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PROJECT REPORT ON

“REINTEGRATION OF OPERATIONAL
STAFF AND DEVELOPMENT OF
EMPLOYEE SYNERGY”
A case based analysis of union history of OTIS Delhi and the best industry practices so as
to suggest ways for operational reintegration of employees and development of synergy
between them and to formulate future plan of action to reduce other issues arising
between union and Management.

UNDER THE GUIDANCE OF


Dr. BINDU CHABBRA
ASSOCIATE PROFESSOR
LBSIM, New Delhi

BY
B R UMESH
ROLL NO. 072497028
COURSE CODE: MP

© Indira Gandhi National Open University, New Delhi Page 1


ACKNOWLEDGEMENT
I am extremely grateful Dr. Bindu Chabbra for providing us the honor of carrying out the
project, which helped us to put our learning’s into experience. Without her guidance i
would not have been able to proceed with our project in the right direction.
I would like to express our sincere regards to the staff of OTIS INDIA, New Delhi,
whose help and guidance enabled us to complete the Project on “REINTEGRATION OF
OPERATIONAL STAFF AND DEVELOPMENT OF EMPLOYEE SYNERGY”.
I would also like to thank our Teachers, Mentors, Family, Friends and Relatives who
have helped us and supported us in all possible ways.
A Project report needs co-operation, guidance and experience of many more people other
than whose name appears on the cover, i would like to thank each and everyone who
have helped us in our endeavor.

© Indira Gandhi National Open University, New Delhi Page 2


UNDERTAKING
I have completed the Study Project titled “REINTEGRATION OF OPERATIONAL
STAFF AND DEVELOPMENT OF EMPLOYEE SYNERGY” under the guidance of
Dr. Bindu Chabbra. This is an original piece of work & I have neither copied it and
nor submitted it earlier elsewhere.

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CONTENTS
ACKNOWLEDGEMENT.......................................................................................2
UNDERTAKING..................................................................................................3
INTRODUCTION AND BACKGROUND................................................................7
1.1 HUMAN RESOURCE DEPARTMENT (HRD):................................................7
1.1.1 IDEAL HUMAN RESOURCE VISION:....................................................7
1.2 INTRODUCTION TO INDUSTRIAL RELATIONS & DISPUTES ......................8
1.2.1 INUSTRIAL RELATIONS IN A NUTSHELL:.............................................8
1.2.2 CONCEPT OF INDUSTRIAL RELATIONS:..............................................8
1.2.3 PARTIES IN I.R.:.................................................................................9
1.2.4 IMPORTANCE OF I.R.:........................................................................9
1.2.5 INTRODUCTION TO INDUSTRIAL DISPUTES.....................................11
INDUSTRY ANALYSIS.......................................................................................15
1.3 INDUSTRY INTRODUCTION....................................................................15
1.3.1 WORLD PERSPECTIVE......................................................................15
1.4 COMPETITOR ANALYSIS.........................................................................18
1.4.1 OTIS................................................................................................ 18
1.4.2 SCHINDLER.....................................................................................19
1.4.3 THYSSENKRUPP...............................................................................19
1.4.4 FUJITEC............................................................................................19
1.4.5 KONE...............................................................................................20
1.5 INDIAN PERSPECTIVE.............................................................................20
1.5.1 INTRODUCTION...............................................................................20
1.5.2 THE EVOLUTION OF ELEVATOR IN INDIA.........................................20
1.5.3 THE OPPORTUNITY..........................................................................21
1.5.4 UPGRADING FOR TOMORROW.........................................................22
1.5.5 THE INNOVATION............................................................................22
COMPANY PROFILE.........................................................................................23
1.6 OTIS ELEVATORS INDIA LIMITED...........................................................23
1.6.1 COMPANY HISTORY (GENERAL).......................................................23
1.7 COMPANY VISION..................................................................................24
1.8 VALUES THAT GUIDE THE WORK BEHAVIOUR.......................................24
1.9 SERVICE EXCELLENCE...........................................................................25
OBJECTIVE......................................................................................................26

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1.10 PRIMARY OBJECTIVE –..........................................................................27
1.11 SECONDARY OBJECTIVE-.....................................................................27
1.12 TERTIARY OBJECTIVE-..........................................................................27
AREAS COVERED............................................................................................27
SCOPE OF THE STUDY...................................................................................28
ASSUMPTIONS:...............................................................................................29
RESEARCH METHODOLOGY............................................................................30
1.13 DURATION OF THE PROJECT...............................................................31
LITERATURE REVIEW......................................................................................32
1.14 INTRODUCTION...................................................................................32
1.15 MODELS OF MEDIATION......................................................................32
1.16 GLOBAL TRENDS IN MEDIATION..........................................................36
1.17 EMPLOYMENT DISPUTE RESOLUTION (EDR): THE CASE FOR MEDIATION
.................................................................................................................... 37
1.18 FUTURE FOCUS....................................................................................38
1.18.1 CONCLUSIONS...............................................................................38
DATA ANALYSIS..............................................................................................39
1.19 HISTORICAL OVERVEIW (FILE DOCUMENT DELHI UNION)....................39
1.20 THE INDUSTRIAL RELATION TENSION GRAPH –...................................42
1.21 PRIMARY DATA ANALYSIS....................................................................45
1.21.1 Q.1 ..............................................................................................46
1.21.2 Q.2 ..............................................................................................46
1.21.3 Q.3 ...............................................................................................46
1.21.4 Q.4 ..............................................................................................47
1.21.5 Q.5 ..............................................................................................48
1.21.6 Q.6 ..............................................................................................48
1.21.7 Q.7 ..............................................................................................49
1.21.8 Q.8...............................................................................................50
1.21.9 Q.9 ..............................................................................................51
1.21.10 Q.10 ...........................................................................................51
1.21.11 Q.11............................................................................................52
1.21.12 Q.12 ...........................................................................................52
1.21.13 Q.13 ...........................................................................................53
1.21.14 Q.14 ........................................................................................53
1.21.15 Q.15............................................................................................54

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1.22 INTERPRETATION................................................................................55
1.23 FACTS AND FINDINGS.........................................................................55
1.24 INDUSTRIAL RELATIONS IN OTIS..........................................................56
1.25 COMMUNICATION BETWEEN WORKERS & MANAGEMENT:..................56
1.26 OVERALL REALTIONS BETWEEN WORKERS & MANAGEMENT: ............58
1.27 GRIEVANCE PROCEDURE: ...................................................................58
1.27.1 OTIS Grievance Procedure............................................................58
1.28 CAUSES OF INDUSTRIAL DISPUTES IN OTIS:........................................60
1.28.1 WAGES AND ALLOWANCES...........................................................60
1.28.2 INDISCIPLINE................................................................................60
1.28.3 OVERTIME.....................................................................................60
1.28.4 LEAVE AND WORKING HOURS.......................................................60
1.28.5 WORKING CONDITIONS/ENVIRONMENT.........................................61
1.28.6 MISCELLANEOUS..........................................................................61
1.29 GENERAL CONCLUSION.......................................................................61
1.30 RECOMMENDATION & SUGGESTIONS FROM SURVEY.........................62
RECOMMENDATIONS & CONCLUSIONS (ACTION POINTS)...............................63
1.31 FAMILY SOCIALIZATION ACTIVITY- ......................................................63
1.32 SOCIAL CAUSE-....................................................................................64
1.33 FAMILY INTEGRATION ACTIVITY-..........................................................64
1.33.1 HEALTH CHECK UPS –....................................................................64
1.33.2 EMERGENCY AID REGISTER-..........................................................64
1.34 CONTRIBUTION POLICY IN CASE OF ACCIDENT: .................................65
1.35 BEHAVIORAL TRAINING TO FIELD EXECUTIVES: .................................65
1.36 SENSITIVITY TRAINING FOR RESPECT: ................................................65
1.37 EQUITY AND FAIRNESS BRANDING: ....................................................65
1.38 VOLUNTEER PROGRAM: ......................................................................65
1.39 DIRECT RECRUITMENT: ......................................................................65
1.40 SAY MEET: ..........................................................................................66
LIMITATIONS...................................................................................................66
BIBLIOGRAPHY................................................................................................67

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INTRODUCTION AND
BACKGROUND
1.1 HUMAN RESOURCE DEPARTMENT (HRD):
The Human Resource Department (HRD) forms an integral part of any company. This
department is not only responsible for managing the workforce, but also takes charge of
maintaining cordial relations among all its members. The crucial task of the Human
Resource Department is to acquire, maintain, develop, supervise and measure the human
assets and the results of their work (quality, productivity and service). This measurement
includes a combination of strategic and operational measures that reflect the:
1. Efficiency and effectiveness of internal processes,
2. Customer satisfaction,
3. Cost effectiveness
4. Innovation
5. Satisfaction of the employees

The three broad categories of measurement are:


1. Acquisition of human assets
2. Maintaining human assets
3. Supporting human assets

1.1.1 IDEAL HUMAN RESOURCE VISION:

1. To provide growth and opportunity for all employees, in line with the company's
growth depending upon their ability and merit.

2. To encourage fair dealings both within and outside the company, and maintain highest
standards of honesty and integrity in business and personal dealings.

3. To encourage professional and disciplined working at all levels in the company and to
set a personal example for subordinates.

4. To encourage "teamwork" and "team building, so that the fruits of growth can be
shared by all.

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5. To provide training to all the employees so that they become an integral part of the
efforts to achieve excellence in the present working culture.
6. The aim is to be an integral part of the global family.

1.2 INTRODUCTION TO INDUSTRIAL RELATIONS &


DISPUTES
1.2.1 INUSTRIAL RELATIONS IN A NUTSHELL:

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).

1.2.2 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.

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 union in the
company. Industrial relations are basically the interactions between employers,
employees and the government, and the institutions and associations through which such
interactions are mediated.

Thus in our case industrial relations have a broad as well as a narrow outlook. Originally,
industrial relations were broadly defined to include the relationships and interactions
between workers and management. 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 non union employment relationships and the personnel practices and policies of
employers. Thus we can say that human relations and industrial relations are two separate
functions. The relationships which arise at and out of the workplace generally include the
relationships between individual workers, the relationships between workers and
management, the relationships employers and workers have within this organization are
formed to promote their respective interests, at all levels. Industrial relations also includes
the processes through which these relationships are expressed (such as, workers’
participation in decision-making, and grievance and dispute settlement), and the
management of conflict between employers, workers and trade unions, when it arises.

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1.2.3 PARTIES IN I.R.:

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


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.
Three main parties are directly involved in industrial relations:
1. Employers: Here employer refers to the company, which provides employment to the
different people on the basis of their qualification, skills, knowledge etc. 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.

2. Employees: Workers seek to improve the terms and conditions of their employment.
The workers exchange their views with management and voice their grievances. They
also want to share decision making powers of management. This sharing in decision
making is strictly related only to safety measures and canteen facilities in the company.
Workers have formed unions against the management and fully support each other on
every issue. .

3. Government: The central and Rajasthan state government influences and regulates
industrial relations through laws, rules, agreements, awards of court etc. It also includes
third parties and labor and tribunal courts.

1.2.4 IMPORTANCE OF I.R.:

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Industrial relations are an important part of each and every organization and in the same
way it plays a vital role in smooth functioning of production and other management
processes. It is the collection of rules and regulations, set of standards regarding the
working conditions. This term consists a wide variety of practices according to internal
and external environment of the company. The healthy industrial relations are the key to
the progress and success. Industrial relations thus have following significance:
1.2.4.1Uninterrupted production/service –
The most important benefit of industrial relations is that this ensures continuity of
production/service. This means, continuous employment for all from manager to workers.
The resources are fully utilized, resulting in the maximum possible production.

1.2.4.2Reduction in Industrial Disputes –


Good industrial relations 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. Since from the
establishment of the company in bhiwadi there were no strikes, lockouts, gheraos,
but workers has slows down the production process generally. It also helps in
promoting co-operation and increasing production in the company.
1.2.4.3High morale –
Good industrial relations improve the morale of the employees. Employees work
with great zeal with the feeling in mind that the main objective of the company and
the workers is the same, i.e. to increase production of taps. Every worker feels that
he is a co-owner of the gains of the company. The company in his turn realizes that
the gains of company 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.
1.2.4.4Mental 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 think themselves as partners of the company and the role of
workers in such a partnership is always recognized. On the other hand, workers
recognize employer’s authority. It will naturally have impact on production because
they recognize the interest of each other.
1.2.4.5Reduced Wastage –
Good industrial relations are maintained on the basis of cooperation and recognition
of each other. It will help in increase the production. Wastages of man, material and
machines are reduced to the minimum by making good overall relations between
workers and management in PRPL. Thus national interest is protected.

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1.2.5 INTRODUCTION TO INDUSTRIAL DISPUTES

Conflict, as one of the feature of industrial relations, is a general concept. When it


acquires a concrete and specific manifestation, it becomes an industrial dispute, that is,
industrial conflict is general, and where as industrial dispute is specific. Industrial dispute
is said to be disagreement or controversy between management and labor with respect to
wages, working conditions, other employment matters or union recognition. Such a
dispute may include controversies between rival unions regarding jurisdiction also. There
can be as many industrial may cover many issues of conflict. When issues of conflict are
submitted to the management for negotiation, they take the form of industrial disputes.
Therefore, the specific causes of industrial conflict may be treated as causes of industrial
disputes also.

The disputes between employer and employer both and vitiate the industrial atmosphere
and peace. Whether these tactics are successful or unsuccessful, unpleasantness is created
between both the parties. The worst result ins the loss of production and decline in natural
income. Industrial dispute is defined by Section 2 (x) of the Industrial Disputes Act 1947
as follows:-
Industrial disputes is “Any dispute or difference between the employers and employees,
or between employs workmen, or between workmen and workmen, which is connected
with the employment or unemployment or the terms of employment or with the
conditions of labor of any person.

* There must be following ingredients of an industrial dispute:

1. there must be a relationship of employer and employee.

2. The worker must be on the roll list of the industry.

3. The demands of the workers must have been rejected by the employer.

4. The dispute may be between two employers or between two employees.

5. The dispute may be connected with employment or terms of employment or with labor
conditions of any person.

6. The industrial unit must be a going concern. It must not be dead.

1.2.5.1SPECIFIC CAUSES OF INDUSTRIAL DISPUTES:

In the background of the general foregoing comments, it would facilitate understanding if


the causes of industrial disputes or industrial conflict were definitely categorized and
specified. A grief illustrative check list of the specific causes of industrial disputes is
given below:

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1.2.5.1.1 ECONOMIC

1.2.5.1.1.1 Division of the fruits of the industry


A. Wage structure and demands for higher wages
B. Methods of job-evaluation
C. Deduction from wages
D. Incentives
E. Fringe benefits
1.2.5.1.1.2 Methods of production and physical working conditions
A. Working conditions
B. Technology and machinery
C. Layouts
1.2.5.1.2 Terms of employment

Hours of work, shift working, promotion, demotion, layoff, retrenchment, job-


security, retirement, etc.

