Master of Business Administration-MBA Semester 3

MU0003 – Employee Relations Management - 2 Credits

Assignment Set- 2 (30 Marks)
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Q.1 Explain the disciplinary procedure in detail.

Ans. Disciplinary Procedure

The disciplinary procedure involves the following steps:

a) Preliminary Investigation: First of all, a preliminary inquiry should be held to find

out whether a prime facie case of misconduct exists.

b) Issue of a charge-sheet: Once the prima facie case of misconduct is established,

charge sheet is issued to the employee. Charge sheet is merely a notice of the charge and
provides the employee an opportunity to explain his conduct. Therefore, charge sheet is
generally known as a show cause notice.

In the charge sheet, each charge should be clearly specified. There should be a separate
charge for each allegation and charge should not relate to any matter which has already
been decided upon. The charges so framed should be communicated to the individual
along with the statement of allegations on which the charges are based.

c) Suspension Pending Enquiry: Depending on the gravity of charges, an employee

may be suspended along with serving him the charge sheet. The various circumstances
which may warrant suspension of an individual are:

i) When disciplinary proceeding is pending or contemplated.

ii) When engaged in the activities prejudicial to the interest or security of the state.

iii) Where a case in respect of any criminal offence is under investigation, inquiry or trial.

iv) Where continuance in office will prejudice investigation/ inquiry/trial.

v) When the presence of the employee in office is likely to affect discipline.

vi) When his continuous presence in office is against the wider public interest.

vii) Where a prima face case has been established as a result of criminal or departmental
proceedings leading to the conviction, revival, dismissal, etc.

viii) In case of the following acts of misconduct:

• Moral Turpitude
• Corruption, embezzlement
• Serious negligence in duty resulting in loss
• Desertion of duty
• Refusal or failure to carry out written orders
According to the Industrial Employment (Standing Orders) Act, 1946, the suspended
worker is to be paid subsistence allowance equal to one-half of his wages for the first
ninety days of suspension and three-fourths of the wages for the remaining period of
suspensions, if the delay in the completion of disciplinary proceedings is not due to the
worker’s own conduct.

a) Notice of Enquiry: In case the worker admits the charge, in his reply to the
charge sheet, without any qualification, the employer can go ahead in awarding
punishment without further inquiry. But if the worker does not admit the charge and
the charge merits major penalty, the employer must hold an enquiry to investigate
into the charges. Proper and sufficient advance notice should be given to the
employee indicating the date, time and venue of the enquiry so that the worker may
prepare his case.

b) Conduct of Enquiry: The enquiry should be conducted by an impartial and

responsible officer. He should proceed in a proper manner and examine witnesses.
Fair opportunity should be given to the worker to cross-examine the management
witnesses.

c) Recording the Findings: On the conclusion of the enquiry, the enquiry officer
must record his findings and the reasons thereof. As far as possible, he should
refrain from recommending punishment and leave it to the decision of the
appropriate authority.

d) Awarding Punishment: The management should decide the punishment purely

on the basis of findings of the enquiry, past record of the worker and gravity of the
misconduct.

e) Communicating Punishment: The punishment awarded to the worker should be

communicated to him in written and the earliest available opportunity. The letter of
communication should contain reference
to the charge sheet, the enquiry and the findings. The date from which the
punishment is to be effective should also be mentioned.
Q.2 Discuss the process of collective bargaining, along with the illustration
for bargaining process.

