CHAPTER I

INDUSTRY & COMPANY PROFILE

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INDUSTRY & COMPANY PROFILE

INTRODUCTION

Hindustan Aeronautics Limited (HAL) came into existence on 1st

October 1964. The merger of Hindustan Aircraft Limited with

Aeronautics India Limited and Aircraft Manufacturing Depot, Kanpur

formed the Company. The Company traces its roots to the pioneering

efforts of an industrialist with extraordinary vision, the late Seth

Walchand Hirachand, who set up Hindustan Aircraft Limited at

Bangalore in association with the erstwhile princely State of Mysore in

December 1940. The Government of India became a shareholder in

March 1941 and took over the Management in 1942.

Today, HAL has 19 Production Units and 9 Research and Design

Centers in 7 locations in India. The Company has an impressive product

track record - 12 types of aircraft manufactured with in-house R & D and

14 types produced under license. HAL has manufactured over 3550

aircraft, 3600 Engines and overhauled over 8150 aircraft and 27300

Engines.

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HAL has been successful in numerous R & D programs developed for both Defence and

Civil Aviation sectors. HAL has made substantial progress in its current projects:

• Dhruv, which is Advanced Light Helicopter (ALH)

• Tejas - Light Combat Aircraft (LCA)

• Intermediate Jet Trainer (IJT)

• Various military and civil upgrades.

Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in March

2002, in the very first year of its production, a unique achievement.

HAL has played a significant role for India's space programs by participating in the

manufacture of structures for Satellite Launch Vehicles like

• PSLV (Polar Satellite Launch Vehicle)

• GSLV (Geo-synchronous Satellite Launch Vehicle)

• IRS (Indian Remote Satellite)

• INSAT (Indian National Satellite)

HAL has formed the following Joint Ventures (JVs):

• BAeHAL Software Limited

• Indo-Russian Aviation Limited (IRAL)

• Snecma HAL Aerospace Pvt Ltd

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 • SAMTEL HAL Display System Limited

• HALBIT Avionics Pvt Ltd

• HAL-Edgewood Technologies Pvt Ltd

• INFOTECH HAL Ltd

Apart from these seven, other major diversification projects are Industrial Marine Gas

Turbine and Airport Services. Several Co-production and Joint Ventures with international

participation are under consideration.

HAL's supplies / services are mainly to Indian Defence Services, Coast Guards and Border

Security Forces. Transport Aircraft and Helicopters have also been supplied to Airlines as

well as State Governments of India. The Company has also achieved a foothold in export in

more than 30 countries, having demonstrated its quality and price competitiveness.

HAL has won several International & National Awards for achievements in R&D,

Technology, Managerial Performance, Exports, Energy Conservation, Quality and Fulfillment

of Social Responsibilities.

• HAL was awarded the “INTERNATIONAL GOLD MEDAL AWARD” for Corporate

Achievement in Quality and Efficiency at the International Summit (Global Rating

Leaders 2003), London, UK by M/s Global Rating, UK in conjunction with the

International Information and Marketing Centre (IIMC).

• HAL was presented the International - “ARCH OF EUROPE” Award in Gold Category

in recognition for its commitment to Quality, Leadership, Technology and Innovation.

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 • At the National level, HAL won the "GOLD TROPHY" for excellence in Public Sector

Management, instituted by the Standing Conference of Public Enterprises (SCOPE).

The Company scaled new heights in the financial year 2006-07 with a turnover of Rs.7,

783.61 Crores.

During the period of world war II over 1000 aircrafts such as-

 Fortress

 Liberator

 Mitcell bombers

 Dekota

 Command transport aircraft

Cataline amphibious and piston fitted to these aircrafts were overhauled by H.A.L.An aircraft

manufacturing depot (AMD) was established at Kanpur in U.P. in the month of January as an

air force unit for manufacture of HAWKER SIDDLEY 748 twin turbo prop transport aircraft.

Evolution and Growth of Company

The Company's steady organizational growth over the years with consolidation and

enlargement of its operational base by creating sophisticated facilities for manufacture of

aircraft / helicopters, aero Engines, accessories and avionics is illustrated below.

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Organization Chart

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Our Products

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Aircraft of Russian Origin:

Su 30 MKI-

Twin-seater, Multi-role, Long range Fighter / Bomber / Air

Superiority Aircraft

MiG-27 M-

Single-seater Tactical Fighter / Bomber with variable sweep

wings

MiG-21 VARIANTS

Single-seater Front line Tactical Interceptor / Fighter Aircraft

METALLIC DROP TANKS

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The Division manufactures different types of metallic drop (Jettisonable) tanks with capacity

of 490 and 800 liters.

Product Period Qty

HS-748 Aircraft 1960-83 89
Gliders 1963-86 164
Basant Aircraft (HA-31) 1975-78 19
HPT-32 Aircraft 1983-98 142
Dornier-228 Aircraft 1985 onwards 83
ATP Tail plane (for Export) 1987-95 24

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FINANCIAL POSITION OF HINDUSTAN AERONAUTICS LTD (LUCKNOW)

Hindustan Aeronautics Limited (HAL) has cruised past the Rs.10, 000 crore mark for the first

time with a sales turnover of Rs.10260 crores during the Financial Year 2008-09. The profit

of the Company (Profit before Tax) soared to Rs.2260 crores.

The highlights are given below:

(Rupees in Crores)

Particulars 2007-08 2008-09 Growth-over

Sales 8625 10260 18.96%

VOP 8791 11162 26.97%
Profit before tax 2164 2260 4.44%
Profit after tax 1632 1559 -4.47%
Gross Block 2255 2661 18.00%

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 OBJECTIVES OF HAL

• To ensure availability of Total Quality People to meet the Organizational Goals and

Objectives.

• To have a continuous improvement in Knowledge, Skill and Competence (Managerial,

Behavioral and Technical)

• To promote a Culture of Achievement and Excellence with emphasis on Integrity,

Credibility and Quality

• To maintain a motivated workforce through empowerment of Individual and team

building.

• To enhance Organizational Learning

• To play a pivotal role directly and significantly to enhance Productivity,

• Profitability and improve the Quality of Work Life

Mission and Values

OUR MISSION:

“To become a globally competitive aerospace industry while working as an instrument for

achieving self-reliance in design, manufacture and maintenance of aerospace defence

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equipment and diversifying to related areas, managing the business on commercial lines in a

climate of growing professional competence".

OUR VALUES:

 Customer Satisfaction:

We are dedicated to building a relationship with our customers where we become partners in

fulfilling their mission. We strive to understand our customers ' needs and to deliver products

and services that fulfill and exceed all their requirements.

 Commitment to Total Quality:

We are committed to continuous improvement of all our activities. We will supply products

and services that conform to highest standards of design, manufacture, reliability,

maintainability and fitness for use as desired by our customers.

 Cost and Time Consciousness:

We believe that our success depends on our ability to continually reduce the cost and

shorten the delivery period of our products and services. We will achieve this by eliminating

waste in all activities and continuously improving all processes in every area of our work.

 Innovation and Creativity:

We believe in striving for improvement in every activity involved in our business by pursuing

and encouraging risk-taking, experimentation and learning at all levels within the company

with a view to achieving excellence and competitiveness.

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 Trust and Team Spirit:

We believe in achieving harmony in work life through mutual trust, transparency, co-

operation, and a sense of belonging. We will strive for building empowered teams to work

towards achieving organizational goals.

 Respect for the Individuals:

We value our people. We will treat each other with dignity and respect and strive for

individual growth and realization of everyone's full potential.

 Integrity:

We believe in a commitment to be honest, trustworthy, and fair in all our dealings. We

commit to be loyal and devoted to our organization. We will practice self discipline and own

responsibility for our actions. We will comply with all requirements so as to ensure that our

organization is always worthy of trust

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Our People

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International Customers Domestic Customers

• Airbus Industries, France • Air India

• APPH Bolton, UK • Air Sahara

• BAE Systems, UK • Airports Authority of India

• Chelton, UK • Bharat Electronics

• Coast Guard, Mauritius • Border Security Force

• Corporate Air, Philippines • Coal India

• Cosmic Air, Nepal • Defence Research & Development Organization

• Dassault Aviation, France • Govt. of Andhra Pradesh

• Dowty Aerospace Hydraulics, • Govt. of Jammu & Kashmir

UK
• Govt. of Karnataka
• EADS, France
• Govt. of Maharashtra
• ELTA, Israel
• Govt. of Rajasthan
• Gorkha Airlines, Nepal
• Govt. of Uttar Pradesh
• Hampson, UK
• Govt. of West Bengal
• Honeywell International, USA
• Indian Airforce
• Island Aviation Services,
• Indian Airlines
Maldives
• Indian Army
• Israel Aircraft Industries, Israel

• Indian Coast Guard

• Messier Dowty Ltd., UK

• Indian Navy
• Mistubishi Heavy Industries,

Japan • Indian Space Research Organization

• MOOG, USA • Jet Airways

• Namibian Air Force, Namibia • Kudremukh Iron ore Company ltd.

