Industrial Relations & Labor Laws (EDL 309) -Semester III

Industrial Relations & Labor Laws (EDL 309) -Semester III

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Module I : Industrial Relations

Case study

A union or a similar collective group of employees is usually seen by its members as a way for employees to negotiate and communicate with their employers or management on a more level playing field than if each employee were to approach management individually. In line with this goal, the term “collective bargaining” refers to the actual process in which workers gather, and together bargain or make a deal with management on the key terms and conditions of employment.

Collective bargaining generally is aimed at making a deal or bargain with management that addresses a wide range of concerns in a particular workplace. This type of deal is a labor contract and is often referred to as a “collective bargaining agreement” or CBA.

Examples of some of the many topics covered in CBAs between management and employees include employee wages, hours, benefits, time off, raises, promotions, and disciplinary issues. However, CBAs also cover a number of additional topics ranging from worker safety to insurance, and can vary depending on the industry or workplace.

CBAs and the Law

Many of the legal issues involving unions are covered by the federal law known as the National Labor Relations Act (NLRA). The National Labor Relations Board (NLRB) is the federal agency charged with dealing with labor disputes when they become legal battles, and is also charged with taking enforcement action when violations occur.

In general, under the NLRA, employees have the right to join unions and collectively bargain. Notably, however, there are some types of employers and industries that are not covered by the Act. Some examples of these excluded industries include government workers, agricultural laborers, and independent contractors. For those employers and industries to which it applies, however, the NLRA prohibits employers from interfering with or preventing employees from organizing or engaging in activities that relate to organizing or forming a union.

In reality, the language of the law protects a wide range of employee activities and efforts to get together to improve their working conditions or their terms of employment. In other words, the protections afforded by the law are not limited to situations involving unions or face-to-face bargaining.

The “Good Faith” Collective Bargaining Requirement

Both sides of the employment relationship are required to undertake what is known as “good faith” bargaining. This term by its nature is pretty unclear, as evidenced by the large number of cases and disputes that end up with the NLRB involving whether one side or the other bargained in good faith. However, some common threads and generalities can be made about what are definitely not examples of good faith bargaining:

• Refusing to meet and bargain with the other party;

• Changing the terms of a bargain (or existing working conditions) unilaterally;

• Engaging in “sham” negotiations with the other side.

These are just some examples of conduct that would indicate a lack of good faith by one of the parties.

Unions’ Duty of Fair Representation

Employees should also be aware that their union has the responsibility to represent its members in a fair and equal manner. This doesn’t mean that the union has to do everything that individual members desire, nor act on their every wish. What it does mean, however, is that each member must be treated equally and in a fair manner.

If you feel your rights as a member have not been upheld equally or fairly by the union, there are typically grievance procedures that should be the first avenue to seek relief. If those procedures do not exist or have been exhausted, it may be time to consult with a local attorney specializing in employment law who will be able to advise on the matter, and if necessary, assist with bringing an action with the NLRB or the appropriate court.

No Deal! When Collective Bargaining Falls Short

As noted above, it is not uncommon for disputes to arise before, during, and after the negotiation process. When this occurs the dispute typically ends up in the hands of the NLRB which handles many labors disputes each year. The NLRB investigates claims and makes a determination as to whether further proceedings are warranted.

Need Legal Help with a Labor Issue? Find an Attorney Near You

Labor relations are complicated and there are often disputes between employers and their workers that require legal action. Unions typically offer legal representation to their members, but there may be instances where you’ll need to go it alone. Check out FindLaw’s directory of labor law attorneys to find one near you.

Article 43A of the Constitution of India deals with ‘Participation of workers in management of industries’ and falls under Part IV – Directive Principles of State Policy.

The State shall take steps, by suitable legislation or in any other way, to secure the participation of workers in the management of undertakings, establishments or other organisations engaged in any industry.

This article was inserted by the Constitution (Forty-second Amendment) Act, 1976, s. 9 (w.e.f. 3-1-1977).

The High-powered Expert Committee on Companies and MRTP Acts headed by Justice Rajinder Sachar of the Delhi High Court has also made certain recommendations about provisions to be made for workers’ participation in management of companies. (Vide paragraphs 18.127 to 18.143 of the Report). Parliament may take early steps to implement some of the recommendations made by the said Committee. It is significant that there is no recommendation made even in this Report about the right of trade unions to contest winding-up petitions. If the workers are issued shares then they would no doubt be entitled to participate in the winding-up proceedings as contributories. This may be one way of solving the problem by legislative means.

A process by which subordinate employees, either individually or collectively, become involved in one or more aspects of organizational decision making within the enterprises in which they work.

Workers’ participation in management is an essential ingredient of Industrial democracy. The concept of workers’ participation in management is based on Human Relations approach to Management which brought about a new set of values to labour and management. Traditionally the concept of Workers’ Participation in Management (WPM) refers to participation of non-managerial employees in the decision-making process of the organization. Workers’ participation is also known as ‘labour participation’ or ‘employee participation’ in management. In Germany it is known as co-determination while in Yugoslavia it is known as self-management. The International Labour Organization has been encouraging member nations to promote the scheme of Workers’ Participation in Management.

Workers’ participation in management implies mental and emotional involvement of workers in the management of Enterprise. It is considered as a mechanism where workers have a say in the decision-

The philosophy underlying workers’ participation stresses:

1. democratic participation in decision-making;

2. maximum employer-employee collaboration;

3. minimum state intervention;

4. realisation of a greater measure of social justice;

5. greater industrial efficiency; and

6. higher level of organisational health and effectiveness.

It has been varyingly understood and practised as a system of joint consultation in industry; as a form of labour management cooperation; as a recognition of the principle of co-partnership, and as an instrument of industrial democracy. Consequently, participation has assumed different forms, varying from mere voluntary sharing of information by management with the workers to formal participation by the latter in actual decision-making process of management.

The concept of WPM is a broad and complex one. Depending on the socio-political environment and cultural conditions, the scope and contents of participation change.

International Institute of Labour Studies:

WPM is the participation resulting from the practices which increase the scope for employees’ share of influence in decision-making at different tiers of organizational hierarchy with concomitant (related) assumption of responsibility.

ILO:

Workers’ participation, may broadly be taken to cover all terms of association of workers and their representatives with the decision-making process, ranging from exchange of information, consultations, decisions and negotiations, to more institutionalized forms such as the presence of workers’ member on management or supervisory boards or even management by workers themselves (as practiced in Yugoslavia).

The main implications of workers’ participation in management as summarized by ILO:

• Workers have ideas which can be useful;

• Workers may work more intelligently if they are informed about the reasons for and then intention of decisions that are taken in a participative atmosphere

• According to Keith Davis, Participation refers to the mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share the responsibility of achievement.

• According to Walpole, Participation in Management gives the worker a sense of importance, pride and accomplishment; it gives him the freedom of opportunity for self-expression; a feeling of belongingness with the place of work and a sense of workmanship and creativity.

• Clegg says, “It implies a situation where workers representatives are, to some extent, involved in the process of management decision making, but where the ultimate power is in the hands of the management”.

• According to Dr. Davis, “it is a mental and emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities in them”.

Objectives of Workers Participation in Management

The objectives of workers’ participation in management are as follows:

• To raise level of motivation of workers by closer involvement.

• To provide opportunity for expression and to provide a sense of importance to workers.

• To develop ties of understanding leading to better effort and harmony.

• To act on a device to counter-balance powers of managers.

• To act on a panacea for solving industrial relation problems.

Gujarat High Court

Gujarat Kamdar Sahakari Mandal … vs Ramkrishna Mills Ltd. on 7 April, 1994

The provisions of article 43A intended to herald industrial democracy and in the words of Krishna Iyer J., it marks the “end of industrial bonded labour”. The Constitutional mandate is, therefore, clear that, the management of the enterprises should not be left entirely in the hands of suppliers of capital, but the workers should also be entitled to participate in it because in a socialist pattern of society the enterprise, which is the centre of economic area, should be controlled not only by suppliers of capital but also by labour, The workers, therefore, have a special place in a socialist pattern of society. They are not mere vendors of toil. They are not a marketable commodity to be purchased by the owners of capital. They are producers of wealth as much as capital. They supply labour without which the capital would be impeded and they are at the least equal partners with capital in the enterprise. It is in the light of the aforesaid Constitutional philosophy, that the scheme which is put forward by the society of workers is required to be approached.

Specific of Purpose of Workers’ Participation

1. It helps in managing resistance to change which is inevitable. For the growth and development of industry, changes have to be welcomed, otherwise the organization will stagnate and be left behind. If the need for change is jointly felt by all partners of production its acceptance can be high. Workers’ participation in change strategy can facilitate acceptable solutions with a view to secure effective and smooth implementations of decisions.

2. Workers’ participation can encourage communication at all levels. Since both partners of production are involved in the decision-making there will be fewer changes of distortion and/ or failure in communicating the decision.

3. Joint decision- making ensures the there will be minimum industrial conflict an economic growth can be free form distracting strife.

4. Workers’ participation at the plant level can be seen as the first step to establishing democratic values in society at large.

Elements of Participation

The term “participation” has different meanings for different purposes in different situations. McGregor is of the view that participation is one of the most misunderstood idea that has emerged from the field of human relations. Keith Davis has defined the term “participation” as the mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share responsibilities in them. This definition envisages three important elements in participation. Firstly, it means mental and emotional involvement rather than mere physical activity; secondly, participation must motivate a person to contribute to a specific situation to invest his own resources, such as initiative, knowledge, creativity and ingenuity in the objectives of the organisation; and thirdly, it encourages people to share responsibility for a decision or activity. Sharing of responsibility commits people to ensure the success of the decision or activity.

Forms of Participation

Different forms of participation are discussed below:

Collective Bargaining: Collective bargaining results in collective agreements which lay down certain rules and conditions of service in an establishment. Such agreements are normally binding on the parties. Theoretically, collective bargaining is based on the principle of balance of power, but, in actual practice, each party tries to outbid the other and get maximum advantage by using, if necessary, threats and counterthreats like; strikes, lockouts and other direct actions. Joint consultation, on the other hand, is a particular technique which is intended to achieve a greater degree of harmony and cooperation by emphasising matters of common interest. Workers prefer to use the instrument of collective bargaining rather than ask for a share in management. Workers’ participation in the U.S.A has been ensured almost exclusively by means of collective agreements and their application and interpretation rather than by way of labour representation in management.

Works Councils: These are exclusive bodies of employees, assigned with different functions in the management of an enterprise. In West Germany, the works councils have various decision-making functions. In some countries, their role is limited only to receiving information about the enterprise. In Yugoslavia, these councils have wider decision-making powers in an enterprise like; appointment, promotion, salary fixation and also major investment decisions.

Joint Management Councils and Committees: Mainly these bodies are consultative and advisory, with decision-making being left to the top management. This system of participation is prevalent in many countries, including Britain and India. As they are consultative and advisory, neither the managements nor the workers take them seriously.

Board Representation: The role of a worker representative in the board of directors is essentially one of negotiating the worker’s interest with the other members of the board. At times, this may result in tension and friction inside the board room. The effectiveness of workers’ representative at the board depend upon his ability to participate in decision-making, his knowledge of the company affairs, his educational background, his level of understanding and also on the number of worker representatives in the Board.

Workers Ownership of Enterprise: Social self-management in Yugoslavia is an example of complete control of management by workers through an elected board and workers council. Even in such a system, there exist two distinct managerial and operative functions with different sets of persons to perform them. Though workers have the option to influence all the decisions taken at the top level, in actual practice, the board and the top management team assume a fairly independent role in taking major policy decisions for the enterprises, especially in economic matters.