1.2.5.1.3 INSTITUTIONAL
A. Recognition of unions
B. Membership of union
C. Subject of collective bargaining
D. Bargaining unit
E. Union security
1.2.5.1.4 PSYCHOLOGICAL
A. Clash of personalities
B. Behavioral maladjustments
C. Authoritarian administration
1.2.5.1.5 DENIAL OF LEGAL AND CONTACTUAL ROGHTS
A. Non-implementation of labor laws and regulations, standing orders, and so on.
B. Violation of collective bargaining agreements, customer rights and privileges and
so on.

The points of contact between the employer and employees are so numerous that no
exhaustive list can be prepares. Besides, the check list contains the main causes of
industrial disputes but does not indicate their relative importance as causative factors. If
industrial disputes were to be classified on the basis of causes and their relative
importance, it would be found that their relative importance would vary from country to
country and in the same country from time to time. In one country, at one time, wages
may constitute the single main source of industrial disputes, whereas at a different time or
in a different country, the relative importance of wages may decline and some other issue
may become more important. In which country and at what time, which issue will
become predominant will depend upon the importance of the workers attach to their
problems, within the prevailing economic and political climate. In the earlier stages of
industrial development, wages were the most important cause of industrial conflict. In
times of unionization, issues relating to recognition of unions and union security may
figure more often in the industrial disputes.

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1.2.5.2METHODS FOR SETTLING INDUSTRIAL DISPUTES:
The various methods available for settlement of industrial disputes can be broadly
classified into two categories:

1.2.5.2.1 SETTLEMENT OF DISPUTES WITH STATE INTERVENTION:

The state has stipulated certain methods to resolve industrial disputes. They are:

A. COMPULSORY COLLECTIVE BRGAINING:

It has been enforced by an amendment of the INDUSTRIAL DISPUTES Act of 1947


Made in 1982. This amendment has made collective bargaining compulsory. I.e. no party;
either the employers or the employees can say no to collectively bargain if the other party
is willing to do so.

B. ESTABLISHMENT OF BI-PARTITE BODIES:

Works Committees are constituted in organizations having more than 100 employees.
They have equal representation of the employers and employees. The employee
representation can be even more than the employer representation in the works
committee. The main objective of the work committee is to promote measures for
preserving good relations among employers and employees.

C. COMPULSORY CONCILIATION AND MEDIATION:

The main features of this method are:

1. It is a tripartite in nature

2. State sets up the conciliation machinery. Generally the Labor Commissioner is


appointed as the conciliating officer.

3. The conciliating officer would act as a mediator between the two aggrieved parties and
would try to reach an amicable solution between them.

4. On failure of conciliation, the conciliator sends to the industrial relations desk of the
ministry of labor informing it about the failure of conciliation. The state would then refer
the matter to a suitable adjudicator. .

COMPULSORY INVESTIGAION:

Under sec 6 (Industrial Disputes Act 1947), both central and state government may
constitute a ‘court of inquiry’ for ‘enquiring into any matter appearing to be connected
with or relevant to an industrial dispute. The court of inquiry has same powers as are
vested in a civil court under the code of civil procedure.

E. COMPULSORY ARBITRATION OR ADJUDICATION:

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When all other matters of resolving conflicts are exhausted the state may refer the matter
for adjudication. The method of adjudication involves two principals based on nature and
reward for the issue under consideration:

1. Compulsory reference but voluntary acceptance of award.

2. Compulsory reference and compulsory acceptance of award.

I.e. the conflicting parties have the option of accepting or rejecting the award given by
the

Adjudicator.

1.2.5.2.2 SETTLEMENT OF DISPUTES WITHOUT STATE INTERVENTION:


A. COLLECTIVE BARGAINING (WITH / WITHOUT CONCILIATION)

B. VOLUNTARY ARBITRATION

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INDUSTRY ANALYSIS
1.3 INDUSTRY INTRODUCTION

1.3.1 WORLD PERSPECTIVE


1.3.1.1INTRODUCTION – ELEVATORS
Elevators have become an integral part of any building facility over the past few decades.
In our everyday life, we depend on them for vertical transportation in offices, schools,
public buildings, airports, sub-stations etc. With over 4 million elevators in operation
today, it accounts for an important facet of the building industry. To gain some idea of
the effect of this one advancement, consider that today, elevators move the equivalent of
the world’s population every 72 hours. Thus, it is unarguably an important sector of the
building industry and a worthy topic of research. (Elevator Introduction, 2009)
Globally, there are 5 major players – Otis, Schindler, Thyssen-Krupp, Kone and Fujitec
dominate the elevator market. Each of these has an annual turnover of over a billion
dollars and is densely spread out throughout the country. With numerous offices,
hundreds of projects running simultaneously and a huge inventory of men, materials and
machinery, it makes good sense to have state-of-the art information trafficking and
computerization. Otis is the largest producer of elevators and escalators in the world with
an annual sale of $6.3 billion in 2001. They have about 22% of the market share and
supply products to 220 countries. Within the US, their business amounts to more than
$1.5 billion and they have a workforce of about 9000 people. Otis spent over $100
million on research and development in 2001. This will give an idea of the scale on
which each of these 5 giants function.
Another key thing to note here would be that all of these companies also manufacture and
install escalators and moving walkways. They also provide service and maintenance for
elevators and escalators on a contract basis. Otis alone services about 1.2 million
elevators and escalators worldwide. (otis and competitors, 2009)
1.3.1.2BACKGROUND – HISTORY OF ELEVATORS
An elevator is a device for vertical transportation of passengers or freight to different
floors or levels, as in a building or a mine. The term elevator generally denotes a unit
with automatic safety devices; the very earliest units were called hoists. Elevators consist

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of a platform or car traveling in vertical guides in a shaft or hoist way, with related
hoisting and lowering mechanisms and a source of power. Rudimentary elevators, or
hoists, were in use during the middle ages and can be traced back to the third century BC.
They were operated by animal and human power or by water-driven mechanisms.
The power elevator debuted mid-19th century in the U.S. as a simple freight hoist
operating between just two floors in a New York City building. In 1853, Elisha Graves
Otis was at the New York Crystal Palace exposition, demonstrating an elevator with a
"safety" to break the cab's fall in case of rope failure, a defining moment in elevator
development. By 1857, the country's first Otis passenger elevator was in operation at a
New York City department store, and, ten years later, Elisha's sons went on to found Otis
Brothers and Company in Yonkers, NY, eventually to achieve mass production of
elevators in the thousands. Today, Otis is the world’s largest elevator manufacturer.
In 1889 came the direct-connected geared electric elevator, allowing for the building of
significantly taller structures. By 1903, this design had evolved into the gearless traction
electric elevator, allowing hundred-plus story buildings to become possible and forever
changing the urban landscape. Multi-speed motors replaced the original single-speed
models to help with landing-leveling and smoother overall operation. Electromagnet
technology replaced manual rope-driven switching and braking. Push-button controls and
various complex signal systems modernized the elevator even further and safety became
an integral part of the design. The year 1926 saw the birth of the modern elevator in the
Woolworth building, then the tallest building in the world. The progress in this field has
been astonishing ever since, and today we have intelligent elevator systems that can be
remotely tracked for maintenance and rework. (Elevator History,2009, 2009)
1.3.1.3EXISTING PROCESSES
After the decision to install an elevator is taken, the following people are involved till the
completion stage. The owner makes the decision, and with the help of Architect and
Structural Engineer decides the requirements of the building. This information is then
passed on to the General Contractor who becomes the liaison between Owner and
Elevator manufacturer. In bigger facilities, the General Contractor may also have a Sub-
contractor who may refer to an Elevator Consultant. (Fig. 2)
It is a common practice to finalize on the elevator design during the pre-construction
stage. This allows the building construction and elevator production to run in parallel.
The Owner makes the decision to install an elevator of an array of elevators in the to-be-
built facility. This decision is taken prior to commencement of work on the site. For the
same, he will hire a General Contractor (GC) to co-ordinate all the work and interact with
the Structural Engineer, Electrical Engineer, Elevator Manufacturing Company and other
Sub-Contractors. Depending on the budget allocated for elevators, the architect and
structural designer will suggest the optimum elevator layout to the owner. The owner will
pass this information to the GC who will then prepare a Tender Document to invite bids
from various sub-contractors. After the sub-contractors submit their bids, the GC will
select the most appropriate ones and award the contract applicable to them. One of the
sub-contractors will get in touch with an elevator manufacturing company, like say Otis
or Schindler, and place a word order as per requirements supplied.
Manufacturing of elevators again may be broadly classified in 2 types:

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• Global giants such as Otis, Schindler, Kone and
Thyssen-Krupp
• Small local manufacturers

Of these, the earlier occupy a very large part of the market share and offer the
latest in design and safety. They are already using a lot of computer-assisted
tools for design, manufacture, assembly, maintenance and rework of elevators.

After the elevator has been manufactured, it may be installed into the building at the
appropriate time during its construction schedule. This co-ordination is also the
responsibility of the GC who is in contact with the Elevator Contractor. After installation
of the system, the GC will obtain a working permit from a Licensing Inspector so that the
elevator is now ready for use. (Fig. 3)
In this process, there are 2 key areas where flow of information is enormous and multi-
directional:
General Contractor
Manufacturing
Adoption of IT in these sectors results in saving of time, more discreet information flow,
and better communication. The long term benefits include a more economical overall
process and less rework.

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It has been seen that companies today offer fully integrated scheduling, engineering,
production and installation under one roof. Once the order has been placed with the
elevator company, they have highly sophisticated tools that will schedule the activities,
makes designs and 3-D models, manufacture the parts and then hire sub-contractors who
will install it on the site. (Fig. 4)
This section is typically supposed to analyze the available 3-D modeling tools and
suggest the appropriate ones for the elevator industry. On studying this sector and talking
to several people in the industry, it was found that the elevator industry has already
surpassed this stage and has gone ahead to develop tailor-made software and modeling
tools as per specific requirements. Most big companies have extensive on-going research
and are heavily investing in adoption of information technology. Also, they have moved
to 4-D modeling, wherein they can visualize the elevator model and working at various
stages of time. Some of the new technologies implemented by the industry giants are
described below.

1.4 COMPETITOR ANALYSIS


1.4.1 OTIS

The market leader, Otis has successfully implemented high-end graphics and cutting –
edge technologies to become #1 in the world. Apart from having developed design and
modeling tools, they have also employed IT to predict problems and tackle them at an
early stage to save on time later. Avoiding potentially costly elevator problems can be
achieved through early planning. Hoist way modeling algorithms allow anticipation of
complications that might arise from rope sway - a phenomenon that occurs in high-rise
buildings. To facilitate this planning process, Otis has developed a special program called
the OTISPLAN®. A design and evaluation tool, it simulates the actual operation of the
building's vertical transportation system and proposes the optimal traffic handling
solution. (Otis product details, 2009)
Another interesting application developed by Otis is their remote monitoring system.
Developed to optimize performance and minimize downtime, Remote Elevator
Monitoring — REM® — tracks hundreds of system functions on thousands of elevators
around the world. The REM system identifies most problems before they occur. REM
detects deteriorating components and intermittent anomalies, and notes the small
nuisances that might have gone undetected until they caused service disruptions.
Intermittent problems are fixed before they annoy the tenants.

A Diagnostic software monitors elevators continuously and sends data to the REM
unit located in the machine room.
B The REM unit sends this information to the OTISLINE center.
© Indira Gandhi National Open University, New Delhi Page 18
C Data is categorized by urgency and reviewed by OTISLINE
representatives. D An OTISLINE representative alerts the field mechanic, if
necessary.
E The mechanic arrives at the job site with specific information, tools and parts to work
on the elevator. (Otis Innovation, 2010)

1.4.2 SCHINDLER

Schindler is the second largest elevator manufacturer, and among the leaders in elevator
design using computer-based modeling. They are currently working on automation
software that will eliminate actual models, and be able to design and simulate elevators
using a computer. Some such commercial products available are Schindler Draw and
Schindler Spec. The best part about these products is that they work online and can be
customized as per user requirement.
Schindler Draw is the industry's first automated, interactive drawing program for
hydraulic elevators, escalators and moving walks. The program simplifies drawing time
and eliminates time-consuming manual layouts. The drawings are customized to your
particular building. No boilerplate drawings here. The final drawing can be viewed,
printed and inserted into building layouts and other documents, thereby shortening the
approval process. Schindler Draw works online, or can be downloaded to your computer.
It's also available on CD-ROM. Schindler Spec is an interactive architect's tool that
customizes specifications to individual buildings. Like Schindler Draw, it works online,
or can be downloaded to your computer. It is also available on CD-ROM. (schindler
history, 2010)

1.4.3 THYSSENKRUPP

Apart from having developed software and networking for scheduling, production and
fabrication, they are now expanding into remote monitoring of elevators. This will enable
their engineers to gather information about any elevator installed from their mainframe,
which continuously tracks installed elevators worldwide. Thus, the engineer can simply
go to any site, obtain relevant data on his laptop or PDA and even compare with similar
platforms from their database. Particular progress in this area has been made in Germany,
France, Belgium and the USA, where customer-focused service concepts such as Tele-
W@tch, POP or TAC20 utilize the internet, e-mail, text messaging and other IT
technologies. The Tele-W@tch system records the frequency with which individual
elevators are used; customers can view this information on the Internet and use it to plan
service call-outs. POP is a service concept, which records all relevant service and repair
information and presents it clearly to customers in the form of a service history. In the
USA we developed the TAC20 monitoring system for hydraulic elevators, which facility
managers and service engineers can use to continuously check the serviceability and
technical condition of their installations. (Thyssenkrupp Index, 2010)

1.4.4 FUJITEC

Fujitec America, Inc.'s Elevator Monitoring System (EMS™) is a sophisticated


state-of-the-art, PC-based system designed as a comprehensive elevator

© Indira Gandhi National Open University, New Delhi Page 19


management device. Developed from the highest standards of quality
synonymous with the name Fujitec, the Elevator Monitoring System contains
distinctive graphical representations, interactive communication features,
precise data accumulation capabilities and advanced event logging
characteristics to satisfy a wide range of customer monitoring requirements.
(Fujitecamerica Mordenization, 2010)

An animation of computerized installation of an elevator can be found at the


link below. It shows the application of 4-D modeling and emphasizes that the
Contractor really need not know detailed specs of the elevator unit.
(Fujitecamerica Animations, 2010)

1.4.5 KONE

KONE provides innovative and eco-efficient solutions for elevators, escalators and
automatic building doors. We support our customers every step of the way; from design,
manufacturing and installation to maintenance and modernization. KONE is global
leaders in helping the customers manage the smooth flow of people and goods throughout
their buildings.

