A PROJECT REPORT ON

INDUSTRIAL RELATIONS IN BHEL(VARANASI)

A report submitted in partial fulfilment of theMaster of Business Administration Programme of

KAMLA NEHRU INSTITUTE OF PHYSICAL AND SCIENCES SULTANPUR (2009-2011)

SOCIAL

SUBMITTED BY: VINITA SINGH

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ACKNOWLEDGEMENT
I am extremely thankful & indebted to the numerous BHEL executives and managerial staff who provided vital information about the functioning of their respective departments thus helping me to gain an overall idea about the working of organization. I am highly thankful for the support & guidance of each of them. I am extremely thankful to Mr. Kshitij Jain (Senior manager) for providing me the opportunity to undergo this training and to work on my project. I also express my thanks to all the members of HRD for their help & cooperation and for giving me their valuable time &helping me to grasp the concepts of industrial relation. I wish to give my sincere regards to my respected teachers who guided me to build a concrete platform before sending me on training so that I can land out firmly in all respects.My parents blessing and co-operation from entire family had been my strength to complete this study. Thanks are due to employee of the company and friends who co-operated in this work.

Thanks are also due to Mathew bhaskar singh

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VINITA SINGH MBA II nd SEM

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DECLARATION

I declare that the project report entitled INDUSTRIAL RELATIONS IN BHEL Varanasi under the guidance of Mr. Kshitij Jain (Senior manager) from 12
th of june

2010 is prepared by me as a part of partial fulfillment of the

requirement of award of MBA.

VINITA SINGH

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CONTENTS
1. PREFACE. 2. INTRODUCTION TO BHEL Varanasi Vision,Mission,and Values Corporate profile Business policy Quality policy Operating business areas BHEL-An Overview Milestones Departments

5. RESEARCH METHODOLOGY

6. OBJECTIVES OF STUDY 7. EXECUTIVE SUMMARY 8. DATA ANALYSIS &INTERPRETATIONS 9. SUGGESTIONS 10. CONCLUSION 11. LIMITATIONS 12. ANNEXURE 13. BIBLIOGRAPHY

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BHEL

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PREFACE

Summer Training constitutes an important part of a good practice Oriented management course. According to the syllabus of MBA each student of department has to go 6 week practical training in a commercial organization or industry. So on partial fulfillment of this requirement, I under went this training at BHARAT HEAVY ELECTICALS LTD. Practical training is necessary to learn as to how theoretical can be put to the practical uses. I went to the training knowing fairly well some basic principal of management and its allied out in the books are meant for ideal situation of a concern. So, much of that, at time, it seems as if they have lost their identity.

During my short stay at the organization, I had a proper visit in factory . The way in which I collected information -

1. Discussion with management and its employees

2. Interaction with workers As I was working on labour welfare activities so I focused on that and gone through site visit specially factory site I talked to labor, HR person, and collected my information from there.

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BHEL CORPORATION - AN INTRODUCTION

Employees Over 42000 (as on 1.4.09) Turnover - Rs 27505 Crores (2008-09) 14 Manufacturing divisions
GOINDWAL HARIDWAR NEW DELHI JHANSI BHOPAL BARODA NAGPUR RUDRAPUR JAGDISHPUR VARANASI

4 Power Sector regional centres 8 service centres and 18 regional offices Major Units/Divisions are Certified with ISO 9001(2000), ISO 14001 and OHSAS 18001 Continuous Profits since 1971-72 Caters to Core Sectors viz., Power, Industry, Transportation, Telecommunication, Renewable Energy etc. Manufactures over 180 products under 30 major product groups
HEEP Haridwar

PATNA

CALCUTTA

HYDERABAD BANGALORE RANIPET

TIRUCHIRAPALLY
CORPORATE OFFICE MANUFACTURING LOCATIONS SERVICE CENTRES

6/26/2010

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INTRODUCTION

BHEL is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector, today. BHEL was established more than 40 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77.

BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation, Renewable Energy, etc.

The wide network of BHEL's 14 manufacturing divisions, four Power Sector regional centers, over 100 project sites, eight service centers, 18 regional offices and one subsidiary enables the Company to promptly serve its customers and provide them with suitable products, systems and services -- efficiently and at competitive prices. The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with the technologies developed in its own R&D centers.

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BHEL has acquired certifications to Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality Management.

BHEL has Installed equipment for over 90,000 MW of power generation -- for Utilities, Captive and Industrial users. Supplied over 2,25,000 MVA transformer capacity and other equipment operating in Transmission & Distribution network up to 400 kV (AC & DC). Supplied over 25,000 Motors with Drive Control System to Power projects, Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc. Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway network. Supplied over one million Valves to Power Plants and other Industries.

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BHEL's operations are organised, around three business sectors namely Power, Industry - including Transmission, Transportation and Renewable Energy - and Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes in the market.

HUMAN RESOURCE DEVELOPMENT INSTITUTE

BHEL has envisioned becoming "A World Class

Engineering Enterprise

committed to enhancing stakeholder value". Force behind realization of this vision and the source of our competitive advantage is the energy and ideas of our 44,000 strong highly skilled and motivated people. The Human Resource Development Institute situated in NOIDA, a corner-stone of BHEL learning infrastructure, along with Advanced Technical Education Center (ATEC) in Hyderabad and the Human Resource Development Center at the manufacturing Units, through various organizational developmental efforts ensure that the prime resource of the organization the Human Capital is Always in a state of Readiness, to meet the dynamic challenges posed by a fast changing environment. It is their constant endeavor to take the HRD activities to the

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strategic level of becoming active partner to the (organizational) pursuits of achieving the organizational goals. It aims at making its employee well equipped with new technology, techniques and methods. And for this reason it organizes many training and development programmes at company level and are practiced in various other unit time to time. It organizes training for managerial, technical, top level and for labours any to analyze results judge them time to time.