Levels of Participation

Workers’ participation is possible at all levels of management; the only difference is that of degree and nature of application. For instance, it may be vigorous at lower level and faint at top level. Broadly speaking there is following five levels of participation:

1. Information participation: It ensures that employees are able to receive information and express their views pertaining to the matters of general economic importance.

2. Consultative participation: Here works are consulted on the matters of employee welfare such as work, safety and health. However, final decision always rests at the option of management and employees’ views are only of advisory nature.

3. Associative participation: It is extension of consultative participation as management here is under moral obligation to accept and implement the unanimous decisions of employees.

4. Administrative participation: It ensure greater share of works in discharge of managerial functions. Here, decision already taken by the management come to employees, preferably with alternatives for administration and employees have to select the best from those for implementation.

5. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relation to production, welfare etc. is called decisive participation.

Pre-requisites for Effetive Participation

The pre-requisites for the success of any scheme of participative management are the following:

1. Firstly, there should be a strong, democratic and representative unionism for the success of participative management.

2. Secondly, there should be mutually-agreed and clearly-formulated objectives for participation to succeed.

3. Thirdly, there should be a feeling of participation at all levels.

4. Fourthly, there should be effective consultation of the workers by the management.

5. Fifthly, both the management and the workers must have full faith in the soundness of the philosophy underlying the concept of labour participation.

6. Sixthly, till the participative structure is fully accepted by the parties, legislative support is necessary to ensure that rights of each other are recognised and protected.

7. Seventhly, education and training make a significant contribution to the purposeful working of participative management.

8. Lastly, forums of participation, areas of participation and guidelines for implementation of decisions should be specific and there should be prompt follow-up action and feedback.

Question 1

“collective bargaining” refers to the actual process in which workers gather, and together bargain or make a deal with management on the key terms and conditions of employment.This statement is ___?

Select one:

a. True

b. Partially True

c. Wrong

d. Partially Wrong

Question 2

According to this case study , If you feel your rights as a member have not been upheld equally or fairly by the union, there are _____  that should be the first avenue to seek relief.

Select one:

a. Complaint Boxes

b. grievance procedures

c. Counsellers

d. None of the options

Question 3

As per this case study , Collective Bargaining Agreement (CBA) between management and employees include__?

Select one:

a. employee wages, hours

b. benefits, time off, raises

c. promotions, and disciplinary issues

d. All of the options

Question 4

as per this case study , the correct form of NLRB is ?

Select one:

a. National Labor Regulations Board

b. Nationalised Labor Relations Board

c. National Labor Relations Board

d. National Legal Relations Board

Question 5

As per this Case Study , which of the following can be examples of conduct that would indicate a lack of good faith by one of the parties.

Select one:

a. Refusing to meet and bargain with the other party

b. Changing the terms of a bargain (or existing working conditions) unilaterally

c. Engaging in “sham” negotiations with the other side

d. All of the options

Question 6

A union of employees is usually seen by its members as a way for employees to_____  on a more level playing field than if each employee were to approach management individually.

Select one:

a. negotiate with employers

b. communicate with their employers or management

c. Both A & B

d. None of these

Question 7

Collective bargaining is aimed at making a deal or bargain with management that addresses a wide range of concerns in a particular workplace. This type of deal is a labor contract and is often referred to as ____?

Select one:

a. “Cooperative bargaining agreement” or CBA.

b. “collective bargaining agreement” or CBA.

c. “Cumulative bargaining agreement” or CBA.

d. None of these options

Question 8

Objectives of Workers Participation in Management is/are?

Select one:

a. To provide opportunity for expression and to provide a sense of importance to workers

b. To develop ties of understanding leading to better effort and harmony.

c. To raise level of motivation of workers by closer involvement

d. All of the options

Question 9

The philosophy underlying workers’ participation stresses on which of the following ?

Select one:

a. higher level of organisational health and effectiveness

b. democratic participation in decision-making

c. maximum employer-employee collaboration

d. ALL of the options

Question 10

_________of the Constitution of India deals with ‘Participation of workers in management of industries’

Select one:

a. Article 43A

b. Article 44

c. Article 20

d. Article 26

10 on 10

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MODULE II : TRADE UNION MOVEMENT IN INDIA

Case study

The Directive Principles of State Policy contained in Part IV, Articles 36-51 of the Indian constitution constitute the most interesting and enchanting part of the constitution.

The Directive Principles may be said to contain the philosophy of the constitution. The idea of directives being included in the constitution was borrowed from the constitution of Ireland. As the very term “Directives” indicate, the Directive principles are broad directives given to the state in accordance with which the legislative and executive powers of the state are to be exercised.

As Nehru observed, the governments will ignore the directives “Only at their own peril.” As India seeks to secure an egalitarian society, the founding fathers were not satisfied with only political justice. They sought to combine political justice with economic and social justice.

The Directive Principles may be classified into 3 broad categories—

1. Socialistic

2. Gandhian and

3. Liberal-intellectual.

(1) Socialistic Directives

Principal among this category of directives are (a) securing welfare of the people (Art. 38) (b) securing proper distribution of material resources of the community as to best sub serve the common-good, equal pay for equal work, protection of childhood and youth against exploitation. etc. (Art.39), (c) curing right to work, education etc. Art. (41), (d) securing just and humane conditions of work and maternity relief (Art. 42) etc.

(2) Gandhian Directives

Such directives are spread over several Arts. Principal among such directives are (a) to organize village panchayats (Art. 40), (b) to secure living wage, decent standard of life, and to promote cottage industries (Art.43), (c) to provide free and compulsory education to all children up to 14 years of age (Art. 45), (d) to promote economic and educational interests of the weaker sections of the people, particularly, the scheduled castes and scheduled tribes, (e) to enforce prohibition of intoxicating drinks and cow-slaughter and to organize agriculture and animal husbandry on scientific lines (Arts. 46-48).

(3) Liberal intellectual directives

Principal among such directives are (a) to secure uniform civil code throughout the country (Art.44), (b) to separate the judiciary from the executive (Art.50), (c) to protect monuments of historic and national importance and (d) to promote international peace and security.

On the whole, Part IV contains a formidable list of directives given to the executive and the legislatures to follow in issuing orders or making laws. These directives make India a “plastic state.” The directives may be used by any party with any ideology. In fact, the Directive Principles are codified versions of democratic socialist order as conceived by Nehru with an admixture of Gandhian thought.

Part IV of the constitution does not form an operative part of the constitution. The directives are non-justiciable in character. The courts cannot compel the governments to enforce the directives.

But if there is no judicial sanction behind the directives, there are certainly political sanctions. Art. 37 make the directives, “fundamental in the governance of the country and in… making laws.” Hence the government cannot totally ignore them, for fear of adverse popular reaction. The opposition inevitably takes the government to task whenever the directives are blatantly ignored, thus scoring a political point.

The non-justiciability of part IV has exposed the directives to trenchant criticism. Jennings calls them “pious aspirations,” and “Fabian socialism without socialism.” Where characterizes them as “paragraphs of generalities.”

Yet many scholars appreciate the value of the directives. Sir B. N. Rau regards them as “moral precepts” with an educative value. Ambedkar considered them as powerful instruments for the transformation of India from a political democracy into an economic democracy. The directive principles according to Granville Austin, are “positive obligations”… to find a piddle way between individual liberty and Public good. “The directives constitute a sort of “instrument of instruction” to all governments in the great task of transforming a laissez-fire society into a welfare state, a socialistic pattern of society and eventually into a socialist society.

Parts III and IV, that is, chapters on Fundamental Rights and Directive Principles, together constitute the “conscience” of the Indian constitution. But, the differences between Fundamental Rights and Directive Principles of State policy are significant. The differences are discussed below :

• Firstly, the fundamental rights constitute a set of negative injunctions. The state is restrained from doing something’s. The directives on the other hand are a set of positive directions. The state is urged to do something to transform India into a social and economic democracy. As Gladhill observes, Fundamental Rights are injunctions to prohibit the government from doing certain things, the Directive principles are affirmative instructions to the government to do certain things.

• Secondly, the Directives are non-justiciable. Courts do not enforce them. A directive may be made enforceable by the courts only when there is a lam on it. Fundamental rights, on the other hand are justiciable. They impose legal obligations on the state as well as on individuals. Courts enforce them. If a law violates a fundamental right, the law in question will be declared void. But no law will be declared unconstitutional on the ground that it violates a directive principle against violation of a fundamental right, constitutional remedy under Art. 32 are available which not the case is when a directive is violated either by the state or, by individual. For this reason Prof K. T. Shah deprecates the Directive Principles as “Pious wishes” or a mere window dressing for the social revolution of the country.

Whenever conflicts arise between fundamental rights and directive principles, fundamental rights prevail over the directive principles because, in terms of Arts. 32 and 226, fundamental rights are enforceable by the courts. If a law is in conflict with a fundamental right, it is declared void by the Supreme Court. But no law can be declared void on the ground that it is violative of a directive principle. In 1951, in Champakam Dorairajan vs. the state of Madras, the Supreme Court held “The chapter on Fundamental Rights is sacrosanct and not liable to be abridged by any legislative or executive act. The Directive Principles of State Policy have to conform and are subsidiary to the chapter on Fundamental Rights.”

25th constitution amendment Act in 1971 by Article 31(c) provided that laws enacted to implement directives in Article 39 (b) and (c) shall not be declared void on ground of contravention of fundamental rights guaranteed by Articles 14 and 19. In 1976, during emergency, the 42nd amendment, sought to widen the scope of Article 31 (c), to place all laws passed for the implementation of any or all directive principles beyond judicial review. But the Supreme Court struck down this attempt at total exclusion of all laws to implement directives from judicial review on the ground that this will offend the ‘basic structure’ of the constitution. Thus Article, 31(c) is restored to pre-1976 position. The position today is that, in general, the fundamental rights enjoy priority over the directives. But the laws passed to implement Article 39 (b) and (c) cannot be declared void on ground of violation of fundamental rights guaranteed by Articles 14 and 19.

Importance of Constitutional Remedies

Mere codification of fundamental rights in the constitution is not enough unless remedies for the enforcement of those rights conferred by the constitution are also guaranteed by the constitution itself. In other words, rights to constitutional remedies are also important.

Article 32: This article provides for important remedies for enforcement of fundamental rights. This article confers the right to move either to the Supreme Court or under Article 226 to the High Court for any infringement of any of the fundamental rights.

As remedial measure the Supreme Court shall have the power under Article 32 to issue directions or Writs in the nature of Habeas Corpus, Mandamas, Prohibition, Quo-warranto and Certiorari, whichever may be appropriate, for the enforcement of any of the rights stipulated in the chapter on fundamental rights.

Supreme Court has been empowered to issue the Writ known as Habeas Corpus, demanding the presence of the imprisoned person before the court to obtain knowledge of the reason why he has been imprisoned and to set him free if there is no lawful justification for his imprisonment.

This Supreme Court and the High courts can also issue the Writ of Mandamas, giving directives to an individual, or an institution, or a subordinate court or the government requiring fulfillment of its responsibilities.

The Writ of Prohibition is issued by the Supreme Court or High Court to a subordinate court forbidding to continue proceedings in excess of its jurisdiction or to usurp a jurisdiction with which it is not legally vested with.

The object of the writ of Certiorari is also to secure that the jurisdiction of subordinate court is exercised properly and it does not usurp its jurisdiction. While Prohibition is available at an earlier stage, Certiorari is available on similar grounds at a later stage.

By the Writ of Quo-warranto the Court enquires into the legality of the claim asserted to a public office and to take action if the claim is not found justified.