KONE’S commitment to customers is present in all KONE solutions. This makes them a
reliable partner throughout the life-cycle of the building. They challenge the conventional
wisdom of the industry. They are fast, flexible, and we have a well-deserved reputation as
a technology leader, with such innovations as KONE MonoSpace®, KONE
MaxiSpace™, and KONE InnoTrack™. One can experience these innovations in
architectural landmarks such as the Trump Tower in Chicago, the 30 St Mary Axe
building in London, the Schiphol Airport in Amsterdam and the Beijing National Grand
Theatre in China and Delhi Metro Rail Stations in India.

KONE employs over 32,000 dedicated experts to serve customers globally and locally in
50 countries. (Kone details, 2010)

1.5 INDIAN PERSPECTIVE


1.5.1 INTRODUCTION

Elevators are the lifeline of today's high-rise structures, and they're getting smarter, better
looking and more efficient.
As floor space in cities around the world becomes scarcer and dearer, buildings are being
forced to go vertical. If the ground doesn't allow it, the sky is there to be exploited.
Structures are reaching heights one could never imagine and to reach higher, elevators,
the lifeline of any tall building, are getting faster & smarter. The vertical transportation
industry would like us to know: "We move the equivalent of the world's population every
three days." It's no idle boast. Today, elevators are no longer restricted to five-star hotels
or high rise structures. Your favorite departmental store too may have a fancy 'bubble
elevator' - impressive both in terms of looks and utility.

1.5.2 THE EVOLUTION OF ELEVATOR IN INDIA


© Indira Gandhi National Open University, New Delhi Page 20
In India, elevators have been in use since the beginning of the 19th century. One of the
first installations from that time, in Kolkata's Raj Bhavan, is still functional today. Until
the mid 1950s, elevators were mainly imported and installed locally by a number of
manufacturers. In 1954, Otis Elevator Co (I) Ltd was established in Mumbai. In turn,
other companies were established over the next two decades, such as Bharat Bijlee's
elevator division, Best & Crompton, ECE Industries, Johnson, etc. Many local players in
each region have also emerged in the past couple of decades, and some of them have
evolved into national players.
Currently, the market size for elevators supplied to new building installations is estimated
to be around 19-20,000 units per annum. Approximately 50-55 per cent of this market
constitutes elevators with manual entrances and 40-45 per cent comprises elevators with
automatic doors. Manual entrance elevators normally have speeds up to 0.8 mps while
speeds of automatic door elevators are predominantly in the 0.7mps and higher range (4.0
mps is presently installed in India), and can go up to 12.0 mps and higher for taller
buildings, as installed in Japan and Korea.
Right now, elevators installed in India are 1.0 mps for buildings up to 12 storeys; 1.5/1.75
mps up to 20 storeys; and 2.5 mps over 20 storeys. Above 2.5 mps, gearless machines are
used - at speeds below this, geared AC machines are used. Until about five years ago,
gearless machines used DC drives, which are still used today world over in high-rise
applications, but in India the trend is towards AC with variable voltage variable
frequency (VVVF) drives, as these are known to be energy-efficient. Speeds are expected
to increase as buildings grow taller in India. Automatic door elevators are safer and
recommended by inter-national building codes and the Indian market is gradually
showing an upward shift towards automatic entrances.
On January 1, 1997, the Bureau of Indian Standards banned the use and sale of
collapsible-door elevators. The step was taken following the insistence of elevator makers
that the collapsible gates were hazardous (during incidents such as fire, and for children
who tend to put their hands between the bars of the collapsible gates). All such lifts were
to be fitted with imperforated solid or automatic doors within the next five years. The
catch: implementation of the standards was left up to each individual state. So far, only
three states in South India have complied and some manufacturers have ceased supplying
elevators with collapsible gates.

The challenge with the lower-end market segment is to convert it from a dependence on
manual elevators to a desire for fully automatic units. The market is also progressively
shifting from low-mid rise to mid-high rise in the metro cities. This creates a phenomenal
opportunity for the elevator industry to raise quality standards of the units installed and
make operation safer.

1.5.3 THE OPPORTUNITY

Most major global elevator manufacturers have a presence in India. Otis, Kone,
Schindler, ThyssenKrupp- ECE, Mitsubishi, Fujitech, Dong Yang and Hyundai are just
some of the players already here with talk of other big names also entering the market.
The total market size is estimated to be about Rs 2,500 crore annually. Some of these
players have local manufacturing facilities while newer players rely on imports,
particularly at the upper end of the market. Earlier, Otis was the market leader with

© Indira Gandhi National Open University, New Delhi Page 21


approximately 55-60 per cent market share but with the expansion of the market, that
share has fallen to about 30-35 per cent. Currently, the market leader in terms of size is
Kone who recently bought out Bharat Bijlee's elevator division.
India has also become a base for the service-related industry. Large global organisations
have set up shop here owing to the availability of skilled labour at a comparatively low
cost. Their expectations are that properties must have global quality standards of
amenities and facilities, particularly newer buildings under construction. There is a trend
of overseas architects establishing themselves in the country, and now that FDI in
construction has been permitted, it is expected that the standard of end products will only
improve. Further, thanks to buoyant GDP growth, which is expected to continue at a rate
of around 7 per cent over the next five to 10 years, the market is expected to grow to
about 30-35,000 units during this period. The existing installed base across the country is
estimated to be in the range of 90,000 plus units; contrast this with China, which has an
installed base of approximately 150,000 units and a current market size of about 75-
80,000 units per annum. The metamorphosis of the market can be judged by having a
look at industry growth, which has increased from approximately 14,000 units to about
19,000 units over the past three years.

1.5.4 UPGRADING FOR TOMORROW

Apart from the growth in new construction, where there are many exciting high-rise
building and mall projects coming up in and around metro cities, other sides of the
business driving the market will be the upgrade and replacement of existing lifts and
service contracts. Modernization presents a mammoth opportunity in upgrading the
existing base and consequently most leading elevator companies have established their
own modernization departments to upgrade their existing installed elevator
bases. Overall, upgrading of lifts is expected to generate fresh business worth about Rs 1
billion over the next five years, according to the Economist Intelligence Unit.
Modernization can be classified as an upgrade involving the retention of existing
components, with some new subsystems being incorporated, or a complete replacement
of the existing elevator. It is worth noting that over 40 per cent of these elevators have
either crossed 20 years of age or are likely to reach the same in the near future. These
elevators will either have to be replaced or upgraded to present-day technology, as the
availability of trained hands to maintain such old elevators is becoming scarce.

Lift makers are now offering maintenance contracts with improved customer service.
Most offer tiered service levels ranging from fully comprehensive to a basic periodic oil
and grease service with breakdown call-back service. However, user expectations of
quicker response to breakdowns and emergency situations are yet to be met and the
industry needs to work further towards meeting these. (Construction Update, 2010)

1.5.5 THE INNOVATION

Side by side is a continual process of R&D that is making elevators smarter than ever
before. As a result of the rapid growth of micro-electronics and computer technology,
microprocessors have made inroads into elevator control systems too. In 1979, Otis
unveiled the first high-speed elevator control system using a microprocessor to control
every aspect of elevator operations followed by a sophisticated control system for
© Indira Gandhi National Open University, New Delhi Page 22
gearless elevators in 1990. (Earlier control systems were relay logic-based, which
evolved into solid state control.) This innovation was the ultimate in passenger
communications, with electroluminescent display screens in the car and hall that provide
a complete computer graphics capability including cable TV news, sports and movie
channels.
The demand for better-looking elevators and escalators has been welcomed by the
industry as an opportunity to do things the state-of-the-art way. And thus we see glass
walled elevator cars (bubble lifts) allowing passengers a bird's eye view of the city or a
building's atrium; double-deck elevator systems that improve on service and save space;
sky lobbies that can incorporate restaurants, cafeterias and other small shops; freight
elevators for moving heavy materials; residential elevators; and specialized elevators for
specific applications. Not surprisingly, the owners of new buildings are showing a
preference for more sophisticated and higher technology products and lift systems such as
intelligent or smart lifts. The newer entrants in the market are targeting this premium
segment.
The need for creating excitement and moving more people faster and more efficiently has
resulted in newer forms of dispatching, like destination dispatch control where the user
enters the floor he wishes to go to onto a keypad near the elevator bank and the system
designates the elevator into which he should enter. The elevator doors close and it travels
to the desired floor - there, the doors open and the passenger exits. This minimizes both
waiting time and round-trip time for users, allowing the elevator system to be more
energy-efficient and productive.
With plenty of development in semi-urban and rural areas too, the elevator industry is
confident about its growth prospects. As the value of land increases and the population
grows, demand for multi-storied buildings, and hence elevators in all shapes, sizes and
speeds, will go only one way - up! (Elevator World India Update, 2010)

COMPANY PROFILE
1.6 OTIS ELEVATORS INDIA LIMITED
1.6.1 COMPANY HISTORY (GENERAL)

In early 1953, Otis Elevator Co., New Jersey, U.S.A., the foreign collaborators, were
authorized by the Indian Government to undertake phased manufacture of lifts (elevators)
in India and, for that purpose, allowed to float a subsidiary company.
Otis Elevators India Limited was incorporated on 30th October, 1953 as a private limited
company. It was converted into a public limited company on 11th August, 1972.
The Company manufactures, installs, service repairs and maintains various types of
elevators and their components, escalators and travolators and high speed gearless
elevators operating at a speed of 700 ft. per minute.

© Indira Gandhi National Open University, New Delhi Page 23


In 1985 the Company received approval from Government to increase its licensed
capacity from 937 to 1,396 elevators per annum. Further application made to Government
enhanced the expansion of its licensed capacity to 2,800 elevators per annum.
The Company in 1987 proposed to introduce new generation of Otis products such as 11
VTR and 13 VTR geared machines, medium range door-operator systems, electronic
doorway obstruction detectors and automatic rescue device in the event of power failure
with the help of a simplified and compact microprocessor based operational control
system developed at the Company's in house R&D Centre.
In 1994 Four new state-of-the-art elevatoring system viz., Otis 2001 for medium size
residential apartments and other Hydraulic elevator for low rise building were introduced.
In 1997 a range of high-performance and aesthetically upgraded products with current
technology was developed and released to meet the augmenting market. Also, with a
view to increasing production capacity, the Company set up a State-of-the-art
manufacturing facility at Jigani industrial area near Bangalore with a capital outlay of Rs
18 crores with technical assistance from Otis Elevator Co. USA and Nippon Otis, Japan.
Further in the same year Otis Elevator Company (India) was awarded the prestigious ISO
9002 certification for applying a quality assurance system in marketing, installing,
modernizing and servicing of elevators and escalators.
Soon there after, the company announced the launch of a revolutionary safety device to
counter power failures and technical snags that bring moving lifts to a halt. Infact, Otis
was the first company to introduce the new device in India.
Otis Elevator (India) is one of the oldest joint ventures between an Indian and an
American promoter, established some 45 years ago. With an installed base of 24,000
elevators which amounts to over 65% of the total elevator business, it is the market leader
in the domestic elevator industry and has a technical-cum-financial collaboration with
Otis Elevator Co. New Jersey, numero uno in the global arena and is a vital subsidiary of
the multi billion dollars United Technologies Group. (Otis Fact Sheet, 2010)

1.7 COMPANY VISION


“We intend to be the recognized leader in service excellence among all companies—
not just elevator companies—worldwide. We will inspire our customers’ total
confidence through exceptional service that earns us 100 percent of their business, 100
percent of the time.”

1.8 VALUES THAT GUIDE THE WORK BEHAVIOUR


By embodying these values and doing many small things right every day, Otis
deliver for its customers

• People: It believes the most important assets of the Otis Elevator Company is to
go home at the end of every workday.
• Safety: Millions of people around the world use Otis elevators and escalators
every day without giving safety a second thought. For us, that’s success. We
understand that the safe way is the only way.
• Quality: For more than 150 years, quality has made Otis the most trusted name in
the industry.
• Integrity: We must do the right thing every time, and run our business to the letter
and spirit of the law. By acting ethically and honorably, we win the loyalty of our
customers. (Otis Fact Sheet, 2010)

© Indira Gandhi National Open University, New Delhi Page 24


1.9 SERVICE EXCELLENCE
Service Excellence is more than what Otis provide, it’s how the company think and
act. It’s not just “fixing a problem” or performing routine maintenance, it’s the “smile” in
the voice on the phone, the prompt response to a request and the drive to always improve.
It’s how Otis actually work with one another and how it work with its customers and the
riding public.
Every Otis employee is expected to practice Service Excellence every day,
following this 12-point roadmap.
The vision of making Otis the leader in service excellence envisioned to be
evident in the actions of every Otis professional worldwide. Likewise, every
employee is an ambassador of Otis who must help us achieve our mission of
being first in service, first in products and first in performance. The employees are the
Otis brand—the embodiment of the values Otis share.

1. Think safety first. Each employee is responsible for their own safety, the safety of
other workers, and the safety of the riding public. Every employee is empowered
to take any action necessary to eliminate the potential for an accident. At the
beginning of each work session, scan the area for hazards or risk of accident. At
the end of each work session, make sure the job site or workspace is clean, tidy
and safe.
2. Respond to customer requests promptly. Answer telephone calls in a standard way
and before the third ring: "Otis Elevator Company. (Your name.) How may I help
you?" Reply to every customer phone call or e-mail on the same day (leaving a
message or e-mail if the customer is unavailable).
3. Visit your customer every time you are in their building. Convey a sense of
urgency in your work and keep your customer fully updated on your progress.
When possible, check in and check out with them daily, giving a brief overview
of the work you have completed. Remember to ask if there is anything else you
can do for them and, above all, to thank them for their business. If the customer is
not there, leave a card with a note.
4. Deliver what you promise—promptly and unequivocally. By the same token, do
not promise something you know Otis cannot deliver. If circumstances arise that
prevent you from keeping a promise, call the customer immediately.
5. When a customer complains, remain calm. Listen, empathize and respond with a
can-do attitude. Take ownership of the complaint and work to resolve it promptly.
Remember that every complaint contains an opportunity to exceed the customer’s
expectations and transform a negative experience into a positive one.
6. Be prepared when going into a customer meeting. Conclude each meeting with a
summary of action items. Remember: If a customer asks you for something, you
own that request. Keep track of open action items until the request is fulfilled—
and the customer is fully delighted.
7. Think of yourself as an extension of the customer’s staff in every building you
work in. Be your customer’s eyes and ears. Where appropriate, offer suggestions
that will help make them more successful.

© Indira Gandhi National Open University, New Delhi Page 25


8. Remember that you are always on view. Adopt a pleasant and constructive
attitude. A smile goes a long way toward maintaining a positive image. Take
pride in your appearance. Take pride in your work. Take pride in your company.
9. Ask yourself: “What does the customer want?” Then work to exceed those
expectations. Follow up on every job. Never assume that any problem has been
fixed.
10. We are responsible for our own learning and self-development. By expanding our
knowledge and skills, we enhance our ability to help both Otis and our customers.
11. Be uncompromising on work quality. Never pass along errors. Apply ACE tools
to identify the root cause of a problem, then work to eliminate it.
12. At Otis, we succeed or fail as a team. It’s up to you to create a work environment
where the needs of customers are met promptly by leveraging Otis’ global
network of knowledge and experience. (Otis Fact Sheet, 2010)

OBJECTIVE
The industrial relations in an organization lie in the employer-employee relationships.
The research is undertaken with the objective to evaluate the relationship between
workers and management, to analyze this relationship, to find out the areas where an
issue arises & how to maintain a good relationship between them.