BHEL IN VARANASI Heavy Equipment Repair Plant(HERP)

Varanasi is endowed with five universities, Lord Buddhas first preaching center and many religion / cultural centers, situated near the holy Ganga, with Lord Kashi Vishwanath Temple at the heart of it. HERP is located at Shivpur, 11 Kms from main railway station and 15 Kms from Varanasi Airport.

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This power belt supplies 10650 MW of power to the country. In the line with BHELs of providing constant service at their doorsteps, the idea of establishing repair shop in the vicinity of power station was mooted objective.

Accordingly, two repair plants at Bombay & Varanasi came into existence, the foundation equipment repair plant sprawling in 29.8 acre area at Varanasi was laid on 20th September 1984 by Chief Minister of U.P. Shri Narayan Dutt Tiwari within a short span of 21 month much before the schedule.

Starting a manufacturer of O&M spares for the boiler and boiler auxiliaries, repair activities got a real break in 1990 when rebabitting of TG set bearing was taken up in the plant. Since than rebabitting of different type of bearing including an unconventional synchronous condenser has been carried out to the entire satisfaction of the customers. Now HERP manufactures turbine spares, tools & tackles complete spares of bowl mill XRP 623,803,883 & 1003. The unit has a plan to add Constant load hanger, Variable load hanger & condensate polishing unit in near future.

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Through small in size, HERP has been in adequate attention to all the facts of plant operation like computerization, inventory control, quality assurance. In order to channellies the creative energy of employees suggestion scheme and quality circle and productivity improvement project are in operation.

HERP takes pride in being one of the best among BHEL unit in term of value added per employee. it has a track reward of continuing harmonious industrial relations. Being a public sector, HERP is aware of social responsibility as a corporate citizen as quality of like for the residents of near by area.

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VISION:
To become a continuously growing world class company. To harness the growth potential & sustain profitable growth. To deliver high quality & cost competitive products & to be the first choice of customers. Create an inspiring work environment to unleash the creative energy of people. Achieve excellence in enterprise management. Be a respected corporate citizen, ensure clean & green environment & develop vibrant communities.

MISSION:
To be an Indian Multinational Engineering Enterprise providing Total Business Solution through Quality Products, Systems and Services in the fields of Energy, Industry, Transportation, Infrastructure and other potential areas

VALUES
Commitment Customer satisfaction Continuous improvement Concern for environment Creativity & innovation Page 15

BUSINESS POLICY

In-line with company's vision, mission and values, we dedicate ourselves to sustained growth with increasing positive economic value addition, customer focused Business Leadership and welfare of society.

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QUALITY POLICY

In its quest to be World-class, BHEL pursues Continual Improvement in the Quality of its Products, Services and Performance leading to Total Customer Satisfaction and Business Growth, through dedication, commitment and team work of all employees.

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Achievements

BHEL has put in place a number of initiatives, as follows, . 1. Strengthening companys core businesses of Power Generation, Transmission & Distribution, Transportation and Industrial Systems & Products, through accelerated project completion and consequent benefits to customers, along with new initiatives in marketing, technology, facility up-gradation and modernization, enhancing

operational effectiveness etc. i. . 2. Business Development efforts in related and allied areas utilizing the organizational strengths and forming customer focused specialized business groups e.g. formation of Oil Sector R&M Business Group to address business in Renovation and Modernization of off-shore and onshore oil platforms, downstream petroleum refining areas and Power Plant Operational Services Group to provide Operations and

Maintenance (O&M), Services for Power Plants.

3. After Market Services being the areas for future growth, spares and R&M services business have been integrated into one focused group.

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R&M for hydro sets is an area having major growth opportunity which BHEL is poised to tap. . 4. Exploring Business opportunities in areas like Energy Conservation, Water Management, Pollution Control and Waste Management, Ports, LNG terminals etc.

5. Positioning for Information technology Business leveraging the domain knowledge in Power Sector& Engineering field to provide IT enabled services for Power Sector and software services for Engineering Industry.

Sustain and Enhance Exports for products and services through multipronged approaches like entering new territories, focus on product sales, entry into IPP

Products

Thermal Power Plants

Steam turbines, boilers and generators of up to 800 MW capacity for utility and combined-cycle applications; Capacity to manufacture boilers and steam turbines with supercritical system cycle parameter and matching generator up to 1000 MW unit size.

Steam turbines, boilers and generators of CPP applications; capacity to manufacture

condensing, extraction, back pressure, injection or any combination of these types of steam turbines. Page 20

Nuclear Power Plants Steam generator & Turbine generator up to 700 MW capacity.

Gas-Based Power Plants

Gas turbines of up to 280 MW (ISO) advance class rating. Gas turbine-based co-generation and combined-cycle systems of industry and utility applications.

There are other products given as follows: Hydro Power Plants

DG Power Plants Industrial Sets Boiler Boiler Auxiliaries Piping System Heat Exchangers and Pressure Vessels Pumps Power Station Control Equipment Switchgear Bus Ducts Page 21

Transformers Insulators Industrial and Special Ceramics Capacitors Electrical Machines Compressors Control Gear Silicon Rectifiers Thyristor GTO/IGBT Equipment Power Devices Transportation Equipment Oil Field Equipment Casting and Forgings Seamless Steel Tubes Distributed Power Generation and Small Hydro Plants Systems and Services

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BHEL at a glance

(Rs in Millions) 2007-08 Orders Received Orders Outstanding Turnover Value added Employee (Nos.) Profit before tax Profit after tax Dividend Dividend tax Retained earnings Total assets Net worth Total borrowings Debt: equity Per share (in Rupees) Page 23 50270 85200 21401 8323 43636 4430 2859 746 127 1986 29352 10774 95 0.01 2006-07 35643 55000 18739 7182 42124 3736 2415 600 93 1722 22280 8788 89 0.01 CHANGE (%) 41.0 54.9 14.2 15.9 3.6 18.6 18.4 24.4 36.8 15.3 31.7 22.6 6.3 0.0

