INDUSTRIAL MANAGEMENT

NOTES-

UNIT - 1

Industrial relationship is about the relationship between an employee and management.

This page carries information about Industrial relations and its concept through definition
and description of industrial relation.”

Industrial relations has become one of the most delicate and complex problems of modern
industrial society. Industrial progress is impossible without cooperation of labours and
harmonious relationships. Therefore, it is in the interest of all to create and maintain good
relations between employees (labour) and employers (management).

Definition of Industrial Relations

Industrial relation is defined as relation of Individual or group of employee and employer
for engaging themselves in a way to maximize the productive activities.
In the words of Lester, ―Industrial relations involve attempts at arriving at solutions
between the conflicting objectives and values; between the profit motive and social gain;
between discipline and freedom, between authority and industrial democracy; between
bargaining and co-operation; and between conflicting interests of the individual, the
group and the community.

Concept of Industrial Relations

The term ‗Industrial Relations‘ comprises of two terms: ‗Industry‘ and ‗Relations‘.
―Industry‖ refers to ―any productive activity in which an individual (or a group of
individuals) is (are) engaged‖. By ―relations‖ we mean ―the relationships that exist within
the industry between the employer and his workmen.‖ The term industrial relations
explains the relationship between employees and management which stems directly or
indirectly from union-employer relationship.
Industrial relations are the relationships between employees and employers within the
organizational settings. The field of industrial relations looks at the relationship between
management and workers, particularly groups of workers represented by a union.
Industrial relations are basically the interactions between employers, employees and the
government, and the institutions and associations through which such interactions are
mediated.
The term industrial relations has a broad as well as narrow outlook. Originally, industrial
relations was broadly defined to include the relationships and interactions between
employers and employees. From this perspective, industrial relations covers all aspects of
the employment relationship, including human resource management, employee relations,
and union-management (or labor) relations. Now its meaning has become more specific
and restricted. Accordingly, industrial relations pertains to the study and practice of
collective bargaining, trade unionism, and labor-management relations, while human
resource management is a separate, largely distinct field that deals with nonunion
employment relationships and the personnel practices and policies of employers.
The relationships which arise at and out of the workplace generally include the
relationships between individual workers, the relationships between workers and their
employer and the relationships between employees. The relationships employers and
workers have with the organizations are formed to promote their respective interests, and
the relations between those organizations, at all levels. Industrial relations also includes
the processes through which these relationships are expressed (such as, collective
bargaining, workers‘ participation in decision-making, and grievance and dispute
settlement), and the management of conflict between employers, workers and trade
unions, when it arises.

There are two important aspects of the industrial relations scene in a modern industrial
society:

1. Cooperation
2. conflict.

Cooperation:
Modern industrial production is based upon cooperation between labour and capital. Here
labour stands for the workers who man the factories, mines and other industrial
establishment or services. Capital stands for the owners of business enterprises who
supply the capital and own the final product. The cooperation between the two is one of
the basic requirements for the smooth functioning of modern industries and the growth of
industrialization.
Conflict:
The second aspect of the system of industrial relations obtaining today is the existence of
conflict, conflict, like cooperation is inherent in the industrial relations set up of today.
The prevailing industrial unrest, the frequency of work –stoppages resulting either from
strikes or lock-outs, and the slowing down of production, are the occasional expressional
of the ever present and latent conflict between workers and the management.
Contemporary trends in industrial relations Percentage distribution of the causes of
industrial dispute resulting in work-stoppages

Concept of industrial disputes:

In common parlance, dispute means difference or disagreement of strife over some issues
between the parties. As regards industrial dispute, since its settlement proceeds as per the
legal provisions contained in the ‗Industrial Disputes‘ Act, 1947, hence it seems pertinent
to study the concept of industrial disputes from a legalistic angle.

According to Section 2 (k) of the Industrial Disputes Act, 1947, the term ‗industrial
dispute‘ means ―any dispute or difference between employers and employers or between
employers and workmen, or between workmen and workmen, which is connected with
the employment or non- employment or the terms of employment and conditions of
employment of any person‖.

The above definition is too broad and includes differences even between groups of
workmen and employers engaged in an industry. However, in practice, industrial disputes
mainly relate to the difference between the workmen and the employers.

Dispute differs from discipline and grievance. While discipline and grievance focus on
individuals, dispute focuses on collectivity of individuals. In other words, the test of
industrial dispute is that the interest of all or majority of workmen is involved in it.

The following principles judge the nature of an industrial dispute:

1. The dispute must affect a large number of workmen who have a community of interest
and the rights of these workmen must be affected as a class.

2. The dispute must be taken up either by the industry union or by a substantial number of
workmen.

3. The grievance turns from individual complaint into a general complaint.

4. There must be some nexus between the union and the dispute.

5. According to Section 2A of the Industrial Disputes Act, 1947, a workman has a right to
raise an industrial dispute with regard to termination, discharge, dismissal, or
retrenchment of his or her service, even though no other workman or any trade union of
workman or any trade union of workmen raises it or is a party to the dispute.

Forms of Industrial Disputes:

The industrial disputes are manifested in the following forms:

Strikes: Strike is the most important form of industrial disputes. A strike is a spontaneous
and concerted withdrawal of labour from production. The Industrial Disputes Act, 1947
defines a strike as ―suspension or cessation of work by a group of persons employed in
any industry, acting in combination or a concerted refusal or a refusal under a common
understanding of any number of persons who are or have been so employed to continue to
work or accept employment‖.

(i) Primary Strikes:

These strikes are generally aimed against the employers with whom the dispute exists.
They may include the form of a stay-away strike, stay-in, sit-down, pen-down or tools-
down, go-slow and work-to-rule, token or protest strike, cat-call strike, picketing or
boycott.

(ii) Secondary Strikes:

These strikes are also called the ‗sympathy strikes‘. In this form of strike, the pressure is
applied not against the employer with whom the workmen have a dispute, but against the
third person who has good trade relations with the employer.
General and political strikes and bandhs come under the category of other strikes:

Lock-Outs:
Lock-out is the counter-part of strikes. While a ‗strike‘ is an organised or concerted
withdrawal of the supply of labour, ‗lock-out‘ is withholding demand for it. Lock-out is
the weapon available to the employer to shut-down the place of work till the workers
agree to resume work on the conditions laid down by the employer. The Industrial
Disputes Act, 1947 defined lock-out as ―the temporary shutting down or closing of a
place of business by the employer‖.

Lock-out is common in educational institutions also like a University. If the University

authority finds it impossible to resolve the dispute raised by the students, it decides to
close-down (or say, lockout) the University till the students agree to resume to their
studies on the conditions laid down by the University authority. Recall, your own
University might also have declared closure sometimes for indefinite period on the eve of
some unrest / dispute erupted in the campus.

Gherao:
Gherao means to surround. It is a physical blockade of managers by encirclement aimed
at preventing the egress and ingress from and to a particular office or place. This can
happen outside the organisational premises too. The managers / persons who are gheraoed
are not allowed to move for a long time.

Sometimes, the blockade or confinements are cruel and inhuman like confinement in a
small place without light or fans and for long periods without food and water. The
persons confined are humiliated with abuses and are not allowed even to answer ―calls of
nature‖.

The object of gherao is to compel the gheraoed persons to accept the workers‘ demands
without recourse to the machinery provided by law. The National Commission on Labour
has refused to accept ‗gherao‘ as a form of industrial protest on the ground that it tends to
inflict physical duress (as against economic press) on the persons gheraoed and endangers
not only industrial harmony but also creates problems of law and order.

Workmen found guilty of wrongfully restraining any person or wrongfully confining him
during a gherao are guilty under Section 339 or 340 of the Indian Panel Code of having
committed a cognizable offence for which they would be liable to be arrested without
warrant and punishable with simple imprisonment for a term which may be extended to
one month or with a fine up to Rs. 500, or with both.

Gherao is a common feature even in educational institutions. You might have seen in
your own University officers sometimes gheraoed by the employees / students to compel
the officers to submit to their demands. Here is one such real case of gherao.

STRIKES AND DIFFERENT TYPES OF STRIKES

A strike is a very powerful weapon used by trade unions and other labour associations to
get their demands accepted. It generally involves quitting of work by a group of workers
 for the purpose of bringing the pressure on their employer so that their demands get
accepted. When workers collectively cease to work in a particular industry, they are said
to be on strike.
According to Industrial Disputes Act 1947, a strike is ―a cessation of work by a body of
persons employed in an industry acting in combination; or a concerted refusal of any
number of persons who are or have been employed to continue to work or to accept
employment; or a refusal under a common understanding of any number of such persons
to continue to work or to accept employment‖. This definition throws light on a few
aspects of a strike. Firstly, a strike is a referred to as stoppage of work by a group of
workers employed in a particular industry. Secondly, it also includes the refusal of a
number of employees to continue work under their employer.
In a strike, a group of workers agree to stop working to protest against something they
think is unfair where they work. Labors withhold their services in order to pressurize their
employment or government to meet their demands. Demands made by strikers can range
from asking for higher wages or better benefits to seeking changes in the workplace
environment. Strikes sometimes occur so that employers listen more carefully to the
workers and address their problems.

Causes of strikes: Strikes can occur because of the following reasons:

 Dissatisfaction with company policy
 Salary and incentive problems
 Increment not up to the mark
 Wrongful discharge or dismissal of workmen


 Withdrawal of any concession or privilege

 Hours of work and rest intervals
 Leaves with wages and holidays
 Bonus, profit sharing, Provident fund and gratuity
 Retrenchment of workmen and closure of establishment
 Dispute connected with minimum wages
TYPES OF STRIKE

1 Economic Strike: Under this type of strike, labors stop their work to enforce their
economic demands such as wages and bonus. In these kinds of strikes, workers ask for
increase in wages, allowances like traveling allowance, house rent allowance, dearness
allowance, bonus and other facilities such as increase in privilege leave and casual leave.