© Indira Gandhi National Open University, New Delhi Page 26


1.10 PRIMARY OBJECTIVE –
The primary objective of the research is to find ways to reintegrate operational staff and
development of employee synergy” on the basis of analysis of available history of
industrial relations in OTIS- Delhi.

1.11 SECONDARY OBJECTIVE-


The secondary objectives are
1) A case based analysis of union history of Otis Delhi
2) Study to suggest ways to further improve the management and union relations in light
of the best practices prevalent in the industry.

1.12 TERTIARY OBJECTIVE-

The tertiary objectives can be summarized in different points as follows:

1. To investigate the structure and main features of industrial relations in Otis.

2. 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.

3. 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.

4. To raise productivity to a higher level in an era of full employment by


lessening the tendency to high turnover and frequency absenteeism.

5. 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.

6. 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.

7. Vesting of a proprietary interest of the workers in the company in which they


are employed.

AREAS COVERED
In this project the covered areas are:-

1. Main aspects of Industrial relations

© Indira Gandhi National Open University, New Delhi Page 27


2. Industrial disputes and its causes

3. Communication between workers and management

4. Relations between workers and management.

5. Workers participation in management

6. Union in the organization.

7. Intra-relationship between unionized and non-unionized workers

SCOPE OF THE STUDY


The scope of the study is extended to the assessment of relations between the
workers and management in Otis. The study helps in resolving the unnecessary
issues raised by the workers which reduce the production efficiency generally by
© Indira Gandhi National Open University, New Delhi Page 28
slowing down the production. It will also help to find out the area where the
management can make new policies and implement those policies to improve the
relations between workers and management. This project is mainly for fair
practicing of management and workers with each other in the company. This is
specifically for the company and can not be generalized because of customized
details. This report will help in Administration, including overall organization,
supervision and co-ordination of industrial relations policies and programmes. Employee
counseling on all types of personnel problems-educational, vocational, health or behavior
problems can also be benefited from this report.

Due to lack of sufficient knowledge, I had to make a number of assumptions for


the sake of a useful and reasonably accurate project in the field of overall
relations between workers and management. While I believe that all such
assumption were justice and have put in all techniques from wherever they were
available some assumptions and limitations remain to keep every thing honest. I
would like to list them here:

ASSUMPTIONS:

© Indira Gandhi National Open University, New Delhi Page 29


1. The data collected is 100% correct as no personal prejudices are assumed to be
involved relating to the personal interviews and discussions.

2. The provided data by company is authentic and completely reliable.

3. Observations and Interviews were taken to crosscheck the authenticity of the


secondary data.

RESEARCH METHODOLOGY
© Indira Gandhi National Open University, New Delhi Page 30
The format of the research is majorly based on secondary data analysis of the similar
problems existent in the elevator industry based on exploratory structure only. An
unstructured interview of Managers and company lawyers was also undertaken as a part
of primary research analysis. Since highly sensitive negotiations for the tri-yearly Union-
Management settlement was underway during the period of internship, we were not privy
to any union leader as it would have had an adverse effect on the ongoing dialog

A research design is the framework of plan for a study which is used as a guide in
collecting and analyzing the data collected. It is the blue print that is followed in
completing the study. The basic objective of research cannot be attained without a proper
research design. It specifies the methods and procedures of acquiring the information
needed to conduct the research effectively. It is the overall operational pattern of the
project that stipulates what information needs to be collected, from which sources and by
what methods.

1.13 DURATION OF THE PROJECT

The research is undertaken with the objective to evaluate the industrial relations
& disputes between workers and management in Otis. Also to find out the main
aspects of existing relations between workers and management and how to
improve them. The research is for workers and management and to analyses their
relations with each other in all respect.

During the research period i had to report at 9 am and leave at 5:30 pm. This is
the general shift in which managers, executives, and officers of different
department’s works in the plant. During this period we also completed a project
i.e. of “REDUCING LITIGATIONS” which is a detailed study in minimizing
litigations of Otis.

© Indira Gandhi National Open University, New Delhi Page 31


LITERATURE REVIEW
1.14 INTRODUCTION
The growth of mediation over the last 20 years has promulgated quantities of literature
both pragmatic and theoretical as practitioners and academics have grappled with the
critical issues facing the development of mediation practice and alternative dispute
resolution (ADR).
The briefing required that this literature review be focused on current national and
international trends in mediation and dispute resolution and comment on any processes
and practices that support professionals in the delivery of quality dispute resolution
services, particularly those within a statutory context.
The purpose of this literature review is to attempt to capture “the state of the art” as
academics and practitioners currently regard it and have focused on material produced
between 2000 and 2009. The review has been written with a practical application in mind
and is designed to set the context for discussion.
Although this review attempts to address the works of seminal thinkers, time constraints
and limited access to information mean that some works will not have been included. In a
review of the book “Managing Workplace Conflict: Alternative Dispute Resolution in
Australia” by Van Gramberg, Tillett (Gramberg, 2006) points out that given the
importance of employment for most people and the number of disputes that arise, he is
surprised at how little attention seems to have been paid to the resolution of workplace
disputes in the literature of Alternative Dispute Resolution (ADR) in Australia and this
would seem to apply to New Zealand as well.
What became apparent in the process of the review was the need to identify themes to
help refine the material. With this in mind two themes were selected; the first relates to
an explanation of the models and styles of mediation that are currently being promoted in
the literature in an endeavor to capture some of the current thinking around the practice
of mediation and ADR. The second theme relates more specifically to global trends and
reflective thinking about the future emerging in the field of mediation and dispute
resolution practice. (Mahin.Stephen., May 2002)

1.15 MODELS OF MEDIATION


The first step in examining national and international mediation and ADR trends is to
examine the current thinking around mediation models Boulle (1998) distinguishes
between four models of mediation, the settlement, facilitative, therapeutic and evaluative
and makes the point that mediators in practice might demonstrate use of two or more
models. (Wertheim, E.,Love.A.,Peck.C. & Littlefied.L., 2006)
Briefly summarized, the main objective of settlement mediation is to encourage
incremental bargaining towards a central point between the two parties’ positions, the
mediator works to bring the parties off their positions to a compromise. In the facilitative
model mediators are encouraged to focus primarily on helping the parties identify and
express their interests and needs, assuming that this will bring to the surface common
ground and highlight areas for trade-offs and compromise.

Evaluative mediators try to provide disputants with a realistic assessment of their


negotiating positions according to legal rights and entitlements and within the anticipated
range of court outcomes, a style that is common where parties are in conflict over a single
issue - often money. Finally the therapeutic model, which has a focus on dealing with the

© Indira Gandhi National Open University, New Delhi Page 32


underlying causes of the problem with a view to improving future relationships between
the parties.

Facilitative mediation (sometimes known as problem-solving mediation) is widely


practiced amongst the mediation community. (Lusturum, 2001). Its primary focus is on
the problem itself and mediators encourage parties to explore data and experiences
related to the problem. The approach is pragmatic, focuses on underlying interests and
needs and is well expressed in the influential work by Moore (1996). Critics of this
approach argue that when mediators practicing the model probe for issues underlying the
conflict, they focus on information that relates to the problem itself rather than exploring
broader issues relating to the parties’ identities and relationships. (USACE)

In the prominent work by Bush and Folger (1994) on Transformative Mediation the
authors contrast their perspective on the practice of mediation with the more traditional
problem-solving approach and explore the transformative potential of mediation.
According to Bush and Folger the goal of problem-solving mediation is generating a
mutually acceptable settlement of the immediate dispute. They see problem solving
mediators as often highly directive in their attempts to reach this goal - they control not
only the process, but also the substance of the discussion, focusing on areas of consensus
and "resolvable" issues, while avoiding areas of disagreement where consensus is less
likely. According to them although all decisions are, in theory, left in the hands of the
disputants, problem-solving mediators often play a large role in crafting settlement terms
and obtaining the parties' agreement.

The transformative approach to mediation does not seek resolution of the immediate
problem, but rather, seeks the empowerment and mutual recognition of the parties
involved. Empowerment, according to Bush and Folger, means enabling the parties to
define their own issues and to seek solutions on their own. Recognition means enabling
the parties to see and understand the other person's point of view – to understand how
they define the problem and why they seek the solution that they do. Often,
empowerment and recognition pave the way for a mutually-agreeable settlement, but that
is only a secondary effect. The primary goal of transformative mediation is to foster the
parties' empowerment and recognition, thereby enabling them to approach their current
problem, as well as later problems, with a stronger, yet more open view. This approach,
according to Bush and Folger, avoids the problem of mediator directiveness which so
often occurs in problem-solving mediation, putting responsibility for all outcomes
squarely on the disputants.

The narrative approach to managing and mediating conflicts was offered by Winslade
and Monk (2000). This approach attempted to re-examine traditional approaches to
conflict mediation by examining the stories (or discourses) we tell about our conflicts.
The authors introduced theory that challenges assumptions that our interests are “natural”
and argue that what people want does not stem from internal desires or interests. Instead
people construct conflict from narrative descriptions of events and the stories we tell
about these events condition our interests, both socially and culturally. Within the
mediation framework a safe place is set up for disputants to tell their personal stories
about the conflict and their relationship to it. (Travis, 2007)

© Indira Gandhi National Open University, New Delhi Page 33


The mediator then works to break down the conflict into its component parts and stories,
and works to uncover the assumptions that each party brings to the conflict. Once the
biases and assumptions about a conflict are uncovered, alternative approaches are
considered and new stories about the conflict are created the aim being to move
disputants from seemingly intractable conflict situations to new stories based on
understanding, respect and collaboration.

There has been significant international debate since the publication of “The Promise of
Mediation” (Bush and Folger 1994) and “Narrative Mediation” (Winslade and Monk
2000).These models have been positioned as alternatives to the interest-based approach
that has dominated mediation practice especially in business and legal matters. Many
mediators continue to identify with a particular model in their practice; others have found
that their styles are an amalgam of various models. At Carleton University in Ottawa,
Canada, Insight mediation is the model that is taught and practiced- it draws on the work
of Canadian philosopher Bernard Lonergan and his theory of insight. According to Picard
and Melchin (2007) mediators who practice this type of mediation look for direct insights
(moments of clarity, the “Ah ha!”) and inverse insights (those new insights that a
mediator achieves by displaying curiosity and by challenging assumptions and
expectations) into what the conflict means to each party by discovering what each party
cares about and how that threatens the other party.

The Transformative and Narrative models maintain that probing for information about
the problem keeps parties locked into a conflict and to achieve resolution a shift must be
made away from the problem. In contrast, Picard and Melchin found when they looked at
their own mediation practice they could, by focusing on the problem and by exploring the
parties’ concerns about the conflict, breakthrough to a deeper understanding of the
relational issues of the problem. (Picard.J., June,2005).Using highly developed
questioning and listening skills the mediator works to foster communication among the
disputants to explore the full dimensions of the conflict. Insight mediators work under the
assumption that conflicts are maintained by feelings of threat and the Insight mediator
works to help parties examine and understand their underlying values and threats, both
real and perceived. In comparison to the Transformative model, which the authors
maintain focuses on the interactions between the parties (looking for opportunities to
foster empowerment and recognition), and the Narrative model where the mediator works
to co-construct a new non-conflict story (and spends little time probing the “problem”
story), the Insight model takes parties through an in-depth exploration of the presenting
problem rather than around it.

Whilst the Insight model does share some similarities with the problem-solving model,
the difference between the Insight model and the Interest-based “problem solving” model
is, according to Picard and Melchin, that the Insight model is relationship-centered rather
than problem-centered and assumes that parties must not only explore the problem, but
move through and beyond it to understand “the deeper cares, concerns, values, interests
and feelings that underlie the problem”. In their view this model is well suited to conflicts
where there is an ongoing relationship and, because of the newness of the model, they
invite researchers and practitioners to evaluate its usefulness in a variety of contexts.
Another perspective is offered by Danesh and Danesh (2002) who use the consultative
intervention model to offer a critique of institutionalized mediation. (Danesh.H.B., 2002).
The three defining features of this model are that it is pro-active, unity-centered and

© Indira Gandhi National Open University, New Delhi Page 34


educative; features which they argue are missing from the predominant mediation
models. A pro-active effect offers three possibilities, firstly a disputant could leave a
conflict resolution process with a better understanding of how to deal with the
psychological and physical toll that conflict can have on individuals and their
relationships. Secondly, disputants can learn how to better manage future conflicts
without resorting to external intervention. Thirdly, disputants may learn how to approach
future conflict in a way that lessens the appearance of conflict in the first place. Tied into
this is the premise that our approach to conflict , the intensity of it and the way we pursue
conflict resolution, is tied into our worldview – proactive conflict resolution requires
making participants aware of the connection between their worldview, the conflict they
are in and their approach to the resolution of that conflict. According to Danesh and
Danesh conventional mediation is not designed to engage at the level of worldview.

Engagement in a consultative intervention model gives disputants the opportunity to learn


about themselves and others, and how conflicts emerge, (a worldview self education as
they are encouraged to become aware of and reflect upon their own worldview),
education as “challenge and transparency” meaning that the process itself educates
disputants by challenging them to evaluate themselves, and their alternatives. (Ghosh.S.,
2007).According to the authors it is important that this process be transparent so
disputants recognize the worldview underlying their approach to conflict. Encouraging
disputants to consider how they can build a degree of trust and unity between themselves
as a group rather than focusing on themselves as individuals, may result in conscious
reflection and facilitate a more harmonious, meaningful process as disputants reflect upon
the nature of conflict and their own behavior in trying to settle the matter at hand. The
authors contrast this with the interest-based approach (Moore 1996) where the job of the
mediator is to help individuals to avoid “the particular idiosyncratic problems that are
pushing the parties toward impasse” and focus them instead on an institutionalized model
that aims at resolving the specific differences between them (Moore, 1996: 76). Finally,
the authors consider that in combining these components, the consultative conflict
resolution model should “invite participants to consciously reflect on the range of
predominant worldviews and the relationship of those worldviews to approaches to
resolving conflict”. The current challenge according to the authors is to recognize a
condition of unity as the broader purpose of conflict resolution.
In a new article by Kressel (2007) the Strategic style of mediation is approached in which
the mediator attempts to attend to the underlying dysfunction that is fuelling the conflict.
The author maintains that although this style is illustrated in divorce mediation, there is
little documented research or discussion about it. (Kressel.J., 2007).The author cites a
number of writings that, in his view reveal little evidence of mediators who believe it is
important to search for and address underlying causes of conflict and in fact most of the
empirical studies focus on a “professional bent” to encourage discussions around interests
rather than positions or a non-directive facilitator who aims to improve communications
and understanding, regardless of agreement making.
The characteristics of the Strategic style are summarized as having a focus on latent
causes, having a highly active mediator who is clearly the leader of the problem solving
process rather than a non-directive facilitator and a circumscribed, pragmatic focus.
Mediators surface problems that are immediately relevant to solving a practical problem
in an efficient manner. The author considers that the strategic style is a result of
mediators’ training in disciplines with well-developed traditions of latent cause thinking,
repeated experiences involving disputing parties with ongoing relationships and

© Indira Gandhi National Open University, New Delhi Page 35


organizational contexts that support reflection about latent causes – such training is not
typical of lawyers, labour mediators and the community mediators who govern the world
of ADR. Finally, the author raises a number of empirical questions: “How common is the
strategic style? In settings for which the strategic style as well as other styles are
appropriate, how flexible are mediators in moving between styles, either from case to
case or within a given dispute, as the parties’ motivation and circumstances alter? In
settings for which the strategic style as well as other styles are appropriate, in what ways
is the strategic style more effective or less so?”