Varieties of rights come up for enforcement by the issue of Writs under Article 32:

1. Fundamental rights guaranteed by the constitution;

2. Constitutional rights not having the status of fundamental rights;

3. Statutory rights;

4. Rights which flow from subordinate legislations;

5. Rights based on case law;

6. Customary rights;

7. Contractual rights.

It may be pointed out here that no redress in possible for the violation of social and economic rights contained in the directive Principles, for, those rights are non-justiciable.

Question 1 : As remedial measure the Supreme Court shall have the power under Article 32 to issue which of the following directions or Writs ?

Select one:

a. Habeas Corpus

b. Mandamas

c. Quo-warranto and Certiorari

d. All of the options

Question 2

Directive Principles of state Policy are contained in ——?

Select one:

a. Part IV, Articles 36-51 of the Indian constitution

b. Part II, Articles 6-15 of the Indian constitution

c. Part III, Articles 36-51 of the Indian constitution

d. Part V, Articles 20-40 of the Indian constitution

Question 3

Fundamental Rights & Directive Principles of State Policy are contained in which of the following Chapters of Indian Constitution?

Select one:

a. III & IV

b. IV & V

c. IV & VIII

d. X & III

Question 4

Fundamental Rights are injunctions to prohibit the government from doing certain things, the Directive principles are affirmative instructions to the government to do certain things.This Statement is ______?

Select one:

a. False

b. True

c. Partially True

d. Partially wrong

Question 5

which of the following are correct in the context of Quo-Warranto?

Select one:

a. The Court enquires into the legality of the claim asserted to a public office and to take action if the claim is not found justified.

b. To secure that the jurisdiction of subordinate court is exercised properly and it does not usurp its jurisdiction.

c. Both A & B

d. None of the options

Question 6

Which of the following are true in the context of The Writ of Prohibition ?

Select one:

a. the Court enquires into the legality of the claim asserted to a public office and to take action if the claim is not found justified.

b. Court demanding the presence of the imprisoned person before the court to obtain knowledge of the reason why he has been imprisoned and to set him free if there is no lawful justification for his imprisonment.

c. issued by the Supreme Court or High Court to a subordinate court forbidding to continue proceedings in excess of its jurisdiction or to usurp a jurisdiction with which it is not legally vested with.

d. Both A & B

Question 7

Which of the following are Varieties of rights come up for enforcement by the issue of Writs under Article 32 ?

Select one:

a. “Rights which flow from subordinate legislations “

b. Rights based on case law

c. Customary rights

d. All of the options

Question 8

Which of the following options CANNOT be categorised as Directive Principles ?

Select one:

a. Socialistic

b. Politicalistic

c. Gandhian

d. Liberal Intellectual

Question 9

Which of the following statements are true in the context of fundamental rights ?

Select one:

a. fundamental rights are Not enforceable by the courts.

b. fundamental rights are Partially enforceable by the courts.

c. fundamental rights are enforceable by the courts.

d. None of the options

Question 10

__________ in 1971 by Article 31(c) provided that laws enacted to implement directives in Article 39 (b) and (c) shall not be declared void on ground of contravention of fundamental rights guaranteed by Articles 14 and 19.

Select one:

a. 25th constitution amendment Act

b. 28th constitution amendment Act

c. 35th constitution amendment Act

d. 75th constitution amendment Act

10 on 10

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MODULE III: LABOUR MANAGEMENT CO-OPERATION

Case Study

Employers can take action, including dismissals, against employees who have been errant or recalcitrant. However, any action taken must follow the proper disciplinary procedure.

Progressive disciplinary action is a process whereby an employer takes disciplinary action against an employee in a progressive manner; that is, going from lesser to heavier intensity action.

A lesser form of disciplinary action may include counselling the employee and issuing warning letters. Heavier intensity action include the issuance of a showcause letter, suspending the employee, conducting domestic inquiry and finally dismissal.

There are various clauses in the Employment Act 1955 that pertains to taking disciplinary action in a progressive manner.

If an employer acts with due care in taking disciplinary action, the courts will not intervene. Following the process step by step will reflect fairness on the part of the employer and can minimise industrial court cases for unlawful dismissal.

From time to time, cases of misconduct and dismissal involving employees may arise, and it is crucial that employers know what steps to take under the regulation to avoid being challenged for wrongful dismissal or dismissal without just cause.

All misconducts and acts of indiscipline must be investigated to identify whether they are minor or major in nature. The handling of misconduct and some of the related clauses is regulated under Section 12, 13, 14 and 15 of the Employment Act 1955 and also in Section 20 of the Industrial Relations Act 1967.

A grievance is basically a complaint. In a workplace a grievance generally occurs as a result of treatment which is perceived to be unfair or harsh at the hands of a work colleague. Typical situations which might result in a grievance include:

• Being passed over for promotion

• Being given unpopular tasks more often than other workers (picked on)

• Sexual harassment

• Favouritism in the sharing of overtime work hours

Employers need to implement measures to allow any such problems to be resolved effectively and fairly. One such measure is to implement ‘grievance procedures’, the purpose of which is to make it easier for employees to come forward if they feel they are a victim of unfair treatment.

If employees have difficulty dealing with significant workplace issues then the likely result is a reduction in workplace morale, increased staff turnover or even the risk of the employee taking legal action.

Grievance procedures will commonly contain:

1 A recommendation that the first action the aggrieved party take is to attempt to resolve the problem by talking directly with the person causing perceived to be perpetrating unfair or harsh treatment.

2 If any such attempt to find a resolution is unsuccessful, the method by which to bring the matter to the attention of appropriate authorities.

3 The amount of time which the complainant has to commence the grievance.

4 The process by which the grievance will be investigated, including the length of time within which matter must be actioned.

5 The confidentiality that must be observed

6 Guidance on mediation strategies

7 The process for appointing persons to arbitrate on the matter

Any act of misconduct can be further defined as below:

Minor misconduct

Minor misconduct can be described as any act of indiscipline or behaviour by an employee that causes minimal harm or damage, and is less detrimental to the reputation of the personnel and assets of the employer.

Some examples of minor misconducts are occasional tardiness, absence without leave, leaving the workplace before time, careless use of company tools and equipment, not storing tools in proper order, not wearing uniform, not using basic safety equipment, using company property for personal purposes and all other similar acts.

All complaints must be put in writing on a formal complaint form provided by a supervisor or the head of department. If the complaint is found not to be an offence after investigations, the supervisor or head of department should respond to the complainant that there is no case of misconduct.

However, if an offence is found, the employee should be counseled immediately and the counseling is to be recorded.

A warning letter should be issued if the same misconduct is repeated. The letter must state the misconduct, and warn that serious disciplinary action can and may be taken against the employee in question if the misconduct is not corrected. Should the employee again commit the same misconduct, a second warning letter should be issued.

It is permissible that the first warning letter be issued by the respective head of department so that the employee is aware that the person he to whom directly reports, such as supervisor or manager, can take disciplinary action against his subordinate.

Regardless, the human resource department should issue the second warning letter and handle any other action if the situation becomes serious and needs further attention, as it would be more familiar in handling the progressive disciplinary processes. If the misconduct persists, it may be considered a major misconduct.

Major misconduct

A major misconduct is any act of indiscipline or behaviour that causes substantial harm or damage, is detrimental to or affects the reputation of the personnel and assets of the employer. Similar to minor misconduct, all major misconduct must be investigated.

Some examples of major misconducts are: insubordination, disobedience, theft, fraud, dishonesty, gambling, assault, violence, abuse, habitual absences, habitual late attendance, bribery, negligence of duties, failure to observe safety rules, chronic inefficiency in performance, drug and alcohol abuse, engaging in private work during working hour, destroying company documents and all other similar act of misconduct.

Depending on the merits of the case, several measures can be taken – including suspension with half-pay and the issuance of a show-cause letter. A final warning letter can and may be issued if the response given by the employee is not acceptable.

If the employee does not satisfy to the conditions set down, the employer may proceed to hold a domestic inquiry and to take a more serious disciplinary action against the accused employee, including dismissal.

Alternatively, depending on the weight of the misconduct, the employer can and may consider not suspending the employee, issuing instead a final warning letter.

If suspension with half-pay is required, the next immediate step is the issuance of a showcause letter. In a typical situation, the employee should be given a reasonable period of time to respond (example, five working days to reply to a showcause letter), but may be extended if the magnitude of the event warrants a longer process, such as if witness accounts need to be compiled.

A final warning letter may be issued if the reply is not acceptable. In situations where said misconduct persists, the employer may proceed with a domestic inquiry.

Domestic inquiry

In a domestic inquiry process, a panel is set up to determine whether the accused is “guilty” or “innocent” of the charge. The panel consists of a chairman and two panel members, and their role is to listen to the proceedings of the domestic inquiry and come to a decision. After that management will make a decision on punishment.

There will be one person from the office that can act as the secretary to prepare a verbatim report (word by word) during the domestic inquiry process, while another person from human resource can be the presenting officer. At this stage, the case against the employee should be supported with proof of evidence, and it should be guided by the principles of natural justice and of good conscience in its deliberations.

If the accused is found guilty, the domestic inquiry panel may recommend the punishment to management.

On the other hand, the employee can and may provide an avenue for an appeal to the management committee to reconsider for other lesser punishment, if any.

If the employee is found not guilty, the domestic inquiry panel will inform the managing director of its decision.

Then, management will inform the accused employee of the decision, which is guided by the domestic inquiry panel, and pay back any amount due to the accused employee during his period of suspension with half-pay.

Question 1: “All complaints must be put in writing on a formal complaint form provided by a supervisor or the head of department. If the complaint is found not to be an offence after investigations, the supervisor or head of department should respond to the complainant that there is no case of misconduct”. This statement is ____?

Select one:

a. True

b. False

c. Partially True

d. Partially false

Question 2

As per this case Study – “A warning letter should be issued if the same misconduct is repeated. The letter must state the misconduct, and warn that serious disciplinary action can and may be taken against the employee in question if the misconduct is not corrected. Should the employee again commit the same misconduct, a second warning letter should be issued”. This Statement is ____?

Select one:

a. False

b. True

c. Partially True

d. Partially Wrong

Question 3

Depending upon the case, which of the disciplinary actions can be taken?

Select one:

a. issuance of a show-cause letter

b. suspension with half-pay

c. Both a & B

d. None of these

Question 4

Example of major misconducts  can be?

Select one:

a. dishonesty, gambling, assault

b. violence, abuse, habitual absences

c. disobedience, theft

d. All of the options

Question 5

Examples of minor misconducts can be?

Select one:

a. absence without leave

b. careless use of company tools

c. not wearing uniform

d. All of the options

Question 6

If employees have difficulty dealing with significant workplace issues then the likely result is ?

Select one:

a. reduction in workplace morale

b. increased staff turnover

c. Risk of the employee taking legal action

d. All of the options

Question 7

Minor misconduct can be described as any act of indiscipline or behaviour by an employee that causes _______to the reputation of the personnel and assets of the employer.

Select one:

a. maximum harm or damage, and is more detrimental

b. minimal harm or damage, and is less detrimental

c. average harm or damage, and is more detrimental

d. None of these

Question 8

Progressive disciplinary action is a process whereby an employer takes disciplinary action against an employee in a progressive manner, that means __?

Select one:

a. Going from lesser to heavier intensity action.

b. Going from heavier to lesser intensity action.

c. Both a & B

d. None of these

Question 9

Situations which might result in a grievance is/are?

Select one:

a. Being passed over for promotion

b. Favouritism in the sharing of overtime work hours

c. Being given unpopular tasks more often than other workers

d. All of the options

Question 10

The handling of misconduct and some of the related clauses is regulated under Section 12, 13, 14 and 15 of ____?

