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