2 Sympathetic Strike:When workers of one unit or industry go on strike in sympathy

with workers of another unit or industry who are already on strike, it is called a
sympathetic strike. The members of other unions involve themselves in a strike to support
or express their sympathy with the members of unions who are on strike in other
undertakings. The workers of sugar industry may go on strike in sympathy with their
fellow workers of the textile industry who may already be on strike.

It means a strike by members of all or most of the unions in a region or an industry. It

may be a strike of all the workers in a particular region of industry to force demands
common to all the workers. These strikes are usually intended to create political pressure
on the ruling government, rather than on any one employer. It may also be an extension of
the sympathetic strike to express generalized protest by the workers.

3 Sit down Strike: In this case, workers do not absent themselves from their place of
work when they are on strike. They keep control over production facilities. But do not
work. Such a strike is also known as ‗pen down‘ or ‗tool down‘ strike. Workers show up
to their place of employment, but they refuse to work. They also refuse to leave, which
makes it very difficult for employer to defy the union and take the workers‘ places. In
June 1998, all the Municipal Corporation employees in Punjab observed a pen down
strike to protest against the non-acceptance of their demands by the state government.

4 Slow Down Strike: Employees remain on their jobs under this type of strike. They do
not stop work, but restrict the rate of output in an organized manner. They adopt go-slow
tactics to put pressure on the employers.

5 Sick-out (or sick-in): In this strike, all or a significant number of union members call
in sick on the same day. They don‘t break any rules, because they just use their sick leave
that was allotted to them on the same day. However, the sudden loss of so many
employees all on one day can show the employer just what it would be like if they really
went on strike.

6 Wild cat strikes: These strikes are conducted by workers or employees without the
authority and consent of unions. In 2004, a significant number of advocates went on
wildcat strike at the City Civil Court premises in Bangalore. They were protesting against
some remarks allegedly made against them by an Assistant Commissioner.

Labour Management Cooperation

The Labour Management Cooperation is an intensive program designed to facilitate the
union-management partnership. Union-management partnerships can be an important and
effective vehicle for designing and implementing improvements in the workplace and for
building relationships with the union. This workshop will help you to assess the potential
benefits of labour-management collaboration to your own organization. This course will
provide you with a set of practical tools and processes that you can apply in your work
environment, primarily focusing on interest based bargaining. Interest-based bargaining
frames negotiation as joint problem to resolve each party‘s underlining issues, needs, and
concerns. The process works by encouraging the parties to focus on interests, not
positions, and to use communication and innovative thinking to identify superior
solutions and build relationships. Students will have multiple opportunities to practice
skills through interactive exercises, case studies and simulations.

Workers Participation in Management : Definition, Characteristics and Objectives!

Definition:
Like other behavioural terms, WPM means different things to different people depending
upon their objectives and expectations. Thus, WPM is an elastic concept. For example,
for management it is a joint consultation prior to decision making, for workers it means
co-determination, for trade unions It is the harbinger of a new order of social relationship
and a new set of power equation within organisations, while for government it is an
association of labour with management without the final authority or responsibility in
decision making.

According to the 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‘ members on management or
supervisory boards or even management by workers themselves as practised in
Yugoslavia‖.

In Yugoslavia, WPM is governed by the Law on Workers‘ Management of State

Economic Enterprises and Higher Economic Association. The Act consists of a three-tier
participation structure: collective bargaining, workers‘ council, and hoard of
management.

In fact, the basic reason for differences in perception of WPM is mainly due to the
differential pattern of practices adopted by various countries while implementing
workers‘ participation in management.

For example, in Great Britain and Sweden, WPM is in the form of Joint Consultation
through Joint Consultative Committees, Works Committees in France, Co-determination
Committees in West Germany, Joint Work Council in Belgium, Workers‘ Council and
Management Board in Yugoslavia and Union Management Co-operation in USA.

In India, WPM is in the form of, what we call Labour Management Cooperation and
Workers‘ Participation in Management. It is implemented through the agencies like
Works Committees, Joint Management Councils (JMCs) Shop Councils, Unit Councils
and Joint Councils. Notwithstanding, these different forms of WPM differ only in degree,
not in nature.

Be the perceptual differences as these may, WPM is a system of communication and

consultation, either formal or informal, by which the workers of an organisation are kept
informed, as and when required, about the affairs of the undertaking and through which
they express their opinion and contribute to decision-making process of management.

Characteristics:
The following are the main characteristics of WPM:
1. Participation implies practices which increase the scope for employees‘ share of
influence in decision-making process with the assumption of responsibility.
2. Participation presupposes willing acceptance of responsibility by workers.

3. Workers participate in management not as individuals but as a group through their

representatives.

4. Worker‘s participation in management differs from collective bargaining in the sense

that while the former is based on mutual trust, information sharing and mutual problem
solving; the latter is essentially based on power play, pressure tactics, and negotiations.

5. The basic rationale tor worker‘s participation in management is that workers invest
their Iabour and their fates to their place of work. Thus, they contribute to the outcomes
of organization. Hence, they have a legitimate right to share in decision-making activities
of organisation.

Objectives:
The objectives of WPM are closely netted to the ration-able for WPM. Accordingly, the
objectives of WPM vary from country to country depending on their levels of socio-
economic development political philosophies, industrial relations scenes, and attitude of
the working class.

To quote, the objective of WPM is to co-determine at the various levels of enterprises in

Germany, assign the final to workers over all matters relating to an undertaking in
Yugoslavia, promote good communication and understanding between labour and
management on the issues of business administration and production in Japan, and enable
work-force to influence the working of industries in China, for example.

In India the objective of the government in advocating for workers‘ participation in

management, as stated in the Industrial Policy Resolution 1956, is a part of its overall
endeavour to create a socialist society, wherein the sharing of a part of the managerial
powers by workers is considered necessary.

The objective of WPM, as envisaged in the Second Five Year Plan of India is to
ensure:
1. Increase in productivity for the benefit of all concerned to an enterprise, i.e., the
employer, the employees and the community at large.

2. Satisfaction of worker‘s urge for self-expression in the matters of enterprise

management.

3 Making employees better understood of their roles in the organisation.

In ultimate sense, the objective of WPM in India is to achieve organizational

effectiveness and the satisfaction of the employees.

Accordingly, the objectives of WPM in India are to:

1. Promote mutual understanding between management and workers, i.e., industrial
harmony.
2. Establish and encourage good communication system at all levels.

3. Create and promote a sense of belongingness among workers.

4. Help handle resistance to change.

5. Induce a sense among workers to contribute their best for the cause of organisation.

6. Create a sense of commitment to decisions to which they were a party.

Levels of Participation:
Having known the objectives of WPM, the question then is to what extent workers can
participate in decision-making process. In other words, it is important to know the
extents/levels of co-determination in an organisation.

Viewed from this angle, Mehtras has suggested five levels of workers‘ participation
ranging from the minimum to the maximum. Since these levels of workers‘ influence the
process and quality of decision making in an organisation. We are therefore highlighting
here these levels briefly ranking them from the minimum to the maximum level of
participation.

Informative Participation:
This refers to management‘s information sharing with workers on such items those are
concerned with workers. Balance Sheet, production, economic conditions of the plant
etc., are the examples of such items. It is important to note that here workers have no right
of close scrutiny of the information provided and management has its prerogative to make
decisions on issues concerned with workers.

Consultative Participation:
In this type of participation, workers are consulted in those matters which relate to them.
Here, the role of workers is restricted to give their views only. However the acceptance
and non-acceptance of these views depends on management. Nonetheless, it provides an
opportunity to the workers to express their views on matters involving their interest.

Associative Participation:
Here, the role of the workers‘ council is not just advisory unlike consultative
participation. In a way, this is an advanced and improved form of consultative participa-
tion. Now, the management is under a moral obligation to acknowledge, accept and
implement the unanimous decision of the council.

Administrative Participation:
In the administrative participation, decisions already taken are implemented by the
workers. Compared to the former three levels of participation, the degree of sharing
authority and responsibility by the workers is definitely more in this participation.

Decisive Participation:
Here, the decisions are taken jointly by the management and the workers of an
organisation. In fact, this is the ultimate level of workers‘ participation in management.
LABOUR LEGISLATION

The term "labour legislation" or "labour laws" is used to denote that body of laws which
deal with employment and non-employment wages, working conditions, industrial
relations, social security and labour welfare of industrially employed persons. Any
enlightened state would intervene in the conduct of industry and impose statutory
obligations mostly on the employers and also, to a lesser degree, on the workers in order
to maintain industrial peace and good relations between management and workers and to
secure to the better working conditions a minimum wage, compensation in case of
accidents medical facilities provision for future etc

.
The origin and growth of labour legislation may be ascribed mostly to the development of
organised industry where a large number of workers including women and children are
employed under conditions which tend to be detrimental to their health, safety and
welfare and against which they arc often unable to protect themselves.

Need for Labour Legislation

It proceeds from two basic concepts:

(1) The relationship between workers and employers is one of partnership in the
maintenance of production and the building up of the national economy.

(2) The community as a whole as well as individual employer are under an obligation to
protect the well-being of workers and to secure to them their due share in the gains of
economic development

.
The object of Labour Legislation, therefore, is twofold

:
(1) to improve the service conditions of industrial labour so as to provide for them the
ordinary amenities of life, and by that process,

(2) to bring about industrial peace which could in its turn accelerate productive activity of
the country resulting in its prosperity.

