from the one-sided viewpoint of specific disciplines,

such as industrial psychology, sociology, labour-relations or industrial

engineering. Each of these fields provides important insights, but the

purpose has been to investigate various contributions and apply them to

personnel problems. Thus the use of considerable theories is made, not

as abstract propositions but as tools for analyzing and solving real life

problems. The major purpose is not just to build a bridge between

managerial practice and the behavioural sciences but to lay firm

foundations in both areas as well.

Rao (1982), has revealed that the management did not take

initiative to settle the disputes. Most of the disputes were settled with

State intervention only. The study pointed out that a separate

department for industrial relations should be created to look into the

problems of industrial relations and to promote cordial relations between

the employees and management.

According to Deal and Kennedy’s (1982), opinion, successful

firms distinguish themselves from less successful ones through their

89
clearly articulated and shared norms and values regarding

organizational functioning.

Pareek (1981), has explained that the concept of human

resource as distinct from personnel emphasizes not only on individual

persons but also on groups of people functioning in an organization.

Human resource management is primarily a system that gives

importance to the employee and his supervisor. He stressed that all

activities of human resource management should help to strengthen this

two-person relationship and increase the trust and mutual

understanding between the so-called superior and the subordinate.

Industrial relations in India are conditioned not just by the legal

framework and history but also by societal expectations. According to

Indian social norms a number of social responsibilities are behold on

the employer towards the community in which the firm operates. In

exchange for being allowed to establish its operations in a particular

community. The firm is expected to provide something in return to the

local community.

90
2.4 TRADE UNION RELATIONS

Meardi (2009), has opined, relocations within an enlarged

Europe are often revealed as an unavoidable destiny or irresistible

threat for workers. This study outlines a number of contingent factors

which determine how serious the threats are and how feasible is an

effective union response. Such factors are then tested through in-depth

case studies of 12 plants in the automotive components sector (where

cross-border competition is particularly strong) showing how varied can

be the scenarios for industrial relations in multinational companies.

The research article found out the trends in outsourcing

industry in India vis-a-vis the role played by the industry related factors

in rebuffing (or accepting) unionization of its workers. The examination

is based on the review of extant literature on working and employment

conditions of BPO-ITeS and call centre employees. The paper

highlights the role of key policy actors in the external environment and

internal (organizational or contextual and individual) dispositions that

were instrumental in the failure of the unionization effort in the

beginning. It shows the significant impact of the competitive pressures

in the changing nature of employee relations in Indian BPO-ITeS

industry.

Ratna (2009), has stated the importance of recognition of

trade union through which management acknowledge and accept a

91
trade union as representative of some or all the workers in an

establishment or industry, and with which it is willing to conduct

discussions on all issues concerning those workers. When such

acceptance also includes the willingness of management to bargain

with that union may be termed as bargaining agent or agents.

Satheeskumar and Selvaraj (2009), in his article published

in the journal has stated that there is a tension between the role of trade

unions and workers’ congresses, which parallels the tensions discussed

in the Dutch situation. Branine discusses the contradictory impact of

the labour market improves the status of Chinese workers and shows

how the Chinese State has reacted to the negative impact of the reform

by passing a stream of labour laws designed to minimize industrial

unrest.

Pandey (2007), in his dissertation adopted the random

sampling technique for the purpose and interviewed with the help of

questionnaire. The whole universe has been classified into three

groups, - viz. workers, executives and trade union leaders/office bearers

of Bokaro Steel Plant. The research proposed to select nearly 160

workers, 70 executives and 70 trade union office bearers/leaders of

Bokaro Steel Plant. The study has been divided in Four parts First part

is introductory whereas the second part deals with various segments of

labour management relations. The third part analyses the various

92
aspects of the industrial relations concerning to trade unions on the

basis of primary data of Bokaro Steel Plant. The fourth part provides the

summary of the study. The study concludes that the industrial process

involves workers, executive, union leaders and the government

machinery. Trade Unionism has emerged in the industrial world as a

protection of the rights and interest of the workers. From the initial

stage of militancy the trade unionism in the modern world has come as

an active co-operator in the process of production. Although by and

large their focus is economic demand seeking for improvement in

wages, working and living conditions of the members yet their role and

increasing contribution in national development, shaping of national

policies cannot be ignored. The management should comprehend the

importance of workers as a integral part of organization for the

production and productivity which will open the path for amicable

industrial relations as well as industrial stability of the organization as

well as for country as whole. Industrial peace is possible only when the

management and the workers co-operate in their efforts.

Trade unions should concentrate their energy and attention in

a more constructive way to users in an era of industrial peace. The

judicious recognition of trade unions by respective managements and

concerted education of the workers are expected to develop the trade

union movement of its prevalent gangrene of inter and intra-rivalry. The

employers gained assistance from the unions in implementing their

93
corporate programmes, whereas the unions enjoyed additional

opportunity for enhancing their power through widening the scope of

negotiation into new issues other than traditional bread and butter

issues (Satrya and Parasuraman, 2007).

Turberville (2007) the article observed that the declining

union density in Australia and Britain was focused attention on the need

for union reorganization. Simon article examines how the development

of closed shops in the two countries Australia and Britain, influenced

member exit rates and the internal union relations now affecting union

renewal. Findings of Simon’s study show that legislative support for the

Australian closed shop tended to foster more union dependency on

state and employers, union bureaucratization, less active stewards and

more dissatisfied members than in Britain.

The subsequent outlawing of the Australian closed shop and

increasing employer hostility resulted in higher levels of density decline

than in Britain. While the greater resilience of British density supports

the case for developing strong workplace unionism, the relative

bureaucratization of Australian unions within an increasingly

antagonistic context, against the British situation of relatively indifferent

employers and steward independence, limits the transferability of

strategies designed to achieve union renewal.

94
 Andersen (2006), the article pointed out that in spite of

economic globalization, the liberalization of European markets and rapid

technological changes, membership density in the trade unions in the

metal sector in the Nordic countries remains exceptionally high

compared to any other European region. The coverage of collective

agreements has also remained intact, and unemployment is low by

European standards. Nevertheless, the Nordic metal unions face a

number of dilemmas.

The Nordic metal unions all recognize a need to engage more

actively in international, and especially European-level, policy-making,

including the coordination of bargaining processes. Even then the

Nordic metal unions fear that European regulation may undermine their

national bargaining autonomy. They also recognize the need for a

common Nordic position with regard to European policies; but

differences in industrial structures and traditions of labour market

regulation, alongside different national relationships to the European

Union and Economic and Monetary Union, represent obstacles to closer

cooperation between the Nordic metal federations. Moreover, a lasting

problem is the winning of the support of their members for European and

global activities.

The purpose of Redman and Snape’s (2006), study is to

analyze the evidence for trade union renewal in the UK fire service. Its

95
aim is to consider two main questions: “How have union-management

relations and the industrial relations climate been affected by

management reforms?” and “To the extent that there is worsening in the

industrial relation climate, as this had an effect on union leadership style

and also on union commitment and participation amongst ordinary

members?” The study draws on interviews with managers and union

representatives and a survey of firefighters in the north of England. The

research finds that a marked deterioration in the industrial relations

climate led to changes in union leadership and to an increase in union

commitment and participation amongst ordinary members. The poor

climate created the conditions for union renewal by bringing forward

union activists with more inclusive styles and by raising membership

awareness of the need to dynamically defend their existing terms and

conditions.

Moorthy (2005), the article attempted to find out the changes

that have occurred in industrial relations scenario in textile industry in

Tamil Nadu after the economic reforms introduced during the nineties.

The major findings of the study are that both the number of disputes

and the number of workers involved in the disputes have come down

progressively in the post reforms period in Tamil Nadu. At the same

time the man lose earning days due to strikes and lockouts which

shows an increasing trend in the same period. With the measures taken

by Government and labour department, the workload of intercession

96
machinery has decreased and this efficiency of conciliation machinery is

reflected in discharging its function. The study concludes that economic

reforms have affected industrial relations in textile industry in Tamil

Nadu as there is a declining tendency in industrial disputes. This

existing environment of labour unrest could be endorsed to total

violation of certain norms of discipline by a section of trade unions and

also by employers.

Visser (2005), made a study to despite surface stability, there

are significant changes in the modes of governance regulating the

relationship between law and collective bargaining as a source of labour

rights, and between norms defined at European Union, national,

sectoral and company level. Visser’s study concentrate on the European

integration process as a key source of change, first outlining the

weaknesses of informal coordination of wage bargaining within and

across countries, then discussing the tensions for trade unions created

by Economic and Monetary Union. The study concludes by examining

the diffusion of ‘opening clauses’ in sectoral agreements, the

displacement of collective by individual rights promoted by EU law and

the reduction in statutory standards of welfare and social rights.

Mathur (2005), suggests an increased incidence of union

avoidance policies by employers. Hiers and Kuruvilla (2002), in a wide

ranging survey of Indian industry in 1997, provide numerous examples

97
of the movements towards numerical flexibility and a clear increase in

green-field nonunion plants. On the whole, “the evidence clearly

suggests a shift from “maintaining labour peace” as a key underlying

imperative of the industrial relations system, and towards “the

enhancement of firm-level competitiveness through increases in

numerical flexibility” as India becomes more integrated into the world

economy.

Schroeder’s (2004), article used the concept of ‘designing

institutions’ and a heuristic model of strategic options to address two

questions. First, what institutional changes support a social Europe?

This question is examined on the basis of recent developments in the

European Union regarding macro-economic dialogue and the unions’

own policies of European coordination. Second, what is the influence of

these changes on national trade unions? The conclusion is that

institutional changes are limited, and strong national unions remain the

central agents of transnational coordination. The European Trade Union

Confederation and the European Industry Federations administer the

new coordination procedures, but their status is not enhanced

structurally.

Although employers clearly need to consider labour relations

from strategic perspective, union representatives must do so even more

98
if they are to keep their unions viable for tomorrow’s organizations

(Mello, 2003).

Deery (2002), research study pointed out that North America

employee can be committed simultaneously to both their union and their

company. Moreover, a co-operative industrial relations climate has been

seen to be conducive to the existence of higher levels of commitment to

both organizations. This study utilized a sample of white-collar unionists

in Australia to identify whether union and company commitment could

be predicted by the same factors and whether positive perceptions of

the industrial relations climate were related to dual commitment. The

research found no evidence of dual commitment.

Furthermore, company and union commitment were predicted

by different factors, and employee perceptions of a co-operative

industrial relations climate were associated with higher employee

commitment to the company but lower commitment to the union.

Dhal, Kailash and Srivastava (2002), the study, of Dhal,

Kailash and Srivastava based on a questionnaire survey in South

Eastern Railway, Kharagpur, observed the perceptions and attitudes of

actors of the industrial relation system. Workers were found to be

satisfied with the approach of the management but not with union

leaders. Managers were also trying to adopt people building strategies

and gain the assurance of workers through establishing direct channels

99
of communication with them and bypassing the union. Dhal, Kailash

and Srivastava considered union leaders as obstacles, not willing to

maintain good relationships. Union leaders succumbed to pressure due

to the loss of membership and lack of participation of workers in union

activities.

Dhal, Kailash and Srivastava were satisfied with the prevailing

union-management relationships but considered management as an

opposing force, as they were working towards decreasing the

membership, and creating multiplicity for their own interests. Thus,

union leaders had to bear the responsibility to increase membership,

work for the success of the union as well as maintain a favourable

union-management relationship. Implications of the findings for the

management and union leaders are briefly discussed.

Union density was about 38% in the formal sector workers. As

can be ascertained from above, the unions had an influential voice due

to their links with political parties, in fact all political parties had their

union wings. Unions were mostly structured on enterprise, industrial,

political or regional lines. Bargaining structure during this period was

industrial or enterprise based, although there was provision in the laws

for tripartite structures and works council type institutions but these

were not followed in practice (Kuruvilla 2002).

100
 Since 1991 and the liberalization of the economy, Kuruvilla

and Erickson et al. (2002) observe a transitions in Indian industrial

relations. The absence of sole bargaining agent legislation in India had

created, particularly in the period leading up to the early 1990s, a

multiplicity of unions at each workplace.

Black and Lynch et al. (2001) have also argued that the

productivity effect of unionization varies according to how other human

resource management factors such as decision making and

compensation are combined.

Bhattacherjee (1999), examined the role of organized labour

in India in a structural and historical context. It attempts to trace the

economic, political and social effects of the trade union movement and

its strategies over time. These effects are felt at enterprise- and/or firm-

level, industry-level, regional and national level. First the researcher

believe the effect of changing economic conditions on the evolution of

trade unions and bargaining institutions in largely urban labour markets

in the post-independence period (1947 onwards). Some contemporary

issues affecting the organized labour movement in India today are then

discussed. The study has two main objectives: a) to present a history of

Indian industrial relations, broadly understood as the changing

relationships between workers, trade unions, employers, the economy

and the state; and b) to posit a political economy of trade unionism in

101
India. The contrasting view of Freeman and Medoff (1984) of trade

unions as "monopoly" institutions, or as the "collective voice" of workers

serves as a theoretical framework here. From a policy perspective in

democratic and pluralistic societies, the objective must be to minimize

the "monopoly" effects and to strengthen the "collective voice" effects.

Since economic liberalization, every state government in India

has attempted to attract national and international capital, even hired

international consultants to draw up economic renewal agendas. A vital

consideration in this “post-liberalization disclosure” has been the

question of work ethic and comparative union militancy. Although the

data are not exhaustive the more industrial Indian states of Maharashtra

(in which Mumbai is located) and Tamil Nadu (in which Chennai is

located) have a higher number of registered unions and larger

membership according to the ILO (Bhattacherjee et al. 1999).

The fundamental shift in the relationship between employers

and the trade unions, following the gradual realization that the interests

of all are best served through harmonious rather than adverse

employee relations (Pettinger, 1999).

Gawhane (1998), has studied in his research article that the

organization structure of unions, unions’ activities, collective bargaining,

wage agreement related to productivity and quality circle. He has

102
suggested that the size and structure of unions should be minimized to

reduce the unproductive man-days.

Verma (1998), in his doctoral thesis has highlighted the

satisfaction of workers. The results of the study reveal that 36 percent of

the workers are satisfied with the working conditions. Workload is

considered adequate by a majority of workers. Majority of the workers

are satisfied with the working of trade unions and felt the importance of

collective bargaining in solving industrial disputes.

Sinha (1998), done a study related to the working of trade

unions in coal mining of Bihar. According to his study, most of the small

and independent trade unions of coal mining of Bihar are not affiliated to

any National Level Union. The study had also pointed out that there was

inter-union rivalry which caused violence and disorder in the coal fields.

According to the ILO World Labour Report 1997-98, union

membership as a percentage of nonagricultural labour in India dropped

from 6.6 percent in 1985 to 5.5 percent in 1995. The corresponding

figure in 1995 for Argentina was 23.4 percent, Brazil 32.1 percent and

Mexico 31 percent. Union membership as a percentage of formal sector

works in India declined from 26.5 percent to 22.8 percent between 1985

and 1995 (the corresponding figures in 195 were Argentina 65.6

percent, Brazil 66 percent, Mexico 72.9 percent).

103
 According to Chatterjee’s, book, it is the wide-ranging work

which deals with personnel management and industrial relation. It is a

deep study of practices of personnel management in Indian context,

from recruitment to retirement. It also covers the entire gamut of trade

unionism, trends of industrial conflicts, legal processes for resolving

disputes etc.

From the author Sumathi’s (1995), pointed out in her research

article that the existing industrial relations in the study unit and

suggested for better industrial relations by highlighting the wages and

welfare measures, machinery for settlement of disputes, role of trade

unions, process of accident and safety measures provided by Dalmia

Cement (Bharat) Ltd.

In their conceptualization, the collective bargaining system

would need to be modified to allow for this larger role to be played by

unions. Another variant finds unions becoming so involved with

management that a system of joint governance develops, removing the

need for collective bargaining (Verma and Gershenfeld, 1993).

The Bluestones see unions emerging as full partners with

management, eventually becoming involved in all aspects of strategic

business decisions (Bluestone & Bluestone, 1992).