Some recent literature from the USA and the creation of the Harvard Negotiation Insight
Initiative led by Erica Ariel Fox has seen a progressive move towards managing conflict
at a deeper level and encouraging mediators to explore the “spiritual” side of mediation.
Cloke (2002) offers another vision of mediation practice and conflict resolution.
(Cloke.Ferdinand., 2002).The work aims to examine the essence of the process rather
than the procedure and sets out to challenge mediators to question their own assumptions
about how conflict should be handled and notes that mediation is about "respect, honest
and empathetic communication, trusting collaborative relationships, responsibility,
forgiveness and closure." (Cloke: 119). Every conflict and every resolution, says Cloke,
"has a spiritual dimension and energy... Boldness, spirited issues in mediation, it is
necessary to become aware of and cultivate spiritual experience within ourselves, which
means pursuing mediation as a spiritual task." (Cloke: 125).
In the more complex “The Crossroads of Conflict” (2006,) Cloke encourages mediators
and parties in conflict to improve their dispute resolution skills by travelling “the path of
transformation and transcendence of wisdom, spirit and heart” (p1). Cloke does not
address litigated disputes and so the direction that is set out in the book would be more
difficult when disputes have reached court or with people who do not have an ongoing
relationship.
And so within the modern mediation movement there is a variety of models being
practiced and researched. Paleker (2003) remarks that a lack of clear process definition
leads to disparate practices and Alexander (2003) goes on to comment that whilst
disparate practices reflect mediation diversity, they also pose a real problem for quality
control and mediation promotion amongst consumers. (Palekar, 2003).

1.16 GLOBAL TRENDS IN MEDIATION


Mediation growth and application is very much influenced by the context in which it
takes place. Alexander (2002) points out that mediation and ADR has grown rapidly in
many common law jurisdictions such as USA, Australia, Canada and England and less
quickly in civil law jurisdictions such as Germany, Austria, Denmark, Belgium, Germany
Switzerland and Yugoslavia with the exception of the Netherlands and South Africa.
ADR plays a unique role in South Africa due to the fall of the apartheid system and the
ensuing human rights and discrimination issues. Alexander suggests that despite the
differences in developmental stages, universal themes exist around such issues as the
debate on standards for mediation practice and accreditation; how to determine the
suitability of a dispute for mediation; flexibility v regulation; how to mobilize mediation
practice in the shadow of the court. In regards to process, the debate continues about the
practice of mediation versus the theory of process – this being more obvious in the court-
related mediation where lawyers or judges play a role. Another key issue is whether the
policy aims of mediation such as improving access to justice, reducing court waiting lists
and increasing consumer satisfaction with the legal system have been and can be met.
(Alexander.N.V., 2002-2003)
© Indira Gandhi National Open University, New Delhi Page 36
At the practice end of the spectrum, she observes that mediators, regardless of
accreditation training, tend to mediate in a way that reflects their previous training
whether as lawyers, engineers, social workers, psychologists or academics. The debate
continues as to whether lawyers, or those with a socio and psychology background, make
better mediators. Although the design of best-practice formula for mediation models and
systems cannot be significantly dependent on the nature of the legal system in which it
operates, Alexander points out that there is a risk in merely reproducing policy and
making international comparisons without asking which success stories will or will not
translate.
Further reading of Global Trends in Mediation 2nd Ed (2006) as a resource may be
warranted as this book, although not available at the time of this review provides;
coverage of both common law and civil law jurisdictions; attention to the diversity of
legal cultures and systems on four continents; an analysis of mediation models, standards,
laws and practices; a wider spectrum of mediation laws and approaches worldwide than
is traditional in comparative studies. Contributions are from senior dispute resolution
academics or practitioners.

1.17 EMPLOYMENT DISPUTE RESOLUTION (EDR): THE CASE


FOR MEDIATION
The USA has a different context for employment disputes from that of New Zealand
given the presence of statutory employment dispute resolution processes in this country.
Transformative mediation gained wide recognition in the USA when the U.S. Postal
Service (USPS) embraced it in 1996 after a pilot in 1994. According to Bingham (2004)
in her comprehensive review survey of the research on employment dispute resolution
conducted in recent years, EDR in the USA is affected by its setting in the private, non-
profit or public sectors. In the public sector mediation predominates and Bingham
provides a raft of survey data to indicate that mediation is being experimented with in
personnel and employment disputes. In the article she maintains that dispute system
design determines many aspects of an EDR program and focuses on in-house system
design for employment conflict.
According to Bingham there is little systematic employment research comparing the
impact of different models of mediation on participant and organizational outcomes.
The USPS mediation program REDRESS has however generated comprehensive data.
REDRESS which stands for (Resolve, Employment, Dispute, Reach Equitable,
Solutions, Swiftly) is the US Postal Service's alternative dispute resolution mediation
program with around 1500 neutral mediators offered on roster. REDRESS mediation is a
voluntary alternative dispute resolution program offered to employees nationwide as part
of the Postal Service’s Equal Employment Opportunity (EEO) complaint process. The
REDRESS mediation program is generally offered to employees at the EEO informal
counseling stage. REDRESS is also at times offered at the formal complaint stage. Data
collected from 180,000 exit surveys provides evidence of consistently high participant
satisfaction with the program. (Loft.Donald.A.)
Bingham’s article also considers the case for arbitration, the timing of the intervention
and the nature, training, qualifications or demographics of the neutrals.
She concludes by suggesting that the growing body of research indicates a case has been
made for mediation as compared to arbitration in the field of employment disputes.
According to Lipsky and Avgar (2004) the growth of ADR in employment relations over
the last 25 years has been called a “quiet revolution”. They maintain that the next
generation of researchers must examine the societal implications of ADR and ask the
question “Has the transformation of employment dispute resolution in the United States
© Indira Gandhi National Open University, New Delhi Page 37
strengthened or weakened employee rights and our system of social justice”? This
question might also be asked in the New Zealand context.
In Ontario, Canada, mandatory mediation is required in all case-managed actions in the
Regional Municipality of Ottawa-Carleton. Brown (2002) comments that Ontario’s
experience with mandatory mediation is new. However, she makes the point that the
statutory framework in Ontario strongly suggests that facilitative rather than evaluative
mediation (an approach that she maintains promotes positioning and polarization) is the
approach to be applied in the court-connected mediation process. Her article quotes
research completed by Dr Julie MacFarlane “Culture Change? A Tale of Two Cities and
Mandatory Court-Connected Mediation” and indicates that some of the legal fraternity
would like to re-shape the mediation process to offer the process of evaluation.
(McFarlene.J., 2001).She submits that whilst for some, an evaluative model of mediation
would suit their needs; it is better clearly labeled as an alternative process (suggesting
“neutral evaluation” rather than ‘evaluative mediation’) that is separate and distinct from
mediation. Evaluation should be recognized as a completely different activity that
requires different mental processes, techniques and skills. By clearly distinguishing the
process, a consumer would have clarity about what to expect from the dispute resolution
process. With time she suggests it will become apparent whether certain classes of cases
are better suited to one particular style of mediation.

1.18 FUTURE FOCUS


1.18.1 CONCLUSIONS

The available literature points to a future where practitioners and academics are
beginning to understand the need to consolidate and to work collaboratively on
progressing the practice and theory of mediation and ADR, to unify sectored interests and
to ensure that the diversity of society is represented amongst practitioners.
Some of the literature has pointed to the debate about the need for ongoing and
enforceable codes of practice and the NADRAC Report on standards and accreditation
for mediators and those in the ADR industry is closer to home than much of the literature
which emanates from the United States. The message seems to be, regardless of the
context in which the ADR professional practices and regardless of the preferred model of
mediation there is a sense that mediation and ADR needs to look underneath the conflict
and to move into a realm that explores conflict at a deeper level for disputants. The
challenge as Mayer (2004) points out – is that the field of conflict resolution needs to
broaden its role definition and become conflict engagers.

© Indira Gandhi National Open University, New Delhi Page 38


DATA ANALYSIS
1.19 HISTORICAL OVERVEIW (FILE DOCUMENT DELHI
UNION)
The history under consideration is from early 2005.The file starts with a new Zonal
Human Resource Manager being appointed.
The North Zone (NR) of Otis Elevators India Ltd is the biggest in geographical area and
in terms of number of divisions. A critical division in a predominantly urban belt it was
considered to be a vital Division in terms of productivity of sales and service personnel
and in terms of new business. But the Division was ‘well known’ for various other
reasons. There was a strong and militant trade union who had a strong hold over the staff,
and who regularly threatened the management and tried to enforce their will on the
Management. Service personnel were mostly well equipped for their task but had become
nonchalant under the influence of a strong trade union. There were inter-group rivalries in
many cases between the workers and promoted executives from worker ranks affecting
the customer service area. The situation was considered to be very serious and the 2002-
2003 batch of workers promoted to executives were considered pariah by the workers in
general and union in particular.

© Indira Gandhi National Open University, New Delhi Page 39


At this outset, we came to know that the new HR Manager (HRM) was very ‘friendly’
with the trade union functionaries of all denominations, always doing his best, even out
of the way, to keep them in good humour.
The NR management especially the HRM was quite active at this point and they had
agreed to look into the Union raised issues till date and had promised to solve all genuine
problems within their jurisdiction expeditiously.
In October 2006 new hazard training was being implemented in all branches of the Zone.
But the trade union would not allow its implementation as they stated that it was a
inadequate effort with faulty methodologies. Several rounds of discussion took place to
make the union leaders see reason and not to stand on petty ego problems when larger
organizational interest was at stake. But it was not fruitful.
At this stage the management decided that softer options would not work and they had to
enforce implementation. Accordingly, the new training and hazard tests were
implemented without the ‘consent’ of the trade union. The union felt challenged and
declared ‘non-cooperation’ against Management. Hazard Tests arranged was boycotted
by majority of the staff despite giving prior notice, under instruction from the Union.
Memos were issued individually to all the staff who boycotted the test for disobedience
and dereliction of duty. Union started propaganda against the management.
The Union got another issue when a workman, MS was handed over to the police on
charges of theft during a service call due to failure of production of proper company
authorization. Though the company bailed out the workmen through prudent legal
diligence the Union took it as an opportunity to start an intensive agitation against the so
called deficiencies in the attendance system and started an en-masse gathering at the
corporate office causing unnecessary ruckus. Further, the requisite attendance in form of
the Time Tickets was not being deposited by the workers due to instigations from the
Union.
The paper implies that at this point, the management had decided to make best use of the
opportunity to show the union their proper place.
Consequentially, Memo was issued to the President of the Union for instigating unlawful
activities against the management proposing disciplinary action. Meanwhile their
members who where issued memos became extremely restive as it was their first
experience in their career life and pressurized the leaders to solve the issue. Further, in a
brilliant reconciliatory mode in times of high tension, an ad-hoc payment in lieu of
salaries for the month of December was released as non submission of TT had delayed
salary payment that month. This coupled with the release of company sponsored
motorcycles during the period of high drama, increased the goodwill of HRM and
expressed the good intent of the company per se among the general workers immensely.
Sensing the workers changing mood, the Union went aggressive and boycotted the
December, 2006-January, 2007 salaries on the grounds that payment was deducted on
basis of no work done during period of agitation. They pressurized the workers to close
down their salary accounts and demanded salary payments henceforth only in cash.
The management in a tactical move though refused to acknowledge the blatant illegal
actions of the union but still on purely humanitarian basis, posted the salary cheques to
each individual workmen. Rejected thrice under pressure by the workmen, the cheques
© Indira Gandhi National Open University, New Delhi Page 40
were slowly but surely changing the belligerent mood of the union members. Due to a
number of factors including domestic compulsions, salaries were needed badly and as a
result, the workers pressurized the leaders to reach a compromise at the earliest.
Under the intense pressure of the members of the Union, its General Secretary, JSS
contacted the HRM repeatedly seeking early solution.
They were assured that the issue would be settled at the appropriate time. Union was at
its wits end and sought appointment with HRM.
At this point, the Area Managers were advised to keep a close watch on the activities and
create record against non performers. Slowly the impact of the agitation started whittling
down and open methods like dharna and demonstration was completely stopped.
In due course, the much awaited appointment with HRM was granted. At the appointed
time the Union President, General Secretary and a few other senior functionaries met the
HRM urged for reconciliation. SB agreed to their view that in the competitive external
scenario management and union had to work together for the organizational cause. The
request for withdrawal of the memos was turned down but it was agreed that no further
action would be taken if such instances were not repeated.
This incident was an eye-opener for other pressure groups. Soon after this the union was
further brought to their senses. The first move was to reduce their source of funds. While
the leaders were unhappy other workmen felt relieved.
A number of coordinated training programs in line to the managements long term goals
and objectives were also arranged.
Concurrently the Area Managers were fully empowered and full backing was assured for
their legitimate legally and morally sustainable action. Through various meetings inputs
were given to AMs to build their confidence. A semblance of peace having realized AMs
were told to concentrate on key result areas, especially new business.
The coup d'état for the Union was dealt by SB in November-December, 2007 when JSS,
the able and militant General Secretary of the Union was successfully convinced to join
Executive-8 ranks along with his top aides.
By October 2007 there was tangible difference in new business performance. Yet
achievement of target for the year was a difficult task as the required growth rate was
highest for the Division among all Divisions. External competition was catching up and
Company had decided to concentrate on premium new product lines. Performance of the
Division in New Product business was relatively poor since neither the field marketers
nor the Area Managers were competent to explain the nitty gritty of the ever-changing
products. The HRM and his team took up the challenge and through a series of training
classes and meetings a group of agents were trained to do this line of business.
Undaunted by challenges the matter at hand was taken very seriously. Through a series of
campaigns morale of all functionaries was boosted and a call was given to make the Zone
All India No. 1 in premium growth rate. Staff meetings were addressed by SB in all
branches during all branch visits. Organizational imperatives were explained and their co-
operation sought for making the Zone the high performing Zone. There was perceptible
enthusiasm all round and energies were channelised for productive purposes