Net worth Earnings Economic value added

220.1 58.4 1810

179.5 49.3 1657

22.6 18.4 9.2

TURNOVER
25000 Rs(Million) 20000 15000 10000 5000 0 2004-05 2005-06 2006-07 2007-08 YEAR

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VALUE ADDED
60000 50000 40000 Rs. in million 30000 20000 10000 0 2004-05 2005-06 2006-07 YEAR 2007-08 2008-09

NET WORTH PER SHARE

400 350 300 250 RUPEES200 150 100 50 0 2004-05 2005-06 2006-07 YEAR 2007-08 2008-09

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EARNINGS PER SHARE

100 90 80 70 60 RUPEES 50 40 30 20 10 0

200405

200506

200607

200708

200809

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RESEARCH METHODOOGY
Meaning and objective:
Research simply means a search for fact- answer to question and solution to problem. It is purposive investigation, it is an organised inquiry. It seeks to find explanation to unexplained phenomenon to clarify the doubtful fact and to correct the misconceived fact. The objective of my research is to know about the INDUSTRIAL RELATION in any particular organisation and how they are helpful for the workers and management. The reason for choosing BHEL is very simple BHEL is successful pubic sector undertaking (psu) which employed large workers and have many trade unions (7 in case of BHEL). If we talk about the data used during the research, there are two types of data(1) PRIMARY DATA (2) SECONDARY DATA

The data collected by taking opinion of the employees with the help of questionnaire and discussion is primary data and the data taken from the manuals of BHEL is secondary data. Both types of data were adequate, efficient and qualitative. There is no doubt that secondary data is mostly used in the file.

SIZE OF SAMPLE:
As we know that the study is based on the sample size so having this point in mind, I have determined the sample size of 100 employees. One questionnaire

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was given to every employee and after discussion and taking their opinion; I have analyzed them carefully with aid of my guides and concluded the result.

. SURVEY WORK: The information regarding the functioning of trade unions is obtained from almost every department of organisation Data is collected in three ways:1. Interview and Discussion 2. Observation. 3. Questionnaires INTERVIEWS AND DISCUSSION:
Unstructured interview was conducted with HR officer. During the interview question were asked about trade unions and discussion were made regarding theeffective implementation in BHEL. At the time of filling questionnaire some question were also asked respondent to obtain insight about the organisation .

OBSERVATION:
Second step for collecting data is observation. At the time of field survey, observation were made at there natural setting, employees were being observed therefore, observation were under taking in every realistic conditions.

QUESTIONNAIRE:
The third steps for collecting the data are structured questionnaire consist of a set of question presented to a respondent for his response.

A structured questionnaire is one were the listing of question was in a pre-arranged order and were the object of inquiry was revealed to the respondent.
The form of question was used in questionnaire such as ended question dichotomous question. The present work is based on the open-ended question.

DATA PROCESSING:
In the last step, collected data have been presented in the form of table, which has been analysed subsequently below the table. This analysis finally helped in drawing conclusion and making suggestion.

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OBJECTIVE OF THE STUDY

The main objective of the project INDUSTRIAL RELATIONSHIP inB.H.E.L. Varanasi is to know the philosophy of trade unionism in B.H.E.L. which maintains sound and spontaneous relationship between management and workers. It also designed to:1. To know how they provide mechanism to safeguard interest of the workers. 2. To know whether any kind of training programmes organized by the trade unions for workers development. 3. To know that what extent they are aware of factories act and labour laws. 4. To know about militant/negative activities of the trade union. 5. To know about the political effect on the trade union. 6. To know good or bad effect of more number of trade union in B.H.E.L. 7. To know the role of the trade union in the organization. 8. To know how management deal with the trade union.

EXECUTIVE SUMMARY
The relationship between Employer and employee or trade unions is called Industrial Relation. Harmonious relationship is necessary for both employers and employees to safeguard the interests of the both the parties of the production. In order to maintain good relationship with the employees, the main functions of every organization should avoid any dispute with them or settle it as early as possible so as to ensure industrial peace and higher productivity. Personnel management is mainly concerned with the human relation in industry because the main theme of personnel management is to get the work done by the human power and it fails in its objectives if good industrial relation is maintained. In other words good Industrial Relation means industrial peace which is necessary for better and higher productions. Definition:i. Industrial Relation is that part of management which is concerned with the manpower of the enterprise whether machine operator, skilled worker or manager. BETHEL, SMITH & GROUP ii. Industrial Relation is a relation between employer and employees, employees and employees and employees and trade unions. - Industrial dispute Act 1947
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iii. While moving from jungle of the definitions, here, Industrial Relation is viewed as the process by which people and their organizations interact at the place of work to establish the terms and conditions of employment. The Industrial Relation relations also called as labor - management, employeeemployers relations.

A few notable features pertaining to Industrial Relations are as under: 1. Industrial Relation do not emerge in vacuum they are born of employment relationship in an industrial setting. Without the existence of the two parties, i.e. labor and management, this relationship cannot exist. It is the industry, which provides the environment for industrial relations. 2. Industrial Relation are characterized by both conflict and co-operations. This is the basis of adverse relationship. So the focus of Industrial Relations in on the study of the attitudes, relationships, practices and procedure developed by the contending parties to resolve or at least minimize conflicts. 3. As the labor and management do not operate in isolations but are parts of large system, so the study of Industrial Relation also includes vital environment issues like technology of the workplace, countrys socio-economic and political environment, nations labor policy, attitude of trade unions workers and employers. 4. Industrial Relation also involve the study of conditions conductive to the labor, managements co-operations as well as the practices and procedures required to elicit the desired co-operation from both the parties. 5. Industrial Relations also study the laws, rules regulations agreements, awards of courts, customs and traditions, as well as policy framework laid down by the governments for eliciting co-operations between labor and management. Besides this, it makes an in-depth analysis of the interference patterns of the executive and judiciary in the regulations of labormanagements relations. In fact the concepts of Industrial Relations are very broad-based, drawing heavily from a variety of discipline like social sciences, humanities, behavioral sciences, laws etc.