Select one:

a. Factories Act 1948

b. Contract Act 1970

c. the Employment Act 1955

d. Minimum Wages Act

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MODULE IV : MANAGING EMPLOYEE DISCIPLINE

Case Study

In yet another initiative towards improving the ease of doing business in the country, Bandaru Dattatreya-led labour ministry has notified draft rule that would allow principal employer or contractor hiring contract labour to file a unified annual return under the Contract Labour (Regulation & Abolition) Act, 1970.

Under the rules, to be called as the Contract Labour (Regulation & Abolition) Central (Amendment) Rules, 2017, every contractor or principal employer shall upload a unified annual return in the Form XXIV specified in these rules on or before the February 1 following the close of the year to which it relates. The draft rules expires on April 14, 2017 after which the said rules will apply from the date of notification in the absence of any objections raised.

Besides, the employer or the principal contractor qalso have the option of filing the return manually or online. The principal employer or contractor shall also file a Unified Annual Return to the concerned authorities manually. In case, if, an employer maintains registers or records or reports in electronic form, such registers or records or reports shall also be taken into consideration,” the draft notification of the labour ministry said.

Both the government and the corporate sector employ a large number of contract workers. Contract labour accounts for 55% of public sector jobs and 45% of those in the private sector. Only about 300,000 contract labourers out of an estimated 80 million are employed in the organised sector.

The Object of the Contract Labour Regulation and Abolition) Act, 1970 is to prevent exploitation of contract labour and also to introduce better conditions of work. A workman is deemed to be employed as Contract Labour when he is hired in connection with the work of an establishment by or through a Contractor. Contract workmen are indirect employees. Contract Labour differs from Direct Labour in terms of employment relationship with the establishment and method of wage payment. Contract Labour, by and large is not borne on pay roll nor is paid directly. The Contract Workmen are hired, supervised and remunerated by the Contractor, who in turn, is remunerated by the Establishment hiring the services of the Contractor.

Registration And Licensing

The Act applies to the Principal Employer of an Establishment and the Contractor where in 20 or more workmen are employed or were employed even for one day during preceding 12 months as Contract Labour. For the purpose of calculating the number, contract labour employed for different purposes through different contractor has to be taken into consideration. This Act does not apply to the Establishments where work performed is of intermittent or seasonal nature. If a Principal Employer or the Contractor falls within the vicinity of this Act then, such Principal Employer and the Contractor have to apply for Registration of the Establishment and License respectively. The contractor The Act also provides for Temporary Registration in case the Contract Labour is hired for a period not more than 15 days. Any change occurring in the particulars specified in the Registration or Licensing Certificate needs to be informed to the concerned Registering Officer within 30 days of such change. From combined reading of Section 7 and Rules 17 & 18 of the Contract Labour (Regulation and Abolition) Central Rules, 1971, it appears that the Principal Employer has to apply for registration in respect of each establishment. Other important point to note is that a License issued for One Contract cannot be used for entirely different Contract work even though there is no change in the Establishment.

Significant judgments of the Supreme Court in the matter are:

Steel Authority of India Ltd. vs. National Union of Waterfront Workers & Ors. The Sail judgment stated that the contract workers would have no right to automatic absorption upon abolition. They would only have a right to a preference in employment if permanent workers were to be employed to fill in the vacancies created by the removal of the contract workers

upon abolition. The Bench further added that on issuance of notification by the appropriate Government under S 1 0(1) prohibiting employment of contract labour in a given establishment, it is for the contractor to provide work to his labour in other establishments, where the contract labour system is not prohibited. This decision reversed the Supreme Courts decision in Air Indias Case (contract labour of the erstwhile contractor stand absorbed on the rolls of the Principal employer on abolition of contract labour system by appropriate Government under section 10 of the Act).

2. Maharashtra General Kamgar Union vs. Cipla Ltd. Gist of this judgment is that, if contract workers filed a complaint of

any unfair labour practices against any principal employer alleging that he was, in fact, their employer and that the contractor was a mere name-lender interposed in the relationship merely to shield the principal employer, this complaint would become non-maintainable.

Question 1 : A workman is deemed to be employed as Contract Labour when____?

Select one:

a. he is hired in connection with the work of an establishment by or through a Contractor.

b. he is hired in connection with the work of an establishment as a regular employee

c. Both a & b

d. None of the options

Question 2

Any change occurring in the particulars specified in the Registration or Licensing Certificate needs to be informed to the concerned Registering Officer within_______?

Select one:

a. 45 days of such change.

b. 60 days of such change.

c. 7 days of such change.

d. 30 days of such change.

Question 3

As per Contract Labour (Regulation & Abolition) Central (Amendment) Rules, 2017, every contractor or principal employer shall upload a unified annual return in the  specified in these rules on or before the February 1 following the close of the year to which it relates.

Select one:

a. Form XXIV

b. Form XXV

c. Form XX

d. Form XXII

Question 4

As per this case study , “Contract labour accounts for 55% of public sector jobs and 45% of those in the private sector. Only about 300,000 contract labourers out of an estimated 80 million are employed in the organised sector” . This starement is ___?

Select one:

a. FALSE

b. TRUE

c. Partially Wrong

d. None of the options

Question 5

As Per this Case study , The Contract Workmen are hired, supervised and remunerated by the Contractor, who in turn, is remunerated by

Select one:

a. The Government agencies Only

b. By Himself

c. The Establishment hiring the services of the Contractor.

d. Both A & B

Question 6

as per this case study , The Judgement of supreme Court – “if contract workers filed a complaint of

any unfair labour practices against any principal employer alleging that he was, in fact, their employer and that the contractor was a mere name-lender interposed in the relationship merely to shield the principal employer, this complaint would become non-maintainable”. This refers to which of the following ?

Select one:

a. Maharashtra General Kamgar Union vs. Pfizer Ltd

b. Steel Authority of India Ltd. vs. National Union of Waterfront Workers & Ors

c. Maharashtra General Kamgar Union vs. Cipla Ltd

d. Steel Authority of India Ltd. vs. Maharashtra General Kamgar Union

Question 7

Contract Labour Act  applies to the Principal Employer of an Establishment and the Contractor where in ______are employed or were employed even for one day during preceding 12 months as Contract Labour.

Select one:

a. 10 or more workmen

b. 12 or more workmen

c. 20 or more workmen

d. 20 or Less workmen

Question 8

Contract workmen are ___?

Select one:

a. Direct employees

b. Indirect employees

c. Partially Permanent Employees

d. Either a or B

Question 9

The Object of the Contract Labour Regulation and Abolition) Act, 1970 is to

Select one:

a. prevent exploitation of contract labour

b. to introduce better conditions of work

c. Both a & B

d. None of the options

Question 10

Which of the following options is/are reasons that a Contract Labour is different from Direct Labour ?                    (A) Different  in terms of employment relationship with the establishment . (B) Different in terms of method of wage payment. ( C ) Contract Labour is not on the payroll of the company. (D) Contract Labour is a Direct Employee

Select one:

a. Only A & B

b. Only A & C

c. Only B

d. Only A, B & C

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Module V : Labour Laws

Case Study

The city is an old industrial centre in North Central India which flourished in cotton textiles, leather and leather products, woollen textiles, engineering products, etc. In the recent times though, the city has been in the news only for its rapid industrial decline, fast deteriorating socio-economic order and very high unemployment and crime rate. It had a militant working class movement, but as the capital has moved out of the city and the mills have closed down, the trade unions are in shambles and the working class movement has virtually collapsed.

The present case is situated in a premiere technological institute of the country: the Institute was set up in one of the most important industrial centres of the country in the late 1950s with US collaboration as part of the Nehruvian post-colonial nation building project. The Institute functions on the principles of parliamentary democracy and accords fair amount of autonomy to the faculty. In the early years, probably because of being part of the first generation in the phase of post-colonial nation building, some of the members of the faculty brought in notions of social concerns to this fully residential campus (mainly for teaching staff and students and partly for non-teaching staff as well). Some of them were able to find academic as well as practical expressions for their social concerns within the campus, given the liberal environment and a degree of academic freedom. The liberal culture of the campus was further enhanced by a vibrant employees’ union which came up in the early 1970s.

Employees at the lower levels were mostly from nearby places, while faculty and students had fair representation from different parts of the country. Efforts at unionisation of the temporary workforce in the Institute began in the late 1960s with participation of the academic community. The general socio-political environment of the region, country, and probably the whole world in the 1960s and 1970s, affected and furthered the movement in the Institute too. This resulted in a strong trade union, and eventually, a permanent work force within a few years. But by the 1990s, with the onset of the economic reforms, the industrial relations in the Institute too, as across the whole country, entered a new phase. In the last decade and a half many of the labour and union rights have receded, as permanent work and workers are being rapidly replaced by contingent workforce.

In the past decade, sub-contracting of work by the Institute has multiplied manifold, and therefore, the contingent workforce has also commensurately increased. Many kinds of jobs have been completely taken over by the contingent workers – construction and civil maintenance, security, sanitation, horticulture, and even research assistance and office help; though the last category is not dealt with in the present work. There has also been a phenomenal rise in the infrastructural facilities within the Institute, primarily because of monetary contributions from the alumni (mostly from those who have been ‘successful’ abroad) which have been pouring in, in the wake of liberalisation. Though we do not have the formal figures, yet by an informed estimate, at present the strength of the permanent work force is probably matched by the contract and temporary workers and would be around a couple of thousand each. The discussion here is limited to the so-called ‘unskilled’/ ‘semi-skilled’ manual work, where minimum wage is an issue.

Demand for Minimum Wages (MWs)

The MWs emerged as an issue in the campus in the early 1990s. An informal group called the Vivekanand Samiti (VS) began a literacy drive amongst the migrant Chattisgarhi workers employed on some of the construction sites in the campus. Initially the effort concentrated in getting the children of the workers to attend a temporary school . Through interactions with these children the volunteers of VS gradually came to know about the miserable wages being paid to the workers in the campus (which was even less than half of the stipulated minimum wages). They decided to take up the issue with the Institute authorities. Legally the primary responsibility for ensuring the payment of minimum wages lies with the ‘principal employer’, the Institute in this case. In actual practice the contract workers have little job security and no employment rights. No formal rolls are maintained by the contractors, and since these workers have no organisation to mediate with the employers, they literally work at the mercy of the employers’ will and live with the constant fear of losing their employment. Hence all these organising efforts by the VS had to be done surreptitiously. Though, in the process a few workers did loose their jobs and were blacklisted by the whole set of contractors working for the Institute. Some of these workers formed the core of the later efforts at organising, which led to the formation of a workers’ cooperative in the campus.

The simplicity of the issue, the absolutely unambiguous position of the law of the land on the minimum wages, and the overall irony of the context of an elite institution with no apparent dearth of funds and resources not paying the MWs to the lowest rung of workers, caught the imagination of many amongst the academic community, at least for a while in the beginning. Several faculty members and students supported the cause and the Institute found itself in an indefensible position as to the reasons for non-payment of minimum wages, but for some practical difficulties in implementing the same given the market forces, etc. Though the administration could not wish away the issue of MWs it could not implement it either as the body of contractors unitedly opposed it by adopting several deterring tactics like firing the protesting workers, threatening to stop work, etc. Under these circumstances the Institute formed a committee of a few concerned faculty members to deal with the issue. But given the political economy of MWs, the committee could not make much headway and failed to ensure the payment of minimum wages as a norm within the campus .