© Indira Gandhi National Open University, New Delhi Page 41


When the financial year closed the Zone achieved splendid results as per the corporate
objective of the company.
One of the most remarkable achievement during the period was the realization among the
workers of the basic fact that the management is genuinely concerned with their well
being and hence the increasing irrelevance of the so called Union leaders as there
representatives. As a matter of fact, the union itself under the influence of HR’s efforts
transformed itself. From a militant, demanding tone, it now became a more reconciliatory
and mutually amenable forum for genuine workmen grievances.
The case of Otis-Northern Region is a classical refute to the age old concept prevalent in
the industry in general that malpractices have a long history and therefore should be
eliminated through slow process only. The premises that drastic action in one zone would
escalate into national problem and affect the performance of the company was also found
to be entirely frivolous.
The study amply demonstrates the affect a diligent Human Resource Team can have on
an organization. A militant union that was bent on challenging every decision of the
management was transformed to a willing cooperator of broader management objectives
through a number of brilliant tactical moves.
A model of industrial relations in modern post-politicized union times, the case of OTIS-
NR in general is at par with the industrial best practices of today and requires due
consideration and praise for its transformation of a worst possible situation to its
advantage. (OTIS UNION FILE DOC. NR, 2006-2010)

1.20 THE INDUSTRIAL RELATION TENSION GRAPH –


(Mehta.Madhavi., 31-28,July,2008)

FIG.1

© Indira Gandhi National Open University, New Delhi Page 42


FIG. 2

The graph is a product of full scale detailed analysis of OTIS-Delhi union file of North
Region which was provided to us, as well as B ON
the HOMIEfrom the “Minutes of the
inferences
meeting file” along with the first.The red line above represents the rise and fall in the
level of tension which existed between Management and union.The timeline which is
taken in the above study and which was provided SCAbyLEthe
1 mentioned file starts from
November,2006. The tension mentioned above is defined on a 5 point inferential scale
which has been purely defined on the secondary literature review available on Industrial
relations. The basis on which the scale is defined is purely inferential and laden with
researcher’s acumen to understand the historical context & background and as per the
information provided by the testimony of managers who faced these situations. The
whole scale is decreasing in intensity of tension from scale 5 to scale 1.The definition of
scale rating is as follows –

S.NO. .
(TABLE 0.0) SCALE DEFINITION RANGE
1 S5 AGITATION 5<S5<4 & S5=5
2 S4 STALEMATE 4<S4<3 & S4=4
3 S3 NEGOTIATION 3<S3<2 & S3=3
4 S2 DÉTENTE 2<S2<1 & S2=2
5 S1 BONHOMIE 1<S1<0 & S1=1 & 0

The level of tension have been defined on the following five point scale – DÉTENTE

© Indira Gandhi National Open University, New Delhi Page SCALE2


43
SCALE 5(AGITATION) – As defined by the online dictionary is a state of excitement,
disturbance, or worry or the act of attempting to stir up public opinion for or against
something or The act of agitating or the state of being agitated or Extreme emotional
disturbance; perturbation or the stirring up of public interest in a matter of controversy,
such as a political or social issue [1w].There were certain expression which were very
helpful in deducing this level of scale from the letters, memos and notices like “I am
aggrieved” or “I am shocked” ,i.e. an expression of extreme emotional disturbance is also
considered to be the part of tension scale.. Besides this if it is explicitly evident that an
actual situation of agitation was present we have given it a rating of scale 5.This
represents all forms of violent actions. In Indian context there are terms which describe
this state like “Ghairao” [NHRD MEET, 28-04-2010, PHDCCI, P DWARKANATH] in which a Manager is
surrounded by the workmen from union and is not allowed to move around too. This is a
pressure tactic used by the union to get their demands met. We have also divided the
agitation scale into 3 major parts in decreasing order of intensity. The three categories are
shown in Table 1.0 namely the Militant, Hostile & Assertive in decreasing order of
intensity of disturbance in relations of management and union. The militant is the
situation which is marked by violent strikes , Agitation and can reach upto the level of
actual manhandling and destruction of organizational property.

S.NO.(TABLE
1.0) SCALE DEFINITION RANGE
1 S5.a MILITANT 5< S5.a <4.6 & S5.a =5
2 S5.b HOSTILE 4.6< S5.b<4.3 & S5.b=4.6
3 S5.c ASSERTIVE 4.3< S5.c <4 & S5.c=4.3

SCALE 4 (STALEMATE OR DEADLOCK) – As defined by the online dictionary is


a deadlocked situation. To bring into a stalemate [From Middle English, from Anglo-
Norman estale (a fixed position) + -mate. Usage "`We can again resort to lobbying in
case we fail to avoid a stalemate,' Latief said." — Wiranto . Elected Chairman of Team
to Elect President, The Jakarta Post (Indonesia), Oct 28, 1997. This is the case when
either of the management or the union is not ready even to discuss an issue or they are
ready to discuss but not finding a common basis of talks. We have also divided the
stalemate scale into 3 major parts in decreasing order of intensity. The three categories
are namely -

S.NO. .
(TABLE
2.0) SCALE DEFINITION RANGE
1 S4.a FATIGUE 4<S4.a<3.6 & S4.a=4
2 S4.b STATUS QUO 3.6<S4.b<3.3 & S4.b=3.6
3 S4.c TRANSITION 3.3<S4.c<2 & S4.c=3.3

SCALE 3(NEGOTIATION) – As defined by the online dictionary is a discussion


intended to produce an agreement; "the buyout negotiation lasted several days"; "they
disagreed but kept an open dialogue"; "talks between Israelis and Palestinians" talks
, dialogue give-and-take, discussion, word - an exchange of views on some topic; "we
had a good discussion"; "we had a word or two about it" . We have also divided the
negotiation scale into 3 major parts in decreasing order of intensity. The three categories
are namely –
© Indira Gandhi National Open University, New Delhi Page 44
S.NO. .
(TABLE
3.0) SCALE DEFINITION RANGE
1 S5.1 PROPOSAL 5<S5<4 & S5=5
2 S5.2 CONSISTENCY 4<S4<3 & S4=4
3 S5.3 ACCEPTANCE 3<S3<2 & S3=3

SCALE 2 (DÉTENTE) - The easing of tensions or strained relations


Alleviation, Easement, Easing, Relief - the act of reducing something unpleasant (as pain
or annoyance); "he asked the nurse for relief from the constant pain". We have also
divided the detente scale into 3 major parts in decreasing order of intensity. The three
categories are namely

S.NO. .
(TABLE
4.0) SCALE DEFINITION RANGE
1 S5.1 RELIEF 5<S5<4 & S5=5
2 S5.2 ASSUAGE 4<S4<3 & S4=4
3 S5.3 CONVIVAL 3<S3<2 & S3=3

SCALE 1(BONHOMIE) – Affability, Cheerfulness, Congeniality, Conviviality,


Cordiality, Friendliness, Geniality, Good Cheer, Good Humour, Heartiness, Hospitality,
Warmth. We have also divided the bonhomie scale into 3 major parts in decreasing order
of intensity. The three categories are namely –

S.NO. .
(TABLE
5.0) SCALE DEFINITION RANGE
1 S5.1 AMICABLE 5<S5<4 & S5=5
2 S5.2 CORDIAL 4<S4<3 & S4=4
3 S5.3 QUID PRO QUO 3<S3<2 & S3=3

(Mehta.Madhavi., 31-28,July,2008)

1.21 PRIMARY DATA ANALYSIS

The data was collected through questionnaire and following is questionnaire analysis and
interpretation:

© Indira Gandhi National Open University, New Delhi Page 45


1.21.1 Q.1

How would you rate the relationship between employees and management in this
establishment? (Check only one)

FREQUENCY PERCENTAGE
1 Excellent/Outstanding 4 13.33%
2 Very Satisfactory 23 76.66%
3 Satisfactory 3 10.0%
4 Unsatisfactory No Response 0

ANALYSIS:
In the concern of relationship between employees and management in this establishment
13% of the workers said that relations are excellent, 77% of them said they are very
satisfactory. Only 10% are in favor of satisfactory relations. A good thing is that none of
them are in opinion that relations are unsatisfactory. This once again prove our assertion
that the company is witnessing a period of bonhomie.

1.21.2 Q.2

What factors were taken into account in making the above rating?
(Check as many as applicable)

FREQUENCY PERCENTAGE
1 Number of grievances 13 43.33%
2 Labor turnover No Response 0
3 Number of industrial dispute/strikes 11 36.66%
4 Open communication between workers and No Response 0
management
5 Grade of job done by worker No Response 0
6 Transparency of management 6 20%
7 Others, specify ____________ No Response 0

ANALYSIS:
In the concern of basis of the ratings of relationship between workers and management
the response is as follows:
Whereas 43% are in view that the basis is number of grievances is the basis of
relationship between them, 36% believe lack of visible influence forms satisfaction
levels. A good 20% thinks that transparency of management is the main factor of rating
the relationship between workers and management.

1.21.3 Q.3

© Indira Gandhi National Open University, New Delhi Page 46


Which, if any, of the following methods does management regularly does to
communicate to its employees?
(Check as many as applicable)

Number of persons, out of 30 samples


1 Regular meetings between senior managers 26
and employees
2 Task forces or working parties No Response
3 Regular meetings between employees and 30
supervisors or line mgmt
4 Daily “walk around” the workplace by senior 29
management officials
5 Formal joint consultative union meetings No Response
6 Quality department/productivity 18
improvement groups
7 Suggestions schemes for employees 27
8 Employee representatives sitting on board of No Response
directors meetings Regular social functions

ANALYSIS:
In the concern of communication level between workers and management, the response I
get is that 26 workers out of 30 samples accept that there are regular meetings between
senior managers and workers. All 30 workers accept that regular meetings between
workers and supervisors results in good communication level. Almost all workers are in
view that daily walk around of the workplace is an effective measure to improve the
communication level between them. Hence this shows that there is a good
communication level between workers and management.

1.21.4 Q.4

Does management consult with employee representatives or union officers on the


following:
(Encircle appropriate code (1-3) for each area of concern)

ALWAYS SOMETIMES NEVER


Staffing levels 1 (2) 3
Wage increases (1) 2 3
Occupational health (1) 2 3
& safety
Introduction of new (1) 2 3
technology
Dismissals & (1) 2 3
disciplinary action
Changes in work (1) 2 3
action
© Indira Gandhi National Open University, New Delhi Page 47
Major change in (1) 2 3
product/services

ANALYSIS:
From the above question it is pretty clear that management consults workers
representatives on almost all the issues at regular time period to make a best decision.

1.21.5 Q.5

Which of the following privileges are provided by management to union


officers/members?
(Check as many as applicable)

Number of person, out of 30 sample


1 Access to an office or meeting room 21
2 Access to secretarial assistance No Response
3 Access to essential facilities 29
4 Access to phone, fax or similar facilities 22
5 Use of bulletin boards 30
6 Time off from work for union No Response
business/activities
7 None of the above No Response

ANALYSIS:
In the concern of privileges that are provided by the management to union
officers/members, the response received is that the union officers /members cannot enter
or participate in the meeting without prior permission of desired officials. Union
members are not permitted a office or meeting room in the corporate Each and every
worker cannot use this facility without prior permission of the related officer or
executive. Workers are allowed to use phone facility but not the fax facility. Fax facility
is only being provided when it is very urgent and important work, if management thinks
so. There is a separate notice board for union members or the workers, on which latest
notices and information is pasted. This is done to keep the workers update and aware of
the management activities and policies.

1.21.6 Q.6

How often does the union discuss employee relation matters with management?

FREQUENCY PERCENTAGE
1 Once a week 2 6.66%
2 Once a month No Response 0

© Indira Gandhi National Open University, New Delhi Page 48


3 Once in 3 months 3 10.0%
4 Only when an issue arises 25 83.33%
5 Never No Response 0

ANALYSIS:

In the concern of how often does union discusses employee relation matters with
management, the response is that majority of workers i.e.83.33% is in view that they talk
only when an issue arises and only 10% is in view that they talk to management once in 3
months. When ask from management it was found that workers discuss only when an
issue arises. There is no provision of discussion once in three months or once in a week.

1.21.7 Q.7

What issues were frequently raised by the union with management?


(Check as many as applicable)

Number of workers out of


30 samples

1 Wage increase According to settlement


2 Payment of allowances According to settlement
3 Overtime (Hours/Pay) 29

4 Leave benefits Dispute settlement procedures 20


5 Working condition/environment 14
6 Hours of work No Response
7 Occupational safety and health measures No Response
8 Change in working time arrangements 23
9 Change in work practices 17
10 Management practices 21
11 Introduction of new technology 23
12 Participation in training programs No Response
13 Introduction of career paths of employees No Response
14 Change in dispute settling procedures No Response
15 Dismissal/disciplinary measures 13
16 Individual grievances

© Indira Gandhi National Open University, New Delhi Page 49


17 Others, specify
Revise study of incentive scheme 27
Canteen facility 22
Transportation facility 21

ANALYSIS:
In the concern of the issues that are frequently raised by the union the response from the
workers and the staff is very good. Wage increases and payment of allowances are most
common issues raised by the workers, but in Otis, the wages and allowances are paid
according to the settlement. Overtime, changes in working time arrangements leave
benefits dispute settlement procedures, Management practices, Revise study of incentive
scheme, Canteen facility, Transportation facility are also commonly raised issues by the
workers. These are most common because maximum workers most required benefits and
facilities for them. Besides these, working condition/environment, Change in work
practices, Introduction of new technology, Dismissal/disciplinary measures are the issues
which are raised by workers rarely.

PAYMENT OF WAGES:*

1. Workman is required to open a Savings Bank Account in the nearest branch of


specified bank(HDFC) or at any other place of posting from time to time and all
payments that are due to him including the statutory payments, namely,
Wages/Allowances, Bonus, etc. shall be deposited into his account. No payment
whatsoever will be made directly to him at the factory. In the case of all statutory
payments, he will be required to sign in the statutory register(s) maintained for the
purpose at the factory as advised to him by the management. For any administrative
reason, if the amounts that are due and payable to him is not deposited into his account,
he shall intimate the same to the Company within a week’s time to take immediate
necessary action in the matter.

2. Wages will be paid monthly within 7 days of the completion of the wage
period.

3. Where the services of a workman are terminated unless the wages are paid to him on
the day of his termination, he shall present him in the factory to receive his wages on the
usual pay day

1.21.8 Q.8

Which of the following were the subjects of negotiations?

Number of workers out of 30 sample


1 Wage increases 28
2 Payment of allowances 26

© Indira Gandhi National Open University, New Delhi Page 50


3 Overtime (Hours/Pay)* As per govt. rules
4 Leave benefits As per govt. rules
5 Working condition/environment 26
6 Hours of work No Response
7 Occupational health and safety measures No Response
8 Change in working time arrangements 19
9 Change in work practices 25
10 Management practices 37
11 Introduction of new technology 23
12 Workers education program and No Response
development
13 Dispute settlement procedures 24
14 Introduction of new career paths No Response
15 Regularization of casual/contractual No Response
employees
16 Dismissal/Disciplinary measures 26
17 Organizational structuring No Response
18 Others, specify___
Service vehicle 19
Attendance Register 22

1.21.9 Q.9

Please indicate the type of industrial action that occurred in this establishment?

