In The Name Of Allah
Lesson title:
Industrial Relations at Cummins India Limited- A Case Study
: Dr.
: University
Fild of study: Industrial management
Provider:
2014
Procedia Economics and Finance 11 ( 2014 ) 86 – 94
Industrial Relations at Cummins India Limited- A Case Study
Arti Kurubetti *
Dr Asha Nagendra **
Title:
An industrial relations system consists of the whole gamut of relationships between employees and employees and between employees and mployers which are managed by means of conflict and cooperationlike pay, hours of works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc., laws relating to such activities, regulations governing labour welfare, social security, industrial relations, issues concerning with workers participation in management, collective bargaining, etc.
Abstract:Page1
The present research is a case study of the industrial relations scenario at Cummins India Limited. 50 respondents from the organization had been picked on the basis of random convenience sampling. It was found that industrial relations have been cordial, harmonious and collaborative since 2010. Communication and meeting with union representatives and workers is there on regular basis. The management representative, store managers regularly meet on weekly and monthly basis.
Abstract:Page2
Industrial relations manager conducts weekly meetings and resolves grievances immediately. In addition to this the senior leadership meets on monthly basis with union. CEO of the company also communicates the goals of the business and situations of the business to the employees on quarterly basis. The voices of the employees are captured during these meetings and the issues/grievances are resolved as per feasibility. . Line managers and shop floor managers are regularly interacting with IR Department for day to day issues of production associates and communicating the issues to IR Department for resolving.
Abstract:Page3
Industrial Relations,
Cummins India Limited, grievances
Keywords:
Introduction
An industrial relations system consists of the whole gamut of relationships between employees and employees and between employees and employers which are managed by means of conflict and cooperation. It includes matter pertaining to employment conditions like pay, hours of works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc., laws relating to such activities, regulations governing labour welfare, social security, industrial relations, issues concerning with workers participation in management, collective bargaining, etc.
To study the procedure of wage settlement process at Cummins India Limited (CIL)
To study the salient features of wage settlement agreement
To assess satisfaction level of production associates with regards to present welfare facilities provided by CIL
To recommend suggestions for improvement in welfare facilities provided by CIL
Objectives of the Study
Research Methodology
A well structured close ended questionnaire was used for data collection from the respondents. The respondents in respect production associates of the organization had been picked on the basis of random convenience sampling. The sample size of this study was 50.
To get an understanding of the wage settlement process at a glance a wage settlement process flowchart was prepared by the researcher which is as follows:
Click
Wage settlement process flowchart
Analysis of Data: The data collected has been presented in the form of tables and figures. Microsoft Office (EXCEL) was used to draw graphs, tables which were used to show the analysis of the data collected. 1. Satisfaction With The Working Conditions
Figure 1: Satisfaction with working conditions
Discussion: From figure 1 it is clear that 56% of the respondents said they were averagely satisfied with the working conditions. So there is scope for improvement in the working conditions for the production associates. The safety measures can be improved in certain areas so the production associates feel safe in the working conditions.
2. Satisfaction With Canteen Facility Provided
Table2: Satisfaction with canteen facility provided
Discussion: It is clear from Table 2 that most of the respondents (40) were satisfied with the canteen facility provided while there were a few (10) who were averagely satisfied. However, it was found out that the canteen charges are higher than others in the industry and also some infrastructure work is required like painting and change of wash basins.
3. Satisfaction With Wage Increment
Figure 3: Satisfaction with wage increment
Figure3:SatisfaDiscussion:Fromfigure 3, it is clear 45 respondents were satisfied with the wage increment while only handfuls were not. The current wage increment is enough to maintain a good standard of living for the production associates.
2. Satisfaction With Canteen Facility Provided
Table 2: Satisfaction with canteen facility provided
Discussion: It is clear from Table 2 that most of the respondents (40) were satisfied with the canteen facility provided while there were a few (10) who were averagely satisfied. However, it was found out that the canteen charges are higher than others in the industry and also some infrastructure work is required like painting and change of wash basins.
3. Satisfaction With Wage Increment
Figure 3: Satisfaction with wage increment
Discussion: From figure 3, it is clear 45 respondents were satisfied with the wage increment while only handfuls were not. The current wage increment is enough to maintain a good standard of living for the production associates.