104
 Joseph (1990), has observed that works committee can be

formed and suggestions scheme should be introduced. Trade union

leaders should co-operate among themselves. Canteen committee

should be reviewed. Production committee can be formed. The

management can hold joint meetings with the staff and union officials in

resolving various issues. Some financial incentives can be given to the

outstanding workers who show loyalty, sincerity and regularity in their

work.

Punekar et al. (1990), has stated the purpose of trade union,

that through their collective action, workers ask for more wages, less

hours of work, reasonable amenities and humane treatment.

Alexander (1990), carried out a study on and has observed

that industrial relations are achieved by avoiding or preventing industrial

disputes. The employer should provide various facilities to the

employees. The worker’s union should recognize that political party

should not interfere in the industrial relation matter.

Unions competed with each other for membership in a given

workplace, resulting in highly conflictual industrial relations, as the

conditions for a stable partnership between employers and unions did

not exist (Ramaswamy 1985; Ratnam 1996). But industrial relations

legislations reform is now on the agenda, given the pressure from both

employers and the World Bank to allow an “exit policy”. Employer

105
practices clearly show more aggression than previously; the number of

lockouts has increased dramatically, even as strikes have declined

(Ratnam 1996).

The traditional link between unions and political parties (each

major political party has its trade union arm) provided the labour

movement with considerable voice despite their low density figures but

the government appears to be siding more with business more recently,

particularly in important export areas like IT, bio-tech and ready-made

garments.

Bhattacherjee (1987), estimated the bargaining effects of

union-types on pay and fringe benefits for blue-collar workers, using

119 recently negotiated plant level contracts from the advanced

manufacturing sector in Western India. The sample is divided into

'external' unions, i.e., those that are affiliated to a trade union

federation, and 'internal' unions that are plant based and independent of

any organization. Results indicate that the independent internal unions

secure higher wages and fringe benefits.

Kujawa (1983), has conducted eight case studies of U.S.

manufacturing subsidiaries of Japanese multinationals and analyzed in

terms of variations in competitive strategies and industrial relations

practices. Based on data collected in 1980 during on-site visits, each

firm is reviewed in light of the technology contributions coming from the

106
Japanese parent and is categorized as having product-, process-,

and/or management-centered technology strategies. The industrial

relations practices are also grouped according to similarities surveyed.

These groupings were then compared and contrasted. The findings

were consistent with hypotheses that firms with management-centered

strategies are more likely not to be unionized and to oppose

unionization, to prefer a less stratified work force in terms of number of

job classifications and specifically identified job assignments, to

maintain flexibility in work-force management, to conduct considerable

cross-training and to strive to avoid layoffs of production personnel.

Conversely, the groupings indicated little relationship, if any, between

technology strategy and compensation levels.

The findings are interpreted in light of product-life-cycle and

risk-aversion models of firm behavior. The question of whether

technology strategy is a reasonably good predictor of industrial relations

practices is also addressed.

Rao (1982), has probed into the reasons for labour

management conflict in Andhra Pradesh State Electricity Board. He has

found out that the main reasons for conflicts between labour and

management was due to lack of appropriate organizational structure,

lack of understanding of workers’ problem on the part of management

107
and unfavourable attitudes of trade union leaders towards the industrial

relations.

Ramaswamy (1985), has carried out a sample survey among

public sector undertaking with 130 managers to identify the causes of

dissatisfaction, revealed that there were widespread grouses about pay

and perquisites, particularly at the large increase in workers’ pay

packets which had reduced differences. But the main reason was

widening differences between managers and bureaucrats, which helped

to create the alienation. Other causes included the loss of job

satisfaction.

Nicholson (1979), has found in the case study approach on

the industrial relations climate of a steelworks was investigated through

a structured interviews with shop stewards and managers at all levels.

Interviewees were asked how often they have handled different types of

industrial relations issues, how often they have interacted with their

opposite numbers at different levels to solve those problems, how

satisfied they are with the way each of the problems were handled and,

how satisfied they are with their opposite numbers' handling of industrial

relations problems generally.

Results show that there was union-management agreement

about the nature of the local climate, but that the climate differed across

departments in accordance with data from independent sources. The

108
findings also pointed out that in this plant the climate was more ‘issue-

centered’ than ‘person-centered’. It has concluded that the technique

could be similarly useful in other settings for the speedy appraisal of

industrial relations at plant level, but that more comparative research on

industrial relations climate was needed.

Gupta (1973), made a study on the role of trade unions in the

regulation of wages of colliery workers. He has recommended that

organized labour movement alone can bring wage parity among the

workers of coal mines.

Sivayya (1971), in his article stated that if the employees are

satisfied with the employment and working conditions, social security

and welfare measures, that attitude of the management towards their

unions, and the methods adopted to settle disputes that may arise from

time to time, there exist good industrial relations.

Subramanian (1967), has pointed out specifically, the report

given by Royal Commission on Labour in India that, ‘recognition of trade

union should mean that the employers recognizes the right of the union

to negotiate with him in respect of matters affecting either the common

or the individual interests of its members’.

Vaid (1965), felt that, ‘the politics of unions and of employers

which influence the enterprise level decisions was responsible for a big

109
percentage of disputes due to “other” causes. Recognition of unions

may very often mean opening the plant gates to politicians who belong

to an opposite camp. The employers’ politics does not permit them to

oblige the unions in this regard and so the tug of war continues’.

The growth and character of trade unionism in a country is

conditioned by a set of economic and social factors. Trade union

movement in India is best with many obstacles. Most of the Indian

Trade union leaders fare “outsiders” i.e., they are educated middle class

individuals, who come into the union from outside, rather than through

the wage earnings ranks. (Kennedy 1956).

Webb defined a Trade Union as “a continuous association of

wage earners for the purpose of maintaining or improving the conditions

of their working lives” (Webb and Webb 1950).

2.5 GRIEVANCE MECHANISM

In the world of work a grievance is a formal statement of

complaint or suggestion, generally against an authority figure.

Procedures for are common in unionized organizations (Ratna 2009).

Jucius (2009), has defines a grievance as ‘any discontent or

dissatisfaction, whether expressed or not and whether valid or not,

arising out of anything connected with the company that an employee

thinks, believes, or even feels is unfair, unjust, or inequitable’.

110
 “Grievance Redressal and Procedure, Study on Reforms and

Restructuring of Meghalaya State Power Sector” A grievance can be

defined as any sort of dissatisfaction, which needs to be redressed in

order to bring about the smooth functioning of the individual in the

organization.

Discontent or dissatisfaction is not a grievance. The

employees initially find expression in the form of a complaint. When a

complaint remains unattended to and the employee concerned feels a

sense of lack of justice and fair play, the dissatisfaction grows and

assumes the status of grievance.

State Bank of India Vs. All Orissa State Bank Officers

Associations (2003), the Supreme Court held that there is no common

law right of a trade union to represent its members, whether for purpose

of collective bargaining or individual grievances of members. On

general principles of equity, justice and fair play, it was held that

minority groups and individuals should also be afforded an opportunity

of ventilating their grievances in a given situation and merely because

the majority union is representing a claim on the rights of other minority

and individuals cannot be left out.

International Labour Organization, usually grievance related to

non-fulfillment of one’s expectation from the organization. Dissatisfied

employees usually manifest defiant behavior. This idea of a grievance is

111
also in tune with the definition set out in the ILO Examination of

Grievances recommendations, stating;

“The grounds for grievances may be any measure or situation

which concerns the relations between the employer and worker or

which affects or may affect the conditions of employment of one or

several workers in the undertaking when that measure or situation

appears contrary to provisions of an applicable collective agreement or

of an individual of employment, to work rules, to laws or regulations or

to the custom or usage of the occupation, branch of economic activity or

country, regard being had to the principles of good faith”.

In 1998, the Indian Government ratified Convention 122 of the

International Labour Organization. Article 1 of the Convention it can be

deducted that the workers possess right to get redressal for their

grievances and redresal forum should be performed by the Government

of India.

Section 2-A, implies that an individual’s grievance not related

to a dismissal or discharge will not constitute an industrial dispute. For

example, a worker’s grievance that his seniority was overlooked when a

promotion decision was made will not constitute an industrial dispute,

but may be redressed through a grievance redressal procedure existing

in the establishment.

112
 According to Srivastava (1992), opinion Effective employee

relations in any business unit achieved through rewards and

recognition, transparent communication system, proper attention

towards employee grievances.

Durai (1997), has conducted a research with the purpose to find

out the existing state of labour management relations in the study units

and to make a comparative study of labour management relations and

organizational climate of different firms. The result of the study shows

that the significant organizational climate variables which cause

maximum variation in Labour management relation are welfare facilities,

monetary benefits and grievance handling. The non-significant

variables are namely, safety and security, objectivity and rationality,

participative management, recognition and appreciation.

The study suggested that the management must revise the

wages of the workers from time to time to enable them to cope with the

inflationary conditions. The management must provide fair wages, relief

and rewards to workers on time. The management should give more

attention towards welfare facilities in the form of subsidized housing,

canteen, transport, education and healthcare assistance. The concept

of personnel audit is to be strictly enforced to ensure the effective

implementation of human resource policies and programmes. The

management should promote effective grievance handling mechanism

113
for fair and prompt resolution of grievances and the industrial relations

departments should be set up in every unit exclusively to deal with the

matters relating to labour management relations in the organization.

In due course of time, the number of unions has diminished.

The adversarial bargaining trend of the unions towards management

has changed in India. The labour union started to work co-operatively

on issues such as plant designs and locations. (Adler 1993).

The labour unions also participated in team-oriented pay plans

(Miller and Schuster 1987); recruitment and selection procedures

(Collins, Hatcher, and Ross 1993), and quality improvement

(Bognanno and Kleiner 1992). Research in the United Kingdom found

that innovative human relation working practices are more likely to be

adopted in unionized plants (Sisson 1993).

Sinha (1987), describes, the establishment of Works

Committees, the encouragement of workers organizations and the

settlement of the problem of bonus by constituting a Bonus Commission

were the other features of this plan document.

Lansing and Kuruvilla (1986), views that including selective

individual disputes as industrial disputes protects the

individual worker from being victimized and losing his source of

114
livelihood in the process, especially where he was not a member of the

union.

Freeman and Medoff (1984) argued that in unionized settings,

employees will more often voice their common views or grievances

whereas in non-union settings, employees are more likely to exit in

difficult situations. The presence of a union has linked to wages,

working conditions and safety.

Givry and Schregle (1968), broadly said that a grievance can be

defined as any discontent or dissatisfaction with any aspect of the

organization. It can be real or imaginary, legitimate or ridiculous, rated

or unvoiced, written or oral; it must be however, find expression in some

form or the other.

Hindustan Antibiotics Vs. Its Workmen (1967), analyzed,

industrial relations no longer remains the concern of labour and

management alone with the emergence of the concept of welfare state,

new ideas of social philosophy, national economy and social justice.

Workmen of Dimakachi Tea Estate Vs. Dimakachi Tea

Estate (1958), predicts that the concern of state in matters relating to

labour is a product of its obligations to protect the interest of industrial

community, while at the same time fostering economic growth in almost

all countries.

115
SUMMARY

It is clear from the above concepts that, the employees

constitute the most valuable asset of any organization and consequently

any neglect of this important source is liable to result in an increased

cost of production, in terms of wages and salaries, benefits and

services, working conditions, increased labour turnover, absenteeism,

indiscipline on the ground of discontent and the like besides

deterioration of quality of goods and strained relationships between the

employees and management. Maintenance of good human relationship

is the main theme of industrial relations because in its absence the

whole edifice of organizational structure may crumble down. No industry

can survive if it does not create a congenial industrial relationship with

its employees. A sound financial position is needed for the industrial

growth and expansion, but more than that a good industrial relation

would certainly promote good understanding leading to further

development and consolidation. With the background of these studies

the next chapter proceeds to design the research methodology of this

research work.

116
 CHAPTER III

NEED FOR THE STUDY & COMPANY PROFILE

A study of Industrial relations is significant in the sense that

without smooth, cordial, peaceful and harmonious labour management

relations an organization, cannot function effectively and cannot

contribute its mite to the welfare of its workers and the progress of the

nation.

A good industrial climate is essential for the expansion of

industry. It has been increasingly realized that the industrial system has

brought about numerous complexities. Higher living standards

encourage demand for luxuries and services. So it is obvious that the

technological advances eliminate long established jobs and create

opportunities that require sharply different patterns of experience and

education. All these changes have made the present system of

employment relationship very complex. Under these circumstances

understanding of human behaviour and psychology is essential on the

part of those responsible for managing man power resources.

117
3.1 STATEMENT OF THE PROBLEM

India is the world’s largest producer of sugar cane and

occupies a very proud place in the world and bringing out socio-

economic changes in under developed rural areas (World Sugar News,

2010). Sugar industry covers around 7.5% of the total rural population

and provides employment to 5 lakhs rural people. About 4.5 crore

farmers are engaged in sugarcane cultivation in India. Sugar mills have

been instrumental in initiating a number of entrepreneurial activities in

rural India (Pandey, 2007).

Tamilnadu is one of the leading producers of sugar in the

country and its contribution is about 7% of country’s total sugar

production. According to Sugar India Year Book 2012, there are 46

sugar mills in Tamilnadu of which 16 sugar mills are in cooperative

sector, 3 in public sector and 27 in private sector. It is a major industry,

which plays a vital role in the development of a network of good roads

and infrastructure in the rural areas. A large part of the rural population

is involved in the functioning of sugar mills. They usher in radical

changes by providing facilities like agriculture, extension of irrigation,

education, health, dairy and poultry. The result is a socio-economic

transformation of the rural India. They harness and reinforce the

capacities and energies of men and women human resource in a

meaningful and fruitful way.

118
 Even though higher growth in the sugar industry, still some

problems and challenges are there in the progress. The reasons may

be like; lower sugarcane yield, sugar recovery, and financial stringency,

steadily declining profitability, lack of integration between farmers and

sugar mills, ever increasing production costs and mounting losses, lack

of good relationship between workers and management and job security

pulls down the progress of Indian sugar industry. Even though, Private

sector sugar mills are more in numbers compared to cooperative and

public sector sugar mills it is not in the position to perform well. In order

to enhance production and productivity it needs quality management at

all levels of activity, professionally competent as well as co-operative

oriented human resource. Nevertheless, very few attempts have been

made to improve the competent human resource by enhancing

adequate labour welfare measures through which industrial relations

can be build at the state level. In this context, the present study

pertaining to the impact of labour welfare measures on industrial

relations in the private sector sugar mills at Tamilnadu has been

planned. The researcher has attempted to analyze how the quality of

good industrial relations can be increased by providing better labour

welfare measures to the employees in the selected sample unit of the

private sector sugar mills functioning in Tamilnadu.

119
3.2 A Picture of Perambalur District

Tamil Nadu State was born on 1st November 1956. It is situated

at south east extreme of the Indian Peninsula, bounded on the north by

Karnataka and Andhra Pradesh, on the east by the Bay of Bengal, on

the south by the Indian Ocean and the west by Kerala. It spreads over

an area of about 1.3 Lakh square kilometers. As on 31st December

2010 the state has been divided into 33 Revenue Districts, 215

Revenue Taluks, 1,120 Revenue Firkas and 15,979 Revenue Villages.

As per December 2010 Statistics the total geographical area is 130.123

lakh hectares. The total cultivated area is 72.372 lakh hectares of which

sugarcane is cultivated in 2.21 lakh hectares. There are 46 sugar

factories in Tamilnadu to cater to the needs of the total population of

74,319,357 consisting of 37252810 males and 3,70,66,546 of females.

Perambalur is situated on National Highway 45 that runs from

Chennai to Theni. Geographically it is almost at the center of

Tamilnadu. The area of Perambalur District is 3829.75 square

kilometers extending from the extreme end of Cuddalore and Salem

District in the north, Trichirappalli and Thanjavur in the south,

Trichirappalli and Namakkal in the west, cuddalore in the east. The

overall population of Perambalur District is 4,93,646 out of which

2,46,141 are males and 2,47,505 females. Perambalur Parliamentary

Constituency consists of Perambalur, Kunnam, Ariyalur, Andimadam,

120
Jeyankondam and Uppiliyapuram assembly constituencies. It is a

reserved and economically backward constituency.