• Royal Nepal Army, Nepal • NALCO

• Royal Thai Air Force, Thailand • Oil & Natural Gas Corporation Ltd.

• Smiths Industries, UK • Ordnance Factories

• Snecma, France • Reliance Industries

• Strong field Technologies, UK • United Breweries

• The Boeing Aircraft Company,

USA
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• Transworld Aviation, UAE

• Vietnam Air Force, Vietnam

C

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We shall-

• Keep our complaint and grievance redressed Machinery open and receptive to you.

• Acknowledge your complaints and commit ourselves to redress them within a period of

thirty working days on receipt of the complaints.

• Should you still have any complaint or grievance you may also take up the matter with

the designated officer heading the public grievance committee at our corporate and

divisional offices.

• Acknowledgment of grievances and disposal thereof within 30 days. In case of any

complaint or grievance, please take up the matter with the officer nominated by the

division for redressal of public grievance in the division which is headed by an officer of

the grade of a DGM

• Promptly take action against the complaints by going into the genuineness and roots of

the complaints and within a time frame attend to the grievances.

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HELP LINE

• All our Divisions, Service Stations and Corporate office are ever willing to provide you

the help and assistance required in the selection, design, manufacture and

maintenance of any of our products and services.

• We shall equip our public relations department suitably to render you all general

information, which is of common interest.

• You are also welcome to visit us at our website: www.hal-india.com for immediate help

and assistance to meet your product and services requirement.

• A network of help line personnel will be identified in each division/complex, which will

provide immediate assistance in various matters.

HAL Management Academy

HAL Management Academy (HMA) was established by the corporate management of Hindustan

Aeronautics Limited, way back in August 1969, under the then name of HAL Staff College. It was

re-named HAL Management Academy in June 2001 to reflect its focus on management

development, consultancy and research. HMA has now competed 35 years of fruitful contribution

to the cause of management education.

Responding to the need amongst practicing managers to constantly refresh and update their

managerial skills, HMA offers a variety of programs in an open and short duration format. These

programs form a part of a larger focus on Executive education. HMA’s programs prepare

practicing managers to meet the challenges of today’s dynamic business milieu.

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These programs provide exposure to the latest development in managerial practice at a global as

well as local level.

MANAGEMENT DEVELOPMENT PROGRAMS:

The Programs conducted at HLA are broadly categorized into:

• Individual Development

• General Management

• Functional/ Technical Programs

• Leadership Programs

Certain programs provide opportunity for experiential learning inside and outside the classroom.

Action oriented learning is imparted through outbound training in serene settings away from the

hustle bustle of the city.

FACULTY:

HAL Management Academy has qualified and experienced full time faculty who have worked for

several years in production divisions. In addition, senior executives from different divisions are

also invited as guest faculty. Apart from this, expert faculty from reputed institutions like the

Indian Institute of Management, the Indian Statistical Institute, the Administrative Staff College of

India, the Indian Institutes of Technology, the Indian Institute of Science and other well known

trainers, consultants are also invited to handle sessions on specialized topics.

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SOME PROGRAM THEMES:

• LEAN Management

• Visionary Thinking through Strategic Management

• Human Resource Management for Competitive Advantage in the dynamic

environment

• Personality Development for Corporate Excellence

• Integrated Material Management & Supply Chain Management for Value

Addition

• Quality Management

• Finance Management

• Induction and Basic Management Program for new entrants

TOOLS FOR TRAINING:

Diagnostics, experience-sharing, action-planning and learning diary help in enhancing the

effectiveness of learning. Diagnostics exercise enables participants to identify difficulties faced in

their work-place, helps them in analyzing the situation and arriving at remedial solutions. The

Learning Diary helps participants identify key learning points. Individual and group action plans

are the means for transferring learning from the classroom to the work-place.

AMBIENCE:

A sprawling building amidst thick foliage, lush lawns, pathways and flower beds provide a

serene retreat from the distractions of the bustling metropolis. This ambience has a soothing

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effect on the minds of the participants and takes them away from the hectic business scenes to an

idyllic location where they can review their contribution from more creative perspectives.

INFRASTRUCTURE:

Training Halls:

HMA has five air-conditioned and acoustically-treated training halls with seating capacity

varying from 15 to 50, with flexible seating arrangements. Each classroom is equipped with an

Overhead projector, writing board, Public Address System, Digital Light Processing Projector

(DLP), computer with the necessary state-of-the-art software to make presentations.

Library:

A good library with over 12000 books mainly on management topics, a number of professional

journals and an impressive collection of audio-visual aids supplement

classroom learning and assignments.

Auditorium:

An auditorium air-conditioned and acoustically designed with 180 seats is also available for

viewing films / videos and conducting seminars. A well-lit dais is also suitable for cultural

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programsby participants.

Accommodation:

Forty fully furnished twin occupancy rooms and five dormitories provide accommodation for a

hundred participants. A neat and tidy cafeteria within the campus provides nutritious food and

caters to the palate of the participants from all over the country.

Recreation Centre:

The recreation centre is equipped with a home-gym, facilities for indoor and outdoor sports

and also a television set, which provide the participants the much needed relaxation during the

off-hours and holidays. A lot of newspapers and magazines are also available.

Personal and Administrative Department

HAL, Lucknow division has eight sections in its Personal and Administrative Department. They

are:

1. Recruitment and Policy Section

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2. HRD Cell

3. Establishment

4. Industrial Relations

5. Legal Cell

6. General Administration

7. Rajbhasha Section

8. Public Relations

9. Sports

1) Recruitment and Policy Section:

This section deals with recruitment, performance appraisal reports, salaries and wages

anomalies maintenance of roster as per Presidential Directives on reservation of SC,

ST,OBC etc. The sources of recruitment may be external or internal. Internally the

vacancies are filled through transfers and promotions while External sources include

advertisement in press, notification to the employment exchange/directorate, deputation or

contract, trainees’ campus interviews etc. Recruitment for executive post is done by the

corporate office while for supervisors and worker cadre the unit itself holds the

responsibility. Due to ban on direct recruitment by the corporate office since 1987, not much

is being done presently. The most important function of this section is to deal with

promotion of the employees. It aims to provide all employees with equal opportunities of

growth and career prospects and to ensure fairness, equitability, consistency and uniformity

in matters of promotion.

There are three types of promotions:

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 • Time Scale Promotion (TSP) for employees up to scale 10.

• Internal Merit Selection (IMS) and Career Planning Promotion (CPP) for employees

from Grade I to IV.

• Promotions from Grade V and above are dealt by Corporate Office at Bangalore.

Transfers are done at two levels:

• Inter Departmental Transfer (Job Rotation).

• Inter Divisional Transfers.

Transfers can be initiated on need basis, medical basis, promotion basis, subsequent

increments are added on each year.

2) Human Resource Development Cell:

As a major strategy for giving a filling to HRD performance cell have been created at

divisional levels to ensure effective implementation of HRD plans with special emphasis on

identification of development needs and preparing the manpower for advanced future

technologies. The HRD cell was informally started in the division in October 1989. On the

analysis of Strengths and Weaknesses of the division, the role of HRD cell was primarily

conceived as a change agent. It carries out following activities:

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Training:

HAL has a training centre which is fully equipped with modern audio-visual facilities various

pertinent trainings are organized to develop the officer’s workmen. Educative workshops on shop

floor management, leadership and motivation, compute materials management, special literacy

classes, TQM awareness programmes, training programmes for officers association and the

recognized union, studies on absenteeism counseling grievance handling etc.

Other than Training Activities:

• Creating database for employees and strengthening the existing MIS system.

• Bringing in computer awareness amongst the staff of P&A department.

• Introduction of the concept of quality circle and emphasis on more participative interaction

in problem solving.

• Reactivation of suggestion scheme.

• Shop floor grievances handling.

• Brain storming and feedback sessions etc.

3) Establishment Section:

This section maintains a detailed record of each regular employee of the company relating to

personal qualification, job performance, rewards, promotion level etc. other functions of this

s333ection are as follows:

• Job Confirmation

• Transfer

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 • Resignation

• Superannuation

• Voluntary Retirement of Employees

• Dealing with advances in cars, scooter, cycles, house loans, subsidy etc.