The prosperity of the country, in its turn, helps to improve the conditions of labour. The
social and economic uplilftment of the labour is important for securing industrial peace
which is essential to increase the national productivity
.
Labour has a vital role in increasing productivity, and management has to help create
conditions in which workers can make their maximum contribution towards this
objective. In free India, the labour movement and the trade unions should be in a position
to assume larger responsibilities. One of the main tasks in the Five Year Plans is to evolve
practical ways in which they can make an increasing contribution to national development
and national policy. The growth of the public sector provides opportunities for working
out new concepts of labour relations and the association of labour in management of
industry.

To sum up, Labour Legislation is necessary for the following reasons:

1. The individual workers are economically weak. They cannot bargain with the
employers for the protection of their rights and even for subsistence wages. As such
legislation for protection of labour against long hours of work, unhygienic conditions of
work, low wages and exploitation is needed.

2. The workers are exposed to certain risks in factories, mines and other establishments.
As such in order to make provision for their health, safety and welfare, legislation is
needed

.3. In order to increase the bargaining power of labour, legislation is necessary to

encourage the formation of trade unions

.4. In order to avoid industrial disputes which lead to strikes and lock-outs, labour
legislation is needed.

5. To protect children and women from taking to work under hazardous conditions and at
odd hours, laws are necessary

.6. Laws for providing compensation to workmen who die or are injured during and in the
course of employment are also needed. ,

7. Labour Legislation advances the interests of the working people and thus helps set up
the development of the national economy on a sound and self-reliant basis

.
PRINCIPLES OF LABOUR LEGISLATION

Labour Legislation is based on certain fundamental principles

1. Social Justice-In an industrial set-up, social justice means an equitable distribution of

profits and benefits accruing from industry between industrialists and workers and
affording protection to the workers against harmful effect to their health, safety and
morality. Mere compliance with and enforcement of legal rights may be unfair and cause
hardship to the workers as workers-employer contracts are generally one-sided and
directed by the employers. The Workmen's Compensation Act, 1923 and the Minimum
Wages Act, 1948, for example, are attempts at securing social justice to the workers. The
provisions of the Factories Act, 1948, fixing hours of work, overtime, leave privileges,
welfare facilities and safe working conditions are also directed towards the same end.

Social justice is the signature tune of the Constitution of India and this note is nowhere
more vibrant than in industrial jurisprudence

.
The Preamble to our Constitution also lays down the objective of establishing 'Justice—
Social, Economic and Political

'
2. Social equity—Another principle on which Labour Legislation is based is social equity.
Legislation based on social justice fixes a definite standard for adoption for the future,
taking into consideration the events and circumstances of the past and the present. But
with the change of circumstances arid ideas there maybe a need for change in the law.
This power of changing the law is taken by the Government by making provisions for
True-making powers in the Acts in regard to certain specified matters. The rules may be
modified or amended by the Government to suit the changed situation. Such legislation is
based on the principle of social equity.

3. International uniformity—International uniformity is another principle on which

labour laws are based. The important role played by the International Labour
Organisation (in short, I.L.O.) in this connection is praiseworthy. I.L.O. is an international
agency which was founded in 1919 soon after the First World War.

The main aims of the I.L.O.

(i) to remove injustice, hardship and deprivation of large masses of toiling people all over
the world; and

(ii) to improve their living and working conditions and thus establish universal and lasting
peace based upon social justice

.
I.L.O. is a tripartite organisation consisting of representative of Government, employers
and workers of the member countries. There is parity of representation as between
Government and non-Government welding together employers and workers in different
countries into independent organisations. By its tripartite character of association of
representatives of Government, employers and workers, it has produced a large number of
international Conventions and Recommendations covering unemployment, general
conditions of employment, wages, hours of work, weekly rest periods, holidays,
employment, of children, young persons and women, industrial health, safety, social
security, industrial relations and many other allied subjects
.
The basic principles of th6 Labour Policy of I.L.O. are as follows:

(a) Labour is not a commodity.

(b) Freedom of expression and of association are essential to continued progress.

(c)Poverty anywhere constitutes a danger to prosperity everywhere.

(d) War against want requires to be carried on with unending vigour within each nation
and by continuous efforts in which the representatives of workers and employers enjoying
equal status with those of Government join with them in free discussions and democratic
decisions with a view to the promotion of common welfare.

I.L.O. aims at securing minimum standards on a uniform basis in respect of all labour
matters. Conventions passed by I.L.O. conferences. If and when ratified by a member-
State, have to be implemented through appropriate legislation. Most of the Labour
Legislation in India is based on this principle

.
4. National economy—In enacting labour legislation, the general economic situation of
the country has to be born in mind lest the very objective of the legislation be defeated.
The state of national economy is an important factor in influencing labour legislation in
the country.
UNIT 2
Trade unions are associations of workers and are formed with the intention of
protecting the workers against exploitation of the employers and also to improve the
workers’ conditions. The industrial revolution in England and in other countries
and the advent of the factory system of production are greatly responsible for the
emergence of trade unions.
The modern industrial establishments employ the workers in conditions which make them
helpless in bargaining individually. The workers are unorganised and are subject to
exploitation by the employer. This exploitation of the employers is resented by the
working class. Hence they form unions to protect themselves against the exploitations of
the employers.

Thus, the trade union movement arose for the purpose of defending their rights, for
improving their living and working conditions and for protecting their interests. From a
small beginning, this movement has now grown into worldwide movement for achieving
social justice, economic equality and preservation of democratic values of life.

Meaning and Definition:

Trade union is a voluntary organisation of workers formed to protect and promote their
interests through collective action. It may be formed on plant basis, industry basis, firm
basis, regional basis or national basis. Different writers and thinkers have defined the
trade union differently.

Objectives:
Following are the objectives of trade unions:
1.Ensure Security of Workers:
This involves continued employment of workers, prevent retrenchment, lay off or lock-
outs. Restrict application of ―fire‖ or dismissal or discharge and VRS.

2.Obtain Better Economic Returns:

This involves wages hike at periodic intervals, bonus at higher rate, other admissible
allowances, subsidized canteen and transport facilities.

3.Secure Power To Influence Management:

This involves workers‘ participation in management, decision making, role of union in
policy decisions affecting workers, and staff members.

4. Secure Power To Influence Government:

This involves influence on government to pass labour legislation which improves
working conditions, safety, welfare, security and retirement benefits of workers and their
dependents, seek redressal of grievances as and when needed.

Functions of a Trade Union:

The important basic functions of unions listed by National Commission on labour are:

(i) To secure fair wages to workers.

(ii) To safeguard security of tenure and improve conditions of service.

(iii) To enlarge opportunities for promotion and training.

(iv) To improve working and living conditions.

(v) To provide for educational, cultural and recreational facilities.

(vi) To co-operate in and facilitate technological advance by broadening the

understanding of workers on its underlying issues.

(vii) To promote identity of interests of workers with their industry.

(viii) To offer responsive co-operation in improving levels of production and

productivity, discipline and high standards of quality and

(ix) To promote individual and collective welfare.

Trade Union as an Organisation:

Most of the workers are members of any one of the trade unions.

There are many reasons of membership and some of which are given below:
(a) Security of employment and protection against calamity of accident, death and secure
social security cover after retirement.

(b) Meeting companionship and affiliation need and improve one‘s influence with
management.
(c) To get a common platform—to air one‘s views, aims ideas and feelings and obtain
recognition and status among fellow workers.

(d) Make use of the ―principle of unity‖ for the purpose of securing good working
conditions, high economic compensations, better career prospects and welfare needs.

(e) Restrict management actions which are against the interest of workers.

Formation and Registration of Trade Union:

The following steps are involved in the registration of trade union:

Appointment of Registrars:
(a) The appropriate government shall appoint a person to be the registrar of trade unions
for each state. The appropriate government may appoint as many additional and deputy
registrars of trade unions as it thinks fit for the purpose of exercising and discharging
under the superintendence and direction of the registrar.
Such powers and functions of the registrar under this Act as it may, by order, specify and
define the local limits within which any such additional or deputy registrar shall exercise
and discharge the powers and functions so specified.

(b) (i) Mode of Registration:

Any seven or more members of a trade union may, by subscribing their names to the rules
of the trade union and by otherwise complying with the provision of this Act with respect
to registration, apply for registration of the trade union under this Act.

(ii)Where an application has been made under subsection (i) for the registration of a trade
union, such application shall not be deemed to have become invalid merely by reason of
the fact that, at any time after the date of the application, but before the registration of the
trade union, some of the applicants, but not exceeding half of the total number of persons
who made the application, have ceased to be members of the trade union or have given
notice in writing to the registrar dissociating themselves from the application.

(c) Application for Registration:

(i) Every application for registration of a trade union shall be made to the registrar and
shall be accompanied by a copy of the rules of the trade union and a statement of the
following particulars, namely—

1. The names, occupations and addresses of the members making application.

2. The name of the trade union and the address of its head office.

3. The titles, names, age, addresses and occupations of the office bearers of the trade
union.

(ii) Where a trade union has been in existence for more than one year before the making
of an application for its registration, these shall be delivered to the registrar, together with
the application, a general statement of the assets and liabilities of the trade union prepared
in such form and containing such particulars as may be prescribed.

(d)Provisions to Be Contained In the Rules of a Trade Union:

A trade union shall not be entitled to registration under this Act, unless the executive
thereof is constituted in accordance with the provisions of this Act.