Though the area is generally hilly and backward, there are

remarkably fertile regions one of which is located in Ladapuram called

Peacock Falls. The Perambalur area is very famous for a few shrines,

one being the Madhura Kali Amman temple situated in Srivuvachur on

N.H.45, about 6 kilometers from Perambalur Head Quarters. It is

historically important. It is given to understand that the Saint Adhi

Sankarar stayed and worshipped here. It is very popular and very much

frequented by people from various parts of Tamil Nadu. There are also

other remarkable places in this district. The Murugan Temple in

Chettikulam, Valieesvarar Temple in Valikandapuram, Varatharaja

Perumal Koil in Kallangurichi, the MadhanaGopala Swamy temple

situated in the city of Perambalur is popularly known. People belive that

Pancha Pandavas stayed and worshipped in this temple. The kutram

Poruthavar Alayam in Adudurai, too is one of the important temples.

The Ranjan Kottai Fort located by N.H.45 near Valikandapuram is

another historically important site in this area. It attracts the attention of

the tourists particularly school children. One more important site is the

Adaikkala Madha Church in Elakkurichy near Tirumanur it was built by

Constantine Joseph Beschi an Italian Jesuit Missionary popularly knows

as Veerama Munivar. One more popular and historically important

temple is the great temple of Siva at Gangai Konda Cholapuram about

121
60 Kilometers from Perambalur on the Kumbakonam – Chidambaram

main road. Another important factor is the reminiscence of the victory

achieved by RajendraChola son of Raja Raja Chola against northern

kings. There is a Bird Sanctuary in Karavetti, Kunnam Taluk maintained

by the Archiological Department of the Government of India. It is about

40 feet high. These are some of the important places catching the

attention of the people of this part of Tamilnadu. The sole sugar factory

is situated in Eraiyur near Chinnaru dam on NH 45 near Thozhuthur, 20

kilometers from the headquarters of Perambalur District. it is named

Perambalur Sugar Mills Limited, Eraiyur , Perambalur. Sugar cane is

cultivated in about 14500 hectares of land. The yield of the crop of

sugarcane in this area is much more than the required quantity. Hence

the surplus cane is sent to other mills in the other districts.

3.3 M/s Perambalur Sugar Mills Ltd

Location

Perambalur Sugar Mills Limited is a subsidiary unit of TamilNadu

Sugar Corporation Limited. It is situated in Eraiyur Village, about 20km

from Perambalur on Trichy – Chennai National Highways, the mill

sprawls over an area of 133 acres of land. This is an agro-based

industry, sugarcane being the raw material. Crushing operation will be

going on for about 6 months every year and the remaining period will be

utilized for overhauling of the machinery. The factory had its maiden

122
crushing during 1977-78 season with an installed capacity of 1,250 tons

of cane per day.

TABLE 3.1 AREA OF OPERATION

TALUK DISTRICT

1. Perambalur Perambalur

2.Veppanthattai Perambalur

3. Kunnam Perambalur

4.Ariyalur Ariyalur

5.Senthurai Ariyalur

Expansion

The installed capacity of the mill was increased during 1989-90

from 1,250 TCD to 3000 TCD and crushing at increased capacity

started on 6.11.1990. The loans received from financial institutions for

expansion have been fully repaid.

Management

The mill is administered by the Board of Directors . The

organisational chart is given in the next page.

123
 ORGANISATION CHART

Chief

Cane Engineering Manufacturing Accounts

Chief Chemist
Chief Eng. Chief Accountant
Chief Cane Officer

Dy. Chief Chemist Account Officer

Deputy Eng.
Cane Dev. Officer
Mfg. Chemist Accounts
A.E (Mech)/ (Ele)
Asst
Cane Supdt. Lab – In Charges Acct.
Officer Supervisor Mech
Suprvisor
Lab - Chemist Cashier
Ele.Sup & Clerks

Cane Dev Clerical Mfg. Supervisor

Draughtsman Clerical staff
Assistant & Other
Staff Operatives
Operatives
Clerk &
Field
Staff

Personal & General Administration

Medical Officer Senior Manager

Lab Welfare Officer Admin Officer

Pharma / Sanitory

Head Time Keeper Supdt./ St.Keeper

Medical Order Line

Shift Time keeper Clerk & Attenders

Token Attdt Mesgrs/ Drivers

124
3.4 Sugar Policy

Sugar Season

One sugar season is 12 months from October to September. The

actual crushing will depend upon the availability of sugarcane, which will

normally be for about 6 months in a year.

Cane Price

Statutory Minimum Price

The Government of India fixed the statutory minimum cane price

under the Sugarcane Control order 1966. This price has to be paid by

the sugar mill within 14 days from the date of supply of cane failing

which interest at the rate of 15% will have to be paid to the cane

growers. The statutory minimum cane price is fixed by the Government

of India for the recovery of 8.50%. The cane price is fixed for a sugar

mill based on the Peak period recovery of the mill. The peak period

recovery refers to the average recovery obtained from 1st December to

31st March of the preceding season. The statutory minimum price for

2010-2011 for Perambalur Sugar Mils was Rs.1017.60 per ton.

State advised price

Every year the state Government announces the statutory

minimum price over and above the price fixed by the government of

India and this price is known as State Advised Price. The state advised

price for 2010-11 for this mill was Rs.1537.40 linked to 8.5% recovery.

The cane price paid by the mills since 2001-2002 is furnished below:

125
TABLE 3.2 CANE PRICE PAID DETAILS FROM 2001-02 O 2010-11

Cane price paid as

Crushing G.O.I Minimum Cane
Under Bargova Total Price
season Price for P.S.M
formula paid by P.S.M

2001-2002 737.30 183.10 920.40

2002-2003 793.40 163.10 956.50

2003-2004 826.00 160.00 986.00

2004-2005 850.60 189.40 1040.00

2005-2006 891.00 219.80 1110.80

2006-2007 802.50 240.50 1043.00

2007-2008 811.80 213.20 1025.00

2008-2009 811.80 431.00 1100.00

2009-2010 1017.60 783.80 1537.00

2010-2011 1264.40 735.90 2000.30

Source: Secondary data

Government of India’s final cane price and additional cane price as

per Bhargava formula

Initially the Government of India fixed the statutory minimum price

for sugarcane for a particular season based on peak period recovery of

the previous season. At the end of every season the final cane price

payable to the cane growers is being computed under Clause 5A of the

126
Sugarcane control order, 1966,. For working out this final price, the

Government of India announces the Zone wise cost of production ‘L’

factor. The sales realization of sugar out of a particular season’s sugar

is matched with the cost of production and the surplus is being shared

between the sugar producers and growers @ 50:50. While announcing

the final cane price, the statutory minimum price initially paid is

deducted.

Incentive cane price

The Co-operative and Public Sector Sugar Mills in TamilNadu

have adopted the practice of declaring an incentive cane price for the

cane drawn in a particular season to enthuse the growers to bring in

more area under cane cultivation. While declaring such incentive cane

price, the mill usually deducts a portion of the price towards the area

development fund. The corpus of the fund is usually utilized for socially

relevant schemes in the command area of the mills.

The sugar industry in Tamilnadu is presently paying the following

taxes, duties, etc. periodically to the state / Central Government.

127
3.5 Taxes

Purchase Tax

The purchase tax is payable to the Government of Tamil Nadu at

the last point of purchase of sugarcane. It was 8% on cane value. But it

has been revised as a fixed rate of Rs.60%- per MT From 01-04-1997.

The entire purchase tax is being borne by the sugar industry and is

being absorbed in the cost of production.

Sales Tax

The sugar industry is presently paying sales Tax on sale of

Molasses, Bagasse, Press and Scrap. There is no sales tax on the sale

of bagasse to Paper mills. The sales tax is collected form the

purchasers of these by – products, scrap etc. There is no financial

commitment for the sugar mills under this head.

Sugar Cane Cess

The sugarcane cess is payable by the sugar industry at Rs.15/-

per M.T, to The state Government for the Cane purchased by a sugar

Mill from beyond the local panchayat area. The sugar Mill absorbs this

in its cost of production this. The Government of Tamil Nadu is utilizing

this cess for implementing sugarcane Road Development Scheme. A

separate Department for Sugarcane Cess Road Development is

functioning in the State with a Superintendent Engineer at the helm of

affairs.

128
Excise Duty

The Government of India is maintaining the Sugar Cess collected

from the Sugar Industry and the corpus of this fund is being utilized

presently for the following Objectives:

 Sanction of loan for Cane Development Activates

 Sanction of loan to bridge the gap in the promoter’s contribution

for modernization/rehabilitation.

 For making grants for the purpose of any research projects aimed

at developing the sugar industry.

 For subsidizing the holding charges on Buffer Stock..

As in the case of Sales Tax, the incidence of Excise Duty and Sugar

Cess is being transferred to the purchasers and hence there is no

financial commitment to the mills.

Sale of Sugar

As per the existing sugar Policy (Dual Control) every sugar

producer shall sell 40% of their production as Levy Sugar to the public

distribution system through the Civil Supplies Corporation / Food

corporation of India and the balance 60% shall be put on the open

market. Under the sugar control order, 1966 the sale and dispatch of

sugar (both levy and free) is regulated by the monthly release orders

issued by the Directorate of Sugar, Government of India. The quantity

released for a month under free sale should be sold before the end of

that month.

129
Price of Levy Sugar

The price of levy sugar called the ‘Notified Price’ for a particular

season is fixed by the Government of India. The levy sugar price for the

2010-2011 sugar seasons for Tamilnadu zone was up to Rs.4987.63

per Qtl. This price was paid for the sugar dispatched / delivered at

factory gate. While fixing the levy price, the Government of India takes

into account the following factors.

 At the minimum price, if any, fixed for sugarcane by the

Central Government

 The manufacturing cost of sugar

 The duty or tax, if any paid or payable thereon.

 A reasonable return on the capital employed in the business of

manufacturing sugar.

Free Sale Sugar

The price of free sale sugar depends upon the supply and

demand position of the market, its price in the neighboring states and

the transport charges involved for the purchase of sugar from the

neighboring states. Tender organized by Tamil Nadu Co-op. Sugar

Federation affects the sale of free sale entitlement. All the Mills receive

consideration for the levy and free sale sugar in advance.

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3.6 By – Products

Bagasse

The production of bagasse will be normally around 30% of the

cane crushed. About 80% of the bagasse will be utilized as fuel in the

mills boilers for production of steam, which is utilized for generation of

electricity. The remaining quantity of bagasse is sold to TamilNadu

Newsprints & Papers Limited.

Press Mud

The production of press mud will be around 30% of the cane

crushed. The entire press mud is being given to cane growers @

Rs.80/- up to date Per tonne.

Molasses

The production of Molasses will be around 4.25% of the cane

crushed. The possession and sale of molasses was completely

controlled prior to 10.06.1993. The government of India rescinded the

Molasses control order on 10.06.1993 and consequently the State

Government has also decontrolled sale of molasses. After the decontrol

molasses is being sold to distilleries, cattle feed manufactures etc. on

the open market.

131
3.7 Divisional Offices

There are divisional offices at the following ten places.

1. Eraiyur

2. V.Kalathur

3. Labbaikudikadu

4. Agaramseegur

5. Puduvettakudi

6. Thamaraipoondi

7. Perambalur

8. Krishnapuram

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 Registered(acres)

Average yield per

Total CaneArea
Season 2001-

crushed (M.T)

Pol in cane%
Qty. of cane

utilization %

Peak period

recovery %
Total loses
acre (M.T)
Capacity
2011
S.No
13,800
1,07,391
1 2001-02 PSM 49.95 27.40 11.77 2.44 9.97
2,04,419
OM

21,153
3,38,392
2 2002-03 PSM 65.58 26.00 11.39 2.45 9.49
1,52,000
OM

19,107
3,28,609
3 2003-04 PSM 88.50 24.50 10.80 2.04 10.00
1,28,122
OM

15,506
3,56,000
4 2004-05 PSM 86.76 26.00 11.52 1.77 9.90
96,011
OM

19,536
3,97,031
5 2005-06 PSM 84.55 26.00 11.20 1.82 9.60
36,703
OM

6 2006-07 25,720 8,59,633 166.50 36.00 10.12 1.79 9.29

19,200
5,83,298
7 2007-08 PSM 106.00 32.00 10.13 1.79 9.50
15,221
OM

8 2008-09 14,574 3,90,236 75.60 33.00 10.13 1.80 9.70

9 2009-10 15,000 5,30,000 103.00 35.00 10.12 1.80 9.30

10 2010-11 14,500 4,96,603 96.24 32.00 10.92 1.99 9.47

133
3.8 Welfare Measures for the Cane growers

Subsidies

 Transport subsidy- up to 10 km only the transport charges are

paid by the growers and the balance transport charges paid by

the mills.

 Crop insurance – Crop insurance is providing for all sugar can.

Roads

Road were laid under Sugarcane Road Development Scheme for

a distance of 48.6 km by spending Rs. 182 lakhs to connect the villages

with the main roads to enable the growers to transport the sugarcane to

the mills.

In addition roads for a distance of 46.6 km by spending Rs. 37.70

lakhs have been laid with the area development fund.

Loans

Loans were sanctioned to the cane growers under sugar

development fund for digging and deepening of open wells and bore-

wells, purchase of electric motors. So far a sum of Rs. 254.33 lakhs

received from the Government of India has been granted to 2828 cane

growers. The loan amounts are being recovered from the cane

proceeds. The mill is also arranging loan through Nationalized Banks for

digging of wells, purchase of pump sets, tyre carts etc

134
.

Sugar to Cane Grower

Sugar at concessional rate is being distributed to the cane

growers as the rate of ½ kg per tonne of cane supplied to the mills at

levy price, free of seals excise duty.

Diesel Bunk

A Consumer diesel bunk is functioning in the mills premises for

supplying diesel to the vehicles transporting cane to the mills.

135
3.9 Description of Sugar Manufacturing

The cane harvested in the fields is to be crushed within 24 hours

and the cane should be matured, clean, pest-free, disease-free, and roots-

free, without any foreign material. The cane brought to the factory is

weighed and stacked on the feeder table by the use of cane unloaders.

Then the cane is fed into the cane carrier and passes through kicker,

leveler, cutter, and fibrizer where the cane is leveled, cut into pieces and

fibrizered. This prepared cane is crushed in 6 Mill Tandem in series. Water

is added from the sixth mill. The crushing is done to recover maximum

quantity of sugar juice and minimum is lost in the bagasse. To avoid loss

due to bacterial effect in the milling, mill cleaning and mill sanitation

chemicals are added. Then the mixed juice collected in the mill house is

pumped to the boiling house.

Phosphoric acid is added to the raw juice to maintain the phosphate

content a 300-ppm level. In the boiling house the mixed juice is first

weighed and heated to 700 to 720 to eliminate the micro organism and for

optimum conditions for chemical reactions, in the juice sulphitation

vessel. The raw juice heated to 70o to 720 C is mixed with milk of lime

and neutralized by SO2 gas. SO2 gas neutralized the excess lime and

removes the coloring matters and improves the boiling characteristics of

massecuites. The chemically treated juice is pumped to the clarifier

through treated juice heaters where the juice is heated to 102o C to

improve the rate of settling. The treated juice is clarified in the clarifier
136
and clear juice is pumped to the evaporator station. A polymer chemical is

added to in the clarifier to improve the rate settling. The muddy juice in

the clarifier is taken into vacuum filter, where the residual juice is filtered

and taken for process. The filter cake obtained in the vacuum filter is

removed and used as manure in the field. The clear juice is pumped to

evaporator station through clear juice heater where the juice is heated to

1100 to 1200 C for improving the evaporation efficiency. The clear juice is

evaporated in the Semi-kestners and evaporators and 75% of water in the

juice is evaporated and syrup at 60 brix obtained. The syrup is pumped

into the syrup sulphitor where it is bleached with SO@ gas and PH is

maintained at 4.9 to 5.1. This sulphured syrup is pumped to pan floor for

pan boiling. There are 3 massecuites boiling systems (ABC massecuites)

‘ A ‘ massecuites is prepared by boiling with B seed, melt, A light

molasses and syrup. The sugar obtained from this massecuites in this

centrifugal station, which is the commercial sugar is sent to sugar

Godown. ‘ A ‘ light and ‘A’ heavy molasses are pumped to pan floor for

processing sugar. ‘B ‘ massecuites is prepared by boiling ‘A’ heavy

molasses with ‘B’ grain. ‘B’ seed is obtained from this; massecuites is

used for A massecuites boiling and excess B seed will be melted and

used for processing. B heavy molasses is pumped to the pan floor. C

mawssecuites is boiled with C light and B heavy molasses with C grain.