In fact, Industrial Relation encompasses all such factors that influence behavior
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of people at work. A few such important factors are details below: 1. Institution: It includes government, employers, trade unions, unions federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems. 2. Characters : It aims to study the role of workers unions and employers federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor court, tribunal etc. 3. Methods : Focus on collective bargaining, workers participation in the Industrial Relation schemes, discipline procedure, grievance re-dressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protests through methods like revisions of existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc. 4. Contents : Includes matter pertaining to employment conditions like pay, hours of works, leave with wages, health, and safety disciplinary actions, layoff, dismissals retirements etc., laws relating to such activities, regulations governing labor welfare, social security, industrial relations, issues concerning with workers participation in management, collective bargaining, etc.

Objectives of Industrial Relation A. To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production. B. To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country. C. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism. D. To establish and nurse the growth of an Industrial Democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well. E. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits. F. To establish government control of such plants and units as are running at a loss or in which productions has to be regulated in the public interest.
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G. Improvements in the economic conditions of workers in the existing state of industrial managements and political government. H. Control exercised by the state over industrial undertaking with a view to regulating production and promoting harmonious industrial relations. I. Socializations or rationalization of industries by making he state itself a major employer J. Vesting of a proprietary interest of the workers in the industries in which they are employed.

The main aspect of Industrial Relations are :i. Labor Relations, i.e. relations between union and management. ii. Employer-employees relations, i.e. relations between management and employees. iii. Group relations, i.e. relations between various groups of workmen. iv. Community or Public relations, i.e. relations between industry and society. v. Promotions and development of healthy labor-managements relations. vi. Maintenance of industrial peace and avoidance of industrial strife vii. Development of true industrial Democracy.

IMPORTANCE OF INDUSTRIAL RELATIONS: The healthy industrial relations are key to the progress. Their significance may be discussed as under 1. Uninterrupted production The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption. 2. Reduction in Industrial Disputes Good industrial relation reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production.
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3. High morale Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results. 4. Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employers authority. It will naturally have impact on production because they recognize the interest of each other. 5. New Programmes New programmes for workers development are introduced in an atmosphere of peace such as training facilities, labor welfare facilities etc. It increases the efficiency of workers resulting in higher and better production at lower costs. 6. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected. Thus, from the above discussion, it is evident that good industrial relation is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social just INDUSTRIAL RELATION IN B.H.E.L., Varanasi B.H.E.L. Varanasi is one of the production unit which is achieving success in every sphere of power sector and locomotives.
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The credit goes to both the management and workers. In Varanasi unit, the industrial relation between the ice are to be achieved, there must be harmonious relationship between management and labor.. management and trade unions are very sound i.e. very good industrial relations. In Varanasi unit the healthy labour-management relation develops due to following condition:(1)In BHEL Varanasi, the existence of strong, well-organized, democratic and responsible trade unions and associations of employer. These organizations enhances job security of employees, help in increased workers participation in management and give labour a dignified role in a society. These associations in BHEL Jhansi also tend to create vantage ground for negotiation, consultations and discussions on a mutual basis which ultimately lead to good labourmanagement relationship. (2) The spirit of collective bargaining and willingness to take recourse to voluntary arbitration. The collective bargaining recognizes equality of status between the two conflicting groups and prepares the ground in an atmosphere of trust and good will for discussions, consultations and negations on matters of common interest to both industry and labour. BHEL Varanasi the collective bargaining, plant discipline and union relation are the principle items which form the core of industrial relations. (3)Besides all these, welfare works whether statutory or non-statutory, provided by the BHEL MANAGEMENT. Trade-unions and employers create, maintain and improve labour-management relations. IN BHEL Varanasi,INDUSTRIAL DEMOCRACY exists in which labour have the right to be associated with the management which is an important factor in this plant for maintaining very good industrial relation. The main councils and committees which exist in BHEL,JHANSI are1. PLANT COUNCIL. 2. SHOP COUNCIL 1(Production transformer & PPC
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. SHOP COUNCIL 2 ( Loco PPC, BUSDUCT & FBM) 4. SHOP COUNCIL- 3 ( Design, Productivity & Main store, FCX) There are nine committee exist in BHEL Varanasi. They are1. NATIONAL FESTIVAL ORGANIZES COMMITTEE. 2. CULTURAL COMMITTEE 3. PROVIDENT FUND COMMITTEE 4. SAFETY COMMITTEE 5. CANTEEN COMMITTEE 6.MEDICAL COMMITTEE 7. TOWNSHIP COMMITTEE 8. BHEL EDUCATION COMMITTEE 9. SPORTS AND WELFARE COMMITTEE The trade unions members become the part of such committees STYLE OF MANAGEMENT IN BHEL Varanasi:Every the industry believe to sound i.e. very good relationship with the workers through trade-unions as medium so was the case in BHEL, Varanasi . In BHEL Varanasi, participative style is adopted by the BHEL management. Under this type, labour is treated on an equal footing by management i.e. neither as a commodity nor as a child but as an ally and a friend, even a partner in the joint endeavor of improving the efficiency and productivity of the enterprise. Very sound personal policies are adopted by the BHEL Varanasi management so that very good industrial relation is maintained in the industry and plant go on the path of productivity and success. Statuary and non-statuary welfare in the workers favours are provided and supported by the BHEL management.
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Besides all this, BHEL management had provided white passes, telephone connections. Mobile connection, space for office, furniture for the trade-unions so that good industrial relation being maintained. As a social responsibility, BHEL management had adopted a nearby village providing primary level education and facilities for the factor which maintained good relation with the trade-unions. BHEL management always supports the fair, democratic and free trade union election in Varanasi unit which maintains very good Industrial relations.

