LABOUR LEGISLATION & INDUSTRIAL

RELATIONS
Ex. MBA (Human Resource Management), II Year , PAPER – 6

Director
Prof. M.V. Ramkumar Ratnam M.A., Ph.D

Centre for Distance Education

Acharya Nagarjuna University
Nagarjuna Nagar - 522 510

Ph: 0863-2293299, 2293356, 08645-211023, Cell:98482 85518

0863 - 2346259 ( Study Material )
Website : www.anucde.ac.in or www.anucde.info
e-mail : info@ anucde.ac.in
 EXECUTIVE MBA SYLLABUS (TWO YEARS)
II Year : MBA (Human Resource Management) Course code : 103

PAPER – 6 : LABOUR LEGISLATION & INDUSTRIAL RELATIONS

Unit – I: Industrial Relations – Definition and Main Aspects: Definition – Evolution of

Industrial Relations – Dominant Aspects of Industrial Relations – Nature of Industrial
Conflict – Industrial Disputes – Interests and Rights Disputes – Results of Industrial
Conflict.

Unit – II: Industrial Disputes: Strike – Causes of Strikes/Industrial Disputes – Forms of

Strike – Settlement without State Intervention – Settlement under the Influence of the
State – Adjudication or Compulsory Arbitration in India – Adjudication/Compulsory
Arbitration vs Collective Bargaining – Different Methods of Dispute Settlement in India –
Machinery for the Prevention and Settlement of Industrial Disputes in India.

Unit – III: Collective Bargaining: Meaning of Collective Bargaining – Importance of

Collective Bargaining – Factors Influencing Bargaining Units and Levels – Growth of
Collective Bargaining in India – Recommendations of the Second NCL (2002) –
Participation in Management – Schemes of Workers’ Participation in Management in
India – Work Committees (1947) – Joint Management Councils (1958).

Unit – IV: Principles of Labour Legislation: Other Institutions Controlling Human

Behaviour – Declining Influence of Religious Orders and Social Customs – Rise of
Modern Social Legislation – Social Legislation and Labour Legislation – Forces
Influencing Modern Social and Labour Legislation – Forces Influencing Social and
Labour Legislation in India – Indian Constitution and Social and Labour Legislation –
Principles of Modern Labour Legislation – Types of Labour Legislation.

Unit – V: Labour Legislation in India: Factory Legislation Definitions – Payment of

Wages Act, 1936 – Minimum Wages Act, 1948 – Equal Remuneration Act, 1976 –
Legislation Preceding Industrial Disputes Act, 1947 – Enactment of Industrial Disputes
Act, 1947 – Evolution and Growth of Social Security Legislation in India – Workmen’s
Compensation Legislation in India (Main Provisions)

Reference Books:

1. P.R.N. Sinha Indu Bala Sinha Seema Priyadarshini Shekhar - Industrial

Relations Trade Unions and Labour Legislation: PEARSON Education.
2. Mamoria – Mamoria Gankar – Dynamics of Industrial Relations : Himalaya
Publishing House – PHH
3. Arun Monappa – Industrial Relations – Tata McGraw –Hill Edition.
 (DEMBC 3)

EXECUTIVE M.B.A. DEGREE EXAMINATION, MAY 2011.

First and Second Years
Group C – Human Resource Management
Paper III — LABOUR LEGISLATION AND IR

Time : Three hours Maximum : 75 marks

SECTION A — (3  5 = 15 marks)
Answer any THREE of the following.
1. (a) Industrial dispute.
(b) Compulsory arbitration.
(c) Joint management council.
(d) Social customs.
(e) Minimum wage.
(f) Partial disablement.

SECTION B — (3  15 = 45 marks)
Answer any THREE of the following.

2. Explain the progress of collective bargaining in India.

3. Review the evolution of industrial relations in India.
4. Describe the machinery available for the settlement of industrial disputes.
5. Elucidate the functioning of works committees.
6. What are the forces that influence modern social legislation?
7. State the salient features of Equal Remuneration Act.

SECTION C — (15 marks)

8. Machinery and Tools Ltd. was established in Hyderabad in 1996. The total employee
strength is 1000 of which 2/5th are shop floor workers. The workers belong to Mysore
Division, Industrial Workers General Union (affiliated to AITUC) and are registered
under the Trade Union Act of 1926.

In 1999, the management decided to introduce CNC (computer numerically

controlled) machines to increase the speed and efficiency of production. “Higher
productivity would lead to higher profits and enable then to survive in the market
characterised by a competitive environment. This would mean even workers
benefiting in the long run” was the opinion of management.
However, the workers came to know about this stand or mgt. through an informal
channel of communication and resulting in them immediately preparing a Charter of
Demands and presenting it to management.
The main demands in the charter related to increase in wage scale and ensuring job,
guarantee for all. There were other petty demands that the mgt. conceded to. But
management could not afford to raise wage levels currently as they had already
placed orders for the CNC machines and incurred huge investments. On the other
hand, CNC machines would require a minimum number of operators and certainly
meant job cuts to the extent of 10% of workers.