The C seed is melted and used for sugar processing. The C light

molasses is pumpted to the pan floor for C massecuites boiling. The final
137
molasses obtained from C massecuites curing in continuous centrifugal is

weighed and pumped to the molasses storage tanks.

The bagasse from the mill house is used a s fuel in the boilers and

high pressure stream is generated. There are two boilers of 20 tonnes per

hour capacity with working pressure of 20 kg per/sq.cm. and a boiler of 45

tonnes per hour capacity with working pressure of 32 kg/sq.cm. This

stream is used in the powerhouse to run the power turbines for generating

electricity. There are two 1.5 MW Alternators for producing electricity. The

high-pressure steam from the boilers is used to run the mill turbines. The

exhaust steam from the power turbine and mill turbine is used for the

boiling purpose in the boiling house.

3.10 System of Work

Details of strength of employees as per staffing pattern and existing

strength are given below.

The regular employees work throughout the year while the seasonal

employees will be normally working only during the crushing season i.e. for

about 6 months in a year.

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 However, depending upon the necessity sum of seasonal

employees will be recalled during of-season overhauling work. During the

lay-off period the employees are being paid retaining allowances as

detailed below:

Unskilled employees 30%

Semi Skilled Employees 40%

Skilled, Clerical and Supervisory employees 50%

3.11 Welfare Measures for the Employees

Residential Quarters

There are 206 quarters in the mills premises. All officers,

supervisory staff and essential categories of workers and staff have been

provided with residential quarters.

Free Electricity

Electricity is supplied free to the employees staying in the mill

quarters as detailed below.

a. Chief Executives 100 units

b. Chief officer and Deputy officers 75 units

c. Supervisory staff 50 units

d. Others 40 units.

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Bank

A branch of Indian Overseas Bank is functioning in the premises of

the mills for the benefit of employees of the mills and cane growers.

Post Office

A post office is functioning in the Premises of the mill.

Canteen

A canteen is functioning inside the Premises of the mill.

Co-operative Credit Society

An employee’s co-operative credit society is functioning inside mills.

The employees can avail themselves of a loan up to Rs. 80,000/- from the

society.

Consumer Co-operative Stores

An Employee’s Co-operative Society is functioning in the premises

of mills, where the employees of the mills can purchase their requirements

either by paying cash or on credit.

School

The mill runs a Higher Secondary School for the benefit of the

children of the employees, cane growers and general public of the nearby

140
villages. At present about 2,000 students are studying in the school.

There are about 70 on the staff of the school.

Recreation Club

There are four recreation clubs on the mills premises for officers,

staff, workers and ladies.

Dispensary

The mill has a dispensary where treatment is given free of cost to

the employees and their family members. The total cost of medicines

purchases a year is about Rs. 7 lakhs.

Bus Facility for School Children

The mill provides bus facility for the children of the employees and

the cane growers/ shareholders to go to school/ college in Perambalur and

also for bringing the children to the mills school at a nominal charge of Rs.

25/- per month per student.

Supply of Text Books.

The mill supplies textbooks and notebooks free to the children of the

employees.

141
Educational Loan

Interest-free educational loans are given to the employees of the mill

as detailed below. The loan amount is recovered in 10 equal monthly

installments.

 Polytechnic and other technical institutions-study Rs. 15000

 Arts College study Rs. 20000

 Professional College study Rs. 30000

Provision of Dish Antenna

There is a video club on the mills premises through which dish

antenna connections are provided to the quarters.

Uniform

Three sets of teri-cotton uniforms are given to the workers,

employees and officers once in two years. Shoes are being given to

eligible employees once in 2 years and chappals are given to others once

a year.

Free Tea

Tea is supplied at free of cost to all employees of the factory office

and those who work in the cane divisional offices are paid a tea allowance

of Rs. 180 per month.

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Night Shift Allowances

The mill pays night shift allowance to all the workers and staffs who

are attending night shifts @ Rs. 10 per night.

Provision of Rain Coat and Helmet

All the field staff and certain other categories of employees are

provided with raincoat and helmet by the mills as detailed below.

1.Field Staff like cane assistants One raincoat once in 3 years

and 1 helmet once in 5 years.

2. Regular workers in cane yard

Bagasse yard, Security wing,

Molasses Tank, E.T.P.Pump man One raincoat once in 3 years.

(Drinking water Supply)

Provision of Towels and Soaps

The workers working inside the factory are provided with one

Lifebuoy soap every month and handloom towel once in three months.

Education Tour

The employees are permitted to go on an education tour every year

for 3 days, special casual leave without pay cut. 1/6th of the employees

are covered every year.

143
Worker’s Education.

Worker’s education class is being conducted for the benefit of 25

workers every year, on cyclical basis.

Advance for Marriage and Fire Accident.

Marriage advance @ Rs. 50,000/- to a female worker or a daughter

of any employee and Rs. 25,000/- for the marriage of a male employee or

a son of any employee is being made. For seasonal employees 50% of

the amount is allowed. An amount of Rs. 5000 is given as a special

advance to the employees whose houses are affected by fire.

Voluntary Health Scheme

A voluntary health scheme has been introduced in the mills, which

provides financial assistance to the employees for treatment of certain

diseases such a renal failure and for cardiac treatment, transplantation of

kidney etc.

Medical Coverage

The workers who are affected by T.B., cancer or leprosy and those

who undergo kidney transplantation, heart bye-pass surgery and treatment

for brain tumor are granted leave with wages for a maximum period of one

year, besides reimbursement of the medical expenses during the period of

144
leave on production of Medical Certificate from a Recognized Medical

Institution.

Accident Benefits

Full wages are being paid to the workmen during the period of their

absence due to accident as against half monthly wages provided in the

Workmen’s Compensation Act. Further, the mills also meet the entire

expenditure on the medical treatment to the victim of the accident.

Insurance

Group Gratuity Scheme and Salary Scheme are implemented in the

mills. A sum of Rs. 2,00,000 is being paid to the employees in the event

of death.

Funeral Expenses

A sum of Rs. 10,000 is paid as funeral expenses to the employee’s

family in the event of death. The actual expenditure to carry the body of

the deceased employee to his native place from the place of death is

met by the mills.

Employment Opportunity for the Dependents of Deceased Employees

Employment is offered to the dependents of deceased employees of

this mill. in an extraordinary and special cases

145
Trade Unions

There are 18 Labour Unions in the mills. The names with their Registration

numbers are given below.

1. Perambalur Sugar Mills Employees Union, (CITU) 310/TRI

2. Workers Progressive Union (DMK) 330/TRI

3. Perambalur Sugar Mills Dr. Puratchi Thalaivi

Thozhilalar Sangam (ADMK) 1001/TRI

4. Nehru Sugar Mills National General Workers Union (INTUC) 1 507/TRI

5. United from Federation for Repatriate workers 285/TRI

6. Perambalur Sugar Mills Staff Association 599/TRI

7. Perambalur Sugar Mills Workers Union (AITUC) 681/TRI

8. Cane Assistant’s Association 646/TRI

9. Dr. Ambedkar Thozhilalar Sangam 890/TRI

10. Pattali. Thozhilalar Sangam (PMK) 863/TRI

11. B.P.Mandal Association 1037/TRI

12. Padhukavalar Sangam 778/TRI

13. Mazdoor Union 14/PBR

146
14. Marumalarchi Labour Federation (MDMK) 1061/TRI

15. Perambalur Sugar Mills Thozhilalar matrum

Paniyalargal Sangam 19/PBR

16. Thinakooli Thozhilalar Sangam 746/TRI

17. Driver’s Association ----

18. Technical Staff Association ----

147
 CHAPTER IV
OBJECTIVES AND HYPOTHESES

4.1 SCOPE OF THE STUDY

The scope of the study is to evaluate the effectiveness of existing

labour welfare measures practices and its impact on industrial relations of

the M/s Perambalur Sugar Mills Ltd, Eraiyur, Perambalur Dt., in

Tamilnadu. The reason for the selection of a public sector sugar mills is

that Tamilnadu State stands fourth in sugarcane production next to

Karnataka, Maharashtra and Uttar Pradesh. In the percentage of sugar

extracted from cane, Tamilnadu stands first (Sugar Industry

Performance Report – 2010-11). The Perambalur Sugar Mills Ltd in

Tamilnadu is a unique source which provides employment opportunity to

large number of rural populations that helps to enrich the standard of living

of the rural area.

4.2 OBJECTIVES OF THE STUDY

1) To understand the prevailing Industrial Relations in Perambalur

Sugar Mills Ltd., Eraiyur.

2) To study the level of satisfaction of employees with different Socio,

Economic and Demographic characteristics.

148
 3) To find out association between Independent Variables and

Industrial Relations.

4.3 HYPOTHESES

1) There is significant difference between Male employees and Female

Employees in their opinion on the prevailing Industrial Relations.

2) There is significant difference between Married employees and

Unmarried Employees in their opinion on the prevailing IR.

3) There is significant difference between Rural employees and Urban

Employees in their opinion on the prevailing Industrial Relations.

4) There is significant difference between Employees at different Age

Groups in their opinion on the prevailing Industrial Relations.

5) There is significant difference between Employees with different

Experience in their opinion on the prevailing Industrial Relations.

6) There is significant difference between Employees with different

Monthly incomes in their opinion on the prevailing Industrial

Relations.

7) There is no association between the opinions on Workers’

Participation and Communication Process.

8) There is no association between the opinions on Workers’

Participation and Welfare Measures..

9) There is no association between the opinions on Workers’

Participation and Trade Unions.

149
10) There is no association between the opinions on Workers’

Participation and Grievance Mechanism.

11) There is no association between the opinions on

Communication Process and Welfare Measures.

12) There is no association between the opinions on

Communication Process and Trade Unions.

13) There is no association between the opinions on

Communication Process and Grievance Mechanism.

14) There is no association between the opinions on Welfare

Measures and Trade Union Relations.

15) There is no association between the opinions on Welfare

Measures and Grievance Mechanism.

16) There is no association between the opinions on Trade Union

Relations and Grievance Mechanism.

17) There is no significant difference between Mean Ranks

towards the opinion on Workers’ Participation in Management.

18) There is no significant difference between Mean Ranks

towards the opinion on Communication Process.

19) There is no significant difference between Mean Ranks

towards the opinion on Welfare Measures.

20) There is no significant difference between Mean Ranks

towards the opinion on Trade Union Relations.

150
21) There is no significant difference between Mean Ranks

towards the opinion on Grievance Mechanism.

22) The Correlation coefficient is significant.

151
 CHAPTER V

RESEARCH METHODOLOGY

This section deals with the main aspects like scope of the

study, objectives of the study, research design, types of data collected,

questionnaires used, sampling technique adopted, period of data

collection, analytical tools used, hypothesis framed, cauterization and

limitations of the study.

5.1 RESEARCH DESIGN

The type of research design adopted for the purpose of the

present study is Descriptive type. Descriptive research design as the name

describe the characteristics of respondents, exhibits the relationship of

different variables adopted and makes one to understand the outcome of

different labour welfare measures and its impact on industrial relations.

Descriptive research is primarily concerned with the gathering of numeric,

statically reliable indicators like how much, how many, how often, what

items of study in the researcher’s interest. First descriptive research

requires a reasonably large number of respondents (i.e., sample size) to

supply the much needed information. Secondly, the selected sample of

respondents must be the representative of the parent population intended

for the research study. Thirdly, a standard questionnaire is to be adopted

for all sample respondents throughout the entire data collection process.

152
Data collection technique adopted for descriptive research necessitates

formal and structural interviews through methods like personal interviews,

mail surveys and telephonic interviews.

5.2 SOURCES OF DATA

The data for the study were collected from both the primary and

secondary sources. The secondary data required for the study were

collected from various books, journals, research articles, seminar reports,

study reports of expert committees and commissions, working papers,

records maintained in the industry and other published and unpublished

sources.

The Primary data pertaining to general information about the

Industry and its achievements, demographic variables, employee profile

and other independent variables, were collected from the selected

respondent by using the structured interview schedule. The entire text of

interview schedule is given in appendix 1. A pilot study was conducted for

finalising interview schedule. The schedule is pre tested to measure the

reliability of the data. Accordingly, necessary alterations were made in the

interview schedule.

153
5.3 VARIABLES USED

The variables taken for the study are classified as demographic

variables, factors of labour welfare measures and dimensions of industrial

relations. The five variables under study are as follows:

1. Workers’ Participation in Management

2. Communication

3. Labour Welfare Measures

4. Trade Union Relations

5. Grievance Mechanism.

5.4 PILOT SURVEY AND RELIABILITY TEST

Before the field survey was conducted, the consistency of the

information has become essential, for this purpose pilot survey was

conducted. A questionnaire has been prepared and supplied to 60

respondents of the sample units for extracting the tentative results and the

questionnaire was tested using cronbach alpha and the reliability

coefficient have obtained more than 0.8 which is considered to be reliable

for the variables which has five point scales. Based on the response given

154
by the respondents, the questionnaire has been modified in order to obtain

required information.

5.5 SAMPLE DESIGN

The study has been carried out among the employees including

Executives, Supervisors and Workers of M/S Perambalur Sugar Mills Ltd,

Eraiyur, Perambalur Dist. Sample selected for the study covers the

employees of various departments in M/S Perambalur Sugar Mills Ltd. All

the employees of the M/S Perambalur Sugar Mills Ltd constitute the

universe of the study. There are five categories of workers namely, skilled

workers, unskilled workers, supervisors, middle management and top

management. For the convenience sake, these categories are grouped

and classified into three namely, Workers, Supervisors and Executives.

As it is shown in the following table, there were 452 workers, 98

supervisors and 23 executives with a grand total of 573 employees at the

end of the year 2011. By using stratified - proportionate - random sampling

procedure, 158 Workers, 35 Supervisors and 7 Executives were selected.

Executives Supervisors Workers Total

Population size 23 98 452 573

Sample selected 16 68 316 400

155
 The researcher had developed a five-point rating scale (i.e. Likert

type scale) highly satisfied, satisfied, ‘neither’ satisfied ‘nor’ dissatisfied,

dissatisfied and highly dissatisfied, for scaling the answers to the

questions.

5.6 ANALYTICAL TOOLS

The collected primary data have been statistically processed,

classified and tabulated by using appropriate methods. Tables, figures and

statistical results have been derived with the help of the computer software

package called SPSS.

The statistical tools used for analysis are percentages, means,

profile analysis, analysis of variances (ANOVA), t-tests, correlation,

multiple regression analysis, chi-square test, SEM (Structural Equation

Model), Friedman test, etc. A post hoc analysis is also made were ever a

significant difference was found.

The following types of analysis have been made in the given order:

 Using nine selected items, a profile of the selected employees has

been drawn by adopting statistical tools like tables, percentages,

etc.

 Using ‘percentage scores’ based on the opinion of the employees on

item wise analysis of the variables have been made and evaluated

the effectiveness of Industrial Relations prevailing in the industry.

156
 ‘Chi-square test’ was used to examine the association between

demographic variables, employee profile with Industrial Relations

and its components and other independent variables.

 ‘Student’s t-test’ was employed for judging significant mean

difference in the marital status of employees, gender of employees,

etc., towards dimensions of Industrial Relations.

 ANOVA was applied to identify the significant mean difference

between more than two groups of categories of demographic

characteristics, employee profile, and other independent variables

with dependent variable- Industrial Relations.

 Correlation analysis has been used to examine the significant

relationship of independent variables with the dependent variable-

Industrial Relations.

 Multiple regression analysis has been employed to find the

relationship between demographic variables of employees, employee

profile and independent variables towards the dependent variable-

Industrial Relations.