• LIC Encashment of Employees

• Family Planning Incentives

• Reimbursement of School Fee

• Presentation of service certificate on completion of 10, 15, 25 years of service

• NOC for passport and contesting election of local bodies

4) Industrial Relation Section:

This company has set up healthy traditions in encouraging and fostering cordial and harmonious

Industrial Relation in its dealings with the employees. The main functions of Industrial Relations

are:

• Compliance of Statutory Provisions

• Dealing with Union

• Casual/Contract labor in canteen and sanitation

• Welfare facilities and committees

• Participative Management

In HAL there are 6 registered unions. They are:

• HAEA (HAL Employees Association)

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 Recognized by management majority union

• HALEU (HAL Employee Union)

• HARSS (HAL Rashtriya Shram Sangthan)

• HADEA (HAL Diploma Engineers Association)

• HAPKS (HAL Prashikshit Karmchari Sangh)

• HAKS (HAL Karmchari Sangh)

Under the scheme of workers participation in management, HAL has set up with shop level

committees and one plant level committee comprising comprising of time representatives

each of workmen and management. The purpose of these committees is to achieve better

efficiency and increases productivity by active labor participation.

Besides various welfare schemes are being operated by company to keep its employee

and there family members happy and contented some important welfare facilities are:

Medical, Sanitation, Housing, Educational, Canteen, Sports, Crèche, Workers Education,

Supply of milk and vitamins tables, uniforms, safety equipments, momentous for long

service etc. Other facilities are bank, post office, officers club cum guest house, swimming

pool, kendriya bhandar, LTC, incentives on acquiring a higher qualification etc.

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5) Legal Section:

The legal section manages the cases pertaining to:

• Disciplinary Action

• Industrial Dispute

Disciplinary Action: Any employer who commits misconduct as per the standing order

(for workmen) or conduct rules (for officers) is issued a charge sheet on the request of

departmental head. The charge sheet contains all the details of the misconduct i.e. the

time, place and the nature of incident. The employee then submits and explains within

the stipulated time. If the department is not satisfied with the explanation, he may asked for

domestic enquiry to the held. The enquiry is generally chaired by a senior officer who

presents the case on behalf of management. The accused employee can either present the

case himself or get coworker to present. The case for him, the chairman decides whether

the employee is guilty or not. After listening to both the sides and witness, punishment is

awarded to guilty employee by his departmental head.

Industrial Disputes: Legal section acts as an intermediary between HAL and Lawyers of

the HAL. They worked with the Lawyers and collect facts & data required for a particular

case. They also coordinate and monitor court proceedings. This section deals all the cases

whether they are in the conciliation stage or with the labor court, industrial tribunal or the

national tribunal.

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6) General Administration Section:

Main activities of this section are:

• Allotment of type A, B, C, D quarters in the township as per various quotas.

• Issuance of Passport, Visa clearance, Rail Booking, Air ticketing booking.

• Organize VIP visits hotel and guest house accommodation for them.

• Correspondence with LDA, Nagar Nigam and other Government agencies.

• Arrangement of night duties of officers.

• Correspondence with schools, banks, post office and kendriya bhandar

7) Rajbhasha Section:

Rajbhasha section (Hindi Cell) has a significant role to play in the promotion of Hindi as an

official language. The cell has distributed charts, posters & stickers amongst various

departments to motivate workers use Hindi in their duly working. Every year six Hindi

workshops are held by the name of “Hindi Karyashala” on the occasion of Hindi Diwas/

Pakhwara in the month of September. About 200 workers are trained in this programme

and they also receive rewards for various competitions such as essay writing, Hindi typing,

Elocution etc. HAL Lucknow Division has also been awarded by State/Central bodies for

maximum use of Rajbhasha in daily working and implementation of Rajbhasha policies.

8) Public Relations Section:

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 The role of public relation is to project a positive and favourable image of the company in

the mind of employees and public through the effective use of media such as press,

inhouse magazines, circulars, journals etc. The press activities include highlighting of

sports, cultural events, new and advanced developments at HAL, achievement of financial

targets, indigenous research and marketing etc. Veque and Udaan,in the house magazines

familiarize the employees with the company’s progress in terms of productivity, training

programmes, cultural and sports events and future prospects.

9) Sports Section:

This section is responsible for organizing tournaments such as cricket, soft ball, volley ball,

foot ball, hockey, basket ball, kabaddi, badminton, shooting and chess room are formed and mate

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Our Divisions

1. Accessories Division, Lucknow:

Accessories Division of HAL was established in 1970 with the primary objective of manufacturing

systems and accessories for various aircraft and Engines and attains self sufficiency in this area.

Its facilities are spread over 94,000 sqm of built area set in sylvan surroundings. At present it is

turning out over 1100 different types of accessories. The Division started with manufacturing

various Systems and Accessories viz, Hydraulics, Engine Fuel System, Air-conditioning and

Pressurization, Gyro & Barometric Instruments, Electrical System items, Undercarriages,

Electronic items all under one roof to meet the requirements of the aircraft, helicopters and

Engines being produced by HAL. This was followed up with manufacturing the same range of

accessories for MiG series of aircraft, International Jaguar and repair / overhaul of Mirage-2000 &

Sea-Harrier accessories. In addition the Division manufactures systems for Civil Aircraft i.e. Avro,

Dornier and AN-32 & cheetah, chetak & Advanced Light Helicopters.

The Division today has a prime name in the Aviation market and various international companies

are interested to join hands with it for future projects.

The Division has also made steady progress in the area of Export.

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Awards:

The Accessories Division Certifications are:

• The ISO 9001 Certification for entire range of products and services.

• ISO 14001 Certification for Environmental Management System

The Accessories Division Approvals are:

• Approval from DGCA, Govt. of India for design and development, manufacturing and

repair.

• Approval for Research & Design Centre by Department of Science and Technology, Govt.

of India.

• Approval of Director General Aeronautical Quality Assurance for Military Aviation products

and services

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2. Aerospace Division, Bangalore:

India's growing involvement in space exploration is reflected in the establishment of a world

class manufacturing base for space worthy hardware. The Aerospace Division of HAL so

established is today dedicated to the manufacture of hardware for India's growing space

programs. Hindustan Aeronautics Ltd's participation in space programs started as early as 1972

and formed into a full fledged dedicated facility thereafter.

The Division has the technical expertise to fabricate large size Aluminum Alloy riveted

structures, welded propellant tanks and water tanks. Currently under production are the Light

Alloy Structures for the Polar Satellite Launch Vehicle (PSLV), Geo-stationary Launch Vehicle

(GSLV MkII), Indian Remote Sensing Satellite (IRS), Indian National Satellite (INSAT) and the

structures & welded tanks for the Cryogenic upper stage of GSLV MkII. The Division has taken

up full equipping & integration of the strapon L – 40 stage for GSLV MkII and also manufacture

of all riveted structures & welded tankages for a larger GSLV MK III vehicle with .

Awards:

The Division has been awarded ' Defence Technology Absorption Award' constituted for

the best industries (Public / Private) for taking active part in productionising the system

developed by DRDO.

3. Aircraft Division, Nasik:

Aircraft Division, Nasik, established in the year 1964 for licence manufacture of miG-21FL aircraft

& K-13 Missiles, is located at Ojhar, 24 kilometers from Nasik and approximately 200 kilometers

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from Mumbai in the state of Maharashtra. The division since then manufactured other MiG

variants; viz MiG-21M, MiG-21 BIS AND MiG-27 M aircraft. Along with manufacturing, the division

also carries out overhaul of the MiG series aircraft.

The Division is well laid out on a sprawling complex of 1, 48, 20,000 Sq.meters with a built-up

area of 1, 73,900 sq.meters having state-of-the-art plant/machinery/equipment and infrastructure.

It has well qualified and trained manpower in different areas of aviation technology, viz design and

development, manufacture and overhaul of aircraft, accessories and related products.

The Division is an independent profit-centre and is currently engaged in the following activities:

So far the Division has manufactured more than 700 aircraft and overhaul more than 1300

aircraft. With the expertise gained over the last 3 decades, the division has already made its

presence felt in the global market and is fully geared up for meeting any challenging task in the

domestic and the international market.

Awards:

The Aircraft Division has been accredited with ISO-9001 QUALITY SYSTEM CERTIFICATION

and is in pursuit of TOTAL QUALITY MANAGEMENT. The Quality System prevailing in the

company ensures quality of products and processes right from receipt of raw materials upto the

delivery of finished product. More than 500 qualified and approved inspection staff ensures that

quality of products/services is of the highest standard. The quality system works on a three tier

system of Inspection by shop, Quality control Department and Customer Inspection.

