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Case Study

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Malaika Kaleem
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10 views

Case Study

Uploaded by

Malaika Kaleem
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 1

30 PART 1 INTRODUCTION
recommended appointment of labor officers and other changes, including emphasizing
the need to collect data for use in policy making and decisions. The changes
suggested led to bringing in a degree of standardization, which became the early
moves to introduce personnel management in Indian organizations. Formation of trade
unions, with close link with political leaders like Mahatma Gandhi (Textile Labor
Association in Ahmedabad, founded in 1920) also influenced the way industrial
workers were managed.
At the same time, there were progressive employers who on their own cared about the
well being of their employees. For example, Tata Steel had introduced a series of
welfare measures for its workers, much before it became mandatory by law. (See
Table 1-1).
After India gained independence in 1947, considerable improvements happened in the
personnel management approach of organizations. The post-independence period
encouraged mixed economy as the Indian growth model. Industrial organizations were
broadly classified as public sector (including the administrative arm of the
government) and the private sector. Public sector organizations were the largest
employers and received huge investments. The Constitution of India had the
objective of achieving socialistic society and various constitutional provisions
supported giving protection to the working class. Numerous legislations were
introduced to protect workers, and specific officials were appointed to take care
of worker interests, notably the office of the Welfare Officer in large factories
and plantations.
Along with industrialization, the trade union movement also grew in India. The
rapid growth of trade unions also
catalyzed the development of personnel systems in the organizations that employed
them. Workers became mors aware about their rights, and it became increasingly
difficult to exploit them. Thus, in the 1970's & 30's typical personne function in
an organization included: (a) Personnel & Administration (b) Industrial Relations,
and (c) Labor welfare.74 The prescribed and assumed role was "crisis driven" or
"issue riven". High level of union activism, protection, and employee behaviors
like absenteeism also led to situations of over staffing, and the decision
frameworks took a legal turn, with focus to be on the right side of law.
The same period also saw a rise of managerial unionism, mainly in the public sector
enterprises where supervisors and managers without formal union rights joined to
form associations that acted as pressure groups." Managerial unions were able to
exert influence in the public sector and called for attention to managing the non-
worker staff also. Managerial union gained prominence in sectors like the public-
sector banking and insurance, and, at a point, it was accused of greatly
influencing decision-making.
Though not widespread, industry also was open to adopting tools and techniques that
could help improve efficiency and productivity. In 1961, with full co-operation
from trade unions, the Indian Aluminum Company Limited conducted a plant-wide work
study at its Alupuram, Kerala plant, which led to defining work output, staffing
patterns, and productivity-linked incentive scheme.76 The establishment of
management training institutes and business schools like ASCI Hyderabad, XLRI, and
IIMs helped the industry to imbibe modern management principles and thoughts.
TABLE 1-1: Labor Welfare Measures in Tata Steel
Welfare Measures
Eight hour Working Day
Tata Introduced By Law
Enforced Legal Measures
1912
1948
Factories Act
Free Medical Aid
1915
1948
Employee's State Insurance Act
Establishment of Welfare Department
1917
1948
Factories Act
Schooling facilities for children
1917
Formation of Works Committee for handling complaints, service conditions
and grievances
1919
1947
Industrial Dispute's Act
Leave with pay
1920
1948
Factories Act
Workers Provident Fund Scheme
1920
1952
Employee's Provident Fund Act
Workmen's Accident Compensation Scheme
1920
1924
Technical Institute for Training of Apprentices, Craftsmen & Engineering graduates
1921
1961
Workmen's Compensation Act
Apprentice's Act
Maternity Benefit
1928
1946
Bihar Maternity Benefit Act
Profit Sharing Bonus
1934
1965
Bonus Act
Retiring Gratuity
1937
1972
Payment of Gratuity Act
Ex-gratia Payment for road accident while coming to or returning from duty 1979
Social Audit
1980
First in India
Pension Scheme
1989
Social Responsibility as a Key Business Process
1988
Source: Mirza S Saiyadian, Modernisation of Mind at Tata Steel" Indian Journal of
Industrial Relations, 2001 p 375.
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