TRADE-UNIONS IN B.H.E.L., Varanasi

1.BHEL SHARAMIK SANGH(BMS)It is an active union from the establishment of Jhansi unit BHEL. Sharamik sangh is very influence from the starting years of foundation in 1975 elections. It was placed at IInd position & emerged as strong opposition union. In initial era of its emergence one representative of BMS got the opportunity to represent the joint committee and also got the chance to took to management. BMS representative above got the opportunity to represent the different committees. In July 2002 JCM election, BMS secured the highest vote stood at first position which is 33.62% of total votes. As it is secured more than 10% vote it got the chance to represent the joint committee & councils. BHEL sharmik sangh affiliated with BMS (Bhartiya Mazdoor Sangh). 2. BHARAT HEAVY ELECTRICALS MAZDOOR UNION Varanasi (CITU)It is also active from the initial years of foundation but it is not much effective among workers. In recent years it gained popularity among the workers through maintaining deep personal relationship with workers to improve their living standard. In 2002, JCM elections it secured 20.10% vote & placed at IInd
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position CITU has the right to talk to most & it is affiliated with CITU(CENTER OF INDIAN TRADE UNION). 2. HEAVY ELECTRICALS SHRAMIK TRADE UNIONS(HMS)After the establishment of Varanasi unit, there were five- trade unions which are active, heavy trade unions is one of these. If we go through the study of history of heavy electrical shramik trade unions, it was not influence in organization. But after 1985 when it stake its struggle against management for the safe guards among workers eventually it emerged as a strong unions in 1997 elections and gained IInd position. But it didnt retain its position so as. 4. BHEL KARAMCHARI UNIONIt is newly born union in BHEL. It is existing in unit from last seven years basically it is originated from the personal differences of INTUC which was pertaining to leadership of union (INTUC). In 2002 election it emerged as new rising stars & placed 4th position among seven union WELFARE FACILITIES Welfare service may broadly be classified into two categories:1. Intramural activities as rest centers, canteens, uniforms, library, medical aid, subsidized food, and shift allowance etc. 2. Extramural activities which are undertaken outside the establishment such as family planning, child welfare, cooperative stores, credit societies, vocational guidance, holiday homes, leave travel facilities, transport to and from the place of work etc. Labour welfare work may also be divided in to two categories:1. Statutory welfare work comprising the legal provisions in various pieces of labour legislation. 2. Voluntary welfare work includes those activities, which are undertaken by employers for their workers voluntarily. Many employers now a day offers the following welfare amenities

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Voluntarily WELFARE FACILITIES Welfare service may broadly be classified into two categories:1. Intramural activities as rest centers, canteens, uniforms, library, medical aid, subsidized food, and shift allowance etc. 2. Extramural activities which are undertaken outside the establishment such as family planning, child welfare, cooperative stores, credit societies, vocational guidance, holiday homes, leave travel facilities, transport to and from the place of work etc. Labour welfare work may also be divided in to two categories:1. Statutory welfare work comprising the legal provisions in various pieces of labour legislation. 2. Voluntary welfare work includes those activities, which are undertaken by employers for their workers voluntarily. Many employers now a day offers the following welfare amenities voluntarily. Statutory Employees Welfare Provision Employers are required to offer welfare facilities to workers under different labour laws. These are given below: The Factories Act 1948 This act provides the following services to worker: Washing facilities to male and female workers separately. Facilities for storing and during clothes.

Facilities for occasional rest for workers who work in a standing position for long hours. First aid boxes or cup boards one for every 150 workers and the ambulance facilities if there are more than 500 workers. Canteens, where there are more than 250 workers. Shelters, rest rooms and lunchrooms where over 150 workers are employed. Creche, if 30 or more workers are employed. Welfare officer, if 500 or more workers are employed Non-Statutory Employees Welfare (1) Education: A scheme of workers education was envisaged on all India bases by the government of India, way back in 1957.
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The scheme had four main objectives. To develop strong unions through trained officials and more enlightened members. To develop leadership from the rank and file. To equip organised labour to take its place in 9 democratic societies and discharge its social and economic function. To promote among workers a greater understanding of the problems of their economic environment and their privileges and obligations as unions members and official and as citizen. After assessing the scheme the National Commission on labour, 1969 (NCL) felt that scheme is not perfect and requires improvement. The committee on labour welfare 1969 recommended that trade unions should assume on active role in educating workers and run school for promoting literacy among the children of workers. To be effective the programme of workers education should be formulated administered and implemented by the trade union themselves. (2)Transportation: The committee on labour welfare 1969, recommended the provision of transport facilities to workers so that they can reach the work place punctually and comfortable, most employers have, how even recognised the workers need for transport services and therefore responded favourably by providing company owned/leased vehicles to workers in major industrial centersespecially in the private sector. They have also come out with innovative financing schemes in recent times enabling workers to buy their own bicycle, scooters, motorcycle etc. (3)Housing: Housing is the primary need of a family in civilized life without of roof to cover his head, the worker naturally feels frustrated about his poor standard of living in big cities. Good houses mean possibility of home life happiness and health; bad houses spell squalor, drink, diseases, immorality crime etc. Overcrowding of people in dark quarter in slum areas is mainly responsible for the outbreak of tuberculosis. According to Radha Kamal Mukherjee In the thousand slums of the industrial centres, manhood is unquestiable brutalised womanhood dishonoured and childhood poisoned at its very source. Recognising the need for housing accommodation. An industrial housing scheme was introduced in 1952. Under this scheme the central government offers loans to industrial workers for constructing houses at confessional rates. The low-income group- housing scheme (1954) subsidized housing scheme for economically weaker section of society (1952). Rural house site-cum-hut construction scheme for landless workers (1972) has been introduced to reduce the housing shortage to workers. The government has
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also introduced housing scheme for winners and plantation workers in early 50s. Housing scheme for dockworkers was drawn up in 1964. To reduce shortage of housing units in major industrial centers the central government must extend its helping hand in a big way. Employers and housing finance institution must also join hand to improve the lot of workers. The problem of housing in India is of such a nasty climenslon that no single agency can reasonably be expected to solve it. Other facilities: Other amenities such as washing facilities, drinking water provision of first aid box, rest room, canteens, recreation centres have more or less, because statutory obligation of employers now a days. Consumer cooperative societies have also been flooded in various units to meet the credit needs of industrial workers. Employers: Enlightened employers like TISCO, Hindustan lever, Godrej, L&T Siemens, Voltas, Philips, HMTY, LIC, and B.H.E.L.have undertaken welfare activities in the interest of workers. The management of TISCO runs a well-equipped hospital in Jamshedpur, supported by health centers and dispensaries in different residential gymnasiums. Clubs, & school are also set up by TISCO for the benefit of workers. Employers association have also joined hand with employers in doing some welfare work for their workers. The Indian jute mill Association, The Bombay mill owner Association are worth mentioning here medical educational recreation facilities are also extended in paper, sugar, steel, engineering industries also by the employers to employers association.