The core group of agitating workers and the initiated middle class supporters came up with an ingenuous solution to the problem. They decided to form a workers’ cooperative that would bid on behalf of the workers and take up contracts so that the workers would have the freedom to pay themselves the MWs without the interference of the contractors. Thus a workers cooperative, Samiti, was formed in 1992, though in its early phase it faced significant resistance from the administration. The Institute administration even refused to give tender forms to Samiti, and when the fledgeling cooperative did manage to bid, they would reject it on some ground or another. But Samiti survived and over the years, has grown to a size of around 200 members at present, and is widely acknowledged as the only contracting organisation on the campus which pays the MWs. Samiti, including its members and sympathisers, have been taking up several cases of gross violation of MWs and bringing them to the attention of the larger community and the authorities. But for all practical purposes except for Samiti market forces largely decided the norm . for the wages in the campus, irrespective of the stipulated MWs. But this is not the place to relate Samiti’s tale. We have attempted to capture some of the organisational features of Samiti in another work (Varman & Chakrabarti, 2004). We will touch upon Samiti in the final section to make certain observations regarding the labour markets.

As has been mentioned earlier, besides the global phenomena of recession of worker rights the situation in the campus was aggravated over the 1990s, probably because of a spurt in construction activity aided by huge sums of alumni money, where large numbers of workers (many of them migrants from distant places) were employed at wages which were only 50-60% of the statutory minimum wages. Concerned members of the Institute community have been regularly voicing their concerns at several formal and informal forums on the issue; some of the instances are as follows.

§ At least two reports on non-payment of minimum wages in the campus were prepared by students as part of their course work – one comparing the state of construction workers vis-à-vis the Minimum Wages Act, which made a grim reading on the conditions of the workers in the campus. The second report compared the state of other contract workers on cleaning work with those of Samiti and brought out how the latter was an exception in paying MWs. The faculty forum convener forwarded both the reports along with a letter signed by a set of faculty members expressing their concern ‘about the blatant flouting of minimum wage laws for contract jobs’, to the higher authorities seeking their response.

§ Several individual workers risked their jobs to register grievances about non-payment of minimum-wages. Many of these grievances were channelled either through the concerned members of the academic community, Samiti or Valmiki Samaj, a local chapter of an all India organisation of the Valmiki caste, who are involved in most of the cleaning work in the campus.

Probably because of all these sustained efforts, in November 2000 the administration decided to constitute another committee for monitoring minimum wages in the campus – Monitoring Committee – Wages (MCW). The appointment letter of the Committee was all of one line which indicated that probably no serious thought had been given to the functioning and role of the committee and it could at best be considered an official acknowledgement of all the criticism levelled on the issue of MWs. All that the office-order said was:

The committee shall oversee the disbursement of wages to Daily Wage Workers engaged in various units of the Institute and deal with the related disputes.

The following is the account of the journey of MCW from its inception in December 2000 to December 2005. An important aspect of the Committee and its functioning which should be mentioned at the outset, has been the sustained support it received from a large informal group consisting of members of the faculty, students, staff and other members/ residents of the campus community. The MCW had to tread uncertain and often extremely contestable territories, with almost no previous experience or precedence to go by. Under these circumstances the informal group acted as a sounding board both for new ideas as well as for delicate decisions. On situations of impasse with the authorities as well as with the contractors and the administration, the informal group has also formally supported the MCW, including by being part of official delegation on behalf of the Committee. Though it is difficult to adequately capture the significance of this informal group within the scope of the present note, one can only assert that such a group has been continually an integral part of the Committee’s efforts in various ways. In the following section we will attempt to capture various phases of the Committee and volunteers’ work in brief.

Question 1 : As Per this Case Study , a workers cooperative, Samiti, was formed in _____?

Select one:

a. 1950

b. 1992

c. 1890

d. 1990

Question 2

As per this case study ,An informal group called _____ began a literacy drive amongst the migrant Chattisgarhi workers employed on some of the construction sites in the campus.

Select one:

a. ALL India Trade union Congress (AITUC)

b. The Vivekanand Samiti (VS)

c. Bhartiya Mazdoor Sangh (BMS)Bhartiya Mazdoor Sangh (BMS)

d. Both a & C

Question 3

As per this case study -” In actual practice the contract workers have little job security and no employment rights. No formal rolls are maintained by the contractors, and since these workers have no organisation to mediate with the employers, they literally work at the mercy of the employers’ will and live with the constant fear of losing their employment”.  This statement is ___?

Select one:

a. True

b. False

c. Partially True

d. Partially wrong

Question 4

Efforts at unionisation of the temporary workforce in the Institute began in the______ with participation of the academic community.

Select one:

a. late 1960s

b. 1950’s

c. 1920’s

d. 1900

Question 5

In the past decade, sub-contracting of work by the Institute has multiplied manifold, and therefore, the contingent workforce has also commensurately increased. Many kinds of jobs have been completely taken over by the contingent workers – what are these jobs ?

Select one:

a. construction and civil maintenance

b. security, sanitation, horticulture

c. research assistance and office help

d. All of the options

Question 6

Legally the primary responsibility for ensuring the payment of minimum wages lies with __ ?

Select one:

a. the ‘principal employer’

b. the contractor Only

c. the Government

d. Both B & C

Question 7

Probably because of all the sustained efforts, in November 2000 the administration decided to constitute another committee for monitoring minimum wages in the campus  known as ?

Select one:

a. Mentoring Community of- Wages (MCW).

b. Marketing Committee – Wages (MCW).

c. Mentoring Committee – Wages (MCW).

d. Monitoring Committee – Wages (MCW).

Question 8

Reports on non-payment of minimum wages in the campus were prepared by students. (A)Ccomparing the state of construction workers vis-à-vis the Minimum Wages Act. ( B) Comparing the state of other contract workers on cleaning work with those of Samiti and brought out how the latter was an exception in paying Minimum wages.

Select one:

a. Only A

b. Only B

c. None of these options

d. Both a & B

Question 9

The city is an old industrial centre in North Central India which flourished in cotton textiles, leather and leather products, woollen textiles, engineering products, etc. In the recent times though, the city has been in the news only for

Select one:

a. its rapid industrial decline

b. fast deteriorating socio-economic order

c. very high unemployment and crime rate.

d. All of the options

Question 10

Through interactions with these children the volunteers of VS gradually came to know about the____ ?

Select one:

a. miserable wages being paid to the workers in the campus

b. Wages were even less than half of the stipulated minimum wages

c. Both a& b

d. None of these

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ASSIGNMENT 2

Case Study

For right or wrong reasons, Bata India Limited (Bata) always made the headlines in the financial dailies and business magazines during the late 1990s. The company was headed by the 60 year old managing director William Keith Weston (Weston). He was popularly known as a “turnaround specialist” and had successfully turned around many sick companies within the Bata Shoe Organization (BSO) group.

By the end of financial year 1999, Bata managed to report rising profits for four consecutive years after incurring its first ever loss of Rs. 420 mn in 1995. However, by the third quarter ended September 30, 2000, Weston was a worried man. Bata was once again on the downward path. The company’s nine months net profits of Rs 105.5 mn in 2000 was substantially lower than the Rs. 209.8 mn recorded in 1999. Its staff costs of Rs. 1.29 bn (23% of net sales) was also higher as compared to Rs. 1.18 bn incurred in the previous year. In September 2000, Bata was heading towards a major labour dispute as Bata Mazdoor Union (BMU) had requested West Bengal government to intervene in what it considered to be a major downsizing exercise.

With net revenues of Rs. 7.26 bn and net profit of Rs. 300.46 mn for the financial year ending December 31, 1999, Bata was India’s largest manufacturer and marketer of footwear products. As on February 08, 2001, the company had a market valuation of Rs. 3.69 bn. For years, Bata’s reasonably priced, sturdy footwear had made it one of India’s best known brands. Bata sold over 60 million pairs per annum in India and also exported its products in overseas markets including the US, the UK, Europe and Middle East countries. The company was an important operation for its Toronto, Canada based parent, the BSO group run by Thomas Bata, which owned 51% equity stake.

The company provided employment to over 15,000 people in its manufacturing and sales operations throughout India. Headquartered in Calcutta, the company manufactured over 33 million pairs per year in its five plants located in Batanagar (West Bengal), Faridabad (Haryana), Bangalore (Karnataka), Patna (Bihar) and Hosur (Tamil Nadu). The company had a distribution network of over 1,500 retail stores and 27 wholesale depots. It outsourced over 23 million pairs of footwear per year from various small-scale manufacturers.

Throughout its history, Bata was plagued by labor problems with frequent strikes and lockouts at its manufacturing facilities. The company incurred huge employee expenses (22% of net sales in 1999). Competitors like Liberty Shoes were far more cost-effective with salaries of its 5,000 strong workforce comprising just 5% of its turnover.

When the company was in the red in 1995 for the first time, BSO restructured the entire board and sent in a team headed by Weston. Soon after he stepped in several changes were made in the management. Indians, who held key positions in top management, were replaced with expatriate Weston taking over as managing director. Mike Middleton was appointed as deputy managing director and R. Senonner headed the marketing division. They made several key changes, including a complete overhaul of the company’s operations and key departments. Within two months of Weston taking over, Bata decided to sell its headquarter building in Calcutta for Rs. 19.5 crores, in a bid to stem losses. The company shifted wholesale, planning & distribution, and the commercial department to Batanagar, despite opposition from the trade unions. Robin Majumdar, president, co-ordination committee, Bata Trade Union, criticised the move, saying: “Profits may return, but honor is difficult to regain.” The management team implemented a massive revamping exercise in which more than 250 managers and their juniors were asked to quit. Bata decided to stop further recruitment.

The management team implemented a massive revamping exercise in which more than 250 managers and their juniors were asked to quit. Bata decided to stop further recruitment. The management offered its staff performance based salary. In 1996, for the first time in Bata’s 62-year-old history, the company signed a long-term bipartite agreement. This agreement was signed without any disruption of work. Recalls Majumdar: “We showed the management that we could be as productive as any other union in the country.” In the six-year period 1993-99, Bata had considerably brought down the staff strength of its Batanagar factory and Calcutta offices to 6,700.

In fiscal 1996, Bata was back in the black with the company reporting net profits of Rs. 41.5 mn on revenues of Rs. 5.90 bn (Rs. 5.32 bn in 1995). In fiscal 1997, Bata further consolidated the gains with the company reporting net profits of Rs 166.9 mn on revenues of Rs. 6.70 bn. A senior HR manager at the company admitted that with an upswing in Bata’s fortunes, even its traditionally intransigent workers were motivated to do better. In 1997, Bata workers achieved 93% of their production targets. The management rewarded the workers with a 17% bonus, up from the 15% given in 1996.

By the end of 1997, Bata still faced problems of a high-cost structure and surplus labour. Infact, the turnaround had made the unions more aggressive and demanding. Weston had failed to strike a deal with the All India Bata Shop Managers Union (AIBSMU) since the third quarter of 1997. The shop managers were insisting that Bata honor the 1990 agreement, which stipulated that the management would fill up 248 vacancies in its retail outlets. It also opposed the move to sack all the cashiers in outlets with annual sales of less than Rs 5 mn, which meant elimination of 690 jobs.

In 1999, the Bata management in a bid to further cut costs announced the phasing out of several welfare measures at its Batanagar Unit. Among the proposals were near total withdrawal of management subsidies, canteen facilities, township maintenance, electricity and health care schemes for the employees’ families. Other measures were aimed at increasing productivity, reorganizing some departments and extending working days for some essential services. On January 14, 1999, the BMU submitted their charter of demands to the management. The demands mainly revolved around economic issues. In the list of non-economic issues was the demand for reinstatement of the four dismissed employees.1 The Union had also demanded the introduction of a scheme for workers participation in management. On the economic front, the Union had demanded a wage hike of around Rs. 90 per week, additional allowances as provident fund over the statutory limit by the management, increase in ‘plan bonus’ and introduction of attendance bonus for migrant workers.

In July 1999, BMU was finally able to strike a deal. It signed a three-year wage agreement that included a lumpsum payment of arrears of Rs. 4,000 per employee. The management agreed to include 10% of the 400 contract laborers at Batanagar in its staff.