Ans.

a) Problem Identification

This involves identifying and analyzing the problem to understand its gravity and
applicability. Since collective bargaining is not the forum for solving individual
problems, such an analysis is essential. It also influences selection of representatives,
their size, period of negotiations and period of agreement that is reached ultimately.
As such, it is important for both the parties to be clear about the problem before
entering into the negotiations.

b) Data Collection

Both labour and management initially spend considerable time collecting relevant
data relating to grievances, disciplinary actions, transfers and promotions, lay-offs,
overtime, former agreements covering wages, benefits, working conditions (internal
sources) and current economic forecasts, cost of living trends, wage rates in a region
across various occupations, competitive terms offered by rivals in the field, etc.

c) Selection of Negotiators

The success of collective bargaining depends on the skills and knowledge of the
negotiators. Considerable time should, therefore, be devoted to the selection of
negotiators with requisite qualifications. Effective negotiators should have a working
knowledge of trade unions principles, operations, economics, psychology, and labour
laws. They should be good judges of human nature and be able to get along with
people easily. They must know when to listen, when to speak, when to stand their
ground, when to concede, when to horse-trade, and when to make counter proposals.
Timing is important. Effective speaking and debating skills are essential.

d) Climate of Negotiations

Both parties must decide an appropriate time and set a proper climate for initial
negotiations. At this stage, the parties must determine the tone of the negotiations i.e.
hostile or of mutual trust.
e) Bargaining Strategy and Tactics

The strategy is the plan and the policies that will be pursued at the bargaining table.
Tactics are the specific action plans taken in the bargaining sessions. The following
aspects should be covered:

(i) Likely union proposals and management responses to them.

(ii) A listing of management demands, limits of concessions and anticipated union

responses.

(iii) Development of a database to support proposals advanced by management and

to counteract union demands.

(iv) A contingency operating plan if things do not move on track.

Generally, each side tries to find how far the other side is willing to go in terms of
concessions, and the minimum levels each is willing to accept. Parties should avoid
taking a rigid and inflexible stand initially. Each party should be willing to concede
up to a certain extent depending on one’s own compulsions and pressures, with a
view to win over the other party. This is popularly known as “bargaining zone” which
is the area bounded by the limits within which the union and employees are willing to
concede. If neither party is willing to concede a little bit, negotiations reach a
deadlock or impasse. Impasse is a collective bargaining situation when the parties are
not able to overcome their differences, usually because one party is demanding more
than the other will offer. One way to avoid impasse is postponement of difficult
issues to a later stage and take up easier ones first with a view to have a smoother
passage initially. Another way to avoid breakdowns is for each side to be prepared to
offer propositions and to accept alternative solutions to some of the more
controversial issues.

f) Formalizing the Agreement

When a solution comes through a formal document must be prepared expressing

everything in a simple, clear and concise form. After this, both parties must sign the
agreement and abide by its terms and conditions during the entire term of the
contract.

g) Enforcing the Agreement

Collective bargaining does not come to an end with the signing of the agreement. For
the agreement to be meaningful and effective, both parties must adhere to the
conditions agreed upon and implement every thing scrupulously.
Q.3 TechPro is a company dealing with the manufacturing of UPS. It has
more than 25 employees. The company was established 4 years ago. The
company owner wants to keep in place all the legal implications. Will the
organization be covered in the Factories Act? What all provisions need to
be taken care of to abide by the regulations?

Ans. Important Statutory Provisions in the Factories Act, 1948

1. Cleanliness

(a) Every factory shall be kept clean and free from effluvia arising
from any drain, privy or other nuisance.

(b) Accumulation of dirt and refuse shall be removed daily by some effective method,

(c) The floor of every work room shall be cleaned at least once in every week by
washing, using disinfectant where necessary, or by some effective method,

(d) Where a floor is likely to become wet in course of any manufacturing process to such
an extent as is capable of being drained, effective means of drainage shall be provided,

(e) Walls, partitions, ceilings, doors, windows. etc. shall be painted, varnished, white
colour washed in the prescribed manner.

2. Disposal of Wastes and Effluents

a) Effective arrangements shall be made in every factory for the treatment of wastes
and effluents due to manufacturing process carried on therein, so as to render them
innocuous and for their disposal.

3. Ventilation and Temperature

(a) Effective and suitable provision shall be made in every factory for securing and
maintaining in every workroom the circulation of fresh air and such a temperature as will
secure to workers therein reasonable conditions of comfort and prevent injury to health,

(b) The walls and roofs shall not be exceeded but kept as low as practicable,

(c) The process which produces high temperatures shall be separated from the workroom
by insulating the hot parts or by other effective means.