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WORKMEN

1. What are the usual problems faced by you? a. b. c. d. e. Working conditions No guidance Benefits Working conditions All

PROBLEMS FACED

20% NO PROBLEMS PROBLEMS RELATED TO WORKING CONDITIONS PROBLEMS RELATED TO WORK TIMINGS

55% 25%

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It is clearly seen from the pie chart that more than half of the workmen i.e. 55% face no problems while working in BHEL. They are very much satisfied with their working conditions, the guidance which they get from their supervisors, their work timings, the benefits which they are getting etc. But, 25% of the workmen have grievances related to working conditions and 20% of them are not happy with their work timings. The workmen not happy with their working conditions face problems with the noise levels in the shop floor where they work as well as with the temperature which is usually high and they are not provided with any alternative to overcome this problem. Some of the workmen who work in the factory area are not happy with their work timings as they need to attend irregular shifts and at times they need to work beyond the regular timings.

2. What are the usual problems faced by you? aWorking condition b.No guidance
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c.Benefits d.Working conditions e.All

PROBLEMS FACED

20% NO PROBLEMS PROBLEMS RELATED TO WORKING CONDITIONS PROBLEMS RELATED TO WORK TIMINGS

55% 25%

It is clearly seen from the pie chart that more than half of the workmen i.e. 55% face no problems while working in BHEL. They are very much satisfied with their working conditions, the guidance which they get from their supervisors, their work timings, the benefits which they are getting etc. But, 25% of the workmen have grievances related to working conditions and 20% of them are not happy with their work timings. The workmen not happy with their working conditions face problems with the noise levels in the shop floor where they work as well as with the temperature which is usually high and they are not provided with any alternative to overcome this problem.
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Some of the workmen who work in the factory area are not happy with their work timings as they need to attend irregular shifts and at times they need to work beyond the regular timings.

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3. How do you try to resolve it ?

a. b. c. d.

On your own By consulting your immediate superior With the help of the Union All

APPROACH TO SOLVE THE PROBLEMS

10%

CONSULT IMMEDIATE SUPERIORS CONSULT UNION LEADER

90%

As is clear from the pie chart that whenever the workmen come across any problem during their work, most of them try to consult their immediate superior only to solve their problems but there seems to be a few constituting about 10% which directly consults their union leader in order to solve their problems. This is so because they find it more easier and reliable way to meet their grievances .
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4. Are you satisfied with the wages you are paid? a. Yes
b.

No WAGE SATISFACTION

20%

SATISFIED NOT SATISFIED

80%

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As we can see from the chart, 80% of the workmen say that they are satisfied with their wages but 20% of the workmen are still not satisfied with their wages and these include those who have a big family and they are not able to meet their needs properly. Moreover with the present situation of rising prices, they expect a hike in their wages to meet their needs.

5. Does it really return the worth you are provided to the organization? a. Yes
b.

No

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WAGES COMPLEMENTING THEIR WORK

10% FEEL THAT THEY ARE NOT BEING PAID ACCORDING TO THEIR WORK FEEL THAT THEY ARE BEING PAID ACCORDING TO THEIR WORK 90%

Here, we can see the satisfaction levels among the workmen, as 90% of them assert that they are being paid according to their work and not being underpaid. This means that they are being paid in proportion to the service they are providing to the organisation and not being made to work more and pay less. But 10% of the workmen still feel that are not being paid according to their work and they should be paid more than what they are being paid now. This is because they feel that they are putting more physical labour as compared to the workmen who are getting same wage with a comparative less physical effort

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6. Is your working environment safe? a. Yes

b.

No SAFETY OF WORKING ENVIRONMENT

40% SAFE NOT SAFE 60%

When asked about the safety of the working environment, a noticeable difference was found in the response given by the workers. Around 60% of the workmen say that the working environment of BHEL is very safe. The remaining 40% of the workmen say that the working environment is unsafe. The 40% of the workmen mostly belong to the factory areas, security department, building department etc. They feel it to be unsafe as they get exposed to different kinds of toxic gases, metal dusts and smoke and even had to work with heavy machinery, volatile agents, hazardous materials, hand and portable power tools, welding, cutting and brazing tools and electrical tolls.
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7. Are you being provided with modern production techniques? a. Yes b. No

PROVISION OF MODERNISED EQUIPMENTS AND MACHINES

45% 55%

BEING PROVIDED NOT BEING PROVIDED

When asked the workmen whether they are provided with modern production techniques, a demarcating response was seen to be found. Around 45% of the workmen say that they are being provided with modernised equipments and machines but surprisingly more than half of the workmen, constituting around 55% say that they are not being provided with modern production techniques. This is due to the fact that some of the units were having the modern production techniques but some units were not. The units like Heat Exchangers and
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Fabrications, Pulverisers etc. do not require modernised machinery whereas the units like Gas turbines, Steam turbines, Grinding etc. essentially require the latest equipment and machinery.