Number of workers out of 30 samples


1 Strike No Response
2 Sympathetic strike No Response
3 Boycott No Response
4 Sit down strike No Response
5 Slowdown 30
6 Overtime ban 30

ANALYSIS:
In the concern of industrial actions that were occurred in this establishment, the response
is fantastic and a unexpected result is obtained that since 2004, there were no strikes, no
mass leave, etc. by the workers. But slowdown and overtime ban is a generally occurring
industrial action.

1.21.10 Q.10

© Indira Gandhi National Open University, New Delhi Page 51


During the industrial action, was there any effect on output or service of this
establishment?
YES **** NO

1.21.11 Q.11

If yes, what efforts were made to offset or recover these effects?


(Check as many as applicable)

Number of workers out of 30


samples
1 Redirect production or service to sister 21
company/subsidiary
2 Use of overtime 24
3 Temporary increase in staff 20
4 Use of management labor No Response
5 Use of contract services 20
6 Non-striking employees continue working No Response
7 Others, specify No Response

ANALYSIS:
In the concern of efforts made to recover these above effects, the response is as follows:
The company tends to outsourcing of the services to complete the service cycle
processes. The management occasionally increases the staff by using the housekeeping
and contract labor in production process. Till date there is not even a single non-striking
worker continued working, there is only slowdown of the production process.

1.21.12 Q.12

What method is used in fixing or revising wage and salaries of majority of the
employees? (Check only one)

Number of workers out of 30 sample


1 Collective Bargaining Agreement No Response
2 Individual Agreement between employer and No Response
employee
3 Employer’s decision No Response
4 Agreement between employer and union As per settlement with union
5 Wage restructuring due to minimum wage No Response
issuances of Regional Tripartite
6 Others, specify No Response
© Indira Gandhi National Open University, New Delhi Page 52
1.21.13 Q.13

what is the basis of payment for majority of the employees?

In this concern the response received from the workers that payment is done on monthly
basis.

1.21.14 Q.14

Does this establishment grant its employees any of the following?


(Check as many as applicable)

Leave Benefit As per govt. act Employers decision


Vacation leave YES Not Available
Sick leave Not Available YES
Privilege leave YES Not Available
Maternity leave Not Available Not Available
Others, specify Not Available Not Available

Allowances, Bonuses
Cost of living allowances YES Not Available
Productivity bonuses Not Available YES
Transportation allowances Not Available YES
Representation allowances Not Available Not Available
Incentive pay Not Available YES

Social Security Schemes


Separation/Termination pay Not Available YES
Retirement pay Not Available YES
Pension plan Not Available YES
Life insurance (for staff only) Not Available YES
Accident and sickness insurance Not Available YES
plan
Medicines (for staff only) Not Available YES

ANALYSIS:

In the concern of granting leaves, bonuses and social security schemes the response
received was that vacation and privilege leaves are only granted and as per according to
the governments act where as no maternity leaves are granted neither by government act

© Indira Gandhi National Open University, New Delhi Page 53


nor on employers decision. However, as there are no female workers, no maternity leaves
granted are but natural.

In allowances, productivity bonuses, transportation allowances, and incentive pay are


granted according to employer’s decision. Whereas only cost of living allowances (for
staff only)is granted as per the government act.

In social security schemes separation/termination pay, life insurance plan (for staff only),
pension plan, retirement pay, accident and sickness insurance plan and medicines (for
staff only) are granted as according to the employer’s decision.

1.21.15 Q.15

What does management do to improve the relations between superiors &


subordinates in the organization?

In the concern of what management does to improve the relations between superiors and
subordinates in the organization, the response is that the management adopts following
actions to improve the relations and trust of workers on management, which are as
follows:

1. TRAINING AND DEVELPOMENT PROGRAMMES:


The management of OTIS takes every possible action to improve the relations between
workers and management because company depends on workers to achieve the goals and
survive in the competitive market. Management tries to make good relations with
workers for this they organizes various training and development programmes for
workers at regular time period whenever required.
2. GET TOGETHER:
Management also arranges get together for workers so that they can enjoy and recharge
themselves to achieve new targets by removing and lowering down the tensions regarding
to the work.
3. GIFTS:
Gifts are also given to the workers for achieving a desired work performance, regular
present on working days, etc. this encourages the workers to work hard and motivate
them to achieve the desired target taking less time then the standard so that they may be
rewarded for doing so.
All of the above activities create a good working environment in the company. By which
workers are encouraged and motivated to work hard. This ultimately results into
achievement of goals and objective of firms and individuals. Hence the relation between

© Indira Gandhi National Open University, New Delhi Page 54


workers and management are very satisfactory and above analysis of questionnaire
proves this.

1.22 INTERPRETATION

These results or survey that about 85% employees are satisfied with the management
activities and these results in a better working environment and building of good relations
between workers and management but rest of the sample had negative attitude towards
the management. This is so they are dissatisfied with the management of Otis. This early
finding is quite similar to the performance of evidence that has since been reported.

The view that is clearly taken is that the majority of gains and management policies and
practices fully employed tend to have good relations in the company. But still there is lot
to do and improve the communication level and overall relations. This survey indicated
that though the workers and management have good understanding and trust on each
other but there is still a long way to go.

1.23 FACTS AND FINDINGS

Following are the findings of the research project:

1. The finding of the study reveals that the relational level of workers is
significantly associated with need satisfaction. The higher the relational level
greater is the need satisfaction.
2. Management policies play a vital role in smoothing the relations. Better
and liberal management policies improve the relations between workers and
management. Also it increases the trust of workers in management of the
company.
3. An important finding is that satisfaction varies with the jobs one holds and
the level education of the worker. Because due to low education level, their
mentality is also small. This affects the policy and decision making by the
management.
4. It also founded that (by observation and discussions) workers creates
issues willingly, to affect the management functioning, generally in end of the
month when the work load is more both on workers and management to achieve
the production target and make payments of wages and salaries of workers and
staff, respectively.
5. The wages and allowances are according to the settlement; hence they
have no issue of dispute relating to increase in wages and allowances.
6. By observation it was founded that there is a lack of unity among workers
to some extent, and they have to support each other either wrong or right issues,
whether one like it or not, as they are the member of union.
7. Management consults with union leaders or union officers on almost all
the issues to make a best decision.
8. Workers in Otis are from different economic, cultural and social
background. This difference of background has a clear effect over the thinking of
the workers. Hence in Otis controlling workers of different thinking and
background requires a little extra effort.

© Indira Gandhi National Open University, New Delhi Page 55


9. As Otis is an MNC and MNC’s always recruits employees who are
experienced, specially the managers. In the same way the managers here are very
experienced and they clearly know how to get work done through workers.

1.24 INDUSTRIAL RELATIONS IN OTIS


Otis Elevators India Ltd.-Northern Region is the principle employer
which hires workers as per its requirement time to time. Otis-NR has a work
force of 187 workers. Whereas front liners and contract labors constitute of
72.78% & 16.81 % respectively.

Industrial relations are the relationship between employees and management or between
workers and management, particularly the groups of workers represented by the union.
As for the proper functioning and continuous production of taps in the plant, management
tries to recruit new laborers and controls them according to the plans to achieve the goals
and objective. The management tries to satisfy the need and utilizes effectively the skills
and knowledge of the workers.

The managers emphasizes on building of good relations with workers. They makes
various policies regarding working conditions, working hours, transport facilities, canteen
facility etc. so that the workers working in the organization cannot leave the plant and the
new candidates should attract and apply for the various jobs. In brief we can say that the
relations between employees and management in this establishment are satisfactory, as
human needs and desired cannot be fully satisfied.

There are two dominant aspects of the industrial relations scene in Otis also as it is
modern industrial society:

1. COOPERATION: - The modern industrial action is based upon cooperation between


labor and capital. Here, labor stands for the workers who man the factories, mines, and
other industrial establishments or services. Capital stands for the owners of business
enterprises who supply the capital and own the final products. The cooperation between
the two is one of the basic requirements for the smooth functioning in the plant and the
growth. In Otis, cooperation flows from the pursuit of self-interest both by the owners of
capital and the labor power, i.e. workers. There is a fair degree of give and take as it
offers employment, wages and other amenities of life to the workers.

2. CONFLICT: - The second aspect of the system of industrial relations in Otis is the
existence of conflict. Conflict, like cooperation, is inherent in the industrial relations set
up of today. It becomes apparent when industrial disputes resulting in strikes and lock-
outs become frequent. The prevailing industrial unrest, the frequency of work –stoppages
resulting either from strikes or lock-outs and the slowing down of production, are the
occasional expressions of the ever-present and latent conflict between workers and
management.

1.25 COMMUNICATION BETWEEN WORKERS &


MANAGEMENT:

Communication is the process by which information is transmitted between individuals


and/or organization so that an understanding response results can be obtained. It is an

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exchange of facts, ideas, opinions, or emotions by two or more persons. In Otis,
communication between workers and management is evidently very good. There is a
continuous two way flow of information between the management and workers. In Otis,
regular meetings between senior managers and workers are conducted once in a month, in
which the workers put their problems and issues in front of managers in these meetings.
Managers also tries to solve their problems and fulfills their demand if seems to be
relevant. Regular meeting are also conducted between supervisors and managers, in
which the supervisors gives detailed information about each and every worker working
under him.

There is frequent walk around of work sites by senior management officials. They look
the proper functioning in the each and every department of the plant. They also seek for
any new change which can be bringing in the production process. The management also
makes various suggestion schemes at regular time period for employees. The main
objective of making these suggestion schemes is to develop the workers and employees
in their all respective fields. The management has put up union notice boards. All notices
concerning workman shall be displayed on the notice board maintained for such purpose
at the entrance or at conspicuous place in the factory. It shall be the responsibility of each
workman always to be acquainted with such orders, notices, instructions or
communications as may be displayed on the notice board of the company from time to
time.

So the communication between the management and workers are presently very
satisfying for both sides. All workers are equally treated by the management, in case
having any problem or grievances. That’s why the good communication between the
management and workers results in smooth functioning of the business. Not only has this
it also built a god personal and organizational relations between them. This collectively
results in achievement of organizational and personal goals and objectives.

Workers and management are like the two tyres of a scooter. Whenever one gets
damaged other gets affected and stops working or when one gets damage other is useless.
So both are needed to work properly and collectively. In the same way, workers and
management is needed to work combined to achieve the goals and objectives of the
company. For this, the management of Otis consults with union officers about the staffing
level of management sometimes. Management always consults union officers about
occupational health and safety. Health and safety is an important issue for management as
well as for workers, because good health have clear effect on production and during
production process precautions are must to be safe from any casualty.

When a new technology is to be introduced in the Otis, the management always consults
the workers about their views regarding that new technology, because they are the first
person who faces the problem and has best knowledge about the machines and
production process. So management always consults with the workers about the
introduction of new technology. Before bringing major changes in products the
management always consults with workers. This is done to know about a rough estimate
of time consumed in production of single piece and material consumed and also a rough
idea of cost incurred on production of that single unit.

© Indira Gandhi National Open University, New Delhi Page 57


1.26 OVERALL REALTIONS BETWEEN WORKERS &
MANAGEMENT:

As describe earlier in this study report that industrial relations are basically the
interaction between employers, employees and the government and the institutions and
associations through which such interactions are mediated. In this, the relationship that
exists within the industry between the employer and his workmen is studied.

In Otis, the workers and management cooperates with each other in all respect and
activities to achieve the desired goals and objectives. But there is a lack of full support
without any personal objectives. The communication level in Otis is quite good. There is
a two way flow of information among workers and management and both shows a keen
interest in each other as if one works the another will give the same response as he get.

The workers maintain a good level of discipline in the company. Both support each and
every activity. Increasing and maintaining the level of discipline in the working
environment is a very important and basic need to achieve the targets. The management
continuously tries to maintain the discipline in the company and workers co-operates the
management but still there is certain issues on which workers creates indiscipline.

Otis provides number of various facilities like transportation facility, canteen facility, etc.
to the workers and it employees. These facilities are given to maintain the trust of
employees on the company. So that they may not leave the company. Trustworthy ship is
also an important aspect of Otis family, i.e. the workers and staff members. Lack of
trustworthy ship in workers and management leads to downfall of the company. Each and
every organization makes efforts to increase the level of trust in its employees. In the
same way in Otis also workers and management enjoys a good level of trust.

So overall relations in the company are very satisfactory and earlier analysis of
questionnaire proves this.

1.27 GRIEVANCE PROCEDURE:


1.27.1 OTIS Grievance Procedure

The OTIS Grievance Procedure identifies the necessary steps for handling
Disputes that have not been resolved through the normal process of reasoned
discussion. The grievance process is intended to define clearly the matters that
are at issue; to assure the staff member that his/her complaint or problem has
been presented to and considered by appropriate company’s officials; and to
assure the Otis’s community that decisions affecting staff members’ work
relationships in the workplace are fully considered.

Any staff member who has a grievance with respect to appointment, promotion,
salary, assignment of duties, academic freedom or working conditions and who
has been unable to resolve the matter with his/her supervisor, or with the project
leader/principal investigator of a grant supporting his/her work, or an officer of
the company, can bring this matter to the attention of the company’s Grievance
Officer or any other OTIS’s officer. The Grievance Officer or company’s officer

© Indira Gandhi National Open University, New Delhi Page 58


will determine (possibly in consultation with other company’s management) if
the allegations are related to scientific misconduct or unlawful discrimination or
harassment, in which case other specific policies will be applied. All allegations
of unlawful discrimination or harassment are to be handled under the
Laboratories policy regarding “Sexual Harassment”. All allegations of
misconduct in scholarship and research are to be handled under “OTIS’s Policies
and Procedures on Research Misconduct”.

The Grievance Officer or other OTIS officer, within seven (7) days after
receiving the complaint, will inform the staff member under which policy or
procedure the complaint should be addressed and how to proceed. If the
allegation falls under the Grievance Procedure, then the staff member will
provide a written summary of the grievance to the Chief Executive Officer or to
the MD, if the grievance is against the action of the Chief Executive Officer or if
the Chief Executive Officer for any other reason is unable to consider the
grievance. If a resolution acceptable to the staff member is not thereby effected,
or if the staff member has not received a response from the Chief Executive
Officer or MD within thirty days after having submitted his/her written
grievance, the staff member may petition to the Grievance Officer for formal
consideration of the grievance. A petition will set forth in detail the nature of the
grievance and will state against whom the grievance is directed. It will contain
any data that the petitioner deems pertinent to the case. The individual or
individuals against whom the grievance is being alleged will also be asked to
provide a written response to the grievance.