157
5.7. CHAPTER ORDERING

Chapter I : Introduction

Chapter II : Review of Literature

Chapter III : Need for the study & Company Profile

Chapter IV: Objectives & Hypotheses

Chapter IV: Research Methodology

Chapter V : Analysis and Interpretation of Data

Chapter VI : Findings, Conclusions and Suggestions

158
5.8 LIMITATIONS OF THE STUDY

This study has the following limitations;

 The study is confined to industrial relations only. The other

related issues like Industrial disputes are beyond the purview

of the study.

 The Industrial Relations is analysed only on five dimentions,

namely, Workers’ Participation, Communication, Labour

Welfare Measures, Trade Union Relations and Grievance

Mechanism. Other dimensions are excluded in the analysis.

 The study has focused only on one Public Sector Sugar Mill

and it has not covered the other Public sector, Cooperative

and Private sector sugars mills at Tamilnadu.

 The findings and recommendation drawn in the study cannot

be universalized with the other industries in the country.

159
 CHAPTER - VI

RESULTS AND DISCUSSION

Analysis and interpretation is the life in the research process. The

aim of the analysis is to organize, classify and summarize the data
collected to better comprehended and interpreted for giving answers to the
questions that caused the research. Interpretation is to search for the
broader meaning of the findings. Interpretation fulfills Analysis; and
interpretation cannot be preceded without analysis. Hence, both are inter
dependent.

This chapter attempts to carry out a detailed analysis of the

collected data as per the objectives stated earlier. Hypotheses are formed
and tested based on the findings of the study by which interpretations and
conclusions are drawn. The Statistical techniques viz., Descriptive analysis
and inferential statistics etc are implemented for the analysis of the data
collected for the present study.

6.1. PERCENTAGE ANALYSIS ON SOCIO-DEMOGRAPHIC VALUES

One of the basic but effective statistical measures which is used to

describe the characteristics of the sample or population in totality is
Percentage analysis. The opinions of the employees about the Industrial
Relations may vary from one employee to another based on Socio –
demographic back ground. Hence, it is inevitable to understand the socio-
economic and personal elements which influence the employees’ opinion.
For this purpose the following Eight aspects related to them are collected
and analyzed here: (1) Sex (2) Marital Status (3) Urban/Rural Background
(4) Designation (5) Age of the respondent (6) Educational Qualification (7)
Total Experience and (8) Monthly income.

160
6.1.1. Sex
Percentage Analysis of Sex-wise distribution of the sample respondents is
given in Table 6.1.1.

Table - 6.1.1
Frequency Distribution of Male and Female Employees

Sex Frequency Percentage

Male 326 81.5

Female 74 18.5

Total 400 100.0

Source: Primary Data

The above table shows that, out of 400 employees interviewed 81.5
percent are male employees and 18.5 percent are female employees.

Figure - 6.1.1: Pie chart Male and Female Employees

161
6.1.2. Age
Percentage Analysis of Age wise distribution of sample respondents
is given in Table 6.1.2.
Table - 6.1.2
Frequency Distribution of Age-Wise data of Employees

Age Group Frequency Percentage

Below 30 186 46.5

30 – 40 146 36.5

Above 40 68 17.0

Total 400 100.0

Source: Primary Data
Below 30 years is the predominant age group with 46.5 percent of
employees followed between 30 and 40 years old at 36.5 percent and the
rest 17 percent in the age group of above 40 years old.

Figure - 6.1.2: Pie chart of Age-Wise data of Employees

162
6.1.3. Marital Status
Percentage Analysis of Marital Status distribution of sample respondents is
given in Table 6.1.3.
Table - 6.1.3
Frequency Distribution of Marital Status of Employees

Marital Status Frequency Percentage

Married 322 80.5

Unmarried 78 19.5

Total 400 100.0

Source: Primary Data
The Marital Status of the respondents’ shows that 80.5 percent of the
employees are married and 19.5 percent are unmarried.

Figure - 6.1.3: Pie chart of Marital Status of Employees

163
6.1.4. DOMICILE
Percentage Analysis of Rural / Urban Background distribution of
sample respondents is given in Table 6.1.4.
Table - 6.1.4
Frequency Distribution of Domicile of Employees

Place Frequency Percentage

Urban 128 32.0

Rural 272 68.0

Total 400 100.0

Source: Primary Data
Rural / Urban Background analysis of the respondents reveals that
majority 68 percent of the respondent are hail from rural areas were as 32
percent of the respondents belong to urban areas.

Figure - 6.1.4: Pie chart of Domicile of Employees

164
6.1.5. Designation
Percentage Analysis of Designation distribution of sample respondents is
given in Table 6.1.5.
Table - 5.1.5 Frequency Distribution of Designation of Employees

Designation Frequency Percentage

Executives 16 4.0

Supervisor 68 17.0

Worker 316 79.0

Total 400 100.0

Source: Primary Data
Analysis of the designation of the respondents shows that out of 400
employees interviewed, 79 percent are Executives, 17 percent of the
respondents are Supervisors and 4 percent of the respondents are
Workers.

Figure - 6.1.5: Pie chart of Designation of Employees

165
6.1.6 Qualification of Employees
It is general belief that highly qualified employees are easier to
handle, train and motivate. Percentage Analysis of Educational
qualification wise distribution of sample respondents is given in Table
5.1.6.
Table - 6.1.6
Frequency Distribution of Educational Qualification of Employees

Educational Qualification Frequency Percentage

Upto SSLC 102 25.5
HSC 216 54.0
Graduation 82 20.5
Total 400 100.0
Source: Primary Data
The above table reveals that, out of 400 employees interviewed, majority
of the respondents 62 percent are HSC followed by up to SSLC and
Graduates as 25.5 percent and 20.5 percent respectively.

Figure - 6.1.6: Pie chart of Educational Qualification of Employees

166
6.1.7. Experience
Percentage Analysis of Experience-wise distribution of sample
respondents is given in Table 6.1.7.
Table - 6.1.7
Frequency Distribution of Experience- of Respondents

Experience in Years Frequency Percentage

Below 5 years 125 31.25
5-10 years 210 52.5
Above 10 years 65 16.25
Total 400 100.0
Source: Primary Data
Experience-wise analysis of the respondents shows that 52.5
percent of the respondents have 5 to 10 years of experience, about 31.25
percent have below 5 years of experience and only 16.25 percent of
respondents have above 10 years experience.

Figure - 6.1.7: Pie chart of Experience- of Respondents

167
6.1.8. Monthly Income
Percentage Analysis of Monthly Income wise distribution of sample
respondents is given in Table 6.1.8.
Table - 6.1.8 Frequency Distribution of Monthly Income of employees

Monthly Income in Rs. Frequency Percentage

Below 10000 67 16.75
10001-17500 126 31.5
17501-25000 122 30.5
Above 25000 85 21.25
Total 400 100.0
Source: Primary Data
Monthly Income-wise analysis of the respondents shows that 31.5
percent of the respondents have Rs.10,001-17,500 income, 30.5 percent
of the respondents have an income of Rs.17,501- 25,000, 21.25 percent of
the respondents have an income of above Rs.25,000 and the remaining
16.75 percent of the respondents have below Rs.10,000 income.

Figure - 6.1.8: Bar Chart of Monthly Income of employees

168
The analysis of sample profile reveals the following facts:
1. The industry is pre dominated with the male employees (81.5 %)
2. More than 80.5% of the respondents are married.
3. Majority of the respondents (68%) hail from Rural Background.
4. Majority of the respondents (79 %) are workers.
5. Majority of the respondents (46.5 %) are in the age group of 30-40
years.
6. Majority of the respondents (54%) are having an educational
qualification of HSC.
7. More than 52 % of the respondents have 5-10 years of experience.
8. Majority of the respondents (62 %) have the monthly income of
Rs.10,001-25000.

6.2. ANALYSIS OF VARIABLES

The Attitude of employees towards Industrial Relations is
determined by analyzing their satisfaction levels in each of the selected
items under the Five variables identified for the purpose.

S. No. Identified Variables Sub- Component items

1 Workers’ Participation 7

2 Communication Process 7

3 Welfare Measures 20

4 Trade Union Relations 6

Grievance Mechanism
5 10
Procedures

169
6.2.1. Variable 1: Workers’ Participation in Managment

The following table shows the level of satisfaction of employees on

the Workers’ Participation in Management. .

Table - 6.2.1
Level of satisfaction of employees on the Workers’ Participation

Level of Satisfaction Frequency Percentage

Low 109 27.25

Moderate 202 50.5

High 89 22.25

Total 400 100.0

Source: Primary Data

The above table shows that, 50.5 percent employees have moderate level
of satisfaction, 27.25 percent employees have low level of satisfaction and
22.25 percent of the employees have high level of satisfaction on Workers’
Participation dimension of Industrial Relations. Hence it is seen that
majority of the employees in the organization have moderate level of
satisfaction on Workers’ Participation in Management.

170
6.2.2. Variable 2: Communication

The following table shows the level of satisfaction of employees on

Communication prevails in the concern.

Table - 6.2.2
Level of satisfaction of employees on Communication

Level of Satisfaction Frequency Percentage

Low 96 24.0

Moderate 219 54.75

High 85 21.25

Total 400 100.0

Source: Primary Data

The above table shows that, 54.75 percent employees have

moderate level of satisfaction, 24.0 percent employees have low level of
satisfaction and 21.25 percent of the employees have high level of
satisfaction on Communication dimension of Industrial Relations. Hence it
is seen that majority of the employees in the organization have moderate
level of satisfaction on Communication in Management.

171
6.2.3. Variable 3: Welfare Measures

The following table shows the level of satisfaction of employees on the

Welfare Measures provided in the organization.

Table - 6.2.3
Level of satisfaction of employees on Welfare Measures

Level of Satisfaction Frequency Percentage

Low 106 26.5

Moderate 198 49.5

High 96 24.0

Total 400 100.0

Source: Primary Data

The above table shows that, 49.5 percent employees have

moderate level of satisfaction, 26.5 percent employees have low level of
satisfaction and 24 percent of the employees have high level of
satisfaction on Welfare Measures dimension of Industrial Relations. Hence
it is seen that majority of the employees in the organization have moderate
level of satisfaction on Welfare Measures.

172
6.2.4. Variable 4: Trade Union Relations

The following table shows the level of satisfaction of employees on

the Trade Union Relations prevailing in the organization.

Table 6.2.4
Level of satisfaction of employees on Trade Union Relations

Level of Satisfaction Frequency Percentage

Low 102 25.5

Moderate 132 33.0

High 166 41.5

Total 400 100.0

Source: Primary Data

The above table shows that, 41.5 percent employees have High level of
satisfaction, 33.0 percent employees have Moderate level of satisfaction
and 25.5 percent of the employees have Low level of satisfaction on Trade
Union Relations dimension of Industrial Relations. Hence it is seen that
majority of the employees in the organization have moderate level of
satisfaction on Trade Union Relations.

173
6.2.5. Variable 5: Grievance Mechanism

The following table shows the level of satisfaction of employees on

the Grievance Mechanism employed to resolve the grievances of the
employees.
Table - 6.2.5
Level of satisfaction of employees on the Grievance Mechanism

Level of Satisfaction Frequency Percentage

Low 95 23.75

Moderate 185 46.25

High 120 30.0

Total 400 100.0

Source: Primary Data

The above table shows that, 46.5 percent employees have Moderate level
of satisfaction, 30.0 percent employees have High level of satisfaction and
23.75 percent of the employees have Low level of satisfaction on
Grievance Mechanism dimension of Industrial Relations. Hence it is seen
that majority of the employees in the organization have moderate level of
satisfaction on Grievance Mechanism.

174
6.3. INFERENTIAL ANALYSIS
In this section Student t test, ANOVA and Chi-square test are employed to
bring out inferences by testing proper Hypothesis:

HYPOTHESIS I

Null Hypothesis: There is no significant difference between Male and

Female employees with respect to dimensions of Industrial Relations..
Table - 6.3.1: Perceptions of Male and Female employees with respect
to Industrial Relations showing Mean, SD, t- significant level of mean

Sex
t p
Dimension of HRM Male Female
value value
Mean SD Mean SD
Workers’ Participation 39.54 2.33 38.45 2.36 0.356 0.722
Communication 18.95 1.68 19.34 1.98 1.341 0.181
Welfare Measures 68.95 2.84 68.36 3.87 1.130 0.260
Trade union Relations 20.82 2.24 20.79 2.37 0.079 0.937
Grievance Mechanism 24.14 1.95 24.13 1.74 0.051 0.960
Source: Primary Data
From the P – Value, it is concluded that there is no significant difference

between Male and Female employees with respect to all dimensions of

Industrial Relations.

175
HYPOTHESIS II
Null Hypothesis: There is no significant difference between Married and
Unmarried employees with respect to dimensions of Industrial Relations
Table - 6.3.2 Perceptions of Married and Unmarried employees with
respect to Industrial Relations showing Mean, SD, t- significant level
of mean

Status
Dimensions of t p
Married Unmarried
Industrial Relations value value
Mean SD Mean SD
Workers’ Participation 44.01 2.21 44.87 2.43 2.500 0.013

Communication 18.39 1.69 19.42 1.69 4.153 0.000

Welfare Measures 68.04 3.46 69.26 2.80 2.723 0.007

Trade union Relations 19.95 2.32 21.32 2.07 4.318 0.000

Grievance Mechanism 23.82 1.68 24.33 2.00 1.809 0.072

Source: Primary Data

From the P – Value, it is concluded that there is no significant difference

between Married and Unmarried employees with respect to Grievance

mechanism.

There is significant difference between Married and Unmarried employees

with respect to Workers’ Participation, Communication, Welfare Measures

and Trade Union Relations.

176
HYPOTHESIS III
Null Hypothesis: There is no significant difference between Places of
residence with respect to dimensions of Industrial Relations.
Table - 6.3.3 Perceptions of Rural and Urban employees with respect
to Industrial Relations showing Mean, SD, t- significant level of mean
Place
t p
Dimension of HRM Urban Rural
value value
Mean SD Mean SD
Workers’ Participation 44.59 2.45 44.45 2.13 0.356 0.722
Communication 18.95 1.68 19.34 1.98 1.341 0.181
Welfare Measures 68.95 2.84 68.36 3.87 1.130 0.260
Trade union Relations 20.82 2.24 20.79 2.37 0.079 0.937
Grievance Mechanism 24.14 1.95 24.13 1.74 0.051 0.960
Source: Primary Data
From the P – Value, it is concluded that there is no significant difference

between Urban and Rural employees with respect to all dimensions of

Industrial Relations.

177
HYPOTHESIS IV
Null Hypothesis: There is no significant difference between Age Group
with respect to dimension of Industrial Relations.
Table - 6.3.4 ANOVA for Significant Difference between Age Group
with Respect to Dimension of IR
Age Group in years
F p
Dimension of IR Below Above
30-40 value value
30 40
Workers’ Participation 44.19 44.87 44.42 1.625 0.199
Communication 18.79 19.22 19.02 1.089 0.339
Welfare Measures 68.08 69.14 69.16 2.576 0.079
Trade union Relations 20.05a 21.15b 21.18b 5.457 0.005
Grievance Mechanism 23.92 24.26 24.20 0.625 0.537
Note: 1. ** Denotes significant at 1% level Source: Primary Data
2. Different alphabet between Age Group of employee denotes
significant at 5% level using Duncan Multiple Range test
From the p-value, there is significant difference between age group with at

5 percent level but there is no significant difference between age respect

to Trade union Relation. Based on Duncan Multiple Range Test (DMRT)

the age group of below 30 years of employee are significantly differ with

30-40 and above 40 years group of 30-40 and above 40 in the dimension

of Trade union Relations.

There is no significant difference between Age Group with respect to

Workers’ Participation, Communication, Welfare Measures and Grievance

Mechanism.