SUPERVISORS 1. What are the usual problems faced by you? a. Work Schedule b. Benefits c. Union interference in decision making d. Working conditions e. Disciplinary action f. All

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PROBLEMS FACED
7% 21% 29% WORK SCHEDULE BENEFITS UNION INTERFERNECE WORKING CONDITIONS 29% 14% DISCIPLINE

As can be seen from the pie chart, varied answers were collected when the supervisors were asked about the usual problems they face while working. 10% of them are not satisfied with their work schedule as sometimes they need to stay beyond the working hours. At times they also need to work in different shifts. 40% of them are not satisfied with the benefits they are getting. 20% of the supervisors face problem with the union interference in the decisionmaking. Under the pressure of the union, they are unable to implement in time the decisions made by their executives and immediate superiors. After negotiations with the union, after remaking the decisions by the management, they are implemented 40% of the supervisors are not happy with their working conditions as they have to work in a noisy area with high temperature too. Some of them have to work in very small work areas too. These grievances are of the supervisors who work in the shop floor.
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2. How do you try to resolve it? a. On your own b. By consulting your immediate superior c. With the help of the Union d. All

RESOLVE PROBLEMS

30% ON THEIR OWN BY CONSULTING THEIR SUPERIORS 70%

When the supervisors are asked about their approach in resolving the problems, 30% of them say that they try to do it on their own and 70% prefer consulting their superior rather than resolving the problems on their own. Both the set of the employees approach the association as the final alternate to solve the problems.

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3. Are you satisfied with your salary? a. Yes b. No

SALARY SATISFACTION

50%

50%

SATISFIED NOT SATISFIED

As far as salary is concerned, from the survey, it is found that there is an equal division of the satisfaction level among the supervisors.
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50% of the supervisors are satisfied with their salary and the rest 50% are not satisfied with it. This is due to their mode of jobs, working conditions, hectic work schedules and pressurised works.

4. Does your salary complement your work content? a. Yes b. No

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SALARY COMPLEMENTING THEIR WORK

40%

FEEL THAT THEY ARE PAID ACCORDING TO THEIR WORK 60% FEEL THAT THEY ARE NOT PAID ACCORDING TO THEIR WORK

As can be seen from the pie chart, 60% of the supervisors feel that they are being paid according to their work content but 40% of the supervisors feel that they are not being paid according to their work content and that they should be paid more. This shows that satisfaction level among these 40% supervisors regarding their salary is quite low. The supervisors of this set mostly belong to the shop floors where production works take place. Their satisfaction levels are purely based on their work environment, conditions, their mode of job etc.

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5. Are you satisfied with your promotional scheme? a. Yes b. To some extent c. No

SATISFACTION WITH PROMOTIONAL SCHEME

30% SATISFIED TO SOME EXTENT 0% 70% NOT SATISFIED

When the supervisors were enquired about the promotional scheme, 30% were satisfied to some extent but there constituted 70% of them who are not satisfied at all with the present promotional scheme. They had a grievance that they are not provided enough opportunities to get promoted. Comparing the three categories of employees-workmen, supervisors and executives, the promotions for the supervisors lack the pace.

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6. Are you happy with the work timings? a. Yes b. No

SATISFACTION WITH WORK TIMINGS

SATISFIED

100%

Work timings seem to be very much suitable for all the supervisors as 100% of them are satisfied as can be seen from the pie chart. Shift system is followed in BHEL. Morning shift begins from 6.30a.m. and ends at 3.30p.m. Evening shift begins from 3.30p.m. and continues till 11.30p.m. Each of the supervisors has to work in one shift continuously for a week and

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then in the other shift for the second week and this continues. Hence the supervisors find it quite convenient to work with.

7. Do you think flexi timings are required? a. Yes b. No

REQUIREMENT OF FLEXI TIMINGS

50%

50%

REQUIRE DONT REQUIRE

As far as flexi timings are concerned there is a mixed view of the supervisors where 50% of them want flexible work timings and the rest 50% do not think it is required.
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They are liable to work for 48 hours a week and so at times of emergency for personal affairs the implementation of flexible timings would allow the needy supervisors to take leave from work with pay and can compensate that work by working extra some other day within the 48 hours of that week. 50% of the supervisors did not appreciate this concept and felt it to be of no use as they are provided with a good leave policy which can be utilized when needed.

EXECUTIVES 1. What are the usual problems faced by you? a) b) c) d) e) f) Work schedule Benefits Union interference in decision making Working conditions Disciplinary action All

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PROBLEMS FACED
6% 13% BENEFITS 31% 19% UNION INTERFERENCE WORKING CONDITIONS DISCIPLINE ALL THE ABOVE

31%

As can be seen from the pie chart the usual problems which the executives face while working gives varied answers. 20% of them are not satisfied with their benefits.30% faces problem with union interference.50% are not happy with their working condition.50% are not finding proper discipline as they say that people working under them are not always following the rules.10% executives are there who are not satisfied and have grievances regarding work schedule, benefits they are receiving, union interference in decision making, working condition and discipline.

2. How do you try to resolve them? a. b. On your own By consulting your immediate superior
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c. d.

With the help of the Union All RESOLVING PROBLEMS

25% ON THEIR OWN BY CONSULTING THEIR SUPERIORS 75%

When enquired about how these executives try to resolve their work problems, a result came where it was found that 30% of them try to do it on their own and 90% prefer going to their superior for solving their problems and it includes the ones who tries to do it on their own as well.

3. Are you satisfied with your salary? a. Yes

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b.

No SALARY SATISFACTION

20%

SATISFIED NOT SATISFIED

80%

As far as satisfaction with salary is concerned, 80% of the executives are satisfied with the salary they get but the rest 20% are still not satisfied with their salary. This 20% of the executives include those who work in the shop floor. They do expect a hike in their salary because of their mode of jobs, working conditions, hectic work schedules and pressurised works.