When the parties met at the Bargaining Table, the management tried to explain that
it would be the workers benefiting in the long run. Hence, if the workers allowed them
to have job cuts, the mgt. would definitely raise the wage levels in the next financial
year.

The union numbers put on a hostile stand saying that wage raises would be no use to
them if they had no jobs. Mgt. made it clear that they could not cancel the orders for
CNC machines as it would mean huge losses for the company and in turn for workers
and mgt.

The union members felt neglected and exploited and decided to go on a strike where
upon the matter was referred to a III party for resolution.

Questions :

(a) Why do you think, the collective bargaining exercise failed?

(b) Are the union members justified in going on strike? If yes, what action would
you
take-assuming that you are on the mgt's side?
(c) What was the root cause of the problem? Could the conflict be avoided? If yes,
how?
–––––––––––
 (DEMBC 3)
EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2011.
First and Second Years
GROUP C — Human Resource Management
Paper III — LABOUR LEGISLATION AND IR

Time : Three hours Maximum : 75 marks

SECTION A — (3  5 = 15 marks)
Answer any THREE of the following.

1. (a) Nature of industrial conflict

(b) Adjudication
(c) Joint management councils
(d) Social security legislation
(e) Minimum wage
(f) Total disablement.

SECTION B — (3  15 = 45 marks)
Answer any THREE of the following.

2. Outline the external as well as internal environment of employee remuneration.

3. Describe the provisions of Equal Remuneration Act.
4. What are the forces that influence labour legislation in India?
5. State the factors that influence collective bargaining units.
6. Bring out the machinery available for prevention and settlement of industrial disputes.
7. What are the results of industrial conflicts?

SECTION C — (15 marks)

8. Shirley and Abdul both work for a software development company The manager of the
new product division was originally the leader of a project team for which she interviewed
and hired Abdul, Shirley, another project team member, also interviewed Abdul but
strongly opposed hiring him for the project because she thought he was not competent to
do the job.

Seven months after Abdul was hired, the manager left the project to start her own company
and recommended that Abdul and Shirley serve as joint project leaders-Shirley agreed
reluctantly with the stipulation that it be made clear she was not working for Abdul. The
—

general manager consented; Shirley and Abdul were to share the project leadership.

Within a month Shirley was angry because Abdul was representing himself to others as
the leader of the entire project and giving the impression that Shirley was working for him.
Now Shirley and Abdul are meeting with you to see if you can help them resolve the
conflict between them.
Shirley says, “Right after the joint leadership arrangement was reached with the general
manager, Abdul called a meeting of the project team without even consulting me about
the time or content. He just told me when it was being held and said I should he there. At
the meeting, Abdul reviewed everyone’s duties, line by line, including mine, treating me as
just another team member working for him. He sends out letters and signs himself as
project director, which obviously implies to others that I am working for him.’’

Abdul says “Shirley is all hung up with feelings of power and titles. Just because I sign
myself as project director doesn’t mean that she is working for me. I don't see anything to
get excited about. What difference does it make? She is too sensitive about everything. I
call a meeting and right away she thinks I’m, trying to run everything Shirley has other
things to do – other project to run so she doesn’t pay too much attention to this one. She
mostly lots things slide. But when I take the initiative to set up meeting, she starts jumping
up and down about how I am trying to make her work
for me.”

Discussion questions: A variety of strategies can be used to help resolve the conflict
between Abdul and Shirley. Put yourself in the position of mediator between Abdul and
Shirley and consider the following questions :

Questions :

(a) Abdul and Shirley seem to have several conflicts occurring simultaneously. Identify
as many of these individual conflicts as possible.
(b) Are there any general statements you can make about the overall nature of the
conflict between Abdul and Shirley?
(c) What are the possible ways to deal with the conflict between Abdul and Shirley (not
just the ones that you would recommend but all the options)?
(d) Given the choices identified in item three, what is the best way for Abdul and Shirley
to deal with the conflict between them?
(e) Given all the benefits of retrospection, what could or should have been done to
avoid this conflict in the first place?
 (DEMBC 3)
EXECUTIVE M.B.A. DEGREE EXAMINATION, DECEMBER 2010.
Group C - Human Resource Management
Paper III — LABOUR LEGISLATION AND IR

Time : Three hours Maximum : 75 marks

SECTION A — (3  5 = 15 marks)
Answer any THREE of the following.
1. (a) Concept of industrial disputes
(b) Arbitration
(c) Joint management council
(d) Social customs
(e) Minimum wage
(f) Total disablement.

SECTION B — (3  15 = 45 marks)
Answer any THREE of the following.

2. Explain the evolution of industrial relations in India.

3. State the causes and consequences of strikes.
4. Why is the progress of collective bargaining slow in India?
5. Elucidate the forces that influence labour legislation.
6. Enumerate the important provisions of payment of wages act.
7. Discuss the growth of social securites legislation in India.