178
HYPOTHESIS V
Null Hypothesis: There is no significant difference between Experiences
with respect to dimension of Industrial Relations.
Table - 6.3.5 ANOVA for Significant Difference between Experiences
with respect to Dimension of IR

Experience in years
F p
Dimension of IR Below Above
5-10 value value
5 10
Workers’ Participation 44.14 44.86 44.51 1.555 0.214
Communication 19.05 19.05 19.02 0.007 0.993
Welfare Measures 67.95a 68.94ab 69.44b 3.532 0.031*
Trade union Relations 20.14a 20.99b 21.19b 3.607 0.029*
Grievance Mechanism 24.05 23.94 24.51 1.639 0.197
Source: Primary Data
. From the p – value, it is concluded that there is significant difference
between Experiences with respect to Welfare Measure and Trade union
Relations. Based on Duncan Multiple Range Test (DMRT) the experience
of below 5 years employees are significantly differ from > 10 years at 5
percent level but the age group of 5-10 does not differ from <5 years and
5-10 years in Welfare Measure. In Trade union Relation the experience of
below 5 years of employee are significantly differ from other two groups at
5 percent level but there is no significant difference between experience of
5-10 years and above 10 years at 5 percent level
There is no significant difference between Experience with respect to
Workers’ Participation, Communication and Grievance Mechanism.

179
 HYPOTHESIS VI
Null Hypothesis: There is no significant difference between Monthly
Income with respect to dimension of Industrial Relations.
Table - 6.3.6 ANOVA for Significant Difference between Monthly
Income with Respect to Dimension of IR
Monthly Income (in Rs.)
Dimension of F p
HRM Below 10001- 17501- Above value value
10000 17500 25000 25000
Workers’ 44.23 44.71 44.88 44.47 0.745 0.527
Participation
Communication 19.23 18.97 18.90 19.00 0.352 0.788
Welfare 68.00a 68.86a 68.72a 70.38b 4.321 0.006
Measures
Trade union 20.23a 20.89a 20.60a 22.03b 4.903 0.003
Relations
Grievance 24.05 24.00 24.18 24.56 0.695 0.556
Mechanism
Source: Primary Data
Since p-value is less than 0.01 the Null hypothesis is rejected at 1
percent level of significance with regard to Welfare Measure and Trade
union Relations. Hence there is significant difference between monthly
income with respect to Welfare Measures and Trade union Relations.
Based on Duncan Multiple Range Test (DMRT) the monthly income of
above Rs.25,000 is significantly differ with all other income groups at 5
percent level but there is no significant difference between the monthly
income of below Rs.10,000, Rs.10,001-17,500 and Rs.17,501-25,000 in
both the above dimensions.
There is no significant difference between monthly income with
respect to Workers’ Participation, Communication and Grievance
Mechanism.

180
HYPOTHESIS VII
Null Hypothesis: There is no association between the opinion on
Workers’ Participation and Communication.
Table - 6.3.7 Chi-square table for Workers’ Participation and
Communication

Level of Level of Communication Chi-

square p
Worker’s Total
value
Participation Low Average High Value
40 30 8
78
Low (51.3%) (38.5%) (10.3%)
[33.3%] [18.5%] [6.8%]
72 88 60
220
Average (32.7%) (40.0%) (27.3%) 0.000
26.309
[60.0%] [54.3%] [50.8%] **
8 44 50
102
High (7.8%) (43.1%) (49.0%)
[6.7%] [27.2%] [42.4%]
Total 120 162 118 400
Note: 1. The value within ( ) refers to Row % Source: Primary Data
2. The value within [ ] refers to Column %
3. ** Denotes significant at 1% level

Since p-value less than 0.01, it is concluded that there is association

between the opinion of employees on Workers’ Participation and
Communication process.

181
HYPOTHESIS VIII
Null Hypothesis: There is no association between the opinion on Workers’
Participation and Welfare Measures.
Table - 6.3.8 Chi-square table for Workers’ Participation and Welfare
Measures

Level of Level of Welfare Measures Chi-

square p
Workers’ Averag Total
Low High value
Participation e Value
46 30 8
Low (54.8%) (35.7%) (9.5%) 84
[38.3%] [18.5%] [6.8%]
66 102 62
Average (28.7%) (44.3%) (27.0%) 130
31.809 0.000
[55.0%] [63.0%] [52.5%]
8 30 48
High (.3%) (34.9%) (55.8%) 86
[6.7%] [18.5%] [40.7%]
Total 120 162 118 400
Note: 1. The value within ( ) refers to Row % Source: Primary Data
2. The value within [ ] refers to Column %
3. ** Denotes significant at 1% level

Since p-value less than 0.01, it is concluded that there is association

between the opinion on Workers’ Participation and Welfare Measures.

182
HYPOTHESIS IX
Null Hypothesis: There is no association between the opinion on Workers’
Participation and Trade Union Relations.
Table - 6.3.9 Chi-square table for Workers’ Participation and
Trade Union Relations
Level of Trade Union
Level of Relations Chi-
Total
Workers’ square p-
Participation Averag Value value
Low High
e
48 28 4
Low (60.0%) (35.0%) (5.0%) 80
[40.0%] [17.3%] [3.4%]
64 102 78
Average (26.2%) (41.8%) (32.0%) 244 0.000
30.259
[53.3%] [63.0%] [66.1%] **
8 32 36
High (10.5%) (42.1%) (47.4%) 76
[6.7%] [19.8%] [30.5%]
Total 120 162 118 400
Note: 1. The value within ( ) refers to Row % Source: Primary Data
2. The value within [ ] refers to Column %
3. ** Denotes significant at 1% level

Since p-value less than 0.01, it is concluded that there is association

between the opinion on Workers’ Participation and Trade Union Relations.

183
HYPOTHESIS X
Null Hypothesis: There is no association between the opinion on Workers’
Participation and Grievance Mechanism.
Table - 6.3.10 Chi-square table for Workers’ Participation and
Grievance Mechanism
Level of Grievance
Level of Mechanism Chi-
square p
Workers’ Total
Averag value
Participation Low High Value
e
66 38 8
Low (58.9%) (33.9%) (7.1%) 112
[55.0%] [23.5%] [6.8%]
38 84 56
Average (21.3%) (47.2%) (31.5%) 178 0.000
40.794
[31.7%] [51.9%] [47.5%] **
16 40 54
High (14.5%) (36.4%) (49.1%) 110
[13.3%] [24.7%] [45.8%]
Total 120 162 118 400
Note: 1. The value within ( ) refers to Row % Source: Primary Data
2. The value within [ ] refers to Column %
3. ** Denotes significant at 1% level

Since p-value less than 0.01, it is concluded that there is association

between the opinion on Workers’ Participation and Grievance Mechanism.

184
HYPOTHESIS XI
Null Hypothesis: There is no association between the opinion on
Communication and Welfare Measures.
Table - 6.3.11 Chi-square table for Communication and
Welfare Measures

Level of Level of Welfare Measures Chi-

square p
Communicati Averag Total
Low High value
-on e Value
50 22 6
Low (64.1%) (28.2%) (7.7%) 78
[43.9%] [16.9%] [3.8%]
56 88 76
Average (25.5%) (40.0%) (34.5%) 220 0.000
55.152
[49.1%] [67.7%] [48.7%] **
8 20 74
High (7.8%) (19.6%) (72.5%) 102
[7.0%] [15.4%] [47.4%]
Total 114 130 156 400
Note: 1. The value within ( ) refers to Row % Source: Primary Data
2. The value within [ ] refers to Column %
3. ** Denotes significant at 1% level

Since p-value less than 0.01, it is concluded that there is association

between the opinion on Communication and Welfare Measures.

185
HYPOTHESIS XII
Null Hypothesis: There is no association between the opinion on
Communication and Trade Union Relations.
Table - 6.3.12 Chi-square table for Communication and
Trade Union Relations
Level of Trade Union
Level of Relations Chi-
square p
Communic Total
Averag value
ation Low High Value
e
50 20 10
Low (62.5%) (25.0%) (12.5%) 80
[43.9%] [15.4%] [6.4%]
60 92 92
Average (24.6%) (37.7%) (37.7%) 244 0.000*
43.962
[52.6%] [70.8%] [59.0%] *
4 18 54
High (5.3%) (23.7%) (71.1%) 38
[3.5%] [13.8%] [34.6%]
Total 57 65 78 200
Note: 1. The value within ( ) refers to Row % Source: Primary Data
2. The value within [ ] refers to Column %
3. ** Denotes significant at 1% level

Since p-value less than 0.01, it is concluded that there is association

between the opinion on Communication and Trade Union Relations.

186
HYPOTHESIS XIII
Null Hypothesis: There is no association between the opinion on
Communication and Grievance Mechanism.
Table - 6.3.13 Chi-square table for Communication and
Grievance Mechanism
Level of Grievance
Level of Chi-
Mechanism square p
Communic Total
value
-ation Value
Low Average High
44 28 12
Low (52.4%) (33.3%) (14.3%) 84
[38.6%] [21.5%] [7.7%]
62 84 84
Average (27.0%) (36.5%) (36.5%) 230 0.000*
33.610
[54.4%] [64.6%] [53.8%] *
8 18 60
High (9.3%) (20.9%) (69.8%) 86
[7.0%] [13.8%] [38.5%]
Total 114 130 156 400
Note: 1. The value within ( ) refers to Row % Source: Primary Data
2. The value within [ ] refers to Column %
3. ** Denotes significant at 1% level

Since p-value less than 0.01, it is concluded that there is association

between the opinion on Communication and Grievance Mechanism.

187
HYPOTHESIS XIV
Null Hypothesis: There is no association between the opinion on Welfare
Measures and Trade Union Relations.

Table - 6.3.14 Chi-square table for Welfare Measures and

Trade Union Relations
Level of Trade Union
Level of Relations Chi-
square p
Welfare Total
Averag value
Measures Low High Value
e
58 42 12
Low (51.8%) (37.5%) (10.7%) 112
[50.9%] [32.3%] [7.7%]
46 62 70
Average (25.8%) (34.8%) (39.3%) 178 0.000
42.817
[40.4%] [47.7%] [44.9%] **
10 26 74
High (9.1%) (23.6%) (67.3%) 110
[8.8%] [20.0%] [47.4%]
Total 114 130 156 400
Note: 1. The value within ( ) refers to Row % Source: Primary Data
2. The value within [ ] refers to Column %
3. ** Denotes significant at 1% level

Since p-value less than 0.01, it is concluded that there is association

between the opinion on Welfare Measures and Trade Union Relations.

188
HYPOTHESIS XV
Null Hypothesis: There is no association between the opinion on Welfare
Measures and Grievance Mechanism.
Table - 6.3.15 Chi-square table for Welfare Measures and
Grievance Mechanism

Level of Level of Grievance Chi-

Mechanism square p
Welfare Total
value
Measures Low Average High Value
30 28 20
Low (38.5%) (35.9%) (25.6%) 78
[30.6%] [15.4%] [19.5%]
56 108 56
Average (25.5%) (49.1%) (25.5%) 220 0.021
11.562
[57.1%] [59.3%] [46.7%] *
12 46 44
High (11.8%) (45.1%) (43.1%) 102
[12.2%] [25.3%] [36.7%]
Total 98 182 120 400
Note: 1. The value within ( ) refers to Row % Source: Primary Data
2. The value within [ ] refers to Column %
3. ** Denotes significant at 1% level

Since p-value less than 0.01, it is concluded that there is association

between the opinion on Welfare Measures and Grievance Mechanism.

189
HYPOTHESIS XVI
Null Hypothesis: There is no association between the opinion on Trade
Union Relations and Grievance Mechanism.

Table - 6.3.16 Chi-square table for Trade Union Relations and

Grievance Mechanism.

Level of Level of Grievance Chi-

Mechanism square p
Trade Union Total
value
Relations Low Average High Value
18 17 7
Low (42.9%) (40.5%) (16.7%) 42
[36.7%] [18.7%] [11.7%]
26 53 36
Average (22.6%) (46.1%) (31.3%) 115 0.011
13.057
[53.1%] [58.2%] [60.0%] *
5 21 17
High (11.6%) (48.8%) (39.5%) 43
[10.2%] [23.1%] [28.3%]
Total 49 91 60 200
Note: 1. The value within ( ) refers to Row % Source: Primary Data
2. The value within [ ] refers to Column %
3. ** Denotes significant at 1% level

Since p-value less than 0.01, it is concluded that there is association

between the opinion on Welfare Measures and Grievance Mechanism.

190
HYPOTHESIS XVII
Null Hypothesis: There is no significant difference between mean ranks
towards opinion on Workers Participation in Management.
Table - 6.3.17 Friedman test for significant difference between mean
ranks towards opinion on Workers’ Participation in Management.
Chi-
Mean p
Workers’ Participation in Management Square
Rank value
value
Employee participation improves the morale
of the employee which leads to better 4.97
relations
Employee participation enhances the sense
of give and take which contributes to better 4.28
relations
Employee participation promotes the mutual
negotiation and resolution of conflicts
4.28
between management and employees, thus
ensuring peaceful industrial relations
Employee participation in management
makes the managers feel threatened as 3.77 62.314 0.000
their subordinates are equal with them **
Employee participation foster organizational
image by making the employee and the
4.81
management come closer, stay closer and
act together
Employee participation is a recognition of
employee capability to share management 4.31
responsibility
Employee participation enhance employee
4.44
commitment to the organization
Note: ** Denotes significant at 1% level Source: Primary Data

Since the p-value is less than 0.01, the null hypothesis is rejected at 1
percent level of significance. Hence it is concluded that there is significant
difference between mean ranks towards opinion on Workers’ Participation
191
in Management. Based on mean rank present Improvement in the morale
of employees (4.97) is most important factor in Workers’ Participation in
Management followed by Employees and management comes closer
(4.81), Enhances employee commitment to the organization (4.44),
Recognition of employee capability (4.31), Promotes the mutual
negotiation and resolution of conflicts (4.28) and Makes the managers feel
threatened as their subordinates are equal with them (3.77)

192
HYPOTHESIS XVIII
Null Hypothesis: There is no significant difference between mean ranks
towards opinion on Communication Process.
Table - 6.3.18 Friedman test for significant difference between mean
ranks towards opinion on Communication Process.
Chi-
Mean p
Communication Process Square
Rank value
value
Daily information from Supervisors 7.10
Your ideas are passed to the top 6.70
Feel comfortable with supervisors 7.33
Few people hoard information 6.98 127.644 0.000**
Too many gate keepers 7.06
Information are accurate & timely 7.56
More Informal information 5.30
Note: ** Denotes significant at 1% level Source: Primary Data

Since the p-value is less than 0.01, the null hypothesis is rejected at 1
percent level of significance. Hence it is concluded that there is significant
difference between the opinions on Communication Process. Based on
mean rank present Information is accurate and timely (7.56) is the most
important factor in Communication Process which is followed by Feeling
comfortable with the supervisors, Daily information from the supervisors
(7.10), Too many Gate Keepers (7.06), Few people hoarding information
(6.98), The workers’ ideas are passed to the top(6.70) and the least
important factor is More Informal information (5.30).

193
HYPOTHESIS XIX
Null Hypothesis: There is no significant difference between mean ranks
towards opinion on Welfare Measures.
Table - 6.3.19 Friedman test for significant difference between mean
ranks towards opinion on Welfare Measures.

Chi-
Welfare measures Mean Rank p-value
Square
I am satisfied with canteen facility 8.77
I am satisfied with drinking water 10.91
I am satisfied with lunch room and rest
9.90
room
I am satisfied with recreational facilities 10.14
I am satisfied with library 10.95
I am satisfied with wash basin, toilets
11.28
and urinals
I am satisfied with supply of uniform 10.29
I am satisfied with sitting facilities 10.66
I am satisfied with gloves and eye 10.28 51.307 0.000**
I am satisfied with cycle sheds 9.89
I am satisfied with masks, hard
10.41
protective hats and glasses
I am satisfied with first aid box 11.29
I am satisfied with fire fighting
10.23
equipments
I am satisfied with ambulance facility 10.93
I am satisfied with transport facility 11.13
I am satisfied with spittoons 10.80

I am satisfied with housing facility 10.67

Note: ** Denotes significant at 1% level Source: Primary Data

Since the p-value is less than 0.01, the null hypothesis is rejected at 1
percent level of significance. Hence it is concluded that there is significant

194
difference between the opinions on Welfare Measures. Based on mean
rank, present First Aid Box (11.29), Wash Basin, toilet and urinals (11.28),
Transport facility (11.13) and Library (10.95) are considered to be very
important factors. However, Canteen (8.77), Cycle shed (9.89) and Lunch
room and Rest room (9.90) are the least important factors.