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4. Does your salary complement your work content? a. b. Yes No

SALARY COMPLEMENTING THEIR WORK

BEING PAID ACCORDING TO THE WORK THEY DO

100%

Surprisingly, it was found that the executives accept that they are being paid according to their work and are not being made to do work more than they are actually paid in spite of the fact that there are a few who still expect a hike in salary.

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5. Are you satisfied with your promotional scheme? a. Yes b. To some extent c. No SATISFACTION WITH PROMOTIONAL SCHEME

SATISFIED

100%

As far as promotional scheme is concerned, executives show a 100% satisfaction level as they say that they are being promoted according to their work performance majorly which is very much fair and satisfactory for them. A four-year promotion scheme is followed in BHEL, where for every four years, the executives are promoted from their present cadre to immediate higher cadre.
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6. Are you happy with the work timings? a) b) Yes No SATISFACTION WITH WORK TIMINGS

SATISFIED

100%

Work timings also have shown a 100% satisfaction among the executives. They are very much satisfied as the timings are convenient for them. Shift system is

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followed in BHEL, where the morning shift begins from 6.45 a.m. and ends at 3.30 p.m. and the noon shift starts from 3.30p.m. till 11:30 p.m.

SUGGESTIONS
B.H.E.L. Varanasi a very good Industrial relationship is maintained between trade union and management. Although trade union in B.H.E.L. Varanasi are well disciplined and workers well framed oriented but still there is some lapses in trade unions policies which make workers discontented. So for the purpose of removing all those weaknesses and lapses and to maintain good industrial relations management and workers themselves give few suggestions to the trade union leader and members during the survey, which are:1. Apathetic attitude of trade union towards work and workers create the climate of unrest and annoyance. So it is needed that they must devoted and dedicated them towards work so as to increase the productivity and profitability of the organization. 2. Trade union must organized training programme for workers which can increase their level of awareness and develop them for more advance technology. 3. Most of the workers believe that management and trade union both is the chip of the same block. They all are involved in personal satisfaction and not a bit concerned about workers so they must create the climate of believe and faithfulness among the workers. 4. Personal benefits by the union leader should be abolished. By following all the suggestion trade union may prove productive for the organization which directly or indirectly benefited the industry, nation and more that is benefited to humanity. In this way, a very HEALTHY INDUSTRIAL RELATIONSHIP is maintained between workers (trade
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union) and management in B.H.E.L. Varanasi.

CONCLUSION
After analysis every aspect by the data obtained through personal interview questionnaires, the main substance that is extracted is that a very healthy industrial relationship is maintaining between the trade unions and management in B.H.E.L. Varanasi. Trade unions are essential part of the organization, without the mediation of trade union management cant communicate with the workers properly because trade unions are close to the workers so they can easily interact with them, can understand their problems in better manner. In case of the BHEL all the seven trade unions believes in peaceful table talk none of them involves in any kind of destruction negative activities. Although workers are not fully satisfied with the trade unions polices but still they consider that unions play important role in the organization for their welfare. Trade union act as bargainers for demanding the fair wages from management for them and also act as enemies if they find that management is trying to exploit the workers. To achieve their objective, trade union may employ a variety of meansthe means depend upon the attitude of the management regarding the matter. On the other hand, participative type of management occurs in B.H.E.L. Jhansi. Under this type, labour is treated as equal footing by the management that is neither as a commodity nor as a child but as an ally and a friend, even a partner in the joint endeavour of improving the efficiency and productivity of the enterprise. Every police which is made by the management has got the full support of the trade union which was in power. Management also accept the importance of the trade union in an enterprise.

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LIMITATIONS

1. TIME FACTOR: The study has been completed during a short period .so it was not possible to study the problems well in details. 2. NON AVAILABILITY: Non availability of the right persons creates the problem in getting right and accurate information.

3. REGION FACTOR : Region factor was also problem only executives of personnel department were chosen for collecting the information .

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ANNEXURE

QUESTIONNAIRE

WORKMEN

1.

What are the usual problems faced by you?

a.Working conditions b.No guidance c.Benefits d.Working conditions e.All 2. What are the usual problems faced by you?

a. condition b.No guidance c.Benefits d.Working conditions

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3. How do you try to resolve it ? a.On your own b.By consulting your immediate superior c.With the help of the Union d.All

4. Are you satisfied with the wages you are paid? a. Yes b. No

5. Does it really return the worth you are provided to the organization? a. Yes b. No

6. Is your working environment safe? a.Yes b.No

7. Are you being provided with modern production techniques? a.Yes b.No SUPERVISORS

1.What are the usual problems faced by you?

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a.Work Schedule b.Benefits c.Union interference in decision making d.Working conditions e.Disciplinary action f.All

2.

How do you try to resolve it?

a.On your own b.By consulting your immediate superior c.With the help of the Union d.All

3.Are you satisfied with your salary? a.Yes b.No

4.Does your salary complement your work content? a.Yes b.No 5.Are you satisfied with your promotional scheme? a. Yes b.To some extent c . No 6.Are you happy with the work timings? a. Yes b. No Page 73

7. Do you think flexi timings are required? a. Yes b. No

EXECUTIVES

1. What are the usual problems faced by you? a.Work schedule b.Benefits c.Union interference in decision making d.Working conditions e.Disciplinary action f.All 2. How do you try to resolve them? a.On your own b.By consulting your immediate superior c.With the help of the Union d.All 3. Are you satisfied with your salary? a.Yes b.No 4. Does your salary complement your work content? a.Yes b.No 5. Are you satisfied with your promotional scheme? Page 74

a.Yes b.To some extent c.No 6. Are you happy with the work timings? a. Yes b. No

BIBLIOGRAPHY

1. Human Resource Management

(C.V Mamoria)

2. Company Law

(N.D.KAPOOR)

3. BHEL Manual

4. BHEL Annual report

5. HRM Review 6. http://www.bhelherp.com 7. http://www.bhel.com

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