4. Dust and Fumes

(a) Where dust or fumes or impurity of such a nature as is likely to be injurious or

offensive to the workers is given off as a result of the manufacturing process being
carried on in a factory, effective measures shall be taken in the factory for prevention of
inhalation or accumulation of dust and fumes in workrooms. If for such a purpose any
exhaust appliance is necessary it shall be applied as near as possible to the point of origin
of the dust, fumes or other impurity and such point shall be enclosed so far as possible,

(b) A stationary internal combustion engine shall not be operated unless the exhaust is
conducted into the open air. Other internal combustion engines shall not be operated in
any room unless effective measures have been taken to prevent accumulation of fumes
there from which are injurious.

5. Artificial Humidification

In any factory in which the humidity of the air is artificially increased, the water used for
the purpose shall be taken from a public supply or other source of drinking water or shall
be effectively purified before it is so used.

6. Over-crowding

There shall be in every work-room of a factory at least 9.9 cubic metres (for the factories
existing before this Act) and 14.2 cubic metres for factories built after this Act) and 14.2
cubic metres (for factories built after this Act) of space for every worker. In calculating
such space, no account shall be taken of any space which is more than 4.2 metres above
the level of the room’s floor.

7. Lighting

a) In every part of the factory where workers are working or

passing there shall be provided and maintained sufficient and suitable lighting, natural or
artificial or both,

b) All glazed windows and sky lights used for lighting shall be kept clean and free from
obstruction,

c) Effective provision shall be made to prevent glaze and the formation of shadows.

8. Drinking Water

(a) In every factory, effective arrangements shall be made to provide and maintain at
suitable points conveniently situated for all workers employed therein a sufficient supply
of wholesome drinking water,

(b) All such points shall be legibly marked ‘drinking water’ in a language understood
by a majority of the workers employed in the factory. No such points shall be situated
within six metres of any washing place, urinal, latrine, spittoon, open drain carrying
effluent or any other sources of contamination unless a shorter distance is approved in
writing by the Chief Inspector,

(c) In every factory wherein more than 250 workers are ordinarily employed, provision
shall be made for cooling drinking water during hot weather by effective means and for
distribution thereof.

9. Latrines and Urinals

(a) In every factory:

(i) Sufficient latrine and urinal accommodation of prescribed types shall be provided
conveniently situated and accessible to workers at the time while they are at the factory;

(ii) Separate enclosed accommodation shall be provided for male and female workers;

(iii) Such accommodation shall be adequately lighted and ventilated and no latrine or
urinal shall unless specially exempted in writing by the Chief Inspector, communicate
with any work-room except through an intervening open space or ventilated passage;

(iv) All such accommodations shall be maintained in a clean and sanitary condition at all
times;

(v) Sweepers shall be employed whose primary duty would be to keep clean latrines,
urinals and washing places.

(b) In every factory wherein more than two hundred and fifty workers are ordinarily
employed:

(i) All latrine and urinal accommodation shall be of prescribed sanitary types;

(ii) The floors and internal walks, up to a height of 90 centimeters, of the latrines and
urinals and the sanitary block shall be laid in glazed tiles or otherwise finished to provide
a smooth polished impervious surface;

(iii) The floors, portions of the walls or blocks so laid or finished and the sanitary pans of
latrines and urinals shall be thoroughly washed and cleaned at least once in every seven
days with suitable detergents or disinfectants or with both.

10. Spittoons

(a) In every factory, there shall be provided a sufficient number spittoons at convenient
places and they shall be maintained in a clean and hygienic condition.

(b )No person shall spit within the premises of a factory except in the spittoons provided
for the purpose. A notice containing the provision of spittoons in the factory and the
penalty for spitting any where except in the spittoons shall be prominently displayed at
suitable places in the premises.