(e)Power to Call For Further Particulars and To Require Alterations of Names:

(i) The registrar may call for further information or the purpose of satisfying himself that
any application complies with the provisions of Section 5, or that the trade union is
entitled to registration under Section 6, and may refuse to register the trade union until
such information is supplied.

(ii) If the name under which a trade union is proposed to be registered is identical with
that by which any other existing trade union has been registered or, in the opinion of the
registrar, so nearly resembles such name as to be likely to deceive the public or the
members of either trade union, the registrar shall require the persons applying for
registration to alter the name of the trade union stated in the application, and shall refuse
to register the union until such alteration has been made.

(f)Registration:
The registrar, on being satisfied that the trade union has complied with all the
requirements of the Act in regard to registration shall register the trade union by entering
in a register, to be maintained in such form as may be prescribed, the particulars relating
to the trade union contained in the statement accompanying the application for
registration.

(g)Certificate of Registration:
The registrar, on registering a trade union under section and, shall issue a certificate of
registration in the prescribed form which shall be conclusive evidence that the trade union
has been duly registered under this Act.

(h)Cancellation of Registration:
A certificate of registration of a trade union may be withdrawn or cancelled by the
registrar on the application of the trade union to be verified in such manner as may be
prescribed in if the registrar is satisfied that the certificate has been obtained by fraud or
mistake or that the trade union has ceased to exist.

It has to provide not less than two months‘ previous notice in writing specifying the
ground on which it is proposed to withdraw or cancel the certificate shall be given by the
registrar to the trade union before the certificate is withdrawn or cancelled otherwise than
on the application of the trade union.

(i) Registered Office:

All communications and notices to a registered trade union may be addressed to its
registered office. Notice of any change in the address of the head office shall be given
within fourteen days of such change to the registrar in writing, and the changed address
shall be recorded in the register referred to in Section-8 of the Companies Act.

(j) Incorporation of Registered Trade Union:

Every registered trade union shall be a body corporate by the name under which it is
registered and shall have perpetual succession and a common seal with power to acquire
and hold both movable and immovable property and to contract, and shall by the said
name sue and be sued.

Rights and Liabilities of Registered Trade Unions:

1. Objects on Which General Funds May Be Spent:
The general funds of a registered trade union shall not be spent on any other objects than
the payment of salaries, allowances and expenses to the office bearers of the trade unions;
expenses for the administration of the trade union; the presentation or defiance of any
legal proceeding to which the trade union of any member thereof is a party; the conduct
of trade disputes and compensation of members for loss arising out of trade disputes;
provision of education, social or religious benefits for members; upkeep of a periodical
published.

2. Constitution of a Separate Fund for Political Purposes:

A registered trade union may constitute a separate fund, from contributions separately
levied for or made to that fund, from which payments may be made for the promotion of
the civic and political interests of its members, in furtherance of any of the objects such as
the payment of any expenses incurred, either directly or indirectly; the holding of any
meeting or the distribution of any literature/documents in support of any such candidate;
the registration of electors of the selection of a candidate for any legislative body
constituted under or for any local authority; the registration of electors or the selection of
a candidate for any legislative body constituted under/or for any local authority; holding
of political meetings of any kind.

3.Criminal Conspiracy in Trade Disputes:

No office bearer or member of a registered trade union shall be liable to punishment
under sub-section (2) of Section 120 B of the Indian Penal Code, 1860 in respect of any
agreement made between the members for the purpose of furthering any such object of
the trade union as is specified in section its unless the agreement is an agreement to
commit an offence.

4.Immunity from Civil Suit in Certain Cases:

(i) No suit or other legal proceeding shall be maintainable in any civil court against any
registered trade union or any office bearer or member thereof in respect of any act done in
contemplation or furtherance of a trade dispute to which a member of the trade union is a
party on the ground only that such act induces some other person to break a contract of
employment, or that is in interference with the trade, business or employment of some
other person or with the right of some other person to dispose of his capital or of his
labour as he wills.

A registered trade union shall not be liable in any suit or other legal proceeding in any
civil court in respect of any fortuitous act done in contemplation or furtherance of a trade
dispute by an agent of the trade union if it is proved that such person acted without the
knowledge of, or contrary to express instructions given by the executive of the trade
unions.

5.Enforceability of Agreements:
Notwithstanding anything contained in any other law for the time being in force, an
agreement between the members of a registered trade union shall not be void or voidable
merely by reason of the fact that any to the subjects of the agreement are in restraint of
the trade.

6.Right to Inspect Books of Trade Unions:

The account books of a registered trade union and the list of members thereof shall be
open to inspection by an office bearer or member of the trade union at such times as may
be provided for in the rules of the trade union.

7.Right of Minors to Membership of Trade Unions:

Any person who has attained the age of 18 years may be a member of a registered trade
union subject to any rules of the trade union to the contrary, and may subject as aforesaid,
enjoy all the rights of a member and execute all instruments and give all acquittances
necessary to be executed or given under the rules.

8. Effects of Change of Name and of Amalgamation:

The change in the name of a registered trade union shall not affect any rights or
obligations of the trade union or render defective any legal proceeding by or against the
trade union. An amalgamation of 2 or more registered trade unions shall not prejudice any
right of any of such trade unions or any right of a creditor of any of them.

Shortcomings of Trade Unions:

Trade union movement in our country suffers from the following weaknesses:
1.Uneven Growth:
Trade unions are concentrated in large scale industry sector and in big industrial centers.
There is very little trade union activity in small sector, agricultural labour and domestic
sector. Trade unionism has touched only a portion of the working class in India.

2.Small Size:
Most of the unions have low membership though the number of unions and union
membership are increasing, average membership is inadequate.

3.Weak Financial Position:

The average yearly income of unions is very low and inadequate. The subscription rates
are low and many members do not pay the subscription in time. Due to their financial
weakness, most of the unions are not in a position to undertake welfare programmes for
workers.

4.Political Leadership:
Trade unions are under the leadership and control of political parties and outsiders.
Politicians exploit unions and workers for their personal and political gains. Thus, the
political leadership is very harmful to the trade union movement in India.

5.Multiplicity of Unions:
There exist several unions in the same establishment or industry. The existence of rival
unions with conflicting ideology is greatly responsible for unhealthy growth of trade
union movement. In some cases employers encourage split in unions to undermine their
bargaining power.

6. Problem of Recognition:
Employers are under no obligation to give recognition to any union.

7.Absence of Paid Office-Bearers:

Most of the unions do not have Hill-time paid office-bearers. Union activists working on
honorary basis devote only limited time and energy to union activities. Union officers
lack adequate knowledge and skill due to lack of proper training, weak financial position
and political leadership are the main reasons for this state of affairs.

8.Apathy of Members:
Majority of workers do not take keen interest in union activities. The attendance at the
general meetings of unions is very poor.

9.Opposition from Employers:

Trade unions in India have to face opposition from employers. Many employers try to
intimidate or victimise labour leaders, start rival union and bribe union officials.

10. Inter-Union Rivalry:

Multiple unions create rivalry. Unions try to play down each other in order to gain greater
influence among workers. Employers take advantage of infighting. Inter-union rivalry
weakens the power of collective bargaining and reduces the effectiveness of workers in
securing their legitimate rights.

Employer’s Organisations:
Under the trade union Act the term trade unions also includes employer‘s organisations.
But strictly speaking, an employer‘s association means formal body of employers only.

According to Mr. Naval Tata, the objectives of an employer’s association are:

(i) To promote collective bargaining.

(ii) To develop healthy and stable industrial relations.

(iii) To bring employer‘s viewpoint to the notice of the Govt, and

(iv) To represent employers at national and international forums.

There are at present more than 800 registered associations of employers in India. These
are of three types:

1. Local associations to promote the interests of employers in a particular industry or city,

e.g., Indian Jute Mills Association.
2. Regional associations such as the Southern India‘s Mill Owners‘ Association which
serve the needs of employers in a particular region.

3. National or apex associations which co-ordinate the efforts of local and regional
associations. These are federations to which local and regional associations are affiliated.
FICCI, CII, are examples of these federations. These federations perform several
functions such as advice, education, communication, representation.

Organisation Structure:
Organisational structure of National Trade Unions consists of 4 levels as given
below:
1. Conventions/sessions

2. General council (President, VP, Secretary-General, etc.)

3. Provincial bodies (at state level chairman, secretariats)

4. Local bodies (affiliated unions)

National convention/conferences are hold at periodic intervals, say annually or bi-

annually. This is the highest policymaking body. This is presided over by the president of
the union attended by the delegates such as chairmen of state units, representatives of
specialized services, legal experts and delegates from international bodies and special
invitees. Office bearers are also elected by this conference.

General council consists of president, vice-president, secretary and other office bearers. It
carries out policy decisions taken by convention. Various standing committees are set up
on rendering study, analysis and recommendations on various aspects like legislative
measure, Research and publications, international services etc.

State units are headed by chairman of state/regional areas. State units also liaise with
National Headquarters; keep a close watch of faithful implementation of labour
legislation and practices. It assists/influence state government to pass labour friendly
legislation and executive/administration actions.

It is also responsible for membership of various unions representing workers in industrial

undertakings (units) and/or representing trade and industrial units affiliated to the central
trade union. These state units get themselves attached to State/Provincial/HQ/Regional
unions/Units.
Headquarters (HQ) unions are responsible for welfare of its members and membership
drive. As bargaining agents they are involved in collective bargaining with Central
Government/ and or State government and assist passing legislative measures.

How Trade Union Objectives are Achieved?

The objectives of a trade union are achieved by a pursuit of traditional methods.
These are:
(i) The organisation of a trade union on the basis of the craft or industry in which its
members are employed, such as general unions and professional employee‘s
organisations.