195
HYPOTHESIS XX
Null Hypothesis: There is no significant difference between mean ranks
towards opinion on Trade Union Relations.
Table - 6.3.20 Friedman test for significant difference between mean
ranks towards opinion on Trade Union Relations.
Mean Chi- p
Trade Union relations Rank Square value

I am proud that, I am a member of trade union 3.76

I agree with the functioning of our union 3.15

I think that unions are politically motivated 4.05
Union fights for providing better labour
3.09
welfare amenities
All union joint together for legitimate demands 3.57
Unions try to promote peace in the
3.40
organization
My views are given importance by labour
3.77
leaders
Union membership is a vital factor for job
4.35 54.981 0.000**
security
I will approve all the policies of trade union 3.55
My union leaders consult with me before
3.22
taking important decisions
My union leaders provide all the information
relating to the negotiations with the 4.35
management
My union leader conveys our grievances to
4.22
the management regularly
Union maintains cordial relationship with the
3.11
management
Healthy union activities are always
3.99
encouraged
Note: ** Denotes significant at 1% level Source: Primary Data
Since the p-value is less than 0.01, the null hypothesis is rejected at 1
percent level of significance. Hence it is concluded that there is significant
difference between opinions on Trade Union relations. Based on mean
rank present Union membership is for Job security (4.35), Unions sharing

196
information on Negotiations (4.35), Unions conveying grievances to the
Management (4.05) are the most important factors in Trade Union
relations and Agreeing with union with all its functions (3.15), Union
maintaining cordial relationship with the Management (3.11) and Union
fighting for better Welfare Measures (3.09) are least important factors.

197
HYPOTHESIS XXI
Null Hypothesis: There is no significant difference between mean ranks
towards opinion on Grievance Mechanism.
Table - 6.3.21 Friedman test for significant difference between mean
ranks towards opinion on Grievance Mechanism.
Chi-
Mean p
Grievance Mechanism Square
Rank value
value
Orientation on Grievance mechanism is
9.03
given during induction
Regular monthly meetings are conducted
5.19
to settle down the grievances
Workers’ feedback is accepted 5.15
Confidentiality is maintained 6.76 1003.970 0.000**
Suggestion box is located 8.23
Whistle blowers are protected 9.08
Workers are educated of the process 8.82
The system of recording is good 10.86
Note: ** Denotes significant at 1% level Source: Primary Data

Since p-value is less than 0.01, the null hypothesis is rejected at 1 percent
level of significance. Hence it is concluded that there is significant
difference between opinions on Grievance Procedure. Based on mean
rank, System of Recording (10.86) is the most important factor which is
followed by Whistle Blowers’ protection (9.08), Orientation during Induction
(9.03), Educating workers about the process (8.82), Location of suggestion
box (8.23), Maintaining Confidentiality (6.76), Conducting Regular monthly
meetings (5.19) and the least important factor is concluded to be Accepting
workers’ feedback (5.15)..

198
 Hypothesis XXII
Null Hypothesis: There is relationship between two Dimensions
Table – 6.3.22
Correlation Coefficient between Dimensions of Industrial Relations

Dimensions of Industrial Workers’ Communication Welfare Trade Union Grievance

Relations Participation Process Measures Relations Mechanism

Workers’ Participation 1.000 0.167* 0.341** 0.328** 0.363**

Communication Process - 1.000 0.365** 0.268** 0.490**

Welfare Measures - - 1.000 0.426** 0.486**

Trade Union Relations - - - 1.000 0.536**

Grievance Mechanism - - - - 1.000

* Correlation is significant at the 0.05 level (2-tailed). Source: Primary data
** Correlation is significant at the 0.01 level (2-tailed).

199
The Correlation Coefficient between Workers’ Participation and
Communication Process is 0.167 which indicate 17 percentage positive
relationships between these two dimensions and is significant at 5% level.

The Correlation Coefficient between Workers’ Participation and Promotion and

Welfare measures is 0.341 which indicate 34 percentage positive relationships
these two dimensions and is significant at 1% level.

The Correlation Coefficient between Workers’ Participation and Trade Union

relations is 0.328 which indicate 32 percentage positive relationships between
these two dimensions and is significant at 1% level.

The Correlation Coefficient between Workers’ Participation and Grievance

Mechanism is 0.363 which indicate 36 percentage positive relationships
between these two dimensions and is significant at 1% level.

The Correlation Coefficient between Communication Process and Welfare

Measures is 0.365 which indicate 37 percentage positive relationships
between these two dimensions and is significant at 1% level.

The Correlation Coefficient between Communication Process and Trade

Union Relations is 0.268 which indicate 27 percentage positive relationships
between these two dimensions and is significant at 1% level.

The Correlation Coefficient between Communication Process and Grievance

Mechanisms is 0.490 which indicate 49 percentage positive relationships
between these two dimensions and is significant at 1% level

The Correlation Coefficient between Welfare Measures and Trade Union

200
Relations is 0.426 which indicate 43 percentage positive relationships
between these two dimensions and is significant at 1% level.

The Correlation Coefficient between Welfare Measures and Grievance

Mechanisms is 0.486 which indicate 49 percentage positive relationships
between these two dimensions and is significant at 1% level.

The Correlation Coefficient between Trade Union Relations and Grievance

Mechanism is 0.536 which indicate 54 percentage positive relationships
between these two dimensions and is significant at 1% level

REGRESSION ANALYSIS OF JOB SATISFACTION ON VARIOUS

DEMOGRAPHIC FACTORS

Regression is the determination of statistical relationship between two or more

variables. In simple regression two variables are used. One variable
(independent) is the cause of the behaviour of another one (dependent).
When there are more than two independent variables the analysis concerning
relationship is known as multiple correlations and the equation describing
such relationship is called as the multiple regression equation.
Regression analysis is concerned with the derivation of an appropriate
mathematical expression is derived for finding values of a dependent variable
on the basis of independent variable. It is thus designed to examine the
relationship of a variable Y to a set of other variables X1, X2, X3……….Xn. the
most commonly used linear equation in
Y = b1 X1 + b2 X2 +……+ bn Xn + b0
Here Y is the dependent variable, which is to be found. X1 , X2 ,… and
Xn are the known independent variables with which predictions are to be made
and b1, b2 ,….bn are Regression coefficients.

201
 Let us have the dependent variable and independent variables as
follows:
Dependent variable : Job satisfaction (Y)
Independent variables
1) Sex (X1)
2) Age group in years (X2)
3) Marital status (X3)
4) Place (X4)
5) Designation (X5)
6) Educational qualification (X6)
7) Experience in years (X7)
8) Monthly income (X8)
Multiple R- value : 0.804
R -Square value : 0.646
F- value : 38.510
p- value : 0.000**

202
 Table – 6.3.23
Variables in the Multiple Regression Analysis
Unstandardized Standardized t p
Variables S.E. of B
co-efficient co-efficient value value
Constant 36.212 1.810 20.005 0.000**
X1 -1.625 0.506 -0.200 -3.211 0.002**
X2 -0.691 0.569 -0.054 -1.215 0.226
X3 1.546 0.378 0.208 4.086 0.000**
X4 0.891 0.319 0.206 2.793 0.006**
X5 3.433 0.306 0.526 11.217 0.000**
X6 0.641 0.244 0.125 2.631 0.009**
X7 0.209 0.347 0.050 0.601 0.548
X8 0.478 0.467 0.137 2.856 0.005**
* Significant at the 0.05 level. Source: Primary data
** Significant at the 0.01 level.

The multiple correlation coefficient is 0.804 measures the degree of

relationship between the actual values and the predicted values of the Trade
Union Relations. As the predicted values are obtained as a linear combination
of Sex (X1), Age (X2), Marital status (X3), Place (X4), Designation(X5),
Educational qualification (X6), Experience in years (X7) and Monthly income
(X8), the coefficient value of 0.804 indicates that the relationship between
Trade Union Relations and the Eight independent variables is quite strong and
positive.
The Coefficient of Determination R-square measures the goodness-of-fit of
the estimated Sample Regression Plane (SRP) in terms of the proportion of
the variation in the dependent variables explained by the fitted sample
regression equation. Thus, the value of R square is 0.646 simply means that
about 64.6% of the variation in Trade Union Relations is explained by the
estimated SRP that uses Sex (X1), Age (X2), Marital status (X3), Place (X4),
Designation(X5), Educational qualification (X6), Experience in years (X7) and
Monthly income (X8) as the independent variables and R square value is
significant at 1 % level.

203
The multiple regression equation is
Y = 36.212 - 1.625X1 - 0.691X2 + 1.546X3 + 0.891X4 + 3.433X5 +
0.641X6 + 0.209X7 + 0.478X8
The coefficient of X1 is -1.625 represents the partial effect of Sex on Trade
Union Relations, holding the other independent variables as constant. The
estimated negative sign implies that such effect is negative that Trade Union
Relations would decrease by 1.625 for every unit increase in Sex and this
coefficient value is significant at 1% level.
The coefficient of X2 is -0.691 represents the partial effect of on Age, holding
other independent variable as constant. The estimated negative sign implies
that such effect is negative that Trade Union Relations would decrease by -
0.691 for every unit decrease in Age and this coefficient value is not significant
at 5% level.
The coefficient of X3 is 1.546 represents the partial effect of Marital status on
Trade Union Relations, holding the other independent variables as constant.
The estimated positive sign implies that such effect is positive that Trade
Union Relations would increase by 1.546 for every unit increase in Marital
status and this coefficient value is significant at 1% level.
The coefficient of X4 is 0.891 represents the partial effect of Place of birth on
Trade Union Relations, holding the other independent variables as constant.
The estimated positive sign implies that such effect is positive that Trade
Union Relations would increase by 0.891 for every unit increase in Place of
birth and this coefficient value is significant at 1% level.
The coefficient of X5 is 3.433 represents the partial effect of Designation on
Trade Union Relations, holding the other independent variables as constant.
The estimated positive sign implies that such effect is positive that Trade
Union Relations would increase by 3.433 for every unit increase in
Designation and this coefficient value is significant at 1% level.
The coefficient of X6 is 0.641 represents the partial effect of Educational
qualification on Trade Union Relations, holding the other independent

204
variables as constant. The estimated positive sign implies that such effect is
positive that Trade Union Relations would increase by 0.641 for every unit
increase in Educational qualification and this coefficient value is significant at
1% level.
The coefficient of X7 is 0.209 represents the partial effect of Experience in
years on Trade Union Relations, holding the other independent variables as
constant. The estimated positive sign implies that such effect is positive that
Trade Union Relations would increase by 0.209 for every unit increase in
Experience in years and this coefficient value is not significant at 5% level.
The coefficient of X9 is 0.478 represents the partial effect of Monthly income
on Trade Union Relations, holding the other independent variables as
constant. The estimated positive sign implies that such effect is positive that
Trade Union Relations would increase by 0.209 for every unit increase in
Monthly income and this coefficient value is not significant at 5% level.

205
 CHAPTER - VII

FINDINGS AND CONCLUSIONS

The findings relating to the analysis of demographic and employee

profile with regard to Industrial Relations are discussed below. The findings

related to the other independent variables like Workers’ Participation in

Management, Communication Process, Welfare Measures, Trade Union

Relations and Grievance Mechanism that influence the Industrial Relations at

M/S Perambalur Sugar Mills Ltd, Eraiyur, Perambalur Dist.

7.1 Distribution of Demographic Variables

It is evident from the descriptive statistics of the employee’s

demographic characteristics, that majority of the employees taking part in this

study were 81.5% male; employees aged below 30 are 47%; in terms of

marital status 80.5% employees were married; in terms of educational

qualification 54% employees had completed HSC; in terms of location 68%

employees were from rural place.

7.2 Distribution of Employee Profile Variables

It is clear from the descriptive statistics of the employee’s profile, the

employee’s job positions are categorized as Executives, Supervisors and

Workers. Majority of the employees 74% were engaged in workers role.

Regarding their experience, 52% had 5 to 10 years experience. Around 62%

are in the income of Rs 10000 to 25000. Majority of the employees

179(89.5%) reached their present post through direct recruitment, 6.5% of the

206
employees reached the post through promotion and only 4% of the employees

reached the post through deputation.

7.3 Distribution of Independent Variables

1. It is evident from the descriptive statistics of the independent variables

under this study, 50.5 per cent of the employees had moderate level of

satisfaction, 22.75 per cent of the employees had high level of satisfaction

and 27.25 per cent of the employees had low level of satisfaction regarding

the Workers’ Participation in Management.

2. It was found that 54.75 per cent of the employees had moderate level of

satisfaction, 21.5 per cent had high level of satisfaction and 24.0 per cent

of the employees had low level of satisfaction regarding the

Communication Process.

3. It was found that 49.5 per cent of the employees had moderate level of

satisfaction, 24 per cent had high level of satisfaction and 226.5 per cent of

the employees had low level of satisfaction regarding the Welfare

Measures.

4. It was found that 33.0 per cent of the employees had moderate level of

satisfaction, 41.25 per cent had high level of satisfaction and 25.5 per cent

of the employees had low level of satisfaction regarding the Trade Union

Relations.

5. It was found that 46.25 per cent of the employees had moderate level of

satisfaction, 30 per cent had high level of satisfaction and 23.75 per cent of

207
 the employees had low level of satisfaction regarding Grievance

Mechanism.

6. The Student’s t-test for independent samples on two tailed significance for

the gender is not significant showing that there is no significant difference

in Workers’ Participation among the employees between the two group of sex (t

= 0.356, p>0.05). The two taileded significance for the gender is not

significant showing that there is no significant difference in Communication

Process among the employees between the two group of sex (t = 1.341,

p>0.05). The two taileded significance for the gender is not significant

showing that there is no significant difference in Welfare Measures among

the employees between the two group of sex (t = 1.130, p>0.05). The two

tailed significance for the gender is not significant showing that there is no

significant difference in Trade Union Relations among the employees

between the two group of sex (t = 0.079, p>0.05). The two tailed significance

for the gender is not significant showing that there is no significant

difference in Grievance Mechanism among the employees between the

two group of sex (t = 0.051, p>0.05).

7. The Student’s t-test for independent samples on two tailed significance for

the marital status is significant showing that there is no significant

difference in Workers’ Participation among the employees between the two

group of marital status (t = 2.500, p<0.05). The two tailed significance for

the marital status is not significant showing that there is significant difference

in Communication Process among the employees between the two group of

208
 marital status (t = 4.153, p<0.05). The two tailed significance for the marital

status is not significant showing that there is significant difference in

Welfare Measures among the employees between the two group of marital

status (t = 2.723, p<0.05). The two tailed significance for the marital status

is significant showing that there is no significant difference in Grievance

Mechanism among the employees between the two group of marital status

(t = 1.809, p<0.05).

8. The Student’s t-test for independent samples on two tailed significance for

the place is not significant showing that there is no significant difference in

Workers’ Participation among the employees between the two group of

place (t = 0.356, p>0.05). The two tailed significance for the place is not

significant showing that there is a significant difference in Communication

Process among the employees between the two group of place (t = 1.341,

p>0.05). The two tailed significance for the place is significant showing that

there is no significant difference in Welfare Measures among the

employees between the two group of place (t = 1.130, p>0.01). The two

tailed significance for the place is no significant showing that there is a

significant difference in Trade Union Relations among the employees

between the two group of place (t = 0.079, p>0.01). The two tailed

significance for the place is no significant showing that there is a significant

difference in Grievance Mechanism among the employees between the

two group of place (t = 0.051, p>0.01).

209
9. The results of Fisher’s F-test (One way ANOVA) to test the significant

differences among the various groups of age with the various levels of the

dimensions of Industrial Relations shows that, the dimension Workers’

Participation at three different levels (Low, Average, High) is not

statistically significant across the age of employees (F=1.625, p>0.05); the

dimension Communication Process at three different levels (Low, Average,

High) is not statistically significant across the age of employees (F=1.089,

p>0.05); the dimension Welfare Measures at three different levels (Low,

Average, High) is not statistically significant across the age of employees

(F= 2.576, p>0.05); the dimension Trade Union Relations at three different

levels (Low, Average, High) is statistically significant across the age of

employees (F=5.457, p<0.05); the dimension Grievance Mechanism at

three different levels (Low, Average, High) is statistically significant across

the age of employees (F=40.625, p>0.01).