4. Satisfaction With Allowances
Table 4: Satisfaction with allowances
Discussion: It is clear from Table 4 that a majority of 40 out of 50 respondents were satisfied with the allowances while 10 were averagely satisfied. From the interview conducted it can be concluded to increase medical allowance as prices of medicine and doctor’s services have increased.
5. Satisfaction With Retirement Benefits
Table 5: Satisfaction with retirement benefits
Discussion: From Table 5 it is clear that a majority (35/50) were satisfied with the retirement benefits. Of the averagely satisfied respondents some were elderly or the only earning member of the family. There is a little scope to increase the retirement benefits.
6. Satisfaction With Sufficient Number Of Toilets
Figure 6: Satisfaction with sufficient number of toilets
Discussion: It is clear from Table 6 that 90% (45/50) majority were satisfied with the number of toilets while 10% were not. It was observed that the reason for their dissatisfaction was that some of the departments had to go to other departments as theirs did not have a toilet.
7. Satisfaction With Creche Facility
Figure 7: Satisfaction with crèche facility
Discussion: From figure 7 it is clear that a majority of 94% (47/50) were satisfied with the crèche facility. A new crèche has been made at CIL with garden and all amenities required for the children. Only the reason for dissatisfaction for some was that if their child happened to fall ill he/she wasn’t allowed in the crèche during that period as the other children might catch it so the parent of that ill child found it difficult to manage the child without crèche.
8. Employee Welfare Activities Improves Performance
Figure 8: Employee welfare activities improves performance
Discussion: It is clear from figure 8 that majority (45/50) felt that employee welfare facilities improve their performance. So it can be concluded that as far as the production associates are happy with the welfare facilities provided their performance will be good.
9. Satisfaction With Grievance Handling Procedure
Figure 9: Satisfaction with grievance handling procedure
Discussion: It is clear from figure 9 that majority (33/50) respondents were averagely satisfied with the grievance handling procedure. Production associates said that the grievances were solved but not immediately. Timely grievance handling is required.
10. Overall Satisfaction With Employee Welfare Amenities
Figure 10: Overall satisfaction with employee welfare activities
Discussion: From figure 10 it is clear that majority (37/50) were averagely satisfied with the welfare facilities while 13 are fully satisfied. So there is scope for improvement in the welfare facilities provided like improvement in the retirement benefits, medical allowance, canteen facility, etc.
Cummins plant had a strike of 65 days in September 2009. After that industrial relations between management and union were not harmonious and cooperative but they had changed after September 2010. After the management and union signed wage agreement industrial relations have been cordial, harmonious and collaborative since 2010. Communication and meeting with union representatives and workers is there on regular basis.
Conclusions:Page1
The management representative, store managers regularly meet on weekly and monthly basis. Industrial relations manager conducts weekly meetings and resolves grievances immediately. In addition to this the senior leadership meets on monthly basis with union.
Conclusions:Page2
CEO of the company also communicates the goals of the business and situations of the business to the employees on quarterly basis. The voices of the employees are captured during these meetings and the issues/grievances are resolved as per feasibility. Line managers and shop floor managers are regularly interacting with IR Department for day to day issues of production associates and communicating the issues to IR Department for resolving.
Conclusions:Page3
In addition to that any communication related to training, safety and any audits are communicated through circulars or Lotus notes. Company believes in fair and firm communication with transparency.
Conclusions:Page4
Based on the findings of the study, recommendations by the researcher are as follows:
1.Internal management should be strong so that it can create more healthy working conditions in the organization.
Recommendations:Page1
2.The number of toilets must be increased.
3. Company should start a bus service for employees as the employee strength is large.
4. Canteen charges are higher than others in the industry and also some infrastructure work is required like painting and change of wash taps.
Recommendations:Page2
5.Medical allowance must be increased.
6.Some areas safety measures need to be improved.
7.Issues should be solved immediately by the IR department.
Recommendations:Page3
Retrieved from http://industrialrelations.naukrihub.com/ accessed on April 23rd 2013.
Handbook of Cummins India Limited.
REFERENCES