All grievances arising out of or in course of employment shall be resolved by


adopting following grievances procedures:

Step I : The aggrieved workman in the first instance shall submit his
grievance in writing in person to his immediate supervisor, who would look into
the grievances of the aggrieved workman within 48 hours on receipt thereof and
take suitable action, if felt necessary by him.

Step II : In case the workman is not satisfied with the action taken by his
immediate superior or no action is taken within the above stipulated period, he
shall present his grievances in writing to the Head of the Department within 3
days after the expiry of 48 hours of his grievances having been brought before
his immediate supervisor. The Head of the Department shall investigate and take
suitable action within 7 days of receipt of such grievance. The Labor Welfare
Officer or an Officer of the Personnel Department shall participate actively for
settling the grievance.

Step III : In case the grievance remains unsettled with the Head of the
Department, the grievance shall be bought in the notice of General Manager
whose decision shall be final. In no case, recourse to intimidation, violence,
threat, unauthorized assembly inside / outside the premises, gherao etc. will be
adopted for the redressed of grievances there shall be no slowing down or
interruption of work and no industrial dispute shall be raised before the above
procedure is exhausted.

© Indira Gandhi National Open University, New Delhi Page 59


1.28 CAUSES OF INDUSTRIAL DISPUTES IN OTIS:

The causes of industrial disputes can be broadly classified into two categories: economic
and non-economic causes. The economic causes will include issues relating to
compensation like wages, bonus, allowances, and conditions for work, working hours,
leave and holidays without pay, unjust layoffs and retrenchments. The non economic
factors will include victimization of workers, ill treatment by staff members, sympathetic
strikes, political factors, indiscipline etc.

1.28.1 WAGES AND ALLOWANCES

Since the cost of living index is increasing, workers generally bargain for higher wages to
meet the rising cost of living index and to increase their standards of living. In OTIS, the
wages and allowances are fixed as according to the settlements. It was clearly defined in
the settlement about the wages and allowances which are to be given to workers. So
wages and allowances are not major causes of conflict in OTIS, because the wages and
allowances are fixed and cannot be changed till amendment in the settlement. When the
amendments are to be made in the settlements the workers generally opposes the wages
given to them and demands to increase their wages.

1.28.2 INDISCIPLINE

Maintenance of discipline in the plant is one among the main objectives of the
management in OTIS. Managers and supervisors emphasizes on creating and maintaining
a disciplinary environment in the plant. They take various actions to maintain the
discipline. But when the demand or need of the workers is not fulfilled by the
management, which management think is irrelevant, then disputes occurs. But it is solved
before it creates any serious problem for the plant.

1.28.3 OVERTIME

This is also one of the causes of industrial disputes in OTIS. Workers create a scene on overtime
when they know that management will start overtime to achieve the monthly target of production,
for which they ask for overtime.

1.28.4 LEAVE AND WORKING HOURS

Leaves and working hours have not been so important causes of industrial disputes in
OTIS. But still it is a cause of industrial disputes. There is a fixed settlement procedure
for leave benefits in OTIS. The plant is working on shift basis. Following are the shift
timings:

G - 09:00 am to 05:30 pm

A - 06:00 am to 02:30 pm

B - 02:30 pm to 11:00 pm
© Indira Gandhi National Open University, New Delhi Page 60
C - 11:00 pm to 06:00 am

Shift working shall be regulated in accordance with the provisions under the Factories
Act. The Management may regulate shift working or other working of workers taking
into consideration the convenience of working. Employees shall not be change their shifts
without prior permission.

1.28.5 WORKING CONDITIONS/ENVIRONMENT

When a plant is established, its whole map & layout is first need to be getting registered. It
considers various standards like proper space, ventilation, facilities, emergency exits etc.
generally in OTIS, workers raises issues on ventilation, improper dusting, lighting in certain
departments etc.

1.28.6 MISCELLANEOUS

The Miscellaneous factors include

i. Work load

ii. Standing orders/rules/service condition/safety measures

iii. Non-implementation of agreements & awards etc.

iv. Change in working time arrangements

v. Introduction of new technology

vi. Transportations facilities

vii. Canteen facilities

viii. Revise study of incentive schemes

ix. Individual grievances

1.29 GENERAL CONCLUSION

Today, many organizations are structured very differently from the way they would have
been 10 year ago. There are so many factors for such structural changes like increase in
level of education of the people, performance appraisal, tough competitions, modern
researches etc. In the same way industrial relation also played an important role in
bringing out the changes in the organization. Amendments in various laws time to time,
increasing working area of organization etc. also responsible for these changes.

It can be said that work and behavior forms an essential part of human activity. Work
occupies so much of man’s life span, that the satisfaction or dissatisfaction from it can
affect the individual behavior considerably in all walks of life. This sometimes results in
misunderstanding between management and workers on one or more issues. It becomes

© Indira Gandhi National Open University, New Delhi Page 61


extremely important to enquire about the factors that are associated with work in the
organization. The impact of work and working conditions on men cannot be denied. It
operates as a great stabilizing, integrating and ego satisfying, central influence in the
pattern of each person life. For this men have to make certain adjustments, compromises
and have to co-operate the management of the organization to achieve organizational and
individual goals.

When the co-operation is of very high level between workers and management then they
makes a very healthy working environment but on the other hand if management doesn’t
co-operates with workers and Vic-e-versa then this conditions gives origin to grievances
which results in disputes. Due to this, relations between workers and management gets
disturbed and ultimately the whole process of achieving goals and objectives disturbs.
When this happens the efficiency and effectiveness in workers and management also
affected.

In an organization workers and management has significant role to play. Management


tries to satisfy the workers needs and solve their problems as soon as possible because
when they are dissatisfied they generally stops or slow downs the production process.
Management never wants that workers will stop or slow down the production process so
it takes appropriate actions to solve the problems.

1.30 RECOMMENDATION & SUGGESTIONS FROM SURVEY

The management can improve the actual relations between workers and management by
utilizing the following tips:

1. Both management and unions should develop constructive attitudes towards each other

2. All basic policies and procedures relating to Industrial Relations should be clear to
everybody in the organization and to the union leader. The personnel manager must make
certain that line people will understand and agree with these policies.

3. The personnel manager should remove any distrust by convincing the union of the
company’s integrity and his own sincerity and honesty. Suspicious, rumors and doubts
should all be put to rest.

4. Management should encourage right kind of union leadership. While it is not for the
management to interfere with union activities, or choose the union leadership, its action
and attitude will go a long way towards developing the right kind of union leadership.

5. The management should measure workers satisfaction regularly.

6. Management can also increase in the allowances by making amendments in the


settlement.

7. Management can also improve the relations by keeping the job interesting. First, it
makes time go faster and second It keeps the employees challenged. If the employees get
bored, they will pay less attention to their duties.

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8.Introduce a mediator to help both sides to achieve a greater understanding of the
underlying issue as well as provide constructive tools and techniques to avoid further
conflicts.

RECOMMENDATIONS &
CONCLUSIONS (ACTION POINTS)
The following industrial best practices in form of recommendations and implementation
on a short and long term basis can play a vital role in solving the primary objective of the
research project.

1.31 FAMILY SOCIALIZATION ACTIVITY-


The model is based on the TAFE TRACTOR, Bangalore model. The idea is to launch a
sustained family involvement and cultural reorientation of families especially the spouses
of both the factions under HR supervision whereas group activities under the guise of
corporate social responsibility can be organized in phased manner.

Phase 1: Organize social welfare activities by the spouses of the two groups separately to
attract attendance. Highlight the activities as CSR for welfare and giving back to the
society, a primary stated aim of the Union who thereby cannot question the motives
without questioning its founding principles.
Phase 2: Integrate social activities of wives from both the factions under female HR
leadership in such a manner so as to be imperceptible on workers front. This can be done
by deliberately bringing together the social activities in the same area/time frame etc.
Phase 3: Organize “Meet the MD” meets for the socially active spouses. The meets will
be strictly “Non-Official Work” types where the top management will involve itself in

© Indira Gandhi National Open University, New Delhi Page 63


giving social welfare tips, organizing various recreational and relationship building
activities strengthening the intra spouse ties.
Phase 4: We envision further that the influence of this handful of socially active spouses
on their areas of activity to generate the curiosity factor to bring in the other more
reluctant ones in the fold. This in turn can be further explored to bring in the needed
cultural changes to reintegrate the families and by extension the employees of the two
factions. (Frerks.Georg., Women's Role In Conflict Prevention,Conflict Resolution & for
Conflict Reconstruction)

1.32 SOCIAL CAUSE-


Simultaneous to the above proposal, i suggest a comprehensive bouquet of social
activities under the banner of CSR for the workers in general. Area wise campaigns like
Blood Donation, Environmental and Safety Camps for Neighborhoods etc. will bring
together the entire staff irrespective of inherent frictions on basis of a social/humanitarian
call.

1.33 FAMILY INTEGRATION ACTIVITY-


In light of the prevalent nature of the North Indian worker mindset, we propose further a
family integration process whereby

1.33.1 HEALTH CHECK UPS –

Free monthly health checkups like blood pressure and blood sugar monitoring camps in
tandem with other such socially significant programs like yoga and meditation camps will
be undertaken area wise/region wise. This type of programs have the unique advantage
that the feuding factions cannot demand separate time slots as tests like fasting sugar and
blood pressure tests need to be measured in the morning only. Further, these programs are
relatively low cost in the sense that:
-Low fixed cost (Approximately two apparatus namely glucometer and blood pressure
measurement instrument will cost around Rs.5000 and can be used again and again.)
-Low Variable cost (Approximately, each strip/needle of the glucometer costs Rs.10 per
person.)
-No Medical Professional (Doctor) will be required as the tests are simple and can be
easily carried out by internal volunteers.
-Dieticians, Physiotherapists and Yoga experts are available for the proposed health
welfare camps at nominal rates.
These campaigns can also be beneficial long term as not only CSR activities but also as
employee welfare measures.

1.33.2 EMERGENCY AID REGISTER-


© Indira Gandhi National Open University, New Delhi Page 64
Further in the process, I suggest that the company compiles an EMERGENCY AID
REGISTER consisting of the blood groups and other vital medical details of the
employees of all hue. This should be HIGLIGHTED amongst the entire staff so that in
cases of emergency, blood donations can be arranged effortlessly intercompany. This
policy will further the integration of the employees as no friction can justify avoiding life
saving aids.

1.34 CONTRIBUTION POLICY IN CASE OF ACCIDENT:


To reintegrate the factions i propose that the Company brings in as a well publicized
policy that the contribution to an employee in case of his sudden demise will be beared
by even the field executives and that to in a proportion slightly higher than the unionized
staff. It should also be communicated that the policy was on behest of the Field
Executives representation. This in turn will create a sense of empathy among the workers
as they will see it as a goodwill gesture on part of the field executives.

1.35 BEHAVIORAL TRAINING TO FIELD EXECUTIVES:


That there is a friction between the unionized workers and field executives is a fact
undeniable as of today. The causes of this are varied but it is pertinent to state that the
field executives are a part of the feud that can be more easily trained to handle the
antagonism. I propose behavioral trainings for the field executives to imbibe into them
the grace to accept criticism as a gift in an unpleasant wrapper.

1.36 SENSITIVITY TRAINING FOR RESPECT:


We suggest that in a major inclusion, the company includes “RESPECT FOR EACH
OTHER” as a vital and highly publicized policy. This idea of REPSECT is in accordance
to the RESPECT IDEALS OF AN ORGANISATION as implemented by BP and many
others. It calls for stressing on equality for all as human beings and respect of the others.

1.37 EQUITY AND FAIRNESS BRANDING:


The suggestion calls for KRA Justification for the field executives. This calls for
redefining and visibly enhancing the responsibilities of the field executives to justify the
increased payment to them. This will bring equity among the employees as even the
unionized workers can v to themselves that the field executives are working more and
hence are eligible for the increased payment given to them. Further, the whole process
must be very transparent and every step in the direction must be communicated fully to
the workers also.

1.38 VOLUNTEER PROGRAM:


The suggestion is concerned with the fact that there is a certain part of workers who are
and will be interested in carrying out higher responsibilities if given the chance. Hence i
suggest that the operational managers do delegate such work to interested workers
informally so as to encourage and groom them for future executive positions.

1.39 DIRECT RECRUITMENT:


To further bring in equity among the employees i also suggest that the field executive
position may not be confined to promoting union workers only but also include direct
recruitments. This will dilute the unionized workers acrimony to field executive par se
and hence help in further reintegrate the operational workers.

© Indira Gandhi National Open University, New Delhi Page 65


1.40 SAY MEET:
A pertinent and useful industry endorsed initiative; we recommend the formation of a
committee consisting of representatives of the workers, the field executives and the
management cadre to discuss various development goals. The meeting will strictly keep
away from contentious issues and must be used as a forum of critical development
initiatives across the organization that even the union cannot refuse to attend.

LIMITATIONS
Any study analyzing human factor in the work setting cannot claim perfection in
view of the nature of the subject itself and present one in no exception to it.
During the study, a number of limitations and constraints were faced and it is
necessary to point them out at the very outset.

It is an industrial study. Its scope is limited and excludes deeper enquiry into
other aspects of industrial relations, such as wage structure, employment, job
security and other personal issues such as promotion, training, absenteeism, labor
turnover etc. The non-availability of adequate and reliable statistical information for
some years and for some vital issues has made it difficult to study all the important issues
in industrial relations in proper perspective. For example, detailed statistics for real wages
and earnings for all the labor and staff are not available; this is due to security issues of
the company. I would like to list the limitations of the study here:

• Considering the fact that nothing is perfect in the world. Every individual bound
to make mistake at some points.
• The Company cannot disclose the data due to security issues.
© Indira Gandhi National Open University, New Delhi Page 66
• Limitations of primary data cannot be ruled out, such as unwillingness to disclose
certain information.
• Limited knowledge of the researchers in the field of research may lead to
interpretational errors.
• The results have not been tested.
• A busy schedule of managers and workers also makes the collection of
information o information a very difficult one.
• The research was based on primary collection of data through voice interview so
there may be chances of human error and biasness.
• The research was conducted during the salary day when all the employees gather
together at the corporate office. As otherwise preoccupied, the sample size was
therefore low.
• The study had time constraints as it had to be submitted in the stipulated period of
time limit given.
• The study had constraints of variety. Though i tried to include a good variety of
Managers from varied departments but still it is not the real representative of the
whole organization.
• The study had the constraint of having missed a vital link in the entire saga – The
perspective of the union due to ongoing settlement negotiations. Thus, non-
availability of union perspective was felt .This is because of lack of access to the
union during the project due to internal compulsions.
• The study had limitations of structure as all the primary data collection was based
on unstructured explicit interviews.
• Most of the respondents who were there were from management so a sufficient
number for the other side was absent.
• The period of the study is during highly sensitive negotiations for the tri-yearly
Union-Management settlement, which may skew the results accordingly but in
absence of all-round perspective there is no measure to adjust its real effects.

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