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4. Aircraft Division, Bangalore:

Aircraft Division was established in the year 1940. Since inception, the Division has manufactured

a variety of Aircraft both under license as well as indigenously designed and developed.

Currently, the Division is manufacturing the Jaguar International twin Seater Aircraft under license

from British Aerospace, UK.

The Division is equipped with modern infrastructure in Plant and Equipment like CAD- CAM

Manufacturing Engineering, Q109 quality Assurance and Customer support System with 2121

highly skilled personnel including more than 350 Engineers working in a covered area of 2,25,000

sq.m.

In a major diversification initiative, the division is now manufacturing and exporting high precision

Aircraft Components and sub-assemblies for commercial aircraft.

The Division has so far manufactured over 1,500 aircraft of various types. With experience and

capabilities built over the past six decades, the Aircraft Division is bidding for substantial share in

the International Aeronautical market.

Awards:

The Aircraft Division, Bangalore is an ISO 9002 company. The Division also has Quality

System and authorization to perform special processes from International Aerospace Companies

such as Aerospatiale, Dassault Aviation, Boeing, and British Aerospace for export of precision

aircraft components and assemblies. The division has also been approved to D1-9000 Advance

quality system by Boeing Company, U.S.A.

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The division holds the following approvals:

A. National

• Director General of Aeronautical Quality Assurance (DGAQA), India.

• Director General of Civil Aviation (DGCA), India.

B. International

• Aerospatiale and DGAC, France.

• Boeing Airplane Company, USA.

• British Aerospace Defence ltd., UK.

• Dassault Aviation, France.

• Dornier Luffahrt & LBA, Germany.

• Federal Aviation Administration, U.S.A.

5. Avionics Division, Hyderabad:

In early sixties, it was strongly felt that our defence services should be more self reliant in

defence related equipment, electronics in particular. This resulted in HAL setting up a full - fledged

unit to cater to the aviation electronics (AVIONICS ). Thus Avionics Division, Hyderabad was born

in the year 1965.

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To begin with, the Division's dedicated design team took up the task of indigenising, the following

critical avionics.

• Identification of Friend or Foe

• UHF Communication set

• V/UHF Communication System

• Automatic Direction Finder (ADF)

• Radio Alimeter

Awards:

The Avionics Division, Hyderabad has been accredited with ISO-9001 CERTIFICATION and

accomplished the following milestone:

• First prize in the field of Strategic Electronics during 1991 from Department of Electronics,

Govt. of India.

• National Award for R&D in Electronics from DSIR, Ministry of Science and Technology.

• ISO 9001 Certification for design, development, production and servicing.

• Qualification approval for Printed Circuit Boards from LCSO.

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6. Avionics Division, Korwa:

Avionics Division Korwa was established in the year 1982, to take up the production of

Display Attack Ranging and Innertial Navigation (DARIN) system for Jaguar International aircraft

for indian Air Force. Since, 1987 Korwa Division has also been manufacturing and supplying

similar avionic systems for MiG-27 aircraft to IAF. All the facilities required for manufacture of

such advanced airborne avionic systems are available under one roof.

7. Engine Division, Bangalore:

The Engine Division, which is ISO-9002 certified, was set up in 1957 to manufacture Orpheus

turbo jet Engines under license from Rolls Royce. In 1959, another license agreement was signed

with Rolls Royce to manufacture Dart Engines to power HS-748 passenger aircraft and overhaul

Avon Engines fitted on Canberra & Hunter aircraft. Since then, the division has grown from

strength to strength. It is now engaged in the manufacture of Artouste Engines for

Chetak/Cheetah helicopters, Adour Engines for

Engine division also undertakes repair and overhaul of various aero Engines operated by Indian

Airforce, Indian Navy, Indian Army, Coast Guard, Border Security Force, Corporate sector, State

Government and other civil customers. The division has manufactured more than 2,100 aero

Engines and overhauled & repaired 11,000 Engines.

38
Awards:

• The Engine Division has been credited with ISO 9002 Certificate from December 1995

onwards

• Laboratory is approved by Honeywell, USA as authorised 'SOAP' (Spectrometric Oil

analysis Programme) facility for Garett Engine.

• Laboratory and Quality organisation are approved by civil and Military Air-Worthiness

Authorities, DGCA and DGAQA.

8. Engine Division, Koraput:

Engine Division - Koraput, a unit of HAL's vast network, was set up in April 1964 to manufacture

R11-f2 turbo jet Engine of MiG-21 FL aircraft under license from the erstwhile USSR.

Subsequently, the division took up, under various license agreements, manufacture of R-11 series

Engines of MIG-21 FL and MiG-21M aircraft, R-25 series Engines of MiG-21 BIS aircraft and R-

29B Engines for Mig-27M aircraft. Simultaneously, facilities were set up for overhaul of R-11 and

R-25 series Engines, which started in 1971 and 1983 respectively.

Starting from 1997 - 98 we have also undertaken overhaul of RD - 33 Engines of MiG-29 aircraft.

The Division has a long term plan to undertake manufacture of AL-31FP Engines for SU-30MKl

aircraft under license.

39
9. Foundry and Forge Division, Bangalore:

The Foundry & Forge Division was established in 1953. The Division's facility, set up on a

lush expanse of 32 acres, manufactures castings, forgings, rolled rings, brake pads and rubber

products for critical applications for the Aeronautics, Space, Defence, Locomotive, Earthmover

and other industries. Advanced Technology, Quality and Reliability and a highly skilled

workforce have enabled the Division to turn out failsafe components for vital applications

in war and peace, meeting the exacting needs of every customer. The Division is one of the

few units in the world to be acknowledged for its diverse and wide range of products,

manufacturing processes, complemented by its state-of-the-art and comprehensive infrastructure.

The Division also caters to the commercial market.

Awards:

• ISO-9002 Certification

• Director General of Aeronautical Quality Assurance

• Director General of Civil Aviation

• Ministry of Science & Technology, government of India.

40
10. Helicopter Division, Bangalore:

HAL'S involvement with rotary-winged aircraft dates back to June 1962 when, to meet the Indian

Air Force's requirement for light helicopters, the Government of India signed a licence agreement

with M/s SUD-AVIATION (Presently M/s EUROCOPTER, France).

The first helicopter type to be built at HAL Bangalore was the Alouette ill, later named Chetak with

firm orders having been placed in January 1965, the "raw material" production phase beginning in

1969-70. The Alouette II, with the dynamics including powerplant of the Alouette ill was

specifically developed to meet the Indian Army's stringent requirement and was christened Lama

by the French (and Cheetah by the Indians). The SA-315B licence-agreement was signed in

September 1970. First Cheetah manufactured from raw materials was delivered in 1976-77.

Established in July 1970 and the new buildings of the Helicopter Division inaugurated by the then

President of India, V.V.Giri on 17 July 1974.

License agreement for the manufacture of CHEETAH (SA-315- LAMA) was signed with M/s

SNIAS, France (Presently M/s EUROCOPTER, France) in September 1970 and the first Cheetah

helicopter manufactured from raw

The Helicopter Division, to which is adjoined the Helicopter Design Bureau (now Rotary Wing

R&D Centre) and Advanced Light Helicopter (ALH) prototype hangers, has 42,000 sq.metres of

factory buildings in which the manufacturing, assembly and testing facilities are

41
established. The Division employs 1100 persons, including Engineers, and is set to expand with

the envisaged series production of the ALH.

11. Industrial and Marine Gas Turbine Division Bangalore:

IMGT Division, HAL, Bangalore, India provides the most comprehensive service by offering

support in areas of Inspection, Spare Parts, Maintenance, Equipment Overhauls & Assembly for

Industrial & Marine Gas Turbines under license from reputed manufacturers.

IMGT activities which were earlier part of HAL Engine Division became an independent entity

from 1st April 1998 to manufacture and support on Industrial & Marine Gas Turbine under license

from reputable manufacturers as given below:

12. Overhaul Division, Bangalore:

The origin of the Overhaul Division can be traced back to the erstwhile Hindustan Aircraft Limited

established at Bangalore on 23rd December 1940 by a far sighted industrialist, the late Seth

Walchand Hirachand in association with the Government of the then Princely State of Mysore with

the object of establishing an aviation industry that can take up assembly and overhaul of aircraft

under license.

Spread over an area of more than 10 hectares of land, Overhaul Division is empowered by a

highly skilled workforce of 1200 supported by 215 well qualified and experienced executives.

Awards:

Overhaul Division has been accredited with ISO 9001:2000 Quality Management Systems

certificate by BIS.

42
 • The Division is honoured with a special award from the Chief of Air Staff, IAF in Nov 2002

in recognition of its yeoman services.