(ii) Collective bargaining, which is the essence of industrial relations, for it is through
collective bargaining that the terms and conditions of employment are determined and
under which work is performed‘ satisfactorily.

(iii) Grievance processing and handling procedures, under which grievances are redressed
or dealt with by a correction of situation or by channelling up of these ―up the line‖.

(iv) Arbitration, by which unsettled or unresolved disputes can be settled by an outside

agency.

(v) Political pressure exercised through legislators who are capable of bringing about
changes in labour laws; and

(vi) Mutual insurance through common contributions to meet the financial needs of
workers when there are stoppages of work.

Characteristics of Trade Union:

1. A union normally represents members in many companies throughout the industry or
occupation.

2. A union is fundamentally an employer regulating device. It sharpens management

efficiency and performance while protecting the interests of the members.

3. A union is a part of the working class movement.

4. A union is a pressure organisation originating in the desire on the part of a group with
relatively little power to influence the action of a group with relatively more power.

5. A union is a political institution in its internal structure and procedures.

Trade Union Movement in India:
Trade union movement in our country has a century-long history. The first quarter of the
present century saw the birth of the trade union movement, but the seeds of the movement
were sown much earlier.

In the twenties, soon after the World War I, working class in our country realised the
effectiveness of labour strike as a means of obtaining concessions, higher wages and
better working conditions. Many strikes were declared consequently and most of them
were successful. This success led to the formation of several unions.

The AITUC was set up in 1920 with the objectives of representing worker‘s interests, to
co-ordinate the activities of all labour organisations in the country, and to spread the
message about the need for union movement. Hundreds of unions came into being in big
and small industries. Their number, as well as membership, increased considerably.

A landmark in the history of labour movement was the enactment of the Trade Unions
Act 1926. The Act gave a legal status to the registered trade unions and conferred on
them and their members a measure of immunity from civil suits and criminal
presentation. Registration of union gave them respectability before employers and the
general public.

Towards the end of 1920s, there was a split in the union movement, the split being caused
by the leader‘s ideological differences. The AITUC was captured by the communists. The
moderates formed a new organisation, called All India Trade Union Federation.
Ideological differences and splits had their effect on strikes too. Majority of the strikes
failed.

Unlike 1920s, the 1930s were not favourable to the trade union movement. The
presentation of the communists involved in the Meerut conspiracy case and the failure of
the Bombay textile strike of 1929 brought a lull in trade union activities.

Economic depression of the period also added to the dull phase of union movement.
Retrenchments and strikes were common, the latter being mostly ineffective. There were
further splits in the movement, but just before the World War II some unity was achieved.

The unity was shattered during the World War II because of ideological differences and
mounting cost of living. Industrial unrest increased and the Govt, banned strikes and
lockouts invoking the Defence of India Rules. Luckily workers realized the need for an
organized movement to secure relief. This realisation led to an increase in the number of
unions.
The aftermath of independence was not good for unions. The hopes of workers to secure
better facilities and wages from the national government were not realized. There was
large scale unrest and strikes and lock outs multiplied.

The disunity in the trade union ranks was aggravated by the starting of three central
labour organisations, namely the INTUC in 1947, the Hind Mazdoor Sabha (HMS) in
1948, and the United Trade Union Congress (UTUC) in 1949.

As years went by, more unions and central organisations came into being the movement
became deeply entrenched as of today, there are 50,000 registered unions and most of
them are affiliated to one or the other central trade union.

Trade Union Formation:

Trade unions are formed on different criteria.

Some of the criteria are:

(1) Craft basis, (2) Industrial Unions, (3) General grouping based on place and (4)
Federations.

1. Craft Unions:
In this organisation the labour class is grouped based on particular trade or occupation.
This category is mainly amongst the white collared employees. The measures are mostly
in horizontal system and craft conscious rather than class conscious.

This will have lot of commonality in thinking and approach to problems resolution. The
bank employees‘ union, doctors‘ union, lawyers‘ association, teachers‘ association come
under this category.

2.Industrial Unions:
A particular category of industry will have their own unions. All crafts and trades coming
under that industry are part of the union. Textile mill unions, steel industry unions, mill
mazdoor sangh, grini kamgar unions are some of the examples of industrial unions in
India.

They form a strong force in collective bargaining. They cover all welfare of similar
industry workers in a city or industrial town. Industrial unions are more vocal, volatile
and indulge in agitation and strikes. Similarly these industries face more lockouts and
arbitration for disputes redressal.
3.General Union:
This is a conglomerate group of different industry employees forming a union. This
happens normally in industrial towns, ancillary units, and SSI units in a city or suburb.
Examples are Peenya industrial workers‘ union, Thane industry employees‘ unions and
Jamshedpur labour union.

4.Federations:
These are apex bodies at national level. All trade unions like craft union, industrial unions
and general union become members of federations to have bigger identity. Central trade
unions as federations help smaller unions and support at national level to address their
cause.
UNIT-3
WORK STUDY

―Work study is a generic term for those techniques, method study and work
measurement which are used in the examination of human work in all its contexts. And
which lead systematically to the investigation of all the factors which affect the efficiency
and economy of the situation being reviewed, in order to effect improvement.‖

Framework of work study

Work study is a means of enhancing the production efficiency (productivity) of the firm
by elimination of waste and unnecessary operations. It is a technique to identify non-
value adding operations by investigation of all the factors affecting the job. It is the only
accurate and systematic procedure oriented technique to establish time standards. It is
going to contribute to the profit as the savings will start immediately and continue
throughout the life of the product. Method study and work measurement is part of work
study. Part of method study is motion study, work measurement is also called by the
name ‗Time study‘.

Advantages of Work Study

Following are the advantages of work study:

1. It helps to achieve the smooth production flow with minimum interruptions.

2. It helps to reduce the cost of the product by eliminating waste and unnecessary
operations.
3. Better worker-management relations.
4. Meets the delivery commitment.
5. Reduction in rejections and scrap and higher utilization of resources of the
organization.
 6. Helps to achieve better working conditions.
7. Better workplace layout.
8. Improves upon the existing process or methods and helps in standardization and
simplification.
9. Helps to establish the standard time for an operation or job which has got
application in manpower planning, production planning.

Concept and Definition:

Method study is basically conducted to simplify the work or working methods and must
go towards higher productivity. It is always desirable to perform the requisite function
with desired goal minimum consumption of resources. Method signifies how a work is to
be done i.e. description of how we consume resources in order to achieve our target?

Methods are integral part of work accomplishment and signify:

1. How well our methods utilize the limited available resources such as manpower,
machines, materials and money.

2. How our methods physically affect production output of the unit.

3. The quality of output obtained by application of our methods.

Thus methods can determine the amount of input materials, time power and money
consumed. So methods may be considered the core where one can attempt to reduce the
consumption of resources thereby reducing cost per unit output through utilization of
proper methods. The method design can decided the cost and quality of output produced.

Method Study may be defined as:

―A procedure for examining the various activities associated with the problem which
ensures a systematic, objective and critical evaluation of the existing factors and in
addition and imaginative approach while developing improvements‖.

There are three aspects of its application:

(1) Method study proper is concerned with broad investigation and improvement of a
shop/section, the layout of equipment and machines and the movement of men and
materials.

(2) Motion study is a more detailed investigation of the individual worker/ operator,
layout of his machines, tools, jigs and fixtures and movement of his limbs when he
performs his job. The ergomics aspect i.e. study of environment, body postures, noise
level and surroundings temperature also form part of investigation.

(3) Micro motion study i.e. much more detailed investigation of very rapid movements of
the various limbs of the worker.

So, motion study is an analysis of the flow and processing of material and the movements
of men through or at various work stations. Thus motion study analyses the human
activities which make up an operation. Whereas method study or methods analysis has
been defined as: ―systematic procedure for the critical analysis of movements made by
men, materials and machines in performing any work‖.

Now because by definition method study includes the study of all facets of human work
and all factors affecting the work so motion study be considered as a part of method
study.

Scope of Method Study:

The task of work simplification and compatible work system design concerns the
followings:
(i) Layout of shop floor and working areas or work stations.

(ii) Working conditions i.e. ergomics etc.

(iii) Handling distances (material movement)

(iv) Tooling and equipment used.

(v) Quality standards to be achieved.

(vi) Operators and operations in achieving the production targets.

(vii) Materials to be used.

(viii) Power required and available.

(ix) Work cycle time.

(x) Working processes.

All these factors are related to method study and possible improvements may be:
(a)Short term: The improvements which can be introduced quickly and economically.
These may be concerned with management and work force.

(b)Long term:The improvements which are not acceptable to management at present and
which require good investment. Improvement approach to method design is essential
since a method describes how resource are to be used in order to convert them into
desired output (final products) in order to accomplish the purpose through a network of
facilities.

Operation and route sheets of production process contains in instructions that how a
particular product/component can be manufactured. This usually contains the details
about time required to perform the required operation.

The target is the minimization of production costs by affecting the consumer‘s

acceptability by incorporating changes or by developing requisite resigns. But the design
engineer will not be responsible for actual implementation of method designed by him.
Likewise the Process Engineer will try to select best methods which have most
economical sequence of operations by using most efficient infrastructure facilities (may
be machines) with processing minimum time.
TIME STUDY

Time study is also called work measurement. It is essential for both planning and control
of operations. According to British Standard Institute time study has been defined
as “The application of techniques designed to establish the time for a qualified worker to
carry out a specified job at a defined level of performance.”