Other gains included an average increase of Rs. 45.50 in the weekly pay of the 5,600 employees in Batanagar, an improved rate of DA and increase in tiffin allowance. However, canteen rates had been doubled from Rs. 0.75 for a meal to Rs. 1.50. For the 500 families staying at Batanagar, the electricity rates had been doubled to Rs. 0.48 per unit. BMU was successful in preventing the management from dismantling the public health unit in which 80 people were employed. In September 1999, the West Bengal State labour tribunal in an order justified and upheld Bata’s action of suspending and subsequent dismissing of three executive members of the BMU. The tribunal had provided no relief to the dismissed members who had been found guilty of assaulting the chief welfare officer at the Batanagar unit on November 26, 1996.

More than half of Bata’s production came from the Batanagar factory in West Bengal, a state notorious for its militant trade unions, who derived their strength from the dominant political parties, especially the left parties.

Notwithstanding the company’s grip on the shoe market in India, Bata’s equally large reputation for corruption within, created the perception that Weston would have a difficult time. When the new management team weeded out irregularities and turned the company around within a couple of years, tackling the politicized trade unions proved to be the hardest of all tasks

On July 21, 1998, Weston was severely assaulted by four workers at the company’s factory at Batanagar, while he was attending a business meeting. The incident occurred after a member of BMU, Arup Dutta, met Weston to discuss the issue of the suspended employees. Dutta reportedly got into a verbal duel with Weston, upon which the other workers began to shout slogans. When Weston tried to leave the room the workers turned violent and assaulted him. This was the second attack on an officer after Weston took charge of the company, the first one being the assault on the chief welfare officer in 1996. Soon after the incident, the management dismissed the three employees who were involved in the violence. The employees involved accepted their dismissal letters but subsequently provoked other workers to go in for a strike to protest the management’s move. Workers at Batanagar went on a strike for two days following the incident. Commenting on the strike, Majumdar said: “The issue at Bata was much wider than that of the dismissal of three employees on grounds of indiscipline. Stoppage of recruitment and continuous farming out of jobs had been causing widespread resentment among employees for a long time.”

Following the incident, BSO decided to reconsider its investment plans at Batanagar. Senior vice-president and member of the executive committee, MJZ Mowla, said2: “We had chalked out a significant investment programme at Batanagar this year which was more than what was invested last year. However, that will all be postponed.”

The incident had opened a can of worms, said the company insiders. The three men who were charge-sheeted, were members of the 41-member committee of BMU, which had strong political connections with the ruling Communist Party of India (Marxist). The trio it was alleged, had in the past a good rapport with the senior managers, who were no longer with the organization. These managers had reportedly farmed out a large chunk of the contract operations to this trio.

Company insiders said the recent violence was more a political issue rather than an industrial relations problem, since the workers had very little to do with it. Seeing the seriousness of the issue and the party’s involvement, the state government tried to solve the problem by setting up a tripartite meeting among company officials, the labor directorate and the union representatives. The workers feared a closedown as the inquiry proceeded.

For Bata, labor had always posed major problems. Strikes seemed to be a perennial problem. Much before the assault case, Bata’s chronically restive factory at Batanagar had always been plagued by labor strife. In 1992, the factory was closed for four and a half months. In 1995, Bata entered into a 3-year bipartite agreement with the workers, represented by the then 10,000 strong BMU, which also had the West Bengal government as a signatory. It was in 1998, that the company for the first time signed another long-term bipartite agreement with the unions without any disruption of work. Apprehensive about labor problems spilling over to other units, the company entered into similar long-term agreements with the unions at its manufacturing units at Bangalore and Faridabad.

In February 1999, a lockout was declared in Bata’s Faridabad Unit. Middleton commented that the closure of the unit would not have much impact on the company’s revenues as it was catering to lower-end products such as canvas and Hawaii chappals. The lock out lasted for eight months. In October 1999, the unit resumed production when Bata signed a three-year wage agreement

On March 8, 2000, a lockout was declared at Bata’s Peenya factory in Bangalore, following a strike by its employee union. The new leadership of the union had refused to abide by the wage agreement, which was to expire in August 2001. Following the failure of its negotiations with the union, the management decided to go for a lock out. Bata management was of the view that though it would have to bear the cost of maintaining an idle plant (Rs. 3 million), the effect of the closures on sales and production would be minimal as the footwear manufactured in the factory could be shifted to the company’s other factories and associate manufacturers. The factory had 300 workers on its rolls and manufactured canvas and PVC footwear.

In July 2000, Bata lifted the lockout at the Peenya factory. However, some of the workers opposed the company’s move to get an undertaking from the factory employees to resume work. The employees demanded revocation of suspension against 20 of their fellow employees. They also demanded that conditions such as maintaining normal production schedule, conforming to standing orders and the settlement in force should not be insisted upon.

In September 2000, Bata was again headed for a labour dispute when the BMU asked the West Bengal government to intervene in what it perceived to be a downsizing exercise being undertaken by the management. BMU justified this move by alleging that the management has increased outsourcing of products and also due to perceived declining importance of the Batanagar unit. The union said that Bata has started outsourcing the Power range of fully manufactured shoes from China, compared to the earlier outsourcing of only assembly and sewing line job. The company’s production of Hawai chappals at the Batanagar unit too had come down by 58% from the weekly capacity of 0.144 million pairs. These steps had resulted in lower income for the workers forcing them to approach the government for saving their interests.

Question 1 : according to this case study ,throughout its history, Bata was plagued by labor problems . What were these? (A) frequent strikes (B) lockouts at manufacturing facilities.

Select one:

a. Only A not B

b. Only B not A

c. Both A & B

d. None of these

Question 2

AIBSMU stands for _____ in this case study.

Select one:

a. All India Bata Shop Managers Union

b. All india Bata specialist Managers Union

c. All India Bata Shop Managerial Union Committee

d. All India Bata Shop Managers Trade Union

Question 3

As per this case study , managing director William Keith Weston (Weston), he was popularly known as ___?

Select one:

a. Turnaround expert

b. Turnaround specialist

c. Either a or b

d. None of these

Question 4

As per this case study ,Who among the following was deputed as as deputy managing director of Bata ?

Select one:

a. William Keith Weston

b. R. Senonner

c. Mike Middleton

d. None of these

Question 5

As per this case Study – ” the three men who were charge-sheeted, were members of the 41-member committee of BMU, which had strong political connections with the ruling Communist Party of India (Marxist)”. This Statement is ___?

Select one:

a. True

b. Partially true

c. False

d. Partially Wrong

Question 6

Bata had a major labour dispute with BMU related to which of the follwing issues ?

Select one:

a. Low wages

b. non payment of wages

c. major downsizing exercise

d. All of the options

Question 7

In 1992, the factory was closed for four and a half months. In 1995, Bata entered into a______, represented by the then 10,000 strong BMU, which also had the West Bengal government as a signatory.

Select one:

a. 5-year bipartite agreement with the workers

b. 3-year bipartite agreement with the workers

c. 3-year bipartite agreement with the management

d. 5-year bipartite agreement with the management

Question 8

In July 1999, BMU was finally able to strike a deal. It signed a three-year wage agreement that included___?

Select one:

a. Total Payments to all workers

b. a lumpsum payment of arrears of Rs. 4,000 per employee

c. a lumpsum payment of arrears of Rs. 1,000 per employee

d. All Pending payment of arrears + Rs. 10,000 per employee

Question 9

In September 2000, Bata had  a major labour dispute with ?

Select one:

a. Bata Mazdoor Union (BMU)

b. Bharatiya Mazdoor Sangh (BMS)

c. All india Trade union Congress (AITUC)

d. None of these

Question 10

Which of the following was/were the demands of the union in Bata ?

Select one:

a. a scheme for workers participation in management

b. wage hike of around Rs. 90 per week

c. attendance bonus for migrant workers

d. All of the options

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Organizational Change & Development -Semester III

Organizational Change & Development -Semester III

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Module I : Organizational Development: An Introduction

Case study

British Gas is a British-owned energy supplier. British Gas is the UK s leading provider of energy and has over 16 million customer accounts. It employs over 20,000 people and was voted one of the 25 Best Big Companies to Work For by The Sunday Times in the UK in 2011. All organisations have employees working at different levels of responsibility. At the bottom, a business depends on its operatives to produce the products or services. Team leaders perform the day-to-day management role, with operational and senior managers setting direction and strategy for the business as a whole.

Theorist Henri Fayol identified the key areas of manager’s work. He proposed that the five key functions of management are:

Planning

• Organising

• Commanding

• Coordinating

• Controlling

Within British Gas, each individual operates as a member of a team, which is led by a team manager who has a range of supervisory duties. These include monitoring the performance of their team members. At British Gas the team managers are referred to as service managers. Service managers of electrical and technical service engineers need to organise routines in order to meet the needs of customers. They must also positively promote British Gas and its products. Their expert knowledge helps them to provide customers with sound advice that opens up opportunities to create new business. Occasionally, they have to deal with customer complaints. This is why customer service and good communication skills are of great importance to this role. As leaders of a team, all service managers within British Gas set personal and group targets for employees within their span of control. They also communicate their ideas and thoughts to members of the team, to other service managers and to operational managers. At all times they need to maintain good working relationships with team members. Being able to communicate effectively and keep focused on strong customer relations helps them to manage their workload effectively. Some of the benefits of being a service manager include a competitive salary, performance related bonuses and good pension provision.

In many cases an individual who started at British Gas as an apprentice, trainee or qualified engineer or electrician can advance to become a service manager. Career progression may eventually enable them to become an operational manager. The operational managers are responsible for making strategic decisions. To make such decisions operational managers require a range of key skills. These include skills and knowledge of customer service, teamwork, communication, IT and finance. As individuals progress from a service manager to operational managers within British Gas they need to up-skill. This helps them to adapt and develop as they undertake further senior responsibilities within the organisation. For example, they now have to take responsibility for customer satisfaction for a large part of the business. They do this by monitoring that work has been completed to the satisfaction of customers. Operational managers also have to monitor standards and set targets for improvements. They are responsible for managing budgets and have to ensure that their part of the business meet its budget objectives. At all times they must try to improve best practice. By doing this they can identify areas where costs can be reduced to improve profitability and efficiency. It is the vision of the operational managers that keeps the business moving forward, vital in such a highly competitive market.

Question 1 : According to theorist Henri Fayol, what are the key areas of manager’s work?

Select one:

a. Planning

b. Commanding

c. Controlling

d. All of the above

Question 2

How does a service manager take the responsibility to progress as an operational manager?

Select one:

a. The service managers have to take responsibility for customer satisfaction and for the progress they do it by monitoring that work has been completed to the satisfaction of customers

b. Performing the given task diligently

c. Encouraging the team to take extra responsibility

d. All of the above

Question 3

How is the hierarchical system within British Gas?

Select one:

a. Each individual operates as a member of a team, which is led by a team manager who has a range of supervisory duties

b. Each individual operates as a member of a team

c. All departments are led by the same team manager who has a range of supervisory duties

d. None of the above

Question 4

What are the benefits of a service manager at British Gas?

Select one:

a. Competitive salary

b. Performance related bonuses

c. Good pension provision

d. All of the above

Question 5

What are the responsibilities of an operations manager?

Select one:

a. Monitor standards and set targets for improvements

b. Managing budgets to ensure that their part of the business meet its budget objectives

c. Improve best practice

d. All of the above

Question 6

What are the skills that an operational manager should possess?

Select one:

a. Skills and knowledge of customer service

b. Communication Skills

c. Performance related bonuses

d. Both a and b

Question 7

What are the team managers referred as at British Gas?

Select one:

a. Line managers

b. Supervisors

c. Service managers

d. Team managers

Question 8

What is the role of operational manager?