• The Division bagged the “Best Customer Services Award” for the year 2002-2003.

• Overhaul Division has been certified with ISO 14001:1996 Environmental Management

Systems by BIS.

13. Transport Aircraft Division, Kanpur:

Transport Aircraft Division of HAL was set up in 1960 to manufacture the HS-748, a medium haul

turbo-prop passenger transport aircraft. Over the years, it has vastly developed its infrastructure

and capabilities and undertaken the manufacture of 15-19 seater multi role utility aircraft (Dornier

DO - 228), agriculture aircraft (HA-31), basic trainer aircraft (HPT - 32) and variety of aerospace

structural assemblies and components for both domestic and International market. Production of

DO-228 is expected to continue for another 8-10 years. The total number of aircraft delivered are

as follows:

Awards:

The Transport Aircraft Division Certification are:

• ISO 9001-2000 quality system approval

• ISO 14001 Environment Management System

• Approval by the following Govt. of India agencies:

43
 o Directorate General of Civil Aviation (DGCA)

o Directorate General of Aeronautical Quality Assurance (DGAQA)

o Centre for Military Airworthiness Certification (Cemilac)

• Approval by the following foreign agencies

o Civil Aviation Department, Maldives.

Our Exports

 Advanced Light Helicopter

 Dhruv (Advanced Light Helicopte

 Aero structures:

 Airbus A320 Forward Passenger Doors

 Boeing 757 Over Wing Exit Doors

 Boeing 777 Uplock Box Assembly

 Boeing 767 Bulk Cargo Doors

 Boeing 737 Freighter Conversion Kits

 BAE Systems – Tornado Pylons

 Fokker Aerostructures – F50 Horizontal Stabilizers

 Boeing -3D-Modelling / Digitisation of Drawings

44
  Helicopters:

 Chetak

 Cheetah

 Lancer

 Engines:

 Adour MK 811

 Garrett 331 – 5

 Artouste III B

Potential for Overhaul and Repair:

 DART 533 - 2 AND 536 - 2T

 Rolls Royce Allison 501 K – Industrial Marine Gas Turbine

Avionics:

 JAGUAR AVIONICS

 Inertial Navigation System

 Head-Up Display & Weapon Aiming Computer (HUDWAC)

 Combined Map and Electronic Display (COMED)

 Flight Data Recorder (FDR)

45
  Spares and Services:

HAL provides Spares, Repair & Overhaul services for the following aircraft and Engines:

 AIRCRAFTS

 Jaguar

 MiG-21 series aircraft

 DO-228

 Mirage 2000

 HS-748

 Cheetah (LAMA SA315 Helicopters)

 Chetak ( Alouette III)

 ENGINES

 Garrett

 Dart

 Artouste IIIB

46
HAL AT A GLANCE

1940 Hindustan Aircraft Ltd. Was set up by Late. Sri Walchand Hirachand in association with

then Govt. of Mysore, as a Private Ltd. Company.

1941-42 First product Harlow Trainer and curliest hawk Aircraft handed over to Govt. of India

Company was handed over United States Air Force.

1942-45 HAL repaired over 1000 different varieties of aircraft and 3800 piston engines.

1945 Govt. of India took over the management of HAL again after the world war.

1948-49 First Percival prentice aircraft assembled.

1951 The control of HAL was shifted from ministry of industries to Ministry of Defence.

1953-54 The first Hindustan Trainer (HT-II) had its maiden flight.

1956 HAL came under the public sector.

1960 Aircraft manufacturing depot was established at Kanpur.

1662 Aeronautics India Ltd was formed to manufacture MIG-21 Aircraft Three factories at Nasik,

Koraput and Hyderabad established.

47
1964 HAL was dissolved and its assets were merged with Aeronautics India Ltd and the company

by the name of Hindustan Aeronautics Limited was formed.

1969 An agreement with USSR was reached for the license production of MIG-21 aircraft.

1970 Helicopter Division was established to manufacture helicopters.

1973 Lucknow Division established to manufacture, instruments and accessories.

1979 Agreement with British Aerospace for manufacturing Jaguar Aircraft.

1982 Agreement with USSR for license production of MIG-27M aircraft.

1983 Korwa Division of HAL formed.

1990 Design and development of Light Combat Aircraft (LCA).

1991Development of Advance Light Helicopter (ALH).

1993 Certification of ISO-9001.

1998 IMGT, a new division established at Bangalore.

2000 Certification of ISO-14001.

2003 License permitted by Russia for manufacturing of SU-30 Aircraft.

48
CHAPTER II
PROJECT PROFILE

49
REASON OF PROJECT-

As Industrial Relation is the most important function that directly contributes to the relationship of

human resources which have to be established. The organization should create conditions in

which people acquire new knowledge and skills and develop neatly patterns of behaviour and

styles.

So to know the situation of industrial relation HAL, Lucknow division the project was undertaken.

Introduction to Industrial Relations:

Introduction to Industrial Relations

Industrial relations has become one of the most delicate and complex problems of modern

industrial society. Industrial progress is impossible without cooperation of labors and harmonious

relationships. Therefore, it is in the interest of all to create and maintain good relations between

employees (labor) and employers (management).

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 explain the relationship between employees and management which

stem directly or indirectly from union-employer relationship.

50
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 have a broad as well as a narrow outlook. Originally, industrial

relations were broadly defined to include the relationships and interactions between employers

and employees. From this perspective, industrial relations cover 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, the

relationships between employers, the relationships employers and workers have with the

organizations 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.

51
TERMS:-

For better understanding of industrial relations, various terms need to be defined here:

Industry:

Industrial Disputes Act 1947 defines an industry as any systematic activity carried on by co-

operation between an employer and his workmen for the production, supply or distribution of

goods or services with a view to satisfy human wants or wishes whether or not any capital has

been invested for the purpose of carrying on such activity; or such activity is carried on with a

motive to make any gain or profit. Thus, an industry is a whole gamut of activities that are carried

on by an employer with the help of his employees and labors for production and distribution of

goods to earn profits.

Employer:

An employer can be defined from different perspectives as:-

• A person or business that pays a wage or fixed payment to other person(s) in exchange for

the services of such persons.

• A person who directly engages a worker/employee in employment.

• Any person who employs, whether directly or through another person or agency, one or

more employees in any scheduled employment in respect of which minimum rates of

wages have been fixed.

52
 As per Industrial Disputes Act 1947 an employer means:-

• in relation to an industry carried on by or under the authority of any department of [the

Central Government or a State Government], the authority prescribed in this behalf, or

where no authority is prescribed, the head of the department;

• in relation to an industry carried on by or on behalf of a local authority, the chief executive

officer of that authority;

Employee: -

• Employee is a person who is hired by another person or business for a wage or fixed

payment in exchange for personal services and who does not provide the services as part

of an independent business.

• An employee is any individual employed by an employer.

• A person who works for a public or private employer and receives remuneration in wages

or salary by his employer while working on a commission basis, piece-rates or time rate.

Employee, as per Employee State Insurance Act 1948, is any person employed for wages in or in

connection with work of a factory or establishment to which the act applies. In order to qualify to

be an employee, under ESI Act, a person should belong to any of the categories:

o Those who are directly employed for wages by the principal employer within the premises

or outside in connection with work of the factory or establishment.

o Those employed for wages by or through an immediate employer in the premises of the

factory or establishment in connection with the work thereof.

53
 o Those employed for wages by or through an immediate employer in connection with the

factory or establishment outside the premises of such factory or establishment under the

supervision and control of the principal employer or his agent.

o Employees whose services are temporarily lent or let on hire to the principal employer by

an immediate employer under a contract of service (employees of security contractors,

labor contractors, house keeping contractors etc. come under this category).

Employment: The state of being employed or having a job.

Labor market:

The market in which workers compete for jobs and employers compete for workers is

called labor market. It acts as the external source from which organizations attract

employees. These markets occur because different conditions characterize different

geographical areas, industries, occupations, and professions at any given time.

54
OBJECTIVES OF INDUSTRIAL RELATIONS

The primary objective of industrial relations is to maintain congenial relations between employees

and employer. The other objectives are:

1. To promote and develop congenial labor management relations.

2. To enhance the economic status of the worker by improving wages, benefits and by

helping the worker in evolving sound budget.

3. To regulate the production by minimizing industrial conflicts through state control.

4. To socialize industries by making the government as an employer.

5. To provide an opportunity to the workers to have a say in the management and decision-

making.

6. To improve workers strength with a view to solve their problems through mutual

negotiations and consultation with the management.

