Page 200 - DMGT548_GLOBAL_HRM

Unit 10: International Industrial Relations

In October, 1993, the second agreement was signed between management and the union. Notes
Between October, 1993 and December, 1996 the productivity and industrial relations were
improved. In 1996 the organisation started receiving export orders for its products. The
quality requirements for the export orders were stringent. Therefore, the organisation
decided to go in for ISO 9000 certification for their Rampur plant. The management realising
the importance of workers’ involvement in ISO 9000 certification process started training
workers on a continuous basis in June, 1996. The in-house training emphasised on house
keeping, general hygiene of the workers, standard operation procedure and awareness
about all kinds of losses. As a result of continued efforts, ISO 9002 certification was received
by the plant in January, 1997. Meanwhile, the third wage agreement was signed between
the management and the union for a period of three years in January, 1997. To reinforce
the training process, HRD cell with well-equipped in-house training tools was developed
in January, 1998. Training programmes focussed on shop-floor excellence and total
productive maintenance (TPM). Quality manual for internal use was also developed. The
goals for 2000–2001 for the plant were devised as under:
1. Laying of natural gas pipeline
2. ISO 14000 certification
3. Control of losses

4. Reduction in personnel expenditure
5. Team building training
The Rampur plant of Norman had come a long way since its inception. In the words of
Trivedi, “despite all the bottlenecks, we have achieved a satisfactory level of productivity.
We still intend to continue doing so by various means. However, I want to build this plant
as a community where each member’s commitment with the plant remains high. This can
only be achieved by inculcating the ownership value. We sincerely believe that this can
only be developed by creating a community of Norman in which every member is ensured
of a minimum standard of living with all basic amenities and worry free life away from
work. We intend to do so by providing medical, educational and vocational training
facilities for their families, thereby developing trust between the management and the
workers.”
Questions
1 Does formation of trade unions help organisations improve industrial relations?
2. Was it a right strategy to nurture pro-management union leaders?

3. Was it a right strategy adopted by Jain not to recognise and encourage outside
leadership for the plant union?
4. The strategy to instil fear in the minds of workers to improve their productivity was
in the interest of the organisation. Discuss.
5. In your view, what action should have been taken by the management at various
stages to improve labour-management relations?
6. In your view, what are the thrust areas in HR strategy which may improve the
competitive strength of the workers?

Source: B D Singh, Industrial Relations: Emerging Paradigms, Excel Books, New Delhi

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