Steps in Making Time Study

Stop watch time is the basic technique for determining accurate time standards. They are
economical for repetitive type of work. Steps in taking the time study are:

1. Select the work to be studied.

2. Obtain and record all the information available about the job, the operator and the
working conditions likely to affect the time study work.
3. Breakdown the operation into elements. An element is a instinct part of a specified
activity composed of one or more fundamental motions selected for convenience
of observation and timing.
4. Measure the time by means of a stop watch taken by the operator to perform each
element of the operation. Either continuous method or snap back method of timing
could be used.
5. At the same time, assess the operators effective speed of work relative to the
observer‘s concept of ‗normal‘ speed. This is called performance rating
6. Adjust the observed time by rating factor to obtain normal time for each element

7 Add the suitable allowances to compensate for fatigue, personal needs,

contingencies etc. to give standard time for each element.

7. Compute allowed time for the entire job by adding elemental standard times
considering frequency of occurrence of each element.
8. Make a detailed job description describing the method for which the standard time
is established.
9. Test and review standards wherever necessary. The basic steps in time study are
represented by a block diagram in the figure ―Steps in time study‖

Computation of Standard Time

Standard time is the time allowed to an operator to carry out the specified task under
specified conditions and defined level of performance. The various allowances are added
to the normal time as applicable to get the standard time ―Components standard time‖.
Standard time may be defined as the, amount of time required to complete a unit of work:
(a) under existing working conditions, (b) using the specified method and machinery, (c)
by an operator, able to the work in a proper manner, and (d) at a standard pace.

Thus basic constituents of standard time are:

1. Elemental (observed time).

2. Performance rating to compensate for difference in pace of working.
3. Relaxation allowance.
4. Interference and contingency allowance.
5. Policy allowance.

Steps in time study

WORK STUDY (TIME AND MOTION STUDY)

MOTION STUDY

Motion study is part of method study where analysis of the motion of an operator or work
will be studied by following the prescribed methods.
Principles of Motion study
There are a number of principles concerning the economy of movements which have been
developed as a result of experience and which forms the basis for the development of
improved methods at the workplace. These are first used by Frank Gilbreth, the founder
of motion study and further rearranged and amplified by Barnes, Maynard and others.
The principles are grouped into three headings:

A. Use of the human body.

B. Arrangement of workplace.
C. Design of tools and equipment.

USES OF HUMAN BODY

When possible:

1. The two hands should begin and complete their movements at the same time.
2. The two hands should not be idle at the same time except during periods of rest.
3. Motions of the arms should be made simultaneously.
4. Hand and body motions should be made at the lowest classification at which it is
possible to do the work satisfactorily.
5. Momentum should be employed to help the worker, but should be reduced to a
minimum whenever it has to be overcome by muscular effort.
6. Continuous curved movements are to be preferred to straight line motions
involving sudden and changes in directions.
7. ‗Ballistic‘ (i.e., free swinging) movements are faster, easier and more accurate
than restricted or controlled movements.
8. Rhythm is essential to the smooth and automatic performance of a repetitive
operation. The work should be arranged to permit easy and natural rhythm
wherever possible.
9. Work should be arranged so that eye movements are confined to a comfortable
area, without the need for frequent changes of focus.

ARRANGEMENT OF THE WORKPLACE

1. Definite and fixed stations should be provided for all tools and materials to permit
habit formation.
2. Tools and materials should be pre-positioned to reduce searching.
3. Gravity fed, bins and containers should be used to deliver the materials as close to
the point of use as possible.
4. Tools, materials and controls should be located within a maximum working area
and as near to the worker as possible.
5. Materials and tools should be arranged to permit the best sequence of motions.
6. ‗Drop deliveries‘ or ejectors should be used wherever possible, so that the
operative does not have to use his hands to dispose of finished parts.
 7. Provision should be made for adequate lightning, and a chair of type and height to
permit good posture should be provided. The height of the workplace and seat
should be arranged to allow alternate standing and seating.

DESIGN OF TOOLS AND EQUIPMENTS

1. The color of the workplace should contrast with that of work and thus reduce eye
fatigue.
2. The hands should be relieved of all work of ‗holding‘ the work piece where this
can be done by a jig or fixture or foot operated device.
3. Two or more tools should be combined where possible.
4. Where each finger performs some specific movement, as in typewriting, the load
should be distributed in accordance with the inherent capacities of the fingers.
5. Handles such as those used on screw drivers and cranks should be designed to
permit maximum surface of the hand to come in contact with the handle.
6. Levers, cross bars and wheel bars should be in such position that operator can
manipulate them with least body change and with greatest mechanical advantage.

Recording Techniques of Motion Study

Most of the techniques mentioned in method study is used in the motion study. They are
as follows:

Macro Motion Study

a. Flow process chart

b. Two handed process chart.

WORK MEASUREMENT

Work measurement is also called by the name ‗time study‘. Work measurement is
absolutely essential for both the planning and control of operations. Without measurement
data, we cannot determine the capacity of facilities or it is not possible to quote delivery
dates or costs. We are not in a position to determine the rate of production and also labor
utilization and efficiency. It may not be possible to introduce incentive schemes and
standard costs for budget control.

Objectives of Work Measurement

The use of work measurement as a basis for incentives is only a small part of its total
application. The objectives of work measurement are to provide a sound basis for:

1. Comparing alternative methods.

 2. Assessing the correct initial manning (manpower requirement planning).
3. Planning and control.
4. Realistic costing.
5. Financial incentive schemes.
6. Delivery date of goods.
7. Cost reduction and cost control.
8. Identifying substandard workers.
9. Training new employees.

Techniques of Work Measurement

For the purpose of work measurement, work can be regarded as:

1. Repetitive work: The type of work in which the main operation or group of
operations repeat continuously during the time spent at the job. These apply to
work cycles of extremely short duration.
2. Non-repetitive work: It includes some type of maintenance and construction
work, where the work cycle itself is hardly ever repeated identically.

Various techniques of work measurement are:

1. Time study (stop watch technique),

2. Synthesis,
3. Work sampling,
4. Predetermined motion and time study,
5. Analytical estimating.

Time study and work sampling involve direct observation and the remaining are data
based and analytical in nature.

1 Time study: A work measurement technique for recording the times and rates of
working for the elements of a specified job carried out under specified conditions
and for analyzing the data so as to determine the time necessary for carrying out
the job at the defined level of performance. In other words measuring the time
through stop watch is called time study.

2 Synthetic data A work measurement technique for building up the time for a
job or pans of the job at a defined level of performance by totaling element times
obtained previously from time studies on other jobs containing the elements
concerned or from synthetic data.

3 Work sampling: A technique in which a large number of observations are made

over a period of time of one or group of machines, processes or workers. Each
observation records what is happening at that instant and the percentage of
observations recorded for a particular activity, or delay, is a measure of the
percentage of time during which that activities delay occurs.
 4.Predetermined motion time study (PMTS) A work measurement technique
whereby times established for basic human motions (classified according to the
nature of the motion and conditions under which it is made) are used to build up
the time for a job at the defined level of performance. The most commonly used
PMTS is known as Methods Time Measurement (MTM).

5 Analytical estimating: A work measurement technique, being a development of

estimating, whereby the time required to carry out elements of a job at a defined
level of performance is estimated partly from knowledge and practical experience
of the elements concerned and partly from synthetic data. The work measurement
techniques and their applications are shown in the following table.

FOUNDATION OF WORK STUDY

Work-study is designed to give part-time employment to undergraduate and graduate

students who need the income to help meet the costs of post-secondary education and
other expenses. South eastern is committed to offering students excellent training,
including the opportunity to obtain hands-on experience through the work-study program.

Student workers should not be allowed to work more than a total of 25 hours per week
while school is in session, or a total of 40 hours per week during breaks. This includes
students working more than one work-study job. During the week of finals, students may
work when they are not scheduled to be taking an exam.

The Role of Trade Unions in Industrial Relations


Trade or labor unions have been around since the 1930s to resist through equal bargaining
power the domination of employers over employees and to represent workers‘ interests in
the employment relationship. It is through union efforts that workers benefit from better
pay and working conditions, and that they are treated with dignity and respect at work.
The importance of trade unions cannot be overstated even though membership has been
on a steady decline.
Collective Bargaining
Labour unions developed to grant employees equal bargaining power with their
employers, who traditionally had the ability to exclusively set the terms and conditions of
work and pay. Unions represent workers within a given industry in negotiations with their
employers. Since the union comprises a group of workers, it has a greater voice than if
employees were dealing with employers individually. For example, unions are credited
with abolishing sweatshops and child labor in the United States because they pushed for
these practices to end. The National Labor Relations Act guarantees employees‘ right to
bargain collectively through their chosen labor union representatives. Unions can
organize strikes, boycotts, go-slows and sit-ins to get employers to consider their
proposals.
Employee Welfare
Unions have successfully fought for better terms and conditions for workers. They
represent workers‘ interests and have secured a variety of benefits, such as higher wages
for unionized employees, work-life balance characterized by reasonable work schedules,
job security and protection from arbitrary action by employers. In a September 2012
essay on the CNN website, Democratic strategist Donna Brazile asserted that is also due
in part to union activity that discrimination in the workplace was outlawed and that
workers have access to health care, safe working conditions and guaranteed Social
Security. Unions not only have given workers dignity in the workplace, but they also
consistently facilitate enhanced welfare and standards of living for American workers.
Unfair Practices
Labour unions check the unfair labor practices of employers. The NLRA declares that it
is unlawful for employers to dominate a union, discriminate against workers engaged in
union activity, victimize workers who file charges against them with the National Labor
Relations Board or interfere with employees engaged in concerted union activity. If the
employer does any of these prohibited acts, the union can take it up with the board on
behalf of the employees. For example, the union representing Boeing Co. engineers and
technical workers filed charges against the company for interfering with employees
engaging in concerted union activity. The board investigates charges and may take a
variety of actions, including issuance of cease-and-desist or reinstatement orders to
remedy unfair treatment against employees. Unions ensure that employers comply with
the law and can lodge appeals in federal court if employers do not respect board
decisions.
Legislation
Unions also play a key role in developing labor laws and regulations for effective worker
protection. The unions initiate the push for regulation in areas that concern employees in
the workplace. They lobby for the creation of laws and regulations and disseminate
information to the employees about them. Measures such as the NLRA, the Social
Security Act, the Family Medical Leave Act and the Occupational Safety and Health Act
exist as a result of union efforts for better terms and conditions for workers. Unions
monitor the status of implementation of employee welfare laws and regulations to ensure
they are properly enforced.
Work Sampling: Definition, Theory and Confidence Level of Work Sampling!
Definition:
―Work sampling is a method in which a large number of instantaneous observations are
made at random time intervals over a period of time or a group of machines, workers or
processes/operations. Each observation records what is happening at that instant and the
percentage of observations recorded for a particular activity or delay/idleness is a measure
of the percentage of time during which that activity or delay/idleness occurs‖.

