MS 24 Employment Relations Test Paper

MBA - Master of Business Administration

Note: This paper consists of two sections A and B. Attempt any three questions from Section A. Section B is compulsory. All questions carry equal marks.

1. Describe the concept and scope of industrial relations. Discuss various approaches to industrial relations.

2. Distinguish between trade unions and managerial associations. Discuss the factors influencing the formation of managerial associations.

3. Explain the concept of collective bargaining and discuss the emerging issues of collective bargaining in India.

4. Discuss the nature and causes of indiscipline in industry. What are the different processes of disciplinary action?

5. Write short notes on any three of the following :

(a) Voluntary arbitration
(b) Grievance procedure
(c) Issues involved in participative forums in India
(d) Recognition of unions
(e) Employers' organisations in India

SECTION B

6. Read the case carefully and answer the questions at the end.

V.J. Textiles is a leading industry having a workforce of more than 1200 employees, engaged in the manufacture of cotton yarn of different counts. The company has a well-established distribution network in different parts of the country. It has modernized all its plants, with a view to improve the productivity and maintain quality. To maintain good human relations in the plants and the organisation as a whole, it has extended all possible facilities to the employees. Compared to other mills, the employees of V.J. Industries are enjoying higher wages and other benefits.

The company has a chief executive, followed by executive's in-charge of different functional areas. The Industrial Relations Department is headed by the Industrial Relations Manager. The employees are represented by five trade unions - A, B, C, D and E (unions are alphabetically presented based on membership) - out of which the top three unions are recognised by the management for purposes of negotiations. AII the unions have maintained good relations with the management' individually and collectively.

For the past ten years, the company has been distributing bonus to the workers at rates more than the statutory minimum prescribed under the Bonus Act. Last year, for declaration of rate of bonus, the management had a series of discussions with all recognised unions and finally announced a bonus, which was in turn agreed upon by all the recognised unions. The very next day when the management prepared the settlement and presented it before the union representatives, while Unions A and C signed the same, the leader of Union B refused to do so and walked out, stating that the rate of bonus declared was not sufficient The next day. Union B issued a strike notice to the management asking for higher bonus. The management tried its level best to avoid the unpleasant situation, but in vain. As a result, the members of Union B went on strike. They were joined by the members of Union D.

During the strike, the management could probe the reason for the deviant behaviour of Union B leader; it was found that leader of Union A, soon after the first meeting, had stated in the presence of a group of workers, "It is because of me that the management has agreed to declare this much amount of bonus to the employees. Union B has miserably failed in its talks with the management for want of initiative and involvement".

This observation somehow reached the leader of Union B as a result of which he felt insulted. Soon after identifying the reason for Union B's strike call the Industrial Relations Manager brought about a compromise between the leaders of Unions A and B. Immediately after this meeting the strikers members of Unions B and D) resumed work and the settlement was signed for the same rate of bonus as was originally agreed upon.

Questions:

1. Was the leader of Union A justified in making remarks which made the leader of Union B feel offended?
2. What should be management's long term strategy for avoiding recurrence of inter-union differences on such issues?
3. If you were the Industrial Relations Manager what would you have done had the Union B resorted to strike for a reason other than that mentioned in the case.