SECTION C — (15 marks)

(Compulsory)
8. Case study :
Raman was a driver in a state road transport corporation. He had over 15 years of
experience as driver and regarded as the best driver, who was always punctual and never
had any remark about his work. But recently he was found to have consumed, alcohol
while on duty. The supervisor who noticed this, after Raman pleaded, with him that he
should excuse him, warned. Raman that drunken driving is an offence. After another two
months Raman was again found to be under the influence of alcohol while reporting for
duty; this time again the supervisor, excused Raman with a severe verbal warning. A few
months later the Depot Manager where Raman was working came to know about
Raman’s case when another driver was served with a show cause notice, when he was
found intoxicated while reporting for duty, he complained that he was being discriminated.

The Depot Manager served a show cause notice to the supervisor for not taking action
against Raman who has committed the mistake twice. He then ordered that Raman
should be suspended pending enquiry. Raman sought the help of the union for redressal.

(a) Discuss whether the depot manager was correct in suspending Raman and serving
a show cause notice to his supervisor.
(b) What do you think that you would have done, if you were to be in the position of the
supervisor when you found Raman intoxicated while reporting for duty?
 (DEMBC 3)
EXECUTIVE M.B.A. DEGREE EXAMINATION,JUNE 2010.
GROUP C – Human Resource Management
Paper III — LABOUR LEGISLATION AND IR
Time : Three hours Maximum : 75 marks
SECTION A — (3 5 = 15 marks)
Answer any THREE of the following.
1. (a) Industrial conflict.
(b) Forms of strike.
(c) Works committee.
(d) Social Welfare legislation.
(e) Equal remuneration for equal work.
(f) Partial disablement.

SECTION B — (3 × 15 = 45 marks)
Answer any THREE of the following.

2. How do you assess the impact of industrial conflicts?

3. Discuss the working of compulsory arbitration in India.
4. Bring out the progress of worker's participation in management in India.
5. What are the factors that influence modern labour legislation?
6. State the important provisions of minimum wages Act.
7. Explain the machinery available for settlement of disputes in India.

SECTION C — (15 marks)

(Compulsory)

9. Kalyani Electronics Corporation Ltd., recently diversified its activities and started
producing computers. It employed personnel at the lower level and middle level. It has received
several applications for the post of Commercial Manager — Computer Division. It could not
decide upon the suitability of the candidate to the position, but did find that Mr. Prakash is more
qualified for the position than other candidates. The Corporation has created a new post below
the cadre of General Manager i.e., Joint General Manager and asked Mr. Prakash to join the
Corporation as Joint General Manager. Mr. Prakash agreed to it viewing that he will be
considered for General Manager’s position based on his performance. Mr. Anand, the Deputy
General Manager of the Corporation and one of the candidates for General Manager’s position
was annoyed with the management practice. But, he wanted to show his performance record to
the management’s at the next appraisal meeting. The management of the Corporation asked
Mr. Sastry, General Manager of Televisions Division to be the General Manager incharge of
Computer Division for some time, until a new General Manager is appointed. Mr. Sastry wanted
to switch over to Computer Division in view of the prospects, prestige and recognition of the
position among the top management of the Corporation. He viewed this assignment as a
chance to prove his performance.

The Corporation has the system of appraisal of the superior’s performance by the subordinates.
The performance of the Deputy General Manager, Joint General Manager and General
Manager has to be appraised by the same group of the subordinates. Mr. Anand and Mr. Sastry
know very well about the system and its operation, whereas Mr. Prakash is a stranger to the
system as well as its modus operandi. Mr. Sastry and Mr. Anand were competing with each
other in convincing their subordinates about their performance and used all sorts of techniques
for pleasing them like promising them a wage hike, transfers to the job of their interest,
promotion etc. However these two officers functioned in collaboration with a view to pull down
Mr. Prakash. They openly told their subordinates that a stranger should not occupy the ‘chair’.
They created several groups among employees like pro-Anand’s group, pro-Sastry’s group Anti-
Prakash and Sastry group, Anti-Anand and Prakash group.

Mr. Prakash has been watching the proceedings calmly and keeping the top management in
touch with all these developments. However, Mr. Prakash has been quite work-conscious and
top management found his performance under such a political atmosphere to be satisfactory
Prakash’s pleasing manners and way of maintaining human relations with different levels of
employees did, however, prevent the emergence of an anti-Prakash wave in the company. But
in view of the political atmosphere within the company, there is no strong pro-Prakash’s group
either.

Management administered the performance appraisal technique and the subordinates

appraised the performance of all these three managers. In the end, surprisingly, the workers
assigned the following overall scores. Prakash: 560 points, Sastry: 420 points; and Anand 260
points.

Questions :

(a) How do you evaluate the worker’s appraisal in this case?

(b) Do you suggest any techniques to avert politics creeping into the process of performance
appraisal by subordinates? Or do you suggest the measure of dispensing with such appraisal
systems.