7. To encourage and develop trade unions in order to improve the workers strength.

8. To avoid industrial conflict and their consequences and

9. To extend and maintain industrial democracy.

55
Functions of Industrial Relations

Functions of Industrial Relations include:

1. Communication is to be established between workers and the management in order to bridge

the traditional gulf between the two.

2. To establish a rapport between managers and the managed.

3. To ensure creative contribution of trade unions to avoid industrial conflicts, to safeguard the

interest of workers on the one hand and the management on the other hand, to avoid unhealthy,

unethical atmosphere in an industry.

4. To lay down considerations which may promote understanding, creativity and co-operation to

raise industrial productivity, to ensure better workers participation?

The industrial scene is affected by lack of central values, class struggle, competition and

unhealthy compromisers. Even in the latter part of the century, the management considers trade

unions as a nuisance or a hurdle. The trade unions on the other hand considered the

management and managers as exploiters. Workers are misled by their trade union leaders on the

one hand and they allow themselves to be exploited by management.The trade unions are organs

of political organizations and they follow the ideologies of those organizations even at the cost of

their own interest in the industry. As a result, the collective bargaining ends in either aggressive

bargaining or futile waste of time. These and many other considerations led the ILO to formulate

certain principles for promoting healthy industrial relations.

56
They are:

(a) Good labor-management relations depend on employers and trade unions capacity to deal

with their mutual problems freely, independently and responsibly.

(b) The trade unions and the employers and their organizations should be interested in resolving

their problems through collective bargaining and if necessary with the assistance of proper

government agency.

(c) Workers and employers organizations should be desirous of associating with government

agencies taking into consideration the general, social, public and economic measures affecting

employers and workers relations.

Industrial Relation System

An industrial relations system consists of the whole gamut of relationships between employees

and employees and employers which are managed by the means of conflict and cooperation.

A sound industrial relations system is one in which relationships between management and

employees (and their representatives) on the one hand, and between them and the State on

the other, are more harmonious and cooperative than conflictual and creates an environment

conducive to economic efficiency and the motivation, productivity and development of the

employee and generates employee loyalty and mutual trust.

57
Actors in the IR system:

Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and

fire them. Management can also affect workers’ interests by exercising their right to relocate,

close or merge the factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions of their employment. They

exchange views with management and voice their grievances. They also want to share decision

making powers of management. Workers generally unite to form unions against the management

and get support from these unions.

58
Government: The central and state government influences and regulates industrial relations

tribunal courts.

SCOPE:

The concept of industrial relations has a very wide meaning and connotation. In the narrow sense,

59
it means that the employer, employee relationship confines itself to the relationship that emerges

out of the day to day association of the management and the labor. In its wider sense, industrial

relations include the relationship between an employee and an employer in the course of the

running of an industry and may project it to spheres, which may transgress to the areas of quality

control, marketing, price fixation and disposition of profits among others.

The scope of industrial relation is quite vast. The main issues involved here include the following:

1. Collective bargaining

2. Machinery for settlement of industrial disputes

3. Standing orders

4. Workers participation in management

5. Unfair labor practices

Importance of Industrial Relations:

The healthy industrial relations are key to the progress and success. Their significance may be

discussed as under –

60
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. Reduction in Industrial Disputes – Good industrial relations reduces 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, 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.

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.

61
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 employer’s authority. It will naturally have

impact on production because they recognize the interest of each other.

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, it is evident that good industrial relations 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 justice are to be

achieved, there must be harmonious relationship between management and labor.

INDUSTRIAL RELATION POLICY

Prior to 1991, the industrial relations system in India sought to control conflicts and disputes

through excessive labor legislations. These labor laws were protective in nature and covered a

62
wide range of aspects of workplace industrial relations like laws on health and safety of labors,

layoffs and retrenchment policies, industrial disputes and the like. The basic purpose of these

laws was to protect labors. However, these protectionist policies created an atmosphere that led

to increased inefficiency in firms, over employment and inability to introduce efficacy. With the

coming of globalization, the 40 year old policy of protectionism proved inadequate for Indian

industry to remain competitive as the lack of flexibility posed a serious threat to manufacturers

because they had to compete in the international market.

With the advent of liberalization in1992, the industrial relations policy began to change. Now, the

policy was tilted towards employers. Employers opted for workforce reduction, introduced policies

of voluntary retirement schemes and flexibility in workplace also increased. Thus, globalization

brought major changes in industrial relations policy in India. The changes can be summarized as

follows:

• Collective bargaining in India has mostly been decentralized, but now in sectors where it

was not so, are also facing pressures to follow decentralization.

• Some industries are cutting employment to a significant extent to cope with the domestic

and foreign competition e.g. pharmaceuticals. On the other hand, in other industries where

the demand for employment is increasing are experiencing employment growths.

• In the expansionary economy there is a clear shortage of managers and skilled labor.

63
 • The number of local and enterprise level unions has increased and there is a significant

reduction in the influence of the unions.

• Under pressure some unions and federations are putting up a united front e.g. banking.

• Another trend is that the employers have started to push for internal unions i.e. no outside

affiliation.

• HR policies and forms of work are emerging that include, especially in multi-national

companies, multi-skills, variable compensation, job rotation etc. These new policies are

difficult to implement in place of old practices as the institutional set up still needs to be

changed.

• HRM is seen as a key component of business strategy.

• Training and skill development is also receiving attention in a number of industries,

especially banking and information technology.

Measures for Improving Industrial Relations

The following measures should be taken to achieve good industrial relations:

64
• Strong and Stable Union:

A strong and stable union in each industrial enterprise is essential for good industrial

relations. The employers can easily ignore a weak union on the plea that it hardly

represents the workers. The agreement with such a union will hardly be honored by a large

section of workforce. Therefore, there must be strong and stable unions in every enterprise

to represent the majority of workers and negotiate with the management about the terms

and conditions of service.

• Mutual Trust:

Both management and labor should help in the development of an atmosphere of mutual

cooperation, confidence and respect. Management should adopt a progressive outlook and

should recognize the rights of workers. Similarly, labor unions should persuade their

members to work for the common objectives of the organization. Both the management

and the unions should have faith in collective bargaining and other peaceful methods of

settling disputes.

• Workers’ Participation in Management:

The participation of workers in the management of the industrial unit should be encouraged

by making effective use of works committees, joint consultation and other methods. This

will improve communication between managers and workers, increase productivity and

lead to greater effectiveness.

• Mutual Accommodation:

65
 The employers must recognize the right of collective bargaining of the trade unions. In any

organization, there must be a great emphasis on mutual accommodation rather than

conflict or uncompromising attitude. One must clearly understand that conflicting attitude

does not lead to amicable labor relations; it may foster union militancy as the union reacts

by engaging in pressure tactics. The approach must be of mutual “give and take rather

than “take or leave.” The management should be will willing to co-operate rather than

blackmail the workers.

• Sincere Implementation of Agreements:

The management should sincerely implement the settlements reached with the trade

unions. The agreements between the management and the unions should be enforced

both in letter and spirit. If the agreements are not implemented then both the union and

management stop trusting each other. An environment of uncertainty is created. To avoid

this, efforts should be made at both ends to ensure the follow up of the agreements.

• Sound Personnel Policies:

The following points should be noted regarding the personnel policies. The policies should

be:

o Formulated in consultation with the workers and their representatives if they are to

be implemented effectively.

o Clearly stated so that there is no confusion in the mind of anybody.

66
 o Implementation of the policies should be uniform throughout the organization to

ensure fair treatment to each worker.

• Government’s Role:

The Government should play an active role for promoting industrial peace. It should make

law for the compulsory recognition of a representative union in each industrial unit. It

should intervene to settle disputes if the management and the workers are unable to settle

their disputes. This will restore industrial harmony.

• Progressive Outlook: There should be progressive outlook of the management of

each industrial enterprise. It should be conscious of its obligations and responsibilities to

the owners of the business, the employees, the consumers and the nation. The

management must recognize the rights of workers to organize unions to protect their

economic and social interests.

Dunlop's Contribution To Industrial Relations

Dunlop's Model: - One of the significant theories of industrial labor relations was put forth

by John Dunlop in the 1950s. According to Dunlop industrial relations system consists of

three agents – management organizations, workers and formal/informal ways they are

organized and government agencies. These actors and their organizations are located

within an environment – defined in terms of technology, labor and product markets, and the

distribution of power in wider society as it impacts upon individuals and workplace. Within

this environment, actors interact with each other, negotiate and use economic/political

power in process of determining rules that constitute the output of the industrial relations

67
 system. He proposed that three parties—employers, labor unions, and government-- are

the key actors in a modern industrial relations system. He also argued that none of these

institutions could act in an autonomous or independent fashion. Instead they were shaped,

at least to some extent, by their market, technological and political contexts.Thus it can be

said that industrial relations is a social sub system subject to three environmental

constraints- the markets, distribution of power in society and technology.