Work sampling has a long and impressive list of applications but all of them fall into
one of the following three categories:
(i) Work sampling can be used as ratio study of working and idle times.

(ii) It can be utilized as performance sampling study in which working and idleness on
working times are measured and a performance index is prepared.

(iii) It can be used as a work measurement technique.

Theory of Work Sampling:

It states that the percentage of observations recorded on an operation/ process in any state
is a reliable estimate of the percentage time the operation/ process is in that state,
provided, ―sufficient number of observations are taken at random‖.

It may be noted that here, particular stress should be paid on the words ―random‖ and
―sufficient number of observations‖. In this technique, some error may occur but the
magnitude of error tends to decrease as the number of samples increases.

Work sampling is a sampling method and depends upon the laws of probability. A sample
taken at random from a large population provides a good estimate of the distribution of
the population. To make it clearer, let us consider the following example.
A worker while working during his shift either does the job assigned to him or remains
idle for one or the other reason. The following table shows that out of total 50
observations, there were 45 working observations and five idle observations.

No of
State of worker
OBSERVATION

Working 45

Idle 5

This table indicates the working time and idle time.

In this Example, the idle time percentage would be 5/50 x 100 = 10%

Working time would be 45/50 x 100 = 90%

This investigation is for one worker for a shift of 8 hours a day and indicates that the
operator was idle for 10% or 48 minutes in a shift of 8 hours (480 minutes) while working
for 90% or 432 minutes in one shift.

Confidence Levels:
The results obtained by work sampling technique differ considerably from the results
actually achieved by continuous recording of time. The accuracy of result depends upon
the number or observations and the limits of confidence level because the sampling
procedure used involves certain degree of error. So it is important to decide, what level of
confidence is desired the final ―Work Sampling‖ results.
During a investigation, if we increase the number of observations considerably and in
each observation then number of activities are large we can obtain a smoother curve
called normal distribution curve as shown in Fig. 7.1.

The most common confidence level is 95%. The area under the curve at 2 sigma or two
standard deviations is 95.45% which is rounded off gives 95% This indicates that the
probability is 95% of the time the random, observations will be true or represents the fact
and 5% of the time false or will not. For majority of cases, an accuracy of 5% is
considered satisfactory. This is usually referred to as the percentage standard error.

Sample Size Determination. To obtain a desired accuracy level an analyst is required to

take sufficient number of observations. Following formula may be used for finding the
requisite number of observation in order to achieve the desired accuracy:

Limit of error = Sp
Where x =1, 2 or 3 for confidence level of 68%, 95% and 99% or one sigma, two sigma
three sigma confidence levels respectively.

S = Desired relative accuracy.

P = Percentage occurrence of an activity or delay expressed in decimal e.g. 10% =0.10

N = Sample size or total number of random observations.
UNIT - 4
QUALITY CONTROL
INTRODUCTION

In any business organization, profit is the ultimate goal. To achieve this, there are several
approaches. Profit may be maximized by cutting costs for the same selling price per unit.
If it is a monopolistic business, without giving much of importance to the cost reduction
programs, the price may be fixed suitably to earn sufficient profit. But, to survive in a
competitive business environment, goods and services produced by a firm should have
the minimum required quality. Extra quality means extra cost. So, the level of quality
should be decided in relation to other factors such that the product is well absorbed in the
market. In all these cases, to have repeated sales and thereby increased sales revenue,
basic quality is considered to be one of the supportive factors.
Quality is a measure of how closely a good or service conforms to specified standard.
Quality standards may be any one or a combination of attributes and variables of the
product being manufactured. The attributes will include performance, reliability,
appearance, commitment to delivery time, etc., variables may be some measurement
variables like, length, width, height, diameter, surface finish, etc.
Most of the above characteristics are related to products. Similarly, some of the quality
characteristics of services are meeting promised due dates, safety, comfort, security, less
waiting time and so forth. So, the various dimensions of quality are performance,
features, reliability, conformance, durability, serviceability, aesthetics, perceived quality,
safety, comfort, security, commitment to due dates, less waiting time, etc.
QUALITY

Different meaning could be attached to the word quality under different circumstances.
The word quality does not mean the quality of manufactured product only. It may refer to
the quality of the process (i.e., men, material, and machines) and even that of
management. Where the quality manufactured product referred as or defined as ―Quality
of product as the degree in which it fulfills the requirement of the customer. It is not
absolute but it judged or realized by comparing it with some standards‖.
Quality begins with the design of a product in accordance with the customer specification
further it involved the established measurement standards, the use of proper material,
selection of suitable manufacturing process etc., quality is a relative term and it is
generally used with reference to the end use of the product.
Crosby defined as ―Quality is conformance to requirement or specifications‖. Juran
defined as ―Quality is fitness for use‖. ―The Quality of a product or service is the fitness
of that product or service for meeting or exceeding its intended use as required by the
customer.‖
Fundamental Factors Affecting Quality
The nine fundamental factors (9 M’s), which are affecting the quality of products and
services, are: markets, money, management, men, motivation, materials, machines and
mechanization. Modern information methods and mounting product requirements.

1. Market: Because of technology advancement, we could see many new products to

satisfy customer wants. At the same time, the customer wants are also changing
dynamically. So, it is the role of companies to identify needs and then meet it with
existing technologies or by developing new technologies.
2. Money: The increased global competition necessitates huge outlays for new
equipments and process. This should be rewarded by improved productivity. This
is possible by minimizing quality costs associated with the maintenance and
improvements of quality level.
3. Management: Because of the increased complex structure of business
organization, the quality related responsibilities lie with persons at different levels
in the organization.
4. Men: The rapid growth in technical knowledge leads to development of human
resource with different specialization. This necessitates some groups like, system
engineering group to integrate the idea of full specialization.
5. Motivation: If we fix the responsibility of achieving quality with each individual
in the organization with proper motivation techniques, there will not be any
problem in producing the designed quality products.
6. Materials: Selection of proper materials to meet the desired tolerance limit is also
an important consideration. Quality attributes like, surface finish, strength,
diameter etc., can be obtained by proper selection of material.
7. Machines and mechanization: In order to have quality products which will lead
to higher productivity of any organization, we need to use advanced machines and
mechanize various operations.
8. Modern information methods: The modern information methods help in storing
and retrieving needed data for manufacturing, marketing and servicing.
9. Mounting product requirements: Product diversification to meet customers taste
leads to intricacy in design, manufacturing and quality standards. Hence,
companies should plan adequate system to tackle all these requirements.

CONTROL CHARTS
The process through which the standards are established and met with standards is called
control. This process consists of observing our activity performance, comparing the
performance with some standard and then taking action if the observed performance is
significantly too different from the standards.
 The control process involves a universal sequence of steps as follows:

1. Choose the control object

2. Choose a unit of measure
3. Set the standard value
4. Choose a sensing device which can measure
5. Measure actual performance
6. Interpret the difference between actual and standard
7. Taking action.

Need for Controlling Quality

In the absence of quality, the following will result:

1. No yardstick for comparing the quality of goods/services.

2. Difficulty in maintaining consistency in quality.
3. Dissatisfied customers due to increased maintenance and operating costs of
products/services.
4. Increased rework cost while manufacturing products/providing services.
5. Reduced life time of the products/services.
6. Reduced flexibility with respect to usage of standard spare parts.
7. Hence, controlling quality is an essential activity.

In all production processes, we need to monitor the extent to which our products meet
specifications. In the most general terms, there are two "enemies" of product quality:
 deviations from target specifications
 excessive variability around target specifications
 Control Chart
Also called: statistical process control
The control chart is a graph used to study how a process changes over time. Data are
plotted in time order. A control chart always has a central line for the average, an upper
line for the upper control limit and a lower line for the lower control limit. These lines are
determined from historical data. By comparing current data to these lines, you can draw
conclusions about whether the process variation is consistent (in control) or is
unpredictable (out of control, affected by special causes of variation).
Control charts for variable data are used in pairs. The top chart monitors the average, or
the centering of the distribution of data from the process. The bottom chart monitors the
range, or the width of the distribution. If your data were shots in target practice, the
average is where the shots are clustering, and the range is how tightly they are clustered.
Control charts for attribute data are used singly.
When to Use a Control Chart
 When controlling ongoing processes by finding and correcting problems as they occur.
 When predicting the expected range of outcomes from a process.
 When determining whether a process is stable (in statistical control).
 When analyzing patterns of process variation from special causes (non-routine events)
or common causes (built into the process).
 When determining whether your quality improvement project should aim to prevent
specific problems or to make fundamental changes to the process.