10. The results of Fisher’s F-test (One way ANOVA) to test the significant

differences among the various groups of Experience with the various levels

of the dimensions of Industrial Relations shows that, the dimension

Workers’ Participation at three different levels (Low, Average, High) is not

statistically significant across the age of employees (F=1.555, p>0.05); the

dimension Communication Process at three different levels (Low, Average,

High) is not statistically significant across the age of employees (F=0.007,

p>0.05); the dimension Welfare Measures at three different levels (Low,

Average, High) is statistically significant across the age of employees (F=

210
 3.532, p<0.05); the dimension Trade Union Relations at three different

levels (Low, Average, High) is not statistically significant across the age of

employees (F=1.639, p>0.05); the dimension Grievance Mechanism at

three different levels (Low, Average, High) is statistically significant across

the age of employees (F=40.625, p>0.01).

11. The results of Fisher’s F-test (One way ANOVA) to test the significant

differences among the various groups of Income Levels with the various

levels of the dimensions of Industrial Relations shows that, the dimension

Workers’ Participation at three different levels (Low, Average, High) is not

statistically significant across the age of employees (F=0.745, p>0.05); the

dimension Communication Process at three different levels (Low, Average,

High) is not statistically significant across the age of employees (F=0.352,

p>0.05); the dimension Welfare Measures at three different levels (Low,

Average, High) is statistically significant across the age of employees (F=

4.321, p<0.05); the dimension Trade Union Relations at three different

levels (Low, Average, High) is statistically significant across the age of

employees (F=4.903, p<0.05); the dimension Grievance Mechanism at

three different levels (Low, Average, High) is not statistically significant

across the age of employees (F=0.625, p>0.01).

12. The results of chi-square test for testing the association between the

Workers’ Participation and the Communication Process shows that the two

dimensions are positively associated with (χ2=26.309, p<0.01).

211
13. The results of chi-square test for testing the association between the

Workers’ Participation and the Welfare Measures shows that the two

dimensions are positively associated with (χ2=31.809, p<0.01).

14. The results of chi-square test for testing the association between the

Workers’ Participation and the Trade Union Relations shows that the two

dimensions are positively associated with (χ2=30.259, p<0.01).

15. The results of chi-square test for testing the association between the

Workers’ Participation and the Grievance Mechanism shows that the two

dimensions are positively associated with (χ2=40.794, p<0.01).

16. The results of chi-square test for testing the association between the

Communication Process and the Welfare Measures shows that the two

dimensions are positively associated with (χ2=55.152, p<0.01).

17. The results of chi-square test for testing the association between the

Communication Process and the Trade Union Relations shows that the two

dimensions are positively associated with (χ2=43.962, p<0.01).

18. The results of chi-square test for testing the association between the

Communication Process and the Grievance Mechanism shows that the two

dimensions are positively associated with (χ2=33.610, p<0.01).

19. The results of chi-square test for testing the association between the

Welfare Measures and the Trade Union Relations shows that the two

dimensions are positively associated with (χ2=42.817, p<0.01).

212
20. The results of chi-square test for testing the association between the

Welfare Measures and the Grievance Mechanism shows that the two

dimensions are positively associated with (χ2=11.562, p<0.01).

21. The results of chi-square test for testing the association between the Trade

Union Relations and the Grievance Mechanism shows that the two

dimensions are positively associated with (χ2=13.057, p<0.01).

22. The Friedman test shows a significant difference between mean ranks

towards opinion on Workers’ Participation. Based on mean rank present

Improvement in the morale of employees (4.97) is most important factor in

Workers’ Participation.

23. The Friedman test shows a significant difference between mean ranks

towards opinion on Communication Process. Based on mean rank present

Accurate and Timely Information (7.56) is most important factor in

Communication Process.

24. The Friedman test shows a significant difference between mean ranks

towards opinion on Welfare Measures. Based on mean rank present

Availability of First Aid Box (11.29) is most important factor in Welfare

Measures.

25. The Friedman test shows a significant difference between mean ranks

towards opinion on Trade Union Relations. Based on mean rank present

Job Security by being a member (4.35) and Sharing of Negotiations with

the Management (4.35) are the most important factors in Trade Union

Relations.

213
26. The Friedman test shows a significant difference between mean ranks

towards opinion on Grievance Mechanism. Based on mean rank present

System of Recording the process (10.86) is most important factor in

Grievance Mechanism.

27. The result of the correlation analysis among the various dimensions of

Industrial Relations found that there is a significant and positive

relationship between:

Workers’ Participation and Communication (r = 0.167)

Workers’ Participation and Welfare Measures (r = 0.341)
Workers’ Participation and Trade Union Relations (r = 0.328)
Workers’ Participation and Grievance Mechanism (r = 0.363)
Communication and Welfare Measures (r = 0.365)
Communication and Trade Union Relations (r = 0.268)
Communication and Grievance Mechanism (r = 0.490)
Welfare Measures and Trade Union Relations (r = 0.426)
Welfare Measures and Grievance Mechanism (r = 0.486)
Trade Union Relations and Grievance Mechanism (r = 0.536)

28. The regression results on demographic factors and Trade Union Relations

showed that the independent variables are Sex, Age group, Marital status,

Place, Educational Qualification, Designation, Experience and Monthly

income were positively significant to Trade Union Relations. An

examination of the t-values for the nine characteristics indicated that the

most important factor in Trade Union Relations is “Designation” followed

by “Marital status”. The organization should exert more attempt and

develop its relations with the Unions having these two characteristics.

214
7.4 SUGGESTIONS

1. Sugar industry is a labour intensive undertaking and it needs more

employees for the whole year. The management should take necessary steps

to acknowledge the worth of employees in order to retain the productive

employees.

2. The employees have been enjoying the customary benefits such as leave

facilities, leave travel allowances, housing facilities and uniforms. These

facilities should be continued. Any reduction in the name of economic

measures will demoralize the employees.

3. Working conditions refer to mental, physical and social well-being of the

workers in the industry. Improvement in productivity lies in better working

conditions, reduced absenteeism, minimized industrial unrest and improved

employee morale. Therefore, it is suggested that the company should ensure

total occupational safety and health administration.

4. Constant attention to the factors such as good working condition, plant

maintenance, work and quality control is essential. This must be meticulously

planned, organized and executed in every private sector sugar mills at various

levels and experience.

5. An integrated approach to manpower planning, education and training at all

levels viz., management, supervisory and employees will be necessary for

ensuring good industrial relations. Employees at all levels should be consulted

215
before major decisions have been taken. This will also promote harmonious

industrial relations.

6. There is no suitable mechanism for joint consultation on issues relating to

employee welfare. This makes the organizational climate poor. Therefore

steps should be taken to create some participative machinery such as works

committee and joint management council at all levels to promote workers

involvement in major decision making process.

7. Commitment and support of top management to workers participation in

management of functioning by providing time, space and adequate budget for

such participative program and extending appropriate recognition and positive

reinforcement can be established.

8. Promotional and publicity campaigns highlighting the achievement of

workers participation in management success should be spread throughout

the organization.

9. Special attention and personnel care shall be provided to solve the

grievance among employees.

10. Grievance redressal cell is an important place to solve the employees

problem promptly. The promotion of industrial peace is a key factor and

achievement or industrial harmony will depend upon its capacity to prevent

disputes to eliminate legitimate grievances. In turn, it will improve the

employees’ morale.

216
11. The supervisors should listen to complaints on their own merits. The

genuine complaints must be redressed quickly and completely. Mutual

consultation among the aggrieved parties among the employees will quicken

the redressel process.

12. Though industrial relations and human resource management practices

are found to be good, the importance of trade union is not much satisfactory.

Therefore, it is suggested that the right kind of trade union movement, pave

the way for sound and democratic functioning of trade unions and build an

atmosphere of mutual trust between employer and the trade unions.

13. For improving holistic human potential of the employees, organization

should setup health development cells. Health centres should be well

established imparting yoga, meditation and other allied programs like

nutritious working lunch at concessional rate and recreational facilities for

relaxation. Health is essentially an important component for greater

productivity. The higher the standard of health, the higher will be the

contribution for promotion of enterprise, growth and development of the

private sector sugar mills at Tamilnadu.

14. Various designated employees are satisfied with the statutory welfare

measures, still some of the non-statutory welfare measures like better

community hall, cooperative stores for their children and recreation facilities

can be improved.

15. The supervisors play a major role in building relationship between

management and employees, because, they are the immediate channel of

217
communication between both of them. Hence, smooth relationship should

exist between supervisors and employees.

16. Healthy feedback should be collected periodically from all the categories

of employees and managerial staff.

17. Mistakes on the part of the employees can be indicated personally without

hurting the mental stability of the workers.

18. Communication channels inside and outside should be simplified and

strengthened to buildup inter personal relationship between management and

labour.

218
7. 5 SCOPE FOR THE FURTHER RESEARCH

1. The study has focused on a public sector sugar mills alone. Further study

can be concentrated on cooperative and public sector sugar mills.

2. This study has given importance to the impact of only five dimensions of

Industrial Relations. Forth coming researches may include more dimensions.

3. The outcome of the study is specific because the researcher has used only

one industry, in the further research other industries in Tamilnadu can be

concentrated.

4. Even in each dimension, the factors for studying are limited. The future

studies may look for other factors and enhance the research.

219
7.6 CONCLUSION

Sugar mills play an important role in the economic development of

India. They also bring about radical social changes and influence on the lives

of the rural population. The public sector sugar mills have contributed to the

employment for the rural population directly and indirectly. In spite of their

valuable contribution, the mills have their own drawbacks. Perambalur Sugar

Mills Ltd is functioning at a poor level. There is reduction in the production as

well as number of workers. Hence it is suggested by the researcher that

Effective operation should be planned. As in any public sector organization,

the red tape makes the payment for the Farmers for their cane very late.

Proper relationship with them can be maintained only by paying properly. The

mill should strengthen the functioning of the personnel department under a

dedicated manager. The personnel manager should have a comprehensive

view of the whole situation prevailing in the sample units, such as monetary

benefits which include, wages, allowances, social security benefits, and non-

monetary benefits like better working conditions, workers participation in

management, grievance handling, trade union functions and statutory welfare

measures. The employees have been partially satisfied with the above said

labour welfare measures, still improvement has to be done in all the aspects

of labour welfare measures based on the current trends.

Apart from statutory measures, the personnel manager has to

address the non-statutory measures like cooperative society, community hall,

220
thrift and credit society, school facility for their children, recreation facility,

library, etc., in order to improve the morale of its employees. If the personnel

department fails to satisfy the various statutory and non-statutory welfare

measures, then it might lead to frustration among the working class and

culminate in industrial conflicts in various forms. It will lead to poor industrial

relations in the industry.

Poor industrial relations are harmful to all. It will reduce productivity

of labour, quantity and quality of work, labour turnover and absenteeism and

cost also rises. All theses will results in frustration and demoralization among

employees and management. The outcome of industrial conflict, not only

affect the employees and management involved, it also have an impact on the

entire industry, economy and society as well. In order to defeat the industrial

turmoil, the aforesaid recommendations are to be implemented in the industry

for retaining smooth industrial relations, which is of absolute importance to

social and economic development of India.

221
 APPENDIX I

INTERVIEW SCHEDULE

Impact of Labour Welfare Measures on Industrial Relations – With Reference to

Private Sector Sugar Mills, in Tamilnadu

Sir/madam,

This research work aims to examine the effectiveness of policies and

practices of Personnel Department and also to identify the Industrial Relations in
Private Sugar Mills in Tamilnadu.

Your frank response to the questions is solicited. The information gathered

using this questionnaire will be kept confidential and used for research purpose only.

Dr. R. Mathivanan A. Xavier Amaladoss

Guide Researcher
I. DEMOGRAPHIC PROFILE

1. Sex : Male Female

2. Age :………..years

3. Marital Status : Married Unmarried

4. Place of birth : Rural Urban

5 Designation : Unskilled Skilled

Supervisor Middle Manager

Top level Manager

6. Education Professional: Graduate

HSC/ PUC Matric/SSLC

7. Service Details : Experience in this concern ………years

Total experience ……. Years

8. Monthly Income (years) : <5 5 – 10 > 10

:
II WORKERS PARTICIPATION MANAGEMENT
Please indicate the extent to which you agree or disagree with the following
statement related to workers participation opportunity given in your
organization
SA – Strongly Agree, A – Agree, N – Neutral, DA – Disagree,
SDA – Strongly Disagree
S. No. Statements SA A N DA SDA
Employee participation improves the morale of
1
the employee which leads to better relations
Employee participation enhances the sense of
2 give and take which contributes to better
relations
Employee participation is the window for
employees to present their problems in right
3
perspective to management for redressal and
that paves way for better relations
Employee participation ensures protection of
4 the legitimate interest of subordinates thereby
leading to better relations
Employee participation promotes the mutual
negotiation and resolution of conflicts between
5
management and employees, thus ensuring
peaceful industrial relations
Employee participation in management makes
6 the managers feel threatened as their
subordinates are equal with them
Employee participation foster organizational
image by making the employee and the
7
management come closer, stay closer and act
together
Employee participation is a recognition of
8 employee capability to share management
responsibility
Employee participation enhance employee
9
commitment to the organization
III COMMUNICATION PROCESS

Please indicate the extent to which you agree or disagree with the following
statements related to relationship between you and your supervisor

SA – Strongly Agree, A – Agree, N – Neutral, DA – Disagree,

SDA – Strongly Disagree
S.
Statements SA A N DA SDA
No.
1. Daily information from Supervisors is useful
2. Your ideas are passed to the top
3. Feel comfortable with supervisors
4. Information is given to all
5. Top-down communication is good
6. Information are accurate & timely
7. Communication increases relationship
IV WELFARE MEASURES

Please indicate the extent to which you satisfied or dissatisfied with statutory
welfare measures provided in your organization

HS – Highly Satisfied, S – Satisfied, N – Neutral, DS – Dissatisfied,

HSD – Highly Dissatisfied
S.
Facilities HS S N DS HDS
No.
1 I am satisfied with canteen facility
2 I am satisfied with drinking water
3 I am satisfied with lunch room and rest room
4 I am satisfied with recreational facilities
5 I am satisfied with library
I am satisfied with wash basin, toilets and
6
urinals
I am satisfied with supply of shoes and
7
uniform
8 I am satisfied with sitting facilities
9 I am satisfied with gloves and eye
10 I am satisfied with cycle sheds
I am satisfied with masks, hard protective hats
11
and glasses
12 I am satisfied with first aid box
13 I am satisfied with fire fighting equipments
14 I am satisfied with ambulance facility
15 I am satisfied with transport facility
16 I am satisfied with spittoons
17 I am satisfied with housing facility
V TRADE UNION Relations

Please indicate the extent to which you agree or disagree with the following
statements related to the role of trade union in your organization

SA – Strongly Agree, A – Agree, N – Neutral, DA – Disagree,

SDA – Strongly Disagree
S. Statements SA A N DA SDA
No.
I am proud that, I am a member of the trade
1
union
2 I am agree with the functioning of our union
3 I think that unions are politically motivated
Union fights for providing better labour welfare
4
amenities
5 All union joint together for legitimate demands
6 Unions try to promote peace in the organization

7 My views are given importance by labour leaders

8 Union membership is a vital factor for job security

9 I will approve all the policies of the trade union

My union leaders consult with me before taking
10
important decisions

My union leaders provide all the information

11
relating to the negotiations with the management

My union leader conveys our grievances to the

12
management regularly
Union maintains cordial relationship with the
13
management
14 Healthy union activities are always encouraged
EMPLOYEE GRIEVANCE HANDLING

Please indicate the extent to which you agree or disagree with the following
statement related to grievance handling procedure in your organization

SA – Strongly Agree, A – Agree, N – Neutral, DA – Disagree,

SDA – Strongly Disagree
S. No. Statements SA A N DA SDA

1 Orientation on Grievance mechanism is given

during induction

2 Regular monthly meetings are conducted to

settle down the grievances
3 Workers’ feedback is accepted
4 Confidentiality is maintained
5 Suggestion box is located
6 Whistle blowers are protected
7 Workers are educated of the process
8 The system of recording is good
 APPENDIX II

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