Dunlop's model identifies three key factors to be considered in conducting an analysis of

the management-labor relationship:

1. Environmental or external economic, technological, political, legal and social forces that

impact employment relationships.

2. Characteristics and interaction of the key actors in the employment relationship: labor,

management, and government.

3. Rules that are derived from these interactions that govern the employment relationship.

Dunlop emphasizes the core idea of systems by saying that the arrangements in the field

of industrial relations may be regarded as a system in the sense that each of them more or

less intimately affects each of the others so that they constitute a group of arrangements

for dealing with certain matters and are collectively responsible for certain results”.

In effect - Industrial relations is the system which produces the rules of the workplace.

Such rules are the product of interaction between three key “actors” – workers/unions,

employers and associated organizations and government.

68
 CHAPTER - III
RESEARCH METHODOLOGY

69
RESEARCH METHODOLOGY -

TOPIC

To study the Industrial Relations in employees of HAL.

OBJECTIVE OF THE STUDY:-

1. To identify relationship needs between employer and employees of HAL.

2. To study the type of grievances which arises in the HAL.

3. To study how to maintain the harmonious relationship and reduce the grievances

RESEARCH TOOLS USED:-

The term analysis refers to the computation of certain measures along with for patterns of

relationship that exists among data group. Therefore, I have used Table, graphs charts &

Questionnaire in our project.

RESEARCH DESIGN:-

Research Design is a conceptual structure with research conducted. There is no unique method,

which can entirely eliminate the elements of under taking. But Research methodology more than

any other procedure can minimize the degree of uncertainty, Thus it reduces the profit ability of

making a wrong choice amongst alternative causes of actions.

This is particularly significant in the light of increasing competitions & growing size, which makes

the task of choosing the best course of action difficult for any business enterprise. It is imperative

70
that any type of organization in the present information coupled with tools of analysis for making

sound decisions which involved minimum risk.

Exploratory method of research was chosen for it helps the collecting summarizing, analyzing

interpreting & presenting data with new ideas & in effective manner.

The goal of exploratory research is to gather primary data & to study the nature of problem & to

suggest possible solution for problem/come up with new ideas.

For this a structured questionnaire is the research instrument used for research works.

UNIVERSE OF THE STUDY:-

The area which has been selected for the study i.e. the company area of 300 workers who has

been selected for this study.

SAMPLE SIZE

Sample size is the selected part of the research area for conducting the research study.

I have taken the sample size of 40 employees for study.

DATA COLLECTION:-

The collection of data is done both from primary & secondary sources.

71
Method Used for data Collection

Primary Data & Secondary data.

In Primary Data there are –

Questionnaire, interview, observation & scheduling.

In Secondary data there are –

Newspaper, magazine, journals, net.

I have collected data for my project report during summer training from

Questionnaire (Primary Data), magazine, report & net (Secondary data).

CONTACT PERSONS:

I have contacted employees of HAL, departmental employees and executive employees who

helped me in making this report.

LIMITATIONS:-

The work study has some limitations in itself. The following were the limitations perceived during

the course of training-

1-Because of limited time period, the view of all the employees couldn’t be taken.

2-Due to lack of proper intelligence, among some of the employees, responses couldn’t be

collected properly and work has been done with some interruption

3.-Since there were no responses from some of the employees, it might have affected the results.

4-My survey has been taken as managerial activity .so some of employees just wanted to

negotiate. They were feeling hesitation in filling the questionnaire.

72
CHAPTER- IV
ANALYSIS & DATA

INTERPRETATION

73
ANALYSIS & DATA INTERPRETATION

1. Are you satisfied with the working environment of your

organization?

Category No. of % of

employees employees

Yes 20 50%

No 17 42.5%

Up to some extent 3 7.5%

Total 40 100%

74
 7.5

YES

50 NO
42.5

UNPREDICTA
BLE

75
Interpretation:

50% of employees are satisfied with the working environment of the organization

while 42.5% do not satisfied with the working environment of organization, and

want improvement in the working environment .

2. Your relationship with your superiors is?

Category No. of % of employees

employees

Excellent 12 30%

Good 10 25%

Satisfactory 18 45%

Total 40 100%
76
 30
EXCELLENT

45 GOOD

SATISFACTOR
Y

25

77
Interpretation:

30% employees say that their relationship with their superiors is excellent while

25% employees have good relationship, and 45% employees have only satisfactory

relationship with their superior.

3. Are you satisfied with grievance handling procedure of the

organization?

Category No. of employees % of

employees

Yes 9 22.5%

No 18 45%

Up to some 13 32.5%

extent 78
Total 40 100%
79
 22.5
32.5 YES

NO

UP TO SOME
EXTENT

45

Interpretation:

22.5% of employees are agreeing with the grievance handling procedure of H.A.L

& 45% are not satisfied with the grievance handling procedure of H.A.L.

80
 4. For the quick settlement of your grievance which procedure should

be follow?

Category No. of % of

employees employees

Bipartite Committee 9 22.5%

Trade Union 11 27.5%

Sectional Head 20 50%

Total 40 100%

81
 22.5
BIPARTILE
COMMITTEE
TRADE UNION
50

SECTIONAL
HEAD
27.5

Interpretation:

22.5% of employees want to go with bipartite committee for the settlement of

grievance handling procedure, 27.5% of employees want to go with the Trade

Union & rest 50% want to go with sectional head.

82
5. Are you aware of the functioning of various committees and

unions/association in your organization?

Category No. of % of

employees employees

Fully 16 40%

Partly 14 35%

Not at all 10 25%

Total 40 100%

83
 25

40 FULLY
PARTLY
NOT AT ALL

35

Interpretation:

40% of employees are fully aware with the functioning of various

unions/association in their organization & 35% are partly agreed with the

functioning of various unions/association in their organization.

84
6. Are your recognized trade union/association is able to resolve your

problem?

Category No. of % of

employees employees

Always 9 22.5

Sometimes 18 45

Never 13 32.5

Total 40 100%

85
 22.5
32.5
ALWAYS
SOMETIMES
NEVER

45

Interpretation:

22.5% of employees are agreeing that they always resolve their problem & 45% of

them say that sometimes they resolve their problem.

86
7. Is your organization following statutory provision given in

factories?

Category No. of employees % of

employees

Yes 18 45%

No 9 22.5%

Up to some extent 13 32.5%

Total 40 100%

87
88
 32.5 YES

45 NO

UNPREDICTAB
LE
22.5

Interpretation:

45% of employees are agreeing that organization is following statutory provision &

22.5% of employees are not agreeing. They say that organization is not following

statutory provision.

89
8. “WELLFARE IS THE BACKBONE OF GOOD INDUSTRIAL RELATION”

Do you agree with this proverb?

Category No. of % of

employees employees

Yes 14 35%

No 18 45%

Up to some 8 20%

extent
Total 40 100%

90
 20

35 YES

NO

UP TO SOME
EXTENT

45

Interpretation:

35% of employees are agreeing that welfare is the backbone of good industrial

relation & 45% are not agreeing with the same statement.

91
9. Are you satisfied with the present statutory and non-statutory

welfare facilities provided by the company?

Category No. of employees % of

employees

Yes 16 40%

No 10 25%

Up to some 14 35%

extent

Total 40 100%

92
 35 YES
40
NO

UP TO SOME
EXTENT

25

Interpretation:

40% of employees are agreeing with the present statutory and non-statutory

welfare facilities provided by the company & 25% of them are dis-agree with the

same statement.

93
10. Which of the following you think is the most important factor

causing Industrial disputes? Rank them.

Category No. of % of

employees employees

Wages 9 22.5

Bonus 6 15

Welfare 12 30

Leave on hour of 5 12.5

work
Indiscipline & 8 20

violence
Total 40 100%

94
 WAGES

20 22.5 BONUS

WELFARE
12.5
15
LEAVE ON HOUR
OF WORK

30 INDISCIPLINE
AND NON
VOILELNCE

Interpretation:

In this situation there are different-2 ideas of employees 22.5% of them are agree

with wages, 15% of them are agree with bonus,30% of them are agree with

welfare,12.5% of them are agree with leave on hour of work & 20% of them are

agree with indiscipline & violence.

95
11. Which type of collective bargaining process would you prefer in

your organization?