Select one:

a. Making strategic decision

b. Monitoring the performance of their team members.

c. Deal with customer complaints

d. Provide customers with sound advice

Question 9

Which of the following are supervisory duties of team managers at British Gas?

Select one:

a. Managing the work of the team

b. Monitoring the performance of their team members.

c. Organising the work for each team member

d. All of the above

Question 10

Which of the following are the responsibilities of the service managers of electrical and technical department?

Select one:

a. Promote British Gas and its products

b. Provide customers with sound advice

c. Deal with customer complaints

d. All of the above

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Module II : Typology of Organizational Development Interventions

Case study

“A pharmaceutical machines manufacturing company got in touch with us when they were clogged by lot of internal challenges. They were unable to harness the market opportunities, or manage the work efficiently. They wanted to get into a Joint venture with a Multinational company in Germany, for which they had to set their company, ready in order to go through the audit and evaluation successfully.

After a detailed 360 degree diagnosis, we identified the gaps and stagnant areas. We drew an organizational developmental intervention and implemented it. This intervention ran over 12 months.

At the end of phase 1, the company saw the following improvements:

• Clear vision and mission for the management

• Long standing pending decisions on obsolete process and way of working made space for improved business processes.

• Inefficiencies were recorded objectively and handled through process refinement and employee training.

• Employee satisfaction was improved, through setting up and communicating the HR policies, defining Job roles and introducing performance management system.

• The overall top line of the company grew by more than 40% that year

• The company started attracting professional talent into the organization

Before Scenario the Challenges faced:

• Unable to harness growth/market opportunities. Stagnancy in Top Line

• To transform the organization from a conservative family owned business to a profession outfit.

• Production challenges

• Absence of HR setup or processes or policies

• Lack of clearly set processes made the working very person driven and time consuming.

• Resistance to Change at the staff level, Department Head level

• No Productivity Measures and the work at all departments was person driven rather than performance or process driven

An Organization Development Plan was drawn for first 12 months which is the First Phase, after a detailed diagnosis of the company.

• Priority Areas were identified and a Plan of Action was drawn.

• As a top –down approach we facilitated in recreating the Vision, Mission & values and set direction to where the organization wants to be in future.

• Organization restructuring for efficient manpower utilization

• Business Process Re-engineering to streamline the work flow

• Introducing best practices from other Industries, HR Strategy, HR Operational policies, Job descriptions, Manpower Planning, Recruitments

• Training and development, counseling and audit given to employees

In the second Phase, they introduced Performance Management System

• Departmental KPI’s were fine-tuned

• Job roles were revisited

• Performance Management Trainings were given to Managers and staff

• Supported to complete the implementation of the performance Management process

After the Interventions the company became a self-propelled organization. The organization finally became a system driven, target oriented. They were able to create the growth plan for the next 5 Years in place and plan for strategic joint ventures with world no 1 in respective fields in place.

Question 1 : By how % the overall top line of the company grew?

Select one:

a. 20%

b. 40%

c. 30%

d. 10%

Question 2

How long was the organizational developmental intervention carried on in the organisation?

Select one:

a. 5 Months

b. 3 Months

c. 2 Months

d. 12 Months

Question 3

How were the gaps and stagnant areas identified?

Select one:

a. Management discussion

b. Managerial role change

c. Detailed 360 degree diagnosis

d. None of the above

Question 4

In the first phase of intervention, which of the following improvements were seen within the organisation?

Select one:

a. Employee satisfaction was improved, through setting up and communicating

b. The overall top line of the company grew by more than 40% that year

c. Clear vision and mission for the management

d. All of the above

Question 5

What was introduced in the second phase of intervention?

Select one:

a. Performance Management

b. Introducing best practices from other Industries

c. Training and development

d. Business Process Re-engineering

Question 6

What was the challenge faced by the pharmaceutical company?

Select one:

a. Unable to harness the market opportunities

b. Manage the work efficiently

c. Internal challenges

d. All of the above

Question 7

What was the new strategy they looked forward for?

Select one:

a. Drop their line of business

b. Joint venture with a Multinational company in Germany

c. Re-engineering of the organisation

d. None of the above

Question 8

What were the objectives of the organisational plan in the first phase?

Select one:

a. Organization restructuring for efficient manpower utilization

b. Business Process Re-engineering to streamline the work flow

c. Departmental KPI’s were fine-tuned

d. Both a and b

Question 9

Which among the following challenges were faced by the organisation before the interventions?

Select one:

a. Stagnancy in Top Line

b. Production challenges

c. Absence of HR setup or processes or policies

d. All of the above

Question 10

Why was the company looking forward for interventions?

Select one:

a. They were clogged by lot of internal challenges

b. They were not able to manage their employees

c. Wanted to increase their expertise

d. None of the above

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Module III: Action Research & Organizational Design

Case Study

“Matt owns 10 mobile phone shops located across Northern Ireland. Although each outlet trades under the same name, Chatz, they are all very different. This is because Matt has always allowed the manager within each shop to have complete control over their respective outlet. Therefore, each of the stores has its own unique character in terms of store layout, presentation and location. They stock different brands of mobile phone and accessories and buy from different suppliers. Each of the stores is promoted locally.

Whilst this approach has served the business well in the past, Matt is planning to appoint a Purchasing Manager to take responsibility for stock purchases for all outlets.

Increasing levels of competition from national supermarkets and changes in consumer tastes have convinced Matt to centralise the decision-making process within Chatz. It is anticipated that many of the current responsibilities undertaken by store managers will be transferred to Head Office within the next 3 months. In considering the appointment of a Purchasing Manager, Matt is conscious of the need to widen the ‘span of control’ that this individual would have, to include supervisory duties related to successful management of stocks and the warehouse operations.”

Question 1 : How are the stores promoted?

Select one:

a. Regionally

b. Locally

c. Centrally

d. All of the above

Question 2

How has Matt planned to make the organisation a centralised organisation?

Select one:

a. By transferring the current responsibilities undertaken by store managers to the Head Office

b. By changing the role of store manager to purchase manager

c. By recruiting a supervisor for each store

d. All of the above

Question 3

The runing plan of Chartz has served __________ in the past.

Select one:

a. Inconveniently

b. Successfully

c. Incorrectly

d. All of the above

Question 4

What are the two ways Matt designed the organisation structure of Chatz?

Select one:

a. Each of the stores has its own unique character in terms of store layout, presentation and location

b. The stocks are of different brands of mobile phone and accessories and buy from different suppliers

c. The creation or change of an organization’s structure

d. Both a and b

Question 5

What is ‘span of control’?

Select one:

a. Individual will have to include supervisory duties related to successful management of stocks and the warehouse operations

b. Individual will have manage stocks and the warehouse operations

c. Individual will arrange stocks in the warehouses

d. None of the above

Question 6

What is meant by Organisational Design?

Select one:

a. Creation of roles & processes

b. The creation or change of an organization’s structure

c. Recruitment of new employees

d. Both a and b

Question 7

What is the new strategy planned by Matt for Chatz?

Select one:

a. Appointment of a purchasing manager

b. Change the promotional strategy

c. Change the names of the trade outlets

d. None of the above

Question 8

What is thought to be the responsibility of the purchasing manager?

Select one:

a. Managing the warehouse

b. Managing the stocks

c. Stock purchases for all outlets

d. All of the above

Question 9

What strategy has Matt thought of applying in the decision making process of Chatz?

Select one:

a. Centralised decision making

b. Decentralised decision making

c. Formal decision making

d. None of the above

Question 10

What will Matt have to do with the appointment of purchasing manager?

Select one:

a. Reduce the store managers

b. Widen the ‘span of control’

c. Manage the stocks in the warehouse through proper inventory system

d. None of the above

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MODULE IV : ORGANIZATIONAL DEVELOPMENT INTERVENTIONS

Case study

“The problem:

Linda, the CEO of a global software development company, knew she needed to have a tough conversation with her senior management team about how they were working together – or, more precisely, how they were not working together. Communication on the team had broken down because different team members had varying perspectives on important issues, and were not finding productive ways to address them. Some were angry but silent, while others were fighting openly – and loudly. The team knew they needed to discuss how to communicate across departments, how to make decisions together as a team, and how to manage the hand-off from the Sales department to Engagement Management once a new client had been signed on, a process that had been historically unclear and was getting more and more fraught with confusion over time.

The underlying problem:

We conducted our initial round of diagnostic interviews with each member of the 6-person senior management team. We discovered that there was a long-running history of miscommunications and turnover on the leadership team that contributed to the current difficult team dynamics. In particular, two members of the team represented opposite views from one another on a series of topics facing the team. These two team members, the Chief Marketing Officer and the Chief Technology Officer, had very different perspectives on how certain decisions had come to be made, and how those should now change. Linda, the CEO, was unsure how to manage the quickly deteriorating relationship between the CMO and CTO, but she knew something needed to be done.

The solution:

After the initial interviews, we helped the CMO and the CTO explore the nature of their relationship, their different roles in the company, as well as their different management styles and personalities. We enabled them to listen to one another, and to share their own perspectives, reasoning and interests. While they still disagreed on some topics, they discovered that some of their initial disagreements had been the result of misinterpretations and stylistic communication differences. This helped them give one another the benefit of the doubt more readily than before, and to agree on two major decisions that had previously been deadlocked and were holding up the team. They recommended those decisions to the CEO.

As the relationship between the CMO and CTO improved, we facilitated a series of team-wide meetings. We put the thorny issues facing the team on the table for discussion, one by one. The team discussed its communication and decision-making processes and the hand-off from Sales to Engagement Management: how did these happen at the company today? What worked, and what didn’t? How did this team want these to work going forward?

Results:

Through the team-wide meetings, each of the officers made a series of commitments for actions to take in the next 3 quarters to follow up on the solutions the team had generated. The CEO committed to being more proactive when disagreements on the team arose, and to tracking everyone’s commitments over time.

Over the next few months, the senior management team identified how best to make decisions going forward, how to communicate in good times as well as under stress, and they resolved the Sales/Engagement Management hand-off. As a result, the company’s overall bottom line improved by 25% and the working relationships and satisfaction of the senior management team members increased significantly.

Process results:

Through this experience, each of the team members also learned how to more authentically listen to other people’s viewpoints and how to calmly and more effectively express their own. They learned that sometimes what drives other people’s behavior is not what it seems on the surface. The CMO and CTO in particular learned that people’s viewpoints are impacted as much by the role they play in the organization as by their personality. They used this knowledge to minimize jumping to conclusions before trying to understand the other person’s motivations and perspective.”

Question 1 : How did the senior management team intervention helped the organisation ?

Select one:

a. The management could identify the best way to make decisions going forward

b. The management knew how to communicate in good times as well as under stress

c. The management could resolve the Sales/Engagement Management hand-off

d. All of the above

Question 2

How did this strategy of team intervention help the organisation?

Select one:

a. The working relationships and satisfaction of the senior management team members increased significantly

b. The company’s overall bottom line improved by 25%

c. The company managed to change the roles in the management level

d. Both a and b

Question 3

What is the % of overall improvement?

Select one:

a. 50%

b. 25%

c. 30%

d. 45%

Question 4

What was the cause discovered for disagreement in their discussion on reasoning and perspective sharing?

Select one:

a. Misinterpretations and stylistic communication differences

b. Miscommunication

c. Misinterpretation

d. None of the above

Question 5

What was the first step taken to resolve the misunderstanding between the CMO and CTO?

Select one:

a. Explore the nature of their relationship

b. Different roles in the company

c. Different management styles and personalities

d. All of the above

Question 6

What was the issue found after the diagnostics interview?