Common Types of Charts

The types of charts are often classified according to the type of quality characteristic that
they are supposed to monitor: there are quality control charts for variables and control
charts for attributes. Specifically, the following charts are commonly constructed for
controlling variables:
 X-bar chart. In this chart, the sample means are plotted in order to control the mean
value of a variable (e.g., size of piston rings, strength of materials, etc.).
 R chart. In this chart, the sample ranges are plotted in order to control the variability of
a variable.
 S chart. In this chart, the sample standard deviations are plotted in order to control the
variability of a variable.
 S**2 chart. In this chart, the sample variances are plotted in order to control the
variability of a variable.
For controlling quality characteristics that represent attributes of the product, the
following charts are commonly constructed:
 C chart. In this chart (see example below), we plot the number of defectives (per batch,
per day, per machine, per 100 feet of pipe, etc.). This chart assumes that defects of the
quality attribute are rare, and the control limits in this chart are computed based on
the Poissondistribution (distribution of rare events).

 U chart. In this chart we plot the rate of defectives, that is, the number of defectives
divided by the number of units inspected (the n; e.g., feet of pipe, number of batches).
Unlike the C chart, this chart does not require a constant number of units, and it can be
used, for example, when the batches (samples) are of different sizes.
 Np chart. In this chart, we plot the number of defectives (per batch, per day, per
machine) as in the C chart. However, the control limits in this chart are not based on the
distribution of rare events, but rather on the binomial distribution. Therefore, this chart
should be used if the occurrence of defectives is not rare (e.g., they occur in more than
5% of the units inspected). For example, we may use this chart to control the number of
units produced with minor flaws.
 P chart. In this chart, we plot the percent of defectives (per batch, per day, per machine,
etc.) as in the U chart. However, the control limits in this chart are not based on the
distribution of rare events but rather on the binomial distribution (of proportions).
Therefore, this chart is most applicable to situations where the occurrence of defectives
is not rare (e.g., we expect the percent of defectives to be more than 5% of the total
number of units produced)

Tagucchi
CRITISM OF TQM
 Total Quality Management is a management approach that originated in the 1950s and
has steadily become more popular since the early 1980s. Total Quality is a description of
the culture, attitude and organization of a company that strives to provide customers with
products and services that satisfy their needs. The culture requires quality in all aspects of
the company‘s operations, with processes being done right the first time and defects and
waste eradicated from operations.

Total Quality Management, TQM, is a method by which management and employees can
become involved in the continuous improvement of the production of goods and services.
It is a combination of quality and management tools aimed at increasing business and
reducing losses due to wasteful practices.

Some of the companies who have implemented TQM include Ford Motor Company,
Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.1

TQM Defined
TQM is a management philosophy that seeks to integrate all organizational functions
(marketing, finance, design, engineering, and production, customer service, etc.) to focus
on meeting customer needs and organizational objectives.

TQM views an organization as a collection of processes. It maintains that organizations

must strive to continuously improve these processes by incorporating the knowledge and
experiences of workers. The simple objective of TQM is ―Do the right things, right the
first time, every time.‖ TQM is infinitely variable and adaptable. Although originally
applied to manufacturing operations, and for a number of years only used in that area,
TQM is now becoming recognized as a generic management tool, just as applicable in
service and public sector organizations. There are a number of evolutionary strands, with
different sectors creating their own versions from the common ancestor. TQM is the
foundation for activities, which include:

 Commitment by senior management and all employees

 Meeting customer requirements
 Reducing development cycle times
 Just in time/demand flow manufacturing
 Improvement teams
 Reducing product and service costs
 Systems to facilitate improvement
 Line management ownership
 Employee involvement and empowerment
 Recognition and celebration
 Challenging quantified goals and benchmarking
 Focus on processes / improvement plans
 Specific incorporation in strategic planning
 Total Quality Management Principles: The 8 Primary Elements of TQM
Total quality management can be summarized as a management system for a customer-
focused organization that involves all employees in continual improvement. It uses
strategy, data, and effective communications to integrate the quality discipline into the
culture and activities of the organization. Many of these concepts are present in
modern Quality Management Systems, the successor to TQM. Here are the 8 principles of
total quality management:
1. Customer-focused
The customer ultimately determines the level of quality. No matter what an organization
does to foster quality improvement—training employees, integrating quality into the
design process, upgrading computers or software, or buying new measuring tools—the
customer determines whether the efforts were worthwhile.
2. Total employee involvement
All employees participate in working toward common goals. Total employee commitment
can only be obtained after fear has been driven from the workplace, when empowerment
has occurred, and management has provided the proper environment. High-performance
work systems integrate continuous improvement efforts with normal business operations.
Self-managed work teams are one form of empowerment.
3. Process-centered
A fundamental part of TQM is a focus on process thinking. A process is a series of steps
that take inputs from suppliers (internal or external) and transforms them into outputs that
are delivered to customers (again, either internal or external). The steps required to carry
out the process are defined, and performance measures are continuously monitored in
order to detect unexpected variation.
4. Integrated system
Although an organization may consist of many different functional specialties often
organized into vertically structured departments, it is the horizontal processes
interconnecting these functions that are the focus of TQM.
 Micro-processes add up to larger processes, and all processes aggregate into the
business processes required for defining and implementing strategy. Everyone must
understand the vision, mission, and guiding principles as well as the quality policies,
objectives, and critical processes of the organization. Business performance must be
monitored and communicated continuously.
 An integrated business system may be modeled after the Baldrige National Quality
Program criteria and/or incorporate the ISO 9000 standards. Every organization has a
unique work culture, and it is virtually impossible to achieve excellence in its products
and services unless a good quality culture has been fostered. Thus, an integrated
 system connects business improvement elements in an attempt to continually improve
and exceed the expectations of customers, employees, and other stakeholders.
5. Strategic and systematic approach
A critical part of the management of quality is the strategic and systematic approach to
achieving an organization‘s vision, mission, and goals. This process, called strategic
planning or strategic management, includes the formulation of a strategic plan that
integrates quality as a core component.
6. Continual improvement
A major thrust of TQM is continual process improvement. Continual improvement drives
an organization to be both analytical and creative in finding ways to become more
competitive and more effective at meeting stakeholder expectations.
7. Fact-based decision making
In order to know how well an organization is performing, data on performance measures
are necessary. TQM requires that an organization continually collect and analyze data in
order to improve decision making accuracy, achieve consensus, and allow prediction
based on past history.
8. Communications
During times of organizational change, as well as part of day-to-day operation, effective
communications plays a large part in maintaining morale and in motivating employees at
all levels. Communications involve strategies, method, and timeliness.

Six Sigma is a relatively new concept as compared to Total Quality Management

(TQM). However, when it was conceptualized, it was not intended to be a
replacement for TQM. Both Six Sigma and TQM have many similarities and are
compatible in varied business environments, including manufacturing and service
industries. While TQM has helped many companies in improving the quality of
manufactured goods or services rendered, Six Sigma has the potential of delivering
even sharper results.

Total Quality Management

Total Quality Management is often associated with the development, deployment,
and maintenance of organizational systems that are required for various business
processes. It is based on a strategic approach that focuses on maintaining existing
quality standards as well as making incremental quality improvements. It can also be
described as a cultural initiative as the focus is on establishing a culture of
collaboration among various functional departments within an organization for
improving overall quality.

Comparison To Six Sigma

In comparison, Six Sigma is more than just a process improvement program as it is
based on concepts that focus on continuous quality improvements for achieving near
perfection by restricting the number of possible defects to less than 3.4 defects per
million. It is complementary to Statistical Process Control (SPC), which uses
statistical methods for monitoring and controlling business processes. Although both
SPC and TQM help in improving quality, they often reach a stage after which no
further quality improvements can be made. Six Sigma, on the other hand, is different
as it focuses on taking quality improvement processes to the next level.
The basic difference between Six Sigma and TQM is the approach. While TQM
views quality as conformance to internal requirements, Six Sigma focuses on
improving quality by reducing the number of defects. The end result may be the same
in both the concepts (i.e. producing better quality products). Six Sigma helps
organizations in reducing operational costs by focusing on defect reduction, cycle
time reduction, and cost savings. It is different from conventional cost cutting
measures that may reduce value and quality. It focuses on identifying and eliminating
costs that provide no value to customers such as costs incurred due to waste.
TQM initiatives focus on improving individual operations within unrelated business
processes whereas Six Sigma program focus on improving all the operations within
a single business process. Six Sigma projects require the skills of professionals that
are certified as ‗black belts‘ whereas TQM initiatives are usually a part-time activity
that can be managed by non-dedicated managers.

Applications Where Six Sigma Is Better

Six Sigma initiatives are based on a preplanned project charter that outlines the scale
of a project, financial targets, anticipated benefits and milestones. In comparison,
organizations that have implemented TQM, work without fully knowing what the
financial gains might be. Six Sigma is based on DMAIC (Define-Measure-Analyze-
Improve-Control) that helps in making precise measurements, identifying exact
problems, and providing solutions that can be measured.

Conclusion
Six sigma is also different from TQM in that it is fact based and data driven, result
oriented, providing quantifiable and measurable bottom-line results, linked to
strategy and related to customer requirements. It is applicable to all common business
processes such as administration, sales, marketing and R & D. Although many tools
and techniques used in Six Sigma may appear similar to TQM, they are often distinct
as in Six Sigma, the focus is on the strategic and systematic application of the tools
on targeted projects at the appropriate time. It is predicted that Six Sigma will outlast
TQM as it has the potential of achieving more than TQM.