Category No. of employees % of

employees

Forceful or 16 40%

conjunctive

cooperative 24 60%

or integrative

Total 40 100%

96
 40
FORCEFUL
COOPERATIVE
60

Interpretation:

40% of employees agree with Forceful or Conjunctive type of collective bargaining

process & 60% of them are agree with Cooperative or Integrative type of collective

bargaining process.

97
12. For workers participation in management the workers representation

of various committees should be?

CATEGORY No. of employees % of

employees

By trade union 26 65%

Do not belong to any 14 35%

union

Total 40 100%

98
99
 35
TRADE UNION

NOT BY TRADE
UNION
65

Interpretation:

35% of employees are agree with trade union & 65% of them are agree with

that employees who do not belong to any trade unions.

13. Which of the following you think is the best mean of motivating an

employee rank them?

100
 Category No. of employees % of

employees

Recognition 9 22.5

Facilities 8 20

Good working 5 12.5

environment

Job Satisfaction 4 10

Job Rotation 6 15

Promotion 8 20

Total 40 100%

101
 RECOGNITION
20 22.5
FACILITIES

GOOD
WORKING
CONDITIONS
JOB
15 SATISFACTION

20 JOB ROTATION

10 PROMOTION
12.5
JOB ROTATION

PROMOTION

Interpretation:

22.5% of employees are agree with recognition, 20% of employees are agree with

facilities,12.5% of employees are agree with good working environment,10% of

employees are agree job satisfaction, 15% of employees are agree job rotation &

finally 20% of employees are agree with promotion.

102
Promotions of employees- (1/10/20005 to 20/7/2008)

Year No of promotions

2005 320

2006 484

2007 506

2008 648

700

600

500
Year 2005
400
Year 2006
300 Year 2007
Year 2008
200

100

X- axis denotes no. of year.

Y- axis denotes no. of employees.

Interpretation-

We can see that the promotion of employees is increasing year after year. There are 320

employees promotion in year 2005, 484 promotion in 2006, 506 promotion in 2007 & 648 in 2008.

Induction of employees - (from 1/10/2005 to 2008)

103
 Year No of induction

2005 9

2006 12

2007 20

2008 52

60

50

40 Year 2005
Year 2006
30
Year 2007
20 Year 2008

10

X- axis denotes no. of year.

Y- axis denotes no. of employees.

Interpretation- We can see that the Induction of employees is increasing year after year. There

are 9 employees Induction in year 2005, 12 Induction in 2006, 20 Induction in 2007 & 52 in 2008.

RECOMMENDATION & SUGGESTION

104
 1. Good promotional policies of workmen and executives should be implemented in the

organization.

2. Industrial relation programs should be time to time in the organization.

3. Better wage and salary structure should be implemented so that the employees can not

compare themselves in the organization.

4. Good career and growth opportunities for workmen 'should be implemented in the

organization.

5. Healthy relations between workers and the management should be developed.

6. More rewards, recognition and incentives should be provided to increase the motivational

level of employees.

7. Proper discipline should be made in the working hours of employees in the organization.

8. The role of wpm is enhanced so that the feeling of recognition is developed between them.

9. Workers should be able to take active part in the decision making process in the

organization.

10. Seminars should be promoted for workmen's so that they are motivated towards their work.

11. Welfare schemes are well established in H.A.L which is helpful in keeping the employee in

motivated state.

LIMITATIONS

105
The work study has some limitations in itself. The following were the limitations perceived during

the course of training-

 Because of limited time period , the view of all the employees couldn’t be

taken.

 Due to lack of proper intelligence, among some of the employees, responses couldn’t be

collected properly and work has been done with some interruption.

 Since there were no responses from the some of employees, if might have

affected the results.

 My survey has been taken as managerial activity .so some of employees just wanted to

negotiate. They were feeling hesitation in filling the questionnaire.

Conclusion

106
On the basis of questionnaire, interview & personal discussions with employees, members &

office bearers of recognized trade union following conclusion has been drawn:

Most of the workers are satisfied with the working environment, which is the barometer of positive

personnel polices orderly collective bargaining machinery & formalized industrial relations

procedure in H.A.L Lucknow Division. The outdated and outmoded laws regulating IR are quite

inefficient and incapable to deal with the dynamic IR situations of H.A.L. This statement can be

qualified by the fact that delay involved in adjudication proceedings & consequent litigation in IR

has become too cumbersome & time consuming often resulting ill – will between management &

union should be resolved by mutual agreements. Collective bargaining mechanism is very

effective in H.A.L

So we can conclude that management should formulate & improve its comprehensive &

integrated policy for Industrial Relations.

BIBLIOGRAPHY

107
BOOKS:-

• DESIGNING AND MANAGING HUMAN RESOURCE SYSTEM

• PERSONNEL MANAGEMENT

REPORT:-

• AUDIT REPORT OF HAL

MAGAZINE:-

• TRAINING MAGAZINE OF HAL

INTERNET:-

• www.hal.india.com

• www.wikipedia.org

108
 APPENDIX

QUESTIONNAIRE

NAME……………………………………………………………………………..

CONTACT NO.………………………………………………………………………………

DESTINATION…………………………………………………………………..

DEPARTMENT………………………………………………………………….

1 . A re yo u sa t isf ied wit h th e wo rkin g en viro n me n t of yo u r o rg a n iza t io n?

A. ye s ( )
B. No ( )
C. up t o so me ext en t ( )

2. Yo u r re lat io n sh ip wit h yo u r su pe rio rs is?

A. E xce lle n t ( )
B. Go od ( )
C. S at isf a cto ry ( )

3. A re you sat isf ie d with g rie van ce p ro ced u re o f t he o rga n izat io n?

A . ye s ( )
B. no ( )
C. u p to so me e xte n t ( )

4. Fo r th e q u ick se t t le me n t o f yo u r g rie va n ce wh ich p ro ce d u re wo u ld you like t o a do pt ?

A . Re f e r to b ip a rt ite co mmit t ee ( )
B . Re f e r to t ra d e u n io n ( )
C. Re fe r t o yo u r se ct ion a l he ad ( )

5. A re you a wa re o f t he fu n ct io n ing o f va rio u s co mmit t e e s a nd un ion s/ a sso cia t ion in yo u r

o rg an iza t ion ?

109
 A. Fu lly ( )
B. Pa rt ly ( )
C. No t at a ll ( )

6. A re you r re co gn ize d t ra de un ion / a sso cia t ion is a b le to re so lve you r p rob le m?

A . A lwa ys ( )
B . S o met ime s ( )
C. Ne ve r ( )

7. I s yo u r o rg an iza t ion f o llo win g sta t ut o ry p ro visio n g ive n in f a ct o rie s?

A. ye s ( )
B. no ( )
C. u p t o so me exte n t ( )

8. “WE LL FA RE IS THE BA CK BO NE O F GO O D I NDUS TRI AL RE LA TI O N” Do yo u ag ree wit h th is

p ro ve rb?
A. Yes ( )
B . No ( )
C. Up to so me e xt en t ( )

9. A re you sat isf ie d with t he p re se nt sta t ut o ry a nd no n -st a tu t o ry we lfa re

fa cilit ie s p ro vide d b y th e co mp an y?
A . ye s ( )
B . No ( )
C. Up t o so me ext en t ( )
10 . Wh ich o f t he fo llo win g yo u th in k is t he mo st impo rt a nt f act o ry ca u sing I nd u st ria l disp ut e r
ran k t he m?

A . Wa g e s ( )
B . B on u s ( )
C. We lf a re ( )
D. L ea ve a nd ho u r o f wo rk ( )
E . I nd iscip lin e & vio le n ce ( )

11 . Wh ich t yp e of co lle ct ive ba rga in in g p ro ce ss wo u ld you p ref e r in yo u r o rg a n iza t io n?

110
 A. Fo rce f u l o r con ju n ct ive ( )
B. co op e ra t ive o r in te g rat ive ( )

12 . Fo r wo rke rs p a rt icip a t ion in ma n ag e men t th e wo rke rs re p re se n ta t ion o f va riou s co mmit t ee s

sh o u ld b e:
A. No min at ed b y t ra de u n io n ( )
B. E le ct ed b y a ll wo rke rs in clud in g th ose who do no t be lon g t o an y u n io n ( )

13 . Wh ich o f t he fo llo win g yo u th in k is t he b est mea n of mot iva t ing a n e mp lo ye e ra n k th e m?

A. Re co gn it io n ( )
B. Fa cilit ie s ( )
C. G oo d wo rk e n viron me n t ( )
D. Job sa t isfa ct ion ( )
E. Jo b rot a t io n ( )
F. p ro mot io n ( )

DATE………….. SIGNATURE………………..

Request note: - All these details and data are only for study purpose all your

information will be keep confidential.

THANKYOU

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