Select one:

a. Miscommunications and turnover on the leadership team

b. Team dynamics

c. Team management

d. None of the above

Question 7

What was the next step taken after sorting the relationship between CMO and CTO

Select one:

a. Team meeting with the CEO

b. Team-wide meetings for discussion on thorny issues

c. Change of roles within the team

d. All of the above

Question 8

What was the result of team-wide meeting?

Select one:

a. They were able to make team goals

b. They could decide the targets for the year

c. Each of the officers made a series of commitments for actions to take in the next 3 quarters

d. None of the above

Question 9

What were the leanings for the senior management team from the intervention?

Select one:

a. How to manage team meetings

b. How to more authentically listen to other people’s viewpoints

c. How to calmly and more effectively express their own views

d. Both b and c

Question 10

Who were the team members that represented opposite views from one another on a series of topics facing the team?

Select one:

a. Chief Marketing Officer

b. Chief Technology Officer

c. Chief Finance officer

d. Both a and b

10 on 10

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Module V : Change Management

Case Study

When Asa Griggs Candler founded The Coca-Cola Company in the late 1800s, there was no way he knew his company would one day be valued at upwards of $180 billion. That’s a lot of money for a business that sells soft drinks.

But Coca-Cola didn’t become the powerful force it is today by sheer chance.

An illustration: In the 1980s, Coke’s biggest rival, Pepsi, was aggressively targeting it. This caused Coca-Cola to reevaluate its offerings. Eventually, the company decided to concoct a new, sweeter soda. They called it simply New Coke.

Unfortunately, the public didn’t take too kindly to the new beverage. But Coke’s executives didn’t let the mishap derail their success.

Quickly, management decided to pull New Coke and replace it with the older, established formula. Lo and behold, Coca-Cola Classic was born, and Coke maintained its market dominance.

Question 1 : During which period was Pepsi introduced as a rival to Coke?

Select one:

a. 1880s

b. 1980s

c. 1970s

d. None of the above

Question 2

How did Coca-Cola expand its market?

Select one:

a. By introducing simply New Coke

b. By introducing diversified products

c. By establishing the formula of Lo and behold

d. None of the above

Question 3

Introduction of which product shook the market for Coke?

Select one:

a. Mirinda

b. Limca

c. Pepsi

d. None of the above

Question 4

What change strategy did Coca-Coal adapt to compete with its rival Pepsi?

Select one:

a. Coca-Cola decided to concoct a new sweeter soda called simply New Coke

b. Coca-Cola introduced a substitute similar to Pepsi

c. Coca-Cola started advertising more

d. None of the above

Question 5

What does Coca-Cola primarily sell?

Select one:

a. Sweetened carbonated beverages

b. 500 brands to customers in over 200 countries

c. Sugary Drinks

d. All of the above

Question 6

What was the value of the company in 2016?

Select one:

a. $180 billion

b. $120 billion

c. $ 150 billion

d. $ 130 billion

Question 7

When does Coca-Cola enact on their change strategy?

Select one:

a. If there is a customer demand

b. If there is a drop in sales

c. If there is a drop in sales

d. If there is and market positioning change

Question 8

When the simply New Coke strategy did not work, what was the new change management step taken by the management?

Select one:

a. Pulled the New Coke and replace it with the older

b. Named the older coca-cola as Coca-Cola Classic

c. Established a formula Lo and behold

d. All of the above

Question 9

Which among the following are other products of Coca-Cola?

Select one:

a. DASANI

b. Vitamin water

c. Evian

d. All of the above

Question 10

Who is the founder of Coca-Cola?

Select one:

a. Asa Griggs Candler

b. Caleb Bradham

c. John Pemberton

d. None of the above

10 on 10

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Assignment 2

Case Study

“In the years since it was founded in 1973, the Sacramento Natural Foods Co-op has blossomed into a $15 million business. With 7,000 members/owners, it is the second largest single-store grocery cooperative in the nation in terms of sales and volume. However, when a vocal minority of its democratic membership quashed plans to expand to a second store, the business was at a crossroads. With tensions running high, Cultrera interviewed Eric Douglas of Leading Resources Inc. (LRI). Cultrera was impressed by Douglas’ track record for managing change and gaining consensus within large organizations. “I was looking for someone with really good communication skills,”Cultrera said.

D2K: Establishing Trust as a Foundation for Long-term Growth

Together Douglas and Cultrera mapped out a five-stage process they called “Directions 2000” or “D2K.” The process was carefully crafted to engage as many member-owners as possible in a productive dialogue with management and each other. At each stage of the process, Douglas guided the participants toward an understanding of the complex business issues under consideration while improving their communication and problem-solving skills. Because the issues were complex, and emotions were running high around the issue of expansion, flexibility had to be at the heart of the process itself.

They got into the process themselves and realized that changes needed to be made and the proceeded following the steps below:

Stage 1: Identifying Basic Values

The guiding force behind any effective strategic plan is a clearly articulated set of values and a strong vision. But with member-owners representing a broad demographic spectrum, getting their agreement on a common vision was extremely challenging. Douglas and LRI consultants addressed the challenge by organizing 13 focus groups – 200 people representing specific constituencies such as top shoppers, most active owners and staff – to brainstorm about values and vision.

Stage 2: Casting a Wider Net

Using input from the focus groups, LRI drafted a survey with 50 questions about values and visions and distributed it to all 7,000 Co-op member-owners. LRI’s analysis of the 1,645 returned surveys confirmed that pricing was most important to members. Member-owners were evenly divided on the question of whether to expand to additional locations. A third issue that came into focus from the survey was the 5% member-owner discount: Owners did not want to give it up, even if it meant they paid higher prices in the store.

Stage 3: Moving Beyond Conflict to Strategy

With the survey data in hand, a group of 25 people – comprised of 15 member-owners, seven members of the Board of Directors and three members of management – began working together as the D2K Planning Team under the guidance of LRI consultants.

Within a few weeks, the team had defined the purpose and values – what Douglas calls the “strategic foundation.” The team then faced the question of vision – and the deep conflict over whether or not the Co-op should expand to a second store.

As a first step, Douglas broke the drafting committee into two teams to generate deeper discussion. The resulting dialogue between the teams ultimately led to a draft vision that called for the Co-op to extend its services “to as many people as possible in the communities we serve.”

“This vision was based on a philosophy of inclusion,” said Keat who was a Planning Team member. “The Co-op offers something very special in the quality of its products, its support for local farmers, and its reliance on cooperative economic principles. Our vision was to share that.”

“We tested this vision again and again within the Planning Team,” Douglas said. As they grew more comfortable, team members used a combination of brainstorming exercises, management input and survey feedback to develop seven key goals to achieve the vision. LRI consultants carefully translated their decisions into a draft strategic plan.

Stage 4: Honoring the Process through Feedback

The next step was presenting the draft plan to member-owners. Rather than ask for “thumbs up or thumbs down,” LRI created a survey asking member-owners to rate each component of the plan, as well as the process itself. Member-owners were also invited to attend “town hall” forums to discuss the draft and provide feedback.

The resulting feedback was overwhelmingly positive. More than 95% of those responding said they supported the process. More than 90% said they supported the vision. Even more surprising was that, “Many of the member-owners who approved the plan had only been touched tangentially by the process – through taking the survey or reading about it in the Co-op’s newsletter,” Douglas said. “But because they had been touched, they supported the change.”

Stage 5: From Approval to Action

After unanimously voting to approve the plan, the Board handed it over to management to implement. “It makes my job as general manager a whole lot easier,” Cultrera said. “Now, when we run into pockets of controversy or resistance, it’s very easy to say, ‘Well, thank you. I really appreciate your input. But we heard from a lot of people who said this is what they want us to do.’ I feel like when there are other issues we need to face on a nitty-gritty level, we can call that process up again.”

Roadmap to the Future: From Plan to Action

That opportunity was right around the corner. Fresh from the D2K victory, the Co-op again hired LRI to implement one of the plan’s key initiatives. This was the hot button issue of deciding whether to keep or modify the 5% member-owner discount.

True to the D2K process model, Douglas and Cultrera ensured a high level of member-owner involvement at every stage. They convened a half-dozen “focus groups” to educate member-owners about the impacts of the discount. As with D2K, a Planning Team representing a broad spectrum of viewpoints was selected by LRI to explore alternatives and make a recommendation to the Board.

“At that point, we ran up against the fact that grocery store finance is not easy,” said Douglas. “Yet the team had to learn it in order to make a cogent decision.”

As team members became convinced of the wisdom of changing to the discount structure, some wanted to survey member-owners about the alternatives they were considering. “But a new survey would only confirm what the earlier survey told us,” Douglas said. “Without going through the education process, people would resist giving up the discount.” The team finally agreed to stage a series of forums that would bring member-owners from the Planning Team face to face with fellow member-owners still skeptical about making a change.

It was a critical part of the process that Mendenhall calls “transformative.” “One planning team member really turned the group around just on the force of her own presentation,” Mendenhall said. “As she talked about what she and the group had gone through, you’d start to see heads nod. You could see she felt it from the heart.”

With positive feedback from member-owners, the Board approved changing to an end-of-the-year patronage refund that has worked well at a number of co-ops throughout the country, combined with special pricing programs such as monthly category specials. Some of the original benefits – such as a 10% discount on Owner Appreciation Days – remained in force.

“We’ve learned that there are a variety of ways to involve members in decision-making, besides just sending everything out for a member vote,” said Mendenhall. “Communication and cooperative education is very important.”

Cultrera agrees. “Because we kept the lines of communication open with the ownership throughout this long process, we heard from people we had never heard from before. By the end of it, member-owners clearly honored the process, so they trusted the plan. It’s given the organization a tremendous amount of strength and ability to keep moving forward.”

The Co-op’s annual sales increased to $17 million. Its employees had received an across-the-board pay increase reflecting the plan’s commitment to a quality workplace. Meanwhile, the Co-op had begun looking at new locations for a second store, this time with the clear support of its owners.

Question 1 : According to Menden hall, what is important in decision-making?

Select one:

a. Communication

b. Cooperative Education

c. Talking to the team

d. Both a and b

Question 2

After the planing stage, what is the next step of presenting the draft plan called?

Select one:

a. Honoring the process through feedback

b. Moving beyond conflict to strategy

c. Casting a wider net

d. None of the above

Question 3

What is the new process introduced by Douglas and Cultrera?

Select one:

a. D2K

b. Directions 2000

c. D3K

d. Both a and b

Question 4

What was the step taken to approve the plan?

Select one:

a. Unanimously voting

b. Implementing the plan

c. Prepared the employee for new projects

d. None of the above

Question 5

Which among the following was the first step taken while incorporating the new process?

Select one:

a. Casting a Wider Net

b. Identifying Basic Values

c. Moving Beyond Conflict to Strategy

d. None of the above

Question 6

While identifying basic values how did Douglas and LRI address the challenges?

Select one:

a. By guiding the employees at every step

b. By organizing 13 focus groups – 200 people representing specific constituencies

c. By managing the employees

d. All of the above

Question 7

Who worked towards the planning of D2K after the survey?

Select one:

a. 15 members owners

b. 7 members of the Board of Directors

c. 3 members of management

d. All of the above

Question 8

Why did Douglas break the drafting committee into two teams?

Select one:

a. To generate deeper discussion

b. To reduce people in one forum

c. To manage employee problems

d. None of the above

Question 9

Why did Douglas guide the participants at every stage?

Select one:

a. Because the issues were complex

b. Because emotions were running high around the issue of expansion

c. Because flexibility had to be at the heart of the process itself

d. All of the above

Question 10

Why was the new process crafted?

Select one:

a. To engage as many member-owners as possible in a productive dialogue with management and each other

b. To improve employees communication skills

c. To manage employee problems

d. None of the above

10 on 10

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